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FNCB Bancorp , Inc. Press Release FOR IMMEDIATE RELEASE Exhibit 99.1 FNCB Bancorp , Inc. Announces 30 % Increase in Second Quarter 2021 Net Income Dunmore , Pa . , July 30 , 2021 / Globe Newswire / -FNCB Bancorp , Inc. ( NASDAQ : FNCB ; www.fncb.com ) , the parent company of Dunmore - based FNCB Bank ( the " Bank " ) , ( collectively , " FNCB " ) today reported net income of $ 5.2 million , or $ 0.26 per basic and diluted share , for the three months ended June 30 , 2021 , an increase of $ 1.2 million , or 30.0 % from $ 4.0 million , or $ 0.20 per basic and diluted share , for the same three months of 2020. The increase in second quarter 2021 earnings was largely due to a $ 2.4 million increase in net interest income , coupled with a $ 0.7 million reduction in the provision for loan and lease losses . These positive factors were partially offset by a $ 0.8 million reduction in non - interest income and a $ 0.8 million increase in non - interest expense . For the six months ended June 30 , 2021 , net income totaled $ 11.1 million , or $ 0.55 per basic and diluted share , an increase of $ 5.0 million , or 81.8 % , from $ 6.1 million , or $ 0.30 per basic and diluted share , for the same six months of 2020. The earnings improvement for the year - to - date period ending June 30 , 2021 was primarily due to a $ 4.7 million increase in net interest income , coupled with $ 1.6 million reduction in the provision for loan and lease losses , partially offset by a $ 0.8 million increase in non - interest expense . For the three and six months ended June 30 , 2021 , the annualized return on average assets was 1.38 % and 1.49 % , respectively , and 1.21 % and 0.96 % , respectively , for the same period of 2020. The annualized return on average equity was 13.37 % and 14.31 % , respectively for the three and six months ended June 30 , 2021 , compared to 11.62 % and 8.87 % , for the comparable periods of 2020. FNCB declared and paid dividends to holders of common stock of $ 0.060 per share for the second quarter of 2021 and $ 0.120 per share for the six months ended June 30 , 2021 , a 9.1 % increase compared to $ 0.055 and $ 0.110 per share for the same periods of 2020 . Second quarter 2021 results as compared to the second quarter of 2020 : • Second quarter net income increased $ 1.2 million , or 30.0 % , to $ 5.2 million , or $ 0.26 per share in 2021 compared to $ 4.0 million , or $ 0.20 per share in 2020 ; • Yield on earnings assets ( FTE ) increased 10 basis points to 3.80 % in 2021 from 3.70 % in 2020 ; • Cost of funds decreased 39 basis points to 0.30 % in 2021 from 0.69 % in 2020 ; • Net interest margin ( FTE ) increased 40 basis points to 3.58 % in 2021 , compared to 3.18 % in 2020 ; • Provision for loan and lease losses decreased $ 0.7 million , or 81.3 % ; • Non - interest income decreased $ 0.8 million , or 31.7 % ; • Non - interest expense increased $ 0.8 million , or 12.5 % ; and • Efficiency ratio improved to 51.86 % in 2021 compared to 56.53 % in 2020 . Summary financial position at June 30 , 2021 as compared to December 31 , 2020 : • Total assets grew $ 59.1 million , or 4.0 % , to $ 1.525 billion at June 30 , 2021 from $ 1.466 billion at December 31 , 2020 ; • Loans , net of deferred loan fees and cost and unearned income , increased $ 75.4 million , or 8.4 % , to $ 976.5 million at June 30 , 2021 from $ 901.1 million at December 31 , 2020 ; • Included in net loans were PPP loans outstanding , net of loan origination fees and costs , of $ 85.8 million at June 30 , 2021 ; • Total deposits increased $ 50.7 million , or 3.9 % to $ 1.338 billion at June 30 , 2021 from $ 1.287 billion at December 31 , 2020 ; • Non - performing loans as a percentage of total loans improved to 0.47 % at June 30 , 2021 from 0.62 % at December 31 , 2020 ; and • The Bank was well capitalized with total risk - based capital and leverage ratios of 15.79 % and 9.90 % , respectively , at June 30 , 2021 , and 15.79 % and 9.57 % , respectively , at December 31 , 2020 . " We are very pleased with our second quarter performance , " stated Gerard A. Champi , President and CEO . " Our net interest income was favorably impacted by origination fees recognized on forgiven PPP loans and the early payoff of two loans originated under the Federal Reserve Bank's Main Street Lending Program . Additionally , we were able to continue to reduce our deposit costs for eight consecutive quarters . We also redirected some of our excess liquidity into the investment portfolio to enhance net interest income going forward . We experienced an uptick in loan demand during the second quarter of 2021. Demand for our proprietary WOW mortgage product was very strong and we saw some renewed demand in the commercial sector as well . Our asset quality remains favorable , with continued improvement in non - accrual loan levels and delinquency rates . As we head into the second half of the year , we are cautiously optimistic but remain vigilant as the COVID - 19 pandemic continues to evolve , " concluded Champi . 1