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 and nine months ended
September 30, 2020. 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 and EPS
were
$10.8
million and
$.45, respectively,
compared to
$10.8 million
and $.44
- ROA and
ROE were 1.02% and
10.77%,
respectively, compared to 1.02% and
10.83%
- Net
interest margin increased 10 basis points
to
2.66%
from
2.56%
- Cost of
interest-bearing deposits declined 75
basis points to
.73% and cost
of interest-bearing liabilities
declined 60
basis points to
.96%
- Cash
Dividends Per Share increased
5.6% to
$.19 from
$.18
-
Over 99% of COVID-19 loan
forbearance agreements concluded and
resumed making
payments
-
Completed a $128.7 million deleverage transaction to remove
inefficient leverage
NINE MONTH
HIGHLIGHTS
- Net
Income and EPS were
$30.7
million and
$1.28,
respectively, compared to
$32.4
million and
$1.29
- ROA and
ROE were .98%
and
10.49%,
respectively, compared to 1.03%
and
11.04%
- Net
interest margin was 2.64% versus
2.57%
Analysis of
Earnings – Nine
Months Ended September
30, 2020
Net income for the first nine months of 2020 was
$30.7 million, a decrease of $1.7 million, or 5.2%, versus the same
period last year. The decrease is due to increases in the provision
for credit losses of $2.2 million and noninterest expense, before
debt extinguishment costs, of $1.9 million, or 4.2%.
These items were partially offset by increases in net interest
income of $1.4 million, or 1.9%, and noninterest income, before
securities gains, of $508,000, or 6.4%, and a decrease in income
tax expense of $400,000.
The increase in net interest income is mainly
attributable to a reduction in deposit rates in response to
decreases in the Federal Funds Target Rate to near zero as well as
significant declines in rates across the entire yield
curve. The cost of savings, NOW and money market
deposits declined 45 basis points to .63% and the cost of
interest-bearing liabilities declined 37 basis points to 1.19%.
These decreases far outpaced the 15 basis point decline in yield on
securities and loans which are generally not subject to immediate
repricing with changes in market interest rates. The
increase in net interest income was also attributable to income
from SBA Paycheck Protection Program (“PPP”) loans of $1.9 million
and a favorable shift in the mix of funding as an increase in
average checking deposits of $127.1 million and a decline in
average interest-bearing liabilities of $180.2 million resulted in
average checking deposits comprising a larger portion of total
funding. Average checking deposits include a portion of
the proceeds of PPP loans.
The decline in yield on securities and loans was
mainly attributable to an increase in prepayment speeds and lower
yields available on securities purchases and loan originations. The
economic impact of the COVID-19 pandemic (“pandemic”) caused loans
and the overall balance sheet to shrink during the past two
quarters. The average balance of loans decreased $84.8 million, or
2.6%, and the average balance of investment securities declined
$48.8 million, or 6.2%. The average balance of loans for the
current nine-month period includes $97.4 million of PPP loans at a
weighted average yield of approximately 2.65%. Measures taken to
contain the pandemic significantly disrupted economic activity in
our area, caused business and school closures and thus increased
unemployment. These disruptions caused management to put a pause on
its loan pipeline and slow new business development. The decrease
in loans and securities resulted in average interest-earning bank
balances increasing $81.4 million, or 266%. As economic activity
continues to improve and business restrictions are slowly relaxed
in our marketplace, our mortgage loan pipeline is expected to
increase through year-end. The mortgage loan pipeline was $72
million at September 30, 2020, an increase of $33 million during
the quarter.
Net interest margin for the third quarter and
first nine months of 2020 were 2.66% and 2.64%, respectively, an
increase of 10 basis points and 7 basis points, respectively, over
the comparable periods of 2019. The increases were mainly
attributable to our ability to reduce the rates paid on
interest-bearing deposits faster than interest-earning assets
repriced downward as a significant portion of our municipal bond
and mortgage loan portfolios have fixed rates. The PPP loan yields
and acceleration of prepayments of residential mortgage loans
during 2020 exert downward pressure on net interest income and
margin.
The provision for credit losses was $2.5 million
for the first nine months of 2020 on a current expected credit loss
(“CECL”) basis as compared to $279,000 for the 2019 period on an
incurred loss basis. The $2.5 million provision for the current
nine-month period was primarily attributable to the pandemic and
includes $4.2 million to reflect current and forecasted economic
conditions and $1.8 million for net chargeoffs, partially offset by
a decline in the outstanding loan balance of residential and
commercial mortgages. The $279,000 provision for the
2019 period was driven mainly by net chargeoffs of $1.3 million
partially offset by a decline in outstanding loans.
The increase in noninterest income, before
securities gains, of $508,000 is primarily attributable to an
increase in the non-service components of the Bank’s defined
benefit pension plan of $784,000. Management remains focused on
revenue enhancement initiatives; however, the pandemic is
negatively affecting most categories of noninterest income.
The increase in noninterest expense, before debt
extinguishment costs, of $1.9 million includes charges related to
the closure and consolidation of six branches of $476,000,
technology and service contract termination costs of $315,000 and
expenses attributable to the pandemic of approximately $300,000.
Other factors which increased noninterest expense include salaries,
employee benefits and equity compensation expense mainly related to
hiring lending and credit staff, salary adjustments and the
immediate vesting of stock awards in 2020. These expenses were
partially offset by decreases in consulting fees of $634,000 and
marketing expense of $216,000. The decrease in consulting fees was
mainly due to a revenue enhancement project in 2019.
In late September 2020, the Bank eliminated some
inefficient leverage by selling mortgage-backed securities with a
carrying value of $64.5 million and using the proceeds along with
excess cash of $66.8 million to prepay long-term debt of $128.7
million. The transactions resulted in an overall net loss of $3,000
with the gain on sale of securities and loss on extinguishment of
debt essentially the same at $2.6 million each. Because of the
timing of the transactions, there was little impact on net interest
margin for the current quarter or nine-month period. The
deleveraging will benefit net interest margin by approximately 10
basis points and improve leverage capital. The benefit to net
interest margin could be offset by challenges we face discussed
throughout this earnings release.
The decrease in income tax expense of $400,000
is attributable to lower pretax earnings in the current nine-month
period as compared to the 2019 period and a decline in the
effective tax rate to 16.8%.
Analysis of Earnings
– Third Quarter
2020 Versus Third
Quarter 2019
Net income for the third quarter of 2020 of
$10.8 million was essentially unchanged from the comparable period
of 2019. Earnings for the third quarter include increases in net
interest income of $1.0 million and noninterest income, before
securities gains, of $80,000, and a decrease in the provision for
credit losses of $314,000. The positive impact of these items was
offset by increases in noninterest expense, before debt
extinguishment costs, of $1.3 million, and income tax expense of
$181,000. The increases in net interest income and
noninterest income occurred for substantially the same reasons
discussed above with respect to the nine-month periods. There was
no provision for credit losses for the current quarter on a CECL
basis as net chargeoffs of $1.3 million and an increase in
historical loss rates were offset by a decline in the outstanding
loan balance of residential and commercial mortgages. The increase
in noninterest expense was mainly due to the aforementioned branch
closures and consolidations, contract termination charges and
higher salaries and employee benefits-related costs in the current
quarter. Partially offsetting these increases was a decline in
consulting fees of $431,000 due to the aforementioned revenue
enhancement project. The increase in income tax expense reflects
higher pretax earnings in the current quarter and an increase in
the effective tax rate to 18.0%.
Analysis of Earnings –
Third Quarter Versus
Second Quarter 2020
Net income for the third quarter was essentially
unchanged from $10.8 million earned in the second quarter. Net
interest margin increased 2 basis points from 2.64% for the second
quarter to 2.66% for the current quarter. The increase is mainly
due to the reasons discussed above with respect to the third
quarter and nine-month periods including lower deposit costs
partially offset by prepayments of residential mortgage loans.
Asset Quality
The Bank’s allowance for credit losses to total
loans (reserve coverage ratio) on a CECL basis was 1.01% at January
1, 2020, 1.09% at March 31, 2020, and 1.08% at June 30, 2020, and
September 30, 2020. Excluding PPP loans, the reserve coverage ratio
increased 8 basis points during the first quarter of 2020, another
4 basis points during the second quarter of 2020 and maintained
that level during the third quarter of 2020. Nonaccrual loans,
troubled debt restructurings and loans past due 30 through 89 days
remain at low levels.
COVID-19 Loan
Modifications
During the second quarter, the Bank provided
payment deferrals in the form of loan modifications to borrowers
experiencing financial disruption and economic hardship as a result
of the pandemic. As of October 26, 2020, all such loans have
resumed making payment and are current except for three small
business loans that were charged-off in the third quarter totaling
$281,000, one loan that was 30 to 89 days past due in the amount of
$123,000 and four loans that have not yet made full payments in the
amount of $1.3 million. Our employees took tremendous
pride in lending under the PPP program and providing payment
deferrals to support customers adversely affected by the pandemic.
We are also proud of our employees and the banking industry for
stepping up to the challenges created by this pandemic.
Capital
The Corporation’s balance sheet remains
positioned for lending and growth with a Leverage Ratio of
approximately 9.6% at September 30, 2020. We expect to
restart the share repurchase program during the fourth quarter of
2020.
Key Initiatives,
Customer Service and Challenges We
Face
Our 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 include building on
our relationship banking business, growing fee income, enhancing
our brand, highlighting our digital offerings and refining our
branch strategy.
We are also focused on serving customers through
our personalized approach to banking and continue to offer a wide
range of loan and deposit products to customers and the communities
we serve. The Bank’s strong capital and liquidity, branch network,
lending and deposit platforms and focus on internal controls and
cybersecurity provide a solid foundation for serving customers
during these challenging times. We provide customers with ready
access through our branch network, ATMs and digital offerings.
The interest rate and economic environment
continues to exert substantial pressure on net interest income, net
interest margin, earnings, profitability metrics, loans outstanding
and the Bank’s ability to grow. These items could be
negatively impacted by yield curve inversion, low yields available
on loans and securities and potential credit losses arising from
current economic conditions. Among other things, very low interest
rates have caused an acceleration of residential mortgage loan
repayments and repricings which are expected to continue in the
fourth quarter. The weighted average reduction in yield for
refinancings completed or in process at quarter end was 75 basis
points which will reduce quarterly net interest income by
approximately $500,000. In addition, during the fourth quarters of
2020 and 2021, corporate bonds with current fair values of $80.6
million and $30.2 million, respectively, and an original weighted
average fixed rate yield of 5.14% begin repricing on a quarterly
basis to a floating rate. At current rates, the
weighted average floating rate yield would be .89%.
Such repricings will reduce net interest income for the fourth
quarter of 2020 by approximately $700,000.
The pandemic continues to present substantial
challenges for the Bank and its customers. While business activity
in the NYC metropolitan area has started to improve, the pace of
the recovery is slow and remains uncertain. An elevated level of
unemployment and the significant business disruption experienced in
the spring and summer cast doubt on the extent of economic recovery
possible in the near term and the ability of some businesses to
continue.
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 pandemic is having an adverse impact on
the Corporation, its customers and the communities it serves. The
adverse effect of the 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 September 30, 2020. The Form 10-Q will be available through
the Bank’s website at www.fnbli.com on or about November 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.
CONSOLIDATED BALANCE
SHEETS(Unaudited)
|
|
|
|
|
9/30/20 |
|
12/31/19 |
|
|
|
|
|
(dollars in thousands) |
Assets: |
|
|
|
|
|
Cash and cash equivalents |
$ |
163,852 |
|
|
$ |
38,968 |
|
Investment securities available-for-sale, at fair value |
|
646,106 |
|
|
|
697,544 |
|
|
|
|
|
|
|
Loans: |
|
|
|
|
|
Commercial and industrial |
|
102,405 |
|
|
|
103,879 |
|
SBA Paycheck Protection Program |
|
166,405 |
|
|
|
— |
|
Secured by real estate: |
|
|
|
|
|
Commercial mortgages |
|
1,331,890 |
|
|
|
1,401,289 |
|
Residential mortgages |
|
1,379,181 |
|
|
|
1,621,419 |
|
Home equity lines |
|
55,070 |
|
|
|
59,231 |
|
Consumer and other |
|
1,167 |
|
|
|
2,431 |
|
|
|
3,036,118 |
|
|
|
3,188,249 |
|
Allowance for credit losses |
|
(32,792 |
) |
|
|
(29,289 |
) |
|
|
3,003,326 |
|
|
|
3,158,960 |
|
|
|
|
|
|
|
Restricted stock, at cost |
|
22,029 |
|
|
|
30,899 |
|
Bank premises and equipment, net |
|
38,691 |
|
|
|
40,017 |
|
Right of use asset - operating leases |
|
12,387 |
|
|
|
14,343 |
|
Bank-owned life insurance |
|
84,850 |
|
|
|
83,119 |
|
Pension plan assets, net |
|
18,472 |
|
|
|
18,275 |
|
Deferred income tax benefit |
|
3,395 |
|
|
|
317 |
|
Other assets |
|
18,200 |
|
|
|
15,401 |
|
|
$ |
4,011,308 |
|
|
$ |
4,097,843 |
|
Liabilities: |
|
|
|
|
|
Deposits: |
|
|
|
|
|
Checking |
$ |
1,165,065 |
|
|
$ |
911,978 |
|
Savings, NOW and money market |
|
1,638,980 |
|
|
|
1,720,599 |
|
Time, $100,000 and over |
|
196,989 |
|
|
|
242,359 |
|
Time, other |
|
247,812 |
|
|
|
269,080 |
|
|
|
3,248,846 |
|
|
|
3,144,016 |
|
|
|
|
|
|
|
Short-term borrowings |
|
57,708 |
|
|
|
190,710 |
|
Long-term debt |
|
273,002 |
|
|
|
337,472 |
|
Operating lease liability |
|
13,230 |
|
|
|
15,220 |
|
Accrued expenses and other liabilities |
|
20,788 |
|
|
|
21,317 |
|
|
|
3,613,574 |
|
|
|
3,708,735 |
|
Stockholders'
Equity: |
|
|
|
|
|
Common stock, par value $.10 per share: |
|
|
|
|
|
Authorized, 80,000,000 shares; |
|
|
|
|
|
Issued and outstanding, 23,864,840 and 23,934,632 shares |
|
2,386 |
|
|
|
2,393 |
|
Surplus |
|
106,595 |
|
|
|
111,744 |
|
Retained earnings |
|
289,612 |
|
|
|
274,376 |
|
|
|
398,593 |
|
|
|
388,513 |
|
Accumulated other comprehensive income (loss), net of tax |
|
(859 |
) |
|
|
595 |
|
|
|
397,734 |
|
|
|
389,108 |
|
|
$ |
4,011,308 |
|
|
$ |
4,097,843 |
|
CONSOLIDATED STATEMENTS OF
INCOME(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Nine Months Ended |
|
Three Months Ended |
|
9/30/20 |
|
9/30/19 |
|
9/30/20 |
|
9/30/19 |
|
|
|
|
|
|
|
|
|
|
|
(dollars in thousands) |
|
Interest and dividend
income: |
|
|
|
|
|
|
|
|
|
|
|
|
Loans |
$ |
83,349 |
|
$ |
88,382 |
|
$ |
26,461 |
|
$ |
29,353 |
|
Investment securities: |
|
|
|
|
|
|
|
|
|
|
|
|
Taxable |
|
9,972 |
|
|
11,726 |
|
|
3,223 |
|
|
3,758 |
|
Nontaxable |
|
7,520 |
|
|
8,819 |
|
|
2,454 |
|
|
2,773 |
|
|
|
100,841 |
|
|
108,927 |
|
|
32,138 |
|
|
35,884 |
|
Interest expense: |
|
|
|
|
|
|
|
|
|
|
|
|
Savings, NOW and money market deposits |
|
7,946 |
|
|
13,856 |
|
|
1,307 |
|
|
5,015 |
|
Time deposits |
|
8,487 |
|
|
11,361 |
|
|
2,559 |
|
|
4,030 |
|
Short-term borrowings |
|
1,219 |
|
|
2,569 |
|
|
334 |
|
|
62 |
|
Long-term debt |
|
6,177 |
|
|
5,558 |
|
|
2,020 |
|
|
1,883 |
|
|
|
23,829 |
|
|
33,344 |
|
|
6,220 |
|
|
10,990 |
|
Net interest income |
|
77,012 |
|
|
75,583 |
|
|
25,918 |
|
|
24,894 |
|
Provision for credit
losses |
|
2,450 |
|
|
279 |
|
|
— |
|
|
314 |
|
Net interest income after provision for credit losses |
|
74,562 |
|
|
75,304 |
|
|
25,918 |
|
|
24,580 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Noninterest income: |
|
|
|
|
|
|
|
|
|
|
|
|
Investment Management Division income |
|
1,620 |
|
|
1,502 |
|
|
553 |
|
|
504 |
|
Service charges on deposit accounts |
|
2,267 |
|
|
2,321 |
|
|
661 |
|
|
836 |
|
Net gains on sales of securities |
|
2,556 |
|
|
— |
|
|
2,556 |
|
|
— |
|
Other |
|
4,502 |
|
|
4,058 |
|
|
1,586 |
|
|
1,380 |
|
|
|
10,945 |
|
|
7,881 |
|
|
5,356 |
|
|
2,720 |
|
Noninterest expense: |
|
|
|
|
|
|
|
|
|
|
|
|
Salaries and employee benefits |
|
28,278 |
|
|
26,536 |
|
|
9,365 |
|
|
8,555 |
|
Occupancy and equipment |
|
9,324 |
|
|
8,712 |
|
|
3,191 |
|
|
2,872 |
|
Debt extinguishment |
|
2,559 |
|
|
— |
|
|
2,559 |
|
|
— |
|
Other |
|
8,496 |
|
|
8,993 |
|
|
3,024 |
|
|
2,903 |
|
|
|
48,657 |
|
|
44,241 |
|
|
18,139 |
|
|
14,330 |
|
Income before income taxes |
|
36,850 |
|
|
38,944 |
|
|
13,135 |
|
|
12,970 |
|
Income tax expense |
|
6,176 |
|
|
6,576 |
|
|
2,368 |
|
|
2,187 |
|
Net income |
$ |
30,674 |
|
$ |
32,368 |
|
$ |
10,767 |
|
$ |
10,783 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Share and Per Share Data: |
|
|
|
|
|
|
|
|
|
|
|
|
Weighted Average Common Shares |
|
23,867,726 |
|
|
24,855,562 |
|
|
23,860,764 |
|
|
24,470,249 |
|
Dilutive stock options and restricted stock units |
|
38,678 |
|
|
177,072 |
|
|
37,773 |
|
|
192,860 |
|
|
|
23,906,404 |
|
|
25,032,634 |
|
|
23,898,537 |
|
|
24,663,109 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic EPS |
|
$1.29 |
|
|
$1.30 |
|
|
$0.45 |
|
|
$0.44 |
|
Diluted EPS |
|
1.28 |
|
|
1.29 |
|
|
0.45 |
|
|
0.44 |
|
Cash Dividends Declared per share |
|
0.55 |
|
|
0.52 |
|
|
0.19 |
|
|
0.18 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
FINANCIAL RATIOS |
(Unaudited) |
ROA |
|
.98 |
% |
|
1.03 |
% |
|
1.02 |
% |
|
1.02 |
% |
ROE |
|
10.49 |
% |
|
11.04 |
% |
|
10.77 |
% |
|
10.83 |
% |
Net Interest Margin |
|
2.64 |
% |
|
2.57 |
% |
|
2.66 |
% |
|
2.56 |
% |
Dividend Payout Ratio |
|
42.97 |
% |
|
40.31 |
% |
|
42.22 |
% |
|
40.91 |
% |
PROBLEM AND POTENTIAL PROBLEM LOANS AND
ASSETS(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
9/30/20 |
|
|
12/31/19 |
|
|
|
|
|
|
|
|
|
(dollars in thousands) |
|
|
|
|
|
|
|
|
|
Loans, excluding troubled debt
restructurings: |
|
|
|
|
|
|
|
Past due 30 through 89 days |
$ |
982 |
|
|
$ |
2,928 |
|
Past due 90 days or more and still accruing |
|
— |
|
|
|
— |
|
Nonaccrual |
|
2,154 |
|
|
|
423 |
|
|
|
3,136 |
|
|
|
3,351 |
|
Troubled debt
restructurings: |
|
|
|
|
|
|
|
Performing according to their modified terms |
|
1,329 |
|
|
|
1,070 |
|
Past due 30 through 89 days |
|
— |
|
|
|
— |
|
Past due 90 days or more and still accruing |
|
— |
|
|
|
— |
|
Nonaccrual |
|
— |
|
|
|
465 |
|
|
|
1,329 |
|
|
|
1,535 |
|
Total past due, nonaccrual and
restructured loans: |
|
|
|
|
|
|
|
Restructured and performing according to their modified terms |
|
1,329 |
|
|
|
1,070 |
|
Past due 30 through 89 days |
|
982 |
|
|
|
2,928 |
|
Past due 90 days or more and still accruing |
|
— |
|
|
|
— |
|
Nonaccrual |
|
2,154 |
|
|
|
888 |
|
|
|
4,465 |
|
|
|
4,886 |
|
Other real estate owned |
|
— |
|
|
|
— |
|
|
$ |
4,465 |
|
|
$ |
4,886 |
|
|
|
|
|
|
|
|
|
Allowance for credit
losses |
$ |
32,792 |
|
|
$ |
29,289 |
|
Allowance for credit losses as
a percentage of total loans |
|
1.08 |
% |
|
|
.92 |
% |
Allowance for credit losses as
a multiple of nonaccrual loans |
|
15.2 |
x |
|
|
33.0 |
x |
AVERAGE BALANCE SHEET, INTEREST RATES AND
INTEREST DIFFERENTIAL(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Nine Months Ended September 30, |
|
|
2020 |
|
2019 |
|
|
Average |
|
Interest/ |
|
Average |
|
Average |
|
Interest/ |
|
Average |
(dollars in thousands) |
|
Balance |
|
Dividends |
|
Rate |
|
Balance |
|
Dividends |
|
Rate |
Assets: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest-earning bank balances |
|
$ |
111,979 |
|
|
$ |
159 |
|
.19 |
% |
|
$ |
30,617 |
|
|
$ |
530 |
|
2.31 |
% |
Investment securities: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Taxable |
|
|
356,512 |
|
|
|
9,813 |
|
3.67 |
|
|
|
369,525 |
|
|
|
11,196 |
|
4.04 |
|
Nontaxable (1) |
|
|
375,570 |
|
|
|
9,519 |
|
3.38 |
|
|
|
411,354 |
|
|
|
11,163 |
|
3.62 |
|
Loans (1) |
|
|
3,146,738 |
|
|
|
83,353 |
|
3.53 |
|
|
|
3,231,573 |
|
|
|
88,388 |
|
3.65 |
|
Total interest-earning
assets |
|
|
3,990,799 |
|
|
|
102,844 |
|
3.44 |
|
|
|
4,043,069 |
|
|
|
111,277 |
|
3.67 |
|
Allowance for credit
losses |
|
|
(33,286 |
) |
|
|
|
|
|
|
|
|
(30,203 |
) |
|
|
|
|
|
|
Net interest-earning
assets |
|
|
3,957,513 |
|
|
|
|
|
|
|
|
|
4,012,866 |
|
|
|
|
|
|
|
Cash and due from banks |
|
|
33,144 |
|
|
|
|
|
|
|
|
|
37,104 |
|
|
|
|
|
|
|
Premises and equipment,
net |
|
|
39,588 |
|
|
|
|
|
|
|
|
|
41,064 |
|
|
|
|
|
|
|
Other assets |
|
|
135,351 |
|
|
|
|
|
|
|
|
|
127,565 |
|
|
|
|
|
|
|
|
|
$ |
4,165,596 |
|
|
|
|
|
|
|
|
$ |
4,218,599 |
|
|
|
|
|
|
|
Liabilities and
Stockholders' Equity: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Savings, NOW & money
market deposits |
|
$ |
1,687,377 |
|
|
|
7,946 |
|
.63 |
|
|
$ |
1,710,985 |
|
|
|
13,856 |
|
1.08 |
|
Time deposits |
|
|
486,181 |
|
|
|
8,487 |
|
2.33 |
|
|
|
645,596 |
|
|
|
11,361 |
|
2.35 |
|
Total interest-bearing
deposits |
|
|
2,173,558 |
|
|
|
16,433 |
|
1.01 |
|
|
|
2,356,581 |
|
|
|
25,217 |
|
1.43 |
|
Short-term borrowings |
|
|
81,509 |
|
|
|
1,219 |
|
2.00 |
|
|
|
137,100 |
|
|
|
2,569 |
|
2.51 |
|
Long-term debt |
|
|
420,255 |
|
|
|
6,177 |
|
1.96 |
|
|
|
361,791 |
|
|
|
5,558 |
|
2.05 |
|
Total interest-bearing
liabilities |
|
|
2,675,322 |
|
|
|
23,829 |
|
1.19 |
|
|
|
2,855,472 |
|
|
|
33,344 |
|
1.56 |
|
Checking deposits |
|
|
1,067,839 |
|
|
|
|
|
|
|
|
|
940,717 |
|
|
|
|
|
|
|
Other liabilities |
|
|
31,878 |
|
|
|
|
|
|
|
|
|
30,554 |
|
|
|
|
|
|
|
|
|
|
3,775,039 |
|
|
|
|
|
|
|
|
|
3,826,743 |
|
|
|
|
|
|
|
Stockholders' equity |
|
|
390,557 |
|
|
|
|
|
|
|
|
|
391,856 |
|
|
|
|
|
|
|
|
|
$ |
4,165,596 |
|
|
|
|
|
|
|
|
$ |
4,218,599 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net interest income (1) |
|
|
|
|
$ |
79,015 |
|
|
|
|
|
|
|
$ |
77,933 |
|
|
|
Net interest spread (1) |
|
|
|
|
|
|
|
2.25 |
% |
|
|
|
|
|
|
|
2.11 |
% |
Net interest margin (1) |
|
|
|
|
|
|
|
2.64 |
% |
|
|
|
|
|
|
|
2.57 |
% |
(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%.
AVERAGE BALANCE SHEET, INTEREST RATES AND
INTEREST DIFFERENTIAL(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended September 30, |
|
|
2020 |
|
2019 |
(dollars in thousands) |
|
AverageBalance |
|
Interest/Dividends |
|
AverageRate |
|
AverageBalance |
|
Interest/Dividends |
|
AverageRate |
Assets: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest-earning bank balances |
|
$ |
151,857 |
|
|
$ |
39 |
|
.10 |
% |
|
$ |
41,171 |
|
|
$ |
230 |
|
2.22 |
% |
Investment securities: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Taxable |
|
|
379,422 |
|
|
|
3,184 |
|
3.36 |
|
|
|
371,400 |
|
|
|
3,528 |
|
3.80 |
|
Nontaxable (1) |
|
|
376,053 |
|
|
|
3,107 |
|
3.30 |
|
|
|
402,201 |
|
|
|
3,510 |
|
3.49 |
|
Loans (1) |
|
|
3,099,830 |
|
|
|
26,462 |
|
3.41 |
|
|
|
3,198,832 |
|
|
|
29,355 |
|
3.67 |
|
Total interest-earning
assets |
|
|
4,007,162 |
|
|
|
32,792 |
|
3.27 |
|
|
|
4,013,604 |
|
|
|
36,623 |
|
3.65 |
|
Allowance for credit
losses |
|
|
(33,624 |
) |
|
|
|
|
|
|
|
|
(29,618 |
) |
|
|
|
|
|
|
Net
interest-earning assets |
|
|
3,973,538 |
|
|
|
|
|
|
|
|
|
3,983,986 |
|
|
|
|
|
|
|
Cash and due from banks |
|
|
33,578 |
|
|
|
|
|
|
|
|
|
38,782 |
|
|
|
|
|
|
|
Premises and equipment,
net |
|
|
39,141 |
|
|
|
|
|
|
|
|
|
40,765 |
|
|
|
|
|
|
|
Other assets |
|
|
137,190 |
|
|
|
|
|
|
|
|
|
126,397 |
|
|
|
|
|
|
|
|
|
$ |
4,183,447 |
|
|
|
|
|
|
|
|
$ |
4,189,930 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Liabilities
and Stockholders' Equity: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Savings, NOW & money
market deposits |
|
$ |
1,653,535 |
|
|
|
1,307 |
|
.31 |
|
|
$ |
1,761,190 |
|
|
|
5,015 |
|
1.13 |
|
Time deposits |
|
|
452,188 |
|
|
|
2,559 |
|
2.25 |
|
|
|
661,269 |
|
|
|
4,030 |
|
2.42 |
|
Total
interest-bearing deposits |
|
|
2,105,723 |
|
|
|
3,866 |
|
.73 |
|
|
|
2,422,459 |
|
|
|
9,045 |
|
1.48 |
|
Short-term borrowings |
|
|
60,291 |
|
|
|
334 |
|
2.20 |
|
|
|
20,272 |
|
|
|
62 |
|
1.21 |
|
Long-term debt |
|
|
413,153 |
|
|
|
2,020 |
|
1.95 |
|
|
|
360,472 |
|
|
|
1,883 |
|
2.07 |
|
Total
interest-bearing liabilities |
|
|
2,579,167 |
|
|
|
6,220 |
|
.96 |
|
|
|
2,803,203 |
|
|
|
10,990 |
|
1.56 |
|
Checking deposits |
|
|
1,174,680 |
|
|
|
|
|
|
|
|
|
957,980 |
|
|
|
|
|
|
|
Other liabilities |
|
|
31,991 |
|
|
|
|
|
|
|
|
|
33,814 |
|
|
|
|
|
|
|
|
|
|
3,785,838 |
|
|
|
|
|
|
|
|
|
3,794,997 |
|
|
|
|
|
|
|
Stockholders' equity |
|
|
397,609 |
|
|
|
|
|
|
|
|
|
394,933 |
|
|
|
|
|
|
|
|
|
$ |
4,183,447 |
|
|
|
|
|
|
|
|
$ |
4,189,930 |
|
|
|
|
|
|
|
Net interest income (1) |
|
|
|
|
$ |
26,572 |
|
|
|
|
|
|
|
$ |
25,633 |
|
|
|
Net interest spread (1) |
|
|
|
|
|
|
|
2.31 |
% |
|
|
|
|
|
|
|
2.09 |
% |
Net interest margin (1) |
|
|
|
|
|
|
|
2.66 |
% |
|
|
|
|
|
|
|
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%.
For More Information Contact:Jay McConie, EVP and
CFO(516) 671-4900, Ext. 7404
First of Long Island (NASDAQ:FLIC)
Historical Stock Chart
From Jun 2024 to Jul 2024
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Historical Stock Chart
From Jul 2023 to Jul 2024