Connectone Bancorp, Inc. · NASDAQ:CNOB
Connectone Bancorp — RBC Capital Markets Financial Institutions Conference 2016
31 slides from Connectone Bancorp's conference presentation, Mar 8, 2016
Slide 1: RBC Capital Markets Financial Institutions Conference
& ConnectOne Bancorp, Inc. RBC Capital Markets Financial Institutions Conference March 8, 2016 New York, NY
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. Ov * Holding company for ConnectOne Bank, headquartered in Englewood Cliffs, NU “+ Approximately $4.0 billion in total assets, $3.1 billion in total loans and $2.8 billion in total deposits “+ 22 locations across Manhattan, Bergen, Essex, Hudson, Mercer, Monmouth, Morris and
Slide 4: Core Diluted EPS
Core Diluted EPS* $0.45 $0.40 $0.35 $0.30 $0.25 $0.20 $0.15 $0.10 6/30/2014 9/30/2014 12/31/2014 3/31/2015 6/30/2015 9/30/2015 12/31/2015 Pre-Merger ‘Excludes non-operatingitems. See appendix fora reconciliation of GAAP and non-GAAP measures. CEE & ConnectOne Bancorp
Slide 5: Tangible Book Value per Share
rf rends (cont.) manc Tangible Book Value per Share éi2i00 Consistently building shareholder value 11.00 2 $10.51 $10.02 $10.26 $9.86 10.00 . $9.40 25057) $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 Pre-Merger ‘See appendix forareconciliation
Slide 6: Return on Average Tangible Assets
erformance Trends (cont.) Return on Average Tangible Assets* 1.40% 1.29% 1.20% 1.22% 1.20% 225% 1.22% 1.20% Lie 1.15% 1.01% 1.03% 1.00% 0.80% 0.60% 0.40% 12/31/2014 3/31/2015 6/30/2015 9/30/2015 12/31/2015 mCore GAAP — — — Peer Median 1) “excludes non-operating items. See appendix fora reconciliatio
Slide 7: Return on Average Tangible Common Equity
erformance Trends (cont.) Return on Average Tangible Common Equity* 16.00% 14.56% 14.11% 13.99% 14.00% —~13.47% 49.15% 13.47% 13.50% 13.45% 12.07% 12.00% 11.28% 10.00% 8.00% 12/31/2014 3/31/2015 6/30/2015 9/30/2015 12/31/2015 wCore WGAAP — — — PeerMedian 1) “excludes non-operating items. See appendi
Slide 8: Efficiency Ratio
Includes investments in technology and infrastructure to support our growth 95.0% 45.0% padi 45,078 42.0% 42.0% 41.9% 42.8% 38.4% 25.0% 6/30/2014 9/30/2014 12/31/2014 3/31/2015 6/30/2015 9/30/2015 12/31/2015 Pre-Merger — — — PeerMedian» €xcludesnon-operatingitems. See appendix fora reconciliation of
Slide 9: Capital Strength
Capital Strength At December 31, 2015 14.00% 12.00% SLT7% 44.91% — 10.55% 10.55% soci 9.61% =| -—= 10.00% 9.07% 9.14% 8.00% —— 6.00% 4.00% 2.00% 0.00% Leverage Ratio CET 1 Ratio Tier 1 Ratio Risk Based Capital Ratio Bancorp WBank = = Well Capitalized ee & ConnectOne Bancorp
Slide 10: Loan Composition
an Composit As of 12/31/15- $3.1 Billion Residential and Consumer 8% C&l Construction 11% CRE-Owner Occupied 8% CRE-Multifamily 28% (CRE-Non-Owner Occupied 27% ——EEEEee _ & Connectone
Slide 11: Loan Portfolio Trends
Loan Portfoli ends $3,099 $2,953 $2,765 $2,539 $2,641 $2,427 z $1,006 $MM [| 6/30/2014 9/30/2014 12/31/2014 3/31/2015 6/30/2015 9/30/2015 12/31/2015 Pre-Merger SS % ConnectOne Bancorp
Slide 12: Loan Originations
15 Loan Originatic $450 4.25% $400 3.97% 3.88% anon $350 3.74% 3% — $307 3.75% $300 $250 3.50% $203 190 $200 ae $: $188 soe $146 $150 $124 rT $102 S008 100 $6; ae $s ip 2.75% Sum $- 2.50% 3/31/2015 6/30/2015 9/30/2015 12/31/2015 MGross Loan Originations tsdLoanPaydowns toiNetGrowth -e-Average Origin
Slide 13: Commitment to Solid Credit Quality
Commitment to Solid Cri “+ 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 wh
Slide 14: Commitment to Solid Credit Quality (cont.)
it Quali (cont. Commitment to Solid Cre Non-Performing Assets & Charge-Offs 1.40% 1.20% 1.00% 0.80% TTT TT ES SS 0.60% 0.58% 0.44% 0.42% oo 0.37% 0.37% 0.26% 022%; 0.20% 04% E--. D072 01% -% 10.02% -% 0.00% a = 6/30/2014 9/30/2014 12/31/2014 3/31/2015 6/30/2015 9/30/2015 12/31/2015 Pre-Merger NPA Ra
Slide 15: Commercial Real Estate Lending Focus
Commercial Real 800% 700% 600% 500% 400% 300% 200% 100% 0% {state Lending Focu CRE as a Percentage of Total Risk Based Capital 9% 646% 608% i: L : . E ; : 2010 2011 2012 2013 2014 2015 CRE wConstruction CRE lending is nothing new to ConnectOne We have maintained high levels of CRE concentration for
Slide 16: Multi-Family Portfolio
Multi-Family Portfolio * Total portfolio $881 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 focus on relationship lending to seasoned op
Slide 17: C&I Lending
I Lending Objective is to increase non-CRE lending and increase relationship deposits C&l 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 ext
Slide 18: Medallion Portfolio
edallion Portfolio * Exclusively first lien direct obligations of medallion owners, representing just 3.3% of total loans and 27.6% of Bank’s Tier 1 capital “ Total exposure of $103.2 million at December 31, 2015 * No additional lending in this sector dating back to mid-2013 * $78.5mm TDR’s; all per
Slide 19: Total Deposit Composition
Total Deposit Composit As of 12/31/15- $2.8 n Brokered 12% Noninterest Demand Listing 23% 5% Reciprocal 10% Interest Transaction 37% ne — & ConnectOne Bar
Slide 20: Noninterest-bearing Deposit Trends
Noninterest-bearing Deposit Trends CAGR 38% $651 $553 $587 $471 $483 $480 $238 $MM l 6/30/2014 9/30/2014 12/31/2014 3/31/2015 6/30/2015 9/30/2015 12/31/2015 Pre-Merger SS % ConnectOne Bancorp
Slide 21: Focus on core deposit growth, particularly noninterest bearing demand
«+ We focus on core deposit growth, particularly noninterest bearing demand + Recent strategic initiatives have proven successful towards both growing upon existing relationships and attracting new clients “+ ConnectOne has historically managed a loan-to-deposit ratio over 100%. Our loan to deposit
Slide 22: Organic Growth, Acquisitions and Franchise Value
4. 2. 3. Organic Growth Loan growth rates well in excess of market averages Increasing percentage of DDA to total deposits Efficient operating structure, with potential to further leverage Untapped sources of revenue Expansion through Opportunistic Acquisition Skilled acquiror Attractive currency re
Slide 23: ConnectOne
& ConnectOne |
Slide 24: ConnectOne Bancorp, Inc.
&H ConnectOne Bancorp, Inc. & ConnectOne Bancorp
Slide 25: Appendix
& ConnectOne Bancorp, Inc. APPENDIX & ConnectOne Bancorp
Slide 26: Reconciliation of GAAP and non-GAAP measures
Reconciliation of GAAP and non-GAAP measures Three Months Ended Dec. 31, Sept.30, ‘June 30, March 31, Dec. 31, ollars in thousands, except share data) 2015 2018 2018 2015 2014 Earnings. EPS and Operating Data Net income (GAAP) S$ 9568 $ 1082 $ 1050 $ 1039 $ 8038 Less: preferred dividends 28 28 2B 28
Slide 27: Reconciliation of GAAP and non-GAAP measures (cont)
Appendix Reconciliation of GAAP and non-GAAP measures (cont) (@ollars in thousands, except share data) 2018 2018 2015, 2015 2014 ‘Retum on Assets Measures: Core esmnings available to common stockholders (non-GAAP) s S 1058 $ 10153 $9,907 Ss Add: prefered dividends 28 28 2 Core net income (non-GAAP)
Slide 28: Reconciliation of GAAP and non-GAAP measures (cont)
Reconciliation of GAAP and non-GAAP measures (cont) Three Months Ended Dec.31, ‘Sept. 30, June30, March 31, Dec.31, (@ollars in thousands, except share data) 2015 2015 2015 2015 2014 Efficiency Measures Total noninterest expenses S 3579 S$ 13301 S$ 149% SIDES SS. Partial settlements of pension oblig
Slide 29: Reconciliation of GAAP and non-GAAP measures (cont)
Reconciliation of GAAP and non-GAAP measures (cont) Asof Decal, Sepe 30, June 30, March 31, Dees 31, (Gollars in thousands, except share data) 2018 2018 2018 2018 2014 Capital Ratios and Books Value per Share Common equity S $0609 S$ 459896 $452,752 S$ dhoNs Ss 434969 Less: intangible assets (149,81
Slide 30: Asset Quality
Asof Dec. 31, ‘Sept. 30, Tune30, March 31, De. 31, Gollars in thousands, except share data) 2018 2018 2018 2018 2014 Asset Quality ‘Nonaccrual loans S$ 2R7 S$ 288 $ 1245 $ 1458 S$ 11610 Other real estate owned 3244 1,564 870 1108 Total nonperforting assets S$ 33285° S161 “S70 = Sis Loans past due 90
Slide 31: Reconciliation of GAAP and non-GAAP measures (cont)
endix Reconciliation of GAAP and non-GAAP measures (cont) (Represents core eamings available to common stockholders divided (2) Core net income divided by average assets. (Net income excluding amortization of intangible assets divided by average tangible assets. (4) Core net income divided by averag
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