ConnectOne Bancorp, Inc. (NASDAQ:CNOB) Q1 2023 Earnings Conference Call April 27, 2023 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 Matthew Breese - Steven Operator Good morning and welcome to the ConnectOne Bancorp, Inc First Quarter 2023 Earnings Confer ...

Part I [Item 1. Business](index=5&type=section&id=Item%201.%20Business) ConnectOne Bancorp, Inc. is a $9.6 billion asset bank holding company serving the NY Metro and South Florida markets with a tech-driven, branch-lite model - ConnectOne Bancorp, Inc. is a modern financial services company with over **$9.6 billion** in assets, operating primarily through its bank subsidiary, ConnectOne Bank[78](index=78&type=chunk) - The company's primary business is serving small and mid-sized businesses, local professionals, and individuals in the New York Metropolitan area and the South Florida market through a high-tech, "branch-lite" model[8](index=8&type=chunk)[79](index=79&type=chunk) - Majority of revenue derived from net interest income[27](index=27&type=chunk) - **507** full-time and **8** part-time employees as of December 31, 2022[32](index=32&type=chunk) - Growth achieved through mergers and acquisitions, including Greater Hudson Bank (2019) and Bancorp of New Jersey, Inc. (2020)[6](index=6&type=chunk)[23](index=23&type=chunk) [Products and Services](index=6&type=section&id=Products%20and%20Services) The bank provides a comprehensive range of deposit and loan products, including commercial, real estate, and consumer loans, and participated in the PPP - Offers a full range of deposit products including checking, money market, savings, and time deposits[11](index=11&type=chunk)[27](index=27&type=chunk) - Provides diverse loan products including commercial, consumer, commercial and residential real estate, construction, and home equity loans[80](index=80&type=chunk)[81](index=81&type=chunk) - Participated in the SBA's Paycheck Protection Program (PPP) in 2020 and 2021, with **$11.4 million** in PPP loans outstanding as of December 31, 2022[30](index=30&type=chunk)[98](index=98&type=chunk) - Legal lending limit to any one borrower is **15%** of capital base (**$158.1 million**) for most loans and **25%** (**$263.5 million**) for loans secured by readily marketable collateral as of year-end 2022[99](index=99&type=chunk) [Supervision and Regulation](index=9&type=section&id=Supervision%20and%20Regulation) The company and its bank are extensively regulated by federal and state authorities, impacting capital, lending, and deposit insurance - Supervised by the Federal Reserve Board (FRB) as a bank holding company, subject to its reporting and examination requirements[49](index=49&type=chunk) - The Dodd-Frank Act of 2010 introduced enhanced capital requirements, established the CFPB, and permanently increased the FDIC deposit insurance limit to **$250,000**[36](index=36&type=chunk)[37](index=37&type=chunk)[87](index=87&type=chunk) - Required to maintain minimum Basel III capital ratios: **4.5%** CET1, **6.0%** Tier 1, and **8.0%** Total Capital, plus a **2.5%** capital conservation buffer[60](index=60&type=chunk)[64](index=64&type=chunk)[430](index=430&type=chunk) - The EGRRCPA of 2018 provided regulatory relief for institutions under **$10 billion** in assets, including Volcker Rule exemption and a simplified community bank leverage ratio[39](index=39&type=chunk) [Item 1A. Risk Factors](index=18&type=section&id=Item%201A.%20Risk%20Factors) The company faces risks from economic uncertainty, high commercial real estate loan concentration, intense competition, liquidity, interest rate fluctuations, and regulatory changes - Significant concentration in commercial real estate loans, totaling **$6.2 billion** (including construction) and representing **76.3%** of loans receivable as of December 31, 2022, exposing the company to real estate market risks[468](index=468&type=chunk)[469](index=469&type=chunk) - Highly competitive banking environment with substantial competition from traditional and fintech institutions for loans and deposits[491](index=491&type=chunk)[507](index=507&type=chunk) - Subject to liquidity risk, where the inability to meet obligations could arise from company-specific or industry-wide factors impacting funding access[494](index=494&type=chunk)[513](index=513&type=chunk) - Approaching the **$10 billion** asset threshold (**$9.6 billion** as of Dec 31, 2022) will trigger heightened regulatory requirements, including CFPB examination and reduced debit card interchange fees, increasing operating costs[524](index=524&type=chunk) - Interest rate changes and Federal Reserve monetary policy to combat inflation may adversely impact net interest income, earnings, and financial condition[526](index=526&type=chunk)[559](index=559&type=chunk) [Item 1B. Unresolved Staff Comments](index=27&type=section&id=Item%201B.%20Unresolved%20Staff%20Comments) No unresolved staff comments from the Securities and Exchange Commission - No unresolved staff comments[103](index=103&type=chunk)[586](index=586&type=chunk) [Item 2. Properties](index=28&type=section&id=Item%202.%20Properties) Principal office is a leased building in Englewood Cliffs, NJ, with other leased banking offices across NJ, NY, and Florida - The Bank's principal office is located at 301 Sylvan Avenue, Englewood Cliffs, NJ[567](index=567&type=chunk) - Operates banking offices across various counties in New Jersey, New York City, Long Island, Hudson Valley, and a financial center in West Palm Beach, Florida[567](index=567&type=chunk) [Item 3. Legal Proceedings](index=28&type=section&id=Item%203.%20Legal%20Proceedings) No significant pending legal proceedings are expected to materially affect the company - No significant pending legal proceedings beyond routine operations[106](index=106&type=chunk) [Item 4. Mine Safety Disclosures](index=28&type=section&id=Item%204.%20Mine%20Safety%20Disclosures) This item is not applicable to the company - Not applicable[568](index=568&type=chunk) Part II [Item 5. Market for Registrant's Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities](index=29&type=section&id=Item%205.%20Market%20for%20Registrant%27s%20Common%20Equity%2C%20Related%20Stockholder%20Matters%20and%20Issuer%20Purchases%20of%20Equity%20Securities) Common stock trades on NASDAQ under "CNOB"; **447,108** shares repurchased in 2022, with **1,827,640** shares remaining for repurchase - Common stock trades on the NASDAQ Global Select Market under the symbol **"CNOB"**[570](index=570&type=chunk) 2022 Share Repurchase Activity | Quarter | Total Shares Purchased | Average Price Paid per Share | | :--- | :--- | :--- | | First quarter 2022 | 144,793 | $32.82 | | Second quarter 2022 | 302,315 | $27.29 | | Third quarter 2022 | - | - | | Fourth quarter 2022 | - | - | | **Total 2022** | **447,108** | | - As of December 31, 2022, **1,827,640** shares remained available for repurchase under the authorized program[108](index=108&type=chunk)[109](index=109&type=chunk) [Item 6. Selected Financial Data](index=30&type=section&id=Item%206.%20Selected%20Financial%20Data) Selected financial data shows consistent growth in assets, loans, and deposits from 2020-2022, with 2022 total assets at **$9.6 billion** and diluted EPS at **$3.01** Selected Financial Data (in thousands, except per share data) | Metric | 2022 | 2021 | 2020 | | :--- | :--- | :--- | :--- | | **Balance Sheet Data** | | | | | Total assets | $9,644,948 | $8,129,480 | $7,547,339 | | Loans receivable | $8,099,689 | $6,828,622 | $6,236,307 | | Deposits | $7,356,622 | $6,332,953 | $5,959,224 | | Total stockholders' equity | $1,178,751 | $1,124,212 | $915,310 | | **Income Statement Data** | | | | | Net interest income | $302,119 | $262,878 | $237,991 | | Net income | $125,211 | $130,353 | $71,289 | | Net income available to common stockholders | $119,174 | $128,636 | $71,289 | | **Per Share Data** | | | | | Diluted earnings per share | $3.01 | $3.22 | $1.79 | | Book value per common share | $27.21 | $25.61 | $23.01 | [Item 7. Management's Discussion and Analysis of Financial Condition and Results of Operations](index=34&type=section&id=Item%207.%20Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Net income decreased in 2022 due to higher credit loss provisions and noninterest expenses, despite increased net interest income from strong loan growth, with total assets reaching **$9.6 billion** - Net income available to common stockholders decreased **7.4%** to **$119.2 million** in 2022 from **$128.6 million** in 2021, with diluted EPS decreasing **6.5%** to **$3.01**[600](index=600&type=chunk) - Net income decrease primarily driven by a **$23.2 million** increase in provision for credit losses and a **$17.4 million** increase in noninterest expenses, mainly salaries and benefits[583](index=583&type=chunk) - Total assets increased by **$1.5 billion** (**18.5%**) to **$9.6 billion** at year-end 2022, and total loans grew by **$1.3 billion** (**18.6%**) to **$8.1 billion**[126](index=126&type=chunk)[128](index=128&type=chunk) - Allowance for credit losses for loans increased by **$11.7 million** to **$90.5 million** as of December 31, 2022, due to organic loan growth and deteriorating economic forecasts[117](index=117&type=chunk)[581](index=581&type=chunk) [Loan Portfolio](index=38&type=section&id=Loan%20Portfolio) Gross loan portfolio grew **18.6%** to **$8.1 billion** in 2022, with commercial real estate and commercial loans as largest components, concentrated in the NY metropolitan area Loan Portfolio Composition (in thousands) | Loan Type | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | | :--- | :--- | :--- | :--- | | Commercial | $1,472,734 | $1,299,428 | $1,521,967 | | Commercial real estate | $5,795,228 | $4,741,590 | $3,783,550 | | Commercial construction | $574,139 | $540,178 | $617,747 | | Residential real estate | $264,748 | $255,269 | $322,564 | | Consumer | $2,312 | $1,886 | $1,853 | | **Gross loans** | **$8,109,161** | **$6,838,351** | **$6,247,681** | - Commercial real estate loans increased by **$1.1 billion**, or **22.2%**, in 2022, primarily due to multifamily loan growth[145](index=145&type=chunk) [Asset Quality](index=41&type=section&id=Asset%20Quality) Asset quality improved in 2022, with nonperforming assets decreasing to **$44.7 million** and the nonperforming assets to total assets ratio falling to **0.46%** Nonperforming Assets (in thousands) | Metric | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | | :--- | :--- | :--- | :--- | | Nonaccrual loans | $44,454 | $61,700 | $61,696 | | OREO | $264 | $ - | $ - | | **Total nonperforming assets** | **$44,718** | **$61,700** | **$61,696** | | Nonperforming assets to total assets | 0.46% | 0.76% | 0.82% | - Allowance for credit losses for loans as a percentage of loans receivable was **1.12%** as of December 31, 2022, a slight decrease from **1.15%** in 2021[152](index=152&type=chunk) [Liquidity and Capital Resources](index=47&type=section&id=Liquidity%20and%20Capital%20Resources) The company maintained adequate liquidity with **$760.0 million** in liquid assets, deposits grew to **$7.4 billion**, and capital ratios remained strong, exceeding regulatory minimums - Liquid assets totaled **$760.0 million**, representing **7.9%** of total assets as of December 31, 2022[160](index=160&type=chunk) - Total deposits increased by **$1.0 billion** to **$7.4 billion** at year-end 2022, with time deposits growing significantly to **$2.4 billion** from **$1.2 billion** in 2021[126](index=126&type=chunk)[385](index=385&type=chunk) Company Capital Ratios | Ratio | Dec 31, 2022 | Dec 31, 2021 | | :--- | :--- | :--- | | Leverage ratio | 10.68% | 11.65% | | Common equity Tier 1 risk-based ratio | 10.30% | 10.64% | | Risk-based Tier 1 capital ratio | 11.66% | 12.19% | | Risk-based capital ratio | 14.45% | 15.26% | [Item 7A. Quantitative and Qualitative Disclosures About Market Risk](index=52&type=section&id=Item%207A.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) Primary market risk is interest rate risk, managed via NII and EVE simulations; a **200** basis point rate increase would decrease NII by **2.22%** and EVE by **10.51%** - The principal objective of asset and liability management is to evaluate and manage interest rate risk[666](index=666&type=chunk) Interest Rate Sensitivity Analysis (as of Dec 31, 2022) | Rate Shock (basis points) | Estimated Change in NII (1-Year) | Estimated Change in EVE | | :--- | :--- | :--- | | +300 | -2.81% | -14.67% | | +200 | -2.22% | -10.51% | | +100 | -1.58% | -6.06% | | -100 | -2.01% | -1.13% | [Item 8. Financial Statements and Supplementary Data](index=53&type=section&id=Item%208.%20Financial%20Statements%20and%20Supplementary%20Data) Includes Crowe LLP's unqualified opinion on financial statements and internal controls, with the qualitative component of the allowance for credit losses as a critical audit matter - Independent auditor Crowe LLP issued an unqualified opinion on financial statements and effective internal control over financial reporting as of December 31, 2022[213](index=213&type=chunk) - The qualitative component of the Allowance for Credit Losses (ACL) on pooled commercial and commercial real estate loans was identified as a critical audit matter due to subjective judgments[219](index=219&type=chunk) - Effective January 1, 2021, the company adopted the CECL methodology for credit losses, replacing the incurred loss model[193](index=193&type=chunk)[355](index=355&type=chunk) [Consolidated Financial Statements](index=57&type=section&id=Consolidated%20Financial%20Statements) Consolidated financial statements show total assets of **$9.64 billion**, liabilities of **$8.47 billion**, and equity of **$1.18 billion** as of December 31, 2022 Consolidated Statement of Financial Condition Highlights (in thousands) | Account | Dec 31, 2022 | Dec 31, 2021 | | :--- | :--- | :--- | | Total assets | $9,644,948 | $8,129,480 | | Net loans receivable | $8,009,176 | $6,749,849 | | Total deposits | $7,356,622 | $6,332,953 | | Total liabilities | $8,466,197 | $7,005,268 | | Total stockholders' equity | $1,178,751 | $1,124,212 | Consolidated Statement of Income Highlights (in thousands) | Account | 2022 | 2021 | 2020 | | :--- | :--- | :--- | :--- | | Net interest income | $302,119 | $262,878 | $237,991 | | Provision for credit losses | $17,750 | $(5,500) | $41,000 | | Noninterest income | $13,243 | $15,691 | $14,400 | | Noninterest expense | $126,388 | $109,011 | $121,001 | | Net income | $125,211 | $130,353 | $71,289 | [Notes to Consolidated Financial Statements](index=62&type=section&id=Notes%20to%20Consolidated%20Financial%20Statements) Notes provide detailed disclosures on accounting policies, CECL adoption, investment and loan portfolios, asset quality, deposits, borrowings, capital, and fair value measurements - Note 4 details the loan portfolio; nonaccrual loans totaled **$44.5 million** as of Dec 31, 2022, a decrease from **$61.7 million** in the prior year[122](index=122&type=chunk) - Note 3 details the investment securities portfolio, entirely available-for-sale, with a fair value of **$634.9 million** and gross unrealized losses of **$87.2 million** at year-end 2022 due to interest rate changes[136](index=136&type=chunk)[317](index=317&type=chunk) - Note 14 indicates both the Company and the Bank were well-capitalized, with all capital ratios exceeding minimum requirements plus the capital conservation buffer[726](index=726&type=chunk)[749](index=749&type=chunk) [Item 9. Changes in and Disagreements With Accountants on Accounting and Financial Disclosure](index=122&type=section&id=Item%209.%20Changes%20in%20and%20Disagreements%20With%20Accountants%20on%20Accounting%20and%20Financial%20Disclosure) No changes in or disagreements with accountants on accounting and financial disclosure - None[830](index=830&type=chunk) [Item 9A. Controls and Procedures](index=122&type=section&id=Item%209A.%20Controls%20and%20Procedures) Management concluded disclosure controls and internal control over financial reporting were effective as of December 31, 2022, with no material changes - Management concluded the Company's disclosure controls and procedures were effective as of December 31, 2022[849](index=849&type=chunk) - Management determined the Company's internal control over financial reporting was effective as of December 31, 2022, based on the COSO framework[869](index=869&type=chunk) [Item 9B. Other Information](index=123&type=section&id=Item%209B.%20Other%20Information) No other information to report for this item - None[871](index=871&type=chunk) Part III [Items 10, 11, 12, 13, and 14](index=124&type=section&id=Items%2010%2C%2011%2C%2012%2C%2013%2C%20and%2014) Information for Items 10-14 is incorporated by reference from the definitive Proxy Statement for the 2023 Annual Meeting of Stockholders - Information for Part III (Items 10-14) is incorporated by reference from the company's definitive Proxy Statement for the 2023 Annual Stockholders Meeting, expected by April 30, 2023[854](index=854&type=chunk)[855](index=855&type=chunk)[873](index=873&type=chunk) Part IV [Item 15. Exhibits, Financial Statement Schedules](index=125&type=section&id=Item%2015.%20Exhibits%2C%20Financial%20Statement%20Schedules) This section lists financial statements detailed in Item 8 and all exhibits filed or incorporated by reference, with schedules omitted as inapplicable - This part contains the list of financial statements and exhibits filed as part of the annual report[859](index=859&type=chunk)[882](index=882&type=chunk) - All financial statement schedules are omitted as inapplicable or because required information is included in the Consolidated Financial Statements or notes thereto[862](index=862&type=chunk)

Financial Data and Key Metrics Changes - The company reported a return on assets exceeding 1.3% and a return on tangible common equity of nearly 15% [5] - The pre-provision net revenue (PPNR) as a percentage of assets exceeded 2%, marking the 10th consecutive quarter of strong performance [5] - The tangible common equity ratio stood at over 9% at year-end, indicating a strong capital position [6] - The tangible book value per share increased by 8% in 2022, following a 15% increase in 2021, totaling nearly 25% growth over two years [11] - The net interest margin (NIM) for the year was recorded at 3.70%, a record for the company [12] Business Line Data and Key Metrics Changes - The loan portfolio grew over 19% year-over-year, while deposits increased by more than 16% [6] - The company achieved record levels in both loan originations and deposits, benefiting from investments in team and infrastructure [6] - Nonperforming assets (NPAs) declined by more than 20%, with delinquencies remaining near zero [29] Market Data and Key Metrics Changes - The company noted increased competition for deposits due to the Federal Reserve's actions to combat inflation, leading to historically fierce competition for interest-bearing deposits [26][60] - The company is focusing on expanding its market share in Southeast Florida and Eastern Long Island, which have shown promising performance [9][70] Company Strategy and Development Direction - The company is committed to a client-centric business model, emphasizing long-term shareholder value creation [24] - Investments in technology and infrastructure are ongoing, with partnerships aimed at enhancing client experience and operational efficiency [8] - The company plans to be aggressive in deposit rate competition to retain existing clients and grow its commercial client base [13] Management's Comments on Operating Environment and Future Outlook - Management acknowledged the challenging economic environment but expressed confidence in the company's ability to navigate it and capitalize on growth opportunities [17][28] - The company anticipates continued pressure on NIM in the short term but expects to return to higher margins once the yield curve normalizes [61][98] - Management indicated that 2023 may present challenges but remains optimistic about maintaining strong performance metrics [92] Other Important Information - The company plans to call $75 million of subordinated debt, which was pre-funded in 2021, and is considering dividend increases and stock repurchases for 2023 [16] - The efficiency ratio for the year was 39%, even with ongoing investments in technology and staff [12] Q&A Session Summary Question: What are the expectations for net interest margin (NIM) and deposit competition? - Management noted that deposit competition is expected to remain intense, impacting NIM, but they are focused on maintaining client relationships despite the pressures [66][98] Question: How does the company view its growth prospects in 2023? - Management indicated that while growth opportunities exist, 2023 may be more challenging due to the economic environment and liquidity issues, but they are committed to supporting existing clients [92] Question: What is the outlook for credit quality and reserves? - Management expressed confidence in current credit quality metrics but acknowledged that normalization in delinquency rates is expected over time [86][95]

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, 2022 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 Jers ...

Financial Data and Key Metrics Changes - Deposits grew by 10.5% sequentially, while loans increased by 8.5% [7][26] - Average noninterest-bearing deposits rose by nearly 5% [7] - PPNR increased by almost 4.5% for the quarter and 12% year-over-year, exceeding 2% [12] - Tangible book value per share increased for the 10th consecutive quarter, up 30% over that period [12][38] - Efficiency ratio improved to 38.4% despite significant investments in technology and personnel [12][25] Business Line Data and Key Metrics Changes - Loan growth was primarily driven by traditional markets and existing clients, with 75% of growth from these areas [29] - Approximately 2/3 of loan growth was from commercial real estate (CRE), while 1/3 was from commercial loans [30] - The company is expanding into new verticals, including healthcare and SBA lending, contributing to loan growth [10][15] Market Data and Key Metrics Changes - The company has expanded into new geographic areas, including Southeast Florida and Eastern Long Island [9] - The Florida market has approximately $180 million to $200 million in loans and deposits [59] Company Strategy and Development Direction - The company is focused on relationship-based banking, emphasizing client-centric culture and organic growth [8][20] - Plans to cross the $10 billion asset threshold in 2023, with a commitment to maintaining a strong balance sheet [21][44] - Strategic tech investments are underway, including a partnership with Nymbus to create a new business vertical called VentureOn [18][76] Management's Comments on Operating Environment and Future Outlook - Management acknowledges increased competition for deposits but remains confident in their ability to generate core deposits [13][41] - Loan growth is expected to slow to a low double-digit annualized rate due to higher rates and Fed tightening [14][39] - Management is optimistic about the future, citing a strong foundation and readiness to capitalize on market opportunities [44][45] Other Important Information - Credit metrics remain sound, with nonperforming assets trending lower and delinquencies near 0 [17][35] - Provisioning for loan losses increased by about $10 million, maintaining a reserve-to-loan percentage of 1.16% [36] Q&A Session Summary Question: Insights on margin normalization amid rising rates - Management indicated that while there could be margin compression, they have successfully maintained margins historically and expect continued performance [48][49] Question: Details on deposit growth from new commercial customers - Management noted that nearly all loans originated had a depository relationship, with a mix of noninterest-bearing and interest-bearing deposits [50][51] Question: Factors influencing loan growth outlook - Management highlighted that recent initiatives and new hires contributed to strong growth, but a return to normalized growth rates is expected [54][56] Question: Specifics on growth in Florida market - The Florida market is approaching $200 million in loans and deposits, with growth being strong in that area [59] Question: Thoughts on M&A and crossing the $10 billion threshold - Management stated that crossing the $10 billion mark is of little consequence and they are prepared for any associated costs [60][61] Question: Update on fee initiatives and efficiency ratio - Management acknowledged that while the efficiency ratio could fluctuate, they aim to keep it below 40% while continuing to invest in growth opportunities [63][66] Question: Update on the VentureOn initiative - The VentureOn vertical will focus on tech companies with large deposit balances, aiming to provide bespoke banking services [76][77] Question: Health care segment updates - The health care portfolio currently stands at about $200 million, with a focus on various health care operators [80]

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, 2022 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 2022 Results Conference Call July 28, 2022 10:00 AM ET Company Participants Siya Vansia - Vice President of Marketing Frank Sorrentino - Chairman and Chief Executive Officer Bill Burns - Executive Vice President and Chief Financial Officer Conference Call Participants Justin Crowley - Piper Sandler Michael Perito - KBW Matthew Breese - Stephens Operator Greetings, and welcome to the ConnectOne Bancorp, Inc. Second Quarter 2022 Earnings Call. At this time, all partic ...

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, 2022 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 5 ...

ConnectOne Bancorp, Inc. (NASDAQ:CNOB) Q1 2022 Earnings Conference Call April 28, 2022 10:00 AM ET Company Participants Frank Sorrentino - Chairman and Chief Executive Officer Bill Burns - Executive Vice President and Chief Financial Officer Siya Vansia - Vice President of Marketing Conference Call Participants Matthew Breese - Stephens Inc. Michael Perito - KBW Operator Greetings, and welcome to ConnectOne Bancorp, Inc. First Quarter 2022 Earnings Conference Call. [Operator Instructions] As a reminder, thi ...

Interest Rates and Economic Impact - A 200-basis point increase in interest rates would result in an estimated increase of approximately $2.9 million or 0.24% in the economic value of portfolio equity as of December 31, 2021[179]. - The bank's interest income may be adversely affected if interest-bearing liabilities mature or re-price more quickly than interest-earning assets[180]. - The bank's earnings will significantly depend on its interest rate spread, which is influenced by market rates of interest and prevailing economic conditions[199]. - The bank's operations may be negatively affected by changes in monetary policy and interest rates[198]. Regulatory Compliance and Costs - The Dodd-Frank Act may lead to substantial new compliance costs, impacting the financial services industry and the bank's operations[184]. - The bank is subject to extensive governmental supervision and regulation, which may require substantial modifications to operations and incur additional compliance costs[183]. - The bank's management is actively reviewing the provisions of the Dodd-Frank Act to assess their probable impact on operations[194]. Deposit Insurance and Reserves - The minimum reserve ratio of the Deposit Insurance Fund increased to 1.35% of estimated annual insured deposits[190]. - The prohibition on payment of interest on demand deposits was repealed, effective July 21, 2011[188]. Technological Changes and Competition - The bank's ability to compete will depend on its capacity to anticipate and respond to technological changes in the financial services market[201].