CNOB

ConnectOne Bancorp (CNOB) came out with quarterly earnings of $0.84 per share, beating the Zacks Consensus Estimate of $0.83 per share. This compares to earnings of $0.55 per share a year ago. These figures are adjusted for non-recurring items. This quarterly report represents an earnings surprise of +1.21%. A quarter ago, it was expected that this holding company for ConnectOne Bank would post earnings of $0.73 per share when it actually produced earnings of $0.79, delivering a surprise of +8.22%. Over the last four quarters, the company has surpassed consensus EPS estimates four times. ConnectOne, which belongs to the Zacks Banks - Northeast industry, posted revenues of $121.57 million for the quarter ended June 2026, missing the Zacks Consensus Estimate by 0.47%. This compares to year-ago revenues of $84.07 million. The company has not been able to beat consensus revenue estimates over the last four quarters. The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call. ConnectOne shares have added about 25.9% since the beginning of the year versus the S&P 500's gain of 9.6%. While ConnectOne has outperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock? There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately. Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions. Ahead of this earnings release, the estimate revisions trend for ConnectOne was unfavorable. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #4 (Sell) for the stock. So, the shares are expected to underperform the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. It will be interesting to see how estimates for the coming quarters and the current fiscal year change in the days ahead. The current consensus EPS estimate is $0.84 on $124.79 million in revenues for the coming quarter and $3.28 on $489.68 million in revenues for the current fiscal year. Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Banks - Northeast is currently in the top 37% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1. Citizens Financial Services (CZFS), another stock in the same industry, has yet to report results for the quarter ended June 2026. This bank is expected to post quarterly earnings of $1.98 per share in its upcoming report, which represents a year-over-year change of +12.5%. The consensus EPS estimate for the quarter has remained unchanged over the last 30 days. Citizens Financial Services' revenues are expected to be $29.3 million, up 7.3% from the year-ago quarter. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report ConnectOne Bancorp, Inc. (CNOB) : Free Stock Analysis Report Citizens Financial Services Inc. (CZFS) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

OPERATING PERFORMANCE ACCELERATESSEQUENTIAL LOAN GROWTH OF 5% AND CORE DEPOSIT GROWTH OF 8%, ANNUALIZEDNET INTEREST MARGIN WIDENS TO 3.42%TANGIBLE BOOK VALUE PER SHARE INCREASESCOMMON & 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. BurnsSenior Executive Vice President & CFO201.816.4474; [email protected] Media Contact:Shannan Weeks MikeWorldWide732.299.7890; [email protected] 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 (CNOB) reported $121.57 million in revenue for the quarter ended June 2026, representing a year-over-year increase of 44.6%. EPS of $0.84 for the same period compares to $0.55 a year ago. The reported revenue represents a surprise of -0.47% over the Zacks Consensus Estimate of $122.14 million. With the consensus EPS estimate being $0.83, the EPS surprise was +1.21%. While investors scrutinize revenue and earnings changes year-over-year and how they compare with Wall Street expectations to determine their next move, some key metrics always offer a more accurate picture of a company's financial health. Since these metrics play a crucial role in driving the top- and bottom-line numbers, comparing them with the year-ago numbers and what analysts estimated about them helps investors better project a stock's price performance. Here is how ConnectOne performed in the just reported quarter in terms of the metrics most widely monitored and projected by Wall Street analysts: Efficiency Ratio (non-GAAP): 42.7% versus the two-analyst average estimate of 46.4%. Net Interest Margin (GAAP): 3.4% compared to the 3.4% average estimate based on two analysts. Average Balance - Total interest-earning assets: $13.45 billion versus the two-analyst average estimate of $13.4 billion. Deposit, loan and other income: $3.32 million compared to the $3.16 million average estimate based on two analysts. Net Interest Income (tax equivalent basis): $114.84 million versus the two-analyst average estimate of $114.18 million. Net gains on sale of loans held-for-sale: $1.59 million versus $1.75 million estimated by two analysts on average. Income on bank owned life insurance: $3.02 million versus the two-analyst average estimate of $2.99 million. Total Noninterest Income: $7.93 million compared to the $7.89 million average estimate based on two analysts. View all Key Company Metrics for ConnectOne here>>> Shares of ConnectOne have returned -1.1% over the past month versus the Zacks S&P 500 composite's +0.4% change. The stock currently has a Zacks Rank #4 (Sell), indicating that it could underperform the broader market in the near term. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report ConnectOne Bancorp, Inc. (CNOB) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

Interested in ConnectOne Bancorp, Inc.? Here are five stocks we like better. ConnectOne Bancorp posted stronger Q2 2026 results, with net income rising to $40.2 million, or $0.80 per share, and operating pre-provision net revenue improving to 1.94%. Management said continued margin expansion, deposit growth, and the Long Island acquisition helped drive the improvement. Net interest margin widened for a seventh straight quarter to 3.42%, supported by loan repricing, while loans and deposits both grew solidly. The company still expects mid-single-digit loan growth for 2026 and sees further margin expansion ahead despite some pressure from higher deposit costs. Credit quality was pressured by one rent-stabilized multifamily loan relationship, which led to a $13.8 million charge-off and pushed non-performing assets higher. Management said broader portfolio trends remain stable and that the issue is largely isolated to that single exposure. The 5 top-rated dividend stocks by analysts ConnectOne Bancorp (NASDAQ:CNOB) reported stronger second-quarter 2026 earnings, with management citing continued margin expansion, balance sheet growth and benefits from its Long Island acquisition completed a little over a year ago. Chairman and Chief Executive Officer Frank Sorrentino said the company’s operating performance “continued to accelerate” during the quarter, pointing to “strong revenue and earnings, healthy deposit and loan growth, continued margin expansion, and accelerating financial returns.” He said the bank remains focused on client relationships, core deposit growth and disciplined loan growth. → 3 Photonics Companies Making Quantum Tech Possible Senior Executive Vice President and Chief Financial Officer Bill Burns said net income available to common shareholders was $40.2 million, or $0.80 per share, up from $36.3 million, or $0.72 per share, in the first quarter. Operating pre-provision net revenue improved to 1.94%, compared with 1.81% in the prior quarter and 1.52% a year earlier. ConnectOne’s net interest margin widened for the seventh consecutive quarter, reaching 3.42%. Burns said the three-basis-point sequential increase followed wider gains in the two previous quarters and was driven largely by adjustable-rate loan repricing. → Could Truth API Become Trump Media’s First Meaningful Revenue Driver? Year to date, about $700 million of loan balances came up for repricing, or roughly $100 million per month. Burns said approximately 20% of those loans paid off, while the remaining 80% were retained at a weighted average rate increase of 255 basis points. Burns maintained prior guidance for a year-end spot margin of 3.50%, citing some pressure from rising deposit costs. However, he said management still expects wider margins through the rest of 2026 and into 2027, with loan repricing expected to outweigh higher funding costs. → AeroVironment’s Stock Is Down, But Drone Demand Is Taking Off In response to an analyst question, Burns said deposit costs have risen slightly, with certificate of deposit rates around 4%. He said growth in non-interest-bearing demand deposits could help offset pressure from higher-cost funding. Loans grew at an annualized rate of about 5% on a period-end basis, while average loan balances increased at a 10% annualized pace. Burns said the growth contributed to stronger net interest income. Client deposits, defined as total deposits less brokered deposits, grew 8% annualized on a point-to-point basis. Non-interest-bearing demand deposits grew at a 20% annualized rate. Burns said deposit growth came from commercial and retail accounts as well as municipalities, including in Southeast Florida. During the question-and-answer session, management said it still expects mid-single-digit loan growth for 2026. Sorrentino said loan pipeline activity in the “top of the funnel” supports expectations that momentum will continue in the second half of the year. Sorrentino also discussed the company’s Florida operations, saying the market remains a growth opportunity for ConnectOne. He said the bank’s Florida presence is approaching $700 million in footings and that about half of the growth is coming from clients with ties to New York and New Jersey who are expanding into Florida. Non-interest income increased to $7.9 million, up more than $1 million sequentially, driven by higher Small Business Administration loan sale gains. Burns said the company expects higher levels of non-interest income in the second half of the year. Sorrentino said SBA and BoeFly are contributing to the bank’s non-interest income trajectory, while the company’s residential build-out is gaining momentum. Operating expenses declined slightly to $55.3 million from $55.7 million in the first quarter. The efficiency ratio improved to 42.7%, compared with 45.4% in the prior quarter and 49.2% a year earlier. Sorrentino said ConnectOne is using technology to improve efficiency, including a partnership with nCino that deploys digital agents and business intelligence into its loan platform. He said the effort has reduced time spent on some manual processes by more than 50%, allowing employees to spend more time on clients and revenue growth. Credit quality was a major focus of the call, particularly a $63.8 million relationship secured by New York City rent-stabilized multifamily properties that management flagged in the prior quarter. Burns said the borrower’s issues centered on administrative matters, including delays in the New York State tax abatement process. During the second quarter, ConnectOne received payments that brought $20 million of the exposure current. The remaining $44 million was moved to non-accrual status, followed by a $13.8 million charge-off based on conservative valuations. Burns clarified during the Q&A that, after the charge-off, the remaining outstanding exposure was about $30 million. He said management hopes to resolve the credit over the next year while continuing to work with the client. The charge-off was partially offset by a $9.2 million release of reserves previously allocated to the rent-stabilized subsegment, including the specific relationship. The net effect added $4.6 million to provision expense, bringing total provision for loan losses to $8.3 million, compared with $5.2 million in the first quarter. Non-performing assets increased to 0.55% of total assets from 0.29% in the prior quarter, and annualized charge-offs were 56 basis points, above what Burns described as a typical level of about 20 basis points. He said the increase was “substantially attributable” to the one relationship. Management emphasized that broader credit trends remain stable. Total criticized and classified loans fell to 1.89% of total loans from 2.26%, while 30- to 89-day delinquencies declined to three basis points of total loans. Burns said there was no other area of the portfolio that was a particular concern. The rent-stabilized portfolio represents about 5% of total loans and has declined approximately 10% year over year. Burns said ConnectOne is actively exploring a potential bulk sale to further reduce exposure, depending on market conditions. Tangible book value per share increased 3.1% sequentially to $24.66 and was up 12.4% year over year. The tangible common equity ratio rose to 8.78%, up 70 basis points from last June, when the First of Long Island merger closed. ConnectOne repurchased 90,000 shares year to date at an average price of $26.21, though it did not repurchase shares during the second quarter. Burns said 550,000 shares remain under the current authorization and that the company will continue to repurchase shares opportunistically. The board declared a common dividend of $0.195 per share, unchanged from the prior quarter. Burns said the dividend payout ratio remains in the mid-20% range, giving the company flexibility around dividends and buybacks. Sorrentino said the company remains focused on organic growth rather than near-term bank acquisitions, though he said ConnectOne would continue to be opportunistic if future opportunities arise. ConnectOne Bancorp is a New Jersey‐based bank holding company whose primary subsidiary, ConnectOne Bank, offers a suite of commercial banking services to small and medium‐sized businesses, professionals and individuals. Established in 2005 and headquartered in Englewood Cliffs, New Jersey, the company seeks to deliver customized lending and deposit solutions through a network of branches across northern New Jersey and the New York metropolitan area. The company's lending portfolio centers on commercial real estate financing, construction lending, owner‐occupied real estate loans and working capital lines of credit. This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to [email protected]. The article "ConnectOne Bancorp Q2 Earnings Call Highlights" was originally published by MarketBeat. View MarketBeat's top stocks for July 2026.

This article first appeared on GuruFocus. Release Date: July 23, 2026 For the complete transcript of the earnings call, please refer to the full earnings call transcript. ConnectOne Bancorp Inc (NASDAQ:CNOB) reported strong revenue and earnings growth, with net income available to common shareholders increasing by over 10% sequentially. The company achieved a net interest margin expansion for the seventh consecutive quarter, reaching 3.42%, driven by the repricing of adjustable-rate loans. Loan growth was robust, with sequential annualized growth of approximately 5%, contributing to strong net interest income. Non-interest income increased due to higher SBA loan sale gains, with expectations for continued growth in the second half of the year. The efficiency ratio improved significantly to 42.7% from 45.4% last quarter, reflecting disciplined expense management and merger synergies. ConnectOne Bancorp Inc (NASDAQ:CNOB) faced challenges with a significant rent-stabilized loan relationship, resulting in a $13.8 million charge-off. Non-performing assets rose to 0.55% of total assets from 0.29% last quarter, primarily due to the rent-stabilized loan issue. Deposit costs have begun to rise, potentially offsetting improvements from loan repricing. The company is exploring a potential bulk sale of rent-stabilized loans, indicating ongoing concerns in this segment. The tangible common equity ratio, while improved, still requires careful management to support future growth and shareholder returns. Warning! GuruFocus has detected 6 Warning Signs with CNOB. Is CNOB fairly valued? Test your thesis with our free DCF calculator. Q: Can you clarify the impact of multi-family loans on the income statement and the provision related to these loans? A: Yes, we added an additional $4 million provision related to these loans. The total exposure was reduced to $30 million after a $13.8 million charge-off and a $20 million resolution through payment. We continue to work with the city to resolve the remaining exposure. Bill Burns, CFO Q: What is the outlook for loan growth and payoffs for the rest of the year? A: We expect loan growth to continue in the mid-single digits, driven by strong origination and slightly lower payoffs. The momentum in our loan pipeline suggests continued growth through the second half of 2026. Frank Sorrentino, CEO Q: Is there still a desire to reduce the CRE concentration ratio below 400%? A: Our focus remains on diversifying the portfolio and reducing the CRE concentration over time. While we continue to grow our CRE portfolio, we aim to see the ratio trend lower, potentially reaching below 400% in the future. Frank Sorrentino, CEO Q: How are you modeling deposit cost sensitivity in the current rate environment? A: Deposit costs have risen slightly, with CD rates at 4%. We expect the repricing of our loan portfolio to outweigh any increase in deposit costs. If rates change, it will impact deposit costs, but we remain bullish on our margin direction. Bill Burns, CFO Q: What is the level of opportunity in the Florida market for growth in loans, deposits, and fee income? A: The Florida market presents significant growth opportunities, with our presence approaching $700 million. We see favorable economic dynamics and continue to attract high-quality clients and seasoned bankers, contributing positively to our bottom line. Frank Sorrentino, CEO For the complete transcript of the earnings call, please refer to the full earnings call transcript.

NB Bancorp, Inc. (NBBK) came out with quarterly earnings of $0.55 per share, beating the Zacks Consensus Estimate of $0.51 per share. This compares to earnings of $0.4 per share a year ago. These figures are adjusted for non-recurring items. This quarterly report represents an earnings surprise of +7.84%. A quarter ago, it was expected that this company would post earnings of $0.54 per share when it actually produced earnings of $0.38, delivering a surprise of -29.63%. Over the last four quarters, the company has surpassed consensus EPS estimates three times. NB Bancorp, Inc., which belongs to the Zacks Banks - Northeast industry, posted revenues of $74.7 million for the quarter ended June 2026, surpassing the Zacks Consensus Estimate by 3.43%. This compares to year-ago revenues of $51.19 million. The company has topped consensus revenue estimates just once over the last four quarters. The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call. NB Bancorp, Inc. shares have added about 6.2% since the beginning of the year versus the S&P 500's gain of 9.7%. While NB Bancorp, Inc. has underperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock? There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately. Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions. Ahead of this earnings release, the estimate revisions trend for NB Bancorp, Inc. was mixed. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #3 (Hold) for the stock. So, the shares are expected to perform in line with the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. It will be interesting to see how estimates for the coming quarters and the current fiscal year change in the days ahead. The current consensus EPS estimate is $0.56 on $74.55 million in revenues for the coming quarter and $2.02 on $291.99 million in revenues for the current fiscal year. Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Banks - Northeast is currently in the top 36% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1. ConnectOne Bancorp (CNOB), another stock in the same industry, has yet to report results for the quarter ended June 2026. The results are expected to be released on July 23. This holding company for ConnectOne Bank is expected to post quarterly earnings of $0.83 per share in its upcoming report, which represents a year-over-year change of +50.9%. The consensus EPS estimate for the quarter has been revised 1.2% lower over the last 30 days to the current level. ConnectOne Bancorp's revenues are expected to be $122.14 million, up 45.3% from the year-ago quarter. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report NB Bancorp, Inc. (NBBK) : Free Stock Analysis Report ConnectOne Bancorp, Inc. (CNOB) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

Independent Bank Corp. (INDB) came out with quarterly earnings of $1.7 per share, missing the Zacks Consensus Estimate of $1.77 per share. This compares to earnings of $1.25 per share a year ago. These figures are adjusted for non-recurring items. This quarterly report represents an earnings surprise of -3.96%. A quarter ago, it was expected that this holding company for Rockland Trust would post earnings of $1.7 per share when it actually produced earnings of $1.68, delivering a surprise of -1.18%. Over the last four quarters, the company has surpassed consensus EPS estimates two times. Independent Bank Corp., which belongs to the Zacks Banks - Northeast industry, posted revenues of $253.32 million for the quarter ended June 2026, missing the Zacks Consensus Estimate by 1.71%. This compares to year-ago revenues of $181.8 million. The company has topped consensus revenue estimates two times over the last four quarters. The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call. Independent Bank Corp. shares have added about 16.6% since the beginning of the year versus the S&P 500's gain of 10.6%. While Independent Bank Corp. has outperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock? There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately. Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions. Ahead of this earnings release, the estimate revisions trend for Independent Bank Corp. was mixed. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #3 (Hold) for the stock. So, the shares are expected to perform in line with the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. It will be interesting to see how estimates for the coming quarters and the current fiscal year change in the days ahead. The current consensus EPS estimate is $1.88 on $262.24 million in revenues for the coming quarter and $7.28 on $1.04 billion in revenues for the current fiscal year. Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Banks - Northeast is currently in the top 43% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1. One other stock from the same industry, ConnectOne Bancorp (CNOB), is yet to report results for the quarter ended June 2026. The results are expected to be released on July 23. This holding company for ConnectOne Bank is expected to post quarterly earnings of $0.83 per share in its upcoming report, which represents a year-over-year change of +50.9%. The consensus EPS estimate for the quarter has been revised 1.2% lower over the last 30 days to the current level. ConnectOne Bancorp's revenues are expected to be $122.14 million, up 45.3% from the year-ago quarter. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Independent Bank Corp. (INDB) : Free Stock Analysis Report ConnectOne Bancorp, Inc. (CNOB) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

ConnectOne reported operating EPS of $0.79 and saw net interest margin expand 12 bps sequentially to 3.39%, maintaining a year-end spot margin target of 3.50%, while loan originations contributed roughly $300 million of growth (annualized ~10%). Credit metrics remain solid with non-performing assets at 0.29% and criticized/classified loans at 2.26%, although 30–59 day delinquencies rose to 0.81% due to one rent‑stabilized multifamily relationship currently being worked out. The board approved an 8.3% dividend increase, the company repurchased 90,000 shares this quarter and plans about 100,000 repurchases per quarter, with tangible book value up to $23.93 and reserves providing more than $80 million of cushion on rent‑stabilized exposure. Interested in ConnectOne Bancorp, Inc.? Here are five stocks we like better. The 5 top-rated dividend stocks by analysts ConnectOne Bancorp (NASDAQ:CNOB) executives highlighted what they called a “strong momentum” start to 2026, pointing to loan growth, net interest margin expansion, improving return metrics and continued progress integrating its acquisition of The First of Long Island. “We kick off 2026 with strong momentum, firing on all cylinders, as demonstrated by our results,” Chairman and CEO Frank Sorrentino said. He added that ConnectOne has “scaled the balance sheet from under $10 billion to nearly $15 billion assets,” broadened its geographic footprint across the New York City metro region and extended into South Florida. → Credo Stock Flashes Strong Bullish Signal—Upswing Just Starting Senior Executive Vice President and CFO Bill Burns said the company reported operating earnings per share of $0.79 for the first quarter. Burns also cited operating pre-provision net revenue (PPNR) as a percentage of average assets of 1.81%, up 3.5% from the prior quarter and up 35% from a year earlier. A central theme of management’s remarks was net interest margin improvement. Burns said ConnectOne’s net interest margin expanded 12 basis points sequentially to 3.39%, following a 16 basis point widening in the prior quarter. Burns attributed the increase primarily to contractual loan repricings and improved deposit costs, and said the quarter “exceeded our initial projections.” → Allbirds Exits Shoes, Pivots to AI With NewBird Rebrand On the balance sheet, Burns said loan originations were strong and that the loan portfolio grew at an annualized rate of approximately 10%, representing about $300 million in growth for the quarter. He said this was “double the pace we saw in each of the two prior quarters,” with the loan pipeline remaining strong. While management anticipates mid-single-digit loan growth net of payoffs for the year, Sorrentino said it “could be a little higher, it could be a little lower,” noting payoffs have “come down a little bit,” helping reported growth. In response to an analyst question on new loan production, management said the pipeline was “about $635,” and the loans most recently put on were “about $620,” adding that “the spreads are being maintained nicely.” (Management did not specify units on the call.) → Amazon Stock Up 30%: Is AMZN Still a Buy Before Earnings? Burns said maintaining deposit growth that keeps pace with loan growth remains a focus. While client deposits grew in the quarter, he said the faster loan growth was funded partly by reductions in cash and investment securities and was “supplemented with some wholesale deposits.” On margin outlook, Burns said ConnectOne is maintaining its prior guidance for a year-end spot margin of 3.50%. He said the outlook reflects expectations for loans repricing higher, a competitive deposit pricing environment, and a “lower probability of rate cuts, maybe there’s one to come.” In follow-up discussion, Burns clarified that the 3.50% figure is a spot margin expectation as the company exits the year, and that management is estimating around 3.45% for the fourth quarter, describing that as a conservative view given uncertainty around loan repricing benefits and potential deposit cost increases. Burns also told analysts deposit costs are planned to be “flat for the year,” with most margin widening expected to come from loan repricing. In another modeling detail, management said fixed-rate loans coming up for repricing run at about $100 million a month, though the amount “fluctuates a little bit.” Later in the call, management provided an update on purchase accounting accretion: “It was $9.3 million in the most recent quarter,” Burns said, adding it averages about $9 million a quarter for this year and is expected to be about $8 million a quarter in 2027. Management said overall credit quality remained solid. Burns reported total non-performing assets declined to 0.29% of total assets, while criticized and classified loans fell to an historically low 2.26% of total loans. He also said net charge-offs on the non-PCD portfolio were “exceptionally clean” at 8 basis points annualized, a “recent low.” At the same time, executives addressed an increase in early-stage delinquencies tied to New York City rent-stabilized multifamily exposure. Burns said 30- to 59-day delinquencies rose to 0.81%, driven by one relationship that is “in the process of working out.” Sorrentino said the increase was due to “an isolated client relationship collateralized by 19 multifamily New York City rent-stabilized properties,” adding that the borrower has a strong multi-year payment track record and that “significant portions of the credit remain fundamentally sound.” Management emphasized the reserve and mark structure on the rent-stabilized portfolio. Burns said the total rent-stabilized portfolio declined over the past year to $675 million, down from $750 million at the close of the merger, through paydowns, payoffs and loan sales. He said $413 million (61%) of the $675 million portfolio came from the First of Long Island acquisition and was marked down through due diligence with “reserves and yield adjustments aggregating to $66 million,” bringing the carrying value for that portion to less than 85 cents on the dollar. The remaining $263 million originated by ConnectOne represents “just 2.2% of total loans,” Burns said, and carries an elevated reserve of $15 million. Combined with general reserves and purchase accounting marks, Burns said the company has a 12% offset to the aggregate rent-stabilized exposure, providing “more than $80 million in total value absorbing cushion.” Burns said the provision for loan losses was $5.2 million in the quarter, reflecting strong loan growth and increased qualitative factors tied to the multifamily portfolio, partially offset by improved economic forecasts in the company’s CECL model. He said the allowance for credit losses to loans remains “healthy” at 1.3%. Asked about LTV metrics for the delinquent rent-regulated credits, management said it could not provide that detail “at this time,” citing a rent-regulated market “in a state of flux” and difficulty determining current LTVs. Burns added that the majority of the rent-regulated portfolio is current and not impaired, and “we feel pretty good about the whole portfolio.” Burns said operating expenses remained controlled. Excluding merger and restructuring charges, non-interest expense was $55.7 million, and he is targeting 1.5% sequential growth per quarter going forward. Non-interest income was $6.8 million for the quarter. Burns said SBA gains were approximately $400,000 in the quarter, and that an additional $1.1 million in SBA gains recorded in April put the company ahead of its 2026 target, with “a third generated by BoeFly.” On capital, Burns said tangible book value per share rose 1.7% to $23.93, approaching the pre-merger level of $24.16. He also cited a tangible common equity ratio at the Bancorp of 8.64 and a bank leverage ratio of 10.81. Reflecting confidence in earnings and capital generation, Burns said the board approved an 8.3% increase in the common dividend. The company also repurchased 90,000 shares during the quarter at $26.21 per share, and Burns said ConnectOne intends to continue opportunistic repurchases, with more than 500,000 shares remaining under its authorization. In response to a question on capital allocation, Burns said management plans to repurchase about 100,000 shares per quarter for the rest of the year, depending on stock price and growth rates, and expects to keep a relatively low payout ratio even as dividends rise over time with earnings growth. On geographic expansion, Sorrentino said the company remains “very bullish” on Florida and is growing there in a measured way, increasing its team in the market from “4 or 5 individuals” initially to “past 18 or 19.” He described the Florida production mix as similar to New York—C&I, owner-occupied and non-owner occupied real estate—adding that a portion is tied to existing New York relationships. Asked about M&A, Sorrentino said the company remains focused on organic growth and leveraging opportunities from the First of Long Island integration, while staying open to conversations. “It’s very difficult to get to a place where something makes a lot of sense,” he said, adding he does not see anything “right at the moment that’s compelling.” Management also discussed efforts to improve efficiency through technology and AI. Sorrentino said the bank is deploying AI tools to streamline processes and reduce repetitive tasks, and he cited platforms such as nCino, Slack and Google (with Gemini) as examples where AI features can improve productivity and accuracy. He also said vendors are incorporating AI in their platforms and that these changes could help the company “scale faster and better with less human resources.” In closing remarks, Sorrentino said the company’s “earnings profile is solid and growing,” and that the balance sheet is well positioned, with management aiming to continue improving efficiency and executing on growth opportunities across its markets. ConnectOne Bancorp is a New Jersey‐based bank holding company whose primary subsidiary, ConnectOne Bank, offers a suite of commercial banking services to small and medium‐sized businesses, professionals and individuals. Established in 2005 and headquartered in Englewood Cliffs, New Jersey, the company seeks to deliver customized lending and deposit solutions through a network of branches across northern New Jersey and the New York metropolitan area. The company's lending portfolio centers on commercial real estate financing, construction lending, owner‐occupied real estate loans and working capital lines of credit. The article "ConnectOne Bancorp Q1 Earnings Call Highlights" was originally published by MarketBeat.