The First of Long Island (FLIC) Q2 2024 earnings summary

Executive summary

• Net income for Q2 2024 was $4.8 million, up from $4.4 million in the prior quarter but down from $6.9 million in Q2 2023; six-month net income was $9.2 million, down from $13.4 million year-over-year.

• Earnings per share were $0.21 for Q2 2024, matching the declared dividend; diluted EPS for the first six months was $0.41 versus $0.59 year-over-year.

• Returns on average assets and equity for Q2 2024 were 0.45% and 5.15%, respectively, both down year-over-year.

• Book value per share was $16.71 at June 30, 2024, compared to $16.83 at year-end 2023.

• Loan and deposit growth occurred during the quarter, with credit quality remaining strong and noninterest income and expense outperforming guidance.

Financial highlights

• Net interest income for Q2 2024 was $18.4 million, up $270,000 sequentially but down from $21.8 million in Q2 2023; six-month net interest income was $36.6 million, down from $45.5 million year-over-year.

• Noninterest income rose to $2.9 million in Q2 2024, exceeding both the prior quarter and year-ago period; recurring components such as BOLI and service charges increased year-over-year.

• Noninterest expense declined to $15.8 million in Q2 2024, down from $16.2 million in the prior quarter and $16.5 million year-over-year; six-month noninterest expense declined by $1.0 million.

• Provision for credit losses was $570,000 in Q2 2024, compared to a reversal of $1.1 million in Q2 2023.

• Deposits grew by $37 million in Q2 2024, while average deposits declined 2.4% year-over-year; $143 million in wholesale borrowings were paid down.

Outlook and guidance

• Net interest margin is expected to stabilize or improve, with each 25 basis point Fed rate cut estimated to add 4-5 basis points to margin.

• Loan growth for 2024 is projected to be low single digits, with continued focus on commercial lending and no plans to resume residential mortgage originations.

• Management expects approximately $51.2 million in cash inflows from the investment securities portfolio and $361 million from the mortgage loan portfolio over the next twelve months.

• Noninterest income and expense are expected to remain consistent for the remainder of 2024.

• Interest rate sensitivity modeling indicates that a 100–300 bps rate increase could reduce net interest income by up to 12.7% for the year ending June 30, 2025.