Investor Relations

Press Release

ConnectOne Bancorp, Inc. Reports Fourth Quarter and Full-Year 2016 Results

Company Release - 1/26/2017 7:00 AM ET

ENGLEWOOD CLIFFS, N.J., Jan. 26, 2017 (GLOBE NEWSWIRE) -- ConnectOne Bancorp, Inc. (Nasdaq:CNOB) (the “Company” or “ConnectOne”), parent company of ConnectOne Bank (the “Bank”), today reported a net loss available to common stockholders of $2.0 million, or $(0.07) per diluted share for the fourth quarter of 2016.  The loss was due to a charge taken against the Bank’s taxi medallion portfolio, as anticipated in the Company’s previously filed Current Report on Form 8-K of December 13, 2016.  Net income available to common stockholders for the third quarter of 2016 was $11.9 million, or $0.39 per diluted share, and for the fourth quarter of 2015, was $9.6 million, or $0.31 per diluted share. Net income available to common stockholders was $31.1 million, or $1.01 per diluted share for the full-year 2016 compared with $41.2 million, or $1.36 per diluted share, for the full-year 2015.

Highlights
             

  • Loan origination accelerated.  Gross loan fundings were $373.7 million for the 2016 fourth quarter, compared with $228.7 million for the sequential quarter. Net loan growth (fundings less paydowns and payoffs) was $130.3 million for the 2016 fourth quarter and $84.6 million for the sequential quarter. The loan pipeline remains solid heading into 2017.
     
  • Total deposits grew on a sequential quarter basis by an annualized 9.2%, reflecting annualized growth of 23.9% in noninterest-bearing deposits. The loan to deposit ratio was 106.3% at quarter-end, down from 111.0% one year ago.
     
  • Already sound asset quality metrics improved even further.  The nonaccrual loan ratio, excluding taxi loans, declined during the 2016 fourth quarter to 0.16% from 0.23% in the sequential prior quarter, while the total of nonperforming loans and TDRs (including the taxi medallion loans) declined by 31% to $81.0 million at year-end from $117.5 million at September 30, 2016, largely a result of the aforementioned charge-off of taxi medallion loans.
     
  • During the quarter, we successfully completed a secondary offering of common stock at $24.25 per share, resulting in net proceeds of approximately $38.1 million.  The offering resulted in higher capital ratios to support additional growth opportunities and increased tangible book value per share.
     
  • Tangible book value per share increased by 13.8% over the course of 2016 to $11.96 per share at December 31, 2016 from $10.51 at year-end 2015. The Company’s tangible common equity ratio increased to 8.93% from 8.18% a year ago.
     
  • We transferred our entire taxi medallion portfolio to the loans held-for-sale category from the loans held-for-investment portfolio.  It is management’s intention to sell the entire taxi portfolio, although no specific transaction has been agreed to or is pending at the present time.
     
  • Consistent with the Company’s recent 8-K disclosure and in conjunction with the aforementioned transfer of the taxi-medallion loans to held-for sale, the valuation of impaired loans secured by taxi medallions was reduced at December 31, 2016. The transfer of the loans at the lower of cost or market resulted in the charge-off of all specific reserves, $36.5 million, related to the impaired loans at the time of transfer.  Such charge-offs will provide a current tax benefit in the 2016 tax year at the present 35% statutory federal tax rate.

Frank Sorrentino, ConnectOne’s Chairman and CEO stated, “ConnectOne had another successful year in 2016 and we remain well positioned for increased long-term growth and profitability. Total shareholder return for the year, measured by stock price appreciation and cash dividends, was a healthy 40.4%, reflecting both financial sector and company specific performance.  We ended the year with significantly higher capital ratios and tangible book value per share, a lower loan-to-deposit ratio, a widening net interest margin, a robust pipeline of business activity and best-in-class efficiency.  We enter 2017 with an enhanced balance sheet and remain committed to executing against key operating objectives  including maintaining strong organic loan and deposit growth, delivering accelerated and sustainable earnings growth, improving return on equity, and building and refining our infrastructure.  I want to thank our customers, our board of directors, the executive management team, our entire staff, and, most importantly, our shareholders for continuing to support us throughout 2016 and making ConnectOne, truly, a better place to be.”

Operating Results

In addition to the results presented in accordance with Generally Accepted Accounting Principles ("GAAP"), ConnectOne routinely supplements its evaluation with an analysis of certain non-GAAP financial measures including net income available to common stockholders excluding non-core items. ConnectOne believes these non-GAAP financial measures, in addition to the related GAAP measures, provide meaningful information to investors in understanding our operating performance and trends, and facilitates comparisons with the performance of peers. Reconciliations of non-GAAP disclosures used in this earnings release to the comparable GAAP measures are provided in the accompanying tables.

Fourth quarter 2016 results reflect the following non-core items: $1.0 million of income resulting from accretion of purchase accounting fair value marks; $0.1 million in additional loan loss provision related to the maturity and extension of acquired portfolio loans; $24.0 million in additional provision associated with the Bank’s New York City taxi medallion loan portfolio; $0.1 million of pension settlement expenses, which had no impact on total stockholders’ equity or book value per share, and $0.2 million in amortization of intangible assets. Excluding these non-core items, along with related income tax impact, net income available to common stockholders was $12.3 million, or $0.40 per diluted share, for the fourth quarter of 2016, $12.0 million, or $0.40 per diluted share, for the third quarter of 2016, and $10.9 million, or $0.36 per diluted share, for the fourth quarter of 2015. 

Fully taxable equivalent net interest income for the fourth quarter of 2016 was $34.1 million, an increase of $0.4 million, or 1.1%, from the third quarter of 2016, resulting from a 4 basis-point widening of the net interest margin to 3.36% from 3.32%, and partially offset by slightly lower average interest-earning assets, reflecting securities sales at the end of the third quarter. Included in net interest income was accretion and amortization of purchase accounting adjustments of $1.0 million during the fourth quarter of 2016 and the third quarter of 2016.  Excluding these purchase accounting adjustments, the adjusted net interest margin was 3.27% in the fourth quarter of 2016, widening by 5 basis-points from the third quarter of 2016 adjusted net interest margin of 3.22%. The increase in the adjusted net interest margin was primarily attributable to an improved mix of interest-earning assets resulting from the above-mentioned securities sales.

Fully taxable equivalent net interest income for the fourth quarter of 2016 increased by $3.0 million, or 9.7%, from the same quarter of 2015. This was a result of a 12.7% increase in average interest-earning assets due to significant organic loan growth, partially offset by an 8 basis-point contraction of the net interest margin to 3.36% from 3.44%. Included in net interest income was accretion and amortization of purchase accounting adjustments of $1.0 million during the fourth quarter of 2016 and $1.4 million in the same quarter of 2015.  Excluding these purchase accounting adjustments, the adjusted net interest margin was 3.27% in the fourth quarter of 2016, contracting by 2 basis-points from the fourth quarter of 2015 adjusted net interest margin of 3.29%.  The reduction in the adjusted net interest margin was primarily attributable to higher level of cash balances held at the Federal Reserve Bank and an increase in rates paid on deposits.

Noninterest income totaled $1.6 million in the fourth quarter of 2016, $5.6 million in the third quarter of 2016 and $2.4 million in the fourth quarter of 2015. There were no net securities gains during the fourth quarter of 2016, and net securities gains were $4.1 million for the third quarter of 2016 and $1.1 million for the fourth quarter of 2015. Excluding the securities gains, noninterest income increased approximately $0.1 million from the prior sequential quarter and $0.3 million from the prior year fourth quarter.  The increase from the prior sequential quarter was primarily attributable to increases in income from BOLI.  The increase from the prior year fourth quarter was primarily attributable to increase in deposit, loan and other income of $0.2 million and $0.1 million in BOLI income.  Noninterest income also includes deposit fees, annuities and life insurance commissions, and gains on sales of residential mortgages in the secondary market. 

Noninterest expenses totaled $15.3 million for the fourth quarter of 2016, up approximately $0.7 million from $14.6 million for the third quarter of 2016.  The increase was primarily attributable to increases in salaries and employee benefits expense ($0.1 million), FDIC insurance premiums ($0.2 million), professional and consulting expenses ($0.2 million) and data processing ($0.1 million).  Noninterest expenses were up $1.7 million for the fourth quarter of 2016 when compared to $13.6 million for the fourth quarter of 2015.  The increase was largely attributable to increases in salaries and employee benefits ($0.7 million), occupancy and equipment ($0.3 million), FDIC insurance premiums ($0.4 million), data processing ($0.1 million) and other expense ($0.1 million).  The increases over the prior year fourth quarter were the result of increased levels of business and staff resulting from organic growth.

Due to a book loss for the fourth quarter, income taxes provided a benefit to earnings of $3.4 million for the fourth quarter of 2016.  This compares to an expense of $5.4 million for the third quarter of 2016 and $4.6 million for the fourth quarter of 2015.  The Company currently expects an effective corporate income tax rate of approximately 32% for 2017.

Asset Quality

The provision for loan and lease losses increased to $25.2 million in the fourth quarter of 2016 from $6.8 million in the third quarter of 2016, and from $5.1 million in the fourth quarter of 2015.  The increases were largely attributable to an increase in additional reserves specifically allocated to the Bank’s taxi medallion portfolio.

As of December 31, 2016, loans secured by taxi medallions totaled $65.6 million, representing 1.8% of total loans.  A charge-off of $36.5 million was taken during the quarter in conjunction with the transfer of taxi medallion loans to held-for-sale, based largely on a value of approximately $500,000 per corporate medallion loan.  During the quarter, the majority of the taxi portfolio ($63.0 million, or 96%) was designated as nonaccrual.  The entire taxi loan portfolio was concurrently designated as loans held-for-sale, reflecting management’s intent to sell the portfolio. 

Nonperforming assets, which includes nonaccrual loans and other real estate owned, were $69.4 million at December 31, 2016, $12.1 million at September 30, 2016 and $23.3 million at December 31, 2015. Nonperforming assets as a percent of total assets were 1.57% at December 31, 2016, 0.28% at September 30, 2016, and 0.58% at December 31, 2015.  The increase in this ratio was mainly attributable to the taxi medallion loans that were designated nonaccrual during the 2016 fourth quarter.  Excluding the taxi medallion loans, nonaccrual loans decreased to $5.7 million at December 31, 2016, from $7.9 million at September 30, 2016 and $20.7 million at December 31, 2015.

Annualized net charge-offs were 4.23% for the fourth quarter of 2016, 0.22% for the third quarter of 2016, and 0.00% for the fourth quarter of 2015. The increase in annualized net charge-offs from the sequential prior quarter and prior year fourth quarter was mainly attributable to a charge-off of $36.5 million related to the taxi medallion portfolio.  The allowance for loan and lease losses was $25.7 million, representing 0.74% of loans receivable and 37.4% of nonaccrual loans at December 31, 2016. At September 30, 2016, the allowance was $37.6 million representing 1.09% of loans receivable and 327.3% of nonaccrual loans, and at December 31, 2015, the allowance was $26.6 million representing 0.86% of loans receivable and 128.1% of nonaccrual loans.  The allowance as a percentage of nonaccruals (excluding taxi medallion loans) was 449.0% as of December 31, 2016, 478.8% as of September 30, 2016 and 128.1% as of December 31, 2015. In purchase accounting, any allowance for loan and lease losses on an acquired loan portfolio is reversed and a credit risk discount is applied directly to the acquired loan balances. In Management’s opinion, a useful non-GAAP metric is the ratio of allowance for loan and lease losses plus the credit risk discount to total loans receivable. This non-GAAP ratio was 1.02% at December 31, 2016, 1.39% at September 30, 2016, and 1.28% at December 31, 2015. (See Supplemental GAAP and non-GAAP Financial Measures).

Selected Balance Sheet Items

At December 31, 2016, the Company’s total assets were $4.4 billion, an increase of $410 million from December 31, 2015. Total loans at December 31, 2016 were $3.6 billion, reflecting net loan growth (loan originations less pay-downs and pay-offs, including loans held-for-sale) of $455 million from December 31, 2015, primarily attributable to multifamily ($169 million, including a $28 million loan reclassified during the first quarter of 2016 to multifamily from other commercial real estate), commercial and industrial (“C&I”) ($62 million), other commercial real estate ($69 million, including the aforementioned reclassification) and construction ($157 million), which reflected higher utilization of existing construction facilities.  The growth in loans was primarily funded with increases in deposits.

The Company’s stockholders’ equity was $531 million at December 31, 2016, an increase of $54 million from December 31, 2015. The increase in stockholders’ equity was primarily attributable to an increase of $38 million from a fourth quarter 2016 secondary offering of common stock, $22 million in retained earnings, approximately $3 million of equity issuance related to stock-based compensation, including the exercise of stock options, and an increase in accumulated other comprehensive income of $2 million, offset by an $11 million payoff of SBLF preferred stock. As of December 31, 2016, the Company’s tangible common equity ratio and tangible book value per share were 8.93% and $11.96, respectively. As of December 31, 2015, the tangible common equity ratio and tangible book value per share were 8.18% and $10.51, respectively. Total goodwill and other intangible assets were approximately $149 million and $150 million as of December 31, 2016 and December 31, 2015, respectively.

About ConnectOne Bancorp, Inc.

ConnectOne is a New Jersey corporation and a registered bank holding company pursuant to the Bank Holding Company Act of 1956, as amended, and serves as the holding company for ConnectOne Bank ("the Bank"). The Bank is a community-based, full-service New Jersey-chartered commercial bank that was founded in 2005. The Bank operates from its headquarters located at 301 Sylvan Avenue in the Borough of Englewood Cliffs, Bergen County, New Jersey, and through its 20 other banking offices.

For more information visit https://www.ConnectOneBank.com/.

Forward-Looking Statements

This news release contains certain forward-looking statements which are based on certain assumptions and describe future plans, strategies and expectations of the Company. These forward-looking statements are generally identified by use of the words "believe," "expect," "intend," "anticipate," "estimate," "project," or similar expressions. The Company's ability to predict results or the actual effect of future plans or strategies is inherently uncertain. Factors which could have a material adverse effect on the operations of the Company and its subsidiaries include, but are not limited to, those factors set forth in Item 1A – Risk Factors of the Company’s Annual Report on Form 10-K, as filed with the Securities Exchange Commission, and changes in interest rates, general economic conditions, legislative/regulatory changes, monetary and fiscal policies of the U.S. Government, including policies of the U.S. Treasury and the Federal Reserve Board, the quality or composition of the loan or investment portfolios, demand for loan products, deposit flows, competition, demand for financial services in the Company's market area and accounting principles and guidelines. These risks and uncertainties should be considered in evaluating forward-looking statements and undue reliance should not be placed on such statements. The Company does not undertake, and specifically disclaims any obligation, to publicly release the result of any revisions which may be made to any forward-looking statements to reflect events or circumstances after the date of such statements or to reflect the occurrence of anticipated or unanticipated events.

CONNECTONE BANCORP, INC. AND SUBSIDIARIES   
CONSOLIDATED CONDENSED STATEMENTS OF FINANCIAL CONDITION   
(dollars in thousands)   
 December 31, December 31,
  2016   2015 
    
ASSETS   
Cash and due from banks$  37,150  $  31,291 
Interest-bearing deposits with banks   163,249     169,604 
  Cash and cash equivalents   200,399     200,895 
    
Investment securities:   
  Available-for-sale   353,290     195,770 
  Held-to-maturity (fair value of $0 and $231)   -     224,056 
    
Loans held-for-sale   78,005     - 
    
Loans receivable   3,475,832     3,099,007 
Less: Allowance for loan and lease losses   25,744     26,572 
  Net loans receivable   3,450,088     3,072,435 
    
Investment in restricted stock, at cost   24,310     32,612 
Bank premises and equipment, net   22,075     22,333 
Accrued interest receivable   12,965     12,545 
Bank owned life insurance   98,359     78,801 
Other real estate owned   626     2,549 
Goodwill   145,909     145,909 
Core deposit intangibles   3,088     3,908 
Other assets   37,234     24,096 
  Total assets$  4,426,348  $  4,015,909 
    
LIABILITIES   
Deposits:   
  Noninterest-bearing$  694,977  $  650,775 
  Interest-bearing   2,649,294     2,140,191 
  Total deposits   3,344,271     2,790,966 
Borrowings   476,280     671,587 
Subordinated debentures (net of $621 and $812 in debt issuance costs)   54,534     54,343 
Other liabilities   20,231     21,669 
  Total liabilities   3,895,316     3,538,565 
    
COMMITMENTS AND CONTINGENCIES   
    
STOCKHOLDERS' EQUITY   
Preferred stock   -     11,250 
Common stock   412,726     374,287 
Additional paid-in capital   11,407     8,527 
Retained earnings   126,462     104,606 
Treasury stock   (16,717)    (16,717)
Accumulated other comprehensive loss   (2,846)    (4,609)
  Total stockholders' equity   531,032     477,344 
  Total liabilities and stockholders' equity$  4,426,348  $  4,015,909 
    

 

CONNECTONE BANCORP, INC. AND SUBSIDIARIES        
CONSOLIDATED STATEMENTS OF INCOME        
(dollars in thousands, except for per share data)         
          
   Three Months Ended December 31,   Twelve Months Ended December 31,  
   2016    2015   2016   2015  
Interest income         
  Interest and fees on loans $  38,600  $  33,686 $  147,982 $  125,493 
  Interest and dividends on investment securities:         
  Taxable    1,389     2,325    7,266    10,665 
  Tax-exempt    959     884    3,827    3,550 
  Dividends    336     284    1,410    1,081 
  Interest on federal funds sold and other short-term investments   215     51    756    178 
  Total interest income    41,499     37,230    161,241    140,967 
Interest expense         
  Deposits    5,135     3,776    18,667    13,756 
  Borrowings    2,957     2,998    12,429    10,058 
  Total interest expense    8,092     6,774    31,096    23,814 
          
Net interest income    33,407     30,456    130,145    117,153 
  Provision for loan and lease losses    25,200     5,055    38,700    12,605 
Net interest income after provision for loan and lease losses   8,207     25,401    91,445    104,548 
          
Noninterest income         
  Annuities and insurance commissions    51     32    191    242 
  Income on bank owned life insurance    715     620    2,559    1,782 
  Net gains on sale of loans held-for-sale    86     51    232    327 
  Deposit, loan and other income    721     522    2,704    2,667 
  Insurance recovery    -     -    -    2,224 
  Net gains on sale of investment securities    -     1,138    4,234    3,931 
  Total noninterest income    1,573     2,363    9,920    11,173 
          
Noninterest expenses         
  Salaries and employee benefits    7,888     7,205    31,130    27,685 
  Occupancy and equipment    2,122     1,802    8,571    7,587 
  FDIC insurance    985     575    2,940    2,110 
  Professional and consulting    901     906    2,979    2,951 
  Marketing and advertising    222     213    1,040    847 
  Data processing    1,106     1,017    4,141    3,703 
  Loss on extinguishment of debt    -     -    -    2,397 
  Amortization of core deposit intangible    193     217    820    917 
  Other expenses    1,835     1,644    6,886    6,287 
  Total noninterest expenses    15,252     13,579    58,507    54,484 
          
(Loss) income before income tax expense    (5,472)    14,185    42,858    61,237 
  Income tax (benefit) expense    (3,448)    4,617    11,776    19,926 
Net (loss) income    (2,024)    9,568    31,082    41,311 
  Less: Preferred stock dividends    -     28    22    112 
Net (loss) income available to common stockholders$  (2,024) $  9,540 $  31,060 $  41,199 
          
(Loss) earnings per common share:         
  Basic $  (0.07) $  0.32 $  1.02 $  1.38 
  Diluted    (0.07)    0.31    1.01    1.36 
Weighted average common shares outstanding:         
  Basic    30,440,371     30,033,062    30,382,255    29,938,458 
  Diluted    30,729,359     30,310,905    30,676,393    30,283,966 
Dividends per common share $  0.075  $  0.075 $  0.300 $  0.300 
          

 

ConnectOne's management believes that the supplemental financial information, including non-GAAP measures, provided below is useful to investors. The non-GAAP measures should not be viewed as a substitute for financial results determined in accordance with GAAP, and are not necessarily comparable to non-GAAP financial measures presented by other companies. 
          
CONNECTONE BANCORP, INC.         
SUPPLEMENTAL GAAP AND NON-GAAP FINANCIAL MEASURES         
(dollars in thousands, except share data)         
 As of
 Dec. 31, Sept. 30, June 30, Mar. 31, Dec. 31,
  2016   2016   2016   2016   2015 
Selected Financial Data         
Total assets$  4,426,348  $  4,327,804  $  4,262,914  $  4,091,000  $  4,015,909 
Loans receivable:         
  Commercial   554,065     644,430     630,425     601,708     570,116 
  Commercial real estate-other   1,154,154     1,139,641     1,104,214     1,087,388     1,085,615 
  Commercial real estate-multifamily   1,050,067     961,163     967,555     940,913     881,081 
  Commercial construction   486,228     471,109     443,277     402,594     328,838 
  Residential   232,547     229,401     230,497     231,319     233,690 
  Consumer   2,380     2,879     1,976     1,851     2,454 
  Gross loans   3,479,441     3,448,623     3,377,944     3,265,773     3,101,794 
Unearned net origination fees   (3,609)    (3,147)    (2,324)    (1,960)    (2,787)
  Loans receivable   3,475,832     3,445,476     3,375,620     3,263,813     3,099,007 
  Loans held-for-sale   78,005     15,112     360     -     - 
Total loans   3,553,837     3,460,588     3,375,980     3,263,813     3,099,007 
          
Securities available-for-sale   353,290     338,459     208,266     191,331     195,770 
Securities held-to-maturity   -     -     214,718     219,373     224,056 
Goodwill and other intangible assets   148,997     149,190     149,383     149,600     149,817 
Deposits:         
 Noninterest-bearing   694,977     655,683     648,664     614,508     650,776 
 Interest-bearing   563,740     531,500     523,742     517,809     490,380 
 Savings   205,551     207,717     210,040     219,865     216,399 
 Money market   911,867     866,710     866,643     678,222     658,695 
 Time deposits   968,136     1,007,339     951,904     862,667     774,717 
Total deposits   3,344,271     3,268,949     3,200,993     2,893,071     2,790,967 
          
Borrowings   476,280     481,337     496,414     646,501     671,587 
Subordinated debentures (net of issuance costs)   54,534     54,490     54,441     54,392     54,343 
Total stockholders' equity   531,032     499,588     484,414     474,727     477,344 
          
Quarterly Average Balances         
Total assets$  4,349,961  $  4,344,796  $  4,212,307  $  4,034,375  $  3,891,885 
Loans receivable:         
  Commercial   644,263     632,892     626,902     585,773     579,512 
  Commercial real estate (including multifamily)   2,130,955     2,081,741     2,056,263     2,005,872     1,919,263 
  Commercial construction   479,342     462,399     418,769     361,108     313,223 
  Residential   229,738     229,953     231,553     236,404     232,022 
  Consumer   2,777     2,771     2,865     2,670     3,269 
  Gross loans   3,487,075     3,409,756     3,336,352     3,191,827     3,047,289 
Unearned net origination fees   (3,151)    (2,956)    (2,295)    (2,397)    (2,706)
  Loans receivable   3,483,924     3,406,800     3,334,057     3,189,430     3,044,583 
  Loans held-for-sale   4,549     478     395     142     468 
Total loans   3,488,473     3,407,278     3,334,452     3,189,572     3,045,051 
          
Securities available-for-sale   351,809     269,895     202,103     222,776     219,927 
Securities held-to-maturity   -     143,146     218,220     194,474     225,875 
Goodwill and other intangible assets   149,123     149,317     149,525     149,741     149,959 
Deposits:         
 Noninterest-bearing   666,913     640,323     581,743     609,312     608,227 
 Interest-bearing   534,127     553,401     528,954     503,896     476,237 
 Savings   205,477     211,162     215,267     215,491     216,149 
 Money market   891,764     872,937     791,845     656,557     636,180 
 Time deposits   985,944     1,007,530     889,561     807,801     783,068 
Total deposits   3,284,225     3,285,353     3,007,370     2,793,057     2,719,861 
          
Borrowings   476,925     488,015     639,054     684,469     617,024 
Subordinated debentures   55,155     55,155     55,155     55,155     55,155 
Total stockholders' equity   511,663     495,141     483,519     482,503     478,919 
 Three Months Ended
 Dec. 31, Sept. 30, June 30, Mar. 31, Dec. 31,
GAAP Earnings Data 2016   2016   2016   2016   2015 
Net interest income$  33,407  $  33,024  $  32,394  $  31,320  $  30,456 
 Provision for loan and lease losses   25,200     6,750     3,750     3,000     5,055 
Net interest income after provision for loan and lease losses   8,207     26,274     28,644     28,320     25,401 
Noninterest income         
 Annuity and insurance commissions   51     68     32     40     32 
 Bank-owned life insurance   715     615     616     612     620 
 Net gains on sale of loans held-for-sale   86     56     56     35     51 
 Deposit, loan and other income   721     706     763     515     522 
 Net gains on sale of investment securities   -     4,131     103     -     1,138 
  Total noninterest income   1,573     5,576     1,570     1,202     2,363 
Noninterest expenses         
 Salaries and employee benefits   7,888     7,791     7,753     7,599     7,205 
 Occupancy and equipment   2,122     2,049     2,154     2,247     1,802 
 FDIC insurance   985     745     615     595     575 
 Professional and consulting   901     667     700     711     906 
 Marketing and advertising   222     293     250     184     213 
 Data processing   1,106     1,002     1,010     1,024     1,017 
 Amortization of core deposit intangible   193     193     217     217     217 
 Other expenses   1,835     1,811     1,653     1,776     1,644 
  Total noninterest expenses   15,252     14,551     14,352     14,353     13,579 
          
(Loss) Income before income tax expense   (5,472)    17,299     15,862     15,169     14,185 
 Income tax (benefit) expense   (3,448)    5,443     5,003     4,778     4,617 
Net (loss) income (GAAP)$  (2,024) $  11,856  $  10,859  $  10,391  $  9,568 
Less: preferred dividends   -      -      -      22     28 
Net (loss) income available to common stockholders (GAAP)$  (2,024) $  11,856  $  10,859  $  10,369  $  9,540 
          
Reconciliation of GAAP Earnings to Operating Earnings         
Net gains on sales of securities$  -  $  (4,131) $  (103) $  -  $  (1,138)
Partial settlements of pension obligation   67     69     87     103     106 
Amortization of intangible assets   193     193     217     217     217 
Provision related to maturity and extension of acquired portfolio loans   100     220     229     397     512 
Provision related to taxi cab medallion loans   24,000     5,000     1,750     1,487     2,500 
Provision for pending disposition of  Union Center operations bldg.   -     -     -     -     1,304 
Accretion of purchase accounting fair value marks   (991)    (1,077)    (1,277)    (1,367)    (1,416)
Non-core items   23,369     274     903     837     2,085 
Non-core items income tax benefit   9,086     99     326     301     751 
Non-core items, after taxes   14,283     175     577     536     1,334 
Core earnings available to common stockholders (non-GAAP)$  12,259  $  12,031  $  11,436  $  10,905  $  10,874 
Weighted average diluted shares outstanding   30,729,359     30,401,684     30,340,376     30,257,676     30,310,905 
Diluted (loss) earnings per share (GAAP)$  (0.07) $  0.39  $  0.36  $  0.34  $  0.31 
Core Diluted earnings per share (Non-GAAP) (1)   0.40     0.40     0.38     0.36     0.36 
          
Return on Assets Measures         
Core earnings available to common stockholders (non-GAAP)$  12,259  $  12,031  $  11,436  $  10,905  $  10,874 
Add: preferred dividends   -      -      -      22     28 
Core net income (non-GAAP)$  12,259  $  12,031  $  11,436  $  10,927  $  10,902 
Average assets$  4,349,961  $  4,344,796  $  4,212,307  $  4,034,375  $  3,891,885 
Less: average intangible assets   (149,123)    (149,317)    (149,525)    (149,741)    (149,959)
Average tangible assets$  4,200,838  $  4,195,479  $  4,062,782  $  3,884,634  $  3,741,926 
Return on avg. assets (GAAP) -0.19%  1.09%  1.04%  1.04%  0.98%
Core return on avg. assets (Non-GAAP) (2) 1.12%  1.10%  1.09%  1.09%  1.11%
Return on avg. tangible assets (Non-GAAP) (3) -0.18%  1.14%  1.09%  1.09%  1.03%
Core return on avg. tangible assets (Non-GAAP) (4) 1.16%  1.14%  1.13%  1.13%  1.16%
_____         
(1) Represents core earnings available to common stockholders divided by weighted average diluted shares outstanding.    
(2) Core net income divided by average assets.         
(3) Net income excluding amortization of intangible assets divided by average tangible assets.      
(4) Core net income divided by average tangible assets.         
 Three Months Ended
 Dec. 31, Sept. 30, June 30, Mar. 31, Dec. 31,
  2016   2016   2016   2016   2015 
Return on Equity Measures         
Core earnings available to common stockholders$  12,259  $  12,031  $  11,436  $  10,905  $  10,874 
          
Average common equity$  511,663  $  495,141  $  483,519  $  473,849  $  467,669 
Less: average intangible assets   (149,123)    (149,317)    (149,525)    (149,741)    (149,959)
Average tangible common equity$  362,540  $  345,824  $  333,994  $  324,108  $  317,710 
          
Return on avg. common equity (GAAP) -1.57%  9.53%  9.03%  8.80%  8.09%
Core return on avg. common equity (non-GAAP) (5) 9.53%  9.67%  9.51%  9.26%  9.23%
Return on avg. tangible common equity (non-GAAP) (6) -2.10%  13.77%  13.23%  13.03%  12.07%
Core return on avg. tangible common equity (non-GAAP) (7) 13.45%  13.84%  13.77%  13.53%  13.58%
          
Efficiency Measures         
Total noninterest expenses$  15,252  $  14,551  $  14,352  $  14,353  $  13,579 
Partial settlements of pension obligation   (67)    (69)    (87)    (103)    (106)
Foreclosed property expense   (81)    (37)    10     (167)    (387)
Amortization of intangible assets and fair value marks   (193)    (193)    (217)    (217)    (217)
Operating noninterest expense $  14,911  $  14,252  $  14,058  $  13,866  $  12,869 
          
Net interest income (FTE)$  34,120  $  33,762  $  33,112  $  31,985  $  31,102 
Impact of purchase accounting fair value marks   (960)    (1,045)    (1,245)    (1,335)    (1,384)
Noninterest income   1,573     5,576     1,570     1,202     2,363 
Net gains on sales of securities   -     (4,131)    (103)    -     (1,138)
Operating revenue $  34,733  $  34,162  $  33,334  $  31,852  $  30,943 
          
Operating efficiency ratio (non-GAAP) (8) 42.9%  41.7%  42.2%  43.5%  41.6%
          
Net Interest Margin         
Average interest-earning assets$  4,038,030  $  4,041,020  $  3,912,802  $  3,728,958  $  3,582,408 
          
Net interest income (FTE)$  34,120  $  33,762  $  33,112  $  31,985  $  31,102 
Impact of purchase accounting fair value marks   (960)    (1,045)    (1,245)    (1,335)    (1,384)
Adjusted net interest income$  33,160  $  32,717  $  31,867  $  30,650  $  29,718 
          
Net interest margin (GAAP) 3.36%  3.32%  3.40%  3.45%  3.44%
Adjusted net interest margin (non-GAAP) (9) 3.27%  3.22%  3.28%  3.31%  3.29%
_____         
(5) Core earnings available to common stockholders divided by average common equity.      
(6) Earnings available to common stockholders excluding amortization of intangibles divided by average tangible common equity.  
(7) Core earnings available to common stockholders divided by average tangible common equity.      
(8) Operating noninterest expense divided by operating revenue.         
(9) Adjusted net interest income divided by average interest-earning assets.        
 As of
 Dec. 31, Sept. 30, June 30, Mar. 31, Dec. 31,
(dollars in thousands, except share data) 2016   2016   2016   2016   2015 
Capital Ratios and Book Value per Share         
Common equity$  531,032  $  499,588  $  484,414  $  474,727  $  466,094 
Less: intangible assets   (148,997)    (149,190)    (149,383)    (149,600)    (149,817)
Tangible common equity$  382,035  $  350,398  $  335,031  $  325,127  $  316,277 
          
Total assets$  4,426,348  $  4,327,804  $  4,262,914  $  4,091,000  $  4,015,909 
Less: intangible assets   (148,997)    (149,190)    (149,383)    (149,600)    (149,817)
Tangible assets$  4,277,351  $  4,178,614  $  4,113,531  $  3,941,400  $  3,866,092 
          
Common shares outstanding   31,944,403     30,197,318     30,197,318     30,163,078     30,085,663 
          
Common equity ratio (GAAP) 12.00%  11.54%  11.36%  11.60%  11.61%
Tangible common equity ratio (non-GAAP) (10) 8.93%  8.39%  8.14%  8.25%  8.18%
          
Regulatory capital ratios (Bancorp):         
  Leverage ratio 9.29%  8.49%  8.52%  8.66%  9.07%
  Common equity Tier 1 risk-based ratio 9.74%  9.25%  9.10%  9.06%  9.14%
  Risk-based Tier 1 capital ratio 9.87%  9.38%  9.23%  9.20%  9.61%
  Risk-based total capital ratio 11.78%  11.69%  11.44%  11.36%  11.77%
          
Regulatory capital ratios (Bank):         
  Leverage ratio 10.34%  9.57%  9.62%  9.83%  9.96%
  Common equity Tier 1 risk-based ratio 10.98%  10.58%  10.43%  10.45%  10.55%
  Risk-based Tier 1 capital ratio 10.98%  10.58%  10.43%  10.45%  10.55%
  Risk-based total capital ratio 11.63%  11.57%  11.30%  11.24%  11.31%
          
Book value per share (GAAP)$  16.62  $  16.54  $  16.04  $  15.74  $  15.49 
Tangible book value per share (non-GAAP) (11)   11.96     11.60     11.09     10.78     10.51 
          
 Three Months Ended
 Dec. 31, Sept. 30, June 30, Mar. 31, Dec. 31,
  2016   2016   2016