Connectone Bancorp, Inc. · NASDAQ:CNOB

Connectone Bancorp — Merger or Acquisition (September 2024)

18 slides from Connectone Bancorp's merger presentation, Sep 5, 2024

1. Slide 1: Accelerating Growth On Long Island Through A Strategic Merger With FLIC

   (NASDAQ: CNOB) Accelerating Growth On Long Island Through A Strategic Merger With The First Of Long Island Corporation (NASDAQ: FLIC) September 5, 2024

2. Slide 2: Forward Looking Statements

   Forward Looking Statements CAUTIONARY NOTES ON FORWARD LOOKING STATEMENTS All non-historical statements in this presentation (including without limitation statements regarding the pro forma effect of the proposed transaction, cost savings, anticipated expense totals, the accretive nature of the prop

3. Slide 3: Important Additional Information

   Important Additional Information In connection with the proposed merger with The First of Long Island Corporation, ConnectOne will file with the Securities and Exchange Commission (the "SEC") a registration statement on Form S-4 to register the shares of ConnectOne common stock to be issued in conne

4. Slide 4: Pro Forma Franchise Overview

   Pro Forma Franchise Overview Pro Forma Geographic Footprint and Financial Highlights Nassau County Deposit Market Share Deposits in Deposit Florida | 23 Market Market Rank(1) Institution ($mm) Share (%) | 40 1. Webster Financial Corp. (CT) 16,185 14.3 2. Flushing Financial Corp. (NY) 3,480 3.1 New Y

5. Slide 5: Strategic Rationale

   Strategic Rationale  Materially accelerates CNOB’s Long Island expansion strategy Strategic Market  Adds over $3 billion of deposits in demographically attractive markets Expansion  Local market share of #4 in Nassau County and #5 in Suffolk County(1)(2)  Low cost deposit base with over 30% non-

6. Slide 6: FLIC Company Snapshot

   FLIC Company Snapshot FLIC Financial Snapshot(1) Balance Sheet Scale  Ticker: FLIC (NASDAQ) | HQ: Melville, NY  Franchise Highlights: $4.2b $3.3b $3.4b $376mm Assets Loans Deposits TCE – Founded in 1927 – 4th largest bank headquartered on Long Island – Serves the financial needs of small to mid-si

7. Slide 7: Attractive Deposit Base and History of Prudent Underwriting

   Attractive Deposit Base and History of Prudent Underwriting Low Cost of Deposits Strong Underwriting Practices NPAs / Loans + OREO (%) 2.00 3.02% 1.75 2.89% 1.50 1.25 0.92 1.00 0.87 0.88 0.78 0.75 0.68 0.69 0.75 2.31% 0.50 2.18% 2.07% 0.25 0.06 0.06 0.03 0.07 0.06 0.00 0.04 0.00 2019Y 2020Y 2021Y 20

8. Slide 8: Transaction Diversifies Loan Portfolio and Improves Funding Profile

   Transaction Diversifies Loan Portfolio and Improves Funding Profile  Balanced loan portfolio on a pro forma basis  Meaningfully improves CNOB’s deposit composition; addition of FLIC increases CNOB demand deposits to 22% of total  Both companies are liability sensitive and well positioned for furt

9. Slide 9: Comprehensive Due Diligence Conducted

   Comprehensive Due Diligence Conducted  Comprehensive due diligence review of FLIC completed over a three-month period Due Diligence  Diligence review covered all functional areas, in addition to business strategies, clients, associates, and culture Scope of Review  Heightened diligence focus surr

10. Slide 10: Transaction Summary

    Transaction Summary  100% stock consideration Structure and Consideration  0.5175x shares of CNOB to be issued for each share of FLIC  $12.40 per share(1)  $283.9 million aggregate deal value Pricing Metric FLIC Acquisition Multiple Comparable M&A Transactions(2) Transaction Value and Multiples

11. Slide 11: Summary Transaction Assumptions

    Summary Transaction Assumptions  CNOB based on “street” estimates Earnings Estimates  FLIC based on “street” estimates, adjusted for 26% effective tax rate Cost Savings  35% of FLIC noninterest expense, phased in 50% in 2025, 100% thereafter  Assumes standalone cost of crossing $10 billion is al

12. Slide 12: Estimated Financial Impact

    Estimated Financial Impact Material EPS Accretion with Short Earnback Period Pro Forma Capital Remains Strong (Holding Company Consolidated) Including Rate Marks Excluding Rate Marks(1) With $100 Million Subordinated Debt Raise 36% 9% 7.9% 9.8% 13.3% 445% 2025E EPS 2025E EPS TCE CET1 Total Capital C

13. Slide 13: Top Tier Pro Forma Profitability with Valuation Upside

    Top Tier Pro Forma Profitability with Valuation Upside 2025E ROATCE (%)(2) Pro Forma Peers(1)  Pro forma capital generation is strong post 21.4 ($10-$25bn) close 16.3 15.4 14.4 13.8 13.3 12.9  Generates approximately 50bps of 12.1 10.9 9.6 TCE/TA, CET1, and Total Capital annually 9.3 9.2 8.8 8.7 8

14. Slide 14: Transaction Benefits All Stakeholders

    Transaction Benefits All Stakeholders CLIENTS COMMUNITIES EMPLOYEES SHAREHOLDERS • Greater ability to serve • Longstanding • Strong alignment of • Meaningful scale and the Long Island market commitment to the cultures focused on risk franchise value needs of our management and • Expanded branch • 30

15. Slide 15: ConnectOne Bancorp, Inc.

    & ConnectOne Bancorp, Inc.

16. Slide 16: Appendix

    Appendix jonnectOne Bancorp, Inc.

17. Slide 17: Pro Forma Earnings Accretion Reconciliation

    Pro Forma Earnings Accretion Reconciliation 2025Y w / Interest Ex . Interest ($ in millions except per share amounts) Rate Marks Rate Marks CNOB E arnings $79.2 $79.2 FLIC E arnings 26.0 26.0 Normalization of FLIC E arnings at 26% Tax Rate (4.9) (4.9) Combined Earnings $100.3 $100.3 Merger Related A

18. Slide 18: Pro Forma Tangible Book Value Reconciliation

    Pro Forma Tangible Book Value Reconciliation Closing ($ in millions except per share amounts) Balance Sheet Shares (mm) Per Share ($ in millions ) CNOB Standalone Common E quity at Close $1, 160 38.4 Transaction Consideration $284 Less: Goodwill and Other Intangibles (212) FLIC TBV at Close $393 CNO

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