ConnectOne Bancorp, Inc. reported a net income of $67.8 million for the fiscal year ending December 31, 2024, reflecting a decrease of 16.3% compared to $81.0 million in 2023. The diluted earnings per share also fell to $1.76 from $2.07 in the previous year. The decline in profitability was attributed to a decrease in net interest income, which dropped by $7.8 million primarily due to a contraction in the net interest margin, which fell to 2.72% from 2.82%. Despite a slight increase in average interest-earning assets, the overall financial performance was impacted by rising interest expenses and increased provisions for credit losses.
In terms of operational changes, ConnectOne Bancorp is in the process of merging with The First of Long Island Corporation, a transaction expected to close in the first half of 2025, pending regulatory approvals. This merger is anticipated to create a combined entity with approximately $14 billion in total assets. The company has also been investing in technology and infrastructure, which contributed to a $7.8 million increase in noninterest expenses, driven by higher information technology costs and merger-related expenses.
As of December 31, 2024, ConnectOne Bancorp's total assets stood at $9.88 billion, a modest increase from $9.86 billion in 2023. Total loans decreased slightly to $8.28 billion from $8.35 billion, while total deposits rose to $7.82 billion, up from $7.54 billion. The bank's allowance for credit losses increased to $82.7 million, reflecting a proactive approach to managing credit risk amid changing economic conditions. The company reported a total of 489 full-time employees as of the end of 2024, with a focus on maintaining a skilled workforce to support its growth strategy.
Looking ahead, ConnectOne Bancorp expressed optimism about its growth trajectory, particularly with the upcoming merger, which is expected to enhance its market presence and operational efficiencies. However, the company acknowledged potential challenges, including rising interest rates and competitive pressures in the banking sector, which could impact its net interest margin and overall financial performance. The management remains committed to navigating these challenges while continuing to invest in technology and customer service to drive future growth.
About ConnectOne Bancorp, Inc.
ConnectOne Bancorp, Inc. is a bank holding company primarily operating through its subsidiary, ConnectOne Bank, a commercial bank serving small and mid-sized businesses, professionals, and individuals in the New York metropolitan area and South Florida. It offers a broad range of deposit, loan, and banking services, leveraging technology and a branch-lite model to provide efficient, relationship-based banking and fintech solutions like BoeFly.
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