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

                                    FORM 10-Q
 (Mark One)
     _X_            Quarterly Report Pursuant to Section 13 or 15(d) of
                    the Securities Exchange Act of 1934
                        For the quarterly period ended March 31, 2001 OR

     _  _               Transition Report Pursuant to Section 13 or 15(d) of
                              the Securities Exchange Act of 1934
                        For the transition period from ______ to _______

                             Commission File No.: 0-29826

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

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

 One Suffolk Square, 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 1,464,426  shares of Common Stock  outstanding as of May 10,
2001.

<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 March 31, 2001
                 and December 31, 2000                                       2
           Consolidated Statements of Earnings for the Three Months
                 Ended March 31, 2001 and 2000                               3
           Consolidated Statement of Changes in Stockholders' Equity
                 for the Three Months Ended March 31, 2001                   4
           Consolidated Statements of Cash Flows for the Three Months
                 Ended March 31, 2001 and 2000                               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       17

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

ITEM 1.    Legal Proceedings                                                19
ITEM 2.    Changes in Securities and Use of Proceeds                        19
ITEM 3.    Defaults Upon Senior Securities                                  19
ITEM 4.    Submission of Matters to a Vote of Security Holders              19
ITEM 5.    Other Information                                                19
ITEM 6.    Exhibits and Reports on Form 8-K                                 19
           Signatures                                                       20

================================================================================
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>

PART I - FINANCIAL INFORMATION

Item  1. Consolidated Financial Statements

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

<TABLE>
<CAPTION>
                                                                                  March 31,    December 31,
                                                                                     2001          2000
                                                                                 -----------   ------------
                                                                                 (Unaudited)
<S>                                                                              <C>              <C>
Assets:
-------
Cash and due from banks .......................................................  $  7,614         14,652
Interest earning deposits .....................................................       180             56
Federal funds sold ............................................................    22,500          1,500
                                                                                 --------        -------
              Total cash and cash equivalents .................................    30,294         16,208

Securities held-to-maturity (fair value $9,444 and $4,736, respectively) ......     9,139          4,754
Securities available-for-sale, at fair value ..................................    88,698        133,562
Securities pledged for repurchase agreements, at fair value ...................    44,324         31,106
Loans, net of unearned income and deferred fees ...............................   148,592        136,725
Less allowance for loan losses ................................................    (1,872)        (1,872)
                                                                                 --------        -------
              Loans, net ......................................................   146,720        134,853
Premises and equipment, net ...................................................     1,918          1,868
Accrued interest receivable ...................................................     2,191          1,911
Bank owned life insurance .....................................................     6,271          6,197
Prepaid expenses and other assets .............................................     1,699          2,475
                                                                                 --------        -------
              Total assets ....................................................  $331,254        332,934
                                                                                 ========        =======


Liabilities and Stockholders' Equity:
-------------------------------------
Deposits:
    Demand deposits ...........................................................  $ 43,441         45,592
    Savings deposits ..........................................................    36,117         32,849
    NOW and money market deposits .............................................    41,616         82,003
    Time certificates issued in excess of $100,000 ............................    48,614         35,228
    Other time deposits .......................................................    86,270         77,517
                                                                                 --------        -------
              Total deposits ..................................................   256,058        273,189

Borrowed funds ................................................................    43,000         29,000
Accrued expenses and other liabilities ........................................     4,347          3,984
                                                                                 --------        -------
              Total liabilities ...............................................   303,405        306,173
                                                                                 --------        -------
Guaranteed preferred beneficial interest in junior subordinated
    debentures ................................................................     7,500          7,500

Stockholders' equity:
    Common  stock  (par value $.01 per  share; 10,000,000 shares,
    authorized; 1,776,326 shares issued; 1,464,426 and 1,479,426
    outstanding, respectively) ................................................        18             18
    Surplus ...................................................................    20,185         20,185
    Accumulated surplus .......................................................     4,266          3,839
    Accumulated other comprehensive loss ......................................      (290)        (1,167)
    Treasury stock, at cost, (311,900 shares in 2001; 296,900
        shares in 2000) .......................................................    (3,830)        (3,614)
                                                                                 --------        -------
              Total stockholders' equity ......................................    20,349         19,261
                                                                                 --------        -------
    Total liabilities and stockholders' equity ................................  $331,254        332,934
                                                                                 ========        =======
</TABLE>

See accompanying notes to consolidated financial statements


                                       2
<PAGE>

                           LONG ISLAND FINANCIAL CORP.
                       Consolidated Statements of Earnings
                                   (Unaudited)
                        (In thousands, except share data)

                                                         For the Three Months
                                                            Ended March 31,
                                                            ---------------
                                                          2001          2000
                                                          ----          ----
Interest income:
     Loans                                            $     3,029          2,708
     Securities                                             2,755          2,707
     Federal funds sold                                       250             11
     Earning deposits                                           4              4
                                                      -----------    -----------
         Total interest income                              6,038          5,430
                                                      -----------    -----------
Interest expense:
     Savings deposits                                         283            266
     NOW and money market deposits                            387            340
     Time certificates issued in excess of $100,000           649            243
     Other time deposits                                    1,293          1,227
     Borrowed funds                                           533            879
                                                      -----------    -----------
         Total interest expense                             3,145          2,955
                                                      -----------    -----------
         Net interest income                                2,893          2,475

Provision for loan losses                                      --            150
                                                      -----------    -----------
         Net interest income after provision
         for loan losses                                    2,893          2,325
                                                      -----------    -----------

Other operating income:
     Service charges on deposit accounts                      259            200
     Net loss on sale of securities                           (53)            --
     Earnings on bank owned life insurance                     89             81
     Net gain on sale of residential loans                     66             52
     Other                                                     69             46
                                                      -----------    -----------
         Total other operating income                         430            379

Other operating expenses:
     Salaries and employee benefits                         1,164          1,030
     Occupancy expense                                        176            134
     Premises and equipment expense                           216            192
     Capital securities                                       199             --
     Other                                                    740            673
                                                      -----------    -----------
         Total other operating expenses                     2,495          2,029

         Income before income taxes                           828            675

Income taxes                                                  283            223
                                                      -----------    -----------
         Net income                                           545            452
                                                      ===========    ===========
Basic and diluted earnings per share                  $      0.37           0.27
                                                      ===========    ===========
Weighted average shares outstanding                     1,478,537      1,646,326
                                                      ===========    ===========

See accompanying notes to consolidated financial statements.


                                       3
<PAGE>

                           LONG ISLAND FINANCIAL CORP.
            Consolidated Statement of Changes in Stockholders' Equity
                    For the Three Months Ended March 31, 2001
                                   (Unaudited)
                        (In thousands, except share data)

<TABLE>
<CAPTION>
                                                                              Accumulated
                                                                                 Other
                                               Common  Accumulated           Comprehensive  Treasury
                                               Stock     Surplus    Surplus  (Loss)/Income    Stock     Total
                                               -----     -------    -------  -------------    -----     -----
<S>                                             <C>      <C>         <C>        <C>          <C>        <C>
Balance at December 31, 2000                    $18      20,185      3,839      (1,167)      (3,614)    19,261

Comprehensive income:
     Net income                                  --          --        545          --           --        545
         Other comprehensive income,
               net of tax:
         Unrealized gain in available-
              for-sale securities, net of
              reclassification adjustment        --          --         --         877           --        877
                                                                                                        ------

Total comprehensive income                       --          --         --          --           --      1,422

Dividends declared  ($.08 per common share)      --          --       (118)         --           --       (118)

Common stock repurchased (15,000 shares)         --          --         --          --         (216)      (216)
                                                ---      ------      -----        ----       ------     ------
Balance at March 31, 2001                       $18      20,185      4,266        (290)      (3,830)    20,439
                                                ===      ======      =====        ====       ======     ======
</TABLE>

See accompanying notes to consolidated financial statements.


                                       4
<PAGE>

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

<TABLE>
<CAPTION>
                                                                      For the Three Months
                                                                      --------------------
                                                                         Ended March 31,
                                                                         ---------------
                                                                         2001       2000
                                                                         ----       ----

<S>                                                                 <C>            <C>
Cash flows from operating activities:
     Net income                                                     $     545          452
     Adjustments to reconcile net income to net cash
         provided by operating activities:
              Provision for loan losses                                    --          150
              Depreciation and amortization                               163          187
              Amortization of premiums, net of discount accretion        (644)        (598)
              Net loss on sale of securities                               53           --
              Loans originated for sale, net of proceeds
                  from sales and gains                                   (135)         796
              Net deferred loan origination fees                            7           42
              Earnings on bank owned life insurance                       (89)         (81)
              Deferred income taxes                                       (10)         (14)
              Changes in other assets and liabilities:
                  Accrued interest receivable                            (280)        (363)
                  Prepaid expenses and other assets                       137          (20)
                  Accrued expenses and other liabilities                  363         (291)
                                                                    ---------      -------
         Net cash provided by operating activities                        110          260
                                                                    ---------      -------
Cash flows from investing activities:
     Purchases of securities held-to-maturity, available-for-sale    (544,773)     (87,325)
     Proceeds from the sale of securities available-for-sale           25,470           --
     Proceeds from maturities of securities                           544,999      132,000
     Principal repayments on securities                                 3,697        1,663
     Loan originations net of principal repayments                    (11,739)      (8,428)
     Purchase of premises and equipment                                  (213)         (99)
                                                                    ---------      -------
         Net cash provided by investing activities                     17,441       37,811
                                                                    ---------      -------

Cash flows from financing activities:
     Net decrease in demand deposit, savings, NOW,
         and money market accounts                                    (39,270)     (63,211)
     Net increase in certificates of deposit                           22,139        1,482
     Net increase in borrowed funds                                    14,000        4,300
     Payments for cash dividends                                         (118)        (132)
     Purchase of treasury stock                                          (216)          --
                                                                    ---------    ---------
         Net cash used in financing activities                         (3,465)     (57,561)
                                                                    ---------    ---------
         Net increase (decrease) in cash and cash equivalents          14,086      (19,490)

Cash and cash equivalents at beginning of period                       16,208       27,805
                                                                    ---------    ---------
Cash and cash equivalents at end of period                          $  30,294        8,315
                                                                    =========    =========
</TABLE>

                                                                     (Continued)


                                       5
<PAGE>

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

                                                       For the Three Months
                                                          Ended March 31,
                                                          ---------------
                                                          2001       2000
                                                          ----       ----

Supplemental disclosure of cash flow information
------------------------------------------------

Cash paid during the period for:
     Interest                                            $2,693      2,872
                                                         ======      =====
     Income taxes                                        $    -        361
                                                         ======      =====

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
subsidiaries,  LIF Statutory Trust I, Long Island  Commercial Bank (the "Bank"),
and its subsidiary, Long Island Commercial Capital Corporation.  All 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 three-month  period ended
March 31, 2001 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 2000 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>

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:

<TABLE>
<CAPTION>
                                                                 March 31, 2001             December 31, 2000
                                                                 --------------             -----------------
                                                             Amortized        Fair        Amortized       Fair
                                                               Cost           Value         Cost          Value
                                                             ---------        -----       ---------       -----
                                                                                (In thousands)
<S>                                                        <C>              <C>           <C>            <C>
    Held-to-maturity:
    Mortgage-backed securities:
       CMO                                                   $    263           261           263            254
    Corporate debt                                              8,876         9,183         4,491          4,482
                                                             --------       -------       -------        -------
       Total held-to-maturity                                $  9,139         9,444         4,754          4,736
                                                             ========       =======       =======        =======
    Available-for-sale:
    U.S. Government and Agency Obligations                   $ 37,995        37,786       117,364        115,945
    Mortgage-backed securities:
       GNMA                                                    83,438        83,127        36,559         35,963
       FHLMC                                                      725           739           969            982
       FNMA                                                     4,825         4,876         5,279          5,303
    Municipal obligations                                       1,168         1,168         1,167          1,149
                                                             --------       -------       -------        -------
       Total debt securities                                  128,151       127,696       161,338        159,342

    Equity securities - FHLB stock                              5,326         5,326         5,326          5,326
                                                             --------       -------       -------        -------
        Total securities available-for-sale                  $133,477       133,022       166,664        164,668
                                                             ========       =======       =======        =======
</TABLE>

4. LOANS, NET

Loans, net, are summarized as follows:

                                             March 31, 2001    December 31, 2000
                                             --------------    -----------------
                                                    (Dollars in thousands)
Commercial and industrial loans              $ 41,621   27.7%   $ 39,139   28.4%
Commercial real estate loans                   99,643   66.4      93,875   68.2
Automobile loans                                6,623    4.4       2,693    1.9
Consumer loans                                  1,380    0.6       1,314    1.0
Residential real estate loans held-for-sale       846    0.9         711    0.5
                                             --------           --------
                                              150,113  100.0     137,732  100.0
Less:
  Unearned income                                 902                395
  Deferred fees, net                              619                612
  Allowance for loan losses                     1,872              1,872
                                             --------           --------
                                             $146,720           $134,853
                                             ========           ========


                                       8
<PAGE>

5. GUARANTEED PREFERRED BENEFICIAL INTEREST IN JUNIOR SUBORDINATED DEBENTURES

On September 7, 2000, LIF Statutory Trust I, a wholly-owned  finance  subsidiary
of the  Company,  issued $7.5  million  aggregate  liquidation  amount of 10.60%
Capital Securities due September 7, 2030, referred to as Capital Securities. The
Company has fully and  unconditionally  guaranteed the Capital  Securities along
with all  obligations of LIF Statutory  Trust I under the trust  agreement.  LIF
Statutory  Trust I was formed for the  exclusive  purpose of issuing the Capital
Securities and common  securities and using the proceeds to acquire an aggregate
principal  amount of $7.7 million of the Company's  10.60%  Junior  Subordinated
Debentures   due  September  7,  2030  referred  to  as  the  Company's   Junior
Subordinated Debentures.  The Junior Subordinated Debentures are prepayable,  in
whole or in part,  at the  Company's  option  on or after  September  7, 2010 at
declining premiums to maturity. Proceeds totaling approximately $7.2 million are
being used for general  corporate  purposes  including the  repurchase of common
stock.

The balance  outstanding on the Capital Securities was $7.5 million at March 31,
2001.  The costs  associated  with the  Capital  Securities  issuance  have been
capitalized  and are being  amortized using the interest method over a period of
thirty  years.  The costs on the Capital  Securities  are payable  semi-annually
beginning  March 7, 2001 and are  reflected in the  Consolidated  Statements  of
Earnings as a  component  of  non-interest  expense  under the caption  "Capital
securities."

6. RECENT DEVELOPMENTS

On February 28, 2001 the Board of Directors of the Company  declared a quarterly
dividend of eight cents ($0.08) per common share. The dividend was paid on April
2, 2001, to shareholders of record as of March 23, 2001.

On September 1, 2000, the Company announced an extension of the stock repurchase
program  which  enables  the Company to  repurchase  an  additional  10% of it's
outstanding  common stock or  approximately  160,000  shares.  Repurchases  will
continue to be made in the open market,  from time to time,  depending on market
conditions  and subject to compliance  with  applicable  securities  laws. As of
March 31,  2001,  311,900  shares  had been  repurchased  by the  Company  at an
aggregate cost of $3.8 million.


                                       9
<PAGE>

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

General

The  principal  business of Long Island  Financial  Corp.,  a financial  holding
company, currently consists of the operation of a wholly-owned subsidiary,  Long
Island   Commercial   Bank.   Long  Island   Commercial   Bank  is  a  New  York
state-chartered commercial bank, founded in 1989, which is engaged in commercial
banking in Islandia,  New York, and the  surrounding  communities of Suffolk 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.

Financial Condition

The Company's total assets were $331.3 million as of March 31, 2001, compared to
$332.9 million at December 31, 2000.  The increase in cash and cash  equivalents
of $14.1 million,  or 86.9%,  was  attributable to the increase in federal funds
sold of $21.0  million,  from a balance of $1.5  million at December 31, 2000 to
$22.5 million at March 31, 2001. Loans, net,  increased $11.8 million,  or 8.8%,
from $134.9  million at December 31, 2000, to $146.7  million at March 31, 2001,
reflecting   increases   in   all   segments   of  the   portfolio.   Securities
available-for-sale and securities pledged for repurchase agreements decreased an
aggregate of $31.6 million or 19.2% as a portion of the proceeds of the maturing
short term U.S.  Government  and agency  obligations  purchased in December 2000
were used to pay the maturing seasonal municipal deposits.  Prepaid expenses and
other assets  decreased  $776,000,  or 31.4%,  from $2.5 million at December 31,
2000,  to $1.7 million at March 31, 2001,  primarily  due to the decrease in the
deferred tax asset directly  related to the decrease in the  unrealized  loss on
securities available-for-sale.

Total deposits decreased $17.1 million, or 6.3%, from $273.2 million at December
31, 2000 to $256.1 million at March 31, 2001, primarily reflecting a decrease in
NOW and money market deposits.  The decrease in NOW and money market deposits of
$40.4  million,  or 49.3%,  from $82.0  million at  December  31,  2000 to $41.6
million at March 31, 2001, is attributable  to the timing of seasonal  municipal
deposits  which  were not on  deposit at March 31,  2001.  The  effects of those
declines  were  offset in part by a $13.4  million,  or 38.0%  increase  in time
deposits issued in excess of $100,000. The Company utilizes time deposits issued
in excess of $100,000 as an available  alternative  funding source. In addition,
savings deposits increased $3.3 million, or 9.9%, from $32.8 million at December
31, 2000 to $36.1 million at March 31, 2001.

Total stockholders'  equity increased $1.1 million to $20.3 million at March 31,
2001  primarily due to a $877,000  decrease in accumulated  other  comprehensive
loss on securities  available-for-sale  and net income of $545,000 for the three
months ended March 31, 2001.  Offsetting these events were dividends declared of
$118,000 and $216,000 employed to repurchase 15,000 shares of common stock.

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


                                       10
<PAGE>

assets and interest-bearing liabilities and the interest rates earned or paid on
them.  The  following  tables  set forth  certain  information  relating  to the
Company's consolidated average balance sheets and its consolidated statements of
earnings for the three months  ended March 31, 2001,  and 2000,  and reflect 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.

<TABLE>
<CAPTION>
                                                                           Three Months Ended March 31,
                                                                           ----------------------------
                                                       -----------2001-----------              -----------2000-----------
                                                                               Average                                 Average
                                                  Average                       Yield/   Average                        Yield/
                                                  Balance       Interest         Cost    Balance        Interest         Cost
                                                  -------       --------       -------   -------        --------       -------
Interest earning assets:                                                  (Dollars in thousands)
<S>                                               <C>           <C>              <C>     <C>           <C>              <C>
     Federal funds sold and
         interest-earning deposits                $ 18,870       $  254          5.38%   $    946       $   15          6.34%
     Securities net(1)                             170,497        2,743          6.44     170,677        2,694          6.31
     Municipal obligations(2)                        1,167           17          5.83       1,166           17          5.83
     Loans, net(3)                                 136,320        3,029          8.89     122,571        2,708          8.84
                                                  --------       ------          ----    --------       ------          ----
         Total interest-earning assets             326,854        6,043          7.40     296,360        5,434          7.36
Non-interest-earning assets                         22,801                                 23,301
                                                  --------                               --------
Total assets                                      $349,655                               $318,661
                                                  ========                               ========
Interest-bearing liabilities:
     Savings deposits                             $ 34,237       $  283          3.31    $ 29,333       $  266          3.63
     NOW and money market deposits                  70,843          387          2.19      61,081          340          2.23
     Certificates of deposit                       125,703        1,942          6.18     103,487        1,470          5.68
                                                  --------       ------          ----    --------       ------          ----
         Total interest-bearing deposits           230,783        2,612          4.53     193,901        2,076          4.28
     Borrowed funds                                 42,204          533          5.05      66,404          879          5.29
                                                  --------       ------          ----    --------       ------          ----
         Total interest-bearing liabilities        272,987        3,145          4.61     260,305        2,955          4.54
Other non-interest bearing liabilities              56,907                                 40,305
                                                  --------                               --------
Total liabilities                                  329,894                                300,610
Stockholders' Equity                                19,761                                 18,051
                                                  --------                               --------
Total liabilities and
     stockholders' equity                         $349,655                               $318,661
                                                  ========                               ========
Net interest income/
     interest rate spread(4)                                     $2,898          2.79%                  $2,479          2.82%
                                                                 ======          ----                   ======          ----
Net interest margin(5)                                                           3.55%                                  3.36%
                                                                                 ====                                   ====
Ratio of interest-earning assets to
     interest-bearing liabilities                                                1.20                                   1.13
                                                                                 ====                                   ====
</TABLE>

(1)   Securities, net, excludes municipal obligations. Unrealized appreciation /
      depreciation on available-for-sale securities are recorded in non-interest
      earning assets.

(2)   Interest  income and yields are  presented on a fully  taxable  equivalent
      basis.

(3)   Amount is net of  residential  real estate loans  held-for-sale,  deferred
      loan fees and allowance for loan losses but includes non-performing loans.

(4)   Interest  rate  spread  represents  the  difference  between  the yield on
      interest-earning assets and the cost of interest-bearing liabilities.

(5)   Net interest  margin  represents  net interest  income  divided by average
      interest-earning assets.


                                       11
<PAGE>

Comparison  of  Operating  Results for the Three Months Ended March 31, 2001 and
2000

General

The Company  reported net income of $545,000,  or basic and diluted earnings per
share of $.37 for the quarter  ended March 31, 2001,  compared to  $452,000,  or
basic and  diluted  earnings  per share of $.27 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 $568,000,  or 24.4%,  which was offset
in part by increases in other operating expenses of $466,000, or 23.0%.

Interest Income

Interest income, on a fully taxable  equivalent basis,  increased  $609,000,  or
11.2 %, from $5.4 million for the three  months  ended March 31,  2000,  to $6.0
million for the three months ended March 31, 2001. The increase was attributable
to an increase in the average balance of total interest-earning  assets of $30.5
million,  or 10.3%,  from $296.4  million for the three  months  ended March 31,
2000, to $326.9  million for the three months ended March 31, 2001.  The average
balance of federal  funds sold and  interest  earning  deposits  increased  from
$946,000 at March 31, 2000, to $18.9 million at March 31, 2001, as a result of a
$22.2  million,  or 21.5%  increase in the average  balance of  certificates  of
deposit,  combined  with a $9.8  million,  or 16.0%,  increase  in NOW and money
market deposits. The average balance of securities, net, (exclusive of municipal
obligations)  decreased  $180,000,  or  0.11%,  but  returned  a 13 basis  point
increase  in the  average  yield to 6.44% for the three  months  ended March 31,
2001,  compared to 6.31% for the 2000 period. The average balance of loans, net,
increased $13.7 million, or 11.2% from $122.6 million for the three months ended
March 31,  2000,  to $136.3  million for the 2001 period.  The average  yield on
loans receivable,  net, increased 5 basis points from 8.84% for the 2000 period,
to 8.89% for the three months ended March 31, 2001.

Interest Expense

Interest expense  increased  $190,000,  or 6.4%, from $3.0 million for the three
months  ended March 31,  2000,  to $3.1 million for the three months ended March
31,  2001,  primarily  as a result of a $12.7  million or 4.9%  increase  in the
average balance of total  interest-bearing  liabilities  from $260.3 million for
the 2000 period to $273.0 million for the three months ended March 31, 2001. The
increased  interest  expense  resulted from  increases in market  interest rates
during 2000 resulting  primarily in higher certificate of deposit funding costs.
The average  rate paid on interest  bearing  deposits  increased 25 basis points
from 4.28% paid for the 2000  period to 4.53%  paid for the three  months  ended
March 31,  2001.  The  average  balance of savings  deposits  increased  by $4.9
million,  or 16.7%,  and the average  balance of NOW and money  market  deposits
increased by $9.8 million,  or 16.0% from period to period.  The average balance
of certificates of deposit  increased $22.2 million as the Company utilized over
$100,000 time deposits as an  alternative  funding  source.  The average cost of
borrowed  funds  decreased 24 basis  points from 5.29% for the 2000  period,  to
5.05% for the three  months ended March 31,  2001,  due to the reduced  level of
borrowings at lower market interest rates.


                                       12
<PAGE>

Net Interest Income

Net interest income on a fully taxable  equivalent  basis increased by $419,000,
or 16.9%,  from $2.5 million for the three months ended March 31, 2000,  to $2.9
million for the three  months  ended March 31,  2001.  The average cost of total
interest-bearing  liabilities for the period increased 7 basis points from 4.54%
in the 2000  period  to 4.61% in the 2001  period.  The  average  yield on total
interest-earning  assets for the period  increased 4 basis  points from 7.36% in
the 2000  period  to 7.40% in the 2001  period.  The net  interest  rate  spread
decreased by 3 basis points from 2.82% in the 2000 period,  to 2.79% in the 2001
period.

Provision for Loan Losses

The Company made no  provision  for loan losses for the three months ended March
31,  2001,  compared to a $150,000  provision  for the three month  period ended
March 31, 2000.  The absence of a provision for loan losses for the three months
ended  March  31,  2001  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 $1.9 million at both March 31,
2001 and December 31, 2000.  The  allowance  for loan losses as a percentage  of
loans was 1.26% and 1.37% at March 31, 2001 and 2000, 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
judgment  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 judgment 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.


                                       13
<PAGE>

                                               March 31, 2001  December 31, 2000
                                               --------------  -----------------
                                                        (In thousands)
Non-accrual loans:
     Commercial and industrial loans                $349             384
     Automobile loans                                 --              --
     Consumer loans                                   32              32
                                                    ----            ----
         Total non-accrual loans                     381             416

     Loans contractually past due 90 days or
     more, other than non-accruing                     5              --
                                                    ----            ----
         Total non-performing loans                 $386             416
                                                    ====            ====
Allowance for loan losses as a percentage
     of loans(1)                                    1.26%           1.37%
Allowance for loan losses as a percentage
     of total non-performing loans                484.97%          450.0%
Non-performing loans as a percentage of loans(1)     .26%            .30%

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

Other Operating Income

Other operating  income increased  $51,000,  or 13.5%, to $430,000 for the three
months  ended March 31,  2001.  Service  charges on deposit  accounts  increased
$59,000,  or 29.5%,  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.  Included in other operating income was a $14,000,
or 26.9%,  increase in net gain on sale of  residential  loans as a result of an
overall  increase in  residential  mortgage loan  production.  Offsetting  these
events, the Company engaged in a securities  transaction  resulting in a loss of
$53,000.  Contingent upon market conditions,  the Company periodically evaluates
repositioning the securities portfolio to improve future net interest income and
net income.

Other Operating Expense

Other operating expenses increased $466,000, or 23.0%, from $2.0 million for the
three months  ended March 31,  2000,  to $2.5 million for the three months ended
March 31,  2001.  Increases  in salaries  and  employee  benefits,  premises and
equipment  expense,  and other expense for the three months ended March 31, 2001
are a result of the  Bank's  branch  expansion  plan and  included  $199,000  of
expense related to the $7.5 million of Capital securities issued in September of
2000.

Income Taxes

Income taxes  increased  $60,000,  or 26.9%,  from $223,000 for the three months
ended March 31, 2000,  to $283,000 for the three months ended March 31, 2001, as
a result of the increase in income before  income taxes.  The effective tax rate
for the three months  ended March 31, 2001 was 34.2%,  compared to 33.0% for the
three months ended March 31, 2000.


                                       14
<PAGE>

Recent Accounting Pronouncements

In June 2000 the Financial Accounting Standards Board (FASB) issued Statement of
Financial   Accounting   Standards  (SFAS)  No.  138,  "Accounting  for  Certain
Derivative  Instruments  and Certain  Hedging  Activities - an amendment of FASB
Statement  No.  133,   "Accounting   for  Derivative   Instruments  and  Hedging
Activities." This statement supercedes and amends certain paragraphs of SFAS No.
133. The  effective  date for SFAS No. 138 is for fiscal years  beginning  after
June 15, 2000.  SFAS Nos. 138 and 133 apply to  quarterly  and annual  financial
statements.  There was no impact on the Company's financial condition or results
of operations upon adoption of SFAS Nos. 138 and 133.

In September  2000, the FASB issued SFAS No. 140,  "Accounting for Transfers and
Servicing  of  Financial  Assets  and   Extinguishments  of  Liabilities."  This
Statement  supercedes and replaces SFAS No. 125,  "Accounting  for Transfers and
Servicing of Financial Assets and  Extinguishments of Liabilities," and rescinds
SFAS No. 127,  "Deferral of the  Effective  Date of Certain  Provisions  of FASB
Statement No. 125." SFAS No. 140 provides accounting and reporting standards for
securitization  transactions  involving  financial  assets,  sales of  financial
assets such as receivables,  collateralized  borrowing arrangements,  securities
lending   transactions,   repurchase   agreements,   loan  participations,   and
extinguishments of liabilities.  Certain provisions of this Statement  including
relevant  disclosures  are effective for fiscal years ending after  December 31,
2000. The remaining  provision are effective for transfer  transactions  entered
into after March 31, 2001.  SFAS No. 140 does not require  restatement  of prior
periods.  The  implementation  of SFAS N0.  140 does not have an  impact  on our
financial statements.

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 three months
ended March 31, 2001,  and 2000,  the  Company's  purchases of  securities  were
classified  available-for-sale  and totaled $540.4  million and $113.1  million,
respectively.  Loan originations,  net of principal repayments on loans, totaled
$11.7 million and $5.0 million,  for the three months ended March 31, 2001,  and
2000,  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 or liquidate  available-for-sale  securities.  It can also
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 8.6% of the Company's assets at March 31, 2001,
which  enable it to borrow  funds on a secured  basis.  The  Company  could also
engage in other forms of borrowings, including reverse repurchase agreements.


                                       15
<PAGE>

At March 31, 2001,  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 March 31, 2001,  convertible
advances outstanding were as follows:

                          Interest              Call               Contractual
         Amount             Rate                Date                Maturity
         ------             ----                ----                --------
       $14,000,000          5.49%             02/19/2003           02/19/2008
       $15,000,000          4.59%             01/21/2002           01/21/2009
       $14,000,000          4.97%             01/19/2004           01/19/2011

Management of the Company has set a 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
March 31, 2001, was 26.5%.

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,
2000,  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 March 31, 2001,  the Bank  exceeded
those  requirements with a leverage capital ratio, and risk-based  capital ratio
and total-risk based capital ratio of 6.66%, 12.58%, and 13.59%, respectively.


                                       16
<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 March 31, 2001,  79.6% of the Company's  gross loans had adjustable  interest
rates and its loan portfolio had an average  weighted  maturity of 9.2 years. At
such date, $9.5 million,  or 6.69%,  of the Company's  securities had adjustable
interest rates, and its securities  portfolio had a weighted average maturity of
5.3 years.  At March 31, 2001, the Company had $67.4 million of  certificates of
deposit with  maturities  of one year or less and $48.6 million of deposits over
$100,000, which tend to be less stable sources of funding, when compared to core
deposits,  and  which  represented  45.4%  of  the  Company's   interest-bearing
liabilities.   In   a   rising   interest   rate   environment   the   Company's
interest-bearing  liabilities may adjust upwardly more rapidly than the yield on
its  adjustable-rate  loans.  Thus,  due to the Company's  level of shorter term
certificates  of deposit,  the Company's cost of funds may increase at a greater
rate in a  rising  rate  environment  than if it had a  greater  amount  of core
deposits  which,  in turn,  may  adversely  affect net  interest  income and net
income.

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


                                       17
<PAGE>

At March 31, 2001,  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:

                       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           $  (300)          (2.30)%     $  (4,753)        (21.28)%
      100              (281)          (2.15)         (2,191)         (9.81)
   Static                --              --              --             --
     (100)           (1,165)          (8.91)          1,811           8.11
     (200)           (2,803)         (21.45)          3,466          15.52


                                       18
<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

         None

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

         b. Reports on Form 8-K
            None


                                       19
<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:    May 15, 2001         By:               /s/ Douglas C. Manditch
                                       -----------------------------------------
                                                Douglas C. Manditch
                                                President and Chief Executive
                                                Officer

Date:    May 15, 2001         By:               /s/ Thomas Buonaiuto
                                       -----------------------------------------
                                                Thomas Buonaiuto
                                                Vice President and Treasurer


                                       20
<PAGE>

Exhibit 11.0 Statement Regarding Computation Of Earnings Per Share

<TABLE>
<CAPTION>
                                                                  Three Months Ended March 31,
                                                                  ----------------------------
                                                                       2001         2000
                                                                       ----         ----
<S>                                                                <C>           <C>
Net income available to common shareholders                        $      545          452

Total weighted average common shares outstanding                    1,478,537    1,646,326

Basic earnings per common share                                    $      .37          .27
                                                                   ==========   ==========

Total weighted average common shares outstanding                    1,478,537    1,646,326

Dilutive effect of stock options using the treasury stock method       13,570           --

Total average common and common equivalent shares                   1,492,107    1,646,326

Diluted earnings per share                                         $      .37          .27
                                                                   ==========   ==========
</TABLE>