8-K

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

__________________

FORM 8-K

__________________

CURRENT REPORT

PURSUANT TO SECTION 13 OR 15(d) OF THE

SECURITIES EXCHANGE ACT OF 1934

Date of report (Date of earliest event reported): January 25, 2024

__________________

The First of Long Island Corporation

(Exact name of the registrant as specified in its charter)

__________________

New York	001-32964	11-2672906
(State or other jurisdiction of	(Commission File Number)	(IRS Employer
incorporation or organization)		Identification No.)

275 Broadhollow Road
Melville, New York	11747
(Address of principal executive offices)	(Zip Code)

(516) 671-4900

(Registrant’s telephone number)

Not applicable

(Former name or former address, if changed since last report)

__________________

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (See General Instruction A.2. below):

☐	Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
☐	Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
☐	Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
☐	Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Securities registered pursuant to Section 12(b) of the Act:

Title of Each Class	Trading Symbol	Name of Each Exchange on Which Registered
Common stock, $0.10 par value per share	FLIC	Nasdaq

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).

Emerging growth company  ☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.  ☐

Item 2.02 Results of Operations and Financial Condition

On January 25, 2024, The First of Long Island Corporation issued a press release disclosing material non-public information regarding the Corporation's financial condition as of December 31, 2023 and its results of operations for the twelve and three month periods then ended. The press release is furnished as Exhibit 99.1 to this Form 8-K filing. 

Item 9.01 Financial Statements and Exhibits

Exhibit 99.1 - Press release dated January 25, 2024 regarding the Corporation's financial condition as of December 31, 2023 and its results of operations for the twelve and three month periods then ended.  

Exhibit 104 - Cover page interactive data file (embedded within the Inline XBRL document) 

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized. 

The First of Long Island Corporation

(Registrant)

By: /s/ JANET T. VERNEUILLE

Janet T. Verneuille

Senior Executive Vice President,

Chief Financial Officer & Treasurer

(principal financial officer)

Dated: January 30, 2024

EX-99.1

Exhibit 99.1

January 25, 2024	For More Information Contact:
For Immediate Release	Janet Verneuille, SEVP and CFO
	(516) 671-4900, Ext. 7462

THE FIRST OF LONG ISLAND CORPORATION

REPORTS EARNINGS FOR THE YEAR ENDED DECEMBER 31, 2023

Melville, New York, January 25, 2024 (GLOBE NEWSWIRE) – The First of Long Island Corporation (Nasdaq: FLIC, the “Company” or the “Corporation”), the parent of The First National Bank of Long Island (the “Bank”), reported net income and earnings per share for the quarter and year ended December 31, 2023.

Analysis of 2023 Earnings

President and Chief Executive Officer Chris Becker commented on the Company’s financial position: “The leveling of quarterly earnings during the final three quarters of 2023 was encouraging as we believe the decline in the net interest margin is nearing a turning point. We enter 2024 with an enthusiastic focus on our core business of commercial relationship banking.  Our balance sheet is well positioned to take advantage of a more favorable rate environment.”

Net income and earnings per share for 2023 were $26.2 million and $1.16, respectively, compared to $46.9 million and $2.04, respectively, in 2022. The principal drivers of the decreases were declines in net interest income of $28.8 million, or 24.9%, and a loss on sale of securities of $3.5 million. These items were partially offset by a decrease in income tax expense of $8.1 million and a decrease in the provision for credit losses of $2.7 million. The decline in net interest income primarily resulted from the current rate environment’s impact on the Bank’s liability sensitive balance sheet. Reductions in net income negatively impacted key financial ratios for the year as compared to historical results. For the year ended December 31, 2023, the return on average assets was 0.62%, the return on average equity was 7.14%, the net interest margin was 2.16%, and the efficiency ratio was 65.52%.

Over the second half of 2023, the pace of the decline in the net interest margin slowed considerably. After a 57 basis point reduction in the margin during the first two quarters of 2023, over the final two quarters of 2023 the margin decreased 17 basis points. The slowing downward trend in the net interest margin largely resulted from a large portion of the wholesale funding and time deposits repricing to market rates by mid-2023 and the completion of two balance sheet repositioning transactions in the first quarter of 2023 that helped reduce the Bank’s liability sensitive position. Additionally, as the federal funds rate held steady in the second half of the year, the demand for higher rates from depositors slowed. 

For the year ended December 31, 2023, net interest income declined due to an increase in interest expense of $50.1 million that was only partially offset by a $21.3 million increase in interest income. Year over year, the cost of interest-bearing liabilities increased 186 basis points while the yield on interest-earning assets increased 48 basis points. Also contributing to the decline in net interest income was a shift in the mix of funding as average noninterest-bearing deposits decreased $217.9 million while average interest-bearing liabilities increased $221.6 million as depositors took advantage of interest rates not seen in over a decade.

Noninterest income declined $2.8 million year over year excluding the net gains and losses on sales of securities and the disposition of premises and fixed assets.  The primary factor reducing noninterest income for the current year was a $2.3 million decline in the net pension credit, excluding service costs.  The remaining difference was related to a payment received in 2022 for the conversion of the Bank’s retail broker and advisory accounts to LPL.

Noninterest expense declined $3.0 million, or 4.4%, for the year ended December 31, 2023, as compared to the prior year. Reductions in salaries and employee benefits of $3.7 million primarily drove the decline as short-term incentive and stock-based compensation costs were substantially lower than 2022 based on the Company falling short of established performance metrics for 2023.  The primary offset to the lower salaries and employee benefits was a $782,000 increase in FDIC insurance expense due to higher assessment rates.

1

The Bank recorded a credit loan loss provision of $326,000 during 2023. Changes in the loan loss reserve were driven largely by adjustments for economic conditions offset by net chargeoffs of $2.1 million, or 6 basis points of average loans. The reserve coverage ratio at year end 2023 was 0.89% of total loans as compared to 0.95% of total loans at December 31, 2022. Past due loans and nonaccrual loans were modest at $3.1 million and $1.1 million, respectively, at December 31, 2023. During the fourth quarter of 2023, the Bank partially charged off a previously identified substandard commercial and industrial loan relationship in the amount of $1.4 million. The remaining outstanding balance of $632,000 is fully reserved and represents the majority of outstanding nonaccrual loans. Overall credit quality in the loan and investment portfolios remains strong.

Income tax expense decreased $8.1 million, and the effective tax rate declined from 19.4% in 2022 to 11.0% in 2023. The decline in the effective tax rate is mainly due to an increase in the percentage of pre-tax income derived from the Bank’s real estate investment trust and bank-owned life insurance. The decrease in income tax expense reflects the lower effective tax rate and a decline in pre-tax income.            

Analysis of Earnings – Fourth Quarter 2023 Versus Fourth Quarter 2022

Net income for the fourth quarter of 2023 decreased $3.8 million as compared to the fourth quarter of 2022. The decrease is mainly attributable to a $7.8 million decline in net interest income and an increase in the provision for credit losses of $818,000, partially offset by declines in salaries and employee benefits of $2.7 million and income tax expense of $1.7 million for substantially the same reasons discussed above with respect to the year over year changes.

Analysis of Earnings – Fourth Quarter Versus Third Quarter 2023

Net income for the fourth quarter of 2023 declined $741,000 compared to the third quarter. The decrease was mainly due to a decrease in net interest income of $1.5 million, primarily due to higher cost of funds on total interest-bearing liabilities, and an increase in the provision for credit losses of $1.1 million. These negative impacts on quarterly earnings were partially offset by lower salaries and employee benefits and lower income tax expense for substantially the same reasons already discussed above.

Liquidity

Total average deposits declined by $104.7 million, or 3.0%, comparing 2023 to 2022, reflecting current trends in the industry. Competition for funding remained fierce throughout 2023 with demand for higher deposit rates from both consumer and commercial depositors as well as increased pressure from the local government investment pool alternatives that can offer higher yields to local municipalities. At December 31, 2023, short term borrowings were up $70 million from the prior year end. Long-term borrowings increased $61.5 million to $472.5 million year over year.

The Bank had $1.1 billion in collateralized borrowing lines with the Federal Home Loan Bank of New York and the Federal Reserve Bank, as well as a $20 million unsecured line of credit with a correspondent bank. We also had $386 million in unencumbered cash and securities. In total, we had approximately $1.5 billion of available liquidity, compared to an aggregate of uninsured and uncollateralized deposits of approximately $1.3 billion. Uninsured and uncollateralized deposits represented 38% of our total deposits at December 31, 2023.

Capital

The Corporation’s capital position remains strong with a Leverage Ratio of approximately 10.1% at December 31, 2023.  Book value per share was $16.83 at December 31, 2023 versus $16.24 at December 31, 2022. The accumulated other comprehensive loss component of stockholders’ equity is mainly comprised of a net unrealized loss in the available-for-sale securities portfolio due to higher market interest rates. We did not repurchase any shares in 2023 and the Bank declared its quarterly cash dividend of $0.21 per share each quarter throughout 2023. The Board and management continue to evaluate both capital management tools to provide the best opportunity to maximize shareholder value.

Looking Forward to 2024

Management is encouraged by recent declines in inflation figures that may lead to reductions in short-term rates in 2024. Our liability-sensitive balance sheet should perform well in a falling rate environment. Current expectations are for our net interest margin to remain under pressure during the first half of 2024 before improving in the second half of the year based on falling rate assumptions and an improving yield curve.

2

Management continues to pursue ways to reduce noninterest expense as a tactic to offset the impact of the decline in net interest income, yet remains cognizant of preventing short term expense reductions that could have longer term negative impacts on shareholder value. We are investing in upgrades to the Bank’s core system, business online banking, branch systems and other ancillary systems that will be completed in the first quarter of 2024. Both customer facing technology and back-office operations will see benefits. We anticipate a lower run rate of noninterest expenses in 2024 including the cost associated with making these technology upgrades.

We believe the stress on deposits is beginning to ease and the anticipated lower market rates will improve loan activity. We are optimistic about returning to growth in deposits and loans in 2024. With our capital levels strong and our bankers eager to service customers, we are prepared for increases in demand.

Forward Looking Information

This earnings release contains various “forward-looking statements” within the meaning of that term as set forth in Rule 175 of the Securities Act of 1933 and Rule 3b-6 of the Securities Exchange Act of 1934. Such statements are generally contained in sentences including the words “may” or “expect” or “could” or “should” or “would” or “believe” or “anticipate”. The Corporation cautions that these forward-looking statements are subject to numerous assumptions, risks and uncertainties that could cause actual results to differ materially from those contemplated by the forward-looking statements. Factors that could cause future results to vary from current management expectations include, but are not limited to, changing economic conditions; legislative and regulatory changes; monetary and fiscal policies of the federal government; changes in interest rates; deposit flows and the cost of funds; demand for loan products; competition; changes in management’s business strategies; changes in accounting principles, policies or guidelines; changes in real estate values; and other factors discussed in the “risk factors” section of the Corporation’s filings with the Securities and Exchange Commission (“SEC”). The forward-looking statements are made as of the date of this press release, and the Corporation assumes no obligation to update the forward-looking statements or to update the reasons why actual results could differ from those projected in the forward-looking statements.

For more detailed financial information please see the Corporation’s annual report on Form 10-K for the year ended December 31, 2023. The Form 10-K will be available through the Bank’s website at www.fnbli.com on or about March 8, 2024, when it is anticipated to be electronically filed with the SEC. Our SEC filings are also available on the SEC’s website at www.sec.gov.

3

CONSOLIDATED BALANCE SHEETS

(Unaudited)

	12/31/2023			12/31/2022
	(dollars in thousands)
Assets:
Cash and cash equivalents	$	60,887		$	74,178
Investment securities available-for-sale, at fair value		695,877			673,413
Loans:
Commercial and industrial		116,163			108,493
Secured by real estate:
Commercial mortgages		1,919,714			1,916,493
Residential mortgages		1,166,887			1,240,144
Home equity lines		44,070			45,213
Consumer and other		1,230			1,390
		3,248,064			3,311,733
Allowance for credit losses		(28,992	)		(31,432	)
		3,219,072			3,280,301
Restricted stock, at cost		32,659			26,363
Bank premises and equipment, net		31,414			31,660
Right-of-use asset - operating leases		22,588			23,952
Bank-owned life insurance		114,045			110,848
Pension plan assets, net		10,740			11,049
Deferred income tax benefit		28,996			31,124
Other assets		19,622			18,623
	$	4,235,900		$	4,281,511
Liabilities:
Deposits:
Checking	$	1,133,184		$	1,324,141
Savings, NOW and money market		1,546,369			1,661,512
Time		591,433			478,981
		3,270,986			3,464,634
Short-term borrowings		70,000			—
Long-term debt		472,500			411,000
Operating lease liability		24,940			25,896
Accrued expenses and other liabilities		17,328			15,445
		3,855,754			3,916,975
Stockholders' Equity:
Common stock, par value $0.10 per share:
Authorized, 80,000,000 shares;
Issued and outstanding, 22,590,942 and 22,443,380 shares		2,259			2,244
Surplus		79,728			78,462
Retained earnings		355,887			348,597
		437,874			429,303
Accumulated other comprehensive loss, net of tax		(57,728	)		(64,767	)
		380,146			364,536
	$	4,235,900		$	4,281,511

4

CONSOLIDATED STATEMENTS OF INCOME

(Unaudited)

	Year Ended						Three Months Ended
	12/31/2023			12/31/2022			12/31/2023			12/31/2022
	(dollars in thousands)
Interest and dividend income:
Loans	$	127,866		$	116,352		$	33,160		$	30,171
Investment securities:
Taxable		22,663			9,795			6,786			3,239
Nontaxable		4,954			8,063			978			2,050
		155,483			134,210			40,924			35,460
Interest expense:
Savings, NOW and money market deposits		32,164			7,180			9,976			3,917
Time deposits		19,267			5,296			6,181			1,822
Short-term borrowings		950			1,207			354			432
Long-term debt		16,237			4,814			4,455			1,534
		68,618			18,497			20,966			7,705
Net interest income		86,865			115,713			19,958			27,755
Provision (credit) for credit losses		(326	)		2,331			901			83
Net interest income after provision (credit) for credit losses		87,191			113,382			19,057			27,672
Noninterest income:
Bank-owned life insurance		3,197			3,017			814			764
Service charges on deposit accounts		3,034			3,157			791			811
Net loss on sales of securities		(3,489	)		—			—			—
Gain (loss) on disposition of premises and fixed assets		240			(553	)		—			(553	)
Other		3,354			6,242			792			1,346
		6,336			11,863			2,397			2,368
Noninterest expense:
Salaries and employee benefits		37,373			41,096			8,105			10,832
Occupancy and equipment		13,140			13,407			3,166			3,705
Other		13,546			12,523			3,536			3,277
		64,059			67,026			14,807			17,814
Income before income taxes		29,468			58,219			6,647			12,226
Income tax expense		3,229			11,287			588			2,322
Net income	$	26,239		$	46,932		$	6,059		$	9,904
Share and Per Share Data:
Weighted Average Common Shares		22,550,562			22,868,658			22,586,296			22,558,414
Dilutive stock options and restricted stock units		82,609			99,895			122,961			129,803
		22,633,171			22,968,553			22,709,257			22,688,217
Basic EPS	$	1.16		$	2.05		$	0.27		$	0.44
Diluted EPS		1.16			2.04			0.27			0.44
Cash Dividends Declared per share		0.84			0.82			0.21			0.21
FINANCIAL RATIOS
(Unaudited)
ROA		0.62	%		1.11	%		0.57	%		0.92	%
ROE		7.14			12.13			6.68			10.74
Net Interest Margin		2.16			2.89			2.00			2.74
Dividend Payout Ratio		72.41			40.20			77.78			47.73
Efficiency Ratio		65.52			51.45			65.47			57.06

5

PROBLEM AND POTENTIAL PROBLEM LOANS AND ASSETS

(Unaudited)

	12/31/2023			12/31/2022
	(dollars in thousands)
Loans including modifications to borrowers experiencing financial difficulty:
Modified and performing according to their modified terms	$	431		$	480
Past due 30 through 89 days		3,086			750
Past due 90 days or more and still accruing		—			—
Nonaccrual		1,053			—
		4,570			1,230
Other real estate owned		—			—
	$	4,570		$	1,230
Allowance for credit losses	$	28,992		$	31,432
Allowance for credit losses as a percentage of total loans		0.89	%		0.95	%
Allowance for credit losses as a multiple of nonaccrual loans		27.5	x		—

6

AVERAGE BALANCE SHEET, INTEREST RATES AND INTEREST DIFFERENTIAL

(Unaudited)

	Year Ended December 31,
	2023								2022
	Average			Interest/		Average			Average			Interest/		Average
(dollars in thousands)	Balance			Dividends		Rate			Balance			Dividends		Rate
Assets:
Interest-earning bank balances	$	48,879		$	2,508		5.13	%	$	35,733		$	674		1.89	%
Investment securities:
Taxable (1)		584,450			20,155		3.45			442,758			9,121		2.06
Nontaxable (1) (2)		196,341			6,271		3.19			318,836			10,206		3.20
Loans (1) (2)		3,260,903			127,868		3.92			3,276,589			116,357		3.55
Total interest-earning assets		4,090,573			156,802		3.83			4,073,916			136,358		3.35
Allowance for credit losses		(30,291	)							(30,604	)
Net interest-earning assets		4,060,282								4,043,312
Cash and due from banks		30,847								33,471
Premises and equipment, net		32,027								37,376
Other assets		112,833								132,893
	$	4,235,989							$	4,247,052
Liabilities and Stockholders' Equity:
Savings, NOW & money market deposits	$	1,657,947			32,164		1.94		$	1,728,897			7,180		0.42
Time deposits		553,096			19,267		3.48			368,922			5,296		1.44
Total interest-bearing deposits		2,211,043			51,431		2.33			2,097,819			12,476		0.59
Short-term borrowings		17,529			950		5.42			57,119			1,207		2.11
Long-term debt		380,399			16,237		4.27			232,465			4,814		2.07
Total interest-bearing liabilities		2,608,971			68,618		2.63			2,387,403			18,497		0.77
Checking deposits		1,220,947								1,438,890
Other liabilities		38,575								33,920
		3,868,493								3,860,213
Stockholders' equity		367,496								386,839
	$	4,235,989							$	4,247,052
Net interest income (2)				$	88,184							$	117,861
Net interest spread (2)							1.20	%							2.58	%
Net interest margin (2)							2.16	%							2.89	%

(1) The average balances of loans include nonaccrual loans. The average balances of investment securities exclude unrealized gains and losses on available-for-sale securities.

(2) Tax-equivalent basis. Interest income on a tax-equivalent basis includes the additional amount of interest income that would have been earned if the Corporation's investment in tax-exempt loans and investment securities had been made in loans and investment securities subject to federal income taxes yielding the same after-tax income. The tax-equivalent amount of $1.00 of nontaxable income was $1.27 for each period presented using the statutory federal income tax rate of 21%.

7

AVERAGE BALANCE SHEET, INTEREST RATES AND INTEREST DIFFERENTIAL

(Unaudited)

	Three Months Ended December 31,
	2023								2022
	Average			Interest/		Average			Average			Interest/		Average
(dollars in thousands)	Balance			Dividends		Rate			Balance			Dividends		Rate
Assets:
Interest-earning bank balances	$	39,134		$	539		5.46	%	$	36,804		$	360		3.88	%
Investment securities:
Taxable (1)		642,590			6,247		3.89			455,468			2,879		2.53
Nontaxable (1) (2)		157,098			1,238		3.15			321,903			2,595		3.22
Loans (1) (2)		3,245,232			33,160		4.09			3,321,303			30,172		3.63
Total interest-earning assets		4,084,054			41,184		4.03			4,135,478			36,006		3.48
Allowance for credit losses		(29,577	)							(31,412	)
Net interest-earning assets		4,054,477								4,104,066
Cash and due from banks		29,175								31,778
Premises and equipment, net		31,792								35,620
Other assets		105,902								111,466
	$	4,221,346							$	4,282,930
Liabilities and Stockholders' Equity:
Savings, NOW & money market deposits	$	1,626,615			9,976		2.43		$	1,734,863			3,917		0.90
Time deposits		602,256			6,181		4.07			438,058			1,822		1.65
Total interest-bearing deposits		2,228,871			16,157		2.88			2,172,921			5,739		1.05
Short-term borrowings		25,055			354		5.61			40,152			432		4.27
Long-term debt		390,326			4,455		4.53			263,849			1,534		2.31
Total interest-bearing liabilities		2,644,252			20,966		3.15			2,476,922			7,705		1.23
Checking deposits		1,176,276								1,400,095
Other liabilities		41,063								40,132
		3,861,591								3,917,149
Stockholders' equity		359,755								365,781
	$	4,221,346							$	4,282,930
Net interest income (2)				$	20,218							$	28,301
Net interest spread (2)							0.88	%							2.25	%
Net interest margin (2)							2.00	%							2.74	%

(1) The average balances of loans include nonaccrual loans. The average balances of investment securities exclude unrealized gains and losses on available-for-sale securities.

(2) Tax-equivalent basis. Interest income on a tax-equivalent basis includes the additional amount of interest income that would have been earned if the Corporation's investment in tax-exempt loans and investment securities had been made in loans and investment securities subject to federal income taxes yielding the same after-tax income. The tax-equivalent amount of $1.00 of nontaxable income was $1.27 for each period presented using the statutory federal income tax rate of 21%.

8

XML

Document And Entity Information	Jan. 25, 2024
Document Information [Line Items]
Entity, Registrant Name	The First of Long Island Corporation
Document, Type	8-K
Document, Period End Date	Jan. 25, 2024
Entity, Incorporation, State or Country Code	NY
Entity, File Number	001-32964
Entity, Tax Identification Number	11-2672906
Entity, Address, Address Line One	275 Broadhollow Road
Entity, Address, City or Town	Melville
Entity, Address, State or Province	NY
Entity, Address, Postal Zip Code	11747
City Area Code	516
Local Phone Number	671-4900
Written Communications	false
Soliciting Material	false
Pre-commencement Tender Offer	false
Pre-commencement Issuer Tender Offer	false
Title of 12(b) Security	Common stock, $0.10 par value per share
Trading Symbol	FLIC
Security Exchange Name	NASDAQ
Entity, Emerging Growth Company	false
Amendment Flag	false
Entity, Central Index Key	0000740663