ConnectOne Reports Q4 Net Interest Income of $107.8 Million
Fully taxable equivalent net interest income for the fourth quarter of 2025 was $107.8 million, an increase of $4.6 million, or 4.5%, from the third quarter of 2025. As of December 31, 2025, the Company's tangible common equity ratio and tangible book value per share were 8.62% and $23.52, respectively, compared to 9.49% and $23.92, respectively, as of December 31, 2024. Reports CET1 ratio 10.24%. "I'm pleased with ConnectOne's strong fourth quarter performance underscored by robust core earnings and expanding margins," stated Frank Sorrentino, CEO. "The Bank's net interest margin widened by 16 basis points during the quarter, benefiting from an 18 basis-point improvement in our cost of interest-bearing deposits combined with virtually no change in our loan portfolio yield. Our net interest margin is expected to continue its upward trend during 2026 with deposit and borrowing costs decreasing and loan yields increasing. Loans and client deposits, which exclude a reduction of over $280 million of brokered deposits during the quarter, both grew sequentially by more than 5% annualized, while credit trends remained stable. Our nonperforming asset ratio was just 0.33%, while annualized net charge-offs were 0.17%. Performance metrics are gaining momentum, with operating returns on assets advancing by nearly 20 basis points to 1.24%, and average tangible common equity advancing by 172 basis points to 14.27%. Further, our tangible book value per share increased by an additional 3% during the quarter to $23.52. Operationally, with the merger integration behind us, we're continuing to realize incremental synergies across the franchise. ConnectOne's scalable operating model, leading technology and robust business offerings are now driving both greater efficiency and accelerated growth. 2025 was a very strong year for ConnectOne and we enter 2026 with solid operating momentum. We look forward to building upon our client-first culture and relationship-driven strategy to drive growth and long-term value creation for all stakeholders."
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ConnectOne Bancorp Q4 2025 Earnings Call Highlights
- Asset Growth: ConnectOne Bancorp achieved $14 billion in assets and surpassed a $1.4 billion market cap in 2025, demonstrating the strength of its business model and the value of its client-first culture.
- Deposit and Loan Growth: Client deposits increased by approximately 5% on an annualized basis in the second half of 2025, with loan portfolio growth at a similar rate, although offset by higher payoffs due to refinancing.
- Operating Earnings Increase: Operating earnings for the quarter rose 18.6% sequentially, driving quarterly return on assets to 1.24%, which enhances the company's overall financial performance.
- Future Outlook: The company expects net interest margin to rise by 5 basis points in Q1 2026, with loan portfolio growth anticipated in the 3% to 5% range, and management is optimistic about future capital deployment and dividend increases.
ConnectOne Bancorp Declares Quarterly Dividend of $0.18
- Quarterly Dividend Announcement: ConnectOne Bancorp declares a quarterly dividend of $0.18 per share, consistent with previous distributions, indicating the company's stable cash flow and profitability.
- Dividend Yield: The forward yield of 2.59% provides investors with a relatively stable return, enhancing market attractiveness for its stock.
- Payment Schedule: The dividend will be payable on March 2, with a record date of February 13 and an ex-dividend date also on February 13, ensuring shareholders receive their earnings promptly.
- Financial Health Indicators: Based on ConnectOne Bancorp's historical earnings data and dividend scorecard, the company's financial condition appears robust, and its ongoing dividend policy reflects a commitment to shareholders and confidence in future growth.
ConnectOne Bancorp Reports Strong Q4 Earnings
- Earnings Performance: ConnectOne Bancorp reported a GAAP EPS of $0.75 for Q4, reflecting a significant improvement over the previous year, which enhances investor confidence in the company's profitability.
- Revenue Growth: The company achieved revenues of $110.3 million in Q4, marking a 69.8% year-over-year increase, indicating a strengthening competitive position that may attract more investor interest.
- Financial Health: With substantial increases in both revenue and earnings, ConnectOne Bancorp's financial condition is further solidified, likely providing stronger funding support for future expansions and investments.
- Dividend Performance: The report also highlighted the company's dividend scorecard, demonstrating its commitment to shareholder returns, which may appeal to investors seeking stable income.
Elevated Volatility in US Options Market Post Earnings
- Options Market Volatility: The options market is experiencing heightened volatility due to the upcoming Federal Reserve policy decision, with some stocks showing implied volatility nearing 50% ahead of earnings reports.
- Capitol Federal Financial: CFFN is set to report earnings on January 28, with analysts expecting earnings per share of 15 cents and revenue of $57.51 million, reflecting a significant implied move of 48.48%.
- Other Bank Stocks: Stocks like First Financial Bancorp and Provident Financial Services are also seeing implied moves exceeding 39%, indicating cautious market sentiment regarding their earnings performance.
- Market Reaction: Overall, the market is reacting strongly to the impending earnings reports, particularly among regional banks, highlighting investor concerns over future earnings uncertainty and potential risks.
Leading Analyst Mayo Predicts Deregulation Will Ignite Bank M&A Surge: Here Are His Acquisition Picks
Deregulation and M&A Boom: Wells Fargo analyst Mike Mayo suggests that investors are overlooking a potential surge in bank mergers and acquisitions driven by a favorable regulatory environment, which he describes as the best in three decades.
Regulatory Changes: Mayo highlights that upcoming regulatory changes, including faster deal approvals and reduced scrutiny, could enhance banks' ability to merge and acquire, with expectations of continued deregulation through 2028.
Performance Trends: Historically, banks have outperformed during periods of deregulation, similar to trends observed in the late 1990s, indicating a potential for significant growth in the sector.
Top Takeover Candidates: Mayo identified several banks as likely takeover targets based on a comprehensive screening process, with top candidates including BankUnited, Banc of California, and First Horizon, among others.
ConnectOne Bancorp's Series A Preferred Stock Exceeds 5.5% Yield Threshold
Stock Performance: ConnectOne Bancorp Inc's Dep Shares (CNOBP) are up approximately 0.5% while the common shares (CNOB) are down about 0.1% in Friday trading.
Dividend History: A chart detailing the historical dividend payments for ConnectOne Bancorp Inc's Dep Shares 5.25% Reset Rate Non-Cumul Preferred Stock Ser A is provided.
Comparison Chart: A chart comparing the one-year performance of CNOBP shares against CNOB shares is included.
Author's Opinion Disclaimer: The views expressed in the article are those of the author and do not necessarily reflect the opinions of Nasdaq, Inc.
ConnectOne Bancorp Q4 2025 Earnings Call Highlights
- Asset Growth: ConnectOne Bancorp achieved $14 billion in assets and surpassed a $1.4 billion market cap in 2025, demonstrating the strength of its business model and the value of its client-first culture.
- Deposit and Loan Growth: Client deposits increased by approximately 5% on an annualized basis in the second half of 2025, with loan portfolio growth at a similar rate, although offset by higher payoffs due to refinancing.
- Operating Earnings Increase: Operating earnings for the quarter rose 18.6% sequentially, driving quarterly return on assets to 1.24%, which enhances the company's overall financial performance.
- Future Outlook: The company expects net interest margin to rise by 5 basis points in Q1 2026, with loan portfolio growth anticipated in the 3% to 5% range, and management is optimistic about future capital deployment and dividend increases.
ConnectOne Bancorp Declares Quarterly Dividend of $0.18
- Quarterly Dividend Announcement: ConnectOne Bancorp declares a quarterly dividend of $0.18 per share, consistent with previous distributions, indicating the company's stable cash flow and profitability.
- Dividend Yield: The forward yield of 2.59% provides investors with a relatively stable return, enhancing market attractiveness for its stock.
- Payment Schedule: The dividend will be payable on March 2, with a record date of February 13 and an ex-dividend date also on February 13, ensuring shareholders receive their earnings promptly.
- Financial Health Indicators: Based on ConnectOne Bancorp's historical earnings data and dividend scorecard, the company's financial condition appears robust, and its ongoing dividend policy reflects a commitment to shareholders and confidence in future growth.
ConnectOne Bancorp Reports Strong Q4 Earnings
- Earnings Performance: ConnectOne Bancorp reported a GAAP EPS of $0.75 for Q4, reflecting a significant improvement over the previous year, which enhances investor confidence in the company's profitability.
- Revenue Growth: The company achieved revenues of $110.3 million in Q4, marking a 69.8% year-over-year increase, indicating a strengthening competitive position that may attract more investor interest.
- Financial Health: With substantial increases in both revenue and earnings, ConnectOne Bancorp's financial condition is further solidified, likely providing stronger funding support for future expansions and investments.
- Dividend Performance: The report also highlighted the company's dividend scorecard, demonstrating its commitment to shareholder returns, which may appeal to investors seeking stable income.
Elevated Volatility in US Options Market Post Earnings
- Options Market Volatility: The options market is experiencing heightened volatility due to the upcoming Federal Reserve policy decision, with some stocks showing implied volatility nearing 50% ahead of earnings reports.
- Capitol Federal Financial: CFFN is set to report earnings on January 28, with analysts expecting earnings per share of 15 cents and revenue of $57.51 million, reflecting a significant implied move of 48.48%.
- Other Bank Stocks: Stocks like First Financial Bancorp and Provident Financial Services are also seeing implied moves exceeding 39%, indicating cautious market sentiment regarding their earnings performance.
- Market Reaction: Overall, the market is reacting strongly to the impending earnings reports, particularly among regional banks, highlighting investor concerns over future earnings uncertainty and potential risks.
Leading Analyst Mayo Predicts Deregulation Will Ignite Bank M&A Surge: Here Are His Acquisition Picks
Deregulation and M&A Boom: Wells Fargo analyst Mike Mayo suggests that investors are overlooking a potential surge in bank mergers and acquisitions driven by a favorable regulatory environment, which he describes as the best in three decades.
Regulatory Changes: Mayo highlights that upcoming regulatory changes, including faster deal approvals and reduced scrutiny, could enhance banks' ability to merge and acquire, with expectations of continued deregulation through 2028.
Performance Trends: Historically, banks have outperformed during periods of deregulation, similar to trends observed in the late 1990s, indicating a potential for significant growth in the sector.
Top Takeover Candidates: Mayo identified several banks as likely takeover targets based on a comprehensive screening process, with top candidates including BankUnited, Banc of California, and First Horizon, among others.
ConnectOne Bancorp's Series A Preferred Stock Exceeds 5.5% Yield Threshold
Stock Performance: ConnectOne Bancorp Inc's Dep Shares (CNOBP) are up approximately 0.5% while the common shares (CNOB) are down about 0.1% in Friday trading.
Dividend History: A chart detailing the historical dividend payments for ConnectOne Bancorp Inc's Dep Shares 5.25% Reset Rate Non-Cumul Preferred Stock Ser A is provided.
Comparison Chart: A chart comparing the one-year performance of CNOBP shares against CNOB shares is included.
Author's Opinion Disclaimer: The views expressed in the article are those of the author and do not necessarily reflect the opinions of Nasdaq, Inc.
