ConnectOne Bancorp (CNOB) has reported 9.35 percent rise in profit for the quarter ended Sep. 30, 2016. The company has earned $11.86 million, or $0.39 a share in the quarter, compared with $10.84 million, or $0.36 a share for the same period last year.
Revenue during the quarter grew 8.44 percent to $31.85 million from $29.37 million in the previous year period. Net interest income for the quarter rose 11.09 percent over the prior year period to $33.02 million. Non-interest income for the quarter rose 46.01 percent over the last year period to $5.58 million.
ConnectOne Bancorp has made provision of $6.75 million for loan losses during the quarter, up 61.68 percent from $4.18 million in the same period last year.
Net interest margin contracted 18 basis points to 3.32 percent in the quarter from 3.50 percent in the last year period.
Frank Sorrentino, ConnectOne’s chairman and chief executive officer 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."
Liabilities outpace assets growthTotal assets stood at $4,327.80 million as on Sep. 30, 2016, up 12.75 percent compared with $3,838.25 million on Sep. 30, 2015. On the other hand, total liabilities stood at $3,828.22 million as on Sep. 30, 2016, up 13.69 percent from $3,367.11 million on Sep. 30, 2015.
Loans outpace deposit growthNet loans stood at $3,407.86 million as on Sep. 30, 2016, up 16.24 percent compared with $2,931.85 million on Sep. 30, 2015. Deposits stood at $3,268.95 million as on Sep. 30, 2016, up 22.59 percent compared with $2,666.62 million on Sep. 30, 2015. Noninterest-bearing deposit liabilities were $655.68 million or 20.06 percent of total deposits on Sep. 30, 2016, compared with $586.64 million or 22 percent of total deposits on Sep. 30, 2015.
Investments stood at $338.46 million as on Sep. 30, 2016, down 25.03 percent or $112.98 million from year-ago. Shareholders equity stood at $499.59 million as on Sep. 30, 2016, up 6.04 percent or $28.44 million from year-ago.
Return on average assets moved down 6 basis points to 1.09 percent in the quarter from 1.15 percent in the last year period.
Meanwhile, nonperforming assets to total assets was 0.28 percent in the quarter, down from 0.42 percent in the last year period.
Book value per share was $16.54 for the quarter, up 8.60 percent or $1.31 compared to $15.23 for the same period last year.
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