Connectone Bancorp, Inc. · NASDAQ:CNOB
Connectone Bancorp — Investor Presentation (June 2021)
25 slides from Connectone Bancorp's investor presentation, Jun 9, 2021
Slide 1: CNOB June 2021 Investor Presentation
CNOB June 2021 Investor Presentation
Slide 2: About ConnectOne Bancorp, Inc.
About ConnectOne Bancorp, Inc. Client 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 $7.5 Billion in Total Assets 2 One of the most e
Slide 3: High Operating Performance: 2021 Q1 Financial Highlights
High Operating Performance 3 2021 Q1 Financial Highlights 1. PPNR represents net income excluding the impacts of taxes, merger and restructuring charges and provisions for loan losses. See appendix for a reconciliation of GAAP and non - GAAP measures. 2. Core return on assets as reported by S&P Glob
Slide 4: Yields and Costs: Strong Core Net Interest Margin
Yields and Costs 4 Strong Core Net Interest Margin Net Interest Margin Source: Company Filings, S&P Global Market Intelligence Note: Please refer to Non - GAAP reconciliation in Appendix. 1. Peers include BHLB, BMTC, BRKL, CUBI, EBTC, EGBN, FFIC, FLIC, INDB, LBAI, OFCF, PGC, PROV, SASR, UVSP & WASH.
Slide 5: Robust Profitability and Capital Generation
5 Robust Profitability and Capital Generation Note: Please refer to Non - GAAP reconciliation in Appendix. 1 Excludes merger expenses, nonrecurring items and securities gains. 2 As reported by S&P Global Market Intelligence, peers include BHLB, BMTC, BRKL, CUBI, EBTC, EGBN, FFIC, FLIC, INDB, LBAI, O
Slide 6: Diversified and Granular Loan Portfolio
Lending within geographic footprint — NY / NJ metro market economically strong and diverse Average loan size: ~$ 1.0M (excluding PPP) No borrower relationship exposure greater than 1.3% of total loan portfolio ~99+% of portfolio through relationship lending 6 Diversified and Granular Loan Portfolio
Slide 7: Diversified and Granular Loan Portfolio: Underwriting Standards
Project feasibility Developer's background and expertise Strict loan to cost advances Rental fallback Plan and cost review Interest reserve Personal guarantees with reliance on liquidity Bank engineer oversight and inspection 7 Diversified and Granular Loan Portfolio (excl. Paycheck Protection Progr
Slide 8: Loan Portfolio Detail (excludes PPP)
8 Loan Portfolio Detail (excludes PPP) ($ in millions) Note: Numbers may not sum to 100% due to rounding. Other CRE , 37% Multifamily , 29% Business Loans , 29% Residential/ Consumer , 5% Type Balance Percentage Type Balance Percentage CRE - Retail $ 424 7% OOC - Retail $ 147 3% CRE - Other / Misc 3
Slide 9: High Quality Asset Composition and Reserves
9 Loan Loss Reserves / Loans Receivable Nonperforming Assets Additional Detail Current Expected Credit Losses (“CECL”) The Company adopted the CECL accounting standard as of January 1, 2021 The “Day 1” effect of the adoption resulted in a $4.2 million pre - tax charge to equity and a $5.2 million re
Slide 10: Strong Underwriting Culture
10 Strong Underwriting Culture Disciplined LTV and DSC standards Loan origination process supported by specialized teams of credit analysts High - quality direct commercial lending platform with little or no reliance on participants or wholesale purchases Prudent growth Multi - Faceted Stress Testin
Slide 11: Deposit Franchise
Deposit Franchise 11 Deposit Composition as of 3/31/2021 Total Deposits $6.0 billion 2021 1Q Cost of Total Deposits 0.71% Demand Noninterest - bearing 23% Demand Interest - bearing 25% Money Market 23% Savings 6% Time 23% $- $1,000 $2,000 $3,000 $4,000 $5,000 $6,000 $7,000 $8,000 Year Ended 2016 Yea
Slide 12: BoeFly Enhancing Franchise Value Through Tech
With dynamic patented technology, BoeFly helps connect small to mid - sized businesses with professional loan brokers and lenders across the US. 12 BoeFly Enhancing Franchise Value Through Tech BoeFly operates as a separate, independent division ConnectOne participates as one of the partners in the
Slide 13: BoeFly Banks Today's Ecosystem
BoeFly Banks 13 Today’s Ecosystem BoeFly provides Franchisors vetted and qualified franchisee applicants Completed small business loan packages Franchisee submits application for vetting and qualification Completes backgroud check , receives franchisor approval , and potential funding options Potent
Slide 14: BoeFly Franchisee Workflow
BoeFly 14 Franchisee Workflow Potential Franchisees
Slide 15: Organic Growth
Organic Growth Strategically placed offices in attractive markets make for strong organic growth potential 15 Market is largely dominated by the largest institutions in the country, leaving tremendous opportunity for banks catering to middle market businesses New York City Market Densely populated,
Slide 16: Completed Acquisitions and BoeFly
16 Completed transaction on January 2, 2019 and integrated systems less than 30 days after closing Value - add transaction; many benefits realized — Loan - to - deposit ratio improved — CRE concentration reduced — Net interest margin widened — Upward trajectory of tangible book value per share conti
Slide 17: Best-In-Class Efficiency
17 Best - In - Class Efficiency $1 8.1 M Assets Per Employee Investments in digital banking and FinTech solutions allow ConnectOne to scale efficiently. Locations utilize technology to serve as “business hubs” supporting clients beyond geographic footprint Historical Operating Performance Source: Co
Slide 18: Building the Future of Banking
Building the Future of Banking Our Philosophy on Innovation & Technology 18 Identify early - midstage Fintech providers interested in forming strategic relationships with ConnectOne Identify and implement modern tools to enhance the operations of the bank & BoeFly Identify partners to position the b
Slide 19: Tech-Forward Leadership
Tech - Forward Leadership Franchise Overview 19 Robust Profitability and Capital Generation Solid Capital Base with Significant Cushion Above Well - Capitalized Levels Robust Core Net Interest Margin Quality Deposit Franchise with Branch - Lite Distribution Model Best - In - Class Efficiency Diversi
Slide 20: © ConnectOne Bancorp, Inc.
© ConnectOne Bancorp, Inc.
Slide 21: Appendix
Appendix HH Hh HH HHH sp
Slide 22: Reconciliation of GAAP and non-GAAP measures
22 Appendix Reconciliation of GAAP and non - GAAP measures $ in Thousands
Slide 23: Reconciliation of GAAP and non-GAAP measures (cont.)
23 Appendix Reconciliation of GAAP and non - GAAP measures (cont.) $ in Thousands
Slide 24: Reconciliation of GAAP and non-GAAP measures (cont.)
24 Appendix Reconciliation of GAAP and non - GAAP measures (cont.) $ in Thousands
Slide 25: Reconciliation of GAAP and non-GAAP measures (cont.)
25 Appendix Reconciliation of GAAP and non - GAAP measures (cont.) $ in Thousands
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