ConnectOne Bancorp (CNOB) M&A Announcement summary

Deal rationale and strategic fit

• Merger creates a $14B bank holding company with a top-five deposit market share on Long Island, accelerating growth strategies and expanding reach in the Greater New York area.

• Adds over $3 billion in deposits, boosting local market share to #4 in Nassau and #5 in Suffolk counties.

• Both banks share strong credit cultures, client-first focus, and community commitment, with minimal overlap and strong CRA alignment.

• Enhances product offerings, lending capabilities, and technological solutions for clients and employees.

• Positions the combined entity to compete more effectively in the New York City market and benefit from ongoing M&A activity.

Financial terms and conditions

• 100% stock merger: 0.5175 shares of ConnectOne for each First of Long Island share, valuing each at $12.40 and the deal at approximately $284M.

• First of Long Island shareholders will own about 24% of the combined company.

• Transaction metrics: 0.74x price/tangible book value, 10.8x price/2025 earnings, and 3.0% core deposit premium.

• Pro forma capital ratios remain strong, with a planned $100M subordinated debt issuance before closing in 2025.

• Deal is 36% accretive to EPS by 2025-2026, with tangible book value dilution of 11.9%-12% and earn-back in under three years.

Synergies and expected cost savings

• Targeted cost savings are 35% of FLIC noninterest expense, phased in 50% in 2025 and 100% thereafter, mainly from system contracts, consultants, and resource reallocation.

• Projected pro forma efficiency ratio is about 44-45% in 2025, with potential for further improvement.

• Meaningful EPS accretion: 36% in 2025, with tangible book value earnback in under three years.