ENGLEWOOD CLIFFS, N.J., Oct. 27, 2022 (GLOBE NEWSWIRE) -- ConnectOne Bancorp, Inc. (Nasdaq: CNOB) (the “Company” or “ConnectOne”), parent company of ConnectOne Bank (the “Bank”), today reported net income available to common stockholders of $27.4 million for the third quarter of 2022 compared with $30.8 million for the second quarter of 2022 and $32.1 million for the third quarter of 2021. Diluted earnings per share were $0.70 for the third quarter of 2022 compared with $0.78 in the second quarter of 2022 and $0.80 in the third quarter of 2021. The decrease in net income available to common stockholders and diluted earnings per share from the second quarter of 2022 was primarily attributable to a $7.0 million increase in the provision for credit losses due to loan growth and changes in forecasted macroeconomic factors, and a $0.4 million increase in noninterest expenses, partially offset by increases in net interest income of $2.6 million and a $1.5 million decrease in income tax expense. The decrease in net income available to common stockholders and diluted earnings per share from the third quarter of 2021 was primarily due to an $8.9 million increase in the provision for credit losses, a $4.0 million increase in noninterest expenses, $1.5 million in preferred dividends, which were not paid in the 2021 period, and a $0.7 million decrease in noninterest income, partially offset by a $9.9 million increase in net interest income.
Frank Sorrentino, ConnectOne’s Chairman and Chief Executive Officer stated, “ConnectOne’s solid third quarter results reflect continued execution across the organization and dedication to relationship banking. We achieved record pre-tax, pre-provision earnings, which increased by more than 4% sequentially and by nearly 12% versus a year ago. This increase was driven by strong organic growth, a continued stable net interest margin, and further operating leverage. Credit quality remains sound, with no present signs of weakness, while we provided an additional $10 million in reserves during the third quarter primarily reflecting strong organic loan growth and changes in forecasted macroeconomic factors.”
“Return on assets was 1.27%, return on tangible common equity was 13.2% and our net interest margin remained robust at 3.68%. Firing on all cylinders, our efficiency ratio remained below 40%, average noninterest-bearing deposits grew sequentially by 4.6%, non-performing asset ratios improved for the fourth consecutive quarter, and tangible book value per share increased for the 10th consecutive quarter. Tangible book value per share has increased more than 30% since the first quarter of 2020 and by nearly 8% from a year ago.”
“During the quarter, total deposits grew by 10.5%, surpassing 8.6% in sequential loan growth and improving our loan to deposit ratio. And while loan rates increased, credit spreads tightened, as we delivered on our business model of serving existing clients, gaining new clients, and solidifying relationships that also bring in deposits. The end result was a healthy 3.4% sequential increase in net interest income as loan growth more than offset both GAAP and core margin compression.”
Mr. Sorrentino added, “Heading into the fourth quarter, loan yields are increasing, and spreads continue to widen, while the pipeline has moderated. Importantly, and demonstrating the effectiveness of our relationship banking business model, the vast majority of all loans originated this quarter included a deposit relationship. We also look forward to leveraging the investments we’ve made in technology that facilitate enhancements in our infrastructure and workflows, and simultaneously providing new deposit origination opportunities. Demand remains solid as we continue to gain traction across our markets. This reflects our differentiated origination franchise, strength of our operating markets, and recent investments in our people.”
“Year-to-date, ConnectOne’s results have been very strong, building on our track record of superior performance during turbulent times. We remain one of the most efficient banks in the industry while we continue to leverage our technological advantages and our culture to drive results. Looking ahead, I believe we remain well-positioned to capitalize on opportunities in any environment.”
Dividend Declarations
The Company announced that its Board of Directors declared a cash dividend on its common stock and a quarterly cash dividend on its preferred stock.
A cash dividend on common stock of $0.155 per share will be paid on December 1, 2022, to common stockholders of record on November 14, 2022. 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 December 1, 2022 to preferred stockholders of record on November 15, 2022.
Operating Results
Fully taxable equivalent net interest income for the third quarter of 2022 was $78.9 million, an increase of $2.7 million, or 3.6%, from the second quarter of 2022 resulting from an 8.9% increase in average interest-earning assets, primarily loans, and partially offset by a 23 basis-point contraction in the net interest margin to 3.68% from 3.91%. The decrease in the net interest margin primarily reflected two non-core items: a second quarter 2022 $1.5 million recovery on a purchased credit-deteriorated loan and a $2.0 million reduction in the accretion of Paycheck Protection Program (“PPP”) fee income. Excluding those two items, the net interest margin contracted by 5 basis points. The average cost of deposits, after factoring in the 4.6% increase in average noninterest-bearing demand balances, increased by 41 basis points to 0.77% from 0.36% in the second quarter of 2022.
Fully taxable equivalent net interest income for the third quarter of 2022 increased by $10.1 million, or 14.7%, from the third quarter of 2021. The increase from the third quarter of 2021 resulted primarily from a 16.1% increase in average interest earning assets, primarily loans, and was partially offset by a 5 basis-point contraction of the net interest margin to 3.68% from 3.73%. The contraction in the net interest margin resulted from a 56 basis-point increase in the cost of average interest-bearing liabilities, partially offset by a 36 basis-point increase in the yield on average interest-earning assets and a 12.5% increase in average noninterest-bearing demand deposits.
Noninterest income was $3.3 million in the third quarter of 2022, $3.4 million in the second quarter of 2022 and $4.0 million in the third quarter of 2021. Included in noninterest income were net losses on equity securities of $0.4 million, $0.4 million and $0.1 million for the third quarter 2022, second quarter 2022 and third quarter of 2021, respectively. Excluding equity securities losses, adjusted noninterest income was $3.8 million, $3.8 million and $4.1 million for the third quarter 2022, second quarter 2022 and third quarter 2021, respectively. Sequentially, income on bank owned life insurance (“BOLI”) increased by $0.2 million and deposit, loan and other income increased by $0.1 million. These increases to noninterest income during the third quarter of 2022 were offset by a decrease in net gains on sale of loans held-for-sale of $0.3 million. The $0.3 million decrease in adjusted noninterest income for the third quarter 2022 versus the third quarter 2021 was primarily due to a decrease in net gains on loans held-for-sale of $0.8 million, partially offset by increases in deposit, loan and other income of $0.3 million and BOLI income of $0.2 million.
Noninterest expenses totaled $32.1 million for the third quarter of 2022, $31.7 million for the second quarter of 2022 and $28.2 million for the third quarter of 2021. The increase in noninterest expenses of $0.4 million from the second quarter of 2022 was primarily attributable to increases in salaries and employee benefits of $1.4 million and other expenses of $0.2 million, partially offset by a decrease in BoeFly acquisition expense of $0.8 million. The increase in noninterest expenses of $4.0 million from the third quarter of 2021 was primarily attributable to increases in salaries and employee benefits of $4.1 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 $10.4 million for the third quarter of 2022, $11.9 million for the second quarter of 2022 and $10.9 million for the third quarter of 2021. The effective tax rates for the third quarter of 2022, second quarter of 2022 and third quarter of 2021 were 26.5%, 26.9% and 25.3%, respectively.
Asset Quality
The provision for credit losses was $10.0 million for the third quarter of 2022, $3.0 million for the second quarter of 2022 and $1.1 million for the third quarter of 2021. The increased provision for credit losses during the third quarter of 2022 reflected strong organic loan growth and changes in forecasted macroeconomic conditions.
Nonperforming assets, which includes nonaccrual loans and other real estate owned, were $57.7 million as of September 30, 2022, $61.7 million as of December 31, 2021 and $66.0 million as of September 30, 2021. Nonaccrual loans were $57.5 million as of September 30, 2022, $61.7 million as of December 31, 2021 and $66.0 million as of September 30, 2021. Nonperforming assets as a percentage of total assets were 0.61% as of September 30, 2022, 0.76% as of December 31, 2021 and 0.83% as of September 30, 2021. The ratio of nonaccrual loans to loans receivable was 0.73%, 0.90% and 1.00%, as of September 30, 2022, December 31, 2021 and September 30, 2021, respectively. The annualized net loan charge-offs ratio was 0.02% for the third quarter of 2022, 0.01% for the fourth quarter of 2021 and 0.10% for the third quarter of 2021. The allowance for credit losses represented 1.16%, 1.15%, and 1.19% of loans receivable as of September 30, 2022, December 31, 2021 and September 30, 2021, respectively. Excluding PPP loans, the allowance for credit losses represented 1.16%, 1.17%, and 1.22% of loans receivable as of September 30, 2022, December 31, 2021 and September 30, 2021, respectively. The allowance for credit losses as a percentage of nonaccrual loans was 159.7% as of September 30, 2022, 127.7% as of December 31, 2021 and 118.2% as of September 30, 2021.
Selected Balance Sheet Items
The Company’s total assets were $9.5 billion as of September 30, 2022, an increase of $1.3 billion from December 31, 2021. Loans receivable were $7.9 billion, an increase of $1.1 billion from December 31, 2021. The increase in loans receivable was attributable to organic loan originations.
The Company’s total stockholders’ equity was $1.1 billion as of September 30, 2022, an increase of $24.1 million from December 31, 2021. The increase in retained earnings of $70.8 million was the primary reason for the overall increase in stockholders’ equity, in addition to an increase in additional paid-in capital of $1.5 million, partially offset by a decrease in accumulated other comprehensive income of $35.1 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 September 30, 2022, the Company’s tangible common equity ratio and tangible book value per share were 8.87% and $20.93, 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 $216.1 million as of September 30, 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.
Third Quarter 2022 Results Conference Call
Management will also host a conference call and audio webcast at 10:00 a.m. ET on October 27, 2022 to review the Company's financial performance and operating results. The conference call dial-in number is 1-201-689-8471, access code 13733104. Please dial in at least five minutes before the start of the call to register. An audio webcast of the conference call will be available to the public, on a listen-only basis, via the "Investor Relations" link on the Company's website https://www.ConnectOneBank.com or at http://ir.connectonebank.com.
A replay of the conference call will be available beginning at approximately 1:00 p.m. ET on Thursday, October 27, 2022 and ending on Thursday, November 3, 2022 by dialing 1-412-317-6671, access code 13733104. 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: [email protected]
Media Contact:Shannan Weeks MWW 732.299.7890: [email protected]
| CONNECTONE BANCORP, INC. AND SUBSIDIARIES | |||||||||||
| CONSOLIDATED CONDENSED STATEMENTS OF FINANCIAL CONDITION | |||||||||||
| (in thousands) | |||||||||||
| September 30, | December 31, | September 30, | |||||||||
| 2022 | 2021 | 2021 | |||||||||
| (unaudited) | (unaudited) | ||||||||||
| ASSETS | |||||||||||
| Cash and due from banks | $ | 58,852 | $ | 54,352 | $ | 49,626 | |||||
| Interest-bearing deposits with banks | 274,992 | 211,184 | 363,569 | ||||||||
| Cash and cash equivalents | 333,844 | 265,536 | 413,195 | ||||||||
| Investment securities | 623,629 | 534,507 | 462,884 | ||||||||
| Equity securities | 15,563 | 13,794 | 13,700 | ||||||||
| Loans held-for-sale | 8,080 | 250 | 5,596 | ||||||||
| Loans receivable | 7,900,450 | 6,828,622 | 6,576,439 | ||||||||
| Less: Allowance for credit losses - loans | 91,717 | 78,773 | 77,986 | ||||||||
| Net loans receivable | 7,808,733 | 6,749,849 | 6,498,453 | ||||||||
| Investment in restricted stock, at cost | 45,324 | 27,826 | 18,106 | ||||||||
| Bank premises and equipment, net | 28,519 | 29,032 | 29,635 | ||||||||
| Accrued interest receivable | 38,940 | 34,152 | 33,610 | ||||||||
| Bank owned life insurance | 229,800 | 195,731 | 194,487 | ||||||||
| Right of use operating lease assets | 10,196 | 11,017 | 11,002 | ||||||||
| Other real estate owned | 264 | - | - | ||||||||
| Goodwill | 208,372 | 208,372 | 208,372 | ||||||||
| Core deposit intangibles | 7,721 | 8,997 | 9,480 | ||||||||
| Other assets | 119,267 | 50,417 | 50,994 | ||||||||
| Total assets | $ | 9,478,252 | $ | 8,129,480 | $ | 7,949,514 | |||||
| LIABILITIES | |||||||||||
| Deposits: | |||||||||||
| Noninterest-bearing | $ | 1,665,658 | $ | 1,617,049 | $ | 1,500,754 | |||||
| Interest-bearing | 5,644,852 | 4,715,904 | 4,897,584 | ||||||||
| Total deposits | 7,310,510 | 6,332,953 | 6,398,338 | ||||||||
| Borrowings | 829,953 | 468,193 | 253,225 | ||||||||
| Subordinated debentures, net | 153,179 | 152,951 | 152,875 | ||||||||
| Operating lease liabilities | 11,454 | 12,417 | 12,437 | ||||||||
| Other liabilities | 24,861 | 38,754 | 34,206 | ||||||||
| Total liabilities | 8,329,957 | 7,005,268 | 6,851,081 | ||||||||
| COMMITMENTS AND CONTINGENCIES | |||||||||||
| STOCKHOLDERS' EQUITY | |||||||||||
| Preferred stock | 110,927 | 110,927 | 110,927 | ||||||||
| Common stock | 586,946 | 586,946 | 586,946 | ||||||||
| Additional paid-in capital | 28,756 | 27,246 | 25,851 | ||||||||
| Retained earnings | 510,957 | 440,169 | 413,996 | ||||||||
| Treasury stock | (52,799 | ) | (39,672 | ) | (38,314 | ) | |||||
| Accumulated other comprehensive loss | (36,492 | ) | (1,404 | ) | (973 | ) | |||||
| Total stockholders' equity | 1,148,295 | 1,124,212 | 1,098,433 | ||||||||
| Total liabilities and stockholders' equity | $ | 9,478,252 | $ | 8,129,480 | $ | 7,949,514 | |||||
| CONNECTONE BANCORP, INC. AND SUBSIDIARIES | |||||||||||||||
| CONSOLIDATED STATEMENTS OF INCOME | |||||||||||||||
| (dollars in thousands, except for per share data) | |||||||||||||||
| Three Months Ended | Nine Months Ended | ||||||||||||||
| 09/30/22 | 09/30/21 | 09/30/22 | 09/30/21 | ||||||||||||
| Interest income | |||||||||||||||
| Interest and fees on loans | $ | 90,731 | $ | 75,092 | $ | 248,041 | $ | 216,655 | |||||||
| Interest and dividends on investment securities: | |||||||||||||||
| Taxable | 4,063 | 1,065 | 8,487 | 3,148 | |||||||||||
| Tax-exempt | 1,083 | 511 | 2,708 | 1,885 | |||||||||||
| Dividends | 438 | 245 | 943 | 764 | |||||||||||
| Interest on federal funds sold and other short-term investments | 665 | 113 | 1,098 | 246 | |||||||||||
| Total interest income | 96,980 | 77,026 | 261,277 | 222,698 | |||||||||||
| Interest expense | |||||||||||||||
| Deposits | 13,299 | 5,478 | 24,018 | 19,487 | |||||||||||
| Borrowings | 5,520 | 3,303 | 13,149 | 10,794 | |||||||||||
| Total interest expense | 18,819 | 8,781 | 37,167 | 30,281 | |||||||||||
| Net interest income | 78,161 | 68,245 | 224,110 | 192,417 | |||||||||||
| Provision for (reversal of) credit losses | 10,000 | 1,100 | 14,450 | (6,315 | ) | ||||||||||
| Net interest income after provision for credit losses | 68,161 | 67,145 | 209,660 | 198,732 | |||||||||||
| Noninterest income | |||||||||||||||
| Deposit, loan and other income | 1,969 | 1,702 | 5,578 | 5,092 | |||||||||||
| Income on bank owned life insurance | 1,521 | 1,278 | 4,069 | 3,527 | |||||||||||
| Net gains on sale of loans held-for-sale | 262 | 1,114 | 1,519 | 2,668 | |||||||||||
| Gain on sale of branches | - | - | - | 674 | |||||||||||
| Net losses on equity securities | (430 | ) | (78 | ) | (1,431 | ) | (242 | ) | |||||||
| Net gains on sale/redemption of investment securities | - | - | - | 195 | |||||||||||
| Total noninterest income | 3,322 | 4,016 | 9,735 | 11,914 | |||||||||||
| Noninterest expenses | |||||||||||||||
| Salaries and employee benefits | 20,882 | 16,740 | 59,041 | 47,589 | |||||||||||
| Occupancy and equipment | 2,600 | 2,656 | 7,262 | 8,876 | |||||||||||
| FDIC insurance | 720 | 525 | 2,051 | 2,040 | |||||||||||
| Professional and consulting | 1,980 | 2,217 | 5,896 | 6,290 | |||||||||||
| Marketing and advertising | 461 | 345 | 1,238 | 864 | |||||||||||
| Information technology and communications | 2,747 | 3,048 | 8,414 | 8,209 | |||||||||||
| Amortization of core deposit intangible | 409 | 483 | 1,276 | 1,498 | |||||||||||
| Increase in value of acquisition price | - | - | 1,516 | - | |||||||||||
| Other expenses | 2,344 | 2,169 | 6,382 | 5,561 | |||||||||||
| Total noninterest expenses | 32,143 | 28,183 | 93,076 | 80,927 | |||||||||||
| Income before income tax expense | 39,340 | 42,978 | 126,319 | 129,719 | |||||||||||
| Income tax expense | 10,425 | 10,881 | 33,665 | 32,404 | |||||||||||
| Net income | 28,915 | 32,097 | 92,654 | 97,315 | |||||||||||
| Preferred dividends | 1,509 | - | 4,527 | - | |||||||||||
| Net income available to common stockholders | $ | 27,406 | $ | 32,097 | $ | 88,127 | $ | 97,315 | |||||||
| Earnings per common share: | |||||||||||||||
| Basic | $ | 0.70 | $ | 0.81 | $ | 2.24 | $ | 2.45 | |||||||
| Diluted | 0.70 | 0.80 | 2.23 | 2.43 | |||||||||||
| 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 | |||||||||||||||||||||
| Sep. 30, | Jun. 30, | Mar. 31, | Dec. 30, | Sep. 30, | |||||||||||||||||
| 2022 | 2022 | 2022 | 2021 | 2021 | |||||||||||||||||
| Selected Financial Data | (dollars in thousands) | ||||||||||||||||||||
| Total assets | $ | 9,478,252 | $ | 8,841,506 | $ | 8,334,301 | $ | 8,129,480 | $ | 7,949,514 | |||||||||||
| Loans receivable: | |||||||||||||||||||||
| Commercial | $ | 1,392,037 | $ | 1,274,280 | $ | 1,161,867 | $ | 1,163,442 | $ | 1,116,535 | |||||||||||
| Paycheck Protection Program ("PPP") loans | 11,458 | 18,004 | 54,301 | 93,057 | 177,829 | ||||||||||||||||
| Commercial real estate | 3,087,354 | 2,727,120 | 2,516,065 | 2,446,807 | 2,354,209 | ||||||||||||||||
| Multifamily | 2,624,726 | 2,442,603 | 2,465,337 | 2,337,712 | 2,113,541 | ||||||||||||||||
| Commercial construction | 537,323 | 569,789 | 539,058 | 540,178 | 552,896 | ||||||||||||||||
| Residential | 256,085 | 249,379 | 250,205 | 255,269 | 270,793 | ||||||||||||||||
| Consumer | 1,030 | 1,248 | 1,140 | 1,886 | 2,093 | ||||||||||||||||
| Gross loans | 7,910,013 | 7,282,423 | 6,987,973 | 6,838,351 | 6,587,896 | ||||||||||||||||
| Unearned net origination fees | (9,563 | ) | (7,850 | ) | (8,378 | ) | (9,729 | ) | (11,457 | ) | |||||||||||
| Loans receivable | 7,900,450 | 7,274,573 | 6,979,595 | 6,828,622 | 6,576,439 | ||||||||||||||||
| Loans held-for-sale | 8,080 | 3,182 | 2,742 | 250 | 5,596 | ||||||||||||||||
| Total loans | $ | 7,908,530 | $ | 7,277,755 | $ | 6,982,337 | $ | 6,828,872 | $ | 6,582,035 | |||||||||||
| Investment and equity securities | $ | 639,192 | $ | 691,934 | $ | 525,228 | $ | 548,301 | $ | 476,584 | |||||||||||
| Goodwill and other intangible assets | 216,093 | 216,502 | 216,936 | 217,369 | 217,852 | ||||||||||||||||
| Deposits: | |||||||||||||||||||||
| Noninterest-bearing demand | $ | 1,665,658 | $ | 1,712,875 | $ | 1,631,292 | $ | 1,617,049 | $ | 1,500,754 | |||||||||||
| Time deposits | 1,921,235 | 1,285,409 | 1,065,814 | 1,150,109 | 0 | 1,221,911 | |||||||||||||||
| Other interest-bearing deposits | 3,723,617 | 3,619,315 | 3,863,299 | 3,565,795 | 3,675,673 | ||||||||||||||||
| Total deposits | $ | 7,310,510 | $ | 6,617,599 | $ | 6,560,405 | $ | 6,332,953 | $ | 6,398,338 | |||||||||||
| Borrowings | $ | 829,953 | $ | 874,964 | $ | 412,170 | $ | 468,193 | $ | 253,225 | |||||||||||
| Subordinated debentures (net of debt issuance costs) | 153,179 | 153,103 | 153,027 | 152,951 | 152,875 | ||||||||||||||||
| Total stockholders' equity | 1,148,295 | 1,143,147 | 1,138,519 | 1,124,212 | 1,098,433 | ||||||||||||||||
| Quarterly Average Balances | |||||||||||||||||||||
| Total assets | $ | 9,030,589 | $ | 8,322,823 | $ | 8,263,382 | $ | 8,027,169 | $ | 7,837,997 | |||||||||||
| Loans receivable: | |||||||||||||||||||||
| Commercial (including PPP loans) | $ | 1,342,868 | $ | 1,245,812 | $ | 1,231,703 | $ | 1,278,048 | $ | 1,296,066 | |||||||||||
| Commercial real estate (including multifamily) | 5,455,714 | 4,974,297 | 4,850,349 | 4,625,371 | 4,312,092 | ||||||||||||||||
| Commercial construction | 537,073 | 544,084 | 541,642 | 547,038 | 572,920 | ||||||||||||||||
| Residential | 251,338 | 247,208 | 253,589 | 268,112 | 279,063 | ||||||||||||||||
| Consumer | 2,361 | 5,029 | 3,682 | 4,938 | 2,649 | ||||||||||||||||
| Gross loans | 7,589,354 | 7,016,430 | 6,880,965 | 6,723,507 | 6,462,790 | ||||||||||||||||
| Unearned net origination fees | (9,178 | ) | (9,222 | ) | (9,870 | ) | (10,873 | ) | (13,064 | ) | |||||||||||
| Loans receivable | 7,580,176 | 7,007,208 | 6,871,095 | 6,712,634 | 6,449,726 | ||||||||||||||||
| Loans held-for-sale | 2,195 | 966 | 382 | 5,051 | 6,226 | ||||||||||||||||
| Total loans | $ | 7,582,371 | $ | 7,008,174 | $ | 6,871,477 | $ | 6,717,685 | $ | 6,455,952 | |||||||||||
| Investment and equity securities | $ | 687,291 | $ | 567,140 | $ | 536,090 | $ | 481,276 | $ | 465,103 | |||||||||||
| Goodwill and other intangible assets | 216,360 | 216,786 | 217,219 | 217,685 | 218,170 | ||||||||||||||||
| Deposits: | |||||||||||||||||||||
| Noninterest-bearing demand | $ | 1,682,135 | $ | 1,607,465 | $ | 1,547,055 | $ | 1,537,316 | $ | 1,495,456 | |||||||||||
| Time deposits | 1,525,076 | 1,103,418 | 1,124,614 | 1,204,374 | 1,252,818 | ||||||||||||||||
| Other interest-bearing deposits | 3,686,520 | 3,717,531 | 3,851,558 | 3,672,311 | 3,582,261 | ||||||||||||||||
| Total deposits | $ | 6,893,731 | $ | 6,428,414 | $ | 6,523,227 | $ | 6,414,001 | $ | 6,330,535 | |||||||||||
| Borrowings | $ | 772,561 | $ | 548,675 | $ | 404,907 | $ | 292,847 | $ | 276,183 | |||||||||||
| Subordinated debentures (net of debt issuance costs) | 153,129 | 153,053 | 152,977 | 152,902 | 152,825 | ||||||||||||||||
| Total stockholders' equity | 1,160,448 | 1,143,092 | 1,131,968 | 1,113,524 | 1,032,191 | ||||||||||||||||
| Three Months Ended | |||||||||||||||||||||
| Sep. 30, | Jun. 30, | Mar. 31, | Dec. 30, | Sep. 30, | |||||||||||||||||
| 2022 | 2022 | 2022 | 2021 | 2021 | |||||||||||||||||
| (dollars in thousands, except for per share data) | |||||||||||||||||||||
| Net interest income | $ | 78,161 | $ | 75,591 | $ | 70,358 | $ | 70,461 | $ | 68,245 | |||||||||||
| Provision for (reversal of) credit losses | 10,000 | 3,000 | 1,450 | 815 | 1,100 | ||||||||||||||||
| Net interest income after provision for credit losses | 68,161 | 72,591 | 68,908 | 69,646 | 67,145 | ||||||||||||||||
| Noninterest income | |||||||||||||||||||||
| Deposit, loan and other income | 1,969 | 1,866 | 1,743 | 1,525 | 1,702 | ||||||||||||||||
| Income on bank owned life insurance | 1,521 | 1,342 | 1,206 | 1,244 | 1,278 | ||||||||||||||||
| Net gains on sale of loans held-for-sale | 262 | 556 | 701 | 1,139 | 1,114 | ||||||||||||||||
| Net losses gains on equity securities | (430 | ) | (405 | ) | (596 | ) | (131 | ) | (78 | ) | |||||||||||
| Total noninterest income | 3,322 | 3,359 | 3,054 | 3,777 | 4,016 | ||||||||||||||||
| Noninterest expenses | |||||||||||||||||||||
| Salaries and employee benefits | 20,882 | 19,519 | 18,640 | 16,483 | 16,740 | ||||||||||||||||
| Occupancy and equipment | 2,600 | 2,733 | 1,929 | 2,762 | 2,656 | ||||||||||||||||
| FDIC insurance | 720 | 725 | 606 | 625 | 525 | ||||||||||||||||
| Professional and consulting | 1,980 | 2,124 | 1,792 | 1,996 | 2,217 | ||||||||||||||||
| Marketing and advertising | 461 | 426 | 351 | 454 | 345 | ||||||||||||||||
| Information technology and communications | 2,747 | 2,801 | 2,866 | 3,058 | 3,048 | ||||||||||||||||
| Amortization of core deposit intangible | 409 | 434 | 433 | 483 | 483 | ||||||||||||||||
| Increase in value of acquisition price | - | 833 | 683 | - | - | ||||||||||||||||
| Other expenses | 2,344 | 2,108 | 1,930 | 2,223 | 2,169 | ||||||||||||||||
| Total noninterest expenses | 32,143 | 31,703 | 29,230 | 28,084 | 28,183 | ||||||||||||||||
| Income before income tax expense | 39,340 | 44,247 | 42,732 | 45,339 | 42,978 | ||||||||||||||||
| Income tax expense | 10,425 | 11,889 | 11,351 | 12,301 | 10,881 | ||||||||||||||||
| Net income | $ | 28,915 | $ | 32,358 | $ | 31,381 | $ | 33,038 | $ | 32,097 | |||||||||||
| Preferred dividends | 1,509 | 1,509 | 1,509 | 1,717 | - | ||||||||||||||||
| Net income available to common stockholders | $ | 27,406 | $ | 30,849 | $ | 29,872 | $ | 31,321 | $ | 32,097 | |||||||||||
| Weighted average diluted common shares outstanding | 39,320,674 | 39,481,689 | 39,727,606 | 39,792,937 | 39,869,468 | ||||||||||||||||
| Diluted EPS | $ | 0.70 | $ | 0.78 | $ | 0.75 | $ | 0.79 | $ | 0.80 | |||||||||||
| Reconciliation of GAAP Earnings to Pre-tax and Pre-provision Net Revenue | |||||||||||||||||||||
| Net income | $ | 28,915 | $ | 32,358 | $ | 31,381 | $ | 33,038 | $ | 32,097 | |||||||||||
| Income tax expense | 10,425 | 11,889 | 11,351 | 12,301 | 10,881 | ||||||||||||||||
| Provision for (reversal of) credit losses | 10,000 | 3,000 | 1,450 | 815 | 1,100 | ||||||||||||||||
| Pre-tax and pre-provision net revenue | $ | 49,340 | $ | 47,247 | $ | 44,182 | $ | 46,154 | $ | 44,078 | |||||||||||
| Return on Assets Measures | |||||||||||||||||||||
| Average assets | $ | 9,030,589 | $ | 8,322,823 | $ | 8,263,382 | $ | 8,027,169 | $ | 7,837,997 | |||||||||||
| Return on avg. assets | 1.27 | % | 1.56 | % | 1.54 | % | 1.63 | % | 1.62 | % | |||||||||||
| Return on avg. assets (pre-tax and pre-provision) | 2.17 | 2.28 | 2.17 | 2.28 | 2.23 | ||||||||||||||||
| Three Months Ended | |||||||||||||||||||||
| Sep. 30, | Jun. 30, | Mar. 31, | Dec. 30, | Sep. 30, | |||||||||||||||||
| 2022 | 2022 | 2022 | 2021 | 2021 | |||||||||||||||||
| Return on Equity Measures | (dollars in thousands) | ||||||||||||||||||||
| Average stockholders' equity | $ | 1,160,448 | $ | 1,143,097 | $ | 1,131,968 | $ | 1,113,524 | $ | 1,032,195 | |||||||||||
| Less: average preferred stock | (110,927 | ) | (110,927 | ) | (110,927 | ) | (110,927 | ) | (51,847 | ) | |||||||||||
| Average common equity | $ | 1,049,521 | $ | 1,032,170 | $ | 1,021,041 | $ | 1,002,597 | $ | 980,348 | |||||||||||
| Less: average intangible assets | (216,360 | ) | (216,786 | ) | (217,219 | ) | (217,685 | ) | (218,170 | ) | |||||||||||
| Average tangible common equity | $ | 833,161 | $ | 815,384 | $ | 803,822 | $ | 784,912 | $ | 762,178 | |||||||||||
| Return on avg. common equity (GAAP) | 10.36 | % | 11.99 | % | 11.87 | % | 12.39 | % | 12.99 | % | |||||||||||
| Return on avg. tangible common equity ("TCE") (non-GAAP) (1) | 13.19 | 15.32 | 15.22 | 16.00 | 16.88 | ||||||||||||||||
| Return on avg. tangible common equity (pre-tax, pre-provision, pre-merger charges) | 23.63 | 23.39 | 22.44 | 23.50 | 23.12 | ||||||||||||||||
| Efficiency Measures | |||||||||||||||||||||
| Total noninterest expenses | $ | 32,143 | $ | 31,703 | $ | 29,230 | $ | 28,084 | $ | 28,183 | |||||||||||
| Amortization of core deposit intangibles | (409 | ) | (434 | ) | (433 | ) | (483 | ) | (483 | ) | |||||||||||
| Operating noninterest expense | $ | 31,734 | $ | 31,269 | $ | 28,797 | $ | 27,601 | $ | 27,700 | |||||||||||
| Net interest income (tax equivalent basis) | $ | 78,850 | $ | 76,146 | $ | 70,842 | $ | 70,890 | $ | 68,761 | |||||||||||
| Noninterest income | 3,322 | 3,359 | 3,054 | 3,777 | 4,016 | ||||||||||||||||
| Net losses (gains) on equity securities | 430 | 405 | 596 | 131 | 78 | ||||||||||||||||
| Operating revenue | $ | 82,602 | $ | 79,910 | $ | 74,492 | $ | 74,798 | $ | 72,855 | |||||||||||
| Operating efficiency ratio (non-GAAP) (2) | 38.4 | % | 39.1 | % | 38.7 | % | 36.9 | % | 38.0 | % | |||||||||||
| Net Interest Margin | |||||||||||||||||||||
| Average interest-earning assets | $ | 8,500,316 | $ | 7,807,445 | $ | 7,753,881 | $ | 7,508,973 | $ | 7,321,771 | |||||||||||
| Net interest income (tax equivalent basis) | $ | 78,850 | $ | 76,146 | $ | 70,842 | $ | 70,890 | $ | 68,761 | |||||||||||
| Impact of purchase accounting fair value marks | (885 | ) | (1,014 | ) | (1,179 | ) | (1,674 | ) | (1,849 | ) | |||||||||||
| Adjusted net interest income (tax equivalent basis) | $ | 77,965 | $ | 75,132 | $ | 69,663 | $ | 69,216 | $ | 66,912 | |||||||||||
| Net interest margin (GAAP) | 3.68 | % | 3.91 | % | 3.71 | % | 3.75 | % | 3.73 | % | |||||||||||
| Adjusted net interest margin (non-GAAP) (3) | 3.64 | 3.86 | 3.64 | 3.66 | 3.63 | ||||||||||||||||
| (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 | |||||||||||||||||||||
| Sep. 30, | Jun. 30, | Mar. 31, | Dec. 30, | Sep. 30, | |||||||||||||||||
| 2022 | 2022 | 2022 | 2021 | 2021 | |||||||||||||||||
| Capital Ratios and Book Value per Share | (dollars in thousands, except for per share data) | ||||||||||||||||||||
| Stockholders equity | $ | 1,148,295 | $ | 1,143,147 | $ | 1,138,519 | $ | 1,124,212 | $ | 1,098,433 | |||||||||||
| Less: preferred stock | (110,927 | ) | (110,927 | ) | (110,927 | ) | (110,927 | ) | (110,927 | ) | |||||||||||
| Common equity | $ | 1,037,368 | $ | 1,032,220 | $ | 1,027,592 | $ | 1,013,285 | $ | 987,506 | |||||||||||
| Less: intangible assets | (216,093 | ) | (216,502 | ) | (216,936 | ) | (217,369 | ) | (217,852 | ) | |||||||||||
| Tangible common equity | $ | 821,275 | $ | 815,718 | $ | 810,656 | $ | 795,916 | $ | 769,654 | |||||||||||
| Total assets | $ | 9,478,252 | $ | 8,841,506 | $ | 8,334,301 | $ | 8,129,480 | $ | 7,949,514 | |||||||||||
| Less: intangible assets | (216,093 | ) | (216,502 | ) | (216,936 | ) | (217,369 | ) | (217,852 | ) | |||||||||||
| Tangible assets | $ | 9,262,159 | $ | 8,625,004 | $ | 8,117,365 | $ | 7,912,111 | $ | 7,731,662 | |||||||||||
| Common shares outstanding | 39,243,123 | 39,243,123 | 39,518,411 | 39,568,090 | 39,602,199 | ||||||||||||||||
| Common equity ratio (GAAP) | 10.94 | % | 11.67 | % | 12.33 | % | 12.46 | % | 12.42 | % | |||||||||||
| Tangible common equity ratio (non-GAAP) (4) | 8.87 | 9.46 | 9.99 | 10.06 | 9.95 | ||||||||||||||||
| Regulatory capital ratios (Bancorp): | |||||||||||||||||||||
| Leverage ratio | 10.95 | % | 11.63 | % | 11.57 | % | 11.65 | % | 11.60 | % | |||||||||||
| Common equity Tier 1 risk-based ratio | 10.20 | 10.63 | 10.69 | 10.64 | 10.73 | ||||||||||||||||
| Risk-based Tier 1 capital ratio | 11.58 | 12.11 | 12.21 | 12.19 | 12.35 | ||||||||||||||||
| Risk-based total capital ratio | 14.45 | 15.09 | 15.25 | 15.26 | 15.54 | ||||||||||||||||
| Regulatory capital ratios (Bank): | |||||||||||||||||||||
| Leverage ratio | 10.91 | % | 11.61 | % | 11.41 | % | 11.43 | % | 11.33 | % | |||||||||||
| Common equity Tier 1 risk-based ratio | 11.53 | 12.08 | 12.04 | 11.96 | 12.06 | ||||||||||||||||
| Risk-based Tier 1 capital ratio | 11.53 | 12.08 | 12.04 | 11.96 | 12.06 | ||||||||||||||||
| Risk-based total capital ratio | 13.00 | 13.55 | 13.55 | 13.44 | 13.61 | ||||||||||||||||
| Book value per share (GAAP) | $ | 26.43 | $ | 26.30 | $ | 26.00 | $ | 25.61 | $ | 24.94 | |||||||||||
| Tangible book value per share (non-GAAP) (5) | 20.93 | 20.79 | 20.51 | 20.12 | 19.43 | ||||||||||||||||
| Net Loan (Recoveries) Charge-Off Detail | |||||||||||||||||||||
| Net loan charge-offs (recoveries): | |||||||||||||||||||||
| Charge-offs | $ | 413 | $ | 302 | $ | 274 | $ | 458 | $ | 1,727 | |||||||||||
| Recoveries | (53 | ) | (32 | ) | (32 | ) | (217 | ) | (113 | ) | |||||||||||
| Net loan charge-offs (recoveries) | $ | 360 | $ | 270 | $ | 242 | $ | 241 | $ | 1,614 | |||||||||||
| Net loan charge-offs (recoveries) as a % of average loans receivable (annualized) | 0.02 | % | 0.02 | % | 0.01 | % | 0.01 | % | 0.10 | % | |||||||||||
| Asset Quality | |||||||||||||||||||||
| Nonaccrual loans | $ | 57,447 | $ | 60,756 | $ | 59,403 | $ | 61,700 | $ | 65,959 | |||||||||||
| OREO | 264 | 316 | 316 | - | - | ||||||||||||||||
| Nonperforming assets | $ | 57,711 | $ | 61,072 | $ | 59,719 | $ | 61,700 | $ | 65,959 | |||||||||||
| Allowance for credit losses - loans ("ACL") | 91,717 | 82,739 | 80,070 | 78,773 | 77,986 | ||||||||||||||||
| Loans receivable | $ | 7,900,450 | $ | 7,274,573 | $ | 6,979,595 | $ | 6,828,622 | $ | 6,576,439 | |||||||||||
| Less: PPP loans | 11,458 | 18,004 | 54,301 | 93,057 | 177,829 | ||||||||||||||||
| Loans receivable (excluding PPP loans) | $ | 7,888,992 | $ | 7,256,569 | $ | 6,925,294 | $ | 6,735,565 | $ | 6,398,610 | |||||||||||
| Nonaccrual loans as a % of loans receivable | 0.73 | % | 0.84 | % | 0.85 | % | 0.90 | % | 1.00 | ||||||||||||
| Nonperforming assets as a % of total assets | 0.61 | 0.69 | 0.72 | 0.76 | 0.83 | ||||||||||||||||
| ACL as a % of loans receivable | 1.16 | 1.14 | 1.15 | 1.15 | 1.19 | ||||||||||||||||
| ACL as a % of loans receivable (excluding PPP loans) | 1.16 | 1.14 | 1.16 | 1.17 | 1.22 | ||||||||||||||||
| ACL as a % of nonaccrual loans | 159.7 | 136.2 | 134.8 | 127.7 | 118.2 | ||||||||||||||||
| (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 | |||||||||||||||||||||||||||||||||
| September 30, 2022 | June 30, 2022 | September 30, 2021 | |||||||||||||||||||||||||||||||
| Average | Average | Average | |||||||||||||||||||||||||||||||
| Interest-earning assets: | Balance | Interest | Rate (7) | Balance | Interest | Rate (7) | Balance | Interest | Rate (7) | ||||||||||||||||||||||||
| Investment securities (1) (2) | $ | 740,394 | $ | 5,434 | 2.91 | % | $ | 610,465 | $ | 3,710 | 2.44 | % | $ | 459,559 | $ | 1,712 | 1.48 | % | |||||||||||||||
| Loans receivable and loans held-for-sale (2) (3) (4) | 7,582,371 | 91,132 | 4.77 | 7,008,174 | 81,597 | 4.67 | 6,455,952 | 75,434 | 4.64 | ||||||||||||||||||||||||
| Federal funds sold and interest- | |||||||||||||||||||||||||||||||||
| bearing deposits with banks | 135,331 | 665 | 1.95 | 157,201 | 312 | 0.80 | 387,155 | 151 | 0.15 | ||||||||||||||||||||||||
| Restricted investment in bank stock | 42,220 | 438 | 4.12 | 31,605 | 291 | 3.69 | 19,105 | 245 | 5.09 | ||||||||||||||||||||||||
| Total interest-earning assets | 8,500,316 | 97,669 | 4.56 | 7,807,445 | 85,910 | 4.41 | 7,321,771 | 77,542 | 4.20 | ||||||||||||||||||||||||
| Allowance for loan losses | (84,307 | ) | (81,012 | ) | (78,327 | ) | |||||||||||||||||||||||||||
| Noninterest-earning assets | 614,580 | 596,390 | 594,553 | ||||||||||||||||||||||||||||||
| Total assets | $ | 9,030,589 | $ | 8,322,823 | $ | 7,837,997 | |||||||||||||||||||||||||||
| Interest-bearing liabilities: | |||||||||||||||||||||||||||||||||
| Time deposits | $ | 1,525,076 | 5,396 | 1.40 | $ | 1,103,418 | $ | 2,179 | 0.79 | 1,252,818 | 2,983 | 0.94 | |||||||||||||||||||||
| Other interest-bearing deposits | 3,686,520 | 7,903 | 0.85 | 3,717,531 | 3,530 | 0.38 | 3,582,261 | 2,495 | 0.28 | ||||||||||||||||||||||||
| Total interest-bearing deposits | 5,211,596 | 13,299 | 1.01 | 4,820,949 | 5,709 | 0.47 | 4,835,079 | 5,478 | 0.45 | ||||||||||||||||||||||||
| Borrowings | 772,561 | 3,297 | 1.69 | 548,675 | 1,849 | 1.35 | 276,183 | 1,105 | 1.59 | ||||||||||||||||||||||||
| Subordinated debentures | 153,129 | 2,196 | 5.69 | 153,053 | 2,178 | 5.71 | 152,825 | 2,168 | 5.63 | ||||||||||||||||||||||||
| Finance lease | 1,813 | 27 | 5.91 | 1,865 | 28 | 6.02 | 2,018 | 30 | 5.90 | ||||||||||||||||||||||||
| Total interest-bearing liabilities | 6,139,099 | 18,819 | 1.22 | 5,524,542 | 9,764 | 0.71 | 5,266,105 | 8,781 | 0.66 | ||||||||||||||||||||||||
| Noninterest-bearing demand deposits | 1,682,135 | 1,607,465 | 1,495,456 | ||||||||||||||||||||||||||||||
| Other liabilities | 48,907 | 47,719 | 44,245 | ||||||||||||||||||||||||||||||
| Total noninterest-bearing liabilities | 1,731,042 | 1,655,184 | 1,539,701 | ||||||||||||||||||||||||||||||
| Stockholders' equity | 1,160,448 | 1,143,097 | 1,032,191 | ||||||||||||||||||||||||||||||
| Total liabilities and stockholders' equity | $ | 9,030,589 | $ | 8,322,823 | $ | 7,837,997 | |||||||||||||||||||||||||||
| Net interest income (tax equivalent basis) | 78,850 | 76,146 | 68,761 | ||||||||||||||||||||||||||||||
| Net interest spread (5) | 3.34 | % | 3.70 | % | 3.54 | % | |||||||||||||||||||||||||||
| Net interest margin (6) | 3.68 | % | 3.91 | % | 3.73 | % | |||||||||||||||||||||||||||
| Tax equivalent adjustment | (689 | ) | (555 | ) | (516 | ) | |||||||||||||||||||||||||||
| Net interest income | $ | 78,161 | $ | 75,591 | $ | 68,245 | |||||||||||||||||||||||||||
| (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. | |||||||||||||||||||||||||||||||||
