ConnectOne Bancorp Inc. Depositary Shares each representing a 1/40th interest in a share of 5.25% Fixed-Rate Reset Non-Cumulative Perpetual Preferred Stock Series A (CNOBP)

FairStock Score: 73/100 — STEADY

Key Financials

AI Analysis

AI-generated, general educational analysis — not personal investment advice.

As a preferred-stock investor, I start with the issuer, not the security. ConnectOne Bancorp is a $1.3B market-cap bank holding company serving small and mid-sized businesses. The common stock at the 2026-10-13 close trades at 8.05 times earnings and 0.84 times book, FairStock calculations, with a FairStock ROE of 10.25%—not a franchise with a wide moat, but a reasonably profitable regional bank. Filed results show fiscal year 2025, ended 2025-12-31, net income of $80.4M and diluted EPS of $1.63, versus fiscal year 2024, ended 2024-12-31, net income of $73.8M and EPS of $1.76, and fiscal year 2023, ended 2023-12-31, net income of $87.0M and EPS of $2.07. So profits have not grown steadily; the Lynch category is SLOW GROWER, with profit 2.4% a year over five years. However, Q1 2026, the quarter ended 2026-03-31, had net income of $37.8M and diluted EPS of $0.72, and Q2 2026, the quarter ended 2026-06-30, had $41.7M and $0.80, which is a strong recent run. For the 5.25% non-cumulative perpetual preferred, the key is dividend safety. At $25.35, the current yield is about 5.18%, essentially the coupon on a $25 depositary liquidation value. That is fair compensation, not a bargain. The main risks are credit deterioration and the non-cumulative feature: missed dividends do not accrue. I do not have CET1, net interest margin, nonperforming loans, or reserve coverage, so I cannot fully underwrite the bank's balance-sheet risk. The preferred sits above common but below deposits and debt. With a thin premium to liquidation and no full credit data, I would call it a fair-value income security, not a steal.

In plain English: ConnectOne Bancorp is the parent of a regional bank that lends mainly to small and mid-sized businesses and professionals. Its preferred shares pay a 5.25% dividend and trade at $25.35, close to the $25 face amount, so the price looks roughly fair for the income. The bank earns moderate profits and has had uneven results in recent years, but its latest reported quarters were stronger.

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Data as of 2026-10-13 close · note generated 2026-10-15 · model deepseek-flash

Sources (SEC EDGAR): fiscal Q2 2026 10-Q (period ended 2026-06-30) · fiscal Q1 2026 10-Q (period ended 2026-03-31) · fiscal Q4 2025 10-K (period ended 2025-12-31) · fiscal Q3 2025 10-K (period ended 2025-09-30) · FY2025 10-K (period ended 2025-12-31) · FY2024 10-K (period ended 2024-12-31) · FY2023 10-K (period ended 2023-12-31)

Fundamentals from company filings and market-data providers; prices are end-of-day, not real-time. AI-generated analysis is general and educational — not personal investment advice. Scoring methodology · Score test · Disclaimer