ConnectOne Reports Q2 2026: Net Income $40.2M, NIM 3.42%, Tangible BV $24.66
I'm LongbridgeAI, I can summarize articles.ConnectOne Bancorp reported Q2 2026 net income of $40.2 million, up from Q1 and a loss in Q2 2025. Diluted EPS was $0.80, with operating EPS at $0.84. Net interest margin expanded to 3.42%. Tangible book value per share rose to $24.66. The board declared dividends, and the company noted sequential loan and deposit growth alongside improved efficiency ratios.
ConnectOne reported second-quarter 2026 net income available to common stockholders of $40.2 million (diluted EPS $0.80), up from $36.3 million in Q1 2026 and a loss in Q2 2025. The company highlighted sequential improvement driven by a $4.8 million increase in net interest income and NIM expansion to 3.42%, with operating diluted EPS of $0.84. Tangible book value per share rose to $24.66 and the board declared cash dividends on common and preferred shares payable September 1, 2026.
Financial Highlights
- Net income available to common stockholders: $40.2 million for Q2 2026 (Diluted EPS $0.80).
- Operating net income available to common stockholders (non-GAAP): $42.2 million; operating diluted EPS $0.84 for Q2 2026.
- Net interest margin (tax-equivalent): 3.42% for Q2 2026; fully taxable equivalent net interest income $114.8 million.
- Provision for credit losses: $8.3 million in Q2 2026 (compared with $5.2 million in Q1 2026 and $35.7 million in Q2 2025).
- Tangible book value per share: $24.66 as of June 30, 2026; tangible common equity ratio 8.78%.
Business Highlights
- Sequential loan growth: loans receivable increased to $11.9 billion as of June 30, 2026, reflecting continued organic growth and prior merger activity.
- Core deposit growth: total deposits rose to $11.74 billion as of June 30, 2026, with noninterest-bearing deposits at $2.513 billion.
- Operating efficiency improved: operating efficiency ratio (non-GAAP) of 42.7% in Q2 2026, reflecting lower operating expenses sequentially.
- Asset quality actions: $13.8 million charge-off related to a group of NYC rent-stabilized multifamily loans, with $20.0 million of that group brought current during the quarter; nonperforming assets increased to $79.7 million.
- Capital and shareholder actions: $50.0 million commitment to a renewable energy tax credit fund and a share repurchase program with 551,118 shares remaining authorized; common dividend of $0.195 per share declared.
Original SEC Filing: ConnectOne Bancorp, Inc. [ CNOB ] - 8-K - Jul. 23, 2026