ConnectOne Bancorp (CNOB) investor relations material

Executive summary

• Net income available to common stockholders for Q2 2026 was $40.2 million, up from $36.3 million in Q1 2026 and a loss of $21.8 million in Q2 2025, driven by higher net interest income, lower provision for credit losses, increased noninterest income, and reduced noninterest expenses, reflecting the full integration of the FLIC merger.

• Diluted EPS for Q2 2026 was $0.80, up from $0.72 in Q1 2026 and a loss of $0.52 in Q2 2025.

• Operating performance accelerated with sequential loan growth of 5% and core deposit growth of 8% annualized.

• Net interest margin widened to 3.42%, marking the seventh consecutive quarterly increase and a 36 basis point rise year-over-year.

• Tangible book value per share increased to $24.66 as of June 30, 2026, up 3.1% sequentially and 12.4% year-over-year.

Financial highlights

• Fully taxable equivalent net interest income was $114.8 million, up 4.4% from Q1 2026 and 43.9% from Q2 2025.

• Noninterest income rose to $7.9 million, up over $1 million sequentially and $2.7 million year-over-year, driven by higher gains on loan sales and BOLI income.

• Noninterest expenses were $55.4 million, down $2.5 million sequentially and $18.2 million year-over-year, reflecting lower merger and restructuring charges.

• Provision for credit losses was $8.3 million, up from $5.2 million in Q1 2026 but down from $35.7 million in Q2 2025.

• Total assets reached $14.4 billion, loans receivable $11.9 billion, and total deposits $11.7 billion as of June 30, 2026.

Outlook and guidance

• Management expressed confidence in continued profitable growth and long-term value creation, citing strong business momentum and strategic execution.

• Full-year 2026 effective tax rate projected at approximately 28%, supported by a $50 million capital commitment to a renewable energy tax credit fund.

• Financial objectives for 2027 include ROA of 1.50%+, ROTCE of 15.0%+, and net interest margin of 3.60%.

• Loan growth expected to remain in the mid-single digits for 2026, supported by a strong pipeline.

• Year-end spot margin guidance maintained at 3.50% due to rising deposit costs, but margin expansion expected to continue into 2027.