EX-99.1 2 longisland8kjan-05ex99.txt 1 [LONG ISLAND FINANCIAL CORP. LETTERHEAD] REPORTS ANNUAL RESULTS ANNOUNCES DATE OF ANNUAL MEETING ISLANDIA, N.Y. (Business Wire) - January 18, 2005 - Long Island Financial Corp. (the "Company") (NASDAQ/NMS: LICB), the holding company for Long Island Commercial Bank (the "Bank"), today reported net income of $1.8 million or $1.14 per diluted share, for the twelve months ended December 31, 2004, compared to net income of $3.3 million, or $2.16 per diluted share for the twelve months ended December 31, 2003. The decrease in net income for the twelve months ended December 31, 2004 is attributable to an increase in the Company's provision for loan losses and operating expenses relating to its automobile loan portfolio. Notwithstanding the provision for loan losses and automobile loan expense recognized in 2004, the Company achieved gains in its core operating performance. Continued growth in the securities and loan portfolios resulted in an increase in net interest income of $2.5 million, or 16.7%, from $14.9 million for the twelve months ended December 31, 2003, to $17.4 million for the twelve months ended December 31, 2004. Other operating income, excluding net gains on sales and calls of securities, increased $551,000, or 14.6%, from $3.8 million for the twelve months ended December 31, 2003 to $4.3 million for the twelve months ended December 31, 2004. Other operating expenses, excluding automobile loan expense, increased a modest $230,000, or 1.6%, for the twelve months ended December 31, 2004, compared to the twelve months ended December 31, 2003, as the Company implemented certain cost controls and restructured its branch expansion plan. Total assets amounted to $554.8 million at December 31, 2004, an increase of $30.1 million, or 5.7%, from the $524.7 million held at December 31, 2003. At December 31, 2004, loans, net of unearned income and deferred fees, had increased by $17.3 million, or 7.7%, from the December 31, 2003 level. Year over year, the average balance of demand deposits increased $8.4 million, or 9.2%, from $90.8 million for the twelve months ended December 31, 2003, to $99.2 million for the twelve months ended December 31, 2004. Similarly, average savings deposits increased by $14.9 million, or 16.1%, from $92.6 million at December 31, 2003, to $107.5 million at December 31, 2004. ALLOWANCE FOR LOAN LOSSES ------------------------- As discussed in prior quarter press releases, the Company continues to monitor the performance of its automobile loan portfolio. Based upon the Company's continued assessment of that portfolio and a review of recent collateral disposition activity, the Company made a provision for loan losses of $750,000 for the quarter ended December 31, 2004. The total provision for loan losses relating to the automobile portfolio amounted to $6.3 million for the twelve months ended December 31, 2004. The Company incurred operating expenses relating to the automobile loan portfolio of $289,000 for the quarter ended December 31, 2004, and $1.4 million for the twelve months ended December 31, 2004. Those expenses include expenses for legal services, portfolio servicing and administration, collateral perfection, verification and disposition, and audit and accounting services. While the Company expects to incur future operating expenses related to the automobile loan portfolio, it expects those expenses to decrease as the portfolio matures. Operating costs for the automobile loan portfolio are expensed when incurred and recorded in "automobile loan expense" in the consolidated statement of earnings. 2 At December 31, 2004, the automobile loan portfolio consisted of approximately 1,110 loans with balances aggregating $22.8 million. Automobile loans represented 9.4% of the Bank's loan portfolio, net of unearned income and deferred fees. Approximately 85.1% of the automobile loan balances mature by year end December 2006. Delinquencies at December 31, 2004, consisted of eight loans, 30-89 days past due, representing $198,712, or .9 % of the portfolio, and three loans, aggregating $89,313, or .4% of the portfolio, greater than 90 days past due. Those three loans are classified non-accrual at December 31, 2004. Since the portfolio was underwritten to lessees of high credit quality, those delinquency statistics remain favorable and are in line with the Company's expectations. SUMMARY ------- Commenting on the performance of the Company for 2004, Douglas C. Manditch, President and Chief Executive Officer, stated, "Obviously, 2004 has been a disappointment regarding our earnings performance; however, we are gratified that we were able to gain control of the automobile loan portfolio, as quickly as we did after learning about the situation. As we continue to manage out the automobile loan portfolio, we are constantly reviewing the used car marketplace in order to obtain the highest level of collateral redemption possible. As you may know, this market has softened in the last few months; therefore, we were required to take the additional provision in the fourth quarter." "Although we have temporarily suspended our plans for branch expansion, we are confident that the program will be reinstituted in either late 2005, or early 2006. Our business continues to grow, as demonstrated, within our core base with the expansion of products and services. While we recognize the challenge of managing the automobile loan portfolio and the flattening yield curve, we are very optimistic about 2005." The Company announced that the Annual Meeting of Stockholders would be held on Wednesday, April 20, 2005, at the Stonebridge Country Club, 2000 Raynors Way, Smithtown, N.Y. 11787 at 3:30 PM. On November 17, 2004, the Board of Directors of Long Island Financial Corp. declared a dividend of $.12 per common share. The dividend was paid on January 3, 2005, to stockholders of record on December 17, 2004. Long Island Commercial Bank, the wholly-owned subsidiary of Long Island Financial Corp., is a New York state chartered commercial bank, which began operations in January of 1990, and provides commercial and consumer banking services through twelve branch offices, maintaining its headquarters in Islandia. The Bank is an independent local bank emphasizing personal service and responsiveness to the needs of its customers. BRANCH OFFICES -------------- Suffolk County, N.Y. Nassau County, N.Y. Kings County, N.Y. -------------------- --------------------- ------------------ Islandia Babylon Jericho Westbury Bay Ridge-Brooklyn Central Islip Deer Park Melville Ronkonkoma Shirley Smithtown Hauppauge THIS RELEASE MAY CONTAIN CERTAIN FORWARD-LOOKING STATEMENTS, WHICH ARE BASED ON MANAGEMENT'S CURRENT EXPECTATIONS REGARDING ECONOMIC, LEGISLATIVE, AND REGULATORY ISSUES THAT MAY IMPACT THE COMPANY'S EARNINGS IN FUTURE PERIODS. FACTORS THAT COULD CAUSE FUTURE RESULTS TO VARY MATERIALLY FROM CURRENT MANAGEMENT EXPECTATIONS INCLUDE, BUT ARE NOT LIMITED TO, GENERAL ECONOMIC CONDITIONS, CHANGES IN INTEREST RATES, DEPOSIT FLOWS, REAL ESTATE VALUES, AND COMPETITION; CHANGES IN ACCOUNTING PRINCIPLES, POLICIES, OR GUIDELINES; CHANGES IN LEGISLATION OR REGULATION; AND OTHER ECONOMIC, COMPETITIVE, GOVERNMENTAL, REGULATORY AND TECHNOLOGICAL FACTORS AFFECTING THE COMPANY'S OPERATIONS, PRICING, PRODUCTS, AND SERVICES. 3

-------------------------- (1) Non-performing loans consist of all non-accrual loans and all other loans 90 days or more past due and still accruing interest. It is the Company's policy to generally cease accruing interest on all loans 90 days or more past due. (2) Loans include loans, net of unearned income and deferred fees. (3) Excludes net unrealized depreciation/appreciation in available-for-sale securities, net of tax. CONTACT: Douglas C. Manditch, President & CEO LONG ISLAND FINANCIAL CORP. 1601 Veterans Memorial Highway, Suite 120 Islandia, New York 11749 Voice: (631) 348-0888 Fax: (631) 348-0830 WWW.LICB.COM ------------

LONG ISLAND FINANCIAL CORP 8-K