On January 30, 2025, First of Long Island Corp (FLIC, Financial) released its 8-K filing detailing its financial performance for the year ended December 31, 2024. The company, a holding entity providing a range of financial services including savings accounts, mortgage loans, and online banking, reported earnings that fell short of analyst expectations.
Performance Overview
First of Long Island Corp reported a net income of $17.1 million for 2024, translating to a diluted earnings per share (EPS) of $0.75. This is a decline from the previous year's net income of $26.2 million and EPS of $1.16. The reported EPS is below the annual analyst estimate of $0.86. The company's revenue primarily consists of interest on loans and investment securities, along with fees from deposit accounts.
Financial Achievements and Challenges
Despite the challenges, First of Long Island Corp managed to increase its noninterest income by 22.8% year-over-year, excluding a $3.5 million loss on securities in 2023. This increase was driven by higher income from bank-owned life insurance and service charges on deposit accounts. However, the company faced a significant decline in net interest income, which decreased by $13.6 million or 15.7%, primarily due to a rise in interest expenses.
President and CEO Chris Becker stated, "Our team is focused on best positioning our company for the future and its pending merger with ConnectOne Bancorp, Inc. In that regard, our net interest margin bottomed out during the first quarter of 2024 and began its recovery during the remainder of the year."
Income Statement and Key Metrics
The company's net interest margin for 2024 was 1.83%, a decrease from 2.16% in 2023. The return on average assets (ROA) was 0.40%, and the return on average equity (ROE) was 4.49%. These metrics are crucial as they reflect the company's efficiency in generating profits from its assets and equity, respectively.
| Metric | 2024 | 2023 |
|---|---|---|
| Net Income | $17.1 million | $26.2 million |
| Diluted EPS | $0.75 | $1.16 |
| Net Interest Margin | 1.83% | 2.16% |
| ROA | 0.40% | 0.62% |
| ROE | 4.49% | 7.14% |
Balance Sheet and Liquidity
As of December 31, 2024, First of Long Island Corp reported total assets of $4.12 billion, a slight decrease from $4.24 billion in 2023. The company's liquidity position remains robust with $868.5 million available, including collateralized borrowing lines and unencumbered cash and securities. The leverage ratio stood at 10.12%, indicating a strong capital position.
Analysis and Outlook
The decline in net income and EPS highlights the challenges faced by First of Long Island Corp in managing interest expenses and maintaining profitability. The company's focus on controlling noninterest expenses and improving asset quality is crucial for future growth. The pending merger with ConnectOne Bancorp, Inc. is expected to bring new opportunities and enhance shareholder value.
For more detailed financial information, readers are encouraged to review the company's Annual Report on Form 10-K, which will be available on the SEC's website and the Bank’s website on or about March 12, 2025.
Explore the complete 8-K earnings release (here) from First of Long Island Corp for further details.
