ConnectOne Q4 net income rises on higher interest income

ConnectOne Bancorp

29/01/2026 12:08

Overview

U.S. commercial bank's Q4 net income rises yr/yr, driven by higher net interest income

Diluted EPS for Q4 2025 was $0.75, down from $0.78 in Q3 2025

Company to close five branches in Q1 2026

Outlook

ConnectOne expects net interest margin to continue upward trend in 2026

Company anticipates pretax gains exceeding $4 mln from SBA loans in 2026

ConnectOne sees stable credit trends with nonperforming asset ratio at 0.33%

Result Drivers

NET INTEREST INCOME - Q4 net interest income rose $4.6 mln from Q3 2025 due to a 16 basis-point widening of the net interest margin

MERGER IMPACT - Merger with FLIC contributed to a 43.6% increase in average interest-earning assets

NONINTEREST INCOME - Q4 noninterest income increased $2.3 mln yr/yr, driven by higher deposit, loan, and BOLI income

Key Details

Metric
Beat/Miss
Actual
Consensus Estimate
Q4 EPS
$0.75
Q4 Net Interest Income
$106.60 mln
Q4 Loan Loss Provision
$2.30 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 $30.00, about 7.7% above its January 28 closing price of $27.85

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

Press Release: ID:nGNXsGS29

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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.)