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ConnectOne Bancorp, Inc. Reports Third Quarter 2025 Results

1. ConnectOne reported third-quarter net income of $39.5 million. 2. Merger with FLIC improved earnings significantly compared to past quarters. 3. Operating net interest margin expanded to 3.11%, enhancing profitability. 4. Nonperforming assets decreased to 0.28%, indicating stable credit quality. 5. The board declared dividends on common and preferred stocks.

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Strong earnings performance and stable asset quality enhance investor confidence. Historical examples show rising stocks after positive quarterly reports and effective mergers.

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The report contains critical performance metrics that directly impact stock valuation and investor perception.

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The immediate positive financial results are likely to impact stock price quickly while the merger effects continue to stabilize. Similar instances show short-term surges post-earnings announcements.

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FLICPNCZION
Credit Trends Remain Solid Net Interest Margin Widening as Expected Declares Common and Preferred Dividends ENGLEWOOD CLIFFS, N.J., Oct. 30, 2025 (GLOBE NEWSWIRE) -- ConnectOne Bancorp, Inc. (Nasdaq: CNOB) (the “Company” or “ConnectOne”), parent company of ConnectOne Bank (the “Bank”), today reported net income (loss) available to common stockholders of $39.5 million for the third quarter of 2025 compared with $(21.8) million for the second quarter of 2025 and $15.7 million for the third quarter of 2024. Diluted earnings (loss) per share were $0.78 for the third quarter of 2025 compared with $(0.52) for the second quarter of 2025 and $0.41 for the third quarter of 2024. On June 1, 2025, the merger with The First of Long Island Corporation (“FLIC”) was completed, thus operating results for the second quarter include one month of activity from FLIC. Prior quarters include only the operations of ConnectOne. Return on average assets was 1.16%, (0.73)% and 0.70% for the three months ended September 30, 2025, June 30, 2025 and September 30, 2024, respectively. Return on average tangible common equity was 14.74%, (8.42)% and 6.93% for the three months ended September 30, 2025, June 30, 2025 and September 30, 2024, respectively. Operating net income available to common stockholders was $35.5 million for the third quarter of 2025, $23.1 million for the second quarter of 2025 and $16.1 million for the third quarter of 2024. Operating diluted earnings per share were $0.70 for the third quarter of 2025, $0.55 for the second quarter of 2025 and $0.42 for the third quarter of 2024. The third quarter of 2025 results included several nonrecurring items that contributed to the overall increase in net income available to common stockholders and diluted EPS. Notably, these items included a $6.6 million Employee Retention Tax Credit (“ERTC”) and a $3.5 million defined benefit pension plan curtailment gain, which were partially offset by $2.9 million in merger and restructuring expenses. See additional discussion of these nonrecurring items in the “Operating Results” section below. Operating return on average assets was 1.05%, 0.89% and 0.72% for the three months ended September 30, 2025, June 30, 2025 and September 30, 2024, respectively. Operating return on average tangible common equity was 12.55%, 9.29% and 7.03% for the three months ended September 30, 2025, June 30, 2025 and September 30, 2024, respectively. See supplemental tables for a complete reconciliation of GAAP earnings to operating earnings, and other non-GAAP measures. The increase in net income available to common stockholders and diluted earnings per share during the third quarter of 2025 when compared to the second quarter of 2025 was primarily due to a $30.2 million reduction in the provision for credit losses. The decrease was primarily due to an initial provision of $27.4 million related to the merger with FLIC that was recorded during the second quarter of 2025. Also contributing to the increase in earnings was a $23.1 million increase in net interest income, a $15.0 million decrease in noninterest expenses and a $14.2 million increase in noninterest income. These items were partially offset by an increase in income tax expense of $21.3 million. The increase in net income available to common stockholders and diluted earnings per share during the third quarter of 2025 when compared to the third quarter of 2024 was primarily due to a $41.1 million increase in net interest income and a $14.7 million increase in noninterest income. These increases were partially offset by an increase in noninterest expense of $20.0 million, an increase in income tax expense of $10.3 million, and an increase in the provision for credit losses of $1.7 million. “ConnectOne’s strong third quarter performance highlights the team’s disciplined execution and commitment to deepening client relationships while delivering on the Bank’s strategic objectives,” commented Frank Sorrentino, ConnectOne’s Chairman and Chief Executive Officer. “With our first full quarter post-merger, we’re operating seamlessly as one organization, realizing the positive financial benefits of the combination and expanded footprint.”  “Supported by solid momentum across the business, our loan and deposit pipeline is healthy, further propelled by our expansion on Long Island. Our third quarter client deposits increased at an annualized rate of 4.0% since June 30, 2025 while loans increased over 5.0%.” Mr. Sorrentino added, “The merger has also significantly improved our loan and deposit mix, net interest margin, and profitability ratios. During the quarter, our net interest margin expanded five basis points sequentially to 3.11% while our spot margin exceeded 3.20% at quarter-end. Additionally, pre-provision net operating revenue increased to 1.61% from 1.52% last quarter and from 1.13% year-over-year.”  “Our credit quality remains sound and stable, with nonperforming assets at just 0.28% and annualized net charge-offs below 0.20%. Noninterest income continues to build, operating efficiency is improving, and capital ratios remain strong with the Company’s total risk-based capital ratio at 13.88% and a tangible common equity ratio of 8.36%.”  Mr. Sorrentino concluded, “To date, we’ve built a strong, high-performing franchise. Looking ahead, we’re maintaining a clear focus on our strategic priorities, driving profitable growth,  and creating sustainable long-term value for shareholders.” Dividend Declarations The Company announced that its Board of Directors declared a cash dividend on both its common stock and its outstanding preferred stock. A cash dividend on common stock of $0.18 per share will be paid on December 1, 2025, to common stockholders of record on November 14, 2025. 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 December 1, 2025 to holders of record on November 14, 2025. Operating Results Fully taxable equivalent net interest income for the third quarter of 2025 was $103.2 million, an increase of $23.3 million, or 29.3%, from the second quarter of 2025. The increase from the second quarter of 2025 was primarily due to a 5 basis-point widening of the net interest margin to 3.11% from 3.06%, and a 25.8% 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 12 basis-point decrease in the average costs of deposits, including noninterest-bearing deposits. The decrease in average costs of deposits was partially offset by increases in the cost of subordinated debentures and borrowings.  The Company redeemed $75 million of subordinated debentures with a rate of 9.92% on September 15, 2025. The net interest margin for the third quarter was negatively impacted by the outstanding subordinated debentures and by excess cash balances, due to merger-related re-positioning. Fully taxable equivalent net interest income for the third quarter of 2025 increased $41.4 million, or 67.2%, from the third quarter of 2024, due to a 44 basis-point widening of the net interest margin to 3.11% from 2.67%, and a 43.1% 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 70 basis-point decrease in the average costs of deposits, including noninterest-bearing deposits, partially offset by an increase in cost of subordinated debt. Noninterest income was $19.4 million in the third quarter of 2025, $5.2 million in the second quarter of 2025 and $4.7 million in the third quarter of 2024. During the third quarter of 2025, the Company realized a $6.6 million one-time benefit related to the ERTC, a federal program under the CARES Act intended to encourage employee retention during the COVID19 pandemic. Additionally, the Company also recognized a $3.5 million defined benefit pension plan curtailment gain. The gain resulted from freezing the FLIC defined benefit pension plan on September 30, 2025. Excluding the impact of these two non-recurring items, noninterest income increased $4.1 million during the third quarter of 2025 compared to the linked quarter. The increases were due to a $1.3 million increase in net gains on equity securities, a $1.3 million increase in deposit, loan and other income, a $0.8 million increase in BOLI income and a $0.7 million increase in net gains on sale of loans held-for-sale (primarily SBA loans). The increases in deposit, loan and other income and BOLI income were primarily due to the merger with FLIC. Excluding the aforementioned ERTC and defined pension plan curtailment gain, noninterest income increased by $4.6 million during the third quarter compared to the third quarter of 2024. The increases were due to a $2.0 million increase in deposit, loan and other income, a $1.2 million increase in net gains on equity securities, a $0.8 million increase in BOLI income and a $0.5 million increase in net gains on sale of loans held-for-sale (primarily SBA loans). The increases in deposit, loan and other income and BOLI income were primarily due to the merger with FLIC. Noninterest expenses were $58.7 million for the third quarter of 2025, $73.6 million for the second quarter of 2025 and $38.6 million for the third quarter of 2024. The decrease of $15.0 million during the third quarter of 2025 when compared to the second quarter of 2025 was primarily due to a $28.8 million decrease in merger expenses, which was partially offset by a $7.2 million increase in salaries and employee benefits, a $1.9 million increase in amortization of core deposit intangibles, a $1.6 million increase in occupancy and equipment expenses and a $1.0 million restructuring and exit charge. The $20.0 million increase in noninterest expenses for the third quarter of 2025 when compared to the third quarter of 2024 was primarily due to a $9.4 million increase in salaries and employee benefits, a $2.9 million increase in amortization of core deposit intangibles, a $2.2 million increase in occupancy and equipment expenses and a $1.2 million increase in merger expenses. The variances from the third quarter of 2025 to the third quarter of 2024 were primarily due to the merger with FLIC. Income tax expense (benefit) was $16.3 million for the third quarter of 2025, $(5.0) million for the second quarter of 2025 and $6.0 million for the third quarter of 2024. The effective tax rates were 28.4%, (19.7)% and 26.0% for the third quarter of 2025, second quarter of 2025 and third quarter of 2024, respectively. The variances in expense and rates for these periods were primarily due to the merger with FLIC. For 2026, our effective tax rate is estimated to be approximately 28.0%, reflecting statutory rates for metropolitan New York City, book/tax permanent differences, organizational structure and investment tax credits. Asset Quality The provision for credit losses was $5.5 million for the third quarter of 2025, $35.7 million for the second quarter of 2025 and $3.8 million for the third quarter of 2024. Included in the provision for the second quarter of 2025 was a $27.4 million initial provision for credit losses related to the FLIC merger. 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. Nonperforming assets, which includes nonaccrual loans and other real estate owned (the Bank had no other real estate owned during the periods reported), were $39.7 million as of September 30, 2025, $57.3 million as of December 31, 2024 and $51.3 million as of September 30, 2024. The decrease in nonaccrual loans was primarily due to the work out of three CRE relationships totaling $22.0 million. Nonperforming assets as a percentage of total assets were 0.28% as of September 30, 2025, 0.58% as of December 31, 2024 and 0.53% as of September 30, 2024. The ratio of nonaccrual loans to loans receivable was 0.35%, 0.69% and 0.63%, as of September 30, 2025, December 31, 2024 and September 30, 2024, respectively. The annualized net loan charge-offs ratio was 0.18% for the third quarter of 2025, 0.22% for the second quarter of 2025 and 0.17% for the third quarter of 2024. The allowance for credit losses represented 1.38%, 1.00% and 1.02% of loans receivable as of September 30, 2025, December 31, 2024, and September 30, 2024, respectively. The allowance for credit losses related to the loan portfolio increased $73.8 million to $156.5 million, compared to $82.7 million as of December 31, 2024. The increase was primarily due to the FLIC merger: $43.3 million of allowance recorded through goodwill related to the purchased credit-deteriorated loans and $27.4 million reflecting the initial provision for credit losses. The allowance for credit losses as a percentage of nonaccrual loans was 394.5% as of September 30, 2025, 144.3% as of December 31, 2024 and 160.8% as of September 30, 2024. Criticized and classified loans as a percentage of loans receivable was 2.59% as of September 30, 2025, down from 2.68% as of December 31, 2024 and up from 2.23% as of September 30, 2024. Loans delinquent 30 to 89 days were 0.08% of loans receivable as of September 30, 2025, up from 0.04% as of December 31, 2024 and down from 0.16% as of September 30, 2024. Selected Balance Sheet Items The Company’s total assets were $14.0 billion as of September 30, 2025, compared to $9.9 billion as of December 31, 2024. Loans receivable were $11.3 billion as of September 30, 2025 and $8.3 billion as of December 31, 2024. Total deposits were $11.4 billion as of September 30, 2025 and $7.8 billion as of December 31, 2024. The increase in total assets, loans receivable and total deposits were primarily due to the merger with FLIC. The Company’s total stockholders’ equity was $1.5 billion as of September 30, 2025 and $1.2 billion as of December 31, 2024. The increase in total stockholders’ equity was primarily due to an increase in common stock of $270.8 million, which represented the fair value stock consideration issued for the FLIC merger, an increase in retained earnings of $13.5 million, and a decrease in the accumulated other comprehensive loss of $10.7 million. As of September 30, 2025, the Company’s tangible common equity ratio and tangible book value per share were 8.36% and $22.85, respectively, compared to 9.49% and $23.92, respectively, as of December 31, 2024. Total goodwill and other intangible assets were $278.7 million as of September 30, 2025, and $213.0 million as of December 31, 2024. 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. Third Quarter 2025 Results Conference Call Management will also host a conference call and audio webcast at 10:00 a.m. ET on October 30, 2025 to review the Company's financial performance and operating results. The conference call dial-in number is 1 (646) 307-1963, access code 6150571. 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 https://www.ConnectOneBank.com or at http://ir.connectonebank.com. A replay of the conference call will be available beginning at approximately 1:00 p.m. ET on Thursday, October 30, 2025 and ending on Thursday, November 6, 2025 by dialing 1 (609) 800-9909, access code 6150571. An online archive of the webcast will be available following the completion of the conference call at https://www.ConnectOneBank.com or at http://ir.connectonebank.com. 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 https://www.connectonebank.com. 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.  Investor Contact:William S. BurnsSenior Executive Vice President & CFO201.816.4474; bburns@cnob.com Media Contact:Shannan Weeks MikeWorldWide732.299.7890; sweeks@mww.com CONNECTONE BANCORP, INC. AND SUBSIDIARIESCONSOLIDATED CONDENSED STATEMENTS OF FINANCIAL CONDITION(in thousands)  September 30,2025 December 31,2024 September 30,2024  (unaudited)   (unaudited) ASSETS      Cash and due from banks$96,990  $57,816  $61,093  Interest-bearing deposits with banks 445,744   298,672   186,155  Cash and cash equivalents 542,734   356,488   247,248         Investment securities 1,252,202   612,847   646,713  Equity securities 20,133   20,092   20,399         Loans held-for-sale —   743   —         Loans receivable 11,303,636   8,274,810   8,111,976  Less: Allowance for credit losses - loans 156,499   82,685   82,494  Net loans receivable 11,147,137   8,192,125   8,029,482         Investment in restricted stock, at cost 51,516   40,449   42,772  Bank premises and equipment, net 55,888   28,447   29,068  Accrued interest receivable 60,630   45,498   46,951  Bank owned life insurance 367,767   243,672   242,016  Right of use operating lease assets 29,283   14,489   14,211  Goodwill 215,611   208,372   208,372  Core deposit intangibles 63,119   4,639   4,935  Other assets 217,565   111,739   107,436  Total assets$14,023,585  $9,879,600  $9,639,603         LIABILITIES      Deposits:      Noninterest-bearing$2,513,102  $1,422,044  $1,262,568  Interest-bearing 8,856,193   6,398,070   6,261,537    Total deposits 11,369,295   7,820,114   7,524,105  Borrowings 833,443   688,064   742,133  Subordinated debentures, net 201,677   79,944   79,818  Operating lease liabilities 33,185   15,498   15,252  Other liabilities 47,641   34,276   38,799  Total liabilities 12,485,241   8,637,896   8,400,107         COMMITMENTS AND CONTINGENCIES             STOCKHOLDERS' EQUITY      Preferred stock 110,927   110,927   110,927  Common stock 857,765   586,946   586,946  Additional paid-in capital 37,934   36,347   34,995  Retained earnings 644,944   631,446   619,497  Treasury stock (76,116)  (76,116)  (76,116) Accumulated other comprehensive loss (37,110)  (47,846)  (36,753) Total stockholders' equity 1,538,344   1,241,704   1,239,496  Total liabilities and stockholders' equity$14,023,585  $9,879,600  $9,639,603          CONNECTONE BANCORP, INC. AND SUBSIDIARIESCONSOLIDATED STATEMENTS OF INCOME(dollars in thousands, except for per share data)  Three Months EndedNine Months Ended  09/30/25 09/30/24 09/30/25 09/30/24 Interest income        Interest and fees on loans$165,937 $119,280 $413,604 $359,513 Interest and dividends on investment securities:          Taxable 12,033  4,740  24,457  13,757   Tax-exempt 2,014  1,119  4,530  3,394   Dividends 1,081  1,048  2,758  3,390 Interest on federal funds sold and other short-term investments 6,644  4,055  13,179  9,802   Total interest income 187,709  130,242  458,528  389,856 Interest expense        Deposits 75,209  63,785  189,440  186,278 Borrowings 10,483  5,570  22,432  20,952   Total interest expense 85,692  69,355  211,872  207,230          Net interest income 102,017  60,887  246,656  182,626 Provision for credit losses 5,500  3,800  44,700  10,300 Net interest income after provision for credit losses 96,517  57,087  201,956  172,326          Noninterest income        Deposit, loan and other income 3,836  1,817  8,412  5,063 Defined benefit pension plan curtailment gain 3,501  —  3,501  — Employee retention tax credit 6,608  —  6,608  — Income on bank owned life insurance 2,931  2,145  6,602  5,486 Net gains on sale of loans held-for-sale 859  343  1,372  2,126 Net gains on equity securities 1,674  432  2,550  309   Total noninterest income 19,409  4,737  29,045  12,984          Noninterest expenses        Salaries and employee benefits 32,401  22,957  80,212  67,809 Occupancy and equipment 5,122  2,889  11,280  8,797 FDIC insurance 2,400  1,800  6,200  5,400 Professional and consulting 2,929  2,147  7,893  5,998 Marketing and advertising 771  635  2,206  1,925 Information technology and communications 5,243  4,464  14,639  13,051 Restructuring and exit charges 994  —  994  — Merger expenses 1,898  742  33,963  742 Bank owned life insurance restructuring charge —  —  327  — Amortization of core deposit intangibles 3,196  297  4,726  939 Other expenses 3,719  2,710  9,187  8,639   Total noninterest expenses 58,673  38,641  171,627  113,300          Income before income tax expense 57,253  23,183  59,374  72,010 Income tax expense 16,277  6,022  18,449  18,588 Net income 40,976  17,161  40,925  53,422 Preferred dividends 1,509  1,509  4,527  4,527 Net income available to common stockholders$39,467 $15,652 $36,398 $48,895          Earnings per common share:        Basic$0.79 $0.41 $0.83 $1.27 Diluted 0.78  0.41  0.83  1.27           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. CONNECTONE BANCORP, INC.SUPPLEMENTAL GAAP AND NON-GAAP FINANCIAL MEASURES  As of  Sept. 30, Jun. 30, Mar. 31, Dec. 31, Sept. 30,  2025 2025 2025 2024 2024 Selected Financial Data(dollars in thousands) Total assets$14,023,585  $13,915,738  $9,759,255  $9,879,600  $9,639,603  Loans receivable:          Commercial 1,613,421   1,597,590   1,483,392   1,522,308   1,505,743  Commercial real estate 4,310,159   4,285,663   3,356,943   3,384,319   3,261,160  Multifamily 3,420,465   3,348,308   2,490,256   2,506,782   2,482,258  Commercial construction 728,615   681,222   617,593   616,246   616,087  Residential 1,233,305   1,254,646   256,555   249,691   250,249  Consumer 2,166   1,709   1,604   1,136   835  Gross loans 11,308,131   11,169,138   8,206,343   8,280,482   8,116,332  Net deferred loan fees (4,495)  (4,661)  (5,209)  (5,672)  (4,356) Loans receivable 11,303,636   11,164,477   8,201,134   8,274,810   8,111,976  Loans held-for-sale —   1,027   202   743   -  Total loans$11,303,636  $11,165,504  $8,201,336  $8,275,553  $8,111,976             Investment and equity securities$1,272,335  $1,246,907  $655,665  $632,939  $667,112  Goodwill and other intangible assets 278,730   281,926   212,732   213,011   213,307  Deposits:          Noninterest-bearing demand$2,513,102  $2,424,529  $1,319,196  $1,422,044  $1,262,568  Time deposits 2,977,952   3,065,015   2,550,223   2,557,200   2,614,187  Other interest-bearing deposits 5,878,241   5,788,943   3,897,811   3,840,870   3,647,350  Total deposits$11,369,295  $11,278,487  $7,767,230  $7,820,114  $7,524,105             Borrowings$833,443  $783,859  $613,053  $688,064  $742,133  Subordinated debentures (net of debt issuance costs) 201,677   276,500   80,071   79,944   79,818  Total stockholders' equity 1,538,344   1,496,431   1,252,939   1,241,704   1,239,496             Quarterly Average Balances          Total assets$14,050,585  $11,108,430  $9,748,605  $9,563,446  $9,742,853  Loans receivable:          Commercial$1,583,673  $1,486,245  $1,488,962  $1,487,850  $1,485,777  Commercial real estate (including multifamily) 7,630,195   6,404,302   5,852,342   5,733,188   5,752,467  Commercial construction 704,170   643,115   610,859   631,022   628,740  Residential 1,241,375   587,118   256,430   250,589   252,975  Consumer 6,747   5,759   5,687   5,204   7,887  Gross loans 11,166,160   9,126,539   8,214,280   8,107,853   8,127,846  Net deferred loan fees (4,418)  (5,097)  (5,525)  (4,727)  (4,513) Loans receivable 11,161,742   9,121,442   8,208,755   8,103,126   8,123,333  Loans held-for-sale 318   352   259   498   83  Total loans$11,162,060  $9,121,794  $8,209,014  $8,103,624  $8,123,416             Investment and equity securities$1,274,000  $845,614  $655,191  $653,988  $650,897  Goodwill and other intangible assets 280,814   235,848   212,915   213,205   213,502  Deposits:          Noninterest-bearing demand$2,486,993  $1,680,653  $1,305,722  $1,304,699  $1,259,912  Time deposits 3,019,848   2,662,411   2,480,990   2,478,163   2,625,329  Other interest-bearing deposits 5,889,230   4,463,648   3,888,131   3,838,575   3,747,427  Total deposits$11,396,071  $8,806,712  $7,674,843  $7,621,437  $7,632,668             Borrowings$783,994  $723,303  $686,391  $648,300  $717,586  Subordinated debentures (net of debt issuance costs) 263,511   170,802   79,988   79,862   79,735  Total stockholders' equity 1,513,892   1,344,254   1,254,373   1,241,738   1,234,724    Three Months Ended  Sept. 30, Jun. 30, Mar. 31, Dec. 31, Sept. 30,  2025 2025 2025 2024 2024  (dollars in thousands, except for per share data) Net interest income$102,017  $78,883  $65,756  $64,711  $60,887  Provision for credit losses 5,500   35,700   3,500   3,500   3,800  Net interest income after provision for credit losses 96,517   43,183   62,256   61,211   57,087  Noninterest income          Deposit, loan and other income 3,836   2,570   2,006   1,798   1,817  Defined benefit pension plan curtailment gain 3,501   —   —   —   —  Employee retention tax credit 6,608   —   —   —   —  Income on bank owned life insurance 2,931   2,087   1,584   1,656   2,145  Net gains on sale of loans held-for-sale 859   181   332   597   343  Net gains (losses) on equity securities 1,674   347   529   (307)  432  Total noninterest income 19,409   5,185   4,451   3,744   4,737  Noninterest expenses          Salaries and employee benefits 32,401   25,233   22,578   22,244   22,957  Occupancy and equipment 5,122   3,478   2,680   2,818   2,889  FDIC insurance 2,400   2,000   1,800   1,800   1,800  Professional and consulting 2,929   2,598   2,366   2,449   2,147  Marketing and advertising 771   840   595   495   635  Information technology and communications 5,243   4,792   4,604   4,523   4,464  Restructuring and exit charges 994   —   —   —   —  Merger expenses 1,898   30,745   1,320   863   742  Branch closing expenses —   —   —   477   —  Bank owned life insurance restructuring charge —   —   327   —   —  Amortization of core deposit intangible 3,196   1,251   279   296   297  Other expenses 3,719   2,712   2,756   2,533   2,710  Total noninterest expenses 58,673   73,649   39,305   38,498   38,641             Income (loss) before income tax expense 57,253   (25,281)  27,402   26,457   23,183  Income tax expense (benefit) 16,277   (4,988)  7,160   6,086   6,022  Net income (loss) 40,976   (20,293)  20,242   20,371   17,161  Preferred dividends 1,509   1,509   1,509   1,509   1,509  Net income (loss) available to common stockholders$39,467  $(21,802) $18,733  $18,862  $15,652             Weighted average diluted common shares outstanding 50,462,030   42,173,758   38,511,237   38,519,581   38,525,484  Diluted EPS$0.78  $(0.52) $0.49  $0.49  $0.41             Reconciliation of GAAP Net Income to Operating Net Income:          Net income (loss)$40,976  $(20,293) $20,242  $20,371  $17,161  Restructuring and exit charges 994   —   —   —   —  Merger expenses 1,898   30,745   1,320   863   742  Estimated state tax liability on intercompany dividends —   3,000   —   —   —  Initial provision for credit losses related to merger —   27,418   —   —   —  Branch closing expenses —   —   —   477   —  Bank owned life insurance restructuring charge —   —   327   —   —  Amortization of core deposit intangibles 3,196   1,251   279   296   297  Net (gains) losses on equity securities (1,674)  (347)  (529)  307   (432) Defined benefit pension plan curtailment gain (3,501)  —   —   —   —  Employee retention tax credit (6,608)  —   —   —   —  Tax impact of adjustments 1,737   (17,168)  (420)  (585)  (171) Operating net income$37,018  $24,606  $21,219  $21,729  $17,597  Preferred dividends 1,509   1,509   1,509   1,509   1,509  Operating net income available to common stockholders$35,509  $23,097  $19,710  $20,220  $16,088             Operating diluted EPS (non-GAAP)(1)$0.70  $0.55  $0.51  $0.52  $0.42             Return on Assets Measures          Average assets$14,050,585  $11,108,430  $9,748,605  $9,563,446  $9,742,853  Return on avg. assets 1.16 % (0.73)% 0.84 % 0.84 % 0.70 %Operating return on avg. assets (non-GAAP)(2) 1.05   0.89   0.88   0.90   0.72  Pre-provision net operating revenue (“PPNR”) return on avg. assets (non-GAAP)(3) 1.61   1.52   1.34   1.31   1.13                       (1)Operating net income available to common stockholders divided by weighted average diluted shares outstanding.(2)Operating net income divided by average assets.(3)Net income before income tax expense, provision for credit losses, merger charges, 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.  Three Months Ended  Sept. 30, Jun. 30, Mar. 31, Dec. 31, Sept. 30,  2025 2025 2025 2024 2024 Return on Equity Measures(dollars in thousands) Average stockholders' equity$1,513,892  $1,344,254  $1,254,373  $1,241,738  $1,234,724  Less: average preferred stock (110,927)  (110,927)  (110,927)  (110,927)  (110,927) Average common equity$1,402,965  $1,233,327  $1,143,446  $1,130,811  $1,123,797  Less: average intangible assets (280,814)  (235,848)  (212,915)  (213,205)  (213,502) Average tangible common equity$1,122,151  $997,479  $930,531  $917,606  $910,295  Return on avg. common equity (GAAP) 11.16 % (7.09)% 6.64 % 6.64 % 5.54 %Operating return on avg. common equity (non-GAAP)(4) 10.04   7.51   6.99   7.11   5.70  Return on avg. tangible common equity (non-GAAP)(5) 14.74   (8.42)  8.25   8.27   6.93  Operating return on avg. tangible common equity (non-GAAP)(6) 12.55   9.29   8.59   8.77   7.03             Efficiency Measures          Total noninterest expenses$58,673  $73,649  $39,305  $38,498  $38,641  Restructuring and exit charges (994)  —   —   —   —  Merger expenses (1,898)  (30,745)  (1,320)  (863)  (742) Branch closing expenses —   —   —   (477)  —  Bank owned life insurance restructuring charge —   —   (327)  —   —  Amortization of core deposit intangibles (3,196)  (1,251)  (279)  (296)  (297) Operating noninterest expense$52,585  $41,653  $37,379  $36,862  $37,602             Net interest income (tax equivalent basis)$103,155  $79,810  $66,580  $65,593  $61,710  Noninterest income 19,409   5,185   4,451   3,744   4,737  Defined benefit pension plan curtailment gain (3,501)  —   —   —   —  Employee retention tax credit (6,608)  —   —   —   —  Net (gains) losses on equity securities (1,674)  (347)  (529)  307   (432) Operating revenue$110,781  $84,648  $70,502  $69,644  $66,015             Operating efficiency ratio (non-GAAP)(7) 47.5 % 49.2 % 53.0 % 52.9 % 57.0 %           Net Interest Margin          Average interest-earning assets$13,172,443  $10,468,589  $9,224,712  $9,117,201  $9,206,038  Net interest income (tax equivalent basis)$103,155  $79,810  $66,580  $65,593  $61,710  Net interest margin (non-GAAP) 3.11 % 3.06 % 2.93 % 2.86 % 2.67 %           (4)Operating net income available to common stockholders divided by average common equity.(5)Net income available to common stockholders, excluding amortization of intangible assets, divided by average tangible common equity.(6)Operating net income available to common stockholders, divided by average tangible common equity.(7)Operating noninterest expense divided by operating revenue.  As of  Sept. 30, Jun. 30, Mar. 31, Dec. 31, Sept. 30,  2025 2025 2025 2024 2024 Capital Ratios and Book Value per Share(dollars in thousands, except for per share data) Stockholders equity$1,538,344  $1,496,431  $1,252,939  $1,241,704  $1,239,496  Less: preferred stock (110,927)  (110,927)  (110,927)  (110,927)  (110,927) Common equity$1,427,417  $1,385,504  $1,142,012  $1,130,777  $1,128,569  Less: intangible assets (278,730)  (281,926)  (212,732)  (213,011)  (213,307) Tangible common equity$1,148,687  $1,103,578  $929,280  $917,766  $915,262             Total assets$14,023,585  $13,915,738  $9,759,255  $9,879,600  $9,639,603  Less: intangible assets (278,730)  (281,926)  (212,732)  (213,011)  (213,307) Tangible assets$13,744,855  $13,633,812  $9,546,523  $9,666,589  $9,426,296             Common shares outstanding 50,273,089   50,270,162   38,469,975   38,370,317   38,368,217             Common equity ratio (GAAP) 10.18 % 9.96 % 11.70 % 11.45 % 11.71 %Tangible common equity ratio (non-GAAP)(8) 8.36   8.09   9.73   9.49   9.71             Regulatory capital ratios (Bancorp):          Leverage ratio 9.35 % 11.58 % 11.33 % 11.33 % 11.10 %Common equity Tier 1 risk-based ratio 10.17   10.04   11.14   10.97   11.07  Risk-based Tier 1 capital ratio 11.17   11.06   12.46   12.29   12.42  Risk-based total capital ratio 13.88   14.35   14.29   14.11   14.29             Regulatory capital ratios (Bank):          Leverage ratio 10.35 % 12.81 % 11.67 % 11.66 % 11.43 %Common equity Tier 1 risk-based ratio 12.37   12.22   12.82   12.63   12.79  Risk-based Tier 1 capital ratio 12.37   12.22   12.82   12.63   12.79  Risk-based total capital ratio 13.38   13.24   13.79   13.60   13.77             Book value per share (GAAP)$28.39  $27.56  $29.69  $29.47  $29.41  Tangible book value per share (non-GAAP)(9) 22.85   21.95   24.16   23.92   23.85             Net Loan Charge-offs (Recoveries):          Net loan charge-offs (recoveries):          Charge-offs$5,173  $5,039  $3,555  $3,363  $3,559  Recoveries (38)  (118)  (155)  (29)  (53) Net loan charge-offs$5,135  $4,921  $3,400  $3,334  $3,506  Net loan charge-offs as a % of average loans receivable (annualized) 0.18 % 0.22 % 0.17 % 0.16 % 0.17 %           Asset Quality          Nonaccrual loans$39,671  $39,228  $49,860  $57,310  $51,300  Other real estate owned —   —   —   —   —  Nonperforming assets$39,671  $39,228  $49,860  $57,310  $51,300             Allowance for credit losses - loans (“ACL”)$156,499  $156,190  $82,403  $82,685  $82,494  Less: nonaccretable credit marks 43,336   43,336   173   173   173  ACL excluding nonaccretable credit marks$113,163  $112,854  $82,230  $82,512  $82,321             Loans receivable 11,303,636   11,164,477   8,201,134   8,274,810   8,111,976             Nonaccrual loans as a % of loans receivable 0.35 % 0.35 % 0.61 % 0.69 % 0.63 %Nonperforming assets as a % of total assets 0.28   0.28   0.51   0.58   0.53  ACL as a % of loans receivable 1.38   1.40   1.00   1.00   1.02  ACL excluding nonaccretable credit marks as a % of loans receivable 1.00   1.01   1.00   1.00   1.01  ACL as a % of nonaccrual loans 394.5   398.2   165.3   144.3   160.8             (8)Tangible common equity divided by tangible assets(9)Tangible common equity divided by common shares outstanding at period-end  CONNECTONE BANCORP, INC.NET INTEREST MARGIN ANALYSIS(dollars in thousands)  September 30, 2025June 30, 2025September 30, 2024Interest-earning assets:AverageBalance Interest Rate(7)  AverageBalance Interest Rate(7)  AverageBalance Interest Rate(7) Investment securities(1) (2)$1,355,775  $14,581  4.27% $935,996  $9,234  3.96% $736,946  $6,157  3.32%Loans receivable and loans held-for-sale(2) (3) (4) 11,162,060   166,541  5.92   9,121,794   132,865  5.84   8,123,416   119,805  5.87 Federal funds sold and interest-                    bearing deposits with banks 605,344   6,644  4.35   367,309   4,070  4.44   304,009   4,056  5.31 Restricted investment in bank stock 49,264   1,081  8.71   43,490   788  7.27   41,667   1,048  10.01 Total interest-earning assets 13,172,443   188,847  5.69   10,468,589   146,957  5.63   9,206,038   131,066  5.66 Allowance for loan losses (159,157)       (98,030)       (83,355)     Noninterest-earning assets 1,037,299        737,871        620,170      Total assets$14,050,585       $11,108,430       $9,742,853                           Interest-bearing liabilities:                    Money market deposits 3,041,528   24,578  3.21   2,016,336   15,467  3.08   1,607,941   13,610  3.37 Savings deposits 949,775   7,198  3.01   777,951   6,172  3.18   508,183   4,335  3.39 Time deposits 3,019,848   30,072  3.95   2,662,411   26,636  4.01   2,625,329   30,245  4.58 Other interest-bearing deposits 1,897,927   13,361  2.79   1,669,361   11,964  2.87   1,631,303   15,595  3.80 Total interest-bearing deposits 8,909,078   75,209  3.35   7,126,059   60,239  3.39   6,372,756   63,785  3.98                      Borrowings 783,994   4,550  2.30   723,303   3,530  1.96   717,586   4,239  2.35 Subordinated debentures 263,511   5,917  8.91   170,802   3,361  7.89   79,735   1,312  6.55 Finance lease 1,068   16  5.94   1,139   17  5.99   1,349   20  5.90 Total interest-bearing liabilities 9,957,651   85,692  3.41   8,021,303   67,147  3.36   7,171,426   69,356  3.85                      Noninterest-bearing demand deposits 2,486,993        1,680,653        1,259,912      Other liabilities 92,049        62,220        76,791      Total noninterest-bearing liabilities 2,579,042        1,742,873        1,336,703      Stockholders' equity 1,513,892        1,344,254        1,234,724      Total liabilities and stockholders' equity$14,050,585       $11,108,430       $9,742,853                           Net interest income (tax equivalent basis)   103,155        79,810        61,710    Net interest spread(5)    2.28%     2.27%     1.82%                     Net interest margin(6)    3.11%     3.06%     2.67%                     Tax equivalent adjustment   (1,138)       (927)       (823)   Net interest income  $102,017       $78,883       $60,887                         (1)Average balances are calculated on amortized cost.(2)Interest income is presented on a tax equivalent basis using 21% federal tax rate.(3)Includes loan fee income.(4)Loans include nonaccrual loans.(5)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.(6)Represents net interest income on a tax equivalent basis divided by average total interest-earning assets.(7)Rates are annualized.

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