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ConnectOne Bancorp (CNOB)
NASDAQ:CNOB
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ConnectOne Bancorp (CNOB) AI Stock Analysis

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CNOB

ConnectOne Bancorp

(NASDAQ:CNOB)

Rating:71Outperform
Price Target:
$26.00
▲(11.64%Upside)
ConnectOne Bancorp presents a solid investment with strong financial performance and successful corporate strategies, including a crucial merger. Nonetheless, credit risk and cost management remain areas to watch.

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:Jul 29, 2025
(Q2-2025)
|
% Change Since: -5.02%|
Next Earnings Date:Oct 23, 2025
Earnings Call Sentiment Neutral
The earnings call highlighted successful integration and substantial growth in deposits and market capitalization due to the merger. However, challenges such as increased provisions for credit losses and high operating provisions were noted. While there are positive signs of financial health and strategic growth, there are also significant credit-related concerns.
Q2-2025 Updates
Positive Updates
Successful Merger Integration
ConnectOne Bank completed the legal merger with First of Long Island Bank, significantly enhancing scale and positioning the company for growth across all markets, particularly on Long Island.
Strong Deposit Growth
On a combined basis, noninterest-bearing demand deposits increased by more than $100 million since March 31, representing approximately 15% annualized growth.
Improvement in Loan-to-Deposit Ratio
The loan-to-deposit ratio improved from 106% pre-merger to just below 100% post-merger, indicating better financial health and liquidity.
Increased Market Capitalization
The market capitalization now exceeds $1.2 billion, with assets nearly $14 billion, $11.2 billion in loans, and $11.3 billion in deposits.
Positive Earnings Accretion from Merger
Earnings accretion from the merger is projected to be approximately $9.8 million per quarter for 2025, declining modestly in subsequent years.
Negative Updates
Elevated Provision for Credit Losses
The total provision for credit losses for the second quarter was $35.7 million, including a day 1 provision for First of Long Island of $27.4 million, indicating increased credit risk.
Higher-than-Usual Operating Provision
The operating provision was $8.3 million, higher than usual for ConnectOne, primarily due to adjustments in quantitative loss factors post-merger.
Potential Impact of Loan Payoffs
While strong loan demand is noted, elevated payoffs have kept the loan portfolio relatively flat, possibly affecting future growth projections.
CRE Concentration Ratio Increase
The Commercial Real Estate concentration ratio increased slightly to 438%, though it is expected to decrease by the end of 2025.
Company Guidance
During the ConnectOne Bancorp, Inc. Second Quarter 2025 Earnings Call, guidance was provided on several key financial metrics following the merger with First of Long Island Bank. The merger increased ConnectOne's assets to nearly $14 billion, loans to $11.2 billion, and deposits to $11.3 billion, with a market capitalization exceeding $1.2 billion. The bank achieved strong core deposit growth and improved its loan-to-deposit ratio to 99% from 106% at the end of the first quarter. Noninterest-bearing demand deposits rose to over 21% of total deposits, up from 18% at year-end. The merger's purchase accounting entries included a total loan mark of $250 million, with earnings accretion projected at $9.8 million per quarter for 2025. The provision for credit losses for the second quarter was $35.7 million, and ConnectOne's net interest margin is expected to expand to approximately 3.25% by the end of 2025. The bank's nonperforming asset ratio improved to 0.28% from 0.51% a year ago. Overall, ConnectOne is positioned for continued growth with a projected return on assets of 1.2% and a return on tangible common equity of 15% as they enter 2026.

ConnectOne Bancorp Financial Statement Overview

Summary
ConnectOne Bancorp shows robust financial health with consistent revenue growth and stable profitability. However, attention is needed on leverage levels and cost efficiency to enhance financial 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
Negative
Last Price23.29
Price Trends
50DMA
23.62
Negative
100DMA
23.27
Positive
200DMA
24.11
Negative
Market Momentum
MACD
0.09
Positive
RSI
40.21
Neutral
STOCH
19.06
Positive
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 23.29 is below the 20-day moving average (MA) of 24.71, below the 50-day MA of 23.62, and below the 200-day MA of 24.11, indicating a bearish trend. The MACD of 0.09 indicates Positive momentum. The RSI at 40.21 is Neutral, neither overbought nor oversold. The STOCH value of 19.06 is Positive, 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 (67)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
80
Outperform
$1.01B10.9811.99%3.44%10.94%17.66%
76
Outperform
$906.37M8.8614.78%1.75%6.94%3.96%
74
Outperform
$924.66M10.9210.65%4.82%3.54%4.47%
71
Outperform
$1.18B27.352.74%3.07%3.58%-52.89%
71
Outperform
$948.07M12.086.43%5.14%2.23%2.59%
67
Neutral
$17.06B11.249.31%3.84%11.08%-3.39%
56
Neutral
$975.34M12.1711.06%3.78%37.59%969.87%
* Financial Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
CNOB
ConnectOne Bancorp
23.29
2.04
9.60%
BRKL
Brookline Bancorp
10.51
1.13
12.05%
SBSI
Southside Bancshares
29.88
-1.61
-5.11%
TMP
Tompkins Financial Corporation
65.30
8.65
15.27%
CTBI
Community Bancorp
54.61
8.50
18.43%
AMAL
Amalgamated Bank
29.29
0.80
2.81%

ConnectOne Bancorp Corporate Events

Financial Disclosures
ConnectOne Bancorp to Announce Q2 Results on July 29
Neutral
Jul 10, 2025

On July 10, 2025, ConnectOne Bancorp, Inc. announced plans to release its second-quarter financial results on July 29, 2025, before the market opens. The company will host a conference call and audio webcast on the same day to discuss its financial performance and operating results, led by Chairman and CEO Frank Sorrentino III and CFO William S. Burns. This announcement is significant for stakeholders as it provides insights into the company’s financial health and strategic direction.

The most recent analyst rating on (CNOB) stock is a Buy with a $31.00 price target. To see the full list of analyst forecasts on ConnectOne Bancorp stock, see the CNOB Stock Forecast page.

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: Jul 30, 2025