Connectone Bancorp, Inc. · NASDAQ:CNOB
Connectone Bancorp — Investor Presentation (November 2022)
28 slides from Connectone Bancorp's investor presentation, Nov 9, 2022
Slide 1: ConnectOne Bancorp, Inc. Investor Presentation
& ConnectOne Bancorp, Inc. CNOB Investor Presentation November 2022
Slide 2: About ConnectOne Bancorp, Inc.
About ConnectOne Bancorp, Inc. Connectone Bank, BoeFly ‘witha focus on small to middle-market businesses, “branchvte" model, making for highly network of partner banks. i $9.5 Billion in Total Assets imide market clients by other institutions I Commercial Clients a Primary Focus 90% of oan portfolio
Slide 3: High Operating Performance: 2022 Q3 Financial Highlights
High Operating Performance 2022 Q3 Financial Highlights 3.68% Net interest Margin
Slide 4: Strong Core Net Interest Margin
Strong Core Net Interest Margin a am ae rer a va 1298 1.08% One 0.58% 0.49% 0.55% og zor" zorey? aoisy! zoz0y" 2oziy! 19227 2922? 29227 oe SRT eM 3.36% 3.09% eee 302% 7 a 7 2 2 2 2017¥ 2018Y 20197" 2020¥ 2oz1y 1922 2022 3022 ‘Sexe: Company Figs fe 1a np ate fe el pees ceecnon 2 Repco ues nde Mach 1,
Slide 5: Robust Profitability and Capital Generation
Robust Profitability and Capital Generation Return on Average Assets 169% Ta 0.93 ad 0.95% 0.82% zor7v 2018Y 2019 2020v 2021Y 1022 2022 3022 2 cNon eo Peers(t) Sec: Compan logs SUP ltl ate ince War Passat oo aah eanonen end, Tangible Book Value per Share Growth zor7y —201BY —-2019Y 2020 zo2IY 3022 B
Slide 6: Non-Interest Income
Non-Interest Income Diversification of Revenue Minimal dependency on income streams subject to regulatory pressures BoeFly + Strong fee income momentum + Growing ‘opportunities to expand product set Gains on Sale SBA Division + Commercial Residential + Interchange fees + Overdraft fees Maintenance f
Slide 7: Diversified and Granular Loan Portfolio
Diversified and Granular Loan Portfolio (Sin millions) Select Loan Portfolio Details as of September 30, 2022 segment om Construction wea? Multifamily | $2,628 | Non-owner Occupied CRE ~ Sayocesanen | cok en weno econ ft Business Loans | $2,090 | 27% Other (09. 1-4 Family and Consumer): $256 3% Tata
Slide 8: Loan Portfolio Detail
Loan Portfolio Detail (erctudes Per) '$ in millions) Residential/ numer, 3% Other CRE, 37% ow uber myo sam 10% og See Cana ings Rou gon Company Oeoptans E-Retall RE- Other Mise os ® E-ofice m8 RE- Warehouse industri oy ° RE Mined Ute ws 2 E- Land Loan forFature peveopment as 2 2 a fetal cRE- non-own
Slide 9: High Quality Asset Composition and Reserves
High Quality Asset Composition and Reserves Loan Loss Reserves / Loans Receivable Nonperforming As: 10% 1am Lise 158 ae 168 099% oso ose | 07m orm 7 076% | | ii ost | | | cE om ces ORS ON olin ce Gem, 2ov7Y 201BY 2019Y z020¥ 2021Y 1922 2922 3022 2ov7y z01By 20197 2020" 2021Y 1022 2022 3922 NPAs Excl
Slide 10: Strong Underwriting Culture
Strong Underwriting Culture ‘Comprehensive Underwr Disciplined LTV and DSC standards Multi-Faceted Stress Testing i , of credit analysts Every loan tested during underwriting process ‘or no reliance on participants or wholesale purchases ™ Quarterly modeling performed in conjunction Prudent growth w
Slide 11: Deposit Franchise
Deposit Franchise $9,000 8,000 $7,000 $6,000 5,000 $4000 $3,000 $2,000 $1,000 Average Total Deposits CAGR 15% ————— Yeartnded Year Ended Year Ended Year Ended YearEnded Quarter 201 2020 20% ‘a september ; as Average Demand Noninterest-bearing Deposits CAGR 21% —— YearEnded Year Ended Year Ended Year
Slide 12: Organic Growth
Organic Growth I Densely populated, lucrative markets Il Strong demand for personalized service among small to mid-sized business owners I Our target market is largely dominated by the largest institutions in the country, leaving tremendous opportunity for banks catering to middle market businesses
Slide 13: Leveraging technology to drive new opportunities
Leveraging technology to drive new opportunities | Dynamic Expansion @ Roots in NY/NJ metro area allow the bank to expand with clients as they build out-of-state outposts 1 Digital investments coupled with ability to attract top talent allows for dynamic expansion Palm Beach, FL m Banking Hub model
Slide 14: Enhancing Our Deposit Franchise
Enhancing Our Deposit Franchise Tech _ Expanded tt Lines mtiued momentum from out lu Mantl and run post opportuni Partnershi bu efficient The addition of new tea targeting deposit focuse sed s8ses, such as Healthcare busines ConnectOne is a destination for ricalen he cloud top talent, allowing us to
Slide 15: Disciplined Expansion Through M&A with Demonstrated Expertise as a Skilled Acquiror
Disciplined Expansion Through M&A with Demonstrated Expertise as a Skilled Acquiror 1m Completed transaction on January 2, 2019 and integrated systems less than 30 days after closing Completed in-Market Acquisition of $18. . 1) Commercial Bank on January 2, 2020 . Seal — Further leverages CNOB's lea
Slide 16: Active M&A Environment
Active M&A Environment Opportunities in Market Disruption @ Talent + We've experienced increased success in attracting revenue generating talent. + Due to disruption, individuals are seeking out ConnectOne. g ConnectOne a better plac New Business Lines + The opportunity to pick up clients who have b
Slide 17: Acceleration of Growth: Tech-Forward Leadership
| Acceleration of Growth: Tech-Forward Leadership Building a Leading Commercial Bank, Powered by Best-in-Class Technology Building the Future of cing Investments in technology support the growth of ConnectOne’s high performance, low efficiency model = Continued investments to enhance the bank's onli
Slide 18: Acceleration of Growth: Tech-Forward Leadership (BoeFly)
Acceleration of Growth: Tech-Forward Leadership Capitalizing on Niche Specific Opportunities BoeFly Today ly Ecosystem With both patented and proprietary technology, BoeFly helps connect small to. mid-sized businesses with professional loan brokers and lenders across the United States. ™ BoeFly oper
Slide 19: Best-in-Class Efficiency
| Best-in-Class Efficiency One of the Best Efficiency Ratios in the Industry ns utilize technology to weak gon naz serve as “business hubs” RAL) x — supporting clients beyond psieb em eae geographic footprint lit ma oe Efficiency ratio includes investments 2017Y 2018 20197 20207 2021¥ $100 ene Rae _
Slide 20: A People First Culture with Recognized Success
| A People First Culture with Recognized Success Best Places Weare proud to be to Work WELL Health-Safety Rated! & ComectOnebank
Slide 21: Strategy & Vision: CNOB: A Compelling Investment Opportunity
Strategy & Vision CNOB: A Compelling Investment Opportunity Consistent Financial Performance- Among Best-in-Class Solid Credit Culture with Disciplined Lending Philosophy Track Record of Superior Organic Growth Financially Prudent Acquiror and Experienced & Efficient Merger Integrator Benefitting fr
Slide 22: ConnectOne Bancorp, Inc.
& ConnectOne Bancorp, Inc.
Slide 23: Appendix
Appendix OSHSSSSSSSHS HSPs & ConnectOne Bancorp, Inc.
Slide 24: Loan Growth Metrics (ex. ppp)
Loan Growth Metrics (ex. ppp) Loan Portfolio & Ori $2,500 ~~ Ase A608 456 467% ee 56% 450% on $1,500 rr 1 ame ‘3.90% 27 1030 $1900 ea79 $924 r s708 oH = $508 $596 $631 500 ial 408 $200 al 3223 $926 $994 os $228 “Ey € = = = -= = 292021 392021 49.2021 102022 292022 39.2022 sree Loan Fundings Loans PaK
Slide 25: Reconciliation of GAAP and Non-GAAP Measures
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Slide 26: Reconciliation of GAAP and Non-GAAP Measures, Continued
Reconciliation of GAAP and Non-GAAP Measures, Continued Sop, 2022 on. 30, 2027 Mae 31,202 ‘As of For the Years Ended December 31 wy ze 70192020 70 To S m1 S sms $ 92H $ THIS S TASES S228 121001 § tOR011 “Amortization of Core Deposit tangles (409) (9 423) 2) 40H) .9E1) Merger : : : + 0839 695514540)
Slide 27: Reconciliation of GAAP and Non-GAAP Measures, Continued
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Slide 28: Reconciliation of GAAP and Non-GAAP Measures, Continued
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