EX-99.1 2 longislandexb99july19.txt 1 [LONG ISLAND FINANCIAL CORP. LETTERHEAD] REPORTS SECOND QUARTER RESULTS ISLANDIA, N.Y. (Business Wire) - July 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 $807,000, or $.51 per diluted share, for the three months ended June 30, 2005, compared to a loss of $897,000, or $.56 per diluted share for the three months ended June 30, 2004. For the six months ended June 30, 2005, the Company reported net income $1.7 million, or $1.05 per diluted share, compared to net income of $24,000, or $.02 per diluted share, for the six months ended June 30, 2004. The financial results for the three and six months ended June 30, 2004, were substantially impacted by provisions both for loan losses and automobile loan expenses recognized with regard to the Company's automobile loan portfolio. Total assets amounted to $539.7 million at June 30, 2005, a decrease of $5.8 million, or 1.1%, from the $545.5 million held at June 30, 2004. At June 30, 2005, loans, excluding automobile loans, net of unearned income and deferred fees, had increased by $30.7 million, or 15.0%, from the June 30, 2004 level. Year-over-year, the average balance of demand deposits increased $10.0 million, or 10.5%, from $96.1 million for the six months ended June 30, 2004, to $106.1 million for the six months ended June 30, 2005. The average balance of savings deposits increased by $18.1 million, or 17.6%, from $103.2 million at June 30, 2004, to $121.3 million at June 30, 2005. AUTOMOBILE LOANS ---------------- As discussed in prior quarter press releases, the Company continues to monitor the performance of its automobile loan portfolio. At June 30, 2005, the automobile loan portfolio consisted of 664 loans with balances aggregating $13.1 million. Automobile loans represented 5.3% of the Bank's loan portfolio, net of unearned income and deferred fees. Delinquencies at June 30, 2005, were $227,102, or 1.7% of the portfolio. The Company incurred operating expenses relating to the automobile loan portfolio of $131,000 for the quarter ended June 30, 2005, compared to $798,000 for the quarter ended June 30, 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 continue to incur 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 statements of earnings. SUMMARY ------- "We are particularly pleased with our financial results to date," stated Douglas C. Manditch, President and Chief Executive Officer, "Our ability to generate core business in the current environment is being demonstrated this year with continued growth in our loan portfolio despite rapid run-off in the automobile loan portfolio. Core deposits such as demand and savings scored double-digit gains year-over-year in period-end balances, and more importantly, average balances." Continuing, he added: "We are cautiously optimistic moving into the second half of 2005. 2 While we are encouraged by the disposition of automobiles resulting in less than projected losses during May and June, we still face an extremely competitive environment with the automobile loan portfolio. We also expect that continued growth in our loan portfolio will necessitate modest quarterly provisions, similar to the $50,000 provision made for the three months ended June 30, 2005." On May 25, 2005, the Board of Directors of Long Island Financial Corp. declared a dividend of $.12 per common share. The dividend was paid on July 1, 2005, to stockholders of record on June 17, 2005. 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