Item 5. Market for Registrant’s Common Equity
Item 5. Market for the Registrant’s
Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities
Security Market Information
The common stock of the Company is traded on the
NASDAQ Global Select Market under the symbol “CNOB”. As of December 31, 2021, the Company had 686 stockholders of record,
excluding beneficial owners for whom Cede & Company or others act as nominees.
Share Repurchase Program
Historically, repurchases have been made from time
to time as, in the opinion of management, market conditions warranted, in the open market or in privately negotiated transactions.
In March 2019, the Board of Directors of the Company
approved a share repurchase program for up to 1,200,000 shares. In September 2021, the Board of Directors had authorized the repurchase
of up to an additional 2,000,000 shares. The Company may repurchase shares from time to time in the open market, in privately negotiated
share purchases or pursuant to any trading plan that may be adopted in accordance with Rule 10b5-1 of the Securities and Exchange Commission
and applicable federal securities laws. The share repurchase plan does not obligate the Company to acquire any particular amount of common
stock, and it may be modified or suspended at any time at the Company's discretion. During the year ended December 31, 2021, the Company
repurchased a total of 330,541 shares. As of December 31, 2021, shares remaining for repurchase under the program were 2,274,748.
The following table details
share repurchases for the year 2021:
Shares Authorized
Total Number
of Shares Purchased
Average Price
Paid per Share
Cumulative Total Number of Shares Purchased
as Part of Publicly Announced Plans or Programs
Maximum Number of Shares that May Yet Be
Purchased Under the Plans or Programs
605,289
First quarter 2021
-
93,629
$
25.72
688,340
511,660
Second quarter 2021
-
-
-
688,340
511,660
Third quarter 2021
2,000,000
196,069
28.71
884,409
2,315,591
Fourth quarter 2021
-
40,843
33.22
925,252
2,274,748
Dividends
Federal laws and regulations contain restrictions
on the ability of the Parent Corporation and the Bank to pay dividends. For information regarding restrictions on dividends, see Part
I, Item 1, “Business” and Part II, Item 8, “Financial Statements and Supplementary Data”, Note 18 and Note 21
of the Notes to Consolidated Financial Statements.”
Stockholders Return Comparison
Set forth on the following page is a line graph
presentation comparing the cumulative stockholder return on the Parent Corporation’s common stock, on a dividend reinvested basis,
against the cumulative total returns of the NASDAQ Composite and the KBW Bank Index for the period from December 31, 2016 through December
31, 2021.
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COMPARE 5-YEAR CUMULATIVE
TOTAL RETURN
AMONG CONNECTONE BANCORP INC.
NASDAQ AND KBW BANK INDEX
Assumes $100 Invested on December 31, 2016,
with Dividends Reinvested
Year Ended December 31, 2021
COMPARISON OF CUMULATIVE TOTAL RETURN OF ONE
OR MORE
COMPANIES, PEER GROUPS, INDUSTRY INDEXES AND/OR BROAD MARKETS
Fiscal Year Ending
Company/Index/Market
12/31/16
12/31/17
12/31/18
12/31/19
12/31/20
12/31/21
ConnectOne Bancorp, Inc.
100.00
100.47
72.91
103.18
81.09
136.12
NASDAQ
100.00
129.73
126.08
172.41
250.08
305.63
KBW Bank Index
100.00
128.51
152.41
125.42
170.72
171.55
Item 6. Selected Financial Data
The following tables set forth selected consolidated
financial data as of the dates and for the periods presented. The selected consolidated statement of financial condition data as of December
31, 2021 and 2020 and the selected consolidated summary of income data for the years ended December 31, 2021, 2020 and 2019 have been
derived from our audited consolidated financial statements and related notes that we have included elsewhere in this Annual Report. The
selected consolidated statement of financial condition data as of December 31, 2019 and the selected consolidated summary of income data
have been derived from audited consolidated financial statements that are not presented in this Annual Report.
The selected historical consolidated financial
data as of any date and for any period are not necessarily indicative of the results that may be achieved as of any future date or for
any future period. You should read the following selected statistical and financial data in conjunction with the more detailed information
contained in “Management’s Discussion and Analysis of Financial Condition and Results of Operations” and our consolidated
financial statements and the related notes that we have presented elsewhere in this Annual Report.
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SUMMARY OF SELECTED STATISTICAL INFORMATION
AND FINANCIAL DATA
As of and for the years ended December 31,
($ in thousands except per share amounts)
2021
2020
2019
Selected Statement of Financial Condition Data
Total assets
$
8,129,480
$
7,547,339
$
6,174,032
Loans receivable
6,828,622
6,236,307
5,113,527
Allowance for credit losses - loans
78,773
79,226
38,293
Investment securities
534,507
487,955
404,701
Goodwill and other intangible assets
217,369
219,349
168,034
Borrowings
468,193
425,954
500,293
Subordinated debt (net of issuance costs)
152,951
202,648
128,885
Deposits
6,332,953
5,959,224
4,767,542
Tangible
common stockholders’ equity (1)
795,916
695,961
563,156
Total stockholders’ equity
1,124,212
915,310
731,190
Average total assets
7,735,228
7,453,474
6,014,535
Average common stockholders’ equity
965,995
880,720
705,496
Common Dividends
Cash dividends paid on common stock
$
17,493
$
14,317
$
12,160
Common dividend payout ratio
13.60
%
20.08
%
16.57
%
Cash dividends per common share
$
0.48
$
0.27
$
0.36
Selected Statement of Income Data
Interest income
$
301,738
$
308,200
$
271,484
Interest expense
(38,860
)
(70,209
)
(85,165
)
Net interest income
262,878
237,991
186,319
Reversal of (Provision for) credit losses
5,500
(41,000
)
(8,100
)
Net interest income after provision for credit losses
268,378
196,991
178,219
Noninterest income
15,691
14,400
8,035
Noninterest expense
(109,011
)
(121,001
)
(92,228
)
Income before income tax expense
175,058
90,390
94,026
Income tax expense
(44,705
)
(19,101
)
(20,631
)
Net income
130,353
71,289
73,395
Preferred stock dividends
1,717
-
-
Net income available to common stockholders
$
128,636
$
71,289
$
73,395
(1)
This measure is not recognized under generally accepted accounting principles in the United States (“GAAP”)
and is therefore considered to be a non-GAAP financial measure. See –“Non-GAAP Reconciliation Table” for a reconciliation
of this measure to its most comparable GAAP measure.
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As
of and for the years ended December 31,
2021
2020
2019
Per Common Share Data
Basic earnings per share
$
3.24
$
1.80
$
2.08
Diluted earnings per share
3.22
1.79
2.07
Book value per common share
25.61
23.01
20.85
Tangible book value per common share (1)
20.12
17.49
16.06
Selected Performance Ratios
Return on average assets
1.69
%
0.96
%
1.22
%
Return on average common stockholders’ equity
13.32
8.09
10.40
Return on average tangible common equity (1)
17.21
10.80
13.61
Net interest margin
3.66
3.46
3.35
Selected Asset Quality Ratios
As a % of Loans Receivable:
Nonaccrual loans (excluding loans held-for-sale)
0.90
%
0.99
%
0.97
%
Loans 90 days or greater past due and still accruing
0.20
0.21
0.06
Performing TDRs
0.64
0.38
0.42
Allowance for credit losses - loans
1.15
1.27
0.75
Nonperforming assets (2) to total assets
0.76
%
0.82
%
0.80
%
Allowance for credit losses for loans to nonaccrual loans
127.7
128.4
77.4
Net loan charge-offs to average loans
0.03
0.00
0.09
Company Capital Ratios
Leverage ratio
11.65
%
9.51
%
9.54
%
Common equity Tier 1 risk-based ratio
10.64
10.79
9.95
Risk-based Tier 1 capital ratio
12.19
10.87
10.04
Risk-based capital ratio
15.26
15.08
12.96
Tangible common equity to tangible assets (1)
10.06
9.50
9.38
__________________________
(1)
These measures are not measures recognized under generally accepted accounting principles in the United States (“GAAP”) and
are therefore considered to be non-GAAP financial measures. See –“Non-GAAP Reconciliation Table” for a reconciliation
of these measurers to their most comparable GAAP measures.
(2)
Nonperforming assets are defined as nonaccrual loans and other real estate owned.
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Non-GAAP Reconciliation Table ($ in thousands, except per share
amounts)
As of December 31,
2021
2020
2019
Tangible common equity and tangible common equity/tangible assets
Stockholders equity
$
1,124,212
$
915,310
$
731,190
Less: Preferred stock
110,927
-
-
Common stockholders equity
$
1,013,285
$
915,310
$
731,190
Less: Goodwill and other intangible assets
217,369
219,349
168,034
Tangible common stockholders’ equity
$
795,916
$
695,961
$
563,156
Total assets
$
8,129,480
$
7,547,339
$
6,174,032
Less: goodwill and other intangible assets
217,369
219,349
168,034
Tangible assets
$
7,912,111
$
7,327,990
$
6,005,998
Tangible common equity ratio
10.06
%
9.50
%
9.38
%
Tangible book value per common share
Book value per common share
$
25.61
$
23.01
$
20.85
Less: goodwill and other intangible assets
5.49
5.52
4.79
Tangible book value per common share
$
20.12
$
17.49
$
16.06
Return on average tangible common equity
Net income available to common stockholders
$
128,636
$
71,289
$
73,395
Average stockholders’ equity
$
1,007,023
$
880,720
$
705,496
Less: average preferred stock
41,028
-
-
Average common stockholders’ equity
965,995
880,720
705,496
Less: goodwill and other intangible assets
218,417
220,570
166,116
Average tangible common stockholders’ equity
$
747,578
$
660,150
$
539,380
Return on average common stockholders’ equity
13.32
%
8.09
%
10.40
%
Return on average tangible common stockholders’ equity
17.21
%
10.80
%
13.61
%
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