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

Shareholders of ConnectOne Bancorp and The First of Long Island Corporation have approved the proposed merger, paving the way for the creation of a premier New York-metro community bank.

Summary

• ConnectOne Bancorp and The First of Long Island Corporation announced that shareholders of both companies approved the proposed merger at separate special meetings.
• 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.
• 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 banks on Long Island in terms of deposit market share.
• Chris Becker, CEO of First of Long Island, will become Vice Chairman of ConnectOne after the transaction closes.

Sentiment

Score: 8

Explanation: The document conveys a positive sentiment due to the successful shareholder approval of the merger, the anticipated benefits of the combined entity, and the optimistic statements from management.

Positives

• Shareholder approval removes a key hurdle for the merger.
• The combined entity will have a substantial presence in the New York-metro area.
• The merger is expected to create a premier community bank.
• The combined company will benefit from the expertise of both ConnectOne and First of Long Island leadership.

Risks

• The merger is subject to regulatory approval, which may not be granted or may include conditions that adversely affect the combined company.
• Failure to satisfy other closing conditions could prevent the merger from being completed.
• Legal proceedings could arise that delay or prevent the merger.
• Adverse reactions or changes to business or employee relationships could occur as a result of the announcement or completion of the transaction.

Future Outlook

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

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 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. This move allows ConnectOne to significantly expand its presence in the competitive Long Island market.

Comparison to Industry Standards

• The combined entity's $14 billion in assets would place it among the larger community banks in the New York metropolitan area.
• Comparing this to other recent bank mergers, the deal aligns with the industry's focus on strategic combinations to enhance market share and operational synergies.
• For example, similar sized banks such as New York Community Bancorp have grown through acquisitions to achieve greater scale and market presence.

Management Changes

Stakeholder Impact

• Shareholders of both companies have approved the merger, indicating their support for the transaction.
• Clients of both banks are expected to benefit from the combined entity's expanded product and service offerings.
• Employees of both banks may experience changes as a result of the integration, but management has expressed a commitment to bringing together the two cultures.
• Investors are expected to benefit from the combined entity's increased scale and market presence.

Next Steps

• Obtain regulatory approval for the merger.
• Satisfy other customary closing conditions.
• Complete the integration of the two companies.
• Chris Becker to transition to Vice Chairman of ConnectOne.

Key Dates