ConnectOne Bank completed its purchase of The First National Bank of Long Island of Melville, N.Y., Monday, increasing the Englewood Cliffs-based bank’s presence on Long Island.
The transaction of the 40-branch bank was valued at $284 million when the deal was announced last year. With the completion of the transaction, the combined company is operating under the ConnectOne brand, with about $14 billion in total assets, $11 billion in total deposits and $11 billion in total loans.
When the Federal Deposit Insurance Corp. gave the go-ahead for the bank tie-up in early May, both parties said the deal would establish ConnectOne as one of the top five community banks on Long Island, in terms of deposit market share.
The transaction was announced by ConnectOne Bancorp Inc. and The First Long Island Corp., the parent companies of the two banks, last September. The boards of both banks previously, and unanimously, approved the deal, which bolsters ConnectOne’s profile as a strong middle-market bank focused on the greater New York metropolitan area.
ConnectOne has a network of more than 60 branches in New York, New Jersey, and Southeast Florida.
The First National Bank of Long Island, founded in 1927, served Nassau and Suffolk counties, which have a combined population of 2.9 million, according to Census Reporter. The median age is 42.3 years, about 10% higher than the U.S. figure of 39.2. Median household income is $132,080, more than 1.5 times that of the U.S.
“We are pleased to conclude this complementary, financially savvy transaction, expanding the ConnectOne mission,” said Frank Sorrentino, ConnectOne’s chairman and chief executive officer. “With greater scale, enhanced capabilities and a shared client-first culture, we are poised to accelerate growth and strengthen franchise value. I look forward to serving our growing client base and providing the robust Long Island community an even wider range of services.”
In accordance with the terms of the agreement and plan of transaction, First of Long Island shareholders received 0.5175 shares of ConnectOne common stock for each share of FLIC common stock owned. FLIC shareholders also received cash in lieu of any fractional shares they would have otherwise received in the deal.
Following the closing, and pursuant to the terms of the agreement, ConnectOne’s board of directors has been expanded to 15 members. Christopher Becker, former president and CEO of The First National Bank of Long Island and The First of Long Island Corporation, has been appointed vice chairman of ConnectOne. Joining him on the board are Peter Quick and Ed Haye, both of whom served as independent directors on the First of Long Island board.
Keefe, Bruyette & Woods Inc. and Stifel served as financial advisor to ConnectOne. Windels Marx Lane & Keefe, Bruyette & Woods Inc. and Stifel served as financial advisor to ConnectOne.
Shares of ConnectOne declined 41 cents, or 1.79%, to $22.56, in morning trading on Nasdaq Global Select Market Composite, and shares of First of Long Island rose 3 cents, or 0.25%, to $11.87, on the Nasdaq Capital Markets.
