NASDAQ$CNOB

ConnectOne Bancorp Inc · Q2 2022 earnings

Q2 2022 earnings · · Investor relations

Briefing

Reported solid second quarter financial results driven by relationship-banking business model.

ConnectOne Bancorp reported a net income available to common stockholders of $30.8 million and diluted earnings per share of $0.78 for the second quarter of 2022. The company saw an increase in net interest income and noninterest income, offset by increases in provision for credit losses, noninterest expenses, and income tax expense.

  • Pre-tax, pre-provision earnings as a percent of assets increased to 2.28%.
  • Return on assets was 1.56%, and return on tangible common equity was 15.3%.
  • Net interest margin expanded, efficiency ratio remained below 40%, and the nonperforming asset ratio declined.
  • Tangible book value per share has increased by more than 10% over the last twelve months to $20.79.

Headline financials

Total Revenue

$79M

Previous: $67.5M+17.0%
EPS (adj)

$0.78

Previous: $0.81-3.7%
Operating Return on Avg. Tangible Common Equity

15.3%

Previous: 17.8%-14.0%
Operating Return on Avg. Assets

1.6%

Previous: 1.7%-8.8%
Net Interest Margin (non-GAAP)

3.9%

Previous: 3.6%+8.6%
Tangible Book Value per Share (non-GAAP)

$20.79

No prior period
Annualized Net Loan Charge-offs Ratio

0.0%

No prior period
Capital Expenditures

-$1.28M

Previous: -$541K-135.9%
Free Cash Flow

$31.1M

Previous: $31.7M-1.9%
Net Income

$32.4M

Previous: $32.2M+0.4%
Operating Income

$59.5M

Previous: $49.9M+19.3%
Gross Profit

$76M

Previous: $64.1M+18.4%
Cash & Equivalents

$299M

Previous: $349M-14.3%
Total Assets

$8.84B

Previous: $7.71B+14.7%
Stock-Based Comp

$1.15M

Previous: $985K+17.0%

Revenue & EPS history

ConnectOne Bancorp · Revenue · Quarterly

$79M

Q2 2022+17%vs Q2 2021
Beat estimate in 10 of 15 quarters(67%)
ActualEstimate

Forward guidance

ConnectOne is building for the future with investments in technology and strategic partnerships, confident in their ability to remain one of the most efficient banks in the industry.

Tailwinds

  • Organic growth remains strong, with loan portfolio increasing sequentially by 17% on an annualized basis.
  • Noninterest-bearing deposits grew by 20% on an annualized basis.
  • Gaining traction in all markets including Florida, successfully leveraging client-centric culture.
  • Capitalizing on disruption caused by industry M&A by hiring experienced bankers.
  • Partnership with MANTL to streamline and digitize deposit onboarding processing.

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 Q2 2022

Historical avgQ2 2022

+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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