Connectone Bancorp, Inc. · NASDAQ:CNOB
Connectone Bancorp — Investor Presentation (January 2019)
27 slides from Connectone Bancorp's investor presentation, Jan 30, 2019
Slide 1: CNOB January 2019 Investor Presentation
CNOB January 2019 Investor Presentation
Slide 2: 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, but not always, made th
Slide 3: About ConnectOne Bancorp, Inc.
About ConnectOne Bancorp, Inc. o Client first and sense of urgency in every business decision from the top of organization to the bottom Strong Culture Founded in 2005 to capitalize on poor customer service offered to middle market clients by other institutions $6.0* Billion in Total Assets ConnectO
Slide 4: Strong Franchise, Attractive Markets
Strong Franchise, Attractive Markets Strategically placed offices throughout NY/NJ metro area 4 The market we operate in accounts for approximately $2.5 trillion of the $19 trillion United States GDP Market is largely dominated by the largest institutions in the country, leaving tremendous opportuni
Slide 5: Efficient Banking Model
Investments in technology enhance our loan & deposit gathering abilities Reflects structural uniqueness of ConnectOne Peer Median*: $6.5MM We are ~3x peer median for: o Deposits per branch office o Loans per branch office o A ssets per branch office Efficient Banking Model One of the Best Efficiency
Slide 6: A History of Growth & Performance
A History of Growth & Performance 6 *Dollars in billions, except for per share data $4.0 $4.4 $5.1 $5.5 $3.1 $3.6 $4.2 $4.5 $2.8 $3.3 $3.8 $4.1 12/31/15 12/31/16 12/31/17 12/31/18 Assets Loans Deposits $10.51 $11.96 $13.01 $14.42 12/31/15 12/31/16 12/31/17 12/31/18 Tangible Book Value Per Share
Slide 7: High Operating Performance
High Operating* Performance 7 Technology & Infrastructure ROAA ROATCE EPS Operating Efficiency Ratio * Excludes the impact of charges related to the Bank's taxi medallion portfolio and non - operating items including net gains on sal es of securities, merger expenses, deferred tax valuation charge,
Slide 8: Leading Edge Technology Initiatives: Building for the Future
The financial services arena is changing quickly and ConnectOne is an early adopter Empowering our staff with the best possible tools and resources that enhance our excellent reputation for “sense of urgency” with our clients nCino Leading Edge Technology Initiatives Building for the Future 8 o Prov
Slide 9: Diversified Loan Portfolio
9 Diversified Loan Portfolio As of 12/31/18 - $4.5 Billion * Based on internal classifications Other CRE 31% Multifamily 34% Business Loans 28% Residential/ Consumer 7% Type Balance Percentage Type Balance Percentag e CRE - Retail $282 ±¸ Warehouse / Industrial $84 ¸ CRE - Other / Misc 189 ¯¸ OOC -
Slide 10: C&I Loan Portfolio
C&I C&I Loan Portfolio 10 Technology & Infrastructure Improvements focus on keeping best - in - class service with the pace of work our clients are accustomed to at ConnectOne 25 + Team Members Key hires with focused C&I specialties Note: excludes taxi medallion loans Niche Markets Added capabilitie
Slide 11: Maintaining a Strong Credit Culture
11 Maintaining a Strong Credit Culture o Disciplined LTV & DSC standards o Loan origination process supported by specialized teams of credit analysts o High quality direct commercial lending o No reliance on participations or wholesale loan purchases o Prudent growth Comprehensive underwriting stand
Slide 12: Deposit Franchise
Deposit Franchise 12 Deposit Composition 12/31/2018 Total Deposits $4.1 Billion 2018 Cost of Total Deposits 1.03% $2,569 $3,093 $3,470 $3,862 Year Ended 2015 Year Ended 2016 Year Ended 2017 Year Ended 2018 Average Total Deposits ($MM) CAGR 15% $537 $625 $681 $746 Year Ended 2015 Year Ended 2016 Year
Slide 13: Business Generation
13 Business Generation Experienced CRE Lenders & Support Staff o Focus towards owner - occupied lending Broadening Focus on C&I by Building Business Niches o Independent Schools Division o ~40% of New Jersey Independent Schools are clients o Opportunities for expansion into NY, PA & CT o Municipal D
Slide 14: Capital Allocation & Philosophy
Strongly capitalized o 8.77% TCE at the holding company o 10.78% leverage at bank o 12.75% total risk based at bank ROATCE in excess of 16% Stock buyback and dividend increase under consideration Capital Allocation & Philosophy 14
Slide 15: Merger With Greater Hudson Bank
Source: SNL Financial (1) As of and for the quarter ended September 30, 2018. (2) Core profitability before extraordinary items, less net income attributable to non - controlling interest, gain on the sale of held to maturity and a vailable for sale securities, amortization of intangibles, goodwill
Slide 16: Strategy & Vision
Strategy & Vision Continued Growth The Company remains well - positioned to execute Achieving Continued Loan and Deposit Growth 16 Increasing & Expanding Commercial Client Relationships Expanding Our Presence in the New York Metro Market Participating in M&A Utilizing a Modern Branch Office Model Co
Slide 17: Client Testimonials
“ ,, “ ,, ConnectOne Bank was our recipe for success! Their responsive and creative management team offered us all the necessary ingredients to expand and serve our community of chefs, restaurants & food lovers. Client Testimonials 17 President | James Beard Foundation Susan Ungaro “ ,, The responsi
Slide 18: ConnectOne Bancorp, Inc.
& ConnectOne Bancorp, Inc.
Slide 19: Appendix
& ConnectOne Bancorp, Inc. Appendix
Slide 20: Commercial Real Estate Lending Focus
Commercial Real Estate Lending Focus 20 o ConnectOne has maintained high levels of CRE concentration for an extended period of time o Our combination of strong organic growth and sound asset quality is our hallmark o We continue to focus on loan diversification – Concentration mitigated by accelerat
Slide 21: Loan Funding Metrics
Loan Funding Metrics 21 Trailing Quarterly Loan Fundings $495 $415 $494 $323 $357 $276 $255 $245 $214 $295 $218 $68 $112 $102 $79 4.50% 4.74% 4.98% 5.27% 5.47% 0.00% 0.75% 1.50% 2.25% 3.00% 3.75% 4.50% 5.25% $- $100 $200 $300 $400 $500 $600 $700 $800 4Q 2017 1Q 2018 2Q 2018 3Q 2018 4Q 2018 Gross Loa
Slide 22: Credit Quality
Credit Quality 22 0.38% 0.42% 0.42% 0.46% 0.44% 0.00% 0.50% 1.00% 1.50% 2.00% 2.50% 3.00% 12/31/17 3/31/18 6/30/18 9/30/18 12/31/18 NPAs/Total Assets (excluding taxi) NPAs/Total Assets 1.29% 0.99% 0.96% 0.99% 0.95%
Slide 23: Reconciliation of GAAP and non-GAAP measures
Appendix Reconciliation of GAAP and non - GAAP measures 23
Slide 24: Reconciliation of GAAP and non-GAAP measures (cont.)
24 Appendix Reconciliation of GAAP and non - GAAP measures (cont.)
Slide 25: Reconciliation of GAAP and non-GAAP measures (cont.)
25 Appendix Reconciliation of GAAP and non - GAAP measures (cont.)
Slide 26: Reconciliation of GAAP and non-GAAP measures (cont.)
26 Appendix Reconciliation of GAAP and non - GAAP measures (cont.) Dec. 31, Sept. 30, June 30, Mar. 31, Dec. 31, 2018 2018 2018 2018 2017 Asset Quality Nonaccrual taxi medallion loans 28,043$ 28,482$ 28,944$ 29,405$ 46,765$ Nonaccrual loans (excluding taxi medallion loans) 23,812 24,533 20,771 20,63
Slide 27: Reconciliation of GAAP and non-GAAP measures (cont.)
27 Appendix Reconciliation of GAAP and non - GAAP measures (cont.)
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