Bloomberg Businessweek: "ConnectOne Bank CEO Remains Bullish Amid Economic Risks"

Date: November 24, 2025
Hosts: Carol Massar & Tim Stenovec
Featured Guest: Frank Sorrentino, Chairman & CEO, ConnectOne Bancorp

Episode Overview

In this episode, Carol Massar and Tim Stenovec sit down with Frank Sorrentino, CEO of ConnectOne Bank, for a candid look at the current state and prospects of the U.S. economy, with a particular focus on small business, real estate, and New York’s unique market dynamics. Sorrentino shares why he remains bullish despite economic uncertainties, addresses political shifts in New York, and outlines what developers and banks need from policymakers in a challenging environment.

Key Discussion Points & Insights

1. State of the Economy: Robust but Uncertain

• Sorrentino’s View:
  Despite widespread apprehension, Sorrentino remains optimistic about economic conditions, especially in the New York metro area.

  “We left the nice, calm part of the pool and now we're into the rapids... Yet, I believe we're on a robust footing here with our economy.” — Frank Sorrentino [02:36]

• Business Feedback:
  Most ConnectOne clients report strong current business performance, rising sales, and positive outlooks for the near future, despite generalized anxiety about what’s next.

  “Are your revenues up? Are you thinking about expansion? ...Our clients are telling us that business is continuing to improve, yet they have trepidation about where we’re heading.” — Frank Sorrentino [03:17]

• AI, Capital & Construction:
  Factors like AI integration, inflows of capital, and a construction boom are giving the region an edge.

2. Divergences Across Markets and Sectors

• Sorrentino notes a “tale of two economies,” with certain sectors and demographics outpacing others. This disparity is important both for economic planning and for interpreting recent political shifts.

  “We do need to take a look at this — what's the distribution of where wealth is being created and not?” — Frank Sorrentino [04:35]

3. Political Change & Its Impact on NYC

• Mayor-Elect Zoran Mamdani & Federal Funding:
  Concerns are raised about potential withdrawals of federal funds in response to the new, left-leaning city administration.

  “If we were to see in New York City or New York State funding cut off... would that have a big effect on the economy?” — Host [05:04]
  “It will have some effect... But New York has always been New York. Through all different types of political environments, it's been an uphill, nonstop economy.” — Frank Sorrentino [05:44]

• Long-term Optimism:
  Sorrentino trusts in New York’s resilience and suggests that political threats may not translate into serious economic harm.

  “At the end of the day, I think our president loves the city of New York. I can't see him doing anything that's genuinely going to be harmful to the city.” — Frank Sorrentino [06:58]

4. Real Estate Lending & Regulatory Risk

• Rent-Regulated Property Exposure:
  ConnectOne does have exposure to rent-stabilized properties via its commercial real estate (CRE) portfolio.

  “For properties trying to convert from rent regulated... to market rent — those properties are going to have some challenges going forward.” — Frank Sorrentino [07:22]

• Policy Shifts & Impact:
  Sorrentino references existing laws and notes that while efforts to shift properties to market rates are likely stymied, the existing rent-stabilized stock is stable for now, thanks in part to potential property tax relief and insurance programs under the incoming administration.
• Rent Trends:
  Sorrentino highlights the importance of balancing rent policy with the realities of rising expenses, hinting at the complexity but expressing a preference for policies that maintain robust affordable housing.

  “I'd like to see us be able to do more in that regard here in New York City.” — Frank Sorrentino [08:51]

5. The Supply Problem: Why Don’t We Build More Housing?

• New Rochelle as Case Study:
  Sorrentino points to New Rochelle’s approach, which prioritizes increasing housing supply to curb rent inflation.

  “The laws of supply and demand are sort of like gravity... So they built a lot of supply. Guess what happened to the rents? They came down.” — Frank Sorrentino [09:36]

• Barriers in New York City:
  Zoning, union requirements, and environmental regulations are cited as drivers of unaffordable construction costs, which, in turn, stymie development.

  “If you're going to force every small apartment builder to build using union labor, you're going to drive up the cost... And if they're unaffordable, they don't get built.” — Frank Sorrentino [10:25]

• What Developers Need:
  Significant regulatory adjustments and incentives from city hall are essential for boosting affordable housing stock.

6. Looking Ahead: Federal Reserve & Rate Policy

• Upcoming Fed Meeting:
  Hosts push for insight on Sorrentino’s expectations regarding Federal policy at the upcoming December FOMC meeting.
• Rate Cut Hopes:
  He expresses hope for a further 25-basis-point rate cut, arguing that inflation risks are overstated and that tariffs distort the picture.

  “My hope would be that they continue on the path and they cut rates another 25 basis points in December.” — Frank Sorrentino [11:25]

Notable Quotes & Memorable Moments

• On New York’s Economic Legacy:

  “If you chart the growth of New York from 1609... through to today, it has been an uphill, nonstop economy.” — Frank Sorrentino [05:51]

• On Housing Economics:

  “The laws of supply and demand are sort of like gravity... you can't undo them.” — Frank Sorrentino [09:36]

• On Regulatory Barriers:

  “They keep adding all of these things on and it makes the projects all unaffordable. And if they're unaffordable, they don't get built.” — Frank Sorrentino [10:58]

Timestamps for Key Segments

• [02:36] Sorrentino’s take on turbulence and optimism in the economy
• [03:13] Evidence of business wellness in the New York market
• [05:04] Hosts bring up Mayor-Elect Mamdani and political risk
• [05:44] Sorrentino on New York’s resilience despite funding threats
• [07:22] CRE and rent stabilization: bank exposure and policy impact
• [09:36] Housing supply and policy lessons from New Rochelle
• [10:25] Regulatory obstacles to affordable housing supply in NYC
• [11:25] Sorrentino’s outlook on the Federal Reserve’s next move

Conclusion

Frank Sorrentino’s insights offer a reassuring yet nuanced perspective on the regional economy, highlighting both the opportunities and the persistent hurdles for small businesses, real estate investors, and policymakers. Despite external shocks and ongoing apprehensions, his bullishness is rooted in economic realities and a deep belief in the resilience and adaptability of New York City and its business community.