ConnectOne Bancorp, Inc. (CNOB) SEC Filing 10-Q Quarterly report for the period ending Wednesday, September 30, 2015

View amendments to this 10-Q report filed on 11/9/2015
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EXHIBIT 99.1

ConnectOne Bancorp, Inc. Reports Second Quarter 2015 Results; Earnings Per Diluted Share Increases 34.6% From Prior Year; Solid Organic Growth Continues

ENGLEWOOD CLIFFS, N.J., July 24, 2015 (GLOBE NEWSWIRE) -- ConnectOne Bancorp, Inc. (Nasdaq:CNOB) (the "Company" or "ConnectOne"), parent company of ConnectOne Bank (the "Bank"), today announced results for the second quarter ended June 30, 2015, the fourth full quarter following the Merger between the Company and legacy ConnectOne completed on July 1, 2014 (the "Merger"). Financial information prior to July 1, 2014 includes only the operations of the Company, the legal and accounting acquirer in the transaction. Concurrent with the Merger, the combined company changed its name to ConnectOne.

For the second quarter of 2015, the Company reported net income available to common stockholders of $10.5 million, or $0.35 per diluted share, compared with net income available to common stockholders of $10.4 million, or $0.34 per diluted share, for the first quarter of 2015 and $4.4 million, or $0.26 per diluted share, for the second quarter of 2014.

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 net income available to common stockholders excluding non-core items. 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 measure are provided in the accompanying tables.

Second quarter 2015 results reflect the following non-core items (on an after-tax basis): a $1.3 million insurance recovery; a $1.4 million loss on debt extinguishment; $0.8 million of income resulting from accretion of purchase accounting fair value marks; $0.3 million in additional loan loss provision related to the maturity and extension of acquired portfolio loans; $0.1 million of net securities gains; $0.1 million of pension settlement expenses, which had no impact on total stockholders' equity or book value per share, and $0.1 million in amortization of intangible assets. Excluding non-core items, net income available to common stockholders was $10.2 million, or $0.34 per diluted share, for the second quarter of 2015, $9.9 million, or $0.33 per diluted share, for the first quarter of 2015, and $4.5 million, or $0.27 per diluted share, for the second quarter of 2014. 

Frank Sorrentino, ConnectOne's Chairman and CEO, stated, "Earnings momentum continued during the second quarter of 2015 and our strong operating performance was highlighted by second quarter loan growth of $124.5 million, representing an 18.9% annualized sequential growth rate, while deposits grew at an 11.7% annualized sequential rate. On the deposit side, our continued success in building commercial relationships resulted in a 24.0% annualized sequential growth rate in average noninterest-bearing demand deposit balances. As of June 30, 2015, noninterest-bearing demand deposits represented 24.0% of total deposits, up from approximately 19% when the Merger was consummated one year ago. Our performance metrics remain in the upper tier of banking institutions. Core return on average tangible assets and equity was 1.20% and 13.47%, respectively, our operating efficiency ratio for the second quarter of 2015 was 42.0%, while nonperforming assets as a percent of total assets improved to 0.37%. During the second quarter, we successfully completed the private placement of $50 million in holding company subordinated debt thereby improving our total risk-based capital ratio to 12.3%. In addition, during the second quarter of 2015, we recorded a previously announced insurance recovery and prepaid $16.0 million in principal amount of high cost puttable borrowings. The debt extinguishment reflects our continued restructuring of the borrowings portfolio established by the former Center Bancorp management during a higher rate operating environment. The transaction lowers our interest expense in future periods, partially offsetting the increased interest expense associated with the subordinated debt issuance and immediately improves our interest rate risk profile. Looking ahead, we expect our positive operating momentum to contribute to continued loan portfolio growth and a solid second half of the year for ConnectOne."

Operating Results

Fully taxable equivalent ("FTE") net interest income for the second quarter of 2015 was $29.3 million, an increase of $17.1 million, or 139.3%, from the same quarter of 2014. This was a result of a 119.0% increase in average interest-earning assets and a 31 basis-point widening of the net interest rate margin, both due to the Merger. Included in net interest income during the second quarter of 2015 was $1.5 million of accretion and amortization of purchase accounting adjustments. Excluding these purchase accounting adjustments, the adjusted net interest margin was 3.42% in the second quarter of 2015, 13 basis points higher than the 2014 second quarter adjusted net interest margin of 3.29%. The improvement in the adjusted net interest margin in the second quarter of 2015 versus the same 2014 period was primarily attributable to an improved mix of interest earning assets arising from a greater proportion of average loans in second quarter of 2015 along with a reduction in the average rate paid on borrowings, which resulted from a $70 million debt extinguishment and subsequent refinancing accomplished at the end of the third quarter of 2014. The adjusted net interest margin for the second quarter of 2015 narrowed by four basis points from the sequential first quarter of 2015, due to moderate margin compression resulting from the continued low interest rate environment and a reduction in loan prepayment penalties.

Noninterest income, excluding an insurance recovery of $2.2 million in 2015 and excluding net securities gains of $0.2 million in 2015 and $0.6 million in 2014, totaled $1.0 million in the second quarter of 2015 and $1.2 million for the second quarter of 2014. Noninterest income includes bank-owned life insurance income, deposit and loan fees, annuities and life insurance commissions, and gains on sales of residential mortgages in the secondary market and represents a relatively small portion of the Bank's total revenue. Although management intends to continue its strategy of de-emphasizing service charges in order to attract new and retain existing clients, it expects fee income to increase modestly in future periods.

Noninterest expenses totaled $12.6 million, excluding debt extinguishment charges of $2.4 million, for the second quarter of 2015 compared with $6.0 million, excluding $0.7 million of Merger-related charges, for the same quarter of 2014. The increase in the second quarter of 2015 was primarily attributable to the Merger as well as an increased level of business and staff resulting from organic growth. The Company's operating efficiency ratio was 42.0% in both the 2015 second and first quarters, and 44.8% in the 2014 second quarter. The decrease from the year-ago quarter reflects realization of Merger cost savings.

Income tax expense was $5.1 million and $2.0 million for the second quarter of 2015 and 2014, respectively, resulting in effective tax rates of 32.5% and 31.2% for the second quarter of 2015 and 2014, respectively. The increase in the effective tax rate for 2015 reflects a decline in the percentage of tax-exempt income to total pretax income. The effective tax rate for the remainder of 2015 is expected to remain fairly constant.  

Asset Quality

The provision for loan losses increased to $1.6 million in the second quarter of 2015, compared with $0.3 million in the second quarter of 2014. The increase primarily resulted from higher loan growth and the maturity and extension of acquired portfolio loans.  

Nonperforming assets, which includes nonaccrual loans and other real estate owned, were $13.7 million at June 30, 2015, $12.7 million at December 31, 2014, and $4.3 million at June 30, 2014. Nonperforming assets as a percent of total assets was 0.37% at June 30, 2015 and at December 31, 2014, and 0.26% at June 30, 2014. Annualized net charge-offs were zero for the second quarter 2015 and 0.04% in the second quarter of 2014. The allowance for loan losses was $17.5 million, representing 0.63% of loans receivable and 143.9% of nonaccrual loans at June 30, 2015. At December 31, 2014, the allowance was $14.2 million representing 0.56% of loans receivable and 122.0% of nonaccrual loans, and, at June 30, 2014, the allowance was $10.8 million representing 1.08% of loans receivable and 268.5% of nonaccrual loans. In purchase accounting, any allowance for loan losses on an acquired loan portfolio is reversed and a credit risk discount is applied directly to the acquired loan balances. In Management's opinion, a useful non-GAAP metric is the ratio of allowance for loan losses plus the credit risk discount to total loans receivable. This non-GAAP ratio was 1.15% at June 30, 2015, 1.23% at December 31, 2014, and 1.11% at June 30, 2014. The reduction in this ratio from year-end reflects amortization and payoff of acquired loans, a favorable change in loan mix and improving credit trends.

Selected Balance Sheet Items

At June 30, 2015, the Company's total assets were $3.7 billion, an increase of $211 million from December 31, 2014. Loans receivable were $2.8 billion, reflecting net loan growth (loan originations less pay-downs and pay-offs) of $227 million from December 31, 2014, primarily attributable to originated multi-family ($93 million), commercial and industrial ("C&I") ($76 million) and construction ($42 million). Management's current intent is to maintain a multi-family portfolio concentration in the 25-30% range, while growing the C&I and construction segments. The growth in loans was funded with increases in deposits, borrowings and subordinated debt.

The Company's stockholders' equity was $464 million at June 30, 2015, an increase of $18 million from December 31, 2014. The increase in stockholders' equity was due to an $16 million increase in retained earnings and approximately $2 million of equity issuance related to stock-based compensation, including the exercise of options, and was partially offset by an approximately $1 million decrease in unrealized gains on available for sale securities.

As of June 30, 2015, the Company's tangible common equity ratio and tangible book value per share were 8.62% and $10.02, respectively. As of December 31, 2014, the tangible common equity ratio and tangible book value per share were 8.62% and $9.57, respectively. Total goodwill and other intangible assets were $150 million as of June 30, 2015, a decrease of $1.0 million from December 31, 2014.

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 23 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 STATEMENTS OF CONDITION
(in thousands, except for share data) June 30, December 31,
  2015 2014
  (unaudited) (audited)
ASSETS    
Cash and due from banks  $ 41,454  $ 31,813
Interest-bearing deposits with banks  84,029  95,034
Cash and cash equivalents  125,483  126,847
     
Investment securities:    
Available-for-sale  264,098  289,532
Held-to-maturity (fair value of $237,208 and $231,445)  232,557  224,682
     
Loans held for sale  124  --
     
Loans receivable  2,765,288  2,538,641
Less: Allowance for loan and lease losses  17,480  14,160
Net loans receivable  2,747,808  2,524,481
     
Investment in restricted stock, at cost  27,078  23,535
Bank premises and equipment, net  21,252  20,653
Accrued interest receivable  12,055  11,700
Bank-owned life insurance  53,293  52,518
Other real estate owned  1,564  1,108
Goodwill  145,909  145,909
Core deposit intangibles  4,343  4,825
Other assets  24,493  22,782
Total assets  $ 3,660,057  $ 3,448,572
     
LIABILITIES    
Deposits:    
Noninterest-bearing  $ 553,008  $ 492,515
Interest-bearing  2,016,223  1,983,092
Total deposits  2,569,231  2,475,607
Borrowings  548,758  495,553
Subordinated debentures  55,155  5,155
Other liabilities  22,931  26,038
Total liabilities  3,196,075  3,002,353
     
COMMITMENTS AND CONTINGENCIES    
     
STOCKHOLDERS' EQUITY    
Preferred stock, $1,000 liquidation value per share, authorized 5,000,000 shares; 
issued and outstanding 11,250 shares of Series B preferred stock at June 30, 2015 and
December 31, 2014; total liquidation value of $11,250 at June 30, 2015 and December 31, 2014
 11,250  11,250
Common stock, no par value, authorized 50,000,000 shares; issued 32,260,653
shares at June 30, 2015 and 31,758,828 at December 31, 2014; outstanding 30,196,731
shares at June 30, 2015 and 29,694,906 at December 31, 2014
 374,287  374,287
Additional paid-in capital  8,120  6,015
Retained earnings  88,772  72,398
Treasury stock, at cost (2,063,922 common shares at June 30, 2015 and December 31, 2014)  (16,717)  (16,717)
Accumulated other comprehensive loss  (1,730)  (1,014)
Total stockholders' equity  463,982  446,219
Total liabilities and stockholders' equity  $ 3,660,057  $ 3,448,572
 
CONNECTONE BANCORP, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF INCOME (unaudited)
(dollars in thousands, except for per share data)
         
   Three Months Ended June 30,   Six Months Ended June 30, 
  2015 2014 2015 2014
Interest income        
Interest and fees on loans  $ 30,217  $ 10,461  $ 59,531  $ 20,572
Interest and dividends on investment securities:        
Taxable  2,760  2,909  5,671  5,925
Tax-exempt  883  895  1,765  1,951
Dividends  280  136  500  290
Interest on federal funds sold and other short-term investments  41  --  84  --
Total interest income  34,181  14,401  67,551  28,738
Interest expense        
Deposits  3,301  1,301  6,325  2,617
Borrowings  2,202  1,432  4,256  2,843
Total interest expense  5,503  2,733  10,581  5,460
         
Net interest income  28,678  11,668  56,970  23,278
Provision for loan and lease losses  1,550  284  3,375  909
Net interest income after provision for loan and lease losses  27,128  11,384  53,595  22,369
         
Noninterest income        
Annuities and insurance commissions  46  105  133  205
Bank-owned life insurance  388  256  774  511
Net gains on sale of loans held for sale  99  43  213  79
Deposit, loan and other income  458  746  921  1,461
Insurance recovery  2,224  --  2,224  --
Net gains on sale of investment securities  221  574  726  1,989
Total noninterest income  3,436  1,724  4,991  4,245
         
Noninterest expenses        
Salaries and employee benefits  6,948  3,184  13,575  6,516
Occupancy and equipment  1,788  816  3,869  1,896
FDIC insurance  440  288  1,000  588
Professional and consulting  715  306  1,209  561
Marketing and advertising  193  27  387  67
Data processing  829  373  1,729  718
Merger expenses  --  729  --  1,789
Loss on extinguishment of debt  2,397  --  2,397  --
Amortization of core deposit intangible  241  --  483  --
Other expenses  1,423  1,021  2,955  2,105
Total noninterest expenses  14,974  6,744  27,604  14,240
         
Income before income tax expense  15,590  6,364  30,982  12,374
Income tax expense  5,069  1,986  10,081  3,598
Net income  10,521  4,378  20,901  8,776
Less: Preferred stock dividends  28  28  56  56
Net income available to common stockholders  $ 10,493  $ 4,350  $ 20,845  $ 8,720
         
Earnings per common share:        
Basic  $ 0.35  $ 0.27  $ 0.70  $ 0.53
Diluted  0.35  0.26  0.69  0.53
Weighted average common shares outstanding:        
Basic  29,868,247  16,372,885  29,812,521  16,361,596
Diluted  30,231,480  16,430,376  30,203,682  16,422,339
Dividend per common share  $ 0.075  $ 0.075  $ 0.150  $ 0.150
 
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          
(dollars in thousands, except share data)          
  Three Months Ended
  June 30, March 31, Dec. 31, Sept. 30, June 30,
  2015 2015 2014 2014 2014
Earnings, EPS and Operating Data          
Net income (GAAP)  $ 10,521  $ 10,379  $ 8,023  $ 1,766  $ 4,378
Less: preferred dividends  28  28  28  28  28
Net income available to common stockholders (GAAP)  10,493  10,351  7,995  1,738  4,350
Net gains on sales of securities  (221)  (506)  (718)  (111)  (574)
Partial settlements of pension obligation  243  559  --  --  --
Insurance recovery  (2,223)  --  --  --  --
Merger-related expenses  --  --  1,816  8,784  729
Loss on debt extinguishment  2,397  --  --   4,550  --
Amortization of intangible assets  241  241  245  248  6
Provision related to maturity and extension of acquired portfolio loans  502  757  787  336  --
Charge due to wire fraud  --  --  2,374  --  --
Accretion of purchase accounting fair value marks  (1,513)  (1,802)  (2,491)  (2,892)  7
Non-core items  (574)  (751)  2,013  10,915  168
Income tax (expense) benefit  (234)  (307)  294  4,044  59
Non-core items, after taxes  (340)  (444)  1,719  6,871  109
Core earnings available to common stockholders (non-GAAP)  $ 10,153  $ 9,907  $ 9,714  $ 8,609  $ 4,459
           
Weighted average diluted shares outstanding  30,231,480  30,149,469  30,149,244  30,115,520  16,430,376
Diluted EPS (GAAP)  $ 0.35  $ 0.34  $ 0.27  $ 0.06  $ 0.26
Core Diluted EPS (Non-GAAP) (1)  $ 0.34  $ 0.33  $ 0.32  $ 0.29  $ 0.27
           
Return on Assets Measures          
Core earnings available to common stockholders (non-GAAP)  $ 10,153  $ 9,907  $ 9,714  $ 8,609  $ 4,459
Add: preferred dividends  28  28  28  28  28
Core net income (non-GAAP)  $ 10,181  $ 9,935  $ 9,742  $ 8,637  $ 4,487
           
Average assets  $ 3,551,597  $ 3,466,820  $ 3,369,402  $ 3,350,599  $ 1,657,440
Less: average intangible assets  (150,407)  (150,650)  (150,934)  (151,142)  (16,819)
Average tangible assets  $ 3,401,190  $ 3,316,170  $ 3,218,468  $ 3,199,457  $ 1,640,621
           
Return on avg. assets (GAAP) 1.19% 1.21% 0.94% 0.21% 1.06%
Core return on avg. assets (Non-GAAP) (2) 1.15% 1.16% 1.15% 1.02% 1.09%
Return on avg. tangible assets (Non-GAAP) (3) 1.26% 1.29% 1.01% 0.24% 1.06%
Core return on avg. tangible assets (Non-GAAP) (4) 1.20% 1.22% 1.20% 1.07% 1.10%
           
(1) Represents core earnings available to common stockholders divided by weighted average diluted shares outstanding.
(2) Core net income divided by average assets.
(3) Net income excluding amortization of intangible assets divided by average tangible assets.
(4) Core net income divided by average tangible assets.
  Three Months Ended
(dollars in thousands, except share data) June 30, March 31, Dec. 31, Sept. 30, June 30,
  2015 2015 2014 2014 2014
Return on Equity Measures          
Core earnings available to common stockholders  $ 10,153  $ 9,907  $ 9,714  $ 8,609  $ 4,459
           
Average common equity  $ 452,754  $ 442,970  $ 437,136  $ 432,331  $ 165,301
Less: average intangible assets  (150,407)  (150,650)  (150,934)  (151,142)  (16,819)
Average tangible common equity  $ 302,347  $ 292,320  $ 286,202  $ 281,189  $ 148,482
           
Return on avg. common equity (GAAP) 9.30% 9.48% 7.26% 1.59% 10.56%
Core return on avg. common equity (non-GAAP) (5) 9.00% 9.07% 8.82% 7.90% 10.82%
Return on avg. tangible common equity (non-GAAP) (6) 14.11% 14.56% 11.28% 2.66% 11.76%
Core return on avg. tangible common equity (non-GAAP) (7) 13.47% 13.75% 13.47% 12.15% 12.04%
           
Efficiency Measures          
Total noninterest expenses  $ 14,974  $ 12,631  $ 15,164  $ 25,400  $ 6,744
Partial settlements of pension obligation  (243)  (559)  --  --  --
Merger-related expenses  --  --  (1,816)  (8,784)  (729)
Loss on debt extinguishment  (2,397)  --  --  (4,550)  --
Charge due to wire fraud  --  --  (2,374)  --  --
Amortization of intangible assets and fair value marks  (241)  (241)  (218)  (224)  (6)
Operating non-interest expense   $ 12,093  $ 11,831  $ 10,756  $ 11,842  $ 6,009
           
Net interest income (FTE)  29,316  28,906  29,135  28,146  12,252
Impact of purchase accounting fair value marks  (1,487)  (1,776)  (2,464)  (2,868)  7
Noninterest income  3,436  1,555  2,076  1,173  1,724
Less: insurance recovery  (2,224)  --  --  --  --
Less: net gains on sales of securities  (221)  (506)  (718)  (111)  (574)
Operating revenue   $ 28,820  $ 28,179  $ 28,029  $ 26,340  $ 13,409
           
Operating Efficiency Ratio (non-GAAP) (8) 42.0% 42.0% 38.4% 45.0% 44.8%
           
Net Interest Margin          
Average interest earning assets  $ 3,266,382  $ 3,182,894  $ 3,082,934  $ 3,050,564  $ 1,491,297
           
Net interest income (FTE)  $ 29,316  $ 28,906  $ 29,135  $ 28,146  $ 12,252
Impact of purchase accounting fair value marks  (1,487)  (1,776)  (2,464)  (2,868)  7
Adjusted net interest income  $ 27,829  $ 27,130  $ 26,671  $ 25,278  $ 12,259
           
Net interest margin (GAAP) 3.60% 3.68% 3.75% 3.66% 3.29%
Adjusted net interest margin (non-GAAP) (9) 3.42% 3.46% 3.43% 3.29% 3.29%
           
(5) Core earnings available to common stockholders divided by average common equity.
(6) Earnings available to common stockholders excluding amortization of intangibles divided by average tangible common equity.
(7) Core earnings available to common stockholders divided by average tangible common equity.
(8) Operating noninterest expense divided by operating revenue.
(9) Adjusted net interest income divided by average interest earning assets.
  As of
(dollars in thousands, except share data) June 30, March 31, Dec. 31, Sept. 30, June 30,
  2015 2015 2014 2014 2014
Capital Ratios and Book Value per Share          
Common equity  $ 452,732  $ 444,944  $ 434,969  $ 429,650  $ 167,028
Less: intangible assets  (150,252)  (150,493)  (150,734)  (150,979)  (16,815)
Tangible common equity  $ 302,480  $ 294,451  $ 284,235  $ 278,671  $ 150,213
           
Total assets  $ 3,660,057  $ 3,505,891  $ 3,448,572  $ 3,356,257  $ 1,665,809
Less: intangible assets  (150,252)  (150,493)  (150,734)  (150,979)  (16,815)
Tangible assets  $ 3,509,805  $ 3,355,398  $ 3,297,838  $ 3,205,278  $ 1,648,994
           
Common shares outstanding  30,196,731  29,864,602  29,694,906  29,644,037  16,413,490
           
Common equity ratio (GAAP) 12.37% 12.69% 12.61% 12.80% 10.03%
Tangible common equity ratio (non-GAAP) (10) 8.62% 8.78% 8.62% 8.69% 9.11%
           
Regulatory capital ratios (Bancorp):          
Leverage ratio 9.49% 9.45% 9.37% 9.23% 10.08%
Common equity Tier 1 risk-based ratio 9.63% 9.75% n/a n/a n/a
Risk-based Tier 1 capital ratio 10.14% 10.29% 10.44% 10.63% 12.59%
Risk-based total capital ratio 12.26% 10.82% 10.94% 11.07% 13.43%
           
Regulatory capital ratios (Bank):          
Leverage ratio 10.48% 9.41% 9.33% 9.16% 9.99%
Common equity Tier 1 risk-based ratio 11.19% 10.24% n/a n/a n/a
Risk-based Tier 1 capital ratio 11.19% 10.24% 10.40% 10.59% 12.48%
Risk-based total capital ratio 11.74% 10.77% 10.90% 11.04% 13.32%
           
Book value per share (GAAP)  $ 14.99  $ 14.90  $ 14.65  $ 14.49  $ 10.18
Tangible book value per share (non-GAAP) (11)  10.02  9.86  9.57  9.40  9.15
           
Asset Quality          
Nonaccrual loans  $ 12,145  $ 14,585  $ 11,610  $ 6,083  $ 4,032
Other real estate owned  1,564  870  1,108  1,442  220
Total nonperforming assets  $ 13,709  $ 15,455  $ 12,718  $ 7,525  $ 4,252
           
Performing troubled debt restructurings  $ 1,697  $ 1,731  $ 1,763  $ 1,876  $ 1,586
Loans past due 90 days and still accruing  --  638  1,211  --  144
           
Nonaccrual loans as a % of loans receivable 0.44% 0.55% 0.46% 0.25% 0.40%
Nonperforming assets as a % of total assets 0.37% 0.44% 0.37% 0.22% 0.26%
Allowance for loan losses as a % of nonaccrual loans 143.9% 109.2% 122.0% 199.2% 268.5%
Annualized net charge-offs as a % of average loans  -- % 0.01% 0.07% 0.03% 0.04%
           
Total loans receivable  $ 2,765,288  $ 2,640,739  $ 2,538,641  $ 2,426,765  $ 1,006,256
Less: acquired loans  (1,060,632)  (1,110,859)  (1,190,085)  (1,286,482)  (29,821)
Loans receivable, excluding acquired loans  $ 1,704,656  $ 1,529,880  $ 1,348,556  $ 1,140,283  $ 976,435
           
Allowance for loan losses  $ 17,480  $ 15,933  $ 14,160  $ 12,118  $ 10,825
Accretable credit risk discount on acquired loans  14,331  15,800  17,017  18,835  371
Total allowance for loan losses and accretable credit risk discount on acquired loans  $ 31,811  $ 31,733  $ 31,177  $ 30,953  $ 11,196
           
Allowance for loan losses as a % of loans receivable 0.63% 0.60% 0.56% 0.50% 1.08%
Allowance for loan losses as a % of loans receivable, excluding acquired loans 1.03% 1.04% 1.05% 1.06% 1.11%
Allowance for loan losses and accretable credit risk discount on loans as a % of loans receivable 1.15% 1.20% 1.23% 1.28% 1.11%
           
(10) Tangible common equity divided by tangible assets.
(11) 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
  June 30, 2015 June 30, 2014
  Average    Average Average    Average
Interest-earning assets: Balance Interest Rate (7) Balance Interest Rate (7)
Investment securities (1) (2)  $ 495,805  $ 4,118  3.33%  $ 492,633  $ 4,325  3.51%
Loans receivable (2) (3) (4)  2,689,525  30,380  4.53%  989,454  10,563  4.27%
Federal funds sold and interest-bearing deposits with banks  54,087  41  0.30%  --  --  -- %
Restricted investment in bank stock  26,965  280  4.16%  9,210  97  4.22%
Total interest-earning assets  3,266,382  34,819  4.28%  1,491,297  14,985  4.02%
Allowance for loan losses  (16,463)      (10,756)    
Non-interest earning assets  301,677      176,899    
Total assets  $ 3,551,597      $ 1,657,440    
             
Interest-bearing liabilities:            
Money market deposits  $ 660,481  689  0.42%  $ 395,912  491  0.50%
Savings deposits  218,845  157  0.29%  161,522  124  0.31%
Time deposits  748,780  2,131  1.14%  173,544  383  0.88%
Other interest-bearing deposits  347,068  324  0.37%  350,761  303  0.35%
Total interest-bearing deposits  1,975,173  3,301  0.67%  1,081,739  1,301  0.48%
             
Borrowings  565,094  2,110  1.50%  150,934  1,393  3.69%
Capital lease obligation  2,961  44  5.96%  --  --  -- %
Subordinated debentures  5,704  48  3.38%  5,155  39  3.02%
Total interest-bearing liabilities  2,548,932  5,503  0.87%  1,237,828  2,733  0.88%
             
Demand deposits  510,369      228,873    
Other liabilities  28,292      14,188    
Total noninterest-bearing liabilities  538,661      243,061    
Stockholders' equity  464,004      176,551    
             
Total liabilities and stockholders' equity  $ 3,551,597      $ 1,657,440    
             
Net interest income (tax equivalent basis)    29,316      12,252  
Net interest spread (5)      3.41%      3.14%
             
Net interest margin (6)      3.60%      3.29%
             
Tax equivalent adjustment    (638)      (584)  
Net interest income    $ 28,678      $ 11,668  
             
(1) Average balances are calculated on amortized cost.
(2) Interest income is presented on a tax equivalent basis using 35 percent federal tax rate.
(3) Includes loan fee income.
(4) Loans include non-accrual 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.
CONTACT: Investor Contact:
         William S. Burns
         Executive VP & CFO
         201.816.4474; bburns@cnob.com

         Media Contact:
         Dawn Lauer, MWW
         212.827.3744; dlauer@mww.com

The following information was filed by ConnectOne Bancorp, Inc. on Friday, July 24, 2015 as an 8K 2.02 statement, which is a press release pertaining to results of operations and financial condition. It may be helpful to assess the quality of management by comparing the information in the press release to the information in the accompanying 10-Q Quarterly Report statement of earnings and operation as management may choose to highlight particular information in the press release.

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https://www.last10k.com/sec-filings/cnob/0000930413-15-004241.htm
  • Form Type: Quarterly
  • Number of times amended: 1
  • Accession Number: 0000930413-15-004241
  • Submitted to the SEC: Monday, November 9, 2015
  • Accepted by the SEC: Monday, November 9, 2015
  • Period Ending: September 2015
Companies
 

CNOB Morningstar

ConnectOne Bancorp, Inc.

$25.25 +0 (+0%)

Day's Range:
N/A

52-Week Range:
$14.86 to $26.65

Volume:
N/A

Volume (Avg):
111,377

Earnings per Share:
$1.41

PEG / Short / PE Ratios:
2.30 / 5.38 / 17.91

Market Cap:
$764.19M

Book Value:
16.54

EBITDA:
$0.00