ConnectOne Bancorp Reports Strong Q2 Earnings Amid Margin Expansion
ConnectOne Bancorp (NASDAQ:CNOB) reported stronger-than-expected second-quarter earnings for 2026, with net income rising to $40.2 million or $0.80 per share. The company attributed the improvement to continued margin expansion, deposit growth, and benefits from its Long Island acquisition completed over a year ago. Net interest margin widened for the seventh consecutive quarter to 3.42%, driven by loan repricing activity. Management expects further margin expansion in the remainder of 2026 despite rising deposit costs. Loan balances grew at an annualized rate of about 5% on period-end basis, while average loans increased at a faster pace. Credit quality was impacted by one rent-stabilized multifamily loan relationship that led to a $13.8 million charge-off and higher non-performing assets. However, management emphasized the issue is isolated and broader portfolio trends remain stable.
Tickers: $CNOB
Topics: banking financial_performance loan_growth net_interest_margin