CNOBPNasdaqState Commercial BanksUS GAAP · USD

ConnectOne Bancorp, Inc.

ConnectOne Bancorp, Inc. is a U.S. bank holding company that operates primarily through ConnectOne Bank, a commercial bank focused on relationship-based banking. It serves small and mid-sized businesses, local professionals, and individuals in the New York metropolitan area and selected Florida markets, using a branch-lite model supported by technology and relationship managers. The company also owns BoeFly, a fintech marketplace that connects franchise borrowers with funding sources through a bank network.

Net income80.4m USD
+9.0 %y/y
Free cash flow101m USD
+77.5 %y/y

Fiscal year 2025 · change from previous year

Development 2020–2025

01m USD202020212022202320242025
RevenueOperating profit (EBIT)

Business

Share of revenue
Deposit products20 %

Checking, money market, savings, and time deposit accounts used to fund lending and manage client relationships.

Commercial lending45 %

Loans to small and mid-sized businesses, professionals, and franchise borrowers, including relationship-driven credit products.

Consumer and retail banking10 %

Personal banking products and consumer credit services for individuals in the bank's core markets.

Cash management and fee services10 %

Treasury, ACH, remote deposit, invoicing, and other transaction services for business clients.

Investment securities and other interest income10 %

Income from the securities portfolio and other balance-sheet deployment activities supporting net interest income.

Fintech marketplace services5 %

BoeFly's digital marketplace connects franchise borrowers with partner banks and funding solutions.

Customers

ConnectOne primarily serves small and mid-sized businesses, local professionals, and high-net-worth individuals in its metropolitan New York footprint, with additional activity in Florida. It also serves consumer and retail clients who use deposit, lending, and digital banking products, while BoeFly extends the platform to franchise borrowers nationwide. The bank's relationship model is designed to win clients through referrals, cross-selling, and on-the-ground business development.

Small and mid-sized businesses

They buy commercial loans, deposit accounts, and cash management services to fund working capital and daily operations.

Local professionals and professional practices

They use business banking, deposits, and credit products tailored to practice cash flows and relationship banking.

Individuals and retail clients

They buy personal checking, savings, time deposits, cards, and consumer lending products.

Franchise borrowers

They access funding through BoeFly's marketplace and partner-bank network for franchise acquisitions and expansion.

High-net-worth clients

They use deposit and lending products in the bank's core metropolitan markets.

Strategy

ConnectOne's strategy is to grow through relationship banking, referrals, and cross-selling while keeping funding costs disciplined by pairing loans with operating deposits. Management emphasizes a branch-lite operating model, technology investment, and strong relationship officers to support client retention and expansion into adjacent markets. Capital planning is also central, with the company balancing growth, repurchases, and dividends against regulatory capital needs.

Deposit-led relationship growthShort term

Noninterest-bearing deposits help fund lending at lower cost and support margin stability.

Technology-enabled branch-lite modelMedium term

Digital tools and fewer branches improve efficiency while extending client reach.

Selective geographic expansionMedium term

New markets can diversify growth while staying within the bank's relationship-based model.

Capital and balance-sheet disciplineShort term

Growth must be supported by regulatory capital and prudent liquidity management.

Geography

The bank's core business is concentrated in the New York metropolitan area, including New Jersey, New York City, Long Island, and the Hudson Valley. It has expanded into Florida through a West Palm Beach office and an Orlando loan production office, while BoeFly operates nationally through a digital marketplace. The company does not make loans to borrowers outside the United States, so its exposure is primarily domestic and tied to regional economic conditions.

Risks

ConnectOne's main risks come from credit exposure to small and mid-sized businesses, deposit competition, and the need to retain skilled bankers and senior management. As a regional commercial bank, it is also exposed to liquidity pressure, interest-rate sensitivity, and economic weakness in its core markets, while BoeFly adds competitive and execution risk in a fintech-enabled channel. Regulatory scrutiny, AI-related operational risk, and reputation risk can also affect growth and funding.

Sorted by severity
LowMediumHighLowMediumHighImpact →Likelihood →Small-business credit deterioration1Deposit competition2Liquidity pressure3Interest-rate risk4Key employee and management retention5Regulatory and reputational risk6
Impact is the risk’s severity and likelihood how probable it is over the next few years, both assessed from the company’s reports. Numbers match the list.
  1. Small-business credit deteriorationImpact: HighLikelihood: Medium

    The loan book is concentrated in small and mid-sized businesses that can be volatile in downturns.

    Exposure: Commercial lending in the New York metro and Florida markets

  2. Deposit competitionImpact: HighLikelihood: Medium

    Competing banks and non-bank providers can force higher deposit pricing and reduce funding advantage.

    Exposure: Core funding base for loan growth

  3. Liquidity pressureImpact: HighLikelihood: Medium

    The bank must fund loan growth, commitments, and dividends while maintaining adequate liquid resources.

    Exposure: Balance-sheet management and capital planning

  4. Interest-rate riskImpact: HighLikelihood: Medium

    Net interest income and securities values move with funding costs, loan yields, and portfolio repositioning.

    Exposure: Loan and investment portfolio

  5. Key employee and management retentionImpact: MediumLikelihood: Medium

    The relationship-based model depends on experienced bankers and senior leadership continuity.

    ExposureClient acquisitionRetentionExecution
  6. Regulatory and reputational riskImpact: MediumLikelihood: Low

    Banking operations are heavily regulated and adverse findings can affect growth, funding, and trust.

    ExposureComplianceCapitalClient relationships

Accounting

Judgemental items
Allowance for credit losses

Management judgment on borrower quality and macro conditions directly affects provision expense and earnings.

Impact: Can materially change quarterly and annual profitability

Net interest income recognition

The bank's main revenue source depends on loan yields, deposit pricing, and funding mix.

Impact: Affects margin, revenue trend, and sensitivity to rate changes

Investment securities fair value

The securities portfolio is repositioned for liquidity and rate management, creating valuation sensitivity.

Impact: Can affect accumulated other comprehensive income and capital ratios

Goodwill and intangible assets

Acquisition-related intangibles must be tested for impairment and can reduce book value if written down.

Impact: Affects equity, tangible book value, and reported earnings

Publicly listed companies with a comparable business focus.

Last updated: 24/09/2026