ConnectOne Bancorp Reports Decline in Net Income, Announces Merger with The First of Long Island Corporation

ConnectOne Bancorp, Inc. reported its financial results for the three and nine months ended September 30, 2024, revealing a decline in net income and significant strategic developments, including a planned merger with The First of Long Island Corporation.

For the third quarter of 2024, net income available to common stockholders was $15.7 million, down from $19.9 million in the same period of 2023. This decline was attributed to a $2.9 million increase in noninterest expenses, a $2.3 million rise in the provision for credit losses, and a $1.5 million decrease in net interest income. Diluted earnings per share decreased to $0.41 from $0.51 year-over-year. For the nine months ended September 30, 2024, net income available to common stockholders was $48.9 million, compared to $63.2 million for the same period in 2023.

Total interest income for Q3 2024 increased to $130.2 million from $123.7 million in Q3 2023, while net interest income fell to $60.9 million from $62.4 million. The net interest margin also decreased to 2.67% from 2.76%. Noninterest income rose to $4.7 million, up from $3.6 million, driven by gains on equity securities and other income sources.

As of September 30, 2024, total assets were $9.7 billion, a decrease from $9.9 billion at the end of 2023. Total loans receivable decreased to $8.1 billion from $8.3 billion, with commercial real estate loans accounting for 70.7% of the total loan portfolio. The allowance for credit losses increased slightly to $82.5 million, reflecting a provision for credit losses of $3.8 million in Q3 2024, compared to $1.5 million in Q3 2023.

ConnectOne Bancorp announced a definitive agreement to merge with The First of Long Island Corporation, valued at approximately $284 million. The combined entity will operate under the ConnectOne brand and is expected to have total assets of around $14 billion, total deposits of approximately $11 billion, and total loans of about $11 billion.

Total deposits as of September 30, 2024, were $7.5 billion, a slight decrease from $7.6 billion at the end of 2023. The decrease was primarily due to a drop in interest-bearing demand deposits, partially offset by increases in savings and time deposits. The company’s stockholders’ equity remained stable at approximately $1.2 billion, with retained earnings increasing to $619.5 million.

Overall, ConnectOne Bancorp's financial performance reflects challenges in net income and interest income, alongside strategic growth through the upcoming merger, which aims to enhance its market position.