The First of Long Island Corporation Reports Earnings for the First Quarter of 2025 | FLIC Stock News

04/30/2025 - 05:00 PM MELVILLE, N.Y., April 30, 2025 (GLOBE NEWSWIRE) -- The First of Long Island Corporation (Nasdaq: FLIC, the “Company” or the “Corporation”), the parent of The First National Bank of Long Island (the “Bank”), reportedearningsfor thethreemonths ended March 31, 2025. Analysis of Earnings –FirstQuarter 2025 Versus Linked Quarter Net income for the firstquarter of 2025 increased$512,000 compared to the fourthquarter of 2024. The increase in net income was primarily due toa $795,000 increase in net interest income largely due to an eightbasis point improvement in the net interest margin, and a decrease in noninterest expense of $1.5 million primarily due to branch consolidation expenses of $1.4 million and vesting of equity awardsduring the fourth quarter of 2024 offset by pending merger related system conversion expenses of $468,000 and debit card chargeoffs of $243,000 during the first quarter of 2025. These were partially offset by a provision for credit losses of $168,000 as compared to a provision reversal for credit losses of $381,000 in the fourth quarter, a decrease in noninterest income of $503,000 primarily due to $233,000 of back-to-back swap fees and $225,000 of bank-owned life insurance ("BOLI") benefit payments earned in the fourth quarter, and an increase in income tax expense of $761,000 substantially due to a decrease in the percentage of pre-tax income derived from the Bank's real estate investment trust, increasing the state and local income tax due. Analysis of Earnings - First Quarter 2025 Versus First Quarter of 2024 Net income and earnings per share ("EPS") for the quarterendedMarch 31, 2025were $3.8million and $0.17, respectively, as compared to$4.4million and $0.20, respectively, for the comparable quarter in2024. The principal drivers of the change in net incomewere an increase in net interest income of $661,000, or 3.6%, which was more than offset by an increase in theprovision for credit losses of$168,000,an increasein noninterest expense of $922,000,and anincreasein income tax expense of $193,000. The quarter produced a return on average assets ("ROA") of 0.37%, return on average equity ("ROE") of 3.98%, and a net interest margin of 1.91%. Net interest income increasedwhen comparing the first quartersof 2025and 2024primarily due to a decreasein interest expense of $2.0million whichwas partially offset by a $1.4million decreasein interest income. The decrease in interest expense was a combination of a 16 basis points decrease in the cost of interest-bearing liabilities and a decrease in average interest-bearing liabilities of $92.9 million.The decrease in interest income resulted from interest-earning assets decreasing by $156.6 million offset by the yield on interest-earning assets increasing twobasis points. In the first quarter of2025, the Bank recorded a provision for credit losses of $168,000. The Bank did not record aprovision in the first quarter of 2024.The allowance for credit losses remained relatively flatwhen compared to year-end 2024 largely due to declines in historical loss rates and loan balances which were offset by an increase due to deterioration in current and forecasted economic conditions, including adjustments for economic uncertainty. The reserve coverage ratio ticked up one basis point to0.89%of total loans at March 31, 2025as compared to0.88%at December 31, 2024.Past due loans and nonaccrual loans were at $7.5million and $3.5million, respectively, on March 31, 2025. Overall, the credit quality of the loan and investment portfolios remains strong. Noninterest income decreased$57,000, or 2.1%, when comparing the firstquartersof 2025and 2024mainly due to 2024 nonrecurring items of$114,000 in real estate tax refunds, $60,000 in BOLI benefit payments, $50,000 in joint marketing fees and an additional one-time service charge cycle related to the Bank's core system conversion,which were partially offset by increases of $96,000 in merchant card service fees and $72,000 in BOLI accretion. Noninterest expense increased $922,000, or 5.7%, for the first quarterof 2025, as compared to the first quarterof2024. The change in noninterest expense is mainly attributable to the current year's expenses related to the pending merger. Noninterest expense increaseddue to merger expenses of $230,000,merger related system conversion expenses of $468,000,debit card chargeoffs of $243,000and higher legal fees, partially offset by a 2.6%year-over-year decrease in salaries and employee benefits. The decrease in salaries and employee benefitswas due to a decrease in full time equivalent employees, primarily the result of branch closings in 2024. Income tax expense increased$193,000due to an increase in the effective tax rate from6.2%in the first quarter of 2024 to 11.5%in the current quarter.The increase in the effective tax rate is mainly due to the same reasons discussed above with respect to the linked quarter changes. Liquidity Total average deposits declinedby$51.9million when comparing thefirst quarters of2025and2024. There were no overnight advances on March 31, 2025or December 31, 2024.On March 31, 2025,other borrowings were down by$75.0million from year-end 2024.At March 31, 2025, the Bank had $653.3million in collateralized borrowing lines with the Federal Home Loan Bank of New York and the Federal Reserve Bank, a$20.0million unsecured line of credit with a correspondent bank and$204.8million in unencumberedsecurities. In total,$878.1million in liquidity was available on March 31, 2025. Uninsureddeposits were 49.5%of total deposits at March 31, 2025. Capital The Corporation’s capital position remains strong with a leverage ratio of approximately 10.29%on March 31, 2025. Book value per share was $16.91on March 31, 2025, versus $16.77on December 31, 2024. The Company declared its quarterly cash dividend of $0.21per share during the quarter. There were no share repurchases during the quarter. Forward Looking Information This earnings release contains various “forward-looking statements” within the meaning of that term as set forth in Rule 175 of the Securities Act of 1933 and Rule 3b-6 of the Securities Exchange Act of 1934. Such statements are generally contained in sentences including the words “may” or “expect” or “could” or “should” or “would” or “believe” or “anticipate”. The Corporation cautions that these forward-looking statements are subject to numerous assumptions, risks and uncertainties that could cause actual results to differ materially from those contemplated by the forward-looking statements. Factors that could cause future results to vary from current management expectations include, but are not limited to, changing economic conditions; legislative and regulatory changes; changes in domestic or international governmental policies, including the imposition of tariffs; monetary and fiscal policies of the federal government; changes in interest rates; deposit flows and the cost of funds; demand for loan products; competition; changes in management’s business strategies; changes in accounting principles, policies or guidelines; changes in real estate values; and other factors discussed in the “risk factors” section of the Corporation’s filings with the Securities and Exchange Commission (“SEC”). The forward-looking statements are made as of the date of this press release, and the Corporation assumes no obligation to update the forward-looking statements or to update the reasons why actual results could differ from those projected in the forward-looking statements. For more detailed financial information please see the Corporation’s quarterly report on Form 10-Q for the quarter ended March 31, 2025. The Form 10-Q will be available through the Bank’s website at www.fnbli.com on or about May 1, 2025, when it is anticipated to be electronically filed with the SEC. Our SEC filings are also available on the SEC’s website at www.sec.gov. CONSOLIDATED BALANCE SHEETS(Unaudited)3/31/202512/31/2024(dollars in thousands)Assets:Cash and cash equivalents$67,555$38,330Investment securities available-for-sale, at fair value615,350624,779Loans:Commercial and industrial134,095136,732Secured by real estate:Commercial mortgages1,929,8811,963,107Residential mortgages1,065,3801,084,090Home equity lines33,45236,468Consumer and other1,1261,2103,163,9343,221,607Allowance for credit losses(28,308)(28,331)3,135,6263,193,276Restricted stock, at cost24,32927,712Bank premises and equipment, net28,41129,135Right-of-use asset - operating leases18,35818,951Bank-owned life insurance117,471117,075Pension plan assets, net11,69311,806Deferred income tax benefit35,02236,192Other assets22,49122,080$4,076,306$4,119,336Liabilities:Deposits:Checking$1,072,766$1,074,671Savings, NOW and money market1,587,0301,574,160Time635,789616,0273,295,5853,264,858Overnight advances——Other borrowings360,000435,000Operating lease liability20,34821,964Accrued expenses and other liabilities17,53318,6483,693,4663,740,470Stockholders' Equity:Common stock, par value $0.10 per share:Authorized, 80,000,000 shares;Issued and outstanding, 22,635,724 and 22,595,349 shares2,2642,260Surplus79,86679,731Retained earnings353,043354,051435,173436,042Accumulated other comprehensive loss, net of tax(52,333)(57,176)382,840378,866$4,076,306$4,119,336 CONSOLIDATED STATEMENTS OF INCOME(Unaudited)Three Months Ended3/31/20253/31/2024(dollars in thousands)Interest and dividend income:Loans$33,785$33,543Investment securities:Taxable5,3746,993Nontaxable95696040,11541,496Interest expense:Savings, NOW and money market deposits10,31810,083Time deposits6,4036,977Overnight advances71263Other borrowings4,5016,01221,29323,335Net interest income18,82218,161Provision for credit losses168—Net interest income after provision for credit losses18,65418,161Noninterest income:Bank-owned life insurance912840Service charges on deposit accounts829880Net loss on sales of securities——Other9761,0542,7172,774Noninterest expense:Salaries and employee benefits9,7119,974Occupancy and equipment3,2333,214Merger expenses230—Other3,9543,01817,12816,206Income before income taxes4,2434,729Income tax expense487294Net income$3,756$4,435Share and Per Share Data:Weighted Average Common Shares22,625,11722,520,568Dilutive restricted stock units86,27073,827Dilutive weighted average common shares22,711,38722,594,395Basic EPS$0.17$0.20Diluted EPS0.170.20Cash Dividends Declared per share0.210.21FINANCIAL RATIOS(Unaudited)ROA0.37%0.42%ROE3.984.72Net Interest Margin1.911.79PROBLEM AND POTENTIAL PROBLEM LOANS AND ASSETS(Unaudited)3/31/202512/31/2024(dollars in thousands)Loans including modifications to borrowers experiencing financial difficulty:Modified and performing according to their modified terms$419$421Past due 30 through 89 days7,452270Past due 90 days or more and still accruing——Nonaccrual3,5103,22911,3813,920Other real estate owned——$11,381$3,920Allowance for credit losses$28,308$28,331Allowance for credit losses as a percentage of total loans0.89%0.88%Allowance for credit losses as a multiple of nonaccrual loans8.1x8.8xAVERAGE BALANCE SHEET, INTEREST RATES AND INTEREST DIFFERENTIAL(Unaudited)Three Months Ended March 31,20252024AverageInterest/AverageAverageInterest/Average(dollars in thousands)BalanceDividendsRateBalanceDividendsRateAssets:Interest-earning bank balances$28,537$3134.45%$55,117$7515.48%Investment securities:Taxable (1)568,1625,0613.56638,8576,2423.91Nontaxable (1) (2)151,7451,2103.19153,4171,2153.17Loans (1)3,185,77133,7854.243,243,44533,5434.14Total interest-earning assets3,934,21540,3694.104,090,83641,7514.08Allowance for credit losses(28,399)(28,947)Net interest-earning assets3,905,8164,061,889Cash and due from banks28,19731,703Premises and equipment, net28,91231,257Other assets130,528120,884$4,093,453$4,245,733Liabilities and Stockholders' Equity:Savings, NOW & money market deposits$1,572,10910,3182.66$1,534,08110,0832.64Time deposits612,7306,4034.24643,8546,9774.36Total interest-bearing deposits2,184,83916,7213.102,177,93517,0603.15Overnight advances6,322714.5518,8462635.61Other borrowings416,9444,5014.38504,2586,0124.80Total interest-bearing liabilities2,608,10521,2933.312,701,03923,3353.47Checking deposits1,067,8041,126,593Other liabilities35,26040,0143,711,1693,867,646Stockholders' equity382,284378,087$4,093,453$4,245,733Net interest income (2)$19,076$18,416Net interest spread (2)0.79%0.61%Net interest margin (2)1.91%1.79% (1)The average balances of loans include nonaccrual loans. The average balances of investment securities exclude unrealized gains and losses on available-for-sale securities.(2)Tax-equivalent basis. Interest income on a tax-equivalent basis includes the additional amount of interest income that would have been earned if the Corporation's investment in tax-exempt investment securities had been made in investment securities subject to federal income taxes yielding the same after-tax income. The tax-equivalent amount of $1.00 of nontaxable income was $1.27 for each period presented using the statutory federal income tax rate of 21%. For More Information Contact:Janet Verneuille, SEVP and CFO(516) 671-4900, Ext. 7462