ENGLEWOOD CLIFFS, N.J., Oct. 25, 2016 (GLOBE NEWSWIRE) -- ConnectOne Bancorp, Inc. (Nasdaq:CNOB) (the “Company” or “ConnectOne”), parent company of ConnectOne Bank (the “Bank”), today announced results for the third quarter ended September 30, 2016. The Company reported net income available to common stockholders of $11.9 million, or $0.39 per diluted share, compared with net income available to common stockholders of $10.9 million, or $0.36 per diluted share, for the second quarter of 2016 and $10.8 million, or $0.36 per diluted share, for the third quarter of 2015.
Highlights
- Organic loan origination remained strong. Gross loan fundings were $228.7 million for the 2016 third quarter, compared with $238.4 million for the sequential quarter. Net loan growth (fundings less paydowns and payoffs) was $84.6 million for the 2016 third quarter and $112.2 million for the sequential quarter. The loan pipeline remains solid heading into the 2016 fourth quarter.
- The efficiency ratio improved to 41.7% in the 2016 third quarter from 42.2% in the sequential quarter reflecting improved operating leverage. During the 2016 third quarter, total revenue, excluding securities gains, increased by an annualized 10.8%, while operating expenses increased by an annualized 5.5%.
- Total average deposits grew by 9.2% sequentially during the quarter, including 10.1% growth in average noninterest-bearing deposits. The loan to deposit ratio was 105.9% at quarter-end.
- Already sound asset quality metrics improved even further. The nonaccrual loan ratio declined during the 2016 third quarter to 0.33% from 0.65% in the sequential quarter, while the allowance as a percent of nonaccrual loans increased to 327.3% during the 2016 third quarter from 149.5% in the sequential quarter.
- We enhanced financial flexibility by designating all held-to-maturity securities as available-for-sale. The action improves liquidity and results in an immediate pickup in tangible book value per share of approximately $0.25.
- We sold approximately $75 million of investment securities, resulting in net securities gains of $4.1 million. A portion of the proceeds to be invested in securities and bank-owned life insurance (“BOLI”), and projected to result in de minimis earnings dilution.
- We added an additional $5 million in reserves against our NYC-only taxi medallion portfolio, bringing the total specific reserve to 12.2% of outstanding taxi medallion loans. Although weakness persists in open-market transactions for medallions, the NYC taxi industry has recently exhibited some signs of stabilization. More than 95% of the Bank’s approximately $100 million medallion portfolio is current.
- Tangible book value per share increased to $11.60 per share at September 30, 2016 from $11.09 at June 30, 2016 while the tangible common equity ratio increased to 8.39% from 8.14% over the same period.
Frank Sorrentino, ConnectOne’s Chairman and CEO stated, “Operating performance continued to accelerate during the third quarter of 2016, while we took a series of actions likely to result in improved shareholder value. We fortified our balance sheet by setting aside an additional $5 million of reserves for our NYC-taxi medallion portfolio. We changed the designation of approximately $210 million in held-to-maturity securities to available-for-sale and sold $75 million for a more than $4 million gain, thus adding liquidity, increasing capital ratios, and increasing tangible book value per share. We also resolved a large nonperforming asset in a cash transaction that contributed to lowering our September 30, 2016 nonperforming asset ratio to 0.28%. For the current quarter, return on assets was in excess of 1%, return on tangible equity was in excess of 13%, and the efficiency ratio was 41.7%, placing us among the best performing banking institutions. Additionally, we continue to see increased opportunities in our core business strategies resulting from the difficulties many of our competitors face in our markets.”
Operating Results
In addition to the results presented in accordance with Generally Accepted Accounting Principles ("GAAP"), ConnectOne routinely supplements its evaluation with an analysis of certain non-GAAP financial measures including net income available to common stockholders excluding non-core items. ConnectOne believes these non-GAAP financial measures, in addition to the related GAAP measures, provide meaningful information to investors in understanding our operating performance and trends, and facilitates comparisons with the performance of peers. Reconciliations of non-GAAP disclosures used in this earnings release to the comparable GAAP measures are provided in the accompanying tables.
Third quarter 2016 results reflect the following non-core items: $1.1 million of income resulting from accretion of purchase accounting fair value marks; $0.2 million in additional loan loss provision related to the maturity and extension of acquired portfolio loans; $5.0 million in additional provision associated with the Bank’s New York City taxi medallion loan portfolio; $4.1 million of net securities gains; $0.1 million of pension settlement expenses, which had no impact on total stockholders’ equity or book value per share, and $0.2 million in amortization of intangible assets. Excluding these non-core items, along with related income tax impact, net income available to common stockholders was $12.0 million, or $0.40 per diluted share, for the third quarter of 2016, $11.4 million, or $0.38 per diluted share, for the second quarter of 2016, and $10.5 million, or $0.35 per diluted share, for the third quarter of 2015.
Fully taxable equivalent net interest income for the third quarter of 2016 was $33.8 million, an increase of $0.7 million, or 2.0%, from the second quarter of 2016. This was the result of a 3.3% increase in average interest-earning assets, partially offset by an 8 basis-point contraction of the net interest rate margin. Included in net interest income was accretion and amortization of purchase accounting adjustments of $1.0 million during the third quarter of 2016 and $1.2 million in the second quarter of 2016. Excluding these purchase accounting adjustments, the adjusted net interest margin was 3.22% in the third quarter of 2016, contracting by 6 basis points from the second quarter of 2016 adjusted net interest margin of 3.28%. The decrease in the adjusted net interest margin was primarily attributable to an increase in average cash balances held at the Federal Reserve Bank.
Fully taxable equivalent net interest income for the third quarter of 2016 increased by $3.4 million, or 11.1%, from the same quarter of 2015. This was a result of a 17.4% increase in average interest-earning assets due to significant organic loan growth, partially offset by an 18 basis-point contraction of the net interest margin. Included in net interest income was accretion and amortization of purchase accounting adjustments of $1.0 million during the third quarter of 2016 and $1.3 million in the same quarter of 2015. Excluding these purchase accounting adjustments, the current quarter’s adjusted net interest margin was 13 basis points lower than the 2015 third quarter adjusted net interest margin of 3.35%. The reduction in the adjusted net interest margin was due primarily to higher level of cash balances held at the Federal Reserve Bank and an increase in rates paid on deposits.
Noninterest income totaled $5.6 million in the third quarter of 2016, $1.6 million in the second quarter of 2016 and $3.8 million in the third quarter of 2015. Net securities gains were $4.1 million for the third quarter of 2016, $0.1 million for the second quarter of 2016 and $2.1 million for the third quarter of 2015. Excluding the securities gains, noninterest income remained relatively flat from the sequential quarter. At the end of the third quarter of 2016, the Bank purchased an additional $17 million in BOLI, which is expected to result in increased noninterest income in future quarters. Noninterest income also includes deposit fees, annuities and life insurance commissions, and gains on sales of residential mortgages in the secondary market.
Noninterest expenses totaled $14.6 million for the third quarter of 2016, up modestly from $14.4 million for the second quarter of 2016, due to flat salaries and employee benefits expense and a slight increase in various other expense categories. Noninterest expenses were up $1.3 million for the third quarter of 2016 when compared to $13.3 million for the third quarter of 2015. The increase was largely attributable to increases in salaries and employee benefits ($0.9 million), FDIC insurance premiums ($0.2 million) and occupancy and equipment ($0.1 million). The increases over the prior year third quarter were the result of increased levels of business and staff resulting from organic growth.
Income tax expense was $5.4 million for the third quarter of 2016, compared to $5.0 million for the second quarter of 2016 and $5.2 million for the third quarter of 2015, resulting in effective tax rates of 31.5% in 2016 and 32.5% in 2015. The effective tax rate for the full year 2016 is expected to remain at approximately 31.5%.
Asset Quality
The provision for loan and lease losses increased to $6.8 million in the third quarter of 2016 from $3.8 million in the second quarter of 2016, and from $4.2 million in the third quarter of 2015. The increases were largely attributable to an increase in additional reserves specifically allocated to the Bank’s NYC-only taxi medallion portfolio.
As of September 30, 2016, loans secured by New York City taxi medallions totaled $102.7 million. Troubled debt restructurings associated with this portfolio totaled $95.2 million and total nonaccrual loans were $3.7 million at quarter-end. Troubled debt restructurings increased by $7.2 million from the second quarter of 2016, while nonaccrual loans decreased by $0.2 million, resulting from partial charge-offs. Specific reserves for taxi medallion loans totaled $12.5 million, or 12.2%, of total taxi medallion portfolio. The Bank’s valuation of a corporate medallion, which represent approximately 95% of total exposure, was approximately $700 thousand as of September 30, 2016, down from approximately $750 thousand as of June 30, 2016.
Nonperforming assets, which includes nonaccrual loans and other real estate owned, were $12.1 million at September 30, 2016, $23.3 million at December 31, 2015, and $16.1 million at September 30, 2015. Nonperforming assets as a percent of total assets were 0.28% at September 30, 2016, 0.58% at December 31, 2015, and 0.42% at September 30, 2015. Annualized net charge-offs were 0.22% for the third quarter of 2016, 0.01% for the second quarter of 2016, and 0.02% for the third quarter of 2015. The allowance for loan and lease losses was $37.6 million, representing 1.09% of loans receivable and 327.3% of nonaccrual loans at September 30, 2016. At December 31, 2015, the allowance was $26.6 million representing 0.86% of loans receivable and 128.1% of nonaccrual loans, and at September 30, 2015, the allowance was $21.5 million representing 0.73% of loans receivable and 167.1% of nonaccrual loans. In purchase accounting, any allowance for loan and lease losses on an acquired loan portfolio is reversed and a credit risk discount is applied directly to the acquired loan balances. In Management’s opinion, a useful non-GAAP metric is the ratio of allowance for loan and lease losses plus the credit risk discount to total loans receivable. This non-GAAP ratio was 1.39% at September 30, 2016, 1.28% at December 31, 2015, and 1.20% at September 30, 2015. (See Supplemental GAAP and non-GAAP Financial Measures).
Selected Balance Sheet Items
At September 30, 2016, the Company’s total assets were $4.3 billion, an increase of $312 million from December 31, 2015. Total loans at September 30, 2016 were $3.5 billion, reflecting net loan growth (loan originations less pay-downs and pay-offs) of $362 million from December 31, 2015, primarily attributable to multifamily ($80 million, including a $28 million loan reclassified during the first quarter of 2016 as multifamily from other commercial real estate), commercial and industrial (“C&I”) ($79 million), other commercial real estate ($62 million, including the aforementioned reclassification) and construction ($142 million), which reflected higher utilization of existing construction facilities. The growth in loans was primarily funded with increases in deposits.
During the third quarter of 2016, the Company transferred its held-to-maturity investment securities (approximately $210 million) to available-for-sale designation. Transferred securities were recorded at fair market value in the available-for-sale portfolio and any gains or losses were recorded in other comprehensive income, net of any deferred tax obligation. This transfer will enhance liquidity and increase flexibility with regard to asset-liability management and balance sheet composition. In addition, the Company sold approximately $75 million of investment securities with an approximate weighted average book yield of 2.80%, approximate duration of 6.5 years, and average risk weighting of approximately 50%, resulting in a net securities gain of $4.1 million.
The Company’s stockholders’ equity was $500 million at September 30, 2016, an increase of $22 million from December 31, 2015. The increase in stockholders’ equity was primarily attributable to an increase of $26 million in retained earnings, approximately $2 million of equity issuance related to stock-based compensation, including the exercise of stock options, and an increase in accumulated other comprehensive income of $5 million, offset by an $11 million payoff of SBLF preferred stock. As of September 30, 2016, the Company’s tangible common equity ratio and tangible book value per share were 8.39% and $11.60, respectively. As of December 31, 2015, the tangible common equity ratio and tangible book value per share were 8.18% and $10.51, respectively. Total goodwill and other intangible assets were approximately $149 million and $150 million as of September 30, 2016 and December 31, 2015, respectively.
About ConnectOne Bancorp, Inc.
ConnectOne is a New Jersey corporation and a registered bank holding company pursuant to the Bank Holding Company Act of 1956, as amended, and serves as the holding company for ConnectOne Bank ("the Bank"). The Bank is a community-based, full-service New Jersey-chartered commercial bank that was founded in 2005. The Bank operates from its headquarters located at 301 Sylvan Avenue in the Borough of Englewood Cliffs, Bergen County, New Jersey, and through its 20 other banking offices.
For more information visit https://www.ConnectOneBank.com/.
Forward-Looking Statements
This news release contains certain forward-looking statements which are based on certain assumptions and describe future plans, strategies and expectations of the Company. These forward-looking statements are generally identified by use of the words "believe," "expect," "intend," "anticipate," "estimate," "project," or similar expressions. The Company's ability to predict results or the actual effect of future plans or strategies is inherently uncertain. Factors which could have a material adverse effect on the operations of the Company and its subsidiaries include, but are not limited to, those factors set forth in Item 1A – Risk Factors of the Company’s Annual Report on Form 10-K, as filed with the Securities Exchange Commission, and changes in interest rates, general economic conditions, legislative/regulatory changes, monetary and fiscal policies of the U.S. Government, including policies of the U.S. Treasury and the Federal Reserve Board, the quality or composition of the loan or investment portfolios, demand for loan products, deposit flows, competition, demand for financial services in the Company's market area and accounting principles and guidelines. These risks and uncertainties should be considered in evaluating forward-looking statements and undue reliance should not be placed on such statements. The Company does not undertake, and specifically disclaims any obligation, to publicly release the result of any revisions which may be made to any forward-looking statements to reflect events or circumstances after the date of such statements or to reflect the occurrence of anticipated or unanticipated events.
| CONNECTONE BANCORP, INC. AND SUBSIDIARIES | |||||||||||
| CONSOLIDATED CONDENSED STATEMENTS OF FINANCIAL CONDITION | |||||||||||
| (dollars in thousands) | |||||||||||
| September 30, | December 31, | September 30, | |||||||||
| 2016 | 2015 | 2015 | |||||||||
| (unaudited) | (audited) | (unaudited) | |||||||||
| ASSETS | |||||||||||
| Cash and due from banks | $ | 49,028 | $ | 31,291 | $ | 30,100 | |||||
| Interest-bearing deposits with banks | 184,766 | 169,604 | 128,421 | ||||||||
| Cash and cash equivalents | 233,794 | 200,895 | 158,521 | ||||||||
| Investment securities: | |||||||||||
| Available-for-sale | 338,459 | 195,770 | 224,214 | ||||||||
| Held-to-maturity (fair value of $ - , $230,558, $234,493) | - | 224,056 | 227,221 | ||||||||
| Loans held-for-sale | 15,112 | - | 990 | ||||||||
| Loans receivable | 3,445,476 | 3,099,007 | 2,953,381 | ||||||||
| Less: Allowance for loan and lease losses | 37,615 | 26,572 | 21,533 | ||||||||
| Net loans receivable | 3,407,861 | 3,072,435 | 2,931,848 | ||||||||
| Investment in restricted stock, at cost | 24,535 | 32,612 | 30,362 | ||||||||
| Bank premises and equipment, net | 22,112 | 22,333 | 21,523 | ||||||||
| Accrued interest receivable | 12,497 | 12,545 | 11,662 | ||||||||
| Bank-owned life insurance | 97,644 | 78,801 | 53,681 | ||||||||
| Other real estate owned | 626 | 2,549 | 3,244 | ||||||||
| Goodwill | 145,909 | 145,909 | 145,909 | ||||||||
| Core deposit intangibles | 3,281 | 3,908 | 4,125 | ||||||||
| Other assets | 25,974 | 24,096 | 24,126 | ||||||||
| Total assets | $ | 4,327,804 | $ | 4,015,909 | $ | 3,837,426 | |||||
| LIABILITIES | |||||||||||
| Deposits: | |||||||||||
| Noninterest-bearing | $ | 655,683 | $ | 650,775 | $ | 586,643 | |||||
| Interest-bearing | 2,613,266 | 2,140,191 | 2,079,981 | ||||||||
| Total deposits | 3,268,949 | 2,790,966 | 2,666,624 | ||||||||
| Borrowings | 481,337 | 671,587 | 621,674 | ||||||||
| Subordinated debentures (net of $665, $812, $827 debt issuance costs) | 54,490 | 54,343 | 54,328 | ||||||||
| Other liabilities | 23,440 | 21,669 | 23,654 | ||||||||
| Total liabilities | 3,828,216 | 3,538,565 | 3,366,280 | ||||||||
| COMMITMENTS AND CONTINGENCIES | |||||||||||
| STOCKHOLDERS' EQUITY | |||||||||||
| Preferred stock | - | 11,250 | 11,250 | ||||||||
| Common stock | 374,287 | 374,287 | 374,287 | ||||||||
| Additional paid-in capital | 10,409 | 8,527 | 8,315 | ||||||||
| Retained earnings | 130,885 | 104,606 | 97,321 | ||||||||
| Treasury stock | (16,717 | ) | (16,717 | ) | (16,717 | ) | |||||
| Accumulated other comprehensive gain (loss) | 724 | (4,609 | ) | (3,310 | ) | ||||||
| Total stockholders' equity | 499,588 | 477,344 | 471,146 | ||||||||
| Total liabilities and stockholders' equity | $ | 4,327,804 | $ | 4,015,909 | $ | 3,837,426 | |||||
| CONNECTONE BANCORP, INC. AND SUBSIDIARIES | |||||||||||||||||
| CONSOLIDATED STATEMENTS OF INCOME | |||||||||||||||||
| (dollars in thousands, except for per share data) | |||||||||||||||||
| Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||
| 2016 | 2015 | 2016 | 2015 | ||||||||||||||
| Interest income | (unaudited) | ||||||||||||||||
| Interest and fees on loans | $ | 37,803 | $ | 32,276 | $ | 109,381 | $ | 91,807 | |||||||||
| Interest and dividends on investment securities: | |||||||||||||||||
| Taxable | 1,774 | 2,669 | 5,879 | 8,340 | |||||||||||||
| Tax-exempt | 988 | 901 | 2,867 | 2,666 | |||||||||||||
| Dividends | 352 | 297 | 1,074 | 797 | |||||||||||||
| Interest on federal funds sold and other short-term investments | 261 | 43 | 541 | 127 | |||||||||||||
| Total interest income | 41,178 | 36,186 | 119,742 | 103,737 | |||||||||||||
| Interest expense | |||||||||||||||||
| Deposits | 5,159 | 3,655 | 13,532 | 9,980 | |||||||||||||
| Borrowings | 2,995 | 2,804 | 9,472 | 7,060 | |||||||||||||
| Total interest expense | 8,154 | 6,459 | 23,004 | 17,040 | |||||||||||||
| Net interest income | 33,024 | 29,727 | 96,738 | 86,697 | |||||||||||||
| Provision for loan and lease losses | 6,750 | 4,175 | 13,500 | 7,550 | |||||||||||||
| Net interest income after provision for loan and lease losses | 26,274 | 25,552 | 83,238 | 79,147 | |||||||||||||
| Noninterest income | |||||||||||||||||
| Annuities and insurance commissions | 68 | 77 | 140 | 210 | |||||||||||||
| Income on bank owned life insurance | 615 | 388 | 1,843 | 1,162 | |||||||||||||
| Net gains on sale of loans held-for-sale | 56 | 63 | 147 | 276 | |||||||||||||
| Deposit, loan and other income | 706 | 1,224 | 1,984 | 2,145 | |||||||||||||
| Insurance recovery | - | - | - | 2,224 | |||||||||||||
| Net gains on sale of investment securities | 4,131 | 2,067 | 4,234 | 2,793 | |||||||||||||
| Total noninterest income | 5,576 | 3,819 | 8,348 | 8,810 | |||||||||||||
| Noninterest expenses | |||||||||||||||||
| Salaries and employee benefits | 7,791 | 6,905 | 23,143 | 20,480 | |||||||||||||
| Occupancy and equipment | 2,049 | 1,916 | 6,450 | 5,785 | |||||||||||||
| FDIC insurance | 745 | 535 | 1,955 | 1,535 | |||||||||||||
| Professional and consulting | 667 | 836 | 2,078 | 2,045 | |||||||||||||
| Marketing and advertising | 293 | 247 | 817 | 634 | |||||||||||||
| Data processing | 1,002 | 957 | 3,036 | 2,686 | |||||||||||||
| Loss on extinguishment of debt | - | - | - | 2,397 | |||||||||||||
| Amortization of core deposit intangible | 193 | 217 | 627 | 700 | |||||||||||||
| Other expenses | 1,811 | 1,688 | 5,150 | 4,643 | |||||||||||||
| Total noninterest expenses | 14,551 | 13,301 | 43,256 | 40,905 | |||||||||||||
| Income before income tax expense | 17,299 | 16,070 | 48,330 | 47,052 | |||||||||||||
| Income tax expense | 5,443 | 5,228 | 15,224 | 15,309 | |||||||||||||
| Net income | 11,856 | 10,842 | 33,106 | 31,743 | |||||||||||||
| Less: Preferred stock dividends | - | 28 | 22 | 84 | |||||||||||||
| Net income available to common stockholders | $ | 11,856 | $ | 10,814 | $ | 33,084 | $ | 31,659 | |||||||||
| Earnings per common share: | |||||||||||||||||
| Basic | $ | 0.39 | $ | 0.36 | $ | 1.10 | $ | 1.06 | |||||||||
| Diluted | $ | 0.39 | $ | 0.36 | $ | 1.09 | $ | 1.04 | |||||||||
| Weighted average common shares outstanding: | |||||||||||||||||
| Basic | 30,125,287 | 29,636,001 | 30,100,057 | 29,786,374 | |||||||||||||
| Diluted | 30,401,684 | 30,108,103 | 30,376,085 | 30,323,376 | |||||||||||||
| Dividends per common share | $ | 0.075 | $ | 0.075 | $ | 0.225 | $ | 0.225 | |||||||||
| ConnectOne's management believes that the supplemental financial information, including non-GAAP measures, provided below is useful to investors. The non-GAAP measures should not be viewed as a substitute for financial results determined in accordance with GAAP, and are not necessarily comparable to non-GAAP financial measures presented by other companies. | |||||||||||||||||||
| CONNECTONE BANCORP, INC. | |||||||||||||||||||
| SUPPLEMENTAL GAAP AND NON-GAAP FINANCIAL MEASURES | |||||||||||||||||||
| (dollars in thousands, except share data) | |||||||||||||||||||
| As of | |||||||||||||||||||
| Sept. 30, | June 30, | Mar. 31, | Dec. 31, | Sept. 30, | |||||||||||||||
| 2016 | 2016 | 2016 | 2015 | 2015 | |||||||||||||||
| Selected Financial Data | |||||||||||||||||||
| Total assets | $ | 4,327,804 | $ | 4,262,914 | $ | 4,091,000 | $ | 4,015,909 | $ | 3,837,426 | |||||||||
| Loans receivable: | |||||||||||||||||||
| Commercial | 644,430 | 630,425 | 601,708 | 570,116 | 569,605 | ||||||||||||||
| Commercial real estate-other | 1,139,641 | 1,104,214 | 1,087,388 | 1,085,615 | 1,052,982 | ||||||||||||||
| Commercial real estate-multifamily | 961,163 | 967,555 | 940,913 | 881,081 | 820,732 | ||||||||||||||
| Commercial construction | 471,109 | 443,277 | 402,594 | 328,838 | 283,623 | ||||||||||||||
| Residential | 229,401 | 230,497 | 231,319 | 233,690 | 225,158 | ||||||||||||||
| Consumer | 2,879 | 1,976 | 1,851 | 2,454 | 3,569 | ||||||||||||||
| Gross loans | 3,448,623 | 3,377,944 | 3,265,773 | 3,101,794 | 2,955,669 | ||||||||||||||
| Unearned net origination fees | (3,147 | ) | (2,324 | ) | (1,960 | ) | (2,787 | ) | (2,288 | ) | |||||||||
| Loans receivable | 3,445,476 | 3,375,620 | 3,263,813 | 3,099,007 | 2,953,381 | ||||||||||||||
| Loans held-for-sale | 15,112 | 360 | - | - | 990 | ||||||||||||||
| Total loans | 3,460,588 | 3,375,980 | 3,263,813 | 3,099,007 | 2,954,371 | ||||||||||||||
| Securities available-for-sale | 338,459 | 208,266 | 191,331 | 195,770 | 224,214 | ||||||||||||||
| Securities held-to-maturity | - | 214,718 | 219,373 | 224,056 | 227,221 | ||||||||||||||
| Goodwill and other intangible assets | 149,190 | 149,383 | 149,600 | 149,817 | 150,034 | ||||||||||||||
| Deposits: | |||||||||||||||||||
| Noninterest-bearing | 655,683 | 648,664 | 614,507 | 650,776 | 586,643 | ||||||||||||||
| Interest-bearing | 531,500 | 523,742 | 517,810 | 490,379 | 465,552 | ||||||||||||||
| Savings | 207,717 | 210,040 | 219,865 | 216,399 | 220,199 | ||||||||||||||
| Money market | 866,710 | 866,643 | 678,222 | 658,695 | 611,743 | ||||||||||||||
| Time deposits | 1,007,339 | 951,904 | 862,667 | 774,717 | 782,487 | ||||||||||||||
| Total deposits | 3,268,949 | 3,200,993 | 2,893,071 | 2,790,966 | 2,666,624 | ||||||||||||||
| Borrowings | 481,337 | 496,414 | 646,501 | 671,587 | 621,674 | ||||||||||||||
| Subordinated debentures (net of issuance costs) | 54,490 | 54,441 | 54,392 | 54,343 | 54,328 | ||||||||||||||
| Total stockholders' equity | 499,588 | 484,414 | 474,727 | 477,344 | 471,146 | ||||||||||||||
| Quarterly Average Balances | |||||||||||||||||||
| Total assets | $ | 4,344,795 | $ | 4,212,307 | $ | 4,034,375 | $ | 3,891,885 | $ | 3,729,503 | |||||||||
| Loans receivable: | |||||||||||||||||||
| Commercial | 632,892 | 626,902 | 585,773 | 579,512 | 567,737 | ||||||||||||||
| Commercial real estate (including multifamily) | 2,081,741 | 2,056,263 | 2,005,872 | 1,919,263 | 1,811,745 | ||||||||||||||
| Commercial construction | 462,399 | 418,769 | 361,108 | 313,223 | 255,627 | ||||||||||||||
| Residential | 229,953 | 231,553 | 236,404 | 232,022 | 227,051 | ||||||||||||||
| Consumer | 2,771 | 2,865 | 2,670 | 3,269 | 3,013 | ||||||||||||||
| Gross loans | 3,409,756 | 3,336,352 | 3,191,827 | 3,047,289 | 2,865,173 | ||||||||||||||
| Unearned net origination fees | (2,956 | ) | (2,295 | ) | (2,397 | ) | (2,706 | ) | (2,102 | ) | |||||||||
| Loans receivable | 3,406,800 | 3,334,057 | 3,189,430 | 3,044,583 | 2,863,071 | ||||||||||||||
| Securities available-for-sale | 263,656 | 200,050 | 222,776 | 219,927 | 260,211 | ||||||||||||||
| Securities held-to-maturity | 143,146 | 218,220 | 194,474 | 225,875 | 229,483 | ||||||||||||||
| Goodwill and other intangible assets | 149,317 | 149,525 | 149,741 | 149,959 | 150,178 | ||||||||||||||
| Deposits: | |||||||||||||||||||
| Noninterest-bearing | 640,323 | 581,743 | 609,312 | 608,227 | 560,129 | ||||||||||||||
| Interest-bearing | 553,401 | 528,954 | 503,896 | 476,237 | 480,685 | ||||||||||||||
| Savings | 211,162 | 215,267 | 215,491 | 216,149 | 220,481 | ||||||||||||||
| Money market | 872,937 | 791,845 | 656,557 | 636,180 | 582,238 | ||||||||||||||
| Time deposits | 1,007,530 | 889,561 | 807,801 | 783,068 | 787,262 | ||||||||||||||
| Total deposits | 3,285,353 | 3,007,370 | 2,793,057 | 2,719,861 | 2,630,795 | ||||||||||||||
| Borrowings | 488,015 | 639,054 | 684,469 | 621,615 | 544,774 | ||||||||||||||
| Subordinated debentures | 55,155 | 55,155 | 55,155 | 55,155 | 55,155 | ||||||||||||||
| Total stockholders' equity | 495,141 | 483,519 | 482,503 | 478,919 | 471,682 | ||||||||||||||
| Three Months Ended | |||||||||||||||||||
| Sept. 30, | June 30, | Mar. 31, | Dec. 31, | Sept. 30, | |||||||||||||||
| GAAP Earnings Data | 2016 | 2016 | 2016 | 2015 | 2015 | ||||||||||||||
| Net interest income | $ | 33,024 | $ | 32,394 | $ | 31,320 | $ | 30,456 | $ | 29,727 | |||||||||
| Provision for loan and lease losses | 6,750 | 3,750 | 3,000 | 5,055 | 4,175 | ||||||||||||||
| Net interest income after provision for loan and lease losses | 26,274 | 28,644 | 28,320 | 25,401 | 25,552 | ||||||||||||||
| Noninterest income | |||||||||||||||||||
| Annuity and insurance commissions | 68 | 32 | 40 | 32 | 77 | ||||||||||||||
| Bank-owned life insurance | 615 | 616 | 612 | 620 | 388 | ||||||||||||||
| Net gains on sale of loans held-for-sale | 56 | 56 | 35 | 51 | 63 | ||||||||||||||
| Deposit, loan and other income | 706 | 763 | 515 | 522 | 1,224 | ||||||||||||||
| Net gains on sale of investment securities | 4,131 | 103 | - | 1,138 | 2,067 | ||||||||||||||
| Total noninterest income | 5,576 | 1,570 | 1,202 | 2,363 | 3,819 | ||||||||||||||
| Noninterest expenses | |||||||||||||||||||
| Salaries and employee benefits | 7,791 | 7,753 | 7,599 | 7,205 | 6,905 | ||||||||||||||
| Occupancy and equipment | 2,049 | 2,154 | 2,247 | 1,802 | 1,916 | ||||||||||||||
| FDIC insurance | 745 | 615 | 595 | 575 | 535 | ||||||||||||||
| Professional and consulting | 667 | 700 | 711 | 906 | 836 | ||||||||||||||
| Marketing and advertising | 293 | 250 | 184 | 213 | 247 | ||||||||||||||
| Data processing | 1,002 | 1,010 | 1,024 | 1,017 | 957 | ||||||||||||||
| Amortization of core deposit intangible | 193 | 217 | 217 | 217 | 217 | ||||||||||||||
| Other expenses | 1,811 | 1,653 | 1,776 | 1,644 | 1,688 | ||||||||||||||
| Total noninterest expenses | 14,551 | 14,352 | 14,353 | 13,579 | 13,301 | ||||||||||||||
| Income before income tax expense | 17,299 | 15,862 | 15,169 | 14,185 | 16,070 | ||||||||||||||
| Income tax expense | 5,443 | 5,003 | 4,778 | 4,617 | 5,228 | ||||||||||||||
| Net income (GAAP) | $ | 11,856 | $ | 10,859 | $ | 10,391 | $ | 9,568 | $ | 10,842 | |||||||||
| Three Months Ended | |||||||||||||||||||
| Sept. 30, | June 30, | Mar. 31, | Dec. 31, | Sept. 30, | |||||||||||||||
| 2016 | 2016 | 2016 | 2015 | 2015 | |||||||||||||||
| Net income (GAAP) | 11,856 | 10,859 | 10,391 | 9,568 | 10,842 | ||||||||||||||
| Less: preferred dividends | - | - | 22 | 28 | 28 | ||||||||||||||
| Net income available to common stockholders (GAAP) | 11,856 | 10,859 | 10,369 | 9,540 | 10,814 | ||||||||||||||
| Reconciliation of GAAP Earnings to Operating Earnings | |||||||||||||||||||
| Net gains on sales of securities | $ | (4,131 | ) | $ | (103 | ) | $ | - | $ | (1,138 | ) | $ | (2,067 | ) | |||||
| Partial settlements of pension obligation | 69 | 87 | 103 | 106 | 168 | ||||||||||||||
| Amortization of intangible assets | 193 | 217 | 217 | 217 | 217 | ||||||||||||||
| Provision related to maturity and extension of acquired portfolio loans | 220 | 229 | 397 | 512 | 590 | ||||||||||||||
| Provision related to taxi cab medallion loans | 5,000 | 1,750 | 1,487 | 2,500 | 2,000 | ||||||||||||||
| Provision for pending disposition of Union Center operations bldg. | - | - | - | 1,304 | - | ||||||||||||||
| Accretion of purchase accounting fair value marks | (1,077 | ) | (1,277 | ) | (1,367 | ) | (1,416 | ) | (1,340 | ) | |||||||||
| Non-core items | 274 | 903 | 837 | 2,085 | (432 | ) | |||||||||||||
| Income tax (expense) benefit | 99 | 326 | 301 | 751 | (156 | ) | |||||||||||||
| Non-core items, after taxes (36%) | 175 | 577 | 536 | 1,334 | (276 | ) | |||||||||||||
| Core earnings available to common stockholders (non-GAAP) | $ | 12,031 | $ | 11,436 | $ | 10,905 | $ | 10,874 | $ | 10,538 | |||||||||
| Weighted average diluted shares outstanding | 30,401,684 | 30,340,376 | 30,257,676 | 30,310,905 | 30,335,571 | ||||||||||||||
| Diluted EPS (GAAP) | $ | 0.39 | $ | 0.36 | $ | 0.34 | $ | 0.31 | $ | 0.36 | |||||||||
| Core Diluted EPS (Non-GAAP) (1) | 0.40 | 0.38 | 0.36 | 0.36 | 0.35 | ||||||||||||||
| Return on Assets Measures | |||||||||||||||||||
| Core earnings available to common stockholders (non-GAAP) | $ | 12,031 | $ | 11,436 | $ | 10,905 | $ | 10,874 | $ | 10,538 | |||||||||
| Add: preferred dividends | - | - | 22 | 28 | 28 | ||||||||||||||
| Core net income (non-GAAP) | $ | 12,031 | $ | 11,436 | $ | 10,927 | $ | 10,902 | $ | 10,566 | |||||||||
| Average assets | $ | 4,344,795 | $ | 4,212,307 | $ | 4,034,375 | $ | 3,891,885 | $ | 3,729,503 | |||||||||
| Less: average intangible assets | (149,317 | ) | (149,525 | ) | (149,741 | ) | (149,959 | ) | (150,178 | ) | |||||||||
| Average tangible assets | $ | 4,195,478 | $ | 4,062,782 | $ | 3,884,634 | $ | 3,741,926 | $ | 3,579,325 | |||||||||
| Return on avg. assets (GAAP) | 1.09 | % | 1.04 | % | 1.04 | % | 0.98 | % | 1.15 | % | |||||||||
| Core return on avg. assets (Non-GAAP) (2) | 1.10 | % | 1.09 | % | 1.09 | % | 1.11 | % | 1.12 | % | |||||||||
| Return on avg. tangible assets (Non-GAAP) (3) | 1.14 | % | 1.09 | % | 1.09 | % | 1.03 | % | 1.22 | % | |||||||||
| Core return on avg. tangible assets (Non-GAAP) (4) | 1.14 | % | 1.13 | % | 1.13 | % | 1.16 | % | 1.17 | % | |||||||||
| _____ | |||||||||||||||||||
| (1) Represents core earnings available to common stockholders divided by weighted average diluted shares outstanding. | |||||||||||||||||||
| (2) Core net income divided by average assets. | |||||||||||||||||||
| (3) Net income excluding amortization of intangible assets divided by average tangible assets. | |||||||||||||||||||
| (4) Core net income divided by average tangible assets. | |||||||||||||||||||
| Three Months Ended | |||||||||||||||||||
| Sept. 30, | June 30, | Mar. 31, | Dec. 31, | Sept. 30, | |||||||||||||||
| 2016 | 2016 | 2016 | 2015 | 2015 | |||||||||||||||
| Return on Equity Measures | |||||||||||||||||||
| Core earnings available to common stockholders | $ | 12,031 | $ | 11,436 | $ | 10,905 | $ | 10,874 | $ | 10,538 | |||||||||
| Average common equity | $ | 495,141 | $ | 483,519 | $ | 473,849 | $ | 467,669 | $ | 460,432 | |||||||||
| Less: average intangible assets | (149,317 | ) | (149,525 | ) | (149,741 | ) | (149,959 | ) | (150,178 | ) | |||||||||
| Average tangible common equity | $ | 345,824 | $ | 333,994 | $ | 324,108 | $ | 317,710 | $ | 310,254 | |||||||||
| Return on avg. common equity (GAAP) | 9.53 | % | 9.03 | % | 8.80 | % | 8.09 | % | 9.32 | % | |||||||||
| Core return on avg. common equity (non-GAAP) (5) | 9.67 | % | 9.51 | % | 9.26 | % | 9.23 | % | 9.08 | % | |||||||||
| Return on avg. tangible common equity (non-GAAP) (6) | 13.77 | % | 13.23 | % | 13.03 | % | 12.07 | % | 13.99 | % | |||||||||
| Core return on avg. tangible common equity (non-GAAP) (7) | 13.84 | % | 13.77 | % | 13.53 | % | 13.58 | % | 13.47 | % | |||||||||
| Efficiency Measures | |||||||||||||||||||
| Total noninterest expenses | $ | 14,551 | $ | 14,352 | $ | 14,353 | $ | 13,579 | $ | 13,301 | |||||||||
| Partial settlements of pension obligation | (69 | ) | (87 | ) | (103 | ) | (106 | ) | (168 | ) | |||||||||
| Foreclosed property expense | (37 | ) | 10 | (167 | ) | (387 | ) | (121 | ) | ||||||||||
| Amortization of intangible assets and fair value marks | (193 | ) | (217 | ) | (217 | ) | (217 | ) | (217 | ) | |||||||||
| Operating noninterest expense | $ | 14,252 | $ | 14,058 | $ | 13,866 | $ | 12,869 | $ | 12,795 | |||||||||
| Net interest income (FTE) | $ | 33,762 | $ | 33,112 | $ | 31,985 | $ | 31,102 | $ | 30,382 | |||||||||
| Impact of purchase accounting fair value marks | (1,045 | ) | (1,245 | ) | (1,335 | ) | (1,384 | ) | (1,314 | ) | |||||||||
| Noninterest income | 5,576 | 1,570 | 1,202 | 2,363 | 3,819 | ||||||||||||||
| Net gains on sales of securities | (4,131 | ) | (103 | ) | - | (1,138 | ) | (2,067 | ) | ||||||||||
| Operating revenue | $ | 34,162 | $ | 33,334 | $ | 31,852 | $ | 30,943 | $ | 30,820 | |||||||||
| Operating efficiency ratio (non-GAAP) (8) | 41.7 | % | 42.2 | % | 43.5 | % | 41.6 | % | 41.5 | % | |||||||||
| Net Interest Margin | |||||||||||||||||||
| Average interest-earning assets | $ | 4,041,020 | $ | 3,912,802 | $ | 3,728,958 | $ | 3,582,408 | $ | 3,441,151 | |||||||||
| Net interest income (FTE) | $ | 33,762 | $ | 33,112 | $ | 31,985 | $ | 31,102 | $ | 30,382 | |||||||||
| Impact of purchase accounting fair value marks | (1,045 | ) | (1,245 | ) | (1,335 | ) | (1,384 | ) | (1,314 | ) | |||||||||
| Adjusted net interest income | $ | 32,717 | $ | 31,867 | $ | 30,650 | $ | 29,718 | $ | 29,068 | |||||||||
| Net interest margin (GAAP) | 3.32 | % | 3.40 | % | 3.45 | % | 3.44 | % | 3.50 | % | |||||||||
| Adjusted net interest margin (non-GAAP) (9) | 3.22 | % | 3.28 | % | 3.31 | % | 3.29 | % | 3.35 | % | |||||||||
| _____ | |||||||||||||||||||
| (5) Core earnings available to common stockholders divided by average common equity. | |||||||||||||||||||
| (6) Earnings available to common stockholders excluding amortization of intangibles divided by average tangible common equity. | |||||||||||||||||||
| (7) Core earnings available to common stockholders divided by average tangible common equity. | |||||||||||||||||||
| (8) Operating noninterest expense divided by operating revenue. | |||||||||||||||||||
| (9) Adjusted net interest income divided by average interest-earning assets. | |||||||||||||||||||
| As of | |||||||||||||||||||
| Sept. 30, | June 30, | Mar. 31, | Dec. 31, | Sept. 30, | |||||||||||||||
| (dollars in thousands, except share data) | 2016 | 2016 | 2016 | 2015 | 2015 | ||||||||||||||
| Capital Ratios and Book Value per Share | |||||||||||||||||||
| Common equity | $ | 499,588 | $ | 484,414 | $ | 474,727 | $ | 466,094 | $ | 459,896 | |||||||||
| Less: intangible assets | (149,190 | ) | (149,383 | ) | (149,600 | ) | (149,817 | ) | (150,034 | ) | |||||||||
| Tangible common equity | $ | 350,398 | $ | 335,031 | $ | 325,127 | $ | 316,277 | $ | 309,862 | |||||||||
| Total assets | $ | 4,327,804 | $ | 4,262,914 | $ | 4,091,000 | $ | 4,015,909 | $ | 3,837,426 | |||||||||
| Less: intangible assets | (149,190 | ) | (149,383 | ) | (149,600 | ) | (149,817 | ) | (150,034 | ) | |||||||||
| Tangible assets | $ | 4,178,614 | $ | 4,113,531 | $ | 3,941,400 | $ | 3,866,092 | $ | 3,687,392 | |||||||||
| Common shares outstanding | 30,197,318 | 30,197,318 | 30,163,078 | 30,085,663 | 30,197,789 | ||||||||||||||
| Common equity ratio (GAAP) | 11.54 | % | 11.36 | % | 11.60 | % | 11.61 | % | 11.98 | % | |||||||||
| Tangible common equity ratio (non-GAAP) (10) | 8.39 | % | 8.14 | % | 8.25 | % | 8.18 | % | 8.40 | % | |||||||||
| Regulatory capital ratios (Bancorp): | |||||||||||||||||||
| Leverage ratio | 8.49 | % | 8.52 | % | 8.66 | % | 9.07 | % | 9.26 | % | |||||||||
| Common equity Tier 1 risk-based ratio | 9.25 | % | 9.10 | % | 9.05 | % | 9.14 | % | 9.33 | % | |||||||||
| Risk-based Tier 1 capital ratio | 9.38 | % | 9.23 | % | 9.19 | % | 9.61 | % | 9.82 | % | |||||||||
| Risk-based total capital ratio | 11.69 | % | 11.44 | % | 11.35 | % | 11.77 | % | 11.94 | % | |||||||||
| Regulatory capital ratios (Bank): | |||||||||||||||||||
| Leverage ratio | 9.57 | % | 9.62 | % | 9.83 | % | 9.96 | % | 10.22 | % | |||||||||
| Common equity Tier 1 risk-based ratio | 10.58 | % | 10.43 | % | 10.44 | % | 10.55 | % | 10.83 | % | |||||||||
| Risk-based Tier 1 capital ratio | 10.58 | % | 10.43 | % | 10.44 | % | 10.55 | % | 10.83 | % | |||||||||
| Risk-based total capital ratio | 11.57 | % | 11.30 | % | 11.23 | % | 11.31 | % | 11.47 | % | |||||||||
| Book value per share (GAAP) | $ | 16.54 | $ | 16.04 | $ | 15.74 | $ | 15.49 | $ | 15.23 | |||||||||
| Tangible book value per share (non-GAAP) (11) | 11.60 | 11.09 | 10.78 | 10.51 | 10.26 | ||||||||||||||
| Three Months Ended | |||||||||||||||||||
| Sept. 30, | June 30, | Mar. 31, | Dec. 31, | Sept. 30, | |||||||||||||||
| 2016 | 2016 | 2016 | 2015 | 2015 | |||||||||||||||
| NCO Detail | |||||||||||||||||||
| Net loan charge-offs: | |||||||||||||||||||
| Charge-offs | $ | 1,910 | $ | 77 | $ | 512 | $ | 18 | $ | 519 | |||||||||
| Recoveries | (12 | ) | (16 | ) | (15 | ) | (2 | ) | (342 | ) | |||||||||
| Net loan charge-offs | $ | 1,898 | $ | 61 | $ | 497 | $ | 16 | $ | 177 | |||||||||
| as a % of average total loans (annualized) | 0.22 | % | 0.01 | % | 0.06 | % | 0.00 | % | 0.02 | % | |||||||||
| Asset Quality | |||||||||||||||||||
| Nonaccrual loans | $ | 11,493 | $ | 21,911 | $ | 21,450 | $ | 20,737 | $ | 12,888 | |||||||||
| Other real estate owned | 626 | 2,029 | 1,696 | 2,549 | 3,244 | ||||||||||||||
| Total nonperforming assets | $ | 12,119 | $ | 23,940 | $ | 23,146 | $ | 23,286 | $ | 16,132 | |||||||||
| Performing troubled debt restructurings | $ | 105,338 | $ | 97,831 | $ | 95,122 | $ | 85,925 | $ | 77,882 | |||||||||
| Loans past due 90 days and still accruing (non-PCI) | $ | - | $ | - | $ | - | $ | - | $ | 268 | |||||||||
| Nonaccrual loans as a % of loans receivable | 0.33 | % | 0.65 | % | 0.66 | % | 0.67 | % | 0.44 | % | |||||||||
| Nonperforming assets as a % of total assets | 0.28 | % | 0.56 | % | 0.57 | % | 0.58 | % | 0.42 | % | |||||||||
| Allowance for loan losses as a % of nonaccrual loans | 327.3 | % | 149.5 | % | 135.5 | % | 128.1 | % | 167.1 | % | |||||||||
| Loans receivable | $ | 3,445,476 | $ | 3,375,620 | $ | 3,263,813 | $ | 3,099,007 | $ | 2,953,381 | |||||||||
| Acquired loans | (736,894 | ) | (799,851 | ) | (825,047 | ) | (866,878 | ) | (923,210 | ) | |||||||||
| Loans receivable, excluding acquired loans | $ | 2,708,582 | $ | 2,575,769 | $ | 2,438,766 | $ | 2,232,129 | $ | 2,030,171 | |||||||||
| Allowance for loan losses | $ | 37,615 | $ | 32,763 | $ | 29,074 | $ | 26,572 | $ | 21,533 | |||||||||
| Accretable credit risk discount on acquired loans | 10,408 | 11,198 | 12,101 | 12,955 | 13,893 | ||||||||||||||
| Total allowance for loan losses and accretable credit risk discount on acquired loans | $ | 48,023 | $ | 43,961 | $ | 41,175 | $ | 39,527 | $ | 35,426 | |||||||||
| Allowance for loan losses as a % of loans receivable | 1.09 | % | 0.97 | % | 0.89 | % | 0.86 | % | 0.73 | % | |||||||||
| Allowance for loan losses as a % of loans receivable, excluding acquired loans | 1.39 | % | 1.27 | % | 1.19 | % | 1.19 | % | 1.06 | % | |||||||||
| Allowance for loan losses and accretable credit risk discount on loans as a % of loans receivable | 1.39 | % | 1.30 | % | 1.26 | % | 1.28 | % | 1.20 | % | |||||||||
| _____ | |||||||||||||||||||
| (10) Tangible common equity divided by tangible assets. | |||||||||||||||||||
| (11) Tangible common equity divided by common shares outstanding at period-end. | |||||||||||||||||||
| CONNECTONE BANCORP, INC. | ||||||||||||||||||||||||||||||||||||
| NET INTEREST MARGIN ANALYSIS | ||||||||||||||||||||||||||||||||||||
| (dollars in thousands) | ||||||||||||||||||||||||||||||||||||
| For the Three Months Ended | ||||||||||||||||||||||||||||||||||||
| September 30, 2016 | June 30, 2016 | September 30, 2015 | ||||||||||||||||||||||||||||||||||
| Average | (7 | ) | Average | (7 | ) | Average | (7 | ) | ||||||||||||||||||||||||||||
| Interest-earning assets: | Balance | Interest | Rate | Balance | Interest | Rate | Balance | Interest | Rate | |||||||||||||||||||||||||||
| Investment securities (1) (2) | $ | 406,802 | $ | 3,293 | 3.22 | % | $ | 418,270 | $ | 3,497 | 3.36 | % | $ | 483,677 | $ | 4,055 | 3.33 | % | ||||||||||||||||||
| Loans receivable and loans held-for-sale (2) (3) (4) | 3,407,278 | 38,010 | 4.44 | 3,334,057 | 36,743 | 4.43 | 2,863,708 | 32,446 | 4.50 | |||||||||||||||||||||||||||
| Federal funds sold and interest- | ||||||||||||||||||||||||||||||||||||
| bearing deposits with banks | 202,106 | 261 | 0.51 | 128,994 | 146 | 0.46 | 66,867 | 43 | 0.26 | |||||||||||||||||||||||||||
| Restricted investment in bank stock | 24,834 | 352 | 5.64 | 31,481 | 370 | 4.73 | 26,899 | 297 | 4.38 | |||||||||||||||||||||||||||
| Total interest-earning assets | 4,041,020 | 41,916 | 4.13 | 3,912,802 | 40,756 | 4.19 | 3,441,151 | 36,841 | 4.25 | |||||||||||||||||||||||||||
| Allowance for loan losses | (34,052 | ) | (29,924 | ) | (18,157 | ) | ||||||||||||||||||||||||||||||
| Noninterest-earning assets | 337,828 | 329,429 | 306,509 | |||||||||||||||||||||||||||||||||
| Total assets | $ | 4,344,796 | $ | 4,212,307 | $ | 3,729,503 | ||||||||||||||||||||||||||||||
| Interest-bearing liabilities: | ||||||||||||||||||||||||||||||||||||
| Money market deposits | $ | 872,937 | $ | 1,211 | 0.55 | $ | 791,845 | $ | 992 | 0.50 | $ | 710,767 | $ | 794 | 0.44 | |||||||||||||||||||||
| Savings deposits | 211,162 | 158 | 0.30 | 215,267 | 156 | 0.29 | 220,481 | 146 | 0.26 | |||||||||||||||||||||||||||
| Time deposits | 1,007,530 | 3,323 | 1.31 | 889,561 | 2,857 | 1.29 | 787,262 | 2,391 | 1.20 | |||||||||||||||||||||||||||
| Other interest-bearing deposits | 553,401 | 467 | 0.34 | 528,954 | 429 | 0.33 | 352,156 | 324 | 0.37 | |||||||||||||||||||||||||||
| Total interest-bearing deposits | 2,645,030 | 5,159 | 0.78 | 2,425,627 | 4,434 | 0.74 | 2,070,666 | 3,655 | 0.70 | |||||||||||||||||||||||||||
| Borrowings | 488,015 | 2,139 | 1.74 | 639,054 | 2,355 | 1.48 | 544,774 | 1,944 | 1.42 | |||||||||||||||||||||||||||
| Subordinated debentures (8) | 55,155 | 814 | 5.87 | 55,155 | 812 | 5.92 | 55,155 | 816 | 5.87 | |||||||||||||||||||||||||||
| Capital lease obligation | 2,814 | 42 | 5.94 | 2,844 | 43 | 6.08 | 2,933 | 44 | 5.95 | |||||||||||||||||||||||||||
| Total interest-bearing liabilities | 3,191,014 | 8,154 | 1.02 | 3,122,680 | 7,644 | 0.98 | 2,673,528 | 6,459 | 0.96 | |||||||||||||||||||||||||||
| Demand deposits | 640,323 | 581,743 | 560,129 | |||||||||||||||||||||||||||||||||
| Other liabilities | 18,318 | 24,365 | 24,164 | |||||||||||||||||||||||||||||||||
| Total noninterest-bearing liabilities | 658,642 | 606,108 | 584,293 | |||||||||||||||||||||||||||||||||
| Stockholders' equity | 495,141 | 483,519 | 471,682 | |||||||||||||||||||||||||||||||||
| Total liabilities and stockholders' equity | $ | 4,344,796 | $ | 4,212,307 | $ | 3,729,503 | ||||||||||||||||||||||||||||||
| Net interest income (tax equivalent basis) | 33,762 | 33,112 | 30,382 | |||||||||||||||||||||||||||||||||
| Net interest spread (5) | 3.11 | % | 3.21 | % | 3.29 | % | ||||||||||||||||||||||||||||||
| Net interest margin (6) | 3.32 | % | 3.40 | % | 3.50 | % | ||||||||||||||||||||||||||||||
| Tax equivalent adjustment | (738 | ) | (718 | ) | (655 | ) | ||||||||||||||||||||||||||||||
| Net interest income | $ | 33,024 | $ | 32,394 | $ | 29,727 | ||||||||||||||||||||||||||||||
| (1) Average balances are calculated on amortized cost. | ||||||||||||||||||||||||||||||||||||
| (2) Interest income is presented on a tax equivalent basis using 35% federal tax rate. | ||||||||||||||||||||||||||||||||||||
| (3) Includes loan fee income. | ||||||||||||||||||||||||||||||||||||
| (4) Loans include nonaccrual loans. | ||||||||||||||||||||||||||||||||||||
| (5) Represents difference between the average yield on interest-earning assets and the average cost of interest-bearing liabilities and is presented on a tax equivalent basis. | ||||||||||||||||||||||||||||||||||||
| (6) Represents net interest income on a tax equivalent basis divided by average total interest-earning assets. | ||||||||||||||||||||||||||||||||||||
| (7) Rates are annualized. | ||||||||||||||||||||||||||||||||||||
| (8) Excluding debt issuance costs of $698, $746 and $ - for the three months ended September 30, 2016, June 30, 2016 and September 30, 2015, respectively. | ||||||||||||||||||||||||||||||||||||