| Valuation method | Value, $ | Upside, % |
|---|---|---|
| Artificial intelligence (AI) | 24.96 | -1 |
| Intrinsic value (DCF) | 27.87 | 11 |
| Graham-Dodd Method | 23.58 | -6 |
| Graham Formula | 26.74 | 7 |
ConnectOne Bancorp, Inc. (NASDAQ: CNOB) is a regional bank holding company operating through its subsidiary, ConnectOne Bank, serving small and mid-sized businesses, professionals, and individuals in the Northern New Jersey, New York Metropolitan, and South Florida markets. The company offers a comprehensive suite of commercial and personal banking products, including checking, savings, and retirement accounts, alongside a robust lending portfolio featuring commercial real estate loans, residential mortgages, and business credit solutions. With a network of strategically located branches across New Jersey, New York, and Florida, ConnectOne emphasizes relationship-driven banking, digital convenience, and localized service. As a key player in the competitive regional banking sector, ConnectOne leverages its strong community ties and niche market expertise to drive growth. Its focus on commercial lending—particularly in real estate and small business financing—positions it as a vital financial partner in its core markets. The bank’s digital offerings, such as mobile banking and remote deposit capture, complement its traditional branch-based model, catering to evolving customer preferences.
ConnectOne Bancorp presents a compelling regional banking investment with a focus on commercial lending and a footprint in high-demand markets like New Jersey and South Florida. Its solid net income ($73.8M in the latest period) and EPS of $1.76 reflect stable profitability, while a dividend yield of ~2.5% (based on a $0.72 annual payout) adds income appeal. However, risks include exposure to commercial real estate (CRE) loans amid economic uncertainty and a beta of 1.1, indicating higher volatility than the broader market. The bank’s loan portfolio concentration in CRE and regional economic dependencies warrant caution, but its strong capitalization (evidenced by $356M in cash) and disciplined growth strategy may mitigate downside risks. Investors should monitor interest margin trends and credit quality in upcoming quarters.
ConnectOne Bancorp competes in the crowded regional banking space by emphasizing personalized service and commercial lending expertise, particularly in CRE and small business financing. Its competitive advantage lies in its deep regional presence in affluent markets like Bergen County, NJ, and West Palm Beach, FL, where it cultivates long-term client relationships. Unlike larger national banks, ConnectOne offers agility in underwriting and local decision-making, appealing to businesses underserved by megabanks. However, it faces stiff competition from both regional peers (e.g., Valley National Bancorp) and community banks with similar hyper-local strategies. Digital capabilities, while adequate, lag behind tech-forward rivals like Axos Bank, potentially limiting younger demographics. The bank’s loan/deposit ratio and net interest margin are critical metrics to watch, as they highlight its ability to outperform peers in a rising-rate environment. Its conservative balance sheet (modest debt at $783M vs. $356M cash) provides resilience but may constrain aggressive expansion.