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.
Fiscal year 2025 · change from previous year
Development 2020–2025
Business
Share of revenueChecking, money market, savings, and time deposit accounts used to fund lending and manage client relationships.
Loans to small and mid-sized businesses, professionals, and franchise borrowers, including relationship-driven credit products.
Personal banking products and consumer credit services for individuals in the bank's core markets.
Treasury, ACH, remote deposit, invoicing, and other transaction services for business clients.
Income from the securities portfolio and other balance-sheet deployment activities supporting net interest income.
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.
They buy commercial loans, deposit accounts, and cash management services to fund working capital and daily operations.
They use business banking, deposits, and credit products tailored to practice cash flows and relationship banking.
They buy personal checking, savings, time deposits, cards, and consumer lending products.
They access funding through BoeFly's marketplace and partner-bank network for franchise acquisitions and expansion.
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.
Noninterest-bearing deposits help fund lending at lower cost and support margin stability.
Digital tools and fewer branches improve efficiency while extending client reach.
New markets can diversify growth while staying within the bank's relationship-based model.
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.
- 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
- 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
- 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
- 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
- Key employee and management retentionImpact: MediumLikelihood: Medium
The relationship-based model depends on experienced bankers and senior leadership continuity.
Exposure - Regulatory and reputational riskImpact: MediumLikelihood: Low
Banking operations are heavily regulated and adverse findings can affect growth, funding, and trust.
Exposure
Accounting
Judgemental itemsManagement judgment on borrower quality and macro conditions directly affects provision expense and earnings.
Impact: Can materially change quarterly and annual profitability
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
The securities portfolio is repositioned for liquidity and rate management, creating valuation sensitivity.
Impact: Can affect accumulated other comprehensive income and capital ratios
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
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Last updated: 24/09/2026