The First of Long Island
Annual Report 2019

Plain-text annual report

2019 Annual Report Company Profile 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. Mission Statement Our mission is to deliver exceptional personalized service to small businesses, professionals, lower middle market customers, service-conscious consumers, and municipalities in targeted markets, resulting in superior financial returns to our shareholders. Selected Financial Data INCOME STATEMENT DATA: (dollars in thousands, except per share data) 2019 2018 2017 2016 2015 Interest Income Interest Expense Net Interest Income Provision (Credit) 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 $ 143,850 $ 138,237 $ 118,265 $ 104,123 $ 92,135 43,681 100,169 33 41,555 35,730 102,507 (1,755) 41,573 21,709 96,556 4,854 35,122 18,002 86,121 3,480 16,529 75,606 4,317 30,880 25,890 $ 1.68 $ 1.64 $ 1.44 $ 1.35 $ 1.23 1.67 .70 41.92% 1.63 .64 1.43 .58 1.34 .55 1.22 .52 39.26% 40.56% 41.04% 42.62% $ 16.26 $ 15.27 $ 14.37 $ 12.90 $ 11.85 16.25 15.26 14.36 12.90 11.84 $4,097,843 $4,241,060 $3,894,708 $3,510,320 $3,130,343 3,188,249 3,263,399 2,950,352 2,545,421 2,248,183 Allowance for Loan Losses 29,289 30,838 33,784 30,057 27,256 Deposits Borrowed Funds Stockholders’ Equity AVERAGE BALANCE SHEET DATA: Total Assets Loans 3,144,016 3,084,972 2,821,997 2,608,717 2,284,675 528,182 389,108 750,950 388,187 704,938 354,450 586,224 577,214 305,830 250,936 $4,194,355 $4,177,341 $3,695,850 $3,329,308 $2,897,548 3,217,530 3,177,519 2,758,116 2,364,187 1,990,823 Allowance for Loan Losses 30,080 34,960 32,022 28,238 24,531 Deposits Borrowed Funds Stockholders’ Equity FINANCIAL RATIOS: Return on Average Assets (ROA) Return on Average Equity (ROE) Average Equity to Average Assets 3,276,699 3,168,348 2,812,733 2,590,988 2,215,883 494,785 391,613 623,587 374,876 540,307 334,088 432,554 419,372 290,806 243,330 .99% 10.61% 9.34% 1.00% 11.09% 8.97% .95% 10.51% 9.04% .93% 10.62% 8.73% .89% 10.64% 8.40% 1 2019 Annual Report Dear Shareholder, Dear Shareholder, OUR BANK ENTERS A NEW DECADE WITH AN IMPRESSIVE HISTORY OF OUR BANK ENTERS A NEW DECADE WITH AN IMPRESSIVE HISTORY OF CONSISTENT FINANCIAL PERFORMANCE THAT SPANS NINETY-TWO YEARS. CONSISTENT FINANCIAL PERFORMANCE THAT SPANS NINETY-TWO YEARS. I AM PRIVILEGED TO BECOME THE SEVENTH PRESIDENT AND CHIEF I AM PRIVILEGED TO BECOME THE SEVENTH PRESIDENT AND CHIEF EXECUTIVE OFFICER OF THE FIRST NATIONAL BANK OF LONG ISLAND. EXECUTIVE OFFICER OF THE FIRST NATIONAL BANK OF LONG ISLAND. During 2019, we successfully executed our plans to slow balance sheet growth, During 2019, we successfully executed our plans to slow balance sheet growth, shift our mix of loans from residential to commercial, stabilize our net shift our mix of loans from residential to commercial, stabilize our net interest margin, improve service charge income and execute on our stock interest margin, improve service charge income and execute on our stock repurchase plan. As a result, earnings per share increased to $1.67 in repurchase plan. As a result, earnings per share increased to $1.67 in 2019 from $1.63 in 2018. Net income was relatively unchanged from the 2019 from $1.63 in 2018. Net income was relatively unchanged from the prior year at $41.6 million and reflected after-tax executive retirement prior year at $41.6 million and reflected after-tax executive retirement related charges of $2 million. Return on equity was 10.61% and return related charges of $2 million. Return on equity was 10.61% and return on assets was .99%. Book value per share increased to $16.26 at year- on assets was .99%. Book value per share increased to $16.26 at year- end 2019 from $15.27 at year-end 2018. The Bank is well-positioned end 2019 from $15.27 at year-end 2018. The Bank is well-positioned to move forward. As of year-end, our branch network remained at fifty-two offices As of year-end, our branch network remained at fifty-two offices extending from Manhattan to Patchogue, Long Island. We expanded extending from Manhattan to Patchogue, Long Island. We expanded into Fort Hamilton, Brooklyn earlier in the year. We also leased into Fort Hamilton, Brooklyn earlier in the year. We also leased space along Avenue U in the enclave of Marine Park, Brooklyn in space along Avenue U in the enclave of Marine Park, Brooklyn in anticipation of our fourth location in the borough. At the gateway to anticipation of our fourth location in the borough. At the gateway to the twin forks, we will open our first branch on Eastern Long Island the twin forks, we will open our first branch on Eastern Long Island on Main Street in Riverhead. While we seek to identify efficiencies in on Main Street in Riverhead. While we seek to identify efficiencies in our existing footprint, expanding geographically through de novo branching our existing footprint, expanding geographically through de novo branching remains a key strategic initiative. Today customer expectations include rapid delivery of digital products via Today customer expectations include rapid delivery of digital products via smart phones, tablets, watches and even fitness trackers. Mobile banking smart phones, tablets, watches and even fitness trackers. Mobile banking expands beyond checking account balances and transferring funds. Consumers expands beyond checking account balances and transferring funds. Consumers are paying at the local coffee shop, scheduling public transportation, splitting are paying at the local coffee shop, scheduling public transportation, splitting the dinner bill with friends via P2P payments, and depositing checks by snapping the dinner bill with friends via P2P payments, and depositing checks by snapping a picture. Consumers expect payment equipment to read their phone or a picture. Consumers expect payment equipment to read their phone or watch instead of inserting cards from their wallet. Technology is not waiting for watch instead of inserting cards from their wallet. Technology is not waiting for conventional bankers to catch up so the need to remain relevant is critical. As such conventional bankers to catch up so the need to remain relevant is critical. As such we continuously evaluate enhancements to our digital offerings. In 2020 we plan we continuously evaluate enhancements to our digital offerings. In 2020 we plan to rollout upgrades to our commercial online banking, offer Zelle® to rollout upgrades to our commercial online banking, offer Zelle® for P2P payments, implement TransferNow to provide additional for P2P payments, implement TransferNow to provide additional 2 The First of Long Island Corporation Christopher Becker, President and CEO customer flexibility in transferring funds and adding real-time alerts for added security. Technological advances come with cybersecurity risks. We continue to make battling cyber threats a priority, investing in tools to protect and educate our employees and clients. We are also reallocating resources into expanding our lending teams to foster organic growth in our markets. The persistent flat to inverted yield curve makes core relationships more important than ever as an attractive path to increasing profitability. We seek to be the “bank of choice” for small to middle market businesses in our market area. By meeting customer cash management and lending needs, while maintaining rigorous underwriting criteria, we hope to benefit on both sides of the balance sheet. Known for our well underwritten, properly structured loan portfolio, our attention is on developing and retaining customer relationships while upholding historical asset quality. Net Income (in millions) In recent months we bolstered lending and support personnel. Our new middle market team has hit the $41.6 $41.6 ground running, and we look to produce meaningful results in 2020. We are actively recruiting to add resources $35.1 $30.9 $25.9 Net Income (in millions) $35.1 $30.9 $41.6 $41.6 FIVE-YEAR CAGR 12.5% FIVE-YEAR CAGR 12.5% % FIVE CAGR R to existing lending teams that, combined with new end-to-end lending technology implemented in 2019, should be the right combination for success. As part of this strategy, and when it makes sense economically, we anticipate offering back-to-back credit swaps to customers seeking to protect themselves in $25.9 2015 2016 2017 2018 2019 an upward rate environment. These instruments create fee income for the Bank as well as benefit the management of interest rate risk. Total Loans (in millions) $2,545 $2,248 Total Loans (in millions) $3,263 $3,188 $2,950 $3,263 $3,188 $2,950 $2,545 FIVE-YEAR CAGR 12.1% $2,248 2015 2016 2017 2018 2019 FIVE-YEAR CAGR 12.5% FIVE-YEAR CAGR 12.5% % FIVE CAGR R Our focus on fee income in 2019 began paying dividends FIVE-YEAR CAGR 12.1% 2015 2016 2017 2018 2019 as the year progressed. We are optimistic that systematic 2015 2016 2017 2018 2019 Total Assets (in millions) $3,895 $3,510 $3,130 $4,241 $4,098 enhancements will continue driving revenue improvements throughout 2020. Our Investment Management Division offers personalized trust and investment management service as well as competitive investment products. In combination with our retail investment program through our branch network, we recognize a steady source of fee income. We are actively exploring alternatives to enhance these revenues. Total Deposits (in millions) $2,822 $2,609 $2,285 $3,085 $3,144 Total Assets (in millions) $3,895 $3,510 $3,130 $4,241 $4,098 FIVE-YEAR CAGR 8.5% Building recognition by broadening our message and expanding our brand sets the stage for our future. Our marketing team is reassessing strategy to better fulfill our customer needs and Total Deposits (in millions) $2,285 $3,085 $3,144 $2,822 $2,609 FIVE-YEAR CAGR 9.6% 2015 2016 2017 2018 2019 refresh demand for our products and services. We expect to 2015 2016 2017 2018 2019 transform the look and feel of our website, branch locations and FIVE-YEAR CAGR 8.5% 2015 2016 2017 2018 2019 3 2019 Annual Report FIVE-YEAR CAGR 9.6% 2015 2016 2017 2018 2019 Net Income (in millions) $35.1 $30.9 $25.9 $41.6 $41.6 FIVE-YEAR CAGR 12.5% FIVE-YEAR CAGR 12.5% CAGR FIVE R % 2015 2016 2017 2018 2019 Total Assets (in millions) $3,895 $3,510 $3,130 $4,241 $4,098 FIVE-YEAR CAGR 8.5% 2015 2016 2017 2018 2019 Net Income (in millions) $35.1 $30.9 $25.9 $41.6 $41.6 Total Assets (in millions) $3,895 $3,510 $3,130 $4,241 $4,098 Total Loans (in millions) promotional materials to reflect innovation and consistency. Our commitment is unwavering to providing $3,188 $3,263 our customers with intuitive banking solutions combined with excellent customer service. $2,545 $2,950 $2,248 In closing it is most important to recognize the two individuals who were instrumental in transforming The First National Bank of Long Island from a small community bank to a regional bank on Long Island and in New York City. Our long-time President and Chief Executive Officer, Michael N. Vittorio, retired as of year-end 2019. Mike was FIVE-YEAR CAGR 12.1% named President in 2003 when the Bank was less than $800 million in assets with twenty-one branches. His 2016 2015 2019 2018 2017 leadership produced a culture with a focus of integrity and family. He was extremely proud of the relationships he forged with our customers and employees, a key reason the Bank grew to exceed $4 billion in assets with a fifty-two branch network during his tenure. The entire Bank family is grateful to Mike and wish him a long and healthy retirement. Also retiring effective January 1, 2020 after twenty-three years of service was our Senior Executive Vice Total Deposits (in millions) $2,822 $2,609 $2,285 President and Chief Financial Officer, Mark D. Curtis. A trusted member of Mike Vittorio’s team, Mark provided bank-wide $3,085 $3,144 guidance to the Senior Management Team. Mark’s knowledge and work ethic were remarkable, yet his expertise in managing the investment portfolio, tax planning and capital strategies stand out to me. I am gratified that Mark will be available to the Company through 2020 in an advisory capacity. FIVE-YEAR CAGR 9.6% tough act to follow. While wholeheartedly agreeing with that Many constituents remind me that these two individuals are a 2015 2016 2017 2018 2019 conclusion, our organization is spirited and resilient. Our Board Total Loans (in millions) $2,545 $2,248 $2,950 of Directors is dedicated, hardworking and involved. Our management group are experienced and capable leaders. And our employees form that sturdy backbone of our Bank. $3,263 $3,188 We are excited and enthusiastic about the prospects ahead. Thank you to our shareholders for your trust in our Company. We remain steadfast on increasing shareholder value in the years ahead. FIVE-YEAR CAGR 12.5% FIVE-YEAR CAGR 12.5% CAGR FIVE R % FIVE-YEAR CAGR 12.1% 2015 2016 2017 2018 2019 2015 2016 2017 2018 2019 Sincerely, Christopher Becker President and Chief Executive Officer 4 The First of Long Island Corporation Total Deposits (in millions) $2,822 $2,609 $2,285 $3,085 $3,144 FIVE-YEAR CAGR 8.5% FIVE-YEAR CAGR 9.6% 2015 2016 2017 2018 2019 2015 2016 2017 2018 2019 Dear Shareholder, AS YOU KNOW, AFTER SPENDING OVER 17 YEARS AT THE BANK, 2019 was my final year managing The First National Bank of Long Island. As I look back to the beginning of 2002 when total assets were under $800 million and compare it to what we have become today, I am very proud of what the employees accomplished. I care very much for these people, and no CEO could have asked for a better group. In that timeframe, inclusive of the years associated with the Great better group. In that timeframe, inclusive of the years associated with the Great Recession, total assets grew over 400%, we never had credit quality issues, and Recession, total assets grew over 400%, we never had credit quality issues, and the Compound Annual Growth Rate (“CAGR”) on book value per share was 8.2%. the Compound Annual Growth Rate (“CAGR”) on book value per share was 8.2%. These accomplishments speak for themselves. In my opinion, although we have These accomplishments speak for themselves. In my opinion, although we have an unfriendly yield curve, the Bank is in a good place and is well-positioned to an unfriendly yield curve, the Bank is in a good place and is well-positioned to meet the challenges of the future. I am excited Chris Becker has been selected to succeed me. Chris is well qualified to lead our Bank forward. Our future is in capable hands. He understands our proud legacy, our values, and our commitment to customers, employees, and the communities that we serve. With Chris and our leadership team, I am confident the Bank will continue to create shareholder value. On a personal note, I enjoyed getting to know so many individual and institutional stockholders. Thank you for trusting us to be the stewards of your investment. It is a responsibility we took seriously and was always the primary consideration in how we managed our Bank. In closing, I am proud to have managed the Bank “in a measured and disciplined way.” I have no idea where 17½ years have gone. It certainly went by quickly. For me, it was never work; it was a passion. As I conclude my service to the Bank, I am grateful to you, our customers, certainly our employees and the communities we serve for the relationships we created over my tenure. I have so many wonderful memories. It has been an honor and privilege to be your President and Chief Executive Officer. Respectfully, Michael N. Vittorio 5 2019 Annual Report Steven Dubner Landscaping, Inc. Steven Dubner, President, Steven Dubner Landscaping Inc. (left) with Don Manfredonia, Executive Vice President and Senior Business Development Officer 6 The First of Long Island Corporation Five Decades of Relationship Banking with Us When Steven Dubner first started his design and build landscaping company, he knew that in order for the business to grow and thrive, it would need a strong working relationship with a bank. Over 54 years ago, he choose The First National Bank of Long Island because of its reputation for maintaining quality customer relations as well as it having the breadth of products and services he needed to assist him in growing his business. Today, with hard work and the help of the Bank, Steven Dubner Landscaping, Inc. has developed and installed some of the most notable residential and commercial landscaping projects from the High Line and Hudson Yards in New York City to projects across Long Island and the tri-state area. Steven’s business has grown tremendously over the years, now employing over 250 skilled professionals, utilizing state-of-the-art equipment and encompassing a 120-acre nursery, along with ownership in Heritage Farm and Gardens. Just like The First National Bank of Long Island, Steven knows that building and maintaining strong relationships is the key to success. Don Manfredonia, Executive Vice President and Senior Business Development Officer of the Bank’s Management Team, has been developing and maintaining strong customer relationships, such as Steven Dubner Landscaping, for close to four decades. “ We have been fortunate enough to maintain a strong banking relationship with The First National Bank of Long Island. As a customer since the inception of my business 54 years ago, the Bank has always been supportive of my business needs and has never lost its hometown personalized touch. Plus, they are always around to answer any of my financial questions. We are loyal customers of the Bank and their loyalty has been enforced by the support the Bank has provided me over the years.” – Steven Dubner, President 7 2019 Annual Report It’s More of a Personal Relationship For over 50 years, Calico Cottage has been the gold standard for the most delicious fudge anywhere. They understand how important technology is in creating a thriving business. Their manufacturing process and marketing has always been on the cutting edge. It goes without saying that they would be looking to establish a relationship with a bank that has sophisticated and up-to-date technology in banking products. That is why they chose The First National Bank of Long Island as their banking partner. However, that is not all that they were interested in. If you visit their website you will read: “Calico Cottage has a long history of hard work, perseverance, unwavering commitment to quality and an intense dedication to customers. More than anything else, the core foundation of this family-owned business has always been the deep-seated importance of conducting itself with honesty and integrity.” The First National Bank of Long Island has been conducting its business with these exact same principles for almost 100 years. That is why we can say that our relationship with Calico Cottage truly hits the sweet spot. “ Since 1978, The First National Bank of Long Island has had a well-placed faith in the Wurzel family. In our experience, the Bank is beyond honest and has the integrity such that they will always do the right thing. Working with a local bank, it’s more of a personal relationship, so problems are less of an issue and you know you won’t get lost like you might at a large, national bank.” – Mark Wurzel, President and CEO 8 The First of Long Island Corporation Calico Cottage, Inc. Left to right, Andrew Iannarelli, Vice President, Digital Channels; Mark Wurzel, President and Chief Executive Officer of Calico Cottage, Inc.; and Margaret Curran-Rusch, Senior Vice President, Commercial Lending Team Leader 9 2019 Annual Report  Just Kids Early Childhood Learning Center “ Just Kids was very pleased to find a bank partner that understands the funding world that we toil to work with on a daily basis. While our funding comes almost entirely from state and municipal governments, and while the accounts receivable is guaranteed, it is nevertheless an extremely slow payment process. As a result, programs like Just Kids need a bank that understands our funding reality and are willing to work with us during difficult times. FNBLI visited Just Kids with a very impressive group of executives. They took the time to tour our building, to listen to our needs and to assure me of their understanding and commitment to a program that educates children with and without disabilities.” – Steve Held, Executive Director, Just Kids 10 The First of Long Island Corporation Listening to Our Needs At the heart of Just Kids Early Childhood Learning Center is its dedication to community and caring. For almost 40 years, Just Kids has been delivering the highest quality education in an inclusionary environment. They understand the need to develop programs that uniquely support the individual. As a former kindergarten teacher, Steve Held, Executive Director, knows that learning happens best on an individual and personal level. learning happens best on an individual and personal level. When Steve experienced the Middle Market Banking When Steve experienced the Middle Market Banking team’s dedication to personal service and learned team’s dedication to personal service and learned that the heart of The First National Bank of Long that the heart of The First National Bank of Long Island lies in these relationships, he knew they Island lies in these relationships, he knew they would be a good fit and Just Kids became one would be a good fit and Just Kids became one of our newest customers. Chris Hilton and the Bank’s new, highly experienced Middle Market Banking professionals are dedicated to promoting the professionals are dedicated to promoting the Bank’s culture and products. The Team has a reputation for providing responsive service to customers across a broad responsive service to customers across a broad spectrum of industries from Eastern Long Island spectrum of industries from Eastern Long Island to New York City. That level of service, combined to New York City. That level of service, combined with a full complement of digital products and with a full complement of digital products and services, sets this Team apart from the competition. services, sets this Team apart from the competition. They understand the complexities of today’s They understand the complexities of today’s business environment and, most importantly, business environment and, most importantly, the local community of their customers. As a community bank, we use this knowledge As a community bank, we use this knowledge to our advantage by delivering quick and sensible decisions. Left to right: Christopher J. Hilton, Executive Vice President and Chief Lending Officer; Robert Grady, Senior Vice President and Director of Middle Market Lending; and Kenneth B. Ruland II, Senior Vice President and Middle Market Relationship Manager 11 2019 Annual Report Corporate Data Center Standing, from left to right: Brandon Li, IT Assistant; John Marshall, Assistant Vice President; Abhishek Rao, IT Assistant; Daniel Viola, Vice President, Director of Information Technology; and Anthony Mira, IT Specialist Sitting, from left to right: Terry Kan, IT Analyst; and Paul Vasquez, Assistant Vice President 12 The First of Long Island Corporation Digital Innovations Staying on top of the latest technology is important for every organization. The future of banking requires the Bank to provide innovative products and services that will assist our customers in managing their personal and business finances. We have continually been committed to investing in all forms of technology that would enhance both the efficiency of the Bank’s operation as well as enhance our customers’ experience. To this end, in 2019, we completed a new state-of-the-art Corporate Data Center. This new facility positions the Bank for continued growth well into the future by providing enterprise class data with a significant increase in Internet speed and interconnectivity bandwidth. Today’s services such as Online Banking, Mobile Banking and Deposits, Remote Deposit Capture, ATM Deposit Automation and more are available to both our personal and business customers. Our entire banking community will benefit as we continue to upgrade and expand our technology. 13 2019 Annual Report Consolidated Balance Sheets December 31 (in thousands) ASSETS: Cash and cash equivalents Investment securities: Held-to-maturity, at amortized cost (fair value of $5,552) 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 Right-of-use asset—operating leases Bank-owned life insurance Pension plan assets, net Deferred income tax benefit Other assets LIABILITIES: Deposits: Checking Savings, NOW and money market Time, $100,000 and over Time, other Short-term borrowings Long-term debt Operating lease liability Accrued expenses and other liabilities STOCKHOLDERS’ EQUITY Common stock, par value $.10 per share: Authorized, 80,000,000 shares; Issued and outstanding, 23,934,632 and 25,422,740 shares Surplus Retained earnings Accumulated other comprehensive income (loss), net of tax 14 The First of Long Island Corporation 2019 2018 $ 38,968 $ 47,358 — 697,544 697,544 5,504 758,015 763,519 103,879 98,785 1,401,289 1,621,419 59,231 2,431 3,188,249 (29,289) 3,158,960 30,899 40,017 14,343 83,119 18,275 317 15,401 1,281,295 1,809,651 67,710 5,958 3,263,399 (30,838) 3,232,561 40,686 41,267 — 80,925 15,154 3,447 16,143 $4,097,843 $4,241,060 $ 911,978 1,720,599 242,359 269,080 $ 935,574 1,590,341 309,165 249,892 3,144,016 3,084,972 190,710 337,472 15,220 21,317 3,708,735 388,923 362,027 — 16,951 3,852,873 2,393 111,744 274,376 388,513 595 389,108 2,542 145,163 249,922 397,627 (9,440) 388,187 $4,097,843 $4,241,060 Consolidated Statements of Income Year Ended December 31 (dollars in thousands, except per share data) 2019 2018 2017 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 (credit) for loan losses Net interest income after provisions (credit) 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 and employee benefits Occupancy and equipment Other Income before income taxes Income tax expense Net income Earnings per share: Basic Diluted $117,171 $112,784 $ 97,027 15,212 11,467 143,850 18,563 14,494 3,261 7,363 43,681 100,169 33 100,136 2,010 3,214 14 5,373 10,611 37,111 11,904 11,949 60,964 49,783 8,228 12,040 13,413 138,237 7,754 13,484 118,265 12,105 10,452 4,858 8,315 35,730 102,507 (1,755) 104,262 2,175 2,634 (10,406) 7,876 2,279 36,465 11,686 11,755 59,906 46,635 5,062 7,113 5,479 1,345 7,772 21,709 96,556 4,854 91,702 2,090 2,792 (1,866) 5,145 8,161 32,641 10,245 11,966 54,852 45,011 9,889 $ 41,555 $ 41,573 $ 35,122 $ 1.68 $ 1.67 $ 1.64 $ 1.63 $ 1.44 $ 1.43 Cash dividends declared per share $ .70 $ .64 $ .58 15 2019 Annual Report Board of Directors The First of Long Island Corporation Christopher Becker President and Chief Executive Officer The First National Bank of Long Island and The First of Long Island Corporation Louisa M. Ives Managing Director Chilton Trust John J. Desmond Retired Partner-in-Charge of the Long Island Office Grant Thornton LLP Eric J. Tveter Chairman of ETC Ventures LLC and Veloce Esports Limited Peter Quick Retired Stephen V. Murphy President S.V. Murphy & Co. (investment banking) Paul T. Canarick President & Principal Paul Todd, Inc. (construction company) Milbrey Rennie Taylor Retired Executive Producer of CBS News Howard Thomas Hogan Jr., Esq. Director Hogan & Hogan (attorney at law) Michael N. Vittorio Former President and Chief Executive Officer The First National Bank of Long Island and The First of Long Island Corporation (Retired 12/31/19) 16 The First of Long Island Corporation Denise Strain Retired Managing Director of Citigroup Inc. Alexander L. Cover Business & Management Consultant Retired Partner of Ernst & Young LLP 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) 2019 Annual Report Executive Officers The First National Bank of Long Island Richard P. Perro Executive Vice President and Chief Retail Officer Christopher Becker President and Chief Executive Officer Donald L. Manfredonia Executive Vice President and Senior Business Development Officer Janet T. Verneuille Executive Vice President and Chief Risk Officer Anne Marie Stefanucci Executive Vice President and Chief Credit Officer Jay P. McConie Executive Vice President, Chief Financial Officer and Cashier Christopher J. Hilton Executive Vice President and Chief Lending Officer 17 2019 Annual Report Branch Network in Key Markets MANHATTAN QUEENS 232 Madison Avenue New York, NY 10016 (212) 213-8111 Branch Manager: Lisa Reardon 225 Broadway Suite 703 New York, NY 10007 (212) 693-1515 Astoria 23-25 31st Street Astoria, NY 11105 (929) 429-3500 Branch Manager: Elizabeth Traitouros Bay Terrace 23-88A Bell Boulevard Bayside, NY 11360 (929) 409-6100 Branch Manager: Jennifer Crowe College Point 132-11A 14th Avenue College Point, NY 11356 (718) 215-7500 Branch Manager: Indira Miller Howard Beach 159-14 Cross Bay Boulevard Howard Beach, NY 11414 (718) 835-1962 Branch Manager: Salvatore Giunta Little Neck 254-57 Horace Harding Expressway Little Neck, NY 11362 (929) 448-2200 Branch Manager: Susan Placella Whitestone 19-01 Utopia Parkway Whitestone, NY 11357 (718) 279-1206 Branch Manager: Joanne Bosco BROOKLYN Bay Ridge 9202 4th Avenue Brooklyn, NY 11209 (646) 795-5000 Branch Manager: Yajaira Estevez Cobble Hill 227 Smith Street Brooklyn, NY 11231 (718) 942-3777 Branch Manager: Wilona Chambers Fort Hamilton Pkwy 559 86th Street Brooklyn, NY 11209 (718) 942-6000 Branch Manager: JoAnn Loddo LONG ISLAND Babylon 42 Deer Park Avenue Babylon, NY 11702 (631) 422-1700 Branch Manager: Colleen Vogelsberg Bayville 282 Bayville Avenue Bayville, NY 11709 (516) 628-1288 Branch Manager: Melanie Chopay Bellmore 408 Bedford Avenue Bellmore, NY 11710 (516) 679-6200 Branch Manager: Nicole Marques Bohemia 30 Orville Drive Bohemia, NY 11716 (631) 218-2500 Branch Manager: Brian Gottesman Cold Spring Harbor 147 Main Street Cold Spring Harbor, NY 11724 (631) 367-3600 Branch Manager: Diana Mooers Deer Park 60 East Industry Court Deer Park, NY 11729 (631) 243-2600 Branch Manager: Joanne Maiorana-Davis East Islip 151 West Main Street East Islip, NY 11730 (631) 277-2936 Branch Manager: Julie Freund East Meadow 1975 Hempstead Turnpike East Meadow, NY 11554 (516) 357-7200 Branch Manager: Vincenza Vitale-Puccio East Setauket 234 Main Street (Route 25A) East Setauket, NY 11733 (631) 564-1000 Branch Manager: Kathleen Crowe Farmingdale 22 Allen Boulevard Farmingdale, NY 11735 (631) 753-8888 Branch Manager: Paula Lavrado 18 The First of Long Island Corporation Hewlett 1301 Broadway Hewlett, NY 11557 (516) 295-1974 Branch Manager: Audrey Rieman Hicksville 106 Old Country Road Hicksville, NY 11801 (516) 932-7150 Branch Manager: Lisa Wilton Locust Valley 108 Forest Avenue Suite 2 Locust Valley, NY 11560 (516) 671-1549 Branch Market Manager: Elizabeth Materia Manhasset 572 Plandome Road Manhasset, NY 11030 (516) 365-5010 Branch Manager: Joseph Gueli Garden City 1050 Franklin Avenue Suite 100 Garden City, NY 11530 (516) 742-6262 Branch Manager: Carol Kolesar Glen Head 10 Glen Head Road Glen Head, NY 11545 (516) 674-6650 Branch Manager: Michelle Moreira-Jodice Great Neck 536 Northern Boulevard Great Neck, NY 11021 (516) 482-6666 Branch Manager: Christine Pryce Huntington 253 New York Avenue Huntington, NY 11743 (631) 427-4143 Branch Market Manager: Colleen Hatt-De Stefano Lake Success 3000 Marcus Avenue Lake Success, NY 11042 (516) 775-3133 Branch Market Manager: Patricia DeMasi Lindenhurst 1 East Montauk Highway Lindenhurst, NY 11757 (631) 956-3800 Branch Manager: Mark Quinones Greenlawn 76 Broadway Greenlawn, NY 11740 (631) 754-0660 Branch Manager: Laura David Greenvale 7 Glen Cove Road Greenvale, NY 11548 (516) 621-8811 Branch Manager: Christina Marotta Hauppauge 330 Motor Parkway Suite 100 Hauppauge, NY 11788 (631) 952-2900 Branch Manager: JoAnn Diamond Massapequa 574 Broadway Massapequa, NY 11758 (516) 795-0100 Branch Manager: Linda Rowse Massapequa Park 1049 Park Boulevard Massapequa Park, NY 11762 (516) 795-2265 Branch Manager: Paul Jervis Melville 555 Broad Hollow Road Suite 001 Melville, NY 11747 (631) 752-1000 Branch Manager: Anthony Cassero Merrick 1810 Merrick Avenue Merrick, NY 11566 (516) 771-6000 Branch Market Manager: Joseph Nappi New Hyde Park 243 Jericho Turnpike New Hyde Park, NY 11040 (516) 328-3100 Branch Manager: Susan Costabile Northport 711 Fort Salonga Road Northport, NY 11768 (631) 261-4000 Branch Market Manager: Mary Sullivan Northport Village 105 Main Street Northport, NY 11768 (631) 261-0331 Branch Manager: Vincent Bartilucci Oceanside 2933 Long Beach Road Oceanside, NY 11572 (516) 536-3989 Branch Manager: Carmela Cacciuottolo Old Brookville 24-Hour Drive-Thru ATM 209 Glen Head Road Old Brookville, NY 11545 Patchogue 392 East Main Street Patchogue, NY 11772 (631) 289-1189 Branch Manager: Frances Koslow-Leitch Point Lookout 26A Lido Boulevard P.O. Box 173 Point Lookout, NY 11569 (516) 431-3144 Branch Manager: Carmen Buzzetta Port Jefferson Station Davis Professional Park 5225 Nesconset Highway Building 4, Suite 21 Port Jefferson Station, NY 11776 (631) 928-4411 Branch Manager: John J. Rate, Jr. Rockville Centre 310 Merrick Road Rockville Centre, NY 11570 (516) 763-5533 Branch Market Manager: Linda Roldan Roslyn Heights 130 Mineola Avenue Roslyn Heights, NY 11577 (516) 621-1900 Branch Manager: Susan Fletcher Sayville 215 West Main Street Sayville, NY 11782 (631) 472-7000 Branch Manager: John Robilotto Sea Cliff 299 Sea Cliff Avenue Sea Cliff, NY 11579 (516) 671-7868 Branch Manager: Janice Valentine Smithtown 285 Middle Country Road Suite 104 Smithtown, NY 11787 (631) 265-0200 Branch Manager: Stephen Pedersen Valley Stream 127 East Merrick Road Valley Stream, NY 11580 (516) 825-0202 Branch Manager: Karen Johnson Woodbury 800 Woodbury Road Suite M Woodbury, NY 11797 (516) 364-3434 Branch Manager: Marianne Plummer Coming Soon: Riverhead 140 East Main Street Riverhead, NY 11901 19 2019 Annual Report GENERAL COUNSEL Schupbach, Williams & Pavone LLP SEC COUNSEL Luse Gorman, PC INDEPENDENT AUDITORS Crowe LLP ANNUAL REPORT ON FORM 10-K A copy of the Corporation’s annual report on Form 10-K for 2019 may be obtained without charge upon written request to Jay P. McConie, 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 1 State Street, 30th Floor New York, New York 10004 (212) 509-4000 cstmail@continentalstock.com ANNUAL MEETING NOTICE The Annual Meeting of Stockholders will be held at The Mansion at Oyster Bay, 1 Southwoods Road, Woodbury, New York on Tuesday, April 21, 2020 at 10:00 A.M. Corporate Information OFFICERS THE FIRST OF LONG ISLAND CORPORATION Christopher Becker President and Chief Executive Officer William Aprigliano, CPA Senior Vice President and Chief Accounting Officer Robert Colosa Senior Vice President and Chief Auditor Maria Doyle, CPA Senior Vice President and Controller Christopher Hilton Executive Vice President Jay P. McConie, CPA Executive Vice President, Chief Financial Officer and Treasurer Richard P. Perro Executive Vice President Anne Marie Stefanucci Executive Vice President Janet T. Verneuille, CPA Executive Vice President and Chief Risk Officer Pauline Wimmer Corporate Secretary OFFICERS THE FIRST NATIONAL BANK OF LONG ISLAND Christopher Becker President and Chief Executive Officer Christopher Hilton Executive Vice President and Chief Lending Officer Donald L. Manfredonia Executive Vice President and Senior Business Development Officer Jay P. McConie, CPA Executive Vice President, Chief Financial Officer and Cashier Richard P. Perro Executive Vice President and Chief Retail Officer Anne Marie Stefanucci Executive Vice President and Chief Credit Officer Janet T. Verneuille, CPA Executive Vice President and Chief Risk Officer SENIOR VICE PRESIDENTS Tanweer Ansari, Esq. Chief Compliance Officer William Aprigliano, CPA Chief Accounting Officer Jane Carmody Investment Management Division Managing Director Dina Cascione, CPA Financial Reporting Manager Robert Colosa Chief Auditor Margaret M. Curran-Rusch Commercial Lending Team Leader Jose Diaz Technology and Operations Officer Maria Doyle, CPA Controller Brian Emigholz Commercial Lending Team Leader Rose Florio-Campanaro Retail Loan Portfolio Manager Robert Grady Director of Middle Market Lending Susan J. Hempton Director of Human Resources Laura C. Ierulli Director of Marketing Kelly McCormack Credit Department Manager Cathy C. O’Malley Branch District Manager Richard O’Rourke Commercial Lending Team Leader Jane F. Reed Senior Commercial Lending Officer Kenneth B. Ruland II Middle Market Relationship Manager Allison Stansfield Branch District Manager Leonardo Tavera Corporate Planning Officer Antoinette Valente Branch District Manager 20 The First of Long Island Corporation Business Advisory Board Joseph R. Albanese, Esq. Managing Partner Albanese & Albanese LLP Vincent A. Albanese, Esq. Partner Albanese & Albanese LLP Richard Arote, Sr. Chief Executive Officer ADE Systems, Inc. Barry E. Berg, CPA Managing Partner Nussbaum, Berg, Klein & Wolpow CPAs LLP Frank J. DellaFera President Fera Pharmaceuticals, LLC Bernard Esquenet Chief Executive Officer The Ruhof Corporation Kevin J. Harding, Esq. Partner Harding and Burke, PLLC Carmine R. Inserra Executive Director Cushman & Wakefield James D. Kiley, Esq. Partner Kiley, Kiley, & Kiley, PLLC John Martinelli Principal Owen Petersen & Co., LLP Susan Hirschfeld Mohr President J.W. Hirschfeld Agency, Inc. John G. Passarelli, M.D. President Sight M.D. Arthur C. Schupbach, Esq. Partner Schupbach, Williams & Pavone LLP Frank Shahery Director, Marketing Convermat Corporation Lloyd Straus President and Chief Executive Officer Anesthesia Business Group H. Craig Treiber Chief Executive Officer Treiber Enterprises, LLC Sal J. Turano President Abstracts Incorporated Candy Udell President London Jewelers Mark Udell Chief Executive Officer London Jewelers Mark Wurzel President and Chief Executive Officer Calico Cottage, Inc. 10 Glen Head Road Glen Head, NY 11545 516.671.4900 www.fnbli.com 

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