The First of Long Island Corporation (NASDAQ:FLIC) Q4 2022 Earnings Conference Call January 27, 2023 2:00 PM ET Company Participants Chris Becker - President and Chief Executive Officer Jay McConie - Chief Financial Officer Conference Call Participants Alex Twerdahl – Piper Sandler Chris O'Connell - KBW Operator Welcome to the First of Long Island Corporation's Fourth Quarter 2022 Earnings Conference Call. On the call today are Chris Becker, President and Chief Executive Officer; Jay McConie, Chief Financia ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, DC 20549 ____________ FORM 10-Q (Mark One) [X] QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended September 30, 2022 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 number 001-32964 THE FIRST OF LONG ISLAND CORPORATION (Exact name of registrant as specified in its charter) New York 11 ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, DC 20549 ___________ FORM 10-K (Mark One) ý ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the fiscal year ended December 31, 2021 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 number 001-32964 | --- | --- | --- | |-------------------------------------------------------------------------------------- ...

PART I. FINANCIAL INFORMATION [Item 1. Financial Statements (Unaudited)](index=3&type=section&id=ITEM%201.%20Financial%20Statements%20(Unaudited)) The unaudited statements show a slight asset increase to $4.10 billion and higher net income of $34.1 million for the nine-month period [Consolidated Balance Sheets](index=3&type=section&id=Consolidated%20Balance%20Sheets) Consolidated Balance Sheet Highlights (in thousands) | Account | September 30, 2021 | December 31, 2020 | | :--- | :--- | :--- | | **Total Assets** | **$4,096,856** | **$4,069,141** | | Net Loans | $2,871,897 | $3,000,417 | | Investment Securities | $775,747 | $662,722 | | Total Deposits | $3,371,546 | $3,321,588 | | **Total Liabilities** | **$3,676,973** | **$3,662,023** | | **Total Stockholders' Equity** | **$419,883** | **$407,118** | - Total loans decreased from **$3.03 billion** at year-end 2020 to **$2.90 billion** as of September 30, 2021, primarily due to a reduction in residential mortgages and SBA Paycheck Protection Program (PPP) loans[7](index=7&type=chunk) - Total deposits increased, driven by growth in checking and savings accounts, which offset a significant decline in time deposits[7](index=7&type=chunk) [Consolidated Statements of Income](index=4&type=section&id=Consolidated%20Statements%20of%20Income) Consolidated Income Statement Highlights (in thousands, except per share data) | Metric | Nine Months Ended Sep 30, 2021 | Nine Months Ended Sep 30, 2020 | Three Months Ended Sep 30, 2021 | Three Months Ended Sep 30, 2020 | | :--- | :--- | :--- | :--- | :--- | | Net Interest Income | $79,436 | $77,012 | $26,608 | $25,918 | | Provision (Credit) for Credit Losses | $(3,058) | $2,450 | $(1,449) | $— | | **Net Income** | **$34,077** | **$30,674** | **$11,422** | **$10,767** | | **Diluted EPS** | **$1.43** | **$1.28** | **$0.48** | **$0.45** | - Net income for the nine months ended September 30, 2021, **increased by 11.1% year-over-year**, primarily due to a **$5.5 million favorable swing** in the provision for credit losses and a **3.1% increase** in net interest income[11](index=11&type=chunk)[99](index=99&type=chunk) [Consolidated Statements of Changes in Stockholders' Equity](index=6&type=section&id=Consolidated%20Statements%20of%20Changes%20in%20Stockholders'%20Equity) - Stockholders' equity increased from **$407.1 million** at the beginning of 2021 to **$419.9 million** at September 30, 2021[15](index=15&type=chunk)[156](index=156&type=chunk) - Key activities impacting equity during the first nine months of 2021 included: net income of **$34.1 million**, cash dividends declared of **$13.7 million**, and common stock repurchases totaling **$6.3 million**[15](index=15&type=chunk)[156](index=156&type=chunk) [Consolidated Statements of Cash Flows](index=8&type=section&id=Consolidated%20Statements%20of%20Cash%20Flows) Cash Flow Summary (in thousands) | Activity | Nine Months Ended Sep 30, 2021 | Nine Months Ended Sep 30, 2020 | | :--- | :--- | :--- | | Net Cash from Operating Activities | $38,778 | $26,847 | | Net Cash from Investing Activities | $8,681 | $210,240 | | Net Cash from Financing Activities | $425 | $(112,203) | | **Net Increase in Cash** | **$47,884** | **$124,884** | - The significant decrease in cash from investing activities compared to the prior year is primarily due to a higher volume of investment securities purchases (**$268.8 million in 2021** vs **$120.9 million in 2020**) and a smaller net decrease in loans[20](index=20&type=chunk) [Notes to Unaudited Consolidated Financial Statements](index=9&type=section&id=Notes%20to%20Unaudited%20Consolidated%20Financial%20Statements) Investment Securities Portfolio (in thousands) | Security Type | Fair Value (Sep 30, 2021) | Fair Value (Dec 31, 2020) | | :--- | :--- | :--- | | State and municipals | $330,763 | $364,211 | | Pass-through mortgage securities | $212,762 | $131,720 | | Collateralized mortgage obligations | $113,438 | $53,711 | | Corporate bonds | $118,784 | $113,080 | | **Total** | **$775,747** | **$662,722** | Loan Portfolio Composition (in thousands) | Loan Type | Balance (Sep 30, 2021) | Balance (Dec 31, 2020) | | :--- | :--- | :--- | | Commercial mortgages | $1,506,382 | $1,421,071 | | Residential mortgages | $1,215,395 | $1,316,727 | | SBA PPP | $65,505 | $139,487 | | Commercial and industrial | $67,379 | $100,015 | | Other | $46,752 | $56,154 | | **Total Loans** | **$2,901,413** | **$3,033,454** | - The Allowance for Credit Losses (ACL) decreased from **$33.0 million** at year-end 2020 to **$29.5 million** at September 30, 2021, driven by a credit provision of **$3.1 million** reflecting improved economic conditions[49](index=49&type=chunk)[106](index=106&type=chunk) - The company utilizes interest rate swaps to manage interest rate risk, with one swap remaining with a notional amount of **$50 million** as of September 30, 2021[89](index=89&type=chunk)[91](index=91&type=chunk) [Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations](index=22&type=section&id=ITEM%202.%20Management's%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management discusses an 11.1% net income increase driven by higher net interest income and a credit for credit losses Key Performance Metrics (Nine Months Ended Sep 30) | Metric | 2021 | 2020 | | :--- | :--- | :--- | | Net Income | $34.1 million | $30.7 million | | Diluted EPS | $1.43 | $1.28 | | Return on Average Assets (ROA) | 1.09% | 0.98% | | Return on Average Equity (ROE) | 10.96% | 10.49% | | Net Interest Margin | 2.70% | 2.64% | - The increase in net interest income was driven by a favorable funding mix shift, with average checking deposits growing by **$247.9 million**, and higher income from SBA PPP loans of **$3.2 million**[100](index=100&type=chunk)[120](index=120&type=chunk) - The company recorded a credit provision for credit losses of **$3.1 million** in the first nine months of 2021, compared to a **$2.5 million provision** in the same period of 2020[106](index=106&type=chunk) - Strategic initiatives include a branch optimization strategy, which resulted in **$1.2 million of expenses** in the period, with an additional **$2.2 million expected** in Q4 2021[107](index=107&type=chunk)[114](index=114&type=chunk)[128](index=128&type=chunk) - The Allowance for Credit Losses (ACL) to total loans ratio was **1.02%** at September 30, 2021 (**1.04% excluding PPP loans**), down from **1.09%** at year-end 2020[109](index=109&type=chunk)[143](index=143&type=chunk) [Item 3. Quantitative and Qualitative Disclosures About Market Risk](index=30&type=section&id=ITEM%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) The company's market risk management focuses on the impact of interest rate changes on Net Interest Income and Economic Value of Equity Interest Rate Sensitivity Analysis (at Sep 30, 2021) | Rate Change Scenario | EVE % Change from Base | NII % Change from Base (1-Year) | | :--- | :--- | :--- | | +300 bps | -6.3% | -0.4% | | +200 bps | -3.2% | +0.2% | | +100 bps | -0.2% | +0.6% | | **Base Case** | **—** | **—** | | -100 bps | -11.6% | -5.1% | - The company's large base of noninterest-bearing checking deposits (**34% of total assets**) helps mitigate the negative impact of rising interest rates on net interest income[170](index=170&type=chunk) - A decrease in interest rates would negatively impact NII and EVE due to the inability to reduce deposit rates below zero[172](index=172&type=chunk) [Item 4. Controls and Procedures](index=32&type=section&id=ITEM%204.%20Controls%20and%20Procedures) Management concluded that disclosure controls and procedures were effective with no material changes to internal controls - Management concluded that disclosure controls and procedures are **effective** as of September 30, 2021[177](index=177&type=chunk) - There were **no material changes** in internal control over financial reporting during the third quarter of 2021[178](index=178&type=chunk) PART II. OTHER INFORMATION [Item 1. Legal Proceedings](index=32&type=section&id=ITEM%201.%20Legal%20Proceedings) Ongoing legal actions are part of normal business and are not expected to have a material adverse impact - The company states that ongoing legal actions are **not expected to have a material adverse impact**[179](index=179&type=chunk) [Item 1A. Risk Factors](index=32&type=section&id=ITEM%201A.%20Risk%20Factors) No material changes to risk factors were reported since the last annual filing - **No material changes** to risk factors were reported since the last Annual Report on Form 10-K[180](index=180&type=chunk) [Item 2. Unregistered Sales of Equity Securities and Use of Proceeds](index=32&type=section&id=ITEM%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) The company repurchased 100,845 shares in Q3 2021 under its existing stock repurchase program Issuer Purchases of Equity Securities (Q3 2021) | Period | Total Shares Purchased | Average Price Paid Per Share | | :--- | :--- | :--- | | July 2021 | — | — | | August 2021 | 100,845 | $21.816 | | September 2021 | — | — | | **Total** | **100,845** | **$21.816** | - The total authorized stock repurchase program is for **$65 million**, of which **$11.1 million remained available** for purchase as of September 30, 2021[183](index=183&type=chunk) [Item 6. Exhibits](index=33&type=section&id=ITEM%206.%20Exhibits) This section lists all exhibits filed with the report, including officer certifications and iXBRL data - Exhibits filed include certifications from the Principal Executive Officer and Principal Financial Officer, as well as iXBRL formatted financial statements[188](index=188&type=chunk)

Company Overview and Strategy - The First of Long Island Corporation (FLIC) has a new bank brand: "Go First Go Far"[5] - The company has 47 branches, with 37 on Long Island, 1 in Manhattan, 6 in Queens, and 3 in Brooklyn[8] - FLIC established a partnership with Financial Resources Group, branding the partnership as First Investments, offering investment management, retirement planning, financial planning, asset management solutions and trust services[9, 10] Financial Performance and Growth - The company has shown steady growth in earnings per share and book value per share over the years[12] - Total deposits have increased from $1503 million in 2011 to $3384 million in 2Q21 YTD[12, 13] - Total loans have increased from $986 million in 2011 to $3033 million in 2Q21[15] - The company's leverage ratio has decreased from 9.97% in 2011 to 7.98% in 2Q21[16] Loan Portfolio - As of 2Q 2021, the loan mix includes 45% in commercial mortgages, 26% in residential mortgages, 17% in commercial loans, 4% in C&I including SBA PPP, 3% in other, and 5% in construction[18] - Commercial mortgage portfolio distribution: Nassau 33%, Suffolk 24%, Brooklyn 15%, Bronx 11%, Manhattan 8%, Queens 4%, Westchester 3%, Other 2% totaling $775.3 million[21] - Other CRE & Owner-Occupied portfolio distribution: Nassau 35%, Suffolk 25%, Queens 13%, Brooklyn 7%, Westchester 5%, New Jersey 4%, Bronx 3%, Other 3%, Manhattan 3% totaling $703.9 million[24] Credit Quality and Deposits - The company maintains strong credit quality, with low levels of non-performing loans and net charge-offs[30, 31] - The deposit mix as of 2Q 2021 includes 39% in checking accounts, 37% in money market accounts, 13% in time deposits, 4% in NOW accounts, and 7% in savings accounts, totaling $3.4 billion[34]

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, DC 20549 ____________ FORM 10-Q (Mark One) [X] QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended June 30, 2021 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 number 001-32964 New York 11-2672906 (State or other jurisdiction of incorporation or organization) (I.R.S. Employer Identifi ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, DC 20549 ____________ FORM 10-Q (Mark One) [X] QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended March 31, 2021 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 number 001-32964 THE FIRST OF LONG ISLAND CORPORATION (Exact name of registrant as specified in its charter) New York 11-267 ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, DC 20549 ___________ FORM 10-K (Mark One) ý ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the fiscal year ended December 31, 2020 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 number 001-32964 | --- | --- | --- | |-------------------------------------------------------------------------------------- ...

PART I. [FINANCIAL INFORMATION](index=3&type=section&id=PART%20I.%20FINANCIAL%20INFORMATION) [Financial Statements (Unaudited)](index=3&type=section&id=ITEM%201.%20Financial%20Statements%20(Unaudited)) Unaudited financial statements reflect the company's financial position, operations, and cash flows, significantly impacted by CECL adoption and increased credit loss provisions due to COVID-19 Consolidated Balance Sheet Highlights (in thousands) | Account | Sep 30, 2020 | Dec 31, 2019 | | :--- | :--- | :--- | | **Assets** | | | | Cash and cash equivalents | $163,852 | $38,968 | | Net loans | $3,003,326 | $3,158,960 | | Total assets | $4,011,308 | $4,097,843 | | **Liabilities & Equity** | | | | Total deposits | $3,248,846 | $3,144,016 | | Total liabilities | $3,613,574 | $3,708,735 | | Total stockholders' equity | $397,734 | $389,108 | - The company participated in the SBA Paycheck Protection Program (PPP), holding **$166.4 million** in PPP loans as of September 30, 2020[8](index=8&type=chunk) [Consolidated Statements of Income](index=4&type=section&id=Consolidated%20Statements%20of%20Income) Net income for the nine months ended September 30, 2020, decreased to $30.7 million, primarily due to a higher provision for credit losses Income Statement Summary (in thousands, except per share data) | Metric | Nine Months Ended Sep 30, 2020 | Nine Months Ended Sep 30, 2019 | Three Months Ended Sep 30, 2020 | Three Months Ended Sep 30, 2019 | | :--- | :--- | :--- | :--- | :--- | | Net Interest Income | $77,012 | $75,583 | $25,918 | $24,894 | | Provision for credit losses | $2,450 | $279 | $0 | $314 | | Net Income | $30,674 | $32,368 | $10,767 | $10,783 | | Diluted EPS | $1.28 | $1.29 | $0.45 | $0.44 | - The company recognized a **$2.6 million gain** on the sale of securities and a **$2.6 million loss** on debt extinguishment in the third quarter of 2020[9](index=9&type=chunk) [Consolidated Statements of Comprehensive Income](index=5&type=section&id=Consolidated%20Statements%20of%20Comprehensive%20Income) Total comprehensive income decreased to $29.2 million, driven by a net loss in Other Comprehensive Income primarily from unrealized losses on derivatives Comprehensive Income (in thousands) | Component | Nine Months Ended Sep 30, 2020 | Nine Months Ended Sep 30, 2019 | | :--- | :--- | :--- | | Net Income | $30,674 | $32,368 | | Other Comprehensive Income (Loss) | $(1,454) | $8,645 | | **Comprehensive Income** | **$29,220** | **$41,013** | [Consolidated Statements of Changes in Stockholders' Equity](index=6&type=section&id=Consolidated%20Statements%20of%20Changes%20in%20Stockholders%27%20Equity) Stockholders' equity increased to $397.7 million, driven by net income, partially offset by dividends, share repurchases, and CECL adoption adjustments - The adoption of ASU 2016-13 (CECL) on January 1, 2020, resulted in a **$2.3 million** decrease to retained earnings[14](index=14&type=chunk) - During the first nine months of 2020, the company repurchased **261,700 shares** of common stock for **$5.9 million** and declared cash dividends totaling approximately **$13.1 million**[14](index=14&type=chunk) [Consolidated Statements of Cash Flows](index=8&type=section&id=Consolidated%20Statements%20of%20Cash%20Flows) Cash and cash equivalents increased by $124.9 million, with strong cash generation from investing activities offsetting cash used in financing Cash Flow Summary - Nine Months Ended Sep 30 (in thousands) | Activity | 2020 | 2019 | | :--- | :--- | :--- | | Net cash provided by operating activities | $26,847 | $36,869 | | Net cash provided by investing activities | $210,240 | $119,983 | | Net cash used in financing activities | $(112,203) | $(140,322) | | **Net increase in cash and cash equivalents** | **$124,884** | **$16,530** | [Notes to Unaudited Consolidated Financial Statements](index=9&type=section&id=Notes%20to%20Unaudited%20Consolidated%20Financial%20Statements) Notes detail accounting policies and financial instruments, including CECL adoption, SBA PPP loans, and interest rate swaps for hedging - The company adopted ASU 2016-13 (CECL) on January 1, 2020, recording a net decrease to retained earnings of **$2,325,000** and increasing the allowance for credit losses on loans by **$2,888,000**[25](index=25&type=chunk)[26](index=26&type=chunk) - At September 30, 2020, the investment securities portfolio had unrealized losses of **$8.3 million**, primarily from **$110.8 million** in corporate bonds of six large U.S. financial institutions[39](index=39&type=chunk)[44](index=44&type=chunk) - As of October 26, 2020, **nearly all loans** that received COVID-19 related payment deferrals had resumed making payments[62](index=62&type=chunk) - The company uses two interest rate swaps with a total notional amount of **$200 million** to hedge cash flows on FHLB advances and brokered CDs[96](index=96&type=chunk)[98](index=98&type=chunk) [Management's Discussion and Analysis of Financial Condition and Results of Operations](index=22&type=section&id=ITEM%202.%20Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management discusses a 5.2% net income decrease to $30.7 million, primarily due to higher credit loss provisions and expenses, despite strong asset quality and capital levels - Net income for the first nine months of 2020 was **$30.7 million** (**$1.28 per share**), down from **$32.4 million** (**$1.29 per share**) in the same period of 2019[104](index=104&type=chunk) - The decrease in net income is attributed to a higher provision for credit losses (**$2.2 million** increase) and higher noninterest expense, partially offset by increased net interest income (**$1.4 million** increase)[105](index=105&type=chunk) - In September 2020, the bank executed a deleveraging strategy, selling **$64.5 million** in securities to prepay **$128.7 million** in long-term debt, resulting in a net neutral impact on earnings but expected to benefit future net interest margin[112](index=112&type=chunk)[133](index=133&type=chunk) [Net Interest Income](index=24&type=section&id=Net%20Interest%20Income_MD%26A) Net interest income increased by $1.1 million (1.4%) due to lower liability costs, improving net interest margin to 2.64%, but future pressure is expected Net Interest Margin and Spread (Tax-equivalent basis) | Metric | Nine Months Ended Sep 30, 2020 | Nine Months Ended Sep 30, 2019 | | :--- | :--- | :--- | | Net interest spread | 2.25% | 2.11% | | Net interest margin | 2.64% | 2.57% | - Future net interest income is expected to be negatively impacted by approximately **$500,000** quarterly from residential mortgage refinancings and **$700,000** in Q4 2020 from corporate bonds repricing to lower floating rates[117](index=117&type=chunk) [Asset Quality](index=28&type=section&id=Asset%20Quality_MD%26A) Asset quality remains strong despite an increase in nonperforming assets to $2.15 million, with most COVID-19 modified loans resuming payments Risk Elements (in thousands) | Category | Sep 30, 2020 | Dec 31, 2019 | | :--- | :--- | :--- | | Total nonaccrual loans | $2,154 | $888 | | Total nonperforming assets | $2,154 | $888 | | **Total risk elements** | **$3,483** | **$1,958** | | Nonperforming assets as a % of total loans | 0.07% | 0.03% | - As of October 26, 2020, **almost all loans** that received COVID-19 payment deferrals have resumed payments and are current[147](index=147&type=chunk) [Allowance and Provision for Credit Losses](index=28&type=section&id=Allowance%20and%20Provision%20for%20Credit%20Losses_MD%26A) ACL reached $32.8 million (1.08% of loans), with a $2.5 million provision for credit losses driven by CECL adoption and COVID-19 economic forecasts - The provision for credit losses for the first nine months of 2020 was **$2.5 million**, which included **$4.2 million** to reflect current and forecasted economic conditions due to the pandemic[149](index=149&type=chunk) - The ACL to total loans ratio was **1.08%** at September 30, 2020, up from **0.92%** at December 31, 2019 (on an incurred loss basis)[149](index=149&type=chunk) [Cash Flows and Liquidity](index=29&type=section&id=Cash%20Flows%20and%20Liquidity_MD%26A) The Corporation maintains a strong liquidity position with cash and equivalents increasing to $163.9 million and significant borrowing capacity - The Bank's borrowing capacity was approximately **$1.7 billion** at September 30, 2020, based on unencumbered securities and loan collateral[162](index=162&type=chunk) - Primary sources of cash in the first nine months of 2020 were **deposit growth, loan and security paydowns, and operations**[155](index=155&type=chunk)[156](index=156&type=chunk) [Capital](index=29&type=section&id=Capital_MD%26A) Stockholders' equity increased to $397.7 million, with the Corporation and Bank maintaining strong CBLR leverage ratios exceeding regulatory requirements - The Corporation and Bank elected to adopt the CBLR framework and maintained leverage ratios of **9.57%** and **9.58%**, respectively, exceeding the well-capitalized requirements[166](index=166&type=chunk)[167](index=167&type=chunk) - The company repurchased **261,700 shares** for **$5.9 million** in Q1 2020 and expects to resume its share repurchase program in Q4 2020[169](index=169&type=chunk) [Quantitative and Qualitative Disclosures About Market Risk](index=30&type=section&id=ITEM%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) The Bank's primary market risk is interest rate risk, with sensitivity analysis showing benefit from modest rate increases but negative impact from larger rate changes Interest Rate Sensitivity Analysis (as of Sep 30, 2020) | Rate Change Scenario | EVE % Change from Base | NII % Change from Base (1-Year) | | :--- | :--- | :--- | | +300 bps | -0.8% | -2.7% | | +200 bps | 1.5% | -1.1% | | +100 bps | 2.7% | 0.1% | | -100 bps | -17.9% | -1.3% | - The bank is **asset-sensitive** in modest rising rate scenarios but becomes **liability-sensitive** in larger rate shocks due to the assumed need to increase rates on non-maturity deposits while a large portion of assets remain at fixed rates[178](index=178&type=chunk) [Controls and Procedures](index=32&type=section&id=ITEM%204.%20Controls%20and%20Procedures) Disclosure controls and procedures were effective, with no material changes to internal control over financial reporting during the quarter - The Corporation's management concluded that disclosure controls and procedures are **effective** as of September 30, 2020[182](index=182&type=chunk) - **No material changes** to internal control over financial reporting occurred during the third quarter of 2020[183](index=183&type=chunk) PART II. [OTHER INFORMATION](index=32&type=section&id=PART%20II.%20OTHER%20INFORMATION) [Legal Proceedings](index=32&type=section&id=ITEM%201.%20Legal%20Proceedings) The Corporation is involved in ordinary course legal actions, with management believing any resulting liability will be immaterial - In the opinion of management, any liability from ongoing legal actions is believed to be **immaterial** to the Corporation's consolidated financial position[184](index=184&type=chunk) [Risk Factors](index=32&type=section&id=ITEM%201A.%20Risk%20Factors) No material changes to previously disclosed risk factors were reported for the quarter - **No material changes** to risk factors were reported for the quarter[185](index=185&type=chunk) [Unregistered Sales of Equity Securities and Use of Proceeds](index=32&type=section&id=ITEM%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) This item is not applicable for the reporting period - **Not applicable**[186](index=186&type=chunk) [Exhibits](index=32&type=section&id=ITEM%206.%20Exhibits) The report includes an index of exhibits, featuring officer certifications and iXBRL formatted financial statements - Exhibits filed with the report include **officer certifications (31.1, 31.2, 32)** and **iXBRL data files (101, 104)**[189](index=189&type=chunk)