ConnectOne Bancorp Widens Net Interest Margin 12 Bps, Raises Dividend 8.3%
ConnectOne Bancorp reported Q1 net income of $36.3 million ($0.72 per share; $0.79 operating EPS) and saw net interest income rise 2.1% to $110.0 million as its margin widened 12 basis points to 3.39%. Loans and deposits grew 10%, tangible book value per share rose 1.7%, and the quarterly dividend was hiked 8.3% to $0.195.
1. Q1 Financial Performance
ConnectOne reported first-quarter net income of $36.3 million, or $0.72 per diluted share, with operating EPS of $0.79. Fully taxable equivalent net interest income rose to $110.0 million, a 2.1% increase from the prior quarter, as net interest margin widened 12 basis points to 3.39%.
2. Loan Growth and Credit Quality
Loans and deposits both grew at a 10% annualized pace, fueled by loan repricing and merger synergies. Credit quality remained strong, with annualized net charge-offs declining to 8 basis points and nonaccrual loans decreasing, while $2.0 million in restructuring charges were recorded.
3. Capital Returns and Dividend Increase
Tangible book value per share rose 1.7%, approaching the pre-merger level of $24.16. The board approved an 8.3% increase in the quarterly common dividend to $0.195 per share and declared a preferred dividend of $0.328125 per depositary share, underscoring commitment to shareholder returns.