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, 2025 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) (State or Oth ...

Exhibit 99.1 CONNECTONE BANCORP, INC. REPORTS SECOND QUARTER 2025 RESULTS; DECLARES COMMON AND PREFERRED DIVIDENDS Englewood Cliffs, N.J., July 29, 2025 (GLOBE NEWSWIRE) – ConnectOne Bancorp, Inc. (Nasdaq: CNOB) (the "Company" or "ConnectOne"), parent company of ConnectOne Bank (the "Bank"), today reported a net loss available to common stockholders of $(21.8) million for the second quarter of 2025 compared with net income available to common stockholders of $18.7 million for the first quarter of 2025 and $ ...

[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) Presents ConnectOne Bancorp's unaudited consolidated financial statements for Q1 2025, detailing condition, income, and cash flows Consolidated Statements of Condition Highlights (unaudited) | (in thousands) | March 31, 2025 | December 31, 2024 | | :--- | :--- | :--- | | **Total Assets** | **$9,759,255** | **$9,879,600** | | Net Loans Receivable | $8,118,731 | $8,192,125 | | Total Deposits | $7,767,230 | $7,820,114 | | **Total Liabilities** | **$8,506,316** | **$8,637,896** | | **Total Stockholders' Equity** | **$1,252,939** | **$1,241,704** | Consolidated Statements of Income Highlights (unaudited) | (in thousands, except per share data) | Three Months Ended March 31, 2025 | Three Months Ended March 31, 2024 | | :--- | :--- | :--- | | Net Interest Income | $65,756 | $60,300 | | Provision for Credit Losses | $3,500 | $4,000 | | **Net Income** | **$20,242** | **$17,205** | | Net Income Available to Common Stockholders | $18,733 | $15,696 | | **Diluted Earnings Per Share** | **$0.49** | **$0.41** | - The company entered into a definitive merger agreement with The First of Long Island Corporation, valued at approximately **$288 million** as of March 31, 2025, with shareholder approval obtained on February 14, 2025[39](index=39&type=chunk)[40](index=40&type=chunk)[41](index=41&type=chunk) - As of March 31, 2025, the available-for-sale investment securities portfolio had a fair value of **$636.8 million**, with gross unrealized losses of **$89.1 million** primarily due to interest rate changes, and no allowance for credit losses was recorded[47](index=47&type=chunk)[49](index=49&type=chunk)[60](index=60&type=chunk) [Management's Discussion and Analysis of Financial Condition and Results of Operations](index=49&type=section&id=Item%202.%20Management's%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management analyzes Q1 2025 financial performance, highlighting increased net income from expanded net interest margin and key operational areas [Operating Results Overview](index=50&type=section&id=Operating%20Results%20Overview) Net income to common stockholders increased in Q1 2025, driven by higher net interest income and lower credit loss provision Q1 2025 vs. Q1 2024 Performance | Metric | Q1 2025 | Q1 2024 | | :--- | :--- | :--- | | Net Income to Common Stockholders | $18.7 million | $15.7 million | | Diluted EPS | $0.49 | $0.41 | - The increase in net income was primarily due to **higher net interest income** and **lower provision for credit losses**, partially offset by **increased noninterest expenses**, which included **$1.3 million** in merger-related costs[174](index=174&type=chunk) [Net Interest Income and Margin](index=50&type=section&id=Net%20Interest%20Income%20and%20Margin) Net interest income increased to $66.6 million in Q1 2025, with net interest margin expanding to 2.93% due to lower funding costs Net Interest Income and Margin (Tax-Equivalent) | Metric | Q1 2025 | Q1 2024 | | :--- | :--- | :--- | | Net Interest Income | $66.6 million | $61.1 million | | Net Interest Margin | 2.93% | 2.64% | | Avg. Yield on Earning Assets | 5.52% | 5.63% | | Avg. Cost of Interest-Bearing Liabilities | 3.35% | 3.82% | [Financial Condition](index=53&type=section&id=Financial%20Condition) Total assets were $9.8 billion as of March 31, 2025, with strong liquidity and exceeding regulatory capital requirements Loan Portfolio Composition | Loan Category | Balance at Mar 31, 2025 (in thousands) | % of Total | Change from Dec 31, 2024 (in thousands) | | :--- | :--- | :--- | :--- | | Commercial | $1,492,920 | 18.2% | $(39,810) | | Commercial Real Estate | $5,837,671 | 71.1% | $(43,008) | | Commercial Construction | $617,593 | 7.5% | $1,347 | | **Total Gross Loans** | **$8,206,343** | **100.0%** | **$(74,139)** | Asset Quality Indicators | Metric | March 31, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Nonperforming Assets | $49,860 thousand | $57,310 thousand | | Nonperforming Assets to Total Assets | 0.51% | 0.58% | | ACL as a % of Loans Receivable | 1.00% | 1.00% | Capital Adequacy Ratios (Company) | Ratio | March 31, 2025 | Minimum Requirement | | :--- | :--- | :--- | | CET I Risk-Based Ratio | 11.14% | 4.50% | | Tier 1 Risk-Based Capital | 12.46% | 6.00% | | Total Risk-Based Capital | 14.29% | 8.00% | Tangible Book Value Per Share | Metric | March 31, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Tangible Book Value Per Common Share | $24.16 | $23.92 | | Tangible Common Equity Ratio | 9.73% | 9.49% | [Interest Rate Sensitivity Analysis](index=59&type=section&id=Interest%20Rate%20Sensitivity%20Analysis) The company manages interest rate risk using NII and EVE models, with rate changes impacting NII and EVE as of March 31, 2025 Interest Rate Sensitivity as of March 31, 2025 | Rate Shock (basis points) | Estimated Change in 1-Year NII | Estimated Change in EVE | | :--- | :--- | :--- | | +200 | -5.30% | -5.11% | | +100 | -2.16% | -1.64% | | -100 | +2.27% | +0.40% | [Qualitative and Quantitative Disclosures about Market Risks](index=68&type=section&id=Item%203.%20Qualitative%20and%20Quantitative%20Disclosures%20about%20Market%20Risks) The company identifies interest rate risk as its primary market risk, with detailed analysis in the MD&A section - The company's primary market risk is **interest rate risk management**, with further details provided in the MD&A section on Interest Rate Sensitivity Analysis[254](index=254&type=chunk) [Controls and Procedures](index=68&type=section&id=Item%204.%20Controls%20and%20Procedures) The company's disclosure controls and procedures were effective as of Q1 2025, with no material changes to internal controls - The CEO and CFO concluded that the company's disclosure controls and procedures are **effective**[255](index=255&type=chunk) - **No material changes** were made to the company's internal controls over financial reporting during the last fiscal quarter[256](index=256&type=chunk) [PART II – OTHER INFORMATION](index=69&type=section&id=PART%20II%20%E2%80%93%20OTHER%20INFORMATION) [Legal Proceedings](index=69&type=section&id=Item%201.%20Legal%20Proceedings) The company is not subject to any legal proceedings expected to materially impact its financial condition or operations - The Company is **not subject to any legal proceedings** which could have a **materially adverse impact** on its results of operations and financial condition[258](index=258&type=chunk) [Risk Factors](index=69&type=section&id=Item%201a.%20Risk%20Factors) No material changes to the company's inherent business risk factors have occurred since the FY2024 Annual Report on Form 10-K - There have been **no material changes** to the risks inherent in the business from those described in the Annual Report on Form 10-K for the year ended December 31, 2024[259](index=259&type=chunk) [Unregistered Sales of Equity Securities and Use of Proceeds](index=69&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) The company did not repurchase shares in Q1 2025, with 641,118 shares remaining authorized under the existing repurchase program - The Company **did not repurchase any shares** during the quarter ended March 31, 2025, with **641,118 shares remaining** for repurchase under the program[260](index=260&type=chunk) [Exhibits](index=70&type=section&id=Item%206.%20Exhibits) This section lists all exhibits filed with the Form 10-Q, including CEO and CFO certifications and Inline XBRL documents - The report includes **CEO and CFO certifications** pursuant to Sections 302 and 906 of the Sarbanes-Oxley Act, along with **Inline XBRL** instance and taxonomy documents[262](index=262&type=chunk)

Financial Performance - Net income available to common stockholders for Q1 2025 was $18.7 million, compared to $18.9 million in Q4 2024 and $15.7 million in Q1 2024, reflecting a year-over-year increase of 18.9%[2] - Diluted earnings per share for Q1 2025 were $0.49, unchanged from Q4 2024 and up from $0.41 in Q1 2024[2] - Operating net income for Q1 2025 was $19.7 million, down from $20.2 million in Q4 2024 but up from $15.9 million in Q1 2024[3] - Net income for Q1 2025 was $20,242, representing a 17.7% increase from $17,205 in Q1 2024[24] - Net income for Q1 2025 was $20,242,000, slightly down from $20,371,000 in Q4 2024, a decrease of 0.6%[28] - Operating net income available to common stockholders was $19,710,000 in Q1 2025, compared to $20,220,000 in Q4 2024, a decline of 2.5%[30] Interest Income and Margin - Fully taxable equivalent net interest income for Q1 2025 was $65.8 million, an increase of $1.0 million or 1.6% from Q4 2024, and up $5.5 million or 9.0% from Q1 2024[7][9] - Net interest income for Q1 2025 was $65,756, an increase of 8.1% compared to $60,300 in Q1 2024[24] - Net interest income for Q1 2025 was $65,756,000, an increase of 1.6% from $64,711,000 in Q4 2024[28] - The net interest margin widened by 7 basis points to 2.93% in Q1 2025, driven by a decrease in average costs of deposits[7] - Net interest margin (GAAP) increased to 2.93% in Q1 2025, up from 2.86% in Q4 2024[30] - The net interest spread improved to 2.17%, up from 2.05% in the prior period[35] Noninterest Income and Expenses - Noninterest income increased to $4.5 million in Q1 2025, compared to $3.7 million in Q4 2024 and $3.8 million in Q1 2024[10] - Noninterest income increased to $4,451 in Q1 2025, up from $3,848 in Q1 2024, a growth of 15.7%[24] - Total noninterest expenses for Q1 2025 were $39,305, an increase of 6.0% from $37,065 in Q1 2024[24] - Noninterest expenses were $39.3 million in Q1 2025, up from $38.5 million in Q4 2024 and $37.1 million in Q1 2024, primarily due to increased merger expenses[11] - Total noninterest income increased to $4,451,000 in Q1 2025, up from $3,744,000 in Q4 2024, representing a growth of 18.9%[28] - Noninterest expenses rose to $39,305,000 in Q1 2025, compared to $38,498,000 in Q4 2024, reflecting an increase of 2.1%[28] Assets and Liabilities - Total assets decreased to $9.759 billion as of March 31, 2025, from $9.880 billion as of December 31, 2024[15] - Total assets as of March 31, 2025, were $9,759,255, a decrease of 1.2% from $9,879,600 on December 31, 2024[23] - Total deposits decreased to $7,767,230 as of March 31, 2025, down from $7,820,114 at the end of 2024, a decline of 0.7%[23] - Total deposits were $7,767,230 as of March 31, 2025, a slight decrease from $7,820,114 on December 31, 2024, reflecting a 0.7% decline[26] - Gross loans decreased to $8,206,343 as of March 31, 2025, down from $8,280,482 on December 31, 2024, representing a decline of 0.9%[26] - Borrowings decreased to $613,053 as of March 31, 2025, down from $688,064 on December 31, 2024, a decline of 10.9%[26] Credit Losses and Risk Ratios - The provision for credit losses was stable at $3.5 million for Q1 2025, consistent with Q4 2024 and down from $4.0 million in Q1 2024[13] - Provision for credit losses remained stable at $3,500 for both Q1 2025 and Q4 2024[24] - Net loan charge-offs for the quarter were $3,400 thousand, slightly up from $3,334 thousand in the previous quarter, indicating a 2% increase[32] - Nonaccrual loans decreased to $49,860 thousand from $57,310 thousand, a reduction of 13%[32] - The common equity Tier 1 risk-based ratio improved to 11.14% from 10.97% in the previous quarter, showing a positive trend in capital adequacy[32] Capital Position - The company maintains a strong capital position with total stockholders' equity of $1,252,939 as of March 31, 2025[23] - Total stockholders' equity increased to $1,252,939 as of March 31, 2025, compared to $1,241,704 on December 31, 2024, marking a growth of 0.9%[27] - Tangible common equity rose to $929,280 thousand, compared to $917,766 thousand in the previous quarter, reflecting a 0.6% increase[32] - Book value per share (GAAP) increased to $29.69 from $29.47, marking a rise of 0.7%[32] Future Plans - The Company plans to finalize its merger with The First of Long Island Corporation in Q2 2025, aiming to create a premier community bank in the New York Metro area[5]

Assets and Mergers - ConnectOne Bancorp, Inc. has total assets of $9.880 billion[25] - The company completed the merger with Greater Hudson Bank, acquiring approximately $0.4 billion in loans and deposits[16] - The merger with Bancorp of New Jersey resulted in the acquisition of approximately $0.8 billion in loans and deposits[18] - The upcoming merger with The First of Long Island Corporation is expected to close in the first or second quarter of 2025, with FLIC having total assets of $4.1 billion and total deposits of $3.3 billion[20] - The company has acquired GHB, BoeFly, and BNJ since January 1, 2019, and is pending regulatory approval for the acquisition of FLIC[133] - The company is expected to exceed $10 billion in assets upon consummation of its merger with The First National Bank of Long Island, subjecting it to examination by the Consumer Financial Protection Bureau[58] Business Model and Operations - ConnectOne Bank operates a "branch-lite" model, focusing on efficiency and technology investments to serve clients in the New York Metropolitan area and South Florida[26] - The company offers a broad range of deposit and loan products, deriving a majority of revenue from net interest income[31] - ConnectOne Bank's market area includes robust markets in New Jersey, New York City, Long Island, and the Hudson Valley, with plans for continued expansion[29] - BoeFly, a subsidiary, connects small to medium-sized businesses with funding solutions through a digital marketplace[27] - The company emphasizes attracting quality business relationship officers to enhance client acquisition and retention[29] - The Company’s strategy emphasizes personalized banking services and cross-selling products to enhance client relationships and maintain funding costs[207] Employee and Training Initiatives - The Company had 489 full-time employees and 4 part-time and temporary employees as of December 31, 2024[43] - In 2024, 71 employees were promoted into new roles, reflecting the Company's focus on internal promotions[49] - ConnectOne University provided comprehensive job skills and cybersecurity training, advancing leadership skills for 125 managers in 2024[44] Regulatory Environment and Capital Requirements - The Dodd-Frank Act requires banking regulators to seek to make capital standards countercyclical, impacting capital requirements for the Company[58] - The Economic Growth, Regulatory Relief and Consumer Protection Act raised the asset threshold for stress tests from $10 billion to $250 billion, providing regulatory relief for midsized banks[60] - The Company and the Bank are required to maintain a Common Equity Tier 1 Capital Ratio of 4.5%, a Tier 1 Capital Ratio of 6.0%, and a Total Capital Ratio of 8.0%[73] - The New Rules require a capital conservation buffer of 2.5% composed entirely of CET1, on top of the minimum risk-weighted asset ratios[69] - An institution will be classified as "well capitalized" if it has a total risk-based capital ratio of at least 10.0%[64] - The Company has elected not to opt into the Community Bank Leverage Ratio framework[79] - The Company is studying the revisions to the Community Reinvestment Act regulations to determine the impact on its operations, which is currently uncertain[88] Loan Portfolio and Credit Losses - As of December 31, 2024, the company had $6.3 billion in commercial real estate loans, representing 76.2% of total loans receivable[104] - Commercial real estate loans accounted for 435% of the Bank's Tier 1 capital plus the allowance for credit losses on loans[104] - A significant portion of the loan portfolio will reset interest rates in 2025 and 2026, potentially increasing borrowers' repayment costs[111] - The company targets small-to medium-sized businesses, which may be more vulnerable to economic downturns, impacting their ability to repay loans[113] - The company is subject to regulatory scrutiny regarding its high concentration of commercial real estate loans, which may require heightened risk management practices[108] - The Company's allowance for credit losses for loans totaled $82.7 million as of December 31, 2024, an increase from $82.0 million in 2023, primarily due to increases in individually evaluated allowance[201] - The quantitative component of the allowance for credit losses for collectively evaluated loans decreased by $7.4 million to $81.2 million as of December 31, 2024, attributed to a decrease in collectively evaluated loans of $54.4 million[202] - The qualitative component of the allowance for credit losses increased by $8.0 million, reflecting trends in qualitative loss factors over 2024[202] Financial Performance - Net income available to common stockholders for the year ended December 31, 2024 was $67.8 million, a decrease of $13.2 million, or 16.3%, compared to $81.0 million for 2023[211] - Diluted earnings per share for 2024 were $1.76, reflecting a 15.0% decrease from $2.07 for 2023[211] - Net income available to common stockholders for 2023 was $81.0 million, a decrease of $38.2 million, or 32.1%, compared to $119.2 million for 2022[212] - Diluted earnings per share for 2023 were $2.07, a 31.2% decrease from $3.01 for 2022[212] - The company's net interest income is primarily influenced by the difference between interest earned on interest-earning assets and interest paid on borrowed funds[208] - Net interest margin is affected by the weighted average rates on interest-earning assets and interest-bearing liabilities[208] Risks and Challenges - The company may face challenges in raising additional capital to support its growth-oriented business strategy[102] - The impact of remote work on the commercial real estate market remains uncertain, potentially affecting borrowers' repayment capabilities[106] - Increased competition for deposits may require the company to raise interest rates to retain existing deposits or attract new ones[119] - The company faces substantial competition from fintech companies, which may offer more favorable terms and reduce margins on banking services[122] - The company may incur impairment to goodwill if significant negative industry trends or reduced cash flow estimates occur[132] - The inability to receive dividends from the bank could adversely affect the company's financial condition and results of operations[129] - The company is subject to heightened regulatory requirements due to its approaching $10 billion in total assets, which may increase operating costs[141] - Unanticipated costs related to the merger could have a dilutive effect on ConnectOne's earnings per share, potentially resulting in lower earnings than anticipated[154] - ConnectOne may face challenges in attracting and retaining customers during the merger process due to uncertainties affecting employees and business relationships[149] Cybersecurity and Compliance - Cybersecurity is a material part of ConnectOne's business, and incidents could have a material effect on its operations and reputation, although no significant incidents have occurred to date[174] - The Company maintains a cybersecurity risk mitigation program that includes monthly vulnerability scanning and annual risk assessments[178] Shareholder and Stock Information - The Company has a share repurchase program authorized for up to 2,000,000 shares, with 282,370 shares repurchased during the year ended December 31, 2024[190] - As of December 31, 2024, there were 641,118 shares remaining for repurchase under the share repurchase program[191] - The Company’s stock is traded on the NASDAQ Global Select Market under the symbol "CNOB," with 678 stockholders of record as of December 31, 2024[188]

Financial Performance - Net income available to common stockholders for Q4 2024 was $18.9 million, a 20.5% increase from Q3 2024 and a 6.2% increase from Q4 2023[1] - Diluted earnings per share for Q4 2024 were $0.49, compared to $0.41 in Q3 2024 and $0.46 in Q4 2023[1] - Full-year 2024 net income available to common stockholders was $67.8 million, down from $81.0 million in 2023[1] - Operating net income for Q4 2024 was $20.2 million, up from $16.1 million in Q3 2024 and $19.1 million in Q4 2023[2] - Net income for the year ended December 31, 2024, was $73,793 thousand, a decrease of 15.1% from $87,003 thousand in 2023[24] - Earnings per common share for the year ended December 31, 2024, were $1.77, down from $2.08 in 2023, reflecting a decrease of 14.9%[24] Interest Income and Margin - Fully taxable equivalent net interest income for Q4 2024 was $64.7 million, a 6.3% increase from Q3 2024[6] - The bank's net interest margin improved to 2.86% in Q4 2024, up from 2.67% in Q3 2024[6] - Net interest income after provision for credit losses was $233,537 thousand for the year ended December 31, 2024, down from $246,906 thousand in 2023, representing a decline of 5.4%[24] - The company reported a net interest income of $517,889 thousand for the year ended December 31, 2024, compared to $490,065 thousand in 2023, showing an increase of 5.7%[24] - Net interest income for Q4 2024 was $64,711 thousand, an increase of 3.0% compared to $60,887 thousand in Q3 2024[28] - Net interest income (tax equivalent basis) increased to $65,593 thousand from $62,627 thousand, showing a growth of 4.73%[31] Assets and Liabilities - Total assets as of December 31, 2024, were $9.880 billion, an increase from $9.856 billion a year earlier[14] - Total assets increased to $9,879,600 thousand as of December 31, 2024, compared to $9,855,603 thousand as of December 31, 2023, reflecting a growth of approximately 0.24%[23] - The company’s total liabilities were $8,637,896 thousand as of December 31, 2024, slightly down from $8,638,983 thousand in 2023, indicating a marginal decrease of 0.01%[23] - Total assets decreased slightly to $9,653,446 thousand from $9,742,853 thousand[36] Deposits and Loans - Total deposits rose to $7,820,114 thousand as of December 31, 2024, up from $7,536,202 thousand a year earlier, indicating an increase of 3.77%[23] - Total loans reached $8,275,553 thousand, reflecting an increase of 2.0% from $8,111,976 thousand in the previous quarter[26] - Loans receivable increased to $8,345,145 thousand from $8,297,957 thousand, reflecting a growth of 0.6% quarter-over-quarter[34] Credit Quality - Nonperforming assets were $57.3 million as of December 31, 2024, representing 0.58% of total assets[13] - The allowance for credit losses was 1.00% of loans receivable as of December 31, 2024, compared to 0.98% a year earlier[13] - The provision for credit losses increased to $13,800 thousand for the year ended December 31, 2024, compared to $8,200 thousand in 2023, marking a rise of 68.3%[24] - Nonperforming assets increased to $57,310 thousand from $52,524 thousand, indicating a rise in asset quality concerns[33] - Nonaccrual loans as a percentage of loans receivable rose to 0.63% from 0.57% in the previous quarter[34] Operational Efficiency - Noninterest expenses totaled $151,798 thousand for the year ended December 31, 2024, an increase of 5.4% from $143,949 thousand in 2023[24] - Noninterest expenses totaled $38,498 thousand in Q4 2024, a decrease from $38,641 thousand in Q3 2024[28] - The operating efficiency ratio (non-GAAP) improved to 52.9%, down from 53.4%, indicating enhanced operational efficiency[31] Equity and Shareholder Value - The company reported a total stockholders' equity of $1,241,704 thousand as of December 31, 2024, up from $1,239,496 thousand in the previous quarter[26] - Book value per share (GAAP) increased to $29.47 from $28.70, reflecting a positive trend in shareholder equity[33] - Common equity ratio (GAAP) decreased slightly to 11.45% from 11.71%, reflecting a minor decline in capital adequacy[33] Future Outlook - The proposed merger with The First of Long Island Corporation is expected to close in Q2 2025, enhancing ConnectOne's presence on Long Island[3]

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%[162] - Diluted earnings per share for Q3 2024 were $0.41, compared to $0.51 for Q3 2023, a decrease of 19.6%[162] - For the nine months ended September 30, 2024, net income available to common stockholders was $48.9 million, down from $63.2 million in the same period of 2023, a decrease of 22.7%[163] - Diluted earnings per share for the nine months ended September 30, 2024 were $1.27, compared to $1.61 for the same period in 2023, a decrease of 21.1%[163] Interest Income and Margin - Fully taxable equivalent net interest income for Q3 2024 decreased by $1.5 million, or 2.4%, from Q3 2023[165] - The net interest margin for Q3 2024 was 2.67%, down from 2.76% in Q3 2023, a decrease of 9 basis points[165] - Net interest income for the nine months ended September 30, 2024, was $182.6 million, down from $193.3 million in 2023, representing a decrease of 5.5%[176] - The company reported a net interest margin of 2.67% for the nine months ended September 30, 2024, down from 2.85% in 2023[172] - The average yield on interest-earning assets increased to 5.67% for the nine months ended September 30, 2024, compared to 5.30% in 2023[172] Loan and Credit Quality - The loan portfolio decreased by $235.5 million or 2.8% to $8.1 billion as of September 30, 2024, compared to December 31, 2023[183] - The provision for credit losses increased by $2.3 million in Q3 2024 compared to Q3 2023[162] - 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, with significant charge-offs related to multifamily and commercial loans[191] - Nonaccrual loans as of September 30, 2024 amounted to $51.3 million, representing 0.63% of total loans receivable, unchanged from December 31, 2023[199] - 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 in specific reserves[190] Noninterest Income and Expenses - Noninterest income rose to $13.0 million for the nine months ended September 30, 2024, compared to $9.8 million in 2023, marking an increase of 32.7%[177] - Noninterest expenses totaled $113.3 million for the nine months ended September 30, 2024, up from $106.1 million in 2023, indicating a rise of 6.8%[179] - Noninterest expenses for Q3 2024 included $0.7 million in merger expenses related to the merger with The First of Long Island Corporation[162] Deposits and Liquidity - Average total deposits increased by $27.7 million, or 0.4%, during Q3 2024 compared to Q3 2023, driven by a $143.5 million increase in savings deposits[223] - Total deposits decreased by $12.1 million, or 0.2%, to $7.52 billion as of September 30, 2024, compared to $7.54 billion as of December 31, 2023[235] - Estimated uninsured deposits rose to $6.50 billion as of September 30, 2024, from $6.15 billion as of December 31, 2023[234] - The bank had aggregate available and unused credit of approximately $2.9 billion as of September 30, 2024, after accounting for $1.4 billion in outstanding borrowings[218] - Cash and cash equivalents totaled $247.2 million as of September 30, 2024, reflecting a decrease of $4.5 million from December 31, 2023[219] Capital and Equity - The Company’s tangible common equity ratio improved to 9.71% as of September 30, 2024, compared to 9.25% as of December 31, 2023[240] - Total risk-based capital for the Company was $1.23 billion, with a ratio of 14.29% as of September 30, 2024, exceeding the minimum requirement[247] - The Company’s stockholders' equity remained flat at approximately $1.2 billion as of September 30, 2024, compared to December 31, 2023[240] - Retained earnings increased by $29 million, offset by $6 million in treasury stock and $2 million in accumulated other comprehensive losses[240] Interest Rate Sensitivity - A 200 basis-point increase in interest rates is estimated to decrease net interest income by 3.95% over the next year, compared to a decrease of 9.25% estimated as of December 31, 2023[206] - As of September 30, 2024, a 200 basis-point increase in interest rates would decrease net interest income by 1.23% over the next three years[207] - The estimated economic value of equity (EVE) would decrease by 9.81% with a 200 basis-point increase in interest rates as of September 30, 2024[208] Asset Management - Total interest-earning assets increased to $9.25 billion for the nine months ended September 30, 2024, compared to $9.16 billion for the same period in 2023, reflecting a growth of 0.9%[172] - The average securities portfolio increased by $13.5 million to approximately $736.9 million for the three months ended September 30, 2024, representing 8.0% of average total interest-earning assets[200] - Net unrealized losses on securities available-for-sale decreased to $51.1 million as of September 30, 2024, from $57.8 million as of December 31, 2023, due to changes in market conditions[201]

CONNECTONE BANCORP, INC. REPORTS THIRD QUARTER 2024 RESULTS; DECLARES COMMON AND PREFERRED DIVIDENDS Exhibit 99.1 Englewood Cliffs, N.J., October 24, 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 $15.7 million for the third quarter of 2024 compared with $17.5 million for the second quarter of 2024 and $19.9 million for the third quarter of 2023. In ...

Financial Performance - Net income available to common stockholders for Q2 2024 was $17.5 million, down from $19.9 million in Q2 2023, representing a decrease of 12.1%[160] - Diluted earnings per share for Q2 2024 were $0.46, compared to $0.51 for Q2 2023, reflecting a decline of 9.8%[160] - For the first half of 2024, net income available to common stockholders was $33.2 million, a decrease of 23.5% from $43.3 million in the same period of 2023[161] - The company's diluted earnings per share for the first half of 2024 were $0.86, down from $1.10 in the first half of 2023, a decrease of 21.8%[161] Interest Income and Margin - Fully taxable equivalent net interest income for Q2 2024 decreased by $2.4 million, or 3.7%, compared to Q2 2023[163] - The net interest margin for Q2 2024 was 2.72%, down from 2.81% in Q2 2023, a contraction of 9 basis points[163] - For the first half of 2024, fully taxable equivalent net interest income decreased by $9.1 million, or 6.9%, compared to the first half of 2023[164] - The net interest margin for the first half of 2024 was 2.68%, down from 2.89% in the first half of 2023, a decrease of 21 basis points[164] - The average yield on interest-earning assets increased to 5.67% for the six months ended June 30, 2024, compared to 5.21% in 2023[1] Loan and Deposit Trends - Average total loans increased by $63.5 million, or 0.8%, in Q2 2024 compared to Q2 2023[163] - As of June 30, 2024, gross loans totaled $8.162 billion, a decrease of $189.3 million or 2.3% from December 31, 2023[1] - Average total deposits decreased by $82 million, or 1.1%, during Q2 2024 compared to Q2 2023, primarily due to a decrease in noninterest-bearing demand deposits[223] - Average time deposits increased by $69 million during the six months ended June 30, 2024, attributed to increases in retail time deposits[229] - Total deposits rose by $40 million, or 0.5%, to $7.6 billion as of June 30, 2024, compared to $7.5 billion as of December 31, 2023[236] Noninterest Income and Expenses - Noninterest income for the three months ended June 30, 2024, totaled $4.4 million, up from $3.4 million in the same period of 2023, primarily due to a $0.7 million increase in net gains on the sale of loans held-for-sale[1] - Noninterest expenses for the six months ended June 30, 2024, were $74.7 million, an increase of $4.3 million compared to $70.3 million in 2023, driven by higher salaries and technology investments[1] Credit Quality and Losses - As of June 30, 2024, the allowance for credit losses for loans was $82.1 million, an increase of $0.1 million from $82.0 million as of December 31, 2023[189] - For the three months ended June 30, 2024, the provision for credit losses was $2.5 million, compared to $3.0 million for the same period in 2023, reflecting a decrease in general reserves[190] - Net charge-offs for the six months ended June 30, 2024, were $6.4 million, compared to $5.5 million for the same period in 2023, with the increase attributed to multifamily loans[191] - Nonaccrual loans decreased to $46.0 million as of June 30, 2024, from $52.5 million as of December 31, 2023, representing a reduction in nonperforming assets[199] Liquidity and Capital - Liquid assets as of June 30, 2024, totaled $731.2 million, representing 7.5% of total assets, an increase from $516.3 million (5.2% of total assets) as of December 31, 2023[217] - The Bank had aggregate available and unused credit of approximately $3.2 billion as of June 30, 2024, after accounting for outstanding borrowings[218] - The tangible common equity ratio improved to 9.46% as of June 30, 2024, up from 9.25% as of December 31, 2023[242] - Total risk-based capital ratio for the Company was 14.10% as of June 30, 2024, exceeding the minimum requirement of 8.00%[249] Interest Rate Sensitivity - A 200 basis-point increase in interest rates is estimated to decrease net interest income by 6.65% over the next year as of June 30, 2024[206] - As of June 30, 2024, a 200 basis-point increase in interest rates would decrease net interest income by 2.86% over the next three years[207] - The estimated economic value of equity (EVE) would decrease by 12.33% with a 200 basis-point increase in interest rates as of June 30, 2024[208]

Financial Performance - Net income available to common stockholders for Q1 2024 was $15.7 million, down from $23.4 million in Q1 2023, representing a decrease of 33.6%[149] - Diluted earnings per share for Q1 2024 were $0.41, compared to $0.59 in Q1 2023, a decrease of 30.5%[149] - Noninterest income totaled $3.9 million for Q1 2024, an increase from $2.8 million in Q1 2023, primarily driven by gains on loan sales[158] - Noninterest expenses rose to $37.1 million in Q1 2024, up from $34.9 million in Q1 2023, an increase of 6.3%[159] - Income tax expense decreased to $5.9 million in Q1 2024 from $9.1 million in Q1 2023, reflecting lower income before tax[160] - The effective tax rate for Q1 2024 was 25.5%, down from 26.7% in Q1 2023, due to lower taxable income[160] Loan Portfolio - Gross loans totaled $8.3 billion as of March 31, 2024, a decrease of $47.7 million, or 0.6%, compared to December 31, 2023[163] - The commercial real estate loan segment accounted for 70.2% of the total loan portfolio as of March 31, 2024[163] - As of March 31, 2024, total commercial real estate loans amounted to $5,829,950, a slight decrease from $5,895,545 as of December 31, 2023, maintaining a loan-to-value ratio of 56%[165] - The total multifamily loans as of March 31, 2024, were $2,496,821, a decrease from $2,553,401 as of December 31, 2023[166] - Average loans receivable increased to $8,332,729 for the three months ended March 31, 2024, compared to $8,117,572 for the same period in 2023[174] Credit Quality - The allowance for credit losses for loans increased to $82.9 million as of March 31, 2024, up from $82.0 million as of December 31, 2023[169] - The provision for credit losses for the three months ended March 31, 2024, was $4.0 million, compared to $1.0 million for the same period in 2023, reflecting changes in macroeconomic forecasts[170] - Net charge-offs for the three months ended March 31, 2024, were $3.2 million, a decrease from $4.5 million in the same period of 2023[171] - Nonaccrual loans decreased to $47,438 as of March 31, 2024, from $52,524 as of December 31, 2023, representing 0.57% of total loans receivable[178] - The ratio of annualized net charge-offs to average loans receivable during the period was 0.15% for the three months ended March 31, 2024, compared to 0.22% for the same period in 2023[174] Liquidity and Deposits - As of March 31, 2024, liquid assets totaled $706.2 million, representing 7.2% of total assets, an increase from $516.3 million (5.2%) as of December 31, 2023[195] - Average total deposits increased by $142 million, or 1.9%, to $7.5 billion for Q1 2024 from $7.4 billion for Q1 2023, primarily due to a $210 million increase in time deposits[199] - Total deposits increased by $53 million, or 0.7%, to $7.6 billion as of March 31, 2024, compared to $7.5 billion as of December 31, 2023[209] - Time deposits increased by $92 million, savings deposits by $41 million, and noninterest-bearing demand deposits by $31 million, while demand, interest-bearing & NOW deposits decreased by $111 million[209] - The bank's liquidity position is deemed adequate to meet short and long-term obligations, with liquid assets supporting operational needs[195] Interest Rate Sensitivity - The estimated change in Economic Value of Equity (EVE) for a 200 basis-point increase in interest rates would decrease EVE by 12.46% as of March 31, 2024[187] - A 200 basis-point increase in interest rates is projected to decrease net interest income (NII) by 6.38% over the next year as of March 31, 2024[185] - Average demand deposits included $1.1 billion in ICS reciprocal deposits for Q1 2024, compared to $376 million for Q1 2023, reflecting a shift in client deposits due to market conditions[202] - The beta for nonreciprocal brokered deposits is higher than that of ICS and CDARS reciprocal deposits, indicating a stronger correlation to market interest rates[203] Capital Position - Stockholders' equity remained flat at approximately $1.2 billion as of March 31, 2024, with retained earnings increasing by $9 million[214] - The tangible common equity ratio was 9.25% as of March 31, 2024, unchanged from December 31, 2023[216] - Total risk-based capital ratio for the Company was 13.88% as of March 31, 2024, exceeding the minimum requirement[221] - The Company held $648 million of time deposits with balances in excess of $250,000 as of March 31, 2024[211] - The interest rate for subordinated debentures was 8.43% as of March 31, 2024[212] - The Company’s total assets were approximately $9.85 billion as of March 31, 2024[216] - The Company and Bank satisfied the capital conservation buffer requirements as of March 31, 2024[222]