ConnectOne Bancorp, Inc. has reported its third quarter 2025 results, showcasing a notable improvement in various financial metrics compared to the second quarter of 2025 and the third quarter of 2024.
Net income available to common stockholders for the third quarter of 2025 was $39.5 million, a significant increase from $(21.8) million in the second quarter of 2025 and $15.7 million in the third quarter of 2024. Diluted earnings per share also saw a substantial improvement, standing at $0.78 for the third quarter of 2025, compared to $(0.52) for the second quarter of 2025 and $0.41 for the third quarter of 2024.
Operating net income available to common stockholders was $35.5 million for the third quarter of 2025, marking a noticeable increase from $23.1 million for the second quarter of 2025 and $16.1 million for the third quarter of 2024. Operating diluted earnings per share also showed a positive trend, reaching $0.70 for the third quarter of 2025, up from $0.55 for the second quarter of 2025 and $0.42 for the third quarter of 2024.
The company attributed the increase in net income and earnings to a $30.2 million reduction in the provision for credit losses compared to the second quarter of 2025. Additionally, there was a $23.1 million increase in net interest income, a $15.0 million decrease in noninterest expenses, and a $14.2 million increase in noninterest income for the third quarter of 2025 compared to the second quarter of 2025. However, the increase in income tax expense of $21.3 million partially offset these positive changes.
ConnectOne Bancorp's net interest margin expanded to 3.11% during the third quarter of 2025, a five basis point increase from the previous quarter. Furthermore, the company reported a healthy credit quality with nonperforming assets at just 0.28% and annualized net charge-offs below 0.20%. The company's total risk-based capital ratio stood at 13.88% and the tangible common equity ratio at 8.36%.
The company's total assets increased to $14.0 billion as of September 30, 2025, compared to $9.9 billion as of December 31, 2024, primarily due to the merger with the First of Long Island Corporation. Loans receivable and total deposits also saw significant increases as a result of the merger.
ConnectOne Bancorp declared a cash dividend on both its common stock and outstanding preferred stock, with a cash dividend on common stock of $0.18 per share and a dividend of $0.328125 per depositary share for the company’s 5.25% fixed rate reset non-cumulative perpetual preferred stock, series A.
The company's press release also included a detailed breakdown of its operating results, asset quality, and selected balance sheet items, providing a comprehensive overview of its financial performance and position.
ConnectOne Bancorp, Inc. uses non-GAAP financial measures alongside GAAP measures to provide meaningful information to investors in understanding its operating performance and trends. These non-GAAP measures have inherent limitations and should not be considered in isolation or as a substitute for GAAP results. Reconciliations of non-GAAP financial measures to the comparable GAAP measures are provided in the accompanying tables.
As a result of these announcements, the company's shares have moved -1.49% on the market, and are now trading at a price of $23.87. Check out the company's full 8-K submission here.
