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Mar 31, 2023
ConnectOne Bancorp Q1 2023 Earnings Report
ConnectOne Bancorp reported a decrease in net income and diluted earnings per share for Q1 2023 due to decreased net interest income and increased noninterest expenses, partially offset by decreased provision for credit losses and income tax expense.
Key Takeaways
ConnectOne Bancorp reported a net income available to common stockholders of $23.4 million for Q1 2023, with diluted earnings per share of $0.59. The results were impacted by a decrease in net interest income and an increase in noninterest expenses, though deposit inflows increased by $400 million.
Current liquidity enhanced to nearly $4 billion, representing 250% of uninsured and uncollateralized deposits.
Core client net inflows contributed to a $400 million sequential increase in deposits for the quarter.
TCE ratio of 8.9% and CET1 ratio of 10.5% at quarter-end, largely unaffected by rising interest rates.
Net interest margin compressed to 3.00% due to rising interest costs and liquidity tightening.
Forward Guidance
ConnectOne Bancorp anticipates relatively flat loan and expense growth for the remainder of 2023 given the current economic outlook.
Positive Outlook
- Maintaining client relationships
- Transforming infrastructure
- Building core deposits
- High credit standards
- Diversified relationship-based client philosophy
Challenges Ahead
- Increased deposit rate competition
- Accelerated net interest margin compression
- Near-term headwinds
- Economic uncertainty
- Relatively flat loan and expense growth expected
Historical Earnings Impact
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Avg. Return Before/After Earnings
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