ConnectOne Bancorp, Inc. SEC 10-Q Report
ConnectOne Bancorp, Inc. has released its Form 10-Q report for Q3 2025, highlighting its financial performance and the acquisition of The First of Long Island Corporation (FLIC). Key financials include total interest income of $270.8 million and a net income loss of $51,000. The merger expanded ConnectOne's branch network and loan portfolio, enhancing its market presence in Long Island and New York City. The company expects continued growth and operational efficiencies from this acquisition, while managing employee benefit costs through a frozen pension plan effective September 30, 2025.
ConnectOne Bancorp, Inc., a regional community banking services provider, has released its Form 10-Q report for the third quarter of 2025. The report details the company's financial performance and significant business developments, including the recent acquisition of The First of Long Island Corporation (FLIC). This acquisition has notably expanded ConnectOne's branch network and loan portfolio, positioning the company for future growth and operational efficiencies.
Financial Highlights
- Total Interest Income: $270.8 million, reflecting an increase from $259.6 million in the prior year, driven by higher interest and fees on loans.
- Total Interest Expense: $126.2 million, a decrease from $137.9 million in the prior year, indicating improved cost management in interest-bearing liabilities.
- Net Interest Income: $144.6 million, up from $121.7 million, highlighting effective interest rate management and loan growth.
- Net Income: $(51) thousand, a significant decrease from $36.3 million, primarily due to increased provision for credit losses and merger expenses.
- Net Income Available to Common Stockholders: $(3.1) million, compared to $33.2 million in the previous year, impacted by preferred dividends and merger-related costs.
- Basic Earnings Per Common Share: $(0.08), down from $0.87, reflecting the net loss and increased share count post-merger.
- Diluted EPS: $(0.08), compared to $0.86, consistent with the basic EPS decline.
Business Highlights
- Segment Reporting: ConnectOne Bancorp, Inc. operates solely in the financial services industry, providing a range of regional community banking services to commercial and retail clients. The company's operations are primarily focused on its banking operations, which include loans, investments, and deposits as key revenue streams.
- Business Combination: On June 1, 2025, ConnectOne Bancorp completed the acquisition of The First of Long Island Corporation (FLIC), significantly expanding its branch network with 36 new locations in Nassau and Suffolk Counties of Long Island and the boroughs of New York City. This merger is expected to bring synergies and economies of scale.
- Loan Portfolio Expansion: The acquisition of FLIC added a substantial volume of loans to ConnectOne's portfolio, with a notable increase in commercial real estate and residential real estate loans. The company continues to focus on securing loans with various types of collateral, including business assets and real estate.
- Geographical Expansion: The merger with FLIC has expanded ConnectOne's geographical footprint into Long Island and New York City, enhancing its market presence and customer base in these regions.
- Employee Benefit Plans: Following the FLIC merger, ConnectOne acquired a defined benefit pension plan, which will be frozen effective September 30, 2025. This move aligns with the company's strategy to manage employee benefit costs effectively.
- Future Outlook: ConnectOne Bancorp anticipates continued growth and integration benefits from the FLIC acquisition, with expectations of enhanced operational efficiencies and expanded market reach. The company remains focused on leveraging its expanded branch network and customer base to drive future growth.
SEC Filing: ConnectOne Bancorp, Inc. [ CNOB ] - 10-Q - Aug. 11, 2025
