ConnectOne Bancorp has reported exceptional third-quarter 2025 results, significantly surpassing investor expectations across key financial metrics. The company’s earnings per share reached $0.78, representing substantial improvement over both the previous quarter and the same period last year.
Strong Fundamentals Drive Outstanding Results
The financial institution demonstrated remarkable strength in its core operations, with net interest income surging 29.3% to $103.2 million. Revenue performance was equally impressive, reaching $121.43 million and comfortably exceeding projections of $111.18 million. The net interest margin expanded to 3.11%, reflecting improved profitability.
Credit quality remains a standout feature, with non-performing assets maintaining an exceptionally low level of just 0.28%. This robust asset quality provides a solid foundation for future growth while minimizing risk exposure.
Strategic Acquisition Bears Fruit
ConnectOne’s operational earnings per share of $0.70 outperformed analyst estimates by a notable 5 cents. The successful integration of The First of Long Island Corporation acquisition is delivering benefits ahead of schedule, contributing meaningfully to the quarter’s strong performance.
Should investors sell immediately? Or is it worth buying ConnectOne?
Management expressed confidence during the earnings call, outlining additional expansion initiatives. The company projects a net interest margin of 3.25% for the fourth quarter and anticipates loan growth of 5% for 2026.
Shareholder Returns and Outlook
The institution’s dividend policy underscores management’s belief in sustainable earnings capacity. The quarterly distribution of $0.18 per share marks the fourth consecutive year of dividend increases. At the current share price of $23.91, this represents an attractive 3.0% dividend yield.
Technical indicators suggest additional upside potential for the stock, while the fundamental picture provides more than adequate support for continued strength. The combination of operational excellence, strategic execution, and shareholder-friendly policies positions ConnectOne for sustained success.
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