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ConnectOne Bancorp (CNOB)
NASDAQ:CNOB
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ConnectOne Bancorp
(NASDAQ:CNOB)
74Outperform
ConnectOne Bancorp (CNOB) vs. S&P 500 (SPY)
Market Cap
$868.03M
Dividend Yield3.18%
Average Volume (3M)200.68K
Price to Earnings (P/E)12.9
Beta (1Y)1.33
Revenue Growth6.06%
EPS Growth-15.21%
CountryUS
Employees489
SectorFinancial
Sector Strength86
IndustryBanks - Regional
Share Statistics
EPS (TTM)1.75
Shares Outstanding38,374,264
10 Day Avg. Volume248,780
30 Day Avg. Volume200,679
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)3.61
Price to Cash Flow (P/CF)7.00
P/FCF Ratio2.90
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
$32.00Price Target Upside52.74% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering1
ConnectOne Bancorp Business Overview & Revenue Model
Company DescriptionConnectOne Bancorp, Inc. (CNOB) is a bank holding company engaged in providing a wide range of commercial banking products and services. Headquartered in New Jersey, ConnectOne Bank, its primary subsidiary, focuses on serving individuals, small to mid-sized businesses, and professional communities. The bank offers traditional banking services such as deposits, loans, and cash management, as well as digital banking solutions to meet the diverse needs of its clients.
How the Company Makes MoneyConnectOne Bancorp primarily generates revenue through interest income and non-interest income. Interest income is derived from the interest charged on various loan products, including commercial real estate loans, residential mortgages, and consumer loans. Non-interest income is earned from fees and services such as treasury management, loan servicing fees, and transaction fees from digital banking. The company's earnings are also supported by strategic partnerships and a focus on technology-driven solutions that enhance operational efficiency and customer experience. Additionally, prudent risk management and a diversified loan portfolio contribute to its financial stability and profitability.
ConnectOne Bancorp Financial Statement Overview
Summary
ConnectOne Bancorp demonstrates strong revenue growth and a solid balance sheet with reduced leverage and increased equity. Profitability has faced some pressure recently, and cash flow trends show potential challenges. Overall, the company is well-positioned, but monitoring profit margins and cash flow sustainability will be essential for continued financial health.Income Statement
ConnectOne Bancorp has shown a strong performance with consistent revenue growth over the years, from $194.35 million in 2019 to $517.89 million in 2024. The gross profit margin is robust at 100% due to the nature of the banking industry. However, the net profit margin has seen a decrease in recent years, dropping from 37.73% in 2023 to 14.25% in 2024, indicating some pressure on profitability. EBIT margin remains healthy, but the lack of EBITDA data for 2024 limits full margin analysis.75
Positive
Balance Sheet
The balance sheet reflects strong equity growth with stockholders' equity rising from $731.19 million in 2019 to $1.24 billion in 2024. The debt-to-equity ratio has improved significantly due to a reduction in total debt from $1.03 billion in 2023 to $15.5 million in 2024, indicating reduced leverage and potential risk. The equity ratio has remained stable, suggesting financial solidity. Return on Equity (ROE) is moderate, with a fall from 7.15% in 2023 to 5.94% in 2024.82
Very Positive
Cash Flow
The operating cash flow to net income ratio is strong, reflecting efficient cash conversion. However, free cash flow growth has been inconsistent, with a notable decrease from 2023 to 2024. The free cash flow to net income ratio remains healthy, but the declining trend in free cash flow could be a concern if it persists. Overall, cash flows indicate operational strength but highlight potential future liquidity challenges.68
Positive
| Breakdown | ||||
| Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|
| Income Statement | Total Revenue | |||
| 517.89M | 269.11M | 315.36M | 277.89M | 252.39M | Gross Profit |
| 517.89M | 269.11M | 315.36M | 277.89M | 252.39M | EBIT |
| 515.47M | 116.96M | 242.85M | 175.06M | 90.39M | EBITDA |
| 0.00 | 122.90M | 176.77M | 180.79M | 97.19M | Net Income Common Stockholders |
| 73.79M | 87.00M | 125.21M | 130.35M | 71.29M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | |||
| 670.66M | 859.88M | 903.20M | 800.04M | 791.71M | Total Assets |
| 9.88B | 9.86B | 9.64B | 8.13B | 7.55B | Total Debt |
| 15.50M | 1.03B | 1.02B | 633.56M | 646.63M | Net Debt |
| -42.32M | 783.48M | 753.96M | 368.02M | 342.87M | Total Liabilities |
| 8.64B | 8.64B | 8.47B | 633.56M | 646.63M | Stockholders Equity |
| 1.24B | 1.22B | 1.18B | 1.12B | 915.31M |
| Cash Flow | Free Cash Flow | |||
| 60.70M | 85.46M | 173.48M | 199.49M | 78.93M | Operating Cash Flow |
| 60.70M | 92.89M | 176.78M | 202.27M | 81.13M | Investing Cash Flow |
| 55.15M | -248.04M | -1.54B | -689.86M | -323.37M | Financing Cash Flow |
| -2.08M | 129.55M | 1.37B | 449.37M | 344.51M |
ConnectOne Bancorp Technical Analysis
Negative
20.95
Price Trends
24.40
Negative
24.51
Negative
23.93
Negative
Market Momentum
-0.11
Negative
51.43
Neutral
55.27
Neutral
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 20.95 is below the 20-day moving average (MA) of 23.17, below the 50-day MA of 24.40, and below the 200-day MA of 23.93, indicating a bearish trend. The MACD of -0.11 indicates Negative momentum. The RSI at 51.43 is Neutral, neither overbought nor oversold. The STOCH value of 55.27 is Neutral, 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 (64)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
74 Outperform | $868.03M | 12.88 | 5.99% | 3.18% | 6.06% | -15.21% | |
73 Outperform | $805.54M | 9.09 | 11.16% | 5.44% | 15.33% | 3.68% | |
73 Outperform | $805.24M | 7.63 | 16.46% | 1.91% | 14.24% | 20.84% | |
72 Outperform | $870.88M | 10.44 | 11.35% | 4.07% | 15.40% | 5.79% | |
68 Neutral | $904.41M | 13.19 | 5.68% | 5.32% | 7.79% | -8.83% | |
64 Neutral | $13.21B | 9.26 | 9.39% | 4.87% | 16.14% | -8.87% | |
61 Neutral | $806.72M | 11.26 | 10.25% | 4.40% | 41.65% | 668.73% |
* Financial Sector Average
Performance Comparison
CNOB
ConnectOne Bancorp
20.95
3.63
20.96%
BRKL
Brookline Bancorp
9.57
0.96
11.15%
SBSI
Southside Bancshares
26.53
0.74
2.87%
TMP
Tompkins Financial Corporation
55.94
13.40
31.50%
CTBI
Community Bancorp
45.64
7.09
18.39%
AMAL
Amalgamated Bank
25.99
4.37
20.21%
ConnectOne Bancorp Earnings Call Summary
Earnings Call Date: Jan 30, 2025 | % Change Since: -11.49% | Next Earnings Date: Apr 24, 2025
Earnings Call Sentiment Positive
The earnings call reflected a positive outlook with strong financial performance and growth in deposits and loans. The anticipated merger is expected to bring further benefits. While there are some concerns about increasing criticized loans and merger-related expenses, the overall sentiment remains optimistic.Highlights
Strong Financial Performance
ConnectOne Bancorp reported a 21% quarter-over-quarter and 6% year-over-year increase in net income available to common shareholders, driven by a wider net interest margin.
Deposit and Loan Growth
Core deposits increased by more than 3% quarter-over-quarter, and the loan portfolio grew by 2% quarter-over-quarter, with expectations for continued growth in 2025.
Net Interest Margin Improvement
The bank's net interest margin improved by nearly 20 basis points during the quarter, aided by a 25 basis point reduction in the cost of deposits.
Merger with First National Bank of Long Island
The merger is progressing on schedule with expected closing in the second quarter of 2025, offering significant revenue synergies and operational efficiencies.
Credit Quality Stability
Credit metrics remain sound with charge-offs at reasonable levels and nonaccrual loans trending down, indicating stable credit quality.
Lowlights
Increase in Criticized and Classified Loans
Criticized and classified loans increased from 2.2% to 2.7% of the portfolio, though still within historical ranges.
Non-Accrual Loans Slight Increase
Nonaccruals were up slightly during the quarter, though expected to trend down in the next quarter.
Merger-Related Expenses
The bank incurred $1.4 million in after-tax nonoperating adjustments, including merger expenses.
Company Guidance
During the fourth quarter of 2024 earnings call, ConnectOne Bancorp, Inc. provided guidance on several key metrics and strategic developments. The company reported a 21% quarter-over-quarter and 6% year-over-year increase in quarterly net income available to common shareholders. They highlighted a 2% quarter-over-quarter loan portfolio growth and a 3% increase in core deposits, with noninterest-bearing demand balances showing notable success. The net interest margin improved by nearly 20 basis points, largely due to a 25 basis point reduction in the cost of deposits. Looking forward, ConnectOne anticipates further margin expansion into 2025, irrespective of potential Fed rate cuts. The company is also proceeding with its merger with First National Bank of Long Island, which is expected to close in the second quarter of 2025. Post-merger, the combined company aims to achieve a net interest margin of approximately 3.10% at closing and 3.20% by 2026, with an operating return on assets projected to be 1.15% and return on tangible common equity between 12% and 13%.Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
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.