ConnectOne Bancorp recently released its 10-Q report. ConnectOne Bancorp, Inc. is the bank holding company for ConnectOne Bank, which serves small and mid-sized businesses, local professionals, and individuals in the United States with commercial banking products and services. Its offerings include deposit accounts, credit cards, cash management tools, consumer and commercial loans, and a range of real estate lending products; the company is headquartered in Englewood Cliffs, New Jersey, and was incorporated in 1982.
In Item 2, management said the quarter and six-month results were shaped by the acquisition of The First of Long Island Corporation, with the comparison period still reflecting only one month of FLIC activity. For the three months ended June 30, 2026, net income available to common stockholders rose to $40.2 million from a loss of $21.8 million a year earlier, and diluted earnings per share improved to $0.80 from a loss of $0.52. For the first six months, net income available to common stockholders increased to $76.5 million from a loss of $3.1 million, while diluted EPS rose to $1.51 from a loss of $0.08.
Net interest income did most of the work. Fully taxable equivalent net interest income for the second quarter climbed $35.0 million, or 43.9%, to $114.8 million, as the net interest margin widened to 3.42% from 3.06% and average interest-earning assets increased 28.5% to $13.45 billion from $10.47 billion. For the six-month period, fully taxable equivalent net interest income increased $78.4 million, or 53.6%, to $379.7 million, with the net interest margin rising to 3.41% from 3.00% and average interest-earning assets up 35.1% to $13.31 billion from $9.85 billion.
The loan book and deposit base both expanded. Average total loans were $11.82 billion in the second quarter, up from $9.12 billion a year earlier, and $11.68 billion for the first half, up from $8.67 billion. Average total interest-bearing deposits rose to $9.11 billion in the second quarter from $7.13 billion, while average noninterest-bearing demand deposits increased to $2.42 billion from $1.68 billion. On the funding side, the average cost of total interest-bearing deposits fell to 3.06% in the quarter from 3.39%, and to 3.03% for the first half from 3.41%.
Credit loss expense moved sharply lower. The provision for credit losses fell by $27.4 million in the second quarter and by $25.7 million in the first half, with management tying the year-earlier charge to the acquisition of FLIC. Noninterest expenses declined $18.2 million in the quarter, helped by the absence of $30.7 million of merger and restructuring charges booked in the prior-year period, while six-month noninterest expenses were essentially flat at $0.3 million higher year over year. Income tax expense increased $21.2 million in the quarter and $28.7 million in the half. Following these announcements, the company's shares moved 1.02%, and are now trading at a price of $33.81. For the full picture, make sure to review ConnectOne Bancorp's 10-Q report.
