The First of Long Island Corporation (FLIC) 8-K The First of Long Island Corporation Announces an Increase In Net Income

Exhibit 99.1

[THE FIRST OF LONG ISLAND CORPORATION LETTERHEAD]

January 30, 2012	For More Information Contact:
	Mark D. Curtis, Senior Vice President and Treasurer
	(516) 671-4900, Ext. 556

PRESS RELEASE IMMEDIATE

THE FIRST OF LONG ISLAND CORPORATION ANNOUNCES AN INCREASE IN NET INCOME

FOR THE YEAR ENDED DECEMBER 31, 2011

Glen Head, New York, January 30, 2012 (GLOBE NEWSWIRE) – The First of Long Island Corporation (Nasdaq: FLIC), the parent company of The First National Bank of Long Island, reported net income of $19.5 million, or $2.20 per share, for 2011 versus $18.4 million, or $2.30 per share, for 2010. Returns on average assets and average equity were 1.05% and 11.15%, respectively, for 2011 versus 1.11% and 12.94%, respectively, for 2010.  Gains on sales of securities were $138,000 in 2011 versus $1.7 million last year.  Excluding the gains from each year, net income is up $2.0 million, or 11.6%, versus the reported increase of $1.1 million, or 5.8%.  Earnings per share for 2011 includes the dilutive effect of 1.4 million shares of common stock sold in July 2010, while 2010 earnings per share only include the dilutive effect of this sale from the date of sale through the close of the year.  Net income for the fourth quarter of 2011 was $4.7 million, or $.53 per share, as compared to $5.3 million, or $.60 per share, for the preceding quarter and $4.1 million, or $.46 per share, for the same quarter last year.

Analysis of Full Year 2011 Earnings

The increase in net income for 2011 is primarily attributable to an increase in net interest income of $3.1 million and a reduction in income tax expense of $427,000.  Income tax expense declined primarily because of an increase of $2.0 million, or 20.4%, in tax-exempt income on municipal securities.  Partially offsetting the positive impact of the aforementioned items was the $1.6 million decrease in gains on sales of securities and an increase in occupancy and equipment expense of $662,000, or 10.2%.

The increase in net interest income for the year is primarily attributable to growth in the average balances of all categories of interest-earning assets as partially offset by an eighteen basis point decline in net interest margin. On an overall basis, total average interest-earning assets grew by $195.6 million, or 12.3%.  Loans and municipal securities, the Bank’s two highest yielding asset categories, grew by $83.1 million or 9.6%, and $61.8 million, or 25.5%, respectively, while taxable securities and interest-bearing bank balances, the Bank’s two lowest yielding asset categories, grew by $45.8 million, or 9.7%, and $4.9 million, or 33.4%, respectively. Funding this growth were increases in noninterest-bearing checking deposits of $47.5 million, or 12.7%, capital of $32.3 million, or 22.7%, savings, NOW and money market deposits of $94.4 million, or 14.5%, and long-term debt of $34.6 million, or 21.0%.  From the standpoint of net interest income, checking deposits and capital are the most desirable funding sources because neither has an associated interest cost. The 2011 decrease in net interest margin occurred primarily because the negative impact of market driven declines in yield on the Bank’s securities and loan portfolios far outweighed the positive impact of management’s successful efforts to lower the Bank’s overall funding cost.  The funding cost reduction would have been greater had management not engaged in a liability extension strategy involving additional long-term borrowings and extending the duration of the Bank’s time deposits.  This strategy results in paying more for funding today in exchange for possibly reducing the negative impact that future increases in interest rates could have on the Corporation’s earnings.

Occupancy and equipment expense increased when comparing the current to the prior year largely because of the cost of opening six new branches since the beginning of 2010.  Despite the cost of personnel needed to staff the new branches and the impact of normal annual salary increases, salary expense for 2011 was only 2.1% higher than 2010 and employee benefits expense declined by $237,000, or 4.5%.  Salary expense was contained by partially staffing the new branches with experienced personnel from existing branches and staff reductions through attrition.   As a result of these efficiency measures, which management believes were executed without compromising internal controls or service quality, the number of full-time-equivalent employees was virtually unchanged when comparing year-end 2011 to 2010.  A significant portion of the decrease in employee benefit expense is attributable to a decrease in retirement plan expense.

Analysis of Fourth Quarter 2011 Earnings

The increase in net income for the fourth quarter of 2011 versus the same quarter last year was primarily attributable to an increase in net interest income of $921,000 and an increase in noninterest income, before gains on sales of securities, of $276,000.  The positive impact of these items was partially offset by an increase in noninterest expense of $517,000.  Net interest income is up for the same reasons discussed with respect to the full year.  Noninterest income is up largely because the fourth quarter of 2010 included a $300,000 charge to establish a valuation allowance on one loan held for sale.  The increase in noninterest expense occurred largely because the fourth quarter of this year included charges for litigation and real estate taxes paid by the Bank to protect its interest in problem loans.

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The decline in net income for the fourth quarter of 2011 versus the preceding quarter is primarily attributable to an increase in the provision for loan losses of $670,000 and the aforementioned charges for litigation and problem loan expense.  The fourth quarter 2011 provision for loan losses resulted from a combination of loan growth, $335,000 in net chargeoffs, an increase of $172,000 in reserves allocated to loans individually deemed to be impaired and an increase in collective impairment reserves on pools of loans primarily due to management’s current assessment of national and local economic conditions.

Asset Quality

The Bank’s allowance for loan losses to gross loans (“reserve coverage ratio”) grew by 13 basis points in 2011 from 1.55% at the beginning of the year to 1.68% by year-end.  This compares to 30 basis points of growth during 2010 from 1.25% at the beginning of the year to 1.55% by year-end. The $4.1 million provision for loan losses for 2011 is primarily attributable to loan growth, the impact of $1.5 million in net chargeoffs and the 13 basis point increase in the reserve coverage ratio.  Net chargeoffs for 2011 are largely comprised of a $1.3 million chargeoff on one loan that was transferred to the held for sale category and subsequently sold.  The $4.0 million provision for 2010 was primarily attributable to loan growth, the impact of $305,000 of net chargeoffs, an increase of $852,000 in specific reserves allocated to problem loans and the 30 basis point increase in the reserve coverage ratio.  The increase in the reserve coverage ratio during each year was largely driven by management’s assessment of a variety of qualitative factors including national and local economic conditions.  The credit quality of the Bank’s loan portfolio remains excellent, with delinquent and nonaccrual loans amounting to only $4.0 million, or .4% of total loans, at December 31, 2011.  Such loans are comprised of loans past due 30 to 89 days of $740,000 and nonaccrual loans of $3.2 million.  In addition, although troubled debt restructurings increased by $2.8 million during the current year, they remain relatively low at $5.4 million.  Of these loans, $3.6 million are performing in accordance with their modified terms and $1.8 million are delinquent.  The credit quality of the Bank’s securities portfolio also remains excellent.  The Bank’s mortgage securities are backed by mortgages underwritten on conventional terms, and almost all of these securities are full faith and credit obligations of the U.S. government.  The remainder of the Bank’s securities portfolio consists principally of municipal securities rated AA or better by major rating agencies.

Capital

The Bank’s Tier 1 leverage, Tier 1 risk-based and total risk-based capital ratios were 8.80%, 20.31% and 21.57%, respectively, at December 31, 2011.  The strength of the Bank’s balance sheet, from both a capital and asset quality perspective, positions the Bank for continued growth in a measured and disciplined fashion.

Key Strategic Initiatives

Key strategic initiatives with respect to the Bank’s earnings prospects will continue to include loan growth and expansion of the Bank’s branch distribution system.  In 2011, the Bank opened two full service branches on Long Island, one in Point Lookout and one in Massapequa.  In 2012 the Bank is currently planning to open one full service branch in Lindenhurst, Long Island.

Challenges We Face

Interest rates are currently very low and there is significant price competition for loans in the Bank’s marketplace.  The persistence of these factors will likely result in a decline in net interest margin.  If that were to occur, and management is unable to offset the impact by increasing the volume of interest-earning assets, expense savings or other measures, the Bank’s profitability could decline.

Commercial and residential real estate values have been negatively impacted by persistently high levels of unemployment, foreclosures and commercial vacancies.  These factors present threats to the maintenance of loan quality.

The banking industry is currently faced with an ever-increasing number of new and complex regulatory requirements which are putting downward pressure on revenues and upward pressure on the cost of doing business.

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BALANCE SHEET INFORMATION

	12/31/11			12/31/10
	(in thousands)
Total Assets	$	2,022,407		$	1,711,023
Loans:
Commercial and industrial		42,572			39,055
Secured by real estate:
Commercial mortgages		459,875			416,946
Residential mortgages		372,477			334,768
Home equity		103,513			103,829
Consumer		4,596			5,790
		983,033			900,388
Net deferred loan origination costs		2,826			2,571
		985,859			902,959
Allowance for loan losses		(16,572	)		(14,014	)
		969,287			888,945
Investment Securities:
U.S. government agencies		5,113			5,155
State and municipals		356,286			264,906
Pass-through mortgage securities		80,637			91,496
Collateralized mortgage obligations		514,005			378,136
		956,041			739,693
Deposits:
Checking		435,517			386,797
Savings, NOW and money market		796,009			637,975
Time, $100,000 and over		174,691			178,901
Time, other		96,651			89,265
		1,502,868			1,292,938
Borrowed Funds		309,727			253,590
Stockholders' Equity		189,347			156,694
Share and Per Share Data:
Common Shares Outstanding at Period End		8,793,932			8,707,665
Book Value Per Share		$21.53			$17.99
Tangible Book Value Per Share		$21.51			$17.97

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CONSOLIDATED STATEMENTS OF INCOME

	Twelve Months Ended				Three Months Ended
	12/31/11		12/31/10		12/31/11		12/31/10
	(dollars in thousands, except per share data)
Interest and dividend income:
Loans	$	47,777	$	45,660	$	12,037	$	11,563
Investment securities:
Taxable		16,662		16,879		4,378		3,942
Nontaxable		11,873		9,864		3,220		2,697
		76,312		72,403		19,635		18,202
Interest expense:
Savings, NOW and money market deposits		4,035		4,049		1,099		884
Time deposits		6,052		5,977		1,551		1,433
Short-term borrowings		93		108		17		17
Long-term debt		7,387		6,640		1,899		1,720
		17,567		16,774		4,566		4,054
Net interest income		58,745		55,629		15,069		14,148
Provision for loan losses		4,061		3,973		1,424		1,550
Net interest income after provision for loan losses		54,684		51,656		13,645		12,598
Noninterest income:
Investment Management Division income		1,539		1,465		378		302
Service charges on deposit accounts		3,186		3,465		749		819
Net gains on sales of available-for-sale securities		138		1,719		16		-
Other		1,563		1,284		432		162
		6,426		7,933		1,575		1,283
Noninterest expense:
Salaries		15,785		15,458		3,959		3,771
Employee benefits		5,066		5,303		1,104		1,131
Occupancy and equipment expense		7,148		6,486		1,742		1,559
Other operating expenses		8,710		8,579		2,661		2,488
		36,709		35,826		9,466		8,949
Income before income taxes		24,401		23,763		5,754		4,932
Income tax expense		4,944		5,371		1,026		868
Net Income	$	19,457	$	18,392	$	4,728	$	4,064
Share and Per Share Data:
Weighted Average Common & Common Equivalent Shares		8,854,964		8,007,677		8,872,056		8,816,176
Basic EPS		$2.22		$2.33		$.54		$.47
Diluted EPS		$2.20		$2.30		$.53		$.46
Cash Dividends Declared		$  .90		$  .84		$.23		$.22

FINANCIAL RATIOS

ROA	1.05	%	1.11	%	0.95	%	0.95	%
ROE	11.15	%	12.94	%	10.04	%	9.71	%
Net Interest Margin	3.63	%	3.81	%	3.50	%	3.80	%
Dividend Payout Ratio	40.91	%	36.52	%	43.40	%	47.83	%

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ASSET QUALITY INFORMATION

	12/31/11			12/31/10
	(dollars in thousands)
Loan held for sale	$	-		$	1,000
Delinquent and nonaccrual loans*:
Past due 30 through 89 days	$	740		$	1,660
Past due 90 days or more and still accruing		-			-
Nonaccrual		3,211			2,936
	$	3,951		$	4,596
Troubled debt restructurings:
Not included in delinquent and nonaccrual loans	$	3,549		$	2,433
Included in delinquent and nonaccrual loans		1,846			193
	$	5,395		$	2,626
Other real estate owned	$	-		$	-
Allowance for loan losses	$	16,572		$	14,014
Allowance for loan losses as a percentage of total loans		1.68	%		1.55	%
Allowance for loan losses as a multiple of nonaccrual loans		5.2			4.8

* Excludes loan held for sale

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AVERAGE BALANCE SHEET, INTEREST RATES AND INTEREST DIFFERENTIAL

	Twelve Months Ended December 31,
	2011								2010
	Average			Interest/		Average			Average			Interest/		Average
	Balance			Dividends		Rate			Balance			Dividends		Rate
Assets	(dollars in thousands)
Interest-bearing bank balances	$	19,398		$	47		.24	%	$	14,536		$	34		.23	%
Investment Securities:
Taxable		517,856			16,615		3.21			472,039			16,845		3.57
Nontaxable (1)		304,647			17,989		5.90			242,830			14,945		6.15
Loans (1) (2)		947,309			47,806		5.05			864,163			45,683		5.29
Total interest-earning assets		1,789,210			82,457		4.61			1,593,568			77,507		4.86
Allowance for loan losses		(15,013	)							(11,954	)
Net interest-earning assets		1,774,197								1,581,614
Cash and due from banks		26,346								26,008
Premises and equipment, net		21,410								20,442
Other assets		30,658								29,332
	$	1,852,611							$	1,657,396
Liabilities and Stockholders' Equity
Savings, NOW & money market deposits	$	745,916			4,035		.54		$	651,506			4,049		.62
Time deposits		272,458			6,052		2.22			285,213			5,977		2.10
Total interest-bearing deposits		1,018,374			10,087		.99			936,719			10,026		1.07
Short-term borrowings		26,798			93		.35			28,864			108		.37
Long-term debt		199,584			7,387		3.70			164,959			6,640		4.03
Total interest-bearing liabilities		1,244,756			17,567		1.41			1,130,542			16,774		1.48
Checking deposits		421,273								373,788
Other liabilities		12,124								10,926
		1,678,153								1,515,256
Stockholders' equity		174,458								142,140
	$	1,852,611							$	1,657,396
Net interest income (1)				$	64,890							$	60,733
Net interest spread (1)							3.20	%							3.38	%
Net interest margin (1)							3.63	%							3.81	%

(1) Tax-equivalent basis.  Interest income on a tax-equivalent basis includes the additional amount of interest income that would have been earned if the Corporation's investment in tax-exempt loans and investment securities had been made in loans and investment securities subject to Federal income taxes yielding the same after-tax income.  The tax-equivalent amount of $1.00 of nontaxable income was $1.52 in each period presented based on a Federal income tax rate of 34%.

(2) For the purpose of these computations, nonaccruing loans are included in the daily average loan amounts outstanding.

Forward Looking Information

This earnings release contains various “forward-looking statements” within the meaning of that term as set forth in Rule 175 of the Securities Act of 1933 and Rule 3b-6 of the Securities Exchange Act of 1934.  Such statements are generally contained in sentences including the words “may” or “expect” or “could” or “should” or “would” or “believe”.  The Corporation cautions that these forward-looking statements are subject to numerous assumptions, risks and uncertainties, and therefore actual results could differ materially from those contemplated by the forward-looking statements.  In addition, the Corporation assumes no duty to update forward-looking statements.

For more detailed financial information please see the Corporation’s Form 10-K for 2011.  The Form 10-K will be available through the Bank’s Internet website at www.fnbli.com on or about March 15, 2012, after it is electronically filed with the Securities and Exchange Commission (“SEC”).  Our SEC filings are also available on the SEC’s Internet website at www.sec.gov.  You may also read and copy any document we file with the SEC at the SEC’s public reference room at 100 F Street, N.E., Room 1580, Washington, DC 20549.  You should call 1-800-SEC-0330 for more information on the public reference room.

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