NET INTEREST MARGIN WIDENS BY 12 BASIS POINTS; TREND CONFIRMED

10% ANNUALIZED LOAN GROWTH

OPERATING PERFORMANCE ACCELERATES

TANGIBLE BOOK VALUE PER SHARE INCREASES

8.3% INCREASE IN COMMON DIVIDEND PER SHARE DECLARED

ENGLEWOOD CLIFFS, N.J., April 23, 2026 (GLOBE NEWSWIRE) -- ConnectOne Bancorp, Inc. (NASDAQ:CNOB) (the "Company" or "ConnectOne"), parent company of ConnectOne Bank (the "Bank"), today reported net income available to common stockholders of $36.3 million for the first quarter of 2026 compared with $38.0 million for the fourth quarter of 2025 and $18.7 million for the first quarter of 2025. Diluted earnings per share were $0.72 for the first quarter of 2026 compared with $0.75 for the fourth quarter of 2025 and $0.49 for the first quarter of 2025. Return on average assets was 1.10%, 1.12% and 0.84% for the three months ended March 31, 2026, December 31, 2025 and March 31, 2025, respectively. Return on average tangible common equity was 12.89%, 13.66% and 8.25% for the three months ended March 31, 2026, December 31, 2025 and March 31, 2025, respectively.

Pre-provision net operating revenue ("Operating PPNR") as a percentage of average assets was 1.81%, 1.75% and 1.34% for the quarters ending March 31, 2026, December 31, 2025 and March 31, 2025, respectively. The sequential increase in Operating PPNR was primarily due to a $2.2 million increase in net interest income, partially offset by a $0.9 million increase in operating expenses. Operating net income available to common stockholders was $39.6 million for the first quarter of 2026, $42.0 million for the fourth quarter of 2025 and $19.7 million for the first quarter of 2025. Operating diluted earnings per share were $0.79 for the first quarter of 2026, $0.83 for the fourth quarter of 2025 and $0.51 for the first quarter of 2025. Operating return on average assets was 1.19%, 1.24% and 0.88% for the three months ended March 31, 2026, December 31, 2025 and March 31, 2025, respectively. Operating return on average tangible common equity was 13.35%, 14.27% and 8.59% for the three months ended March 31, 2026, December 31, 2025 and March 31, 2025, respectively. See supplemental tables for a complete reconciliation of GAAP earnings to operating earnings, and other non-GAAP measures.

The decrease in net income available to common stockholders during the first quarter of 2026 when compared to the fourth quarter of 2025 was primarily due to a $2.9 million increase in the provision for credit losses, a $0.9 million increase in noninterest expenses and a $0.9 million increase in income tax expense, which were partially offset by a $2.2 million increase in net interest income and a $0.8 million increase in noninterest income. The first quarter of 2026 included restructuring charges related to the merger with the First of Long Island Corporation ("FLIC") of $2.0 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 first quarter of 2026 when compared to the first quarter of 2025 was primarily due to a $43.0 million increase in net interest income and a $2.3 million increase in noninterest income, which was partially offset by an increase in noninterest expense of $18.6 million and an increase in income tax expense of $7.5 million. The variances from the first quarter of 2026 to the first quarter of 2025 were primarily due to the merger with FLIC.

"ConnectOne began 2026 with robust momentum, positioning us for what we expect to be a strong year," commented Frank Sorrentino, ConnectOne's Chairman and Chief Executive Officer. "Loans and deposits both grew sequentially at an annualized rate of approximately 10%, while our net interest margin expanded by 12 basis points. Accelerating portfolio loan yields are expected to support continued net interest margin expansion in the quarters ahead, even without further rate cuts."

"Expenses remain well-controlled as we continue to leverage merger synergies and drive additional productivity gains through increasing use of AI workflow across the organization." Mr. Sorrentino added, "During the first quarter, our strong retained earnings supported loan growth, share repurchases, and a 1.7% increase in tangible book value per share; we are now approximately one quarter away from returning to our pre-merger tangible book value per share of $24.16."

"Our credit quality remained solid this quarter. Although 30-59 day delinquencies increased due to one isolated credit relationship, net charge-offs (excluding PCD loans) declined to just 8 basis points annualized, a recent low. The nonaccrual loan ratio also decreased, while criticized and classified asset metrics remained at historically low levels, underscoring our continued portfolio management strength."

"Subsequent to quarter-end, noninterest income continued to build momentum, driven by accelerating SBA loan sale activity. We generated an additional $1.1 million in gains in April, and the pipeline remains robust." Mr. Sorrentino concluded, "Looking ahead to the remainder of the year, we're executing against our strategic priorities and remain well positioned to deliver long-term value for our shareholders in 2026 and beyond."

Dividend Declarations

The Company announced that its Board of Directors declared an increased quarterly cash dividend on its common stock and declared a cash dividend on its outstanding preferred stock. A cash dividend on common stock of $0.195 per share, reflecting an increase of $0.015, or 8.3%, will be paid on June 1, 2026, to common stockholders of record on May 15, 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 June 1, 2026 to holders of record on May 15, 2026.

Operating Results

Fully taxable equivalent net interest income for the first quarter of 2026 was $110.0 million, an increase of $2.2 million, or 2.1%, from the fourth quarter of 2025, largely due to a 12 basis-point widening of the net interest margin to 3.39% from 3.27%. The margin benefited from an increase in the yield on interest-earning assets, primarily due to loan repricing, combined with a 12 basis-point decrease in the average costs of deposits, including noninterest-bearing deposits, and partially offset by an increased cost in borrowed funds.

Fully taxable equivalent net interest income for the first quarter of 2026 increased $43.4 million, or 65.2%, from the first quarter of 2025, due to a 46 basis-point widening of the net interest margin to 3.39% from 2.93%, and a 42.7% 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 20 basis-point increase in the yield on interest-earning assets and a 49 basis-point decrease in the average costs of deposits, including noninterest-bearing deposits.

Noninterest income was $6.8 million in the first quarter of 2026, $6.0 million in the fourth quarter of 2025 and $4.5 million in the first quarter of 2025. The increase compared to the fourth quarter of 2025 was primarily due to a $1.0 million increase in net gains (losses) on equity securities. The increase compared to the first quarter of 2025 was primarily due to a $1.4 million increase in BOLI income and a $1.3 million increase in deposit, loan and other income, which was partially offset by a $0.4 million decrease in net gains (losses) 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. Extending this positive momentum into the second quarter, the Company realized an additional $1.1 million in SBA loan sale gains in April 2026.

Noninterest expenses were $57.9 million for the first quarter of 2026, $56.9 million for the fourth quarter of 2025 and $39.3 million for the first quarter of 2025. Excluding merger expenses and restructuring charges and branch closing expenses, noninterest expenses totaled $55.7 million in the first quarter of 2026, $55.2 million in the fourth quarter of 2025 and $38.0 million in the first quarter of 2025. The increase of $0.6 million during the first quarter of 2026 when compared to the fourth quarter of 2025 was primarily due to a $1.6 million increase in salaries and employee benefits, which was partially offset by a $0.4 million decrease in FDIC insurance expense and a $0.4 million decrease in amortization of core deposit intangible. The $17.8 million increase in noninterest expenses for the first quarter of 2026 when compared to the first quarter of 2025 was primarily due to a $10.2 million increase in salaries and employee benefits, a $2.7 million increase in occupancy and equipment expenses, a $2.6 million increase in amortization of core deposit intangibles, a $0.8 million increase in other expenses, a $0.7 million increase in professional and consulting expense, and a $0.6 million increase in information technology and communication expenses. The variances from the first quarter of 2026 to the first quarter of 2025 were primarily due to the merger with FLIC.

Income tax expense was $14.7 million for the first quarter of 2026, $13.9 million for the fourth quarter of 2025 and $7.2 million for the first quarter of 2025. The effective tax rates were 28.0%, 26.0% and 26.1% for the first quarter of 2026, fourth quarter of 2025 and first quarter of 2025, respectively. The increase in effective rates when compared to 2025 was primarily due to state and local apportionment factors associated with the FLIC merger.

Asset Quality

The provision for credit losses was $5.2 million for the first quarter of 2026, $2.3 million for the fourth quarter of 2025 and $3.5 million for the first quarter of 2025. In each of the quarters presented, the provision for credit losses reflected net portfolio growth, charges related to individually evaluated loans, and changing macroeconomic forecasts and conditions. The current quarter's provision was driven by higher loan growth and increased qualitative factors, which were partially offset by improved loss drivers within our quantitative CECL model reflecting improved economic forecasts.

Nonperforming assets, which includes nonaccrual loans and other real estate owned (the Bank had no other real estate owned during the periods reported), were $41.6 million as of March 31, 2026, $45.9 million as of December 31, 2025 and $49.9 million as of March 31, 2025. Nonperforming assets as a percentage of total assets improved to 0.29% as of March 31, 2026, versus 0.33% as of December 31, 2025 and 0.51% as of March 31, 2025. The ratio of nonaccrual loans to loans receivable also improved to 0.35%, as of March 31, 2026, versus 0.40% and 0.61%, at December 31, 2025 and March 31, 2025, respectively. The annualized net loan charge-offs ratio (excluding PCD loans) was 0.08% for the first quarter of 2026, 0.17% for the fourth quarter of 2025 and 0.17% for the first quarter of 2025.

The allowance for credit losses ("ACL") represented 1.30%, 1.35% and 1.00% of loans receivable as of March 31, 2026, December 31, 2025 and March 31, 2025, respectively. The ACL decreased $1.2 million to $153.1 million as of March 31, 2026, compared to $154.3 million as of December 31, 2025. The ACL as a percentage of nonaccrual loans was 368.1% as of March 31, 2026, 336.1% as of December 31, 2025 and 165.3% as of March 31, 2025.

Criticized and classified loans as a percentage of loans receivable improved to 2.26% as of March 31, 2026, down from 2.49% as of December 31, 2025 and from 2.79% as of March 31, 2025. Loans past due 30-59 days were 0.81% of loans receivable as of March 31, 2026, 0.19% as of December 31, 2025 and 0.18% as of March 31, 2025. This rise is predominantly due to an interrelated series of credits totaling $63.8 million secured by 19 multifamily NYC rent-regulated properties. We are working with our client to resolve these credits; however, the resulting financial impact cannot be determined at this time.

The Bank maintains a solid reserve position, particularly within its rent-regulated multifamily portfolio, which includes significant credit and fair value marks applicable to the portfolio acquired from FLIC, in addition to qualitative ACL allocations applicable to its legacy portfolio. The following table provides additional information on the Bank's New York City ("NYC") rent-regulated portfolio as of March 31, 2026:

($millions)	Portfolio Composition			% of Total Loans			Unpaid Principal Balance		Offsets ⁽³⁾			Offset %			Avg. Loan Size
Acquired Portfolio ⁽¹⁾		61.0	%		3.5	%	$	412.5	$	(66.1	)		16.0	%	$	2.4
Legacy ConnectOne ⁽²⁾		39.0			2.2			263.4		(14.8	)		5.6			2.9
Total Rent-Regulated		100.0	%		5.7	%	$	675.9	$	(80.9	)		12.0			2.6


Note: Rent-regulated includes loans secured by multifamily properties with 50% or greater units subject to NYC rent-stabilization guidelines.
⁽¹⁾Portfolio acquired in merger with FLIC on June 1, 2025.
⁽²⁾Loans originated by the Bank.
⁽³⁾Offsets include (i) general reserves plus (ii) for the Acquired Portfolio, the applicable nonaccretable and accretable purchase accounting loan marks and (iii) for Legacy ConnectOne, an additional qualitative reserve applicable to rent-regulated multifamily.

Selected Balance Sheet Items

The Company's total assets were $14.2 billion as of March 31, 2026, compared to $14.0 billion as of December 31, 2025. Loans receivable were $11.7 billion as of March 31, 2026 and $11.5 billion as of December 31, 2025. Total deposits were $11.5 billion as of March 31, 2026 and $11.2 billion as of December 31, 2025.

The Company's total stockholders' equity increased to $1.592 billion as of March 31, 2026 from $1.573 billion as of December 31, 2025. Retained earnings increased $27.3 million, partially offset by an increase in the accumulated other comprehensive loss of $6.2 million. As of March 31, 2026, the Company's tangible common equity ratio and tangible book value per share were 8.64% and $23.93, respectively, compared to 8.62% and $23.52, respectively, as of December 31, 2025. Total goodwill and other intangible assets were $277.3 million as of March 31, 2026, and $280.2 million as of December 31, 2025.

Share Repurchase Program

During the first quarter of 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 may 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.

First Quarter 2026 Results Conference Call

Management will also host a conference call and audio webcast at 10:00 a.m. ET on April 23, 2026, to review the Company's financial performance and operating results. The conference call dial-in number is 1 (646) 307-1963, access code 8368502. 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.

A replay of the conference call will be available beginning at approximately 1:00 p.m. ET on Thursday, April 23, 2026 and ending on Thursday, April 30, 2026, by dialing 1 (609) 800-9909, access code 8368502. 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. Burns

Senior Executive Vice President & CFO

201.816.4474; bill.burns@cnob.com

Media Contact:

Shannan Weeks

MikeWorldWide

732.299.7890; sweeks@mww.com

CONNECTONE BANCORP, INC. AND SUBSIDIARIES
CONSOLIDATED CONDENSED STATEMENTS OF FINANCIAL CONDITION
(in thousands)
	March 31,			December 31,			March 31,
		2026			2025			2025
	(unaudited)						(unaudited)
ASSETS
Cash and due from banks	$	39,472		$	92,406		$	49,759
Interest-bearing deposits with banks		304,999			288,489			242,844
Cash and cash equivalents		344,471			380,895			292,603

Investment securities		1,196,384			1,250,938			636,806
Equity securities		19,422			19,287			18,859

Loans held-for-sale		10,222			391			202

Loans receivable		11,735,596			11,453,280			8,201,134
Less: Allowance for credit losses - loans		153,056			154,305			82,403
Net loans receivable		11,582,540			11,298,975			8,118,731

Investment in restricted stock, at cost		51,464			54,722			37,031
Bank premises and equipment, net		54,765			55,285			27,624
Accrued interest receivable		62,473			60,761			46,740
Bank owned life insurance		373,664			370,713			244,651
Right of use operating lease assets		27,960			29,603			13,755
Goodwill		220,235			220,235			208,372
Core deposit intangibles		57,078			59,923			4,360
Other assets		208,883			200,972			109,521
Total assets	$	14,209,561		$	14,002,700		$	9,759,255

LIABILITIES
Deposits:
Noninterest-bearing	$	2,393,938		$	2,420,397		$	1,319,196
Interest-bearing		9,119,115			8,820,218			6,448,034
Total deposits		11,513,053			11,240,615			7,767,230
Borrowings		827,477			903,489			613,053
Subordinated debentures, net		202,050			201,864			80,071
Operating lease liabilities		30,560			32,446			14,737
Other liabilities		44,874			50,946			31,225
Total liabilities		12,618,014			12,429,360			8,506,316

COMMITMENTS AND CONTINGENCIES

STOCKHOLDERS' EQUITY
Preferred stock		110,927			110,927			110,927
Common stock		857,765			857,765			586,946
Additional paid-in capital		38,257			38,763			36,007
Retained earnings		701,154			673,897			643,265
Treasury stock		(78,507	)		(76,116	)		(76,116	)
Accumulated other comprehensive loss		(38,049	)		(31,896	)		(48,090	)
Total stockholders' equity		1,591,547			1,573,340			1,252,939
Total liabilities and stockholders' equity	$	14,209,561		$	14,002,700		$	9,759,255

CONNECTONE BANCORP, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF INCOME
(dollars in thousands, except for per share data)
	Three Months Ended
	03/31/26		12/31/25			03/31/25
Interest income
Interest and fees on loans	$	168,298	$	167,532		$	115,351
Interest and dividends on investment securities:
Taxable		10,799		11,628			4,987
Tax-exempt		1,978		1,995			1,097
Dividends		935		936			889
Interest on federal funds sold and other short-term investments		2,387		4,249			2,465
Total interest income		184,397		186,340			124,789
Interest expense
Deposits		65,682		70,854			53,992
Borrowings		9,911		8,891			5,041
Total interest expense		75,593		79,745			59,033

Net interest income		108,804		106,595			65,756
Provision for credit losses		5,200		2,300			3,500
Net interest income after provision for credit losses		103,604		104,295			62,256

Noninterest income
Deposit, loan and other income		3,283		3,289			2,006
Income on bank owned life insurance		2,951		2,946			1,584
Net gains on sale of loans held-for-sale		427		631			332
Net gains (losses) on equity securities		135		(846	)		529
Total noninterest income		6,796		6,020			4,451

Noninterest expenses
Salaries and employee benefits		32,768		31,211			22,578
Occupancy and equipment		5,345		5,265			2,680
FDIC insurance		2,000		2,400			1,800
Professional and consulting		3,108		2,908			2,366
Marketing and advertising		926		974			595
Information technology and communications		5,243		5,366			4,604
Merger expenses and restructuring charges		2,125		498			1,320
Branch closing expenses		—		1,275			—
Bank owned life insurance restructuring charge		—		—			327
Amortization of core deposit intangibles		2,845		3,196			279
Other expenses		3,509		3,853			2,756
Total noninterest expenses		57,869		56,946			39,305

Income before income tax expense		52,531		53,369			27,402
Income tax expense		14,709		13,851			7,160
Net income		37,822		39,518			20,242
Preferred dividends		1,509		1,509			1,509
Net income available to common stockholders	$	36,313	$	38,009		$	18,733

Earnings per common share:
Basic	$	0.72	$	0.76		$	0.49
Diluted		0.72		0.75			0.49

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, INC.
SUPPLEMENTAL GAAP AND NON-GAAP FINANCIAL MEASURES
	As of
	Mar. 31,				Dec. 31,				Sept. 30,				Jun. 30,				Mar. 31,
		2026				2025				2025				2025				2025
Selected Financial Data	(dollars in thousands)
Total assets	$	14,209,561			$	14,002,700			$	14,023,585			$	13,915,738			$	9,759,255
Loans receivable:
Commercial		1,638,836				1,558,436				1,613,421				1,597,590				1,483,392
Commercial real estate		4,750,508				4,625,143				4,310,159				4,285,663				3,356,943
Multifamily		3,574,336				3,437,080				3,420,465				3,348,308				2,490,256
Commercial construction		571,073				623,902				728,615				681,222				617,593
Residential		1,202,539				1,210,980				1,233,305				1,254,646				256,555
Consumer		1,801				2,017				2,166				1,709				1,604
Gross loans		11,739,093				11,457,558				11,308,131				11,169,138				8,206,343
Net deferred loan fees		(3,497	)			(4,278	)			(4,495	)			(4,661	)			(5,209	)
Loans receivable		11,735,596				11,453,280				11,303,636				11,164,477				8,201,134
Loans held-for-sale		10,222				391				—				1,027				202
Total loans	$	11,745,818			$	11,453,671			$	11,303,636			$	11,165,504			$	8,201,336

Investment and equity securities	$	1,215,806			$	1,270,225			$	1,272,335			$	1,246,907			$	655,665
Goodwill and other intangible assets		277,313				280,158				278,730				281,926				212,732
Deposits:
Noninterest-bearing demand	$	2,393,938			$	2,420,397			$	2,513,102			$	2,424,529			$	1,319,196
Time deposits		3,010,971				2,796,877				2,977,952				3,065,015				2,550,223
Other interest-bearing deposits		6,108,144				6,023,341				5,878,241				5,788,943				3,897,811
Total deposits	$	11,513,053			$	11,240,615			$	11,369,295			$	11,278,487			$	7,767,230

Borrowings	$	827,477			$	903,489			$	833,443			$	783,859			$	613,053
Subordinated debentures (net of debt issuance costs)		202,050				201,864				201,677				276,500				80,071
Total stockholders' equity		1,591,547				1,573,340				1,538,344				1,496,431				1,252,939

Quarterly Average Balances
Total assets	$	13,999,581			$	13,963,138			$	14,050,585			$	11,108,430			$	9,748,605
Loans receivable:
Commercial	$	1,579,368			$	1,597,123			$	1,583,673			$	1,486,245			$	1,488,962
Commercial real estate (including multifamily)		8,137,515				7,822,943				7,630,195				6,404,302				5,852,342
Commercial construction		613,661				646,414				704,170				643,115				610,859
Residential		1,204,082				1,221,171				1,241,375				587,118				256,430
Consumer		6,851				5,473				6,747				5,759				5,687
Gross loans		11,541,477				11,293,124				11,166,160				9,126,539				8,214,280
Net deferred loan fees		(4,042	)			(4,708	)			(4,418	)			(5,097	)			(5,525	)
Loans receivable		11,537,435				11,288,416				11,161,742				9,121,442				8,208,755
Loans held-for-sale		335				230				318				352				259
Total loans	$	11,537,770			$	11,288,646			$	11,162,060			$	9,121,794			$	8,209,014

Investment and equity securities	$	1,256,147			$	1,269,275			$	1,274,000			$	845,614			$	655,191
Goodwill and other intangible assets		279,158				279,165				280,814				235,848				212,915
Deposits:
Noninterest-bearing demand		2,384,883				2,473,596				2,486,993				1,680,653				1,305,722
Time deposits		2,901,327				2,946,459				3,019,848				2,662,411				2,480,990
Other interest-bearing deposits		5,996,487				5,907,547				5,889,230				4,463,648				3,888,131
Total deposits	$	11,282,697			$	11,327,602			$	11,396,071			$	8,806,712			$	7,674,843

Borrowings	$	833,551			$	781,388			$	783,994			$	723,303			$	686,391
Subordinated debentures (net of debt issuance costs)		201,928				201,741				263,511				170,802				79,988
Total stockholders' equity		1,594,699				1,558,366				1,513,892				1,344,254				1,254,373

	Three Months Ended
	Mar. 31,				Dec. 31,				Sept. 30,				Jun. 30,				Mar. 31,
		2026				2025				2025				2025				2025
	(dollars in thousands, except for per share data)
Net interest income	$	108,804			$	106,595			$	102,017			$	78,883			$	65,756
Provision for credit losses		5,200				2,300				5,500				35,700				3,500
Net interest income after provision for credit losses		103,604				104,295				96,517				43,183				62,256
Noninterest income
Deposit, loan and other income		3,283				3,289				3,836				2,570				2,006
Defined benefit pension plan curtailment gain		—				—				3,501				—				—
Employee retention tax credit		—				—				6,608				—				—
Income on bank owned life insurance		2,951				2,946				2,931				2,087				1,584
Net gains on sale of loans held-for-sale		427				631				859				181				332
Net gains (losses) on equity securities		135				(846	)			1,674				347				529
Total noninterest income		6,796				6,020				19,409				5,185				4,451
Noninterest expenses
Salaries and employee benefits		32,768				31,211				32,401				25,233				22,578
Occupancy and equipment		5,345				5,265				5,122				3,478				2,680
FDIC insurance		2,000				2,400				2,400				2,000				1,800
Professional and consulting		3,108				2,908				2,929				2,598				2,366
Marketing and advertising		926				974				771				840				595
Information technology and communications		5,243				5,366				5,243				4,792				4,604
Restructuring and exit charges		—				—				994				—				—
Merger expenses and restructuring charges		2,125				498				1,898				30,745				1,320
Branch closing expenses		—				1,275				—				—				—
Bank owned life insurance restructuring charge		—				—				—				—				327
Amortization of core deposit intangible		2,845				3,196				3,196				1,251				279
Other expenses		3,509				3,853				3,719				2,712				2,756
Total noninterest expenses		57,869				56,946				58,673				73,649				39,305

Income (loss) before income tax expense		52,531				53,369				57,253				(25,281	)			27,402
Income tax expense (benefit)		14,709				13,851				16,277				(4,988	)			7,160
Net income (loss)		37,822				39,518				40,976				(20,293	)			20,242
Preferred dividends		1,509				1,509				1,509				1,509				1,509
Net income (loss) available to common stockholders	$	36,313			$	38,009			$	39,467			$	(21,802	)		$	18,733

Weighted average diluted common shares outstanding		50,382,297				50,414,115				50,462,030				42,173,758				38,511,237
Diluted EPS	$	0.72			$	0.75			$	0.78			$	(0.52	)		$	0.49

Reconciliation of GAAP Net Income to Operating Net Income:
Net income (loss)	$	37,822			$	39,518			$	40,976			$	(20,293	)		$	20,242
Restructuring and exit charges		—				—				994				—				—
Merger expenses and restructuring charges		2,125				498				1,898				30,745				1,320
Estimated state tax liability on intercompany dividends		—				—				—				3,000				—
Initial provision for credit losses related to merger		—				—				—				27,418				—
Branch closing expenses		—				1,275				—				—				—
Bank owned life insurance restructuring charge		—				—				—				—				327
Amortization of core deposit intangibles		2,845				3,196				3,196				1,251				279
Net (gains) losses on equity securities		(135	)			846				(1,674	)			(347	)			(529	)
Defined benefit pension plan curtailment gain		—				—				(3,501	)			—				—
Employee retention tax credit		—				—				(6,608	)			—				—
Tax impact of adjustments		(1,499	)			(1,802	)			1,737				(17,168	)			(420	)
Operating net income	$	41,158			$	43,531			$	37,018			$	24,606			$	21,219
Preferred dividends		1,509				1,509				1,509				1,509				1,509
Operating net income available to common stockholders	$	39,649			$	42,022			$	35,509			$	23,097			$	19,710

Operating diluted EPS (non-GAAP) (1)	$	0.79			$	0.83			$	0.70			$	0.55			$	0.51

Return on Assets Measures
Average assets	$	13,999,581			$	13,963,138			$	14,050,585			$	11,108,430			$	9,748,605
Return on avg. assets		1.10		%		1.12		%		1.16		%		(0.73	)	%		0.84		%
Operating return on avg. assets (non-GAAP) (2)		1.19				1.24				1.05				0.89				0.88
Pre-provision net operating revenue ("PPNR") return on avg. assets (non-GAAP) (3)		1.81				1.75				1.61				1.52				1.34

(1) Operating net income available to common stockholders divided by weighted average diluted shares outstanding.
(2) Operating net income divided by average assets.
(3) Net income before income tax expense, provision for credit losses, merger expenses and restructuring charges, branch closing expenses, BOLI restructuring charges, restructuring and exit charges, employee retention tax credit, defined benefit pension plan curtailment gain, amortization of core deposit intangibles and net gains on equity securities divided by average assets.


	Three Months Ended
	Mar. 31,				Dec. 31,				Sept. 30,				Jun. 30,				Mar. 31,
		2026				2025				2025				2025				2025
Return on Equity Measures	(dollars in thousands)
Average stockholders' equity	$	1,594,699			$	1,558,366			$	1,513,892			$	1,344,254			$	1,254,373
Less: average preferred stock		(110,927	)			(110,927	)			(110,927	)			(110,927	)			(110,927	)
Average common equity	$	1,483,772			$	1,447,439			$	1,402,965			$	1,233,327			$	1,143,446
Less: average intangible assets		(279,158	)			(279,165	)			(280,814	)			(235,848	)			(212,915	)
Average tangible common equity	$	1,204,614			$	1,168,274			$	1,122,151			$	997,479			$	930,531
Return on avg. common equity (GAAP)		9.93		%		10.42		%		11.16		%		(7.09	)	%		6.64		%
Operating return on avg. common equity (non-GAAP) (4)		10.84				11.52				10.04				7.51				6.99
Return on avg. tangible common equity (non-GAAP) (5)		12.89				13.66				14.74				(8.42	)			8.25
Operating return on avg. tangible common equity (non-GAAP) (6)		13.35				14.27				12.55				9.29				8.59

Efficiency Measures
Total noninterest expenses	$	57,869			$	56,946			$	58,673			$	73,649			$	39,305
Restructuring and exit charges		—				—				(994	)			—				—
Merger expenses and restructuring charges		(2,125	)			(498	)			(1,898	)			(30,745	)			(1,320	)
Branch closing expenses		—				(1,275	)			—				—				—
Bank owned life insurance restructuring charge		—				—				—				—				(327	)
Amortization of core deposit intangibles		(2,845	)			(3,196	)			(3,196	)			(1,251	)			(279	)
Operating noninterest expense	$	52,899			$	51,977			$	52,585			$	41,653			$	37,379

Net interest income (tax equivalent basis)	$	109,976			$	107,761			$	103,155			$	79,810			$	66,580
Noninterest income		6,796				6,020				19,409				5,185				4,451
Defined benefit pension plan curtailment gain		—				—				(3,501	)			—				—
Employee retention tax credit		—				—				(6,608	)			—				—
Net (gains) losses on equity securities		(135	)			846				(1,674	)			(347	)			(529	)
Operating revenue	$	116,637			$	114,627			$	110,781			$	84,648			$	70,502

Operating efficiency ratio (non-GAAP) (7)		45.4		%		45.3		%		47.5		%		49.2		%		53.0		%

Net Interest Margin
Average interest-earning assets	$	13,160,794			$	13,093,053			$	13,172,443			$	10,468,589			$	9,224,712
Net interest income (tax equivalent basis)	$	109,976			$	107,761			$	103,155			$	79,810			$	66,580
Net interest margin (non-GAAP)		3.39		%		3.27		%		3.11		%		3.06		%		2.93		%

(4) Operating net income available to common stockholders divided by average common equity.
(5) Net income available to common stockholders, excluding amortization of intangible assets, divided by average tangible common equity.
(6) Operating net income available to common stockholders, divided by average tangible common equity.
(7) Operating noninterest expense divided by operating revenue.

	As of
	Mar. 31,				Dec. 31,				Sept. 30,				Jun. 30,				Mar. 31,
		2026				2025				2025				2025				2025
Capital Ratios and Book Value per Share	(dollars in thousands, except for per share data)
Stockholders equity	$	1,591,547			$	1,573,340			$	1,538,344			$	1,496,431			$	1,252,939
Less: preferred stock		(110,927	)			(110,927	)			(110,927	)			(110,927	)			(110,927	)
Common equity	$	1,480,620			$	1,462,413			$	1,427,417			$	1,385,504			$	1,142,012
Less: intangible assets		(277,313	)			(280,158	)			(278,730	)			(281,926	)			(212,732	)
Tangible common equity	$	1,203,307			$	1,182,255			$	1,148,687			$	1,103,578			$	929,280

Total assets	$	14,209,561			$	14,002,700			$	14,023,585			$	13,915,738			$	9,759,255
Less: intangible assets		(277,313	)			(280,158	)			(278,730	)			(281,926	)			(212,732	)
Tangible assets	$	13,932,248			$	13,722,542			$	13,744,855			$	13,633,812			$	9,546,523

Common shares outstanding		50,288,494				50,271,854				50,273,089				50,270,162				38,469,975

Common equity ratio (GAAP)		10.42		%		10.44		%		10.18		%		9.96		%		11.70		%
Tangible common equity ratio (non-GAAP) (8)		8.64				8.62				8.36				8.09				9.73

Regulatory capital ratios (Bancorp):
Leverage ratio		9.79		%		9.61		%		9.35		%		11.58		%		11.33		%
Common equity Tier 1 risk-based ratio		10.23				10.24				10.17				10.04				11.14
Risk-based Tier 1 capital ratio		11.19				11.22				11.17				11.06				12.46
Risk-based total capital ratio		13.81				13.88				13.88				14.35				14.29

Regulatory capital ratios (Bank):
Leverage ratio		10.81		%		10.59		%		10.35		%		12.81		%		11.67		%
Common equity Tier 1 risk-based ratio		12.36				12.36				12.37				12.22				12.82
Risk-based Tier 1 capital ratio		12.36				12.36				12.37				12.22				12.82
Risk-based total capital ratio		13.34				13.33				13.38				13.24				13.79

Book value per share (GAAP)	$	29.44			$	29.09			$	28.39			$	27.56			$	29.69
Tangible book value per share (non-GAAP) (9)		23.93				23.52				22.85				21.95				24.16

(8) Tangible common equity divided by tangible assets
(9) Tangible common equity divided by common shares outstanding at period-end

	As of
	Mar. 31,				Dec. 31,				Sept. 30,				Jun. 30,				Mar. 31,
		2026				2025				2025				2025				2025
Net Loan Charge-offs (Recoveries) (10):	(dollars in thousands)
Net loan charge-offs (recoveries):
Charge-offs	$	2,758			$	5,613			$	5,174			$	5,039			$	3,555
Recoveries		(467	)			(836	)			(38	)			(118	)			(155	)
Net loan charge-offs	$	2,291			$	4,777			$	5,136			$	4,921			$	3,400
Net loan charge-offs as a % of average loans receivable (annualized)		0.08		%		0.17		%		0.18		%		0.22		%		0.17		%

(10) Includes only non-PCD loans


	As of
	Mar. 31,				Dec. 31,				Sept. 30,				Jun. 30,				Mar. 31,
		2026				2025				2025				2025				2025
Asset Quality	(dollars in thousands)
Nonaccrual loans	$	41,579			$	45,915			$	39,671			$	39,228			$	49,860
Other real estate owned		—				—				—				—				—
Nonperforming assets	$	41,579			$	45,915			$	39,671			$	39,228			$	49,860

Allowance for credit losses - loans (excluding nonaccretable credit marks)	$	115,398			$	112,282			$	113,163			$	112,854			$	82,230
Add: nonaccretable credit marks		37,658				42,023				43,336				43,336				173
Allowance for credit losses - loans ("ACL")	$	153,056			$	154,305			$	156,499			$	156,190			$	82,403

Loans receivable	$	11,735,596			$	11,453,280			$	11,303,636			$	11,164,477			$	8,201,134

Nonaccrual loans as a % of loans receivable		0.35		%		0.40		%		0.35		%		0.35		%		0.61		%
Nonperforming assets as a % of total assets		0.29				0.33				0.28				0.28				0.51
ACL as a % of loans receivable		1.30				1.35				1.38				1.40				1.00
ACL as a % of nonaccrual loans		368.1				336.1				394.5				398.2				165.3

CONNECTONE BANCORP, INC.
NET INTEREST MARGIN ANALYSIS
(dollars in thousands)
	For the Three Months Ended
	March 31, 2026								December 31, 2025									March 31, 2025
	Average									Average									Average
Interest-earning assets:	Balance			Interest			Rate ⁽⁷⁾			Balance			Interest			Rate ⁽⁷⁾			Balance			Interest			Rate ⁽⁷⁾
Investment securities ^{(1) (2)}	$	1,307,184		$	13,302		4.13	%		$	1,329,393		$	14,154		4.22	%		$	745,873		$	6,375		3.47	%
Loans receivable and loans held-for-sale ^{(2) (3) (4)}		11,537,770			168,945		5.94				11,288,646			168,167		5.91				8,209,014			115,883		5.73
Federal funds sold and interest-
bearing deposits with banks		264,232			2,387		3.66				425,840			4,249		3.96				229,491			2,466		4.36
Restricted investment in bank stock		51,608			935		7.35				49,174			936		7.55				40,334			889		8.94
Total interest-earning assets		13,160,794			185,569		5.72				13,093,053			187,506		5.68				9,224,712			125,613		5.52
Allowance for loan losses		(154,481	)								(158,576	)								(84,027	)
Noninterest-earning assets		993,268									1,028,661									607,920
Total assets	$	13,999,581								$	13,963,138								$	9,748,605

Interest-bearing liabilities:
Money market deposits		2,903,419			20,146		2.81				2,919,230			21,882		2.97				1,572,287			11,287		2.91
Savings deposits		1,014,568			6,304		2.52				1,012,567			7,233		2.83				656,789			5,227		3.23
Time deposits		2,901,327			26,713		3.73				2,946,459			28,520		3.84				2,480,990			25,154		4.11
Other interest-bearing deposits		2,078,500			12,519		2.44				1,975,750			13,219		2.65				1,659,055			12,324		3.01
Total interest-bearing deposits		8,897,814			65,682		2.99				8,854,006			70,854		3.17				6,369,121			53,992		3.44

Borrowings		833,551			5,513		2.68				781,388			4,582		2.33				686,391			3,725		2.20
Subordinated debentures		201,928			4,385		8.81				201,741			4,294		8.44				79,988			1,298		6.58
Finance lease		921			13		5.72				995			15		5.98				1,210			18		6.03
Total interest-bearing liabilities		9,934,214			75,593		3.09				9,838,130			79,745		3.22				7,136,710			59,033		3.35

Noninterest-bearing demand deposits		2,384,883									2,473,596									1,305,722
Other liabilities		85,785									93,046									51,800
Total noninterest-bearing liabilities		2,470,668									2,566,642									1,357,522
Stockholders' equity		1,594,699									1,558,366									1,254,373
Total liabilities and stockholders' equity	$	13,999,581								$	13,963,138								$	9,748,605

Net interest income (tax equivalent basis)					109,976									107,761									66,580
Net interest spread ⁽⁵⁾							2.63	%								2.46	%								2.17	%

Net interest margin ⁽⁶⁾							3.39	%								3.27	%								2.93	%

Tax equivalent adjustment					(1,172	)								(1,166	)								(824	)
Net interest income				$	108,804								$	106,595								$	65,756

⁽¹⁾ Average balances are calculated on amortized cost.
⁽²⁾ Interest income is presented on a tax equivalent basis using 21% federal tax rate.
⁽³⁾Includes loan fee income.
⁽⁴⁾ Loans include nonaccrual loans.
⁽⁵⁾ Represents difference between the average yield on interest-earning assets and the average cost of interest-bearing
liabilities and is presented on a tax equivalent basis.
⁽⁶⁾ Represents net interest income on a tax equivalent basis divided by average total interest-earning assets.
⁽⁷⁾ Rates are annualized.

ConnectOne Bancorp, Inc. Reports First Quarter 2026 Results