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EXHIBIT 99.1 ConnectOne Bancorp , Inc. Reports Second Quarter 2021 Results ; Declares Common Dividend ENGLEWOOD CLIFFS , N.J. , July 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 $ 32.2 million for the second quarter of 2021 compared with $ 33.0 million for the first quarter of 2021 and $ 14.8 million for the second quarter of 2020. Diluted earnings per share were $ 0.81 for the second quarter of 2021 compared with $ 0.82 in the first quarter of 2021 and $ 0.37 in the second quarter of 2020. The decrease in net income and diluted earnings per share from the first quarter of 2021 was primarily due to a $ 4.1 million decrease in the release of provision for credit losses , partially offset by a $ 1.9 million increase in net interest income , a $ 1.0 million increase in noninterest income , and a $ 0.2 million decrease income tax expense . The increase in net income and diluted earnings per share from the second quarter of 2020 was primarily due to a $ 16.7 million decrease in the provision for credit losses , a $ 2.2 million increase in net interest income , a $ 6.8 million decrease in noninterest expenses , offset by an $ 8.1 million increase in income tax expense . Frank Sorrentino , ConnectOne's Chairman and Chief Executive Officer stated , " We are extremely pleased with our second quarter results highlighted by strong earnings , continued net interest margin expansion , an increase in noninterest income and best - in - class efficiency . We continued to deliver outstanding performance metrics , further solidifying our status as a top performer in the banking industry . This quarter's pre - tax , pre - provision earnings as a percent of assets was 2.19 % , return on assets was 1.71 % , our return on tangible common equity was 17.8 % while our tangible book value per share increased another 4 % sequentially , to $ 18.76 . " " Our proactive , client - first approach has resulted in robust lending opportunities across our markets and beyond , delivering strong second quarter loan growth , especially towards the end of period , resulting in annualized sequential loan growth , net of Paycheck Protection Program ( “ PPP ” ) forgiveness , in excess of 20 % . We remain focused on leveraging our strong technological foundation by investing in infrastructure , communication tools and digital channels to remain well- positioned for continued growth . During the quarter we benefited once again from BoeFly's involvement in the latest round of PPP , as our fintech subsidiary continues to increase its relationships with borrowers and banking partners , further driving its revenue growth . " " ConnectOne will continue to pursue attractive opportunities to expand our valuable franchise . While we remain disciplined in our approach to growth , the dislocation in our marketplace -- resulting directly from increased M & A activity -- provides ConnectOne with meaningful opportunities to expand , grow and leverage our franchise organically . " Dividend Declaration The Company announced that its Board of Directors declared a cash dividend on its common stock of $ 0.11 per share . The dividend will be paid on September 1 , 2021 to shareholders of record on August 16 , 2021 . Operating Results Fully taxable equivalent net interest income for the second quarter of 2021 was $ 63.4 million , an increase of $ 1.8 million , or 3.0 % , from the first quarter of 2021 resulting primarily from a 0.7 % increase in average interest - earning assets , and a 4 basis - point widening of the net interest margin to 3.60 % from 3.56 % . Excluding purchase accounting adjustments , the adjusted net interest margin was 3.49 % for the second quarter of 2021 and 3.44 % for the first quarter of 2021. The net interest margin widened as a result of continued improvement in the Bank's cost and mix of funding sources , which more than offset a declining yield on loans and investment securities . This was the seventh consecutive quarter that the Bank's net interest margin widened . Included in interest income in both the first and second quarters of 2021 was the accretion of PPP fee income of approximately $ 2.3 million . Remaining deferred and unrecognized PPP fees were $ 9.4 million as of June 30 , 2021 . Fully taxable equivalent net interest income for the second quarter of 2021 increased by $ 2.2 million , or 3.5 % , from the second quarter of 2020. The increase from the second quarter of 2020 resulted primarily from a 16 basis - point widening of the net interest margin to 3.60 % from 3.44 % , offset by a 1.5 % decrease in interest- earning assets , largely due to lower levels of PPP loans . The widening of the net interest margin resulted from a 53 basis - point reduction in the cost of interest- bearing liabilities , partially offset by a 27 basis - point reduction in the yield on average interest - earning assets . The Company continues to gain momentum in building core noninterest revenue . Noninterest income was $ 4.5 million in the second quarter of 2021 , $ 3.4 million in the first quarter of 2021 and $ 4.6 million in the second quarter of 2020. Non - core items included , during the current quarter , $ 0.7 million in BoeFly PPP referral income and $ 0.2 million in securities gains ; during the first quarter 2021 , $ 0.7 million gain on the sale of branches and a $ 0.2 million loss on equity securities ; and during the second quarter 2020 , $ 2.3 million of BoeFly PPP referral income . Excluding the aforementioned non - core items , noninterest income increased to $ 3.6 million during the second quarter of 2021 from $ 2.9 million during the first quarter of 2021 and $ 2.3 million during the second quarter of 2020 . Primary contributors to the increase are gains on the sale of commercial and SBA loans , and BoeFly's growing business volumes . Noninterest expenses totaled $ 26.3 million for the second quarter of 2021 , $ 26.5 million for the first quarter of 2021 and $ 33.1 million for the second quarter of 2020. Noninterest expenses decreased $ 0.2 million from the first quarter of 2021 which resulted from decreases in FDIC insurance expense of $ 0.4 million and salaries and employee benefits of $ 0.3 million , partially offset by increases in other expenses of $ 0.3 million , professional and consulting expenses of $ 0.2 million and data processing of $ 0.1 million . Included in noninterest expenses during the second quarter of 2020 were merger - related expenses of $ 5.2 million and an additional $ 2.3 million in expenses related to the BoeFly acquisition . Excluding these two items , noninterest expenses during the second quarter of 2021 increased by $ 0.7 million when compared to the second quarter of 2020. This increase is mainly attributable to increases in salaries and employee benefits of $ 0.8 million , professional and consulting expenses of $ 0.4 million and other expenses of $ 0.2 million , partially offset by decreases in FDIC insurance expense of $ 0.5 million and marketing and advertising expenses of $ 0.1 million . The Company continues to invest in building its revenue generating capabilities , which is expected to increase non - interest expenses in the second half of 2021. Notwithstanding these expected expense increases , the Company remains focused on maintaining an efficiency ratio of approximately 40 % or lower . Income tax expense was $ 10.7 million for the second quarter of 2021 , $ 10.9 million for the first quarter of 2021 and $ 2.5 million for the second quarter of 2020 . The effective tax rates for the second quarter of 2021 , first quarter of 2021 and second quarter of 2020 were 24.8 % , 24.8 % and 14.5 % , respectively . The higher effective tax rate during the first half of 2021 when compared to the second quarter of 2020 resulted from a lower proportion of income from non - taxable sources . Asset Quality