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 months
ended March 31, 2017. In the highlights that follow, all
comparisons are of the current three-month period to the same
period last year.
FIRST QUARTER 2017
HIGHLIGHTS
- Net Income increased 18.9% to $9.1 million from $7.6
million
- EPS increased 8.6% to $.38 from $.35
- Cash Dividends Per Share increased 7.7% to $.14 from
$.13
- Total Assets exceeded $3.6 billion at quarter end,
increasing 11.5% since 3/31/16
- 15.4% growth in the average balance of
Loans
- 11.5% growth in the average balance of Total
Deposits
- 8.0% growth in the average balance of
Noninterest-Bearing Checking Deposits
- The Mortgage Loan Pipeline at quarter end remained
strong at $154 million
- The Credit Quality of the Bank’s loan and securities
portfolios remains excellent
Analysis of First Quarter
Earnings
Net income for the first quarter of 2017 was
$9.1 million, an increase of $1.4 million, or 18.9%, over the same
quarter last year. The increase is primarily attributable to
increases in net interest income of $3.0 million, or 14.3%, and
noninterest income of $366,000, partially offset by increases in
noninterest expense of $583,000, the provision for loan losses of
$535,000 and income tax expense of $761,000.
The increase in net interest income was
primarily driven by growth in average interest-earning assets of
$401.9 million, or 13.1%. Average interest-earning assets
grew with increases in the average balances of loans of $349.9
million, or 15.4%, and securities of $55.9 million, or 7.2%.
Although most of the loan growth occurred in mortgage loans,
commercial and industrial loans also grew with an increase in
average outstandings of $30.8 million, or 32.5%. The growth
in loans and securities was funded by growth in the average
balances of noninterest-bearing checking deposits of $62.0 million,
or 8.0%, interest-bearing deposits of $216.2 million, or 13.1%,
short-term borrowings of $102.0 million and stockholders’ equity of
$56.4 million. A substantial contributor to the growth in
deposits was new branch openings and a substantial contributor to
the growth in stockholders’ equity was $35.3 million of capital
raised in an underwritten public offering completed in May of last
year.
Net interest margin of 2.92% for the first
quarter of 2017 was essentially unchanged from 2.93% for the same
quarter of last year. The current level of net interest
margin reflects the low interest rate environment that has
persisted for an extended period of time. 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 increase in noninterest income of $366,000,
or 20.9%, is primarily attributable to increases in cash value
accretion on bank-owned life insurance of $116,000, service charges
on deposit accounts of $69,000, securities gains of $57,000,
Investment Management Division income of $46,000 and real estate
tax refunds of $33,000. Cash value accretion increased
because of purchases of bank-owned life insurance during the first
quarter of 2017 with an initial cash value of $25 million.
The increase in service charges on deposit accounts is due to
higher overdraft and maintenance and activity charges.
Securities gains of $57,000 in the current quarter resulted from a
deleveraging transaction involving the sale of approximately $40
million of available-for-sale mortgage-backed securities and use of
the resulting proceeds to pay down short-term borrowings. If
interest rates remain at current levels, this transaction will
reduce the Bank’s net interest income on a going forward
basis. However, it will improve the Bank’s Tier 1 leverage
capital ratio and, more importantly, reduces the Bank’s exposure to
increasing interest rates. Investment Management Division
income increased because of increases in assets under management
resulting principally from improved equity market conditions.
The increase in noninterest expense of $583,000,
or 4.7%, is primarily attributable to increases in salaries of
$346,000, or 6.2%, employee benefits expense of $140,000, or 8.4%,
occupancy and equipment expense of $144,000, or 6.1%, and legal and
consulting fees of $92,000. The impact of these items was
partially offset by decreases in FDIC insurance expense of $118,000
and computer and telecommunications expense of $93,000. 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 resulted primarily from
increases in incentive compensation cost of $99,000 and group
health insurance expense of $71,000, partially offset by a decrease
in retirement plan expense of $59,000. The increase in health
insurance expense resulted from increases in staff count and the
rates being charged by insurance carriers. The increase in
occupancy and equipment expense includes the operating costs of new
branches and increases in maintenance and repairs expense and the
cost of servicing equipment. The decrease in FDIC insurance
expense is attributable to lower FDIC assessment rates effective
July 1, 2016, partially offset by a growth-related increase in the
assessment base. The decrease in computer and
telecommunications expense reflects the cost savings arising from
renegotiation of the Bank’s data processing contract in the fourth
quarter of 2016 and the elimination of phone lines due to the
installation of a new phone system.
The increase in the provision for loan losses
for the first quarter of 2017 versus the same quarter last year is
largely due to more loan growth in the current quarter. Loans
grew $129.9 million in the first quarter of this year versus $61.0
million in the same quarter last year. The impact of loan
growth on the provision in each quarter was partially offset by
improved economic conditions and, in the first quarter of last
year, a reduction in historical loss rates.
The $761,000 increase in income tax expense is
mainly attributable to higher pre-tax earnings in the first quarter
of 2017 versus the same quarter last year and an increase in the
effective tax rate from 21.9% in the 2016 quarter to 24.2% in the
current quarter. The increase in the effective tax rate was
primarily due to a decline in the percentage of pre-tax book income
represented by income on tax-exempt securities and state taxes in
additional jurisdictions. The impact of these items on the
effective tax rate was partially offset by the tax benefit derived
from the first quarter 2017 purchase of bank owned life insurance
and the additional tax benefit derived in the current quarter from
the vesting and exercise of stock
awards.
In the fourth quarter of 2016, the Corporation
adopted Accounting Standards Update (“ASU”) 2016-09 “Improvements
to Employee Share-Based Payment Accounting.” Earnings for the
first quarter of 2016 were adjusted retroactively to reflect the
adoption of the ASU effective as of January 1, 2016. The ASU
increased net income in the first quarters of 2017 and 2016 through
credits to income tax expense by $285,000 and $205,000,
respectively.
Analysis of Earnings – First Quarter 2017
Versus Fourth Quarter 2016
Net income for the first quarter of 2017
increased $1.6 million, or 20.8%, over $7.5 million earned in the
fourth quarter of last year. The increase is primarily
attributable to an increase in net interest income of $1.2 million
and a decrease in the provision for loan losses of $1.2
million. The positive impact on earnings of these items was
partially offset by an increase in income tax expense of $863,000.
The increase in net interest income occurred for
substantially the same reasons discussed above with respect to the
first quarter periods. The decrease in the provision for loan
losses was primarily attributable to lower net chargeoffs, a
smaller increase in specific reserves on loans individually deemed
to be impaired and an improvement in economic conditions, partially
offset by more loan growth. The increase in income tax
expense was mainly attributable to higher pre-tax earnings in the
current quarter and an increase in the effective tax rate largely
caused by a decline in the percentage of pre-tax book income
represented by income on tax-exempt securities.
Asset Quality
The Bank’s allowance for loan losses to total
loans decreased 3 basis points from 1.18% at year-end 2016 to 1.15%
at March 31, 2017. The decrease is primarily due to
adjustments to certain qualitative factors to reflect improved
economic conditions. The provision for loan losses was
$788,000 and $253,000 in the first quarters of 2017 and 2016,
respectively. The amount of the provision in each quarter was
driven mainly by loan growth, offset by improved economic
conditions and, in the first quarter of 2016, further offset by a
reduction in the historical loss component of the allowance for
loan losses.
The credit quality of the Bank’s loan portfolio
remains excellent. Nonaccrual loans amounted to $2.1 million,
or .08% of total loans outstanding, at March 31, 2017, compared to
$2.6 million, or .10%, at December 31, 2016. The decrease was
primarily attributable to two loans accounted for as troubled debt
restructurings being returned to an accrual status based on the
demonstrated ability of the borrowers to service their debt.
Troubled debt restructurings amounted to $1.5 million, or .05% of
total loans outstanding at March 31, 2017. Of the troubled
debt restructurings, $1.2 million are performing in accordance with
their modified terms and $286,000 are nonaccrual and included in
the aforementioned amount of nonaccrual loans. Loans past due
30 through 89 days amounted to $1.9 million, or .07% of total loans
outstanding, at March 31, 2017, compared to $1.1 million, or .04%,
at December 31, 2016. Management does not believe that the
increase in loans past due 30 through 89 days is indicative of a
deterioration in the overall credit quality of the Bank’s loan
portfolio.
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 58% 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 8.8%, 14.9%, 14.9% and 16.2%,
respectively, at March 31, 2017. The strength of the
Corporation’s balance sheet positions the Corporation for continued
growth in a measured and disciplined fashion.
During the first quarter of 2017, the
Corporation’s Board of Directors increased the amount of stock that
an individual can purchase on a quarterly basis under the stock
purchase component of the Dividend Reinvestment and Stock Purchase
Plan from $50,000 to $75,000. This change is intended to
provide additional capital that can be used to accommodate further
balance sheet growth.
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 on
Long Island and 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-seven branches in Nassau and Suffolk
Counties, Long Island and the boroughs of Queens, Brooklyn and
Manhattan. The Bank expects to open four more branches over
the next 12 months and continues to evaluate sites for further
branch expansion. One of the new branches will be in East
Setauket, Long Island, one will be in Queens and two will be in
Brooklyn. 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 development or
acquisition of fee-based businesses.
Challenges We Face
Since December 2015, there have been three
twenty-five basis point increases in the federal funds target rate
to its current level of .75% to 1%. Further increases are
expected and could exert upward pressure on non-maturity deposit
rates. At the same time, intermediate and long-term interest
rates remain relatively low resulting in suboptimal investing and
lending rates. Additionally, there is significant price
competition for loans in the Bank’s marketplace and little room for
the Bank to 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. The President has indicated that regulatory relief
and tax reform will be forthcoming, but the timing, magnitude and
impact of any such changes are yet to be determined. In the
current environment, 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, cyber security
and, as of late, predatory sales practices. 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) |
|
|
|
|
|
|
|
|
|
3/31/17 |
|
12/31/16 |
|
|
|
(dollars in thousands) |
|
|
|
|
|
Assets: |
|
|
|
|
|
Cash and
cash equivalents |
|
$ |
48,167 |
|
|
$ |
36,929 |
|
|
|
|
|
|
|
|
Investment securities: |
|
|
|
|
|
Held-to-maturity, at amortized cost (fair value of $10,296 and
$11,637) |
|
|
10,079 |
|
|
|
11,387 |
|
|
Available-for-sale, at fair value |
|
|
747,468 |
|
|
|
815,299 |
|
|
|
|
|
757,547 |
|
|
|
826,686 |
|
|
|
|
|
|
|
|
Loans: |
|
|
|
|
|
Commercial and industrial |
|
|
123,175 |
|
|
|
126,038 |
|
|
Secured
by real estate: |
|
|
|
|
|
Commercial mortgages |
|
|
1,093,387 |
|
|
|
1,085,198 |
|
|
Residential mortgages |
|
|
1,361,871 |
|
|
|
1,238,431 |
|
|
Home
equity lines |
|
|
87,642 |
|
|
|
86,461 |
|
|
Consumer
and other |
|
|
9,206 |
|
|
|
9,293 |
|
|
|
|
|
2,675,281 |
|
|
|
2,545,421 |
|
|
Allowance
for loan losses |
|
|
(30,843 |
) |
|
|
(30,057 |
) |
|
|
|
|
2,644,438 |
|
|
|
2,515,364 |
|
|
|
|
|
|
|
|
Restricted stock, at cost |
|
|
29,183 |
|
|
|
31,763 |
|
|
Bank
premises and equipment, net |
|
|
34,687 |
|
|
|
34,361 |
|
|
Bank-owned life insurance |
|
|
58,446 |
|
|
|
33,097 |
|
|
Pension
plan assets, net |
|
|
17,350 |
|
|
|
17,316 |
|
|
Other
assets |
|
|
17,212 |
|
|
|
14,804 |
|
|
|
|
$ |
3,607,030 |
|
|
$ |
3,510,320 |
|
|
|
|
|
|
|
|
Liabilities: |
|
|
|
|
|
Deposits: |
|
|
|
|
|
Checking |
|
$ |
839,131 |
|
|
$ |
808,311 |
|
|
Savings,
NOW and money market |
|
|
1,616,467 |
|
|
|
1,519,749 |
|
|
Time,
$100,000 and over |
|
|
187,143 |
|
|
|
178,918 |
|
|
Time,
other |
|
|
104,853 |
|
|
|
101,739 |
|
|
|
|
|
2,747,594 |
|
|
|
2,608,717 |
|
|
|
|
|
|
|
|
Short-term borrowings |
|
|
139,484 |
|
|
|
207,012 |
|
|
Long-term
debt |
|
|
390,212 |
|
|
|
379,212 |
|
|
Accrued
expenses and other liabilities |
|
|
12,143 |
|
|
|
9,481 |
|
|
Deferred
income taxes payable |
|
|
1,165 |
|
|
|
68 |
|
|
|
|
|
3,290,598 |
|
|
|
3,204,490 |
|
|
|
|
|
|
|
|
Stockholders' Equity: |
|
|
|
|
|
Common
stock, par value $.10 per share: |
|
|
|
|
|
Authorized, 40,000,000 shares |
|
|
|
|
|
Issued
and outstanding, 23,901,707 and 23,699,107 shares |
|
|
2,390 |
|
|
|
2,370 |
|
|
Surplus |
|
|
105,971 |
|
|
|
101,738 |
|
|
Retained
earnings |
|
|
209,051 |
|
|
|
203,326 |
|
|
|
|
|
317,412 |
|
|
|
307,434 |
|
|
Accumulated other comprehensive loss, net of tax |
|
|
(980 |
) |
|
|
(1,604 |
) |
|
|
|
|
316,432 |
|
|
|
305,830 |
|
|
|
|
$ |
3,607,030 |
|
|
$ |
3,510,320 |
|
|
|
|
|
|
|
|
CONSOLIDATED STATEMENTS OF
INCOME |
|
(Unaudited) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended |
|
|
|
|
|
|
|
3/31/17 |
|
3/31/16 |
|
|
|
|
|
|
|
(dollars in thousands) |
|
|
|
|
|
|
|
|
|
Interest and dividend
income: |
|
|
|
|
|
|
|
|
|
Loans |
|
|
|
|
|
$ |
22,919 |
|
$ |
19,814 |
|
Investment securities: |
|
|
|
|
|
|
|
|
|
Taxable |
|
|
|
|
|
|
2,202 |
|
|
1,890 |
|
Nontaxable |
|
|
|
|
|
|
3,377 |
|
|
3,403 |
|
|
|
|
|
|
|
|
28,498 |
|
|
25,107 |
|
|
|
|
|
|
|
|
|
|
|
Interest
expense: |
|
|
|
|
|
|
|
|
|
Savings,
NOW and money market deposits |
|
|
|
|
|
|
1,491 |
|
|
933 |
|
Time
deposits |
|
|
|
|
|
|
1,188 |
|
|
1,375 |
|
Short-term borrowings |
|
|
|
|
|
|
389 |
|
|
124 |
|
Long-term
debt |
|
|
|
|
|
|
1,770 |
|
|
1,974 |
|
|
|
|
|
|
|
|
4,838 |
|
|
4,406 |
|
Net
interest income |
|
|
|
|
|
|
23,660 |
|
|
20,701 |
|
Provision for loan
losses |
|
|
|
|
|
|
788 |
|
|
253 |
|
Net
interest income after provision for loan losses |
|
|
|
|
|
|
22,872 |
|
|
20,448 |
|
|
|
|
|
|
|
|
|
|
|
Noninterest
income: |
|
|
|
|
|
|
|
|
|
Investment Management Division income |
|
|
|
|
|
|
522 |
|
|
476 |
|
Service
charges on deposit accounts |
|
|
|
|
|
|
703 |
|
|
634 |
|
Net gains
on sales of securities |
|
|
|
|
|
|
57 |
|
|
- |
|
Other |
|
|
|
|
|
|
838 |
|
|
644 |
|
|
|
|
|
|
|
|
2,120 |
|
|
1,754 |
|
|
|
|
|
|
|
|
|
|
|
Noninterest
expense: |
|
|
|
|
|
|
|
|
|
Salaries |
|
|
|
|
|
|
5,924 |
|
|
5,578 |
|
Employee
benefits |
|
|
|
|
|
|
1,809 |
|
|
1,669 |
|
Occupancy
and equipment |
|
|
|
|
|
|
2,521 |
|
|
2,377 |
|
Other |
|
|
|
|
|
|
2,760 |
|
|
2,807 |
|
|
|
|
|
|
|
|
13,014 |
|
|
12,431 |
|
|
|
|
|
|
|
|
|
|
|
Income
before income taxes |
|
|
|
|
|
|
11,978 |
|
|
9,771 |
|
Income tax expense |
|
|
|
|
|
|
2,897 |
|
|
2,136 |
|
Net
Income |
|
|
|
|
|
$ |
9,081 |
|
$ |
7,635 |
|
|
|
|
|
|
|
|
|
|
|
EARNINGS PER
SHARE |
|
(Unaudited) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended |
|
|
|
|
|
3/31/17 |
|
3/31/16 |
|
|
|
|
|
(dollars in thousands, except |
|
|
|
|
|
per share data) |
|
|
|
|
|
|
|
|
|
Net income |
|
|
|
$ |
9,081 |
|
$ |
7,635 |
|
Income allocated to
participating securities |
|
|
|
|
34 |
|
|
32 |
|
Income
allocated to common stockholders |
|
|
|
$ |
9,047 |
|
$ |
7,603 |
|
|
|
|
|
|
|
|
|
Weighted average
shares: |
|
|
|
|
|
|
|
Common
shares |
|
|
|
|
23,858,640 |
|
|
21,275,579 |
|
Dilutive
stock options and restricted stock units |
|
|
|
|
264,305 |
|
|
274,683 |
|
|
|
|
|
|
24,122,945 |
|
|
21,550,262 |
|
|
|
|
|
|
|
|
|
Per share: |
|
|
|
|
|
|
|
Basic
EPS |
|
|
|
$.38 |
|
$.36 |
|
Diluted
EPS |
|
|
|
.38 |
|
.35 |
|
Cash
Dividends Declared |
|
|
|
.14 |
|
.13 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
FINANCIAL RATIOS |
|
(Unaudited) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
ROA |
|
|
|
|
1.02% |
|
.97% |
|
ROE |
|
|
|
|
11.75% |
|
|
11.94% |
|
Net
Interest Margin |
|
|
|
|
2.92% |
|
|
2.93% |
|
Dividend
Payout Ratio |
|
|
|
|
36.84% |
|
|
37.14% |
|
|
|
|
|
|
|
|
|
PROBLEM AND POTENTIAL
PROBLEM LOANS AND ASSETS |
|
(Unaudited) |
|
|
|
|
|
|
|
|
|
|
|
3/31/17 |
|
12/31/16 |
|
|
|
|
(dollars in thousands) |
|
|
|
|
|
|
|
|
|
Loans, excluding
troubled debt restructurings: |
|
|
|
|
|
|
Past due
30 through 89 days |
|
$ |
1,860 |
|
$ |
1,106 |
|
|
Past due
90 days or more and still accruing |
|
|
- |
|
|
621 |
|
|
Nonaccrual |
|
|
1,805 |
|
|
1,770 |
|
|
|
|
|
3,665 |
|
|
3,497 |
|
|
Troubled debt
restructurings: |
|
|
|
|
|
|
Performing according to their modified terms |
|
|
1,167 |
|
|
757 |
|
|
Past due
30 through 89 days |
|
|
- |
|
|
- |
|
|
Past due
90 days or more and still accruing |
|
|
- |
|
|
- |
|
|
Nonaccrual |
|
|
286 |
|
|
788 |
|
|
|
|
|
1,453 |
|
|
1,545 |
|
|
Total past due,
nonaccrual and restructured loans: |
|
|
|
|
|
|
Restructured and performing according to their modified terms |
|
|
1,167 |
|
|
757 |
|
|
Past due
30 through 89 days |
|
|
1,860 |
|
|
1,106 |
|
|
Past due
90 days or more and still accruing |
|
|
- |
|
|
621 |
|
|
Nonaccrual |
|
|
2,091 |
|
|
2,558 |
|
|
|
|
|
5,118 |
|
|
5,042 |
|
|
Other real estate
owned |
|
|
- |
|
|
- |
|
|
|
|
$ |
5,118 |
|
$ |
5,042 |
|
|
|
|
|
|
|
|
|
Allowance for loan
losses |
|
$ |
30,843 |
|
$ |
30,057 |
|
|
Allowance for loan
losses as a percentage of total loans |
|
|
1.15% |
|
|
1.18% |
|
|
Allowance for loan
losses as a multiple of nonaccrual loans |
|
14.8x |
|
11.8x |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
AVERAGE BALANCE SHEET, INTEREST RATES AND
INTEREST DIFFERENTIAL |
|
|
(Unaudited) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended March 31, |
|
|
|
|
2017 |
|
2016 |
|
|
|
|
Average |
|
Interest/ |
|
Average |
|
Average |
|
Interest/ |
|
Average |
|
|
|
|
Balance |
|
Dividends |
|
Rate |
|
Balance |
|
Dividends |
|
Rate |
|
|
|
|
(dollars in thousands) |
|
|
Assets: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest-earning bank balances |
|
$ |
25,240 |
|
|
$ |
52 |
|
.84 |
% |
|
$ |
29,131 |
|
|
$ |
38 |
|
.52 |
% |
|
|
Investment securities: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Taxable |
|
|
381,352 |
|
|
|
2,150 |
|
2.26 |
|
|
|
324,428 |
|
|
|
1,852 |
|
2.28 |
|
|
|
Nontaxable (1) |
|
|
454,957 |
|
|
|
5,195 |
|
4.57 |
|
|
|
455,961 |
|
|
|
5,235 |
|
4.59 |
|
|
|
Loans
(1) |
|
|
2,618,352 |
|
|
|
22,922 |
|
3.50 |
|
|
|
2,268,449 |
|
|
|
19,817 |
|
3.49 |
|
|
|
Total
interest-earning assets |
|
|
3,479,901 |
|
|
|
30,319 |
|
3.49 |
|
|
|
3,077,969 |
|
|
|
26,942 |
|
3.50 |
|
|
|
Allowance for loan losses |
|
|
(30,703 |
) |
|
|
|
|
|
|
|
(27,703 |
) |
|
|
|
|
|
|
|
Net
interest-earning assets |
|
|
3,449,198 |
|
|
|
|
|
|
|
|
3,050,266 |
|
|
|
|
|
|
|
|
Cash and
due from banks |
|
|
31,892 |
|
|
|
|
|
|
|
|
30,230 |
|
|
|
|
|
|
|
|
Premises
and equipment, net |
|
|
34,589 |
|
|
|
|
|
|
|
|
30,557 |
|
|
|
|
|
|
|
|
Other
assets |
|
|
79,281 |
|
|
|
|
|
|
|
|
57,938 |
|
|
|
|
|
|
|
|
|
|
$ |
3,594,960 |
|
|
|
|
|
|
|
$ |
3,168,991 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Liabilities and Stockholders' Equity: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Savings, NOW & money market deposits |
$ |
1,579,338 |
|
|
|
1,491 |
|
.38 |
|
|
$ |
1,336,350 |
|
|
|
933 |
|
.28 |
|
|
|
Time
deposits |
|
|
282,749 |
|
|
|
1,188 |
|
1.70 |
|
|
|
309,577 |
|
|
|
1,375 |
|
1.79 |
|
|
|
Total
interest-bearing deposits |
|
|
1,862,087 |
|
|
|
2,679 |
|
.58 |
|
|
|
1,645,927 |
|
|
|
2,308 |
|
.56 |
|
|
|
Short-term borrowings |
|
|
194,189 |
|
|
|
389 |
|
.81 |
|
|
|
92,208 |
|
|
|
124 |
|
.54 |
|
|
|
Long-term debt |
|
|
380,621 |
|
|
|
1,770 |
|
1.89 |
|
|
|
382,470 |
|
|
|
1,974 |
|
2.08 |
|
|
|
Total
interest-bearing liabilities |
|
|
2,436,897 |
|
|
|
4,838 |
|
.81 |
|
|
|
2,120,605 |
|
|
|
4,406 |
|
.84 |
|
|
|
Checking
deposits |
|
|
836,519 |
|
|
|
|
|
|
|
|
774,549 |
|
|
|
|
|
|
|
|
Other
liabilities |
|
|
8,068 |
|
|
|
|
|
|
|
|
16,741 |
|
|
|
|
|
|
|
|
|
|
|
3,281,484 |
|
|
|
|
|
|
|
|
2,911,895 |
|
|
|
|
|
|
|
|
Stockholders' equity |
|
|
313,476 |
|
|
|
|
|
|
|
|
257,096 |
|
|
|
|
|
|
|
|
|
|
$ |
3,594,960 |
|
|
|
|
|
|
|
$ |
3,168,991 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net
interest income (1) |
|
|
|
$ |
25,481 |
|
|
|
|
|
|
$ |
22,536 |
|
|
|
|
|
Net
interest spread (1) |
|
|
|
|
|
2.68 |
% |
|
|
|
|
|
2.66 |
% |
|
|
Net
interest margin (1) |
|
|
|
|
|
2.92 |
% |
|
|
|
|
|
2.93 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(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 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, 2017. The Form 10-Q will be available through
the Bank’s website at www.fnbli.com on or about May 10, 2017,
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
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