ConnectOne Bancorp Q2 adjusted EPS beats estimates on loan, deposit growth

ConnectOne Bancorp, Inc.

ConnectOne Bancorp, Inc.

CNOB

0.00


Overview

  • U.S. commercial bank's Q2 adjusted EPS beat analyst expectations

  • Net interest income rose yr/yr, driven by loan and core deposit growth

  • Q2 results aided by higher net interest income, lower expenses, offset by higher credit loss provision


Outlook

  • Company expects full-year 2026 effective tax rate of about 28%

  • ConnectOne sees opportunities for growth for the balance of the year and beyond


Result Drivers

  • LOAN AND DEPOSIT GROWTH - Sequential loan growth of 5% and core deposit growth of 8% annualized supported higher net interest income

  • NET INTEREST MARGIN EXPANSION - Net interest margin widened to 3.42%, benefiting from loan repricing and higher yields on interest-earning assets

  • HIGHER CREDIT LOSS PROVISION - Provision for credit losses rose due to a $13.8 mln charge-off on New York City multi-family loans, partly offset by reserve releases


Company press release: ID:nGNX83WRwW


Key Details

Metric

Beat/Miss

Actual

Consensus Estimate

Q2 Adjusted EPS

Beat

$0.84

$0.82 (5 Analysts)

Q2 Loss Per Share

$0.80

Q2 Net Interest Income

$113.64 mln

Q2 Loan Loss Provision

$8.30 mln


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 $35.00, about 6.1% above its July 22 closing price of $33.00

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


Reuters Recommended Reads

  • July 22 - Live Oak Bancshares Q2 revenue beats estimates on loan, deposit growth

  • July 22 - Cathay General Bancorp Q2 net income rises on higher net interest margin

  • July 21 - Capital One second-quarter profit rises on higher interest income


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