Note 6 - Bank Premises and Equipment

12 Months Ended

Dec. 31, 2019

Property, Plant and Equipment Disclosure [Text Block]

Note

BANK PREMISES AND EQUIPMENT

The following table summarizes bank premises and equipment at

December 31,

2019

and

2018:

	December 31,
(in thousands)	2019			2018
Land	$	3,537		$	3,383
Buildings and improvements		12,798			10,865
Furniture, fixtures and equipment		11,551			10,178
Leasehold improvements		3,578			3,601
Total		31,464			28,027
Accumulated depreciation		(13,946	)		(13,602	)
Net	$	17,518		$	14,425

Depreciation and amortization expense of premises and equipment amounted to

1.4

million for each of the years ended

December 31, 2019 and

2018

September 27, 2018,

FNCB executed a contract with Branch Banking and Trust Company to purchase the real property, improvements and fixtures located at

360

South Mountain Boulevard, Mountain Top, Luzerne County, Pennsylvania for

$550

thousand for the purpose of opening a branch office. The contract contains a deed restriction under which FNCB has agreed to

not

operate, sell, or lease the property for a period of

six

months from the recording of the deed. FNCB closed on the purchase of the property on

December 14, 2018

and opened the new branch in the

second

quarter of

2019.

November 5, 2018,

FNCB received approval from its primary regulator to relocate the Bank’s main office located at

102

E. Drinker Street, Dunmore, Lackawanna County, Pennsylvania, into a new state-of -the-art office, featuring the personal banker model and a relaxed, cafe-like atmosphere design to enhance the customers's in-branch banking experience. The new main office is directly across the street at

100

S. Blakely Street, Dunmore, Pennsylvania. The cost of the main office relocation project, which was completed in the

second

quarter of

2019,

approximated

$2.0

million and was funded by cash generated from operations. The former main office was renovated into office space for members of FNCB's Commercial Lending and Retail Banking Units.