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EXHIBIT 99.1 ConnectOne Bancorp , Inc. Reports Solid Third Quarter 2021 Results ; Declares 18 % Increase in Quarterly Common Dividend and Increases Share Repurchase Program by 2 Million Shares ENGLEWOOD CLIFFS , N.J. , Oct. 28 , 2021 ( GLOBE NEWSWIRE ) -- ConnectOne Bancorp , Inc. ( Nasdaq : CNOB ) ( the “ Company ” or “ ConnectOne ” ) , parent company of ConnectOne Bank ( the " Bank ” ) , today reported net income of $ 32.1 million for the third quarter of 2021 , compared with $ 32.2 million for the second quarter of 2021 and $ 24.8 million for the third quarter of 2020. Diluted earnings per share were $ 0.80 for the third quarter of 2021 compared with $ 0.81 in the second quarter of 2021 and $ 0.62 in the third quarter of 2020. The $ 0.1 million decrease in net income and $ 0.01 decrease in diluted earnings per share versus the second quarter of 2021 were primarily due an increase in the provision for credit losses of $ 2.7 million , an increase in noninterest expenses of $ 1.9 million , and a decrease in noninterest income of $ 0.5 million , largely offset by an increase in net interest income of $ 5.2 million . The $ 7.3 million increase in net income and $ 0.18 increase in diluted earnings per share versus the third quarter of 2020 were due to an increase in net interest income of $ 7.7 million , an increase in noninterest income of $ 0.5 million , and a decrease in the provision for credit losses of $ 3.9 million , partially offset by increases noninterest expenses of $ 1.7 million and income tax expense of $ 3.1 million . Pre - tax , pre - provision net revenue ( " PPNR " ) increased to $ 44.1 million , reflecting a 6.9 % sequential increase from the second quarter of 2021 and a 17.3 % increase from the prior year quarter . Frank Sorrentino , ConnectOne's Chairman and Chief Executive Officer stated , " ConnectOne continued to successfully execute upon our operating strategies during the third quarter . We had solid net revenue growth and core loan growth , while our net interest margin widened for the eighth consecutive quarter , and we continued to grow and strengthen core noninterest income sources , including our fintech subsidiary BoeFly . During the quarter we further fortified our capital position with a $ 100 + million preferred equity capital raise and , going into the end of the year , our balance sheet is positioned to continue to outperform from gains in market and client share . Operationally , we again delivered outstanding performance metrics . Return on assets was 1.62 % , return on tangible common equity was 16.9 % and PPNR as a percent of assets increased once again to 2.23 % . Meanwhile , our efficiency ratio remained among the best in the industry at 38.1 % and tangible book value per share increased by 4 % sequentially and by more than 15 % over the past year to $ 19.43 . Average loans , excluding PPP , increased by 6.8 % sequentially , as our proactive , client - first approach resulted in robust lending opportunities across our market . " " Our year - to - date performance has been very strong on all fronts . Today's common stock dividend increase - the second increase the Board approved this year - reflects our growing capital base , the strength and stability of our profitability , and our commitment to driving long - term value for our shareholders , " Mr. Sorrentino added . “ Looking ahead , our outlook for the remainder of 2021 is directionally positive . ConnectOne remains well - positioned to capitalize on meaningful growth opportunities and , as we plan for a robust 2022 , we look forward to our continued ability to scale . " Dividend Declaration The Company announced that its Board of Directors declared a cash dividend on its common stock of $ 0.13 per share , reflecting an 18 % sequential increase in our cash dividend . The dividend , which reflects the second $ 0.02 increase declared during 2021 , will be paid on December 1 , 2021 to common shareholders of record on November 15 , 2021 . Operating Results Fully taxable equivalent net interest income for the third quarter of 2021 was $ 68.8 million , an increase of $ 5.3 million , or 8.4 % , from the second quarter of 2021 resulting primarily from a 3.7 % increase in average interest - earning assets , and a 13 basis - point widening of the net interest margin to 3.73 % from 3.60 % . Excluding purchase accounting adjustments , the adjusted net interest margin was 3.63 % for the third quarter of 2021 and 3.49 % for the second quarter of 2021 . The net interest margin widened as a result of continued improvement in the Bank's cost and mix of funding sources , an increase in the accretion of Paycheck Protection Program ( " PPP " ) fee income due to accelerated forgiveness activity , and the recovery of back - interest after the successful resolution of a nonaccrual loan . These items more than offset a declining core yield on loans receivable and investment securities . This was the eighth consecutive quarter that the Bank's net interest margin widened . Included in interest income in both the third and second quarter of 2021 was the accretion of PPP fee income of $ 3.4 million and $ 2.3 million , respectively . Remaining deferred and unrecognized PPP fees were $ 6.0 million as of September 30 , 2021 . Fully taxable equivalent net interest income for the third quarter of 2021 increased by $ 7.8 million , or 12.7 % , from the third quarter of 2020. The increase from the third quarter of 2020 resulted primarily from a 24 basis - point widening of the net interest margin to 3.73 % from 3.49 % . The widening of the net interest margin resulted from a 60 basis - point reduction in the cost of interest - bearing liabilities , partially offset by a 24 basis - point reduction in the yield on average interest- earning assets . Noninterest income was $ 4.0 million in the third quarter of 2021 , $ 4.5 million in the second quarter of 2021 and $ 3.5 million in the third quarter of 2020. The decrease in noninterest income of $ 0.5 million from the second quarter of 2021 was primarily attributable to a decrease in deposit , loan and other income of $ 0.5 million , reflecting lower referral fees related to BoeFly's participation in the PPP . The increase of $ 0.5 million in noninterest income when compared to the third quarter of 2020 was attributable to increases in sale of loans held - for - sale of $ 0.5 million and deposit , loan and other income of $ 0.4 million , partially offset by a decrease in BOLI income of $ 0.3 million and a net loss on equity securities of $ 0.1 million . Noninterest expenses totaled $ 28.2 million for the third quarter of 2021 , $ 26.3 million for the second quarter of 2021 and $ 26.5 million for the third quarter of 2020. The increase in noninterest expenses of $ 1.9 million from the second quarter of 2021 was primarily attributable to increases in salaries and employee benefits of $ 1.5 million , reflecting the Bank's recent expansion leading to a 5 % sequential increase in staff count ; other expenses of $ 0.7 million , partially a result of increased technology investments ; and professional and consulting fees of $ 0.1 million . These increases were partially offset by decreases in occupancy and equipment of $ 0.3 million and data processing of $ 0.1 million . The increase in noninterest expenses of $ 1.7 million from the third quarter of 2020 was primarily attributable to increases in salaries and employee benefits of $ 1.6 million , other expenses $ 1.2 million professional and consulting of $ 0.3 million and marketing and advertising of $ 0.1 million , partially offset by decreases in FDIC insurance $ 0.6 million and occupancy and equipment of $ 0.9 million . The Company's expense base growth reflects its commitment to organic expansion through investments in people and technology , while remaining focused on maintaining best - in- class operating efficiency . Income tax expense was $ 10.9 million for the third quarter of 2021 , $ 10.7 million for the second quarter of 2021 and $ 7.8 million for the third quarter of 2020. The