ConnectOne Q4 net income rises on higher interest income

Reuters
01/29
ConnectOne Q4 net income rises on higher interest income

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

For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.

(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.)

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