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
six months ended June 30, 2016. In the highlights that
follow, all comparisons are of the current three or six month
period to the same period last year unless indicated otherwise.
SECOND QUARTER HIGHLIGHTS
- Net Income increased 21.4% to $7.6 million from $6.3
million
- EPS increased 13.6% to $.50 from $.44
- Cash Dividends Per Share increased 5.3% to $.20 from
$.19
- Raised $35.3 million of Capital in a Public Offering to
support continued growth
- The Mortgage Loan Pipeline at quarter end was strong at
$170 million
- The Credit Quality of the Bank’s loan and securities
portfolios remains excellent
SIX MONTH HIGHLIGHTS
- Net Income increased 17.9% to $15.1 million from $12.8
million
- EPS increased 13.3% to $1.02 from $.90
- Cash Dividends Per Share increased 5.3% to $.40 from
$.38
- Tangible Book Value Per Share increased 10.3% to $19.59
from $17.76 at year end 2015
- 21.4% growth in the average balance of
Loans
- 19.6% growth in the average balance of Total
Deposits
- 13.3% growth in the average balance of
Noninterest-Bearing Checking Deposits
- 14.2% growth in average Stockholders’
Equity
Analysis of Earnings – Six Months Ended
June 30, 2016
Net income for the first six months of 2016 was
$15.1 million, an increase of $2.3 million, or 17.9%, over the same
period last year. The increase is primarily attributable to
an increase in net interest income of $5.7 million, or 15.6%, and a
decrease in the provision for loan losses of $961,000. The
impact of these items was partially offset by increases in
noninterest expense, before debt extinguishment costs, of $3.4
million and income tax expense of $678,000 and a decrease in
noninterest income, before securities gains, of
$265,000.
The increase in net interest income was
primarily driven by growth in average interest-earning assets of
$423.3 million, or 15.6%. Average interest-earning assets
grew mostly because of increases in the average balances of loans
of $402.5 million, or 21.4%, and nontaxable securities of $24.9
million, or 5.7%, partially offset by a decrease in the average
balance of taxable securities of $26.7 million, or 7.2%.
While most of the loan growth occurred in mortgage loans,
commercial and industrial loans also grew partially because of the
Bank’s small business credit scored loan initiative. The growth in
loans and nontaxable securities was primarily funded by growth in
the average balances of noninterest-bearing checking deposits of
$90.9 million, or 13.3%, and interest-bearing deposits of $322.3
million, or 22.7%.
Intermediate and long-term interest rates are
significantly lower now than they were at year-end 2015 and 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. Despite the downward pressure that these
factors exert on net interest income, the Bank’s net interest
margin of 2.91% for the first six months of 2016 was only down 3
basis points from the same period last year. This is because
a significant portion of the Bank’s loan portfolio was originated
in a low rate environment at yields not significantly different
than those available in 2015 and thus far in 2016.
The decrease in the provision for loan losses
for the current six month period versus the same period last year
is largely due to lesser loan growth, the absence of an increase in
specific reserves, a decrease in historical loss rates and net
recoveries on loans previously charged off.
The increase in noninterest expense, before debt
extinguishment costs, of $3.4 million, or 15.6%, is primarily
attributable to increases in salaries of $1.0 million, or 10.3%,
employee benefits expense of $710,000, or 25.9%, consulting expense
of $765,000, computer and telecommunications expense of $386,000
and marketing expense of $173,000. 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 largely due to an increase in group health insurance
expense of $230,000 resulting from increases in staff count and the
rates being paid for group health insurance, higher incentive
compensation costs of $132,000 and an increase in pension expense
of $254,000. The increase in pension expense is primarily
attributable to the 2015 return on plan assets falling short of
expectation and an increase in the number of plan
participants. 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 related to changes in the
Corporation’s network and security systems.
The $265,000 decrease in noninterest income,
before securities gains, is primarily attributable to a $177,000
decrease in real estate tax refunds and a $91,000 sales tax refund
in the first quarter of 2015.
The $678,000 increase in income tax expense is
attributable to higher pre-tax earnings in the current six-month
period partially offset by additional New York State income tax
benefits derived from the Corporation’s captive REIT.
Analysis of Earnings – Second Quarter
2016 Versus Second Quarter 2015
Net income for the second quarter of 2016 was
$7.6 million, representing an increase of $1.3 million, or
21.4%, over $6.3 million earned in the second quarter of last
year. The increase is primarily attributable to an increase
in net interest income of $2.8 million and a decrease in the
provision for loan losses of $803,000. The positive impact of
these items was partially offset by increases in salaries of
$503,000, employee benefits expense of $404,000, consulting expense
of $766,000 and computer and telecommunications expense of
$258,000. The increases in net interest income, salaries, employee
benefits, consulting and computer and telecommunications expense
occurred for substantially the same reasons discussed above with
respect to the six-month periods. The decrease in the
provision for loan losses was largely due to lesser loan growth and
the absence of an increase in specific reserves in the current
quarter versus the same quarter last year.
Analysis of Earnings – Second Quarter
Versus First Quarter 2016
Net income for the second quarter of 2016
increased $190,000 over $7.4 million earned in the first
quarter. The increase was primarily attributable to an
increase in net interest income of $572,000 and decreases in
occupancy and equipment expense of $175,000 and provision for loan
losses of $114,000, partially offset by higher consulting expense
of $819,000. The increases in net interest income and
consulting expense occurred for substantially the same reasons
discussed above with respect to the six-month periods. The
decline in occupancy and equipment expense reflects lower equipment
maintenance and repair 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 June 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 $392,000 and $1.4 million in the first six months
of 2016 and 2015, respectively. The $392,000 provision in the
first half of 2016 is primarily attributable to loan growth
partially offset by improved economic conditions and the
aforementioned reduction in historical losses. The $1.4
million provision in the first half of 2015 was primarily
attributable to loan growth and the establishment of a $332,000
specific reserve on one loan deemed to be impaired, partially
offset by improved economic conditions.
The credit quality of the Bank’s loan portfolio
remains excellent. Nonaccrual loans amounted to $5.1 million,
or .22% of total loans outstanding, at June 30, 2016, compared to
$1.4 million, or .06%, at December 31, 2015. The increase in
nonaccrual loans is primarily attributable to two related mortgage
loans transferred to nonaccrual status, partially offset by loan
sales and paydowns. These two mortgage loans are current on
principal and interest payments and, based on new appraisals, have
loan-to-value ratios of less than 50%. Troubled debt
restructurings were essentially unchanged during the first half of
2016 amounting to $4.4 million, or .19% of total loans outstanding
at June 30, 2016. Of the troubled debt restructurings, $3.5
million are performing in accordance with their modified terms and
$860,000 are nonaccrual and included in the aforementioned amount
of nonaccrual loans. Loans past due 30 through 89 days
amounted to $1.3 million, or .06% of total loans outstanding, at
June 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 57% 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%, 14.9%, 14.9% and 16.1%,
respectively, at June 30, 2016. During the second quarter of 2016,
the Corporation raised $35.3 million of capital in a public
offering of 1.3 million shares of common stock. In addition, the
Bank completed a deleveraging transaction in April 2016 that
involved the sale of $40.3 million of mortgage securities at a gain
of $1,795,000 and prepayment of $30 million of long-term debt at a
cost of $1,756,000. The capital raise and, to a much lesser extent,
the deleveraging transaction and retained net income were the
primary drivers of a 100 basis point increase in the
Corporation’s Tier 1 leverage capital ratio during the second
quarter. The strength of the Corporation’s balance sheet
positions the Corporation for continued growth in a measured and
disciplined fashion.
On June 30, 2016, the Corporation increased the
per investor limitation on quarterly stock purchases under its
Dividend Reinvestment and Stock Purchase Plan from $20,000 to
$50,000. This change is expected to provide additional
capital that can be used to accommodate future 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,
particularly in the New York City boroughs of Queens and
Brooklyn. With respect to loan growth, the Bank plans to
continue to prudently manage concentration risk and further develop
its broker and correspondent relationships. All loans
originated through such relationships are underwritten by Bank
personnel. The Bank’s branch distribution system currently
consists of forty-four branches in Nassau and Suffolk Counties,
Long Island and the boroughs of Queens and Manhattan. The
Bank anticipates opening new branches in Bay Ridge, Brooklyn,
College Point, Queens and East Islip, Long Island during the next
twelve months and continues to evaluate sites for further branch
expansion. 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 for 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. These factors are exerting downward pressure on
revenues and upward pressure on required capital levels and the
cost of doing business.
|
|
CONSOLIDATED BALANCE SHEETS |
|
(Unaudited) |
|
|
|
|
|
|
|
|
|
6/30/16 |
|
12/31/15 |
|
|
|
(in thousands) |
|
|
|
|
|
Assets: |
|
|
|
|
|
Cash and cash equivalents |
|
$ |
51,026 |
|
|
$ |
39,635 |
|
|
|
|
|
|
|
|
Investment securities: |
|
|
|
|
|
Held-to-maturity, at amortized cost
(fair value of $12,637 and $14,910) |
|
|
12,206 |
|
|
|
14,371 |
|
|
Available-for-sale, at fair
value |
|
|
862,001 |
|
|
|
737,700 |
|
|
|
|
|
874,207 |
|
|
|
752,071 |
|
|
|
|
|
|
|
|
Loans held-for-sale |
|
|
- |
|
|
|
105 |
|
|
|
|
|
|
|
|
Loans: |
|
|
|
|
|
Commercial and industrial |
|
|
105,106 |
|
|
|
93,056 |
|
|
Secured by real estate: |
|
|
|
|
|
Commercial mortgages |
|
|
1,043,560 |
|
|
|
1,036,331 |
|
|
Residential mortgages |
|
|
1,110,977 |
|
|
|
1,025,215 |
|
|
Home equity lines |
|
|
87,971 |
|
|
|
87,848 |
|
|
Consumer and other |
|
|
5,998 |
|
|
|
5,733 |
|
|
|
|
|
2,353,612 |
|
|
|
2,248,183 |
|
|
Allowance for loan losses |
|
|
(27,677 |
) |
|
|
(27,256 |
) |
|
|
|
|
2,325,935 |
|
|
|
2,220,927 |
|
|
|
|
|
|
|
|
Restricted stock, at cost |
|
|
23,074 |
|
|
|
28,435 |
|
|
Bank premises and equipment,
net |
|
|
31,527 |
|
|
|
30,330 |
|
|
Bank-owned life insurance |
|
|
32,914 |
|
|
|
32,447 |
|
|
Pension plan assets, net |
|
|
14,451 |
|
|
|
14,337 |
|
|
Other assets |
|
|
14,154 |
|
|
|
12,056 |
|
|
|
|
$ |
3,367,288 |
|
|
$ |
3,130,343 |
|
|
Liabilities: |
|
|
|
|
|
Deposits: |
|
|
|
|
|
Checking |
|
$ |
765,392 |
|
|
$ |
777,994 |
|
|
Savings, NOW and money market |
|
|
1,562,740 |
|
|
|
1,195,968 |
|
|
Time, $100,000 and over |
|
|
190,606 |
|
|
|
198,147 |
|
|
Time, other |
|
|
106,117 |
|
|
|
112,566 |
|
|
|
|
|
2,624,855 |
|
|
|
2,284,675 |
|
|
|
|
|
|
|
|
Short-term borrowings |
|
|
57,666 |
|
|
|
211,502 |
|
|
Long-term debt |
|
|
359,212 |
|
|
|
365,712 |
|
|
Accrued expenses and other
liabilities |
|
|
9,497 |
|
|
|
12,313 |
|
|
Deferred income taxes payable |
|
|
10,406 |
|
|
|
5,205 |
|
|
|
|
|
3,061,636 |
|
|
|
2,879,407 |
|
|
Stockholders' Equity: |
|
|
|
|
|
Common stock, par value $.10 per
share: |
|
|
|
|
|
Authorized, 40,000,000 shares |
|
|
|
|
|
Issued and outstanding, 15,590,694
and 14,116,677 shares |
|
|
1,559 |
|
|
|
1,412 |
|
|
Surplus |
|
|
96,273 |
|
|
|
56,931 |
|
|
Retained earnings |
|
|
194,128 |
|
|
|
185,069 |
|
|
|
|
|
291,960 |
|
|
|
243,412 |
|
|
Accumulated other comprehensive
income, net of tax |
|
|
13,692 |
|
|
|
7,524 |
|
|
|
|
|
305,652 |
|
|
|
250,936 |
|
|
|
|
$ |
3,367,288 |
|
|
$ |
3,130,343 |
|
|
|
|
|
|
|
|
|
|
|
|
CONSOLIDATED STATEMENTS OF
INCOME |
|
(Unaudited) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Six Months Ended |
|
Three Months Ended |
|
|
|
6/30/16 |
|
6/30/15 |
|
6/30/16 |
|
6/30/15 |
|
|
|
(dollars in thousands) |
|
|
|
|
|
|
|
|
|
Interest and dividend
income: |
|
|
|
|
|
|
|
|
|
Loans |
|
$ |
40,055 |
|
|
$ |
33,691 |
|
|
$ |
20,241 |
|
|
$ |
17,140 |
|
|
Investment securities: |
|
|
|
|
|
|
|
|
|
Taxable |
|
|
3,910 |
|
|
|
4,242 |
|
|
|
2,020 |
|
|
|
2,124 |
|
|
Nontaxable |
|
|
6,823 |
|
|
|
6,792 |
|
|
|
3,420 |
|
|
|
3,403 |
|
|
|
|
|
50,788 |
|
|
|
44,725 |
|
|
|
25,681 |
|
|
|
22,667 |
|
|
Interest
expense: |
|
|
|
|
|
|
|
|
|
Savings, NOW and money market
deposits |
|
|
2,343 |
|
|
|
1,150 |
|
|
|
1,410 |
|
|
|
605 |
|
|
Time deposits |
|
|
2,674 |
|
|
|
3,070 |
|
|
|
1,299 |
|
|
|
1,489 |
|
|
Short-term borrowings |
|
|
131 |
|
|
|
94 |
|
|
|
7 |
|
|
|
13 |
|
|
Long-term debt |
|
|
3,666 |
|
|
|
4,111 |
|
|
|
1,692 |
|
|
|
2,066 |
|
|
|
|
|
8,814 |
|
|
|
8,425 |
|
|
|
4,408 |
|
|
|
4,173 |
|
|
Net interest income |
|
|
41,974 |
|
|
|
36,300 |
|
|
|
21,273 |
|
|
|
18,494 |
|
|
Provision for loan
losses |
|
|
392 |
|
|
|
1,353 |
|
|
|
139 |
|
|
|
942 |
|
|
Net interest income after provision
for loan losses |
|
|
41,582 |
|
|
|
34,947 |
|
|
|
21,134 |
|
|
|
17,552 |
|
|
|
|
|
|
|
|
|
|
|
|
Noninterest
income: |
|
|
|
|
|
|
|
|
|
Investment Management Division
income |
|
|
990 |
|
|
|
1,039 |
|
|
|
514 |
|
|
|
532 |
|
|
Service charges on deposit
accounts |
|
|
1,290 |
|
|
|
1,325 |
|
|
|
656 |
|
|
|
669 |
|
|
Net gains on sales of
securities |
|
|
1,844 |
|
|
|
1,133 |
|
|
|
1,844 |
|
|
|
1,133 |
|
|
Other |
|
|
1,361 |
|
|
|
1,542 |
|
|
|
717 |
|
|
|
749 |
|
|
|
|
|
5,485 |
|
|
|
5,039 |
|
|
|
3,731 |
|
|
|
3,083 |
|
|
Noninterest
expense: |
|
|
|
|
|
|
|
|
|
Salaries |
|
|
11,049 |
|
|
|
10,020 |
|
|
|
5,471 |
|
|
|
4,968 |
|
|
Employee benefits |
|
|
3,449 |
|
|
|
2,739 |
|
|
|
1,780 |
|
|
|
1,376 |
|
|
Occupancy and equipment |
|
|
4,579 |
|
|
|
4,569 |
|
|
|
2,202 |
|
|
|
2,111 |
|
|
Debt extinguishment |
|
|
1,756 |
|
|
|
1,084 |
|
|
|
1,756 |
|
|
|
1,084 |
|
|
Other |
|
|
6,470 |
|
|
|
4,777 |
|
|
|
3,663 |
|
|
|
2,503 |
|
|
|
|
|
27,303 |
|
|
|
23,189 |
|
|
|
14,872 |
|
|
|
12,042 |
|
|
|
|
|
|
|
|
|
|
|
|
Income before income taxes |
|
|
19,764 |
|
|
|
16,797 |
|
|
|
9,993 |
|
|
|
8,593 |
|
|
Income tax expense |
|
|
4,714 |
|
|
|
4,036 |
|
|
|
2,373 |
|
|
|
2,317 |
|
|
Net Income |
|
$ |
15,050 |
|
|
$ |
12,761 |
|
|
$ |
7,620 |
|
|
$ |
6,276 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Per Share Data: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic EPS |
|
$ |
1.03 |
|
|
$ |
.91 |
|
|
$ |
.51 |
|
|
$ |
.45 |
|
|
Diluted EPS |
|
$ |
1.02 |
|
|
$ |
.90 |
|
|
$ |
.50 |
|
|
$ |
.44 |
|
|
Cash Dividends Declared |
|
$ |
.40 |
|
|
$ |
.38 |
|
|
$ |
.20 |
|
|
$ |
.19 |
|
|
|
|
|
|
|
|
|
|
|
|
FINANCIAL RATIOS |
|
(Unaudited) |
|
|
|
|
|
|
|
|
|
|
|
ROA |
|
|
.94 |
% |
|
|
.92 |
% |
|
|
.93 |
% |
|
|
.88 |
% |
|
ROE |
|
|
11.16 |
% |
|
|
10.83 |
% |
|
|
10.74 |
% |
|
|
10.53 |
% |
|
Net
Interest Margin |
|
|
2.91 |
% |
|
|
2.94 |
% |
|
|
2.89 |
% |
|
|
2.96 |
% |
|
Dividend
Payout Ratio |
|
|
39.22 |
% |
|
|
42.22 |
% |
|
|
40.00 |
% |
|
|
43.18 |
% |
|
|
|
|
|
|
|
|
|
|
|
PROBLEM AND POTENTIAL
PROBLEM LOANS AND ASSETS |
|
(Unaudited) |
|
|
|
|
|
|
|
|
|
|
|
6/30/16 |
|
12/31/15 |
|
|
|
|
(in thousands) |
|
|
|
|
|
|
|
|
|
Loans, excluding
troubled debt restructurings: |
|
|
|
|
|
|
Past due 30 through 89
days |
|
$ |
1,331 |
|
|
$ |
1,003 |
|
|
|
Past due 90 days or more and still
accruing |
|
|
- |
|
|
|
- |
|
|
|
Nonaccrual (includes $105,000 in
loans held-for-sale at 12/31/15) |
|
|
4,217 |
|
|
|
535 |
|
|
|
|
|
|
5,548 |
|
|
|
1,538 |
|
|
|
Troubled debt
restructurings: |
|
|
|
|
|
|
Performing according to their
modified terms |
|
|
3,530 |
|
|
|
3,581 |
|
|
|
Past due 30 through 89
days |
|
|
- |
|
|
|
- |
|
|
|
Past due 90 days or more and still
accruing |
|
|
- |
|
|
|
- |
|
|
|
Nonaccrual |
|
|
860 |
|
|
|
900 |
|
|
|
|
|
|
4,390 |
|
|
|
4,481 |
|
|
|
Total past due,
nonaccrual and restructured loans: |
|
|
|
|
|
|
Restructured and performing
according to their modified terms |
|
|
3,530 |
|
|
|
3,581 |
|
|
|
Past due 30 through 89
days |
|
|
1,331 |
|
|
|
1,003 |
|
|
|
Past due 90 days or more and still
accruing |
|
|
- |
|
|
|
- |
|
|
|
Nonaccrual |
|
|
5,077 |
|
|
|
1,435 |
|
|
|
|
|
|
9,938 |
|
|
|
6,019 |
|
|
|
Other real estate
owned |
|
|
- |
|
|
|
- |
|
|
|
|
|
$ |
9,938 |
|
|
$ |
6,019 |
|
|
|
|
|
|
|
|
|
|
Allowance for loan
losses |
|
$ |
27,677 |
|
|
$ |
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 |
|
|
5.5x |
|
|
|
19.0x |
|
|
|
|
|
|
|
|
|
|
AVERAGE BALANCE SHEET, INTEREST RATES AND
INTEREST DIFFERENTIAL |
|
|
(Unaudited) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Six Months Ended June 30, |
|
|
|
|
2016 |
|
2015 |
|
|
|
|
Average |
|
Interest/ |
|
Average |
|
Average |
|
Interest/ |
|
Average |
|
|
|
|
Balance |
|
Dividends |
|
Rate |
|
Balance |
|
Dividends |
|
Rate |
|
|
Assets: |
|
(in thousands) |
|
|
Interest-earning bank balances |
|
$ |
43,242 |
|
|
$ |
111 |
|
|
.52 |
% |
$ |
20,662 |
|
|
$ |
25 |
|
|
.24 |
% |
|
|
Investment securities: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Taxable |
|
|
345,785 |
|
|
|
3,799 |
|
|
2.20 |
|
|
|
372,462 |
|
|
|
4,217 |
|
|
2.26 |
|
|
|
Nontaxable (1) |
|
|
460,309 |
|
|
|
10,497 |
|
|
4.56 |
|
|
|
435,445 |
|
|
|
10,449 |
|
|
4.80 |
|
|
|
Loans
(1) |
|
|
2,287,335 |
|
|
|
40,062 |
|
|
3.50 |
|
|
|
1,884,834 |
|
|
|
33,699 |
|
|
3.58 |
|
|
|
Total
interest-earning assets |
|
|
3,136,671 |
|
|
|
54,469 |
|
|
3.47 |
|
|
|
2,713,403 |
|
|
|
48,390 |
|
|
3.57 |
|
|
|
Allowance for loan losses |
|
|
(27,711 |
) |
|
|
|
|
|
|
|
(23,704 |
) |
|
|
|
|
|
|
|
Net
interest-earning assets |
|
|
3,108,960 |
|
|
|
|
|
|
|
|
2,689,699 |
|
|
|
|
|
|
|
|
Cash and
due from banks |
|
|
30,165 |
|
|
|
|
|
|
|
|
28,404 |
|
|
|
|
|
|
|
|
Premises
and equipment, net |
|
|
30,958 |
|
|
|
|
|
|
|
|
28,839 |
|
|
|
|
|
|
|
|
Other
assets |
|
|
58,558 |
|
|
|
|
|
|
|
|
59,065 |
|
|
|
|
|
|
|
|
|
|
$ |
3,228,641 |
|
|
|
|
|
|
|
$ |
2,806,007 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Liabilities and Stockholders' Equity: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Savings, NOW & money market deposits |
$ |
1,436,975 |
|
|
|
2,343 |
|
|
.33 |
|
|
$ |
1,097,823 |
|
|
|
1,150 |
|
|
.21 |
|
|
|
Time
deposits |
|
|
306,485 |
|
|
|
2,674 |
|
|
1.75 |
|
|
|
323,352 |
|
|
|
3,070 |
|
|
1.91 |
|
|
|
Total
interest-bearing deposits |
|
|
1,743,460 |
|
|
|
5,017 |
|
|
.58 |
|
|
|
1,421,175 |
|
|
|
4,220 |
|
|
.60 |
|
|
|
Short-term borrowings |
|
|
53,690 |
|
|
|
131 |
|
|
.49 |
|
|
|
61,307 |
|
|
|
94 |
|
|
.31 |
|
|
|
Long-term debt |
|
|
371,500 |
|
|
|
3,666 |
|
|
1.98 |
|
|
|
380,832 |
|
|
|
4,111 |
|
|
2.18 |
|
|
|
Total
interest-bearing liabilities |
|
|
2,168,650 |
|
|
|
8,814 |
|
|
.82 |
|
|
|
1,863,314 |
|
|
|
8,425 |
|
|
.91 |
|
|
|
Checking
deposits |
|
|
774,043 |
|
|
|
|
|
|
|
|
683,160 |
|
|
|
|
|
|
|
|
Other
liabilities |
|
|
14,707 |
|
|
|
|
|
|
|
|
22,020 |
|
|
|
|
|
|
|
|
|
|
|
2,957,400 |
|
|
|
|
|
|
|
|
2,568,494 |
|
|
|
|
|
|
|
|
Stockholders' equity |
|
|
271,241 |
|
|
|
|
|
|
|
|
237,513 |
|
|
|
|
|
|
|
|
|
|
$ |
3,228,641 |
|
|
|
|
|
|
|
$ |
2,806,007 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net
interest income (1) |
|
|
|
$ |
45,655 |
|
|
|
|
|
|
|
$ |
39,965 |
|
|
|
|
|
|
Net
interest spread (1) |
|
|
|
|
|
2.65 |
% |
|
|
|
|
|
2.66 |
% |
|
|
Net
interest margin (1) |
|
|
|
|
|
2.91 |
% |
|
|
|
|
|
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.
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 June 30, 2016. The Form 10-Q will be available through
the Bank’s website at www.fnbli.com on or about August 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
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