Slide 1: ConnectOne Bancorp, Inc. - Raymond James
& ConnectOne Bancorp, Inc. Raymond James April 28, 2016
Slide 2: Forward-Looking Statements
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, bu
Slide 3: ConnectOne Bancorp, Inc. Overview
ConnectOne Bancorp, Inc. Overview (NASDAQ: C “+ Holding company for ConnectOne Bank, headquartered in Englewood Cliffs, NJ *» Approximately $4.1 billion in total assets, $3.3 billion in total loans and $2.9 billion in total deposits + 21 locations across Manhattan, Bergen, Essex, Hudson, Mercer, Mon
Slide 4: Performance Trends: Core Diluted EPS
Pe nee Trend: Core Diluted EPS* $0.40 cAGR 16% $0.36 $0.36 $0.35 $0.35 $0.32 $0.33 $0.33 $0.30 $0.29 $0.27 $0.25 l $0.20 Q22014 32014 Q42014 «12015 Q22015 32015 Q42015 += Q1 2016 Pre-Merger *Excludes non-operating items. See appendix for a reconciliation of GAAP and non-GAAP measures. = & ConnectOne
Slide 5: Performance Trends (cont.): Tangible Book Value per Share
manc nds (con Tangible Book Value per Share $12.00 Consistently building shareholder value $11.00 $10.78 e036 $10.51 $9.86 $10.02 . 10.00 ‘ 2 $9.40 $9.57 $9.15 $9.00 $8.00 $7.00 $6.00 6/30/2014 9/30/2014 12/31/2014 3/31/2015 6/30/2015 9/30/2015 12/31/2015 3/31/2016 Pre-Merger See appendix for a reco
Slide 6: Performance Trends (cont.): Return on Average Tangible Assets
Performance Trends (cont.) Return on Average Tangible Assets* 1.60% 1.29% 1.26% 1.20% 1.21% 1.20% 1.22% 1.17% 116% 1.20% Ey 1.09% 1.01% 1.03% =| =—|— -— 0.80% 0.40% Q4 2014 Qi 2015 2.2015 3 2015 Q4 2015 Qi 2016 mCore GAAP == == =m Peer Median “Excludes non-operating items. See appendix for a reconci
Slide 7: Performance Trends (cont.): Return on Average Tangible Common Equity
nds (cont.) Performance Tr Return on Average Tangible Common Equity* 16.00% 14.56% 14.11% 13.99% 14.00% 43.47% 13.69% EX 13.47% 13.58% 13.53% 13.03% 12.07% 12.00% 11.28% 10.00% 8.00% Q4 2014 Q1 2015 Q2 2015 Q3 2015 Q4 2015 Qi 2016 mCore WGAAP = = mm Peer Median 1) *Excludes non-operating items. See
Slide 8: Performance Trends (cont.): Operating Efficiency Ratio
Performance Trends (cont.) Operating Efficiency Ratio* 95.0% Includes investments in technology and 85.0% infrastructure to support our growth 75.0% 5.0% ES oe ee ae ee ae ae ae ae ee ae ee eee eee ee 55.0% 44.8% 45.0% 41.8% 41.8% 41.5% 41.6% 2.5% 45.0% 38.4% “BEPsiEBEEE 25.0% Q2 2014 Q3 2014 Q4 201
Slide 9: Strong Capital Ratios
1 Stren At March 31, 2016 Capital Ratios Remain Strong after Redemption of SBLF Preferred Stock 12.00% fe 11.35% 11.23% 10.44% 10.44% 9.83% 10.00% 9.05% 9.19% 8.66% 8.00% ———= ——= 6.00% ——= 4.00% 2.00% 0.00% Leverage Ratio CET 1 Ratio Tier 1 Ratio Risk Based Capital Ratio Bancorp Bank ===<= Well Cap
Slide 10: Common Dividend Policy
Common Dividend Policy “* Current common dividend $0.075 per quarter, 1.8% yield * We are an "organic" growth oriented company, focused on increasing EPS and TBV ** ROATE of 13%+, combined with a dividend payout ratio in the 20%-25% range, allows us to reinvest in our franchise and provide continued
Slide 11: Loan Composition
mpo As of 3/31/16- $3.3 Billion Residential and Consumer 7% C&l 19% Construction 12% |< CRE-Owner Occupied 7% CRE-Multifamily 29% CRE-Non-Owner Occupied 26% - Comes oeaeaiil
Slide 12: Loan Portfolio Trends
n Portfolio Trends CAGR 22% $3,264 sear $2765 $3,099 $2,953 eee $2,427 $2,539 $2,000 $1,500 $1,006 $1,000 $500 | $0 6/30/2014 9/30/2014 12/31/2014 3/31/2015 6/30/2015 9/30/2015 12/31/2015 3/31/2016 Pre-Merger a = & ConnectOne Bar
Slide 13: Gross Loan Originations
$MM sma Gross Loan Originations $190 $188 $164 $124 $102 | fet 3/31/2015, 6/30/2015, 9/30/2015, ‘a Loan Paydowns tesiNet Growth 4.25% 3.97% 4.00% 3.75% $233 3.50% $203 $165 3.25% $146 3.00% $6 2.75% . 2.50% 12/31/2015 3/31/2016 Average Origination Rate & ConnectOne Bancorp
Slide 14: Commitment to Credit Quality
ment to edit Quality Comprehensive underwriting standards and processes * Disciplined LTV and DSC standards * Loan origination process supported by specialized teams of credit analysts We stick to what we do best ¢ High quality direct commercial lending * No reliance on participations or wholesale l
Slide 15: Commitment to Solid Credit Quality (cont.)
Commitment to Solid Credit Quality (con Non-Performing Assets & Charge-Offs 1.40% 1.20% 1.00% 0% 0.60% O58i6; _1.5796 BSS 0.44% 0.42% waox ; 0.37% 0.26% ame 0.20% "7 .07% 0.06% -% 0.02% =% 0.00% - 6/30/2014 9/30/2014 12/31/2014 3/31/2015 6/30/2015 9/30/2015 12/31/2015 3/31/2016 Pre-Merger HNPA Ratio
Slide 16: CRE as a Percentage of Total Risk Based Capital
800% 700% 600% 500% 400% 300% 200% 100% 0% Ratios prior to 2014 represent Legacy ConnectOne Bank CRE as a Percentage of Total Risk Based Capital % 646% 530% bans 479% g 450% 2009 2010 2011 2012 2013 2014 2015 CRE uw Construction ConnectOne has maintained high levels of CRE concentration for an exten
Slide 17: Multi-Family Lending
Mult % Total portfolio $941 million; approximately 90% located in Northern New Jersey * Portfolio average loan size $1.9mm; approximate duration 3 years; yield 3.70% “+ Targeted concentration: 25% to 35% of the total loan portfolio *» We have been originating multi-family loans since the inception o
Slide 18: C&I Lending
C&I Lendin Objective is to increase non-CRE lending and increase relationship deposits C&I teams are targeting both small and middle-market businesses, including manufacturing, service-related and distributors Business sizes range from $2 million to $100 million in average annual revenues. Credit ex
Slide 19: Taxi Medallion Portfolio
fedall Exclusively first lien direct obligations of medallion owners Exposure, net of reserves, totals $97.2 million at March 31, 2016 “ Just 2.98% of total loans and 25.44% of Bank's Tier 1 capital * No additional lending in this sector dating back to 2014 * $86.4mm TDR’s; all performing under rest
Slide 20: Deposit Composition
As of 3/31/16- $2.9 Billion Brokered Noninterest 12% Demand a 21% Listing 7% 7 Reciprocal om Interest Transaction 37% = & ConnectOne Bai
Slide 21: $650 $600 $550 $500 $450 $400 $350 $MM $609 $510 $482 $482 2/31/2014 3/31/2015
$650 $600 $550 $500 $450 $400 $350 $MM $609 $510 $482 $482 12/31/2014 3/31/2015 6/30/2015 9/30/2015 12/31/2015 3/31/2016 & ConnectOne Bancorp
Slide 22: Liquidity Management
Liquid agement ** We focus on core deposit growth, particularly noninterest bearing demand “+ Recent strategic initiatives have proven successful towards both growing upon existing relationships and attracting new clients ** ConnectOne has historically managed a loan-to-deposit ratio over 100%. Our
Slide 23: Three Ways to Win
Three V To W 1. Organic Growth Loan growth rates well in excess of market averages Increasing percentage of DDA to total deposits Efficient operating structure, with potential to further leverage Untapped sources of revenue Expansion through Opportunistic Acquisition Skilled acquiror Attractive curr
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— & ConnectOne Bancorp
Slide 25: ConnectOne Bancorp, Inc.
& ConnectOne Bancorp, Inc.
Slide 26: Appendix
& ConnectOne Bancorp, Inc. APPENDIX
Slide 27: Reconciliation of GAAP and non-GAAP measures
Reconciliation of GAAP and non-GAAP measures ‘Three Months Fnded Gollars in thousands, except share data) Mar. 31, Dee. 31, Sept. 30, Tune 30, Mar. 31, i ‘GAAP Farnih atin; 2016 2015 2015 2015 2015 ‘Net income (GAAP) Ss 131 S 958 S$ 108 “S sa S 1030 Less: preferred dividends 2 28 28 28 28 Net income
Slide 28: Reconciliation of GAAP and non-GAAP measures (cont.)
Recon ollars in thousands, except share data) ‘Core eamings available to common stockholders (non-GAAP) Add: preferred dividends Core net income (non-GAAP) Average assets Less: average intangible assets Average tangible assets, Retum on avg. assets (GAAP) Core retum on avg. assets (Non-GAAP) (2) Ret
Slide 29: Reconciliation of GAAP and non-GAAP measures (cont.)
Recon Gollars in thousands, except share data) Total noninterest expenses Partial settlements of pension obligation. Loss on debt extinguishment Charge due to wire fraud Foreclosed property expense Amortization of intangible assets and fair value marks, Operating non-interest expense [Net interest i
Slide 30: Reconciliation of GAAP and non-GAAP measures (cont.)
Reconciliation of GAAP and non-GAAP measures (cont. (dollars in thousands, except share data) rsiita al y, ‘Common equity Less: intangib ‘Tangible common equity wssets Totalassets Less: intangible assets ‘Tangible assets ‘Common shares outstanding ‘Common equity ratio (GAAP) ‘Tangible common equity
Slide 31: Net loan charge-offs and allowance reconciliation
Net lan charge-of: Charge-off: Recoveries ‘Net loan charge-offs 18 a % of average total loans (annualized) Nonacerual loans Other tea estate owned ‘Totalnonperforming assets Performing troubled debt restricturings il accruing [Loans past due 90 days and sti ‘Allowance for loan losses as a Total loan
Slide 32: Reconciliation of GAAP and non-GAAP measures (cont.)
ion of GAAP and non-GAAP measures (cont (1) Represents core eamings available to common stockholders divided by weighted average dilated shares outstanding, (2) Core net income divided by average assets. 3) Net income excluding amortization of intangible assets divided by average tangible assets. (4