The First of Long Island
Annual Report 2014

Plain-text annual report

A Commitment to Growth 2014 Annual Report ®Our Commitment Business of the Corporation The First National Bank of Long Island is committed to delivering The First of Long Island Corporation (“Corporation”) is a one-bank holding high quality, personalized service throughout the communities we serve. company organized under the laws of the State of New York. Its primary business is the operation of its sole subsidiary, The First National Bank of Long Island (“Bank”). Business of the Corporation The Bank was organized in 1927 under national banking laws and became the sole subsidiary of the Corporation under a plan of reorganization effected The First of Long Island Corporation (“Corporation”) is a one-bank holding company organized under the laws of the State of New York. Its primary business is the operation of its sole subsidiary, The First National Bank of Long Island (“Bank”). April 30, 1984. The Bank is a full service commercial bank which provides a broad range of financial services to individual, professional, corporate, institutional and government customers through its branch system on Long Island and The Bank was organized in 1927 under national banking laws and became the sole subsidiary of the Corporation under a plan of reorganization effected April 30, 1984. in Manhattan. The Corporation is subject to regulation and supervision of the Federal Reserve Board and the Securities and Exchange Commission. The Bank The Bank is a full service commercial bank which provides a broad range of financial services to individual, professional, corporate, institutional and government customers through its thirty-seven branches on Long Island and in Manhattan. is subject to the regulation and supervision of the Federal Reserve Board, the Comptroller of the Currency and the Federal Deposit Insurance Corporation, which also insures its deposits. The Comptroller of the supervising the Bank. Currency is the primary banking agency responsible for regulating and The Corporation is subject to the regulation and supervision of the Federal Reserve Board and the Securities and Exchange Commission. The Bank is subject to the regulation and supervision of the Federal Reserve Board, the Comptroller of the Currency and the Federal Deposit Insurance Corporation which also insures its deposits. The Comptroller of the Currency is the primary banking agency responsible for regulating and supervising the Bank. ® D ear Shareholders, I n 2014, our Bank had an outstanding year in a challenging environment. Profitability was driven by controlled growth in both Total Loans and Total Deposits. Net Income increased by 8% to $23 million. Earnings Per Share (EPS) increased 6.5% to $1.65 and Cash Dividends Per Share increased 5.9% to $.72. Our dividend increase is indicative of the confidence we have in our ability to continue to grow the Corporation’s earnings in a measured and disciplined way. I am pleased to report Total Assets grew $322 million or 13.4%. Within this figure, earning assets grew $313 million or 13.5%, driving net interest income up by $4.4 million or 7.1%. This growth, along with an increase in noninterest income of $356,000 or 5.1%, enhanced profits since increases in operating expenses, the provision for loan losses, and income tax expense were significantly less. Our bottom line result was a $1.7 million increase in earnings year-over-year. Major factors driving profitability were loan growth and the maintenance of pristine asset quality. We continue to adhere to prudent underwriting standards. During the year, Average Loans Outstanding grew 23.2% from $1.3 billion to $1.6 billion. By the end of the fiscal year, the spot balance of our Total Loans exceeded $1.8 billion. The majority of our growth was relatively balanced between Commercial Real Estate products and Residential Mortgages. Our ability to grow loans was attributable to targeted solicitation efforts, pricing, key product advertising, broker relationships, the growth of our branch system, and an increasing awareness of the Bank’s brand and reputation. Over the last decade, our credit quality has been among the very best in the industry, even during the years of the Great Recession. The same executive management team that managed then is still managing today. I am happy to report asset quality remains excellent. Nonaccrual loans amounted to $1.7 million or .09% of Total Loans Outstanding. That’s great performance. We take pride in the credit quality of our loans, but we do not have the luxury to be complacent about what we have accomplished to date. When it comes to credit quality there is no resting on one’s laurels. I can assure you the management team remains vigilant with regard to our responsibility to maintain strong asset quality. During the year, our deposits continued to grow at a steady pace. Year-over-year, balances grew $203 million or 11.4%. This growth was driven by lending, expanding our distribution system, enhancing our business network, tactical marketing initiatives, focused calls on specific prospects, deepening existing relationships, the introduction of new products, and our Municipal Deposit initiative. 2014 Annual Report 1 Particularly noteworthy was the growth in our Demand Deposits of $57 million or 9.5%. We believe growth in this strategic product category is related to our success in building additional share with our key target markets—small businesses; middle market companies; professionals, i.e., doctors, lawyers, dentists, CPAs; and targeted municipal deposit relationships. Growth in these market segments enhances franchise value and thereby long-term shareholder value. This is why we continue to build our distribution system in arguably one of the very best retail banking markets in the country. We are proud to note that our ratio of Demand Deposits to Total Deposits remains attractive at 33%. This ratio has not deteriorated with our growth. Loan growth, credit quality and stable core deposit growth have been major factors in the creation of wealth for our investors. We believe the value of your investment has considerable potential to continue to grow as we remain focused on executing our strategic plan. Wealth creation is evident as you look at the growth of the Corporation’s Book Value Per Share over a period of time and more specifically in 2014. Last year our Book Value grew 11.6% to $16.80. We are proud of this performance, but realize we must continue to perform over the long term in a similar manner to sustain your confidence in our Board and management team. Being the financial stewards of your investment, we take this responsibility very seriously. We realize we can never let our guard down in any one year or, more importantly, over an extended period of time. In 2014, we added three more branches in desirable markets that will help us continue to grow and pick up additional share with our targeted market segments. We are well aware of the risks associated with putting capital into bricks and mortar. I would point out that our Expense to Revenue Ratio of 51.8% demonstrates the thought we put into our branch expansion strategy and the planning associated with the growth of our operating expenses. This very strong ratio has been maintained during my twelve-year tenure with the Bank while building 21 branches, a state-of-the-art Disaster Recovery Center and a new Loan Processing Center. I anticipate the Bank will build at least three more branches in 2015. This past year, we continued to expand our technology offerings to improve both the customer experience and operational efficiency. We upgraded our online banking platform and in the very near future will be rolling out mobile banking and instant issue debit cards. We are keenly aware of the fact that the use of technology brings with it a variety of risks including compromising our customers’ sensitive personal information. To enhance our controls in this area, during 2014 we created a dedicated information security department that reports directly to our Chief Risk Officer. In my opinion, the best opportunities lie ahead. We have a talented and dedicated team that lives within the communities we serve. We truly know our customers and take pride in meeting their needs. We realize, over the long term, the only sustainable competitive advantage we have is the quality of the service and personalized attention we deliver to our customer base. This culture is fostered by our executive management team and embraced by all of our employees. It is essential that we maintain this cultural identity as we continue to flourish in the Long Island and New York Metropolitan markets. I believe our slogan tells you what we are all about. The First National Bank of Long Island is the Bank “Where Everyone Knows Your Name®.” Michael N. Vittorio President and Chief Executive Officer 2 The First of Long Island Corporation 2014 Annual Report 3 $903$986$1,147$1,478$828$380$449$526$658$1,711$2,022$2,108$2,400$1,675$944$954$1,069$1,262$18.4$19.5$20.4$21.3$13.5$12.3$11.2$11.5$13.0$1,293$1,503$1,633$1,782$1,278$788$825$869$900Net Income (in millions)Total Assets (in millions)Total Loans(in millions)Total Deposits(in millions)CAGR 6.6%CAGR 18.1%CAGR 9.9%CAGR 11.5%$23.0$1,805$1,985$2,721Financial OverviewP artners in Growth Mr. Lloyd Straus President and Chief Operating Officer North American Partners in Anesthesia (NAPA) “ The First National Bank of Long Island is unique in its ability to support our rapidly growing business, combined with its ability to provide personalized service to our physician partners. Since 2003, they have been true partners that take the time to understand our business and support NAPA’s growth strategy.” 4 The First of Long Island Corporation P artners in Growth “ Personalized service is what differentiates The First National Bank of Long Island from other banks. It is simply outstanding. You can always reach the Branch Manager on the phone or receive an immediate e-mail response to any question. There are almost never any real lines when you walk into a branch and you can call ahead for anything special you may need so that it is ready when you arrive. We have access to big banking services with an incredible mom and pop approach to customer service. Thanks to their assistance with securing a competitive large mortgage, they have helped me to grow my moving and storage business.” Mr. John B. Beyer Founder Men On The Move Moving and Self-Storage Companies 2014 Annual Report 5 Branch Expansion Oceanside | 2933 Long Beach Road In July 2014, The First National Bank of Long Island opened a full service branch on the corner of Long Beach Road in Oceanside, New York. It is beautifully decorated with crown moldings and a fireplace and is equipped with a 24-hour ATM. Total deposit balances were $24.1 million at year end 2014. “ The Oceanside community, especially the small businesses, are very happy to have us in their neighborhood. Our products and services, such as Cash Management and Lending, have helped owners to increase sales and grow their business. Our branch staff provides them with the personalized service they deserve from their financial institution. This will remain an ongoing commitment for us.” Debbie Hirschberg, Vice President and Branch Manager 6 The First of Long Island Corporation Manhasset | 572 Plandome Road In October 2014, The First National Bank of Long Island opened a full service branch on Plandome Road in Manhasset, New York. The branch has been very successful at providing depository and lending services to residents and small businesses within the community. It is equipped with a fireplace and a 24-hour ATM. Total deposit balances were $13.6 million at year end 2014. Greenlawn | 76 Broadway “At The First National Bank of Long Island, we fulfill a need for consumers and business owners who prefer a Banker that can provide them with the personalized service they deserve. Helping many of the businesses grow in our community is one of our priorities. They are a vital part of the success within the community. It is our mission to assist and partner with them to become an extension of their business.” Doreen Severin, Vice President and Branch Manager “ The Greenlawn community has welcomed us graciously as their new bank in town. Existing customers are pleased with our new branch location which provides them with more convenience and personalized service. We will continue to offer them the core values of banking with a small town vibe.” Laura David, Assistant Vice President and Branch Manager In November 2014, The First National Bank of Long Island opened a full service branch on Broadway in Greenlawn, New York. It is also beautifully decorated with crown moldings and a fireplace and is equipped with a 24-hour ATM. Total deposit balances were $14.7 million as of February 13, 2015. 2014 Annual Report 7 42 43 38 3112 15 36 13 22 44 19 27 11 40 35 30 33 2 21 5 18 29 28 28 14 34 17 8 41 25 10 9 39 16 6 4 37 32 26 3 23 24 1 20 7 Long Island 1 Babylon 42 Deer Park Avenue Babylon, NY 11702 (631) 422-1700 2 Bayville 282 Bayville Avenue Bayville, NY 11709 (516) 628-1288 3 Bellmore 408 Bedford Avenue Bellmore, NY 11710 (516) 679-6200 4 Bohemia 30 Orville Drive Bohemia, NY 11716 (631) 218-2500 5 ColdSpringHarbor 147 Main Street Cold Spring Harbor, NY 11724 (631) 367-3600 6 DeerPark 60 East Industry Court Deer Park, NY 11729 (631) 243-2600 7 COMING SOON! EastIslip 151 West Main Street East Islip, NY 11730 8 EastMeadow 1975 Hempstead Turnpike East Meadow, NY 11554 (516) 357-7200 9 Farmingdale 22 Allen Boulevard Farmingdale, NY 11735 (631) 753-8888 10 Farmingdale 2091 New Highway Suite 100 Farmingdale, NY 11735 (631) 454-2022 11 GardenCity 1050 Franklin Avenue Suite 100 Garden City, NY 11530 (516) 742-6262 12 GlenHead 10 Glen Head Road Glen Head, NY 11545 (516) 674-6650 8 The First of Long Island Corporation 13 GreatNeck 536 Northern Boulevard Great Neck, NY 11021 (516) 482-6666 14 Greenlawn 76 Broadway Greenlawn, NY 11740 (631) 754-0660 15 Greenvale 7 Glen Cove Road Greenvale, NY 11548 (516) 621-8811 16 Hauppauge 330 Motor Parkway Suite 100 Hauppauge, NY 11788 (631) 952-2900 17 Hicksville 106 Old Country Road Hicksville, NY 11801 (516) 932-7150 18 Huntington 253 New York Avenue Huntington, NY 11743 (631) 427-4143 19 LakeSuccess 3000 Marcus Avenue Lake Success, NY 11042 (516) 775-3133 20 Lindenhurst 1 East Montauk Highway Lindenhurst, NY 11757 (631) 956-3800 21 LocustValley 108 Forest Avenue Suite 2 Locust Valley, NY 11560 (516) 671-2299 22 Manhasset 572 Plandome Road Manhasset, NY 11030 (516) 365-5010 23 Massapequa 574 Broadway Massapequa, NY 11758 (516) 795-0100 24 MassapequaPark 1049 Park Boulevard Massapequa Park, NY 11762 (516) 795-2265 42 43 44 2 21 38 3112 5 18 29 28 28 14 17 8 41 25 10 9 39 16 6 26 3 23 24 1 20 7 4 37 32 13 22 15 36 19 27 11 40 35 30 33 34 Branch Locations 25 COMING SOON! Melville 555 Broad Hollow Road Suite 001 Melville, NY 11747 26 Merrick 1810 Merrick Avenue Merrick, NY 11566 (516) 771-6000 27 NewHydePark 243 Jericho Turnpike New Hyde Park, NY 11040 (516) 328-3100 28 Northport 711 Fort Salonga Road Northport, NY 11768 (631) 261-4000 29 NorthportVillage 105 Main Street Northport, NY 11768 (631) 261-0331 30 Oceanside 2933 Long Beach Road Oceanside, NY 11572 (516) 536-3989 31 OldBrookville 209 Glen Head Road Old Brookville, NY 11545 (516) 759-9002 32 COMING SOON! Patchogue 392 East Main Street Patchogue, NY 11772 33 PointLookout 26A Lido Boulevard P.O. Box 173 Point Lookout, NY 11569 (516) 431-3144 34 PortJeffersonStation Davis Professional Park 5225 Nesconset Highway Building 4, Suite 21 Port Jefferson Station, NY 11776 (631) 928-4411 35 RockvilleCentre 310 Merrick Road Rockville Centre, NY 11570 (516) 763-5533 36 RoslynHeights 130 Mineola Avenue Roslyn Heights, NY 11577 (516) 621-1900 37 Sayville 215 West Main Street Sayville, NY 11782 (631) 472-7000 38 SeaCliff 299 Sea Cliff Avenue Sea Cliff, NY 11579 (516) 671-7868 39 Smithtown 285 Middle Country Road Suite 104 Smithtown, NY 11787 (631) 265-0200 40 ValleyStream 127 East Merrick Road Valley Stream, NY 11580 (516) 825-0202 41 Woodbury 800 Woodbury Road Suite M Woodbury, NY 11797 (516) 364-3434 M anhattan 42 232 Madison Avenue New York, NY 10016 (212) 213-8111 43 225 Broadway Suite 703 New York, NY 10007 (212) 693-1515 Queens 44 COMING SOON! 2014 Annual Report 9 CommunityService Volunteering is a key component of The First National Bank of Long Island’s corporate culture. In 2011, the Bank established a formal Community Service Committee to organize their community service efforts. The Bank’s financial success and its growing branch network give employees the opportunity to participate in local community service efforts. In 2014, the Bank supported many worthy organizations such as the Interfaith Nutrition Network (The INN), Habitat for Humanity, the Muscular Dystrophy Association, the American Cancer Society and Toys for Tots. “ As Chairperson of The Community Service Committee, I see firsthand how inspiring our employees find their volunteer experiences. We are all lucky to work for a company that encourages these kinds of activities as part of its corporate culture. It forms camaraderie amongst the employees and gives them a sense of accomplishment and gratitude.” Toni Valente, Branch Market Manager and Chairperson of The Community Service Committee 10 The First of Long Island Corporation Customer Service As the Bank “Where Everyone Knows Your Name®,” our customer service philosophy is to provide customers with quality, personalized service. As the Bank continues to grow and expand, it will remain a top priority for us to maintain our particular service culture. We will remain vigilant regarding our brand reputation and our responsibility to clients. By doing this, we can differentiate ourselves from our competitors and satisfy the banking needs of our customers. Huntington Branch Greenlawn Branch Manhasset Branch “ Our employees really care about customers, their families and their business. We strive to show this every day, to every customer and this genuine concern translates into superior customer service. Our commitment to excellent customer service starts at the top with our President & CEO, Michael Vittorio, and includes every bank employee whether they are on the front line, having face-to-face client interactions or are ‘behind the scenes’ supporting operations. Maintaining our particular service culture as the Bank ‘Where Everyone Knows Your Name®’ is not just a slogan for us, it is our mission that every bank employee works hard to fulfill.” Colleen De Stefano, Vice President and Branch Market Manager 2014 Annual Report 11 Board of D irectors The First of Long Island Corporation Left to right (standing): Alexander L. Cover, Allen E. Busching, John T. Lane, Paul T. Canarick, Howard Thomas Hogan Jr., Esq., Michael N. Vittorio and Eric J. Tveter Left to right (seated): Milbrey Rennie Taylor, J. Douglas Maxwell Jr., Stephen V. Murphy and Walter C. Teagle III Allen E. Busching Retired Public Company Executive Paul T. Canarick President & Principal Paul Todd, Inc. (construction company) Alexander L. Cover Management Consultant Howard Thomas Hogan Jr., Esq. Director Hogan & Hogan (attorney at law) John T. Lane Retired Managing Director J.P. Morgan & Co. J. Douglas Maxwell Jr. Director Photon Migration Technologies Corp. (medical technology) Stephen V. Murphy President S.V. Murphy & Co., Inc. (investment banking) Milbrey Rennie Taylor Retired Executive Producer of CBS News Walter C. Teagle III Chairman President Teagle Management, Inc. (private investment firm) Chairman The Teagle Foundation, Inc. Managing General Partner Gulo Capital Partners L.P. (private investment partnership) Eric J. Tveter Chief Executive Officer Austria/Switzerland Region Liberty Global plc Michael N. Vittorio President and Chief Executive Officer ExecutiveStaff The First National Bank of Long Island Michael N. Vittorio President and Chief Executive Officer Sallyanne K. Ballweg Senior Executive Vice President Christopher Becker Executive Vice President and Chief Risk Officer Mark D. Curtis Executive Vice President, Chief Financial Officer and Cashier Paul J. Daley Executive Vice President and Senior Commercial Banking Officer Richard Kick Executive Vice President, Senior Operations Officer and Chief Security Officer Donald L. Manfredonia Executive Vice President, Senior Lending Officer and Deputy CRA Officer – Lending Richard P. Perro Executive Vice President, Branch Administration and Deputy Security Officer Left to right: Paul J. Daley, Christopher Becker, Richard P. Perro, Donald L. Manfredonia, Michael N. Vittorio, Sallyanne K. Ballweg, Mark D. Curtis and Richard Kick 12 The First of Long Island Corporation Selected Financial data S E L E C T E D F I N A N C I A L D A T A INCOME STATEMENT DATA: Interest Income …..................................................... Interest Expense …................................................... Net Interest Income .................................................. Provision for Loan Losses......................................... Net Income ................................................................ PER SHARE DATA: Basic Earnings........................................................... Diluted Earnings ....................................................... Cash Dividends Declared ......................................... Dividend Payout Ratio .............................................. Book Value ................................................................ Tangible Book Value ................................................ BALANCE SHEET DATA AT YEAR END: Total Assets .............................................................. Loans......................................................................... Allowance for Loan Losses....................................... Deposits …................................................................ Borrowed Funds........................................................ Stockholders' Equity ................................................. AVERAGE BALANCE SHEET DATA: Total Assets .............................................................. Loans …..................................................................... Allowance for Loan Losses …................................... Deposits …................................................................ Borrowed Funds........................................................ Stockholders' Equity ................................................. FINANCIAL RATIOS: 2014 2013 2011 2012 (dollars in thousands, except per share data) 2010 $81,976 15,048 66,928 3,189 23,014 $1.67 1.65 .72 43.64% $16.80 16.78 $2,721,494 1,804,819 23,221 1,985,025 481,486 233,303 $2,515,103 1,584,198 21,554 1,922,172 347,946 224,585 $74,851 12,364 62,487 2,997 21,300 $1.56 1.55 .68 43.87% $15.06 15.05 $2,399,892 1,477,937 20,848 1,782,128 395,463 206,556 $2,240,139 1,286,227 19,847 1,747,888 272,737 203,125 $76,229 16,127 60,102 3,628 20,393 $1.52 1.51 .64 42.38% $15.21 15.19 $2,108,290 1,147,384 18,624 1,633,076 248,634 205,370 $2,057,608 1,073,046 18,098 1,578,233 257,392 200,137 $76,312 17,567 58,745 4,061 19,457 $1.48 1.46 .60 41.10% $14.35 14.34 $2,022,407 985,859 16,572 1,502,868 309,727 189,347 $1,852,611 947,309 15,013 1,439,647 226,382 174,458 $72,403 16,774 55,629 3,973 18,392 $1.55 1.53 .56 36.60% $12.00 11.98 $1,711,023 902,959 14,014 1,292,938 253,590 156,694 $1,657,396 864,163 11,954 1,310,507 193,823 142,140 Return on Average Assets (ROA) …........................ Return on Average Stockholders' Equity (ROE) ...... Average Equity to Average Assets ........................... .92% 10.25% 8.93% .95% 10.49% 9.07% .99% 10.19% 9.73% 1.05% 11.15% 9.42% 1.11% 12.94% 8.58% STOCK PRICES AND CASH DIVIDENDS The Corporation’s common stock trades on the NASDAQ Capital Market tier of the NASDAQ Stock Market under the symbol “FLIC.” The following table sets forth high and low sales prices and dividends declared, by quarter, for the years ended December 31, STOCK PRICES 2014 and 2013. Quarter First Second Third Fourth High $ 28.58 28.15 26.77 29.28 2014 $ Low 24.47 22.48 22.22 22.32 Dividends Declared $ .17 .17 .19 .19 High $ 20.45 22.33 26.64 28.70 2013 $ Low 18.70 18.71 21.91 24.75 Dividends Declared $ .17 .17 .17 .17 2014 Annual Report 13 conSolidated Balance SheetS C O N S O L I D A T E D B A L A N C E S H E E T S December 31 (in thousands) 2014 2013 Assets: Cash and due from banks ........................................................................................................ Temporary investments............................................................................................................. Cash and cash equivalents .................................................................................................... $ 32,209 735 32,944 $ 35,034 463 35,497 Investment securities: Held-to-maturity, at amortized cost (fair value of $22,870 and $33,548) ........................... Available-for-sale, at fair value........................................................................................... Loan held-for-sale..................................................................................................................... Loans: Commercial and industrial.................................................................................................. Secured by real estate: Commercial mortgages................................................................................................ Residential mortgages.................................................................................................. Home equity lines......................................................................................................... Consumer .......................................................................................................................... Allowance for loan losses .................................................................................................. Restricted stock, at cost............................................................................................................ Bank premises and equipment, net........................................................................................... Bank-owned life insurance........................................................................................................ Pension plan assets, net........................................................................................................... Other assets.............................................................................................................................. Liabilities: Deposits: Checking............................................................................................................................ Savings, NOW and money market..................................................................................... Time, $100,000 and over .................................................................................................. Time, other ........................................................................................................................ Short-term borrowings............................................................................................................... Long-term debt.......................................................................................................................... Accrued expenses and other liabilities...................................................................................... Deferred income taxes payable................................................................................................. Commitments and Contingent Liabilities Stockholders' Equity: Common stock, par value $.10 per share: Authorized, 40,000,000 shares Issued and outstanding, 13,887,134 and 9,141,767 shares................................................. Surplus ..................................................................................................................................... Retained earnings .................................................................................................................... Accumulated other comprehensive income, net of tax ............................................................. 14 The First of Long Island Corporation 21,833 774,145 795,978 - 77,140 858,975 779,994 83,109 5,601 1,804,819 (23,221) 1,781,598 32,104 784,793 816,897 900 71,818 716,011 605,343 77,581 7,184 1,477,937 (20,848) 1,457,089 23,304 27,854 31,568 16,421 11,827 2,721,494 $ 19,869 24,463 14,185 18,532 12,460 2,399,892 $ $ 655,753 1,000,325 208,745 120,202 1,985,025 $ 599,114 917,974 173,379 91,661 1,782,128 136,486 345,000 13,247 8,433 2,488,191 110,463 285,000 13,141 2,604 2,193,336 1,389 51,009 170,120 222,518 10,785 233,303 2,721,494 $ 914 46,873 157,107 204,894 1,662 206,556 2,399,892 $ conSolidated StatementS oF income C O N S O L I D A T E D S T A T E M E N T S O F I N C O M E Year Ended December 31 (dollars in thousands, except per share data) 2014 2013 2012 Interest and dividend income: Loans................................................................................................................ Investment securities: Taxable......................................................................................................... Nontaxable .................................................................................................. Interest expense: Savings, NOW and money market deposits .................................................... Time deposits................................................................................................... Short-term borrowings...................................................................................... Long-term debt................................................................................................. Net interest income ...................................................................................... Provision for loan losses .................................................................................. Net interest income after provision for loan losses........................................... Noninterest income: Investment Management Division income........................................................ Service charges on deposit accounts............................................................... Net gains on sales of securities........................................................................ Other................................................................................................................ Noninterest expense: Salaries ............................................................................................................ Employee benefits ........................................................................................... Occupancy and equipment .............................................................................. Debt extinguishment......................................................................................... Other .............................................................................................................. $ 59,209 $ 51,921 $ 49,651 9,359 13,408 81,976 1,955 6,171 148 6,774 15,048 66,928 3,189 63,739 2,058 2,974 141 2,228 7,401 18,885 4,833 8,880 - 9,433 42,031 10,164 12,766 74,851 2,302 5,040 288 4,734 12,364 62,487 2,997 59,490 1,872 3,019 16 2,138 7,045 17,160 5,517 7,669 - 9,154 39,500 13,836 12,742 76,229 3,393 5,803 195 6,736 16,127 60,102 3,628 56,474 1,624 3,053 3,613 1,898 10,188 16,360 5,035 7,265 3,812 8,780 41,252 Income before income taxes........................................................................ Income tax expense........................................................................................... Net Income.................................................................................................. 29,109 6,095 23,014 $ 27,035 5,735 21,300 $ 25,410 5,017 20,393 $ Weighted average: Common shares............................................................................................... Dilutive stock options and restricted stock units............................................... 13,807,482 147,105 13,954,587 13,633,479 124,746 13,758,225 13,372,839 128,312 13,501,151 Earnings per share: Basic................................................................................................................. Diluted ............................................................................................................. Cash dividends declared per share.................................................................. $1.67 $1.65 $.72 $1.56 $1.55 $.68 $1.52 $1.51 $.64 2014 Annual Report 15 Officers and Official Staff OFFICERS The First of Long Island Corporation Michael N. Vittorio President and Chief Executive Officer Christopher Becker Executive Vice President and Chief Risk Officer Sallyanne K. Ballweg Senior Executive Vice President and Secretary Mark D. Curtis Executive Vice President, Chief Financial Officer and Treasurer Richard Kick Executive Vice President Donald L. Manfredonia Executive Vice President Richard P. Perro Executive Vice President Paul J. Daley Executive Vice President William Aprigliano Senior Vice President, Chief Accounting Officer and Controller Robert J. Colosa Vice President and Chief Auditor OFFICIAL STAFF The First National Bank of Long Island Administration Michael N. Vittorio President and Chief Executive Officer Sallyanne K. Ballweg Senior Executive Vice President Personal Banking Patricia A. DeMasi Vice President Suffolk County Regional Office Margaret M. Curran-Rusch Vice President and Team Leader Branch Administration Richard P. Perro Executive Vice President Cathy C. O’Malley Senior Vice President Western District Manager Allison Stansfield Senior Vice President Eastern District and Manhattan District Manager Giuseppe Sparacino Vice President and Branch Operations Manager John Cochrane Vice President Lew Yevoli Vice President Commercial Banking Paul J. Daley Executive Vice President Nassau County Regional Office Jane F. Reed Vice President and Team Leader Robert F. Eisen Vice President and Senior Commercial Banker Dante D. Mancini Vice President Nicholas E. Ulrich Vice President and Senior Commercial Banker Stephen Durso Vice President Alessandro Scichilone Vice President Richard B. Smith Vice President Municipal Banking Yve L. Sullivan Vice President Commercial Lending John G. Fitzpatrick Vice President Richard O’Rourke Vice President Kevin J. Talty Vice President Credit Donald L. Manfredonia Executive Vice President and Senior Lending Officer Credit Department Anne Marie Stefanucci Senior Vice President Lisa M. Woltmann Vice President Data Processing Jose Diaz Senior Vice President Deposit Operations Carmela Lalonde Assistant Vice President Finance Mark D. Curtis Executive Vice President, Chief Financial Officer and Cashier William Aprigliano Senior Vice President, Chief Accounting Officer and Controller Loan Center Rose Florio-Campanaro Senior Vice President Marketing Laura C. Ierulli Vice President Operations Administration Frank A. Milley Senior Vice President, Chief Investment Officer & Deputy CRA Officer – Investments Richard Kick Executive Vice President, Senior Operations Officer and Chief Security Officer Betsy Gustafson Senior Vice President Kristen Valkuchak Vice President Residential Mortgage Frederick T. Hughes Vice President Risk Management Christopher Becker Executive Vice President and Chief Risk Officer Tanweer S. Ansari, Esq. Senior Vice President and Chief Compliance Officer Robert J. Colosa Vice President and Chief Auditor Conrad Lissade Vice President and Director of Information Security Matthew J. Mankowski Vice President and Assistant Controller Dina M. Cascione Vice President and Financial Reporting Manager General Services Daniel Sapanara Vice President Human Resources Susan J. Hempton Vice President Information Technology Services Daniel J. Viola Vice President Investment Management Division Jane Carmody Vice President, Managing Director JoAnne C. Buckley Vice President and Trust Officer Jean-Pierre Prusack Vice President and Portfolio Manager Sharon E. Pazienza Vice President and Trust Officer General Counsel Schupbach, Williams & Pavone LLP SEC Counsel Luse Gorman Pomerenk & Schick, PC Independent Auditors Crowe Horwath LLP Annual Report on Form 10-K A copy of the Corporation’s annual report on Form 10-K for 2014 may be obtained without charge upon written request to Mark D. Curtis, Executive Vice President, Chief Financial Officer and Treasurer, The First of Long Island Corporation, 10 Glen Head Road, PO Box 67, Glen Head, New York 11545-0067. Executive Office The First of Long Island Corporation 10 Glen Head Road, Glen Head, New York 11545 (516) 671-4900 | www.fnbli.com Transfer Agent and Registrar Continental Stock Transfer & Trust Company 17 Battery Place – 8th Floor New York, NY 10004 (800) 509-5586 cstmail@continentalstock.com Annual Meeting Notice The Annual Meeting of Stockholders will be held at The Carltun, Eisenhower Park, East Meadow, New York on Tuesday, April 21, 2015 at 3:30 P.M. 16 The First of Long Island Corporation Business Advisory Board Joseph R. Albanese, Esq. Managing Partner Albanese & Albanese LLP Nicola Arena Chairman Mediterranean Shipping Co. (USA) Richard Arote Chief Executive Officer A.D.E. Systems Inc. Thomas Burke Chief Executive Officer Ophthalmic Consultants of Long Island Frank DellaFera President Fera Pharmaceuticals, LLC Bernard Esquenet Chief Executive Officer The Ruhof Corporation Robert Giambalvo, CPA President Giambalvo, Stalzer & Company, CPAs, P.C. Kevin J. Harding, Esq. Partner Harding, Burke & Hogan, PLLC Carmine R. Inserra Principal, Executive Director NAI Long Island David L. Katz, M.D. Asst. Prof. NYU Langone Medical Center Department of Radiology Section Chief, Off Site Ambulatory Care Section Next Generation Radiology Herbert Kotler, Esq. James J. Lynch Partner BaintonLynch LLP John I. Martinelli Principal Owen Petersen & Co., LLP Susan Hirschfeld Mohr President J. W. Hirschfeld Agency, Inc. James Panos, Esq. Attorney James Panos, Attorney at Law John G. Passarelli, M.D. Medical Director Long Island Eye Surgical Care P.C. Long Island Ambulatory Surgery Center, LLC Jay Pitti Chief Executive Officer Merrick House & Gardens Melvin Schreiber, CPA Managing Member Moses & Schreiber, LLP Arthur C. Schupbach, Esq. Partner Schupbach, Williams & Pavone LLP Frank Shahery Vice President Convermat Corporation Lloyd Straus President & Chief Operating Officer North American Partners in Anesthesia, LLP H. Craig Treiber The Treiber Group/ Arthur J. Gallagher Sal J. Turano President Abstracts Incorporated Candy Udell President London Jewelers Mark Udell Chief Executive Officer London Jewelers Arthur Ventura President Badge Agency, Inc. George J. Walsh Partner Thompson Hine LLP John W. Walter CEO & President National Security Systems, Inc. Executive Vice President Trump Management, Inc. David Weinstein Partner DNA Partners LLC Robert A. Wilkie, Esq. Partner Wilkie & Wilkie Mark Wurzel President Calico Cottage Inc. Long Island (516) 671-4900 | Manhattan (212) 566-1500 www.fnbli.com ® 

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