FLIC Reports Mixed Q1 Results: Net Income Declines Amid Stable Interest Income and Merger Preparations

The First of Long Island Corporation (NASDAQ: FLIC)

The First of Long Island Corporation (FLIC) recently released its financial results for the first quarter ended March 31, 2025. Here’s a breakdown of the key highlights and insights from the company's income statement:

• Net Income: The company reported a net income of $3.8 million, down from $4.4 million in Q1 2024.
• Earnings Per Share: Diluted earnings per share decreased to $0.17 from $0.20.
• Net Interest Income: Increased to $18.8 million, compared to $18.2 million in the same quarter last year.
• Interest Expense: Total interest expense decreased by $2.0 million, primarily attributed to a decline in the cost of interest-bearing liabilities.
• Provision for Credit Losses: The provision increased to $168,000, the first recorded in the past year, reflecting a cautious approach amidst economic uncertainty.
• Noninterest Income: Total noninterest income fell slightly by $57,000 to $2.7 million, influenced by prior year nonrecurring items.
• Noninterest Expense: Increased by $922,000, largely due to merger-related costs ($230,000) and system conversion expenses ($468,000).
• Income Tax Expense: Increased to $487,000, reflecting a higher effective tax rate of 11.5% compared to 6.2% in the previous year.
• Loan Portfolio: Total loans decreased to $3.16 billion, with nonaccrual loans reported at $3.51 million, slightly increased from the previous quarter.
• Allowance for Credit Losses (ACL): Remained stable at $28.3 million, representing 0.89% of total loans.
• Deposits: Total deposits remained flat at $3.3 billion, with a significant portion of uninsured deposits at 49.5%.
• Capital Ratio: The leverage ratio was reported at 10.29%, meeting regulatory requirements.
• Pending Merger: As of March 31, 2025, FLIC is moving forward with plans for a merger with ConnectOne Bancorp, which remains subject to regulatory approval.

Overall Positive Aspects:

• Stable net interest income despite overall declines.
• Decreased interest expenses boosting income margins.
• Strong capital position with healthy leverage ratios.

Negative Aspects:

• Reduction in net income and earnings per share compared to last year.
• Increased noninterest expenses driven largely by the impending merger.
• Emergence of provisions for credit losses raises cautionary flags amidst economic changes.

The data reflects a mixed performance for The First of Long Island Corporation, with both positive improvements in certain expenses and challenges in income levels as they prepare for their merger.