ConnectOne Bancorp Accelerates Growth Trajectory with Acquisition of FLIC
Transaction Expands Reach, Strengthens Product Portfolio, and Enhances Customer Experience
ConnectOne Bancorp, Inc. (NASDAQ: CNOB), the parent company of ConnectOne Bank, today announced it has entered into a definitive agreement to acquire First Long Island Corporation (NASDAQ: FLIC), the parent company of First Long Island Bank. The transaction, valued at approximately $254 million, is expected to close in the fourth quarter of 2023, subject to customary closing conditions, including regulatory approvals and the approval of FLIC's shareholders.
Strategic Rationale
The acquisition of FLIC aligns with ConnectOne's strategic growth objectives and provides numerous benefits, including:
- Expansion of Geographic Footprint: FLIC's presence in Nassau and Suffolk counties on Long Island complements ConnectOne's existing operations in New Jersey and New York City, creating a broader regional banking franchise.
- Enhanced Product Portfolio: FLIC's specialized lending expertise in commercial real estate, healthcare, and professional services will complement ConnectOne's strong lending capabilities in these sectors.
- Improved Customer Service: The combined entity will offer a wider range of financial products and services, providing greater convenience and choice for customers.
- Cost Synergies and Revenue Opportunities: The transaction is expected to generate significant cost synergies through operational efficiencies and cross-selling opportunities.
ConnectOne's President and CEO, Frank Sorrentino, commented, "This acquisition is a transformative step forward for ConnectOne. FLIC's strong brand, experienced team, and loyal customer base make them an ideal partner for us. Together, we will create a formidable regional bank with a deep understanding of our customers' needs and a commitment to delivering exceptional service."
Financial Impact
The transaction is expected to be accretive to ConnectOne's earnings per share in 2024. The combined entity will have approximately $12 billion in assets, $8 billion in deposits, and $6 billion in loans.
Transaction Details
Under the terms of the agreement, FLIC shareholders will receive 0.935 shares of ConnectOne common stock for each share of FLIC common stock they own. The transaction has been unanimously approved by the boards of directors of both companies.
Piper Sandler & Co. served as financial advisor to ConnectOne, and Sullivan & Cromwell LLP served as legal counsel. Stephens Inc. served as financial advisor to FLIC, and Luse Gorman Pomerenk & Schick, P.C. served as legal counsel.
Comments