Connectone Bancorp, Inc. Reports Fourth Quarter and Full-Year 2024 Results; Declares Common and Preferred Dividends

Core Insights - ConnectOne Bancorp reported a net income of $18.9 million for Q4 2024, an increase from $15.7 million in Q3 2024 and $17.8 million in Q4 2023, with diluted earnings per share rising to $0.49 from $0.41 and $0.46 respectively [1][3] - The full-year net income for 2024 was $67.8 million, down from $81.0 million in 2023, with diluted earnings per share decreasing to $1.76 from $2.07 [1][3] - The bank's return on average assets improved to 0.84% in Q4 2024 from 0.70% in Q3 2024 and 0.79% in Q4 2023, while return on average tangible common equity rose to 8.27% from 6.93% and 8.18% respectively [1][3] Financial Performance - Operating net income for Q4 2024 was $20.2 million, compared to $16.1 million in Q3 2024 and $19.1 million in Q4 2023, with operating diluted earnings per share at $0.52, up from $0.42 and $0.49 [2][3] - Fully taxable equivalent net interest income for Q4 2024 was $64.7 million, a 6.3% increase from Q3 2024, attributed to a widening net interest margin of 2.86% [5][7] - Noninterest income decreased to $3.7 million in Q4 2024 from $4.7 million in Q3 2024 and $4.2 million in Q4 2023, primarily due to lower net gains on equity securities [8] Asset Quality and Credit Losses - The provision for credit losses was $3.5 million in Q4 2024, down from $3.8 million in Q3 2024 but up from $2.7 million in Q4 2023, with a full-year provision of $13.8 million compared to $8.2 million in 2023 [12] - Nonperforming assets increased to $57.3 million as of December 31, 2024, from $51.3 million in Q3 2024 and $52.5 million in Q4 2023, with a nonperforming assets ratio of 0.58% [13] Strategic Developments - The proposed merger with The First of Long Island Corporation is progressing, with expectations for completion in Q2 2025, which is anticipated to enhance ConnectOne's market presence [3] - The bank's loan portfolio grew by 2.0% quarter-over-quarter, and core deposits increased by 3.2%, reflecting strong operating momentum [3] Balance Sheet Highlights - Total assets as of December 31, 2024, were $9.880 billion, up from $9.856 billion a year earlier, while total deposits increased to $7.820 billion from $7.536 billion [14][15] - The company's total stockholders' equity rose to $1.242 billion as of December 31, 2024, compared to $1.217 billion in 2023, driven by an increase in retained earnings [15]