NASDAQ$CNOB

ConnectOne Bancorp Inc · Q3 2022 earnings

Q3 2022 earnings · · Investor relations

Briefing

Reported solid third quarter results driven by strong organic growth and a stable net interest margin.

ConnectOne Bancorp reported a net income available to common stockholders of $27.4 million for Q3 2022, with diluted earnings per share of $0.70. The results reflect continued execution and dedication to relationship banking, with record pre-tax, pre-provision earnings and a robust net interest margin of 3.68%.

  • Achieved record pre-tax, pre-provision earnings, increasing by over 4% sequentially and nearly 12% year-over-year.
  • Net interest margin remained robust at 3.68%.
  • Efficiency ratio remained below 40%.
  • Total deposits grew by 10.5%, surpassing 8.6% in sequential loan growth.

Headline financials

Total Revenue

$81.5M

Previous: $72.3M+12.8%
EPS (adj)

$0.70

Previous: $0.80-12.5%
Operating Return on Avg. Tangible Common Equity

13.2%

Previous: 16.9%-21.9%
Operating Return on Avg. Assets

1.3%

Previous: 1.6%-21.6%
Net Interest Margin (non-GAAP)

3.7%

Previous: 3.7%-1.3%
Tangible Book Value per Share (non-GAAP)

$20.93

Previous: $19.43+7.7%
Capital Expenditures

-$2.35M

Previous: -$2.47M+4.9%
Free Cash Flow

$26.6M

Previous: $29.6M-10.3%
Net Income

$28.9M

Previous: $32.1M-9.9%
Operating Income

$48.6M

Previous: $57.4M-15.3%
Gross Profit

$71.5M

Previous: $70.2M+1.8%
Cash & Equivalents

$334M

Previous: $413M-19.2%
Total Assets

$9.48B

Previous: $7.95B+19.2%
Stock-Based Comp

$1.22M

Previous: $1.25M-2.0%

Revenue & EPS history

ConnectOne Bancorp · Revenue · Quarterly

$81.5M

Q3 2022+12.8%vs Q3 2021
Beat estimate in 10 of 15 quarters(67%)
ActualEstimate

Forward guidance

ConnectOne anticipates loan yields to increase and spreads to widen heading into the fourth quarter, with a moderated pipeline. The company expects to leverage technology investments for infrastructure enhancements and new deposit origination opportunities, while demand remains solid across its markets.

Tailwinds

  • Loan yields are increasing.
  • Spreads continue to widen.
  • Majority of loans originated included a deposit relationship.
  • Investments in technology facilitate enhancements in infrastructure and workflows.
  • Demand remains solid.

Headwinds

  • Loan pipeline has moderated.
  • Increased provision for credit losses.
  • Noninterest expenses increased.
  • Net losses on equity securities.
  • Effective tax rates increased.

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 Q3 2022

Historical avgQ3 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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