Welcome to The First of Long Island Corporation's second quarter 2022 earnings conference call. On the call today are Chris Becker, President and Chief Executive Officer, Jay McConie, Chief Financial Officer, and Bill Aprigliano, Chief Accounting Officer. Today's call is being recorded. A copy of the earnings release is available on the corporation's website at fnbli.com and on the earnings call webpage at www.cstproxy.com/fnbli/earnings. Before we begin, the company would like to remind everyone that this call may contain certain statements that constitute forward-looking statements made under the safe harbor provisions of the U.S. Private Securities Litigation Reform Act of 1995. Such statements are subject to risks, uncertainties, and other factors that may cause actual results to differ materially from those contained in any such statements, including as set forth in the company's filings with the U.S. Securities and Exchange Commission. Investors should also refer to our 2021 10-K filed on March 11, 2022, for a list of risk factors that could cause actual results to differ materially from those indicated or implied by such statements. I would now like to turn the call over to Chris Becker. Thank you. Good afternoon, and welcome to the first quarterly earnings call of The First of Long Island Corporation. Our company works on a mission of continually doing the right thing to help our customers, employees, and shareholders succeed while being socially accountable to the communities we serve. We are committed to making a meaningful impact on stakeholders through ethical intent and strong business practices, and believe these efforts create long-term sustainable value for our constituents. This week, we rolled out a new webpage dedicated to showcasing corporate integrity at The First of Long Island Corporation. Turning to our results, we believe the second quarter and first 6 months of 2022 positively reflect the strategic initiatives we have worked feverishly to implement during the past 2 years, despite the pandemic. Some of these key initiatives include supporting the growth of our balance sheet with profitable relationship banking business. Loans have shown three quarters of strong growth, and deposit growth continues as our relationship teams have been successfully onboarding new customers. Our recent loan growth has exhausted the bank's excess cash position. Management is focused on future asset and loan growth being driven from increases in core deposits. A second initiative has been recruiting seasoned banking professionals with long-standing relationships. Increasingly, as bankers have become frustrated with the lack of responsiveness at their bank, they are seeking us out. The word is getting out that we are the go-to bank in the market for both customers and bankers looking to make a change. A third initiative over the past two years has been optimizing our branch network across a larger geography. We established a three-branch presence on Eastern Long Island in Riverhead, East Hampton, and Southampton. At June 30, 2022, these branches had deposits totaling nearly $60 million. We successfully consolidated 14 branches with minimal customer disruption. We are currently working on 3 branch relocations to much more visible and convenient buildings in Bohemia, Port Jefferson, and Melville. We continue to look for appropriate de novo branch locations to expand our geography. A fourth initiative has been our new branding and a community-first focus to improve name recognition and enhancing our website and social media presence. We celebrate the bank's 95th anniversary on October 1 of this year. We have been using that milestone as the catalyst for our marketing in 2022. Finally, we have been working on moving to a new administrative space in Melville to support our growth. I'm pleased to report that move was completed in the second quarter. Also, I'm happy to report we just entered a conditional contract to sell several buildings in Glen Head. While these initiatives have been successful and helped produce our best six-month performance in the company's history, we do see some headwinds in the second half of 2022. Deposit customers are starting to demand higher rates, and term borrowing rates are generally well north of 3%, putting pressure on our net interest margin. We anticipate the margin could decline over the second half of 2022. How much depends on, among other things, the number and level of Fed moves. The mortgage pipeline is at $125 million, which is down from an average of $164 million from the prior three quarters. We are starting to see customers rethink real estate deals in this high rate and inflationary environment. We currently anticipate new loan originations in the second half of 2022 will be lower than the first half of 2022. There could be pressure on fee income as the bank recently revamped its consumer overdraft charges by instituting a grace limit of $50 where there will be no charge. Reducing our overdraft charge from $38 to $15 for overdrafts over $50. Charging for one item, not multiple items. Eliminating the daily charge for remaining overdrawn, and eliminating the charge on return items. These changes will take effect August 1, 2022. Jay McConie will now take you through some highlights of the second quarter and year to date. Jay? Thank you, Chris. Net income for the second quarter and six months ended June 30, 2022 grew by 8.4% and 9.6% respectively to $12.5 million and $24.6 million when compared to the same period last year. The growth in net income was driven by another strong quarter of mortgage loan originations of $236 million, bringing total mortgage loan originations to $497 million for the year. Weighted average rate on new mortgage loans continues to improve and was 3.51% for the quarter, and should increase significantly as our current loan pipeline of $125 million has a weighted average rate of 4.40%. Strong loan originations over the past two quarters increased our period end total loan balance to $3.3 billion, an increase of $230 million or 7.4% when compared to December 31, 2021. Commercial and industrial loans, which were $108 million at June 30, 2022, an increase of $17.7 million or 19.5% compared to December 31, 2021, is a key part of our strategic initiatives as we continue to grow our relationship business and further diversify our portfolio. Our net interest margin for the quarter was 2.97%, an increase of 26 basis points when compared to the same quarter last year. Improvement in our margin was due to the following factors. First, reinvestment rates on mortgage-backed securities have improved and were in the 3.75%-4.40% range, depending on average life and duration. Second, the $119 million floating rate corporate bond portfolio, which reprices quarterly based on a 10-year swap rate, continued to improve with the increase in long-term rates. Third, the cost of funds on interest-bearing liabilities improved by 16 basis points as the bank was able to maintain the cost of funds on its $1.7 billion savings and money market deposit portfolio at 18 basis points. Four, the maturity and downward repricing on certain brokered time deposits and Federal Home Loan Bank advances over the past year. Finally, the average balance on non-interest-bearing checking accounts improved $140.9 million or 11% to $1.5 billion. As Chris mentioned in his remarks, customers are starting to demand higher rates. The pressure to increase deposit rates could intensify with the Federal Reserve Bank just announcing another 75 basis point increase in the Fed funds rate at their July meeting, and remain on target to increase that rate to between 3.25%-3.50% by the end of 2022. Current wholesale funding costs are near 3.5% on all terms between 6 months and 5 years as the yield curve continues to flatten. A flattening or inverted curve, yield curve could result in downward pressure on both net interest income and margin as our ability to delay increasing deposit rates on non-maturity deposits becomes more difficult the longer the duration of the rising rate cycle. Our ability to further increase yields on interest-earning assets could be limited to offset our rising funding costs if the yield curve remains flat or inverted for an extended period. Moving on to asset quality. The bank's non-accrual loans were just $260,000 on June 30, 2022, and we have had $125,000 in net charge-offs during the current year. We had a provision of $726,000 for the quarter, which was mostly attributable to loan growth, partially offset by lower historical loss rates. Bank's reserve coverage ratio was 93 basis points on June 30, 2022, a decrease of 3 basis points from 96 basis points on December 31, 2021. While the banking industry released reserves during 2021 and the first quarter of 2022 due to improving economic conditions, as the COVID pandemic waned, current inflation rates and aggressive tightening by the Federal Reserve, as well as a slowdown in GDP, could see this industry trend reverse in coming quarters. Management is cognizant of the economic headwinds and has not relaxed our lending standards during this period of loan growth. Moving on. Non-interest income increased $695,000, excluding $606,000 gains on sales of securities in 2021 for the six months ended June 30, 2022. As noted in our earnings release, the increase was due to a final transition payment of $477,000 from LPL Financial for the conversion of the bank's retail broker and advisory accounts. The increase includes higher fees from a pickup in debit and credit card activity and additional income from bank-owned life insurance as we purchased an additional $20 million in December 2021. We currently anticipate a run rate of approximately $3 million per quarter for the second half of 2022. Non-interest expense came in at $16.4 million for the second quarter, an increase of approximately $600,000 when compared to the same period last year and the three months ended March 31, 2022. As noted in our earnings release, the increase in non-interest expense. Was due to higher salary and benefit costs as open positions were filled during the quarter, higher incentive costs due to loan origination volumes, and additional occupancy costs related to the relocation of our new corporate office location. We currently anticipate a quarterly run rate of approximately $16.7 million per quarter for the second half of 2022. Our priority at The First of Long Island Corporation remains to grow the balance sheet profitably, pay dividends to our shareholders, and when appropriate, repurchase shares. During the quarter, we bought back approximately 286,011 shares at a price of $18.49. We have approximately $23 million remaining in our current authorization, and we anticipate this program could continue during the second half of 2022, given our strong leverage ratio of 9.8%. In addition, on July 1, 2022, we announced the declaration of our second quarter dividend of $0.20 per share, which represents a 5.3% increase over the dividend paid the same quarter last year. Finally, we anticipate our tax rate for the remainder of 2022 to be approximately 20%. With that, I turn it back to our operator for questions. Thank you. Our first question for today comes from Alex Twerdahl from Piper Sandler. Hey, good afternoon, guys. Alex. Hey, Alex. How are you? Hey, how you doing? I'm good, thanks. All right, thanks. Pleased to hear the first earnings call here. Wanted to ask a couple questions, couple follow-ups from your prepared remarks. First off, Chris, I think you mentioned that the fairly strong loan growth that you've seen over the last couple of quarters is likely to abate a little bit in the second half of the year. I noticed that the mix shift is a little bit different this quarter, and you actually put on a bit more residential relative to the commercial real estate. I'm just curious if those comments apply to the overall portfolio or just to the commercial real estate portfolio, and maybe you can make up some of the excess with a bit more on the resi side. No, it's actually both portfolios. The residential side, because of the rate increases, obviously you're seeing refis dry up on that. You know, also the very high housing prices, I think is keeping some people on the sidelines combined with the high interest rates. You're seeing both pipelines. We give you a total pipeline number, but both pipelines are reducing. Okay. Then I know that you guys have brought on a number of new bankers over the last couple of years, early across your market. I was wondering if you could kind of share with us sort of where you are in that process. I know you mentioned, you know, being the go-to bank for not just customers, but also for bankers. Sort of, you know, if there is a little bit of a pipeline that's built from some of these people coming on board and whether or not that could continue even in the higher rate environment. It is. I mean, we've added, you know, as you know, a middle market team of four. We rebuilt our residential team. We added recently a South Fork team leader for the East End, the South Fork on the East End. We've added some people to both our Nassau and Suffolk teams. That business, you know, has been good. As I indicated in my comments, they're onboarding new customers, you know, focused on relationships, bringing in commercial deposits, lines of credit. Our line utilizations have been up a little bit. So that business has been good. You know, as you know, that's a smaller percentage of our portfolio, but it is growing. I think when you look at the slowdown, it's related mainly to the mortgage business. We'll say the CRE business, multifamily, residential mortgages. Our momentum is pretty good on the C&I side. Okay, great. Just another question from me. I think you mentioned you're selling some buildings in Glen Head. Is that gonna have any impact on gains or book value or anything like that in the third quarter? Right now we're not gonna disclose, you know, the financials of the contract. Those properties, Alex, back at 12/31, we did in our Q list those as available for sale. Any properties would have been, you know, reduced to marked to market there. They're carried at that cost. Okay, great. Thanks for taking my questions. Thanks, Alex. All right. Our next question for today comes from Christopher O'Connell with KBW. Please proceed with your question. Hey, good afternoon. Hi, Chris. Good afternoon, Chris. I wanted to start on the deposit comments, you know, around deposit rates kind of increasing going forward. You know, maybe quantifying, you know, where you guys are at on deposit rates now or, you know, where you think you're gonna be in moving rates to in the third quarter, or any data assumptions that you might be using for this cycle. Hi, it's Jay, Chris. How are you? Good. Hey, Jay. Good. You know, we're not gonna disclose data assumptions, but you know, looking at it, obviously the bank, you know. The reason why we kind of discussed some of those things in our opening remarks is, you know, the bank is liability sensitive. You know, it's traditionally been that way with, you know, having a little bit more longer duration fixed assets and a little bit less C&I portfolios as other commercial banks. You know, so you know, right now, you know, looking at a. The increase of, say, 100 basis points, you know, shock, you know, we're probably sensitive about, you know, negative 3% or so. You know, up 100 basis points, which we think is kind of the most likely scenario being where we are with the Fed and, you know, hopefully where we think, you know, they have to go from this point forward based on their guidance of where the Fed funds target rate would be. Chris, this is Chris. Specifically on rates on our CD rates, pretty much from one year out through five years, we're at 2%, and 2% plus on those rates. Our money market now and savings, like most banks, those rates remain low. We're gonna see some pressure on that, both from business and consumer and also municipal customers. Those rates are starting to move up quickly. You know, you can see some rates in those accounts now north of 1%. Got it. That's helpful. For the securities book, what's the duration on the overall book? Is there any plans to, you know, move the securities book into loans and mix shift a little bit going forward? Do you expect that to hold more or less kind of flat going forward? No, Chris, it's Jay. The average life on the portfolio is probably right around 5 years. You know, as far as when you look at our liquidity levels, when securities rates were like 1% or so, you know, we really kind of looked at it and said, we want to you know, lower the securities portfolio and put more money into loans. Now with rates, you know, where they are and in the MBS sector, we can kind of get a little bit above a 4 handle. We're actively looking to put a little bit more money into the securities portfolio. You know, really just replacement. As securities roll off, we're gonna replace and go into and keep it around flat. Whereas maybe a year ago, we were letting those securities portfolios, security cash flows go into loans. It should be fairly flat for the rest of the year. Got it. That makes sense. On the opening comments, I think you said what the new origination yield was on the pipeline into 3Q. I believe it had a four handle on it, but I missed it. Do you mind just repeating that? Yeah. It's right around 4.40%, the weighted average yield. You know, up from- Okay. Yeah. In the first quarter, it was about $350. Yeah, really nice pick up there. Great. On the fee income, you know, I appreciate the guidance there. Just trying to, you know, figure out the parts. For the NSF fees, what do you think that impact in and of itself is going into the third quarter? This is Chris. The change in the program on the consumer side, and we didn't change anything on the business side. On the consumer side, on an annualized basis, that could be approximately $200,000 annually. Now we've Okay. Been picking up, you know, some momentum on the debit card interchange fees and some service charges, things like that were down during the pandemic. That's why we're still kind of guiding the quarterly non-interest income number to be fairly consistent. Those are the impacts of the pieces. Chris, it's Jay. Also, and I put in my remarks, you know, we purchased an additional $20 million of BOLI. You know, that incremental income will help to offset somewhat, you know, if there's a loss in overdraft fees. Again, the BOLI portfolio, you know, while it's, you know, it increases as the cash surrender value goes up each quarter, so you're getting a little bit more income just, you know, through the cash surrender value increasing. Then, you know, as interest rates go up, it's part of the insurance company's portfolio. You should see the yield on that also contribute. We do think there is some tailwinds to allow the BOLI income to also increase and complement the credit card activity as well. Great. That's helpful. On the expense side, you know, again, appreciate the guidance there. Very helpful. How are you thinking about, you know, there's a lot of moving parts you guys mentioned, you know, between the Glenhead sales, you know, the new admin space, you know, potential de novo adds and, you know, some other, you know, relocations, you know, going on. How are you thinking about, you know, the growth as you go into 2023? I mean, do these, you know, all these kind of moves in terms of, you know, the building and space management, wash out on a net basis, or does it put you at a little bit of a, you know, a higher growth rate or a lower growth rate going into the next year? Yeah. Chris, it's Jay. I mean, I agree. We have done a lot. We kind of break it down to, you know, two pieces. If you remember last year, we had the branch location closures, and that saved us probably about $1 million in annual non-interest expense. If you look at it from that standpoint, we've also added, you know, the East End locations, the three locations there. We also, as Chris alluded to, put on some of the lending staff. We kind of look at those two kind of offsetting each other. Then when you look at the move to Melville with our new location here and the cost of that, we look and while we announced that we have a contract to sell some of those buildings. Once those buildings are liquidated and we're out of those over to here, that should be fairly cost neutral. You know, all in all, a lot of moving parts with the guidance. You know, we're at $16.5 this quarter. We have it up a little bit around $16.7, which is just really kind of a full headcount run. And also as everybody sees, you know, we have vendors too, high inflationary rates. We negotiate with all vendors, but you know, I'm very cognizant that with deposit pricing pressure, that we have to maintain expense levels fairly flat. That's why we gave that guidance. Our goal with all those moving parts is they're pretty much neutral. It's part of our planning. Great. You know, as we do something, we're always saying, "Okay, we wanna improve here. How do we cut costs here to try to keep that and maintain expense discipline? Yeah, absolutely. Makes sense. All right, great. That's all I had. Thanks for taking my question. Thanks. Thank you. This concludes our question and answer session. I'll turn the floor back to Chris Becker for some final closing comments. Thank you. I wanna thank everyone for their attention and participation on the call today. Once again, we're very pleased with the quarter and look forward to providing additional updates in the coming quarters. Enjoy the rest of your day.