First of Long Island earnings higher

Fast-growing First of Long Island Corp. of Glen Head reported increased net income for the final quarter and all of last year on higher net interest income and a reduction in income tax expense.

The operator of the First National Bank of Long Island said net income for the fourth quarter was $4.7 million, or 53 cents a share, up from $4.1 million, or 46 cents a share, for the same quarter a year earlier.

First of Long Island, which calls itself Long Island's largest independent commercial bank, has more than $2 billion in assets and 35 branches -- three in Manhattan and the rest on Long Island.

The quarterly per-share figure missed a 60 cents a share average of analysts' estimates. President and Chief Executive Michael Vittorio attributed the miss to a higher allowance for loan losses as a percentage of total loans -- which rose from 1.55 percent at the end of 2010 to 1.68 percent at Dec. 31.

First of Long Island's stock lost 68 cents on the Nasdaq Stock Exchange yesterday, closing at $27.30. The bank said its loan portfolio remains "excellent," with problem loans amounting to only $4.0 million, or four-tenths of one percent of total loans at December 31, 2011.

The bank warned, however, that the environment remains challenging. "Interest rates are currently very low and there is significant price competition for loans," it said. It added declines in commercial and residential real estate values threaten the ability of loan holders to make payments.

The bank said it benefited in the quarter and year from higher net interest income -- the difference between the interest a bank earns on assets like loans and investments and what it pays out to depositors. For all of last year, net income was $19.5 million, or $2.20 a share, up from $18.4 million, or $2.30 per share in 2010. Income tax expense fell $427,000, mostly because of an increase in tax-exempt income on municipal securities.

Vittorio said the bank opened six new branches in 2010 and 2011, and expects to begin construction on its 36th branch in Lindenhurst in March.