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2024-08-28 00:09 April 29 , 2021 2:30 PM News Release The First of Long Island Corporation Reports Earnings for the First Quarter of 2021 GLEN HEAD , N.Y. , April 29 , 2021 ( GLOBE NEWSWIRE ) - -- 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 months ended March 31 , 2021. 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 2021 HIGHLIGHTS Net Income and EPS were $ 11.3 million and $ .47 , respectively , versus $ 9.1 million and $ .38 ROA and ROE were 1.11 % and 11.17 % , respectively , compared to .90 % and 9.41 % Book value per share increased 8.6 % to $ 17.16 from $ 15.80 Net interest margin was 2.69 % versus 2.62 % Cash Dividends Per Share increased 5.6 % to $ .19 from $ .18 Repurchased 107,887 shares at a cost of $ 2.0 million Effective Tax Rate was 19.4 % versus 15.2 % Analysis of First Quarter Earnings Net income for the first quarter of 2021 was $ 11.3 million , an increase of $ 2.1 million , or 23.2 % , versus the same quarter last year . The increase is due to growth in net interest income of $ 916,000 , or 3.7 % , and noninterest income of $ 514,000 , or 17.0 % , and a decline in the provision for credit losses of $ 3.3 million . These items were partially offset by increases in noninterest expense of $ 1.6 million , or 10.7 % , and income tax expense of $ 1.1 million . The increase in net interest income reflects a favorable shift in the mix of funding as an increase in average checking deposits of $ 325.7 million , or 35.5 % , and a decline in average interest - bearing liabilities of $ 322.7 million , or 11.8 % , resulted in average checking deposits comprising a larger portion of total funding . The increase is also attributable to income from SBA Paycheck Protection Program ( " PPP " ) loans of $ 1.9 million during the current quarter driven by an average balance of $ 160.0 million and a weighted average yield earned of 4.9 % . Average checking deposits include a portion of the proceeds of PPP loans . Partially offsetting the favorable impact of these items was a decline in the average balance of loans of $ 146.5 million , or 4.6 % , due to the economic impact of the COVID - 19 pandemic ( " pandemic " ) , which contributed to a notable increase in cash on our balance sheet . Also exerting downward pressure on net interest income were current market yields on securities and loans being lower than the yields on runoff in both portfolios . The average yield on interest - earning assets declined 45 basis points ( " bps " ) from 3.64 % for the first quarter of 2020 to 3.19 % for the current quarter . Although asset yields declined , management substantially offset the negative impact on net interest income through reductions in non - maturity and time deposit rates . The average cost of interest - bearing liabilities declined 64 bps from 1.46 % for the first quarter of 2020 to .82 % for the current quarter . Net interest margin for the first quarter of 2021 was 2.69 % as compared to 2.64 % and 2.62 % for the 2020 fourth and first quarters , respectively . Income on PPP loans improved net interest margin for the current quarter and fourth quarter of 2020 by 9 bps and 8 bps , respectively . We expect net interest income and margin to benefit from the use of excess cash in May 2021 to repay a maturing $ 150 million interest rate swap currently costing 2.85 % , and from certificates of deposit totaling $ 114 million maturing through March 31 , 2022 with an average yield of 1.11 % which exceeds current market deposit rates . During the first quarter of 2021 , we originated $ 83 million of PPP loans with deferred fees of $ 3.3 million . On a cumulative basis through March 31 , 2021 , $ 62 million of the Bank's PPP loans were forgiven by the SBA . If economic activity continues to improve and businesses return to normal operations in our marketplace , we expect mortgage originations to grow . Our emphasis remains commercial lending over residential mortgage lending . The mortgage loan pipeline grew to $ 107 million at March 31 , 2021 , the highest level in three years . The decrease in noninterest income , net of gains on sales of securities , of $ 92,000 is primarily attributable to decreases in service charges on deposit accounts of $ 304,000 and a decline in investment services income of $ 74,000 offset by an increase in the non - service cost components of the Bank's defined benefit pension plan of $ 138,000 . The decrease in service charges on deposit accounts is mainly attributable to the pandemic which has negatively affected most categories of noninterest income while the decrease in investment services income is due to a decline in assets under management . Assets under management will likely decline further as the Bank transitions from its legacy trust and investment businesses to a single platform with LPL Financial , the nation's largest independent broker - dealer . The provision for credit losses decreased $ 3.3 million when comparing the first quarter periods from a provision of $ 2.4 million in the 2020 quarter to a credit of $ 986,000 in the 2021 quarter . The credit provision for the current quarter was mainly due to improvements in economic conditions , asset quality and other portfolio metrics and a decline in outstanding mortgage loans , partially offset by net chargeoffs of $ 447,000 . The increase in noninterest expense of $ 1.6 million was primarily due to an increase in salaries and employee benefits related to staffing our new Riverhead Branch , building our lending and credit teams , special bonuses and overtime for PPP loan processing and normal salary adjustments . Also contributing to the increase was FDIC insurance expense of $ 267,000 for the current quarter , an increase in the provision for unfunded loan commitments of $ 305,000 and higher facilities maintenance costs including snow removal . The increase in FDIC insurance expense is due to an assessment credit in the 2020 quarter which resulted in no FDIC insurance cost . The increase in the provision for unfunded commitments reflects an increase in commitments for the current quarter versus a decrease for the 2020 quarter . Income tax expense increased $ 1.1 million and the effective tax rate increased from 15.2 % to 19.4 % when comparing the first quarter of 2020 to the current quarter . The increase in the effective tax rate is mainly due to a decrease in the percentage of pre - tax income derived from tax - exempt municipal securities and bank - owned life insurance in 2021. The increase in income tax expense reflects the higher effective tax rate and an increase in pre - tax earnings in the current quarter as compared to the 2020 quarter . Analysis of Earnings - First Quarter 2021 Versus Fourth Quarter 2020 https://feeds.issuerdirect.com/news-release.html?newsid=5482140666805934 1/5 15