ConnectOne projects 3.50% Q4 net interest margin following $750M multifamily loan sale (NASDAQ:CNOB)

ConnectOne Bancorp reported a 35% increase in Q3 2026 EPS, but faced a $23M non-operating charge from a loan sale. The company expects mid-single-digit loan growth and continued deposit cost pressure. CEO Frank Sorrentino and CFO William Burns discussed loan sale proceeds, net interest margin trajectory, credit outlook, and expense expectations. The bank plans to reinvest proceeds in lower-risk assets with higher yields. Tangible book value per share declined 1.9% sequentially to $24.19.

ConnectOne Bancorp sold $750M in non-relationship multifamily loans to focus on core banking, reducing rent-stabilized exposure by two-thirds. Core performance remains strong, with operating PPNR at 2% of average assets and return on tangible common equity exceeding 15%. The company expects net interest margin to reach 3.53% by Q4 2027 and plans to reinvest proceeds into lower-risk assets. A $23M non-operating pretax charge was recognized in Q3 due to interest rate changes.

ConnectOne (CNOB) reported Q3 2026 earnings, highlighting a $750M loan sale at a 3% loss, reducing CRE concentration and rent-stabilized exposure. Core performance was strong, with operating PPNR at 2.01% of assets, ROA at 1.35%, and ROE exceeding 15%. Deposits grew 11% annualized, and net interest margin widened to 3.44%. The company expects continued margin expansion and loan/deposit growth in mid-single digits.

ConnectOne Bancorp (CNOB) reported Q3 operating EPS of $0.95, up 13% sequentially and 35% YoY. Net interest margin expanded to 3.44%, with loan and deposit growth at 11% annualized. Management expects margin to reach 3.50% in Q4 and widen in 2027. Credit metrics improved, with non-accrual loans falling to $64M. The company plans to redeem preferred stock and repurchased 50,000 shares.

ConnectOne Bancorp, Inc. (CNOB) filed an SEC Form 8-K — Results of Operations and Financial Condition. Exhibit 99.1 CONNECTONE BANCORP, INC. ANNOUNCES THIRD QUARTER 2026 RESULTS INCLUDING BALANCE SHEET RESTRUCTURING AND REPOSITIONING OPERATING PERFORMANCE ACCELERATES PPNR RATIO SURPASSES 2% AND OPERATING RETURN ON TANGIBLE COMMON EQUITY TOPS 15% KEY METRICS STRENGTHENED BY BALANCE

ConnectOne Bancorp, Inc. (CNOB) filed an SEC Form 8-K — Results of Operations and Financial Condition. EX-99.1 2 ex_949727.htm EXHIBIT 99.1 ex_949727.htm Exhibit 99.1 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