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Sep 30, 2022
ConnectOne Bancorp Q3 2022 Earnings Report
Reported solid third quarter results driven by strong organic growth and a stable net interest margin.
Key Takeaways
ConnectOne Bancorp reported a net income available to common stockholders of $27.4 million for Q3 2022, with diluted earnings per share of $0.70. The results reflect continued execution and dedication to relationship banking, with record pre-tax, pre-provision earnings and a robust net interest margin of 3.68%.
Achieved record pre-tax, pre-provision earnings, increasing by over 4% sequentially and nearly 12% year-over-year.
Net interest margin remained robust at 3.68%.
Efficiency ratio remained below 40%.
Total deposits grew by 10.5%, surpassing 8.6% in sequential loan growth.
Forward Guidance
ConnectOne anticipates loan yields to increase and spreads to widen heading into the fourth quarter, with a moderated pipeline. The company expects to leverage technology investments for infrastructure enhancements and new deposit origination opportunities, while demand remains solid across its markets.
Positive Outlook
- Loan yields are increasing.
- Spreads continue to widen.
- Majority of loans originated included a deposit relationship.
- Investments in technology facilitate enhancements in infrastructure and workflows.
- Demand remains solid.
Challenges Ahead
- Loan pipeline has moderated.
- Increased provision for credit losses.
- Noninterest expenses increased.
- Net losses on equity securities.
Historical Earnings Impact
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Avg. Return Before/After Earnings
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