ConnectOne Bancorp(CNOB) - 2021 Q4 - Annual Report

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 - The prohibition on payment of interest on demand deposits was repealed, effective July 21, 2011[188].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].