Expanding Presence in New York for ConnectOne through $284M Agreement
In a significant move, ConnectOne Bancorp and The First of Long Island Corp. have announced the completion of their merger in an all-stock transaction valued at $284 million. The deal, which was first announced in early 2024, aims to create a premier middle-market bank focusing on the greater New York metro area.
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. This merger positions ConnectOne as one of the top 5 banks on Long Island, in terms of deposit market share.
First of Long Island shareholders will receive 0.5175 shares of ConnectOne common stock for each First of Long Island share they hold. The transaction is expected to close in mid-2025, subject to shareholder and regulatory approvals.
Two independent members of First of Long Island's board will join ConnectOne's board, and Chris Becker, CEO of The First National Bank of Long Island, will become vice chairman of ConnectOne's board upon the deal's completion.
ConnectOne has already built a customer base in Long Island since opening its first branch there in 2018. The First of Long Island, with 40 branches in the New York metro area, brings a strong presence in Nassau and Suffolk counties, with 92% of its deposits located there.
The merger is projected to boost ConnectOne's earnings per share by roughly 36% in 2025 on an adjusted basis. To further strengthen its financial position, ConnectOne plans to raise approximately $100 million in subordinated debt before the deal closes, the net proceeds of which will be passed on as equity capital to ConnectOne Bank.
U.S. bank merger and acquisition activity in 2024 has outpaced last year, with 38 deal announcements through Aug. 1, compared with 29 such during the first seven months of 2023. However, it's important to note that the total value of this year's deals is roughly $9.1 billion, much less than last year's $20.9 billion.
Despite an investigation initiated by investor rights law firm Halper Sadeh into the fairness of the merger, no information about purchasing licensing rights or any publicly reported investigation specifically regarding the fairness of ConnectOne Bancorp’s merger with The First of Long Island Corporation or shareholder concerns alleging possible violations of federal securities laws based on currently available information has been disclosed.
The available data emphasizes successful merger completion and the combined entity’s expanded financial metrics. While the second quarter 2025 results showed a net loss primarily due to merger expenses, no reports or filings indicate disputes or allegations regarding violations of federal securities laws by ConnectOne or related to the merger transaction.
For the most accurate and current status on potential regulatory or legal investigations, monitoring SEC filings, formal shareholder communications, and news from credible financial regulatory sources would be necessary.
[1] ConnectOne Bancorp Press Release, "ConnectOne Bancorp and The First of Long Island Corp. Announce Merger Agreement", link [2] The First of Long Island Corp. Press Release, "The First of Long Island Corp. and ConnectOne Bancorp Announce Merger Agreement", link [3] ConnectOne Bancorp Form 8-K, "Report of Foreign Private Issuer", link [4] The First of Long Island Corp. Form 8-K, "Report of Foreign Private Issuer", link [5] ConnectOne Bancorp Q2 2025 Earnings Release, link
The merger of ConnectOne Bancorp and The First of Long Island Corp will significantly impact the fintech industry and business sector, as it positions ConnectOne as one of the top banks on Long Island, with a focus on the greater New York metro area. The combined entity, operating primarily in finance, will have a stronger presence in the Nassau and Suffolk counties, boosting its earnings per share by approximately 36% in 2025.
