NASDAQ$CNOB

ConnectOne Bancorp Inc · Q1 2023 earnings

Q1 2023 earnings · · Investor relations

Briefing

ConnectOne Bancorp reported a decrease in net income and diluted earnings per share for Q1 2023 due to decreased net interest income and increased noninterest expenses, partially offset by decreased provision for credit losses and income tax expense.

ConnectOne Bancorp reported a net income available to common stockholders of $23.4 million for Q1 2023, with diluted earnings per share of $0.59. The results were impacted by a decrease in net interest income and an increase in noninterest expenses, though deposit inflows increased by $400 million.

  • Current liquidity enhanced to nearly $4 billion, representing 250% of uninsured and uncollateralized deposits.
  • Core client net inflows contributed to a $400 million sequential increase in deposits for the quarter.
  • TCE ratio of 8.9% and CET1 ratio of 10.5% at quarter-end, largely unaffected by rising interest rates.
  • Net interest margin compressed to 3.00% due to rising interest costs and liquidity tightening.

Headline financials

Total Revenue

$69.9M

Previous: $73.4M-4.8%
EPS (adj)

$0.59

Previous: $0.75-21.3%
Operating Return on Avg. Tangible Common Equity

11.1%

No prior period
Operating Return on Avg. Assets

1.0%

No prior period
Net Interest Margin (non-GAAP)

3.0%

Previous: 3.7%-19.1%
Annualized Net Loan Charge-offs Ratio

0.2%

Previous: 0.0%+2100.0%
Capital Expenditures

-$2.87M

Previous: -$718K-299.3%
Free Cash Flow

$22.1M

Previous: $30.7M-28.1%
Net Income

$24.9M

Previous: $31.4M-20.6%
Operating Income

$18M

Previous: $58M-69.0%
Gross Profit

$68.9M

Previous: $70.4M-2.2%
Cash & Equivalents

$562M

Previous: $312M+80.5%
Total Assets

$9.96B

Previous: $8.33B+19.5%
Stock-Based Comp

$1.14M

Previous: $1.15M-0.3%

Revenue & EPS history

ConnectOne Bancorp · Revenue · Quarterly

$69.9M

Q1 2023-4.8%vs Q1 2022
Beat estimate in 10 of 15 quarters(67%)
ActualEstimate

Forward guidance

ConnectOne Bancorp anticipates relatively flat loan and expense growth for the remainder of 2023 given the current economic outlook.

Tailwinds

  • Maintaining client relationships
  • Transforming infrastructure
  • Building core deposits
  • High credit standards
  • Diversified relationship-based client philosophy

Headwinds

  • Increased deposit rate competition
  • Accelerated net interest margin compression
  • Near-term headwinds
  • Economic uncertainty
  • Relatively flat loan and expense growth expected

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 2023

Historical avgQ1 2023

+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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