The following is a summary of the ConnectOne Bancorp, Inc. (CNOB) Q1 2024 Earnings Call Transcript:

Financial Performance:

• ConnectOne Bancorp reported a gradual expansion in net interest margin ahead of Federal interest rate cuts, along with improved credit quality metrics in Q1 2024.

• The company has a tangible common equity ratio of 9.25% and increased its dividend payout to $0.18 per share, reflecting a positive profitability outlook.

• Future performance guidance involves sustaining a strong capital base and increased profitability, with a slight decline foreseen due to surpassing the $10 billion regulatory threshold.

• The bank experienced a steady rise in deposits since the previous quarter, thanks to strategic business expansion and growth of operations in Florida.

• The loan total is reported to be between $200 million to $250 million, with plans to increase fee income by 10% from the first to the fourth quarter.

Business Progress:

• ConnectOne has been focusing on relationship-based banking, leading to a decrease in exposure to non-relationship businesses and improvement in the loan-to-deposit ratio.

• The company continues to bring in high-performing talent and is optimistic about opportunities to expand non-interest income, particularly within the franchisor and franchisee base.

• The bank sees potential growth on Long Island, where it currently holds near $500 million of deposits.

• It is taking steps to strategically lower its Commercial Real Estate concentration levels and de-emphasize non-relationship lending to improve liquidity and tracking deposits.

• The company's capital deployment priorities include lending businesses that bring in deposits and buybacks, with a greater emphasis on readily accessible lines at the Federal Home Loan Bank and the Fed for immediate cash availability.

More details: ConnectOne Bank IR

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