The First of Long Island Corporation (FLIC): Business Model Canvas [Dec-2025 Updated]

You're looking at the final blueprint of a regional bank that just got snapped up-The First of Long Island Corporation (FLIC) was acquired by ConnectOne Bancorp, Inc. for about $284 million in June 2025, and honestly, understanding its Business Model Canvas shows you exactly why it was an attractive target. Before the merger, FLIC ran a classic, high-touch community bank model, relying on a loyal deposit base for low-cost funding to fuel disciplined lending, evidenced by their $19.1 million in Net Interest Income in Q1 2025, all while maintaining a solid Book Value Per Share of $16.91. If you want to see the nine building blocks that defined its value proposition-from personalized service to conservative credit culture-right before this major transition, dig into the details below; it's a masterclass in local banking strategy.

The First of Long Island Corporation (FLIC) - Canvas Business Model: Key Partnerships

You're looking at the Key Partnerships for The First of Long Island Corporation (FLIC) as of late 2025, but honestly, the most significant partnership is the one that just finished-the merger with ConnectOne Bancorp, Inc. This wasn't just a handshake; it was a full integration that fundamentally changed the scale and structure of the business, effective June 1, 2025. So, we're really looking at the Key Partnerships of the combined entity, operating under the ConnectOne brand.

The primary partnership is the merger itself, which immediately provided greater scale and enhanced capabilities. This is where the hard numbers live:

The integration also brought in key personnel; Christopher Becker, formerly the CEO of The First National Bank of Long Island, is now the Vice Chairman of ConnectOne Bancorp, Inc. This transition required close coordination with regulatory bodies.

Federal and state regulatory bodies are always key partners, even if they aren't voluntary. The merger required specific approvals:

• Federal Deposit Insurance Corporation (FDIC): Approval was received on May 6, 2025.
• Federal Reserve Bank of New York: Approval or waivers were pending for the June 1, 2025 closing date.
• New Jersey Department of Banking and Insurance: Approval or waivers were also pending for the closing.

For liquidity management, which is critical, the combined entity is actively managing its funding mix. While specific correspondent banks aren't named, the actions taken show a reliance on wholesale funding sources, which are managed closely:

• Federal Home Loan Bank (FHLB) Borrowings: There was a reduction in wholesale FHLB borrowings by about $200 million during the second quarter of 2025, signaling a shift toward more stable, core deposits.

Technology vendors are crucial for maintaining the modern banking experience. The business model incorporates technology directly through its own subsidiary, but also relies on external infrastructure. The focus is on using technology to support a 'branch-lite' model and efficient operations, such as online account opening.

• BoeFly, Inc.: This is ConnectOne Bank's fintech subsidiary, which acts as a marketplace connecting borrowers in the franchise space with funding solutions through a network of partner banks.

For loan origination, especially in specialized areas, the partnership structure is implied through dedicated service lines. The bank explicitly targets certain professional sectors, suggesting established referral or service relationships with local firms in those fields:

• Local Legal Firms: ConnectOne Bank offers specific Law Firm Solutions, including escrow account management and business credit.
• Local Real Estate Firms: The bank offers Real Estate Services & Landlord Solutions, indicating deep engagement in that origination pipeline.

The advisors for the merger itself represent a temporary but critical partnership: Piper Sandler & Co. and Luse Gorman PC advised The First of Long Island Corporation, while Keefe, Bruyette & Woods and Windels Marx Lane & Mittendorf advised ConnectOne Bancorp. Finance: draft the pro-forma liquidity forecast incorporating the Q2 2025 FHLB reduction by next Tuesday.

The First of Long Island Corporation (FLIC) - Canvas Business Model: Key Activities

You're looking at the final operational snapshot of The First of Long Island Corporation (FLIC) before its June 2, 2025, merger with ConnectOne Bancorp, Inc. The core activities remained focused on traditional community banking, even as the structure was changing.

Loan origination and disciplined underwriting

The primary engine was originating loans, which formed the bulk of the interest-earning assets. As of March 31, 2025, the total loan portfolio stood at approximately $3.16 billion. Underwriting discipline is reflected in the credit quality metrics from that period. The allowance for credit losses represented a reserve coverage ratio of 0.89% of total loans. Honestly, the credit quality was still strong, though past due loans had ticked up to $7.5 million, with nonaccrual loans at $3.5 million on that date.

Deposit gathering and liability management

Attracting and managing local deposits was crucial for funding those loans. Total deposits were stable around $3.3 billion at the end of the first quarter of 2025. A key area of focus for liability management, given the rate environment, was the uninsured deposit level; 49.5% of total deposits were uninsured as of March 31, 2025. You also see the management of wholesale funding, with other borrowings down by $75.0 million from the end of 2024.

Here are the quick numbers from the Q1 2025 report:

Investment management of excess funds

The First of Long Island Corporation managed liquidity by holding securities. Available liquidity, which includes unencumbered securities, totaled $878.1 million on March 31, 2025. This reserve supported operations and provided a buffer leading into the merger. The Net Interest Income (NII) for the quarter was $18.8 million, accounting for the lion's share of the total revenue of approximately $21.37 million for the quarter.

Maintaining regulatory compliance

Operating as a regulated bank holding company meant constant attention to capital adequacy. The leverage ratio stood at approximately 10.29% as of March 31, 2025, showing a strong capital position leading into the transaction. The company also maintained its commitment to shareholders via dividends, declaring a quarterly cash dividend of $0.21 per share for the first quarter.

Branch network operations and customer service

The Bank served small to middle market businesses, professional service firms, not-for-profits, municipalities, and consumers primarily across Nassau and Suffolk Counties and New York City. The operational footprint was optimized leading up to the acquisition. Post-merger, the addition of The First National Bank of Long Island's locations brought 40 branches to ConnectOne, resulting in the combined entity having 60 branches in the New York area. The service culture was known for a "Customer First" banking experience. Key operational metrics from Q1 2025 included:

• Book value per share: $16.91 on March 31, 2025.
• Return on Average Assets (ROA): 0.37%.
• Return on Average Equity (ROE): 3.98%.
• Noninterest income for the quarter: approximately $2.57 million.

Finance: draft 13-week cash view by Friday.

The First of Long Island Corporation (FLIC) - Canvas Business Model: Key Resources

You're looking at the core assets The First of Long Island Corporation (FLIC) relies on to operate its business, especially right before the merger with ConnectOne Bancorp, Inc. closes around June 1, 2025. These aren't just line items; they are the tangible and intangible foundations of its value proposition.

Established Branch Network Across Long Island and NYC

The First National Bank of Long Island, the subsidiary, serves customers across Nassau and Suffolk Counties on Long Island and in the boroughs of New York City (NYC). The bank itself was organized way back in 1927. While the search results don't give the exact branch count for late 2025, we know the bank has been optimizing its network, following earlier consolidations in 2020 and 2021. The strategic importance of this physical footprint is underscored by the merger, which is set to position the combined entity as one of the top five community banks on Long Island based on deposit market share.

Core Deposit Base Providing Low-Cost Funding

The deposit base is the lifeblood for any bank, providing the necessary funding for lending activities. As of March 31, 2025, total deposits for The First of Long Island Corporation stood at $2.71 billion. You can see the composition of that funding base, which is critical for managing funding costs.

The cost of funds on total interest-bearing liabilities improved, with the average cost decreasing by 8 basis points to an average of 3.27% for the first quarter of 2025.

Capital Base with Book Value Per Share of $16.91 (Q1 2025)

The capital position shows the financial cushion the bank maintains. Book value per share was exactly $16.91 on March 31, 2025. That's a key metric for shareholders. Tangible book value per common share was even higher at $20.44 as of that same date. The overall capital strength is reflected in the regulatory ratios.

Here are the key capital and liquidity figures from the end of Q1 2025:

• Total Assets: $3.19 billion (as of March 31, 2025)
• Available Liquidity: $878.1 million (as of March 31, 2025)
• Leverage Ratio: Approximately 10.29% (as of March 31, 2025)
• Total Risk-Based Capital Ratio: 13.12% (as of March 31, 2025)

The bank declared a quarterly cash dividend of $0.21 per share during Q1 2025.

Local Market Expertise and Strong Community Ties

The bank's focus is serving small to middle market businesses, professional service firms, not-for-profits, municipalities, and consumers in its defined geographic area. This deep local knowledge is what the merger seeks to integrate with ConnectOne's commercial expertise. The CEO noted the integration effort is called seamless, suggesting strong internal alignment on community focus.

Digital Banking Infrastructure and IT Systems

You know that physical presence isn't everything anymore; the digital backbone matters immensely. The First of Long Island Corporation had planned to complete upgrades to its core system, business online banking, and branch systems in the first quarter of 2024. While specific late-2025 IT spending isn't detailed, industry trends show digital adoption is massive. For context, digital banking usage reached 89% of US adults in 2025. The cost difference is stark: the cost-per-transaction for digital banking is just $0.04 versus $4.00 for branch transactions. That efficiency is a key resource the bank is integrating.

Finance: draft 13-week cash view by Friday.

The First of Long Island Corporation (FLIC) - Canvas Business Model: Value Propositions

Personalized, high-touch community banking service.

Expertise in commercial and residential lending.

The First of Long Island Corporation (FLIC) supports its lending focus with a substantial, concentrated portfolio as of March 31, 2025:

Conservative credit culture and financial stability.

The First of Long Island Corporation (FLIC) demonstrates its conservative stance through capital strength and credit loss provisioning:

• Leverage Ratio: 10.29% (as of March 31, 2025)
• Allowance for Credit Losses to Total Loans: 0.89% (as of March 31, 2025)
• Available Liquidity: $878.1 million (as of March 31, 2025)

Broad product suite for small businesses and consumers.

The First of Long Island Corporation (FLIC) serves small to middle market businesses, professional service firms, not-for-profits, municipalities, and consumers.

Local decision-making for faster loan approvals.

The First of Long Island Corporation (FLIC) focuses its operations geographically:

• Primary service area includes Nassau and Suffolk Counties on Long Island and the NYC boroughs of Queens, Brooklyn, and Manhattan.

The First of Long Island Corporation (FLIC) - Canvas Business Model: Customer Relationships

You're looking at the customer relationship strategy for The First of Long Island Corporation, but honestly, as of late 2025, you're really looking at the integrated strategy under the ConnectOne brand following the merger closing around June 1, 2025. The stated goal is leveraging ConnectOne's commercial expertise to serve FLIC's distinguished client base. This combination creates an entity targeting approximately $14 billion in total assets, with $11 billion in deposits and $11 billion in loans, positioning it among the top five community banks on Long Island by deposit market share.

Dedicated relationship managers for commercial clients

The focus on commercial expertise suggests a continued, high-touch approach for business clients. While specific 2025 staffing numbers for dedicated relationship managers are not public, the strategic direction emphasizes this segment. The combined entity is expected to build upon The First National Bank of Long Island's commercial portfolio, which grew from $1.5 billion to $2.0 billion over the four years ending 2023, signaling a core relationship focus.

High-touch, in-person service at branch locations

The physical network remains a key touchpoint, though evolving. As of June 30, 2024, The First National Bank of Long Island operated 40 branches across the New York Metropolitan area, predominantly in Nassau and Suffolk Counties. The integration effort aimed for a seamless transition, suggesting these locations are being maintained or optimized for relationship banking.

Here are some key figures related to the physical footprint and service enhancements:

Automated digital self-service for routine transactions

The infrastructure for digital service was significantly upgraded prior to the merger, supporting the move toward efficiency for routine tasks. This is about making the simple stuff fast so bankers can focus on complex relationships. The technology upgrades completed in early 2024 included Fiserv's DNA core processing system, business online banking, and a business mobile app, alongside biometrics identification.

You have to keep pace with the market; in the US, as of 2025, approximately 83% of U.S. adults have used digital banking services, and 76% of American customers actively use mobile banking applications. This sets the baseline expectation for digital functionality.

• New technology implementation: Fiserv's DNA core processing system.
• Digital tools include: Business online banking and business mobile app.
• Security enhancement: Implementation of biometrics identification.

Focus on long-term, defintely sticky customer retention

The emphasis on combining 'highly complementary, client-focused banks' suggests retention of the existing, valuable client base is paramount. The merger itself is framed as unlocking new opportunities for clients, which is a direct retention driver. Executives, however, seem to have a different view of loyalty than consumers in the broader market; in a 2025 survey, about nine out of 10 executives said customer loyalty has grown, but only four out of 10 consumers agreed.

Direct access to senior bank officers

For commercial clients and likely high-value retail relationships, direct access remains a differentiator against larger, less personal institutions. The merger structure itself points to this continuity: Chris Becker, CEO of The First National Bank of Long Island, is set to become Vice Chairman of ConnectOne upon closing, ensuring continuity of senior leadership perspective for former FLIC clients.

The commitment to client service is echoed in the stated goal to enhance customer experience through new systems. Finance: draft 13-week cash view by Friday.

The First of Long Island Corporation (FLIC) - Canvas Business Model: Channels

The First National Bank of Long Island, the primary operating subsidiary of The First of Long Island Corporation, utilized a mix of physical and digital channels to reach its customer base, a structure that was fundamentally altered by the merger closing in the second quarter of 2025.

Physical branch network (First National Bank LI)

The physical footprint consisted of branches concentrated in the core Long Island market.

The bank was ranked #4 in Nassau County and #5 in Suffolk County in deposit market share among banks under $100 billion in assets, based on June 30, 2023 data.

Online and mobile banking platforms

Digital channels supported the bank's omnichannel delivery strategy, integrating with in-branch services.

• The flagship digital technology was the eStore platform.
• Small-business loan and deposit products were slated for addition to the eStore Common Application in 2025.
• General U.S. consumer preference in 2025 showed 78% favoring mobile app or online banking for account management.
• Of that digital preference, 42% favored a mobile app, and 36% favored online banking via a website.

Direct sales force for commercial lending

While The First National Bank of Long Island focused on relationship banking, its merger partner, ConnectOne Bancorp, Inc., brought significant commercial lending expertise, which was intended to be leveraged across the combined entity post-merger.

ATMs and shared network access

Specific data on The First National Bank of Long Island's ATM fleet size was not available, but the reliance on digital channels suggests a focus on convenience for cash access.

The industry context for late 2025 emphasized security compliance for all ATM networks, including adherence to the Payment Card Industry Data Security Standard (PCI DSS) and key management standards like TR-31 and TR-34.

Investor Relations for public shareholders (pre-merger)

Shareholder communication involved regular dividend declarations and financial reporting leading up to the merger vote in February 2025.

The combined entity, operating under the ConnectOne brand, was projected to have approximately $14 billion in total assets following the merger completion in Q2 2025.

The First of Long Island Corporation (FLIC) - Canvas Business Model: Customer Segments

You're looking at the customer base for The First of Long Island Corporation (FLIC), which, following its merger completion around June 1, 2025, now operates under the ConnectOne brand, significantly expanding its footprint. The core customer base, as detailed in the first quarter of 2025 filings, was concentrated in Nassau and Suffolk Counties of Long Island and the boroughs of New York City (NYC). The post-merger entity enhances this by establishing a retail network across New York, New Jersey, and Southeast Florida, now totaling over 60 branches.

The bank serves a diverse set of clients, ranging from local businesses to individuals. The scale of the lending and deposit base that informed this segment strategy as of March 31, 2025, was substantial:

The specific customer groups targeted by The First National Bank of Long Island, which are now integrated into the larger structure, include:

• Small and middle market businesses in the NY metro area, historically focused on Nassau and Suffolk Counties and Manhattan.
• Professional service firms, such as law and medical practices, which are core business banking clients.
• Not-for-profit organizations and municipalities, served through institutional banking services.
• Affluent and mass-market consumers, receiving personal banking and lending services.
• Residential and commercial real estate investors, as the loan portfolio was principally secured by properties in the Long Island/NYC areas.

The bank's operational framework before the merger was geographically focused, with its headquarters in Glen Head, New York, and prior to the merger, it operated 40 branches within the New York Metro area. The merger was intended to accelerate growth by leveraging greater scale and enhanced capabilities across the expanded region.

The First of Long Island Corporation (FLIC) - Canvas Business Model: Cost Structure

You're looking at the cost structure for The First of Long Island Corporation (FLIC) right before its merger completion in mid-2025, so the latest concrete figures are from the first quarter of 2025 (Q1 2025) and the end of 2024.

Salaries and employee benefits is noted as the largest noninterest cost component for The First of Long Island Corporation. While specific 2025 figures for this line item are not explicitly detailed in the latest reports, the prior quarter showed significant movement; for instance, the fourth quarter of 2024 saw an increase in salaries and employee benefits of $856,000 compared to the third quarter of 2024.

Interest expense management was a key factor in Q1 2025 net interest income performance. The company reported a notable $2.0 million decrease in interest expenses during the first quarter of 2025, which helped offset a drop in interest income. This contrasts with a report indicating that net interest income fell primarily due to an increase in interest expense that outpaced the rise in interest income in the same period.

Noninterest expenses were heavily influenced by strategic activities, particularly the pending merger with ConnectOne Bancorp, Inc. Total noninterest expense rose by $4.1 million year-over-year (likely Q1 2025 vs. Q1 2024), largely due to merger and branch consolidation expenses. However, excluding these specific items, the underlying noninterest expense increased by 1.6% year-over-year. The sequential improvement in Q1 2025 earnings was partly attributed to lower noninterest expense because branch consolidation costs recorded in the fourth quarter of 2024 did not recur.

The Provision for credit losses was a specific charge taken in Q1 2025. The First of Long Island Corporation recorded a provision for credit losses of $168,000 in Q1 2025. This compares to a provision of $359,000 recorded in the same quarter the prior year.

Costs associated with the physical footprint, such as Occupancy and technology expenses for branches, were highlighted through consolidation activities. Branch consolidation expenses specifically amounted to $840,000 in the fourth quarter of 2024.

Here's a quick look at the cost-related movements around the end of 2024 and early 2025:

You should also note the general expense profile for the bank holding company:

• The company maintained a leverage ratio of 10.12% at year-end 2024, exceeding regulatory requirements.
• The allowance for credit losses stood at 0.88% of total loans at year-end 2024.
• Nonaccrual loans were $3.2 million, or 0.10% of total loans, at year-end 2024.
• The efficiency ratio deteriorated to 79.00% for the full year 2024.

Finance: draft 13-week cash view by Friday, incorporating post-merger expense run-rates.

The First of Long Island Corporation (FLIC) - Canvas Business Model: Revenue Streams

The revenue streams for The First of Long Island Corporation (FLIC) are fundamentally rooted in traditional community banking, heavily weighted toward the spread earned on its assets.

Net Interest Income (NII) from loan/investment spread remains the dominant source of revenue. This is the core function: earning more on loans and investments than is paid out on deposits and borrowings. NII was $19.1 million in Q1 2025, which represented an increase of 3.6% or $660,000 from the same period in 2024. The Net Interest Margin (NIM) for Q1 2025 expanded to 1.91%.

The generation of this NII is directly tied to the composition of the loan portfolio as of March 31, 2025:

The total revenue for the quarter ended March 31, 2025, was approximately $21.37 million. The remainder of the revenue comes from Noninterest Income, which was approximately $2.57 million for Q1 2025.

This noninterest income is derived from several fee-based activities and other sources, as outlined in the business model:

• Service charges on deposit accounts and fees
• Bank-Owned Life Insurance (BOLI) earnings
• Interchange and merchant card service fees

Specific components contributing to the noninterest income stream, based on prior period data and Q1 2025 commentary, include:

• Service charges on deposit accounts saw an 11.3% increase year-over-year in 2024.
• Merchant card services income increased by $655,000 in 2024.
• A decrease in Q1 2025 noninterest income was partially attributed to lapping $225,000 of Bank-Owned Life Insurance (BOLI) benefit payments earned in the fourth quarter of 2024.

You should note that the $19.1 million NII figure is the most concrete number for the primary revenue driver for the period you are analyzing. Finance: draft 13-week cash view by Friday.