Form 4: ConnectOne Bancorp CRO Reports DSU Tax Withholdings

ConnectOne Bancorp's EVP & Chief Risk Officer, Mark J. Pappas, reported the withholding of shares for tax purposes related to the vesting of deferred stock units.

Summary

• Mark J. Pappas, EVP & Chief Risk Officer of ConnectOne Bancorp, Inc. (CNOB), reported changes in beneficial ownership of common stock.
• On March 20, 2026, 440 shares of common stock were disposed of at a price of $25.95 per share. This transaction reflects shares withheld for taxes upon the vesting of deferred stock units granted on March 20, 2025.
• On March 23, 2026, 514 shares of common stock were disposed of at a price of $26.72 per share. This transaction reflects shares withheld for taxes upon the vesting of deferred stock units granted on March 22, 2024.
• Following these reported transactions, Mark J. Pappas directly beneficially owns 4,256 shares of ConnectOne Bancorp, Inc. common stock.

Sentiment

Score: 5

Explanation: StockSavvy.ai views this as a neutral event, reflecting routine executive compensation mechanics rather than a discretionary sale or a significant change in the executive's investment thesis or the company's operational performance.

Positives

• The vesting of deferred stock units indicates the successful fulfillment of performance or tenure conditions for the executive, aligning executive incentives with long-term company performance.

Negatives

• A total of 954 shares were withheld for tax purposes across two transactions, resulting in a reduction of the executive's direct beneficial ownership.

Industry Context

StockSavvy.ai notes that the reported transactions, involving the withholding of shares for tax purposes upon the vesting of deferred stock units, are a standard and routine practice in executive compensation across the financial services industry. These are not discretionary sales and typically do not reflect a change in the executive's sentiment towards the company or its future prospects.

Comparison to Industry Standards

• These transactions are standard practice for equity compensation in the financial services industry. Many companies, such as JPMorgan Chase & Co. (JPM) or Bank of America Corporation (BAC), utilize similar deferred stock unit (DSU) programs where a portion of vested shares is automatically withheld to cover tax obligations, rather than requiring the executive to fund the tax liability out-of-pocket.

Stakeholder Impact

• Shareholders: Minimal direct impact as these are routine compensation-related transactions and do not signal a change in company fundamentals or executive confidence.
• Employees: No direct impact on the broader employee base.

Key Dates

Recommendation

The filing details routine tax-related share withholdings upon the vesting of deferred stock units for an executive. These are not discretionary sales and do not indicate a change in the company's fundamentals or the executive's long-term view. Therefore, the filing itself does not warrant a change in investment recommendation, maintaining a 'hold' stance based solely on this information.

Keywords

ConnectOne Bancorp, CNOB, Form 4, insider transaction, beneficial ownership, deferred stock units, DSU, tax withholding, executive compensation