ENGLEWOOD CLIFFS, N.J., Oct. 26, 2023 (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 $19.9 million for the third quarter of 2023, compared to $19.9 million for the second quarter of 2023 and $27.4 million for the third quarter of 2022. Diluted earnings per share were $0.51 for the third quarter of 2023, $0.51 for the second quarter of 2023 and $0.70 for the third quarter of 2022. The decreases in net income available to common stockholders and diluted earnings per share from the third quarter of 2022 were primarily due to a $15.8 million decrease in net interest income and a $3.6 million increase in noninterest expenses, partially offset by an $8.5 million decrease in the provision for credit losses, a $0.2 million increase in noninterest income and a $3.2 million decrease in income tax expense.
Pre-tax, pre-provision net revenue (“PPNR”) as a percentage of average assets was 1.24%, 1.31% and 2.17% for the quarters ending September 30, 2023, June 30, 2023 and September 30, 2022, respectively.
“ConnectOne’s operating performance during the 2023 third quarter reflected a commitment to our deep client relationships resulting in a solid balance sheet with the flexibility to support both new and existing clients,” commented Frank Sorrentino, ConnectOne’s Chairman and Chief Executive Officer. “Despite challenging market conditions, ConnectOne is poised to withstand the current interest rate cycle and we’re well positioned to opportunistically capitalize on new growth opportunities we see today, as well as those expected upon a return to normalcy. Our robust, readily available liquidity position remains nearly 2.5 times our uninsured deposits, net of collateralized and intercompany subsidiary deposits. Further, our tangible common equity ratio, which continues to be a notable challenge for much of the industry due to rising long-term rates, remains above 9%. This key capital ratio is well above peer averages, demonstrating continued effective management of ConnectOne’s capital and AOCI. Additionally, our credit quality metrics remain sound, reflective of prudent underwriting, strong portfolio oversight and a resilient economy.”
“For the quarter, client deposits (which exclude non-reciprocal brokered deposits) increased modestly while the loan portfolio remained relatively flat sequentially.” Mr. Sorrentino added, “As expected, our net interest margin contracted just slightly, as funding costs are showing signs of leveling out. Nevertheless, fierce deposit competition and the continued migration out of non-interest-bearing deposit demand balances suggest we may experience additional, albeit modest, contraction in our net interest margin near-term.”
“Operationally, we continue to leverage our technological advantages and our culture to drive performance. Further, we’re seizing opportunities to strengthen ConnectOne’s team by adding high-performing talent across the board, including revenue-producing areas, while also optimizing operations, staff count and branch footprint.”
Mr. Sorrentino concluded, “As we approach the fourth quarter and focus on navigating the challenges that lie ahead, I believe ConnectOne is well-positioned to capitalize on opportunities in any environment. We remain one of the industry’s most efficient banks nationwide and, by maintaining our long-standing financial discipline, leveraging our results-oriented client-centric culture and continuing to invest in our valuable franchise, ConnectOne is poised for continued success.”
Dividend Declarations
The Company announced that its Board of Directors declared a quarterly cash dividend on its common stock and declared a cash dividend on its outstanding preferred stock.
A cash dividend on common stock of $0.17 will be paid on December 1, 2023, to common stockholders of record on November 15, 2023. A dividend of $0.328125 per depositary share, representing a 1/40th interest in the Company’s 5.25% Fixed Rate Reset Non-Cumulative Perpetual Preferred Stock, Series A, will also be paid on December 1, 2023 to preferred stockholders of record on November 15, 2023.
Operating Results
Fully taxable equivalent net interest income for the third quarter of 2023 was $63.2 million, a decrease of $1.4 million, or 2.2%, from the second quarter of 2023 due to a 5 basis-point contraction in the net interest margin to 2.76% from 2.81% and a $138.6 million, or 1.5%, decrease in interest-earning assets. The decrease in average interest-earning assets from the second quarter of 2023 was primarily attributable to a decrease in average cash and cash equivalents of $151.3 million, partially offset by an increase in average loans of $19.9 million. Average brokered deposits (excluding reciprocal client balances) declined by $50.9 million, or 5.3%, from the sequential quarter. While the net interest margin benefitted from a 14 basis-point increase in the loan portfolio yield to 5.63%, the average cost of deposits, including noninterest-bearing demand, increased by 26 basis-points to 2.92% from 2.66% in the second quarter of 2023. Contributing to the increased cost of deposits was a $71.9 million, or 5.3%, decline in average noninterest-bearing deposits.
Fully taxable equivalent net interest income for the third quarter of 2023 decreased by $15.6 million, or 19.8%, from the third quarter of 2022. The decrease from the third quarter of 2022 resulted primarily from a 92 basis-point decrease in the net interest margin from 3.68% to 2.76%, partially offset by an increase in interest-earning assets of $0.6 billion. The contraction of the net interest margin for the third quarter of 2023 when compared to the third quarter of 2022 was primarily attributable to a 215 basis-point increase in the average costs of deposits, including noninterest-bearing deposits, partially offset by an 86 basis-point increase in the loan portfolio yield.
Noninterest income was $3.6 million in the third quarter of 2023, $3.4 million in the second quarter of 2023 and $3.3 million in the third quarter of 2022. Included in noninterest income were net losses on equity securities of $0.3 million, $0.2 million, and $0.4 million for the third quarter of 2023, second quarter of 2023 and third quarter of 2022, respectively. Excluding the equity securities losses, adjusted noninterest income was $3.8 million, $3.6 million and $3.7 million for the third quarter of 2023, second quarter of 2023 and third quarter of 2022, respectively. The $0.2 million increase in adjusted noninterest income for the third quarter of 2023 when compared to the second quarter of 2023 was primarily due to an increase in net gains on loans held-for-sale of $0.1 million and an increase in deposit, loan, and other income of $0.1 million. The net gains on loans held-for-sale consisted primarily of Small Business Administration (“SBA”) loans. The $0.1 million increase in adjusted noninterest income for the third of 2023 when compared to the third quarter of 2022 was primarily due to an increase in net gains on loans held-for-sale, primarily SBA, of $0.4 million and an increase in BOLI of $0.1 million, partially offset by a decrease in deposit, loan, and other income of $0.4 million.
Noninterest expenses totaled $35.8 million for the third quarter of 2023, $35.5 million for the second quarter of 2023 and $32.1 million for the third quarter of 2022. Noninterest expenses increased by $0.3 million from the second quarter of 2023 and was primarily attributable to increases in employee benefit expense accruals of $0.5 million, FDIC insurance expense of $0.1 million and occupancy and equipment of $0.1 million, partially offset by decreases in information technology and communications of $0.2 million, professional and consulting of $0.1 million and other expenses of $0.1 million. The increase in noninterest expenses of $3.6 million from the third quarter of 2022 was primarily attributable to increases in salaries and employee benefits of $1.4 million, FDIC insurance of $1.1 million, information technology and communications of $0.7 million, other expenses of $0.4 million, occupancy and equipment of $0.1 million and marketing and advertising of $0.1 million, partially offset by decreases in professional and consulting of $0.1 million and amortization of core deposit intangibles of $0.1 million. The increase in salaries and employee benefits from the third quarter of 2022 was primarily attributable to increased staff in both the revenue and back-office areas of the Bank as well as company-wide base salary increases. The increase in FDIC insurance expense when compared to the third quarter of 2022 is primarily attributable to balance sheet growth and a two-basis point increase in the Bank’s initial base rate. The increase in information technology and communications when compared to the third quarter of 2022 is primarily attributable to additional investments in technology, equipment, and software.
Income tax expense was $7.2 million for the third quarter of 2023, $7.4 million for the second quarter of 2023 and $10.4 million for the third quarter of 2022. The effective tax rates for the third quarter of 2023, second quarter of 2023 and third quarter of 2022 were 25.2%, 25.8% and 26.5%, respectively. The decrease in the effective tax rate when compared to the second quarter of 2023 and third quarter of 2022 is largely attributable to lower taxable income.Asset Quality
The provision for credit losses was $1.5 million for the third quarter of 2023, $3.0 million for the second quarter of 2023 and $10.0 million for the third quarter of 2022. The decrease in the provision for credit losses during the third quarter of 2023 when compared to the second quarter of 2023 was primarily attributable to lower specific reserves. The decrease in provision for credit losses during the third quarter of 2023 when compared to the third quarter of 2022 was primarily attributable to changes in forecasted macroeconomic conditions.
Nonperforming assets, which include nonaccrual loans and other real estate owned, were $56.1 million as of September 30, 2023, $44.7 million as of December 31, 2022 and $57.7 million as of September 30, 2022. Nonaccrual loans were $56.1 million as of September 30, 2023, $44.5 million as of December 31, 2022 and $57.5 million as of September 30, 2022. Nonperforming assets as a percentage of total assets were 0.58% as of September 30, 2023, 0.46% as of December 31, 2022 and 0.61% as of September 30, 2022. The ratio of nonaccrual loans to loans receivable was 0.69%, 0.55% and 0.73%, as of September 30, 2023, December 31, 2022 and September 30, 2022, respectively. Loans delinquent 30-89 days as a percentage of loans receivable were 0.04%, 0.02% and 0.01% as of September 30, 2023, December 31, 2022 and September 30, 2022, respectively. The annualized net loan charge-offs ratio was 0.12% for the third quarter of 2023, 0.22% for the fourth quarter of 2022 and 0.02% for the third quarter of 2022. The allowance for credit losses represented 1.08%, 1.12%, and 1.16% of loans receivable as of September 30, 2023, December 31, 2022 and September 30, 2022, respectively. The allowance for credit losses as a percentage of nonaccrual loans was 157.4% as of September 30, 2023, 203.6% as of December 31, 2022 and 159.7% as of September 30, 2022.
Selected Balance Sheet Items
The Company’s total assets were $9.7 billion as of September 30, 2023, an increase of $34 million from December 31, 2022. The increase in total assets was primarily due to an increase in loans receivable of $81 million, partially offset by decreases in investment securities of $53 million. Loans receivable was $8.2 billion as of September 30, 2023 and $8.1 billion as of December 31, 2022. Total deposits were $7.4 billion, an increase of $82 million from December 31, 2022.
The Company’s total stockholders’ equity was $1.2 billion as of September 30, 2023, an increase of $9 million from December 31, 2022. The increase was primarily attributable to an increase in retained earnings of $44 million, partially offset by an increase in accumulated other comprehensive losses of $21 million and an increase in treasury stock of $15 million. The increase in accumulated other comprehensive losses during the third quarter of 2023 resulted from higher interest rates. As of September 30, 2023, the Company’s tangible common equity ratio and tangible book value per share were 9.11% and $22.34, respectively, improved from 9.04% and $21.71, respectively, as of December 31, 2022. Total goodwill and other intangible assets were $214.6 million as of September 30, 2023, and $215.7 million as of December 31, 2022.
Share Repurchase Program
During the third quarter of 2023, the Company repurchased 316,789 shares of common stock at an average price of $19.45, leaving approximately 1.0 million shares authorized for repurchase under the current Board approved repurchase program. The Company may repurchase shares from time-to-time in the open market, in privately negotiated stock purchases or pursuant to any trading plan that may be adopted in accordance with Rule 10b5-1 of the Securities and Exchange Commission and applicable federal securities laws. The share repurchase plan does not obligate the Company to acquire any particular amount of common stock, and the plan may be modified or suspended at any time at the Company's discretion.
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 2023 Results Conference Call
Management will also host a conference call and audio webcast at 10:00 a.m. ET on October 26, 2023 to review the Company's financial performance and operating results. The conference call dial-in number is 1-646-307-1583, access code 9727224. 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 26, 2023 and ending on Thursday, November 2, 2023 by dialing 1-647-362-9199, access code 9727224. An online archive of the webcast will be available following the completion of the conference call at https://www.ConnectOneBank.com or at http://ir.connectonebank.com.
About ConnectOne Bancorp, Inc.
ConnectOne Bancorp, Inc., is a modern financial services company that operates, through its subsidiary, ConnectOne Bank, and the Bank’s fintech subsidiary, BoeFly, Inc. ConnectOne Bank is a high-performing commercial bank offering a full suite of banking & lending products and services that focus on small to middle-market businesses. BoeFly, Inc. is a fintech marketplace that connects borrowers in the franchise space with funding solutions through a network of partner banks. ConnectOne Bancorp, Inc. is traded on the Nasdaq Global Market under the trading symbol "CNOB," and information about ConnectOne may be found at https://www.connectonebank.com.
This news release contains certain forward-looking statements which are based on certain assumptions and describe future plans, strategies and expectations of the Company. These forward-looking statements are generally identified by use of the words "believe," "expect," "intend," "anticipate," "estimate," "project," or similar expressions. The Company's ability to predict results or the actual effect of future plans or strategies is inherently uncertain. Factors which could have a material adverse effect on the operations of the Company and its subsidiaries include, but are not limited to, those factors set forth in Item 1A – Risk Factors of the Company’s Annual Report on Form 10-K, as filed with the U.S. Securities and Exchange Commission, as supplemented by the Company’s subsequent filings with the U.S. Securities and Exchange Commission, and changes in interest rates, general economic conditions, legislative/regulatory changes, monetary and fiscal policies of the U.S. Government, including policies of the U.S. Treasury and the Federal Reserve Board, the quality or composition of the loan or investment portfolios, demand for loan products, deposit flows, competition, demand for financial services in the Company's market area, changes in accounting principles and guidelines and the impact of the 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 Vice President & 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, | ||||||||||
| 2023 | 2022 | 2022 | ||||||||||
| (unaudited) | (unaudited) | |||||||||||
| ASSETS | ||||||||||||
| Cash and due from banks | $ | 56,170 | $ | 61,629 | $ | 58,852 | ||||||
| Interest-bearing deposits with banks | 197,128 | 206,686 | 274,992 | |||||||||
| Cash and cash equivalents | 253,298 | 268,315 | 333,844 | |||||||||
| Investment securities | 581,867 | 634,884 | 623,629 | |||||||||
| Equity securities | 17,677 | 15,811 | 15,563 | |||||||||
| Loans held-for-sale | - | 13,772 | 8,080 | |||||||||
| Loans receivable | 8,181,109 | 8,099,689 | 7,900,450 | |||||||||
| Less: Allowance for credit losses - loans | 88,230 | 90,513 | 91,717 | |||||||||
| Net loans receivable | 8,092,879 | 8,009,176 | 7,808,733 | |||||||||
| Investment in restricted stock, at cost | 49,387 | 46,604 | 45,324 | |||||||||
| Bank premises and equipment, net | 28,432 | 27,800 | 28,519 | |||||||||
| Accrued interest receivable | 46,795 | 46,062 | 38,940 | |||||||||
| Bank owned life insurance | 236,009 | 231,328 | 229,800 | |||||||||
| Right of use operating lease assets | 11,229 | 10,179 | 10,196 | |||||||||
| Other real estate owned | - | 264 | 264 | |||||||||
| Goodwill | 208,372 | 208,372 | 208,372 | |||||||||
| Core deposit intangibles | 6,222 | 7,312 | 7,721 | |||||||||
| Other assets | 146,718 | 125,069 | 119,267 | |||||||||
| Total assets | $ | 9,678,885 | $ | 9,644,948 | $ | 9,478,252 | ||||||
| LIABILITIES | ||||||||||||
| Deposits: | ||||||||||||
| Noninterest-bearing | $ | 1,224,125 | $ | 1,501,614 | $ | 1,665,658 | ||||||
| Interest-bearing | 6,214,370 | 5,855,008 | 5,644,852 | |||||||||
| Total deposits | 7,438,495 | 7,356,622 | 7,310,510 | |||||||||
| Borrowings | 887,590 | 857,622 | 829,953 | |||||||||
| Subordinated debentures, net | 79,313 | 153,255 | 153,179 | |||||||||
| Operating lease liabilities | 12,424 | 11,397 | 11,454 | |||||||||
| Other liabilities | 72,909 | 87,301 | 24,861 | |||||||||
| Total liabilities | 8,490,731 | 8,466,197 | 8,329,957 | |||||||||
| 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 | 32,027 | 30,126 | 28,756 | |||||||||
| Retained earnings | 579,776 | 535,915 | 510,957 | |||||||||
| Treasury stock | (68,108 | ) | (52,799 | ) | (52,799 | ) | ||||||
| Accumulated other comprehensive loss | (53,414 | ) | (32,364 | ) | (36,492 | ) | ||||||
| Total stockholders' equity | 1,188,154 | 1,178,751 | 1,148,295 | |||||||||
| Total liabilities and stockholders' equity | $ | 9,678,885 | $ | 9,644,948 | $ | 9,478,252 | ||||||
| CONNECTONE BANCORP, INC. AND SUBSIDIARIES | ||||||||||||||||
| CONSOLIDATED STATEMENTS OF INCOME | ||||||||||||||||
| (dollars in thousands, except for per share data) | ||||||||||||||||
| Three Months Ended | Nine Months Ended | |||||||||||||||
| 09/30/23 | 09/30/22 | 09/30/23 | 09/30/22 | |||||||||||||
| Interest income | ||||||||||||||||
| Interest and fees on loans | $ | 115,405 | $ | 90,731 | $ | 333,356 | $ | 248,041 | ||||||||
| Interest and dividends on investment securities: | ||||||||||||||||
| Taxable | 4,128 | 4,063 | 12,386 | 8,487 | ||||||||||||
| Tax-exempt | 1,136 | 1,083 | 3,475 | 2,708 | ||||||||||||
| Dividends | 907 | 438 | 2,750 | 943 | ||||||||||||
| Interest on federal funds sold and other short-term investments | 2,110 | 665 | 9,141 | 1,098 | ||||||||||||
| Total interest income | 123,686 | 96,980 | 361,108 | 261,277 | ||||||||||||
| Interest expense | ||||||||||||||||
| Deposits | 56,043 | 13,299 | 146,844 | 24,018 | ||||||||||||
| Borrowings | 5,286 | 5,520 | 20,980 | 13,149 | ||||||||||||
| Total interest expense | 61,329 | 18,819 | 167,824 | 37,167 | ||||||||||||
| Net interest income | 62,357 | 78,161 | 193,284 | 224,110 | ||||||||||||
| Provision for credit losses | 1,500 | 10,000 | 5,500 | 14,450 | ||||||||||||
| Net interest income after provision for credit losses | 60,857 | 68,161 | 187,784 | 209,660 | ||||||||||||
| Noninterest income | ||||||||||||||||
| Deposit, loan and other income | 1,605 | 1,969 | 4,553 | 5,578 | ||||||||||||
| Income on bank owned life insurance | 1,597 | 1,521 | 4,681 | 4,069 | ||||||||||||
| Net gains on sale of loans held-for-sale | 633 | 262 | 1,232 | 1,519 | ||||||||||||
| Net losses on equity securities | (273 | ) | (430 | ) | (674 | ) | (1,431 | ) | ||||||||
| Total noninterest income | 3,562 | 3,322 | 9,792 | 9,735 | ||||||||||||
| Noninterest expenses | ||||||||||||||||
| Salaries and employee benefits | 22,251 | 20,882 | 66,213 | 59,041 | ||||||||||||
| Occupancy and equipment | 2,738 | 2,600 | 8,176 | 7,262 | ||||||||||||
| FDIC insurance | 1,800 | 720 | 4,465 | 2,051 | ||||||||||||
| Professional and consulting | 1,834 | 1,980 | 5,960 | 5,896 | ||||||||||||
| Marketing and advertising | 554 | 461 | 1,642 | 1,238 | ||||||||||||
| Information technology and communications | 3,487 | 2,747 | 10,192 | 8,414 | ||||||||||||
| Amortization of core deposit intangible | 347 | 409 | 1,090 | 1,276 | ||||||||||||
| Increase in value of acquisition price | - | - | - | 1,516 | ||||||||||||
| Other expenses | 2,773 | 2,344 | 8,366 | 6,382 | ||||||||||||
| Total noninterest expenses | 35,784 | 32,143 | 106,104 | 93,076 | ||||||||||||
| Income before income tax expense | 28,635 | 39,340 | 91,472 | 126,319 | ||||||||||||
| Income tax expense | 7,228 | 10,425 | 23,742 | 33,665 | ||||||||||||
| Net income | 21,407 | 28,915 | 67,730 | 92,654 | ||||||||||||
| Preferred dividends | 1,509 | 1,509 | 4,527 | 4,527 | ||||||||||||
| Net income available to common stockholders | $ | 19,898 | $ | 27,406 | $ | 63,203 | $ | 88,127 | ||||||||
| Earnings per common share: | ||||||||||||||||
| Basic | $ | 0.51 | $ | 0.70 | $ | 1.62 | $ | 2.24 | ||||||||
| Diluted | 0.51 | 0.70 | 1.61 | 2.23 | ||||||||||||
| 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. 31, | Sep. 30, | ||||||||||||||||
| 2023 | 2023 | 2023 | 2022 | 2022 | ||||||||||||||||
| Selected Financial Data | (dollars in thousands) | |||||||||||||||||||
| Total assets | $ | 9,678,885 | $ | 9,723,963 | $ | 9,960,467 | $ | 9,644,948 | $ | 9,478,252 | ||||||||||
| Loans receivable: | ||||||||||||||||||||
| Commercial | $ | 1,454,607 | $ | 1,451,400 | $ | 1,392,565 | $ | 1,443,942 | $ | 1,392,037 | ||||||||||
| Paycheck Protection Program ("PPP") loans | 9,872 | 10,845 | 11,300 | 11,374 | 11,458 | |||||||||||||||
| Commercial real estate | 3,288,704 | 3,237,559 | 3,245,990 | 3,170,760 | 3,087,354 | |||||||||||||||
| Multifamily | 2,559,927 | 2,604,230 | 2,600,251 | 2,641,886 | 2,624,726 | |||||||||||||||
| Commercial construction | 622,748 | 596,362 | 630,469 | 574,139 | 537,323 | |||||||||||||||
| Residential | 251,416 | 254,405 | 259,166 | 264,748 | 256,085 | |||||||||||||||
| Consumer | 936 | 1,416 | 1,435 | 2,312 | 1,030 | |||||||||||||||
| Gross loans | 8,188,210 | 8,156,217 | 8,141,176 | 8,109,161 | 7,910,013 | |||||||||||||||
| Unearned net origination fees | (7,101 | ) | (7,677 | ) | (9,057 | ) | (9,472 | ) | (9,563 | ) | ||||||||||
| Loans receivable | 8,181,109 | 8,148,540 | 8,132,119 | 8,099,689 | 7,900,450 | |||||||||||||||
| Loans held-for-sale | - | 1,089 | 11,197 | 13,772 | 8,080 | |||||||||||||||
| Total loans | $ | 8,181,109 | $ | 8,149,629 | $ | 8,143,316 | $ | 8,113,461 | $ | 7,908,530 | ||||||||||
| Investment and equity securities | $ | 599,544 | $ | 630,769 | $ | 647,026 | $ | 650,695 | $ | 639,192 | ||||||||||
| Goodwill and other intangible assets | 214,594 | 214,941 | 215,312 | 215,684 | 216,093 | |||||||||||||||
| Deposits: | ||||||||||||||||||||
| Noninterest-bearing demand | $ | 1,224,125 | $ | 1,356,293 | $ | 1,345,265 | $ | 1,501,614 | $ | 1,665,658 | ||||||||||
| Time deposits | 2,522,210 | 2,621,148 | 2,706,662 | 2,394,190 | 1,921,235 | |||||||||||||||
| Other interest-bearing deposits | 3,692,160 | 3,560,856 | 3,701,249 | 3,460,818 | 3,723,617 | |||||||||||||||
| Total deposits | $ | 7,438,495 | $ | 7,538,297 | $ | 7,753,176 | $ | 7,356,622 | $ | 7,310,510 | ||||||||||
| Borrowings | $ | 887,590 | $ | 827,601 | $ | 852,611 | $ | 857,622 | $ | 829,953 | ||||||||||
| Subordinated debentures, net | 79,313 | 79,187 | 79,060 | 153,255 | 153,179 | |||||||||||||||
| Total stockholders' equity | 1,188,154 | 1,199,397 | 1,190,970 | 1,178,751 | 1,148,295 | |||||||||||||||
| Quarterly Average Balances | ||||||||||||||||||||
| Total assets | $ | 9,625,625 | $ | 9,765,582 | $ | 9,700,530 | $ | 9,490,477 | $ | 9,030,589 | ||||||||||
| Loans receivable: | ||||||||||||||||||||
| Commercial (including PPP loans) | $ | 1,471,006 | $ | 1,427,153 | $ | 1,442,180 | $ | 1,456,247 | $ | 1,342,868 | ||||||||||
| Commercial real estate (including multifamily) | 5,821,794 | 5,847,147 | 5,813,388 | 5,758,594 | 5,455,714 | |||||||||||||||
| Commercial construction | 625,640 | 611,492 | 606,214 | 558,086 | 537,073 | |||||||||||||||
| Residential | 253,114 | 256,924 | 261,560 | 261,969 | 251,338 | |||||||||||||||
| Consumer | 4,972 | 6,733 | 3,894 | 4,630 | 2,361 | |||||||||||||||
| Gross loans | 8,176,526 | 8,149,449 | 8,127,236 | 8,039,526 | 7,589,354 | |||||||||||||||
| Unearned net origination fees | (7,387 | ) | (8,591 | ) | (9,664 | ) | (9,666 | ) | (9,178 | ) | ||||||||||
| Loans receivable | 8,169,139 | 8,140,858 | 8,117,572 | 8,029,860 | 7,580,176 | |||||||||||||||
| Loans held-for-sale | 171 | 8,516 | 13,463 | 7,933 | 2,195 | |||||||||||||||
| Total loans | $ | 8,169,310 | $ | 8,149,374 | $ | 8,131,035 | $ | 8,037,793 | $ | 7,582,371 | ||||||||||
| Investment and equity securities | $ | 628,429 | $ | 642,915 | $ | 649,744 | $ | 650,479 | $ | 687,291 | ||||||||||
| Goodwill and other intangible assets | 214,822 | 215,182 | 215,556 | 215,951 | 216,360 | |||||||||||||||
| Deposits: | ||||||||||||||||||||
| Noninterest-bearing demand | $ | 1,275,325 | $ | 1,347,268 | $ | 1,451,654 | $ | 1,610,044 | $ | 1,682,135 | ||||||||||
| Time deposits | 2,606,122 | 2,658,673 | 2,357,332 | 2,035,362 | 1,525,076 | |||||||||||||||
| Other interest-bearing deposits | 3,723,561 | 3,640,939 | 3,565,904 | 3,558,881 | 3,686,520 | |||||||||||||||
| Total deposits | $ | 7,605,008 | $ | 7,646,880 | $ | 7,374,890 | $ | 7,204,287 | $ | 6,893,731 | ||||||||||
| Borrowings | $ | 651,112 | $ | 756,303 | $ | 941,266 | $ | 913,960 | $ | 772,561 | ||||||||||
| Subordinated debentures, net | 79,230 | 79,104 | 103,637 | 153,205 | 153,129 | |||||||||||||||
| Total stockholders' equity | 1,202,647 | 1,197,043 | 1,191,216 | 1,165,588 | 1,160,448 | |||||||||||||||
| Three Months Ended | ||||||||||||||||||||
| Sep. 30, | Jun. 30, | Mar. 31, | Dec. 31, | Sep. 30, | ||||||||||||||||
| 2023 | 2023 | 2023 | 2022 | 2022 | ||||||||||||||||
| (dollars in thousands, except for per share data) | ||||||||||||||||||||
| Net interest income | $ | 62,357 | $ | 63,843 | $ | 67,084 | $ | 78,009 | $ | 78,161 | ||||||||||
| Provision for credit losses | 1,500 | 3,000 | 1,000 | 3,300 | 10,000 | |||||||||||||||
| Net interest income after provision for credit losses | 60,857 | 60,843 | 66,084 | 74,709 | 68,161 | |||||||||||||||
| Noninterest income | ||||||||||||||||||||
| Deposit, loan and other income | 1,605 | 1,545 | 1,403 | 1,894 | 1,969 | |||||||||||||||
| Income on bank owned life insurance | 1,597 | 1,553 | 1,531 | 1,528 | 1,521 | |||||||||||||||
| Net gains on sale of loans held-for-sale | 633 | 550 | 49 | 176 | 262 | |||||||||||||||
| Net losses on equity securities | (273 | ) | (210 | ) | (191 | ) | (90 | ) | (430 | ) | ||||||||||
| Total noninterest income | 3,562 | 3,438 | 2,792 | 3,508 | 3,322 | |||||||||||||||
| Noninterest expenses | ||||||||||||||||||||
| Salaries and employee benefits | 22,251 | 21,726 | 22,236 | 21,676 | 20,882 | |||||||||||||||
| Occupancy and equipment | 2,738 | 2,677 | 2,761 | 2,603 | 2,600 | |||||||||||||||
| FDIC insurance | 1,800 | 1,715 | 950 | 830 | 720 | |||||||||||||||
| Professional and consulting | 1,834 | 1,932 | 2,194 | 2,157 | 1,980 | |||||||||||||||
| Marketing and advertising | 554 | 556 | 532 | 454 | 461 | |||||||||||||||
| Information technology and communications | 3,487 | 3,644 | 3,061 | 2,694 | 2,747 | |||||||||||||||
| Amortization of core deposit intangible | 347 | 371 | 372 | 409 | 409 | |||||||||||||||
| Other expenses | 2,773 | 2,829 | 2,764 | 2,489 | 2,344 | |||||||||||||||
| Total noninterest expenses | 35,784 | 35,450 | 34,870 | 33,312 | 32,143 | |||||||||||||||
| Income before income tax expense | 28,635 | 28,831 | 34,006 | 44,905 | 39,340 | |||||||||||||||
| Income tax expense | 7,228 | 7,437 | 9,077 | 12,348 | 10,425 | |||||||||||||||
| Net income | $ | 21,407 | $ | 21,394 | $ | 24,929 | $ | 32,557 | $ | 28,915 | ||||||||||
| Preferred dividends | 1,509 | 1,509 | 1,509 | 1,510 | 1,509 | |||||||||||||||
| Net income available to common stockholders | $ | 19,898 | $ | 19,885 | $ | 23,420 | $ | 31,047 | $ | 27,406 | ||||||||||
| Weighted average diluted common shares outstanding | 38,829,681 | 39,016,839 | 39,300,733 | 39,378,137 | 39,338,943 | |||||||||||||||
| Diluted EPS | $ | 0.51 | $ | 0.51 | $ | 0.59 | $ | 0.79 | $ | 0.70 | ||||||||||
| Reconciliation of GAAP Earnings to Pre-tax and Pre-provision Net Revenue | ||||||||||||||||||||
| Net income | $ | 21,407 | $ | 21,394 | $ | 24,929 | $ | 32,557 | $ | 28,915 | ||||||||||
| Income tax expense | 7,228 | 7,437 | 9,077 | 12,348 | 10,425 | |||||||||||||||
| Provision for credit losses | 1,500 | 3,000 | 1,000 | 3,300 | 10,000 | |||||||||||||||
| Pre-tax and pre-provision net revenue | $ | 30,135 | $ | 31,831 | $ | 35,006 | $ | 48,205 | $ | 49,340 | ||||||||||
| Return on Assets Measures | ||||||||||||||||||||
| Average assets | $ | 9,625,625 | $ | 9,765,582 | $ | 9,700,530 | $ | 9,490,477 | $ | 9,030,589 | ||||||||||
| Return on avg. assets | 0.88 | % | 0.88 | % | 1.04 | % | 1.36 | % | 1.27 | % | ||||||||||
| Return on avg. assets (pre-tax and pre-provision) | 1.24 | 1.31 | 1.46 | 2.02 | 2.17 | |||||||||||||||
| Three Months Ended | ||||||||||||||||||||
| Sep. 30, | Jun. 30, | Mar. 31, | Dec. 31, | Sep. 30, | ||||||||||||||||
| 2023 | 2023 | 2023 | 2022 | 2022 | ||||||||||||||||
| Return on Equity Measures | (dollars in thousands) | |||||||||||||||||||
| Average stockholders' equity | $ | 1,202,647 | $ | 1,197,043 | $ | 1,191,216 | $ | 1,165,588 | $ | 1,160,448 | ||||||||||
| Less: average preferred stock | (110,927 | ) | (110,927 | ) | (110,927 | ) | (110,927 | ) | (110,927 | ) | ||||||||||
| Average common equity | $ | 1,091,720 | $ | 1,086,116 | $ | 1,080,289 | $ | 1,054,661 | $ | 1,049,521 | ||||||||||
| Less: average intangible assets | (214,822 | ) | (215,182 | ) | (215,556 | ) | (215,951 | ) | (216,360 | ) | ||||||||||
| Average tangible common equity | $ | 876,898 | $ | 870,934 | $ | 864,733 | $ | 838,710 | $ | 833,161 | ||||||||||
| Return on avg. common equity (GAAP) | 7.23 | % | 7.34 | % | 8.79 | % | 11.68 | % | 10.36 | % | ||||||||||
| Return on avg. tangible common equity ("TCE") (non-GAAP) (1) | 9.11 | 9.28 | 11.11 | 14.82 | 13.19 | |||||||||||||||
| Return on avg. tangible common equity (pre-tax and pre-provision) | 13.74 | 14.78 | 16.54 | 22.94 | 23.63 | |||||||||||||||
| Efficiency Measures | ||||||||||||||||||||
| Total noninterest expenses | $ | 35,784 | $ | 35,450 | $ | 34,870 | $ | 33,312 | $ | 32,143 | ||||||||||
| Amortization of core deposit intangibles | (347 | ) | (371 | ) | (372 | ) | (409 | ) | (409 | ) | ||||||||||
| Operating noninterest expense | $ | 35,437 | $ | 35,079 | $ | 34,498 | $ | 32,903 | $ | 31,734 | ||||||||||
| Net interest income (tax equivalent basis) | $ | 63,208 | $ | 64,627 | $ | 67,828 | $ | 78,773 | $ | 78,850 | ||||||||||
| Noninterest income | 3,562 | 3,438 | 2,792 | 3,508 | 3,322 | |||||||||||||||
| Net losses on equity securities | 273 | 210 | 191 | 90 | 430 | |||||||||||||||
| Operating revenue | $ | 67,043 | $ | 68,275 | $ | 70,811 | $ | 82,371 | $ | 82,602 | ||||||||||
| Operating efficiency ratio (non-GAAP) (2) | 52.9 | % | 51.4 | % | 48.7 | % | 39.9 | % | 38.4 | % | ||||||||||
| Net Interest Margin | ||||||||||||||||||||
| Average interest-earning assets | $ | 9,089,431 | $ | 9,228,079 | $ | 9,174,167 | $ | 8,972,063 | $ | 8,500,316 | ||||||||||
| Net interest income (tax equivalent basis) | $ | 63,208 | $ | 64,627 | $ | 67,828 | $ | 78,773 | $ | 78,850 | ||||||||||
| Impact of purchase accounting fair value marks | (419 | ) | (575 | ) | (839 | ) | (837 | ) | (885 | ) | ||||||||||
| Adjusted net interest income (tax equivalent basis) | $ | 62,789 | $ | 64,052 | $ | 66,989 | $ | 77,936 | $ | 77,965 | ||||||||||
| Net interest margin (GAAP) | 2.76 | % | 2.81 | % | 3.00 | % | 3.48 | % | 3.68 | % | ||||||||||
| Adjusted net interest margin (non-GAAP) (3) | 2.74 | 2.78 | 2.96 | 3.45 | 3.64 | |||||||||||||||
| (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. 31, | Sep. 30, | ||||||||||||||||
| 2023 | 2023 | 2023 | 2022 | 2022 | ||||||||||||||||
| Capital Ratios and Book Value per Share | (dollars in thousands, except for per share data) | |||||||||||||||||||
| Stockholders equity | $ | 1,188,154 | $ | 1,199,397 | $ | 1,190,970 | $ | 1,178,751 | $ | 1,148,295 | ||||||||||
| Less: preferred stock | (110,927 | ) | (110,927 | ) | (110,927 | ) | (110,927 | ) | (110,927 | ) | ||||||||||
| Common equity | $ | 1,077,227 | $ | 1,088,470 | $ | 1,080,043 | $ | 1,067,824 | $ | 1,037,368 | ||||||||||
| Less: intangible assets | (214,594 | ) | (214,941 | ) | (215,312 | ) | (215,684 | ) | (216,093 | ) | ||||||||||
| Tangible common equity | $ | 862,633 | $ | 873,529 | $ | 864,731 | $ | 852,140 | $ | 821,275 | ||||||||||
| Total assets | $ | 9,678,885 | $ | 9,723,963 | $ | 9,960,467 | $ | 9,644,948 | $ | 9,478,252 | ||||||||||
| Less: intangible assets | (214,594 | ) | (214,941 | ) | (215,312 | ) | (215,684 | ) | (216,093 | ) | ||||||||||
| Tangible assets | $ | 9,464,291 | $ | 9,509,022 | $ | 9,745,155 | $ | 9,429,264 | $ | 9,262,159 | ||||||||||
| Common shares outstanding | 38,621,970 | 38,966,652 | 39,179,051 | 39,243,123 | 39,243,123 | |||||||||||||||
| Common equity ratio (GAAP) | 11.13 | % | 11.19 | % | 10.84 | % | 11.07 | % | 10.94 | % | ||||||||||
| Tangible common equity ratio (non-GAAP) (4) | 9.11 | 9.19 | 8.87 | 9.04 | 8.87 | |||||||||||||||
| Regulatory capital ratios (Bancorp): | ||||||||||||||||||||
| Leverage ratio | 10.86 | % | 10.62 | % | 10.60 | % | 10.68 | % | 10.95 | % | ||||||||||
| Common equity Tier 1 risk-based ratio | 10.64 | 10.55 | 10.55 | 10.30 | 10.20 | |||||||||||||||
| Risk-based Tier 1 capital ratio | 11.98 | 11.90 | 11.92 | 11.66 | 11.58 | |||||||||||||||
| Risk-based total capital ratio | 13.90 | 13.83 | 13.85 | 14.45 | 14.45 | |||||||||||||||
| Regulatory capital ratios (Bank): | ||||||||||||||||||||
| Leverage ratio | 11.23 | % | 10.95 | % | 10.62 | % | 10.64 | % | 10.91 | % | ||||||||||
| Common equity Tier 1 risk-based ratio | 12.38 | 12.26 | 11.93 | 11.60 | 11.53 | |||||||||||||||
| Risk-based Tier 1 capital ratio | 12.38 | 12.26 | 11.93 | 11.60 | 11.53 | |||||||||||||||
| Risk-based total capital ratio | 13.43 | 13.33 | 13.28 | 13.02 | 13.00 | |||||||||||||||
| Book value per share (GAAP) | $ | 27.89 | $ | 27.93 | $ | 27.57 | $ | 27.21 | $ | 26.43 | ||||||||||
| Tangible book value per share (non-GAAP) (5) | 22.34 | 22.42 | 22.07 | 21.71 | 20.93 | |||||||||||||||
| Net Loan (Recoveries) Charge-Off Detail | ||||||||||||||||||||
| Net loan charge-offs (recoveries): | ||||||||||||||||||||
| Charge-offs | $ | 2,487 | $ | 1,118 | $ | 4,484 | $ | 4,456 | $ | 413 | ||||||||||
| Recoveries | (8 | ) | (76 | ) | (1 | ) | - | (53 | ) | |||||||||||
| Net loan charge-offs (recoveries) | $ | 2,479 | $ | 1,042 | $ | 4,483 | $ | 4,456 | $ | 360 | ||||||||||
| Net loan charge-offs (recoveries) as a % of average loans receivable (annualized) | 0.12 | % | 0.05 | % | 0.22 | % | 0.22 | % | 0.02 | % | ||||||||||
| Asset Quality | ||||||||||||||||||||
| Nonaccrual loans | $ | 56,059 | $ | 51,496 | $ | 47,667 | $ | 44,454 | $ | 57,447 | ||||||||||
| OREO | - | - | - | 264 | 264 | |||||||||||||||
| Nonperforming assets | $ | 56,059 | $ | 51,496 | $ | 47,667 | $ | 44,718 | $ | 57,711 | ||||||||||
| Allowance for credit losses - loans ("ACL") | 88,230 | 89,205 | 87,002 | 90,513 | 91,717 | |||||||||||||||
| Loans receivable | $ | 8,181,109 | $ | 8,148,540 | $ | 8,132,119 | $ | 8,099,689 | $ | 7,900,450 | ||||||||||
| Less: PPP loans | 9,872 | 10,845 | 11,300 | 11,374 | 11,458 | |||||||||||||||
| Loans receivable (excluding PPP loans) | $ | 8,171,237 | $ | 8,137,695 | $ | 8,120,819 | $ | 8,088,315 | $ | 7,888,992 | ||||||||||
| Nonaccrual loans as a % of loans receivable | 0.69 | % | 0.63 | % | 0.59 | % | 0.55 | % | 0.73 | % | ||||||||||
| Nonperforming assets as a % of total assets | 0.58 | 0.53 | 0.48 | 0.46 | 0.61 | |||||||||||||||
| ACL as a % of loans receivable | 1.08 | 1.09 | 1.07 | 1.12 | 1.16 | |||||||||||||||
| ACL as a % of nonaccrual loans | 157.4 | 173.2 | 182.5 | 203.6 | 159.7 | |||||||||||||||
| (4) Tangible common equity divided by tangible assets. | ||||||||||||||||||||
| (5) Tangible common equity divided by common shares outstanding at period-end. | ||||||||||||||||||||
| CONNECTONE BANCORP, INC. | |||||||||||||||||||||||||||||
| NET INTEREST MARGIN ANALYSIS | |||||||||||||||||||||||||||||
| (dollars in thousands) | |||||||||||||||||||||||||||||
| For the Quarter Ended | |||||||||||||||||||||||||||||
| September 30, 2023 | June 30, 2023 | September 30, 2022 | |||||||||||||||||||||||||||
| Average | Average | Average | |||||||||||||||||||||||||||
| Interest-earning assets: | Balance | Interest | Rate (7) | Balance | Interest | Rate (7) | Balance | Interest | Rate (7) | ||||||||||||||||||||
| Investment securities (1) (2) | $ | 723,408 | $ | 5,566 | 3.05 | % | $ | 726,315 | $ | 5,607 | 3.10 | % | $ | 740,394 | $ | 5,434 | 2.91 | % | |||||||||||
| Loans receivable and loans held-for-sale (2) (3) (4) | 8,169,310 | 115,954 | 5.63 | 8,149,374 | 111,501 | 5.49 | 7,582,371 | 91,132 | 4.77 | ||||||||||||||||||||
| Federal funds sold and interest- | |||||||||||||||||||||||||||||
| bearing deposits with banks | 158,155 | 2,110 | 5.29 | 309,458 | 4,056 | 5.26 | 135,331 | 665 | 1.95 | ||||||||||||||||||||
| Restricted investment in bank stock | 38,558 | 907 | 9.33 | 42,932 | 945 | 8.83 | 42,220 | 438 | 4.12 | ||||||||||||||||||||
| Total interest-earning assets | $ | 9,089,431 | 124,537 | 5.44 | $ | 9,228,079 | 122,109 | 5.31 | 8,500,316 | 97,669 | 4.56 | ||||||||||||||||||
| Allowance for loan losses | (89,966 | ) | (87,473 | ) | (84,307 | ) | |||||||||||||||||||||||
| Noninterest-earning assets | 626,160 | 624,976 | 614,580 | ||||||||||||||||||||||||||
| Total assets | $ | 9,625,625 | $ | 9,765,582 | $ | 9,030,589 | |||||||||||||||||||||||
| Interest-bearing liabilities: | |||||||||||||||||||||||||||||
| Time deposits | 2,606,122 | 25,437 | 3.87 | 2,658,673 | 23,778 | 3.59 | $ | 1,525,076 | 5,396 | 1.40 | |||||||||||||||||||
| Other interest-bearing deposits | 3,723,561 | 30,606 | 3.26 | 3,640,939 | 26,936 | 2.97 | 3,686,520 | 7,903 | 0.85 | ||||||||||||||||||||
| Total interest-bearing deposits | 6,329,683 | 56,043 | 3.51 | 6,299,612 | 50,714 | 3.23 | 5,211,596 | 13,299 | 1.01 | ||||||||||||||||||||
| Borrowings | 651,112 | 3,950 | 2.41 | 756,303 | 5,438 | 2.88 | 772,561 | 3,297 | 1.69 | ||||||||||||||||||||
| Subordinated debentures, net | 79,230 | 1,312 | 6.57 | 79,104 | 1,306 | 6.62 | 153,129 | 2,196 | 5.69 | ||||||||||||||||||||
| Finance lease | 1,603 | 24 | 5.94 | 1,658 | 24 | 5.81 | 1,813 | 27 | 5.91 | ||||||||||||||||||||
| Total interest-bearing liabilities | 7,061,628 | 61,329 | 3.45 | 7,136,677 | 57,482 | 3.23 | 6,139,099 | 18,819 | 1.22 | ||||||||||||||||||||
| Noninterest-bearing demand deposits | 1,275,325 | 1,347,268 | 1,682,135 | ||||||||||||||||||||||||||
| Other liabilities | 86,025 | 84,594 | 48,907 | ||||||||||||||||||||||||||
| Total noninterest-bearing liabilities | 1,361,350 | 1,431,862 | 1,731,042 | ||||||||||||||||||||||||||
| Stockholders' equity | 1,202,647 | 1,197,043 | 1,160,448 | ||||||||||||||||||||||||||
| Total liabilities and stockholders' equity | $ | 9,625,625 | $ | 9,765,582 | $ | 9,030,589 | |||||||||||||||||||||||
| Net interest income (tax equivalent basis) | 63,208 | 64,627 | 78,850 | ||||||||||||||||||||||||||
| Net interest spread (5) | 1.99 | % | 2.08 | % | 3.34 | % | |||||||||||||||||||||||
| Net interest margin (6) | 2.76 | % | 2.81 | % | 3.68 | % | |||||||||||||||||||||||
| Tax equivalent adjustment | (851 | ) | (784 | ) | (689 | ) | |||||||||||||||||||||||
| Net interest income | $ | 62,357 | $ | 63,843 | $ | 78,161 | |||||||||||||||||||||||
| (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. | |||||||||||||||||||||||||||||
| (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. | |||||||||||||||||||||||||||||
