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ConnectOne Bancorp (CNOB)
NASDAQ:CNOB
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ConnectOne Bancorp
(NASDAQ:CNOB)
73Outperform
ConnectOne Bancorp (CNOB) vs. S&P 500 (SPY)
Market Cap
$866.73M
Dividend Yield3.17%
Average Volume (3M)224.51K
Price to Earnings (P/E)12.3
Beta (1Y)1.16
Revenue Growth2.27%
EPS Growth-2.41%
CountryUS
Employees489
SectorFinancial
Sector Strength87
IndustryBanks - Regional
Share Statistics
EPS (TTM)1.84
Shares Outstanding38,469,975
10 Day Avg. Volume215,528
30 Day Avg. Volume224,509
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)0.00
Price to Cash Flow (P/CF)0.00
P/FCF Ratio0.00
Enterprise Value/Market Cap1.97
Enterprise Value/RevenueN/A
Enterprise Value/Gross Profit3.29
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
$31.00Price Target Upside37.59% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering1
ConnectOne Bancorp Business Overview & Revenue Model
Company DescriptionConnectOne Bancorp, Inc. operates as the bank holding company for ConnectOne Bank that provides commercial banking products and services for small and mid-sized businesses, local professionals, and individuals in the Northern New Jersey and New York Metropolitan area, and South Florida market. The company offers personal and business checking, retirement, money market, and time and savings accounts. It also provides consumer and commercial business loans on a secured and unsecured basis; revolving lines of credit; commercial mortgage loans; residential mortgages on primary and secondary residences; home equity loans; bridge loans; other personal purpose loans; and commercial construction and real estate loans. In addition, the company offers check cards, ATM cards, credit cards, wire transfers, access to automated teller services, Internet banking, treasury direct, automated clearing house origination, mobile banking by phone, safe deposit boxes, and remote deposit capture services. It operates through a network of eight banking offices in Bergen County, five banking offices in Union County, one banking office in Morris County, one office in Essex County, one office in Hudson County, one office in Monmouth County, one banking office in Manhattan in New York City, one office in Nassau County on Long Island, one in Astoria, and five branches in the Hudson Valley, as well as one financial center in West Palm Beach in Palm Beach County. The company was formerly known as Center Bancorp, Inc. and changed its name to ConnectOne Bancorp, Inc. in July 2014. ConnectOne Bancorp, Inc. was incorporated in 1982 and is headquartered in Englewood Cliffs, New Jersey.
How the Company Makes MoneyConnectOne Bancorp primarily generates revenue through interest income and non-interest income. Interest income is derived from the interest charged on various loan products, including commercial real estate loans, residential mortgages, and consumer loans. Non-interest income is earned from fees and services such as treasury management, loan servicing fees, and transaction fees from digital banking. The company's earnings are also supported by strategic partnerships and a focus on technology-driven solutions that enhance operational efficiency and customer experience. Additionally, prudent risk management and a diversified loan portfolio contribute to its financial stability and profitability.
ConnectOne Bancorp Financial Statement Overview
Summary
ConnectOne Bancorp demonstrates strong revenue growth and a solid balance sheet with reduced leverage and increased equity. Profitability has faced some pressure recently, and cash flow trends show potential challenges. Overall, the company is well-positioned, but monitoring profit margins and cash flow sustainability will be essential for continued financial health.Income Statement
ConnectOne Bancorp has shown a strong performance with consistent revenue growth over the years, from $194.35 million in 2019 to $517.89 million in 2024. The gross profit margin is robust at 100% due to the nature of the banking industry. However, the net profit margin has seen a decrease in recent years, dropping from 37.73% in 2023 to 14.25% in 2024, indicating some pressure on profitability. EBIT margin remains healthy, but the lack of EBITDA data for 2024 limits full margin analysis.75
Positive
Balance Sheet
The balance sheet reflects strong equity growth with stockholders' equity rising from $731.19 million in 2019 to $1.24 billion in 2024. The debt-to-equity ratio has improved significantly due to a reduction in total debt from $1.03 billion in 2023 to $15.5 million in 2024, indicating reduced leverage and potential risk. The equity ratio has remained stable, suggesting financial solidity. Return on Equity (ROE) is moderate, with a fall from 7.15% in 2023 to 5.94% in 2024.82
Very Positive
Cash Flow
The operating cash flow to net income ratio is strong, reflecting efficient cash conversion. However, free cash flow growth has been inconsistent, with a notable decrease from 2023 to 2024. The free cash flow to net income ratio remains healthy, but the declining trend in free cash flow could be a concern if it persists. Overall, cash flows indicate operational strength but highlight potential future liquidity challenges.68
Positive
| Breakdown | ||||
| Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|
| Income Statement | Total Revenue | |||
| 517.89M | 269.11M | 315.36M | 277.89M | 252.39M | Gross Profit |
| 517.89M | 269.11M | 315.36M | 277.89M | 252.39M | EBIT |
| 515.47M | 116.96M | 242.85M | 175.06M | 90.39M | EBITDA |
| 0.00 | 122.90M | 176.77M | 180.79M | 97.19M | Net Income Common Stockholders |
| 73.79M | 87.00M | 125.21M | 130.35M | 71.29M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | |||
| 670.66M | 859.88M | 903.20M | 800.04M | 791.71M | Total Assets |
| 9.88B | 9.86B | 9.64B | 8.13B | 7.55B | Total Debt |
| 15.50M | 1.03B | 1.02B | 633.56M | 646.63M | Net Debt |
| -42.32M | 783.48M | 753.96M | 368.02M | 342.87M | Total Liabilities |
| 8.64B | 8.64B | 8.47B | 633.56M | 646.63M | Stockholders Equity |
| 1.24B | 1.22B | 1.18B | 1.12B | 915.31M |
| Cash Flow | Free Cash Flow | |||
| 60.70M | 85.46M | 173.48M | 199.49M | 78.93M | Operating Cash Flow |
| 60.70M | 92.89M | 176.78M | 202.27M | 81.13M | Investing Cash Flow |
| 55.15M | -248.04M | -1.54B | -689.86M | -323.37M | Financing Cash Flow |
| -2.08M | 129.55M | 1.37B | 449.37M | 344.51M |
ConnectOne Bancorp Technical Analysis
Negative
22.53
Price Trends
23.35
Negative
23.89
Negative
24.15
Negative
Market Momentum
-0.22
Negative
49.50
Neutral
75.97
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For CNOB, the sentiment is Negative. The current price of 22.53 is above the 20-day moving average (MA) of 22.01, below the 50-day MA of 23.35, and below the 200-day MA of 24.15, indicating a neutral trend. The MACD of -0.22 indicates Negative momentum. The RSI at 49.50 is Neutral, neither overbought nor oversold. The STOCH value of 75.97 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative 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 (63)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
76 Outperform | $864.16M | 8.35 | 15.41% | 1.74% | 10.80% | 10.48% | |
74 Outperform | $857.24M | 9.69 | 11.03% | 5.02% | 9.36% | 8.13% | |
74 Outperform | $886.26M | 10.23 | 11.54% | 3.77% | 12.34% | 10.88% | |
74 Outperform | $939.19M | 12.81 | 6.01% | 5.13% | 4.33% | -11.14% | |
73 Outperform | $866.73M | 12.25 | 6.21% | 3.17% | 2.27% | -2.41% | |
63 Neutral | $12.46B | 9.55 | 8.14% | 17103.96% | 12.70% | -4.66% | |
56 Neutral | $858.40M | 11.55 | 10.45% | 4.15% | 37.59% | 969.87% |
* Financial Sector Average
Performance Comparison
CNOB
ConnectOne Bancorp
22.53
4.54
25.24%
BRKL
Brookline Bancorp
10.44
2.37
29.37%
SBSI
Southside Bancshares
28.19
2.36
9.14%
TMP
Tompkins Financial Corporation
59.60
15.74
35.89%
CTBI
Community Bancorp
48.96
7.86
19.12%
AMAL
Amalgamated Bank
28.16
3.69
15.08%
ConnectOne Bancorp Earnings Call Summary
Earnings Call Date:Apr 24, 2025
(Q1-2025)
| % Change Since: 0.81%|
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.Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
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.