Exhibit 99.2
SECOND QUARTERLY REPORT
JUNE 2003
[LOGO] The First of Long Island
The First of Long Island Corporation
Dear Stockholder
Earnings per share were $1.34 for the first six months of this year
compared to $1.32 earned in the similar 2002 period. For the second quarter of
2003, earnings per share were 60 cents, a decline from the 70 cents earned in
the same quarter last year. Net income for the most recent six months was
$5,603,000. Total assets were $841,156,000 at June 30, 2003 and the growth of
our core products continues to be good.
The most significant items positively affecting earnings for the six
months were a 14% increase in average checking balances and an unusually large
commercial mortgage prepayment fee received in the first quarter; the prepayment
fee, the recurrence of which is unlikely, is equivalent to approximately 8 cents
per share. Other important factors also favorably impacting earnings were gains
on sales of equity securities and continued growth of money market type savings
balances and residential mortgages.
Overwhelmingly, the most negative influence on earnings are the effects of
the severe decline in interest rates. On a sequential quarter-to-quarter basis,
after a modest uptick in the first quarter, net interest margin continued to
decrease. As we have cautioned in the past, sustained lower interest rates
should exacerbate the decline in our net interest margin and further negatively
impact our income. Also adversely affecting earnings, especially in the second
quarter, were expenses of our growth strategies particularly the opening of our
three New York City branches.
The New York City commercial offices were opened on June 2nd and, while it
is premature to predict their ultimate success, so far the results are
encouraging. Our free checking campaign is attracting consumer checking business
to the Bank resulting in a growth of about 6% in the number of net new consumer
checking accounts so far.
For our shareholders whose stock is registered in their name, we are
pleased to enclose with this report your semiannual cash dividend which is 19%
greater than the dividend paid last year at this time.
By: /s/ J. William Johnson
Chairman and Chief Executive Officer
This quarterly report contains "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
6/30/03 6/30/02
------- -------
(in thousands)
Total Assets ....................................... $ 841,156 $ 759,751
Net Loans .......................................... 272,889 244,094
Investment Securities .............................. 463,403 409,547
Checking Deposits .................................. 278,013 241,371
Savings and Time Deposits .......................... 469,854 431,997
Total Stockholders' Equity ......................... 86,706 80,670
INCOME STATEMENT INFORMATION
Six Months Ended
----------------------
6/30/03 6/30/02
------- -------
(in thousands)
Net Interest Income ................................ $ 16,173 $ 15,670
Provision For Loan Losses .......................... 150 150
--------- ---------
Net Interest Income After Loan Loss Provision ...... 16,023 15,520
--------- ---------
Noninterest Income ................................. 3,002 2,808
Noninterest Expense ................................ 11,557 10,748
--------- ---------
Income Before Income Taxes ....................... 7,468 7,580
Income Tax Expense ................................. 1,865 1,965
--------- ---------
Net Income ......................................... $ 5,603 $ 5,615
========= =========
Earnings Per Share:
Basic .............................................. $ 1.37 $ 1.34
Diluted ............................................ $ 1.34 $ 1.32
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INCOME STATEMENT INFORMATION
Three Months Ended
-----------------------
6/30/03 6/30/02
------- -------
(in thousands)
Net Interest Income ................................ $ 7,701 $ 8,084
Provision For Loan Losses .......................... 75 50
--------- ---------
Net Interest Income After Loan Loss Provision ...... 7,626 8,034
--------- ---------
Noninterest Income ................................. 1,517 1,479
Noninterest Expense ................................ 5,872 5,447
--------- ---------
Income Before Income Taxes ....................... 3,271 4,066
Income Tax Expense ................................. 761 1,099
--------- ---------
Net Income ......................................... $ 2,510 $ 2,967
========= =========
Earnings Per Share:
Basic .............................................. $ .62 $ .71
Diluted ............................................ $ .60 $ .70
For more detailed financial information please see the Corporation's Form
10-Q for the quarterly period ended June 30, 2003. The Form 10-Q will be
available on or before August 14, 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
232 Madison Avenue
New York, NY 10016
(212) 213-8111
1501 Broadway, Suite 301
New York, NY 10036
(212) 278-0707
225 Broadway, Suite 703
New York, NY 10007
(212) 693-1515
Investment Management Division
800 Woodbury Road
Woodbury, NY 11797
(516) 364-3436
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