Connectone Bancorp, Inc. · NASDAQ:CNOB
Connectone Bancorp — Investor Presentation (September 2024)
33 slides from Connectone Bancorp's investor presentation, Sep 18, 2024
Slide 1: ConnectOne Bancorp, Inc. Investor Presentation
& ConnectOne Bancorp, Inc. CNOB Investor Presentation September 2024
Slide 2: About ConnectOne Bancorp, Inc.
About ConnectOne Bancorp, Inc. ConnectOne Bancorp, Ine. is a modern financial sevices company with $9.7 billion in assets. It operates through its bank subsidiary, ConnectOne Bank, andits fintech subsidiary, BoeFly. ConnectOne Bank isa high-performing commercial bank offering a full suite of product
Slide 3: Organic Growth
Organic Growth Opportunities to expand as a result of post-pandemic trends Il Densely populated, lucrative markets Il Strong demand for personalized service among small to mid-sized business owners Wl Our target market is largely dominated by the largest institutions in the country, leaving tremendo
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 1 Digital investments coupled with ability to attract top talent allows for dynamic expansion Banking Hub model allows ConnectOne t
Slide 5: Merits of the CNOB-FLIC Merger
Merits of the CNOB-FLIC Merger Strategi Accelerates CNOB's Long Island Expansion Propels CNOB Over $10B with Minimal Financial Impacts FLIC’s Core Deposit Base Benefits from CNOB's Technological Enhancements Compatible Cultures and Risk-adverse Philosophies Valuation Attractively Priced at 75% of TB
Slide 6: Pro Forma CNOB-FLIC Franchise Merger Overview
Pro Forma CNOB-FLIC Franchise Merger Overview een ry ANFirst| 40 Rene i Suffolk County Deposit Market Share Nassau County Deposit Market Share "eon fin shore 9 ‘Witt Fa Gow wees Aap nc large ne 0 an ton =) shave + Dive Conmanyaromawels FH HS 2 bamtntae F) zon 32 4 opi isa ge 1s 25 > ‘ct mos
Slide 7: Estimated Financial Impact of CNOB-FLIC Merger
Estimated Financial Impact of CNOB-FLIC Merger Including Rate Marks Excluding Rate Marks"? With $100 Million Debt Raise 36% 9% 7.9% 9.8% 13.3% 445% 2025E EPS 2025E EPS TCE ceri Total Capital cRe® Accretion Accretion” Ratio Ratio Ratio Total Capital Debt Raise 12% 0.5% 7.9% 9.8% 12.4% 476% rev Tv Tee
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 transaction on January 2, 2019 and integrated systems less than 30 days after closing Value-add transaction; many benefits realized Loan-todeposit ratio improved ‘GRE concentration reduced Net interest marg
Slide 9: Operating Performance
Operating Performance LTM and 2024 Q2 Financial Highlights 1.20% 9.5% UTM Ppa’ as. % ofaverage Tangible Common Equity Ratio 2.73% 1.49% LTM Net interest LTM operating NIE to Margin Average Assets ote See Append 0.82% LTM Core Return ‘on Assets et of mere ond ‘See appone fora reconelation of GAAP and
Slide 10: Core Net Interest Margin
Core Net Interest Margin Yields and Costs ioe 5.02% sar% 5.08% 4.80% 4.90% 4.59% ene 5.63% ss 487% 3.23% 3.30% 447% rm Asse aoe 2018v 20207 2ozv ony 2023v 1024 2028 e-Loans—Intorest-eaming Assets —e=Costof Funds Net Interest Margin? 266% 3.69% 265% 268% 2019¥ 2020¥ 2o21y 2022 2023y 1024 2024 penny n
Slide 11: Robust Profitability and Capital Generation
Robust Profitability and Capital Generation Return on Average Assets Tangible Book Value per Share Growth al $30.00 120% ate 2500 . $23.14 $2345 7.9%, 2000 P ao 2 & siso0 i ° 3.0% 3 g $1000 $500 aa08 zovey 020 z021y 2022 2028 1024 2028 aovev 2020v 2021 2022 2020 2024 == cnos TeV w= Poor AOCI Total E
Slide 12: Non-Interest Income
Non-Interest Income Diversification of Revenue SBA Gain on Sale Commercial + Residential + Strong fee income momentum BoeFly + Growing opportunities to expand product set + Interchange fees + Overdraft fees Maintenance fees Minimal dependency on income streams subject to regulatory pressures
Slide 13: Diversified and Granular Loan Portfolio
Diversified and Granular Loan Portfolio (8 in millions) Select Loan Portfolio Details as of June 30, 2024 sot comet om To sundads Construction $639 8% Multifamily $2,499 31% HS ney Non-owner Occupied CRE al ada eer rrr i neeeine es Business Loans on) | ae Ee oo faite Sie tos ‘os cp ig et Fg names
Slide 14: Loan Portfolio Detail
Loan Portfolio Detail ($ in millions) Residential/ Consumer, 3% Business Other CRE, Loans, 29% on Ti [panes [Perera Te [panera eve- omer mize se nf fooc-worenousesinaswsat sass ene- ets 2 24f fooe- omer 2x eve orice a sn Jooc- neva 2 al eve warenoure/ 0c: ofice/Warchouse or ndsstnt ns ax fined Use n
Slide 15: High Quality Asset Composition and Reserves
High Quality Asset Composition and Reserves Loan Loss Reserves / Loans Receivable 127% 2 1ase 112% 2.98% 1.99%, 1.07 | | | 2orey 2020v 2oz1v2ozav zozsy 024 2024 ACL By Segment Type as of June 30, 2024 Seamont Type Balance ($000) Commercial $20,020 ‘Commercial Real Estate 53098 Commercial Constuction
Slide 16: Strong Underwriting Culture
| Strong Underwriting Culture Comprehensive Underwriting 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 L
Slide 17: Deposit Franchise
Deposit Franchise (8 in millions) Deposit Composition as of June 30, 2024 Average Total Deposits June 30, 2024 $10,000, $9,000 cag 12% $6,000, $7,000 $6,000, | ‘YearEndd eur ended eu Ended ear Ended ear Ended quarter 202020212022 ended June 2024 Note: Numbers mayo sumo TOD de rounding Uninsured Depo
Slide 18: Enhancing Our Deposit Franchise
Enhancing Our Deposit Franchise Tech Investments ships with Mant and. provide opportunities to leverage modern tech to efficiently grow dep« Continue to expand our posit ware enhancing Expanded Business Lines Continued momentum from our C&l team erating valuable deposit opportuni ‘The addition of ne
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
Slide 20: Acceleration of Growth: Tech-Forward Leadership
| Acceleration of Growth: Tech- Forward Leadership Technology Iding the Future of Banking . technology support the growth performance, low efficiency model : i bank’s online and mobil solutions that pre 9 compliance 'y and 1 Partnerships with providers outside of the banking industry to build powerf
Slide 21: Acceleration of Growth: Tech-Forward Leadership
Acceleration of Growth: Tech-Forward Leadership i ing on Niche Specific Opportunit 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 1 Boer ew amare operon ‘ao boefly 7 m
Slide 22: Best-In-Class Efficiency
Best-In-Class Efficiency One of the Best Efficiency Ratios in the Industry Historical Operating Performance Locations utilize technology to $19MM serve as “business hubs” o5% Assets Per eae supporting clients beyond eax al : Employee geographic footprint caay (STR ELS so UR 3574 z * lj | = 38.2%} be
Slide 23: A People First Culture with Recognized Success
| A People First Culture with Recognized Success Best Places Rv aha Pistdtatbe toWork WELL Health-Safety Rated! Ip cance iet
Slide 24: 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 25: ConnectOne Bancorp, Inc.
& ConnectOne Bancorp, Inc.
Slide 26: Appendix
Appendix SPOS HSSSSSSHHs & ConnectOne Bancorp, Ine.
Slide 27: Loan Growth Metrics (ex. ppp)
Loan Growth Metrics (ex. ppp) a ae sam sans = sas 85% army asus ———— $2,300 —— 779% ses os $1,800 ene —, 5.75% x ——_— oe $1900 gs cae — ae ‘$800 St gst, 275% ao Re Ble Be Oe 1 sosiygy 52009907 sure Tray oe sea 5 2 mum $(200) = = me 0.25% sai $s) $(146) voz = sazoez, «= taztes «nazz sazeas, ames, «ta
Slide 28: Multifamily Portfolio Additional Detail
Multifamily Portfolio Additional Detail New York Cy CNYC") Mlifaly June 20,2024 ya Free Market 6% Za NYC Rent Regulated 6% Mojtiy NYE Rent Replted + NYC “Majority Rent Regulated” portfolio approx. $323 million + “Value-add Strategy” of approx. $53 million, or 0.6% of total loan port + O71 iginated w
Slide 29: CRE Office Portfolio as of June 30, 2024
CRE Office Portfolio as of June 30, 2024 Geographic Composition NYC Office Majority Tenant Composition FL other rary Manufacturing Restaurant oseine ce allother oroughs rofessional 2 138 ‘Services 1 N Montaron Private Schools 12% w 60% Nr exave) Media otice commercial 2% Office Space 19% + Total off
Slide 30: Reconciliation of GAAP and Non-GAAP Measures
Reconciliation of GAAP and Non-GAAP Measures eter uae En (ie towaney EET gon en 3 2T Ee T= Pere teterrn reo Nett ava Common ctor s vse § 5005 § vse 6 v0 8 0908 Hetteene z 5 aA com Tao ma Tas Average sce ay 8 remo 8 roman § taaan § swear § saonaes tess Avge teresa ion sen fanas2a, a iasen ¥ econo t G
Slide 31: Reconciliation of GAAP and Non-GAAP Measures, Continued
Reconciliation of GAAP and Non-GAAP Measures, Con ued sof Fete Cures Enel ao Fes he Yess Ende December 3 (incr Tee in T2008 Oe 3,23 Sop UW Woe aaa tore 70 iene Mesa Tow Nnteest experacs Sse s7as § © sree $ sgran $ Mdazes § szzze $ rZIOO S lO9DIT $ 125380 § TansHe ‘Ameria en ore Depost tangles er Foe
Slide 32: Reconciliation of GAAP and Non-GAAP Measures, Continued
Reconciliation of GAAP and Non-GAAP Measures, Continued ofr Forte Quarters Ene 1 fr Fr the Vers Ended December 3, (Ss in hqusands, ee pr share dt) aT Wr 31,7024 ee 3.2023 STO TOS 2020, ETT 2022 a7 Book Valu Par Sharer Seka equity S vue § 1z16eO $ 1286S TaEBIS —§ TEI § ISTO ALB s raTaTEI $1216.60 Les
Slide 33: Reconciliation of GAAP and Non-GAAP Measures, Continued
| Reconciliation of GAAP and Non-GAAP Measures, Continued hectare teonssennt __ ve ss est vers tne ocan Sesion ne nes ar ee = Tan Fae se ee as [a 8 woes we § moos mans mms ams as un eae Tas aaa
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