Latest news with #CNOB
Yahoo
11-06-2025
- Business
- Yahoo
ConnectOne Bank CEO talks completed merger, macro uncertainty
ConnectOne Bancorp (CNOB) has completed its merger with the First of Long Island Corp., expanding its total assets under management to $14 billion. ConnectOne Bank Founder and CEO Frank Sorrentino speaks with Josh Lipton about his company's expansion, new product offerings in the New York Metro market, banking and M&A regulations under the Trump administration, and how the regional bank is viewing the commercial real estate market and the odds of an economic soft landing. To watch more expert insights and analysis on the latest market action, check out more Asking for a Trend here. ConnectOne Bancorp is merging with the First of Long Island Corporation. The move coming against the backdrop of an M&A landscape that's starting to show some signs of life. Joining me now is Frank Sorrentino, founder and CEO of ConnectOne Bank. Frank, it is good to see you. Uh, let's talk about this deal, uh, Frank, because you did complete the merger. Walk us through what it's going to mean for ConnectOne and your clients, Frank. Well, for, you know, for all of us, uh, it means we're now a $14 billion asset bank in the greater New York metro market with a phenomenal footprint across all of Northern New Jersey, the five boroughs, out on the Long Island, and into the Hudson Valley. Uh, and having a larger balance sheet allows us to do more for our clients. It allows us to invest more in technology for products and services for them. It allows us to do bigger loan products and more diversified types of, uh, product offerings for all of our clients within that market. As you know, the New York metro market is probably the largest in the United States. It represents some, somewhere around 10 or 11% of our GDP. So, uh, being bigger and, uh, being able to stand up against all the other institutions that are here is, I think, uh, a, a good thing for us to be doing. More broadly, Frank, you know, there was this expectation with Trump back in the White House that, uh, listen, you were going to see cut regulation, cut the red tape, it was just going to get easier to get deals done. Is that what you've been sort of seeing and experiencing here? Look, I, I didn't think it was difficult to get this deal done. Uh, we've had a really terrific relationship with our regulators going forward. Uh, yes, I do think we are going to see a change in the regulatory framework. Um, you know, I don't like to think about things in terms of too, you know, big regulation, small regulation, too much, too little. I like to think about appropriate sized regulation for institutions based on their size, their complexity, what they need to do. I do think that there will be a focus on permitting more M&A activity as the banking system changes. And I think that's smart regulation, and I think that's what we really need to focus more on. Smarter regulation to allow our economy to function. Banks are the, you know, they're the oil, the grease that, you know, makes the economy run. And so having a smartly regulated industry is probably a good place to go to. Frank, let's talk about the macro as well here. You know, Bloomberg did a report, I'm sure you saw this, that City is set to put aside hundreds of millions of dollars more than it did last quarter to account for potential losses on loans. So, a sign there that maybe big banks were preparing for what they see as a weaker, just weakening economic health. And I'm just curious what you see, Frank. You know, I've been hearing for probably 18 to 24 months that we are either in a recession, going to a recession, thinking about a recession. Soft landing, not so soft landing, whatever. From my perspective, we've been in a pretty robust economy for the last, I don't know how many years. And as I speak to our clients today on the ground, and it really doesn't matter what businesses they're in. Generally, things are pretty good. Now, again, I'm speaking about the New York Metro market, but people are feeling pretty good. Employment is strong, and that is the biggest, you know, variable in all of this. People have jobs, they have money, their, you know, their earnings are going up, their wages are going up. Uh, people are feeling good, they spend money, and the economy does well. Are there, you know, sort of some bubbles here and there? Things that we should be concerned about? Yes. Have there been some issues relative to whether it's liberation day, the tariffs, uh, you know, some apprehension about where the economy is going? Sure. But overall, our clients I think are doing quite well in this economy, and it's showing up in all the numbers. It's showing up in the employment numbers. It's showing up in consumer spending. It's showing up in credit trends. Even though some of those institutions you mentioned may have been putting away reserves, the credit trends have been quite benign. What about the commercial real estate market, Frank? I'm curious what you're seeing there in the tri-state area. So I love when people ask me about commercial real estate, so that's like walking into Baskin-Robbins and asking for an ice cream. Like, what part of it are we talking about? Are we talking about the multi-family portfolios, the office portfolios, retail portfolios? They all have a different, you know, sort of flavor to them. The office market, which is what's been really in focus, uh, past COVID, from because of remote work, has really made a stunning comeback. There's an enormous amount of activity within the office space. We're seeing buildings trade, we're seeing credit loosening up. We're seeing office buildings in central business, uh, New York City, getting record rents. So, definitely a change in the trend there. There are still some troubled assets, there are still some places where there are pockets of weakness, uh, but overall that is healing itself well. And the multi-family sector, right now the market's pretty tight. And so a lot of those buildings are still trading at, at, you know, really, uh, high valuations. The one place where there's a little bit of weakness is in the rent regulated portfolios, and hopefully there'll be some changes in that 2019 regulation to loosen up some of the challenges that are there. Yeah, Frank, Frank, I got to tell you, on that train I take every morning from New Jersey to New York City, it is jam-packed, Frank. People are back in the office. Thank you, sir. It's always great to have you on the show. You're welcome. Great to be with you. Errore nel recupero dei dati Effettua l'accesso per consultare il tuo portafoglio Errore nel recupero dei dati Errore nel recupero dei dati Errore nel recupero dei dati Errore nel recupero dei dati
Yahoo
11-06-2025
- Business
- Yahoo
ConnectOne Bank CEO talks completed merger, macro uncertainty
ConnectOne Bancorp (CNOB) has completed its merger with the First of Long Island Corp., expanding its total assets under management to $14 billion. ConnectOne Bank Founder and CEO Frank Sorrentino speaks with Josh Lipton about his company's expansion, new product offerings in the New York Metro market, banking and M&A regulations under the Trump administration, and how the regional bank is viewing the commercial real estate market and the odds of an economic soft landing. To watch more expert insights and analysis on the latest market action, check out more Asking for a Trend here.
Yahoo
26-03-2025
- Business
- Yahoo
ConnectOne Bancorp Shares Are Rarely This Cheap, Analyst Upgrades Stock And Price Forecast
ConnectOne Bancorp, Inc. (NASDAQ:CNOB) shares are trading higher on Wednesday. Keefe, Bruyette & Woods analyst Tim Switzer upgraded the stock on Tuesday from Market Perform to Outperform and raised the price forecast from $31 to $32. The analyst notes that the shares are trading at a notable discount to both peers and their historical medians, even though the company's key metrics generally rank in the top quartile among SMID-cap banks. The bullish stance also reflects several potential catalysts this year that could drive the stock higher. Switzer notes the key positives, including the accretion from the merger closure with The First of Long Island Corporation (NASDAQ:FLIC), organic net interest margin (NIM) expansion, improvement in CRE credit concerns, and benefits from additional Fed rate cuts. CNOB ranks in the top decile of banks for PPNR/share and EPS growth through 2026 while generating an ROTCE above the peer median, adds the analyst. The analyst notes that, during a meeting at KBW's Financial Services Conference in February, the company's management shared that the initial integration efforts for FLIC were progressing smoothly, expressing confidence in meeting or surpassing all initial targets. Switzer expects CNOB to achieve CAGRs of +32% for PPNR/share and +33% for EPS from 2024 to 2026, both in the top decile of peers over that period. Price Action: CNOB shares are up 3.41% at $24.54 at the last check Wednesday. Read Next:Photo via Shutterstock. Date Firm Action From To Jan 2022 Raymond James Downgrades Strong Buy Outperform Jul 2021 Raymond James Maintains Strong Buy Feb 2021 Seaport Global Initiates Coverage On Buy View More Analyst Ratings for CNOB View the Latest Analyst Ratings Up Next: Transform your trading with Benzinga Edge's one-of-a-kind market trade ideas and tools. Click now to access unique insights that can set you ahead in today's competitive market. Get the latest stock analysis from Benzinga? This article ConnectOne Bancorp Shares Are Rarely This Cheap, Analyst Upgrades Stock And Price Forecast originally appeared on © 2025 Benzinga does not provide investment advice. All rights reserved. Sign in to access your portfolio
Yahoo
31-01-2025
- Business
- Yahoo
ConnectOne Bancorp Inc (CNOB) Q4 2024 Earnings Call Highlights: Strong Net Income Growth and ...
Quarterly Net Income: Increased 21% quarter-over-quarter and 6% year-over-year. Core Deposits Growth: Increased more than 3% quarter-over-quarter. Loan Portfolio Growth: 2% quarter-over-quarter. Net Interest Margin: Improved by nearly 20 basis points during the quarter. Loan-to-Deposit Ratio: Declined from 108% to 106%. Net Interest Margin Projection: Expected to improve to approximately 2.90% in the first quarter of 2025. Operating Expenses: Projected to increase 2% to 3% sequentially in the first quarter of 2025. Provision for Credit Losses: $3.5 million for the quarter. Effective Tax Rate: Expected to return to 26% to 27% in the first quarter. Merger Impact on Net Interest Margin: Expected to enhance by about 10 basis points post-merger. Return on Tangible Common Equity Projection: Expected to be in the 12% to 13% range post-merger. Warning! GuruFocus has detected 3 Warning Sign with CNOB. Release Date: January 30, 2025 For the complete transcript of the earnings call, please refer to the full earnings call transcript. ConnectOne Bancorp Inc (NASDAQ:CNOB) reported a 21% quarter-over-quarter increase in net income available to common shareholders, driven by a wider net interest margin. The company experienced solid growth in both loans and core deposits, with a 3% increase in core deposits quarter-over-quarter. The merger with First National Bank of Long Island is progressing on schedule, expected to close in the second quarter of 2025, which is anticipated to enhance the net interest margin by about 10 basis points. ConnectOne Bancorp Inc (NASDAQ:CNOB) has a strong loan pipeline and expects continued loan portfolio growth, with a projected 2% increase in average loans for the first quarter of 2025. The company has maintained sound and stable credit trends, with charge-offs at reasonable levels and a low delinquency rate of just 4 basis points. Non-accrual loans increased slightly during the quarter, although they are expected to trend down in the next quarter. The company's criticized and classified loans increased from 2.2% to 2.7% as a percentage of the portfolio, indicating some pressure on credit quality. Operating expenses are projected to increase by 2% to 3% sequentially in the first quarter of 2025, which could impact profitability. The effective tax rate is expected to return to the 26% to 27% level in the first quarter, after a decrease due to year-end adjustments. The company plans to raise $175 million to $200 million in sub debt, which may affect its capital structure and cost of capital. Q: Can you provide insights into the loan growth and pipeline, given the better-than-expected results this quarter? A: Frank Sorrentino, CEO, explained that the loan pipeline has strengthened throughout the year, with a focus on relationship business. The hesitancy seen earlier in 2024 has decreased, leading to a strong fourth quarter and positive outlook for 2025. Bill Burns, CFO, added that loans were booked at 7.45% in the fourth quarter, with a pipeline weighted average rate of 7.62%. Q: What drove the noninterest-bearing deposit growth, and what are the expectations for deposit growth in 2025? A: Frank Sorrentino noted that the growth was due to a focus on high-quality relationship business and market disruptions leading clients to seek new banking partners. Bill Burns added that core non-interest-bearing demand is trending upwards, although the 50% annualized growth rate seen may not continue. Q: Are you planning a capital raise in the first quarter, and will it include repricing of sub debt? A: William Burns confirmed plans for a capital raise, including $100 million as part of the merger transaction and $75 million for repricing, totaling $175 million to $200 million. Q: How does the CRE concentration factor into loan growth, given its role in the fourth quarter? A: William Burns clarified that while the growth appears as CRE concentration, much of it was owner-occupied and construction loans. The CRE concentration is expected to trend downward. Q: What are the assumptions behind the NIM outlook, and how could rate changes impact it? A: William Burns explained that the NIM outlook assumes no rate cuts, with a projected 5 basis point increase in margin, 10 basis points from the merger, and potentially another 5 basis points from rate cuts, leading to a 3.20% NIM by 2026. For the complete transcript of the earnings call, please refer to the full earnings call transcript. This article first appeared on GuruFocus.
Washington Post
30-01-2025
- Business
- Washington Post
ConnectOne: Q4 Earnings Snapshot
ENGLEWOOD CLIFFS, N.J. — ENGLEWOOD CLIFFS, N.J. — ConnectOne Bancorp Inc. (CNOB) on Thursday reported net income of $20.4 million in its fourth quarter. The Englewood Cliffs, New Jersey-based bank said it had earnings of 49 cents per share. Earnings, adjusted for non-recurring costs, were 52 cents per share. The holding company for ConnectOne Bank posted revenue of $131.8 million in the period. Its revenue net of interest expense was $68.5 million, which beat Street forecasts.
