The First of Long Island Corporation Announces Increase in Net Income for the Nine Months Ended September 30, 2012

The First of Long Island Corporation Announces Increase in Net Income for the
Nine Months Ended September 30, 2012

GLEN HEAD, N.Y., Oct. 31, 2012 (GLOBE NEWSWIRE) -- The First of Long Island
Corporation (Nasdaq:FLIC), the parent company of The First National Bank of
Long Island, reported that net income and earnings per share for the nine
months ended September 30, 2012 were $15.3 million and $1.71, respectively,
representing increases over the same period last year of 4.2% and 3.0%,
respectively. Dividends per share were $.71 for the nine months ended
September 30, 2012, or 6% more than the $.67 per share declared in the same
period last year. Returns on average assets (ROA) and average equity (ROE) for
the nine months ended September 30, 2012 were 1.00% and 10.35%, respectively,
versus 1.09% and 11.56%, respectively, for the same period last year. An
increase in average unrealized gains on available-for-sale securities accounts
for a significant portion of the decline in ROE.

         Analysis of Earnings – Nine Months Ended September 30, 2012

The increase in net income for the nine months ended September 30, 2012 versus
the same period last year is primarily attributable to an increase in net
interest income of $1.5 million, or 3.4%, an increase in noninterest income,
excluding securities gains, of $200,000, or 4.2%, and a $152,000 decrease in
income tax expense. Partially offsetting the positive earnings impact of these
items was a net loss of $338,000 on a deleveraging transaction executed in the
second quarter of this year, an increase in noninterest expense, before debt
extinguishment costs, of $652,000, or 2.4%, and a $266,000 increase in the
provision for loan losses.

The increase in net interest income resulted from an increase in average
interest-earning assets of $243.7 million, or 14.0%, as partially offset by a
31 basis point decline in net interest margin. Net interest margin declined
from 3.67% for the first nine months of 2011 to 3.36% for the current
nine-month period as loans repriced and available cash flows were deployed in
a very low interest rate environment. The growth in average interest-earning
assets is principally comprised of increases in average loans outstanding of
$112.6 million, or 12.0%, nontaxable securities of $72.3 million, or 24.7%,
and taxable securities of $66.8 million, or 13.5%. Although most of the loan
growth occurred in residential and commercial mortgage loans, commercial and
industrial loans grew as well. Management believes that its continued success
in growing loans is attributable to a variety of factors including, among
others, targeted solicitation efforts, increased focus on multifamily lending,
new and expanded programs for first-lien home equity loans and jumbo
residential mortgages and the Bank's positive reputation in its marketplace.
Home equity loans are included in residential mortgages on the Corporation's
balance sheet. While the average balances of the Bank's nontaxable and taxable
securities portfolios grew significantly when comparing the first nine months
of this year to the same period last year, the size of the total securities
portfolios actually declined during the first nine months of 2012. The decline
occurred because of the deleveraging transaction and the deployment of
available funds, when possible, into loans rather than securities.
Management's continued efforts to make loans a larger portion of total assets
and the ongoing management of deposit and borrowing costs have helped to
mitigate the negative impact of the low interest rate environment and
contributed to maintaining a relatively stable net interest margin throughout
the current nine month period. In the first, second and third quarters of this
year, net interest margin was 3.37%, 3.36% and 3.35%, respectively.

The most significant sources of funding for the growth in the average balances
of loans and securities were growth in the average balances of savings, NOW
and money market deposits of $113.1 million, or 15.8%, noninterest-bearing
checking deposits of $45.3 million, or 11.0%, and borrowings of $49.6 million,
or 22.1%. The Bank's ability to continue to grow deposits is believed to be
attributable to, among other things, targeted solicitation efforts, expansion
of the Bank's branch distribution system, new and expanded lending
relationships, the Bank's positive reputation in its marketplace, volatility
in the equity markets and the acquisition of some local competitors by larger
financial institutions.

The $200,000 increase in noninterest income, excluding securities gains, for
the nine months ended September 30, 2012 is primarily attributable to
increases in mortgage assignment fees and commissions earned on the sale of
mutual funds and annuities and a decrease in losses on loans held-for-sale.
Despite an increase in income before income taxes, income tax expense
decreased for the current nine-month period primarily because of an increase
in tax-exempt income on municipal securities.The increase in noninterest
expense, before debt extinguishment costs, largely resulted from costs
incurred to promote home equity loans and increases in salaries, legal and
problem loan expenses.Salaries increased because of normal annual salary
adjustments and expansion of the Bank's branch distribution system.The
provision for loan losses increased for the current nine-month period
primarily because the period includes a larger amount of loan growth. 

         Analysis of Earnings – Three Months Ended September 30, 2012

For the third quarter of 2012, net income and earnings per share were $4.8
million and $.53, respectively, representing decreases versus the same quarter
last year of 9.4% and 11.7%, respectively.

The decrease in net income for the third quarter of 2012 versus the same
quarter last year is primarily attributable to a decrease in net interest
income of $181,000, or 1.2%, an increase in the provision for loan losses of
$403,000, and an increase in noninterest expense of $438,000, or 4.8%. The
negative earnings impact of these items was partially offset by a related
decrease in income tax expense of $439,000 and an increase in noninterest
income of $84,000, or 5.4%.

The decline in net interest income occurred because the negative impact of a
24 basis point decline in net interest margin for the quarter more than offset
the positive impact of quarterly growth in average interest-earnings assets of
6.6%.The provision for loan losses increased for the current quarter
primarily because the quarter includes a larger amount of loan growth and a
$413,000 chargeoff on one loan transferred to the held-for-sale category.The
increase in noninterest expense occurred for the same reasons discussed with
respect to the nine-month periods and because of increases in marketing
expense, data processing expense and recruiting fees.The increase in
noninterest income occurred for the same reasons discussed with respect to the
nine-month periods.

                                Asset Quality

The Bank's allowance for loan losses to gross loans (reserve coverage ratio)
was 1.64% at September 30, 2012 compared to 1.68% at the beginning of the
year.The $2.9 million provision for loan losses for the nine months ended
September 30, 2012 is mostly attributable to loan growth and $863,000 of
chargeoffs on two loans.The $2.6 million provision for loan losses for the
nine months ended September 30, 2011 was mostly attributable to loan growth
and a $1.3 million chargeoff on one loan.

The credit quality of the Bank's loan portfolio remains excellent, with
nonaccrual loans, excluding the loan held-for-sale, amounting to only $3.0
million, or .26% of total loans, at September 30, 2012.Additionally, loans
delinquent 30 to 89 days amounted to only $212,000, or .02% of total
loans.Troubled debt restructurings declined from $5.4 million at the
beginning of the year to $4.4 million at the end of the current period
primarily because one such loan was partially charged off and transferred to
the held-for-sale category.Of the $4.4 million in troubled debt
restructurings outstanding at September 30, 2012, $3.5 million are performing
in accordance with their modified terms and $.8 million are delinquent and
included in the aforementioned amounts for delinquent and nonaccrual
loans.The credit quality of the Bank's securities portfolio also remains
excellent.The Bank's mortgage securities are backed by mortgages underwritten
on conventional terms, and almost all of these securities are full faith and
credit obligations of the U.S. government.The remainder of the Bank's
securities portfolio consists principally of high quality, general obligation
municipal securities rated AA or better by major rating agencies.In selecting
municipal securities for purchase, the Bank uses credit agency ratings for
screening purposes only and then performs its own credit analysis.

                                   Capital

The Corporation's Tier 1 leverage, Tier 1 risk-based and total risk-based
capital ratios were 9.26%, 19.14% and 20.39%, respectively, at September 30,
2012.The strength of the Corporation's balance sheet from both a capital and
asset quality perspective positions the Corporation for continued growth in a
measured and disciplined fashion.

                                Balance Sheet

In the second quarter of this year, the Bank executed a deleveraging
transaction and also refinanced a portion of its overnight borrowings with
long-term debt.These transactions were undertaken to bolster the Bank's Tier
1 leverage capital ratio and potentially reduce the negative impact that an
eventual increase in interest rates could have on the Bank's earnings.

The deleveraging transaction involved using the proceeds from the sale of
investment securities with a market value of $97.1 million to extinguish
long-term debt with a redemption value of $68.8 million.The excess proceeds
on this transaction were initially used to repay short-term borrowings and, to
the extent possible, will eventually be used to fund loan growth. The net loss
of $338,000 on the deleveraging transaction resulted from the combination of
$3.8 million in debt extinguishment costs and $3.5 million in securities
gains.The refinancing strategy involved the repayment of $50 million of
overnight borrowings with approximately equal amounts of six and seven year
term borrowings.

On an ongoing basis, the deleveraging transaction should positively impact net
interest income in that the yield on the securities sold was 2.80%, the
interest cost on the extinguished debt was 3.24%, and the yield to be earned
on the reinvestment of the excess proceeds should not differ significantly
from that of the securities sold.The refinancing transaction negatively
impacts net interest income in that the cost of the overnight borrowings was
approximately 35 basis points and the cost of the long-term debt is
approximately 170 basis points. When taken together, the deleveraging and
refinancing transactions should not significantly impact the Bank's future
earnings.The deleveraging transaction positively impacted the Corporation's
Tier 1 leverage capital ratio which, despite third quarter balance sheet
growth, increased from 8.85% at the close of the second quarter to 9.26% at
the close of the current quarter.

                          Key Strategic Initiatives

Key strategic initiatives with respect to the Bank's earnings prospects will
continue to include loan and deposit growth through effective relationship
management, targeted solicitation efforts, new product offerings and continued
expansion of the Bank's branch distribution system.In 2011, the Bank opened
two full service branches on Long Island, one in Point Lookout and one in
Massapequa, and is planning to open another full service branch in
Lindenhurst, Long Island in the upcoming quarter.

                              Challenges We Face

Interest rates are currently very low and are expected to be low for an
extended period of time.In addition, there is significant price competition
for loans in the Bank's marketplace.The persistence of these factors could
result in a further decline in net interest margin.If that were to occur, and
management is unable to offset the impact by increasing the volume of
interest-earning assets, expense savings or other measures, the Bank's
profitability could decline.

Commercial and residential real estate values have been negatively impacted by
persistently high levels of unemployment and underemployment, a decline in
household disposable income, foreclosures and commercial vacancies.These
factors present threats to the maintenance of loan quality.

The banking industry is currently faced with an ever-increasing number of new
and complex regulatory requirements which are putting downward pressure on
revenues and upward pressure on required capital levels and the cost of doing
business.

                                                    
                                                    
BALANCE SHEET INFORMATION                                            
(Unaudited)                                                          
                                                    
                                       9/30/12       12/31/11
                                       (in thousands, except share
                                       and per share data)
                                                    
Total Assets                            $2,053,167  $ 2,022,407
                                                    
Loans:                                               
Commercial and industrial               53,861       42,572
Secured by real estate:                              
Commercial mortgages                    491,411      459,875
Residential mortgages                   497,373      385,374
Home equity lines                       81,367       90,616
Construction and land development       1,039        --
Other                                   3,714        4,596
                                       1,128,765    983,033
Net deferred loan origination costs     4,244        2,826
                                       1,133,009    985,859
Allowance for loan losses               (18,560)     (16,572)
                                       1,114,449    969,287
Investment Securities:                               
U.S. government agencies                --           5,113
State and municipals                    368,180      356,286
Pass-through mortgage securities        46,103       80,637
Collateralized mortgage obligations     418,805      514,005
                                       833,088      956,041
Deposits:                                            
Checking                                485,317      435,517
Savings, NOW and money market           847,134      796,009
Time, $100,000 and over                 179,524      174,691
Time, other                             93,307       96,651
                                       1,605,282    1,502,868
Borrowed Funds                          218,255      309,727
Stockholders' Equity                    205,261      189,347
                                                    
Share and Per Share Data:                            
Common Shares Outstanding at Period End 8,962,687     8,793,932
Book Value Per Share                    $22.90        $21.53
Tangible Book Value Per Share           $22.88        $21.51

                                                                
                                                                
CONSOLIDATED STATEMENTS OF INCOME
(Unaudited)
                                                                
                                Nine Months Ended       Three Months Ended
                                9/30/12     9/30/11     9/30/12    9/30/11
                                (dollars in thousands, except per share data)
Interest and dividend income:                                    
Loans                            $37,133   $35,740   $12,535  $12,133
Investment securities:                                           
Taxable                          11,102     12,284     3,045     4,432
Nontaxable                       9,594      8,653      3,140     3,022
                                57,829     56,677     18,720    19,587
Interest expense:                                                
Savings, NOW and money market    2,731      2,936      802       1,109
deposits
Time deposits                    4,384      4,501      1,463     1,539
Short-term borrowings            175        76         12        10
Long-term debt                   5,363      5,488      1,603     1,908
                                12,653     13,001     3,880     4,566
Net interest income              45,176     43,676     14,840    15,021
Provision for loan losses        2,903      2,637      1,157     754
Net interest income after        42,273     41,039     13,683    14,267
provision for loan losses
                                                                
Noninterest income:                                              
Investment Management Division   1,218      1,161      392       367
income
Service charges on deposit       2,318      2,437      744       818
accounts
Net gains on sales of            3,613      122        --        --
available-for-sale securities
Other                            1,393      1,131      517       384
                                8,542      4,851      1,653     1,569
Noninterest expense:                                             
Salaries                         12,113     11,826     4,179     4,028
Employee benefits                3,948      3,962      1,275     1,363
Occupancy and equipment          5,361      5,406      1,794     1,730
Debt extinguishment              3,812      --         --        --
Other                            6,473      6,049      2,230     1,919
                                31,707     27,243     9,478     9,040
                                                                
Income before income taxes       19,108     18,647     5,858     6,796
Income tax expense               3,766      3,918      1,071     1,510
Net Income                       $15,342   $14,729   $4,787   $5,286
                                                                
Share and Per Share Data:                                        
Weighted Average Common & Common 8,977,770   8,849,204   9,030,655  8,852,398
Equivalent Shares
Basic EPS                        $1.73       $1.68       $.54       $.60
Diluted EPS                      $1.71       $1.66       $.53       $.60
Cash Dividends Declared          $.71        $.67        $.25       $.23
                                                                
FINANCIAL RATIOS                                                 
                                                                
ROA                              1.00%       1.09%       0.94%      1.10%
ROE                              10.35%      11.56%      9.44%      11.75%
Net Interest Margin              3.36%       3.67%       3.35%      3.59%
Dividend Payout Ratio            41.52%      40.36%      47.17%     38.33%

                                                                 
                                                                 
ASSET QUALITY INFORMATION
(Unaudited)
                                                                 
                                                     9/30/12      12/31/11
                                                     (dollars in thousands)
                                                                 
Loan held-for-sale                                    $550       $--
                                                                 
Delinquent and nonaccrual loans*:                                 
Past due 30 through 89 days                           $212       $740
Past due 90 days or more and still accruing           --          --
Nonaccrual                                            2,965       3,211
                                                     $3,177     $3,951
                                                                 
Troubled debt restructurings*:                                    
Performing in accordance with their modified terms    $3,535     $3,549
Included in delinquent and nonaccrual loans           830         1,846
                                                     $4,365     $5,395
                                                                 
Other real estate owned                               $--        $--
                                                                 
Allowance for loan losses                             $18,560    $16,572
Allowance for loan losses as a percentage of total    1.64%        1.68%
loans*
Allowance for loan losses as a multiple of nonaccrual 6.3         5.2
loans*
                                                                 
* Excludes loan held-for-sale that is nonaccruing and was modified in a
trouble debt restructuring

                                                                 
                                                                 
AVERAGE BALANCE SHEET, INTEREST RATES AND INTEREST DIFFERENTIAL
(Unaudited)
                                                                 
                  Nine Months Ended September 30,
                  2012                          2011
                  Average     Interest/ Average Average     Interest/ Average
                  Balance     Dividends Rate    Balance     Dividends Rate
Assets             (dollars in thousands)
Interest-bearing   $10,002   $15     .20%    $17,967   $31     .23%
bank balances
Investment                                                        
Securities:
Taxable            562,527    11,087   2.63    495,744    12,253   3.30
Nontaxable (1)     364,718    14,536   5.31    292,410    13,111   5.98
Loans ^ (1) (2)    1,052,934  37,155   4.71    940,346    35,762   5.07
Total
interest-earning   1,990,181  62,793   4.21    1,746,467  61,157   4.67
assets
Allowance for loan (17,792)                   (14,764)            
losses
Net
interest-earning   1,972,389                  1,731,703           
assets
Cash and due from  27,107                     26,177              
banks
Premises and       23,158                     21,315              
equipment, net
Other assets       30,879                     30,379              
                  $                          $1,809,574          
                   2,053,533
                                                                 
Liabilities and
Stockholders'                                                     
Equity
Savings, NOW &
money market       $831,363  2,731    .44     $718,230  2,936    .55
deposits
Time deposits      269,994    4,384    2.17    272,888    4,501    2.21
Total
interest-bearing   1,101,357  7,115    .86     991,118    7,437    1.00
deposits
Short-term         66,246     175      .35     27,699     76       .37
borrowings
Long-term debt     207,929    5,363    3.45    196,916    5,488    3.73
Total
interest-bearing   1,375,532  12,653   1.23    1,215,733  13,001   1.43
liabilities
Checking deposits  458,840                    413,525             
Other liabilities  21,246                     10,015              
                  1,855,618                  1,639,273           
Stockholders'      197,915                    170,301             
equity
                  $                          $1,809,574          
                   2,053,533
                                                                 
Net interest                  $50,140                    $48,156  
income ^ (1)
Net interest                           2.98%                       3.24%
spread ^(1)
Net interest                           3.36%                       3.67%
margin ^(1)
                                                                 
                                                                 
^(1) Tax-equivalent basis.Interest income on a tax-equivalent basis includes
the additional amount of interest income that would have been earned if the
Corporation's investment in tax-exempt loans and investment securities had
been made in loans and investment securities subject to Federal income taxes
yielding the same after-tax income.The tax-equivalent amount of $1.00 of
nontaxable income was $1.52 in each period presented based on a Federal income
tax rate of 34%.
^(2) For the purpose of these computations, nonaccruing loans are included in
the daily average loan amounts outstanding.

                         Forward Looking Information

This earnings release contains various "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 Exchange 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.

For more detailed financial information please see the Corporation's quarterly
report on Form 10-Q for the period ended September 30, 2012.The Form 10-Q
will be available through the Bank's website at www.fnbli.com on or about
November 9, 2012, after it is electronically filed with the Securities and
Exchange Commission ("SEC").Our SEC filings are also available on the SEC's
website at www.sec.gov.You may also read and copy any document we file with
the SEC at the SEC's public reference room at 100 F Street, N.E., Room 1580,
Washington, DC 20549.You should call 1-800-SEC-0330 for more information on
the public reference room.

CONTACT: For More Information Contact:
         Mark D. Curtis, Senior Vice President and Treasurer
         (516) 671-4900, Ext. 556
 
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