Connectone Bancorp, Inc. · NASDAQ:CNOB
Connectone Bancorp — Investor Presentation (September 2023)
32 slides from Connectone Bancorp's investor presentation, Sep 6, 2023
Slide 1: Form 8-K Current Report
UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 _________________ FORM 8-K _________________ CURRENT REPORT Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 Date of Report (Date of earliest event reported): September 6, 2023 _____________________________
Slide 2: Item 8.01 Other Events; Item 9.01 Exhibits
Item 8.01. Other Events. Exhibit 99.1: Presentation, September 2023, Investor Presentation Item 9.01. Financial Statements and Exhibits. Exhibits. The following is filed as an Exhibit to this Current Report on Form 8-K: 99.1 Power Point Presentation, September 2023, Investor Presentation 104 Cover P
Slide 3: Signature
SIGNATURE Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized. ConnectOne Bancorp, Inc. Date: September 6, 2023 By: /s/ William S. Burns William S. Burns Senior Executiv
Slide 4: ConnectOne Bancorp, Inc. Exhibit 99.1
Exhibit 99.1 & ConnectOne Bancorp, Inc. CNOB Investor Presentation September 2023
Slide 5: About ConnectOne Bancorp, Inc.
About ConnectOne Bancorp, Inc. ConnectOne Bancorp, Inc. is a modern financial services company with $9.7 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
Slide 6: High Operating Performance
High Operating Performance LTM and 2023 Q2 Financial Highlights ~ Note: See Appendix ). PPNR represents pre-tax netincame excluding the impact of merger and restructuringcharges and provision forloan losses. See appendix for a reconciliation of GAAP and non-GAAPmeasures. 2 Excludes loans secured by
Slide 7: Strong Core Net Interest Margin
Strong Core Net Interest Margin Yields and Costs 5.35% 5.49% _— hexas 4.80% _— 4.80% 531% Pay 5.17% 4.49% 447% 4.55% een 2.66% 2.36% : 2018Y 2019¥ 2020Y 2021Y 2022¥ 1923 2923 —e—Loans Interest-earning Assets —=g=Cost of Funds Net Interest Margin ” Rahs 3.46 % 3.28 % fi 2.86 % 2.81 % 2018Y 2019Y 2020
Slide 8: Robust Profitability and Capital Generation
Robust Profitability and Capital Generation Return on Average Assets Tangible Book Value per Share Growth 1.69% Io gant $22.34 $20.12 ° \. $16.06 \ $14.42 0.82% 0.83% | 2018Y 2019¥ 2020¥ 2021¥ 2022¥ 1Q 23 2Q 23 2018Y 2019¥ 2020Y 2021¥ 2022¥ 2Q 23 —e—CNOB oe Peers(1) Besse Prost, Source: Company Fili
Slide 9: Non-Interest Income
Non-Interest Income Diversification of Revenue BoeFly * Strong fee income momentum + Growing opportunities to expand product set Gains on Sale SBA Division + Commercial Residential + Interchange fees + Overdraft fees na + Maintenance fees Minimal dependency on income streams subject to regulatory pr
Slide 10: Diversified and Granular Loan Portfolio
Diversified and Granular Loan Portfolio ($ in millions) Select Loan Portfolio Details as of June 30, 2023 % of Segment $M Total Underwriting Standards Project feasibility Developers background and expertise Strict loan to cost advances Rental fallback Plan and cost review Interest reserve Personal g
Slide 11: Loan Portfolio Detail
Loan Portfolio Detail ($ in millions) Type | Balance | Percentage Type [Balance [Percentage] CRE- Other / Misc $ 710 9%] |00C-Warehouse/ Industrial $ 250 2% Residential/ CRE- Retail 656 8%| ]OOC- Retail a1 pe) Consumer, 3% ICRE- Office 407 5%] |O0C- Other 193 pe] CRE - Warehouse / (OOC- Office / War
Slide 12: High Quality Asset Composition and Reserves
High Quality Asset Composition and Reserves Loan Loss Reserves / Loans Receivable Nonperforming Assets / Total Assets 0.95% 1.27% 0.80% 0.82% 115% 112% 1.07% 1.09% 0.76% 0.53% | 0.75% | 0.46% «0.48% 2018Y 2019Y 2020 2021Y 2022Y 1923 2923 2018Y 2019Y 2020Y 2021Y 2022Y 1923 2923 = NPAs Excl. Taxi / To
Slide 13: Strong Underwriting Culture
Strong Underwriting Culture Comprehensive Underwriting ® 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 grow
Slide 14: Deposit Franchise
Deposit Franchise Deposit Composition as of June 30, 2023 Uninsured Deposits as of June 30, 2023 Demand Noninterest- Total Bank Deposits $ 7,575 bearing banal 18% 35% Estimated Uninsured Deposits $ 3,183 Less: Collateralized Deposits 7 Less: Affiliate Deposits 862 Adjusted Uninsured Deposits $1,551
Slide 15: Enhancing Our Deposit Franchise
Enhancing Our Deposit Franchise Tech Investments Partnerships with Mantl and Nymbus provide opportunities to leverage modern tech to efficiently grow deposits and continue to expand our reach Mant! will replace our current in branch and online deposit n software enhancing s and supporting our dynami
Slide 16: Organic Growth
Organic Growth Opportunities to expand as a result of post-pandemic trends Densely populated, lucrative markets @ Strong demand for personalized service among small to mid-sized business owners @ Our target market is largely dominated by the largest institutions in the country, leaving tremendous op
Slide 17: Dynamic Expansion
Dynamic Expansion Leveraging technology to drive new opportunities @ Roots in NY/NJ metro area allow the bank to expand with clients as they build out-of-state outposts @ Digital investments coupled with ability to attract top talent allows for dynamic expansion gm Banking Hub model allows ConnectOn
Slide 18: 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 transaction on January 2, 2019 and integrated systems less than 30 days after closing Completed in-Market Acquisition of $1B Commercial Bank on January 2, 2020 Enhances Scale and Future Growth Opportuniti
Slide 19: Active M&A Environment
Active M&A Environment Opportunities in Market Disruption @ = iTalent + We've experienced increased success in attracting revenue generating talent. + Due to disruption, individuals are seeking out ConnectOne. g ConnectOne a better place to be ™@ New Business Lines * The opportunity to pick up clien
Slide 20: 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 Banking @ Investments in technology support the growth of ConnectOne’s high performance, low efficiency model @ Continued investments to enhance the bank’s o
Slide 21: Acceleration of Growth: Tech-Forward Leadership
Acceleration of Growth: Tech-Forward Leadership Capitalizing on Niche Specific Opportunities 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 operates as a separate, indepen
Slide 22: Best-In-Class Efficiency
Best-In-Class Efficiency One of the Best Efficiency Ratios in the Industry Locations utilize technology to serve as “business hubs” $19MM supporting clients beyond Ge uC 8% 54.9% i i Employee pak: geographic footprint 56.2% 55.8% .9 o 40. 38.3% o Efficiency ratio includes investments in infrastructu
Slide 23: A People First Culture with Recognized Success
A People First Culture with Recognized Success Best Places We are proud to be WELL Health-Safety Rated! to Work oe WELL = HEALTH-SAFETY \ RATED | NG B WELLS é &} ConnectOneBank 2022 Top Bank Pa with assets $58 to $508 Bank Director
Slide 24: 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 25: ConnectOne Bancorp, Inc.
& ConnectOne Bancorp, Inc.
Slide 26: Appendix
Appendix & ConnectOne Bancorp, Inc.
Slide 27: Loan Growth Metrics (ex. ppp)
Loan Growth Metrics (ex. ppp) $3,000 7.93% a17% 6.94% $2,500 as 5.54% 5.35% 5.49% $2,000 450% 4.68% es a= —el $1,500 —_—_s——_— = —T0s $924 «| 4.67% $1,038 $1,000 " $585 $596 $631 $511 pee $394 S191 <= $328 “EH $311 g099 $319 $287 ¢ $279 $264 5 32 15 Pa Bee ee 1Q 2022 2Q 2022 3Q 2022 4Q 2022 1Q 2023
Slide 28: CRE Portfolio Additional Detail
CRE Portfolio Additional Detail Office Composition as of June 30, 2023 Multifamily Loans as of June 30, 2023 FL Other Maturing or Repricing in Other NYC 6% 1% 12-months 10% Boroughs 11% Manhattan 7% NY (Ex NYC) NJ 13% 62% All Other 90% + Office portfolio is total under 7% of total loans, + Highly se
Slide 29: Reconciliation of GAAP and Non-GAAP Measures
Reconciliation of GAAP and Non-GAAP Measures As of or For the Quarters Ended, (Ss inthousands) Jun. 30, 2023 Mar. 31,2023 Dec. 31,2022 ‘Sep. 30, 2022 LT Retum on Equity Measures Net Income Available to Common Stockholders $ 19885 $ 23420 $ 31087 $ 7740S 101,758 Amortization of Core Deposit Intangibl
Slide 30: Reconciliation of GAAP and Non-GAAP Measures, Continued
Reconciliation of GAAP and Non-GAAP Measures, Continued (Ss in thousands) ‘As of or For the Quarters Ended, ‘As of or For the Years Ended December 31 jun 30, 2023 Mar.31, 2023 Dec.31, 2022 Sep 30,2022 ~ LIM 2018 2019 2020 2021 2022 Efficiency Meas ures. Total Noninterest Expenses $ 39450 $ 34870 $ 3
Slide 31: Reconciliation of GAAP and Non-GAAP Measures, Continued
Reconciliation of GAAP and Non-GAAP Measures, Continued (S's in thousands, except per share data) As of or For the Quarters Ended As of or For the Years Ended December 31, Jun. 30,2023 Mar. 31,2023 2018 2019 2020 2021 2022 Book Value Per Share: Stockholders equity $ 1,199397 $ 1,190,970 $ 613927 $ 7
Slide 32: Reconciliation of GAAP and Non-GAAP Measures, Continued
Reconciliation of GAAP and Non-GAAP Measures, Continued (S's inthousands) As of or For the Quarters Ended, As of or For the Years Ended December 31, “Jun. 30,2023 Mar.31, 2023 20718 2079 2020 2021 2022 Net Loan Charge-Off (Recoveries) Detail: ‘Loans ‘luding Loans Held and Loans) $ 8149374 $ 8,131,03
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