ConnectOne Bancorp, Inc. Reports Second Quarter 2026 Results

About this update from Connectone Bancorp, Inc.

OPERATING PERFORMANCE ACCELERATES SEQUENTIAL LOAN GROWTH OF 5% AND CORE DEPOSIT GROWTH OF 8%, ANNUALIZED NET INTEREST MARGIN WIDENS TO 3.42% TANGIBLE BOOK VALUE PER SHARE INCREASES COMMON & PREFERRED DIVIDENDS PER SHARE DECLARED ENGLEWOOD CLIFFS, N.J., July 23, 2026 (GLOBE NEWSWIRE) -- ConnectOne Bancorp, Inc. (Nasdaq: CNOB) (the “Company” or “ConnectOne”), parent company of ConnectOne Bank (the “Bank”), today reported net income (loss) available to common stockholders of $40.2 million for the second quarter of 2026 compared with $36.3 million for the first quarter of 2026 and $(21.8) million for the second quarter of 2025. Diluted earnings (loss) per share were $0.80 for the second quarter of 2026 compared with $0.72 for the first quarter of 2026 and $(0.52) for the second quarter of 2025. Return on average assets was 1.17%, 1.10% and (0.73)% for the three months ended June 30, 2026, March 31, 2026 and June 30, 2025, respectively. Return on average tangible common equity was 13.79%, 12.89% and (8.42)% for the three months ended June 30, 2026, March 31, 2026 and June 30, 2025, respectively. Pre-provision net operating revenue ("Operating PPNR") as a percentage of average assets was 1.94%, 1.81% and 1.52% for the quarters ending June 30, 2026, March 31, 2026 and June 30, 2025, respectively. The sequential increase in Operating PPNR was primarily due to a $4.8 million increase in net interest income, combined with a $0.4 million decrease in operating expenses. Operating net income available to common stockholders was $42.2 million for the second quarter of 2026, $39.6 million for the first quarter of 2026 and $23.1 million for the second quarter of 2025. Operating diluted earnings per share were $0.84 for the second quarter of 2026, $0.79 for the first quarter of 2026 and $0.55 for the second quarter of 2025. Operating return on average assets was 1.23%, 1.19% and 0.89% for the three months ended June 30, 2026, March 31, 2026 and June 30, 2025, respectively. Operating return on average tangible common equity was 13.81%, 13.35% and 9.29% for the three months ended June 30, 2026, March 31, 2026 and June 30, 2025, respectively. See supplemental tables for a complete reconciliation of GAAP earnings to operating earnings, and other non-GAAP measures. The increase in net income available to common stockholders during the second quarter of 2026 when compared to the first quarter of 2026 was primarily due to a $4.8 million increase in net interest income, a $1.1 million increase in noninterest income, and a $2.5 million decrease in noninterest expenses, which were partially offset by a $3.1 million increase in the provision for credit losses and a $1.5 million increase in income tax expense. The first quarter of 2026 included merger expenses and restructuring charges related to the merger with The First of Long Island Corporation ("FLIC") of $2.1 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 second quarter of 2026 when compared to the second quarter of 2025 was primarily due to a $34.8 million increase in net interest income, a $27.4 million decrease in the provision for credit losses, a $2.7 million increase in noninterest income, and a $18.2 million decrease in noninterest expense, which was partially offset by a $21.2 million increase in income tax expense. The decrease in the provision for credit losses was driven primarily by the initial $27.4 million provision recognized in the second quarter of 2025 in connection with the merger with FLIC. Overall, the variances from the second quarter of 2026 to the second quarter of 2025 were primarily due to the merger with FLIC. "ConnectOne delivered another quarter of accelerated performance metrics, driven by sustained momentum across our franchise and a disciplined execution of our relationship-banking business model,” commented Frank Sorrentino, ConnectOne's Chairman and Chief Executive Officer. “Loans and core deposits grew sequentially at annualized rates of approximately 5% and 8%, respectively, while our net interest margin expanded for the 7 th consecutive quarter, climbing past 3.40%. The quarter also saw enhanced operating efficiency, and strong capital levels, alongside a substantial rise in tangible book value per share." Mr. Sorrentino added, “As one of the most efficient banks in the country, we remain committed to further enhancing our operating performance by driving productivity gains through technological innovation, including agentic workflows.” Mr. Sorrentino concluded, “Looking ahead, we're encouraged by the strength of our business and the opportunities we see for the balance of the year and beyond. Through the continued execution of our strategic priorities and results-oriented culture, we’re confident in ConnectOne's ability to deliver profitable growth and create long-term value for shareholders.” Dividend Declarations The Board of Directors declared cash dividends on the Company's common and outstanding preferred stock. A cash dividend on common stock of $0.195 per share will be paid on September 1, 2026, to common stockholders of record on August 14, 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 September 1, 2026, to holders of record on August 14, 2026. Operating Results Fully taxable equivalent net interest income for the second quarter of 2026 was $114.8 million, an increase of $4.9 million, or 4.4%, from the first quarter of 2026, largely due to a 3 basis-point widening of the net interest margin to 3.42% from 3.39% and a 2.2% increase in average interest-earning assets. The margin benefited from an increase in the yield on interest-earning assets, primarily due to loan repricing, partially offset by a 6 basis-point increase in the average cost of deposits, including noninterest-bearing deposits. Fully taxable equivalent net interest income for the second quarter of 2026 increased $35.0 million, or 43.9%, from the second quarter of 2025, due to a 36 basis-point widening of the net interest margin to 3.42% from 3.06%, and a 28.5% 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 16 basis-point increase in the yield on interest-earning assets and a 32 basis-point decrease in the average cost of deposits, including noninterest-bearing deposits. Noninterest income was $7.9 million in the second quarter of 2026, $6.8 million in the first quarter of 2026 and $5.2 million in the second quarter of 2025. The increase compared to the first quarter of 2026 was primarily due to a $1.2 million increase in net gains on sale of loans held-for-sale, primarily SBA loans. The increase compared to the second quarter of 2025 was primarily due to a $1.4 million increase in net gains on sale of loans held-for-sale, a $0.9 million increase in BOLI income and a $0.8 million increase in deposit, loan and other income, which was partially offset by a $0.4 million decrease in net gains 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. Noninterest expenses were $55.4 million for the second quarter of 2026, $57.9 million for the first quarter of 2026 and $73.6 million for the second quarter of 2025. Excluding merger expenses and restructuring charges, noninterest expenses totaled $55.3 million in the second quarter of 2026, $55.7 million in the first quarter of 2026 and $42.9 million in the second quarter of 2025. The decrease of $0.4 million during the second quarter of 2026 when compared to the first quarter of 2026 was primarily due to a $1.2 million decrease in salaries and employee benefits and a $0.3 million decrease in FDIC insurance expense, which were partially offset by a $0.5 million increase in other expenses, a $0.2 million increase in marketing and advertising expenses, a $0.2 million increase in occupancy and equipment expenses, and a $0.2 million increase in information technology and communication expenses. The $12.4 million increase for the second quarter of 2026 when compared to the second quarter of 2025 was primarily due to a $6.3 million increase in salaries and employee benefits, a $2.0 million increase in occupancy and equipment expenses, a $1.6 million increase in amortization of core deposit intangibles, a $1.3 million increase in other expenses, a $0.6 million increase in information technology and communication expenses and a $0.5 million increase in professional and consulting expense. The variances from the second quarter of 2026 to the second quarter of 2025 were primarily due to the merger with FLIC. Income tax expense (benefit) was $16.2 million for the second quarter of 2026, $14.7 million for the first quarter of 2026 and $(5.0) million for the second quarter of 2025. The effective tax rates were 28.0%, 28.0% and (19.7)% for the second quarter of 2026, first quarter of 2026 and second quarter of 2025, respectively. The negative tax rate in 2025 was due to the merger with FLIC. As of June 30, 2026, ConnectOne Bank executed a $50.0 million capital commitment to a renewable energy tax credit fund. This investment supports our community sustainability initiatives while helping to maintain our projected full-year 2026 effective tax rate of approximately 28%. Asset Quality The provision for credit losses was $8.3 million for the second quarter of 2026, $5.2 million for the first quarter of 2026 and $35.7 million for the second quarter of 2025. In each of the quarters presented, the provision for credit losses reflected net portfolio growth, charges related to individually evaluated loans, changing macroeconomic forecasts and conditions and qualitative factors, while the second quarter of 2025 included the merger-related initial provision. The current quarter's increased sequential provision was primarily driven by a $13.8 million charge-off on a previously disclosed group of New York City loans secured by multiple rent-stabilized multi-family buildings, partially offset by the release of $9.2 million in multifamily qualitative reserves previously related to the criticized portion of this segment. The decrease in the provision for credit losses when compared to the second quarter of 2025 was driven primarily by the initial $27.4 million provision originally booked in the second quarter of 2025 in connection with the FLIC merger. Nonperforming assets, which include nonaccrual loans and other real estate owned (the Bank had no other real estate owned during the periods reported), were $79.7 million as of June 30, 2026, $41.6 million as of March 31, 2026 and $39.2 million as of June 30, 2025. Nonperforming assets as a percentage of total assets increased to 0.55% as of June 30, 2026, versus 0.29% as of March 31, 2026 and 0.28% as of June 30, 2025. The ratio of nonaccrual loans to loans receivable also increased to 0.67%, as of June 30, 2026, versus 0.35% and 0.35%, at March 31, 2026 and June 30, 2025, respectively. The annualized net loan charge-offs ratio (excluding PCD loans) was 0.56% for the second quarter of 2026, 0.08% for the first quarter of 2026 and 0.22% for the second quarter of 2025. The increase in nonaccrual loans was primarily driven by a group of loans secured by multiple New York City rent-stabilized multi-family buildings, which added $29.9 million (net of charge-offs) to nonaccruals during the quarter, while $20.0 million of the previously announced $63.8 million of loans attributable to the group were brought current. Additionally, the increase in our net loan charge-off ratio (excluding PCD loans) was primarily attributable to the aforementioned $13.8 million charge-off related to this same group of loans. The allowance for credit losses ("ACL") represented 1.18%, 1.30% and 1.40% of loans receivable as of June 30, 2026, March 31, 2026 and June 30, 2025, respectively. The ACL decreased $12.9 million to $140.1 million as of June 30, 2026, compared to $153.1 million as of March 31, 2026, reflecting recent charge-off activity and the impact on specific and qualitative reserves previously established, improvements in economic factors, and historically low levels of delinquencies and criticized loans. The ACL as a percentage of nonaccrual loans was 175.9% as of June 30, 2026, 368.1% as of March 31, 2026 and 398.2% as of June 30, 2025. Criticized and classified loans as a percentage of loans receivable improved to 1.89% as of June 30, 2026, down from 2.26% as of March 31, 2026 and from 2.44% as of June 30, 2025. Loans past due 30-89 days were 0.03% of loans receivable as of June 30, 2026, 0.81% as of March 31, 2026 and 0.13% as of June 30, 2025.  Selected Balance Sheet Items The Company’s total assets were $14.4 billion as of June 30, 2026, compared to $14.0 billion as of December 31, 2025. Loans receivable were $11.9 billion as of June 30, 2026 and $11.5 billion as of December 31, 2025. Total deposits were $11.7 billion as of June 30, 2026 and $11.2 billion as of December 31, 2025. The Company’s total stockholders’ equity increased to $1.627 billion as of June 30, 2026 from $1.573 billion as of December 31, 2025. Retained earnings increased $57.6 million, partially offset by an increase in the accumulated other comprehensive loss of $3.0 million. As of June 30, 2026, the Company’s tangible common equity ratio and tangible book value per share were 8.78% and $24.66, respectively, compared to 8.62% and $23.52, respectively, as of December 31, 2025. Total goodwill and other intangible assets were $274.5 million as of June 30, 2026, and $280.2 million as of December 31, 2025. Share Repurchase Program The Company did not repurchase any shares of common stock during the second quarter of 2026. For the six months ended June 30, 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 intends to 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. Second Quarter 2026 Results Conference Call Management will also host a conference call and audio webcast at 10:00 a.m. ET on July 23, 2026, to review the Company's financial performance and operating results. The conference call dial-in number is 1 (585) 542-9983, meeting ID: 646 211 267. 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 . 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. Burns Senior Executive Vice President & CFO 201.816.4474; [email protected] Media Contact : Shannan Weeks   MikeWorldWide 732.299.7890;   [email protected] CONNECTONE BANCORP, INC. AND SUBSIDIARIES CONSOLIDATED CONDENSED STATEMENTS OF FINANCIAL CONDITION (in thousands)     June 30,     December 31,     June 30,       2026     2025     2025       (unaudited)             (unaudited)   ASSETS                         Cash and due from banks   $ 39,552     $ 92,406     $ 97,792   Interest-bearing deposits with banks     322,724       288,489       498,741   Cash and cash equivalents     362,276       380,895       596,533                             Investment securities     1,179,258       1,250,938       1,227,200   Equity securities     19,793       19,287       19,707                             Loans held-for-sale     —       391       1,027                             Loans receivable     11,869,034       11,453,280       11,164,477   Less: Allowance for credit losses - loans     140,149       154,305       156,190   Net loans receivable     11,728,885       11,298,975       11,008,287                             Investment in restricted stock, at cost     46,596       54,722       49,248   Bank premises and equipment, net     53,779       55,285       54,297   Accrued interest receivable     61,561       60,761       60,950   Bank owned life insurance     376,681       370,713       364,836   Right of use operating lease assets     30,340       29,603       31,282   Goodwill     220,235       220,235       215,611   Core deposit intangibles     54,233       59,923       66,315   Other assets     278,227       200,972       220,445   Total assets   $ 14,411,864     $ 14,002,700     $ 13,915,738                             LIABILITIES                         Deposits:                         Noninterest-bearing   $ 2,512,964     $ 2,420,397       2,424,529   Interest-bearing     9,227,399       8,820,218       8,853,958   Total deposits     11,740,363       11,240,615       11,278,487   Borrowings     715,416       903,489       783,859   Subordinated debentures, net     202,236       201,864       276,500   Operating lease liabilities     32,929       32,446       35,334   Other liabilities     94,395       50,946       45,127   Total liabilities     12,785,339       12,429,360       12,419,307                             COMMITMENTS AND CONTINGENCIES                                                   STOCKHOLDERS' EQUITY                         Preferred stock     110,927       110,927       110,927   Common stock     857,765       857,765       857,765   Additional paid-in capital     39,688       38,763       36,728   Retained earnings     731,500       673,897       614,532   Treasury stock     (78,507 )     (76,116 )     (76,116 ) Accumulated other comprehensive loss     (34,848 )     (31,896 )     (47,405 ) Total stockholders' equity     1,626,525       1,573,340       1,496,431   Total liabilities and stockholders' equity   $ 14,411,864     $ 14,002,700     $ 13,915,738   CONNECTONE BANCORP, INC. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF INCOME (dollars in thousands, except for per share data)     Three Months Ended     Six Months Ended       06/30/26     06/30/25     06/30/26     06/30/25   Interest income                                 Interest and fees on loans   $ 176,250     $ 132,316     $ 344,548     $ 247,667   Interest and dividends on investment securities:                                 Taxable     10,982       7,437       21,781       12,424   Tax-exempt     1,907       1,419       3,885       2,516   Dividends     947       788       1,882       1,677   Interest on federal funds sold and other short-term investments     2,821       4,070       5,208       6,535   Total interest income     192,907       146,030       377,304       270,819   Interest expense                                 Deposits     69,571       60,239       135,253       114,231   Borrowings     9,697       6,908       19,608       11,949   Total interest expense     79,268       67,147       154,861       126,180                                     Net interest income     113,639       78,883       222,443       144,639   Provision for credit losses     8,300       35,700       13,500       39,200   Net interest income after provision for credit losses     105,339       43,183       208,943       105,439                                     Noninterest income                                 Deposit, loan and other income     3,324       2,570       6,607       4,576   Income on bank owned life insurance     3,017       2,087       5,968       3,671   Net gains on sale of loans held-for-sale     1,590       181       2,017       513   Net gains (losses) on equity securities     (4 )     347       131       876   Total noninterest income     7,927       5,185       14,723       9,636                                     Noninterest expenses                                 Salaries and employee benefits     31,537       25,233       64,305       47,811   Occupancy and equipment     5,519       3,478       10,864       6,158   FDIC insurance     1,700       2,000       3,700       3,800   Professional and consulting     3,127       2,598       6,235       4,964   Marketing and advertising     1,161       840       2,087       1,435   Information technology and communications     5,394       4,792       10,637       9,396   Merger expenses and restructuring charges     108       30,745       2,233       32,065   Bank owned life insurance restructuring charge     —       —       —       327   Amortization of core deposit intangibles     2,845       1,251       5,690       1,530   Other expenses     4,025       2,712       7,534       5,468   Total noninterest expenses     55,416       73,649       113,285       112,954                                     Income (loss) before income tax expense     57,850       (25,281 )     110,381       2,121   Income tax expense (benefit)     16,182       (4,988 )     30,891       2,172   Net income (loss)     41,668       (20,293 )     79,490       (51 ) Preferred dividends     1,509       1,509       3,018       3,018   Net income (loss) available to common stockholders   $ 40,159     $ (21,802 )   $ 76,472     $ (3,069 )                                   Earnings (loss) per common share:                                 Basic   $ 0.80     $ (0.52 )   $ 1.52     $ (0.08 ) Diluted     0.80       (0.52 )     1.51       (0.08 )                                   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       Jun. 30,     Mar. 31,     Dec. 31,     Sept. 30,     Jun. 30,       2026     2026     2025     2025     2025   Selected Financial Data   (dollars in thousands)   Total assets   $ 14,411,864     $ 14,209,561     $ 14,002,700     $ 14,023,585     $ 13,915,738   Loans receivable:                                         Commercial     1,598,678       1,638,836       1,558,436       1,613,421       1,597,590   Commercial real estate     4,871,086       4,750,508       4,625,143       4,310,159       4,285,663   Multifamily     3,679,302       3,574,336       3,437,080       3,420,465       3,348,308   Commercial construction     528,103       571,073       623,902       728,615       681,222   Residential     1,192,033       1,202,539       1,210,980       1,233,305       1,254,646   Consumer     3,313       1,801       2,017       2,166       1,709   Gross loans     11,872,515       11,739,093       11,457,558       11,308,131       11,169,138   Net deferred loan fees     (3,481 )     (3,497 )     (4,278 )     (4,495 )     (4,661 ) Loans receivable     11,869,034       11,735,596       11,453,280       11,303,636       11,164,477   Loans held-for-sale     —       10,222       391       —       1,027   Total loans   $ 11,869,034     $ 11,745,818     $ 11,453,671     $ 11,303,636     $ 11,165,504                                             Investment and equity securities   $ 1,199,051     $ 1,215,806     $ 1,270,225     $ 1,272,335     $ 1,246,907   Goodwill and other intangible assets     274,468       277,313       280,158       278,730       281,926   Deposits:                                         Noninterest-bearing demand   $ 2,512,964     $ 2,393,938     $ 2,420,397     $ 2,513,102     $ 2,424,529   Time deposits     2,927,930       3,010,971       2,796,877       2,977,952       3,065,015   Other interest-bearing deposits     6,299,469       6,108,144       6,023,341       5,878,241       5,788,943   Total deposits   $ 11,740,363     $ 11,513,053     $ 11,240,615     $ 11,369,295     $ 11,278,487                                             Borrowings   $ 715,416     $ 827,477     $ 903,489     $ 833,443     $ 783,859   Subordinated debentures (net of debt issuance costs)     202,236       202,050       201,864       201,677       276,500   Total stockholders' equity     1,626,525       1,591,547       1,573,340       1,538,344       1,496,431                                             Quarterly Average Balances                                         Total assets   $ 14,254,280     $ 13,999,581     $ 13,963,138     $ 14,050,585     $ 11,108,430   Loans receivable:                                         Commercial   $ 1,652,412     $ 1,579,368     $ 1,597,123     $ 1,583,673     $ 1,486,245   Commercial real estate (including multifamily)     8,433,558       8,137,515       7,822,943       7,630,195       6,404,302   Commercial construction     524,023       613,661       646,414       704,170       643,115   Residential     1,198,244       1,204,082       1,221,171       1,241,375       587,118   Consumer     10,855       6,851       5,473       6,747       5,759   Gross loans     11,819,092       11,541,477       11,293,124       11,166,160       9,126,539   Net deferred loan fees     (3,331 )     (4,042 )     (4,708 )     (4,418 )     (5,097 ) Loans receivable     11,815,761       11,537,435       11,288,416       11,161,742       9,121,442   Loans held-for-sale     107       335       230       318       352   Total loans   $ 11,815,868     $ 11,537,770     $ 11,288,646     $ 11,162,060     $ 9,121,794                                             Investment and equity securities   $ 1,208,532     $ 1,256,147     $ 1,269,275     $ 1,274,000     $ 845,614   Goodwill and other intangible assets     276,313       279,158       279,165       280,814       235,848   Deposits:                                         Noninterest-bearing demand   $ 2,424,773     $ 2,384,883     $ 2,473,596     $ 2,486,993     $ 1,680,653   Time deposits     2,992,440       2,901,327       2,946,459       3,019,848       2,662,411   Other interest-bearing deposits     6,122,264       5,996,487       5,907,547       5,889,230       4,463,648   Total deposits   $ 11,539,477     $ 11,282,697     $ 11,327,602     $ 11,396,071     $ 8,806,712                                             Borrowings   $ 812,384     $ 833,551     $ 781,388     $ 783,994     $ 723,303   Subordinated debentures (net of debt issuance costs)     202,114       201,928       201,741       263,511       170,802   Total stockholders' equity     1,612,528       1,594,699       1,558,366       1,513,892       1,344,254       Three Months Ended       Jun. 30,     Mar. 31,     Dec. 31,     Sept. 30,     Jun. 30,       2026     2026     2025     2025     2025       (dollars in thousands, except for per share data)   Net interest income   $ 113,639     $ 108,804     $ 106,595     $ 102,017     $ 78,883   Provision for credit losses     8,300       5,200       2,300       5,500       35,700   Net interest income after provision for credit losses     105,339       103,604       104,295       96,517       43,183   Noninterest income                                         Deposit, loan and other income     3,324       3,283       3,289       3,836       2,570   Defined benefit pension plan curtailment gain     —       —       —       3,501       —   Employee retention tax credit     —       —       —       6,608       —   Income on bank owned life insurance     3,017       2,951       2,946       2,931       2,087   Net gains on sale of loans held-for-sale     1,590       427       631       859       181   Net gains (losses) on equity securities     (4 )     135       (846 )     1,674       347   Total noninterest income     7,927       6,796       6,020       19,409       5,185   Noninterest expenses                                         Salaries and employee benefits     31,537       32,768       31,211       32,401       25,233   Occupancy and equipment     5,519       5,345       5,265       5,122       3,478   FDIC insurance     1,700       2,000       2,400       2,400       2,000   Professional and consulting     3,127       3,108       2,908       2,929       2,598   Marketing and advertising     1,161       926       974       771       840   Information technology and communications     5,394       5,243       5,366       5,243       4,792   Restructuring and exit charges     —       —       —       994       —   Merger expenses and restructuring charges     108       2,125       498       1,898       30,745   Branch closing expenses     —       —       1,275       —       —   Bank owned life insurance restructuring charge     —       —       —       —       —   Amortization of core deposit intangible     2,845       2,845       3,196       3,196       1,251   Other expenses     4,025       3,509       3,853       3,719       2,712   Total noninterest expenses     55,416       57,869       56,946       58,673       73,649                                             Income (loss) before income tax expense     57,850       52,531       53,369       57,253       (25,281 ) Income tax expense (benefit)     16,182       14,709       13,851       16,277       (4,988 ) Net income (loss)     41,668       37,822       39,518       40,976       (20,293 ) Preferred dividends     1,509       1,509       1,509       1,509       1,509   Net income (loss) available to common stockholders   $ 40,159     $ 36,313     $ 38,009     $ 39,467     $ (21,802 )                                           Weighted average diluted common shares outstanding     50,404,698       50,382,297       50,414,115       50,462,030       42,173,758   Diluted EPS   $ 0.80     $ 0.72     $ 0.75     $ 0.78     $ (0.52 )                                           Reconciliation of GAAP Net Income to Operating Net Income:                                         Net income (loss)   $ 41,668     $ 37,822     $ 39,518     $ 40,976     $ (20,293 ) Restructuring and exit charges     —       —       —       994       —   Merger expenses and restructuring charges     108       2,125       498       1,898       30,745   Estimated state tax liability on intercompany dividends     —       —       —       —       3,000   Initial provision for credit losses related to merger     —       —       —       —       27,418   Branch closing expenses     —       —       1,275       —       —   Bank owned life insurance restructuring charge     —       —       —       —       —   Amortization of core deposit intangibles     2,845       2,845       3,196       3,196       1,251   Net (gains) losses on equity securities     4       (135 )     846       (1,674 )     (347 ) Defined benefit pension plan curtailment gain     —       —       —       (3,501 )     —   Employee retention tax credit     —       —       —       (6,608 )     —   Tax impact of adjustments     (917 )     (1,499 )     (1,802 )     1,737       (17,168 ) Operating net income   $ 43,708     $ 41,158     $ 43,531     $ 37,018     $ 24,606   Preferred dividends     1,509       1,509       1,509       1,509       1,509   Operating net income available to common stockholders   $ 42,199     $ 39,649     $ 42,022     $ 35,509     $ 23,097                                             Operating diluted EPS (non-GAAP) (1)   $ 0.84     $ 0.79     $ 0.83     $ 0.70     $ 0.55                                             Return on Assets Measures                                         Average assets   $ 14,254,280     $ 13,999,581     $ 13,963,138     $ 14,050,585     $ 11,108,430   Return on avg. assets     1.17 %     1.10 %     1.12 %     1.16 %     (0.73 )% Operating return on avg. assets (non-GAAP) (2)     1.23       1.19       1.24       1.05       0.89   Pre-provision net operating revenue ("PPNR") return on avg. assets (non-GAAP) (3)     1.94       1.81       1.75       1.61       1.52   (1) Operating net income available to common stockholders divided by weighted average diluted shares outstanding. (2) Operating net income divided by average assets. (3) Net income before income tax expense, provision for credit losses, merger expenses and restructuring charges, branch closing expenses, BOLI restructuring charges, restructuring and exit charges, employee retention tax credit, defined benefit pension plan curtailment gain, amortization of core deposit intangibles and net gains on equity securities divided by average assets.     Three Months Ended       Jun. 30,     Mar. 31,     Dec. 31,     Sept. 30,     Jun. 30,       2026     2026     2025     2025     2025   Return on Equity Measures   (dollars in thousands)   Average stockholders' equity   $ 1,612,528     $ 1,594,699     $ 1,558,366     $ 1,513,892     $ 1,344,254   Less: average preferred stock     (110,927 )     (110,927 )     (110,927 )     (110,927 )     (110,927 ) Average common equity   $ 1,501,601     $ 1,483,772     $ 1,447,439     $ 1,402,965     $ 1,233,327   Less: average intangible assets     (276,313 )     (279,158 )     (279,165 )     (280,814 )     (235,848 ) Average tangible common equity   $ 1,225,288     $ 1,204,614     $ 1,168,274     $ 1,122,151     $ 997,479   Return on avg. common equity (GAAP)     10.73 %     9.93 %     10.42 %     11.16 %     (7.09 )% Operating return on avg. common equity (non-GAAP) (4)     11.27       10.84       11.52       10.04       7.51   Return on avg. tangible common equity (non-GAAP) (5)     13.79       12.89       13.66       14.74       (8.42 ) Operating return on avg. tangible common equity (non-GAAP) (6)     13.81       13.35       14.27       12.55       9.29                                             Efficiency Measures                                         Total noninterest expenses   $ 55,416     $ 57,869     $ 56,946     $ 58,673     $ 73,649   Restructuring and exit charges     —       —       —       (994 )     —   Merger expenses and restructuring charges     (108 )     (2,125 )     (498 )     (1,898 )     (30,745 ) Branch closing expenses     —       —       (1,275 )     —       —   Bank owned life insurance restructuring charge     —       —       —       —       —   Amortization of core deposit intangibles     (2,845 )     (2,845 )     (3,196 )     (3,196 )     (1,251 ) Operating noninterest expense   $ 52,463     $ 52,899     $ 51,977     $ 52,585     $ 41,653                                             Net interest income (tax equivalent basis)   $ 114,841     $ 109,976     $ 107,761     $ 103,155     $ 79,810   Noninterest income     7,927       6,796       6,020       19,409       5,185   Defined benefit pension plan curtailment gain     —       —       —       (3,501 )     —   Employee retention tax credit     —       —       —       (6,608 )     —   Net (gains) losses on equity securities     4       (135 )     846       (1,674 )     (347 ) Operating revenue   $ 122,772     $ 116,637     $ 114,627     $ 110,781     $ 84,648                                             Operating efficiency ratio (non-GAAP) (7)     42.7 %     45.4 %     45.3 %     47.5 %     49.2 %                                           Net Interest Margin                                         Average interest-earning assets   $ 13,451,804     $ 13,160,794     $ 13,093,053     $ 13,172,443     $ 10,468,589   Net interest income (tax equivalent basis)   $ 114,841     $ 109,976     $ 107,761     $ 103,155     $ 79,810   Net interest margin (non-GAAP)     3.42 %     3.39 %     3.27 %     3.11 %     3.06 % (4) Operating net income available to common stockholders divided by average common equity. (5) Net income available to common stockholders, excluding amortization of intangible assets, divided by average tangible common equity. (6) Operating net income available to common stockholders, divided by average tangible common equity. (7) Operating noninterest expense divided by operating revenue.     As of       Jun. 30,     Mar. 31,     Dec. 31,     Sept. 30,     Jun. 30,       2026     2026     2025     2025     2025   Capital Ratios and Book Value per Share   (dollars in thousands, except for per share data)   Stockholders equity   $ 1,626,525     $ 1,591,547     $ 1,573,340     $ 1,538,344     $ 1,496,431   Less: preferred stock     (110,927 )     (110,927 )     (110,927 )     (110,927 )     (110,927 ) Common equity   $ 1,515,598     $ 1,480,620     $ 1,462,413     $ 1,427,417     $ 1,385,504   Less: intangible assets     (274,468 )     (277,313 )     (280,158 )     (278,730 )     (281,926 ) Tangible common equity   $ 1,241,130     $ 1,203,307     $ 1,182,255     $ 1,148,687     $ 1,103,578                                             Total assets   $ 14,411,864     $ 14,209,561     $ 14,002,700     $ 14,023,585     $ 13,915,738   Less: intangible assets     (274,468 )     (277,313 )     (280,158 )     (278,730 )     (281,926 ) Tangible assets   $ 14,137,396     $ 13,932,248     $ 13,722,542     $ 13,744,855     $ 13,633,812                                             Common shares outstanding     50,319,832       50,288,494       50,271,854       50,273,089       50,270,162                                             Common equity ratio (GAAP)     10.52 %     10.42 %     10.44 %     10.18 %     9.96 % Tangible common equity ratio (non-GAAP) (8)     8.78       8.64       8.62       8.36       8.09                                             Regulatory capital ratios (Bancorp):                                         Leverage ratio     9.85 %     9.79 %     9.61 %     9.35 %     11.58 % Common equity Tier 1 risk-based ratio     10.28       10.23       10.24       10.17       10.04   Risk-based Tier 1 capital ratio     11.22       11.19       11.22       11.17       11.06   Risk-based total capital ratio     13.71       13.81       13.88       13.88       14.35                                             Regulatory capital ratios (Bank):                                         Leverage ratio     10.81 %     10.81 %     10.59 %     10.35 %     12.81 % Common equity Tier 1 risk-based ratio     12.31       12.35       12.36       12.37       12.22   Risk-based Tier 1 capital ratio     12.31       12.35       12.36       12.37       12.22   Risk-based total capital ratio     13.20       13.33       13.33       13.38       13.24                                             Book value per share (GAAP)   $ 30.12     $ 29.44     $ 29.09     $ 28.39     $ 27.56   Tangible book value per share (non-GAAP) (9)     24.66       23.93       23.52       22.85       21.95                                             Net Loan Charge-offs (Recoveries) (10) :                                         Net loan charge-offs (recoveries):                                         Charge-offs   $ 17,022     $ 2,758     $ 5,613     $ 5,174     $ 5,039   Recoveries     (531 )     (467 )     (836 )     (38 )     (118 ) Net loan charge-offs   $ 16,491     $ 2,291     $ 4,777     $ 5,136     $ 4,921   Net loan charge-offs as a % of average loans receivable (annualized)     0.56 %     0.08 %     0.17 %     0.18 %     0.22 %                                           Asset Quality                                         Nonaccrual loans   $ 79,664     $ 41,579     $ 45,915     $ 39,671     $ 39,228   Other real estate owned     —       —       —       —       —   Nonperforming assets   $ 79,664     $ 41,579     $ 45,915     $ 39,671     $ 39,228                                             Allowance for credit losses - loans (excluding nonaccretable credit marks)   $ 106,120     $ 115,609     $ 112,282     $ 113,163     $ 112,854   Add: nonaccretable credit marks     34,029       37,447       42,023       43,336       43,336   Allowance for credit losses - loans ("ACL")   $ 140,149     $ 153,056     $ 154,305     $ 156,499     $ 156,190                                             Loans receivable   $ 11,869,034     $ 11,735,596     $ 11,453,280     $ 11,303,636     $ 11,164,477                                             Nonaccrual loans as a % of loans receivable     0.67 %     0.35 %     0.40 %     0.35 %     0.35 % Nonperforming assets as a % of total assets     0.55       0.29       0.33       0.28       0.28   ACL as a % of loans receivable     1.18       1.30       1.35       1.38       1.40   ACL as a % of nonaccrual loans     175.9       368.1       336.1       394.5       398.2   (8) Tangible common equity divided by tangible assets. (9) Tangible common equity divided by common shares outstanding at period-end. (10) Includes only non-PCD loans. CONNECTONE BANCORP, INC. NET INTEREST MARGIN ANALYSIS (dollars in thousands)     For the Three Months Ended       June 30, 2026     March 31, 2026     June 30, 2025       Average                     Average                     Average                   Interest-earning assets:   Balance     Interest     Rate (7)     Balance     Interest     Rate (7)     Balance     Interest     Rate (7)   Investment securities (1) (2)   $ 1,275,125     $ 13,397       4.21 %   $ 1,307,184     $ 13,302       4.13 %   $ 935,996     $ 9,234       3.96 % Loans receivable and loans held-for-sale (2) (3) (4)     11,815,868       176,944       6.01       11,537,770       168,945       5.94       9,121,794       132,865       5.84   Federal funds sold and interest-                                                                         bearing deposits with banks     309,872       2,821       3.65       264,232       2,387       3.66       367,309       4,070       4.44   Restricted investment in bank stock     50,939       947       7.46       51,608       935       7.35       43,490       788       7.27   Total interest-earning assets     13,451,804       194,109       5.79       13,160,794       185,569       5.72       10,468,589       146,957       5.63   Allowance for loan losses     (155,399 )                     (154,481 )                     (98,030 )                 Noninterest-earning assets     957,875                       993,268                       737,871                   Total assets   $ 14,254,280                     $ 13,999,581                     $ 11,108,430                                                                                             Interest-bearing liabilities:                                                                         Money market deposits     3,052,487       22,148       2.91       2,903,419       20,146       2.81       2,016,336       15,467       3.08   Savings deposits     978,961       6,339       2.60       1,014,568       6,304       2.52       777,951       6,172       3.18   Time deposits     2,992,440       27,776       3.72       2,901,327       26,713       3.73       2,662,411       26,636       4.01   Other interest-bearing deposits     2,090,816       13,308       2.55       2,078,500       12,519       2.44       1,669,361       11,964       2.87   Total interest-bearing deposits     9,114,704       69,571       3.06       8,897,814       65,682       2.99       7,126,059       60,239       3.39                                                                             Borrowings     812,384       5,402       2.67       833,551       5,513       2.68       723,303       3,530       1.96   Subordinated debentures     202,114       4,283       8.50       201,928       4,385       8.81       170,802       3,361       7.89   Finance lease     845       12       5.70       921       13       5.72       1,139       17       5.99   Total interest-bearing liabilities     10,130,047       79,268       3.14       9,934,214       75,593       3.09       8,021,303       67,147       3.36                                                                             Noninterest-bearing demand deposits     2,424,773                       2,384,883                       1,680,653                   Other liabilities     86,932                       85,785                       62,220                   Total noninterest-bearing liabilities     2,511,705                       2,470,668                       1,742,873                   Stockholders' equity     1,612,528                       1,594,699                       1,344,254                   Total liabilities and stockholders' equity   $ 14,254,280                     $ 13,999,581                     $ 11,108,430                                                                                             Net interest income (tax equivalent basis)             114,841                       109,976                       79,810           Net interest spread (5)                     2.65 %                     2.63 %                     2.27 %                                                                           Net interest margin (6)                     3.42 %                     3.39 %                     3.06 %                                                                           Tax equivalent adjustment             (1,202 )                     (1,172 )                     (927 )         Net interest income           $ 113,639                     $ 108,804                     $ 78,883           (1) Average balances are calculated on amortized cost. (2) Interest income is presented on a tax equivalent basis using 21% federal tax rate. (3) Includes loan fee income. (4) Loans include nonaccrual loans. (5) Represents difference between the average yield on interest-earning assets and the average cost of interest-bearing liabilities and is presented on a tax equivalent basis. (6) Represents net interest income on a tax equivalent basis divided by average total interest-earning assets. (7) Rates are annualized.

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