ConnectOne Bancorp (CNOB) investor relations material

Executive summary

• Net income available to common stockholders for Q1 2026 was $36.3 million, up from $18.7 million in Q1 2025, with diluted EPS rising to $0.72 from $0.49 year-over-year, driven by the FLIC merger and strong loan growth.

• Achieved strong momentum in Q1 2026, exceeding strategic objectives set during the largest merger in company history.

• Diversified client base, improved deposit mix, and expanded geographic footprint to cover the NYC metro and South Florida.

• Disciplined expense management and integration of AI to enhance efficiency and scalability.

• Common dividend per share increased by 8.3% to $0.195.

Financial highlights

• Net interest income for Q1 2026 was $108.8 million, up from $65.8 million in Q1 2025, with net interest margin widening by 12 basis points sequentially to 3.39%.

• Operating earnings per share reached $0.79 for Q1 2026.

• Loan portfolio grew by $300 million, an annualized rate of 10%, double the pace of the previous two quarters.

• Noninterest income was $6.8 million, with SBA gains of $400,000 in Q1 and $1.1 million more in April.

• Noninterest expenses were $57.9 million, reflecting higher salaries, occupancy, and merger-related costs.

Outlook and guidance

• Management expects continued net interest margin expansion, targeting a year-end spot margin of 3.50%.

• Loan growth anticipated in the mid-single digits for the remainder of 2026.

• Deposit costs expected to remain flat for the year, with margin widening driven by loan repricing.

• Plan to repurchase about 100,000 shares per quarter, subject to market conditions and growth rates.

• Interest rate sensitivity models indicate a 200 bps rate increase would decrease net interest income by 4.71% over one year, while a 100 bps decrease would increase it by 2.73%.