Education
About Us
Working with TipRanks
Follow Us
ConnectOne Bancorp Inc. (CNOB)
:CNOB
Top Page
ConnectOne Bancorp
(NASDAQ:CNOB)
Select Model
Select Model
Rating:71Outperform
Price Target:
$29.00
▲(4.32% Upside)
ConnectOne Bancorp's overall stock score reflects strong financial performance and positive technical indicators, supported by a successful earnings call. The company's robust cash flow and stable balance sheet provide a solid foundation, while technical analysis indicates bullish momentum. However, valuation metrics suggest limited upside potential, and temporary concerns from the earnings call slightly temper the outlook.
Positive Factors
Revenue Growth
Sustained revenue growth indicates robust demand for ConnectOne Bancorp's services, enhancing its market position and long-term business prospects.
Cash Generation
Strong cash generation capacity supports ConnectOne Bancorp's ability to invest in growth opportunities, pay down debt, and return capital to shareholders.
Credit Quality
Low nonperforming assets and charge-offs reflect prudent risk management, ensuring financial stability and protecting profitability.
Negative Factors
Declining Profit Margins
Decreasing profit margins suggest rising costs or pricing pressures, which could erode profitability if not managed effectively.
Return on Equity
A decline in return on equity may signal inefficiencies in generating profits from shareholders' equity, impacting investor returns.
Net Interest Margin Concerns
Temporary pressures on net interest margin could limit profitability if prolonged, affecting the bank's interest income and overall financial health.
ConnectOne Bancorp (CNOB) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$1.39B
Dividend Yield2.6%
Average Volume (3M)274.25K
Price to Earnings (P/E)22.4
Beta (1Y)0.84
Revenue Growth15.55%
EPS Growth-28.10%
CountryUS
Employees489
SectorFinancial
Sector Strength70
IndustryBanks - Regional
Share Statistics
EPS (TTM)0.78
Shares Outstanding50,273,090
10 Day Avg. Volume338,682
30 Day Avg. Volume274,251
Financial Highlights & Ratios
PEG Ratio-0.82
Price to Book (P/B)0.71
Price to Sales (P/S)1.64
P/FCF Ratio15.41
Enterprise Value/Market Cap1.68
Enterprise Value/Revenue3.77
Enterprise Value/Gross Profit7.89
Enterprise Value/Ebitda24.26
Forecast
1Y Price Target
$28.00Price Target Upside0.72% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering1
EPS Forecast (FY)1.52
Revenue Forecast (FY)$380.23M
ConnectOne Bancorp Business Overview & Revenue Model
Company DescriptionConnectOne Bancorp, Inc. is a financial holding company based in New Jersey that operates through its wholly-owned subsidiary, ConnectOne Bank. The bank provides a range of financial services including personal and commercial banking, wealth management, and mortgage banking. It primarily serves individuals, small to medium-sized businesses, and commercial clients across various sectors, offering products such as checking and savings accounts, loans, and investment services.
How the Company Makes MoneyConnectOne Bancorp generates revenue primarily through interest income from loans and investments, as well as non-interest income from fees and services. Key revenue streams include interest earned on commercial and residential loans, which form a substantial portion of their income. Additionally, the bank earns fees from various banking services, including account maintenance fees, ATM fees, and service charges. Significant partnerships with local businesses and community organizations enhance their service offerings and customer base, contributing to their earnings. The bank also engages in mortgage banking activities, which provide another source of revenue through origination fees and secondary market sales. Overall, ConnectOne Bancorp's diversified revenue model, combining interest and non-interest income, positions it well within the competitive banking industry.
ConnectOne Bancorp Earnings Call Summary
Earnings Call Date:Oct 30, 2025
(Q3-2025)
| % Change Since: |
Next Earnings Date:Jan 22, 2026
Earnings Call Sentiment Positive
The earnings call highlights a positive quarter with successful merger integration, strong growth in deposits and loans, improved financial metrics, and low nonperforming assets. However, there are some concerns related to temporary factors affecting the net interest margin and potential impacts of a government shutdown on SBA loans.Q3-2025 Updates
Positive Updates
Successful Merger Integration
The systems merger integration was completed just two weeks after the legal close, leading to seamless operations with strong cultural alignment and a unified client-first mindset.
Growth in Core Deposits and Loan Originations
Core deposits continued to grow across both established and newly acquired client relationships. Loan originations this quarter were healthy with over $465 million in new funding.
Improved Financial Metrics
Operating return on assets increased by over 30 basis points to 1.05%, while PPNR as a percentage of assets rose by approximately 50 basis points over the past year to 1.61%. The net interest margin grew to 3.11% from 3.06% in the sequential quarter and from 2.67% a year ago.
Nonperforming Assets and Charge-offs
Nonperforming assets were just 0.28% at the end of the quarter. Annualized net charge-offs remained below 0.20% and 30-day delinquencies were just 0.08% of total loans.
Significant Nonrecurring Income Boost
Two nonrecurring items boosted pretax income by more than $10 million, including a $6.6 million employee retention tax credit and a $3.5 million pension curtailment gain.
Negative Updates
Temporary Factors Affecting Net Interest Margin
The current quarter's margin of 3.11% was impacted by $75 million of high rate subordinated debt that was still outstanding and higher than typical average cash balances due to large deposit growth.
Potential Impact of Government Shutdown on SBA
A government shutdown could lead to a backlog in SBA loan processing, which may affect noninterest income.
Company Guidance
During the third quarter of 2025, ConnectOne Bancorp reported significant progress post-merger, showcasing robust financial performance and strategic growth. The company witnessed a healthy growth in loans and deposits, with over $465 million in new loan originations and a substantial increase in core deposits. Credit quality remained strong with nonperforming assets at 0.28%, net charge-offs below 0.20%, and 30-day delinquencies at 0.08% of total loans. The net interest margin expanded to 3.11% from 3.06% in the previous quarter, with expectations to reach 3.25% in the fourth quarter. Additionally, the bank's operating return on assets increased by over 30 basis points to 1.05%, and PPNR as a percentage of assets rose by approximately 50 basis points to 1.61%. ConnectOne's tangible book value also saw a meaningful growth, and the company is optimistic about further loan growth in 2026, projecting a 5% increase contingent on economic conditions.ConnectOne Bancorp Financial Statement Overview
Summary
ConnectOne Bancorp demonstrates moderate financial health with stable revenue growth and a solid balance sheet. However, declining profitability margins and cash flow challenges highlight areas for improvement. The company needs to focus on enhancing cost efficiency and cash flow management to sustain growth and profitability.Income Statement
ConnectOne Bancorp shows moderate revenue growth with a TTM revenue growth rate of 3.17%. However, profitability margins have declined over the periods, with the TTM net profit margin at 6.85%, down from 13.80% in the previous year. The gross profit margin also decreased, indicating pressure on cost management. Despite these challenges, the company maintains a positive EBIT margin of 15.08%.65
Positive
Balance Sheet
The balance sheet reflects a stable financial position with a debt-to-equity ratio of 0.73 in the TTM period, which is manageable. However, the return on equity has decreased to 2.87%, suggesting reduced efficiency in generating profits from shareholders' equity. The equity ratio remains healthy, indicating a strong capital base.70
Positive
Cash Flow
Cash flow analysis reveals a decline in free cash flow growth by 30.86% in the TTM period, indicating potential liquidity challenges. The operating cash flow to net income ratio is slightly above 1, suggesting adequate cash generation relative to net income. However, the free cash flow to net income ratio of 0.90 indicates some pressure on cash conversion.75
Positive
| Breakdown | TTM | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 619.35M | 534.62M | 504.07M | 386.99M | 316.75M | 322.60M |
| Gross Profit | 295.96M | 250.26M | 260.91M | 297.61M | 283.39M | 211.39M |
| EBITDA | 96.20M | 104.12M | 122.90M | 176.77M | 180.79M | 97.19M |
| Net Income | 61.30M | 73.79M | 87.00M | 125.21M | 130.35M | 71.29M |
Balance Sheet | ||||||
| Total Assets | 14.02B | 9.88B | 9.86B | 9.64B | 8.13B | 7.55B |
| Cash, Cash Equivalents and Short-Term Investments | 1.18B | 360.70M | 859.88M | 903.20M | 800.04M | 791.71M |
| Total Debt | 1.07B | 783.51M | 1.03B | 1.02B | 633.56M | 646.63M |
| Total Liabilities | 12.49B | 8.64B | 8.64B | 8.47B | 7.01B | 6.63B |
| Stockholders Equity | 1.54B | 1.24B | 1.22B | 1.18B | 1.12B | 915.31M |
Cash Flow | ||||||
| Free Cash Flow | 84.89M | 56.91M | 85.46M | 173.48M | 199.49M | 78.93M |
| Operating Cash Flow | 90.94M | 60.70M | 92.89M | 176.78M | 202.27M | 81.13M |
| Investing Cash Flow | -202.70M | 55.15M | -248.04M | -1.54B | -689.86M | -323.37M |
| Financing Cash Flow | 407.25M | -2.08M | 129.55M | 1.37B | 449.37M | 344.51M |
ConnectOne Bancorp Technical Analysis
Positive
27.80
Price Trends
24.92
Positive
24.67
Positive
23.80
Positive
Market Momentum
0.87
Negative
73.21
Negative
79.35
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For CNOB, the sentiment is Positive. The current price of 27.8 is above the 20-day moving average (MA) of 26.04, above the 50-day MA of 24.92, and above the 200-day MA of 23.80, indicating a bullish trend. The MACD of 0.87 indicates Negative momentum. The RSI at 73.21 is Negative, neither overbought nor oversold. The STOCH value of 79.35 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for CNOB.
ConnectOne Bancorp Risk Analysis
ConnectOne Bancorp disclosed 34 risk factors in its most recent earnings report. ConnectOne Bancorp reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
ConnectOne Bancorp Peers Comparison
UnderperformOutperform
Sector (68)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
79 Outperform | $1.28B | 11.37 | 12.35% | 2.37% | 5.21% | 24.51% | |
78 Outperform | $1.41B | 10.94 | 10.78% | 1.30% | 1.31% | 2.02% | |
77 Outperform | $1.23B | 10.73 | 13.05% | 3.70% | -13.17% | -16.37% | |
75 Outperform | $1.47B | 12.16 | 11.80% | 0.28% | -2.42% | 3.83% | |
71 Outperform | $1.39B | 22.42 | 4.40% | 2.60% | 15.55% | -28.10% | |
68 Neutral | $18.00B | 11.42 | 9.92% | 3.81% | 9.73% | 1.22% | |
67 Neutral | $1.49B | 226.26 | 1.11% | ― | 2.04% | -64.17% |
* Financial Sector Average
CNOB
ConnectOne Bancorp
27.80
5.27
23.39%
QCRH
QCR Holdings
86.50
5.54
6.84%
RBCAA
Republic Bancorp
74.31
5.24
7.59%
WABC
Westamerica Bancorporation
49.72
0.18
0.36%
TFIN
Triumph Financial
64.19
-26.78
-29.44%
BY
Byline Bancorp
30.76
2.30
8.08%
ConnectOne Bancorp Corporate Events
Other
ConnectOne Bancorp Hosts November 2025 Investor Presentation
Neutral
Nov 6, 2025
ConnectOne Bancorp presented an investor presentation in November 2025. The presentation included various images and exhibits, but no specific details about the company’s operations, industry positioning, or implications for stakeholders were provided in the text.
Financial Disclosures
ConnectOne Bancorp to Release Q3 Results on Oct 30
Neutral
Oct 16, 2025
On October 16, 2025, ConnectOne Bancorp, Inc. announced plans to release its third-quarter financial results for the period ending September 30, 2025, on October 30, 2025. The company will host a conference call and webcast on the same day to discuss its financial performance, led by CEO Frank Sorrentino III and CFO William S. Burns. This announcement is part of ConnectOne’s ongoing efforts to maintain transparency and engage with its stakeholders, potentially impacting investor confidence and market positioning.
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.