Connectone Bancorp, Inc. · NASDAQ:CNOB
Connectone Bancorp — Investor Presentation (February 2025)
32 slides from Connectone Bancorp's investor presentation, February 2025
Slide 1: CNOB Investor Presentation
CNOB Investor Presentation February 2025
Slide 2: About ConnectOne Bancorp, Inc.
About ConnectOne Bancorp, Inc. ConnectOne Bancorp, Inc. is a modern financial services company with $9.9 billion in assets. It operates through its bank subsidiary, ConnectOne Bank, and its fintech subsidiary, BoeFly. ConnectOne Bank is a high-performing commercial bank offering a full suite of prod
Slide 3: Organic Growth
Organic Growth Opportunities to expand as a result of post-pandemic trends Densely populated, lucrative markets Strong demand for personalized service among small to mid-sized business owners Our target market is largely dominated by the largest institutions in the country, leaving tremendous opport
Slide 4: Dynamic Expansion
Dynamic Expansion Leveraging technology to drive new opportunities Roots in NY/NJ metro area allow the bank to expand with clients as they build out-of-state outposts Digital investments coupled with ability to attract top talent allows for dynamic expansion Banking Hub model allows ConnectOne to ex
Slide 5: Pro Forma CNOB-FLIC Franchise Merger Overview
Pro Forma CNOB-FLIC Franchise Merger Overview Pro Forma Geographic Footprint and Financial Highlights Nassau County Deposit Market Share Deposits in Deposit Market Market Rank(1) Institution ($mm) Share (%) Florida | 23 1. Webster Financial Corp. (CT) 16,185 14.3 2. Flushing Financial Corp. (NY) 3,4
Slide 6: Merits of the CNOB-FLIC Merger
Merits of the CNOB-FLIC Merger Strategic Valuation Accelerates CNOB’s Long Island Expansion Attractively Priced at 75% of TBV Propels CNOB to Nearly $15B in Assets Accelerates CNOB into a Larger, Higher FLIC’s Core Deposit Base Benefits from Valuation, Peer Group CNOB’s Technological Enhan
Slide 7: Estimated Financial Impact of CNOB-FLIC Merger
Estimated Financial Impact of CNOB-FLIC Merger Material EPS Accretion with Short Earnback Period Pro Forma Capital Remains Strong (Holding Company Consolidated as Announced) – Including Rate Marks Excluding Rate Marks(1) With $100 Million Subordinated Debt Raise 36% 9% 7.9% 9.8% 13.3% 445% 2025E EPS
Slide 8: 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 Completed transaction on Commercial Bank on January 2, 2020 January 2, 2019 and integrated systems less than 30 days after closing Enhances Scale and Future Growth Market
Slide 9: Operating Performance
Operating Performance LTM and 2024 Q4 Financial Highlights 0.78% 7.6% 0.76% 9.5% LTM Operating Net LTM Return on LTM Return on Tangible Common Income1 Tangible Common Average Assets Equity Ratio as a % of Average Equity Assets 2.72% 1.52% 0.48% 3.4% LTM Net Interest LTM Operating NIE to Non-performi
Slide 10: Core Net Interest Margin
Core Net Interest Margin (1) (2) Yields and Costs 5.82% 5.91% 5.87% 5.84% 5.57% 5.08% 4.80% 4.59% 4.80% 5.63% 5.71% 5.66% 5.63% 5.38% 4.87% 3.26% 3.24% 3.27% 4.47% 4.55% 2.79% 3.02% 4.20% 1.62% 1.08% 0.94% 0.58% 2019Y 2020Y 2021Y 2022Y 2023Y 1Q 24 2Q 24 3Q 24 4Q 24 Loans Interest-earning Assets Cost
Slide 11: Robust Profitability and Capital Generation
Robust Profitability and Capital Generation Return on Average Assets Tangible Book Value per Share Growth 1.69% $30.00 16.0% 1.43% $25.00 $23.92 11.0% $23.14 $21.71 1.22% $20.12 $20.00 6.0% AOCI % Total Equity 0.96% $17.49 1.18% $16.06 $ Per Share 1.12% 1.15% 0.90% 0.84% $15.00 1.0% 0.78% 0.70% 0.70
Slide 12: Non-Interest Income
Non-Interest Income Diversification of Revenue SBA Gain on Sale • Commercial • Residential • Strong fee income momentum • Interchange fees BoeFly • Growing • Overdraft fees opportunities to • Maintenance fees expand product set Minimal dependency on income streams subject to regulatory pressures 12
Slide 13: Diversified and Granular Loan Portfolio
Diversified and Granular Loan Portfolio ($ in millions) Select Loan Portfolio Details as of Dec. 31, 2024 % of Segment $MM Total Underwriting Standards Project feasibility Developers background and expertise Strict loan to cost advances Rental fallback Construction $610 7% Plan and cost
Slide 14: Loan Portfolio Detail
Loan Portfolio Detail Type Balance Percentage Type Balance Percentage ($ in millions) CRE - Reta i l $ 613 7% OOC - Other $ 436 5% CRE - Other / Mi s c 591 7% OOC - Wa rehous e / Indus tri a l 247 3% Residential/ CRE - Offi ce OOC - Reta i l 420 5% 207 2% Consumer, CRE - La nd Loa n for Future OOC -
Slide 15: High Quality Asset Composition and Reserves
High Quality Asset Composition and Reserves Loan Loss Reserves / Loans Receivable Nonperforming Assets / Total Assets 1.27% 1.15% 1.12% 0.98% 1.00% 1.01% 1.02% 1.00% 0.80% 0.82% 0.76% 0.75% 0.58% 0.53% 0.53% 0.46% 0.48% 0.47% 0.51% 0.48% 0.43% 0.43% 0.48% 0.42% 0.38% 0.37% 0.23% 2019Y 2020Y 2021Y 20
Slide 16: Strong Underwriting Culture
Strong Underwriting Culture Comprehensive Underwriting Disciplined LTV and DSC standards Loan origination process supported by specialized teams Multi-Faceted Stress Testing of credit analysts Every loan tested during underwriting process High-quality direct commercial lending platform with
Slide 17: Deposit Franchise
Deposit Franchise ($ in millions) Deposit Composition as of Dec. 31, 2024 Uninsured Deposits as of Dec. 31, 2024 Total Bank Unconsolidated Deposits (RC-O Memo Demand Noninterest- item 1.) $ 11,996 bearing Time 18% 33% Estimated Uninsured Deposits (RC-O Memo item 2.) $ 6,883 Less: Collateralized Depo
Slide 18: Enhancing Our Deposit Franchise
Enhancing Our Deposit Franchise Tech Expanded Market Investments Business Lines Diversification Partnerships with Mantl and Nymbus provide opportunities to Continued momentum from our Florida market is rich with deposit leverage modern tech to C&I team is accelerating valuable opportunities efficien
Slide 19: Active M&A Environment
Active M&A Environment Opportunities in Market Disruption Talent • We’ve experienced increased success in attracting revenue generating talent • Due to disruption, individuals are seeking out ConnectOne New Business Lines • The opportunity to pick up clients who have been displaced by transactions c
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 BoeFly Today’s BoeFly Ecosystem With proprietary technology, BoeFly helps connect small to mid-sized businesses with professional loan brokers and lenders across the United States BoeFly operates as a sepa
Slide 22: Best-In-Class Efficiency
Best-In-Class Efficiency One of the Best Efficiency Ratios in the Industry Historical Historical Operating Operating Performance Performance Locations utilize technology to 66.5 % serve as “business hubs” $20MM 65.6 % 65.1 % 64.9 % Assets Per 62.0 % supporting clients beyond Employee 56.6 % 57.0 % g
Slide 23: Strategy & Vision
Strategy & Vision CNOB: A Compelling Investment Opportunity Consistent Financial Performance- Among Best-in-Class Solid Credit Culture with Disciplined Lending Philosophy Track Record of Superior Organic Growth Financially Prudent Acquiror and Experienced & Efficient Merger Integrator Benefitting fr
Slide 24: ConnectOne Bancorp, Inc.
& ConnectOne Bancorp, Inc.
Slide 25: Appendix
Appendix & ConnectOne Bancorp, Inc.
Slide 26: Loan Growth Metrics
Loan Growth Metrics Loan Portfolio & Origination Metrics ($ in millions) 10.00% 8.17% 8.42% 8.42% 8.38% $2,300 7.93% 7.92% 7.85% 9.00% 7.45% 8.00% $1,800 5.81% 5.82% 5.91% 5.87% 5.84% 7.00% 5.35% 5.49% 5.63% 6.00% $1,300 5.00% 4.00% $800 $586 $416 $422 $422 3.00% $319 $287 $279 $264 $311 $279 $253 $
Slide 27: Multifamily Portfolio Additional Detail
Multifamily Portfolio Additional Detail Multifamily as of Dec. 31, 2024 New York City (“NYC”) Multifamily Dec. 31, 2024 NYC Free Market 6% Multifamily All Other Loans Non-Majority NYC Rent Multifamily Outside 69% Regulated 6% 31% NYC 75% Majority NYC Rent Regulated 12% • NYC “Majority Rent Regulated
Slide 28: CRE Office Portfolio as of Dec. 31, 2024
CRE Office Portfolio as of Dec. 31, 2024 Geographic Composition NYC Office Majority Tenant Composition FL Other 2% Restaurant 6% Manufacturing 3% Other NYC 5% All Other Boroughs Professional 25% 13% Services 10% Private Schools Manhattan 10% 8% NJ Mixed Use 58% 1% NY (Ex NYC) 13% Commercial - Medica
Slide 29: Reconciliation of GAAP and Non-GAAP Measures
Reconciliation of GAAP and Non-GAAP Measures As of or For the Quarters Ended, ($'s in thousands) Dec. 31, 2024 Sep. 30, 2024 Jun. 30, 2024 Mar. 31, 2024 LTM Return on Equity Measures Net Income Available to Common Stockholders $ 18,862 $ 15,652 $ 17,547 $ 15,696 $ 67,757 Amortization of Core Deposit
Slide 30: Reconciliation of GAAP and Non-GAAP Measures, Continued
Reconciliation of GAAP and Non-GAAP Measures, Continued Source: Company Filings 1 Operating noninterest expense divided by operating revenue. 30
Slide 31: Reconciliation of GAAP and Non-GAAP Measures, Continued
Reconciliation of GAAP and Non-GAAP Measures, Continued As of or For the Quarters Ended, As of or For the Years Ended December 31, ($'s in thousands, except per share data) Dec. 31, 2024 Sep. 30, 2024 Jun. 30, 2024 Mar. 31, 2024 2019 2020 2021 2022 2023 Book Value Per Share: Stockholders equity $ 1,
Slide 32: Reconciliation of GAAP and Non-GAAP Measures, Continued
Reconciliation of GAAP and Non-GAAP Measures, Continued As of or For the Quarters Ended, YTD ($'s in thousands) Dec. 31, 2024 Sep. 30, 2024 Jun. 30, 2024 Mar. 31, 2024 2024 2019 2020 2021 2022 2023 Net Loan Charge-Off (Recoveries) Detail: Average Loans (Including Loans Held-for-Sale and Nonaccrual L
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