The First of Long Island Corporation Reports $17.1 Million Net Income, Announces Merger with ConnectOne Bancorp

The First of Long Island Corporation reported a net income of $17.1 million for the fiscal year ending December 31, 2024, translating to diluted earnings per share of $0.75. This represents a significant decline from the previous year's net income of $26.2 million and diluted earnings per share of $1.16. The decrease in profitability was primarily driven by a $13.6 million drop in net interest income, which fell to $73.2 million, alongside a provision for credit losses of $359,000 compared to a reversal of $326,000 in 2023. The corporation's return on average assets (ROA) and return on average equity (ROE) also decreased to 0.40% and 4.49%, respectively, from 0.62% and 7.14% in the prior year.

In terms of operational changes, the corporation announced a merger agreement with ConnectOne Bancorp, Inc. on September 4, 2024. The all-stock transaction, which is expected to close in the second quarter of 2025, will see shareholders of The First of Long Island Corporation receive 0.5175 shares of ConnectOne common stock for each share they hold. The merger is subject to regulatory approvals and customary closing conditions. Additionally, the corporation's employee headcount decreased by 8% to approximately 265 full-time equivalent employees, attributed to branch consolidations and retirements.

The bank's total assets decreased by 2.8% to $4.1 billion, primarily due to a $71.1 million reduction in investment securities and a $26.5 million decline in loans. Total deposits remained relatively stable at $3.3 billion, with a slight increase in savings and time deposits offset by a decrease in noninterest-bearing checking deposits. The allowance for credit losses stood at $28.3 million, or 0.88% of total loans, reflecting stable credit quality despite a slight increase in nonaccrual loans to $3.2 million.

Looking ahead, the corporation's management expressed cautious optimism regarding the merger with ConnectOne, which is anticipated to enhance the combined entity's market position and operational efficiencies. However, they acknowledged potential risks associated with the merger, including regulatory approval delays and market conditions that could impact the transaction's completion. The corporation's financial outlook remains influenced by broader economic factors, including interest rate fluctuations and local market conditions, particularly in the New York metropolitan area where the bank primarily operates.