ConnectOne Bancorp (CNOB) investor relations material

Executive summary

• Operating PPNR reached 2.01% of average assets, operating ROTCE was 15.17%, and NIM widened to 3.44%.

• A $750 million multifamily loan sale is expected to reduce CRE and rent-regulated exposure, improve liquidity, and preserve earnings power; a $23.0 million pretax restructuring loss reduced GAAP Q3 earnings.

Financial highlights

• GAAP net income available to common stockholders was $29.9 million and diluted EPS was $0.59, versus $40.2 million and $0.80 in Q2 2026 and $39.5 million and $0.78 in Q3 2025.

• Excluding restructuring and other non-operating items, operating net income was $47.9 million and diluted EPS was $0.95, up 13% QoQ and 35% YoY.

• FTE net interest income was $118.5 million, up 3.2% QoQ and 14.8% YoY; NIM rose to 3.44% from 3.42% QoQ and 3.11% YoY.

• Noninterest expenses were $55.4 million, flat QoQ and down $3.3 million YoY; operating noninterest income was $8.5 million, including $1.1 million of one-time BOLI income items.

Outlook and guidance

• Q4 NIM is projected at 3.50%, with continued widening modeled through 2027; the year-end 2027 level depends on the number and direction of Fed moves.

• Loan and deposit growth are projected in the mid-single digits, with a loans-to-deposits ratio below 100%.

• Q4 operating expenses are expected to rise 2%–2.5% sequentially; 2027 expense growth is expected to be no more than mid-single digits. Q4 effective tax rate is projected at 27.5%.

• Provision expense is expected to remain fairly stable; remaining rent-stabilized loan reductions could involve charge-offs of $3 million–$5 million per quarter.

• SBA gains could increase 50% or more in 2027 versus 2026, supported by a strong pipeline.