Connectone Bancorp, Inc. Announces Third Quarter 2026 Results Including Balance Sheet Restructuring and Repositioning
Key Highlights
- ➤Operating EPS $0.95, up from $0.84 in Q2 2026 and $0.70 year-over-year
- ➤$750 million multifamily loan sale targets non-relationship exposures; closing expected late October
- ➤$23.0 million pretax restructuring charge reduced GAAP third-quarter EPS to $0.59
- ➤Net interest margin expanded to 3.44%; fully taxable equivalent NII rose 14.8% year-over-year
- ➤CRE concentration projected to decline to 397%; NYC rent-stabilized exposure to approximately 2% of loans
Expert Statements
Frank Sorrentino, Chairman and Chief Executive Officer of ConnectOne Bancorp
“Our core performance was strong and reflects the successful execution of our relationship-driven banking strategy. Operating PPNR exceeded 2% of average assets and operating return on tangible common equity topped 15%”
Frank Sorrentino, Chairman and Chief Executive Officer of ConnectOne Bancorp
“Loans and average client deposits each grew at an annualized rate of about 11%, and our net interest margin widened to 3.44% despite higher short-term rates and a competitive funding environment. Disciplined expense management kept costs well controlled, and credit quality metrics improved.”
Frank Sorrentino, Chairman and Chief Executive Officer of ConnectOne Bancorp
“Furthermore, we executed a definitive agreement to sell a pool of up to approximately $750 million of multifamily loans, executing on the balance sheet repositioning we have been contemplating. By selectively divesting non-relationship loans, this transaction reduces our CRE and rent-stabilized concentrations, strengthens key financial metrics and enhances our financial flexibility, while largely preserving our earnings power.”
Frank Sorrentino, Chairman and Chief Executive Officer of ConnectOne Bancorp
“As we approach year-end, we remain focused on operational excellence, disciplined growth and deepening client relationships. With a stronger balance sheet and solid momentum in our core business, we believe ConnectOne is well positioned to create long-term value for our shareholders.”
OPERATING PERFORMANCE ACCELERATES PPNR RATIO SURPASSES 2% AND OPERATING RETURN ON TANGIBLE COMMON EQUITY TOPS 15% KEY METRICS STRENGTHENED BY BALANCE SHEET RESTRUCTURING TOTAL LOANS AND AVERAGE CLIENT DEPOSITS BOTH ACHIEVE 11% SEQUENTIAL ANNUALIZED GROWTH NET INTEREST MARGIN EXPANDS TO 3.44% COMMON AND PREFERRED DIVIDENDS DECLARED
ENGLEWOOD CLIFFS, N.J., Oct. 22, 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 $29.9 million for the third quarter of 2026 compared with $40.2 million for the second quarter of 2026 and $39.5 million for the third quarter of 2025. Diluted earnings per share was $0.59 for the third quarter of 2026 compared with $0.80 for the second quarter of 2026 and $0.78 for the third quarter of 2025. Return on average assets was 0.86%, 1.17% and 1.16% for the three months ended September 30, 2026, June 30, 2026 and September 30, 2025, respectively. Return on average tangible common equity was 10.1%, 13.8% and 14.7% for the three months ended September 30, 2026, June 30, 2026 and September 30, 2025, respectively. Third quarter results include a $23.0 million pretax charge related to the balance sheet restructuring and repositioning, discussed below.
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