First of Long Island Corp. Reports Unaudited Consolidated Earnings Results for the Fourth Quarter and Year Ended December 31, 2012
January 30, 2013 at 10:02 am EST
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First of Long Island Corp. reported unaudited consolidated earnings results for the fourth quarter and year ended December 31, 2012. For the quarter, the company reported net income of $5,051,000 or $0.56 diluted earnings per share against net income of $4,728,000 or $0.53 diluted earnings per share a year ago. Income before income taxes was $6,302,000 and net interest income was $14,926,000 against income before income taxes of $5,754,000 and net interest income of $15,069,000 a year ago. Return on assets was 0.97% and return on equity was 9.72% against return on assets of 0.95% and return on equity of 10.04% a year ago. The increase in net income for the fourth quarter of 2012 versus the same quarter last year is primarily attributable to a decrease in the provision for loan losses of $699,000 and an increase in noninterest income of $71,000, or 4.5%, as partially offset by a decrease in net interest income of $143,000, or 0.9%, and an increase in noninterest expense of $79,000, or 0.8%. The net positive earnings impact of these items was partially offset by a related increase in income tax expense of $225,000. The decline in net interest income occurred because the negative impact of a 20 basis point decline in net interest margin for the quarter more than offset the positive impact of quarterly growth in average interest-earnings assets of 4.7%.
For the year, the company reported net income of $20,393,000 or $2.27 diluted earnings per share against net income of $19,457,000 or $2.20 diluted earnings per share a year ago. Income before income taxes was $25,410,000 and net interest income was $60,102,000 against income before income taxes of $24,401,000 and net interest income of $58,745,000 a year ago. Return on assets was 0.99% and return on equity was 10.19% against return on assets of 1.05% and return on equity of 11.15% a year ago. The increase in net income for 2012 is primarily attributable to an increase in net interest income of $1.4 million, or 2.3%, a decrease in the provision for loan losses of $433,000, and an increase in noninterest income, excluding securities gains, of $287,000, or 4.6%. Partially offsetting the positive earnings impact of these items was a net loss of $338,000 on a deleveraging transaction executed in the second quarter of this year, an increase in noninterest expense, before debt extinguishment costs, of $731,000, or 2.0%, and an increase in income tax expense of $73,000. The increase in net interest income resulted from an increase in average interest-earning assets of $204.8 million, or 11.4%, as partially offset by a 29 basis point decline in net interest margin.
The First of Long Island Corporation is a one bank holding company. It provides financial services through its wholly owned subsidiary, The First National Bank of Long Island (the Bank). The Bank serves the financial needs of small to middle market businesses, professional service firms, not-for-profits, municipalities and consumers primarily in Nassau and Suffolk Counties of Long Island, and the boroughs of New York City (NYC). The Bankâs loan portfolio is primarily comprised of loans to borrowers on Long Island and in the boroughs of NYC, and its real estate loans are principally secured by properties located in those areas. The Bankâs investment securities portfolio consists of direct obligations of the United States government and its agencies, obligations of the small business administration (SBA), corporate bonds of large United States financial institutions and obligations of states and political subdivisions. The Bank offers trust, estate, custody, and investment services.