ConnectOne Bancorp reported net income of $39.5 million for the three months ended September 30 2025, a turnaround from the $21.8 million loss in the second quarter and a rise from the $15.7 million earned in the same period a year earlier. Diluted earnings per share climbed to $0.78, up from a loss of $0.52 in Q2 and from $0.41 in Q3 2024.
Net interest margin widened to 3.11 percent, a 5‑basis‑point increase from 3.06 percent in Q2 and a 44‑basis‑point jump from 2.67 percent in Q3 2024. Net interest income rose $23.3 million, while noninterest income increased $14.2 million versus Q2 and $14.7 million versus Q3 2024, reflecting stronger fee‑generating activity.
Deposits grew to $11.4 billion, up 46 percent from $7.8 billion a year earlier, and loans expanded to $11.3 billion, a 36 percent rise from $8.3 billion in Q3 2024.
Total assets reached $14.0 billion, up 41 percent from $9.9 billion a year earlier. The allowance for credit losses was $156.5 million, up $73.8 million, largely due to the $27.4 million initial provision related to the merger with The First of Long Island Corporation recorded in Q2. Nonperforming assets were 0.28 percent of total assets, down from 0.58 percent in Q3 2024. The provision for credit losses fell to $5.5 million in Q3 from $35.7 million in Q2, reflecting the earlier merger‑related provision.
The board declared a cash dividend of $0.18 per common share, payable December 1 2025 to shareholders of record on November 14 2025.
The results are the first full‑quarter performance after the merger closed on June 1 2025. The combined entity benefits from a larger loan and deposit base, a lower average cost of deposits that helped widen the net interest margin, and a strong credit profile with nonperforming assets at 0.28 percent. Management highlighted disciplined integration, a focus on profitable growth, and the positive impact of nonrecurring items such as a $6.6 million Employee Retention Tax Credit and a $3.5 million pension plan curtailment gain, partially offset by $2.9 million in merger and restructuring expenses.
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