ConnectOne Bancorp Inc (NASDAQ:CNOB) reported mixed second-quarter 2025 results, with revenue exceeding analyst expectations but earnings per share (EPS) falling slightly short. The market reaction has been cautiously positive in pre-market trading, with shares up approximately 1.6% following the release.
Key Financial Highlights vs. Estimates
Revenue: Reported at $84.07 million, surpassing the consensus estimate of $76.32 million. This represents a strong top-line performance, likely driven by contributions from the recently completed merger with The First of Long Island Corporation (FLIC).
EPS: Came in at $0.55, marginally below the estimated $0.5569. While the miss is minor, it contrasts with the company’s net loss available to common stockholders of $(21.8) million, which includes merger-related costs and integration expenses.
Full-Year Estimates: Analysts project revenue of $364.4 million and EPS of $2.51 for 2025. The Q2 beat on revenue suggests potential upside to full-year forecasts if momentum continues.
Market Reaction & Performance Context
The pre-market gain of ~1.6% indicates investor optimism, likely fueled by the revenue beat and the completion of the FLIC merger. However, the stock has been relatively flat over the past week (-1.6%) and month (+4.8%), reflecting uncertainty around integration challenges and profitability post-merger.
Press Release Summary
Merger Impact: The FLIC acquisition closed on June 1, 2025, contributing one month of activity to Q2 results. Historical comparisons are skewed due to the merger.
Profitability Metrics: Return on average assets and tangible common equity turned negative in Q2 (-0.73% and -8.42%, respectively), compared to positive figures in prior quarters. This reflects one-time merger costs rather than underlying operational weakness.
Dividends: The company declared both common and preferred dividends, signaling confidence in liquidity despite the quarterly loss.
Looking Ahead
Analysts expect Q3 2025 revenue of $109.42 million and EPS of $0.696. The company’s ability to integrate FLIC smoothly will be critical in meeting or exceeding these projections.