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ConnectOne Bancorp Q1 2025 Earnings Report
ConnectOne Bancorp reported net income available to common stockholders of $18.7 million for the first quarter of 2025, with diluted earnings per share of $0.49.
Key Takeaways
ConnectOne Bancorp, Inc. reported a stable first quarter in 2025, with net income available to common stockholders at $18.7 million and diluted EPS at $0.49, essentially flat compared to the previous quarter. The company saw an increase in net interest income and a widening of its net interest margin, driven by lower deposit costs.
Net income available to common stockholders was $18.7 million for Q1 2025, compared to $18.9 million in Q4 2024 and $15.7 million in Q1 2024.
Diluted earnings per share remained flat at $0.49 for Q1 2025, consistent with Q4 2024, and up from $0.41 in Q1 2024.
Fully taxable equivalent net interest income increased by $1.0 million (1.6%) from Q4 2024 to $65.8 million in Q1 2025, with the net interest margin widening to 2.93% from 2.86%.
The company declared a cash dividend of $0.18 per share on common stock and $0.328125 per depositary share on preferred stock, both payable on June 2, 2025.
ConnectOne Bancorp
ConnectOne Bancorp
Forward Guidance
ConnectOne Bancorp anticipates continued positive momentum in its net interest margin, supported by a strengthened balance sheet and favorable interest rate positioning. The planned merger with The First of Long Island Corporation is expected to create a premier New York Metro community bank.
Positive Outlook
- Anticipates positive momentum in net interest margin to carry through the remainder of the year and into 2026.
- Expects continued margin expansion due to strengthened balance sheet and favorable interest rate positioning.
- Loan pipeline is robust, backed by solid credits at attractive spreads.
- Loan portfolio is expected to reflect steady, diversified growth.
- Planned merger with The First of Long Island Corporation is expected to create a premier New York Metro community bank with attractive opportunities.
Challenges Ahead
- Potential tariff policy impact on borrower health in various loan segments is a consideration, though direct exposure is limited.
- Loan portfolio contracted slightly since year-end.
- Non-operating items, primarily merger and branch closure related expenses, continue to impact net income.
- Income tax expense increased due to higher income before tax and lower tax-free adjustments.
- The company acknowledges inherent limitations and non-comparability of non-GAAP measures.