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 March 31, 2013

or

o 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)

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 o

Indicate by check mark whether the registrant has submitted electronically and posted on its corporate Web site, if any, every Interactive Data File required to be submitted and posted 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 and post such files).   Yes x  No o

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

Large accelerated filer o	Accelerated filer x
Non-accelerated filer o	Smaller reporting company o

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).  Yes o  No x

Indicate the number of shares outstanding of each of the issuer's classes of common stock, as of the latest practicable date.

Title of Each Class	Outstanding at May 1, 2013
Common stock, $.10 par value per share	9,078,296

TABLE OF CONTENTS
PART I.	FINANCIAL INFORMATION
ITEM 1.	Financial Statements
	Consolidated Balance Sheets (Unaudited) - March 31, 2013 and December 31, 2012	1
	Consolidated Statements of Income (Unaudited) – Three Months Ended March 31, 2013 and 2012	2
	Consolidated Statements of Comprehensive Income (Unaudited) – Three Months Ended March 31, 2013 and 2012	3
	Consolidated Statements of Changes in Stockholders’ Equity (Unaudited) - Three Months Ended March 31, 2013 and 2012	4
	Consolidated Statements of Cash Flows (Unaudited) - Three Months Ended March 31, 2013 and 2012	5
	Notes to Unaudited Consolidated Financial Statements	6
ITEM 2.	Management’s Discussion and Analysis of Financial Condition and Results of Operations	20
ITEM 3.	Quantitative and Qualitative Disclosures About Market Risk	26
ITEM 4.	Controls and Procedures	27
PART II.	OTHER INFORMATION
ITEM 1.	Legal Proceedings	28
ITEM 1A.	Risk Factors	28
ITEM 2.	Unregistered Sales of Equity Securities and Use of Proceeds	28
ITEM 3.	Defaults Upon Senior Securities	28
ITEM 4.	Mine Safety Disclosures	28
ITEM 5.	Other Information	28
ITEM 6.	Exhibits	28
	Signatures	29

PART 1.  FINANCIAL INFORMATION

ITEM 1.  FINANCIAL STATEMENTS

CONSOLIDATED BALANCE SHEETS (UNAUDITED)

	March 31,			December 31,
(dollars in thousands)	2013			2012
Assets:
Cash and due from banks	$	26,545		$	41,871
Temporary investments		463			320
Cash and cash equivalents		27,008			42,191
Investment securities:
Held-to-maturity (fair value of $43,786 and $46,958)		41,296			44,167
Available-for-sale, at fair value		851,411			817,434
		892,707			861,601
Loans:
Commercial and industrial		64,472			54,339
Secured by real estate:
Commercial mortgages		513,242			504,368
Residential mortgages		502,471			502,367
Home equity lines		79,395			81,975
Consumer		5,234			4,335
		1,164,814			1,147,384
Allowance for loan losses		(18,564	)		(18,624	)
		1,146,250			1,128,760
Restricted stock, at cost		13,014			13,104
Bank premises and equipment, net		24,622			24,563
Bank-owned life insurance		13,794			13,665
Pension plan assets, net		10,957			10,900
Prepaid FDIC assessment		1,617			1,855
Other assets		10,702			11,651
	$	2,140,671		$	2,108,290
Liabilities:
Deposits:
Checking	$	513,381		$	528,940
Savings, NOW and money market		901,644			844,583
Time, $100,000 and over		163,644			168,437
Time, other		86,835			91,116
		1,665,504			1,633,076
Short-term borrowings		105,480			103,634
Long-term debt		145,000			145,000
Accrued expenses and other liabilities		7,895			7,880
Deferred income taxes payable		10,643			13,330
		1,934,522			1,902,920
Stockholders' Equity:
Common stock, par value $.10 per share:  Authorized 20,000,000 shares; Issued and outstanding, 9,075,553 and 9,001,686 shares		908			900
Surplus		44,405			42,643
Retained Earnings		148,462			145,087
		193,775			188,630
Accumulated other comprehensive income, net of tax		12,374			16,740
		206,149			205,370
	$	2,140,671		$	2,108,290
See notes to consolidated financial statements

1

CONSOLIDATED STATEMENTS OF INCOME (UNAUDITED)

	Three Months Ended March 31,
(dollars in thousands, except per share data)	2013			2012
Interest and dividend income:
Loans	$	12,332		$	12,133
Investment securities:
Taxable		2,629			4,153
Nontaxable		3,158			3,225
		18,119			19,511
Interest expense:
Savings, NOW and money market deposits		609			1,031
Time deposits		1,282			1,476
Short-term borrowings		67			93
Long-term debt		991			1,877
		2,949			4,477
Net interest income		15,170			15,034
Provision for loan losses (credit)		(192	)		1,123
Net interest income after provision for loan losses (credit)		15,362			13,911
Noninterest income:
Investment Management Division income		411			400
Service charges on deposit accounts		709			778
Net gains on sales of securities		4			108
Other		550			418
		1,674			1,704
Noninterest expense:
Salaries		4,201			4,048
Employee benefits		1,412			1,282
Occupancy and equipment		1,998			1,856
Other		2,169			1,991
		9,780			9,177
Income before income taxes		7,256			6,438
Income tax expense		1,617			1,287
Net income	$	5,639		$	5,151
Weighted average:
Common shares		9,039,035			8,835,830
Dilutive stock options and restricted stock units		69,301			85,486
		9,108,336			8,921,316
Earnings per share:
Basic		$.62			$.58
Diluted		$.62			$.58
Cash dividends declared per share		$.25			$.23
See notes to consolidated financial statements

2

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (UNAUDITED)

	Three Months Ended March 31,
(dollars in thousands)	2013			2012
Net income	$	5,639		$	5,151
Other comprehensive income (loss):
Unrealized holding gains (losses) on available-for-sale securities, net		(7,403	)		909
Amortization of net actuarial loss and prior service cost included in net periodic pension cost		163			172
Other comprehensive income (loss) before income taxes		(7,240	)		1,081
Income tax expense (benefit)		(2,874	)		430
Other comprehensive income (loss)		(4,366	)		651
Comprehensive Income	$	1,273		$	5,802
See notes to consolidated financial statements

3

CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY (UNAUDITED)

	Three Months Ended March 31, 2013
												Accumulated
												Other
	Common Stock								Retained			Comprehensive
(dollars in thousands)	Shares			Amount		Surplus			Earnings			Income			Total
Balance, January 1, 2013		9,001,686		$	900	$	42,643		$	145,087		$	16,740		$	205,370
Net income										5,639						5,639
Other comprehensive loss													(4,366	)		(4,366	)
Repurchase of common stock		(3,211	)				(95	)								(95	)
Common stock issued under stock compensation plans, including tax benefit		40,838			4		716									720
Common stock issued under dividend reinvestment and stock purchase plan		36,240			4		1,005									1,009
Stock-based compensation							136									136
Cash dividends declared										(2,264	)					(2,264	)
Balance, March 31, 2013		9,075,553		$	908	$	44,405		$	148,462		$	12,374		$	206,149

	Three Months Ended March 31, 2012
													Accumulated
													Other
	Common Stock									Retained			Comprehensive
(dollars in thousands)	Shares			Amount			Surplus			Earnings			Income		Total
Balance, January 1, 2012		8,793,932		$	879		$	37,507		$	133,273		$	17,688	$	189,347
Net income											5,151					5,151
Other comprehensive income														651		651
Repurchase of common stock		(6,064	)		(1	)		(161	)							(162	)
Common stock issued under stock compensation plans, including tax benefit		65,461			7			1,027								1,034
Common stock issued under dividend reinvestment and stock purchase plan		18,861			2			468								470
Stock-based compensation								242								242
Cash dividends declared											(2,042	)				(2,042	)
Balance, March 31, 2012		8,872,190		$	887		$	39,083		$	136,382		$	18,339	$	194,691
See notes to consolidated financial statements

4

CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED)

	Three Months Ended March 31,
(dollars in thousands)	2013			2012
Cash Flows From Operating Activities:
Net income	$	5,639		$	5,151
Adjustments to reconcile net income to net cash provided by operating activities:
Provision for loan losses (credit)		(192	)		1,123
Deferred income tax provision		187			206
Depreciation and amortization		711			735
Premium amortization on investment securities, net		2,233			2,290
Net gains on sales of securities		(4	)		(108	)
Stock-based compensation expense		136			242
Accretion of cash surrender value on bank owned life insurance		(129	)		(118	)
Decrease in prepaid FDIC assessment		238			230
Pension expense		106			174
Decrease in other assets		949			563
Increase (decrease) in accrued expenses and other liabilities		15			(296	)
Net cash provided by operating activities		9,889			10,192
Cash Flows From Investing Activities:
Proceeds from sales of held-to-maturity securities		722			-
Proceeds from sales of available-for-sale securities		1,376			5,108
Proceeds from maturities and redemptions of investment securities:
Held-to-maturity		2,456			5,473
Available-for-sale		36,868			32,659
Purchases of investment securities:
Held-to-maturity		(273	)		(47	)
Available-for-sale		(81,887	)		(67,022	)
Net increase in loans		(17,298	)		(31,626	)
Net decrease in restricted stock		90			225
Purchases of premises and equipment, net		(770	)		(2,158	)
Net cash used in investing activities		(58,716	)		(57,388	)
Cash Flows From Financing Activities:
Net increase in deposits		32,428			58,317
Net increase (decrease) in short-term borrowings		1,846			(4,528	)
Proceeds from issuance of common stock under dividend reinvestment and stock purchase plan		1,009			470
Proceeds from exercise of stock options		669			942
Tax benefit from stock compensation plans		51			92
Repurchase and retirement of common stock		(95	)		(162	)
Cash dividends paid		(2,264	)		(2,023	)
Net cash provided by financing activities		33,644			53,108
Net (decrease) increase in cash and cash equivalents		(15,183	)		5,912
Cash and cash equivalents, beginning of year		42,191			29,495
Cash and cash equivalents, end of period	$	27,008		$	35,407
Supplemental Information:
Cash paid for:
Interest	$	2,522		$	4,280
Income taxes		124			363
Noncash investing and financing activities:
Cash dividends payable		-			2,042
Loans transferred from portfolio to other real estate owned and held-for-sale		425			250
See notes to consolidated financial statements

5

N O T E S   T O   C O N S O L I D A T E D   F I N A N C I A L   S T A T E M E N T S

1 - BASIS OF PRESENTATION

The accounting and reporting policies of The First of Long Island Corporation reflect banking industry practice and conform to generally accepted accounting principles in the United States.  In preparing the consolidated financial statements, management is required to make estimates, such as the allowance for loan losses, and assumptions that affect the reported asset and liability balances and revenue and expense amounts and the disclosure of contingent assets and liabilities.  Actual results could differ significantly from those estimates.

The consolidated financial statements include the accounts of The First of Long Island Corporation and its wholly-owned subsidiary, The First National Bank of Long Island.  The Bank has two wholly owned subsidiaries: The First of Long Island Agency, Inc., a licensed insurance agency under the laws of the State of New York; and, FNY Service Corp., an investment company.  The Bank and FNY Service Corp. jointly own another subsidiary, The First of Long Island REIT, Inc., a real estate investment trust.  The consolidated entity is referred to as the “Corporation” and the Bank and its subsidiaries are collectively referred to as the “Bank.”  All intercompany balances and amounts have been eliminated. 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, 2012.

The consolidated financial information included herein as of and for the periods ended March 31, 2013 and 2012 is unaudited.  However, such information reflects all adjustments which are, in the opinion of management, necessary for a fair statement of results for the interim periods.  The December 31, 2012 consolidated balance sheet was derived from the Corporation's December 31, 2012 audited consolidated financial statements.  When appropriate, items in the prior year financial statements are reclassified to conform to the current period presentation.

2 - COMPREHENSIVE INCOME

Comprehensive income includes net income and other comprehensive income or loss.  Other comprehensive income or loss includes revenues, expenses, gains and losses that under generally accepted accounting principles are included in comprehensive income but excluded from net income.  Other comprehensive income or loss for the Corporation consists of unrealized holding gains or losses on available-for-sale securities and changes in the funded status of the Bank’s defined benefit pension plan.  Accumulated other comprehensive income is recognized as a separate component of stockholders’ equity.

The components of other comprehensive income (loss) and the related tax effects are as follows:

	Three Months Ended March 31,
	2013			2012
	(in thousands)
Unrealized holding gains (losses) on available-for-sale securities:
Change arising during period	$	(7,416	)	$	1,017
Reclassification adjustment for losses (gains) included in net income (1)		13			(108	)
Net unrealized gains (losses) on available-for-sale securities		(7,403	)		909
Tax effect		(2,939	)		361
		(4,464	)		548
Amortization included in net periodic pension cost:
Prior service cost (2)		6			6
Net actuarial loss (2)		157			166
		163			172
Tax effect		65			69
		98			103
Other comprehensive income (loss)	$	(4,366	)	$	651

(1) Reclassification adjustment represents net realized gains or losses arising from the sale of available-for-sale securities. These net realized gains or losses are included in the consolidated statements of income in line item, “Net gains on sales of securities.”  The income tax expense (benefit) related to these net realized gains or losses was $(5,000) and $43,000 for the first three months of 2013 and 2012, respectively, and is included in the consolidated statements of income in line item, “Income tax expense.”

(2) Represents the amortization into expense of prior service cost and net actuarial loss relating to the Corporation’s defined benefit pension plan.  These items are included in net periodic pension cost (see Note 6) and in the consolidated statements of income in line item, “Employee benefits.”  The income tax expense relating to these costs was $65,000 and $69,000 for the first three months of 2013 and 2012, respectively, and is included in the consolidated statements of income in line item, “Income tax expense.”

6

The following sets forth the components of accumulated other comprehensive income, net of tax:

				Current
	Balance			Period			Balance
	12/31/12			Change			3/31/13
	(in thousands)
Unrealized holding gains on available-for-sale securities	$	22,720		$	(4,464	)	$	18,256
Unrealized net actuarial loss and prior service cost on pension plan		(5,980	)		98			(5,882	)
Accumulated other comprehensive income, net of tax	$	16,740		$	(4,366	)	$	12,374

3 - INVESTMENT SECURITIES

The following tables set forth the amortized cost and estimated fair values of the Bank’s investment securities.

	March 31, 2013
			Gross		Gross
	Amortized		Unrealized		Unrealized			Fair
	Cost		Gains		Losses			Value
Held-to-Maturity Securities:	(in thousands)
State and municipals	$	34,718	$	1,973	$	-		$	36,691
Pass-through mortgage securities		3,114		286		-			3,400
Collateralized mortgage obligations		3,464		231		-			3,695
	$	41,296	$	2,490	$	-		$	43,786
Available-for-Sale Securities:
State and municipals	$	323,323	$	20,124	$	(521	)	$	342,926
Pass-through mortgage securities		143,851		1,952		(304	)		145,499
Collateralized mortgage obligations		353,963		10,306		(1,283	)		362,986
	$	821,137	$	32,382	$	(2,108	)	$	851,411
	December 31, 2012
			Gross		Gross
	Amortized		Unrealized		Unrealized			Fair
	Cost		Gains		Losses			Value
Held-to-Maturity Securities:		(in thousands)
State and municipals	$	36,255	$	2,182	$	-		$	38,437
Pass-through mortgage securities		3,782		342		-			4,124
Collateralized mortgage obligations		4,130		267		-			4,397
	$	44,167	$	2,791	$	-		$	46,958
Available-for-Sale Securities:
State and municipals	$	307,958	$	24,703	$	(148	)	$	332,513
Pass-through mortgage securities		82,863		2,093		-			84,956
Collateralized mortgage obligations		388,936		12,202		(1,173	)		399,965
	$	779,757	$	38,998	$	(1,321	)	$	817,434

At March 31, 2013 and December 31, 2012, investment securities with a carrying value of $253,417,000 and $245,365,000, respectively, were pledged as collateral to secure public deposits and borrowed funds.

There were no holdings of any one issuer, other than the U.S. Government and its agencies, in an amount greater than 10% of stockholders’ equity at March 31, 2013 and December 31, 2012.

7

Securities With Unrealized Losses.The following tables set forth securities with unrealized losses presented by length of time the securities have been in a continuous unrealized loss position.

	March 31, 2013
	Less than					12 Months
	12 Months					or More					Total
	Fair		Unrealized			Fair		Unrealized			Fair		Unrealized
	Value		Loss			Value		Loss			Value		Loss
	(in thousands)
State and municipals	$	37,274	$	(518	)	$	326	$	(3	)	$	37,600	$	(521	)
Pass-through mortgage securities		64,945		(304	)		-		-			64,945		(304	)
Collateralized mortgage obligations		95,419		(1,143	)		1,710		(140	)		97,129		(1,283	)
Total temporarily impaired	$	197,638	$	(1,965	)	$	2,036	$	(143	)	$	199,674	$	(2,108	)

	December 31, 2012
	Less than					12 Months
	12 Months					or More					Total
	Fair		Unrealized			Fair		Unrealized			Fair		Unrealized
	Value		Loss			Value		Loss			Value		Loss
	(in thousands)
State and municipals	$	12,765	$	(148	)	$	-	$	-		$	12,765	$	(148	)
Collateralized mortgage obligations		92,674		(1,011	)		6,170		(162	)		98,844		(1,173	)
Total temporarily impaired	$	105,439	$	(1,159	)	$	6,170	$	(162	)	$	111,609	$	(1,321	)

Because the unrealized losses reflected in the preceding tables are deemed by management to be attributable to changes in interest rates and not credit losses, and because management does not have the intent to sell these securities and it is not more likely than not that it will be required to sell these securities before their anticipated recovery, the Bank does not consider these securities to be other-than-temporarily impaired at March 31, 2013.

Sales of Available-for-Sale Securities.Sales of available-for-sale securities were as follows:

	Three Months Ended
	March 31,
	2013			2012
	(in thousands)
Proceeds	$	1,376		$	5,108
Gross gains	$	36		$	108
Gross losses		(49	)		-
Net gain (loss)	$	(13	)	$	108

The income tax expense (benefit) related to these net realized gains or losses was $(5,000) and $43,000 for the three months ended March 31, 2013 and 2012, respectively.

Sales of Held-to-Maturity Securities.  During the first quarter of 2013, the Bank sold municipal securities of two issuers that were classified as held-to-maturity securities. These sales were in response to a significant deterioration in the creditworthiness of the issuers.  The securities sold had a carrying value of $705,000 at the time of sale and the Bank realized a gain upon sale of $17,000.

8

Maturities.  The following table sets forth by maturity the amortized cost and fair value of the Bank’s state and municipal securities at March 31, 2013 based on the earlier of their stated maturity or, if applicable, their pre-refunded date.  The remaining securities in the Bank’s investment securities portfolio are mortgage-backed securities, consisting of pass-through securities and collateralized mortgage obligations.  Although these securities are expected to have substantial periodic repayments they are reflected in the table below in aggregate amounts.

	Amortized Cost		Fair Value
Held-to-Maturity Securities:	(in thousands)
Within one year	$	7,335	$	7,471
After 1 through 5 years		11,870		12,641
After 5 through 10 years		13,757		14,690
After 10 years		1,756		1,889
Mortgage-backed securities		6,578		7,095
	$	41,296	$	43,786
Available-for-Sale Securities:
Within one year	$	4,668	$	4,745
After 1 through 5 years		13,590		14,387
After 5 through 10 years		47,572		48,969
After 10 years		257,493		274,825
Mortgage-backed securities		497,814		508,485
	$	821,137	$	851,411

9

4 - LOANS

The following tables set forth by class of loans as of March 31, 2013 and December 31, 2012: (1) the amount of loans individually evaluated for impairment and the portion of the allowance for loan losses allocable to such loans; and (2) the amount of loans collectively evaluated for impairment and the portion of the allowance for loan losses allocable to such loans.  The tables also set forth by class of loans the activity in the allowance for loan losses for the three months ended March 31, 2013 and 2012.  Construction and land development loans, if any, are included with commercial mortgages in the following tables.

	2013
			Commercial Mortgages								Residential Mortgages
														Revolving
	Commercial							Owner			Closed			Home
	& Industrial		Multifamily		Other			Occupied			End			Equity		Consumer		Total
	(in thousands)
Loans:
Individually evaluated for impairment	$	44	$	1,097	$	1,761		$	174		$	4,410		$	378	$	-	$	7,864
Collectively evaluated for impairment		64,428		291,205		135,030			83,975			498,061			79,017		5,234		1,156,950
	$	64,472	$	292,302	$	136,791		$	84,149		$	502,471		$	79,395	$	5,234	$	1,164,814
Allocation of allowance for loan losses:
Individually evaluated for impairment	$	-	$	-	$	-		$	-		$	747		$	-	$	-	$	747
Collectively evaluated for impairment		941		5,482		1,767			1,152			6,684			1,640		151		17,817
	$	941	$	5,482	$	1,767		$	1,152		$	7,431		$	1,640	$	151	$	18,564
Activity in allowance for loan losses:
Beginning balance at 1/1/13	$	834	$	5,342	$	1,978		$	1,163		$	7,729		$	1,453	$	125	$	18,624
Chargeoffs		-		-		-			-			-			-		3		3
Recoveries		18		-		113			-			-			-		4		135
Provision for loan losses (credit)		89		140		(324	)		(11	)		(298	)		187		25		(192	)
Ending balance at 3/31/13	$	941	$	5,482	$	1,767		$	1,152		$	7,431		$	1,640	$	151	$	18,564

	2012
Loans:
Individually evaluated for impairment	$	48	$	1,105	$	1,773		$	174		$	5,028	$	382	$	-	$	8,510
Collectively evaluated for impairment		54,291		277,398		140,213			83,705			497,339		81,593		4,335		1,138,874
	$	54,339	$	278,503	$	141,986		$	83,879		$	502,367	$	81,975	$	4,335	$	1,147,384
Allocation of allowance for loan losses:
Individually evaluated for impairment	$	-	$	-	$	-		$	-		$	567	$	-	$	-	$	567
Collectively evaluated for impairment		834		5,342		1,978			1,163			7,162		1,453		125		18,057
	$	834	$	5,342	$	1,978		$	1,163		$	7,729	$	1,453	$	125	$	18,624
Activity in allowance for loan losses:
Beginning balance at 1/1/12	$	699	$	5,365	$	2,316		$	1,388		$	5,228	$	1,415	$	161	$	16,572
Chargeoffs		-		-		-			-			-		450		4		454
Recoveries		2		-		5			-			-		-		1		8
Provision for loan losses (credit)		142		102		(59	)		(140	)		366		710		2		1,123
Ending balance at 3/13/12	$	843	$	5,467	$	2,262		$	1,248		$	5,594	$	1,675	$	160	$	17,249

For individually impaired loans, the following tables set forth by class of loans at March 31, 2013 and December 31, 2012 the recorded investment, unpaid principal balance and related allowance.  The tables also set forth the average recorded investment of individually impaired loans and interest income recognized while the loans were impaired during the three months ended March 31, 2013 and 2012.  The recorded investment is the outstanding principal balance of the loans less any direct chargeoffs and plus or minus net deferred loan costs and fees.  The unpaid principal balance is the outstanding principal balance of the loans.

10

							Three Months Ended
	March 31, 2013						March 31, 2013
			Unpaid				Average		Interest
	Recorded		Principal		Related		Recorded		Income
	Investment		Balance		Allowance		Investment		Recognized
	(in thousands)
With no related allowance recorded:
Commercial and industrial	$	44	$	44	$	-	$	46	$	1
Commercial mortgages:
Multifamily		1,097		1,093		-		1,101		10
Other		1,761		1,762		-		1,764		25
Owner-occupied		174		174		-		174		-
Residential mortgages:
Closed end		575		576		-		577		-
Revolving home equity		378		376		-		380		-
With an allowance recorded:
Residential mortgages - closed end		3,835		3,818		747		3,840		21
Total:
Commercial and industrial		44		44		-		46		1
Commercial mortgages:
Multifamily		1,097		1,093		-		1,101		10
Other		1,761		1,762		-		1,764		25
Owner-occupied		174		174		-		174		-
Residential mortgages:
Closed end		4,410		4,394		747		4,417		21
Revolving home equity		378		376		-		380		-
	$	7,864	$	7,843	$	747	$	7,882	$	57

							Three Months Ended
	December 31, 2012						March 31, 2012
			Unpaid				Average		Interest
	Recorded		Principal		Related		Recorded		Income
	Investment		Balance		Allowance		Investment		Recognized
	(in thousands)
With no related allowance recorded:
Commercial and industrial	$	48	$	48	$	-	$	11	$	-
Commercial mortgages:
Multifamily		1,105		1,105		-		-		-
Other		1,773		1,773		-		777		11
Owner-occupied		174		174		-		-		-
Residential mortgages:
Closed end		1,043		1,043		-		167		-
Revolving home equity		382		382		-		516		24
With an allowance recorded:
Commercial mortgages:
Multifamily		-		-		-		1,390		-
Other		-		-		-		1,773		34
Residential mortgages - closed end		3,985		3,985		567		4,123		25
Total:
Commercial and industrial		48		48		-		11		-
Commercial mortgages:
Multifamily		1,105		1,105		-		1,390		-
Other		1,773		1,773		-		2,550		45
Owner-occupied		174		174		-		-		-
Residential mortgages:
Closed end		5,028		5,028		567		4,290		25
Revolving home equity		382		382		-		516		24
	$	8,510	$	8,510	$	567	$	8,757	$	94

11

Interest income recorded by the Corporation on loans considered to be impaired was recognized using the accrual method of accounting.  Any payments received on nonaccrual impaired loans are applied to the recorded investment in the loans.

Aging of Loans.  The following tables present the aging of the recorded investment in loans by class of loans.

	March 31, 2013
					Past Due				Total Past
					90 Days or				Due Loans &
	30-59 Days		60-89 Days		More and		Nonaccrual		Nonaccrual				Total
	Past Due		Past Due		Still Accruing		Loans		Loans		Current		Loans
	(in thousands)
Commercial and industrial	$	-	$	-	$	-	$	-	$	-	$	64,472	$	64,472
Commercial mortgages:
Multifamily		-		-		-		371		371		291,931		292,302
Other		-		-		-		-		-		136,791		136,791
Owner occupied		680		-		-		174		854		83,295		84,149
Residential mortgages:
Closed end		207		474		-		2,547		3,228		499,243