# EDGAR Filing Document

**Accession Number:** 0000712771
**File Stem:** 0001437749-25-023723
**Filing Date:** 2025-7
**Character Count:** 48641
**Document Hash:** 32a4de63f496b79082071d2685ff06af
**Contains OCR:** False
**Source Format:** 

## Filing Content

## Filing Summary
**0001437749-25-023723.hdr.sgml**: 20250729

**ACCESSION NUMBER**: 0001437749-25-023723

**CONFORMED SUBMISSION TYPE**: 8-K

**PUBLIC DOCUMENT COUNT**: 15

**CONFORMED PERIOD OF REPORT**: 20250729

**ITEM INFORMATION**: Results of Operations and Financial Condition

**ITEM INFORMATION**: Financial Statements and Exhibits

**FILED AS OF DATE**: 20250729

**DATE AS OF CHANGE**: 20250729

**FILER**: 

**COMPANY DATA:**
- **COMPANY CONFORMED NAME:** ConnectOne Bancorp, Inc.
- **CENTRAL INDEX KEY:** 0000712771
- **STANDARD INDUSTRIAL CLASSIFICATION:** STATE COMMERCIAL BANKS [6022]
- **ORGANIZATION NAME:** 02 Finance
- **EIN:** 521273725
- **STATE OF INCORPORATION:** NJ
- **FISCAL YEAR END:** 1231

**FILING VALUES:**
- **FORM TYPE:** 8-K
- **SEC ACT:** 1934 Act
- **SEC FILE NUMBER:** 001-40751
- **FILM NUMBER:** 251157563

**BUSINESS ADDRESS:**
- **STREET 1:** 301 SYLVAN AVENUE
- **CITY:** ENGLEWOOD CLIFFS
- **STATE:** NJ
- **ZIP:** 07632
- **BUSINESS PHONE:** 2018168900

**MAIL ADDRESS:**
- **STREET 1:** 301 SYLVAN AVENUE
- **CITY:** ENGLEWOOD CLIFFS
- **STATE:** NJ
- **ZIP:** 07632

**FORMER COMPANY:**
- **FORMER CONFORMED NAME:** CENTER BANCORP INC
- **DATE OF NAME CHANGE:** 19920703

?xml version='1.0' encoding='ASCII'? cnob20220929_8k.htm

**UNITED STATES**

**SECURITIES AND EXCHANGE COMMISSION**

**Washington, D.C. 20549**

_________________

**FORM 8-K**

_________________

**CURRENT REPORT**

**Pursuant to Section 13 or 15(d)**

 **of the Securities Exchange Act of 1934**

&nbsp;&nbsp;&nbsp;&nbsp;**July 29, 2025**

_______________________________

**CONNECTONE BANCORP, INC.**

(Exact name of registrant as specified in its charter)

_______________________________

---

| | | |
|:---|:---|:---|
| **New Jersey** | **001-40751** | **52-1273725** |
| (State or Other Jurisdiction of Incorporation) | (Commission File Number) | (I.R.S. Employer Identification No.) |

---

**301 Sylvan Avenue**

**Englewood Cliffs**,**New Jersey07632**

(Address of Principal Executive Offices) (Zip Code)

**(**844**) **266-2548**

(Registrant's telephone number, including area code)

**N/A**

(Former name or former address, if changed since last report)

_______________________________

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

☐ Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

☐ Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

☐ Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

☐ Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Securities registered pursuant to Section 12(b) of the Act:

---

| | | |
|:---|:---|:---|
| Title of each class | Trading Symbol(s) | Name of each exchange on which registered |
| Common stock | CNOB | NASDAQ |
| Depositary Shares (each representing a 1/40th interest in a share of 5.25% Series A Non-Cumulative, perpetual preferred stock) | CNOBP | NASDAQ |

---

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).

Emerging growth company ☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

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&nbsp;&nbsp;&nbsp;&nbsp;**Item 2.02. Results of Operations and Financial Condition.**

On July 29, 2025, the Registrant issued a press release, a copy of which is attached hereto as Exhibit 99.1 and is incorporated herein by reference.

**Item 9.01. Financial Statements and Exhibits.**

---

| | |
|:---|:---|
| 99.1 | [Press Release dated July 29, 2025](ex_812703.htm) |
| 104 | Cover Page Interactive Data File (embedded within the Inline XBRL document) |

---

------

**SIGNATURE**

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

---

| | | |
|:---|:---|:---|
|  | **ConnectOne Bancorp, Inc.** | **ConnectOne Bancorp, Inc.** |
| Date: July 29, 2025 | By:  | <u>/s/ William S. Burns</u> |
|  |  | William S. Burns |
|  |  | Senior Executive Vice President and Chief Financial Officer |

---

## Exhibit 99.1

**Exhibit 99.1**

![connectoblogo.jpg](connectoblogo.jpg)

**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 $17.5 million for the second quarter of 2024. Diluted earnings per share were $(0.52) for the second quarter of 2025 compared with $0.49 for the first quarter of 2025 and $0.46 for the second quarter of 2024. On June 1, 2025, the merger with The First of Long Island Corporation ("FLIC") was completed. The full quarter results of the combined entity include one month of activity from FLIC. Historical financial information includes only the operations of ConnectOne, pre-merger. Return on average assets was (0.73)%, 0.84% and 0.79% for the three months ended June 30, 2025, March 31, 2025 and June 30, 2024, respectively. Return on average tangible common equity was (8.42)%, 8.25% and 7.98% for the three months ended June 30, 2025, March 31, 2025 and June 30, 2024, respectively.

Operating net income available to common stockholders, which excludes non-operating items (primarily merger-related expenses and an initial provision for credit losses totaling $58.1 million, pre-tax, in the aggregate), was $23.1 million for the second quarter of 2025, $19.7 million for the first quarter of 2025 and $17.9 million for the second quarter of 2024. Operating diluted earnings per share were $0.55 for the second quarter of 2025, $0.51 for the first quarter of 2025 and $0.47 for the second quarter of 2024. Operating return on average assets was 0.89%, 0.88% and 0.80% for the three months ended June 30, 2025, March 31, 2025 and June 30, 2024, respectively. Operating return on average tangible common equity was 9.29%, 8.59% and 8.05% for the three months ended June 30, 2025, March 31, 2025 and June 30, 2024, respectively. See supplemental tables for a complete reconciliation of GAAP earnings to operating earnings, and other non-GAAP measures.

The decrease in net income available to common stockholders and diluted earnings per share during the second quarter of 2025 when compared to the first quarter of 2025 was primarily due to a $34.3 million increase in noninterest expenses, which included $30.7 million in merger expenses and a $32.2 million increase in provision for credit losses. The provision for credit losses during the second quarter of 2025 included $27.4 million in an initial provision for credit losses related to the merger with FLIC. The increase in noninterest expenses and provision for credit losses was partially offset by a $13.1 million increase in net interest income, a $0.7 million increase in noninterest income and a $12.1 million decrease in income tax expenses. The decrease in net income available to common stockholders and diluted earnings per share during the second quarter of 2025 when compared to the second quarter of 2024 was primarily due to a $36.1 million increase in noninterest expenses, which included the aforementioned $30.7 million in merger expenses and a $33.2 million increase in provision for credit losses, which included the aforementioned $27.4 million initial provision for credit losses related to the merger with FLIC. These increases were partially offset by a $17.4 million increase in net interest income, a $0.8 million increase in noninterest income and a $11.7 decrease in income tax expenses.

"ConnectOne's solid second quarter reflects continued momentum in executing our strategy and the integration of the largest merger in our Company's history," commented Frank Sorrentino, Chairman and Chief Executive Officer of ConnectOne. "Following completion of the merger on June 1<sup>st</sup>, we immediately opened as a unified organization with one team, and fully deployed the ConnectOne brand across our new markets. This transformational merger establishes ConnectOne as a $14 billion regional financial institution with 61 locations and more than 700 banking professionals."

"The merger and the addition of our new team members continues to exceed expectations. Our core systems conversion was successfully completed, and our client-centric execution has resulted in strong client retention. We've also seen steady momentum in new client onboarding, reinforcing the complementary nature of both organizations." Mr. Sorrentino added, "Operationally, the merger has significantly improved our loan and deposit mix, net interest margin, credit metrics, and profitability ratios. At June 30, 2025 total loans were $11.2 billion, deposits totaled $11.3 billion, and our market capitalization now exceeds $1.2 billion. The current loan-to-deposit ratio of 99% and noninterest-bearing demand composition exceeding 21% reflect both the merger and our relationship-based approach."

------

"I'm incredibly proud of how seamlessly our teams have come together as one organization, with a shared commitment to client success and operational excellence. We believe these early results reflect the compelling value of the transaction and reinforce our confidence in the long-term potential of the combined franchise," Mr. Sorrentino concluded.

**Dividend Declarations**

The Company announced that its Board of Directors declared a cash dividend on both its common stock and its outstanding preferred stock. A cash dividend on common stock of $0.18 per share will be paid on September 2, 2025, to common stockholders of record on August 15, 2025. A dividend of $0.328125 per depositary share, representing a 1/40<sup>th</sup> interest in a share of the Company's 5.25% Fixed Rate Reset Non-Cumulative Perpetual Preferred Stock, Series A, will also be paid on September 2, 2025 to holders of record on August 15, 2025.

**Operating Results**

Fully taxable equivalent net interest income for the second quarter of 2025 was $79.8 million, an increase of $13.2 million, or 19.9%, from the first quarter of 2025, due to a 13 basis-point widening of the net interest margin to 3.06% from 2.93%, and a 13.5% increase in average interest earning assets. The increase in average interest-earning assets was primarily due to the merger with FLIC. Accretion of purchase accounting adjustments of $3.3 million contributed approximately 13 basis points to the net interest margin during the second quarter of 2025. The margin also benefited from an 11 basis-point decrease in the average costs of deposits, including noninterest-bearing deposits, partially offset by higher average cash balances and the impact of a $200 million long-term subordinated debt issuance, with a rate of 8.125%, that was consummated on May 15, 2025.

Fully taxable equivalent net interest income for the second quarter of 2025 increased $17.6 million, or 28.2%, from the second quarter of 2024, due to a 34 basis-point widening of the net interest margin to 3.06% from 2.72%, and a 13.7% increase in average interest earning assets. The increase in average interest-earning assets was primarily due to the merger with FLIC. The aforementioned accretion of purchase accounting adjustments contributed approximately 13 basis points to the net interest margin during the second quarter of 2025. The margin also benefited from a 56 basis-point decrease in the average costs of deposits, including noninterest-bearing deposits, partially offset by higher average cash balances and the subordinated debt issuance discussed above.

Noninterest income was $5.2 million in the second quarter of 2025, $4.5 million in the first quarter of 2025 and $4.4 million in the second quarter of 2024. The $0.7 million increase in noninterest income for the second quarter of 2025 when compared to the first quarter of 2025 was primarily due to a $0.6 million increase in deposit, loan and other income and a $0.5 million increase in BOLI income (partially resulting from 1035 exchanges), partially offset by a $0.2 million decrease in net gains on sale of loans held-for-sale and a $0.2 million decrease in net gains on equity securities. The merger with FLIC primarily contributed to all of the aforementioned increases. The $0.8 million increase in noninterest income for the second quarter of 2025 when compared to the second quarter of 2024 was primarily due to a $0.9 million increase in deposit, loan and other income, a $0.6 million increase in net gains on equity securities and a $0.4 million increase in BOLI income, partially offset by a $1.1 million decrease in net gains on sale of loans held-for-sale.

Noninterest expenses were $73.6 million for the second quarter of 2025, $39.3 million for the first quarter of 2025 and $37.6 million for the second quarter of 2024. The increase of $34.3 million during the second quarter of 2025 when compared to the first quarter of 2025 was primarily due to a $29.4 million increase in merger expenses, a $2.7 million increase in salaries and employee benefits, a $1.0 million increase in amortization of core deposit intangibles and a $0.8 million increase in occupancy and equipment. The $36.1 million increase in noninterest expenses for the second quarter of 2025 when compared to the second quarter of 2024 was primarily due to a $30.7 million increase in merger expenses, a $2.5 million increase in salaries and employee benefits, a $0.9 million increase in amortization of core deposit intangibles, a $0.7 million increase in professional and consulting expenses, a $0.6 million increase in occupancy and equipment expenses and a $0.6 million increase in information technology and communications expenses, partially offset by a $0.4 decrease in other expenses.

------

The increases from the first quarter of 2025 and the second quarter of 2024 were primarily due to the merger with FLIC.

There was a net income tax benefit of $5.0 million during the second quarter of 2025 compared to income tax expense of $7.2 million during the first quarter of 2025 and $6.7 million during the second quarter of 2024. Included in the second quarter of 2025 was an estimated $3.0 million state tax liability resulting from intercompany dividends. The overall decrease in income tax expense when compared to the first quarter of 2025 and the second quarter of 2024 was primarily due to lower taxable income that resulted from the additional expenses due to the FLIC merger.

**Asset Quality**

The provision for credit losses was $35.7 million for the second quarter of 2025, $3.5 million for the first quarter of 2025 and $2.5 million for the second quarter of 2024. Included in the provision for the second quarter of 2025 was a $27.4 million initial provision for credit losses related to the FLIC merger. In each of the quarters presented, the provision for credit losses reflected net portfolio growth, charges related to individually evaluated loans, and changing macroeconomic forecasts and conditions.

Nonperforming assets, which includes nonaccrual loans and other real estate owned (the Bank had no other real estate owned during the periods reported), were $39.2 million as of June 30, 2025, $57.3 million as of December 31, 2024 and $46.0 million as of June 30, 2024. The decrease in nonaccruals was primarily due to the work out of three CRE relationships totaling $22.0 million, partially offset by $4.3 million in loans placed into nonaccrual status. Nonperforming assets as a percentage of total assets were 0.28% as of June 30, 2025, 0.58% as of December 31, 2024 and 0.47% as of June 30, 2024. The ratio of nonaccrual loans to loans receivable was 0.35%, 0.69% and 0.56%, as of June 30, 2025, December 31, 2024 and June 30, 2024, respectively. The annualized net loan charge-offs ratio was 0.22% for the second quarter of 2025, 0.17% for the first quarter of 2025 and 0.16% for the second quarter of 2024.

The allowance for credit losses represented 1.40%, 1.00% and 1.01% of loans receivable as of June 30, 2025, December 31, 2024 and June 30, 2024, respectively. The allowance for credit losses related to the loan portfolio increased $73.5 million to $156.2 million, compared to $82.7 million as of December 31, 2024. The increase was primarily due to the FLIC merger: $43.3 million of allowance recorded through goodwill related to the purchased credit-deteriorated loans and $27.4 million reflecting the initial provision for credit losses. The allowance for credit losses as a percentage of nonaccrual loans was 398.2% as of June 30, 2025, 144.3% as of December 31, 2024 and 178.3% as of June 30, 2024. Criticized and classified loans as a percentage of loans receivable was 2.44% as of June 30, 2025, down from 2.68% as of December 31, 2024 and up from 1.50% as of June 30, 2024. Loans delinquent 30 to 89 days were 0.13% of loans receivable as of June 30, 2025, up from 0.04% as of December 31, 2024 and up from 0.11% as of June 30, 2024.

**Selected Balance Sheet Items**

As of June 30, 2025, the balance sheet reflected the merger with FLIC. The Company's total assets were $13.9 billion as of June 30, 2025, compared to $9.9 billion as of December 31, 2024. Loans receivable were $11.2 billion as of June 30, 2025 and $8.3 billion as of December 31, 2024. Total deposits were $11.3 billion as of June 30, 2025 and $7.8 billion as of December 31, 2024. The increase in total assets, loans receivable and total deposits were primarily due to the merger with FLIC.

The Company's total stockholders' equity was $1.5 billion as of June 30, 2025 and $1.2 billion as of December 31, 2024. The increase in total stockholders' equity was primarily due to an increase in common stock of $270.8 million which represented the fair value stock consideration issued for the FLIC merger, partially offset by a $16.9 million decrease in retained earnings. As of June 30, 2025, the Company's tangible common equity ratio and tangible book value per share were 8.09% and $21.95, respectively, compared to 9.49% and $23.92, respectively, as of December 31, 2024. Total goodwill and other intangible assets were $281.9 million as of June 30, 2025, and $213.0 million as of December 31, 2024.

------

**Use of Non-GAAP Financial Measures**

In addition to the results presented in accordance with Generally Accepted Accounting Principles ("GAAP"), ConnectOne routinely supplements its evaluation with an analysis of certain non-GAAP measures. ConnectOne believes these non-GAAP financial measures, in addition to the related GAAP measures, provide meaningful information to investors in understanding our operating performance and trends. These non-GAAP measures have inherent limitations and are not required to be uniformly applied and are not audited. They should not be considered in isolation or as a substitute for an analysis of results reported under GAAP. These non-GAAP measures may not be comparable to similarly titled measures reported by other companies. Reconciliations of non-GAAP financial measures disclosed in this earnings release to the comparable GAAP measures are provided in the accompanying tables.

**Second Quarter 2025 Results Conference Call**

Management will also host a conference call and audio webcast at 10:00 a.m. ET on July 29, 2025 to review the Company's financial performance and operating results. The conference call dial-in number is 1 (646) 307-1963, access code 7519286. Please dial in at least five minutes before the start of the call to register. An audio webcast of the conference call will be available to the public, on a listen-only basis, via the "Investor Relations" link on the Company's website <u>https://www.ConnectOneBank.com</u> or at <u>http://ir.connectonebank.com</u>.

A replay of the conference call will be available beginning at approximately 1:00 p.m. ET on Tuesday, July 29, 2025 and ending on Tuesday, August 5, 2025 by dialing 1 (609) 800-9909, access code 7519286. An online archive of the webcast will be available following the completion of the conference call at <u>https://www.ConnectOneBank.com</u> or at <u>http://ir.connectonebank.com</u>.

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**About ConnectOne Bancorp, Inc.**

ConnectOne Bancorp, Inc., is a modern financial services company that operates, through its subsidiary, ConnectOne Bank, and the Bank's fintech subsidiary, BoeFly, Inc. ConnectOne Bank is a high-performing commercial bank offering a full suite of banking & lending products and services that focus on small to middle-market businesses. BoeFly, Inc. is a fintech marketplace that connects borrowers in the franchise space with funding solutions through a network of partner banks. ConnectOne Bancorp, Inc. is traded on the Nasdaq Global Market under the trading symbol "CNOB," and information about ConnectOne may be found at <u>https://www.connectonebank.com</u>.

**This news release contains certain forward-looking statements which are based on certain assumptions and describe future plans, strategies, and expectations of the Company. These forward-looking statements are generally identified by use of the words "believe," "expect," "intend," "anticipate," "estimate," "project," or similar expressions. The Company's ability to predict results or the actual effect of future plans or strategies is inherently uncertain. Factors which could have a material adverse effect on the operations of the Company and its subsidiaries include, but are not limited to, those factors set forth in Item 1A** – **Risk Factors of the Company**'**s Annual Report on Form 10-K, as filed with the U.S. Securities and Exchange Commission, as supplemented by the Company**'**s subsequent filings with the U.S. Securities and Exchange Commission, and changes in interest rates, general economic conditions, legislative/regulatory changes, monetary and fiscal policies of the U.S. Government, including policies of the U.S. Treasury and the Federal Reserve Board, the quality or composition of the loan or investment portfolios, demand for loan products, deposit flows, competition, demand for financial services in the Company's market area, changes in accounting principles and guidelines and the impact of the health emergencies and natural disasters on the Company, its employees and operations, and its customers. These risks and uncertainties should be considered in evaluating forward-looking statements and undue reliance should not be placed on such statements. The Company does not undertake, and specifically disclaims any obligation, to publicly release the result of any revisions which may be made to any forward-looking statements to reflect events or circumstances after the date of such statements or to reflect the occurrence of anticipated or unanticipated events.** 

**<u>Investor Contact</u>:**

**William S. Burns**

**Senior Executive Vice President & CFO**

**201.816.4474;** <u>bburns@cnob.com</u>

**<u>Media Contact</u>:**

**Shannan Weeks**

**MikeWorldWide**

**732.299.7890;** <u>sweeks@mww.com</u>

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**CONNECTONE BANCORP, INC. AND SUBSIDIARIES**

**CONSOLIDATED CONDENSED STATEMENTS OF FINANCIAL CONDITION**

**(in thousands)**

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| | | | |
|:---|:---|:---|:---|
|  | **June 30** | **December 31,**  | **June 30** |
|  | **2025** | **2024** | **2024** |
|  | **(unaudited)** |  | **(unaudited)** |
| **ASSETS** |  |  |  |
| Cash and due from banks | $97792 | $57816 | $47105 |
| Interest-bearing deposits with banks | 498741 | 298672 | 246408 |
| Cash and cash equivalents | 596533 | 356488 | 293513 |
| Investment securities | 1227200 | 612847 | 620579 |
| Equity securities | 19707 | 20092 | 19743 |
| Loans held-for-sale | 1027 | 743 | 435 |
| Loans receivable | 11164477 | 8274810 | 8157903 |
| Less: Allowance for credit losses - loans | 156190 | 82685 | 82077 |
| Net loans receivable | 11008287 | 8192125 | 8075826 |
| Investment in restricted stock, at cost | 49248 | 40449 | 43403 |
| Bank premises and equipment, net | 54297 | 28447 | 28881 |
| Accrued interest receivable | 60950 | 45498 | 48262 |
| Bank owned life insurance | 364836 | 243672 | 240985 |
| Right of use operating lease assets | 31282 | 14489 | 13359 |
| Goodwill | 215611 | 208372 | 208372 |
| Core deposit intangibles | 66315 | 4639 | 5232 |
| Other assets | 220445 | 111739 | 125141 |
| **Total assets** | $13915738 | $9879600 | $9723731 |
| **LIABILITIES** |  |  |  |
| Deposits: |  |  |  |
| Noninterest-bearing | $2424529 | $1422044 | $1268882 |
| Interest-bearing | 8853958 | 6398070 | 6307132 |
| Total deposits | 11278487 | 7820114 | 7576014 |
| Borrowings | 783859 | 688064 | 756144 |
| Subordinated debentures, net | 276500 | 79944 | 79692 |
| Operating lease liabilities | 35334 | 15498 | 14435 |
| Other liabilities | 45127 | 34276 | 73219 |
| **Total liabilities** | 12419307 | 8637896 | 8499504 |
| **COMMITMENTS AND CONTINGENCIES** |  |  |  |
| **STOCKHOLDERS' EQUITY** |  |  |  |
| Preferred stock | 110927 | 110927 | 110927 |
| Common stock | 857765 | 586946 | 586946 |
| Additional paid-in capital | 36728 | 36347 | 33955 |
| Retained earnings | 614532 | 631446 | 610759 |
| Treasury stock | (76116) | (76116) | (76116) |
| Accumulated other comprehensive loss | (47405) | (47846) | (42244) |
| **Total stockholders' equity** | 1496431 | 1241704 | 1224227 |
| **Total liabilities and stockholders' equity** | $13915738 | $9879600 | $9723731 |

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**CONNECTONE BANCORP, INC. AND SUBSIDIARIES**

**CONSOLIDATED STATEMENTS OF INCOME**

**(dollars in thousands, except for per share data)**

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| | | | | |
|:---|:---|:---|:---|:---|
|  | **Three Months Ended**  | **Three Months Ended**  | **Six Months Ended**  | **Six Months Ended**  |
|  | **06/30/25** | **06/30/24** | **06/30/25** | **06/30/24** |
| **Interest income** |  |  |  |  |
| Interest and fees on loans | $132316 | $120145 | $247667 | $240233 |
| Interest and dividends on investment securities: |  |  |  |  |
| Taxable | 7437 | 4683 | 12424 | 9017 |
| Tax-exempt | 1419 | 1121 | 2516 | 2275 |
| Dividends | 788 | 1217 | 1677 | 2342 |
| Interest on federal funds sold and other short-term investments | 4070 | 2841 | 6535 | 5747 |
| Total interest income | 146030 | 130007 | 270819 | 259614 |
| **Interest expense** |  |  |  |  |
| Deposits | 60239 | 62086 | 114231 | 122493 |
| Borrowings | 6908 | 6482 | 11949 | 15382 |
| Total interest expense | 67147 | 68568 | 126180 | 137875 |
| **Net interest income** | 78883 | 61439 | 144639 | 121739 |
| Provision for credit losses | 35700 | 2500 | 39200 | 6500 |
| **Net interest income after provision for credit losses** | 43183 | 58939 | 105439 | 115239 |
| **Noninterest income** |  |  |  |  |
| Deposit, loan and other income | 2570 | 1654 | 4576 | 3246 |
| Income on bank owned life insurance | 2087 | 1677 | 3671 | 3341 |
| Net gains on sale of loans held-for-sale | 181 | 1277 | 513 | 1783 |
| Net gains (losses) on equity securities | 347 | (209) | 876 | (123) |
| Total noninterest income | 5185 | 4399 | 9636 | 8247 |
| **Noninterest expenses** |  |  |  |  |
| Salaries and employee benefits | 25233 | 22721 | 47811 | 44852 |
| Occupancy and equipment | 3478 | 2899 | 6158 | 5908 |
| FDIC insurance | 2000 | 1800 | 3800 | 3600 |
| Professional and consulting | 2598 | 1923 | 4964 | 3851 |
| Marketing and advertising | 840 | 613 | 1435 | 1290 |
| Information technology and communications | 4792 | 4198 | 9396 | 8587 |
| Merger expenses | 30745 |  | 32065 |  |
| Bank owned life insurance restructuring charge |  |  | 327 |  |
| Amortization of core deposit intangibles | 1251 | 321 | 1530 | 642 |
| Other expenses | 2712 | 3119 | 5468 | 5929 |
| Total noninterest expenses | 73649 | 37594 | 112954 | 74659 |
| **(Loss) income before income tax expense** | (25281) | 25744 | 2121 | 48827 |
| Income tax (benefit) expense | (4988) | 6688 | 2172 | 12566 |
| **Net (loss) income** | (20293) | 19056 | (51) | 36261 |
| Preferred dividends | 1509 | 1509 | 3018 | 3018 |
| **Net (loss) income available to common stockholders** | $(21802) | $17547 | $(3069) | $33243 |
| **Earnings per common share:** |  |  |  |  |
| Basic | $(0.52) | $0.46 | $(0.08) | $0.87 |
| Diluted | (0.52) | 0.46 | (0.08) | 0.86 |

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ConnectOne's management believes that the supplemental financial information, including non-GAAP measures provided below, is useful to investors. The non-GAAP measures should not be viewed as a substitute for financial results determined in accordance with GAAP, and are not necessarily comparable to non-GAAP financial measures presented by other companies.

**CONNECTONE BANCORP, INC.**

**SUPPLEMENTAL GAAP AND NON-GAAP FINANCIAL MEASURES**

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
|  | **As of** | **As of** | **As of** | **As of** | **As of** |
|  | **Jun. 30,** | **Mar. 31,** | **Dec. 31,** | **Sept. 30,** | **Jun. 30,** |
|  | **2025** | **2025** | **2024** | **2024** | **2024** |
| <u>**Selected Financial Data**</u> | **(dollars in thousands)** | **(dollars in thousands)** | **(dollars in thousands)** | **(dollars in thousands)** | **(dollars in thousands)** |
| Total assets | $13915738 | $9759255 | $9879600 | $9639603 | $9723731 |
| Loans receivable: |  |  |  |  |  |
| Commercial | 1597590 | $1483392 | $1522308 | $1505743 | $1491079 |
| Commercial real estate | 4285663 | 3356943 | 3384319 | 3261160 | 3274941 |
| Multifamily | 3348308 | 2490256 | 2506782 | 2482258 | 2499581 |
| Commercial construction | 681222 | 617593 | 616246 | 616087 | 639168 |
| Residential | 1254646 | 256555 | 249691 | 250249 | 256786 |
| Consumer | 1709 | 1604 | 1136 | 835 | 945 |
| Gross loans | 11169138 | 8206343 | 8280482 | 8116332 | 8162500 |
| Net deferred loan fees | (4661) | (5209) | (5672) | (4356) | (4597) |
| Loans receivable | 11164477 | 8201134 | 8274810 | 8111976 | 8157903 |
| Loans held-for-sale | 1027 | 202 | 743 |  | 435 |
| Total loans | $11165504 | $8201336 | $8275553 | $8111976 | $8158338 |
| Investment and equity securities | $1246907 | $655665 | $632939 | $667112 | $640322 |
| Goodwill and other intangible assets | 281926 | 212732 | 213011 | 213307 | 213604 |
| Deposits: |  |  |  |  |  |
| Noninterest-bearing demand | $2424529 | $1319196 | $1422044 | $1262568 | $1268882 |
| Time deposits | 3065015 | 2550223 | 2557200 | 2614187 | 2593165 |
| Other interest-bearing deposits | 5788943 | 3897811 | 3840870 | 3647350 | 3713967 |
| Total deposits | $11278487 | $7767230 | $7820114 | $7524105 | $7576014 |
| Borrowings | $783859 | $613053 | $688064 | $742133 | $756144 |
| Subordinated debentures (net of debt issuance costs) | 276500 | 80071 | 79944 | 79818 | 79692 |
| Total stockholders' equity | 1496431 | 1252939 | 1241704 | 1239496 | 1224227 |
| **<u>Quarterly Average Balances</u>** |  |  |  |  |  |
| Total assets | $11108430 | $9748605 | $9563446 | $9742853 | $9745853 |
| Loans receivable: |  |  |  |  |  |
| Commercial | $1486245 | $1488962 | $1487850 | $1485777 | $1517446 |
| Commercial real estate (including multifamily) | 6404302 | 5852342 | 5733188 | 5752467 | 5789498 |
| Commercial construction | 643115 | 610859 | 631022 | 628740 | 652227 |
| Residential | 587118 | 256430 | 250589 | 252975 | 254284 |
| Consumer | 5759 | 5687 | 5204 | 7887 | 5155 |
| Gross loans | 9126539 | 8214280 | 8107853 | 8127846 | 8218610 |
| Net deferred loan fees | (5097) | (5525) | (4727) | (4513) | (5954) |
| Loans receivable | 9121442 | 8208755 | 8103126 | 8123333 | 8212656 |
| Loans held-for-sale | 352 | 259 | 498 | 83 | 169 |
| Total loans | $9121794 | $8209014 | $8103624 | $8123416 | $8212825 |
| Investment and equity securities | $845614 | $655191 | $653988 | $650897 | $637551 |
| Goodwill and other intangible assets | 235848 | 212915 | 213205 | 213502 | 213813 |
| Deposits: |  |  |  |  |  |
| Noninterest-bearing demand | $1680653 | $1305722 | $1304699 | $1259912 | $1256251 |
| Time deposits | 2662411 | 2480990 | 2478163 | 2625329 | 2587706 |
| Other interest-bearing deposits | 4463648 | 3888131 | 3838575 | 3747427 | 3721167 |
| Total deposits | $8806712 | $7674843 | $7621437 | $7632668 | $7565124 |
| Borrowings | $723303 | $686391 | $648300 | $717586 | $787256 |
| Subordinated debentures (net of debt issuance costs) | 170802 | 79988 | 79862 | 79735 | 79609 |
| Total stockholders' equity | 1344254 | 1254373 | 1241738 | 1234724 | 1220621 |

---

------

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
|  | **Three Months Ended** | **Three Months Ended** | **Three Months Ended** | **Three Months Ended** | **Three Months Ended** |
|  | **Jun. 30,** | **Mar. 31,** | **Dec. 31,** | **Sept. 30,** | **Jun. 30,** |
|  | **2025** | **2025** | **2024** | **2024** | **2024** |
|  | **(dollars in thousands, except for per share data)**  | **(dollars in thousands, except for per share data)**  | **(dollars in thousands, except for per share data)**  | **(dollars in thousands, except for per share data)**  | **(dollars in thousands, except for per share data)**  |
| **Net interest income** | $78883 | $65756 | $64711 | $60887 | $61439 |
| Provision for credit losses | 35700 | 3500 | 3500 | 3800 | 2500 |
| Net interest income after provision for credit losses | 43183 | 62256 | 61211 | 57087 | 58939 |
| **Noninterest income** |  |  |  |  |  |
| Deposit, loan and other income | 2570 | 2006 | 1798 | 1817 | 1654 |
| Income on bank owned life insurance | 2087 | 1584 | 1656 | 2145 | 1677 |
| Net gains on sale of loans held-for-sale | 181 | 332 | 597 | 343 | 1277 |
| Net gains (losses) on equity securities | 347 | 529 | (307) | 432 | (209) |
| Total noninterest income | 5185 | 4451 | 3744 | 4737 | 4399 |
| **Noninterest expenses** |  |  |  |  |  |
| Salaries and employee benefits | 25233 | 22578 | 22244 | 22957 | 22721 |
| Occupancy and equipment | 3478 | 2680 | 2818 | 2889 | 2899 |
| FDIC insurance | 2000 | 1800 | 1800 | 1800 | 1800 |
| Professional and consulting | 2598 | 2366 | 2449 | 2147 | 1923 |
| Marketing and advertising | 840 | 595 | 495 | 635 | 613 |
| Information technology and communications | 4792 | 4604 | 4523 | 4464 | 4198 |
| Merger expenses | 30745 | 1320 | 863 | 742 |  |
| Branch closing expenses |  |  | 477 |  |  |
| Bank owned life insurance restructuring charge |  | 327 |  |  |  |
| Amortization of core deposit intangible | 1251 | 279 | 296 | 297 | 321 |
| Other expenses | 2712 | 2756 | 2533 | 2710 | 3119 |
| Total noninterest expenses | 73649 | 39305 | 38498 | 38641 | 37594 |
| **(Loss) income before income tax expense** | (25281) | 27402 | 26457 | 23183 | 25744 |
| Income tax (benefit) expense | (4988) | 7160 | 6086 | 6022 | 6688 |
| **Net (loss) income** | (20293) | 20242 | 20371 | 17161 | 19056 |
| Preferred dividends | 1509 | 1509 | 1509 | 1509 | 1509 |
| **Net (loss) income available to common stockholders** | $(21802) | $18733 | $18862 | $15652 | $17547 |
| Weighted average diluted common shares outstanding | 42173758 | 38511237 | 38519581 | 38525484 | 38448594 |
| Diluted EPS | $(0.52) | $0.49 | $0.49 | $0.41 | $0.46 |
| **<u>Reconciliation of GAAP Net Income to Operating Net Income:</u>** |  |  |  |  |  |
| **Net (loss) income** | $(20293) | $20242 | $20371 | $17161 | $19056 |
| Merger expenses | 30745 | 1320 | 863 | 742 |  |
| Estimated state tax liability on intercompany dividends | 3000 |  |  |  |  |
| Initial provision for credit losses related to merger | 27418 |  |  |  |  |
| Branch closing expenses |  |  | 477 |  |  |
| Bank owned life insurance restructuring charge |  | 327 |  |  |  |
| Amortization of core deposit intangibles | 1251 | 279 | 296 | 297 | 321 |
| Net (gains) losses on equity securities | (347) | (529) | 307 | (432) | 209 |
| Tax impact of adjustments | (17168) | (420) | (585) | (171) | (149) |
| **Operating net income** | $24606 | $21219 | $21729 | $17597 | $19437 |
| Preferred dividends | 1509 | 1509 | 1509 | 1509 | 1509 |
| **Operating net income available to common stockholders** | $23097 | $19710 | $20220 | $16088 | $17928 |
| Operating diluted EPS (non-GAAP) <sup>(1)</sup> | $0.55 | $0.51 | $0.52 | $0.42 | $0.47 |
| **<u>Return on Assets Measures</u>** |  |  |  |  |  |
| Average assets | $11108430 | $9748605 | $9653446 | $9742853 | $9745853 |
| Return on avg. assets | (0.73)% | 0.84% | 0.84% | 0.70% | 0.79% |
| Operating return on avg. assets (non-GAAP) <sup>(2)</sup> | 0.89 | 0.88 | 0.90 | 0.72 | 0.80 |
| Pre-provision net operating revenue ("PPNR") return on avg. assets (non-GAAP) <sup>(3)</sup> | 1.47 | 1.33 | 1.28 | 1.11 | 1.17 |

---

------

<sup>(1)</sup> Operating net income available to common stockholders divided by weighted average diluted shares outstanding.

<sup>(2)</sup> Operating net income divided by average assets.

<sup>(3)</sup> Net income before income tax expense, provision for credit losses, merger charges, BOLI restructuring charges and net gains on equity securities divided by average assets.

------

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
|  | **Three Months Ended** | **Three Months Ended** | **Three Months Ended** | **Three Months Ended** | **Three Months Ended** |
|  | **Jun. 30,** | **Mar. 31,** | **Dec. 31,** | **Sept. 30,** | **Jun. 30,** |
|  | **2025** | **2025** | **2024** | **2024** | **2024** |
| <u>**Return on Equity Measures**</u> | **(dollars in thousands)** | **(dollars in thousands)** | **(dollars in thousands)** | **(dollars in thousands)** | **(dollars in thousands)** |
| Average stockholders' equity | $1344254 | $1254373 | $1241738 | $1234724 | $1220621 |
| Less: average preferred stock | (110927) | (110927) | (110927) | (110927) | (110927) |
| Average common equity | $1233327 | $1143446 | $1130811 | $1123797 | $1109694 |
| Less: average intangible assets | (235848) | (212915) | (213205) | (213502) | (213813) |
| Average tangible common equity | $997479 | $930531 | $917606 | $910295 | $895881 |
| Return on avg. common equity (GAAP) | (7.09)% | 6.64% | 6.64% | 5.54% | 6.36% |
| Operating return on avg. common equity (non-GAAP) <sup>(4)</sup> | 7.51 | 6.99 | 7.11 | 5.70 | 6.50 |
| Return on avg. tangible common equity (non-GAAP) <sup>(5)</sup> | (8.42) | 8.25 | 8.27 | 6.93 | 7.98 |
| Operating return on avg. tangible common equity (non-GAAP) <sup>(6)</sup> | 9.29 | 8.59 | 8.77 | 7.03 | 8.05 |
| **<u>Efficiency Measures</u>** |  |  |  |  |  |
| Total noninterest expenses | $73649 | $39305 | $38498 | $38641 | $37594 |
| Merger expenses | (30745) | (1320) | (863) | (742) |  |
| Branch closing expenses |  |  | (477) |  |  |
| Bank owned life insurance restructuring charge |  | (327) |  |  |  |
| Amortization of core deposit intangibles | (1251) | (279) | (296) | (297) | (321) |
| Operating noninterest expense | $41653 | $37379 | $36862 | $37602 | $37273 |
| Net interest income (tax equivalent basis) | $79810 | $66580 | $65593 | $61710 | $62255 |
| Noninterest income | 5185 | 4451 | 3744 | 4737 | 4399 |
| Net (gains) losses on equity securities | (347) | (529) | 307 | (432) | 209 |
| Operating revenue | $84648 | $70502 | $69644 | $66015 | $66863 |
| Operating efficiency ratio (non-GAAP) <sup>(7)</sup> | 49.2% | 53.0% | 52.9% | 57.0% | 55.7% |
| **<u>Net Interest Margin</u>** |  |  |  |  |  |
| Average interest-earning assets | $10468589 | $9224712 | $9117201 | $9206038 | $9210050 |
| Net interest income (tax equivalent basis) | $79810 | $66580 | $65593 | $61710 | $62255 |
| Net interest margin (non-GAAP) | 3.06% | 2.93% | 2.86% | 2.67% | 2.72% |

---

------

<sup>(4)</sup> Operating net income available to common stockholders divided by average common equity.

<sup>(5)</sup> Net income available to common stockholders, excluding amortization of intangible assets, divided by average tangible common equity.

<sup>(6)</sup> Operating net income available to common stockholders, divided by average tangible common equity.

<sup>(7)</sup> Operating noninterest expense divided by operating revenue.

------

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
|  | **As of** | **As of** | **As of** | **As of** | **As of** |
|  | **Jun. 30,** | **Mar. 31,** | **Dec. 31,** | **Sept. 30,** | **Jun. 30,** |
|  | **2025** | **2025** | **2024** | **2024** | **2024** |
| <u>**Capital Ratios and Book Value per Share**</u> | **(dollars in thousands, except for per share data)** | **(dollars in thousands, except for per share data)** | **(dollars in thousands, except for per share data)** | **(dollars in thousands, except for per share data)** | **(dollars in thousands, except for per share data)** |
| Stockholders equity | $1496431 | $1252939 | $1241704 | $1239496 | $1224227 |
| Less: preferred stock | (110927) | (110927) | (110927) | (110927) | (110927) |
| Common equity | $1385504 | $1142012 | $1130777 | $1128569 | $1113300 |
| Less: intangible assets | (281926) | (212732) | (213011) | (213307) | (213604) |
| Tangible common equity | $1103578 | $929280 | $917766 | $915262 | $899696 |
| Total assets | $13915738 | $9759255 | $9879600 | $9639603 | $9723731 |
| Less: intangible assets | (281926) | (212732) | (213011) | (213307) | (213604) |
| Tangible assets | $13633812 | $9546523 | $9666589 | $9426296 | $9510127 |
| Common shares outstanding | 50270162 | 38469975 | 38370317 | 38368217 | 38365069 |
| Common equity ratio (GAAP) | 9.96% | 11.70% | 11.45% | 11.71% | 11.45% |
| Tangible common equity ratio (non-GAAP) <sup>(8)</sup> | 8.09 | 9.73 | 9.49 | 9.71 | 9.46 |
| Regulatory capital ratios (Bancorp): |  |  |  |  |  |
| Leverage ratio | 9.25% | 11.33% | 11.33% | 11.10% | 10.97% |
| Common equity Tier 1 risk-based ratio | 10.04 | 11.14 | 10.97 | 11.07 | 10.90 |
| Risk-based Tier 1 capital ratio | 11.06 | 12.46 | 12.29 | 12.42 | 12.25 |
| Risk-based total capital ratio | 14.35 | 14.29 | 14.11 | 14.29 | 14.10 |
| Regulatory capital ratios (Bank): |  |  |  |  |  |
| Leverage ratio | 10.22% | 11.67% | 11.66% | 11.43% | 11.29% |
| Common equity Tier 1 risk-based ratio | 12.22 | 12.82 | 12.63 | 12.79 | 12.60 |
| Risk-based Tier 1 capital ratio | 12.22 | 12.82 | 12.63 | 12.79 | 12.60 |
| Risk-based total capital ratio | 13.24 | 13.79 | 13.60 | 13.77 | 13.58 |
| Book value per share (GAAP) | $27.56 | $29.69 | $29.47 | $29.41 | $29.02 |
| Tangible book value per share (non-GAAP) <sup>(9)</sup> | 21.95 | 24.16 | 23.92 | 23.85 | 23.45 |
| **<u>Net Loan Charge-offs (Recoveries):</u>** |  |  |  |  |  |
| Net loan charge-offs (recoveries): |  |  |  |  |  |
| Charge-offs | $5039 | $3555 | $3363 | $3559 | $3595 |
| Recoveries | (118) | (155) | (29) | (53) | (324) |
| Net loan charge-offs | $4921 | $3400 | $3334 | $3506 | $3271 |
| Net loan charge-offs as a % of average loans receivable (annualized) | 0.22% | 0.17% | 0.16% | 0.17% | 0.16% |
| **<u>Asset Quality</u>** |  |  |  |  |  |
| Nonaccrual loans | $39228 | $49860 | $57310 | $51300 | $46026 |
| Other real estate owned |  |  |  |  |  |
| Nonperforming assets | $39228 | $49860 | $57310 | $51300 | $46026 |
| Allowance for credit losses - loans ("ACL") | $156190 | $82403 | $82685 | $82494 | $82077 |
| Less: nonaccretable credit marks | 43336 | 173 | 173 | 173 | 173 |
| ACL excluding nonaccretable credit marks | $112854 | $82230 | $82512 | $82321 | $81904 |
| Loans receivable | 11164477 | 8201134 | 8274810 | 8111976 | 8157903 |
| Nonaccrual loans as a % of loans receivable | 0.35% | 0.61% | 0.69% | 0.63% | 0.56% |
| Nonperforming assets as a % of total assets | 0.28 | 0.51 | 0.58 | 0.53 | 0.47 |
| ACL as a % of loans receivable | 1.40 | 1.00 | 1.00 | 1.02 | 1.01 |
| ACL excluding nonaccretable credit marks as a % of loans receivable | 1.01 | 1.00 | 1.00 | 1.01 | 1.00 |
| ACL as a % of nonaccrual loans | 398.2 | 165.3 | 144.3 | 160.8 | 178.3 |

---

------

<sup>(8)</sup> Tangible common equity divided by tangible assets

<sup>(9)</sup> Tangible common equity divided by common shares outstanding at period-end

------

**CONNECTONE BANCORP, INC.**

**NET INTEREST MARGIN ANALYSIS**

**(dollars in thousands)**

---

| | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
|  | **For the Three Months Ended** | **For the Three Months Ended** | **For the Three Months Ended** | **For the Three Months Ended** | **For the Three Months Ended** | **For the Three Months Ended** | **For the Three Months Ended** | **For the Three Months Ended** | **For the Three Months Ended** |
|  | **June 30, 2025** | **June 30, 2025** | **June 30, 2025** | **March 31, 2025** | **March 31, 2025** | **March 31, 2025** | **June 30, 2024** | **June 30, 2024** | **June 30, 2024** |
|  | **Average**  |  |  | **Average**  |  |  | **Average**  |  |  |
|  | **Balance** | **Interest** | **Rate <sup>(7)</sup>** | **Balance** | **Interest** | **Rate <sup>(7)</sup>** | **Balance** | **Interest** | **Rate <sup>(7)</sup>** |
| **Interest-earning assets:** | | | | | | | | | |
| Investment securities <sup>(1) (2)</sup> | $935996 | $9234 | 3.96% | $745873 | $6375 | 3.47% | $739591 | $6102 | 3.32% |
| Loans receivable and loans held-for-sale <sup>(2) (3) (4)</sup> | 9121794 | 132865 | 5.84 | 8209014 | 115883 | 5.73 | 8212825 | 120663 | 5.91 |
| Federal funds sold and interest-bearing deposits with banks | 367309 | 4070 | 4.44 | 229491 | 2466 | 4.36 | 212811 | 2841 | 5.37 |
| Restricted investment in bank stock | 43490 | 788 | 7.27 | 40334 | 889 | 8.94 | 44823 | 1217 | 10.92 |
| **Total interest-earning assets** | 10468589 | 146957 | 5.63 | 9224712 | 125613 | 5.52 | 9210050 | 130823 | 5.71 |
| Allowance for loan losses | (98030) |  |  | (82027) |  |  | (84681) |  |  |
| Noninterest-earning assets | 737871 |  |  | 607920 |  |  | 620484 |  |  |
| **Total assets** | $11108430 |  |  | $9750605 |  |  | $9745853 |  |  |
| **Interest-bearing liabilities:** |  |  |  |  |  |  |  |  |  |
| Money market deposits | 2016336 | 15467 | 3.08 | 1572287 | 11287 | 2.91 | 1554210 | 13099 | 3.39 |
| Savings deposits | 777951 | 6172 | 3.18 | 656789 | 5227 | 3.23 | 481033 | 3893 | 3.25 |
| Time deposits | 2662411 | 26636 | 4.01 | 2480990 | 25154 | 4.11 | 2587706 | 28898 | 4.49 |
| Other interest-bearing deposits | 1669361 | 11964 | 2.87 | 1659055 | 12324 | 3.01 | 1685924 | 16196 | 3.86 |
| **Total interest-bearing deposits** | 7126059 | 60239 | 3.39 | 6369121 | 53992 | 3.44 | 6308873 | 62086 | 3.96 |
| Borrowings | 723303 | 3530 | 1.96 | 686391 | 3725 | 2.20 | 787256 | 5150 | 2.63 |
| Subordinated debentures | 170802 | 3361 | 7.89 | 79988 | 1298 | 6.58 | 79609 | 1311 | 6.62 |
| Finance lease | 1139 | 17 | 5.99 | 1210 | 18 | 6.03 | 1416 | 21 | 5.96 |
| **Total interest-bearing liabilities** | 8021303 | 67147 | 3.36 | 7136710 | 59033 | 3.35 | 7177154 | 68568 | 3.84 |
| Noninterest-bearing demand deposits | 1680653 |  |  | 1305722 |  |  | 1256251 |  |  |
| Other liabilities | 62220 |  |  | 51800 |  |  | 91827 |  |  |
| **Total noninterest-bearing liabilities** | 1742873 |  |  | 1357522 |  |  | 1348078 |  |  |
| Stockholders' equity | 1344254 |  |  | 1254373 |  |  | 1220621 |  |  |
| **Total liabilities and stockholders' equity** | $11108430 |  |  | $9748605 |  |  | $9745853 |  |  |
| Net interest income (tax equivalent basis) |  | 79810 |  |  | 66580 |  |  | 62255 |  |
| Net interest spread <sup>(5)</sup> |  |  | 2.27% |  |  | 2.17% |  |  | 1.87% |
| Net interest margin <sup>(6)</sup> |  |  | 3.06% |  |  | 2.93% |  |  | 2.72% |
| Tax equivalent adjustment |  | (927) |  |  | (824) |  |  | (816) |  |
| Net interest income |  | $78883 |  |  | $65756 |  |  | $61439 |  |

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------

<sup>(1)</sup> Average balances are calculated on amortized cost.

<sup>(2)</sup> Interest income is presented on a tax equivalent basis using 21% federal tax rate.

<sup>(3)</sup> Includes loan fee income.

<sup>(4)</sup> Loans include nonaccrual loans.

<sup>(5)</sup> Represents difference between the average yield on interest-earning assets and the average cost of interest-bearing liabilities and is presented on a tax equivalent basis.

<sup>(6)</sup> Represents net interest income on a tax equivalent basis divided by average total interest-earning assets.

<sup>(7)</sup> Rates are annualized.