ConnectOne Bancorp (NASDAQ:CNOB) Posts Quarterly Earnings Results, Beats Estimates By $0.10 EPS

ConnectOne Bancorp (NASDAQ:CNOB) issued its earnings results on Thursday. The financial services provider reported $0.95 earnings per share (EPS) for the quarter, topping the consensus estimate of $0.85 by $0.10, Zacks reports. ConnectOne Bancorp had a net margin of 18.97% and a return on equity of 11.96%. The firm had revenue of $127.23 million for the quarter, compared to the consensus estimate of $125.36 million.

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

• Core profitability continued to improve: Operating EPS rose 13% sequentially to $0.95, operating return on tangible common equity exceeded 15%, and the efficiency ratio improved to 41% from 43%.
• Balance-sheet restructuring reduces risk: ConnectOne agreed to sell up to $750 million of non-relationship multifamily loans, lowering regulatory CRE concentration to 397%, reducing rent-regulated exposure to approximately 2% of loans, and improving liquidity and capital flexibility.
• Net interest margin and deposits remained favorable: The margin widened for an eighth consecutive quarter to 3.44%, with management forecasting approximately 3.50% in the fourth quarter; average client deposits grew at an 11% annualized rate and non-interest-bearing deposits rose 14%.
• The loan sale carries near-term earnings costs: A $23 million non-operating pretax charge was recognized in the third quarter, with an additional $7 million to $8 million of transaction costs expected in the fourth quarter. The preferred stock dividend reset to approximately 8.8%, and redemption may be delayed for another quarter.
• Credit trends improved broadly: Annualized operating net charge-offs fell to 7 basis points from 56 basis points, non-accrual loans declined to $64 million, and non-performing assets decreased to 0.44% of total assets.

ConnectOne Bancorp Stock Performance

CNOB traded down $0.13 during midday trading on Friday, hitting $32.69. 574,477 shares of the company traded hands, compared to its average volume of 349,191. The company has a quick ratio of 1.04, a current ratio of 1.04 and a debt-to-equity ratio of 0.61. The firm has a market capitalization of $1.64 billion, a PE ratio of 11.43 and a beta of 1.08. The company’s 50-day moving average is $31.29 and its 200 day moving average is $31.19. ConnectOne Bancorp has a 52 week low of $23.20 and a 52 week high of $34.14.

ConnectOne Bancorp Dividend Announcement

The firm also recently announced a quarterly dividend, which will be paid on Tuesday, December 1st. Shareholders of record on Friday, November 13th will be given a $0.1950 dividend. The ex-dividend date of this dividend is Friday, November 13th. This represents a $0.78 dividend on an annualized basis and a yield of 2.4%. ConnectOne Bancorp’s payout ratio is 25.57%.

More ConnectOne Bancorp News

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

• Positive Sentiment: Third-quarter adjusted earnings were $0.95 per share, above the $0.85 consensus estimate and up from $0.70 a year earlier. The company also reported revenue of $127.23 million, slightly ahead of the $125.36 million consensus, alongside a 3.44% net interest margin and an operating return on tangible common equity above 15%. ConnectOne third-quarter 2026 results
• Positive Sentiment: ConnectOne completed a roughly $750 million multifamily loan sale, reducing rent-stabilized loan exposure to about 2% of assets and bringing commercial real estate concentration below regulatory thresholds. The transaction should lower credit risk and improve the balance sheet, although it may also affect future interest income. ConnectOne stock outlook after resolving rent-stabilized loans
• Positive Sentiment: Management projects fourth-quarter net interest margin of approximately 3.50%, above the third-quarter level. Loans and average client deposits both grew at an 11% sequential annualized rate, supporting expectations for continued operating momentum. ConnectOne fourth-quarter net interest margin outlook
• Neutral Sentiment: The board declared a quarterly dividend of $0.195 per share, or $0.78 annually, with payment scheduled for December 1 to shareholders of record on November 13. The dividend provides ongoing shareholder income, but was not increased. ConnectOne cash dividend announcement
• Negative Sentiment: Net income available to common shareholders fell to $29.9 million from $40.2 million in the prior quarter and $39.5 million a year earlier. The company also reported third-quarter charge-offs, adding a reminder that credit quality remains an investor concern despite the multifamily loan restructuring. ConnectOne third-quarter charge-offs

Analyst Ratings Changes

Several brokerages recently weighed in on CNOB. Weiss Ratings reissued a “buy (b)” rating on shares of ConnectOne Bancorp in a research report on Monday, August 17th. Piper Sandler upped their price objective on ConnectOne Bancorp from $34.00 to $38.00 and gave the company an “overweight” rating in a research report on Friday, June 26th. Finally, Raymond James Financial reiterated a “market perform” rating on shares of ConnectOne Bancorp in a research note on Wednesday, July 1st. Four analysts have rated the stock with a Buy rating and one has issued a Hold rating to the stock. Based on data from MarketBeat.com, ConnectOne Bancorp currently has an average rating of “Moderate Buy” and an average target price of $35.00.

About ConnectOne Bancorp

ConnectOne Bancorp, Inc is the parent company of ConnectOne Bank, a full-service commercial bank headquartered in Englewood Cliffs, New Jersey. The bank primarily serves businesses, entrepreneurs, professionals, nonprofit organizations and individuals in the New York metropolitan area and surrounding communities.

ConnectOne Bank provides a range of commercial and personal banking products, including checking and savings accounts, certificates of deposit, commercial and industrial loans, commercial real estate financing, construction loans, residential mortgage loans and consumer lending.