Connectone Bancorp, Inc. · NASDAQ:CNOB
Connectone Bancorp — Investor Presentation (January 2020)
29 slides from Connectone Bancorp's investor presentation, Jan 29, 2020
Slide 1: CNOB January 2020 Investor Presentation
CNOB January 2020 Investor Presentation
Slide 2: Forward-looking statements
This presentation contains forward - looking statements . Any statements about our expectations, beliefs, plans, predictions, forecasts, objectives, assumptions or future events or performance are not historical facts and may be forward - looking . These statements are often, but not always, made th
Slide 3: About ConnectOne Bancorp, Inc.
About ConnectOne Bancorp, Inc. o People first and sense of urgency in every business decision from top to bottom of organization Strong Culture Founded in 2005 to capitalize on poor customer service offered to middle market clients by other institutions Over $7 Billion* in Total Assets ConnectOne is
Slide 4: Strong Markets, Attractive Franchise
Strong Markets, Attractive Franchise Strategically placed offices throughout NY/NJ metro area 4 The market we operate in accounts for approximately $1.7 trillion of the $19 trillion United States GDP Market is largely dominated by the largest institutions in the country, leaving tremendous opportuni
Slide 5: Market Expansion Through M&A: Acquisition of Greater Hudson Bank
Market Expansion Through M&A Acquisition of Greater Hudson Bank 5 Completed transaction on January 2, 2019 and integrated systems less than 30 days after closing Transaction added approximately $375 million in loans and $425 million in deposits Demonstrates ConnectOne’s expertise as a skilled acquir
Slide 6: Leverage Infrastructure Through M&A: Acquisition of Bancorp of New Jersey
Leverage Infrastructure Through M&A Acquisition of Bancorp of New Jersey (BKJ) 6 Passaic Bergen Essex Hudson Manhattan Bronx Westchester Rockland Queens CNOB (28) BKJ (9) Branch Overlap Distance Branches % of Franchise < 1 mi: 5 55.6% < 2 mi: 8 88.9% < 5 mi: 9 100.0% ▪ Completed In - Market Acquisit
Slide 7: Innovation Through M&A: Acquisition of BoeFly
BoeFly is a Boston/New York City based FinTech company. With dynamic patented technology, BoeFly q ualifies potential franchisees and provides access to funding through a digital marketplace. 7 Innovation Through M&A Acquisition of BoeFly , completed 2Q 2019 BoeFly operates as an independent subsidi
Slide 8: High Operating Performance
High Operating* Performance ROAA 8 1.36% 41.8% 3.36% 15.0% 9.5% Trailing 12 - Month Return Metrics T1 Leverage Ratio NIM ROATCE Efficiency Ratio * Excludes the impact of charges related to the Bank's taxi medallion portfolio and non - operating items including net gains on sal es of securities, merg
Slide 9: Proven Track Record of Growth & Performance
Proven Track Record of Growth & Performance 9 Dollars in billions, except for per share data $10.51 $11.96 $13.01 $14.42 $16.06 12/31/15 12/31/16 12/31/17 12/31/18 12/31/19 Tangible Book Value Per Share $3.3 $3.8 $4.1 $4.8 $3.6 $4.2 $4.5 $5.1 $4.4 $5.1 $5.5 $6.2 12/31/16 12/31/17 12/31/18 12/31/19 D
Slide 10: Efficient Banking Model
Investments in technology enhance our deposit & loan gathering abilities Reflects structural uniqueness of ConnectOne Peer* Median: $6.5 MM We are ~2.5x peer median for: o Deposits per branch office o Loans per branch office o A ssets per branch office Efficient Banking Model One of the Best Efficie
Slide 11: Diversified Loan Portfolio
11 Diversified Loan Portfolio As of 12/31/19 - $5.1 Billion Other CRE 33% Multifamily 30% Business Loans 31% Residential/ Consumer 6% Type Balance Percentage Type Balance Percentage CRE - Other / Misc $309 ±¸ OOC - Warehouse / Industrial $132 ® ¸ CRE - Retail 293 ±¸ OOC - Office 98 ¸ CRE - Land Loa
Slide 12: Diversification & Expansion Through C&I Lending
Diversification & Expansion Through C&I Lending C&I Loan Portfolio 12 Formidable Competitor In 5 years, we’ve built a profitable and valuable C&I lending platform 30 + Team Members Key hires with focused C&I specialties Note: excludes taxi medallion loans Niche Markets Added capabilities to further
Slide 13: A Track Record of Solid Credit Underwriting
13 A Track Record of Solid Credit Underwriting o Disciplined LTV & DSC standards o Loan origination process supported by specialized teams of credit analysts o High quality direct commercial lending o No reliance on participations or wholesale loan purchases o Prudent growth Comprehensive underwriti
Slide 14: Deposit Franchise
Deposit Franchise 14 Deposit Composition 12/31/2019 Total Deposits $4.8 Billion 2019 Cost of Total Deposits 1.41% Demand Noninterest - bearing 18% Demand Interest - bearing 23% Money Market 23% Savings 3% Time 33% $- $500 $1,000 $1,500 $2,000 $2,500 $3,000 $3,500 $4,000 $4,500 $5,000 Year Ended 2016
Slide 15: Business Generation
15 Business Generation Experienced CRE Lenders & Support Staff o Focus towards owner - occupied lending Broadening Focus on C&I by Building Business Niches o Independent Schools Division o ~40% of New Jersey Independent Schools are clients o Opportunities for expansion into NY, PA & CT o Municipal D
Slide 16: Capital Allocation & Philosophy
Strongly capitalized o 9.38% TCE holding company o 10.80% leverage at bank o 12.63% total risk based at bank ROATCE target 15+% Stock buyback program commenced in 1 st quarter of 2019 o Repurchased approximately 50% of 1.2 million authorized shares Capital Allocation & Philosophy 16 Increased quarte
Slide 17: Strategy & Vision
Strategy & Vision Continued Growth The Company remains well - positioned to execute Achieving Prudent Growth 17 Increasing & Expanding Commercial Client Relationships Expanding Our Presence in the New York & New Jersey Metro Market Maintaining Best - in - Class Efficiency Continuing Branch Rationali
Slide 18: Client Testimonials
“ ,, ,, ConnectOne Bank was our recipe for success! Their responsive and creative management team offered us all the necessary ingredients to expand and serve our community of chefs, restaurants & food lovers. “ Client Testimonials 18 President | James Beard Foundation Susan Ungaro “ ,, The responsi
Slide 19: ConnectOne Bancorp, Inc.
& ConnectOne Bancorp, Inc.
Slide 20: Appendix
& ConnectOne Bancorp, Inc. Appendix
Slide 21: Commercial Real Estate Lending Focus
Commercial Real Estate Lending Focus 21 o ConnectOne has maintained high levels of CRE concentration for an extended period of time o Our combination of strong organic growth and sound asset quality is our hallmark o We continue to focus on loan diversification – Concentration mitigated by accelerat
Slide 22: Credit Quality
Credit Quality 22 1.27% 0.99% 1.36% 0.99% 0.95% 0.44% 0.34% 0.39% 0.43% 0.42% 0.95% 0.79% 0.82% 0.85% 0.80% 0.00% 0.50% 1.00% 1.50% 2.00% 2.50% 3.00% 12/31/18 3/31/19 6/30/19 9/30/19 12/31/19 NPAs/Total Assets (excluding taxi) NPAs/Total Assets
Slide 23: Loan Funding Metrics
Loan Funding Metrics 23 Trailing Quarterly Loan Fundings Note: First Quarter 2019 includes Greater Hudson. Rate excludes impact of purchase accounting adjustments. $374 $759 $373 $381 $428 $295 $327 $256 $328 $426 $79 $432 $117 $53 $2 5.47% 5.53% 5.35% 5.28% 4.79% 0.00% 0.75% 1.50% 2.25% 3.00% 3.75%
Slide 24: Reconciliation of GAAP and non-GAAP measures
Appendix Reconciliation of GAAP and non - GAAP measures 24 24 Dec. 31, Sept. 30, June 30, Mar. 31, Dec. 31, Trailing Twelve 2019 2019 2019 2019 2018 Months Reconciliation of GAAP Earnings to Earnings Excluding the Following Items: Net income 20,783$ 21,696$ 19,281$ 11,635$ 18,672$ 73,395$ Merger exp
Slide 25: Reconciliation of GAAP and non-GAAP measures (cont.)
25 Appendix Reconciliation of GAAP and non - GAAP measures (cont.) Dec. 31, Sept. 30, June 30, Mar. 31, Dec. 31, Trailing Twelve 2019 2019 2019 2019 2018 Months Return on Equity Measures Net income-adjusted 21,446$ 21,056$ 20,179$ 17,132$ 19,148$ 79,813$ Average common equity 732,173$ 714,002$ 694,9
Slide 26: Reconciliation of GAAP and non-GAAP measures (cont.)
26 Appendix Reconciliation of GAAP and non - GAAP measures (cont.) Dec. 31, Sept. 30, June 30, Mar. 31, Dec. 31, 2019 2019 2019 2019 2018 Capital Ratios and Book Value per Share Common equity 731,190$ 720,160$ 699,224$ 682,395$ 613,927$ Less: intangible assets (168,034) (168,374) (168,714) (162,747)
Slide 27: Reconciliation of GAAP and non-GAAP measures (cont.)
27 Appendix Reconciliation of GAAP and non - GAAP measures (cont.) Dec. 31, Sept. 30, June 30, Mar. 31, Dec. 31, Trailing Twelve 2019 2019 2019 2019 2018 Months Net Interest Margin Average interest-earning assets 5,663,538$ 5,649,058$ 5,607,086$ 5,522,934$ 4,941,425$ 5,611,144$ Net interest income (
Slide 28: Reconciliation of GAAP and non-GAAP measures (cont.)
28 Appendix Reconciliation of GAAP and non - GAAP measures (cont.) Dec. 31, Sept. 30, June 30, Mar. 31, Dec. 31, 2019 2019 2019 2019 2018 Asset Quality Nonaccrual taxi medallion loans 23,431$ 25,802$ 26,498$ 27,287$ 28,043$ Nonaccrual loans (excluding taxi medallion loans) 26,050 25,519 23,419 20,39
Slide 29: Reconciliation of GAAP and non-GAAP measures (cont.)
29 Appendix Reconciliation of GAAP and non - GAAP measures (cont.) (1) Represents adjusted earnings available to common stockholders divided by weighted average diluted shares outstanding. (2) Adjusted net income divided by average assets. (3) Adjusted earnings available to common stockholders divid
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