Exhibit 99.1
CONNECTONE BANCORP, INC. REPORTS
SECOND QUARTER 2023 RESULTS;
DECLARES COMMON AND PREFERRED DIVIDENDS
Englewood Cliffs, N.J., July 27, 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 second quarter of 2023 compared with $23.4 million for the first quarter of 2023 and $30.8 million for the second quarter of 2022. Diluted earnings per share were $0.51 for the second quarter of 2023 compared with $0.59 for the first quarter of 2023 and $0.78 for the second quarter of 2022. The decrease in net income available to common stockholders and diluted earnings per share from the first quarter of 2023 was primarily due to a decrease in net interest income of $3.2 million, an increase in provision for credit losses of $2.0 million and an increase in noninterest expenses of $0.6 million, partially offset by an increase in noninterest income of $0.6 million and a decrease in income tax expenses of $1.6 million. The decrease in net income available to common stockholders and diluted earnings per share from the second quarter of 2022 was primarily due to a decrease in net interest income of $11.7 million and an increase in noninterest expenses of $3.7 million, partially offset by an increase of $0.1 million in noninterest income and a decrease in income tax expenses of $4.5 million.
Pre-tax, pre-provision net revenue (“PPNR”) as a percent of average assets was 1.31%, 1.46% and 2.28% for the quarters ending June 30, 2023, March 31, 2023 and June 30, 2022, respectively.
Frank Sorrentino, ConnectOne’s Chairman and Chief Executive Officer stated, “ConnectOne’s operating performance remains strong and stable during this challenging economic environment, reflecting our core values which include a client-first focus and executing with a sense of urgency. Results include, most importantly, increased client deposits, fortification of liquidity sources and a reduction in brokered deposits and uninsured deposit liabilities. Our loan portfolio remained essentially flat, while our net interest margin, although compressing sequentially by 19 basis points, stabilized during the quarter at the approximate 2.80% level. Similarly, noninterest-bearing demand deposits, although down sequentially, remained relatively stable at their current level over the course of the second quarter. Meanwhile, our tangible common equity ratio increased to 9.19%, which is well above peer averages, and our tangible book value per share increased for the 13th consecutive quarter to $22.34. We also took advantage of market conditions during the quarter and repurchased 270,000 shares at an attractive average price of $15.32.
“Operationally, we’re integrating investments in technology to provide a better experience for our clients while driving increased productivity and efficiency. Our SBA lending platform continues to gain traction and we continue to see healthy diversification in our portfolio,” Mr. Sorrentino added. “Further, we’re seizing opportunities to attract high-performing, revenue-producing talent while simultaneously optimizing our staff count and managing expenses prudently.”
Mr. Sorrentino concluded, “Looking ahead, we remain well-positioned for the future. We have strong capital and liquidity levels, our credit performance continues to be strong, and we remain sharply focused on taking advantage of growth opportunities as they arise. By leveraging our results-oriented client-centric culture, continuing to invest in our valuable franchise and maintaining our long-standing financial discipline, we believe that ConnectOne is poised for continued long-term profitability.”
Dividend Declarations
The Company announced that its Board of Directors declared an increased 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 September 1, 2023, to common stockholders of record on August 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 September 1, 2023 to preferred stockholders of record on August 15, 2023.
Operating Results
Fully taxable equivalent net interest income for the second quarter of 2023 was $64.6 million, a decrease of $3.2 million, or 4.7%, from the first quarter of 2023 due to a 19 basis-point contraction of the net interest margin from 3.00% to 2.81%, partially offset by an increase in interest-earning assets of $53.9 million The increase in interest-earning assets from the first quarter of 2023 was attributable to increases in cash and cash equivalents of $49.2 million and loans of $18.3 million, offset by decreases in investment securities of $6.6 million and decreases in restricted investment in bank stock of $7.0 million. While the net interest margin benefitted from a 14 basis-point increase in the loan portfolio yield, to 5.49%, the average cost of deposits, including noninterest-bearing demand, increased by 46 basis points to 2.66% from 2.20% in the first quarter of 2023. Contributing to the increased cost of deposits was a $104.4 million, or 7.2%, decline in average noninterest-bearing deposits, although the balance of noninterest-bearing deposits remained relatively flat throughout the current quarter.
Fully taxable equivalent net interest income for the second quarter of 2023 decreased by $11.5 million, or 15.1%, from the second quarter of 2022. The decrease from the second quarter of 2022 resulted primarily from a 110 basis-point decrease of the net interest margin from 3.91% to 2.81%, partially offset by an increase in interest-earning assets of $1.4 billion. The contraction of the net interest margin for the second quarter of 2023 when compared to the second quarter of 2022 was primarily attributable to a 230 basis-point increase in the average costs of deposits, including noninterest-bearing deposits, partially offset by an 82 basis-point increase in the loan portfolio yield.
Noninterest income was $3.4 million in the second quarter of 2023, $2.8 million in the first quarter of 2023 and $3.4 million in the second quarter of 2022. Included in noninterest income were net losses on equity securities of $0.2 million, $0.2 million, and $0.4 million for the second quarter 2023, first quarter of 2023 and second quarter 2022, respectively. Excluding the equity securities losses, adjusted noninterest income was $3.6 million, $3.0 million and $3.8 million for the second quarter 2023, first quarter 2023 and second quarter 2022, respectively. The $0.6 million increase in adjusted noninterest income for the second quarter of 2023 when compared to the first quarter of 2023 was primarily due to an increase in net gains on sale of loans held-for-sale of $0.5 million and increases in deposit, loan, and other income of $0.1 million. The net gains on loan sales consisted primarily of Small Business Administration loans. The $0.1 million decrease in adjusted noninterest income for the second quarter of 2023 when compared to the second quarter of 2022 was primarily due to a decrease in deposit, loan, and other income of $0.3 million, partially offset by an increase in bank owned life insurance income of $0.2 million.
Noninterest expenses totaled $35.5 million for the second quarter of 2023, $34.9 million for the first quarter of 2023 and $31.7 million for the second quarter of 2022. Noninterest expenses increased by $0.6 million from the first quarter of 2023 and was primarily attributable to an increase in FDIC insurance expense of $0.8 million, information technology and communications expense of $0.6 million, and other expenses of $0.1 million, partially offset by decreases in salaries and employee benefits of $0.5 million, professional and consulting of $0.3 million, and occupancy and equipment of $0.1 million. The increase in noninterest expenses of $3.8 million from the second quarter of 2022 was primarily attributable to increases in salaries and employee benefits of $2.2 million, FDIC insurance of $1.0 million, information technology and communications of $0.8 million, other expenses of $0.7 million and marketing and advertising of $0.1 million, partially offset by decreases in BoeFly acquisition expense of $0.8 million and professional and consulting of $0.2 million. The increase in salaries and employee benefits from the second 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 both the first quarter of 2023 and the second 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 both the first quarter of 2023 and the second quarter of 2022 is primarily attributable to additional investments in technology, equipment, and software.
Income tax expense was $7.4 million for the second quarter of 2023, $9.1 million for the first quarter of 2023 and $11.9 million for the second quarter of 2022. The effective tax rates for the second quarter of 2023, first quarter of 2023 and second quarter of 2022 were 25.8%, 26.7% and 26.9%, respectively. The decrease in the effective tax rate when compared to the first quarter of 2023 and second quarter of 2022 is largely attributable to lower taxable income.
Asset Quality
The provision for credit losses was $3.0 million for the second quarter of 2023, $1.0 million for the first quarter of 2023 and $3.0 million for the second quarter of 2023. The increase in the provision for credit losses during the second quarter of 2023 when compared to the first quarter of 2023 was primarily attributable to specific reserves.
Nonperforming assets, which include nonaccrual loans and other real estate owned, were $51.5 million as of June 30, 2023, $44.7 million as of December 31, 2022 and $61.1 million as of June 30, 2022. Nonaccrual loans were $51.5 million as of June 30, 2023, $44.5 million as of December 31, 2022 and $60.8 million as of June 30, 2022. Nonperforming assets as a percentage of total assets were 0.53% as of June 30, 2023, 0.46% as of December 31, 2022 and 0.69% as of June 30, 2022. The ratio of nonaccrual loans to loans receivable was 0.63%, 0.55% and 0.84%, as of June 30, 2023, December 31, 2022 and June 30, 2022, respectively. Loans delinquent 30-89 days as a percentage of loans receivable were 0.04%, 0.02% and 0.05% as of June 30, 2023, December 31, 2022 and June 30, 2022, respectively. The annualized net loan charge-offs ratio was 0.05% for the second quarter of 2023, 0.23% for the fourth quarter of 2022 and 0.02% for the second quarter of 2023. The allowance for credit losses represented 1.09%, 1.12%, and 1.14% of loans receivable as of June 30, 2023, December 31, 2022 and June 30, 2022, respectively. The allowance for credit losses as a percentage of nonaccrual loans was 173.2% as of June 30, 2023, 203.6% as of December 31, 2022 and 136.2% as of June 30, 2022.
Selected Balance Sheet Items
The Company’s total assets were $9.7 billion as of June 30, 2023, an increase of $79 million from December 31, 2022. The increase in total assets was primarily due to increased cash and cash equivalents which were $264 million, an increase of $57 million from December 31, 2022. Loans receivable were $8.1 billion, an increase of $49 million from December 31, 2022. Total deposits were $7.5 billion, an increase of $182 million from December 31, 2022.
The Company’s total stockholders’ equity was $1.2 billion as of June 30, 2023, an increase of $21 million from December 31, 2022. The increase in retained earnings of $31 million was the primary reason for the overall increase in stockholders’ equity, in addition to an increase in additional paid-in capital of $1 million, partially offset by a decrease in accumulated other comprehensive income of $1 million and an increase in treasury stock of $9 million. As of June 30, 2023, the Company’s tangible common equity ratio and tangible book value per share were 9.19% and $22.34, respectively. As of December 31, 2022, the tangible common equity ratio and tangible book value per share were 9.04% and $21.71, respectively. Total goodwill and other intangible assets were $214.9 million as of June 30, 2023, and $215.7 million as of December 31, 2022.
Share Repurchase Program
During the second quarter of 2023, the Company repurchased 270,000 shares of common stock leaving approximately 1.3 million shares remaining 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.
Second Quarter 2023 Results Conference Call
Management will also host a conference call and audio webcast at 10:00 a.m. ET on July 27, 2023 to review the Company's financial performance and operating results. The conference call dial-in number is 1-412-317-5195, access code 10180068. 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, July 27, 2023 and ending on Thursday, August 3, 2023 by dialing 1-412-317-6671, access code 10180068. 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. Burns
Senior Executive Vice President & CFO
201.816.4474: bburns@cnob.com
Media Contact:
Shannan Weeks
MWW
732.299.7890: sweeks@mww.com
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CONNECTONE BANCORP, INC. AND SUBSIDIARIES |
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CONSOLIDATED CONDENSED STATEMENTS OF FINANCIAL CONDITION |
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(in thousands) |
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June 30, |
December 31, |
June 30, |
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2023 |
2022 |
2022 |
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(unaudited) |
(unaudited) |
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ASSETS |
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Cash and due from banks |
$ | 56,286 | $ | 61,629 | $ | 58,807 | ||||||
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Interest-bearing deposits with banks |
263,638 | 206,686 | 240,513 | |||||||||
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Cash and cash equivalents |
319,924 | 268,315 | 299,320 | |||||||||
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Investment securities |
612,819 | 634,884 | 675,941 | |||||||||
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Equity securities |
17,950 | 15,811 | 15,993 | |||||||||
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Loans held-for-sale |
1,089 | 13,772 | 3,182 | |||||||||
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Loans receivable |
8,148,540 | 8,099,689 | 7,274,573 | |||||||||
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Less: Allowance for credit losses - loans |
89,205 | 90,513 | 82,739 | |||||||||
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Net loans receivable |
8,059,335 | 8,009,176 | 7,191,834 | |||||||||
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Investment in restricted stock, at cost |
46,688 | 46,604 | 47,287 | |||||||||
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Bank premises and equipment, net |
29,093 | 27,800 | 28,391 | |||||||||
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Accrued interest receivable |
46,237 | 46,062 | 34,615 | |||||||||
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Bank owned life insurance |
234,412 | 231,328 | 228,279 | |||||||||
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Right of use operating lease assets |
8,874 | 10,179 | 10,809 | |||||||||
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Other real estate owned |
- | 264 | 316 | |||||||||
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Goodwill |
208,372 | 208,372 | 208,372 | |||||||||
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Core deposit intangibles |
6,569 | 7,312 | 8,130 | |||||||||
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Other assets |
132,601 | 125,069 | 89,037 | |||||||||
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Total assets |
$ | 9,723,963 | $ | 9,644,948 | $ | 8,841,506 | ||||||
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LIABILITIES |
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Deposits: |
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Noninterest-bearing |
$ | 1,356,293 | $ | 1,501,614 | $ | 1,712,875 | ||||||
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Interest-bearing |
6,182,004 | 5,855,008 | 4,904,724 | |||||||||
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Total deposits |
7,538,297 | 7,356,622 | 6,617,599 | |||||||||
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Borrowings |
827,601 | 857,622 | 874,964 | |||||||||
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Subordinated debentures, net |
79,187 | 153,255 | 153,103 | |||||||||
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Operating lease liabilities |
10,007 | 11,397 | 12,116 | |||||||||
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Other liabilities |
69,474 | 87,301 | 40,577 | |||||||||
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Total liabilities |
8,524,566 | 8,466,197 | 7,698,359 | |||||||||
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COMMITMENTS AND CONTINGENCIES |
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STOCKHOLDERS' EQUITY |
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Preferred stock |
110,927 | 110,927 | 110,927 | |||||||||
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Common stock |
586,946 | 586,946 | 586,946 | |||||||||
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Additional paid-in capital |
30,740 | 30,126 | 27,536 | |||||||||
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Retained earnings |
566,498 | 535,915 | 489,640 | |||||||||
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Treasury stock |
(61,877 | ) | (52,799 | ) | (52,799 | ) | ||||||
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Accumulated other comprehensive loss |
(33,837 | ) | (32,364 | ) | (19,103 | ) | ||||||
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Total stockholders' equity |
1,199,397 | 1,178,751 | 1,143,147 | |||||||||
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Total liabilities and stockholders' equity |
$ | 9,723,963 | $ | 9,644,948 | $ | 8,841,506 | ||||||
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CONNECTONE BANCORP, INC. AND SUBSIDIARIES |
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CONSOLIDATED STATEMENTS OF INCOME |
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(dollars in thousands, except for per share data) |
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Three Months Ended |
Six Months Ended |
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06/30/23 |
06/30/22 |
06/30/23 |
06/30/22 |
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Interest income |
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Interest and fees on loans |
$ | 111,048 | $ | 81,285 | $ | 217,951 | $ | 157,310 | ||||||||
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Interest and dividends on investment securities: |
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Taxable |
4,029 | 2,551 | 8,258 | 4,424 | ||||||||||||
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Tax-exempt |
1,247 | 916 | 2,339 | 1,625 | ||||||||||||
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Dividends |
945 | 291 | 1,843 | 505 | ||||||||||||
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Interest on federal funds sold and other short-term investments |
4,056 | 313 | 7,031 | 433 | ||||||||||||
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Total interest income |
121,325 | 85,356 | 237,422 | 164,297 | ||||||||||||
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Interest expense |
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Deposits |
50,714 | 5,709 | 90,801 | 10,719 | ||||||||||||
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Borrowings |
6,768 | 4,056 | 15,694 | 7,629 | ||||||||||||
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Total interest expense |
57,482 | 9,765 | 106,495 | 18,348 | ||||||||||||
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Net interest income |
63,843 | 75,591 | 130,927 | 145,949 | ||||||||||||
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Provision for credit losses |
3,000 | 3,000 | 4,000 | 4,450 | ||||||||||||
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Net interest income after provision for credit losses |
60,843 | 72,591 | 126,927 | 141,499 | ||||||||||||
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Noninterest income |
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Deposit, loan and other income |
1,545 | 1,866 | 2,948 | 3,609 | ||||||||||||
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Income on bank owned life insurance |
1,553 | 1,342 | 3,084 | 2,548 | ||||||||||||
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Net gains on sale of loans held-for-sale |
550 | 556 | 599 | 1,257 | ||||||||||||
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Net losses on equity securities |
(210 | ) | (405 | ) | (401 | ) | (1,001 | ) | ||||||||
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Total noninterest income |
3,438 | 3,359 | 6,230 | 6,413 | ||||||||||||
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Noninterest expenses |
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Salaries and employee benefits |
21,726 | 19,519 | 43,962 | 38,159 | ||||||||||||
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Occupancy and equipment |
2,677 | 2,733 | 5,438 | 4,662 | ||||||||||||
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FDIC insurance |
1,715 | 725 | 2,665 | 1,331 | ||||||||||||
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Professional and consulting |
1,932 | 2,124 | 4,126 | 3,916 | ||||||||||||
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Marketing and advertising |
556 | 426 | 1,088 | 777 | ||||||||||||
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Information technology and communications |
3,644 | 2,801 | 6,705 | 5,667 | ||||||||||||
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Amortization of core deposit intangible |
371 | 434 | 743 | 867 | ||||||||||||
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Increase in value of acquisition price |
- | 833 | - | 1,516 | ||||||||||||
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Other expenses |
2,829 | 2,108 | 5,593 | 4,038 | ||||||||||||
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Total noninterest expenses |
35,450 | 31,703 | 70,320 | 60,933 | ||||||||||||
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Income before income tax expense |
28,831 | 44,247 | 62,837 | 86,979 | ||||||||||||
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Income tax expense |
7,437 | 11,889 | 16,514 | 23,240 | ||||||||||||
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Net income |
21,394 | 32,358 | 46,323 | 63,739 | ||||||||||||
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Preferred dividends |
1,509 | 1,509 | 3,018 | 3,018 | ||||||||||||
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Net income available to common stockholders |
$ | 19,885 | $ | 30,849 | $ | 43,305 | $ | 60,721 | ||||||||
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Earnings per common share: |
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Basic |
$ | 0.51 | $ | 0.78 | $ | 1.10 | $ | 1.54 | ||||||||
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Diluted |
0.51 | 0.78 | 1.10 | 1.53 | ||||||||||||
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ConnectOne's management believes that the supplemental financial information, including non-GAAP measures provided below, is useful to investors. The non-GAAP measures should not be viewed as a substitute for financial results determined in accordance with GAAP, and are not necessarily comparable to non-GAAP financial measures presented by other companies. |
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CONNECTONE BANCORP, INC. |
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SUPPLEMENTAL GAAP AND NON-GAAP FINANCIAL MEASURES |
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As of |
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Jun. 30, |
Mar. 31, |
Dec. 31, |
Sep. 30, |
Jun. 30, |
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2023 |
2023 |
2022 |
2022 |
2022 |
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(dollars in thousands) |
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| Selected Financial Data | ||||||||||||||||||||
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Total assets |
$ | 9,723,963 | $ | 9,960,467 | $ | 9,644,948 | $ | 9,478,252 | $ | 8,841,506 | ||||||||||
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Loans receivable: |
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Commercial |
$ | 1,451,400 | $ | 1,392,565 | $ | 1,443,942 | $ | 1,392,037 | $ | 1,274,280 | ||||||||||
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Paycheck Protection Program ("PPP") loans |
10,845 | 11,300 | 11,374 | 11,458 | 18,004 | |||||||||||||||
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Commercial real estate |
3,237,559 | 3,245,990 | 3,170,760 | 3,087,354 | 2,727,120 | |||||||||||||||
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Multifamily |
2,604,230 | 2,600,251 | 2,641,886 | 2,624,726 | 2,442,603 | |||||||||||||||
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Commercial construction |
596,362 | 630,469 | 574,139 | 537,323 | 569,789 | |||||||||||||||
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Residential |
254,405 | 259,166 | 264,748 | 256,085 | 249,379 | |||||||||||||||
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Consumer |
1,416 | 1,435 | 2,312 | 1,030 | 1,248 | |||||||||||||||
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Gross loans |
8,156,217 | 8,141,176 | 8,109,161 | 7,910,013 | 7,282,423 | |||||||||||||||
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Unearned net origination fees |
(7,677 | ) | (9,057 | ) | (9,472 | ) | (9,563 | ) | (7,850 | ) | ||||||||||
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Loans receivable |
8,148,540 | 8,132,119 | 8,099,689 | 7,900,450 | 7,274,573 | |||||||||||||||
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Loans held-for-sale |
1,089 | 11,197 | 13,772 | 8,080 | 3,182 | |||||||||||||||
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Total loans |
$ | 8,149,629 | $ | 8,143,316 | $ | 8,113,461 | $ | 7,908,530 | $ | 7,277,755 | ||||||||||
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Investment and equity securities |
$ | 630,769 | $ | 647,026 | $ | 650,695 | $ | 639,192 | $ | 691,934 | ||||||||||
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Goodwill and other intangible assets |
214,941 | 215,312 | 215,684 | 216,093 | 216,502 | |||||||||||||||
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Deposits: |
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Noninterest-bearing demand |
$ | 1,356,293 | $ | 1,345,265 | $ | 1,501,614 | $ | 1,665,658 | $ | 1,712,875 | ||||||||||
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Time deposits |
2,621,148 | 2,706,662 | 2,394,190 | 1,921,235 | 1,285,409 | |||||||||||||||
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Other interest-bearing deposits |
3,560,856 | 3,701,249 | 3,460,818 | 3,723,617 | 3,619,315 | |||||||||||||||
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Total deposits |
$ | 7,538,297 | $ | 7,753,176 | $ | 7,356,622 | $ | 7,310,510 | $ | 6,617,599 | ||||||||||
|
Borrowings |
$ | 827,601 | $ | 852,611 | $ | 857,622 | $ | 829,953 | $ | 874,964 | ||||||||||
|
Subordinated debentures, net |
79,187 | 79,060 | 153,255 | 153,179 | 153,103 | |||||||||||||||
|
Total stockholders' equity |
1,199,397 | 1,190,970 | 1,178,751 | 1,148,295 | 1,143,147 | |||||||||||||||
|
Quarterly Average Balances |
||||||||||||||||||||
|
Total assets |
$ | 9,765,582 | $ | 9,700,530 | $ | 9,490,477 | $ | 9,030,589 | $ | 8,322,823 | ||||||||||
|
Loans receivable: |
||||||||||||||||||||
|
Commercial (including PPP loans) |
$ | 1,427,153 | $ | 1,442,180 | $ | 1,456,247 | $ | 1,342,868 | $ | 1,245,812 | ||||||||||
|
Commercial real estate (including multifamily) |
5,847,147 | 5,813,388 | 5,758,594 | 5,455,714 | 4,974,297 | |||||||||||||||
|
Commercial construction |
611,492 | 606,214 | 558,086 | 537,073 | 544,084 | |||||||||||||||
|
Residential |
256,924 | 261,560 | 261,969 | 251,338 | 247,208 | |||||||||||||||
|
Consumer |
6,733 | 3,894 | 4,630 | 2,361 | 5,029 | |||||||||||||||
|
Gross loans |
8,149,449 | 8,127,236 | 8,039,526 | 7,589,354 | 7,016,430 | |||||||||||||||
|
Unearned net origination fees |
(8,591 | ) | (9,664 | ) | (9,666 | ) | (9,178 | ) | (9,222 | ) | ||||||||||
|
Loans receivable |
8,140,858 | 8,117,572 | 8,029,860 | 7,580,176 | 7,007,208 | |||||||||||||||
|
Loans held-for-sale |
8,516 | 13,463 | 7,933 | 2,195 | 966 | |||||||||||||||
|
Total loans |
$ | 8,149,374 | $ | 8,131,035 | $ | 8,037,793 | $ | 7,582,371 | $ | 7,008,174 | ||||||||||
|
Investment and equity securities |
$ | 642,915 | $ | 649,744 | $ | 650,479 | $ | 687,291 | $ | 567,140 | ||||||||||
|
Goodwill and other intangible assets |
215,182 | 215,556 | 215,951 | 216,360 | 216,786 | |||||||||||||||
|
Deposits: |
||||||||||||||||||||
|
Noninterest-bearing demand |
$ | 1,347,268 | $ | 1,451,654 | $ | 1,610,044 | $ | 1,682,135 | $ | 1,607,465 | ||||||||||
|
Time deposits |
2,658,673 | 2,357,332 | 2,035,362 | 1,525,076 | 1,103,418 | |||||||||||||||
|
Other interest-bearing deposits |
3,640,939 | 3,565,904 | 3,558,881 | 3,686,520 | 3,717,531 | |||||||||||||||
|
Total deposits |
$ | 7,646,880 | $ | 7,374,890 | $ | 7,204,287 | $ | 6,893,731 | $ | 6,428,414 | ||||||||||
|
Borrowings |
$ | 756,303 | $ | 941,266 | $ | 913,960 | $ | 772,561 | $ | 548,675 | ||||||||||
|
Subordinated debentures, net |
79,104 | 103,637 | 153,205 | 153,129 | 153,053 | |||||||||||||||
|
Total stockholders' equity |
1,197,043 | 1,191,216 | 1,165,588 | 1,160,448 | 1,143,092 | |||||||||||||||
|
Three Months Ended |
||||||||||||||||||||
|
Jun. 30, |
Mar. 31, |
Dec. 31, |
Sep. 30, |
Jun. 30, |
||||||||||||||||
|
2023 |
2023 |
2022 |
2022 |
2022 |
||||||||||||||||
|
(dollars in thousands, except for per share data) |
||||||||||||||||||||
|
Net interest income |
$ | 63,843 | $ | 67,084 | $ | 78,009 | $ | 78,161 | $ | 75,591 | ||||||||||
|
Provision for credit losses |
3,000 | 1,000 | 3,300 | 10,000 | 3,000 | |||||||||||||||
|
Net interest income after provision for credit losses |
60,843 | 66,084 | 74,709 | 68,161 | 72,591 | |||||||||||||||
|
Noninterest income |
||||||||||||||||||||
|
Deposit, loan and other income |
1,545 | 1,403 | 1,894 | 1,969 | 1,866 | |||||||||||||||
|
Income on bank owned life insurance |
1,553 | 1,531 | 1,528 | 1,521 | 1,342 | |||||||||||||||
|
Net gains on sale of loans held-for-sale |
550 | 49 | 176 | 262 | 556 | |||||||||||||||
|
Net losses on equity securities |
(210 | ) | (191 | ) | (90 | ) | (430 | ) | (405 | ) | ||||||||||
|
Total noninterest income |
3,438 | 2,792 | 3,508 | 3,322 | 3,359 | |||||||||||||||
|
Noninterest expenses |
||||||||||||||||||||
|
Salaries and employee benefits |
21,726 | 22,236 | 21,676 | 20,882 | 19,519 | |||||||||||||||
|
Occupancy and equipment |
2,677 | 2,761 | 2,603 | 2,600 | 2,733 | |||||||||||||||
|
FDIC insurance |
1,715 | 950 | 830 | 720 | 725 | |||||||||||||||
|
Professional and consulting |
1,932 | 2,194 | 2,157 | 1,980 | 2,124 | |||||||||||||||
|
Marketing and advertising |
556 | 532 | 454 | 461 | 426 | |||||||||||||||
|
Information technology and communications |
3,644 | 3,061 | 2,694 | 2,747 | 2,801 | |||||||||||||||
|
Amortization of core deposit intangible |
371 | 372 | 409 | 409 | 434 | |||||||||||||||
|
Increase in value of acquisition price |
- | - | - | - | 833 | |||||||||||||||
|
Other expenses |
2,829 | 2,764 | 2,489 | 2,344 | 2,108 | |||||||||||||||
|
Total noninterest expenses |
35,450 | 34,870 | 33,312 | 32,143 | 31,703 | |||||||||||||||
|
Income before income tax expense |
28,831 | 34,006 | 44,905 | 39,340 | 44,247 | |||||||||||||||
|
Income tax expense |
7,437 | 9,077 | 12,348 | 10,425 | 11,889 | |||||||||||||||
|
Net income |
$ | 21,394 | $ | 24,929 | $ | 32,557 | $ | 28,915 | $ | 32,358 | ||||||||||
|
Preferred dividends |
1,509 | 1,509 | 1,510 | 1,509 | 1,509 | |||||||||||||||
|
Net income available to common stockholders |
$ | 19,885 | $ | 23,420 | $ | 31,047 | $ | 27,406 | $ | 30,849 | ||||||||||
|
Weighted average diluted common shares outstanding |
39,146,224 | 39,300,733 | 39,378,137 | 39,320,674 | 39,481,689 | |||||||||||||||
|
Diluted EPS |
$ | 0.51 | $ | 0.59 | $ | 0.79 | $ | 0.70 | $ | 0.78 | ||||||||||
|
Reconciliation of GAAP Earnings to Pre-tax and Pre-provision Net Revenue |
||||||||||||||||||||
|
Net income |
$ | 21,394 | $ | 24,929 | $ | 32,557 | $ | 28,915 | $ | 32,358 | ||||||||||
|
Income tax expense |
7,437 | 9,077 | 12,348 | 10,425 | 11,889 | |||||||||||||||
|
Provision for credit losses |
3,000 | 1,000 | 3,300 | 10,000 | 3,000 | |||||||||||||||
|
Pre-tax and pre-provision net revenue |
$ | 31,831 | $ | 35,006 | $ | 48,205 | $ | 49,340 | $ | 47,247 | ||||||||||
|
Return on Assets Measures |
||||||||||||||||||||
|
Average assets |
$ | 9,765,582 | $ | 9,700,530 | $ | 9,490,477 | $ | 9,030,589 | $ | 8,322,823 | ||||||||||
|
Return on avg. assets |
0.88 |
% |
1.04 |
% |
1.36 |
% |
1.27 |
% |
1.56 |
% |
||||||||||
|
Return on avg. assets (pre-tax and pre-provision) |
1.31 | 1.46 | 2.02 | 2.17 | 2.28 | |||||||||||||||
|
Three Months Ended |
||||||||||||||||||||
|
Jun. 30, |
Mar. 31, |
Dec. 31, |
Sep. 30, |
Jun. 30, |
||||||||||||||||
|
2023 |
2023 |
2022 |
2022 |
2022 |
||||||||||||||||
|
|
(dollars in thousands) |
|||||||||||||||||||
| Return on Equity Measures | ||||||||||||||||||||
|
Average stockholders' equity |
$ | 1,197,043 | $ | 1,191,216 | $ | 1,165,588 | $ | 1,160,448 | $ | 1,143,097 | ||||||||||
|
Less: average preferred stock |
(110,927 | ) | (110,927 | ) | (110,927 | ) | (110,927 | ) | (110,927 | ) | ||||||||||
|
Average common equity |
$ | 1,086,116 | $ | 1,080,289 | $ | 1,054,661 | $ | 1,049,521 | $ | 1,032,170 | ||||||||||
|
Less: average intangible assets |
(215,182 | ) | (215,556 | ) | (215,951 | ) | (216,360 | ) | (216,786 | ) | ||||||||||
|
Average tangible common equity |
$ | 870,934 | $ | 864,733 | $ | 838,710 | $ | 833,161 | $ | 815,384 | ||||||||||
|
Return on avg. common equity (GAAP) |
7.34 |
% |
8.79 |
% |
11.68 |
% |
10.36 |
% |
11.99 |
% |
||||||||||
|
Return on avg. tangible common equity ("TCE") (non-GAAP) (1) |
9.28 | 11.11 | 14.82 | 13.19 | 15.32 | |||||||||||||||
|
Return on avg. tangible common equity (pre-tax, pre-provision, pre-merger charges) |
14.78 | 16.54 | 22.94 | 23.63 | 23.39 | |||||||||||||||
|
Efficiency Measures |
||||||||||||||||||||
|
Total noninterest expenses |
$ | 35,450 | $ | 34,870 | $ | 33,312 | $ | 32,143 | $ | 31,703 | ||||||||||
|
Amortization of core deposit intangibles |
(371 | ) | (372 | ) | (409 | ) | (409 | ) | (434 | ) | ||||||||||
|
Operating noninterest expense |
$ | 35,079 | $ | 34,498 | $ | 32,903 | $ | 31,734 | $ | 31,269 | ||||||||||
|
Net interest income (tax equivalent basis) |
$ | 64,627 | $ | 67,828 | $ | 78,773 | $ | 78,850 | $ | 76,146 | ||||||||||
|
Noninterest income |
3,438 | 2,792 | 3,508 | 3,322 | 3,359 | |||||||||||||||
|
Net losses on equity securities |
210 | 191 | 90 | 430 | 405 | |||||||||||||||
|
Operating revenue |
$ | 68,275 | $ | 70,811 | $ | 82,371 | $ | 82,602 | $ | 79,910 | ||||||||||
|
Operating efficiency ratio (non-GAAP) (2) |
51.4 |
% |
48.7 |
% |
39.9 |
% |
38.4 |
% |
39.1 |
% |
||||||||||
|
Net Interest Margin |
||||||||||||||||||||
|
Average interest-earning assets |
$ | 9,228,079 | $ | 9,174,167 | $ | 8,972,063 | $ | 8,500,316 | $ | 7,807,445 | ||||||||||
|
Net interest income (tax equivalent basis) |
$ | 64,627 | $ | 67,828 | $ | 78,773 | $ | 78,850 | $ | 76,146 | ||||||||||
|
Impact of purchase accounting fair value marks |
(575 | ) | (839 | ) | (837 | ) | (885 | ) | (1,014 | ) | ||||||||||
|
Adjusted net interest income (tax equivalent basis) |
$ | 64,052 | $ | 66,989 | $ | 77,936 | $ | 77,965 | $ | 75,132 | ||||||||||
|
Net interest margin (GAAP) |
2.81 |
% |
3.00 |
% |
3.48 |
% |
3.68 |
% |
3.91 |
% |
||||||||||
|
Adjusted net interest margin (non-GAAP) (3) |
2.78 | 2.96 | 3.45 | 3.64 | 3.86 | |||||||||||||||
|
(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 |
||||||||||||||||||||
|
Jun. 30, |
Mar. 31, |
Dec. 31, |
Sep. 30, |
Jun. 30, |
||||||||||||||||
|
2023 |
2023 |
2022 |
2022 |
2022 |
||||||||||||||||
|
|
(dollars in thousands, except for per share data) |
|||||||||||||||||||
| Capital Ratios and Book Value per Share | ||||||||||||||||||||
|
Stockholders equity |
$ | 1,199,397 | $ | 1,190,970 | $ | 1,178,751 | $ | 1,148,295 | $ | 1,143,147 | ||||||||||
|
Less: preferred stock |
(110,927 | ) | (110,927 | ) | (110,927 | ) | (110,927 | ) | (110,927 | ) | ||||||||||
|
Common equity |
$ | 1,088,470 | $ | 1,080,043 | $ | 1,067,824 | $ | 1,037,368 | $ | 1,032,220 | ||||||||||
|
Less: intangible assets |
(214,941 | ) | (215,312 | ) | (215,684 | ) | (216,093 | ) | (216,502 | ) | ||||||||||
|
Tangible common equity |
$ | 873,529 | $ | 864,731 | $ | 852,140 | $ | 821,275 | $ | 815,718 | ||||||||||
|
Total assets |
$ | 9,723,963 | $ | 9,960,467 | $ | 9,644,948 | $ | 9,478,252 | $ | 8,841,506 | ||||||||||
|
Less: intangible assets |
(214,941 | ) | (215,312 | ) | (215,684 | ) | (216,093 | ) | (216,502 | ) | ||||||||||
|
Tangible assets |
$ | 9,509,022 | $ | 9,745,155 | $ | 9,429,264 | $ | 9,262,159 | $ | 8,625,004 | ||||||||||
|
Common shares outstanding |
39,094,630 | 39,179,051 | 39,243,123 | 39,243,123 | 39,243,123 | |||||||||||||||
|
Common equity ratio (GAAP) |
11.19 |
% |
10.84 |
% |
11.07 |
% |
10.94 |
% |
11.67 |
% |
||||||||||
|
Tangible common equity ratio (non-GAAP) (4) |
9.19 | 8.87 | 9.04 | 8.87 | 9.46 | |||||||||||||||
|
Regulatory capital ratios (Bancorp): |
||||||||||||||||||||
|
Leverage ratio |
10.62 |
% |
10.60 |
% |
10.68 |
% |
10.95 |
% |
11.63 |
% |
||||||||||
|
Common equity Tier 1 risk-based ratio |
10.55 | 10.55 | 10.30 | 10.20 | 10.63 | |||||||||||||||
|
Risk-based Tier 1 capital ratio |
11.90 | 11.92 | 11.66 | 11.58 | 12.11 | |||||||||||||||
|
Risk-based total capital ratio |
13.83 | 13.85 | 14.45 | 14.45 | 15.09 | |||||||||||||||
|
Regulatory capital ratios (Bank): |
||||||||||||||||||||
|
Leverage ratio |
10.95 |
% |
10.62 |
% |
10.64 |
% |
10.91 |
% |
11.60 |
% |
||||||||||
|
Common equity Tier 1 risk-based ratio |
12.26 | 11.92 | 11.60 | 11.53 | 12.08 | |||||||||||||||
|
Risk-based Tier 1 capital ratio |
12.26 | 11.92 | 11.60 | 11.53 | 12.08 | |||||||||||||||
|
Risk-based total capital ratio |
13.33 | 13.27 | 13.02 | 13.00 | 13.55 | |||||||||||||||
|
Book value per share (GAAP) |
$ | 27.84 | $ | 27.57 | $ | 27.21 | $ | 26.43 | $ | 26.30 | ||||||||||
|
Tangible book value per share (non-GAAP) (5) |
22.34 | 22.07 | 21.71 | 20.93 | 20.79 | |||||||||||||||
|
Net Loan (Recoveries) Charge-Off Detail |
||||||||||||||||||||
|
Net loan charge-offs (recoveries): |
||||||||||||||||||||
|
Charge-offs |
$ | 1,119 | $ | 4,484 | $ | 4,456 | $ | 413 | $ | 302 | ||||||||||
|
Recoveries |
(77 | ) | (1 | ) | - | (53 | ) | (32 | ) | |||||||||||
|
Net loan charge-offs (recoveries) |
$ | 1,042 | $ | 4,483 | $ | 4,456 | $ | 360 | $ | 270 | ||||||||||
|
Net loan charge-offs (recoveries) as a % of average loans receivable (annualized) |
0.05 |
% |
0.22 |
% |
0.23 |
% |
0.02 |
% |
0.02 |
% |
||||||||||
|
Asset Quality |
||||||||||||||||||||
|
Nonaccrual loans |
$ | 51,496 | $ | 47,667 | $ | 44,454 | $ | 57,477 | $ | 60,756 | ||||||||||
|
OREO |
- | - | 264 | 264 | 316 | |||||||||||||||
|
Nonperforming assets |
$ | 51,496 | $ | 47,667 | $ | 44,718 | $ | 57,741 | $ | 61,072 | ||||||||||
|
Allowance for credit losses - loans ("ACL") |
89,205 | 87,002 | 90,513 | 91,717 | 82,739 | |||||||||||||||
|
Loans receivable |
$ | 8,148,540 | $ | 8,132,119 | $ | 8,099,689 | $ | 7,900,450 | $ | 7,274,573 | ||||||||||
|
Less: PPP loans |
10,845 | 11,300 | 11,374 | 11,458 | 18,004 | |||||||||||||||
|
Loans receivable (excluding PPP loans) |
$ | 8,137,695 | $ | 8,120,819 | $ | 8,088,315 | $ | 7,888,992 | $ | 7,256,569 | ||||||||||
|
Nonaccrual loans as a % of loans receivable |
0.63 |
% |
0.59 |
% |
0.55 |
% |
0.73 |
% |
0.84 |
% |
||||||||||
|
Nonperforming assets as a % of total assets |
0.53 | 0.48 | 0.46 | 0.61 | 0.69 | |||||||||||||||
|
ACL as a % of loans receivable |
1.09 | 1.07 | 1.12 | 1.16 | 1.14 | |||||||||||||||
|
ACL as a % of nonaccrual loans |
173.2 | 182.5 | 203.6 | 159.6 | 136.2 | |||||||||||||||
|
(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 |
||||||||||||||||||||||||||||||
|
June 30, 2023 |
March 31, 2023 |
June 30, 2022 |
||||||||||||||||||||||||||||
|
Average |
Average |
Average |
||||||||||||||||||||||||||||
|
|
Balance |
Interest |
Rate (7) |
Balance |
Interest |
Rate (7) |
Balance |
Interest |
Rate (7) |
|||||||||||||||||||||
| Interest-earning assets: | ||||||||||||||||||||||||||||||
|
Investment securities (1) (2) |
$ | 726,315 | $ | 5,607 | 3.10 |
% |
$ | 732,929 | $ | 5,620 | 3.11 |
% |
$ | 610,465 | $ | 3,710 | 2.44 |
% |
||||||||||||
|
Loans receivable and loans held-for-sale (2) (3) (4) |
8,149,374 | 111,501 | 5.49 | 8,131,035 | 107,348 | 5.35 | 7,008,174 | 81,597 | 4.67 | |||||||||||||||||||||
|
Federal funds sold and interest- bearing deposits with banks |
309,458 | 4,056 | 5.26 | 260,297 | 2,975 | 4.64 | 157,201 | 313 | 0.80 | |||||||||||||||||||||
|
Restricted investment in bank stock |
42,932 | 945 | 8.83 | 49,906 | 898 | 7.30 | 31,605 | 291 | 3.69 | |||||||||||||||||||||
|
Total interest-earning assets |
$ | 9,228,079 | 122,109 | 5.31 | $ | 9,174,167 | 116,841 | 5.17 | 7,807,445 | 85,911 | 4.41 | |||||||||||||||||||
|
Allowance for loan losses |
(87,473 | ) | (90,182 | ) | (81,012 | ) | ||||||||||||||||||||||||
|
Noninterest-earning assets |
624,976 | 616,545 | 596,390 | |||||||||||||||||||||||||||
|
Total assets |
$ | 9,765,582 | $ | 9,700,530 | $ | 8,322,823 | ||||||||||||||||||||||||
|
Interest-bearing liabilities: |
||||||||||||||||||||||||||||||
|
Time deposits |
2,658,673 | 23,778 | 3.59 | 2,357,332 | 17,267 | 2.97 | $ | 1,103,418 | 2,179 | 0.79 | ||||||||||||||||||||
|
Other interest-bearing deposits |
3,640,939 | 26,936 | 2.97 | 3,565,904 | 22,820 | 2.60 | 3,717,531 | 3,530 | 0.38 | |||||||||||||||||||||
|
Total interest-bearing deposits |
6,299,612 | 50,714 | 3.23 | 5,923,236 | 40,087 | 2.74 | 4,820,949 | 5,709 | 0.47 | |||||||||||||||||||||
|
Borrowings |
756,303 | 5,438 | 2.88 | 941,266 | 7,322 | 3.15 | 548,675 | 1,849 | 1.35 | |||||||||||||||||||||
|
Subordinated debentures, net |
79,104 | 1,306 | 6.62 | 103,637 | 1,579 | 6.18 | 153,053 | 2,179 | 5.71 | |||||||||||||||||||||
|
Finance lease |
1,658 | 24 | 5.81 | 1,714 | 25 | 5.92 | 1,865 | 28 | 6.02 | |||||||||||||||||||||
|
Total interest-bearing liabilities |
7,136,677 | 57,482 | 3.23 | 6,969,853 | 49,013 | 2.85 | 5,524,542 | 9,765 | 0.71 | |||||||||||||||||||||
|
Noninterest-bearing demand deposits |
1,347,268 | 1,451,654 | 1,607,465 | |||||||||||||||||||||||||||
|
Other liabilities |
84,594 | 87,807 | 47,719 | |||||||||||||||||||||||||||
|
Total noninterest-bearing liabilities |
1,431,862 | 1,539,461 | 1,655,184 | |||||||||||||||||||||||||||
|
Stockholders' equity |
1,197,043 | 1,191,216 | 1,143,097 | |||||||||||||||||||||||||||
|
Total liabilities and stockholders' equity |
$ | 9,765,582 | $ | 9,700,530 | $ | 8,322,823 | ||||||||||||||||||||||||
|
Net interest income (tax equivalent basis) |
64,627 | 67,828 | 76,146 | |||||||||||||||||||||||||||
|
Net interest spread (5) |
2.08 |
% |
2.31 |
% |
3.70 |
% |
||||||||||||||||||||||||
|
Net interest margin (6) |
2.81 |
% |
3.00 |
% |
3.91 |
% |
||||||||||||||||||||||||
|
Tax equivalent adjustment |
(784 | ) | (744 | ) | (555 | ) | ||||||||||||||||||||||||
|
Net interest income |
$ | 63,843 | $ | 67,084 | $ | 75,591 | ||||||||||||||||||||||||
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(1) Average balances are calculated on amortized cost. |
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(2) Interest income is presented on a tax equivalent basis using 21% federal tax rate. |
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(3) Includes loan fee income. |
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(4) Loans include nonaccrual loans. |
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(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. |
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(6) Represents net interest income on a tax equivalent basis divided by average total interest-earning assets. |
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(7) Rates are annualized. |