Business Description
The First of Long Island Corporation, a one-bank holding company, was incorporated
on February 7, 1984, for the purpose of providing financial services through
its wholly-owned subsidiary, The First National Bank of Long Island (“Bank”).
The Bank was organized in 1927 as a national banking association under the laws
of the United States of America. The Bank has two wholly owned subsidiaries:
The First of Long Island Agency, Inc. (“Agency”), 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. (“REIT”), a real estate investment
trust.
All of the financial operations of the Corporation are aggregated in one reportable
operating segment. All revenues are attributed to and all long-lived assets
are located in the United States.
The Bank’s revenues are derived principally from interest on loans and
investment securities, service charges and fees on deposit accounts and income
from investment management and trust services.
The Bank’s loan portfolio is primarily comprised of loans to borrowers
on Long Island and in the boroughs of New York City, and its real estate loans
are principally secured by properties located in those areas. The Bank’s
investment securities portfolio is primarily comprised of direct obligations
of the U.S. government and its agencies and highly rated obligations of states
and political subdivisions. The Bank has an Investment Management Division that
provides investment management, pension trust, personal trust, estate and custody
services.
In addition to its loan and deposit products, the Bank offers other services
to its customers including the following:
Account Reconciliation Services
ACH Origination
ATM Banking and Deposit Automation
Bank by Mail
Bill Payment
Cash Management Services
Collection Services
Controlled Disbursement Accounts
Drive-Through Banking
Foreign Currency Sales and Purchases
Healthcare Remittance Automation
Instant Issue Debit Cards
Lock Box Services
Merchant Credit Card Services
Mobile Banking
Mobile Capture
Mutual Funds, Annuities and Life Insurance
Night Depository Services
Online Banking
Payroll Services
Personal Money Orders
Remote Deposit
Safe Deposit Boxes
Securities Transactions
Signature Guarantee Services
Telephone Banking
Travelers Checks
Investment Management and Trust Services
Wire Transfers - Domestic and International
Withholding Tax Depository Services
The Bank’s lending is subject to written underwriting standards and loan
origination procedures, as approved by the Board Loan Committee and contained
in the Bank’s loan policies. The loan policies allow for exceptions and
set forth specific exception approval requirements. Decisions on loan applications
are based on, among other things, the borrower’s credit history, the financial
strength of the borrower, estimates of the borrower’s ability to repay
the loan and the value of the collateral, if any. All real estate appraisals
must meet the requirements of the Financial Institutions Reform, Recovery and
Enforcement Act of 1989, the Dodd-Frank Wall Street Reform and Consumer Protection
Act of 2010 (“Dodd-Frank Act”), banking agency guidance and, for
those loans in excess of $250,000, be reviewed by the Bank’s independent
appraisal review function.
The Bank conducts its lending activities out of its main office in Glen Head,
New York and its Suffolk County regional office in Hauppauge, New York. The
Bank’s loan portfolio is primarily comprised of loans to small and medium-sized
privately owned businesses, professionals and consumers on Long Island and in
the boroughs of New York City. The Bank offers a full range of lending services
including commercial and residential mortgage loans, home equity lines, commercial
and industrial loans, small business credit scored loans, construction and land
development loans, consumer loans and commercial and standby letters of credit.
The Bank makes both fixed and variable rate loans. Variable rate loans are primarily
tied to and reprice with changes in the prime interest rate of the Bank, the
prime interest rate as published in The Wall Street Journal, U.S. Treasury rates
or the Federal Home Loan Bank of New York advance rates.
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