GICS Sector : Financial Services
ConnectOne 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.
ConnectOne Bancorp reported a robust financial performance in Q3 2025, driven by the successful integration of its merger, expanding net interest margin, and organic balance sheet growth. The company's operating return on assets increased by over 30 basis points to 1.05%, and PPNR as a percentage of assets rose by approximately 50 basis points to 1.61%. Earnings per share (EPS) came in at $0.7, beating estimates of $0.68. The net interest margin expanded to 3.11% from 3.06% in the sequential quarter and 2.67% a year ago, driven by the merger and loan growth. Revenue growth is expected to continue, with analysts estimating a 29.5% increase in revenues for the next year.
Publication Date: Nov -30
The company's balance sheet showed robust deposit growth, with core deposits continuing to grow across both established and newly acquired client relationships. Loan originations remained healthy, with over $465 million in new funding, and the loan pipeline is strong, with expectations of accelerating loan growth in the fourth quarter. Credit quality remained solid, with nonperforming assets at 0.28%, annualized net charge-offs below 0.20%, and 30-day delinquencies at 0.08% of total loans.
The company reported two nonrecurring items that boosted pretax income by more than $10 million, including a $6.6 million employee retention tax credit and a $3.5 million pension curtailment gain. Management expects noninterest income to grow, driven by gains on sales as they continue to build out SBA, BoeFly, and residential mortgage. The company's capital and tangible book value grew meaningfully, and management is well-positioned to make determinations on capital allocation in 2026, including opportunistic share repurchases.
Using the Price-to-Tangible Book Value (P/TBV) ratio, which is a relevant metric for banks, we can assess the company's valuation. The P/B Ratio is 0.63, indicating that the company may be undervalued. The Dividend Yield is 2.85%, providing a relatively stable source of return. With a strong outlook for loan growth and expanding net interest margin, ConnectOne Bancorp is well-positioned for continued success. Management's focus on building its SBA platform and driving opportunities from its BoeFly business is expected to continue to expand its noninterest income, driving long-term growth.
ConnectOne Bancorp, Inc. $CNOB Shares Bought by Geode Capital Management LLC
Nov -29
ConnectOne: M&A Benefits Clear In A Solid Q3 (Rating Upgrade)
Oct -30
ConnectOne Bancorp, Inc. (CNOB) Q3 2025 Earnings Call Transcript
Oct -30
ConnectOne Bancorp, Inc. Reports Third Quarter 2025 Results
Oct -30
ConnectOne Bancorp, Inc. to Host 2025 Third Quarter Results Conference Call on October 30, 2025
Oct -16
ConnectOne Bancorp, Inc. to Host 2025 Third Quarter Results Conference Call on October 30, 2025
Oct -16
Should You Buy ConnectOne Bancorp (CNOB) After Golden Cross?
Aug -28
ConnectOne Bancorp, Inc. (CNOB) Q2 2025 Earnings Call Transcript
Jul -29
Community Bank's 6.0% growth is driven by strategic expansion into high-growth markets, increased commercial lending, and a focus on digital banking. Additionally, the bank's strong deposit growth, fueled by its customer-centric approach and competitive deposit rates, has enabled it to maintain a low-cost funding base and support loan growth.
Provides financing solutions to businesses for various purposes such as expansion, acquisition, and working capital
Offers personal banking services including checking and savings accounts, credit cards, and personal loans
Provides mortgage loans for residential and commercial properties
Offers cash management services to businesses, including account management and payment processing
Provides investment and wealth management services to individuals and businesses
Offers online banking services, including bill pay, fund transfer, and account management
The threat of substitutes for ConnectOne Bancorp, Inc. is medium due to the presence of alternative financial institutions and digital banking platforms.
The bargaining power of customers for ConnectOne Bancorp, Inc. is low due to the lack of concentration of buyers and the availability of multiple banking options.
The bargaining power of suppliers for ConnectOne Bancorp, Inc. is medium due to the presence of multiple suppliers of financial services and technology.
The threat of new entrants for ConnectOne Bancorp, Inc. is high due to the low barriers to entry in the banking industry and the increasing trend of fintech startups.
The intensity of rivalry for ConnectOne Bancorp, Inc. is high due to the presence of multiple competitors in the banking industry and the increasing competition for market share.
| Value | |
|---|---|
| Debt Weight | 45.51% |
| Debt Cost | 3.95% |
| Equity Weight | 54.49% |
| Equity Cost | 10.13% |
| WACC | 7.32% |
| Leverage | 83.52% |
Value: 6.3
Growth: 3.9
Quality: 8.8
Yield: 8.0
Momentum: 9.0
Volatility: 9.3
1-Year Total Return ->
Value: 7.9
Growth: 4.2
Quality: 5.1
Yield: 7.0
Momentum: 8.0
Volatility: 7.0
1-Year Total Return ->
Value: 6.1
Growth: 4.8
Quality: 8.2
Yield: 6.0
Momentum: 5.0
Volatility: 7.7
1-Year Total Return ->
Value: 6.8
Growth: 5.7
Quality: 4.4
Yield: 9.0
Momentum: 5.0
Volatility: 6.7
1-Year Total Return ->
Value: 5.1
Growth: 5.2
Quality: 5.0
Yield: 6.0
Momentum: 7.0
Volatility: 8.7
1-Year Total Return ->
Value: 4.2
Growth: 5.0
Quality: 4.3
Yield: 6.0
Momentum: 4.0
Volatility: 6.7
1-Year Total Return ->