Listen to this articleConnectOne Bankcorp, headquartered in Englewood Cliffs, New Jersey, is to expand on Long Island with a $284 million acquisition of The First of Long Island Corporation, the Melville-based parent company of The First National Bank of Long Island.
The combined company will operate under the ConnectOne brand, and will have approximately $14 billion in total assets, and $11 billion each in total deposits and in total loans.
First of Long Island has 40 branches in the New York metropolitan region, with approximately 92% of its deposits located in Nassau and Suffolk counties. As of June 30, 2024, the bank had approximately $4.2 billion of assets, $3.3 billion of loans and $3.4 billion of deposits. According to S&P data, First of Long Island ranked fourth in Nassau County and fifth in Suffolk County in deposit market share among banks with under $100 billion of assets.
“We are excited to bring together two highly complementary, commercially focused banks to create a truly premier New York-metro community bank,” Frank Sorrentino III, chairman and CEO of ConnectOne Bank, said in a news release about the acquisition.
“This transaction is a natural fit as both ConnectOne and First of Long Island share a strong credit culture, a long-term track record of strong financial performance, and a deep commitment to putting clients at the center of our businesses,” Sorrentino said.
With this transaction, which is expected to be completed in mid-2025, the bank will focus on the New York metropolitan area.
“Financially, the all-stock transaction will be accretive to earnings and offers positive pro forma benefits while maintaining a rigorous risk management culture and a strong capital and liquidity position,” Sorrentino said. “By combining our talents and resources we’re creating a significantly enhanced platform for continued growth while offering our clients an expanded range of services and enhanced capabilities.”
The deal was unanimously approved by the board of directors of both companies.
“Joining forces with ConnectOne begins the next chapter in The First National Bank of Long Island’s story,” Chris Becker, CEO of The First National Bank of Long Island, said in the news release.
“Together, we leverage the strengths, expertise, and resources of both companies to offer our clients the muscle and support of a $14 billion institution with a people-first culture backed by modern infrastructure,” Becker said. “This partnership is the coming together of two market-adjacent companies that will be positioned for greater success.
Upon the closing of the transaction, Becker would support the combined company as the board’s vice chairman. In addition, two current independent members of First of Long Island’s board will join the board of directors of ConnectOne.
The merger is expected to be approximately 36% accretive to ConnectOne’s earnings per share in 2025. Tangible book value per share dilution is projected at 12%, with an earn-back period in under three years.
With a focus on small to middle-market businesses, ConnectOne opened its first Long Island branch in 2018.
