Connectone Bancorp Intrinsic Value – ConnectOne Bancorp Reports Disappointing Q4 Earnings and Revenue

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CONNECTONE ($NASDAQ:CNOB): ConnectOne Bancorp (CNOB) recently reported disappointing fourth quarter earnings and revenue. Despite strong performance in several segments, the overall results were unsatisfactory. The GAAP EPS reported was $0.59, which was $0.13 lower than expectations. The revenue for the quarter totaled $69.88M, which was $6.72M lower than anticipated.

ConnectOne Bancorp is a community-based banking organization providing financial services and products to individuals and businesses in the United States. The company operates through three business segments: Retail Banking, Business Banking, and Wealth Management. It remains to be seen how the company will fare in the upcoming quarters, as the effects of the pandemic continues to be felt across the economy.

Price History

The company’s stock opened at $15.7 and eventually closed at 15.5, representing a drop of 1.3% from the previous closing price of 15.7. This downward trend in the stock price indicates investors’ disappointment in the company’s performance. The company’s fourth-quarter earnings and revenue fell far below analysts’ expectations, which caused a sharp decline in its stock price.

This disappointing performance can be attributed to a number of factors, such as weak demand for certain products, competitive pressures from other companies, and a slower-than-expected economic recovery. CONNECTONE BANCORP‘s weak earnings and revenue performance in the fourth quarter highlights the importance of proper planning and execution in order to remain competitive in the current market. Going forward, the company needs to focus on developing a strong strategy to turn its fortunes around and regain investor confidence. Live Quote…

About the Company

Income Snapshot

Below shows the total revenue, net income and net margin for Connectone Bancorp. More…

Cash Flow Snapshot

Below shows the cash from operations, investing and financing for Connectone Bancorp. More…

Balance Sheet Snapshot

Below shows the total assets, liabilities and book value per share for Connectone Bancorp. More…

Key Ratios Snapshot

Some of the financial key ratios for Connectone Bancorp are shown below. More…

Analysis – Connectone Bancorp Intrinsic Value

At GoodWhale, we have performed an in-depth fundamental analysis of CONNECTONE BANCORP. Based on our proprietary Valuation Line, the fair value of the CONNECTONE BANCORP is around $28.0. This means that the current stock price of $15.5 represents a 44.6% undervaluation. Therefore, investors may find it a good opportunity to invest in CONNECTONE BANCORP’s stock. More…

Peers

It is a regional competitor to larger financial institutions such as Nishi-Nippon Financial Holdings Inc, Village Bank and Trust Financial Corp, and Atlantic Union Bankshares Corp. These companies are all involved in providing banking and financial services to their respective customers.

– Nishi-Nippon Financial Holdings Inc ($TSE:7189)

Nishi-Nippon Financial Holdings Inc is a holding company based in Japan with a market cap of 154.96B as of 2023. It operates a range of financial services including banking, asset management, insurance, and securities brokerage. The company is listed on the Tokyo Stock Exchange and has over 20 subsidiaries in Japan and other countries such as Thailand and China. Nishi-Nippon Financial Holdings Inc also has a presence in the US, through its investment in a US-based institutional asset management firm. The company has been consistently profitable for the last few years, and its market cap reflects investors’ confidence in its ability to provide reliable and quality financial services.

– Village Bank and Trust Financial Corp ($NASDAQ:VBFC)

Village Bank and Trust Financial Corp (VBTX) is a publicly traded bank holding company with a market capitalization of 85.52M as of 2023. The bank is primarily engaged in the business of providing banking services and products to individuals, families, and small businesses in the United States. Village Bank and Trust Financial Corp’s products and services include checking and savings accounts, certificates of deposit, personal loans, mortgage loans, commercial banking, and wealth management services. They also provide online and mobile banking services. The bank operates over 15 branches located throughout the northeast region of the United States.

– Atlantic Union Bankshares Corp ($NYSE:AUB)

Union Bankshares Corp is a diversified financial holding company. Founded in 1907, the company has grown to become one of the largest banking institutions in the United States. As of 2023, the company’s market cap stands at 2.85 billion, which makes it a major player in the banking industry. Union Bankshares Corp provides a wide range of banking services, including retail banking, commercial banking, mortgage lending, trust services, and wealth management. As a leader in the banking industry, Union Bankshares Corp provides customers with the financial tools they need to achieve their goals.

Summary

The drop in earnings was attributed to higher operating expenses, including deposit insurance premiums and an increase in other non-interest expenses. Despite the disappointing results, the bank remains well capitalized and its capital levels are above regulatory requirements. Investing in ConnectOne Bancorp could be a risky move, as the bank is exposed to the risk of a further economic slowdown. However, investors may find value in the company’s long-term growth potential as banking regulations continue to ease.