The First of Long Island (FLIC) Q1 2025 earnings summary

Executive summary

• Net income for Q1 2025 was $3.8 million, down from $4.4 million in Q1 2024; diluted EPS was $0.17 versus $0.20 year-over-year.

• Return on average assets was 0.37% and return on average equity was 3.98% for Q1 2025; net interest margin improved to 1.91%.

• Net interest income increased by $661,000 year-over-year, but was offset by higher provision for credit losses, increased noninterest expense, and higher income tax expense.

• Noninterest expense rose mainly due to merger-related costs, system conversion expenses, and higher legal fees.

• The pending merger with ConnectOne Bancorp, Inc. is expected to close in Q2 2025, subject to regulatory approvals.

Financial highlights

• Net interest income for Q1 2025 was $21.3 million, down from $23.3 million in Q1 2024.

• Provision for credit losses was $168,000 in Q1 2025, compared to no provision in Q1 2024; ACL to total loans rose to 0.89%.

• Noninterest income decreased by $57,000 year-over-year, mainly due to nonrecurring items in 2024.

• Noninterest expense increased by $922,000, driven by $230,000 in merger expenses, $468,000 in system conversion costs, and higher legal fees.

• Book value per share was $16.91 at March 31, 2025, up from $16.77 at year-end 2024; quarterly cash dividend of $0.21 per share declared.

Outlook and guidance

• The merger with ConnectOne Bancorp, Inc. is anticipated to close in Q2 2025, pending regulatory and shareholder approvals.

• No share repurchases are expected prior to the merger due to restrictions in the Merger Agreement.