8-K

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

__________________

FORM 8-K

__________________

CURRENT REPORT

PURSUANT TO SECTION 13 OR 15(d) OF THE

SECURITIES EXCHANGE ACT OF 1934

Date of report (Date of earliest event reported): April 25, 2024

__________________

The First of Long Island Corporation

(Exact name of the registrant as specified in its charter)

__________________

New York	001-32964	11-2672906
(State or other jurisdiction of	(Commission File Number)	(IRS Employer
incorporation or organization)		Identification No.)

275 Broadhollow Road
Melville, New York	11747
(Address of principal executive offices)	(Zip Code)

(516) 671-4900

(Registrant’s telephone number)

Not applicable

(Former name or former address, if changed since last report)

__________________

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (See General Instruction A.2. below):

☐	Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
☐	Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
☐	Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
☐	Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Securities registered pursuant to Section 12(b) of the Act:

Title of Each Class	Trading Symbol	Name of Each Exchange on Which Registered
Common stock, $0.10 par value per share	FLIC	Nasdaq

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).

Emerging growth company  ☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.  ☐

Item 2.02 Results of Operations and Financial Condition

On April 25, 2024, The First of Long Island Corporation issued a press release disclosing material non-public information regarding the Corporation's financial condition as of March 31, 2024 and its results of operations for the three month period then ended. The press release is furnished as Exhibit 99.1 to this Form 8-K filing. 

Item 9.01 Financial Statements and Exhibits

Exhibit 99.1 - Press release dated April 25, 2024 regarding the Corporation's financial condition as of March 31, 2024 and its results of operations for the three month period then ended.  

Exhibit 104 - Cover page interactive data file (embedded within the Inline XBRL document) 

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized. 

The First of Long Island Corporation

(Registrant)

By: /s/ JANET T. VERNEUILLE

Janet T. Verneuille

Senior Executive Vice President,

Chief Financial Officer & Treasurer

(principal financial officer)

Dated: April 29, 2024

EX-99.1

Exhibit 99.1

April 25, 2024	For More Information Contact:
For Immediate Release	Janet Verneuille, SEVP and CFO
	(516) 671-4900, Ext. 7462

THE FIRST OF LONG ISLAND CORPORATION

REPORTS EARNINGS FOR THE FIRST QUARTER OF 2024

Melville, New York, April 25, 2024 (GLOBE NEWSWIRE) – The First of Long Island Corporation (Nasdaq: FLIC, the “Company” or the “Corporation”), the parent of The First National Bank of Long Island (the “Bank”), reported net income and earnings per share for the three months ended March 31, 2024.

Analysis of First Quarter Earnings

Net income and earnings per share for the quarter ended March 31, 2024, were $4.4 million and $0.20, respectively, compared to $6.5 million and $0.29, respectively, for the comparable quarter in 2023. The principal drivers of the lower earnings were a decline in net interest income of $5.5 million, or 23.2%, and a $1.1 million credit provision for credit losses taken in the first quarter of 2023, partially offset by a loss on sales of securities of $3.5 million in the first quarter of 2023. The decline in net interest income primarily resulted from the current rate environment’s impact on the Bank’s liability sensitive balance sheet. The quarter produced a return on average assets of 0.42%, return on average equity of 4.72%, net interest margin of 1.79%, and an efficiency ratio of 76.48%.

Net interest income declined when comparing the first quarters of 2024 and 2023 due to an increase in interest expense of $11.0 million that was only partially offset by a $5.5 million increase in interest income. The cost of interest-bearing liabilities increased 151 basis points while the yield on interest-earning assets increased 52 basis points when comparing the two quarters. Also contributing to the decline in net interest income was a shift in the mix of funding as average noninterest-bearing deposits decreased $155.4 million while average interest-bearing liabilities increased $137.3 million.

Noninterest income, excluding the loss on sales of securities, increased $272,000, or 10.9%, when comparing the first quarters of 2024 and 2023. Recurring components of noninterest income including bank-owned life insurance (“BOLI”) and service charges on deposit accounts had increases of 7.7% and 11.8%, respectively. Other noninterest income increased 12.7% and included increases of $106,000 in real estate tax refunds and $52,000 in merchant card services.

Noninterest expense declined $365,000, or 2.2%, for the first quarter of 2024, as compared to the first quarter of 2023. Reductions in legal fees of $233,000, occupancy and equipment expense of $111,000 and director fees of $82,000 primarily drove the decline. These items were partially offset by an increase of $209,000 in salaries and employee benefits due to higher incentive compensation and group health costs in the current quarter.

The Bank did not record a credit loss provision in the first quarter of 2024, compared to a credit provision of $1.1 million in the prior year’s first quarter. Changes in the credit loss reserve were driven largely by net chargeoffs of $657,000. The reserve coverage ratio on March 31, 2024, was 0.88% of total loans as compared to 0.89% of total loans at December 31, 2023. Past due loans and nonaccrual loans were modest at $292,000 and $1.2 million, respectively, on March 31, 2024. Overall credit quality in the loan and investment portfolios remains strong.

Income tax expense decreased $357,000, and the effective tax rate declined from 9.1% in the first quarter of 2023 to 6.2% in the current quarter. The decline in the effective tax rate is mainly due to an increase in the percentage of pre-tax income derived from the Bank’s real estate investment trust and BOLI. The decrease in income tax expense reflects the lower effective tax rate and a decline in pre-tax income.

1

Analysis of Earnings – First Quarter 2024 Versus Fourth Quarter 2023

Net income for the first quarter of 2024 declined $1.6 million compared to the fourth quarter of 2023. The decrease was mainly due to a decrease in net interest income of $1.8 million, primarily due to higher cost of funds on total interest-bearing liabilities, and an increase in salaries and employee benefits of $1.9 million. Salaries and employee benefit expenses were considerably lower in the fourth quarter of 2023 as the Company fell short of established performance metrics for short-term incentive and stock-based compensation payouts. Partially offsetting these items was the fourth quarter provision for credit losses of $901,000, an increase in noninterest income of $377,000 and a reduction in the provision for off-balance sheet commitments of $227,000.

The decline in the net interest margin to 1.79% in the first quarter of 2024 from 2.00% in the fourth quarter of 2023 was largely due to the change in the mix of funding.  Average deposits decreased $100.6 million while overnight and other borrowings increased $107.7 million. The weighted average cost of $100 million of new FHLB borrowings taken during the first quarter was 4.72%, considerably more than the weighted average cost of total deposits of 2.08% during the quarter. The change in average funding mix was mainly related to decreases in average tax escrow accounts and municipal deposits.   

Liquidity

Total average deposits declined by $162.6 million, or 4.7%, comparing the first quarters of 2024 to 2023, reflecting industry trends. On March 31, 2024, short term borrowings were down $70 million from year-end 2023. Long-term borrowings increased $42.5 million in the quarter to $515.0 million on March 31, 2024. The Bank had $1.1 billion in collateralized borrowing lines with the Federal Home Loan Bank of New York and the Federal Reserve Bank, as well as a $20 million unsecured line of credit with a correspondent bank. We also had $375 million in unencumbered cash and securities. In total, we had approximately $1.5 billion of available liquidity on March 31, 2024.

Capital

The Corporation’s capital position remains strong with a leverage ratio of approximately 10.0% on March 31, 2024.  Book value per share was $16.78 on March 31, 2024, versus $16.43 on March 31, 2023. The accumulated other comprehensive loss component of stockholders’ equity is mainly comprised of a net unrealized loss in the available-for-sale securities portfolio due to higher market interest rates. We repurchased 167,526 shares in the first quarter of 2024 at a cost of $2.0 million and the Bank declared its quarterly cash dividend of $0.21 per share. The Board and management continue to evaluate both capital management tools to provide the best opportunity to maximize shareholder value.

Looking Forward

President and Chief Executive Officer Chris Becker commented on the Company’s financial position: “Historically the Bank experiences seasonal deposit outflows at year-end and deposits generally build throughout the year.  While average deposits declined approximately $100 million during the first quarter, on March 31, 2024, total deposits were $55.5 million higher than on December 31, 2023. During the first quarter the Bank repriced $62.5 million of wholesale funding with a weighted average cost of 1.36% to current market rates with a weighted average cost of 4.78%. The first quarter 2024 repricing of wholesale funding represented the final tranches of wholesale funding with a significant increase in interest costs. Our retail certificates of deposit have largely repriced to market although the 2024 tranches in April and May have a weighted average cost of approximately 4% and will likely reprice higher during the second quarter of 2024.” 

Mr. Becker added: “The combination of deposit stabilization since year-end 2023’s seasonal outflows and wholesale funding and retail certificates of deposit largely repriced to market rates should stabilize our margin in the coming quarter.  Improvement in the margin in second half of 2024 is dependent on an improving yield curve.”

2

Forward Looking Information

This earnings release contains various “forward-looking statements” within the meaning of that term as set forth in Rule 175 of the Securities Act of 1933 and Rule 3b-6 of the Securities Exchange Act of 1934. Such statements are generally contained in sentences including the words “may” or “expect” or “could” or “should” or “would” or “believe” or “anticipate”. The Corporation cautions that these forward-looking statements are subject to numerous assumptions, risks and uncertainties that could cause actual results to differ materially from those contemplated by the forward-looking statements. Factors that could cause future results to vary from current management expectations include, but are not limited to, changing economic conditions; legislative and regulatory changes; monetary and fiscal policies of the federal government; changes in interest rates; deposit flows and the cost of funds; demand for loan products; competition; changes in management’s business strategies; changes in accounting principles, policies or guidelines; changes in real estate values; and other factors discussed in the “risk factors” section of the Corporation’s filings with the Securities and Exchange Commission (“SEC”). The forward-looking statements are made as of the date of this press release, and the Corporation assumes no obligation to update the forward-looking statements or to update the reasons why actual results could differ from those projected in the forward-looking statements.

For more detailed financial information please see the Corporation’s quarterly report on Form 10-Q for the quarter ended March 31, 2024. The Form 10-Q will be available through the Bank’s website at www.fnbli.com on or about May 10, 2024, when it is anticipated to be electronically filed with the SEC. Our SEC filings are also available on the SEC’s website at www.sec.gov.

3

CONSOLIDATED BALANCE SHEETS

(Unaudited)

	3/31/2024			12/31/2023
	(dollars in thousands)
Assets:
Cash and cash equivalents	$	106,878		$	60,887
Investment securities available-for-sale, at fair value		677,112			695,877
Loans:
Commercial and industrial		123,333			116,163
Secured by real estate:
Commercial mortgages		1,922,275			1,919,714
Residential mortgages		1,148,719			1,166,887
Home equity lines		41,085			44,070
Consumer and other		1,162			1,230
		3,236,574			3,248,064
Allowance for credit losses		(28,335	)		(28,992	)
		3,208,239			3,219,072
Restricted stock, at cost		31,344			32,659
Bank premises and equipment, net		30,957			31,414
Right-of-use asset - operating leases		21,932			22,588
Bank-owned life insurance		114,460			114,045
Pension plan assets, net		10,634			10,740
Deferred income tax benefit		30,137			28,996
Other assets		24,006			19,622
	$	4,255,699		$	4,235,900
Liabilities:
Deposits:
Checking	$	1,102,284		$	1,133,184
Savings, NOW and money market		1,564,153			1,546,369
Time		660,070			591,433
		3,326,507			3,270,986
Overnight advances		—			70,000
Other borrowings		515,000			472,500
Operating lease liability		24,269			24,940
Accrued expenses and other liabilities		12,800			17,328
		3,878,576			3,855,754
Stockholders' Equity:
Common stock, par value $0.10 per share:
Authorized, 80,000,000 shares;
Issued and outstanding, 22,477,928 and 22,590,942 shares		2,248			2,259
Surplus		78,190			79,728
Retained earnings		355,605			355,887
		436,043			437,874
Accumulated other comprehensive loss, net of tax		(58,920	)		(57,728	)
		377,123			380,146
	$	4,255,699		$	4,235,900

4

CONSOLIDATED STATEMENTS OF INCOME

(Unaudited)

	Three Months Ended
	3/31/2024			3/31/2023
	(dollars in thousands)
Interest and dividend income:
Loans	$	33,543		$	30,405
Investment securities:
Taxable		6,993			3,669
Nontaxable		960			1,945
		41,496			36,019
Interest expense:
Savings, NOW and money market deposits		10,083			5,775
Time deposits		6,977			3,069
Overnight advances		263			108
Other borrowings		6,012			3,433
		23,335			12,385
Net interest income		18,161			23,634
Credit provision for credit losses		—			(1,056	)
Net interest income after credit provision for credit losses		18,161			24,690
Noninterest income:
Bank-owned life insurance		840			780
Service charges on deposit accounts		880			787
Net loss on sales of securities		—			(3,489	)
Other		1,054			935
		2,774			(987	)
Noninterest expense:
Salaries and employee benefits		9,974			9,765
Occupancy and equipment		3,214			3,325
Other		3,018			3,481
		16,206			16,571
Income before income taxes		4,729			7,132
Income tax expense		294			651
Net income	$	4,435		$	6,481
Share and Per Share Data:
Weighted Average Common Shares		22,520,568			22,493,437
Dilutive restricted stock units		73,827			86,807
		22,594,395			22,580,244
Basic EPS	$	0.20		$	0.29
Diluted EPS		0.20			0.29
Cash Dividends Declared per share		0.21			0.21
FINANCIAL RATIOS
(Unaudited)
ROA		0.42	%		0.62	%
ROE		4.72			7.09
Net Interest Margin		1.79			2.34
Dividend Payout Ratio		105.00			72.41
Efficiency Ratio		76.48			62.17

5

PROBLEM AND POTENTIAL PROBLEM LOANS AND ASSETS

(Unaudited)

	3/31/2024			12/31/2023
	(dollars in thousands)
Loans including modifications to borrowers experiencing financial difficulty:
Modified and performing according to their modified terms	$	429		$	431
Past due 30 through 89 days		292			3,086
Past due 90 days or more and still accruing		—			—
Nonaccrual		1,172			1,053
		1,893			4,570
Other real estate owned		—			—
	$	1,893		$	4,570
Allowance for credit losses	$	28,335		$	28,992
Allowance for credit losses as a percentage of total loans		0.88	%		0.89	%
Allowance for credit losses as a multiple of nonaccrual loans		24.2	x		27.5	x

6

AVERAGE BALANCE SHEET, INTEREST RATES AND INTEREST DIFFERENTIAL

(Unaudited)

	Three Months Ended March 31,
	2024			2023
	Average	Interest/	Average	Average	Interest/	Average
(dollars in thousands)	Balance	Dividends	Rate	Balance	Dividends	Rate
Assets:
Interest-earning bank balances	$ 55,117	$ 751	5.48%	$ 49,156	$ 547	4.51%
Investment securities:
Taxable (1)	638,857	6,242	3.91	467,444	3,122	2.67
Nontaxable (1) (2)	153,417	1,215	3.17	303,273	2,462	3.25
Loans (1) (2)	3,243,445	33,543	4.14	3,287,664	30,407	3.70
Total interest-earning assets	4,090,836	41,751	4.08	4,107,537	36,538	3.56
Allowance for credit losses	(28,947)			(31,424)
Net interest-earning assets	4,061,889			4,076,113
Cash and due from banks	31,703			31,015
Premises and equipment, net	31,257			31,782
Other assets	120,884			115,173
	$ 4,245,733			$ 4,254,083
Liabilities and Stockholders' Equity:
Savings, NOW & money market deposits	$ 1,534,081	10,083	2.64	$ 1,677,634	5,775	1.40
Time deposits	643,854	6,977	4.36	507,475	3,069	2.45
Total interest-bearing deposits	2,177,935	17,060	3.15	2,185,109	8,844	1.64
Overnight advances	18,846	263	5.61	8,811	108	4.97
Other borrowings	504,258	6,012	4.80	369,867	3,433	3.76
Total interest-bearing liabilities	2,701,039	23,335	3.47	2,563,787	12,385	1.96
Checking deposits	1,126,593			1,281,991
Other liabilities	40,014			37,692
	3,867,646			3,883,470
Stockholders' equity	378,087			370,613
	$ 4,245,733			$ 4,254,083
Net interest income (2)		$ 18,416			$ 24,153
Net interest spread (2)			0.61%			1.60%
Net interest margin (2)			1.79%			2.34%

(1) The average balances of loans include nonaccrual loans. The average balances of investment securities exclude unrealized gains and losses on available-for-sale securities.

(2) Tax-equivalent basis. Interest income on a tax-equivalent basis includes the additional amount of interest income that would have been earned if the Corporation's investment in tax-exempt loans and investment securities had been made in loans and investment securities subject to federal income taxes yielding the same after-tax income. The tax-equivalent amount of $1.00 of nontaxable income was $1.27 for each period presented using the statutory federal income tax rate of 21%.

7

XML

Document And Entity Information	Apr. 25, 2024
Document Information [Line Items]
Entity, Registrant Name	The First of Long Island Corporation
Document, Type	8-K
Document, Period End Date	Apr. 25, 2024
Entity, Incorporation, State or Country Code	NY
Entity, File Number	001-32964
Entity, Tax Identification Number	11-2672906
Entity, Address, Address Line One	275 Broadhollow Road
Entity, Address, City or Town	Melville
Entity, Address, State or Province	NY
Entity, Address, Postal Zip Code	11747
City Area Code	516
Local Phone Number	671-4900
Written Communications	false
Soliciting Material	false
Pre-commencement Tender Offer	false
Pre-commencement Issuer Tender Offer	false
Title of 12(b) Security	Common stock, $0.10 par value per share
Trading Symbol	FLIC
Security Exchange Name	NASDAQ
Entity, Emerging Growth Company	false
Amendment Flag	false
Entity, Central Index Key	0000740663