ConnectOne Bancorp, Inc. (Nasdaq: CNOB) (the “Company” or
“ConnectOne”), parent company of ConnectOne Bank (the “Bank”),
today reported net income available to common stockholders of $29.9
million for the first quarter of 2022, compared with $31.3 million
for the fourth quarter of 2021 and $33.0 million for the first
quarter of 2021. Diluted earnings per share were $0.75 for the
first quarter of 2022 compared with $0.79 for the fourth quarter of
2021 and $0.82 for the first quarter of 2021. The $1.4 million
decrease in net income available to common stockholders and $0.04
decrease in diluted earnings per share versus the fourth quarter of
2021 were primarily due to a $1.1 million increase in noninterest
expenses, a $0.7 million decrease in noninterest income, and a $0.6
million increase to provision for credit losses, partially offset
by a $1.0 million decrease in income tax expenses. The $3.1 million
decrease in net income available to common stockholders and $0.07
decrease in diluted earnings per share versus the first quarter of
2021 were due to a $7.2 million increase to provision for credit
losses, a $2.7 million increase in noninterest expenses, $1.5
million in preferred dividends, a $0.4 million decrease in
noninterest income and a $0.5 million increase in income tax
expenses, partially offset by a $9.2 million increase in net
interest income.
Pre-tax, pre-provision net revenue (“PPNR”) as a percent of
average assets was 2.17%, 2.28% and 2.06% for the quarters ending
March 31, 2022, December 31, 2021 and March 31, 2021,
respectively.
Frank Sorrentino, ConnectOne’s Chairman and Chief Executive
Officer stated, “ConnectOne had a solid start to 2022. We delivered
another quarter of strong operating performance along with
significant organic growth and best-in-class efficiency, while also
investing in our infrastructure to support future growth and
performance. Our efficiency ratio remained below 40% at 38.7%, our
PPNR as a percent of average assets remained above 2%, and our
return on tangible common equity exceeded 15%, while our net
interest margin remained at a near record level. Tangible book
value per share increased by 2.0% for the quarter to $20.51.
“Operationally, we’re using the full range of the Company’s
banking expertise to enhance client relationships. Loan demand
remained strong with annualized core loan growth increasing over
10% sequentially, matched with annualized deposit growth in excess
of 14%. We ended the quarter with a strong pipeline, reflecting
continued momentum and solid prospects among our clients across all
the markets we serve. That also reflects our expansion into new
markets which are a natural progression for us, such as Florida
where we are gaining nice traction.” Mr. Sorrentino added, “We
continue to leverage our technological foundation by investing in
infrastructure, new verticals, communication tools and digital
channels to remain well-positioned for continued growth.”
“We remain committed to strategically allocating capital to
investments that we believe can enhance value for our shareholders.
We also announced today yet another increase to our common
dividend, the third increase since the start of 2021 -- reflecting
ConnectOne’s growing capital base, our strong operating performance
and our favorable outlook.” Mr. Sorrentino added, “Looking ahead,
we remain confident in our ability to increase our market presence
and deliver continued organic growth. Our margins and efficiency
are expected to remain among the best in the industry and, even
with investments to support our growing businesses, we aim to grow
revenues faster than expenses. We’re excited about what the future
holds for ConnectOne, we are very optimistic about performance in
2022 and we are well positioned to pursue attractive opportunities
to expand our valuable franchise.”
Dividend Declarations
The Company announced that its Board of Directors declared an
increased cash dividend on its common stock and a quarterly cash
dividend on its preferred stock.
A cash dividend on common stock of $0.155 per share, reflecting
a 19.2% sequential increase and a 40.9% increase versus one year
ago, will be paid on June 1, 2022 to common stockholders of record
on May 16, 2022. A dividend of $0.328125 per share for
every depositary share, representing a 1/40th interest in the
Company’s 5.25% Fixed Rate Reset Non-Cumulative Perpetual Preferred
Stock, Series A, will also be paid on June 1, 2022 to preferred
stockholders of record on May 16, 2022.
Operating Results
Fully taxable equivalent net interest income for the first
quarter of 2022 was $70.8 million, virtually unchanged from the
fourth quarter of 2021. Average interest-earning assets increased
by $244.9 million, or 3.3%, from the fourth quarter of 2021
resulting primarily from a 2.3% increase in average loans.
Partially offsetting the benefit from increased average
interest-earnings assets was a modest contraction in the net
interest margin of 4 basis points to 3.71% from 3.75%. The net
interest margin contraction was primarily a result of a 6
basis-point decline in the yield on loans. Excluding purchase
accounting adjustments, the adjusted net interest margin was 3.64%
for the first quarter of 2022 and 3.66% for the fourth quarter of
2021. Included in interest income in the first quarter of 2022 and
fourth quarter of 2021 was the accretion of Paycheck Protection
Program (“PPP”) fee income of $2.0 million and $1.5 million,
respectively. Remaining deferred and unrecognized PPP fees were
$2.6 million as of March 31, 2022.
Fully taxable equivalent net interest income for the first
quarter of 2022 increased by $9.3 million, or 15.0%, from the first
quarter of 2021. The increase from the first quarter of 2021
resulted primarily from a 10.1% increase in average loans and a 15
basis-point widening of the net interest margin to 3.71% from
3.56%. The widening of the net interest margin resulted from a 27
basis-point reduction in the cost of interest-bearing liabilities,
partially offset by an 8 basis-point reduction in the yield on
average interest-earning assets.
Noninterest income was $3.1 million in the first quarter of
2022, $3.8 million in the fourth quarter of 2021 and $3.4 million
in the first quarter of 2021. Included in noninterest
income were net losses on equity securities of $0.6 million, $0.1
million and $0.2 million for the first quarter 2022, fourth quarter
2021 and first quarter 2021, respectively, and a $0.7 million gain
on the sale of branches in the first quarter 2021.
Excluding the aforementioned items, adjusted noninterest income was
$3.7 million, $3.9 million and $2.9 million for the first quarter
2022, fourth quarter 2021 and first quarter 2021, respectively. The
$0.3 million decrease in adjusted noninterest income for the
current quarter versus the sequential fourth quarter 2021 was
primarily due to a decrease in net gains on sale of loans
held-for-sale, partially offset by increased BoeFly income. The
$0.7 million increase in adjusted noninterest income for the
current quarter versus the first quarter 2021 was primarily due to
increases in deposit, loan and other income of $0.4 million, BoeFly
income of $0.2 million and BOLI income of $0.1 million.
Noninterest expenses totaled $29.2 million for the first quarter
of 2022, $28.1 million for the fourth quarter of 2021 and $26.5
million for the first quarter of 2021. The increase in noninterest
expenses of $1.1 million from the fourth quarter of 2021 was
primarily attributable to an increase in salaries and employee
benefits of $2.2 million and a $0.7 million in increase acquisition
expenses related to BoeFly, partially offset by decreases in
occupancy and equipment of $0.8 million, which included a $0.9
million favorable dissolution of a merger lease obligation, other
expense of $0.3 million, information technology and communications
of $0.2 million, professional and consulting of $0.2 million, and
marketing and advertising of $0.1 million. The increase
in noninterest expenses of $2.7 million from the first quarter of
2021 was primarily attributable to increases in salaries and
employee benefits of $3.1 million, the aforementioned BoeFly
expense of $0.7 million, and other expenses of $0.6 million, and
information technology and communications of $0.3 million,
partially offset by decreases in occupancy and equipment of $1.5
million, including the aforementioned favorable dissolution of
merger lease obligation, FDIC insurance of $0.3 million and
professional and consulting of $0.2 million. The increase in
salaries and employee benefits from the prior sequential quarter
and prior year quarter was attributable to new hires, seasonal
increases in payroll taxes, as well as higher incentive-based,
stock compensation expense.
Income tax expense was $11.4 million for the first quarter of
2022, $12.3 million for the fourth quarter of 2021 and $10.9
million for the first quarter of 2021. The effective tax rates for
the first quarter of 2022, fourth quarter of 2021 and first quarter
of 2021 were 26.6%, 27.1% and 24.8%, respectively.
Asset Quality
The provision for (reversal of) credit losses was $1.5 million
for the first quarter of 2022, $0.8 million for the fourth quarter
of 2021 and $(5.8) million for the first quarter of 2021. The
provision for credit losses during the first quarter of 2022 and
the fourth quarter of 2021 reflected strong organic loan growth and
stabilizing macroeconomic forecasts. The reversal of
provision for credit losses during the first quarter of 2021 was
the result of an improved macroeconomic forecast when compared to
January 1, 2021, the date of CECL implementation.
Nonperforming assets, which includes nonaccrual loans and other
real estate owned, were $59.7 million as of March 31, 2022, $61.7
million as of December 31, 2021 and $60.9 million as of March 31,
2021. Nonaccrual loans were $59.4 million as of March
31, 2022, $61.7 million as of December 31, 2021 and $60.9 million
as of March 31, 2021. Nonperforming assets as a percentage of total
assets were 0.72% as of March 31, 2022, 0.76% as of December 31,
2021 and 0.82% as of March 31, 2021. The ratio of nonaccrual loans
to loans receivable was 0.85%, 0.90% and 0.97%, as of March 31,
2022, December 31, 2021 and March 31, 2021, respectively. The
annualized net loan charge-offs ratio was 0.01% for the first
quarter of 2022, 0.01% for the fourth quarter of 2021 and 0.00% for
the first quarter of 2021. The allowance for credit losses
represented 1.15%, 1.15%, and 1.28% of loans receivable as of March
31, 2022, December 31, 2021 and March 31, 2021, respectively.
Excluding PPP loans, the allowance for credit losses represented
1.16%, 1.17%, and 1.40% of loans receivable as of March 31, 2022,
December 31, 2021 and March 31, 2021, respectively. The allowance
for credit losses as a percentage of nonaccrual loans was 134.8% as
of March 31, 2022, 127.7% as of December 31, 2021 and 132.2% as of
March 31, 2021.
Selected Balance Sheet Items
The Company’s total assets were $8.3 billion as of March 31,
2022, an increase of $204.8 million from December 31, 2021.
Loans receivable were $7.0 billion, an increase of $151.0 million
from December 31, 2021. The increase in loans receivable was
attributable to higher, organic, loan originations.
The Company’s total stockholders’ equity was $1.1 billion as of
March 31, 2022, an increase of $14.3 million from December 31,
2021. The increase in retained earnings of $24.7 million was the
primary reason for the overall increase in stockholders’ equity, in
addition to an increase in additional paid-in capital of $1.2
million, partially offset by a decrease in accumulated other
comprehensive income of $6.9 million, reflecting the after-tax
decline in the fair value of investment securities net of
unrealized hedge gains recorded in other assets, and an increase in
treasury stock of $4.8 million. As of March 31, 2022, the Company’s
tangible common equity ratio and tangible book value per share were
9.99% and $20.51, respectively. As of December 31, 2021, the
tangible common equity ratio and tangible book value per share were
10.06% and $20.12, respectively. Total goodwill and other
intangible assets were approximately $216.9 million as of March 31,
2022 and $217.4 million as of December 31, 2021.
Share Repurchase Program
During the first quarter of 2022, the Company repurchased
144,793 shares of common stock leaving approximately 2.1 million
shares remaining authorized for repurchase under the current Board
approved repurchase programs. The Company may repurchase shares
from time-to-time in the open market, in privately negotiated stock
purchases or pursuant to any trading plan that may be adopted in
accordance with Rule 10b5-1 of the Securities and Exchange
Commission and applicable federal securities laws. The share
repurchase plans do not obligate the Company to acquire any
particular amount of common stock, and they may be modified or
suspended at any time at the Company's discretion.
Use of Non-GAAP Financial Measures
In addition to the results presented in accordance with
Generally Accepted Accounting Principles ("GAAP"), ConnectOne
routinely supplements its evaluation with an analysis of certain
non-GAAP measures. ConnectOne believes these non-GAAP financial
measures, in addition to the related GAAP measures, provide
meaningful information to investors in understanding our operating
performance and trends. These non-GAAP measures have inherent
limitations and are not required to be uniformly applied and are
not audited. They should not be considered in isolation or as a
substitute for an analysis of results reported under GAAP. These
non-GAAP measures may not be comparable to similarly titled
measures reported by other companies. Reconciliations of non-GAAP
financial measures disclosed in this earnings release to the
comparable GAAP measures are provided in the accompanying
tables.
First Quarter 2022 Results Conference Call
Management will also host a conference call and audio webcast at
10:00 a.m. ET on April 28, 2022 to review the Company's financial
performance and operating results. The conference call dial-in
number is 201-689-8471, access code 13728265. Please dial in at
least five minutes before the start of the call to register. An
audio webcast of the conference call will be available to the
public, on a listen-only basis, via the "Investor Relations" link
on the Company's
website https://www.ConnectOneBank.com or
at http://ir.connectonebank.com.
A replay of the conference call will be available beginning at
approximately 1:00 p.m. ET on Thursday, April 28, 2022 and ending
on Thursday, May 5, 2022 by dialing 412-317-6671, access code
13728265. An online archive of the webcast will be available
following the completion of the conference call at
https://www.connectonebank.com or at
http://ir.connectonebank.com.
About ConnectOne Bancorp, Inc.
ConnectOne Bancorp, Inc., is a modern financial services company
that operates, through its subsidiary, ConnectOne Bank, and its
fintech subsidiary, BoeFly. ConnectOne Bank is a high-performing
commercial bank offering a full suite of banking & lending
products and services that focus on small to middle-market
businesses. BoeFly is a fintech marketplace that connects borrowers
in the franchise space with funding solutions through a network of
partner banks. ConnectOne Bancorp, Inc. is traded on the Nasdaq
Global Market under the trading symbol "CNOB," and information
about ConnectOne may be found at
https://www.connectonebank.com.
Forward-Looking Statements
This news release contains certain forward-looking
statements which are based on certain assumptions and describe
future plans, strategies and expectations of the Company. These
forward-looking statements are generally identified by use of the
words "believe," "expect," "intend," "anticipate," "estimate,"
"project," or similar expressions. The Company's ability to predict
results or the actual effect of future plans or strategies is
inherently uncertain. Factors which could have a material adverse
effect on the operations of the Company and its subsidiaries
include, but are not limited to, those factors set forth in Item 1A
– Risk Factors of the Company’s Annual Report on Form 10-K, as
filed with the Securities Exchange Commission, as supplemented by
the Company’s subsequent filings with the Securities and Exchange
Commission, and changes in interest rates, general economic
conditions, legislative/regulatory changes, monetary and fiscal
policies of the U.S. Government, including policies of the U.S.
Treasury and the Federal Reserve Board, the quality or composition
of the loan or investment portfolios, demand for loan products,
deposit flows, competition, demand for financial services in the
Company's market area, changes in accounting principles and
guidelines and the impact of the COVID-19 pandemic on the Company,
its employees and operations, and its customers. These risks and
uncertainties should be considered in evaluating forward-looking
statements and undue reliance should not be placed on such
statements. The Company does not undertake, and specifically
disclaims any obligation, to publicly release the result of any
revisions which may be made to any forward-looking statements to
reflect events or circumstances after the date of such statements
or to reflect the occurrence of anticipated or unanticipated
events.
Investor Contact:
William S. BurnsSenior Executive VP
& CFO201.816.4474:
bburns@cnob.com
Media Contact:Sutton Resler,
MWW571.236.4966: sresler@mww.com
CONNECTONE
BANCORP,
INC. AND
SUBSIDIARIES |
|
|
|
|
|
|
CONSOLIDATED CONDENSED STATEMENTS OF FINANCIAL
CONDITION |
|
|
|
|
|
(in
thousands) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
March
31, |
|
December
31, |
|
March
31, |
|
|
|
2022 |
|
|
|
2021 |
|
|
|
2021 |
|
|
|
(unaudited) |
|
|
|
(unaudited) |
|
ASSETS |
|
|
|
|
|
|
Cash and due
from banks |
$ |
61,849 |
|
|
$ |
54,352 |
|
|
$ |
48,250 |
|
|
Interest-bearing deposits with banks |
|
249,695 |
|
|
|
211,184 |
|
|
|
211,842 |
|
|
Cash and cash equivalents |
|
311,544 |
|
|
|
265,536 |
|
|
|
260,092 |
|
|
|
|
|
|
|
|
|
Investment
securities |
|
512,030 |
|
|
|
534,507 |
|
|
|
442,023 |
|
|
Equity
securities |
|
13,198 |
|
|
|
13,794 |
|
|
|
13,200 |
|
|
|
|
|
|
|
|
|
Loans
held-for-sale |
|
2,742 |
|
|
|
250 |
|
|
|
6,900 |
|
|
|
|
|
|
|
|
|
Loans
receivable |
|
6,979,595 |
|
|
|
6,828,622 |
|
|
|
6,277,191 |
|
|
Less:
Allowance for credit losses - loans |
|
80,070 |
|
|
|
78,773 |
|
|
|
80,568 |
|
|
Net loans receivable |
|
6,899,525 |
|
|
|
6,749,849 |
|
|
|
6,196,623 |
|
|
|
|
|
|
|
|
|
Investment
in restricted stock, at cost |
|
25,254 |
|
|
|
27,826 |
|
|
|
22,483 |
|
|
Bank
premises and equipment, net |
|
28,779 |
|
|
|
29,032 |
|
|
|
29,296 |
|
|
Accrued
interest receivable |
|
34,081 |
|
|
|
34,152 |
|
|
|
35,249 |
|
|
Bank owned
life insurance |
|
196,937 |
|
|
|
195,731 |
|
|
|
167,024 |
|
|
Right of use
operating lease assets |
|
10,400 |
|
|
|
11,017 |
|
|
|
13,469 |
|
|
Other real
estate owned |
|
316 |
|
|
|
- |
|
|
|
- |
|
|
Goodwill |
|
208,372 |
|
|
|
208,372 |
|
|
|
208,372 |
|
|
Core deposit
intangibles |
|
8,564 |
|
|
|
8,997 |
|
|
|
10,470 |
|
|
Other
assets |
|
82,559 |
|
|
|
50,417 |
|
|
|
44,438 |
|
|
Total assets |
$ |
8,334,301 |
|
|
$ |
8,129,480 |
|
|
$ |
7,449,639 |
|
|
|
|
|
|
|
|
|
LIABILITIES |
|
|
|
|
|
|
Deposits: |
|
|
|
|
|
|
Noninterest-bearing |
$ |
1,631,292 |
|
|
$ |
1,617,049 |
|
|
$ |
1,384,961 |
|
|
Interest-bearing |
|
4,929,113 |
|
|
|
4,715,904 |
|
|
|
4,566,373 |
|
|
Total
deposits |
|
6,560,405 |
|
|
|
6,332,953 |
|
|
|
5,951,334 |
|
|
Borrowings |
|
412,170 |
|
|
|
468,193 |
|
|
|
359,710 |
|
|
Subordinated
debentures, net |
|
153,027 |
|
|
|
152,951 |
|
|
|
152,724 |
|
|
Operating
lease liabilities |
|
11,773 |
|
|
|
12,417 |
|
|
|
15,260 |
|
|
Other
liabilities |
|
58,407 |
|
|
|
38,754 |
|
|
|
34,974 |
|
|
Total
liabilities |
|
7,195,782 |
|
|
|
7,005,268 |
|
|
|
6,514,002 |
|
|
|
|
|
|
|
|
|
COMMITMENTS AND CONTINGENCIES |
|
|
|
|
|
|
|
|
|
|
|
|
|
STOCKHOLDERS' EQUITY |
|
|
|
|
|
|
Preferred
stock |
|
110,927 |
|
|
|
110,927 |
|
|
|
- |
|
|
Common
stock |
|
586,946 |
|
|
|
586,946 |
|
|
|
586,946 |
|
|
Additional
paid-in capital |
|
28,484 |
|
|
|
27,246 |
|
|
|
23,621 |
|
|
Retained
earnings |
|
464,889 |
|
|
|
440,169 |
|
|
|
358,441 |
|
|
Treasury
stock |
|
(44,458 |
) |
|
|
(39,672 |
) |
|
|
(32,682 |
) |
|
Accumulated
other comprehensive loss |
|
(8,269 |
) |
|
|
(1,404 |
) |
|
|
(689 |
) |
|
Total stockholders' equity |
|
1,138,519 |
|
|
|
1,124,212 |
|
|
|
935,637 |
|
|
Total liabilities and stockholders'
equity |
$ |
8,334,301 |
|
|
$ |
8,129,480 |
|
|
$ |
7,449,639 |
|
|
|
|
|
|
|
|
|
CONNECTONE BANCORP, INC. AND SUBSIDIARIES |
|
|
|
|
|
|
CONSOLIDATED STATEMENTS OF INCOME |
|
|
|
|
|
|
(dollars in thousands, except for per share
data) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended |
|
|
03/31/22 |
|
12/31/21 |
|
03/31/21 |
|
Interest income |
|
|
|
|
|
|
Interest and fees on loans |
$ |
76,025 |
|
|
$ |
76,891 |
|
|
$ |
70,462 |
|
|
Interest and dividends on investment
securities: |
|
|
|
|
|
|
Taxable |
|
1,873 |
|
|
|
1,265 |
|
|
|
1,088 |
|
|
Tax-exempt |
|
709 |
|
|
|
518 |
|
|
|
766 |
|
|
Dividends |
|
214 |
|
|
|
207 |
|
|
|
256 |
|
|
Interest on federal funds sold and
other short-term investments |
|
120 |
|
|
|
159 |
|
|
|
49 |
|
|
Total
interest income |
|
78,941 |
|
|
|
79,040 |
|
|
|
72,621 |
|
|
Interest expense |
|
|
|
|
|
|
Deposits |
|
5,010 |
|
|
|
5,281 |
|
|
|
7,585 |
|
|
Borrowings |
|
3,573 |
|
|
|
3,298 |
|
|
|
3,873 |
|
|
Total
interest expense |
|
8,583 |
|
|
|
8,579 |
|
|
|
11,458 |
|
|
|
|
|
|
|
|
|
Net
interest income |
|
70,358 |
|
|
|
70,461 |
|
|
|
61,163 |
|
|
Provision for (reversal of) credit
losses |
|
1,450 |
|
|
|
815 |
|
|
|
(5,766 |
) |
|
Net
interest income after provision for credit losses |
|
68,908 |
|
|
|
69,646 |
|
|
|
66,929 |
|
|
|
|
|
|
|
|
|
Noninterest income |
|
|
|
|
|
|
Deposit, loan and other income |
|
1,743 |
|
|
|
1,525 |
|
|
|
1,168 |
|
|
Income on bank owned life
insurance |
|
1,206 |
|
|
|
1,244 |
|
|
|
1,064 |
|
|
Net gains on sale of loans
held-for-sale |
|
701 |
|
|
|
1,139 |
|
|
|
707 |
|
|
Gain on sale of branches |
|
- |
|
|
|
- |
|
|
|
674 |
|
|
Net losses on equity securities |
|
(596 |
) |
|
|
(131 |
) |
|
|
(187 |
) |
|
Total
noninterest income |
|
3,054 |
|
|
|
3,777 |
|
|
|
3,426 |
|
|
|
|
|
|
|
|
|
Noninterest expenses |
|
|
|
|
|
|
Salaries and employee benefits |
|
18,640 |
|
|
|
16,483 |
|
|
|
15,565 |
|
|
Occupancy and equipment |
|
1,929 |
|
|
|
2,762 |
|
|
|
3,404 |
|
|
FDIC insurance |
|
606 |
|
|
|
625 |
|
|
|
935 |
|
|
Professional and consulting |
|
1,792 |
|
|
|
1,996 |
|
|
|
1,956 |
|
|
Marketing and advertising |
|
351 |
|
|
|
454 |
|
|
|
241 |
|
|
Information technology and
communications |
|
2,866 |
|
|
|
3,058 |
|
|
|
2,525 |
|
|
Amortization of core deposit
intangible |
|
433 |
|
|
|
483 |
|
|
|
507 |
|
|
Increase in value of acquisition
price |
|
683 |
|
|
|
- |
|
|
|
- |
|
|
Other expenses |
|
1,930 |
|
|
|
2,223 |
|
|
|
1,352 |
|
|
Total
noninterest expenses |
|
29,230 |
|
|
|
28,084 |
|
|
|
26,485 |
|
|
|
|
|
|
|
|
|
Income before income tax expense |
|
42,732 |
|
|
|
45,339 |
|
|
|
43,870 |
|
|
Income tax expense |
|
11,351 |
|
|
|
12,301 |
|
|
|
10,871 |
|
|
Net
income |
|
31,381 |
|
|
|
33,038 |
|
|
|
32,999 |
|
|
Preferred dividends |
|
1,509 |
|
|
|
1,717 |
|
|
|
- |
|
|
Net
income available to common stockholders |
$ |
29,872 |
|
|
$ |
31,321 |
|
|
$ |
32,999 |
|
|
|
|
|
|
|
|
|
Earnings per common share: |
|
|
|
|
|
|
Basic |
$ |
0.76 |
|
|
$ |
0.79 |
|
|
$ |
0.83 |
|
|
Diluted |
|
0.75 |
|
|
|
0.79 |
|
|
|
0.82 |
|
|
|
|
|
|
|
|
|
ConnectOne's
management believes that the supplemental financial information,
including non-GAAP measures provided below, is useful to investors.
The non-GAAP measures should not be viewed as a substitute for
financial results determined in accordance with GAAP, and are not
necessarily comparable to non-GAAP financial measures presented by
other companies. |
|
|
|
|
|
|
|
|
|
|
CONNECTONE
BANCORP,
INC. |
|
|
|
|
|
|
|
|
|
SUPPLEMENTAL GAAP AND NON-GAAP FINANCIAL
MEASURES |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
As of |
|
Mar.
31, |
|
Dec.
31, |
|
Sep.
30, |
|
Jun.
30, |
|
Mar.
31, |
|
|
2022 |
|
|
|
2021 |
|
|
|
2021 |
|
|
|
2021 |
|
|
|
2021 |
|
Selected Financial Data |
(dollars in
thousands) |
Total
assets |
$ |
8,334,301 |
|
|
$ |
8,129,480 |
|
|
$ |
7,949,514 |
|
|
$ |
7,710,082 |
|
|
$ |
7,449,639 |
|
Loans
receivable: |
|
|
|
|
|
|
|
|
|
Commercial |
$ |
1,161,867 |
|
|
$ |
1,163,442 |
|
|
$ |
1,116,535 |
|
|
$ |
1,046,965 |
|
|
$ |
1,071,418 |
|
Paycheck Protection Program ("PPP") loans |
|
54,301 |
|
|
|
93,057 |
|
|
|
177,829 |
|
|
|
326,788 |
|
|
|
522,340 |
|
Commercial real estate |
|
2,516,065 |
|
|
|
2,446,807 |
|
|
|
2,354,209 |
|
|
|
2,252,484 |
|
|
|
2,127,807 |
|
Multifamily |
|
2,465,337 |
|
|
|
2,337,712 |
|
|
|
2,113,541 |
|
|
|
1,914,978 |
|
|
|
1,698,331 |
|
Commercial construction |
|
539,058 |
|
|
|
540,178 |
|
|
|
552,896 |
|
|
|
587,121 |
|
|
|
565,872 |
|
Residential |
|
250,205 |
|
|
|
255,269 |
|
|
|
270,793 |
|
|
|
286,907 |
|
|
|
306,376 |
|
Consumer |
|
1,140 |
|
|
|
1,886 |
|
|
|
2,093 |
|
|
|
6,355 |
|
|
|
3,364 |
|
Gross loans |
|
6,987,973 |
|
|
|
6,838,351 |
|
|
|
6,587,896 |
|
|
|
6,421,598 |
|
|
|
6,295,508 |
|
Unearned net
origination fees |
|
(8,378 |
) |
|
|
(9,729 |
) |
|
|
(11,457 |
) |
|
|
(13,694 |
) |
|
|
(18,317 |
) |
Loans receivable |
|
6,979,595 |
|
|
|
6,828,622 |
|
|
|
6,576,439 |
|
|
|
6,407,904 |
|
|
|
6,277,191 |
|
Loans held-for-sale |
|
2,742 |
|
|
|
250 |
|
|
|
5,596 |
|
|
|
6,159 |
|
|
|
6,900 |
|
Total
loans |
$ |
6,982,337 |
|
|
$ |
6,828,872 |
|
|
$ |
6,582,035 |
|
|
$ |
6,414,063 |
|
|
$ |
6,284,091 |
|
|
|
|
|
|
|
|
|
|
|
Investment
and equity securities |
$ |
525,228 |
|
|
$ |
548,301 |
|
|
$ |
476,584 |
|
|
$ |
472,156 |
|
|
$ |
455,223 |
|
Goodwill and
other intangible assets |
|
216,936 |
|
|
|
217,369 |
|
|
|
217,852 |
|
|
|
218,335 |
|
|
|
218,842 |
|
Deposits: |
|
|
|
|
|
|
|
|
|
Noninterest-bearing demand |
$ |
1,631,292 |
|
|
$ |
1,617,049 |
|
|
$ |
1,500,754 |
|
|
$ |
1,485,952 |
|
|
$ |
1,384,961 |
|
Time deposits |
|
1,065,814 |
|
|
|
1,150,109 |
|
|
|
1,221,911 |
|
|
|
1,301,807 |
|
|
|
1,356,599 |
|
Other interest-bearing deposits |
|
3,863,299 |
|
|
|
3,565,795 |
|
|
|
3,675,673 |
|
|
|
3,404,754 |
|
|
|
3,209,774 |
|
Total
deposits |
$ |
6,560,405 |
|
|
$ |
6,332,953 |
|
|
$ |
6,398,338 |
|
|
$ |
6,192,513 |
|
|
$ |
5,951,334 |
|
|
|
|
|
|
|
|
|
|
|
Borrowings |
$ |
412,170 |
|
|
$ |
468,193 |
|
|
$ |
253,225 |
|
|
$ |
353,462 |
|
|
$ |
359,710 |
|
Subordinated
debentures (net of debt issuance costs) |
|
153,027 |
|
|
|
152,951 |
|
|
|
152,875 |
|
|
|
152,800 |
|
|
|
152,724 |
|
Total
stockholders' equity |
|
1,138,519 |
|
|
|
1,124,212 |
|
|
|
1,098,433 |
|
|
|
964,960 |
|
|
|
935,637 |
|
|
|
|
|
|
|
|
|
|
|
Quarterly Average Balances |
|
|
|
|
|
|
|
|
|
Total
assets |
$ |
8,263,382 |
|
|
$ |
8,027,169 |
|
|
$ |
7,837,997 |
|
|
$ |
7,566,676 |
|
|
$ |
7,500,034 |
|
Loans
receivable: |
|
|
|
|
|
|
|
|
|
Commercial (including PPP loans) |
$ |
1,231,703 |
|
|
$ |
1,278,048 |
|
|
$ |
1,296,066 |
|
|
$ |
1,485,918 |
|
|
$ |
1,531,790 |
|
Commercial real estate (including multifamily) |
|
4,850,349 |
|
|
|
4,625,371 |
|
|
|
4,312,092 |
|
|
|
3,925,497 |
|
|
|
3,805,856 |
|
Commercial construction |
|
541,642 |
|
|
|
547,038 |
|
|
|
572,920 |
|
|
|
553,396 |
|
|
|
595,466 |
|
Residential |
|
253,589 |
|
|
|
268,112 |
|
|
|
279,063 |
|
|
|
293,633 |
|
|
|
316,233 |
|
Consumer |
|
3,682 |
|
|
|
4,938 |
|
|
|
2,649 |
|
|
|
3,148 |
|
|
|
2,540 |
|
Gross loans |
|
6,880,965 |
|
|
|
6,723,507 |
|
|
|
6,462,790 |
|
|
|
6,261,592 |
|
|
|
6,251,885 |
|
Unearned net
origination fees |
|
(9,870 |
) |
|
|
(10,873 |
) |
|
|
(13,064 |
) |
|
|
(13,076 |
) |
|
|
(13,163 |
) |
Loans receivable |
|
6,871,095 |
|
|
|
6,712,634 |
|
|
|
6,449,726 |
|
|
|
6,248,516 |
|
|
|
6,238,722 |
|
Loans held-for-sale |
|
382 |
|
|
|
5,051 |
|
|
|
6,226 |
|
|
|
3,696 |
|
|
|
4,237 |
|
Total
loans |
$ |
6,871,477 |
|
|
$ |
6,717,685 |
|
|
$ |
6,455,952 |
|
|
$ |
6,252,212 |
|
|
$ |
6,242,959 |
|
|
|
|
|
|
|
|
|
|
|
Investment
and equity securities |
$ |
536,090 |
|
|
$ |
481,276 |
|
|
$ |
465,103 |
|
|
$ |
450,543 |
|
|
$ |
481,082 |
|
Goodwill and
other intangible assets |
|
217,219 |
|
|
|
217,685 |
|
|
|
218,170 |
|
|
|
218,662 |
|
|
|
219,171 |
|
Deposits: |
|
|
|
|
|
|
|
|
|
Noninterest-bearing demand |
$ |
1,547,055 |
|
|
$ |
1,537,316 |
|
|
$ |
1,495,456 |
|
|
$ |
1,432,707 |
|
|
$ |
1,348,585 |
|
Time deposits |
|
1,124,614 |
|
|
|
1,204,374 |
|
|
|
1,252,818 |
|
|
|
1,324,510 |
|
|
|
1,422,295 |
|
Other interest-bearing deposits |
|
3,851,558 |
|
|
|
3,672,311 |
|
|
|
3,582,261 |
|
|
|
3,320,400 |
|
|
|
3,225,751 |
|
Total
deposits |
$ |
6,523,227 |
|
|
$ |
6,414,001 |
|
|
$ |
6,330,535 |
|
|
$ |
6,077,617 |
|
|
$ |
5,996,631 |
|
|
|
|
|
|
|
|
|
|
|
Borrowings |
$ |
404,907 |
|
|
$ |
292,847 |
|
|
$ |
276,183 |
|
|
$ |
331,633 |
|
|
$ |
375,511 |
|
Subordinated
debentures (net of debt issuance costs) |
|
152,977 |
|
|
|
152,902 |
|
|
|
152,825 |
|
|
|
152,750 |
|
|
|
154,341 |
|
Total
stockholders' equity |
|
1,131,968 |
|
|
|
1,113,524 |
|
|
|
1,032,191 |
|
|
|
952,019 |
|
|
|
928,041 |
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended |
|
Mar. 31, |
|
Dec. 31, |
|
Sep. 30, |
|
Jun. 30, |
|
Mar. 31, |
|
|
2022 |
|
|
|
2021 |
|
|
|
2021 |
|
|
|
2021 |
|
|
|
2021 |
|
|
(dollars in
thousands, except for per share data) |
Net
interest income |
$ |
70,358 |
|
|
$ |
70,461 |
|
|
$ |
68,245 |
|
|
$ |
63,009 |
|
|
$ |
61,163 |
|
Provision for (reversal of) credit losses |
|
1,450 |
|
|
|
815 |
|
|
|
1,100 |
|
|
|
(1,649 |
) |
|
|
(5,766 |
) |
Net interest
income after provision for credit losses |
|
68,908 |
|
|
|
69,646 |
|
|
|
67,145 |
|
|
|
64,658 |
|
|
|
66,929 |
|
Noninterest income |
|
|
|
|
|
|
|
|
|
Deposit,
loan and other income |
|
1,743 |
|
|
|
1,525 |
|
|
|
1,702 |
|
|
|
2,222 |
|
|
|
1,168 |
|
Income on
bank owned life insurance |
|
1,206 |
|
|
|
1,244 |
|
|
|
1,278 |
|
|
|
1,185 |
|
|
|
1,064 |
|
Net gains on
sale of loans held-for-sale |
|
701 |
|
|
|
1,139 |
|
|
|
1,114 |
|
|
|
847 |
|
|
|
707 |
|
Gain on sale
of branches |
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
674 |
|
Net (losses)
gains on equity securities |
|
(596 |
) |
|
|
(131 |
) |
|
|
(78 |
) |
|
|
23 |
|
|
|
(187 |
) |
Total noninterest
income |
|
3,054 |
|
|
|
3,777 |
|
|
|
4,016 |
|
|
|
4,472 |
|
|
|
3,426 |
|
Noninterest expenses |
|
|
|
|
|
|
|
|
|
Salaries and employee benefits |
|
18,640 |
|
|
|
16,483 |
|
|
|
16,740 |
|
|
|
15,284 |
|
|
|
15,565 |
|
Occupancy and equipment |
|
1,929 |
|
|
|
2,762 |
|
|
|
2,656 |
|
|
|
2,916 |
|
|
|
3,404 |
|
FDIC
insurance |
|
606 |
|
|
|
625 |
|
|
|
525 |
|
|
|
580 |
|
|
|
935 |
|
Professional and consulting |
|
1,792 |
|
|
|
1,996 |
|
|
|
2,217 |
|
|
|
2,117 |
|
|
|
1,956 |
|
Marketing and advertising |
|
351 |
|
|
|
454 |
|
|
|
345 |
|
|
|
278 |
|
|
|
241 |
|
Information
technology and communications |
|
2,866 |
|
|
|
3,058 |
|
|
|
3,048 |
|
|
|
2,636 |
|
|
|
2,525 |
|
Amortization of core deposit intangible |
|
433 |
|
|
|
483 |
|
|
|
483 |
|
|
|
508 |
|
|
|
507 |
|
Increase in value of acquisition price |
|
683 |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
Other
expenses |
|
1,930 |
|
|
|
2,223 |
|
|
|
2,169 |
|
|
|
1,940 |
|
|
|
1,352 |
|
Total noninterest
expenses |
|
29,230 |
|
|
|
28,084 |
|
|
|
28,183 |
|
|
|
26,259 |
|
|
|
26,485 |
|
|
|
|
|
|
|
|
|
|
|
Income before income tax expense |
|
42,732 |
|
|
|
45,339 |
|
|
|
42,978 |
|
|
|
42,871 |
|
|
|
43,870 |
|
Income tax expense |
|
11,351 |
|
|
|
12,301 |
|
|
|
10,881 |
|
|
|
10,652 |
|
|
|
10,871 |
|
Net
income |
|
31,381 |
|
|
$ |
33,038 |
|
|
$ |
32,097 |
|
|
$ |
32,219 |
|
|
$ |
32,999 |
|
Preferred dividends |
|
1,509 |
|
|
|
1,717 |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
Net
income available to common stockholders |
$ |
29,872 |
|
|
$ |
31,321 |
|
|
$ |
32,097 |
|
|
$ |
32,219 |
|
|
$ |
32,999 |
|
|
|
|
|
|
|
|
|
|
|
Weighted
average diluted common shares outstanding |
|
39,727,606 |
|
|
|
39,792,937 |
|
|
|
39,869,468 |
|
|
|
39,872,829 |
|
|
|
39,788,881 |
|
Diluted
EPS |
$ |
0.75 |
|
|
$ |
0.79 |
|
|
$ |
0.80 |
|
|
$ |
0.81 |
|
|
$ |
0.82 |
|
|
|
|
|
|
|
|
|
|
|
Reconciliation of GAAP Earnings to Pre-tax and
Pre-provision Net Revenue |
|
|
|
|
|
|
|
|
Net
income |
$ |
31,381 |
|
|
$ |
33,038 |
|
|
$ |
32,097 |
|
|
$ |
32,219 |
|
|
$ |
32,999 |
|
Income tax
expense |
|
11,351 |
|
|
|
12,301 |
|
|
|
10,881 |
|
|
|
10,652 |
|
|
|
10,871 |
|
Provision
for (reversal of) credit losses |
|
1,450 |
|
|
|
815 |
|
|
|
1,100 |
|
|
|
(1,649 |
) |
|
|
(5,766 |
) |
Pre-tax and pre-provision net revenue |
$ |
44,182 |
|
|
$ |
46,154 |
|
|
$ |
44,078 |
|
|
$ |
41,222 |
|
|
$ |
38,104 |
|
|
|
|
|
|
|
|
|
|
|
Return on Assets Measures |
|
|
|
|
|
|
|
|
|
Average
assets |
$ |
8,263,382 |
|
|
$ |
8,027,169 |
|
|
$ |
7,837,997 |
|
|
$ |
7,566,676 |
|
|
$ |
7,500,034 |
|
Return on
avg. assets |
|
1.54 |
|
% |
|
1.63 |
|
% |
|
1.62 |
|
% |
|
1.71 |
|
% |
|
1.78 |
% |
Return on
avg. assets (pre-tax and pre-provision) |
|
2.17 |
|
|
|
2.28 |
|
|
|
2.23 |
|
|
|
2.19 |
|
|
|
2.06 |
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended |
|
Mar.
31, |
|
Dec.
31, |
|
Sep.
30, |
|
Jun.
30, |
|
Mar.
31, |
|
|
2022 |
|
|
|
2021 |
|
|
|
2021 |
|
|
|
2021 |
|
|
|
2021 |
|
Return on Equity Measures |
(dollars in
thousands) |
Average
stockholders' equity |
$ |
1,131,968 |
|
|
$ |
1,113,524 |
|
|
$ |
1,032,195 |
|
|
$ |
952,019 |
|
|
$ |
928,041 |
|
Less:
average preferred stock |
|
(110,927 |
) |
|
|
(110,927 |
) |
|
|
(51,847 |
) |
|
|
- |
|
|
|
- |
|
Average
common equity |
$ |
1,021,041 |
|
|
$ |
1,002,597 |
|
|
$ |
980,348 |
|
|
$ |
952,019 |
|
|
$ |
928,041 |
|
Less:
average intangible assets |
|
(217,219 |
) |
|
|
(217,685 |
) |
|
|
(218,170 |
) |
|
|
(218,662 |
) |
|
|
(219,171 |
) |
Average
tangible common equity |
$ |
803,822 |
|
|
$ |
784,912 |
|
|
$ |
762,178 |
|
|
$ |
733,357 |
|
|
$ |
708,870 |
|
|
|
|
|
|
|
|
|
|
|
Return on
avg. common equity (GAAP) |
|
11.87 |
|
% |
|
12.39 |
|
% |
|
12.99 |
|
% |
|
13.57 |
|
% |
|
14.42 |
% |
Return on
avg. tangible common equity ("TCE") (non-GAAP) (1) |
|
15.22 |
|
|
|
16.00 |
|
|
|
16.88 |
|
|
|
17.82 |
|
|
|
19.08 |
|
Return on
avg. tangible common equity (pre-tax, pre-provision) |
|
22.44 |
|
|
|
23.50 |
|
|
|
23.12 |
|
|
|
22.74 |
|
|
|
22.00 |
|
|
|
|
|
|
|
|
|
|
|
Efficiency Measures |
|
|
|
|
|
|
|
|
|
Total
noninterest expenses |
$ |
29,230 |
|
|
$ |
28,084 |
|
|
$ |
28,183 |
|
|
$ |
26,259 |
|
|
$ |
26,485 |
|
Amortization
of core deposit intangibles |
|
(433 |
) |
|
|
(483 |
) |
|
|
(483 |
) |
|
|
(508 |
) |
|
|
(507 |
) |
Operating
noninterest expense |
$ |
28,797 |
|
|
$ |
27,601 |
|
|
$ |
27,700 |
|
|
$ |
25,751 |
|
|
$ |
25,978 |
|
|
|
|
|
|
|
|
|
|
|
Net interest
income (tax equivalent basis) |
$ |
70,842 |
|
|
$ |
70,890 |
|
|
$ |
68,761 |
|
|
$ |
63,418 |
|
|
$ |
61,581 |
|
Noninterest
income |
|
3,054 |
|
|
|
3,777 |
|
|
|
4,016 |
|
|
|
4,472 |
|
|
|
3,426 |
|
Net losses
(gains) on equity securities |
|
596 |
|
|
|
131 |
|
|
|
78 |
|
|
|
(23 |
) |
|
|
187 |
|
Net gains on
sale/redemption of investment securities |
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
(195 |
) |
|
|
- |
|
Operating
revenue |
$ |
74,492 |
|
|
$ |
74,798 |
|
|
$ |
72,855 |
|
|
$ |
67,672 |
|
|
$ |
64,520 |
|
|
|
|
|
|
|
|
|
|
|
Operating
efficiency ratio (non-GAAP) (2) |
|
38.7 |
|
% |
|
36.9 |
|
% |
|
38.0 |
|
% |
|
38.1 |
|
% |
|
40.3 |
% |
|
|
|
|
|
|
|
|
|
|
Net
Interest Margin |
|
|
|
|
|
|
|
|
|
Average
interest-earning assets |
$ |
7,753,881 |
|
|
$ |
7,508,973 |
|
|
$ |
7,321,771 |
|
|
$ |
7,059,965 |
|
|
$ |
7,008,500 |
|
|
|
|
|
|
|
|
|
|
|
Net interest
income (tax equivalent basis) |
$ |
70,842 |
|
|
$ |
70,890 |
|
|
$ |
68,761 |
|
|
$ |
63,418 |
|
|
$ |
61,581 |
|
Impact of
purchase accounting fair value marks |
|
(1,179 |
) |
|
|
(1,674 |
) |
|
|
(1,849 |
) |
|
|
(2,012 |
) |
|
|
(2,074 |
) |
Adjusted net
interest income (tax equivalent basis) |
$ |
69,663 |
|
|
$ |
69,216 |
|
|
$ |
66,912 |
|
|
$ |
61,406 |
|
|
$ |
59,507 |
|
|
|
|
|
|
|
|
|
|
|
Net interest
margin (GAAP) |
|
3.71 |
|
% |
|
3.75 |
|
% |
|
3.73 |
|
% |
|
3.60 |
|
% |
|
3.56 |
% |
Adjusted net
interest margin (non-GAAP) (3) |
|
3.64 |
|
|
|
3.66 |
|
|
|
3.63 |
|
|
|
3.49 |
|
|
|
3.44 |
|
|
|
|
|
|
|
|
|
|
|
(1) Earnings available
to common stockholders excluding amortization of intangible assets
divided by average tangible common equity. |
|
|
(2)
Operating noninterest expense divided by operating revenue. |
|
|
|
|
|
|
|
|
|
(3) Adjusted net interest margin excludes impact of purchase
accounting fair value marks. |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
As of |
|
Mar.
31, |
|
Dec.
31, |
|
Sep.
30, |
|
Jun.
30, |
|
Mar.
31, |
|
|
2022 |
|
|
|
2021 |
|
|
|
2021 |
|
|
|
2021 |
|
|
|
2021 |
|
Capital Ratios and Book Value per Share |
(dollars in
thousands, except for per share data) |
Stockholders
equity |
$ |
1,138,519 |
|
|
$ |
1,124,212 |
|
|
$ |
1,098,433 |
|
|
$ |
964,960 |
|
|
$ |
935,637 |
|
Less:
preferred stock |
|
(110,927 |
) |
|
|
(110,927 |
) |
|
|
(110,927 |
) |
|
|
- |
|
|
|
- |
|
Common
equity |
$ |
1,027,592 |
|
|
$ |
1,013,285 |
|
|
$ |
987,506 |
|
|
$ |
964,960 |
|
|
$ |
935,637 |
|
Less:
intangible assets |
|
(216,936 |
) |
|
|
(217,369 |
) |
|
|
(217,852 |
) |
|
|
(218,335 |
) |
|
|
(218,842 |
) |
Tangible
common equity |
$ |
810,656 |
|
|
$ |
795,916 |
|
|
$ |
769,654 |
|
|
$ |
746,625 |
|
|
$ |
716,795 |
|
|
|
|
|
|
|
|
|
|
|
Total
assets |
$ |
8,334,301 |
|
|
$ |
8,129,480 |
|
|
$ |
7,949,514 |
|
|
$ |
7,710,082 |
|
|
$ |
7,449,639 |
|
Less:
intangible assets |
|
(216,936 |
) |
|
|
(217,369 |
) |
|
|
(217,852 |
) |
|
|
(218,335 |
) |
|
|
(218,842 |
) |
Tangible
assets |
$ |
8,117,365 |
|
|
$ |
7,912,111 |
|
|
$ |
7,731,662 |
|
|
$ |
7,491,747 |
|
|
$ |
7,230,797 |
|
|
|
|
|
|
|
|
|
|
|
Common
shares outstanding |
|
39,518,411 |
|
|
|
39,568,090 |
|
|
|
39,602,199 |
|
|
|
39,794,815 |
|
|
|
39,773,602 |
|
|
|
|
|
|
|
|
|
|
|
Common
equity ratio (GAAP) |
|
12.33 |
|
% |
|
13.83 |
|
% |
|
13.82 |
|
% |
|
12.52 |
|
% |
|
12.56 |
% |
Tangible
common equity ratio (non-GAAP) (4) |
|
9.99 |
|
|
|
10.06 |
|
|
|
9.95 |
|
|
|
9.97 |
|
|
|
9.91 |
|
|
|
|
|
|
|
|
|
|
|
Regulatory
capital ratios (Bancorp): |
|
|
|
|
|
|
|
|
|
Leverage ratio |
|
11.57 |
|
% |
|
11.65 |
|
% |
|
11.60 |
|
% |
|
10.19 |
|
% |
|
9.89 |
% |
Common equity Tier 1 risk-based ratio |
|
10.69 |
|
|
|
10.64 |
|
|
|
10.73 |
|
|
|
11.09 |
|
|
|
11.36 |
|
Risk-based Tier 1 capital ratio |
|
12.21 |
|
|
|
12.19 |
|
|
|
12.35 |
|
|
|
11.17 |
|
|
|
11.44 |
|
Risk-based total capital ratio |
|
15.23 |
|
|
|
15.26 |
|
|
|
15.54 |
|
|
|
14.58 |
|
|
|
15.08 |
|
|
|
|
|
|
|
|
|
|
|
Regulatory
capital ratios (Bank): |
|
|
|
|
|
|
|
|
|
Leverage ratio |
|
11.41 |
|
% |
|
11.43 |
|
% |
|
11.33 |
|
% |
|
11.34 |
|
% |
|
11.06 |
% |
Common equity Tier 1 risk-based ratio |
|
12.04 |
|
|
|
11.96 |
|
|
|
12.06 |
|
|
|
12.42 |
|
|
|
12.78 |
|
Risk-based Tier 1 capital ratio |
|
12.04 |
|
|
|
11.96 |
|
|
|
12.06 |
|
|
|
12.42 |
|
|
|
12.78 |
|
Risk-based total capital ratio |
|
13.52 |
|
|
|
13.44 |
|
|
|
13.61 |
|
|
|
14.07 |
|
|
|
14.55 |
|
|
|
|
|
|
|
|
|
|
|
Book value
per share (GAAP) |
$ |
26.00 |
|
|
$ |
25.61 |
|
|
$ |
24.94 |
|
|
$ |
24.25 |
|
|
$ |
23.52 |
|
Tangible
book value per share (non-GAAP) (5) |
|
20.51 |
|
|
|
20.12 |
|
|
|
19.43 |
|
|
|
18.76 |
|
|
|
18.02 |
|
|
|
|
|
|
|
|
|
|
|
Net
Loan (Recoveries) Charge-Off Detail |
|
|
|
|
|
|
|
|
|
Net loan
charge-offs (recoveries): |
|
|
|
|
|
|
|
|
|
Charge-offs |
$ |
274 |
|
|
$ |
458 |
|
|
$ |
1,727 |
|
|
$ |
212 |
|
|
$ |
- |
|
Recoveries |
|
(32 |
) |
|
|
(217 |
) |
|
|
(113 |
) |
|
|
(14 |
) |
|
|
(61 |
) |
Net loan charge-offs (recoveries) |
$ |
242 |
|
|
$ |
241 |
|
|
$ |
1,614 |
|
|
$ |
198 |
|
|
$ |
(61 |
) |
Net loan charge-offs (recoveries) as a % of
average loans receivable (annualized) |
|
0.01 |
|
% |
|
0.01 |
|
% |
|
0.10 |
|
% |
|
0.01 |
|
% |
|
(0.00 |
)% |
|
|
|
|
|
|
|
|
|
|
Asset Quality |
|
|
|
|
|
|
|
|
|
Nonaccrual
loans |
$ |
59,403 |
|
|
$ |
61,700 |
|
|
$ |
65,959 |
|
|
$ |
56,213 |
|
|
$ |
60,940 |
|
OREO |
|
316 |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
Nonperforming assets |
$ |
59,719 |
|
|
$ |
61,700 |
|
|
$ |
65,959 |
|
|
$ |
56,213 |
|
|
$ |
60,940 |
|
|
|
|
|
|
|
|
|
|
|
Allowance
for credit losses - loans ("ACL") |
|
80,070 |
|
|
|
78,773 |
|
|
|
77,986 |
|
|
|
78,684 |
|
|
|
80,568 |
|
|
|
|
|
|
|
|
|
|
|
Loans
receivable |
$ |
6,979,595 |
|
|
$ |
6,828,622 |
|
|
$ |
6,576,439 |
|
|
$ |
6,407,904 |
|
|
$ |
6,277,191 |
|
Less: PPP
loans |
|
54,301 |
|
|
|
93,057 |
|
|
|
177,829 |
|
|
|
326,788 |
|
|
|
522,340 |
|
Loans
receivable (excluding PPP loans) |
$ |
6,925,294 |
|
|
$ |
6,735,565 |
|
|
$ |
6,398,610 |
|
|
$ |
6,081,116 |
|
|
$ |
5,754,851 |
|
|
|
|
|
|
|
|
|
|
|
Nonaccrual
loans as a % of loans receivable |
|
0.85 |
|
% |
|
0.90 |
|
% |
|
1.00 |
|
% |
|
0.88 |
|
% |
|
0.97 |
|
Nonperforming assets as a % of total assets |
|
0.72 |
|
|
|
0.76 |
|
|
|
0.83 |
|
|
|
0.73 |
|
|
|
0.82 |
|
ACL as a %
of loans receivable |
|
1.15 |
|
|
|
1.15 |
|
|
|
1.19 |
|
|
|
1.23 |
|
|
|
1.28 |
|
ACL as a %
of loans receivable (excluding PPP loans) |
|
1.16 |
|
|
|
1.17 |
|
|
|
1.22 |
|
|
|
1.29 |
|
|
|
1.40 |
|
ACL as a %
of nonaccrual loans |
|
134.8 |
|
|
|
127.7 |
|
|
|
118.2 |
|
|
|
140.0 |
|
|
|
132.2 |
|
|
|
|
|
|
|
|
|
|
|
(4) Tangible
common equity divided by tangible assets. |
|
|
|
|
|
|
|
|
|
(5) Tangible common equity divided by common shares outstanding at
period-end. |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
CONNECTONE BANCORP, INC. AND SUBSIDIARIES |
|
|
|
|
|
|
|
|
|
|
|
|
|
NET INTEREST MARGIN ANALYSIS |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(dollars in thousands) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For the
Three Months Ended |
|
|
|
|
|
March 31, 2022 |
December 31, 2021 |
March 31, 2021 |
|
|
|
|
|
Average |
|
|
|
|
Average |
|
|
|
|
Average |
|
|
|
Interest-earning assets: |
|
Balance |
Interest |
Rate (7) |
|
Balance |
Interest |
Rate (7) |
|
Balance |
Interest |
Rate (7) |
Investment securities (1) (2) |
$ |
545,203 |
|
$ |
2,771 |
|
2.06 |
% |
|
$ |
480,143 |
|
$ |
1,921 |
|
1.59 |
% |
|
$ |
473,181 |
|
$ |
2,058 |
|
1.76 |
% |
Loans receivable and loans held-for-sale (2) (3) (4) |
|
|
|
|
6,871,477 |
|
|
76,320 |
|
4.50 |
|
|
|
6,717,685 |
|
|
77,220 |
|
4.56 |
|
|
|
6,242,960 |
|
|
70,676 |
|
4.59 |
|
Federal funds sold and interest- |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
bearing deposits with banks |
|
312,224 |
|
|
120 |
|
0.16 |
|
|
|
291,243 |
|
|
121 |
|
0.16 |
|
|
|
269,537 |
|
|
49 |
|
0.07 |
|
Restricted investment in bank stock |
|
24,977 |
|
|
214 |
|
3.47 |
|
|
|
19,902 |
|
|
207 |
|
4.13 |
|
|
|
22,822 |
|
|
256 |
|
4.55 |
|
Total interest-earning
assets |
|
7,753,881 |
|
|
79,425 |
|
4.15 |
|
|
|
7,508,973 |
|
|
79,469 |
|
4.20 |
|
|
|
7,008,500 |
|
|
73,039 |
|
4.23 |
|
Allowance for loan losses |
|
|
(79,763 |
) |
|
|
|
|
|
(79,074 |
) |
|
|
|
|
|
(81,549 |
) |
|
|
|
Noninterest-earning assets |
|
|
589,264 |
|
|
|
|
|
|
597,270 |
|
|
|
|
|
|
573,083 |
|
|
|
|
Total assets |
|
|
$ |
8,263,382 |
|
|
|
|
|
$ |
8,027,169 |
|
|
|
|
|
$ |
7,500,034 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest-bearing liabilities: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Time deposits |
|
|
$ |
1,124,614 |
|
|
2,154 |
|
0.78 |
|
|
$ |
1,204,374 |
|
$ |
2,717 |
|
0.90 |
|
|
|
1,422,295 |
|
|
5,151 |
|
1.47 |
|
Other interest-bearing deposits |
|
3,851,558 |
|
|
2,856 |
|
0.30 |
|
|
|
3,672,311 |
|
|
2,563 |
|
0.28 |
|
|
|
3,225,751 |
|
|
2,434 |
|
0.31 |
|
Total interest-bearing
deposits |
|
4,976,172 |
|
|
5,010 |
|
0.41 |
|
|
|
4,876,685 |
|
|
5,280 |
|
0.43 |
|
|
|
4,648,046 |
|
|
7,585 |
|
0.66 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Borrowings |
|
|
|
404,907 |
|
|
1,377 |
|
1.38 |
|
|
|
292,847 |
|
|
1,102 |
|
1.49 |
|
|
|
375,511 |
|
|
1,674 |
|
1.81 |
|
Subordinated debentures |
|
|
152,977 |
|
|
2,168 |
|
5.75 |
|
|
|
152,902 |
|
|
2,167 |
|
5.62 |
|
|
|
154,341 |
|
|
2,167 |
|
5.69 |
|
Capital lease obligation |
|
|
1,917 |
|
|
28 |
|
5.92 |
|
|
|
1,967 |
|
|
30 |
|
6.05 |
|
|
|
2,115 |
|
|
32 |
|
6.14 |
|
Total interest-bearing
liabilities |
|
5,535,973 |
|
|
8,583 |
|
0.63 |
|
|
|
5,324,401 |
|
|
8,579 |
|
0.64 |
|
|
|
5,180,013 |
|
|
11,458 |
|
0.90 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Noninterest-bearing demand deposits |
|
1,547,055 |
|
|
|
|
|
|
1,537,316 |
|
|
|
|
|
|
1,348,585 |
|
|
|
|
Other liabilities |
|
|
|
48,386 |
|
|
|
|
|
|
51,928 |
|
|
|
|
|
|
43,395 |
|
|
|
|
Total noninterest-bearing
liabilities |
|
1,595,441 |
|
|
|
|
|
|
1,589,244 |
|
|
|
|
|
|
1,391,980 |
|
|
|
|
Stockholders' equity |
|
|
1,131,968 |
|
|
|
|
|
|
1,113,524 |
|
|
|
|
|
|
928,041 |
|
|
|
|
Total liabilities and
stockholders' equity |
$ |
8,263,382 |
|
|
|
|
|
$ |
8,027,169 |
|
|
|
|
|
$ |
7,500,034 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net interest income (tax equivalent basis) |
|
|
70,842 |
|
|
|
|
|
|
70,890 |
|
|
|
|
|
|
61,581 |
|
|
|
Net interest spread (5) |
|
|
|
3.53 |
% |
|
|
|
3.56 |
% |
|
|
|
3.33 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net interest margin (6) |
|
|
|
3.71 |
% |
|
|
|
3.75 |
% |
|
|
|
3.56 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Tax equivalent adjustment |
|
|
|
(484 |
) |
|
|
|
|
|
(429 |
) |
|
|
|
|
|
(418 |
) |
|
|
Net interest income |
|
|
$ |
70,358 |
|
|
|
|
|
$ |
70,461 |
|
|
|
|
|
$ |
61,163 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) Average balances are calculated on amortized cost. |
|
|
|
|
|
|
|
|
|
|
|
|
|
(2) Interest income is
presented on a tax equivalent basis using 21% federal tax
rate. |
|
|
|
|
|
|
|
|
|
|
|
(3) Includes loan fee
income and accretion of purchase accounting adjustments. |
|
|
|
|
|
|
|
|
|
|
|
|
(4) Loans include nonaccrual loans. |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(5) Represents
difference between the average yield on interest-earning assets and
the average cost of interest-bearing |
|
|
|
|
|
|
|
liabilities and is presented on
a tax equivalent basis. |
|
|
|
|
|
|
|
|
|
|
|
|
|
(6) Represents net
interest income on a tax equivalent basis divided by average total
interest-earning assets. |
|
|
|
|
|
|
|
|
(7) Rates are annualized. |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
ConnectOne Bancorp (NASDAQ:CNOB)
Historical Stock Chart
From Jun 2024 to Jul 2024
ConnectOne Bancorp (NASDAQ:CNOB)
Historical Stock Chart
From Jul 2023 to Jul 2024