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 $31.0
million for the fourth quarter of 2022 compared with $27.4 million
for the third quarter of 2022 and $31.3 million for the fourth
quarter of 2021. Diluted earnings per share were $0.79 for the
fourth quarter of 2022 compared with $0.70 in the third quarter of
2022 and $0.79 in the fourth quarter of 2021. The increase in net
income available to common stockholders and diluted earnings per
share from the third quarter of 2022 was primarily attributable to
a $6.7 million decrease in the provision for credit losses due to
changes in forecasted macroeconomic factors and a $0.2 million
increase in noninterest income, partially offset by a $0.2 million
decrease in net interest income, a $1.2 million increase in
noninterest expenses and a $1.9 million increase in income tax
expenses. The decrease in net income available to common
stockholders from the fourth quarter of 2021 was primarily due to a
$5.2 million increase in noninterest expenses and a $2.5 million
increase in the provision for credit losses, partially offset by a
$7.5 million increase in net interest income. Full-year 2022 net
income available to common stockholders was $119.2 million,
compared to $128.6 million for 2021. Diluted earnings per share for
the full-year 2022 was $3.01, compared with $3.22 for 2021.
Frank Sorrentino, ConnectOne’s Chairman and Chief Executive
Officer stated, “ConnectOne had another successful year as we
gained even further traction in all of our markets, delivering
solid organic growth and best-in-class efficiency while also
investing in our operating platform to support future
performance.”
“Like many others in the industry, the fourth quarter presented
some challenges with respect to deposit retention and cost as
competition significantly increased. However, despite this
headwind, we delivered solid performance. Metrics remained in the
industry’s upper quartile. Return on assets was 1.36% for the
quarter while our return on tangible common equity was 14.8%.
Additionally, ConnectOne’s pre-tax, pre-provision net revenue
(“PPNR”) as a percent of assets again exceeded 2%, the 10th
consecutive quarter PPNR has been higher than 2%.”
“We also continued to leverage our technological advantages and
our culture to drive results. Tangible book value per share
increased 3.7% sequentially, 7.9% from a year ago, and has now
increased for 11 consecutive quarters. Our efficiency ratio
remained below 40% for the quarter, despite a compressed net
interest margin and continued investment in our platform and our
staff. Even during these challenging conditions, ConnectOne remains
one of the industry’s most efficient banks nationwide.” Mr.
Sorrentino added, “Our capital ratios remain strong and, while
others in the industry have experienced weakness, our tangible
common equity ratio was very solid at 9% at year-end. Further, we
enter 2023 with sound credit quality and continued improving credit
metrics including delinquencies at their lowest levels in recent
history.”
“With respect to organic growth, ConnectOne had a record year
for both loan originations and deposits. Highlighting our strategy
to invest in and further strengthen our origination franchise,
ConnectOne’s loan portfolio increased 19% year-over-year and
deposits grew 16%.” Mr. Sorrentino concluded, “We enter 2023 with a
strong and resilient balance sheet and remain committed to
investing in our franchise to drive results. Coupled with our
strong client-centric culture and commitment to efficiency through
investment in technology, ConnectOne remains well positioned for
continued success.”
Dividend Declarations
The Company announced that its Board of Directors declared a
quarterly cash dividend on both its common stock and its
outstanding preferred stock.
A cash dividend on common stock of $0.155 per share will be paid
on March 1, 2023, to common stockholders of record on February 17,
2023. A dividend of $0.328125 per 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 March 1, 2023 to preferred stockholders of record on
February 17, 2023.
Operating Results
Fully taxable equivalent net interest income for the fourth
quarter of 2022 was $78.8 million, roughly flat from the third
quarter of 2022 due to a 5.5% increase in average interest-earning
assets, primarily loans, offset by a 20 basis-point contraction in
the net interest margin While the net interest margin benefitted
from a 43 bps increase in the loan portfolio yield, to 5.20%, the
average cost of deposits, including noninterest bearing demand,
increased by 69 basis points to 1.46% from 0.77% in the third
quarter of 2022. Loan yields continued to increase as a result of
new loan originations combined with repricing and maturities of
lower rate interest-earning loans outstanding. Funding cost
increases were a result of higher market interest rates combined
with increased competition due to a contracting U.S. money
supply.
Fully taxable equivalent net interest income for the fourth
quarter of 2022 increased by $7.9 million, or 11.1%, from the
fourth quarter of 2021. The increase from the fourth quarter of
2021 resulted primarily from a 19.5% increase in average interest
earning assets, primarily loans, and was partially offset by a 27
basis-point contraction of the net interest margin to 3.48% from
3.75%. The contraction in the net interest margin resulted from a
141 basis-point increase in the cost of average interest-bearing
liabilities, partially offset by an 81 basis-point increase in the
yield on average interest-earning assets and a 4.7% increase in
average noninterest-bearing demand deposits.
Noninterest income was $3.5 million in the fourth quarter of
2022, $3.3 million in the third quarter of 2022 and $3.8 million in
the fourth quarter of 2021. Included in noninterest income were net
losses on equity securities of $0.1 million, $0.4 million, and $0.1
million for the fourth quarter of 2022, third quarter of 2022 and
fourth quarter of 2021, respectively. Excluding equity securities
losses, adjusted noninterest income was $3.6 million, $3.8 million
and $3.9 million for the fourth quarter of 2022, third quarter of
2022 and fourth quarter of 2021, respectively. The $0.2 million
decrease in adjusted noninterest income for the fourth quarter 2022
versus the third quarter of 2022 was primarily due to decreases in
net gains on loans held-for-sale of $0.1 million and deposit, loan
and other income of $0.1 million. The $0.3 million decrease in
adjusted noninterest income for the fourth quarter 2022 versus the
fourth quarter 2021 was primarily due to a decrease in net gains on
loans held-for-sale of $1.0 million, partially offset by increases
in BOLI income of $0.3 million and deposit, loan and other income
of $0.4 million.
Noninterest expenses totaled $33.3 million for the fourth
quarter of 2022, $32.1 million for the third quarter of 2022 and
$28.1 million for the fourth quarter of 2021. The increase in
noninterest expenses of $1.2 million from the third quarter of 2022
was attributable to inflationary pressures including increases in
salaries and employee benefits of $0.8 million, professional and
consulting expense of $0.2 million, other expenses of $0.1 million
and FDIC insurance expenses of $0.1 million. The increase in
noninterest expenses of $5.2 million from the fourth quarter of
2021 was attributable to increases in salaries and employee
benefits of $5.2 million. The increase in salaries and employee
benefits from the prior sequential quarter and prior year quarter
was attributable to increased staff in both the revenue and
back-office areas of the bank, base salary increases, and incentive
compensation accruals.
Income tax expense was $12.3 million for the fourth quarter of
2022, $10.4 million for the third quarter of 2022 and $12.3 million
for the fourth quarter of 2021. The effective tax rates for the
fourth quarter of 2022, third quarter of 2022 and fourth quarter of
2021 were 27.5%, 26.5% and 27.1%, respectively.
Asset Quality
The provision for credit losses was $3.3 million for the fourth
quarter of 2022, $10.0 million for the third quarter of 2022 and
$0.8 million for the fourth quarter of 2021. The decreased
provision for credit losses during the fourth quarter of 2022
reflected changes in forecasted macroeconomic conditions.
Nonperforming assets, which includes nonaccrual loans and other
real estate owned, were $44.7 million as of December 31, 2022,
$57.7 million as of September 30, 2022 and $61.7 million as of
December 31, 2021. Nonaccrual loans were $44.5 million as of
December 31, 2022, $57.5 million as of September 30, 2022 and $61.7
million as of December 31, 2021. Nonperforming assets as a
percentage of total assets (the “NPA ratio”) were 0.46% as of
December 31, 2022, 0.61% as of September 30, 2022 and 0.76% as of
December 31, 2021. The NPA ratio declined for the 5th consecutive
quarter and, excluding taxi medallion loans, was 0.23% as of
December 31, 2022. The ratio of nonaccrual loans to loans
receivable was 0.55%, 0.73% and 0.90%, as of December 31, 2022,
September 30, 2022 and December 31, 2021, respectively. The
annualized net loan charge-offs ratios were 0.22% for the fourth
quarter of 2022, 0.02% for the third quarter of 2022 and 0.01% for
the fourth quarter of 2021. The current quarter’s charge-offs
relate to the successful workout of nonaccrual loans identified and
reserved for in previous periods. The allowance for credit losses
represented 1.12%, 1.16%, and 1.15% of loans receivable as of
December 31, 2022, September 30, 2022 and December 31, 2021,
respectively. The allowance for credit losses as a percentage of
nonaccrual loans increase to 203.6% as of December 31, 2022 versus
159.6% as of September 30, 2022 and 127.7% as of December 31,
2021.
Selected Balance Sheet Items
The Company’s total assets were $9.6 billion as of December 31,
2022, an increase of $1.5 billion from December 31, 2021. Loans
receivable were $8.1 billion, an increase of $1.3 billion from
December 31, 2021. The increase in loans receivable was
attributable to organic loan originations.
The Company’s total stockholders’ equity was $1.2 billion as of
December 31, 2022, an increase of $54.5 million from December 31,
2021. The increase in retained earnings of $95.7 million was the
primary reason for the overall increase in stockholders’ equity, in
addition to an increase in additional paid-in capital of $2.9
million, partially offset by a decrease in accumulated other
comprehensive income of $31.0 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 $13.1 million. As of December 31, 2022, the
Company’s tangible common equity ratio and tangible book value per
share were 9.04% and $21.71, 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 $215.7 million as of December 31, 2022, and
$217.4 million as of December 31, 2021.
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 and Full Year 2022 Results Conference
Call
Management will also host a conference call and audio webcast at
10:00 a.m. ET on January 26, 2023 to review the Company's financial
performance and operating results. The conference call dial-in
number is 1-201-689-8471, access code 13735159. 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 26, 2023 and ending
on Thursday, February 2, 2023 by dialing 1-412-317-6671, access
code 13735159. 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.
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 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 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:Shannan
Weeks MWW 732.299.7890: sweeks@mww.com
|
|
|
|
CONNECTONE
BANCORP,
INC. AND
SUBSIDIARIES |
|
|
|
CONSOLIDATED CONDENSED STATEMENTS OF FINANCIAL
CONDITION |
|
|
(in
thousands) |
|
|
|
|
|
|
|
|
December
31 |
|
December
31, |
|
|
2022 |
|
|
|
2021 |
|
|
(unaudited) |
|
|
ASSETS |
|
|
|
Cash and due
from banks |
$ |
61,629 |
|
|
$ |
54,352 |
|
Interest-bearing deposits with banks |
|
206,686 |
|
|
|
211,184 |
|
Cash and cash equivalents |
|
268,315 |
|
|
|
265,536 |
|
|
|
|
|
Investment
securities |
|
634,884 |
|
|
|
534,507 |
|
Equity
securities |
|
15,811 |
|
|
|
13,794 |
|
|
|
|
|
Loans
held-for-sale |
|
13,772 |
|
|
|
250 |
|
|
|
|
|
Loans
receivable |
|
8,099,689 |
|
|
|
6,828,622 |
|
Less:
Allowance for credit losses - loans |
|
90,513 |
|
|
|
78,773 |
|
Net loans receivable |
|
8,009,176 |
|
|
|
6,749,849 |
|
|
|
|
|
Investment
in restricted stock, at cost |
|
46,604 |
|
|
|
27,826 |
|
Bank
premises and equipment, net |
|
27,800 |
|
|
|
29,032 |
|
Accrued
interest receivable |
|
46,062 |
|
|
|
34,152 |
|
Bank owned
life insurance |
|
231,328 |
|
|
|
195,731 |
|
Right of use
operating lease assets |
|
10,179 |
|
|
|
11,017 |
|
Other real
estate owned |
|
264 |
|
|
|
- |
|
Goodwill |
|
208,372 |
|
|
|
208,372 |
|
Core deposit
intangibles |
|
7,312 |
|
|
|
8,997 |
|
Other
assets |
|
125,069 |
|
|
|
50,417 |
|
Total assets |
$ |
9,644,948 |
|
|
$ |
8,129,480 |
|
|
|
|
|
LIABILITIES |
|
|
|
Deposits: |
|
|
|
Noninterest-bearing |
$ |
1,501,614 |
|
|
$ |
1,617,049 |
|
Interest-bearing |
|
5,855,008 |
|
|
|
4,715,904 |
|
Total deposits |
|
7,356,622 |
|
|
|
6,332,953 |
|
Borrowings |
|
857,622 |
|
|
|
468,193 |
|
Subordinated
debentures, net |
|
153,255 |
|
|
|
152,951 |
|
Operating
lease liabilities |
|
11,397 |
|
|
|
12,417 |
|
Other
liabilities |
|
87,301 |
|
|
|
38,754 |
|
Total liabilities |
|
8,466,197 |
|
|
|
7,005,268 |
|
|
|
|
|
COMMITMENTS AND CONTINGENCIES |
|
|
|
|
|
|
|
STOCKHOLDERS' EQUITY |
|
|
|
Preferred
stock |
|
110,927 |
|
|
|
110,927 |
|
Common
stock |
|
586,946 |
|
|
|
586,946 |
|
Additional
paid-in capital |
|
30,126 |
|
|
|
27,246 |
|
Retained
earnings |
|
535,915 |
|
|
|
440,169 |
|
Treasury
stock |
|
(52,799 |
) |
|
|
(39,672 |
) |
Accumulated
other comprehensive loss |
|
(32,364 |
) |
|
|
(1,404 |
) |
Total stockholders' equity |
|
1,178,751 |
|
|
|
1,124,212 |
|
Total liabilities and stockholders'
equity |
$ |
9,644,948 |
|
|
$ |
8,129,480 |
|
|
|
|
|
CONNECTONE BANCORP, INC. AND SUBSIDIARIES |
|
|
|
|
|
|
|
CONSOLIDATED STATEMENTS OF INCOME |
|
|
|
|
|
|
|
(dollars in thousands, except for per share
data) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended |
|
Twelve Months Ended |
|
12/31/22 |
|
12/31/21 |
|
12/31/22 |
|
12/31/21 |
Interest income |
|
|
|
|
|
|
|
Interest and fees on loans |
$ |
104,952 |
|
|
$ |
76,891 |
|
|
$ |
352,993 |
|
|
$ |
293,546 |
|
Interest and dividends on investment securities: |
|
|
|
|
|
|
|
Taxable |
|
4,225 |
|
|
|
1,265 |
|
|
|
12,712 |
|
|
|
4,413 |
|
Tax-exempt |
|
1,185 |
|
|
|
518 |
|
|
|
3,893 |
|
|
|
2,403 |
|
Dividends |
|
712 |
|
|
|
207 |
|
|
|
1,655 |
|
|
|
971 |
|
Interest on federal funds sold and other short-term
investments |
|
1,395 |
|
|
|
159 |
|
|
|
2,493 |
|
|
|
405 |
|
Total interest income |
|
112,469 |
|
|
|
79,040 |
|
|
|
373,746 |
|
|
|
301,738 |
|
Interest expense |
|
|
|
|
|
|
|
Deposits |
|
26,543 |
|
|
|
5,281 |
|
|
|
50,561 |
|
|
|
24,768 |
|
Borrowings |
|
7,917 |
|
|
|
3,298 |
|
|
|
21,066 |
|
|
|
14,092 |
|
Total interest expense |
|
34,460 |
|
|
|
8,579 |
|
|
|
71,627 |
|
|
|
38,860 |
|
|
|
|
|
|
|
|
|
Net
interest income |
|
78,009 |
|
|
|
70,461 |
|
|
|
302,119 |
|
|
|
262,878 |
|
Provision for (reversal of) credit losses |
|
3,300 |
|
|
|
815 |
|
|
|
17,750 |
|
|
|
(5,500 |
) |
Net
interest income after provision for credit losses |
|
74,709 |
|
|
|
69,646 |
|
|
|
284,369 |
|
|
|
268,378 |
|
|
|
|
|
|
|
|
|
Noninterest income |
|
|
|
|
|
|
|
Deposit, loan and other income |
|
1,894 |
|
|
|
1,525 |
|
|
|
7,472 |
|
|
|
6,617 |
|
Income on bank owned life insurance |
|
1,528 |
|
|
|
1,244 |
|
|
|
5,597 |
|
|
|
4,771 |
|
Net gains on sale of loans held-for-sale |
|
176 |
|
|
|
1,139 |
|
|
|
1,695 |
|
|
|
3,807 |
|
Gain on sale of branches |
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
674 |
|
Net losses on equity securities |
|
(90 |
) |
|
|
(131 |
) |
|
|
(1,521 |
) |
|
|
(373 |
) |
Net gains on sale/redemption of investment securities |
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
195 |
|
Total noninterest income |
|
3,508 |
|
|
|
3,777 |
|
|
|
13,243 |
|
|
|
15,691 |
|
|
|
|
|
|
|
|
|
Noninterest expenses |
|
|
|
|
|
|
|
Salaries and employee benefits |
|
21,676 |
|
|
|
16,483 |
|
|
|
80,717 |
|
|
|
64,072 |
|
Occupancy and equipment |
|
2,603 |
|
|
|
2,762 |
|
|
|
9,865 |
|
|
|
11,638 |
|
FDIC insurance |
|
830 |
|
|
|
625 |
|
|
|
2,881 |
|
|
|
2,665 |
|
Professional and consulting |
|
2,157 |
|
|
|
1,996 |
|
|
|
8,053 |
|
|
|
8,286 |
|
Marketing and advertising |
|
454 |
|
|
|
454 |
|
|
|
1,692 |
|
|
|
1,318 |
|
Information technology and communications |
|
2,694 |
|
|
|
3,058 |
|
|
|
11,108 |
|
|
|
11,267 |
|
Amortization of core deposit intangible |
|
409 |
|
|
|
483 |
|
|
|
1,685 |
|
|
|
1,981 |
|
Increase in value of acquisition price |
|
- |
|
|
|
- |
|
|
|
1,516 |
|
|
|
- |
|
Other expenses |
|
2,489 |
|
|
|
2,223 |
|
|
|
8,871 |
|
|
|
7,784 |
|
Total noninterest expenses |
|
33,312 |
|
|
|
28,084 |
|
|
|
126,388 |
|
|
|
109,011 |
|
|
|
|
|
|
|
|
|
Income before income tax expense |
|
44,905 |
|
|
|
45,339 |
|
|
|
171,224 |
|
|
|
175,058 |
|
Income tax expense |
|
12,348 |
|
|
|
12,301 |
|
|
|
46,013 |
|
|
|
44,705 |
|
Net
income |
|
32,557 |
|
|
|
33,038 |
|
|
|
125,211 |
|
|
|
130,353 |
|
Preferred dividends |
|
1,510 |
|
|
|
1,717 |
|
|
|
6,037 |
|
|
|
1,717 |
|
Net
income available to common stockholders |
$ |
31,047 |
|
|
$ |
31,321 |
|
|
$ |
119,174 |
|
|
$ |
128,636 |
|
|
|
|
|
|
|
|
|
Earnings per common share: |
|
|
|
|
|
|
|
Basic |
$ |
0.79 |
|
|
$ |
0.79 |
|
|
$ |
3.03 |
|
|
$ |
3.24 |
|
Diluted |
|
0.79 |
|
|
|
0.79 |
|
|
|
3.01 |
|
|
|
3.22 |
|
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, |
|
|
Sep.
30, |
|
|
Jun.
30, |
|
|
Mar.
31, |
|
|
Dec.
31, |
|
|
2022 |
|
|
2022 |
|
|
2022 |
|
|
2022 |
|
|
2021 |
|
Selected Financial Data |
(dollars in
thousands) |
Total assets |
$ |
9,644,948 |
|
|
$ |
9,478,252 |
|
|
$ |
8,841,506 |
|
|
$ |
8,334,301 |
|
|
$ |
8,129,480 |
|
Loans
receivable: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Commercial |
$ |
1,443,942 |
|
|
$ |
1,392,037 |
|
|
$ |
1,274,280 |
|
|
$ |
1,161,867 |
|
|
$ |
1,163,442 |
|
Paycheck Protection Program ("PPP") loans |
11,374 |
|
|
11,458 |
|
|
18,004 |
|
|
54,301 |
|
|
93,057 |
|
Commercial real estate |
3,170,760 |
|
|
3,087,354 |
|
|
2,727,120 |
|
|
2,516,065 |
|
|
2,446,807 |
|
Multifamily |
2,641,886 |
|
|
2,624,726 |
|
|
2,442,603 |
|
|
2,465,337 |
|
|
2,337,712 |
|
Commercial construction |
574,139 |
|
|
537,323 |
|
|
569,789 |
|
|
539,058 |
|
|
540,178 |
|
Residential |
264,748 |
|
|
256,085 |
|
|
249,379 |
|
|
250,205 |
|
|
255,269 |
|
Consumer |
2,312 |
|
|
1,030 |
|
|
1,248 |
|
|
1,140 |
|
|
1,886 |
|
Gross loans |
8,109,161 |
|
|
7,910,013 |
|
|
7,282,423 |
|
|
6,987,973 |
|
|
6,838,351 |
|
Unearned net
origination fees |
(9,472 |
) |
|
(9,563 |
) |
|
(7,850 |
) |
|
(8,378 |
) |
|
(9,729 |
) |
Loans receivable |
8,099,689 |
|
|
7,900,450 |
|
|
7,274,573 |
|
|
6,979,595 |
|
|
6,828,622 |
|
Loans held-for-sale |
13,772 |
|
|
8,080 |
|
|
3,182 |
|
|
2,742 |
|
|
250 |
|
Total
loans |
$ |
8,113,461 |
|
|
$ |
7,908,530 |
|
|
$ |
7,277,755 |
|
|
$ |
6,982,337 |
|
|
$ |
6,828,872 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Investment
and equity securities |
$ |
650,695 |
|
|
$ |
639,192 |
|
|
$ |
691,934 |
|
|
$ |
525,228 |
|
|
$ |
548,301 |
|
Goodwill and
other intangible assets |
215,684 |
|
|
216,093 |
|
|
216,502 |
|
|
216,936 |
|
|
217,369 |
|
Deposits: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Noninterest-bearing demand |
$ |
1,501,614 |
|
|
$ |
1,665,658 |
|
|
$ |
1,712,875 |
|
|
$ |
1,631,292 |
|
|
$ |
1,617,049 |
|
Time deposits |
2,394,190 |
|
|
1,921,235 |
|
|
1,285,409 |
|
|
1,065,814 |
|
|
1,150,109 |
|
Other interest-bearing deposits |
3,460,818 |
|
|
3,723,617 |
|
|
3,619,315 |
|
|
3,863,299 |
|
|
3,565,795 |
|
Total
deposits |
$ |
7,356,622 |
|
|
$ |
7,310,510 |
|
|
$ |
6,617,599 |
|
|
$ |
6,560,405 |
|
|
$ |
6,332,953 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Borrowings |
$ |
857,622 |
|
|
$ |
829,953 |
|
|
$ |
874,964 |
|
|
$ |
412,170 |
|
|
$ |
468,193 |
|
Subordinated
debentures (net of debt issuance costs) |
153,255 |
|
|
153,179 |
|
|
153,103 |
|
|
153,027 |
|
|
152,951 |
|
Total
stockholders' equity |
1,178,751 |
|
|
1,148,295 |
|
|
1,143,147 |
|
|
1,138,519 |
|
|
1,124,212 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Quarterly Average Balances |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
assets |
$ |
9,490,477 |
|
|
$ |
9,030,589 |
|
|
$ |
8,322,823 |
|
|
$ |
8,263,382 |
|
|
$ |
8,027,169 |
|
Loans
receivable: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Commercial (including PPP loans) |
$ |
1,456,247 |
|
|
$ |
1,342,868 |
|
|
$ |
1,245,812 |
|
|
$ |
1,231,703 |
|
|
$ |
1,278,048 |
|
Commercial real estate (including multifamily) |
5,758,594 |
|
|
5,455,714 |
|
|
4,974,297 |
|
|
4,850,349 |
|
|
4,625,371 |
|
Commercial construction |
558,086 |
|
|
537,073 |
|
|
544,084 |
|
|
541,642 |
|
|
547,038 |
|
Residential |
261,969 |
|
|
251,338 |
|
|
247,208 |
|
|
253,589 |
|
|
268,112 |
|
Consumer |
4,630 |
|
|
2,361 |
|
|
5,029 |
|
|
3,682 |
|
|
4,938 |
|
Gross loans |
8,039,526 |
|
|
7,589,354 |
|
|
7,016,430 |
|
|
6,880,965 |
|
|
6,723,507 |
|
Unearned net
origination fees |
(9,666 |
) |
|
(9,178 |
) |
|
(9,222 |
) |
|
(9,870 |
) |
|
(10,873 |
) |
Loans receivable |
8,029,860 |
|
|
7,580,176 |
|
|
7,007,208 |
|
|
6,871,095 |
|
|
6,712,634 |
|
Loans held-for-sale |
7,933 |
|
|
2,195 |
|
|
966 |
|
|
382 |
|
|
5,051 |
|
Total
loans |
$ |
8,037,793 |
|
|
$ |
7,582,371 |
|
|
$ |
7,008,174 |
|
|
$ |
6,871,477 |
|
|
$ |
6,717,685 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Investment
and equity securities |
$ |
650,479 |
|
|
$ |
687,291 |
|
|
$ |
567,140 |
|
|
$ |
536,090 |
|
|
$ |
481,276 |
|
Goodwill and
other intangible assets |
215,951 |
|
|
216,360 |
|
|
216,786 |
|
|
217,219 |
|
|
217,685 |
|
Deposits: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Noninterest-bearing demand |
$ |
1,610,044 |
|
|
$ |
1,682,135 |
|
|
$ |
1,607,465 |
|
|
$ |
1,547,055 |
|
|
$ |
1,537,316 |
|
Time deposits |
2,035,362 |
|
|
1,525,076 |
|
|
1,103,418 |
|
|
1,124,614 |
|
|
1,204,374 |
|
Other interest-bearing deposits |
3,558,881 |
|
|
3,686,520 |
|
|
3,717,531 |
|
|
3,851,558 |
|
|
3,672,311 |
|
Total
deposits |
$ |
7,204,287 |
|
|
$ |
6,893,731 |
|
|
$ |
6,428,414 |
|
|
$ |
6,523,227 |
|
|
$ |
6,414,001 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Borrowings |
$ |
913,960 |
|
|
$ |
772,561 |
|
|
$ |
548,675 |
|
|
$ |
404,907 |
|
|
$ |
292,847 |
|
Subordinated
debentures (net of debt issuance costs) |
153,205 |
|
|
153,129 |
|
|
153,053 |
|
|
152,977 |
|
|
152,902 |
|
Total
stockholders' equity |
1,165,588 |
|
|
1,160,448 |
|
|
1,143,092 |
|
|
1,131,968 |
|
|
1,113,524 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended |
|
Dec. 31, |
|
|
Sep. 30, |
|
|
Jun. 30, |
|
|
Mar. 31, |
|
|
Dec. 31, |
|
|
2022 |
|
|
2022 |
|
|
2022 |
|
|
2022 |
|
|
2021 |
|
|
(dollars in
thousands, except for per share data) |
Net
interest income |
$ |
78,009 |
|
|
$ |
78,161 |
|
|
$ |
75,591 |
|
|
$ |
70,358 |
|
|
$ |
70,461 |
|
Provision
for credit losses |
3,300 |
|
|
10,000 |
|
|
3,000 |
|
|
1,450 |
|
|
815 |
|
Net interest
income after provision for credit losses |
74,709 |
|
|
68,161 |
|
|
72,591 |
|
|
68,908 |
|
|
69,646 |
|
Noninterest income |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Deposit,
loan and other income |
1,894 |
|
|
1,969 |
|
|
1,866 |
|
|
1,743 |
|
|
1,525 |
|
Income on
bank owned life insurance |
1,528 |
|
|
1,521 |
|
|
1,342 |
|
|
1,206 |
|
|
1,244 |
|
Net gains on
sale of loans held-for-sale |
176 |
|
|
262 |
|
|
556 |
|
|
701 |
|
|
1,139 |
|
Net losses
gains on equity securities |
(90 |
) |
|
(430 |
) |
|
(405 |
) |
|
(596 |
) |
|
(131 |
) |
Total
noninterest income |
3,508 |
|
|
3,322 |
|
|
3,359 |
|
|
3,054 |
|
|
3,777 |
|
Noninterest expenses |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Salaries and
employee benefits |
21,676 |
|
|
20,882 |
|
|
19,519 |
|
|
18,640 |
|
|
16,483 |
|
Occupancy
and equipment |
2,603 |
|
|
2,600 |
|
|
2,733 |
|
|
1,929 |
|
|
2,762 |
|
FDIC
insurance |
830 |
|
|
720 |
|
|
725 |
|
|
606 |
|
|
625 |
|
Professional
and consulting |
2,157 |
|
|
1,980 |
|
|
2,124 |
|
|
1,792 |
|
|
1,996 |
|
Marketing
and advertising |
454 |
|
|
461 |
|
|
426 |
|
|
351 |
|
|
454 |
|
Information
technology and communications |
2,694 |
|
|
2,747 |
|
|
2,801 |
|
|
2,866 |
|
|
3,058 |
|
Amortization
of core deposit intangible |
409 |
|
|
409 |
|
|
434 |
|
|
433 |
|
|
483 |
|
Increase in
value of acquisition price |
- |
|
|
- |
|
|
833 |
|
|
683 |
|
|
- |
|
Other
expenses |
2,489 |
|
|
2,344 |
|
|
2,108 |
|
|
1,930 |
|
|
2,223 |
|
Total
noninterest expenses |
33,312 |
|
|
32,143 |
|
|
31,703 |
|
|
29,230 |
|
|
28,084 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income before income tax expense |
44,905 |
|
|
39,340 |
|
|
44,247 |
|
|
42,732 |
|
|
45,339 |
|
Income tax
expense |
12,348 |
|
|
10,425 |
|
|
11,889 |
|
|
11,351 |
|
|
12,301 |
|
Net
income |
$ |
32,557 |
|
|
$ |
28,915 |
|
|
$ |
32,358 |
|
|
$ |
31,381 |
|
|
$ |
33,038 |
|
Preferred
dividends |
1,510 |
|
|
1,509 |
|
|
1,509 |
|
|
1,509 |
|
|
1,717 |
|
Net
income available to common stockholders |
$ |
31,047 |
|
|
$ |
27,406 |
|
|
$ |
30,849 |
|
|
$ |
29,872 |
|
|
$ |
31,321 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted
average diluted common shares outstanding |
39,378,137 |
|
|
39,320,674 |
|
|
39,481,689 |
|
|
39,727,606 |
|
|
39,792,937 |
|
Diluted
EPS |
$ |
0.79 |
|
|
$ |
0.70 |
|
|
$ |
0.78 |
|
|
$ |
0.75 |
|
|
$ |
0.79 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reconciliation of GAAP Earnings to Pre-tax and
Pre-provision Net Revenue |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net
income |
$ |
32,557 |
|
|
$ |
28,915 |
|
|
$ |
32,358 |
|
|
$ |
31,381 |
|
|
$ |
33,038 |
|
Income tax
expense |
12,348 |
|
|
10,425 |
|
|
11,889 |
|
|
11,351 |
|
|
12,301 |
|
Provision
for credit losses |
3,300 |
|
|
10,000 |
|
|
3,000 |
|
|
1,450 |
|
|
815 |
|
Pre-tax and pre-provision net revenue |
$ |
48,205 |
|
|
$ |
49,340 |
|
|
$ |
47,247 |
|
|
$ |
44,182 |
|
|
$ |
46,154 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Return on Assets Measures |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average
assets |
$ |
9,490,477 |
|
|
$ |
9,030,589 |
|
|
$ |
8,322,823 |
|
|
$ |
8,263,382 |
|
|
$ |
8,027,169 |
|
Return on
avg. assets |
1.36 |
% |
|
1.27 |
% |
|
1.56 |
% |
|
1.54 |
% |
|
1.63 |
% |
Return on
avg. assets (pre-tax and pre-provision) |
2.02 |
|
|
2.17 |
|
|
2.28 |
|
|
2.17 |
|
|
2.28 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended |
|
Dec.
31, |
|
|
Sep.
30, |
|
|
Jun.
30, |
|
|
Mar.
31, |
|
|
Dec.
31, |
|
|
2022 |
|
|
2022 |
|
|
2022 |
|
|
2022 |
|
|
2021 |
|
Return on Equity Measures |
(dollars in
thousands) |
Average
stockholders' equity |
$ |
1,165,588 |
|
|
$ |
1,160,448 |
|
|
$ |
1,143,097 |
|
|
$ |
1,131,968 |
|
|
$ |
1,113,524 |
|
Less:
average preferred stock |
(110,927 |
) |
|
(110,927 |
) |
|
(110,927 |
) |
|
(110,927 |
) |
|
(110,927 |
) |
Average
common equity |
$ |
1,054,661 |
|
|
$ |
1,049,521 |
|
|
$ |
1,032,170 |
|
|
$ |
1,021,041 |
|
|
$ |
1,002,597 |
|
Less:
average intangible assets |
(215,951 |
) |
|
(216,360 |
) |
|
(216,786 |
) |
|
(217,219 |
) |
|
(217,685 |
) |
Average
tangible common equity |
$ |
838,710 |
|
|
$ |
833,161 |
|
|
$ |
815,384 |
|
|
$ |
803,822 |
|
|
$ |
784,912 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Return on
avg. common equity (GAAP) |
11.68 |
% |
|
10.36 |
% |
|
11.99 |
% |
|
11.87 |
% |
|
12.39 |
% |
Return on
avg. tangible common equity ("TCE") (non-GAAP) (1) |
14.82 |
|
|
13.19 |
|
|
15.32 |
|
|
15.22 |
|
|
16.00 |
|
Return on
avg. tangible common equity (pre-tax, pre-provision, pre-merger
charges) |
22.94 |
|
|
23.63 |
|
|
23.39 |
|
|
22.44 |
|
|
23.50 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Efficiency Measures |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
noninterest expenses |
$ |
33,312 |
|
|
$ |
32,143 |
|
|
$ |
31,703 |
|
|
$ |
29,230 |
|
|
$ |
28,084 |
|
Amortization
of core deposit intangibles |
(409 |
) |
|
(409 |
) |
|
(434 |
) |
|
(433 |
) |
|
(483 |
) |
Operating
noninterest expense |
$ |
32,903 |
|
|
$ |
31,734 |
|
|
$ |
31,269 |
|
|
$ |
28,797 |
|
|
$ |
27,601 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net interest
income (tax equivalent basis) |
$ |
78,773 |
|
|
$ |
78,850 |
|
|
$ |
76,146 |
|
|
$ |
70,842 |
|
|
$ |
70,890 |
|
Noninterest
income |
3,508 |
|
|
3,322 |
|
|
3,359 |
|
|
3,054 |
|
|
3,777 |
|
Net losses
(gains) on equity securities |
90 |
|
|
430 |
|
|
405 |
|
|
596 |
|
|
131 |
|
Operating
revenue |
$ |
82,371 |
|
|
$ |
82,602 |
|
|
$ |
79,910 |
|
|
$ |
74,492 |
|
|
$ |
74,798 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating
efficiency ratio (non-GAAP) (2) |
39.9 |
% |
|
38.4 |
% |
|
39.1 |
% |
|
38.7 |
% |
|
36.9 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net
Interest Margin |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average
interest-earning assets |
$ |
8,972,063 |
|
|
$ |
8,500,316 |
|
|
$ |
7,807,445 |
|
|
$ |
7,753,881 |
|
|
$ |
7,508,973 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net interest
income (tax equivalent basis) |
$ |
78,773 |
|
|
$ |
78,850 |
|
|
$ |
76,146 |
|
|
$ |
70,842 |
|
|
$ |
70,890 |
|
Impact of
purchase accounting fair value marks |
(837 |
) |
|
(885 |
) |
|
(1,014 |
) |
|
(1,179 |
) |
|
(1,674 |
) |
Adjusted net
interest income (tax equivalent basis) |
$ |
77,936 |
|
|
$ |
77,965 |
|
|
$ |
75,132 |
|
|
$ |
69,663 |
|
|
$ |
69,216 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net interest
margin (GAAP) |
3.48 |
% |
|
3.68 |
% |
|
3.91 |
% |
|
3.71 |
% |
|
3.75 |
% |
Adjusted net
interest margin (non-GAAP) (3) |
3.45 |
|
|
3.64 |
|
|
3.86 |
|
|
3.64 |
|
|
3.66 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(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 |
|
Dec.
31, |
|
|
Sep.
30, |
|
|
Jun.
30, |
|
|
Mar.
31, |
|
|
Dec.
31, |
|
|
2022 |
|
|
2022 |
|
|
2022 |
|
|
2022 |
|
|
2021 |
|
Capital Ratios and Book Value per Share |
(dollars in
thousands, except for per share data) |
Stockholders
equity |
$ |
1,178,751 |
|
|
$ |
1,148,295 |
|
|
$ |
1,143,147 |
|
|
$ |
1,138,519 |
|
|
$ |
1,124,212 |
|
Less:
preferred stock |
(110,927 |
) |
|
(110,927 |
) |
|
(110,927 |
) |
|
(110,927 |
) |
|
(110,927 |
) |
Common
equity |
$ |
1,067,824 |
|
|
$ |
1,037,368 |
|
|
$ |
1,032,220 |
|
|
$ |
1,027,592 |
|
|
$ |
1,013,285 |
|
Less:
intangible assets |
(215,684 |
) |
|
(216,093 |
) |
|
(216,502 |
) |
|
(216,936 |
) |
|
(217,369 |
) |
Tangible
common equity |
$ |
852,140 |
|
|
$ |
821,275 |
|
|
$ |
815,718 |
|
|
$ |
810,656 |
|
|
$ |
795,916 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
assets |
$ |
9,644,948 |
|
|
$ |
9,478,252 |
|
|
$ |
8,841,506 |
|
|
$ |
8,334,301 |
|
|
$ |
8,129,480 |
|
Less:
intangible assets |
(215,684 |
) |
|
(216,093 |
) |
|
(216,502 |
) |
|
(216,936 |
) |
|
(217,369 |
) |
Tangible
assets |
$ |
9,429,264 |
|
|
$ |
9,262,159 |
|
|
$ |
8,625,004 |
|
|
$ |
8,117,365 |
|
|
$ |
7,912,111 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Common
shares outstanding |
39,243,123 |
|
|
39,243,123 |
|
|
39,243,123 |
|
|
39,518,411 |
|
|
39,568,090 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Common
equity ratio (GAAP) |
11.07 |
% |
|
10.94 |
% |
|
11.67 |
% |
|
12.33 |
% |
|
12.46 |
% |
Tangible
common equity ratio (non-GAAP) (4) |
9.04 |
|
|
8.87 |
|
|
9.46 |
|
|
9.99 |
|
|
10.06 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Regulatory
capital ratios (Bancorp): |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Leverage
ratio |
10.68 |
% |
|
10.95 |
% |
|
11.63 |
% |
|
11.57 |
% |
|
11.65 |
% |
Common
equity Tier 1 risk-based ratio |
10.30 |
|
|
10.20 |
|
|
10.63 |
|
|
10.69 |
|
|
10.64 |
|
Risk-based
Tier 1 capital ratio |
11.66 |
|
|
11.58 |
|
|
12.11 |
|
|
12.21 |
|
|
12.19 |
|
Risk-based
total capital ratio |
14.45 |
|
|
14.45 |
|
|
15.09 |
|
|
15.25 |
|
|
15.26 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Regulatory
capital ratios (Bank): |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Leverage
ratio |
10.64 |
% |
|
10.91 |
% |
|
11.61 |
% |
|
11.41 |
% |
|
11.43 |
% |
Common
equity Tier 1 risk-based ratio |
11.60 |
|
|
11.53 |
|
|
12.08 |
|
|
12.04 |
|
|
11.96 |
|
Risk-based
Tier 1 capital ratio |
11.60 |
|
|
11.53 |
|
|
12.08 |
|
|
12.04 |
|
|
11.96 |
|
Risk-based
total capital ratio |
13.02 |
|
|
13.00 |
|
|
13.55 |
|
|
13.55 |
|
|
13.44 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Book value
per share (GAAP) |
$ |
27.21 |
|
|
$ |
26.43 |
|
|
$ |
26.30 |
|
|
$ |
26.00 |
|
|
$ |
25.61 |
|
Tangible
book value per share (non-GAAP) (5) |
21.71 |
|
|
20.93 |
|
|
20.79 |
|
|
20.51 |
|
|
20.12 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net
Loan (Recoveries) Charge-Off Detail |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net loan
charge-offs (recoveries): |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Charge-offs |
$ |
4,456 |
|
|
$ |
413 |
|
|
$ |
302 |
|
|
$ |
274 |
|
|
$ |
458 |
|
Recoveries |
- |
|
|
(53 |
) |
|
(32 |
) |
|
(32 |
) |
|
(217 |
) |
Net loan
charge-offs |
$ |
4,456 |
|
|
$ |
360 |
|
|
$ |
270 |
|
|
$ |
242 |
|
|
$ |
241 |
|
Net loan
charge-offs as a % of average loans receivable (annualized) |
0.22 |
% |
|
0.02 |
% |
|
0.02 |
% |
|
0.01 |
% |
|
0.01 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Asset Quality |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Nonaccrual
loans |
$ |
44,454 |
|
|
$ |
57,477 |
|
|
$ |
60,756 |
|
|
$ |
59,403 |
|
|
$ |
61,700 |
|
OREO |
264 |
|
|
264 |
|
|
316 |
|
|
316 |
|
|
- |
|
Nonperforming assets |
$ |
44,718 |
|
|
$ |
57,741 |
|
|
$ |
61,072 |
|
|
$ |
59,719 |
|
|
$ |
61,700 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Allowance
for credit losses - loans ("ACL") |
90,513 |
|
|
91,717 |
|
|
82,739 |
|
|
80,070 |
|
|
78,773 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loans
receivable |
$ |
8,099,689 |
|
|
$ |
7,900,450 |
|
|
$ |
7,274,573 |
|
|
$ |
6,979,595 |
|
|
$ |
6,828,622 |
|
Less: PPP
loans |
11,374 |
|
|
11,458 |
|
|
18,004 |
|
|
54,301 |
|
|
93,057 |
|
Loans
receivable (excluding PPP loans) |
$ |
8,088,315 |
|
|
$ |
7,888,992 |
|
|
$ |
7,256,569 |
|
|
$ |
6,925,294 |
|
|
$ |
6,735,565 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Nonaccrual
loans as a % of loans receivable |
0.55 |
% |
|
0.73 |
% |
|
0.84 |
% |
|
0.85 |
% |
|
0.90 |
% |
Nonperforming assets as a % of total assets |
0.46 |
|
|
0.61 |
|
|
0.69 |
|
|
0.72 |
|
|
0.76 |
|
ACL as a %
of loans receivable |
1.12 |
|
|
1.16 |
|
|
1.14 |
|
|
1.15 |
|
|
1.15 |
|
ACL as a %
of nonaccrual loans |
203.6 |
|
|
159.6 |
|
|
136.2 |
|
|
134.8 |
|
|
127.7 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(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 |
|
|
December 31, 2022 |
September 30, 2022 |
December 31, 2021 |
|
|
Average |
|
|
|
|
Average |
|
|
|
|
Average |
|
|
|
Interest-earning assets: |
Balance |
Interest |
Rate (7) |
|
Balance |
Interest |
Rate (7) |
|
Balance |
Interest |
Rate (7) |
Investment securities (1) (2) |
$ |
743,917 |
|
$ |
5,725 |
|
3.05 |
% |
|
$ |
740,394 |
|
$ |
5,434 |
|
2.91 |
% |
|
$ |
480,143 |
|
$ |
1,921 |
|
1.59 |
% |
Loans
receivable and loans held-for-sale (2) (3) (4) |
|
8,037,793 |
|
|
105,402 |
|
5.20 |
|
|
|
7,582,371 |
|
|
91,132 |
|
4.77 |
|
|
|
6,717,685 |
|
|
77,220 |
|
4.56 |
|
Federal funds sold and interest- |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
bearing deposits with banks |
|
142,489 |
|
|
1,394 |
|
3.88 |
|
|
|
135,331 |
|
|
665 |
|
1.95 |
|
|
|
291,243 |
|
|
121 |
|
0.16 |
|
Restricted investment in bank stock |
|
47,864 |
|
|
712 |
|
5.90 |
|
|
|
42,220 |
|
|
438 |
|
4.12 |
|
|
|
19,902 |
|
|
207 |
|
4.13 |
|
Total interest-earning assets |
|
8,972,063 |
|
|
113,233 |
|
5.01 |
|
|
|
8,500,316 |
|
|
97,669 |
|
4.56 |
|
|
|
7,508,973 |
|
|
79,469 |
|
4.20 |
|
Allowance for loan losses |
|
(91,621 |
) |
|
|
|
|
|
(84,307 |
) |
|
|
|
|
|
(79,074 |
) |
|
|
|
Noninterest-earning assets |
|
610,035 |
|
|
|
|
|
|
614,580 |
|
|
|
|
|
|
597,270 |
|
|
|
|
Total assets |
$ |
9,490,477 |
|
|
|
|
|
$ |
9,030,589 |
|
|
|
|
|
$ |
8,027,169 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest-bearing liabilities: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Time deposits |
$ |
2,035,362 |
|
|
11,601 |
|
2.26 |
|
|
$ |
1,525,076 |
|
|
5,396 |
|
1.40 |
|
|
|
1,204,374 |
|
|
2,717 |
|
0.90 |
|
Other interest-bearing deposits |
|
3,558,881 |
|
|
14,942 |
|
1.67 |
|
|
|
3,686,520 |
|
|
7,903 |
|
0.85 |
|
|
|
3,672,311 |
|
|
2,563 |
|
0.28 |
|
Total interest-bearing deposits |
|
5,594,243 |
|
|
26,543 |
|
1.88 |
|
|
|
5,211,596 |
|
|
13,299 |
|
1.01 |
|
|
|
4,876,685 |
|
|
5,280 |
|
0.43 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Borrowings |
|
913,960 |
|
|
5,665 |
|
2.46 |
|
|
|
772,561 |
|
|
3,297 |
|
1.69 |
|
|
|
292,847 |
|
|
1,102 |
|
1.49 |
|
Subordinated debentures |
|
153,205 |
|
|
2,217 |
|
5.74 |
|
|
|
153,129 |
|
|
2,196 |
|
5.69 |
|
|
|
152,902 |
|
|
2,167 |
|
5.62 |
|
Finance lease |
|
1,760 |
|
|
35 |
|
7.89 |
|
|
|
1,813 |
|
|
27 |
|
5.91 |
|
|
|
1,967 |
|
|
30 |
|
6.05 |
|
Total interest-bearing liabilities |
|
6,663,168 |
|
|
34,460 |
|
2.05 |
|
|
|
6,139,099 |
|
|
18,819 |
|
1.22 |
|
|
|
5,324,401 |
|
|
8,579 |
|
0.64 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Noninterest-bearing demand deposits |
|
1,610,044 |
|
|
|
|
|
|
1,682,135 |
|
|
|
|
|
|
1,537,316 |
|
|
|
|
Other liabilities |
|
51,677 |
|
|
|
|
|
|
48,907 |
|
|
|
|
|
|
51,928 |
|
|
|
|
Total noninterest-bearing liabilities |
|
1,661,721 |
|
|
|
|
|
|
1,731,042 |
|
|
|
|
|
|
1,589,244 |
|
|
|
|
Stockholders' equity |
|
1,165,588 |
|
|
|
|
|
|
1,160,448 |
|
|
|
|
|
|
1,113,524 |
|
|
|
|
Total liabilities and stockholders' equity |
$ |
9,490,477 |
|
|
|
|
|
$ |
9,030,589 |
|
|
|
|
|
$ |
8,027,169 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net interest income (tax equivalent basis) |
|
|
78,773 |
|
|
|
|
|
|
78,850 |
|
|
|
|
|
|
70,890 |
|
|
|
Net interest spread (5) |
|
|
2.96 |
% |
|
|
|
3.34 |
% |
|
|
|
3.56 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net interest margin (6) |
|
|
3.48 |
% |
|
|
|
3.68 |
% |
|
|
|
3.75 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Tax equivalent adjustment |
|
|
(764 |
) |
|
|
|
|
|
(689 |
) |
|
|
|
|
|
(429 |
) |
|
|
Net interest income |
|
$ |
78,009 |
|
|
|
|
|
$ |
78,161 |
|
|
|
|
|
$ |
70,461 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(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. |
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