Connectone Bancorp Stock Earnings Reports

ConnectOne reported a strong third quarter 2025 as the recently completed merger is fully integrated and driving accelerating performance. Key operational highlights: systems integration completed quickly after legal close; core deposits and loans grew organically (deposit growth exceeded $600 million sequentially), loan originations were $465M for the quarter, and the loan pipeline is healthy across C&I, CRE, construction, SBA and residential mortgage. Credit metrics remain strong (NPAs 0.28%, annualized net charge-offs <0.20%, 30‑day delinquencies 0.08%). Net interest margin (NIM) expanded to 3.11% (spot >3.20% at quarter end) and management expects Q4 NIM ~3.25%+; they estimate that absent two temporary items (redemption timing of $75M high-rate subordinated debt and elevated average cash balances), Q3 NIM would have exceeded 3.50%. Noninterest income was boosted by two one-time items (~$10M pretax): a $6.6M employee retention tax credit and a $3.5M pension curtailment gain. Recurring noninterest income is roughly $7M/quarter and is expected to grow, notably from SBA (BoeFly integration) and mortgage activities. Expense run-rate (net of merger/ restructuring) is guided to ~$55–56M for Q4 and ~$56–57M per quarter for 1H26. Capital and tangible book value strengthened; tangible common equity at holding company rose to 8.4% with a goal toward 9%. Management expects room in 2026 for a dividend increase and opportunistic buybacks depending on growth. Longer-term outlook: management reiterated 2026 profitability targets (ROA ~1.2% and ROTCE ~15%), sees material loan repricing opportunity (~$1B repricing in 2026 and another ~$1B in 2027), and forecasts continued margin expansion (management’s target range ~3.40–3.50% by end of next year).