Executive Summary

Q1 2025 earnings: Net income $3.756M and diluted EPS $0.17; sequential improvement vs Q4 2024 on higher net interest income and lower noninterest expense, but down year over year vs $4.435M and $0.20 EPS in Q1 2024 .
Net interest margin expanded 8 bps QoQ to 1.91% (from 1.83%), aided by lower funding costs; ROA 0.37% and ROE 3.98% .
Liquidity and capital remained strong: $878.1M available liquidity; uninsured deposits 49.5%; leverage ratio ~10.29%; book value per share $16.91; quarterly dividend of $0.21 declared .
Merger update: FDIC approval received; closing expected on or about June 1, 2025, a near-term stock catalyst as integration and cost synergies unfold .
Wall Street consensus from S&P Global was unavailable for FLIC this quarter; therefore, we cannot assess beat/miss vs estimates (S&P Global data unavailable for FLIC due to mapping) .

What Went Well and What Went Wrong

What Went Well

Sequential earnings improvement: Net income +$512K QoQ, driven by +$795K net interest income on an 8 bps NIM lift and lower noninterest expense (branch consolidation costs in Q4 did not recur), despite higher taxes and a credit loss provision .
Credit quality remained solid: ACL coverage 0.89% of total loans; allowance multiple of nonaccruals 8.1x; management reiterated overall loan and securities credit quality remains strong .
Margin recovery narrative: “Net interest margin bottomed out during the first quarter of 2024 and began its recovery during the remainder of the year,” with continued linked-quarter improvement noted by management in recent periods .

What Went Wrong

Year-over-year pressure: EPS fell to $0.17 from $0.20; net income -$679K YoY as higher noninterest expense (+$922K) and a $168K provision for credit losses offset net interest income gains; tax expense +$193K YoY with a higher effective rate (11.5% vs 6.2%) .
Noninterest income modestly lower YoY (-$57K) due to lapping one-time benefits (2024 real estate tax refunds, BOLI death benefits, joint marketing fee, extra service charge cycle), partially offset by merchant fees and BOLI accretion .
Delinquencies rose: Past due 30–89 days increased to $7.452M at 3/31/25 vs $270K at 12/31/24; nonaccruals ticked up to $3.510M from $3.229M, warranting monitoring into Q2 .

Financial Results

Sequential comparison (Q3 2024 → Q4 2024 → Q1 2025)

Metric	Q3 2024	Q4 2024	Q1 2025
Interest & Dividend Income ($USD Thousands)	$42,210	$41,078	$40,115
Net Interest Income ($USD Thousands)	$18,600	$18,027	$18,822
Provision for Credit Losses ($USD Thousands)	$170	$(381) (reversal)	$168
Noninterest Income ($USD Thousands)	$3,210	$3,220	$2,717
Noninterest Expense ($USD Thousands)	$17,451	$18,658	$17,128
Income Before Taxes ($USD Thousands)	$4,189	$2,970	$4,243
Income Tax Expense ($USD Thousands)	$883	$(274)	$487
Net Income ($USD Thousands)	$4,599	$3,244	$3,756
Diluted EPS ($USD)	$0.20	$0.14	$0.17
Net Interest Margin (%)	1.89%	1.83%	1.91%
ROA (%)	0.44%	0.31%	0.37%
ROE (%)	4.77%	3.35%	3.98%

Year-over-year comparison (Q1 2024 → Q1 2025)

Metric	Q1 2024	Q1 2025
Interest & Dividend Income ($USD Thousands)	$41,496	$40,115
Net Interest Income ($USD Thousands)	$18,161	$18,822
Provision for Credit Losses ($USD Thousands)	$0	$168
Noninterest Income ($USD Thousands)	$2,774	$2,717
Noninterest Expense ($USD Thousands)	$16,206	$17,128
Income Tax Expense ($USD Thousands)	$294	$487
Net Income ($USD Thousands)	$4,435	$3,756
Diluted EPS ($USD)	$0.20	$0.17
Net Interest Margin (%)	1.79%	1.91%
Effective Tax Rate (%)	6.2%	11.5%

Balance Sheet & Liquidity (Period-end, sequential)

Metric	Q3 2024 (9/30)	Q4 2024 (12/31)	Q1 2025 (3/31)
Total Assets ($USD Thousands)	$4,201,479	$4,119,336	$4,076,306
Total Deposits ($USD Thousands)	$3,327,064	$3,264,858	$3,295,585
Overnight Advances ($USD Thousands)	$0	$0	$0
Other Borrowings ($USD Thousands)	$445,000	$435,000	$360,000
Available Liquidity ($USD Thousands)	$915,700	$868,500	$878,100
Uninsured Deposits (% of Total)	45.9%	45.8%	49.5%
Leverage Ratio (%)	~10.13%	~10.12%	~10.29%
Book Value Per Share ($)	$17.25	$16.77	$16.91
Gross Loans ($USD Thousands)	$3,238,497	$3,221,607	$3,163,934
Allowance for Credit Losses ($USD Thousands)	$28,647	$28,331	$28,308
ACL as % of Total Loans (%)	0.88%	0.88%	0.89%

Credit Quality KPIs (Period-end)

Metric	Q3 2024 (9/30)	Q4 2024 (12/31)	Q1 2025 (3/31)
Past Due 30–89 Days ($USD Thousands)	$346	$270	$7,452
Nonaccrual Loans ($USD Thousands)	$2,899	$3,229	$3,510
ACL Multiple of Nonaccrual (x)	9.9x	8.8x	8.1x

Note: FLIC does not provide segment reporting; key revenue drivers are net interest income and noninterest income categories (e.g., BOLI, service charges, merchant card fees) .

Guidance Changes

Metric	Period	Previous Guidance	Current Guidance	Change
Dividend per share	Q1 2025	$0.21 per share declared in prior quarters	$0.21 declared on Mar 13, 2025	Maintained
Merger closing timeline	Q2 2025	Pending regulatory approvals; timeline not previously fixed publicly in Q4/Q1 earnings materials	Closing expected on/around June 1, 2025	Updated (timing specified)

Management did not issue formal quantitative guidance for revenue, margins, OpEx, or tax rate in Q1 2025 materials; tax commentary explained the effective rate increase YoY .

Earnings Call Themes & Trends

No Q1 2025 earnings call transcript was available; themes below reflect management’s narrative across recent quarters and the Q1 press release.

Topic	Previous Mentions (Q3 2024)	Previous Mentions (Q4 2024)	Current Period (Q1 2025)	Trend
Net interest margin recovery	CEO noted NIM increased 9 bps QoQ in Q3; optimism for continued improvement	Management stated NIM bottomed in Q1 2024; recovering through the year	NIM 1.91%, +8 bps QoQ, net interest income +$795K QoQ	Improving
Funding costs and liabilities	Repricing of wholesale funding at lower costs helped Q3 NIM	Easing rates allowed reduction of nonmatured deposit rates in H2 2024	Interest expense down $2.0M YoY; cost of interest-bearing liabilities down 16 bps YoY	Improving
Branch optimization	Lower occupancy costs from branch closures; expense control discussed	Branch consolidation expenses elevated in Q4	Lower linked-quarter noninterest expense; branch consolidation costs were in Q4 (nonrecurring)	Improving (expense normalization)
Credit quality	Reserve stable at ~0.88% of loans; overall credit quality strong	Credit quality strong; past dues low at YE	Overall credit quality strong; but higher past dues and slightly higher nonaccruals	Mixed
Liquidity & uninsured deposits	~$915.7M available liquidity; uninsured deposits 45.9%	$868.5M liquidity; uninsured 45.8%	$878.1M liquidity; uninsured 49.5%	Stable liquidity; higher uninsured mix
Tax rate dynamics	Lower effective tax rate in 2024 driven by REIT income share	Effective tax rate declined to (1.9%) for 2024	Effective tax rate up to 11.5% in Q1 2025 vs 6.2% prior-year; mix shift in REIT income	Higher near term
Merger execution	Transaction announced in Sep 2024 press flow	Focused on best positioning for pending merger	FDIC approval; closing expected ~June 1	Building toward close

Management Commentary

“Our team is focused on best positioning our company for the future and its pending merger with ConnectOne... our net interest margin bottomed out during the first quarter of 2024 and began its recovery during the remainder of the year... asset quality remains strong.” — Chris Becker, President & CEO (Q4 2024 release) .
“We are encouraged by a second consecutive linked quarter showing improvements in key financial metrics... margin increased nine basis points in the third quarter of 2024 when compared to second quarter of 2024.” — Chris Becker, President & CEO (Q3 2024 release) .
“We are pleased to have received FDIC approval to combine two highly complementary, client focused banks... we are well-positioned to serve First of Long Island’s distinguished client base.” — Frank Sorrentino III, Chairman & CEO, ConnectOne (Merger update) .
“I’m excited to move ahead with our proposed merger... our teams are ready to execute a seamless integration... I look forward to ensuring a smooth transition for our clients.” — Chris Becker (Merger update) .

Q&A Highlights

Management did not publish an earnings call transcript for Q1 2025; no Q&A themes or clarifications are available from a call. Q1 commentary is limited to the press release disclosures .

Estimates Context

S&P Global Wall Street consensus for FLIC was unavailable this quarter due to a data mapping issue; we are unable to compare EPS and revenue results against consensus. We will monitor for updates and include comparisons when S&P coverage is available.

Key Takeaways for Investors

Sequential earnings momentum returned: QoQ EPS rose to $0.17 and net interest income increased $795K as NIM expanded to 1.91%, suggesting rate and funding tailwinds are starting to benefit spread income .
YoY earnings pressure persists: Higher noninterest expense (+$922K), provision ($168K), and effective tax rate (11.5% vs 6.2%) outweighed net interest income improvements; watch OpEx normalization and tax rate trajectory into Q2 .
Credit quality broadly sound, but watch early cycle stress: Nonaccruals rose modestly; past due balances jumped to $7.452M; ACL coverage at 0.89% and 8.1x nonaccruals provides cushion, but trends merit closer monitoring .
Balance sheet resilience: Liquidity ~$878.1M, leverage ratio ~10.29%, and book value per share $16.91 support capital strength and dividend sustainability at $0.21/share .
Merger catalyst: FDIC approval with expected close around June 1, 2025 may unlock cost synergies and commercial growth opportunities under ConnectOne’s platform, a meaningful potential re-rating driver for the equity .
Funding costs easing: Interest expense declined YoY by $2.0M, and cost of interest-bearing liabilities fell 16 bps; continued funding repricing and lower wholesale costs should support NIM stabilization or improvement .
Actionable: Near term, monitor Q2 delinquency resolution, OpEx normalization as merger-related conversion costs roll off, and NIM trajectory. Medium term, focus on synergy realization and deposit mix post-merger, particularly uninsured deposit levels .

FIRST OF LONG ISLAND CORP (FLIC)·Q1 2025 Earnings Summary