In a deal that created one of the biggest community banks on Long Island, ConnectOne has merged with First of Long Island, resulting in a financial institution with a wide regional reach from branches to assets.
Englewood, NJ.-based ConnectOne Bancorp, Inc., parent company of ConnectOne Bank, completed its merger with Melville-based The First of Long Island Corp., parent company of The First National Bank of Long Island.
The combined company, operating under the ConnectOne brand, has about $14 billion in assets, $11 billion in deposits and $11 billion in loans.
ConnectOne, after the combination, includes more than 60 branches in New York, New Jersey, and Southeast Florida, where the company said “clients can benefit from personalized service, expanded expertise, and customizable product offerings.”
The transaction makes ConnectOne one of the five biggest community banks on Long Island in terms of deposit market share, according to the company. The bank said it has become No. 4 in Nassau and No. 5 in Suffolk.
First of Long Island shareholders received 0.5175 shares of ConnectOne stock for each share of First of Long Island and cash for fractional shares.
“The expansion is all about unlocking more for our clients, more access, more resources, and more opportunity,” ConnectOne CEO and Chairman Frank Sorrentino III said. “We’re excited to support their evolving needs through a powerful banking network across the New York and New Jersey metro market, along with Florida, all backed by dedicated bankers and superior service.”
Sorrentino called the merger a “complementary, financially savvy transaction, expanding the ConnectOne mission” that he said will bring both size and services to benefit current and prospective clients.
He added that “greater scale, enhanced capabilities, and a shared client-first culture” would “accelerate growth and strengthen franchise value” while providing “the robust Long Island community an even wider range of services.”
ConnectOne’s board of directors expanded to 15 members, including Christopher Becker, former president and CEO of The First National Bank of Long Island and The First of Long Island Corp., who was named vice chairman of ConnectOne.
ConnectOne had earlier obtained approvals from the Federal Deposit Insurance Corp. for the merger with First of Long Island, which is nearly one century old.
Sorrentino said that his company is well-positioned to serve First National Bank of Long Island’s clients by leveraging its “commercial expertise and modern infrastructure.”
The deal adds deposits in what ConnectOne earlier had called “demographically attractive markets.” First of Long Island’s Melville headquarters becomes ConnectOne’s Long Island regional headquarters.
First National Bank of Long Island CEO Chris Becker, who will become ConnectOne’s Vice Chairman of the Board, earlier said the two bank teams were ready to “execute a seamless integration.”
“We have teamed up with First of Long Island, proactively getting in front of its clients, anticipating and addressing their preferences and reinforcing a seamless transition,” Sorrentino said earlier in an earnings call.
ConnectOne Chief Financial Officer William Burns said on an investor call that they were “already making headway with regard to client engagement, staff integration, efficiency, and revenue enhancement.”
ConnectOne described other benefits of the deal, including 30% of deposits in non-interest-bearing accounts and pristine asset quality with minimal charge-offs.
First of Long Island, founded in 1927, has grown to $4.2 billion in assets, $3.3 billion in loans, and $3.4 billion in deposits. It focuses on small and mid-sized businesses, nonprofits, professionals, consumers, and municipalities on Long Island and in New York City.
This is the latest move by a New Jersey-based bank to grow on Long Island, seen as a promising region. Cherry Hill, N.J.-based Commerce Bank expanded on Long Island by opening branches before it was acquired by TD Bank.
Keefe, Bruyette & Woods served as financial advisor to ConnectOne, and Windels Marx Lane & Mittendorf served as legal counsel. Piper Sandler & Co. served as financial advisor to First of Long Island, and Luse Gorman served as legal counsel.
