NASDAQ$CNOB

ConnectOne Bancorp Inc · Q1 2024 earnings

Q1 2024 earnings · · Investor relations

Briefing

Reported a decrease in net income and diluted earnings per share compared to Q4 2023 and Q1 2023, driven by lower net interest income and increased provision for credit losses.

ConnectOne Bancorp reported a net income available to common stockholders of $15.7 million for Q1 2024, a decrease compared to both Q4 2023 ($17.8 million) and Q1 2023 ($23.4 million). Diluted earnings per share were $0.41, down from $0.46 in Q4 2023 and $0.59 in Q1 2023. The results reflect a challenging environment, with a focus on relationship banking and strategic balance sheet management.

  • Net income available to common stockholders was $15.7 million, and diluted earnings per share were $0.41.
  • Client deposit balances increased sequentially by an annualized 3.2%, driven by 9.9% annualized noninterest-bearing demand deposit growth.
  • Loan balances decreased sequentially by an annualized 2.3%, primarily due to intentionally lower multifamily and commercial real estate balances.
  • The company's tangible common equity ratio remained flat at 9.25%, and tangible book value per share increased to $23.26; the quarterly common stock cash dividend increased by 5.9% to $0.18.

Headline financials

Total Revenue

$64.1M

Previous: $69.9M-8.2%
EPS

$0.41

Previous: $0.59-30.5%
Operating Return on Avg. Tangible Common Equity

7.2%

Previous: 11.1%-35.6%
Operating Return on Avg. Assets

0.7%

Previous: 1.0%-32.7%
Net Interest Margin (non-GAAP)

2.6%

Previous: 3.0%-12.0%
Tangible Book Value per Share (non-GAAP)

$23.26

No prior period
Nonaccrual Loans as a % of Loans Receivable

0.6%

No prior period
Nonperforming Assets as a % of Total Assets

0.5%

No prior period
Annualized Net Loan Charge-offs Ratio

0.1%

Previous: 0.2%-31.8%
ACL as a % of Loans Receivable

1.0%

No prior period
ACL as a % of Nonaccrual Loans

174.7%

No prior period
Tangible Common Equity Ratio (non-GAAP)

9.3%

No prior period
Capital Expenditures

-$138K

Previous: -$2.87M+95.2%
Free Cash Flow

$17.1M

Previous: $22.1M-22.6%
Net Income

$17.2M

Previous: $24.9M-31.0%
Operating Income

-$11.7M

Previous: $18M-165.2%
Gross Profit

$60.1M

Previous: $68.9M-12.7%
Cash & Equivalents

$278M

Previous: $562M-50.6%
Total Assets

$9.85B

Previous: $9.96B-1.1%
Stock-Based Comp

$1.01M

Previous: $1.14M-11.8%

Revenue & EPS history

ConnectOne Bancorp · Revenue · Quarterly

$64.1M

Q1 2024-8.2%vs Q1 2023
Beat estimate in 10 of 15 quarters(67%)
ActualEstimate

Forward guidance

ConnectOne is already seeing a gradual expansion of the NIM, even ahead of potential Fed rate cuts. The company's tangible common equity ratio remained flat, and tangible book value per share increased.

Tailwinds

  • Sequential client deposit growth.
  • Noninterest-bearing demand deposit growth.
  • Anticipated NIM expansion.
  • Tangible common equity ratio stability.
  • Increased quarterly common stock cash dividend.

Headwinds

  • Challenging backdrop.
  • Decrease in net income compared to previous quarters.
  • Decrease in net interest income.
  • Increase in the provision for credit losses.
  • Decrease in loan balances.

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 2024

Historical avgQ1 2024

+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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