First National Bank of Long Island, once known as “the bank where everybody knows
your name,” is getting a new name as it merges with ConnectOne Bank, a community
bank serving the New York metro market.
The $284 million transaction will merge First National into ConnectOne Bank creating a
bank with over $14 billion in assets, as well as $11 billion in deposits and $11 billion in
loans.
ConnectOne will go from a small presence to a big player on Long Island, where
it already has a banking hub (business and consumer branch) in Melville and a loan
production office in East Hampton.
Once combined, both banks will operate under the ConnectOne brand. The combined entity will provide clients with more access through more locations, talent and a more robust product set.
“ConnectOne Bank was founded by local business leaders to support the communities it
serves. Long Island is home to a thriving business community that values the
relationship banking model ConnectOne has built, so our expansion in this market is a
natural progression,” ConnectOne CEO Frank Sorrentino III told the Long Island Press.
“We are thrilled to partner with First National Bank of Long Island who shares our client-
centric culture, which is clearly demonstrated in its longstanding history on the island.
We look forward to shaping the next chapter of relationship banking on Long Island with
the First of Long Island team.”
By adding over $3 billion in deposits, ConnectOne says it will become one of the top five
banks on Long Island in terms of deposit market share.
The deal, ratified by both boards on Sept. 4, is expected to close in mid-2025, subject to
shareholder and regulatory approval. First Long Island shareholders will receive 0.5175
shares of ConnectOne stock for each First of Long Island share.
Melville-based First of Long Island, founded in Glen Head in 1923, operates 40
branches in the New York metropolitan area and has about $4.2 billion in assets and
$3.3 billion in loans. As its name indicates, it is primarily a Long Island bank with about
92% of its $3.4 billion in deposits in Nassau or Suffolk counties.
Sorrentino, in a written statement, added that “this transaction is a natural fit,” because
both “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.”
He called this “a compelling transaction which enhances our franchise value, solidifies
ConnectOne’s presence in the New York City market and accelerates our Long Island
growth strategy.”
He also said it would create a bigger bank that combines complementary abilities and
specialties to better serve its customers.
“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,” Sorrentino said.
First of Long Island CEO Christopher Becker will serve as vice chair of ConnectOne
Bancorp. ConnectOne will nominate Becker for election by the shareholders for three
annual terms, subject to certain exceptions. Additionally, ConnectOne will name two
other First of Long Island board members to its board.
First National, whose slogan now is “Go First. Go Far,” trades on the NASDAQ as FLIC.
“This partnership is the coming together of two market-adjacent companies that will be
positioned for greater success,” Becker said.
He earlier talked about the importance of connecting, which, in retrospect, may have
foreshadowed this merger between these two publicly traded companies.
“The emphasis on ‘Let’s connect’ recognizes that our most significant strength as a
company is our people, who consistently go to extraordinary lengths to deliver service
that is a cut above,” Becker said earlier.
ConnectOne opened its first Long Island branch in 2018 and already has a high level of
familiarity with the local market. The company plans to issue about $100 million in debt
prior to the transaction closing.
“ConnectOne is an experienced acquiror and integrator, and has performed extensive
due diligence,” the company said in a written statement.
The company also has a banking hub in Florida, which it says it opened initially to serve
existing clients with homes and business there.
“ConnectOne’s expansion into West Palm Beach was an effort to support our clients,”
Sorrentino told the Press. “During the pandemic we saw a growing shift among our
clients and our expansion is a part of our continued commitment to support our clients’
growth.”
The merger is expected to be approximately accretive to ConnectOne’s earnings per
share in 2025.
This is just ConnectOne’s latest acquisition, following takeovers such as the 2020
acquisition of Bank of New Jersey and the 2019 acquisition of Greater Hudson Bank.
And acquisitions, in general, are going strong in the banking sector where this follows a
medley of mergers nationwide.
Keefe, Bruyette & Woods served as financial advisor to ConnectOne and Windels Marx
Lane & Mittendorf served as its legal counsel. Piper Sandler & Co. served as financial advisor to First of Long Island and Luse Gorman served as its legal counsel.