The credit quality deterioration from NYC rent-stabilized multifamily loans is the key risk to monitor. While core earnings and NIM trends remain positive, further charge-offs or reserve builds could pressure the stock. Watch for updates on the remaining $63.8M criticized exposure and any guidance on credit normalization.
Price Chart
Executive Summary
ConnectOne Bancorp reported Q2 2026 operating EPS of $0.84, beating consensus of $0.82 by 2.4%, while revenue of $121.5M matched estimates. Net interest margin widened to 3.42% (7th consecutive expansion) and loans grew 5% annualized, but credit quality deteriorated sharply: nonperforming assets doubled to $79.7M (0.55% of assets) driven by a $13.8M charge-off on NYC rent-stabilized multifamily loans, and net charge-offs rose to 0.56% annualized from 0.08% last quarter.
Key Financial Metrics
Key Facts
- Operating diluted EPS $0.84 vs consensus $0.82 (beat 2.4%)
- Revenue $121.5M exactly in line with consensus
- Net interest margin expanded to 3.42% from 3.39% QoQ and 3.06% YoY
- Nonperforming assets surged to $79.7M (0.55% of assets) from $41.6M (0.29%) Q1 2026
- Net charge-offs of $16.5M (0.56% annualized) vs $2.3M (0.08%) prior quarter
- Allowance for credit losses declined to 1.18% of loans from 1.30%
- Tangible book value per share rose to $24.66 from $23.93 Q1 2026
- No share repurchases in Q2 2026; $50M renewable energy tax credit fund commitment
Financial Impact
Operating EPS beat by $0.02 (2.4%) but credit deterioration with $13.8M charge-off and $29.9M new nonaccruals on NYC rent-regulated multifamily loans
Risk Factors
- Further charge-offs or migration to nonaccrual on the NYC rent-regulated multifamily portfolio
- Potential regulatory scrutiny or rating agency actions on asset quality
- Higher provision expense in coming quarters if economic forecasts worsen
Market Snapshot
Investment Themes
Documents Analyzed
This report is based on 6 SEC documents filed with EDGAR.
| Document | Accession Number |
|---|---|
| 8-K Filing (Primary) | 0001437749-26-024230 |
| Document: cnob20260423_8k.htm | 0001437749-26-024230 |
| Document: 0001437749-26-024230-index-headers.html | 0001437749-26-024230 |
| Document: 0001437749-26-024230-index.html | 0001437749-26-024230 |
| Document: 0001437749-26-024230.txt | 0001437749-26-024230 |
| 8-K Data (Synthetic) | 0001437749-26-024230 |
Filters
| Type | Now | ||||
|---|---|---|---|---|---|
Oct 22, 2026 4d ago | 8-K | $32.82 | awaiting T+20 | — | $32.84 (+0.06%) |
Oct 8, 2026 18d ago | 8-K | $30.22 | awaiting T+20 | — | $32.84 (+8.67%) |
Sep 10, 2026 6w ago | 8-K | $31.59 $30.22 | ▼ −4.34% | ▼ −6.46% | $32.84 (+3.96%) |
Jul 28, 2026 12w ago | 8-K | $33.10 $32.02 | ▼ −3.26% | ▼ −6.64% | $32.84 (−0.79%) |
Jul 23, 2026 13w ago | 8-K | $31.40 $32.25 | ▲ +2.71% | ▼ −0.60% | $32.84 (+4.59%) |
Jul 9, 2026 15w ago | 8-K | $32.06 $33.09 | ▲ +3.21% | ▲ +0.97% | $32.84 (+2.43%) |
Jul 9, 2026 15w ago | Press Release | $32.06 $33.09 | ▲ +3.21% | ▲ +0.97% | $32.84 (+2.43%) |
Apr 23, 2026 26w ago | Press Release | $28.93 $29.87 | ▲ +3.25% | ▼ −1.39% | $32.84 (+13.52%) |
Apr 9, 2026 28w ago | Press Release | $28.25 $30.16 | ▲ +6.76% | ▼ −0.81% | $32.84 (+16.25%) |
US Market Status
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