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

                                    FORM 10-Q

 (Mark One)      Quarterly Report Pursuant to Section 13 or 15(d) of
     [X]               the Securities Exchange Act of 1934
                For the quarterly period ended September 30, 2002
                                         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 1,446,226  shares of Common Stock  outstanding as of November
8, 2002.


<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 September 30, 2002
                and December 31, 2001                                   2
          Consolidated Statements of Earnings for the Three Months
          and Nine Months Ended September 30, 2002 and 2001             3
          Consolidated Statement of Changes in Stockholders' Equity
                for the Nine Months Ended September 30, 2002            4
          Consolidated Statements of Cash Flows for the Nine Months
                Ended September 30, 2002 and 2001                       5
          Notes to Consolidated Financial Statements                    6
ITEM 2.   Management's Discussion and Analysis of Financial
                Condition and Results of Operations                     8
ITEM 3.   Quantitative and Qualitative Disclosures About Market Risk   18
ITEM 4.   Controls and Procedures                                      19

PART II  - OTHER INFORMATION

ITEM 1.       Legal Proceedings                                        20
ITEM 2.       Changes in Securities and Use of Proceeds                20
ITEM 3.       Defaults Upon Senior Securities                          20
ITEM 4.       Submission of Matters to a Vote of Security Holders      20
ITEM 5.       Other Information                                        20
ITEM 6.       Exhibits and Reports on Form 8-K                         20
              Signatures                                               21
              Certifications                                           22





================================================================================
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
                                                             (Unaudited)
                                                  (In thousands, except share data)
                                                                                September 30,  December 31,
                                                                                      2002         2001
Assets:

<S>                                                                                     <C>          <C>
Cash and due from banks                                                           $  22,931    $  30,347
Interest earning deposits                                                                64          279
Federal funds sold                                                                    5,000           --
                                                                                      -----        -----
              Total cash and cash equivalents                                        27,995       30,626
Securities held-to-maturity  (fair value of $13,532 and $12,937, respectively)       12,458       12,457
Securities available-for-sale, at fair value                                        147,880      201,967
Federal Home Loan Bank stock, at cost                                                 2,750        2,858
Loans, net of unearned income and deferred fees                                     199,466      178,797
Less allowance for loan losses                                                       (2,213)      (2,028)
                                                                                     ------       ------
              Loans, net                                                            197,253      176,769
Premises and equipment, net                                                           3,338        2,929
Accrued interest receivable                                                           2,515        2,121
Bank owned life insurance                                                             6,738        6,495
Prepaid expenses and other assets                                                     1,048        2,168
                                                                                      -----        -----
              Total assets                                                        $ 401,975    $ 438,390
                                                                                  =========    =========

Liabilities and Stockholders' Equity:

Deposits:
    Demand deposits                                                               $  77,034    $  61,502
    Savings deposits                                                                 75,767       43,032
    NOW and money market deposits                                                    36,865      111,058
    Time certificates issued in excess of $100,000                                   22,505       35,861
    Other time deposits                                                              99,155       94,464
                                                                                     ------       ------
              Total deposits                                                        311,326      345,917
Federal funds purchased and securities sold under agreements
    to repurchase                                                                      --          4,500
Other borrowings                                                                     55,000       55,000
Accrued expenses and other liabilities                                                3,162        4,346
                                                                                      -----        -----
              Total liabilities                                                     369,488      409,763
                                                                                    -------      -------

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; 1,783,126 and 1,776,826 shares issued; 1,446,226 and
        1,439,926 shares outstanding, respectively)                                      18           18
    Surplus                                                                          20,281       20,191
    Accumulated surplus                                                               7,125        5,323
    Accumulated other comprehensive income (loss)                                     1,741         (227)
    Treasury stock at cost, (336,900 shares in 2002 and 2001)                        (4,178)      (4,178)
                                                                                     ------       ------
              Total stockholders' equity                                             24,987       21,127
                                                                                     ------       ------
              Total liabilities and stockholders' equity                          $ 401,975    $ 438,390
                                                                                  =========    =========

See accompanying notes to consolidated financial statements

                                       2
<PAGE>


</TABLE>

<TABLE>
<CAPTION>

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

                                                                   For the Three Months      For the Nine Months
                                                                    Ended September 30,       Ended September 30,
                                                                      2002         2001         2002          2001
<S>                                                                    <C>          <C>          <C>           <C>
Interest income:
     Loans                                                      $    3,688   $    3,343   $   10,710   $     9,565
     Securities                                                      2,068        2,175        6,664         7,498
     Federal funds sold                                                 35           42           89           436
     Earning deposits                                                    2            5            6            11
                                                                         -            -            -            --
            Total interest income                                    5,793        5,565       17,469        17,510
                                                                     -----        -----       ------        ------

Interest expense:
     Savings deposits                                                  341          296          742           859
     NOW and money market deposits                                     123          111          536           823
     Time certificates issued in excess of $100,000                    163          372          581         1,566
     Other time deposits                                               987        1,302        3,049         3,916
     Borrowed funds                                                    665          557        1,999         1,658
                                                                       ---          ---        -----         -----
         Total interest expense                                      2,279        2,638        6,907         8,822
                                                                     -----        -----        -----         -----

         Net interest income                                         3,514        2,927       10,562         8,688
                                                                     -----        -----       ------         -----

Provision for loan losses                                               60           75          210            75
                                                                        --           --          ---            --

         Net interest income after provision
             for loan losses                                         3,454        2,852       10,352         8,613
                                                                     -----        -----       ------         -----

Other operating income:
     Service charges on deposit accounts                               445          258        1,287           789
     Net gain (loss) on sale of securities                              --           15           --           (38)
     Net gain on sale of residential loans                             189          123          525           278
     Earnings on bank owned life insurance                              96           89          288           268
     Other                                                             116           85          334           209
                                                                       ---           --          ---           ---
         Total other operating income                                  846          570        2,434         1,506
                                                                       ---          ---        -----         -----

Other operating expenses:
     Salaries and employee benefits                                  1,632        1,310        4,594         3,708
     Occupancy expense                                                 235          192          664           565
     Premises and equipment expense                                    309          263          891           711
     Capital securities                                                209          202          614           601
     Other                                                             886          794        2,682         2,279
                                                                       ---          ---        -----         -----
         Total other operating expenses                              3,271        2,761        9,445         7,864
                                                                     -----        -----        -----         -----

         Income before income taxes                                  1,029          661        3,341         2,255

Income taxes                                                           353          226        1,148           773
                                                                       ---          ---        -----           ---

         Net income                                             $      676   $      435   $    2,193   $     1,482
                                                                ==========   ==========   ==========   ===========

Basic earnings per share                                        $      .47   $      .30   $     1.52   $      1.02
                                                                ==========   ==========   ==========   ===========
Diluted earnings per share                                      $      .45   $      .29   $     1.47   $      1.00
                                                                ==========   ==========   ==========   ===========
Weighted average shares outstanding                              1,446,226    1,439,676    1,444,307     1,457,258
                                                                 =========    =========    =========     =========
Diluted weighted average shares outstanding                      1,503,461    1,474,878    1,492,038     1,480,125
                                                                 =========    =========    =========     =========

See accompanying notes to consolidated financial statements

                                       3
<PAGE>

</TABLE>

<TABLE>
<CAPTION>

                                            LONG ISLAND FINANCIAL CORP
                             Consolidated Statement of Changes in Stockholders' Equity
                                   For the Nine Months Ended September 30, 2002
                                                    (Unaudited)
                                         (In thousands, except share data)
                                                                        Accumulated
                                                                          other
                                             Common         Accumulated comprehensive  Treasury
                                             stock   Surplus  surplus   (loss)/inc      stock        Total

<S>                                            <C>     <C>      <C>        <C>            <C>          <C>
Balance at December 31, 2001                $   18   20,191    5,323      (227)         (4,178)       21,127

Comprehensive income:
    Net income                                  --       --    2,193         --             --         2,193
      Other comprehensive income,
        net of tax:
         Unrealized appreciation in
         available-for-sale securities,
         net of reclassification adjustment     --       --      --       1,968             --         1,968
                                              ----     ----    ----       -----           ----         -----

Total comprehensive income                      --       --      --          --             --         4,161

Exercise of stock options and related
     tax benefit (6,300 shares)                 --       90      --          --             --            90

Dividends declared on common stock
     ($.27 per common share)                    --       --     (391)        --             --          (391)
                                              ----     ----     ----       ----           ----          ----

Balance at September 30, 2002               $   18   20,281    7,125       1,741        (4,178)       24,987
                                            ======   ======    =====       =====        ======        ======



See accompanying notes to consolidated financial statements


</TABLE>

                                       4
<PAGE>












<TABLE>
<CAPTION>


                                                     LONG ISLAND FINANCIAL CORP
                                                Consolidated Statements of Cash Flows
                                                             (Unaudited)
                                                           (In thousands)
                                                                             For the Nine Months
                                                                             Ended September 30,
                                                                              2002         2001

        <S>                                                                     <C>          <C>
Cash flows from operating activities:
     Net income                                                           $   2,193    $   1,482
     Adjustments to reconcile net income to net cash
         provided by operating activities:
              Provision for loan losses                                         210           75
              Depreciation and amortization                                     678          528
              Amortization of premiums, net of discount accretion             1,074         (460)
              Net loss on sale of securities                                     --           38
              Loans originated for sale, net of proceeds
                  from sales                                                      2         (183)
              Net deferred loan origination fees                                 49           27
              Earnings on bank owned life insurance                            (288)        (268)
              Deferred income taxes                                             (66)         (65)
              Changes in other assets and liabilities:
                  Accrued interest receivable                                  (394)        (197)
                  Prepaid expenses and other assets                             110          139
                  Accrued expenses and other liabilities                     (1,184)        (242)
                                                                             ------         ----
         Net cash provided by operating activities                            2,384          874
                                                                              -----          ---

Cash flows from investing activities:
     Purchases of securities held-to-maturity, available-for-sale          (644,846)    (835,661)
     Net redemption of Federal Home Loan  Bank stock                            108        2,468
     Proceeds from the sale of securities available-for-sale                     --       29,305
     Proceeds from maturities of securities                                 667,018      817,006
     Principal repayments on securities                                      33,929       22,791
     Loan originations net of principal repayments                          (20,745)     (31,836)
     Purchase of premises and equipment                                      (1,087)        (983)
                                                                             ------         ----
         Net cash provided by investing activities                           34,377        3,090
                                                                             ======        =====

Cash flows from financing activities:
     Net decrease in demand deposit, savings, NOW,
         and money market accounts                                          (25,926)     (34,459)
     Net (decrease) increase in certificates of deposit                      (8,665)      20,786
     Net decrease in federal funds purchased and securities sold
         under agreement to repurchase                                       (4,500)          --
     Net increase in other borrowings                                            --       14,000
     Exercise of stock options                                                   90            6
     Payments for cash dividends                                               (391)        (348)
     Purchase of treasury stock                                                  --         (564)
                                                                               ----         ----
         Net cash used in financing activities                              (39,392)        (579)
                                                                            -------         ----

         Net (decrease) increase in cash and cash equivalents                (2,631)       3,385

Cash and cash equivalents at beginning of period                             30,626       16,208
                                                                             ------       ------
Cash and cash equivalents at end of period                                $  27,995    $  19,593
                                                                          =========    =========

Supplemental disclosure of cash flow information
Cash paid during the period for:
     Interest                                                             $   7,906    $   8,694
                                                                          =========    =========
     Income taxes                                                         $   1,679    $     814
                                                                          =========    =========

See accompanying notes to consolidated financial statements
</TABLE>

                                       5
<PAGE>

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

1.       BASIS OF PRESENTATION

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

The accompanying  unaudited  consolidated  financial  statements included herein
reflect  all  normal  recurring   adjustments  which  are,  in  the  opinion  of
management,  necessary  for a fair  presentation  of the results for the interim
periods  presented.  The results of  operations  for the nine month period ended
September 30, 2002 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 2001 Annual Report on Form 10-K.


2.       SECURITIES

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

<TABLE>
<CAPTION>

                                                               September 30, 2002           December 31, 2001
                                                             Amortized        Fair        Amortized       Fair
                                                               Cost           Value         Cost          Value
                                                                                (In thousands)

     <S>                                                        <C>               <C>       <C>                <C>
    Held-to-maturity:
    Corporate debt                                         $   12,458        13,532    $   12,457         12,937
                                                           ----------        ------    ----------         ------
         Total held-to-maturity                            $   12,458        13,532    $   12,457         12,937
                                                           ==========        ======    ==========         ======

    Available-for-sale:
    U.S. Government and Agency obligations                 $   52,653        53,408    $   89,930         89,732
    Mortgage-backed securities:
       GNMA                                                    62,765        64,224        85,171         85,021
       FHLMC                                                   11,173        11,263         4,402          4,304
       FNMA                                                    16,542        16,966        20,803         20,918
    Corporate debt                                              2,014         2,019         2,017          1,992
                                                                -----         -----         -----          -----
        Total securities available-for-sale                $  145,147       147,880    $  202,323        201,967
                                                           ==========       =======    ==========        =======
</TABLE>

                                       6
<PAGE>


3.        LOANS, NET

Loans, net, are summarized as follows:
<TABLE>
<CAPTION>

                                                      September 30, 2002               December 31, 2001
                                                                       (Dollars in thousands)

        <S>                                                  <C>      <C>                 <C>        <C>
       Commercial and industrial loans               $     47,672    23.5  %         $    43,972     24.2  %
       Commercial real estate loans                       123,674    60.9                116,646     64.2
       Automobile loans                                    27,938    13.8                 18,300     10.1
       Consumer loans                                       2,293     1.1                  1,312       .7
       Residential real estate loans held-for-sale          1,470      .7                  1,472       .8
                                                            -----     ---                  -----       --
                                                          203,047   100.0                181,702    100.0
       Less:
         Unearned income                                    2,885                          2,258
         Deferred fees, net                                   696                            647
         Allowance for loan losses                          2,213                          2,028
                                                            -----                          -----
                                                     $    197,253                    $   176,769
                                                     ============                    ===========
</TABLE>


4.       RECENT DEVELOPMENTS

On August 27, 2002 the Board of  Directors  of the Company  declared a quarterly
dividend  of nine cents  ($0.09)  per common  share.  The  dividend  was paid on
October 1, 2002, to shareholders of record as of September 20, 2002.

5.       OTHER COMMITMENTS AND CONTINGENT LIABILITIES

At September 30, 2002,  the Bank had  outstanding  commitments  to purchase $5.0
million of  mortgage-backed  securities  at a rate of 4.00%  settling in October
2002 and $5.0 million of mortgage-backed  securities at a rate of 4.00% settling
in November 2002.

6.       RECENT ACCOUNTING PRONOUNCEMENTS

In  October  2002,  the  Financial  Accounting  Standards  Board  (FASB)  issued
Statement of Financial  Accounting  Standards  (SFAS) No. 147,  "Acquisitions of
Certain Financial  Institutions."  SFAS No. 147 amends SFAS No. 72,  "Accounting
for  Certain  Acquisitions  of Banking or Thrift  Institutions,"  SFAS No.  144,
"Accounting  for the  Impairment  or Disposal of  Long-Lived  Assets",  and FASB
Interpretation  No. 9,  "Applying APB Opinions Nos. 16 and 17 When a Savings and
Loan Association or a Similar Institution is Acquired in a Business  Combination
Accounted for by the Purchase  Method." This Statement  removes  acquisitions of
financial  institutions,  other than  transactions  between  two or more  mutual
enterprises,  from the scope of SFAS No. 72 and FASB  Interpretation No. 9. SFAS
No. 147 also  amends  SFAS No. 144 to  include  long-term  customer-relationship
intangible assets such as depositor- and borrower-relationship intangible assets
and credit  cardholder  intangible  assets.  The  provisions of SFAS No. 147 are
effective  October 1, 2002.  There was no impact on the  Company's  consolidated
statements  of financial  condition or  consolidated  statements  of income upon
adoption of SFAS No. 147.

In July 2002,  the FASB issued SFAS No. 146,  "Accounting  for Costs  Associated
with Exit or Disposal Activities." The Statement requires companies to recognize
costs associated with exit or disposal  activities when they are incurred rather
than  at the  date  of a  commitment  to an  exit  or  disposal  plan.  Previous
accounting  guidance was provided by Emerging Issues Task Force (EITF) Issue No.
94-3, "Liability Recognition for Certain Employee Termination Benefits and Other
Costs  to  Exit  an   Activity   (including   Certain   Costs   Incurred   in  a
Restructuring)."  SFAS No. 146 replaces EITF Issue No. 94-3.  SFAS No. 146 is to
be applied prospectively to exit or disposal activities initiated after December
31, 2002.


                                       7
<PAGE>

In April 2002, the FASB issued SFAS No. 145, "Rescission of FASB Statements Nos.
4, 44, and 64,  Amendment of FASB Statement No. 13, and Technical  Corrections."
The  Statement   updates,   clarifies   and   simplifies   existing   accounting
pronouncements.  SFAS No. 145 rescinds SFAS No. 4,  "Reporting  Gains and Losses
from  Extinguishment  of  Debt,"  which  required  all  gains  and  losses  from
extinguishment  of debt to be  aggregated  and, if  material,  classified  as an
extraordinary  item, net of related income tax effect. As a result, the criteria
in Accounting  Principles Board Opinion (APB) No. 30,  "Reporting the Effects of
Disposal of a Segment of a Business, and Extraordinary, Unusual and Infrequently
Occurring Events and Transactions," will now be used to classify those gains and
losses.  The provisions of SFAS No. 145 are effective for fiscal years beginning
after May 15, 2002. Early application of SFAS No. 145 is encouraged.  There will
be no impact  on the  Company's  consolidated  balance  sheets  or  consolidated
statements of earnings upon adoption of SFAS No. 145.

In October 2001, the FASB issued SFAS No. 144, "Accounting for the Impairment or
Disposal of Long-Lived Assets," which replaced SFAS No. 121, "Accounting for the
Impairment of Long-Lived  Assets and for  Long-Lived  Assets to Be Disposed Of."
SFAS No. 144  established  a single  accounting  model,  based on the  framework
established  in SFAS No. 121, for  long-lived  assets to be disposed of by sale.
SFAS No. 144 also resolved significant implementation issues related to SFAS No.
121. The  provisions  of SFAS No. 144 are  effective  for  financial  statements
issued for fiscal years beginning  after December 15, 2001.  There was no impact
on the  Company's  consolidated  balance  sheets or  consolidated  statements of
earnings upon adoption of SFAS No. 144, on January 1, 2002.

In July 2001,  the FASB  issued  SFAS No. 142,  "Goodwill  and Other  Intangible
Assets,"  which  requires that goodwill and  intangible  assets with  indefinite
useful lives no longer be  amortized,  but instead be tested for  impairment  at
least  annually in  accordance  with the provision of SFAS No. 142. SFAS No. 142
also  requires  that other  intangible  assets with  estimable  useful  lives be
amortized  over  their  respective  estimated  useful  lives to their  estimated
residual  values.  Amortizing  intangible  assets  must  also  be  reviewed  for
impairment.  SFAS No. 142 is applicable to fiscal years beginning after December
15, 2001 and is required to be applied at the  beginning of the entities  fiscal
year. There was no impact on the Company's consolidated  balance sheets
or consolidated statements of earnings upon adoption of SFAS No. 142, on
January 1, 2002.



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

General

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


                                       8
<PAGE>


Critical Accounting Policies

The Company identifies  accounting policies critical to the Company's operations
and  understanding of the Company's  results of operations.  Certain  accounting
policies  are  considered  to be important  to the  portrayal  of the  Company's
financial condition, since they require management to make complex or subjective
judgments,  some of which may relate to matters that are  inherently  uncertain.
The inherent sensitivity of the Company's  consolidated  financial statements to
critical  accounting   policies  and,  the  use  of  judgments,   estimates  and
assumptions  could result in material  differences  in the Company's  results of
operations or financial condition.

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

In  evaluating  the  portfolio,  management  takes into  consideration  numerous
factors such as the Company's loan growth,  prior loss  experience,  present and
potential  risks  of the  loan  portfolio,  risk  ratings  assigned  by  lending
personnel, ratings assigned by the independent loan review function, the present
financial  condition of the borrowers,  current economic  conditions,  and other
portfolio risk  characteristics.  The Company's formalized process for assessing
the adequacy of the allowance  for loan losses and the  resultant  need, if any,
for periodic  provisions  to the  allowance  charged to income  consists of both
individual  loan analyses and loan pool analyses.  The individual  loan analyses
are periodically  performed on individually  significant loans or when otherwise
deemed necessary and primarily  encompass  commercial real estate and commercial
and industrial loans.  Management believes that the Company's allowance for loan
losses at  September  30, 2002 is adequate  to provide  for  estimated  probable
losses inherent in the portfolio.

Financial Condition

The  Company's  total  assets  were $402.0  million as of  September  30,  2002,
compared to $438.4  million at December 31,  2001.  The decrease in total assets
was primarily  attributable to the decline in the securities  available-for-sale
portfolio,  which decreased $54.1 million, or 26.8%, as the proceeds of maturing
short-term  U.S.  Government and agency  obligations  purchased in December 2001
were used to pay maturing seasonal municipal deposits.  Offsetting this decrease
in part,  was a $20.5  million,  or 11.6%,  increase in loans,  net, from $176.8
million  at  December  31,  2001,  to $197.3  million  at  September  30,  2002,
reflecting increases primarily in the automobile loan and commercial real estate
loan portfolio.

Total  deposits  decreased  $34.6  million,  or 10.0%,  from  $345.9  million at
December 31, 2001 to $311.3 million at September 30, 2002,  primarily reflecting
a decrease  in NOW and money  market  deposits.  The  decrease  in NOW and money
market deposits of $74.2 million,  or 66.8%, from $111.1 million at December 31,
2001 to $36.9 million at September 30, 2002, is  attributable  to the withdrawal
of seasonal  municipal  deposits.  Time deposits in excess of $100,000 decreased
$13.4  million,  or 37.2%,  from $35.9  million at  December  31,  2001 to $22.5
million at September 30, 2002. The effects of those declines were offset in part
by a $32.7 million, or 76.1%,  increase in savings deposits and a $15.5 million,
or 25.3%,  increase in demand deposits. No federal funds purchased or securities
sold under  agreements to  repurchase  were  outstanding  at September 30, 2002.
Other borrowings,  which consist of Federal Home Loan Bank of New York advances,
remained unchanged at $55.0 million.


                                       9
<PAGE>



Stockholders'  equity  increased  $3.9  million,  or 18.3%,  to $25.0 million at
September 30, 2002 compared to $21.1 million at December 31, 2001.  The increase
to  stockholders  equity included $2.2 million of net income for the nine months
ending September 30, 2002, and a decrease in the accumulated other comprehensive
loss  on  securities   available-for-sale  of  $2.0  million.  Offsetting  those
increases in part were dividends declared of $391,000.

Analysis of Net Interest Income

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

The  following  tables set forth certain  information  relating to the Company's
consolidated average balance sheets and its consolidated  statements of earnings
for the three  months and nine months  ended  September  30, 2002 and 2001,  and
reflect  the  average  yield on  interest-earning  assets  and  average  cost of
interest-bearing  liabilities  for the periods  indicated.  Yields and costs are
derived by  dividing  annualized  income or expense  by the  average  balance of
interest-earning assets or interest-bearing liabilities,  respectively.  Average
balances are derived from  average  daily  balances.  Average  balances  include
non-accrual loans although they are not material.

                                       10
<PAGE>

<TABLE>
<CAPTION>

                                                                  Three Months Ended September 30,
                                                -----------2002-----------              -----------2001-----------
                                                                        Average                             Average
                                                  Average                Yield /         Average             Yield /
                                                  Balance   Interest     Cost            Balance  Interest    Cost
Interest-earning assets:                                                (Dollars in thousands)
     Federal funds sold and
        <S>                                         <C>        <C>        <C>               <C>      <C>       <C>
         interest-earning deposits              $   8,632   $     37      1.71%        $   5,189   $   47      3.62%
     Securities, net (1)                          161,492      2,068      5.12           136,537    2,163      6.34
     Municipal obligations (2)                       --         --          --             1,168       17      5.82
     Loans, net (3)                               192,106      3,688      7.68           158,061    3,343      8.46
                                                  -------      -----      ----           -------    -----      ----
         Total interest-earning assets            362,230      5,793      6.40           300,955    5,570      7.40
Non-interest-earning assets                        34,598                                 23,924
                                                   ------                                 ------
Total assets                                    $ 396,828                              $ 324,879
                                                =========                              =========

Interest-bearing liabilities:
     Savings deposits                           $  70,118        341      1.95         $  41,887      296      2.83
     NOW and money market deposits                 39,789        123      1.24            26,850      111      1.65
     Certificates of deposit                      124,437      1,150      3.70           127,851    1,674      5.24
                                                  -------      -----      ----           -------    -----      ----
         Total interest-bearing deposits          234,344      1,614      2.75           196,588    2,081      4.23
     Borrowed funds                                55,000        665      4.84            43,806      557      5.09
                                                   ------        ---      ----            ------      ---      ----
         Total interest-bearing liabilities       289,344      2,279      3.15           240,394    2,638      4.39
Other non-interest bearing liabilities             83,312                                 63,609
                                                   ------                                 ------
Total liabilities                                 372,656                                304,003
Stockholders' equity                               24,172                                 20,876
                                                   ------                                 ------
Total liabilities and
     stockholders' equity                       $ 396,828                              $ 324,879
                                                =========                              =========


Net interest income/
     interest rate spread (4)                               $  3,514      3.25%                  $  2,932      3.01%
                                                            ========      ====                   ========      ====

Net interest margin (5)                                                   3.88%                                3.90%
                                                                          ====                                 ====

Ratio of interest-earning assets to
     interest-bearing liabilities                                         1.25x                               1.25x
                                                                          ====                                ====


(1)  Securities, net, excludesmunicipal  obligation.  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.
</TABLE>

                                       11
<PAGE>






<TABLE>
<CAPTION>


                                                                   Nine Months Ended September 30,
                                                -----------2002-----------              -----------2001-----------
                                                                        Average                             Average
                                                  Average                Yield /         Average             Yield /
                                                  Balance   Interest      Cost           Balance  Interest    Cost

<S>                                                      <C>         <C>        <C>       <C>   <C>          <C>
Interest-earning assets:                                                (Dollars in thousands)
     Federal funds sold and
         interest-earning deposits              $   7,524   $     95      1.68%        $  12,263  $   447     4.86%
     Securities, net (1)                          177,267      6,664      5.01           159,185    7,462     6.25
     Municipal obligations (2)                         --         --        --             1,168       51     5.82
     Loans, net (3)                               186,394     10,710      7.66           147,867    9,565     8.62
                                                  -------     ------      ----           -------    -----     ----
         Total interest-earning assets            371,185     17,469      6.28           320,483   17,525     7.29
Non-interest-earning assets                        33,989                                 23,966
                                                   ------                                 ------
Total assets                                    $ 405,174                              $ 344,449
                                                =========                              =========

Interest-bearing liabilities:
     Savings deposits                           $  58,921        742      1.68         $  37,690      859     3.04
     NOW and money market deposits                 61,764        536      1.16            54,667      823     2.01
     Certificates of deposit                      126,578      3,630      3.82           128,347    5,482     5.69
                                                  -------      -----      ----           -------    -----     ----
         Total interest-bearing deposits          247,263      4,908      2.65           220,704    7,164     4.33
     Borrowed funds                                56,757      1,999      4.70            43,705    1,658     5.06
                                                   ------      -----      ----            ------    -----     ----
         Total interest-bearing liabilities       304,020      6,907      3.03           264,409    8,822     4.45
Other non-interest bearing liabilities             78,213                                 59,776
                                                   ------                                 ------
Total liabilities                                 382,233                                324,185
Stockholders' equity                               22,941                                 20,264
                                                   ------                                 ------
Total liabilities and
     stockholders' equity                       $ 405,174                              $ 344,449
                                                =========                              =========

Net interest income/
     interest rate spread (4)                               $ 10,562      3.25%                   $ 8,703     2.84%
                                                            ========      ====                    =======     ====

Net interest margin (5)                                                   3.79%                               3.62%
                                                                          ====                                ====

Ratio of interest-earning assets to
     interest-bearing liabilities                                         1.22x                               1.21x
                                                                          ====                                ====


(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.
</TABLE>

                                       12
<PAGE>




Comparison  of Operating  Results for the Three Months Ended  September 30, 2002
and 2001

General

The Company reported net income of $676,000, or basic earnings per share of $.47
and diluted earnings per share of $.45 for the quarter ended September 30, 2002,
compared to $435,000,  or basic earnings per share of $.30 and diluted  earnings
per share of $.29,  for the prior year  period.  The  increase in net income was
attributable  primarily to a $602,000,  or 21.1% increase in net interest income
after  provision  for loan losses and an increase in other  operating  income of
$276,000, or 48.4%. Offsetting those increases was a $510,000, or 18.5% increase
in other operating expenses.

Interest Income

Interest income, on a fully taxable  equivalent basis,  increased  $223,000,  or
4.0%,  for the three months  ended  September  30,  2002,  compared to the three
months ended September 30, 2001. This increase was  attributable to the increase
in the average balance of  interest-earning  assets of $61.2 million,  or 20.4%,
from $301.0  million for the three months ended  September  30, 2001,  to $362.2
million for the three  months  ended  September  30,  2002.  The increase in the
average  balance of  interest  earning  assets was offset in part by a 100 basis
point  decrease in the average yield on  interest-earning  assets from 7.40% for
the three months ended  September  30, 2001,  to 6.40% for the  comparable  2002
period.   The  decrease  in  average  yield  on   interest-earning   assets  was
attributable  to a 122  basis  point  decrease  in  yield  on  securities,  net,
(exclusive  of municipal  obligations)  which  declined from 6.34% for the three
months ended  September 30, 2001, to 5.12% for the three months ended  September
30, 2002. The average yield on loans receivable,  net, decreased 78 basis points
from 8.46% for the three  months  ended  September  30,  2001,  to 7.68% for the
comparable 2002 period. Partially offsetting the decline in yield from period to
period  was the $25.0  million,  or 18.3%  increase  in the  average  balance of
securities,  net,  (exclusive of municipal  obligations) from $136.5 million for
three months ended  September 30, 2001,  to $161.5  million for the three months
ended  September 30, 2002. The average  balance of loans,  net,  increased $34.0
million,  or 21.5% from $158.1 million for the three months ended  September 30,
2001, to $192.1 million for the comparable 2002 period.

Interest Expense

Interest expense for the three months ended September 30, 2002 was $2.3 million,
compared to $2.6  million for the three  months  ended  September  30,  2001,  a
decrease of $359,000,  or 13.6%.  The decrease was  attributable  to a 124 basis
point decrease in the average cost of  interest-bearing  liabilities  from 4.39%
for the three  months  ended  September  30, 2001 to 3.15% for the three  months
ended September 30, 2002. The decrease in average cost was partially offset by a
$48.9   million,   or  20.4%,   increase  in  the   average   balance  of  total
interest-bearing  liabilities  from $240.4  million for the three  months  ended
September  30, 2001 to $289.3  million for the three months ended  September 30,
2002. The increase in average interest-bearing liabilities reflects increases of
$37.8  million in the average  balance of  interest-bearing  deposits  and $11.2
million in the balance of borrowed funds when compared to the prior year period.

Interest  expense  on  interest-bearing  deposits  for the  three  months  ended
September  30, 2002  decreased  $467,000,  or 22.4%,  to $1.6  million from $2.1
million for the corresponding 2001 period.  This decrease was primarily due to a
148 basis point decrease in the average rate paid on  interest-bearing  deposits
from  4.23%  for  three  months  ended  September  30,  2001  to  2.75%  for the
corresponding  period in 2002.  Offsetting the decrease in the average rate paid
was an  increase in the average  balance of  interest-bearing  deposits of $37.8
million for the three months  ended  September  30, 2002 from the  corresponding
period in 2001. The increase in the average balance of interest-bearing deposits
was the result of increases in the average balance of savings  deposits of $28.2
million, or 67.4%, and in the balances of NOW and money market deposits of $12.9
million,  or 48.2% from period to period.  The  increase in average  balances of
interest-bearing  deposits is the result of the Company's  branch  expansion and
the  development  of  competitive  deposit  products  that meet the needs of its
commercial and consumer customers.

                                       13
<PAGE>

Interest expense on borrowed funds increased  $108,000,  or 19.4%, from $557,000
for the three months ended  September 30, 2001, to $665,000 for the three months
ended  September 30, 2002.  The increase was primarily due to an increase in the
average balance of borrowed funds of $11.2 million, or 25.6%, from $43.8 million
for the three months  ended  September  30, 2001 to $55.0  million for the three
months ended September 30, 2002.  Offsetting the increase in the average balance
was a 25 basis point  decrease in the average cost of borrowed  funds from 5.09%
for the 2001 period, to 4.84% for the 2002 period.

Net Interest  Income

Net interest  income on a fully  taxable  equivalent  basis
increased  by $582,000,  or 19.8%,  from $2.9 million for the three months ended
September  30, 2001,  to $3.5 million for the three months ended  September  30,
2002.  The average  cost of total  interest-bearing  liabilities  for the period
decreased  124 basis  points  from 4.39% in the 2001 period to 3.15% in the 2002
period.  The  average  yield on total  interest-earning  assets  for the  period
decreased  100 basis  points  from 7.40% in the 2001 period to 6.40% in the 2002
period.  The net interest rate spread increased by 24 basis points from 3.01% in
the 2001 period, to 3.25% in the 2002 period.

Provision for Loan Losses

The Company made a $60,000  provision for loan losses for the three months ended
September  30,  2002,  compared to a $75,000  provision  for loan losses for the
three months ended  September  30, 2001.  The  provision for loan losses for the
three months ended  September 30, 2002  reflects  management's  qualitative  and
quantitative assessment of the loan portfolio, net charge-offs and collection of
delinquent  loans.  The allowance  for loan losses  amounted to $2.2 million and
$2.0 million at September  30, 2002 and  December  31, 2001,  respectively.  The
allowance  for loan  losses  as a  percentage  of loans  was  1.11% and 1.13% at
September 30, 2002 and December 31, 2001, respectively.

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

<TABLE>
<CAPTION>

                                                              September 30, 2002       December 31, 2001
                                                                          (Dollars in thousands)
Non-accrual loans:
        <S>                                                                <C>                    <C>
     Commercial and industrial loans                               $      126             $    153
     Consumer loans                                                        52                   25
                                                                           --                   --
         Total non-accrual and non-performing loans                       178                  178
                                                                          ---                  ---


Allowance for loan losses as a percentage
     of loans (1)                                                         1.11   %             1.13   %
Allowance for loan losses as a percentage
     of total non-performing loans                                    1,243.26   %         1,139.33   %
Non-performing loans as a percentage of loans (1)                          .09   %              .10   %

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

</TABLE>


                                       14
<PAGE>


Other Operating Income

Other operating income increased  $276,000,  or 48.4%, to $846,000 for the three
months ended September 30, 2002.  Service charges on deposit accounts  increased
$187,000,  or 72.5%,  reflecting  overall growth in the depositor  base, and the
introduction of new and electronic banking services. Included in other operating
income  was a $66,000,  or 53.7%,  increase  in net gain on sale of  residential
loans  attributable  to  an  overall  increase  in  residential   mortgage  loan
production resulting from a more favorable interest rate environment.

Other Operating Expense

Other operating expense increased $510,000,  or 18.5%, from $2.8 million for the
three months  ended  September  30,  2001,  to $3.3 million for the three months
ended  September 30, 2002.  The increase  resulted  primarily  from increases in
salaries  and  employee  benefits,  premises and  equipment  expense,  and other
expense for the three months ended September 30, 2002 attributable to the Bank's
branch expansion.

Income Taxes

Income taxes increased  $127,000,  or 56.2%,  from $226,000 for the three months
ended  September 30, 2001, to $353,000 for the three months ended  September 30,
2002, as a result of the increase in income  before income taxes.  The effective
tax  rates  for the three  months  ended  September  30,  2002 and  those  ended
September 30, 2001 were 34.3% and 34.2%, respectively.

Comparison of Operating Results for the Nine Months Ended September 30, 2002 and
2001

General

The Company reported net income of $2.2 million,  or basic earnings per share of
$1.52,  and  diluted  earnings  per  share of $1.47  for the nine  months  ended
September 30, 2002,  compared to net income of $1.5 million,  or basic  earnings
per share of $1.02,  and diluted  earnings per share of $1.00 for the prior year
period. The increase in net income was primarily  attributable to an increase in
net interest income after  provision for loan losses of $1.7 million,  or 20.2%,
and an increase in other  operating  income of  $928,000,  or 61.6%.  Offsetting
those  increases  was a $1.6  million,  or 20.1%  increase  in  other  operating
expenses.

Interest Income

Interest income, on a fully taxable equivalent basis, decreased $56,000, or .3%,
from the nine  months  ended  September  30,  2001,  to the  nine  months  ended
September 30, 2002. The decrease was  attributable  to a decrease in the average
yield on  interest-earning  assets of 101 basis  points  from 7.29% for the nine
months ended  September 30, 2001,  to 6.28% for the nine months ended  September
30,  2002.  The  decrease  in  average  yield  on  interest  earning-assets  was
attributable  to a 124  basis  point  decrease  in  yield  on  securities,  net,
(exclusive of municipal obligations) and a decrease of 96 basis points on loans,
net. From period to period, the average yield on securities  declined from 6.25%
to  5.01%  and the  average  yield  on  loans  declined  from  8.62%  to  7.66%.
Substantially  offsetting those declines in yield from period to period,  was an
increase in the average  balance of  securities,  net,  (exclusive  of municipal
obligations) of $18.1 million, or 11.4%, from $159.2 million for the nine months
ended  September 30, 2001, to $177.3 million for the nine months ended September
30, 2002. Similarly, the average balance of loans, net, increased $38.5 million,
or 26.1%,  from $147.9 million for the nine months ended  September 30, 2002, to
$186.4 million for the nine months ended September 30, 2002.

                                       15
<PAGE>

Interest Expense

Interest  expense for the nine months ended September 30, 2002 was $6.9 million,
compared  to $8.8  million for the nine  months  ended  September  30,  2001,  a
decrease of $1.9  million,  or 21.7%.  The decrease in interest  expense was the
result of a 142 basis point  decrease in the  average  cost of  interest-bearing
liabilities from 4.45% for the nine months ending September 30, 2001 as compared
to 3.03% for the nine months ended  September 30, 2002.  The decrease in average
cost was offset by a $39.6 million,  or 15.0% increase in the average balance of
total  interest-bearing  liabilities  from $264.4 million for the 2001 period to
$304.0  million for the 2002 period.  The  increase in average  interest-bearing
liabilities  reflects  a  $26.6  million  increase  in the  average  balance  of
interest-bearing deposits and a $13.1 million increase in the average balance of
borrowed funds when compared to the prior year period.

Interest  expense  on  interest-bearing  deposits  for  the  nine  months  ended
September 30, 2002 decreased $2.3 million,  or 31.5%,  to $4.9 million from $7.2
million for the corresponding 2001 period.  This decrease was primarily due to a
168 basis point decrease in the average rate paid on  interest-bearing  deposits
from  4.33%  for the nine  months  ended  September  30,  2001 to 2.65%  for the
corresponding  period in 2002.  Offsetting the decrease in the average rate paid
was a $26.6 million increase in the average balance of interest-bearing deposits
of for the nine months ended September 30, 2002 from the corresponding period in
2001. The increase in the average balance of  interest-bearing  deposits was the
result of increases in the average balance of savings deposits of $21.2 million,
or 56.3%,  and NOW and money  market  deposits  of $7.1  million,  or 13.0% from
period to period. The increase in average balances of interest-bearing  deposits
is the  result  of  the  Company's  branch  expansion  and  the  development  of
competitive  deposit products that meet the needs of its commercial and consumer
customers.

Interest  expense on borrowed funds for the nine months ended September 30, 2002
increased  $341,000,  or  20.6%,  to $2.0  million  from  $1.7  million  for the
corresponding 2001 period. The increase was primarily due to a $13.1 million, or
29.9%,  increase in the average balance of borrowed funds from $43.7 million for
the nine months ended  September  30, 2001 to $56.8  million for the nine months
ended  September 30, 2002.  Offsetting the increase in the average balance was a
36 basis point decrease in the average cost of borrowed funds from 5.06% for the
2001 period, to 4.70% for the 2002 period.

Net Interest Income

Net  interest  income on a fully  taxable  equivalent  basis  increased  by $1.9
million,  or 21.4%,  from $8.7 million for the nine months ended  September  30,
2001, to $10.6 million for the nine months ended September 30, 2002. The average
cost of total  interest-bearing  liabilities for the period  decreased 142 basis
points  from 4.45% in the 2001 period to 3.03% in the 2002  period.  The average
yield on interest-earning  assets for the period decreased 101 basis points from
7.29% in the 2001  period to 6.28% in the 2002  period.  The net  interest  rate
spread  increased by 41 basis points from 2.84% in the 2001 period,  to 3.25% in
the 2002 period.

Provision for Loan Losses

The Company made a $210,000  provision for loan losses for the nine months ended
September 30, 2002, compared to a $75,000 provision for loan losses for the nine
months ended  September  30,  2001.  The  provision  for loan losses is based on
analysis of the loan  portfolio  and reflects an amount,  which in  management's
judgment  is  adequate  to provide  for  probable  loan  losses in the  existing
portfolio.

                                       16
<PAGE>


Other Operating Income

Other operating  income  increased  $928,000,  or 61.6%, to $2.4 million for the
nine months  ended  September  30,  2002.  Service  charges on deposit  accounts
increased  $498,000,  or 63.1%,  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.  Gain on sale of residential  loans increased
$247,000,  or 88.8%, as a result of an overall increase in residential  mortgage
loan production made possible by lower market interest rates.

Other Operating Expense

Other operating expenses increased $1.5 million, or 20.1%, from $7.9 million for
the nine months ended  September  30,  2001,  to $9.4 million in the nine months
ended September 30, 2002. Increases in salaries and employee benefits,  premises
and equipment expense, and other expense for the nine months ended September 30,
2002 are a result of the Bank's continuing branch expansion.

Income Taxes

Income taxes  increased  $375,000,  or 48.5%,  from $773,000 for the nine months
ended  September 30, 2001,  to $1.1 million for the nine months ended  September
30, 2002 and was attributable to the increase in income before income taxes. The
effective  tax rate for the nine  months  ended  September  30,  2002 was 34.4%,
compared to 34.3% for the nine months ended September 30, 2001.

Liquidity

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

The Company's  liquid assets  consist of cash and due from banks,  federal funds
sold, interest-earning deposits with other financial institutions and securities
classified as  available-for-sale,  less securities  pledged as collateral.  The
Company has  established a minimum  liquidity  level,  average  liquid assets to
average  assets,  at 10%.  Average  balances  are  derived  from  average  daily
balances.  During the three  months ended  September  30,  2002,  the  Company's
average minimum liquidity level was 26.1%.

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 $6.5 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 8.3% of the  Company's  assets at September 30,
2002, which enable it to borrow funds on a secured basis. The Company could also
engage in other forms of borrowings, including reverse repurchase agreements.

At September 30, 2002, the Company's  borrowings  consisted of  convertible  and
medium term advances from the FHLB.  The  convertible  feature of these advances
allows the FHLB, at a specified call date and quarterly  thereafter,  to convert
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.  The  convertible  advances  are  secured by various
mortgage-backed and callable U.S. agency securities.

                                       17
<PAGE>

<TABLE>
<CAPTION>



     At September 30, 2002, convertible and medium term advances outstanding were as follows:

                                                                               Call                Contractual
                                        Amount              Rate               Date                 Maturity
        <S>                              <C>                <C>              <C>                     <C>
    Convertible advance          $     14,000,000           5.49  %        02/19/2003             02/19/2008
    Convertible advance                15,000,000           4.59           01/21/2003             01/21/2009
    Convertible advance                14,000,000           4.97           01/19/2004             01/19/2011
    Convertible advance                 3,000,000           4.11           12/11/2005             12/11/2011
    Medium term advance                 4,000,000           3.31           12/11/2003             12/11/2003
    Medium term advance                 5,000,000           3.99           12/13/2004             12/13/2004
                                        ---------
                  Total          $     55,000,000
</TABLE>

The primary  investing  activities of the Company are the purchase of securities
available-for-sale  and the origination of loans. During each of the nine months
ended  September 30, 2002, and 2001, the Company's  purchases of securities that
were  classified  available-for-sale  totaled $644.8 million and $829.7 million,
respectively.  Loan originations,  net of principal repayments on loans, totaled
$20.7  million and $31.8  million for the nine months ended  September 30, 2002,
and 2001,  respectively.  Borrowings,  principal  repayments  and  maturities of
securities were used primarily to fund those activities.

Capital Resources

The Bank is subject to the risk based  capital  guidelines  administered  by the
banking  regulatory  agencies.  The  guidelines  currently  require all banks to
maintain  a minimum  ratio of total risk  based  capital to total risk  weighted
assets of 8%, including a minimum ratio of Tier 1 capital to total risk weighted
assets of 4% and a Tier 1 capital to average  adjusted  assets of 4%. Failure to
meet minimum capital  requirements can initiate certain mandatory,  and possibly
additional discretionary actions by regulators,  that, if undertaken, could have
a direct material effect on the Bank's financial statements.  As of December 31,
2001,  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 the FDIC and the New York State Banking
Department, the Bank must meet certain measures of capital adequacy with respect
to leverage and risk-based  capital. As of September 30, 2002, the Bank exceeded
those  requirements with a leverage capital ratio,  risk-based capital ratio and
total-risk based capital ratio of 6.65%, 10.74%, and 11.65%, respectively.

On May 24, 2001, the Company announced a plan for a stock repurchase  program to
acquire an  additional  75,000  shares of the  outstanding  common  stock of the
Company.  As of September  30,  2002,  no  repurchases  had been made under this
program.  The plan for the repurchase  program was undertaken because management
believed  that the  repurchase  of shares would  enhance  shareholder  value and
provide additional  liquidity for otherwise thinly traded shares. The repurchase
program,  which  remains in effect,  generally  will be  conducted  through open
market purchases, although unsolicited negotiated transactions or other types of
repurchases may be considered.  Management does not believe the stock repurchase
will adversely affect the strong liquidity or capital  positions of the Company,
its  designation  as   well-capitalized   or  its  compliance  with  established
regulatory capital requirements. At September 30, 2002, the Company held 336,900
shares of treasury stock at an average cost of $12.40 per share.



Item 3.       Quantitative and Qualitative Disclosures About Market Risk

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

                                       18
<PAGE>

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

At  September  30,  2002,  60.4% of the  Company's  gross  loans had  adjustable
interest  rates and its loan portfolio had an average  weighted  maturity of 8.9
years. At that date,  $39.1 million,  or 24.0%, of the Company's  securities had
adjustable  interest rates, and its securities  portfolio had a weighted average
maturity of 2.5 years.  At September 30, 2002,  the Company had $51.7 million of
certificates of deposit with maturities of one year or less and $22.5 million of
deposits  over  $100,000,  which tend to be less stable  sources of funding when
compared  to  core  deposits,  and  which  represented  25.7%  of the  Company's
interest-bearing   liabilities.  In  a  rising  interest  rate  environment  the
Company's interest-bearing liabilities may adjust upwardly more rapidly than the
yield on its adjustable-rate assets. Thus, due to the Company's level of shorter
term  certificates  of deposit,  the  Company's  cost of funds may increase at a
greater  rate in a rising rate  environment  than if it had a greater  amount of
core deposits which,  in turn, may adversely  affect net interest income and net
income.

The Company's  interest rate sensitivity is monitored by management  through the
use of a quarterly  interest  rate risk analysis  model which  evaluates (i) the
potential  change in the net interest  income over the  succeeding  four quarter
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.

<TABLE>
<CAPTION>

At September  30, 2002,  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:

             Change in                   Potential Change in                       Potential Change in
           Interest Rates                Net Interest Income                  Net Economic Value of Equity
           in Basis Points             $ Change      % Change                  $ Change          % Change
                                                           (Dollars in thousands)
<S>             <C>                  <C>               <C>                            <C>          <C>
                200                  $   (35)          (0.24) %                 $  (1,706)       (6.14) %
                100                      (16)          (0.11)                      (1,845)       (6.64)
              Static                      --             --                            --           --
               (100)                     (88)          (0.61)                      (3,226)      (11.61)
               (200)                    (564)          (3.91)                      (4,173)      (15.02)
</TABLE>



ITEM 4.       CONTROLS AND PROCEDURES

1 Evaluation  of  disclosure  controls  and  procedures.  The Company  maintains
controls  and  procedures  designed  to ensure that  information  required to be
disclosed in the reports that the Company files or submits under the  Securities
Exchange Act of 1934 is recorded, processed,  summarized and reported within the
time  periods  specified in the rules and forms of the  Securities  and Exchange
Commission.  Based  upon  their  evaluation  of those  controls  and  procedures
performed within 90 days of the filing date of this report,  the Chief Executive
and  Chief  Financial  officers  of the  Company  concluded  that the  Company's
disclosure controls and procedures were adequate.

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

                                       19
<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
           Not applicable.

Item 5.    Other Information
           Not applicable.

Item 6.    Exhibits and Reports on Form 8-K
           a. Exhibits
              11.0  Statement Re: Computation of Per Share Earnings
              99.1  Certification of Chief Executive Officer pursuant to Section
                    906 of Sarbanes- Oxley Act of 2002
              99.2  Certification of Chief Financial Officer pursuant to Section
                    906 of Sarbanes- Oxley Act of 2002

           b. Reports on Form 8K
                      None

                                       20
<PAGE>

                                   SIGNATURES

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



                           LONG ISLAND FINANCIAL CORP.
                                  (Registrant)



Date:    November 13, 2002    By: /s/ Douglas C. Manditch
                                  -----------------------
                                      Douglas C. Manditch
                                      President and Chief Executive Officer


Date:    November 13, 2002    By: /s/ Thomas Buonaiuto
                                  -----------------------
                                      Thomas Buonaiuto
                                      Vice President and Treasurer



                                       21
<PAGE>

                                  CERTIFICATION

I, Douglas C. Manditch, certify, that:

1 I have reviewed this  quarterly  report on Form 10-Q of Long Island  Financial
Corp.;

2 Based on my  knowledge,  the  quarterly  report  does not  contain  any untrue
statement of a material fact or omit to state a material fact  necessary to make
the statements made, in light of the  circumstances  under which such statements
were made, not  misleading  with respect to the period covered by this quarterly
report;

3  Based  on  my  knowledge,  the  financial  statements,  and  other  financial
information  included in this quarterly  report,  fairly present in all material
respects the financial  condition,  results of operations  and cash flows of the
registrant as of, and for, the periods presented in this quarterly report;

4  The  registrant's  other  certifying  officers  and  I  are  responsible  for
establishing and maintaining  disclosure  controls and procedures (as defined in
Exchange Act Rules 13a-14 and 15d-14) for the registrant and we have:

     1 designed such disclosure  controls and procedures to ensure that material
     information   relating  to  the  registrant,   including  its  consolidated
     subsidiaries,  is  made  known  to  us by  others  within  those  entities,
     particularly  during  the period in which  this  quarterly  report is being
     prepared;

     2 evaluated the effectiveness of the registrant's  disclosure  controls and
     procedures  as of a date  within 90 days prior to the  filing  date of this
     quarterly report (the "Evaluation Date"); and

     3  presented  in  this   quarterly   report  our   conclusions   about  the
     effectiveness  of the  disclosure  controls  and  procedures  based  on our
     evaluation as of the Evaluation Date;

5 The registrant's other certifying officers and I have disclosed,  based on our
most recent evaluation,  to the registrant's auditors and the audit committee of
registrant's board of directors (or persons performing the equivalent function):

     1 all  significant  deficiencies in the design or operation of the internal
     controls which could adversely  affect the  registrant's  ability to record
     process,  summarize and report  financial data and have  identified for the
     registrant's auditors any material weaknesses in internal controls; and

     2 any fraud,  whether or not material,  that  involves  management or other
     employees  who  have  a  significant  role  in  the  registrant's  internal
     controls; and

6 The  registrant's  other  certifying  officers  and I have  indicated  in this
quarterly  report  whether or not there  were  significant  changes in  internal
controls  or in other  factors  that could  significantly  affect  the  internal
controls  subsequent  to the date of our most recent  evaluation,  including any
corrective  actions  with  regard  to  significant   deficiencies  and  material
weaknesses.


   Date: November 13, 2002
                                     /s/ Douglas C. Manditch
                                     -----------------------
                                         Douglas C. Manditch
                                         President & Chief Executive Officer


                                       22
<PAGE>


                                  CERTIFICATION

I, Thomas Buonaiuto, certify, that:

1 I have reviewed this  quarterly  report on Form 10-Q of Long Island  Financial
Corp.;

2 Based on my  knowledge,  the  quarterly  report  does not  contain  any untrue
statement of a material fact or omit to state a material fact  necessary to make
the statements made, in light of the  circumstances  under which such statements
were made, not  misleading  with respect to the period covered by this quarterly
report;

3  Based  on  my  knowledge,  the  financial  statements,  and  other  financial
information  included in this quarterly  report,  fairly present in all material
respects the financial  condition,  results of operations  and cash flows of the
registrant as of, and for, the periods presented in this quarterly report;

4  The  registrant's  other  certifying  officers  and  I  are  responsible  for
establishing and maintaining  disclosure  controls and procedures (as defined in
Exchange Act Rules 13a-14 and 15d-14) for the registrant and we have:

     1 designed such disclosure  controls and procedures to ensure that material
     information   relating  to  the  registrant,   including  its  consolidated
     subsidiaries,  is  made  known  to  us by  others  within  those  entities,
     particularly  during  the period in which  this  quarterly  report is being
     prepared;

     2 evaluated the effectiveness of the registrant's  disclosure  controls and
     procedures  as of a date  within 90 days prior to the  filing  date of this
     quarterly report (the "Evaluation Date"); and

     3  presented  in  this   quarterly   report  our   conclusions   about  the
     effectiveness  of the  disclosure  controls  and  procedures  based  on our
     evaluation as of the Evaluation Date;

5 The registrant's other certifying officers and I have disclosed,  based on our
most recent evaluation,  to the registrant's auditors and the audit committee of
registrant's board of directors (or persons performing the equivalent function):

     1 all  significant  deficiencies in the design or operation of the internal
     controls which could adversely  affect the  registrant's  ability to record
     process,  summarize and report  financial data and have  identified for the
     registrant's auditors any material weaknesses in internal controls; and

     2 any fraud,  whether or not material,  that  involves  management or other
     employees  who  have  a  significant  role  in  the  registrant's  internal
     controls; and

6 The  registrant's  other  certifying  officers  and I have  indicated  in this
quarterly  report  whether or not there  were  significant  changes in  internal
controls  or in other  factors  that could  significantly  affect  the  internal
controls  subsequent  to the date of our most recent  evaluation,  including any
corrective  actions  with  regard  to  significant   deficiencies  and  material
weaknesses.


   Date: November 13, 2002
                                     /s/ Thomas Buonaiuto
                                     --------------------
                                         Thomas Buonaiuto
                                         Vice President & Treasurer

                                       23
<PAGE>

<TABLE>
<CAPTION>

Exhibit 11.0                           Statement Regarding Computation Of Per Share Earnings
                                                             (Unaudited)
                                         (In thousands, except share and per share amounts)

                                                       Three Months Ended                    Nine months Ended
                                                           September 30,                       September 30,
                                                         2002           2001                 2002           2001
<S>                                                <C>                   <C>            <C>                <C>
Net income available to
   common shareholders                             $      676            435           $    2,193          1,482

Total weighted average
   common shares outstanding                        1,446,226      1,439,676            1,444,307      1,457,258

Basic earnings per common share                    $      .47            .30           $     1.52           1.02
                                                   ==========            ===            =========           ====

Total weighted average
   common shares outstanding                        1,446,226      1,439,676            1,444,307      1,457,258

Dilutive effect of stock options using
   the treasury stock method                           57,235         35,202               47,731         22,867

Total average common and common
   equivalent shares                                1,503,461      1,474,878            1,492,038      1,480,125

Diluted earnings per common share                  $      .45            .29           $     1.47           1.00
                                                   ==========            ===           ==========           ====
</TABLE>


                                       24
<PAGE>

Exhibit 99.1 Certification of Chief Executive Officer pursuant to Section 906 of
             Sarbanes- Oxley Act of 2002

In connection with the Quarterly  Report of Long Island  Financial  Corp.,  (the
Company) on Form 10-Q for the period ended  September 30, 2002 as filed with the
Securities and Exchange  Commission on the date hereof (the Report),  I, Douglas
C.  Manditch,  President  & Chief  Executive  Officer of the  Company,  certify,
pursuant  to 18  U.S.C.  1350,  as  adopted  pursuant  to  Section  906  of  the
Sarbanes-Oxley Act of 2002, that:

(1) The Report fully complies with the  requirements  of Section 13(a) or 15 (d)
    of the Securities Exchange Act of 1934; and
(2) The  information  contained in the Report fairly  presents,  in all material
    respects, the financial condition and results of operations of the Company.

                                          /s/ Douglas C. Manditch
                                          -----------------------
                                          President & Chief Executive Officer
                                          November 13, 2002


Exhibit 99.2 Certification of Chief Financial Officer pursuant to Section 906 of
             Sarbanes- Oxley Act of 2002

In connection with the Quarterly  Report of Long Island  Financial  Corp.,  (the
Company) on Form 10-Q for the period ended  September 30, 2002 as filed with the
Securities  and Exchange  Commission on the date hereof (the Report),  I, Thomas
Buonaiuto,  Vice President & Treasurer of the Company,  certify,  pursuant to 18
U.S.C.  1350, as adopted  pursuant to Section 906 of the  Sarbanes-Oxley  Act of
2002, that:

(1) The Report fully complies with the  requirements  of Section 13(a) or 15 (d)
    of the Securities Exchange Act of 1934; and
(2) The  information  contained in the Report fairly  presents,  in all material
    respects, the financial condition and results of operations of the Company.

                                          /s/ Thomas Buonaiuto
                                          --------------------
                                          Vice President & Treasurer
                                          November 13, 2002


                                       25
<PAGE>