8-K: ConnectOne Bancorp and The First of Long Island Corporation Receive FDIC Approval for Merger

ConnectOne Bancorp and The First of Long Island Corporation have received FDIC approval to proceed with their previously announced merger, with an expected closing date around June 1, 2025.

Summary

• ConnectOne Bancorp and The First of Long Island Corporation have received approval from the Federal Deposit Insurance Corporation (FDIC) to move forward with their merger.
• The merger is expected to close on or about June 1, 2025, pending further approvals from the New Jersey Department of Banking and Insurance and the Federal Reserve Bank of New York.
• Upon completion, the combined company will operate under the ConnectOne brand.
• The combined entity will 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 community banks on Long Island based on deposit market share.

Sentiment

Score: 8

Explanation: The document conveys a positive sentiment due to the successful receipt of FDIC approval, the anticipation of a smooth merger, and the expected benefits of the combined entity. Management expresses enthusiasm and readiness for the integration.

Positives

• The merger has received FDIC approval, a significant step towards completion.
• The combined company will have a substantial asset base of approximately $14 billion.
• The merger is expected to create a stronger competitive position for ConnectOne in the Long Island market.
• Management teams from both companies express enthusiasm and readiness for a seamless integration.

Risks

• The merger is still subject to approvals or waivers from the New Jersey Department of Banking and Insurance and the Federal Reserve Bank of New York.
• Failure to obtain these remaining regulatory approvals could delay or prevent the merger.
• Potential adverse reactions or changes to business or employee relationships could arise from the announcement or completion of the transaction.
• Legal proceedings could be instituted against ConnectOne or FLIC.

Future Outlook

The merger is expected to close around June 1, 2025, pending remaining regulatory approvals, and the combined company will operate under the ConnectOne brand, aiming to leverage ConnectOne's commercial expertise and modern infrastructure to serve First of Long Island's client base.

Management Comments

• Frank Sorrentino III, Chairman and Chief Executive Officer of ConnectOne, stated that they are pleased to have received FDIC approval and are well-positioned to serve First of Long Island's client base.
• Chris Becker, CEO of The First National Bank of Long Island, expressed excitement about the merger and readiness for a seamless integration, emphasizing the shared value of client service.

Industry Context

This merger reflects a trend of consolidation in the banking industry, particularly among community banks, to achieve greater scale, efficiency, and competitiveness. It allows ConnectOne to expand its presence on Long Island and leverage its technology platform.

Comparison to Industry Standards

• The combined entity's $14 billion in assets would place it among the larger community banks, but still significantly smaller than regional or national players like M&T Bank or JPMorgan Chase.
• The focus on commercial expertise and fintech integration aligns with industry trends towards specialized services and digital banking solutions.
• The top 5 deposit market share goal on Long Island is a specific, measurable objective that can be compared to competitors like People's United Bank and New York Community Bancorp.

Stakeholder Impact

• Shareholders of both companies can expect to benefit from the synergies and increased scale of the combined entity.
• Employees can anticipate a smooth transition and potential new opportunities within the larger organization.
• Customers will experience a broader range of products and services under the ConnectOne brand.
• The merger could impact suppliers and creditors through changes in procurement and financing strategies.

Next Steps

• Obtain approvals or waivers from the New Jersey Department of Banking and Insurance.
• Obtain approvals or waivers from the Federal Reserve Bank of New York.
• Close the transaction, expected on or about June 1, 2025.
• Integrate the two companies under the ConnectOne brand.

Key Dates

Keywords

merger, ConnectOne Bancorp, The First of Long Island Corporation, FDIC approval, banking, community banks