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ConnectOne Bancorp (CNOB)
NASDAQ:CNOB

ConnectOne Bancorp (CNOB) AI Stock Analysis

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ConnectOne Bancorp

(NASDAQ:CNOB)

Rating:73Outperform
Price Target:
$25.00
â–²(3.91%Upside)
ConnectOne Bancorp's strong financial performance and strategic corporate actions, including a successful merger and capital raising, are significant positives. The stock is reasonably valued with a good dividend yield. However, mixed technical indicators and potential challenges in loan growth slightly temper the overall outlook.

ConnectOne Bancorp (CNOB) vs. SPDR S&P 500 ETF (SPY)

ConnectOne Bancorp Business Overview & Revenue Model

Company DescriptionConnectOne Bancorp, Inc. (CNOB) is a financial services company that operates as the bank holding company for ConnectOne Bank. Headquartered in Englewood Cliffs, New Jersey, the bank offers a range of commercial banking services. It serves small to medium-sized businesses, high-net-worth individuals, and real estate operators and developers. The bank's core services include commercial loans, deposit products, and cash management services, with a strong focus on personal relationships and customer service.
How the Company Makes MoneyConnectOne Bancorp primarily generates revenue through interest income from its core lending operations, which include commercial real estate loans, residential real estate loans, and business loans. The bank also earns non-interest income from service charges on deposit accounts, fees from cash management services, and income from other banking services. ConnectOne Bank's strategic partnerships with local businesses and its emphasis on relationship banking help drive its earnings by fostering customer loyalty and expanding its client base.

ConnectOne Bancorp Earnings Call Summary

Earnings Call Date:Apr 24, 2025
(Q1-2025)
|
% Change Since: 8.48%|
Next Earnings Date:Jul 24, 2025
Earnings Call Sentiment Positive
ConnectOne Bancorp, Inc. presented a strong financial performance with notable increases in net income, net interest margin, and tangible book value. The merger with First of Long Island is progressing well, and the company maintains a robust loan pipeline. However, challenges include a slight contraction in the loan portfolio and increased delinquencies. Despite these challenges, the overall outlook remains positive.
Q1-2025 Updates
Positive Updates
Increase in Net Income
ConnectOne Bancorp, Inc. reported a nearly 20% year-over-year increase in net income available to common shareholders.
Net Interest Margin Expansion
The net interest margin expanded to 2.93%, with expectations to reach 3% in the second quarter.
Tangible Book Value Growth
Tangible book value per share increased by about 4% since the announcement of the merger with First of Long Island.
Stable Credit Quality
Credit quality trends remained stable, with nonaccrual loans declining by 13% this quarter.
Healthy Loan Pipeline
Despite a slight contraction in the loan portfolio, the loan pipeline remains robust, pointing to a loan growth of at least 2.5% for the second quarter.
Successful Merger Progress
The merger with First of Long Island is on track to close in the second quarter, with strong early synergies emerging.
Negative Updates
Loan Portfolio Contraction
The loan portfolio contracted slightly on a point-to-point basis due to elevated payoff activity within the commercial real estate segment.
Decline in Demand Deposit Balances
As-of demand deposit balances declined since year-end, although average demand deposits increased sequentially due to temporary client inflows.
Slight Increase in Delinquencies
Thirty to eighty-nine day delinquencies ticked up slightly, amounting to 0.18% of total loans, with criticized and classified loans increasing slightly from 2.68% to 2.79%.
Loan Growth Below Guidance
Loan portfolio growth was below guidance due to the timing of actual loan closings and increased payoffs.
Company Guidance
During the ConnectOne Bancorp, Inc. conference call for the first quarter of 2025, the company highlighted several key financial metrics and strategic developments. The quarter saw a nearly 20% year-over-year increase in net income available to common shareholders, with net interest margin expanding to 2.93%, and a projected core net interest margin of 3% for the second quarter. Tangible book value per share increased by about 4% since the planned merger with First of Long Island was announced, and the tangible common equity ratio stood at 9.73%. The loan-to-deposit ratio was below 106%, and the bank leverage ratio was 11.67%. The company maintained robust credit quality, with nonaccrual loans declining by 13% this quarter. The merger with First of Long Island is on track for a second-quarter close, with expected synergies and a combined asset base of nearly $15 billion. ConnectOne Bancorp, Inc. also projected loan growth of at least 2.5% for the second quarter, despite a slight contraction in the loan portfolio due to elevated payoff activity.

ConnectOne Bancorp Financial Statement Overview

Summary
ConnectOne Bancorp shows a robust financial position with consistent revenue growth and stable profitability. However, there are concerns over cost management and high debt levels that need attention for improved performance.
Income Statement
70
Positive
The income statement shows steady revenue growth, with a notable increase in total revenue for the TTM period. The gross profit margin has decreased, but the net profit margin is relatively stable. There is a slight decline in EBIT and EBITDA margins, suggesting potential cost management issues. Overall, the company displays consistent earnings with potential for improved profitability.
Balance Sheet
65
Positive
The balance sheet indicates a healthy equity base with a stable debt-to-equity ratio, but total liabilities remain significant. The equity ratio suggests adequate capitalization, but the high debt level could pose risks if not managed properly. Return on equity has shown slight fluctuation over the years but remains generally positive.
Cash Flow
75
Positive
Cash flow metrics are strong, with positive operating and free cash flow, indicating good liquidity management. The free cash flow to net income ratio is healthy, and the company shows effective conversion of income to cash. However, there is a slight decrease in free cash flow growth, which could impact future cash reserves if not addressed.
BreakdownTTMDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue530.40M534.62M504.07M386.99M316.75M322.60M
Gross Profit256.82M250.26M260.91M297.61M283.39M211.39M
EBITDA108.34M104.12M122.90M176.77M180.79M97.19M
Net Income76.83M73.79M87.00M125.21M130.35M71.29M
Balance Sheet
Total Assets9.76B9.88B9.86B9.64B8.13B7.55B
Cash, Cash Equivalents and Short-Term Investments706.12M360.70M859.88M903.20M800.04M791.71M
Total Debt707.86M783.51M1.03B1.02B633.56M646.63M
Total Liabilities8.51B8.64B8.64B8.47B7.01B6.63B
Stockholders Equity1.25B1.24B1.22B1.18B1.12B915.31M
Cash Flow
Free Cash Flow51.15M56.91M85.46M173.48M199.49M78.93M
Operating Cash Flow55.07M60.70M92.89M176.78M202.27M81.13M
Investing Cash Flow81.25M55.15M-248.04M-1.54B-689.86M-323.37M
Financing Cash Flow-121.30M-2.08M129.55M1.37B449.37M344.51M

ConnectOne Bancorp Technical Analysis

Technical Analysis Sentiment
Positive
Last Price24.06
Price Trends
50DMA
23.00
Positive
100DMA
23.44
Positive
200DMA
24.07
Negative
Market Momentum
MACD
0.09
Negative
RSI
61.90
Neutral
STOCH
85.67
Negative
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 24.06 is above the 20-day moving average (MA) of 22.81, above the 50-day MA of 23.00, and below the 200-day MA of 24.07, indicating a neutral trend. The MACD of 0.09 indicates Negative momentum. The RSI at 61.90 is Neutral, neither overbought nor oversold. The STOCH value of 85.67 is Negative, 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

Overall Rating
UnderperformOutperform
Sector (60)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
79
Outperform
$961.51M11.1011.54%3.55%12.27%10.88%
77
Outperform
$982.85M9.5315.41%1.79%10.80%10.48%
73
Outperform
$1.21B13.126.21%3.11%2.27%-2.50%
72
Outperform
$921.53M10.4811.03%4.89%9.34%8.12%
71
Outperform
$946.29M12.986.01%5.12%4.33%-11.14%
60
Neutral
C$14.62B6.2020.17%5.63%26.93%-38.21%
TMTMP
56
Neutral
$931.74M12.5210.45%3.95%37.59%969.87%
* Financial Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
CNOB
ConnectOne Bancorp
24.06
6.00
33.22%
BRKL
Brookline Bancorp
10.93
2.81
34.61%
SBSI
Southside Bancshares
30.50
4.96
19.42%
TMP
Tompkins Financial Corporation
64.55
18.93
41.49%
CTBI
Community Bancorp
54.59
13.61
33.21%
AMAL
Amalgamated Bank
32.13
6.29
24.34%

ConnectOne Bancorp Corporate Events

Executive/Board ChangesBusiness Operations and Strategy
ConnectOne Bancorp Appoints New General Counsel
Positive
Jun 25, 2025

On June 1, 2025, ConnectOne Bancorp appointed Robert A. Schwartz as General Counsel, enhancing its executive leadership as the company continues its growth trajectory following a merger with First of Long Island Corporation. Schwartz, a seasoned expert in banking law and mergers, has been integral to ConnectOne since its inception and will now advise on legal and regulatory matters as the company approaches $14 billion in assets. His appointment is seen as a strategic move to strengthen ConnectOne’s leadership and capitalize on opportunities in the evolving banking landscape.

The most recent analyst rating on (CNOB) stock is a Buy with a $25.00 price target. To see the full list of analyst forecasts on ConnectOne Bancorp stock, see the CNOB Stock Forecast page.

Executive/Board ChangesM&A Transactions
ConnectOne Bancorp Completes Merger with First of Long Island
Positive
Jun 2, 2025

On June 2, 2025, ConnectOne Bancorp, Inc. announced the completion of its merger with The First of Long Island Corporation, resulting in a combined entity with approximately $14 billion in total assets. The merger enhances ConnectOne’s scale and capabilities, expanding its retail network to over 60 branches across New York, New Jersey, and Southeast Florida. The merger also led to an expansion of ConnectOne’s Board of Directors, with key appointments from The First of Long Island Corporation, positioning the company for accelerated growth and enhanced service offerings.

The most recent analyst rating on (CNOB) stock is a Buy with a $25.00 price target. To see the full list of analyst forecasts on ConnectOne Bancorp stock, see the CNOB Stock Forecast page.

Shareholder MeetingsBusiness Operations and Strategy
ConnectOne Bancorp Holds Annual Shareholders Meeting
Neutral
May 21, 2025

On May 20, 2025, ConnectOne Bancorp, Inc. held its Annual Meeting of Shareholders, where several key proposals were voted on and approved. These included the election of twelve directors for one-year terms, the adoption of a non-binding resolution on executive compensation, and the ratification of Crowe LLP as the independent registered public accounting firm for 2025. The meeting saw participation from a significant majority of shareholders, indicating strong engagement and support for the company’s governance and operational strategies.

The most recent analyst rating on (CNOB) stock is a Buy with a $25.00 price target. To see the full list of analyst forecasts on ConnectOne Bancorp stock, see the CNOB Stock Forecast page.

Private Placements and FinancingBusiness Operations and Strategy
ConnectOne Bancorp Raises $196.5 Million from Note Sale
Positive
May 20, 2025

On May 15, 2025, ConnectOne Bancorp, Inc. entered into an underwriting agreement for the issuance and sale of $200 million in subordinated notes due 2035, with an 8.125% fixed-to-floating interest rate. The sale, which closed on May 20, 2025, raised approximately $196.5 million after expenses. The company plans to use the proceeds to redeem existing notes, contribute to regulatory capital, and support growth and strategic initiatives.

The most recent analyst rating on (CNOB) stock is a Buy with a $25.00 price target. To see the full list of analyst forecasts on ConnectOne Bancorp stock, see the CNOB Stock Forecast page.

M&A TransactionsRegulatory Filings and Compliance
ConnectOne Bancorp Merger Receives Final Approval
Positive
May 15, 2025

On September 4, 2024, ConnectOne Bancorp, Inc. announced a merger agreement with The First of Long Island Corporation, with the merger expected to close on June 1, 2025. The merger received all necessary regulatory approvals, including from the New Jersey Department of Banking and Insurance on May 12, 2025, positioning ConnectOne as the surviving entity and potentially strengthening its market position.

The most recent analyst rating on (CNOB) stock is a Buy with a $25.00 price target. To see the full list of analyst forecasts on ConnectOne Bancorp stock, see the CNOB Stock Forecast page.

M&A TransactionsBusiness Operations and Strategy
ConnectOne Bancorp Gains Waiver for Merger Approval
Positive
May 12, 2025

On May 9, 2025, ConnectOne Bancorp received a waiver from the Federal Reserve Bank of New York, exempting it from filing an application for its merger with The First of Long Island Corporation, positioning ConnectOne as the surviving entity. This merger is expected to enhance ConnectOne’s market presence in New Jersey and Long Island, aligning with its strategic priorities and bolstering its profitability through transaction synergies. The integration process is reportedly ahead of schedule, reflecting ConnectOne’s experience in successful mergers and acquisitions.

The most recent analyst rating on (CNOB) stock is a Buy with a $25.00 price target. To see the full list of analyst forecasts on ConnectOne Bancorp stock, see the CNOB Stock Forecast page.

M&A TransactionsBusiness Operations and Strategy
ConnectOne Bancorp Receives FDIC Approval for Merger
Positive
May 6, 2025

On May 6, 2025, ConnectOne Bancorp, Inc. and The First of Long Island Corporation announced they received FDIC approval for their merger, expected to close around June 1, 2025, pending further regulatory approvals. The merger will create a combined entity under the ConnectOne brand with approximately $14 billion in total assets, establishing it as one of the top 5 community banks on Long Island by deposit market share. This strategic move aims to leverage ConnectOne’s commercial expertise and infrastructure to serve First of Long Island’s client base, unlocking new opportunities for clients, employees, and stakeholders.

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.Date of analysis: Jun 26, 2025