ConnectOne Q3 EPS $0.59; $23M Charge on $750M Multifamily Loan Sale
CNOB sits 33% above its 52-week low of $23.2.
Summary
ConnectOne's Q3 GAAP EPS fell to $0.59 on a $23.0 million pretax charge from selling up to ~$750 million of multifamily loans, while operating EPS was $0.95 and operating return on tangible common equity hit 15.2%. The sale cuts CRE and NYC rent-stabilized concentrations and is expected to close in late October.
Key Events · Earnings and Guidance · CNOB
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Q3 GAAP EPS $0.59 on Restructuring Charge
Net income available to common stockholders was $29.9 million, or $0.59 per diluted share, versus $0.80 in Q2 2026 and $0.78 a year ago, driven by a $23.0 million pretax restructuring charge.
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Operating EPS $0.95, PPNR Above 2%
Excluding the charge and other non-operating items, operating net income available to common stockholders was $47.9 million ($0.95 per diluted share), operating return on tangible common equity was 15.2%, and operating PPNR was 2.01% of average assets.
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$750M Multifamily Loan Pool to Be Sold
The company agreed to sell up to approximately $750 million unpaid principal balance of non-relationship multifamily loans to a single third-party purchaser; the pool was marked to held-for-sale at $678.9 million, producing the $23.0 million pretax loss.
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CRE Concentration Falls to ~397% Proforma
Proforma for the sale, the regulatory CRE concentration ratio declines to approximately 397% from 439% at June 30, 2026, and NYC rent-stabilized exposure drops to about 2% of total loans from 6%.
Analysis · CNOB · Finance
Headline GAAP earnings fell sharply — $0.59 per diluted share versus $0.80 in Q2 — but almost all of that reflects a deliberate, one-time balance-sheet move, not deterioration in the core bank. ConnectOne agreed to sell up to roughly $750 million of non-relationship multifamily loans (61% of the pool secured by NYC rent-stabilized properties), took a $23.0 million pretax loss marking the pool to held-for-sale at $678.9 million, and expects to close in late October with another $7-$8 million of transaction costs in Q4. Strip that out and operating EPS was $0.95, operating return on tangible common equity was 15.2%, and operating PPNR reached 2.01% of average assets — the strongest core quarter in the comparison set. The trade-off is real: the sale cuts CRE concentration to about 397% from 439% and NYC rent-stabilized exposure to roughly 2% of loans from 6%, reducing exactly the credit risk that drove elevated charge-offs earlier in 2026, but most proceeds get reinvested in government-guaranteed securities at similar yields, so earnings power is largely preserved rather than grown. Watch the late-October closing, which converts the charge into cash and finalizes the balance-sheet shape.
How filings like this one have moved
In the 30 days to Oct 22, 2026, 36.8% of the 1026 measured filings Wiseek scored 8 moved their stock by 5% or more by the next session's close. The median move was -0.78%. These are measured outcomes after filings of this importance, not a forecast for this one.
Measured one observation per ticker per day, after exclusions. Current figures: Filing Impact Tracker · open dataset
At the time of this filing, CNOB was trading at $30.80 on NASDAQ in the Finance sector, with a market capitalization of approximately $1.6B. The 52-week trading range was $23.20 to $34.14. This filing was assessed with positive market sentiment and an importance score of 8 out of 10.