New Jersey lender posted diluted EPS of $0.80 for the quarter ended June 30, 2026, with a 3.42% net interest margin, higher tangible book value and lower merger-related costs.
ConnectOne Bancorp reported second-quarter 2026 net income available to common stockholders of $40.2 million, or $0.80 per diluted share, up from $36.3 million, or $0.72 per diluted share, in the first quarter and reversing a loss of $21.8 million, or $(0.52) per diluted share, a year earlier. The Englewood Cliffs, New Jersey-based lender said operating net income available to common stockholders was $42.2 million, or $0.84 per diluted share, while return on average assets improved to 1.17% and return on average tangible common equity rose to 13.79%. The company said the linked-quarter improvement was driven by a $4.8 million increase in net interest income, a $1.1 million rise in noninterest income and a $2.5 million decline in noninterest expense, partly offset by a $3.1 million increase in provision for credit losses and a $1.5 million increase in income tax expense. Fully taxable equivalent net interest income rose to $114.8 million from $110.0 million in the first quarter as net interest margin widened 3 basis points to 3.42%, marking the seventh consecutive quarterly expansion. Average interest-earning assets increased 2.2% from the prior quarter, while loans and core deposits grew at annualized rates of about 5% and 8%, respectively. Asset quality weakened in the quarter because of stress in a previously disclosed group of New York City loans secured by multiple rent-stabilized multi-family buildings. The provision for credit losses increased to $8.3 million from $5.2 million in the first quarter, driven primarily by a $13.8 million charge-off tied to that loan group, partly offset by a $9.2 million release of multifamily qualitative reserves. Nonperforming assets rose to $79.7 million, or 0.55% of total assets, from $41.6 million at March 31, while nonaccrual loans increased to 0.67% of loans receivable from 0.35%. Balance-sheet growth remained positive. Total assets were $14.4 billion at June 30, 2026, loans receivable were $11.9 billion and deposits were $11.7 billion, all up from year-end 2025. Total stockholders’ equity increased to $1.627 billion from $1.573 billion at December 31, 2025, and tangible book value per share rose to $24.66 from $23.52. ConnectOne declared a common dividend of $0.195 per share and a preferred dividend of $0.328125 per depositary share, both payable on September 1, 2026, to holders of record on August 14, 2026.