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

                                    FORM 10-Q

(Mark One)     Quarterly Report Pursuant to Section 13 or 15(d) of
  ( X )               the Securities Exchange Act of 1934
                  For the quarterly period ended June 30, 2000
                                       OR
  ( X )        Transition Report Pursuant to Section 13 or 15(d) of
                       the Securities Exchange Act of 1934
                For the transition period from ______ to _______

                          Commission File No.: 0-29826
                                               -------

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

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

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

The registrant had 1,598,826 shares of Common Stock outstanding as of August 11,
2000.
<PAGE>

                                    Form 10-Q
                           LONG ISLAND FINANCIAL CORP.

                                      INDEX

                                                                           Page
PART I - FINANCIAL INFORMATION                                            Number

ITEM 1. Consolidated Financial Statements - Unaudited
        Consolidated Balance Sheets at June 30, 2000
          and December 31, 1999                                              2
        Consolidated Statements of Earnings for the Three Months
          and Six Months Ended June 30, 2000 and 1999                        3
        Consolidated Statement of Changes in Stockholders' Equity
          for the Six Months Ended June 30, 2000                             4
        Consolidated Statements of Cash Flows for the Six Months
          Ended June 30, 2000 and 1999                                       5
        Notes to Consolidated Financial Statements                           7

ITEM 2. Management's Discussion and Analysis of Financial
        Condition and Results of Operations                                 10

ITEM 3. Quantitative and Qualitative Disclosures About Market Risk          21

PART II - OTHER INFORMATION

ITEM 1. Legal Proceedings                                                   23
ITEM 2. Changes in Securities and Use of Proceeds                           23
ITEM 3. Defaults Upon Senior Securities                                     23
ITEM 4. Submission of Matters to a Vote of Security Holders                 23
ITEM 5. Other Information                                                   23
ITEM 6. Exhibits and Reports on Form 8-K                                    23

        Signatures                                                          24

================================================================================

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. Such forward-looking  statements are subject to
risks and uncertainties which  could cause actual results  to differ  materially
from those projected. Such  risks and uncertainties include potential changes in
interest rates, competitive factors  in the financial services industry, general
economic conditions, the effect  of new legislation, and other risks detailed in
documents filed by  the Company with the Securities and Exchange Commission from
time to time.

================================================================================



                                        1
<PAGE>
<TABLE>
<CAPTION>

PART I - FINANCIAL INFORMATION

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

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


                                                                              June 30,     December 31,
                                                                                2000           1999
                                                                            -----------    ------------
                                                                            (Unaudited)
<S>                                                                          <C>             <C>
Assets:

Cash and due from banks...................................................   $  5,721          9,301
Interest earning deposits.................................................      1,329            204
Federal funds sold........................................................          -         18,300
                                                                             --------        -------
          Total cash and cash equivalents.................................      7,050         27,805

Securities held-to-maturity (fair value of $319 and $338, respectively)...        339            341
Securities available-for-sale, at fair value..............................    121,380        169,808
Loans, net of unearned income and deferred fees...........................    134,025        121,311
Less allowance for loan losses............................................     (1,913)        (1,475)
                                                                              -------        -------
          Total loans, net................................................    132,112        119,836
Premises and equipment, net...............................................      1,894          2,089
Accrued interest receivable...............................................      1,864          2,062
Bank owned life insurance.................................................      6,059          5,921
Prepaid expenses and other assets.........................................      4,356          3,192
                                                                              -------        -------
          Total assets....................................................   $275,054        331,054
                                                                              =======        =======

Liabilities and Stockholders' Equity:

Deposits:
     Demand deposits......................................................   $ 38,873         36,191
     Savings deposits.....................................................     30,641         28,444
     NOW and money market deposits........................................     36,755        103,126
     Time certificates issued in excess of $100,000.......................     26,970         18,242
     Other time deposits..................................................     75,558         83,737
                                                                              -------        -------
          Total deposits..................................................    208,797        269,740

Borrowed funds............................................................     44,516         39,500
Accrued expenses and other liabilities....................................      3,514          3,471
                                                                              -------        -------
          Total liabilities...............................................    256,827        312,711
                                                                              -------        -------

Stockholders' equity:
     Common stock (par value $.01 per share; 10,000,000 shares,
       authorized; 1,776,326 shares issued; 1,626,326 and 1,6,326
       outstanding, respectively).........................................         18             18
     Surplus..............................................................     20,185         20,185
     Accumulated surplus..................................................      3,327          2,587
     Accumulated other comprehensive loss.................................     (3,620)        (2,984)
     Treasury stock at cost, (150,000 shares).............................     (1,683)        (1,463)
                                                                              -------        -------
          Total stockholders' equity......................................     18,227         18,343
                                                                              -------        -------
          Total liabilities and stockholders' equity......................   $275,054        331,054
                                                                              =======        =======

See accompanying notes to consolidated financial statements.
</TABLE>
                                                      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,
                                                           ----------------------         --------------------
                                                             2000           1999           2000          1999
                                                             ----           ----           ----          ----
<S>                                                      <C>            <C>            <C>           <C>
Interest income:
     Loans                                                 $ 2,925          2,164          5,633         4,227
     Securities                                              2,321          2,334          5,028         4,682
     Federal funds sold                                          4            122             15           260
     Earning deposits                                            4              2              8             4
                                                             -----          -----         ------         -----
          Total interest income                              5,254          4,622         10,684         9,173
                                                             -----          -----         ------         -----

Interest expense:
     Savings deposits                                      $   279            171            545           302
     NOW and money market deposits                             310            289            650           614
     Time certificates issued in excess of $100,000            314            316            557           660
     Other time deposits                                     1,229          1,112          2,456         2,244
     Borrowed funds                                            604            503          1,483           945
                                                             -----          -----          -----        ------
          Total interest expense                             2,736          2,391          5,691         4,765
                                                             -----          -----          -----        ------

     Net interest income                                     2,518          2,231          4,993         4,408

Provision for loan losses                                        -            150            150           300
                                                             -----          -----          -----        ------

     Net interest income after provision
       for loan losses                                       2,518          2,081          4,843         4,108
                                                             -----          -----          -----         -----

Other operating income:
     Service charges on deposit accounts                   $   221            167            421           310
     Net gain on sale of securities                              -             88              -            88
     Mortgage banking operations                                47            182             99           325
     Other                                                     160            159            287           190
                                                             -----          -----          -----        ------
          Total other operating income                         428            596            807           913

Other operating expenses:
     Salaries and employee benefits                          1,056          1,002          2,086         1,941
     Occupancy expense                                         142            145            276           280
     Premises and equipment expense                            200            175            392           349
     Other                                                     717            594          1,390         1,168
                                                             -----          -----          -----         -----
         Total other operating expenses                      2,115          1,916          4,144         3,738

         Income before income taxes                            831            761          1,506         1,283

Income taxes                                                   282            262            505           452
                                                             -----          -----         ------        ------

       Net income                                          $   549            499          1,001           831
                                                             =====          =====          =====        ======
       Basic and diluted earnings per share                $  0.33           0.28           0.61          0.47
                                                             =====          =====         ======        ======

Weighted average shares outstanding                      1,639,293      1,776,326      1,642,810     1,776,160

</TABLE>

See accompanying notes to unaudited consolidated financial statements.


                                        3
<PAGE>
<TABLE>
<CAPTION>

                           LONG ISLAND FINANCIAL CORP.
            Consolidated Statement of Changes in Stockholders' Equity
                     For the Six Months Ended June 30, 2000
                                   (Unaudited)
                        (In thousands, except share data)

                                                                                          Accumulated
                                                                                             Other
                                                  Common                 Accumulated     Comprehensive     Treasury
                                                  Stock      Surplus       Surplus            Loss           Stock      Total
                                                  ------     -------     -----------     -------------     ---------    -----
<S>                                             <C>           <C>           <C>             <C>             <C>         <C>

Balance at December 31, 1999                    $    18       20,185        2,587           (2,984)         (1,463)     18,343

Comprehensive income:
     Net income                                       -            -        1,001                -               -       1,001
         Other comprehensive income (loss),
               net of tax:
         Unrealized loss in available-
              for-sale securities, net of
              reclassification adjustment             -            -            -             (636)              -        (636)
                                                  -----       ------        -----            -----           -----      ------

Total comprehensive income                            -            -            -                -               -         365

Common stock repurchased (20,000 shares)                                                                      (220)       (220)

Dividends declared  ($.16 per common share)           -            -         (261)               -               -        (261)
                                                  -----       ------         ----            -----           -----      ------


Balance at June 30, 2000                       $     18       20,185        3,327           (3,620)         (1,683)     18,227
                                                  =====       ======        =====            =====           =====      ======
</TABLE>






See accompanying notes to unaudited consolidated financial statements.


                                                    4
<PAGE>
<TABLE>
<CAPTION>


                           LONG ISLAND FINANCIAL CORP.
                      Consolidated Statements of Cash Flows
                                   (Unaudited)
                                 (In thousands)

                                                                           For the Six Months
                                                                              Ended June 30,
                                                                           ------------------
                                                                           2000          1999
                                                                           ----          ----
<S>                                                                     <C>          <C>

Cash flows from operating activities:

     Net income                                                         $  1,001          831
     Adjustments to reconcile net income to net cash
       provided by operating activities:
            Provision for loan losses                                        150          300
            Depreciation and amortization                                    376          282
            Amortization of premiums, net of discount accretion             (851)        (122)
            Gain on sales of securities                                        -          (88)
            Loans originated for sale, net of proceeds
              from sales and gains                                           282          451
            Net deferred loan origination fees                                47           74
            Deferred income taxes                                            (56)         (71)
            Changes in assets and liability account:
                 Accrued interest receivable                                 198         (213)
                 Accrued expenses and other liabilities                       43          260
                 Prepaid expenses and other assets                          (794)         216
                                                                         -------      -------

     Net cash provided by operating activities                               396        1,920
                                                                         -------      -------

Cash flows from investing activities:

     Purchases of securities available-for-sale                         (344,651)    (226,838)
     Proceeds from sales of securities available-for-sale                      -       12,777
     Proceeds from maturities of securities                              389,600      211,195
     Principal repayments on securities                                    3,244        9,576
     Loan originations net of principal repayments                       (12,755)     (11,836)
     Purchase of premises and equipment                                     (181)        (505)
     Purchase of bank owned life insurance                                     -       (5,715)
                                                                         -------      -------
          Net cash provided by (used in) investing activities             35,257      (11,346)
                                                                         -------      -------

Cash flows from financing activities:
     Net decrease in demand deposit, savings,  NOW,
       and money market accounts                                         (61,492)     (23,962)
     Net increase in certificates of deposit                                 549        2,535
     Net increase in borrowed funds                                        5,016       15,000
     Payments for cash dividends                                            (261)        (284)
     Purchase of treasury stock                                             (220)           -
     Corporate reorganization costs                                            -         (115)
     Proceeds from shares issued under the dividend
       reinvestment and stock purchase plan                                    -           59
                                                                         -------       ------
          Net cash (used in) provided by financing activities            (56,408)      (6,767)
                                                                         -------       ------

          Net decrease in cash and cash equivalents                      (20,755)     (16,193)

Cash and cash equivalents at beginning of period                          27,805       21,489
                                                                         -------      -------
Cash and cash equivalents at end of period                              $  7,050        5,296
                                                                         =======      =======

                                   (Continued)
</TABLE>


                                        5
<PAGE>

                           LONG ISLAND FINANCIAL CORP.
                      Consolidated Statements of Cash Flows
                                   (Unaudited)
                                 (In thousands)


                                                     For the Six Months
                                                       Ended June 30,
                                                     ------------------
                                                     2000          1999
                                                     ----          ----
Supplemental disclosure of cash flow information

Cash paid during the period for:

     Interest                                     $ 5,738         5,074
                                                    =====         =====

     Income taxes                                 $ 1,080             -
                                                    =====         =====



See accompanying notes to consolidated financial statements.

                                        6
<PAGE>

                           LONG ISLAND FINANCIAL CORP.
                   NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

1.  BASIS OF PRESENTATION

The  accompanying   unaudited  consolidated  financial  statements  include  the
accounts of Long Island  Financial Corp.  (the  "Company") and its  wholly-owned
subsidiary,  Long Island Commercial Bank (the "Bank").  Significant intercompany
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, 2000 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 generally
accepted  accounting  principles 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 1999 Annual Report on Form 10-K.

2.  REORGANIZATION

At a special  meeting on  December  8, 1998,  the  stockholders  of Long  Island
Commercial  Bank approved a Plan of Acquisition  dated as of September 15, 1998,
which subsequently  became effective January 28, 1999, and as a result of which:
(i) the Bank became a wholly-owned  subsidiary of Long Island Financial Corp., a
Delaware  corporation;  and (ii) all of the  outstanding  shares  of the  Bank's
common stock were  converted,  subject to dissenter's  rights,  on a one-for-one
basis,  into  outstanding  shares of the common  stock of Long Island  Financial
Corp.  No  stockholder   asserted   dissenter's   rights.  This  transaction  is
hereinafter referred to as the "Reorganization."

The  Reorganization  created a bank holding  company  structure  which  provides
greater operating flexibility by allowing the Company to conduct a broader range
of business  activities  and permits  the Board of  Directors  of the Company to
determine  whether  to  conduct  such  activities  in the  Bank  or in  separate
subsidiaries of the Company.  Finally,  the reorganization will permit expansion
into a broader range of financial  services and other business  activities  that
are not currently permitted to the Bank as a New York state-chartered commercial
bank. Such  activities  include,  among others,  operating  non-bank  depository
institutions  or  engaging  in  financial  and  investment   advisory  services,
securities brokerage and management consulting activities.

                                        7
<PAGE>
<TABLE>
<CAPTION>

3.  SECURITIES

The following table sets forth certain information  regarding amortized cost and
estimated fair values of the securities  held-to-maturity and available-for-sale
as of the dates indicated:


                                                June 30, 2000               December 31, 1999
                                           --------------------         ---------------------
                                           Amortized      Fair          Amortized       Fair
                                              Cost        Value           Cost          Value
                                           ---------      -----         ---------       -----
                                                             (In thousands)
<S>                                        <C>           <C>             <C>           <C>

Held-to-maturity:
Mortgage-backed securities:
  CMO                                      $    339          319             341           338
                                            =======      =======         =======       =======

Available-for-sale:
U.S. Government and Agency Obligations     $ 77,515       72,977         122,423       118,907
     Mortgage-backed securities:
         GNMA                                39,332       37,760          41,136        39,580
         FHLMC                                1,180        1,192           1,350         1,369
         FNMA                                 3,053        2,995           3,599         3,571
Municipal obligations                         1,167        1,130           1,166         1,143
Other debt securities                             -            -              92            91
                                            -------      -------         -------       -------
     Total debt securities                  122,247      116,054         169,766       164,661

Equity securities - FHLB stock                5,326        5,326           5,147         5,147
                                            -------      -------         -------       -------
     Total securities available-for-sale   $127,573      121,380         174,913       169,808
                                            =======      =======         =======       =======
</TABLE>


4.  LOANS, NET

Loans, net consist of the following as of the dates indicated:
<TABLE>
<CAPTION>

                                                  June 30, 2000             December 31, 1999
                                                  -------------             -----------------
                                                           (Dollars in thousands)
<S>                                             <C>        <C>            <C>          <C>

Commercial and industrial loans                 $ 41,724    31.0 %        $ 34,057      27.9 %
Commercial real estate loans                      91,071    67.6            84,133      69.0
Automobile loans                                       -       -             1,463       1.2
Consumer loans                                     1,115     0.8             1,250       1.0
Residential real estate loans held-for-sale          737     0.6             1,019       0.9
                                                 -------   -----           -------     -----
                                                 134,647   100.0           121,922     100.0
    Less:
         Unearned income                               6                        42
         Deferred fees, net                          616                       569
         Allowance for loan losses                 1,913                     1,475
                                                 -------                   -------
                                                $132,112                  $119,836
                                                 =======                   =======
</TABLE>








                                        8
<PAGE>

5.  RECENT DEVELOPMENTS

On May 24,  2000 the Board of  Directors  of the  Company  declared a  quarterly
dividend of eight cents ($0.08) per common share.  The dividend was paid on July
3, 2000, to shareholders' of record as of June 23, 2000.

On April 15,  1999,  the  Company  announced  the  commencement  of a program to
repurchase up to 10% of it's  outstanding  common stock.  No time limit has been
placed on the duration of the stock  repurchase  program.  Subject to applicable
securities laws, such purchases will be made at times and in amounts the Company
deems  appropriate  and may be  discontinued  at any time.  As of June 30, 2000,
150,000 shares had been  repurchased by the Company at an aggregate cost of $1.7
million.

                                        9
<PAGE>

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

General

Long Island Commercial Bank, the subsidiary of Long Island Financial Corp., is a
New York state- chartered  commercial bank, founded in 1989, which is engaged in
commercial  banking in Islandia,  New York, and the  surrounding  communities of
Suffolk and Nassau  counties.  The Bank offers a broad range of  commercial  and
consumer banking services, including loans to and deposit accounts for small and
medium-sized   businesses,   professionals,   high  net  worth  individuals  and
consumers. The Bank is an independent local bank, emphasizing personal attention
and  responsiveness to the needs of its customers.  The Bank's senior management
has  substantial  banking  experience,  and senior  management  and the Board of
Directors  of the  Bank  have  extensive  commercial  and  personal  ties to the
communities in Nassau and Suffolk Counties, New York.

Financial Condition

The Company's total assets were $275.1 million as of June 30, 2000,  compared to
$331.1 million at December 31, 1999. The decline in cash and cash equivalents of
$20.8 million,  or 74.6%, was attributable to seasonal  municipal deposits which
were not on deposit at June 30, 2000.  Loans, net,  increased $12.3 million,  or
10.2%,  from $119.8  million at December 31, 1999, to $132.1 million at June 30,
2000,  reflecting  a $14.6  million  increase  in  commercial  real  estate  and
commercial and industrial  loans,  offset in part by a $1.5 million  decrease in
the automobile loan  portfolio.  Securities  available-for-sale  decreased $48.4
million or 28.5% as a portion of the  proceeds of the  maturing  short term U.S.
Government  and agency  obligations  purchased in December 1999 were used to pay
the maturing  seasonal  municipal  deposits.  Prepaid  expenses and other assets
increased $ 1.2 million as a result of an  increase  in  deferred  tax  benefits
relating to the  securities  portfolio  and  increases in estimated  federal and
state income taxes payable.

Total  deposits  decreased  $60.9  million,  or 22.6%,  from  $269.7  million at
December  31, 1999 to $208.8  million at June 30, 2000,  primarily  reflecting a
decrease in NOW and money market deposits.  The decrease in NOW and money market
deposits of $66.4 million, or 64.4%, from $103.1 million at December 31, 1999 to
$36.8  million at June 30,  2000,  is  attributable  to the  timing of  seasonal
municipal  deposits  which were not on deposit at June 30, 2000.  The effects of
those  declines were offset in part by a $2.7 million,  or 7.4% increase in core
demand deposits and a $2.2 million,  or 7.7%,  increase in core savings deposits
from December 31, 1999 to June 30, 2000.

Total stockholders'  equity decreased $116,000 to $18.2 million at June 30, 2000
primarily due to a $636,000 increase in accumulated other  comprehensive loss on
securities   available-for-sale,   dividends  declared  of  $261,000,   and  the
repurchase of 20,000  shares,  or $220,000,  of common stock.  Offsetting  these
events was net income of $1.0 million for the six months ended June 30, 2000.

                                       10
<PAGE>

Analysis of Net Interest Income

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

The following  tables sets forth certain  information  relating to the Company's
consolidated average balance sheets and its consolidated  statements of earnings
for the three months and six months ended June 30, 2000,  and 1999, and reflects
the   average   yield  on   interest-earning   assets   and   average   cost  of
interest-bearing  liabilities for the periods  indicated.  Such yields and costs
are derived by dividing income or expense, annualized, by the average balance of
interest-earning assets or interest-bearing liabilities,  respectively.  Average
balances are derived from average daily  balances.  Average  balances and yields
include non-accrual loans although they are not material.

                                       11
<PAGE>
<TABLE>
<CAPTION>

                                                                   Three Months Ended June 30,
                                             ------------------------------------------------------------------------
                                                            2000                                    1999
                                             --------------------------------        --------------------------------
                                                                      Average                                 Average
                                             Average                  Yield /        Average                  Yield /
                                             Interest       Cost      Balance        Interest       Cost      Balance
                                             --------       ----      -------        --------       ----      -------
                                                                      (Dollars in thousands)
<S>                                          <C>           <C>         <C>           <C>           <C>         <C>

Interest earning assets:
     Federal funds sold and
       interest-earning deposits             $    512      $    8      6.25 %        $ 10,417      $  124      4.76 %
     Securities held-to-maturity and
       available-for-sale, net (1)            145,048       2,309      6.37           151,330       2,307      6.10
     Municipal obligations (2)                  1,167          17      5.83             2,578          40      6.21
     Loans receivable, net (3)                129,630       2,925      9.03           100,818       2,164      8.59
                                              -------       -----                     -------       -----
          Total interest-earning assets       276,357       5,259      7.61           265,143       4,635      6.99
Non-interest-earning assets (4)                18,520                                  20,367
                                              -------                                 -------
Total assets                                 $294,877                                $285,510
                                              =======                                 =======

Interest-bearing liabilities:
     Savings deposits                        $ 30,214      $  279      3.69          $ 21,737      $  171      3.15
     NOW and money market deposits             52,767         310      2.35            60,395         289      1.91
     Certificates of deposit                  103,625       1,543      5.96           104,567       1,428      5.46
                                              -------       -----                     -------       -----
         Total interest-bearing deposits      186,606       2,132      4.57           186,699       1,888      4.05
     Borrowed funds                            46,610         604      5.18            41,195         503      4.88
                                              -------       -----                     -------       -----
         Total interest-bearing liabilities   233,216       2,736      4.69           227,894       2,391      4.20
Other non-interest bearing liabilities         43,554                                  36,507
                                              -------                                 -------
Total liabilities                             276,770                                 264,401
Stockholders' Equity                           18,107                                  21,109
                                              -------                                 -------
Total liabilities and
  stockholders' equity                       $294,877                                $285,510
                                              =======                                 =======

Net interest income/
  interest rate spread (5)                                 $2,523      2.92 %                      $2,244      2.79 %
                                                            =====      ----                         =====      ====

Net interest margin (6)                                                3.65 %                                  3.39 %
                                                                       ----                                    ====

Ratio of interest-earning assets to
  interest-bearing liabilities                                         1.18                                    1.16
                                                                       ====                                    ====

(1) Securities, net exclude municipal obligations.
(2) Interest income and yields are presented on a fully-taxable equivalent basis
    using the Federal statutory income tax rate of 34%.
(3) Amount is net of residential real estate loans held-for-sale,  deferred loan
    fees, allowance for loan losses and includes non-performing loans.
(4) Unrealized  gains/(losses) on available-for-sale  securities are recorded in
    other assets.
(5) Net interest  rate spread  represents  the  difference  between the yield on
    interest-earning assets and the cost of interest-bearing liabilities.
(6) Net  interest  margin  represents  net  interest  income  divided by average
    interest-earning assets.

</TABLE>













                                       12
<PAGE>
<TABLE>
<CAPTION>

                                                                      Six Months Ended June 30,
                                              ------------------------------------------------------------------------
                                                            2000                                     1999
                                              --------------------------------         -------------------------------
                                                                       Average                                 Average
                                              Average                  Yield /         Average                 Yield /
                                              Balance     Interest      Cost           Balance     Interest     Cost
                                              -------     --------     -------         -------     --------    -------
                                                                        (Dollars in thousands)
<S>                                          <C>           <C>          <C>           <C>           <C>         <C>

Interest earning assets:
     Federal funds sold and
       interest-earning deposits             $    729      $    23      6.31 %        $ 11,274      $  264      4.68 %
     Securities, net (1)                      160,789        5,004      6.22           148,280       4,516      6.09
     Municipal obligations (2)                  1,167           34      5.83             7,688         240      6.24
     Loans receivable, net (3)                126,100        5,633      8.93            98,861       4,227      8.55
                                              -------       ------                     -------       -----
          Total interest-earning assets       288,785       10,694      7.41           266,103       9,247      6.95
Non-interest-earning assets (4)                17,985                                   18,769
                                              -------                                  -------
Total assets                                  306,770                                 $284,872
                                              =======                                  =======


Interest-bearing liabilities:
     Savings deposits                        $ 29,774      $   545      3.66          $ 19,278      $  302      3.13
     NOW and money market deposits             56,924          650      2.28            64,234         614      1.91
     Certificates of deposit                  103,556        3,013      5.82           105,522       2,904      5.50
                                              -------       ------                     -------       -----
          Total interest-bearing deposits     190,254        4,208      4.42           189,034       3,820      4.04
     Borrowed funds                            56,507        1,483      5.25            38,840         945      4.87
                                              -------       ------                     -------       -----
          Total interest-bearing liabilities  246,761        5,691      4.61           227,874       4,765      4.18
Other non-interest bearing liabilities         41,930                                   35,569
                                              -------                                  -------
Total liabilities                             288,691                                  263,443
Stockholders' Equity                           18,079                                   21,429
                                              -------                                  -------
Total liabilities and
  stockholders' equity                        306,770                                 $284,872
                                              =======                                  =======

Net interest income/
  interest rate spread (5)                                 $ 5,003      2.80 %                      $4,482      2.77 %
                                                            ======      ====                         =====      ====

Net interest margin (6)                                                 3.46 %                                  3.37 %
                                                                        ====                                    ====

Ratio of interest-earning assets to
  interest-bearing liabilities                                          1.17                                    1.17
                                                                        ====                                    ====

(1) Securities, net exclude municipal obligations.
(2) Interest income and yields are presented on a fully-taxable equivalent basis
    using  the  Federal  statutory  income  tax rate of 34%.
(3) Amount is net of residential real estate loans held-for-sale,  deferred loan
    fees and allowance for loan losses and includes non-performing loans.
(4) Unrealized gains/(losses) on  available-for-sale securities are  recorded in
    other assets.
(5) Net interest  rate spread  represents  the  difference  between the yield on
    interest-earning  assets and the cost of interest-bearing  liabilities.
(6) Net  interest  margin  represents  net  interest  income  divided by average
    interest-earning assets.
</TABLE>

                                       13
<PAGE>

Comparison of Operating Results for the Three Months
Ended June 30, 2000 and 1999

General

The Company  reported net income of $549,000,  or basic and diluted earnings per
share of $.33 for the quarter  ended June 30,  2000,  compared to  $499,000,  or
basic and  diluted  earnings  per share of $.28 for the prior year  period.  The
increase in net income was  attributable  primarily to increases in net interest
income after provision for loan losses of $437,000,  or 21.0%, which were offset
in part by increases in other operating expenses of $199,000, or 10.4%.

Interest Income

Interest income, on a fully-taxable equivalent basis, increased 624,000, or 13.5
%, from $4.6 million for the three  months ended June 30, 1999,  to $5.3 million
for the three months ended June 30, 2000.  The increase was  attributable  to an
increase  in the  average  balance  of total  interest-earning  assets  of $11.2
million,  or 4.2%, from $265.1 million for the three months ended June 30, 1999,
to $276.4 million for the three months ended June 30, 2000. The average  balance
of securities, net, (exclusive of municipal obligations) decreased $6.3 million,
or 4.2%,  but average  yield  increased  27 basis  points to 6.37% for the three
months  ended June 30,  2000,  compared to 6.10% for the 1999  period.  The $1.4
million decline in the average balance of municipal  obligations,  for the three
months ended June 30,  2000,  from $2.6  million for the  comparable  prior year
period,  resulted  from the sale of  approximately  $11.8  million in  municipal
obligations  during the three months ended June 30, 1999. The proceeds from that
sale  were  reinvested  in higher  earning  assets,  primarily  bank  owned life
insurance and available-for-sale securities.  The average balance of loans, net,
increased $28.8 million, or 28.6% from $100.8 million for the three months ended
June 30, 1999, to $129.6 million for the 2000 period. The average yield on loans
receivable,  net,  increased 44 basis points from 8.59% for the 1999 period,  to
9.03% for the three  months  ended June 30,  2000.  The  average  yield on total
interest-earning assets increased from 6.99% for the three months ended June 30,
1999, to 7.61% for the three months ended June 30, 2000 as a result of increased
market interest rates.

Interest Expense

Interest expense increased  $345,000,  or 14.4%, from $2.4 million for the three
months ended June 30, 1999,  to $2.7 million for the three months ended June 30,
2000,  primarily as a result of a $5.3  million or 2.3%  increase in the average
balance of total  interest-bearing  liabilities from $227.9 million for the 1999
period to $233.2 million for the three months ended June 30, 2000. The increased
interest  expense  resulted  from an increase of $5.4  million,  or 13.1% in the
average  balance of borrowed  funds.  The average rate paid on  interest-bearing
deposits  increased 52 basis points from 4.05% paid for the 1999 period to 4.57%
paid for the three months ended June 30,  2000.  The average  balance of savings
deposits increased by $8.5 million, or 39.0%, and the average balance of NOW and
money market deposits decreased by $7.6 million, or 12.6% from period to period.
The average balance of certificates of deposit decreased $942,000 as the Company
continued to focus on reducing  its cost of funds.  The average cost of borrowed
funds increased 30 basis points from 4.88% for the 1999 period, to 5.18% for the
three  months  ended June 30, 2000,  due to higher  market  short term  interest
rates.

                                       14
<PAGE>

Net Interest Income

Net interest income on a fully-taxable  equivalent  basis increased by $279,000,
or 12.4%,  from $2.2 million for the three  months ended June 30, 1999,  to $2.5
million for the three  months  ended June 30,  2000.  The average  cost of total
interest-bearing liabilities for the period increased 49 basis points from 4.20%
in  the1999  period  to 4.69% in the 2000  period.  The  average  yield on total
interest-earning  assets for the period  increased  62 basis point from 6.99% in
the 1999  period  to 7.61% in the 2000  period.  The net  interest  rate  spread
increased by 13 basis points from 2.79% in the 1999 period, to 2.92% in the 2000
period.

Provision for Loan Losses

The Company had no provision  for loan losses for the three months ended June 30
2000, compared to a $150,000 provision for the three month period ended June 30,
1999. The absence of a provision for loan losses for the three months ended June
30, 2000 reflects  management's  qualitative and quantitative  assessment of the
loan portfolio,  net charge-offs and collection of delinquent loans. At June 30,
2000 and December  31,  1999,  the  allowance  for loan losses  amounted to $1.9
million and $1.5 million,  respectively.  The increase in the allowance for loan
losses at June 30, 2000 was primarily  attributable to the Company  successfully
recovering  $397,000 on a commercial and industrial loan previously charged off.
The  allowance  for loan losses as a percentage  of loans was 1.43% and 1.22% at
June 30, 2000 and 1999, respectively.

The  determination of the amount of the allowance for loan losses is based on an
analysis of the loan  portfolio  and reflects an amount which,  in  management's
judgement  is  adequate  to provide for  probable  loan  losses in the  existing
portfolio.  This  analysis  considers,  among  other  things,  present and known
inherent  risks in the  portfolio,  adverse  situations  which  may  affect  the
borrower's  ability  to  repay,  overall  portfolio  quality,  and  current  and
prospective economic conditions.  While management uses available information to
provide for loan  losses,  future  additions to the  allowance  may be necessary
based on  changes  in  economic  conditions.  In  addition,  various  regulatory
agencies,  as an integral part of the examination  process,  periodically review
the Company's  allowance for loan losses.  Such agencies may require the Company
to  recognize   additions  to  the  allowance  based  upon  their  judgement  of
information available to them at the time of their examination.

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 will be fully  collectable and a consistent  record of performance
has been demonstrated.

                                       15
<PAGE>

                                               June 30, 2000   December 31, 1999
                                               -------------   -----------------
                                                      (In thousands)

Non-accrual loans:
     Commercial and industrial loans               $  208                42
     Automobile loans                                   -                32
     Consumer loans                                    58               105
                                                    -----               ---
          Total non-accrual loans                     266               179

     Loans contractually past due 90 days or
       more, other than non-accruing (2)              209                 -
                                                     ----               ---

          Total non-performing loans               $  475               179
                                                     ----               ---

Allowance for loan losses as a percentage
  of loans (1)                                       1.43 %            1.22 %
Allowance for loan losses as a percentage
  of total non-performing loans                    402.73 %          824.02 %
Non-performing loans as a percentage of loans (1)     .35 %             .15 %


(1) Loans include loans receivable, net excluding the allowance for loan losses.

(2) Excludes $231,000 of  loans at  December 31, 1999, which  have matured, how-
    ever, are  current  with  respect  to  scheduled  periodic  principal and/or
    interest  payments.   The  Company is  in  the  process  of  renewing  these
    obligations and/or awaiting anticipated repayment.  There were no loans con-
    tractually past due more than 90 days in a matured status at  June 30, 2000.

Other Operating Income

Other operating income decreased  $168,000,  or 28.2%, to $428,000 for the three
months  ended June 30,  2000.  Service  charges on  deposit  accounts  increased
$54,000,  or 32.3%,  reflecting  an overall  increase in the Bank's  deposit fee
structure,  growth  in the  depositor  base,  and  the  introduction  of new and
electronic  banking  services.  Net gain on sale of residential  loans decreased
$135,000 or 74.2% as a result of overall  decrease in residential  mortgage loan
production.  Higher  market  interest  rates have  resulted in an industry  wide
slowdown in residential  lending.  In addition,  the Company  benefitted from an
$88,000 gain on the sale of  securities  in the three months ended June 30, 1999
and there were no securities sales in the three months ended June 30, 2000.

Other Operating Expense

Other operating expenses increased $199,000, or 10.4%, from $1.9 million for the
three months ended June 30, 1999, to $2.1 million in the three months ended June
30, 2000.  Increases in salaries and employee  benefits,  premises and equipment
expense, and other expense for the three months ended June 30, 2000 are a result
of  the  Bank's  overall   growth  through  its  increased   sales  efforts  and
introduction of new products and services.

Income Taxes

Income taxes  increased  $20,000,  or 7.6%,  from  $262,000 for the three months
ended June 30, 1999,  to $282,000 for the three months ended June 30, 2000.  The
increase is  attributable  to the increase in income before  income  taxes.  The
effective tax rate for the three months ended June 30, 2000 was 33.9%,  compared
to 34.4% for the three months ended June 30, 1999.

                                       16
<PAGE>

Comparison of Operating Results for the Six Months Ended June 30, 2000 and 1999

General

The Company  reported net income of $1.0 million,  or basic and diluted earnings
per share of $.61 for the six months ended June 30, 2000,  compared to $831,000,
or basic and diluted  earnings of $.47 per share for the prior year period.  The
increase in net income was attributable primarily to an increase in net interest
income after provision for loan losses of $735,000,  or 17.9%,  which was offset
in part by increases in other operating expenses of $406,000, or 10.9%.

Interest Income

Interest income, on a fully-taxable equivalent basis, increased $1.4 million, or
15.6 %, from $9.2  million  for the six  months  ended June 30,  1999,  to $10.7
million for the six months ended June 30, 2000. The increase was attributable to
an  increase in the average  balance of total  interest-earning  assets of $22.7
million, or 8.5%, from $266.1 million for the six months ended June 30, 1999, to
$288.8  million for the six months ended June 30, 2000.  The average  balance of
securities,  net, (exclusive of municipal  obligations) increased $12.5 million,
or 8.4%,  and returned a 13 basis point  increase in the average  yield to 6.22%
for the six months ended June 30,  2000,  compared to 6.09% for the 1999 period.
The $6.5 million decline in the average balance of municipal obligations for the
six months ended June 30, 2000 from $7.7 million for the  comparable  prior year
period,  resulted  from the sale of  approximately  $11.8  million in  municipal
obligations  during the second quarter of 1999. The proceeds from that sale were
reinvested in higher  earning  assets,  primarily  bank owned life insurance and
available-for-sale  securities.  The average  balance of loans,  net,  increased
$27.2  million,  or 27.6% from $98.9  million for the six months  ended June 30,
1999,  to  $126.1  million  for the  2000  period.  The  average  yield on loans
receivable,  net,  increased 38 basis points from 8.55% for the 1999 period,  to
8.93%  for  the  six  months  ended  June  30,  2000.   The  average   yield  on
interest-earning  assets  increased from 6.95% for the six months ended June 30,
1999,  to 7.41% for the six months  ended June 30, 2000 as a result of increased
market interest rates.

Interest Expense

Interest expense  increased  $926,000,  or 19.4%,  from $4.8 million for the six
months  ended June 30,  1999,  to $5.7 million for the six months ended June 30,
2000,  primarily as a result of a $18.9  million or 8.3% increase in the average
balance of total  interest-bearing  liabilities from $227.9 million for the 1999
period to $246.8  million for the six months ended June 30, 2000.  The increased
interest  expense  resulted from an increase of $17.7  million,  or 45.5% in the
average  balance of borrowed  funds.  The average rate paid on  interest-bearing
deposits  increased 38 basis points from 4.04% paid for the 1999 period to 4.42%
paid for the six month  period  ended  June 30,  2000.  The  average  balance of
savings deposits  increased by $10.5 million,  or 54.4%, and the average balance
of NOW and money market deposits decreased by $7.3 million, or 11.4% from period
to period. The average balance of certificates of deposit decreased $2.0 million
as the Company  continued  to focus on reducing  its cost of funds.  The average
cost of borrowed funds increased 38 basis points from 4.87% for the 1999 period,
to 5.25% for the six months ended June 30, 2000, due to higher market short term
interest rates.

                                       17
<PAGE>

Net Interest Income

Net interest income on a fully-taxable  equivalent  basis increased by $521,000,
or11.6%,  from $4.5  million  for the six months  ended June 30,  1999,  to $5.0
million  for the six  months  ended June 30,  2000.  The  average  cost of total
interest-bearing liabilities for the period increased 43 basis points from 4.18%
in  the1999  period  to  4.61%  in  the  2000  period.   The  average  yield  on
interest-earning  assets for the period  increased  46 basis point from 6.95% in
the 1999  period  to 7.41% in the 2000  period.  The net  interest  rate  spread
increased by 3 basis points from 2.77% in the 1999 period,  to 2.80% in the 2000
period.

Provision for Loan Losses

The  Company's  provision  for loan losses was $150,000 for the six months ended
June 30, 2000 as compared to $300,000  for the six months  ended June 30,  1999.
The  provision  for loan losses is based on analysis of the loan  portfolio  and
reflects an amount which, in  management's  judgement is adequate to provide for
probable loan losses in the existing portfolio.

Other Operating Income

Other  operating  income  decreased  $106,000,  or 11.6%, to $807,000 or the six
month period ended June 30, 2000.  Service charges on deposit accounts increased
$111,000,  or 35.8%,  reflecting an overall  increase in the Bank's  deposit fee
structure,  growth  in the  depositor  base,  and  the  introduction  of new and
electronic  banking  services.  Net gain on sale of residential  loans decreased
$226,000 or 69.5% as a result of overall  decrease in residential  mortgage loan
production.  Higher  market  interest  rates have  resulted in an industry  wide
slowdown in residential  lending.  In addition,  the Company  benefitted from an
$88,000 gain on the sale of securities in the six months ended June 30, 1999 and
there were no securities sales in the six months ended June 30, 2000..

Other Operating Expense

Other operating expenses increased $406,000, or 10.9%, from $3.7 million for the
six months ended June 30, 1999, to $4.1 million in the six months ended June 30,
2000.  Increases  in salaries  and employee  benefits,  premises  and  equipment
expense,  and other  expense for the six months ended June 30, 2000 are a result
of  the  Bank's  overall   growth  through  its  increased   sales  efforts  and
introduction of new products and services.

Income Taxes

Income taxes increased $53,000, or 11.7%, from $452,000 for the six months ended
June 30, 1999, to $505,000 for the six months ended June 30, 2000.  The increase
is attributable to the increase in income before income taxes. The effective tax
rate for the six months ended June 30, 2000 was 33.5%, compared to 35.2% for the
six months ended June 30, 1999.

                                       18
<PAGE>

Recent Accounting Pronouncements

In June 1998, the Financial  Accounting Standards Board ("FASB") issued SFAS No.
133,  "Accounting  for  Derivative  Instruments  and Hedging  Activities."  This
statement  requires  companies  to record  derivatives  on the balance  sheet as
assets or liabilities, measured at fair value. The accounting for changes in the
fair value of a derivative depends on the intended use of the derivative and its
specific designation.

In  June  1999,  the   FASB  issued  SFAS No. 137,  "Accounting  for  Derivative
Instruments  and  Hedging  Activities-Deferral  of  the  Effective  Date of FASB
Statement  No. 133--an  amendment  of  FASB  Statement No. 133."  This statement
delays the  effective date  for one year of SFAS No. 133, to fiscal years begin-
ning after June 15, 2000  SFAS No.'s 133 and 137 apply  to quarterly  and annual
financial statements. The Company does not believe that there will be a material
impact on its financial condition or results of operations  upon the adoption of
SFAS No. 133 and No. 138.

In   June  2000  the  FASB  issued  SFAS  No. 138, "Accounting  for   Derivative
Instruments and Certain Hedging Activities-An  Amendment of  FASB  Statement No.
133," or  SFAS  No.  138.   SFAS  No. 138  amends  the accounting  and reporting
standards of SFAS No. 133 for certain derivative instruments and certain hedging
activities.  SFAS No. 138 will be adopted concurrently with SFAS No. 133.

Liquidity

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

The primary  investing  activities of the Company are the purchase of securities
available-for-sale  and the origination of loans.  During each of the six months
ended June 30, 2000,  and 1999, the Company's  purchases of securities  were all
classified  available-for-sale  and totaled $389.6  million and $211.2  million,
respectively.  Loan originations,  net of principal repayments on loans, totaled
$12.8  million and $11.8  million,  for the six months ended June 30, 2000,  and
1999,  respectively.  Those  activities were funded  primarily by borrowings and
principal repayments and maturities on securities.

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 conversion of investment  securities.  When
cash  requirements  increase  faster  than  cash is  generated,  either  through
increased loan demand or withdrawal of deposited  funds, the Company can arrange
for the sale of loans,  liquidate  available-for-sale  securities and access its
lines of credit,  totaling $5.5 million with unaffiliated financial institutions
which enable it to borrow federal funds on an unsecured basis. In addition,  the
Company has  available  lines of credit  with the Federal  Home Loan Bank of New
York (FHLB) equal to 9.5% of the Company's assets at June 30, 2000, which enable

                                       19
<PAGE>

it to borrow funds on a secured  basis.  The Company  could also engage in other
forms of borrowings, including reverse repurchase agreements.

At June 30, 2000,  the Company's  primary  borrowings  consisted of  convertible
advances from the FHLB. The  convertible  feature of these  advances  allows the
FHLB,  at a  specified  call date and  quarterly  thereafter,  to convert  these
advances into replacement funding for the same or lesser principal amount, based
on any advance then offered by the FHLB, at then current  market  rates.  If the
FHLB  elects to convert  these  advances,  the Bank may repay any portion of the
advances  without  penalty.  These  convertible  advances are secured by various
mortgage-backed  and callable agency securities.  At June 30, 2000,  convertible
advances outstanding were as follows:

          Interest          Call          Contractual
           Amount           Rate              Date            Maturity
          --------          ----          -----------         --------
        $14,000,000         5.49%         02/19/2003         02/19/2008
        $10,000,000         4.24%         10/08/2000         10/08/2008
        $15,000,000         4.59%         01/21/2002         01/21/2009

Management  of the Company has set minimum  liquidity  level of 10% as a target.
The average of the  Company's  liquid  assets (cash and due from banks,  federal
funds sold,  interest  earning  deposits with other financial  institutions  and
investment securities available-for-sale, less securities pledged as collateral)
as a percentage of average  assets of the Company  during the three months ended
June 30, 2000, was 20.7%.

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 regulators,  that, if undertaken, could have
a direct material effect on the Bank's financial statements.  As of December 31,
1999,  the  most  recent   notification  from  the  federal  banking  regulators
categorized  the Bank as well  capitalized  under the  regulatory  framework for
prompt corrective action.

In  accordance  with the  requirements  of 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, 2000, the Bank exceeded those
requirements  with a leverage  capital ratio,  and risk- based capital ratio and
total-risk based capital ratio of 7.30%, 13.23%, and 14.38%, respectively.

                                       20
<PAGE>

Item 3.  Quantitative and Qualitative Disclosures About Market Risk

The principal objective of the Company's interest rate management is to evaluate
the interest rate risk inherent in certain balance sheet accounts, determine the
level of risk  appropriate  given the  Company's  business  strategy,  operating
environment,  capital and liquidity requirements and performance objectives, and
manage the risk consistent  with guidelines  approved by the Board of Directors.
Through such  management,  the Company seeks to reduce the  vulnerability  of it
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 the market interest rates and its ability
to manage its assets and liabilities in response to such movements.

At June 30, 2000,  83.45% of the Company's  gross loans had adjustable  interest
rates and its loan portfolio had an average  weighted  maturity of 7.8 years. At
such date,  $11.6 million,  or 9.6%, of the Company's  securities had adjustable
interest rates, and its securities  portfolio had a weighted average maturity of
6.4 years.  At June 30, 2000, the Company had $56.3 million of  certificates  of
deposit with  maturities  of one year or less and $27.0 million of deposits over
$100,000,  which tend to be less  stable  sources of funding as compared to core
deposits and represented  38.8% of the Company's  interest-bearing  liabilities.
Due to the  Company's  level  of  shorter  term  certificates  of  deposit,  the
Company's  cost of  funds  may  increase  at a  greater  rate in a  rising  rate
environment than if it had a greater amount of core deposits which, in turn, may
adversely  affect net interest income and net income.  Accordingly,  in a rising
interest rate environment, the Company's interest-bearing liabilities may adjust
upwardly  more rapidly than the yield on its  adjustable-rate  loans,  adversely
affecting the Company's  net interest rate spread,  net interest  income and net
income.

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

At June 30,  2000,  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:

                                       21
<PAGE>

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

      200             $   304          2.61 %        $(2,839)         (14.35) %
      100                 199          1.71              646            3.27
    Static                  -             -                -               -
     (100)                (58)         (.50)           6,112           30.90
     (200)               (299)        (2.57)           8,164           41.27














                                       22
<PAGE>

                           PART II - OTHER INFORMATION

Item 1.  Legal Proceedings

         Not applicable.

Item 2.  Changes in Securities and Use of Proceeds

         Not applicable.

Item 3.  Defaults Upon Senior Securities

         Not applicable.

Item 4.  Submission of Matters to a Vote of Security Holders

The Company's Annual Meeting of Stockholders was held on April 26, 2000, and the
following individuals were elected as Directors for a term of three years each:

                             Votes         Votes                        Broker
                              For        Withheld     Abstentions     Non-Votes
                             -----       --------     -----------     ---------

John L. Ciarelli, Esq.     1,224,925      60,900           -              -
Waldemar Fernandez         1,224,925      60,900           -              -
Werner S. Neuberger        1,224,925      60,900           -              -
Sally Ann Slacke           1,224,925      60,900           -              -
John C. Tsunis, Esq.       1,224,925      60,900           -              -

The terms of the following Directors continued after the Annual Meeting:

Harvey Auerbach, Donald Del Duca, Perry B. Duryea, Jr., Frank J. Esposito, Roy
M. Kern, Sr., Gordon A. Lenz, Walter J. Mack, MD, Douglas C. Manditch,
Thomas F. Roberts III, Alfred Romito.

Item 5.  Other Information

         Not applicable.

Item 6.  Exhibits and Reports on Form 8-K

         a.  Exhibits

         11.0  Statement Re: Computation of Per Share Earnings
         27.0  Financial Data Schedule

                                       23
<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 11, 2000                      By: /s/ Douglas C. Manditch
                                                  Douglas C. Manditch
                                                  President and Chief
                                                  Executive Officer


Date:    August 11, 2000                      By: /s/ Thomas Buonaiuto
                                                  Thomas Buonaiuto
                                                  Vice President and Treasurer

                                       24
<PAGE>
<TABLE>
<CAPTION>

Exhibit 11.0  Computation Of Per Share Earnings

Long Island Financial Corp.
Statement Re: Computation of Per Share Earnings
(In thousands, except for share amounts)

                                         Three Months Ended June 30,         Six Months Ended June 30,
                                         ---------------------------         -------------------------
                                             2000           1999                2000           1999
                                             ----           ----                ----           ----
<S>                                     <C>              <C>                 <C>            <C>

Net income                               $      549            499               1,001            831

Weighted average shares outstanding       1,639,293      1,776,326           1,642,810      1,776,160

Basic and diluted earnings per share     $      .33            .28                 .61            .47
                                                ===            ===                 ===            ===

</TABLE>