ConnectOne Bancorp, Inc. (NASDAQ:CNOB) Q2 2020 Earnings Conference Call - Final Transcript
Jul 30, 2020 • 10:00 am ET
Frank S. Sorrentino III
provisioning, we're essentially matching our reserves from the first quarter. We now have close to $28 million in reserves for issues related to the pandemic should they arise, bringing our total reserves or loans to approximately 1.08%. Bill will have a little bit more to say about the provision in the reserves a little later on in this presentation. Despite the large reserve build, we still managed to grow our tangible book value per share to $16.28. Overall, we continue to navigate through the pandemic in a solid forward-looking fashion, which is a testament to the resilience of our team and our relationship banking model.
Operationally, we've adopted a comprehensive return-to-work strategy with a heavy focus on leveraging our technology, including reopening our offices with enhanced contactless solutions. While we're taking gradual steps to return to normalcy, we've also learned through this pandemic how to best serve our clients, whether that's in person or through our digital channels. And in turn, our clients have shown less reliance on our physical locations. The investments we've made in financial technology and in our infrastructure over the past few years has played a critical role in competitively positioning ConnectOne's virtual hybrid bank model, while the environment that COVID created has accelerated the transition to our digital banking products for many of our clients.
Additionally, as we move into the future state of banking in the digital world, we're excited to further leverage our strong technological foundation to take advantage of new opportunities. Most recently, we partnered with nCino to launch a virtual portal to digitize the Paycheck Protection Program forgiveness process, which is now available to our borrowers under the program. As you know, we were an active participant in the SBA's Paycheck Protection Program, funding over $470 million of loans. I'm very proud of our team for quickly responding to our clients' needs, especially in this time of crisis.
And while some banks consider these loans as giving up economics, our Paycheck Protection Program loans are generally done with existing clients. And we believe, it's a service necessary to provide in order to ensure the continuity of our clients' businesses. Bill will touch a little bit on the economic impacts of that program momentarily. On another front, FinTech subsidiary BoeFly also performed very well providing a new channel for lending in the Paycheck Protection Program. Separately from ConnectOne, they process over $400 million in loans to over 15 banks and we believe their growing momentum will extend beyond the Paycheck Protection Program as skills learned will be applied to pursuing additional opportunities in the future.
Also, BoeFly generally has done best in times of higher-than-normal unemployment when folks who are laid off decide to start a business and we expect to see a pickup in business there once stabilization begins with the COVID pandemic. We also worked with some of our borrowers by helping them through challenges that have resulted from the pandemic. As of June 30, we had approximately $930 million