MELVILLE, N.Y. – The First of Long Island Corporation (NASDAQ:FLIC) disclosed today that a customer reported unauthorized wire transfers in July 2024, leading to a potential fraud claim against the company's subsidiary, The First National Bank of Long Island. The bank, after conducting an investigation with a digital forensics firm, found no evidence of unauthorized network activity and stands by its online wire transfer procedures.
The suspicious activity, which originated from the customer's compromised banking information, resulted in a net loss of approximately $11.1 million after the return of some funds. The affected customer has formally demanded the bank restore the net amount, a request the bank intends to contest vigorously.
Despite the incident, the bank has expressed confidence that the situation is isolated, with no other customers reportedly affected. Furthermore, the bank's operations continue uninterrupted, maintaining full service to its clientele.
The First of Long Island Corporation has not recognized any probable loss in connection to this incident and therefore has not set aside any financial provisions for a potential loss. The information provided is based on a recent SEC filing and has not been filed for purposes of Section 18 of the Exchange Act, nor is it incorporated by reference in any other SEC filing.
In other recent news, The First of Long Island Corporation reported a robust Q2 performance for 2024, with growth in key metrics such as return on assets, equity, deposits, loans, and non-interest income. Despite a decrease in net interest income compared to the same quarter last year, the bank expects to maintain positive trends, particularly with anticipated rate cuts by the Fed. The company also emphasized its strong credit quality and capital position, with a leverage ratio of 9.9%.
The bank has also opened a new branch and is considering further geographic expansion. However, an increase in non-performing loans was noted, primarily attributed to one specific loan. Despite this, the bank continues to see stronger loan originations, particularly in commercial lending.
These recent developments indicate the bank's commitment to expansion and shareholder value. The company has $13 million remaining under the buyback program, which they may consider using in the future. The potential impact of future Fed rate cuts on the net interest margin was also discussed, highlighting the company's strategic focus on careful credit management.
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