ConnectOne Bancorp (NASDAQ:CNOB) Releases Quarterly Earnings Results, Beats Estimates By $0.06 EPS

Key Points

• ConnectOne reported Q1 EPS of $0.79, beating consensus by $0.06, but revenue of $116.64M missed estimates of $119.59M and net income was slightly down sequentially.
• Balance-sheet momentum was strong—loans rose about $300M (annualized ~10%) and total assets scaled to nearly $15 billion, while net interest margin expanded to 3.39% with a year‑end spot target of ~3.50%.
• Management warned of a rise in 30–59 day delinquencies tied to one legacy NYC rent‑stabilized multifamily relationship as a potential credit overhang, but capital and shareholder returns strengthened—tangible book climbed to $23.93, the dividend was raised 8.3% to $0.195, and share buybacks resumed.

ConnectOne Bancorp (NASDAQ:CNOB - Get Free Report) issued its earnings results on Thursday. The financial services provider reported $0.79 EPS for the quarter, topping analysts' consensus estimates of $0.73 by $0.06, Zacks reports. The firm had revenue of $116.64 million for the quarter, compared to the consensus estimate of $119.59 million. ConnectOne Bancorp had a return on equity of 9.33% and a net margin of 11.83%.

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 Performance

CNOB opened at $28.93 on Friday. The company has a market cap of $1.45 billion, a price-to-earnings ratio of 19.29 and a beta of 1.08. The firm's fifty day simple moving average is $27.05 and its two-hundred day simple moving average is $26.36. 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 52-week low of $21.79 and a 52-week high of $29.28.

ConnectOne Bancorp Increases Dividend

The business also recently disclosed a quarterly dividend, which will be paid on Monday, June 1st. Shareholders of record on Friday, May 15th will be issued a dividend of $0.195 per share. The ex-dividend date of this dividend is Friday, May 15th. This is a positive change from ConnectOne Bancorp's previous quarterly dividend of $0.18. This represents a $0.78 annualized dividend and a yield of 2.7%. ConnectOne Bancorp's payout ratio is 48.00%.

Trending Headlines about ConnectOne Bancorp

Here are the key news stories impacting ConnectOne Bancorp this week:

• Positive Sentiment: Company raised its quarterly common dividend by 8.3% to $0.195/share (annualized yield ~2.7%), with an ex-dividend/record date of May 15 and payment June 1 — a shareholder-friendly move that supports income investors. ConnectOne Bancorp, Inc. Reports First Quarter 2026 Results
• Positive Sentiment: EPS beat: Q1 EPS of $0.79 topped consensus/Zacks estimates (~$0.73–$0.78), showing meaningful year-over-year earnings improvement and supporting valuation (P/E ~10.8). ConnectOne Bancorp (CNOB) Q1 Earnings Beat Estimates
• Positive Sentiment: Net interest margin widened by ~12 bps and loan growth was strong (10% annualized), with tangible book value and operating performance improving — fundamentals that help net interest income and future earnings. ConnectOne Bancorp, Inc. Reports First Quarter 2026 Results
• Neutral Sentiment: Revenue missed analyst expectations ($116.64M vs. $119.59M), which tempers the EPS beat and could limit upside if the revenue trend continues. MarketBeat Q1 Summary
• Neutral Sentiment: Net income was down slightly sequentially (Q1 $36.3M vs. Q4 $38.0M) but materially higher year‑over‑year; investors will watch upcoming quarters for sustainability of margin and loan growth. ConnectOne Bancorp, Inc. Reports First Quarter 2026 Results
• Neutral Sentiment: Analyst writeups (Zacks/Business Insider/Seeking Alpha) provide deeper metric context and preferred‑share dividend notices — useful for research but not immediate catalysts. Zacks: Q1 Key Metrics
• Negative Sentiment: Minor red flags: revenue miss and a small sequential decline in net income mean the market will scrutinize future revenue drivers and cost control — a disappointing topline could pressure the stock if repeated. MarketBeat Q1 Summary

Institutional Investors Weigh In On ConnectOne Bancorp

Several large investors have recently bought and sold shares of the company. Osaic Holdings Inc. lifted its position 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 in the last quarter. State of Wyoming purchased a new stake in ConnectOne Bancorp in the 4th quarter valued at $73,000. Russell Investments Group Ltd. increased its stake 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 worth $113,000 after acquiring an additional 4,042 shares during the last quarter. Tower Research Capital LLC TRC increased its stake 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 worth $149,000 after acquiring an additional 5,642 shares during the last quarter. Finally, DRW Securities LLC purchased a new position in shares of ConnectOne Bancorp during the 4th quarter worth $210,000. 67.70% of the stock is currently owned by hedge funds and other institutional investors.

Analyst Ratings Changes

A number of research analysts have issued reports on the company. Hovde Group decreased their price target on ConnectOne Bancorp from $32.50 to $32.00 and set an "outperform" rating for the company in a report on Friday, January 30th. Keefe, Bruyette & Woods upped their price objective 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 lowered shares of ConnectOne Bancorp from a "buy" rating to a "hold" rating in a research note on Saturday, January 10th. Piper Sandler assumed coverage on shares of ConnectOne Bancorp in a research note on Monday, March 16th. They set an "overweight" rating and a $31.00 target price on the stock. Finally, Weiss Ratings restated a "hold (c)" rating on shares of ConnectOne Bancorp in a research report on Wednesday, January 21st. One investment analyst has rated the stock with a Strong Buy rating, two have assigned a Buy rating and one has issued a Hold rating to the company. Based on data from MarketBeat, the stock has a consensus rating of "Buy" and a consensus target price of $31.67.

About ConnectOne Bancorp

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.