Tim Delacion's questions to ConnectOne Bancorp Inc (CNOB) leadership • Q2 2025
Question
Tim Delacion, filling in for Daniel Tamayo at Raymond James, asked about the drivers behind the increase in the securities portfolio yield. He also sought clarification on whether the previously guided five basis point positive impact from a 25 basis point rate cut still holds post-merger, and questioned the future trajectory of reserve levels.
Answer
Senior EVP & CFO William Burns explained that the securities portfolio increased due to the acquisition and that restructurings were performed on the legacy portfolio to improve interest sensitivity and earnings. He confirmed the guidance of a five basis point margin benefit per rate cut remains valid. Regarding reserves, Burns noted the Q2 provision was a one-time adjustment due to the merger's impact on CECL modeling and that the non-accretable mark was conservatively set.