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2024-08-28 00:05 News Release October 28 , 2021 2:00 PM The First of Long Island Corporation Reports Earnings for the Third Quarter Of 2021 GLEN HEAD , N.Y. , Oct. 28 , 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 nine months ended September 30 , 2021 . 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 $ 11.4 million and $ .48 , respectively , versus $ 10.8 million and $ .45 ROA and ROE were 1.08 % and 10.71 % , respectively , compared to 1.02 % and 10.77 % Net interest margin was 2.71 % versus 2.66 % Recorded charges of $ 1.2 million relating to announced branch optimization strategy Cash Dividends Per Share increased 5.3 % to $ .20 from $ .19 Effective Tax Rate was 19.4 % versus 18.0 % NINE MONTH HIGHLIGHTS Net Income and EPS were $ 34.1 million and $ 1.43 , respectively , versus $ 30.7 million and $ 1.28 ROA and ROE were 1.09 % and 10.96 % , respectively , compared to .98 % and 10.49 % Net interest margin was 2.70 % versus 2.64 % Repurchased 301,265 shares at a cost of $ 6.3 million Effective Tax Rate was 20.2 % versus 16.8 % Analysis of Earnings - Nine Months Ended September 30 , 2021 Net income for the first nine months of 2021 was $ 34.1 million , an increase of $ 3.4 million , or 11.1 % , versus the same period last year . The increase is due to growth in net interest income of $ 2.4 million , or 3.1 % , and noninterest income , net of gains on sales of securities , of $ 219,000 , and a decline in the provision for credit losses of $ 5.5 million . These items were partially offset by increases in noninterest expense , net of debt extinguishment costs , of $ 2.9 million , and income tax expense of $ 2.4 million . The increase in net interest income reflects a favorable shift in the mix of funding as an increase in average checking deposits of $ 247.9 million , or 23.2 % , and a decline in average interest - bearing liabilities of $ 258.9 million , or 9.7 % , 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 $ 3.2 million . PPP income for the 2021 period was $ 5.1 million driven by an average balance of $ 129.3 million and a weighted average yield earned of 5.3 % . In addition , the repayment of a maturing interest rate swap in May 2021 lowered the cost of funds in the 2021 period by $ 1.5 million . Partially offsetting the favorable impact of the above items on net interest income was a decline in the average balance of loans of $ 169.2 million , or 5.4 % . In addition , the current market yields on loans and investments are below the runoff yields on both portfolios which exerts downward pressure on net interest income . The average yield on interest - earning assets declined 31 basis points ( " bps " ) from 3.44 % for the first nine months of 2020 to 3.13 % for the current nine - month period . The negative impact of declining asset yields on net interest income was substantially offset through reductions in non - maturity and time deposit rates . The average cost of interest - bearing liabilities declined 48 bps from 1.19 % for the first nine months of 2020 to .71 % for the current nine - month period . Net interest margin for the first nine months of 2021 was 2.70 % versus 2.64 % for the 2020 period . Income from PPP loans improved net interest margin for the first nine months of 2021 by 8 bps . As of September 30 , 2021 , the Bank had $ 67.8 million of outstanding PPP loans with unearned fees of $ 2.3 million . We expect most of the outstanding PPP loan portfolio will be fully satisfied by March 31 , 2022 . The mortgage loan pipeline was $ 165 million at September 30 , 2021 with a weighted average rate of approximately 3.0 % . Sluggish loan demand and competition among bank and non - bank lenders continue to put pressure on the pipeline and originations . The expansion of our lending teams helped grow commercial mortgages by $ 174.5 million since September 30 , 2020 and now comprise 54.4 % of total mortgages compared to 48.1 % a year ago . While commercial and industrial lines of credit have increased , line utilization remains low contributing to a decrease in commercial and industrial loans outstanding . We believe the economic impact of the pandemic and the stimulus packages passed by Congress contributed to decreased loan demand , lower levels of outstanding balances on existing credit lines and the high level of cash on our balance sheet . The increase in noninterest income , net of gains on sales of securities , of $ 219,000 is primarily attributable to increases in the non - service cost components of the Bank's defined benefit pension plan of $ 413,000 and fees from debit and credit cards of $ 417,000 . These items were partially offset by a decrease in investment services income of $ 586,000 as the shift to an outside service provider resulted in less assets under management . Assets under management will likely decline further through year - end 2021 as the Bank transitions from its legacy trust and investment businesses to a single platform with LPL Financial . The provision for credit losses decreased $ 5.5 million when comparing the nine - month periods from a provision of $ 2.5 million in the 2020 period to a credit of $ 3.1 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 residential mortgage loans , partially offset by net chargeoffs of $ 463,000 . The net chargeoffs were mainly the result of sales of four commercial mortgages . The increase in noninterest expense , net of debt extinguishment costs , of $ 2.9 million includes charges of $ 1.2 million related to the previously announced closing and consolidation of eight branches as part of our branch optimization strategy . The $ 1.2 million includes severance - related salary and benefits expense of $ 123,000 , occupancy and equipment expense related to rent , depreciation and asset disposals of $ 1.1 million , and telecom contract breakage costs of $ 40,000 . The Bank expects $ 2.2 million of additional closing - related expense in the fourth quarter of 2021. The https://feeds.issuerdirect.com/news-release.html?newsid=5154557085490073 1/6