Connectone Bancorp, Inc. · NASDAQ:CNOB

Connectone Bancorp — Raymond James Conference (November 2015)

36 slides from Connectone Bancorp's conference presentation, Nov 16, 2015

  1. Slide 1: ConnectOne Bancorp, Inc.

    a & ConnectOne Bancorp, Inc. Raymond James November 16, 2015 New York, NY

  2. Slide 2: Forward-Looking Statements

    Forward-Looking Statements statements about our expectations, beliefs, plans, predictions, forecasts, djecti fi icipat potential,” ill,” “estimate,” “plans,” “projects,” “continuing,” ongoing.” H expects, ‘Sntends" and. similar words of phrases. “should,” ‘Risk Factors” in our Annual Report on Form

  3. Slide 3: Company overview

    “3 “4 bilion | Me n total loans and $2.7 billion in é total dep New York Ci oo * 22 locations across Manhattan, Bergen. Essex, Hudson, Mercer, Monmouth, Mortis and Union counties y-bi banking institutions mae increase: technology and lending capabiis sania Strategically placed offices throughout the

  4. Slide 4: oo ii it instituti i leaving

    oo ii it instituti i leaving = & ConnectOne Bancorp

  5. Slide 5: Performance Trends: Core Diluted EPS

    rfo Trend: Core Diluted EPS* 21% Increase from prior year quarter $0.34 $0.35 $0.32 $0.33 $0.29 $0.27 ; Q2 2014 Q3 2014 Q4 2014 Q1 2015 Q2 2015 Q3 2015 Pre-Merger Excludes non-operating items. See appendix for a reconciliation of GAAP and non-GAAP measures. & ConnectOne Bancorp

  6. Slide 6: Performance Trends: Tangible Book Value per Share

    P mance nds (c Tangible Book Value per Share value 10.26 9.86 $10.02 $ $9.57 $s $9.15 $9.40 Q2 ee Q3 2014 Q4 2014 Q1 2015 Q2 2015 Q3 2015 Pre-Merg & ConnectOne Bancorp

  7. Slide 7: Performance Trends: Net Interest Margin

    P ‘ormance Trends (c Net Interest Margin* 3.50% 3.46% 3.45% 3.43% 3.42% 3.40% 3.35% 3.35% 3.29% 3.29% 3.30% — —— a —_ —_ 3.25% 3.20% Q2 2014 Q3 2014 Q4 2014 Qi 2015 Q2 2015 Q3 2015 Pre-Merger —_ == = Peer Median 1) Median reflects th & ConnectOne Bancorp

  8. Slide 8: Performance Trends: Operating Efficiency Ratio

    P ‘ormance Trends (c Operating Efficiency Ratio* 95.0% Includes investments in sechnolooy and infrastructure to 85.0% support our growth 75.0% a 55.0% 44.8% 45.0% yi i : 42.0% 42.0% 41.9 tee 38.4% % 35.0% | 25.0% 222014 = 03201442014 QA 2015 «220153. 2015 reer mem Peer Median? Median reflects the mo

  9. Slide 9: Performance Trends: Core Return on Average Tangible Assets

    P mance Trends (c Core Return on Average Tangible Assets* I TT | | ] Q2 2014 Q3 2014 Q4 2014 Q1 2015 Q2 2015 Q3 2015 Pre-Merger — = —Peer Median 1) Median reflects the most & ConnectOne Bancorp

  10. Slide 10: Performance Trends: Core Return on Average Tangible Common Equity

    mance Trends (c Core Return on Average Tangible Common Equity* 16.00% 12.00% 8.00% 4.00% 0.00% 12.04% 12.15% 2014 Q3 2014 ne 2 Mote 13.75% Q4 2014 Qi 2015 — = —Peer Median 1) 13.47% 13.50% Median reflects the most & ConnectOne Bancorp

  11. Slide 11: Capital ratios at September 30, 2015

    At September 30, 2015 14.00% 12.00% 10.00% 8.00% 6.00% 4.00% 2.00% 0.00% 10.22% Leverage Ratio CET 1 Ratio mBancorp mm Bank 10.83% 9.82% Tier 1 Ratio Well Capitalized 11.94% 70 | | Risk Based Capital Ratio & ConnectOne Bancorp

  12. Slide 12: Interest Rate Risk

    nterest Rate Ri We manage our it ¢ Our rate shocks higher interest ° mark & ConnectOne Bancorp

  13. Slide 13: Total deposits trend

    $2,569 $2,667 $2,469 $2,476 $2,496 | | | | $MM I 2014 Q3 2014 Q4 2014 Ql 2015 Q2 2015 Q3 2015 ee Merger & ConnectOne Bancorp

  14. Slide 14: Increase over past months

    23% increase over jonths past 6 $587 $553 sama $493 $480 $238 1 $MM Q3 2014 42014 Qi 2015 Q2 2015 Q3 2015, Q2 2014 Pre-Merger & ConnectOne Bancorp

  15. Slide 15: Deposit composition as of 9/30/15

    As of 9/30/15- $2.7 Billion rokered 1% Noninterest Demand 22% Listing 5% Time 15% | Reciprocal 11% Interest Transaction 36% = = & ConnectOne B;

  16. Slide 16: Total Loan Portfolio Trends

    tal Loan P Trends Record quarterly loan growth of $188mm $2,953 $2,539 $2,641 pling $2,427 $1,006 $MM Q2 2014 Q3 2014 Q4 2014 Qi 2015 Q2 2015 Q3 2015 Pre-Merger & ConnectOne Bancorp

  17. Slide 17: Loan Composition

    L n Compos' As of 9/30/15- $3.0 Billion Residential and Consumer 8% CRE-Owner Occupied 9% CRE-Non-Owner Occupied 26% & ConnectOne

  18. Slide 18: Pre-merger vs post-merger loan growth

    Pre-merger Post-merger $230 $180 $80 $30 $MMS(20) Q2 ants 3s otis 283 20 2014 att ota 20s mis 201s Legacy Union Center m™ConnectOne & ConnectOne Bancorp

  19. Slide 19: Average Per Quarter Loan Growth

    Per Quarter Loan Growth 27.0% increase $124.8MM $98.3MM Average pre-merger Average post-merger mLegacy Union Center mConnectOne = & ConnectOne Bancorp

  20. Slide 20: Loan originations, paydowns and origination rate

    $500 4.25% $450 4.00% $400 $350 3.75% $300 3.50% $250 9 $200 3.25% $150 3.00% $100 2.75% $50 $MMs- 2.50% @l§Gross Loan Originations lm Loan Paydowns mm Net Growth ~lieAverage Origination Rate & ConnectOne Bancorp

  21. Slide 21: Disciplined LTV and DSC standards

    * Disciplined LTV and DSC standards . cue We stick to what we do best ei aay of ° * Stay away from riskier lending, e.g., indirect auto, 2nd lien positions, leasing, sub-prime’ ° Multi-faceted stress testing ° . . f the portfoli loan workout specialists & ConnectOne Bancorp

  22. Slide 22: Non-Performing Assets & Charge-Offs

    Non-Performing Assets & Charge-Offs 1.40% 1.20% 1.00% 0.80% 0.60% 0.40% 0.20% 0.00% 0.37% 0.42% 0.07% i. a i. | -% 0.02% Q2 2015 Q3 2015 — = = Peer Median) Median reflects th & ConnectOne Bancorp

  23. Slide 23: Portfolio average loan size

    * Portfolio avg. loan size $1 Shy away from “one-off” transactions. 75% LTV anda 1 & ConnectOne Bancorp

  24. Slide 24: C&I Lending

    C&I Lending As of 9/30/15- $567 Million C&1 15.7% DP Taxi 3.5% =F & ConnectOne Bancorp

  25. Slide 25: C&I lending description

    e i i i including cal manufacturing, revenues. i i 9 $ & i i t i ing, but not limited to, working capital, eo Jers - & ConnectOne Bancorp

  26. Slide 26: Taxi medallion lending

    ’s tier 1 capital. owners, f Bank Only NYC N dali y medallion: i I , $ 000 for a single dallion thi LTV of our %. Re-categorized $75mm as TDRs y mature over the next 3 years and industry trends. & ConnectOne Bancorp

  27. Slide 27: Growth strategy: Organic Growth, Franchise Value

    1. Organic Growth leverage * Untapped sources of revenue “Skilled acquiror 3. Franchise Value * Valuable geographic footprint “Loyal and profitable client base ° i value & ConnectOne Bancorp

  28. Slide 28: ConnectOne Bancorp

    E <& ConnectOne 3ancc

  29. Slide 29: , Inc.

    & ConnectOne Bancorp, Inc. & ConnectOne Bancorp

  30. Slide 30: Appendix

    & ConnectOne Bancorp, Inc. APPENDIX & ConnectOne Bancorp

  31. Slide 31: Reconciliation of GAAP and non-GAAP measures

    Appendix Reconciliation of GAAP and non-GAAP measures ‘Three Months Ended Sept. 30, Tune 30, ‘March 31, Dec. 31, Sept. 30, (dollars in thousands, except share data) 2015 2018 2015 2014 2014 Net income (GAAP) S$ 1082 $ 1052 S$ 10379 S$ 8023 S$ 1,766 Less: preferred dividends 2B 28 28 2B 28 ‘Net incon

  32. Slide 32: Reconciliation of GAAP and non-GAAP measures

    Appendix ‘Three Months Ended ‘Sept. 30, ‘June 30, ‘Mareh 31, Dee.31, Sept. 30, Gollars in thousands, except share data) 2015 2015 2015, 2014 2014 ‘Refurnon Assets Measures Ada: preferred dividends Core net income (non-GAAP) 31086 “SOILS 8S STD SBT Average assets 3 37250 S$ 355157 S$ 34658 $ 3304 S 3

  33. Slide 33: Reconciliation of GAAP and non-GAAP measures

    Appendix Recon: tnree Months Ended Sep30, June30,—- March31,—Dee.3, Sept 30, ete teenie crt ty 2015 2015 2015 2014 2014 ‘Total noninterest S 3M S$ 49M SRB «SAS IGL-S—_25,400 Paral selene ren obligation as) as) 659) : Mergersclated exp : : : Asie, e789 Loss on debt extinguishment : 397, s : (4550) od

  34. Slide 34: Reconciliation: capital ratios and book value per share

    Appendix Recon: Gbllars in thousands, except share data) Capital Ratios and Book Value per Share Common Tene nangibeasets Tangible common equity Total assets Less intangibles angible assets ‘Common shares outstanding ‘Common equity ratio (GAAP) ‘Tangible common equity ratio (non-GAAP) (10) Regulator

  35. Slide 35: Reconciliation: asset quality

    Appendix Reconciliation of GAAP and non-GAAP measures (cont,) Gbllars in thousands, except share data) Asset Quality ‘Nonacenual loans (Other tal estate owned ‘Total nonperforming assets Loans past due 90 days and still aceruing Nonacorual loans as a % of loans receivable Nonperforming assets as a %

  36. Slide 36: Reconciliation of GAAP and non-GAAP measures notes

    Reconciliation of GAAP and non: JAAP measures (cont, 2 Core net income divided by average assets. (8) Opera Adj (20) Tangible common equity divided by tangible assets. (nD Tangi So a & ConnectOne Bancorp

ConnectOne Bancorp — Raymond James Conference (November 2015) on 6ix