ConnectOne Bancorp (NASDAQ:CNOB) Releases Earnings Results, Beats Expectations By $0.02 EPS

ConnectOne Bancorp (NASDAQ:CNOB) released its earnings results on Thursday. The financial services provider reported $0.84 earnings per share (EPS) for the quarter, topping the consensus estimate of $0.82 by $0.02, Zacks reports. ConnectOne Bancorp had a return on equity of 10.17% and a net margin of 13.21%.The company had revenue of $121.57 million for the quarter, compared to analyst estimates of $121.55 million.

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

• Earnings and profitability accelerated in Q2, with net income available to common rising to $40.2 million, or $0.80 per share, and operating PPNR improving to 1.94% from 1.81% last quarter.
• Net interest margin expanded for the seventh straight quarter to 3.42%, helped by loan repricing; management said the trend should continue through 2026 and into 2027, even as deposit costs edge higher.
• Core growth remained solid, with loans growing at a mid-single-digit annualized pace and client deposits up 8% annualized, including 20% annualized growth in non-interest-bearing demand deposits.
• Credit costs were impacted by one large rent-stabilized multifamily relationship, which led to a $13.8 million charge-off, a $8.3 million total provision for loan losses, and higher non-performing assets at 0.55% of total assets.
• Capital management remains active, with tangible book value per share up 3.1% sequentially to $24.66, 90,000 shares repurchased year-to-date, and the board maintaining the quarterly dividend at $0.195 per share while considering future preferred share actions.

ConnectOne Bancorp Trading Down 3.8%

Shares of CNOB traded down $1.25 during trading hours on Thursday, hitting $31.75. 214,846 shares of the stock were exchanged, compared to its average volume of 364,975. The company has a debt-to-equity ratio of 0.14, a current ratio of 0.97 and a quick ratio of 0.97. The business has a 50-day moving average of $31.70 and a 200-day moving average of $28.95. ConnectOne Bancorp has a fifty-two week low of $22.07 and a fifty-two week high of $34.14. The firm has a market capitalization of $1.60 billion, a P/E ratio of 18.37 and a beta of 1.05.

Institutional Trading of ConnectOne Bancorp

Several hedge funds have recently modified their holdings of the stock. Watershed Asset Management L.L.C. acquired a new position in shares of ConnectOne Bancorp during the fourth quarter worth approximately $396,000. PCM Encore LLC bought a new stake in shares of ConnectOne Bancorp during the fourth quarter worth about $278,000. LPL Financial LLC increased its position in shares of ConnectOne Bancorp by 13.3% during the fourth quarter. LPL Financial LLC now owns 9,467 shares of the financial services provider’s stock worth $248,000 after acquiring an additional 1,114 shares in the last quarter. Zurcher Kantonalbank Zurich Cantonalbank raised its holdings in shares of ConnectOne Bancorp by 24.1% in the 3rd quarter. Zurcher Kantonalbank Zurich Cantonalbank now owns 12,346 shares of the financial services provider’s stock worth $306,000 after acquiring an additional 2,397 shares during the last quarter. Finally, BNP Paribas Financial Markets raised its holdings in shares of ConnectOne Bancorp by 16.7% in the 2nd quarter. BNP Paribas Financial Markets now owns 18,686 shares of the financial services provider’s stock worth $433,000 after acquiring an additional 2,672 shares during the last quarter. Institutional investors own 67.70% of the company’s stock.

Analysts Set New Price Targets

Several equities research analysts recently weighed in on CNOB shares. Weiss Ratings raised shares of ConnectOne Bancorp from a “buy (b-)” rating to a “buy (b)” rating in a research report on Wednesday, May 20th. Keefe, Bruyette & Woods raised their target price on shares of ConnectOne Bancorp from $32.00 to $34.00 and gave the company an “outperform” rating in a report on Friday, April 24th. Piper Sandler boosted their target price on shares of ConnectOne Bancorp from $34.00 to $38.00 and gave the company an “overweight” rating in a research report on Friday, June 26th. Hovde Group upped their price target on shares of ConnectOne Bancorp from $32.00 to $34.00 and gave the stock an “outperform” rating in a report on Friday, April 24th. Finally, Raymond James Financial reiterated a “market perform” rating on shares of ConnectOne Bancorp in a research report on Wednesday, July 1st. Four investment analysts have rated the stock with a Buy rating and one has assigned a Hold rating to the company. According to MarketBeat.com, the company currently has an average rating of “Moderate Buy” and an average target price of $35.00.

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.