The First of Long Island Corporation Announces Increase in Earnings for the Year and Quarter Ended December 31, 2012

The First of Long Island Corporation Announces Increase in Earnings for the
Year and Quarter Ended December 31, 2012

GLEN HEAD, N.Y., Jan. 30, 2013 (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 2012 were
$20.4 million and $2.27, respectively, representing increases over 2011 net
income and earnings per share of 4.8% and 3.2%, respectively. Dividends per
share were $.96 for 2012, or 6.7% more than the $.90 per share declared in
2011. Returns on average assets (ROA) and average equity (ROE) for 2012 were
.99% and 10.19%, respectively, versus 1.05% and 11.15%, respectively, for
2011. An increase in average unrealized gains on available-for-sale securities
accounts for a significant portion of the decline in ROE.

For the fourth quarter of 2012, net income and earnings per share were $5.1
million and $.56, respectively, representing increases over the same quarter
last year of 6.8% and 5.7%, respectively.

                     Analysis of Full Year 2012 Earnings

The increase in net income for 2012 is primarily attributable to an increase
in net interest income of $1.4 million, or 2.3%, a decrease in the provision
for loan losses of $433,000, and an increase in noninterest income, excluding
securities gains, of $287,000, or 4.6%. 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 $731,000, or 2.0%,
and an increase in income tax expense of $73,000. Despite a $1.0 million
increase in income before income taxes, income tax expense only increased by
$73,000 largely because of a $869,000 increase in tax-exempt income on
municipal securities. 

The increase in net interest income resulted from an increase in average
interest-earning assets of $204.8 million, or 11.4%, as partially offset by a
29 basis point decline in net interest margin.Net interest margin declined
from 3.63% in 2011 to 3.34% in 2012 as loans repriced and 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 $125.7 million, or 13.3%, nontaxable securities of $61.5
million, or 20.2%, and taxable securities of $24.1 million, or 4.7%. Although
most of the loan growth occurred in residential and commercial mortgage loans,
commercial and industrial loans grew as well. Management's 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 balance of the Bank's taxable
securities portfolio grew moderately when comparing 2012 to 2011, the size of
the portfolio declined by $106.9 million, or 17.8%, when comparing year-end
2012 to 2011.The decline occurred because of the deleveraging transaction and
the deployment of funds, when possible, into loans rather than securities.
Management's continued efforts to make loans a larger portion of total assets
and reduce deposit and borrowing costs have helped to mitigate the negative
impact of the low interest rate environment and virtually stabilize net
interest margin throughout 2012. Net interest margin was 3.37%, 3.36%, 3.35%
and 3.30% in the first, second, third and fourth quarters of this year,
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 $93.2 million, or 12.5%, noninterest-bearing
checking deposits of $48.3 million, or 11.5%, and borrowings of $31.0 million,
or 13.7%.The Bank's ability to continue to grow deposits is attributable to,
among other things, expansion of the Bank's branch distribution system,
targeted solicitation of local commercial businesses and municipalities, 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 decrease in the provision for loan losses for 2012 is due to a reduction
in specific reserves on loans individually deemed to be impaired and
stabilization of historical loss rates.The impact of these items in reducing
the provision was partially offset by an increased level of loan growth.The
$287,000 increase in noninterest income, excluding securities gains, for 2012
is primarily attributable to an increase in Investment Management Division
income, an increase in mortgage assignment and other loan related fees, and a
decrease in losses on loans held-for-sale.The positive impact on earnings of
these items was partially offset by a decrease in return check charges
incurred by the Bank's customers. The increase in noninterest expense, before
debt extinguishment costs, largely resulted from increases in salaries,
depreciation and certain loan related costs, as partially offset by a
reduction in amounts expensed for the settlement of pending
litigation.Salaries increased primarily because of normal annual salary
adjustments and additions to both branch and back-office staff.Depreciation
expense increased due to new branch facilities, investments in technology, and
the expansion and restoration of existing branch and back-office facilities.
Certain loan related costs increased due to an increased volume of lending.

                   Analysis ofFourth Quarter 2012 Earnings

The increase in net income for the fourth quarter of 2012 versus the same
quarter last year is primarily attributable to a decrease in the provision for
loan losses of $699,000 and an increase in noninterest income of $71,000, or
4.5%, as partially offset by a decrease in net interest income of $143,000, or
.9%, and an increase in noninterest expense of $79,000, or .8%.The net
positive earnings impact of these items was partially offset by a related
increase in income tax expense of $225,000. 

The decline in net interest income occurred because the negative impact of a
20 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
4.7%.The provision for loan losses decreased for the current quarter largely
because of a reduction in specific reserves on loans individually deemed to be
impaired and a moderation in commercial mortgage growth trends.The impact of
these items in reducing the provision was partially offset by an increased
level of loan growth.

                                Asset Quality

The Bank's allowance for loan losses to gross loans (reserve coverage ratio)
was 1.62% at December 31, 2012 compared to 1.68% at the beginning of the
year.The reduction in the reserve coverage ratio is largely due to a
reduction in specific reserves on loans individually deemed to be
impaired.The $3.6 million provision for loan losses for 2012 is mostly
attributable to loan growth and $1.3 million of chargeoffs on three loans.The
$4.1 million provision for loan losses for 2011 was mostly attributable to
loan growth and $1.5 million of chargeoffs on two loans.

The credit quality of the Bank's loan portfolio remains excellent, with
nonaccrual loans amounting to $4.1 million, or .36% of total loans, at
December 31, 2012. Additionally, loans past due 30 to 89 days amounted to
only $884,000, or .08% 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 year primarily due to the sale of one such loan.Of the $4.4 million in
troubled debt restructurings outstanding at December 31, 2012, $1.8 million
are performing in accordance with their modified terms and $2.6 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 9.29%, 19.01% and 20.26%, respectively, at December 31,
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.Absent
the deleveraging transaction, total asset growth from year-end 2011 to
year-end 2012 would have been slightly more than double the reported growth of
4.2%.

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
eventually used to fund a combination of loan originations and securities
purchases. 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 earned on the
reinvestment of the excess proceeds is not significantly different than 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 contributed to an increase in the Corporation's Tier 1 leverage
capital ratio from 8.85% at the end of the second quarter to 9.29% at year
end. 

                          Key Strategic Initiatives

Key strategic initiatives 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.In late 2012, the Bank opened a full
service branch in Lindenhurst, Long Island and in 2013 is planning to open two
full service branches, one in Massapequa Park, Long Island and another in
Sayville, Long Island.

                              Challenges We Face

Interest rates are currently very low and are expected to remain 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 decline in net interest margin from its current level.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.Although
real estate values have rebounded some in recent months, these factors still
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)
                                                    
                                       12/31/12      12/31/11
                                       (in thousands, except share
                                       and per share data)
                                                    
Total Assets                            $2,108,290  $2,022,407
Loans:                                               
Commercial and industrial               54,339       42,572
Secured by real estate:                              
Commercial mortgages                   503,719      459,875
Residential mortgages                  499,435      385,374
Home equity lines                      81,124       90,616
Consumer                              4,335        4,596
                                       1,142,952    983,033
Net deferred loan origination costs    4,432        2,826
                                       1,147,384    985,859
Allowance for loan losses               (18,624)     (16,572)
                                       1,128,760    969,287
Investment Securities:                               
U.S. government agencies                --           5,113
State and municipals                    368,768      356,286
Pass-through mortgage securities        88,738       80,637
Collateralized mortgage obligations     404,095      514,005
                                       861,601      956,041
Deposits:                                            
Checking                                528,940      435,517
Savings, NOW and money market           844,583      796,009
Time, $100,000 and over                 168,437      174,691
Time, other                             91,116       96,651
                                       1,633,076    1,502,868
Borrowed Funds                          248,634      309,727
Stockholders' Equity                    205,370      189,347
                                                    
Share and Per Share Data:                            
Common Shares Outstanding at Period End 9,001,686     8,793,932
Book Value Per Share                    $22.81        $21.53
Tangible Book Value Per Share           $22.79        $21.51


CONSOLIDATED STATEMENTS OF INCOME
(Unaudited)
                                                                
                                Twelve Months Ended     Three Months Ended
                                12/31/12    12/31/11    12/31/12   12/31/11
                                (dollars in thousands, except per share data)
Interest and dividend income:                                    
Loans                           $49,651   $47,777   $12,518  $12,037
Investment securities:                                          
Taxable                         13,836     16,662     2,734     4,378
Nontaxable                     12,742     11,873     3,148     3,220
                                76,229     76,312     18,400    19,635
Interest expense:                                                
Savings, NOW and money market   3,393      4,035      662       1,099
deposits
Time deposits                   5,803      6,052      1,419     1,551
Short-term borrowings           195        93         20        17
Long-term debt                  6,736      7,387      1,373     1,899
                                16,127     17,567     3,474     4,566
Net interest income            60,102     58,745     14,926    15,069
Provision for loan losses       3,628      4,061      725       1,424
Net interest income after        56,474     54,684     14,201    13,645
provision for loan losses
                                                                
Noninterest income:                                              
Investment Management Division  1,624      1,539      406       378
income
Service charges on deposit      3,053      3,186      735       749
accounts
Net gains on sales of           3,613      138        --        16
available-for-sale securities
Other                           1,898      1,563      505       432
                                10,188     6,426      1,646     1,575
Noninterest expense:                                             
Salaries                       16,360     15,785     4,247     3,959
Employee benefits              5,035      5,066      1,087     1,104
Occupancy and equipment         7,265      7,148      1,904     1,742
expense
Debt extinguishment             3,812      --         --        --
Other operating expenses       8,780      8,710      2,307     2,661
                                41,252     36,709     9,545     9,466
                                                                
Income before income taxes      25,410     24,401     6,302     5,754
Income tax expense               5,017      4,944      1,251     1,026
Net Income                      $20,393   $19,457   $5,051   $4,728
                                                                
Share and Per Share Data:                                        
Weighted Average Common & Common 9,000,767   8,854,964   9,069,257  8,872,056
Equivalent Shares
Basic EPS                        $2.29       $2.22       $.56       $.54
Diluted EPS                      $2.27       $2.20       $.56       $.53
Cash Dividends Declared          $.96        $.90        $.25       $.23
                                                                
FINANCIAL RATIOS
                                                                
ROA                              0.99%       1.05%       0.97%      0.95%
ROE                              10.19%      11.15%      9.72%      10.04%
Net Interest Margin              3.34%       3.63%       3.30%      3.50%
Dividend Payout Ratio            42.29%      40.91%      44.64%     43.40%


ASSET QUALITY INFORMATION
(Unauditied)
                                                                  
                                                       12/31/12    12/31/11
                                                       (dollars in thousands)
                                                                  
Delinquent and nonaccrual loans:                                   
Past due 30 through 89 days                           $884      $740
Past due 90 days or more and still accruing           --         --
Nonaccrual                                             4,098      3,211
                                                       $4,982    $3,951
Troubled debt restructurings:                                      
Not included in delinquent and nonaccrual loans        $1,747    $3,549
Included in delinquent and nonaccrual loans            2,636      1,846
                                                       $4,383    $5,395
                                                                  
Other real estate owned                                $--       $--
                                                                  
Allowance for loan losses                               $18,624   $16,572
Allowance for loan losses as a percentage of total      1.62%       1.68%
loans
Allowance for loan losses as a multiple of nonaccrual   4.5        5.2
loans


AVERAGE BALANCE SHEET, INTEREST RATES AND INTEREST DIFFERENTIAL
(Unaudited)
                                                                 
                  Twelve Months Ended December 31,
                  2012                          2011
                  Average     Interest/ Average Average     Interest/ Average
                  Balance     Dividends Rate    Balance     Dividends Rate
Assets             (dollars in thousands)
Interest-bearing   $12,809   $31     .24%    $19,398   $47     .24%
bank balances
Investment                                                        
Securities:
Taxable           541,970    13,805   2.55    517,856    16,615   3.21
Nontaxable ^ (1)  366,146    19,306   5.27    304,647    17,989   5.90
Loans ^ (1) (2)    1,073,046  49,679   4.63    947,309    47,806   5.05
Total
interest-earning   1,993,971  82,821   4.15    1,789,210  82,457   4.61
assets
Allowance for loan (18,098)                   (15,013)            
losses
Net
interest-earning   1,975,873                  1,774,197           
assets
Cash and due from  27,476                     26,346              
banks
Premises and       23,334                     21,410              
equipment, net
Other assets       30,925                     30,658              
                  $2,057,608                 $1,852,611          
                                                                 
Liabilities and Stockholders'                                      
Equity
Savings, NOW &
money market       $839,143  3,393    .40     $745,916  4,035    .54
deposits
Time deposits      269,492    5,803    2.15    272,458    6,052    2.22
Total
interest-bearing   1,108,635  9,196    .83     1,018,374  10,087   .99
deposits
Short-term         57,351     195      .34     26,798     93       .35
borrowings
Long-term debt     200,041    6,736    3.37    199,584    7,387    3.70
Total
interest-bearing   1,366,027  16,127   1.18    1,244,756  17,567   1.41
liabilities
Checking deposits  469,598                    421,273             
Other liabilities  21,846                     12,124              
                  1,857,471                  1,678,153           
Stockholders'      200,137                    174,458             
equity
                  $2,057,608                 $1,852,611          
                                                                 
Net interest                  $66,694                   $64,890 
income ^ (1)
Net interest                           2.97%                       3.20%
spread ^(1)
Net interest                           3.34%                       3.63%
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 annual
report on Form 10-K for the year ended December 31, 2012.The Form 10-K will
be available through the Bank's website at www.fnbli.com on or about March 18,
2013, 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: Mark D. Curtis, Senior Vice President and Treasurer
         (516) 671-4900, Ext. 556