Tax and regulatory reforms should help banks in 2017, but don't underestimate the impact of better business sentiment, said Frank Sorrentino, CEO of ConnectOne Bank (CNOB) .

Sorrentino has seen his bank's stock surge almost 40% since Election Day. He said that the incoming Trump administration will make it easier for banks to operate -- and lend -- by reforming Dodd-Frank and other financial regulations.

Finally, Sorrentino does not think potential Federal Reserve rate hikes will derail economic growth.

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