The First of Long Island Corporation (Nasdaq: FLIC), the parent
company of The First National Bank of Long Island, reported net
income and earnings per share for the three months ended March 31,
2020. In the highlights that follow, all comparisons are of
the current three-month period to the same period last year unless
otherwise indicated.
FIRST QUARTER 2020
HIGHLIGHTS
- Net Income and EPS were $9.1 million and $.38,
respectively, versus $10.8 million and $.43
- Net interest margin was 2.62% versus 2.57% for the
prior quarter
- Cash Dividends Per Share increased 5.9% to $.18 from
$.17
- ROA and ROE were .90% and 9.41%, respectively, compared
to 1.03% and 11.30%
- Repurchased 261,700 shares during the quarter at a cost
of $5.9 million
- Effective Tax Rate was 15.2% versus 17.7%
- Operating expenses remain under tight control and
revenue enhancement initiatives are producing positive
results
- The Bank is helping customers through the pandemic by
providing over $400 million in loan modifications and $175 million
in SBA Paycheck Protection loans beginning 2Q’20
Analysis of First Quarter
Earnings
Net income for the first quarter of 2020 was
$9.1 million, a decrease of $1.7 million, or 15.6%, versus the same
quarter last year. The decrease is due to a decline in net
interest income of $424,000, or 1.7%, and an increase in the
provision for credit losses of $2.8 million. These items were
partially offset by an increase in noninterest income of $574,000,
or 23.5%, and decreases in noninterest expense of $277,000, or
1.8%, and income tax expense of $695,000.
The decline in net interest income occurred as
yield curve flattening and inversion led management to slow loan
and overall balance sheet growth. The average balance of
loans decreased $102.2 million, or 3.1%, and the average balance of
investment securities declined $70.2 million, or 8.9%. Also
contributing to the decline in net interest income was a decrease
in the average yield on the investment securities portfolio mainly
due to prepayments and lower yields available on purchases.
Partially offsetting these items was an increase in the yield on
loans, from 3.61% for the first quarter of 2019 to 3.66% for the
current quarter, and decreases in the average balance and rate on
short-term borrowings of $178.3 million and 62 basis points,
respectively. The 5 basis point increase in the yield on
loans is primarily attributable to higher prepayment and late
fees. The average balance of short-term borrowings decreased
as overnight and three-month Federal Home Loan Bank advances were
replaced with brokered deposits and long-term debt.
Net interest margin for the first quarter of
2020 was 2.62% as compared to 2.56% and 2.57% for the 2019 first
and fourth quarters, respectively. Excluding the impact of
prepayment and late fees in each period, net interest margin for
the current quarter was up 3 basis points versus the first quarter
of 2019 and unchanged from the fourth quarter of 2019. Due to
the COVID-19 pandemic, loan origination volume has almost ceased,
except for SBA Paycheck Protection Program (“PPP”)
loans.
Management remains proactive in addressing the
downward pressure on earnings caused by the low interest rate
environment, flat yield curve and, more recently, the substantial
economic impact arising from the COVID-19 pandemic. Steps
taken by management include:
- Reduction in non-maturity and time deposit rates at the end of
March 2020
- Implementing revenue enhancement opportunities to increase the
level of noninterest income
- Maintaining tight control over operating expenses
- Supporting customers during the COVID-19 pandemic through loan
modifications and SBA PPP lending
The Corporation adopted ASU 2016-13 “Measurement of Credit
Losses on Financial Instruments” (“CECL”) on January 1, 2020.
The provision for credit losses of $2.4 million for the current
quarter on a CECL basis increased $2.8 million when compared to the
($457,000) credit provision for the first quarter of 2019 on an
incurred loss basis. The $2.4 million provision for the
current quarter was mainly attributable to the COVID-19
pandemic. Also impacting the provision for the current
quarter were net charge-offs of $430,000 offset by a decrease in
outstanding loans of $64.9 million. The ($457,000) credit
provision for the 2019 quarter was driven by a decline in
outstanding loans, a reduction in historical loss rates and a
reduction in the level of watch list loans.
The increase in noninterest income of $574,000
is primarily attributable to increases in service charges on
deposit accounts of $282,000 and the non-service cost components of
the Bank’s defined benefit pension plan of $261,000. The
growth in service charges on deposit accounts is mainly
attributable to the positive impact of revenue enhancement
initiatives which commenced in 2019. It is anticipated that
the COVID-19 pandemic may negatively affect service charges on
deposit accounts for the remainder of the pandemic.
The decrease in noninterest expense of $277,000
was mainly attributable to declines in stock-based compensation
expense of $1.0 million and FDIC insurance expense of
$306,000. These items were partially offset by an increase in
salaries and certain employee benefits expense of $448,000 and an
expense credit of $309,000 in the first quarter of 2019 related to
incentive compensation. The decline in stock-based
compensation expense was mainly attributable to fewer awards
granted in the current quarter due to executive retirements in
2019. The decline in FDIC insurance expense was due to an
assessment credit received by the Bank during the current
quarter. The increase in salaries and certain employee
benefits expense was primarily attributable to market-related
salary adjustments due to higher minimum wage laws, annual merit
raises and the hiring of middle market lenders, partially offset by
executive retirements at the end of 2019. Management is
committed to maintaining tight control over operating costs to
mitigate the downward pressure on earnings arising from the current
interest rate and economic environment.
Income tax expense decreased $695,000 and the
effective tax rate declined from 17.7% to 15.2% when comparing the
first quarter of 2019 to the current quarter. The decrease is
primarily attributable to an increase in the percentage of pre-tax
income derived from tax-exempt municipal securities and BOLI in
2020. The decrease in income tax expense also reflects lower
pre-tax earnings in the current quarter as compared to the 2019
quarter.
Analysis of Earnings – First Quarter 2020
Versus Fourth Quarter 2019
Net income for the first quarter of 2020
declined $39,000, or .4%, from $9.2 million earned in the fourth
quarter of last year. The decrease is primarily attributable
to an increase in the provision for credit losses of $2.6 million
and higher retirement plan and incentive compensation expenses of
$331,000 and $224,000, respectively. Partially offsetting
these items were an increase in net interest income of $400,000 due
to higher prepayment and late fees, a decrease in marketing expense
of $179,000 and executive severance and retirement charges of $2.6
million in the fourth quarter of 2019. The increase in the
provision for credit losses reflects the utilization of the CECL
methodology in the current quarter as discussed previously
including, among other things, the estimated impact the COVID-19
pandemic will have on qualitative factors, current and forecasted
economic conditions and net charge-offs. The effective tax
rate was unchanged at 15.2% in each quarter.
Serving Customers
The Bank is focused on serving customers during
the COVID-19 pandemic through loan modifications and lending under
the SBA’s PPP. The Bank stands ready to make credit available
to customers and the communities in which we operate and provide
customers with access to their deposits through our branch network,
ATMs and digital offerings.
Loan modifications are evaluated on a
case-by-case basis generally for borrowers that are current as to
principal and interest. Loan modifications completed or in
process through April 28, 2020 include the following, none of which
were completed as of March 31, 2020:
Type of Modification |
Number of Loans |
Type of Loans |
Balance at 4/28/20 |
3 Month Deferral of Principal |
280 |
Mainly Small Business Loans |
$31 million |
3 Month Deferral of Principal and Interest |
27210822 |
Residential Mortgages Commercial MortgagesMainly C&I Loans |
$159 million$205 million$9 million |
Modified loans present an elevated level of
credit risk to the Bank because they involve borrowers experiencing
business or financial disruption as a result of the COVID-19
pandemic.
The Bank’s participation in the SBA’s PPP for
small business customers began in the second quarter of 2020 and
includes approximately 700 loans totaling $175 million as of April
28, 2020. PPP loans have a 1% rate of interest and 2-year
term with fees paid to the Bank by the SBA ranging from 1% to 5% of
each loan depending on the loan amount. Fees will be
amortized as a yield adjustment. PPP loans will receive
favorable regulatory capital treatment and are 100% guaranteed by
the SBA.
We believe that our strong capital and liquidity
positions, branch network, lending and deposit platforms and focus
on internal controls and cybersecurity provide a solid foundation
for serving customers during these challenging times. As an
essential business, the Bank has continued to operate during the
COVID-19 pandemic. The Bank has implemented alternate work
arrangements as needed, such as work-from-home with remote access,
and has instituted a series of operating and safety protocols
through a pandemic committee to ensure business continuity and
protect the health of customers and employees. The Bank is
monitoring its liquidity position daily, which remains strong and
stable, and maintains prudent loan underwriting standards. We
maintain open communication with customers and continue to process
daily transactions such as deposits and fund transfers. Our
branches continue to serve customers, with varied service
arrangements for health and safety reasons such as drive up-only,
teller window-only, phone-only, ATM-only or a combination of these
as circumstances warrant.
Asset Quality
The credit quality of the Bank’s loan and
securities portfolios remains strong. Nonaccrual loans,
troubled debt restructurings and loans past due 30 through 89 days
all remain at low levels.
The Bank’s allowance for credit losses to total
loans (reserve coverage ratio) was 1.09% at March 31, 2020 as
compared to .92% at December 31, 2019. The increase includes
9 basis points from the January 1, 2020 implementation of the CECL
methodology and 8 basis points from the aforementioned first
quarter 2020 provision for credit losses, net charge-offs and
decrease in outstanding loans. The 9 basis point increase
from the implementation of CECL reflects an increase in the
allowance for credit losses on January 1, 2020 of $2.9 million
mainly due to higher historical losses on a CECL basis as compared
to the previous incurred loss methodology and the impact on the
allowance of reasonable and supportable forecasts required under
CECL.
Capital
The Corporation adopted the Community Bank
Leverage Ratio framework during the first quarter of 2020. The
Corporation’s Leverage Ratio was approximately 9.5% at March 31,
2020. The strength of the Corporation’s balance sheet
positions the Corporation for lending and growth.
The decrease in book value per share from $16.26
at December 31, 2019 to $15.80 at March 31, 2020 was mainly due to
dividends declared during the quarter, common stock repurchases,
the adoption of CECL and a decrease of $8.8 million in Accumulated
Other Comprehensive Income (Loss) (“AOCI”). The decline in
AOCI was primarily due to a decrease in the fair value of the
Bank’s Corporate Bond portfolio due to widening of credit spreads
at quarter-end.
During the first quarter of 2020, the
Corporation repurchased 261,700 shares of its common stock at a
total cost of $5.9 million. Total repurchases completed since
the commencement of the program amount to 2,025,100 shares at a
cost of $45.6 million. Management does not expect to
repurchase any additional shares in 2020 due to the economic
uncertainty surrounding the COVID-19 pandemic and banking
regulations regarding the amount of dividends a Bank can declare
relative to its retained net income for the current year combined
with the previous two calendar years.
Key Initiatives and Challenges We
Face
The Bank’s strategy is focused on increasing
shareholder value through loan and deposit growth, the maintenance
of strong credit quality, a strong efficiency ratio and an optimal
amount of capital. Key strategic initiatives in 2020 include
enhancing our brand, highlighting our digital offerings, refining
our branch strategy, building on our relationship banking business
and growing fee income. All of these initiatives are
currently being negatively impacted by the COVID-19 pandemic.
Notwithstanding the actions taken by management
to mitigate the impact on earnings of the current interest rate
environment, net interest income, net interest margin, earnings and
the Corporation’s profitability metrics remain under
pressure. These items could be negatively impacted by yield
curve inversion, low yields available on new loans and securities
and deteriorating economic conditions caused by the COVID-19
pandemic.
The COVID-19 pandemic creates substantial
challenges for the Bank and its customers. Normal business
activity and commerce have been significantly disrupted across the
country including in the New York City metropolitan area which is
the main market that the Bank serves. The disruptions
include, among other things, widespread government mandated closure
of nonessential businesses, school closures and stay-at-home orders
to protect public health. During these challenging times,
many of the Bank’s customers, which include small and medium-sized
businesses, professionals, consumers, municipalities and other
organizations, may experience a significant decline in, or complete
discontinuance of, business activity, earnings and cash flow.
For some this may be temporary, but for other customers it could be
longer-lasting and may lead to permanent business closure or job
loss.
These challenges may result in higher drawdowns
by customers on the Bank’s lending commitments and higher past due
and nonaccrual loans, troubled debt restructurings and credit
losses. The value of collateral supporting mortgage loans may
be negatively impacted leading to a deterioration in the Bank’s
loan-to-value ratios and increased risk of loss. In addition,
businesses, consumers and municipalities facing cash flow problems
may withdraw deposits at a higher rate than in the past leading to
greater deposit outflows from the Bank. Municipalities may
experience financial stress from a decline in tax revenue and the
cost of responding to the pandemic, which may lead to a
deterioration in the value of the Bank’s municipal securities
portfolio. While the Federal government has responded to the
COVID-19 pandemic in an aggressive manner to mitigate the negative
impact on the economy, the 150 basis point decrease in the Federal
Funds Target Rate during March increases the challenge of lending
at an acceptable margin.
All of the issues above, and others, exert
downward pressure on the Bank’s earnings, profitability metrics,
liquidity and capital and could negatively impact the Bank’s
ability to grow its loan portfolio and deposits. The full
impact of the pandemic on the Bank and our customers is beyond the
Bank’s control and current knowledge and will ultimately be
determined by the duration of the pandemic and the rate at which
the local and national economies recover from the current business
disruption and high level of unemployment.
CONSOLIDATED BALANCE
SHEETS(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
3/31/20 |
|
12/31/19 |
|
|
|
|
|
|
|
(dollars in thousands) |
Assets: |
|
|
|
|
|
|
Cash and cash equivalents |
|
$ |
120,208 |
|
|
$ |
38,968 |
|
Investment securities available-for-sale, at fair value |
|
|
679,463 |
|
|
|
697,544 |
|
|
|
|
|
|
|
|
Loans: |
|
|
|
|
|
|
Commercial and industrial |
|
|
126,073 |
|
|
|
103,879 |
|
Secured by real estate: |
|
|
|
|
|
|
Commercial mortgages |
|
|
1,376,257 |
|
|
|
1,401,289 |
|
Residential mortgages |
|
|
1,558,401 |
|
|
|
1,621,419 |
|
Home equity lines |
|
|
60,296 |
|
|
|
59,231 |
|
Consumer and other |
|
|
2,274 |
|
|
|
2,431 |
|
|
|
|
3,123,301 |
|
|
|
3,188,249 |
|
Allowance for credit losses |
|
|
(34,105 |
) |
|
|
(29,289 |
) |
|
|
|
3,089,196 |
|
|
|
3,158,960 |
|
|
|
|
|
|
|
|
Restricted stock, at cost |
|
|
30,224 |
|
|
|
30,899 |
|
Bank premises and equipment, net |
|
|
39,646 |
|
|
|
40,017 |
|
Right of use asset - operating leases |
|
|
13,992 |
|
|
|
14,343 |
|
Bank-owned life insurance |
|
|
83,680 |
|
|
|
83,119 |
|
Pension plan assets, net |
|
|
18,341 |
|
|
|
18,275 |
|
Deferred income tax benefit |
|
|
3,767 |
|
|
|
317 |
|
Other assets |
|
|
15,850 |
|
|
|
15,401 |
|
|
|
$ |
4,094,367 |
|
|
$ |
4,097,843 |
|
Liabilities: |
|
|
|
|
|
|
Deposits: |
|
|
|
|
|
|
Checking |
|
$ |
973,355 |
|
|
$ |
911,978 |
|
Savings, NOW and money market |
|
|
1,682,389 |
|
|
|
1,720,599 |
|
Time, $100,000 and over |
|
|
250,991 |
|
|
|
242,359 |
|
Time, other |
|
|
267,102 |
|
|
|
269,080 |
|
|
|
|
3,173,837 |
|
|
|
3,144,016 |
|
|
|
|
|
|
|
|
Short-term borrowings |
|
|
60,599 |
|
|
|
190,710 |
|
Long-term debt |
|
|
452,472 |
|
|
|
337,472 |
|
Operating lease liability |
|
|
14,874 |
|
|
|
15,220 |
|
Accrued expenses and other liabilities |
|
|
16,376 |
|
|
|
21,317 |
|
|
|
|
3,718,158 |
|
|
|
3,708,735 |
|
Stockholders'
Equity: |
|
|
|
|
|
|
Common stock, par value $.10 per share: |
|
|
|
|
|
|
Authorized, 80,000,000 shares; |
|
|
|
|
|
|
Issued and outstanding, 23,806,901 and 23,934,632 shares |
|
|
2,381 |
|
|
|
2,393 |
|
Surplus |
|
|
105,156 |
|
|
|
111,744 |
|
Retained earnings |
|
|
276,913 |
|
|
|
274,376 |
|
|
|
|
384,450 |
|
|
|
388,513 |
|
Accumulated other comprehensive income (loss), net of tax |
|
|
(8,241 |
) |
|
|
595 |
|
|
|
|
376,209 |
|
|
|
389,108 |
|
|
|
$ |
4,094,367 |
|
|
$ |
4,097,843 |
|
|
CONSOLIDATED STATEMENTS OF
INCOME(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended |
|
|
|
3/31/20 |
|
3/31/19 |
|
|
|
|
|
|
|
|
|
(dollars in thousands) |
Interest and dividend
income: |
|
|
|
|
|
|
|
Loans |
|
$ |
28,931 |
|
$ |
29,416 |
|
|
Investment securities: |
|
|
|
|
|
|
|
Taxable |
|
|
3,426 |
|
|
4,045 |
|
|
Nontaxable |
|
|
2,565 |
|
|
3,092 |
|
|
|
|
|
34,922 |
|
|
36,553 |
|
|
Interest expense: |
|
|
|
|
|
|
|
Savings, NOW and money market deposits |
|
|
4,280 |
|
|
4,000 |
|
|
Time deposits |
|
|
3,042 |
|
|
3,398 |
|
|
Short-term borrowings |
|
|
619 |
|
|
1,965 |
|
|
Long-term debt |
|
|
1,995 |
|
|
1,780 |
|
|
|
|
|
9,936 |
|
|
11,143 |
|
|
Net interest income |
|
|
24,986 |
|
|
25,410 |
|
|
Provision (credit) for credit
losses |
|
|
2,358 |
|
|
(457 |
) |
|
Net interest income after provision (credit) for credit losses |
|
|
22,628 |
|
|
25,867 |
|
|
|
|
|
|
|
|
|
|
Noninterest income: |
|
|
|
|
|
|
|
Investment Management Division income |
|
|
548 |
|
|
481 |
|
|
Service charges on deposit accounts |
|
|
987 |
|
|
705 |
|
|
Other |
|
|
1,483 |
|
|
1,258 |
|
|
|
|
|
3,018 |
|
|
2,444 |
|
|
Noninterest expense: |
|
|
|
|
|
|
|
Salaries and employee benefits |
|
|
9,274 |
|
|
9,258 |
|
|
Occupancy and equipment |
|
|
3,072 |
|
|
2,937 |
|
|
Other |
|
|
2,512 |
|
|
2,940 |
|
|
|
|
|
14,858 |
|
|
15,135 |
|
|
Income before income taxes |
|
|
10,788 |
|
|
13,176 |
|
|
Income tax expense |
|
|
1,640 |
|
|
2,335 |
|
|
Net income |
|
$ |
9,148 |
|
$ |
10,841 |
|
|
|
|
|
|
|
|
|
|
Share and Per Share Data: |
|
|
|
|
|
|
|
Weighted Average Common Shares |
|
|
23,904,266 |
|
|
25,284,357 |
|
|
Dilutive stock options and restricted stock units |
|
|
54,633 |
|
|
156,204 |
|
|
|
|
|
23,958,899 |
|
|
25,440,561 |
|
|
|
|
|
|
|
|
|
|
Basic EPS |
|
|
$.38 |
|
|
$.43 |
|
|
Diluted EPS |
|
|
$.38 |
|
|
$.43 |
|
|
Cash Dividends Declared per share |
|
|
$.18 |
|
|
$.17 |
|
|
|
|
|
|
|
|
|
|
ROA |
|
|
.90 |
% |
|
1.03 |
% |
|
ROE |
|
|
9.41 |
% |
|
11.30 |
% |
|
Net Interest Margin |
|
|
2.62 |
% |
|
2.56 |
% |
|
Dividend Payout Ratio |
|
|
47.37 |
% |
|
39.53 |
% |
|
|
PROBLEM AND POTENTIAL PROBLEM LOANS AND
ASSETS(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
3/31/20 |
|
|
12/31/19 |
|
|
|
|
|
|
|
|
|
|
|
(dollars in thousands) |
|
|
|
|
|
|
|
|
|
|
Loans, excluding troubled debt
restructurings: |
|
|
|
|
|
|
|
|
Past due 30 through 89 days |
|
$ |
1,725 |
|
|
$ |
2,928 |
|
Past due 90 days or more and still accruing |
|
|
— |
|
|
|
— |
|
Nonaccrual |
|
|
4,378 |
|
|
|
423 |
|
|
|
|
6,103 |
|
|
|
3,351 |
|
Troubled debt
restructurings: |
|
|
|
|
|
|
|
|
Performing according to their modified terms |
|
|
902 |
|
|
|
1,070 |
|
Past due 30 through 89 days |
|
|
— |
|
|
|
— |
|
Past due 90 days or more and still accruing |
|
|
— |
|
|
|
— |
|
Nonaccrual |
|
|
463 |
|
|
|
465 |
|
|
|
|
1,365 |
|
|
|
1,535 |
|
Total past due, nonaccrual and
restructured loans: |
|
|
|
|
|
|
|
|
Restructured and performing according to their modified terms |
|
|
902 |
|
|
|
1,070 |
|
Past due 30 through 89 days |
|
|
1,725 |
|
|
|
2,928 |
|
Past due 90 days or more and still accruing |
|
|
— |
|
|
|
— |
|
Nonaccrual |
|
|
4,841 |
|
|
|
888 |
|
|
|
|
7,468 |
|
|
|
4,886 |
|
Other real estate owned |
|
|
— |
|
|
|
— |
|
|
|
$ |
7,468 |
|
|
$ |
4,886 |
|
|
|
|
|
|
|
|
|
|
Allowance for credit
losses |
|
$ |
34,105 |
|
|
$ |
29,289 |
|
Allowance for credit losses as
a percentage of total loans |
|
|
1.09 |
% |
|
|
.92 |
% |
Allowance for credit losses as
a multiple of nonaccrual loans |
|
|
7.0 |
x |
|
|
33.0 |
x |
|
|
|
|
|
|
|
|
|
AVERAGE BALANCE SHEET, INTEREST RATES AND
INTEREST DIFFERENTIAL(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended March 31, |
|
|
2020 |
|
2019 |
|
|
Average |
|
Interest/ |
|
Average |
|
Average |
|
Interest/ |
|
Average |
(dollars in thousands) |
|
Balance |
|
Dividends |
|
Rate |
|
Balance |
|
Dividends |
|
Rate |
Assets: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest-earning bank balances |
|
$ |
30,077 |
|
|
$ |
82 |
|
1.10 |
% |
|
$ |
24,800 |
|
|
$ |
146 |
|
2.39 |
% |
Investment securities: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Taxable |
|
|
342,661 |
|
|
|
3,344 |
|
3.90 |
|
|
|
374,124 |
|
|
|
3,899 |
|
4.17 |
|
Nontaxable (1) |
|
|
380,173 |
|
|
|
3,247 |
|
3.42 |
|
|
|
418,898 |
|
|
|
3,915 |
|
3.74 |
|
Loans (1) |
|
|
3,159,533 |
|
|
|
28,933 |
|
3.66 |
|
|
|
3,261,716 |
|
|
|
29,417 |
|
3.61 |
|
Total interest-earning
assets |
|
|
3,912,444 |
|
|
|
35,606 |
|
3.64 |
|
|
|
4,079,538 |
|
|
|
37,377 |
|
3.67 |
|
Allowance for credit
losses |
|
|
(32,110 |
) |
|
|
|
|
|
|
|
|
(30,892 |
) |
|
|
|
|
|
|
Net interest-earning
assets |
|
|
3,880,334 |
|
|
|
|
|
|
|
|
|
4,048,646 |
|
|
|
|
|
|
|
Cash and due from banks |
|
|
34,362 |
|
|
|
|
|
|
|
|
|
36,673 |
|
|
|
|
|
|
|
Premises and equipment,
net |
|
|
39,932 |
|
|
|
|
|
|
|
|
|
41,310 |
|
|
|
|
|
|
|
Other assets |
|
|
130,262 |
|
|
|
|
|
|
|
|
|
129,391 |
|
|
|
|
|
|
|
|
|
$ |
4,084,890 |
|
|
|
|
|
|
|
|
$ |
4,256,020 |
|
|
|
|
|
|
|
Liabilities and
Stockholders' Equity: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Savings, NOW & money
market deposits |
|
$ |
1,710,761 |
|
|
|
4,280 |
|
1.01 |
|
|
$ |
1,642,349 |
|
|
|
4,000 |
|
.99 |
|
Time deposits |
|
|
510,037 |
|
|
|
3,042 |
|
2.40 |
|
|
|
606,704 |
|
|
|
3,398 |
|
2.27 |
|
Total interest-bearing
deposits |
|
|
2,220,798 |
|
|
|
7,322 |
|
1.33 |
|
|
|
2,249,053 |
|
|
|
7,398 |
|
1.33 |
|
Short-term borrowings |
|
|
123,337 |
|
|
|
619 |
|
2.02 |
|
|
|
301,644 |
|
|
|
1,965 |
|
2.64 |
|
Long-term debt |
|
|
399,340 |
|
|
|
1,995 |
|
2.01 |
|
|
|
355,706 |
|
|
|
1,780 |
|
2.03 |
|
Total interest-bearing
liabilities |
|
|
2,743,475 |
|
|
|
9,936 |
|
1.46 |
|
|
|
2,906,403 |
|
|
|
11,143 |
|
1.55 |
|
Checking deposits |
|
|
918,044 |
|
|
|
|
|
|
|
|
|
931,625 |
|
|
|
|
|
|
|
Other liabilities |
|
|
32,211 |
|
|
|
|
|
|
|
|
|
29,063 |
|
|
|
|
|
|
|
|
|
|
3,693,730 |
|
|
|
|
|
|
|
|
|
3,867,091 |
|
|
|
|
|
|
|
Stockholders' equity |
|
|
391,160 |
|
|
|
|
|
|
|
|
|
388,929 |
|
|
|
|
|
|
|
|
|
$ |
4,084,890 |
|
|
|
|
|
|
|
|
$ |
4,256,020 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net interest income (1) |
|
|
|
|
$ |
25,670 |
|
|
|
|
|
|
|
$ |
26,234 |
|
|
|
Net interest spread (1) |
|
|
|
|
|
|
|
2.18 |
% |
|
|
|
|
|
|
|
2.12 |
% |
Net interest margin (1) |
|
|
|
|
|
|
|
2.62 |
% |
|
|
|
|
|
|
|
2.56 |
% |
(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 $1.27 for each period presented
using the statutory federal income tax rate of 21%.
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; 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”).
In addition, the COVID-19 pandemic is having an adverse impact on
the Corporation, its customers and the communities it serves.
The adverse effect of the COVID-19 pandemic on the
Corporation, its customers and the communities where it operates
may adversely affect the Corporation’s business, results of
operations and financial condition for an indefinite period of
time. 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, 2020. The Form 10-Q will be available through
the Bank’s website at www.fnbli.com on or about May 6, 2020, when
it is electronically filed with the SEC. Our SEC filings are also
available on the SEC’s website at www.sec.gov.
For More Information Contact:Jay McConie, EVP
and CFO (516) 671-4900, Ext. 7404
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