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Sep 30, 2024
ConnectOne Bancorp Q3 2024 Earnings Report
Reported a decrease in net income compared to the previous quarter and prior year, impacted by increased expenses and provision for credit losses.
Key Takeaways
ConnectOne Bancorp reported a net income available to common stockholders of $15.7 million for Q3 2024, a decrease from $17.5 million in the previous quarter and $19.9 million in the same quarter last year. The decrease was primarily due to increases in noninterest expenses and provision for credit losses.
Net income available to common stockholders was $15.7 million, down from both the previous quarter and the prior year.
Diluted earnings per share (EPS) decreased to $0.41, compared to $0.46 in the second quarter of 2024 and $0.51 in the third quarter of 2023.
The company announced a planned merger with The First of Long Island Corporation.
Net interest margin contracted to 2.67% due to increased average cash balances and decreased loan prepayment fees.
Forward Guidance
The net interest margin is expected to increase by 10 basis points or more in the fourth quarter of 2024 reflecting the Fed’s actual and expected rate cuts along with deployment of excess cash-on-hand.
Positive Outlook
- Net interest margin expected to increase by 10 basis points or more in Q4 2024.
- Benefit from Fed's actual and expected rate cuts.
- Deployment of excess cash-on-hand.
- Liability-sensitive balance sheet positioned to drive increased profitability through Q4 and into 2025.
- Merger expected to deliver meaningful benefits to communities, clients, and shareholders.
Challenges Ahead
- Decrease in net income available to common stockholders from the second quarter of 2024.
- Increase in the provision for credit losses.
- Increase in noninterest expenses.
- Decrease in net interest income.
Historical Earnings Impact
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Avg. Return Before/After Earnings
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