ConnectOne Bancorp, First of Long Island enter $284M merger agreement

ConnectOne Bancorp (CNOB) and The First of Long Island Corporation (FLIC) have entered into a definitive agreement pursuant to which First of Long Island will merge with and into ConnectOne. The combined company will operate under the ConnectOne brand, and will have approximately $14 billion in total assets, $11 billion in total deposits, and $11 billion in total loans. Under the terms of the agreement, First of Long Island shareholders will receive 0.5175 shares of ConnectOne common stock for each share of First of Long Island common stock. The transaction is presently valued at approximately $284 million in the aggregate, or approximately $12.40 per First of Long Island share, based upon the closing common stock price of $23.97 for ConnectOne Bancorp as of September 4, 2024. First of Long Island is headquartered in Melville, NY, and operates 40 branches in the New York Metropolitan area, with approximately 92% of its deposits located in Nassau or Suffolk Counties. As of June 30, 2024, First of Long Island had approximately $4.2 billion of assets, $3.3 billion of loans, and $3.4 billion of deposits. Based on S&P Capital IQ Pro data as of June 30, 2023, First of Long Island is ranked #4 in Nassau County and #5 in Suffolk County in deposit market share among banks under $100 billion of assets. The merger is expected to be approximately 36% accretive to ConnectOne’s earnings per share in 2025 as adjusted for an illustrative full phase-in of cost savings. Tangible book value per share dilution is projected at 12%, with an earnback period of approximately 2.9 years. ConnectOne projects to deliver a return on average tangible common equity of approximately 14% and an efficiency ratio of approximately 45% in 2025, adjusted for an illustrative full phase-in of cost savings. As part of the transaction, ConnectOne plans to raise approximately $100 million in subordinated debt prior to the transaction closing, the net proceeds of which will be downstreamed in the form of equity capital to ConnectOne Bank. Effective at the closing of the transaction, Mr. Becker will become Vice Chairman of ConnectOne and two current independent members of First of Long Island’s board will join the Board of Directors of ConnectOne. The transaction has been unanimously approved by the Board of Directors of both companies and is expected to be completed in mid-2025, subject to approval by shareholders of both First of Long Island and ConnectOne, as well as regulatory approvals and other customary closing conditions.