The First of Long Island Corporation (FLIC): BCG Matrix [Dec-2025 Updated]

You're looking at The First of Long Island Corporation's final strategic map, a clear-eyed Boston Consulting Group assessment just before it joined ConnectOne Bancorp, Inc. in mid-2025. We've mapped where the real value was: relationship-based C&I lending and $122 million in repricing Commercial Real Estate mortgages were the Stars, while the core Long Island deposit base and $1.9 billion Commercial Mortgage Portfolio acted as reliable Cash Cows. Still, the low 1.91% Net Interest Margin and a sharp jump in past due loans to $7.5 million flagged serious Dogs and Question Marks, all overshadowed by the high-stakes integration risk of the pending merger. Dive in to see the precise positioning of every segment before the new entity took shape.

Background of The First of Long Island Corporation (FLIC)

You're looking at the final chapter of The First of Long Island Corporation (FLIC), which operated as the holding company for The First National Bank of Long Island. This institution's roots go deep, with the core bank established in 1927 in Glen Head, New York, before the parent corporation was formally set up on February 7, 1984. Its primary mission centered on providing financial services across Long Island and the New York City area, focusing on small and medium market businesses, professional firms, not-for-profits, municipalities, and consumers.

The operational framework of The First of Long Island Corporation was that of a straightforward community bank. Its revenue streams came mainly from interest earned on loans and securities, supplemented by noninterest income from service charges and fees. Key offerings included business and personal checking, various deposit accounts like money market and IRAs, and a wide array of lending products such as commercial, residential mortgage, Small Business Administration, and construction loans.

As of the final reported period for the independent entity, the first quarter of 2025 (ending March 31, 2025), the company reported a net income of $3.8 million, translating to diluted earnings per share (EPS) of $0.17. This represented a year-over-year decline from the $4.4 million net income and $0.20 EPS seen in the first quarter of 2024. The bank's efficiency metrics showed a return on average assets (ROA) of 0.37% and a return on average equity (ROE) of 3.98%.

Despite the net income dip, some core metrics showed improvement heading into the merger. Net interest income actually rose by 3.6% or $661,000 year-over-year, and the net interest margin (NIM) expanded to 1.91% from 1.83% in the linked quarter. Capital strength remained a focus, with the leverage ratio holding steady at approximately 10.29% as of March 31, 2025. The book value per share ticked up to $16.91 from $16.77 at the end of 2024.

The most significant development defining The First of Long Island Corporation in late 2025 was its acquisition. The company completed its merger with ConnectOne Bancorp, Inc. (CNOB) around June 2, 2025, which resulted in the delisting of FLIC stock. This transaction created a much larger regional presence, combining total assets to approximately $14 billion, a substantial increase from FLIC's year-end 2024 total assets of $4.1 billion. The final reported dividend for FLIC shareholders was $0.21 per share for the quarter.

The First of Long Island Corporation (FLIC) - BCG Matrix: Stars

You're looking at the business units within The First of Long Island Corporation (FLIC) that command a high market share in markets still growing rapidly, which is the classic definition of a Star in the Boston Consulting Group (BCG) Matrix. These areas require significant investment to maintain that leadership position, meaning cash flow in often equals cash flow out, but they are the future Cash Cows if market growth moderates.

For FLIC, as of early 2025, the focus on specific lending segments and strategic asset repricing points to these areas as the Stars, driving future profitability, especially as the bank navigated its pending merger with ConnectOne Bancorp, Inc., which was expected to close mid-2025.

Commercial Real Estate (CRE) Repricing

One key area signaling future yield growth, characteristic of a Star needing investment to capture market share, involved the loan portfolio repricing. Specifically, there was a reported $122 million in Commercial Real Estate (CRE) mortgages set to reprice at higher rates. This action is designed to capture the current interest rate environment, boosting future Net Interest Income (NII) as these assets mature or reprice into higher-yielding paper.

Relationship-based Commercial and Industrial (C&I) Lending

The focus on relationship-based Commercial and Industrial (C&I) lending represents a high-yield segment for the combined bank entity. At year-end 2024, the total loan portfolio stood at $3.222 billion, with Commercial loans making up a significant portion at $1.963 billion. This segment is where FLIC likely sought to maintain high market share through deep client relationships, justifying the cash needed for relationship management and origination support.

Core Profitability Indicator: Net Interest Margin (NIM)

The trend in core profitability strongly supports the Star designation for the underlying business model. You saw a sequential Net Interest Margin (NIM) expansion of 8 basis points in the first quarter of 2025 compared to the linked fourth quarter of 2024. This expansion, signaling a positive trend in core profitability, is crucial for a Star transitioning to a Cash Cow. For context, the NIM for Q1 2025 was 1.91%.

The following table summarizes key financial metrics around the time of this analysis:

Strategic Market Share Expansion

To maintain high market share in a growing Long Island market, The First of Long Island Corporation was actively expanding its physical presence. This is a direct investment to secure future dominance, typical for a Star. The bank operated 40 branches as of June 30, 2024. A specific strategic move involved the opening of the Southold location in October 2024, which was noted as bringing the total branch count to forty-one across its operating area.

You can see the focus on growth and investment in these key areas:

• Investment in relationship-based C&I lending to secure high-yield assets.
• Repricing of $122 million in CRE mortgages for future yield capture.
• Opening new physical locations, like the Southold branch in October 2024.
• Achieving 8 basis points sequential NIM expansion in Q1 2025.

These Stars, if they sustain success as the high-growth market matures, are positioned to become the robust Cash Cows for the combined entity post-merger.

The First of Long Island Corporation (FLIC) - BCG Matrix: Cash Cows

Cash Cows represent the bedrock of The First of Long Island Corporation's financial stability, characterized by high market share in a mature, localized market. These units generate more cash than they consume, funding other strategic areas of the business. For The First of Long Island Corporation, this quadrant is dominated by its core deposit franchise and established lending segments.

Core Long Island Deposit Franchise: A stable, low-cost funding base with nearly 92% of deposits concentrated in Nassau and Suffolk counties. This geographic concentration in a mature market signifies a deep, established market share, which is the hallmark of a Cash Cow. As of the first quarter of 2025, total deposits stood at $3.30 billion. The high concentration means these deposits are relatively 'sticky' and less susceptible to rapid, costly shifts in funding strategy, providing a low-cost foundation for operations. You see this stability reflected in the consistent capital management.

The primary components defining this Cash Cow status include:

• Core deposit concentration of nearly 92% in Nassau and Suffolk counties.
• Total Deposits reported at $3.30 billion in Q1 2025.
• Low growth market implies minimal need for aggressive promotional spending.

Commercial Mortgage Portfolio: Providing consistent, mature interest income. This segment is a key cash generator, representing a mature asset class where The First of Long Island Corporation has achieved a leading position. The portfolio size is reported as $1.9 billion in Q1 2025, making it the largest loan segment and a reliable source of interest revenue in a stable market environment. The focus here is on maintaining asset quality and optimizing servicing, rather than aggressive expansion.

Stable Quarterly Dividend: A classic sign of a mature business generating reliable free cash flow. The commitment to shareholders through consistent payouts signals confidence in sustained, predictable earnings generation. The First of Long Island Corporation maintained its quarterly cash dividend at $0.21 per share for the first quarter of 2025. This steady payout is a direct result of the reliable cash flows harvested from these mature business units.

The financial strength underpinning this 'milking' strategy is evident in the balance sheet metrics. The First of Long Island Corporation is well-capitalized, which allows it to support the franchise efficiently without needing significant external capital infusion.

Here's a quick look at the capital and efficiency metrics supporting the Cash Cow designation as of March 31, 2025:

Strong Capital Position: Leverage ratio of approximately 10.29% in Q1 2025. This ratio confirms the operational efficiency and low-risk profile associated with Cash Cows. Investments here are focused on infrastructure to drive efficiency, such as system conversions or consolidation expenses noted in Q1 2025, rather than high-growth marketing campaigns. The goal is to 'milk' the gains passively, ensuring the current level of productivity is maintained or slightly improved through cost control. For you, this means these assets provide the necessary stability to fund riskier Question Marks or Stars in the portfolio.

The First of Long Island Corporation (FLIC) - BCG Matrix: Dogs

Dogs, are units or products with a low market share and low growth rates. They frequently break even, neither earning nor consuming much cash. Dogs are generally considered cash traps because businesses have money tied up in them, even though they bring back almost nothing in return. These business units are prime candidates for divestiture.

The First of Long Island Corporation's operations, viewed through the lens of the BCG Matrix, show characteristics aligning with the Dogs quadrant, primarily due to persistent margin pressure and high operating costs relative to profitability.

Low Net Interest Margin (NIM)

The profitability metric for core lending and deposit activities shows significant underperformance compared to industry benchmarks. The Net Interest Margin (NIM) for the first quarter of 2025 stood at 1.91%. This figure is substantially below the typical range of 3.5% to 4.5% often seen for community banks, signaling low inherent profitability in the current asset/liability structure. Management noted that the NIM bottomed out in the first quarter of 2024 and began a recovery, with an 8 basis point lift sequentially in Q1 2025, but the absolute level remains low.

Declining Net Income

The trend in bottom-line results confirms the low-growth, low-return nature of these business segments. Net Income for the first quarter of 2025 was $3.8 million (or $3.756 million in some reports). This represents a year-over-year decline of $679,000 from the $4.4 million reported in the first quarter of 2024. This decline signals a mature market where revenue growth is insufficient to offset cost pressures. The Return on Average Assets (ROA) for Q1 2025 was only 0.37%, and the Return on Average Equity (ROE) was 3.98%.

Here's the quick math on the year-over-year net income change:

Residential Mortgage Portfolio

The Residential Mortgage Portfolio represents a substantial portion of the asset base, yet it functions as a low-margin area. The size of this segment is reported at $1.1 billion. [cite: User Provided Outline] This product line is often commoditized in the competitive Long Island and NYC markets, meaning pricing power is minimal. The overall loan portfolio for The First of Long Island Corporation stood at approximately $3.3 billion as of June 30, 2024. The low NIM suggests that the returns generated by this large portfolio are insufficient to drive strong overall corporate growth.

High Noninterest Expense

Operating costs have been a significant drag, especially when factoring in one-time restructuring charges. For the full year 2024, noninterest expense increased by $4.1 million, or 6.4%, compared to the prior year. This increase was directly attributable to specific, non-recurring events:

• Branch consolidation expenses: $1.9 million.
• Merger expenses: $1.2 million.

Even excluding these items, the underlying noninterest expense still increased by $1.0 million, or 1.6%, in 2024. While Q1 2025 saw a sequential decrease in noninterest expense of $1.5 million compared to Q4 2024, largely because the $1.4 million branch consolidation costs did not recur, the year-over-year comparison for Q1 2025 showed an increase of $922,000 in noninterest expense compared to Q1 2024. These elevated expenses, combined with low NIM, compress the efficiency ratio, making these units cash traps.

The First of Long Island Corporation (FLIC) - BCG Matrix: Question Marks

These business units operate in high-growth markets but currently hold a low market share, consuming cash while offering limited immediate returns. For The First of Long Island Corporation (FLIC), these areas require heavy investment to capture market share quickly or risk becoming Dogs.

New York City Borough Expansion

Expansion into high-competition, high-growth areas like Queens and Manhattan represents a Question Mark. Prior to the merger, The First National Bank of Long Island operated 40 branches in the New York Metropolitan area, with approximately 92% of its deposits concentrated in Nassau or Suffolk Counties. This indicates a relatively low existing market share in the broader, more competitive NYC boroughs.

The market context for this expansion is dynamic, with office market values in areas like Downtown Brooklyn and Long Island City reaching double digits in growth for Fiscal Year 2025 compared to Fiscal Year 2020. The strategic pivot via merger aims to immediately address the low market share challenge by leveraging scale.

Key geographic and scale metrics:

• Prior FLIC branch count in NY Metro area: 40
• Prior deposit concentration in Nassau/Suffolk Counties: 92%
• Combined entity post-merger branch network: 60+ branches spanning New York, New Jersey, and Southeast Florida
• Combined entity rank on Long Island (by deposit market share): Top 5 community bank

Noninterest Income Segments

Segments contributing to noninterest income are characterized by high potential growth but currently represent a small portion of the overall revenue base, fitting the low market share profile of a Question Mark. For instance, the segment is analyzed as contributing only 13% of Q1 2025 revenue from sources like fees and Bank Owned Life Insurance (BOLI) accretion.

The actual year-over-year performance in Q1 2025 showed a contraction in this area compared to the prior year, suggesting the low market share is not yet translating into strong returns:

Increase in Past Due Loans

A sharp deterioration in credit quality metrics, specifically past due loans, introduces significant uncertainty, demanding immediate investment or divestment consideration. This metric shows a massive sequential jump, indicating a potential problem area that needs rapid resolution to avoid becoming a Dog.

The data clearly illustrates this sudden stress:

Past Due Loans as of March 31, 2025 stood at $7.5 million, a stark contrast to the $270,000 reported at the end of December 2024. This represents an increase of over 2,600% sequentially.

Integration Risk

The pending merger with ConnectOne Bancorp, Inc. was a high-risk, high-reward strategic pivot for the entire franchise, embodying the Question Mark strategy of heavy investment for future Star potential. The transaction was announced to close on or about June 1, 2025, following FDIC approval received around May 6, 2025.

The reward is significant scale, which is the intended outcome of investing in this high-growth, high-risk maneuver. The combined entity post-merger is projected to have:

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

The integration itself carries inherent risk, as noninterest expense for Q1 2025 increased by $922,000, or 5.7%, compared to Q1 2024, mainly attributable to current year expenses related to the pending merger.