Page 1

2024-08-28 00:07 July 29 , 2021 2:00 PM News Release The First of Long Island Corporation Reports Earnings for the Second Quarter of 2021 GLEN HEAD , N.Y. , July 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 and six months ended June 30 , 2021. In the highlights that follow , all comparisons are of the current three or six - month period to the same period last year unless otherwise indicated . SECOND QUARTER HIGHLIGHTS Net Income and EPS were $ 11.4 million and $ .48 , respectively , versus $ 10.8 million and $ .45 ROA and ROE were 1.08 % and 11.02 % , respectively , compared to 1.02 % and 11.30 % Book value per share increased 7.6 % to $ 17.58 at 6/30/21 from $ 16.34 at 6/30/20 Net interest margin was 2.71 % versus 2.64 % Cash Dividends Per Share increased 5.6 % to $ .19 from $ .18 Effective Tax Rate was 21.7 % versus 16.8 % SIX MONTH HIGHLIGHTS Net Income and EPS were $ 22.7 million and $ .95 , respectively , versus $ 19.9 million and $ .83 ROA and ROE were 1.10 % and 11.09 % , respectively , compared to .96 % and 10.34 % Net interest margin was 2.70 % versus 2.63 % Repurchased 200,420 shares at a cost of $ 4.1 million Effective Tax Rate was 20.6 % versus 16.1 % Analysis of Earnings - Six Months Ended June 30 , 2021 Net income for the first six months of 2021 was $ 22.7 million , an increase of $ 2.7 million , or 13.8 % , versus the same period last year . The increase is due to growth in net interest income of $ 1.7 million , or 3.4 % , and noninterest income of $ 770,000 , or 13.8 % , and a decline in the provision for credit losses of $ 4.1 million . These items were partially offset by increases in noninterest expense of $ 1.8 million , or 5.8 % , and income tax expense of $ 2.1 million . The increase in net interest income reflects a favorable shift in the mix of funding as an increase in average checking deposits of $ 271.9 million , or 26.8 % , and a decline in average interest - bearing liabilities of $ 279.1 million , or 10.2 % , resulted in average checking deposits comprising a larger portion of total funding . The increase is also attributable to higher income from SBA Paycheck Protection Program ( " PPP " ) loans of $ 3.0 million . PPP income for the 2021 period was $ 3.9 million driven by an average balance of $ 155.2 million and a weighted average yield earned of 5.0 % . Net interest income for the second quarter and six months of 2021 also benefited by approximately $ 450,000 from the maturity of a $ 150 million interest rate swap in May 2021 with a cost of funds of 2.85 % . The Bank used excess cash to repay the interest rate swap . Partially offsetting the favorable impact on net interest income was a decline in the average balance of loans of $ 161.9 million , or 5.1 % . Also exerting downward pressure on net interest income were current market yields on securities and loans being lower than the runoff yields on both portfolios . The average yield on interest - earning assets declined 36 basis points ( " bps " ) from 3.52 % for the first six months of 2020 to 3.16 % for the current six - month period . Management substantially offset the negative impact of declining asset yields on net interest income through reductions in non - maturity and time deposit rates . The average cost of interest - bearing liabilities declined 54 bps from 1.30 % for the first six months of 2020 to .76 % for the current six - month period . Net interest margin for the first six months of 2021 was 2.70 % versus 2.63 % for the 2020 period . Income from PPP loans improved net interest margin for the first six - months of 2021 by 9 bps . As of June 30 , 2021 , the Bank had $ 97.6 million of outstanding PPP loans with unearned fees of $ 3.3 million . We expect substantially all outstanding PPP loans to payoff by the end of 2021. In the current interest rate environment , the Bank will be unable to replace the yield being earned on PPP loans putting downward pressure on the net interest margin in 2022 . The mortgage loan pipeline was $ 74 million at June 30 , 2021. Sluggish loan demand and competition for loans among banks and other lenders continues to put pressure on the pipeline and originations . Comparing June 30 , 2020 to June 30 , 2021 , the expansion of our lending teams helped grow commercial mortgages by $ 127.7 million . Commercial and industrial available lines of credit have increased . However , line utilization is near historic low levels resulting in a decrease in commercial and industrial loans outstanding . We believe the economic impact of the pandemic and the stimulus packages passed by Congress contributed not only to the unusually high level of cash on our balance sheet , but also to decreased loan originations and lower levels of outstanding balances on existing credit lines . The increase in noninterest income , net of gains on sales of securities , of $ 164,000 is primarily attributable to increases in the non - service cost components of the Bank's defined benefit pension plan of $ 275,000 and fees from debit and credit cards of $ 242,000 . These items were partially offset by decreases in investment services income of $ 276,000 and service charges on deposit accounts of $ 188,000 . Revenue from assets under management fell as the shift to an outside service provider resulted in the loss of some relationships . 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 decrease in service charges on deposit accounts is mainly attributable to the pandemic which has negatively affected most categories of fee income . The provision for credit losses decreased $ 4.1 million when comparing the six - month periods from a provision of $ 2.5 million in the 2020 period to a credit of $ 1.6 million in the 2021 period . The credit provision for the current period 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 $ 460,000 . The net chargeoffs were mainly the result of sales of three commercial mortgages in the first quarter . The increase in noninterest expense of $ 1.8 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 and normal salary adjustments . Also contributing to the increase was higher FDIC insurance expense due to an assessment credit in 2020 , increased marketing expense and the cost of facilities maintenance . https://feeds.issuerdirect.com/news-release.html?newsid=4910462181605591 1/6