Tyler Cacciatori's questions to ConnectOne Bancorp Inc (CNOB) leadership • Q2 2025
Question
Tyler Cacciatori, on for Matt Breeze at Stephens Inc., asked for the specific cap rates used in the purchase accounting for the acquired rent-regulated housing portfolio. He also inquired about the outlook for growing DDA balances above 20% of total deposits and the expected overall deposit composition. Lastly, he requested the current yields on the loan pipeline and an update on near-term loan growth projections.
Answer
Senior EVP & CFO William Burns stated that the cap rates used for purchase accounting ranged from 6.5% to 8.5%, reflecting a conservative buyer's perspective. Chairman & CEO Frank Sorrentino expressed confidence in continuing to grow DDA balances, citing opportunities in C&I and the acquired Long Island market. Regarding loan growth, Burns noted a pipeline yield of 6.77% and projected low-to-mid single-digit growth, attributing the modest pace to elevated, but often welcome, loan payoffs.