UNITED STATES
                       SECURITIES AND EXCHANGE COMMISSION
                             Washington, D.C. 20549

                                    FORM 10-Q

(Mark One)      Quarterly Report Pursuant to Section 13 or 15(d) of
    [X]                the Securities Exchange Act of 1934
                For the quarterly period ended September 30, 2003
                                         OR
    [ ]         Transition Report Pursuant to Section 13 or 15(d) of
                        the Securities Exchange Act of 1934
                For the transition period from ______ to _______

                          Commission File No.: 0-29826

                           LONG ISLAND FINANCIAL CORP.
                           ---------------------------
             (Exact name of registrant as specified in its charter)

                 Delaware                                 11-3453684
                 --------                                 ----------
     (State or other jurisdiction of        (I.R.S. Employer Identification No.)
     incorporation or organization)

          One Suffolk Square
     1601 Veterans Memorial Highway
           Islandia, New York                               11749
           ------------------                               -----
(Address of Principal Executive Offices)                 (Zip Code)

                                 (631) 348-0888
                                 --------------
              (Registrant's telephone number, including area code)



Indicate by check mark whether the registrant (1) has filed all reports required
to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during
the  preceding 12 months (or for such  shorter  period that the  registrant  was
required  to file  such  reports),  and  (2) has  been  subject  to such  filing
requirements for the past 90 days. Yes [X] No [ ]


Indicate  by check mark  whether  the  registrant  is an  accelerated  filer (as
defined in Rule 12B-2 of the Exchange Act): Yes [ ] No [X]


Indicate the number of shares  outstanding  of each of the  issuer's  classes of
common stock, as of the latest practicable date.

Common Stock par value $.01, per share.  The registrant had 1,485,908  shares of
Common Stock outstanding as of November 7, 2003.


<PAGE>
<TABLE>


                                                              Form 10-Q
                                                     LONG ISLAND FINANCIAL CORP.

                                                                INDEX
<S>                                                    <C>                                          <C>
                                                                                                   Page
PART I - FINANCIAL INFORMATION                                                                    Number
------------------------------                                                                    ------

ITEM 1.  Consolidated Financial Statements - Unaudited

         Consolidated Balance Sheets at September 30, 2003
               and December 31, 2002                                                                 2
         Consolidated Statements of Earnings for the Three Months and
               Nine Months Ended September 30, 2003 and 2002                                         3
         Consolidated Statement of Changes in Stockholders' Equity
               for the Nine Months Ended September 30, 2003                                          4
         Consolidated Statements of Cash Flows for the Nine Months
               Ended September 30, 2003 and 2002                                                     5
         Notes to Consolidated Financial Statements                                                  6

ITEM 2.  Management's Discussion and Analysis of Financial
               Condition and Results of Operations                                                   9

ITEM 3.  Quantitative and Qualitative Disclosures About Market Risk                                 19

ITEM 4.  Controls and Procedures                                                                    20


PART II  - OTHER INFORMATION
-------  -------------------

ITEM 1.  Legal Proceedings                                                                          20

ITEM 2.  Changes in Securities and Use of Proceeds  20

ITEM 3.  Defaults Upon Senior Securities                                                            20

ITEM 4.  Submission of Matters to a Vote of Security Holders                                        20

ITEM 5.  Other Information                                                                          20

ITEM 6.  Exhibits and Reports on Form 8-K                                                           20

SIGNATURES                                                                                          21
----------

</TABLE>



                                       1
<PAGE>


<TABLE>

PART I - FINANCIAL INFORMATION
------------------------------

Item 1.  Consolidated Financial Statements
-------  ---------------------------------

                                                     LONG ISLAND FINANCIAL CORP.
                                                     Consolidated Balance Sheets
                                                             (Unaudited)
                                                  (In thousands, except share data)

                                                                                   September 30,       December 31,
                                                                                       2003                2002
                                                                                       ----                ----
Assets:

<S>                                                                                <C>                 <C>
Cash and due from banks                                                            $   10,932          $  20,443
Interest earning deposits                                                                  80                 47
Federal funds sold                                                                          -              5,300
                                                                                         ----              -----
              Total cash and cash equivalents                                          11,012             25,790
Securities held-to-maturity (fair value of $14,489 and $14,027, respectively)          12,471             12,461
Securities available-for-sale, at fair value                                          205,532            219,590
Federal Home Loan Bank stock, at cost                                                   4,500              3,588
Loans, net of unearned income and deferred fees                                       225,194            217,731
Less allowance for loan losses                                                         (2,382)            (2,346)
                                                                                        -----              -----
              Loans, net                                                              222,812            215,385
Premises and equipment, net                                                             5,175              3,530
Accrued interest receivable                                                             2,345              2,654
Bank owned life insurance                                                               8,100              7,859
Prepaid expenses and other assets                                                       2,108              1,094
                                                                                        -----              -----
              Total assets                                                         $  474,055          $ 491,951
                                                                                      =======            =======

Liabilities and Stockholders' Equity:

Deposits:
    Demand deposits                                                                $  100,497          $  78,697
    Savings deposits                                                                   99,453             73,780
    NOW and money market deposits                                                      54,381            130,636
    Time certificates issued in excess of $100,000                                     14,198             20,516
    Other time deposits                                                                86,118             96,905
                                                                                       ------             ------
              Total deposits                                                          354,647            400,534
Federal funds purchased and securities sold under agreements to repurchase             18,000                  -
Other borrowings                                                                       65,000             55,000
Accrued expenses and other liabilities                                                  3,096              3,344
                                                                                        -----              -----
              Total liabilities                                                       440,743            458,878
                                                                                      -------            -------

Guaranteed preferred beneficial interest in junior subordinated
               debentures                                                               7,500              7,500
                                                                                        -----              -----

Stockholders' equity:
    Common stock (par value $.01 per share; 10,000,000 shares authorized;
      1,820,622 and 1,783,126 shares issued; 1,483,722 and
      1,446,226 shares outstanding, respectively)                                          18                 18
    Surplus                                                                            20,888             20,281
    Accumulated surplus                                                                 9,558              7,625
    Accumulated other comprehensive (loss) income                                        (474)             1,827
    Treasury stock at cost, (336,900 shares in 2003 and 2002)                          (4,178)            (4,178)
                                                                                        -----              -----
              Total stockholders' equity                                               25,812             25,573
                                                                                       ------             ------
              Total liabilities and stockholders' equity                           $  474,055          $ 491,951
                                                                                      =======            =======

See accompanying notes to consolidated financial statements.
</TABLE>



                                       2
<PAGE>


<TABLE>

                                                     LONG ISLAND FINANCIAL CORP.
                                                 Consolidated Statements of Earnings
                                                             (Unaudited)
                                                  (In thousands, except share data)
<S>                                                                    <C>           <C>             <C>          <C>
                                                                         For the Three Months          For the Nine Months
                                                                          Ended September 30,          Ended September 30,
                                                                          -------------------          -------------------

                                                                         2003         2002                2003      2002
                                                                         ----         ----                ----      ------
Interest income:
     Loans                                                             $ 3,762       $ 3,688         $  11,355    $ 10,710
     Securities                                                          2,071         2,068             6,458       6,664
     Federal funds sold                                                     13            35                61          89
     Earning deposits                                                        2             2                 4           6
                                                                             -             -                 -           -
         Total interest income                                           5,848         5,793            17,878      17,469
                                                                         -----         -----            ------      ------

Interest expense:
     Savings deposits                                                      272           341               849         742
     NOW and money market deposits                                          96           123               569         536
     Time certificates issued in excess of $100,000                         95           163               257         581
     Other time deposits                                                   757           987             2,489       3,049
     Borrowed funds                                                        746           665             2,144       1,999
                                                                           ---           ---             -----       -----
         Total interest expense                                          1,966         2,279             6,308       6,907
                                                                         -----         -----             -----       -----

         Net interest income                                             3,882         3,514            11,570      10,562
                                                                         -----         -----            ------      ------

Provision for loan losses                                                    -            60                60         210
                                                                           ---            --                --         ---

         Net interest income after provision
              for loan losses                                            3,882         3,454            11,510      10,352
                                                                         -----         -----            ------      ------

Other operating income:
     Service charges on deposit accounts                                   550           445             1,530       1,287
     Net gain on sale of securities                                        158             -               400           -
     Net gain on sale of residential loans                                 185           189               512         525
     Earnings on bank owned life insurance                                 102            96               306         288
     Other                                                                 141           116               399         334
                                                                           ---           ---               ---         ---
         Total other operating income                                    1,136           846             3,147       2,434
                                                                         -----           ---             -----       -----

Other operating expenses:
     Salaries and employee benefits                                      1,918         1,632             5,533       4,594
     Occupancy expense                                                     296           235               787         664
     Premises and equipment expense                                        346           309               993         891
     Capital securities                                                    209           209               620         614
     Other                                                               1,015           886             3,030       2,682
                                                                         -----           ---             -----       -----
         Total other operating expenses                                  3,784         3,271            10,963       9,445
                                                                         -----         -----            ------       -----

         Income before income taxes                                      1,234         1,029             3,694       3,341

Income taxes                                                               440           353             1,320       1,148
                                                                           ---           ---             -----       -----

         Net income                                                    $   794       $   676         $   2,374    $  2,193
                                                                           ===           ===             =====       =====

Basic earnings per share                                               $   .54       $    .47        $    1.62    $   1.52
                                                                           ===            ===             ====        ====
Diluted earnings per share                                             $   .51       $    .45        $    1.54    $   1.47
                                                                           ===            ===             ====        ====
Weighted average shares outstanding                                  1,481,347      1,446,226        1,467,496   1,444,307
                                                                     =========      =========        =========   =========
Diluted weighted average shares outstanding                          1,555,731      1,503,461        1,537,465   1,492,038
                                                                     =========      =========        =========   =========

See accompanying notes to consolidated financial statements.
</TABLE>


                                       3
<PAGE>


<TABLE>


                                                     LONG ISLAND FINANCIAL CORP.
                                      Consolidated Statement of Changes in Stockholders' Equity
                                            For the Nine Months Ended September 30, 2003
                                                             (Unaudited)
                                                  (In thousands, except share data)
<S>                                           <C>         <C>         <C>            <C>           <C>        <C>
                                                                                  Accumulated
                                                                                     other
                                            Common                 Accumulated   comprehensive   Treasury
                                             stock       Surplus     surplus     income (loss)    stock      Total
                                             -----       -------     -------     -------------    -----      -----


Balance at December 31, 2002               $   18        20,281      7,625          1,827         (4,178)    25,573
Comprehensive income:
    Net income                                  -             -      2,374              -              -      2,374
      Other comprehensive loss,
        net of tax:
         Unrealized depreciation in
         available-for-sale securities,
         net of reclassification adjustment     -             -          -         (2,301)             -     (2,301)
                                                                                                              -----
Total comprehensive income                                                                                       73

Exercise of stock options and related
     tax benefit, issued 33,343 shares          -           489          -              -              -        489

Dividend reinvestment and stock purchase
     plan, issued 4,153 shares                  -           118          -              -              -        118

Dividends declared on common stock
     ($.30 per common share)                    -             -       (441)             -              -       (441)
                                               --------------------------------------------------------------------

Balance at September 30, 2003              $   18        20,888      9,558           (474)        (4,178)    25,812
                                               ====================================================================



See accompanying notes to consolidated financial statements.

</TABLE>


                                       4
<PAGE>



<TABLE>


                                                     LONG ISLAND FINANCIAL CORP.
                                                Consolidated Statements of Cash Flows
                                                             (Unaudited)
                                                           (In thousands)
<S>                                                                                  <C>              <C>
                                                                                      For the Nine Months
                                                                                      Ended September 30,
                                                                                      -------------------
                                                                                     2003            2002
                                                                                     ----            ----
Cash flows from operating activities:
    Net income                                                                $     2,374      $     2,193
    Adjustments to reconcile net income to net cash
    provided by operating activities:
     Provision for loan losses                                                         60              210
     Depreciation and amortization                                                    727              678
     Amortization of premiums, net of discount accretion                            1,463            1,074
     Net gain on sale of securities                                                  (400)               -
     Loans originated for sale, net of proceeds from sales and gains               (1,682)               2
     Net deferred loan origination fees                                               126               49
     Earnings on bank owned life insurance                                           (306)            (288)
     Deferred income taxes                                                              -              (66)
     Change in other assets and liabilities:
         Accrued interest receivable                                                  309             (394)
         Prepaid expenses and other assets                                            222              110
         Accrued expenses and other liabilities                                      (107)          (1,184)
                                                                                      ---            -----
         Net cash provided by operating activities                                  2,786            2,384
                                                                                    -----            -----

Cash flows from investing activities:
     Purchases of securities held-to-maturity, available-for-sale                (565,050)        (644,846)
     Net (purchase) redemption of Federal Home Loan Bank stock                       (912)             108
     Proceeds from the sale of securities available-for-sale                       30,607                -
     Proceeds from maturities of securities                                       514,181          667,018
     Principal repayments on securities                                            29,634           33,929
     Loan originations, net of principal repayments                                (5,931)         (20,745)
     Purchase of premises and equipment                                            (2,372)          (1,087)
                                                                                    -----            -----
         Net cash provided by investing activities                                    157           34,377
                                                                                      ---           ------

Cash flows from financing activities:
     Net decrease in demand deposit, savings, NOW,
         and money market accounts                                                (28,782)         (25,926)
     Net decrease in certificates of deposit                                      (17,105)          (8,665)
     Net increase (decrease) in federal funds purchased and securities sold
         under agreements to repurchase                                            18,000           (4,500)
     Net increase in other borrowings                                              10,000                -
     Proceeds from exercise of stock options                                          489               90
     Proceeds from shares issued under the dividend reinvestment
         and stock purchase plan                                                      118                -
     Payments for cash dividends                                                     (441)            (391)
                                                                                      ---              ---
         Net cash used in financing activities                                    (17,721)         (39,392)
                                                                                   ------           ------

         Net decrease in cash and cash equivalents                                (14,778)          (2,631)

Cash and cash equivalents at beginning of period                                   25,790           30,626
                                                                                   ------           ------
Cash and cash equivalents at end of period                                    $    11,012      $    27,995
                                                                                   ======           ======

Supplemental disclosure of cash flow information:
-------------------------------------------------
Cash paid during the period for:
     Interest                                                                 $     6,945      $     7,906
                                                                                    =====            =====
     Income taxes                                                             $     1,107      $     1,679
                                                                                    =====            =====

See accompanying notes to consolidated financial statements.
</TABLE>



                                       5
<PAGE>



                           LONG ISLAND FINANCIAL CORP.
                   NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
                                   (Unaudited)

Private Securities Litigation Reform Act Safe Harbor Statement

Statements  contained  in this Form  10-Q  which  are not  historical  facts are
forward-looking  statements  as that term is defined in the  Private  Securities
Litigation  Reform Act of 1995.  Amounts stated herein could vary as a result of
market and other factors.  Such forward-looking  statements are subject to risks
and  uncertainties  which could cause actual results to differ  materially  from
those currently  anticipated due to a number of factors,  which include, but are
not limited to, factors  discussed in documents  filed by Long Island  Financial
Corp. (the  "Company") with the Securities and Exchange  Commission from time to
time. Such forward-looking statements may be identified by the use of such words
as "believe," "expect," "anticipate," "should," "planned," "estimated," "intend"
and "potential".  Examples of forward looking  statements  include,  but are not
limited to,  estimates  with  respect to the  financial  condition,  expected or
anticipated revenue,  results of operations and business of the Company that are
subject to various factors which could cause actual results to differ materially
from these  estimates.  The Company's  ability to predict  results or the actual
effect of future plans or  strategies  is  inherently  uncertain.  Factors which
could have a material  adverse effect on the operations of the Company  include,
but are not limited to, changes in: interest rates; general economic conditions;
monetary and fiscal policies of the U. S. Government,  including policies of the
U.S.  Treasury and the Federal Reserve Board;  the quality or composition of the
loan or investment portfolios; demand for loan and non-deposit products; deposit
flows;  real estate  values;  the level of defaults,  losses and  prepayments on
loans held by the Company in its  portfolio  or sold in the  secondary  markets;
demand  for  financial  services  in the  Company's  market  area;  competition;
accounting  principles,  policies,  practices  or  guidelines;   legislation  or
regulation;  and other  economic,  competitive,  governmental,  regulatory,  and
technological factors affecting the Company's operations,  pricing, products and
services.  The  forward-looking  statements are made as of the date of this Form
10-Q,  and,  except as  required  by  applicable  law,  the  Company  assumes no
obligation to update the forward-looking statements or to update the reasons why
actual  results  could  differ  from  those  projected  in  the  forward-looking
statements.  These risks and  uncertainties  should be  considered in evaluating
forward-looking  statements,  which speak only as of the date of this Form 10-Q,
and undue reliance should not be placed on such statements.


1.       BASIS OF PRESENTATION

The accompanying unaudited consolidated financial statements include the
accounts of Long Island Financial Corp. and its wholly-owned subsidiaries. All
significant inter-company accounts and transactions have been eliminated in
consolidation.

The accompanying  unaudited  consolidated  financial  statements included herein
reflect  all  normal  recurring   adjustments  which  are,  in  the  opinion  of
management,  necessary  for a fair  presentation  of the results for the interim
periods  presented.  The results of operations for the  nine-month  period ended
September 30, 2003, are not necessarily  indicative of the results of operations
that may be expected for the entire fiscal year.  Certain  information  and note
disclosures  normally  included in financial  statements  prepared in accordance
with accounting  principles  generally  accepted in the United States of America
have been  condensed  or omitted  pursuant to the rules and  regulations  of the
Securities and Exchange Commission.  Certain reclassifications have been made to
prior year amounts to conform to the current year presentation.  These unaudited
consolidated financial statements should be read in conjunction with the audited
consolidated financial statements,  and notes thereto, included in the Company's
2002 Annual Report on Form 10-K.


                                       6
<PAGE>

The Company makes  available  through its Internet  website,  www.licb.com,  its
annual reports on Form 10-K,  quarterly reports on Form 10-Q, current reports on
Form 8K, and all  amendments  to those  reports  filed or furnished  pursuant to
Section 13(a) or 15(d) of the Securities  Exchange Act of 1934. Such reports are
free of charge and are  available as soon as  reasonably  practicable  after the
Company  electronically  files  such  material  with,  or  furnishes  it to, the
Securities and Exchange Commission.

2.       SECURITIES

The following table sets forth certain information  regarding amortized cost and
estimated fair values of the securities  held-to-maturity and available-for-sale
as of the dates indicated:
<TABLE>
<S>                                                        <C>               <C>       <C>                <C>
                                                               September 30, 2003           December 31, 2002
                                                               ------------------           -----------------
                                                             Amortized        Fair        Amortized       Fair
                                                               Cost           Value         Cost          Value
                                                               ----           -----         ----          -----
                                                                                (In thousands)
    Held-to-maturity:
    Corporate debt                                         $   12,471        14,489    $   12,461         14,027
                                                               ------        ------        ------         ------
         Total held-to-maturity                            $   12,471        14,489    $   12,461         14,027
                                                               ======        ======        ======         ======

    Available-for-sale:
    U.S. Government and Agency obligations                 $  152,656       151,892    $  129,345        130,422
    Mortgage-backed securities:
       GNMA                                                    41,821        41,604        62,565         63,971
       FHLMC                                                    6,545         6,603        12,920         13,122
       FNMA                                                     3,244         3,302         9,879         10,015
    Corporate debt                                              2,011         2,131         2,013          2,060
                                                                -----         -----         -----          -----
        Total securities available-for-sale                $  206,277       205,532    $  216,722        219,590
                                                              =======       =======       =======        =======
</TABLE>

3.       LOANS, NET

Loans, net, are summarized as follows:
<TABLE>
<S>                                                        <C>               <C>       <C>                <C>
                                                             September 30, 2003                December 31, 2002
                                                             ------------------                -----------------
                                                                            (Dollars in thousands)
    Commercial and industrial loans                        $    43,525    19.0 %             $    54,001   24.3 %
    Commercial real estate loans                               142,788    62.2                   130,275   58.7
    Automobile loans                                            39,122    17.1                    34,188   15.4
    Consumer loans                                               1,021      .4                     2,238    1.0
    Residential real estate loans held-for-sale                  2,871     1.3                     1,189     .6
                                                                 -----     ---                     -----     --
                                                               229,327   100.0                   221,891  100.0
    Less:
    Unearned income                                              3,243                             3,396
    Deferred fees, net                                             890                               764
    Allowance for loan losses                                    2,382                             2,346
                                                                 -----                             -----
                                                           $   222,812                       $   215,385
                                                               =======                           =======
</TABLE>

4.       STOCK BASED COMPENSATION

The Company applies the intrinsic-value based method of accounting prescribed by
Accounting Principles Board (APB) Opinion No. 25, Accounting for Stock Issued to
Employees, and related interpretations  including Financial Accounting Standards
Board  (FASB)   Interpretation  No.  44,  Accounting  for  Certain  Transactions
involving Stock Compensation, an interpretation of APB Opinion No. 25, issued in
March 2000,  to account for its  fixed-plan  stock  options.  Under this method,
compensation expense is recorded on the date of grant only if the current market
price  of  the  stock  exceeded  the  exercise  price.  Statement  of  Financial
Accounting  Standards (SFAS) No. 123,  Accounting for Stock Based  Compensation,
established  accounting and  disclosure  requirements  using a  fair-value-based
method of accounting for stock-based employee  compensation plans. As allowed by
SFAS  No.   123,   the   Company   has   elected  to   continue   to  apply  the
intrinsic-value-based method of accounting described above, and has adopted only
the disclosure requirements of SFAS No. 123. The following table illustrates the
effect on net  income if the  fair-value-based  method  had been  applied to all
stock  options  granted or vested in each  period.

                                       7
<PAGE>

<TABLE>

                                                                        For the Three Months         For the Nine Months
                                                                        Ended September 30,          Ended September 30,
                                                                        -------------------          -------------------
<S>                                                                      <C>          <C>              <C>        <C>
                                                                         2003        2002              2003      2002
                                                                         ----        ----              ----      ----
                                                                         (Dollars in thousands, except per share data)

       Net income as reported                                          $  794       $ 676          $  2,374   $ 2,193
       Deduct total stock-based employee compensation
                expense determined under fair-value-based
                method for all awards, net of tax                          53          33               241       124
                                                                           --          --               ---       ---
       Pro forma net income                                            $  741       $ 643          $  2,133   $ 2,069
                                                                          ===         ===             =====     =====

       Earnings per share:
       Basic                                   As Reported             $  .54       $ .47          $   1.62   $  1.52
                                               Pro forma                  .50         .44              1.45      1.43
       Diluted                                 As Reported                .51         .45              1.54      1.47
                                               Pro forma                  .48         .43              1.39      1.39
</TABLE>

5.       RECENT DEVELOPMENTS

On August 27, 2003,  the Board of Directors of the Company  declared a quarterly
dividend of ten cents per common  share.  The dividend was paid October 1, 2003,
to shareholders of record as of September 19, 2003.

6.       OTHER COMMITMENTS AND CONTINGENT LIABILITIES

In the normal course of business,  the Bank enters into  commitments to purchase
investment  securities.   At  September  30,  2003,  the  Bank  had  outstanding
commitments of $3 million to purchase investment securities.

7.       RECENT ACCOUNTING PRONOUNCEMENTS

SFAS No. 150, "Accounting for Certain Financial Instruments with Characteristics
of both  Liabilities  and  Equity",  establishes  standards  for  how an  issuer
clarifies,  measures and discloses in its financial statements certain financial
instruments with  characteristics  of both liabilities and equity.  SFAS No. 150
requires that an issuer classify financial instruments that are within the scope
of SFAS 150 as liabilities  in most  circumstances.  Such financial  instruments
include  shares  that  are  mandatorily  redeemable  such as the  $7,500,000  of
guaranteed preferred beneficial interests in junior subordinated debentures.  As
of November 13, 2003, the  implementation of several provisions of SFAS No. 150,
including  the   classification  of  the  $7,500,000  of  guaranteed   preferred
beneficial  interests in junior  subordinated  debentures  has been postponed by
FASB for an  indefinite  period.

In April 2003,  the FASB  issued SFAS No.  149,"Amendment  of  Statement  133 on
Derivative  Instruments  and  Hedging  Activities."  SFAS  No.  149  amends  and
clarifies  accounting for derivative  instruments  (collectively  referred to as
derivatives),   including  certain  derivative  instruments  embedded  in  other
contracts and for hedging activities under SFAS 133,  "Accounting for Derivative
Instruments and Hedging Activities." SFAS 149 is effective for contracts entered
into or  modified  after  September  30,  2003,  and for  hedging  relationships
designated  after  September 30, 2003, and is to be applied  prospectively.  The
provisions  of SFAS No. 149 that relate to Statement 133  Implementation  Issues
that have been  effective for fiscal  quarters that began prior to September 15,
2003, will continue to be applied in accordance with their respective  effective
dates. In addition, certain provisions relating to forward purchases or sales of
when-issued  securities  or  other  securities  that do not yet  exist,  will be
applied  to  existing  contracts  as well as new  contracts  entered  into after
September  30, 2003.  The adoption of SFAS No. 149 did not have an impact on the
Company's consolidated balance sheets or consolidated statements of earnings.

In January 2003, FASB issued FASB Interpretation  ("FIN") No.46,  "Consolidation
of  Variable  Interest  Entities."  FIN 46 requires a company to  consolidate  a
variable interest entity ("VIE") if the company has variable interests that give
it a majority  of the  expected  losses or a majority of the  expected  residual
returns of the entity.  FIN 46 is effective  immediately  for VIEs created after
January 31, 2003.  For VIEs created prior to February 1, 2003, FIN 46 will apply
in the first interim period or fiscal year beginning  after  September 15, 2003.
The implementation of FIN 46 has not had an impact on the Company's consolidated
balance sheets or consolidated statements of earnings.

                                       8
<PAGE>

In November  2002,  FASB issued FIN 45,  "Guarantor's  Accounting and Disclosure
Requirements for Guarantees,  Including  Indirect  Guarantees of Indebtedness of
Others,  an interpretation of FASB Statements Nos. 5, 57, and 107 and Rescission
of FIN 34." This Interpretation clarifies the requirements of FASB Statement No.
5, "Accounting for  Contingencies,"  relating to the guarantor's  accounting for
and  disclosure of the issuance of certain types of  guarantees.  The disclosure
provision of the Interpretation is effective for financial statements of interim
or annual reports that end after December 15, 2002. However,  the provisions for
initial  recognition and  measurement  are effective on a prospective  basis for
guarantees that are issued or modified after December 31, 2002,  irrespective of
the guarantor's year-end.  The application of this Interpretation did not have a
material  impact on the Company's  consolidated  balance  sheet or  consolidated
statement of earnings.

Item 2.  Management's  Discussion and Analysis of Financial Condition and
-------------------------------------------------------------------------
         Results of Operations
         ---------------------
General

The principal business of Long Island Financial Corp.  consists of the operation
of  a  wholly-owned  subsidiary,   Long  Island  Commercial  Bank.  Long  Island
Commercial Bank is a New York state-chartered  commercial bank, founded in 1989,
which  is  engaged  in  commercial  banking  in  Islandia,  New  York,  and  the
surrounding communities of Suffolk,  Nassau, and Kings counties. The Bank offers
a broad range of commercial and consumer  banking  services,  including loans to
and deposit accounts for small and medium-sized businesses,  professionals, high
net worth  individuals  and consumers.  The Bank is an  independent  local bank,
emphasizing personal attention and responsiveness to the needs of its customers.

Critical Accounting Policies

The Company identifies  accounting policies critical to the Company's operations
and  understanding of the Company's  results of operations.  Certain  accounting
policies  are  considered  to be important  to the  portrayal  of the  Company's
financial condition, since they require management to make complex or subjective
judgments, some of which may relate to matters that are inherently uncertain.

The Company has determined that the methodology used in determining the level of
its allowance for loan losses is critical in the presentation and  understanding
of the  Company's  consolidated  financial  statements.  The  allowance for loan
losses  represents  management's  estimate  of probable  losses  inherent in the
portfolio.  The  evaluation  process  for making  provisions  for loan losses is
subject to numerous  estimates and judgments.  Changes in those  estimates would
have a direct  impact on the  provision  for loan  losses and could  result in a
change  in  the  allowance.  While  management  uses  available  information  to
determine  losses on loans,  future  additions to the allowance may be necessary
based on,  among other  things,  unanticipated  changes in economic  conditions,
particularly in the counties of Suffolk and Nassau.

In  evaluating  the  portfolio,  management  takes into  consideration  numerous
factors such as the Company's loan growth,  prior loss  experience,  present and
potential  risks  of the  loan  portfolio,  risk  ratings  assigned  by  lending
personnel, ratings assigned by the independent loan review function, the present
financial  condition of the borrowers,  current economic  conditions,  and other
portfolio risk  characteristics.  The Company's formalized process for assessing
the adequacy of the allowance  for loan losses and the  resultant  need, if any,
for periodic  provisions  to the  allowance  charged to income  consists of both
individual  loan analyses and loan pool analyses.  The individual  loan analyses
are periodically  performed on individually  significant loans or when otherwise
deemed necessary and primarily  encompass  commercial real estate and commercial
and industrial loans.  Management believes that the Company's allowance for loan
losses at  September  30, 2003 is adequate  to provide  for  estimated  probable
losses inherent in the portfolio.

                                       9
<PAGE>

Financial Condition

The  Company's  total  assets  were $474.1  million as of  September  30,  2003,
compared to $492.0  million at December 31,  2002.  The decrease in total assets
was primarily  reflected in the decrease in cash and cash  equivalents  of $14.8
million from $25.8  million at December 31, 2002,  to $11.0 million at September
30, 2003,  primarily  reflecting the decrease of seasonal  municipal balances on
deposit at  September  30,  2003.  In addition to the  decrease in cash and cash
equivalents,  there  was a $14.1  million,  or 6.4%  decline  in the  securities
available-for-sale  portfolio,  as the  proceeds  of  maturing  short-term  U.S.
Government and agency obligations purchased in December,  2002, were used to pay
a portion of maturing seasonal municipal  deposits.  Offsetting those decreases,
loans,  net of unearned income and deferred fees,  increased $7.5 million,  from
$217.7  million at December 31, 2002,  to $225.2  million at September 30, 2003,
reflecting increases primarily in commercial real estate and automobile loans.

Total  deposits  decreased  $45.9  million,  or 11.5%,  from  $400.5  million at
December 31, 2002 to $354.6 million at September 30, 2003,  primarily reflecting
a decrease  in NOW and money  market  deposits.  The  decrease  in NOW and money
market deposits of $76.2 million,  or 58.4%, from $130.6 million at December 31,
2002 to $54.4 million at September 30, 2003, is  attributable  to the withdrawal
of  seasonal  municipal  deposits.  Time  certificates  in  excess  of  $100,000
decreased  $6.3 million,  or 30.8%,  from $20.5 million at December 31, 2002, to
$14.2  million at  September  30,  2003.  Other time  deposits  decreased  $10.8
million,  or 11.1%, from $96.9 million at December 31, 2002, to $86.1 million at
September 30, 2003. The effects of those declines were offset in part by a $25.7
million,  or 34.8%,  increase in savings deposits and a $21.8 million, or 27.7%,
increase in demand deposits. There were $18.0 million of federal funds purchased
at September 30, 2003. Other borrowings, which consist of Federal Home Loan Bank
of New York advances,  increased  $10.0 million,  or 18.2%,  to $65.0 million at
September 30, 2003.

Stockholders' equity increased $239,000,  or 1.0%, to $25.8 million at September
30,  2003  compared to $25.6  million at  December  31,  2002.  The  increase to
stockholders  equity  included  $2.4  million of net income for the nine  months
ending September 30, 2003, and a decrease in the accumulated other comprehensive
income on securities available-for-sale of $2.3 million.

Analysis of Net Interest Income

Net interest income represents the difference between income on interest-earning
assets and expense on interest-bearing  liabilities. Net interest income depends
upon the volume of interest-earning assets and interest-bearing  liabilities and
the interest rates earned or paid on them.

The  following  tables set forth certain  information  relating to the Company's
consolidated average balance sheets and its consolidated  statements of earnings
for the three and nine months ended September 30, 2003 and 2002, and reflect the
average yield on  interest-earning  assets and average cost of  interest-bearing
liabilities for the periods indicated.  Yields and costs are derived by dividing
annualized income or expense by the average balance of  interest-earning  assets
or interest-bearing liabilities, respectively. Average balances are derived from
average daily balances. Average loan balances include non-accrual loans although
the amount of non-accrual loans is not material.

                                       10
<PAGE>

<TABLE>

<S>                                           <C>            <C>        <C>           <C>          <C>       <C>
                                                              Three Months Ended September 30,
                                                              --------------------------------
                                                -----------2003-----------             -----------2002-----------
                                                                     Average                               Average
                                              Average                Yield /         Average               Yield /
                                              Balance    Interest     Cost           Balance    Interest    Cost
                                              -------    --------     ----           -------    --------    ----
Interest-earning assets:                                              (Dollars in thousands)
     Federal funds sold and
         interest-earning deposits      $      6,613   $      15       .91 %    $     8,632   $      37     1.71 %
     Securities (1)                          202,043       2,071      4.10          161,492       2,068     5.12
     Loans, net (2)                          217,488       3,762      6.92          194,286       3,688     7.59
                                             -------       -----                    -------       -----
         Total interest-earning assets       426,144       5,848      5.49          364,410       5,793     6.36
Non-interest-earning assets                   33,677                                 32,418
                                              ------                                 ------
Total assets                            $    459,821                            $   396,828
                                             =======                                =======

Interest-bearing liabilities:
     Savings deposits                   $     96,123         272      1.13      $    70,118         341     1.95
     NOW and money market deposits            56,515          96       .68           39,789         123     1.24
     Certificates of deposit                 106,554         852      3.20          124,437       1,150     3.70
                                             -------         ---                    -------       -----
         Total interest-bearing deposits     259,192       1,220      1.88          234,344       1,614     2.75
     Borrowed funds                           69,713         746      4.28           55,000         665     4.84
                                              ------         ---                     ------         ---
         Total interest-bearing liabilities  328,905       1,966      2.39          289,344       2,279     3.15
Other non-interest bearing liabilities       105,558                                 83,312
                                             -------                                 ------
Total liabilities                            434,463                                372,656
Stockholders' equity                          25,358                                 24,172
                                              ------                                 ------
Total liabilities and
     stockholders' equity               $    459,821                            $   396,828
                                             =======                                =======


Net interest income/
     interest rate spread (3)                          $   3,882      3.10 %                  $   3,514     3.21 %
                                                           =====      ====                        =====     ====

Net interest margin (4)                                               3.64 %                                3.86 %
                                                                      ====                                  ====

Ratio of interest-earning assets to
     interest-bearing liabilities                                    1.30x                                 1.26x
                                                                     =====                                 =====


(1)  Unrealized appreciation / depreciation on available-for-sale securities are
     recorded in non-interest earning assets.
(2)  Amount excludes  residential real estate loans  held-for-sale and allowance
     for loan losses, and includes deferred loan fees and non-accrual loans.
(3)  Interest  rate  spread  represents  the  difference  between  the  yield on
     interest-earning assets and the cost of interest-bearing liabilities.
(4)  Net  interest  margin  represents  net interest  income  divided by average
     interest-earning assets.
</TABLE>



                                       11
<PAGE>


<TABLE>

                                                              Nine Months Ended September 30,
                                                              -------------------------------
                                                -----------2003-----------            -----------2002-----------
<S>                                           <C>            <C>        <C>           <C>          <C>       <C>
                                                                     Average                               Average
                                              Average                Yield /         Average               Yield /
                                              Balance    Interest     Cost           Balance    Interest    Cost
                                              -------    --------     ----           -------    --------    ----
Interest-earning assets:                                              (Dollars in thousands)
     Federal funds sold and
         interest-earning deposits      $      8,249   $      65      1.05 %    $      7,524  $       95    1.68 %
     Securities (1)                          210,155       6,458      4.10           177,267       6,664    5.01
     Loans, net (2)                          215,966      11,355      7.01           188,521      10,710    7.57
                                             -------      ------                    --------      ------
         Total interest-earning assets       434,370      17,878      5.49           373,312      17,469    6.24
Non-interest-earning assets                   38,027                                  31,862
                                              ------                                  ------
Total assets                            $    472,397                            $    405,174
                                             =======                                 =======

Interest-bearing liabilities:
     Savings deposits                   $     89,109         849      1.27      $     58,921         742    1.68
     NOW and money market deposits            84,292         569       .90            61,764         536    1.16
     Certificates of deposit                 107,930       2,746      3.39           126,578       3,630    3.82
                                             -------       -----                     -------       -----
         Total interest-bearing deposits     281,331       4,164      1.97           247,263       4,908    2.65
     Borrowed funds                           67,601       2,144      4.23            56,757       1,999    4.70
                                              ------       -----                      ------       -----
         Total interest-bearing liabilities  348,932       6,308      2.41           304,020       6,907    3.03
Other non-interest bearing liabilities        97,732                                  78,213
                                              ------                                  ------
Total liabilities                            446,664                                 382,233
Stockholders' equity                          25,733                                  22,941
                                              ------                                  ------
Total liabilities and
     stockholders' equity               $    472,397                             $   405,174
                                             =======                                 =======


Net interest income/
     interest rate spread (3)                          $  11,570      3.08 %                  $   10,562    3.21 %
                                                          ======      ====                        ======    ====

Net interest margin (4)                                               3.55 %                                3.77 %
                                                                      ====                                  ====

Ratio of interest-earning assets to
     interest-bearing liabilities                                    1.24x                                  1.23x
                                                                     =====                                  =====


(1)  Unrealized appreciation / depreciation on available-for-sale securities are
     recorded in non-interest earning assets.
(2)  Amount excludes  residential real estate loans  held-for-sale and allowance
     for loan losses, and includes deferred loan fees and non-accrual loans.
(3)  Interest  rate  spread  represents  the  difference  between  the  yield on
     interest-earning assets and the cost of interest-bearing liabilities.
(4)  Net  interest  margin  represents  net interest  income  divided by average
     interest-earning assets.
</TABLE>



                                       12
<PAGE>



Comparison of Operating Results for the Three Months Ended September 30, 2003
and 2002

General

The Company reported net income of $794,000, or basic earnings per share of $.54
and diluted earnings per share of $.51 for the quarter ended September 30, 2003,
compared to $676,000,  or basic earnings per share of $.47 and diluted  earnings
per share of $.45 for the prior  year  period.  The  increase  in net income was
attributable  primarily to a $428,000,  or 12.4% increase in net interest income
after  provision  for loan losses and an increase in other  operating  income of
$290,000, or 34.3%. Offsetting those increases was a $513,000, or 15.7% increase
in other operating expenses.

Interest Income

Interest income increased $55,000,  or .9%, for the three months ended September
30, 2003,  compared to the three months ended  September 30, 2002. That increase
was attributable to the $61.7 million, or 16.9%, increase in the average balance
of  interest-earning  assets from  $364.4  million  for the three  months  ended
September 30, 2002, to $426.1  million for the three months ended  September 30,
2003.  That  increase in the income from the increase in the average  balance of
interest  earning  assets was offset in part by a 87 basis point decrease in the
average yield on  interest-earning  assets from 6.36% for the three months ended
September 30, 2002,  to 5.49% for the  comparable  2003 period.  The decrease in
average yield on  interest-earning  assets was attributable to a 102 basis point
decrease in yield on securities  which  declined from 5.12% for the three months
ended  September  30, 2002,  to 4.10% for the three months ended  September  30,
2003. The average yield on loans, net,  decreased 67 basis points from 7.59% for
the three months ended  September  30, 2002,  to 6.92% for the  comparable  2003
period.  Partially  offsetting  the decline in yield from period to period was a
$40.5  million,  or 25.1%  increase in the average  balance of  securities  from
$161.5 million for three months ended  September 30, 2002, to $202.0 million for
the three months ended  September 30, 2003. The average  balance of loans,  net,
increased $23.2 million, or 11.9% from $194.3 million for the three months ended
September 30, 2002, to $217.5 million for the comparable 2003 period.

Interest Expense

Interest expense for the three months ended September 30, 2003 was $2.0 million,
compared to $2.3  million for the three  months  ended  September  30,  2002,  a
decrease of $313,000,  or 13.7%.  The decrease  was  attributable  to a 76 basis
point decrease in the average cost of  interest-bearing  liabilities  from 3.15%
for the three  months  ended  September  30, 2002 to 2.39% for the three  months
ended September 30, 2003. The decrease in average cost was partially offset by a
$39.6   million,   or  13.7%,   increase  in  the   average   balance  of  total
interest-bearing  liabilities  from $289.3  million for the three  months  ended
September  30, 2002 to $328.9  million for the three months ended  September 30,
2003. The increase in average interest-bearing liabilities, when compared to the
prior year period, reflects increases of $24.8 million in the average balance of
interest-bearing  deposits and $14.7 million in the average  balance of borrowed
funds.

Interest expense on interest-bearing  deposits decreased $394,000, or 24.4%, for
the  three  months  ended   September  30,  2003,  from  $1.6  million  for  the
corresponding 2002 period to $1.2 million for the current period.  That decrease
was  primarily  due to a 87 basis point  decrease  in the  average  rate paid on
interest-bearing  deposits from 2.75% for three months ended  September 30, 2002
to 1.88% for the corresponding period in 2003. Offsetting, in part, the decrease
in  the  average   rate  paid  was  an  increase  in  the  average   balance  of
interest-bearing  deposits of $24.8 million for the three months ended September
30,  2003 from the  corresponding  period in 2002.  The  increase in the average
balance of interest-bearing  deposits was the result of increases in the average
balance of savings  deposits  of $26.0  million,  or 37.1%,  and in the  average
balances of NOW and money market deposits of $16.7 million, or 42.0% from period
to period.


                                       13
<PAGE>

Interest expense on borrowed funds increased  $81,000,  or 12.2%,  from $665,000
for the three months ended  September 30, 2002, to $746,000 for the three months
ended  September 30, 2003. The increase was primarily due to the average balance
of borrowed funds,  which increased $14.7 million,  or 26.8%, from $55.0 million
for the three months  ended  September  30, 2002 to $69.7  million for the three
months ended  September 30, 2003.  Offsetting in part the cost from the increase
in the  average  balance was a 56 basis  point  decrease in the average  cost of
borrowed funds from 4.84% for the 2002 period, to 4.28% for the 2003 period.

Net Interest Income

Net interest income increased by $368,000,  or 10.5%,  from $3.5 million for the
three months  ended  September  30,  2002,  to $3.9 million for the three months
ended September 30, 2003. The average cost of total interest-bearing liabilities
for the period  decreased 76 basis points from 3.15% in the 2002 period to 2.39%
in the 2003 period. The average yield on total  interest-earning  assets for the
period  decreased  87 basis points from 6.36% in the 2002 period to 5.49% in the
2003 period. The net interest rate spread decreased 11 basis points,  from 3.21%
for the three months  ended  September  30, 2002,  to 3.10% for the three months
ended September 30, 2003.

Provision for Loan Losses

The  Company  made no  provision  for loan  losses  for the three  months  ended
September 30, 2003, compared to a $60,000 provision for loan losses made for the
three months ended September 30, 2002. The determination not to make a provision
for  loan  losses  for the  three  months  ended  September  30,  2003  reflects
management's  qualitative and quantitative assessment of the loan portfolio, net
charge-offs  and collection of delinquent  loans.  The allowance for loan losses
amounted to $2.4 million and $2.3 million at September 30, 2003 and December 31,
2002,  respectively.  The allowance for loan losses as a percentage of loans was
1.06% and 1.08% at September 30, 2003 and December 31, 2002, respectively.

The following table sets forth information regarding non-accrual loans and loans
delinquent 90 days or more and still accruing  interest at the dates  indicated.
It is the  Company's  general  policy to  discontinue  accruing  interest on all
loans,  which  are  past-due  more  than 90  days or  when,  in the  opinion  of
management,  such suspension is warranted.  When a loan is placed on non-accrual
status,  the Company ceases the accrual of interest owed and previously  accrued
interest is charged against  interest  income.  Loans are generally  returned to
accrual  status when  principal  and interest  payments  are  current,  there is
reasonable  assurance that the loan is fully collectable and a consistent record
of performance has been demonstrated.

<TABLE>
<S>                                                                <C>                    <C>
                                                              September 30, 2003       December 31, 2002
                                                              ------------------       -----------------
                                                                          (Dollars in thousands)
Non-accrual loans:
     Commercial and industrial loans                               $       84             $    307
                                                                           --                  ---
         Total non-accrual loans                                           84                  307
                                                                           --                  ---


Allowance for loan losses as a percentage
     of loans (1)                                                        1.06 %               1.08 %
Allowance for loan losses as a percentage
     of total non-accrual loans                                      2,835.71 %             764.17 %
Non-accrual loans as a percentage of loans (1)                            .04 %                .14 %

(1) Loans include loans, net, excluding the allowance for loan losses.
</TABLE>


                                       14
<PAGE>

Other Operating Income

Other operating  income  increased  $290,000,  or 34.3%, to $1.1 million for the
three months  ended  September  30, 2003,  as compared to the three months ended
September 30, 2002.  That increase was made up primarily from service charges on
deposit accounts,  which increased $105,000, or 23.6%, reflecting overall growth
in the depositor base, and the introduction of new electronic  banking services.
In addition,  the Company  realized a gain on the sale of securities of $158,000
for the three months ended  September 30, 2003.  There was no comparable gain on
sale in the three months ended September 30, 2002.

Other Operating Expenses

Other operating expenses increased $513,000, or 15.7%, from $3.3 million for the
three months  ended  September  30,  2002,  to $3.8 million for the three months
ended September 30, 2003. The increase over the prior period resulted  primarily
from  increases  in salaries  and  employee  benefits,  premises  and  equipment
expense, and other expense attributable to the Bank's branch expansion.

Income Taxes

Income taxes  increased  $87,000,  or 24.6%,  from $353,000 for the three months
ended  September 30, 2002, to $440,000 for the three months ended  September 30,
2003, as a result of an increase in income  before  income taxes.  The effective
tax  rates  for the three  months  ended  September  30,  2003 and  those  ended
September 30, 2002 were 35.7% and 34.3%, respectively.

Comparison of Operating Results for the Nine Months Ended September 30, 2003 and
2002

General

The Company reported net income of $2.4 million,  or basic earnings per share of
$1.62  and  diluted  earnings  per  share of $1.54  for the  nine  months  ended
September  30, 2003,  compared to $2.2 million,  or basic  earnings per share of
$1.52 and diluted  earnings per share of $1.47,  for the prior year period.  The
increase in net income was  attributable  primarily to a $1.2 million,  or 11.2%
increase in net interest  income after provision for loan losses and an increase
in other operating income of $713,000, or 29.3%.  Offsetting those increases, in
part, was a $1.5 million, or 16.1% increase in other operating expenses.

Interest Income

Interest income increased $409,000, or 2.3%, for the nine months ended September
30, 2003,  compared to the nine months ended  September 30, 2002.  This increase
was  attributable  to the  increase in the average  balance of  interest-earning
assets of $61.1 million, or 16.4%, from $373.3 million for the nine months ended
September  30, 2002, to $434.4  million for the nine months ended  September 30,
2003. The increase in the average balance of interest  earning assets was offset
in part by a 75 basis point  decrease in the average  yield on  interest-earning
assets from 6.24% for the nine months ended September 30, 2002, to 5.49% for the
comparable 2003 period. The decrease in average yield on interest-earning assets
was  attributable  to a 91 basis  point  decrease in yield on  securities  which
declined  from 5.01% for the nine months ended  September 30, 2002, to 4.10% for
the nine months ended September 30, 2003, and the decrease of 56 basis points in
the average yield on loans,  net, from 7.57% for the nine months ended September
30, 2002, to 7.01% for the  comparable  2003 period.  Partially  offsetting  the
decline in yield from period to period was a $32.9 million, or 18.6% increase in
the average  balance of securities from $177.3 million for the nine months ended
September  30, 2002, to $210.2  million for the nine months ended  September 30,
2003. The average balance of loans, net, increased $27.5 million,  or 14.6% from
$188.5  million for the nine months ended  September 30, 2002, to $216.0 million
for the current nine-month period.

                                       15
<PAGE>

Interest Expense

Interest  expense for the nine months ended September 30, 2003 was $6.3 million,
compared  to $6.9  million for the nine  months  ended  September  30,  2002,  a
decrease of $599,000, or 8.7%. The decrease was attributable to a 62 basis point
decrease in the average cost of interest-bearing  liabilities from 3.03% for the
nine  months  ended  September  30,  2002 to  2.41%  for the nine  months  ended
September  30, 2003.  The decrease in average cost was  partially  offset by the
cost of a $44.9  million,  or 14.8%,  increase in the  average  balance of total
interest-bearing  liabilities  from $304.0  million  for the nine  months  ended
September  30, 2002 to $348.9  million for the nine months ended  September  30,
2003. The increase in average interest-bearing liabilities reflects increases of
$34.1  million in the average  balance of  interest-bearing  deposits  and $10.8
million in the average balance of borrowed funds when compared to the prior year
period.

Interest  expense  on  interest-bearing  deposits  for  the  nine  months  ended
September  30, 2003  decreased  $744,000,  or 15.2%,  to $4.2  million from $4.9
million for the corresponding 2002 period.  That decrease was primarily due to a
68 basis point  decrease in the average rate paid on  interest-bearing  deposits
from  2.65%  for  nine  months  ended  September  30,  2002  to  1.97%  for  the
corresponding  period in 2003.  Offsetting the decrease in the average rate paid
was the  cost  from an  increase  in the  average  balance  of  interest-bearing
deposits of $34.1 million for the nine months ended  September 30, 2003 from the
corresponding   period  in  2002.  The  increase  in  the  average   balance  of
interest-bearing  deposits was the result of increases in the average balance of
savings deposits of $30.2 million,  or 51.2%, and in the average balances of NOW
and money market deposits of $22.5 million, or 36.5% from period to period.

Interest  expense on  borrowed  funds  increased  $145,000,  or 7.3%,  from $2.0
million for the nine months ended  September  30, 2002,  to $2.1 million for the
nine months ended  September  30, 2003.  The increase was  primarily  due to the
average balance of borrowed funds, which increased $10.8 million, or 19.1%, from
$56.8 million for the nine months ended  September 30, 2002 to $67.6 million for
the nine months ended September 30, 2003.  Offsetting the cost from the increase
in the  average  balance was a 47 basis  point  decrease in the average  cost of
borrowed funds from 4.70% for the 2002 period, to 4.23% for the 2003 period.

Net Interest Income

Net interest income  increased by $1.0 million,  or 9.5%, from $10.6 million for
the nine months ended  September  30, 2002, to $11.6 million for the nine months
ended September 30, 2003. The average cost of total interest-bearing liabilities
for the period  decreased 62 basis points from 3.03% in the 2002 period to 2.41%
in the 2003 period. The average yield on total  interest-earning  assets for the
period  decreased  75 basis points from 6.24% in the 2002 period to 5.49% in the
2003 period. The net interest rate spread decreased 13 basis points,  from 3.21%
for the nine months ended September 30, 2002, to 3.08% for the nine months ended
September 30, 2003.

Provision for Loan Losses

The Company made a $60,000  provision  for loan losses for the nine months ended
September  30, 2003,  compared to a $210,000  provision  for loan losses for the
nine months ended  September 30, 2002. The provision for loan losses is based on
analysis of the loan  portfolio  and reflects an amount,  which in  management's
judgment  is  adequate  to provide  for  probable  loan  losses in the  existing
portfolio.

Other Operating Income

Other operating  income  increased  $713,000,  or 29.3%, to $3.1 million for the
nine months ended September 30, 2003. The Company  realized gains on the sale of
securities of $400,000 for the nine months ended  September 30, 2003.  There had
been no comparable gain in the year earlier period. In addition, service charges
on deposit accounts increased $243,000,  or 18.9%,  reflecting overall growth in
the depositor base, and the introduction of new electronic banking services.

                                       16
<PAGE>

Other Operating Expenses

Other operating expenses increased $1.5 million, or 16.1%, from $9.4 million for
the nine months ended  September  30, 2002, to $10.9 million for the nine months
ended  September 30, 2003.  The increase  resulted  primarily  from increases in
salaries  and  employee  benefits,  premises and  equipment  expense,  and other
expense for the nine months ended September 30, 2003  attributable to the Bank's
branch expansion.

Income Taxes

Income taxes increased $172,000, or 15.0%, from $1.1 million for the nine months
ended  September 30, 2002,  to $1.3 million for the nine months ended  September
30,  2003,  as a result of the  increase  in income  before  income  taxes.  The
effective  tax rates for the nine months  ended  September  30, 2003 and for the
nine months ended September 30, 2002 were 35.7% and 34.4%, respectively.


Liquidity

Liquidity management for the Company requires that funds be available to pay all
deposit  withdrawal and maturing  financial  obligations and meet credit funding
requirements  promptly and fully in accordance with their terms. For most banks,
including the Bank,  maturing assets provide only a limited portion of the funds
required to pay maturing liabilities over a short time frame. The balance of the
funds  required is provided by liquid assets and the  acquisition  of additional
liabilities, making liability management integral to liquidity management in the
short term.

The Company's  liquid assets  consist of cash and due from banks,  federal funds
sold, interest-earning deposits with other financial institutions and securities
classified as  available-for-sale,  less securities  pledged as collateral.  The
Company has  established a minimum  liquidity  level,  average  liquid assets to
average  assets,  at 10%.  Average  balances  are  derived  from  average  daily
balances. During the nine months ended September 30, 2003, the Company's average
minimum liquidity level was 22.9%.

The Company maintains levels of liquidity that it considers adequate to meet its
current  needs.  The  Company's  principal  sources  of  cash  include  incoming
deposits, the repayment of loans and sales of investment  securities.  When cash
requirements  increase faster than cash is generated,  either through  increased
loan demand or  withdrawal of deposited  funds,  the Company can arrange for the
sale of loans or liquidate available-for-sale securities. It can also access its
lines  of  credit,   totaling  $7.5   million,   with   unaffiliated   financial
institutions,  which enable it to borrow federal funds on an unsecured basis. In
addition,  the Company has available  lines of credit with the Federal Home Loan
Bank of New York (FHLB) equal to 10.6% of the Company's  assets at September 30,
2003, which enable it to borrow funds on a secured basis. The Company could also
engage in other forms of borrowings, including reverse repurchase agreements.

At September 30, 2003, the Company's  borrowings  consisted of  convertible  and
medium term advances from the FHLB.  The  convertible  feature of these advances
allows the FHLB, at a specified call date and quarterly  thereafter,  to convert
those  advances  into  replacement  funding  for the same or a lesser  principal
amount,  based on any advance then offered by the FHLB,  at then current  market
rates.  If the FHLB  elects to convert  those  advances,  the Bank may repay any
portion of the advances without penalty. The convertible advances are secured by
various mortgage-backed, callable U.S. agency securities, and certain qualifying
commercial real estate loans.


                                       17
<PAGE>

At September 30, 2003, convertible and medium term advances outstanding were as
follows:
<TABLE>
<S>                                      <C>                <C>                <C>                   <C>
                                                                               Call                Contractual
                                        Amount              Rate               Date                 Maturity
                                        ------              ----               ----                 --------
    Convertible advance          $     14,000,000           5.49  %          11/19/2003             2/19/2008
    Convertible advance                15,000,000           4.59             10/21/2003             1/21/2009
    Convertible advance                14,000,000           4.97              1/20/2004             1/19/2011
    Convertible advance                 3,000,000           4.11             12/11/2005            12/12/2011
    Convertible advance                10,000,000           2.64              5/28/2008             5/28/2013
    Medium term advance                 4,000,000           3.31             12/11/2003            12/11/2003
    Medium term advance                 5,000,000           3.99             12/13/2004            12/13/2004
                                        ---------
                  Total          $     65,000,000
</TABLE>

The primary  investing  activities of the Company are the purchase of securities
available-for-sale  and the origination of loans. During each of the nine months
ended  September 30, 2003, and 2002, the Company's  purchases of securities that
were  classified  available-for-sale  totaled $565.1 million and $644.8 million,
respectively.  Loan originations,  net of principal repayments on loans, totaled
$5.9 million and $20.7 million for the nine months ended September 30, 2003, and
2002,   respectively.   Borrowings,   principal  repayments  and  maturities  of
securities were used primarily to fund those activities.

Capital Resources

The Bank is subject to the risk based  capital  guidelines  administered  by the
banking  regulatory  agencies.  The  guidelines  currently  require all banks to
maintain  a minimum  ratio of total risk  based  capital to total risk  weighted
assets of 8%, including a minimum ratio of Tier 1 capital to total risk weighted
assets of 4% and a Tier 1 capital to average  adjusted  assets of 4%. Failure to
meet minimum capital  requirements can initiate certain mandatory,  and possibly
additional  discretionary,  actions  by the FDIC,  the  Bank's  primary  federal
regulator that, if undertaken, could have a direct material effect on the Bank's
financial statements. As of December 31, 2002, the most recent notification from
the FDIC categorized the Bank as well capitalized under the regulatory framework
for prompt corrective action.

In accordance  with the  requirements of the FDIC and the New York State Banking
Department, the Bank must meet certain measures of capital adequacy with respect
to leverage and risk-based  capital. As of September 30, 2003, the Bank exceeded
those  requirements with a leverage capital ratio,  risk-based capital ratio and
total-risk based capital ratio of 6.21%, 9.88%, and 10.70%, respectively.

The Company achieves what it considers "capital adequacy" through the continuous
monitoring of its financial performance and plans for expansion.  Sources of the
Company's  capital are generated  primarily  through current period earnings and
the issuance of common stock via the dividend  reinvestment plan or the exercise
of stock options. Uses of capital currently result from the payment of dividends
on common stock or the  repurchase  of common stock  through a stock  repurchase
program.  In February 2003, the Board of Directors,  suspended the current stock
repurchase  program that had enabled the Company to repurchase  75,000 shares of
its  outstanding  common stock.  There have been no repurchases  made under that
stock purchase  program since its  announcement in May, 2001. In determining the
extent  and timing of stock  repurchase  programs,  the  Company  considers,  in
addition to capital adequacy,  the effect on the Company's financial  condition,
average daily trading volume, and listing requirements  applicable to the NASDAQ
National  Market System.  At September 30, 2003, the Company held 336,900 shares
of treasury stock at an average cost of $12.40 per share.


                                       18
<PAGE>

Item 3.  Quantitative and Qualitative Disclosures About Market Risk
-------  ----------------------------------------------------------

The principal objective of the Company's interest rate management is to evaluate
the interest rate risk inherent in certain balance sheet accounts, determine the
level of risk  appropriate  given the  Company's  business  strategy,  operating
environment,  capital and liquidity requirements and performance objectives, and
manage the risk consistent  with guidelines  approved by the Board of Directors.
Through such  management,  the Company seeks to reduce the  vulnerability of its
operations to changes in interest  rates.  The Board has directed the Investment
Committee to review the  Company's  interest  rate risk  position on a quarterly
basis.

Funds  management  is the  process by which the Company  seeks to  maximize  the
profit  potential  which is derived from the spread  between the rates earned on
interest-earning  assets  and the  rates  paid on  interest-bearing  liabilities
through  the  management  of  various  balance  sheet  components.  It  involves
virtually every aspect of the Company's management and decision-making  process.
Accordingly,  the Company's  results of operations  and financial  condition are
largely  dependent on the movements in market  interest  rates and the Company's
ability to manage its assets and liabilities in response to such movements.

At  September  30,  2003,  74.3% of the  Company's  gross  loans had  adjustable
interest  rates and its loan portfolio had an average  weighted  maturity of 8.8
years. At that date,  $53.0 million,  or 23.8%, of the Company's  securities had
adjustable  interest rates, and its securities  portfolio had a weighted average
maturity of 1.9 years.  At September 30, 2003,  the Company had $59.2 million of
certificates of deposit with maturities of one year or less and $14.2 million of
deposits  over  $100,000,  which tend to be less stable  sources of funding when
compared  to  core  deposits,  and  which  represented  21.8%  of the  Company's
interest-bearing   liabilities.  In  a  rising  interest  rate  environment  the
Company's interest-bearing liabilities may adjust upwardly more rapidly than the
yield on its adjustable-rate assets. Thus, due to the Company's level of shorter
term  certificates  of deposit,  the  Company's  cost of funds may increase at a
greater  rate in a rising rate  environment  than if it had a greater  amount of
core deposits which,  in turn, may adversely  affect net interest income and net
income.

The Company's  interest rate sensitivity is monitored by management  through the
use of a quarterly  interest  rate risk analysis  model which  evaluates (i) the
potential  change in the net interest  income over the  succeeding  four quarter
period and (ii) the potential change in the fair market value of equity,  of the
Company  ("Net  Economic   Value  of  Equity"),   which  would  result  from  an
instantaneous  and sustained  interest rate change of zero and plus or minus 200
basis points in 100 basis point increments.

At September 30, 2003, the effect of instantaneous  and sustained  interest rate
changes on the  Company's Net Interest  Income and Net Economic  Value of Equity
are as follows:
<TABLE>

<S>             <C>                  <C>                 <C>                       <C>             <C>
             Change in                   Potential Change in                       Potential Change in
           Interest Rates                Net Interest Income                  Net Economic Value of Equity
           in Basis Points             $ Change      % Change                  $ Change          % Change
           ---------------             --------      --------                  ---------         --------
                                                                     (Dollars in thousands)

                200                 $   (134)            (.77) %               $ (6,131)            (22.90) %
                100                      291             1.68                    (3,053)            (14.48)
              Static                      --              --                         --                 --
               (100)                    (944)           (5.46)                       50                .17
               (200)                  (2,450)          (14.17)                      714               2.47

</TABLE>

                                       19
<PAGE>

Item 4.  Controls and Procedures
-------  -----------------------

     1.   Evaluation  of  disclosure   controls  and  procedures.   The  Company
          maintains controls and procedures  designed to ensure that information
          required  to be  disclosed  in the reports  that the Company  files or
          submits  under  the  Securities  Exchange  Act of  1934  is  recorded,
          processed,  summarized and reported within the time periods  specified
          in the rules  and forms of the  Securities  and  Exchange  Commission.
          Based upon their evaluation of those controls and procedures as of the
          end of the period  covered by the report,  based on the  evaluation of
          these  controls and  procedures  required by paragraph  (b) of Section
          240.13a-15 or Section 240.15d-15 of this chapter,  the Chief Executive
          and  Chief  Financial  officers  of the  Company  concluded  that  the
          Company's disclosure controls and procedures were adequate.

     2.   Changes in internal controls.  The Company made no significant changes
          in its internal controls or in other factors that could  significantly
          affect these  controls  subsequent  to the date of the  evaluation  of
          those controls by the Chief Executive and Chief Financial officers.

PART II - OTHER INFORMATION
---------------------------

Item 1.  Legal Proceedings
-------  -----------------
         Not applicable.

Item 2.  Changes in Securities and Use of Proceeds
-------  -----------------------------------------
         Not applicable.

Item 3.  Defaults Upon Senior Securities
-------  -------------------------------
         Not applicable.

Item 4.  Submission of Matters to a Vote of Security Holders
-------  ---------------------------------------------------
         Not applicable.

Item 5.  Other Information
-------  -----------------
         Not applicable.

Item 6.  Exhibits and Reports on Form 8-K
-------  --------------------------------
         a.    Exhibits
               --------

               11.0 Statement Re: Computation of Per Share Earnings

               31.1 Certification of Chief Executive Officer pursuant to Section
                    302 of Sarbanes- Oxley Act of 2002

               31.2 Certification of Chief Financial Officer pursuant to Section
                    302 of Sarbanes- Oxley Act of 2002

               32.1 Certification of Chief Executive Officer pursuant to Section
                    906 of Sarbanes- Oxley Act of 2002

               32.2 Certification of Chief Financial Officer pursuant to Section
                    906 of Sarbanes- Oxley Act of 2002

         b.    Reports on Form 8-K
               -------------------
               On July 16,  2003 the Company  filed a Form 8-K to disclose  that
               the Company has issued a press  release to announce the Company's
               second quarter earnings and payment of a dividend.



                                       20
<PAGE>



                                   SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the
registrant has duly caused this report to be signed on behalf of the undersigned
thereunto duly authorized.



                                 LONG ISLAND FINANCIAL CORP.
                                 (Registrant)


Date:    November 14, 2003       By: /s/ Douglas C. Manditch
                                     -----------------------
                                         Douglas C. Manditch
                                         President and Chief Executive Officer


Date:    November 14, 2003       By: /s/ Thomas Buonaiuto
                                     --------------------
                                         Thomas Buonaiuto
                                         Vice President and Treasurer



                                       21
<PAGE>