ConnectOne Bancorp (CNOB) investor relations material

Executive summary

• Achieved strong profitability, efficiency, and asset quality in 2025, surpassing $14 billion in assets and $1.4 billion in market cap after a major acquisition and systems integration.

• Net income available to common stockholders was $38.0M for Q4 2025, up from $18.9M in Q4 2024; full-year 2025 net income was $74.4M.

• Diluted EPS for Q4 2025 was $0.75, with full-year 2025 diluted EPS at $1.63; operating net income for Q4 2025 was $42.0M.

• Expanded presence in the New York Metro market, with seamless merger execution and high client retention.

• Announced closure of five branches as part of branch rationalization.

Financial highlights

• Fourth-quarter operating earnings rose 18.6% sequentially, with operating ROA at 1.24% and ROTCE at 14.3%.

• Net interest margin widened by 16 bps to 3.27% in Q4 2025, with fully taxable equivalent net interest income at $107.8M.

• Tangible common equity ratio increased to 8.62% at year-end; tangible book value per share at $23.52.

• Non-performing asset ratio was 0.33% at year-end 2025, with allowance for credit losses at 1.35% of loans.

• Noninterest expenses were $56.9M in Q4 2025, up year-over-year mainly due to the FLIC merger.

Outlook and guidance

• Net interest margin expected to rise by 5 bps in Q1 2026, with further increases per 25 bps Fed rate cut and per quarter from higher loan yields.

• Operating expenses projected to increase 4% by Q4 2026, with branch closures and staff optimization offsetting some growth.

• Loan portfolio growth guided to 3%-5% for 2026, with higher payoffs expected.

• SBA loan pipeline is robust, with expected pretax gains exceeding $4M in 2026.

• Effective tax rate for 2026 is estimated at 28%.