The First of Long Island
Annual Report 2017

Plain-text annual report

50 BRANCHES AND GROWING 2017 ANNUAL REPORT ® 2017 Annual Report 1 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 Cold Spring Harbor 147 Main Street Cold Spring Harbor, NY 11724 (631) 367-3600 6 Deer Park 60 East Industry Court Deer Park, NY 11729 (631) 243-2600 7 East Islip 151 West Main Street East Islip, NY 11730 (631) 277-2936 The First of Long Island Corporation 8 East Meadow 1975 Hempstead Turnpike East Meadow, NY 11554 (516) 357-7200 9 East Setauket 234 Main Street (Route 25A) East Setauket, NY 11733 (631) 564-1000 10 Farmingdale 22 Allen Boulevard Farmingdale, NY 11735 (631) 753-8888 11 Garden City 1050 Franklin Avenue Suite 100 Garden City, NY 11530 (516) 742-6262 12 Glen Head 10 Glen Head Road Glen Head, NY 11545 (516) 674-6650 13 Great Neck 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 Hewlett 1301 Broadway Hewlett, NY 11557 (516) 295-1974 18 Hicksville 106 Old Country Road Hicksville, NY 11801 (516) 932-7150 19 Huntington 253 New York Avenue Huntington, NY 11743 (631) 427-4143 20 Lake Success 3000 Marcus Avenue Lake Success, NY 11042 (516) 775-3133 21 Lindenhurst 1 East Montauk Highway Lindenhurst, NY 11757 (631) 956-3800 22 Locust Valley 108 Forest Avenue Suite 2 Locust Valley, NY 11560 (516) 671-2299 23 Manhasset 572 Plandome Road Manhasset, NY 11030 (516) 365-5010 24 Massapequa 574 Broadway Massapequa, NY 11758 (516) 795-0100 25 Massapequa Park 1049 Park Boulevard Massapequa Park, NY 11762 (516) 795-2265 26 Melville 555 Broad Hollow Road Suite 001 Melville, NY 11747 (631) 752-1000 27 Merrick 1810 Merrick Avenue Merrick, NY 11566 (516) 771-6000 28 New Hyde Park 243 Jericho Turnpike New Hyde Park, NY 11040 (516) 328-3100 ® GROWING IN A MEASURED AND DISCIPLINED WAY 29 Northport 711 Fort Salonga Road Northport, NY 11768 (631) 261-4000 30 Northport Village 105 Main Street Northport, NY 11768 (631) 261-0331 31 Oceanside 2933 Long Beach Road Oceanside, NY 11572 (516) 536-3989 32 Old Brookville 209 Glen Head Road Old Brookville, NY 11545 (516) 759-9002 33 Patchogue 392 East Main Street Patchogue, NY 11772 (631) 289-1189 34 Point Lookout 26A Lido Boulevard P.O. Box 173 Point Lookout, NY 11569 (516) 431-3144 35 Port Jefferson Station Davis Professional Park 5225 Nesconset Highway Building 4, Suite 21 Port Jefferson Station, NY 11776 (631) 928-4411 36 Rockville Centre 310 Merrick Road Rockville Centre, NY 11570 (516) 763-5533 37 Roslyn Heights 130 Mineola Avenue Roslyn Heights, NY 11577 (516) 621-1900 38 Sayville 215 West Main Street Sayville, NY 11782 (631) 472-7000 39 Sea Cliff 299 Sea Cliff Avenue Sea Cliff, NY 11579 (516) 671-7868 40 Smithtown 285 Middle Country Road Suite 104 Smithtown, NY 11787 (631) 265-0200 41 Valley Stream 127 East Merrick Road Valley Stream, NY 11580 (516) 825-0202 42 Woodbury 800 Woodbury Road Suite M Woodbury, NY 11797 (516) 364-3434 MANHATTAN 43 232 Madison Avenue New York, NY 10016 (212) 213-8111 44 225 Broadway Suite 703 New York, NY 10007 (212) 693-1515 QUEENS 45 Astoria 23-25 31st Street Astoria, NY 11105 (929) 429-3500 46 Bay Terrace 23-88A Bell Boulevard Bayside, NY 11360 (929) 409-6100 47 College Point 132-11A 14th Avenue College Point, NY 11356 (718) 215-7500 48 Howard Beach 159-14 Cross Bay Boulevard Howard Beach, NY 11414 (718) 835-1962 49 Little Neck 50 Whitestone 19-01 Utopia Parkway Whitestone, NY 11357 (718) 279-1206 BROOKLYN 51 Bay Ridge 9202 4th Avenue Brooklyn, NY 11209 (646) 795-5000 52 Coming Soon! Fort Hamilton Fort Hamilton Pkwy 559 86th Street Brooklyn, NY 11209 53 Coming Soon! Cobble Hill 227 Smith Street Brooklyn, NY 11231 54 Coming Soon! Marine Park 4102 Avenue U Brooklyn, NY 11234 254-57 Horace Harding Expressway Little Neck, NY 11362 (929) 448-2200 2017 Annual Report 1 DEAR SHAREHOLDERS, 2017 was noteworthy because we celebrated our 90th anniversary. The Bank opened its doors in October 1927 at 10 Glen Head Road, Glen Head, New York as The First National Bank of Glen Head. We changed our name to The First National Bank of Long Island in 1978. The name change symbolized our strategy to expand our distribution system throughout the Long Island market. 2 The First of Long Island Corporation Our original headquarters was less than 2,000 square feet. What drove the opening of the Bank was a dissatisfaction with the personal service being provided by the large banks of that time. It was time to create an “alternative” to the big banks. Today we see ourselves no differently as we position our brand of banking as the “big bank alternative.” When it comes down to it, many banks are the same in terms of product and service offerings. We believe today as we did in 1927 that over the long-term the only thing that will differentiate one bank from another is the quality of “personal” service rendered by its employees. That service ethic is embodied in the culture of the organization. It is reinforced each and every day by the senior management team of the Bank. I am grateful to the dedicated employees of The First National Bank of Long Island. They are a talented and motivated group of individuals who live in and are an integral part of the fabric of the communities they serve. On a daily basis, they routinely exceed my expectations ensuring clients receive superior service. They have made our institution a warm, friendly place to bank and it is my pleasure to work beside them on a daily basis. I am proud to say we have delivered this kind of service approach for the last 90 years. I truly believe our culture and friendly approach helps drive shareholder value. On that note, I am pleased to report another year of strong financial performance for our bank. Net Income for 2017 was $35.1 million, an increase of $4.2 million, or 13.7%, over 2016. The increase was primarily attributable to growth in net interest income of $10.4 million, or 12.1%, and noninterest income, before security gains and losses, of $1.2 million, or 15.8%. The increase in net interest income is mainly attributable to growth in average interest-earning assets of $335.6 million, or 10.4%, which was driven by an increase in the average balance of loans of $393.9 million or 16.7%. Our loan growth occurred in commercial and residential mortgage loans and, to a lesser degree, commercial and industrial loans. Our loan growth was mainly funded by growing our deposits through the continued expansion of our branch distribution system, targeted solicitation efforts, delivery of high quality personalized service and offering a competitive product suite. I am also pleased to report that the average balance of our noninterest-bearing checking deposits grew 10.2%. We consider the checking account to be the primary relationship account, and growth in this product category demonstrates the genuine franchise value that we continue to build for our investors. Robust growth in deposits and earning assets is essential in a challenging interest rate environment. Some other significant highlights include the continued increase in our cash dividends per share which increased 5.5% to $.58 this year from $.55. Over the years, the continued and consistent increases in our cash dividends demonstrates the confidence that management and the Board have in the Bank’s future earnings power. We remain confident in our organic growth strategy. Over the last ten years, our net income increased at a compound annual growth rate (“CAGR”) of 11.8%. We are proud of our results. In the process of growing earnings, our book value per share increased 11.4% to $14.37 at December 31, 2017 from $12.90 at December 31, 2016. In our opinion, the growth in our book value is a strong indicator of the shareholder value we are creating. Over the last ten years, our book value per share has grown at a CAGR of 8.9%. Book value growth over the long-term is consistent with how we manage the Bank. We do not focus on short-term performance. We do not manage the Bank on a day-to-day or quarter-to-quarter basis. It is always about our performance over the long- term. It is interesting to note that our stock’s total return, including dividend reinvestment, for the 15-year period ended December 31, 2017 is 410%. Our growth and profitability has been enhanced by the expansion of our branch distribution system. We believe in branches. As we enter new micro-markets within the New York Metropolitan area, our branches have been the catalyst for gaining market share. Their locations and design are well thought out in terms of the target markets we serve, the amount of capital we invest and efficiency of our expense base. During the year, we opened four more branches. These include our East Islip and East Setauket locations in Suffolk County opened in February and July and our Little Neck and Astoria locations in Queens opened in December. The Astoria branch was our sixth location in the boroughs of Queens and Brooklyn. As these boroughs are lucrative 2017 Annual Report 3 retail banking markets, we plan to open three or four more branches there before the end of 2018 and are committed to continued expansion in the coming years. We anticipate gaining market-share in the process which will drop to the bottom line. Our model remains utilizing continued branch expansion to fund loan growth with core deposits and maintaining pristine credit quality and best-in-class operating efficiency. This approach remains valid and has been driving shareholder value. The conservative mix of the earning assets on our balance sheet is measured by our asset quality. In a flat yield curve environment, asset quality is paramount. At December 31, 2017, our nonaccrual loans amounted to $1 million, or 3 basis points of total loans outstanding, compared to $2.6 million, or 10 basis points at December 31, 2016. Troubled debt restructurings amounted to $1 million, or 4 basis points of total loans outstanding at December 31, 2017, representing a decrease of $498,000 from year-end 2016. Loans past due 30 to 89 days amounted to only $2.8 million, or 9 basis points of total loans outstanding. Any way you look at it, our loan quality remains excellent. The credit quality of the Bank’s securities also remains excellent. 74% of our mortgage securities are full faith and credit obligations of the U.S. government. The balance are obligations of government-sponsored entities. The remainder of the Bank’s securities portfolio principally consists of high quality, general obligation municipal securities rated AA or better by major rating agencies. In buying municipal securities, the Bank uses credit agency ratings for screening purposes only and then performs its own credit analysis. On an ongoing basis, the bank periodically assesses the credit strength of the municipal securities in its portfolio and makes decisions to hold or sell our securities based on such assessments. We will face a variety of challenges in 2018 and beyond. In the current interest rate environment, competitive market forces are driving up our cost of deposits while yields on our earning assets are not expected to increase as quickly or as much. As a result, our net interest margin will remain under pressure and our net interest income and corresponding earnings will only be able to increase with appropriate growth. Price competition will remain a significant factor especially as we compete for core deposits and high quality loans. The banking industry continues to face new and complex regulatory requirements and enhanced supervisory oversight which is exerting downward pressure on revenues and upward pressure on required capital levels and the cost of doing business. Although the markets are expecting some regulatory relief, the timing and magnitude of that remains uncertain. Despite these challenges, the Bank has been able to produce long-term results that we are proud of. We have assembled a talented management team and a dedicated staff. Expenses are well-managed, and our asset quality is among the best in our peer group. We continue to grow organically in a measured and disciplined way. The morale of our employees is high, and they are proud of the Bank. This has certainly worked in our favor in building brand and reputation in the market. Our board, myself, our senior management and our employees remain committed to building long-term franchise value and the shareholder value that you are entitled to. It is my distinct honor to be your President and Chief Executive Officer. Always feel free to contact me to answer any questions you may have. We are serious about maintaining our credit quality. As bankers, we believe that conservatism is essential to producing consistently strong financial results and creating long-term shareholder value. Sincerely, Michael N. Vittorio President and Chief Executive Officer 4 The First of Long Island Corporation Total Assets 4000 3500 3000 2500 2000 1500 1000 500 FINANCIAL OVERVIEW 0 $35.1 $30.9 NET INCOME (in millions) 1 . 8 % R 1 G A R C A E N - Y E T $21.3 $20.4 $19.5 $18.4 $25.9 $23.0 1.5 EPS 1.2 0.9 0.6 0.3 0.0 book value 15 12 9 6 3 0 Net income 40 35 30 25 20 15 10 5 0 3000 2500 2000 1500 1000 500 0 TOTAL ASSETS (in millions) $3,895 (in millions) EARNING PER SHARE $1.43 $1.34 BOOK VALUE PERSHARE (in millions) $14.37 $12.90 R C A E N - Y E T 3 . 8 % R 1 G A $3,510 $3,130 $2,721 $2,400 $2,108 $2,022 R 7 . 9 % G A R C A E Y N - E T $1.22 $1.10 $1.02 $0.98 $1.03 $1.01 $0.82 $0.79 R 8 . 9 % G A R C A E $10.14 $10.04 N - Y E T $9.57 $11.85 $11.20 $8.00 $7.18 $6.33 $13.0 $13.5 $1,675 $1,711 $1,262 ’08 ’09 ’10 ’11 ’12 ’13 ’14 ’15 ’16 ’17 ’08 ’09 ’10 ’11 ’12 ’13 ’14 ’15 ’16 ’17 ’08 ’09 ’10 ’11 ’12 ’13 ’14 ’15 ’16 ’17 ’08 ’09 ’10 ’11 ’12 ’13 ’14 ’15 ’16 ’17 Total loans TOTAL LOANS (in millions) $2,950 TOTAL DEPOSITS (in millions) 8 . 8 % R 1 G A R C A E N - Y E T $2,545 $2,248 $1,805 $1,478 $1,147 $986 $903 $828 $658 2 . 5 % R 1 G A R C A E N - Y E T $2,285 $1,985 $1,782 $1,633 $1,503 $1,278 $1,293 $900 $2,822 $2,609 MARKET CAPITALIZATION (in millions) CASH DIVIDENDS PER SHARE $0.58 $703 $677 (in millions) $0.55 $0.52 R 8 . 4 % $0.45 $0.48 G A R C A E $0.43 N - Y E T $0.40 $0.37 $0.34 $0.29 % T E N-Y E A R C A G R 1 7.7 $424 $392 $394 $250 $231 $255 $171 $182 ’08 ’09 ’10 ’11 ’12 ’13 ’14 ’15 ’16 ’17 ’08 ’09 ’10 ’11 ’12 ’13 ’14 ’15 ’16 ’17 ’08 ’09 ’10 ’11 ’12 ’13 ’14 ’15 ’16 ’17 ’08 ’09 ’10 ’11 ’12 ’13 ’14 ’15 ’16 ’17 2017 Annual Report 5 deposits Market cop cash dividends 800 700 600 500 400 300 200 100 0 0.6 0.5 0.4 0.3 0.2 0.1 0.0 3000 2500 2000 1500 1000 500 0 GROWING OUR PRESENCE LONG ISLAND EAST ISLIP | 151 WEST MAIN STREET | OPENED 2/6/17 There are many success stories in the local communities we serve. Our clients’ loyalty and longevity with our Bank is a result of the significant contributions our employees make every day to help our customers with their banking needs. DEPOSITS AS OF 2/16/18: $39,166,000 6 The First of Long Island Corporation GROWING OUR PRESENCE LONG ISLAND EAST SETAUKET | 234 MAIN STREET (ROUTE 25A) | OPENED 7/31/17 ® The Bank’s history of 90 years demonstrates growth and creation of shareholder value. We have differentiated ourselves from our competitors through the service we provide to our customers. DEPOSITS AS OF 2/16/18: $22,686,000 2017 Annual Report 7 CONTINUING OUR EXPANSION IN QUEENS LITTLE NECK | 254-57 HORACE HARDING EXPRESSWAY | OPENED 12/4/17 The Bank’s vision is clear and concise, to cater to our clients with the personalized service they deserve through our Relationship Managers. This includes tailored, financial solutions to professionals, business owners, consumers and families. We are a customer-driven organization and see ourselves as a big bank alternative. DEPOSITS AS OF 3/2/18: $37,820,000 8 The First of Long Island Corporation CONTINUING OUR EXPANSION IN ASTORIA | 23-25 31ST STREET | OPENED 12/15/17 We continue to expand in a measured and disciplined way. As we grow our market share, the results will drop to the bottom line— creating more value for our shareholders. DEPOSITS AS OF 3/3/18: $1,939,000 2017 Annual Report 9 FULL YEAR 2017 HIGHLIGHTS* • Net Income increased 13.7% to $35.1 million from $30.9 million • EPS increased 6.7% to $1.43 from $1.34 • Cash Dividends Per Share increased 5.5% to $.58 from $.55 • Book Value Per Share increased 11.4% to $14.37 at 12/31/17 from $12.90 at 12/31/16 • 16.7% growth in the average balance of Loans • 10.2% growth in the average balance of Noninterest-Bearing Checking Deposits • 8.6% growth in the average balance of Total Deposits • The Credit Quality of the Bank’s loan and securities portfolios remains excellent *All comparisons are of 2017 to 2016. BUSINESS OF THE CORPORATION 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”). 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. 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 in Nassau and Suffolk Counties, Long Island and the New York City boroughs of Queens, Brooklyn and Manhattan. The Corporation is subject to regulation and supervision of the Federal Reserve Board and the Securities and Exchange Commission. The Bank is subject to regulation and supervision of the Federal Reserve Board, the Office of the Comptroller of the Currency (OCC) and the Federal Deposit Insurance Corporation, which also insures its deposits. The OCC is the primary banking agency responsible for regulating and supervising the Bank. 10 The First of Long Island Corporation SELECTED FINANCIAL DATA SELECTED FINANCIAL DATA 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: 2017 $118,265 21,709 96,556 4,854 35,122 $1.44 1.43 .58 40.56% $14.37 14.36 2014 2016 2015 (dollars in thousands, except per share data) $81,976 15,048 66,928 3,189 23,014 $104,123 18,002 86,121 3,480 30,880 $92,135 16,529 75,606 4,317 25,890 $1.35 1.34 .55 41.04% $12.90 12.90 $1.23 1.22 .52 42.62% $11.85 11.84 $1.11 1.10 .48 43.64% $11.20 11.19 2013 $74,851 12,364 62,487 2,997 21,300 $1.04 1.03 .45 43.69% $10.04 10.03 $3,894,708 2,950,352 33,784 2,821,997 704,938 354,450 $3,695,850 2,758,116 32,022 2,812,733 540,307 334,088 $3,510,320 2,545,421 30,057 2,608,717 586,224 305,830 $3,329,308 2,364,187 28,238 2,590,988 432,554 290,806 $3,130,343 2,248,183 27,256 2,284,675 577,214 250,936 $2,897,548 1,990,823 24,531 2,215,883 419,372 243,330 $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 $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 Return on Average Assets (ROA) …......................... Return on Average Stockholders' Equity (ROE) ....... Average Equity to Average Assets ........................... .95% 10.51% 9.04% .93% 10.62% 8.73% .89% 10.64% 8.40% .92% 10.25% 8.93% .95% 10.49% 9.07% STOCK PRICES AND CASH DIVIDENDS 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, 2017 and 2016. Quarter First Second Third Fourth High $29.30 30.15 31.10 33.50 2017 Low $26.00 25.60 26.05 27.50 Dividends Declared $ .14 .14 .15 .15 High $20.33 21.29 22.35 29.67 2016 Low $17.43 18.06 18.68 20.99 Dividends Declared $ .13 .13 .14 .14 2017 Annual Report 7 2017 Annual Report 11 CONSOLIDATED BALANCE SHEETS CONSOLIDATED BALANCE SHEETS December 31 (in thousands) 2017 2016 Assets: Cash and cash equivalents .................................................................................. $ 69,672 $ 36,929 Investment securities: Held-to-maturity, at amortized cost (fair value of $7,749 and $11,637) ...... Available-for-sale, at fair value.................................................................... Loans: Commercial and industrial........................................................................... Secured by real estate: Commercial mortgages........................................................................... Residential mortgages............................................................................ Home equity lines.................................................................................. Consumer and other .................................................................................... 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............................................................................ Stockholders' Equity: Common stock, par value $.10 per share: Authorized, 40,000,000 shares Issued and outstanding, 24,668,390 and 23,699,107 shares............................. Surplus ............................................................................................................... Retained earnings ............................................................................................... Accumulated other comprehensive income (loss), net of tax .............................. 12 The First of Long Island Corporation 7,636 720,128 727,764 11,387 815,299 826,686 109,623 126,038 1,193,007 1,558,564 83,625 5,533 2,950,352 (33,784) 2,916,568 1,085,198 1,238,431 86,461 9,293 2,545,421 (30,057) 2,515,364 37,314 39,648 59,665 19,152 24,925 3,894,708 $ 31,763 34,361 33,097 17,316 14,804 3,510,320 $ $ 896,129 1,602,460 203,890 119,518 2,821,997 $ 808,311 1,519,749 178,918 101,739 2,608,717 281,141 423,797 10,942 2,381 3,540,258 207,012 379,212 9,481 68 3,204,490 2,467 127,122 224,315 353,904 546 354,450 3,894,708 $ 2,370 101,738 203,326 307,434 (1,604) 305,830 3,510,320 $ CONSOLIDATED STATEMENTS OF INCOME CONSOLIDATED STATEMENTS OF INCOME Year Ended December 31 (dollars in thousands, except per share data) 2017 2016 2015 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 (losses) on sales of securities............................................ Other................................................................................................... Noninterest expense: Salaries .............................................................................................. Employee benefits ............................................................................. Occupancy and equipment ................................................................ Debt extinguishment.......................................................................... Other ................................................................................................. $ 97,027 $ 82,456 $ 70,558 7,754 13,484 118,265 7,113 5,479 1,345 7,772 21,709 96,556 4,854 91,702 2,090 2,792 (1,866) 3,813 6,829 24,159 7,150 10,245 — 11,966 53,520 7,981 13,686 104,123 5,344 5,107 296 7,255 18,002 86,121 3,480 82,641 2,000 2,666 1,868 2,845 9,379 22,116 6,889 9,264 1,756 12,066 52,091 7,991 13,586 92,135 2,564 5,987 183 7,795 16,529 75,606 4,317 71,289 2,044 2,577 1,324 2,813 8,758 20,680 6,021 8,798 1,084 10,108 46,691 Income before income taxes.......................................................... Income tax expense.............................................................................. Net income.................................................................................... 45,011 9,889 35,122 $ 39,929 9,049 30,880 $ 33,356 7,466 25,890 $ Earnings per share: Basic................................................................................................... Diluted ............................................................................................... Cash dividends declared per share.................................................... $1.44 $1.43 $.58 $1.35 $1.34 $.55 $1.23 $1.22 $.52 2017 Annual Report 13 BOARD OF DIRECTORS The First of Long Island Corporation Left to right (standing): Eric J. Tveter, Howard Thomas Hogan Jr., Esq., Walter C. Teagle III, Michael N. Vittorio, Denise Strain, Paul T. Canarick and Alexander L. Cover Left to right (seated): Peter Quick, Milbrey Rennie Taylor, John J. Desmond and Stephen V. Murphy Paul T. Canarick President & Principal Paul Todd, Inc. (construction company) Howard Thomas Hogan Jr., Esq. Director Hogan & Hogan (attorney at law) Alexander L. Cover Business & Management Consultant Retired Partner of Ernst & Young LLP John J. Desmond Retired Partner-in-Charge of the Long Island Office Grant Thorton LLP Stephen V. Murphy President S.V. Murphy & Co. (investment banking) Peter Quick Partner Burke and Quick Partners Holdings LLP Eric J. Tveter Chief Executive Officer Central Europe Group Liberty Global plc Michael N. Vittorio President and Chief Executive Officer The First National Bank of Long Island Denise Strain Retired Managing Director of Citigroup Inc. 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) 14 The First of Long Island Corporation EXECUTIVE STAFF The First National Bank of Long Island Tanweer S. Ansari, Esq. Senior Vice President and Chief Compliance Officer Compliance William Aprigliano Senior Vice President and Chief Accounting Officer Finance Christopher Becker Executive Vice President and Chief Risk Officer Risk Management Margaret M. Curran-Rusch Senior Vice President and Team Leader, Suffolk County Regional Office Commercial Banking Mark D. Curtis Senior Executive Vice President, Chief Financial Officer and Cashier Finance Paul J. Daley Executive Vice President Commercial Banking Jose Diaz Senior Vice President Technology & Operations Officer Rose Florio-Campanaro Senior Vice President and Loan Center Department Manager Loan Center Cathy C. O’Malley Senior Vice President, Branch District Manager, Western District Richard P. Perro Executive Vice President Branch Administration Christopher J. Hilton Senior Vice President and Commercial Banking Manager Richard Kick Executive Vice President Retail Lending & Facilities Administration Donald L. Manfredonia Executive Vice President Senior Lending and Deputy CRA Officer Jay P. McConie Senior Vice President and Chief Investment Officer Finance Jane F. Reed Senior Vice President and Team Leader, Nassau County Regional Office Commercial Banking Allison Stansfield Senior Vice President, Branch District Manager, Eastern and Manhattan Districts Anne Marie Stefanucci Senior Vice President, Credit Risk and Administration Officer Credit Department Michael N. Vittorio President & Chief Executive Officer Back Row: Middle Row: Anne Marie Stefanucci, William Aprigliano, Jane F. Reed, Donald L. Manfredonia, Christopher Becker, Michael N. Vittorio, Mark D. Curtis, Christopher J. Hilton, Richard P. Perro and Rose Florio-Campanaro Paul J. Daley and Richard Kick Front Row: Margaret M. Curran-Rusch, Jay P. McConie, Allison Stansfield, Tanweer S. Ansari, Cathy C. O’Malley and Jose Diaz 2017 Annual Report 17 2017 Annual Report 15 OFFICERS AND OFFICIAL STAFF OFFICERS The First of Long Island Corporation Michael N. Vittorio President and Chief Executive Officer Mark D. Curtis Senior Executive Vice President, Chief Financial Officer and Treasurer Christopher Becker Executive Vice President, Chief Risk Officer and Corporate Secretary Paul J. Daley Executive Vice President Richard Kick Executive Vice President Donald L. Manfredonia Executive Vice President Richard P. Perro Executive Vice President William Aprigliano Senior Vice President and Chief Accounting Officer Robert J. Colosa Vice President and Chief Auditor OFFICIAL STAFF The First National Bank of Long Island Executive Office Michael N. Vittorio President and Chief Executive Officer Branch Administration Richard P. Perro Executive Vice President Cathy C. O’Malley Senior Vice President, Branch District Manager, Western District Allison Stansfield Senior Vice President, Branch District Manager, Eastern and Manhattan Districts Giuseppe Sparacino Vice President and Branch Operations Manager Commercial Banking Paul J. Daley Executive Vice President Christopher J. Hilton Senior Vice President and Commercial Banking Manager Nassau County Regional Office Jane F. Reed Senior Vice President and Team Leader Doreen D. Severin Vice President Nicholas E. Ulrich Vice President Joseph J. Wasilus Vice President Suffolk County Regional Office Margaret M. Curran-Rusch Senior Vice President and Team Leader Stephen Durso Vice President General Counsel Schupbach, Williams & Pavone LLP SEC Counsel Luse Gorman, PC Independent Auditors Crowe Horwath LLP 16 The First of Long Island Corporation 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 Administration Donald L. Manfredonia Executive Vice President, Senior Lending and Deputy CRA Officer Credit Department Anne Marie Stefanucci Senior Vice President, Credit Risk and Administration Officer Lisa M. Woltmann Vice President, Assistant Manager Suzan Haas Vice President Kelly McCormack Vice President Andrea Volpe Vice President Finance Jay P. McConie Senior Vice President and Chief Investment Officer Maria E. Doyle Vice President and Controller Dina M. Cascione Vice President and Financial Reporting Manager Matthew J. Mankowski Vice President and Assistant Controller Human Resources Susan J. Hempton Vice President and Director Rita E. Quinn Vice President and Human Resources Generalist Investment Management Division Jane Carmody Vice President and Managing Director JoAnne C. Buckley Vice President Retail Lending & Facilities Administration Richard Kick Executive Vice President, Senior Retail Lending Officer, Senior Facilities Administrator and Chief Security Officer Frederick T. Hughes Vice President and Residential Mortgage Sales Department Manager Marina Salazar Vice President and Assistant Residential Mortgage Sales Manager Daniel Sapanara Vice President and General Services Manager Risk Management Christopher Becker Executive Vice President and Chief Risk Officer Tanweer S. Ansari, Esq. Senior Vice President and Chief Compliance Officer Sharon E. Pazienza Vice President and Trust Officer Robert J. Colosa Vice President and Chief Auditor Keith Rugen Vice President and Portfolio Manager Loan Center Rose Florio-Campanaro Senior Vice President and Loan Center Department Manager Leonardo G. Tavera Vice President and Risk Manager Technology & Operations Jose Diaz Senior Vice President Conrad Lissade Vice President and Director of Information Security Kristen Valkuchak Vice President and Operations Manager Daniel J. Viola Vice President and Director of Information Technology Mark D. Curtis Senior Executive Vice President, Chief Financial Officer and Cashier Marketing Laura C. Ierulli Vice President and Director William Aprigliano Senior Vice President and Chief Accounting Officer Annual Report on Form 10-K A copy of the Corporation’s annual report on Form 10-K for 2017 may be obtained without charge upon written request to Mark D. Curtis, Senior 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. Transfer Agent and Registrar Continental Stock Transfer & Trust Company 1 State Street, 30th Floor New York, NY 10004 (800) 509-5586 cstmail@continentalstock.com Executive Office The First of Long Island Corporation 10 Glen Head Road, Glen Head, New York 11545 (516) 671-4900 | www.fnbli.com Annual Meeting Notice The Annual Meeting of Stockholders will be held at The Carltun, Eisenhower Park, East Meadow, New York on Tuesday, April 17, 2018 at 3:30 P.M. 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. Barry Berg, CPA Managing Partner Nussbaum, Yates, Berg, Klein & Wolpow, LLP Thomas Burke Chief Executive Officer Spectrum Vision Partners 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 and Burke, PLLC Carmine R. Inserra Principal, Executive Director NAI Long Island David L. Katz, M.D. President DLK Consulting Services, LLC Healthcare Consulting, Investments, Management James D. Kiley Partner Kiley, Kiley, & Kiley, PLLC 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. President, Sight 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 Arthur C. Schupbach, Esq. Partner Schupbach, Williams & Pavone LLP Transfer Agent and Registrar Continental Stock Transfer & Trust Company 1 State Street, 30th 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 17, 2018 at 3:30 P.M. Frank Shahery Vice President Convermat Corporation Lloyd Straus Senior Advisor North American Partners in Anesthesia, LLP H. Craig Treiber C.E.O. Treiber Family Enterprises Sal J. Turano President Abstracts Incorporated Candy Udell President London Jewelers Mark Udell Chief Executive Officer London Jewelers * In memoriam: We express our sincere condolences for the recent passing of John W. Walter and are very appreciative for his dedicated service to the Bank. Arthur Ventura President Badge Agency, Inc. George J.Walsh Partner Thompson Hine LLP David Weinstein Partner DNA Partners LLC Mark Wurzel President Calico Cottage Inc. John W. Walter* CEO & President National Security Systems, Inc. Exclusive Vice President Trump Management,Inc. 20 The First of Long Island Corporation ® 

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