Products and Services
Retail Banking
The Bank provides a wide variety of traditional banking products and services
to individuals and businesses, including Debit Cards, Online Banking, Mobile
Banking, Image Checking and E-Statements. Deposit products include various checking,
savings and certificate of deposit products, as well as a line of preferred
products for higher-balance customers. The Bank is a member of the Promontory
Interfinancial Network and participates in their Certificate of Deposit Account
Registry (“CDARs”) and Insured Cash Sweep (“ICS”) programs,
which allow customers to secure Federal Deposit Insurance Corporation (“FDIC”)
insurance on balances in excess of the standard limitations.
The Bank also offers customers the convenience of 24-hour banking, seven days
a week, through FNCB Online Banking (“FNCB Online”) via a secure
website, https://www.fncb.com. FNCB Online’s product suite includes Bill
Payment, Finance Works, Funds Transfer and POP Money (person to person transfers),
and Purchase Rewards. FNCB Online can also be accessed through the Bank’s
mobile application. Customers can also access money from their deposit accounts
by using their debit card to make purchases or cash withdrawals from any automated
teller machines (“ATMs”) including ATMs located in each of the Bank’s
branch offices as well as additional locations. FNCB’s mobile deposit,
available to personal banking customers with access to FNCB Online Banking and
an eligible deposit account, allows customers to deposit checks, electronically
from start to finish, from anywhere at any time.
Through FNCB Online, customers can directly access their accounts, open new
accounts and apply for a mortgage or obtain a pre-qualification approval through
the Bank’s mortgage center. Telephone banking (Account Link), a service
that provides customers with the ability to access account information and perform
related account transfers through the use of a touch tone telephone, is also
available. The Bank offers Bounce Protection, Savings Overdraft Protection and
Instant Money loans which provide customers with an added level of protection
against unanticipated overdrafts due to cash flow emergencies and account reconciliation
errors. The Bank offers its customers an identity theft protection plan through
a strategic partnership with an independent vendor. Subscribers select which
coverage package they desire by visiting the Bank’s secure website and
choosing “Identity Protection” from the Resources menu.
FNCB Business Online Banking is a menu driven product that provides the Bank’s
business customers direct access to their account information and the ability
to perform internal and external transfers, wire transfers and payments through
ACH transactions, and process Direct Deposit payroll transactions for employees,
24 hours a day, 7 days a week, from their place of business. Remote Deposit
Capture allows business customers the ability to process daily check deposits
to their accounts through an online image capture environment. Business customers
can access money from their deposit account by using their “business”
debit card, providing a faster, more convenient way to make purchases, track
business expenses and manage finances.
Lending Activities
The Bank offers a variety of loans, including residential real estate loans,
construction, land acquisition and development loans, commercial real estate
loans, commercial and industrial loans, loans to state and political subdivisions,
and consumer loans, generally to individuals and businesses in its primary market
area.
Residential Mortgage Loans
The Bank offers a variety of fixed-rate one- to four-family residential loans
including First Time Homebuyer mortgages and Home Possible® mortgages to
meet the home financing needs of customers with low downpayments. Except for
the WOW mortgage, one- to four-family mortgage loans are originated generally
for sale in the secondary market. However, management may portfolio one- to
four-family residential mortgage loans as deemed necessary according to current
asset/liability management strategies.
Construction, Land Acquisition and Development Loans
The Bank offers interim construction financing secured by residential property
for the purpose of constructing one- to four-family homes. The Bank also offers
interim construction financing for the purpose of constructing residential developments
and various commercial properties including shopping centers, office complexes
and single purpose owner-occupied structures and for land acquisition.
Commercial Real Estate Loans
Commercial real estate mortgage loans represent the largest portion of the Bank’s
total loan portfolio and loans in this portfolio generally have larger loan
balances. The commercial real estate loan portfolio is secured by a broad range
of real estate, including but not limited to, office complexes, shopping centers,
hotels, warehouses, gas stations, convenience markets, residential care facilities,
nursing care facilities, restaurants, multifamily housing, farms and land subdivisions.
Commercial and Industrial Loans
The Bank generally offers commercial loans to individuals and businesses located
in its primary market area. The commercial loan portfolio includes, but is not
limited to, lines of credit, dealer floor plan lines, equipment loans, vehicle
loans and term loans. These loans are primarily secured by vehicles, machinery
and equipment, inventory, accounts receivable, marketable securities, deposit
accounts and real estate. At December 31, 2015, commercial and industrial loans
totaled $149.8 million, or 20.5%, of the total loan portfolio.
Consumer Loans
Consumer loans include both secured and unsecured installment loans, lines of
credit and overdraft protection loans. The Bank is also in the business of underwriting
indirect auto loans which are originated through various auto dealers in northeastern
Pennsylvania and dealer floor plan loans. Generally, the Bank also offers home
equity loans and lines of credit with a maximum combined loan-to-value ratio
of 90%, based on the appraised value of the property. Home equity loans have
fixed rates of interest and are for terms up to 15 years. Home equity lines
of credit have adjustable interest rates and are based off of the prime interest
rate.
State and Political Subdivision Loans
The Bank originates state and political subdivision loans, including general
obligation and tax anticipation notes, primarily to municipalities in the Bank’s
market area.
Wealth Management
The Company offers customers wealth management services through a third party
provider. Customers are able to access alternative deposit products such as
mutual funds, annuities, stocks, and bonds directly for purchase from an outside
provider.
Deposit Activities
In general, deposits, borrowings and loan repayments are the major sources of
the Bank’s funds for lending and other investment purposes. The Bank grows
its deposits within its market area primarily by offering a wide selection of
deposit accounts. Deposit account terms vary according to the minimum balance
required, the time periods the funds must remain on deposit and the interest
rate, among other factors. In determining the terms of the Bank’s deposit
accounts, the Bank considers the interest rates offered by its competitors,
the interest rates available on borrowings, its liquidity needs and customer
preferences. The Bank regularly reviews its deposit mix and deposit pricing
as part of its asset/liability management, taking into consideration rates offered
by competitors in its market area.