# EDGAR Filing Document

**Accession Number:** 0000712771
**File Stem:** 0001437749-26-013080
**Filing Date:** 2026-4
**Character Count:** 51457
**Document Hash:** d02f5e02b4c78ab6629f22ca33f10b9e
**Contains OCR:** False
**Source Format:** 

## Filing Content

## Filing Summary
**0001437749-26-013080.hdr.sgml**: 20260423

**ACCESSION NUMBER**: 0001437749-26-013080

**CONFORMED SUBMISSION TYPE**: 8-K

**PUBLIC DOCUMENT COUNT**: 14

**CONFORMED PERIOD OF REPORT**: 20260423

**ITEM INFORMATION**: Results of Operations and Financial Condition

**ITEM INFORMATION**: Financial Statements and Exhibits

**FILED AS OF DATE**: 20260423

**DATE AS OF CHANGE**: 20260423

**FILER**: 

**COMPANY DATA:**
- **COMPANY CONFORMED NAME:** ConnectOne Bancorp, Inc.
- **CENTRAL INDEX KEY:** 0000712771
- **STANDARD INDUSTRIAL CLASSIFICATION:** STATE COMMERCIAL BANKS [6022]
- **ORGANIZATION NAME:** 02 Finance
- **EIN:** 521273725
- **STATE OF INCORPORATION:** NJ
- **FISCAL YEAR END:** 1231

**FILING VALUES:**
- **FORM TYPE:** 8-K
- **SEC ACT:** 1934 Act
- **SEC FILE NUMBER:** 001-40751
- **FILM NUMBER:** 26885548

**BUSINESS ADDRESS:**
- **STREET 1:** 301 SYLVAN AVENUE
- **CITY:** ENGLEWOOD CLIFFS
- **STATE:** NJ
- **ZIP:** 07632
- **BUSINESS PHONE:** 2018168900

**MAIL ADDRESS:**
- **STREET 1:** 301 SYLVAN AVENUE
- **CITY:** ENGLEWOOD CLIFFS
- **STATE:** NJ
- **ZIP:** 07632

**FORMER COMPANY:**
- **FORMER CONFORMED NAME:** CENTER BANCORP INC
- **DATE OF NAME CHANGE:** 19920703

?xml version='1.0' encoding='ASCII'? cnob20260224c_8k.htm

**UNITED STATES**

**SECURITIES AND EXCHANGE COMMISSION**

**Washington, D.C. 20549**

_________________

**FORM 8-K**

_________________

**CURRENT REPORT**

**Pursuant to Section 13 or 15(d)**

 **of the Securities Exchange Act of 1934**

&nbsp;&nbsp;&nbsp;&nbsp;**April 23, 2026**

_______________________________

**CONNECTONE BANCORP, INC.**

(Exact name of registrant as specified in its charter)

_______________________________

---

| | | |
|:---|:---|:---|
| **New Jersey** | **001-40751** | **52-1273725** |
| (State or Other Jurisdiction of Incorporation) | (Commission File Number) | (I.R.S. Employer Identification No.) |

---

**301 Sylvan Avenue**

**Englewood Cliffs**,**New Jersey07632**

(Address of Principal Executive Offices) (Zip Code)

**(**844**) **266-2548**

(Registrant's telephone number, including area code)

**N/A**

(Former name or former address, if changed since last report)

_______________________________

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

☐ Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

☐ Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

☐ Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

☐ Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Securities registered pursuant to Section 12(b) of the Act:

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| | | |
|:---|:---|:---|
| Title of each class | Trading Symbol(s) | Name of each exchange on which registered |
| Common stock | CNOB | NASDAQ |
| Depositary Shares (each representing a 1/40th interest in a share of 5.25% Series A Non-Cumulative, perpetual preferred stock) | CNOBP | NASDAQ |

---

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).

Emerging growth company ☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

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&nbsp;&nbsp;&nbsp;&nbsp;**Item 2.02. Results of Operations and Financial Condition.**

On April 23, 2026, the Registrant issued a press release, a copy of which is attached hereto as Exhibit 99.1 and is incorporated herein by reference.

**Item 9.01. Financial Statements and Exhibits.**

---

| | |
|:---|:---|
| 99.1 | [Press Release dated April 23, 2026](ex_924680.htm) |
| 104 | Cover Page Interactive Data File (embedded within the Inline XBRL document) |

---

------

**SIGNATURE**

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

---

| | | |
|:---|:---|:---|
|  | **ConnectOne Bancorp, Inc.** | **ConnectOne Bancorp, Inc.** |
| Date: April 23, 2026 | By:  | <u>/s/ William S. Burns</u> |
|  |  | William S. Burns |
|  |  | Senior Executive Vice President and Chief Financial Officer |

---

## Ex-99

**Exhibit 99.1**

![logo.jpg](logo.jpg)

**CONNECTONE BANCORP, INC.** 

**REPORTS FIRST QUARTER 2026 RESULTS**

<br> NET INTEREST MARGIN WIDENS BY 12 BASIS POINTS; TREND CONFIRMED

10% ANNUALIZED LOAN GROWTH

OPERATING PERFORMANCE ACCELERATES

TANGIBLE BOOK VALUE PER SHARE INCREASES

8.3% INCREASE IN COMMON DIVIDEND PER SHARE DECLARED

Englewood Cliffs, N.J., April 23, 2026 (GLOBE NEWSWIRE) – ConnectOne Bancorp, Inc. (Nasdaq: CNOB) (the "Company" or "ConnectOne"), parent company of ConnectOne Bank (the "Bank"), today reported net income available to common stockholders of $36.3 million for the first quarter of 2026 compared with $38.0 million for the fourth quarter of 2025 and $18.7 million for the first quarter of 2025. Diluted earnings per share were $0.72 for the first quarter of 2026 compared with $0.75 for the fourth quarter of 2025 and $0.49 for the first quarter of 2025. Return on average assets was 1.10%, 1.12% and 0.84% for the three months ended March 31, 2026, December 31, 2025 and March 31, 2025, respectively. Return on average tangible common equity was 12.89%, 13.66% and 8.25% for the three months ended March 31, 2026, December 31, 2025 and March 31, 2025, respectively.

Pre-provision net operating revenue ("Operating PPNR") as a percentage of average assets was 1.81%, 1.75% and 1.34% for the quarters ending March 31, 2026, December 31, 2025 and March 31, 2025, respectively. The sequential increase in Operating PPNR was primarily due to a $2.2 million increase in net interest income, partially offset by a $0.9 million increase in operating expenses. Operating net income available to common stockholders was $39.6 million for the first quarter of 2026, $42.0 million for the fourth quarter of 2025 and $19.7 million for the first quarter of 2025. Operating diluted earnings per share were $0.79 for the first quarter of 2026, $0.83 for the fourth quarter of 2025 and $0.51 for the first quarter of 2025. Operating return on average assets was 1.19%, 1.24% and 0.88% for the three months ended March 31, 2026, December 31, 2025 and March 31, 2025, respectively. Operating return on average tangible common equity was 13.35%, 14.27% and 8.59% for the three months ended March 31, 2026, December 31, 2025 and March 31, 2025, respectively. See supplemental tables for a complete reconciliation of GAAP earnings to operating earnings, and other non-GAAP measures.

The decrease in net income available to common stockholders during the first quarter of 2026 when compared to the fourth quarter of 2025 was primarily due to a $2.9 million increase in the provision for credit losses, a $0.9 million increase in noninterest expenses and a $0.9 million increase in income tax expense, which were partially offset by a $2.2 million increase in net interest income and a $0.8 million increase in noninterest income. The first quarter of 2026 included restructuring charges related to the merger with the First of Long Island Corporation ("FLIC") of $2.0 million reflecting our ongoing commitment to streamlining operations and enhancing organizational efficiency. The increase in net income available to common stockholders and diluted earnings per share during the first quarter of 2026 when compared to the first quarter of 2025 was primarily due to a $43.0 million increase in net interest income and a $2.3 million increase in noninterest income, which was partially offset by an increase in noninterest expense of $18.6 million and an increase in income tax expense of $7.5 million. The variances from the first quarter of 2026 to the first quarter of 2025 were primarily due to the merger with FLIC.

"ConnectOne began 2026 with robust momentum, positioning us for what we expect to be a strong year," commented Frank Sorrentino, ConnectOne's Chairman and Chief Executive Officer. "Loans and deposits both grew sequentially at an annualized rate of approximately 10%, while our net interest margin expanded by 12 basis points. Accelerating portfolio loan yields are expected to support continued net interest margin expansion in the quarters ahead, even without further rate cuts."

"Expenses remain well-controlled as we continue to leverage merger synergies and drive additional productivity gains through increasing use of AI workflow across the organization." Mr. Sorrentino added, "During the first quarter, our strong retained earnings supported loan growth, share repurchases, and a 1.7% increase in tangible book value per share; we are now approximately one quarter away from returning to our pre-merger tangible book value per share of $24.16."

"Our credit quality remained solid this quarter. Although 30-59 day delinquencies increased due to one isolated credit relationship, net charge-offs (excluding PCD loans) declined to just 8 basis points annualized, a recent low. The nonaccrual loan ratio also decreased, while criticized and classified asset metrics remained at historically low levels, underscoring our continued portfolio management strength."

------

"Subsequent to quarter-end, noninterest income continued to build momentum, driven by accelerating SBA loan sale activity. We generated an additional $1.1 million in gains in April, and the pipeline remains robust." Mr. Sorrentino concluded, "Looking ahead to the remainder of the year, we're executing against our strategic priorities and remain well positioned to deliver long-term value for our shareholders in 2026 and beyond."

**Dividend Declarations**

The Company announced that its Board of Directors declared an increased quarterly cash dividend on its common stock and declared a cash dividend on its outstanding preferred stock. A cash dividend on common stock of $0.195 per share, reflecting an increase of $0.015, or 8.3%, will be paid on June 1, 2026, to common stockholders of record on May 15, 2026. A dividend of $0.328125 per depositary share, representing a 1/40th interest in a share of the Company's 5.25% Fixed Rate Reset Non-Cumulative Perpetual Preferred Stock, Series A, will also be paid on June 1, 2026 to holders of record on May 15, 2026.

**Operating Results**

Fully taxable equivalent net interest income for the first quarter of 2026 was $110.0 million, an increase of $2.2 million, or 2.1%, from the fourth quarter of 2025, largely due to a 12 basis-point widening of the net interest margin to 3.39% from 3.27%. The margin benefited from an increase in the yield on interest-earning assets, primarily due to loan repricing, combined with a 12 basis-point decrease in the average costs of deposits, including noninterest-bearing deposits, and partially offset by an increased cost in borrowed funds.

Fully taxable equivalent net interest income for the first quarter of 2026 increased $43.4 million, or 65.2%, from the first quarter of 2025, due to a 46 basis-point widening of the net interest margin to 3.39% from 2.93%, and a 42.7% increase in average interest-earning assets. The increase in average interest-earning assets was primarily due to the merger with FLIC. The margin benefited from a 20 basis-point increase in the yield on interest-earning assets and a 49 basis-point decrease in the average costs of deposits, including noninterest-bearing deposits.

Noninterest income was $6.8 million in the first quarter of 2026, $6.0 million in the fourth quarter of 2025 and $4.5 million in the first quarter of 2025. The increase compared to the fourth quarter of 2025 was primarily due to a $1.0 million increase in net gains (losses) on equity securities. The increase compared to the first quarter of 2025 was primarily due to a $1.4 million increase in BOLI income and a $1.3 million increase in deposit, loan and other income, which was partially offset by a $0.4 million decrease in net gains (losses) on equity securities. The year-over-year increases in BOLI income and deposit, loan and other income were primarily due to the merger with FLIC. Extending this positive momentum into the second quarter, the Company realized an additional $1.1 million in SBA loan sale gains in April 2026.

Noninterest expenses were $57.9 million for the first quarter of 2026, $56.9 million for the fourth quarter of 2025 and $39.3 million for the first quarter of 2025. Excluding merger expenses and restructuring charges and branch closing expenses, noninterest expenses totaled $55.7 million in the first quarter of 2026, $55.2 million in the fourth quarter of 2025 and $38.0 million in the first quarter of 2025. The increase of $0.6 million during the first quarter of 2026 when compared to the fourth quarter of 2025 was primarily due to a $1.6 million increase in salaries and employee benefits, which was partially offset by a $0.4 million decrease in FDIC insurance expense and a $0.4 million decrease in amortization of core deposit intangible. The $17.8 million increase in noninterest expenses for the first quarter of 2026 when compared to the first quarter of 2025 was primarily due to a $10.2 million increase in salaries and employee benefits, a $2.7 million increase in occupancy and equipment expenses, a $2.6 million increase in amortization of core deposit intangibles, a $0.8 million increase in other expenses, a $0.7 million increase in professional and consulting expense, and a $0.6 million increase in information technology and communication expenses. The variances from the first quarter of 2026 to the first quarter of 2025 were primarily due to the merger with FLIC.

Income tax expense was $14.7 million for the first quarter of 2026, $13.9 million for the fourth quarter of 2025 and $7.2 million for the first quarter of 2025. The effective tax rates were 28.0%, 26.0% and 26.1% for the first quarter of 2026, fourth quarter of 2025 and first quarter of 2025, respectively. The increase in effective rates when compared to 2025 was primarily due to state and local apportionment factors associated with the FLIC merger.

**Asset Quality**

The provision for credit losses was $5.2 million for the first quarter of 2026, $2.3 million for the fourth quarter of 2025 and $3.5 million for the first quarter of 2025. In each of the quarters presented, the provision for credit losses reflected net portfolio growth, charges related to individually evaluated loans, and changing macroeconomic forecasts and conditions. The current quarter's provision was driven by higher loan growth and increased qualitative factors, which were partially offset by improved loss drivers within our quantitative CECL model reflecting improved economic forecasts.

------

Nonperforming assets, which includes nonaccrual loans and other real estate owned (the Bank had no other real estate owned during the periods reported), were $41.6 million as of March 31, 2026, $45.9 million as of December 31, 2025 and $49.9 million as of March 31, 2025. Nonperforming assets as a percentage of total assets improved to 0.29% as of March 31, 2026, versus 0.33% as of December 31, 2025 and 0.51% as of March 31, 2025. The ratio of nonaccrual loans to loans receivable also improved to 0.35%, as of March 31, 2026, versus 0.40% and 0.61%, at December 31, 2025 and March 31, 2025, respectively. The annualized net loan charge-offs ratio (excluding PCD loans) was 0.08% for the first quarter of 2026, 0.17% for the fourth quarter of 2025 and 0.17% for the first quarter of 2025.

The allowance for credit losses ("ACL") represented 1.30%, 1.35% and 1.00% of loans receivable as of March 31, 2026, December 31, 2025 and March 31, 2025, respectively. The ACL decreased $1.2 million to $153.1 million as of March 31, 2026, compared to $154.3 million as of December 31, 2025. The ACL as a percentage of nonaccrual loans was 368.1% as of March 31, 2026, 336.1% as of December 31, 2025 and 165.3% as of March 31, 2025.

Criticized and classified loans as a percentage of loans receivable improved to 2.26% as of March 31, 2026, down from 2.49% as of December 31, 2025 and from 2.79% as of March 31, 2025. Loans past due 30-59 days were 0.81% of loans receivable as of March 31, 2026, 0.19% as of December 31, 2025 and 0.18% as of March 31, 2025. This rise is predominantly due to an interrelated series of credits totaling $63.8 million secured by 19 multifamily NYC rent-regulated properties. We are working with our client to resolve these credits; however, the resulting financial impact cannot be determined at this time.

The Bank maintains a solid reserve position, particularly within its rent-regulated multifamily portfolio, which includes significant credit and fair value marks applicable to the portfolio acquired from FLIC, in addition to qualitative ACL allocations applicable to its legacy portfolio. The following table provides additional information on the Bank's New York City ("NYC") rent-regulated portfolio as of March 31, 2026:

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| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| ($millions) | **Portfolio Composition** | **% of Total Loans** | **Unpaid Principal Balance** | **Offsets <sup>(3)</sup>** | **Offset %** | **Avg. Loan Size** |
| Acquired Portfolio <sup>(1)</sup> | 61.0% | 3.5% | $412.5 | $(66.1) | 16.0% | $2.4 |
| Legacy ConnectOne <sup>(2)</sup> | 39.0 | 2.2 | 263.4 | (14.8) | 5.6 | 2.9 |
| Total Rent-Regulated | 100.0% | 5.7% | $675.9 | $(80.9) | 12.0 | 2.6 |

---

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| |
|:---|
| Note: Rent-regulated includes loans secured by multifamily properties with 50% or greater units subject to NYC rent-stabilization guidelines. |
| <sup>(1)</sup> Portfolio acquired in merger with FLIC on June 1, 2025. |
| <sup>(2)</sup> Loans originated by the Bank. |
| <sup>(3)</sup> Offsets include (i) general reserves plus (ii) for the Acquired Portfolio, the applicable nonaccretable and accretable purchase accounting loan marks and (iii) for Legacy ConnectOne, an additional qualitative reserve applicable to rent-regulated multifamily. |

---

**Selected Balance Sheet Items**

The Company's total assets were $14.2 billion as of March 31, 2026, compared to $14.0 billion as of December 31, 2025. Loans receivable were $11.7 billion as of March 31, 2026 and $11.5 billion as of December 31, 2025. Total deposits were $11.5 billion as of March 31, 2026 and $11.2 billion as of December 31, 2025.

The Company's total stockholders' equity increased to $1.592 billion as of March 31, 2026 from $1.573 billion as of December 31, 2025. Retained earnings increased $27.3 million, partially offset by an increase in the accumulated other comprehensive loss of $6.2 million. As of March 31, 2026, the Company's tangible common equity ratio and tangible book value per share were 8.64% and $23.93, respectively, compared to 8.62% and $23.52, respectively, as of December 31, 2025. Total goodwill and other intangible assets were $277.3 million as of March 31, 2026, and $280.2 million as of December 31, 2025.

------

**Share Repurchase Program**

During the first quarter of 2026, the Company repurchased 90,000 shares of common stock at an average price of $26.21, leaving 551,118 shares authorized for repurchase under the current Board approved repurchase program. The Company may repurchase shares from time to time in the open market, in privately negotiated stock purchases or pursuant to any trading plan that may be adopted in accordance with Rule 10b5-1 of the Securities and Exchange Commission and applicable federal securities laws. The share repurchase plan does not obligate the Company to acquire any particular amount of common stock and the plan may be modified or suspended at any time at the Company's discretion.

**Use of Non-GAAP Financial Measures**

In addition to the results presented in accordance with Generally Accepted Accounting Principles ("GAAP"), ConnectOne routinely supplements its evaluation with an analysis of certain non-GAAP measures. ConnectOne believes these non-GAAP financial measures, in addition to the related GAAP measures, provide meaningful information to investors in understanding our operating performance and trends. These non-GAAP measures have inherent limitations and are not required to be uniformly applied and are not audited. They should not be considered in isolation or as a substitute for an analysis of results reported under GAAP. These non-GAAP measures may not be comparable to similarly titled measures reported by other companies. Reconciliations of non-GAAP financial measures disclosed in this earnings release to the comparable GAAP measures are provided in the accompanying tables.

**First Quarter 2026 Results Conference Call**

Management will also host a conference call and audio webcast at 10:00 a.m. ET on April 23, 2026, to review the Company's financial performance and operating results. The conference call dial-in number is 1 (646) 307-1963, access code 8368502. Please dial in at least five minutes before the start of the call to register. An audio webcast of the conference call will be available to the public, on a listen-only basis, via the "Investor Relations" link on the Company's website <u>https://www.ConnectOneBank.com</u> or at <u>http://ir.connectonebank.com</u>.

A replay of the conference call will be available beginning at approximately 1:00 p.m. ET on Thursday, April 23, 2026 and ending on Thursday, April 30, 2026, by dialing 1 (609) 800-9909, access code 8368502. An online archive of the webcast will be available following the completion of the conference call at <u>https://www.ConnectOneBank.com</u> or at <u>http://ir.connectonebank.com</u>.

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**About ConnectOne Bancorp, Inc.**

ConnectOne Bancorp, Inc., is a modern financial services company that operates, through its subsidiary, ConnectOne Bank, and the Bank's fintech subsidiary, BoeFly, Inc. ConnectOne Bank is a high-performing commercial bank offering a full suite of banking & lending products and services that focus on small to middle-market businesses. BoeFly, Inc. is a fintech marketplace that connects borrowers in the franchise space with funding solutions through a network of partner banks. ConnectOne Bancorp, Inc. is traded on the Nasdaq Global Market under the trading symbol "CNOB," and information about ConnectOne may be found at <u>https://www.connectonebank.com</u>.

**This news release contains certain forward-looking statements which are based on certain assumptions and describe future plans, strategies, and expectations of the Company. These forward-looking statements are generally identified by use of the words "believe," "expect," "intend," "anticipate," "estimate," "project," or similar expressions. The Company's ability to predict results or the actual effect of future plans or strategies is inherently uncertain. Factors which could have a material adverse effect on the operations of the Company and its subsidiaries include, but are not limited to, those factors set forth in Item 1A** – **Risk Factors of the Company**'**s Annual Report on Form 10-K, as filed with the U.S. Securities and Exchange Commission, as supplemented by the Company**'**s subsequent filings with the U.S. Securities and Exchange Commission, and changes in interest rates, general economic conditions, legislative/regulatory changes, monetary and fiscal policies of the U.S. Government, including policies of the U.S. Treasury and the Federal Reserve Board, the quality or composition of the loan or investment portfolios, demand for loan products, deposit flows, competition, demand for financial services in the Company's market area, changes in accounting principles and guidelines and the impact of the health emergencies and natural disasters on the Company, its employees and operations, and its customers. These risks and uncertainties should be considered in evaluating forward-looking statements and undue reliance should not be placed on such statements. The Company does not undertake, and specifically disclaims any obligation, to publicly release the result of any revisions which may be made to any forward-looking statements to reflect events or circumstances after the date of such statements or to reflect the occurrence of anticipated or unanticipated events.** 

**<u>Investor Contact</u>:**

**William S. Burns**

**Senior Executive Vice President & CFO**

**201.816.4474; <u>bill.burns@cnob.com</u>**

**<u>Media Contact</u>:**

**Shannan Weeks**

**MikeWorldWide**

**732.299.7890; <u>sweeks@mww.com</u>**

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| |
|:---|
| **CONNECTONE BANCORP, INC. AND SUBSIDIARIES** |
| **CONSOLIDATED CONDENSED STATEMENTS OF FINANCIAL CONDITION** |
| **(in thousands)** |

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| | | | |
|:---|:---|:---|:---|
|  | **March 31,** | **December 31,** | **March 31,** |
|  | **2026** | **2025** | **2025** |
|  | **(unaudited)** |  | **(unaudited)** |
| **ASSETS** |  |  |  |
| Cash and due from banks | $39472 | $92406 | $49759 |
| Interest-bearing deposits with banks | 304999 | 288489 | 242844 |
| Cash and cash equivalents | 344471 | 380895 | 292603 |
| Investment securities | 1196384 | 1250938 | 636806 |
| Equity securities | 19422 | 19287 | 18859 |
| Loans held-for-sale | 10222 | 391 | 202 |
| Loans receivable | 11735596 | 11453280 | 8201134 |
| Less: Allowance for credit losses - loans | 153056 | 154305 | 82403 |
| Net loans receivable | 11582540 | 11298975 | 8118731 |
| Investment in restricted stock, at cost | 51464 | 54722 | 37031 |
| Bank premises and equipment, net | 54765 | 55285 | 27624 |
| Accrued interest receivable | 62473 | 60761 | 46740 |
| Bank owned life insurance | 373664 | 370713 | 244651 |
| Right of use operating lease assets | 27960 | 29603 | 13755 |
| Goodwill | 220235 | 220235 | 208372 |
| Core deposit intangibles | 57078 | 59923 | 4360 |
| Other assets | 208883 | 200972 | 109521 |
| **Total assets** | $14209561 | $14002700 | $9759255 |
| **LIABILITIES** |  |  |  |
| Deposits: |  |  |  |
| Noninterest-bearing | $2393938 | $2420397 | $1319196 |
| Interest-bearing | 9119115 | 8820218 | 6448034 |
| Total deposits | 11513053 | 11240615 | 7767230 |
| Borrowings | 827477 | 903489 | 613053 |
| Subordinated debentures, net | 202050 | 201864 | 80071 |
| Operating lease liabilities | 30560 | 32446 | 14737 |
| Other liabilities | 44874 | 50946 | 31225 |
| **Total liabilities** | 12618014 | 12429360 | 8506316 |
| **COMMITMENTS AND CONTINGENCIES** |  |  |  |
| **STOCKHOLDERS' EQUITY** |  |  |  |
| Preferred stock | 110927 | 110927 | 110927 |
| Common stock | 857765 | 857765 | 586946 |
| Additional paid-in capital | 38257 | 38763 | 36007 |
| Retained earnings | 701154 | 673897 | 643265 |
| Treasury stock | (78507) | (76116) | (76116) |
| Accumulated other comprehensive loss | (38049) | (31896) | (48090) |
| **Total stockholders' equity** | 1591547 | 1573340 | 1252939 |
| **Total liabilities and stockholders' equity** | $14209561 | $14002700 | $9759255 |

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| |
|:---|
| **CONNECTONE BANCORP, INC. AND SUBSIDIARIES** |
| **CONSOLIDATED STATEMENTS OF INCOME** |
| **(dollars in thousands, except for per share data)** |

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| | | | |
|:---|:---|:---|:---|
|  | **Three Months Ended** | **Three Months Ended** | **Three Months Ended** |
|  | **03/31/26** | **12/31/25** | **03/31/25** |
| **Interest income** |  |  |  |
| Interest and fees on loans | $168298 | $167532 | $115351 |
| Interest and dividends on investment securities: |  |  |  |
| Taxable | 10799 | 11628 | 4987 |
| Tax-exempt | 1978 | 1995 | 1097 |
| Dividends | 935 | 936 | 889 |
| Interest on federal funds sold and other short-term investments | 2387 | 4249 | 2465 |
| Total interest income | 184397 | 186340 | 124789 |
| **Interest expense** |  |  |  |
| Deposits | 65682 | 70854 | 53992 |
| Borrowings | 9911 | 8891 | 5041 |
| Total interest expense | 75593 | 79745 | 59033 |
| **Net interest income** | 108804 | 106595 | 65756 |
| Provision for credit losses | 5200 | 2300 | 3500 |
| **Net interest income after provision for credit losses** | 103604 | 104295 | 62256 |
| **Noninterest income** |  |  |  |
| Deposit, loan and other income | 3283 | 3289 | 2006 |
| Income on bank owned life insurance | 2951 | 2946 | 1584 |
| Net gains on sale of loans held-for-sale | 427 | 631 | 332 |
| Net gains (losses) on equity securities | 135 | (846) | 529 |
| Total noninterest income | 6796 | 6020 | 4451 |
| **Noninterest expenses** |  |  |  |
| Salaries and employee benefits | 32768 | 31211 | 22578 |
| Occupancy and equipment | 5345 | 5265 | 2680 |
| FDIC insurance | 2000 | 2400 | 1800 |
| Professional and consulting | 3108 | 2908 | 2366 |
| Marketing and advertising | 926 | 974 | 595 |
| Information technology and communications | 5243 | 5366 | 4604 |
| Merger expenses and restructuring charges | 2125 | 498 | 1320 |
| Branch closing expenses |  | 1275 |  |
| Bank owned life insurance restructuring charge |  |  | 327 |
| Amortization of core deposit intangibles | 2845 | 3196 | 279 |
| Other expenses | 3509 | 3853 | 2756 |
| Total noninterest expenses | 57869 | 56946 | 39305 |
| **Income before income tax expense** | 52531 | 53369 | 27402 |
| Income tax expense | 14709 | 13851 | 7160 |
| **Net income** | 37822 | 39518 | 20242 |
| Preferred dividends | 1509 | 1509 | 1509 |
| **Net income available to common stockholders** | $36313 | $38009 | $18733 |
| **Earnings per common share:** |  |  |  |
| Basic | $0.72 | $0.76 | $0.49 |
| Diluted | 0.72 | 0.75 | 0.49 |

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ConnectOne's management believes that the supplemental financial information, including non-GAAP measures provided below, is useful to investors. The non-GAAP measures should not be viewed as a substitute for financial results determined in accordance with GAAP, and are not necessarily comparable to non-GAAP financial measures presented by other companies.

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| |
|:---|
| **CONNECTONE BANCORP, INC.** |
| **SUPPLEMENTAL GAAP AND NON-GAAP FINANCIAL MEASURES** |

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---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
|  | **As of** | **As of** | **As of** | **As of** | **As of** |
|  | **Mar. 31,** | **Dec. 31,** | **Sept. 30,** | **Jun. 30,** | **Mar. 31,** |
|  | **2026** | **2025** | **2025** | **2025** | **2025** |
| **<u>Selected Financial Data</u>** | **(dollars in thousands)** | **(dollars in thousands)** | **(dollars in thousands)** | **(dollars in thousands)** | **(dollars in thousands)** |
| Total assets | $14209561 | $14002700 | $14023585 | $13915738 | $9759255 |
| Loans receivable: |  |  |  |  |  |
| Commercial | 1638836 | 1558436 | 1613421 | 1597590 | 1483392 |
| Commercial real estate | 4750508 | 4625143 | 4310159 | 4285663 | 3356943 |
| Multifamily | 3574336 | 3437080 | 3420465 | 3348308 | 2490256 |
| Commercial construction | 571073 | 623902 | 728615 | 681222 | 617593 |
| Residential | 1202539 | 1210980 | 1233305 | 1254646 | 256555 |
| Consumer | 1801 | 2017 | 2166 | 1709 | 1604 |
| Gross loans | 11739093 | 11457558 | 11308131 | 11169138 | 8206343 |
| Net deferred loan fees | (3497) | (4278) | (4495) | (4661) | (5209) |
| Loans receivable | 11735596 | 11453280 | 11303636 | 11164477 | 8201134 |
| Loans held-for-sale | 10222 | 391 |  | 1027 | 202 |
| Total loans | $11745818 | $11453671 | $11303636 | $11165504 | $8201336 |
| Investment and equity securities | $1215806 | $1270225 | $1272335 | $1246907 | $655665 |
| Goodwill and other intangible assets | 277313 | 280158 | 278730 | 281926 | 212732 |
| Deposits: |  |  |  |  |  |
| Noninterest-bearing demand | $2393938 | $2420397 | $2513102 | $2424529 | $1319196 |
| Time deposits | 3010971 | 2796877 | 2977952 | 3065015 | 2550223 |
| Other interest-bearing deposits | 6108144 | 6023341 | 5878241 | 5788943 | 3897811 |
| Total deposits | $11513053 | $11240615 | $11369295 | $11278487 | $7767230 |
| Borrowings | $827477 | $903489 | $833443 | $783859 | $613053 |
| Subordinated debentures (net of debt issuance costs) | 202050 | 201864 | 201677 | 276500 | 80071 |
| Total stockholders' equity | 1591547 | 1573340 | 1538344 | 1496431 | 1252939 |
| **<u>Quarterly Average Balances</u>** |  |  |  |  |  |
| Total assets | $13999581 | $13963138 | $14050585 | $11108430 | $9748605 |
| Loans receivable: |  |  |  |  |  |
| Commercial | $1579368 | $1597123 | $1583673 | $1486245 | $1488962 |
| Commercial real estate (including multifamily) | 8137515 | 7822943 | 7630195 | 6404302 | 5852342 |
| Commercial construction | 613661 | 646414 | 704170 | 643115 | 610859 |
| Residential | 1204082 | 1221171 | 1241375 | 587118 | 256430 |
| Consumer | 6851 | 5473 | 6747 | 5759 | 5687 |
| Gross loans | 11541477 | 11293124 | 11166160 | 9126539 | 8214280 |
| Net deferred loan fees | (4042) | (4708) | (4418) | (5097) | (5525) |
| Loans receivable | 11537435 | 11288416 | 11161742 | 9121442 | 8208755 |
| Loans held-for-sale | 335 | 230 | 318 | 352 | 259 |
| Total loans | $11537770 | $11288646 | $11162060 | $9121794 | $8209014 |
| Investment and equity securities | $1256147 | $1269275 | $1274000 | $845614 | $655191 |
| Goodwill and other intangible assets | 279158 | 279165 | 280814 | 235848 | 212915 |
| Deposits: |  |  |  |  |  |
| Noninterest-bearing demand | $2384883 | $2473596 | $2486993 | $1680653 | $1305722 |
| Time deposits | 2901327 | 2946459 | 3019848 | 2662411 | 2480990 |
| Other interest-bearing deposits | 5996487 | 5907547 | 5889230 | 4463648 | 3888131 |
| Total deposits | $11282697 | $11327602 | $11396071 | $8806712 | $7674843 |
| Borrowings | $833551 | $781388 | $783994 | $723303 | $686391 |
| Subordinated debentures (net of debt issuance costs) | 201928 | 201741 | 263511 | 170802 | 79988 |
| Total stockholders' equity | 1594699 | 1558366 | 1513892 | 1344254 | 1254373 |

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| | | | | | |
|:---|:---|:---|:---|:---|:---|
|  | **Three Months Ended** | **Three Months Ended** | **Three Months Ended** | **Three Months Ended** | **Three Months Ended** |
|  | **Mar. 31,** | **Dec. 31,** | **Sept. 30,** | **Jun. 30,** | **Mar. 31,** |
|  | **2026** | **2025** | **2025** | **2025** | **2025** |
|  | **(dollars in thousands, except for per share data)** | **(dollars in thousands, except for per share data)** | **(dollars in thousands, except for per share data)** | **(dollars in thousands, except for per share data)** | **(dollars in thousands, except for per share data)** |
| **Net interest income** | $108804 | $106595 | $102017 | $78883 | $65756 |
| Provision for credit losses | 5200 | 2300 | 5500 | 35700 | 3500 |
| Net interest income after provision for credit losses | 103604 | 104295 | 96517 | 43183 | 62256 |
| **Noninterest income** |  |  |  |  |  |
| Deposit, loan and other income | 3283 | 3289 | 3836 | 2570 | 2006 |
| Defined benefit pension plan curtailment gain |  |  | 3501 |  |  |
| Employee retention tax credit |  |  | 6608 |  |  |
| Income on bank owned life insurance | 2951 | 2946 | 2931 | 2087 | 1584 |
| Net gains on sale of loans held-for-sale | 427 | 631 | 859 | 181 | 332 |
| Net gains (losses) on equity securities | 135 | (846) | 1674 | 347 | 529 |
| Total noninterest income | 6796 | 6020 | 19409 | 5185 | 4451 |
| **Noninterest expenses** |  |  |  |  |  |
| Salaries and employee benefits | 32768 | 31211 | 32401 | 25233 | 22578 |
| Occupancy and equipment | 5345 | 5265 | 5122 | 3478 | 2680 |
| FDIC insurance | 2000 | 2400 | 2400 | 2000 | 1800 |
| Professional and consulting | 3108 | 2908 | 2929 | 2598 | 2366 |
| Marketing and advertising | 926 | 974 | 771 | 840 | 595 |
| Information technology and communications | 5243 | 5366 | 5243 | 4792 | 4604 |
| Restructuring and exit charges |  |  | 994 |  |  |
| Merger expenses and restructuring charges | 2125 | 498 | 1898 | 30745 | 1320 |
| Branch closing expenses |  | 1275 |  |  |  |
| Bank owned life insurance restructuring charge |  |  |  |  | 327 |
| Amortization of core deposit intangible | 2845 | 3196 | 3196 | 1251 | 279 |
| Other expenses | 3509 | 3853 | 3719 | 2712 | 2756 |
| Total noninterest expenses | 57869 | 56946 | 58673 | 73649 | 39305 |
| **Income (loss) before income tax expense** | 52531 | 53369 | 57253 | (25281) | 27402 |
| Income tax expense (benefit) | 14709 | 13851 | 16277 | (4988) | 7160 |
| **Net income (loss)** | 37822 | 39518 | 40976 | (20293) | 20242 |
| Preferred dividends | 1509 | 1509 | 1509 | 1509 | 1509 |
| **Net income (loss) available to common stockholders** | $36313 | $38009 | $39467 | $(21802) | $18733 |
| Weighted average diluted common shares outstanding | 50382297 | 50414115 | 50462030 | 42173758 | 38511237 |
| Diluted EPS | $0.72 | $0.75 | $0.78 | $(0.52) | $0.49 |
| **<u>Reconciliation of GAAP Net Income to Operating Net Income:</u>** |  |  |  |  |  |
| **Net income (loss)** | $37822 | $39518 | $40976 | $(20293) | $20242 |
| Restructuring and exit charges |  |  | 994 |  |  |
| Merger expenses and restructuring charges | 2125 | 498 | 1898 | 30745 | 1320 |
| Estimated state tax liability on intercompany dividends |  |  |  | 3000 |  |
| Initial provision for credit losses related to merger |  |  |  | 27418 |  |
| Branch closing expenses |  | 1275 |  |  |  |
| Bank owned life insurance restructuring charge |  |  |  |  | 327 |
| Amortization of core deposit intangibles | 2845 | 3196 | 3196 | 1251 | 279 |
| Net (gains) losses on equity securities | (135) | 846 | (1674) | (347) | (529) |
| Defined benefit pension plan curtailment gain |  |  | (3501) |  |  |
| Employee retention tax credit |  |  | (6608) |  |  |
| Tax impact of adjustments | (1499) | (1802) | 1737 | (17168) | (420) |
| **Operating net income** | $41158 | $43531 | $37018 | $24606 | $21219 |
| Preferred dividends | 1509 | 1509 | 1509 | 1509 | 1509 |
| **Operating net income available to common stockholders** | $39649 | $42022 | $35509 | $23097 | $19710 |
| Operating diluted EPS (non-GAAP) <sup>(1)</sup> | $0.79 | $0.83 | $0.70 | $0.55 | $0.51 |
| **<u>Return on Assets Measures</u>** |  |  |  |  |  |
| Average assets | $13999581 | $13963138 | $14050585 | $11108430 | $9748605 |
| Return on avg. assets | 1.10% | 1.12% | 1.16% | (0.73)% | 0.84% |
| Operating return on avg. assets (non-GAAP) <sup>(2)</sup> | 1.19 | 1.24 | 1.05 | 0.89 | 0.88 |
| Pre-provision net operating revenue ("PPNR") return on avg. assets (non-GAAP) <sup>(3)</sup> | 1.81 | 1.75 | 1.61 | 1.52 | 1.34 |

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<sup>(1)</sup> Operating net income available to common stockholders divided by weighted average diluted shares outstanding.

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<sup>(2)</sup> Operating net income divided by average assets.

<sup>(3)</sup> Net income before income tax expense, provision for credit losses, merger expenses and restructuring charges, branch closing expenses, BOLI restructuring charges, restructuring and exit charges, employee retention tax credit, defined benefit pension plan curtailment gain, amortization of core deposit intangibles and net gains on equity securities divided by average assets.

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| | | | | | |
|:---|:---|:---|:---|:---|:---|
|  | **Three Months Ended** | **Three Months Ended** | **Three Months Ended** | **Three Months Ended** | **Three Months Ended** |
|  | **Mar. 31,** | **Dec. 31,** | **Sept. 30,** | **Jun. 30,** | **Mar. 31,** |
|  | **2026** | **2025** | **2025** | **2025** | **2025** |
| **<u>Return on Equity Measures</u>** | **(dollars in thousands)** | **(dollars in thousands)** | **(dollars in thousands)** | **(dollars in thousands)** | **(dollars in thousands)** |
| Average stockholders' equity | $1594699 | $1558366 | $1513892 | $1344254 | $1254373 |
| Less: average preferred stock | (110927) | (110927) | (110927) | (110927) | (110927) |
| Average common equity | $1483772 | $1447439 | $1402965 | $1233327 | $1143446 |
| Less: average intangible assets | (279158) | (279165) | (280814) | (235848) | (212915) |
| Average tangible common equity | $1204614 | $1168274 | $1122151 | $997479 | $930531 |
| Return on avg. common equity (GAAP) | 9.93% | 10.42% | 11.16% | (7.09)% | 6.64% |
| Operating return on avg. common equity (non-GAAP) <sup>(4)</sup> | 10.84 | 11.52 | 10.04 | 7.51 | 6.99 |
| Return on avg. tangible common equity (non-GAAP) <sup>(5)</sup> | 12.89 | 13.66 | 14.74 | (8.42) | 8.25 |
| Operating return on avg. tangible common equity (non-GAAP) <sup>(6)</sup> | 13.35 | 14.27 | 12.55 | 9.29 | 8.59 |
| **<u>Efficiency Measures</u>** |  |  |  |  |  |
| Total noninterest expenses | $57869 | $56946 | $58673 | $73649 | $39305 |
| Restructuring and exit charges |  |  | (994) |  |  |
| Merger expenses and restructuring charges | (2125) | (498) | (1898) | (30745) | (1320) |
| Branch closing expenses |  | (1275) |  |  |  |
| Bank owned life insurance restructuring charge |  |  |  |  | (327) |
| Amortization of core deposit intangibles | (2845) | (3196) | (3196) | (1251) | (279) |
| Operating noninterest expense | $52899 | $51977 | $52585 | $41653 | $37379 |
| Net interest income (tax equivalent basis) | $109976 | $107761 | $103155 | $79810 | $66580 |
| Noninterest income | 6796 | 6020 | 19409 | 5185 | 4451 |
| Defined benefit pension plan curtailment gain |  |  | (3501) |  |  |
| Employee retention tax credit |  |  | (6608) |  |  |
| Net (gains) losses on equity securities | (135) | 846 | (1674) | (347) | (529) |
| Operating revenue | $116637 | $114627 | $110781 | $84648 | $70502 |
| Operating efficiency ratio (non-GAAP) <sup>(7)</sup> | 45.4% | 45.3% | 47.5% | 49.2% | 53.0% |
| **<u>Net Interest Margin</u>** |  |  |  |  |  |
| Average interest-earning assets | $13160794 | $13093053 | $13172443 | $10468589 | $9224712 |
| Net interest income (tax equivalent basis) | $109976 | $107761 | $103155 | $79810 | $66580 |
| Net interest margin (non-GAAP) | 3.39% | 3.27% | 3.11% | 3.06% | 2.93% |

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<sup>(4)</sup> Operating net income available to common stockholders divided by average common equity.

<sup>(5)</sup> Net income available to common stockholders, excluding amortization of intangible assets, divided by average tangible common equity.

<sup>(6)</sup> Operating net income available to common stockholders, divided by average tangible common equity.

<sup>(7)</sup> Operating noninterest expense divided by operating revenue.

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| | | | | | |
|:---|:---|:---|:---|:---|:---|
|  | **As of** | **As of** | **As of** | **As of** | **As of** |
|  | **Mar. 31,** | **Dec. 31,** | **Sept. 30,** | **Jun. 30,** | **Mar. 31,** |
|  | **2026** | **2025** | **2025** | **2025** | **2025** |
| **<u>Capital Ratios and Book Value per Share</u>** | **(dollars in thousands, except for per share data)** | **(dollars in thousands, except for per share data)** | **(dollars in thousands, except for per share data)** | **(dollars in thousands, except for per share data)** | **(dollars in thousands, except for per share data)** |
| Stockholders equity | $1591547 | $1573340 | $1538344 | $1496431 | $1252939 |
| Less: preferred stock | (110927) | (110927) | (110927) | (110927) | (110927) |
| Common equity | $1480620 | $1462413 | $1427417 | $1385504 | $1142012 |
| Less: intangible assets | (277313) | (280158) | (278730) | (281926) | (212732) |
| Tangible common equity | $1203307 | $1182255 | $1148687 | $1103578 | $929280 |
| Total assets | $14209561 | $14002700 | $14023585 | $13915738 | $9759255 |
| Less: intangible assets | (277313) | (280158) | (278730) | (281926) | (212732) |
| Tangible assets | $13932248 | $13722542 | $13744855 | $13633812 | $9546523 |
| Common shares outstanding | 50288494 | 50271854 | 50273089 | 50270162 | 38469975 |
| Common equity ratio (GAAP) | 10.42% | 10.44% | 10.18% | 9.96% | 11.70% |
| Tangible common equity ratio (non-GAAP) <sup>(8)</sup> | 8.64 | 8.62 | 8.36 | 8.09 | 9.73 |
| Regulatory capital ratios (Bancorp): |  |  |  |  |  |
| Leverage ratio | 9.79% | 9.61% | 9.35% | 11.58% | 11.33% |
| Common equity Tier 1 risk-based ratio | 10.23 | 10.24 | 10.17 | 10.04 | 11.14 |
| Risk-based Tier 1 capital ratio | 11.19 | 11.22 | 11.17 | 11.06 | 12.46 |
| Risk-based total capital ratio | 13.81 | 13.88 | 13.88 | 14.35 | 14.29 |
| Regulatory capital ratios (Bank): |  |  |  |  |  |
| Leverage ratio | 10.81% | 10.59% | 10.35% | 12.81% | 11.67% |
| Common equity Tier 1 risk-based ratio | 12.36 | 12.36 | 12.37 | 12.22 | 12.82 |
| Risk-based Tier 1 capital ratio | 12.36 | 12.36 | 12.37 | 12.22 | 12.82 |
| Risk-based total capital ratio | 13.34 | 13.33 | 13.38 | 13.24 | 13.79 |
| Book value per share (GAAP) | $29.44 | $29.09 | $28.39 | $27.56 | $29.69 |
| Tangible book value per share (non-GAAP) <sup>(9)</sup> | 23.93 | 23.52 | 22.85 | 21.95 | 24.16 |

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<sup>(8)</sup> Tangible common equity divided by tangible assets. <br> <sup>(9)</sup> Tangible common equity divided by common shares outstanding at period-end.

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| | | | | | |
|:---|:---|:---|:---|:---|:---|
|  | **As of** | **As of** | **As of** | **As of** | **As of** |
|  | **Mar. 31,** | **Dec. 31,** | **Sept. 30,** | **Jun. 30,** | **Mar. 31,** |
|  | **2026** | **2025** | **2025** | **2025** | **2025** |
| **<u>Net Loan Charge-offs (Recoveries) <sup>(10)</sup>:</u>** | **(dollars in thousands)** | **(dollars in thousands)** | **(dollars in thousands)** | **(dollars in thousands)** | **(dollars in thousands)** |
| Net loan charge-offs (recoveries): |  |  |  |  |  |
| Charge-offs | $2758 | $5613 | $5174 | $5039 | $3555 |
| Recoveries | (467) | (836) | (38) | (118) | (155) |
| Net loan charge-offs | $2291 | $4777 | $5136 | $4921 | $3400 |
| Net loan charge-offs as a % of average loans receivable (annualized) | 0.08% | 0.17% | 0.18% | 0.22% | 0.17% |

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<sup>(10)</sup> Includes only non-PCD loans.

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| | | | | | |
|:---|:---|:---|:---|:---|:---|
|  | **As of** | **As of** | **As of** | **As of** | **As of** |
|  | **Mar. 31,** | **Dec. 31,** | **Sept. 30,** | **Jun. 30,** | **Mar. 31,** |
|  | **2026** | **2025** | **2025** | **2025** | **2025** |
| **<u>Asset Quality</u>** | **(dollars in thousands)** | **(dollars in thousands)** | **(dollars in thousands)** | **(dollars in thousands)** | **(dollars in thousands)** |
| Nonaccrual loans | $41579 | $45915 | $39671 | $39228 | $49860 |
| Other real estate owned |  |  |  |  |  |
| Nonperforming assets | $41579 | $45915 | $39671 | $39228 | $49860 |
| Allowance for credit losses - loans (excluding nonaccretable credit marks) | $115398 | $112282 | $113163 | $112854 | $82230 |
| Add: nonaccretable credit marks | 37658 | 42023 | 43336 | 43336 | 173 |
| Allowance for credit losses - loans ("ACL") | $153056 | $154305 | $156499 | $156190 | $82403 |
| Loans receivable | $11735596 | $11453280 | $11303636 | $11164477 | $8201134 |
| Nonaccrual loans as a % of loans receivable | 0.35% | 0.40% | 0.35% | 0.35% | 0.61 |
| Nonperforming assets as a % of total assets | 0.29 | 0.33 | 0.28 | 0.28 | 0.51 |
| ACL as a % of loans receivable | 1.30 | 1.35 | 1.38 | 1.40 | 1.00 |
| ACL as a % of nonaccrual loans | 368.1 | 336.1 | 394.5 | 398.2 | 165.3 |

---

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---

| |
|:---|
| **CONNECTONE BANCORP, INC.** |
| **NET INTEREST MARGIN ANALYSIS** |
| **(dollars in thousands)** |

---

---

| | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
|  | **For the Three Months Ended** | **For the Three Months Ended** | **For the Three Months Ended** | **For the Three Months Ended** | **For the Three Months Ended** | **For the Three Months Ended** | **For the Three Months Ended** | **For the Three Months Ended** | **For the Three Months Ended** |
|  | **March 31, 2026** | **March 31, 2026** | **March 31, 2026** | **December 31, 2025** | **December 31, 2025** | **December 31, 2025** | **March 31, 2025** | **March 31, 2025** | **March 31, 2025** |
|  | **Average** |  |  | **Average** |  |  | **Average** |  |  |
| **Interest-earning assets:** | **Balance** | **Interest** | **Rate <sup>(7)</sup>** | **Balance** | **Interest** | **Rate <sup>(7)</sup>** | **Balance** | **Interest** | **Rate <sup>(7)</sup>** |
| Investment securities <sup>(1) (2)</sup> | $1307184 | $13302 | 4.13% | $1329393 | $14154 | 4.22% | $745873 | $6375 | 3.47% |
| Loans receivable and loans held-for-sale <sup>(2) (3) (4)</sup> | 11537770 | 168945 | 5.94 | 11288646 | 168167 | 5.91 | 8209014 | 115883 | 5.73 |
| Federal funds sold and interest- |  |  |  |  |  |  |  |  |  |
| bearing deposits with banks | 264232 | 2387 | 3.66 | 425840 | 4249 | 3.96 | 229491 | 2466 | 4.36 |
| Restricted investment in bank stock | 51608 | 935 | 7.35 | 49174 | 936 | 7.55 | 40334 | 889 | 8.94 |
| **Total interest-earning assets** | 13160794 | 185569 | 5.72 | 13093053 | 187506 | 5.68 | 9224712 | 125613 | 5.52 |
| Allowance for loan losses | (154481) |  |  | (158576) |  |  | (84027) |  |  |
| Noninterest-earning assets | 993268 |  |  | 1028661 |  |  | 607920 |  |  |
| **Total assets** | $13999581 |  |  | $13963138 |  |  | $9748605 |  |  |
| **Interest-bearing liabilities:** |  |  |  |  |  |  |  |  |  |
| Money market deposits | 2903419 | 20146 | 2.81 | 2919230 | 21882 | 2.97 | 1572287 | 11287 | 2.91 |
| Savings deposits | 1014568 | 6304 | 2.52 | 1012567 | 7233 | 2.83 | 656789 | 5227 | 3.23 |
| Time deposits | 2901327 | 26713 | 3.73 | 2946459 | 28520 | 3.84 | 2480990 | 25154 | 4.11 |
| Other interest-bearing deposits | 2078500 | 12519 | 2.44 | 1975750 | 13219 | 2.65 | 1659055 | 12324 | 3.01 |
| **Total interest-bearing deposits** | 8897814 | 65682 | 2.99 | 8854006 | 70854 | 3.17 | 6369121 | 53992 | 3.44 |
| Borrowings | 833551 | 5513 | 2.68 | 781388 | 4582 | 2.33 | 686391 | 3725 | 2.20 |
| Subordinated debentures | 201928 | 4385 | 8.81 | 201741 | 4294 | 8.44 | 79988 | 1298 | 6.58 |
| Finance lease | 921 | 13 | 5.72 | 995 | 15 | 5.98 | 1210 | 18 | 6.03 |
| **Total interest-bearing liabilities** | 9934214 | 75593 | 3.09 | 9838130 | 79745 | 3.22 | 7136710 | 59033 | 3.35 |
| Noninterest-bearing demand deposits | 2384883 |  |  | 2473596 |  |  | 1305722 |  |  |
| Other liabilities | 85785 |  |  | 93046 |  |  | 51800 |  |  |
| **Total noninterest-bearing liabilities** | 2470668 |  |  | 2566642 |  |  | 1357522 |  |  |
| Stockholders' equity | 1594699 |  |  | 1558366 |  |  | 1254373 |  |  |
| **Total liabilities and stockholders' equity** | $13999581 |  |  | $13963138 |  |  | $9748605 |  |  |
| Net interest income (tax equivalent basis) |  | 109976 |  |  | 107761 |  |  | 66580 |  |
| Net interest spread <sup>(5)</sup> |  |  | 2.63% |  |  | 2.46% |  |  | 2.17% |
| Net interest margin <sup>(6)</sup> |  |  | 3.39% |  |  | 3.27% |  |  | 2.93% |
| Tax equivalent adjustment |  | (1172) |  |  | (1166) |  |  | (824) |  |
| Net interest income |  | $108804 |  |  | $106595 |  |  | $65756 |  |

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<sup>(1)</sup> Average balances are calculated on amortized cost.

<sup>(2)</sup> Interest income is presented on a tax equivalent basis using 21% federal tax rate.

<sup>(3)</sup> Includes loan fee income.

<sup>(4)</sup> Loans include nonaccrual loans.

<sup>(5)</sup> Represents difference between the average yield on interest-earning assets and the average cost of interest-bearing liabilities and is presented on a tax equivalent basis.

<sup>(6)</sup> Represents net interest income on a tax equivalent basis divided by average total interest-earning assets.

<sup>(7)</sup> Rates are annualized.