2022 Annual Report
Celebrating
95 Years
2022
ANNUAL
REPORT
Making History
As First National Bank LI turns the page on its 95th Anniversary Celebration, we continue our
legacy of doing the right thing to help our customers, employees and shareholders succeed
while being socially accountable to the communities we serve. A true financial partner, 1N is
committed to making a meaningful impact on these stakeholders through our ethical intent
and strong business practices. We believe these efforts create long-term, sustainable value
for our shareholders, clients and employees.
About Us
The First of Long Island Corporation (Nasdaq: FLIC) is the
parent company of The First National Bank of Long Island, a
local bank founded in 1927 in Glen Head, New York. Through
our branch network branded as First National Bank LI, the
Bank focuses on business and consumer needs on Long
Island and in New York City. We offer a broad set of lending,
deposit, investment and digital products. First National Bank
LI is known for its culture of delivering extraordinary service
and a “Customer First” banking experience to small and
middle market businesses, professional service firms, not-for-
profits, municipalities and consumers. The Bank’s tagline “Go
First. Go Far.® “ communicates the benefits of relationship
service and our employees’ commitment to helping
customers reach their financial goals. For more information
about the Bank and Corporation visit fnbli.com.
1 Celebrating 95 Years
2022 Annual Report
1
We had an incredible year!
Total Assets
($ in millions)
5.2%
YOY Increase
Total Loans
($ in millions)
6.7%
YOY Increase
Total Deposits
($ in millions)
4.5%
YOY Increase
$4,069
$4,282
2021
2022
$3,105
$3,312
2021
2022
$3,315
$3,465
2021
2022
2 Celebrating 95 Years
$2.04
Earnings Per Share
$46.9
Million
Net Income
12.13%
Return on Equity
1.11%
Return on Assets
$16.24
Book Value Per Share
$0.82
Cash Dividends Per Share
SELECTED
FINANCIAL
DATA
Income Statement Data
2022
2021
2020
2019
2018
Interest Income
Interest Expense
$
134,210
$
122,959
$
131,216
$
143,850
$
138,237
18,497
16,152
29,188
43,681
35,730
(dollars in thousands, except per share data)
Net Interest Income
115,713
106,807
102,028
Provision (Credit) for Credit Losses
Net Income
Per Share Data
Basic Earnings
Diluted Earnings
Cash Dividends Declared
Dividend Payout Ratio
2,331
46,932
(2,573)
43,089
3,006
41,203
$
2.05
$
1.82
$
1.73
$
2.04
1.81
.82
40.20%
.78
43.09%
1.72
.74
100,169
33
41,555
102,507
(1,755)
41,573
$
1.68
1.67
.70
1.64
1.63
.64
43.02%
41.92%
39.26%
Book Value
$
16.24
$
17.81
$
17.11
$
16.26
$
15.27
Balance Sheet Data at Year End
Total Assets
Loans
$ 4,281,511
$ 4,068,789
$ 4,069,141
$ 4,097,843
$ 4,241,060
3,311,733
3,105,036
3,033,454
3,188,249
3,263,399
Allowance for Credit Losses
31,432
29,831
33,037
29,289
30,838
Deposits
Borrowed Funds
Stockholders’ Equity
Average Balance Sheet Data
Total Assets
Loans
3,464,634
3,315,245
3,321,588
3,144,016
3,084,972
411,000
364,536
311,322
413,812
306,097
407,118
528,182
389,108
750,950
388,187
$ 4,247,052
$ 4,151,577
$ 4,140,867
$ 4,194,355
$ 4,177,341
3,276,589
2,976,061
3,110,512
3,217,530
3,177,519
Allowance for Credit Losses
30,604
31,300
33,180
30,080
34,960
Deposits
Borrowed Funds
Stockholders’ Equity
Financial Ratios
3,536,709
3,425,976
3,257,317
3,276,699
3,168,348
289,584
281,191
457,939
494,785
623,587
386,839
416,885
393,662
391,613
374,876
Return on Average Assets (ROA)
Return on Average Equity (ROE)
Average Equity to Average Assets
1.11%
12.13%
9.11%
1.04%
10.34%
10.04%
1.00%
10.47%
9.51%
.99%
10.61%
9.34%
1.00%
11.09%
8.97%
2 Celebrating 95 Years
2022 Annual Report 3
A MESSAGE
FROM OUR
PRESIDENT
AND CEO
Fellow
Shareholders
It was a year of celebration. The First National Bank
building housing. It was inspirational to see their
of Long Island commemorated its 95th year as an
enthusiasm. I want to thank the entire First National
independent community bank on October 1, 2022.
Bank LI team for meeting our mission of continually
Throughout the year on the anniversary date of each
doing the right things to help our customers,
branch opening, we recognized the Bank’s history.
employees and shareholders succeed while being
We thanked our local markets for their loyalty by
socially accountable to the communities we serve.
giving back under a “Community First” volunteerism
program. Our employees provided over 1,000 hours
of their time to aid local charities in fighting food
insecurity, helping seniors, caring for animals and
It was a year of success. Record setting net income
and earnings per share of $46.9 million and $2.04,
respectively, led the way. Returns on average assets
and average equity were strong at 1.11% and 12.13%,
As First National Bank LI turns the page on its 95th Anniversary
Celebration, enjoy highlights of client appreciation events across
the Branch network.
4 Celebrating 95 Years
Bay Terrace
respectively. We increased our dividend per share
housed in several Glen Head locations throughout
by 5.1% and it now stands at $0.21 per quarter. Our
our 95 years. In 2022, we sold five buildings in Glen
dividend yield at year-end 2022 was 4.7%. Average
Head and consolidated our operations, corporate
total assets, loans and deposits all had gains with
headquarters and Melville Branch at 275 Broad
the key category of average noninterest-bearing
Hollow Road in Melville to support our growth more
checking deposits increasing 7.2%. Checking
efficiently. We are forever grateful to the Glen Head
deposits averaged over 40% of total deposits during
community for being such a gracious host. It is truly a
2022 and ended the year at over 38%. We believe our
special community.
culture of building relationship business by keeping
customers first produces these types of results.
It was a year of progress. The Bank opened its
doors in 1927 as The First National Bank of Glen
Head. Our Main Office Branch has been in its Glen
“ ...keeping customers first produces
these types of results.”
Head location for the Bank’s entire history and
It was a year of expansion. Having previously hired
remains there today. Most of our operations were
talented bankers in our Port Jefferson and Bohemia
markets, it was time to expand their branches
from tired commercial banking offices to modern
full-service branches. We moved into our new
Port Jefferson Village location at 450 Main Street
● Manhattan ● Brooklyn ● Queens ● Nassau County ● Suffolk County
Astoria
Babylon
Bay Ridge
4 Celebrating 95 Years
2022 Annual Report 5
Bayville
Bohemia
Cobble Hill
East Hampton
Net Income
($ in millions)
6.0%
Five Year CAGR
$41.2
$43.1
$46.9
Cash Dividends
(per share)
7.2%
Five Year CAGR
$0.74
$0.78
$0.82
2020
2021
2022
2020
2021
2022
in November of 2022. Our new Bohemia location
hire some of the best bankers in those markets to get
at 4110 Veterans Memorial Highway is nearing
us off to a quick start.
completion. As First National Bank LI, we were
missing a presence on the East End of the island.
We corrected that oversight by establishing an East
Hampton Branch in late 2021 and a Southampton
Branch in early 2022. Combined with our Riverhead
Branch opened in 2020, we are making a name for
ourselves on the East End. We have been fortunate to
It was a year of recognition. We are proud of several
noteworthy achievements in 2022. The KBW Bank
Honor Roll recognizes banks with more than $500
million in total assets that have reported consecutive
increases in annual earnings per share in each of the
past ten years. Piper Sandler’s Sm-All Star recognizes
East Islip
East Meadow
East Setauket
Garden City
Howard Beach
Huntington
Lake Success
6 Celebrating 95 Years
“ The First of Long Island
Corporation is listed in the top
200 exchange-traded U.S.
banks and thrifts.”
companies with a market cap below $2.5 billion that
out-perform the industry in growth, profitability, credit
quality and capital strength. The First of Long Island
Corporation made both lists in 2022. The Company
also was included among the top 50 performers with
total assets between $1 billion and $5 billion by Bank
Director Magazine. Finally, The First of Long Island
Corporation is listed in the top 200 exchange-traded
U.S. banks and thrifts, coming in at number 177.
A challenging landscape. The Federal Reserve’s
The newly relocated Port Jefferson Branch offers a 24-hour ATM with
on-site parking within walking distance of village attractions.
increases in interest rates have not been at this pace
in over 40-years, putting downward pressure on the
Bank’s net interest margin. Tightening monetary
policy limits liquidity alternatives and reduces funding
flexibility. A political and regulatory message of
removing so called “junk fees” is limiting the Bank’s
ability to charge for the fundamental services we
provide. At the same time, blanketing regulatory
● Manhattan ● Brooklyn ● Queens ● Nassau County ● Suffolk County
Garden City
Glen Head
Great Neck
Hewlett
Hicksville
6 Celebrating 95 Years
2022 Annual Report 7
Lake Success
Lindenhurst
Locust Valley
Madison Avenue
oversight continues to pile on operational costs
related to third-party management, information
security, environmental, social and governance (“ESG”)
requirements and climate change, among other areas,
no matter an institution’s size. That being said, we have
a valuable franchise with dedicated constituents. Our
credit quality remains strong as we maintain a culture of
conservative underwriting and our leverage capital ratio
of 9.8% provides ample support for the future.
With the introduction of tap-to-pay technology and removing domestic
purchase transaction fees, a new card design is now available to
promote debit card utilization.
“ We are moving forward
while staying true to our history
of strong fundamentals that
deliver results.”
A Look Forward. Our team is dedicated to the
endurance of this 95-year-old institution, focusing on
strategic evolution to match the demand for a more
modern, commercially focused community bank. Our
growing banking teams are bringing in relationships,
our new branding is being complimented as fresh
and inviting, our new website and social media
presence continue to grow in terms of visits and
impressions, our commitment to technology upgrades
and cybersecurity investments are recognized by
our employees and customers, and we are being
acknowledged in the industry for our successes. We
are moving forward while staying true to our history of
strong fundamentals that deliver results.
Thanks to the customers of First National Bank LI
for allowing us to serve you and our communities.
I thank our Board of Directors for their support of
Manhasset
Massapequa
Merrick
Riverhead
Rockville Centre
Sayville
Smithtown
8 Celebrating 95 Years
Earnings Per Share
7.4%
Five Year CAGR
$1.72
$1.81
Credit Quality
($ in thousands)
● Nonaccrual ● Past Due ● Modified
$2.04
$3,359
2020
2021
2022
$1,122
$2,249
$1,422
$815
2020
$1,235
$460
$554
2021
*Nonaccrual loans were $0 in 2022.
$1,230*
$750
$480
2022
the Company’s strategic initiatives. Their oversight
To our shareholders, the Board of Directors and
and ongoing strong corporate governance centers
Management Team appreciate your investment in the
on stockholder returns. Thanks to our staff for all the
Company and remain dedicated to doing the right
outstanding accomplishments in 2022. They know
things for you.
when you Go First you Go Far. I am fortunate to be
surrounded by tremendous talent and people that
Sincerely,
make “coming to the office” a pleasure.
Christopher Becker
President and Chief Executive Officer
● Manhattan ● Brooklyn ● Queens ● Nassau County ● Suffolk County
Northport
Patchogue
Port Jefferson
8 Celebrating 95 Years
2022 Annual Report 9
Smithtown
Valley Stream
Whitestone
Woodbury
CUSTOMER
FIRST
Let’s connect and see
how far you can go.
Relationship business and access to decision-makers
are advantages of choosing First National Bank LI as a
banking partner. The Bank is focused on strengthening
its ability to meet and service clients across the market
area through an optimized branch network and enhanced
digital presence.
New Places. Familiar Faces.
1N celebrated opening two new East End locations
in East Hampton and Southampton, bringing First
National Bank LI’s network to 41 Branches across Suffolk,
Nassau, Brooklyn, Queens and Manhattan. Committed
to providing relationship service from expert talent, the
Bank continues to engage local banking professionals to
grow its commercial and retail teams.
Top: Customers joined Bank leadership in East Hampton to cut the
ribbon on First National Bank LI’s first South Fork location.
Bottom: Elected Village and Town officials cut the ribbon at the
Southampton Branch, which is located within walking distance
of Town Hall.
10 Celebrating 95 Years
Visit the new fnbli.com
Website Refresh. User-friendly functionality.
A website homepage redesign will offer an intuitive
user experience at fnbli.com, featuring streamlined
navigation to make it easier for clients to explore the
products and services they need. The new functionality
will help facilitate lead generation through the enhanced
promotion of products and digital features coming
in 2023. A new “Meet The Bankers” video series
will showcase our #1NTeam, and put a face to the
relationship service 1N is known for. A new Professional
Services section will cater to professionals by industry,
providing information on banking solutions to best fit
their needs.
Enhancing the Branch Experience
Branches across the network continue to receive
upgrades to improve brand exposure. Clients can
anticipate a more modern experience as they visit our
Astoria
Cobble Hill
branches. We still like tradition, so business by the
Howard Beach
Huntington
fireplace is still evident in many locations.
10 Celebrating 95 Years
2022 Annual Report
11
COMMUNITY
FIRST
Invested in
Our Community
Celebrating 95 years of making an impact, the Bank has long held
an ethical standard of service and good will. A mix of monetary
donations in addition to hands-on volunteerism is at the heart of this
commitment, allowing for meaningful connection and equity built
between employees and neighbors in the communities we serve.
A few of the many Community First
initiatives across the branch network.
➊ Queens: Girl Scouts of Bay Terrace
Team members spent the day with the Girl Scouts of Bay Terrace,
teaching children about savings accounts and educational tips to help
the scouts build a financial foundation for growth. Afterward, our team
led the troop to our Bay Terrace Branch for a tour and to learn how
banks help to keep their money safe.
➋ Brooklyn: City Harvest Food Pantry
City Harvest works on a mission of fighting food insecurity in New
York City, which remains near historic levels. Team members joined
volunteers from across the city, assisting with unloading boxes
and cases of food delivered to a local church. Quickly stocking and
reorganizing, the team handed out chicken, rice, cereal, peanut
butter, beans and fresh fruit, along with paper goods, to over 300
people seeking support.
12022 Data based on lending data, volunteerism efforts and philanthropic contributions
12 Celebrating 95 Years
Our Impact 1
1,025+
Hours of Volunteerism
Includes hands-on service and
professional guidance
144
Organizations touched by 1N
Through volunteerism and monetary support
173
Community Development
& Reinvestment Loans Issued
$33.5
Million
Extended in Community Development
& Reinvestment Lending
➌ Nassau: Oceanside Senior Center
The Town of Hempstead’s Oceanside Senior Center
offers weekly enrichment and engagement to dozens
of local seniors. Volunteers from the Bank spent time
with area residents enjoying an afternoon of food and
good company. Our team greeted seniors and listened to
stories of their lives, joined the group for exercise classes
and enjoyed an afternoon dance party.
➍ Suffolk: 9-1-1 Veterans
9-1-1 Veterans is a small not-for-profit organization
making a big impact by providing emergency financial
assistance to Long Island’s active and veteran service
members. For Thanksgiving, 1N team members
volunteered alongside 9-1-1 Veterans in Lindenhurst at
the 10th Annual Turkeys for Vets meal giveaway. Five
hundred turkeys were donated with all the trimmings,
benefiting local Veterans and active service families
across Long Island.
➎ Suffolk: Habitat for Humanity
Habitat for Humanity of Long Island has been building
a future for local families for decades. 1N was proud to
sponsor a Build Day in Riverside, helping a mother and
her family own their first home. Putting hammers, saws
and ladders in motion, the team worked to install vinyl
siding, sheets of insulation, soffit and more.
➊
➋
➌
➍
➎
12 Celebrating 95 Years
2022 Annual Report
13
Consolidated Balance Sheets
December 31 (dollars in thousands)
Assets:
Cash and cash equivalents
Investment securities available-for-sale, at fair value
Loans:
Commercial and industrial
SBA Paycheck Protection Program
Secured by real estate:
Commercial mortgages
Residential mortgages
Home equity lines
Consumer and other
Allowance for credit 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
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, 22,443,380 and 23,240,596 shares
Surplus
Retained earnings
Accumulated other comprehensive income (loss), net of tax
14 Celebrating 95 Years
2022
2021
$
74,178
673,413
$
43,675
734,318
108,493
–
90,386
30,534
1,916,493
1,240,144
45,213
1,390
3,311,733
(31,432)
1,736,612
1,202,374
44,139
991
3,105,036
(29,831)
3,280,301
3,075,205
26,363
31,660
23,952
110,848
11,049
31,124
18,623
21,524
37,523
8,438
107,831
19,097
3,987
17,191
$
4,281,511
$
4,068,789
$
1,324,141
1,661,512
478,981
$
1,400,998
1,685,410
228,837
3,464,634
–
411,000
25,896
15,445
3,315,245
125,000
186,322
11,259
17,151
3,916,975
3,654,977
2,244
78,462
348,597
429,303
(64,767)
2,324
93,480
320,321
416,125
(2,313)
364,536
413,812
$
4,281,511
$
4,068,789
Consolidated Statements of Income
Year Ended December 31 (dollars in thousands, except per share data)
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 credit losses
2022
2021
2020
$
116,352
$
106,266
$
109,492
9,795
8,063
8,162
8,531
11,873
9,851
134,210
122,959
131,216
7,180
5,296
1,207
4,814
4,414
5,712
1,427
4,599
9,097
10,977
1,574
7,540
18,497
16,152
29,188
115,713
2,331
106,807
(2,573)
102,028
3,006
Net interest income after provision (credit) for credit losses
113,382
109,380
99,022
Noninterest income:
Bank-owned life insurance
Service charges on deposit accounts
Net gains on sales of securities
Other
Noninterest expense:
Salaries and employee benefits
Occupancy and equipment
Loss on disposition of premises and fixed assets
Debt extinguishment
Other
Income before income taxes
Income tax expense
Net income
Earnings per share:
Basic
Diluted
Cash dividends declared per share
3,017
3,157
–
6,242
2,399
2,925
1,104
6,146
2,313
2,962
2,556
6,255
12,416
12,574
14,086
41,096
13,407
553
–
12,523
39,753
15,338
–
1,021
12,535
37,288
12,370
–
2,559
11,364
67,579
68,647
63,581
58,219
11,287
53,307
10,218
49,527
8,324
46,932
$
43,089
$
41,203
$
2.05
2.04
0.82
$
1.82
1.81
0.78
1.73
1.72
0.74
$
$
14 Celebrating 95 Years
2022 Annual Report
15
Seamus Doyle
South Fork Team Leader –
Commercial Lending
Brian Emigholz
Nassau Team Leader –
Commercial Lending
John Fitzpatrick
Senior CRE Lending Officer
Rose Florio-Campanaro
Loan Operations Manager
Thomas Ford
Senior Relationship Manager
Robert Grady
Director of Middle Market Lending
Kelly McCormack
Credit Department Manager
Richard O’Rourke
CRE Team Leader
Jane F. Reed
Senior Commercial Lending Officer
Angela Reese
Branch District Manager
Kenneth B. Ruland III
Middle Market Banking
Matthew Ruppert
Senior Credit Officer
Shannon Shakespeare
Chief Human Resources Officer
Thomas Sullivan
Middle Market Banking
Leonardo Tavera
Corporate Planning Officer
Antoinette Valente
Branch District Manager
Officers
Christopher Becker
President & Chief Executive Officer of the
Corporation and the Bank
Executive Vice Presidents
Tanweer S. Ansari, Esq
Internal Counsel &
Chief Compliance Officer
Christopher Hilton
Chief Lending Officer
Jay P. McConie, CPA
Chief Financial Officer, Treasurer of the
Corporation and Cashier of the Bank
Richard P. Perro
Chief Retail Officer
Susanne Pheffer
Chief Information Officer
Michael J. Spolarich
Chief Credit Officer
Janet T. Verneuille, CPA
Chief Risk Officer
Senior Vice Presidents
William Aprigliano, CPA
First Senior Vice President
Chief Accounting Officer and Controller
Diane Beck
Director of Program Management
Bruce Bradley
Middle Market Banking
Jaqueline Brown
Branch District Manager
Robert Colosa
Chief Auditor
Margaret M. Curran-Rusch
Suffolk Team Leader –
Commercial Lending
Maria Doyle, CPA
Director of Financial Reporting and Controls
The First of Long
Island Corporation and
The First National Bank
of Long Island
Board of Directors
Christopher Becker
President & Chief Executive Officer of
The First National Bank of Long Island and
The First of Long Island Corporation
Paul T. Canarick
President & Principal of
Paul Todd, Inc., (Construction Company)
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 Thornton LLP
Edward J. Haye
Partner of Cullen & Dykman LLP
Louisa M. Ives
Managing Director of
Chilton Trust
Stephen V. Murphy
President of
S.V. Murphy & Co. (Investment Banking)
Peter Quick
Retired
Denise Strain
Retired Managing Director of
Citigroup, Inc.
Milbrey Rennie Taylor
Retired Executive Producer of CBS News
Walter C. Teagle III
Chairman of
The First of Long Island Corporation and
The First National Bank of Long Island
President of
Teagle Management, Inc.
(Private Investment Firm)
Chairman Emeritus and Director of
The Teagle Foundation, Inc.
Eric J. Tveter
Chairman of ETC Ventures LLC
Senior Advisor to Arthur D. Little,
Communications Equity Associates,
and The Roda Group
16 Celebrating 95 Years
Business Advisory Board
Vincent A. Albanese
Partner
Albanese & Albanese LLP
Barry Berg, CPA
Managing Partner
Nussbaum, Yates, Berg, Klein
& Wolpow LLP
Frank J. DellaFera
President & CEO
Fera Pharmaceuticals, LLC
Bernard Esquenet
CEO
The Ruhof Corporation
Kevin J. Harding
Partner
Harding and Burke, PLLC
Our Branches
Manhattan
232 Madison Avenue
Brooklyn
Bay Ridge
Cobble Hill
Queens
Astoria
Bay Terrace
College Point
Howard Beach
Whitestone
Carmine Inserra
Executive Director
Cushman & Wakefield
James D. Kiley
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.
Managing Partner
Sight Medical Doctors, PLLC
Arthur C. Schupbach
Partner
Schupbach, Williams & Pavone LLP
Frank Shahery
Director of Marketing
Convermat Corporation
H. Craig Treiber
CEO
Treiber Family Enterprises
Sal J. Turano
President
Abstracts Incorporated
Candy Udell
President
London Jewelers
Mark Udell
CEO
London Jewelers
Mark Wurzel
President
Calico Cottage Inc.
Nassau County
Suffolk County
Bayville
East Meadow
Garden City
Glen Head
Great Neck
Greenvale
Hewlett
Hicksville
Lake Success
Locust Valley
Manhasset
Massapequa
Merrick
Rockville Centre
Roslyn Heights
Valley Stream
Woodbury
Babylon
Bohemia
East Hampton
East Islip
East Setauket
Hauppauge
Huntington
Lindenhurst
Melville
Northport
Patchogue
Port Jefferson
Riverhead
Sayville
Smithtown
Southampton
Corporate Office
The First of Long Island Corporation
275 Broad Hollow Road
Suite 200
Melville, NY 11747
(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
www.continentalstock.com