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
nine months ended September 30, 2022. 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 $12.5 million and $.55, respectively, versus $11.4
million and $.48
- ROA and ROE
were 1.14% and 12.84%, respectively, compared to 1.08% and
10.71%
- Net
interest margin was 2.97% versus 2.71%
- Repurchased 209,579 shares at
a cost of $4.1 million
NINE MONTH HIGHLIGHTS
- Net Income
and EPS were $37.0 million and $1.61, respectively, versus $34.1
million and $1.43
- ROA and ROE
were 1.17% and 12.57%, respectively, compared to 1.09% and
10.96%
- Net interest margin was 2.95%
versus 2.70%
Analysis of Earnings – Nine Months Ended
September 30, 2022
Net income for the first nine months of 2022 was
$37.0 million, an increase of $3.0 million, or 8.7%, versus the
same period last year. The increase is primarily due to growth in
net interest income of $8.5 million, or 10.7%, and noninterest
income of $887,000, or 10.3%, excluding 2021 securities gains.
These items were partially offset by increases in the provision for
credit losses of $5.3 million, noninterest expense of $193,000 and
income tax expense of $353,000.
The increase in net interest income reflects
growth in interest income on loans of $6.8 million due to an
increase in average loans outstanding of $283.9 million to $3.3
billion at September 30, 2022 and a decline in interest expense of
$2.0 million related to the maturity and termination of the Bank’s
interest rate swap in April 2022. Also contributing to the increase
was a favorable shift in the mix of funding as an increase in
average checking deposits of $136.2 million, or 10.4%, and a
decline in average interest-bearing liabilities of $59.2 million,
or 2.4%, resulted in average checking deposits comprising a larger
portion of total funding. While the average cost of
interest-bearing liabilities declined 10 basis points (“bps”) to
.61% when comparing the nine-month periods, current funding costs
are increasing due to higher market interest rates and
competition.
Interest income on PPP loans declined $4.0
million to $1.1 million when comparing the first nine months of
2022 to the same period last year. Excluding PPP income, interest
income on loans would have increased $10.8 million and the loan
portfolio yield would have increased by 1 bp.
During the third quarter of 2022, we originated
$130 million of loans with a weighted average rate of approximately
4.51% which includes $79 million of commercial mortgages at a
weighted average rate of 4.62%. The mortgage loan pipeline was $68
million with a weighted average rate of 5.51% at September 30,
2022. The amount of originations during the quarter and the
pipeline at quarter-end reflect lower demand for loans in the
marketplace due to higher interest rates.
Net interest margin for the first nine months of
2022 was 2.95% versus 2.70% for the 2021 period which includes 9
bps and 14 bps, respectively, related to prepayment fees, late fees
and PPP income. Significant increases in interest rates due to
inflation are expected to adversely affect net interest income and
margin which are largely dependent on changes in the yield curve
and competitive and economic conditions.
The provision for credit losses increased $5.3
million when comparing the nine-month periods from a credit of $3.1
million in the 2021 period to a charge of $2.2 million in the 2022
period. The provision for the current nine-month period was mainly
due to an increase in outstanding mortgage loans and charge-offs,
partially offset by lower historical loss rates and changes in
current and forecasted conditions.
The increase in noninterest income of $887,000,
excluding $606,000 of gains on sales of securities in 2021, is
primarily attributable to a final transition payment of $477,000
for the conversion of the Bank’s retail broker and advisory
accounts. The increase also includes higher fees from merchant card
services of $387,000 and income from bank-owned life insurance
(“BOLI”) of $484,000. These amounts were partially offset by a
decrease in investment services income of $610,000 as the shift to
an outside service provider resulted in a revenue sharing agreement
and less assets under management.
Noninterest expense increased $193,000 when
comparing the nine-month periods. Noninterest expense in the 2021
period included charges of $1.2 million related to the 2021 branch
optimization strategy. Excluding the branch optimization charges,
the increase in operating expenses totaled $1.4 million which was
attributable to higher salaries and benefits expense of $724,000,
occupancy and equipment expense of $322,000 and other expense of
$376,000. The salary and benefits increase includes recruiting of
seasoned banking professionals, mid-year salary increases in 2022
and higher incentive and stock-based compensation expenses. The
occupancy and equipment increase includes the costs of new branch
locations on the east-end of Long Island and new corporate office
space in Melville, N.Y. The increase in other expense includes
higher marketing expense, relocation costs and other costs of
operating the business.
Income tax expense increased $353,000 and the
effective tax rate decreased from 20.2% to 19.5% when comparing the
nine-month periods. The decrease in the effective tax rate is
mainly due to the purchase of $20 million of BOLI in December 2021
and being in a capital tax position for New York State (“NYS”) and
New York City (“NYC”) purposes. The increase in income tax expense
is due to higher pre-tax earnings in the current nine-month period
as compared to the 2021 period partially offset by the lower
effective tax rate.
Analysis of Earnings – Third Quarter 2022
Versus Third Quarter 2021
Net income for the third quarter of 2022 of
$12.5 million increased $1.0 million, or 9.1%, from $11.4 million
earned in the same quarter of last year. The increase is mainly due
to growth in net interest income of $3.7 million, or 13.7%,
partially offset by an increase in the provision for credit losses
of $2.5 million. The increase also reflects the aforementioned
charges of $1.2 million in the 2021 quarter.
The increase in net interest income was
primarily due to growth in interest income on loans of $4.1 million
driven by higher outstanding balances and yields, partially offset
by higher interest expense due to increases in the average balance
and cost of interest-bearing liabilities of $75.1 million and 14
bps, respectively, as depositors increasingly seek higher returns
due to rising market interest rates and competition. The increase
in the provision for credit losses was primarily due to charges for
current and forecasted economic conditions and net chargeoffs of
$607,000 on five loans sold during the 2022 quarter. Also
offsetting the increase in net interest income was an increase in
salaries and benefits expense of $780,000 due to the same reasons
discussed above with respect to the nine-month periods.
Analysis of Earnings – Third Quarter
Versus Second Quarter 2022
Net income for the third quarter of 2022 was
essentially unchanged as compared to the second quarter. Net
interest income increased $563,000 substantially driven by higher
average outstanding loan balances and higher loan yields. This
increase was partially offset by higher interest expense due to
increases in the average balance and cost of interest-bearing
liabilities of $77.4 million and 21 bps, respectively, reflecting
an increasing cost of funding the Bank’s assets. The provision for
credit losses increased $363,000 when comparing the quarterly
periods mainly due to economic conditions and higher net
chargeoffs, partially offset by a decrease in loan originations in
the third quarter. Salaries and employee benefits increased
$547,000 due to lower deferred compensation and the same reasons
discussed above with respect to the nine-month periods. Income tax
expense decreased $345,000 due to a decrease in the effective tax
rate from 19.8% in the second quarter to 18.0% in the third quarter
and a decline in pre-tax earnings. The effective tax rate decreased
because of the aforementioned NYS and NYC tax benefits.
Asset Quality
The Bank’s allowance for credit losses to total
loans (reserve coverage ratio) was .94% on September 30, 2022 as
compared to .93% at June 30, 2022 and .96% at December 31, 2021.
The increase in the reserve coverage ratio during the third quarter
was mainly due to current and forecasted economic conditions.
Nonaccrual and modified loans and loans past due 30 through 89 days
are at very low levels.
Capital
The Corporation’s capital position remains
strong with a Leverage Ratio of approximately 9.75% on September
30, 2022. We repurchased 698,476 shares of common stock during the
first nine months of 2022 at a cost of $13.9 million. We expect to
continue common stock repurchases during the fourth quarter.
The Corporation’s ROE was 12.84% and 12.57% for
the three-month and nine-month periods ended September 30, 2022,
respectively, an increase when compared to 10.71% and 10.96%,
respectively, for the same periods in 2021. The increases in ROE
were due to higher net income for both periods as well as an
increase in accumulated other comprehensive losses due to a
significant increase in the net unrealized loss in the
available-for-sale securities portfolio from higher interest rates.
The losses in the available-for-sale securities portfolio, which
reduced the average balance of stockholders’ equity, accounted for
1.42% and 1.00%, respectively, of the improvement in the ROE ratio
when compared to the prior year periods. The unrealized loss also
accounted for a $2.86 reduction in the Corporation’s book value per
share of $15.87 at September 30, 2022. Based on the Corporation’s
market value per share at September 30, 2022 of $17.24, the
dividend yield is 4.9%.
Key Initiatives and
Milestones
We continue focusing on strategic initiatives
supporting the growth of our balance sheet with a profitable
relationship banking business. Such initiatives include improving
the quality of technology through continuing digital enhancements
and IT system upgrades, optimizing our branch network across a
larger geography, using new branding and “CommunityFirst” focus to
improve name recognition, enhancing our website and social media
presence including the promotion of FirstInvestments, and
recruitment of experienced banking professionals to support our
growth and technology initiatives. We also continue to focus on the
areas of cybersecurity, environmental, social and governance
practices.
October 1, 2022 marked the Bank’s 95th
anniversary. Since 1927, we have been helping our clients succeed.
After 95 years, we continue to be an important part of the
communities we operate in and were recently recognized in the
annual Piper Sandler Small-All Star Class of 2022 as one of the top
35 performing small-cap banks and thrifts in the country.
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 current economic environment,
characterized by a high rate of inflation and rising interest
rates, presents significant financial and operational challenges
for the Corporation, its customers and the communities it serves.
These challenges are expected to adversely affect the Corporation’s
results of operations and financial condition. 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, 2022. The Form 10-Q will be available through
the Bank’s website at www.fnbli.com on or about November 3, 2022,
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)
|
|
|
|
|
|
|
9/30/22 |
|
12/31/21 |
|
|
(dollars in thousands) |
Assets: |
|
|
|
|
|
|
Cash and cash equivalents |
|
$ |
62,210 |
|
|
$ |
43,675 |
|
Investment securities available-for-sale, at fair value |
|
|
664,221 |
|
|
|
734,318 |
|
|
|
|
|
|
|
|
Loans: |
|
|
|
|
|
|
Commercial and industrial |
|
|
113,066 |
|
|
|
120,920 |
|
Secured by real estate: |
|
|
|
|
|
|
Commercial mortgages |
|
|
1,942,214 |
|
|
|
1,736,612 |
|
Residential mortgages |
|
|
1,233,005 |
|
|
|
1,202,374 |
|
Home equity lines |
|
|
43,276 |
|
|
|
44,139 |
|
Consumer and other |
|
|
1,642 |
|
|
|
991 |
|
|
|
|
3,333,203 |
|
|
|
3,105,036 |
|
Allowance for credit losses |
|
|
(31,347 |
) |
|
|
(29,831 |
) |
|
|
|
3,301,856 |
|
|
|
3,075,205 |
|
|
|
|
|
|
|
|
Restricted stock, at cost |
|
|
21,601 |
|
|
|
21,524 |
|
Bank premises and equipment, net |
|
|
37,614 |
|
|
|
37,523 |
|
Right of use asset - operating leases |
|
|
23,334 |
|
|
|
8,438 |
|
Bank-owned life insurance |
|
|
110,083 |
|
|
|
107,831 |
|
Pension plan assets, net |
|
|
19,193 |
|
|
|
19,097 |
|
Deferred income tax benefit |
|
|
32,675 |
|
|
|
3,987 |
|
Other assets |
|
|
18,443 |
|
|
|
17,191 |
|
|
|
$ |
4,291,230 |
|
|
$ |
4,068,789 |
|
Liabilities: |
|
|
|
|
|
|
Deposits: |
|
|
|
|
|
|
Checking |
|
$ |
1,397,166 |
|
|
$ |
1,400,998 |
|
Savings, NOW and money market |
|
|
1,784,964 |
|
|
|
1,685,410 |
|
Time |
|
|
404,627 |
|
|
|
228,837 |
|
|
|
|
3,586,757 |
|
|
|
3,315,245 |
|
|
|
|
|
|
|
|
Short-term borrowings |
|
|
40,000 |
|
|
|
125,000 |
|
Long-term debt |
|
|
264,835 |
|
|
|
186,322 |
|
Operating lease liability |
|
|
25,206 |
|
|
|
11,259 |
|
Accrued expenses and other liabilities |
|
|
14,985 |
|
|
|
17,151 |
|
|
|
|
3,931,783 |
|
|
|
3,654,977 |
|
Stockholders'
Equity: |
|
|
|
|
|
|
Common stock, par value $.10 per share: |
|
|
|
|
|
|
Authorized, 80,000,000 shares; |
|
|
|
|
|
|
Issued and outstanding, 22,644,626 and 23,240,596 shares |
|
|
2,264 |
|
|
|
2,324 |
|
Surplus |
|
|
81,470 |
|
|
|
93,480 |
|
Retained earnings |
|
|
343,406 |
|
|
|
320,321 |
|
|
|
|
427,140 |
|
|
|
416,125 |
|
Accumulated other comprehensive loss, net of tax |
|
|
(67,693 |
) |
|
|
(2,313 |
) |
|
|
|
359,447 |
|
|
|
413,812 |
|
|
|
$ |
4,291,230 |
|
|
$ |
4,068,789 |
|
CONSOLIDATED STATEMENTS OF
INCOME(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Nine Months Ended |
|
Three Months Ended |
|
|
|
9/30/22 |
|
9/30/21 |
|
9/30/22 |
|
9/30/21 |
|
|
|
(dollars in thousands) |
|
Interest and dividend
income: |
|
|
|
|
|
|
|
|
|
|
|
|
|
Loans |
|
$ |
|
86,181 |
|
$ |
|
79,431 |
|
|
$ |
30,032 |
|
$ |
25,975 |
|
|
Investment securities: |
|
|
|
|
|
|
|
|
|
|
|
|
|
Taxable |
|
|
|
6,556 |
|
|
|
6,269 |
|
|
|
2,751 |
|
|
2,191 |
|
|
Nontaxable |
|
|
|
6,013 |
|
|
|
6,535 |
|
|
|
2,051 |
|
|
2,073 |
|
|
|
|
|
|
98,750 |
|
|
|
92,235 |
|
|
|
34,834 |
|
|
30,239 |
|
|
Interest expense: |
|
|
|
|
|
|
|
|
|
|
|
|
|
Savings, NOW and money market deposits |
|
|
|
3,263 |
|
|
|
3,451 |
|
|
|
1,699 |
|
|
1,191 |
|
|
Time deposits |
|
|
|
3,474 |
|
|
|
4,818 |
|
|
|
1,374 |
|
|
921 |
|
|
Short-term borrowings |
|
|
|
775 |
|
|
|
1,062 |
|
|
|
91 |
|
|
362 |
|
|
Long-term debt |
|
|
|
3,280 |
|
|
|
3,468 |
|
|
|
1,412 |
|
|
1,157 |
|
|
|
|
|
|
10,792 |
|
|
|
12,799 |
|
|
|
4,576 |
|
|
3,631 |
|
|
Net interest income |
|
|
|
87,958 |
|
|
|
79,436 |
|
|
|
30,258 |
|
|
26,608 |
|
|
Provision (credit) for credit
losses |
|
|
|
2,248 |
|
|
|
(3,058 |
) |
|
|
1,089 |
|
|
(1,449 |
) |
|
Net interest income after provision (credit) for credit losses |
|
|
|
85,710 |
|
|
|
82,494 |
|
|
|
29,169 |
|
|
28,057 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Noninterest income: |
|
|
|
|
|
|
|
|
|
|
|
|
|
Bank-owned life insurance |
|
|
|
2,253 |
|
|
|
1,769 |
|
|
|
763 |
|
|
599 |
|
|
Service charges on deposit accounts |
|
|
|
2,346 |
|
|
|
2,170 |
|
|
|
840 |
|
|
752 |
|
|
Net gains on sales of securities |
|
|
|
— |
|
|
|
606 |
|
|
|
— |
|
|
— |
|
|
Other |
|
|
|
4,896 |
|
|
|
4,669 |
|
|
|
1,444 |
|
|
1,504 |
|
|
|
|
|
|
9,495 |
|
|
|
9,214 |
|
|
|
3,047 |
|
|
2,855 |
|
|
Noninterest expense: |
|
|
|
|
|
|
|
|
|
|
|
|
|
Salaries and employee benefits |
|
|
|
30,264 |
|
|
|
29,663 |
|
|
|
10,528 |
|
|
9,748 |
|
|
Occupancy and equipment |
|
|
|
9,702 |
|
|
|
10,446 |
|
|
|
3,395 |
|
|
4,102 |
|
|
Other |
|
|
|
9,246 |
|
|
|
8,910 |
|
|
|
3,091 |
|
|
2,891 |
|
|
|
|
|
|
49,212 |
|
|
|
49,019 |
|
|
|
17,014 |
|
|
16,741 |
|
|
Income before income taxes |
|
|
|
45,993 |
|
|
|
42,689 |
|
|
|
15,202 |
|
|
14,171 |
|
|
Income tax expense |
|
|
|
8,965 |
|
|
|
8,612 |
|
|
|
2,738 |
|
|
2,749 |
|
|
Net income |
|
$ |
|
37,028 |
|
$ |
|
34,077 |
|
|
$ |
12,464 |
|
$ |
11,422 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Share and Per Share Data: |
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted Average Common Shares |
|
|
|
22,973,209 |
|
|
|
23,720,578 |
|
|
|
22,746,302 |
|
|
23,646,172 |
|
|
Dilutive restricted stock units |
|
|
|
89,817 |
|
|
|
97,291 |
|
|
|
99,208 |
|
|
112,074 |
|
|
|
|
|
|
23,063,026 |
|
|
|
23,817,869 |
|
|
|
22,845,510 |
|
|
23,758,246 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic EPS |
|
|
$1.61 |
|
|
$1.44 |
|
|
|
$.55 |
|
|
$.48 |
|
Diluted EPS |
|
|
$1.61 |
|
|
$1.43 |
|
|
|
$.55 |
|
|
$.48 |
|
Cash Dividends Declared per share |
|
|
$.61 |
|
|
|
$.58 |
|
|
|
$.21 |
|
|
$.20 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
FINANCIAL RATIOS |
(Unaudited) |
ROA |
|
|
|
1.17 |
% |
|
|
1.09 |
|
% |
|
1.14 |
% |
|
1.08 |
|
% |
ROE |
|
|
|
12.57 |
% |
|
|
10.96 |
|
% |
|
12.84 |
% |
|
10.71 |
|
% |
Net Interest Margin |
|
|
|
2.95 |
% |
|
|
2.70 |
|
% |
|
2.97 |
% |
|
2.71 |
|
% |
Dividend Payout Ratio |
|
|
|
37.89 |
% |
|
|
40.56 |
|
% |
|
38.18 |
% |
|
41.67 |
|
% |
|
PROBLEM AND POTENTIAL PROBLEM LOANS AND
ASSETS(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
09/30/22 |
|
|
12/31/21 |
|
|
|
(dollars in thousands) |
|
|
|
|
|
|
|
|
|
|
Loans including modifications
to borrowers experiencing financial difficulty: |
|
|
|
|
|
|
|
|
Modified and performing according to their modified terms |
|
$ |
485 |
|
|
$ |
554 |
|
Past due 30 through 89 days |
|
|
526 |
|
|
|
460 |
|
Past due 90 days or more and still accruing |
|
|
— |
|
|
|
— |
|
Nonaccrual |
|
|
— |
|
|
|
1,235 |
|
|
|
|
1,011 |
|
|
|
2,249 |
|
Other real estate owned |
|
|
— |
|
|
|
— |
|
|
|
$ |
1,011 |
|
|
$ |
2,249 |
|
|
|
|
|
|
|
|
|
|
Allowance for credit
losses |
|
$ |
31,347 |
|
|
$ |
29,831 |
|
Allowance for credit losses as
a percentage of total loans |
|
|
.94 |
% |
|
|
.96 |
% |
Allowance for credit losses as
a multiple of nonaccrual loans |
|
|
— |
|
|
|
24.2 |
x |
|
|
|
|
|
|
|
|
|
AVERAGE BALANCE SHEET, INTEREST RATES AND
INTEREST DIFFERENTIAL(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Nine Months Ended September 30, |
|
|
2022 |
|
2021 |
|
|
Average |
|
Interest/ |
|
Average |
|
Average |
|
Interest/ |
|
Average |
(dollars in thousands) |
|
Balance |
|
Dividends |
|
Rate |
|
Balance |
|
Dividends |
|
Rate |
Assets: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest-earning bank balances |
|
$ |
35,373 |
|
|
$ |
314 |
|
1.19 |
% |
|
$ |
217,501 |
|
|
$ |
204 |
|
.13 |
% |
Investment securities: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Taxable (1) |
|
|
438,475 |
|
|
|
6,242 |
|
1.90 |
|
|
|
456,244 |
|
|
|
6,065 |
|
1.77 |
|
Nontaxable (1) (2) |
|
|
317,802 |
|
|
|
7,611 |
|
3.19 |
|
|
|
351,254 |
|
|
|
8,272 |
|
3.14 |
|
Loans (1) (2) |
|
|
3,261,521 |
|
|
|
86,185 |
|
3.52 |
|
|
|
2,977,583 |
|
|
|
79,435 |
|
3.56 |
|
Total interest-earning
assets |
|
|
4,053,171 |
|
|
|
100,352 |
|
3.30 |
|
|
|
4,002,582 |
|
|
|
93,976 |
|
3.13 |
|
Allowance for credit
losses |
|
|
(30,332 |
) |
|
|
|
|
|
|
|
|
(31,905 |
) |
|
|
|
|
|
|
Net interest-earning
assets |
|
|
4,022,839 |
|
|
|
|
|
|
|
|
|
3,970,677 |
|
|
|
|
|
|
|
Cash and due from banks |
|
|
34,041 |
|
|
|
|
|
|
|
|
|
34,026 |
|
|
|
|
|
|
|
Premises and equipment,
net |
|
|
37,967 |
|
|
|
|
|
|
|
|
|
38,362 |
|
|
|
|
|
|
|
Other assets |
|
|
140,114 |
|
|
|
|
|
|
|
|
|
132,527 |
|
|
|
|
|
|
|
|
|
$ |
4,234,961 |
|
|
|
|
|
|
|
|
$ |
4,175,592 |
|
|
|
|
|
|
|
Liabilities and
Stockholders' Equity: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Savings, NOW & money
market deposits |
|
$ |
1,726,886 |
|
|
|
3,263 |
|
.25 |
|
|
$ |
1,808,349 |
|
|
|
3,451 |
|
.26 |
|
Time deposits |
|
|
345,623 |
|
|
|
3,474 |
|
1.34 |
|
|
|
324,419 |
|
|
|
4,818 |
|
1.99 |
|
Total interest-bearing
deposits |
|
|
2,072,509 |
|
|
|
6,737 |
|
.43 |
|
|
|
2,132,768 |
|
|
|
8,269 |
|
.52 |
|
Short-term borrowings |
|
|
62,837 |
|
|
|
775 |
|
1.65 |
|
|
|
55,238 |
|
|
|
1,062 |
|
2.57 |
|
Long-term debt |
|
|
221,889 |
|
|
|
3,280 |
|
1.98 |
|
|
|
228,383 |
|
|
|
3,468 |
|
2.03 |
|
Total interest-bearing
liabilities |
|
|
2,357,235 |
|
|
|
10,792 |
|
.61 |
|
|
|
2,416,389 |
|
|
|
12,799 |
|
.71 |
|
Checking deposits |
|
|
1,451,964 |
|
|
|
|
|
|
|
|
|
1,315,768 |
|
|
|
|
|
|
|
Other liabilities |
|
|
31,826 |
|
|
|
|
|
|
|
|
|
27,856 |
|
|
|
|
|
|
|
|
|
|
3,841,025 |
|
|
|
|
|
|
|
|
|
3,760,013 |
|
|
|
|
|
|
|
Stockholders' equity |
|
|
393,936 |
|
|
|
|
|
|
|
|
|
415,579 |
|
|
|
|
|
|
|
|
|
$ |
4,234,961 |
|
|
|
|
|
|
|
|
$ |
4,175,592 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net interest income (2) |
|
|
|
|
$ |
89,560 |
|
|
|
|
|
|
|
$ |
81,177 |
|
|
|
Net interest spread (2) |
|
|
|
|
|
|
|
2.69 |
% |
|
|
|
|
|
|
|
2.42 |
% |
Net interest margin (2) |
|
|
|
|
|
|
|
2.95 |
% |
|
|
|
|
|
|
|
2.70 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) The average balances of loans include
nonaccrual loans. The average balances of investment securities
include unrealized gains and losses on AFS securities in the 2021
period and exclude such amounts in the 2022 period. Unrealized
gains and losses were immaterial in 2021.
(2) 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, |
|
|
|
2022 |
|
2021 |
|
(dollars in thousands) |
|
AverageBalance |
|
Interest/Dividends |
|
AverageRate |
|
AverageBalance |
|
Interest/Dividends |
|
AverageRate |
|
Assets: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest-earning bank balances |
|
$ |
38,714 |
|
|
$ |
217 |
|
2.22 |
% |
|
$ |
282,148 |
|
|
$ |
108 |
|
.15 |
% |
|
Investment securities: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Taxable (1) |
|
|
450,617 |
|
|
|
2,534 |
|
2.25 |
|
|
|
476,963 |
|
|
|
2,083 |
|
1.75 |
|
|
Nontaxable (1) (2) |
|
|
322,492 |
|
|
|
2,596 |
|
3.22 |
|
|
|
338,130 |
|
|
|
2,624 |
|
3.10 |
|
|
Loans (1) (2) |
|
|
3,341,335 |
|
|
|
30,034 |
|
3.60 |
|
|
|
2,916,572 |
|
|
|
25,976 |
|
3.56 |
|
|
Total interest-earning
assets |
|
|
4,153,158 |
|
|
|
35,381 |
|
3.41 |
|
|
|
4,013,813 |
|
|
|
30,791 |
|
3.07 |
|
|
Allowance for credit
losses |
|
|
(30,869 |
) |
|
|
|
|
|
|
|
|
(31,213 |
) |
|
|
|
|
|
|
|
Net
interest-earning assets |
|
|
4,122,289 |
|
|
|
|
|
|
|
|
|
3,982,600 |
|
|
|
|
|
|
|
|
Cash and due from banks |
|
|
35,881 |
|
|
|
|
|
|
|
|
|
33,632 |
|
|
|
|
|
|
|
|
Premises and equipment,
net |
|
|
38,017 |
|
|
|
|
|
|
|
|
|
38,287 |
|
|
|
|
|
|
|
|
Other assets |
|
|
131,823 |
|
|
|
|
|
|
|
|
|
130,235 |
|
|
|
|
|
|
|
|
|
|
$ |
4,328,010 |
|
|
|
|
|
|
|
|
$ |
4,184,754 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Liabilities
and Stockholders' Equity: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Savings, NOW & money
market deposits |
|
$ |
1,752,468 |
|
|
|
1,699 |
|
.38 |
|
|
$ |
1,851,281 |
|
|
|
1,191 |
|
.26 |
|
|
Time deposits |
|
|
397,595 |
|
|
|
1,374 |
|
1.37 |
|
|
|
230,967 |
|
|
|
921 |
|
1.58 |
|
|
Total
interest-bearing deposits |
|
|
2,150,063 |
|
|
|
3,073 |
|
.57 |
|
|
|
2,082,248 |
|
|
|
2,112 |
|
.40 |
|
|
Short-term borrowings |
|
|
13,152 |
|
|
|
91 |
|
2.75 |
|
|
|
52,138 |
|
|
|
362 |
|
2.75 |
|
|
Long-term debt |
|
|
272,294 |
|
|
|
1,412 |
|
2.06 |
|
|
|
226,002 |
|
|
|
1,157 |
|
2.03 |
|
|
Total
interest-bearing liabilities |
|
|
2,435,509 |
|
|
|
4,576 |
|
.75 |
|
|
|
2,360,388 |
|
|
|
3,631 |
|
.61 |
|
|
Checking deposits |
|
|
1,470,783 |
|
|
|
|
|
|
|
|
|
1,374,803 |
|
|
|
|
|
|
|
|
Other liabilities |
|
|
36,718 |
|
|
|
|
|
|
|
|
|
26,618 |
|
|
|
|
|
|
|
|
|
|
|
3,943,010 |
|
|
|
|
|
|
|
|
|
3,761,809 |
|
|
|
|
|
|
|
|
Stockholders' equity |
|
|
385,000 |
|
|
|
|
|
|
|
|
|
422,945 |
|
|
|
|
|
|
|
|
|
|
$ |
4,328,010 |
|
|
|
|
|
|
|
|
$ |
4,184,754 |
|
|
|
|
|
|
|
|
Net interest income (2) |
|
|
|
|
$ |
30,805 |
|
|
|
|
|
|
|
$ |
27,160 |
|
|
|
|
Net interest spread (2) |
|
|
|
|
|
|
|
2.66 |
% |
|
|
|
|
|
|
|
2.46 |
% |
|
Net interest margin (2) |
|
|
|
|
|
|
|
2.97 |
% |
|
|
|
|
|
|
|
2.71 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) The average balances of loans include
nonaccrual loans. The average balances of investment securities
include unrealized gains and losses on AFS securities in the 2021
period and exclude such amounts in the 2022 period. Unrealized
gains and losses were immaterial in 2021.
(2) 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 May 2024 to Jun 2024
First of Long Island (NASDAQ:FLIC)
Historical Stock Chart
From Jun 2023 to Jun 2024