Core Points - ConnectOne Bancorp reported a net loss of $(21.8) million for Q2 2025, a significant decline from net income of $18.7 million in Q1 2025 and $17.5 million in Q2 2024 [1][3] - The merger with The First of Long Island Corporation was completed on June 1, 2025, contributing to the financial results for the quarter [1][4] - Operating net income, excluding non-operating items, was $23.1 million for Q2 2025, up from $19.7 million in Q1 2025 and $17.9 million in Q2 2024 [2] Financial Performance - Diluted earnings per share were $(0.52) for Q2 2025, compared to $0.49 for Q1 2025 and $0.46 for Q2 2024 [1] - Return on average assets was (0.73)% for Q2 2025, down from 0.84% in Q1 2025 and 0.79% in Q2 2024 [1] - Operating return on average assets was 0.89% for Q2 2025, slightly up from 0.88% in Q1 2025 and 0.80% in Q2 2024 [2] Revenue and Expenses - Noninterest expenses increased to $73.6 million in Q2 2025, up from $39.3 million in Q1 2025 and $37.6 million in Q2 2024, primarily due to merger-related costs [10] - Net interest income for Q2 2025 was $78.9 million, an increase of $13.2 million or 19.9% from Q1 2025, driven by a widening net interest margin [7] - The provision for credit losses was $35.7 million in Q2 2025, significantly higher than $3.5 million in Q1 2025 and $2.5 million in Q2 2024, with $27.4 million attributed to the merger [13] Asset Quality - Nonperforming assets decreased to $39.2 million as of June 30, 2025, down from $57.3 million at the end of 2024 and $46.0 million in Q2 2024 [14] - The allowance for credit losses increased to $156.2 million as of June 30, 2025, representing 1.40% of loans receivable [15] Balance Sheet Highlights - Total assets reached $13.9 billion as of June 30, 2025, compared to $9.9 billion at the end of 2024, largely due to the merger [16] - Total deposits were $11.3 billion as of June 30, 2025, up from $7.8 billion at the end of 2024 [16] - The company's total stockholders' equity increased to $1.5 billion as of June 30, 2025, from $1.2 billion at the end of 2024 [17]

Core Viewpoint - ConnectOne Bancorp, Inc. plans to release its second quarter financial results for the period ending June 30, 2025, on July 29, 2025, before market opening [1] Group 1: Financial Performance Announcement - The company will host a conference call and audio webcast at 10:00 a.m. ET on July 29, 2025, to discuss its financial performance and operating results [1] - The conference call will be led by Chairman and CEO Frank Sorrentino III and CFO William S. Burns [2] - Participants are encouraged to dial in at least five minutes prior to the call using the provided dial-in number and access code [2] Group 2: Replay and Webcast Information - A replay of the conference call will be available starting at approximately 1:00 p.m. ET on July 29, 2025, until August 5, 2025 [3] - An online archive of the webcast will be accessible after the conference call on the company's website [3] Group 3: Company Overview - ConnectOne Bancorp, Inc. operates through its subsidiary ConnectOne Bank and its fintech subsidiary BoeFly, Inc., focusing on small to middle-market businesses [4] - ConnectOne Bank offers a comprehensive range of banking and lending products and services [4] - The company is publicly traded on the Nasdaq Global Market under the symbol "CNOB" [4]

Core Viewpoint - Momentum investing focuses on following a stock's recent price trends, aiming to buy high and sell higher, with the expectation that established trends will continue [1] Company Overview: ConnectOne Bancorp (CNOB) - ConnectOne Bancorp currently holds a Momentum Style Score of B and a Zacks Rank of 2 (Buy), indicating strong potential for outperformance [2][3] - The stock has shown significant price appreciation, with a 6.41% increase over the past week, outperforming the Zacks Banks - Northeast industry, which rose 4.31% [5] - Over the last month, CNOB's shares increased by 10.86%, compared to the industry's 9.21% [5] - In the longer term, CNOB shares have risen 18.14% over the past quarter and 34.53% over the past year, while the S&P 500 increased by 16.66% and 14.76%, respectively [6] Trading Volume - The average 20-day trading volume for CNOB is 298,147 shares, which serves as a bullish indicator when combined with rising stock prices [7] Earnings Outlook - Recent earnings estimate revisions for CNOB have been positive, with two estimates moving higher and none lower over the past two months, raising the consensus estimate from $2.30 to $2.50 [9] - For the next fiscal year, one estimate has increased, with no downward revisions noted [9] Conclusion - Given the positive momentum indicators and earnings outlook, CNOB is positioned as a strong buy candidate for investors seeking short-term gains [11]

Company Overview - ConnectOne Bancorp (CNOB) is based in Englewood Cliffs and operates in the Finance sector, with a year-to-date share price change of 1.09% [3] - The company currently pays a dividend of $0.18 per share, resulting in a dividend yield of 3.11%, which is higher than the Banks - Northeast industry's yield of 2.78% and the S&P 500's yield of 1.57% [3] Dividend Performance - The current annualized dividend of $0.72 represents a 1.4% increase from the previous year [4] - Over the past five years, ConnectOne Bancorp has increased its dividend four times, achieving an average annual increase of 18.45% [4] - The company's payout ratio stands at 38%, indicating that it paid out 38% of its trailing 12-month earnings per share as dividends [4] Earnings Growth Expectations - For the fiscal year, CNOB anticipates solid earnings growth, with the Zacks Consensus Estimate for 2025 projected at $2.50 per share, reflecting a year-over-year earnings growth rate of 37.36% [5] Investment Appeal - ConnectOne Bancorp is viewed as an attractive dividend play and a compelling investment opportunity, currently holding a Zacks Rank of 2 (Buy) [7]

Core Insights - ConnectOne Bancorp, Inc. has appointed Robert A. Schwartz as General Counsel effective June 1, 2025, to enhance executive leadership capabilities following its merger with First of Long Island Corporation [1][2] - Schwartz brings extensive experience in mergers and acquisitions, securities law, and bank regulatory frameworks, which will be crucial for advising the Board and executive leadership on legal and business risks [2][4] - The appointment is significant as ConnectOne recently achieved nearly $14 billion in assets, indicating a period of growth and expansion for the company [2] Company Overview - ConnectOne Bancorp operates through its subsidiary, ConnectOne Bank, and its fintech subsidiary, BoeFly, Inc., providing a full suite of banking and lending products focused on small to middle-market businesses [5] - BoeFly, Inc. serves as a fintech marketplace connecting borrowers in the franchise space with funding solutions through a network of partner banks [5] - ConnectOne Bancorp is publicly traded on the Nasdaq Global Market under the symbol "CNOB" [5]

Core Viewpoint - ConnectOne Bancorp, Inc. has successfully completed its merger with The First of Long Island Corporation, creating a combined entity with approximately $14 billion in total assets, $11 billion in total deposits, and $11 billion in total loans [1]. Group 1: Merger Details - The merger allows ConnectOne to operate under a unified brand, enhancing its scale and capabilities while maintaining a client-first culture [2]. - First of Long Island shareholders received 0.5175 shares of ConnectOne common stock for each share of FLIC common stock owned, along with cash for any fractional shares [3]. Group 2: Leadership and Governance - Following the merger, ConnectOne's Board of Directors has expanded to 15 members, with Christopher Becker appointed as Vice Chairman [4]. - The addition of new board members is expected to bring valuable industry expertise and strategic insight to support the company's growth [5]. Group 3: Company Overview - ConnectOne Bancorp operates through its subsidiary, ConnectOne Bank, and its fintech subsidiary, BoeFly, Inc., focusing on small to middle-market businesses [6].

Core Viewpoint - ConnectOne Bancorp, Inc. and The First of Long Island Corporation have received FDIC approval for their merger, which is expected to close around June 1, 2025, pending additional regulatory approvals [1][2][3] Group 1: Merger Details - The merger will combine ConnectOne and First of Long Island, creating a company with approximately $14 billion in total assets, $11 billion in total deposits, and $11 billion in total loans [3] - The combined entity will operate under the ConnectOne brand and will rank among the top 5 community banks on Long Island in terms of deposit market share [3] Group 2: Leadership Statements - Frank Sorrentino III, CEO of ConnectOne, expressed confidence in leveraging ConnectOne's commercial expertise and infrastructure to serve First of Long Island's client base [3] - Chris Becker, CEO of The First National Bank of Long Island, highlighted the readiness of both teams for a seamless integration and emphasized shared values in client service [3] Group 3: Company Backgrounds - ConnectOne Bancorp, Inc. operates through ConnectOne Bank and offers a full suite of banking and lending products focused on small to middle-market businesses [4] - The First of Long Island Corporation, founded in 1927, focuses on business and consumer needs in Long Island and New York City, known for its "Customer First" banking experience [5]

Financial Performance - Net income available to common stockholders for Q1 2025 was $18.7 million, up from $15.7 million in Q1 2024, representing a 19.1% increase[174]. - Diluted earnings per share increased to $0.49 in Q1 2025 from $0.41 in Q1 2024, reflecting an increase of 19.5%[174]. - Noninterest income rose to $4.5 million in Q1 2025, compared to $3.8 million in Q1 2024, marking an 18.4% increase[184]. - Noninterest expenses totaled $39.3 million in Q1 2025, up from $37.1 million in Q1 2024, reflecting a 5.9% increase[185]. - Income tax expense increased to $7.2 million in Q1 2025 from $5.9 million in Q1 2024, resulting in an effective tax rate of 26.1%[186]. Interest Income and Margin - Fully taxable equivalent net interest income for Q1 2025 was $66.6 million, a 9.0% increase from $61.1 million in Q1 2024[176]. - The net interest margin improved to 2.93% in Q1 2025, up from 2.64% in Q1 2024, indicating a 29 basis-point increase[176]. Loan Portfolio - Gross loans decreased by $74.1 million, or 0.9%, to $8.2 billion as of March 31, 2025, compared to December 31, 2024[188]. - The loan portfolio composition as of March 31, 2025 included 71.1% in commercial real estate loans[188]. - As of March 31, 2025, the total commercial real estate loans amounted to $5,837.7 million, a slight decrease from $5,880.7 million as of December 31, 2024, with a loan-to-value ratio of 53%[190]. - Average loans receivable for the three months ended March 31, 2025, were $8,208.8 million, down from $8,332.7 million for the same period in 2024[201]. Credit Quality - The allowance for credit losses for loans was $82.4 million as of March 31, 2025, down from $82.7 million as of December 31, 2024[195]. - The provision for credit losses for the three months ended March 31, 2025, was $3.5 million, compared to $4.0 million for the same period in 2024[196]. - Net charge-offs for the three months ended March 31, 2025, were $3.4 million, representing 0.17% of average loans receivable, compared to $3.2 million or 0.15% for the same period in 2024[197]. - Nonaccrual loans decreased to $49.9 million as of March 31, 2025, from $57.3 million as of December 31, 2024, with nonaccrual loans to total loans receivable at 0.61%[205]. Securities and Investments - The average securities portfolio increased by $25.6 million to $745.9 million, representing 8.1% of average total interest-earning assets for the three months ended March 31, 2025[206]. - Net unrealized losses on securities available-for-sale decreased to $64.2 million as of March 31, 2025, from $69.6 million as of December 31, 2024[207]. Liquidity and Deposits - Liquid assets as of March 31, 2025, totaled $574.7 million, representing 5.9% of total assets, down from $799.7 million or 8.1% of total assets as of December 31, 2024[223]. - Average total deposits increased by $156.5 million, or 2.1%, during the three months ended March 31, 2025, compared to the same period in 2024[230]. - Total deposits decreased by $52.9 million, or 0.7%, from December 31, 2024, primarily due to a $102.8 million decrease in noninterest-bearing demand deposits[237]. - Estimated uninsured deposits increased to $6,999,118 thousand as of March 31, 2025, compared to $6,883,241 thousand as of December 31, 2024[236]. Capital and Equity - The Company’s stockholders' equity increased by $11.2 million to $1,252,939 thousand as of March 31, 2025, driven by an increase in retained earnings[244]. - The tangible common equity ratio improved to 9.73% as of March 31, 2025, up from 9.49% as of December 31, 2024[246]. - Total risk-based capital ratio for the Company was 14.29% as of March 31, 2025, exceeding the minimum requirement of 8.00%[250]. Interest Rate Risk Management - The Bank's interest rate risk management strategies include diversifying the mix of interest-earning assets and liabilities and utilizing interest rate swap agreements[209]. - As of March 31, 2025, a 200 basis-point increase in interest rates is estimated to decrease net interest income by 5.30%, while a 100 basis-point decrease would increase net interest income by 2.27%[212]. - The estimated economic value of equity (EVE) would decrease by 5.11% with a 200 basis-point increase in interest rates as of March 31, 2025[214].

Company Overview - ConnectOne Bancorp (CNOB) is based in Englewood Cliffs and operates in the Finance sector, with a year-to-date share price change of -0.74% [3] - The company currently pays a dividend of $0.18 per share, resulting in a dividend yield of 3.17%, which is higher than the Banks - Northeast industry's yield of 2.87% and the S&P 500's yield of 1.64% [3] Dividend Performance - The annualized dividend of $0.72 represents a 1.4% increase from the previous year [4] - Over the past 5 years, ConnectOne Bancorp has increased its dividend 4 times, achieving an average annual increase of 18.45% [4] - The current payout ratio is 38%, indicating that the company pays out 38% of its trailing 12-month earnings per share as dividends [4] Earnings Growth - The Zacks Consensus Estimate for 2025 projects earnings of $2.48 per share, reflecting a year-over-year earnings growth rate of 36.26% [5] Investment Considerations - Dividends are favored by investors as they enhance stock investing profits, reduce overall portfolio risk, and offer tax advantages [6] - While established firms are typically viewed as the best dividend options, high-growth businesses and tech start-ups rarely offer dividends [7] - CNOB is considered a compelling investment opportunity due to its strong dividend profile and current Zacks Rank of 3 (Hold) [7]

ConnectOne Bancorp, Inc. (NASDAQ:CNOB) Q1 2025 Earnings Conference Call April 24, 2025 10:00 AM ET Company Participants Siya Vansia - Chief Brand & Innovation Officer Frank Sorrentino - Chairman & Chief Executive Officer Bill Burns - Senior Executive Vice President & Chief Financial Officer Conference Call Participants Tim Switzer - KBW Feddie Strickland - Hovde Group Daniel Tamayo - Raymond James Matthew Breese - Stephens Inc. Operator Thank you for standing by. My name is Kate, and I will be your conferen ...