Company Quick10K Filing
Quick10K
First of Long Island
Closing Price ($) Shares Out (MM) Market Cap ($MM)
$22.43 25 $559
10-Q 2019-03-31 Quarter: 2019-03-31
10-K 2018-12-31 Annual: 2018-12-31
10-Q 2018-09-30 Quarter: 2018-09-30
10-Q 2018-06-30 Quarter: 2018-06-30
10-Q 2018-03-31 Quarter: 2018-03-31
10-K 2017-12-31 Annual: 2017-12-31
10-Q 2017-09-30 Quarter: 2017-09-30
10-Q 2017-06-30 Quarter: 2017-06-30
10-Q 2017-03-31 Quarter: 2017-03-31
10-K 2016-12-31 Annual: 2016-12-31
10-Q 2016-09-30 Quarter: 2016-09-30
10-Q 2016-06-30 Quarter: 2016-06-30
10-Q 2016-03-31 Quarter: 2016-03-31
10-K 2015-12-31 Annual: 2015-12-31
10-Q 2015-09-30 Quarter: 2015-09-30
10-Q 2015-06-30 Quarter: 2015-06-30
10-Q 2015-03-31 Quarter: 2015-03-31
10-K 2014-12-31 Annual: 2014-12-31
10-Q 2014-09-30 Quarter: 2014-09-30
10-Q 2014-06-30 Quarter: 2014-06-30
10-Q 2014-03-31 Quarter: 2014-03-31
10-K 2013-12-31 Annual: 2013-12-31
8-K 2019-05-20
8-K 2019-05-03 Earnings, Exhibits
8-K 2019-04-16 Shareholder Vote, Other Events, Exhibits
8-K 2019-03-19 Officers, Exhibits
8-K 2019-01-30 Earnings, Exhibits
8-K 2019-01-02
8-K 2018-12-20 Officers, Exhibits
8-K 2018-10-30 Earnings, Exhibits
8-K 2018-10-30 Other Events, Exhibits
8-K 2018-07-30 Earnings, Exhibits
8-K 2018-07-02 Officers
8-K 2018-04-30 Earnings, Exhibits
8-K 2018-04-17 Shareholder Vote
8-K 2018-01-30 Earnings, Exhibits
GD General Dynamics 49,700
AAL American Airlines Group 15,100
CRUS Cirrus Logic 2,880
HLNE Hamilton Lane 2,570
FMBH First Mid Illinois Bancshares 586
TEUM Pareteum 492
CBB Cincinnati Bell 392
TCFC Community Financial 169
FEIM Frequency Electronics 104
PTEO Proteo 0
FLIC 2019-03-31
Part 1. Financial Information
Item 2. Management’S Discussion and Analysis of Financial Condition and Results of Operations
Item 3. Quantitative and Qualitative Disclosures About Market Risk
Item 4. Controls and Procedures
Part II. Other Information
Item 1. Legal Proceedings
Item 1A. Risk Factors
Item 2. Unregistered Sales of Equity Securities and Use of Proceeds
Item 3. Defaults Upon Senior Securities
Item 4. Mine Safety Disclosures
Item 5. Other Information
Item 6. Exhibits
EX-31.1 flic-20190331xex31_1.htm
EX-31.2 flic-20190331xex31_2.htm
EX-32 flic-20190331xex32.htm

First of Long Island Earnings 2019-03-31

FLIC 10Q Quarterly Report

Balance SheetIncome StatementCash Flow

10-Q 1 flic-20190331x10q.htm 10-Q flic 20190331 10Q

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, DC 20549

____________



FORM 10-Q



(Mark One)

[X] QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934





 

 

 

 

For the quarterly period ended

March  31, 2019

 



or



[  ] TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934





 

 

 

 

For the transition period from

to

 



Commission file number 001-32964



THE FIRST OF LONG ISLAND CORPORATION

(Exact name of registrant as specified in its charter)

 



 

New York

11-2672906

(State or other jurisdiction of incorporation or organization)

(I.R.S. Employer Identification No.)



 



10 Glen Head Road, Glen Head, NY

 

11545

(Address of principal executive offices)

(Zip Code)

(516) 671-4900

(Registrant's telephone number, including area code)



Not Applicable

(Former name, former address and former fiscal year, if changed since last report)



Indicate by check mark whether the registrant: (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.

Yes    No  



Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files).

Yes    No  



Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.





 

Large accelerated filer 

Accelerated filer 

Non‑accelerated filer  

Emerging growth company 

Smaller reporting 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. 



Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).

Yes    No  



As of May 3, 2019, the registrant had 24,900,813 shares of common stock, $.10 par value per share, outstanding.



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, $.10 par value per share       

FLIC

Nasdaq






 

TABLE OF CONTENTS





 

 

PART I.

FINANCIAL INFORMATION

 

ITEM 1.

Financial Statements

 



Consolidated Balance Sheets (Unaudited) – March 31, 2019 and December 31, 2018



Consolidated Statements of Income (Unaudited) – Three Months Ended March 31, 2019 and 2018



Consolidated Statements of Comprehensive Income (Unaudited) – Three Months Ended March 31, 2019 and 2018



Consolidated Statements of Changes in Stockholders’ Equity (Unaudited) – Three Months Ended March 31, 2019 and 2018



Consolidated Statements of Cash Flows (Unaudited) – Three Months Ended March 31, 2019 and 2018



Notes to Unaudited Consolidated Financial Statements

ITEM 2.

Management’s Discussion and Analysis of Financial Condition and Results of Operations

21 

ITEM 3.

Quantitative and Qualitative Disclosures About Market Risk

28 

ITEM 4.

Controls and Procedures

31 

PART II.

OTHER INFORMATION

 

ITEM 1.

Legal Proceedings

31 

ITEM 1A.

Risk Factors

31 

ITEM 2.

Unregistered Sales of Equity Securities and Use of Proceeds

31 

ITEM 3.

Defaults Upon Senior Securities

31 

ITEM 4.

Mine Safety Disclosures

31 

ITEM 5.

Other Information

31 

ITEM 6.

Exhibits

31 



Signatures

33 



 



 


 

PART 1. FINANCIAL INFORMATION

ITEM 1. FINANCIAL STATEMENTS



CONSOLIDATED BALANCE SHEETS (UNAUDITED)

 



 

 

 

 

 

 



 

 

 

 

 

 



 

March 31,

 

December 31,

(dollars in thousands)

 

2019

 

2018

Assets:

 

 

 

 

 

 

Cash and cash equivalents

 

$

44,017 

 

$

47,358 



 

 

 

 

 

 

Investment securities:

 

 

 

 

 

 

Held-to-maturity, at amortized cost (fair value of $5,172 and $5,552)

 

 

5,124 

 

 

5,504 

Available-for-sale, at fair value

 

 

749,921 

 

 

758,015 



 

 

755,045 

 

 

763,519 

Loans:

 

 

 

 

 

 

Commercial and industrial

 

 

100,944 

 

 

98,785 

Secured by real estate:

 

 

 

 

 

 

Commercial mortgages

 

 

1,304,886 

 

 

1,281,295 

Residential mortgages

 

 

1,777,332 

 

 

1,809,651 

Home equity lines

 

 

66,049 

 

 

67,710 

Consumer and other

 

 

5,107 

 

 

5,958 



 

 

3,254,318 

 

 

3,263,399 

Allowance for loan losses

 

 

(30,199)

 

 

(30,838)



 

 

3,224,119 

 

 

3,232,561 



 

 

 

 

 

 

Restricted stock, at cost

 

 

29,411 

 

 

40,686 

Bank premises and equipment, net

 

 

41,081 

 

 

41,267 

Right-of-use asset - operating leases

 

 

15,191 

 

 

 —

Bank-owned life insurance

 

 

81,460 

 

 

80,925 

Pension plan assets, net

 

 

15,141 

 

 

15,154 

Deferred income tax benefit

 

 

837 

 

 

3,447 

Other assets

 

 

16,374 

 

 

16,143 



 

$

4,222,676 

 

$

4,241,060 

Liabilities:

 

 

 

 

 

 

Deposits:

 

 

 

 

 

 

Checking

 

$

925,141 

 

$

935,574 

Savings, NOW and money market

 

 

1,699,996 

 

 

1,590,341 

Time, $100,000 and over

 

 

292,370 

 

 

309,165 

Time, other

 

 

389,702 

 

 

249,892 



 

 

3,307,209 

 

 

3,084,972 



 

 

 

 

 

 

Short-term borrowings

 

 

135,176 

 

 

388,923 

Long-term debt

 

 

366,472 

 

 

362,027 

Operating lease liability

 

 

15,999 

 

 

 —

Accrued expenses and other liabilities

 

 

11,378 

 

 

16,951 



 

 

3,836,234 

 

 

3,852,873 

Stockholders' Equity:

 

 

 

 

 

 

Common stock, par value $.10 per share: 

 

 

 

 

 

 

Authorized, 80,000,000 shares;

 

 

 

 

 

 

Issued and outstanding,  24,900,347 and 25,422,740 shares

 

 

2,490 

 

 

2,542 

Surplus

 

 

132,018 

 

 

145,163 

Retained earnings

 

 

256,512 

 

 

249,922 



 

 

391,020 

 

 

397,627 

Accumulated other comprehensive loss, net of tax

 

 

(4,578)

 

 

(9,440)



 

 

386,442 

 

 

388,187 



 

$

4,222,676 

 

$

4,241,060 



See notes to unaudited consolidated financial statements

 

1


 

CONSOLIDATED STATEMENTS OF INCOME (UNAUDITED)





 

 

 

 

 

 



 

 

 

 

 

 



 

 

 

 

 

 



 

Three Months Ended March 31,

(in thousands, except per share data)

 

2019

 

2018

Interest and dividend income:

 

 

 

 

 

 

Loans

 

$

29,416 

 

$

26,664 

Investment securities:

 

 

 

 

 

 

Taxable

 

 

4,045 

 

 

2,209 

Nontaxable

 

 

3,092 

 

 

3,431 



 

 

36,553 

 

 

32,304 

Interest expense:

 

 

 

 

 

 

Savings, NOW and money market deposits

 

 

4,000 

 

 

2,540 

Time deposits

 

 

3,398 

 

 

1,708 

Short-term borrowings

 

 

1,965 

 

 

783 

Long-term debt

 

 

1,780 

 

 

2,117 



 

 

11,143 

 

 

7,148 

Net interest income

 

 

25,410 

 

 

25,156 

Provision (credit) for loan losses

 

 

(457)

 

 

1,512 

Net interest income after provision (credit) for loan losses

 

 

25,867 

 

 

23,644 



 

 

 

 

 

 

Noninterest income:

 

 

 

 

 

 

Investment Management Division income

 

 

481 

 

 

581 

Service charges on deposit accounts

 

 

705 

 

 

700 

Other

 

 

1,258 

 

 

2,011 



 

 

2,444 

 

 

3,292 

Noninterest expense:

 

 

 

 

 

 

Salaries and employee benefits

 

 

9,258 

 

 

9,217 

Occupancy and equipment

 

 

2,937 

 

 

2,813 

Other

 

 

2,940 

 

 

2,838 



 

 

15,135 

 

 

14,868 

Income before income taxes

 

 

13,176 

 

 

12,068 



 

 

 

 

 

 

Income tax expense

 

 

2,335 

 

 

957 

Net income

 

$

10,841 

 

$

11,111 



 

 

 

 

 

 

Earnings per share:

 

 

 

 

 

 

Basic

 

 

$.43

 

 

$.44

Diluted

 

 

$.43

 

 

$.44



 

 

 

 

 

 

Cash dividends declared per share

 

 

$.17

 

 

$.15



See notes to unaudited consolidated financial statements 

 

 

2


 

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (UNAUDITED) 

 





 

 

 

 

 

 



 

 

 

 

 

 



 

Three Months Ended March 31,

(in thousands)

 

2019

 

2018

Net income

 

$

10,841 

 

$

11,111 

Other comprehensive income (loss):

 

 

 

 

 

 

Change in net unrealized holding gains (losses) on
  available-for-sale securities

 

 

8,417 

 

 

(11,734)

Change in funded status of pension plan

 

 

88 

 

 

 —

Change in net unrealized loss on derivative instruments

 

 

(1,545)

 

 

 —

Other comprehensive income (loss) before income taxes

 

 

6,960 

 

 

(11,734)

Income tax expense (benefit)

 

 

2,098 

 

 

(3,548)

Other comprehensive income (loss)

 

 

4,862 

 

 

(8,186)

Comprehensive income

 

$

15,703 

 

$

2,925 



See notes to unaudited consolidated financial statements 

 

 

3


 

CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY (UNAUDITED)

 





 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 



 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 



 

Three Months Ended March 31, 2019



 

 

 

 

 

 

 

 

 

 

 

 

Accumulated

 

 

 



 

 

 

 

 

 

 

 

 

 

 

 

Other

 

 

 



 

Common Stock

 

 

 

 

Retained

 

Comprehensive

 

 

 

(dollars in thousands)

 

Shares

 

Amount

 

Surplus

 

Earnings

 

Loss

 

Total

Balance, January 1, 2019

 

25,422,740 

 

$

2,542 

 

$

145,163 

 

$

249,922 

 

$

(9,440)

 

$

388,187 

Net income

 

 

 

 

 

 

 

 

 

 

10,841 

 

 

 

 

 

10,841 

Other comprehensive income

 

 

 

 

 

 

 

 

 

 

 

 

 

4,862 

 

 

4,862 

Repurchase of common stock

 

(674,800)

 

 

(67)

 

 

(15,264)

 

 

 

 

 

 

 

 

(15,331)

Shares withheld upon the vesting

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

and conversion of RSUs

 

(39,947)

 

 

(4)

 

 

(826)

 

 

 

 

 

 

 

 

(830)

Common stock issued under

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

stock compensation plans

 

122,456 

 

 

12 

 

 

223 

 

 

 

 

 

 

 

 

235 

Common stock issued under

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

dividend reinvestment and

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

stock purchase plan

 

69,898 

 

 

 

 

1,427 

 

 

 

 

 

 

 

 

1,434 

Stock-based compensation

 

 

 

 

 

 

 

1,295 

 

 

 

 

 

 

 

 

1,295 

Cash dividends declared

 

 

 

 

 

 

 

 

 

 

(4,251)

 

 

 

 

 

(4,251)

Balance, March 31, 2019

 

24,900,347 

 

$

2,490 

 

$

132,018 

 

$

256,512 

 

$

(4,578)

 

$

386,442 









 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 



 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 



 

Three Months Ended March 31, 2018



 

 

 

 

 

 

 

 

 

 

 

 

Accumulated

 

 

 



 

 

 

 

 

 

 

 

 

 

 

 

Other

 

 

 



 

Common Stock

 

 

 

 

Retained

 

Comprehensive

 

 

 

(dollars in thousands)

 

Shares

 

Amount

 

Surplus

 

Earnings

 

Income (Loss)

 

Total

Balance, January 1, 2018

 

24,668,390 

 

$

2,467 

 

$

127,122 

 

$

224,315 

 

$

546 

 

$

354,450 

Net income

 

 

 

 

 

 

 

 

 

 

11,111 

 

 

 

 

 

11,111 

Other comprehensive loss

 

 

 

 

 

 

 

 

 

 

 

 

 

(8,186)

 

 

(8,186)

Reclassification of stranded

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

tax effects upon the adoption

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

of ASU 2018-02

 

 

 

 

 

 

 

 

 

 

277 

 

 

(277)

 

 

 —

Shares withheld upon the vesting

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

and conversion of RSUs

 

(25,321)

 

 

(3)

 

 

(719)

 

 

 

 

 

 

 

 

(722)

Common stock issued under

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

stock compensation plans

 

112,237 

 

 

11 

 

 

101 

 

 

 

 

 

 

 

 

112 

Common stock issued under

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

dividend reinvestment and

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

stock purchase plan

 

269,361 

 

 

27 

 

 

7,292 

 

 

 

 

 

 

 

 

7,319 

Stock-based compensation

 

 

 

 

 

 

 

1,128 

 

 

 

 

 

 

 

 

1,128 

Cash dividends declared

 

 

 

 

 

 

 

 

 

 

(3,766)

 

 

 

 

 

(3,766)

Balance, March 31, 2018

 

25,024,667 

 

$

2,502 

 

$

134,924 

 

$

231,937 

 

$

(7,917)

 

$

361,446 



See notes to unaudited consolidated financial statements

 

 

4


 

CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED) 





 

 

 

 

 

 



 

 

 

 

 

 



 

Three Months Ended March 31,

(in thousands)

 

2019

 

2018

Cash Flows From Operating Activities:

 

 

 

 

 

 

Net income

 

$

10,841 

 

$

11,111 

Adjustments to reconcile net income to net cash provided by operating activities:

 

 

 

 

 

 

Provision (credit) for loan losses

 

 

(457)

 

 

1,512 

Provision (credit) for deferred income taxes

 

 

512 

 

 

(3,301)

Depreciation and amortization of premises and equipment

 

 

987 

 

 

917 

Amortization of right-of-use asset - operating leases

 

 

522 

 

 

 —

Premium amortization on investment securities, net

 

 

284 

 

 

466 

Stock-based compensation expense

 

 

1,295 

 

 

1,128 

Common stock issued in lieu of cash for director fees

 

 

32 

 

 

16 

Accretion of cash surrender value on bank-owned life insurance

 

 

(535)

 

 

(488)

Pension expense (credit)

 

 

101 

 

 

(80)

(Increase) decrease in other assets

 

 

(231)

 

 

1,944 

Decrease in accrued expenses and other liabilities

 

 

(2,381)

 

 

(478)

Net cash provided by operating activities

 

 

10,970 

 

 

12,747 

Cash Flows From Investing Activities:

 

 

 

 

 

 

Proceeds from maturities and redemptions of investment securities:

 

 

 

 

 

 

Held-to-maturity

 

 

386 

 

 

1,054 

Available-for-sale

 

 

18,747 

 

 

17,032 

Purchases of investment securities:

 

 

 

 

 

 

Held-to-maturity

 

 

 —

 

 

(338)

Available-for-sale

 

 

(2,526)

 

 

(122,960)

Net decrease (increase) in loans

 

 

8,899 

 

 

(184,761)

Proceeds from sale of other real estate owned

 

 

 —

 

 

5,125 

Net decrease in restricted stock

 

 

11,275 

 

 

4,130 

Purchases of premises and equipment, net

 

 

(801)

 

 

(1,289)

Purchases of bank-owned life insurance

 

 

 —

 

 

(20,000)

Net cash provided by (used in) investing activities

 

 

35,980 

 

 

(302,007)

Cash Flows From Financing Activities:

 

 

 

 

 

 

Net increase in deposits

 

 

222,237 

 

 

381,652 

Net decrease in short-term borrowings

 

 

(253,747)

 

 

(108,364)

Proceeds from long-term debt

 

 

14,445 

 

 

39,680 

Repayment of long-term debt

 

 

(10,000)

 

 

(26,450)

Proceeds from issuance of common stock, net

 

 

1,434 

 

 

7,319 

Proceeds from exercise of stock options

 

 

203 

 

 

96 

Shares withheld upon the vesting and conversion of RSUs

 

 

(830)

 

 

(722)

Repurchase of common stock

 

 

(15,331)

 

 

 —

Cash dividends paid

 

 

(8,702)

 

 

(3,705)

Net cash (used in) provided by financing activities

 

 

(50,291)

 

 

289,506 

Net (decrease) increase in cash and cash equivalents

 

 

(3,341)

 

 

246 

Cash and cash equivalents, beginning of year

 

 

47,358 

 

 

69,672 

Cash and cash equivalents, end of period

 

$

44,017 

 

$

69,918 

Supplemental Cash Flow Disclosures:

 

 

 

 

 

 

  Cash paid for:

 

 

 

 

 

 

     Interest

 

$

10,896 

 

$

7,091 

     Operating cash flows from operating leases

 

 

712 

 

 

 —

Noncash investing and financing activities:

 

 

 

 

 

 

     Right-of-use assets obtained in exchange for operating lease liabilities

 

 

15,713 

 

 

 —

     Cash dividends payable

 

 

 

 

3,859 

 

See notes to unaudited consolidated financial statements 

 

5


 

NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS

 

1 - BASIS OF PRESENTATION 



The accounting and reporting policies of The First of Long Island Corporation (“Corporation”) reflect banking industry practice and conform to generally accepted accounting principles (“GAAP”) in the United States. In preparing the consolidated financial statements, management is required to make estimates, such as the allowance for loan losses, and assumptions that affect the reported asset and liability balances, revenue and expense amounts, and the disclosure of contingent assets and liabilities. Actual results could differ significantly from those estimates.



The consolidated financial statements include the accounts of the Corporation and its wholly-owned subsidiary, The First National Bank of Long Island (“Bank”). The Bank has two wholly owned subsidiaries: FNY Service Corp. and The First of Long Island Agency, Inc. The Bank and FNY Service Corp. jointly own another subsidiary, The First of Long Island REIT, Inc., a real estate investment trust. The consolidated entity is referred to as the “Corporation” and the Bank and its subsidiaries are collectively referred to as the “Bank.” All intercompany balances and amounts have been eliminated. For further information refer to the consolidated financial statements and notes thereto included in the Corporation's Annual Report on Form 10-K for the year ended December 31, 2018.



The consolidated financial information included herein as of and for the periods ended March 31, 2019 and 2018 is unaudited. However, such information reflects all adjustments which are, in the opinion of management, necessary for a fair statement of results for the interim periods. The December 31, 2018 consolidated balance sheet was derived from the Corporation's December 31, 2018 audited consolidated financial statements. When appropriate, items in the prior year financial statements are reclassified to conform to the current period presentation.



2 - EARNINGS PER SHARE



The following table sets forth the calculation of basic and diluted earnings per share (“EPS”) for the periods indicated.







 

 

 

 

 

 



 

 

 

 

 

 



 

Three Months Ended



 

March 31,

(dollars in thousands, except per share data)

 

2019

 

2018

Net income

 

$

10,841 

 

$

11,111 

Income allocated to participating securities (1)

 

 

 —

 

 

37 

Income allocated to common stockholders

 

$

10,841 

 

$

11,074 



 

 

 

 

 

 

Weighted average:

 

 

 

 

 

 

Common shares

 

 

25,284,357 

 

 

24,962,520 

Dilutive stock options and restricted stock units (1)

 

 

156,204 

 

 

204,345 



 

 

25,440,561 

 

 

25,166,865 

Earnings per share:

 

 

 

 

 

 

Basic

 

 

$.43

 

 

$.44

Diluted

 

 

.43

 

 

.44



(1) Restricted stock units (“RSUs”) awarded in 2016 accrued dividends at the same rate as the dividends declared by the Board of Directors on the Corporation’s common stock. For purposes of computing EPS, these RSUs were considered to participate with common stock in the earnings of the Corporation and, therefore, the Corporation calculated basic and diluted EPS using the two-class method. Substantially all of the RSUs awarded in 2016 vested on December 31, 2018. As a result, beginning in 2019, the Corporation calculates basic and dilutive EPS using the treasury stock method.

 

3 - COMPREHENSIVE INCOME



Comprehensive income includes net income and other comprehensive income (loss). Other comprehensive income (loss) includes revenues, expenses, gains and losses that under GAAP are included in comprehensive income but excluded from net income. Other comprehensive income (loss) for the Corporation consists of unrealized holding gains or losses on available-for-sale securities and derivative instruments and changes in the funded status of the Bank’s defined benefit pension plan, all net of related income taxes. Accumulated other comprehensive income (loss) is recognized as a separate component of stockholders’ equity.



 

6


 

The components of other comprehensive income (loss) and the related tax effects are as follows:

 





 

 

 

 

 

 



 

 

 

 

 

 



 

Three Months Ended



 

March 31,

(in thousands)

 

2019

 

2018

Change in net unrealized holding gains (losses) on available-for-sale securities:

 

 

 

 

 

 

Change arising during the period

 

$

8,417 

 

$

(11,734)

Tax effect

 

 

2,536 

 

 

(3,548)



 

 

5,881 

 

 

(8,186)

Change in funded status of pension plan:

 

 

 

 

 

 

Amortization of net actuarial loss included in net income (1)

 

 

88 

 

 

 —

Tax effect

 

 

27 

 

 

 —



 

 

61 

 

 

 —

Change in unrealized loss on derivative instrument:

 

 

 

 

 

 

Amount of loss recognized during the period

 

 

(1,614)

 

 

 —

Reclassification adjustment for net interest expense included in net income (2)

 

 

69 

 

 

 —



 

 

(1,545)

 

 

 —

Tax effect

 

 

(465)

 

 

 —



 

 

(1,080)

 

 

 —

Other comprehensive income (loss)

 

$

4,862 

 

$

(8,186)



(1) Represents the amortization of net actuarial loss relating to the Corporation’s defined benefit pension plan. This item is a component of net periodic pension cost (see “Note 7 – Defined Benefit Pension Plan”) and included in the consolidated statements of income in the line item, “Other noninterest income.”



(2) Represents the net interest expense recorded on derivative transactions and included in the consolidated statements of income under “Interest expense.”



The following table sets forth the components of accumulated other comprehensive loss, net of tax:





 

 

 

 

 

 

 

 

 



 

 

 

 

 

 

 

 

 



 

 

 

 

 

 



 

 

 

 

Current

 

 

 



 

Balance

 

Period

 

Balance

(in thousands)

 

12/31/18

 

Change

 

3/31/19

Unrealized holding gains (losses) on available-for-sale securities

 

$

(2,955)

 

$

5,881 

 

$

2,926 

Unrealized actuarial loss on pension plan

 

 

(5,696)

 

 

61 

 

 

(5,635)

Unrealized loss on derivative instruments

 

 

(789)

 

 

(1,080)

 

 

(1,869)

   Accumulated other comprehensive loss, net of tax

 

$

(9,440)

 

$

4,862 

 

$

(4,578)

 

 







 

7


 

4 - INVESTMENT SECURITIES



The following tables set forth the amortized cost and estimated fair values of the Bank’s investment securities.







 

 

 

 

 

 

 

 

 

 

 

 



 

 

 

 

 

 

 

 

 

 

 

 



 

March 31, 2019



 

 

 

 

Gross

 

Gross

 

 

 



 

Amortized

 

Unrealized

 

Unrealized

 

Fair

(in thousands)

 

Cost

 

Gains

 

Losses

 

Value

Held-to-Maturity Securities:

 

 

 

 

 

 

 

 

 

 

 

 

State and municipals

 

$

4,809 

 

$

35 

 

$

 —

 

$

4,844 

Pass-through mortgage securities

 

 

260 

 

 

13 

 

 

 —

 

 

273 

Collateralized mortgage obligations

 

 

55 

 

 

 —

 

 

 —

 

 

55 



 

$

5,124 

 

$

48 

 

$

 —

 

$

5,172 

Available-for-Sale Securities:

 

 

 

 

 

 

 

 

 

 

 

 

State and municipals

 

$

408,205 

 

$

5,932 

 

$

(1,792)

 

$

412,345 

Pass-through mortgage securities

 

 

66,833 

 

 

284 

 

 

(558)

 

 

66,559 

Collateralized mortgage obligations

 

 

151,695 

 

 

1,755 

 

 

(163)

 

 

153,287 

Corporate bonds

 

 

119,000 

 

 

 —

 

 

(1,270)

 

 

117,730 



 

$

745,733 

 

$

7,971 

 

$

(3,783)

 

$

749,921 



 

 

 

 

 

 

 

 

 

 

 

 



 

December 31, 2018

Held-to-Maturity Securities:

 

 

 

 

 

 

 

 

 

 

 

 

State and municipals

 

$

5,142 

 

$

36 

 

$

 —

 

$

5,178 

Pass-through mortgage securities

 

 

267 

 

 

11 

 

 

 —

 

 

278 

Collateralized mortgage obligations

 

 

95 

 

 

 

 

 —

 

 

96 



 

$

5,504 

 

$

48 

 

$

 —

 

$

5,552 

Available-for-Sale Securities:

 

 

 

 

 

 

 

 

 

 

 

 

State and municipals

 

$

422,235 

 

$

3,220 

 

$

(5,417)

 

$

420,038 

Pass-through mortgage securities

 

 

66,631 

 

 

24 

 

 

(1,169)

 

 

65,486 

Collateralized mortgage obligations

 

 

154,378 

 

 

886 

 

 

(363)

 

 

154,901 

Corporate bonds

 

 

119,000 

 

 

 —

 

 

(1,410)

 

 

117,590 



 

$

762,244 

 

$

4,130 

 

$

(8,359)

 

$

758,015 



At March 31, 2019 and December 31, 2018, investment securities with a carrying value of $391,614,000 and $342,712,000, respectively, were pledged as collateral to secure public deposits and borrowed funds.



There were no holdings of any one issuer, other than the U.S. Government and its agencies, in an amount greater than 10% of stockholders’ equity at March 31, 2019 and December 31, 2018.



 

8


 

Securities With Unrealized Losses. The following tables set forth securities with unrealized losses presented by the length of time the securities have been in a continuous unrealized loss position.







 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 



 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 



 

March 31, 2019



 

Less than

 

12 Months

 

 

 

 

 

 



 

12 Months

 

or More

 

Total



 

Fair

 

Unrealized

 

Fair

 

Unrealized

 

Fair

 

Unrealized

(in thousands)

 

Value

 

Loss

 

Value

 

Loss

 

Value

 

Loss

State and municipals

 

$

 —

 

$

 —

 

$

60,339 

 

$

(1,792)

 

$

60,339 

 

$

(1,792)

Pass-through mortgage securities

 

 

 —

 

 

 —

 

 

28,282 

 

 

(558)

 

 

28,282 

 

 

(558)

Collateralized mortgage obligations

 

 

 —

 

 

 —

 

 

7,160 

 

 

(163)

 

 

7,160 

 

 

(163)

Corporate bonds

 

 

117,730 

 

 

(1,270)

 

 

 —

 

 

 —

 

 

117,730 

 

 

(1,270)

Total temporarily impaired

 

$

117,730 

 

$

(1,270)

 

$

95,781 

 

$

(2,513)

 

$

213,511 

 

$

(3,783)



 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 



 

December 31, 2018

State and municipals

 

$

102,882 

 

$

(1,639)

 

$

62,995 

 

$

(3,778)

 

$

165,877 

 

$

(5,417)