Connectone Bancorp, Inc. Reports Fourth Quarter and Full-Year 2024 Results; Declares Common and Preferred Dividends
ConnectOne Bancorp (CNOB) reported Q4 2024 net income of $18.9 million, up from $15.7 million in Q3 2024 and $17.8 million in Q4 2023. Diluted EPS reached $0.49, compared to $0.41 in Q3 2024 and $0.46 in Q4 2023.
The bank showed strong performance with a 2.0% quarterly loan portfolio growth and 3.2% core deposits growth. The net interest margin improved by nearly 20 basis points, benefiting from reduced deposit costs. The company maintained stable credit quality and increased tangible book value.
Full-year 2024 net income was $67.8 million ($1.76 per share), down from $81.0 million ($2.07 per share) in 2023. The Board declared a quarterly cash dividend of $0.18 per common share and $0.328125 per preferred share depositary share.
The company's planned merger with The First of Long Island is progressing as expected, with closing anticipated in Q2 2025.
ConnectOne Bancorp (CNOB) ha riportato un utile netto per il Q4 2024 di 18,9 milioni di dollari, in aumento rispetto ai 15,7 milioni di dollari del Q3 2024 e ai 17,8 milioni di dollari del Q4 2023. L'utile per azione diluito ha raggiunto 0,49 dollari, rispetto ai 0,41 dollari del Q3 2024 e ai 0,46 dollari del Q4 2023.
La banca ha mostrato una performance forte con una crescita del 2,0% del portafoglio prestiti trimestrale e una crescita del 3,2% dei depositi core. Il margine di interesse netto è migliorato di quasi 20 punti base, grazie alla riduzione dei costi dei depositi. L'azienda ha mantenuto una qualità del credito stabile e ha aumentato il valore contabile tangibile.
Il reddito netto per l'intero anno 2024 è stato di 67,8 milioni di dollari (1,76 dollari per azione), in calo rispetto agli 81,0 milioni di dollari (2,07 dollari per azione) del 2023. Il Consiglio ha dichiarato un dividendo in contante trimestrale di 0,18 dollari per azione comune e 0,328125 dollari per azione di deposito di azioni privilegiate.
La fusione pianificata dell'azienda con The First of Long Island sta proseguendo come previsto, con la chiusura attesa nel Q2 2025.
ConnectOne Bancorp (CNOB) reportó un ingreso neto de 18,9 millones de dólares en el Q4 2024, en comparación con los 15,7 millones de dólares en el Q3 2024 y los 17,8 millones de dólares en el Q4 2023. Las ganancias por acción diluidas alcanzaron los 0,49 dólares, en comparación con los 0,41 dólares en el Q3 2024 y los 0,46 dólares en el Q4 2023.
El banco mostró un rendimiento fuerte con un crecimiento del 2,0% en la cartera de préstamos trimestrales y un crecimiento del 3,2% en los depósitos básicos. El margen de interés neto mejoró en casi 20 puntos básicos, beneficiándose de la reducción de costos de depósitos. La empresa mantuvo una calidad crediticia estable y aumentó el valor contable tangible.
El ingreso neto del año completo 2024 fue de 67,8 millones de dólares (1,76 dólares por acción), en comparación con los 81,0 millones de dólares (2,07 dólares por acción) en 2023. La Junta declaró un dividendo en efectivo trimestral de 0,18 dólares por acción ordinaria y 0,328125 dólares por acción preferente de depósito.
La fusión planeada de la compañía con The First of Long Island avanza como se esperaba, con el cierre anticipado para el Q2 2025.
ConnectOne Bancorp (CNOB)는 2024년 4분기에 1,890만 달러의 순이익을 보고했으며, 이는 2024년 3분기의 1,570만 달러 및 2023년 4분기의 1,780만 달러에서 증가한 수치입니다. 희석 주당 순이익은 0.49달러에 달하며, 이는 2024년 3분기 0.41달러 및 2023년 4분기 0.46달러와 비교됩니다.
은행은 분기별 대출 포트폴리오가 2.0% 성장하고, 핵심 예금이 3.2% 성장하는 등 강한 실적을 보여주었습니다. 순이자 마진은 예금 비용 절감의 혜택으로 거의 20bp 개선되었습니다. 회사는 안정적인 신용 품질을 유지했으며, 유형 자산 가치를 증가시켰습니다.
2024년 전체 연간 순이익은 6,780만 달러(주당 1.76달러)로, 2023년의 8,100만 달러(주당 2.07달러)에서 감소했습니다. 이사회는 보통주 한 주당 0.18달러, 우선주 예탁주식 한 주당 0.328125달러의 분기 현금 배당금을 선언했습니다.
회사가 계획한 The First of Long Island와의 합병은 예상대로 진행 중이며, 2025년 2분기 내 마감이 예상됩니다.
ConnectOne Bancorp (CNOB) a rapporté un bénéfice net de 18,9 millions de dollars pour le 4e trimestre 2024, en hausse par rapport à 15,7 millions de dollars au 3e trimestre 2024 et 17,8 millions de dollars au 4e trimestre 2023. Le bénéfice par action dilué a atteint 0,49 dollar, contre 0,41 dollar au 3e trimestre 2024 et 0,46 dollar au 4e trimestre 2023.
La banque a affiché de solides performances avec une croissance de 2,0 % de son portefeuille de prêts trimestriels et une croissance de 3,2 % des dépôts de base. La marge d'intérêt nette s'est améliorée de près de 20 points de base, bénéficiant d'une réduction des coûts des dépôts. L'entreprise a maintenu une qualité de crédit stable et a accru sa valeur comptable tangible.
Le bénéfice net pour l'année complète 2024 s'est élevé à 67,8 millions de dollars (1,76 dollar par action), en baisse par rapport à 81,0 millions de dollars (2,07 dollars par action) en 2023. Le Conseil a déclaré un dividende en espèces trimestriel de 0,18 dollar par action ordinaire et 0,328125 dollar par action préférentielle de dépôt.
La fusion prévue de l'entreprise avec The First of Long Island progresse comme prévu, avec une clôture anticipée au 2e trimestre 2025.
ConnectOne Bancorp (CNOB) berichtete für das 4. Quartal 2024 ein Nettogewinn von 18,9 Millionen US-Dollar, ein Anstieg im Vergleich zu 15,7 Millionen US-Dollar im 3. Quartal 2024 und 17,8 Millionen US-Dollar im 4. Quartal 2023. Der verwässerte Gewinn pro Aktie betrug 0,49 US-Dollar, verglichen mit 0,41 US-Dollar im 3. Quartal 2024 und 0,46 US-Dollar im 4. Quartal 2023.
Die Bank zeigte eine starke Leistung mit einem Wachstum des Kreditportfolios von 2,0% im Quartalsvergleich und einem Wachstum der Kerneinlagen von 3,2%. Die Nettomarge verbesserte sich um nahezu 20 Basispunkte, was auf gesunkene Einlagekosten zurückzuführen ist. Das Unternehmen hielt die Kreditqualität stabil und erhöhte den buchhalterischen Wert.
Der Nettogewinn für das Gesamtjahr 2024 betrug 67,8 Millionen US-Dollar (1,76 US-Dollar pro Aktie) und sank im Vergleich zu 81,0 Millionen US-Dollar (2,07 US-Dollar pro Aktie) im Jahr 2023. Der Vorstand erklärte eine vierteljährliche Bardividende von 0,18 US-Dollar pro Stammaktie und 0,328125 US-Dollar pro Vorzugsaktien-Depotaktie.
Die geplante Fusion des Unternehmens mit The First of Long Island verläuft wie erwartet, der Abschluss wird im 2. Quartal 2025 erwartet.
- Q4 2024 net income increased 20.5% quarter-over-quarter to $18.9 million
- Loan portfolio grew 2.0% and core deposits increased 3.2% in Q4
- Net interest margin improved by 20 basis points
- Noninterest-bearing demand deposits increased 3.6% quarterly
- Full-year 2024 net income decreased to $67.8 million from $81.0 million in 2023
- Nonperforming assets increased to 0.58% of total assets from 0.53% in Q3 2024
- Criticized and classified loans increased to 2.66% from 2.23% in Q3 2024
Insights
ConnectOne Bancorp's Q4 2024 performance demonstrates robust financial management and strategic execution. The bank's operating net income of
The bank's asset quality metrics remain solid, with the allowance for credit losses at
The pending merger with First of Long Island positions ConnectOne for significant market expansion in the strategically important Long Island market. This consolidation should create meaningful operational synergies and enhance the bank's competitive position in the New York Metro area.
Looking ahead, the projection of net interest margin exceeding
ENGLEWOOD CLIFFS, N.J., Jan. 30, 2025 (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, as set forth in the reconciliation of GAAP earnings to operating earnings included in the supplemental table attached hereto, was
“I’m extremely pleased with ConnectOne’s fourth quarter 2024 financial results highlighted by a
“As we move into 2025, we are experiencing strong operating momentum bolstered by improving industry fundamentals, favorable economic conditions, and a potentially more supportive regulatory environment. Importantly, the proposed merger with The First of Long Island Corporation is moving forward as planned. We’re well along in the merger process and anticipate the transaction to close in the second quarter of 2025.” Mr. Sorrentino added, “The strategic rationale behind this financially attractive transaction remains highly compelling, which will meaningfully enhance ConnectOne's presence on Long Island and further our position as a premier New York Metro community bank. We are equally excited about the opportunity to serve The First of Long Island’s clients and to leverage the expertise of its team, creating a significantly enhanced platform for sustained growth at ConnectOne.”
Mr. Sorrentino concluded “Looking ahead, we remain focused and committed to our client-first culture and relationship banking model and are well-positioned to grow and strengthen our valuable franchise.”
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 fourth quarter of 2024 was
Fully taxable equivalent net interest income for the fourth quarter of 2024 increased by
Noninterest income was
Noninterest expenses were
The
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.
Fourth Quarter 2024 Results Conference Call
Management will also host a conference call and audio webcast at 10:00 a.m. ET on January 30, 2025 to review the Company's financial performance and operating results. The conference call dial-in number is 1 (646) 307-1963, access code 1691400. 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, January 30, 2025 and ending on Thursday, February 6, 2025 by dialing 1 (609) 800-9909, access code 1691400. 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) | ||||||||
| December 31, | December 31, | |||||||
| 2024 | 2023 | |||||||
| (unaudited) | ||||||||
| ASSETS | ||||||||
| Cash and due from banks | $ | 57,816 | $ | 61,421 | ||||
| Interest-bearing deposits with banks | 298,672 | 181,293 | ||||||
| Cash and cash equivalents | 356,488 | 242,714 | ||||||
| Investment securities | 612,847 | 617,162 | ||||||
| Equity securities | 20,092 | 18,564 | ||||||
| Loans held-for-sale | 743 | - | ||||||
| Loans receivable | 8,274,810 | 8,345,145 | ||||||
| Less: Allowance for credit losses - loans | 82,685 | 81,974 | ||||||
| Net loans receivable | 8,192,125 | 8,263,171 | ||||||
| Investment in restricted stock, at cost | 40,449 | 51,457 | ||||||
| Bank premises and equipment, net | 28,447 | 30,779 | ||||||
| Accrued interest receivable | 45,498 | 49,108 | ||||||
| Bank owned life insurance | 243,672 | 237,644 | ||||||
| Right of use operating lease assets | 14,489 | 12,007 | ||||||
| Goodwill | 208,372 | 208,372 | ||||||
| Core deposit intangibles | 4,639 | 5,874 | ||||||
| Other assets | 111,739 | 118,751 | ||||||
| Total assets | $ | 9,879,600 | $ | 9,855,603 | ||||
| LIABILITIES | ||||||||
| Deposits: | ||||||||
| Noninterest-bearing | $ | 1,422,044 | $ | 1,259,364 | ||||
| Interest-bearing | 6,398,070 | 6,276,838 | ||||||
| Total deposits | 7,820,114 | 7,536,202 | ||||||
| Borrowings | 688,064 | 933,579 | ||||||
| Subordinated debentures, net | 79,944 | 79,439 | ||||||
| Operating lease liabilities | 15,498 | 13,171 | ||||||
| Other liabilities | 34,276 | 76,592 | ||||||
| Total liabilities | 8,637,896 | 8,638,983 | ||||||
| COMMITMENTS AND CONTINGENCIES | ||||||||
| STOCKHOLDERS' EQUITY | ||||||||
| Preferred stock | 110,927 | 110,927 | ||||||
| Common stock | 586,946 | 586,946 | ||||||
| Additional paid-in capital | 36,347 | 33,182 | ||||||
| Retained earnings | 631,446 | 590,970 | ||||||
| Treasury stock | (76,116 | ) | (70,296 | ) | ||||
| Accumulated other comprehensive loss | (47,846 | ) | (35,109 | ) | ||||
| Total stockholders' equity | 1,241,704 | 1,216,620 | ||||||
| Total liabilities and stockholders' equity | $ | 9,879,600 | $ | 9,855,603 | ||||
| CONNECTONE BANCORP, INC. AND SUBSIDIARIES | ||||||||||||||
| CONSOLIDATED STATEMENTS OF INCOME | ||||||||||||||
| (dollars in thousands, except for per share data) | ||||||||||||||
| Three Months Ended | Year Ended | |||||||||||||
| 12/31/24 | 12/31/23 | 12/31/24 | 12/31/23 | |||||||||||
| Interest income | ||||||||||||||
| Interest and fees on loans | $ | 118,346 | $ | 120,636 | $ | 477,859 | $ | 453,992 | ||||||
| Interest and dividends on investment securities: | ||||||||||||||
| Taxable | 4,804 | 4,280 | 18,561 | 16,666 | ||||||||||
| Tax-exempt | 1,109 | 1,166 | 4,503 | 4,641 | ||||||||||
| Dividends | 959 | 912 | 4,349 | 3,662 | ||||||||||
| Interest on federal funds sold and other short-term investments | 2,815 | 1,963 | 12,617 | 11,104 | ||||||||||
| Total interest income | 128,033 | 128,957 | 517,889 | 490,065 | ||||||||||
| Interest expense | ||||||||||||||
| Deposits | 58,568 | 59,332 | 244,846 | 206,176 | ||||||||||
| Borrowings | 4,754 | 7,803 | 25,706 | 28,783 | ||||||||||
| Total interest expense | 63,322 | 67,135 | 270,552 | 234,959 | ||||||||||
| Net interest income | 64,711 | 61,822 | 247,337 | 255,106 | ||||||||||
| Provision for credit losses | 3,500 | 2,700 | 13,800 | 8,200 | ||||||||||
| Net interest income after provision for credit losses | 61,211 | 59,122 | 233,537 | 246,906 | ||||||||||
| Noninterest income | ||||||||||||||
| Deposit, loan and other income | 1,798 | 1,545 | 6,861 | 6,098 | ||||||||||
| Income on bank owned life insurance | 1,656 | 1,635 | 7,142 | 6,316 | ||||||||||
| Net gains on sale of loans held-for-sale | 597 | 472 | 2,723 | 1,704 | ||||||||||
| Net losses (gains) on equity securities | (307 | ) | 557 | 2 | (117 | ) | ||||||||
| Total noninterest income | 3,744 | 4,209 | 16,728 | 14,001 | ||||||||||
| Noninterest expenses | ||||||||||||||
| Salaries and employee benefits | 22,244 | 22,010 | 90,053 | 88,223 | ||||||||||
| Occupancy and equipment | 2,818 | 2,708 | 11,615 | 10,884 | ||||||||||
| FDIC insurance | 1,800 | 3,900 | 7,200 | 8,365 | ||||||||||
| Professional and consulting | 2,449 | 1,587 | 8,447 | 7,547 | ||||||||||
| Marketing and advertising | 495 | 323 | 2,420 | 1,965 | ||||||||||
| Information technology and communications | 4,523 | 4,148 | 17,574 | 14,340 | ||||||||||
| Merger expenses | 863 | - | 1,605 | - | ||||||||||
| Branch closing expenses | 477 | - | 477 | - | ||||||||||
| Amortization of core deposit intangibles | 296 | 348 | 1,235 | 1,438 | ||||||||||
| Other expenses | 2,533 | 2,821 | 11,172 | 11,187 | ||||||||||
| Total noninterest expenses | 38,498 | 37,845 | 151,798 | 143,949 | ||||||||||
| Income before income tax expense | 26,457 | 25,486 | 98,467 | 116,958 | ||||||||||
| Income tax expense | 6,086 | 6,213 | 24,674 | 29,955 | ||||||||||
| Net income | 20,371 | 19,273 | 73,793 | 87,003 | ||||||||||
| Preferred dividends | 1,509 | 1,509 | 6,036 | 6,036 | ||||||||||
| Net income available to common stockholders | $ | 18,862 | $ | 17,764 | $ | 67,757 | $ | 80,967 | ||||||
| Earnings per common share: | ||||||||||||||
| Basic | $ | 0.49 | $ | 0.46 | $ | 1.77 | $ | 2.08 | ||||||
| Diluted | 0.49 | 0.46 | 1.76 | 2.07 | ||||||||||
| 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 | |||||||||||||||||||||
| Dec. 31, | Sept. 30, | Jun. 30, | Mar. 31, | Dec. 31, | |||||||||||||||||
| 2024 | 2024 | 2024 | 2024 | 2023 | |||||||||||||||||
| Selected Financial Data | (dollars in thousands) | ||||||||||||||||||||
| Total assets | $ | 9,879,600 | $ | 9,639,603 | $ | 9,723,731 | $ | 9,853,964 | $ | 9,855,603 | |||||||||||
| Loans receivable: | |||||||||||||||||||||
| Commercial | $ | 1,522,308 | $ | 1,505,743 | $ | 1,491,079 | $ | 1,561,063 | $ | 1,564,768 | |||||||||||
| Commercial real estate | 3,384,319 | 3,261,160 | 3,274,941 | 3,333,488 | 3,342,603 | ||||||||||||||||
| Multifamily | 2,506,782 | 2,482,258 | 2,499,581 | 2,507,893 | 2,566,904 | ||||||||||||||||
| Commercial construction | 616,246 | 616,087 | 639,168 | 646,593 | 620,496 | ||||||||||||||||
| Residential | 249,691 | 250,249 | 256,786 | 254,214 | 256,041 | ||||||||||||||||
| Consumer | 1,136 | 835 | 945 | 850 | 1,029 | ||||||||||||||||
| Gross loans | 8,280,482 | 8,116,332 | 8,162,500 | 8,304,101 | 8,351,841 | ||||||||||||||||
| Net deferred loan fees | (5,672 | ) | (4,356 | ) | (4,597 | ) | (6,144 | ) | (6,696 | ) | |||||||||||
| Loans receivable | 8,274,810 | 8,111,976 | 8,157,903 | 8,297,957 | 8,345,145 | ||||||||||||||||
| Loans held-for-sale | 743 | - | 435 | - | - | ||||||||||||||||
| Total loans | $ | 8,275,553 | $ | 8,111,976 | $ | 8,158,338 | $ | 8,297,957 | $ | 8,345,145 | |||||||||||
| Investment and equity securities | $ | 632,939 | $ | 667,112 | $ | 640,322 | $ | 638,854 | $ | 635,726 | |||||||||||
| Goodwill and other intangible assets | 213,011 | 213,307 | 213,604 | 213,925 | 214,246 | ||||||||||||||||
| Deposits: | |||||||||||||||||||||
| Noninterest-bearing demand | $ | 1,422,044 | $ | 1,262,568 | $ | 1,268,882 | $ | 1,290,523 | $ | 1,259,364 | |||||||||||
| Time deposits | 2,557,200 | 2,614,187 | 2,593,165 | 2,623,391 | 2,531,371 | ||||||||||||||||
| Other interest-bearing deposits | 3,840,870 | 3,647,350 | 3,713,967 | 3,674,740 | 3,745,467 | ||||||||||||||||
| Total deposits | $ | 7,820,114 | $ | 7,524,105 | $ | 7,576,014 | $ | 7,588,654 | $ | 7,536,202 | |||||||||||
| Borrowings | $ | 688,064 | $ | 742,133 | $ | 756,144 | $ | 877,568 | $ | 933,579 | |||||||||||
| Subordinated debentures (net of debt issuance costs) | 79,944 | 79,818 | 79,692 | 79,566 | 79,439 | ||||||||||||||||
| Total stockholders' equity | 1,241,704 | 1,239,496 | 1,224,227 | 1,216,609 | 1,216,620 | ||||||||||||||||
| Quarterly Average Balances | |||||||||||||||||||||
| Total assets | $ | 9,653,446 | $ | 9,742,853 | $ | 9,745,853 | $ | 9,860,753 | $ | 9,690,746 | |||||||||||
| Loans receivable: | |||||||||||||||||||||
| Commercial | $ | 1,487,850 | $ | 1,485,777 | $ | 1,517,446 | $ | 1,552,360 | $ | 1,510,634 | |||||||||||
| Commercial real estate (including multifamily) | 5,733,188 | 5,752,467 | 5,789,498 | 5,890,853 | 5,874,854 | ||||||||||||||||
| Commercial construction | 631,022 | 628,740 | 652,227 | 637,993 | 630,468 | ||||||||||||||||
| Residential | 250,589 | 252,975 | 254,284 | 252,965 | 253,200 | ||||||||||||||||
| Consumer | 5,204 | 7,887 | 5,155 | 5,091 | 6,006 | ||||||||||||||||
| Gross loans | 8,107,853 | 8,127,846 | 8,218,610 | 8,339,262 | 8,275,162 | ||||||||||||||||
| Net deferred loan fees | (4,727 | ) | (4,513 | ) | (5,954 | ) | (6,533 | ) | (6,894 | ) | |||||||||||
| Loans receivable | 8,103,126 | 8,123,333 | 8,212,656 | 8,332,729 | 8,268,268 | ||||||||||||||||
| Loans held-for-sale | 498 | 83 | 169 | 99 | 31 | ||||||||||||||||
| Total loans | $ | 8,103,624 | $ | 8,123,416 | $ | 8,212,825 | $ | 8,332,828 | $ | 8,268,299 | |||||||||||
| Investment and equity securities | $ | 653,988 | $ | 650,897 | $ | 637,551 | $ | 633,270 | $ | 602,287 | |||||||||||
| Goodwill and other intangible assets | 213,205 | 213,502 | 213,813 | 214,133 | 214,472 | ||||||||||||||||
| Deposits: | |||||||||||||||||||||
| Noninterest-bearing demand | $ | 1,304,699 | $ | 1,259,912 | $ | 1,256,251 | $ | 1,254,201 | $ | 1,248,132 | |||||||||||
| Time deposits | 2,478,163 | 2,625,329 | 2,587,706 | 2,567,767 | 2,495,091 | ||||||||||||||||
| Other interest-bearing deposits | 3,838,575 | 3,747,427 | 3,721,167 | 3,696,374 | 3,747,093 | ||||||||||||||||
| Total deposits | $ | 7,621,437 | $ | 7,632,668 | $ | 7,565,124 | $ | 7,518,342 | $ | 7,490,316 | |||||||||||
| Borrowings | $ | 648,300 | $ | 717,586 | $ | 787,256 | $ | 947,003 | $ | 823,123 | |||||||||||
| Subordinated debentures (net of debt issuance costs) | 79,862 | 79,735 | 79,609 | 79,483 | 79,356 | ||||||||||||||||
| Total stockholders' equity | 1,241,738 | 1,234,724 | 1,220,621 | 1,220,818 | 1,198,389 | ||||||||||||||||
| Three Months Ended | |||||||||||||||||||||
| Dec. 31, | Sept. 30, | Jun. 30, | Mar. 31, | Dec. 31, | |||||||||||||||||
| 2024 | 2024 | 2024 | 2024 | 2023 | |||||||||||||||||
| (dollars in thousands, except for per share data) | |||||||||||||||||||||
| Net interest income | $ | 64,711 | $ | 60,887 | $ | 61,439 | $ | 60,300 | $ | 61,822 | |||||||||||
| Provision for credit losses | 3,500 | 3,800 | 2,500 | 4,000 | 2,700 | ||||||||||||||||
| Net interest income after provision for credit losses | 61,211 | 57,087 | 58,939 | 56,300 | 59,122 | ||||||||||||||||
| Noninterest income | |||||||||||||||||||||
| Deposit, loan and other income | 1,798 | 1,817 | 1,654 | 1,592 | 1,545 | ||||||||||||||||
| Income on bank owned life insurance | 1,656 | 2,145 | 1,677 | 1,664 | 1,635 | ||||||||||||||||
| Net gains on sale of loans held-for-sale | 597 | 343 | 1,277 | 506 | 472 | ||||||||||||||||
| Net (losses) gains on equity securities | (307 | ) | 432 | (209 | ) | 86 | 557 | ||||||||||||||
| Total noninterest income | 3,744 | 4,737 | 4,399 | 3,848 | 4,209 | ||||||||||||||||
| Noninterest expenses | |||||||||||||||||||||
| Salaries and employee benefits | 22,244 | 22,957 | 22,721 | 22,131 | 22,010 | ||||||||||||||||
| Occupancy and equipment | 2,818 | 2,889 | 2,899 | 3,009 | 2,708 | ||||||||||||||||
| FDIC insurance | 1,800 | 1,800 | 1,800 | 1,800 | 3,900 | ||||||||||||||||
| Professional and consulting | 2,449 | 2,147 | 1,923 | 1,928 | 1,587 | ||||||||||||||||
| Marketing and advertising | 495 | 635 | 613 | 677 | 323 | ||||||||||||||||
| Information technology and communications | 4,523 | 4,464 | 4,198 | 4,389 | 4,148 | ||||||||||||||||
| Merger expenses | 863 | 742 | - | - | - | ||||||||||||||||
| Branch closing expenses | 477 | - | - | - | - | ||||||||||||||||
| Amortization of core deposit intangible | 296 | 297 | 321 | 321 | 348 | ||||||||||||||||
| Other expenses | 2,533 | 2,710 | 3,119 | 2,810 | 2,821 | ||||||||||||||||
| Total noninterest expenses | 38,498 | 38,641 | 37,594 | 37,065 | 37,845 | ||||||||||||||||
| Income before income tax expense | 26,457 | 23,183 | 25,744 | 23,083 | 25,486 | ||||||||||||||||
| Income tax expense | 6,086 | 6,022 | 6,688 | 5,878 | 6,213 | ||||||||||||||||
| Net income | 20,371 | 17,161 | 19,056 | 17,205 | 19,273 | ||||||||||||||||
| Preferred dividends | 1,509 | 1,509 | 1,509 | 1,509 | 1,509 | ||||||||||||||||
| Net income available to common stockholders | $ | 18,862 | $ | 15,652 | $ | 17,547 | $ | 15,696 | $ | 17,764 | |||||||||||
| Weighted average diluted common shares outstanding | 38,519,581 | 38,525,484 | 38,448,594 | 38,511,747 | 38,651,391 | ||||||||||||||||
| Diluted EPS | $ | 0.49 | $ | 0.41 | $ | 0.46 | $ | 0.41 | $ | 0.46 | |||||||||||
| Reconciliation of GAAP Net Income to Operating Net Income: | |||||||||||||||||||||
| Net income | $ | 20,371 | $ | 17,161 | $ | 19,056 | $ | 17,205 | $ | 19,273 | |||||||||||
| FDIC special assessment | - | - | - | - | 2,100 | ||||||||||||||||
| Merger expenses | 863 | 742 | - | - | - | ||||||||||||||||
| Branch closing expenses | 477 | - | - | - | - | ||||||||||||||||
| Amortization of core deposit intangibles | 296 | 297 | 321 | 321 | 348 | ||||||||||||||||
| Net losses (gains) on equity securities | 307 | (432 | ) | 209 | (86 | ) | (557 | ) | |||||||||||||
| Tax impact of adjustments | (585 | ) | (171 | ) | (149 | ) | (66 | ) | (569 | ) | |||||||||||
| Operating net income | $ | 21,729 | $ | 17,597 | $ | 19,437 | $ | 17,374 | $ | 20,595 | |||||||||||
| Preferred dividends | 1,509 | 1,509 | 1,509 | 1,509 | 1,509 | ||||||||||||||||
| Operating net income available to common stockholders | $ | 20,220 | $ | 16,088 | $ | 17,928 | $ | 15,865 | $ | 19,086 | |||||||||||
| Operating diluted EPS (non-GAAP) (1) | $ | 0.52 | $ | 0.42 | $ | 0.47 | $ | 0.41 | $ | 0.49 | |||||||||||
| Return on Assets Measures | |||||||||||||||||||||
| Average assets | $ | 9,653,446 | $ | 9,742,853 | $ | 9,745,853 | $ | 9,860,753 | $ | 9,690,746 | |||||||||||
| Return on avg. assets | 0.84 | % | 0.70 | % | 0.79 | % | 0.70 | % | 0.79 | % | |||||||||||
| Operating return on avg. assets (non-GAAP) (2) | 0.90 | 0.72 | 0.80 | 0.71 | 0.84 | ||||||||||||||||
| (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 | |||||||||||||||||||||
| Dec. 31, | Sept. 30, | Jun. 30, | Mar. 31, | Dec. 31, | |||||||||||||||||
| 2024 | 2024 | 2024 | 2024 | 2023 | |||||||||||||||||
| Return on Equity Measures | (dollars in thousands) | ||||||||||||||||||||
| Average stockholders' equity | $ | 1,241,738 | $ | 1,234,724 | $ | 1,220,621 | $ | 1,220,818 | $ | 1,198,389 | |||||||||||
| Less: average preferred stock | (110,927 | ) | (110,927 | ) | (110,927 | ) | (110,927 | ) | (110,927 | ) | |||||||||||
| Average common equity | $ | 1,130,811 | $ | 1,123,797 | $ | 1,109,694 | $ | 1,109,891 | $ | 1,087,462 | |||||||||||
| Less: average intangible assets | (213,205 | ) | (213,502 | ) | (213,813 | ) | (214,133 | ) | (214,472 | ) | |||||||||||
| Average tangible common equity | $ | 917,606 | $ | 910,295 | $ | 895,881 | $ | 895,758 | $ | 872,990 | |||||||||||
| Return on avg. common equity (GAAP) | 6.64 | % | 5.54 | % | 6.36 | % | 5.69 | % | 6.48 | % | |||||||||||
| Operating return on avg. common equity (non-GAAP) (3) | 7.11 | 5.70 | 6.50 | 5.75 | 6.96 | ||||||||||||||||
| Return on avg. tangible common equity (non-GAAP) (4) | 8.27 | 6.93 | 7.98 | 7.15 | 8.18 | ||||||||||||||||
| Operating return on avg. tangible common equity (non-GAAP) (5) | 8.77 | 7.03 | 8.05 | 7.12 | 8.67 | ||||||||||||||||
| Efficiency Measures | |||||||||||||||||||||
| Total noninterest expenses | $ | 38,498 | $ | 38,641 | $ | 37,594 | $ | 37,065 | $ | 37,845 | |||||||||||
| FDIC special assessment | - | - | - | - | (2,100 | ) | |||||||||||||||
| Merger expenses | (863 | ) | (742 | ) | - | - | - | ||||||||||||||
| Branch closing expenses | (477 | ) | - | - | - | - | |||||||||||||||
| Amortization of core deposit intangibles | (296 | ) | (297 | ) | (321 | ) | (321 | ) | (348 | ) | |||||||||||
| Operating noninterest expense | $ | 36,862 | $ | 37,602 | $ | 37,273 | $ | 36,744 | $ | 35,397 | |||||||||||
| Net interest income (tax equivalent basis) | $ | 65,593 | $ | 61,710 | $ | 62,255 | $ | 61,111 | $ | 62,627 | |||||||||||
| Noninterest income | 3,744 | 4,737 | 4,399 | 3,848 | 4,209 | ||||||||||||||||
| Net losses (gains) on equity securities | 307 | (432 | ) | 209 | (86 | ) | (557 | ) | |||||||||||||
| Operating revenue | $ | 69,644 | $ | 66,015 | $ | 66,863 | $ | 64,873 | $ | 66,279 | |||||||||||
| Operating efficiency ratio (non-GAAP) (6) | 52.9 | % | 57.0 | % | 55.7 | % | 56.6 | % | 53.4 | % | |||||||||||
| Net Interest Margin | |||||||||||||||||||||
| Average interest-earning assets | $ | 9,117,201 | $ | 9,206,038 | $ | 9,210,050 | $ | 9,323,291 | $ | 9,172,165 | |||||||||||
| Net interest income (tax equivalent basis) | 65,593 | 61,710 | 62,255 | 61,111 | 62,627 | ||||||||||||||||
| Net interest margin (GAAP) | 2.86 | % | 2.67 | % | 2.72 | % | 2.64 | % | 2.71 | % | |||||||||||
| (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 | |||||||||||||||||||||
| Dec. 31, | Sept. 30, | Jun. 30, | Mar. 31, | Dec. 31, | |||||||||||||||||
| 2024 | 2024 | 2024 | 2024 | 2023 | |||||||||||||||||
| Capital Ratios and Book Value per Share | (dollars in thousands, except for per share data) | ||||||||||||||||||||
| Stockholders equity | $ | 1,241,704 | $ | 1,239,496 | $ | 1,224,227 | $ | 1,216,609 | $ | 1,216,620 | |||||||||||
| Less: preferred stock | (110,927 | ) | (110,927 | ) | (110,927 | ) | (110,927 | ) | (110,927 | ) | |||||||||||
| Common equity | $ | 1,130,777 | $ | 1,128,569 | $ | 1,113,300 | $ | 1,105,682 | $ | 1,105,693 | |||||||||||
| Less: intangible assets | (213,011 | ) | (213,307 | ) | (213,604 | ) | (213,925 | ) | (214,246 | ) | |||||||||||
| Tangible common equity | $ | 917,766 | $ | 915,262 | $ | 899,696 | $ | 891,757 | $ | 891,447 | |||||||||||
| Total assets | $ | 9,879,600 | $ | 9,639,603 | $ | 9,723,731 | $ | 9,853,964 | $ | 9,855,603 | |||||||||||
| Less: intangible assets | (213,011 | ) | (213,307 | ) | (213,604 | ) | (213,925 | ) | (214,246 | ) | |||||||||||
| Tangible assets | $ | 9,666,589 | $ | 9,426,296 | $ | 9,510,127 | $ | 9,640,039 | $ | 9,641,357 | |||||||||||
| Common shares outstanding | 38,370,317 | 38,368,217 | 38,365,069 | 38,333,053 | 38,519,770 | ||||||||||||||||
| Common equity ratio (GAAP) | 11.45 | % | 11.71 | % | 11.45 | % | 11.22 | % | 11.22 | % | |||||||||||
| Tangible common equity ratio (non-GAAP) (7) | 9.49 | 9.71 | 9.46 | 9.25 | 9.25 | ||||||||||||||||
| Regulatory capital ratios (Bancorp): | |||||||||||||||||||||
| Leverage ratio | 11.33 | % | 11.10 | % | 10.97 | % | 10.73 | % | 10.86 | % | |||||||||||
| Common equity Tier 1 risk-based ratio | 10.97 | 11.07 | 10.90 | 10.70 | 10.62 | ||||||||||||||||
| Risk-based Tier 1 capital ratio | 12.29 | 12.42 | 12.25 | 12.03 | 11.95 | ||||||||||||||||
| Risk-based total capital ratio | 14.11 | 14.29 | 14.10 | 13.88 | 13.77 | ||||||||||||||||
| Regulatory capital ratios (Bank): | |||||||||||||||||||||
| Leverage ratio | 11.66 | % | 11.43 | % | 11.29 | % | 11.10 | % | 11.20 | % | |||||||||||
| Common equity Tier 1 risk-based ratio | 12.63 | 12.79 | 12.60 | 12.43 | 12.31 | ||||||||||||||||
| Risk-based Tier 1 capital ratio | 12.63 | 12.79 | 12.60 | 12.43 | 12.31 | ||||||||||||||||
| Risk-based total capital ratio | 13.60 | 13.77 | 13.58 | 13.41 | 13.28 | ||||||||||||||||
| Book value per share (GAAP) | $ | 29.47 | $ | 29.41 | $ | 29.02 | $ | 28.84 | $ | 28.70 | |||||||||||
| Tangible book value per share (non-GAAP) (8) | 23.92 | 23.85 | 23.45 | 23.26 | 23.14 | ||||||||||||||||
| Net Loan Charge-offs (Recoveries): | |||||||||||||||||||||
| Net loan charge-offs (recoveries): | |||||||||||||||||||||
| Charge-offs | $ | 3,363 | $ | 3,559 | $ | 3,595 | $ | 3,185 | $ | 8,960 | |||||||||||
| Recoveries | (29 | ) | (53 | ) | (324 | ) | (23 | ) | - | ||||||||||||
| Net loan charge-offs | $ | 3,334 | $ | 3,506 | $ | 3,271 | $ | 3,162 | $ | 8,960 | |||||||||||
| Net loan charge-offs as a % of average loans receivable (annualized) | 0.16 | % | 0.17 | % | 0.16 | % | 0.15 | % | 0.43 | % | |||||||||||
| Asset Quality | |||||||||||||||||||||
| Nonaccrual loans | $ | 57,310 | $ | 51,300 | $ | 46,026 | $ | 47,438 | $ | 52,524 | |||||||||||
| Other real estate owned | - | - | - | - | - | ||||||||||||||||
| Nonperforming assets | $ | 57,310 | $ | 51,300 | $ | 46,026 | $ | 47,438 | $ | 52,524 | |||||||||||
| Allowance for credit losses - loans ("ACL") | $ | 82,685 | $ | 82,494 | $ | 82,077 | $ | 82,869 | $ | 81,974 | |||||||||||
| Loans receivable | 8,274,810 | 8,111,976 | 8,157,903 | 8,297,957 | 8,345,145 | ||||||||||||||||
| Nonaccrual loans as a % of loans receivable | 0.69 | % | 0.63 | % | 0.56 | % | 0.57 | % | 0.63 | % | |||||||||||
| Nonperforming assets as a % of total assets | 0.58 | 0.53 | 0.47 | 0.48 | 0.53 | ||||||||||||||||
| ACL as a % of loans receivable | 1.00 | 1.02 | 1.01 | 1.00 | 0.98 | ||||||||||||||||
| ACL as a % of nonaccrual loans | 144.3 | 160.8 | 178.3 | 174.7 | 156.1 | ||||||||||||||||
| (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 | ||||||||||||||||||||||||||||||
| December 31, 2024 | September 30, 2024 | December 31, 2023 | ||||||||||||||||||||||||||||
| Average | Average | Average | ||||||||||||||||||||||||||||
| Interest-earning assets: | Balance | Interest | Rate (7) | Balance | Interest | Rate (7) | Balance | Interest | Rate (7) | |||||||||||||||||||||
| Investment securities (1) (2) | $ | 736,131 | $ | 6,207 | 3.35 | % | $ | 736,946 | $ | 6,157 | 3.32 | % | $ | 723,433 | $ | 5,757 | 3.16 | % | ||||||||||||
| Loans receivable and loans held-for-sale (2) (3) (4) | 8,103,624 | 118,934 | 5.84 | 8,123,416 | 119,805 | 5.87 | 8,268,299 | 121,130 | 5.81 | |||||||||||||||||||||
| Federal funds sold and interest- | ||||||||||||||||||||||||||||||
| bearing deposits with banks | 238,957 | 2,815 | 4.69 | 304,009 | 4,056 | 5.31 | 134,168 | 1,963 | 5.80 | |||||||||||||||||||||
| Restricted investment in bank stock | 38,489 | 959 | 9.91 | 41,667 | 1,048 | 10.01 | 46,265 | 912 | 7.82 | |||||||||||||||||||||
| Total interest-earning assets | 9,117,201 | 128,915 | 5.63 | 9,206,038 | 131,066 | 5.66 | 9,172,165 | 129,762 | 5.61 | |||||||||||||||||||||
| Allowance for credit losses | (83,938 | ) | (83,355 | ) | (88,861 | ) | ||||||||||||||||||||||||
| Noninterest-earning assets | 620,183 | 620,170 | 607,442 | |||||||||||||||||||||||||||
| Total assets | $ | 9,653,446 | $ | 9,742,853 | $ | 9,690,746 | ||||||||||||||||||||||||
| Interest-bearing liabilities: | ||||||||||||||||||||||||||||||
| Time deposits | $ | 2,478,163 | 27,374 | 4.39 | $ | 2,625,329 | 30,245 | 4.58 | $ | 2,495,091 | 26,486 | 4.21 | ||||||||||||||||||
| Other interest-bearing deposits | 3,838,575 | 31,194 | 3.23 | 3,747,427 | 33,540 | 3.56 | 3,747,093 | 32,846 | 3.48 | |||||||||||||||||||||
| Total interest-bearing deposits | 6,316,738 | 58,568 | 3.69 | 6,372,756 | 63,785 | 3.98 | 6,242,184 | 59,332 | 3.77 | |||||||||||||||||||||
| Borrowings | 648,300 | 3,430 | 2.10 | 717,586 | 4,239 | 2.35 | 823,123 | 6,467 | 3.12 | |||||||||||||||||||||
| Subordinated debentures, net | 79,862 | 1,305 | 6.50 | 79,735 | 1,312 | 6.55 | 79,356 | 1,313 | 6.56 | |||||||||||||||||||||
| Finance lease | 1,280 | 19 | 5.91 | 1,349 | 20 | 5.90 | 1,546 | 23 | 5.90 | |||||||||||||||||||||
| Total interest-bearing liabilities | 7,046,180 | 63,322 | 3.58 | 7,171,426 | 69,356 | 3.85 | 7,146,209 | 67,135 | 3.73 | |||||||||||||||||||||
| Noninterest-bearing demand deposits | 1,304,699 | 1,259,912 | 1,248,132 | |||||||||||||||||||||||||||
| Other liabilities | 60,829 | 76,791 | 98,016 | |||||||||||||||||||||||||||
| Total noninterest-bearing liabilities | 1,365,528 | 1,336,703 | 1,346,148 | |||||||||||||||||||||||||||
| Stockholders' equity | 1,241,738 | 1,234,724 | 1,198,389 | |||||||||||||||||||||||||||
| Total liabilities and stockholders' equity | $ | 9,653,446 | $ | 9,742,853 | $ | 9,690,746 | ||||||||||||||||||||||||
| Net interest income (tax equivalent basis) | 65,593 | 61,710 | 62,627 | |||||||||||||||||||||||||||
| Net interest spread (5) | 2.05 | % | 1.82 | % | 1.89 | % | ||||||||||||||||||||||||
| Net interest margin (6) | 2.86 | % | 2.67 | % | 2.71 | % | ||||||||||||||||||||||||
| Tax equivalent adjustment | (882 | ) | (823 | ) | (805 | ) | ||||||||||||||||||||||||
| Net interest income | $ | 64,711 | $ | 60,887 | $ | 61,822 | ||||||||||||||||||||||||
| (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 were CNOB's Q4 2024 earnings per share?
How much did CNOB's net interest margin improve in Q4 2024?
When is CNOB's merger with First of Long Island expected to close?
What dividend did CNOB declare for Q4 2024?
How did CNOB's full-year 2024 performance compare to 2023?
