NASDAQ$CNOB

ConnectOne Bancorp Inc · Q1 2021 earnings

Q1 2021 earnings · · Investor relations

Briefing

Reported strong first quarter results driven by margin expansion and industry-leading operating efficiency.

ConnectOne Bancorp reported a net income of $33.0 million for Q1 2021, a significant increase compared to $25.6 million in Q4 2020 and $6.0 million in Q1 2020. The diluted earnings per share were $0.82, up from $0.64 in the previous quarter and $0.15 in the same quarter last year. The increase in net income and diluted earnings per share from the fourth quarter of 2020 was primarily due to a $5.8 million recapture of credit loss reserves in the current quarter reflecting the impact of the improved economic outlook on the current expected credit losses (“CECL”) accounting estimate, compared with a $5.0 million provision in the fourth quarter of 2020.

  • Net income for the first quarter of 2021 was $33.0 million, compared to $6.0 million for the first quarter of 2020.
  • Diluted earnings per share were $0.82 for the first quarter of 2021, compared to $0.15 for the first quarter of 2020.
  • Fully taxable equivalent net interest income for the first quarter of 2021 was $61.6 million, an increase of 10.4% from the first quarter of 2020.
  • The Board of Directors declared a cash dividend on its common stock of $0.11 per share, a 22.2% increase from the prior common dividend.

Headline financials

Total Revenue

$64.6M

Previous: $58.1M+11.1%
EPS (adj)

$0.82

Previous: $0.15+446.7%
Operating Return on Avg. Tangible Common Equity

19.1%

No prior period
Operating Return on Avg. Assets

1.8%

No prior period
Net Interest Margin (non-GAAP)

3.6%

Previous: 3.4%+4.4%
Capital Expenditures

-$67K

Previous: -$1.73M+96.1%
Free Cash Flow

$32.9M

Previous: $4.3M+665.5%
Net Income

$33M

Previous: $6.03M+447.2%
Operating Income

$38.3M

Previous: $7.39M+417.6%
Gross Profit

$53.5M

Previous: $42.1M+27.1%
Cash & Equivalents

$260M

Previous: $283M-8.0%
Total Assets

$7.45B

Previous: $7.28B+2.3%
Stock-Based Comp

$972K

Previous: $536K+81.3%

Revenue & EPS history

ConnectOne Bancorp · Revenue · Quarterly

$64.6M

Q1 2021+11.1%vs Q1 2020
Beat estimate in 10 of 16 quarters(63%)
ActualEstimate

Forward guidance

ConnectOne expects net loan growth to accelerate in the quarters ahead and anticipates a significant uptick in client activity as vaccines continue to work through their core footprint.

Tailwinds

  • Strong demand for loans, bolstered by an improving operating environment in the New York Metropolitan area.
  • Existing loan pipeline is at the highest level in the Company’s history.
  • Anticipating a significant uptick in client activity as vaccines continue to work through their core footprint.
  • Investments in infrastructure, communication tools and digital channels have been instrumental in success.
  • Gaining momentum building out SBA leading platform.

Headwinds

  • First quarter loan growth was offset by paydowns, resulting from an excessive amount of liquidity in the marketplace.
  • Overall interest-earning assets decreased.
  • Yield on loans and investment securities is declining.
  • Nonperforming assets remain at elevated levels.
  • Uncertainty regarding the full impact of the COVID-19 pandemic.

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 20 quarterly earnings reports · overlaid with Q1 2021

Historical avgQ1 2021

+0.3%

Avg return

Earnings day

+1.1%

Avg return

5 days after

+3.3%

Avg return

30 days after

57%

37 / 65 earnings

Positive

+8.7%

Q1 2010

Best reaction

-12.5%

Q1 2020

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2026+2.7%+6.2%+6.2%
Q4 2025-0.9%-1.1%-4.7%
Q3 2025+0.2%+1.0%+5.9%
Q1 2025+2.0%+1.7%+2.0%
Q4 2024+5.2%+10.2%+7.1%
Q3 2024-4.9%-3.5%+9.4%
Q2 2024+7.2%+4.6%+8.9%
Q1 2024-7.2%-9.2%+2.5%
Q4 2023-1.8%+1.0%-14.7%
Q3 2023-3.1%+0.4%+18.1%
Q2 2023+1.7%+3.9%-6.0%
Q1 2023+0.4%-6.7%-11.3%
Q4 2022-9.3%-2.7%+0.2%
Q3 2022+0.2%-0.5%+6.2%
Q2 2022+5.2%+7.6%+4.0%
Q1 2022-2.0%-1.2%-4.0%
Q4 2021-3.0%-5.3%-3.9%
Q3 2021+6.6%+7.4%+4.8%
Q2 2021+2.0%+2.4%+14.2%
Q1 2021+0.7%+4.0%+2.7%
Q4 2020+7.4%+13.9%+17.4%
Q3 2020+2.9%+8.9%+22.9%
Q2 2020-1.7%-1.0%+9.3%
Q1 2020-12.5%-13.0%-10.2%
Q4 2019-1.7%-3.6%-7.3%
Q3 2019+6.6%+8.6%+9.9%
Q2 2019-1.6%-1.6%-13.4%
Q1 2019+3.8%+5.1%+5.0%
Q4 2018+0.1%-0.4%+8.7%
Q3 2018+3.3%+6.9%+3.8%
Q2 2018+1.0%+0.6%+3.2%
Q1 2018-6.5%-10.3%-8.4%
Q4 2017+2.1%+3.6%+4.3%
Q3 2017+7.8%+6.8%+5.2%
Q2 2017-0.9%+0.7%+0.0%
Q1 2017-9.0%-7.2%-10.2%
Q4 2016+0.2%-4.3%-0.8%
Q3 2016+2.5%+1.9%+34.3%
Q2 2016+7.1%+8.0%+8.2%
Q1 2016+1.9%
Q4 2015-1.1%
Q3 2015+1.7%
Q2 2015-1.6%
Q1 2015-1.1%
Q4 2014+0.8%
Q3 2014-0.1%
Q2 2014-4.5%
Q1 2014-1.7%
Q4 2013+8.0%
Q3 2013+1.2%
Q2 2013+1.3%
Q1 2013-1.9%
Q4 2012+0.4%
Q3 2012+1.1%
Q2 2012-0.8%
Q1 2011+1.5%
Q1 2012+1.0%
Q4 2009+1.9%
Q4 2011+1.9%
Q3 2010-5.5%
Q3 2011-5.5%
Q4 2010-0.1%
Q2 2011-0.1%
Q2 2010-0.1%
Q1 2010+8.7%

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