ConnectOne Bancorp (NASDAQ: CNOB) has agreed to buy smaller peer First of Long Island (NASDAQ: FLIC) in an all-stock deal valued at $284 million, the companies said on Thursday.
The deal will create a combined bank with about $14 billion in total assets and bolster ConnectOne’s presence in New York City.
First of Long Island shareholders will receive 0.5175 shares of ConnectOne for each held, valuing the lender at $12.40 per share, based on ConnectOne’s last close.
The offer represents a 0.8% discount to First of Long Island’s last close.
“We are excited to bring together two highly complementary, commercially focused banks to create a truly premier New York-metro community bank,” said ConnectOne CEO Frank Sorrentino III.
Sorrentino said the deal would also accelerate the bank’s Long Island growth strategy. ConnectOne (NASDAQ: CNOB) opened its first Long Island branch in 2018.
The deal underscores the growing consolidation trend within the regional banking sector as lenders seek strategic partnerships to scale operations and gain a competitive edge.
As part of the deal, First of Long Island (NASDAQ: FLIC) CEO Chris Becker will become vice chairman of ConnectOne.
The deal is expected to close in mid-2025, with projections to boost ConnectOne’s earnings per share by 36% in 2025 on an adjusted basis.
First of Long Island, which has $4.2 billion in total assets, is liable to pay a $11.8 million termination fee if the deal fails to go through due to a competing acquisition offer.
Keefe, Bruyette & Woods, and Piper Sandler were the financial advisers to ConnectOne and the First of Long Island, respectively.
(Source: Reuters)
