ENGLEWOOD CLIFFS, N.J., Oct. 24, 2024 (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 $15.7 million for the third quarter of 2024 compared with $17.5 million for the second quarter of 2024 and $19.9 million for the third quarter of 2023. Included in net income available to common stockholders’ was merger and restructuring pre-tax expenses of $0.7 million for the third quarter of 2024, while there were no such charges during the second quarter of 2024 and the third quarter of 2023. Diluted earnings per share were $0.41 for the third quarter of 2024 compared with $0.46 for the second quarter of 2024 and $0.51 for the third quarter of 2023. Return on average assets was 0.70%, 0.79% and 0.88% for the three months ended September 30, 2024, June 30, 2024 and September 30, 2023, respectively. Return on average tangible common equity was 6.93%, 7.98% and 9.11% for the three months ended September 30, 2024, June 30, 2024 and September 30, 2023, respectively.
Operating net income available to common stockholders, which excludes non-operating items, was $16.1 million for the third quarter of 2024, $17.9 million for the second quarter of 2024 and $20.4 million for the third quarter of 2023. Operating diluted earnings per share were $0.42 for the third quarter of 2024, $0.47 for the second quarter of 2024 and $0.52 for the third quarter of 2023. Operating return on average assets was 0.72%, 0.80% and 0.90% for the three months ended September 30, 2024, June 30, 2024 and September 30, 2023, respectively. Operating return on average tangible common equity was 7.03%, 8.05% and 9.21% for the three months ended September 30, 2024, June 30, 2024 and September 30, 2023, respectively. See supplemental tables for a complete reconciliation of GAAP earnings to operating earnings, and other non-GAAP measures.
The decrease in net income available to common stockholders and diluted earnings per share from the second quarter of 2024 was primarily due to a $1.3 million increase in the provision for credit losses, a $1.0 million increase in noninterest expenses, and a $0.6 million decrease in net interest income, partially offset by a $0.7 million decrease in income tax expenses and a $0.3 million increase in noninterest income. The decrease in net income available to common stockholders from the third quarter of 2023 was primarily due to a $2.9 million increase in noninterest expenses, a $2.3 million increase in the provision for credit losses, and a $1.5 million decrease in net interest income, partially offset by a $1.2 million increase in noninterest income and a $1.2 million decrease in income tax expense. The increases in noninterest expenses when compared to the prior sequential quarter and the prior year quarter included the impact of the aforementioned $0.7 million of merger and restructuring expense that occurred during the third quarter of 2024.
“In September, we announced a planned merger with The First of Long Island Corporation, a transaction that we believe will create a truly premier New York-metro community bank,” commented Frank Sorrentino, ConnectOne’s Chairman and Chief Executive Officer. “Our integration planning is off to a good start, the initial regulatory process is underway, and we’re excited about creating a significantly enhanced platform for continued growth across all markets and communities we serve. Further, the economic environment and interest rate outlook confirms our belief that this combination will deliver meaningful benefits to our communities, clients and shareholders. We look forward to updating you on our progress in the months and quarters ahead.”
Mr. Sorrentino added, “Meanwhile, we remain focused and committed to our client-first culture and relationship banking model. During the first nine months of the year, we have actively reduced non-relationship loans from our balance sheet in an effort to improve our loan-to-deposit ratio, diversify our loan mix, and capitalize on the improving interest rate environment.”
“The net interest margin, for the third quarter, on a core basis was flat; however, as a result of the Fed’s 50 basis-point cut in late September, we ended the quarter with a so-called spot margin upwards of 10 basis points wider. And with our liability-sensitive balance sheet, we are positioned to drive increased profitability through the fourth quarter, into 2025 and post-merger completion.”
Dividend Declarations
The Company announced that its Board of Directors declared a cash dividend on both its common stock and its outstanding preferred stock. A cash dividend on common stock of $0.18 per share will be paid on December 2, 2024, to common stockholders of record on November 15, 2024. A dividend of $0.328125 per depositary share, representing a 1/40th interest in a share of the Company’s 5.25% Fixed Rate Reset Non-Cumulative Perpetual Preferred Stock, Series A, will also be paid on December 2, 2024 to holders of record on November 15, 2024.
Operating Results
Fully taxable equivalent net interest income for the third quarter of 2024 was $61.7 million, a decrease of $0.5 million, or 0.9%, from the second quarter of 2024, due to a five basis-point contraction of the net interest margin to 2.67% from 2.72%. During the third quarter of 2024, average loans decreased $89.4 million, or 1.1% when compared to the second quarter of 2024. The contraction of the net interest margin was primarily due to an increase in average cash balances during the third quarter of 2024, as well as a decrease in loan prepayment fees and nonaccrual loan interest recapture. The net interest margin is expected to increase by 10 basis points or more in the fourth quarter of 2024 reflecting the Fed’s actual and expected rate cuts along with deployment of excess cash-on-hand.
Fully taxable equivalent net interest income for the third quarter of 2024 decreased by $1.5 million, or 2.4%, from the third quarter of 2023. The decrease from the third quarter of 2023 resulted primarily from a nine basis-point contraction in the net interest margin to 2.67% from 2.76%. During the third quarter of 2024, average loans decreased by $45.9 million, or 0.6% when compared to the third quarter of 2023. The contraction of the net interest margin for the third quarter of 2024 when compared to the third quarter of 2023 was primarily attributable to a 40 basis-point increase in the average cost of deposits, including noninterest-bearing deposits, partially offset by a 24 basis-point increase in the loan portfolio yield.
Noninterest income was $4.7 million in the third quarter of 2024, $4.4 million in the second quarter of 2024 and $3.6 million in the third quarter of 2023. The $0.3 million increase in noninterest income for the third quarter of 2024 when compared to the second quarter of 2024 was due to a $0.6 million increase in net gains on equity securities, a $0.4 million increase in BOLI death benefits and a $0.2 million increase in other deposit, loan and other income, partially offset a $0.9 million decrease in net gains on sale of loans held-for-sale. The $1.2 million increase in noninterest income for the third quarter of 2024 when compared to the third quarter of 2023 was due to a $0.7 million increase in net gains on equity securities, a $0.4 million increase in BOLI death benefits received, a $0.2 million increase in BOLI income, a $0.1 million increase in BoeFly income, and a $0.1 million increase in other deposit, loan and other income, partially offset by a decrease in net gains on sale of loans held-for-sale of $0.3 million.
Noninterest expenses were $38.6 million for the third quarter of 2024, $37.6 million for the second quarter of 2024 and $35.8 million for the third quarter of 2023. The $1.0 million increase in noninterest expenses for the third quarter of 2024 when compared to the second quarter of 2024 was primarily due to a $0.7 million increase in merger and restructuring expenses, a $0.3 million increase in information and technology communications, a $0.2 million increase in salaries and employee benefits and a $0.2 million increase in professional and consulting fees, partially offset by decreases in other expenses of $0.4 million. The $2.9 million increase in noninterest expenses for the third quarter of 2024 when compared to the third quarter of 2023 was primarily due to a $1.0 million increase in information technology and communications, a $0.7 million increase in merger and restructuring expenses, a $0.7 million increase in salaries and employee benefits, a $0.3 million increase in professional and consulting, a $0.2 million increase in occupancy and equipment and a $0.1 million increase in marketing and advertising, partially offset by a decrease in other expenses of $0.1 million. The increases in information technology and communications when compared to the second quarter of 2024 and the third quarter of 2023 are attributable to additional investments in technology, equipment, and software. The increase in salaries and employee benefits when compared to the second quarter of 2024 was primarily attributable to increases in incentive-based compensation accruals, partially offset by decreases in payroll tax expenses and other employee benefit expenses. The increase in salaries and employee benefits when compared to the third quarter of 2023 was primarily attributable to increases in incentive-based compensation accruals, and an increase in other employee benefit expenses, partially offset by decreases in stock-compensation expenses.
Income tax expense was $6.0 million for the third quarter of 2024, $6.7 million for the second quarter of 2024 and $7.2 million for the third quarter of 2023. The effective tax rates for the second quarter of 2024, first quarter of 2024 and second quarter of 2023 were 26.0%, 26.0% and 25.2%, respectively.
Asset Quality
The provision for credit losses was $3.8 million for the third quarter of 2024, $2.5 million for the second quarter of 2024 and $1.5 million for the third quarter of 2023. The increase in the current quarter’s provision for credit losses from both the second quarter of 2024 and the third quarter of 2023 was primarily due to increases in specific reserves, partially offset by decreases in general reserves.
Nonperforming assets, which includes nonaccrual loans and other real estate owned (the Bank had no other real estate owned during the periods reported), was $51.3 million as of September 30, 2024, $52.5 million as of December 31, 2023 and $56.1 million as of September 30, 2023. Nonperforming assets as a percentage of total assets was 0.53% as of September 30, 2024, 0.53% as of December 31, 2023 and 0.58% as of September 30, 2023. The ratio of nonaccrual loans to loans receivable was 0.63%, 0.63% and 0.69%, as of September 30, 2024, December 31, 2023 and September 30, 2023, respectively. The annualized net loan charge-offs ratio was 0.17% for the third quarter of 2024, 0.43% for the fourth quarter of 2023 and 0.12% for the third quarter of 2023. The allowance for credit losses represented 1.02%, 0.98%, and 1.08% of loans receivable as of September 30, 2024, December 31, 2023, and September 30, 2023, respectively. The allowance for credit losses as a percentage of nonaccrual loans was 160.8% as of September 30, 2024, 156.1% as of December 31, 2023 and 157.4% as of September 30, 2023. Criticized and classified loans as a percentage of total loans was 2.23% as of September 30, 2024, up from 1.35% as of December 31, 2023 and up from 1.44% as of September 30, 2023. The increase is primarily due to a loan modification of one CRE relationship that was moved to special mention. Loans delinquent 30 to 89 days was 0.16% of loans as of September 30, 2024, down from 0.30% as of December 31, 2023 and up from 0.04% as of September 30, 2023.
Selected Balance Sheet Items
The Company’s total assets were $9.639 billion as of September 30, 2024, compared to $9.856 billion as of December 31, 2023. Loans receivable were $8.112 billion as of September 30, 2024 and $8.345 billion as of December 31, 2023. Total deposits were $7.524 billion as of September 30, 2024 and $7.536 billion as of December 31, 2023.
The Company’s total stockholders’ equity was $1.239 billion as of September 30, 2024 and $1.217 billion as of December 31, 2023. The increase in total stockholders’ equity was primarily attributable to an increase in retained earnings of $28.5 million, partially offset by an increase in accumulated other comprehensive losses of approximately $1.6 million and increases in treasury stock of approximately $5.8 million. As of September 30, 2024, the Company’s tangible common equity ratio and tangible book value per share were 9.71% and $23.85, respectively, compared to 9.25% and $23.14, respectively, as of December 31, 2023. Total goodwill and other intangible assets were $213.3 million as of September 30, 2024, and $214.2 million as of December 31, 2023.
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 2024 Results Conference Call
Management will also host a conference call and audio webcast at 10:00 a.m. ET on October 24, 2024 to review the Company's financial performance and operating results. The conference call dial-in number is 1 (646) 307-1963, access code 5504182. 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 24, 2024 and ending on Thursday, October 31, 2024 by dialing 1 (609) 800-9909, access code 5504182. 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 health emergencies and natural disasters 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
MikeWorldWide
732.299.7890: sweeks@mww.com
| CONNECTONE BANCORP, INC. AND SUBSIDIARIES | ||||||||||||
| CONSOLIDATED CONDENSED STATEMENTS OF FINANCIAL CONDITION | ||||||||||||
| (in thousands) | ||||||||||||
| September 30, | December 31, | September 30, | ||||||||||
| 2024 | 2023 | 2023 | ||||||||||
| (unaudited) | (unaudited) | |||||||||||
| ASSETS | ||||||||||||
| Cash and due from banks | $ | 61,093 | $ | 61,421 | $ | 56,170 | ||||||
| Interest-bearing deposits with banks | 186,155 | 181,293 | 197,128 | |||||||||
| Cash and cash equivalents | 247,248 | 242,714 | 253,298 | |||||||||
| Investment securities | 646,713 | 617,162 | 581,867 | |||||||||
| Equity securities | 20,399 | 18,564 | 17,677 | |||||||||
| Loans receivable | 8,111,976 | 8,345,145 | 8,181,109 | |||||||||
| Less: Allowance for credit losses - loans | 82,494 | 81,974 | 88,230 | |||||||||
| Net loans receivable | 8,029,482 | 8,263,171 | 8,092,879 | |||||||||
| Investment in restricted stock, at cost | 42,772 | 51,457 | 49,387 | |||||||||
| Bank premises and equipment, net | 29,068 | 30,779 | 28,432 | |||||||||
| Accrued interest receivable | 46,951 | 49,108 | 46,795 | |||||||||
| Bank owned life insurance | 242,016 | 237,644 | 236,009 | |||||||||
| Right of use operating lease assets | 14,211 | 12,007 | 11,229 | |||||||||
| Goodwill | 208,372 | 208,372 | 208,372 | |||||||||
| Core deposit intangibles | 4,935 | 5,874 | 6,222 | |||||||||
| Other assets | 107,436 | 118,751 | 146,718 | |||||||||
| Total assets | $ | 9,639,603 | $ | 9,855,603 | $ | 9,678,885 | ||||||
| LIABILITIES | ||||||||||||
| Deposits: | ||||||||||||
| Noninterest-bearing | $ | 1,262,568 | $ | 1,259,364 | $ | 1,224,125 | ||||||
| Interest-bearing | 6,261,537 | 6,276,838 | 6,214,370 | |||||||||
| Total deposits | 7,524,105 | 7,536,202 | 7,438,495 | |||||||||
| Borrowings | 742,133 | 933,579 | 887,590 | |||||||||
| Subordinated debentures, net | 79,818 | 79,439 | 79,313 | |||||||||
| Operating lease liabilities | 15,252 | 13,171 | 12,424 | |||||||||
| Other liabilities | 38,799 | 76,592 | 72,909 | |||||||||
| Total liabilities | 8,400,107 | 8,638,983 | 8,490,731 | |||||||||
| 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 | 34,995 | 33,182 | 32,027 | |||||||||
| Retained earnings | 619,497 | 590,970 | 579,776 | |||||||||
| Treasury stock | (76,116 | ) | (70,296 | ) | (68,108 | ) | ||||||
| Accumulated other comprehensive loss | (36,753 | ) | (35,109 | ) | (53,414 | ) | ||||||
| Total stockholders' equity | 1,239,496 | 1,216,620 | 1,188,154 | |||||||||
| Total liabilities and stockholders' equity | $ | 9,639,603 | $ | 9,855,603 | $ | 9,678,885 | ||||||
| CONNECTONE BANCORP, INC. AND SUBSIDIARIES | ||||||||||||||
| CONSOLIDATED STATEMENTS OF INCOME | ||||||||||||||
| (dollars in thousands, except for per share data) | ||||||||||||||
| Three Months Ended | Nine Months Ended | |||||||||||||
| 09/30/24 | 09/30/23 | 09/30/24 | 09/30/23 | |||||||||||
| Interest income | ||||||||||||||
| Interest and fees on loans | $ | 119,280 | $ | 115,405 | $ | 359,513 | $ | 333,356 | ||||||
| Interest and dividends on investment securities: | ||||||||||||||
| Taxable | 4,740 | 4,128 | 13,757 | 12,386 | ||||||||||
| Tax-exempt | 1,119 | 1,136 | 3,394 | 3,475 | ||||||||||
| Dividends | 1,048 | 907 | 3,390 | 2,750 | ||||||||||
| Interest on federal funds sold and other short-term investments | 4,055 | 2,110 | 9,802 | 9,141 | ||||||||||
| Total interest income | 130,242 | 123,686 | 389,856 | 361,108 | ||||||||||
| Interest expense | ||||||||||||||
| Deposits | 63,785 | 56,043 | 186,278 | 146,844 | ||||||||||
| Borrowings | 5,570 | 5,286 | 20,952 | 20,980 | ||||||||||
| Total interest expense | 69,355 | 61,329 | 207,230 | 167,824 | ||||||||||
| Net interest income | 60,887 | 62,357 | 182,626 | 193,284 | ||||||||||
| Provision for credit losses | 3,800 | 1,500 | 10,300 | 5,500 | ||||||||||
| Net interest income after provision for credit losses | 57,087 | 60,857 | 172,326 | 187,784 | ||||||||||
| Noninterest income | ||||||||||||||
| Deposit, loan and other income | 1,817 | 1,605 | 5,063 | 4,553 | ||||||||||
| Income on bank owned life insurance | 2,145 | 1,597 | 5,486 | 4,681 | ||||||||||
| Net gains on sale of loans held-for-sale | 343 | 633 | 2,126 | 1,232 | ||||||||||
| Net losses (gains) on equity securities | 432 | (273 | ) | 309 | (674 | ) | ||||||||
| Total noninterest income | 4,737 | 3,562 | 12,984 | 9,792 | ||||||||||
| Noninterest expenses | ||||||||||||||
| Salaries and employee benefits | 22,957 | 22,251 | 67,809 | 66,213 | ||||||||||
| Occupancy and equipment | 2,889 | 2,738 | 8,797 | 8,176 | ||||||||||
| FDIC insurance | 1,800 | 1,800 | 5,400 | 4,465 | ||||||||||
| Professional and consulting | 2,147 | 1,834 | 5,998 | 5,960 | ||||||||||
| Marketing and advertising | 635 | 554 | 1,925 | 1,642 | ||||||||||
| Information technology and communications | 4,464 | 3,487 | 13,051 | 10,192 | ||||||||||
| Merger and restructuring | 742 | - | 742 | - | ||||||||||
| Amortization of core deposit intangibles | 297 | 347 | 939 | 1,090 | ||||||||||
| Other expenses | 2,710 | 2,773 | 8,639 | 8,366 | ||||||||||
| Total noninterest expenses | 38,641 | 35,784 | 113,300 | 106,104 | ||||||||||
| Income before income tax expense | 23,183 | 28,635 | 72,010 | 91,472 | ||||||||||
| Income tax expense | 6,022 | 7,228 | 18,588 | 23,742 | ||||||||||
| Net income | 17,161 | 21,407 | 53,422 | 67,730 | ||||||||||
| Preferred dividends | 1,509 | 1,509 | 4,527 | 4,527 | ||||||||||
| Net income available to common stockholders | $ | 15,652 | $ | 19,898 | $ | 48,895 | $ | 63,203 | ||||||
| Earnings per common share: | ||||||||||||||
| Basic | $ | 0.41 | $ | 0.51 | $ | 1.27 | $ | 1.62 | ||||||
| Diluted | 0.41 | 0.51 | 1.27 | 1.61 | ||||||||||
| 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 | ||||||||||||||||||||
| Sept. 30, | Jun. 30, | Mar. 31, | Dec. 31, | Sep. 30, | ||||||||||||||||
| 2024 | 2024 | 2024 | 2023 | 2023 | ||||||||||||||||
| Selected Financial Data | (dollars in thousands) | |||||||||||||||||||
| Total assets | $ | 9,639,603 | $ | 9,723,731 | $ | 9,853,964 | $ | 9,855,603 | $ | 9,678,885 | ||||||||||
| Loans receivable: | ||||||||||||||||||||
| Commercial | $ | 1,505,743 | $ | 1,491,079 | $ | 1,561,063 | $ | 1,564,768 | $ | 1,464,479 | ||||||||||
| Commercial real estate | 3,261,160 | 3,274,941 | 3,333,488 | 3,342,603 | 3,288,704 | |||||||||||||||
| Multifamily | 2,482,258 | 2,499,581 | 2,507,893 | 2,566,904 | 2,559,927 | |||||||||||||||
| Commercial construction | 616,087 | 639,168 | 646,593 | 620,496 | 622,748 | |||||||||||||||
| Residential | 250,249 | 256,786 | 254,214 | 256,041 | 251,416 | |||||||||||||||
| Consumer | 835 | 945 | 850 | 1,029 | 936 | |||||||||||||||
| Gross loans | 8,116,332 | 8,162,500 | 8,304,101 | 8,351,841 | 8,188,210 | |||||||||||||||
| Net deferred loan fees | (4,356 | ) | (4,597 | ) | (6,144 | ) | (6,696 | ) | (7,101 | ) | ||||||||||
| Loans receivable | 8,111,976 | 8,157,903 | 8,297,957 | 8,345,145 | 8,181,109 | |||||||||||||||
| Loans held-for-sale | - | 435 | - | - | - | |||||||||||||||
| Total loans | $ | 8,111,976 | $ | 8,158,338 | $ | 8,297,957 | $ | 8,345,145 | $ | 8,181,109 | ||||||||||
| Investment and equity securities | $ | 667,112 | $ | 640,322 | $ | 638,854 | $ | 635,726 | $ | 599,544 | ||||||||||
| Goodwill and other intangible assets | 213,307 | 213,604 | 213,925 | 214,246 | 214,594 | |||||||||||||||
| Deposits: | ||||||||||||||||||||
| Noninterest-bearing demand | $ | 1,262,568 | $ | 1,268,882 | $ | 1,290,523 | $ | 1,259,364 | $ | 1,224,125 | ||||||||||
| Time deposits | 2,614,187 | 2,593,165 | 2,623,391 | 2,531,371 | 2,522,210 | |||||||||||||||
| Other interest-bearing deposits | 3,647,350 | 3,713,967 | 3,674,740 | 3,745,467 | 3,692,160 | |||||||||||||||
| Total deposits | $ | 7,524,105 | $ | 7,576,014 | $ | 7,588,654 | $ | 7,536,202 | $ | 7,438,495 | ||||||||||
| Borrowings | $ | 742,133 | $ | 756,144 | $ | 877,568 | $ | 933,579 | $ | 887,590 | ||||||||||
| Subordinated debentures (net of debt issuance costs) | 79,818 | 79,692 | 79,566 | 79,439 | 79,313 | |||||||||||||||
| Total stockholders' equity | 1,239,496 | 1,224,227 | 1,216,609 | 1,216,620 | 1,188,154 | |||||||||||||||
| Quarterly Average Balances | ||||||||||||||||||||
| Total assets | $ | 9,742,853 | $ | 9,745,853 | $ | 9,860,753 | $ | 9,690,746 | $ | 9,625,625 | ||||||||||
| Loans receivable: | ||||||||||||||||||||
| Commercial | $ | 1,485,777 | $ | 1,517,446 | $ | 1,552,360 | $ | 1,510,634 | $ | 1,471,006 | ||||||||||
| Commercial real estate (including multifamily) | 5,752,467 | 5,789,498 | 5,890,853 | 5,874,854 | 5,821,794 | |||||||||||||||
| Commercial construction | 628,740 | 652,227 | 637,993 | 630,468 | 625,640 | |||||||||||||||
| Residential | 252,975 | 254,284 | 252,965 | 253,200 | 253,114 | |||||||||||||||
| Consumer | 7,887 | 5,155 | 5,091 | 6,006 | 4,972 | |||||||||||||||
| Gross loans | 8,127,846 | 8,218,610 | 8,339,262 | 8,275,162 | 8,176,526 | |||||||||||||||
| Net deferred loan fees | (4,513 | ) | (5,954 | ) | (6,533 | ) | (6,894 | ) | (7,387 | ) | ||||||||||
| Loans receivable | 8,123,333 | 8,212,656 | 8,332,729 | 8,268,268 | 8,169,139 | |||||||||||||||
| Loans held-for-sale | 83 | 169 | 99 | 31 | 171 | |||||||||||||||
| Total loans | $ | 8,123,416 | $ | 8,212,825 | $ | 8,332,828 | $ | 8,268,299 | $ | 8,169,310 | ||||||||||
| Investment and equity securities | $ | 650,897 | $ | 637,551 | $ | 633,270 | $ | 602,287 | $ | 628,429 | ||||||||||
| Goodwill and other intangible assets | 213,502 | 213,813 | 214,133 | 214,472 | 214,822 | |||||||||||||||
| Deposits: | ||||||||||||||||||||
| Noninterest-bearing demand | $ | 1,259,912 | $ | 1,256,251 | $ | 1,254,201 | $ | 1,248,132 | $ | 1,275,325 | ||||||||||
| Time deposits | 2,625,329 | 2,587,706 | 2,567,767 | 2,495,091 | 2,606,122 | |||||||||||||||
| Other interest-bearing deposits | 3,747,427 | 3,721,167 | 3,696,374 | 3,747,093 | 3,723,561 | |||||||||||||||
| Total deposits | $ | 7,632,668 | $ | 7,565,124 | $ | 7,518,342 | $ | 7,490,316 | $ | 7,605,008 | ||||||||||
| Borrowings | $ | 717,586 | $ | 787,256 | $ | 947,003 | $ | 823,123 | $ | 651,112 | ||||||||||
| Subordinated debentures (net of debt issuance costs) | 79,735 | 79,609 | 79,483 | 79,356 | 79,230 | |||||||||||||||
| Total stockholders' equity | 1,234,724 | 1,220,621 | 1,220,818 | 1,198,389 | 1,202,647 | |||||||||||||||
| Three Months Ended | ||||||||||||||||||||
| Sept. 30, | Jun. 30, | Mar. 31, | Dec. 31, | Sep. 30, | ||||||||||||||||
| 2024 | 2024 | 2024 | 2023 | 2023 | ||||||||||||||||
| (dollars in thousands, except for per share data) | ||||||||||||||||||||
| Net interest income | $ | 60,887 | $ | 61,439 | $ | 60,300 | $ | 61,822 | $ | 62,357 | ||||||||||
| Provision for credit losses | 3,800 | 2,500 | 4,000 | 2,700 | 1,500 | |||||||||||||||
| Net interest income after provision for credit losses | 57,087 | 58,939 | 56,300 | 59,122 | 60,857 | |||||||||||||||
| Noninterest income | ||||||||||||||||||||
| Deposit, loan and other income | 1,817 | 1,654 | 1,592 | 1,545 | 1,605 | |||||||||||||||
| Income on bank owned life insurance | 2,145 | 1,677 | 1,664 | 1,635 | 1,597 | |||||||||||||||
| Net gains on sale of loans held-for-sale | 343 | 1,277 | 506 | 472 | 633 | |||||||||||||||
| Net gains (losses) on equity securities | 432 | (209 | ) | 86 | 557 | (273 | ) | |||||||||||||
| Total noninterest income | 4,737 | 4,399 | 3,848 | 4,209 | 3,562 | |||||||||||||||
| Noninterest expenses | ||||||||||||||||||||
| Salaries and employee benefits | 22,957 | 22,721 | 22,131 | 22,010 | 22,251 | |||||||||||||||
| Occupancy and equipment | 2,889 | 2,899 | 3,009 | 2,708 | 2,738 | |||||||||||||||
| FDIC insurance | 1,800 | 1,800 | 1,800 | 3,900 | 1,800 | |||||||||||||||
| Professional and consulting | 2,147 | 1,923 | 1,928 | 1,587 | 1,834 | |||||||||||||||
| Marketing and advertising | 635 | 613 | 677 | 323 | 554 | |||||||||||||||
| Information technology and communications | 4,464 | 4,198 | 4,389 | 4,148 | 3,487 | |||||||||||||||
| Merger and restructuring | 742 | - | - | - | - | |||||||||||||||
| Amortization of core deposit intangible | 297 | 321 | 321 | 348 | 347 | |||||||||||||||
| Other expenses | 2,710 | 3,119 | 2,810 | 2,821 | 2,773 | |||||||||||||||
| Total noninterest expenses | 38,641 | 37,594 | 37,065 | 37,845 | 35,784 | |||||||||||||||
| Income before income tax expense | 23,183 | 25,744 | 23,083 | 25,486 | 28,635 | |||||||||||||||
| Income tax expense | 6,022 | 6,688 | 5,878 | 6,213 | 7,228 | |||||||||||||||
| Net income | 17,161 | 19,056 | 17,205 | 19,273 | 21,407 | |||||||||||||||
| Preferred dividends | 1,509 | 1,509 | 1,509 | 1,509 | 1,509 | |||||||||||||||
| Net income available to common stockholders | $ | 15,652 | $ | 17,547 | $ | 15,696 | $ | 17,764 | $ | 19,898 | ||||||||||
| Weighted average diluted common shares outstanding | 38,525,484 | 38,448,594 | 38,511,747 | 38,651,391 | 38,829,681 | |||||||||||||||
| Diluted EPS (GAAP) | $ | 0.41 | $ | 0.46 | $ | 0.41 | $ | 0.46 | $ | 0.51 | ||||||||||
| Reconciliation of GAAP Net Income to Operating Net Income: | ||||||||||||||||||||
| Net income | $ | 17,161 | $ | 19,056 | $ | 17,205 | $ | 19,273 | $ | 21,407 | ||||||||||
| Merger and restructuring | 742 | - | - | - | - | |||||||||||||||
| Amoritization of core deposit intangibles | 297 | 321 | 321 | 348 | 347 | |||||||||||||||
| FDIC special assessment | - | - | - | 2,100 | - | |||||||||||||||
| Net (gains) losses on equity securities | (432 | ) | 209 | (86 | ) | (557 | ) | 273 | ||||||||||||
| Tax impact of adjustments | (171 | ) | (149 | ) | (66 | ) | (569 | ) | (187 | ) | ||||||||||
| Operating net income | $ | 17,597 | $ | 19,437 | $ | 17,374 | $ | 20,595 | $ | 21,840 | ||||||||||
| Preferred dividends | 1,509 | 1,509 | 1,509 | 1,509 | 1,509 | |||||||||||||||
| Operating net income available to common stockholders | $ | 16,088 | $ | 17,928 | $ | 15,865 | $ | 19,086 | $ | 20,331 | ||||||||||
| Opearting diluted EPS (non-GAAP)(1) | $ | 0.42 | $ | 0.47 | $ | 0.41 | $ | 0.49 | $ | 0.52 | ||||||||||
| Return on Assets Measures | ||||||||||||||||||||
| Average assets | $ | 9,742,853 | $ | 9,745,853 | $ | 9,860,753 | $ | 9,690,746 | $ | 9,625,625 | ||||||||||
| Return on avg. assets | 0.70 | % | 0.79 | % | 0.70 | % | 0.79 | % | 0.88 | % | ||||||||||
| Operating return on avg. assets (non-GAAP)(2) | 0.72 | 0.80 | 0.71 | 0.84 | 0.90 | |||||||||||||||
| _________________________ | ||||||||||||||||||||
| (1)Operating net income available to common stockholders divided by weighted average diluted shares outstanding. | ||||||||||||||||||||
| (2)Operating net income divided by average assets. | ||||||||||||||||||||
| Three Months Ended | ||||||||||||||||||||
| Sept. 30, | Jun. 30, | Mar. 31, | Dec. 31, | Sep. 30, | ||||||||||||||||
| 2024 | 2024 | 2024 | 2023 | 2023 | ||||||||||||||||
| Return on Equity Measures | (dollars in thousands) | |||||||||||||||||||
| Average stockholders' equity | $ | 1,234,724 | $ | 1,220,621 | $ | 1,220,818 | $ | 1,198,389 | $ | 1,202,647 | ||||||||||
| Less: average preferred stock | (110,927 | ) | (110,927 | ) | (110,927 | ) | (110,927 | ) | (110,927 | ) | ||||||||||
| Average common equity | $ | 1,123,797 | $ | 1,109,694 | $ | 1,109,891 | $ | 1,087,462 | $ | 1,091,720 | ||||||||||
| Less: average intangible assets | (213,502 | ) | (213,813 | ) | (214,133 | ) | (214,472 | ) | (214,822 | ) | ||||||||||
| Average tangible common equity | $ | 910,295 | $ | 895,881 | $ | 895,758 | $ | 872,990 | $ | 876,898 | ||||||||||
| Return on avg. common equity (GAAP) | 5.54 | % | 6.36 | % | 5.69 | % | 6.48 | % | 7.23 | % | ||||||||||
| Operating return on avg. common equity (non-GAAP)(3) | 5.70 | 6.50 | 5.75 | 6.96 | 7.39 | |||||||||||||||
| Return on avg. tangible common equity (non-GAAP)(4) | 6.93 | 7.98 | 7.15 | 8.18 | 9.11 | |||||||||||||||
| Operating return on avg. tangible common equity (non-GAAP)(5) | 7.03 | 8.05 | 7.12 | 8.67 | 9.20 | |||||||||||||||
| Efficiency Measures | ||||||||||||||||||||
| Total noninterest expenses | $ | 38,641 | $ | 37,594 | $ | 37,065 | $ | 37,845 | $ | 35,784 | ||||||||||
| Merger and restructuring | (742 | ) | - | - | - | - | ||||||||||||||
| Amortization of core deposit intangibles | (297 | ) | (321 | ) | (321 | ) | (348 | ) | (347 | ) | ||||||||||
| FDIC special assessment | - | - | - | (2,100 | ) | - | ||||||||||||||
| Operating noninterest expense | $ | 37,602 | $ | 37,273 | $ | 36,744 | $ | 35,397 | $ | 35,437 | ||||||||||
| Net interest income (tax equivalent basis) | $ | 61,710 | $ | 62,255 | $ | 61,111 | $ | 62,627 | $ | 63,208 | ||||||||||
| Noninterest income | 4,737 | 4,399 | 3,848 | 4,209 | 3,562 | |||||||||||||||
| Net (gains) losses on equity securities | (432 | ) | 209 | (86 | ) | (557 | ) | 273 | ||||||||||||
| Operating revenue | $ | 66,015 | $ | 66,863 | $ | 64,873 | $ | 66,279 | $ | 67,043 | ||||||||||
| Operating efficiency ratio (non-GAAP)(6) | 57.0 | % | 55.7 | % | 56.6 | % | 53.4 | % | 52.9 | % | ||||||||||
| Net Interest Margin | ||||||||||||||||||||
| Average interest-earning assets | $ | 9,206,038 | $ | 9,210,050 | $ | 9,323,291 | $ | 9,172,165 | $ | 9,089,431 | ||||||||||
| Net interest income (tax equivalent basis) | 61,710 | 62,255 | 61,111 | 62,627 | 63,208 | |||||||||||||||
| Net interest margin (GAAP) | 2.67 | % | 2.72 | % | 2.64 | % | 2.71 | % | 2.76 | % | ||||||||||
| _________________________ | ||||||||||||||||||||
| (3)Operating net income available to common stockholders divided by average common equity. | ||||||||||||||||||||
| (4)Net income available to common stockholders, excluding amortization of intangible assets, divided by average tangible common equity. | ||||||||||||||||||||
| (5)Operating net income available to common stockholders, divided by average tangible common equity. | ||||||||||||||||||||
| (6)Operating noninterest expense divided by operating revenue. | ||||||||||||||||||||
| As of | ||||||||||||||||||||
| Sept. 30, | Jun. 30, | Mar. 31, | Dec. 31, | Sep. 30, | ||||||||||||||||
| 2024 | 2024 | 2024 | 2023 | 2023 | ||||||||||||||||
| Capital Ratios and Book Value per Share | (dollars in thousands, except for per share data) | |||||||||||||||||||
| Stockholders equity | $ | 1,239,496 | $ | 1,224,227 | $ | 1,216,609 | $ | 1,216,620 | $ | 1,188,154 | ||||||||||
| Less: preferred stock | (110,927 | ) | (110,927 | ) | (110,927 | ) | (110,927 | ) | (110,927 | ) | ||||||||||
| Common equity | $ | 1,128,569 | $ | 1,113,300 | $ | 1,105,682 | $ | 1,105,693 | $ | 1,077,227 | ||||||||||
| Less: intangible assets | (213,307 | ) | (213,604 | ) | (213,925 | ) | (214,246 | ) | (214,594 | ) | ||||||||||
| Tangible common equity | $ | 915,262 | $ | 899,696 | $ | 891,757 | $ | 891,447 | $ | 862,633 | ||||||||||
| Total assets | $ | 9,639,603 | $ | 9,723,731 | $ | 9,853,964 | $ | 9,855,603 | $ | 9,678,885 | ||||||||||
| Less: intangible assets | (213,307 | ) | (213,604 | ) | (213,925 | ) | (214,246 | ) | (214,594 | ) | ||||||||||
| Tangible assets | $ | 9,426,296 | $ | 9,510,127 | $ | 9,640,039 | $ | 9,641,357 | $ | 9,464,291 | ||||||||||
| Common shares outstanding | 38,368,217 | 38,365,069 | 38,333,053 | 38,519,770 | 38,621,970 | |||||||||||||||
| Common equity ratio (GAAP) | 11.71 | % | 11.45 | % | 11.22 | % | 11.22 | % | 11.13 | % | ||||||||||
| Tangible common equity ratio (non-GAAP)(7) | 9.71 | 9.46 | 9.25 | 9.25 | 9.11 | |||||||||||||||
| Regulatory capital ratios (Bancorp): | ||||||||||||||||||||
| Leverage ratio | 11.10 | % | 10.97 | % | 10.73 | % | 10.86 | % | 10.86 | % | ||||||||||
| Common equity Tier 1 risk-based ratio | 11.07 | 10.90 | 10.70 | 10.62 | 10.64 | |||||||||||||||
| Risk-based Tier 1 capital ratio | 12.42 | 12.25 | 12.03 | 11.95 | 11.98 | |||||||||||||||
| Risk-based total capital ratio | 14.29 | 14.10 | 13.88 | 13.77 | 13.90 | |||||||||||||||
| Regulatory capital ratios (Bank): | ||||||||||||||||||||
| Leverage ratio | 11.43 | % | 11.29 | % | 11.10 | % | 11.20 | % | 11.23 | % | ||||||||||
| Common equity Tier 1 risk-based ratio | 12.79 | 12.60 | 12.43 | 12.31 | 12.38 | |||||||||||||||
| Risk-based Tier 1 capital ratio | 12.79 | 12.60 | 12.43 | 12.31 | 12.38 | |||||||||||||||
| Risk-based total capital ratio | 13.77 | 13.58 | 13.41 | 13.28 | 13.43 | |||||||||||||||
| Book value per share (GAAP) | $ | 29.41 | $ | 29.02 | $ | 28.84 | $ | 28.70 | $ | 27.89 | ||||||||||
| Tangible book value per share (non-GAAP)(8) | 23.85 | 23.45 | 23.26 | 23.14 | 22.34 | |||||||||||||||
| Net Loan Charge-offs (Recoveries): | ||||||||||||||||||||
| Net loan charge-offs (recoveries): | ||||||||||||||||||||
| Charge-offs | $ | 3,559 | $ | 3,595 | $ | 3,185 | $ | 8,960 | $ | 2,487 | ||||||||||
| Recoveries | (53 | ) | (324 | ) | (23 | ) | - | (8 | ) | |||||||||||
| Net loan charge-offs | $ | 3,506 | $ | 3,271 | $ | 3,162 | $ | 8,960 | $ | 2,479 | ||||||||||
| Net loan charge-offs as a % of average loans receivable (annualized) | 0.17 | % | 0.16 | % | 0.15 | % | 0.43 | % | 0.12 | % | ||||||||||
| Asset Quality | ||||||||||||||||||||
| Nonaccrual loans | $ | 51,300 | $ | 46,026 | $ | 47,438 | $ | 52,524 | $ | 56,059 | ||||||||||
| Other real estate owned | - | - | - | - | - | |||||||||||||||
| Nonperforming assets | $ | 51,300 | $ | 46,026 | $ | 47,438 | $ | 52,524 | $ | 56,059 | ||||||||||
| Allowance for credit losses - loans ("ACL") | $ | 82,494 | $ | 82,077 | $ | 82,869 | $ | 81,974 | $ | 88,230 | ||||||||||
| Loans receivable | 8,111,976 | 8,157,903 | 8,297,957 | 8,345,145 | 8,181,109 | |||||||||||||||
| Nonaccrual loans as a % of loans receivable | 0.63 | % | 0.56 | % | 0.57 | % | 0.63 | % | 0.69 | % | ||||||||||
| Nonperforming assets as a % of total assets | 0.53 | 0.47 | 0.48 | 0.53 | 0.58 | |||||||||||||||
| ACL as a % of loans receivable | 1.02 | 1.01 | 1.00 | 0.98 | 1.08 | |||||||||||||||
| ACL as a % of nonaccrual loans | 160.8 | 178.3 | 174.7 | 156.1 | 157.4 | |||||||||||||||
| _________________________ | ||||||||||||||||||||
| (7)Tangible common equity divided by tangible assets. | ||||||||||||||||||||
| (8)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, 2024 | June 30, 2024 | September 30, 2023 | |||||||||||||||||||||||||||
| Average | Average | Average | |||||||||||||||||||||||||||
| Interest-earning assets: | Balance | Interest | Rate(7) | Balance | Interest | Rate(7) | Balance | Interest | Rate(7) | ||||||||||||||||||||
| Investment securities(1) (2) | $ | 736,946 | $ | 6,157 | 3.32 | % | $ | 739,591 | $ | 6,102 | 3.32 | % | $ | 723,408 | $ | 5,566 | 3.05 | % | |||||||||||
| Loans receivable and loans held-for-sale(2) (3) (4) | 8,123,416 | 119,805 | 5.87 | 8,212,825 | 120,663 | 5.91 | 8,169,310 | 115,954 | 5.63 | ||||||||||||||||||||
| Federal funds sold and interest- | |||||||||||||||||||||||||||||
| bearing deposits with banks | 304,009 | 4,056 | 5.31 | 212,811 | 2,841 | 5.37 | 158,155 | 2,110 | 5.29 | ||||||||||||||||||||
| Restricted investment in bank stock | 41,667 | 1,048 | 10.01 | 44,823 | 1,217 | 10.92 | 38,558 | 907 | 9.33 | ||||||||||||||||||||
| Total interest-earning assets | 9,206,038 | 131,066 | 5.66 | 9,210,050 | 130,823 | 5.71 | 9,089,431 | 124,537 | 5.44 | ||||||||||||||||||||
| Allowance for credit losses | (83,355 | ) | (84,681 | ) | (89,966 | ) | |||||||||||||||||||||||
| Noninterest-earning assets | 620,170 | 620,484 | 626,160 | ||||||||||||||||||||||||||
| Total assets | $ | 9,742,853 | $ | 9,745,853 | $ | 9,625,625 | |||||||||||||||||||||||
| Interest-bearing liabilities: | |||||||||||||||||||||||||||||
| Time deposits | $ | 2,625,329 | 30,245 | 4.58 | $ | 2,587,706 | 28,898 | 4.49 | $ | 2,606,122 | 25,437 | 3.87 | |||||||||||||||||
| Other interest-bearing deposits | 3,747,427 | 33,540 | 3.56 | 3,721,167 | 33,188 | 3.59 | 3,723,561 | 30,606 | 3.26 | ||||||||||||||||||||
| Total interest-bearing deposits | 6,372,756 | 63,785 | 3.98 | 6,308,873 | 62,086 | 3.96 | 6,329,683 | 56,043 | 3.51 | ||||||||||||||||||||
| Borrowings | 717,586 | 4,239 | 2.35 | 787,256 | 5,150 | 2.63 | 651,112 | 3,950 | 2.41 | ||||||||||||||||||||
| Subordinated debentures, net | 79,735 | 1,312 | 6.55 | 79,609 | 1,311 | 6.62 | 79,230 | 1,312 | 6.57 | ||||||||||||||||||||
| Finance lease | 1,349 | 20 | 5.90 | 1,416 | 21 | 5.96 | 1,603 | 24 | 5.94 | ||||||||||||||||||||
| Total interest-bearing liabilities | 7,171,426 | 69,356 | 3.85 | 7,177,154 | 68,568 | 3.84 | 7,061,628 | 61,329 | 3.45 | ||||||||||||||||||||
| Noninterest-bearing demand deposits | 1,259,912 | 1,256,251 | 1,275,325 | ||||||||||||||||||||||||||
| Other liabilities | 76,791 | 91,827 | 86,025 | ||||||||||||||||||||||||||
| Total noninterest-bearing liabilities | 1,336,703 | 1,348,078 | 1,361,350 | ||||||||||||||||||||||||||
| Stockholders' equity | 1,234,724 | 1,220,621 | 1,202,647 | ||||||||||||||||||||||||||
| Total liabilities and stockholders' equity | $ | 9,742,853 | $ | 9,745,853 | $ | 9,625,625 | |||||||||||||||||||||||
| Net interest income (tax equivalent basis) | 61,710 | 62,255 | 63,208 | ||||||||||||||||||||||||||
| Net interest spread(5) | 1.82 | % | 1.87 | % | 1.99 | % | |||||||||||||||||||||||
| Net interest margin(6) | 2.67 | % | 2.72 | % | 2.76 | % | |||||||||||||||||||||||
| Tax equivalent adjustment | (823 | ) | (816 | ) | (851 | ) | |||||||||||||||||||||||
| Net interest income | $ | 60,887 | $ | 61,439 | $ | 62,357 | |||||||||||||||||||||||
| _________________________ | |||||||||||||||||||||||||||||
| (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. | |||||||||||||||||||||||||||||
