ConnectOne Bancorp, Inc. Reports Third Quarter 2024 Results; Declares Common and Preferred Dividends
ConnectOne Bancorp reported net income of $15.7 million for Q3 2024, down from $17.5 million in Q2 2024 and $19.9 million in Q3 2023. Diluted EPS was $0.41, compared to $0.46 in Q2 and $0.51 in Q3 2023. The decrease was primarily due to increased provision for credit losses, higher noninterest expenses, and decreased net interest income. The company announced a planned merger with The First of Long Island and declared a cash dividend of $0.18 per common share. The net interest margin was 2.67%, with expectations of a 10 basis point increase in Q4 2024.
ConnectOne Bancorp ha riportato un utile netto di 15,7 milioni di dollari per il terzo trimestre del 2024, in calo rispetto ai 17,5 milioni di dollari del secondo trimestre 2024 e ai 19,9 milioni di dollari del terzo trimestre 2023. L'utile per azione diluito è stato di 0,41 dollari, rispetto a 0,46 dollari nel secondo trimestre e 0,51 dollari nel terzo trimestre 2023. La riduzione è stata principalmente dovuta a un aumento delle svalutazioni per perdite su crediti, maggiori spese non legate agli interessi e diminuzione del reddito netto da interessi. L'azienda ha annunciato una fusione programmata con The First of Long Island e ha dichiarato un dividendo in contante di 0,18 dollari per azione ordinaria. Il margine d'interesse netto era del 2,67%, con aspettative di un aumento di 10 punti base nel quarto trimestre del 2024.
ConnectOne Bancorp reportó un ingreso neto de 15,7 millones de dólares para el tercer trimestre de 2024, una disminución respecto a 17,5 millones de dólares en el segundo trimestre de 2024 y 19,9 millones de dólares en el tercer trimestre de 2023. La utilidad por acción diluida fue de 0,41 dólares, en comparación con 0,46 dólares en el segundo trimestre y 0,51 dólares en el tercer trimestre de 2023. La disminución se debió principalmente al aumento de la provisión para pérdidas crediticias, mayores gastos no relacionados con intereses y disminución del ingreso neto por intereses. La compañía anunció una fusión planificada con The First of Long Island y declaró un dividendo en efectivo de 0,18 dólares por acción común. El margen de interés neto fue del 2,67%, con expectativas de un aumento de 10 puntos básicos en el cuarto trimestre de 2024.
ConnectOne Bancorp는 2024년 3분기에 1,570만 달러의 순이익을 보고했으며, 이는 2024년 2분기 1,750만 달러 및 2023년 3분기 1,990만 달러에서 감소한 수치입니다. 희석 주당순이익(EPS)은 0.41달러로, 2분기 0.46달러 및 3분기 2023년 0.51달러와 비교됩니다. 감소는 주로 신용 손실에 대한 충당금 증가, 비이자 비용 증가, 순이자 수익 감소에 기인합니다. 회사는 Long Island의 The First와의 예정된 합병을 발표했으며, 일반주당 0.18달러의 현금 배당금을 선언했습니다. 순이자 마진은 2.67%였으며, 2024년 4분기에 10bp 증가할 것으로 예상됩니다.
ConnectOne Bancorp a rapporté un revenu net de 15,7 millions de dollars pour le troisième trimestre 2024, en baisse par rapport à 17,5 millions de dollars au deuxième trimestre 2024 et 19,9 millions de dollars au troisième trimestre 2023. Le BPA dilué était de 0,41 dollar, contre 0,46 dollar au T2 et 0,51 dollar au T3 2023. Cette diminution est principalement due à l'augmentation des provisions pour pertes de crédit, des charges non d'intérêts plus élevées et une baisse du revenu net d'intérêts. L'entreprise a annoncé une fusion prévue avec The First of Long Island et a déclaré un dividende en espèces de 0,18 dollar par action ordinaire. La marge d'intérêt nette était de 2,67%, avec des attentes d'une augmentation de 10 points de base au quatrième trimestre 2024.
ConnectOne Bancorp meldete einen Nettoertrag von 15,7 Millionen Dollar für das 3. Quartal 2024, ein Rückgang von 17,5 Millionen Dollar im 2. Quartal 2024 und von 19,9 Millionen Dollar im 3. Quartal 2023. Der verwässerte Gewinn pro Aktie lag bei 0,41 Dollar, verglichen mit 0,46 Dollar im 2. Quartal und 0,51 Dollar im 3. Quartal 2023. Der Rückgang resultierte hauptsächlich aus höheren Rückstellungen für Kreditverluste, gestiegenen nichtzinsbezogenen Aufwendungen und geringeren Zinseinnahmen. Das Unternehmen gab eine geplante Fusion mit The First of Long Island bekannt und erklärte eine Barausschüttung von 0,18 Dollar je Stammaktie. Die Nettozinsspanne betrug 2,67%, mit der Erwartung eines Anstiegs um 10 Basispunkte im 4. Quartal 2024.
- Declared quarterly cash dividend of $0.18 per share
- Expected net interest margin increase of 10+ basis points in Q4 2024
- Strong asset quality with nonperforming assets at 0.53% of total assets
- Tangible book value per share increased to $23.85 from $23.14 in December 2023
- Net income declined to $15.7M from $17.5M in Q2 2024 (-10.3%)
- Diluted EPS decreased to $0.41 from $0.46 in Q2 2024 (-10.9%)
- Net interest margin contracted to 2.67% from 2.72% in Q2 2024
- Criticized and classified loans increased to 2.23% from 1.35% in December 2023
Insights
ConnectOne Bancorp's Q3 2024 results reveal concerning trends with
The bank's liability-sensitive balance sheet positioning could prove advantageous in a falling rate environment, particularly with the Fed's recent 50bps cut. However, current performance metrics raise concerns: NIM contracted to
ENGLEWOOD CLIFFS, N.J., Oct. 24, 2024 (GLOBE NEWSWIRE) -- 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
Operating net income available to common stockholders, which excludes non-operating items, was
The decrease in net income available to common stockholders and diluted earnings per share from the second quarter of 2024 was primarily due to a
“In September, we announced a planned merger with The First of Long Island Corporation, a transaction that we believe will create a truly premier New York-metro community bank,” commented Frank Sorrentino, ConnectOne’s Chairman and Chief Executive Officer. “Our integration planning is off to a good start, the initial regulatory process is underway, and we’re excited about creating a significantly enhanced platform for continued growth across all markets and communities we serve. Further, the economic environment and interest rate outlook confirms our belief that this combination will deliver meaningful benefits to our communities, clients and shareholders. We look forward to updating you on our progress in the months and quarters ahead.”
Mr. Sorrentino added, “Meanwhile, we remain focused and committed to our client-first culture and relationship banking model. During the first nine months of the year, we have actively reduced non-relationship loans from our balance sheet in an effort to improve our loan-to-deposit ratio, diversify our loan mix, and capitalize on the improving interest rate environment.”
“The net interest margin, for the third quarter, on a core basis was flat; however, as a result of the Fed’s 50 basis-point cut in late September, we ended the quarter with a so-called spot margin upwards of 10 basis points wider. And with our liability-sensitive balance sheet, we are positioned to drive increased profitability through the fourth quarter, into 2025 and post-merger completion.”
Dividend Declarations
The Company announced that its Board of Directors declared a cash dividend on both its common stock and its outstanding preferred stock. A cash dividend on common stock of
Operating Results
Fully taxable equivalent net interest income for the third quarter of 2024 was
Fully taxable equivalent net interest income for the third quarter of 2024 decreased by
Noninterest income was
Noninterest expenses were
Income tax expense was
Asset Quality
The provision for credit losses was
Nonperforming assets, which includes nonaccrual loans and other real estate owned (the Bank had no other real estate owned during the periods reported), was
Selected Balance Sheet Items
The Company’s total assets were
The Company’s total stockholders’ equity was
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.
Third Quarter 2024 Results Conference Call
Management will also host a conference call and audio webcast at 10:00 a.m. ET on October 24, 2024 to review the Company's financial performance and operating results. The conference call dial-in number is 1 (646) 307-1963, access code 5504182. 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, October 24, 2024 and ending on Thursday, October 31, 2024 by dialing 1 (609) 800-9909, access code 5504182. 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 the Bank’s fintech subsidiary, BoeFly, Inc. 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, Inc. 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.
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 U.S. Securities and Exchange Commission, as supplemented by the Company’s subsequent filings with the U.S. 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 health emergencies and natural disasters 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. Burns
Senior Executive Vice President & CFO
201.816.4474: bburns@cnob.com
Media Contact:
Shannan Weeks
MikeWorldWide
732.299.7890: sweeks@mww.com
CONNECTONE BANCORP, INC. AND SUBSIDIARIES | ||||||||||||
CONSOLIDATED CONDENSED STATEMENTS OF FINANCIAL CONDITION | ||||||||||||
(in thousands) | ||||||||||||
September 30, | December 31, | September 30, | ||||||||||
2024 | 2023 | 2023 | ||||||||||
(unaudited) | (unaudited) | |||||||||||
ASSETS | ||||||||||||
Cash and due from banks | $ | 61,093 | $ | 61,421 | $ | 56,170 | ||||||
Interest-bearing deposits with banks | 186,155 | 181,293 | 197,128 | |||||||||
Cash and cash equivalents | 247,248 | 242,714 | 253,298 | |||||||||
Investment securities | 646,713 | 617,162 | 581,867 | |||||||||
Equity securities | 20,399 | 18,564 | 17,677 | |||||||||
Loans receivable | 8,111,976 | 8,345,145 | 8,181,109 | |||||||||
Less: Allowance for credit losses - loans | 82,494 | 81,974 | 88,230 | |||||||||
Net loans receivable | 8,029,482 | 8,263,171 | 8,092,879 | |||||||||
Investment in restricted stock, at cost | 42,772 | 51,457 | 49,387 | |||||||||
Bank premises and equipment, net | 29,068 | 30,779 | 28,432 | |||||||||
Accrued interest receivable | 46,951 | 49,108 | 46,795 | |||||||||
Bank owned life insurance | 242,016 | 237,644 | 236,009 | |||||||||
Right of use operating lease assets | 14,211 | 12,007 | 11,229 | |||||||||
Goodwill | 208,372 | 208,372 | 208,372 | |||||||||
Core deposit intangibles | 4,935 | 5,874 | 6,222 | |||||||||
Other assets | 107,436 | 118,751 | 146,718 | |||||||||
Total assets | $ | 9,639,603 | $ | 9,855,603 | $ | 9,678,885 | ||||||
LIABILITIES | ||||||||||||
Deposits: | ||||||||||||
Noninterest-bearing | $ | 1,262,568 | $ | 1,259,364 | $ | 1,224,125 | ||||||
Interest-bearing | 6,261,537 | 6,276,838 | 6,214,370 | |||||||||
Total deposits | 7,524,105 | 7,536,202 | 7,438,495 | |||||||||
Borrowings | 742,133 | 933,579 | 887,590 | |||||||||
Subordinated debentures, net | 79,818 | 79,439 | 79,313 | |||||||||
Operating lease liabilities | 15,252 | 13,171 | 12,424 | |||||||||
Other liabilities | 38,799 | 76,592 | 72,909 | |||||||||
Total liabilities | 8,400,107 | 8,638,983 | 8,490,731 | |||||||||
COMMITMENTS AND CONTINGENCIES | ||||||||||||
STOCKHOLDERS' EQUITY | ||||||||||||
Preferred stock | 110,927 | 110,927 | 110,927 | |||||||||
Common stock | 586,946 | 586,946 | 586,946 | |||||||||
Additional paid-in capital | 34,995 | 33,182 | 32,027 | |||||||||
Retained earnings | 619,497 | 590,970 | 579,776 | |||||||||
Treasury stock | (76,116 | ) | (70,296 | ) | (68,108 | ) | ||||||
Accumulated other comprehensive loss | (36,753 | ) | (35,109 | ) | (53,414 | ) | ||||||
Total stockholders' equity | 1,239,496 | 1,216,620 | 1,188,154 | |||||||||
Total liabilities and stockholders' equity | $ | 9,639,603 | $ | 9,855,603 | $ | 9,678,885 | ||||||
CONNECTONE BANCORP, INC. AND SUBSIDIARIES | ||||||||||||||
CONSOLIDATED STATEMENTS OF INCOME | ||||||||||||||
(dollars in thousands, except for per share data) | ||||||||||||||
Three Months Ended | Nine Months Ended | |||||||||||||
09/30/24 | 09/30/23 | 09/30/24 | 09/30/23 | |||||||||||
Interest income | ||||||||||||||
Interest and fees on loans | $ | 119,280 | $ | 115,405 | $ | 359,513 | $ | 333,356 | ||||||
Interest and dividends on investment securities: | ||||||||||||||
Taxable | 4,740 | 4,128 | 13,757 | 12,386 | ||||||||||
Tax-exempt | 1,119 | 1,136 | 3,394 | 3,475 | ||||||||||
Dividends | 1,048 | 907 | 3,390 | 2,750 | ||||||||||
Interest on federal funds sold and other short-term investments | 4,055 | 2,110 | 9,802 | 9,141 | ||||||||||
Total interest income | 130,242 | 123,686 | 389,856 | 361,108 | ||||||||||
Interest expense | ||||||||||||||
Deposits | 63,785 | 56,043 | 186,278 | 146,844 | ||||||||||
Borrowings | 5,570 | 5,286 | 20,952 | 20,980 | ||||||||||
Total interest expense | 69,355 | 61,329 | 207,230 | 167,824 | ||||||||||
Net interest income | 60,887 | 62,357 | 182,626 | 193,284 | ||||||||||
Provision for credit losses | 3,800 | 1,500 | 10,300 | 5,500 | ||||||||||
Net interest income after provision for credit losses | 57,087 | 60,857 | 172,326 | 187,784 | ||||||||||
Noninterest income | ||||||||||||||
Deposit, loan and other income | 1,817 | 1,605 | 5,063 | 4,553 | ||||||||||
Income on bank owned life insurance | 2,145 | 1,597 | 5,486 | 4,681 | ||||||||||
Net gains on sale of loans held-for-sale | 343 | 633 | 2,126 | 1,232 | ||||||||||
Net losses (gains) on equity securities | 432 | (273 | ) | 309 | (674 | ) | ||||||||
Total noninterest income | 4,737 | 3,562 | 12,984 | 9,792 | ||||||||||
Noninterest expenses | ||||||||||||||
Salaries and employee benefits | 22,957 | 22,251 | 67,809 | 66,213 | ||||||||||
Occupancy and equipment | 2,889 | 2,738 | 8,797 | 8,176 | ||||||||||
FDIC insurance | 1,800 | 1,800 | 5,400 | 4,465 | ||||||||||
Professional and consulting | 2,147 | 1,834 | 5,998 | 5,960 | ||||||||||
Marketing and advertising | 635 | 554 | 1,925 | 1,642 | ||||||||||
Information technology and communications | 4,464 | 3,487 | 13,051 | 10,192 | ||||||||||
Merger and restructuring | 742 | - | 742 | - | ||||||||||
Amortization of core deposit intangibles | 297 | 347 | 939 | 1,090 | ||||||||||
Other expenses | 2,710 | 2,773 | 8,639 | 8,366 | ||||||||||
Total noninterest expenses | 38,641 | 35,784 | 113,300 | 106,104 | ||||||||||
Income before income tax expense | 23,183 | 28,635 | 72,010 | 91,472 | ||||||||||
Income tax expense | 6,022 | 7,228 | 18,588 | 23,742 | ||||||||||
Net income | 17,161 | 21,407 | 53,422 | 67,730 | ||||||||||
Preferred dividends | 1,509 | 1,509 | 4,527 | 4,527 | ||||||||||
Net income available to common stockholders | $ | 15,652 | $ | 19,898 | $ | 48,895 | $ | 63,203 | ||||||
Earnings per common share: | ||||||||||||||
Basic | $ | 0.41 | $ | 0.51 | $ | 1.27 | $ | 1.62 | ||||||
Diluted | 0.41 | 0.51 | 1.27 | 1.61 | ||||||||||
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 | ||||||||||||||||||||
Sept. 30, | Jun. 30, | Mar. 31, | Dec. 31, | Sep. 30, | ||||||||||||||||
2024 | 2024 | 2024 | 2023 | 2023 | ||||||||||||||||
Selected Financial Data | (dollars in thousands) | |||||||||||||||||||
Total assets | $ | 9,639,603 | $ | 9,723,731 | $ | 9,853,964 | $ | 9,855,603 | $ | 9,678,885 | ||||||||||
Loans receivable: | ||||||||||||||||||||
Commercial | $ | 1,505,743 | $ | 1,491,079 | $ | 1,561,063 | $ | 1,564,768 | $ | 1,464,479 | ||||||||||
Commercial real estate | 3,261,160 | 3,274,941 | 3,333,488 | 3,342,603 | 3,288,704 | |||||||||||||||
Multifamily | 2,482,258 | 2,499,581 | 2,507,893 | 2,566,904 | 2,559,927 | |||||||||||||||
Commercial construction | 616,087 | 639,168 | 646,593 | 620,496 | 622,748 | |||||||||||||||
Residential | 250,249 | 256,786 | 254,214 | 256,041 | 251,416 | |||||||||||||||
Consumer | 835 | 945 | 850 | 1,029 | 936 | |||||||||||||||
Gross loans | 8,116,332 | 8,162,500 | 8,304,101 | 8,351,841 | 8,188,210 | |||||||||||||||
Net deferred loan fees | (4,356 | ) | (4,597 | ) | (6,144 | ) | (6,696 | ) | (7,101 | ) | ||||||||||
Loans receivable | 8,111,976 | 8,157,903 | 8,297,957 | 8,345,145 | 8,181,109 | |||||||||||||||
Loans held-for-sale | - | 435 | - | - | - | |||||||||||||||
Total loans | $ | 8,111,976 | $ | 8,158,338 | $ | 8,297,957 | $ | 8,345,145 | $ | 8,181,109 | ||||||||||
Investment and equity securities | $ | 667,112 | $ | 640,322 | $ | 638,854 | $ | 635,726 | $ | 599,544 | ||||||||||
Goodwill and other intangible assets | 213,307 | 213,604 | 213,925 | 214,246 | 214,594 | |||||||||||||||
Deposits: | ||||||||||||||||||||
Noninterest-bearing demand | $ | 1,262,568 | $ | 1,268,882 | $ | 1,290,523 | $ | 1,259,364 | $ | 1,224,125 | ||||||||||
Time deposits | 2,614,187 | 2,593,165 | 2,623,391 | 2,531,371 | 2,522,210 | |||||||||||||||
Other interest-bearing deposits | 3,647,350 | 3,713,967 | 3,674,740 | 3,745,467 | 3,692,160 | |||||||||||||||
Total deposits | $ | 7,524,105 | $ | 7,576,014 | $ | 7,588,654 | $ | 7,536,202 | $ | 7,438,495 | ||||||||||
Borrowings | $ | 742,133 | $ | 756,144 | $ | 877,568 | $ | 933,579 | $ | 887,590 | ||||||||||
Subordinated debentures (net of debt issuance costs) | 79,818 | 79,692 | 79,566 | 79,439 | 79,313 | |||||||||||||||
Total stockholders' equity | 1,239,496 | 1,224,227 | 1,216,609 | 1,216,620 | 1,188,154 | |||||||||||||||
Quarterly Average Balances | ||||||||||||||||||||
Total assets | $ | 9,742,853 | $ | 9,745,853 | $ | 9,860,753 | $ | 9,690,746 | $ | 9,625,625 | ||||||||||
Loans receivable: | ||||||||||||||||||||
Commercial | $ | 1,485,777 | $ | 1,517,446 | $ | 1,552,360 | $ | 1,510,634 | $ | 1,471,006 | ||||||||||
Commercial real estate (including multifamily) | 5,752,467 | 5,789,498 | 5,890,853 | 5,874,854 | 5,821,794 | |||||||||||||||
Commercial construction | 628,740 | 652,227 | 637,993 | 630,468 | 625,640 | |||||||||||||||
Residential | 252,975 | 254,284 | 252,965 | 253,200 | 253,114 | |||||||||||||||
Consumer | 7,887 | 5,155 | 5,091 | 6,006 | 4,972 | |||||||||||||||
Gross loans | 8,127,846 | 8,218,610 | 8,339,262 | 8,275,162 | 8,176,526 | |||||||||||||||
Net deferred loan fees | (4,513 | ) | (5,954 | ) | (6,533 | ) | (6,894 | ) | (7,387 | ) | ||||||||||
Loans receivable | 8,123,333 | 8,212,656 | 8,332,729 | 8,268,268 | 8,169,139 | |||||||||||||||
Loans held-for-sale | 83 | 169 | 99 | 31 | 171 | |||||||||||||||
Total loans | $ | 8,123,416 | $ | 8,212,825 | $ | 8,332,828 | $ | 8,268,299 | $ | 8,169,310 | ||||||||||
Investment and equity securities | $ | 650,897 | $ | 637,551 | $ | 633,270 | $ | 602,287 | $ | 628,429 | ||||||||||
Goodwill and other intangible assets | 213,502 | 213,813 | 214,133 | 214,472 | 214,822 | |||||||||||||||
Deposits: | ||||||||||||||||||||
Noninterest-bearing demand | $ | 1,259,912 | $ | 1,256,251 | $ | 1,254,201 | $ | 1,248,132 | $ | 1,275,325 | ||||||||||
Time deposits | 2,625,329 | 2,587,706 | 2,567,767 | 2,495,091 | 2,606,122 | |||||||||||||||
Other interest-bearing deposits | 3,747,427 | 3,721,167 | 3,696,374 | 3,747,093 | 3,723,561 | |||||||||||||||
Total deposits | $ | 7,632,668 | $ | 7,565,124 | $ | 7,518,342 | $ | 7,490,316 | $ | 7,605,008 | ||||||||||
Borrowings | $ | 717,586 | $ | 787,256 | $ | 947,003 | $ | 823,123 | $ | 651,112 | ||||||||||
Subordinated debentures (net of debt issuance costs) | 79,735 | 79,609 | 79,483 | 79,356 | 79,230 | |||||||||||||||
Total stockholders' equity | 1,234,724 | 1,220,621 | 1,220,818 | 1,198,389 | 1,202,647 | |||||||||||||||
Three Months Ended | ||||||||||||||||||||
Sept. 30, | Jun. 30, | Mar. 31, | Dec. 31, | Sep. 30, | ||||||||||||||||
2024 | 2024 | 2024 | 2023 | 2023 | ||||||||||||||||
(dollars in thousands, except for per share data) | ||||||||||||||||||||
Net interest income | $ | 60,887 | $ | 61,439 | $ | 60,300 | $ | 61,822 | $ | 62,357 | ||||||||||
Provision for credit losses | 3,800 | 2,500 | 4,000 | 2,700 | 1,500 | |||||||||||||||
Net interest income after provision for credit losses | 57,087 | 58,939 | 56,300 | 59,122 | 60,857 | |||||||||||||||
Noninterest income | ||||||||||||||||||||
Deposit, loan and other income | 1,817 | 1,654 | 1,592 | 1,545 | 1,605 | |||||||||||||||
Income on bank owned life insurance | 2,145 | 1,677 | 1,664 | 1,635 | 1,597 | |||||||||||||||
Net gains on sale of loans held-for-sale | 343 | 1,277 | 506 | 472 | 633 | |||||||||||||||
Net gains (losses) on equity securities | 432 | (209 | ) | 86 | 557 | (273 | ) | |||||||||||||
Total noninterest income | 4,737 | 4,399 | 3,848 | 4,209 | 3,562 | |||||||||||||||
Noninterest expenses | ||||||||||||||||||||
Salaries and employee benefits | 22,957 | 22,721 | 22,131 | 22,010 | 22,251 | |||||||||||||||
Occupancy and equipment | 2,889 | 2,899 | 3,009 | 2,708 | 2,738 | |||||||||||||||
FDIC insurance | 1,800 | 1,800 | 1,800 | 3,900 | 1,800 | |||||||||||||||
Professional and consulting | 2,147 | 1,923 | 1,928 | 1,587 | 1,834 | |||||||||||||||
Marketing and advertising | 635 | 613 | 677 | 323 | 554 | |||||||||||||||
Information technology and communications | 4,464 | 4,198 | 4,389 | 4,148 | 3,487 | |||||||||||||||
Merger and restructuring | 742 | - | - | - | - | |||||||||||||||
Amortization of core deposit intangible | 297 | 321 | 321 | 348 | 347 | |||||||||||||||
Other expenses | 2,710 | 3,119 | 2,810 | 2,821 | 2,773 | |||||||||||||||
Total noninterest expenses | 38,641 | 37,594 | 37,065 | 37,845 | 35,784 | |||||||||||||||
Income before income tax expense | 23,183 | 25,744 | 23,083 | 25,486 | 28,635 | |||||||||||||||
Income tax expense | 6,022 | 6,688 | 5,878 | 6,213 | 7,228 | |||||||||||||||
Net income | 17,161 | 19,056 | 17,205 | 19,273 | 21,407 | |||||||||||||||
Preferred dividends | 1,509 | 1,509 | 1,509 | 1,509 | 1,509 | |||||||||||||||
Net income available to common stockholders | $ | 15,652 | $ | 17,547 | $ | 15,696 | $ | 17,764 | $ | 19,898 | ||||||||||
Weighted average diluted common shares outstanding | 38,525,484 | 38,448,594 | 38,511,747 | 38,651,391 | 38,829,681 | |||||||||||||||
Diluted EPS (GAAP) | $ | 0.41 | $ | 0.46 | $ | 0.41 | $ | 0.46 | $ | 0.51 | ||||||||||
Reconciliation of GAAP Net Income to Operating Net Income: | ||||||||||||||||||||
Net income | $ | 17,161 | $ | 19,056 | $ | 17,205 | $ | 19,273 | $ | 21,407 | ||||||||||
Merger and restructuring | 742 | - | - | - | - | |||||||||||||||
Amoritization of core deposit intangibles | 297 | 321 | 321 | 348 | 347 | |||||||||||||||
FDIC special assessment | - | - | - | 2,100 | - | |||||||||||||||
Net (gains) losses on equity securities | (432 | ) | 209 | (86 | ) | (557 | ) | 273 | ||||||||||||
Tax impact of adjustments | (171 | ) | (149 | ) | (66 | ) | (569 | ) | (187 | ) | ||||||||||
Operating net income | $ | 17,597 | $ | 19,437 | $ | 17,374 | $ | 20,595 | $ | 21,840 | ||||||||||
Preferred dividends | 1,509 | 1,509 | 1,509 | 1,509 | 1,509 | |||||||||||||||
Operating net income available to common stockholders | $ | 16,088 | $ | 17,928 | $ | 15,865 | $ | 19,086 | $ | 20,331 | ||||||||||
Opearting diluted EPS (non-GAAP)(1) | $ | 0.42 | $ | 0.47 | $ | 0.41 | $ | 0.49 | $ | 0.52 | ||||||||||
Return on Assets Measures | ||||||||||||||||||||
Average assets | $ | 9,742,853 | $ | 9,745,853 | $ | 9,860,753 | $ | 9,690,746 | $ | 9,625,625 | ||||||||||
Return on avg. assets | 0.70 | % | 0.79 | % | 0.70 | % | 0.79 | % | 0.88 | % | ||||||||||
Operating return on avg. assets (non-GAAP)(2) | 0.72 | 0.80 | 0.71 | 0.84 | 0.90 | |||||||||||||||
_________________________ | ||||||||||||||||||||
(1)Operating net income available to common stockholders divided by weighted average diluted shares outstanding. | ||||||||||||||||||||
(2)Operating net income divided by average assets. | ||||||||||||||||||||
Three Months Ended | ||||||||||||||||||||
Sept. 30, | Jun. 30, | Mar. 31, | Dec. 31, | Sep. 30, | ||||||||||||||||
2024 | 2024 | 2024 | 2023 | 2023 | ||||||||||||||||
Return on Equity Measures | (dollars in thousands) | |||||||||||||||||||
Average stockholders' equity | $ | 1,234,724 | $ | 1,220,621 | $ | 1,220,818 | $ | 1,198,389 | $ | 1,202,647 | ||||||||||
Less: average preferred stock | (110,927 | ) | (110,927 | ) | (110,927 | ) | (110,927 | ) | (110,927 | ) | ||||||||||
Average common equity | $ | 1,123,797 | $ | 1,109,694 | $ | 1,109,891 | $ | 1,087,462 | $ | 1,091,720 | ||||||||||
Less: average intangible assets | (213,502 | ) | (213,813 | ) | (214,133 | ) | (214,472 | ) | (214,822 | ) | ||||||||||
Average tangible common equity | $ | 910,295 | $ | 895,881 | $ | 895,758 | $ | 872,990 | $ | 876,898 | ||||||||||
Return on avg. common equity (GAAP) | 5.54 | % | 6.36 | % | 5.69 | % | 6.48 | % | 7.23 | % | ||||||||||
Operating return on avg. common equity (non-GAAP)(3) | 5.70 | 6.50 | 5.75 | 6.96 | 7.39 | |||||||||||||||
Return on avg. tangible common equity (non-GAAP)(4) | 6.93 | 7.98 | 7.15 | 8.18 | 9.11 | |||||||||||||||
Operating return on avg. tangible common equity (non-GAAP)(5) | 7.03 | 8.05 | 7.12 | 8.67 | 9.20 | |||||||||||||||
Efficiency Measures | ||||||||||||||||||||
Total noninterest expenses | $ | 38,641 | $ | 37,594 | $ | 37,065 | $ | 37,845 | $ | 35,784 | ||||||||||
Merger and restructuring | (742 | ) | - | - | - | - | ||||||||||||||
Amortization of core deposit intangibles | (297 | ) | (321 | ) | (321 | ) | (348 | ) | (347 | ) | ||||||||||
FDIC special assessment | - | - | - | (2,100 | ) | - | ||||||||||||||
Operating noninterest expense | $ | 37,602 | $ | 37,273 | $ | 36,744 | $ | 35,397 | $ | 35,437 | ||||||||||
Net interest income (tax equivalent basis) | $ | 61,710 | $ | 62,255 | $ | 61,111 | $ | 62,627 | $ | 63,208 | ||||||||||
Noninterest income | 4,737 | 4,399 | 3,848 | 4,209 | 3,562 | |||||||||||||||
Net (gains) losses on equity securities | (432 | ) | 209 | (86 | ) | (557 | ) | 273 | ||||||||||||
Operating revenue | $ | 66,015 | $ | 66,863 | $ | 64,873 | $ | 66,279 | $ | 67,043 | ||||||||||
Operating efficiency ratio (non-GAAP)(6) | 57.0 | % | 55.7 | % | 56.6 | % | 53.4 | % | 52.9 | % | ||||||||||
Net Interest Margin | ||||||||||||||||||||
Average interest-earning assets | $ | 9,206,038 | $ | 9,210,050 | $ | 9,323,291 | $ | 9,172,165 | $ | 9,089,431 | ||||||||||
Net interest income (tax equivalent basis) | 61,710 | 62,255 | 61,111 | 62,627 | 63,208 | |||||||||||||||
Net interest margin (GAAP) | 2.67 | % | 2.72 | % | 2.64 | % | 2.71 | % | 2.76 | % | ||||||||||
_________________________ | ||||||||||||||||||||
(3)Operating net income available to common stockholders divided by average common equity. | ||||||||||||||||||||
(4)Net income available to common stockholders, excluding amortization of intangible assets, divided by average tangible common equity. | ||||||||||||||||||||
(5)Operating net income available to common stockholders, divided by average tangible common equity. | ||||||||||||||||||||
(6)Operating noninterest expense divided by operating revenue. | ||||||||||||||||||||
As of | ||||||||||||||||||||
Sept. 30, | Jun. 30, | Mar. 31, | Dec. 31, | Sep. 30, | ||||||||||||||||
2024 | 2024 | 2024 | 2023 | 2023 | ||||||||||||||||
Capital Ratios and Book Value per Share | (dollars in thousands, except for per share data) | |||||||||||||||||||
Stockholders equity | $ | 1,239,496 | $ | 1,224,227 | $ | 1,216,609 | $ | 1,216,620 | $ | 1,188,154 | ||||||||||
Less: preferred stock | (110,927 | ) | (110,927 | ) | (110,927 | ) | (110,927 | ) | (110,927 | ) | ||||||||||
Common equity | $ | 1,128,569 | $ | 1,113,300 | $ | 1,105,682 | $ | 1,105,693 | $ | 1,077,227 | ||||||||||
Less: intangible assets | (213,307 | ) | (213,604 | ) | (213,925 | ) | (214,246 | ) | (214,594 | ) | ||||||||||
Tangible common equity | $ | 915,262 | $ | 899,696 | $ | 891,757 | $ | 891,447 | $ | 862,633 | ||||||||||
Total assets | $ | 9,639,603 | $ | 9,723,731 | $ | 9,853,964 | $ | 9,855,603 | $ | 9,678,885 | ||||||||||
Less: intangible assets | (213,307 | ) | (213,604 | ) | (213,925 | ) | (214,246 | ) | (214,594 | ) | ||||||||||
Tangible assets | $ | 9,426,296 | $ | 9,510,127 | $ | 9,640,039 | $ | 9,641,357 | $ | 9,464,291 | ||||||||||
Common shares outstanding | 38,368,217 | 38,365,069 | 38,333,053 | 38,519,770 | 38,621,970 | |||||||||||||||
Common equity ratio (GAAP) | 11.71 | % | 11.45 | % | 11.22 | % | 11.22 | % | 11.13 | % | ||||||||||
Tangible common equity ratio (non-GAAP)(7) | 9.71 | 9.46 | 9.25 | 9.25 | 9.11 | |||||||||||||||
Regulatory capital ratios (Bancorp): | ||||||||||||||||||||
Leverage ratio | 11.10 | % | 10.97 | % | 10.73 | % | 10.86 | % | 10.86 | % | ||||||||||
Common equity Tier 1 risk-based ratio | 11.07 | 10.90 | 10.70 | 10.62 | 10.64 | |||||||||||||||
Risk-based Tier 1 capital ratio | 12.42 | 12.25 | 12.03 | 11.95 | 11.98 | |||||||||||||||
Risk-based total capital ratio | 14.29 | 14.10 | 13.88 | 13.77 | 13.90 | |||||||||||||||
Regulatory capital ratios (Bank): | ||||||||||||||||||||
Leverage ratio | 11.43 | % | 11.29 | % | 11.10 | % | 11.20 | % | 11.23 | % | ||||||||||
Common equity Tier 1 risk-based ratio | 12.79 | 12.60 | 12.43 | 12.31 | 12.38 | |||||||||||||||
Risk-based Tier 1 capital ratio | 12.79 | 12.60 | 12.43 | 12.31 | 12.38 | |||||||||||||||
Risk-based total capital ratio | 13.77 | 13.58 | 13.41 | 13.28 | 13.43 | |||||||||||||||
Book value per share (GAAP) | $ | 29.41 | $ | 29.02 | $ | 28.84 | $ | 28.70 | $ | 27.89 | ||||||||||
Tangible book value per share (non-GAAP)(8) | 23.85 | 23.45 | 23.26 | 23.14 | 22.34 | |||||||||||||||
Net Loan Charge-offs (Recoveries): | ||||||||||||||||||||
Net loan charge-offs (recoveries): | ||||||||||||||||||||
Charge-offs | $ | 3,559 | $ | 3,595 | $ | 3,185 | $ | 8,960 | $ | 2,487 | ||||||||||
Recoveries | (53 | ) | (324 | ) | (23 | ) | - | (8 | ) | |||||||||||
Net loan charge-offs | $ | 3,506 | $ | 3,271 | $ | 3,162 | $ | 8,960 | $ | 2,479 | ||||||||||
Net loan charge-offs as a % of average loans receivable (annualized) | 0.17 | % | 0.16 | % | 0.15 | % | 0.43 | % | 0.12 | % | ||||||||||
Asset Quality | ||||||||||||||||||||
Nonaccrual loans | $ | 51,300 | $ | 46,026 | $ | 47,438 | $ | 52,524 | $ | 56,059 | ||||||||||
Other real estate owned | - | - | - | - | - | |||||||||||||||
Nonperforming assets | $ | 51,300 | $ | 46,026 | $ | 47,438 | $ | 52,524 | $ | 56,059 | ||||||||||
Allowance for credit losses - loans ("ACL") | $ | 82,494 | $ | 82,077 | $ | 82,869 | $ | 81,974 | $ | 88,230 | ||||||||||
Loans receivable | 8,111,976 | 8,157,903 | 8,297,957 | 8,345,145 | 8,181,109 | |||||||||||||||
Nonaccrual loans as a % of loans receivable | 0.63 | % | 0.56 | % | 0.57 | % | 0.63 | % | 0.69 | % | ||||||||||
Nonperforming assets as a % of total assets | 0.53 | 0.47 | 0.48 | 0.53 | 0.58 | |||||||||||||||
ACL as a % of loans receivable | 1.02 | 1.01 | 1.00 | 0.98 | 1.08 | |||||||||||||||
ACL as a % of nonaccrual loans | 160.8 | 178.3 | 174.7 | 156.1 | 157.4 | |||||||||||||||
_________________________ | ||||||||||||||||||||
(7)Tangible common equity divided by tangible assets. | ||||||||||||||||||||
(8)Tangible common equity divided by common shares outstanding at period-end. | ||||||||||||||||||||
CONNECTONE BANCORP, INC. | |||||||||||||||||||||||||||||
NET INTEREST MARGIN ANALYSIS | |||||||||||||||||||||||||||||
(dollars in thousands) | |||||||||||||||||||||||||||||
For the Quarter Ended | |||||||||||||||||||||||||||||
September 30, 2024 | June 30, 2024 | September 30, 2023 | |||||||||||||||||||||||||||
Average | Average | Average | |||||||||||||||||||||||||||
Interest-earning assets: | Balance | Interest | Rate(7) | Balance | Interest | Rate(7) | Balance | Interest | Rate(7) | ||||||||||||||||||||
Investment securities(1) (2) | $ | 736,946 | $ | 6,157 | 3.32 | % | $ | 739,591 | $ | 6,102 | 3.32 | % | $ | 723,408 | $ | 5,566 | 3.05 | % | |||||||||||
Loans receivable and loans held-for-sale(2) (3) (4) | 8,123,416 | 119,805 | 5.87 | 8,212,825 | 120,663 | 5.91 | 8,169,310 | 115,954 | 5.63 | ||||||||||||||||||||
Federal funds sold and interest- | |||||||||||||||||||||||||||||
bearing deposits with banks | 304,009 | 4,056 | 5.31 | 212,811 | 2,841 | 5.37 | 158,155 | 2,110 | 5.29 | ||||||||||||||||||||
Restricted investment in bank stock | 41,667 | 1,048 | 10.01 | 44,823 | 1,217 | 10.92 | 38,558 | 907 | 9.33 | ||||||||||||||||||||
Total interest-earning assets | 9,206,038 | 131,066 | 5.66 | 9,210,050 | 130,823 | 5.71 | 9,089,431 | 124,537 | 5.44 | ||||||||||||||||||||
Allowance for credit losses | (83,355 | ) | (84,681 | ) | (89,966 | ) | |||||||||||||||||||||||
Noninterest-earning assets | 620,170 | 620,484 | 626,160 | ||||||||||||||||||||||||||
Total assets | $ | 9,742,853 | $ | 9,745,853 | $ | 9,625,625 | |||||||||||||||||||||||
Interest-bearing liabilities: | |||||||||||||||||||||||||||||
Time deposits | $ | 2,625,329 | 30,245 | 4.58 | $ | 2,587,706 | 28,898 | 4.49 | $ | 2,606,122 | 25,437 | 3.87 | |||||||||||||||||
Other interest-bearing deposits | 3,747,427 | 33,540 | 3.56 | 3,721,167 | 33,188 | 3.59 | 3,723,561 | 30,606 | 3.26 | ||||||||||||||||||||
Total interest-bearing deposits | 6,372,756 | 63,785 | 3.98 | 6,308,873 | 62,086 | 3.96 | 6,329,683 | 56,043 | 3.51 | ||||||||||||||||||||
Borrowings | 717,586 | 4,239 | 2.35 | 787,256 | 5,150 | 2.63 | 651,112 | 3,950 | 2.41 | ||||||||||||||||||||
Subordinated debentures, net | 79,735 | 1,312 | 6.55 | 79,609 | 1,311 | 6.62 | 79,230 | 1,312 | 6.57 | ||||||||||||||||||||
Finance lease | 1,349 | 20 | 5.90 | 1,416 | 21 | 5.96 | 1,603 | 24 | 5.94 | ||||||||||||||||||||
Total interest-bearing liabilities | 7,171,426 | 69,356 | 3.85 | 7,177,154 | 68,568 | 3.84 | 7,061,628 | 61,329 | 3.45 | ||||||||||||||||||||
Noninterest-bearing demand deposits | 1,259,912 | 1,256,251 | 1,275,325 | ||||||||||||||||||||||||||
Other liabilities | 76,791 | 91,827 | 86,025 | ||||||||||||||||||||||||||
Total noninterest-bearing liabilities | 1,336,703 | 1,348,078 | 1,361,350 | ||||||||||||||||||||||||||
Stockholders' equity | 1,234,724 | 1,220,621 | 1,202,647 | ||||||||||||||||||||||||||
Total liabilities and stockholders' equity | $ | 9,742,853 | $ | 9,745,853 | $ | 9,625,625 | |||||||||||||||||||||||
Net interest income (tax equivalent basis) | 61,710 | 62,255 | 63,208 | ||||||||||||||||||||||||||
Net interest spread(5) | 1.82 | % | 1.87 | % | 1.99 | % | |||||||||||||||||||||||
Net interest margin(6) | 2.67 | % | 2.72 | % | 2.76 | % | |||||||||||||||||||||||
Tax equivalent adjustment | (823 | ) | (816 | ) | (851 | ) | |||||||||||||||||||||||
Net interest income | $ | 60,887 | $ | 61,439 | $ | 62,357 | |||||||||||||||||||||||
_________________________ | |||||||||||||||||||||||||||||
(1)Average balances are calculated on amortized cost. | |||||||||||||||||||||||||||||
(2)Interest income is presented on a tax equivalent basis using | |||||||||||||||||||||||||||||
(3)Includes loan fee income. | |||||||||||||||||||||||||||||
(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. | |||||||||||||||||||||||||||||
FAQ
What was ConnectOne Bancorp's (CNOB) earnings per share in Q3 2024?
What dividend did ConnectOne Bancorp (CNOB) declare for Q3 2024?