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ConnectOne Bancorp Inc. (CNOB)
:CNOB
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ConnectOne Bancorp
(NASDAQ:CNOB)
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Rating:63Neutral
Price Target:
$25.00
▲(3.05% Upside)
ConnectOne Bancorp's overall stock score is driven by a positive earnings call that highlights successful merger integration and strong growth in deposits and loans. However, the stock faces challenges with declining profitability margins, cash flow issues, and a bearish technical outlook. The high P/E ratio also suggests limited valuation upside.
ConnectOne Bancorp (CNOB) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$1.21B
Dividend Yield3.02%
Average Volume (3M)264.99K
Price to Earnings (P/E)19.5
Beta (1Y)1.06
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. Volume251,220
30 Day Avg. Volume264,992
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 Cap1.93
Enterprise Value/Revenue3.89
Enterprise Value/Gross Profit12.97
Enterprise Value/Ebitda27.81
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
EPS Forecast (FY)1.51
Revenue Forecast (FY)$380.38M
ConnectOne Bancorp Business Overview & Revenue Model
Company DescriptionConnectOne Bancorp (CNOB) is a financial holding company based in New Jersey, primarily engaged in providing a wide range of banking and financial services through its wholly-owned subsidiary, ConnectOne Bank. The bank offers various services including commercial and residential lending, deposit products, treasury management, and wealth management services. With a focus on serving small to mid-sized businesses and individual clients, ConnectOne Bancorp aims to deliver personalized banking solutions and foster long-term relationships within the communities it serves.
How the Company Makes MoneyConnectOne Bancorp generates revenue primarily through interest income from loans, which includes commercial real estate loans, construction loans, and consumer loans. Additionally, the bank earns non-interest income from service fees on deposit accounts, wealth management services, and other financial products. The company's revenue model is heavily reliant on the spread between the interest earned on its loan portfolio and the interest paid on deposits. Significant partnerships with businesses and community organizations enhance the bank's footprint, facilitating customer acquisition and retention, which in turn contributes to its overall earnings.
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.60
Neutral
| Breakdown | TTM | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 599.94M | 534.62M | 504.07M | 386.99M | 316.75M | 322.60M |
| Gross Profit | 180.03M | 250.26M | 260.91M | 297.61M | 283.39M | 211.39M |
| EBITDA | 83.94M | 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 | 1.35B | 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 | 88.68M | 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
24.26
Price Trends
24.91
Negative
24.38
Positive
23.90
Positive
Market Momentum
-0.15
Negative
50.65
Neutral
64.30
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 24.26 is below the 20-day moving average (MA) of 24.32, below the 50-day MA of 24.91, and above the 200-day MA of 23.90, indicating a neutral trend. The MACD of -0.15 indicates Negative momentum. The RSI at 50.65 is Neutral, neither overbought nor oversold. The STOCH value of 64.30 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 |
|---|---|---|---|---|---|---|---|
76 Outperform | $1.29B | 10.63 | 11.80% | 0.31% | -2.42% | 3.83% | |
74 Outperform | $1.14B | 10.07 | 12.35% | 2.68% | 5.25% | 24.22% | |
73 Outperform | $1.20B | 10.29 | 13.05% | 3.83% | -13.17% | -16.37% | |
68 Neutral | $18.00B | 11.42 | 9.92% | 3.81% | 9.73% | 1.22% | |
64 Neutral | $1.29B | 191.08 | 1.11% | ― | 2.04% | -64.17% | |
63 Neutral | $1.21B | 19.50 | 4.40% | 3.02% | 15.55% | -28.10% | |
58 Neutral | $1.25B | 9.68 | 10.78% | 1.48% | 1.46% | 2.02% |
* Financial Sector Average
CNOB
ConnectOne Bancorp
24.55
-1.69
-6.44%
QCRH
QCR Holdings
76.28
-12.42
-14.00%
RBCAA
Republic Bancorp
65.56
-8.78
-11.81%
WABC
Westamerica Bancorporation
47.20
-7.48
-13.68%
TFIN
Triumph Financial
53.83
-41.99
-43.82%
BY
Byline Bancorp
27.06
-3.35
-11.02%
ConnectOne Bancorp Corporate Events
ConnectOne Bancorp Reports Strong Q3 2025 Performance
Oct 31, 2025
ConnectOne Bancorp, Inc., a commercial bank with a focus on small to middle-market businesses, has reported its financial results for the third quarter of 2025, showcasing a significant turnaround in profitability and strategic growth following its merger with The First of Long Island Corporation (FLIC). The bank operates through its subsidiary ConnectOne Bank and fintech subsidiary BoeFly, Inc., providing a comprehensive suite of banking and lending products.
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.
The most recent analyst rating on (CNOB) stock is a Hold with a $28.00 price target. To see the full list of analyst forecasts on ConnectOne Bancorp stock, see the CNOB Stock Forecast page.
Business Operations and StrategyFinancial Disclosures
ConnectOne Bancorp Unveils Strategic Initiatives in September
Neutral
Sep 3, 2025
ConnectOne Bancorp recently held an investor presentation in September 2025, showcasing its strategic initiatives and financial performance. The presentation aimed to provide stakeholders with insights into the company’s future plans and market positioning, although specific details were not disclosed in the release.
The most recent analyst rating on (CNOB) stock is a Hold with a $26.00 price target. To see the full list of analyst forecasts on ConnectOne Bancorp stock, see the CNOB Stock Forecast page.
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.