The First of Long Island Corporation Reports $3.8 Million Net Income in Q1 2025, Declines Year-Over-Year

The First of Long Island Corporation reported a net income of $3.8 million for the first quarter of 2025, a decrease from $4.4 million in the same period of 2024. This resulted in diluted earnings per share of $0.17, down from $0.20 year-over-year. The decline in profitability was attributed to a combination of factors, including a $661,000 increase in net interest income, which was offset by a $168,000 provision for credit losses, a $922,000 rise in noninterest expenses, and a $193,000 increase in income tax expenses. The return on average assets was 0.37%, while the return on average equity stood at 3.98%.

In terms of operational performance, net interest income increased to $19.1 million, primarily due to a $2 million reduction in interest expenses, despite a $1.4 million decrease in interest income. The decrease in interest expenses was driven by a 16 basis points decline in the cost of interest-bearing liabilities and a reduction in average interest-bearing liabilities by $92.9 million. The allowance for credit losses (ACL) remained stable at $28.3 million, representing 0.89% of total loans, with past due loans totaling $7.5 million and nonaccrual loans at $3.5 million as of March 31, 2025.

The corporation is currently navigating a significant strategic development with its proposed merger with ConnectOne Bancorp, Inc., which was approved by shareholders on February 14, 2025. The merger is expected to close in the second quarter of 2025, pending regulatory approvals. This merger is anticipated to enhance the corporation's market position and operational capabilities. Additionally, the corporation incurred $230,000 in merger-related expenses during the quarter, contributing to the increase in noninterest expenses.

The First of Long Island Corporation's total deposits remained relatively flat at approximately $3.3 billion, with slight increases in savings and time deposits. The bank's liquidity position is robust, with $878.1 million available from various sources, including collateralized borrowing lines and unencumbered securities. The bank's capital position is strong, with a leverage ratio of 10.29% and a book value per share of $16.91 as of March 31, 2025. The corporation declared a quarterly cash dividend of $0.21 per share, consistent with the previous year.

Looking ahead, the corporation's management remains cautious about economic conditions, particularly regarding inflation and interest rate fluctuations, which could impact future credit losses and overall financial performance. The bank's management is focused on maintaining strong asset quality and liquidity while preparing for the upcoming merger, which is expected to provide additional growth opportunities.