8-K: ConnectOne Bancorp and First of Long Island Corporation Shareholders Approve Merger

Shareholders of both ConnectOne Bancorp and The First of Long Island Corporation have approved the proposed merger, paving the way for a combined entity with approximately $14 billion in assets.

Summary

• ConnectOne Bancorp and The First of Long Island Corporation (FLIC) held special meetings on February 14, 2025, where shareholders approved proposals related to the pending merger.
• ConnectOne shareholders approved the issuance of ConnectOne common stock to FLIC shareholders and a proposal to adjourn the meeting if necessary.
• FLIC shareholders also approved the merger agreement and certain executive compensation arrangements.
• The merger is expected to close in the second quarter of 2025, pending regulatory approval and other customary closing conditions.
• The combined company will operate under the ConnectOne brand and is projected to have approximately $14 billion in total assets, $11 billion in total deposits, and $11 billion in total loans.
• The merger will establish ConnectOne as one of the top 5 banks on Long Island in terms of deposit market share.

Sentiment

Score: 8

Explanation: The document conveys a positive sentiment due to the successful shareholder votes and the anticipated benefits of the merger. The management comments are optimistic, and the combined company is expected to have a strong market position.

Positives

• Shareholder approval removes a significant hurdle for the merger.
• The combined entity will have a substantial presence in the New York metro area, with approximately $14 billion in assets.
• The merger is expected to create a premier community bank with a strong market share on Long Island.
• Chris Becker, CEO of First of Long Island, will become Vice Chairman of ConnectOne, ensuring a smooth transition.

Negatives

• The merger is still subject to regulatory approval, which could potentially delay or prevent the closing.
• Integration risks associated with combining two different company cultures and systems exist.

Risks

• Failure to obtain necessary regulatory approvals could prevent the merger from closing.
• Adverse reactions or changes to business or employee relationships could negatively impact the combined company.
• Legal proceedings could be instituted against ConnectOne or FLIC, potentially delaying or complicating the merger.

Future Outlook

The merger is expected to close in the second quarter of 2025, subject to regulatory approval and other customary closing conditions. The combined company will operate under the ConnectOne brand and aims to be a premier New York-metro community bank.

Management Comments

• Frank Sorrentino III, Chairman and Chief Executive Officer of ConnectOne, stated that shareholders demonstrated strong support for the transaction and that integration teams are preparing for the combination.
• Chris Becker, CEO of First of Long Island, expressed excitement about combining with ConnectOne and the attractive opportunities it presents for clients, employees, and investors.

Industry Context

The merger reflects a trend of consolidation in the banking industry, particularly among community banks seeking to gain scale and improve efficiency. The combined entity will be better positioned to compete with larger regional and national banks in the New York metro area.

Comparison to Industry Standards

• The combined company's $14 billion in assets would place it among the larger community banks in the New York metro area.
• Other comparable mergers in the community banking sector include the acquisition of Empire Bancorp by New York Community Bancorp, which aimed to expand market share and improve operational efficiency.
• The top 5 bank position on Long Island in terms of deposit market share is a significant achievement, comparable to other regional banks that have established strong local presences through strategic acquisitions.

Management Changes

Stakeholder Impact

• Shareholders of both companies will benefit from the combined entity's increased scale and market presence.
• Employees may experience changes in roles and responsibilities as the two companies integrate.
• Customers will have access to a broader range of products and services.
• The merger could impact suppliers and creditors as the combined company streamlines its operations.

Next Steps

• Obtain regulatory approvals for the merger.
• Satisfy other customary closing conditions.
• Complete the integration of ConnectOne and First of Long Island.
• Transition Chris Becker to the role of Vice Chairman of ConnectOne.

Key Dates