ConnectOne Bancorp, Inc. reported a net loss available to common stockholders of $(21.8) million for the second quarter of 2025, resulting in diluted earnings per share of $(0.52). This compares to net income of $18.7 million and diluted EPS of $0.49 in the first quarter of 2025. The net loss was primarily due to a $34.3 million increase in noninterest expenses, including $30.7 million in merger expenses, and a $32.2 million increase in provision for credit losses, which included a $27.4 million initial provision related to the FLIC merger.
Despite the GAAP loss, operating net income available to common stockholders was $23.1 million, with operating diluted earnings per share of $0.55, showing an increase from the prior quarter. Net interest income (FTE) rose significantly to $79.8 million, a 19.9% increase from Q1 2025, driven by a 13 basis-point widening of the net interest margin to 3.06%. This margin expansion was partly due to $3.3 million in accretion of purchase accounting adjustments and a 13.5% increase in average interest-earning assets from the FLIC merger.
The balance sheet reflected the merger's impact, with total assets reaching $13.9 billion, loans receivable at $11.2 billion, and total deposits at $11.3 billion. The loan-to-deposit ratio improved to 99%, and noninterest-bearing demand deposits exceeded 21% of total deposits. Credit quality metrics also improved, with nonperforming assets decreasing to 0.28% of total assets and nonaccrual loans to loans receivable falling to 0.35%.
The content on BeyondSPX is for informational purposes only and should not be construed as financial or investment advice. We are not financial advisors. Consult with a qualified professional before making any investment decisions. Any actions you take based on information from this site are solely at your own risk.