Expanding horizons in New York for ConnectOne with a $284 million agreement
ConnectOne Bancorp and The First National Bank of Long Island to Merge in $284 Million All-Stock Deal
In a move that aims to create a premier middle-market bank focusing on the greater New York metro area, ConnectOne Bancorp and The First National Bank of Long Island Corp have announced a merger in an all-stock transaction valued at $284 million. The deal, which is expected to close in mid-2025, subject to shareholder and regulatory approvals, will result in a company with a market capitalization exceeding $1.2 billion.
Upon the deal's completion, Chris Becker, CEO of The First National Bank of Long Island, will become vice chairman of ConnectOne's board. Two independent members of First of Long Island's board will also join ConnectOne's board after the merger. The combined company, operating under the ConnectOne brand, will have approximately $14 billion in total assets, $11 billion in total deposits, and $11 billion in total loans.
Approximately 30% of the combined company's deposit franchise will be in Nassau and Suffolk counties, reflecting the significant presence of both banks in these regions. The First National Bank of Long Island, with 40 branches in the New York metro area, has nearly 92% of its deposits in Nassau or Suffolk counties.
The transaction values each First of Long Island share at roughly $12.40. First of Long Island shareholders will receive 0.5175 shares of ConnectOne common stock for each First of Long Island share they hold.
ConnectOne has already built a customer base in Long Island since opening its first branch there in 2018. The merger is expected to further strengthen ConnectOne's presence in the New York City market and accelerate its Long Island growth strategy. ConnectOne's CEO, Frank Sorrentino III, expressed confidence in the merger's long-term potential and seamless integration.
However, recent developments have raised questions about the fairness of the deal to ConnectOne shareholders. Investor rights law firm Halper Sadeh has initiated an investigation into whether the merger is fair to shareholders. The law firm has raised concerns that ConnectOne and its board may have violated federal securities laws or breached their fiduciary duties.
It is important to note that no references were found to shareholder lawsuits, regulatory investigations, or claims of breaches of fiduciary duty or securities law violations relating to the merger in the available sources. For a comprehensive investigation into any shareholder concerns or possible regulatory reviews, reviewing SEC filings such as proxy statements, 8-Ks related to the merger, or securities litigation databases would be necessary.
The deal also includes a termination fee of around $11.8 million if the deal falls through.
The merger between ConnectOne Bancorp and The First of Long Island Corp is part of a larger trend in U.S. bank merger and acquisition activity. U.S. bank merger and acquisition activity in 2024 has outpaced that of 2023, with 38 deal announcements compared to 29 during the first seven months of 2023. However, the total value of this year's deals is roughly $9.1 billion, much less than last year's $20.9 billion.
References: [1] ConnectOne Bancorp Q2 2025 Earnings Release [2] The First National Bank of Long Island Q2 2025 Earnings Release [4] ConnectOne Bancorp and The First National Bank of Long Island Merger Announcement
The all-stock transaction between ConnectOne Bancorp and The First National Bank of Long Island, valued at $284 million, underscores their interest in the finance sector and business consolidation. Following the merger's completion, the combined entity will focus on the greater New York metro area and have a market capitalization exceeding $1.2 billion.
