Note 12 - Related Party Transactions

12 Months Ended

Dec. 31, 2022

Notes to Financial Statements

Related Party Transactions Disclosure [Text Block]

Note 12. RELATED PARTY TRANSACTIONS

In conducting its business, FNCB has engaged in, and intends to continue to engage in, banking and financial transactions with directors, executive officers and their related parties.

FNCB has granted loans, letters of credit and lines of credit to directors, executive officers and their related parties. The following table summarizes the changes in the total amounts of such outstanding loans, advances under lines of credit, net of any participations sold, as well as repayments during the years ended December 31, 2022 and 2021:

	For the Year Ended December 31,
(in thousands)	2022			2021
Balance January 1,	$	71,437		$	98,935
Additions, new loans and advances	96,978				123,717
Repayments	(89,271		)		(127,558	)
Other (1)	-				(23,657	)
Balance December 31,	$	79,144		$	71,437

(1) Other represents loans to related parties that ceased being related parties.

At December 31, 2022 and 2021 there were no loans made to directors, executive officers and their related parties that were not performing in accordance with the terms of the loan agreements. 

Deposits from directors, executive officers and their related parties held by the Bank at  December 31, 2022 and 2021 amounted to $133.0 million and $152.6 million, respectively. Interest paid on the deposits amounted to $502 thousand in 2022 and $290 thousand in 2021. 

In the course of its operations, FNCB acquires goods and services from, and transacts business with, various companies of related parties, which include, but are not limited to, fidelity bond and errors and omissions insurance, legal services, rent and repair of repossessed automobiles for resale. For 2021, goods and services acquired from related parties also included employee health insurance. FNCB recorded payments to related parties for goods and services of $0.5 million and $2.0 million for the years ending December 31, 2022 and 2021, respectively.