Company expects full-year 2026 effective tax rate of about 28%
ConnectOne sees opportunities for growth for the balance of the year and beyond
Overview
U.S. commercial bank's Q2 adjusted EPS beat analyst expectations
Net interest income rose year/yr, driven by loan and core deposit growth
Q2 results aided by higher net interest income, lower expenses, offset by higher credit loss provision
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
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
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