UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, DC 20549

____________

FORM 10-Q

(Mark One)

[X] QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended June 30, 2020

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 001-32964

THE FIRST OF LONG ISLAND CORPORATION

(Exact name of registrant as specified in its charter)

New York	11-2672906
(State or other jurisdiction of incorporation or organization)	(I.R.S. Employer Identification No.)
10 Glen Head Road, Glen Head, NY	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)

Securities registered pursuant to Section 12(b) of the Act:

Title of Each Class	Trading Symbol	Name of Each Exchange on Which Registered
Common stock, $0.10 par value per share	FLIC	Nasdaq

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 by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files).

Yes x   No ¨ 

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.

Large Accelerated Filer ¨	Accelerated Filer x
Non-Accelerated Filer ¨	Emerging Growth Company ¨
Smaller Reporting Company ¨

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ¨

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).

Yes ¨   No x 

As of July 31, 2020, the registrant had 23,863,402 shares of common stock, $0.10 par value per share, outstanding.

TABLE OF CONTENTS

PART I.	FINANCIAL INFORMATION
ITEM 1.	Financial Statements (Unaudited)
	Consolidated Balance Sheets	1
	Consolidated Statements of Income	2
	Consolidated Statements of Comprehensive Income	3
	Consolidated Statements of Changes in Stockholders’ Equity	4
	Consolidated Statements of Cash Flows	6
	Notes to Unaudited Consolidated Financial Statements	7
ITEM 2.	Management’s Discussion and Analysis of Financial Condition and Results of Operations	21
ITEM 3.	Quantitative and Qualitative Disclosures About Market Risk	30
ITEM 4.	Controls and Procedures	32
PART II.	OTHER INFORMATION
ITEM 1.	Legal Proceedings	32
ITEM 1A.	Risk Factors	32
ITEM 2.	Unregistered Sales of Equity Securities and Use of Proceeds	32
ITEM 3.	Defaults Upon Senior Securities	32
ITEM 4.	Mine Safety Disclosures	32
ITEM 5.	Other Information	32
ITEM 6.	Exhibits	32
	Signatures	34

PART 1. FINANCIAL INFORMATION

ITEM 1. FINANCIAL STATEMENTS

CONSOLIDATED BALANCE SHEETS (UNAUDITED)

	June 30,		December 31,
(dollars in thousands)	2020		2019
Assets:
Cash and cash equivalents	$	173,740	$	38,968
Investment securities available-for-sale, at fair value		748,032		697,544
Loans:
Commercial and industrial		104,673		103,879
SBA Paycheck Protection Program		165,704		—
Secured by real estate:
Commercial mortgages		1,351,542		1,401,289
Residential mortgages		1,470,181		1,621,419
Home equity lines		58,945		59,231
Consumer and other		1,416		2,431
		3,152,461		3,188,249
Allowance for credit losses		(34,051)		(29,289)
		3,118,410		3,158,960
Restricted stock, at cost		29,543		30,899
Bank premises and equipment, net		39,463		40,017
Right-of-use asset - operating leases		13,675		14,343
Bank-owned life insurance		84,251		83,119
Pension plan assets, net		18,407		18,275
Deferred income tax benefit		3,856		317
Other assets		18,951		15,401
	$	4,248,328	$	4,097,843
Liabilities:
Deposits:
Checking	$	1,152,945	$	911,978
Savings, NOW and money market		1,701,266		1,720,599
Time, $100,000 and over		213,262		242,359
Time, other		255,449		269,080
		3,322,922		3,144,016
Short-term borrowings		60,019		190,710
Long-term debt		439,972		337,472
Operating lease liability		14,561		15,220
Accrued expenses and other liabilities		21,116		21,317
		3,858,590		3,708,735
Stockholders' Equity:
Common stock, par value $0.10 per share:
Authorized, 80,000,000 shares;
Issued and outstanding, 23,848,626 and 23,934,632 shares		2,385		2,393
Surplus		106,047		111,744
Retained earnings		283,379		274,376
		391,811		388,513
Accumulated other comprehensive income (loss), net of tax		(2,073)		595
		389,738		389,108
	$	4,248,328	$	4,097,843

See notes to unaudited consolidated financial statements

1

CONSOLIDATED STATEMENTS OF INCOME (UNAUDITED)

	Six Months Ended
	Six Months Ended June 30,				Three Months Ended June 30,
(in thousands, except per share data)	2020		2019		2020		2019
Interest and dividend income:
Loans	$	56,888	$	59,029	$	27,957	$	29,613
Investment securities:
Taxable		6,749		7,968		3,323		3,923
Nontaxable		5,066		6,046		2,501		2,954
		68,703		73,043		33,781		36,490
Interest expense:
Savings, NOW and money market deposits		6,639		8,841		2,359		4,841
Time deposits		5,928		7,331		2,886		3,933
Short-term borrowings		885		2,507		266		542
Long-term debt		4,157		3,675		2,162		1,895
		17,609		22,354		7,673		11,211
Net interest income		51,094		50,689		26,108		25,279
Provision (credit) for credit losses		2,450		(35)		92		422
Net interest income after provision (credit) for credit losses		48,644		50,724		26,016		24,857
Noninterest income:
Investment Management Division income		1,067		998		519		517
Service charges on deposit accounts		1,606		1,485		619		780
Other		2,916		2,678		1,433		1,420
		5,589		5,161		2,571		2,717
Noninterest expense:
Salaries and employee benefits		18,913		17,981		9,639		8,723
Occupancy and equipment		6,133		5,840		3,061		2,903
Other		5,472		6,090		2,960		3,150
		30,518		29,911		15,660		14,776
Income before income taxes		23,715		25,974		12,927		12,798
Income tax expense		3,808		4,389		2,168		2,054
Net income	$	19,907	$	21,585	$	10,759	$	10,744
Weighted average:
Common shares		23,871,245		25,051,412		23,838,224		24,821,026
Dilutive stock options and restricted stock units		39,135		169,048		23,638		181,751
		23,910,380		25,220,460		23,861,862		25,002,777
Earnings per share:
Basic		$0.83		$0.86		$0.45		$0.43
Diluted		0.83		0.86		0.45		0.43
Cash dividends declared per share		$0.36		$0.34		$0.18		$0.17

See notes to unaudited consolidated financial statements 

2

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (UNAUDITED) 

	Six Months Ended June 30,				Three Months Ended June 30,
(in thousands)	2020		2019		2020		2019
Net income	$	19,907	$	21,585	$	10,759	$	10,744
Other comprehensive income (loss):
Change in net unrealized holding gains (losses) on ‎  available-for-sale securities		(408)		15,631		8,442		7,214
Change in funded status of pension plan		—		176		—		88
Change in net unrealized loss on derivative instruments		(3,402)		(4,058)		362		(2,513)
Other comprehensive income (loss) before income taxes		(3,810)		11,749		8,804		4,789
Income tax expense (benefit)		(1,142)		3,567		2,636		1,469
Other comprehensive income (loss)		(2,668)		8,182		6,168		3,320
Comprehensive income	$	17,239	$	29,767	$	16,927	$	14,064

See notes to unaudited consolidated financial statements 

3

CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY (UNAUDITED)