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FIRST OF LONG ISLAND CORP (FLIC)·Q4 2024 Earnings Summary

Executive Summary

  • Q4 2024 was soft: diluted EPS fell to $0.14, down from $0.27 YoY and $0.20 QoQ, as higher salaries/benefits and branch consolidation costs outweighed a provision reversal; net interest income declined and margin slipped 6 bps QoQ to 1.83% .
  • Noninterest income showed resiliency with merchant services (+$186K QoQ), back-to-back swap fees ($233K), and BOLI benefit ($225K) supporting results despite weaker NII .
  • Liquidity remained ample at $868.5M with uninsured deposits stable at 45.8%; leverage ratio ~10.12% and BVPS $16.77 signal healthy capitalization .
  • No formal quantitative guidance was issued; management reiterated NIM bottomed in Q1 and began recovering through most of 2024, though Q4 saw a linked-quarter dip tied to lower fair value derivative income .
  • Pending merger with ConnectOne Bancorp (CNOB) is the near-term narrative catalyst, with management focused on positioning for integration and future opportunities .

What Went Well and What Went Wrong

What Went Well

  • Noninterest income strength: merchant card services (+$186K QoQ), swap fees ($233K), and BOLI benefit ($225K) provided offsets to NII pressure .
  • Capital and liquidity solid: $868.5M total liquidity; leverage ratio ~10.12%; BVPS $16.77; quarterly dividend maintained at $0.21/share .
  • Management emphasizing strategic positioning into the pending CNOB merger and highlighting asset quality as strong, with ACL at 0.88% of loans and provision reversal of $381K in Q4 .

What Went Wrong

  • Earnings pressure: Q4 diluted EPS dropped to $0.14 from $0.27 YoY and $0.20 QoQ, as salaries/benefits rose $2.4M YoY and $856K QoQ; branch consolidation expenses added $1.4M YoY and $840K QoQ .
  • Net interest income down: NII fell $1.9M YoY and $573K QoQ; NIM decreased 6 bps QoQ to 1.83%, driven largely by lower fair value derivative income .
  • Efficiency ratio elevated to 86.78% (vs. 65.47% YoY and 79.09% in Q3), reflecting revenue pressure and expense upticks in the quarter .

Financial Results

MetricQ4 2023Q3 2024Q4 2024
Diluted EPS ($)$0.27 $0.20 $0.14
Net Interest Income ($USD Millions)$19.96 $18.60 $18.03
Noninterest Income ($USD Millions)$2.40 $3.21 $3.22
Total Revenue ($USD Millions)$22.36 $21.81 $21.25
Net Interest Margin (%)2.00% 1.89% 1.83%
Efficiency Ratio (%)65.47% 79.09% 86.78%
ROA (%)0.57% 0.63% 0.31%
ROE (%)6.68% 7.34% 3.35%

Note: Total Revenue = Net Interest Income + Noninterest Income, per GAAP statement components .

Segment breakdown: Not applicable; FLIC reports as a single segment.

KPIs

KPIQ4 2024
Liquidity Available ($USD Millions)$868.5
Uninsured Deposits (% of Total)45.8%
Book Value Per Share ($)$16.77
Leverage Ratio (%)~10.12%
Total Loans ($USD Billions)$3.22B
Allowance for Credit Losses ($USD Millions)$28.33
ACL / Total Loans (%)0.88%
Nonaccrual Loans ($USD Millions)$3.23
Other Borrowings ($USD Millions)$435.0
Total Deposits ($USD Billions)$3.26B
Dividend Declared per Share ($)$0.21

Guidance Changes

MetricPeriodPrevious GuidanceCurrent GuidanceChange
Dividend per share (quarterly)Q4 2024$0.21 (Q3 2024) $0.21 Maintained
Formal quantitative guidance (EPS/Revenue/NIM/OpEx)Q4 2024Not provided Not provided N/A

Management commentary indicates NIM bottomed in Q1 with recovery through most of 2024; Q4’s linked-quarter NIM decline was attributed to lower income on the fair value derivative rather than a shift in core repricing dynamics .

Earnings Call Themes & Trends

Note: No Q4 2024 earnings call transcript was found in the document set; themes below reflect Q2–Q4 press releases.

TopicPrevious Mentions (Q-2: Q2 2024)Previous Mentions (Q-1: Q3 2024)Current Period (Q4 2024)Trend
Net Interest Margin trajectoryNIM “at the bottom”; +1 bp QoQ to 1.80% +9 bps QoQ to 1.89% on lower-cost wholesale repricing and asset yield lift -6 bps QoQ to 1.83% due to lower fair value derivative income Stabilizing with temporary setback
Expense management/branch optimizationNoninterest expense -$1.0M YoY; occupancy/telecom down Adjusted noninterest expense -$1.2M; occupancy/telecom down Salaries/benefits +$856K QoQ; branch consolidation +$840K QoQ Pressure in Q4 given one-time actions
Credit qualityNonaccruals $2.37M; ACL 0.88% Nonaccruals $2.90M; ACL 0.88% Nonaccruals $3.23M; ACL 0.88%; provision reversal $381K Slight deterioration but stable coverage
Liquidity & funding~$1.4B liquidity; borrowings down ~$915.7M liquidity; uninsured deposits 45.9% $868.5M liquidity; uninsured deposits 45.8% Liquidity lower vs Q3; uninsured stable
TaxesETR 3.9% (higher tax-advantaged mix) ETR -0.3% (REIT mix) ETR -1.9% (REIT-driven) Lower effective tax rate sustained
Strategic/M&A——Emphasis on pending CNOB merger positioning New strategic catalyst

Management Commentary

  • “Our net interest margin bottomed out during the first quarter of 2024 and began its recovery during the remainder of the year… Noninterest expense was well controlled… Finally, asset quality remains strong. We look forward to the changes to come in 2025… pending merger with ConnectOne Bancorp, Inc.” — Chris Becker, President & CEO .
  • “Net income for the fourth quarter of 2024 decreased… attributable to an increase in salaries and employee benefits… branch consolidation expenses… partially offset by a provision reversal… and increases in swap fees and BOLI benefits.” — Company release .
  • “At year-end, the Bank had $583.0M in collateralized borrowing lines… $20.0M unsecured line… $265.5M unencumbered cash/securities; total liquidity $868.5M. Uninsured deposits were 45.8%.” — Company release .

Q&A Highlights

No Q4 2024 earnings call transcript was available in the document set; no Q&A items to report [ListDocuments returned none for earnings-call-transcript].

Estimates Context

  • S&P Global Wall Street consensus estimates were unavailable for FLIC due to missing CIQ mapping in our SPGI data, so we cannot provide EPS/Revenue beat/miss comparisons for Q4 2024 at this time (Values retrieved from S&P Global were unavailable).
  • Given the absence of consensus, focus shifts to internal drivers: NII decline, expense upticks, and temporary NIM headwind from fair value derivative income .

Key Takeaways for Investors

  • Q4 EPS compression was driven by higher salaries/benefits and branch consolidation costs, with NII and NIM softness; near-term EPS recovery likely hinges on expense normalization and margin stabilization as derivative impacts fade .
  • Noninterest income growth (merchant services, swap fees, BOLI) is a bright spot that partially offsets NII pressure and could continue post-merger with expanded offerings .
  • Capital and liquidity remain strong (10.12% leverage, $868.5M liquidity), and uninsured deposits are stable at 45.8%, supporting resilience in a transitioning rate environment .
  • Credit quality remains solid with ACL at 0.88% of loans and a Q4 provision reversal; watch nonaccruals creeping from $2.37M (Q2) to $3.23M (Q4) for early stress signals .
  • Dividend was maintained at $0.21/share, signaling confidence in capital position; sustained payouts depend on integration progress and earnings trajectory .
  • The pending CNOB merger is the key stock narrative: integration, cost synergies, funding mix optimization, and potential fee growth are medium-term thesis drivers; monitor regulatory timelines and closing milestones .
  • Tactical setup: with NIM dipping on derivative income and one-time costs in Q4, look for sequential improvement from lower merger/branch expenses and core margin stabilization as wholesale repricing continues .