ConnectOne Bancorp(US:CNOB)2026-01-29 12:30Financial Performance - Net income available to common stockholders for Q4 2025 was $38.0 million, down from $39.5 million in Q3 2025, but up from $18.9 million in Q4 2024[2]. - Diluted earnings per share for Q4 2025 were $0.75, compared to $0.78 in Q3 2025 and $0.49 in Q4 2024[2]. - Net income for the year ended December 31, 2025, was $80,443 thousand, compared to $73,793 thousand in 2024, indicating an increase of about 9%[25]. - Basic earnings per common share increased to $1.64 for the year ended December 31, 2025, from $1.77 in 2024, showing a decrease of approximately 7.3%[25]. - Operating net income for Q4 2025 was $43,531,000, an increase from $37,018,000 in Q3 2025, representing a growth of 17.0%[30]. Asset and Deposit Growth - Total assets increased to $14.0 billion as of December 31, 2025, compared to $9.9 billion a year earlier, primarily due to the merger with FLIC[16]. - Total assets as of December 31, 2025, were $14,002,700, a slight decrease from $14,023,585 as of September 30, 2025[27]. - Total deposits reached $11,240,615 thousand in 2025, up from $7,820,114 thousand in 2024, representing an increase of about 43.5%[24]. - Total deposits decreased to $11,240,615 as of December 31, 2025, from $11,369,295 as of September 30, 2025, a decline of 1.14%[27]. Loan and Credit Quality - Loans and client deposits grew sequentially by more than 5% annualized, excluding a reduction of over $280 million in brokered deposits[5]. - Nonperforming assets as a percentage of total assets were 0.33% as of December 31, 2025, down from 0.58% a year earlier[14]. - The allowance for credit losses increased to $154.3 million as of December 31, 2025, reflecting the FLIC merger[15]. - Provision for credit losses decreased to $47,000 thousand in 2025 from $13,800 thousand in 2024, indicating a reduction of about 65.5%[25]. - Net loan charge-offs for the quarter were $4,777 thousand, a decrease from $5,136 thousand in the prior quarter[32]. Interest Income and Margin - Net interest margin widened by 16 basis points to 3.27% in Q4 2025, benefiting from a 4.5% increase in fully taxable equivalent net interest income to $107.8 million[8]. - Interest income for the year ended December 31, 2025, was $644,868 thousand, up from $517,889 thousand in 2024, reflecting a growth of approximately 24.5%[25]. - Net interest income for Q4 2025 was $106,595,000, an increase from $102,017,000 in Q3 2025, representing a growth of 5.6%[28]. - Net interest margin improved to 3.27% in Q4 2025 from 3.11% in Q3 2025, indicating better asset utilization[30]. Noninterest Income and Expenses - Noninterest income for Q4 2025 was $6.0 million, significantly lower than $19.4 million in Q3 2025, primarily due to nonrecurring items in the previous quarter[10]. - Noninterest income for the year ended December 31, 2025, was $35,065 thousand, compared to $16,728 thousand in 2024, reflecting a growth of approximately 109%[25]. - Total noninterest income dropped significantly to $6,020,000 in Q4 2025 from $19,409,000 in Q3 2025, a decline of 69.0%[28]. - Total noninterest expenses decreased to $56,946,000 in Q4 2025 from $58,673,000 in Q3 2025, a reduction of 2.9%[30]. Dividends and Tax Rate - The Company declared a cash dividend of $0.18 per share on common stock, payable on March 2, 2026[7]. - The effective tax rate for Q4 2025 was 26.0%, with an estimated rate of approximately 28.0% for 2026[12]. Strategic Focus - The company plans to continue focusing on expanding its fintech subsidiary, BoeFly, Inc., to enhance its service offerings in the franchise space[21]. - ConnectOne Bancorp, Inc. emphasizes the importance of non-GAAP financial measures to provide additional insights into its operating performance[26].