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ConnectOne Bancorp Inc. (CNOB)
:CNOB
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ConnectOne Bancorp
(NASDAQ:CNOB)
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Rating:69Neutral
Price Target:
$28.00
â–²(11.60% Upside)
ConnectOne Bancorp's overall stock score reflects a balanced view of its financial performance, technical indicators, and strategic developments. The positive earnings call and technical momentum are significant strengths, while valuation concerns and financial performance challenges temper the outlook.
ConnectOne Bancorp (CNOB) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$1.26B
Dividend Yield2.87%
Average Volume (3M)265.72K
Price to Earnings (P/E)29.1
Beta (1Y)1.09
Revenue Growth3.58%
EPS Growth-52.78%
CountryUS
Employees489
SectorFinancial
Sector Strength70
IndustryBanks - Regional
Share Statistics
EPS (TTM)-0.52
Shares Outstanding50,206,627
10 Day Avg. Volume286,928
30 Day Avg. Volume265,723
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 Cap1.65
Enterprise Value/Revenue3.80
Enterprise Value/Gross Profit8.61
Enterprise Value/Ebitda24.02
Forecast
1Y Price Target
$29.00Price Target Upside15.58% 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 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:Jul 29, 2025
(Q2-2025)
| % Change Since: |
Next Earnings Date:Oct 23, 2025
Earnings Call Sentiment Positive
The earnings call reflected a primarily positive outlook with successful merger execution, robust deposit growth, and improved credit quality metrics. However, challenges such as elevated provisions for credit losses and merger-related charges were also noted.Q2-2025 Updates
Positive Updates
Successful Merger and Integration
The successful completion of the merger with First of Long Island Bank, enhancing scale and accelerating growth across markets especially on Long Island.
Strong Deposit and Funding Trends
Noninterest-bearing demand deposits increased by more than $100 million since March 31, reflecting a 15% annualized growth, and total deposits were up an annualized 8%.
Loan-to-Deposit Ratio Improvement
Loan-to-deposit ratio improved from 106% to below 100%, supported by strong deposit growth.
Improved Credit Quality Metrics
Significant improvement in credit quality metrics with nonperforming asset ratio decreasing to 0.28% from 0.51% a year ago.
Projected Earnings Accretion
Substantial projected earnings accretion from the merger, estimated at $9.8 million per quarter for 2025.
Positive Margin Expansion Outlook
Net interest margin is projected to increase to about 3.25% by the end of the year, with further expansion expected in 2026.
Negative Updates
Elevated Provision for Credit Losses
Provision for credit losses was higher than usual at $35.7 million, largely due to adjustments in quantitative loss factors from the merger.
Merger-Related Charges
Recognized $40 million in merger charges with expectations to record up to an additional $10 million in the next quarter or two.
Flat Loan Portfolio Growth
Organic loan portfolio growth remained relatively flat due to elevated payoffs, despite strong loan demand.
Company Guidance
During the ConnectOne Bancorp, Inc. Second Quarter 2025 Earnings Call, significant guidance was provided, emphasizing the successful integration of the First of Long Island Bank merger, which increased the company's assets to nearly $14 billion, with $11.2 billion in loans and $11.3 billion in deposits. The merger contributed to a record organic growth in client deposits, improving the loan-to-deposit ratio from 106% in March to 99% by the end of the second quarter. The company's market capitalization now exceeds $1.2 billion. In terms of financial performance, noninterest-bearing demand deposits increased by over $100 million since March 31, with total deposits rising at an 8% annualized rate. The merger also introduced a $250 million total loan mark, with a provision for credit losses amounting to $35.7 million. Cost savings are on track with projected quarterly expenses of $55 million for 2025. The net interest margin is expected to grow to 3.25% by the end of the year, assuming one rate cut. The company anticipates maintaining a strong return on assets (ROA) of 1.2% and a return on tangible common equity of 15% as it enters 2026.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 | 547.21M | 534.62M | 504.07M | 386.99M | 316.75M | 322.60M |
| Gross Profit | 241.85M | 250.26M | 260.91M | 297.61M | 283.39M | 211.39M |
| EBITDA | 86.66M | 104.12M | 122.90M | 176.77M | 180.79M | 97.19M |
| Net Income | 37.48M | 73.79M | 87.00M | 125.21M | 130.35M | 71.29M |
Balance Sheet | ||||||
| Total Assets | 13.92B | 9.88B | 9.86B | 9.64B | 8.13B | 7.55B |
| Cash, Cash Equivalents and Short-Term Investments | 1.26B | 360.70M | 859.88M | 903.20M | 800.04M | 791.71M |
| Total Debt | 1.10B | 783.51M | 1.03B | 1.02B | 633.56M | 646.63M |
| Total Liabilities | 12.42B | 8.64B | 8.64B | 8.47B | 7.01B | 6.63B |
| Stockholders Equity | 1.50B | 1.24B | 1.22B | 1.18B | 1.12B | 915.31M |
Cash Flow | ||||||
| Free Cash Flow | 35.37M | 56.91M | 85.46M | 173.48M | 199.49M | 78.93M |
| Operating Cash Flow | 39.23M | 60.70M | 92.89M | 176.78M | 202.27M | 81.13M |
| Investing Cash Flow | -14.97M | 55.15M | -248.04M | -1.54B | -689.86M | -323.37M |
| Financing Cash Flow | 278.76M | -2.08M | 129.55M | 1.37B | 449.37M | 344.51M |
ConnectOne Bancorp Technical Analysis
Positive
25.09
Price Trends
24.43
Positive
23.74
Positive
23.73
Positive
Market Momentum
0.26
Positive
53.60
Neutral
27.16
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 25.09 is below the 20-day moving average (MA) of 25.21, above the 50-day MA of 24.43, and above the 200-day MA of 23.73, indicating a neutral trend. The MACD of 0.26 indicates Positive momentum. The RSI at 53.60 is Neutral, neither overbought nor oversold. The STOCH value of 27.16 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
Overall Rating
UnderperformOutperform
Sector (68)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
79 Outperform | 1.02B | 10.95 | 11.34% | 3.46% | 10.85% | 17.66% | |
76 Outperform | 837.03M | 8.24 | 15.04% | 1.94% | 6.94% | 3.96% | |
72 Outperform | 986.98M | 12.23 | 9.93% | 3.63% | 31.82% | 460.57% | |
69 Neutral | $1.26B | 29.15 | 2.75% | 2.87% | 3.58% | -52.78% | |
66 Neutral | 901.80M | 10.61 | 10.61% | 4.80% | 3.54% | 4.47% | |
68 Neutral | $18.00B | 11.42 | 9.92% | 3.81% | 9.73% | 1.22% |
* Financial Sector Average
Performance Comparison
CNOB
ConnectOne Bancorp
25.09
-0.43
-1.68%
BRKL
Brookline Bancorp
10.95
0.97
9.72%
SBSI
Southside Bancshares
30.92
-2.52
-7.54%
TMP
Tompkins Financial Corporation
71.09
11.60
19.50%
CTBI
Community Bancorp
56.09
6.80
13.80%
AMAL
Amalgamated Bank
27.80
-4.37
-13.58%
ConnectOne Bancorp Corporate Events
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.
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.
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.
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.