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 revealed an important development: a merger with The First of Long Island Corporation. This strategic alliance is designed to bolster ConnectOne's presence in the New York metropolitan area. The newly formed entity is anticipated to have around $14 billion in total assets and approximately $11 billion in deposits and loans.
Merger Details and Financial Implications
As part of the merger, shareholders of First of Long Island will receive 0.5175 shares of ConnectOne common stock for each share they own. This brings the total value of the transaction to about $284 million, equating to roughly $12.40 per share of First of Long Island, based on ConnectOne's recent closing price.
Growing Market Presence
First of Long Island operates 40 branches throughout the New York Metropolitan area, establishing a solid market position. With 92% of its deposits concentrated in Nassau and Suffolk Counties, this merger will significantly enhance ConnectOne’s capabilities and market share, placing it among the top five banks in terms of deposit market share on Long Island.
A Unified Commitment to Clients
Frank Sorrentino III, CEO of ConnectOne, expressed his enthusiasm about the merger, noting that it aligns with a company that shares similar values and a focus on client service. He underscored the strategic importance of this merger, highlighting the substantial growth opportunities it will create for ConnectOne.
Benefits of the Merger for Clients and Stakeholders
This partnership not only strengthens ConnectOne’s market position but also enhances the services available to clients. The merger is expected to positively impact earnings, with an anticipated increase of around 36% in earnings per share by 2025. The synergy from merging these two banking institutions will provide a better platform for addressing the diverse financial needs of clients.
Strategic Highlights of the Transaction
- Establishment of a leading middle-market bank focused on the New York metro area.
- The new organization will have a market capitalization exceeding $1.2 billion.
- ConnectOne will surpass the $10 billion asset threshold following the merger.
- 30% of deposits will originate from Nassau and Suffolk Counties, significantly boosting ConnectOne's local footprint.
- The merger is structured to minimize risks, drawing on ConnectOne's successful history with acquisitions.
Next Steps and Regulatory Approvals
The merger has received unanimous approval from the Boards of Directors of both companies and is expected to be completed by mid-2025, contingent upon shareholder approvals and regulatory endorsements. To strengthen its capital structure ahead of the merger, ConnectOne plans to raise approximately $100 million in subordinated debt.
About ConnectOne Bancorp, Inc.
ConnectOne Bancorp, Inc. is recognized as a modern financial services company operating through its subsidiary, ConnectOne Bank, and its fintech division, BoeFly, Inc. The company focuses on serving small to middle-market businesses by offering a comprehensive range of banking and lending products. Listed on Nasdaq under the symbol “CNOB,” ConnectOne is dedicated to empowering its clients financially.
About First of Long Island Corporation
Founded in 1927, The First of Long Island Corporation oversees The First National Bank of Long Island, catering to both business and personal banking requirements. Their commitment to client satisfaction remains a fundamental principle 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.
