8-K: ConnectOne and First of Long Island Merger Receives FDIC Approval, Closing Expected Soon

ConnectOne Bancorp and The First of Long Island Corporation have received FDIC approval for their merger, with closing anticipated around June 1, 2025, pending further regulatory approvals.

Summary

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

Sentiment

Score: 8

Explanation: The document conveys a positive sentiment due to the successful receipt of FDIC approval and the anticipation of a smooth merger, which is expected to create a stronger, more competitive banking entity.

Positives

• The merger received FDIC approval, a significant step towards completion.
• The combined company will have a substantial presence on Long Island with significant assets, deposits, and loans.
• ConnectOne will become a top 5 community bank on Long Island, increasing its market influence.
• Management anticipates a seamless integration and enhanced client service.

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.
• Legal proceedings could be instituted against ConnectOne or FLIC.
• Adverse reactions or changes to business or employee relationships could result from the announcement or completion of the transaction.

Future Outlook

The merger is expected to close around June 1, 2025, pending final regulatory approvals, and the combined company will operate under the ConnectOne brand, becoming a top 5 community bank on Long Island.

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 by leveraging ConnectOne's commercial expertise and modern infrastructure.
• Chris Becker, CEO of The First National Bank of Long Island, expressed excitement about moving ahead with the merger and partnering with an organization that values client service, looking forward to ensuring a smooth transition for clients.

Industry Context

The merger reflects a trend of consolidation in the banking industry, particularly among community banks seeking to gain scale, improve efficiency, and enhance their competitive position. This move allows ConnectOne to significantly increase its presence on Long Island.

Comparison to Industry Standards

• The combined entity's projected $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 banking and small to middle-market businesses aligns with the strategies of other successful community banks such as New York Community Bancorp.
• The emphasis on client service and local market knowledge is a common trait among high-performing community banks.

Stakeholder Impact

• Shareholders of both companies will be impacted by the merger, with potential changes in stock value and ownership.
• Employees of both banks will experience integration and potential changes in roles and responsibilities.
• Customers of both banks will be transitioned to the ConnectOne brand and may experience changes in services and products.
• The merger could impact the competitive landscape for other banks on Long Island.

Next Steps

• Obtain approvals or waivers from the New Jersey Department of Banking and Insurance and the Federal Reserve Bank of New York.
• Complete the merger transaction, expected on or about June 1, 2025.
• Integrate the two companies under the ConnectOne brand.
• Focus on serving clients and unlocking new opportunities for stakeholders.

Key Dates

Keywords

merger, ConnectOne Bancorp, First of Long Island Corporation, FDIC approval, banking, regulatory approval, community bank