Connectone Bancorp, Inc. · NASDAQ:CNOB

Connectone Bancorp — Investor Presentation (August 2021)

34 slides from Connectone Bancorp's investor presentation, Aug 11, 2021

  1. Slide 1: Preferred Stock Offering

    & ConnectOne Bancorp, Inc. CNOB Preferred Stock Offering , =

  2. Slide 2: Forward Looking Statements

    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, bu

  3. Slide 3: Terms of Proposed Preferred Stock Offering

    Terms of Proposed Preferred Stock Offe ptesuer | ™ ConnectOne Bancorp, Inc. (NASDAQ: CNOB) (Depositary shares 1/40) Non-Cumulative Perpetual Preferred Stock, Series A | rating | BB+ by Kroll Bond Rating Agency a Fixed Rate Reset SEC registered wt Nestea (Pending) ™ General corporate purposes, which

  4. Slide 4: About ConnectOne Bancorp, Inc.

    About ConnectOne Bancorp, Inc. ConnectOne Bancorp, Inc. is a modern financial services company with $7.7 billion in assets. It operates through its bank subsidiary, ConnectOne Bank, and its fintech subsidiary, BoeFly. ConnectOne Bank is a high-performing commercial bank offering a full suite of prod

  5. Slide 5: Experienced Leadership

    Experienced Leadership Management Team with Over 20 Years of Experience on Average Frank Sorrentino III Chairman, President and CEO Years of Experience Founder of CNOB 16 Years Industry Prior Experience ™ President of FSS Construction Laura Criscione Executive VP and Chief Compliance Officer Years o

  6. Slide 6: Franchise Overview and Investment Highlights

    Franchise Overview and Investment Highlights « Robust Profitability and Capital Generation Solid Capital Base with Significant Cushion Above Well Capitalized Levels ¢ Strong Core Net Interest Margin ( > Quality Deposit Franchise with Branch-Lite Distribution Model € Best-In-Class Efficiency a ( ¢ St

  7. Slide 7: Robust Profitability and Capital Generation

    @ Robust Profitability and Capital Generation Return on Average Assets Tangible Book Value per Share Growth 1.78% 6 sr since” ore we gro “gi7ag $18.02 ~ $16.06 = : E E $13.01 : $11.96 0.73% | an 2owey 2017” 2018y 2019 2020v 1921 2021 zovey | 2017" 2018y "20197 20207 1921 2021 e=cNOB mePeers' Bees Pr

  8. Slide 8: Solid Capital Base with Significant Cushion Above Well Capitalized Levels

    e Solid Capital Base with Significant Cushion Above Well Capitalized Levels ConnectOne Bancorp, Inc. ‘Common Equity Tier 1 Risk-Based Ratio Tier 1 Risk-Based Ratio Tier 1 Leverage Ratio Total Risk-Based Capital Ratio 12.96% SBN Teer lll Ol ; O } i ; L U ; D lll 2019¥ 2020¥ 2Q21 2019 2020¥ 2Q21 2019Y

  9. Slide 9: Strong Core Net Interest Margin

    3] Strong Core Net Interest Margin Strong Core NIM Well Positioned for Current Rate Environment Yields and Costs 5.08% 443% 4AT% bes ieee 4.59% 4.58% 487% 417% 429% aides SAmR 4.23% 4a7% 1.62% 1.29% " . 1.08% 0.84% 0.29% aes wae 2016y" 2017y" 2018y" 2019" 2020¥" 19217 29217 —e-Loans —e=Interest-Eamn

  10. Slide 10: Quality Deposit Franchise with Branch-Lite Distribution Model

    e Quality Deposit Franchise with Branch-Lite Distribution Model ($ in millions) Average Deposit Balances ! 2016 - Q2 2021 CAGR: 16% $5,808 S$o078 $3,093 Stated Deposits (SM) /Branct . . : : — 20167 20177 2018Y 20197 2020 2921 NOB $147 ‘$165 $176 $125 $215 ‘$234 Peers® 79 93 107 712 135 150 Historica

  11. Slide 11: One of the Best Efficiency Ratios in the Industry

    © Best-in-Class Efficiency One of the Best Efficiency Ratios in the Industry Historical Operating Performance Locations utilize technology to serve as “business hubs” $18.1M 59.0% 55.8% saan 549% 564% 55.5% supporting clients beyond oisee geographic footprint “gory " zor7y ” 2oiey "20197 "20207 yr 2

  12. Slide 12: High Quality Asset Composition and Reserves

    @ High Quality Asset Composition and Reserves 1.27% 1.28% 23s 1.57% 0.74% 0.76% 0.77% 0.75% | t rt 0.73% 038% 0.44% 0.42% 0.51% 0.51% 9.43% 0.14% z i 2016Y 2017Y 2018Y 2019¥ 2020Y Q121 221 2016y 2017Y 2018y 20192020 121" q22t mNPAs/ Total Assets NPAs Excl. Taxi / Total Assets ACL By Segment Type as

  13. Slide 13: COVID-19 CARES Act Deferrals

    © COVID-19 CARES Act Deferrals ($ in millions) Total Deferrals as of June 30, 2020 Total Deferrals as of June 30, 2021 Loan Type # $___% of Loans Loan Type # $___% of Loans Commercial Real Estate 273 $525 8.2% Commercial Real Estate 15 $51 0.8% Multifamily 58 163 2.6% Muttifarily 5 32 0.5% 1-4 Famil

  14. Slide 14: Strong Underwriting Culture

    (7) Strong Underwriting Culture Comprehensive Underwi ™ Disciplined LTV and DSC standards . - Multi-Faceted Stress Testing ™ Loan origination process supported by specialized teams of credit analysts = High-quality direct commercial lending platform with little m Every loan tested during underwritin

  15. Slide 15: Diversified and Granular Loan Portfolio

    © Diversified and Granular Loan Portfolio ($ in millions) Select Loan Portfolio Details as of June 30, 2021 % of Segment $M__Total Underwriting Standards Project feasibity Developers background and expertise Stet loan to cost advances Rental fallback Plan and cost review Interest esere Personal guar

  16. Slide 16: Diversified and Granular Loan Portfolio

    ed and Granular Loan Portfolio © Diversifi ($ in millions) Loan Composition’ as of June 30, 2021 Historical Loan Balances* Commercial Construction 9% Multifamily 30% $6,414 Residential 5% $6,241 ‘$5,147 ‘Commercial $4,541 16% $4,196 $3,554 ‘Commercial - ‘Commercial comma er ® Lending within geograph

  17. Slide 17: Our Philosophy on Innovation & Technology

    © Tech-Forward Leadership Our Philosophy on Innovation & Technology Building the Future of Banking Today's BoeFly Ecosystem Identify early-midstage FinTech providers interested in forming strategic relationships with ConnectOne Identify and implement modem tools to enhance the operations of the bank

  18. Slide 18: Strategy & Vision

    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 # Ben

  19. Slide 19: ConnectOne Bank

    © ConnectOne B

  20. Slide 20: Appendix

    Appendix > H LH hh H H hh H HH oh H

  21. Slide 21: Overview of Results — 2Q 2021 Income Statement

    Overview of Results — 2Q 2021 Income Statement ($ in thousands, except per share data) ‘Seven consecutive quarters of margin ‘Tiree Months Ended expansion with a NIM of 3.60% in Q2 2021 “hn 30, 2021 Mar 21,2021 hn. 30,2020 Margin widened from 1Q 2021 as a result of esses! meow Sze S7e6et STASI? SESS

  22. Slide 22: Overview of Results — 2Q 2021 Balance Sheet

    Overview of Results — 2Q 2021 Balance Sheet en in thousands, except per share data) a Increase in loans receivable attributable to. higher, non-PPP, loan originations, offset by ane PPP loan forgiveness Annualized sequential loan growth, net of PPP forgiveness, in excess of 20% = 6.3% growth from Ju

  23. Slide 23: History of ConnectOne Bancorp, Inc.

    History of ConnectOne Bancorp, Inc. JANUARY 2005, Founded as North Jersey Community Bank by Frank Sorrentino Ill & local businesses and civic leaders Reached $500 ‘OCTOBER 2009 milion in assets <a FEBRUARY 2013, Rebranded to ConnectOne Bank Po Completed successful First bank to go public since 2010

  24. Slide 24: Disciplined Expansion Through M&A with Demonstrated Expertise as a Skilled Acquiror

    Disciplined Expansion Through M&A with Demonstrated Expertise as a Skilled Acquiror ™ Completed in-Market Acquisition of $1B 1) Commercial Bank on January 2, 2020 ™_ Enhances Scale and Future Growth Opportunities ™ Completed transaction on January 2, 2019 and integrated systems less than 30 days aft

  25. Slide 25: Historical Interest Coverage & Double Leverage

    Historical Interest Coverage & Double Leverage As of the Period Ended: Year-to-Dat (31/2016 _ 12/31/2017 12/31/2018 12/31/2019 12/31/2020 _6/30/2021_ Double Leverage Ratio (Sinthousands) Investment in Subsidiaries $580,048 —-$614083 $692,516 $810,705 $1,007,998 $1,054,017 Consolidated Equity 531,082

  26. Slide 26: Illustrative Impact of the Offering on Capital Ratios

    Illustrative Impact of the Offering on Capital Ratios 6/30/2021 Actual —_m Pro Forma for Proposed Preferred Equity 16.02% 12.60% 11.36% 11.09% 9.84% TCE/TA Leverage Ratio CET1 Capital Ratio Tier 1 Ratio Total Capital Ratio ‘Souree: Company Filing "Note: Assumes gross offering of $100M net proceeds o

  27. Slide 27: Schedule of Parent Company Debt Outstanding

    Schedule of Parent Company Debt Outstanding ($ in thousands) Parent Company Debt Obligations as of June 30, 2021 Optional Redemption Total Debt Coupon Name Date Issued Maturity Date Outstanding Structure Subsidiary Trust Preferred Center Bancorp Statutory Trust yangzo03 = yes034 = 12372008" $5000 3-

  28. Slide 28: Credit Ratings Profile

    Credit Ratings Profile Kroll Ratings Rating Outlook Senior Unsecured Debt BBB Stable Subordinated Debt BBB- Stable Short Term Debt K3 N/A Preferred Shares BB+ Stable ‘GonnectOne Bank Deposit BBB+ Stable Senior Unsecured Debt BBB+ Stable Subordinated Debt BBB Stable Short-Term Deposit K2 N/A Short-Te

  29. Slide 29: Loan Portfolio Detail

    Loan Portfolio Detail (excludes PPP) ($ in millions) Residential/ Consumer, 5% Business Loans, 26% Multifamily, 31% "Note: Numbers may not sum to 100% due fo rounding Other CRE, 38% To Tal Teens one-oter/mse «sa | fooc-Ret rs one - ret 4 —_ax| [P90 arehauze/ mo one -once 21 axl [ooc-once wo cre Ware

  30. Slide 30: Well-Managed Liquidity

    Well-Managed Liquidity (Sin millions) "@ @ @ © © @ $o07 ($724 Obligations of US. States 20% * Corporate $428 $423 bonds and notes = others Residentat ‘ Mortgage PTS *~ 2016Y 2017¥ 2018Y 2019¥ 2020¥ Q221 ™ Cash and Cash Equivalents —_w Total Liquid Assets’ Total AFS Securities: $458.9M Historical FHL

  31. Slide 31: Reconciliation of GAAP and Non-GAAP Measures

    Reconciliation of GAAP and Non-GAAP Measures (B's in thousands, except per share data) ‘As of or For the Quarters Ended, {sof or For the Years Ended December 31, ‘Jun. 30, 2021 Mar.31, 2021 Jun. 30, 2020, 2016 2017 2018 2019. 2020 Book Value Per Share: ‘Common Equity $ 964960 § 935637 § 867,741 8 53

  32. Slide 32: Reconciliation of GAAP and Non-GAAP Measures, Continued

    Reconciliation of GAAP and Non-GAAP Measures, Continued (sin thousands) ‘sof For tho Quarters Ende, ‘As of or For tho Years Ended December 31 “hn. 30,2021 Mar. 31,2021 2016 2017 2018 2019 70a0 Net Loan Charge-Oft Recoveries) Detal ‘Average Loans (Including Loans HeléforSale and Nonaceral Loans) -«$-

  33. Slide 33: Reconciliation of GAAP and Non-GAAP Measures, Continued

    Reconciliation of GAAP and Non-GAAP Measures, Continued 1s of o For the ('3in thousands) [As of or For the Quarters Ended, ‘Six Months Ended, {sof or For the Years Ended December 31, an 30, 2021 Mar.31,2021 Jun. 30,2020 _~ Jun. 30, 2021 2017 2018-2019 ~—~2020, Efficiency Measures Total Noninterest E

  34. Slide 34: Reconciliation of GAAP and Non-GAAP Measures, Continued

    Reconciliation of GAAP and Non-GAAP Measures, Continued ($'s in thousands) ‘As of or For the Quarters Ended, Jun. 30, 2021 ‘Mar. 31, 2021 8 32219 § 32999 § 14832 Amortization of Core Deposit intangibles - After Tax 508 507 652 Net Income Adjusted for Intangible Expenses 3 32,727_§ 33506 § 75,486 ‘Av

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