The First of Long Island Corporation (Nasdaq:FLIC), the parent
company of The First National Bank of Long Island, reported
increases in net income and earnings per share for the three and
nine months ended September 30, 2016. In the highlights that
follow, all comparisons are of the current three or nine month
period to the same period last year unless otherwise indicated.
THIRD QUARTER HIGHLIGHTS
- Net Income increased 23.0% to $8.0 million from $6.5
million
- EPS increased 8.7% to $.50 from $.46
- Cash Dividends Per Share increased 5.0% to $.21 from
$.20
- Tangible Book Value Per Share increased 12.4% to $19.77
from $17.59 at 9/30/15
- The Mortgage Loan Pipeline at quarter end remained
strong at $173 million
- The Credit Quality of the Bank’s loan and securities
portfolios remains excellent
NINE MONTH HIGHLIGHTS
- Net Income increased 19.7% to $23.1 million from $19.3
million
- EPS increased 11.8% to $1.52 from $1.36
- Cash Dividends Per Share increased 5.2% to $.61 from
$.58
- 20.4% growth in the average balance of
Loans
- 18.4% growth in the average balance of Total
Deposits
- 10.0% growth in the average balance of
Noninterest-Bearing Checking Deposits
Analysis of Earnings – Nine Months Ended
September 30, 2016
Net income for the first nine months of 2016 was
$23.1 million, an increase of $3.8 million, or 19.7%, over the same
period last year. The increase is primarily attributable to
an increase in net interest income of $8.4 million, or 15.3%, and a
decrease in the provision for loan losses of $892,000. The
impact of these items was partially offset by increases in
noninterest expense, before debt extinguishment costs, of $4.0
million and income tax expense of $1.5 million.
The increase in net interest income was
primarily driven by growth in average interest-earning assets of
$442.4 million, or 16.1%. Average interest-earning assets
grew mostly because of increases in the average balances of loans
of $393.3 million, or 20.4%, and securities of $34.8 million, or
4.4%. While most of the loan growth occurred in mortgage
loans, commercial and industrial loans also grew. The growth
in loans and securities was primarily funded by growth in the
average balances of noninterest-bearing checking deposits of $71.1
million, or 10.0%, interest-bearing deposits of $328.3 million, or
22.5%, and stockholders' equity of $45.5 million, or
19.1%.
Intermediate and long-term interest rates have
been low and volatile for an extended period of time. In a
low interest rate environment: (1) loans are sometimes originated
and investments are sometimes made at yields lower than existing
portfolio yields; (2) some loans prepay in full resulting in the
immediate writeoff of deferred costs; (3) prepayment speeds on
mortgage securities can be elevated resulting in accelerated
amortization of purchase premiums; (4) the benefit of no cost
funding in the form of noninterest-bearing checking deposits and
capital is suppressed; and (5) the Bank’s ability to reduce deposit
rates diminishes. These factors, partially offset by an
elevated level of prepayment penalty income caused by the low rate
environment, contributed to a 5 basis point decline in the Bank’s
net interest margin from 2.94% for the first nine months of 2015 to
2.89% for the current nine month period. Despite the decline
in net interest margin, the Bank’s net interest income continues to
increase as a result of the aforementioned growth in
interest-earning assets. On a going forward basis, if
available yields for loans and securities, prepayment penalties and
the cost of deposits and borrowings remain at current levels, net
interest margin is not expected to meaningfully decline. This
expectation is based on the fact that significant portions of the
Bank’s mortgage loan and securities portfolios were originated or
purchased in a low rate environment at yields similar to those
currently available.
The decrease in the provision for loan losses
for the current nine month period versus the same period last year
is largely due to lesser loan growth and a decline in historical
loss rates. Also contributing to the decrease was a decline
in specific reserves during the current nine month period versus an
increase during the same period last year.
The increase in noninterest expense, before debt
extinguishment costs, of $4.0 million, or 12.0%, is primarily
attributable to increases in salaries of $1.3 million, or 8.6%,
employee benefits expense of $801,000, or 18.4%, consulting expense
of $712,000, computer and telecommunications expense of $408,000,
occupancy and equipment expense of $284,000 and marketing expense
of $206,000. The increase in salaries is primarily due to new
branch openings, additions to staff in the back office, higher
stock-based compensation expense and normal annual salary
adjustments. The increase in employee benefits expense is
partially due to a $309,000 increase in group health insurance
expense resulting from increases in staff count and the rates being
charged by insurance carriers. Employee benefits expense also
increased because of increases in pension expense and incentive
compensation costs of $380,000 and $118,000, respectively. Pension
expense increased largely because the 2015 return on plan assets
fell short of expectation and the number of plan participants
increased. The increase in consulting expense is due to a
one-time charge of $800,000 in the second quarter of 2016 for
advisory services relating to a vendor contract
renegotiation. The Corporation expects that the cost savings
negotiated by the consultant over the life of the contract will far
exceed the one-time consulting charge. The increase in
computer and telecommunications expense is mainly attributable to a
growth-related increase in telecommunications capacity and one-time
expenses of approximately $126,000 in the second quarter of
2016. The increase in occupancy and equipment expense
includes the operating costs of new branches and a growth-related
increase in depreciation on the Bank’s facilities and
equipment.
The $1.5 million increase in income tax expense
is attributable to higher pre-tax earnings in the current
nine-month period partially offset by additional New York State
income tax benefits derived from the Corporation’s captive REIT and
the inclusion of a one-time charge of $402,000 in the same period
last year caused by changes in New York City tax law.
Analysis of Earnings – Third Quarter 2016
Versus Third Quarter 2015
Net income for the third quarter of 2016 was
$8.0 million, representing an increase of $1.5 million, or 23.0%,
over $6.5 million earned in the third quarter of last year.
The increase is primarily attributable to an increase in net
interest income of $2.8 million, partially offset by increases of
$274,000 in both salaries and occupancy and equipment expense and a
$792,000 increase in income tax expense. The increases in net
interest income, salaries and occupancy and equipment expense
occurred for substantially the same reasons discussed above with
respect to the nine month periods. Excluding the
aforementioned one-time charge of $402,000, income tax expense also
increased for the same reasons discussed with respect to the nine
month periods.
Analysis of Earnings – Third Quarter
Versus Second Quarter 2016
Net income for the third quarter of 2016
increased $391,000 over $7.6 million earned in the second
quarter. The majority of the increase was attributable to an
increase in net interest income of $418,000 and one-time consulting
and other charges of $926,000 in the second quarter, offset by an
increase in the provision for loan losses of $979,000. The
increase in net interest income occurred for substantially the same
reasons discussed above with respect to the nine-month
period. The provision for loan losses increased as a result
of higher loan growth in the third quarter as compared to the
second quarter and adjustments to qualitative factors, such as
concentrations of credit, used in determining the allowance for
loan losses. The impact of these items on the provision was
partially offset by a decrease in historical loss rates and a
reduction in specific reserves. Income tax expense increased
primarily because of higher pretax income in the third quarter.
Securities gains and debt extinguishment costs were lower in
the third quarter because the second quarter included a
deleveraging transaction that involved the sale of securities at a
gain and the prepayment of long-term debt with resulting debt
extinguishment costs.
Asset Quality
The Bank’s allowance for loan losses to total
loans decreased 3 basis points from 1.21% at year-end 2015 to 1.18%
at September 30, 2016. The decrease is primarily due to
improved economic conditions and a reduction in the historical loss
component of the allowance for loan losses. The provision for
loan losses was $1.5 million and $2.4 million in the first nine
months of 2016 and 2015, respectively. The $1.5 million
provision in the first nine months of 2016 is primarily
attributable to loan growth and adjustments to qualitative factors
used in determining the allowance for loan losses. The impact
of these items was partially offset by a decrease in historical
loss rates and a reduction in specific reserves. The $2.4
million provision in the first nine months of 2015 was primarily
attributable to loan growth and an increase in specific reserves,
partially offset by improved economic conditions.
The credit quality of the Bank’s loan portfolio
remains excellent. Nonaccrual loans at September 30, 2016
were essentially unchanged from December 31, 2015, amounting to
$1.4 million, or .06% of total loans outstanding, as of each
date. During the third quarter of 2016, nonaccrual loans
declined $3.7 million from $5.1 million at June 30, 2016. The
decrease was primarily attributable to the payoff of two related
mortgage loans. Troubled debt restructurings at September 30,
2016 amounted to $2.5 million, or .10% of total loans
outstanding. Of the troubled debt restructurings, $1.6
million are performing in accordance with their modified terms and
$844,000 are nonaccrual and included in the aforementioned amount
of nonaccrual loans. Troubled debt restructurings declined
$1.9 million during the third quarter from $4.4 million at June 30,
2016. The decrease was attributable to the payoff of two
loans to one borrower, partially offset by one loan that was
restructured in a troubled debt restructuring during the current
quarter. Loans past due 30 through 89 days amounted to $1.5
million, or .06% of total loans outstanding, at September 30, 2016,
compared to $1.0 million, or .04%, at December 31, 2015.
The credit quality of the Bank’s securities
portfolio also remains excellent. The Bank’s mortgage
securities are backed by mortgages underwritten on conventional
terms, with 61% of these securities being full faith and credit
obligations of the U.S. government and the balance being
obligations of U.S. government sponsored entities. The
remainder of the Bank’s securities portfolio principally consists
of high quality, general obligation municipal securities rated AA
or better by major rating agencies. In selecting municipal
securities for purchase, the Bank uses credit agency ratings for
screening purposes only and then performs its own credit
analysis. On an ongoing basis, the Bank periodically assesses
the credit strength of the municipal securities in its portfolio
and makes decisions to hold or sell based on such assessments.
Capital
The Corporation’s Tier 1 leverage, Common Equity
Tier 1 risk-based, Tier 1 risk-based and Total risk-based capital
ratios were approximately 8.9%, 14.8%, 14.8% and 16.0%,
respectively, at September 30, 2016. The strength of the
Corporation’s balance sheet positions the Corporation for continued
growth in a measured and disciplined fashion.
On October 27, 2016, the Corporation announced a
3-for-2 stock split. The stock split will be effected through
a 50% stock dividend. The additional shares that will be
issued as a result of the stock split will be distributed on
November 28, 2016 to shareholders of record on November 10,
2016.
Key Strategic Initiatives
Key strategic initiatives will continue to
include loan and deposit growth through effective relationship
management, targeted solicitation efforts, new product offerings
and continued expansion of the Bank’s branch distribution system,
particularly in the New York City boroughs of Queens and
Brooklyn. With respect to loan growth, the Bank will continue
to prudently manage concentration risk and further develop its
broker and correspondent relationships. Small business credit
scored loans, equipment finance loans and SBA loans, along with the
Bank’s traditional commercial and industrial loan products, will be
originated to diversify the Bank’s loan portfolio and help mitigate
the impact of the low rate environment on the Bank’s earnings.
The Bank’s growing branch distribution system
currently consists of forty-five branches in Nassau and Suffolk
Counties, Long Island and the boroughs of Queens, Brooklyn and
Manhattan. The Bank expects to open two more branches in the
next six months and continues to evaluate sites for further branch
expansion. One of the new branches will be in College Point, Queens
and the other in East Islip, Long Island. In addition to loan
and deposit growth, management is also focused on growing
noninterest income from existing and potential new sources, which
may include the acquisition of fee-based businesses.
Challenges We Face
The federal funds target rate increased by
twenty-five basis points in December 2015. Further increases
could exert upward pressure on non-maturity deposit rates.
Intermediate and long-term interest rates are impacted by national
and global forces and have been low and volatile for an extended
period of time. They declined significantly since year-end
2015 and could remain low or go lower in the foreseeable
future. This could cause investing and lending rates to be
suboptimal. There is significant price competition for loans
in the Bank’s marketplace and little room for the Bank to further
reduce its deposit rates. These factors will make it
difficult to improve net interest margin and could result in a
decline in net interest margin from its current level and inhibit
earnings growth for the foreseeable future.
The banking industry continues to be faced with
new and complex regulatory requirements and enhanced supervisory
oversight. Banking regulators are increasingly concerned
about, among other things, growth, commercial real estate
concentrations, underwriting of commercial real estate and
commercial and industrial loans, capital levels and cyber
security. Regulatory requirements and enhanced oversight are
exerting downward pressure on revenues and upward pressure on
required capital levels and the cost of doing business.
CONSOLIDATED BALANCE SHEETS |
|
(Unaudited) |
|
|
|
|
|
|
|
|
|
9/30/16 |
|
12/31/15 |
|
|
|
(dollars in thousands) |
|
|
|
|
|
Assets: |
|
|
|
|
|
Cash and cash equivalents |
|
$ |
48,858 |
|
|
$ |
39,635 |
|
|
|
|
|
|
|
|
Investment securities: |
|
|
|
|
|
Held-to-maturity, at amortized cost
(fair value of $12,273 and $14,910) |
|
|
11,915 |
|
|
|
14,371 |
|
|
Available-for-sale, at fair
value |
|
|
837,734 |
|
|
|
737,700 |
|
|
|
|
|
849,649 |
|
|
|
752,071 |
|
|
|
|
|
|
|
|
Loans held-for-sale |
|
|
- |
|
|
|
105 |
|
|
|
|
|
|
|
|
Loans: |
|
|
|
|
|
Commercial and industrial |
|
|
117,973 |
|
|
|
93,056 |
|
|
Secured by real estate: |
|
|
|
|
|
Commercial mortgages |
|
|
1,054,330 |
|
|
|
1,036,331 |
|
|
Residential mortgages |
|
|
1,180,646 |
|
|
|
1,025,215 |
|
|
Home equity lines |
|
|
85,984 |
|
|
|
87,848 |
|
|
Consumer and other |
|
|
5,976 |
|
|
|
5,733 |
|
|
|
|
|
2,444,909 |
|
|
|
2,248,183 |
|
|
Allowance for loan losses |
|
|
(28,759 |
) |
|
|
(27,256 |
) |
|
|
|
|
2,416,150 |
|
|
|
2,220,927 |
|
|
|
|
|
|
|
|
Restricted stock, at cost |
|
|
27,106 |
|
|
|
28,435 |
|
|
Bank premises and equipment,
net |
|
|
32,003 |
|
|
|
30,330 |
|
|
Bank-owned life insurance |
|
|
32,877 |
|
|
|
32,447 |
|
|
Pension plan assets, net |
|
|
14,507 |
|
|
|
14,337 |
|
|
Other assets |
|
|
13,345 |
|
|
|
12,056 |
|
|
|
|
$ |
3,434,495 |
|
|
$ |
3,130,343 |
|
|
Liabilities: |
|
|
|
|
|
Deposits: |
|
|
|
|
|
Checking |
|
$ |
789,644 |
|
|
$ |
777,994 |
|
|
Savings, NOW and money market |
|
|
1,542,366 |
|
|
|
1,195,968 |
|
|
Time, $100,000 and over |
|
|
189,093 |
|
|
|
198,147 |
|
|
Time, other |
|
|
103,781 |
|
|
|
112,566 |
|
|
|
|
|
2,624,884 |
|
|
|
2,284,675 |
|
|
|
|
|
|
|
|
Short-term borrowings |
|
|
101,522 |
|
|
|
211,502 |
|
|
Long-term debt |
|
|
379,212 |
|
|
|
365,712 |
|
|
Accrued expenses and other
liabilities |
|
|
10,668 |
|
|
|
12,313 |
|
|
Deferred income taxes payable |
|
|
7,835 |
|
|
|
5,205 |
|
|
|
|
|
3,124,121 |
|
|
|
2,879,407 |
|
|
Stockholders' Equity: |
|
|
|
|
|
Common stock, par value $.10 per
share: |
|
|
|
|
|
Authorized, 40,000,000 shares |
|
|
|
|
|
Issued and outstanding, 15,685,967
and 14,116,677 shares |
|
|
1,569 |
|
|
|
1,412 |
|
|
Surplus |
|
|
99,265 |
|
|
|
56,931 |
|
|
Retained earnings |
|
|
198,834 |
|
|
|
185,069 |
|
|
|
|
|
299,668 |
|
|
|
243,412 |
|
|
Accumulated other comprehensive
income, net of tax |
|
|
10,706 |
|
|
|
7,524 |
|
|
|
|
|
310,374 |
|
|
|
250,936 |
|
|
|
|
$ |
3,434,495 |
|
|
$ |
3,130,343 |
|
|
|
|
|
|
|
|
CONSOLIDATED STATEMENTS OF
INCOME |
|
(Unaudited) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Nine Months Ended |
|
Three Months Ended |
|
|
|
9/30/16 |
|
9/30/15 |
|
9/30/16 |
|
9/30/15 |
|
|
|
(dollars in thousands) |
|
|
|
|
|
|
|
|
|
Interest and dividend
income: |
|
|
|
|
|
|
|
|
|
Loans |
|
$ |
60,844 |
|
|
$ |
51,328 |
|
|
$ |
20,789 |
|
|
$ |
17,637 |
|
|
Investment securities: |
|
|
|
|
|
|
|
|
|
Taxable |
|
|
5,920 |
|
|
|
6,116 |
|
|
|
2,010 |
|
|
|
1,874 |
|
|
Nontaxable |
|
|
10,256 |
|
|
|
10,184 |
|
|
|
3,433 |
|
|
|
3,392 |
|
|
|
|
|
77,020 |
|
|
|
67,628 |
|
|
|
26,232 |
|
|
|
22,903 |
|
|
Interest
expense: |
|
|
|
|
|
|
|
|
|
Savings, NOW and money market
deposits |
|
|
3,833 |
|
|
|
1,840 |
|
|
|
1,490 |
|
|
|
690 |
|
|
Time deposits |
|
|
3,910 |
|
|
|
4,565 |
|
|
|
1,236 |
|
|
|
1,495 |
|
|
Short-term borrowings |
|
|
154 |
|
|
|
113 |
|
|
|
23 |
|
|
|
19 |
|
|
Long-term debt |
|
|
5,458 |
|
|
|
5,877 |
|
|
|
1,792 |
|
|
|
1,766 |
|
|
|
|
|
13,355 |
|
|
|
12,395 |
|
|
|
4,541 |
|
|
|
3,970 |
|
|
Net interest income |
|
|
63,665 |
|
|
|
55,233 |
|
|
|
21,691 |
|
|
|
18,933 |
|
|
Provision for loan
losses |
|
|
1,510 |
|
|
|
2,402 |
|
|
|
1,118 |
|
|
|
1,049 |
|
|
Net interest income after provision
for loan losses |
|
|
62,155 |
|
|
|
52,831 |
|
|
|
20,573 |
|
|
|
17,884 |
|
|
|
|
|
|
|
|
|
|
|
|
Noninterest
income: |
|
|
|
|
|
|
|
|
|
Investment Management
Division income |
|
|
1,498 |
|
|
|
1,548 |
|
|
|
508 |
|
|
|
509 |
|
|
Service charges on deposit
accounts |
|
|
1,979 |
|
|
|
1,981 |
|
|
|
689 |
|
|
|
656 |
|
|
Net gains on sales of
securities |
|
|
1,868 |
|
|
|
1,133 |
|
|
|
24 |
|
|
|
- |
|
|
Other |
|
|
2,154 |
|
|
|
2,196 |
|
|
|
793 |
|
|
|
654 |
|
|
|
|
|
7,499 |
|
|
|
6,858 |
|
|
|
2,014 |
|
|
|
1,819 |
|
|
Noninterest
expense: |
|
|
|
|
|
|
|
|
|
Salaries |
|
|
16,437 |
|
|
|
15,134 |
|
|
|
5,388 |
|
|
|
5,114 |
|
|
Employee benefits |
|
|
5,148 |
|
|
|
4,347 |
|
|
|
1,699 |
|
|
|
1,608 |
|
|
Occupancy and equipment |
|
|
6,923 |
|
|
|
6,639 |
|
|
|
2,344 |
|
|
|
2,070 |
|
|
Debt extinguishment |
|
|
1,756 |
|
|
|
1,084 |
|
|
|
- |
|
|
|
- |
|
|
Other |
|
|
9,013 |
|
|
|
7,367 |
|
|
|
2,543 |
|
|
|
2,590 |
|
|
|
|
|
39,277 |
|
|
|
34,571 |
|
|
|
11,974 |
|
|
|
11,382 |
|
|
|
|
|
|
|
|
|
|
|
|
Income before income taxes |
|
|
30,377 |
|
|
|
25,118 |
|
|
|
10,613 |
|
|
|
8,321 |
|
|
Income tax expense |
|
|
7,316 |
|
|
|
5,846 |
|
|
|
2,602 |
|
|
|
1,810 |
|
|
Net Income |
|
$ |
23,061 |
|
|
$ |
19,272 |
|
|
$ |
8,011 |
|
|
$ |
6,511 |
|
|
|
|
|
|
|
|
|
|
|
|
Per Share Data: |
|
|
|
|
|
|
|
|
|
Basic EPS |
|
$ |
1.54 |
|
|
$ |
1.38 |
|
|
$ |
.51 |
|
|
$ |
.46 |
|
|
Diluted EPS |
|
$ |
1.52 |
|
|
$ |
1.36 |
|
|
$ |
.50 |
|
|
$ |
.46 |
|
|
Cash Dividends Declared |
|
$ |
.61 |
|
|
$ |
.58 |
|
|
$ |
.21 |
|
|
$ |
.20 |
|
|
|
|
|
|
|
|
|
|
|
|
FINANCIAL RATIOS |
|
(Unaudited) |
|
|
|
|
|
|
|
|
|
|
|
ROA |
|
.94% |
|
.91% |
|
.94% |
|
.89% |
|
ROE |
|
|
10.84 |
% |
|
|
10.79 |
% |
|
|
10.28 |
% |
|
|
10.71 |
% |
|
Net
Interest Margin |
|
|
2.89 |
% |
|
|
2.94 |
% |
|
|
2.86 |
% |
|
|
2.95 |
% |
|
Dividend
Payout Ratio |
|
|
40.13 |
% |
|
|
42.65 |
% |
|
|
42.00 |
% |
|
|
43.48 |
% |
|
|
|
|
|
|
|
|
|
|
|
PROBLEM AND POTENTIAL
PROBLEM LOANS AND ASSETS |
|
(Unaudited) |
|
|
|
|
|
|
|
|
|
|
|
9/30/16 |
|
12/31/15 |
|
|
|
|
(dollars in thousands) |
|
|
|
|
|
|
|
|
|
Loans, excluding
troubled debt restructurings: |
|
|
|
|
|
|
Past due 30 through 89
days |
|
$ |
1,486 |
|
|
$ |
1,003 |
|
|
|
Past due 90 days or more and still
accruing |
|
|
- |
|
|
|
- |
|
|
|
Nonaccrual (includes $105,000 in
loans held-for-sale at 12/31/15) |
|
|
572 |
|
|
|
535 |
|
|
|
|
|
|
2,058 |
|
|
|
1,538 |
|
|
|
Troubled debt
restructurings: |
|
|
|
|
|
|
Performing according to their
modified terms |
|
|
1,634 |
|
|
|
3,581 |
|
|
|
Past due 30 through 89
days |
|
|
- |
|
|
|
- |
|
|
|
Past due 90 days or more and still
accruing |
|
|
- |
|
|
|
- |
|
|
|
Nonaccrual |
|
|
844 |
|
|
|
900 |
|
|
|
|
|
|
2,478 |
|
|
|
4,481 |
|
|
|
Total past due,
nonaccrual and restructured loans: |
|
|
|
|
|
|
Restructured and performing
according to their modified terms |
|
|
1,634 |
|
|
|
3,581 |
|
|
|
Past due 30 through 89
days |
|
|
1,486 |
|
|
|
1,003 |
|
|
|
Past due 90 days or more and still
accruing |
|
|
- |
|
|
|
- |
|
|
|
Nonaccrual |
|
|
1,416 |
|
|
|
1,435 |
|
|
|
|
|
|
4,536 |
|
|
|
6,019 |
|
|
|
Other real estate
owned |
|
|
- |
|
|
|
- |
|
|
|
|
|
$ |
4,536 |
|
|
$ |
6,019 |
|
|
|
|
|
|
|
|
|
|
Allowance for loan
losses |
|
$ |
28,759 |
|
|
$ |
27,256 |
|
|
|
Allowance for loan
losses as a percentage of total loans |
|
|
1.18 |
% |
|
|
1.21 |
% |
|
|
Allowance for loan
losses as a multiple of nonaccrual loans |
|
|
20.3 |
x |
|
|
19.0 |
x |
|
|
|
|
|
|
|
|
|
AVERAGE BALANCE SHEET, INTEREST RATES AND
INTEREST DIFFERENTIAL |
|
|
(Unaudited) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Nine Months Ended September 30, |
|
|
|
|
2016 |
|
2015 |
|
|
|
|
Average |
|
Interest/ |
|
Average |
|
Average |
|
Interest/ |
|
Average |
|
|
|
|
Balance |
|
Dividends |
|
Rate |
|
Balance |
|
Dividends |
|
Rate |
|
|
|
|
(dollars in thousands) |
|
|
Assets: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest-earning bank balances |
|
$ |
36,434 |
|
|
$ |
140 |
|
|
.51 |
% |
$ |
22,099 |
|
|
$ |
42 |
|
|
.25 |
% |
|
Investment securities: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Taxable |
|
|
367,569 |
|
|
|
5,780 |
|
|
2.10 |
|
|
|
360,919 |
|
|
|
6,074 |
|
|
2.24 |
|
|
|
Nontaxable (1) |
|
|
465,054 |
|
|
|
15,779 |
|
|
4.52 |
|
|
|
436,941 |
|
|
|
15,668 |
|
|
4.78 |
|
|
|
Loans
(1) |
|
|
2,322,461 |
|
|
|
60,854 |
|
|
3.49 |
|
|
|
1,929,159 |
|
|
|
51,339 |
|
|
3.55 |
|
|
|
Total
interest-earning assets |
|
|
3,191,518 |
|
|
|
82,553 |
|
|
3.45 |
|
|
|
2,749,118 |
|
|
|
73,123 |
|
|
3.55 |
|
|
|
Allowance for loan losses |
|
|
(27,860 |
) |
|
|
|
|
|
|
|
(24,052 |
) |
|
|
|
|
|
|
|
Net
interest-earning assets |
|
|
3,163,658 |
|
|
|
|
|
|
|
|
2,725,066 |
|
|
|
|
|
|
|
|
Cash and
due from banks |
|
|
30,504 |
|
|
|
|
|
|
|
|
28,723 |
|
|
|
|
|
|
|
|
Premises
and equipment, net |
|
|
31,236 |
|
|
|
|
|
|
|
|
28,720 |
|
|
|
|
|
|
|
|
Other
assets |
|
|
58,876 |
|
|
|
|
|
|
|
|
59,100 |
|
|
|
|
|
|
|
|
|
|
$ |
3,284,274 |
|
|
|
|
|
|
|
$ |
2,841,609 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Liabilities and Stockholders' Equity: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Savings, NOW & money market deposits |
$ |
1,483,338 |
|
|
|
3,833 |
|
|
.35 |
|
|
$ |
1,134,741 |
|
|
|
1,840 |
|
|
.22 |
|
|
|
Time
deposits |
|
|
302,001 |
|
|
|
3,910 |
|
|
1.73 |
|
|
|
322,312 |
|
|
|
4,565 |
|
|
1.89 |
|
|
|
Total
interest-bearing deposits |
|
|
1,785,339 |
|
|
|
7,743 |
|
|
.58 |
|
|
|
1,457,053 |
|
|
|
6,405 |
|
|
.59 |
|
|
|
Short-term borrowings |
|
|
44,193 |
|
|
|
154 |
|
|
.47 |
|
|
|
50,705 |
|
|
|
113 |
|
|
.30 |
|
|
|
Long-term debt |
|
|
373,798 |
|
|
|
5,458 |
|
|
1.95 |
|
|
|
363,937 |
|
|
|
5,877 |
|
|
2.16 |
|
|
|
Total
interest-bearing liabilities |
|
|
2,203,330 |
|
|
|
13,355 |
|
|
.81 |
|
|
|
1,871,695 |
|
|
|
12,395 |
|
|
.89 |
|
|
|
Checking
deposits |
|
|
780,980 |
|
|
|
|
|
|
|
|
709,896 |
|
|
|
|
|
|
|
|
Other
liabilities |
|
|
15,668 |
|
|
|
|
|
|
|
|
21,250 |
|
|
|
|
|
|
|
|
|
|
|
2,999,978 |
|
|
|
|
|
|
|
|
2,602,841 |
|
|
|
|
|
|
|
|
Stockholders' equity |
|
|
284,296 |
|
|
|
|
|
|
|
|
238,768 |
|
|
|
|
|
|
|
|
|
|
$ |
3,284,274 |
|
|
|
|
|
|
|
$ |
2,841,609 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net
interest income (1) |
|
|
|
$ |
69,198 |
|
|
|
|
|
|
|
$ |
60,728 |
|
|
|
|
|
|
Net
interest spread (1) |
|
|
|
|
|
2.64 |
% |
|
|
|
|
|
2.66 |
% |
|
|
Net
interest margin (1) |
|
|
|
|
|
2.89 |
% |
|
|
|
|
|
2.94 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) 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 loans and investment securities had been made in
loans and investment securities subject to Federal income taxes
yielding the same after-tax income. The tax-equivalent amount
of $1.00 of nontaxable income was $1.54 for each period presented
using the statutory Federal income tax rate of 35%.
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”. 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; monetary and fiscal policies of
the federal government; changes in interest rates; deposit flows
and the cost of funds; demands 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. The forward-looking statements are made as of the
date of this report, 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 September 30, 2016. The Form 10-Q will be available
through the Bank’s website at www.fnbli.com on or about
November 9, 2016, after it is electronically filed with the
Securities and Exchange Commission (“SEC”). Our SEC filings
are also available on the SEC’s website at www.sec.gov. You
may also read and copy any document we file with the SEC at the
SEC’s public reference room at 100 F Street, N.E., Room 1580,
Washington, DC 20549. You should call 1-800-SEC-0330 for more
information on the public reference room.
For More Information Contact:
Mark D. Curtis, SEVP, CFO and Treasurer
(516) 671-4900, Ext. 7413
First of Long Island (NASDAQ:FLIC)
Historical Stock Chart
From Mar 2024 to Apr 2024
First of Long Island (NASDAQ:FLIC)
Historical Stock Chart
From Apr 2023 to Apr 2024