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Dec 31, 2025
ConnectOne Bancorp Q4 2025 Earnings Report
ConnectOne Bancorp, Inc. reported its financial results for the fourth quarter and full-year 2025, with net interest margin widening and performance metrics gaining momentum.
Key Takeaways
ConnectOne Bancorp, Inc. reported a net income of $38.0 million for the fourth quarter of 2025, with diluted earnings per share of $0.75. The company's net interest margin widened by 16 basis points to 3.27%, benefiting from stable interest-earning asset rates and decreased deposit costs. Total assets increased to $14.0 billion, and total deposits reached $11.2 billion, primarily due to the merger with FLIC. Credit trends remained solid, with nonperforming assets at 0.33% of total assets and annualized net loan charge-offs at 0.17%.
Net interest margin widened by 16 basis points to 3.27% in Q4 2025, driven by stable loan portfolio yields and a 14 basis-point decrease in average deposit costs.
Operating net income available to common stockholders was $42.0 million, with operating diluted EPS of $0.83, reflecting strong core earnings.
Total assets grew to $14.0 billion and total deposits to $11.2 billion, primarily due to the merger with FLIC.
Asset quality remained solid, with nonperforming assets at 0.33% of total assets and annualized net loan charge-offs at 0.17%.
Forward Guidance
ConnectOne Bancorp, Inc. anticipates its net interest margin to continue its upward trend in 2026, with decreasing deposit and borrowing costs and increasing loan yields. The effective tax rate for 2026 is estimated to be approximately 28.0%. The pipeline for SBA loans remains robust, with expected pretax gains exceeding $4 million during 2026.
Positive Outlook
- Net interest margin expected to continue upward trend in 2026.
- Deposit and borrowing costs are projected to decrease.
- Loan yields are expected to increase.
- Robust pipeline for SBA loans, with expected pretax gains exceeding $4 million in 2026.
- Continued realization of incremental synergies across the franchise.
Challenges Ahead
- Effective tax rate for 2026 estimated at 28.0%, reflecting statutory rates and permanent differences.
- Branch rationalization to result in 5 closures in Q1 2026.
- Potential impact of macroeconomic forecasts on credit losses.
Historical Earnings Impact
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