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 ...

Group 1 - ConnectOne Bancorp reported revenue of $65.84 million for the quarter ended June 2024, a year-over-year decline of 2.1% [1] - The EPS for the same period was $0.46, down from $0.51 a year ago, but exceeded the consensus estimate of $0.40 by 15% [1][3] - The reported revenue surpassed the Zacks Consensus Estimate of $64.62 million, resulting in a surprise of +1.89% [1] Group 2 - Key performance metrics included an Efficiency Ratio of 55.7%, better than the average estimate of 57.6% [3] - The Net Interest Margin (GAAP) was reported at 2.7%, matching the average estimate [3] - Total Noninterest Income was $4.40 million, exceeding the average estimate of $3.96 million [3] Group 3 - ConnectOne's shares have returned +30.8% over the past month, contrasting with the Zacks S&P 500 composite's -0.3% change [4] - The stock currently holds a Zacks Rank 5 (Strong Sell), indicating potential underperformance relative to the broader market [4]

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 ...

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ENGLEWOOD CLIFFS, N.J., July 25, 2024 (GLOBE NEWSWIRE) -- ConnectOne Bancorp, Inc. (NASDAQ:CNOB) (the "Company" or "ConnectOne"), parent company of ConnectOne Bank (the "Bank"), today reported net income available to common stockholders of $17.5 million for the second quarter of 2024 compared with $15.7 million for the first quarter of 2024 and $19.9 million for the second quarter of 2023. Diluted earnings per share were $0.46 for the second quarter of 2024 compared with $0.41 for the first quarter of 2024 ...

ENGLEWOOD CLIFFS, N.J., June 11, 2024 (GLOBE NEWSWIRE) -- ConnectOne Bank ("ConnectOne"), the wholly-owned depository subsidiary of ConnectOne Bancorp, Inc. (NASDAQ:CNOB), today announces the addition of seasoned financial services consultant Susan O'Donnell to its Board of Directors to deepen its bench of industry leaders from the financial services and banking industries. "Susan brings a strategic mindset to our board having advised banks and financial institutions over a 30-year career," said Frank Sorre ...

[PART I – FINANCIAL INFORMATION](index=3&type=section&id=PART%20I%20%E2%80%93%20FINANCIAL%20INFORMATION) [Financial Statements](index=3&type=section&id=Item%201.%20Financial%20Statements) This section presents the unaudited consolidated financial statements for ConnectOne Bancorp, Inc. as of March 31, 2024, and for the three months then ended [Consolidated Statements of Condition](index=3&type=section&id=Consolidated%20Statements%20of%20Condition) As of March 31, 2024, total assets were approximately $9.85 billion, remaining stable compared to December 31, 2023 Consolidated Statements of Condition (in thousands) | Account | March 31, 2024 | December 31, 2023 | | :--- | :--- | :--- | | **Assets** | | | | Cash and cash equivalents | $277,583 | $242,714 | | Net loans receivable | $8,215,088 | $8,263,171 | | Investment securities | $619,397 | $617,162 | | **Total assets** | **$9,853,964** | **$9,855,603** | | **Liabilities & Equity** | | | | Total deposits | $7,588,654 | $7,536,202 | | Borrowings | $877,568 | $933,579 | | **Total liabilities** | **$8,637,355** | **$8,638,983** | | **Total stockholders' equity** | **$1,216,609** | **$1,216,620** | [Consolidated Statements of Income](index=4&type=section&id=Consolidated%20Statements%20of%20Income) For the three months ended March 31, 2024, net income was $17.2 million, a decrease from $24.9 million in the same period of 2023 Consolidated Statements of Income (in thousands, except per share data) | Metric | Three Months Ended March 31, 2024 | Three Months Ended March 31, 2023 | | :--- | :--- | :--- | | Net interest income | $60,300 | $67,084 | | Provision for credit losses | $4,000 | $1,000 | | Net interest income after provision | $56,300 | $66,084 | | Noninterest income | $3,848 | $2,792 | | Noninterest expenses | $37,065 | $34,870 | | **Net income** | **$17,205** | **$24,929** | | Net income available to common stockholders | $15,696 | $23,420 | | **Diluted EPS** | **$0.41** | **$0.59** | [Consolidated Statements of Comprehensive Income](index=5&type=section&id=Consolidated%20Statements%20of%20Comprehensive%20Income) Total comprehensive income for Q1 2024 was $14.2 million, down from $23.4 million in Q1 2023 Comprehensive Income (in thousands) | Component | Three Months Ended March 31, 2024 | Three Months Ended March 31, 2023 | | :--- | :--- | :--- | | Net income | $17,205 | $24,929 | | Other comprehensive loss | $(3,023) | $(1,498) | | **Total comprehensive income** | **$14,182** | **$23,431** | [Consolidated Statements of Changes in Stockholders' Equity](index=6&type=section&id=Consolidated%20Statements%20of%20Changes%20in%20Stockholders%27%20Equity) Stockholders' equity remained stable at approximately $1.217 billion from December 31, 2023, to March 31, 2024 - Key activities affecting stockholders' equity in Q1 2024 included: net income of **$17.2 million**, common stock dividends of **$6.5 million**, preferred stock dividends of **$1.5 million**, and treasury stock repurchases of **$5.8 million**[53](index=53&type=chunk) [Consolidated Statements of Cash Flows](index=7&type=section&id=Consolidated%20Statements%20of%20Cash%20Flows) For the first three months of 2024, cash and cash equivalents increased by $34.9 million Cash Flow Summary (in thousands) | Activity | Three Months Ended March 31, 2024 | Three Months Ended March 31, 2023 | | :--- | :--- | :--- | | Net cash provided by operating activities | $20,522 | $16,374 | | Net cash provided by (used in) investing activities | $33,073 | $(26,556) | | Net cash (used in) provided by financing activities | $(18,726) | $304,283 | | **Net change in cash and cash equivalents** | **$34,869** | **$294,101** | [Notes to Consolidated Financial Statements](index=9&type=section&id=Notes%20to%20Consolidated%20Financial%20Statements) This section provides detailed disclosures on accounting policies, financial statement components, and risk management - The Company adopted ASU 2022-03 regarding fair value measurement of equity securities on January 1, 2024, which did not have a material effect[60](index=60&type=chunk) - The Company is managed as a single operating segment: a community bank[85](index=85&type=chunk) [Management's Discussion and Analysis of Financial Condition and Results of Operations](index=41&type=section&id=Item%202.%20Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management discusses the financial results for Q1 2024, highlighting a decrease in net income to $15.7 million from $23.4 million in Q1 2023 [Operating Results Overview](index=43&type=section&id=Operating%20Results%20Overview) Net income available to common stockholders for Q1 2024 was $15.7 million ($0.41 per diluted share), a significant decrease from $23.4 million ($0.59 per diluted share) in Q1 2023 - The **$7.7 million** decrease in net income available to common stockholders was driven by lower net interest income, higher provision for credit losses, and increased noninterest expenses, partially offset by lower income tax expense[196](index=196&type=chunk) [Net Interest Income and Margin](index=43&type=section&id=Net%20Interest%20Income%20and%20Margin) Fully taxable equivalent net interest income decreased by 9.9% to $61.1 million in Q1 2024 from $67.8 million in Q1 2023 Net Interest Margin Analysis | Metric | Q1 2024 | Q1 2023 | | :--- | :--- | :--- | | Net Interest Income (Tax-Equivalent, in thousands) | $61,111 | $67,828 | | Average Interest-Earning Assets (in thousands) | $9,323,291 | $9,174,167 | | **Net Interest Margin** | **2.64%** | **3.00%** | | Yield on Interest-Earning Assets | 5.63% | 5.17% | | Cost of Interest-Bearing Liabilities | 3.82% | 2.85% | [Financial Condition](index=46&type=section&id=Financial%20Condition) As of March 31, 2024, total gross loans decreased slightly by 0.6% to $8.3 billion from year-end 2023 Loan Portfolio Composition (in thousands) | Loan Segment | March 31, 2024 | Percent of Total | | :--- | :--- | :--- | | Commercial | $1,572,494 | 18.9% | | Commercial real estate | $5,829,950 | 70.2% | | Commercial construction | $646,593 | 7.8% | | Residential real estate | $254,214 | 3.1% | | **Gross loans** | **$8,304,101** | **100.0%** | - The commercial real estate portfolio's largest components are Multifamily (**$2.5 billion**) and Nonowner-occupied (**$2.2 billion**), with overall LTV for the CRE portfolio at **56%**[228](index=228&type=chunk) [Asset Quality](index=49&type=section&id=Asset%20Quality) Asset quality metrics showed minor changes, with nonperforming assets decreasing to $47.4 million (0.48% of total assets) at March 31, 2024 Nonperforming Assets (in thousands) | Metric | March 31, 2024 | December 31, 2023 | | :--- | :--- | :--- | | Nonaccrual loans | $47,438 | $52,524 | | OREO | $0 | $0 | | **Total nonperforming assets** | **$47,438** | **$52,524** | | Nonperforming assets to total assets | 0.48% | 0.53% | - The allowance for credit losses (ACL) for loans was **$82.9 million** as of March 31, 2024, an increase of **$0.9 million** from December 31, 2023[231](index=231&type=chunk) - One commercial construction loan for **$23.6 million** was past due more than 90 days but still accruing interest, as it is well-secured with a loan-to-value of approximately **60%**[12](index=12&type=chunk)[262](index=262&type=chunk) [Liquidity and Capital Resources](index=53&type=section&id=Liquidity%20and%20Capital%20Resources) The Company maintained adequate liquidity, with liquid assets at $706.2 million (7.2% of total assets), and remains well-capitalized - As of March 31, 2024, the Company had aggregate available and unused credit of approximately **$3.2 billion** from sources including the FHLB and Federal Reserve[246](index=246&type=chunk) - Total deposits increased by **$53 million** (**0.7%**) to **$7.6 billion** in Q1 2024, driven by increases in time, savings, and noninterest-bearing demand deposits[305](index=305&type=chunk) Company Capital Ratios (March 31, 2024) | Ratio | Actual | Minimum for Adequacy | | :--- | :--- | :--- | | Tier 1 leverage capital | 10.73% | 4.00% | | CET I risk-based ratio | 10.70% | 4.50% | | Tier 1 risk-based capital | 12.03% | 6.00% | | Total risk-based capital | 13.88% | 8.00% | - Both the Company and the Bank satisfy the capital conservation buffer requirements, with the lowest ratio for the Company being the Total Risk Based Capital Ratio, which was **3.38%** above the minimum buffer ratio[2](index=2&type=chunk) [Qualitative and Quantitative Disclosures about Market Risks](index=58&type=section&id=Item%203.%20Qualitative%20and%20Quantitative%20Disclosures%20about%20Market%20Risks) The Company's primary market risk is interest rate risk, measured using NII simulation and EVE models Interest Rate Sensitivity Analysis (as of March 31, 2024) | Rate Shock (bps) | Estimated Change in EVE | Estimated Change in 1-Year NII | | :--- | :--- | :--- | | +200 | -12.46% | -6.38% | | +100 | -5.55% | -2.71% | | -100 | +4.44% | +2.66% | - The change in interest rate sensitivity was impacted by changes in market rates, model assumption updates, and a deposit mix shift into certificates of deposit[269](index=269&type=chunk) [Controls and Procedures](index=58&type=section&id=Item%204.%20Controls%20and%20Procedures) Management, including the CEO and CFO, evaluated the company's disclosure controls and procedures and concluded they are effective - The CEO and CFO concluded that the Company's disclosure controls and procedures are effective[316](index=316&type=chunk) - No changes occurred in the Company's internal controls over financial reporting during the last fiscal quarter that have materially affected, or are reasonably likely to materially affect, these controls[4](index=4&type=chunk) [PART II – OTHER INFORMATION](index=59&type=section&id=PART%20II%20%E2%80%93%20OTHER%20INFORMATION) [Legal Proceedings](index=59&type=section&id=Item%201.%20Legal%20Proceedings) The Company reports that it is not subject to any legal proceedings that could have a materially adverse impact on its results of operations and financial condition - The Company is not subject to any legal proceedings which could have a materially adverse impact on its financial condition or results of operations[317](index=317&type=chunk) [Risk Factors](index=59&type=section&id=Item%201a.%20Risk%20Factors) The Company states that there have been no material changes to the risks inherent in its business from those described in its Annual Report on Form 10-K for the year ended December 31, 2023 - There have been no material changes to the risk factors from those described in the 2023 Annual Report on Form 10-K[318](index=318&type=chunk) [Unregistered Sales of Equity Securities and Use of Proceeds](index=59&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) During the quarter ended March 31, 2024, the Company repurchased a total of 282,370 shares of its common stock at an average price of approximately $20.28 per share Share Repurchases for Q1 2024 | Period | Total Shares Purchased | Average Price Paid per Share | | :--- | :--- | :--- | | Feb 1 - Feb 29, 2024 | 207,370 | $20.56 | | Mar 1 - Mar 31, 2024 | 75,000 | $19.66 | | **Total Q1 2024** | **282,370** | **-** | - As of March 31, 2024, **641,118 shares** remained available for repurchase under the company's program[361](index=361&type=chunk) [Exhibits](index=60&type=section&id=Item%206.%20Exhibits) This section lists the exhibits filed with the report, including CEO and CFO certifications pursuant to the Sarbanes-Oxley Act and Inline XBRL documents - The report includes CEO and CFO certifications under Sections 302 and 906 of the Sarbanes-Oxley Act, as well as various Inline XBRL files[352](index=352&type=chunk)

ConnectOne Bancorp, Inc. (NASDAQ:CNOB) Q1 2024 Earnings Conference Call April 25, 2024 10:00 AM ET Company Participants Siya Vansia - Chief Brand and Innovation Officer Frank Sorrentino - Chairman and CEO William Burns - SEVP and CFO Conference Call Participants Daniel Tamayo - Raymond James Frank Schiraldi - Piper Sandler Tim Switzer - KBW Matthew Breese - Stephens Operator Thank you for standing by. My name is Marvilou and I will be your conference operator today. At this time, I would like to welcome eve ...

For the quarter ended March 2024, ConnectOne Bancorp (CNOB) reported revenue of $64.15 million, down 8.2% over the same period last year. EPS came in at $0.41, compared to $0.59 in the year-ago quarter.The reported revenue represents a surprise of +0.34% over the Zacks Consensus Estimate of $63.93 million. With the consensus EPS estimate being $0.42, the EPS surprise was -2.38%.While investors closely watch year-over-year changes in headline numbers -- revenue and earnings -- and how they compare to Wall St ...