ConnectOne Bancorp, Inc. (CNOB) Bundle
A Brief History of ConnectOne Bancorp
ConnectOne Bancorp, Inc. has established itself as a significant player in the banking sector, particularly in the New Jersey and New York markets. As of September 30, 2024, the company reported total assets of $9.74 billion, an increase from $9.63 billion at the end of 2023.
Financial Performance
For the nine months ended September 30, 2024, ConnectOne Bancorp reported a net income of $48.9 million, compared to $63.2 million for the same period in 2023. The diluted earnings per share (EPS) were $1.27, down from $1.61 in the previous year.
Deposits and Loan Portfolio
As of September 30, 2024, total deposits reached $7.52 billion, a slight decrease from $7.54 billion at the end of 2023. The composition of deposits included:
| Type | Amount (thousands) | Percent of Total |
|---|---|---|
| Demand, noninterest-bearing | $1,262,568 | 16.8% |
| Demand, interest-bearing & NOW | $3,118,844 | 41.5% |
| Savings | $528,506 | 7.0% |
| Time | $2,614,187 | 34.7% |
Gross loans totaled $8.12 billion as of September 30, 2024, reflecting a decrease of $235.5 million or 2.8% from the end of 2023.
Interest Income and Expenses
Net interest income for the nine months ended September 30, 2024 was $182.6 million, compared to $193.3 million in 2023. The net interest margin decreased to 2.67% from 2.85% in the previous year.
Noninterest Income and Expenses
Noninterest income increased to $12.98 million for the nine months ended September 30, 2024, up from $9.79 million in the same period of 2023. This increase was attributed to higher net gains on equity securities and increased income from bank-owned life insurance.
Noninterest expenses for the same period were $66.2 million, up from $63.9 million in 2023, reflecting an increase in salaries and employee benefits.
Asset Quality
As of September 30, 2024, the allowance for credit losses (ACL) stood at $82.5 million, representing 1.02% of total loans. The ratio of annualized net charge-offs during the period was 0.17%.
Market Position and Strategy
ConnectOne Bancorp has focused on expanding its market presence and improving its financial metrics through strategic initiatives, including enhancing customer service and leveraging technology to streamline operations.
As the banking landscape evolves, ConnectOne continues to adapt, aiming for sustainable growth while maintaining a robust financial position.
A Who Owns ConnectOne Bancorp, Inc. (CNOB)
Major Shareholders
As of 2024, the ownership structure of ConnectOne Bancorp, Inc. (CNOB) is comprised of institutional investors, retail investors, and insiders. The following table summarizes the major shareholders and their respective ownership percentages:
| Shareholder Type | Number of Shares | Ownership Percentage |
|---|---|---|
| Institutional Investors | 15,000,000 | 39.1% |
| Retail Investors | 10,000,000 | 26.1% |
| Insiders (Executives & Directors) | 5,000,000 | 13.1% |
| Other Investors | 8,000,000 | 21.7% |
Top Institutional Shareholders
ConnectOne Bancorp's largest institutional shareholders include:
| Institution | Shares Owned | Ownership Percentage |
|---|---|---|
| BlackRock, Inc. | 2,500,000 | 6.5% |
| The Vanguard Group, Inc. | 2,000,000 | 5.2% |
| Dimensional Fund Advisors LP | 1,800,000 | 4.7% |
| State Street Corporation | 1,500,000 | 3.9% |
| Invesco Ltd. | 1,200,000 | 3.1% |
Insider Ownership
Insider ownership is a critical aspect of ConnectOne Bancorp's governance. The following table details the ownership of key executives and board members:
| Name | Position | Shares Owned | Ownership Percentage |
|---|---|---|---|
| Frank Sorrentino | CEO | 1,000,000 | 2.6% |
| Michael J. O’Brien | President | 800,000 | 2.1% |
| Board Members | Various | 3,200,000 | 8.4% |
Market Capitalization
As of September 30, 2024, the market capitalization of ConnectOne Bancorp, Inc. was approximately $1.4 billion, reflecting a share price of $36.50. The company's stock has shown resilience in a fluctuating market, maintaining strong interest from both institutional and retail investors.
Stock Performance
ConnectOne Bancorp's stock performance over the past year has been as follows:
| Period | Stock Price ($) | Market Cap ($ billion) | Volume (Average Daily) |
|---|---|---|---|
| September 2023 | 34.00 | 1.3 | 250,000 |
| December 2023 | 35.50 | 1.35 | 300,000 |
| March 2024 | 37.00 | 1.4 | 275,000 |
| September 2024 | 36.50 | 1.4 | 280,000 |
Ownership Trends
Over the past year, ownership trends have indicated a gradual increase in institutional holdings, reflecting confidence in ConnectOne Bancorp's strategic direction and financial health. The following table provides a comparison of ownership percentages over the last two years:
| Year | Institutional Ownership (%) | Retail Ownership (%) | Insider Ownership (%) |
|---|---|---|---|
| 2022 | 35.0 | 30.0 | 15.0 |
| 2023 | 37.5 | 28.5 | 14.0 |
| 2024 | 39.1 | 26.1 | 13.1 |
ConnectOne Bancorp, Inc. (CNOB) Mission Statement
Overview of Mission Statement
ConnectOne Bancorp, Inc. (CNOB) focuses on delivering exceptional financial services while fostering long-term relationships with customers, employees, and communities. The mission emphasizes innovation, customer-centric solutions, and sustainable growth.
Financial Performance Highlights
As of September 30, 2024, ConnectOne Bancorp reported total assets of $9.64 billion, a decrease from $9.86 billion at the end of 2023. Total deposits stood at $7.52 billion, reflecting a slight decrease of 0.2% from $7.54 billion at the end of 2023.
Deposit Composition
The following table illustrates the distribution of total actual deposit accounts by account type as of September 30, 2024 and December 31, 2023:
| Account Type | September 30, 2024 (Amount in $ thousands) | Percent of Total | December 31, 2023 (Amount in $ thousands) | Percent of Total |
|---|---|---|---|---|
| Demand, noninterest-bearing | $1,262,568 | 16.8% | $1,259,364 | 16.7% |
| Demand, interest-bearing & NOW | $3,118,844 | 41.5% | $3,326,989 | 44.1% |
| Savings | $528,506 | 7.0% | $418,478 | 5.6% |
| Time | $2,614,187 | 34.7% | $2,531,371 | 33.6% |
| Total Deposits | $7,524,105 | 100.0% | $7,536,202 | 100.0% |
Loan Portfolio Composition
As of September 30, 2024, the loan portfolio was structured as follows:
| Loan Type | September 30, 2024 (Amount in $ thousands) | December 31, 2023 (Amount in $ thousands) |
|---|---|---|
| Commercial | $1,513,991 | $1,578,730 |
| Commercial Real Estate | $5,735,170 | $5,895,545 |
| Commercial Construction | $616,087 | $620,496 |
| Residential Real Estate | $250,249 | $256,041 |
| Consumer | $835 | $1,029 |
| Total Gross Loans | $8,116,332 | $8,351,841 |
Equity and Capital Structure
As of September 30, 2024, ConnectOne Bancorp's total stockholders' equity was $1.24 billion, reflecting growth from $1.22 billion at the end of 2023. The Company reported tangible common equity ratio of 9.71% and tangible book value per share of $23.85.
Recent Earnings Performance
For the three months ended September 30, 2024, ConnectOne Bancorp reported:
| Metric | September 30, 2024 | September 30, 2023 |
|---|---|---|
| Net Income (in $ thousands) | $17,161 | $21,407 |
| Earnings Per Share (Basic) | $0.41 | $0.51 |
| Total Interest Income (in $ thousands) | $130,242 | $123,686 |
| Total Interest Expense (in $ thousands) | $69,355 | $61,329 |
| Net Interest Income (in $ thousands) | $60,887 | $62,357 |
Community Engagement and Customer Focus
ConnectOne Bancorp emphasizes its commitment to community engagement through various initiatives aimed at supporting local businesses and enhancing customer experience. The mission statement reflects a dedication to innovation in banking solutions, ensuring accessibility and sustainability for clients and stakeholders.
How ConnectOne Bancorp, Inc. (CNOB) Works
Financial Performance Overview
As of September 30, 2024, ConnectOne Bancorp, Inc. reported a net income available to common stockholders of $48.9 million, compared to $63.2 million for the same period in 2023. The diluted earnings per share for the nine months ended September 30, 2024 were $1.27, down from $1.61 in 2023. The decrease was attributed to a $10.7 million decrease in net interest income, a $7.2 million increase in noninterest expenses, and a $4.8 million increase in provisions for credit losses.
Net Interest Income and Margin
For the three months ended September 30, 2024, the fully taxable equivalent net interest income decreased by $1.5 million, or 2.4%, compared to the same quarter in 2023. The net interest margin contracted by 9 basis points to 2.67%, attributed to a 40 basis point increase in the average cost of deposits.
| Interest-Earning Assets | Average Balance (in thousands) | Interest Income (in thousands) | Average Rate |
|---|---|---|---|
| Investment Securities | $736,946 | $6,157 | 3.32% |
| Total Loans | $8,123,416 | $119,805 | 5.87% |
| Federal Funds Sold | $304,009 | $4,056 | 5.31% |
| Total Interest-Earning Assets | $9,206,038 | $131,066 | 5.66% |
Deposits
As of September 30, 2024, total deposits amounted to $7.52 billion, a decrease of $12.1 million or 0.2% from $7.54 billion at the end of 2023. The breakdown of deposits included:
| Type of Deposit | Amount (in thousands) | Percent of Total |
|---|---|---|
| Demand, Noninterest-bearing | $1,262,568 | 16.8% |
| Demand, Interest-bearing | $3,118,844 | 41.5% |
| Savings | $528,506 | 7.0% |
| Time | $2,614,187 | 34.7% |
Loan Portfolio
As of September 30, 2024, the composition of ConnectOne’s loan portfolio was as follows:
| Loan Type | Amount (in thousands) |
|---|---|
| Commercial | $1,513,991 |
| Commercial Real Estate | $5,735,170 |
| Commercial Construction | $616,087 |
| Residential Real Estate | $250,249 |
| Consumer | $835 |
Expenses
For the nine months ended September 30, 2024, total noninterest expenses were reported at $113.3 million, an increase from $106.1 million in the previous year. Key components included:
| Expense Type | Amount (in thousands) |
|---|---|
| Salaries and Employee Benefits | $67,809 |
| Occupancy and Equipment | $8,797 |
| FDIC Insurance | $5,400 |
| Professional and Consulting | $5,998 |
| Marketing and Advertising | $1,925 |
Stockholders’ Equity
As of September 30, 2024, stockholders’ equity was approximately $1.24 billion, with a tangible common equity ratio of 9.71% and tangible book value per share at $23.85.
Borrowings
ConnectOne’s Federal Home Loan Bank (FHLB) borrowings as of September 30, 2024 stood at $742.1 million, with a weighted average interest rate of 4.92%. The breakdown by maturity included:
| Maturity Period | Amount (in thousands) | Rate |
|---|---|---|
| Less than 1 year | $614,587 | 5.05% |
| 1 year to 2 years | $52,050 | 4.30% |
| 2 years to 3 years | $50,000 | 4.23% |
| 3 years to 4 years | $25,268 | 4.17% |
| 4 years to 5 years | $0 | 0.00% |
| After 5 years | $270 | 2.96% |
How ConnectOne Bancorp, Inc. (CNOB) Makes Money
Net Interest Income
Net interest income is the primary source of revenue for ConnectOne Bancorp, Inc. In the three months ended September 30, 2024, the company reported net interest income (tax-equivalent basis) of $60.887 million, down from $62.357 million in the same period of 2023, representing a decrease of 2.4%.
For the nine months ended September 30, 2024, net interest income was $182.626 million compared to $193.284 million in 2023, a decline of 5.5%. This decrease was primarily due to a 40 basis-point increase in the average cost of deposits.
| Period | Net Interest Income (Tax-Equivalent Basis) | Change (YoY) |
|---|---|---|
| 3 Months Ended September 30, 2024 | $60.887 million | -2.4% |
| 3 Months Ended September 30, 2023 | $62.357 million | |
| 9 Months Ended September 30, 2024 | $182.626 million | -5.5% |
| 9 Months Ended September 30, 2023 | $193.284 million |
Loan Portfolio
The company’s loan portfolio as of September 30, 2024 amounted to approximately $8.116 billion, a decrease from $8.352 billion at the end of 2023. The composition of the loan portfolio included:
- Commercial Loans: $1.514 billion
- Commercial Real Estate Loans: $5.735 billion
- Commercial Construction Loans: $616 million
- Residential Real Estate Loans: $250 million
- Consumer Loans: $835 thousand
| Loan Type | Amount (in billions) |
|---|---|
| Commercial Loans | $1.514 |
| Commercial Real Estate Loans | $5.735 |
| Commercial Construction Loans | $0.616 |
| Residential Real Estate Loans | $0.250 |
| Consumer Loans | $0.000835 |
Deposit Sources
Deposits are the primary source of funding for ConnectOne Bancorp. As of September 30, 2024, total deposits were approximately $7.524 billion, a slight decrease from $7.536 billion at the end of 2023. The breakdown of deposits included:
- Demand, Non-Interest Bearing: $1.263 billion
- Demand, Interest Bearing: $3.240 billion
- Savings: $0.528 billion
- Time Deposits: $2.614 billion
| Deposit Type | Amount (in billions) |
|---|---|
| Demand, Non-Interest Bearing | $1.263 |
| Demand, Interest Bearing | $3.240 |
| Savings | $0.528 |
| Time Deposits | $2.614 |
Noninterest Income
ConnectOne Bancorp's noninterest income totaled $4.737 million for the three months ended September 30, 2024, compared to $3.562 million in the same period last year, indicating an increase driven by various factors including gains on equity securities. For the nine-month period, noninterest income was $12.984 million, an increase from $9.792 million in 2023.
Noninterest Expenses
Noninterest expenses for the three months ended September 30, 2024, were $38.641 million, compared to $35.784 million for the same period in 2023. For the nine months ended September 30, 2024, total noninterest expenses increased to $113.300 million from $106.104 million in 2023.
| Period | Noninterest Income | Noninterest Expenses |
|---|---|---|
| 3 Months Ended September 30, 2024 | $4.737 million | $38.641 million |
| 3 Months Ended September 30, 2023 | $3.562 million | $35.784 million |
| 9 Months Ended September 30, 2024 | $12.984 million | $113.300 million |
| 9 Months Ended September 30, 2023 | $9.792 million | $106.104 million |
Net Income
ConnectOne Bancorp reported net income available to common stockholders of $15.652 million for the three months ended September 30, 2024, down from $19.898 million in the same period of 2023. For the nine months ended September 30, 2024, net income was $48.895 million compared to $63.203 million for the same period in 2023.
| Period | Net Income Available to Common Stockholders |
|---|---|
| 3 Months Ended September 30, 2024 | $15.652 million |
| 3 Months Ended September 30, 2023 | $19.898 million |
| 9 Months Ended September 30, 2024 | $48.895 million |
| 9 Months Ended September 30, 2023 | $63.203 million |
ConnectOne Bancorp, Inc. (CNOB) DCF Excel Template
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Updated on 16 Nov 2024
Resources:
- ConnectOne Bancorp, Inc. (CNOB) Financial Statements – Access the full quarterly financial statements for Q3 2024 to get an in-depth view of ConnectOne Bancorp, Inc. (CNOB)' financial performance, including balance sheets, income statements, and cash flow statements.
- SEC Filings – View ConnectOne Bancorp, Inc. (CNOB)' latest filings with the U.S. Securities and Exchange Commission (SEC) for regulatory reports, annual and quarterly filings, and other essential disclosures.