ConnectOne Bancorp Inc (NASDAQ:CNOB) Beats Q3 2025 Earnings and Revenue Estimates

ConnectOne Bancorp Inc (NASDAQ:CNOB) reported financial results for the third quarter of 2025 that surpassed analyst expectations on the top and bottom lines, though the market's initial reaction appeared muted, with the stock trading lower in pre-market activity.

Earnings and Revenue Performance

The company delivered a strong operational performance for the quarter, exceeding the forecasts set by Wall Street analysts. The results highlight the first full quarter of combined operations following the company's merger with The First of Long Island Corporation (FLIC), which was completed on June 1, 2025.

• Non-GAAP Earnings Per Share (EPS): Reported $0.70, beating the analyst estimate of $0.6862.
• Revenue: Reported $121.43 million, surpassing the estimated $110.13 million.

This performance translated into significant year-over-year growth. Net income available to common stockholders was $39.5 million, or $0.78 per diluted share, a substantial increase from $15.7 million, or $0.41 per diluted share, in the third quarter of 2024.

Market Reaction and Forward Estimates

Despite the earnings beat, the stock was down approximately 3.2% in pre-market trading. This suggests that investors may have been anticipating the strong results or are focusing on forward-looking concerns. The company did not provide a specific quantitative financial outlook in its press release to compare against existing analyst projections.

Looking ahead, analysts have established estimates for the upcoming periods:

• Q4 2025 Revenue Estimate: $114.01 million
• Full-Year 2025 Revenue Estimate: $376.94 million
• Full-Year 2025 EPS Estimate: $2.53

Key Operational Highlights from Q3 2025

The earnings release underscored several positive trends stemming from the strategic merger and core business execution.

• Net Interest Margin Expansion: The net interest margin widened to 3.11%, a 5 basis point increase from the previous quarter and a 44 basis point increase from the same period last year. Management noted the spot margin exceeded 3.20% at the end of the quarter.
• Strong Credit Quality: Credit trends remained solid, with nonperforming assets at 0.28% of total assets and annualized net charge-offs below 0.20%.
• Balance Sheet Growth: Total assets grew to $14.0 billion, primarily due to the FLIC merger. Loans and deposits also saw significant increases.
• Dividend Declaration: The Board of Directors declared a cash dividend of $0.18 per share on common stock, payable in December 2025.

Frank Sorrentino, ConnectOne’s Chairman and CEO, commented on the results, stating, “ConnectOne’s strong third quarter performance highlights the team’s disciplined execution and commitment to deepening client relationships while delivering on the Bank’s strategic objectives. With our first full quarter post-merger, we’re operating seamlessly as one organization, realizing the positive financial benefits of the combination and expanded footprint.”

Conclusion

ConnectOne Bancorp's third-quarter results demonstrate robust operational execution and successful integration of its recent merger, leading to earnings and revenue that exceeded expectations. The expansion of the net interest margin and solid credit quality are particularly notable strengths. The disconnect between the strong fundamental report and the negative pre-market price action will be a key point of discussion among investors as they assess the company's ability to meet future growth expectations in a dynamic economic environment.

For a more detailed look at historical earnings and future analyst estimates for ConnectOne Bancorp, you can review the data here.

Disclaimer: This article is for informational purposes only and does not constitute financial advice, a recommendation, or an offer or solicitation to buy or sell any securities. The content presented is based on data from publicly available sources and should not be relied upon as investment advice.