ConnectOne Bancorp Q2 adjusted EPS beats estimates on loan, deposit growth

Overview

• U.S. commercial bank's Q2 adjusted EPS beat analyst expectations

• Net interest income rose yr/yr, driven by loan and core deposit growth

• Q2 results aided by higher net interest income, lower expenses, offset by higher credit loss provision

Outlook

• Company expects full-year 2026 effective tax rate of about 28%

• ConnectOne sees opportunities for growth for the balance of the year and beyond

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

Company press release: ID:nGNX83WRwW

Key Details

Analyst Coverage

• 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

Reuters Recommended Reads

• July 22 - Live Oak Bancshares Q2 revenue beats estimates on loan, deposit growth

• July 22 - Cathay General Bancorp Q2 net income rises on higher net interest margin

• July 21 - Capital One second-quarter profit rises on higher interest income

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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)