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Sep 30, 2025
ConnectOne Bancorp Q3 2025 Earnings Report
ConnectOne Bancorp reported strong third quarter 2025 results, driven by the successful integration of The First of Long Island Corporation (FLIC) merger, leading to significant increases in net income, EPS, and key profitability ratios.
Key Takeaways
ConnectOne Bancorp delivered a robust performance in the third quarter of 2025, with net income available to common stockholders reaching $39.5 million and diluted EPS of $0.78. This significant improvement was largely attributed to a $30.2 million reduction in the provision for credit losses, a $23.1 million increase in net interest income, and a $14.2 million increase in noninterest income, partially offset by increased income tax expense. The company's net interest margin expanded to 3.11%, and credit quality remained solid with nonperforming assets at 0.28%.
Net income available to common stockholders increased to $39.5 million, a substantial rise from $(21.8) million in the previous quarter and $15.7 million year-over-year.
Diluted earnings per share (EPS) reached $0.78, compared to $(0.52) in Q2 2025 and $0.41 in Q3 2024, benefiting from merger-related adjustments and non-recurring items.
Net interest margin expanded by 5 basis points sequentially to 3.11%, with a spot margin exceeding 3.20% at quarter-end, driven by improved loan and deposit mix post-merger.
Credit quality remained strong, with nonperforming assets as a percentage of total assets at 0.28% and annualized net loan charge-offs below 0.20%.
Forward Guidance
ConnectOne Bancorp is focused on maintaining strategic priorities, driving profitable growth, and creating sustainable long-term value for shareholders. The estimated effective tax rate for 2026 is approximately 28.0%.
Positive Outlook
- Healthy loan and deposit pipeline, further propelled by expansion on Long Island.
- Continued focus on strategic priorities to drive profitable growth.
- Commitment to creating sustainable long-term value for shareholders.
- Operating seamlessly as one organization post-merger, realizing positive financial benefits.
- Estimated effective tax rate for 2026 is approximately 28.0%.
Challenges Ahead
- No specific negative forward guidance was provided in the report.
- No specific negative forward guidance was provided in the report.
- No specific negative forward guidance was provided in the report.
Historical Earnings Impact
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