Exhibit 99.2
FIRST QUARTERLY REPORT
MARCH 2003
[LOGO] The First of Long Island
The First of Long Island Corporation
Dear Stockholder
We are pleased to report earnings for the first quarter of 2003. Earnings
per share were 74 cents as compared to 62 cents in the first quarter of 2002, an
increase of 19%. Net income for the most recent quarter was $3,093,000 as
compared to $2,648,000 a year ago. Total assets were $803,691,000 at March 31,
2003.
The most important reason for the growth in earnings was an unusually
large commercial mortgage prepayment fee. Other important causes of the earnings
increase include growth in checking balances, market type savings balances and
residential mortgages as well as a gain on the sale of securities. The large
prepayment fee, the recurrence of which is unlikely, was especially important to
the growth in earnings per share being equivalent to approximately 8 cents per
share.
The Company continues to be challenged by the very low interest rate
market. The negative effects on net interest margin are expected to become even
more pronounced as loans and securities are repriced or reinvested at lower
yields without an offsetting reduction in the cost of funds. Also beginning to
adversely affect earnings are the expenses of certain growth strategies
including the costs of our new branches in Manhattan.
We are excited by two new growth strategies. At the end of March we
introduced a free consumer checking product. Although we have had good growth in
consumer checking balances, the numbers of these accounts have been stagnant and
actually trended down last year. There are also ancillary fee and interest
income opportunities from free checking, as we look forward to greater growth in
our consumer business. Secondly, we expect to open three commercial banking
offices in Manhattan in May. We have put together an excellent team of bankers
for this market and believe that Manhattan could become an integral part of our
growth strategy.
By: /s/ J. William Johnson
Chairman and Chief Executive Officer
This quarterly report 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 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.
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The First of Long Island Corporation
Financial Highlights
BALANCE SHEET INFORMATION
3/31/03 3/31/02
--------- ---------
(in thousands)
Total Assets ............................................................ $803,691 $731,274
Net Loans ............................................................... 266,999 233,001
Investment Securities ................................................... 427,287 400,979
Checking Deposits ....................................................... 264,474 241,058
Savings and Time Deposits ............................................... 448,785 410,461
Total Stockholders' Equity .............................................. 84,987 76,739
INCOME STATEMENT INFORMATION
Three Months Ended
---------------------------
3/31/03 3/31/02
--------- ---------
(in thousands)
Net Interest Income ..................................................... $ 8,472 $ 7,586
Provision For Loan Losses ............................................... 75 100
-------- --------
Net Interest Income After Provision For Loan Losses ............. 8,397 7,486
-------- --------
Noninterest Income ...................................................... 1,485 1,329
Noninterest Expense ..................................................... 5,685 5,301
-------- --------
Income Before Income Taxes ............................................ 4,197 3,514
Income Tax Expense ...................................................... 1,104 866
-------- --------
Net Income ............................................................ $ 3,093 $ 2,648
======== ========
Earnings Per Share:
Basic ................................................................. $ .75 $ .63
Diluted ............................................................... $ .74 $ .62
For more detailed financial information please see the Corporation's Form
10-Q for the quarterly period ended March 31, 2003. The Form 10-Q will be
available on or before May 15, 2003 and can be obtained from our Finance
Department located at 10 Glen Head Road, Glen Head, New York 11545, or you can
access Form 10-Q by going to our website and clicking on "The First of Long
Island Corporation."
Visit our website at
www.fnbli.com
[LOGO] The First of Long Island
The First of Long Island Corporation
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Full Service Offices
10 Glen Head Road
Glen Head, NY 11545
(516) 671-4900
7 Glen Cove Road
Greenvale, NY 11548
(516) 621-8811
253 New York Avenue
Huntington, NY 11743
(631) 427-4143
108 Forest Avenue
Locust Valley, NY 11560
(516) 671-2299
711 Fort Salonga Road
Northport, NY 11768
(631) 261-4000
209 Glen Head Road
Old Brookville, NY 11545
(516) 759-9002
310 Merrick Road
Rockville Centre, NY 11570
(516) 763-5533
130 Mineola Avenue
Roslyn Heights, NY 11577
(516) 621-1900
800 Woodbury Road
Woodbury, NY 11797
(516) 364-3434
Commercial Banking Offices
30 Orville Drive
Bohemia, NY 11716
(631) 218-2500
60 E. Industry Court
Deer Park, NY 11729
(631) 243-2600
22 Allen Boulevard
Farmingdale, NY 11735
(631) 753-8888
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2091 New Highway
Farmingdale, NY 11735
(631) 454-2022
1050 Franklin Avenue
Garden City, NY 11530
(516) 742-6262
536 Northern Boulevard
Great Neck, NY 11021
(516) 482-6666
330 Motor Parkway
Hauppauge, NY 11788
(631) 952-2900
106 Old Country Road
Hicksville, NY 11801
(516) 932-7150
3000 Marcus Avenue
Lake Success, NY 11042
(516) 775-3133
194 First Street
Mineola, NY 11501
(516) 742-1144
200 Jericho Turnpike
New Hyde Park, NY 11040
(516) 328-3100
133 E. Merrick Road
Valley Stream, NY 11580
(516) 825-0202
Manhattan Commercial Banking Offices
(Opening Spring 2003)
232 Madison Avenue
New York, NY 11006
(212) 213-8111
1501 Broadway, Suite 301
New York, NY 10036
225 Broadway, Suite 703
New York, NY 10007
Investment Management Division
800 Woodbury Road
Woodbury, NY 11797
(516) 364-3436
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