ConnectOne Bancorp, Inc. (CNOB) Stock Analysis

Why this analysis is different

• A sector-relative MoonshotScore — five pillars (business quality, financial safety, valuation, growth durability, momentum) re-ranked nightly against the full universe of US-listed common stocks.
• An AI Council read across up to eight perspectives — value, macro, quantitative, and momentum lenses — that shows where they disagree instead of averaging the tension away.
• Figures come straight from FMP and Yahoo Finance filings data. The AI writes the narrative around the numbers — it never edits the numbers.

ConnectOne Bancorp, Inc. (CNOB) Financial Services Profile

ConnectOne Bancorp, Inc. (CNOB) is a regional bank holding company serving the Northern New Jersey, New York Metropolitan area, and South Florida markets. It distinguishes itself through relationship-focused commercial banking for small and mid-sized businesses, offering a suite of deposit and loan products and digital banking solutions in a competitive banking landscape.

What Is the Investment Thesis for CNOB?

With a P/E ratio of 9.35 and a dividend yield of 2.40%, CNOB offers a blend of value and income. A key value driver is the company's ability to maintain a strong profit margin of 13.4% and gross margin of 51.4%. Growth catalysts include expansion within its existing markets and strategic investments in digital banking platforms. Potential risks include interest rate sensitivity and competition from larger regional and national banks. The company's beta of 1.08 suggests market-correlated volatility.

Based on FMP financials and quantitative analysis

CNOB Key Highlights

Market capitalization of $1.59B, reflecting investor confidence in the company's growth potential.

• Profit margin of 13.4% indicates efficient operations and strong profitability.
• Gross margin of 51.4% demonstrates the company's ability to generate revenue from its core banking services.
• Dividend yield of 2.40% provides an attractive income stream for investors.
• P/E ratio of 9.35 suggests a reasonable valuation relative to earnings.

Who Are CNOB's Competitors?

CNOB is benchmarked below against 8 industry peers on price, market cap, and our AI MoonshotScore.

AI Score by Stock Expert AI · Price data: FMP / Yahoo Finance

What Are CNOB's Key Strengths?

Strong presence in attractive markets.

• Comprehensive suite of banking products and services.
• Experienced management team.
• Solid financial performance.

What Are CNOB's Weaknesses?

Limited geographic diversification.

• Reliance on interest income.
• Smaller size compared to larger regional banks.
• Higher beta indicates more volatility.

What Could Drive CNOB Stock Higher?

Potential interest rate hikes by the Federal Reserve could increase net interest margin.

• Continued expansion in the South Florida market.
• Further development and deployment of digital banking solutions.
• Strategic acquisitions of smaller banks or fintech companies.

What Are the Key Risks for CNOB?

Financial-distress signal — its Altman Z-Score of 0.32 sits in the distress zone (elevated bankruptcy risk).

• Economic downturn could lead to increased loan defaults.
• Increased competition from larger regional and national banks.
• Fluctuations in interest rates could impact net interest margin.
• Regulatory changes could increase compliance costs.

What Are the Growth Opportunities for CNOB?

• Expansion in South Florida Market: ConnectOne has the opportunity to further expand its presence in the South Florida market, capitalizing on the region's strong economic growth and attractive demographics. The South Florida banking market is estimated to be worth over $50 billion in deposits, offering significant potential for CNOB to increase its market share through strategic branch openings and targeted marketing initiatives. Timeline: Ongoing.
• Digital Banking Platform Enhancement: Investing in and enhancing its digital banking platform can attract and retain customers, particularly tech-savvy small businesses and individuals. The digital banking market is projected to reach $9 trillion in transaction value by 2028. By offering innovative online and mobile banking solutions, CNOB can improve customer experience, reduce operating costs, and drive revenue growth. Timeline: Ongoing.
• Strategic Acquisitions: ConnectOne can pursue strategic acquisitions of smaller community banks or fintech companies to expand its geographic footprint and service offerings. The M&A activity in the banking sector is expected to remain robust, with opportunities to acquire undervalued assets and synergistic businesses. This can provide immediate scale and diversification. Timeline: Ongoing.
• Increased Commercial Lending: Focus on increasing commercial lending activities to small and mid-sized businesses in its target markets. The commercial lending market is projected to grow at a rate of 4-5% annually. By offering competitive loan products and personalized service, CNOB can capture a larger share of this market and drive revenue growth. Timeline: Ongoing.
• Fee Income Growth: Focus on increasing fee income through wealth management, insurance, and other financial services. The wealth management market is expected to grow at a rate of 6-7% annually. By offering a comprehensive suite of financial services, CNOB can diversify its revenue streams and improve profitability. Timeline: Ongoing.

What Are CNOB's Competitive Advantages?

• Strong relationships with local businesses and professionals.
• Established presence in attractive markets.
• Comprehensive suite of banking products and services.
• Experienced management team.

What Does CNOB Do?

ConnectOne Bancorp, Inc., incorporated in 1982 and headquartered in Englewood Cliffs, New Jersey, operates as the bank holding company for ConnectOne Bank. The bank provides a comprehensive suite of commercial banking products and services tailored to small and mid-sized businesses, local professionals, and individuals. Its geographic footprint spans the Northern New Jersey and New York Metropolitan area, and South Florida market. ConnectOne offers a variety of deposit accounts, including personal and business checking, retirement, money market, and time and savings accounts. The company’s lending activities encompass both consumer and commercial loans, such as secured and unsecured business loans, revolving lines of credit, commercial mortgage loans, residential mortgages, home equity loans, bridge loans, and commercial construction and real estate loans. Beyond traditional banking services, ConnectOne provides check cards, ATM cards, credit cards, wire transfers, automated teller services, Internet banking, treasury direct, automated clearing house origination, mobile banking, safe deposit boxes, and remote deposit capture services. The bank operates through a network of banking offices strategically located across its target markets, including Bergen County, Union County, Morris County, Essex County, Hudson County, Monmouth County, Manhattan, Nassau County, Astoria, the Hudson Valley, and West Palm Beach. Formerly known as Center Bancorp, Inc., the company rebranded as ConnectOne Bancorp, Inc. in July 2014, reflecting its commitment to connectivity and customer-centric banking solutions.

What Products and Services Does CNOB Offer?

• Provides personal and business checking accounts.
• Offers retirement, money market, and time and savings accounts.
• Provides commercial and consumer loans.
• Offers revolving lines of credit.
• Provides commercial mortgage loans.
• Offers residential mortgages and home equity loans.
• Provides online and mobile banking services.

How Does CNOB Make Money?

• Generates revenue through interest income from loans.
• Earns fees from deposit accounts and other services.
• Manages risk through credit analysis and loan diversification.
• Expands market share through organic growth and strategic acquisitions.

What Industry Does CNOB Operate In?

ConnectOne Bancorp, Inc. operates within the regional banking sector, which is characterized by increasing consolidation and technological disruption. The industry is influenced by interest rate fluctuations, regulatory changes, and economic cycles. Competition is intense, with regional banks vying for market share against larger national players and fintech companies. ConnectOne differentiates itself through its focus on relationship banking and its presence in the attractive Northern New Jersey, New York Metropolitan area, and South Florida markets. The regional banking sector is expected to see moderate growth, driven by increased lending activity and fee income.

Who Are CNOB's Key Customers?

• Small and mid-sized businesses.
• Local professionals.
• Individuals in Northern New Jersey and New York Metropolitan area.
• Individuals in South Florida market.

Company Profile

ConnectOne Bancorp, Inc. operates in the Banks - Regional industry within the Financial Services sector. It is headquartered in Englewood Cliffs, US. The company is led by CEO Frank S. Sorrentino. CNOB has traded publicly since 1994.

Return on equity for ConnectOne Bancorp, Inc. stands at 6.3%, a gauge of how efficiently it converts shareholder capital into profit. Return on assets is 0.7%, showing how much profit it generates from its asset base. CNOB trades at a trailing price-to-earnings ratio of 9.35, below the Financial Services sector average of ~17.50x. Its free cash flow yield is 6.0%, a gauge of the cash the business throws off relative to its market value. Its earnings yield is 5.8%, the inverse of the P/E and a quick read on earnings relative to price.

CNOB Valuation & Market Position

With a $1.59B market cap, ConnectOne Bancorp, Inc. sits in the small-cap segment of the market. Analyst price targets span from $34.00 to $34.00, with a consensus of $34.00. At the current price of $31.59, that implies approximately 8% upside potential. Relative to its peer group, CNOB's quantitative score of 68/100 is below the peer average of 90/100.

Quarterly Financial Performance: ConnectOne Bancorp, Inc.

Revenue for ConnectOne Bancorp, Inc. came in at $29.4M during Q2 FY2026, a 84.3% contraction versus the preceding quarter. The company recorded net income of $41.7M, with diluted EPS of $0.83. Revenue has contracted over three consecutive quarters, which investors in this small-cap Financial Services stock should monitor closely. Across the four most recent quarters, CNOB averaged $0.83 in diluted EPS.

ConnectOne Bancorp, Inc.'s Piotroski F-Score is 5/9, a 9-point checklist of profitability, leverage and efficiency — a middling fundamental profile. Its Altman Z-Score of 0.32 places it in the distress zone, a signal of elevated financial risk.

ConnectOne Bancorp, Inc. has beaten Wall Street's EPS estimate in 7 of its last 8 reported quarters — a consistent record of delivering on expectations. Reported results have landed about 8.0% above estimates on average.

Over the past six months, ConnectOne Bancorp, Inc. insiders filed 30 SEC Form 4 transactions — 4 sales and 26 purchases. On net that is roughly 138K shares acquired (about $153K) — insiders putting money in tends to read as conviction.

CNOB Financials

CNOB Latest News

CNOB Analyst Consensus

CNOB MoonshotScore

CNOB Financial Services Stock FAQ

Disclaimer: This content is for informational purposes only and does not constitute investment advice. Always do your own research and consult a financial advisor.

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