ConnectOne Bancorp to buy First of Long Island in $284 million deal

(Reuters) – ConnectOne Bancorp (NASDAQ:CNOB) has agreed to buy smaller peer First of Long Island in an all-stock deal valued at $284 million, the companies said on Thursday.

The deal will create a combined bank with about $14 billion in total assets and bolster ConnectOne’s presence in New York City.

First of Long Island shareholders will receive 0.5175 shares of ConnectOne for each held, valuing the lender at $12.40 per share, based on ConnectOne’s last close.

The offer represents a 0.8% discount to First of Long Island’s last close.

“We are excited to bring together two highly complementary, commercially focused banks to create a truly premier New York-metro community bank,” said ConnectOne CEO Frank Sorrentino III.

Sorrentino said the deal would also accelerate the bank’s Long Island growth strategy. ConnectOne opened its first Long Island branch in 2018.

The deal underscores the growing consolidation trend within the regional banking sector as lenders seek strategic partnerships to scale operations and gain a competitive edge.

As part of the deal, First of Long Island CEO Chris Becker will become vice chairman of ConnectOne.

The deal is expected to close in mid-2025, with projections to boost ConnectOne’s earnings per share by 36% in 2025 on an adjusted basis.

First of Long Island, which has $4.2 billion in total assets, is liable to pay a $11.8 million termination fee if the deal fails to go through due to a competing acquisition offer.

Keefe, Bruyette & Woods and Piper Sandler were the financial advisers to ConnectOne and the First of Long Island, respectively.