The First of Long Island Corporation (Nasdaq:FLIC), the parent
company of The First National Bank of Long Island, reported
increases in net income and earnings per share for the nine and
three months ended September 30, 2015. In the highlights that
follow, all comparisons are of the current nine or three month
period to the same period last year.
NINE MONTH HIGHLIGHTS
- Net Income increased 9.8% to $19.3 million from $17.6
million
- EPS increased 7.9% to $1.36 from $1.26
- Cash Dividends Per Share increased 9.4% to $.58 from
$.53
- 25.3% growth in the average balance of
Loans
- 14.9% growth in the average balance of Total
Deposits
- 13.2% growth in the average balance of
Noninterest-Bearing Checking Deposits
THIRD QUARTER HIGHLIGHTS
- Net Income increased 7.5% to $6.5 million from $6.1
million
- EPS increased 7.0% to $.46 from $.43
- Cash Dividends Per Share increased 5.3% to $.20 from
$.19
- Total Loans exceeded $2.1 billion and Total Assets
approximated $3.0 billion at quarter end
- The Credit Quality of the Bank’s loan and securities
portfolios remains excellent
- The Mortgage Loan Pipeline at quarter end remained
strong at $146 million
Analysis of Earnings – Nine Months Ended
September 30, 2015
Net income for the first nine months of 2015 was
$19.3 million, an increase of $1.7 million, or 9.8%, over the same
period last year. The increase is attributable to increases
in net interest income of $5.5 million, or 11.2%, and noninterest
income, before securities gains, of $194,000, or 3.5%. The
positive impact of these items on earnings was partially offset by
an increase in noninterest expense, before debt extinguishment
costs, of $3.1 million, or 10.0%, and increases in the provision
for loan losses of $258,000 and income tax expense of $620,000.
The increase in net interest income was driven
by growth in average interest-earning assets of $350.5 million, or
14.6%, which is primarily comprised of growth in the average
balances of loans of $389.1 million, or 25.3%, and nontaxable
securities of $26.9 million, or 6.6%, partially offset by a
decrease in the average balance of taxable securities of $72.8
million, or 16.8%. The shift from taxable securities to
better yielding loans and nontaxable securities partially mitigated
the negative impact on net interest income of a low interest rate
environment. Growth in loans and nontaxable securities, to
the extent not funded by the decline in taxable securities, was
funded by growth in the average balances of noninterest-bearing
checking deposits of $82.7 million, or 13.2%, interest-bearing
deposits of $197.8 million, or 15.7%, and long-term debt of $69.8
million, or 23.7%. The increase in long-term debt resulted
from management’s desire to reduce the impact that an eventual
increase in interest rates could have on the Bank’s earnings.
Intermediate and long-term interest rates remain
low and volatile. In a low interest rate environment: (1)
loans are sometimes originated and investments are sometimes made
at yields lower than existing portfolio yields; (2) some loans
prepay in full resulting in the immediate writeoff of deferred
costs while the rates on other loans are modified downward; (3)
prepayment speeds on mortgage securities are elevated resulting in
the faster amortization of purchase premiums; (4) the benefit of no
cost funding in the form of noninterest-bearing checking deposits
and capital is suppressed; and (5) the Bank’s continuing ability to
reduce deposit rates diminishes. These factors are primarily
responsible for a 12 basis point decline in net interest margin and
an 11 basis point decline in net interest spread when comparing the
current nine month period to the same period last year. These
factors also explain why strong growth in the average balance of
loans of 25.3% was accompanied by lesser growth of 11.2% in net
interest income.
The $194,000 increase in noninterest income
before securities gains is primarily attributable to real estate
and sales tax refunds in the first nine months of 2015 of $204,000
and $91,000, respectively, and increases of $274,000 and $68,000 in
cash value accretion on bank-owned life insurance and credit card
processing fees. The positive impact of these items was
partially offset by a decrease in service charges on deposit
accounts of $322,000 resulting largely from a decrease in deposit
account overdraft activity and a net gain of $165,000 during the
2014 period on the sale of loans held-for-sale. Cash
value accretion increased due to a purchase of bank-owned life
insurance with an initial cash value of $16.9 million during the
fourth quarter of 2014. Also contributing to the increase in
noninterest income was the successful deployment by management in
recent years of a variety of noninterest income initiatives which
resulted in growth in wire transfer service charges, debit card
interchange fees and ATM fees.
The increase in noninterest expense before debt
extinguishment costs of $3.1 million is primarily attributable to
increases in salaries of $1.7 million, or 12.3%, employee benefits
expense of $793,000, or 22.3%, occupancy and equipment expense of
$192,000, or 3.0%, and growth-related increases in FDIC insurance
expense and the Bank’s OCC assessment. The increase in
salaries is primarily due to branch openings, additions to staff in
the back office, normal annual salary adjustments and higher
stock-based compensation expense. The increase in employee
benefits expense is largely due to an increase in incentive
compensation cost, an increase in payroll tax expense resulting
from additions to staff, an increase in group health insurance
expense resulting from increases in staff count and the rates being
paid for group health insurance and an increase in supplemental
executive retirement expense. The increase in occupancy and
equipment expense is largely due to branch openings, increases in
general maintenance and repairs expense and the cost of servicing
equipment.
During the second quarter of 2015 the Bank
completed a deleveraging transaction that involved the sale of
$61.8 million of available-for-sale securities at a gain of
$995,000 and utilization of the resulting proceeds to prepay $63.5
million of long-term debt at a cost of $1,084,000. The
primary purpose of the transaction was to reduce the size of the
Corporation’s balance sheet and thereby provide capital to
accommodate future growth. Since the yield on the securities
sold was approximately equal to the cost of the prepaid debt, the
transaction will have negligible impact on net interest income on a
going forward basis and will serve to improve net interest
margin.
The $620,000 increase in income tax expense is
attributable to an increase in pretax earnings and changes in New
York City income tax law effective January 1, 2015, as partially
offset by changes in New York State tax law also effective January
1, 2015. The changes in New York City income tax law resulted
in a one-time charge of $402,000 to establish a New York City
deferred income tax liability as of the effective date of the
legislation and an increase in income tax expense of $60,000 for
the period.
Analysis of Earnings – Third Quarter 2015
Versus Third Quarter 2014
Net income for the third quarter of 2015 was
$6.5 million, an increase of $457,000, or 7.5%, over the comparable
period last year. The increase is primarily attributable to
an increase in net interest income of $1.7 million, or 9.8%,
partially offset by increases in salaries and employee benefits
expense of $513,000 and $405,000, respectively, and a $225,000 gain
during the third quarter of 2014 on the sale of a loan
held-for-sale. The increases in net interest income, salaries
and employee benefits expense occurred for substantially the same
reasons discussed above with respect to the nine month periods.
Analysis of Earnings – Third Quarter
Versus Second Quarter 2015
Net income for the third quarter of 2015
increased $235,000 from $6.3 million earned in the second quarter.
The increase is primarily attributable to an increase in net
interest income of $439,000 and a decrease in income tax expense of
$507,000, partially offset by increases in salaries and employee
benefits expense of $146,000 and $232,000, respectively, and a
decrease in noninterest income, before securities gains, of
$131,000. The increases in net interest income, salaries and
employee benefits expense occurred for substantially the same
reasons discussed above with respect to the nine month
periods. The decrease in income tax expense was primarily
attributable to the aforementioned charge of $402,000 during the
second quarter relating to changes in New York City income tax
law. The decrease in noninterest income was largely
attributable to a real estate tax refund in the second quarter.
Asset Quality
The Bank’s allowance for loan losses to total
loans (reserve coverage ratio) decreased by 8 basis points from
1.29% at year-end 2014 to 1.21% at September 30, 2015. The
decrease in the reserve coverage ratio is primarily due to a
continued improvement in economic conditions, partially offset by
an increase in specific reserves on loans individually deemed to be
impaired.
The $2.4 million provision for loan losses in
the first nine months of 2015 is primarily attributable to loan
growth and the establishment of a $386,000 specific reserve on two
loans individually deemed to be impaired, partially offset by a
continued improvement in economic conditions. The $2.1
million provision for loan losses in the first nine months of 2014
was primarily attributable to loan growth and net chargeoffs, as
partially offset by an improvement in economic conditions, a
decrease in specific reserves on loans individually deemed to be
impaired and a reduction in watch, special mention and substandard
loans.
The credit quality of the Bank’s loan portfolio
remains excellent. Nonaccrual loans amounted to $3.2 million,
or .15% of total loans outstanding, at September 30, 2015, compared
to $1.7 million, or .09%, at December 31, 2014. The increase
in nonaccrual loans is primarily attributable to three loans
transferred to nonaccrual status, partially offset by loan sales
and paydowns. Troubled debt restructurings increased during
the first nine months of 2015 to $4.5 million at September 30,
2015. Of this amount, $3.6 million are performing in
accordance with their modified terms and $918,000 are nonaccrual
and included in the aforementioned amount of nonaccrual
loans. Loans past due 30 through 89 days amounted to $1.2
million, or .05% of total loans outstanding, at September 30, 2015,
compared to $2.2 million, or .12%, at December 31, 2014.
Management does not believe that the increase in nonaccrual loans
and troubled debt restructurings is indicative of deterioration in
the overall credit quality of the Bank’s loan portfolio.
The credit quality of the Bank’s securities
portfolio also remains excellent. The Bank’s mortgage
securities are backed by mortgages underwritten on conventional
terms, with 70% of these securities being full faith and credit
obligations of the U.S. government and the balance being
obligations of U.S. government sponsored entities. The
remainder of the Bank’s securities portfolio principally consists
of high quality, general obligation municipal securities rated AA
or better by major rating agencies. In selecting municipal
securities for purchase, the Bank uses credit agency ratings for
screening purposes only and then performs its own credit
analysis. On an ongoing basis, the Bank periodically assesses
the credit strength of the municipal securities in its portfolio
and makes decisions to hold or sell based on such assessments.
Capital
The Corporation’s Tier 1 leverage, Common Equity
Tier 1 risk-based, Tier 1 risk-based and Total risk-based capital
ratios were approximately 8.2%, 13.4%, 13.4% and 14.7%,
respectively, at September 30, 2015. The strength of the
Corporation’s balance sheet from both a capital and asset quality
perspective positions the Corporation for continued growth in a
measured and disciplined fashion.
Effective with the third quarter 2015 cash
dividend, the Corporation made a change to the stock purchase
component of its Dividend Reinvestment and Stock Purchase Plan (the
“Plan”). The amount of stock that participants in the Plan
can purchase on a quarterly basis was increased from $7,500 to
$15,000. This change is expected to provide additional
capital that can be used to accommodate future growth.
Key Strategic Initiatives
Key strategic initiatives will continue to
include loan and deposit growth through effective relationship
management, targeted solicitation efforts, new product offerings
and continued expansion of the Bank’s branch distribution system.
Additionally, with respect to loan growth, the Bank will continue
to develop and diversify its existing broker and correspondent
relationships. All loans originated through such
relationships are underwritten by Bank personnel. The Bank
currently has 42 branches, anticipates opening three new branches
over the next twelve months and on an ongoing basis continues to
evaluate sites for further branch expansion.
Challenges We Face
Intermediate and long-term interest rates are
low and volatile and impacted by both national and global
forces. Such rates could remain low for the foreseeable
future and thereby cause both investing and lending rates to be
suboptimal. There is significant price competition for loans
in the Bank’s marketplace and little room for the Bank to further
reduce its deposit rates. Higher yielding loans continue to prepay
and are replaced with lower yielding loans and there is an ongoing
need, from an interest rate risk perspective, to term-fund a
portion of the Bank’s loan growth with time deposits and wholesale
borrowings. In the current interest rate environment, the
spread between lending rates and term-funding rates is relatively
small. These factors could result in a decline in net
interest margin from its current level and will continue to inhibit
earnings growth for the foreseeable future.
The banking industry continues to be faced with
new and complex regulatory requirements and enhanced supervisory
oversight. These factors are exerting downward pressure on
revenues and upward pressure on required capital levels and the
cost of doing business.
CONSOLIDATED BALANCE SHEETS |
|
(Unaudited) |
|
|
|
|
|
|
|
|
|
9/30/15 |
|
12/31/14 |
|
|
|
(in thousands) |
|
|
|
|
|
Assets: |
|
|
|
|
|
Cash and cash equivalents |
|
$ |
33,364 |
|
|
$ |
32,944 |
|
|
|
|
|
|
|
|
Investment securities: |
|
|
|
|
|
Held-to-maturity, at amortized cost
(fair value of $19,470 and $22,870) |
|
|
18,688 |
|
|
|
21,833 |
|
|
Available-for-sale, at fair
value |
|
|
752,036 |
|
|
|
774,145 |
|
|
|
|
|
770,724 |
|
|
|
795,978 |
|
|
|
|
|
|
|
|
Loans: |
|
|
|
|
|
Commercial and industrial |
|
|
85,340 |
|
|
|
77,140 |
|
|
Secured by real estate: |
|
|
|
|
|
Commercial mortgages |
|
|
954,371 |
|
|
|
858,975 |
|
|
Residential mortgages |
|
|
972,523 |
|
|
|
779,994 |
|
|
Home equity lines |
|
|
84,806 |
|
|
|
83,109 |
|
|
Consumer and other |
|
|
5,849 |
|
|
|
5,601 |
|
|
|
|
|
2,102,889 |
|
|
|
1,804,819 |
|
|
Allowance for loan losses |
|
|
(25,520 |
) |
|
|
(23,221 |
) |
|
|
|
|
2,077,369 |
|
|
|
1,781,598 |
|
|
|
|
|
|
|
|
Restricted stock, at cost |
|
|
21,174 |
|
|
|
23,304 |
|
|
Bank premises and equipment,
net |
|
|
29,435 |
|
|
|
27,854 |
|
|
Bank-owned life insurance |
|
|
32,233 |
|
|
|
31,568 |
|
|
Pension plan assets, net |
|
|
16,787 |
|
|
|
16,421 |
|
|
Other assets |
|
|
12,084 |
|
|
|
11,827 |
|
|
|
|
$ |
2,993,170 |
|
|
$ |
2,721,494 |
|
|
|
|
|
|
|
|
Liabilities: |
|
|
|
|
|
Deposits: |
|
|
|
|
|
Checking |
|
$ |
766,427 |
|
|
$ |
655,753 |
|
|
Savings, NOW and money market |
|
|
1,215,675 |
|
|
|
1,000,325 |
|
|
Time, $100,000 and over |
|
|
206,644 |
|
|
|
208,745 |
|
|
Time, other |
|
|
115,826 |
|
|
|
120,202 |
|
|
|
|
|
2,304,572 |
|
|
|
1,985,025 |
|
|
|
|
|
|
|
|
Short-term borrowings |
|
|
63,100 |
|
|
|
136,486 |
|
|
Long-term debt |
|
|
356,862 |
|
|
|
345,000 |
|
|
Accrued expenses and other
liabilities |
|
|
14,026 |
|
|
|
13,247 |
|
|
Deferred income taxes payable |
|
|
7,330 |
|
|
|
8,433 |
|
|
|
|
|
2,745,890 |
|
|
|
2,488,191 |
|
|
Stockholders' Equity: |
|
|
|
|
|
Common stock, par value $.10 per
share: |
|
|
|
|
|
Authorized, 40,000,000 shares |
|
|
|
|
|
Issued and outstanding, 14,043,183
and 13,887,134 shares |
|
|
1,404 |
|
|
|
1,389 |
|
|
Surplus |
|
|
54,792 |
|
|
|
51,009 |
|
|
Retained earnings |
|
|
181,273 |
|
|
|
170,120 |
|
|
|
|
|
237,469 |
|
|
|
222,518 |
|
|
Accumulated other comprehensive
income, net of tax |
|
|
9,811 |
|
|
|
10,785 |
|
|
|
|
|
247,280 |
|
|
|
233,303 |
|
|
|
|
$ |
2,993,170 |
|
|
$ |
2,721,494 |
|
|
|
|
|
|
|
|
CONSOLIDATED STATEMENTS OF
INCOME |
|
(Unaudited) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Nine Months Ended |
|
Three Months Ended |
|
|
|
9/30/15 |
|
9/30/14 |
|
9/30/15 |
|
9/30/14 |
|
|
|
(dollars in thousands) |
|
|
|
|
|
|
|
|
|
Interest and dividend
income: |
|
|
|
|
|
|
|
|
|
Loans |
|
$ |
51,328 |
|
|
$ |
43,621 |
|
|
$ |
17,637 |
|
|
$ |
15,329 |
|
|
Investment securities: |
|
|
|
|
|
|
|
|
|
Taxable |
|
|
6,116 |
|
|
|
7,145 |
|
|
|
1,874 |
|
|
|
2,336 |
|
|
Nontaxable |
|
|
10,184 |
|
|
|
10,003 |
|
|
|
3,392 |
|
|
|
3,394 |
|
|
|
|
|
67,628 |
|
|
|
60,769 |
|
|
|
22,903 |
|
|
|
21,059 |
|
|
Interest
expense: |
|
|
|
|
|
|
|
|
|
Savings, NOW and money market
deposits |
|
|
1,840 |
|
|
|
1,432 |
|
|
|
690 |
|
|
|
474 |
|
|
Time deposits |
|
|
4,565 |
|
|
|
4,539 |
|
|
|
1,495 |
|
|
|
1,607 |
|
|
Short-term borrowings |
|
|
113 |
|
|
|
124 |
|
|
|
19 |
|
|
|
50 |
|
|
Long-term debt |
|
|
5,877 |
|
|
|
4,989 |
|
|
|
1,766 |
|
|
|
1,686 |
|
|
|
|
|
12,395 |
|
|
|
11,084 |
|
|
|
3,970 |
|
|
|
3,817 |
|
|
Net interest income |
|
|
55,233 |
|
|
|
49,685 |
|
|
|
18,933 |
|
|
|
17,242 |
|
|
Provision for loan
losses |
|
|
2,402 |
|
|
|
2,144 |
|
|
|
1,049 |
|
|
|
1,221 |
|
|
Net interest income after provision
for loan losses |
|
|
52,831 |
|
|
|
47,541 |
|
|
|
17,884 |
|
|
|
16,021 |
|
|
|
|
|
|
|
|
|
|
|
|
Noninterest
income: |
|
|
|
|
|
|
|
|
|
Investment Management Division
income |
|
|
1,548 |
|
|
|
1,557 |
|
|
|
509 |
|
|
|
536 |
|
|
Service charges on deposit
accounts |
|
|
1,981 |
|
|
|
2,303 |
|
|
|
656 |
|
|
|
715 |
|
|
Net gains on sales of
securities |
|
|
1,133 |
|
|
|
141 |
|
|
|
- |
|
|
|
23 |
|
|
Other |
|
|
2,196 |
|
|
|
1,671 |
|
|
|
654 |
|
|
|
754 |
|
|
|
|
|
6,858 |
|
|
|
5,672 |
|
|
|
1,819 |
|
|
|
2,028 |
|
|
Noninterest
expense: |
|
|
|
|
|
|
|
|
|
Salaries |
|
|
15,134 |
|
|
|
13,482 |
|
|
|
5,114 |
|
|
|
4,601 |
|
|
Employee benefits |
|
|
4,347 |
|
|
|
3,554 |
|
|
|
1,608 |
|
|
|
1,203 |
|
|
Occupancy and equipment |
|
|
6,639 |
|
|
|
6,447 |
|
|
|
2,070 |
|
|
|
2,121 |
|
|
Debt extinguishment |
|
|
1,084 |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
Other |
|
|
7,367 |
|
|
|
6,949 |
|
|
|
2,590 |
|
|
|
2,222 |
|
|
|
|
|
34,571 |
|
|
|
30,432 |
|
|
|
11,382 |
|
|
|
10,147 |
|
|
|
|
|
|
|
|
|
|
|
|
Income before income taxes |
|
|
25,118 |
|
|
|
22,781 |
|
|
|
8,321 |
|
|
|
7,902 |
|
|
Income tax expense |
|
|
5,846 |
|
|
|
5,226 |
|
|
|
1,810 |
|
|
|
1,848 |
|
|
Net Income |
|
$ |
19,272 |
|
|
$ |
17,555 |
|
|
$ |
6,511 |
|
|
$ |
6,054 |
|
|
|
|
|
|
|
|
|
|
|
|
Share and Per Share
Data: |
|
|
|
|
|
|
|
|
|
Weighted Average Common & |
|
|
|
|
|
|
|
|
|
Common Equivalent Shares |
|
|
14,139,973 |
|
|
|
13,932,633 |
|
|
|
14,195,677 |
|
|
|
13,965,551 |
|
|
Basic EPS |
|
$ |
1.38 |
|
|
$ |
1.27 |
|
|
$ |
.46 |
|
|
$ |
.44 |
|
|
Diluted EPS |
|
$ |
1.36 |
|
|
$ |
1.26 |
|
|
$ |
.46 |
|
|
$ |
.43 |
|
|
Cash Dividends Declared |
|
$ |
.58 |
|
|
$ |
.53 |
|
|
$ |
.20 |
|
|
$ |
.19 |
|
|
|
|
|
|
|
|
|
|
|
|
FINANCIAL RATIOS |
|
(Unaudited) |
|
|
|
|
|
|
|
|
|
|
|
ROA |
|
|
.91 |
% |
|
|
.95 |
% |
|
|
.89 |
% |
|
|
.94 |
% |
|
ROE |
|
|
10.79 |
% |
|
|
10.60 |
% |
|
|
10.71 |
% |
|
|
10.50 |
% |
|
Net
Interest Margin |
|
|
2.93 |
% |
|
|
3.05 |
% |
|
|
2.94 |
% |
|
|
3.08 |
% |
|
Dividend
Payout Ratio |
|
|
42.65 |
% |
|
|
42.06 |
% |
|
|
43.48 |
% |
|
|
44.19 |
% |
|
|
|
|
|
|
|
|
|
|
|
PROBLEM AND POTENTIAL
PROBLEM LOANS AND ASSETS |
|
(Unaudited) |
|
|
|
|
|
|
|
|
|
|
|
9/30/15 |
|
12/31/14 |
|
|
|
|
(in thousands) |
|
|
|
|
|
|
|
|
|
Loans, excluding
troubled debt restructurings: |
|
|
|
|
|
|
Past due 30 through 89 days |
|
$ |
1,148 |
|
|
$ |
2,186 |
|
|
|
Past due 90 days or more and still
accruing |
|
|
- |
|
|
|
- |
|
|
|
Nonaccrual |
|
|
2,308 |
|
|
|
424 |
|
|
|
|
|
|
3,456 |
|
|
|
2,610 |
|
|
|
Troubled debt
restructurings: |
|
|
|
|
|
|
Performing according to their
modified terms |
|
|
3,612 |
|
|
|
704 |
|
|
|
Past due 30 through 89 days |
|
|
6 |
|
|
|
- |
|
|
|
Past due 90 days or more and still
accruing |
|
|
- |
|
|
|
- |
|
|
|
Nonaccrual |
|
|
918 |
|
|
|
1,280 |
|
|
|
|
|
|
4,536 |
|
|
|
1,984 |
|
|
|
Total past due,
nonaccrual and restructured loans: |
|
|
|
|
|
|
Restructured and performing
according to their modified terms |
|
|
3,612 |
|
|
|
704 |
|
|
|
Past due 30 through 89 days |
|
|
1,154 |
|
|
|
2,186 |
|
|
|
Past due 90 days or more and still
accruing |
|
|
- |
|
|
|
- |
|
|
|
Nonaccrual |
|
|
3,226 |
|
|
|
1,704 |
|
|
|
|
|
|
7,992 |
|
|
|
4,594 |
|
|
|
Other real estate
owned |
|
|
- |
|
|
|
- |
|
|
|
|
|
$ |
7,992 |
|
|
$ |
4,594 |
|
|
|
|
|
|
|
|
|
|
Allowance for loan
losses |
|
$ |
25,520 |
|
|
$ |
23,221 |
|
|
|
Allowance for loan
losses as a percentage of total loans |
|
|
1.21 |
% |
|
|
1.29 |
% |
|
|
Allowance for loan
losses as a multiple of nonaccrual loans |
|
|
7.9 |
x |
|
|
13.6 |
x |
|
|
|
|
|
|
|
|
|
AVERAGE BALANCE SHEET, INTEREST RATES AND
INTEREST DIFFERENTIAL |
|
(Unaudited) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Nine Months Ended September 30, |
|
|
|
2015 |
|
2014 |
|
|
|
Average |
|
Interest/ |
|
Average |
|
Average |
|
Interest/ |
|
Average |
|
|
|
Balance |
|
Dividends |
|
Rate |
|
Balance |
|
Dividends |
|
Rate |
|
Assets: |
|
(in thousands) |
|
Interest-bearing bank balances |
|
$ |
22,099 |
|
|
$ |
42 |
|
|
.25 |
% |
|
$ |
14,826 |
|
|
$ |
27 |
|
|
.24 |
% |
|
Investment securities: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Taxable |
|
|
360,919 |
|
|
|
6,074 |
|
|
2.24 |
|
|
|
433,680 |
|
|
|
7,118 |
|
|
2.19 |
|
|
Nontaxable (1) |
|
|
436,941 |
|
|
|
15,430 |
|
|
4.71 |
|
|
|
410,064 |
|
|
|
15,156 |
|
|
4.93 |
|
|
Loans
(1) |
|
|
1,929,159 |
|
|
|
51,339 |
|
|
3.55 |
|
|
|
1,540,025 |
|
|
|
43,632 |
|
|
3.78 |
|
|
Total
interest-earning assets |
|
|
2,749,118 |
|
|
|
72,885 |
|
|
3.53 |
|
|
|
2,398,595 |
|
|
|
65,933 |
|
|
3.67 |
|
|
Allowance for loan losses |
|
|
(24,052 |
) |
|
|
|
|
|
|
|
(21,210 |
) |
|
|
|
|
|
|
Net
interest-earning assets |
|
|
2,725,066 |
|
|
|
|
|
|
|
|
2,377,385 |
|
|
|
|
|
|
|
Cash and
due from banks |
|
|
28,723 |
|
|
|
|
|
|
|
|
26,899 |
|
|
|
|
|
|
|
Premises
and equipment, net |
|
|
28,720 |
|
|
|
|
|
|
|
|
25,893 |
|
|
|
|
|
|
|
Other
assets |
|
|
59,100 |
|
|
|
|
|
|
|
|
43,367 |
|
|
|
|
|
|
|
|
|
$ |
2,841,609 |
|
|
|
|
|
|
|
$ |
2,473,544 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Liabilities and Stockholders' Equity: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Savings,
NOW & money market deposits |
|
$ |
1,134,741 |
|
|
|
1,840 |
|
|
.22 |
|
|
$ |
951,400 |
|
|
|
1,432 |
|
|
.20 |
|
|
Time
deposits |
|
|
322,312 |
|
|
|
4,565 |
|
|
1.89 |
|
|
|
307,874 |
|
|
|
4,539 |
|
|
1.97 |
|
|
Total
interest-bearing deposits |
|
|
1,457,053 |
|
|
|
6,405 |
|
|
.59 |
|
|
|
1,259,274 |
|
|
|
5,971 |
|
|
.63 |
|
|
Short-term borrowings |
|
|
50,705 |
|
|
|
113 |
|
|
.30 |
|
|
|
51,726 |
|
|
|
124 |
|
|
.32 |
|
|
Long-term debt |
|
|
363,937 |
|
|
|
5,877 |
|
|
2.16 |
|
|
|
294,176 |
|
|
|
4,989 |
|
|
2.27 |
|
|
Total
interest-bearing liabilities |
|
|
1,871,695 |
|
|
|
12,395 |
|
|
.89 |
|
|
|
1,605,176 |
|
|
|
11,084 |
|
|
.92 |
|
|
Checking
deposits |
|
|
709,896 |
|
|
|
|
|
|
|
|
627,215 |
|
|
|
|
|
|
|
Other
liabilities |
|
|
21,250 |
|
|
|
|
|
|
|
|
19,657 |
|
|
|
|
|
|
|
|
|
|
2,602,841 |
|
|
|
|
|
|
|
|
2,252,048 |
|
|
|
|
|
|
|
Stockholders' equity |
|
|
238,768 |
|
|
|
|
|
|
|
|
221,496 |
|
|
|
|
|
|
|
|
|
$ |
2,841,609 |
|
|
|
|
|
|
|
$ |
2,473,544 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net
interest income (1) |
|
|
|
$ |
60,490 |
|
|
|
|
|
|
|
$ |
54,849 |
|
|
|
|
|
Net interest spread
(1) |
|
|
|
|
|
2.64 |
% |
|
|
|
|
|
2.75 |
% |
|
Net
interest margin (1) |
|
|
|
|
|
2.93 |
% |
|
|
|
|
|
3.05 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1)
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 $1.52 in each period presented, based on a
Federal income tax rate of 34%. |
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”. 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; demands 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. The forward-looking statements are made as of the
date of this report, 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 September 30, 2015. The Form 10-Q will be available
through the Bank’s website at www.fnbli.com on or about
November 9, 2015, after it is electronically filed with the
Securities and Exchange Commission (“SEC”). Our SEC filings
are also available on the SEC’s website at www.sec.gov. You
may also read and copy any document we file with the SEC at the
SEC’s public reference room at 100 F Street, N.E., Room 1580,
Washington, DC 20549. You should call 1-800-SEC-0330 for more
information on the public reference room.
For More Information Contact:
Mark D. Curtis, EVP, CFO and Treasurer
(516) 671-4900, Ext. 585
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