ConnectOne Announces $750 Million Loan Sale and Strong Q3 2026 Financial Results
During its third-quarter 2026 earnings call, ConnectOne (CNOB) announced a definitive agreement to sell a $750 million pool of performing non-relationship multifamily loans. This strategic move is designed to improve balance sheet liquidity and significantly reduce the bank's exposure to rent-regulated commercial real estate assets, bringing that specific exposure down to just 2% of total loans. The company reported strong operational metrics, including an operating efficiency ratio of 41% and an operating return on tangible common equity exceeding 15%. Management highlighted that higher interest rates have acted as a tailwind, with over $1 billion in loans repricing at higher rates year-to-date, contributing to net interest margin expansion. Looking forward, the bank aims for mid-single-digit loan growth while maintaining strict pricing discipline.
Tickers: $CNOB
Topics: balance sheet liquidity commercial real estate exposure earnings call loan sale net interest margin