Great Relationships
Strong Fundamentals
2023 Annual Report
Selected Financial Data(dollars in thousands, except per share data)Income Statement Data20232022202120202019Interest Income$155,483 $134,210 $122,959 $131,216 $143,850 Interest Expense 68,618 18,497 16,152 29,188 43,681 Net Interest Income 86,865 115,713 106,807 102,028 100,169 Provision (Credit) for Credit Losses (326) 2,331 (2,573)3,006 33 Net Income 26,239 46,932 43,089 41,203 41,555 Per Share DataBasic Earnings$1.16 $2.05 $1.82 $1.73 $1.68 Diluted Earnings 1.16 2.04 1.81 1.72 1.67 Cash Dividends Declared 0.84 0.82 0.78 0.74 0.70 Dividend Payout Ratio72.41%40.20%43.09%43.02%41.92%Book Value$16.83 $16.24 $17.81 $17.11 $16.26 Balance Sheet Data at Year EndTotal Assets$4,235,900 $4,281,511 $4,068,789 $4,069,141 $4,097,843 Loans 3,248,064 3,311,733 3,105,036 3,033,454 3,188,249 Allowance for Credit Losses 28,992 31,432 29,831 33,037 29,289 Deposits 3,270,986 3,464,634 3,315,245 3,321,588 3,144,016 Borrowed Funds 542,500 411,000 311,322 306,097 528,182 Stockholders’ Equity 380,146 364,536 413,812 407,118 389,108 Average Balance Sheet DataTotal Assets$4,235,989 $4,247,052 $4,151,577 $4,140,867 $4,194,355 Loans 3,260,903 3,276,589 2,976,061 3,110,512 3,217,530 Allowance for Credit Losses 30,291 30,604 31,300 33,180 30,080 Deposits 3,431,990 3,536,709 3,425,976 3,257,317 3,276,699 Borrowed Funds 397,928 289,584 281,191 457,939 494,785 Stockholders’ Equity 367,496 386,839 416,885 393,662 391,613 Financial RatiosReturn on Average Assets (ROA)0.62%1.11%1.04%1.00%0.99%Return on Average Equity (ROE)7.14%12.13%10.34%10.47%10.61%Average Equity to Average Assets8.68%9.11%10.04%9.51%9.34% vested
dividualized
dispensible
First National Bank LI works on a mission of continually 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,
employees and communities.
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 bank 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 First of Long Island Corporation
2023 Annual Report
1
2023 Annual Report 32 First of Long Island CorporationThe events and conditions of 2023 necessitated a focus on liquidity, capital and asset quality industrywide, and I’m happy to report that our Company is well-positioned in these areas. An inverted yield curve, as the one experienced throughout 2023, resulting from the Fed moving short-term rates up to the mid 5’s is unusual and largely unkind to the banking industry’s net interest margins. The shape of the curve in 2023 combined with The First National Bank of Long Island’s liability-sensitive Balance Sheet resulted in a 74-basis point drop in our net interest margin to 2.16% in 2023 from 2.89% in 2022. Net income and fully diluted earnings per share for 2023 totaled $26.2 million and $1.16, respectively. The Company’s return on average assets (ROA) was 0.62% and its return on average equity (ROE) was 7.14%. Owing primarily to the aforementioned margin compression, the metrics for 2023 did not match up to the record Fellow Shareholders dispensible
business partner
“ Our leadership team is focused on business
growth through efficiency...”
net income and fully diluted earnings per share
performance the Bank produced in 2022 of $46.9
letter. The good news is that inverted yield curves
historically last approximately eighteen months. With
interest rates beyond our control, we remain focused
on our primary strategic initiatives as follows:
• Recruit bankers that build relationship business.
• Structure the Balance Sheet to optimize
financial performance.
• Optimize the current and prospective
branch network.
million and $2.04, respectively. In 2022, ROA was 1.11%
• Improve the quality and utilization of technology.
and ROE was 12.13%. Noninterest expenses were
managed carefully and were 4.4% lower in 2023
totaling $64.1 million compared to $67.0 million in 2022.
• Improve the Company’s name recognition and
community standing.
• Attract, retain and motivate employees that
Interest rates and the slope of the yield curve will
support our objectives.
eventually change. A historically normal upward-
shaped yield curve is expected to benefit the Bank
and allow our performance metrics to return to
historical norms. The yield curve inversion between
the two-year and ten-year Treasuries started in July
2022 and remains so through the drafting of this
1N celebrated the ribbon cutting of three Branch relocations
in Bohemia, Hauppauge and Port Jefferson. The new locations
offer an improved customer experience through the upgrade
or addition of 24-hour ATMs, drive-ups (where applicable) and
expanded on-site parking.
With that in mind, during 2023 we added deposit
gathering bankers in several markets and celebrated
the relocation of three legacy branches. Our branch
optimization plan has resulted in the closing of 15
branches since 2020, which has reduced annual
operating expenses by approximately $5 million. To
expand our reach on Long Island, we successfully
opened three branches on the East End over the
same period with those branches attracting $119
million in new deposit relationships of which 41% is
in noninterest-bearing checking accounts as of year-
end 2023. We plan to open a branch on Long Island’s
North Fork in Southold during the second quarter
of 2024, which will complete our initial expansion
plan on the East End. Our leadership team is focused
on business growth through efficiency – providing
the right number of branches, in the right locations,
with the right people to best serve our clients,
communities and shareholders.
2 First of Long Island Corporation
2023 Annual Report 3
Liquidity
$425,133
$262,358
Cash &
Unencumbered
Securities
($ in thousands)
2022
2023
Capital
9.83%
10.05%
8.51%
8.97%
2022
2023
2022
2023
Leverage Capital Ratio
Tangible Capital Ratio
dividualized
service
“ Our loyal customers appreciate the
stability of our Bank.”
Large regional bank failures and short-term Treasury
yields not seen since prior to the Great Recession
caused some deposit market disruption in 2023. I
am proud that average total deposits held steady at
$3.4 billion during 2023. That compares to average
total deposits in 2022 of $3.5 billion. Noninterest-
bearing checking deposits still represent 35% of total
deposits highlighting the relationship focus in our
deposit mix. As markets settle and rates stabilize,
we believe our banking teams will capitalize on the
constantly shifting banking landscape in our market
area. Our loyal customers appreciate the stability
of our Bank, and we believe the same is desired
by our target markets of small and middle market
businesses, professional service firms, not-for-profits,
municipalities and service-conscience consumers.
Asset Quality
0.20%
0.15%
0.10%
0.05%
0.00%
2019 2020 2021 2022 2023
NPL / Total Loans
0.03% 0.04% 0.04% 0.00% 0.03%
NCO / Average Loans 0.05% 0.07% 0.02% 0.02% 0.06%
This device allows participating customers to walk into any of
our branches and hover their hand over the scanning surface,
verifying client identity within seconds.
*Data as of December 31
4 First of Long Island Corporation
2023 Annual Report 5
Coming Soon
Our Branches
● Manhattan ● Brooklyn ● Queens
● Nassau County ● Suffolk County
Management proactively completed two balance
I cannot thank them enough for their outstanding
sheet repositioning transactions during the year to
work and dedication to this project. We believe our
help reduce our sensitivity to rising interest rates.
new best-in-class systems will enhance customer
In March, the Bank entered into an interest rate
experience and provide our bankers with the tools
swap to convert $300 million of fixed rate residential
needed to service our clients and generate new
mortgage loans to floating rate for a period of 3
relationship-based business.
years. During 2023, this transaction added $3.1 million
to pre-tax earnings. Also in March, the Bank sold
$149 million in fixed rate municipal securities and
purchased a similar dollar amount of floating rate
SBA securities. The Bank recognized a $3.5 million
pre-tax loss and earned back approximately $2.7
million of the pre-tax loss through year end 2023.
As we ended 2023, these two transactions were
generating approximately $2.2 million in quarterly
pre-tax earnings above what would have been
earned without these moves.
build g
relationships
“ We believe our new best-in-class systems
will enhance customer experience...”
The transition to a more commercially focused
institution that began in 2020 continued to make
progress in 2023 thanks to the hard work by our
Our planned technology upgrades were completed
commercial lending teams and their branch partners.
over the first weekend of February 2024. New
A key component of this objective is growing our
technology includes Fiserv’s DNA core processing
commercial and industrial loan and owner-occupied
system, business online banking, business mobile
mortgage business. This combined portfolio has
app, branch platform and teller systems, biometrics
increased from $223 million at the beginning of 2020
identification and numerous paper-eliminating
to $350 million at the end of 2023. While the pace of
efficiencies. Our team has been working on
growth in this area slowed in 2023 to 6.3%, it has still
implementing these new systems for 18 months.
exceeded 12% per year on average since 2020.
4 First of Long Island Corporation
2023 Annual Report 5
Deposits
$912
29.0%
$1,133
34.6%
2021
2019
2022
2023
Checking
Deposits
($ in millions)
Ratios: Non-interest
bearing checking
deposits/ total
deposits
Loans
$350
$223
C&I and
Owner Occupied
Commercial
Mortgages
($ in millions)
2021
2019
2023
2022
$1,681
$1,211
Residential
Mortgages
($ in millions)
2019
2023
*Data as of December 31
6 First of Long Island Corporation
Mortgage customers now benefit
from expanded purchase and
refinance products, including
low down payment options and
closing cost incentives, all using
Rocket Mortgage’s streamlined
online application process. Visit
fnbli.com/mortgage to learn more.
Our total commercial loan portfolio has grown from
$1.5 billion to $2.0 billion over the past four years.
Offsetting the success of this management team’s
commercial transition has been the legacy residential
mortgage business. Since year end 2019, our
management team has allowed the portfolio to
paydown by $454 million, which has disguised our
success in growing the commercial portfolio as
outlined in the previous paragraph. In 2023, the Bank
announced a new co-marketing referral agreement
with Rocket Mortgage®, the nation’s leading
mortgage lender. As a result of this new relationship,
we eliminated the need for a residential mortgage
department saving nearly $1 million in annual
noninterest expense going forward, while expanding
financing options and benefits for our customers.
The support of a strong marketing team sets the
tone for our key initiatives. We continue to get
compliments on the fresh look of our branding at
new and relocated branch locations. Many of our
existing locations have also received facelifts to five-
star reviews. Our new social media and refreshed
2023 Annual Report 7
lead
g
local lender
“ Our total commercial loan portfolio has
grown from $1.5 billion to $2.0 billion over
the past four years.”
traditional media advertising has been recognized
by customers and prospects with positive feedback.
In particular, our new “Meet the Bankers” series on
social media was a big hit in 2023.
I am proud to say key aspects of our transformation
strategy which began in 2020 are largely in the
rearview. The Bank has a fresh look, top notch
technology, innovative partnerships replace legacy
stalemate business lines, a more efficient branch
network, bankers focused on commercial relationship
growth, a proven history of strong asset quality all
of which is underpinned by a strong capital position
with leverage and tangible capital ratios of 10.05%
and 8.97%, respectively. Combined with optimism
about short-term rates moving lower, especially for
a Bank that remains generally liability-sensitive, we
enter 2024 with a bright outlook for the future.
Before closing, I would like to recognize a few people
for their many contributions over the years.
After five years as our Chief Investment Officer
and four years as our Chief Financial Officer, Jay
McConie has decided to step away from day-to-day
management. He has been a key executive partner
in many of the initiatives discussed in this letter and
prior communications. I thank him for his tremendous
efforts and dedication to the Company over these
past 9 years.
We have two director retirements in 2024. Alexander
L. Cover will retire effective April 16, 2024, after
20-years of service on our Board of Directors. He was
a long-time Chair of our Audit Committee. Alex joined
the Board of Directors after a distinguished career in
public accounting with Ernst & Young LLP. Stephen
V. Murphy retired effective January 31, 2024, after
18-years of service on our Board of Directors. He was
a long-time Chair of our Board Loan Committee prior
to becoming a long-time Chair of our Board Asset
Liability Committee. Steve was a career investment
banker specializing in financial institutions. Both
gentlemen worked tirelessly as committee chairs and
board members to assure the proper oversight of our
Company. Their combined experience made them a
formidable duo and their contributions to the Board
will be missed. On behalf of the Board of Directors,
Management and staff, thank you both for your many
years of dedicated service and valuable insight.
Also, thank you to all directors for bringing their unique
perspectives to the governance of our Company.
Thank you to our customers and employees who are
the reason we continue to succeed.
Lastly, I want to reassure our loyal shareholders that
the Board of Directors and Management Team are
focused on returning to our historical performance
metrics and making the right decisions to maximize
future shareholder returns.
Sincerely,
Christopher Becker
President and Chief Executive Officer
6 First of Long Island Corporation
2023 Annual Report 7
➊
➋
vested in
our community
Our Impact 1
1,425+
Hours of Volunteerism.
Includes hands-on service and
professional guidance
For more than 95 years, 1N
has remained committed to
local service and goodwill.
This has been achieved
through a combination of
monetary donations and
hands-on volunteerism, which
has fostered a meaningful
connection and equity
between our employees and
the communities we serve
with pride.
➊ New York Blood Center
➋ 9-1-1 Veterans Turkeys for Vets
Blood Drive
The Bank is proud to support
The Blue Crew hosted its first ever
9-1-1 Veterans, a small not-for-profit
on-site Blood Drive in Melville,
partnering with New York Blood
organization assisting those who have
served and are serving in the United
Center for a day of donations. Team
States Military through financial
members from across the Bank
assistance, food and clothing. Team
network also donated at area blood
members assisted with its 11th Annual
centers during the month of June.
Turkeys for Vets Thanksgiving event,
Together, we donated over 58 pints of
hosted at the VFW of Lindenhurst.
blood for use in area hospitals.
Five hundred frozen turkeys were
provided with all the trimmings,
benefitting local Veterans and local
VFW’s across Long Island.
8 First of Long Island Corporation
2023 Annual Report 9
Our Impact 1
1,425+
Hours of Volunteerism.
Includes hands-on service and
professional guidance
➌
➍
➎
146
Organizations touched by 1N
through volunteerism and
monetary support
117
Community Development &
Reinvestment Loans Issued
$23.6
Million Extended in
Community Development &
Reinvestment Lending
➌ Oceanside Senior Center
➍ Harry Chapin Community Garden
➎ COVE Animal Shelter
With this annual event at Oceanside
Members of our Commercial Lending
Our #1NTeam spent time at
Senior Center, members of our branch
team spent the afternoon with
COVE Animal Shelter in Glen
network and Branch Administration
Long Island Cares at Harry Chapin
Cove, walking many of the dogs
staff enjoy an afternoon of food, bingo
Community Garden, cleaning up
available for adoption, playing with
and good company. Our team starts
the garden beds and harvesting
cats, cleaning the facilities and
out the morning greeting seniors as
vegetables. 1N helped build the raised
assisting with laundry. Our team
they arrive, play several rounds of
beds of the community garden in
was lucky to witness another
bingo, and participate in a stretch
2022, creating a space that allows
adoption while volunteering.
before helping to serve lunch to all of
local communities to have access to
the senior center’s guests.
fresh produce for years to come.
8 First of Long Island Corporation
2023 Annual Report 9
12023 Data based on lending data, volunteerism efforts and philanthropic contributions
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
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, 22,590,942 and 22,443,380 shares
Surplus
Retained earnings
Accumulated other comprehensive loss, net of tax
2023
2022
$
60,887
695,877
$
74,178
673,413
116,163
108,493
1,919,714
1,166,887
44,070
1,230
3,248,064
(28,992)
1,916,493
1,240,144
45,213
1,390
3,311,733
(31,432)
3,219,072
3,280,301
32,659
31,414
22,588
114,045
10,740
28,996
19,622
26,363
31,660
23,952
110,848
11,049
31,124
18,623
$ 4,235,900
$
4,281,511
$ 1,133,184
1,546,369
591,433
$
1,324,141
1,661,512
478,981
3,270,986
70,000
472,500
24,940
17,328
3,464,634
–
411,000
25,896
15,445
3,855,754
3,916,975
2,259
79,728
355,887
437,874
(57,728)
2,244
78,462
348,597
429,303
(64,767)
380,146
364,536
$ 4,235,900
$
4,281,511
10 First of Long Island Corporation
2023 Annual Report
11
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
2023
2022
2021
$
127,866
$
116,352
$
106,266
22,663
4,954
9,795
8,063
8,162
8,531
155,483
134,210
122,959
32,164
19,267
950
16,237
7,180
5,296
1,207
4,814
4,414
5,712
1,427
4,599
68,618
18,497
16,152
86,865
(326)
115,713
2,331
106,807
(2,573)
Net interest income after provision (credit) for credit losses
87,191
113,382
109,380
Noninterest income:
Bank-owned life insurance
Service charges on deposit accounts
Net gain (loss) on sales of securities
Gain (loss) on disposition of premises and fixed assets
Other
Noninterest expense:
Salaries and employee benefits
Occupancy and equipment
Debt extinguishment
Other
Income before income taxes
Income tax expense
Net income
Earnings per share:
Basic
Diluted
Cash dividends declared per share
3,197
3,034
(3,489)
240
3,354
3,017
3,157
–
(553 )
6,242
2,399
2,925
1,104
–
6,146
6,336
11,863
12,574
37,373
13,140
–
13,546
41,096
13,407
–
12,523
39,753
15,338
1,021
12,535
64,059
67,026
68,647
$
$
29,468
3,229
26,239
1.16
1.16
0.84
58,219
11,287
53,307
10,218
$
$
$
$
46,932
2.05
2.04
0.82
43,089
1.82
1.81
0.78
10 First of Long Island Corporation
2023 Annual Report
11
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
Walter C. Teagle III
Chairman of the Board, The First of
Long Island Corporation and The First
National Bank of Long Island; President
and Owner, Teagle Management, Inc.
(Private Investment Firm)
Eric J. Tveter
Former CEO of Central Europe
Liberty Global plc.
Officers
Paul T. Canarick
President & Principal of
Paul Todd, Inc. (Construction Company)
Christopher Becker
President & Chief Executive Officer of the
Corporation and the Bank
J. Abbott R. Cooper
Attorney, Abbott Cooper PLLC;
Founder and managing member of
Driver Management Company LLC
Alexander L. Cover
Business & Management Consultant
Retired Partner of Ernst & Young LLP
John J. Desmond
Retired Partner of Grant Thornton LLP
Edward J. Haye
Partner at Cullen and Dykman LLP;
Former Chief Regulatory Counsel for American
Water Works Company, Inc.
Louisa M. Ives
Managing Director of
Chilton Trust
Peter Quick
Retired
Denise Strain
Retired Managing Director, Senior Tax
Counsel, Citigroup Inc.
Milbrey Rennie Taylor
Retired Executive Producer of CBS News
Senior Executive Vice Presidents
Christopher Hilton
Chief Lending Officer
Janet T. Verneuille, CPA
Chief Financial Officer, Treasurer of the
Corporation and Cashier of the Bank
Executive Vice Presidents
Tanweer S. Ansari, Esq
Chief Risk Officer & General Counsel
Richard P. Perro
Chief Retail Officer
Susanne Pheffer
Chief Information Officer
Michael J. Spolarich
Chief Credit Officer
Senior Vice Presidents
Diane Beck
Director of Program Management
Jacqueline Brown
Branch District Manager
Robert Colosa
Chief Auditor
Richard Corrado
Director of Commercial Lending Operations
Margaret M. Curran-Rusch
Middle Market Team Leader
Maria Doyle, CPA
Controller of the Corporation and the Bank
Seamus Doyle
South Fork Team Leader –
Commercial Lending
Brian Emigholz
SVP - Business Banking Team Leader
John Fitzpatrick
CRE Relationship Manager
Rose Florio-Campanaro
Loan Operations Manager
Robert Grady
Director of Middle Market Lending
Lou Iacucci
Middle Market Relationship Manager
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 II
Middle Market Team Leader
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
12 First of Long Island Corporation
Business Advisory Board
Vincent A. Albanese
Partner
Albanese & Albanese LLP
Barry Berg, CPA
Consultant
Bernard Esquenet
CEO
The Ruhof Corporation
Kevin J. Harding
Partner
Harding and Burke, PLLC
James D. Kiley
Partner
Kiley, Kiley & Kiley, PLLC
Our Branches
Manhattan
232 Madison Avenue
Brooklyn
Bay Ridge
Cobble Hill
Queens
Astoria
Bay Terrace
College Point
Howard Beach
Whitestone
Sal J. Turano
President
Abstracts Incorporated
Candy Udell
President
London Jewelers
Mark Udell
CEO
London Jewelers
Mark Wurzel
President
Calico Cottage Inc.
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
Nassau County
Suffolk County
Bayville
East Meadow
Garden City
Glen Head
Great Neck
Greenvale
Hewlett
Hicksville
Lake Success
Locust Valley
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
Southold (Coming Soon)
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