4 unchanged sentences
(in thousands, except for share data)
−Removed: September 30,
Cash and due from banks
8 unchanged sentences
18,859 20,092
+Added: Loans held-for-sale
Loans receivable
38 unchanged sentences
Authorized 5,000,000 shares;
−Removed: issued 115,000 shares as of September 30, 2024 and as of December 31, 2023;
−Removed: outstanding 115,000 shares as of September 30, 2024 and as of December 31, 2023
+Added: issued 115,000 shares as of March 31, 2025 and as of December 31, 2024;
+Added: outstanding 115,000 shares as of March 31, 2025 and as of December 31, 2024
110,927 110,927
1 unchanged sentence
Authorized 100,000,000 shares;
−Removed: issued 42,253,765 shares as of September 30, 2024 and 42,122,948 shares as of December 31, 2023;
−Removed: outstanding 38,368,217 shares as of September 30, 2024 and 38,519,770 as of December 31, 2023
+Added: issued 42,355,523 shares as of March 31, 2025 and 42,255,865 shares as of December 31, 2024;
+Added: outstanding 38,469,975 shares as of March 31, 2025 and 38,370,317 as of December 31, 2024
586,946 586,946
3 unchanged sentences
643,265 631,446
−Removed: Treasury stock, at cost 3,885,548 common shares as of September 30, 2024 and 3,603,178 as of December 31, 2023
+Added: Treasury stock, at cost:
+Added: 3,885,548 common shares as of March 31, 2025 and December 31, 2024
( 76,116 ) ( 76,116 )
10 unchanged sentences
Three Months Ended
−Removed: Nine Months Ended
−Removed: September 30,
−Removed: September 30,
(dollars in thousands, except for per share data)
13 unchanged sentences
Net gains on sale of loans held-for-sale
−Removed: Net gains (losses) on equity securities
+Added: Net gains on equity securities
Total noninterest income
7 unchanged sentences
Merger expenses
+Added: Bank owned life insurance restructuring charge
Amortization of core deposit intangibles
11 unchanged sentences
Three Months Ended
−Removed: Nine Months Ended
−Removed: September 30,
−Removed: September 30,
(dollars in thousands)
−Removed: $ 17,161 $ 21,407 $ 53,422 $ 67,730
Other comprehensive income (loss), net of tax:
Net unrealized holding gains (losses) on available-for-sale securities arising during the period
−Removed: 18,894 ( 23,108 ) 6,665 ( 25,973 )
Net unrealized (losses) gains on cash flow hedges
−Removed: ( 13,433 ) 3,479 ( 8,401 ) 4,768
Pension plan adjustments
−Removed: Total Other comprehensive income (loss), net of tax
−Removed: 5,491 ( 19,577 ) ( 1,644 ) ( 21,050 )
+Added: Total other comprehensive loss, net of tax
Total comprehensive income
−Removed: $ 22,652 $ 1,830 $ 51,778 $ 46,680
See accompanying notes to unaudited consolidated financial statements.
2 unchanged sentences
CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS ’ EQUITY
−Removed: Three Months Ended September 30, 2024
−Removed: Comprehensive
−Removed: Stockholders’
−Removed: (in thousands, except share data)
−Removed: (Loss) Income
−Removed: Balance as of June 30, 2024
−Removed: $ 110,927 $ 586,946 $ 33,955 $ 610,759 $ ( 76,116 ) $ ( 42,244 ) $ 1,224,227
−Removed: - - - 17,161 - - 17,161
−Removed: Other comprehensive income, net of tax
−Removed: - - - - - 5,491 5,491
−Removed: Cash dividends paid on preferred stock ($ 0.328125 per depositary share)
−Removed: - - - ( 1,509 ) - - ( 1,509 )
−Removed: Cash dividends paid on common stock ($ 0.18 per share)
−Removed: - - - ( 6,914 ) - - ( 6,914 )
−Removed: Net shares issued in satisfaction of deferred stock units earned ( 3,938 shares)
−Removed: - - - - - - -
−Removed: Forfeitures of restricted stock grants ( 790 shares)
−Removed: - - - - - - -
−Removed: Share redemption for tax withholdings on performance units and deferred stock units earned
−Removed: - - ( 79 ) - - - ( 79 )
−Removed: Stock-based compensation expense
−Removed: - - 1,119 - - - 1,119
−Removed: Balance as of September 30, 2024
−Removed: $ 110,927 $ 586,946 $ 34,995 $ 619,497 $ ( 76,116 ) $ ( 36,753 ) $ 1,239,496
−Removed: Three Months Ended September 30, 2023
−Removed: Comprehensive
−Removed: Stockholders’
−Removed: (in thousands, except share data)
−Removed: (Loss) Income
−Removed: Balance as of June 30, 2023
−Removed: $ 110,927 $ 586,946 $ 30,740 $ 566,498 $ ( 61,877 ) $ ( 33,837 ) $ 1,199,397
−Removed: - - - 21,407 - - 21,407
−Removed: Other comprehensive loss, net of tax
−Removed: - - - - - ( 19,577 ) ( 19,577 )
−Removed: Cash dividends declared on preferred stock ($ 0.328125 per depositary share)
−Removed: - - - ( 1,509 ) - - ( 1,509 )
−Removed: Cash dividends declared on common stock ($ 0.17 per share)
−Removed: - - - ( 6,620 ) - - ( 6,620 )
−Removed: Exercise of stock options ( 646 shares)
−Removed: - - 11 - - - 11
−Removed: Net shares issued in satisfaction of deferred stock units earned ( 3,938 shares)
−Removed: - - - - - - -
−Removed: Restricted stock grants, net of forfeitures ( 2,477 shares)
−Removed: - - - - - - -
−Removed: Repurchase of treasury stock ( 316,789 shares)
−Removed: - - - - ( 6,231 ) - ( 6,231 )
−Removed: Stock-based compensation expense
−Removed: - - 1,276 - - - 1,276
−Removed: Balance as of September 30, 2023
−Removed: $ 110,927 $ 586,946 $ 32,027 $ 579,776 $ ( 68,108 ) $ ( 53,414 ) $ 1,188,154
−Removed: Nine Months Ended September 30, 2024
+Added: Three Months Ended March 31, 2025
Comprehensive
21 unchanged sentences
- - ( 1,627 ) - - - ( 1,627 )
−Removed: Repurchase of treasury stock ( 282,370 shares)
−Removed: - - - - ( 5,820 ) - ( 5,820 )
Stock-based compensation expense
- - 1,287 - - - 1,287
−Removed: Balance as of September 30, 2024
+Added: Balance as of March 31, 2025
$ 110,927 $ 586,946 $ 36,007 $ 643,265 $ ( 76,116 ) $ ( 48,090 ) $ 1,252,939
−Removed: Nine Months Ended September 30, 2023
+Added: CONNECTONE BANCORP, INC.
+Added: AND SUBSIDIARIES
+Added: CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS ’ EQUITY
+Added: Three Months Ended March 31, 2024
Comprehensive
11 unchanged sentences
- - - ( 6,548 ) - - ( 6,548 )
−Removed: Exercise of stock options ( 7,388 shares)
−Removed: - - 96 - - - 96
Restricted stock grants, net of forfeitures ( 36,446 shares)
8 unchanged sentences
- - ( 1,324 ) - - - ( 1,324 )
−Removed: Repurchase of treasury stock ( 801,952 shares)
+Added: Stock-compensation expense
- - 1,008 - - - 1,008
−Removed: Stock-based compensation expense
+Added: Repurchase of treasury stock ( 282,370 shares)
- - - - ( 5,820 ) - ( 5,820 )
−Removed: Balance as of September 30, 2023
+Added: Balance as of March 31, 2024
$ 110,927 $ 586,946 $ 32,866 $ 600,118 $ ( 76,116 ) $ ( 38,132 ) $ 1,216,609
3 unchanged sentences
CONSOLIDATED STATEMENTS OF CASH FLOWS
−Removed: Nine Months Ended
−Removed: September 30,
+Added: Three Months Ended
(dollars in thousands)
3 unchanged sentences
Provision for credit losses
+Added: Loss on bank owned life insurance policy exchange
Amortization of intangibles
4 unchanged sentences
Stock-based compensation
−Removed: (Gains) losses on equity securities, net
+Added: Gains on equity securities, net
Gains on sale of loans held-for-sale, net
1 unchanged sentence
Proceeds from sale of loans held-for-sale
−Removed: Loss on sale of other real estate owned
Increase in cash surrender value of bank owned life insurance
1 unchanged sentence
Amortization of subordinated debentures issuance costs
−Removed: Decrease (increase) in accrued interest receivable
+Added: Increase in accrued interest receivable
Net change in operating leases
Increase in other assets
−Removed: Decrease in other liabilities
+Added: (Decrease) increase in other liabilities
Net cash provided by operating activities
3 unchanged sentences
Purchase of equity securities
−Removed: Net redemptions (purchases) of restricted investment in bank stocks
−Removed: Payments on loans held-for-sale
−Removed: Net decrease (increase) in loans
−Removed: Proceeds from life insurance death benefits
+Added: Proceeds from equity securities sold
+Added: Net redemptions of restricted investment in bank stocks
+Added: Net decrease in loans
+Added: Proceeds from bank owned life insurance
Purchases of premises and equipment
−Removed: Proceeds from sale of OREO
−Removed: Net cash provided by (used in) investing activities
+Added: Net cash provided by investing activities
Cash flows from financing activities
2 unchanged sentences
Repayments of FHLB borrowings
−Removed: Repayments of subordinated debt
Cash dividends on preferred stock
1 unchanged sentence
Repurchase of treasury stock
−Removed: Proceeds from exercise of stock options
Share redemption for tax withholdings on performance units and deferred stock units earned
6 unchanged sentences
Interest paid on deposits and borrowings
−Removed: Supplemental disclosures of noncash activities
−Removed: Transfer of loans from held-for-sale to held-for-investment
−Removed: Transfer of loans from held-for-investment to held-for-sale
See accompanying notes to unaudited consolidated financial statements.
22 unchanged sentences
All significant intercompany accounts and transactions have been eliminated from the accompanying consolidated financial statements
−Removed: FASB ASC 28, “Segment Reporting,” requires companies to report certain information about operating segments.
−Removed: The Company is managed as one segment:
−Removed: a community bank.
−Removed: All decisions including but not limited to loan growth, deposit funding, interest rate risk, credit risk and pricing are determined after assessing the effect on the totality of the organization.
−Removed: For example, loan growth is dependent on the ability of the organization to fund this growth through deposits or other borrowings.
−Removed: As a result, the Company is managed as one operating segment.
+Added: Segment Reporting
+Added: The Company’s operations are solely in the financial services industry.
+Added: The Company provides a range of regional community banking services to commercial and retail clients.
+Added: The Company's reportable segment is determined by the Chief Executive Officer, who is designated the Chief Operating Decision Maker ("CODM"), based upon information about the Company's products and services offered, primarily it's banking operations.
+Added: The segment is also distinguished by the level of information provided to the CODM, who uses such information to review performance of various components of the business (such as branches and the subsidiary bank), which are then aggregated if operating performance, products/services, and customers are similar.
+Added: The CODM will evaluate the financial performance of the Company's business components such as by evaluating revenue streams, significant expenses, and budget to actual results in assessing the Company's segment and in the determination of allocating resources.
+Added: The CODM uses revenue streams to evaluate product pricing and significant expenses to assess performance and evaluate return on assets.
+Added: The CODM uses consolidated net income to benchmark the Company against its competitors.
+Added: The benchmarking analysis coupled with monitoring of budget to actual results are used in assessment of performance and in establishing compensation.
+Added: Loans, investments, and deposits provide the revenues in the banking operation.
+Added: Interest expense, provision for credit losses, and payroll provide the significant expenses in the banking operation.
+Added: All operations are domestic.
+Added: See Note 14 for disclosures related to the reportable segment.
Use of Estimates
9 unchanged sentences
Adoption of New Accounting Standards in 2025
−Removed: In June 2022, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2022 - 03, “Fair Value Measurement (Topic 820 ):
−Removed: Fair Value Measurement of Equity Securities Subject to Contractual Sale Restrictions” (“ASU 2022 - 03” ).
−Removed: ASU 2022 - 03 clarifies that a contractual restriction on the sale of an equity security is not considered part of the unit of account of the equity security and, therefore, is not considered in measuring fair value.
−Removed: We adopted ASU 2022 - 03 on January 1, 2024 and it did not have a material effect on the Company’s financial statements.
−Removed: Newly Issued, But Not Yet Effective Accounting Standards
In December 2023, the Financial Accounting Standards Board (“FASB”) issued ASU 2023 - 09, Income Taxes (Topic 740 ):
6 unchanged sentences
1 ) Income (or loss) from continuing operations before income tax expense (or benefit) disaggregated between domestic and foreign and 2 ) Income tax expense (or benefit) from continuing operations disaggregated by federal (national), state, and foreign.
−Removed: ASU 2023 - 09 is effective for the Company beginning January 1, 2025.
−Removed: The Company is evaluating the effect that ASU 2023 - 09 will have on its consolidated financial statements.
+Added: The Company adopted ASU 2023 - 09 on January 1, 2025.
+Added: Newly Issued, But Not Yet Effective Accounting Standards
+Added: In November 2024, the FASB issued Accounting Standards Update 2024 - 03, "Income Statement - Reporting Comprehensive Income - Expense Disaggregation Disclosures (Subtopic 220 - 40 )" ("ASU 2024 - 03" ).
+Added: ASU 2024 - 03 requires public entities to provide disaggregated disclosures, in the notes to the financial statements, of certain categories of expenses that are included in expense line items on the face of the income statement.
+Added: ASU 2024 - 03 is effective for the Company on January 1, 2027.
+Added: The Company is currently not expecting the ASU to have a material effect on the consolidated financial statements and footnotes.
CONNECTONE BANCORP, INC.
6 unchanged sentences
Under the terms of the agreement, First of Long Island shareholders will receive 0.5175 shares of Parent Corporation common stock for each share of First of Long Island common stock.
−Removed: The transaction is presently valued at approximately $ 284 million in aggregate based upon the closing common stock price of $ 23.97 for ConnectOne as of September 4, 2024.
+Added: The transaction is valued at approximately $ 288 million in aggregate based upon the closing common stock price of $ 24.31 for ConnectOne as of March 31, 2025.
+Added: The final transaction value is subject to change based on the fluctuations in the market price of ConnectOne common stock prior to the closing of the acquisition.
+Added: On February 14, 2025 , at separate special meetings, the shareholders of both companies approved proposals relating to the pending merger of the Parent Corporation and First of Long Island.
Earnings per Common Share
5 unchanged sentences
Three Months Ended
−Removed: Nine Months Ended
−Removed: September 30,
−Removed: September 30,
(dollars in thousands, except for per share data)
12 unchanged sentences
Incremental shares from assumed conversions of options, performance units and restricted shares
−Removed: 206 135 185 135
Weighted average common and equivalent shares outstanding
2 unchanged sentences
$ 0.49 $ 0.41
−Removed: 0.41 0.51 1.27 1.61
−Removed: There were no antidilutive share equivalents during the nine months ended September 30, 2024 and September 30, 2023 .
+Added: There were no antidilutive share equivalents during the three months ended March 31, 2025 and March 31, 2024 .
CONNECTONE BANCORP, INC.
2 unchanged sentences
Investment Securities
−Removed: All of the Company’s investment securities are classified as available-for-sale as of September 30, 2024 and December 31, 2023 .
+Added: All of the Company’s investment securities are classified as available-for-sale as of March 31, 2025 and December 31, 2024 .
Investment securities available-for-sale are reported at fair value with unrealized gains or losses included in stockholders’ equity, net of tax.
−Removed: Accordingly, the carrying value of such securities reflects their fair value as of September 30, 2024 and December 31, 2023 .
+Added: Accordingly, the carrying value of such securities reflects their fair value as of March 31, 2025 and December 31, 2024 .
Fair value is based upon either quoted market prices, or in certain cases where there is limited activity in the market for a particular instrument, assumptions are made to determine their fair value.
See Note 7 of the Notes to Consolidated Financial Statements for further discussion.
−Removed: The following tables present information related to the Company’s portfolio of securities available-for-sale as of September 30, 2024 and December 31, 2023 .
+Added: The following tables present information related to the Company’s portfolio of securities available-for-sale as of March 31, 2025 and December 31, 2024 .
(dollars in thousands)
−Removed: September 30, 2024
+Added: March 31, 2025
Investment securities available-for-sale:
39 unchanged sentences
Investment Securities – (continued)
−Removed: Investment securities having a carrying value of approximately $ 201.8 million and $ 358.0 million as of September 30, 2024 and December 31, 2023 , respectively, were pledged to secure public deposits, borrowings, repurchase agreements, access to unutilized Federal Reserve Discount Window, Bank Term Funding Program ("BTFP") borrowings, and access to unutilized Federal Home Loan Bank advances and for other purposes required or permitted by law.
−Removed: The BTFP was a temporary facility of the Federal Reserve and expired on March 11, 2024, contributing to the decrease in pledged securities as noted above.
−Removed: As of September 30, 2024 and December 31, 2023 , there were no holdings of securities of any one issuer, other than the U.S.
+Added: Investment securities having a carrying value of approximately $ 368.8 million and $ 184.0 million as of March 31, 2025 and December 31, 2024 , respectively, were pledged to secure public deposits, borrowings, repurchase agreements, access to unutilized Federal Reserve Discount Window borrowings and Federal Home Loan Bank advances and for other purposes required or permitted by law.
+Added: As of March 31, 2025 and December 31, 2024 , there were no holdings of securities of any one issuer, other than the U.S.
Government and its agencies, in an amount greater than 10% of stockholders’ equity.
−Removed: The following table presents information for investments in securities available-for-sale as of September 30, 2024 , based on scheduled maturities.
+Added: The following table presents information for investments in securities available-for-sale as of March 31, 2025 , based on scheduled maturities.
Actual maturities can be expected to differ from scheduled maturities due to prepayment or early call options of the issuer.
Securities not due at a single maturity date are shown separately.
−Removed: September 30, 2024
+Added: March 31, 2025
(dollars in thousands)
13 unchanged sentences
$ 724,723 $ 636,806
−Removed: There were no realized gains or losses on securities during the nine months ended September 30, 2024 and September 30, 2023 .
+Added: There were no realized gains or losses on investment securities available for sale during the three months ended March 31, 2025 and March 31, 2024 .
CONNECTONE BANCORP, INC.
2 unchanged sentences
Investment Securities – (continued)
−Removed: Impairment Analysis of Available-for-Sale Debt Securities
−Removed: The following tables indicate securities in an unrealized loss position for which an allowance for credit losses (“ACL”) has not been recorded, aggregated by investment category and by the length of continuous time individual securities have been in an unrealized loss position as of September 30, 2024 and December 31, 2023 .
−Removed: September 30, 2024
+Added: The following tables indicate securities in an unrealized loss position for which an allowance for credit losses (“ACL”) has not been recorded, aggregated by investment category and by the length of continuous time individual securities have been in an unrealized loss position as of March 31, 2025 and December 31, 2024 .
+Added: March 31, 2025
Less than 12 Months
14 unchanged sentences
591 ( 7 ) 591 ( 7 )
−Removed: Total temporarily impaired securities
+Added: Total investment securities available for sale
$ 545,720 $ ( 89,079 ) $ 54,761 $ ( 1,119 ) $ 490,959 $ ( 87,960 )
17 unchanged sentences
885 ( 7 ) - - 885 ( 7 )
−Removed: Total temporarily impaired securities
+Added: Total investment securities available for sale
$ 554,720 $ ( 96,074 ) $ 60,543 $ ( 1,004 ) $ 494,177 $ ( 95,070 )
4 unchanged sentences
The Company has elected to exclude accrued interest from the amortized cost of its investment securities available-for-sale.
−Removed: Accrued interest receivable for investment securities available-for-sale totaled $ 2.2 million and $ 2.3 million, as of September 30, 2024 and December 31, 2023 respectively.
+Added: Accrued interest receivable for investment securities available-for-sale totaled $ 2.3 million as of both March 31, 2025 and December 31, 2024 .
The Company evaluates securities in an unrealized loss position for impairment related to credit losses on at least a quarterly basis.
8 unchanged sentences
Any impairment that has not been recorded through an allowance for credit losses is recognized in other comprehensive income, net of applicable taxes.
−Removed: No allowance for credit losses for available-for-sale securities was recorded as of September 30, 2024 .
+Added: No allowance for credit losses for available-for-sale securities was recorded as of March 31, 2025 .
Federal agency obligations, residential mortgage-backed pass-through securities and commercial mortgage-backed pass-through securities are issued by U.S.
20 unchanged sentences
The change in fair value of the hedging instrument that is included in the assessment of hedge effectiveness is presented in the same income statement line item that is used to present the earnings effect of the hedged item.
−Removed: As of September 30, 2024, the Bank was not utilizing fair value hedges.
+Added: As of March 31, 2025 , the Bank was not utilizing fair value hedges.
CONNECTONE BANCORP, INC.
16 unchanged sentences
No payments are required if the index rate is at, or below, the cap rate on the sold or purchased interest rate cap agreements.
−Removed: Net interest income recorded on these swap and interest rate cap transactions totaled approximately $ 5.6 million and $ 16.9 million and $ 5.5 million and $ 14.6 million during the three and nine months ended September 30, 2024 and September 30, 2023 , respectively, and is recorded as a component of either interest expense on FHLB Advances or on brokered certificates of deposit.
+Added: Interest income recorded on these swap and interest rate cap transactions totaled approximately $ 4.1 million and $ 5.6 million during the three months ended March 31, 2025 and March 31, 2024 , respectively, and is recorded as a component of either interest expense on FHLB Advances or on brokered certificates of deposit.
CONNECTONE BANCORP, INC.
3 unchanged sentences
The following table presents the net gains (losses) recorded in other comprehensive income and the Consolidated Statements of Income relating to the cash flow hedge derivative instruments for the periods indicated:
−Removed: Nine Months Ended September 30, 2024
+Added: Three Months Ended March 31, 2025
Amount of gain (loss) recognized in OCI (Effective Portion)
4 unchanged sentences
$ ( 3,795 ) $ ( 4,142 ) $ -
−Removed: Nine Months Ended September 30, 2023
+Added: Three Months Ended March 31, 2024
Amount of gain (loss) recognized in OCI (Effective Portion)
4 unchanged sentences
$ 12,880 $ ( 5,629 ) $ -
−Removed: The following table reflects the cash flow hedges included in the consolidated statements of condition as of September 30, 2024 and December 31, 2023 :
−Removed: September 30, 2024
+Added: The following table reflects the cash flow hedges included in the consolidated statements of condition as of March 31, 2025 and December 31, 2024 :
+Added: March 31, 2025
December 31, 2024
8 unchanged sentences
Loans and the Allowance for Credit Losses
−Removed: Loans Receivable – The following table sets forth the composition of the Company’s loan portfolio segments, including net deferred loan fees, as of September 30, 2024 and December 31, 2023 :
−Removed: September 30, 2024 December 31, 2023
+Added: Loans Receivable – The following table sets forth the composition of the Company’s loan portfolio segments, including net deferred loan fees, as of March 31, 2025 and December 31, 2024 :
+Added: March 31, 2025 December 31, 2024
(dollars in thousands)
11 unchanged sentences
$ 8,201,134 $ 8,274,810
−Removed: As of September 30, 2024 and December 31, 2023 , loans totaling approximately $ 5.9 billion and $ 5.8 billion, respectively were pledged to secure borrowings from the FHLB of New York and the Federal Reserve Bank of New York.
−Removed: Loans held-for-sale - There were no loans-held-for-sale as of either September 30, 2024 or December 31, 2023.
−Removed: Loans Receivable on Nonaccrual Status - The following tables present the carrying value of nonaccrual loans with an ACL and the carrying value of nonaccrual loans without an ACL as of September 30, 2024 and December 31, 2023 :
−Removed: September 30, 2024
+Added: As of March 31, 2025 and December 31, 2024 , loans totaling approximately $ 5.6 billion and $ 5.8 billion, respectively, were pledged to secure borrowings from the FHLB of New York and the Federal Reserve Bank of New York.
+Added: Loans held-for-sale – The following table sets forth the composition of the Company's loans held-for-sale portfolio as of March 31, 2025 and December 31, 2024 .
+Added: March 31, 2025
+Added: December 31, 2024
+Added: (dollars in thousands)
+Added: Residential real estate
+Added: Loans Receivable on Nonaccrual Status - The following tables present the carrying value of nonaccrual loans with an ACL and the carrying value of nonaccrual loans without an ACL as of March 31, 2025 and December 31, 2024 :
+Added: March 31, 2025
Nonaccrual loans with ACL
20 unchanged sentences
3,822 32,664 36,486
+Added: Commercial construction
+Added: - 2,204 2,204
Residential real estate
19 unchanged sentences
Generally, loans up for renewal are subject to a full credit evaluation before the renewal is granted and such loans are considered current period originations for purposes of the table below.
−Removed: The following table presents loans by origination, risk designation and gross charge-offs as of and during the nine months ended September 30, 2024 (dollars in thousands):
+Added: The following table presents loans by origination, risk designation and gross charge-offs as of and during the three months ended March 31, 2025 (dollars in thousands):
Term loans amortized cost basis by origination year
30 unchanged sentences
$ - $ - $ - $ - $ - $ - $ - $ -
+Added: Residential real estate
$ 8,979 $ 20,915 $ 14,486 $ 38,961 $ 21,758 $ 110,309 $ 35,389 $ 250,797
93 unchanged sentences
Collateral Dependent Loans :
−Removed: Loans which meet certain criteria are individually evaluated as part of the process of calculating the allowance for credit losses.
−Removed: The evaluation is determined on an individual basis using the fair value of the collateral as of the reporting date.
−Removed: The following table presents collateral dependent loans that were individually evaluated as of September 30, 2024 and December 31, 2023 :
−Removed: September 30, 2024
+Added: The following tables present the amortized cost basis of collateral-dependent loans by loan segment as of March 31, 2025 and December 31, 2024 :
+Added: March 31, 2025
Real Estate Other
23 unchanged sentences
Loans and the Allowance for Credit Losses – (continued)
−Removed: Aging Analysis - The following table provides an analysis of the aging of the loans by class, excluding the effect of net deferred fees, which are past due as of September 30, 2024 and December 31, 2023 :
−Removed: September 30, 2024
+Added: Aging Analysis - The following tables present the aging of the amortized cost in past-due loans as of March 31, 2025 and December 31, 2024 :
+Added: March 31, 2025
30-59 Days Past Due
12 unchanged sentences
$ 14,829 $ 133 $ - $ 49,860 $ 64,822 $ 8,141,521 $ 8,206,343
−Removed: As of September 30, 2024, one loan for $ 3.2 million was past due more than 90 days and still accruing;
−Removed: the loan is well-secured at a loan-to-value of approximately 65 % and is in the process of collection.
December 31, 2024
17 unchanged sentences
Loans and the Allowance for Credit Losses – (continued)
−Removed: The following tables detail, at the period-end presented, the amount of gross loans (excluding loans held-for-sale) that are evaluated individually, collectively, those acquired with deteriorated quality, and the related portion of the allowance for credit losses that are allocated to each loan portfolio segment:
−Removed: September 30, 2024
+Added: The following tables detail the amount of gross loans that are individually analyzed, collectively evaluated, and loans acquired with deteriorated quality, and the related portion of the allowance for credit losses for loans that are allocated to each loan portfolio segment.
+Added: March 31, 2025
Commercial real estate Commercial construction
40 unchanged sentences
Loans and the Allowance for Credit Losses – (continued)
−Removed: Activity in the Company’s ACL for loans for the three and nine months ended September 30, 2024 is summarized in the tables below.
−Removed: Three Months Ended September 30, 2024
+Added: Activity in the Company’s ACL for loans for the three months ended March 31, 2025 and 2024 are summarized in the tables below.
+Added: Three Months Ended March 31, 2025
Commercial real estate
2 unchanged sentences
(dollars in thousands)
−Removed: Balance as of June 30, 2024
+Added: Balance as of December 31, 2024
$ 18,278 $ 54,777 $ 5,064 $ 4,561 $ 5 $ 82,685
1 unchanged sentence
155 - - - - 155
−Removed: Provision for (reversal of) credit losses - loans
+Added: (Reversal of) provision for credit losses - loans
( 402 ) 3,364 ( 34 ) 191 ( 1 ) 3,118
−Removed: Balance as of September 30, 2024
+Added: Balance as of March 31, 2025
$ 18,031 $ 54,586 $ 5,030 $ 4,752 $ 4 $ 82,403
−Removed: Nine Months Ended September 30, 2024
+Added: Three Months Ended March 31, 2024
Commercial real estate
8 unchanged sentences
380 3,401 272 6 ( 2 ) 4,057
−Removed: Balance as of September 30, 2024
+Added: Balance as of March 31, 2024
$ 20,735 $ 52,794 $ 5,011 $ 4,326 $ 3 $ 82,869
3 unchanged sentences
Loans and the Allowance for Credit Losses – (continued)
−Removed: Activity in the Company’s ACL for loans for the three and nine months ended September 30, 2023 is summarized in the table below.
−Removed: Three Months Ended September 30, 2023
−Removed: Commercial real estate
−Removed: Commercial construction
−Removed: Residential real estate
+Added: Loan Modifications to Borrowers Experiencing Financial Difficulty:
+Added: The following table presents the amortized cost basis of loans to borrowers experiencing financial difficulty that were modified during the last 12 months through March 31, 2025.
+Added: The modification percentage represents the total modified loans as compared to the total gross loan balances as of March 31, 2025 .
+Added: Amortized Cost Basis at Time of Modification
+Added: Term Extension
+Added: Payment Deferral
+Added: Interest Rate Reduction
+Added: Payment Reduction
+Added: Gross Loans at March 31, 2025
+Added: Modification % (Modified Loans/Gross Loans)
+Added: March 31, 2025
(dollars in thousands)
−Removed: Balance as of June 30, 2023
$ 17,641 $ - $ - $ 333 $ 17,974 $ 1,492,920 1.20 %
+Added: Commercial real estate
- - 63,804 - 63,804 5,837,671 1.09
−Removed: Provision for (reversal of) credit losses - loans
+Added: Residential real estate
1,412 - - - 1,412 256,555 0.55
−Removed: Balance as of September 30, 2023
$ 19,053 $ - $ 63,804 $ 333 $ 83,190 $ 7,587,146 1.10 %
−Removed: Nine Months Ended September 30, 2023
+Added: The following table presents the financial effect of the loan modifications presented above to borrowers experiencing financial difficulty during the last 12 months through March 31, 2025.
+Added: Weighted Average Term Extension (Months)
+Added: Weighted Average Payment Deferral (Months)
+Added: Weighted Average Interest Rate Reduction
+Added: Weighted Average Payment Reduction
+Added: March 31, 2025
+Added: (dollars in thousands)
Commercial real estate
−Removed: Commercial construction
Residential real estate
−Removed: (dollars in thousands)
−Removed: Balance as of December 31, 2022
142 - 0.1 % $ 6
−Removed: ( 6,117 ) ( 1,954 ) - ( 18 ) - ( 8,089 )
−Removed: 9 - - 69 7 85
−Removed: Provision for (reversal of) credit losses - loans
−Removed: 5,056 945 191 ( 462 ) ( 9 ) 5,721
−Removed: Balance as of September 30, 2023
−Removed: $ 27,851 $ 52,733 $ 3,909 $ 3,732 $ 5 $ 88,230
CONNECTONE BANCORP, INC.
2 unchanged sentences
Loans and the Allowance for Credit Losses – (continued)
−Removed: Loan Modifications to Borrowers Experiencing Financial Difficulty:
−Removed: The following tables presents the amortized cost basis at the end of the reporting period of the loan modifications to borrowers experiencing financial difficulty and the percentage of the amortized cost basis of loans that were modified to borrowers experiencing financial difficulty as compared to the gross loans of the relevant loan segment.
−Removed: The total percentage represents the total modified loans as compared to the total gross loans balance.
−Removed: Three Months Ended
−Removed: September 30, 2024
−Removed: Term Extension
−Removed: Payment Deferral
−Removed: Interest Rate Reduction
−Removed: % of Portfolio Loan Segment
+Added: The Company closely monitors the performance of loans that are modified to borrowers experiencing financial difficulty to understand the effectiveness of its modification efforts.
+Added: The following table presents the performance of such loans that have been modified in the last 12 months through March 31, 2025.
+Added: 30-89 Days Past Due
+Added: 90 Days or Greater Past Due
+Added: March 31, 2025
(dollars in thousands)
1 unchanged sentence
Commercial real estate
−Removed: - - 63,804 63,804 1.11 %
+Added: Residential real estate
$ 83,190 $ - $ -
−Removed: Nine Months Ended
−Removed: September 30, 2024
+Added: There were no modifications to borrowers experiencing financial difficulty during the three months ended March 31, 2025.
+Added: The following table presents the amortized cost basis of loans to borrowers experiencing financial difficulty that were modified during the three months ended March 31, 2024.
+Added: The modification percentage represents the total modified loans as compared to the total gross loan balances as of March 31, 2024 .
+Added: Amortized Cost Basis at Time of Modification
Term Extension
1 unchanged sentence
Interest Rate Reduction
−Removed: % of Portfolio Loan Segment
+Added: Payment Reduction
+Added: Gross Loans at March 31, 2024
+Added: Modification % (Modified Loans/Gross Loans)
+Added: March 31, 2024
(dollars in thousands)
5 unchanged sentences
$ - $ 126 $ - $ - $ 126 $ 7,656,658 0.00 %
−Removed: The above table consists of three commercial loans, nine commercial real estate loans and one residential real estate loan that were modified during the nine months ended September 30, 2024 where the borrowers were experiencing financial difficulty.
−Removed: Two commercial loans were term extensions that combined for a weighted average of six months.
−Removed: One commercial loan was a three -month payment deferral.
−Removed: Nine commercial real estate loans were interest rate reductions with a weighted average change of 0.15 %.
−Removed: The one $ 1.4 million residential real estate loan involved the freezing of a loan commitment, combined with a 10 -year term extension.
CONNECTONE BANCORP, INC.
2 unchanged sentences
Loans and the Allowance for Credit Losses – (continued)
−Removed: Three Months Ended
−Removed: September 30, 2023
−Removed: Term Extension
−Removed: Payment Deferral
−Removed: Interest Rate Reduction
−Removed: % of Portfolio Loan Segment
−Removed: (dollars in thousands)
−Removed: $ - $ - $ - $ - 0.00 %
−Removed: Commercial real estate
−Removed: 211 211 0.00 %
−Removed: $ 211 $ - $ - $ 211 0.00 %
−Removed: Nine Months Ended
−Removed: September 30, 2023
−Removed: Term Extension
−Removed: Payment Deferral
−Removed: Interest Rate Reduction
−Removed: % of Portfolio Loan Segment
+Added: The following table presents the financial effect of the loan modifications presented above to borrowers experiencing financial difficulty during the three months ended March 31, 2024.
+Added: Weighted Average Term Extension (Months)
+Added: Weighted Average Payment Deferral (Months)
+Added: Weighted Average Interest Rate Reduction
+Added: Weighted Average Payment Reduction
+Added: March 31, 2024
(dollars in thousands)
−Removed: $ 44 $ - $ - $ 44 0.00 %
−Removed: Commercial real estate
−Removed: 211 - - 211 0.00 %
−Removed: $ 255 $ - $ - $ 255 0.00 %
−Removed: The above table consists of loans that added a weighted average of 13 years to the maturity of the modified loans, which did not have a material effect on the cash flows.
The Company closely monitors the performance of loans that are modified to borrowers experiencing financial difficulty to understand the effectiveness of its modification efforts.
−Removed: The following tables present the payment status of loans that have been modified in the last twelve months.
−Removed: September 30, 2024
+Added: The following table presents the performance of such loans that have been modified in the three months ended March 31, 2024.
30-89 Days Past Due
−Removed: 90 Days or Greater Past Due and Still Accruing
+Added: 90 Days or Greater Past Due
+Added: March 31, 2024
(dollars in thousands)
$ 126 $ - $ -
−Removed: Commercial real estate
−Removed: Residential real estate
−Removed: $ 100,786 $ - $ -
−Removed: During the nine months ended September 30, 2024 and September 30, 2023 , the Company had no commitments to lend additional funds to borrowers experiencing financial difficulty for which the Company modified the terms of the loans in the form of principal forgiveness, an interest rate reduction, an other-than-insignificant payment delay, or a term extension during the current period.
−Removed: There were no loans to borrowers experiencing financial difficulty that had a payment default during the nine months ended September 30, 2024 and 2023 and were modified in the twelve months prior to that default.
+Added: During the three months ended March 31, 2025 and March 31, 2024 , the Company had no commitments to lend additional funds to borrowers experiencing financial difficulty for which the Company modified the terms of the loans in the form of principal forgiveness, an interest rate reduction, an other-than-insignificant payment delay, or a term extension during the current period.
+Added: There were no loans to borrowers experiencing financial difficulty that had a payment default during the three months ended March 31, 2025 and 2024 and were modified in the twelve months prior to that default.
Default is determined at 90 or more days past due, upon charge-off, or upon foreclosure.
7 unchanged sentences
The provision is recorded within the provision for credit losses on the Company’s income statement.
−Removed: The following table presents a roll forward of the allowance for credit losses for unfunded commitments for the three and nine months ended September 30, 2024 and 2023 :
+Added: The following table presents a roll forward of the allowance for credit losses for unfunded commitments for the three months ended March 31, 2025 and 2024 :
Three Months Ended
Three Months Ended
−Removed: September 30,
−Removed: September 30,
(dollars in thousands)
1 unchanged sentence
$ 2,627 $ 2,811
−Removed: Reversal of allowance for credit losses - unfunded commitments
−Removed: ( 123 ) ( 4 )
−Removed: Balance at end of period
−Removed: $ 2,652 $ 2,815
−Removed: Nine Months Ended
−Removed: Nine Months Ended
−Removed: September 30,
−Removed: September 30,
−Removed: (dollars in thousands)
−Removed: Balance at beginning of period
−Removed: $ 2,811 $ 3,036
−Removed: Reversal of allowance for credit losses - unfunded commitments
−Removed: ( 159 ) ( 221 )
+Added: Provision for (reversal of) credit losses - unfunded commitments
Balance at end of period
5 unchanged sentences
Components of Provision for Credit Losses
−Removed: The following table summarizes the provision for (reversal of) credit losses for the three and nine months ended September 30, 2024 and 2023 :
+Added: The following table summarizes the provision for (reversal of) credit losses for the three months ended March 31, 2025 and 2024 :
Three Months Ended
Three Months Ended
−Removed: September 30,
−Removed: September 30,
(dollars in thousands)
1 unchanged sentence
$ 3,118 $ 4,057
−Removed: Reversal of credit losses - unfunded commitments
−Removed: ( 123 ) ( 4 )
−Removed: Provision for credit losses
−Removed: $ 3,800 $ 1,500
−Removed: Nine Months Ended
−Removed: Nine Months Ended
−Removed: September 30,
−Removed: September 30,
−Removed: (dollars in thousands)
−Removed: Provision for credit losses – loans
−Removed: $ 10,459 $ 5,721
−Removed: Reversal of credit losses - unfunded commitments
−Removed: ( 159 ) ( 221 )
+Added: Provision for (reversal of) credit losses - unfunded commitments
Provision for credit losses
16 unchanged sentences
Assets and Liabilities Measured at Fair Value on a Recurring Basis
−Removed: The following methods and assumptions were used to estimate the fair values of the Company’s assets measured at fair value on a recurring basis as of September 30, 2024 and December 31, 2023 :
+Added: The following methods and assumptions were used to estimate the fair values of the Company’s assets measured at fair value on a recurring basis as of March 31, 2025 and December 31, 2024 :
Investment Securities Available-for-Sale and Equity Securities :
12 unchanged sentences
The majority of market inputs are actively quoted and can be validated through external sources, including brokers, market transactions and third -party pricing services.
−Removed: For financial assets and liabilities measured at fair value on a recurring basis, the fair value measurements by level within the fair value hierarchy used as of September 30, 2024 and December 31, 2023 are as follows:
−Removed: September 30, 2024
+Added: For financial assets and liabilities measured at fair value on a recurring basis, the fair value measurements by level within the fair value hierarchy used as of March 31, 2025 and December 31, 2024 are as follows:
+Added: March 31, 2025
Fair Value Measurements at Reporting Date Using
52 unchanged sentences
Asset-backed securities
−Removed: 1,238 - 1,238 -
Other securities
5 unchanged sentences
$ 670,337 $ 9,910 $ 653,901 $ 6,526
−Removed: There were no transfers between Level 1 and Level 2 during the nine months ended September 30, 2024 and for the year ended December 31, 2023 .
+Added: There were no transfers between Level 1, Level 2 and Level 3 during the three months ended March 31, 2025 and for the year ended December 31, 2024 .
Assets Measured at Fair Value on a Nonrecurring Basis
1 unchanged sentence
These adjustments to fair value usually result from the application of lower of cost or fair value accounting or impairment write-downs of individual assets.
−Removed: The following methods and assumptions were used to estimate the fair values of the Company’s assets measured at fair value on a nonrecurring basis as of September 30, 2024 and December 31, 2023 .
+Added: The following methods and assumptions were used to estimate the fair values of the Company’s assets measured at fair value on a nonrecurring basis as of March 31, 2025 and December 31, 2024 .
Loans Held-for-Sale :
2 unchanged sentences
Management obtains quotes or bids on all or parts of these loans directly from the purchasing financial institutions (Level 2 ).
+Added: As of March 31, 2025 and December 31, 2024, residential mortgage loans held-for sale were $ 0.2 million and $ 0.7 million, respectively
Other loans held-for-sale are carried at the lower of aggregate cost or estimated fair value.
Fair value of these loans is determined based on the terms of the loan, such as interest rate, maturity date, reset term, as well as sales of similar assets (Level 3 ).
+Added: There were no such loans as of March 31, 2025 and December 31, 2024.
CONNECTONE BANCORP, INC.
9 unchanged sentences
Estimates of fair value used for collateral supporting commercial loans generally are based on assumptions not observable in the marketplace and are also based on Level 3 inputs.
−Removed: For assets measured at fair value on a nonrecurring basis, the fair value measurements as of September 30, 2024 and December 31, 2023 are as follows:
+Added: For assets measured at fair value on a nonrecurring basis, the fair value measurements as of March 31, 2025 and December 31, 2024 are as follows:
Fair Value Measurements at Reporting Date Using
Assets measured at fair value on a nonrecurring basis:
−Removed: September 30, 2024 Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3)
+Added: March 31, 2025 Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3)
Collateral dependent loans:
2 unchanged sentences
Commercial real estate
−Removed: 23,136 - - 23,136
Fair Value Measurements at Reporting Date Using
6 unchanged sentences
2,913 - - 2,913
−Removed: Collateral dependent loans – Collateral dependent loans as of September 30, 2024 that required a valuation allowance were $ 25.5 million with a related valuation allowance of $ 1.6 million compared to $ 7.7 million with a related valuation allowance of $ 1.4 million as of December 31, 2023 .
+Added: Collateral dependent loans – Collateral dependent loans as of March 31, 2025 that required a valuation allowance were $ 1.6 million with a related valuation allowance of $ 0.2 million compared to $ 4.7 million with a related valuation allowance of $ 1.1 million as of December 31, 2024 .
CONNECTONE BANCORP, INC.
4 unchanged sentences
Recurring basis
−Removed: The tables below present a reconciliation of all assets measured at fair value on a recurring basis using significant unobservable inputs (Level 3 ) for the nine months ended September 30, 2024 and for the year ended December 31, 2023 :
+Added: The tables below present a reconciliation of all assets measured at fair value on a recurring basis using significant unobservable inputs (Level 3 ) for the three months ended March 31, 2025 and for the year ended December 31, 2024 :
Municipal Securities
2 unchanged sentences
Principal paydowns
−Removed: Change in unrealized gain
−Removed: Ending balance, September 30, 2024
+Added: Change in unrealized gain (loss)
+Added: Ending balance, March 31, 2025
Municipal Securities
2 unchanged sentences
Principal paydowns
−Removed: Changes in unrealized gain
+Added: Changes in unrealized loss
Ending balance, December 31, 2024
−Removed: The following methods and assumptions were used to estimate the fair values of the Company’s assets measured at fair value on a recurring basis as of September 30, 2024 and December 31, 2023 .
+Added: The following methods and assumptions were used to estimate the fair values of the Company’s assets measured at fair value on a recurring basis as of March 31, 2025 and December 31, 2024 .
The table below provides quantitative information about significant unobservable inputs used in fair value measurements within Level 3 hierarchy.
−Removed: September 30, 2024
+Added: March 31, 2025
Valuation Techniques
20 unchanged sentences
The tables below provide quantitative information about significant unobservable inputs used in fair value measurements within Level 3 hierarchy of collateral dependent loans.
−Removed: September 30, 2024
+Added: March 31, 2025
(dollars in thousands)
27 unchanged sentences
Fair Value Measurements and Fair Value of Financial Instruments – (continued)
−Removed: As of September 30, 2024 the fair value measurements presented are consistent with Topic 820, Fair Value Measurement , in which fair value represents exit price.
−Removed: The following presents the carrying amount, fair value, and placement in the fair value hierarchy of the Company’s financial instruments as of September 30, 2024 and December 31, 2023 :
+Added: As of March 31, 2025 the fair value measurements presented are consistent with Topic 820, Fair Value Measurement , in which fair value represents exit price.
+Added: The following presents the carrying amount, fair value, and placement in the fair value hierarchy of the Company’s financial instruments as of March 31, 2025 and December 31, 2024 :
Fair Value Measurements
4 unchanged sentences
(dollars in thousands)
−Removed: September 30, 2024
+Added: March 31, 2025
Financial assets:
69 unchanged sentences
Amounts Reclassified from Accumulated Other Comprehensive Income
−Removed: Amounts Reclassified from Accumulated Other Comprehensive Income
Affected Line item in the Consolidated Statements of Income
−Removed: Three Months Ended September 30,
−Removed: Nine Months Ended September 30,
+Added: Three Months Ended March 31,
Interest income on cash flow hedges
5 unchanged sentences
- 13 Income tax benefit
−Removed: $ ( 30 ) $ ( 52 ) $ ( 92 ) $ ( 155 )
Total reclassification
4 unchanged sentences
Comprehensive (Loss) Income – (continued)
−Removed: Accumulated other comprehensive loss as of September 30, 2024 and December 31, 2023 consisted of the following:
−Removed: September 30, 2024
+Added: Accumulated other comprehensive loss as of March 31, 2025 and December 31, 2024 consisted of the following:
+Added: March 31, 2025
December 31, 2024
9 unchanged sentences
The Company’s stockholders approved the 2017 Equity Compensation Plan (“the Plan”) on May 23, 2017.
−Removed: The Plan eliminates all remaining issuable shares under previous plans and is the only outstanding plan as of September 30, 2024 .
+Added: The Plan eliminates all remaining issuable shares under previous plans and is the only outstanding plan as of March 31, 2025 .
On May 30, 2023, the Company's stockholders approved an amendment to the Plan that increased the maximum number of shares issuable to 1,200,000 .
Grants under the Plan can be in the form of stock options (qualified or non-qualified), restricted shares, deferred stock units or performance units.
−Removed: Shares available for grant and issuance under the Plan as of September 30, 2024 were approximately 336,584 .
+Added: Shares available for grant and issuance under the Plan as of March 31, 2025 were approximately 236,926 .
The Company intends to issue all shares under the Plan in the form of newly issued shares.
−Removed: As of both September 30, 2024 and December, 31, 2023, the Company did not have any outstanding stock options.
+Added: As of both March 31, 2025 and December 31, 2024 , the Company did not have any outstanding stock options.
Restricted stock and deferred stock units typically have a three -year vesting period starting one year after the date of grant with one - third vesting each year, with accelerated vesting upon a change in control.
7 unchanged sentences
Forfeiture rates are not estimated but are recorded as incurred.
−Removed: Stock-based compensation expense for the three and nine months ended September 30, 2024 was $ 1.1 and $ 3.2 million respectively.
−Removed: Stock-based compensation expense for the three and nine months ended September 30, 2023 was $ 1.3 million and $ 3.6 million, respectively.
−Removed: Activity in the Company’s restricted stock for the nine months ended September 30, 2024 was as follows:
−Removed: Nonvested Shares Weighted Average Grant Date Fair Value
+Added: Stock-based compensation expense for the three months ended March 31, 2025 and March 31, 2024 was $ 1.3 million and $ 1.0 million, respectively.
+Added: Activity in the Company’s restricted stock for the three months ended March 31, 2025 was as follows:
+Added: Nonvested Shares
+Added: Weighted Average Grant Date Fair Value
Nonvested as of December 31, 2024
3 unchanged sentences
( 158 ) 19.01
−Removed: Nonvested as of September 30, 2024
+Added: Nonvested as of March 31, 2025
112,986 $ 19.00
3 unchanged sentences
Stock-Based Compensation – (continued)
−Removed: As of September 30, 2024 , there was approximately $ 1.0 million of total unrecognized compensation cost related to nonvested restricted stock granted.
+Added: As of March 31, 2025 , there was approximately $ 1.4 million of total unrecognized compensation cost related to nonvested restricted stock granted.
The cost is expected to be recognized over a weighted average period of 1.4 years.
4 unchanged sentences
Change in estimate
−Removed: ( 10,774 ) 11.93
Vested shares
2 unchanged sentences
( 3,452 ) 19.01
−Removed: Unearned as of September 30, 2024
+Added: Unearned as of March 31, 2025
235,767 383,079 $ 18.74
−Removed: As of September 30, 2024 , the specific number of shares related to performance units that were expected to vest was 181,847 , determined by actual performance in consideration of the established range of the performance targets, which is consistent with the level of expense currently being recognized over the vesting period.
+Added: As of March 31, 2025 , the specific number of shares related to performance units that were expected to vest was 235,767 , determined by actual performance in consideration of the established range of the performance targets, which is consistent with the level of expense currently being recognized over the vesting period.
Should this expectation change, additional compensation expense could be recorded in future periods or previously recognized expense could be reversed.
−Removed: As of September 30, 2024 , the maximum amount of performance units that ultimately could vest if performance targets were exceeded is 302,196 .
−Removed: During the nine months ended September 30, 2024 , 53,041 shares vested.
+Added: As of March 31, 2025 , the maximum amount of performance units that ultimately could vest if performance targets were exceeded is 383,079 .
+Added: During the three months ended March 31, 2025 , 43,331 shares vested.
A total of 23,754 shares were netted from the vested shares to satisfy employee tax obligations.
−Removed: The net shares issued from vesting of performance units during the nine months ended September 30, 2024 were 24,070 shares.
−Removed: As of September 30, 2024 , compensation cost of approximately $ 1.8 million related to non-vested performance units not yet recognized is expected to be recognized over a weighted-average period of 2.0 years.
+Added: The net shares issued from vesting of performance units during the three months ended March 31, 2025 were 19,577 shares.
+Added: As of March 31, 2025 , compensation cost of approximately $ 3.4 million related to non-vested performance units not yet recognized is expected to be recognized over a weighted-average period of 2.3 years.
A summary of the status of unearned deferred stock units and the changes in deferred stock units during the period is presented in the table below:
−Removed: Units (expected) Weighted Average Grant Date Fair Value
+Added: Units (expected)
+Added: Weighted Average Grant Date Fair Value
Unearned as of December 31, 2024
2 unchanged sentences
( 83,489 ) 23.05
−Removed: Forfeited/cancelled/expired
−Removed: ( 7,360 ) 21.53
−Removed: Unearned as of September 30, 2024
+Added: Unearned as of March 31, 2025
178,357 $ 18.45
1 unchanged sentence
A portion of the shares that vest will be netted out to satisfy the tax obligations of the recipient.
−Removed: During the nine months ended September 30, 2024 , 80,889 shares vested.
+Added: During the three months ended March 31, 2025 , 83,489 shares vested.
A total of 44,806 shares were netted from the vested shares to satisfy employee tax obligations.
−Removed: The net shares issued from vesting of deferred stock units during the nine months ended September 30, 2024 were 37,542 shares.
−Removed: As of September 30, 2024 , compensation cost of approximately $ 1.6 million related to non-vested deferred stock units, not yet recognized, is expected to be recognized over a weighted-average period of 1.5 years.
+Added: The net shares issued from vesting of deferred stock units during the three months ended March 31, 2025 were 38,683 shares.
+Added: As of March 31, 2025 , compensation cost of approximately $ 2.6 million related to non-vested deferred stock units, not yet recognized, is expected to be recognized over a weighted-average period of 1.8 years.
CONNECTONE BANCORP, INC.
6 unchanged sentences
Affected Line Item in the Consolidated
−Removed: September 30,
Statements of Income
8 unchanged sentences
$ ( 125 ) $ ( 65 )
−Removed: Nine Months Ended
−Removed: Affected Line Item in the Consolidated
−Removed: September 30,
−Removed: Statements of Income
−Removed: (dollars in thousands)
−Removed: Interest cost
−Removed: 318 330 Salaries and employee benefits
−Removed: Expected return on plan assets
−Removed: ( 642 ) ( 628 ) Salaries and employee benefits
−Removed: Net amortization
−Removed: 129 222 Salaries and employee benefits
−Removed: Total periodic pension income
−Removed: $ ( 195 ) $ ( 76 )
Contributions
−Removed: The Company did not contribute to the Pension Trust during the nine months ended September 30, 2024 .
+Added: The Company did not contribute to the Pension Trust during the three months ended March 31, 2025 .
The Company does not plan on contributing amounts to the Pension Trust for the remainder of 2025.
5 unchanged sentences
Time Deposits
−Removed: As of September 30, 2024 and December 31, 2023 , the Company's total time deposits were $ 2.6 billion and $ 2.5 billion, respectively.
−Removed: Included in time deposits were nonreciprocal brokered time deposits of $ 824.9 million and $ 915.5 million as of September 30, 2024 and December 31, 2023 , respectively.
−Removed: As of September 30, 2024 , the contractual maturities of these time deposits were as follows (dollars in thousands):
+Added: As of each of March 31, 2025 and December 31, 2024 , the Company's total time deposits were $ 2.6 billion.
+Added: Included in time deposits were nonreciprocal brokered time deposits of $ 981.6 million and $ 907.2 million as of March 31, 2025 and December 31, 2024 , respectively.
+Added: As of March 31, 2025 , the contractual maturities of these time deposits were as follows (dollars in thousands):
Time deposits (before net discount)
1 unchanged sentence
Total time deposits (after net discount)
−Removed: The amount of time deposits with balances greater than or equal to $250,000 were $ 832.4 million and $ 643.4 million as of September 30, 2024 and December 31, 2023 , respectively.
+Added: The amount of time deposits with balances greater than or equal to $250,000 was $ 707.8 million and $ 731.0 million as of March 31, 2025 and December 31, 2024 , respectively.
CONNECTONE BANCORP, INC.
3 unchanged sentences
The Company’s FHLB borrowings and weighted average interest rates are summarized below:
−Removed: September 30, 2024
+Added: March 31, 2025
December 31, 2024
10 unchanged sentences
4 years through 5 years
−Removed: - 0.00 25,000 4.18
After 5 years
10 unchanged sentences
All FHLB advances bear fixed rates.
−Removed: The advances as of September 30, 2024 were primarily collateralized by approximately $ 2.5 billion of commercial mortgage loans and securities, net of required over collateralization amounts, under a blanket lien arrangement.
−Removed: As of September 30, 2024 the Company had a remaining borrowing capacity of approximately $ 1.1 billion at FHLB.
+Added: The advances as of March 31, 2025 were primarily collateralized by approximately $ 3.8 billion of commercial mortgage loans and securities, net of required over collateralization amounts, under a blanket lien arrangement.
+Added: As of March 31, 2025 the Company had a remaining borrowing capacity of approximately $ 1.2 billion at FHLB.
CONNECTONE BANCORP, INC.
11 unchanged sentences
Therefore, effective for quarterly interest rate resets after July 3, 2023 the subordinated debentures’ floating rate will be three -month CME Term SOFR plus 2.85 % plus a tenor spread adjustment of 0.26161 %.
−Removed: The rate as of September 30, 2024 was 8.37 %.
+Added: The rate as of March 31, 2025 was 7.40 %.
These subordinated debentures and the related income effects are not eliminated in the consolidated financial statements, as the statutory business trust is not consolidated in accordance with FASB ASC 810 - 10.
Distributions on the subordinated debentures owned by the subsidiary trust have been classified as interest expense in the Consolidated Statements of Income.
−Removed: The following table summarizes the mandatory redeemable trust preferred securities of the Company’s Statutory Trust II as of September 30, 2024 and December 31, 2023 .
−Removed: As of September 30, 2024
+Added: The following table summarizes the mandatory redeemable trust preferred securities of the Company’s Statutory Trust II as of March 31, 2025 and December 31, 2024 .
+Added: As of March 31, 2025
Issuance Date
10 unchanged sentences
The 2020 Notes bear interest at 5.75 % annually from, and including, the date of initial issuance up to, but excluding, June 15, 2025 or the date of earlier redemption, payable semi-annually in arrears on June 15 and December 15 of each year, commencing December 15, 2020.
−Removed: From and including June 15, 2025 through maturity or earlier redemption, the interest rate shall reset quarterly to an interest rate per annum equal to a benchmark rate, which is expected to be Three-Month Term SOFR:
−Removed: (as defined in the Second Supplemental Indenture), plus 560.5 basis points, payable quarterly in arrears on March 15, June 15, September 15 and December 15 of each year, commencing on September 15, 2025.
+Added: From and including June 15, 2025 through maturity or earlier redemption, the interest rate shall reset quarterly to an interest rate per annum equal to a benchmark rate, which is Three-Month Term SOFR:
+Added: (as defined in the Second Supplemental Indenture), plus 560.5 basis points, payable quarterly in arrears on March 15, June 15, September 15 and December 15 of each year, commencing on June 15, 2025.
Notwithstanding the foregoing, if the benchmark rate is less than zero, then the benchmark rate shall be deemed to be zero.
+Added: Segment Reporting
+Added: Accounting policies for segments are the same as those described in Note 1a.
+Added: Segment performance is evaluated using Consolidated Bank net income.
+Added: Information reported internally for performance assessment by the CODM follows, inclusive of reconciliations of significant segment totals to the financial statements:
+Added: Consolidated Bank
+Added: (dollars in thousands)
+Added: Interest income
+Added: $ 124,789 $ 129,607
+Added: Noninterest income
+Added: Total segment income
+Added: $ 128,538 $ 133,206
+Added: Interest expense
+Added: 57,735 67,996
+Added: Segment net interest income and noninterest income
+Added: 70,803 65,210
+Added: Provision for credit losses
+Added: Salaries and employee benefits
+Added: 22,578 22,131
+Added: Other segment items*
+Added: 16,332 14,920
+Added: Income tax expense
+Added: Segment consolidated net income
+Added: $ 21,233 $ 18,281
+Added: Other segment disclosures
+Added: Interest income
+Added: $ 124,789 $ 129,607
+Added: Interest expense
+Added: 57,735 67,996
+Added: Amortization of core deposit intangibles
+Added: Other significant noncash items:
+Added: Provision for credit losses
+Added: Segment assets
+Added: 9,751,832 9,845,796
+Added: Total expenses for segment assets
+Added: 107,306 114,924
+Added: Reconciliation of assets
+Added: Total assets for segment
+Added: $ 9,751,832 $ 9,845,796
+Added: Total consolidated assets
+Added: $ 9,759,255 $ 9,853,964
+Added: *Other segment items for consolidated bank include expenses for occupancy and equipment, FDIC insurance, professional and consulting, marketing and advertising, merger expenses and other expenses.
Management ’ s Discussion and Analysis of Financial Condition and Results of Operations
−Removed: The purpose of this analysis is to provide the reader with information relevant to understanding and assessing the Company’s results of operations for the periods presented herein and financial condition as of September 30, 2024 and December 31, 2023.
+Added: The purpose of this analysis is to provide the reader with information relevant to understanding and assessing the Company’s results of operations for the periods presented herein and financial condition as of March 31, 2025 and December 31, 2024.
In order to fully understand this analysis, the reader is encouraged to review the consolidated financial statements and accompanying notes thereto appearing elsewhere in this report.
8 unchanged sentences
(3) prepayment speeds, loan origination and sale volumes, charge-offs and credit loss provisions may vary substantially from period to period;
−Removed: (4) general economic conditions may be less favorable than expected;
+Added: (4) general economic conditions may be less favorable than expected or may be adversely effected by policy uncertainties, including regarding the impact of tariffs;
(5) political developments, sovereign debt problems, wars or other hostilities such as the ongoing conflict between Ukraine and Russia and instability in the Middle East, may disrupt or increase volatility in securities markets or other economic conditions;
10 unchanged sentences
We consider accounting policies that require management to exercise significant judgment or discretion or to make significant assumptions that have, or could have, a material impact on the carrying value of certain assets or on income to be critical accounting policies.
−Removed: As of September 30, 2024, there have been no material changes to our critical accounting policies as compared to the critical accounting policies disclosed in our most recent Annual Report on Form 10-K.
+Added: As of March 31, 2025, there have been no material changes to our critical accounting policies as compared to the critical accounting policies disclosed in our most recent Annual Report on Form 10-K.
Reference is made to Item 7 “Management’s Discussion and Analysis of Financial Condition and Results of Operations” in the Company’s Annual Report on Form 10-K for the year ended December 31, 2024.
Operating Results Overview
−Removed: Net income available to common stockholders for the three months ended September 30, 2024 was $15.7 million compared to $19.9 million for the comparable three-month period ended September 30, 2023.
−Removed: The Company’s diluted earnings per share were $0.41 for the three months ended September 30, 2024 as compared with diluted earnings per share of $0.51 for the comparable three-month period ended September 30, 2023.
−Removed: The $4.2 million decrease in net income available to common stockholders and the $0.10 decrease in diluted earnings per share were due to a $2.9 million increase in noninterest expenses, a $2.3 million increase in provision for credit losses and a $1.5 million decrease in net interest income, partially offset by a $1.2 million increase in noninterest income and a $1.2 million decrease in income tax expense.
−Removed: Included in noninterest expenses for the three months ended September 30, 2024 were $0.7 million in merger expenses related to the previously announced, merger with The First of Long Island Corporation.
−Removed: There were no such charges for the three months ended September 30, 2023.
−Removed: Net income available to common stockholders for the nine months ended September 30, 2024 was $48.9 million compared to $63.2 million for the comparable nine-month period ended September 30, 2023.
−Removed: The Company’s diluted earnings per share were $1.27 for the nine months ended September 30, 2024 as compared with diluted earnings per share of $1.61 for the comparable nine-month period ended September 30, 2023.
−Removed: The $14.3 million decrease in net income available to common stockholders and the $0.34 decrease in diluted earnings per share versus the comparable nine-month period ended September 30, 2023 were due to a $10.7 million decrease in net interest income, a $7.2 million increase in noninterest expenses and a $4.8 million increase in provision for credit losses, partially offset by a $3.2 million increase in noninterest income and a $5.2 million decrease in income tax expense.
−Removed: Included in noninterest expenses for the nine months ended September 30, 2024 were $0.7 million in merger expenses related to the previously announced, merger with The First of Long Island Corporation.
−Removed: There were no such charges for the nine months ended September 30, 2023.
+Added: Net income available to common stockholders for the three months ended March 31, 2025 was $18.7 million compared to $15.7 million for the comparable three-month period ended March 31, 2024.
+Added: The Company’s diluted earnings per share were $0.49 for the three months ended March 31, 2025 as compared with diluted earnings per share of $0.41 for the comparable three-month period ended March 31, 2024.
+Added: The $3.0 million increase in net income available to common stockholders and the $0.08 increase in diluted earnings per share were due to a $5.5 million increase in net interest income, $0.5 million decrease in provision for credit losses and $0.6 million increase in noninterest income, partially offset by an increase of $2.2 million in noninterest expenses and a $1.3 million increase in income tax expense.
+Added: Included in noninterest expenses for the three months ended March 31, 2025 were $1.3 million in merger expenses related to the previously announced merger with The First of Long Island Corporation.
+Added: There were no such charges for the three months ended March 31, 2024.
Net Interest Income and Margin
2 unchanged sentences
Net interest margin is defined as net interest income on a tax-equivalent basis as a percentage of total average interest-earning assets.
−Removed: Fully taxable equivalent net interest income for the three months ended September 30, 2024 decreased by $1.5 million, or 2.4%, from the three months ended September 30, 2023.
−Removed: The decrease primarily resulted from a nine basis-point decrease in the net interest margin to 2.67% from 2.76%, partially offset by a $13.5 million, or 1.9%, increase in average investment securities.
−Removed: The contraction of the net interest margin was primarily attributable to a 40 basis-point increase in the average cost of deposits, including noninterest-bearing deposits, partially offset by a 24 basis-point increase in the loan portfolio yield.
−Removed: Fully taxable equivalent net interest income for the nine months ended September 30, 2024 decreased by $10.6 million, or 5.4%, from the nine months ended September 30, 2023.
−Removed: The decrease primarily resulted from an 18 basis-point decrease in the net interest margin to 2.67% from 2.85%, partially offset by a $72.6 million, or 0.9%, increase in average total loans.
−Removed: The contraction of the net interest margin was primarily attributable to a 69 basis-point increase in the average costs of deposits including noninterest-bearing deposits, partially offset by a 38 basis-point increase in the loan portfolio yield.
−Removed: The following tables present for the three and nine months ended September 30, 2024 and 2023, the Company’s average assets, liabilities and stockholders’ equity.
+Added: Fully taxable equivalent net interest income for the three months ended March 31, 2025 was $66.6 million, an increase of $5.5 million, or 9.0%, from the three months ended March 31, 2024.The increase primarily resulted from a 29 basis-point increase in the net interest margin to 2.93% from 2.64%.
+Added: During the three months ended March 31, 2025, average total loans decreased by $123.8 million, or 1.5% when compared to the three months ended March 31, 2024.
+Added: The widening of the net interest margin during the three months ended March 31, 2025 when compared to the three months ended March 31, 2024 was primarily due to a 42 basis-point decrease in the average cost of total funds, including noninterest-bearing deposits, partially offset by a nine basis-point decrease in the loan portfolio yield.
+Added: The following table presents for the three months ended March 31, 2025 and 2024, the Company’s average assets, liabilities and stockholders’ equity.
The Company’s net interest income, net interest spread and net interest margin are also reflected.
Average Statements of Condition with Interest and Average Rates
−Removed: Three Months Ended September 30,
+Added: Three Months Ended March 31,
(dollars in thousands)
33 unchanged sentences
Rates are annualized.
−Removed: Nine Months Ended September 30,
−Removed: (dollars in thousands)
−Removed: Interest-earning assets:
−Removed: Securities (1) (2)
−Removed: Total loans (2) (3) (4)
−Removed: Federal funds sold and interest-bearing with banks
−Removed: Restricted investment in bank stocks
−Removed: Total interest-earning assets
−Removed: Noninterest-earning assets:
−Removed: Allowance for credit losses
−Removed: Other noninterest-earning assets
−Removed: Interest-bearing liabilities:
−Removed: Interest-bearing deposits:
−Removed: Time deposits
−Removed: Other interest-bearing deposits
−Removed: Total interest-bearing deposits
−Removed: Subordinated debentures
−Removed: Finance lease
−Removed: Total interest-bearing liabilities
−Removed: Demand deposits
−Removed: Other liabilities
−Removed: Total noninterest-bearing liabilities
−Removed: Stockholders’ equity
−Removed: Total liabilities and stockholders’ equity
−Removed: Net interest income (tax-equivalent basis)
−Removed: Net interest spread (5)
−Removed: Net interest margin (6)
−Removed: Tax-equivalent adjustment
−Removed: Net interest income
−Removed: Average balances are based on amortized cost and include equity securities.
−Removed: Interest income is presented on a tax-equivalent basis using a 21% assumed tax rate.
−Removed: Includes loan fee income and accretion of purchase accounting adjustments.
−Removed: Total loans include loans held-for-sale and nonaccrual loans.
−Removed: Represents the 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.
−Removed: Represents net interest income on a tax-equivalent basis divided by average total interest-earning assets.
−Removed: Rates are annualized.
Noninterest Income
−Removed: Noninterest income totaled $4.7 million for the three months ended September 30, 2024, compared with $3.6 million for the three months ended September 30, 2023.
−Removed: The $1.2 million increase was due to a $0.7 million increase in net gains on equity securities, a $0.4 million increase in BOLI death benefits received, a $0.2 million increase in BOLI income, a $0.1 million increase in BoeFly income, and a $0.1 million increase in other deposit, loan and other income, partially offset by a decrease in net gains on sale of loans held-for-sale of $0.3 million.
−Removed: Noninterest income totaled $13.0 million for the nine months ended September 30, 2024, compared with $9.8 million for the nine months ended September 30, 2023.
−Removed: The $3.2 million increase was due to a $1.0 million increase in net gains on equity securities, a $0.9 million increase in net gains on sale of loans held-for-sale, a $0.4 million increase in BOLI death benefits received, a $0.4 million increase in BOLI income, a $0.3 million increase in BoeFly income and a $0.3 million increase in other deposit, loan and other income.
+Added: Noninterest income totaled $4.5 million for the three months ended March 31, 2025, compared with $3.8 million for the three months ended March 31, 2024.
+Added: The $0.6 million increase in noninterest income during the three months ended March 31, 2025 when compared to the three months ended March 31, 2024 was primarily due to a $0.4 million increase in deposit, loan and other income and a $0.4 million increase in het gains on equity securities, partially offset by a $0.2 million decrease in net gains on sale of loans held-for-sale.
Noninterest Expenses
−Removed: Noninterest expenses totaled $38.6 million for the three months ended September 30, 2024, compared with $35.8 million for the three months ended September 30, 2023.
−Removed: The $2.9 million increase was primarily attributable to an increase in information technology and communications of $1.0 million, due to additional investments in technology, equipment, and software, a $0.7 million increase in merger expenses related to the previously announced, merger with The First of Long Island Corporation, a $0.7 million increase in salaries and employee benefits, due to increases in incentive-based compensation accruals and other employee benefit expenses, a $0.3 million increase in professional and consulting expenses, a $0.2 million increase in occupancy and equipment expenses and a $0.1 million increase in marketing and advertising expenses, partially offset by a $0.1 million decrease in other expenses.
−Removed: Noninterest expenses totaled $113.3 million for the nine months ended September 30, 2024, compared with $106.1 million for the nine months ended September 30, 2023.
−Removed: The $7.2 million increase was primarily attributable to an increase in information technology and communications of $2.9 million, due to additional investments in technology, equipment, and software, a $1.6 million increase in salaries and employee benefits, due to increases in incentive-based compensation accruals and other employee benefit expenses, a $0.9 million increase in FDIC insurance expense, a $0.7 million increase in merger expenses related to the previously announced, merger with The First of Long Island Corporation, a $0.6 million increase in occupancy and equipment expenses, a $0.3 million increase in marketing and advertising expenses and a $0.3 million increase in other expenses, partially offset by a $0.1 million decrease in amortization of core deposit intangibles.
−Removed: Income tax expense was $6.0 million for the three months ended September 30, 2024, compared to $7.2 million for the three months ended September 30, 2023.
−Removed: The decrease in income tax expense was the result of lower income before income tax expense.
−Removed: The effective tax rate for the three months ended September 30, 2024 and September 30, 2023 was 26.0% and 25.2%, respectively.
−Removed: Income tax expense was $18.6 million for the nine months ended September 30, 2024, compared to $23.7 million for the nine months ended September 30, 2023.
−Removed: The decrease in income tax expense was the result of lower income before income tax expense.
−Removed: The effective tax rate for the nine months ended September 30, 2024 and September 30, 2023 was 25.8% and 26.0%, respectively.
+Added: Noninterest expenses totaled $39.3 million for the three months ended March 31, 2025, compared with $37.1 million for the three months ended March 31, 2024.
+Added: The $2.2 million increase in noninterest expenses during the three months ended March 31, 2025 when compared to the three months ended March 31, 2024 was primarily due to a $1.3 million increase in merger expenses, a $0.5 million increase in salaries and employee benefits and a $0.3 million BOLI restructuring charge that took place during the three months ended March 31, 2025.
+Added: The increases in merger expenses are due to the planned merger with The First of Long Island Corporation.
+Added: Income tax expense was $7.2 million for the three months ended March 31, 2025, compared to $5.9 million for the three months ended March 31, 2024.
+Added: The increase in income tax expense was the result of higher income before income tax expense and a decrease in tax-free adjustments.
+Added: The effective tax rate for the three months ended March 31, 2025 and March 31, 2024 was 26.1% and 25.5%, respectively.
Financial Condition
1 unchanged sentence
The following table sets forth the composition of our loan portfolio, excluding loans held-for-sale and net deferred loan fees, by loan segment at the periods indicated.
−Removed: September 30, 2024
+Added: March 31, 2025
December 31, 2024
6 unchanged sentences
Residential real estate
−Removed: As of September 30, 2024, gross loans totaled $8.1 billion, a decrease of $235.5 million or 2.8%, compared to December 31, 2023.
+Added: As of March 31, 2025, gross loans totaled $8.2 billion, a decrease of $74.1 million or 0.9% compared to December 31, 2024.
While the previous table reflects the classification of our loans by loan portfolio segment, the following tables present further disaggregation of our commercial real estate portfolio along with applicable weighted average loan-to-value ratios, typically determined at loan origination.
−Removed: September 30, 2024
+Added: March 31, 2025
December 31, 2024
5 unchanged sentences
Owner-occupied
−Removed: Total commercial real estate loans (before discount)
−Removed: Fair value premium (discount)
+Added: Total commercial real estate loans (before premium)
+Added: Fair value premium
Total commercial real estate loans
The tables above are further broken down in the following tables by geography:
−Removed: September 30, 2024
+Added: March 31, 2025
December 31, 2024
5 unchanged sentences
Total multifamily loans
−Removed: September 30, 2024
+Added: March 31, 2025
December 31, 2024
5 unchanged sentences
Total nonowner occupied
−Removed: September 30, 2024
+Added: March 31, 2025
December 31, 2024
5 unchanged sentences
Total owner-occupied
−Removed: September 30, 2024
+Added: March 31, 2025
December 31, 2024
4 unchanged sentences
In addition, the following tables present further details with respect to our nonowner-occupied and owner-occupied borrower concentrations included in the commercial real estate segment.
−Removed: September 30, 2024
+Added: March 31, 2025
December 31, 2024
5 unchanged sentences
Total nonowner-occupied
−Removed: September 30, 2024
+Added: March 31, 2025
December 31, 2024
6 unchanged sentences
Allowance for Credit Losses and Related Provision
−Removed: As of September 30, 2024, the Company’s allowance for credit losses for loans was $82.5 million, an increase of $0.5 million from $82.0 million as of December 31, 2023.
−Removed: The provision for credit losses, which includes a provision for unfunded commitments, for the three and nine months ended September 30, 2024 was $3.8 million and $10.3 million, respectively, compared to $1.5 million and $5.5 million, for the three and nine months ended September 30, 2023, respectively.
−Removed: The increase in the provision for credit losses during the three months and nine months ended September 30, 2024, when compared to the comparable periods in 2023 reflects increases to the specific reserves, partially offset by a decrease in general reserves.
−Removed: There were $3.5 million and $9.9 million in net charge-offs for the three and nine months ended September 30, 2024 compared with $2.5 million and $8.0 million in net charge-offs for the three and nine months ended September 30, 2023 respectively.
−Removed: Net charge-offs during the nine months ended September 30, 2024 consisted of charges related to five multifamily loans totaling $7.8 million, four commercial loans of $2.2 million and one owner-occupied commercial real estate loan of $0.3 million, while the net charge-offs during the nine months ended September 30, 2023 were primarily the result of the resolution of certain nonaccrual taxi loans and one owner-occupied commercial real estate loan that was previously reserved for.
+Added: The allowance for credit losses is an estimate of current expected credit losses considering available information relevant to assessing collectability of cash flows over the contractual term of the financial assets necessary to cover lifetime expected credit losses inherent in financial assets at the balance sheet date.
+Added: The methodology for determining the allowance for credit losses is considered a critical accounting policy by management because of the high degree of judgment involved, the subjectivity of the assumptions used, and the potential for changes in the forecasted economic environment that could result in changes to the amount of the recorded allowance for credit losses.
+Added: The loan portfolio also represents the largest asset type on the Company’s Consolidated Statements of Financial Condition.
+Added: As of March 31, 2025, the Company’s allowance for credit losses for loans was $82.4 million, a decrease of $0.3 million from $82.7 million as of December 31, 2024.
+Added: The provision for credit losses, which includes a provision for unfunded commitments, for the three months ended March 31, 2025 and March 31, 2024, was $3.5 million and $4.0 million, respectively.
+Added: The provision for credit losses for the periods presented reflected net portfolio loan growth, charges related to individually evaluated loans, and changing economic forecasts and conditions.
+Added: There were $3.4 million of net charge-offs for the three months ended March 31, 2025 compared with $3.2 million of net charge-offs for the three months ended March 31, 2024.
+Added: Net loan charge-offs as a percentage of average loans receivable for the three months ended March 31, 2025 and 2024 were 0.17% and 0.15%, respectively.
The level of the allowance for the respective periods of 2025 and 2024 reflects the credit quality within the loan portfolio, loan growth, the changing composition of the commercial and residential real estate loan portfolios and other related factors.
−Removed: In management’s view, the level of the ACL as of September 30, 2024 is adequate to cover credit losses inherent in the loan portfolio.
+Added: In management’s view, the level of the ACL as of March 31, 2025 is adequate to cover credit losses inherent in the loan portfolio.
Management’s judgment regarding the adequacy of the allowance constitutes a “Forward-Looking Statement” under the Private Securities Litigation Reform Act of 1995.
2 unchanged sentences
Three Months Ended
−Removed: September 30,
(dollars in thousands)
4 unchanged sentences
Total charge-offs
−Removed: Commercial real estate
−Removed: Residential real estate
Total recoveries
5 unchanged sentences
ACL as a percentage of loans receivable
−Removed: Nine Months Ended
−Removed: September 30,
−Removed: (dollars in thousands)
−Removed: Average loans receivable
−Removed: Analysis of the ACL:
−Removed: Balance - beginning of quarter
−Removed: Commercial real estate
−Removed: Residential real estate
−Removed: Total charge-offs
−Removed: Commercial real estate
−Removed: Residential real estate
−Removed: Total recoveries
−Removed: Net charge-offs
−Removed: Provision for credit losses – loans
−Removed: Balance - end of period
−Removed: Ratio of annualized net charge-offs during the period to average loans receivable during the period
−Removed: Loans receivable
−Removed: ACL as a percentage of loans receivable
Asset Quality
6 unchanged sentences
Loans past due 90 days or more which are both well-secured and in the process of collection may remain on an accrual basis.
−Removed: Nonperforming assets include nonaccrual loans and other real estate owned.
+Added: Nonperforming assets include nonaccrual loans and other real estate owned ("OREO").
Nonaccrual loans represent loans on which interest accruals have been suspended.
1 unchanged sentence
The following table sets forth, as of the dates indicated, the amount of the Company’s nonperforming assets:
−Removed: September 30, 2024
+Added: March 31, 2025
December 31, 2024
6 unchanged sentences
Investment Securities
−Removed: As of September 30, 2024, the principal components of the securities portfolio were federal agency obligations, mortgage-backed securities, obligations of U.S.
+Added: As of March 31, 2025, the principal components of the securities portfolio were federal agency obligations, mortgage-backed securities, obligations of U.S.
states and political subdivisions, corporate bonds and notes, asset-backed securities and equity securities.
−Removed: For the three months ended September 30, 2024, average securities, on an amortized cost basis, increased by $13.5 million to approximately $736.9 million, or 8.0% of average total interest-earning assets, from approximately $723.4 million, or 8.0% of average interest-earning assets, for the three months ended September 30, 2023.
−Removed: For the nine months ended September 30, 2024, average securities, on an amortized cost basis increased by $4.8 million to approximately $732.3 million, or 7.9% of average total interest-earning assets, from approximately $727.5 million, or 7.9% of average interest-earning assets, for the nine months ended September 30, 2023.
−Removed: As of September 30, 2024, net unrealized losses on securities available-for-sale, which are carried as a component of accumulated other comprehensive loss and included in stockholders’ equity, net of tax, amounted to $51.1 million as compared with net unrealized losses of $57.8 million as of December 31, 2023.
−Removed: The increase in unrealized losses is predominately attributable to changes in market conditions and interest rates.
+Added: For the three months ended March 31, 2025, average securities, on an amortized cost basis, increased by $25.6 million to $745.9 million, or 8.1% of average total interest-earning assets, from $720.3 million, or 7.7% of average interest-earning assets, for the three months ended March 31, 2024.
+Added: As of March 31, 2025, net unrealized losses on securities available-for-sale, which are carried as a component of accumulated other comprehensive loss and included in stockholders’ equity, net of tax, amounted to $64.2 million as compared with net unrealized losses of $69.6 million as of December 31, 2024.
+Added: The decrease in unrealized losses is predominantly attributable to changes in market conditions and interest rates.
Unrealized losses have not been recognized into income because the issuers are of high credit quality, we do not intend to sell, and it is likely that we will not be required to sell the securities prior to their anticipated recovery.
−Removed: The decline in fair value is largely due to changes in interest rates and other market conditions.
The issuers continue to make timely principal and interest payments on the securities.
Any impairment that has not been recorded through an allowance for credit losses is recognized in other comprehensive income, net of applicable taxes.
−Removed: The Company did not record an allowance for credit losses for available-for-sale securities as of September 30, 2024.
+Added: The Company did not record an allowance for credit losses for available-for-sale securities as of March 31, 2025.
Interest Rate Sensitivity Analysis
6 unchanged sentences
The Company utilizes a number of strategies to manage interest rate risk including, but not limited to:
−Removed: (i) balancing the types and structures of interest-earning assets and interest-bearing liabilities by diversifying mix, coupons, maturities and/or repricing characteristics, (ii) reducing the overall interest rate sensitivity of liabilities by emphasizing core and/or longer-term deposits;
−Removed: utilizing FHLB advances and wholesale deposits for our interest rate risk profile, (iii) managing the investment portfolio for liquidity and interest rate risk profile, and (iv) entering into interest rate swap and cap agreements.
+Added: (i) balancing the types and structures of interest-earning assets and interest-bearing liabilities by diversifying mix, coupons, maturities and/or repricing characteristics, (ii) reducing the overall interest rate sensitivity of liabilities by emphasizing core and/or longer-term deposits and utilizing FHLB advances and wholesale deposits for our interest rate risk profile, (iii) managing the investment portfolio for liquidity and interest rate risk profile, and (iv) entering into interest rate swap and cap agreements.
We currently utilize net interest income simulation and economic value of equity (“EVE”) models to measure the potential impact to the Bank of future changes in interest rates.
−Removed: As of September 30, 2024 and December 31, 2023, the results of the models were within guidelines prescribed by our Board of Directors.
+Added: As of March 31, 2025 and December 31, 2024, the results of the models were within guidelines prescribed by our Board of Directors.
If model results were to fall outside prescribed ranges, action, including additional monitoring and reporting to the Board, would be required by the ALCO and the Bank’s management.
The net interest income simulation model attempts to measure the change in net interest income over the next one-year period, and over the next three-year period on a cumulative basis, assuming certain changes in the general level of interest rates.
−Removed: The model also utilizes immediate and parallel shifts in market interest rates as of September 30, 2024.
−Removed: Based on our model, which was run as of September 30, 2024, 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 3.95%, while a 100 basis-point instantaneous and parallel decrease in interest rates would increase net interest income by 1.32%.
+Added: The model also utilizes immediate and parallel shifts in market interest rates as of March 31, 2025.
+Added: Based on our model, which was run as of March 31, 2025, 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 5.30%, while a 100 basis-point instantaneous and parallel decrease in interest rates would increase net interest income by 2.27%.
As of December 31, 2024, 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 8.02% while a 100 basis-point instantaneous and parallel decrease in interest rates would increase net interest income by 3.56%.
−Removed: Based on our model, which was run as of September 30, 2024, we estimated that over the next three years, on a cumulative basis, a 200 basis-point instantaneous and parallel increase in the general level of interest rates would decrease our net interest income by 1.23%, while a 100 basis-point instantaneous and parallel decrease in interest rates would decrease net interest income by 0.07%.
+Added: Based on our model, which was run as of March 31, 2025, we estimated that over the next three years, on a cumulative basis, a 200 basis-point instantaneous and parallel increase in the general level of interest rates would decrease our net interest income by 0.04%, while a 100 basis-point instantaneous and parallel decrease in interest rates would decrease net interest income by 0.90%.
As of December 31, 2024, we estimated that over the next three years, on a cumulative basis, a 200 basis-point instantaneous and parallel increase in the general level of interest rates would decrease our net interest income by 2.08%, while a 100 basis-point instantaneous and parallel decrease in interest rates would increase net interest income by 0.37%.
1 unchanged sentence
The EVE is likely to be different as interest rates change.
−Removed: Our EVE as of September 30, 2024, would decrease by 9.81% with an instantaneous and parallel rate shock of up 200 basis points, and increase by 2.23% with an instantaneous and parallel rate shock of down 100 basis points.
+Added: Our EVE as of March 31, 2025, would decrease by 5.11% with an instantaneous and parallel rate shock of up 200 basis points, and increase by 0.40% with an instantaneous and parallel rate shock of down 100 basis points.
Our EVE as of December 31, 2024, would decrease by 7.87% with an instantaneous and parallel rate shock of up 200 basis points, and increase by 1.67% with an instantaneous and parallel rate shock of down 100 basis-points.
The change in interest rate sensitivity was impacted by changes in overall market interest rates, updates to certain model assumptions, changes in short and intermediate-term fixed rate funding and by the deposit mix shift into certificates of deposit, from both noninterest-bearing and interest-bearing non-maturity deposits.
−Removed: The following table illustrates the most recent results for EVE and one-year NII sensitivity as of September 30, 2024.
+Added: The following table illustrates the most recent results for EVE and one-year NII sensitivity as of March 31, 2025.
Interest Rates
33 unchanged sentences
The policy includes internal limits, deposit concentrations, liquidity sources and availability, stress testing, collateral management, contingency funding plan and other qualitative and quantitative metrics.
−Removed: As of September 30, 2024, the amount of liquid assets remained at a level management deemed adequate to ensure that, on a short and long-term basis, contractual liabilities, depositors’ withdrawal requirements, and other operational and client credit needs could be satisfied.
−Removed: As of September 30, 2024, liquid assets (cash and due from banks, interest-bearing deposits with banks and unencumbered investment securities) were $705.9 million, which represented 7.3% of total assets and 8.5% of total deposits and borrowings, compared to $516.3 million as of December 31, 2023, which represented 5.2% of total assets and 6.1% of total deposits and borrowings.
−Removed: As of September 30, 2024, not included in the above liquid assets were securities with a market value of $109.6 million which were pledged to the Federal Home Loan Bank, which support aggregate unutilized borrowing capacity of $102.2 million as of September 30, 2024.
−Removed: As of December 31, 2023, not included in the above liquid assets were securities with a market value of $276.0 million which were pledged to either the Federal Reserve Bank’s Bank Term Funding Program (“BTFP”), or the Federal Home Loan Bank, which supported aggregate unutilized borrowing capacity of $300.5 million as of December 31, 2023.
−Removed: The Bank is a member of the Federal Home Loan Bank of New York and, based on available qualified collateral as of September 30, 2024, had the ability to borrow $2.5 billion.
−Removed: The Bank also has a credit facility established with the Federal Reserve Bank of New York for direct discount window borrowings based on pledged collateral and had the ability to borrow $1.6 billion as of September 30, 2024.
−Removed: In addition, as of September 30, 2024, the Bank had in place borrowing capacity of $305 million through correspondent banks and other unsecured borrowing lines.
−Removed: As of September 30, 2024, the Bank had aggregate available and unused credit of approximately $2.9 billion, which represents the aforementioned facilities totaling $4.4 billion net of $1.4 billion in outstanding borrowings and letters of credit.
−Removed: As of September 30, 2024, outstanding commitments for the Bank to extend credit were approximately $1.1 billion.
−Removed: Cash an d cash equivalents totaled $247.2 million as of September 30, 2024, decreasing by $4.5 million from $242.7 million as of December 31, 2023.
+Added: As of March 31, 2025, the amount of liquid assets remained at a level management deemed adequate to ensure that, on a short and long-term basis, contractual liabilities, depositors’ withdrawal requirements, and other operational and client credit needs could be satisfied.
+Added: As of March 31, 2025, liquid assets (cash and due from banks, interest-bearing deposits with banks and unencumbered investment securities) were $574.7 million, which represented 5.9% of total assets and 6.9% of total deposits and borrowings, compared to $799.7 million as of December 31, 2024, which represented 8.1% of total assets and 9.4% of total deposits and borrowings.
+Added: As of March 31, 2025, not included in the above liquid assets were securities with a market value of $102.5 million which were pledged to the Federal Home Loan Bank and securities with a market value of $143.2 which were pledged to the Federal Reserve Bank of New York, which supported aggregate unutilized borrowing capacity of $102.2 million and $137.5 million, respectively as of March 31, 2025.
+Added: As of December 31, 2024, not included in the above liquid assets were securities with a market value of $102.5 million which were pledged to the Federal Home Loan Bank, which support aggregate unutilized borrowing capacity of $95.2 million as of December 31, 2024.
+Added: The Bank is a member of the Federal Home Loan Bank of New York and, based on available qualified collateral as of March 31, 2025, had the ability to borrow $2.4 billion.
+Added: The Bank also has a credit facility established with the Federal Reserve Bank of New York for direct discount window borrowings based on pledged collateral and had the ability to borrow $1.6 billion as of March 31, 2025.
+Added: In addition, as of March 31, 2025, the Bank had in place borrowing capacity of $280 million through correspondent banks and other unsecured borrowing lines.
+Added: As of March 31, 2025, the Bank had aggregate available and unused credit of approximately $3.1 billion, which represents the aforementioned facilities totaling $4.3 billion net of $1.3 billion in outstanding borrowings and letters of credit.
+Added: As of March 31, 2025, outstanding commitments for the Bank to extend credit were approximately $1.2 billion.
+Added: Cash an d cash equivalents totaled $292.6 million as of March 31, 2025, decreasing by $63.9 million from $356.5 million as of December 31, 2024.
Operating activities provided $14.9 million in net cash.
14 unchanged sentences
The following table sets forth the average balances and weighted average rates of our deposits for the periods indicated.
−Removed: Quarter-to-Date Average September 30, 2024
−Removed: Quarter-to-Date Average September 30, 2023
−Removed: (dollars in thousands)
−Removed: Demand, noninterest-bearing
−Removed: Demand, interest-bearing & NOW
−Removed: Total average deposits
−Removed: Average total deposits increased by $27.7 million, or 0.4%, during the third quarter of 2024 when compared to the third quarter of 2023.
−Removed: The increase in total average deposits was attributed to increases in savings deposits of $143.5 million and time deposits of $19.2 million, partially offset by decreases in interest-bearing demand deposits of $119.6 million and noninterest-bearing demand deposits of $15.4 million.
−Removed: The increase in average time deposits of $19.2 million during the third quarter of 2024 was attributed to increases in retail time deposits of $162.7 million, partially offset by decreases in nonreciprocal brokered time deposits of $70.1 million, CDARs of $63.9 million and internet listing services of $9.5 million.
−Removed: The Bank continues its utilization of nonreciprocal brokered time deposits to enhance balance sheet liquidity as it remains a favorable alternative to other borrowings.
−Removed: Quarter-to-date average demand deposits have remained relatively stable as an industry trend away from noninterest-bearing accounts and into interest-bearing accounts has largely subsided.
−Removed: Average demand deposits (including interest-bearing and noninterest-bearing) for both the third quarter of 2024 and the third quarter of 2023 included $1.2 billion in ICS reciprocal deposits.
−Removed: Average time deposits for the third quarter of 2024 included $66.6 million in CDARS, compared to $130.5 million for the third quarter of 2023.
−Removed: The decrease in CDARS was attributed to maturities that did not renew.
−Removed: The following table sets forth the average balances and weighted average rates of our deposits for the periods indicated.
−Removed: Year-to-Date Average September 30, 2024
−Removed: Year-to-Date Average September 30, 2023
+Added: Quarter-to-Date Average March 31, 2025
+Added: Quarter-to-Date Average March 31, 2024
(dollars in thousands)
2 unchanged sentences
Total average deposits
−Removed: Average total deposits increased by $29.2 million, or 0.4%, during the nine months ended September 30, 2024 when compared to the nine months ended September 30, 2023.
−Removed: The increase in total average deposits was primarily attributed to increases in savings deposits of $109.5 million and time deposits of $52.1 million, partially offset by decreases in noninterest-bearing demand deposits of $103.3 million and interest-bearing demand deposits of $29.1 million.
−Removed: The increase in average time deposits of $52.1 million during the nine months ended September 30, 2024 was attributed to increases in retail time deposits of $121.8 million and internet listing services of $0.3 million, partially offset by decreases in CDARs of $44.9 million and nonreciprocal brokered time deposits of $25.2 million.
−Removed: The decrease in year-to-date average noninterest-bearing demand deposits was consistent with industry trends reflecting higher levels of interest rates which resulted in migration of noninterest-bearing deposits to interest-bearing transaction deposits.
−Removed: Average demand deposits (including interest-bearing and noninterest-bearing) during the nine months ended September 30, 2024 included $1.2 billion in ICS reciprocal deposits, compared to $0.9 billion during the nine months ended September 30, 2023.
−Removed: Average time deposits during the nine months ended September 30, 2024 included $73.0 million in CDARS, compared to $117.8 million during the nine months ended September 30, 2023.
+Added: Average total deposits increased by $156.5 million, or 2.1%, during the three months ended March 31, 2025 when compared to the three months ended March 31, 2024.
+Added: The increase in total average deposits was attributed to increases in savings deposits of $215.2 million and noninterest-bearing deposits of $51.5 million, partially offset by decreases in time deposits of $86.7 million and interest-bearing demand deposits of $23.5 million.
+Added: The decrease in average time deposits of $86.7 million during the three months ended March 31, 2025 was attributed to decreases in nonreciprocal brokered time deposits of $49.6 million, CDARs of $33.2 million and internet listing services of $19.1 million, partially offset by increases in retail time deposits of $15.2 million.
+Added: Average aggregate demand deposits included $1.1 billion in ICS reciprocal deposits, during both the three months ended March 31, 2025 and March 31, 2024.
+Added: Average time deposits during the three months ended March 31, 2025 included $58.5 million in CDARS, compared to $91.7 million during the three months ended March 31, 2024.
The decrease in CDARS was attributed to maturities that did not renew.
1 unchanged sentence
The following table sets forth information related to the uninsured deposit balances of the Bank.
−Removed: September 30, 2024
+Added: March 31, 2025
December 31, 2024
7 unchanged sentences
The following table sets forth the distribution of total actual deposit accounts, by account types for the periods indicated.
−Removed: September 30, 2024
+Added: March 31, 2025
December 31, 2024
5 unchanged sentences
Total deposits
−Removed: Total deposits decreased by $12.1 million, or 0.2%, to $7.52 billion as of September 30, 2024 from $7.54 billion as of December 31, 2023.
−Removed: The decrease in total deposits was primarily attributed to a decrease in interest-bearing demand deposits of $208.1 million, partially offset by increases in savings deposits of $110.0 million, time deposits of $82.9 million and noninterest-bearing demand deposits of $3.2 million.
−Removed: Total interest-bearing demand deposits as of both September 30, 2024 and December 31, 2023 include $1.1 billion in ICS reciprocal deposits.
−Removed: Total time deposits as of September 30, 2024 include $66.2 million in CDARS, compared to $96.0 million as of December 31, 2023.
−Removed: Included in time deposits were nonreciprocal brokered deposits of $824.9 million as of September 30, 2024, which decreased from $915.5 million as of December 31, 2023.
−Removed: As of September 30, 2024, we held $797.4 million of time deposits balances greater than $250,000.
−Removed: The following table provides information on the maturity distribution of the time deposits with balances greater than $250,000 as of September 30, 2024:
−Removed: September 30, 2024
+Added: Total deposits decreased by $52.9 million, or 0.7%, when compared to December 31, 2024.
+Added: The decrease in total deposits was primarily attributed to decreases in noninterest-bearing demand deposits of $102.8 million, interest-bearing demand deposits of $51.5 million, and time deposits of $7.0 million, partially offset by increases in savings deposits of $108.4 million.
+Added: Aggregate demand deposits included $1.0 billion and $1.1 billion in ICS reciprocal deposits as of March 31, 2025 and December 31, 2024, respectively.
+Added: Total time deposits as of March 31, 2025 include $47.8 million in CDARS, compared to $60.3 million as of December 31, 2024.
+Added: Included in time deposits were nonreciprocal brokered deposits of $981.6 million as of March 31, 2025, which increased from $907.2 million as of December 31, 2024.
+Added: As of March 31, 2025, we held $674.3 million of time deposits balances greater than $250,000.
+Added: The following table provides information on the maturity distribution of the time deposits with balances greater than $250,000 as of March 31, 2025:
+Added: March 31, 2025
(dollars in thousands)
9 unchanged sentences
Effective for quarterly interest rate resets after July 3, 2023 the subordinated debentures' floating rate will be three-month CME Term SOFR plus 2.85% plus a tenor spread adjustment of 0.26161%.
−Removed: The rate as of September 30, 2024 was 8.37%.
+Added: The rate as of March 31, 2025 was 7.40%.
During June 2020, the Parent Corporation issued $75 million in aggregate principal amount of fixed-to-floating rate subordinated notes (the “2020 Notes”).
The 2020 Notes bear interest at 5.75% annually from, and including, the date of initial issuance up to, but excluding, September 15, 2025 or the date of earlier redemption, payable semi-annually in arrears on September 15 and December 15 of each year, commencing December 15, 2020.
−Removed: From and including September 15, 2025 through maturity or earlier redemption, the interest rate shall reset quarterly to an interest rate per annum equal to a benchmark rate, which is expected to be Three-Month Term SOFR (as defined in the Second Supplemental Indenture), plus 560.5 basis points, payable quarterly in arrears on March 15, June 15, September 15 and December 15 of each year, commencing on September 15, 2025.
+Added: From and including September 15, 2025 through maturity or earlier redemption, the interest rate shall reset quarterly to an interest rate per annum equal to a benchmark rate, which is Three-Month Term SOFR (as defined in the Second Supplemental Indenture), plus 560.5 basis points, payable quarterly in arrears on March 15, June 15, September 15 and December 15 of each year, commencing on June 15, 2025.
Notwithstanding the foregoing, if the benchmark rate is less than zero, then the benchmark rate shall be deemed to be zero.
Stockholders ’ Equity
−Removed: The Company’s stockholders’ equity remained relatively flat at approximately $1.2 billion at both September 30, 2024, and December 31, 2023.
−Removed: Retained earnings increased by $29 million and was offset by increases in treasury stock of $6 million and accumulated other comprehensive losses of $2 million.
−Removed: As of September 30, 2024, the Company’s tangible common equity ratio and tangible book value per share were 9.71% and $23.85, respectively, compared to 9.25% and $23.14, respectively, as of December 31, 2023.
−Removed: Total goodwill and other intangible assets were $213.3 million as of September 30, 2024, and $214.2 million as of December 31, 2023.
−Removed: The following table shows the reconciliation of common equity to tangible common equity and the tangible common equity ratio.
−Removed: September 30, 2024
+Added: The Company’s stockholders’ equity increased by $11.2 million when compared to December 31, 2024.
+Added: The increase was primarily due to an increase in retained earnings of $11.8 million.
+Added: As of March 31, 2025, the Company’s tangible common equity ratio and tangible book value per share were 9.73% and $24.16, respectively, compared to 9.49% and $23.92, respectively, as of December 31, 2024.
+Added: Total goodwill and other intangible assets were $212.7 million as of March 31, 2025, and $213.0 million as of December 31, 2024.
+Added: The following table reconciles common equity to tangible common equity and the tangible common equity ratio.
+Added: March 31, 2025
December 31, 2024
−Removed: (dollars in thousands, except for share and per share data)
+Added: (dollars in thousands, except for per share data)
Stockholders equity
16 unchanged sentences
The Company and the Bank are subject to regulatory guidelines establishing minimum capital standards that involve quantitative measures of assets, and certain off-balance sheet items, as risk-adjusted assets under regulatory accounting practices.
−Removed: The following is a summary of regulatory capital amounts and ratios as of September 30, 2024 for the Company and the Bank, compared with minimum capital adequacy requirements and the regulatory requirements for classification as a well-capitalized depository institution (for the Bank).
+Added: The following is a summary of regulatory capital amounts and ratios as of March 31, 2025 for the Company and the Bank, compared with minimum capital adequacy requirements and the regulatory requirements for classification as a well-capitalized depository institution (for the Bank).
For Capital Adequacy Purposes
To Be Well-Capitalized Under Prompt Corrective Action Provisions
−Removed: As of September 30, 2024
+Added: As of March 31, 2025
(dollars in thousands)
6 unchanged sentences
To Be Well-Capitalized Under Prompt Corrective Action Provisions
−Removed: As of September 30, 2024
+Added: As of March 31, 2025
(dollars in thousands)
3 unchanged sentences
Total risk-based capital
−Removed: As of September 30, 2024, both the Company and Bank satisfy the capital conservation buffer requirements applicable to them.
+Added: As of March 31, 2025, both the Company and Bank satisfy the capital conservation buffer requirements applicable to them.
The lowest ratio at the Company is the Total Risk Based Capital Ratio which was 3.79% above the minimum buffer ratio and, at the Bank, the lowest ratio was the Total Risk Based Capital Ratio which was 3.29% above the minimum buffer ratio.
3 unchanged sentences
Compared sentence by sentence after normalising whitespace, quotation marks, case and digits, so re-formatting and restated figures do not read as changed language. Wording changes appear as one removal and one addition. The current filing and the prior one are authoritative.