On July 25, 2024, First of Long Island Corp (FLIC, Financial) released its 8-K filing reporting earnings for the second quarter of 2024. First of Long Island Corp is a holding company that provides financial services, including saving accounts, current accounts, capital gain accounts, and various lending services. The company also offers account reconciliation services, ATM banking, bill payment, cash management services, mobile banking, online banking, and payroll services.
Performance Overview
For the second quarter of 2024, First of Long Island Corp reported a net income of $4.8 million, a decrease of $2.1 million compared to the same period last year. This decline is primarily due to a $3.4 million drop in net interest income and a $570,000 increase in the provision for credit losses. Despite these challenges, the company saw reductions in salaries and employee benefits and occupancy and equipment expenses, which partially offset the decline in net interest income.
Key Financial Metrics
| Metric | Q2 2024 | Q2 2023 |
|---|---|---|
| Net Income | $4.8 million | $6.9 million |
| EPS | $0.21 | $0.31 |
| Net Interest Margin | 1.80% | 2.17% |
| Return on Average Assets (ROA) | 0.45% | 0.66% |
| Return on Average Equity (ROE) | 5.15% | 7.44% |
Income Statement Highlights
Net interest income for the second quarter of 2024 was $18.4 million, down from $21.8 million in the same period last year. The decline in net interest income is attributed to an increase in interest expense, which rose to $24.1 million from $16.3 million in Q2 2023. Interest income on loans and taxable investment securities increased, but this was outweighed by higher interest expenses on savings, NOW, and money market deposits.
Balance Sheet and Liquidity
As of June 30, 2024, total assets stood at $4.2 billion, slightly down from $4.23 billion at the end of 2023. Total average deposits declined by $81 million, or 2.4%, reflecting broader industry trends. The company maintained a strong liquidity position with approximately $1.4 billion of available liquidity, including $1.1 billion in collateralized borrowing lines and $282.5 million in unencumbered cash and securities.
Capital Position
First of Long Island Corp's capital position remains robust with a leverage ratio of approximately 9.91% as of June 30, 2024. The book value per share increased to $16.71 from $16.22 a year ago. The company declared a quarterly cash dividend of $0.21 per share during the quarter.
Commentary from Management
"We are encouraged by a quarter of increase in many financial metrics, including both deposit and loan growth during the quarter. At the end of the first quarter of this year, I commented that we believe our margin should be at the bottom. A one basis point increase in the margin during the second quarter is reflective of that guidance. Our noninterest income and noninterest expense met our guidance for the second straight quarter. Finally, our credit quality results remained strong." - Chris Becker, President and CEO
Conclusion
First of Long Island Corp's Q2 2024 earnings reflect the challenges faced by the banking industry, including rising interest expenses and a competitive deposit environment. However, the company's strong capital position and liquidity provide a solid foundation for future growth. Investors will be keen to see how the company navigates these challenges in the coming quarters.
Explore the complete 8-K earnings release (here) from First of Long Island Corp for further details.
