ConnectOne Bancorp, Inc. Reports Second Quarter 2026 Results

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 7th 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 SUBSIDIARIESCONSOLIDATED 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 SUBSIDIARIESCONSOLIDATED 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.