PART I [Item 1. Business](index=4&type=section&id=Item%201.%20Business) ConnectOne Bancorp, Inc. operates as a bank holding company through ConnectOne Bank, serving the New York metro area and South Florida - **ConnectOne Bancorp, Inc.** is a one-bank holding company operating primarily through its subsidiary, **ConnectOne Bank**, with over **$9.856 billion** in **assets**[146](index=146&type=chunk)[210](index=210&type=chunk) - The company has grown through **strategic mergers**, including with Legacy ConnectOne in **2014**, Greater Hudson Bank in **2019**, and Bancorp of New Jersey in **2020**[147](index=147&type=chunk)[148](index=148&type=chunk)[41](index=41&type=chunk) - The bank operates a **"branch-lite" model**, leveraging technology to serve clients efficiently across the New York metro area and a new office in West Palm Beach, Florida[236](index=236&type=chunk)[238](index=238&type=chunk) - **BoeFly**, a wholly-owned subsidiary, is a **fintech marketplace** connecting franchise borrowers with a network of partner banks[237](index=237&type=chunk)[46](index=46&type=chunk) [Products and Services](index=6&type=section&id=Products%20and%20Services) The company's primary revenue is net interest income from diverse loan and deposit products for consumer and business clients - The company's primary **revenue source** is **net interest income**, derived from a comprehensive suite of **deposit** and **loan products** for consumer and business clients[213](index=213&type=chunk) - **Loan offerings** include **commercial and industrial loans**, **commercial real estate**, **construction loans**, **residential mortgages**, and **home equity loans** The bank is not involved in the **sub-prime lending market**[241](index=241&type=chunk)[242](index=242&type=chunk)[215](index=215&type=chunk) - **Deposit products** include various checking, savings, money market, and time deposit accounts The bank also participates in the **IntraFi Network (CDARS/ICS)** to provide clients with extended **FDIC insurance coverage** on large deposits[240](index=240&type=chunk) - As of **December 31, 2023**, the Bank's **legal lending limit** to a single borrower is **$168.2 million** for most loans, with its **largest committed relationship** being **$173.6 million**[244](index=244&type=chunk) [Human Capital](index=8&type=section&id=Human%20Capital) The company employs 487 full-time and 12 part-time staff, fostering development through ConnectOne University and DEI initiatives - As of **December 31, 2023**, the company employed **487 full-time** and **12 part-time/temporary employees**, none of whom are represented by a **collective bargaining unit**[221](index=221&type=chunk) - The company fosters employee development through its **ConnectOne University program**, which includes **training**, **leadership development**, **continuing education**, and **mentorship** In **2023**, **289 employees** participated in these programs[222](index=222&type=chunk)[249](index=249&type=chunk) - In **2022**, the company appointed its first **Chief Diversity, Equity & Inclusion Officer** and established its first **Employee Resource Group**, **WomenConnect**, in **January 2023**[248](index=248&type=chunk) - The company focuses on **internal promotion**, with **58 employees** promoted into new roles in **2023**[225](index=225&type=chunk) [Supervision and Regulation](index=10&type=section&id=Supervision%20and%20Regulation) The company is a bank holding company supervised by the FRB, subject to Dodd-Frank, Basel III capital rules, and FDIC assessments - The company is a **bank holding company** supervised by the **Federal Reserve Board (FRB)** and is subject to the **Bank Holding Company Act of 1956**[278](index=278&type=chunk)[254](index=254&type=chunk) - The **Dodd-Frank Act** has a **significant impact** on the company, mandating changes in **capital requirements**, **deposit insurance assessments** (now based on average assets less tangible equity), and **consumer protection regulations** via the **Consumer Financial Protection Bureau (CFPB)**[281](index=281&type=chunk)[258](index=258&type=chunk)[282](index=282&type=chunk) - The company and the Bank are subject to **Basel III capital rules**, requiring a minimum **Common Equity Tier 1 (CET1) ratio** of **4.5%**, **Tier 1 Capital ratio** of **6.0%**, and **Total Capital ratio** of **8.0%**, plus a **2.5% capital conservation buffer**[267](index=267&type=chunk)[292](index=292&type=chunk)[268](index=268&type=chunk) - The **FDIC** implemented a **special assessment** to recover losses from the **2023 bank failures** The company accrued **$2.1 million** as of **December 31, 2023**, related to this **assessment**[298](index=298&type=chunk)[322](index=322&type=chunk) [Item 1A. Risk Factors](index=20&type=section&id=Item%201A.%20Risk%20Factors) The company faces key risks from commercial real estate loan concentration, competition, liquidity, interest rates, and regulatory changes - The company has a **significant concentration** in **commercial real estate loans**, totaling **$6.5 billion** (**78.1%** of **loans receivable**) as of **December 31, 2023** This represents **463%** of the Bank's **Tier 1 capital** plus the **allowance for credit losses**, exceeding **regulatory guidance levels** and requiring **heightened risk management**[336](index=336&type=chunk)[337](index=337&type=chunk)[368](index=368&type=chunk) - The company faces **substantial competition** in both **lending and deposit-gathering** from **larger banks**, non-bank entities, and **fintech companies**, which could **compress margins** and **reduce market share**[345](index=345&type=chunk)[376](index=376&type=chunk)[348](index=348&type=chunk) - As the company's **total assets** of **$9.856 billion** approach the **$10 billion threshold**, it will be subject to **heightened regulatory requirements**, including **increased FDIC premiums**, **reduced debit card interchange fees**, and direct examination by the **Consumer Financial Protection Bureau (CFPB)**[359](index=359&type=chunk)[418](index=418&type=chunk) - Recent **failures of other banks** and the **Federal Reserve's quantitative tightening** have increased **market volatility**, **competition for deposits**, and the risk of an **economic recession**, which could adversely impact the company's **stock price** and **operating results**[360](index=360&type=chunk)[391](index=391&type=chunk) - Changes in **interest rates** and **Federal Reserve monetary policy**, including **quantitative tightening**, pose a **significant risk** to the company's **net interest income** and **financial condition**[421](index=421&type=chunk)[395](index=395&type=chunk) [Item 1B. Unresolved Staff Comments](index=29&type=section&id=Item%201B.%20Unresolved%20Staff%20Comments) The company reports no unresolved staff comments from the SEC - There are no **unresolved staff comments**[402](index=402&type=chunk) [Item 1C. Cybersecurity](index=30&type=section&id=Item%201C.%20Cybersecurity) The company manages cybersecurity as a material risk through its IT Committee, reporting to the ERMC and Board Audit and Risk Committee - **Cybersecurity risk** is managed by the **management IT Committee (ITC)**, which includes the **Chief Compliance Officer**, **Chief Technology Officer**, and **Chief Risk Officer**, among others[403](index=403&type=chunk)[453](index=453&type=chunk)[404](index=404&type=chunk) - The **ITC** reports to the **Enterprise Risk Management Committee (ERMC)**, which provides quarterly updates to the **Board Audit and Risk Committee**, integrating **cybersecurity** into the company's overall **risk management framework**[407](index=407&type=chunk) - The company's **risk mitigation program** utilizes **internal teams** for monthly **vulnerability scanning** and annual **risk assessments**, and engages **third-party vendors** for **penetration testing** and **internal audits** of the **cybersecurity program**[456](index=456&type=chunk)[434](index=434&type=chunk) [Item 2. Properties](index=32&type=section&id=Item%202.%20Properties) The company's principal office is leased in Englewood Cliffs, NJ, with other leased banking offices across NJ, NY, and FL - The Bank's **principal office** is located at **301 Sylvan Avenue, Englewood Cliffs, NJ**, in a **leased building**[458](index=458&type=chunk) Leased Operating Locations | Banking Office Location | Term | | :--- | :--- | | 301 Sylvan Avenue, Englewood Cliffs, NJ | Term expires November 2028 | | 1 Union Ave, Cresskill, NJ | Term expires January 2038 | | 142 John Street, Hackensack, NJ | Term expires December 2026 | | 551 Madison Avenue, Suite 201, NY, NY | Term expires May 2032 | | 625 N Flagler Dr Ste 1002, West Palm Beach, FL | Term expires June 2027 | [Item 3. Legal Proceedings](index=32&type=section&id=Item%203.%20Legal%20Proceedings) The company is not involved in any significant pending legal proceedings outside of routine operations, with no material adverse effects expected - There are no **significant pending legal proceedings** involving the Company other than those arising out of **routine operations**[437](index=437&type=chunk) PART II [Item 5. Market for Registrant's Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities](index=33&type=section&id=Item%205.%20Market%20for%20Registrant%27s%20Common%20Equity%2C%20Related%20Stockholder%20Matters%20and%20Issuer%20Purchases%20of%20Equity%20Securities) The company's common stock trades on NASDAQ under "CNOB"; in 2023, it repurchased shares, with remaining authorization - The company's **common stock** is traded on the **NASDAQ Global Select Market** under the symbol **"CNOB"**[460](index=460&type=chunk) - In **September 2021**, the Board authorized a **share repurchase program** for up to **2,000,000 shares** During the year ended **December 31, 2023**, the Company repurchased **904,152 shares**[440](index=440&type=chunk) - As of **December 31, 2023**, **933,488 shares remained available for repurchase** under the existing program[440](index=440&type=chunk) [Item 7. Management's Discussion and Analysis of Financial Condition and Results of Operations](index=36&type=section&id=Item%207.%20Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Net income decreased in 2023 due to lower net interest income and higher noninterest expenses, partially offset by reduced credit loss provisions 2023 vs. 2022 Performance Summary | Metric | 2023 | 2022 | Change | Change (%) | | :--- | :--- | :--- | :--- | :--- | | Net Income to Common Stockholders | $81.0M | $119.2M | ($38.2M) | (32.1%) | | Diluted EPS | $2.07 | $3.01 | ($0.94) | (31.2%) | | Net Interest Income | $255.1M | $302.1M | ($47.0M) | (15.6%) | | Provision for Credit Losses | $8.2M | $17.8M | ($9.6M) | (54.1%) | | Noninterest Expense | $143.9M | $126.4M | $17.5M | 13.8% | - The **allowance for credit losses (ACL)** for loans decreased by **$8.5 million** to **$82.0 million** at year-end **2023**, primarily due to **$17.0 million** in **net charge-offs**, partially offset by an **$8.4 million provision for credit losses**[446](index=446&type=chunk) - **Total assets** increased by **$0.2 billion** to **$9.856 billion** as of **December 31, 2023** **Total loans** grew by **$0.2 billion** to **$8.3 billion**, and **deposits** increased by **$0.2 billion** to **$7.5 billion**[493](index=493&type=chunk) [Net Interest Income](index=39&type=section&id=Net%20Interest%20Income) Fully taxable equivalent net interest income decreased in 2023 due to net interest margin contraction, despite increased average interest-earning assets - Fully taxable equivalent **net interest income** for **2023** was **$258.3 million**, a **15.2% decrease** from **2022** This was caused by an **87 basis-point contraction** in the **net interest margin** to **2.82%**, which was partially offset by an **11.0% increase** in **average interest-earning assets**[482](index=482&type=chunk) - The **net interest margin contraction** was driven by a **199-basis point increase** in the **average cost of deposits** to **2.74%**, while the **loan portfolio yield** increased by only **77 basis points** to **5.57%**[482](index=482&type=chunk) [Provision for Credit Losses](index=41&type=section&id=Provision%20for%20Credit%20Losses) The provision for credit losses decreased in 2023 due to macroeconomic forecast changes, partially offset by organic loan growth - The **provision for credit losses** was **$8.2 million** in **2023**, a decrease of **$9.6 million** from **$17.8 million** in **2022** The decrease reflected changes in **forecasted macroeconomic conditions**, partially offset by **organic loan growth**[488](index=488&type=chunk) - In **2022**, the **provision** was **$17.8 million**, a **significant increase** from a reversal of (**$5.5**) **million** in **2021**, reflecting strong **loan growth** and changes in **macroeconomic forecasts** at that time[203](index=203&type=chunk) [Noninterest Income and Expense](index=42&type=section&id=Noninterest%20Income%20and%20Expense) Noninterest income increased slightly in 2023, while noninterest expense rose significantly due to salaries, FDIC insurance, and technology costs - **Noninterest income** increased by **$0.7 million** (**5.7%**) to **$14.0 million** in **2023**, mainly due to a **$1.4 million decrease** in **net losses on equity securities** and a **$0.7 million increase** in **income on bank-owned life insurance**[489](index=489&type=chunk) - **Noninterest expense** rose by **$17.6 million** in **2023**, driven by a **$7.0 million increase** in **salaries and benefits**, a **$5.5 million increase** in **FDIC insurance** (including a **$2.1 million special assessment**), and a **$3.2 million increase** in **technology costs**[490](index=490&type=chunk) [Loan Portfolio](index=43&type=section&id=Loan%20Portfolio) Commercial real estate loans remain the largest portfolio component, while nonperforming assets and the allowance for credit losses saw changes Loan Portfolio Composition (in thousands) | Loan Type | Dec 31, 2023 | Dec 31, 2022 | | :--- | :--- | :--- | | Commercial | $1,578,730 | $1,472,734 | | Commercial real estate | $5,895,545 | $5,795,228 | | Commercial construction | $620,496 | $574,139 | | Residential real estate | $256,041 | $264,748 | | Consumer | $1,029 | $2,312 | | **Gross loans** | **$8,351,841** | **$8,109,161** | - **Commercial real estate loans** are the **largest portfolio component**, increasing by **$100 million** (**1.7%**) in **2023** to **$5.9 billion**[523](index=523&type=chunk) - **Nonperforming assets (nonaccrual loans and OREO)** were **$52.5 million**, or **0.53%** of **total assets**, as of **December 31, 2023**, compared to **$44.7 million**, or **0.46%** of **total assets**, a year prior[536](index=536&type=chunk)[563](index=563&type=chunk) - The **allowance for credit losses for loans** as a percentage of **loans receivable** was **0.98%** as of **December 31, 2023**, down from **1.12%** as of **December 31, 2022**[566](index=566&type=chunk) [Liquidity and Capital Resources](index=57&type=section&id=Liquidity%20and%20Capital%20Resources) Deposits increased in 2023, driven by interest-bearing accounts, with significant use of reciprocal deposits and substantial available credit lines - **Deposits**, the **primary source of funds**, increased by **$180 million** to **$7.5 billion** in **2023** The growth was driven by **interest-bearing demand**, time, and **savings deposits**, which offset a **$242 million decrease** in **noninterest-bearing deposits**[584](index=584&type=chunk)[589](index=589&type=chunk) - The company significantly increased its use of **reciprocal deposits** through the **IntraFi Network**, with **ICS deposits** growing to **$1.1 billion** and **CDARS** to **$96 million** by year-end **2023**, driven by client demand for **expanded FDIC insurance**[618](index=618&type=chunk)[192](index=192&type=chunk) - As of **December 31, 2023**, the company had **aggregate available and unused credit** of approximately **$3.3 billion** from sources including the **FHLB** and **Federal Reserve**[582](index=582&type=chunk) Company Capital Ratios (Dec 31, 2023) | Ratio | Actual | Minimum Requirement | | :--- | :--- | :--- | | CET 1 | 10.62% | 4.50% | | Tier 1 | 11.95% | 6.00% | | Total Risk-Based | 13.77% | 8.00% | | Leverage (Tier 1) | 10.86% | 4.00% | [Item 8. Financial Statements and Supplementary Data](index=66&type=section&id=Item%208.%20Financial%20Statements%20and%20Supplementary%20Data) This section presents the consolidated financial statements, including the independent auditor's report, covering financial condition, operations, and cash flows - The **independent auditor, Crowe LLP**, issued an **unqualified opinion** on the **financial statements** and the **effectiveness of internal control over financial reporting** as of **December 31, 2023**[629](index=629&type=chunk)[651](index=651&type=chunk) - The auditor identified the **qualitative component** of the **Allowance for Credit Losses (ACL)** on **commercial** and **commercial real estate loans** as a **critical audit matter** due to the **subjective judgments** involved[634](index=634&type=chunk)[657](index=657&type=chunk) [Notes to Consolidated Financial Statements](index=75&type=section&id=Notes%20to%20Consolidated%20Financial%20Statements) The notes detail the company's accounting policies, including ACL, investment securities, derivatives, and goodwill, along with balance sheet and income statement accounts [Note 1 – Summary of Significant Accounting Policies](index=75&type=section&id=Note%201%20%E2%80%93%20Summary%20of%20Significant%20Accounting%20Policies) The company adopted the CECL methodology for allowance for credit losses, and goodwill is tested for impairment annually - The company adopted the **CECL (Current Expected Credit Loss) methodology** for its **allowance for credit losses** on **January 1, 2021** The **allowance** is an estimate of **lifetime expected credit losses** based on **historical experience**, **current conditions**, and **reasonable forecasts**[679](index=679&type=chunk)[316](index=316&type=chunk) - The **allowance methodology** involves both a **collective (pooled) component** for loans with similar risk characteristics and an **individual component** for loans that do not share common risks, such as **nonaccrual loans** over **$250,000** and all **PCD loans**[732](index=732&type=chunk)[710](index=710&type=chunk) - **Goodwill is not amortized** but is tested for **impairment annually** as of **December 31**, or more frequently if **impairment indicators** exist **No impairment charge was recorded** for **2023**, **2022**, or **2021**[12](index=12&type=chunk) - The company adopted **ASU 2022-02** on **January 1, 2023**, which eliminated the **accounting guidance for troubled debt restructurings (TDRs)** and enhanced **disclosures for loan modifications to borrowers in financial difficulty**[725](index=725&type=chunk)[69](index=69&type=chunk) [Note 2 – Earnings per Common Share](index=86&type=section&id=Note%202%20%E2%80%93%20Earnings%20per%20Common%20Share) This note provides detailed calculations for basic and diluted earnings per common share for the reported periods Earnings Per Common Share | Metric | 2023 | 2022 | 2021 | | :--- | :--- | :--- | :--- | | Net income available to common stockholders | $80,967 | $119,174 | $128,636 | | Weighted average common shares outstanding | 38,809 | 39,260 | 39,626 | | Weighted average common and equivalent shares outstanding | 38,962 | 39,476 | 39,886 | | **Basic EPS** | **$2.08** | **$3.03** | **$3.24** | | **Diluted EPS** | **$2.07** | **$3.01** | **$3.22** | [Note 3 – Investment Securities](index=87&type=section&id=Note%203%20%E2%80%93%20Investment%20Securities) This note details the composition and fair value of the company's investment securities, primarily available-for-sale Investment Securities Available-for-Sale (in thousands) | Category | Amortized Cost (2023) | Fair Value (2023) | Fair Value (2022) | | :--- | :--- | :--- | :--- | | Federal agency obligations | $55,898 | $45,326 | $44,450 | | Residential mortgage pass-through | $462,004 | $411,191 | $417,578 | | Obligations of U.S. states | $148,795 | $132,705 | $142,896 | | Other | $31,665 | $27,940 | $29,960 | | **Total** | **$698,362** | **$617,162** | **$634,884** | - As of **December 31, 2023**, the **investment portfolio** had **gross unrealized losses** of **$82.4 million** and **gross unrealized gains** of **$1.2 million**[728](index=728&type=chunk) - **No allowance for credit losses for available-for-sale securities was recorded** as of **December 31, 2023** The company determined that **unrealized losses** were primarily due to changes in **interest rates** and not **credit-related issues**[52](index=52&type=chunk)[53](index=53&type=chunk) [Note 4 – Loans and the Allowance for Credit Losses](index=91&type=section&id=Note%204%20%E2%80%93%20Loans%20and%20the%20Allowance%20for%20Credit%20Losses) This note details the loan portfolio composition, nonaccrual loans, and activity in the allowance for credit losses Allowance for Credit Losses Activity (in thousands) | | 2023 | 2022 | 2021 | | :--- | :--- | :--- | :--- | | **Balance, Beginning of Period** | **$90,513** | **$78,773** | **$85,783** | | Charge-offs | (17,049) | (5,443) | (2,397) | | Recoveries | 86 | 117 | 405 | | Provision for credit losses | 8,424 | 17,066 | (5,018) | | **Balance, End of Period** | **$81,974** | **$90,513** | **$78,773** | - **Nonaccrual loans** increased to **$52.5 million** as of **December 31, 2023**, from **$44.5 million** as of **December 31, 2022**[762](index=762&type=chunk) - As of **December 31, 2023**, the company had **modified $17.8 million** in **loans to borrowers experiencing financial difficulty**, primarily through **payment deferrals** and **term extensions**[101](index=101&type=chunk) [Note 6 – Goodwill and Other Intangible Assets](index=105&type=section&id=Note%206%20%E2%80%93%20Goodwill%20and%20Other%20Intangible%20Assets) This note details the company's goodwill and other intangible assets, including impairment testing and amortization expense - **Goodwill remained unchanged** at **$208.4 million** for **2023** and **2022** The company performed a **quantitative impairment analysis** as of **December 31, 2023**, and concluded that **goodwill was not impaired**[78](index=78&type=chunk)[77](index=77&type=chunk) - **Aggregate amortization expense** for **other intangible assets** (primarily **core deposit intangibles**) was **$1.4 million** in **2023**, **$1.7 million** in **2022**, and **$2.0 million** in **2021**[110](index=110&type=chunk) [Note 9 – Subordinated Debentures](index=108&type=section&id=Note%209%20%E2%80%93%20Subordinated%20Debentures) This note details the company's outstanding subordinated debentures and capital securities, including redemption and interest rates - In **February 2023**, the company redeemed in full its **$75 million aggregate principal amount** of **fixed-to-floating rate subordinated notes** issued in **2018** (the **"2018 Notes"**)[625](index=625&type=chunk)[848](index=848&type=chunk) - The company has **$75 million** in **fixed-to-floating rate subordinated notes** issued in **2020** (the **"2020 Notes"**) outstanding, which bear a **fixed interest rate** of **5.75%** until **June 2025**[115](index=115&type=chunk) - The company's **$5.0 million** of **MMCapS capital securities**, issued in **2003**, converted from a **LIBOR-based index** to a **SOFR-based index** effective **June 30, 2023** The rate as of **December 31, 2023** was **8.50%**[83](index=83&type=chunk)[645](index=645&type=chunk) [Note 14 – Stockholders' Equity and Regulatory Requirements](index=113&type=section&id=Note%2014%20%E2%80%93%20Stockholders%27%20Equity%20and%20Regulatory%20Requirements) This note details the company's stockholders' equity and regulatory capital ratios, confirming its well-capitalized status - As of **December 31, 2023**, both the Company and the Bank were categorized as **well-capitalized** and satisfied all **capital adequacy requirements**, including the **capital conservation buffer**[92](index=92&type=chunk)[125](index=125&type=chunk) The Bank - Regulatory Capital Ratios (Dec 31, 2023) | Ratio | Actual | Minimum for Adequacy | Minimum to be Well Capitalized | | :--- | :--- | :--- | :--- | | CET 1 | 12.31% | 4.50% | 6.50% | | Tier 1 | 12.31% | 6.00% | 8.00% | | Total | 13.28% | 8.00% | 10.00% | | Leverage (Tier 1) | 11.20% | 4.00% | 5.00% | [Note 16 – Pension and Other Benefits](index=116&type=section&id=Note%2016%20%E2%80%93%20Pension%20and%20Other%20Benefits) This note details the company's defined benefit pension plan, 401(k) plan, and supplemental executive retirement plans - The company maintains a **frozen, noncontributory defined benefit pension plan** As of **December 31, 2023**, the **plan was overfunded**, with a **fair value of plan assets** of **$14.6 million** and a **projected benefit obligation** of **$9.3 million**[127](index=127&type=chunk)[156](index=156&type=chunk) - The company also maintains a **401(k) plan** with a **100% match** on **employee contributions** up to **5%** **Employer contributions** to the **401(k) plan** amounted to **$2.6 million** in **2023**, **$2.2 million** in **2022**, and **$1.6 million** in **2021**[135](index=135&type=chunk) - **Supplemental executive retirement plans (SERPs)** are in place for several executive officers, with **compensation expense** of **$0.4 million** in **2023**, **$1.4 million** in **2022**, and **$1.0 million** in **2021**[165](index=165&type=chunk) [Note 19 – Derivatives](index=124&type=section&id=Note%2019%20%E2%80%93%20Derivatives) This note details the company's use of interest rate swaps and caps as cash flow hedges, including their fair values and impact on income - The company uses **interest rate swaps and caps** as **cash flow hedges** As of **December 31, 2023**, the **fair value of these derivative assets** was **$43.8 million**[141](index=141&type=chunk)[174](index=174&type=chunk) - The company has eleven **pay-fixed interest rate swaps** with a total **notional amount** of **$500 million** to hedge **FHLB advances**, and two **interest rate cap spread transactions** with a total **notional amount** of **$225 million** to hedge **brokered certificates of deposits**[903](index=903&type=chunk)[142](index=142&type=chunk) Gains (Losses) on Cash Flow Hedges (in thousands) | | 2023 | 2022 | | :--- | :--- | :--- | | Amount of gain (loss) recognized in OCI | $9,431 | $46,282 | | Amount of (gain) loss reclassified from OCI to interest expense | ($20,230) | ($3,343) | [Note 20 – Fair Value Measurements](index=126&type=section&id=Note%2020%20%E2%80%93%20Fair%20Value%20Measurements) This note details the company's fair value measurements, categorized by a three-level hierarchy, for various assets and liabilities - The company uses a **three-level hierarchy for fair value measurements**: **Level 1** (quoted prices for identical assets), **Level 2** (observable inputs), and **Level 3** (unobservable inputs)[197](index=197&type=chunk)[176](index=176&type=chunk)[907](index=907&type=chunk) - As of **December 31, 2023**, of the **$679.5 million** in **assets measured at fair value on a recurring basis**, **$10.0 million** were **Level 1**, **$662.4 million** were **Level 2**, and **$7.1 million** were **Level 3**[930](index=930&type=chunk) - The **fair value of the net loan portfolio** was estimated at **$8.00 billion**, compared to a **carrying amount** of **$8.26 billion** as of **December 31, 2023** This is a **Level 3 estimate** based on a **discounted cash flow analysis**[939](index=939&type=chunk)[942](index=942&type=chunk) [Item 9A. Controls and Procedures](index=138&type=section&id=Item%209A.%20Controls%20and%20Procedures) Management and the independent auditor concluded that disclosure controls and internal control over financial reporting were effective - Management concluded that the Company's **disclosure controls and procedures were effective** as of **December 31, 2023**[1014](index=1014&type=chunk) - Based on an assessment using the **COSO framework**, management determined that the Company's **internal control over financial reporting was effective** as of **December 31, 2023**[996](index=996&type=chunk)[973](index=973&type=chunk) - There were **no changes** in **internal controls over financial reporting** during the fourth fiscal quarter that materially affected, or are reasonably likely to materially affect, these controls[997](index=997&type=chunk) PART III [Items 10-14](index=140&type=section&id=Items%2010-14) Information for Items 10-14, covering governance, compensation, and related matters, is incorporated by reference from the 2024 Proxy Statement - Information for **Items 10 through 14** is **incorporated by reference** from the company's **definitive Proxy Statement** for its **2024 Annual Meeting**, expected to be filed by **April 29, 2024**[976](index=976&type=chunk)[977](index=977&type=chunk)[978](index=978&type=chunk) PART IV [Item 15. Exhibits, Financial Statement Schedules](index=141&type=section&id=Item%2015.%20Exhibits%2C%20Financial%20Statement%20Schedules) This section lists the financial statements and exhibits filed with the annual report; all financial statement schedules are omitted - This section lists the **financial statements** and **exhibits** filed with the **annual report** All **financial statement schedules** have been omitted because the required information is included elsewhere in the report[981](index=981&type=chunk)[984](index=984&type=chunk)

ConnectOne Bancorp, Inc. (NASDAQ:CNOB) Q4 2023 Earnings Conference Call January 25, 2024 10:00 AM ET Company Participants Siya Vansia – Chief Brand and Innovation Officer Frank Sorrentino – Chairman and Chief Executive Officer Bill Burns – Senior Executive Vice President and Chief Financial Officer Conference Call Participants Daniel Tamayo – Raymond James Frank Schiraldi – Piper Sandler Michael Perito – KBW Nick Cucharale – Hovde Group Matthew Breese – Stephens Operator Hello. And thank you for standing by ...

ConnectOne Bancorp (CNOB) reported $66.03 million in revenue for the quarter ended December 2023, representing a year-over-year decline of 19%. EPS of $0.50 for the same period compares to $0.79 a year ago.The reported revenue represents a surprise of +0.82% over the Zacks Consensus Estimate of $65.5 million. With the consensus EPS estimate being $0.47, the EPS surprise was +6.38%.While investors scrutinize revenue and earnings changes year-over-year and how they compare with Wall Street expectations to det ...

ENGLEWOOD CLIFFS, N.J., Jan. 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 $17.8 million for the fourth quarter of 2023 compared with $19.9 million for the third quarter of 2023 and $31.0 million for the fourth quarter of 2022. Diluted earnings per share were $0.46 for the fourth quarter of 2023 compared with $0.51 for the third quarter of 2023 ...

Analysts on Wall Street project that ConnectOne Bancorp (CNOB) will announce quarterly earnings of $0.47 per share in its forthcoming report, representing a decline of 40.5% year over year. Revenues are projected to reach $65.5 million, declining 19.7% from the same quarter last year.Over the last 30 days, there has been no revision in the consensus EPS estimate for the quarter. This signifies the covering analysts' collective reconsideration of their initial forecasts over the course of this timeframe.Befo ...

OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 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 September 30, 2023 (Address of Principal Executive Offices) (Zip Code) 201-816-8900 (Registrant's Telephone Number, Including Area Code) Securities registered pursuant to Sect ...

ConnectOne Bancorp, Inc. (NASDAQ:CNOB) Q3 2023 Results Conference Call October 26, 2023 10:00 AM ET Company Participants Siya Vansia - Chief Brand and Innovation Officer Frank Sorrentino - Chairman and CEO Bill Burns - Sr. EVP and CFO Conference Call Participants Nick Cucharale - Hovde Group Daniel Tamayo - Raymond James Frank Schiraldi - Piper Sandler Matthew Breese - Stephens Michael Perito - KBW Operator Hello and welcome to the ConnectOne Bancorp Incorporated Third Quarter 2023 Earnings Conference Call. ...

Table of Contents UNITED STATES OF AMERICA SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 CONNECTONE BANCORP, INC. (Exact Name of Registrant as Specified in Its Charter) New Jersey 52-1273725 (State or Other Jurisdiction of Incorporation or Organization) (IRS Employer Identification No.) 301 Sylvan Avenue Englewood Cliffs, New Jersey 07632 (Address of Principal Executive Offices) (Zip Code) 201-816-8900 (Registrant's Telephone Number, Including Area Code) Securities registered pursuant to Section ...

ConnectOne Bancorp, Inc. (NASDAQ:CNOB) Q2 2023 Earnings Conference Call July 27, 2023 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 Elizabeth Magennis - President of ConnectOne Bank Conference Call Participants Michael Perito - KBW Daniel Tamayo - Raymond James Frank Schiraldi - Piper Sandler Matthew Breese - Stephens Inc. Operator Good morni ...

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 March 31, 2023 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: 001-40751 CONNECTONE BANCORP, INC. (Exact Name of Registrant as Specified in Its Charter) New Jersey 5 ...