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 quarter and year ended
December 31, 2020. In the highlights that follow, all comparisons
are of the current quarter or year to the same period last year
unless otherwise indicated.
FOURTH QUARTER HIGHLIGHTS
- Net
Income and EPS were $10.5 million and $.44, respectively, compared
to $9.2 million and $.38
- ROA and
ROE were 1.03% and 10.40%, respectively, compared to .88% and
9.32%
- Net
interest margin increased 7 basis points to 2.64% for the fourth
quarter and full year periods
- Cash
Dividends Per Share increased 5.6% to $.19 from $.18
- Cost of
interest-bearing deposits declined 68 basis points to .69% and cost
of interest-bearing liabilities declined 61 basis points to
.88%
-
Restarted the repurchase program acquiring 115,500 shares
at a cost of $2.0 million
- Launched
updated branding initiative and introduced a custom designed
interactive website
2020 HIGHLIGHTS
- Net
Income and EPS were $41.2 million and $1.72, respectively, compared
to $41.6 million and $1.67
- ROA and
ROE were 1.00% and 10.47%, respectively, compared to .99% and
10.61%
Analysis of 2020 Earnings
Net income for 2020 was $41.2 million, a
decrease of $352,000, or .8%, as compared to 2019. The decrease is
mainly due to an increase in the provision for credit losses of
$3.0 million partially offset by increases in net interest income
of $1.9 million, or 1.9%, and noninterest income, before securities
gains, of $933,000, or 8.8%.
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 54 basis
points to .54% and the cost of interest-bearing liabilities
declined 42 basis points to 1.12%. These decreases far outpaced the
18 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 $3.7 million and a favorable shift in the mix of funding
as an increase in average checking deposits of $158.4 million and a
decline in average interest-bearing liabilities of $214.6 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 of
42 basis points and 12 basis points, respectively, was mainly
attributable to an increase in prepayment speeds on mortgage-backed
securities, lower yields available on securities purchases and loan
originations, acceleration of loan prepayments and refinancing on
residential mortgages and downward repricing of corporate bonds.
While the economic impact of the COVID-19 pandemic (“pandemic”)
caused the outstanding balance of loans to shrink during the first
nine months of 2020, outstanding mortgage loans grew $26.7 million,
or 1%, during the fourth quarter. For the year, the
average balance of loans decreased $107 million, or 3.3%, and the
average balance of investment securities declined $52.2 million, or
6.8%. The average balance of loans includes $112.6 million of PPP
loans at a weighted average yield earned in 2020 of 3.25%. Through
year-end 2020, the Bank had $25.2 million, or 15%, of its PPP loans
forgiven by the SBA. The decrease in loans and securities resulted
in a notable increase in cash and cash equivalents on the Balance
Sheet. Presuming economic activity improves and businesses return
to normal operations in our marketplace, we expect mortgage
originations to grow. The mortgage loan pipeline was $74 million at
December 31, 2020.
Net interest margin for the fourth quarter and
full year of 2020 was 2.64%, an increase of 7 basis points 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 and
the deleveraging transaction completed in the third quarter of
2020. However, the current low reinvestment rates on securities and
loans, a highly competitive lending environment, and the elevated
pace of prepayments and refinancings on residential mortgages could
continue to exert downward pressure on net interest income and
margin.
The provision for credit losses was $3.0 million
for 2020 on a current expected credit loss (“CECL”) basis as
compared to $33,000 for 2019 on an incurred loss basis. The $3.0
million provision for the current year was primarily attributable
to the pandemic and includes $4.2 million related to higher
historical loss rates and economic conditions and $2.1 million for
net chargeoffs, partially offset by a decline in the outstanding
loan balance of residential and commercial mortgages. The $33,000
provision for 2019 was driven mainly by net chargeoffs of $1.6
million partially offset by declines in outstanding loans and lower
growth rate trends.
The increase in noninterest income, before
securities gains, of $933,000 is primarily attributable to an
increase in the non-service components of the Bank’s defined
benefit pension plan of $1.0 million and income of $370,000
relating to a transition payment from an independent broker-dealer
for the initial conversion of the Bank’s retail broker and advisory
accounts. Partially offsetting these increases was a decrease in
service charges on deposit accounts of $252,000 due to the
pandemic. Management remains focused on revenue enhancement
initiatives; however, the pandemic has negatively affected most
categories of noninterest income.
Noninterest expense, before debt extinguishment
costs, increased $58,000 in 2020 as compared to 2019. Excluding
executive severance and retirement charges of $2.6 million in 2019,
the increase over 2019 was $2.6 million. The $2.6 million increase
was primarily due to increases in compensation and benefit costs
mainly related to normal salary adjustments and hiring of lending
and credit staff.
The increase in income tax expense of $96,000 is
attributable to an increase in the effective tax rate from 16.5% in
2019 to 16.8% in 2020 as tax-exempt income from municipal
securities and bank-owned life insurance in the current year
declined as a percentage of pre-tax earnings when compared to
2019.
Analysis of Earnings – Fourth Quarter
2020 Versus Fourth Quarter 2019
Net income for the fourth quarter of 2020 was
$10.5 million as compared to $9.2 million for the same quarter of
2019. The increase in earnings for the 2020 quarter was largely
attributed to the executive severance and retirement charges in the
2019 period of $2.6 million partially offset by increases in the
provision for credit losses and income tax expense of $802,000 and
$496,000, respectively. The increase in the provision for credit
losses was mainly due to an increase in historical loss rates. The
increase in income tax expense reflects higher pre-tax earnings in
the current quarter and an increase in the effective tax rate to
16.9%.
Analysis of Earnings – Fourth Quarter
Versus Third Quarter 2020
Net income for the fourth quarter decreased
$238,000 as compared to the third quarter mainly due to a decline
in net interest income of $902,000. The decline in net interest
income was primarily related to the downward repricing of corporate
bonds and an increase in prepayments and refinancing of residential
mortgage loans. These items also contributed to a 2 basis point
decrease in net interest margin to 2.64% for the current quarter.
The decline in net income was also due to a provision for credit
losses of $556,000 in the current quarter related to higher
historical loss rates and mortgage loan growth, partially offset by
improved economic conditions and lower net chargeoffs. Partially
offsetting the impact on net income of these items was the
aforementioned income in the fourth quarter of $370,000 relating to
a transition payment from an independent broker-dealer, a health
insurance premium credit of $431,000 and lower income tax expense
of $220,000 due to declines in the effective tax rate and pre-tax
income.
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, 1.08% at June 30 and September 30 and
1.09% at December 31, 2020. Excluding PPP loans, the reserve
coverage ratio increased 12 basis points during 2020 to 1.13% at
year-end. The increase is mainly due to current and forecasted
economic conditions and higher historical loss rates. Nonaccrual
loans, troubled debt restructurings and loans past due 30 through
89 days remain at low levels. Gross loan chargeoffs and recoveries
were $2.7 million and $584,000, respectively, for the year-ended
December 31, 2020.
Status of COVID-19 Loan
Modifications
During the second and third quarters 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. At December 31, 2020, all
such loans have resumed making payment and are current except for
seven loans that were charged-off totaling $440,000 and one loan
that was past due 30 to 89 days in the amount of $41,000.
Additionally, three loans totaling $862,000 were in nonaccrual
status at year-end.
Capital
The Corporation’s balance sheet remains
positioned for lending and growth with a Leverage Ratio of
approximately 10.0% at December 31, 2020. The Corporation restarted
the share repurchase program during the fourth quarter of 2020
acquiring 115,500 shares at a cost of $2.0 million. We expect to
continue repurchases during 2021.
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.
During the fourth quarter we opened a new branch
in Riverhead, Long Island, successfully introduced an updated
branding initiative including launch advertising and a promotional
campaign, and concurrently rolled out an interactive custom
designed website to better support our customer’s electronic
banking services and digital banking needs. In addition, the Bank
recently partnered with an independent broker-dealer to enhance our
customers' access to a comprehensive set of investment products as
well as wealth management, trust and advisory services.
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. The recent resurgence of the coronavirus and
persistent economic challenges such as the level of short and
long-term interest rates, elevated unemployment and
underemployment, suboptimal gross domestic product measures, higher
vacancies and delinquent rents are particular risks to future
financial performance. Among other things, very low interest rates
have caused an acceleration of residential mortgage loan repayments
and repricing which are expected to continue into 2021.
CONSOLIDATED BALANCE SHEETS
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
12/31/20 |
|
12/31/19 |
|
|
|
|
|
(dollars in thousands) |
Assets: |
|
|
|
|
|
Cash and cash equivalents |
$ |
211,182 |
|
|
$ |
38,968 |
|
Investment securities available-for-sale, at fair value |
|
662,722 |
|
|
|
697,544 |
|
|
|
|
|
|
|
Loans: |
|
|
|
|
|
Commercial and industrial |
|
100,015 |
|
|
|
103,879 |
|
SBA Paycheck Protection Program |
|
139,487 |
|
|
|
— |
|
Secured by real estate: |
|
|
|
|
|
Commercial mortgages |
|
1,421,071 |
|
|
|
1,401,289 |
|
Residential mortgages |
|
1,316,727 |
|
|
|
1,621,419 |
|
Home equity lines |
|
54,005 |
|
|
|
59,231 |
|
Consumer and other |
|
2,149 |
|
|
|
2,431 |
|
|
|
3,033,454 |
|
|
|
3,188,249 |
|
Allowance for credit losses |
|
(33,037 |
) |
|
|
(29,289 |
) |
|
|
3,000,417 |
|
|
|
3,158,960 |
|
|
|
|
|
|
|
Restricted stock, at cost |
|
20,814 |
|
|
|
30,899 |
|
Bank premises and equipment, net |
|
38,830 |
|
|
|
40,017 |
|
Right-of-use asset - operating leases |
|
12,212 |
|
|
|
14,343 |
|
Bank-owned life insurance |
|
85,432 |
|
|
|
83,119 |
|
Pension plan assets, net |
|
20,109 |
|
|
|
18,275 |
|
Deferred income tax benefit |
|
1,375 |
|
|
|
317 |
|
Other assets |
|
16,048 |
|
|
|
15,401 |
|
|
$ |
4,069,141 |
|
|
$ |
4,097,843 |
|
Liabilities: |
|
|
|
|
|
Deposits: |
|
|
|
|
|
Checking |
$ |
1,208,073 |
|
|
$ |
911,978 |
|
Savings, NOW and money market |
|
1,679,161 |
|
|
|
1,720,599 |
|
Time |
|
434,354 |
|
|
|
511,439 |
|
|
|
3,321,588 |
|
|
|
3,144,016 |
|
|
|
|
|
|
|
Short-term borrowings |
|
60,095 |
|
|
|
190,710 |
|
Long-term debt |
|
246,002 |
|
|
|
337,472 |
|
Operating lease liability |
|
13,046 |
|
|
|
15,220 |
|
Accrued expenses and other liabilities |
|
21,292 |
|
|
|
21,317 |
|
|
|
3,662,023 |
|
|
|
3,708,735 |
|
Stockholders'
Equity: |
|
|
|
|
|
Common stock, par value $.10 per share: |
|
|
|
|
|
Authorized, 80,000,000 shares; |
|
|
|
|
|
Issued and outstanding, 23,790,589 and 23,934,632 shares |
|
2,379 |
|
|
|
2,393 |
|
Surplus |
|
105,547 |
|
|
|
111,744 |
|
Retained earnings |
|
295,622 |
|
|
|
274,376 |
|
|
|
403,548 |
|
|
|
388,513 |
|
Accumulated other comprehensive income, net of tax |
|
3,570 |
|
|
|
595 |
|
|
|
407,118 |
|
|
|
389,108 |
|
|
$ |
4,069,141 |
|
|
$ |
4,097,843 |
|
CONSOLIDATED STATEMENTS OF
INCOME(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Twelve Months Ended |
|
Three Months Ended |
|
12/31/20 |
|
12/31/19 |
|
12/31/20 |
|
12/31/19 |
|
|
|
|
|
|
|
|
|
(dollars in thousands) |
Interest and dividend
income: |
|
|
|
|
|
|
|
|
|
|
|
Loans |
$ |
109,492 |
|
$ |
117,171 |
|
$ |
26,143 |
|
$ |
28,789 |
|
Investment securities: |
|
|
|
|
|
|
|
|
|
|
|
Taxable |
|
11,873 |
|
|
15,212 |
|
|
1,901 |
|
|
3,486 |
|
Nontaxable |
|
9,851 |
|
|
11,467 |
|
|
2,331 |
|
|
2,648 |
|
|
|
131,216 |
|
|
143,850 |
|
|
30,375 |
|
|
34,923 |
|
Interest expense: |
|
|
|
|
|
|
|
|
|
|
|
Savings, NOW and money market deposits |
|
9,097 |
|
|
18,563 |
|
|
1,151 |
|
|
4,707 |
|
Time deposits |
|
10,977 |
|
|
14,494 |
|
|
2,490 |
|
|
3,133 |
|
Short-term borrowings |
|
1,574 |
|
|
3,261 |
|
|
355 |
|
|
692 |
|
Long-term debt |
|
7,540 |
|
|
7,363 |
|
|
1,363 |
|
|
1,805 |
|
|
|
29,188 |
|
|
43,681 |
|
|
5,359 |
|
|
10,337 |
|
Net interest income |
|
102,028 |
|
|
100,169 |
|
|
25,016 |
|
|
24,586 |
|
Provision (credit) for credit
losses |
|
3,006 |
|
|
33 |
|
|
556 |
|
|
(246 |
) |
Net interest income after provision (credit) for credit losses |
|
99,022 |
|
|
100,136 |
|
|
24,460 |
|
|
24,832 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Noninterest income: |
|
|
|
|
|
|
|
|
|
|
|
Investment Management Division income |
|
2,180 |
|
|
2,010 |
|
|
560 |
|
|
508 |
|
Service charges on deposit accounts |
|
2,962 |
|
|
3,214 |
|
|
695 |
|
|
893 |
|
Net gains on sales of securities |
|
2,556 |
|
|
14 |
|
|
— |
|
|
14 |
|
Other |
|
6,388 |
|
|
5,373 |
|
|
1,886 |
|
|
1,315 |
|
|
|
14,086 |
|
|
10,611 |
|
|
3,141 |
|
|
2,730 |
|
Noninterest expense: |
|
|
|
|
|
|
|
|
|
|
|
Salaries and employee benefits |
|
37,288 |
|
|
37,111 |
|
|
9,010 |
|
|
10,575 |
|
Occupancy and equipment |
|
12,370 |
|
|
11,904 |
|
|
3,046 |
|
|
3,192 |
|
Debt extinguishment |
|
2,559 |
|
|
— |
|
|
— |
|
|
— |
|
Other |
|
11,364 |
|
|
11,949 |
|
|
2,868 |
|
|
2,956 |
|
|
|
63,581 |
|
|
60,964 |
|
|
14,924 |
|
|
16,723 |
|
Income before income taxes |
|
49,527 |
|
|
49,783 |
|
|
12,677 |
|
|
10,839 |
|
Income tax expense |
|
8,324 |
|
|
8,228 |
|
|
2,148 |
|
|
1,652 |
|
Net income |
$ |
41,203 |
|
$ |
41,555 |
|
$ |
10,529 |
|
$ |
9,187 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Share and Per Share Data: |
|
|
|
|
|
|
|
|
|
|
|
Weighted Average Common Shares |
|
23,859,119 |
|
|
24,663,726 |
|
|
23,833,485 |
|
|
24,094,474 |
|
Dilutive stock options and restricted stock units |
|
53,915 |
|
|
184,800 |
|
|
99,293 |
|
|
207,733 |
|
|
|
23,913,034 |
|
|
24,848,526 |
|
|
23,932,778 |
|
|
24,302,207 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic EPS |
|
$1.73 |
|
|
$1.68 |
|
|
$0.44 |
|
|
$0.38 |
|
Diluted EPS |
|
1.72 |
|
|
1.67 |
|
|
0.44 |
|
|
0.38 |
|
Cash Dividends Declared per share |
|
0.74 |
|
|
0.70 |
|
|
0.19 |
|
|
0.18 |
|
FINANCIAL RATIOS |
(Unaudited) |
|
|
|
|
|
|
|
|
|
|
|
|
ROA |
1.00 |
% |
|
.99 |
% |
|
1.03 |
% |
|
.88 |
% |
ROE |
10.47 |
% |
|
10.61 |
% |
|
10.40 |
% |
|
9.32 |
% |
Net Interest Margin |
2.64 |
% |
|
2.57 |
% |
|
2.64 |
% |
|
2.57 |
% |
Dividend Payout Ratio |
43.02 |
% |
|
41.92 |
% |
|
43.18 |
% |
|
47.37 |
% |
PROBLEM AND POTENTIAL PROBLEM LOANS AND
ASSETS(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
12/31/20 |
|
|
12/31/19 |
|
|
|
|
|
|
|
|
|
(dollars in thousands) |
|
|
|
|
|
|
|
|
|
Loans, excluding troubled debt
restructurings: |
|
|
|
|
|
|
|
Past due 30 through 89 days |
$ |
1,422 |
|
|
$ |
2,928 |
|
Past due 90 days or more and still accruing |
|
— |
|
|
|
— |
|
Nonaccrual |
|
628 |
|
|
|
423 |
|
|
|
2,050 |
|
|
|
3,351 |
|
Troubled debt
restructurings: |
|
|
|
|
|
|
|
Performing according to their modified terms |
|
815 |
|
|
|
1,070 |
|
Past due 30 through 89 days |
|
— |
|
|
|
— |
|
Past due 90 days or more and still accruing |
|
— |
|
|
|
— |
|
Nonaccrual |
|
494 |
|
|
|
465 |
|
|
|
1,309 |
|
|
|
1,535 |
|
Total past due, nonaccrual and
restructured loans: |
|
|
|
|
|
|
|
Restructured and performing according to their modified terms |
|
815 |
|
|
|
1,070 |
|
Past due 30 through 89 days |
|
1,422 |
|
|
|
2,928 |
|
Past due 90 days or more and still accruing |
|
— |
|
|
|
— |
|
Nonaccrual |
|
1,122 |
|
|
|
888 |
|
|
|
3,359 |
|
|
|
4,886 |
|
Other real estate owned |
|
— |
|
|
|
— |
|
|
$ |
3,359 |
|
|
$ |
4,886 |
|
|
|
|
|
|
|
|
|
Allowance for loan losses |
$ |
33,037 |
|
|
$ |
29,289 |
|
Allowance for loan losses as a
percentage of total loans |
|
1.09 |
% |
|
|
0.92 |
% |
Allowance for loan losses as a
multiple of nonaccrual loans |
|
29.4 |
x |
|
|
33.0 |
x |
AVERAGE BALANCE SHEET, INTEREST RATES AND
INTEREST DIFFERENTIAL(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Twelve Months Ended December 31, |
|
|
2020 |
|
2019 |
(dollars in thousands) |
|
Average Balance |
|
Interest/ Dividends |
|
Average Rate |
|
Average Balance |
|
Interest/ Dividends |
|
Average Rate |
|
Assets: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest-earning bank balances |
|
$ |
135,475 |
|
|
$ |
212 |
|
.16 |
% |
|
$ |
29,561 |
|
|
$ |
638 |
|
2.16 |
% |
|
Investment securities: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Taxable |
|
|
346,956 |
|
|
|
11,661 |
|
3.36 |
|
|
|
367,157 |
|
|
|
14,574 |
|
3.97 |
|
|
Nontaxable (1) |
|
|
373,500 |
|
|
|
12,470 |
|
3.34 |
|
|
|
405,454 |
|
|
|
14,515 |
|
3.58 |
|
|
Loans (1) |
|
|
3,110,512 |
|
|
|
109,498 |
|
3.52 |
|
|
|
3,217,530 |
|
|
|
117,177 |
|
3.64 |
|
|
Total interest-earning
assets |
|
|
3,966,443 |
|
|
|
133,841 |
|
3.37 |
|
|
|
4,019,702 |
|
|
|
146,904 |
|
3.65 |
|
|
Allowance for credit
losses |
|
|
(33,180 |
) |
|
|
|
|
|
|
|
|
(30,080 |
) |
|
|
|
|
|
|
|
Net
interest-earning assets |
|
|
3,933,263 |
|
|
|
|
|
|
|
|
|
3,989,622 |
|
|
|
|
|
|
|
|
Cash and due from banks |
|
|
33,092 |
|
|
|
|
|
|
|
|
|
36,482 |
|
|
|
|
|
|
|
|
Premises and equipment,
net |
|
|
39,403 |
|
|
|
|
|
|
|
|
|
40,894 |
|
|
|
|
|
|
|
|
Other assets |
|
|
135,109 |
|
|
|
|
|
|
|
|
|
127,357 |
|
|
|
|
|
|
|
|
|
|
$ |
4,140,867 |
|
|
|
|
|
|
|
|
$ |
4,194,355 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Liabilities
and Stockholders' Equity: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Savings, NOW & money
market deposits |
|
$ |
1,683,290 |
|
|
|
9,097 |
|
.54 |
|
|
$ |
1,721,604 |
|
|
|
18,563 |
|
1.08 |
|
|
Time deposits |
|
|
473,720 |
|
|
|
10,977 |
|
2.32 |
|
|
|
613,166 |
|
|
|
14,494 |
|
2.36 |
|
|
Total
interest-bearing deposits |
|
|
2,157,010 |
|
|
|
20,074 |
|
.93 |
|
|
|
2,334,770 |
|
|
|
33,057 |
|
1.42 |
|
|
Short-term borrowings |
|
|
75,805 |
|
|
|
1,574 |
|
2.08 |
|
|
|
137,546 |
|
|
|
3,261 |
|
2.37 |
|
|
Long-term debt |
|
|
382,134 |
|
|
|
7,540 |
|
1.97 |
|
|
|
357,239 |
|
|
|
7,363 |
|
2.06 |
|
|
Total
interest-bearing liabilities |
|
|
2,614,949 |
|
|
|
29,188 |
|
1.12 |
|
|
|
2,829,555 |
|
|
|
43,681 |
|
1.54 |
|
|
Checking deposits |
|
|
1,100,307 |
|
|
|
|
|
|
|
|
|
941,929 |
|
|
|
|
|
|
|
|
Other liabilities |
|
|
31,949 |
|
|
|
|
|
|
|
|
|
31,258 |
|
|
|
|
|
|
|
|
|
|
|
3,747,205 |
|
|
|
|
|
|
|
|
|
3,802,742 |
|
|
|
|
|
|
|
|
Stockholders' equity |
|
|
393,662 |
|
|
|
|
|
|
|
|
|
391,613 |
|
|
|
|
|
|
|
|
|
|
$ |
4,140,867 |
|
|
|
|
|
|
|
|
$ |
4,194,355 |
|
|
|
|
|
|
|
|
Net interest income (1) |
|
|
|
|
$ |
104,653 |
|
|
|
|
|
|
|
$ |
103,223 |
|
|
|
|
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 December 31, |
|
|
|
2020 |
|
2019 |
|
(dollars in thousands) |
|
Average Balance |
|
Interest/ Dividends |
|
Average Rate |
|
Average Balance |
|
Interest/ Dividends |
|
Average Rate |
|
Assets: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest-earning bank balances |
|
$ |
205,452 |
|
|
$ |
53 |
|
.10 |
% |
|
$ |
26,427 |
|
|
$ |
108 |
|
1.62 |
% |
|
Investment securities: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Taxable |
|
|
318,496 |
|
|
|
1,848 |
|
2.32 |
|
|
|
360,130 |
|
|
|
3,378 |
|
3.75 |
|
|
Nontaxable (1) |
|
|
367,334 |
|
|
|
2,951 |
|
3.21 |
|
|
|
387,948 |
|
|
|
3,352 |
|
3.46 |
|
|
Loans (1) |
|
|
3,002,622 |
|
|
|
26,145 |
|
3.48 |
|
|
|
3,175,858 |
|
|
|
28,790 |
|
3.63 |
|
|
Total interest-earning
assets |
|
|
3,893,904 |
|
|
|
30,997 |
|
3.18 |
|
|
|
3,950,363 |
|
|
|
35,628 |
|
3.61 |
|
|
Allowance for credit
losses |
|
|
(32,866 |
) |
|
|
|
|
|
|
|
|
(29,714 |
) |
|
|
|
|
|
|
|
Net
interest-earning assets |
|
|
3,861,038 |
|
|
|
|
|
|
|
|
|
3,920,649 |
|
|
|
|
|
|
|
|
Cash and due from banks |
|
|
32,944 |
|
|
|
|
|
|
|
|
|
34,635 |
|
|
|
|
|
|
|
|
Premises and equipment,
net |
|
|
38,849 |
|
|
|
|
|
|
|
|
|
40,388 |
|
|
|
|
|
|
|
|
Other assets |
|
|
134,387 |
|
|
|
|
|
|
|
|
|
126,736 |
|
|
|
|
|
|
|
|
|
|
$ |
4,067,218 |
|
|
|
|
|
|
|
|
$ |
4,122,408 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Liabilities
and Stockholders' Equity: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Savings, NOW & money
market deposits |
|
$ |
1,671,119 |
|
|
|
1,151 |
|
.27 |
|
|
$ |
1,753,114 |
|
|
|
4,707 |
|
1.07 |
|
|
Time deposits |
|
|
436,607 |
|
|
|
2,490 |
|
2.27 |
|
|
|
516,932 |
|
|
|
3,133 |
|
2.40 |
|
|
Total
interest-bearing deposits |
|
|
2,107,726 |
|
|
|
3,641 |
|
.69 |
|
|
|
2,270,046 |
|
|
|
7,840 |
|
1.37 |
|
|
Short-term borrowings |
|
|
58,817 |
|
|
|
355 |
|
2.40 |
|
|
|
138,869 |
|
|
|
692 |
|
1.98 |
|
|
Long-term debt |
|
|
268,600 |
|
|
|
1,363 |
|
2.02 |
|
|
|
343,733 |
|
|
|
1,805 |
|
2.08 |
|
|
Total
interest-bearing liabilities |
|
|
2,435,143 |
|
|
|
5,359 |
|
.88 |
|
|
|
2,752,648 |
|
|
|
10,337 |
|
1.49 |
|
|
Checking deposits |
|
|
1,197,005 |
|
|
|
|
|
|
|
|
|
945,524 |
|
|
|
|
|
|
|
|
Other liabilities |
|
|
32,160 |
|
|
|
|
|
|
|
|
|
33,342 |
|
|
|
|
|
|
|
|
|
|
|
3,664,308 |
|
|
|
|
|
|
|
|
|
3,731,514 |
|
|
|
|
|
|
|
|
Stockholders' equity |
|
|
402,910 |
|
|
|
|
|
|
|
|
|
390,894 |
|
|
|
|
|
|
|
|
|
|
$ |
4,067,218 |
|
|
|
|
|
|
|
|
$ |
4,122,408 |
|
|
|
|
|
|
|
|
Net interest income (1) |
|
|
|
|
$ |
25,638 |
|
|
|
|
|
|
|
$ |
25,291 |
|
|
|
|
Net interest spread (1) |
|
|
|
|
|
|
|
2.30 |
% |
|
|
|
|
|
|
|
2.12 |
% |
|
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%.
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 annual report on Form 10-K for the year ended
December 31, 2020. The Form 10-K will be available through the
Bank’s website at www.fnbli.com on or about March 12, 2021 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 |
First of Long Island (NASDAQ:FLIC)
Historical Stock Chart
From Jun 2024 to Jul 2024
First of Long Island (NASDAQ:FLIC)
Historical Stock Chart
From Jul 2023 to Jul 2024