Core Viewpoint - The First of Long Island Corporation reported a decline in net income and earnings per share for the year ended December 31, 2024, primarily due to a decrease in net interest income and an increase in expenses, while also highlighting a focus on future growth through a pending merger with ConnectOne Bancorp, Inc. [2][4] Financial Performance - Net income for 2024 was $17.1 million, down from $26.2 million in 2023, with diluted earnings per share decreasing from $1.16 to $0.75 [4] - The decline in net income was driven by a $13.6 million (15.7%) decrease in net interest income and a provision for credit losses of $359,000, compared to a reversal of $326,000 in 2023 [4][6] - Noninterest income increased by nearly 23%, largely due to new and recurring fee income categories [2][7] Interest Income and Expense - Net interest income fell to $73.2 million in 2024 from $86.9 million in 2023, attributed to a $25.5 million increase in interest expense, partially offset by an $11.8 million rise in interest income [5][22] - The cost of interest-bearing liabilities rose by 90 basis points, while the yield on interest-earning assets increased by 31 basis points [5] Asset Quality - The allowance for credit losses decreased to $28.3 million at year-end 2024, with a stable reserve coverage ratio of 0.88% of total loans [6][24] - Past due loans were reported at $270,000, and nonaccrual loans totaled $3.2 million, indicating strong overall credit quality [6] Noninterest Expense - Noninterest expense rose by $4.1 million (6.4%) year-over-year, primarily due to merger and branch consolidation expenses [8] - Salaries and employee benefits increased by 6.3%, reflecting various compensation and benefit categories [8] Tax Expense - Income tax expense decreased by $3.5 million, with the effective tax rate dropping from 11.0% in 2023 to (1.9%) in 2024, mainly due to a higher percentage of pre-tax income from the Bank's real estate investment trust [9][10] Liquidity and Capital - As of December 31, 2024, the Bank had $868.5 million in available liquidity, with uninsured deposits comprising 45.8% of total deposits [14] - The Corporation's leverage ratio was approximately 10.12%, with a book value per share of $16.77 [16] Future Outlook - The management expressed optimism regarding the upcoming merger with ConnectOne Bancorp, anticipating new opportunities for stakeholders in 2025 [2]
The First of Long Island Corporation Reports Earnings for the Year Ended December 31, 2024