Page 1

EXHIBIT 99.1 ConnectOne Bancorp , Inc. Reports First Quarter 2021 Results ; Increases Common Dividend ENGLEWOOD CLIFFS , N.J. , April 29 , 2021 ( GLOBE NEWSWIRE ) -- ConnectOne Bancorp , Inc. ( Nasdaq : CNOB ) ( the " Company " or " ConnectOne " ) , parent company of ConnectOne Bank ( the " Bank ” ) , today reported net income of $ 33.0 million for the first quarter of 2021 compared with $ 25.6 million for the fourth quarter of 2020 and $ 6.0 million for the first quarter of 2020. Diluted earnings per share were $ 0.82 for the first quarter of 2021 compared with $ 0.64 in the fourth quarter of 2020 and $ 0.15 in the first quarter of 2020. The increase in net income and diluted earnings per share from the fourth quarter of 2020 was primarily due to a $ 5.8 million recapture of credit loss reserves in the current quarter reflecting the impact of the improved economic outlook on the current expected credit losses ( " CECL " ) accounting estimate , compared with a $ 5.0 million provision in the fourth quarter of 2020 . Frank Sorrentino , ConnectOne's Chairman and Chief Executive Officer stated , " ConnectOne's strong first quarter results reflected continued margin expansion and industry - leading operating efficiency . While our return on assets and return on tangible common equity expanded significantly to 1.78 % and 19.08 % , respectively , largely due to the recapture of credit loss reserves , our operating net revenue to average assets also increased , further solidifying our status as a top performer in the banking industry . " " Operationally , we're using the full range of the Company's banking expertise to help our clients and had a robust quarter in terms of overall loan production . While our first quarter loan growth was offset by paydowns , resulting from an excessive amount of liquidity in the marketplace , we're seeing strong demand , bolstered by an improving operating environment in the New York Metropolitan area . We are very pleased with our existing loan pipeline , which is at the highest level in the Company's history and expect net loan growth to accelerate in the quarters ahead . Further , as vaccines continue to work their way through our core footprint , we're anticipating a significant uptick in our client activity in the near future . " " ConnectOne's investments in infrastructure , communication tools and digital channels have been instrumental in our success , and we will continue to leverage our strong technological foundation as we further develop our hybrid banking model . We also continue to gain momentum building out our SBA leading platform , which is serving our existing clients and supporting small businesses in the communities where we do business . " Mr. Sorrentino added , " ConnectOne , as a growth company , is well - positioned to take advantage of an economic turnaround . We are also pleased to announce an increase in our common stock dividend as well as the reinstatement of our share repurchase program reflecting our strong operating performance , our growing capital base , and the confidence we have in ConnectOne's long - term outlook . " Dividend Declaration The Company announced that its Board of Directors declared a cash dividend on its common stock of $ 0.11 per share . This cash dividend represents a $ 0.02 , or a 22.2 % increase from the prior common dividend declared on January 28 , 2021. The dividend will be paid on June 1 , 2021 to shareholders of record on May 17 , 2021 . Operating Results Fully taxable equivalent net interest income for the first quarter of 2021 was $ 61.6 million , a decrease of $ 0.3 million , or 0.4 % , from the fourth quarter of 2020 , resulting primarily from a 0.3 % decrease in average interest - earning assets , and partially offset by a 6 basis - point widening of the net interest margin to 3.56 % from 3.50 % . While overall interest - earning assets decreased , loans increased approximately $ 33.3 million when compared to the fourth quarter of 2020 , largely due to Paycheck Protection Program ( " PPP ” ) originations . Included in net interest income were purchase accounting adjustments of $ 2.1 million during the first quarter of 2021 and $ 2.2 million during the fourth quarter of 2020. Excluding these purchase accounting adjustments , the adjusted net interest margin was 3.44 % for the first à quarter of 2021 and 3.37 % for the fourth quarter of 2020. The net interest margin widened as a result of lower cash balances as well as continued improvement in the Bank's cost and mix of funding sources including the redemption of high - coupon subordinated debt , which more than offset a declining yield on loans and investment securities . This was the sixth consecutive quarter that the Bank's net interest margin widened . Included in interest income in the first quarter of 2021 was PPP fee income of approximately $ 2.3 million , compared to $ 2.4 million in the fourth quarter of 2020. Deferred and unrecognized PPP fees were $ 9.9 million as of March 31 , 2021 . Fully taxable equivalent net interest income for the first quarter of 2021 increased by $ 5.8 million , or 10.4 % , from the first quarter of 2020. The increase from the first quarter of 2020 resulted primarily from a 6.4 % increase in average interest - earning assets , largely due to PPP originations , and a 15 basis - point widening of the net interest margin to 3.56 % from 3.41 % . The widening of the net interest margin resulted from a 75 basis - point reduction in the cost of funding interest- earning assets , partially offset by a 49 basis - point reduction in the yield on average interest - earning assets . Noninterest income was $ 3.4 million in the first quarter of 2021 , $ 3.4 million in the fourth quarter of 2020 and $ 2.9 million in the first quarter of 2020. During the first quarter of 2021 , the Bank completed the sale of two branches , resulting in a gain of $ 0.7 million , which was included in noninterest income . Excluding the branch sale , noninterest income decreased by $ 0.7 million from the fourth quarter of 2020 due primarily to decreases in income on bank owned life insurance of $ 0.3 million , net gains on equity securities of $ 0.2 million , net gains on sale of loans held - for - sale of $ 0.1 million and deposit , loan and other income of $ 0.1 million . Total noninterest income , excluding the branch sale , decreased $ 0.1 million from the first quarter of 2020. The decrease was primarily attributable to a decrease in net gains on sale of securities of $ 0.4 million , partially offset by an increase in net gains on sale of loans held - for - sale of $ 0.3 million . Noninterest expenses totaled $ 26.5 million for first quarter of 2021 , $ 26.4 million for the fourth quarter of 2020 and $ 35.1 million for the first quarter of 2020 . Noninterest expenses increased $ 0.1 million from the fourth quarter of 2020 , with the increases primarily coming from higher salaries and employee benefits of $ 1.0 million , offset by decreases in occupancy and equipment of $ 0.3 million , professional and consulting of $ 0.3 million and other expenses of $ 0.3 million . The increase in salaries and employee benefits of $ 1.0 million during the first quarter of 2021 was primarily attributable to seasonal increases in payroll taxes and higher incentive - based , stock compensation expense . Included in noninterest expenses for the first quarter of 2020 were merger related expenses totaling $ 9.5 million . Excluding merger - related expenses , noninterest expenses increased by $ 0.9 million from the first quarter of 2020 due primarily to increases in salaries and employee benefits of $ 1.0 million , professional and consulting of $ 0.4 million , partially offset by decreases in other expenses of $ 0.4 million and amortization of core deposit intangible of $ 0.1 million . Income tax expense was $ 10.9 million for the first quarter of 2021 , $ 7.8 million for the fourth quarter of 2020 and $ 1.0 million for the first quarter of 2020. The effective tax rates for the first quarter of 2021 , fourth quarter of 2020 and first quarter of 2020 were 24.8 % , 23.3 % and 14.8 % , respectively . The differences in the