ENGLEWOOD CLIFFS, N.J., April 23, 2026 (GLOBE NEWSWIRE) -- ConnectOne Bancorp, Inc. (NASDAQ:CNOB) (the "Company" or "ConnectOne"), parent company of ConnectOne Bank (the "Bank"), today reported net income available to common stockholders of $36.3 million for the first quarter of 2026 compared with $38.0 million for the fourth quarter of 2025 and $18.7 million for the first quarter of 2025. Diluted earnings per share were $0.72 for the first quarter of 2026 compared with $0.75 for the fourth quarter of 2025 and $0.49 for the first quarter of 2025. Return on average assets was 1.10%, 1.12% and 0.84% for the three months ended March 31, 2026, December 31, 2025 and March 31, 2025, respectively. Return on average tangible common equity was 12.89%, 13.66% and 8.25% for the three months ended March 31, 2026, December 31, 2025 and March 31, 2025, respectively.
Pre-provision net operating revenue ("Operating PPNR") as a percentage of average assets was 1.81%, 1.75% and 1.34% for the quarters ending March 31, 2026, December 31, 2025 and March 31, 2025, respectively. The sequential increase in Operating PPNR was primarily due to a $2.2 million increase in net interest income, partially offset by a $0.9 million increase in operating expenses. Operating net income available to common stockholders was $39.6 million for the first quarter of 2026, $42.0 million for the fourth quarter of 2025 and $19.7 million for the first quarter of 2025. Operating diluted earnings per share were $0.79 for the first quarter of 2026, $0.83 for the fourth quarter of 2025 and $0.51 for the first quarter of 2025. Operating return on average assets was 1.19%, 1.24% and 0.88% for the three months ended March 31, 2026, December 31, 2025 and March 31, 2025, respectively. Operating return on average tangible common equity was 13.35%, 14.27% and 8.59% for the three months ended March 31, 2026, December 31, 2025 and March 31, 2025, respectively. See supplemental tables for a complete reconciliation of GAAP earnings to operating earnings, and other non-GAAP measures.
The decrease in net income available to common stockholders during the first quarter of 2026 when compared to the fourth quarter of 2025 was primarily due to a $2.9 million increase in the provision for credit losses, a $0.9 million increase in noninterest expenses and a $0.9 million increase in income tax expense, which were partially offset by a $2.2 million increase in net interest income and a $0.8 million increase in noninterest income. The first quarter of 2026 included restructuring charges related to the merger with the First of Long Island Corporation ("FLIC") of $2.0 million reflecting our ongoing commitment to streamlining operations and enhancing organizational efficiency. The increase in net income available to common stockholders and diluted earnings per share during the first quarter of 2026 when compared to the first quarter of 2025 was primarily due to a $43.0 million increase in net interest income and a $2.3 million increase in noninterest income, which was partially offset by an increase in noninterest expense of $18.6 million and an increase in income tax expense of $7.5 million. The variances from the first quarter of 2026 to the first quarter of 2025 were primarily due to the merger with FLIC.
"ConnectOne began 2026 with robust momentum, positioning us for what we expect to be a strong year," commented Frank Sorrentino, ConnectOne's Chairman and Chief Executive Officer. "Loans and deposits both grew sequentially at an annualized rate of approximately 10%, while our net interest margin expanded by 12 basis points. Accelerating portfolio loan yields are expected to support continued net interest margin expansion in the quarters ahead, even without further rate cuts."
"Expenses remain well-controlled as we continue to leverage merger synergies and drive additional productivity gains through increasing use of AI workflow across the organization." Mr. Sorrentino added, "During the first quarter, our strong retained earnings supported loan growth, share repurchases, and a 1.7% increase in tangible book value per share; we are now approximately one quarter away from returning to our pre-merger tangible book value per share of $24.16."
"Our credit quality remained solid this quarter. Although 30-59 day delinquencies increased due to one isolated credit relationship, net charge-offs (excluding PCD loans) declined to just 8 basis points annualized, a recent low. The nonaccrual loan ratio also decreased, while criticized and classified asset metrics remained at historically low levels, underscoring our continued portfolio management strength."
"Subsequent to quarter-end, noninterest income continued to build momentum, driven by accelerating SBA loan sale activity. We generated an additional $1.1 million in gains in April, and the pipeline remains robust." Mr. Sorrentino concluded, "Looking ahead to the remainder of the year, we're executing against our strategic priorities and remain well positioned to deliver long-term value for our shareholders in 2026 and beyond."
Dividend Declarations
The Company announced that its Board of Directors declared an increased quarterly cash dividend on its common stock and declared a cash dividend on its outstanding preferred stock. A cash dividend on common stock of $0.195 per share, reflecting an increase of $0.015, or 8.3%, will be paid on June 1, 2026, to common stockholders of record on May 15, 2026. A dividend of $0.328125 per depositary share, representing a 1/40th interest in a share of the Company's 5.25% Fixed Rate Reset Non-Cumulative Perpetual Preferred Stock, Series A, will also be paid on June 1, 2026 to holders of record on May 15, 2026.
Operating Results
Fully taxable equivalent net interest income for the first quarter of 2026 was $110.0 million, an increase of $2.2 million, or 2.1%, from the fourth quarter of 2025, largely due to a 12 basis-point widening of the net interest margin to 3.39% from 3.27%. The margin benefited from an increase in the yield on interest-earning assets, primarily due to loan repricing, combined with a 12 basis-point decrease in the average costs of deposits, including noninterest-bearing deposits, and partially offset by an increased cost in borrowed funds.
Fully taxable equivalent net interest income for the first quarter of 2026 increased $43.4 million, or 65.2%, from the first quarter of 2025, due to a 46 basis-point widening of the net interest margin to 3.39% from 2.93%, and a 42.7% increase in average interest-earning assets. The increase in average interest-earning assets was primarily due to the merger with FLIC. The margin benefited from a 20 basis-point increase in the yield on interest-earning assets and a 49 basis-point decrease in the average costs of deposits, including noninterest-bearing deposits.
Noninterest income was $6.8 million in the first quarter of 2026, $6.0 million in the fourth quarter of 2025 and $4.5 million in the first quarter of 2025. The increase compared to the fourth quarter of 2025 was primarily due to a $1.0 million increase in net gains (losses) on equity securities. The increase compared to the first quarter of 2025 was primarily due to a $1.4 million increase in BOLI income and a $1.3 million increase in deposit, loan and other income, which was partially offset by a $0.4 million decrease in net gains (losses) on equity securities. The year-over-year increases in BOLI income and deposit, loan and other income were primarily due to the merger with FLIC. Extending this positive momentum into the second quarter, the Company realized an additional $1.1 million in SBA loan sale gains in April 2026.
Noninterest expenses were $57.9 million for the first quarter of 2026, $56.9 million for the fourth quarter of 2025 and $39.3 million for the first quarter of 2025. Excluding merger expenses and restructuring charges and branch closing expenses, noninterest expenses totaled $55.7 million in the first quarter of 2026, $55.2 million in the fourth quarter of 2025 and $38.0 million in the first quarter of 2025. The increase of $0.6 million during the first quarter of 2026 when compared to the fourth quarter of 2025 was primarily due to a $1.6 million increase in salaries and employee benefits, which was partially offset by a $0.4 million decrease in FDIC insurance expense and a $0.4 million decrease in amortization of core deposit intangible. The $17.8 million increase in noninterest expenses for the first quarter of 2026 when compared to the first quarter of 2025 was primarily due to a $10.2 million increase in salaries and employee benefits, a $2.7 million increase in occupancy and equipment expenses, a $2.6 million increase in amortization of core deposit intangibles, a $0.8 million increase in other expenses, a $0.7 million increase in professional and consulting expense, and a $0.6 million increase in information technology and communication expenses. The variances from the first quarter of 2026 to the first quarter of 2025 were primarily due to the merger with FLIC.
Income tax expense was $14.7 million for the first quarter of 2026, $13.9 million for the fourth quarter of 2025 and $7.2 million for the first quarter of 2025. The effective tax rates were 28.0%, 26.0% and 26.1% for the first quarter of 2026, fourth quarter of 2025 and first quarter of 2025, respectively. The increase in effective rates when compared to 2025 was primarily due to state and local apportionment factors associated with the FLIC merger.
Asset Quality
The provision for credit losses was $5.2 million for the first quarter of 2026, $2.3 million for the fourth quarter of 2025 and $3.5 million for the first quarter of 2025. In each of the quarters presented, the provision for credit losses reflected net portfolio growth, charges related to individually evaluated loans, and changing macroeconomic forecasts and conditions. The current quarter's provision was driven by higher loan growth and increased qualitative factors, which were partially offset by improved loss drivers within our quantitative CECL model reflecting improved economic forecasts.
Nonperforming assets, which includes nonaccrual loans and other real estate owned (the Bank had no other real estate owned during the periods reported), were $41.6 million as of March 31, 2026, $45.9 million as of December 31, 2025 and $49.9 million as of March 31, 2025. Nonperforming assets as a percentage of total assets improved to 0.29% as of March 31, 2026, versus 0.33% as of December 31, 2025 and 0.51% as of March 31, 2025. The ratio of nonaccrual loans to loans receivable also improved to 0.35%, as of March 31, 2026, versus 0.40% and 0.61%, at December 31, 2025 and March 31, 2025, respectively. The annualized net loan charge-offs ratio (excluding PCD loans) was 0.08% for the first quarter of 2026, 0.17% for the fourth quarter of 2025 and 0.17% for the first quarter of 2025.
The allowance for credit losses ("ACL") represented 1.30%, 1.35% and 1.00% of loans receivable as of March 31, 2026, December 31, 2025 and March 31, 2025, respectively. The ACL decreased $1.2 million to $153.1 million as of March 31, 2026, compared to $154.3 million as of December 31, 2025. The ACL as a percentage of nonaccrual loans was 368.1% as of March 31, 2026, 336.1% as of December 31, 2025 and 165.3% as of March 31, 2025.
Criticized and classified loans as a percentage of loans receivable improved to 2.26% as of March 31, 2026, down from 2.49% as of December 31, 2025 and from 2.79% as of March 31, 2025. Loans past due 30-59 days were 0.81% of loans receivable as of March 31, 2026, 0.19% as of December 31, 2025 and 0.18% as of March 31, 2025. This rise is predominantly due to an interrelated series of credits totaling $63.8 million secured by 19 multifamily NYC rent-regulated properties. We are working with our client to resolve these credits; however, the resulting financial impact cannot be determined at this time.
The Bank maintains a solid reserve position, particularly within its rent-regulated multifamily portfolio, which includes significant credit and fair value marks applicable to the portfolio acquired from FLIC, in addition to qualitative ACL allocations applicable to its legacy portfolio. The following table provides additional information on the Bank's New York City ("NYC") rent-regulated portfolio as of March 31, 2026:
($millions)
PortfolioComposition
% of Total Loans
Unpaid Principal Balance
Offsets (3)
Offset %
Avg. Loan Size
Acquired Portfolio (1)
61.0
%
3.5
%
$
412.5
$
(66.1
)
16.0
%
$
2.4
Legacy ConnectOne (2)
39.0
2.2
263.4
(14.8
)
5.6
2.9
Total Rent-Regulated
100.0
%
5.7
%
$
675.9
$
(80.9
)
12.0
2.6
Note: Rent-regulated includes loans secured by multifamily properties with 50% or greater units subject to NYC rent-stabilization guidelines.
(1) Portfolio acquired in merger with FLIC on June 1, 2025.
(2) Loans originated by the Bank.
(3) Offsets include (i) general reserves plus (ii) for the Acquired Portfolio, the applicable nonaccretable and accretable purchase accounting loan marks and (iii) for Legacy ConnectOne, an additional qualitative reserve applicable to rent-regulated multifamily.
Selected Balance Sheet Items
The Company's total assets were $14.2 billion as of March 31, 2026, compared to $14.0 billion as of December 31, 2025. Loans receivable were $11.7 billion as of March 31, 2026 and $11.5 billion as of December 31, 2025. Total deposits were $11.5 billion as of March 31, 2026 and $11.2 billion as of December 31, 2025.
The Company's total stockholders' equity increased to $1.592 billion as of March 31, 2026 from $1.573 billion as of December 31, 2025. Retained earnings increased $27.3 million, partially offset by an increase in the accumulated other comprehensive loss of $6.2 million. As of March 31, 2026, the Company's tangible common equity ratio and tangible book value per share were 8.64% and $23.93, respectively, compared to 8.62% and $23.52, respectively, as of December 31, 2025. Total goodwill and other intangible assets were $277.3 million as of March 31, 2026, and $280.2 million as of December 31, 2025.
Share Repurchase Program
During the first quarter of 2026, the Company repurchased 90,000 shares of common stock at an average price of $26.21, leaving 551,118 shares authorized for repurchase under the current Board approved repurchase program. The Company may repurchase shares from time to time in the open market, in privately negotiated stock purchases or pursuant to any trading plan that may be adopted in accordance with Rule 10b5-1 of the Securities and Exchange Commission and applicable federal securities laws. The share repurchase plan does not obligate the Company to acquire any particular amount of common stock and the plan may be modified or suspended at any time at the Company's discretion.
Use of Non-GAAP Financial Measures
In addition to the results presented in accordance with Generally Accepted Accounting Principles ("GAAP"), ConnectOne routinely supplements its evaluation with an analysis of certain non-GAAP measures. ConnectOne believes these non-GAAP financial measures, in addition to the related GAAP measures, provide meaningful information to investors in understanding our operating performance and trends. These non-GAAP measures have inherent limitations and are not required to be uniformly applied and are not audited. They should not be considered in isolation or as a substitute for an analysis of results reported under GAAP. These non-GAAP measures may not be comparable to similarly titled measures reported by other companies. Reconciliations of non-GAAP financial measures disclosed in this earnings release to the comparable GAAP measures are provided in the accompanying tables.
First Quarter 2026 Results Conference Call
Management will also host a conference call and audio webcast at 10:00 a.m. ET on April 23, 2026, to review the Company's financial performance and operating results. The conference call dial-in number is 1 (646) 307-1963, access code 8368502. Please dial in at least five minutes before the start of the call to register. An audio webcast of the conference call will be available to the public, on a listen-only basis, via the "Investor Relations" link on the Company's website https://www.ConnectOneBank.com or at http://ir.connectonebank.com.
A replay of the conference call will be available beginning at approximately 1:00 p.m. ET on Thursday, April 23, 2026 and ending on Thursday, April 30, 2026, by dialing 1 (609) 800-9909, access code 8368502. An online archive of the webcast will be available following the completion of the conference call at https://www.ConnectOneBank.com or at http://ir.connectonebank.com.
About ConnectOne Bancorp, Inc.
ConnectOne Bancorp, Inc., is a modern financial services company that operates, through its subsidiary, ConnectOne Bank, and the Bank's fintech subsidiary, BoeFly, Inc. ConnectOne Bank is a high-performing commercial bank offering a full suite of banking & lending products and services that focus on small to middle-market businesses. BoeFly, Inc. is a fintech marketplace that connects borrowers in the franchise space with funding solutions through a network of partner banks. ConnectOne Bancorp, Inc. is traded on the Nasdaq Global Market under the trading symbol "CNOB," and information about ConnectOne may be found at https://www.connectonebank.com.
This news release contains certain forward-looking statements which are based on certain assumptions and describe future plans, strategies, and expectations of the Company. These forward-looking statements are generally identified by use of the words "believe," "expect," "intend," "anticipate," "estimate," "project," or similar expressions. The Company's ability to predict results or the actual effect of future plans or strategies is inherently uncertain. Factors which could have a material adverse effect on the operations of the Company and its subsidiaries include, but are not limited to, those factors set forth in Item 1A – Risk Factors of the Company's Annual Report on Form 10-K, as filed with the U.S. Securities and Exchange Commission, as supplemented by the Company's subsequent filings with the U.S. Securities and Exchange Commission, and changes in interest rates, general economic conditions, legislative/regulatory changes, monetary and fiscal policies of the U.S. Government, including policies of the U.S. Treasury and the Federal Reserve Board, the quality or composition of the loan or investment portfolios, demand for loan products, deposit flows, competition, demand for financial services in the Company's market area, changes in accounting principles and guidelines and the impact of the health emergencies and natural disasters on the Company, its employees and operations, and its customers. These risks and uncertainties should be considered in evaluating forward-looking statements and undue reliance should not be placed on such statements. The Company does not undertake, and specifically disclaims any obligation, to publicly release the result of any revisions which may be made to any forward-looking statements to reflect events or circumstances after the date of such statements or to reflect the occurrence of anticipated or unanticipated events.
Investor Contact:William S. BurnsSenior Executive Vice President & CFO201.816.4474; [email protected]
Media Contact:Shannan Weeks MikeWorldWide732.299.7890; [email protected]
CONNECTONE BANCORP, INC. AND SUBSIDIARIES
CONSOLIDATED CONDENSED STATEMENTS OF FINANCIAL CONDITION
(in thousands)
March 31,
December 31,
March 31,
2026
2025
2025
(unaudited)
(unaudited)
ASSETS
Cash and due from banks
$
39,472
$
92,406
$
49,759
Interest-bearing deposits with banks
304,999
288,489
242,844
Cash and cash equivalents
344,471
380,895
292,603
Investment securities
1,196,384
1,250,938
636,806
Equity securities
19,422
19,287
18,859
Loans held-for-sale
10,222
391
202
Loans receivable
11,735,596
11,453,280
8,201,134
Less: Allowance for credit losses - loans
153,056
154,305
82,403
Net loans receivable
11,582,540
11,298,975
8,118,731
Investment in restricted stock, at cost
51,464
54,722
37,031
Bank premises and equipment, net
54,765
55,285
27,624
Accrued interest receivable
62,473
60,761
46,740
Bank owned life insurance
373,664
370,713
244,651
Right of use operating lease assets
27,960
29,603
13,755
Goodwill
220,235
220,235
208,372
Core deposit intangibles
57,078
59,923
4,360
Other assets
208,883
200,972
109,521
Total assets
$
14,209,561
$
14,002,700
$
9,759,255
LIABILITIES
Deposits:
Noninterest-bearing
$
2,393,938
$
2,420,397
$
1,319,196
Interest-bearing
9,119,115
8,820,218
6,448,034
Total deposits
11,513,053
11,240,615
7,767,230
Borrowings
827,477
903,489
613,053
Subordinated debentures, net
202,050
201,864
80,071
Operating lease liabilities
30,560
32,446
14,737
Other liabilities
44,874
50,946
31,225
Total liabilities
12,618,014
12,429,360
8,506,316
COMMITMENTS AND CONTINGENCIES
STOCKHOLDERS' EQUITY
Preferred stock
110,927
110,927
110,927
Common stock
857,765
857,765
586,946
Additional paid-in capital
38,257
38,763
36,007
Retained earnings
701,154
673,897
643,265
Treasury stock
(78,507
)
(76,116
)
(76,116
)
Accumulated other comprehensive loss
(38,049
)
(31,896
)
(48,090
)
Total stockholders' equity
1,591,547
1,573,340
1,252,939
Total liabilities and stockholders' equity
$
14,209,561
$
14,002,700
$
9,759,255
CONNECTONE BANCORP, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF INCOME
(dollars in thousands, except for per share data)
Three Months Ended
03/31/26
12/31/25
03/31/25
Interest income
Interest and fees on loans
$
168,298
$
167,532
$
115,351
Interest and dividends on investment securities:
Taxable
10,799
11,628
4,987
Tax-exempt
1,978
1,995
1,097
Dividends
935
936
889
Interest on federal funds sold and other short-term investments
2,387
4,249
2,465
Total interest income
184,397
186,340
124,789
Interest expense
Deposits
65,682
70,854
53,992
Borrowings
9,911
8,891
5,041
Total interest expense
75,593
79,745
59,033
Net interest income
108,804
106,595
65,756
Provision for credit losses
5,200
2,300
3,500
Net interest income after provision for credit losses
103,604
104,295
62,256
Noninterest income
Deposit, loan and other income
3,283
3,289
2,006
Income on bank owned life insurance
2,951
2,946
1,584
Net gains on sale of loans held-for-sale
427
631
332
Net gains (losses) on equity securities
135
(846
)
529
Total noninterest income
6,796
6,020
4,451
Noninterest expenses
Salaries and employee benefits
32,768
31,211
22,578
Occupancy and equipment
5,345
5,265
2,680
FDIC insurance
2,000
2,400
1,800
Professional and consulting
3,108
2,908
2,366
Marketing and advertising
926
974
595
Information technology and communications
5,243
5,366
4,604
Merger expenses and restructuring charges
2,125
498
1,320
Branch closing expenses
—
1,275
—
Bank owned life insurance restructuring charge
—
—
327
Amortization of core deposit intangibles
2,845
3,196
279
Other expenses
3,509
3,853
2,756
Total noninterest expenses
57,869
56,946
39,305
Income before income tax expense
52,531
53,369
27,402
Income tax expense
14,709
13,851
7,160
Net income
37,822
39,518
20,242
Preferred dividends
1,509
1,509
1,509
Net income available to common stockholders
$
36,313
$
38,009
$
18,733
Earnings per common share:
Basic
$
0.72
$
0.76
$
0.49
Diluted
0.72
0.75
0.49
ConnectOne's management believes that the supplemental financial information, including non-GAAP measures provided below, is useful to investors. The non-GAAP measures should not be viewed as a substitute for financial results determined in accordance with GAAP, and are not necessarily comparable to non-GAAP financial measures presented by other companies.
CONNECTONE BANCORP, INC.
SUPPLEMENTAL GAAP AND NON-GAAP FINANCIAL MEASURES
As of
Mar. 31,
Dec. 31,
Sept. 30,
Jun. 30,
Mar. 31,
2026
2025
2025
2025
2025
Selected Financial Data
(dollars in thousands)
Total assets
$
14,209,561
$
14,002,700
$
14,023,585
$
13,915,738
$
9,759,255
Loans receivable:
Commercial
1,638,836
1,558,436
1,613,421
1,597,590
1,483,392
Commercial real estate
4,750,508
4,625,143
4,310,159
4,285,663
3,356,943
Multifamily
3,574,336
3,437,080
3,420,465
3,348,308
2,490,256
Commercial construction
571,073
623,902
728,615
681,222
617,593
Residential
1,202,539
1,210,980
1,233,305
1,254,646
256,555
Consumer
1,801
2,017
2,166
1,709
1,604
Gross loans
11,739,093
11,457,558
11,308,131
11,169,138
8,206,343
Net deferred loan fees
(3,497
)
(4,278
)
(4,495
)
(4,661
)
(5,209
)
Loans receivable
11,735,596
11,453,280
11,303,636
11,164,477
8,201,134
Loans held-for-sale
10,222
391
—
1,027
202
Total loans
$
11,745,818
$
11,453,671
$
11,303,636
$
11,165,504
$
8,201,336
Investment and equity securities
$
1,215,806
$
1,270,225
$
1,272,335
$
1,246,907
$
655,665
Goodwill and other intangible assets
277,313
280,158
278,730
281,926
212,732
Deposits:
Noninterest-bearing demand
$
2,393,938
$
2,420,397
$
2,513,102
$
2,424,529
$
1,319,196
Time deposits
3,010,971
2,796,877
2,977,952
3,065,015
2,550,223
Other interest-bearing deposits
6,108,144
6,023,341
5,878,241
5,788,943
3,897,811
Total deposits
$
11,513,053
$
11,240,615
$
11,369,295
$
11,278,487
$
7,767,230
Borrowings
$
827,477
$
903,489
$
833,443
$
783,859
$
613,053
Subordinated debentures (net of debt issuance costs)
202,050
201,864
201,677
276,500
80,071
Total stockholders' equity
1,591,547
1,573,340
1,538,344
1,496,431
1,252,939
Quarterly Average Balances
Total assets
$
13,999,581
$
13,963,138
$
14,050,585
$
11,108,430
$
9,748,605
Loans receivable:
