ConnectOne Bancorp, Inc. (CNOB): Business Model Canvas [Dec-2025 Updated]

You're probably digging into ConnectOne Bancorp, Inc. to see how they're stitching together their strategy after the recent moves, especially with total assets hitting around $14.02 Billion as of late 2025. Honestly, mapping out a regional bank's engine room-from their 3.11% Net Interest Margin to their specialized franchise financing via BoeFly-can feel like decoding a complex balance sheet. So, I've broken down their entire operation into the nine essential blocks of the Business Model Canvas, showing you exactly where they make money, who they serve, and how they manage risk, like keeping nonperforming assets tight at 0.28%. Take a look below; this canvas cuts right to the core of ConnectOne Bancorp, Inc.'s current business reality.

ConnectOne Bancorp, Inc. (CNOB) - Canvas Business Model: Key Partnerships

You're looking at the network ConnectOne Bancorp, Inc. relies on to keep its operations running smoothly and fund its balance sheet growth, especially after the June 1, 2025 merger with The First of Long Island Corporation.

The relationships here are about scale, technology enablement, and funding stability. For instance, the institutional support is significant; as of the third quarter of 2025, 70.64% of ConnectOne Bancorp, Inc. stock was held by institutions. This level of ownership indicates a reliance on maintaining confidence with large capital allocators.

Here's a breakdown of the key external entities ConnectOne Bancorp, Inc. partners with to execute its strategy:

• Fintech marketplace partners via BoeFly, Inc.
• Correspondent banks for treasury and liquidity management
• Federal Home Loan Bank for wholesale funding
• Institutional investors and debt holders for capital
• Strategic vendors for core banking technology systems

The scale of the operation, post-merger, gives context to the importance of these partnerships. As of June 30, 2025, total assets stood at $13.9 billion, with total loans at $11.2 billion and total deposits at $11.3 billion.

The table below maps these key partnerships against relevant financial context points, using the latest available figures from the third quarter of 2025 reporting cycle.

BoeFly, Inc., ConnectOne Bancorp, Inc.'s fintech subsidiary, connects franchise borrowers to funding solutions via a network of partner banks. For core technology, ConnectOne Bank announced a partnership with Nymbus, a cloud-native platform provider, to build bespoke banking solutions.

The capital structure is supported by a broad base of debt holders and equity investors. The third quarter of 2025 saw ConnectOne Bancorp, Inc. report net income available to common stockholders of $39.5 million, with diluted EPS at $0.78.

The bank maintains a focus on credit quality, which underpins its ability to secure funding and attract investors. Nonperforming assets were reported at just 0.28% of total loans at the end of the third quarter of 2025.

The Federal Home Loan Bank relationship is a standard component for wholesale funding in the regional banking sector, supporting the loan book which stood at $11.2 billion as of June 30, 2025.

Finance: draft 13-week cash view by Friday.

ConnectOne Bancorp, Inc. (CNOB) - Canvas Business Model: Key Activities

You're looking at the core engine of ConnectOne Bancorp, Inc. after the major integration of The First of Long Island Corporation (FLIC). The key activities here are all about executing on the combined scale and managing the resulting balance sheet effectively, especially concerning deposits and loan quality.

Commercial loan origination and portfolio management

ConnectOne Bancorp, Inc. focuses on originating loans to small to middle-market businesses, maintaining a healthy pipeline across C&I, CRE, construction, and SBA lending. The average rate on the current loan pipeline as of the second quarter of 2025 was reported at 6.77%. The company actively manages portfolio risk, which is reflected in key credit metrics.

The loan portfolio stood at $11.2 billion as of June 30, 2025. The Commercial Real Estate (CRE) concentration ratio showed a downward trend, falling to 438% at the end of the third quarter of 2025, with management expecting it to be below 400% by the end of 2025.

Core deposit gathering and client retention

A major activity post-merger was solidifying the funding base, shifting away from wholesale funding toward relationship deposits. This effort has been quite successful, showing strong organic growth and a better deposit mix. You saw a reduction in wholesale funding, specifically Federal Home Loan Bank borrowings were reduced by about $200 million.

The focus on core relationships drove significant changes in deposit composition:

• Core client deposits grew by more than $500 million since March 31, 2025, representing a 17% annualized rate.
• Noninterest-bearing demand deposits increased by more than $100 million since March 31, 2025, which is approximately a 15% annualized growth rate.
• The composition of noninterest-bearing demand deposits exceeded 21% of total deposits as of Q2 2025, up from 18% at year-end 2024.
• Total deposits reached $11.3 billion as of June 30, 2025.

This improved funding profile directly impacted the loan-to-deposit ratio, which moved from 106% as of March 31, 2025, down to 99% by the end of the second quarter of 2025. The company plans to operate near the 100% threshold going forward.

Post-merger integration and synergy realization (FLIC)

The merger with The First of Long Island Corporation (FLIC) closed on June 1, 2025. This was a transformational event, immediately establishing ConnectOne Bancorp, Inc. as a financial institution with approximately $14 billion in total assets at the time of closing. The integration activity involved absorbing FLIC's operations and realizing expected financial benefits.

The company is actively realizing synergy value, projected to flow through the earnings:

• Projected earnings accretion is approximately $9.8 million per quarter for 2025.
• This accretion is expected to decline to $9.2 million per quarter in 2026 and further to $7.9 million per quarter in 2027.
• The Net Interest Margin (NIM) widened to 3.11% in the third quarter of 2025, and management targeted a full-year 2025 NIM of about 3.25%.

Integration also involved significant one-time financial impacts. The total recognized merger charges so far amount to $40 million, with an expectation of up to an additional $10 million. The initial provision for credit losses related to the merger was $27.4 million on day one.

Regulatory compliance and risk management

Managing the combined, larger entity requires rigorous adherence to compliance standards and active risk oversight. Capital strength remains a focus, with the Bank-level Common Equity Tier 1 (CET1) Ratio remaining above 12% as of Q2 2025. The Holding Company Tangible Common Equity Ratio rose to 8.4%, with a stated goal of reaching 9%.

Credit risk management is evidenced by the following:

• Allowance for Credit Losses (ACL) ratio stood at 1.4% of loans receivable as of June 30, 2025.
• The Nonperforming Asset Ratio significantly improved to 0.28% as of Q2 2025.
• Charge-offs for the quarter were just 18 basis points.

The company proactively tripled its call center capacity to ensure responsiveness and continuity for clients.

Operating the BoeFly fintech lending platform

ConnectOne Bancorp, Inc. operates BoeFly, Inc. as a separate, independent division that functions as a digital loan origination platform. This activity is designed to build fee revenue and bolster ConnectOne Bank's SBA division, with ConnectOne participating as a partner lender in the BoeFly network.

The platform's contribution to noninterest income is a key metric here. Noninterest income for the second quarter of 2025 was $5.2 million. Looking forward, other income is expected to reach $6.7 million per quarter for the next few quarters, supported in part by anticipated gains from BoeFly and expansion in the SBA business. Historically, BoeFly's platform supported more than $5 billion of financing transactions.

ConnectOne Bancorp, Inc. (CNOB) - Canvas Business Model: Key Resources

You're looking at the core assets that power ConnectOne Bancorp, Inc.'s operations as of late 2025. These aren't just line items; they are the tangible and intangible engines driving the business model, especially following the integration of The First of Long Island Corporation.

The balance sheet strength is a primary resource. As of September 2025, ConnectOne Bancorp, Inc. reported $14.02 Billion in total assets. This scale is critical for serving the middle-market clients they target. This resource base supports the lending engine, which is the heart of the business.

The core lending and funding capacity as of mid-2025, following the merger, is substantial. You can see the key figures here:

The quality of the loan book is also a key resource. For instance, Nonperforming assets stood at $39.2 million as of June 30, 2025, representing a low 0.28% of total assets then. Furthermore, the company was projecting its Net Interest Margin to expand to 3.25% for the full year 2025, indicating effective asset deployment. The loan pipeline yield was reported at 6.77%.

Human capital, specifically the experienced commercial relationship managers, forms another pillar. ConnectOne Bank maintains a dedicated Commercial Lending Team led by seasoned executives, including Senior Vice Presidents and Vice Presidents specializing in Commercial Lending and Portfolio Management. This team focuses on fostering growth for businesses and nurturing long-term relationships. A key component of the value proposition is the provision of a Dedicated Relationship Manager for business clients, ensuring a personal point of contact for tailored advice and support.

The physical and digital footprint is strategically deployed. The New Jersey and Long Island branch network was significantly bolstered by the merger with The First of Long Island Corporation, which brought 40 branches. Post-closing in June 2025, ConnectOne now offers a powerful retail network of 60+ branches spanning New York, New Jersey, and Southeast Florida. This expansion established ConnectOne as one of the top five community banks on Long Island in terms of deposit market share.

Technology is integrated deeply into the operating philosophy, supporting a 'branch-lite' model for efficiency. Key technology resources include:

• Proprietary digital banking platforms for both business and personal clients.
• The fintech subsidiary, BoeFly, Inc., which operates an online business lending marketplace.
• BoeFly's patented technology connects franchise borrowers with funding solutions across a network of partner banks.
• Goodwill and other intangible assets related to these technology investments totaled $281.9 million as of June 30, 2025.

These resources-capital, experienced people, expanded physical reach, and proprietary technology-are what ConnectOne Bancorp, Inc. uses to deliver its value proposition.

ConnectOne Bancorp, Inc. (CNOB) - Canvas Business Model: Value Propositions

You're looking at the core reasons why ConnectOne Bancorp, Inc. attracts and keeps its clients in the competitive New York-metro banking space. The value proposition centers on delivering sophisticated commercial banking with a personal touch, backed by solid financial footing.

High-touch, client-centric commercial banking service

ConnectOne Bancorp, Inc. emphasizes a relationship-driven approach, which is crucial when dealing with complex commercial needs. This is supported by a dedicated team, having grown to about 750 employees as of the third quarter of 2025, demonstrating an investment in personnel to maintain that close service level. The successful integration of the First of Long Island Bank merger has bolstered client retention, which is a direct measure of client satisfaction with the service model.

Full suite of commercial lending and deposit products

The offering isn't limited; ConnectOne Bancorp, Inc. provides a comprehensive set of tools for small to middle-market businesses. This includes a healthy and diversified pipeline spanning Commercial & Industrial (C&I), Commercial Real Estate (CRE), construction, and SBA lending. The balance sheet reflects this scale, with loans receivable reaching $11.3 billion and total deposits at $11.4 billion as of September 30, 2025. Furthermore, the Net Interest Margin (NIM) has widened, hitting 3.11% sequentially, with the spot margin at quarter-end already exceeding 3.20%.

Specialized franchise financing through BoeFly

Through its fintech subsidiary, BoeFly, Inc., ConnectOne Bancorp, Inc. offers a specialized value proposition in franchise lending. BoeFly structures multi-unit franchise financing based on the franchisee's entire growth plan, moving beyond the traditional, slower model of funding only one location at a time. This platform has historically supported more than $5 billion of financing transactions across various categories, including franchise financing. Management has signaled a focus on this area, expecting the SBA segment, which includes BoeFly activity, to contribute significantly to noninterest income in 2026.

Premier New York-metro community bank scale

The recent merger transformed ConnectOne Bancorp, Inc. into a larger regional player focused on the New York-metro area. As of September 30, 2025, total assets stood at $14.0 billion, a significant increase from $9.9 billion at the end of 2024, largely due to the merger. This scale is supported by 61 locations and over 750 banking professionals. Here's the quick math: this translates to roughly $19 million in assets per employee, showing efficiency alongside scale.

Strong credit quality with nonperforming assets at 0.28%

A core value proposition is the demonstrated strength of the loan portfolio, supported by consistent underwriting standards. The nonperforming assets ratio was reported at a very low 0.28% of total assets as of the end of the third quarter of 2025. This low level of troubled assets is a direct result of prudent portfolio oversight and successful workout activity, such as the resolution of CRE relationships totaling $22.0 million during the quarter.

The following table summarizes the key financial metrics underpinning the scale and credit quality propositions as of the third quarter of 2025:

You can see the focus on credit discipline is a major part of the offering; it's not just about lending, it's about lending well. Also, the company is actively managing its franchise financing channel, BoeFly, to drive future noninterest income, which is a key differentiator from traditional community banks.

Finance: draft the Q4 2025 projection for loan origination volume by next Tuesday.

ConnectOne Bancorp, Inc. (CNOB) - Canvas Business Model: Customer Relationships

You're focused on building deep, sticky relationships, which is exactly what ConnectOne Bancorp, Inc. emphasizes, especially after its transformational merger with The First of Long Island Corporation on June 1, 2025.

Dedicated relationship managers for commercial clients

ConnectOne Bancorp, Inc. believes attracting quality business relationship officers is the key to client acquisition and retention. This strategy supports a 'branch-lite' model, where officers frequently go to the client rather than expecting the client to always come to a physical location. Following the merger, the combined franchise has more than 700 banking professionals across 61 locations, all geared toward servicing small to middle-market businesses. This structure is designed to foster deep connections within the commercial segment.

High-touch advisory model for complex transactions

The bank positions itself as a high-performing commercial bank, focusing on a full suite of lending products. This high-touch approach is evident in the strong pipeline across Commercial & Industrial (C&I), Construction, SBA, and Residential lending. The scale of the business reflects this focus: as of the third quarter of 2025, total loans stood at $11.2 billion, supporting a total asset base of nearly $14 billion. The relationship model helps maintain sound credit quality, with nonperforming assets reported at just 0.28% in Q3 2025.

Here's a quick look at the relationship scale and quality as of late 2025:

Digital self-service for routine banking operations

While the relationship officers drive commercial business, ConnectOne Bancorp, Inc. uses technology to service routine needs efficiently, supporting the 'reduced-branch model.' The growth in core deposits, with noninterest-bearing demand deposits composition exceeding 21% of total deposits by June 30, 2025, suggests clients are actively using digital channels for day-to-day transactions. Nationally, in 2025, about 65% of US online adults agreed they should be able to complete any financial task via a mobile app, setting the expectation ConnectOne must meet for its commercial clients.

Direct communication via executive access

Executive accessibility is a key relationship touchpoint, particularly for large commercial clients and investors. For instance, the Q3 2025 earnings call was directly hosted by Chairman and CEO Frank Sorrentino III and CFO William S. Burns. This direct line of communication, available to the public via webcast, signals a commitment to transparency that trickles down to how the bank manages its most significant client relationships. The company's focus is on deepening client relationships while delivering on strategic objectives.

• Chairman and CEO: Frank Sorrentino III.
• CFO: William S. Burns.
• Executive access demonstrated through hosting quarterly performance calls.

ConnectOne Bancorp, Inc. (CNOB) - Canvas Business Model: Channels

You're looking at how ConnectOne Bancorp, Inc. gets its services and value propositions to its customers as of late 2025, right after that big merger. It's a mix of old-school presence and modern digital tools.

Physical branch locations in New Jersey and Long Island

The physical footprint is anchored by ConnectOne Bank's presence across the New Jersey/New York metro area, significantly bolstered by the June 1, 2025, merger with The First of Long Island Corporation. The combined entity operates 61 locations as of the Q3 2025 reporting period. The core of this physical channel is concentrated in the New York metro area, specifically New Jersey and Long Island, which is now a key growth area for the bank. You can see the geographic concentration below, based on the latest location count available.

The bank aims to prove that putting people first is a better way to do business, using these offices alongside industry best practices. The merger established ConnectOne as one of the top 5 community banks on Long Island by deposit market share. That's a big deal for local channel strength.

Direct sales force and relationship officers

ConnectOne Bancorp relies on a talented, diverse team of financial experts and relationship specialists to serve small to middle-market businesses, local professionals, and individuals. This channel is crucial for maintaining the personalized service model and securing deposit accounts with somewhat larger average balances than typically seen elsewhere. The bank's mission emphasizes that the demands of a successful business extend far beyond '9-5,' suggesting an active, relationship-driven sales approach is central to their client acquisition and retention.

• Relationship specialists provide personalized service.
• Focus on firsthand knowledge of served communities.
• Access to decision-makers is a stated operational benefit.

Online and mobile banking platforms

Technology is used to service clients and maintain business relationships, supporting a reduced-branch model. The bank incorporates financial technologies like online account opening. The digital channel is clearly driving core deposit growth; as of Q2 2025, noninterest-bearing demand deposits made up over 21% of total deposits, up from 18% at year-end 2024. By Q3 2025, client deposits were reported increasing at an annualized rate of 4.0% since June 30, 2025, showing digital access helps retain and grow core funding.

BoeFly digital lending marketplace

BoeFly, Inc. is ConnectOne Bancorp's fintech subsidiary, operating as a distinct channel for specialized lending solutions. BoeFly, Inc. functions as a fintech marketplace. It connects borrowers specifically in the franchise space with funding solutions. This is done through a network of partner banks, meaning ConnectOne Bancorp is not the sole funding source, but a facilitator on the platform. This fintech arm complements the direct commercial banking services offered by ConnectOne Bank.

ConnectOne Bancorp, Inc. (CNOB) - Canvas Business Model: Customer Segments

You're looking at the core client groups that ConnectOne Bancorp, Inc. serves as of late 2025, post-merger with The First of Long Island Corporation (FLIC).

Small to middle-market businesses (SME)

• ConnectOne Bank offers a full suite of banking and lending products specifically focused on this segment.
• Loan originations remain persistent across Commercial & Industrial (C&I) lending.
• The loan portfolio size was reported at $11.2 billion as of the second quarter of 2025.
• Loan growth was projected to be at least 2.5% sequentially for the second quarter of 2025, and Q3 2025 saw loans increasing over 5.0%.

Commercial Real Estate (CRE) investors and developers

ConnectOne Bancorp, Inc. maintains a significant, though actively managed, concentration in CRE lending.

Franchise owners seeking financing (via BoeFly)

The fintech subsidiary, BoeFly, Inc., serves as a marketplace connecting borrowers in the franchise space with funding solutions.

• BoeFly has supported franchisees from more than 600 unique franchise brands.
• The platform has supported more than $5 billion of financing transactions historically.
• David Canet serves as Managing Director of SBA Lending at ConnectOne Bank, indicating direct involvement in this lending type.

Affluent retail and consumer clients

While the primary focus remains commercial, the merger with FLIC improved the overall deposit base, which includes retail/consumer funds.

• Total Deposits as of Q2 2025 were $11.3 billion.
• Noninterest-bearing demand deposits composition exceeded 21% of total deposits as of Q2 2025.
• This composition was up from 18% at year-end 2024.
• Client deposits increased at an annualized rate of 4.0% since June 30, 2025, as of Q3 2025 reporting.

ConnectOne Bancorp, Inc. (CNOB) - Canvas Business Model: Cost Structure

You're looking at the hard numbers that drive ConnectOne Bancorp, Inc.'s spending as of late 2025, right after that big merger.

Interest expense on deposits and borrowings saw a significant shift following the May 15, 2025, consummation of the merger with FLIC, which included a rate of 8.125% on a $200 million long-term subordinated debt issuance. For the three months ended June 30, 2025, total interest expense was $67,147 thousand, broken down into $60,239 thousand for deposits and $6,908 thousand for borrowings. Over the six months ended June 30, 2025, total interest expense reached $126,180 thousand.

Salaries and employee benefits reflect the increased scale post-merger. For the second quarter of 2025, this expense was reported as $25,233 thousand, up from $22,721 thousand in the first quarter of 2025. For the first six months of 2025, the cumulative expense for salaries and employee benefits totaled $47,811 thousand.

The Provision for credit losses (PCL) was a major cost driver in the second quarter. The total PCL for Q2 2025 was $35,700 thousand, which included a day-one provision of $27,400 thousand related to the FLIC merger. This compares to a much lower PCL of $2,500 thousand in Q2 2024. By the third quarter of 2025, the PCL normalized significantly to $5,500 thousand.

Merger and restructuring expenses were heavily weighted toward the second quarter, with $30,700 thousand reported in Q2 2025. For the third quarter of 2025, merger and restructuring expenses were $2,900 thousand, partially offset by a $3,500 thousand defined benefit pension plan curtailment gain.

Occupancy, equipment, and technology costs are part of the overall noninterest expenses. For Q2 2025, Occupancy and equipment was $3,478 thousand, compared to $2,899 thousand in Q1 2025. Information technology and communications expenses increased by $0.6 million in Q2 2025 compared to Q2 2024.

Here's a look at some of those key noninterest expense components for the first half of 2025:

• Salaries and employee benefits (Six Months Ended 06/30/25): $47,811 thousand
• Occupancy and equipment (Six Months Ended 06/30/25): $6,158 thousand
• Professional and consulting (Three Months Ended 06/30/25): $2,598 thousand
• FDIC insurance (Three Months Ended 06/30/25): $2,000 thousand

You can see the quarterly and year-to-date expense comparison below:

The total noninterest expenses for Q2 2025 were $73,600 thousand, a jump of $34,300 thousand from Q1 2025 ($39,300 thousand).

ConnectOne Bancorp, Inc. (CNOB) - Canvas Business Model: Revenue Streams

You're looking at how ConnectOne Bancorp, Inc. (CNOB) actually brings in the money, which is key for any deep dive into their business model, especially post-merger with FLIC. Honestly, it's what you'd expect from a solid regional bank, but the numbers tell a more precise story now.

The main engine for ConnectOne Bancorp, Inc. revenue is definitely the Net Interest Income (NII) generated from its loan portfolio. This is the spread between what they earn on assets like loans and what they pay out on liabilities like deposits. For the third quarter of 2025, the fully taxable equivalent net interest income hit $103.2 million. That's a significant jump, up 29.3% from the second quarter of 2025, largely because they had a full quarter of the FLIC assets contributing.

The efficiency of that core business is measured by the Net Interest Margin (NIM). You'll see that the NIM widened to 3.11% in the third quarter of 2025. This expansion, up from 3.06% in the prior quarter, shows the benefit of the FLIC merger, especially the improved funding mix which included a 70 basis-point decrease in the average cost of deposits. The CFO noted that without the redemption of high-cost subordinated debt and lower average cash balances, the Q3 NIM would have been over 3.50%. That's a big tailwind for future profitability, so keep an eye on that spot NIM, which was over 3.20% at quarter-end.

To give you a clearer picture of the revenue components as of late 2025, here's a quick breakdown of the most recent reported figures:

Beyond the interest income, ConnectOne Bancorp, Inc. collects Noninterest income from various fee and service charges, plus income from Bank Owned Life Insurance (BOLI). For the third quarter of 2025, this stream brought in $19.4 million. That Q3 number was boosted by a one-time $6.6 million Employee Retention Tax Credit (ERTC) and a $3.5 million pension curtailment gain, so the recurring base is lower. The CFO reiterated that the core, recurring noninterest income run-rate is about $7 million per quarter, but they expect the SBA (Small Business Administration) channel to add significantly to this in 2026.

Another important, though non-recurring, element boosting the bottom line is the Purchase Accounting Accretion resulting from the FLIC merger. Management projected this accretion to be approximately $9.8 million per quarter throughout 2025. This is a direct, non-cash benefit flowing through the income statement due to the accounting treatment of the acquisition. It's a temporary boost, but it certainly helps the reported earnings profile this year. The projection shows it declining to $9.2 million per quarter in 2026.

You can see the revenue streams are heavily weighted toward the core lending spread, but the merger has clearly added a significant, albeit temporary, boost from the purchase accounting adjustments. The key action item here is tracking the NIM trajectory; if they hit the CFO's guidance of ~3.25%+ for Q4 NIM, that core NII stream will keep strengthening. Finance: draft the Q4 NII projection based on the 3.25% NIM target by next Tuesday.