First of Long Island Corp. :FLIC-US: Earnings Analysis: Q4, 2016 By the Numbers : February 1, 2017

First of Long Island Corp. reports financial results for the quarter ended December 31, 2016.

We analyze the earnings along side the following peers of First of Long Island Corp. – Bridge Bancorp, Inc., Community Bank System, Inc., Financial Institutions, Inc. and NBT Bancorp Inc. (BDGE-US, CBU-US, FISI-US and NBTB-US) that have also reported for this period.

Highlights

  • Summary numbers: Revenues of USD 24.34 million, Net Earnings of USD 7.55 million.
  • Net interest income margins widened from 91.47% to 92.27% compared to the same period last year.
  • Net loan assets changed 13.26% compared to same period last year and 4.11% from previous period, total deposits changed 14.18% compared to same period last year and -0.62% from previous period.
  • Earnings growth from operating margin improvements as well as from one-time items.

The table below shows the preliminary results and recent trends for key metrics such as revenues and net income (See complete table at the end of this report):

2016-12-31 2016-09-30 2016-06-30 2016-03-31 2015-12-31
Relevant Numbers (Quarterly)
Revenues (mil) 24.34 23.71 25 22.46 22.27
Revenue Growth (%YOY) 9.26 14.23 15.88 13.63 17.4
Earnings (mil) 7.55 7.98 7.59 7.4 6.62
Earnings Growth (%YOY) 14.02 22.52 20.89 14.09 21.23
Net Margin (%) 31.01 33.65 30.34 32.95 29.71
EPS 0.31 0.33 0.33 0.35 0.31
Return on Equity (%) 9.8 10.36 10.72 11.58 10.63
Return on Assets (%) 0.87 0.94 0.92 0.93 0.86

Access our Ratings and Scores for First of Long Island Corp.

Market Share Versus Profits

Revenues History
Earnings History

FLIC-US‘s change in revenue this period compared to the same period last year of 9.26% is almost the same as its change in earnings, and is about average among the announced results thus far in its peer group, suggesting that FLIC-US is holding onto its market share. Also, for comparison purposes, revenues changed by 2.66% and earnings by -5.40% compared to the immediate last period.

Revenues Growth Versus Earnings Growth

Quadrant label definitions. Hover to know more

Leader, Earnings Focus, Laggard, Revenues Focus

Earnings Growth Analysis

The company’s earnings growth was influenced by the following factors: (1) Year-on-year improvements in net interest income margins from 91.47% to 92.27% and (2) improvement in loan loss provisions. As a result, net interest income after provisions margins improved from 82.87% to 84.18% compared to the same period last year. Loan loss provisions as a percentage of net interest income were 8.77% this period and 9.40% a year ago.

Net Interest Income Margin Versus Loan Loss Provisions Margin

Quadrant label definitions. Hover to know more

High Risk; High Reward Loans, Risky Loan Portfolio, Conservative Loan Portfolio, Safer Loan Portfolio
Net Interest Income Margin History
Loan Loss Provisions Margin History

Net Loans and Total Deposits

A financial institution’s core operations represented by Net Interest Income and Net Interest Income after Provisions are dependent on both the growth and quality of its deposits as well as the growth and quality of its loans. A firm could boost its interest income in the short-term by just increasing its loan assets with less concern about their quality – but this would eventually lead to greater loan loss provisions. Similarly a drive to increase deposits could result in higher interest expenses and eventually effect the firm’s equity. It is thus important to understand net interest income performance in context to loan loss provisions, loan assets and deposits.

Loan Assets Growth Rate History (Qtr YOY)
Total Deposits Growth Rate History (Qtr YOY)

FLIC-US‘s improvement in net interest income margins came in spite of relative drops in the levels of net loan assets and total deposits. On an absolute basis, net loan assets changed 13.26% compared to the same period last year and 4.11% from the previous period. Total deposits changed 14.18% compared to the same period last year and -0.62% from the previous period.

Margins

The company’s earnings growth has also been influenced by the following factors: (1) Improvements in operating margins from 36.99% to 39.25% and (2) one-time items. The company’s pretax margins are now 39.25%, compared to 36.99% for the same period last year.

EBIT Margin History
PreTax Margin History
EBIT Margin Versus PreTax Margin

Quadrant label definitions. Hover to know more

Operation driven Earnings, One-time Favorables, Low Earnings Base, One-time Unfavorables

Access our Ratings and Scores for First of Long Island Corp.

Company Profile

First of Long Island Corp. provides financial services through its wholly owned subsidiary, The First National Bank of Long Island. It offers various financial services includes personal banking, business banking and lending services to individual, professional, corporate, institutional, and government customers. The company was founded on February 7, 1984 and is headquartered in Glen Head, NY.

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