ConnectOne Bancorp, Inc. Reports Fourth Quarter and Full-Year 2020 Results
ConnectOne Bancorp reported a net income of $25.6 million for Q4 2020, up from $24.8 million in Q3 2020 and $20.8 million in Q4 2019. Diluted earnings per share were $0.64 in Q4 2020. Full-year net income was $71.3 million, down from $73.4 million in 2019. The net interest margin increased to 3.50%, with total assets rising to $7.6 billion. The Board reinstated a share repurchase program and declared a $0.09 dividend per share. The loan loss provision for Q4 stood at $5.0 million, consistent with previous quarters.
- Q4 2020 net income increased to $25.6 million, a year-over-year rise.
- Diluted earnings per share improved to $0.64 in Q4 2020.
- Net interest margin widened to 3.50%, indicating improved profitability.
- Total assets reached $7.6 billion, reflecting significant growth.
- Reinstated share repurchase program with 0.6 million shares remaining.
- Board declared a cash dividend of $0.09 per share.
- Full-year net income decreased to $71.3 million from $73.4 million in 2019.
- Loan loss provisions remained high at $5.0 million in both Q4 and Q3 2020.
ENGLEWOOD CLIFFS, N.J., Jan. 28, 2021 (GLOBE NEWSWIRE) -- ConnectOne Bancorp, Inc. (Nasdaq: CNOB) (the “Company” or “ConnectOne”), parent company of ConnectOne Bank (the “Bank”), today reported net income of
Included in net income were provisions for loan losses of
Frank Sorrentino, ConnectOne’s Chairman and Chief Executive Officer, stated, “ConnectOne had a great finish to the year and I’m extremely pleased with the continued execution of our operating strategies. We reported record pretax, pre-provision earnings, our net interest margin widened for the fourth consecutive quarter, we have begun to reengage in organic loan growth, and our efficiency ratio improved to
“Our hearts go out to those who were impacted by the virus as we also watched our communities demonstrate resilience and strength. I’m equally proud of the role the ConnectOne team played in supporting our clients during this challenging time and grateful to our Board of Directors for their unwavering commitment and guidance,” Mr. Sorrentino added. “We continue to operate our Bank efficiently and effectively and are optimistic that the operating environment will continue to improve throughout 2021, resulting in strong growth, favorable lending spreads, and best-in-class performance metrics for ConnectOne. Over the past year, our capital and reserves have grown significantly, providing us the flexibility to grow both organically and through opportunistic M&A, and to return excess capital to shareholders. As a technology-forward bank, we look forward to furthering our investments in infrastructure, communication tools and digital channels as we position our bank for growth in a post-pandemic environment.”
“Underscoring our solid capital position and our continued confidence in ConnectOne’s future performance, we are pleased to announce that our Board of Directors has reinstated our previously suspended share repurchase program,” Mr. Sorrentino concluded. The Company has approximately 0.6 million shares remaining of the total authorized 1.2 million shares to repurchase.
Dividend Declaration
The Company announced that its Board of Directors declared a cash dividend on its common stock of
Operating Results
Fully taxable equivalent net interest income for the fourth quarter of 2020 was
Fully taxable equivalent net interest income for the fourth quarter of 2020 increased by
Noninterest income totaled
Noninterest expenses totaled
Income tax expense was
Asset Quality
The Company has postponed the adoption of the current expected credit losses (“CECL”) accounting standard as permitted under the accounting relief provisions of the CARES Act. While management is still evaluating its options, we currently anticipate CECL adoption to occur as of January 1, 2021.
The provision for loan losses was
Nonperforming assets, which includes nonaccrual loans and other real estate owned, were
The annualized net loan charge-off (recovery) ratio was
Selected Balance Sheet Items
The Company’s total assets were
The Company’s stockholders’ equity was
Use of Non-GAAP Financial Measures
In addition to the results presented in accordance with Generally Accepted Accounting Principles ("GAAP"), ConnectOne routinely supplements its evaluation with an analysis of certain non-GAAP measures. ConnectOne believes these non-GAAP financial measures, in addition to the related GAAP measures, provide meaningful information to investors in understanding our operating performance and trends. These non-GAAP measures have inherent limitations and are not required to be uniformly applied and are not audited. They should not be considered in isolation or as a substitute for an analysis of results reported under GAAP. These non-GAAP measures may not be comparable to similarly titled measures reported by other companies. Reconciliations of non-GAAP financial measures disclosed in this earnings release to the comparable GAAP measures are provided in the accompanying tables.
Fourth Quarter 2020 Results Conference Call
Management will also host a conference call and audio webcast at 10:00 a.m. ET on January 28, 2021 to review the Company's financial performance and operating results. The conference call dial-in number is 201-689-8471, access code 13714733. Please dial in at least five minutes before the start of the call to register. An audio webcast of the conference call will be available to the public, on a listen-only basis, via the "Investor Relations" link on the Company's website https://www.ConnectOneBank.com or at http://ir.connectonebank.com.
A replay of the conference call will be available beginning at approximately 1:00 p.m. ET on Thursday, January 28, 2021 and ending on Thursday, February 4, 2021 by dialing 412-317-6671, access code 13714733. 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., through its subsidiary, ConnectOne Bank offers a full suite of both commercial and consumer banking and lending products and services through its banking offices located across New York and New Jersey. 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 Securities Exchange Commission, as supplemented by the Company’s subsequent filings with the 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. Burns
Executive VP & CFO
201.816.4474; bburns@cnob.com
Media Contact:
Emily Holtzman, MWWPR
631.742.9568; eholtzman@mww.com
CONNECTONE BANCORP, INC. AND SUBSIDIARIES | |||||||
CONSOLIDATED CONDENSED STATEMENTS OF FINANCIAL CONDITION | |||||||
(in thousands) | |||||||
December 31, | December 31, | ||||||
2020 | 2019 | ||||||
(unaudited) | |||||||
ASSETS | |||||||
Cash and due from banks | $ | 63,637 | $ | 65,717 | |||
Interest-bearing deposits with banks | 240,119 | 135,766 | |||||
Cash and cash equivalents | 303,756 | 201,483 | |||||
Securities available-for-sale | 487,955 | 404,701 | |||||
Equity securities | 13,387 | 11,185 | |||||
Loans held-for-sale | 4,710 | 33,250 | |||||
Loans receivable | 6,236,307 | 5,113,527 | |||||
Less: Allowance for loan losses | 79,226 | 38,293 | |||||
Net loans receivable | 6,157,081 | 5,075,234 | |||||
Investment in restricted stock, at cost | 25,099 | 27,397 | |||||
Bank premises and equipment, net | 30,108 | 19,236 | |||||
Accrued interest receivable | 35,317 | 20,949 | |||||
Bank owned life insurance | 165,960 | 137,961 | |||||
Right of use operating lease assets | 16,159 | 15,137 | |||||
Goodwill | 208,372 | 162,574 | |||||
Core deposit intangibles | 10,977 | 5,460 | |||||
Other assets | 88,458 | 59,465 | |||||
Total assets | $ | 7,547,339 | $ | 6,174,032 | |||
LIABILITIES | |||||||
Deposits: | |||||||
Noninterest-bearing | $ | 1,339,108 | $ | 861,728 | |||
Interest-bearing | 4,620,116 | 3,905,814 | |||||
Total deposits | 5,959,224 | 4,767,542 | |||||
Borrowings | 425,954 | 500,293 | |||||
Operating lease liabilities | 18,026 | 16,449 | |||||
Subordinated debentures, net of debt issuance costs | 202,648 | 128,885 | |||||
Other liabilities | 26,177 | 29,673 | |||||
Total liabilities | 6,632,029 | 5,442,842 | |||||
COMMITMENTS AND CONTINGENCIES | |||||||
STOCKHOLDERS' EQUITY | |||||||
Common stock | 586,946 | 468,571 | |||||
Additional paid-in capital | 23,887 | 21,344 | |||||
Retained earnings | 331,951 | 271,782 | |||||
Treasury stock | (30,271 | ) | (29,360 | ) | |||
Accumulated other comprehensive income (loss) | 2,797 | (1,147 | ) | ||||
Total stockholders' equity | 915,310 | 731,190 | |||||
Total liabilities and stockholders' equity | $ | 7,547,339 | $ | 6,174,032 |
CONNECTONE BANCORP, INC. AND SUBSIDIARIES | |||||||||||||||
CONSOLIDATED STATEMENTS OF INCOME | |||||||||||||||
(dollars in thousands, except for per share data) | |||||||||||||||
Three Months Ended | Twelve Months Ended | ||||||||||||||
12-31-20 | 12-31-19 | 12-31-20 | 12-31-19 | ||||||||||||
Interest income | |||||||||||||||
Interest and fees on loans | $ | 73,123 | $ | 64,833 | $ | 296,611 | $ | 255,479 | |||||||
Interest and dividends on investment securities: | |||||||||||||||
Taxable | 1,373 | 1,700 | 6,456 | 9,131 | |||||||||||
Tax-exempt | 649 | 824 | 2,797 | 3,929 | |||||||||||
Dividends | 374 | 409 | 1,642 | 1,778 | |||||||||||
Interest on federal funds sold and other short-term investments | 69 | 242 | 694 | 1,167 | |||||||||||
Total interest income | 75,588 | 68,008 | 308,200 | 271,484 | |||||||||||
Interest expense | |||||||||||||||
Deposits | 9,630 | 16,272 | 52,386 | 65,570 | |||||||||||
Borrowings | 4,587 | 4,305 | 17,823 | 19,595 | |||||||||||
Total interest expense | 14,217 | 20,577 | 70,209 | 85,165 | |||||||||||
Net interest income | 61,371 | 47,431 | 237,991 | 186,319 | |||||||||||
Provision for loan losses | 5,000 | 500 | 41,000 | 8,100 | |||||||||||
Net interest income after provision for loan losses | 56,371 | 46,931 | 196,991 | 178,219 | |||||||||||
Noninterest income | |||||||||||||||
Income on bank owned life insurance | 1,314 | 914 | 5,007 | 3,484 | |||||||||||
Net gains on sale of loans held-for-sale | 841 | 169 | 2,085 | 512 | |||||||||||
Deposit, loan and other income | 1,300 | 1,209 | 7,077 | 4,025 | |||||||||||
Net (losses) gains on equity securities | (13 | ) | (46 | ) | 202 | 294 | |||||||||
Net (losses) gains on sale of securities available-for-sale | - | - | 29 | (280 | ) | ||||||||||
Total noninterest income | 3,442 | 2,246 | 14,400 | 8,035 | |||||||||||
Noninterest expenses | |||||||||||||||
Salaries and employee benefits | 14,581 | 12,881 | 58,758 | 49,135 | |||||||||||
Occupancy and equipment | 3,689 | 2,380 | 13,882 | 9,712 | |||||||||||
FDIC insurance | 948 | 795 | 4,002 | 2,011 | |||||||||||
Professional and consulting | 2,210 | 1,428 | 7,383 | 5,506 | |||||||||||
Marketing and advertising | 256 | 273 | 1,200 | 1,353 | |||||||||||
Data processing | 1,479 | 1,151 | 6,008 | 4,503 | |||||||||||
Merger and restructuring expenses | - | 871 | 14,640 | 8,955 | |||||||||||
Loss on extinguishment of debt | - | - | - | 1,047 | |||||||||||
Amortization of core deposit intangibles | 628 | 340 | 2,559 | 1,408 | |||||||||||
Increase in value of acquisition price | - | 2,333 | - | ||||||||||||
Other expenses | 2,611 | 2,078 | 10,236 | 8,598 | |||||||||||
Total noninterest expenses | 26,402 | 22,197 | 121,001 | 92,228 | |||||||||||
Income before income tax expense | 33,411 | 26,980 | 90,390 | 94,026 | |||||||||||
Income tax expense | 7,770 | 6,197 | 19,101 | 20,631 | |||||||||||
Net income | $ | 25,641 | $ | 20,783 | $ | 71,289 | $ | 73,395 | |||||||
Earnings per common share: | |||||||||||||||
Basic | $ | 0.64 | $ | 0.59 | $ | 1.80 | $ | 2.08 | |||||||
Diluted | 0.64 | 0.59 | 1.79 | 2.07 |
ConnectOne's management believes that the supplemental financial information, including non-GAAP measures provided below, is useful to investors. The non-GAAP measures should not be viewed as a substitute for financial results determined in accordance with GAAP, and are not necessarily comparable to non-GAAP financial measures presented by other companies. | |||||||||||||||||||
CONNECTONE BANCORP, INC. | |||||||||||||||||||
SUPPLEMENTAL GAAP AND NON-GAAP FINANCIAL MEASURES | |||||||||||||||||||
As of | |||||||||||||||||||
Dec. 31, | Sept. 30, | June 30, | Mar. 31, | Dec. 31, | |||||||||||||||
2020 | 2020 | 2020 | 2020 | 2019 | |||||||||||||||
Selected Financial Data | (dollars in thousands) | ||||||||||||||||||
Total assets | $ | 7,547,339 | $ | 7,449,559 | $ | 7,617,184 | $ | 7,279,327 | $ | 6,174,032 | |||||||||
Loans receivable: | |||||||||||||||||||
Commercial | $ | 1,092,404 | $ | 1,125,273 | $ | 1,151,025 | $ | 1,203,818 | $ | 1,096,224 | |||||||||
PPP loans | 397,492 | 474,022 | 473,999 | - | - | ||||||||||||||
Commercial real estate | 2,103,468 | 2,001,311 | 1,987,695 | 1,981,149 | 1,559,354 | ||||||||||||||
Multifamily | 1,712,153 | 1,703,290 | 1,723,273 | 1,762,651 | 1,518,400 | ||||||||||||||
Commercial construction | 617,747 | 614,112 | 673,893 | 676,836 | 620,969 | ||||||||||||||
Residential | 322,564 | 343,376 | 366,315 | 387,400 | 320,019 | ||||||||||||||
Consumer | 1,853 | 1,876 | 2,001 | 1,965 | 3,328 | ||||||||||||||
Gross loans | 6,247,681 | 6,263,260 | 6,378,201 | 6,013,819 | 5,118,294 | ||||||||||||||
Unearned net origination fees | (11,374 | ) | (12,209 | ) | (14,934 | ) | (4,509 | ) | (4,767 | ) | |||||||||
Loans receivable | 6,236,307 | 6,251,051 | 6,363,267 | 6,009,310 | 5,113,527 | ||||||||||||||
Loans held-for-sale | 4,710 | 8,508 | 11,212 | 32,425 | 33,250 | ||||||||||||||
Total loans | $ | 6,241,017 | $ | 6,259,559 | $ | 6,374,479 | $ | 6,041,735 | $ | 5,146,777 | |||||||||
Investment securities | $ | 501,342 | $ | 466,415 | $ | 431,833 | $ | 460,101 | $ | 415,886 | |||||||||
Goodwill and other intangible assets | 219,349 | 219,977 | 220,605 | 221,263 | 168,034 | ||||||||||||||
Deposits: | |||||||||||||||||||
Noninterest-bearing demand | $ | 1,339,108 |
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FAQ
What were ConnectOne Bancorp's Q4 2020 earnings?
ConnectOne Bancorp reported Q4 2020 net income of $25.6 million.
How much was the diluted earnings per share for CNOB in Q4 2020?
The diluted earnings per share for CNOB in Q4 2020 were $0.64.
What is the net interest margin for ConnectOne Bancorp in Q4 2020?
The net interest margin for ConnectOne Bancorp in Q4 2020 was 3.50%.
Did ConnectOne Bancorp reinstate its share repurchase program?
Yes, ConnectOne Bancorp reinstated its share repurchase program.
What is the cash dividend declared by ConnectOne Bancorp?
The cash dividend declared by ConnectOne Bancorp is $0.09 per share.
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CNOB Stock Data
944.24M
38.37M
6.7%
70.14%
1.6%
Banks - Regional
State Commercial Banks
United States of America
ENGLEWOOD CLIFFS
|