ConnectOne Bancorp, Inc. (CNOB) SEC Filings & Earnings Calls

Balance sheet restructuring involves sale of $750M multifamily loan pool at a discount, indicating potential credit or interest rate risk in the portfolio.

“Company entered into an agreement to sell a pool of up to approximately $750 million in unpaid principal balance of non-relationship multifamily loans ... resulting in a $23.0 million pretax loss on loans held-for-sale” · word for word

Exposure to NYC rent-stabilized properties (61% of loan pool) carries regulatory and market risk, though being reduced.

“Loans secured by NYC rent-stabilized properties represent approximately 61% of the pool” · word for word

NYC rent-regulated multifamily loan concentration

“The increase in nonaccrual loans was primarily driven by a group of New York City multi-family loans secured by rent-stabilized properties, which added $29.9 million (net of charge-offs) to nonaccruals during the three months ended June 30, 2026.” · word for word

PCD loan portfolio with rent-regulated exposure

“Within the PCD loan portfolio as of June 30, 2026, there is a pool of rent-regulated loans amounting to $146.3 million. These loans are associated with multifamily properties located in the five boroughs of New York City, most of which are entirely or predominantly rent-regulated.” · word for word

Provision increase due to economic forecast

“$3.1 million increase in the provision for credit losses” · word for word

Merger integration costs

“first quarter of 2026 included merger expenses and restructuring charges related to the merger with FLIC of $2.1 million” · word for word

No material financial or operational risks disclosed

“Routine governance and shareholder meeting results; no financial metrics or forward guidance”

NYC rent-regulated multifamily credit concentration

“As of March 31, 2026, loans 30-59 days past due were 0.81% of loans receivable, compared to 0.19% as of December 31, 2025. This rise is predominantly due to an interrelated series of credits totaling $63.8 million secured by 19 multifamily NYC rent-regulated properties.” · word for word

PCD loan portfolio risk

“Within the PCD loan portfolio as of March 31, 2026, there is a pool of rent-regulated loans amounting to $158.0 million. These loans are associated with multifamily properties located in the five boroughs of New York City, most of which are entirely or predominantly rent-regulated.” · word for word

Interest rate sensitivity

“Based on our model, which was run as of March 31, 2026, we estimated that over the next one-year period a 200 basis-point instantaneous and parallel increase in the general level of interest rates would decrease our net interest income by 4.71%” · word for word

Provision for credit losses increased $2.9M sequentially, partly due to one isolated credit relationship causing higher 30-59 day delinquencies.

“a $2.9 million increase in the provision for credit losses ... 30-59 day delinquencies increased due to one isolated credit relationship” · word for word

Restructuring charges of $2.0M related to FLIC merger, indicating integration costs.

“first quarter of 2026 included restructuring charges related to the merger with the First of Long Island Corporation ("FLIC") of $2.0 million” · word for word

Merger Integration Risk

“The year was also transformational for the Company, as it completed its merger with The First of Long Island Corporation in June of 2025, adding an additional 36 offices to our branch network and seamlessly integrating the two banks, while completing a full systems conversion within two weeks of closing.” · word for word

Interest Rate Risk

“Financial risks faced by the Bank include credit risk relating to its loans liquidity risk and interest rate risk as it pertains to its entire balance sheet.” · word for word

Credit Risk

“Financial risks faced by the Bank include credit risk relating to its loans liquidity risk and interest rate risk as it pertains to its entire balance sheet.” · word for word

Cybersecurity Risk

“Cybersecurity risk is initially overseen at ConnectOne by the management IT Committee (the 'ITC').” · word for word

Credit quality deterioration from merger integration

“substandard loans and doubtful loans increased to $156.2 million, or 1.4% of loans receivable, as of December 31, 2025 from $72.4 million, or 0.9% of loans receivable, as of December 31, 2024.” · word for word

Borrower stress from loan repricing

“While these anticipated increased rates will benefit our results, the increased rates may also, in certain instances, place financial pressure on certain borrowers and potentially lead to elevated levels of stress, such as late payments or defaults.” · word for word

Provision for credit losses increased to $2.4M from $0.8M YoY

“The Company recorded a provision for credit losses of $2.4 million in the fourth quarter of 2025, compared to a provision of $0.8 million in the same quarter last year.”

Loss of key risk management executive; transition risk mitigated by internal appointment.

“Michael O’Malley, Chief Risk Officer, departing; Mark Pappas appointed as new CRO”

PCD loan exposure to rent-regulated multifamily in NYC

“Within the PCD loan portfolio as of September 30, 2025, there is a pool of rent-regulated loans amounting to $200.5 million. These loans are associated with multifamily properties located in the five boroughs of New York City, most of which are entirely or predominantly rent-regulated.” · word for word

Integration risk from FLIC merger

“The increases when compared to the nine months ended September 30, 2024 were primarily due to the merger with FLIC.” · word for word

Interest rate sensitivity

“a 200 basis-point instantaneous and parallel increase in the general level of interest rates would decrease our net interest income by 4.05%” · word for word

Merger integration risk; nonrecurring items (ERTC, pension gain) inflate reported earnings.

“third quarter of 2025 results included several nonrecurring items that contributed to the overall increase in net income ... $6.6 million Employee Retention Tax Credit and a $3.5 million defined benefit pension plan curtailment gain, which were partially offset by $2.9 million in merger and restructuring expenses” · word for word