The first discussion of the management of Al Jazeera Taweelah Corporation and the analysis of the financial situation and results of operations (Form 10-S)

The first discussion of the management of Al Jazeera Taweelah Corporation and the analysis of the financial situation and results of operations (Form 10-S)

The next is administration's dialogue and evaluation of The First of Lengthy
Island Company's monetary situation and working outcomes throughout the
durations included within the accompanying consolidated monetary statements and
must be learn at the side of such monetary statements. The Company's
monetary situation and working outcomes principally replicate these of its
wholly-owned subsidiary, The First Nationwide Financial institution of Lengthy Island, and
subsidiaries wholly-owned by the Financial institution, both straight or not directly, FNY
Service Corp., The First of Lengthy Island REIT, Inc. and The First of Lengthy Island
Company, Inc. The consolidated entity is known as the Company and the
Financial institution and its subsidiaries are collectively known as the Financial institution. The Financial institution's
main service space is Nassau and Suffolk Counties on Lengthy Island and the NYC
boroughs of Queens, Brooklyn and Manhattan.

Abstract

Internet revenue and diluted earnings per share for the primary 9 months of 2022 have been
$37.0 million and $1.61, respectively, in comparison with $34.1 million and $1.43,
respectively, for a similar interval final yr. Dividends per share elevated 5.2%,
from $.58 for the primary 9 months of 2021 to $.61 for the present interval.
Returns on common property ("ROA") and common fairness ("ROE") for the primary 9
months of 2022 have been 1.17% and 12.57%, respectively, in comparison with 1.09% and
10.96%, respectively, for a similar interval final yr. E book worth per share was
$15.87 on the shut of the present interval, in comparison with $17.81 at year-end 2021.

Evaluation of Earnings - 9 Month Durations. Internet revenue for the primary 9 months
of 2022 was $37.0 million, a rise of $3.0 million, or 8.7%, versus the identical
interval final yr. The rise is primarily resulting from progress in web curiosity revenue
of $8.5 million, or 10.7%, and noninterest revenue of $887,000, or 10.3%,
excluding 2021 securities positive factors. These things have been partially offset by will increase
within the provision for credit score losses of $5.3 million, noninterest expense of
$193,000 and revenue tax expense of $353,000.

The rise in web curiosity revenue displays progress in curiosity revenue on loans
resulting from a rise in common loans excellent at September 30, 2022 and a
decline in curiosity expense associated to the maturity and termination of the
Financial institution's rate of interest swap in April 2022. Additionally contributing to the rise was a
favorable shift within the mixture of funding as a rise in common checking
deposits and a decline in common interest-bearing liabilities resulted in
common checking deposits comprising a bigger portion of complete funding. Whereas
the typical price of interest-bearing liabilities declined when evaluating the
nine-month durations, present funding prices are growing resulting from increased market
rates of interest and competitors.

In the course of the third quarter of 2022, we originated $130 million of loans with a
weighted common charge of roughly 4.51% which incorporates $79 million of
business mortgages at a weighted common charge of 4.62%. The mortgage mortgage
pipeline was $68 million with a weighted common charge of 5.51% at September 30,
2022. The quantity of originations throughout the quarter and the pipeline at
quarter-end replicate decrease demand for loans within the market resulting from increased
rates of interest.

Internet curiosity margin for the primary 9 months of 2022 was 2.95% versus 2.70% for
the 2021 interval which incorporates 9 foundation factors ("bps") and 14 bps, respectively,
associated to prepayment charges, late charges and PPP revenue. Vital will increase in
rates of interest resulting from inflation are anticipated to adversely have an effect on web curiosity
revenue and margin that are largely depending on modifications within the yield curve and
aggressive and financial circumstances.

The availability for credit score losses elevated $5.3 million when evaluating the
nine-month durations from a credit score of $3.1 million within the 2021 interval to a cost
of $2.2 million within the 2022 interval. The availability for the present nine-month
interval was primarily resulting from a rise in excellent mortgage loans and
chargeoffs, partially offset by decrease historic loss charges and modifications in
present and forecasted circumstances.

The rise in noninterest revenue of $887,000, excluding $606,000 of positive factors on
gross sales of securities in 2021, is primarily attributable to a closing transition
fee for the conversion of the Financial institution's retail dealer and advisory accounts.
The rise additionally contains increased charges from service provider card companies and revenue
from bank-owned life insurance coverage ("BOLI"). These quantities have been partially offset by
a lower in funding companies revenue because the shift to an out of doors service
supplier resulted in a income sharing settlement and fewer property underneath
administration.



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Noninterest expense elevated $193,000 when evaluating the nine-month durations.
Noninterest expense within the 2021 interval included expenses associated to the 2021
department optimization technique. Excluding the department optimization expenses, the
improve in working bills totaled $1.4 million which was attributable to
increased salaries and advantages expense, occupancy and tools expense and different
expense. The wage and advantages improve contains recruiting of seasoned
banking professionals, mid-year wage will increase in 2022 and better incentive
and stock-based compensation bills. The occupancy and tools improve
contains the prices of latest department areas on the east-end of Lengthy Island and
new company workplace house in Melville, N.Y. The rise in different expense
contains increased advertising and marketing expense, relocation prices and different price of working
the enterprise.

Earnings tax expense elevated $353,000 and the efficient tax charge (revenue tax
expense as a proportion of pre-tax e book revenue) decreased from 20.2% to 19.5%
when evaluating the nine-month durations. The lower within the efficient tax charge is
primarily because of the buy of $20 million of BOLI in December 2021 and being in
a capital tax place for New York State ("NYS") and NYC functions. The rise
in revenue tax expense is because of increased pre-tax earnings within the present
nine-month interval as in comparison with the 2021 interval partially offset by the decrease
efficient tax charge.

Asset High quality. The Financial institution's allowance for credit score losses to complete loans (reserve
protection ratio) was .94% at September 30, 2022 as in comparison with .93% at June 30,
2022 and .96% at December 31, 2021. The rise within the reserve protection ratio
throughout the third quarter was primarily resulting from present and forecasted financial
circumstances. Nonaccrual and modified loans and loans overdue 30 by 89 days
are at very low ranges.

Key Initiatives and Milestones. We proceed specializing in strategic initiatives
supporting the expansion of our steadiness sheet with a worthwhile relationship
banking enterprise. Such initiatives embrace enhancing the standard of know-how
by persevering with digital enhancements and IT system upgrades, optimizing our
department community throughout a bigger geography, utilizing new branding and
"CommunityFirst" focus to enhance title recognition, enhancing our web site and
social media presence together with the promotion of FirstInvestments, and
recruitment of skilled banking professionals to assist our progress and
know-how initiatives. We additionally proceed to give attention to the areas of cybersecurity,
environmental, social and governance practices.

October 1, 2022 marked the Financial institution's ninety fifth anniversary. Since 1927, now we have been
serving to our shoppers succeed. After 95 years, we proceed to be an necessary half
of the communities we function in and have been lately acknowledged within the annual
Piper Sandler Small-All Star Class of 2022 as one of many high 35 performing
small-cap banks and thrifts within the nation.



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web curiosity revenue

Common Stability Sheet; Curiosity Charges and Curiosity Differential. The next
desk units forth the typical day by day balances for every main class of property,
liabilities and stockholders' fairness in addition to the quantities and common charges
earned or paid on every main class of interest-earning property and
interest-bearing liabilities.

                                                       9 Months Ended September 30,
                                                 2022                                   2021
                                    Common     Curiosity/    Common      Common      Curiosity/    Common
({dollars} in hundreds)              Stability     Dividends      Price       Stability      Dividends      Price
Belongings:
Curiosity-earning financial institution balances    $    35,373   $      314     1.19 %   $   217,501   $       204      .13 %
Funding securities:
Taxable (1)                           438,475        6,242     1.90         456,244         6,065     1.77
Nontaxable (1) (2)                    317,802        7,611     3.19         351,254         8,272     3.14
Loans (1) (2)                       3,261,521       86,185     3.52       2,977,583        79,435     3.56
Complete interest-earning property       4,053,171      100,352     3.30       4,002,582        93,976     3.13
Allowance for credit score losses          (30,332)                              (31,905)
Internet interest-earning property         4,022,839                             3,970,677
Money and due from banks                34,041                                34,026
Premises and tools, web            37,967                                38,362
Different property                          140,114                               132,527
                                  $ 4,234,961                           $ 4,175,592
Liabilities and
Stockholders' Fairness:
Financial savings, NOW & cash market
deposits                          $ 1,726,886        3,263      .25     $ 1,808,349         3,451      .26
Time deposits                         345,623        3,474     1.34         324,419         4,818     1.99
Complete interest-bearing deposits     2,072,509        6,737      .43       2,132,768         8,269      .52
Brief-term borrowings                  62,837          775     1.65          55,238         1,062     2.57
Lengthy-term debt                        221,889        3,280     1.98         228,383         3,468     2.03
Complete interest-bearing
liabilities                         2,357,235       10,792      .61       2,416,389        12,799      .71
Checking deposits                   1,451,964                             1,315,768
Different liabilities                      31,826                                27,856
                                    3,841,025                             3,760,013
Stockholders' fairness             393,936                               415,579
                                  $ 4,234,961                           $ 4,175,592

Internet curiosity revenue (2)                         $   89,560                            $    81,177
Internet curiosity unfold (2)                                        2.69 %                                 2.42 %
Internet curiosity margin (2)                                        2.95 %                                 2.70 %


(1) The common balances of loans embrace nonaccrual loans. The common balances
of funding securities embrace unrealized positive factors and losses on AFS securities
within the 2021 interval and exclude such quantities within the 2022 interval. Unrealized positive factors
and losses have been immaterial in 2021.

(2) Tax-equivalent foundation. Curiosity revenue on a tax-equivalent foundation contains the
extra quantity of curiosity revenue that may have been earned if the
Company's funding in tax-exempt loans and funding securities had
been made in loans and funding securities topic to federal revenue taxes
yielding the identical after-tax revenue. The tax-equivalent quantity of $1.00 of
nontaxable revenue was $1.27 in every interval introduced, utilizing the statutory
federal revenue tax charge of 21%.



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Price/Quantity Evaluation. The next desk units forth the impact of modifications in
volumes and charges on tax-equivalent curiosity revenue, curiosity expense and web
curiosity revenue. The modifications attributable to the mixed affect of quantity and
charge have been allotted to the modifications resulting from quantity and the modifications resulting from
charge.

                                             9 Months Ended September 30,
                                                    2022 Versus 2021
                                         Improve (lower) resulting from modifications in:
                                                                             Internet
(in hundreds)                           Quantity                  Price      Change
Curiosity Earnings:
Curiosity-earning financial institution balances        $       (299)            $     409  $     110
Funding securities:
Taxable                                       (250)                  427        177
Nontaxable                                    (792)                  131      (661)
Loans                                         7,584                (834)      6,750
Complete curiosity revenue                         6,243                  133      6,376
Curiosity Expense:
Financial savings, NOW & cash market deposits          (154)                 (34)      (188)
Time deposits                                   307              (1,651)    (1,344)
Brief-term borrowings                           131                (418)      (287)
Lengthy-term debt                                 (98)                 (90)      (188)
Complete curiosity expense                          186              (2,193)    (2,007)
Improve in web curiosity revenue       $       6,057            $   2,326  $   8,383


Internet Curiosity Earnings

Internet curiosity revenue on a tax-equivalent foundation for the 9 months ended
September 30, 2022 was $89.6 million, a rise of $8.4 million, or 10.3%,
from the identical interval of 2021. The rise in web curiosity revenue displays
progress in curiosity revenue on loans of $6.8 million resulting from a rise in common
loans excellent of $283.9 million to $3.3 billion at September 30, 2022 and a
decline in curiosity expense of $2.0 million associated to the maturity and
termination of the Financial institution's rate of interest swap in April 2022. Additionally contributing to
the rise was a good shift within the mixture of funding as a rise in
common checking deposits of $136.2 million, or 10.4%, and a decline in common
interest-bearing liabilities of $59.2 million, or 2.4%, resulted in common
checking deposits comprising a bigger portion of complete funding. Whereas the
common price of interest-bearing liabilities declined 10 bps to .61% when
evaluating the nine-month durations, present funding prices are growing resulting from
increased market rates of interest and competitors.

Curiosity revenue on PPP loans declined $4.0 million to $1.1 million when
evaluating the primary 9 months of 2022 to the identical interval final yr. Excluding
PPP revenue, curiosity revenue on loans would have elevated $10.8 million and the
mortgage portfolio yield would have elevated by 1 bp.

In the course of the third quarter of 2022, we originated $130 million of loans with a
weighted common charge of roughly 4.51% which incorporates $79 million of
business mortgages at a weighted common charge of 4.62%. The mortgage mortgage
pipeline was $68 million with a weighted common charge of 5.51% at September 30,
2022. The quantity of originations throughout the quarter and the pipeline at
quarter-end replicate decrease demand for loans within the market resulting from increased
rates of interest.

Internet curiosity margin for the primary 9 months of 2022 was 2.95% versus 2.70% for
the 2021 interval which incorporates 9 bps and 14 bps, respectively, associated to
prepayment charges, late charges and PPP revenue. Vital will increase in curiosity
charges resulting from inflation are anticipated to adversely have an effect on web curiosity revenue and
margin that are largely depending on modifications within the yield curve and aggressive
and financial circumstances.

Noninterest Earnings

Non-interest revenue contains poly curiosity, service expenses on deposit accounts, positive factors or losses from gross sales of securities, and all different objects of revenue, apart from curiosity, arising from the enterprise’s enterprise actions.

The rise in noninterest revenue of $887,000, excluding $606,000 of positive factors on
gross sales of securities in 2021, is primarily attributable to a closing transition
fee of $477,000 for the conversion of the Financial institution's retail dealer and advisory
accounts. The rise additionally contains increased charges from service provider card companies of
$387,000 and revenue from BOLI of $484,000. These quantities have been partially offset
by a lower in funding companies revenue of $610,000 because the shift to an
outdoors service supplier resulted in a income sharing settlement and fewer property
underneath administration.



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Ineffective bills

Noninterest expense is comprised of salaries and worker advantages, occupancy
and tools expense and different working bills incurred in supporting the
varied enterprise actions of the Company.

Noninterest expense elevated $193,000 when evaluating the nine-month durations.
Noninterest expense within the 2021 interval included expenses of $1.2 million associated
to the 2021 department optimization technique. Excluding the department optimization
expenses, the rise in working bills totaled $1.4 million which was
attributable to increased salaries and advantages expense of $724,000, occupancy and
tools expense of $322,000 and different expense of $376,000. The wage and
advantages improve contains recruiting of seasoned banking professionals,
mid-year wage will increase in 2022 and better incentive and stock-based
compensation bills. The occupancy and tools improve contains the prices
of latest department areas on the east-end of Lengthy Island and new company workplace
house in Melville, N.Y. The rise in different expense contains increased advertising and marketing
expense, relocation prices and different prices of working the enterprise.

Earnings Taxes

Earnings tax expense elevated $353,000 and the efficient tax charge decreased from
20.2% to 19.5% when evaluating the nine-month durations. The lower within the
efficient tax charge is especially because of the buy of $20 million of BOLI in
December 2021 and being in a capital tax place for NYS and NYC functions. The
improve in revenue tax expense is because of increased pre-tax earnings within the present
nine-month interval as in comparison with the 2021 interval partially offset by the decrease
efficient tax charge.

Operations Outcomes – Third Quarter 2022 vs Third Quarter 2021

Internet revenue for the third quarter of 2022 of $12.5 million elevated $1.0
million, or 9.1%, from $11.4 million earned in the identical quarter of final yr.
The rise is especially resulting from progress in web curiosity revenue of $3.7 million, or
13.7%, partially offset by a rise within the provision for credit score losses of
$2.5 million. Additionally offsetting the rise in web curiosity revenue was an
improve in salaries and advantages expense of $780,000 because of the similar causes
mentioned above with respect to the nine-month durations. The rise in web
revenue additionally displays the aforementioned department optimization expenses of $1.2
million within the 2021 quarter.

The rise in web curiosity revenue was primarily resulting from progress in curiosity
revenue on loans of $4.1 million pushed by increased excellent balances and
yields, partially offset by increased curiosity expense resulting from will increase within the
common steadiness and price of interest-bearing liabilities of $75.1 million and 14
bps, respectively, as depositors more and more search increased returns resulting from rising
market rates of interest and competitors. The rise within the provision for credit score
losses was primarily resulting from expenses for present and forecasted financial
circumstances and web chargeoffs of $607,000 on 5 loans bought throughout the 2022
quarter.

SIGNIFICANT ACCOUNTING POLICIES AND ESTIMATES

In making ready the consolidated monetary statements, administration is required to
make estimates and assumptions that have an effect on the reported asset and legal responsibility
balances and income and expense quantities. Our willpower of the ACL is a
vital accounting estimate as a result of it's primarily based on our subjective analysis of
quite a lot of elements at a particular cut-off date and entails tough and
advanced judgements about issues which might be inherently unsure. Within the occasion
that administration's estimate must be adjusted primarily based on extra info
that involves gentle after the estimate is made or modifications in circumstances, such
adjustment might outcome within the want for a considerably totally different ACL and
thereby materially affect, both positively or negatively, the Financial institution's outcomes
of operations.

The Financial institution's Allowance for Credit score Losses Committee ("ACL Committee"), which is a
administration committee chaired by the Chief Credit score Officer, meets on a quarterly
foundation and is liable for figuring out the ACL after contemplating the outcomes
of credit score evaluations carried out by the Financial institution's impartial mortgage evaluate consultants
and the Financial institution's credit score division. As well as, and in session with the
Financial institution's Chief Monetary Officer, the ACL Committee is liable for
implementing and sustaining accounting insurance policies and procedures surrounding the
calculation of the required allowance. The Mortgage Committee evaluations and approves
the Financial institution's Mortgage Coverage no less than as soon as every calendar yr. The Financial institution's ACL is
reviewed and ratified by the Mortgage Committee on a quarterly foundation and is topic
to periodic examination by the Workplace of the Comptroller of the Foreign money
("OCC"), whose security and soundness examination features a willpower as to
the adequacy of the allowance to soak up present anticipated credit score losses.

The ACL is a valuation quantity that's deducted from the loans' amortized price
foundation to current the web quantity anticipated to be collected on the Financial institution's mortgage
portfolio. The allowance is established by provisions for credit score losses
charged towards revenue. When accessible info confirms that particular loans,
or parts thereof, are uncollectible, these quantities are charged towards the
ACL, and subsequent recoveries, if any, are credited to the allowance.

Administration estimates the ACL steadiness utilizing related accessible info, from
inside and exterior sources, referring to previous occasions, present circumstances and
cheap and supportable forecasts. Historic loss info from the
Financial institution's personal mortgage portfolio has been compiled since December 31, 2007 and
typically supplies a place to begin for administration's evaluation of anticipated
credit score losses. A historic look-back interval that begins in 2007 covers an
complete financial cycle and impacts the typical historic loss charges used to



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calculate the ultimate ACL. Changes to historic loss info are made for
variations in present loan-specific danger traits resembling variations in
underwriting requirements, portfolio combine, delinquency stage or time period in addition to for
present and potential future modifications in financial circumstances over a one yr to
two yr forecasting horizon, resembling unemployment charges, GDP, emptiness charges or
different related elements. The rapid reversion methodology is utilized for durations
past the forecasting horizon. The ACL is an quantity that administration at present
believes might be enough to soak up anticipated lifetime losses within the Financial institution's mortgage
portfolio. The method for estimating credit score losses and figuring out the ACL as
of any steadiness sheet date is subjective in nature and requires materials
estimates and judgements. Precise outcomes might differ considerably from these
estimates.

The ACL is measured on a collective (pool) foundation when comparable danger
traits exist. Administration segregates its mortgage portfolio into eleven
distinct swimming pools: (1) business and industrial; (2) small enterprise credit score scored;
(3) multifamily; (4) owner-occupied; (5) different business actual property; (6)
development and land growth; (7) residential mortgage; (8) revolving dwelling
fairness; (9) client; (10) municipal loans; and (11) SBA PPP loans. The classic
methodology is utilized to measure the historic loss part of lifetime credit score
losses inherent in most of its mortgage swimming pools. For the revolving dwelling fairness and
small enterprise credit score scored swimming pools, the PD/LGD methodology is used to measure
historic losses; no historic loss methodology was utilized to the SBA PPP mortgage
pool. Administration believes that the strategies chosen pretty replicate the
historic loss part of anticipated losses inherent within the Financial institution's mortgage
portfolio. Nonetheless, since future losses might range considerably from these
skilled prior to now, on a quarterly foundation administration adjusts its historic
loss expertise to replicate present circumstances and cheap and supportable
forecasts. In doing so, administration considers quite a lot of Q-factors after which
subjectively determines the load to assign to every in estimating losses. The
elements embrace: (1) modifications in lending insurance policies and procedures; (2) expertise,
skill and depth of lending employees; (3) tendencies within the nature and quantity of
loans; (4) modifications within the high quality of the mortgage evaluate operate; (5)
delinquencies; (6) environmental dangers; (7) present and forecasted financial
circumstances as judged by issues resembling nationwide and native unemployment ranges
and GDP; (8) modifications within the worth of underlying collateral as judged by issues
resembling median dwelling costs and forecasted emptiness charges within the Financial institution's service
space; and (9) route and magnitude of modifications within the economic system. The Financial institution's ACL
allocable to its mortgage swimming pools outcomes primarily from these Q-factor changes to
historic loss expertise with the biggest sensitivity of the ACL and provision
arising from mortgage progress, mortgage concentrations and financial forecasts of
unemployment, GDP and vacancies. Due to the character of the Q-factors and the
problem in assessing their affect, administration's ensuing estimate of losses
might not precisely replicate lifetime losses within the portfolio.

Loans that don't share comparable danger traits are evaluated on an
particular person foundation. Such disparate danger traits might embrace inside or
exterior credit score scores, danger scores, collateral kind, measurement of mortgage, efficient
rate of interest, time period, geographic location, business or historic or anticipated
loss sample. Estimated losses for loans individually evaluated are primarily based on
both the truthful worth of collateral or the discounted worth of anticipated future
money flows. For all collateral dependent loans evaluated on a person foundation,
credit score losses are measured primarily based on the truthful worth of the collateral. In
estimating the truthful worth of actual property collateral, administration makes use of
value determinations or evaluations adjusted for prices to dispose and a distressed sale
adjustment, if wanted. Estimating the truthful worth of collateral apart from actual
property can also be subjective in nature and generally requires tough and complicated
judgements. Figuring out anticipated future money flows might be extra subjective than
figuring out truthful values. Anticipated future money flows might differ considerably,
each in timing and quantity, from the money flows acquired over the mortgage's
remaining life. Individually evaluated loans should not included within the estimation
of credit score losses from the pooled portfolio.

Asset high quality

Details about the Company's danger components is ready forth beneath. Threat
components embrace nonaccrual loans, different actual property owned, loans which might be
contractually overdue 30 days or extra and modifications made to debtors
experiencing monetary problem. These danger components current greater than the
regular danger that the Company might be unable to finally gather or understand
their full carrying worth.

                                                          September 30,    December 31,
(in hundreds)                                                2022             2021
Loans together with modifications to debtors
experiencing monetary problem:
Modified and performing in response to their modified
phrases                                                    $           485   $         554
Overdue 30 by 89 days                                          526    

460

Overdue 90 days or extra and nonetheless accruing                            -               -
Nonaccrual                                                             -           1,235
                                                                   1,011           2,249
Different actual property owned                                                -               -
                                                         $         1,011   $       2,249

Disclosures of different probably problematic loans might be discovered on “Observe 4 – Loans” to the corporate’s consolidated monetary statements on this Kind 10-Q.


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Provision and provisions for credit score losses

The ACL is established by provisions for credit score losses charged towards
revenue. When accessible info confirms that particular loans, or parts
thereof, are uncollectible, these quantities are charged off towards the ACL, and
subsequent recoveries, if any, are credited to the ACL.

The ACL elevated $1.5 million throughout the first 9 months of 2022, amounting
to $31.3 million, or .94% of complete loans, at September 30, 2022 in comparison with
$29.8 million, or .96% of complete loans, at December 31, 2021. In the course of the first
9 months of 2022, the Financial institution had mortgage chargeoffs of $796,000, recoveries of
$64,000 and recorded a provision of $2.2 million. In the course of the first 9 months
of 2021, the Financial institution had mortgage chargeoffs of $1.0 million, recoveries of $553,000
and recorded a credit score provision of $3.1 million. The availability within the present
interval was primarily resulting from a rise in excellent mortgage loans and
chargeoffs, partially offset by decrease historic loss charges and modifications in
present and forecasted circumstances. The credit score provision within the 2021 interval was
primarily resulting from enhancements in financial circumstances, asset high quality and different
portfolio metrics and a decline in excellent residential mortgage loans,
partially offset by web chargeoffs.

The ACL is an quantity that administration at present believes might be enough to
take in anticipated lifetime losses within the Financial institution's mortgage portfolio. As extra totally
mentioned in "Essential Accounting Insurance policies and Estimates," the method for
estimating credit score losses and figuring out the ACL as of any steadiness sheet date is
subjective in nature and requires materials estimates and judgements. Precise
outcomes might differ considerably from these estimates. Different detailed
info on the Financial institution's mortgage portfolio and ACL might be present in "Observe 4 -
Loans" to the Company's consolidated monetary statements included on this
Kind 10-Q.

The quantity of future chargeoffs and provisions for credit score losses might be
affected by financial circumstances on Lengthy Island and within the boroughs of NYC. Such
circumstances might have an effect on the monetary power of the Financial institution's debtors and can
have an effect on the worth of actual property collateral securing the Financial institution's mortgage loans.
Loans secured by actual property characterize roughly 97% of the Financial institution's complete
loans excellent at September 30, 2022. Nearly all of these loans are
collateralized by properties positioned on Lengthy Island and within the boroughs of NYC.
Whereas enterprise exercise within the New York metropolitan space has improved,
inflation and growing charges pose new financial challenges and should end in
increased chargeoffs and provisions.

Future provisions and prices may also be affected by environmental injury to the property that secures the financial institution’s mortgage loans. Presently, the administration isn’t conscious of any environmental air pollution arising from or close to the properties that safe the Financial institution’s loans that may materially have an effect on the e book worth of those loans.

money circulation and liquidity

Money Flows. The Company's main sources of money are deposits, maturities
and amortization of loans and funding securities, operations and borrowings.
The Company makes use of money from these and different sources to fund mortgage progress,
buy funding securities, repay borrowings, develop and enhance its
bodily amenities, pay money dividends, repurchase its frequent inventory and for
basic company functions.

The Company's money and money equal place at September 30, 2022 was
$62.2 million, up from $43.7 million at December 31, 2021. The rise occurred
primarily as a result of money offered by deposit progress, paydowns or repayments of
securities and loans, proceeds from long-term debt and operations exceeded money
used to repay borrowings, buy securities, originate loans, repurchase
frequent inventory and pay money dividends.

Securities decreased $70.1 million throughout the first 9 months of 2022, from
$734.3 million at year-end 2021 to $664.2 million at September 30, 2022. The
lower is primarily attributable to maturities and redemptions of $38.1
million and unrealized losses of $96.2 million throughout the interval, partially
offset by purchases of $65.5 million.

In the course of the first 9 months of 2022, complete deposits grew $271.5 million, or
8.2%, to $3.6 billion at September 30, 2022. The rise was attributable to
progress in financial savings, NOW and cash market deposits of $99.6 million and time
deposits of $175.8 million, partially offset by a lower of $3.8 million in
checking deposits. The rise in time deposits was because of the buy of
brokered CDs totaling $165 million.

Liquidity. The Financial institution has a board committee authorized liquidity coverage and
liquidity contingency plan, that are supposed to make sure that the Financial institution has
ample liquidity always to fulfill the continued wants of its prospects in
phrases of credit score and deposit outflows, benefit from earnings enhancement
alternatives and reply to liquidity stress circumstances ought to they come up.

The Financial institution has each inside and exterior sources of liquidity that can be utilized to
fund mortgage progress and accommodate deposit outflows. The Financial institution's main inside
sources of liquidity are maturities and month-to-month funds from its funding
securities and mortgage portfolios, operations and funding securities designated
as AFS. At September 30, 2022, the Financial institution had roughly $159.9 million of
unencumbered AFS securities.



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The Financial institution is a member of the Federal Reserve Financial institution ("FRB") of New York and the
FHLB of New York and has a federal funds line with a business financial institution. In
addition to buyer deposits, the Financial institution's main exterior sources of liquidity
are secured borrowings from the FRB of New York and FHLB of New York. In
addition, the Financial institution can draw funds underneath its current line and the Company
might increase funds by its Dividend Reinvestment and Inventory Buy Plan.
Nonetheless, the Financial institution's FRB of New York membership, FHLB of New York membership and
unsecured line don't characterize authorized commitments to increase credit score to the Financial institution.
The quantity that the Financial institution can probably borrow is at present depending on the
quantity of unencumbered eligible securities and loans that the Financial institution can use as
collateral and the collateral margins required by the lenders. Primarily based on the
Financial institution's unencumbered securities and mortgage collateral, a considerable portion of
which is in place on the FRB of New York and FHLB of New York, the Financial institution had a
borrowing capability of roughly $1.8 billion at September 30, 2022. The
Financial institution's borrowing capability could also be adjusted by the FRB of New York or the FHLB of
New York and should bear in mind elements such because the Financial institution's tangible frequent
fairness ratio, collateral margins required by the lender or different elements.

capital

Stockholders' fairness was $359.4 million at September 30, 2022 versus $413.8
million at December 31, 2021. The lower was primarily resulting from a decline within the
after-tax worth of the Financial institution's AFS funding securities of $66.6 million, money
dividends declared of $13.9 million and customary inventory repurchases of $13.9
million, partially offset by web revenue of $37.0 million. The aforementioned
decline in worth of the AFS funding securities portfolio was resulting from an
improve in rates of interest throughout the first 9 months of 2022. The truthful worth
of the AFS funding securities portfolio might proceed to say no with
additional will increase in rates of interest.

The Company's ROE for the primary 9 months of 2022 was 12.57%, a rise
when in comparison with 10.96% for a similar interval final yr. The rise in ROE was
resulting from increased web revenue in addition to a rise in gathered different
complete loss resulting from a big improve within the web unrealized loss in
the AFS securities portfolio from increased rates of interest. The losses within the AFS
securities portfolio, which decreased the typical steadiness of stockholders' fairness,
accounted for 1.00% of the advance within the ROE ratio when in comparison with the
prior yr interval. The unrealized loss additionally accounted for a $2.86 discount in
e book worth per share of $15.87 at September 30, 2022. E book worth per share was
$17.81 at year-end 2021. Primarily based on the Company's market worth per share at
September 30, 2022 of $17.24, the dividend yield is 4.9%.

The Company and the Financial institution have elected to undertake the neighborhood financial institution leverage
ratio ("CBLR") framework, which requires a leverage ratio of better than 9.00%.
As a qualifying neighborhood banking group, the Company and the Financial institution might
decide out of the CBLR framework in any subsequent quarter by finishing its
regulatory company reporting utilizing the normal capital guidelines.

The Company's capital administration coverage is designed to construct and preserve
capital ranges that exceed regulatory requirements and appropriately present for
progress. The Leverage Ratios of each the Company and the Financial institution at September
30, 2022 have been 9.75%, and fulfill the properly capitalized ratio necessities underneath
the Immediate Corrective Motion statutes. The Company and the Financial institution elected the
elective five-year transition interval offered by the federal banking businesses
for recognizing the regulatory capital affect of the implementation of CECL.

The Company has a inventory repurchase program underneath which it's approved to
buy shares of its frequent inventory infrequently by open market
purchases, privately negotiated transactions, or in every other method that's
compliant with relevant securities legal guidelines. In the course of the first 9 months of 2022,
the Company repurchased 698,476 shares of its frequent inventory at a complete price
of $13.9 million. The Company can repurchase one other $19.0 million underneath
Board authorized repurchase applications. We count on to proceed frequent inventory
repurchases throughout the the rest of 2022.

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