First of Long Island Corp. on Monday reported higher profits for the year’s second quarter, compared with a year earlier. It cited as a factor lower set asides for bad loans.
The Glen Head-based parent of the 35-branch First National Bank of Long Island said it earned $5.4 million or 60 cents a share in the quarter, up 15.6 percent and 13.2 percent, respectively.
The bank said it made more loans so that net interest income increased but that low interest rates reduced its net interest margin, the difference between the interest a bank earns on its assets such as loans and securities, and the interest it pays out to depositors.
“Most of the growth in loans occurred in residential and commercial mortgage loans,” First of Long Island said, “ with a smaller amount of growth in commercial and industrial loans.”
The bank also attributed its improved earnings to a decline in its provision for loan losses, from just over $1 million in the second quarter of last year to $623,000 in the quarter this year.
First of Long Island said it plans to open another full service branch in Lindenhurst later this year.
The bank had total assets of $2 billion as of June 30.