ConnectOne Bancorp Reports $40.2 Million Net Income in Latest Quarter

ConnectOne Bancorp, Inc. reported significant financial improvements in its latest quarterly results, with net income available to common stockholders reaching $40.2 million for the three months ended June 30, 2026, compared to a loss of $21.8 million in the same period last year. This turnaround is reflected in a diluted earnings per share of $0.80, up from a loss of $0.52 in the prior year. The increase in profitability was driven by a $34.8 million rise in net interest income, a $27.4 million reduction in the provision for credit losses, and a $2.7 million increase in noninterest income, despite a $21.2 million increase in income tax expense.

For the six months ended June 30, 2026, net income available to common stockholders was $76.5 million, a substantial increase from a loss of $3.1 million in the same period of 2025. The company’s diluted earnings per share for this period was $1.51, compared to a loss of $0.08 in the previous year. The growth in net income was attributed to a $77.8 million increase in net interest income and a $25.7 million decrease in the provision for credit losses, which was partially offset by a $28.7 million increase in income tax expense.

ConnectOne Bancorp's total assets increased to $14.4 billion as of June 30, 2026, up from $14.0 billion at the end of 2025. The company’s loan portfolio also grew, with gross loans totaling $11.9 billion, a 3.6% increase from $11.5 billion at the end of the previous year. This growth was primarily driven by an increase in the commercial real estate segment, reflecting ongoing lending activity within the company’s expanded market footprint following its merger with The First of Long Island Corporation (FLIC).

The company’s total deposits rose to $11.7 billion, a 4.4% increase from $11.2 billion at the end of 2025. This growth was largely due to a $0.4 billion increase in demand, interest-bearing, and NOW deposits, as well as a $0.1 billion increase in time deposits. The increase in deposits was attributed to the full quarter of combined operations from the FLIC merger, which significantly expanded the company’s deposit base.

Looking ahead, ConnectOne Bancorp anticipates continued growth driven by its expanded operations and market presence. The company has committed to investing up to $50 million in a renewable energy tax equity fund, which is expected to generate economic returns and tax benefits. Management remains optimistic about the company’s ability to navigate market conditions and capitalize on growth opportunities while maintaining a strong capital position, with a tangible common equity ratio of 8.78% as of June 30, 2026.