<PAGE>


                       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 June 30, 2005
                                       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)


   1601 Veterans Memorial Highway, Suite 120
            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 1,543,724 shares of
Common Stock outstanding as of August 12, 2005.


<PAGE>
<TABLE>
<CAPTION>


                                                    FORM 10-Q
                                           LONG ISLAND FINANCIAL CORP.

                                                      INDEX
                                                                                                        PAGE
PART I - FINANCIAL INFORMATION                                                                         NUMBER
------------------------------                                                                         ------

<S>           <C>                                                                                        <C>
ITEM 1.       Financial Statements

              Consolidated Balance Sheets at June 30, 2005
                    and December 31, 2004                                                                 2
              Consolidated Statements of Earnings for the Three Months and
                    Six Months Ended June 30, 2005 and 2004                                               3
              Consolidated Statement of Changes in Stockholders' Equity
                    and Other Comprehensive Loss for the Six Months
                         Ended June 30, 2005                                                              4
              Consolidated Statements of Cash Flows for the Six Months
                    Ended June 30, 2005 and 2004                                                          5
              Notes to Consolidated Financial Statements                                                  6

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

ITEM 3.       Quantitative and Qualitative Disclosures About Market Risk                                 22

ITEM 4.       Controls and Procedures                                                                    23


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

ITEM 1.       Legal Proceedings                                                                          23

ITEM 2.       Unregistered Sales of Equity Securities and Use of Proceeds                                23

ITEM 3.       Defaults Upon Senior Securities                                                            23

ITEM 4.       Submission of Matters to a Vote of Security Holders                                        24

ITEM 5.       Other Information                                                                          24

ITEM 6.       Exhibits                                                                                   24

SIGNATURES                                                                                               25

</TABLE>



                                       1
<PAGE>
<TABLE>
<CAPTION>


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

ITEM 1.       FINANCIAL STATEMENTS
-------       --------------------

                                           LONG ISLAND FINANCIAL CORP.
                                           CONSOLIDATED BALANCE SHEETS
                                       (IN THOUSANDS, EXCEPT SHARE DATA)
                                                                                    JUNE 30,           DECEMBER 31,
                                                                                      2005                 2004
                                                                                      ----                 ----
                                                                                   (UNAUDITED)
<S>                                                                                <C>                 <C>
ASSETS:
Cash and due from banks                                                            $   11,539          $  10,310
Interest earning deposits                                                               1,441                 37
                                                                                   ----------          ---------
              Total cash and cash equivalents                                          12,980             10,347
Securities available-for-sale, at fair value                                          255,545            278,814
Federal Home Loan Bank stock, at cost                                                   4,200              4,925
Loans, held for sale                                                                      838                604
Loans, net of unearned income and deferred fees                                       249,125            243,477
Less allowance for loan losses                                                         (4,066)            (5,591)
                                                                                   ----------          ---------
              Loans, net                                                              245,059            237,886
Premises and equipment, net                                                             5,220              5,422
Accrued interest receivable                                                             3,203              3,342
Bank owned life insurance                                                               7,924              7,779
Deferred tax asset, net                                                                 2,896              3,169
Prepaid expenses and other assets                                                       1,814              2,521
                                                                                   ----------          ---------
              Total assets                                                         $  539,679          $ 554,809
                                                                                   ----------          ---------
LIABILITIES AND STOCKHOLDERS' EQUITY:
Deposits:
    Demand deposits                                                                $  112,424          $  99,876
    Savings deposits                                                                  118,786            123,142
    NOW and money market deposits                                                     106,400            126,509
    Time deposits, $100,000 or more                                                    15,272              9,863
    Other time deposits                                                                62,974             58,905
                                                                                   ----------          ---------
              Total deposits                                                          415,856            418,295
Federal funds purchased and securities sold under agreements to repurchase             13,000             27,500
Other borrowings                                                                       71,000             71,000
Subordinated debentures                                                                 7,732              7,732
Accrued expenses and other liabilities                                                  3,584              3,245
                                                                                   ----------          ---------
              Total liabilities                                                       511,172            527,772
                                                                                   ----------          ---------
Stockholders' equity:
    Common stock (par value $.01 per share; 10,000,000 shares authorized;
      1,878,792 and 1,850,378 shares issued; 1,541,892 and
      1,513,478 shares outstanding, respectively)                                          19                 19
    Surplus                                                                            22,165             21,590
    Retained earnings                                                                  12,716             11,417
    Accumulated other comprehensive loss                                               (2,215)            (1,811)
    Treasury stock at cost, (336,900 shares)                                           (4,178)            (4,178)
                                                                                   ----------          ---------
              Total stockholders' equity                                               28,507             27,037
                                                                                   ----------          ---------
              Total liabilities and stockholders' equity                           $  539,679          $ 554,809
                                                                                   ----------          ---------
</TABLE>

See accompanying notes to consolidated financial statements.


                                       2
<PAGE>
<TABLE>
<CAPTION>


                                   LONG ISLAND FINANCIAL CORP.
                               CONSOLIDATED STATEMENTS OF EARNINGS
                                           (UNAUDITED)
                                (IN THOUSANDS, EXCEPT SHARE DATA)

                                                        FOR THE THREE MONTHS            FOR THE SIX MONTHS
                                                            ENDED JUNE 30,                ENDED JUNE 30,
                                                            --------------                --------------
                                                           2005         2004              2005        2004
                                                           ----         ----              ----        ----
<S>                                                  <C>           <C>               <C>         <C>
Interest income:
     Loans                                           $    4,070    $    3,871        $    8,021  $    7,671
     Securities                                           2,838         2,757             5,775       5,304
     Federal funds sold and earning deposits                 62             3                72           5
                                                     ----------    ----------        ----------  ----------
         Total interest income                            6,970         6,631            13,868      12,980
                                                     ----------    ----------        ----------  ----------
Interest expense:
     Savings deposits                                       490           272               911         563
     NOW and money market deposits                          579           223             1,013         459
     Time deposits, $100,000 or more                        101            60               171         129
     Other time deposits                                    551           593             1,058       1,241
     Borrowed funds                                         839           871             1,760       1,637
     Subordinated debentures                                209           206               415         413
                                                     ----------    ----------        ----------  ----------
         Total interest expense                           2,769         2,225             5,328       4,442
                                                     ----------    ----------        ----------  ----------

     Net interest income                                  4,201         4,406             8,540       8,538
                                                     ----------    ----------        ----------  ----------
Provision for loan losses                                    50         5,000               125       5,500
                                                     ----------    ----------        ----------  ----------
     Net interest income (expense) after provision
        for loan losses                                   4,151          (594)            8,415       3,038
                                                     ----------    ----------        ----------  ----------
Other operating income:
     Service charges on deposit accounts                    706           618             1,344       1,270
     Net gain on sales and calls of securities                -         2,483                 -       2,880
     Net gain on sale of residential loans                  147           204               283         396
     Earnings on bank-owned life insurance                   91           100               180         395
     Other                                                  226           128               391         263
                                                     ----------    ----------        ----------  ----------
         Total other operating income                     1,170         3,533             2,198       5,204
                                                     ----------    ----------        ----------  ----------

Other operating expenses:
     Salaries and employee benefits                       2,158         1,870             4,252       4,001
     Occupancy expense                                      342           314               684         629
     Premises and equipment expense                         377           379               720         766
     Automobile loan expense                                131           798               254         855
     Other                                                1,063         1,067             2,113       2,160
                                                     ----------    ----------        ----------  ----------
         Total other operating expenses                   4,071         4,428             8,023       8,411
                                                     ----------    ----------        ----------  ----------

         Income (loss) before income taxes                1,250        (1,489)            2,590        (169)

Income taxes (benefit)                                      443          (592)              923        (193)
                                                     ----------    ----------        ----------  ----------
         Net income (loss)                           $      807    $     (897)       $    1,667  $       24
                                                     ----------    ----------        ----------  ----------

Basic earnings (loss) per share                      $      .53    $     (.60)       $     1.09  $      .02
                                                     ----------    ----------        ----------  ----------
Diluted earnings (loss) per share                    $      .51    $     (.56)       $     1.05  $      .02
                                                     ----------    ----------        ----------  ----------
Weighted average shares outstanding                   1,533,004     1,503,606         1,527,443   1,501,067
                                                     ----------    ----------        ----------  ----------
Diluted weighted average shares outstanding           1,592,957     1,588,510         1,590,321   1,585,710
                                                     ----------    ----------        ----------  ----------
Comprehensive income (loss)                          $    3,521    $   (7,401)       $    1,263  $   (3,870)
                                                     ----------    ----------        ----------  ----------
</TABLE>

See accompanying notes to consolidated financial statements.

                                       3

<PAGE>
<TABLE>
<CAPTION>

                                   LONG ISLAND FINANCIAL CORP.
                    CONSOLIDATED STATEMENT OF CHANGES IN STOCKHOLDERS' EQUITY
                                  AND OTHER COMPREHENSIVE LOSS
                             FOR THE SIX MONTHS ENDED JUNE 30, 2005
                                           (UNAUDITED)

                               (IN THOUSANDS, EXCEPT SHARE DATA)

                                                                                  ACCUMULATED
                                                                                    OTHER
                                            COMMON                  RETAINED     COMPREHENSIVE    TREASURY
                                             STOCK       SURPLUS    EARNINGS         LOSS          STOCK      TOTAL
                                           -------------------------------------------------------------------------

<S>                                        <C>        <C>         <C>            <C>           <C>         <C>
Balance at December 31, 2004               $   19     $  21,590   $   11,417     $ (1,811)     $  (4,178)  $ 27,037

Comprehensive income:
    Net income                                  -             -        1,667            -              -      1,667
      Other comprehensive income,
        net of tax:
         Unrealized depreciation in
         available-for-sale securities,
         net of reclassification adjustment     -             -            -         (404)             -       (404)
                                                                                                           ---------
Total comprehensive income                                                                                    1,263

Exercise of stock options and related
     tax benefit, issued 25,530 shares          -           464            -            -              -        464

Dividend reinvestment and stock purchase
     plan, issued 2,884 shares                  -           111            -            -              -        111

Dividends declared on common stock
     ($.24 per common share)                    -             -         (368)           -              -       (368)
                                           -------------------------------------------------------------------------

Balance at June 30, 2005                   $   19     $  22,165    $  12,716     $ (2,215)     $  (4,178)  $ 28,507
                                           -------------------------------------------------------------------------
</TABLE>

<TABLE>
<CAPTION>

                                                                    SIX MONTHS ENDED JUNE 30,
                                                                    -------------------------
                                                                        2005         2004
                                                                        ----         ----
(IN THOUSANDS)
<S>                                                                  <C>          <C>
Net unrealized depreciation
  arising during the year, net of tax                                $   (404)    $ (2,080)
Less: Reclassification adjustment for net
  gains included in net income, net of tax                                  -        1,814
                                                                     ----------------------
Net unrealized loss on securities, net of tax                        $   (404)    $ (3,894)
                                                                     ----------------------
</TABLE>

See accompanying notes to consolidated financial statements.

                                       4


<PAGE>
<TABLE>
<CAPTION>


                                           LONG ISLAND FINANCIAL CORP.
                                      CONSOLIDATED STATEMENTS OF CASH FLOWS
                                                   (UNAUDITED)
                                                                                                FOR THE SIX MONTHS
                                                                                                  ENDED JUNE 30,
(IN THOUSANDS)                                                                                   2005          2004
                                                                                                 ----          ----
<S>                                                                                         <C>           <C>
Cash flows from operating activities:
    Net income                                                                              $   1,667     $      24
    Adjustments to reconcile net income to net cash provided by operating activities:
     Provision for loan losses                                                                    125         5,500
     Depreciation and amortization                                                                481           549
     Amortization of premiums, net of discount accretion                                           55           137
     Net gain on sales and calls of securities, held-to-maturity                                    -          (335)
     Net gain on sales and calls of securities, available-for-sale                                  -        (2,545)
     Loans originated for sale, net of proceeds from sales and gains                             (234)        1,103
     Net deferred loan origination fees                                                            20            53
     Earnings on bank owned life insurance                                                       (180)         (203)
     Bank owned life insurance benefit                                                              -          (192)
     Deferred income taxes                                                                        543        (1,653)
     Change in other assets and liabilities:
         Accrued interest receivable                                                              139          (761)
         Prepaid expenses and other assets                                                        742          (362)
         Accrued expenses and other liabilities                                                   339          (625)
                                                                                            ---------     ---------
         Net cash provided by operating activities                                              3,697           690
                                                                                            ---------     ---------
Cash flows from investing activities:
     Purchases of securities available-for-sale                                              (134,959)     (577,725)
     Net purchases (redemptions) of Federal Home Loan Bank stock                                  725        (3,750)
     Proceeds from sales of securities held-to-maturity                                             -         1,347
     Proceeds from sales of securities available-for-sale                                      15,000        58,187
     Proceeds from maturities and calls of securities available-for-sale                      139,000       467,157
     Principal repayments on securities available for sale                                      3,499         7,286
     Loan originations, net of principal repayments                                            (7,318)      (14,143)
     Redemption of bank owned life insurance, net                                                   -           922
     Purchase of premises and equipment                                                          (279)         (503)
                                                                                            ---------     ---------
         Net cash provided by (used in) investing activities                                   15,668       (61,222)
                                                                                            ---------     ---------
Cash flows from financing activities:
     Net decrease in demand deposit, savings, NOW, and money market deposits                  (12,352)      (45,739)
     Net increase (decrease) in time deposits                                                   9,913       (13,880)
     Net (decrease) increase in federal funds purchased                                       (14,500)       69,900
     Net increase in other borrowings                                                               -        15,000
     Shares issued under the dividend reinvestment and stock purchase plan                        111            74
     Exercise of stock options                                                                    464           353
     Payments for cash dividends                                                                 (368)         (361)
                                                                                            ---------     ---------
         Net cash (used in) provided by financing activities                                  (16,732)       25,347
                                                                                            ---------     ---------
Net increase (decrease) in cash and cash equivalents                                            2,633       (35,185)
Cash and cash equivalents at beginning of period                                               10,347        46,745
                                                                                            ---------     ---------
Cash and cash equivalents at end of period                                                  $  12,980     $  11,560
                                                                                            ---------     ---------
Supplemental disclosure of cash flow information:
-------------------------------------------------
Cash paid during the period for:
     Interest                                                                               $   5,289     $   4,695
                                                                                            ---------     ---------
     Income taxes                                                                           $       -     $   1,880
                                                                                            ---------     ---------
Non-cash investing activities:
------------------------------
     Fair value of securities transferred from held-to-maturity
         to available-for-sale                                                              $       -     $  13,454
                                                                                            ---------     ---------
</TABLE>

See accompanying notes to consolidated financial statements.

                                       5
<PAGE>


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

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 six-month period ended June
30, 2005, 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
2004 Annual Report on Form 10-K.

The Company makes available through its internet website, WWW.LICB.COM, its
annual report on Form 10-K, quarterly reports on Form 10-Q, current reports on
Form 8-K, 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 materials with, or furnishes them to, the
Securities and Exchange Commission.

2.       SECURITIES

The following table sets forth certain information regarding amortized cost and
estimated fair value of securities available-for-sale as of the dates indicated:
<TABLE>
<CAPTION>
                                                                  JUNE 30, 2005              DECEMBER 31, 2004
                                                                  -------------              -----------------
                                                             AMORTIZED        FAIR        AMORTIZED       FAIR
                                                               COST           VALUE         COST          VALUE
                                                               ----           -----         ----          -----
                                                                                (IN THOUSANDS)
    <S>                                                    <C>              <C>          <C>             <C>
    AVAILABLE-FOR-SALE:
    U.S. Government and Agency obligations                 $   237,096      233,562      $  256,102      253,409
    Mortgage-backed securities:
       GNMA                                                     19,249       19,082          22,128       21,794
       FHLMC                                                     1,540        1,516           1,982        1,960
       FNMA                                                      1,156        1,185           1,424        1,452
    Municipal obligations                                          200          200             200          199
                                                           -----------      -------      ----------      -------
        Total securities available-for-sale                $   259,241      255,545      $  281,836      278,814
                                                           -----------      -------      ----------      -------
</TABLE>


                                       6

<PAGE>


3.       LOANS, NET
<TABLE>
<CAPTION>

Loans, net, are summarized as follows:
                                                                JUNE 30, 2005                  DECEMBER 31, 2004
                                                                -------------                  -----------------
                                                                            (DOLLARS IN THOUSANDS)
    <S>                                                      <C>          <C>                 <C>          <C>
    LOANS HELD-FOR-SALE:
       Residential real estate loans                         $     838    100.0 %             $     604    100.0 %
                                                             ---------    -----               ---------    -----

    LOANS, NET:
       Commercial and industrial loans                       $  58,798     23.4 %             $  46,414     18.9 %
       Commercial real estate loans                            170,432     68.0                 170,149     69.2
       Residential real estate loans                             3,240      1.3                   3,240      1.3
       Automobile loans                                         13,843      5.5                  24,127      9.8
       Consumer loans                                            4,529      1.8                   1,875      0.8
                                                             ---------    -----               ---------    -----
                                                               250,842    100.0                 245,805    100.0
       Less:
             Unearned income                                      (711)                          (1,342)
             Deferred fees, net                                 (1,006)                            (986)
             Allowance for loan losses                          (4,066)                          (5,591)
                                                             ---------                        ---------
    Total loans, net                                         $ 245,059                        $ 237,886
                                                             ---------                        ---------
</TABLE>

AUTOMOBILE LOANS
----------------

Since 2000, the Bank had maintained a program of making non-recourse loans to a
local automobile leasing company (the "third party") and received as security an
assignment of each individual lease and a collateral interest in each
automobile. The third party, in addition to providing complete servicing of the
portfolio, was obligated for the repayment of the entire principal balance of
each loan at the time each individual lease terminated. In March, 2004, the
Company learned that, due to liquidity issues and financial difficulties, the
third party would not have the ability to fulfill its obligations and ceased
origination of non-recourse loans to the automobile leasing company.

At June 30, 2005, the automobile loan portfolio, net of unearned income and
deferred fees, consisted of 664 loans with balances aggregating $13.1 million.
Automobile loans represented 5.3% of the Bank's loan portfolio, net of unearned
income and deferred fees. Delinquencies at June 30, 2005, were $227,102 or 1.7%
of the portfolio.

The Company incurred operating expenses relating to the automobile loan
portfolio of $131,000 for the quarter ended June 30, 2005, compared to $798,000
for the quarter ended June 30, 2004. Those expenses include expenses for legal
services, portfolio servicing and administration, collateral perfection,
verification and disposition, and audit and accounting services. While the
Company expects to continue to incur operating expenses related to the
automobile loan portfolio, it expects those expenses to decrease as the
portfolio matures. Operating costs for the automobile loan portfolio are
expensed when incurred and recorded in "automobile loan expense" in the
consolidated statements of earnings.


                                       7
<PAGE>

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. That method includes 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
that method, compensation expense is recorded on the date of grant only if the
current market price of the stock exceeds 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 (loss) if the fair-value-based method had
been applied to all stock options vested in each period:
<TABLE>
<CAPTION>
                                                                    FOR THE THREE MONTHS       FOR THE SIX MONTHS
                                                                        ENDED JUNE 30,            ENDED JUNE 30,
                                                                   ----------------------------------------------
                                                                   2005           2004         2005         2004
                                                                   ----------------------------------------------
                                                                   (DOLLARS IN THOUSANDS, EXCEPT PER SHARE DATA)

       <S>                                                         <C>           <C>         <C>           <C>
       Net income (loss) as reported                               $ 807         $ (897)     $ 1,667       $  24
       Deduct total stock-based employee compensation
              expense determined under fair-value-based
              method for all awards, net of tax                       51             45          144         144
                                                                   -----         ------      -------       -----
       Pro forma net income (loss)                                 $ 756         $ (942)     $ 1,523       $(120)
                                                                   -----         ------      -------       -----
       Earnings (loss) per share:
       Basic                                   As Reported         $ .53         $ (.60)     $  1.09       $ .02
                                               Pro forma             .49           (.63)        1.00        (.08)
       Diluted                                 As Reported           .51           (.56)        1.05         .02
                                               Pro forma             .47           (.59)         .96        (.08)
</TABLE>

5.       RECENT DEVELOPMENTS

On August 1, 2005, the Company and New York Community Bancorp, Inc. ("NYCB")
entered into an Agreement and Plan of Merger (the "Merger Agreement") under
which the Company will merge with and into NYCB, with NYCB as the surviving
entity, in an all-stock transaction valued at approximately $69.8 million. Under
the terms of the Merger Agreement, shareholders of the Company will receive 2.32
shares of NYCB common stock for each share of the Company common stock held at
the closing date. Additional information concerning the Merger Agreement can be
found in the Form 8-K filed by the Company on August 3, 2005.

On May 25, 2005, the Board of Directors of the Company declared a quarterly
dividend of $.12 per common share. The dividend was paid July 1, 2005, to
shareholders of record as of June 17, 2005.

6.       OTHER COMMITMENTS AND CONTINGENT LIABILITIES

In the normal course of business, the Bank enters into commitments to purchase
investment securities. At June 30, 2005, the Bank had no outstanding commitments
to purchase investment securities.



                                       8

<PAGE>


7.       RECENT ACCOUNTING PRONOUNCEMENTS

In December 2004, the Financial Accounting Standards Board ("FASB") issued
Statement of Financial Accounting Standards ("SFAS") No. 123 (Revised 2004),
Share Based Payments. The statement requires that compensation cost relating to
share-based payment transactions be recognized in financial statements and that
this cost be measured on the fair value of the equity or liability instruments
issued. SFAS No. 123 (Revised 2004) covers a wide range of share-based
compensation arrangements including share options, restricted share plans,
performance-based awards, share appreciation rights, and employee share purchase
plans. The Company will adopt SFAS No. 123 (Revised 2004) on January 1, 2006.

In March 2004, the FASB Emerging Issues Task Force ("EITF") reached a consensus
regarding EITF 03-1, "The Meaning of Other-Than-Temporary Impairment and Its
Application to Certain Investments." The consensus clarifies the meaning of
other-than-temporary impairment and its application to investments classified as
either available-for-sale or held-to-maturity under SFAS 115, "Accounting for
Certain Investments in Debt and Equity Securities," and investments accounted
for under the cost method or the equity method. The recognition and measurement
guidance for which the consensus was reached is to be applied to
other-than-temporary impairment evaluations. In September 2004, the Financial
Accounting Standards Board ("FASB") issued a final FASB Staff Position, FSP EITF
Issue 03-01-1, which delays the effective date for the measurement and
recognition guidance of EITF 03-01. In June, 2005, the FASB decided to issue a
proposed final FSP to supersede EITF Issue 03-1 and EITF Topic D-44 retitled FSP
FAS 115-1 which is expected to be finalized in September, 2005, and clarifies
that an investor should recognize an impairment loss no later than when the
impairment is deemed other than temporary, even if a decision to sell has not
been made.


ITEM 2.  MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS
-------  -----------------------------------------------------------------------
         OF OPERATION
         ------------

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


                                       9

<PAGE>


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.

OVERVIEW

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, which began
operations in 1990, and is engaged in commercial and consumer banking in
Islandia, New York, and the surrounding communities of Suffolk and Nassau
counties, and in Kings County. 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 AND ESTIMATES

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.

ALLOWANCE FOR LOAN LOSSES

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 Suffolk, Nassau and Kings counties.

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


                                       10

<PAGE>


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 significant loans or when otherwise deemed
necessary and primarily encompass commercial real estate loans and commercial
and industrial loans. Management believes that the Company's allowance for loan
losses at June 30, 2005 is adequate to provide for estimated probable losses
inherent in the portfolio.

SECURITIES

The fair value of securities classified as held-to-maturity or
available-for-sale is based upon quoted market prices. If quoted market prices
are not available, fair values are extrapolated from the quoted prices of
similar instruments.

DEFERRED TAX ASSETS

The Company uses estimates of future earnings to support the position that the
benefit of its deferred tax assets will be realized. If future income should
prove non-existent or less than the amount of the deferred tax assets within the
tax years to which they may be applied, the asset may not be realized and the
Company's net income would be reduced.

FINANCIAL CONDITION

Total assets were $539.7 million as of June 30, 2005, a decrease of $15.1
million, or 2.7%, from $554.8 million at December 31, 2004. The decrease in
total assets was primarily due to a decrease in the securities
available-for-sale portfolio, offset in part by an increase in the loan
portfolio. At June 30, 2005, securities available-for-sale decreased $23.3
million, or 8.3%, to $255.5 million, compared to the $278.8 million held at
December 31, 2004. The decrease in securities available-for-sale was primarily
due to the sale of $15 million of U.S. Government Agency obligations, which in
the aggregate resulted in no gain or loss, and normal principal repayments on
the mortgaged-backed securities portfolio. The $5.6 million, or 2.3% increase in
loans, net of unearned income and deferred fees, from $243.5 million at December
31, 2004, to $249.1 million at June 30, 2005, primarily reflects increases in
commercial and industrial loans offset by the maturing automobile loan
portfolio. Commercial and industrial loans rose $12.4 million, or 26.7%, from
$46.4 million at December 31, 2004, to $58.8 million at June 30, 2005.
Automobile loans decreased from $24.1 million at December 31, 2004, to $13.8
million at June 30, 2005. The Company ceased origination of automobile loans in
March 2004.

Total liabilities decreased $16.6 million, or 3.1%, from $527.8 million at
December 31, 2004, to $511.2 million at June 30, 2005. The decrease in total
liabilities was due principally to a decrease in federal funds purchased and
securities sold under agreements to repurchase combined with a nominal decrease
in total deposits. The Company utilizes overnight and short term borrowings,
primarily in the form of federal funds purchased and securities sold under
agreements to repurchase, as a funding source to fund asset growth when
necessary. There were $13.0 million of federal funds purchased at June 30, 2005,
compared to $27.5 million at December 31, 2004. The decrease in total deposits
is primarily the result of a $20.1 million, or 15.9%, decrease in NOW and money


                                       11

<PAGE>


market deposits from $126.5 million at December 31, 2004, to $106.4 million at
June 30 2005, attributable to the withdrawal of seasonal municipal funds on
deposit at December 31, 2004. Offsetting that decrease, demand deposits
increased $12.5 million, or 12.6%, as the Company continues to focus on the
growth of core deposits. Time deposits of $100,000 or more, and other time
deposits increased $9.4 million, or 13.8%, from $68.8 million at December 31,
2004, to $78.2 million at June 30, 2005, as the Bank utilized time deposits as
an alternative funding source when deemed advantageous. Other borrowings
aggregated $71.0 million at June 30, 2005.

Stockholders' equity increased $1.5 million, or 5.4%, from $27.0 million at
December 31, 2004, to $28.5 million at June 30, 2005. The increase in
stockholders' equity was primarily attributable to net income of $1.7 million
and $575,000 from stock issued through the exercise of stock options and the
dividend reinvestment and stock purchase plan. Those increases were offset in
part by a $404,000 increase in accumulated other comprehensive loss for the six
months ended June 30, 2005, and dividends declared of $368,000.

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 both the volume of interest-earning assets and interest-bearing liabilities
and the 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 six months ended June 30, 2005 and 2004, 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-performing loans
although the amount of non-performing loans is not material.




                                       12

<PAGE>
<TABLE>
<CAPTION>

                                                                   THREE MONTHS ENDED JUNE 30,
                                                -----------2005-----------           -----------2004-----------
                                                                    AVERAGE                               AVERAGE
                                              AVERAGE                YIELD /         AVERAGE               YIELD /
                                              BALANCE    INTEREST     COST           BALANCE    INTEREST    COST
                                              -------    --------     ----           -------    --------    ----
                                                                     (DOLLARS IN THOUSANDS)
<S>                                       <C>           <C>          <C>         <C>           <C>         <C>
ASSETS:
Interest-earning assets:
     Federal funds sold and
         interest-earning deposits        $    8,411    $     62      2.95 %    $    1,267     $       3     .95  %
     Securities (1)                          279,674       2,838      4.06         280,786         2,757    3.93
     Loans, net of unearned income and
         deferred fees (2)                   238,015       4,070      6.84         236,426         3,871    6.55
                                          ----------    --------     -----      ----------     ---------   -----
Total interest-earning assets                526,100       6,970      5.30         518,479         6,631    5.12
Non-interest-earning assets                   31,652                                34,633
                                          ----------                            ----------
Total assets                              $  557,752                            $  553,112
                                          ----------                            ----------

LIABILITIES AND STOCKHOLDERS' EQUITY:
Interest-bearing liabilities:
     Savings deposits                     $  119,305         490      1.64      $  101,239           272    1.07
     NOW and money market deposits           127,913         579      1.81         116,854           223     .76
     Certificates of deposit                  79,005         652      3.30          89,628           653    2.91
                                          ----------    --------     -----      ----------     ---------   -----
Total interest-bearing deposits              326,223       1,721      2.11         307,721         1,148    1.49
     Borrowed funds                           85,108         839      3.94         108,970           871    3.20
     Subordinated debentures                   7,732         209     10.81           7,732           206   10.66
                                          ----------    --------     -----      ----------     ---------   -----
Total interest-bearing liabilities           419,063       2,769      2.64         424,423         2,225    2.10
Other non-interest-bearing liabilities       112,307                               100,459
                                          ----------                            ----------
Total liabilities                            531,370                               524,882
Stockholders' equity                          26,382                                28,230
                                          ----------                            ----------
Total liabilities and
     stockholders' equity                 $  557,752                            $  553,112
                                          ----------                            ----------
Net interest income/
     interest rate spread (3)                           $  4,201      2.66%                    $   4,406    3.02  %
                                                        --------     -----                     ---------   -----

Net interest margin (4)                                               3.19%                                 3.40  %
                                                                     -----                                 -----
Ratio of interest-earning assets to
     interest-bearing liabilities                                     1.26x                                 1.22x
                                                                     -----                                 -----
</TABLE>

(1)  Amounts include Federal Home Loan Bank Stock, at cost. Unrealized
     appreciation / depreciation on available-for-sale securities are
     recorded in non-interest earning assets.
(2)  Amounts exclude the allowance for loan losses and include
     non-performing 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.


                                       13
<PAGE>
<TABLE>
<CAPTION>

                                                                     SIX MONTHS ENDED JUNE 30,
                                                -----------2005-----------           -----------2004-----------
                                                                    AVERAGE                               AVERAGE
                                              AVERAGE                YIELD /         AVERAGE               YIELD /
                                              BALANCE    INTEREST     COST           BALANCE    INTEREST    COST
                                              -------    --------     ----           -------    --------    ----
                                                                     (DOLLARS IN THOUSANDS)
<S>                                       <C>           <C>          <C>          <C>           <C>         <C>
ASSETS:
Interest-earning assets:
     Federal funds sold and
         interest-earning deposits       $     5,113    $     72      2.82 %      $    1,096    $      5     .91 %
     Securities (1)                          284,121       5,775      4.07           274,860       5,304    3.86
     Loans, net of unearned income and
         deferred fees (2)                   238,269       8,021      6.73           233,146       7,671    6.58
                                         -----------    --------     -----        ----------    --------   -----
Total interest-earning assets                527,503      13,868      5.26           509,102      12,980    5.10
Non-interest-earning assets                   30,647                                  36,599
                                         -----------                              ----------
Total assets                             $   558,150                              $  545,701
                                         -----------                              ----------

LIABILITIES AND STOCKHOLDERS' EQUITY:
Interest-bearing liabilities:
     Savings deposits                    $   121,335         911      1.50        $  103,172         563    1.09
     NOW and money market deposits           123,241       1,013      1.64           117,364         459     .78
     Certificates of deposit                  76,745       1,229      3.20            92,764       1,370    2.95
                                              ------    --------     -----        ----------    --------   -----
Total interest-bearing deposits              321,321       3,153      1.96           313,300       2,392    1.53
     Borrowed funds                           93,112       1,760      3.78            96,563       1,637    3.39
     Subordinated debentures                   7,732         415     10.73             7,732         413   10.68
                                         -----------    --------     -----        ----------    --------   -----
Total interest-bearing liabilities           422,165       5,328      2.52           417,595       4,442    2.13
Other non-interest-bearing liabilities       109,503                                 100,157
                                         -----------                              ----------
Total liabilities                            531,668                                 517,752
Stockholders' equity                          26,482                                  27,949
                                         -----------                              ----------
Total liabilities and
     stockholders' equity                $  558,150                               $  545,701
                                         ----------                               ----------

Net interest income/
     interest rate spread (3)                           $  8,540      2.74%                     $  8,538    2.97 %
                                                        --------     -----                      --------   -----

Net interest margin (4)                                               3.24%                                 3.35 %
                                                                     -----                                 -----
Ratio of interest-earning assets to
     interest-bearing liabilities                                     1.25x                                 1.22x
                                                                     -----                                 -----
</TABLE>

(1)  Amounts include Federal Home Loan Bank Stock, at cost. Unrealized
     appreciation / depreciation on available-for-sale securities are
     recorded in non-interest earning assets.
(2)  Amounts exclude the allowance for loan losses and include
     non-performing 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.

                                       14
<PAGE>


COMPARISON OF OPERATING RESULTS FOR THE THREE MONTHS ENDED JUNE 30, 2005 AND
2004

GENERAL

The Company reported net income of $807,000, or diluted earnings per share of
$.51 for the three months ended June 30, 2005, compared to a loss of $897,000
for the three months ended June 30, 2004. The loss recognized for the quarter
ended June 30, 2004 was attributable to an increase in the Company's provision
for loan losses relating to its automobile loan portfolio.

INTEREST INCOME

Interest income increased $339,000, or 5.1%, for the three months ended June 30,
2005, compared to the three months ended June 30, 2004. That increase was
attributable to the $7.6 million, or 1.5%, increase in the average balance of
interest-earning assets from $518.5 million for the three months ended June 30,
2004, to $526.1 million for the three months ended June 30, 2005. The increase
in income from the increase in the average balance of interest-earning assets
was aided in part by an 18 basis point increase in the average yield on
interest-earning assets from 5.12% for the three months ended June 30, 2004, to
5.30% for the three months ended June 30, 2005. The increase in average yield on
interest-earning assets was attributable to a 29 basis point increase in the
average yield on loans, net of unearned income and deferred fees, from 6.55% for
the three months ended June 30, 2004, to 6.84% for the three months ended June
30, 2005, and a 13 basis point increase in yield on securities which increased
from 3.93% for the three months ended June 30, 2004, to 4.06% for the three
months ended June 30, 2005. In addition to the increase in yield from period to
period, the average balance of loans, net of unearned income and deferred fees,
increased $1.6 million, or.7%, from $236.4 million for the three months ended
June 30, 2004, to $238.0 million for the three months ended June 30, 2005, while
the average balance of securities decreased $1.1 million, or .4%, from $280.8
million for three months ended June 30, 2004, to $279.7 million for the three
months ended June 30, 2005. As noted above, the decrease in the average balance
of securities was the result of sales during the second quarter in which the
Company sold $15.0 million of securities and used the proceeds to fund loan
demand. The increase in yields is attributable to the increases in short and
intermediate term market rates from period to period.

INTEREST EXPENSE

Interest expense for the three months ended June 30, 2005 was $2.8 million,
compared to $2.2 million for the three months ended June 30, 2004, an increase
of $544,000, or 24.4%. The increase was attributable to a 54 basis point
increase in the average rate paid on the average balance of interest-bearing
liabilities from 2.10% for the three months ended June 30, 2004, to 2.64% for
the three months ended June 30, 2005. The increase in the average rate paid was
attributable to the increases in short-term market rates from period to period.
The average balance of interest-bearing liabilities declined by $5.3 million, or
1.3%, from $424.4 million for the three months ended June 30, 2004, to $419.1
million for the three months ended June 30, 2005, offsetting in part the
increase in the average rate paid. That decline was attributable to a $23.9
million decrease in the average balance of borrowed funds, partially offset by
an $18.5 million increase in the average balance of total interest-bearing
deposits. The increase in the average balance of interest-bearing deposits was
due to an increase in the average balance of savings and NOW and money market
deposits, partially offset by a decrease in the average balance of certificates
of deposit. The average balance of subordinated debentures did not change from
June 30, 2004 to June 30, 2005.


                                       15

<PAGE>

Interest expense on interest-bearing deposits increased $573,000, or 49.9%, for
the three months ended June 30, 2005, from $1.1 million for the three months
ended June 30, 2004, to $1.7 million for the three months ended June 30, 2005.
That increase was due to a 62 basis point increase in the average rate paid on
interest-bearing deposits from 1.49% for the three months ended June 30, 2004,
to 2.11% for the three months ended June 30, 2005, combined with an increase in
the average balance of interest-bearing deposits. The average balance of savings
deposits increased $18.1 million, or 17.8%, from $101.2 million for the three
months ended June 30, 2004, to $119.3 million for the three months ended June
30, 2005. The average balance of NOW and money market deposits increased $11.0
million, or 9.5%, from $116.9 million for the three months ended June 30, 2004,
to $127.9 million for the three months ended June 30, 2005. Offsetting that
increase in deposits, was a $10.6 million decrease in the average balance of
certificates of deposits from $89.6 million for the three months ended June 30,
2004, to $79.0 million for the three months ended June 30, 2005. From time to
time, the Bank employs various funding strategies to minimize its overall costs
of funds while concentrating efforts to increase low cost core deposit
relationships.

Interest expense on borrowed funds decreased $32,000, or 3.7%, from $871,000 for
the three months ended June 30, 2004, to $839,000 for the three months ended
June 30, 2005. The decrease was primarily due to a $23.9 million decrease in the
average balance of borrowed funds from $109.0 million for the three months ended
June 30, 2004 to $85.1 million for the three months ended June 30, 2005.
Offsetting the decline in the average balance of borrowed funds, the average
rate paid on borrowed funds increased from 3.20% for the three months ended June
30, 2004, to 3.94% for the three months ended June 30, 2005, primarily resulting
from the increase in short term market interest rates from period to period.

NET INTEREST INCOME

Net interest income decreased by $205,000, or 4.7%, from $4.4 million for the
three months ended June 30, 2004, to $4.2 million for the three months ended
June 30, 2005. The average yield on interest-earning assets increased 18 basis
points from 5.12% for the three months ended June 30, 2004, to 5.30% for the
three months ended June 30, 2005. However, the average rate paid on
interest-bearing liabilities increased 54 basis points from 2.10% for the three
months ended June 30, 2004, to 2.64% for the three months ended June 30, 2005,
resulting in a 36 basis point decrease in the net interest rate spread from
3.02% for the three months ended June 30, 2004, to 2.66% for the three months
ended June 30, 2005.

PROVISION FOR LOAN LOSSES

The Company made a $50,000 provision for loan losses for the three months ended
June 30, 2005, compared to a $5,000,000 provision made for the three months
ended June 30, 2004 to recognize losses in the automobile loan portfolio. The
determination to make the $50,000 provision for loan losses for the three months
ended June 30, 2005, 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 $4.1 million at June 30, 2005,
and $5.6 million at December 31, 2004. The allowance for loan losses as a
percentage of loans was 1.63% at June 30, 2005, and 2.30% at December 31, 2004.


                                       16

<PAGE>


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 collectible and a consistent record
of performance has been demonstrated.
<TABLE>
<CAPTION>

                                                                  JUNE 30, 2005      DECEMBER 31, 2004
                                                                  ------------------------------------
                                                                         (DOLLARS IN THOUSANDS)
<S>                                                                <C>                   <C>
NON-ACCRUAL LOANS:
     Commercial and industrial loans                               $       -             $     -
     Commercial real estate loans                                          -                   -
     Automobile loans                                                      -                  89
                                                                   ---------             -------
         Total non-accrual loans                                           -                  89
                                                                   ---------             -------
LOANS ACCRUING - OVER 90 DAYS:
     Commercial and industrial loans                                      -                    -
                                                                   --------              -------
         Total loans accruing-over 90 days                                -                    -
                                                                   --------              -------
Total non-performing loans                                         $      -              $    89
                                                                   --------              -------
Allowance for loan losses as a percentage of loans (1)                 1.63 %               2.30 %
Allowance for loan losses as a percentage
     of total non-performing loans                                        - %              6,282 %
Non-performing loans as a percentage of loans (1)                         - %                .04 %
</TABLE>

(1)   Loans include loans, net of unearned income and deferred fees.

OTHER OPERATING INCOME

Other operating income decreased $2.3 million or 66.9%, to $1.2 million for the
three months ended June 30, 2005, compared to $3.5 million for the three months
ended June 30, 2004. That decrease was primarily attributable to net gains on
sales and calls of securities of $2.5 million for the three months ended June
30, 2004. There were no gains on sales or calls of securities for the three
months ended June 30, 2005. Service charges on deposit accounts increased
$88,000, or 14.2%, from $618,000 for the three months ended June 30, 2004, to
$706,000 for the three months ended June 30, 2005. Other operating income
increased $98,000 to $226,000 for the three months ended June 30, 2005, as a
result of construction loan fees earned and increases in the use of other
deposit services. Net gain on sale of residential loans declined $57,000 to
$147,000 for the three months ended June 30, 2005, as increasing market interest
rates decrease the amount of residential refinance activity.

OTHER OPERATING EXPENSES

Other operating expenses decreased $357,000 or 8.1% from $4.4 million to $4.1
million for the three months ended June 30, 2005. The decrease in operating
expenses were a result of decreased expenses associated with the automobile loan
portfolio, the Company's implementation of certain cost controls and a
modification of its branch expansion plan. Increases in salaries and employee
benefits offset that decrease, in part, as the Company increased its
infrastructure to comply with expanded regulatory compliance requirements.


                                       17

<PAGE>

INCOME TAXES

Income tax expense was $443,000 for the three months ended June 30, 2005,
compared to an income tax benefit of $592,000 for the three months ended June
30, 2004. For the three months ended June 30, 2005, the Company recorded income
before income taxes of $1.3 million, compared to a loss before income taxes of
$1.5 million for the three months ended June 30, 2004.

COMPARISON OF OPERATING RESULTS FOR THE SIX MONTHS ENDED JUNE 30, 2005 AND 2004

GENERAL

The Company reported net income of $1.7 million, or diluted earnings per share
of $1.05 for the six months ended June 30, 2005, compared to $24,000, or diluted
earnings per share of $.02 for the six months ended June 30, 2004.

INTEREST INCOME

Interest income increased $888,000, or 6.8%, for the six months ended June 30,
2005, compared to the six months ended June 30, 2004. That increase was
attributable to the $18.4 million, or 3.6%, increase in the average balance of
interest-earning assets from $509.1 million for the six months ended June 30,
2004, to $527.5 million for the six months ended June 30, 2005. The increase in
income from the increase in the average balance of interest-earning assets was
aided in part by a 16 basis point increase in the average yield on
interest-earning assets from 5.10% for the six months ended June 30, 2004, to
5.26% for the six months ended June 30, 2005. The increase in average yield on
interest-earning assets was attributable to a 21 basis point increase in yield
on securities which increased from 3.86% for the six months ended June 30, 2004,
to 4.07% for the six months ended June 30, 2005, and a 15 basis point increase
in the average yield on loans, net of unearned income and deferred fees, from
6.58% for the six months ended June 30, 2004, to 6.73% for the six months ended
June 30, 2005. In addition to the increase in yield from period to period, the
average balance of securities increased $9.2 million, or 3.4%, from $274.9
million for six months ended June 30, 2004, to $284.1 million for the six months
ended June 30, 2005. The average balance of loans, net of unearned income and
deferred fees, increased $5.2 million, or 2.2%, from $233.1 million for the six
months ended June 30, 2004, to $238.3 million for the six months ended June 30,
2005. The increase in yield is attributable to increases in market rates from
period to period.

INTEREST EXPENSE

Interest expense for the six months ended June 30, 2005 was $5.3 million,
compared to $4.4 million for the six months ended June 30, 2004, an increase of
$886,000, or 19.9%. The increase was attributable to a 39 basis point increase
in the average rate paid on the average balance of interest-bearing liabilities
from 2.13% for the six months ended June 30, 2004, to 2.52% for the six months
ended June 30, 2005, coupled with a $4.6 million increase in the average balance
of interest-bearing liabilities from $417.6 million for the six months ended
June 30, 2004, to $422.2 million for the six months ended June 30, 2005. The
increase in the average balance of interest-bearing liabilities was attributable
to an $8.0 million increase in the average balance of total interest-bearing
deposits, partially offset by a $3.5 million decrease in the average balance of
borrowed funds. The increase in the average balance of interest-bearing deposits
was due to an increase in the average balance of savings and NOW and money
market deposits partially offset by a decrease in the average balance of
certificates of deposit. The average balance of subordinated debentures did not
change from June 30, 2004 to June 30, 2005.


                                       18

<PAGE>



Interest expense on interest-bearing deposits increased $761,000, or 31.8%, for
the six months ended June 30, 2005, from $2.4 million for the six months ended
June 30, 2004, to $3.2 million for the six months ended June 30, 2005. That
increase was due to a 43 basis point increase in the average rate paid on
interest-bearing deposits from 1.53% for the six months ended June 30, 2004, to
1.96% for the six months ended June 30, 2005 and an increase in the average
balance of interest-bearing deposits of $8.0 million, or 2.6%, from $313.3
million for the six months ended June 30, 2004, to $321.3 million for the six
months ended June 30, 2005. The increase in the average balance of
interest-bearing deposits was the result of an increase in the average balance
of savings deposits, which increased $18.1 million from $103.2 million for the
six months ended June 30, 2004, to $121.3 million for the six months ended June
30, 2005, and the $5.8 million increase in the average balance of NOW and money
market deposits from $117.4 million for the six months ended June 30, 2004, to
$123.2 million for the six months ended June 30, 2005. Those increases were
offset in part by a $16.1 million decrease in the average balance of time
deposits from $92.8 million for the six months ended June 30, 2004, to $76.7
million for the six months ended June 30, 2005. From time to time, the Bank
employs various funding strategies to minimize its overall costs of funds while
concentrating efforts to increase low cost core deposit relationships.

Interest expense on borrowed funds increased $123,000, or 7.5%, from $1.6
million for the six months ended June 30, 2004, to $1.8 million for the six
months ended June 30, 2005. The increase was primarily due to the increase in
the average rate paid on borrowed funds, which increased from 3.39% for the six
months ended June 30, 2004, to 3.78% for the six months ended June 30, 2005. The
increase in the average rate paid on borrowed funds was offset in part by the
$3.5 million, or 3.6% decrease, in the average balance of borrowed funds from
$96.6 million for the six months ended June 30, 2004, to $93.1 million for the
six months ended June 30, 2005.

NET INTEREST INCOME

Net interest income remained level at $8.5 million for the six months ended June
30, 2005. The average yield on interest-earning assets increased 16 basis points
from 5.10% for the six months ended June 30, 2004, to 5.26% for the six months
ended June 30, 2005. The average rate paid on interest-bearing liabilities
increased 39 basis points from 2.13% for the six months ended June 30, 2004, to
2.52% for the six months ended June 30, 2005. The net interest rate spread
decreased 23 basis points, from 2.97% for the six months ended June 30, 2004, to
2.74% for the six months ended June 30, 2005.

PROVISION FOR LOAN LOSSES

The Company made a $125,000 provision for loan losses for the six months ended
June 30, 2005, compared to a $5,500,000 provision made for the six months ended
June 30, 2004 to recognize losses in the automobile loan portfolio. The
determination to make the $125,000 provision for loan losses for the six months
ended June 30, 2005, 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 $4.1 million at June 30, 2005,
and $5.6 million at December 31, 2004. The allowance for loan losses as a
percentage of loans was 1.63% at June 30, 2005, and 2.30% at December 31, 2004.



                                       19
<PAGE>


OTHER OPERATING INCOME

Other operating income decreased $3.0 million, or 57.8%, to $2.2 million for the
six months ended June 30, 2005, as compared to $5.2 million for the six months
ended June 30, 2004. That decrease was primarily attributable to net gains on
sales and calls of securities of $2.9 million for the six months ended June 30,
2004. There were no gains on sales or calls of securities for the six months
ended June 30, 2005. Service charges on deposit accounts increased $74,000, or
5.8%, from $1.2 million for the six months ended June 30, 2004, to $1.3 million
for the six months ended June 30, 2005. Other operating income increased
$128,000 to $391,000 for the six months ended June 30, 2005, as a result of
construction loan fees earned and increases in the use of other deposit
services. Net gain on sale of residential loans declined $113,000 to $283,000
for the six months ended June 30, 2005, as increasing market interest rates
decrease the amount of residential refinance activity.

OTHER OPERATING EXPENSES

Other operating expenses decreased $388,000 or 4.6%, to $8.0 million for the six
months ended June 30, 2005. The decrease in operating expenses was a result of
decreased automobile loan expenses, the Company's implementation of certain cost
controls and a modification of its branch expansion plan. Increases in salaries
and employee benefits offset that decrease, in part, as the Company increased
its infrastructure to comply with expanded regulatory compliance requirements.

INCOME TAXES

Income tax expense was $923,000 for the six months ended June 30, 2005, compared
to an income tax benefit of $193,000 for the six months ended June 30, 2004. For
the six months ended June 30, 2005, the Company recorded income before income
taxes of $2.6 million, compared to a loss before income taxes of $169,000 for
the six months ended June 30, 2004.

LIQUIDITY

Liquidity management for the Company requires that funds be available to pay all
deposit withdrawals and maturing financial obligations and to meet
credit-funding requirements promptly and fully in accordance with their terms.
Over a very short time frame, maturing assets provide only a limited portion of
the funds required to pay maturing liabilities. 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 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 or calls of 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, liquidate available-for-sale securities and access its lines of
credit, totaling $6.0 million with unaffiliated financial institutions, which
enable it to borrow funds on an unsecured basis. The Company has available
overnight and one month lines of credit with the Federal Home Loan Bank of New
York ("FHLB") equal to $63.5 million, which enable it to borrow funds on a
secured basis. In addition, the Company could engage in other secured
borrowings, including FHLB advances and securities sold under agreements to
repurchase.

                                       20

<PAGE>


At June 30, 2005, the Company's other 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 securities, callable U.S. agency securities, and certain
other qualifying commercial real-estate collateral.

At June 30, 2005, convertible and medium term advances outstanding were as
follows:
<TABLE>
<CAPTION>
                                                                              NEXT                  CONTRACTUAL
                                         AMOUNT            RATE             CALL DATE                MATURITY
                                         ------            ----             ---------                --------

<S>                                     <C>                <C>             <C>                      <C>
Medium term advance                 $   10,000,000         2.37%                 -                   4/14/2006
Convertible advance                     14,000,000         5.49%            8/19/2005                2/19/2008
Convertible advance                     15,000,000         4.59%            7/21/2005                1/21/2009
Convertible advance                      5,000,000         2.24%             2/3/2006                 2/3/2009
Convertible advance                     14,000,000         4.97%            7/19/2005                1/19/2011
Convertible advance                      3,000,000         4.11%           12/12/2005               12/12/2011
Convertible advance                     10,000,000         2.64%            5/28/2008                5/28/2013
                                    --------------
                                    $   71,000,000
</TABLE>

The primary investing activities of the Company are the purchase of securities
available-for-sale and the origination of loans. During the six months ended
June 30, 2005, and 2004, the Company's purchases of securities that were
classified available-for-sale totaled $135.0 million and $577.7 million,
respectively. Loan originations, net of principal repayments on loans, totaled
$7.3 million and $14.1 million for the six months ended June 30, 2005, and 2004,
respectively. Short term borrowings, principal repayments and maturities and
sales 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, 2004, 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 June 30, 2005, the Bank exceeded those
requirements with a leverage capital ratio, risk-based capital ratio and
total-risk based capital ratio of 6.08%, 10.73%, and 11.98%, 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


                                       21

<PAGE>


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 2004, the Board of Directors, approved a 5% stock
repurchase program that would enable the Company to repurchase approximately
74,000 shares of its outstanding common stock. There have been no repurchases
made under that stock purchase program since its announcement. In determining
the extent and timing of stock repurchase programs, in addition to capital
adequacy, the Company considers the effect on the Company's financial condition,
average daily trading volume, and listing requirements applicable to the NASDAQ
National Market(R). At June 30, 2005, the Company held 336,900 shares of
treasury stock at an average cost of $12.40 per share.

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 June 30, 2005, 83.3% of the Company's gross loans had adjustable interest
rates and its loan portfolio had an average weighted maturity of 8.7 years. At
such date, $28.3 million, or 11.1%, of the Company's securities had adjustable
interest rates, and its available-for-sale securities portfolio had an average
contractual maturity of 6.6 years. At June 30, 2005, the Company had $37.3
million of time deposits with maturities of one year or less and $15.3 million
of time deposits of $100,000 or more, which tend to be less stable sources of
funding as compared to core deposits, and represented 13.3% of the Company's
interest-bearing liabilities. Due to the Company's level of shorter term time
deposits, the cost of funds of the Company 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 through the use of a
quarterly interest rate risk analysis model which evaluates (i) the potential
change in net interest income over the succeeding four quarters and (ii) the
potential change in the fair market value of the 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.


                                       22

<PAGE>


At June 30, 2005, 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>
<CAPTION>

             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)
              <S>                     <C>              <C>                     <C>                <C>
                200                   $  (890)         (4.92)%                 $   (718)           (1.79)%
                100                      (359)         (1.98)                        51             0.13
              Static                       --             --                         --               --
               (100)                     (733)         (4.05)                    (1,810)           (4.52)
               (200)                   (2,015)         11.14)                    (6,292)          (15.70)
</TABLE>

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-14 or Section 240.15d-14 of
              this chapter, the Chief Executive and Chief Financial officers of
              the Company concluded that the Company's disclosure controls and
              procedures were effective.

          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
-------       -----------------

              None.

ITEM 2.       UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS
-------       -----------------------------------------------------------

              None.

ITEM 3.       DEFAULTS UPON SENIOR SECURITIES
-------       -------------------------------

              None.


                                       23
<PAGE>


ITEM 4.       SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS
-------       ---------------------------------------------------

              The Company's Annual Meeting of Stockholders was held on April 20,
              2005, and the following individuals were elected as Directors for
              a term of three years each:
<TABLE>
<CAPTION>
                                                     Vote           Votes             Broker
                                                      For          Withheld          Abstentions      Non-Votes
                                                      ---          --------          -----------      ---------

              <S>                                  <C>               <C>                  <C>            <C>
              Harvey Auerbach                      1,241,729         2,061                -              -
              Frank J. Esposito                    1,241,729         2,061                -              -
              Douglas C. Manditch                  1,241,429         2,361                -              -
              John R. McAteer                      1,241,929         1,861                -              -
</TABLE>

              The term of the following Directors continued after the Annual
              Meeting: John L. Ciarelli, Esq., Donald Del Duca, Frank DiFazio,
              Waldemar Fernandez, Gordon A. Lenz, Werner S. Neuburger, Thomas F.
              Roberts, III, Alfred Romito, John C. Tsunis, Esq.

ITEM 5.       OTHER INFORMATION
-------       -----------------

              None.

ITEM 6.       EXHIBITS
-------       --------

                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


                                       24

<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:  August 15, 2005                 By: /s/ Douglas C. Manditch
                                           -----------------------
                                           Douglas C. Manditch
                                           President & Chief Executive Officer


Date:  August 15, 2005                 By: /s/ Thomas Buonaiuto
                                           --------------------
                                           Thomas Buonaiuto
                                           Vice President & Secretary-Treasurer





                                       25