Small-business credit deterioration
The loan book is concentrated in small and mid-sized businesses that can be volatile in downturns.
- Scope
- Commercial lending in the New York metro and Florida markets
- Materiality
- high
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.
| % | |
|---|---|
| Deposit products | 20% Checking, money market, savings, and time deposit accounts used to fund lending and manage client relationships. |
| Commercial lending | 45% Loans to small and mid-sized businesses, professionals, and franchise borrowers, including relationship-driven credit products. |
| Consumer and retail banking | 10% Personal banking products and consumer credit services for individuals in the bank's core markets. |
| Cash management and fee services | 10% Treasury, ACH, remote deposit, invoicing, and other transaction services for business clients. |
| Investment securities and other interest income | 10% Income from the securities portfolio and other balance-sheet deployment activities supporting net interest income. |
| Fintech marketplace services | 5% BoeFly's digital marketplace connects franchise borrowers with partner banks and funding solutions. |
ConnectOne primarily serves small and mid-sized businesses, local professionals, and high-net-worth individuals in its...
- Small and mid-sized businessesprimary
They buy commercial loans, deposit accounts, and cash management services to fund working capital and daily operations.
- Local professionals and professional practicesprimary
They use business banking, deposits, and credit products tailored to practice cash flows and relationship banking.
- Individuals and retail clientssecondary
They buy personal checking, savings, time deposits, cards, and consumer lending products.
- Franchise borrowerssecondary
They access funding through BoeFly's marketplace and partner-bank network for franchise acquisitions and expansion.
- High-net-worth clientssecondary
They use deposit and lending products in the bank's core metropolitan markets.
The bank's core business is concentrated in the New York metropolitan area, including New Jersey, New York City, Long...
- •Core footprint is the New York metro area and surrounding counties
- •Business spans New Jersey, NYC, Long Island, and the Hudson Valley
- •Florida presence includes West Palm Beach and Orlando lending activity
- •BoeFly has nationwide reach through a digital franchise marketplace
- •Lending is limited to U.S. borrowers, reducing cross-border exposure
ConnectOne's strategy is to grow through relationship banking, referrals, and cross-selling while keeping funding costs...
01
Deposit-led relationship growthshort-term
Noninterest-bearing deposits help fund lending at lower cost and support margin stability.
02
Technology-enabled branch-lite modelmedium-term
Digital tools and fewer branches improve efficiency while extending client reach.
03
Selective geographic expansionmedium-term
New markets can diversify growth while staying within the bank's relationship-based model.
04
Capital and balance-sheet disciplineshort-term
Growth must be supported by regulatory capital and prudent liquidity management.
ConnectOne's main risks come from credit exposure to small and mid-sized businesses, deposit competition, and the need...
Deposit competition
Competing banks and non-bank providers can force higher deposit pricing and reduce funding advantage.
- Scope
- Core funding base for loan growth
- Materiality
- high
Liquidity pressure
The bank must fund loan growth, commitments, and dividends while maintaining adequate liquid resources.
- Scope
- Balance-sheet management and capital planning
- Materiality
- high
Interest-rate risk
Net interest income and securities values move with funding costs, loan yields, and portfolio repositioning.
- Scope
- Loan and investment portfolio
- Materiality
- high
Key employee and management retention
The relationship-based model depends on experienced bankers and senior leadership continuity.
- Scope
- Client acquisition, retention, and execution
- Materiality
- medium
Regulatory and reputational risk
Banking operations are heavily regulated and adverse findings can affect growth, funding, and trust.
- Scope
- Compliance, capital, and client relationships
- Materiality
- medium
Allowance for credit losses
Can materially change quarterly and annual profitability
Net interest income recognition
Affects margin, revenue trend, and sensitivity to rate changes
Investment securities fair value
Can affect accumulated other comprehensive income and capital ratios
Goodwill and intangible assets
Affects equity, tangible book value, and reported earnings
: 28.4.2026