Overview

• US commercial bank's Q1 net income and EPS rose yr/yr, driven by merger with FLIC

• Company declared an 8.3% increase in quarterly common dividend

• ConnectOne repurchased 90,000 shares in Q1; asset quality metrics improved

Outlook

• Company expects continued net interest margin expansion in coming quarters

• ConnectOne sees robust loan growth and productivity gains through merger synergies and AI workflow

• Company expects to return to pre-merger tangible book value per share within one quarter

Result Drivers

• NET INTEREST MARGIN - Sequential increase in net interest income was driven by a 12 basis-point widening of the net interest margin, benefiting from higher yields on interest-earning assets and lower deposit costs

• MERGER IMPACT - Year-over-year changes in income and expenses were primarily due to the merger with FLIC, which increased interest-earning assets, noninterest income, and noninterest expenses

• COST CONTROL & SYNERGIES - Expenses remained well-controlled as the company leveraged merger synergies and increased use of AI workflow to drive productivity gains

Company press release: ID:nGNX43yBRt

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 5 "strong buy" or "buy", no "hold" and no "sell" or "strong sell"

• The average consensus recommendation for the banks peer group is "buy"

• Wall Street's median 12-month price target for ConnectOne Bancorp Inc is $31.00, about 10.7% above its April 22 closing price of $28.01

• The stock recently traded at 9 times the next 12-month earnings vs. a P/E of 8 three months ago

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