Financial Performance - Net income available to common stockholders for Q3 2024 was $15.7 million, down from $19.9 million in Q3 2023, representing a decrease of 21.1%[151]. - Diluted earnings per share for Q3 2024 were $0.41, compared to $0.51 for Q3 2023, reflecting a decrease of 19.6%[151]. - For the nine months ended September 30, 2024, net income available to common stockholders was $48.9 million, a decrease of 22.0% from $63.2 million in the same period of 2023[152]. Credit Losses and Risk - The provision for credit losses increased by $2.3 million in Q3 2024 and by $4.8 million for the nine months ended September 30, 2024, indicating rising credit risk[151][152]. - The provision for credit losses for the three months ended September 30, 2024, was $3.8 million, compared to $1.5 million for the same period in 2023, reflecting an increase of 153.3%[177]. - Net charge-offs for the nine months ended September 30, 2024, were $9.9 million, compared to $8.0 million for the same period in 2023, representing a year-over-year increase of 23.8%[178]. - Nonaccrual loans totaled $51.3 million as of September 30, 2024, down from $52.5 million as of December 31, 2023[184]. Interest Income and Margin - Fully taxable equivalent net interest income for Q3 2024 decreased by $1.5 million, or 2.4%, compared to Q3 2023, primarily due to a decrease in net interest margin[154]. - The net interest margin for Q3 2024 was 2.67%, down from 2.76% in Q3 2023, reflecting a contraction of 9 basis points[154]. - For the nine months ended September 30, 2024, net interest income was $182.6 million, a decrease from $193.3 million in the same period of 2023, reflecting a net interest margin of 2.67% compared to 2.85%[160]. Asset and Loan Portfolio - Total assets as of September 30, 2024, were $9.74 billion, compared to $9.63 billion as of September 30, 2023, indicating a growth of 1.2%[158]. - As of September 30, 2024, gross loans totaled $8.1 billion, a decrease of $235.5 million or 2.8% compared to December 31, 2023[170]. - The commercial real estate loan segment represented 70.7% of the total loan portfolio as of September 30, 2024, with a balance of $5.7 billion, down from $5.9 billion at the end of 2023[170]. - Average loans receivable for the three months ended September 30, 2024, were $8.1 billion, compared to $8.2 billion for the same period in 2023[181]. Noninterest Income and Expenses - Noninterest income for the nine months ended September 30, 2024, totaled $13.0 million, up from $9.8 million in the same period of 2023, driven by increases in net gains on equity securities and loans held-for-sale[163]. - Noninterest expenses for Q3 2024 included $0.7 million in merger expenses related to the merger with The First of Long Island Corporation[151]. - Noninterest expenses for the nine months ended September 30, 2024, were $113.3 million, an increase from $106.1 million in the same period of 2023, primarily due to higher technology investments and merger-related expenses[165]. Deposits and Liquidity - Average total deposits increased by $27.7 million, or 0.4%, during the third quarter of 2024 compared to the same period in 2023[208]. - Total deposits decreased by $12.1 million, or 0.2%, to $7.52 billion as of September 30, 2024, from $7.54 billion as of December 31, 2023[222]. - Cash and cash equivalents totaled $247.2 million as of September 30, 2024, a decrease of $4.5 million from $242.7 million as of December 31, 2023[204]. - Liquid assets totaled $705.9 million, representing 7.3% of total assets, an increase from $516.3 million (5.2% of total assets) as of December 31, 2023[202]. Capital Ratios - The Company reported a tangible common equity ratio of 9.71% and tangible book value per share of $23.85 as of September 30, 2024, compared to 9.25% and $23.14, respectively, as of December 31, 2023[230]. - Tier 1 leverage capital was reported at $1.07 billion with a ratio of 11.10% as of September 30, 2024, exceeding the minimum requirement of 4.00%[236]. - CET I risk-based ratio stood at 11.07% as of September 30, 2024, above the minimum requirement of 4.50%[236]. - The Total risk-based capital reached $1,182,876 thousand, resulting in a ratio of 13.77%[238]. Interest Rate Risk - Interest rate risk management is identified as the primary market risk for the Company[240]. - As of September 30, 2024, a 200 basis-point increase in interest rates is estimated to decrease net interest income (NII) by 3.95%, while a 100 basis-point decrease would increase NII by 1.32%[192]. - The estimated economic value of equity (EVE) as of September 30, 2024, would decrease by 9.81% with a 200 basis-point increase in interest rates, and increase by 2.23% with a 100 basis-point decrease[194].

Financial Data and Key Metrics Changes - The company reported a slight reduction in its loan portfolio during Q3 2024, which was attributed to active efforts in reducing non-relationship loans, improving the loan-to-deposit ratio and lowering commercial real estate (CRE) concentration [7][9] - Average client deposits increased by approximately $130 million, or 8% on an annualized basis, while average broker deposits declined by $60 million [8] - The net interest margin (NIM) on a core basis was flat, but the spot margin ended the quarter approximately 10 basis points wider due to the Fed's 50 basis point cut in September [8][11] Business Line Data and Key Metrics Changes - Loan originations remained solid, with expectations for muted growth in the next two quarters, followed by a return to mid- to high single-digit growth [7] - The merger with First of Long Island Corporation is expected to enhance the company's balance sheet mix and expand market reach, increasing pro forma market cap to $1.3 billion [5][14] Market Data and Key Metrics Changes - The merger will position the combined entity as one of the top community banks on Long Island, enhancing its presence in a region where the company has been focusing its efforts [6] - The transaction is expected to create meaningful revenue synergies with minimal client overlap, particularly in residential mortgage origination and SBA lending [6] Company Strategy and Development Direction - The company remains committed to strategic priorities such as supporting clients, extending competitive position, driving profitable growth, and investing in its franchise [4] - The merger is seen as a financially disciplined transaction that will create synergies and enhance growth potential [4][5] Management's Comments on Operating Environment and Future Outlook - Management noted that the economy is currently slow, impacting loan growth, but there are signs of improvement in certain areas such as construction and owner-occupied loans [21] - The company is optimistic about its ability to drive increased profitability through the fourth quarter and into 2025, especially post-merger [8][11] Other Important Information - The allowance for credit loss percentage is expected to strengthen from 1.02% to 1.33% on a pro forma basis due to the merger [14] - Credit quality remains sound, with non-accrual loans and charge-offs fluctuating but within expectations [15] Q&A Session Summary Question: Clarification on loan growth timing - Management indicated that loan growth is expected to be muted for another quarter or two, with signs of a pickup anticipated by the second quarter of 2025 [21] Question: Expectations around loan and deposit betas - Management expects betas to range from 60 to 100 on the next cut, with current projections sticking to an 80% beta [22] Question: Update on sub debt raise - The company plans to execute a $175 million offering in the first quarter of next year, combining a $75 million sub debt repricing with a new raise [24] Question: Spot interest margin clarification - The spot interest margin was reported as up 10 basis points from the third quarter average, with projections for the fourth quarter at approximately $280 million [28] Question: Drivers of criticized loans increase - The increase in criticized loans was primarily due to loan modifications that placed loans into special mention, which are expected to be restored [34]

Core Viewpoint - ConnectOne Bancorp reported a decline in revenue and earnings per share (EPS) for the quarter ended September 2024, missing Wall Street expectations in both metrics [1] Financial Performance Summary - Revenue for the quarter was $65.62 million, down 0.5% year-over-year, and below the Zacks Consensus Estimate of $67.87 million, resulting in a surprise of -3.31% [1] - EPS was reported at $0.42, compared to $0.51 in the same quarter last year, with an EPS surprise of -6.67% against a consensus estimate of $0.45 [1] - Efficiency Ratio was 57%, slightly above the average estimate of 55.9% from two analysts [2] - Net Interest Margin (GAAP) was 2.7%, below the average estimate of 2.8% [2] - Average Balance of Total interest-earning assets was $9.21 billion, slightly below the estimated $9.23 billion [2] - Deposit, loan, and other income totaled $1.82 million, compared to the estimated $1.85 million [2] - Net Interest Income (tax equivalent basis) was $61.71 million, below the average estimate of $64.33 million [2] - Net gains on sale of loans held-for-sale were $0.34 million, significantly lower than the estimated $0.89 million [2] - Income on bank-owned life insurance was $2.15 million, exceeding the average estimate of $1.86 million [2] - Total Noninterest Income was $4.74 million, above the estimated $4.09 million [2] Stock Performance - Shares of ConnectOne have returned +4.6% over the past month, outperforming the Zacks S&P 500 composite's +1.5% change [3] - The stock currently holds a Zacks Rank 1 (Strong Buy), indicating potential for outperformance in the near term [3]

Financial Performance - ConnectOne Bancorp reported quarterly earnings of $0.42 per share, missing the Zacks Consensus Estimate of $0.45 per share, and down from $0.51 per share a year ago, representing an earnings surprise of -6.67% [1] - The company posted revenues of $65.62 million for the quarter ended September 2024, missing the Zacks Consensus Estimate by 3.31%, compared to year-ago revenues of $65.92 million [1] Earnings Outlook - The current consensus EPS estimate for the coming quarter is $0.49 on revenues of $70.14 million, and for the current fiscal year, it is $1.78 on revenues of $268.12 million [4] - The estimate revisions trend for ConnectOne is currently favorable, leading to a Zacks Rank 1 (Strong Buy) for the stock, indicating expected outperformance in the near future [4] Industry Context - The Banks - Northeast industry, to which ConnectOne belongs, is currently in the top 19% of over 250 Zacks industries, suggesting a positive outlook for stocks within this sector [5] - Esquire Financial Holdings, Inc., another company in the same industry, is expected to report quarterly earnings of $1.32 per share, reflecting a year-over-year change of +12.8% [5]

Financial Performance - Net income available to common stockholders for Q3 2024 was $15.7 million, down from $17.5 million in Q2 2024 and $19.9 million in Q3 2023[1]. - Diluted earnings per share decreased to $0.41 in Q3 2024 from $0.46 in Q2 2024 and $0.51 in Q3 2023[1]. - Operating net income for Q3 2024 was $16.1 million, compared to $17.9 million in Q2 2024 and $20.4 million in Q3 2023[2]. - Net income for the three months ended September 30, 2024, was $17,161,000, a decrease of 20.8% compared to $21,407,000 for the same period last year[20]. - Earnings per common share (diluted) for the quarter was $0.41, down from $0.51 in the prior year, a decline of 19.6%[20]. - Net interest income for the quarter ended September 30, 2024, was $60,887 thousand, a decrease of 0.9% from $61,439 thousand in the previous quarter[24]. - Operating revenue for the quarter was $66,015 thousand, a decrease of 1.27% compared to $66,863 thousand in the previous quarter[26]. Income and Expenses - Noninterest income increased to $4.7 million in Q3 2024, up from $4.4 million in Q2 2024 and $3.6 million in Q3 2023[8]. - Noninterest expenses rose to $38.6 million in Q3 2024, compared to $37.6 million in Q2 2024 and $35.8 million in Q3 2023[9]. - The company reported a total noninterest expense of $38,641,000, an increase of 8.1% from $35,784,000 in the prior year[20]. - Total noninterest expenses rose to $38,641 thousand, an increase of 2.79% from $37,594 thousand in the previous quarter[26]. Credit Losses - The provision for credit losses was $3.8 million in Q3 2024, up from $2.5 million in Q2 2024 and $1.5 million in Q3 2023[11]. - Provision for credit losses increased to $3,800,000 from $1,500,000, representing a significant rise of 153.3%[20]. - Provision for credit losses increased to $3,800 thousand from $2,500 thousand in the previous quarter, indicating a rise in expected credit losses[24]. - Nonaccrual loans increased to $51,300 thousand from $46,026 thousand in the previous quarter, indicating a rise of 11.67%[27]. - Nonaccrual loans as a percentage of loans receivable increased to 0.63%, up from 0.56% in the prior quarter[28]. Assets and Liabilities - Total assets decreased to $9.639 billion as of September 30, 2024, from $9.856 billion as of December 31, 2023[13]. - Total assets as of September 30, 2024, were $9,639,603,000, a decrease of 2.2% from $9,855,603,000 on December 31, 2023[19]. - Total deposits were $7,524,105,000, down slightly from $7,536,202,000, a decrease of 0.2%[19]. - Total assets as of September 30, 2024, were $9,639,603, a decrease of 0.87% from $9,723,731 on June 30, 2024[22]. - Total interest-earning assets amounted to $9,206,038, with net interest income on a tax equivalent basis reported at $61,710[30]. - Total interest-bearing liabilities were $7,171,426, with an interest expense of $69,356[29]. Loans and Deposits - Net loans receivable decreased to $8,029,482,000 from $8,263,171,000, reflecting a decline of 2.8%[19]. - Gross loans decreased to $8,116,332 as of September 30, 2024, down 0.56% from $8,162,500 on June 30, 2024[22]. - Total deposits were $7,524,105 as of September 30, 2024, a decrease of 0.69% from $7,576,014 on June 30, 2024[22]. - Time deposits were $2,614,187 as of September 30, 2024, an increase from $2,593,165 on June 30, 2024[23]. - Commercial loans increased to $1,505,743 as of September 30, 2024, up from $1,491,079 on June 30, 2024[22]. Mergers and Future Plans - The company announced a planned merger with The First of Long Island Corporation, aiming to enhance growth across markets[4]. Dividends - A cash dividend of $0.18 per share on common stock will be paid on December 2, 2024[5].

Group 1 - Monteverde & Associates PC is investigating ConnectOne Bancorp, Inc. regarding its proposed merger with The First of Long Island Corporation [1] - Under the merger agreement, ConnectOne shareholders will receive 0.5175 shares of FLIC common stock for each share of ConnectOne they own [1] - Monteverde & Associates PC has a successful track record in recovering money for shareholders and is recognized as a Top 50 Firm in the 2018-2022 ISS Securities Class Action Services Report [1][2] Group 2 - The firm operates from the Empire State Building in New York City and specializes in class action securities litigation [2] - Monteverde & Associates PC emphasizes the importance of legal representation in class actions and encourages potential clients to inquire about the firm's recovery history [2][3] - The firm provides free consultations for shareholders with concerns regarding the merger [3]

Table of Contents UNITED STATES OF AMERICA SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q (Mark One) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the Quarterly Period Ended June 30, 2024 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission File Number: 000-11486 CONNECTONE BANCORP, INC. (Exact Name of Registrant as Specified in Its Charter) New Jersey 52 ...

ConnectOne Bancorp, Inc. (NASDAQ:CNOB) Q2 2024 Earnings Conference Call July 25, 2024 10:00 AM ET Company Participants Siya Vansia - Chief Brand and Innovation Officer Frank Sorrentino - Chairman and Chief Executive Officer William Burns - Senior Executive Vice President and Chief Financial Officer Conference Call Participants Timothy Switzer - KBW Frank Schiraldi - Piper Sandler Daniel Tamayo - Raymond James Matthew Breese - Stephens Operator Thank you for standing by. At this time, I'd like to welcome eve ...

ConnectOne Bancorp (CNOB) reported $65.84 million in revenue for the quarter ended June 2024, representing a year-over-year decline of 2.1%. EPS of $0.46 for the same period compares to $0.51 a year ago. The reported revenue compares to the Zacks Consensus Estimate of $64.62 million, representing a surprise of +1.89%. The company delivered an EPS surprise of +15.00%, with the consensus EPS estimate being $0.40. While investors closely watch year-over-year changes in headline numbers -- revenue and earnings ...

Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Banks - Northeast is currently in the top 20% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1. One other stock from the same industry, MainStreet Bank (MNSB) , is yet to report results for the quarter ended June 2024. Conn ...