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

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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