The First of Long Island (FLIC) Q3 2024 earnings summary

Executive summary

• Net income for the first nine months of 2024 was $13.8 million, down from $20.2 million year-over-year; adjusted net income was $14.8 million, excluding merger and branch consolidation expenses.

• Diluted EPS was $0.61 versus $0.89 last year.

• Quarterly net income for Q3 2024 was $4.6 million, a 32.4% decrease from Q3 2023; adjusted Q3 net income was $5.6 million.

• Book value per share increased to $17.25 at September 30, 2024, from $16.83 at year-end 2023.

• Announced merger with ConnectOne Bancorp, Inc. in an all-stock transaction, subject to regulatory and shareholder approval.

Financial highlights

• Net interest income for the first nine months of 2024 was $55.2 million, down $11.7 million (17.5%) year-over-year, driven by higher interest expense.

• Interest expense rose $23.4 million, partially offset by an $11.7 million increase in interest income.

• Noninterest income, excluding a $3.5 million securities loss in 2023, increased $1.4 million (19.1%) year-over-year.

• Noninterest expense increased $254,000 (0.5%) for the nine months, mainly due to $1.4 million in merger and branch consolidation costs; adjusted noninterest expense decreased $1.2 million.

• Income tax expense decreased $2.7 million, with the effective tax rate dropping to (0.3)% from 11.6% year-over-year.

Outlook and guidance

• Management expects the merger with ConnectOne to close in mid-2025, subject to customary conditions.

• Management expects the positive trend in net interest margin to continue into Q4 2024.

• The Bank anticipates continued focus on liquidity, capital strength, and operational efficiency.

• Dividend policy is constrained by the merger agreement, limiting increases after June 30, 2025.

• The Board and management continue to evaluate the quarterly dividend to maximize shareholder value.