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

ConnectOne Bancorp (NASDAQ:CNOB) announced 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. The company had revenue of $121.57 million during the quarter, compared to analyst estimates of $121.55 million. ConnectOne Bancorp had a net margin of 20.21% and a return on equity of 11.35%.

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 Up 3.1%

Shares of CNOB opened at $32.36 on Friday. The stock has a market capitalization of $1.63 billion, a P/E ratio of 10.61 and a beta of 1.05. ConnectOne Bancorp has a twelve month low of $22.07 and a twelve month high of $34.14. The company has a quick ratio of 0.97, a current ratio of 0.97 and a debt-to-equity ratio of 0.14. The firm has a fifty day simple moving average of $31.81 and a two-hundred day simple moving average of $29.01.

ConnectOne Bancorp Announces Dividend

The company also recently declared a quarterly dividend, which will be paid on Tuesday, September 1st. Shareholders of record on Friday, August 14th will be given a dividend of $0.195 per share. The ex-dividend date of this dividend is Friday, August 14th. This represents a $0.78 annualized dividend and a yield of 2.4%. ConnectOne Bancorp’s dividend payout ratio is presently 45.09%.

Analyst Upgrades and Downgrades

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

Institutional Trading of ConnectOne Bancorp

A number of institutional investors have recently modified their holdings of the company. EP Wealth Advisors LLC purchased a new position in ConnectOne Bancorp during the 4th quarter valued at about $236,000. Empowered Funds LLC increased its stake in shares of ConnectOne Bancorp by 8.0% during the fourth quarter. Empowered Funds LLC now owns 212,496 shares of the financial services provider’s stock valued at $5,572,000 after buying an additional 15,771 shares during the period. VARCOV Co. bought a new position in shares of ConnectOne Bancorp during the fourth quarter valued at approximately $422,000. Balyasny Asset Management L.P. purchased a new stake in ConnectOne Bancorp in the fourth quarter worth $534,000. Finally, Bridgeway Capital Management LLC boosted its holdings in ConnectOne Bancorp by 4.9% in the fourth quarter. Bridgeway Capital Management LLC now owns 336,710 shares of the financial services provider’s stock valued at $8,829,000 after acquiring an additional 15,771 shares in the last quarter. 67.70% of the stock is currently owned by hedge funds and other institutional investors.

Key Headlines Impacting ConnectOne Bancorp

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

• Positive Sentiment: CNOB beat earnings estimates, reporting $0.84 per share versus consensus around $0.82-$0.83, while revenue of $121.57 million also matched or slightly topped expectations. Conference Call and Earnings Release
• Positive Sentiment: The company said sequential loan growth rose 5% and core deposits increased 8%, while its net interest margin widened to 3.42%, signaling improving profitability. Q2 2026 Results
• Positive Sentiment: Management also declared its regular quarterly common dividend, which may support investor confidence in capital strength and cash generation. Q2 2026 Results
• Neutral Sentiment: The company also announced a dividend on its preferred stock, but that is likely a routine capital-management update rather than a major stock driver. Preferred Dividend Announcement
• Neutral Sentiment: Short-interest data showed no meaningful change, with reported short interest effectively at zero, so it is unlikely to be influencing the stock move.

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.