Issuer FWP dated May 2, 2016
Filed Pursuant to Rule 433
Registration No. 333-190505
|
|
FIRST OF LONG ISLAND
Follow-On Offering of Common Shares
May 2016
Ticker: FLIC
www.fnbli.com Michael N. Vittorio President & CEO
|
|
2
Offering Disclosure
Free Writing Prospectus
The First of Long Island Corporation has filed a registration statement (including a prospectus and a related prospectus supplement) with the SEC for the offering to which this communication relates. Before you invest, you should read the prospectus and the prospectus supplement in that registration statement and other documents The First of Long Island Corporation has filed with the SEC for more complete information about The First of Long Island Corporation and this offering. You may get these documents for free by visiting EDGAR on the SEC web site at www.sec.gov. Alternatively, copies of the preliminary prospectus supplement and the prospectus relating to the offering may be obtained from Sandler O’Neill + Partners, L.P., 1251 Avenue of the Americas, 6th Floor, New York, NY 10020, (866) 805-4128.
Forward Looking Statements and Risk Factors
This presentation contains forward-looking information for The First of Long Island Corporation. Such information constitutes forward-looking statements (within the meaning of the Private Securities Litigation Reform Act of 1995) which involve significant risks and uncertainties. Please refer to the discussion of the risk factors set forth in the prospectus supplement and the documents incorporated by reference therein for those factors that may cause actual results to differ materially from the results discussed in these forward-looking statements.
|
|
3 Offering Summary Issuer: The First of Long Island Corporation
Type of Offering: Follow-On Public Offering
Type of Security: Common Stock
Ticker Symbol: FLIC
Exchange: The NASDAQ Capital Market
Offering Size: $35 Million
Over-Allotment Option: 15%
Use of Proceeds: General Corporate Purposes, Including Support For Organic Growth and Financing Possible Acquisitions of Branches or Fee-Based Businesses
Book-Running Manager: Sandler O’Neill + Partners, L.P.
|
|
4
Franchise Overview
Operates on Long Island and in Two Boroughs of New York City
Provides Full Range of Financial Services to:
Small Businesses
Middle Market Companies
Local Municipalities
Professional Practices
Service Conscious Retail Customers
44 Branches
Nassau County, Long Island: 24
Suffolk County, Long Island: 16
Manhattan: 2
Queens: 2 (Opened in 2015)
Brooklyn: Opening Branch in 2016
Investment and Trust Services Through Our Investment Management Division
|
|
| 5 |
|
Experienced Executive Staff Executive Title Years with FLIC Years in Banking
Michael N. Vittorio President & Chief Executive Officer 14 41
Sallyanne K. Ballweg Senior Executive Vice President 9 38
Mark D. Curtis EVP, Chief Financial Officer and Treasurer 19 28
Christopher Becker EVP, Chief Risk Officer 5 27
Paul J. Daley EVP, Senior Commercial Banking Officer 20 32
Richard Kick EVP, Senior Retail Lending Officer, Senior Facilities Administrator and Chief Security Officer 25 35
Donald L. Manfredonia EVP, Senior Lending Officer and Deputy CRA Officer – Lending 34 42
Richard P. Perro EVP, Branch Administration & Deputy Security Officer 14 27
|
|
6
Strategic Objectives
Maintain Pristine Credit Quality
Perpetuate Operational Efficiency
Branch Expansion
Continue to Grow Reputation and Brand Identity
Expand Fee Income Opportunities
Effective Balance Sheet Management
Attract and Retain Talented Executives and Staff
|
|
7
Financial Summary
Data as of March 31, 2016
Note: The First of Long Island Corporation has $220,000 of total intangible assets
Source: Company documents, SNL Financial LC Total Assets: $3.2 Billion Total Loans: $2.3 Billion Total Deposits: $2.6 Billion Loans / Deposits: 90.3% Nonaccrual Loans/ Loans: 0.06% Common Stockholders’ Equity: $260.4 Million Book Value per Common Share: $18.32 Regulatory Capital Ratios at 3/31/2016 7.92% Common Equity Tier 1 Risk-Based Capital Ratio: 12.95% Tier 1 Risk Based Capital Ratio: 12.95% Total Risk Based Capital Ratio: 14.21%
|
|
8
Evolution of Branch Distribution
Year-End 2000
Year-End 2010
19 Branches
33 Branches
|
|
9
Evolution of Branch Distribution 2016 Branch Distribution Summary
Existing Branch
Coming Soon 46 Branches
|
|
10 First Quarter 2016 Highlights
Net Income Increased 14.6% to $7.4 Million
Earnings Per Share Increased 13.0% to $0.52
Cash Dividends Per Share Increased 5.3% to $0.20
22.9% Growth in the Average Balance of Loans
19.3% Growth in the Average Balance of Total Deposits
19.2% Growth in the Average Balance of Noninterest-Bearing Checking Deposits
Total Assets of $3.2 Billion at Quarter End, Increasing 15.9%
Note: Reported increases in financial data are comparisons of the current three-month period (March 31, 2016) to the same period last year (March 31, 2015)
|
|
YOY Growth:
12.5%
11 Net Income Net Income ($000)
Source: Company documents, SNL Financial LC
CAGR: 7.7% $11,227 $11,482 $12,962 $13,463 $18,392 $19,457 $20,393 $21,300 $23,014 $25,890 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015
|
|
12 Net Income Net Income ($000)
Source: Company documents, SNL Financial LC
% Increase: 14.6% $6,485 $7,430 2015Q1 2016Q1
|
|
13 Earnings Per Share
Earnings Per Share ($)
CAGR: 5.9% Source: Company documents, SNL Financial LC $0.97 $1.01 $1.18 $1.23 $1.53 $1.46 $1.51 $1.55 $1.65 $1.83 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015
YOY Growth:
10.9%
|
|
14
Earnings Per Share
Earnings Per Share ($)
Source: Company documents, SNL Financial LC
% Increase: 13.0% $0.46 $0.52 2015Q1 2016Q1
|
|
15
Dividends Per Share
Dividends Per Share ($)
CAGR: 10.4%
Source: Company documents, SNL Financial LC $0.33 $0.39 $0.44 $0.51 $0.56 $0.60 $0.64 $0.68 $0.72 $0.78 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015
YOY Growth:
8.3%
|
|
16
Dividends Per Share ($)
Source: Company documents, SNL Financial LC
% Increase: 5.3% $0.19 $0.20 2015Q1 2016Q1
Dividends Per Share
|
|
17
Book Value Per Share Book Value Per Share ($)
Source: Company documents, SNL Financial LC
CAGR: 8.6% $8.40 $9.15 $9.50 $10.77 $12.00 $14.35 $15.21 $15.06 $16.80 $17.78 $18.32 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016Q1
YOY Growth:
5.8%
Quarterly Increase:
3.0%
Historical Shareholder Wealth Creation
Five Year Total Shareholder Return1 (%)
Simple Price Appreciation
Dividends Reinvested
100.00%
100.00%
94.71%
91.52%
105.35%
98.47%
164.09%
149.06%
166.36%
147.97%
182.27%
156.47%
187.36%
159.65%
2010 2011 2012 1213 2014 2015 20163
Ten Year Total Shareholder Return2 (%)
Simple Price Appreciation
Dividends Reinvested
100.00%
100.00%
106.29%
104.05%
93.39%
87.81%
123.35%
112.43%
135.33%
119.53%
159.20%
136.14%
150.78%
124.59%
167.72%
134.06%
261.24%
202.93%
264.85%
201.44%
290.18%
213.02%
298.27%
217.35%
2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 20163
(1) Based on starting stock price on December 31, 2010
(2) Based on starting stock price on December 30, 2005
(3) Market data as of April 29, 2016
Source: Company documents, SNL Financial LC
18
|
|
19
Commitment to Organic Growth
Total Assets ($Millions)
CAGR: 12.7%
Source: Company documents, SNL Financial LC $954.2 $1,069.0 $1,261.6 $1,675.2 $1,711.0 $2,022.4 $2,108.3 $2,399.9 $2,721.5 $3,130.3 $3,234.4 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016Q1
YOY Growth:
15.0%
Quarterly Increase:
3.3%
|
|
20
Total Loans
Source: Company documents, SNL Financial LC
Gross Loans ($Millions) $986 $1,147 $1,478 $1,805 $2,248 $2,309 2011 2012 2013 2014 2015 2016Q1
CAGR: 19.5%
YOY Growth:
24.5%
Quarterly Increase:
2.7%
|
|
21
Total Deposits
Source: Company documents, SNL Financial LC
Total Deposits ($Millions)
CAGR: 13.8% $1,503 $1,633 $1,782 $1,985 $2,285 $2,556 2011 2012 2013 2014 2015 2016Q1
YOY Growth:
15.1%
Quarterly Increase:
11.9%
|
|
22
Total DDA
DDA ($ Millions)
CAGR: 13.9%
Source: Company documents $436 $529 $599 $656 $778 $768 2011 2012 2013 2014 2015 2016Q1
YOY Growth:
18.6%
Quarterly Change:
-1.3%
|
|
23
Consistent Profitability
Assets (%)
Source: Company documents, SNL Financial LC 1.05% 0.99% 0.95% 0.92% 0.89% 0.94% 2011 2012 2013 2014 2015 2016Q1 11.15% 10.19% 10.49% 10.25% 10.64% 11.62% 2011 2012 2013 2014 2015 2016Q1 51.5% 53.7% 51.9% 51.7% 51.1% 51.2% 2011 2012 2013 2014 2015 2016Q1 1.98% 1.82% 1.76% 1.67% 1.57% 1.58% 2011 2012 2013 2014 2015 2016Q1
|
|
24
Asset Quality Ratios
Source: Company documents Dollars in Thousands December 31, March 31, 2011 2012 2013 2014 2015 2016 Total Past Due, Nonaccrual and Restructured Loans: Past Due 30 Through 89 Days 740 884 184 2,186 1,003 265 Nonaccrual 3,211 4,098 4,496 1,704 1,435 1,313 Troubled Debt Restructurings 5,394 4,383 3,089 1,984 4,481 4,438 Allowance for Loan Losses 16,572 18,624 20,848 23,221 27,256 27,524 Allowance for Loan Losses as a Percentage of Total Loans 1.68% 1.62% 1.41% 1.29% 1.21% 1.19% Allowance for Loan Losses as a Multiple of Nonaccrual Loans 5.2x 4.5x 4.6x 13.6x 19.0x 21.0x Past Due 30 Through 89 Days / Loans 0.08% 0.08% 0.01% 0.12% 0.04% 0.01% Nonaccrual Loans / Loans 0.33% 0.36% 0.30% 0.09% 0.06% 0.06% Net Chargeoffs / Average Loans 0.16% 0.15% 0.06% 0.05% 0.01% 0.00%
|
|
25
Investment Considerations
Measured and Disciplined Approach to Risk and Growth
Consistent and Pristine Asset Quality Over the Years and Throughout the Great Recession
Strong and Consistent Profitability Despite Fragile Economy
Operating in One of the Best Retail Banking Markets in the Country
Our Brand and Reputation Continue to Grow
Experienced Executive Staff
Compelling/Abundant Opportunities Going Forward
Well-Positioned for Rising Interest Rate Environment
|
|
Appendix
26
|
|
27 Recent Franchise Expansion Hewlett Branch 1301 Broadway
Opened: February 1, 2016
Total Deposits¹: $40 Million
(1)As of March 17, 2016 Source: Company documents
|
|
28 Recent Franchise Expansion Howard Beach Branch 159-14 Cross Bay Boulevard
Opened: September 28, 2015
Total Deposits¹: $24 Million
Whitestone Branch 19-01 Utopia Parkway
Opened: December 14, 2015
Total Deposits¹: $80 Million
(1)As of March 17, 2016 Source: Company documents
|
|
29 Recent Franchise Expansion Melville Branch 555 Broad Hollow Road
Opened: April 20, 2015
Total Deposits¹: $31 Million
Patchogue Branch 392 East Main Street
Opened: March 30, 2015
Total Deposits¹: $43 Million
(1)As of March 17, 2016 Source: Company documents
|
|
Loan Composition
Loan Approval Generally Requires: Loan to Value Ratio of 75% or Less FICO Score of 700 or Better Debt Service Coverage Ratio of 1.25x or Better and a Stressed Debt Service Coverage Ratio of 1.0x or Better
Residential Loans in Excess of $1 Million and Other Loans in Excess of $500,000 Generally Require the Approval of the Management Loan Committee
Loans in Excess of $10 Million Require the Approval of Two Non-Management Members of the Board Loan Committee
Loans in Excess of $15 Million Require the Recommendation of the Management Loan Committee and the Approval of a Majority of the Board
(Dollar Values in Thousands)
Loan Composition as of 3/31/2016
Loan Type Balance% Total
C&I $102,257 4.4%
Commercial Mortgages 1,044,950 45.2%
Residential Mortgages 1,068,824 46.3%
Home Equity Lines 87,290 3.8%
Consumer & Other 5,831 0.3%
Total $2,309,152 100.0%
Home Equity Lines 3.8%
Consumer & Other
0.3%
C&I 4.4%
Residential Mortgages 46.3%
Commercial Mortgages 45.2%
Source: Company documents, SNL Financial LC
30
|
|
Deposit Composition
19.3% Growth¹ in the Average Balance of Total Deposits
19.2% Growth¹ in the Average Balance of Noninterest-Bearing Checking Deposits
Our Growth Reflects the Type of Franchise Value We are Building with Our Lucrative Target Markets: Small Businesses
- $500,000—$10 Million in Sales Middle Market Companies
- $10 Million—$100 Million in Sales Local Municipalities Professional Practices
- Doctors, Lawyers, Dentists and CPAs Service Conscious Retail Customers
(Dollar Values in Thousands)
Deposit Composition as of 3/31/2016
Deposit Type Balance% Total
Checking $767,797 30.0%
Savings, NOW & Money Market 1,481,455 58.0%
Time Under $100K 109,285 4.3%
Time $100K and Over 197,466 7.7%
Total $2,556,003 100.0%
Time Under $100K
4.3%
Time $100K and Over 7.7%
Checking 30.0%
Savings, NOW & Money Market 58.0%
(1) March 31, 2016 results compared to the same period last year (March 31, 2015) Source: Company documents, SNL Financial LC
31
|
|
Investment Securities Composition
The Securities Portfolio is Primarily Comprised of: Direct Obligations of the U.S.
Government and its
Agencies, Majority of Which are GNMA
Obligations of States and Political Subdivisions, Rated AA or Better by Major Ratings Agencies
Exceptional Quality
No Corporate Bond, Subordinated Debt or Trust Preferred Holdings We Perform Our Own Credit Analysis Periodic Assessments of the Municipals in Our Portfolio
(Dollar Values in Thousands)
Investment Securities Composition as of 3/31/2016
Security Type Balance% Total
State and Municipals (HTM) $12,203 1.5%
Pass-Through Mortgage (HTM) 560 0.1%
Collateralized Mortgage Obligations (HTM) 815 0.1%
State and Municipals (AFS) 453,957 56.9%
Pass-Through Mortgage (AFS) 177,532 22.2%
Collateralized Mortgage Obligations (AFS) 153,483 19.2%
Total $798,550 100.0%
State and Municipals (HTM) 1.5%
Pass-Through Mortgage (HTM) 0.1%
Collateralized Mortgage Obligations (HTM) 0.1%
Collateralized Mortgage Obligations (AFS) 19.2%
Pass-Through Mortgage (AFS) 22.2%
State and Municipals (AFS) 56.9%
Source: Company documents, SNL Financial LC
32
|
|
Recognition
Sandler O’Neill + Partners Recognized The First of Long Island
Corporation as a “Recession Resistant” Bank in its Industry Note
“Ideas to Bank On.” (February 2016)
2016
The First of Long Island Corporation was Recognized by SNL
Financial as One of the Top 100 Best-Performing Community Banks
in 2015. (March 2016)
2015 Efficient The First Bank National in the Bank Country of Long by Island American is Named Banker. the 59th Most-
The First of Long Island Corporation’s Stock was Named as a
2014 TBV, Tangible Among Book Other Value Criteria, Winner for by the SNL Twelve Financial and Three for its Months Growth Ended in
March 31, 2014. (July 2014)
33
|
|
Recognition
“Risk Management—How The First of Long Island Became the Best
2013 Little Bank in America” as Reported by Long Island Business
News. (May 10-16, 2013)
“The First of Long Island Corporation is the 70th Most Efficient
2012 Bank Holding Company in the Country” as Reported by the
American Banker. (July 23, 2012)
2011 Million “Best Performing and $5 Billion,” Bank in as New Reported York State by SNL with Financial. Assets Between $500
Named as One of the Two Highest Performing Banks in New York
2010 the State Global by Bank Leader Intelligence in Information Solutions, Management a Division and Electronic of FISERV,
Commerce Systems for the Financial Services Industry.
34
|
|
Experienced Executive Staff
Executive
Michael N. Vittorio
Sallyanne K. Ballweg
Mark D. Curtis
Title
President & Chief
Executive Officer
Senior Executive Vice
President
EVP, Chief Financial
Officer and Treasurer
Background
Division Executive – Managed Small to Middle
Market Business at Chase Manhattan Bank
Senior Lending Officer – Served Small Businesses
Nationwide for Chase Manhattan Bank
Senior Vice President – Responsible for Managing
Chase Insurance Agency’s Insurance Brokerage and
Advisory Service Business at J.P. Morgan
Joined The First of Long Island in 2002 and Became
President & CEO in 2003
Served as Senior Vice President and Queens Market
Manager for J.P. Morgan Chase
Joined The First of Long Island as Senior Executive
Vice President in 2007
Senior Audit Manager at KPMG
CFO at Gateway Bancorp in Staten Island Before its
Sale in 1995
EVP, CFO and Treasurer at The First of Long Island
Since 1997
35
|
|
Experienced Executive Staff
Executive
Christopher Becker
Paul J. Daley
Richard Kick
Title
EVP, Chief Risk Officer
EVP, Senior Commercial
Banking Officer
EVP, Senior Retail
Lending Officer, Senior
Facilities Administrator
and Chief Security Officer
Background
EVP and Chief Operating Officer at Bridge Bancorp,
Inc.
EVP and CFO at Smithtown Bancorp, Inc. in
Smithtown, NY Prior to its Sale in 2010
EVP and Chief Risk Officer at The First of Long
Island Since 2011
VP-Team Leader Commercial Real Estate Group at
North Fork Bank
VP-Team Leader Private Bank at NatWest USA
EVP, Senior Commercial Banking Officer at The
First of Long Island Since 1996
VP at Ensign Bank FSB, Head of Consumer Lending
(NY, NJ & FL)
VP Oxford Resources Corp, Head of Credit Corp
Division. a National Retail Sales-Finance Company
EVP, Senior Retail Lending Officer at The First of
Long Island Since 1991
36
|
|
Experienced Executive Staff
Executive
Donald L. Manfredonia
Richard P. Perro
Title
EVP, Senior Lending
Officer and Deputy CRA
Officer – Lending
EVP, Branch
Administration & Deputy
Security Officer
Background
EVP at The First of Long Island Since 1982
Credit Card Fraud Supervisor Chemical Bank
VP-Branch Manager NatWest Bank and North Fork
Bank
EVP, Branch Administration at The First of Long
Island Since 2002
37