ConnectOne Bancorp, Inc. Segments Disclosure

Note 24 – Segment Information

 

The Company's reportable segment is determined by the Chief Executive Officer, who is designated the Chief Operating Decision Maker ("CODM"), based upon information about the Company's products and services offered, primarily banking operations. The segment is also distinguished by the level of information provided to the CODM, who uses such information to review performance of various components of the business (such as branches and subsidiary banks), which are then aggregated if operating performance, products/services, and customers are similar. The CODM will evaluate the financial performance of the Company's business components such as by evaluating revenue streams, significant expenses, and budget to actual results in assessing the Company's segment and in the determination of allocating resources. The CODM uses revenue streams to evaluate product pricing and significant expenses to assess performance and evaluate return on assets. The CODM uses consolidated net income to benchmark the Company against its competitors. The benchmarking analysis coupled with monitoring of budget to actual results are used in assessment performance and in establishing compensation. Loans, investments, and deposits provide the revenues in the banking operation. Interest expense, provision for credit losses, and payroll provide the significant expenses in the banking operation. All operations are domestic.  

 

Accounting policies for segments are the same as those described in Note 1a. Segment performance is evaluated using consolidated Bank net income. Information reported internally for performance assessment by the CODM follows, inclusive of reconciliations of significant segment totals to the financial statements:

 

		Consolidated Bank
		2025				2024				2023
(dollars in thousands)
Interest income		$	644,868			$	517,889			$	490,065
Noninterest income			33,361				16,563				14,131
Total segment income		$	678,229			$	534,452			$	504,196
Less:
Interest expense			276,750				265,314				229,789
Segment net interest income and noninterest income			401,479				269,138				274,407
Less:
Provision for credit losses			47,000				13,800				8,200
Salaries and employee benefits			111,423				90,053				88,223
Other segment items*			116,575				61,590				55,613
Income tax expense			32,300				24,673				29,955
Segment consolidated net income		$	94,181			$	79,022			$	92,416
Other segment disclosures
Interest income		$	644,868			$	517,889			$	490,065
Interest expense			276,750				265,314				229,789
Depreciation			6,087				4,422				4,503
Amortization of core deposit intangibles			7,922				1,235				1,438
Other significant noncash items:
Provision for credit losses			47,000				13,800				8,200
Segment assets			13,993,791				9,870,788				9,848,491
Total expenses for segment assets			584,048				455,431				411,781
Reconciliation of assets
Total assets for segment		$	13,993,791			$	9,870,788			$	9,848,491
Other assets			8,909				8,812				7,112
Total consolidated assets		$	14,002,700			$	9,879,600			$	9,855,603

 

*Other segment items for the consolidated Bank include expenses for occupancy and equipment, FDIC insurance, professional and consulting, marketing and advertising, information technology and communications, restructuring and exit charges, merger expenses, branch closing expenses and other expenses.