The First of Long Island Stock

The First of Long Island Corporation operates as the bank holding company for The First National Bank of Long Island that provides financial services.

The bank has two wholly-owned subsidiaries, such as FNY Service Corp., an investment company; and The First of Long Island Agency, Inc. The bank and FNY Service Corp. jointly own another subsidiary, The First of Long Island REIT, Inc., a real estate investment trust.

The bank’s revenues are derived principally from interest on loans and investment securities, service charges and fees on deposit accounts, income from investment management services and bank-owned life insurance (‘BOLI’).

Markets Served and Products Offered

The bank serves the financial needs of small and medium-sized businesses, professionals, consumers, municipalities and other organizations primarily in Nassau and Suffolk counties of Long Island, and the boroughs of New York City (‘NYC’). The bank has branch locations in Nassau, Suffolk, Queens, Brooklyn, and Manhattan. During 2022, the bank opened a branch in eastern Suffolk County.

The bank’s loan portfolio is primarily consisted of loans to borrowers on Long Island and in the boroughs of NYC, and its real estate loans are principally secured by properties located in those areas. The bank’s investment securities portfolio is consisted of direct obligations of the U.S. government and its agencies, corporate bonds of large U.S. financial institutions and highly rated obligations of states and political subdivisions.

The bank provides investment management, trust, estate and custody services and offers retail investment services through a partnership with Financial Resources Group, an affiliate of LPL Financial.

In addition to its loan, investment and deposit products, the bank offers a wide array of banking services to its customers through its branch network, mobile applications and interactive website.

Investment Activities

As of December 31, 2022, the bank’s investment portfolio was consisted of state and municipal securities, pass-through mortgage securities, CMOs, and corporate bonds.

Lending Activities

The bank’s loan portfolio is primarily consisted of loans to small and medium-sized privately owned businesses, professionals and consumers on Long Island and in the New York (‘NY’) metropolitan area. The bank offers a full range of lending services, including commercial and residential mortgage loans, home equity lines/loans, commercial and industrial loans, small business credit scored loans, Small Business Administration (‘SBA’) loans, construction and land development loans, consumer loans and standby letters of credit. The bank makes both fixed and variable rate loans.

Commercial and Industrial Loans: Commercial and industrial loans include short-term business loans and lines of credit; revolving credit facilities, term and installment loans; loans secured by marketable securities, the cash surrender value of life insurance policies, deposit accounts or general business assets; small business credit scored loans; equipment finance loans; and asset based loans/lines. The bank makes commercial and industrial loans on a demand basis, short-term basis, installment or revolving basis.

Small Business Credit Scored Loans: The bank makes small business credit scored loans to businesses that generally have annual sales at the time of application of less than $3.5 million and issues VISA credit cards. Most of these loans are in the form of revolving credit lines. The bank also originates installment loans to finance business automobiles, trucks and equipment; and can be secured by the asset financed and/or deposit accounts. Both installment loans and revolving credit commitments generally have maturities up to 60 months. Business profile reports are used in conjunction with credit reports and FICO (Fair Isaac Corporation) small business score cards for loan underwriting and decision making purposes.

Real Estate Mortgage Loans and Home Equity Lines: The bank makes residential and commercial mortgage loans and establishes home equity lines of credit. Commercial and residential mortgage loans are made with terms not in excess of 30 years and are generally maintained in the bank’s portfolio. The residential mortgage loans made by the bank in recent years consist of both fixed rate loans with terms ranging from 10 to 30 years and variable rate loans that reprice in five, seven or ten years and then every year thereafter. Commercial mortgage loans generally reprice within five to ten years and home equity lines generally mature within ten years.

Construction Loans: The bank makes loans to finance the construction of both residential and commercial properties. The maturity of such loans is generally 24 months or less and advances are made as the construction progresses.

Consumer Loans and Lines: The bank makes auto loans, home improvement loans and other consumer loans, establishes revolving overdraft lines of credit and issues VISA credit cards. Consumer loans are generally made on an installment basis over terms not in excess of five years. In reviewing loans and lines for approval, the bank generally considers the borrower’s ability to repay, stability of employment and residence and past credit history.

Sources of Funds

The bank offers checking and interest-bearing deposit products. In addition to business and small business checking, the bank has a variety of personal checking products that differ in minimum balance requirements, monthly maintenance fees, and per check charges, if any. Interest-bearing deposit products, which have a wide range of interest rates and terms, consist of negotiable order of withdrawal (‘NOW’) accounts, interest on lawyer accounts, escrow service accounts, rent security accounts, personal and nonpersonal money market and savings accounts, time deposits, holiday club accounts and individual retirement accounts.

Supervision and Regulation

As a registered bank holding company, the company is regulated under the bank Holding Company Act of 1956, as amended (‘BHC Act’), and subject to inspection, examination and supervision by the Federal Reserve Bank (‘FRB’). The company is also subject to the disclosure and regulatory requirements of the Securities Act of 1933, as amended, and the Securities Exchange Act of 1934, as amended, as administered by the Securities and Exchange Commission (‘SEC’).

As a national bank, the bank is subject to regulation and examination by the Office of the Comptroller of the Currency (‘OCC’) and the Federal Deposit Insurance Corporation (‘FDIC’). Insured banks, such as the bank, are subject to extensive regulation of many aspects of their businesses.

The bank received a ‘Satisfactory’ CRA rating on its most recent CRA examination. The bank is a member of the Federal Home Loan Bank System. As a member of the FHLBNY, the bank is required to acquire and hold shares of capital stock in the FHLB in an amount equal to 4.5% of its borrowings from the FHLB (transaction-based stock) plus .125% of the total principal amount at the beginning of the year of the bank’s unpaid residential real estate loans, commercial real estate loans, home equity loans, CMOs and other similar obligations (membership stock).

The U.S. Treasury Department has issued a number of regulations that apply various requirements of the USA PATRIOT Act of 2001 to financial institutions, such as the bank.

History

The First of Long Island Corporation was founded in 1927. The company was incorporated in 1984.