ConnectOne Bancorp Reports $20.2 Million Net Income in Q1 2025, Announces Merger with The First of Long Island Corporation

ConnectOne Bancorp, Inc. reported a net income of $20.2 million for the first quarter of 2025, an increase from $17.2 million in the same period last year. This translates to earnings per share of $0.49, up from $0.41 in the prior year. The growth in profitability was driven by a $5.5 million increase in net interest income, which rose to $65.8 million, alongside a decrease in the provision for credit losses, which fell to $3.5 million from $4.0 million. Noninterest income also saw a modest increase to $4.5 million, compared to $3.8 million in the previous year.

In terms of financial position, total assets decreased to $9.76 billion as of March 31, 2025, down from $9.88 billion at the end of 2024. The decline was primarily attributed to a reduction in cash and cash equivalents, which fell to $292.6 million from $356.5 million. Total loans receivable also decreased to $8.2 billion, down from $8.3 billion, reflecting a strategic decision to manage the loan portfolio amid changing market conditions. The allowance for credit losses on loans was reported at $82.4 million, slightly lower than the $82.7 million recorded at the end of 2024.

Strategically, ConnectOne Bancorp is in the process of merging with The First of Long Island Corporation, a move that is expected to enhance its market presence and operational scale. Shareholders from both companies approved the merger, which is valued at approximately $288 million. The combined entity is projected to have total assets of around $14 billion, significantly increasing ConnectOne's footprint in the New Jersey and New York markets.

Operationally, the bank's total deposits decreased to $7.77 billion from $7.82 billion, with noninterest-bearing deposits declining by $102.8 million. However, savings deposits increased by $108.4 million, indicating a shift in customer preferences. The bank's employee headcount remained stable, supporting its operational capabilities as it navigates the merger process. The company continues to focus on maintaining a strong capital position, with a tangible common equity ratio of 9.73% as of March 31, 2025.

Looking ahead, ConnectOne Bancorp expressed optimism about its growth trajectory, bolstered by the upcoming merger and ongoing efforts to enhance its product offerings. The management anticipates that the merger will create synergies that will drive future profitability and market share expansion. However, the company remains vigilant regarding potential economic challenges, including interest rate fluctuations and competitive pressures in the banking sector.