Connectone Bancorp, Inc. · NASDAQ:CNOB
Connectone Bancorp — Investor Presentation (November 2021)
24 slides from Connectone Bancorp's investor presentation, Nov 10, 2021
Slide 1: CNOB November 2021 Investor Presentation
CNOB November 2021 Investor Presentation
Slide 2: About ConnectOne Bancorp, Inc.
About ConnectOne Bancorp, Inc. Client first and sense of urgency in every business decision from top to bottom of organization Strong Culture Founde d in 2005 to capitalize on poor customer service offered to middle market clients by other institutions $ 7.9 Billion in Total Assets 2 One of the most
Slide 3: High Operating Performance: 2021 Q3 Financial Highlights
High Operating Performance 3 2021 Q3 Financial Highlights Note: See Appendix 1. PPNR represents pre - tax net income excluding the impact of merger and restructuring charges and provision for loan losses. See appendix for a reconciliation of GAAP and non - GAAP measures. 2. As reported by S&P Global
Slide 4: Strong Core Net Interest Margin
4 Strong Core Net Interest Margin Source: Company Filings, S&P Global Market Intelligence 1. Represents annualized metrics for the quarters ended March 31, 2021, June 30, 2021 and September 30, 2021 respectively. 2. Net Interest Margin and Interest - Earnings Assets are reflected on a fully taxable
Slide 5: Robust Profitability and Capital Generation
5 Robust Profitability and Capital Generation Source: Company Filings, S&P Global Market Intelligence Note: Please refer to Non - GAAP reconciliation in Appendix. . 1 As reported by S&P Global Market Intelligence, peers include BHLB , BRKL , CUBI , EBTC , EGBN , FFIC , FLIC, INDB , LBAI , OCFC , PFS
Slide 6: Non-Interest Income Diversification of Revenue
Non - Interest Income 6 Diversification of Revenue Gains on Sale • SBA Division • Commercial • Residential BoeFly • Strong fee income momentum • Growing opportunities to expand product set Minimal dependency on income streams subject to regulatory pressures
Slide 7: Diversified and Granular Loan Portfolio
Project feasibility Developers background and expertise Strict loan to cost advances Rental fallback Plan and cost review Interest reserve Personal guarantees with reliance on liquidity Bank engineer oversight and inspection Leveraging technology using built software in the constru
Slide 8: Loan Portfolio Detail (excludes PPP)
8 Loan Portfolio Detail (excludes PPP) ($ in millions) Note: Numbers may not sum to 100% due to rounding. Other CRE , 37% Multifamily , 33% Business Loans , 26% Residential/ Consumer , 4% Type Balance Percentage Type Balance Percentage CRE - Other / Misc $ 560 9% OOC - Retail $ 146 2% CRE - Retail 4
Slide 9: High Quality Asset Composition and Reserves
0.74% 0.76% 0.77% 0.75% 1.27% 1.28% 1.23% 1.19% 2016Y 2017Y 2018Y 2019Y 2020Y 1Q 21 2Q 21 3Q 21 * * 9 High Quality Asset Composition and Reserves Nonperforming Assets / Total Assets Net Charge - Offs / Avg. Loans Loan Loss Reserves / Loans Receivable ACL By Segment Type as of September 30, 2021 * Re
Slide 10: Strong Underwriting Culture
10 Strong Underwriting Culture 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 growth Multi - Faceted Stres
Slide 11: COVID-19 CARES Act Deferrals
11 ($ in millions) Source: Company Information and Company Designations As of September 30, 2021 loan deferments represent under 0.2% of total loans, down ~90% from June 30, 2020 We continue to expect loans to migrate off deferment status over the remaining course of 2021 The Company was an ea
Slide 12: Deposit Franchise
Deposit Franchise 12 Deposit Composition as of 9/30/2021 Total Deposits $6.4 billion 2021 YTD Cost of Total Deposits 0.42% Demand Noninterest - bearing 24% Nonmaturity interest - bearing 57% Time 19% $- $1,000 $2,000 $3,000 $4,000 $5,000 $6,000 $7,000 $8,000 Year Ended 2016 Year Ended 2017 Year Ende
Slide 13: Organic Growth
Organic Growth Strategically placed offices in attractive markets make for strong organic growth potential 13 Market is largely dominated by the largest institutions in the country, leaving tremendous opportunity for banks catering to middle market businesses New York City Market Densely populated,
Slide 14: Completed Acquisitions and BoeFly
14 Completed transaction on January 2, 2019 and integrated systems less than 30 days after closing Value - add transaction; many benefits realized — Loan - to - deposit ratio improved — CRE concentration reduced — Net interest margin widened — Upward trajectory of tangible book value per share c
Slide 15: Active M&A Environment
15 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 • The opportunity to pick up clients who have been displaced by transactions
Slide 16: Acceleration of Growth: Tech-Forward Leadership
16 Acceleration of Growth: Tech - Forward Leadership Franchisors Banks Potential Franchisees Completed small business loan packages Building the Future of Banking Identify early - midstage FinTech providers interested in forming strategic relationships with ConnectOne Identify and implement mode
Slide 17: One of the Best Efficiency Ratios in the Industry
One of the Best Efficiency Ratios in the Industry 17 Best - In - Class Efficiency Historical Operating Performance Historical Operating Performance Locations utilize technology to serve as “business hubs” supporting clients beyond geographic footprint $ 18.1 M Assets Per Employee Efficiency ratio in
Slide 18: Strategy & Vision
Strategy & Vision 18 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 from Current Industry Consolidation
Slide 19: ConnectOne Bancorp, Inc.
& ConnectOne Bancorp, Inc.
Slide 20: Appendix
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Slide 21: Reconciliation of GAAP and Non-GAAP Measures
Reconciliation of GAAP and Non - GAAP Measures 21 Source: Company Filings 1 Earnings available to common stockholders excluding amortization of intangible assets divided by average tangible common equi ty. 2 Adjusted net interest margin excludes impact of purchase accounting fair value marks. ($'s i
Slide 22: Reconciliation of GAAP and Non-GAAP Measures, Continued
Reconciliation of GAAP and Non - GAAP Measures, Continued 22 Source: Company Filings 1 Operating noninterest expense divided by operating revenue. As of or For the ($'s in thousands) As of or For the Quarters Ended, Nine Months Ended, As of or For the Years Ended December 31, Sep. 30, 2021 Jun. 30,
Slide 23: Reconciliation of GAAP and Non-GAAP Measures, Continued
Reconciliation of GAAP and Non - GAAP Measures, Continued 23 Source: Company Filings 1 Tangible common equity divided by common shares outstanding at period end. ($'s in thousands, except per share data) As of or For the Quarters Ended, As of or For the Years Ended December 31, Sep. 30, 2021 Jun. 30
Slide 24: Reconciliation of GAAP and Non-GAAP Measures, Continued
Reconciliation of GAAP and Non - GAAP Measures, Continued 24 ($'s in thousands) As of or For the Years Ended December 31, Sep. 30, 2021 Jun. 30, 2021 Mar. 31, 2021 2016 2017 2018 2019 2020 Net Loan Charge-Off (Recoveries) Detail: Average Loans (Including Loans Held-for-Sale and Nonaccrual Loans) 6,4
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