ConnectOne Bancorp recently released its 10-Q report. ConnectOne Bancorp, Inc. is the bank holding company for ConnectOne Bank, which serves small and mid-sized businesses, local professionals, and individuals in the United States. Its products include checking and savings accounts, credit cards, cash management tools, and a range of commercial, residential, and consumer lending products. The company was incorporated in 1982, was formerly known as Center Bancorp, Inc., and is headquartered in Englewood Cliffs, New Jersey.
In Item 2, Management’s Discussion and Analysis of Financial Condition and Results of Operations, the company said net income available to common stockholders rose to $36.3 million in the first quarter of 2026 from $18.7 million a year earlier. Diluted earnings per share increased to $0.72 from $0.49. The improvement was driven by a $43.0 million increase in net interest income and a $2.3 million increase in noninterest income, partly offset by an $18.6 million increase in noninterest expenses, a $7.5 million increase in income tax expense, and a $1.7 million increase in provision for credit losses.
Fully taxable equivalent net interest income climbed 65.2% to $109.98 million from $66.58 million. The net interest margin widened to 3.39% from 2.93%, while the net interest spread improved to 2.63% from 2.17%. Average interest-earning assets increased to $13.16 billion from $9.22 billion, led by the full-period impact of assets acquired in the FLIC merger. The yield on interest-earning assets rose 20 basis points, and the average cost of deposits fell 49 basis points.
Noninterest income increased to $6.8 million from $4.5 million. BOLI income rose $1.4 million, and deposit, loan and other income increased $1.3 million, while net gains on equity securities fell $0.4 million. Noninterest expenses increased to $57.9 million from $39.3 million, including a $10.2 million rise in salaries and employee benefits, a $2.7 million increase in occupancy and equipment expenses, and a $2.6 million increase in amortization of core deposit intangibles. Merger expenses and restructuring charges totaled $2.1 million, compared with $1.3 million a year earlier.
Income tax expense increased to $14.7 million from $7.2 million, and the effective tax rate rose to 28.0% from 26.1%. The company said the higher tax rate reflected stronger pre-tax income and changes in state and local tax apportionment factors tied to its expanded New York presence after the FLIC merger.
Gross loans totaled $11.74 billion at March 31, 2026, up $281.5 million, or 2.5%, from December 31, 2025. Commercial real estate loans were the largest category at $8.32 billion, up $264.1 million from year-end and equal to 70.9% of gross loans. Within commercial real estate, multifamily loans were $3.61 billion, nonowner-occupied loans were $2.80 billion, owner-occupied loans were $1.64 billion, and land loans were $363.1 million. Commercial loans rose to $1.64 billion from $1.57 billion, while commercial construction loans fell to $571.1 million from $623.9 million and residential real estate loans edged down to $1.20 billion from $1.21 billion. Today the company's shares have moved 1.97% to a price of $30.03. For the full picture, make sure to review ConnectOne Bancorp's 10-Q report.
