Financial Performance - Net income for 2024 was $17.1 million, a decrease from $26.2 million in 2023, with diluted EPS dropping to $0.75 from $1.16[150][151] - Net income for 2024 was $17,076 thousand, down 34.5% from $26,239 thousand in 2023[256] - Earnings per share (EPS) decreased from $1.16 in 2023 to $0.76 in 2024, a drop of 34.5%[256] - The Corporation's return on equity (ROE) was 4.49% for 2024, down from 7.14% in 2023[225] - Other comprehensive income for 2024 was $552 thousand, compared to $7,039 thousand in 2023, indicating a significant decrease[258] Income and Expenses - Net interest income declined by $13.6 million year-over-year, primarily due to a $25.5 million increase in interest expense, while interest income increased by $11.8 million[151][152] - Noninterest income, excluding losses on securities sales, increased by $2.2 million, or 22.8%, driven by increases in service charges and other recurring income[154] - Noninterest expense rose by $4.1 million, or 6.4%, largely due to branch consolidation and merger expenses, with salaries and employee benefits increasing by 6.3%[155] - The effective tax rate improved significantly from 11.0% in 2023 to (1.9%) in 2024, reflecting a higher proportion of income from the Bank's REIT[156] Assets and Liabilities - Total assets at year-end 2024 were $4,119.3 million, a slight decrease from $4,235.9 million in 2023[149] - Total assets decreased from $4,235,900 thousand in 2023 to $4,119,336 thousand in 2024, a decline of approximately 2.7%[254] - Total deposits remained flat at $3.3 billion, while stockholders' equity decreased by $1.2 million, or 0.3%, due to cash dividends of $18.9 million and common stock repurchases of $2.0 million[195] - Total deposits decreased from $3,270,986 thousand in 2023 to $3,264,858 thousand in 2024, a decline of about 0.2%[254] Loans and Credit Quality - Loans outstanding were $3,221.6 million at the end of 2024, down from $3,248.1 million in 2023[149] - Nonaccrual loans increased to $3.2 million, or 0.10% of total loans, compared to $1.1 million, or 0.03%, in 2023[158] - The provision for credit losses was $359,000 in 2024, compared to a reversal of $326,000 in 2023, with the allowance for credit losses to total loans ratio remaining stable at 0.88%[153][157] - The allowance for credit losses was $28.3 million as of December 31, 2024, slightly down from $28.99 million in 2023[203] - The provision for credit losses recorded in 2024 was influenced by deteriorating economic conditions and adjustments for multifamily properties[327] Mergers and Acquisitions - The Corporation entered into a Merger Agreement with ConnectOne, with the transaction expected to close in the second quarter of 2025[170] - The company is facing risks related to the proposed merger with ConnectOne, including potential delays and regulatory approvals[252] Investment Portfolio - The fair value of available-for-sale (AFS) securities decreased from $695.9 million in 2023 to $624.8 million in 2024, reflecting a decline in various categories of securities[198] - The Corporation's investment securities portfolio had a carrying value of $624,779 thousand as of December 31, 2024, with unrealized losses totaling $74,114 thousand[308] - The amortized cost of the Bank's investment securities portfolio was $698.0 million, with a fair value of $624.8 million as of December 31, 2024[322] Stockholder Activities - In Q1 2024, the Corporation repurchased 167,526 shares of common stock for a total cost of $2.0 million, with no repurchases in subsequent quarters due to the Merger Agreement[228] - Cash dividends declared in 2024 totaled $18,912 thousand, slightly increased from $18,949 thousand in 2023 and $18,656 thousand in 2022[262] Economic Conditions and Risks - Future chargeoffs and provisions for credit losses may be affected by economic conditions in Long Island and NYC, where 96% of total loans are secured by real estate[218] - The projected Economic Value of Equity (EVE) at December 31, 2024, was $479.3 million under the base case scenario, with a potential decrease of 27.5% under a +300 basis point rate shock[249]
The First of Long Island (FLIC) - 2024 Q4 - Annual Report