Breaking Down The First of Long Island Corporation (FLIC) Financial Health: Key Insights for Investors

You're looking at The First of Long Island Corporation (FLIC) financial data to understand what really happened before its merger, and honestly, the Q1 2025 numbers tell a story of a bank navigating a tough rate environment while preparing for a major move. The final standalone quarterly report showed a net income of $3.8 million, translating to earnings per share (EPS) of $0.17, which was a dip from the prior year, but the net interest income still managed a $661,000 increase. Still, the red flag for any seasoned analyst was the spike in past due loans, jumping to $7.5 million from just $270,000 a quarter earlier. That's a defintely a sharp credit quality shift we need to map to the near-term risk. Now that the merger with ConnectOne Bancorp is complete, creating a combined entity with approximately $14 billion in total assets, the focus shifts from FLIC's standalone struggles to the opportunities and integration risks of this much larger, new banking force.

Revenue Analysis

You need to know where The First of Long Island Corporation (FLIC)'s money is coming from, especially with the pending merger. The direct takeaway is that while the trailing twelve months (TTM) revenue declined, the core business-Net Interest Income (NII)-showed a positive, albeit managed, upswing in the first quarter of 2025.

For the quarter ending March 31, 2025, The First of Long Island Corporation reported total revenue of $21.54 million. Looking at the bigger picture, the TTM revenue as of the same date stood at $85.36 million. That TTM figure represents a year-over-year decline of -5.94%, which tells you the bank has been navigating a tough rate environment, but the Q1 2025 numbers hint at a potential stabilization.

The company, as a community bank, generates its revenue from two main streams: Net Interest Income (NII) and Noninterest Income. Here's the breakdown for Q1 2025:

• Net Interest Income (NII): $18.8 million (approximately 87.3% of total revenue).
• Noninterest Income (Fee-based services, etc.): $2.7 million (approximately 12.5% of total revenue).

NII is defintely the engine here. For more context on the stakeholders driving these decisions, you should check out Exploring The First of Long Island Corporation (FLIC) Investor Profile: Who's Buying and Why?

NII Growth and the Cost of Money

The most important near-term trend is how The First of Long Island Corporation managed its Net Interest Income. NII actually increased by 3.6% in Q1 2025 compared to the same quarter last year. Here's the quick math: this NII growth was not driven by a huge jump in loan income, but by smart liability management.

Specifically, the bank managed to decrease its interest expense by a significant $2.0 million. This decrease more than offset a $1.4 million drop in interest income from assets, which is a common challenge when loan yields lag behind the cost of deposits. That's a classic balance sheet move to protect the net interest margin (NIM).

Noninterest Income and Merger Impact

Noninterest income, which comes from service charges, wealth management, and other fees, remained relatively flat, decreasing slightly by $57,000 year-over-year in Q1 2025. This segment accounts for a smaller but important piece of the revenue pie, providing a buffer against interest rate volatility.

What this revenue estimate hides is the one-time drag from the pending merger with ConnectOne Bancorp, Inc., which is expected to close in Q2 2025. Noninterest expenses jumped, driven partly by $230,000 in merger-related costs and $468,000 for system conversion expenses. These are necessary, non-recurring costs that temporarily weigh on the bottom line, but they signal a major strategic shift to come.

Profitability Metrics

You need to know how efficiently The First of Long Island Corporation (FLIC) is turning its revenue into profit, especially with the pending merger. The short answer is that profitability has been under pressure, and its margins are lagging behind the industry average. We're seeing a clear trend of declining returns, driven by higher interest expenses and operational costs.

Looking at the most recent Trailing Twelve Months (TTM) data ending in May 2025, the bank's core profitability ratios show a significant gap compared to its peers. For a bank, the closest measure to a gross profit margin is the Net Interest Margin (NIM), which was 1.91% in Q1 2025, showing a slight recovery from the 2024 full-year NIM of 1.83%.

Here's the quick math on the core margins, using TTM data as the best proxy for near-term 2025 fiscal year performance:

• The Operating Margin (TTM) stands at 22.96%, well below the industry average of 44.38%.
• The Net Profit Margin (TTM) is only 19.21%, which is significantly lower than the industry average of 34.5%.
• Net Income for the first quarter of 2025 was $3.8 million (or $0.17 per share), a decrease from the $4.4 million reported in Q1 2024.

This tells you the bank is keeping less than 20 cents of every dollar of revenue as net profit, which is defintely a headwind.

Trends in Profitability and Operational Efficiency

The trend over the last few years is one of contraction. Net income for the full year 2024 was $17.1 million (or $0.75 per share), a sharp drop from $26.2 million (or $1.16 per share) in 2023. This 34.9% decline was primarily driven by a 15.7% decline in net interest income due to an increase in interest expense that outpaced the increase in interest income.

Operational efficiency is also a major concern. The Efficiency Ratio-which measures non-interest expense as a percentage of revenue, where a lower number is better-has worsened significantly. This ratio climbed to 79.00% for the full year 2024, a notable weakening from 65.52% in 2023. What this estimate hides is the Q4 2024 spike to 86.78%, which shows costs are rising faster than revenue. This weakening is partly due to merger-related expenses, which is a one-time thing, but still, it impacts the bottom line right now.

The Return on Equity (ROE) and Return on Assets (ROA) also reflect this pressure. In 2024, ROE fell to 4.49% from 7.05% in 2023, and ROA decreased to 0.40% from 0.62%. The Q1 2025 metrics are similarly low, with an ROE of 3.98% and an ROA of 0.37%.

The key takeaway is that the core business is struggling with expense management and interest rate headwinds, which is why the merger with ConnectOne Bancorp is so important for future efficiency gains. If you want to dive deeper into the shareholder base during this period of transition, you should check out Exploring The First of Long Island Corporation (FLIC) Investor Profile: Who's Buying and Why?

Debt vs. Equity Structure

You're looking at The First of Long Island Corporation (FLIC) capital structure to gauge its risk, and the headline is that its leverage was elevated relative to peers right before the merger. The company's Debt-to-Equity (D/E) ratio stood at approximately 1.00 as of May 2025, which is notably higher than the regional bank industry average of around 0.5. This signals that for every dollar of shareholder equity, the bank utilized one dollar in debt-like financing (excluding core customer deposits).

For a bank, the debt-to-equity calculation is tricky because customer deposits are a liability, but not traditional debt. Here's the quick math on the core capital structure as of September 2025: Total Assets were about $4.069 billion, supported by Total Equity of roughly $407 million. The higher D/E ratio reflected a more aggressive use of wholesale funding-borrowings beyond customer deposits-to fuel asset growth, a common strategy that carries higher interest rate risk.

The near-term focus on debt management was clear in the first quarter of 2025. The First of Long Island Corporation reduced its 'other borrowings' by a significant $75.0 million between year-end 2024 and March 31, 2025, which helped clean up the balance sheet ahead of the merger. Still, the bank maintained substantial funding flexibility, with total available liquidity at $878.1 million as of March 31, 2025. This liquidity was primarily backed by:

• Collateralized borrowing lines (Federal Home Loan Bank/Federal Reserve): $653.3 million
• Unsecured line of credit: $20.0 million

The balance between debt and equity funding was ultimately settled by a strategic equity event: the merger with ConnectOne Bancorp, Inc., which was expected to close around June 1, 2025. This move provided a definitive, equity-based exit for shareholders, immediately solving any long-term capital concerns by folding FLIC's assets and liabilities into a larger, combined entity with approximately $14 billion in total assets. It was a strategic pivot that used a stock-for-stock transaction to maximize shareholder value and secure a more defintely stable future, rather than relying on new debt issuances or a large equity raise.

To be fair, the pre-merger capital position was strong by regulatory standards, with a leverage ratio of approximately 10.29% as of March 31, 2025. But the merger was the ultimate capital strategy. For more on the players involved in this transition, you should check out Exploring The First of Long Island Corporation (FLIC) Investor Profile: Who's Buying and Why?

Here is a snapshot of the core financial health metrics leading into the merger:

Liquidity and Solvency

You need to know if The First of Long Island Corporation (FLIC) can meet its near-term obligations, and the 2025 data shows a tight, but manageable, liquidity position, heavily influenced by the pending merger with ConnectOne Bancorp.

The core liquidity metrics, the Current Ratio and Quick Ratio, both stood at approximately 0.98 for the 2025 fiscal year data. This means that for every dollar of short-term liabilities, the company held just 98 cents in current assets. For a typical manufacturing firm, this sub-1.0 ratio would be a red flag, signaling negative working capital (Current Assets less Current Liabilities). For a bank, however, the interpretation is different; the focus shifts to the stability of the deposit base and total available liquidity.

Here's the quick math on their short-term position:

• Current Ratio: 0.98 (Current Assets / Current Liabilities).
• Quick Ratio: 0.98 (Excluding assets like inventory, which a bank has little of).
• Working Capital Trend: Implies slightly negative working capital, but the real strength is the available credit.

The true measure of The First of Long Island Corporation's liquidity strength lies in its ability to access funds beyond its balance sheet. As of March 31, 2025, the bank reported total available liquidity of $878.1 million. This substantial figure includes collateralized borrowing lines with the Federal Home Loan Bank of New York and the Federal Reserve Bank, plus a significant amount of unencumbered securities. This is a defintely strong liquidity cushion that mitigates the risk of the sub-1.0 current ratio.

Cash Flow Statements Overview (Operating, Investing, and Financing)

A look at the Trailing Twelve Months (TTM) cash flow ending March 31, 2025, reveals a clear strategy of asset deployment and capital management in the lead-up to the merger, which was completed in June 2025.

The massive net cash inflow of $146.25 million from investing activities for the TTM period ending March 31, 2025, is the most important signal. This is not a normal operating environment; it shows the company was actively selling investments and reducing its loan book (Net Decrease in Loans Originated/Sold was $72.17 million) to build a cash war chest for the transition.

Financing activities, which track cash flow between the company and its owners/creditors, show a planned reduction in liabilities. Specifically, total average deposits declined by $51.9 million in Q1 2025 compared to Q1 2024, and other borrowings were reduced by $75.0 million from year-end 2024. These are cash uses that decrease the bank's total size but strengthen its capital structure. The company also continued to pay a quarterly cash dividend of $0.21 per share.

The merger context is everything here. The First of Long Island Corporation was not operating for long-term growth in 2025, but for a clean, strong exit, which you can see in the deliberate deleveraging and high available liquidity. You can read more about the strategic direction in the Mission Statement, Vision, & Core Values of The First of Long Island Corporation (FLIC).

Valuation Analysis

You need to know if The First of Long Island Corporation (FLIC) was a good buy, but the first thing to understand is that a traditional standalone valuation is now moot: the company merged with ConnectOne Bancorp, Inc. (CNOB) and was delisted on June 2, 2025. The final valuation is locked into the merger terms, not future standalone performance. The last trade price on May 30, 2025, was $11.87 per share. This was a clear discount to the merger's approximate value of $12.40 per share, based on the September 2024 announcement.

Was FLIC Overvalued or Undervalued Pre-Merger?

For a regional bank like FLIC, we focus less on Enterprise Value-to-EBITDA (EV/EBITDA), which is better suited for capital-intensive, non-financial companies. Instead, the Price-to-Earnings (P/E) and Price-to-Book (P/B) ratios are the real drivers. Honestly, the pre-merger data strongly suggested The First of Long Island Corporation was undervalued, especially on a book value basis.

Here's the quick math on the key metrics, using the latest available figures before the June 2025 delisting:

• Price-to-Earnings (P/E): The trailing twelve-month (TTM) P/E ratio was approximately 16.41x. This is a fair, if slightly elevated, multiple for a regional bank with the sector's recent headwinds.
• Price-to-Book (P/B): This is the critical number. The P/B ratio was a low 0.70x as of May 2025. This means the market was pricing the stock at only 70% of its tangible book value (shareholders' equity), a classic signal of undervaluation in the banking sector. You were buying a dollar of assets for 70 cents.
• Analyst Consensus: Before the merger closed, the consensus rating was a Buy, with a price target of $16.56 per share, last updated in April 2025. The market price of $11.87 was defintely trading well below that target.

Stock Trend and Dividend Reality

The stock's performance leading up to the merger was weak, which is what created the buying opportunity for ConnectOne Bancorp. Over the 12 months prior to April 2025, the stock price fell by 14.67%. But still, the dividend was a major draw for income investors. The company paid an annual dividend of $0.84 per share, which translated to a significant dividend yield of about 7.08%.

What this estimate hides, however, is the sustainability of that dividend. The payout ratio, based on earnings, was an unsustainable 116.66%. This means the company was paying out more in dividends than it was earning, a common red flag that often forces a dividend cut or, in this case, a merger to stabilize the business. The merger offered a clean exit for that risk.

For a deeper dive into the bank's operational health that led to this valuation, you can read our full analysis here: Breaking Down The First of Long Island Corporation (FLIC) Financial Health: Key Insights for Investors.

Next Action: Research the post-merger performance of ConnectOne Bancorp, Inc. (CNOB) to determine the long-term return for former FLIC shareholders.

Risk Factors

You're looking for a clear-eyed view of The First of Long Island Corporation (FLIC)'s risk profile, and the most critical factor right now isn't just market volatility-it's the strategic pivot inherent in their pending merger. The immediate risks are a mix of execution challenges from the ConnectOne Bancorp, Inc. deal and persistent financial pressures common to regional banks in this rate environment.

The core takeaway is this: the merger is the biggest opportunity and the biggest risk. If it closes as planned around June 1, 2025, the combined entity will have approximately $14 billion in total assets, which fundamentally changes the risk landscape for the better by increasing scale and market reach. But until then, uncertainty is the enemy.

Strategic and Operational Risks: The Merger Factor

The strategic risk is simple: the merger with ConnectOne Bancorp, Inc. could fail. While the Federal Deposit Insurance Corporation (FDIC) approved the deal, it still requires approvals from the New Jersey Department of Banking and Insurance and the Federal Reserve Bank of New York. A failure to close, or any significant delay, would create a major market disruption and likely a negative perception among investors and employees.

Even if the merger is successful, the integration process itself is a massive operational risk. Combining two distinct banking cultures, IT systems, and client bases is defintely complex, and any misstep could lead to client attrition or higher-than-expected integration costs. The forward-looking statements in the filings are clear on this uncertainty.

• Failure to secure remaining regulatory approvals.
• Adverse employee or client reaction to the transaction.
• Disruptions from combining core operating systems.

Financial and Market Risks

The financial reports for the first quarter of 2025 (Q1 2025) already show the pressure points. Net Income decreased to $3.8 million, down from $4.4 million in the comparable 2024 quarter, which pushed diluted earnings per share (EPS) down to $0.17. This decline was driven by two key internal risks:

• Higher Noninterest Expenses: Costs associated with running the business and, specifically, merger-related expenses, are increasing.
• Increased Credit Loss Provision: The Provision for Credit Losses was $168,000 in Q1 2025, compared to zero in the prior year, reflecting a necessary response to changes in economic conditions and loan balances.

The bank is also exposed to interest rate risk, a major external factor. While the Net Interest Margin (NIM) improved to 1.91% in Q1 2025, a significant portion of the loan portfolio-approximately 22.9%-is scheduled to reprice by March 31, 2026. If the Federal Reserve's rate path changes unexpectedly, this repricing schedule could either boost or hurt future net interest income. Also, the bank holds an accumulated other comprehensive loss, largely due to a net unrealized loss in its available-for-sale securities portfolio, a direct consequence of higher market interest rates.

External and Geographic Concentration Risks

The First of Long Island Corporation's core business is concentrated in Nassau and Suffolk Counties and the New York City boroughs of Queens, Brooklyn, and Manhattan. That means the health of their loan book-especially the $1.9 billion in commercial mortgages-is tied directly to the regional economy. A downturn in the Long Island commercial real estate market would immediately translate into higher credit losses. It's a classic concentration risk. You can read more about what drives their local focus in their Mission Statement, Vision, & Core Values of The First of Long Island Corporation (FLIC).

Mitigation Strategies in Action

Management's primary mitigation is the merger itself, aiming to diversify and strengthen the balance sheet. Beyond that, the bank maintains a strong capital position, with a leverage ratio of 10.29% in Q1 2025, which provides a significant buffer against credit and operational shocks. They are also actively controlling noninterest expenses, which were up only 1.6% in 2024 when excluding merger and branch consolidation costs.

Here's the quick math on the Q1 2025 financial risk markers:

Your next step should be to track the merger approval announcements from the New Jersey and Federal Reserve regulators. That's the single most important near-term data point.

Growth Opportunities

You are looking at The First of Long Island Corporation (FLIC) right now, but the real story is its integration into ConnectOne Bancorp, Inc. (CNOB). The merger, completed on June 1, 2025, is the single most important growth driver, fundamentally changing the company's scale and earnings profile. This isn't just a simple consolidation; it's a strategic leap that immediately creates a premier middle-market bank in the greater New York metro area.

Future Revenue Growth Projections and Earnings Estimates

The financial lift from this transaction is already clear in the 2025 results. Post-merger, the combined entity reported a Q3 2025 diluted Earnings Per Share (EPS) of $0.78, a substantial jump from $0.41 in the same quarter last year. The revenue surge is equally compelling: ConnectOne Bancorp's Q3 2025 revenue saw an 85% year-over-year increase, directly reflecting the successful addition of FLIC's assets. The merger is projected to be approximately 36% accretive to ConnectOne's EPS in 2025, assuming the full phase-in of cost savings. That's a defintely material boost to shareholder value.

Here's the quick math on the scale change:

• Total Assets: $14 billion
• Total Deposits: $11 billion
• Total Loans: $11 billion

For the longer term, the combined company's narrative projects significant growth, targeting $868.6 million in revenue and $469.2 million in earnings by 2028. This outlook is based on realizing merger synergies and capitalizing on the expanded footprint.

Analysis of Key Growth Drivers and Strategic Initiatives

The core growth drivers are market expansion and operational efficiency (cost synergies), which are now fully in motion following the June 2025 close. The combined bank now has an expanded network of over 60 branches across New York, New Jersey, and Southeast Florida. This dramatically enhances their ability to serve the middle-market client base across a wider, more affluent geographic area. The strategic rationale is simple: bigger scale means better efficiency and a stronger competitive position.

Key strategic drivers for the combined entity include:

• Market Expansion: Solidifying a Long Island presence, with 30% of the pro forma deposit franchise now located in Nassau and Suffolk Counties.
• Operational Efficiency: Targeting an improved efficiency ratio of approximately 45% in 2025, adjusted for full cost savings.
• Funding Profile Improvement: FLIC's deposit base helped improve the overall deposit mix, with noninterest-bearing deposits rising to 21% of total deposits, which lowers the cost of funding for the combined bank.

Competitive Advantages

The new competitive advantage is a combination of scale and a superior funding profile. The merger pushes the combined entity past the $10 billion asset threshold, moving it from a community bank to a small regional player. This larger size provides better access to capital and allows for investments in technology that smaller banks can't afford. Plus, FLIC brought a better-than-average funding profile-a strong deposit base-which is a critical advantage in a high-rate environment. The resulting Net Interest Margin (NIM) for the combined entity expanded to 3.11% in Q3 2025. This is a strong sign of pricing power and cost control. If you want to dive deeper into the players involved, you can check out Exploring The First of Long Island Corporation (FLIC) Investor Profile: Who's Buying and Why?

What this estimate hides, however, are the one-time integration costs and the fair value marks on FLIC's loan portfolio, which caused a temporary net loss in Q2 2025. Still, the operating results show the underlying business is healthy and the synergies are kicking in.

Next Step: Monitor ConnectOne Bancorp, Inc.'s Q4 2025 earnings release for management commentary on the full realization of the 36% EPS accretion target and any updates to the 2028 revenue projection.