ConnectOne Bancorp's Strategic Expansion via Merger Announcement
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ConnectOne Bancorp, Inc. Announces Major Merger with First of Long Island
ENGLEWOOD CLIFFS, N.J. — ConnectOne Bancorp, Inc. (NASDAQ: CNOB), the parent company of ConnectOne Bank, has announced a significant development with the merger of The First of Long Island Corporation. This strategic partnership aims to strengthen ConnectOne's footprint in the New York metropolitan area. The combined entity is projected to boast approximately $14 billion in total assets and around $11 billion in both deposits and loans.
Merger Details and Financial Implications
The merger will see shareholders of First of Long Island receive 0.5175 shares of ConnectOne common stock for every share they hold. This brings the transaction's total value to around $284 million, which translates to about $12.40 per First of Long Island share, based on the recent closing price of ConnectOne.
Growing Market Presence
First of Long Island operates 40 branches in the New York Metropolitan area and has garnered a strong market position. With 92% of its deposits located in Nassau and Suffolk Counties, this merger will enhance ConnectOne’s capabilities and market share, positioning it among the top five banks in deposit market share on Long Island.
A Unified Commitment to Clients
ConnectOne's CEO, Frank Sorrentino III, expressed genuine excitement about merging with a company that shares similar values and a client-centric approach. He highlighted the strategic nature of the merger, emphasizing the substantial growth it will spur in ConnectOne's operations.
Benefits of the Merger for Clients and Stakeholders
This partnership not only amplifies ConnectOne’s market presence but also offers enhanced services to clients. The merger is expected to be accretive to earnings, with a forecast of approximately 36% enhancement in earnings per share by 2025. The practical synergy generated from combining the two banking entities promises an improved platform for serving clients with diverse financial needs.
Strategic Highlights of the Transaction
- Creation of a leading middle-market bank focused on the New York metro area.
- The newly formed company will have a market capitalization exceeding $1.2 billion.
- ConnectOne will surpass the $10 billion asset mark following the merger.
- 30% of deposits will come from Nassau and Suffolk Counties, significantly enhancing ConnectOne's local presence.
- The merger has been structured with minimal risks, considering ConnectOne's established track record in acquisitions.
Next Steps and Regulatory Approvals
The merger has received the unanimous green light from both companies' Board of Directors and is expected to conclude in mid-2025, pending shareholder approvals and regulatory endorsements. ConnectOne plans to raise around $100 million in subordinated debt to enhance its capital structure ahead of the closing.
About ConnectOne Bancorp, Inc.
ConnectOne Bancorp, Inc. is recognized as a modern financial services enterprise operating through its subsidiary ConnectOne Bank and its fintech arm, BoeFly, Inc. They prioritize small to middle-market businesses, delivering an extensive range of banking and lending products. Listed on the Nasdaq under the symbol “CNOB,” ConnectOne strives to empower its clients financially.
About First of Long Island Corporation
Founded in 1927, The First of Long Island Corporation manages The First National Bank of Long Island, serving both business and personal banking needs. Their commitment to client satisfaction remains a core tenet of their operations.
Frequently Asked Questions
What is the purpose of the merger between ConnectOne Bancorp and First of Long Island?
The merger aims to enhance market presence and service offerings, establishing a stronger financial institution in the New York metro area.
How will the merger impact shareholders of both companies?
Shareholders of First of Long Island will receive ConnectOne common stock in exchange for their shares, which will create additional value as the combined company's market capitalization rises.
When is the expected completion date for the merger?
The merger is projected to be finalized in mid-2025, pending necessary regulatory approvals and shareholder votes.
What benefits will the merger bring to clients?
Clients can expect an expanded range of financial services and enhanced capabilities from the combined institution, aiming for higher efficiency and better service.
Who can interested stakeholders contact for more information?
Investors can reach out to ConnectOne's investor contact, William S. Burns, or First of Long Island's Janet T. Verneuille for detailed inquiries.
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