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Form 8-K

sec.gov

8-K — ConnectOne Bancorp, Inc.

Accession: 0001437749-26-033170

Filed: 2026-10-22

Period: 2026-10-22

CIK: 0000712771

SIC: 6022 (STATE COMMERCIAL BANKS)

Item: Results of Operations and Financial Condition

Item: Financial Statements and Exhibits

Documents

8-K — cnob20260728d_8k.htm (Primary)

EX-99.1 — EXHIBIT 99.1 (ex_994562.htm)

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8-K — FORM 8-K

8-K (Primary)

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2026-10-22

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2026-10-22

2026-10-22

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

_________________

FORM 8-K

_________________

CURRENT REPORT

Pursuant to Section 13 or 15(d)

of the Securities Exchange Act of 1934

October 22, 2026

_______________________________

CONNECTONE BANCORP, INC.

(Exact name of registrant as specified in its charter)

_______________________________

New Jersey

001-40751

52-1273725

(State or Other Jurisdiction of Incorporation)

(Commission File Number)

(I.R.S. Employer Identification No.)

301 Sylvan Avenue

Englewood Cliffs, New Jersey07632

(Address of Principal Executive Offices) (Zip Code)

(844) 266-2548

(Registrant's telephone number, including area code)

N/A

(Former name or former address, if changed since last report)

_______________________________

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

☐

Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

☐

Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

☐

Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

☐

Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Securities registered pursuant to Section 12(b) of the Act:

Title of each class

Trading Symbol(s)

Name of each exchange on which registered

Common stock

CNOB

NASDAQ

Depositary Shares (each representing a 1/40th interest in a share of 5.25% Series A Non-Cumulative, perpetual preferred stock)

CNOBP

NASDAQ

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).

Emerging growth company ☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Item 2.02. Results of Operations and Financial Condition.

On October 22, 2026, the Registrant issued a press release, a copy of which is attached hereto as Exhibit 99.1 and is incorporated herein by reference.

Item 9.01. Financial Statements and Exhibits.

99.1

Press Release dated October 22, 2026

104

Cover Page Interactive Data File (embedded within the Inline XBRL document)

SIGNATURE

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

ConnectOne Bancorp, Inc.

Date: October 22, 2026

By:

/s/ William S. Burns

William S. Burns

Senior Executive Vice President and Chief Financial Officer

EX-99.1 — EXHIBIT 99.1

EX-99.1

Filename: ex_994562.htm · Sequence: 2

ex_994562.htm

Exhibit 99.1

CONNECTONE BANCORP, INC. ANNOUNCES

THIRD QUARTER 2026 RESULTS

INCLUDING

BALANCE SHEET RESTRUCTURING AND REPOSITIONING

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., October 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.

Operating net income available to common stockholders (which excludes the $23.0 million pretax restructuring charge, among other non-operating items – see supplemental tables discussed below) was $47.9 million for the third quarter of 2026, $42.2 million for the second quarter of 2026 and $35.5 million for the third quarter of 2025.  Operating diluted earnings per share was $0.95 for the third quarter of 2026, $0.84 for the second quarter of 2026 and $0.70 for the third quarter of 2025.  Operating return on average assets was 1.35%, 1.23% and 1.05% for the three months ended September 30, 2026, June 30, 2026 and September 30, 2025, respectively.  Operating return on average tangible common equity was 15.2%, 13.8% and 12.6% for the three months ended September 30, 2026, June 30, 2026 and September 30, 2025, respectively. Pre-provision net operating revenue ("Operating PPNR") as a percentage of average assets was 2.01%, 1.94% and 1.61% for the three months ended September 30, 2026, June 30, 2026 and September 30, 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 and diluted earnings per share for the third quarter of 2026, compared to the second quarter of 2026, was primarily due to the $23.0 million pretax restructuring charge related to the above-mentioned balance sheet repositioning. This charge was partially offset by a $3.7 million increase in net interest income, a $3.3 million reduction in the provision for credit losses and a $5.2 million decrease in income tax expense.  Compared to the third quarter of 2025, the decrease in net income available to common stockholders and diluted earnings per share was primarily due to a $33.9 million decrease in noninterest income. The decrease in noninterest income was mainly attributable to the aforementioned $23.0 million pretax charge in the third quarter of 2026, as well as $10.1 million of non-recurring income recognized in the third quarter of 2025, consisting of a $6.6 million employee retention tax credit (“ERTC”) and a $3.5 million defined benefit pension plan curtailment gain. The decrease was partially offset by a $15.3 million increase in net interest income, a $5.3 million decrease in income tax expense, a $3.3 million decrease in noninterest expenses and a $0.5 million reduction in the provision for credit losses.

Balance Sheet Restructuring and Repositioning

The transaction.  During the third quarter of 2026, the Company completed a strategic review of its balance sheet. As a result, during the fourth quarter, the Company entered into an agreement to sell a pool of up to approximately $750 million in unpaid principal balance of non-relationship multifamily loans, subject to adjustment as provided for under the transaction agreements, to a single third-party purchaser. Loans secured by NYC rent-stabilized properties represent approximately 61% of the pool. The pool consists of loans originated by ConnectOne Bank (30%) and the First National Bank of Long Island (“FLIC”) (70%), which was acquired by the Company in June 2025. The transaction is expected to close in late October, and the final balance of loans sold will be determined at the closing.

Third quarter impact.  The loan pool was transferred to held-for-sale, at the lower of cost or fair value of $678.9 million as of September 30, 2026, resulting in a $23.0 million pretax loss on loans held-for-sale, recorded in noninterest income. This charge reflects the gross discount on the sale price, substantially offset by the interest-rate and credit purchase accounting marks previously recorded on the FLIC-originated loans, as part of the merger with FLIC’s parent company. The recognized loss on the pool is attributed to increases in market interest rates since the loans were originated. The charge is excluded from operating earnings.

Fourth quarter impact and timing. The transaction is scheduled to close in late October, 2026. Transaction costs related to the restructuring of approximately $7 to $8 million will be recognized upon closing and payment in the fourth quarter of 2026.

Use of proceeds and benefits. The majority of net proceeds from the sale are expected to be reinvested in government-guaranteed securities at yields similar to those of the loans sold, with the remaining balance used to pay down wholesale funding. The restructuring reduces the Company’s concentrations in commercial real estate (“CRE”) and NYC rent-stabilized properties while strengthening the Bank’s liquidity position. The Bank’s regulatory CRE concentration ratio declines to approximately 397% proforma for the loan sale from 439% at June 30, 2026, and exposure to NYC rent-stabilized assets is projected to decline to approximately 2% of total loans, from 6% as of June 30, 2026. The balance sheet repositioning also reduced the Bank’s loan-to-deposit ratio to 97.1% at September 30, 2026, and will expand its liquid assets.

“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%,” commented Frank Sorrentino, ConnectOne’s Chairman and Chief Executive Officer. “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.”

“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.”

Mr. Sorrentino concluded, “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.”

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 December 1, 2026, to common stockholders of record on November 13, 2026.  A dividend of $0.556620 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 December 1, 2026, to holders of record on November 13, 2026.

Operating Results

Fully taxable equivalent net interest income for the third quarter of 2026 was $118.5 million, an increase of $3.7 million, or 3.2%, from the second quarter of 2026, largely due to a 2 basis-point widening of the net interest margin to 3.44% from 3.42% and a 1.7% increase in average interest-earning assets.  The margin benefited from a 5 basis-point increase in the yield on interest-earning assets, primarily due to loan repricing, partially offset by a 3 basis-point increase in the average cost of deposits, including noninterest-bearing deposits.

Fully taxable equivalent net interest income for the third quarter of 2026 increased $15.3 million, or 14.8%, from the third quarter of 2025, due to a 33 basis-point widening of the net interest margin to 3.44% from 3.11%, and a 3.9% increase in average interest-earning assets.  The margin benefited from a 15 basis-point increase in the yield on interest-earning assets and a 17 basis-point decrease in the average cost of deposits, including noninterest-bearing deposits.

Noninterest income was $(14.5) million in the third quarter of 2026, $7.9 million in the second quarter of 2026 and $19.4 million in the third quarter of 2025.  Noninterest income for the third quarter of 2026 included the $23.0 million pretax restructuring charge. Excluding this item, noninterest income increased $0.6 million compared to the second quarter of 2026, primarily due to a $1.1 million increase in BOLI income, driven by death benefits recorded in the third quarter of 2026, partially offset by a $0.4 million decrease in net gains on sale of loans held-for-sale, primarily SBA loans.  During the third quarter of 2025, the Company recognized $10.1 million in non-recurring gains, consisting of a $6.6 million one-time benefit related to the ERTC and a $3.5 million defined benefit pension plan curtailment gain. Excluding these items, noninterest income decreased $0.8 million, compared to the third quarter of 2025, primarily due to a $1.9 million decrease in net gains on equity securities and a $0.5 million decrease  in deposit, loan and other income, partially offset by a $1.2 million increase in BOLI income, driven by the aforementioned death benefits and a $0.3 million increase in net gains on sale of loans held-for-sale, primarily SBA loans.

Noninterest expenses were $55.4 million for the third quarter of 2026, $55.4 million for the second quarter of 2026 and $58.7 million for the third quarter of 2025. Noninterest expenses were unchanged compared to the second quarter of 2026, as a $1.4 million increase in salaries and employee benefits was offset by a $0.5 million decrease in occupancy and equipment expenses, a $0.4 million decrease in other expenses, a $0.2 million decrease in marketing and advertising expenses, a $0.2 million decrease in FDIC insurance expense and a $0.1 million decrease in information technology and communication expenses. The $3.3 million decrease compared to the third quarter of 2025 was primarily due to a $2.9 million decrease in merger, restructuring and exit expenses, a $0.9 million decrease in FDIC insurance expense, a $0.4 million decrease in amortization of core deposit intangibles, a $0.1 million decrease in occupancy and equipment expenses and a $0.1 million decrease in other expenses, partially offset by a $0.5 million increase in salaries and employee benefits, a $0.4 million increase in professional and consulting expenses and a $0.2 million increase in marketing and advertising expenses.

Income tax expense was $11.0 million for the third quarter of 2026, $16.2 million for the second quarter of 2026 and $16.3 million for the third quarter of 2025.  The effective tax rates were 26.0%, 28.0% and 28.4% for the third quarter of 2026, second quarter of 2026 and third quarter of 2025, respectively.  The decrease in income tax expense and the effective tax rate for the third quarter of 2026 was primarily due to lower taxable income resulting from the loss on loans held-for-sale related to the balance sheet restructuring.  The projected effective tax rate for the fourth quarter of 2026 is 27.5%.

Asset Quality

The provision for credit losses was $5.0 million for the third quarter of 2026, $8.3 million for the second quarter of 2026 and $5.5 million for the third quarter of 2025.  The provision for credit losses for the third quarter of 2026, reflected core loan growth, charge-offs, and specific reserves, partially offset by the transfer of loans to loans held-for-sale at fair value. The provision in the second quarter of 2026 was elevated primarily due to charge-offs on certain NYC rent-stabilized multifamily loans during the second quarter of 2026.

Nonperforming assets, which include nonaccrual loans and other real estate owned (the Bank had no other real estate owned during the periods reported), were $64.3 million as of September 30, 2026, $79.7 million as of June 30, 2026 and $39.7 million as of September 30, 2025.  Nonperforming assets as a percentage of total assets was 0.44% as of September 30, 2026, compared to  0.55% as of June 30, 2026 and 0.28% as of September 30, 2025.  The ratio of nonaccrual loans to loans receivable was 0.56%, as of September 30, 2026, compared to 0.67% as of June 30, 2026 and 0.35% as of September 30, 2025. The sequential decrease in nonaccrual loans was primarily driven by work-out loan sales, charge-offs and principal payments. Excluding PCD loan charge-offs ($22.2 million in the third quarter of 2026, $4.5 million in the second quarter of 2026 and none in the third quarter of 2025), the annualized net loan charge-off ratio was 0.07% for the third quarter of 2026, 0.71% for the second quarter of 2026 and 0.18% for the third quarter of 2025. The elevated charge-off ratio, excluding PCD charge-offs, for the second quarter of 2026 included charge-offs related to a previously disclosed group of NYC rent-stabilized loans.

The allowance for credit losses ("ACL") represented 1.06%, 1.18% and 1.38% of loans receivable as of September 30, 2026, June 30, 2026 and September 30, 2025, respectively.  The ACL decreased $19.5 million to $120.6 million as of September 30, 2026, compared to $140.1 million as of June 30, 2026, primarily reflecting the charge-off of $22.2 million of allowance on PCD loans in connection with the pending loan sale, partially offset by provision expense in excess of non-PCD net charge-offs. The charge-offs associated with the pending loan sale related to PCD loans for which an allowance for credit losses had previously been established in connection with the FLIC acquisition and required no additional provision for credit losses in the current quarter. The ACL as a percentage of nonaccrual loans was 187.5% as of September 30, 2026, 175.9% as of June 30, 2026 and 394.5% as of September 30, 2025.  Criticized and classified loans as a percentage of loans receivable were 2.02% as of September 30, 2026, compared to 1.89% as of June 30, 2026 and 2.57% as of September 30, 2025.  The increase from June 30, 2026 was primarily due to the decrease in loans receivable resulting from the transfer of loans to held-for-sale; criticized and classified loan balances remained relatively stable during the quarter. Loans past due 30-89 days were 0.05% of loans receivable as of September 30, 2026, 0.03% as of June 30, 2026 and 0.08% as of September 30, 2025.

Selected Balance Sheet Items

The Company’s total assets were $14.8 billion as of September 30, 2026, compared to $14.0 billion as of December 31, 2025.  Loans receivable were $11.4 billion as of September 30, 2026 and $11.5 billion as of December 31, 2025.  Loans receivable as of September 30, 2026 excluded $0.8 billion of loans transferred to held-for-sale. Total deposits were $11.8 billion as of September 30, 2026 and $11.2 billion as of December 31, 2025.

The Company’s total stockholders’ equity increased to $1.599 billion as of September 30, 2026 from $1.573 billion as of December 31, 2025.  Retained earnings increased $77.7 million, partially offset by an increase in the accumulated other comprehensive loss of $51.0 million.  As of September 30, 2026, the Company’s tangible common equity ratio and tangible book value per share were 8.38% and $24.19, respectively, compared to 8.62% and $23.52, respectively, as of December 31, 2025.  Total goodwill and other intangible assets were $271.6 million as of September 30, 2026 and $280.2 million as of December 31, 2025. Proforma for the loan sale, the tangible common equity ratio was 8.83% as of September 30, 2026.

Share Repurchase Program

During the third quarter of 2026, the Company repurchased 50,000 shares of common stock at an average price of $32.37 per share.  For the nine months ended September 30, 2026, the Company repurchased 140,000 shares of common stock at an average price of $28.26 per share, leaving 501,118 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 program 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.

Third Quarter 2026 Results Conference Call

Management will host a conference call and audio webcast at 10:00 a.m. ET on Thursday, October 22, 2026, to review the Company’s financial performance and operating results. Chairman and Chief Executive Officer Frank Sorrentino III and Senior Executive Vice President and Chief Financial Officer William S. Burns will host the call.

The conference call dial-in number is 1 (585) 542-9983, meeting ID: 828 757 770. 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 at https://www.ConnectOneBank.com or at http://ir.connectonebank.com. An archive of the webcast will be available following the completion of the call at the same locations.

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 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; bill.burns@cnob.com

Media Contact:

Shannan Weeks

MikeWorldWide

732.299.7890; sweeks@mww.com

CONNECTONE BANCORP, INC. AND SUBSIDIARIES

CONSOLIDATED CONDENSED STATEMENTS OF FINANCIAL CONDITION

(in thousands)

September 30,

December 31,

September 30,

2026

2025

2025

(unaudited)

(unaudited)

ASSETS

Cash and due from banks

$ 50,643

$ 92,406

$ 96,990

Interest-bearing deposits with banks

262,705

288,489

445,744

Cash and cash equivalents

313,348

380,895

542,734

Investment securities

1,323,789

1,250,938

1,252,202

Equity securities

21,947

19,287

20,133

Loans held-for-sale

678,880

391

—

Loans receivable

11,432,533

11,453,280

11,303,636

Less: Allowance for credit losses - loans

120,620

154,305

156,499

Net loans receivable

11,311,913

11,298,975

11,147,137

Investment in restricted stock, at cost

62,661

54,722

51,516

Bank premises and equipment, net

48,351

55,285

55,888

Accrued interest receivable

66,657

60,761

60,630

Bank owned life insurance

378,361

370,713

367,767

Right of use operating lease assets

30,228

29,603

29,283

Goodwill

220,235

220,235

215,611

Core deposit intangibles

51,387

59,923

63,119

Other assets

270,948

200,972

217,565

Total assets

$ 14,778,705

$ 14,002,700

$ 14,023,585

LIABILITIES

Deposits:

Noninterest-bearing

$ 2,479,625

$ 2,420,397

$ 2,513,102

Interest-bearing

9,298,717

8,820,218

8,856,193

Total deposits

11,778,342

11,240,615

11,369,295

Borrowings

1,072,398

903,489

833,443

Subordinated debentures, net

202,423

201,864

201,677

Operating lease liabilities

32,807

32,446

33,185

Other liabilities

94,135

50,946

47,641

Total liabilities

13,180,105

12,429,360

12,485,241

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

41,329

38,763

37,934

Retained earnings

751,575

673,897

644,944

Treasury stock

(80,138 )

(76,116 )

(76,116 )

Accumulated other comprehensive loss

(82,858 )

(31,896 )

(37,110 )

Total stockholders' equity

1,598,600

1,573,340

1,538,344

Total liabilities and stockholders' equity

$ 14,778,705

$ 14,002,700

$ 14,023,585

CONNECTONE BANCORP, INC. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF INCOME

(dollars in thousands, except for per share data)

Three Months Ended

Nine Months Ended

09/30/26

09/30/25

09/30/26

09/30/25

Interest income

Interest and fees on loans

$ 182,428

$ 165,937

$ 526,976

$ 413,604

Interest and dividends on investment securities:

Taxable

12,580

12,033

34,361

24,457

Tax-exempt

1,858

2,014

5,743

4,530

Dividends

843

1,081

2,725

2,758

Interest on federal funds sold and other short-term investments

2,432

6,644

7,640

13,179

Total interest income

200,141

187,709

577,445

458,528

Interest expense

Deposits

72,102

75,209

207,355

189,440

Borrowings

10,741

10,483

30,349

22,432

Total interest expense

82,843

85,692

237,704

211,872

Net interest income

117,298

102,017

339,741

246,656

Provision for credit losses

5,000

5,500

18,500

44,700

Net interest income after provision for credit losses

112,298

96,517

321,241

201,956

Noninterest income

Deposit, loan and other income

3,347

3,836

9,954

8,412

Defined benefit pension plan curtailment gain

—

3,501

—

3,501

Employee retention tax credit

—

6,608

—

6,608

Income on bank owned life insurance

4,136

2,931

10,104

6,602

Gains on sale of loans held-for-sale

1,203

859

3,220

1,372

(Loss) on sale of loans held-for-sale-CRE restructuring

(23,025

)

—

(23,025

)

—

(Losses) gains on equity securities

(159 )

1,674

(28

)

2,550

Total noninterest income

(14,498

)

19,409

225

29,045

Noninterest expenses

Salaries and employee benefits

32,922

32,401

97,227

80,212

Occupancy and equipment

4,968

5,122

15,832

11,280

FDIC insurance

1,500

2,400

5,200

6,200

Professional and consulting

3,278

2,929

9,513

7,893

Marketing and advertising

951

771

3,038

2,206

Information technology and communications

5,277

5,243

15,914

14,639

Restructuring and exit charges

—

994

—

994

Merger expenses and restructuring charges

—

1,898

2,233

33,963

Bank owned life insurance restructuring charge

—

—

—

327

Amortization of core deposit intangibles

2,846

3,196

8,536

4,726

Other expenses

3,627

3,719

11,161

9,187

Total noninterest expenses

55,369

58,673

168,654

171,627

Income before income tax expense

42,431

57,253

152,812

59,374

Income tax expense

11,032

16,277

41,923

18,449

Net income

31,399

40,976

110,889

40,925

Preferred dividends

1,509

1,509

4,527

4,527

Net income available to common stockholders

$ 29,890

$ 39,467

$ 106,362

$ 36,398

Earnings per common share:

Basic

$ 0.59

$ 0.79

$ 2.12

$ 0.83

Diluted

0.59

0.78

2.10

0.83

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

Sept. 30,

Jun. 30,

Mar. 31,

Dec. 31,

Sept. 30,

2026

2026

2026

2025

2025

Selected Financial Data

(dollars in thousands)

Total assets

$ 14,778,705

$ 14,411,864

$ 14,209,561

$ 14,002,700

$ 14,023,585

Loans receivable:

Commercial

$ 1,650,434

$ 1,598,678

$ 1,638,836

$ 1,558,436

$ 1,613,421

Commercial real estate

4,930,142

4,871,086

4,750,508

4,625,143

4,310,159

Multifamily

3,057,962

3,679,302

3,574,336

3,437,080

3,420,465

Commercial construction

585,707

528,103

571,073

623,902

728,615

Residential

1,207,092

1,192,033

1,202,539

1,210,980

1,233,305

Consumer

4,306

3,313

1,801

2,017

2,166

Gross loans

11,435,643

11,872,515

11,739,093

11,457,558

11,308,131

Net deferred loan fees

(3,110 )

(3,481 )

(3,497 )

(4,278 )

(4,495 )

Loans receivable

11,432,533

11,869,034

11,735,596

11,453,280

11,303,636

Loans held-for-sale

678,880

—

10,222

391

—

Total loans

$ 12,111,413

$ 11,869,034

$ 11,745,818

$ 11,453,671

$ 11,303,636

Investment and equity securities

$ 1,345,736

$ 1,199,051

$ 1,215,806

$ 1,270,225

$ 1,272,335

Goodwill and other intangible assets

271,622

274,468

277,313

280,158

278,730

Deposits:

Noninterest-bearing demand

$ 2,479,625

$ 2,512,964

$ 2,393,938

$ 2,420,397

$ 2,513,102

Time deposits

3,119,593

2,927,930

3,010,971

2,796,877

2,977,952

Other interest-bearing deposits

6,179,124

6,299,469

6,108,144

6,023,341

5,878,241

Total deposits

$ 11,778,342

$ 11,740,363

$ 11,513,053

$ 11,240,615

$ 11,369,295

Borrowings

$ 1,072,398

$ 715,416

$ 827,477

$ 903,489

$ 833,443

Subordinated debentures (net of debt issuance costs)

202,423

202,236

202,050

201,864

201,677

Total stockholders' equity

1,598,600

1,626,525

1,591,547

1,573,340

1,538,344

Quarterly Average Balances

Total assets

$ 14,534,596

$ 14,254,280

$ 13,999,581

$ 13,963,138

$ 14,050,585

Loans receivable:

Commercial

$ 1,623,410

$ 1,652,412

$ 1,579,368

$ 1,597,123

$ 1,583,673

Commercial real estate (including multifamily)

8,600,502

8,433,558

8,137,515

7,822,943

7,630,195

Commercial construction

544,828

524,023

613,661

646,414

704,170

Residential

1,199,565

1,198,244

1,204,082

1,221,171

1,241,375

Consumer

10,242

10,855

6,851

5,473

6,747

Gross loans

11,978,547

11,819,092

11,541,477

11,293,124

11,166,160

Net deferred loan fees

(3,287 )

(3,331 )

(4,042 )

(4,708 )

(4,418 )

Loans receivable

11,975,260

11,815,761

11,537,435

11,288,416

11,161,742

Loans held-for-sale

7,623

107

335

230

318

Total loans

$ 11,982,883

$ 11,815,868

$ 11,537,770

$ 11,288,646

$ 11,162,060

Investment and equity securities

$ 1,307,476

$ 1,208,532

$ 1,256,147

$ 1,269,275

$ 1,274,000

Goodwill and other intangible assets

273,499

276,313

279,158

279,165

280,814

Deposits:

Noninterest-bearing demand

$ 2,510,843

$ 2,424,773

$ 2,384,883

$ 2,473,596

$ 2,486,993

Time deposits

2,920,335

2,992,440

2,901,327

2,946,459

3,019,848

Other interest-bearing deposits

6,252,427

6,122,264

5,996,487

5,907,547

5,889,230

Total deposits

$ 11,683,605

$ 11,539,477

$ 11,282,697

$ 11,327,602

$ 11,396,071

Borrowings

$ 874,544

$ 812,384

$ 833,551

$ 781,388

$ 783,994

Subordinated debentures (net of debt issuance costs)

202,300

202,114

201,928

201,741

263,511

Total stockholders' equity

1,636,171

1,612,528

1,594,699

1,558,366

1,513,892

Three Months Ended

Sept. 30,

Jun. 30,

Mar. 31,

Dec. 31,

Sept. 30,

2026

2026

2026

2025

2025

(dollars in thousands, except for per share data)

Net interest income

$ 117,298

$ 113,639

$ 108,804

$ 106,595

$ 102,017

Provision for credit losses

5,000

8,300

5,200

2,300

5,500

Net interest income after provision for credit losses

112,298

105,339

103,604

104,295

96,517

Noninterest income

Deposit, loan and other income

3,347

3,324

3,283

3,289

3,836

Defined benefit pension plan curtailment gain

—

—

—

—

3,501

Employee retention tax credit

—

—

—

—

6,608

Income on bank owned life insurance

4,136

3,017

2,951

2,946

2,931

Gains on sale of loans held-for-sale

1,203

1,590

427

631

859

(Loss) on sale of loans held-for-sale-CRE restructuring

(23,025

)

—

—

—

—

(Losses) gains on equity securities

(159 )

(4

)

135

(846

)

1,674

Total noninterest income

(14,498

)

7,927

6,796

6,020

19,409

Noninterest expenses

Salaries and employee benefits

32,922

31,537

32,768

31,211

32,401

Occupancy and equipment

4,968

5,519

5,345

5,265

5,122

FDIC insurance

1,500

1,700

2,000

2,400

2,400

Professional and consulting

3,278

3,127

3,108

2,908

2,929

Marketing and advertising

951

1,161

926

974

771

Information technology and communications

5,277

5,394

5,243

5,366

5,243

Restructuring and exit charges

—

—

—

—

994

Merger expenses and restructuring charges

—

108

2,125

498

1,898

Branch closing expenses

—

—

—

1,275

—

Amortization of core deposit intangible

2,846

2,845

2,845

3,196

3,196

Other expenses

3,627

4,025

3,509

3,853

3,719

Total noninterest expenses

55,369

55,416

57,869

56,946

58,673

Income before income tax expense

42,431

57,850

52,531

53,369

57,253

Income tax expense

11,032

16,182

14,709

13,851

16,277

Net income

31,399

41,668

37,822

39,518

40,976

Preferred dividends

1,509

1,509

1,509

1,509

1,509

Net income available to common stockholders

$ 29,890

$ 40,159

$ 36,313

$ 38,009

$ 39,467

Weighted average diluted common shares outstanding

50,455,230

50,404,698

50,382,297

50,414,115

50,462,030

Diluted EPS

$ 0.59

$ 0.80

$ 0.72

$ 0.75

$ 0.78

Reconciliation of GAAP Net Income to Operating Net Income:

Net income

$ 31,399

$ 41,668

$ 37,822

$ 39,518

$ 40,976

Restructuring and exit charges

—

—

—

—

994

Merger expenses and restructuring charges

—

108

2,125

498

1,898

Branch closing expenses

—

—

—

1,275

—

Amortization of core deposit intangibles

2,846

2,845

2,845

3,196

3,196

Loss on sale of loans held-for-sale-CRE restructuring

23,025

—

—

—

—

Losses (gains) on equity securities

159

4

(135

)

846

(1,674 )

Defined benefit pension plan curtailment gain

—

—

—

—

(3,501

)

Employee retention tax credit

—

—

—

—

(6,608

)

Tax impact of adjustments

(8,069 )

(917 )

(1,499 )

(1,802

)

1,737

Operating net income

$ 49,360

$ 43,708

$ 41,158

$ 43,531

$ 37,018

Preferred dividends

1,509

1,509

1,509

1,509

1,509

Operating net income available to common stockholders

$ 47,851

$ 42,199

$ 39,649

$ 42,022

$ 35,509

Operating diluted EPS (non-GAAP)

(1)

$ 0.95

$ 0.84

$ 0.79

$ 0.83

$ 0.70

Return on Assets Measures

Average assets

$ 14,534,596

$ 14,254,280

$ 13,999,581

$ 13,963,138

$ 14,050,585

Return on avg. assets

0.86 %

1.17 %

1.10 %

1.12 %

1.16 %

Operating return on avg. assets (non-GAAP)

(2)

1.35

1.23

1.19

1.24

1.05

Pre-provision net operating revenue ("PPNR") return on avg. assets (non-GAAP)

(3)

2.01

1.94

1.81

1.75

1.61

(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, CRE restructuring, 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

Sept. 30,

Jun. 30,

Mar. 31,

Dec. 31,

Sept. 30,

2026

2026

2026

2025

2025

Return on Equity Measures

(dollars in thousands)

Average stockholders' equity

$ 1,636,171

$ 1,612,528

$ 1,594,699

$ 1,558,366

$ 1,513,892

Less: average preferred stock

(110,927 )

(110,927 )

(110,927 )

(110,927 )

(110,927 )

Average common equity

$ 1,525,244

$ 1,501,601

$ 1,483,772

$ 1,447,439

$ 1,402,965

Less: average intangible assets

(273,499 )

(276,313 )

(279,158 )

(279,165 )

(280,814 )

Average tangible common equity

$ 1,251,745

$ 1,225,288

$ 1,204,614

$ 1,168,274

$ 1,122,151

Return on avg. common equity (GAAP)

7.77 %

10.73 %

9.93 %

10.42 %

11.16 %

Operating return on avg. common equity (non-GAAP) (4)

12.45

11.27

10.84

11.52

10.04

Return on avg. tangible common equity (non-GAAP)

(5)

10.10

13.79

12.89

13.66

14.74

Operating return on avg. tangible common equity (non-GAAP)

(6)

15.17

13.81

13.35

14.27

12.55

Efficiency Measures

Total noninterest expenses

$ 55,369

$ 55,416

$ 57,869

$ 56,946

$ 58,673

Restructuring and exit charges

—

—

—

—

(994

)

Merger expenses and restructuring charges

—

(108 )

(2,125 )

(498 )

(1,898 )

Branch closing expenses

—

—

—

(1,275

)

—

Amortization of core deposit intangibles

(2,846

)

(2,845 )

(2,845 )

(3,196 )

(3,196 )

Operating noninterest expense

$ 52,523

$ 52,463

$ 52,899

$ 51,977

$ 52,585

Net interest income (tax equivalent basis)

$ 118,541

$ 114,841

$ 109,976

$ 107,761

$ 103,155

Noninterest income

(14,498

)

7,927

6,796

6,020

19,409

Defined benefit pension plan curtailment gain

—

—

—

—

(3,501

)

Employee retention tax credit

—

—

—

—

(6,608

)

Loss on sale of loans held-for-sale-CRE restructuring

23,025

—

—

—

—

Losses (gains) on equity securities

159

4

(135

)

846

(1,674 )

Operating revenue

$ 127,227

$ 122,772

$ 116,637

$ 114,627

$ 110,781

Operating efficiency ratio (non-GAAP) (7)

41.3 %

42.7 %

45.4 %

45.3 %

47.5 %

Net Interest Margin

Average interest-earning assets

$ 13,685,961

$ 13,451,804

$ 13,160,794

$ 13,093,053

$ 13,172,443

Net interest income (tax equivalent basis)

$ 118,541

$ 114,841

$ 109,976

$ 107,761

$ 103,155

Net interest margin (non-GAAP)

3.44 %

3.42 %

3.39 %

3.27 %

3.11 %

(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

Sept. 30,

Jun. 30,

Mar. 31,

Dec. 31,

Sept. 30,

2026

2026

2026

2025

2025

Capital Ratios and Book Value per Share

(dollars in thousands, except for per share data)

Stockholders equity

$ 1,598,600

$ 1,626,525

$ 1,591,547

$ 1,573,340

$ 1,538,344

Less: preferred stock

(110,927 )

(110,927 )

(110,927 )

(110,927 )

(110,927 )

Common equity

$ 1,487,673

$ 1,515,598

$ 1,480,620

$ 1,462,413

$ 1,427,417

Less: intangible assets

(271,622 )

(274,468 )

(277,313 )

(280,158 )

(278,730 )

Tangible common equity

$ 1,216,051

$ 1,241,130

$ 1,203,307

$ 1,182,255

$ 1,148,687

Total assets

$ 14,778,705

$ 14,411,864

$ 14,209,561

$ 14,002,700

$ 14,023,585

Less: intangible assets

(271,622 )

(274,468 )

(277,313 )

(280,158 )

(278,730 )

Tangible assets

$ 14,507,083

$ 14,137,396

$ 13,932,248

$ 13,722,542

$ 13,744,855

Common shares outstanding

50,268,879

50,319,832

50,288,494

50,271,854

50,273,089

Common equity ratio (GAAP)

10.07 %

10.52 %

10.42 %

10.44 %

10.18 %

Tangible common equity ratio (non-GAAP)

(8)

8.38

8.78

8.64

8.62

8.36

Regulatory capital ratios (Bancorp):

Leverage ratio

9.80 %

9.85 %

9.79 %

9.61 %

9.35 %

Common equity Tier 1 risk-based ratio

10.10

10.28

10.23

10.24

10.17

Risk-based Tier 1 capital ratio

11.01

11.22

11.19

11.22

11.17

Risk-based total capital ratio

13.44

13.71

13.81

13.88

13.88

Regulatory capital ratios (Bank):

Leverage ratio

10.78 %

10.81 %

10.81 %

10.59 %

10.35 %

Common equity Tier 1 risk-based ratio

12.11

12.31

12.35

12.36

12.37

Risk-based Tier 1 capital ratio

12.11

12.31

12.35

12.36

12.37

Risk-based total capital ratio

12.99

13.20

13.33

13.33

13.38

Book value per share (GAAP)

$ 29.59

$ 30.12

$ 29.44

$ 29.09

$ 28.39

Tangible book value per share (non-GAAP)

(9)

24.19

24.66

23.93

23.52

22.85

Net Loan Charge-offs (Recoveries) (10):

Charge-offs

$ 3,179

$ 17,022

$ 2,758

$ 5,613

$ 5,174

Recoveries

(941 )

(531 )

(467 )

(836 )

(38 )

Net loan charge-offs

$ 2,238

$ 16,491

$ 2,291

$ 4,777

$ 5,136

Net loan charge-offs as a % of average loans receivable (annualized)

0.07 %

0.56 %

0.08 %

0.17 %

0.18 %

Asset Quality

Nonaccrual loans

$ 64,330

$ 79,664

$ 41,579

$ 45,915

$ 39,671

Other real estate owned

—

—

—

—

—

Nonperforming assets

$ 64,330

$ 79,664

$ 41,579

$ 45,915

$ 39,671

Allowance for credit losses - loans (excluding nonaccretable credit marks)

$ 108,818

$ 106,120

$ 115,609

$ 112,282

$ 113,163

Add: nonaccretable credit marks

11,802

34,029

37,447

42,023

43,336

Allowance for credit losses - loans ("ACL")

$ 120,620

$ 140,149

$ 153,056

$ 154,305

$ 156,499

Loans receivable

$ 11,432,533

$ 11,869,034

$ 11,735,596

$ 11,453,280

$ 11,303,636

Nonaccrual loans as a % of loans receivable

0.56 %

0.67 %

0.35 %

0.40 %

0.35 %

Nonperforming assets as a % of total assets

0.44

0.55

0.29

0.33

0.28

ACL as a % of loans receivable

1.06

1.18

1.30

1.35

1.38

ACL as a % of nonaccrual loans

187.5

175.9

368.1

336.1

394.5

(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

September 30, 2026

June 30, 2026

September 30, 2025

Average

​

​

Average

​

​

Average

​

​

Interest-earning assets:

Balance

Interest

Rate (7)

Balance

Interest

Rate

(7)

Balance

Interest

Rate

(7)

Investment securities

(1) (2)

$

1,387,589

$

14,931

4.27

%

$

1,275,125

$

13,397

4.21

%

$

1,355,775

$

14,581

4.27

%

Loans receivable and loans held-for-sale

(2) (3) (4)

11,982,883

183,178

6.06

11,815,868

176,944

6.01

11,162,060

166,541

5.92

Federal funds sold and interest-

​

​

​

​

​

​

​

​

​

bearing deposits with banks

262,118

2,432

3.68

309,872

2,821

3.65

605,344

6,644

4.35

Restricted investment in bank stock

53,371

843

6.27

50,939

947

7.46

49,264

1,081

8.71

Total interest-earning assets

13,685,961

201,384

5.84

13,451,804

194,109

5.79

13,172,443

188,847

5.69

Allowance for loan losses

(142,006

)

​

​

(155,399

)

​

​

(159,157

)

​

​

Noninterest-earning assets

990,641

​

​

957,875

​

​

1,037,299

​

​

Total assets

$

14,534,596

​

​

$

14,254,280

​

​

$

14,050,585

​

​

​

​

​

​

​

​

​

​

​

Interest-bearing liabilities:

​

​

​

​

​

​

​

​

​

Money market deposits

3,065,588

22,998

2.98

3,052,487

22,148

2.91

3,041,528

24,578

3.21

Savings deposits

942,742

6,234

2.62

978,961

6,339

2.60

949,775

7,198

3.01

Time deposits

2,920,335

27,603

3.75

2,992,440

27,776

3.72

3,019,848

30,072

3.95

Other interest-bearing deposits

2,244,097

15,267

2.70

2,090,816

13,308

2.55

1,897,927

13,361

2.79

Total interest-bearing deposits

9,172,762

72,102

3.12

9,114,704

69,571

3.06

8,909,078

75,209

3.35

​

​

​

​

​

​

​

​

​

Borrowings

874,544

6,393

2.90

812,384

5,402

2.67

783,994

4,550

2.30

Subordinated debentures

202,300

4,337

8.51

202,114

4,283

8.50

263,511

5,917

8.91

Finance lease

769

11

5.68

845

12

5.70

1,068

16

5.94

Total interest-bearing liabilities

10,250,375

82,843

3.21

10,130,047

79,268

3.14

9,957,651

85,692

3.41

​

​

​

​

​

​

​

​

​

Noninterest-bearing demand deposits

2,510,843

​

​

2,424,773

​

​

2,486,993

​

​

Other liabilities

137,207

​

​

86,932

​

​

92,049

​

​

Total noninterest-bearing liabilities

2,648,050

​

​

2,511,705

​

​

2,579,042

​

​

Stockholders' equity

1,636,171

​

​

1,612,528

​

​

1,513,892

​

​

Total liabilities and stockholders' equity

$

14,534,596

​

​

$

14,254,280

​

​

$

14,050,585

​

​

​

​

​

​

​

​

​

​

​

Net interest income (tax equivalent basis)

​

118,541

​

​

114,841

​

​

103,155

​

Net interest spread

(5)

​

​

2.63

%

​

​

2.65

%

​

​

2.28

%

​

​

​

​

​

​

​

​

​

Net interest margin (6)

​

​

3.44

%

​

​

3.42

%

​

​

3.11

%

​

​

​

​

​

​

​

​

​

Tax equivalent adjustment

​

(1,243

)

​

​

(1,202

)

​

​

(1,138

)

​

Net interest income

​

$

117,298

​

​

$

113,639

​

​

$

102,017

​

(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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v3.26.3

Document And Entity Information

Oct. 22, 2026

Document Information [Line Items]

Entity, Registrant Name

CONNECTONE BANCORP, INC.

Document, Type

8-K

Document, Period End Date

Oct. 22, 2026

Entity, Incorporation, State or Country Code

NJ

Entity, File Number

001-40751

Entity, Tax Identification Number

52-1273725

Entity, Address, Address Line One

301 Sylvan Avenue

Entity, Address, City or Town

Englewood Cliffs

Entity, Address, State or Province

NJ

Entity, Address, Postal Zip Code

07632

City Area Code

844

Local Phone Number

266-2548

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Security Exchange Name

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