ConnectOne Bancorp Q1 net income rises as margins expand

ConnectOne Bancorp

23/04/2026 12:18

Overview

US commercial bank's Q1 net income and EPS rose yr/yr, driven by merger with FLIC

Company declared an 8.3% increase in quarterly common dividend

ConnectOne repurchased 90,000 shares in Q1; asset quality metrics improved

Outlook

Company expects continued net interest margin expansion in coming quarters

ConnectOne sees robust loan growth and productivity gains through merger synergies and AI workflow

Company expects to return to pre-merger tangible book value per share within one quarter

Result Drivers

NET INTEREST MARGIN - Sequential increase in net interest income was driven by a 12 basis-point widening of the net interest margin, benefiting from higher yields on interest-earning assets and lower deposit costs

MERGER IMPACT - Year-over-year changes in income and expenses were primarily due to the merger with FLIC, which increased interest-earning assets, noninterest income, and noninterest expenses

COST CONTROL & SYNERGIES - Expenses remained well-controlled as the company leveraged merger synergies and increased use of AI workflow to drive productivity gains

Company press release: ID:nGNX43yBRt

Key Details

Metric
Beat/Miss
Actual
Consensus Estimate
Q1 EPS
$0.72
Q1 Net Interest Income
$108.80 mln
Q1 Loan Loss Provision
$5.20 mln


Analyst Coverage

The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 5 "strong buy" or "buy", no "hold" and no "sell" or "strong sell"

The average consensus recommendation for the banks peer group is "buy"

Wall Street's median 12-month price target for ConnectOne Bancorp Inc is $31.00, about 10.7% above its April 22 closing price of $28.01

The stock recently traded at 9 times the next 12-month earnings vs. a P/E of 8 three months ago

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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)