This Day On The Street
Continue to site
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

A 'First' in Banking: Under the Radar

NEW YORK ( TheStreet) -- If you're looking to invest in a company that has a slick Web site, flashy logo or cool name, First of Long Island (FLIC - Get Report) probably isn't for you. What the bank lacks in flash, it makes up for in solidity and growth.

As banks like Citigroup (C - Get Report), Bank of America (BAC - Get Report) and Wells Fargo (WFC - Get Report) shook under the weight of terrible risk-control decisions and massive leverage, leading to the need for government intervention, Glen Head, New York-based First of Long Island was plugging away, earning comfortable profits in the traditional manner that a bank does: borrowing at a low rate and lending out at a higher one.

First of Long Island's stock has climbed 37% over the past year and currently yields almost 3% more in dividends. It outperforms the S&P 500 Index by 18%. While other financial stocks have shot through the roof in 2009, First of Long Island has had a much slower burn due to the fact that it didn't suffer a massive loss at the end of 2008. It's much better suited for investors who may be more risk-averse than the big-name financials.

With annual revenue growth of 12.4% in the second quarter and analysts predicting a pace of 5.3% for the third quarter, the bank's outlook seems bright. Earnings never cratered for First of Long Island since the bank didn't place heavy bets on derivatives or toxic mortgage assets.

Earnings are expected to increase in the third quarter by more than 6%, far surpassing the estimated 33% decrease for the S&P 500. A quick glance at the balance sheet may lead some to think that the bank has high leverage. However, compared with similar banks, the numbers are in line with the averages, and, considering the composition of assets, the bank is far safer than big banks that have bet on high-yielding, though risky, securities rather than government-backed securities.
1 of 2

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Real Money

More than 30 investing pros with skin in the game give you actionable insight and investment ideas.

Product Features:
  • Access to Jim Cramer's daily blog
  • Intraday commentary and news
  • Real-time trading forums
Only $49.95
14-Days Free
14-Days Free
BAC $14.04 -0.67%
C $44.22 -0.99%
FLIC $28.89 -2.10%
WFC $48.95 0.02%
AAPL $93.21 -0.44%


Chart of I:DJI
DOW 17,660.71 +9.45 0.05%
S&P 500 2,050.63 -0.49 -0.02%
NASDAQ 4,717.0940 -8.5450 -0.18%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs