SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 10-Q
- -----
X
- ----- QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES
EXCHANGE ACT OF 1934
For the quarterly period ended September 30, 1996
-------------------------------
OR
- -----
- ----- TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES
EXCHANGE ACT OF 1934
For the transition period from to
--------------- -------------
Commission file number 0-12220
-------
THE FIRST OF LONG ISLAND CORPORATION
- -------------------------------------------------------------------------------
(Exact Name of Registrant as Specified in Its Charter)
NEW YORK 11-2672906
---------------------------------------------------------------
(State or Other Jurisdiction of (I.R.S. Employer
Incorporation or Organization) Identification No.)
10 Glen Head Road, Glen Head, New York 11545
- ---------------------------------------------------------------
(Address of Principal Executive Offices) (Zip Code)
(516) 671-4900
- ---------------------------------------------------------------
(Registrant's Telephone Number, Including Area Code)
- -------------------------------------------------------------------------------
Not Applicable
- -------------------------------------------------------------------------------
(Former Name, Former Address and Former Fiscal Year, if Changed Since Last
Report.)
Indicate by check mark whether the registrant (1) has filed all reports
required to be filed by Section 13 or 15(d) of the Securities Exchange Act of
1934 during the preceding 12 months (or for such shorter period that the
registrant was required to file such reports), and (2) has been subject to
such filing requirements for the past 90 days. Yes X No .
Indicate the number of shares outstanding of each of the issuer's classes of
common stock, as of the latest practicable date: 2,090,519 Shares of Common
Stock, par value $.10 per share, outstanding as of October 21, 1996.
<PAGE>
THE FIRST OF LONG ISLAND CORPORATION
INDEX
PART I. FINANCIAL INFORMATION Page No.
Item 1. Financial Statements
Consolidated Balance Sheets ........................................... 3
Consolidated Statements of Income ................................... 4
Consolidated Statements of Cash Flows ............................... 5
Consolidated Statements of Changes in Stockholders' Equity .......... 6
Notes to Consolidated Financial Statements .......................... 7
Item 2. Management's Discussion and Analysis of Financial
Condition and Results of Operations ...................... 9
PART II. OTHER INFORMATION
Item 1. Legal Proceedings - None
Item 2. Changes in Securities ........................................ 15
Item 3. Defaults upon Senior Securities - None
Item 4. Submission of Matters to a Vote of Security Holders - None
Item 5. Other Information - None
Item 6. Exhibits and Reports on Form 8-K ............................. 15
SIGNATURES ............................................................ 16
EXHIBITS INDEX ........................................................ 17
PART I. FINANCIAL INFORMATION
<PAGE>
THE FIRST OF LONG ISLAND CORPORATION
Item 1 Financial Statements
CONSOLIDATED BALANCE SHEETS
<TABLE>
<CAPTION>
<S> <C> <C>
September 30, 1996 December 31, 1995
(Unaudited) (Note)
-------------- --------------
ASSETS
Cash and Due From Banks .............................. $ 23,835,447 $ 22,884,445
Federal Funds Sold .................................. 31,000,000 31,400,000
Investment Securities:
Available for sale, at market value ................ 78,377,140 57,556,137
Held to maturity (Market Value $145,108,000 in 1996
and $161,355,000 in 1995) .................... 145,912,940 159,677,530
------------- -------------
Total Investment Securities (Market Value
$223,485,000 in 1996 and $218,911,000 in 1995) 224,290,080 217,233,667
Loans:
Commercial ........................................ 23,538,800 21,900,667
Real Estate ....................................... 118,474,909 115,098,688
Installment ....................................... 10,033,967 9,670,686
------------- -------------
Total Loans ................................. 152,047,676 146,670,041
Less: Unearned Income ............................. (821,451) (795,925)
Allowance for Loan Losses ................... (3,609,474) (3,600,030)
------------- -------------
Net Loans ................................... 147,616,751 142,274,086
Premises and Equipment .............................. 4,992,626 5,092,380
Other Assets ........................................ 7,034,994 6,769,970
------------- -------------
Total Assets ................................ $ 438,769,898 $ 425,654,548
============= =============
LIABILITIES AND STOCKHOLDERS' EQUITY
Deposits:
Demand ............................................. $ 123,642,720 $ 123,640,360
Savings and Money Market ........................... 221,280,557 215,536,599
Time ............................................... 39,398,303 34,777,748
------------- -------------
Total Deposits .............................. 384,321,580 373,954,707
Accrued Taxes, Expenses and Other Liabilities ........ 1,824,087 2,359,177
------------- -------------
Total Liabilities ........................... 386,145,667 376,313,884
STOCKHOLDERS' EQUITY
Common Stock, $.10 Par Value; 5,000,000 Shares
Authorized; Shares Issued and Outstanding:
1996-2,089,769, 1995-2,096,467 ..................... 208,977 209,647
Surplus ............................................. 6,998,370 7,366,485
Retained Earnings ................................... 45,685,704 41,179,300
Unrealized Appreciation (Depreciation)
on Securities Available for Sale, Net ............ (268,820) 585,232
------------- -------------
Total Stockholders' Equity .................. 52,624,231 49,340,664
Total Liabilities and Stockholders' Equity .. $ 438,769,898 $ 425,654,548
============= =============
Note: The balance sheet at December 31, 1995 has been derived from the
audited financial statements at that date.
See notes to consolidated financial statements.
</TABLE>
<PAGE>
THE FIRST OF LONG ISLAND CORPORATION
CONSOLIDATED STATEMENTS OF INCOME
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C>
Three Months Ended Nine Months Ended
September 30, September 30,
1996 1995 1996 1995
---------- --------- ---------- -----------
(Unaudited) (Unaudited) (Unaudited) (Unaudited)
INTEREST INCOME
Loans, Including Fees on Loans .......................... $ 3,352,535 $ 3,316,817 $10,027,653 $ 9,820,980
Federal Funds Sold ...................................... 559,035 558,289 1,370,008 1,345,494
Investment Securities:
Available for sale ...................................... 1,123,715 725,812 3,071,493 2,125,404
Held to maturity ........................................ 2,205,290 2,499,981 6,902,266 7,598,010
----------- ----------- ----------- -----------
Total Interest Income ............................. 7,240,575 7,100,899 21,371,420 20,889,888
INTEREST EXPENSE
Savings and Money Market Deposits ....................... 1,730,753 1,825,583 5,100,174 5,380,923
Time Deposits ........................................... 433,954 452,931 1,263,763 1,280,284
----------- ----------- ----------- -----------
Total Interest Expense ............................ 2,164,707 2,278,514 6,363,937 6,661,207
----------- ----------- ----------- -----------
NET INTEREST INCOME ............................... 5,075,868 4,822,385 15,007,483 14,228,681
Provision for Loan Losses
----------- ----------- ----------- -----------
Net Interest Income After Provision for Loan Losses 5,075,868 4,822,385 15,007,483 14,228,681
NONINTEREST INCOME
Trust Department Income ................................. 297,444 275,189 866,224 806,257
Service Charges on Deposit Accounts ..................... 606,452 493,086 1,787,262 1,460,809
Net Securities Gains .................................... 3,765
Other Income ............................................ 106,223 189,174 289,762 373,976
----------- ----------- ----------- -----------
Total Other Income ................................ 1,010,119 957,449 2,943,248 2,644,807
OTHER OPERATING EXPENSES
Salaries ................................................ 1,581,610 1,527,393 4,714,529 4,535,828
Employee Benefits ....................................... 547,735 586,447 1,718,481 1,710,753
Net Occupancy Expense ................................... 277,656 276,979 880,416 832,247
Equipment Expense ....................................... 195,861 198,655 573,676 571,559
Other Expense ........................................... 735,041 685,424 2,309,573 2,589,369
----------- ----------- ----------- -----------
Total Other Expense ............................... 3,337,903 3,274,898 10,196,675 10,239,756
Income Before Income Taxes ........................ 2,748,084 2,504,936 7,754,056 6,633,732
Provision for Income Taxes ................................ 942,100 853,900 2,620,100 2,206,200
----------- ----------- ----------- -----------
Net Income ........................................ $ 1,805,984 $ 1,651,036 $ 5,133,956 $ 4,427,532
=========== =========== =========== ===========
Net Income Per Share .............................. $ 0.85 $ 0.77 $ 2.41 $ 2.07
=========== =========== =========== ===========
</TABLE>
See notes to consolidated financial statements.
<PAGE>
THE FIRST OF LONG ISLAND CORPORATION
CONSOLIDATED STATEMENTS OF CASH FLOWS
<TABLE>
<CAPTION>
<S> <C> <C>
Nine Months Ended
September 30,
1996 1995
-------------- ------------
(Unaudited) (Unaudited)
OPERATING ACTIVITIES
Net Income ......................................................... $ 5,133,956 $ 4,427,532
Adjustments to reconcile net income to net
cash provided by operating activities:
Provision for depreciation and amortization ............... 472,491 480,006
Accretion of investment securities
premiums, net ........................................... (1,025,360) (1,314,635)
Realized gain on investment securities .................... (3,765)
Realized gain on sale of equipment ........................ (974)
(Increase) decrease in other assets ....................... (718,058) 814,144
Increase in accrued taxes, expenses
and other liabilities ................................... 79,874 287,588
------------ ------------
NET CASH PROVIDED BY OPERATING ACTIVITIES ....................... 3,941,929 4,690,870
INVESTING ACTIVITIES
Proceeds from sales of investment securities Available for Sale .... 265,265
Proceeds from maturities of investment securities Held to Maturity . 46,172,965 52,044,617
Proceeds from maturities of investment securities Available for Sale 3,700,000 6,250,000
Purchase of investment securities Held to Maturity ................. (29,795,775) (44,971,733)
Purchase of investment securities Available for Sale ............... (26,509,261) (9,951,374)
Net increase in loans .............................................. (5,342,665) (333,339)
Purchases of premises and equipment ................................ (380,763) (453,780)
Proceeds from sale of equipment .................................... 9,000
------------ ------------
NET CASH USED IN INVESTING ACTIVITIES ........................... (12,146,499) 2,849,656
FINANCING ACTIVITIES
Net increase in total deposits ..................................... 10,366,873 16,318,861
Cash dividends paid ................................................ (1,242,516) (1,118,912)
Repurchase of Common Stock ......................................... (596,213) (332,503)
Proceeds from exercise of stock options ............................ 227,428 143,205
------------ ------------
NET CASH PROVIDED BY FINANCING ACTIVITIES ....................... 8,755,572 15,010,651
INCREASE IN CASH AND CASH EQUIVALENTS ................................ 551,002 22,551,177
Cash and cash equivalents at beginning of period ..................... 54,284,445 32,012,716
------------ ------------
CASH AND CASH EQUIVALENTS AT END OF PERIOD ...................... $ 54,835,447 $ 54,563,893
============ ============
</TABLE>
The Corporation made interest payments of $6,327,679 and $6,615,501 and tax
payments of $2,699,108 and $2,037,033 for the nine months ended September 30,
1996 and 1995, respectively.
See notes to consolidated financial statements.
<PAGE>
THE FIRST OF LONG ISLAND CORPORATION
CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY (Unaudited)
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C> <C> <C>
Unrealized
Appreciation/
Depreciation
Common Stock Retained on Securities
Shares Amount Surplus Earnings Available for Sale Total
------------ ------------ ------------ ------------ ------------ ------------
Balance January 1, 1995 ............ 1,400,384 $ 140,038 $ 7,619,723 $ 36,214,413 ($ 1,366,569) $ 42,607,605
Net Income ....................... 4,427,532 4,427,532
Exercise of Incentive
Stock Options .................... 6,561 657 142,548 143,205
Repurchase and Retirement of
Common Stock ..................... (8,000) (800) (331,703) (332,503)
Unrealized appreciation on
Securities Available for Sale, Net 1,400,740 1,400,740
Cash Dividend Declared
$.27 per share .................... (558,759) (558,759)
------------ ------------ ------------ ------------ ------------ ------------
Balance September 30, 1995 ......... 1,398,945 $ 139,895 $ 7,430,568 $ 40,083,186 $ 34,171 $ 47,687,820
============ ============ ============ ============ ============ ============
Balance January 1, 1996 ............ 2,096,467 $ 209,647 $ 7,366,485 $ 41,179,300 $ 585,232 $ 49,340,664
Net Income ....................... 5,133,956 5,133,956
Exercise of Incentive
Stock Options .................... 11,719 1,172 226,256 227,428
Repurchase and Retirement of
Common Stock ..................... (18,417) (1,842) (594,371) (596,213)
Unrealized depreciation on
Securities Available for Sale, Net (854,052) (854,052)
Cash Dividend Declared
$.30 per share .................... (627,552) (627,552)
------------ ------------ ------------ ------------ ------------ ------------
Balance September 30, 1996 ......... 2,089,769 $ 208,977 $ 6,998,370 $ 45,685,704 ($ 268,820) $ 52,624,231
============ ============ ============ ============ ============ ============
</TABLE>
See notes to consolidated financial statements.
<PAGE>
THE FIRST OF LONG ISLAND CORPORATION
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Unaudited)
September 30, 1996
Financial Statement Presentation
In the opinion of The First of Long Island Corporation, the accompanying
unaudited interim consolidated financial statements contain all adjustments
(consisting of normal recurring adjustments) necessary to present fairly its
financial position and results of its operations and cash flows for the periods
presented. For further information refer to the consolidated financial
statements and notes thereto included in the Corporation's annual report on Form
10-K for the year ended December 31, 1995.
Earnings Per Share
Earnings per share are calculated by dividing Net Income by the weighted
average number of shares outstanding including common stock equivalents. The
weighted average shares outstanding for the nine month periods ended September
30, 1996 and 1995 are 2,133,995 and 2,130,378, respectively.
Investment Securities
The following table sets forth the Investment Securities for the nine
months ended September 30, 1996:
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C>
Gross Gross
Amortized Unrealized Unrealized Market
Cost Gains Losses Value
------------------------------------------
( In Thousands)
Securities Held to Maturity:
U.S. Treasuries ................... $ 76,453 $ 304 $ 363 $ 76,394
U.S. Government Agencies .......... 31,190 212 1,067 30,335
State and Municipals .............. 31,857 330 183 32,004
Collateralized Mortgage Obligations 6,413 41 79 6,375
Other
------------------------------------------
Total ........................ $145,913 $ 887 $ 1,692 $145,108
Securities Available for Sale:
U.S. Treasuries ................... $ 52,188 $ 279 $ 511 $ 51,956
State and Municipals .............. 9,781 59 51 9,789
Collateralized Mortgage Obligations 16,682 34 211 16,505
Other ............................. 127 127
------------------------------------------
Total ........................ $ 78,778 $ 372 $ 773 $ 78,377
</TABLE>
<PAGE>
The following table sets forth the Investment Securities for the twelve months
ended December 31, 1995:
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C>
Gross Gross
Amortized Unrealized Unrealized Market
Cost Gains Losses Value
------------------------------------------
( In Thousands)
Securities Held to Maturity:
U.S. Treasuries ................... $ 80,861 $ 1,201 $ 49 $ 82,013
U.S. Government Agencies .......... 36,238 405 396 36,247
State and Municipals .............. 33,975 564 91 34,448
Collateralized Mortgage Obligations 8,604 78 35 8,647
-----------------------------------------
Total ........................ $159,678 $ 2,248 $ 571 $161,355
Securities Available for Sale:
U.S. Treasuries ................... $ 38,495 $ 821 $ 23 $ 39,293
State and Municipals .............. 6,779 92 7 6,864
Collateralized Mortgage Obligations 11,281 33 42 11,272
Other ............................. 127 127
-----------------------------------------
Total ........................ $ 56,682 $ 946 $ 72 $ 57,556
</TABLE>
<PAGE>
THE FIRST OF LONG ISLAND CORPORATION
Item 2
Management's Discussion and Analysis of Financial Condition and Results of
Operations
Financial Condition
Total assets of The First of Long Island Corporation at September 30, 1996
were $438.8 million, reflecting an increase of $5.2 million or 1.2% from the
previous quarter end and an increase of $13.1 million or 3.1% from the previous
year end.
Demand deposits at period end totaled $123.6 million, showing an
increase of $1.8 million or 1.5% over the previous quarter end, and level with
the previous year end. On an average balance basis, however, checking accounts,
which comprise the largest part of demand deposits, continued to show growth,
increasing over the comparable 1995 period averages. Such year to date averages
reflect a growth of approximately $8 million or 7.2%. Demand deposits on both an
actual and average balance basis represent 28% of total assets, a percentage
substantially higher than figures reported by like financial institutions as a
group. Savings, money market and other time deposits increased in total by $10.4
million or 4.1% from the previous year end and by $1.7 million or .7% from the
previous quarter end. On an average balance basis, these deposits were higher
than the comparable 1995 period. Historically, the Corporation has relied on its
strong core deposit base as its source of funding, with no reliance on
borrowings or purchased funds. Total deposits on both an actual and average
balance basis represent 88% of total assets.
Earning assets at September 30, 1996 were $402.9 million, an increase
of $1.7 million or .4% from the previous quarter end, and an increase of $12.0
million or 3.1% from the previous year end. Earning assets include federal funds
sold, investment securities, and loans.
Investment securities increased $8.2 million or 3.8% from the previous
quarter end and increased $7.1 million or 3.2% from the previous year end,
offsetting much of the growth in deposits thus far in 1996. Total invested
securities, which is made up of investment securities plus federal funds sold,
represent the Corporation's largest component of earning assets and approximate
58% of total assets for the prior quarters and year end, as well as on an
average balance basis. At period end, of the total invested securities, $51.5
million are short term, that is, with maturities of less than one year. On
average for the year, the amount was $57.2 million. Short term investments
contribute substantially to the Corporation's liquidity. No investment trading
account is maintained. The Corporation does not purchase any noninvestment grade
securities other than occasionally from local issuers.
<PAGE>
Total loans were $152.0 million at September 30, 1996, a decrease of $1.5
million or 1% from the previous quarter end and an increase of $5.4 million or
3.7% from the previous year end. While commercial, installment, and residential
mortgage loans show increases during these periods, commercial mortgage
outstandings have declined overall as payments on old loans have been greater
than bookings of new commercial mortgages. Real estate mortgage loans continue
to make up the major portion of outstandings. Total loans usually run at
approximately 35% of total assets on an actual and average balance basis. The
loan portfolio continues to be comprised of domestic loans only and does not
include participation in transactions commonly known as leveraged buy-outs of
publicly held companies.
The allowance for loan losses at September 30, 1996 was $3.6 million or
2.4% of total loans, remaining level with both the previous quarter and year
ends. No provision for loan losses was deemed necessary thus far this year,
paralleling a similar situation for the previous year. For the current nine
months of 1996, recoveries exceeded charge-offs by $9.4 thousand. Accruing loans
which were past due ninety days or more amounted to $42 thousand compared with
$27 thousand at the previous quarter end and $251 thousand at the previous year
end. Nonaccrual loans were $737 thousand compared with $768 thousand at the
previous quarter end and $843 thousand at the previous year end. The current
allowance as a percent of past due and nonaccrual loans was 314%.
Total stockholders' equity of $52.6 million showed an increase of $2.1
million or 4.1% from the previous quarter end and an increase of $3.3 million or
6.7% from the previous year end. Under Financial Accounting Standards Board
Release No. 115, investment securities determined available for sale are carried
at market value rather than amortized cost in the stockholders' equity section
of the balance sheet. As a result, fluctuations in market value of securities
causes fluctuations in the stockholders' equity. At September 30, 1996,
unrealized depreciation net of taxes for quarter end was $269 thousand, somewhat
lower than the depreciation of $697 thousand recorded at the previous quarter
end, and substantially different from the appreciation of $585 thousand recorded
at the previous year end. While the effects of the aforementioned accounting
release impact the reported net change in stockholders' equity, the effects thus
far have not had a material adverse impact. As mentioned in the June 1996
reporting, a cash dividend was declared in the amount of 30 cents per share. The
dividend was subsequently paid on July 22, 1996 to shareholders of record July
8, 1996. Further, as mentioned in the March 1996 reporting, a three for two
stock split was paid by means of a 50% stock dividend to shareholders of record
on January 8, 1996. All applicable shares and per share amounts have been
retroactively adjusted to reflect the effects of such dividend.
<PAGE>
Liquidity and capital resources continue to exceed substantially
regulatory requirements. The comparison of risk-based capital ratios maintained
at period end to the regulatory minimum requirements were as follows:
Minimum
Required Sept.30 June 30 March 31 Dec. 31
Rate 1996 1996 1996 1995
-------- ------- ------- -------- -----
Total Capital Ratio 8.00% 33.33% 31.84% 31.78% 31.50%
Tier I Capital Ratio 4.00% 32.07% 30.58% 30.52% 30.24%
Leverage Ratio 4.00% 11.99% 11.82% 11.53% 11.59%
Management regularly monitors the asset/liability sensitivity position
to assure maintenance of adequate liquidity and a satisfactory balance between
interest sensitive assets and interest sensitive liabilities.
Results of Operations
Net income for the third quarter of 1996 was $1,806 thousand or $.85
per share compared with $1,651 thousand or $.77 per share for the third quarter
of 1995. This is an increase of 10% in earnings per share.
Net income for the current nine month period was $5,134 thousand or
$2.41 per share compared with $4,428 thousand or $2.07 per share for the same
period of 1995, an increase of $706 thousand or 16%.
As in the first two quarters, a factor favorably influencing earnings
was a decline in noninterest operating expenses as virtually no FDIC insurance
expense was incurred in this third quarter of 1996. This is to be compared with
$192 thousand that was recorded in each of the first two quarters and a $17
thousand net credit that was recorded in the third quarter of 1995. During the
third quarter of 1995, the Bank Insurance Fund was determined to have reached
its legal requirement such that a refund was actually paid to the Corporation in
September. For the last quarter of 1995, FDIC premium expense was a modest $34
thousand. In addition, income was favorably impacted in the third quarter by the
growth in checking balances and service charge income. The increase in service
charge income was principally the result of pricing adjustments which mostly
became effective in October of 1995. There was also good growth in money market
type savings balances, but the benefit to earnings from these balances was
largely offset by a decline in traditional savings balances.
<PAGE>
Net interest income continues as the Corporation's primary source of
income. Net interest income for the quarter ended September 30, 1996 increased
$253 thousand or 5.3% over the third quarter of 1995. Net interest income for
the nine months ended September 30, 1996 increased $779 thousand or 5.5% over
the same period of 1995. The related net interest margin of 5.12%, however, was
less than that of the same nine month period last year by seven basis points,
paralleling the same differential reported at June 30, 1996.
Noninterest income net of securities transactions showed an increase of
$53 thousand or 5.5% for the third quarter of 1996 compared with the third
quarter of 1995, and an increase of $302 thousand or 11.4% for the nine month
period of 1996 compared with the nine month period of 1995. The largest
component of these increases reflect the increase in service charges on deposit
accounts as mentioned above.
There were no gains or losses on the sale of securities during the
current three or nine month periods in comparison to a small gain reported in
the first quarter of 1995.
Operating expenses showed an increase of $63 thousand in the third
quarter of 1996 compared with the third quarter of 1995. For the nine months
ended September 30, 1996, operating expenses decreased in total by $43 thousand
when compared to the similar previous period. The positive variance between the
compared nine month periods was due to the virtual elimination of FDIC insurance
expense. After excluding FDIC insurance, total operating expenses increased 3.3%
in the 1996 nine month period, as compared to the similar 1995 period.
No provisions for loan losses were considered necessary for the current
or previously reported periods.
Return on average assets (ROA) and return on average stockholders'
equity (ROE) for the current nine month period were 1.57% and 13.54%,
respectively, compared with 1.44% and 13.10%, respectively, for the similar
period of 1995.
Other Information
Capital expenditures for the year were budgeted at approximately $1,026
thousand. These expenditures are intended to cover costs of furniture and
equipment, facility improvements, and branch office expansion. Expenditures for
the nine months ended September 30, 1996 amounted to $381 thousand and are
expected to remain below budgeted amounts.
Stock repurchase plans have been approved by the Board of Directors
since 1988, authorizing the Corporation to repurchase shares of its own common
<PAGE>
stock in market or private transactions. Ten such plans have been initiated
since that date involving the repurchase of 20,000 to 25,000 shares per plan.
The tenth plan, which is also the most current one, was approved in November
1995 for 25,000 shares (adjusted to 37,500 shares). At the time of approval,
there were also 16,117 shares (on an adjusted basis) that were available to be
repurchased from the prior plan. The authorization for the latest plan
approximates one and three quarters percent of the Corporation's then
outstanding shares of 1,397,495 (adjusted to 2,096,242 shares). At quarter end,
36,739 shares remain to be repurchased under the current plan. The total number
of repurchases completed during the present nine month period was 16,878 shares.
It is the Corporation's belief that these repurchases of shares will help
maximize shareholder value. The stock purchases are financed through available
Corporate cash.
The subsidiary bank underwent a routine safety and soundness and Bank
Information Systems (BIS) examination during the current third quarter by the
Office of the Comptroller of the Currency. The Office of the Comptroller of the
Currency also recently conducted its separately scheduled examination of the
subsidiary Bank's Trust and Investment Services Department. The Corporation was
examined by Federal Reserve Bank of New York Examiners during the second quarter
of 1996. Management is not aware, nor has it been apprised by any regulatory
authority, of any recommendations that would have a material effect on the
Corporation's liquidity, capital resources and operations.
At their regularly scheduled meeting on July 16, 1996, the Board of
Directors of The First of Long Island Corporation adopted a Shareholder
Protection Rights Plan and declared a dividend of one Right on each outstanding
share of Common Stock. The dividend was paid on July 31, 1996 to shareholders of
record on July 31, 1996. The Rights Plan was not adopted in response to any
specific effort to acquire control of The First of Long Island Corporation.
Rather, it was adopted to deter abusive takeover tactics that can be used to
deprive shareholders of the full value of their investment. The Rights Plan was
filed with the Securities and Exchange Commission under Form 8-A on July 30,
1996.
Also at the above meeting, Mr. Walter C. Teagle III was appointed by
the Board of Directors as a Class I Director. Mr. Teagle is president of Teagle
Management, Inc., a private investment company, as well as president of Metro
Design Systems, Inc., which provides engineering design services to the
telecommunications industry. It is anticipated that Mr. Teagle's name will be
submitted for election to a full two year term at the next Annual Shareholder's
Meeting in April 1997.
The First of Long Island Corporation was organized as a New York
corporation on February 7, 1984 for the purpose of becoming a one bank holding
company. On April 30, 1984 the Corporation commenced operations as a bank
<PAGE>
holding company when it acquired all the outstanding stock of The First National
Bank of Long Island. The Bank, which was chartered under national banking laws
in 1927, currently maintains fifteen offices in Nassau and Suffolk Counties. The
Corporation is not, nor has it been, involved in any acquisitions or mergers.
As referenced in our 1995 Annual Report, the most recent branch office
was opened in January of this year in Great Neck, and research is continuing of
other areas for added Commercial Banking Units as well as for full service
offices.
<PAGE>
THE FIRST OF LONG ISLAND CORPORATION
PART II - OTHER INFORMATION
Item 2. Changes in Securities
A Shareholder Protection Rights Plan was adopted by the Board
of Directors at their regularly scheduled meeting on July 16, 1996,
wherein a dividend of one Right was declared on each outstanding share
of Common Stock. The dividend was paid on July 31, 1996 to shareholders
of record on July 31, 1996. The Rights Plan was not adopted in response
to any specific effort to acquire control of The First of Long Island
Corporation. Rather, it was adopted to deter abusive takeover tactics
that can be used to deprive shareholders of the full value of their
investment. The Rights Plan was filed with the Securities and Exchange
Commission under Form 8-A on July 30, 1996.
Item 6. Exhibits and Reports on Form 8-K
(a) Exhibits: The following exhibits are incorporated herein
by reference:
(4) Shareholder Protection Rights Agreement
(27) Financial Data Schedule
(b) Reports on Form 8-K - Adoption of Shareholder
Protection Rights Agreement Electronically filed
under Form 8-K on July 30, 1996.
<PAGE>
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934,
the registrant has duly caused this report to be signed on its behalf by the
undersigned thereunto duly authorized.
THE FIRST OF LONG ISLAND CORPORATION
November 4, 1996 By: /s/ J. WILLIAM JOHNSON
- ------------------------- ---------------------------------
Date J. William Johnson, President,
Chairman of the Board
and Chief Executive Officer
November 4, 1996 By: /s/ WILLIAM J. WHITE
- ------------------------ ---------------------------------
Date William J. White, Vice President
and Treasurer (Chief Financial
Officer)
<PAGE>
EXHIBIT INDEX
Exhibit No. Description Page
(4) Shareholder Protection Rights Agreement, *
dated as of July 16, 1996 (the
"Rights Agreement"), between The
First of Long Island Corporation and
The First National Bank of Long Island,
as Rights Agent.
(27) Financial Data Schedule 18
* Incorporated by reference to Exhibit (1) of the Registration Statement on
Form 8-A of The First of Long Island Corporation filed on July 30, 1996.
<TABLE> <S> <C>
<ARTICLE> 9
<LEGEND>
This schedule contains summary financial information extracted from the
consolidated financial statements and management's discussion and analysis of
financial condition and results of operations contained in the FORM 10-Q and is
qualified in its entriety by reference to such financial statements.
</LEGEND>
<CIK> 0000740663
<NAME> THE FIRST OF LONG ISLAND CORPORATION
<S> <C>
<PERIOD-TYPE> 9-MOS
<FISCAL-YEAR-END> DEC-31-1995
<PERIOD-START> JAN-01-1996
<PERIOD-END> SEP-30-1996
<CASH> 23,835,447
<INT-BEARING-DEPOSITS> 0
<FED-FUNDS-SOLD> 31,000,000
<TRADING-ASSETS> 0
<INVESTMENTS-HELD-FOR-SALE> 78,377,140
<INVESTMENTS-CARRYING> 145,912,940
<INVESTMENTS-MARKET> 145,108,000
<LOANS> 152,047,676
<ALLOWANCE> (3,609,474)
<TOTAL-ASSETS> 438,769,898
<DEPOSITS> 384,321,580
<SHORT-TERM> 0
<LIABILITIES-OTHER> 1,824,087
<LONG-TERM> 0
0
0
<COMMON> 208,977
<OTHER-SE> 52,415,254
<TOTAL-LIABILITIES-AND-EQUITY> 438,769,898
<INTEREST-LOAN> 10,027,653
<INTEREST-INVEST> 9,973,759
<INTEREST-OTHER> 1,370,008
<INTEREST-TOTAL> 21,371,420
<INTEREST-DEPOSIT> 6,363,937
<INTEREST-EXPENSE> 6,363,937
<INTEREST-INCOME-NET> 15,007,483
<LOAN-LOSSES> 0
<SECURITIES-GAINS> 0
<EXPENSE-OTHER> 10,196,675
<INCOME-PRETAX> 7,754,056
<INCOME-PRE-EXTRAORDINARY> 7,754,056
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 5,133,956
<EPS-PRIMARY> 2.41
<EPS-DILUTED> 2.41
<YIELD-ACTUAL> 0
<LOANS-NON> 737,000
<LOANS-PAST> 42,000
<LOANS-TROUBLED> 0
<LOANS-PROBLEM> 0
<ALLOWANCE-OPEN> 3,600,030
<CHARGE-OFFS> 15,372
<RECOVERIES> 24,816
<ALLOWANCE-CLOSE> 3,609,474
<ALLOWANCE-DOMESTIC> 0
<ALLOWANCE-FOREIGN> 0
<ALLOWANCE-UNALLOCATED> 0
</TABLE>
