ConnectOne: Merger Benefits Persist, But Loan Quality Requires Monitoring
ConnectOne Bancorp remains a "Buy," supported by robust Q1 results, NIM expansion, and successful integration of the FLIC acquisition. CNOB's deposit growth and low-cost funding are fueling above-industry loan growth, with NIM expanding 12 bps to 3.39% in Q1. Credit quality is strong overall, though rent-stabilized multifamily exposure presents a watchpoint; reserves and loss-absorbing capacity remain conservative.