ConnectOne Bancorp Inc (CNOB, Financial) released its Q3 2023 earnings report on October 26, 2023. The company reported net income available to common stockholders of $19.9 million, consistent with the previous quarter but down from $27.4 million in Q3 2022. Diluted earnings per share were $0.51 for Q3 2023, also consistent with Q2 2023 but down from $0.70 in Q3 2022. The decreases were primarily due to a $15.8 million decrease in net interest income and a $3.6 million increase in noninterest expenses, partially offset by an $8.5 million decrease in the provision for credit losses, a $0.2 million increase in noninterest income, and a $3.2 million decrease in income tax expense.
Financial Highlights
ConnectOne Bancorp Inc (CNOB, Financial) declared a quarterly cash dividend on its common stock of $0.17, to be paid on December 1, 2023, to common stockholders of record on November 15, 2023. A dividend of $0.328125 per depositary share, representing a 1/40th interest in the Company’s 5.25% Fixed Rate Reset Non-Cumulative Perpetual Preferred Stock, Series A, will also be paid on December 1, 2023 to preferred stockholders of record on November 15, 2023.
The company's total assets were $9.7 billion as of September 30, 2023, an increase of $34 million from December 31, 2022. The increase in total assets was primarily due to an increase in loans receivable of $81 million, partially offset by decreases in investment securities of $53 million. Total deposits were $7.4 billion, an increase of $82 million from December 31, 2022.
Company Performance and Future Outlook
Despite challenging market conditions, ConnectOne Bancorp Inc (CNOB, Financial) remains well-positioned to capitalize on new growth opportunities. The company's tangible common equity ratio remains above 9%, well above peer averages, demonstrating continued effective management of ConnectOne’s capital and AOCI. Additionally, credit quality metrics remain sound, reflective of prudent underwriting, strong portfolio oversight, and a resilient economy.
As the company approaches Q4, it is focused on navigating the challenges that lie ahead. ConnectOne Bancorp Inc (CNOB, Financial) remains one of the industry’s most efficient banks nationwide and is poised for continued success by maintaining financial discipline, leveraging its results-oriented client-centric culture, and continuing to invest in its valuable franchise.
Share Repurchase Program
During Q3 2023, the company repurchased 316,789 shares of common stock at an average price of $19.45, leaving approximately 1.0 million shares authorized for repurchase under the current Board approved repurchase program.
Explore the complete 8-K earnings release (here) from ConnectOne Bancorp Inc for further details.
