ConnectOne Bancorp 3Q 2026: Net interest income $117.3M, net income $29.9M, EPS $0.59— 10-Q Summary

What happened

ConnectOne Bancorp reported third-quarter 2026 net interest income of $117.3M, up 15%, while net income available to common stockholders fell 24.3% to $29.9M and diluted EPS dropped to $0.59 from $0.78. It also sold $690.2M of multifamily loans in October.

Confirmed

Global impact / market context

Profit fell even as core lending income rose because a loan-sale loss and lower one-time income weighed on results. The $690.2M loan sale shrinks rent-stabilized New York City exposure but removes interest-earning assets, so future profit depends on reinvesting proceeds at similar yields.

Analyst inference

This is a bank cutting commercial real estate concentration, which means reducing how much of its loan book is tied to one risky property type. Investors weigh lower risk against lost interest income; rising nonaccrual loans, which means loans no longer paying as agreed, explain the caution.

Analyst inference

What to watch

1. Nonaccrual loans rose to $64.3M, mainly from New York City rent-stabilized multifamily credits, so watch whether this figure keeps climbing in coming quarters. Confirmed
2. Management plans to reinvest loan-sale proceeds into securities and repay wholesale funding, which means borrowed money; watch whether this mix supports net interest income. Proposed
3. Fourth-quarter expenses are expected to rise with normal costs, so watch whether expense growth outpaces revenue and squeezes profit per sale. Analyst inference

Evidence

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