ConnectOne Reports Q4 Net Interest Income of $107.8 Million
Fully taxable equivalent net interest income for the fourth quarter of 2025 was $107.8 million, an increase of $4.6 million, or 4.5%, from the third quarter of 2025. As of December 31, 2025, the Company's tangible common equity ratio and tangible book value per share were 8.62% and $23.52, respectively, compared to 9.49% and $23.92, respectively, as of December 31, 2024. Reports CET1 ratio 10.24%. "I'm pleased with ConnectOne's strong fourth quarter performance underscored by robust core earnings and expanding margins," stated Frank Sorrentino, CEO. "The Bank's net interest margin widened by 16 basis points during the quarter, benefiting from an 18 basis-point improvement in our cost of interest-bearing deposits combined with virtually no change in our loan portfolio yield. Our net interest margin is expected to continue its upward trend during 2026 with deposit and borrowing costs decreasing and loan yields increasing. Loans and client deposits, which exclude a reduction of over $280 million of brokered deposits during the quarter, both grew sequentially by more than 5% annualized, while credit trends remained stable. Our nonperforming asset ratio was just 0.33%, while annualized net charge-offs were 0.17%. Performance metrics are gaining momentum, with operating returns on assets advancing by nearly 20 basis points to 1.24%, and average tangible common equity advancing by 172 basis points to 14.27%. Further, our tangible book value per share increased by an additional 3% during the quarter to $23.52. Operationally, with the merger integration behind us, we're continuing to realize incremental synergies across the franchise. ConnectOne's scalable operating model, leading technology and robust business offerings are now driving both greater efficiency and accelerated growth. 2025 was a very strong year for ConnectOne and we enter 2026 with solid operating momentum. We look forward to building upon our client-first culture and relationship-driven strategy to drive growth and long-term value creation for all stakeholders."
