ConnectOne Bancorp (NASDAQ:CNOB) Announces Earnings Results

Key Points

• ConnectOne reported Q earnings of $0.79 EPS, topping estimates by $0.01, while revenue of $116.64M missed analyst expectations.
• The bank showed lending momentum with loans up about $300M this quarter (annualized ~10%) and assets near $15 billion, and net interest margin expanded to 3.39% with management targeting ~3.50% by year‑end.
• A rise in 30–59 day delinquencies tied to one legacy NYC rent‑stabilized multifamily relationship is a potential credit overhang, though management says it’s working the workout and has meaningful reserves.

ConnectOne Bancorp (NASDAQ:CNOB - Get Free Report) posted its quarterly earnings results on Thursday. The financial services provider reported $0.79 earnings per share (EPS) for the quarter, topping the consensus estimate of $0.78 by $0.01, Zacks reports. ConnectOne Bancorp had a net margin of 11.83% and a return on equity of 9.33%. The company had revenue of $116.64 million for the quarter, compared to analyst estimates of $119.59 million.

Here are the key takeaways from ConnectOne Bancorp's conference call:

• ConnectOne reported strong balance-sheet growth and lending momentum, with loans up ~$300M this quarter (annualized ~10%) and total assets scaled to nearly $15 billion.
• Net interest margin expanded to 3.39% (up 12 bps sequentially) and management reiterated a year-end spot margin target of ~3.50%, driven mainly by loan repricings and improving deposit costs.
• A rise in 30–59 day delinquencies was tied to one legacy relationship in the NYC rent‑stabilized multifamily sector; while management said it’s working the workout and has meaningful reserves, this remains a potential credit overhang.
• Capital and shareholder returns strengthened — tangible book rose to $23.93, the board raised the common dividend by 8.3%, the bank repurchased 90,000 shares (with >500,000 shares remaining authorized), and management said SBA sales and non‑interest income are accelerating.

ConnectOne Bancorp Stock Up 2.6%

CNOB traded up $0.72 during trading hours on Thursday, hitting $28.73. 91,430 shares of the company's stock were exchanged, compared to its average volume of 317,766. The stock has a market cap of $1.44 billion, a price-to-earnings ratio of 19.14 and a beta of 1.08. The stock's 50-day moving average is $27.02 and its two-hundred day moving average is $26.34. The company has a quick ratio of 1.04, a current ratio of 1.04 and a debt-to-equity ratio of 0.76. ConnectOne Bancorp has a 1-year low of $21.79 and a 1-year high of $29.28.

ConnectOne Bancorp Dividend Announcement

The business also recently declared a quarterly dividend, which was paid on Monday, March 2nd. Stockholders of record on Friday, February 13th were issued a $0.18 dividend. This represents a $0.72 annualized dividend and a dividend yield of 2.5%. The ex-dividend date was Friday, February 13th. ConnectOne Bancorp's dividend payout ratio is 48.00%.

Institutional Investors Weigh In On ConnectOne Bancorp

Institutional investors and hedge funds have recently made changes to their positions in the stock. Osaic Holdings Inc. increased its holdings in ConnectOne Bancorp by 728.4% during the second quarter. Osaic Holdings Inc. now owns 1,781 shares of the financial services provider's stock worth $41,000 after buying an additional 1,566 shares during the last quarter. State of Wyoming acquired a new position in shares of ConnectOne Bancorp during the 4th quarter worth about $73,000. Russell Investments Group Ltd. raised its holdings in shares of ConnectOne Bancorp by 791.0% in the 3rd quarter. Russell Investments Group Ltd. now owns 4,553 shares of the financial services provider's stock valued at $113,000 after purchasing an additional 4,042 shares during the period. Tower Research Capital LLC TRC raised its holdings in shares of ConnectOne Bancorp by 707.0% in the 2nd quarter. Tower Research Capital LLC TRC now owns 6,440 shares of the financial services provider's stock valued at $149,000 after purchasing an additional 5,642 shares during the period. Finally, DRW Securities LLC acquired a new stake in ConnectOne Bancorp in the 4th quarter valued at about $210,000. Institutional investors own 67.70% of the company's stock.

Wall Street Analysts Forecast Growth

Several research analysts recently issued reports on CNOB shares. Keefe, Bruyette & Woods increased their price target on shares of ConnectOne Bancorp from $30.00 to $32.00 and gave the stock an "outperform" rating in a research report on Friday, January 30th. Wall Street Zen cut ConnectOne Bancorp from a "buy" rating to a "hold" rating in a report on Saturday, January 10th. Weiss Ratings restated a "hold (c)" rating on shares of ConnectOne Bancorp in a research report on Wednesday, January 21st. Hovde Group reduced their target price on shares of ConnectOne Bancorp from $32.50 to $32.00 and set an "outperform" rating on the stock in a research report on Friday, January 30th. Finally, Piper Sandler initiated coverage on shares of ConnectOne Bancorp in a research report on Monday, March 16th. They issued an "overweight" rating and a $31.00 price objective for the company. One equities research analyst has rated the stock with a Strong Buy rating, two have given a Buy rating and one has issued a Hold rating to the company. According to MarketBeat, the stock has an average rating of "Buy" and an average price target of $31.67.

ConnectOne Bancorp Company Profile

ConnectOne Bancorp is a New Jersey‐based bank holding company whose primary subsidiary, ConnectOne Bank, offers a suite of commercial banking services to small and medium‐sized businesses, professionals and individuals. Established in 2005 and headquartered in Englewood Cliffs, New Jersey, the company seeks to deliver customized lending and deposit solutions through a network of branches across northern New Jersey and the New York metropolitan area.

The company's lending portfolio centers on commercial real estate financing, construction lending, owner‐occupied real estate loans and working capital lines of credit.

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