ENGLEWOOD CLIFFS, N.J., Jan. 26, 2017 (GLOBE NEWSWIRE) -- ConnectOne Bancorp, Inc. (Nasdaq:CNOB) (the “Company” or “ConnectOne”), parent company of ConnectOne Bank (the “Bank”), today reported a net loss available to common stockholders of $2.0 million, or $(0.07) per diluted share for the fourth quarter of 2016. The loss was due to a charge taken against the Bank’s taxi medallion portfolio, as anticipated in the Company’s previously filed Current Report on Form 8-K of December 13, 2016. Net income available to common stockholders for the third quarter of 2016 was $11.9 million, or $0.39 per diluted share, and for the fourth quarter of 2015, was $9.6 million, or $0.31 per diluted share. Net income available to common stockholders was $31.1 million, or $1.01 per diluted share for the full-year 2016 compared with $41.2 million, or $1.36 per diluted share, for the full-year 2015.
Highlights
- Loan origination accelerated. Gross loan fundings were $373.7 million for the 2016 fourth quarter, compared with $228.7 million for the sequential quarter. Net loan growth (fundings less paydowns and payoffs) was $130.3 million for the 2016 fourth quarter and $84.6 million for the sequential quarter. The loan pipeline remains solid heading into 2017.
- Total deposits grew on a sequential quarter basis by an annualized 9.2%, reflecting annualized growth of 23.9% in noninterest-bearing deposits. The loan to deposit ratio was 106.3% at quarter-end, down from 111.0% one year ago.
- Already sound asset quality metrics improved even further. The nonaccrual loan ratio, excluding taxi loans, declined during the 2016 fourth quarter to 0.16% from 0.23% in the sequential prior quarter, while the total of nonperforming loans and TDRs (including the taxi medallion loans) declined by 31% to $81.0 million at year-end from $117.5 million at September 30, 2016, largely a result of the aforementioned charge-off of taxi medallion loans.
- During the quarter, we successfully completed a secondary offering of common stock at $24.25 per share, resulting in net proceeds of approximately $38.1 million. The offering resulted in higher capital ratios to support additional growth opportunities and increased tangible book value per share.
- Tangible book value per share increased by 13.8% over the course of 2016 to $11.96 per share at December 31, 2016 from $10.51 at year-end 2015. The Company’s tangible common equity ratio increased to 8.93% from 8.18% a year ago.
- We transferred our entire taxi medallion portfolio to the loans held-for-sale category from the loans held-for-investment portfolio. It is management’s intention to sell the entire taxi portfolio, although no specific transaction has been agreed to or is pending at the present time.
- Consistent with the Company’s recent 8-K disclosure and in conjunction with the aforementioned transfer of the taxi-medallion loans to held-for sale, the valuation of impaired loans secured by taxi medallions was reduced at December 31, 2016. The transfer of the loans at the lower of cost or market resulted in the charge-off of all specific reserves, $36.5 million, related to the impaired loans at the time of transfer. Such charge-offs will provide a current tax benefit in the 2016 tax year at the present 35% statutory federal tax rate.
Frank Sorrentino, ConnectOne’s Chairman and CEO stated, “ConnectOne had another successful year in 2016 and we remain well positioned for increased long-term growth and profitability. Total shareholder return for the year, measured by stock price appreciation and cash dividends, was a healthy 40.4%, reflecting both financial sector and company specific performance. We ended the year with significantly higher capital ratios and tangible book value per share, a lower loan-to-deposit ratio, a widening net interest margin, a robust pipeline of business activity and best-in-class efficiency. We enter 2017 with an enhanced balance sheet and remain committed to executing against key operating objectives including maintaining strong organic loan and deposit growth, delivering accelerated and sustainable earnings growth, improving return on equity, and building and refining our infrastructure. I want to thank our customers, our board of directors, the executive management team, our entire staff, and, most importantly, our shareholders for continuing to support us throughout 2016 and making ConnectOne, truly, a better place to be.”
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.
Fourth quarter 2016 results reflect the following non-core items: $1.0 million of income resulting from accretion of purchase accounting fair value marks; $0.1 million in additional loan loss provision related to the maturity and extension of acquired portfolio loans; $24.0 million in additional provision associated with the Bank’s New York City taxi medallion loan portfolio; $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 $12.3 million, or $0.40 per diluted share, for the fourth quarter of 2016, $12.0 million, or $0.40 per diluted share, for the third quarter of 2016, and $10.9 million, or $0.36 per diluted share, for the fourth quarter of 2015.
Fully taxable equivalent net interest income for the fourth quarter of 2016 was $34.1 million, an increase of $0.4 million, or 1.1%, from the third quarter of 2016, resulting from a 4 basis-point widening of the net interest margin to 3.36% from 3.32%, and partially offset by slightly lower average interest-earning assets, reflecting securities sales at the end of the third quarter. Included in net interest income was accretion and amortization of purchase accounting adjustments of $1.0 million during the fourth quarter of 2016 and the third quarter of 2016. Excluding these purchase accounting adjustments, the adjusted net interest margin was 3.27% in the fourth quarter of 2016, widening by 5 basis-points from the third quarter of 2016 adjusted net interest margin of 3.22%. The increase in the adjusted net interest margin was primarily attributable to an improved mix of interest-earning assets resulting from the above-mentioned securities sales.
Fully taxable equivalent net interest income for the fourth quarter of 2016 increased by $3.0 million, or 9.7%, from the same quarter of 2015. This was a result of a 12.7% increase in average interest-earning assets due to significant organic loan growth, partially offset by an 8 basis-point contraction of the net interest margin to 3.36% from 3.44%. Included in net interest income was accretion and amortization of purchase accounting adjustments of $1.0 million during the fourth quarter of 2016 and $1.4 million in the same quarter of 2015. Excluding these purchase accounting adjustments, the adjusted net interest margin was 3.27% in the fourth quarter of 2016, contracting by 2 basis-points from the fourth quarter of 2015 adjusted net interest margin of 3.29%. The reduction in the adjusted net interest margin was primarily attributable to higher level of cash balances held at the Federal Reserve Bank and an increase in rates paid on deposits.
Noninterest income totaled $1.6 million in the fourth quarter of 2016, $5.6 million in the third quarter of 2016 and $2.4 million in the fourth quarter of 2015. There were no net securities gains during the fourth quarter of 2016, and net securities gains were $4.1 million for the third quarter of 2016 and $1.1 million for the fourth quarter of 2015. Excluding the securities gains, noninterest income increased approximately $0.1 million from the prior sequential quarter and $0.3 million from the prior year fourth quarter. The increase from the prior sequential quarter was primarily attributable to increases in income from BOLI. The increase from the prior year fourth quarter was primarily attributable to increase in deposit, loan and other income of $0.2 million and $0.1 million in BOLI income. 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 $15.3 million for the fourth quarter of 2016, up approximately $0.7 million from $14.6 million for the third quarter of 2016. The increase was primarily attributable to increases in salaries and employee benefits expense ($0.1 million), FDIC insurance premiums ($0.2 million), professional and consulting expenses ($0.2 million) and data processing ($0.1 million). Noninterest expenses were up $1.7 million for the fourth quarter of 2016 when compared to $13.6 million for the fourth quarter of 2015. The increase was largely attributable to increases in salaries and employee benefits ($0.7 million), occupancy and equipment ($0.3 million), FDIC insurance premiums ($0.4 million), data processing ($0.1 million) and other expense ($0.1 million). The increases over the prior year fourth quarter were the result of increased levels of business and staff resulting from organic growth.
Due to a book loss for the fourth quarter, income taxes provided a benefit to earnings of $3.4 million for the fourth quarter of 2016. This compares to an expense of $5.4 million for the third quarter of 2016 and $4.6 million for the fourth quarter of 2015. The Company currently expects an effective corporate income tax rate of approximately 32% for 2017.
Asset Quality
The provision for loan and lease losses increased to $25.2 million in the fourth quarter of 2016 from $6.8 million in the third quarter of 2016, and from $5.1 million in the fourth quarter of 2015. The increases were largely attributable to an increase in additional reserves specifically allocated to the Bank’s taxi medallion portfolio.
As of December 31, 2016, loans secured by taxi medallions totaled $65.6 million, representing 1.8% of total loans. A charge-off of $36.5 million was taken during the quarter in conjunction with the transfer of taxi medallion loans to held-for-sale, based largely on a value of approximately $500,000 per corporate medallion loan. During the quarter, the majority of the taxi portfolio ($63.0 million, or 96%) was designated as nonaccrual. The entire taxi loan portfolio was concurrently designated as loans held-for-sale, reflecting management’s intent to sell the portfolio.
Nonperforming assets, which includes nonaccrual loans and other real estate owned, were $69.4 million at December 31, 2016, $12.1 million at September 30, 2016 and $23.3 million at December 31, 2015. Nonperforming assets as a percent of total assets were 1.57% at December 31, 2016, 0.28% at September 30, 2016, and 0.58% at December 31, 2015. The increase in this ratio was mainly attributable to the taxi medallion loans that were designated nonaccrual during the 2016 fourth quarter. Excluding the taxi medallion loans, nonaccrual loans decreased to $5.7 million at December 31, 2016, from $7.9 million at September 30, 2016 and $20.7 million at December 31, 2015.
Annualized net charge-offs were 4.23% for the fourth quarter of 2016, 0.22% for the third quarter of 2016, and 0.00% for the fourth quarter of 2015. The increase in annualized net charge-offs from the sequential prior quarter and prior year fourth quarter was mainly attributable to a charge-off of $36.5 million related to the taxi medallion portfolio. The allowance for loan and lease losses was $25.7 million, representing 0.74% of loans receivable and 37.4% of nonaccrual loans at December 31, 2016. At September 30, 2016, the allowance was $37.6 million representing 1.09% of loans receivable and 327.3% of nonaccrual loans, and at December 31, 2015, the allowance was $26.6 million representing 0.86% of loans receivable and 128.1% of nonaccrual loans. The allowance as a percentage of nonaccruals (excluding taxi medallion loans) was 449.0% as of December 31, 2016, 478.8% as of September 30, 2016 and 128.1% as of December 31, 2015. 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 1.02% at December 31, 2016, 1.39% at September 30, 2016, and 1.28% at December 31, 2015. (See Supplemental GAAP and non-GAAP Financial Measures).
Selected Balance Sheet Items
At December 31, 2016, the Company’s total assets were $4.4 billion, an increase of $410 million from December 31, 2015. Total loans at December 31, 2016 were $3.6 billion, reflecting net loan growth (loan originations less pay-downs and pay-offs, including loans held-for-sale) of $455 million from December 31, 2015, primarily attributable to multifamily ($169 million, including a $28 million loan reclassified during the first quarter of 2016 to multifamily from other commercial real estate), commercial and industrial (“C&I”) ($62 million), other commercial real estate ($69 million, including the aforementioned reclassification) and construction ($157 million), which reflected higher utilization of existing construction facilities. The growth in loans was primarily funded with increases in deposits.
The Company’s stockholders’ equity was $531 million at December 31, 2016, an increase of $54 million from December 31, 2015. The increase in stockholders’ equity was primarily attributable to an increase of $38 million from a fourth quarter 2016 secondary offering of common stock, $22 million in retained earnings, approximately $3 million of equity issuance related to stock-based compensation, including the exercise of stock options, and an increase in accumulated other comprehensive income of $2 million, offset by an $11 million payoff of SBLF preferred stock. As of December 31, 2016, the Company’s tangible common equity ratio and tangible book value per share were 8.93% and $11.96, 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 December 31, 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) | |||||||
| December 31, | December 31, | ||||||
| 2016 | 2015 | ||||||
| ASSETS | |||||||
| Cash and due from banks | $ | 37,150 | $ | 31,291 | |||
| Interest-bearing deposits with banks | 163,249 | 169,604 | |||||
| Cash and cash equivalents | 200,399 | 200,895 | |||||
| Investment securities: | |||||||
| Available-for-sale | 353,290 | 195,770 | |||||
| Held-to-maturity (fair value of $0 and $231) | - | 224,056 | |||||
| Loans held-for-sale | 78,005 | - | |||||
| Loans receivable | 3,475,832 | 3,099,007 | |||||
| Less: Allowance for loan and lease losses | 25,744 | 26,572 | |||||
| Net loans receivable | 3,450,088 | 3,072,435 | |||||
| Investment in restricted stock, at cost | 24,310 | 32,612 | |||||
| Bank premises and equipment, net | 22,075 | 22,333 | |||||
| Accrued interest receivable | 12,965 | 12,545 | |||||
| Bank owned life insurance | 98,359 | 78,801 | |||||
| Other real estate owned | 626 | 2,549 | |||||
| Goodwill | 145,909 | 145,909 | |||||
| Core deposit intangibles | 3,088 | 3,908 | |||||
| Other assets | 37,234 | 24,096 | |||||
| Total assets | $ | 4,426,348 | $ | 4,015,909 | |||
| LIABILITIES | |||||||
| Deposits: | |||||||
| Noninterest-bearing | $ | 694,977 | $ | 650,775 | |||
| Interest-bearing | 2,649,294 | 2,140,191 | |||||
| Total deposits | 3,344,271 | 2,790,966 | |||||
| Borrowings | 476,280 | 671,587 | |||||
| Subordinated debentures (net of $621 and $812 in debt issuance costs) | 54,534 | 54,343 | |||||
| Other liabilities | 20,231 | 21,669 | |||||
| Total liabilities | 3,895,316 | 3,538,565 | |||||
| COMMITMENTS AND CONTINGENCIES | |||||||
| STOCKHOLDERS' EQUITY | |||||||
| Preferred stock | - | 11,250 | |||||
| Common stock | 412,726 | 374,287 | |||||
| Additional paid-in capital | 11,407 | 8,527 | |||||
| Retained earnings | 126,462 | 104,606 | |||||
| Treasury stock | (16,717 | ) | (16,717 | ) | |||
| Accumulated other comprehensive loss | (2,846 | ) | (4,609 | ) | |||
| Total stockholders' equity | 531,032 | 477,344 | |||||
| Total liabilities and stockholders' equity | $ | 4,426,348 | $ | 4,015,909 | |||
| CONNECTONE BANCORP, INC. AND SUBSIDIARIES | ||||||||||||||
| CONSOLIDATED STATEMENTS OF INCOME | ||||||||||||||
| (dollars in thousands, except for per share data) | ||||||||||||||
| Three Months Ended December 31, | Twelve Months Ended December 31, | |||||||||||||
| 2016 | 2015 | 2016 | 2015 | |||||||||||
| Interest income | ||||||||||||||
| Interest and fees on loans | $ | 38,600 | $ | 33,686 | $ | 147,982 | $ | 125,493 | ||||||
| Interest and dividends on investment securities: | ||||||||||||||
| Taxable | 1,389 | 2,325 | 7,266 | 10,665 | ||||||||||
| Tax-exempt | 959 | 884 | 3,827 | 3,550 | ||||||||||
| Dividends | 336 | 284 | 1,410 | 1,081 | ||||||||||
| Interest on federal funds sold and other short-term investments | 215 | 51 | 756 | 178 | ||||||||||
| Total interest income | 41,499 | 37,230 | 161,241 | 140,967 | ||||||||||
| Interest expense | ||||||||||||||
| Deposits | 5,135 | 3,776 | 18,667 | 13,756 | ||||||||||
| Borrowings | 2,957 | 2,998 | 12,429 | 10,058 | ||||||||||
| Total interest expense | 8,092 | 6,774 | 31,096 | 23,814 | ||||||||||
| Net interest income | 33,407 | 30,456 | 130,145 | 117,153 | ||||||||||
| Provision for loan and lease losses | 25,200 | 5,055 | 38,700 | 12,605 | ||||||||||
| Net interest income after provision for loan and lease losses | 8,207 | 25,401 | 91,445 | 104,548 | ||||||||||
| Noninterest income | ||||||||||||||
| Annuities and insurance commissions | 51 | 32 | 191 | 242 | ||||||||||
| Income on bank owned life insurance | 715 | 620 | 2,559 | 1,782 | ||||||||||
| Net gains on sale of loans held-for-sale | 86 | 51 | 232 | 327 | ||||||||||
| Deposit, loan and other income | 721 | 522 | 2,704 | 2,667 | ||||||||||
| Insurance recovery | - | - | - | 2,224 | ||||||||||
| Net gains on sale of investment securities | - | 1,138 | 4,234 | 3,931 | ||||||||||
| Total noninterest income | 1,573 | 2,363 | 9,920 | 11,173 | ||||||||||
| Noninterest expenses | ||||||||||||||
| Salaries and employee benefits | 7,888 | 7,205 | 31,130 | 27,685 | ||||||||||
| Occupancy and equipment | 2,122 | 1,802 | 8,571 | 7,587 | ||||||||||
| FDIC insurance | 985 | 575 | 2,940 | 2,110 | ||||||||||
| Professional and consulting | 901 | 906 | 2,979 | 2,951 | ||||||||||
| Marketing and advertising | 222 | 213 | 1,040 | 847 | ||||||||||
| Data processing | 1,106 | 1,017 | 4,141 | 3,703 | ||||||||||
| Loss on extinguishment of debt | - | - | - | 2,397 | ||||||||||
| Amortization of core deposit intangible | 193 | 217 | 820 | 917 | ||||||||||
| Other expenses | 1,835 | 1,644 | 6,886 | 6,287 | ||||||||||
| Total noninterest expenses | 15,252 | 13,579 | 58,507 | 54,484 | ||||||||||
| (Loss) income before income tax expense | (5,472 | ) | 14,185 | 42,858 | 61,237 | |||||||||
| Income tax (benefit) expense | (3,448 | ) | 4,617 | 11,776 | 19,926 | |||||||||
| Net (loss) income | (2,024 | ) | 9,568 | 31,082 | 41,311 | |||||||||
| Less: Preferred stock dividends | - | 28 | 22 | 112 | ||||||||||
| Net (loss) income available to common stockholders | $ | (2,024 | ) | $ | 9,540 | $ | 31,060 | $ | 41,199 | |||||
| (Loss) earnings per common share: | ||||||||||||||
| Basic | $ | (0.07 | ) | $ | 0.32 | $ | 1.02 | $ | 1.38 | |||||
| Diluted | (0.07 | ) | 0.31 | 1.01 | 1.36 | |||||||||
| Weighted average common shares outstanding: | ||||||||||||||
| Basic | 30,440,371 | 30,033,062 | 30,382,255 | 29,938,458 | ||||||||||
| Diluted | 30,729,359 | 30,310,905 | 30,676,393 | 30,283,966 | ||||||||||
| Dividends per common share | $ | 0.075 | $ | 0.075 | $ | 0.300 | $ | 0.300 | ||||||
| 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 | |||||||||||||||||||
| Dec. 31, | Sept. 30, | June 30, | Mar. 31, | Dec. 31, | |||||||||||||||
| 2016 | 2016 | 2016 | 2016 | 2015 | |||||||||||||||
| Selected Financial Data | |||||||||||||||||||
| Total assets | $ | 4,426,348 | $ | 4,327,804 | $ | 4,262,914 | $ | 4,091,000 | $ | 4,015,909 | |||||||||
| Loans receivable: | |||||||||||||||||||
| Commercial | 554,065 | 644,430 | 630,425 | 601,708 | 570,116 | ||||||||||||||
| Commercial real estate-other | 1,154,154 | 1,139,641 | 1,104,214 | 1,087,388 | 1,085,615 | ||||||||||||||
| Commercial real estate-multifamily | 1,050,067 | 961,163 | 967,555 | 940,913 | 881,081 | ||||||||||||||
| Commercial construction | 486,228 | 471,109 | 443,277 | 402,594 | 328,838 | ||||||||||||||
| Residential | 232,547 | 229,401 | 230,497 | 231,319 | 233,690 | ||||||||||||||
| Consumer | 2,380 | 2,879 | 1,976 | 1,851 | 2,454 | ||||||||||||||
| Gross loans | 3,479,441 | 3,448,623 | 3,377,944 | 3,265,773 | 3,101,794 | ||||||||||||||
| Unearned net origination fees | (3,609 | ) | (3,147 | ) | (2,324 | ) | (1,960 | ) | (2,787 | ) | |||||||||
| Loans receivable | 3,475,832 | 3,445,476 | 3,375,620 | 3,263,813 | 3,099,007 | ||||||||||||||
| Loans held-for-sale | 78,005 | 15,112 | 360 | - | - | ||||||||||||||
| Total loans | 3,553,837 | 3,460,588 | 3,375,980 | 3,263,813 | 3,099,007 | ||||||||||||||
| Securities available-for-sale | 353,290 | 338,459 | 208,266 | 191,331 | 195,770 | ||||||||||||||
| Securities held-to-maturity | - | - | 214,718 | 219,373 | 224,056 | ||||||||||||||
| Goodwill and other intangible assets | 148,997 | 149,190 | 149,383 | 149,600 | 149,817 | ||||||||||||||
| Deposits: | |||||||||||||||||||
| Noninterest-bearing | 694,977 | 655,683 | 648,664 | 614,508 | 650,776 | ||||||||||||||
| Interest-bearing | 563,740 | 531,500 | 523,742 | 517,809 | 490,380 | ||||||||||||||
| Savings | 205,551 | 207,717 | 210,040 | 219,865 | 216,399 | ||||||||||||||
| Money market | 911,867 | 866,710 | 866,643 | 678,222 | 658,695 | ||||||||||||||
| Time deposits | 968,136 | 1,007,339 | 951,904 | 862,667 | 774,717 | ||||||||||||||
| Total deposits | 3,344,271 | 3,268,949 | 3,200,993 | 2,893,071 | 2,790,967 | ||||||||||||||
| Borrowings | 476,280 | 481,337 | 496,414 | 646,501 | 671,587 | ||||||||||||||
| Subordinated debentures (net of issuance costs) | 54,534 | 54,490 | 54,441 | 54,392 | 54,343 | ||||||||||||||
| Total stockholders' equity | 531,032 | 499,588 | 484,414 | 474,727 | 477,344 | ||||||||||||||
| Quarterly Average Balances | |||||||||||||||||||
| Total assets | $ | 4,349,961 | $ | 4,344,796 | $ | 4,212,307 | $ | 4,034,375 | $ | 3,891,885 | |||||||||
| Loans receivable: | |||||||||||||||||||
| Commercial | 644,263 | 632,892 | 626,902 | 585,773 | 579,512 | ||||||||||||||
| Commercial real estate (including multifamily) | 2,130,955 | 2,081,741 | 2,056,263 | 2,005,872 | 1,919,263 | ||||||||||||||
| Commercial construction | 479,342 | 462,399 | 418,769 | 361,108 | 313,223 | ||||||||||||||
| Residential | 229,738 | 229,953 | 231,553 | 236,404 | 232,022 | ||||||||||||||
| Consumer | 2,777 | 2,771 | 2,865 | 2,670 | 3,269 | ||||||||||||||
| Gross loans | 3,487,075 | 3,409,756 | 3,336,352 | 3,191,827 | 3,047,289 | ||||||||||||||
| Unearned net origination fees | (3,151 | ) | (2,956 | ) | (2,295 | ) | (2,397 | ) | (2,706 | ) | |||||||||
| Loans receivable | 3,483,924 | 3,406,800 | 3,334,057 | 3,189,430 | 3,044,583 | ||||||||||||||
| Loans held-for-sale | 4,549 | 478 | 395 | 142 | 468 | ||||||||||||||
| Total loans | 3,488,473 | 3,407,278 | 3,334,452 | 3,189,572 | 3,045,051 | ||||||||||||||
| Securities available-for-sale | 351,809 | 269,895 | 202,103 | 222,776 | 219,927 | ||||||||||||||
| Securities held-to-maturity | - | 143,146 | 218,220 | 194,474 | 225,875 | ||||||||||||||
| Goodwill and other intangible assets | 149,123 | 149,317 | 149,525 | 149,741 | 149,959 | ||||||||||||||
| Deposits: | |||||||||||||||||||
| Noninterest-bearing | 666,913 | 640,323 | 581,743 | 609,312 | 608,227 | ||||||||||||||
| Interest-bearing | 534,127 | 553,401 | 528,954 | 503,896 | 476,237 | ||||||||||||||
| Savings | 205,477 | 211,162 | 215,267 | 215,491 | 216,149 | ||||||||||||||
| Money market | 891,764 | 872,937 | 791,845 | 656,557 | 636,180 | ||||||||||||||
| Time deposits | 985,944 | 1,007,530 | 889,561 | 807,801 | 783,068 | ||||||||||||||
| Total deposits | 3,284,225 | 3,285,353 | 3,007,370 | 2,793,057 | 2,719,861 | ||||||||||||||
| Borrowings | 476,925 | 488,015 | 639,054 | 684,469 | 617,024 | ||||||||||||||
| Subordinated debentures | 55,155 | 55,155 | 55,155 | 55,155 | 55,155 | ||||||||||||||
| Total stockholders' equity | 511,663 | 495,141 | 483,519 | 482,503 | 478,919 | ||||||||||||||
| Three Months Ended | |||||||||||||||||||
| Dec. 31, | Sept. 30, | June 30, | Mar. 31, | Dec. 31, | |||||||||||||||
| GAAP Earnings Data | 2016 | 2016 | 2016 | 2016 | 2015 | ||||||||||||||
| Net interest income | $ | 33,407 | $ | 33,024 | $ | 32,394 | $ | 31,320 | $ | 30,456 | |||||||||
| Provision for loan and lease losses | 25,200 | 6,750 | 3,750 | 3,000 | 5,055 | ||||||||||||||
| Net interest income after provision for loan and lease losses | 8,207 | 26,274 | 28,644 | 28,320 | 25,401 | ||||||||||||||
| Noninterest income | |||||||||||||||||||
| Annuity and insurance commissions | 51 | 68 | 32 | 40 | 32 | ||||||||||||||
| Bank-owned life insurance | 715 | 615 | 616 | 612 | 620 | ||||||||||||||
| Net gains on sale of loans held-for-sale | 86 | 56 | 56 | 35 | 51 | ||||||||||||||
| Deposit, loan and other income | 721 | 706 | 763 | 515 | 522 | ||||||||||||||
| Net gains on sale of investment securities | - | 4,131 | 103 | - | 1,138 | ||||||||||||||
| Total noninterest income | 1,573 | 5,576 | 1,570 | 1,202 | 2,363 | ||||||||||||||
| Noninterest expenses | |||||||||||||||||||
| Salaries and employee benefits | 7,888 | 7,791 | 7,753 | 7,599 | 7,205 | ||||||||||||||
| Occupancy and equipment | 2,122 | 2,049 | 2,154 | 2,247 | 1,802 | ||||||||||||||
| FDIC insurance | 985 | 745 | 615 | 595 | 575 | ||||||||||||||
| Professional and consulting | 901 | 667 | 700 | 711 | 906 | ||||||||||||||
| Marketing and advertising | 222 | 293 | 250 | 184 | 213 | ||||||||||||||
| Data processing | 1,106 | 1,002 | 1,010 | 1,024 | 1,017 | ||||||||||||||
| Amortization of core deposit intangible | 193 | 193 | 217 | 217 | 217 | ||||||||||||||
| Other expenses | 1,835 | 1,811 | 1,653 | 1,776 | 1,644 | ||||||||||||||
| Total noninterest expenses | 15,252 | 14,551 | 14,352 | 14,353 | 13,579 | ||||||||||||||
| (Loss) Income before income tax expense | (5,472 | ) | 17,299 | 15,862 | 15,169 | 14,185 | |||||||||||||
| Income tax (benefit) expense | (3,448 | ) | 5,443 | 5,003 | 4,778 | 4,617 | |||||||||||||
| Net (loss) income (GAAP) | $ | (2,024 | ) | $ | 11,856 | $ | 10,859 | $ | 10,391 | $ | 9,568 | ||||||||
| Less: preferred dividends | - | - | - | 22 | 28 | ||||||||||||||
| Net (loss) income available to common stockholders (GAAP) | $ | (2,024 | ) | $ | 11,856 | $ | 10,859 | $ | 10,369 | $ | 9,540 | ||||||||
| Reconciliation of GAAP Earnings to Operating Earnings | |||||||||||||||||||
| Net gains on sales of securities | $ | - | $ | (4,131 | ) | $ | (103 | ) | $ | - | $ | (1,138 | ) | ||||||
| Partial settlements of pension obligation | 67 | 69 | 87 | 103 | 106 | ||||||||||||||
| Amortization of intangible assets | 193 | 193 | 217 | 217 | 217 | ||||||||||||||
| Provision related to maturity and extension of acquired portfolio loans | 100 | 220 | 229 | 397 | 512 | ||||||||||||||
| Provision related to taxi cab medallion loans | 24,000 | 5,000 | 1,750 | 1,487 | 2,500 | ||||||||||||||
| Provision for pending disposition of Union Center operations bldg. | - | - | - | - | 1,304 | ||||||||||||||
| Accretion of purchase accounting fair value marks | (991 | ) | (1,077 | ) | (1,277 | ) | (1,367 | ) | (1,416 | ) | |||||||||
| Non-core items | 23,369 | 274 | 903 | 837 | 2,085 | ||||||||||||||
| Non-core items income tax benefit | 9,086 | 99 | 326 | 301 | 751 | ||||||||||||||
| Non-core items, after taxes | 14,283 | 175 | 577 | 536 | 1,334 | ||||||||||||||
| Core earnings available to common stockholders (non-GAAP) | $ | 12,259 | $ | 12,031 | $ | 11,436 | $ | 10,905 | $ | 10,874 | |||||||||
| Weighted average diluted shares outstanding | 30,729,359 | 30,401,684 | 30,340,376 | 30,257,676 | 30,310,905 | ||||||||||||||
| Diluted (loss) earnings per share (GAAP) | $ | (0.07 | ) | $ | 0.39 | $ | 0.36 | $ | 0.34 | $ | 0.31 | ||||||||
| Core Diluted earnings per share (Non-GAAP) (1) | 0.40 | 0.40 | 0.38 | 0.36 | 0.36 | ||||||||||||||
| Return on Assets Measures | |||||||||||||||||||
| Core earnings available to common stockholders (non-GAAP) | $ | 12,259 | $ | 12,031 | $ | 11,436 | $ | 10,905 | $ | 10,874 | |||||||||
| Add: preferred dividends | - | - | - | 22 | 28 | ||||||||||||||
| Core net income (non-GAAP) | $ | 12,259 | $ | 12,031 | $ | 11,436 | $ | 10,927 | $ | 10,902 | |||||||||
| Average assets | $ | 4,349,961 | $ | 4,344,796 | $ | 4,212,307 | $ | 4,034,375 | $ | 3,891,885 | |||||||||
| Less: average intangible assets | (149,123 | ) | (149,317 | ) | (149,525 | ) | (149,741 | ) | (149,959 | ) | |||||||||
| Average tangible assets | $ | 4,200,838 | $ | 4,195,479 | $ | 4,062,782 | $ | 3,884,634 | $ | 3,741,926 | |||||||||
| Return on avg. assets (GAAP) | -0.19 | % | 1.09 | % | 1.04 | % | 1.04 | % | 0.98 | % | |||||||||
| Core return on avg. assets (Non-GAAP) (2) | 1.12 | % | 1.10 | % | 1.09 | % | 1.09 | % | 1.11 | % | |||||||||
| Return on avg. tangible assets (Non-GAAP) (3) | -0.18 | % | 1.14 | % | 1.09 | % | 1.09 | % | 1.03 | % | |||||||||
| Core return on avg. tangible assets (Non-GAAP) (4) | 1.16 | % | 1.14 | % | 1.13 | % | 1.13 | % | 1.16 | % | |||||||||
| _____ | |||||||||||||||||||
| (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 | |||||||||||||||||||
| Dec. 31, | Sept. 30, | June 30, | Mar. 31, | Dec. 31, | |||||||||||||||
| 2016 | 2016 | 2016 | 2016 | 2015 | |||||||||||||||
| Return on Equity Measures | |||||||||||||||||||
| Core earnings available to common stockholders | $ | 12,259 | $ | 12,031 | $ | 11,436 | $ | 10,905 | $ | 10,874 | |||||||||
| Average common equity | $ | 511,663 | $ | 495,141 | $ | 483,519 | $ | 473,849 | $ | 467,669 | |||||||||
| Less: average intangible assets | (149,123 | ) | (149,317 | ) | (149,525 | ) | (149,741 | ) | (149,959 | ) | |||||||||
| Average tangible common equity | $ | 362,540 | $ | 345,824 | $ | 333,994 | $ | 324,108 | $ | 317,710 | |||||||||
| Return on avg. common equity (GAAP) | -1.57 | % | 9.53 | % | 9.03 | % | 8.80 | % | 8.09 | % | |||||||||
| Core return on avg. common equity (non-GAAP) (5) | 9.53 | % | 9.67 | % | 9.51 | % | 9.26 | % | 9.23 | % | |||||||||
| Return on avg. tangible common equity (non-GAAP) (6) | -2.10 | % | 13.77 | % | 13.23 | % | 13.03 | % | 12.07 | % | |||||||||
| Core return on avg. tangible common equity (non-GAAP) (7) | 13.45 | % | 13.84 | % | 13.77 | % | 13.53 | % | 13.58 | % | |||||||||
| Efficiency Measures | |||||||||||||||||||
| Total noninterest expenses | $ | 15,252 | $ | 14,551 | $ | 14,352 | $ | 14,353 | $ | 13,579 | |||||||||
| Partial settlements of pension obligation | (67 | ) | (69 | ) | (87 | ) | (103 | ) | (106 | ) | |||||||||
| Foreclosed property expense | (81 | ) | (37 | ) | 10 | (167 | ) | (387 | ) | ||||||||||
| Amortization of intangible assets and fair value marks | (193 | ) | (193 | ) | (217 | ) | (217 | ) | (217 | ) | |||||||||
| Operating noninterest expense | $ | 14,911 | $ | 14,252 | $ | 14,058 | $ | 13,866 | $ | 12,869 | |||||||||
| Net interest income (FTE) | $ | 34,120 | $ | 33,762 | $ | 33,112 | $ | 31,985 | $ | 31,102 | |||||||||
| Impact of purchase accounting fair value marks | (960 | ) | (1,045 | ) | (1,245 | ) | (1,335 | ) | (1,384 | ) | |||||||||
| Noninterest income | 1,573 | 5,576 | 1,570 | 1,202 | 2,363 | ||||||||||||||
| Net gains on sales of securities | - | (4,131 | ) | (103 | ) | - | (1,138 | ) | |||||||||||
| Operating revenue | $ | 34,733 | $ | 34,162 | $ | 33,334 | $ | 31,852 | $ | 30,943 | |||||||||
| Operating efficiency ratio (non-GAAP) (8) | 42.9 | % | 41.7 | % | 42.2 | % | 43.5 | % | 41.6 | % | |||||||||
| Net Interest Margin | |||||||||||||||||||
| Average interest-earning assets | $ | 4,038,030 | $ | 4,041,020 | $ | 3,912,802 | $ | 3,728,958 | $ | 3,582,408 | |||||||||
| Net interest income (FTE) | $ | 34,120 | $ | 33,762 | $ | 33,112 | $ | 31,985 | $ | 31,102 | |||||||||
| Impact of purchase accounting fair value marks | (960 | ) | (1,045 | ) | (1,245 | ) | (1,335 | ) | (1,384 | ) | |||||||||
| Adjusted net interest income | $ | 33,160 | $ | 32,717 | $ | 31,867 | $ | 30,650 | $ | 29,718 | |||||||||
| Net interest margin (GAAP) | 3.36 | % | 3.32 | % | 3.40 | % | 3.45 | % | 3.44 | % | |||||||||
| Adjusted net interest margin (non-GAAP) (9) | 3.27 | % | 3.22 | % | 3.28 | % | 3.31 | % | 3.29 | % | |||||||||
| _____ | |||||||||||||||||||
| (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 | |||||||||||||||||||
| Dec. 31, | Sept. 30, | June 30, | Mar. 31, | Dec. 31, | |||||||||||||||
| (dollars in thousands, except share data) | 2016 | 2016 | 2016 | 2016 | 2015 | ||||||||||||||
| Capital Ratios and Book Value per Share | |||||||||||||||||||
| Common equity | $ | 531,032 | $ | 499,588 | $ | 484,414 | $ | 474,727 | $ | 466,094 | |||||||||
| Less: intangible assets | (148,997 | ) | (149,190 | ) | (149,383 | ) | (149,600 | ) | (149,817 | ) | |||||||||
| Tangible common equity | $ | 382,035 | $ | 350,398 | $ | 335,031 | $ | 325,127 | $ | 316,277 | |||||||||
| Total assets | $ | 4,426,348 | $ | 4,327,804 | $ | 4,262,914 | $ | 4,091,000 | $ | 4,015,909 | |||||||||
| Less: intangible assets | (148,997 | ) | (149,190 | ) | (149,383 | ) | (149,600 | ) | (149,817 | ) | |||||||||
| Tangible assets | $ | 4,277,351 | $ | 4,178,614 | $ | 4,113,531 | $ | 3,941,400 | $ | 3,866,092 | |||||||||
| Common shares outstanding | 31,944,403 | 30,197,318 | 30,197,318 | 30,163,078 | 30,085,663 | ||||||||||||||
| Common equity ratio (GAAP) | 12.00 | % | 11.54 | % | 11.36 | % | 11.60 | % | 11.61 | % | |||||||||
| Tangible common equity ratio (non-GAAP) (10) | 8.93 | % | 8.39 | % | 8.14 | % | 8.25 | % | 8.18 | % | |||||||||
| Regulatory capital ratios (Bancorp): | |||||||||||||||||||
| Leverage ratio | 9.29 | % | 8.49 | % | 8.52 | % | 8.66 | % | 9.07 | % | |||||||||
| Common equity Tier 1 risk-based ratio | 9.74 | % | 9.25 | % | 9.10 | % | 9.06 | % | 9.14 | % | |||||||||
| Risk-based Tier 1 capital ratio | 9.87 | % | 9.38 | % | 9.23 | % | 9.20 | % | 9.61 | % | |||||||||
| Risk-based total capital ratio | 11.78 | % | 11.69 | % | 11.44 | % | 11.36 | % | 11.77 | % | |||||||||
| Regulatory capital ratios (Bank): | |||||||||||||||||||
| Leverage ratio | 10.34 | % | 9.57 | % | 9.62 | % | 9.83 | % | 9.96 | % | |||||||||
| Common equity Tier 1 risk-based ratio | 10.98 | % | 10.58 | % | 10.43 | % | 10.45 | % | 10.55 | % | |||||||||
| Risk-based Tier 1 capital ratio | 10.98 | % | 10.58 | % | 10.43 | % | 10.45 | % | 10.55 | % | |||||||||
| Risk-based total capital ratio | 11.63 | % | 11.57 | % | 11.30 | % | 11.24 | % | 11.31 | % | |||||||||
| Book value per share (GAAP) | $ | 16.62 | $ | 16.54 | $ | 16.04 | $ | 15.74 | $ | 15.49 | |||||||||
| Tangible book value per share (non-GAAP) (11) | 11.96 | 11.60 | 11.09 | 10.78 | 10.51 | ||||||||||||||
| Three Months Ended | |||||||||||||||||||
| Dec. 31, | Sept. 30, | June 30, | Mar. 31, | Dec. 31, | |||||||||||||||
| 2016 | 2016 | 2016 | 2016 | 2015 | |||||||||||||||
| NCO Detail | |||||||||||||||||||
| Net loan charge-offs: | |||||||||||||||||||
| Charge-offs | $ | 37,074 | $ | 1,910 | $ | 77 | $ | 512 | $ | 18 | |||||||||
| Recoveries | (2 | ) | (12 | ) | (16 | ) | (14 | ) | (2 | ) | |||||||||
| Net loan charge-offs | $ | 37,072 | $ | 1,898 | $ | 61 | $ | 498 | $ | 16 | |||||||||
| as a % of average total loans (annualized) | 4.23 | % | 0.22 | % | 0.01 | % | 0.06 | % | 0.00 | % | |||||||||
| Asset Quality | |||||||||||||||||||
| Nonaccrual loans-taxis | $ | 63,044 | $ | 3,637 | $ | 3,882 | $ | 1,871 | $ | - | |||||||||
| Nonaccrual loans-other | 5,734 | 7,856 | 18,029 | 19,579 | 20,737 | ||||||||||||||
| Other real estate owned | 626 | 626 | 2,029 | 1,696 | 2,549 | ||||||||||||||
| Total nonperforming assets | $ | 69,404 | $ | 12,119 | $ | 23,940 | $ | 23,146 | $ | 23,286 | |||||||||
| Performing troubled debt restructurings | $ | 11,627 | $ | 105,338 | $ | 97,831 | $ | 95,122 | $ | 85,925 | |||||||||
| Nonaccrual loans as a % of loans receivable | 1.98 | % | 0.33 | % | 0.65 | % | 0.66 | % | 0.67 | % | |||||||||
| Nonaccrual loans excluding taxis as a % of loans receivable | 0.16 | % | 0.23 | % | 0.53 | % | 0.60 | % | 0.67 | % | |||||||||
| Nonperforming assets as a % of total assets | 1.57 | % | 0.28 | % | 0.56 | % | 0.57 | % | 0.58 | % | |||||||||
| Allowance for loan losses as a % of nonaccrual loans | 37.4 | % | 327.3 | % | 149.5 | % | 135.5 | % | 128.1 | % | |||||||||
| Allowance for loan losses as a % of nonaccrual loans excluding taxis | 449.0 | % | 478.8 | % | 181.7 | % | 148.5 | % | 128.1 | % | |||||||||
| Loans receivable | $ | 3,475,832 | $ | 3,445,476 | $ | 3,375,620 | $ | 3,263,813 | $ | 3,099,007 | |||||||||
| Less: acquired loans | (664,529 | ) | (736,894 | ) | (799,851 | ) | (825,047 | ) | (866,878 | ) | |||||||||
| Loans receivable, excluding acquired loans | $ | 2,811,303 | $ | 2,708,582 | $ | 2,575,769 | $ | 2,438,766 | $ | 2,232,129 | |||||||||
| Allowance for loan losses | $ | 25,744 | $ | 37,615 | $ | 32,763 | $ | 29,074 | $ | 26,572 | |||||||||
| Accretable credit risk discount on acquired loans | 9,663 | 10,408 | 11,198 | 12,101 | 12,955 | ||||||||||||||
| Total allowance for loan losses and accretable credit risk discount on acquired loans | $ | 35,407 | $ | 48,023 | $ | 43,961 | $ | 41,175 | $ | 39,527 | |||||||||
| Allowance for loan losses as a % of loans receivable | 0.74 | % | 1.09 | % | 0.97 | % | 0.89 | % | 0.86 | % | |||||||||
| Allowance for loan losses as a % of loans receivable, excluding acquired loans | 0.92 | % | 1.39 | % | 1.27 | % | 1.19 | % | 1.19 | % | |||||||||
| Allowance for loan losses and accretable credit risk discount on loans as a % of loans receivable | 1.02 | % | 1.39 | % | 1.30 | % | 1.26 | % | 1.28 | % | |||||||||
| (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 | |||||||||||||||||||||||||||||||||
| December 31, 2016 | September 30, 2016 | December 31, 2015 | |||||||||||||||||||||||||||||||
| Average | (7 | ) | Average | (7 | ) | Average | (7 | ) | |||||||||||||||||||||||||
| Interest-earning assets: | Balance | Interest | Rate | Balance | Interest | Rate | Balance | Interest | Rate | ||||||||||||||||||||||||
| Investment securities (1) (2) | $ | 346,377 | $ | 2,864 | 3.29 | % | $ | 406,802 | $ | 3,293 | 3.22 | % | $ | 442,135 | $ | 3,686 | 3.31 | % | |||||||||||||||
| Total loans (2) (3) (4) | 3,488,473 | 38,797 | 4.42 | 3,407,278 | 38,010 | 4.44 | 3,045,051 | 33,855 | 4.41 | ||||||||||||||||||||||||
| Federal funds sold and interest- | |||||||||||||||||||||||||||||||||
| bearing deposits with banks | 178,845 | 215 | 0.48 | 202,106 | 261 | 0.51 | 65,067 | 51 | 0.31 | ||||||||||||||||||||||||
| Restricted investment in bank stock | 24,335 | 336 | 5.49 | 24,834 | 352 | 5.64 | 30,155 | 284 | 3.74 | ||||||||||||||||||||||||
| Total interest-earning assets | 4,038,030 | 42,212 | 4.16 | 4,041,020 | 41,916 | 4.13 | 3,582,408 | 37,876 | 4.19 | ||||||||||||||||||||||||
| Allowance for loan losses | (38,932 | ) | (34,052 | ) | (22,165 | ) | |||||||||||||||||||||||||||
| Noninterest-earning assets | 350,863 | 337,828 | 331,642 | ||||||||||||||||||||||||||||||
| Total assets | $ | 4,349,961 | $ | 4,344,796 | $ | 3,891,885 | |||||||||||||||||||||||||||
| Interest-bearing liabilities: | |||||||||||||||||||||||||||||||||
| Money market deposits | 891,764 | 1,346 | 0.60 | 872,937 | 1,211 | 0.55 | 636,180 | 840 | 0.52 | ||||||||||||||||||||||||
| Savings deposits | 205,477 | 146 | 0.28 | 211,162 | 158 | 0.30 | 216,149 | 152 | 0.28 | ||||||||||||||||||||||||
| Time deposits | 985,944 | 3,199 | 1.29 | 1,007,530 | 3,323 | 1.31 | 783,068 | 2,446 | 1.24 | ||||||||||||||||||||||||
| Other interest-bearing deposits | 534,127 | 444 | 0.33 | 553,401 | 467 | 0.34 | 476,237 | 338 | 0.28 | ||||||||||||||||||||||||
| Total interest-bearing deposits | 2,617,312 | 5,135 | 0.78 | 2,645,030 | 5,159 | 0.78 | 2,111,634 | 3,776 | 0.71 | ||||||||||||||||||||||||
| Borrowings | 476,925 | 2,105 | 1.76 | 488,015 | 2,139 | 1.74 | 617,024 | 2,159 | 1.39 | ||||||||||||||||||||||||
| Subordinated debentures (8) | 55,155 | 810 | 5.84 | 55,155 | 814 | 5.87 | 55,155 | 795 | 5.72 | ||||||||||||||||||||||||
| Capital lease obligation | 2,783 | 42 | 6.00 | 2,814 | 42 | 5.94 | 2,904 | 44 | 6.01 | ||||||||||||||||||||||||
| Total interest-bearing liabilities | 3,152,175 | 8,092 | 1.02 | 3,191,014 | 8,154 | 1.02 | 2,786,717 | 6,774 | 0.96 | ||||||||||||||||||||||||
| Demand deposits | 666,913 | 640,323 | 608,227 | ||||||||||||||||||||||||||||||
| Other liabilities | 19,210 | 18,318 | 18,022 | ||||||||||||||||||||||||||||||
| Total noninterest-bearing liabilities | 686,123 | 658,641 | 626,249 | ||||||||||||||||||||||||||||||
| Stockholders' equity | 511,663 | 495,141 | 478,919 | ||||||||||||||||||||||||||||||
| Total liabilities and stockholders' equity | $ | 4,349,961 | $ | 4,344,796 | $ | 3,891,885 | |||||||||||||||||||||||||||
| Net interest income (tax equivalent basis) | 34,120 | 33,762 | 31,102 | ||||||||||||||||||||||||||||||
| Net interest spread (5) | 3.14 | % | 3.11 | % | 3.23 | % | |||||||||||||||||||||||||||
| Net interest margin (6) | 3.36 | % | 3.32 | % | 3.44 | % | |||||||||||||||||||||||||||
| Tax equivalent adjustment | (713 | ) | (738 | ) | (646 | ) | |||||||||||||||||||||||||||
| Net interest income | $ | 33,407 | $ | 33,024 | $ | 30,456 | |||||||||||||||||||||||||||
| (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) Amount does not reflect netting of debt issuance costs of $621, $665 and $812 for the three months ended December 31, 2016, | |||||||||||||||||||||||||||||||||
| September 30, 2016 and December 31, 2015, respectively. | |||||||||||||||||||||||||||||||||