ConnectOne Bancorp(US:CNOB)2021-10-30 08:04Financial Data and Key Metrics Changes - The company reported a return on assets of 1.62% and a return on tangible common equity of 16.9% [8] - Pre-provision net revenue increased to 2.23% of average assets, with quarterly sequential annualized loan growth net of PPP at 21% [8][21] - The quarterly cash dividend was raised to $0.13, an 18% increase from the last quarter and a 44% increase from a year ago [10] Business Line Data and Key Metrics Changes - Non-interest revenue sources showed positive momentum, particularly in the SBA platform and commercial real estate loans [11] - The FinTech subsidiary, BoeFly, is generating more traffic and scaling its competitive position [12] Market Data and Key Metrics Changes - The company has about $100 million in footings in Florida, indicating growth potential in that market [36] - The New York Metro economy is rebounding, providing opportunities for proactive growth [8] Company Strategy and Development Direction - The company is focused on enhancing its competitive position in New York and expanding into South Florida [13][14] - There is a strategic emphasis on organic growth while maintaining strong credit standards and margin discipline [9][60] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to navigate potential economic slowdowns and interest rate changes [46][48] - The outlook for loan growth in 2022 is projected at approximately 10%, with expectations of some headwinds [30][49] Other Important Information - Operating expenses increased by 7% sequentially, primarily due to hiring and investments in infrastructure [26] - The efficiency ratio remained below 40%, indicating strong operational capabilities [26] Q&A Session Summary Question: What are the plans for the Florida team and office? - The company has about $100 million in footings in Florida and plans to open a full-service office there [36] Question: How does the company view growth in Florida compared to the Northeast? - Management sees Florida as a growing market due to favorable tax status and demographic trends, with potential for significant growth [38][70] Question: What is the outlook for loan growth next year? - The company expects loan growth to be around 10%, with a disciplined approach to maintaining credit quality and margins [49][60] Question: What is the status of the buyback program? - The buyback program is seen as opportunistic, depending on growth and share price [41] Question: How is the company managing credit quality in the Metro New York area? - Management acknowledged some isolated credit issues but emphasized strong overall credit quality and proactive management [53] Question: What is the outlook for multifamily lending? - The multifamily market remains strong, but management is cautious about potential overheating and rising interest rates [78]