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Dec 31, 2024
ConnectOne Bancorp Q4 2024 Earnings Report
Reported net income increase, margin expansion, and growth in loans and core deposits.
Key Takeaways
ConnectOne Bancorp reported a strong fourth quarter in 2024, with a significant increase in net income available to common stockholders, margin expansion, and growth in loans and core deposits. The company is also progressing with its merger with The First of Long Island Corporation.
Net income available to common stockholders increased by 20.5% quarter-over-quarter and 6.2% year-over-year.
Loan portfolio grew by 2.0% and core deposits grew by 3.2% quarter-over-quarter.
Net interest margin improved by nearly 20 basis points due to a decrease in the average costs of deposits.
Merger with The First of Long Island Corporation is expected to close in the second quarter of 2025.
Forward Guidance
ConnectOne expects the net interest margin, excluding any non-operating items, is expected to increase to more than 2.90% in the first quarter of 2025 as a result of further improvement in the cost of funds and the deployment of excess cash-on-hand. The projected tax rate for 2025 is in the range of 26%-27%.
Positive Outlook
- Net interest margin expected to increase to more than 2.90% in Q1 2025.
- Improvement in the cost of funds.
- Deployment of excess cash-on-hand.
- Strong operating momentum bolstered by improving industry fundamentals.
- Favorable economic conditions.
Challenges Ahead
- Projected tax rate for 2025 is in the range of 26%-27%.
- Factors which could have a material adverse effect on the operations of the Company and its subsidiaries include, but are not limited to, those factors set forth in Item 1A – Risk Factors of the Company’s Annual Report on Form 10-K.
- Noninterest income decreased by $1.0 million compared to the third quarter of 2024 due to a decrease in net gains on equity securities and BOLI income.
Historical Earnings Impact
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Avg. Return Before/After Earnings
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