Exhibit 99.1
ConnectOne Bancorp, Inc. Reports a 14.3% Increase in First Quarter Net Income
ENGLEWOOD CLIFFS, N.J., April 27, 2017 (GLOBE NEWSWIRE) -- ConnectOne Bancorp, Inc. (Nasdaq:CNOB) (the “Company” or “ConnectOne”), parent company of ConnectOne Bank (the “Bank”), today reported net income of $11.9 million for the first quarter of 2017, a 14.3% increase from $10.4 million earned during the first quarter of 2016. Diluted earnings per share increased to $0.37 during the current quarter versus $0.34 earned in the prior-year first quarter. During the sequential fourth quarter 2016, the Company reported a loss of $(2.0) million, or $(0.07) per diluted share, due to a $24.0 million charge largely related to transferring the Bank’s taxi medallion portfolio to the held-for-sale category.
Frank Sorrentino, ConnectOne’s Chairman and CEO stated, “ConnectOne has maintained solid momentum executing against key operating objectives and we’re off to a great start in 2017 with strong first quarter results. Gross loan fundings during the quarter were a robust $340 million, strengthened by an increase in lending opportunities due, in part, to escalating regulatory and capacity pressures on our in-market competition. Our loans receivable portfolio increased by nearly $100 million from year-end 2016, still strong, but impacted by anticipated borrower pay-downs in the construction portfolio and pay-offs. Return on average assets reached 1.10%, our return on average tangible equity was in excess of 12%, and our net interest margin widened to 3.40% under GAAP, and to 3.33% excluding the benefit of purchase accounting, reversing a long downward trend due to the protracted low interest rate environment. Our efficiency ratio increased, reflecting typical seasonality for the first quarter, to 44.0%, but is still indicative of an extraordinarily efficient infrastructure. We expect this ratio to remain in the low 40% range. Our outlook for 2017 is positive, as we remain well-positioned to capitalize on organic growth opportunities throughout the New York metropolitan region.”
Operating Results
Fully taxable equivalent net interest income for the first quarter of 2017 was $34.0 million, a decrease of $0.2 million, or 0.5%, from the fourth quarter of 2016, due to 2 fewer days in the current quarter, partially offset by a 4 basis-point widening of the net interest margin to 3.40% from 3.36%. Included in net interest income was accretion and amortization of purchase accounting adjustments of $0.6 million and $1.0 million during the first quarter of 2017 and fourth quarter of 2016, respectively. Excluding these purchase accounting adjustments, the adjusted net interest margin was 3.33% in the first quarter of 2017, widening by 6 basis-points from the fourth quarter 2016 adjusted net interest margin of 3.27%. The increase in the adjusted net interest margin was primarily attributable to higher short-term rates, an improved mix of interest-earning assets and stable rates paid on deposits. Fully taxable equivalent net interest income for the first quarter of 2017 also reflected an increase of $2.0 million, or 6.2%, from the first quarter of 2016, resulting from an 8.7% increase in interest earning assets, partially offset by a 5 basis-point contraction of the net interest margin to 3.40% from 3.45%. Included in net interest income was accretion and amortization of purchase accounting adjustments of $0.6 million and $1.3 million during the first quarter of 2017 and first quarter of 2016, respectively. Excluding these purchase accounting adjustments, the adjusted net interest margin was 3.33% in the first quarter of 2017, widening by 2 basis-points from the first quarter of 2016 adjusted net interest margin of 3.31%. The slight increase in the adjusted net interest margin was primarily attributable to improved mix and rates on our interest-earning assets.
Noninterest income totaled $3.0 million in the first quarter of 2017, $1.6 million in the fourth quarter of 2016 and $1.2 million in the first quarter of 2016. The first quarter of 2017 included net securities gains of $1.6 million. There were no net securities gains during both the fourth quarter of 2016 and first quarter of 2016. Excluding the securities gains, noninterest income decreased approximately $0.2 million from the sequential quarter and increased $0.2 million from the prior year first quarter. The decrease from the sequential quarter was primarily attributable to decreases in deposit fees which are typically lower in the first quarter due to seasonal factors. The increase from the prior year first quarter was primarily attributable to an increase in deposit, loan and other income and BOLI income. Noninterest income also includes annuities and life insurance commissions.
Noninterest expenses totaled $18.2 million for the first quarter of 2017, up $2.9 million from $15.3 million for the fourth quarter of 2016 and up $3.9 million from $14.4 million for the first quarter of 2016. The increase from the sequential quarter was mainly attributable to an increase in the taxi medallion loans held-for-sale valuation allowance of $2.6 million. In addition, increases in salaries and employee benefits expense ($0.3 million), occupancy and equipment expenses ($0.1 million) and other expenses ($0.1 million), partially offset by decreases in professional and consulting expenses ($0.2 million) contributed to the overall increase in noninterest expenses from the fourth quarter of 2016. The increase from the prior year first quarter was mainly attributable to the aforementioned valuation allowance. In addition, increases in salaries and employee benefits ($0.6 million), FDIC insurance premiums ($0.3 million), data processing ($0.1 million), marketing and advertising expenses ($0.1 million) and other expense ($0.2 million) contributed to the overall increase in noninterest expense from the first quarter of 2016. The increases over the prior year first quarter were the result of increased levels of business and staff resulting from organic growth.
Income tax expense was $4.9 million for the first quarter of 2017, compared to an income tax benefit of $(3.4) million for the fourth quarter of 2016 and income tax expense of $4.8 million for the first quarter of 2016. Included in income tax expense for the first quarter of 2017 is a benefit of $133 thousand which resulted from the effect of implementing ASU 2016-09, which relates to the recognition of excess tax benefits in the income statement (formerly through equity) that result from employee share-based payment awards. The effective tax rate for the current quarter was 29.3% versus 31.5% for the prior-year quarter. Excluding any changes to the taxi medallion valuation allowance, the effective tax rate for 2017 is expected to be maintained in the low 30% range.
Asset Quality
The provision for loan and lease losses decreased to $1.1 million in the first quarter of 2017 from $25.2 million in the fourth quarter of 2016, and from $3.0 million in the first quarter of 2016. The decrease from the sequential quarter was largely attributable to additional reserves of approximately $24.0 million specifically allocated to the Bank’s taxi medallion portfolio that occurred during the fourth quarter of 2016, and reflected solid asset quality metrics throughout the Bank’s growing loan receivable portfolio. The decrease from the prior year quarter was largely attributable to decreases in specific reserves.
As of March 31, 2017, loans held-for-sale included loans secured by taxi medallions totaling $61.3 million (net of a valuation allowance of $2.6 million), compared to $65.6 million as of December 31, 2016. The decrease was primarily attributable to the aforementioned valuation allowance, a payoff of two corporate medallions for $1.1 million, and debt service applied to loan carrying values.
Nonperforming assets, which includes nonaccrual loans and other real estate owned, were $72.4 million at March 31, 2017, $69.4 million at December 31, 2016 and $23.1 million at March 31, 2016. Included in nonperforming assets were taxi medallion loans, totaling $59.0 million at March 31, 2017, $63.0 million at December 31, 2016 and $1.9 million at March 31, 2016. Nonperforming assets as a percent of total assets were 1.62% at March 31, 2017, 1.57% at December 31, 2016, and 0.57% at March 31, 2016. Excluding the taxi medallion loans, nonaccrual loans increased to $12.8 million at March 31, 2017, from $5.7 million at December 31, 2016 and decreased from $19.6 million at March 31, 2016. Nonaccrual loans as a percent of loans receivable, excluding taxi medallion loans, were 0.36% at March 31, 2017, 0.16% at December 31, 2017 and 0.62% at March 31, 2016.
Annualized net charge-offs were (0.01)% (a net recovery) for the first quarter of 2017, 4.23% for the fourth quarter of 2016, and 0.06% for the first quarter of 2016. The allowance for loan and lease losses represented 0.75%, 0.74%, and 0.89% of loans receivable as of March 31, 2017, December 31, 2016 and March 31, 2016, respectively. The allowance as a percentage of nonaccruals, excluding taxi medallion loans, was 210.3% as of March 31, 2017, 449.0% as of December 31, 2016 and 117.9% as of March 31, 2016.
Selected Balance Sheet Items
At March 31, 2017, the Company’s total assets were $4.5 billion, an increase of $34.5 million from December 31, 2016. Total loans at March 31, 2017 were $3.6 billion, reflecting net loan growth (loan originations less pay-downs and pay-offs) of $96 million from December 31, 2016, primarily attributable to increases in multifamily ($85 million), other commercial real estate ($37 million) and residential real estate ($10 million), offset by decreases in construction ($26 million) and commercial and industrial ($12 million).
The Company’s stockholders’ equity was $540 million at March 31, 2017, an increase of $9.2 million from December 31, 2016. The increase in stockholders’ equity was primarily attributable to an increase of $9.5 million in retained earnings, and approximately $0.4 million of equity issuance related to stock-based compensation, partially offset by an increase to accumulated other comprehensive loss of $0.4 million. As of March 31, 2017, the Company’s tangible common equity ratio and tangible book value per share were 9.08% and $12.23, respectively. As of December 31, 2016, the tangible common equity ratio and tangible book value per share were 8.93% and $11.96, respectively. Total goodwill and other intangible assets were approximately $149 million as of March 31, 2017 and December 31, 2016, respectively.
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 financial measures including return on average tangible assets, return on average tangible common equity, operating efficiency ratio, adjusted net interest margin, tangible common equity ratio and tangible book value per common share. 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, and facilitates comparisons with the performance of peers. Reconciliations of non-GAAP disclosures used in this earnings release to the comparable GAAP measures are provided in the accompanying tables.
About ConnectOne Bancorp, Inc.
ConnectOne is a New Jersey corporation and a registered bank holding company pursuant to the Bank Holding Company Act of 1956, as amended, and serves as the holding company for ConnectOne Bank ("the Bank"). The Bank is a community-based, full-service New Jersey-chartered commercial bank that was founded in 2005. The Bank operates from its headquarters located at 301 Sylvan Avenue in the Borough of Englewood Cliffs, Bergen County, New Jersey, and through its 20 other banking offices.
For more information visit https://www.ConnectOneBank.com/.
Forward-Looking Statements
This news release contains certain forward-looking statements which are based on certain assumptions and describe future plans, strategies and expectations of the Company. These forward-looking statements are generally identified by use of the words "believe," "expect," "intend," "anticipate," "estimate," "project," or similar expressions. The Company's ability to predict results or the actual effect of future plans or strategies is inherently uncertain. Factors which could have a material adverse effect on the operations of the Company and its subsidiaries include, but are not limited to, those factors set forth in Item 1A – Risk Factors of the Company’s Annual Report on Form 10-K, as filed with the Securities Exchange Commission, 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 and accounting principles and guidelines. 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.
| | | | | | | |
| CONNECTONE BANCORP, INC. AND SUBSIDIARIES | |
| CONSOLIDATED CONDENSED STATEMENTS OF FINANCIAL CONDITION | |
| (dollars in thousands) | |
| | March 31, | | December 31, | | March 31, | |
| | 2017 | | 2016 | | 2016 | |
| | (unaudited) | | | | (unaudited) | |
| ASSETS | | | | | | |
| Cash and due from banks | $ | 35,867 | | | $ | 37,150 | | | $ | 34,603 | | |
| Interest-bearing deposits with banks | | 126,002 | | | | 163,249 | | | | 83,656 | | |
| Cash and cash equivalents | | 161,869 | | | | 200,399 | | | | 118,259 | | |
| | | | | | | |
| Investment securities: | | | | | | |
| Available-for-sale | | 352,476 | | | | 353,290 | | | | 191,331 | | |
| Held-to-maturity (fair value of $ -, $ -, $229,470) | | - | | | | - | | | | 219,373 | | |
| | | | | | | |
| Loans held-for-sale (net of $2,600, $ -, $ - valuation allowance) | | 62,255 | | | | 78,005 | | | | - | | |
| | | | | | | |
| Loans receivable | | 3,571,663 | | | | 3,475,832 | | | | 3,263,813 | | |
| Less: Allowance for loan and lease losses | | 26,901 | | | | 25,744 | | | | 29,074 | | |
| Net loans receivable | | 3,544,762 | | | | 3,450,088 | | | | 3,234,739 | | |
| | | | | | | |
| Investment in restricted stock, at cost | | 24,985 | | | | 24,310 | | | | 31,487 | | |
| Bank premises and equipment, net | | 22,259 | | | | 22,075 | | | | 22,652 | | |
| Accrued interest receivable | | 12,701 | | | | 12,965 | | | | 12,604 | | |
| Bank owned life insurance | | 99,063 | | | | 98,359 | | | | 79,412 | | |
| Other real estate owned | | 580 | | | | 626 | | | | 1,696 | | |
| Goodwill | | 145,909 | | | | 145,909 | | | | 145,909 | | |
| Core deposit intangibles | | 2,895 | | | | 3,088 | | | | 3,691 | | |
| Other assets | | 31,062 | | | | 37,234 | | | | 29,847 | | |
| Total assets | $ | 4,460,816 | | | $ | 4,426,348 | | | $ | 4,091,000 | | |
| | | | | | | |
| LIABILITIES | | | | | | |
| Deposits: | | | | | | |
| Noninterest-bearing | $ | 671,183 | | | $ | 694,977 | | | $ | 614,507 | | |
| Interest-bearing | | 2,684,294 | | | | 2,649,294 | | | | 2,278,564 | | |
| Total deposits | | 3,355,477 | | | | 3,344,271 | | | | 2,893,071 | | |
| Borrowings | | 491,226 | | | | 476,280 | | | | 646,501 | | |
| Subordinated debentures (net of $580, $621, $763 in debt issuance costs) | | 54,575 | | | | 54,534 | | | | 54,392 | | |
| Other liabilities | | 19,261 | | | | 20,231 | | | | 22,309 | | |
| Total liabilities | | 3,920,539 | | | | 3,895,316 | | | | 3,616,273 | | |
| | | | | | | |
| COMMITMENTS AND CONTINGENCIES | | | | | | |
| | | | | | | |
| STOCKHOLDERS' EQUITY | | | | | | |
| Common stock | | 412,546 | | | | 412,726 | | | | 374,287 | | |
| Additional paid-in capital | | 11,796 | | | | 11,407 | | | | 9,324 | | |
| Retained earnings | | 135,939 | | | | 126,462 | | | | 112,663 | | |
| Treasury stock | | (16,717 | ) | | | (16,717 | ) | | | (16,717 | ) | |
| Accumulated other comprehensive loss | | (3,287 | ) | | | (2,846 | ) | | | (4,830 | ) | |
| Total stockholders' equity | | 540,277 | | | | 531,032 | | | | 474,727 | | |
| Total liabilities and stockholders' equity | $ | 4,460,816 | | | $ | 4,426,348 | | | $ | 4,091,000 | | |
| | | | | | | |
| | | | | | | | |
| CONNECTONE BANCORP, INC. AND SUBSIDIARIES | |
| CONSOLIDATED STATEMENTS OF INCOME | |
| (dollars in thousands, except for per share data) | |
| | | | | | | | |
| | | Three Months Ended | |
| | | 03/31/17 | | 12/31/16 | | 03/31/16 | |
| Interest income | | | | | | | |
| Interest and fees on loans | | $ | 38,006 | | $ | 38,600 | | | $ | 35,017 | |
| Interest and dividends on investment securities: | | | | | | | |
| Taxable | | | 1,548 | | | 1,389 | | | | 2,140 | |
| Tax-exempt | | | 954 | | | 959 | | | | 883 | |
| Dividends | | | 330 | | | 336 | | | | 352 | |
| Interest on federal funds sold and other short-term investments | | | 246 | | | 215 | | | | 134 | |
| Total interest income | | | 41,084 | | | 41,499 | | | | 38,526 | |
| Interest expense | | | | | | | |
| Deposits | | | 5,109 | | | 5,135 | | | | 3,939 | |
| Borrowings | | | 2,834 | | | 2,957 | | | | 3,267 | |
| Total interest expense | | | 7,943 | | | 8,092 | | | | 7,206 | |
| | | | | | | | |
| Net interest income | | | 33,141 | | | 33,407 | | | | 31,320 | |
| Provision for loan and lease losses | | | 1,100 | | | 25,200 | | | | 3,000 | |
| Net interest income after provision for loan and lease losses | | | 32,041 | | | 8,207 | | | | 28,320 | |
| | | | | | | | |
| Noninterest income | | | | | | | |
| Annuities and insurance commissions | | | 39 | | | 51 | | | | 40 | |
| Income on bank owned life insurance | | | 703 | | | 715 | | | | 612 | |
| Net gains on sale of loans held-for-sale | | | 21 | | | 86 | | | | 35 | |
| Deposit, loan and other income | | | 643 | | | 721 | | | | 515 | |
| Net gains on sale of investment securities | | | 1,596 | | | - | | | | - | |
| Total noninterest income | | | 3,002 | | | 1,573 | | | | 1,202 | |
| | | | | | | | |
| Noninterest expenses | | | | | | | |
| Salaries and employee benefits | | | 8,206 | | | 7,888 | | | | 7,599 | |
| Occupancy and equipment | | | 2,255 | | | 2,122 | | | | 2,247 | |
| FDIC insurance | | | 895 | | | 985 | | | | 595 | |
| Professional and consulting | | | 718 | | | 901 | | | | 711 | |
| Marketing and advertising | | | 256 | | | 222 | | | | 184 | |
| Data processing | | | 1,149 | | | 1,106 | | | | 1,024 | |
| Amortization of core deposit intangible | | | 193 | | | 193 | | | | 217 | |
| Increase in valuation allowance, loans held-for-sale | | | 2,600 | | | - | | | | - | |
| Other expenses | | | 1,977 | | | 1,835 | | | | 1,776 | |
| Total noninterest expenses | | | 18,249 | | | 15,252 | | | | 14,353 | |
| | | | | | | | |
| Income (loss) before income tax expense | | | 16,794 | | | (5,472 | ) | | | 15,169 | |
| Income tax expense (benefit) | | | 4,914 | | | (3,448 | ) | | | 4,778 | |
| Net income (loss) | | | 11,880 | | | (2,024 | ) | | | 10,391 | |
| Less: Preferred stock dividends | | | - | | | - | | | | 22 | |
| Net income (loss) available to common stockholders | | $ | 11,880 | | $ | (2,024 | ) | | $ | 10,369 | |
| | | | | | | | |
| Earnings per common share: | | | | | | | |
| Basic | | $ | 0.37 | | $ | (0.07 | ) | | $ | 0.35 | |
| Diluted | | | 0.37 | | | (0.07 | ) | | | 0.34 | |
| | | | | | | | |
| Dividends per common share | | $ | 0.075 | | $ | 0.075 | | | $ | 0.075 | |
| | | | | | | | |
| 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. | |
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| CONNECTONE BANCORP, INC. | |
| SUPPLEMENTAL GAAP AND NON-GAAP FINANCIAL MEASURES | |
| (dollars in thousands, except share data) | |
| | As of | |
| | Mar. 31, | | Dec. 31, | | Sept. 30, | | June 30, | | Mar. 31, | |
| | 2017 | | 2016 | | 2016 | | 2016 | | 2016 | |
| Selected Financial Data | | | | | | | | | | |
| Total assets | $ | 4,460,816 | | | $ | 4,426,348 | | | $ | 4,327,804 | | | $ | 4,262,914 | | | $ | 4,091,000 | | |
| Loans receivable: | | | | | | | | | | |
| Commercial | | 541,690 | | | | 554,065 | | | | 644,430 | | | | 630,425 | | | | 601,708 | | |
| Commercial real estate-other | | 1,192,074 | | | | 1,154,154 | | | | 1,139,641 | | | | 1,104,214 | | | | 1,087,388 | | |
| Commercial real estate-multifamily | | 1,134,760 | | | | 1,050,067 | | | | 961,163 | | | | 967,555 | | | | 940,913 | | |
| Commercial construction | | 460,611 | | | | 486,228 | | | | 471,109 | | | | 443,277 | | | | 402,594 | | |
| Residential | | 242,883 | | | | 232,547 | | | | 229,401 | | | | 230,497 | | | | 231,319 | | |
| Consumer | | 2,811 | | | | 2,380 | | | | 2,879 | | | | 1,976 | | | | 1,851 | | |
| Gross loans | | 3,574,829 | | | | 3,479,441 | | | | 3,448,623 | | | | 3,377,944 | | | | 3,265,773 | | |
| Unearned net origination fees | | (3,166 | ) | | | (3,609 | ) | | | (3,147 | ) | | | (2,324 | ) | | | (1,960 | ) | |
| Loans receivable | | 3,571,663 | | | | 3,475,832 | | | | 3,445,476 | | | | 3,375,620 | | | | 3,263,813 | | |
| Loans held-for-sale (net of valuation allowance) | | 62,255 | | | | 78,005 | | | | 15,112 | | | | 360 | | | | - | | |
| Total loans | | 3,633,918 | | | | 3,553,837 | | | | 3,460,588 | | | | 3,375,980 | | | | 3,263,813 | | |
| | | | | | | | | | | |
| Securities available-for-sale | | 352,476 | | | | 353,290 | | | | 338,459 | | | | 208,266 | | | | 191,331 | | |
| Securities held-to-maturity | | - | | | | - | | | | - | | | | 214,718 | | | | 219,373 | | |
| Goodwill and other intangible assets | | 148,804 | | | | 148,997 | | | | 149,190 | | | | 149,383 | | | | 149,600 | | |
| Deposits: | | | | | | | | | | |
| Noninterest-bearing | | 671,183 | | | | 694,977 | | | | 655,683 | | | | 648,664 | | | | 614,508 | | |
| Interest-bearing | | 547,934 | | | | 563,740 | | | | 531,500 | | | | 523,742 | | | | 517,809 | | |
| Savings | | 188,790 | | | | 205,551 | | | | 207,717 | | | | 210,040 | | | | 219,865 | | |
| Money market | | 977,357 | | | | 911,867 | | | | 866,710 | | | | 866,643 | | | | 678,222 | | |
| Time deposits | | 970,213 | | | | 968,136 | | | | 1,007,339 | | | | 951,904 | | | | 862,667 | | |
| Total deposits | | 3,355,477 | | | | 3,344,271 | | | | 3,268,949 | | | | 3,200,993 | | | | 2,893,071 | | |
| | | | | | | | | | | |
| Borrowings | | 491,226 | | | | 476,280 | | | | 481,337 | | | | 496,414 | | | | 646,501 | | |
| Subordinated debentures (net of issuance costs) | | 54,575 | | | | 54,534 | | | | 54,490 | | | | 54,441 | | | | 54,392 | | |
| Total stockholders' equity | | 540,277 | | | | 531,032 | | | | 499,588 | | | | 484,414 | | | | 474,727 | | |
| | | | | | | | | | | |
| Quarterly Average Balances | | | | | | | | | | |
| Total assets | $ | 4,382,314 | | | $ | 4,349,961 | | | $ | 4,344,796 | | | $ | 4,212,307 | | | $ | 4,034,375 | | |
| Loans receivable: | | | | | | | | | | |
| Commercial | | 557,347 | | | | 644,263 | | | | 632,892 | | | | 626,902 | | | | 585,773 | | |
| Commercial real estate (including multifamily) | | 2,222,795 | | | | 2,130,955 | | | | 2,081,741 | | | | 2,056,263 | | | | 2,005,872 | | |
| Commercial construction | | 466,455 | | | | 479,342 | | | | 462,399 | | | | 418,769 | | | | 361,108 | | |
| Residential | | 237,418 | | | | 229,738 | | | | 229,953 | | | | 231,553 | | | | 236,404 | | |
| Consumer | | 2,460 | | | | 2,777 | | | | 2,771 | | | | 2,865 | | | | 2,670 | | |
| Gross loans | | 3,486,475 | | | | 3,487,075 | | | | 3,409,756 | | | | 3,336,352 | | | | 3,191,827 | | |
| Unearned net origination fees | | (3,304 | ) | | | (3,151 | ) | | | (2,956 | ) | | | (2,295 | ) | | | (2,397 | ) | |
| Loans receivable | | 3,483,171 | | | | 3,483,924 | | | | 3,406,800 | | | | 3,334,057 | | | | 3,189,430 | | |
| Loans held-for-sale | | 65,860 | | | | 4,549 | | | | 478 | | | | 395 | | | | 142 | | |
| Total loans | | 3,549,031 | | | | 3,488,473 | | | | 3,407,278 | | | | 3,334,452 | | | | 3,189,572 | | |
| | | | | | | | | | | |
| Securities available-for-sale | | 367,940 | | | | 351,809 | | | | 269,895 | | | | 202,103 | | | | 222,776 | | |
| Securities held-to-maturity | | - | | | | - | | | | 143,146 | | | | 218,220 | | | | 194,474 | | |
| Goodwill and other intangible assets | | 148,930 | | | | 149,123 | | | | 149,317 | | | | 149,525 | | | | 149,741 | | |
| Deposits: | | | | | | | | | | |
| Noninterest-bearing | | 655,597 | | | | 666,913 | | | | 640,323 | | | | 581,743 | | | | 609,312 | | |
| Interest-bearing | | 549,335 | | | | 534,127 | | | | 553,401 | | | | 528,954 | | | | 503,896 | | |
| Savings | | 199,000 | | | | 205,477 | | | | 211,162 | | | | 215,267 | | | | 215,491 | | |
| Money market | | 958,656 | | | | 891,764 | | | | 872,937 | | | | 791,845 | | | | 656,557 | | |
| Time deposits | | 963,976 | | | | 985,944 | | | | 1,007,530 | | | | 889,561 | | | | 807,801 | | |
| Total deposits | | 3,326,564 | | | | 3,284,225 | | | | 3,285,353 | | | | 3,007,370 | | | | 2,793,057 | | |
| | | | | | | | | | | |
| Borrowings | | 442,595 | | | | 476,925 | | | | 488,015 | | | | 639,054 | | | | 684,469 | | |
| Subordinated debentures | | 55,155 | | | | 55,155 | | | | 55,155 | | | | 55,155 | | | | 55,155 | | |
| Total stockholders' equity | | 539,544 | | | | 511,663 | | | | 495,141 | | | | 483,519 | | | | 482,503 | | |
| | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | |
| | Three Months Ended | |
| | Mar. 31, | | Dec. 31, | | Sept. 30, | | June 30, | | Mar. 31, | |
| | 2017 | | 2016 | | 2016 | | 2016 | | 2016 | |
| Net interest income | $ | 33,141 | | | $ | 33,407 | | | $ | 33,024 | | | $ | 32,394 | | | $ | 31,320 | | |
| Provision for loan and lease losses | | 1,100 | | | | 25,200 | | | | 6,750 | | | | 3,750 | | | | 3,000 | | |
| Net interest income after provision for loan and lease losses | | 32,041 | | | | 8,207 | | | | 26,274 | | | | 28,644 | | | | 28,320 | | |
| Noninterest income | | | | | | | | | | |
| Annuity and insurance commissions | | 39 | | | | 51 | | | | 68 | | | | 32 | | | | 40 | | |
| Income on bank owned life insurance | | 703 | | | | 715 | | | | 615 | | | | 616 | | | | 612 | | |
| Net gains on sale of loans held-for-sale | | 21 | | | | 86 | | | | 56 | | | | 56 | | | | 35 | | |
| Deposit, loan and other income | | 643 | | | | 721 | | | | 706 | | | | 763 | | | | 515 | | |
| Net gains on sale of investment securities | | 1,596 | | | | - | | | | 4,131 | | | | 103 | | | | - | | |
| Total noninterest income | | 3,002 | | | | 1,573 | | | | 5,576 | | | | 1,570 | | | | 1,202 | | |
| Noninterest expenses | | | | | | | | | | |
| Salaries and employee benefits | | 8,206 | | | | 7,888 | | | | 7,791 | | | | 7,753 | | | | 7,599 | | |
| Occupancy and equipment | | 2,255 | | | | 2,122 | | | | 2,049 | | | | 2,154 | | | | 2,247 | | |
| FDIC insurance | | 895 | | | | 985 | | | | 745 | | | | 615 | | | | 595 | | |
| Professional and consulting | | 718 | | | | 901 | | | | 667 | | | | 700 | | | | 711 | | |
| Marketing and advertising | | 256 | | | | 222 | | | | 293 | | | | 250 | | | | 184 | | |
| Data processing | | 1,149 | | | | 1,106 | | | | 1,002 | | | | 1,010 | | | | 1,024 | | |
| Amortization of core deposit intangible | | 193 | | | | 193 | | | | 193 | | | | 217 | | | | 217 | | |
| Increase in valuation allowance, loans held-for-sale | | 2,600 | | | | - | | | | - | | | | - | | | | - | | |
| Other expenses | | 1,977 | | | | 1,835 | | | | 1,811 | | | | 1,653 | | | | 1,776 | | |
| Total noninterest expenses | | 18,249 | | | | 15,252 | | | | 14,551 | | | | 14,352 | | | | 14,353 | | |
| | | | | | | | | | | |
| Income (loss) before income tax expense | | 16,794 | | | | (5,472 | ) | | | 17,299 | | | | 15,862 | | | | 15,169 | | |
| Income tax expense (benefit) | | 4,914 | | | | (3,448 | ) | | | 5,443 | | | | 5,003 | | | | 4,778 | | |
| Net income (loss) | $ | 11,880 | | | $ | (2,024 | ) | | $ | 11,856 | | | $ | 10,859 | | | $ | 10,391 | | |
| Less: preferred dividends | | - | | | | - | | | | - | | | | - | | | | 22 | | |
| Net income (loss) available to common stockholders | $ | 11,880 | | | $ | (2,024 | ) | | $ | 11,856 | | | $ | 10,859 | | | $ | 10,369 | | |
| Weighted average diluted shares outstanding | | 32,192,643 | | | | 30,729,359 | | | | 30,401,684 | | | | 30,340,376 | | | | 30,257,676 | | |
| Diluted EPS | $ | 0.37 | | | $ | (0.07 | ) | | $ | 0.39 | | | $ | 0.36 | | | $ | 0.34 | | |
| | | | | | | | | | | |
| Return on Assets Measures | | | | | | | | | | |
| Average assets | $ | 4,382,314 | | | $ | 4,349,961 | | | $ | 4,344,796 | | | $ | 4,212,307 | | | $ | 4,034,375 | | |
| Less: average intangible assets | | (148,930 | ) | | | (149,123 | ) | | | (149,317 | ) | | | (149,525 | ) | | | (149,741 | ) | |
| Average tangible assets | $ | 4,233,384 | | | $ | 4,200,838 | | | $ | 4,195,479 | | | $ | 4,062,782 | | | $ | 3,884,634 | | |
| Return on avg. assets (GAAP) | | 1.10 | % | | | -0.19 | % | | | 1.09 | % | | | 1.04 | % | | | 1.04 | % | |
| Return on avg. tangible assets (Non-GAAP) (1) | | 1.15 | % | | | -0.18 | % | | | 1.14 | % | | | 1.09 | % | | | 1.09 | % | |
| _____ | | | | | | | | | | |
(1) Net income excluding amortization of intangible assets divided by average tangible assets.
| |
| | |
| | |
| | Three Months Ended | |
| | Mar. 31, | | Dec. 31, | | Sept. 30, | | June 30, | | Mar. 31, | |
| | 2017
| | 2016
| | 2016
| | 2016
| | 2016
| |
| Return on Equity Measures | | | | | | | | | | |
| Average common equity | $ | 539,544 | | | $ | 511,663 | | | $ | 495,141 | | | $ | 483,519 | | | $ | 473,849 | | |
| Less: average intangible assets | | (148,930 | ) | | | (149,123 | ) | | | (149,317 | ) | | | (149,525 | ) | | | (149,741 | ) | |
| Average tangible common equity | $ | 390,614 | | | $ | 362,540 | | | $ | 345,824 | | | $ | 333,994 | | | $ | 324,108 | | |
| | | | | | | | | | | |
| Return on avg. common equity (GAAP) | | 8.93 | % | | | -1.57 | % | | | 9.53 | % | | | 9.03 | % | | | 8.80 | % | |
| Return on avg. tangible common equity (non-GAAP) (2) | | 12.45 | % | | | -2.10 | % | | | 13.77 | % | | | 13.23 | % | | | 13.03 | % | |
| | | | | | | | | | | |
| Efficiency Measures | | | | | | | | | | |
| Total noninterest expenses | $ | 18,249 | | | $ | 15,252 | | | $ | 14,551 | | | $ | 14,352 | | | $ | 14,353 | | |
| Increase in valuation allowance, loans held-for-sale | | (2,600 | ) | | | - | | | | - | | | | - | | | | - | | |
| Foreclosed property expense | | (100 | ) | | | (81 | ) | | | (37 | ) | | | 10 | | | | (167 | ) | |
| Operating noninterest expense | $ | 15,549 | | | $ | 15,171 | | | $ | 14,514 | | | $ | 14,362 | | | $ | 14,186 | | |
| | | | | | | | | | | |
| Net interest income (FTE) | $ | 33,956 | | | $ | 34,120 | | | $ | 33,762 | | | $ | 33,112 | | | $ | 31,985 | | |
| Noninterest income | | 3,002 | | | | 1,573 | | | | 5,576 | | | | 1,570 | | | | 1,202 | | |
| Net gains on sales of investment securities | | (1,596 | ) | | | - | | | | (4,131 | ) | | | (103 | ) | | | - | | |
| Operating revenue | $ | 35,362 | | | $ | 35,693 | | | $ | 35,207 | | | $ | 34,579 | | | $ | 33,187 | | |
| | | | | | | | | | | |
| Operating efficiency ratio (non-GAAP) (3) | | 44.0 | % | | | 42.5 | % | | | 41.2 | % | | | 41.5 | % | | | 42.7 | % | |
| | | | | | | | | | | |
| Net Interest Margin | | | | | | | | | | |
| Average interest-earning assets | $ | 4,053,324 | | | $ | 4,038,030 | | | $ | 4,041,020 | | | $ | 3,912,802 | | | $ | 3,728,958 | | |
| | | | | | | | | | | |
| Net interest income (FTE) | $ | 33,956 | | | $ | 34,120 | | | $ | 33,762 | | | $ | 33,112 | | | $ | 31,985 | | |
| Impact of purchase accounting fair value marks | | (649 | ) | | | (960 | ) | | | (1,045 | ) | | | (1,245 | ) | | | (1,335 | ) | |
| Adjusted net interest income | $ | 33,307 | | | $ | 33,160 | | | $ | 32,717 | | | $ | 31,867 | | | $ | 30,650 | | |
| | | | | | | | | | | |
| Net interest margin (GAAP) | | 3.40 | % | | | 3.36 | % | | | 3.32 | % | | | 3.40 | % | | | 3.45 | % | |
| Adjusted net interest margin (non-GAAP) (4) | | 3.33 | % | | | 3.27 | % | | | 3.22 | % | | | 3.28 | % | | | 3.31 | % | |
| _____ | | | | | | | | | | |
(2) Earnings available to common stockholders excluding amortization of intangibles divided by average tangible common equity.
| |
(3) Operating noninterest expense divided by operating revenue.
| |
(4) Adjusted net interest income divided by average interest-earning assets.
| |
| | |
| | |
| | As of | |
| | Mar. 31, | | Dec. 31, | | Sept. 30, | | June 30, | | Mar. 31, | |
| (dollars in thousands, except share data) | 2017
| | 2016
| | 2016
| | 2016
| | 2016
| |
| Capital Ratios and Book Value per Share | | | | | | | | | | |
| Common equity | $ | 540,277 | | | $ | 531,032 | | | $ | 499,588 | | | $ | 484,414 | | | $ | 474,727 | | |
| Less: intangible assets | | (148,804 | ) | | | (148,997 | ) | | | (149,190 | ) | | | (149,383 | ) | | | (149,600 | ) | |
| Tangible common equity | $ | 391,473 | | | $ | 382,035 | | | $ | 350,398 | | | $ | 335,031 | | | $ | 325,127 | | |
| | | | | | | | | | | |
| Total assets | $ | 4,460,816 | | | $ | 4,426,348 | | | $ | 4,327,804 | | | $ | 4,262,914 | | | $ | 4,091,000 | | |
| Less: intangible assets | | (148,804 | ) | | | (148,997 | ) | | | (149,190 | ) | | | (149,383 | ) | | | (149,600 | ) | |
| Tangible assets | $ | 4,312,012 | | | $ | 4,277,351 | | | $ | 4,178,614 | | | $ | 4,113,531 | | | $ | 3,941,400 | | |
| | | | | | | | | | | |
| Common shares outstanding | | 32,004,471 | | | | 31,944,403 | | | | 30,197,318 | | | | 30,197,318 | | | | 30,163,078 | | |
| | | | | | | | | | | |
| Common equity ratio (GAAP) | | 12.11 | % | | | 12.00 | % | | | 11.54 | % | | | 11.36 | % | | | 11.60 | % | |
| Tangible common equity ratio (non-GAAP) (5) | | 9.08 | % | | | 8.93 | % | | | 8.39 | % | | | 8.14 | % | | | 8.25 | % | |
| | | | | | | | | | | |
| Regulatory capital ratios (Bancorp): | | | | | | | | | | |
| Leverage ratio | | 9.44 | % | | | 9.29 | % | | | 8.49 | % | | | 8.52 | % | | | 8.66 | % | |
| Common equity Tier 1 risk-based ratio | | 9.79 | % | | | 9.74 | % | | | 9.25 | % | | | 9.10 | % | | | 9.06 | % | |
| Risk-based Tier 1 capital ratio | | 9.92 | % | | | 9.87 | % | | | 9.38 | % | | | 9.23 | % | | | 9.20 | % | |
| Risk-based total capital ratio | | 11.83 | % | | | 11.78 | % | | | 11.69 | % | | | 11.44 | % | | | 11.36 | % | |
| | | | | | | | | | | |
| Regulatory capital ratios (Bank): | | | | | | | | | | |
| Leverage ratio | | 10.50 | % | | | 10.34 | % | | | 9.57 | % | | | 9.62 | % | | | 9.83 | % | |
| Common equity Tier 1 risk-based ratio | | 11.03 | % | | | 10.98 | % | | | 10.58 | % | | | 10.43 | % | | | 10.45 | % | |
| Risk-based Tier 1 capital ratio | | 11.03 | % | | | 10.98 | % | | | 10.58 | % | | | 10.43 | % | | | 10.45 | % | |
| Risk-based total capital ratio | | 11.70 | % | | | 11.63 | % | | | 11.57 | % | | | 11.30 | % | | | 11.24 | % | |
| | | | | | | | | | | |
| Book value per share (GAAP) | $ | 16.88 | | | $ | 16.62 | | | $ | 16.54 | | | $ | 16.04 | | | $ | 15.74 | | |
| Tangible book value per share (non-GAAP) (6) | | 12.23 | | | | 11.96 | | | | 11.60 | | | | 11.09 | | | | 10.78 | | |
| | | | | | | | | | | |
| | | | | | | | | | | |
| | Three Months Ended | |
| | Mar. 31, | | Dec. 31, | | Sept. 30, | | June 30, | | Mar. 31, | |
| | 2017
| | 2016
| | 2016
| | 2016
| | 2016
| |
| Net Charge-Off Detail | | | | | | | | | | |
| Net loan charge-offs: | | | | | | | | | | |
| Charge-offs | $ | 71 | | | $ | 37,074 | | | $ | 1,910 | | | $ | 77 | | | $ | 512 | | |
| Recoveries | | (129 | ) | | | (2 | ) | | | (12 | ) | | | (16 | ) | | | (14 | ) | |
| Net loan charge-offs | $ | (58 | ) | | $ | 37,072 | | | $ | 1,898 | | | $ | 61 | | | $ | 498 | | |
| as a % of average total loans (annualized) | | -0.01 | % | | | 4.23 | % | | | 0.22 | % | | | 0.01 | % | | | 0.06 | % | |
| | | | | | | | | | | |
| Asset Quality | | | | | | | | | | |
| Nonaccrual taxi medallion loans | $ | 59,054 | | | $ | 63,044 | | | $ | 3,637 | | | $ | 3,882 | | | $ | 1,871 | | |
| Nonaccrual loans, excluding taxi medallion loans | | 12,790 | | | | 5,734 | | | | 7,856 | | | | 18,029 | | | | 19,579 | | |
| Other real estate owned | | 580 | | | | 626 | | | | 626 | | | | 2,029 | | | | 1,696 | | |
| Total nonperforming assets | $ | 72,424 | | | $ | 69,404 | | | $ | 12,119 | | | $ | 23,940 | | | $ | 23,146 | | |
| | | | | | | | | | | |
| Performing troubled debt restructurings | $ | 10,005 | | | $ | 13,338 | | | $ | 105,338 | | | $ | 97,831 | | | $ | 95,122 | | |
| | | | | | | | | | | |
| Allowance for loan and lease losses ("ALLL") | $ | 26,901 | | | $ | 25,744 | | | $ | 37,615 | | | $ | 32,763 | | | $ | 29,074 | | |
| ALLL, net of taxi specific reserves | | 26,901 | | | | 25,744 | | | | 25,081 | | | | 25,026 | | | | 23,087 | | |
| | | | | | | | | | | |
| Nonaccrual loans as a % of loans receivable, excluding taxi medallion loans | | 0.36 | % | | | 0.16 | % | | | 0.24 | % | | | 0.55 | % | | | 0.62 | % | |
| Nonperforming assets as a % of total assets | | 1.62 | % | | | 1.57 | % | | | 0.28 | % | | | 0.56 | % | | | 0.57 | % | |
| ALLL as a % of loans receivable | | 0.75 | % | | | 0.74 | % | | | 1.09 | % | | | 0.97 | % | | | 0.89 | % | |
| ALLL as a % of nonaccrual loans | | 37.4 | % | | | 37.4 | % | | | 327.3 | % | | | 149.5 | % | | | 135.5 | % | |
| ALLL (excluding taxi medallion specific reserves) as a % of nonaccrual loans (excluding taxi medallion loans) | | 210.3 | % | | | 449.0 | % | | | 319.3 | % | | | 138.8 | % | | | 117.9 | % | |
| ALLL (excluding taxi medallion specific reserves) as a % of loans receivable (excluding taxi medallion loans) | | 0.75 | % | | | 0.74 | % | | | 0.75 | % | | | 0.76 | % | | | 0.73 | % | |
| _____ | | | | | | | | | | |
| (5) Tangible common equity divided by tangible assets. | | | | | | | | | | |
| (6) Tangible common equity divided by common shares outstanding at period-end. | | | | | | | | | |
| | | | | | | | | | |
CONNECTONE BANCORP, INC.
| |
NET INTEREST MARGIN ANALYSIS
| |
(dollars in thousands)
| |
| | | | | For the Three Months Ended | | |
| | | | | March 31, 2017 | December 31, 2016 | March 31, 2016 | |
| | | | | Average | | | | | | Average | | | | | | Average | | | | | |
| Interest-earning assets: | | Balance | | Interest
| | Rate (8) | | | Balance | | Interest
| | Rate (8) | | | Balance | | Interest
| | Rate (8) | | |
| Investment securities (1) (2) | | $ | 366,473 | | | $ | 3,015 | | | 3.34 | % | | $ | 346,377 | | | $ | 2,864 | | | 3.29 | % | | $ | 415,481 | | | $ | 3,499 | | | 3.39 | % | |
| Loans receivable and loans held-for-sale (2) (3) (4) | | 3,549,031 | | | | 38,308 | | | 4.38 | | | | 3,488,473 | | | | 38,797 | | | 4.42 | | | | 3,189,572 | | | | 35,206 | | | 4.44 | | |
| Federal funds sold and interest- | | | | | | | | | | | | | | | | | | |
| bearing deposits with banks | | | 115,025 | | | | 246 | | | 0.87 | | | | 178,845 | | | | 215 | | | 0.48 | | | | 90,712 | | | | 134 | | | 0.59 | | |
| Restricted investment in bank stock | | 22,795 | | | | 330 | | | 5.87 | | | | 24,335 | | | | 336 | | | 5.49 | | | | 33,193 | | | | 352 | | | 4.26 | | |
| Total interest-earning assets | | 4,053,324 | | | | 41,899 | | | 4.19 | | | | 4,038,030 | | | | 42,212 | | | 4.16 | | | | 3,728,958 | | | | 39,191 | | | 4.23 | | |
| Allowance for loan losses | | | (26,215 | ) | | | | | | | (38,932 | ) | | | | | | | (27,221 | ) | | | | | |
| Noninterest-earning assets | | | 355,205 | | | | | | | | 350,863 | | | | | | | | 332,638 | | | | | | |
| Total assets | | | $ | 4,382,314 | | | | | | | $ | 4,349,961 | | | | | | | $ | 4,034,375 | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | |
| Interest-bearing liabilities: | | | | | | | | | | | | | | | | | | | |
| Money market deposits | | | 958,656 | | | | 1,515 | | | 0.64 | | | | 891,764 | | | | 1,346 | | | 0.60 | | | | 656,557 | | | | 812 | | | 0.50 | | |
| Savings deposits | | | | 199,000 | | | | 79 | | | 0.16 | | | | 205,477 | | | | 146 | | | 0.28 | | | | 215,491 | | | | 157 | | | 0.29 | | |
| Time deposits | | | | 963,976 | | | | 3,091 | | | 1.30 | | | | 985,944 | | | | 3,199 | | | 1.29 | | | | 807,801 | | | | 2,535 | | | 1.26 | | |
| Other interest-bearing deposits | | 549,335 | | | | 424 | | | 0.31 | | | | 534,127 | | | | 444 | | | 0.33 | | | | 503,896 | | | | 435 | | | 0.35 | | |
| Total interest-bearing deposits | | 2,670,967 | | | | 5,109 | | | 0.78 | | | | 2,617,312 | | | | 5,135 | | | 0.78 | | | | 2,183,745 | | | | 3,939 | | | 0.73 | | |
| | | | | | | | | | | | | | | | | | | | | | |
| Borrowings | | | | 442,595 | | | | 1,985 | | | 1.82 | | | | 476,925 | | | | 2,105 | | | 1.76 | | | | 684,469 | | | | 2,413 | | | 1.42 | | |
| Subordinated debentures (5) | | | 55,155 | | | | 808 | | | 5.94 | | | | 55,155 | | | | 810 | | | 5.84 | | | | 55,155 | | | | 811 | | | 5.91 | | |
| Capital lease obligation | | | 2,752 | | | | 41 | | | 6.04 | | | | 2,783 | | | | 42 | | | 6.00 | | | | 2,874 | | | | 43 | | | 6.02 | | |
| Total interest-bearing liabilities | | 3,171,469 | | | | 7,943 | | | 1.02 | | | | 3,152,175 | | | | 8,092 | | | 1.02 | | | | 2,926,243 | | | | 7,206 | | | 0.99 | | |
| | | | | | | | | | | | | | | | | | | | | | |
| Demand deposits | | | | 655,597 | | | | | | | | 666,913 | | | | | | | | 609,312 | | | | | | |
| Other liabilities | | | | 15,705 | | | | | | | | 19,210 | | | | | | | | 16,317 | | | | | | |
| Total noninterest-bearing liabilities | | 671,302 | | | | | | | | 686,123 | | | | | | | | 625,629 | | | | | | |
| Stockholders' equity | | | 539,543 | | | | | | | | 511,663 | | | | | | | | 482,503 | | | | | | |
| Total liabilities and stockholders' equity | $ | 4,382,314 | | | | | | | $ | 4,349,961 | | | | | | | $ | 4,034,375 | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | |
| Net interest income (tax equivalent basis) | | | | 33,956 | | | | | | | | | 34,120 | | | | | | | | | 31,985 | | | | | |
| Net interest spread (6) | | | | | 3.17 | % | | | | | 3.14 | % | | | | | 3.24 | % | |
| | | | | | | | | | | | | | | | | | | | | | |
| Net interest margin (7) | | | | | 3.40 | % | | | | | 3.36 | % | | | | | 3.45 | % | |
| | | | | | | | | | | | | | | | | | | | | | |
| Tax equivalent adjustment | | | | | (815 | ) | | | | | | | | (713 | ) | | | | | | | | (665 | ) | | | | |
| Net interest income | | | | | $ | 33,141 | | | | | | | | $ | 33,407 | | | | | | | | $ | 31,320 | | | | | |
| ______________________ | | | | | | | | | | | | | | | | | | | | | |
(1) Average balances are calculated on amortized cost.
| |
(2) Interest income is presented on a tax equivalent basis using 35% federal tax rate.
| |
(3) Includes loan fee income.
| |
(4) Loans include nonaccrual loans.
| |
(5) Does not reflect netting of debt issuance costs of $580, $621 and $763 for the three months ended March 31, 2017, December 31, 2016 and March 31, 2016, respectively.
| |
(6) 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.
| |
(7) Represents net interest income on a tax equivalent basis divided by average total interest-earning assets.
| |
(8) Rates are annualized.
| |
Investor Contact:
William S. Burns
Executive VP & CFO
201.816.4474; bburns@cnob.com
Media Contact:
Jake Ciorciari, MWW
646.376.7042; jciorciari@mww.com
