Connectone Bancorp, Inc. · NASDAQ:CNOB

Connectone Bancorp — Investor Presentation (September 2021)

24 slides from Connectone Bancorp's investor presentation, Sep 8, 2021

  1. Slide 1: CNOB September 2021 Investor Presentation

    CNOB September 2021 Investor Presentation

  2. 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 $ 7.7 Billion in Total Assets 2 One of the most

  3. Slide 3: High Operating Performance: 2021 Q2 Financial Highlights

    High Operating Performance 3 2021 Q2 Financial Highlights 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 Intelligence 3. Ex

  4. Slide 4: Strong Core Net Interest Margin

    3.38% 3.45% 3.28% 3.35% 3.46% 3.56% 3.60% 3.40% 3.40% 3.40% 3.35% 3.09% 3.05% 2.99% 2016Y 2017Y 2018Y 2019Y 2020Y 1Q 21 2Q 21 CNOB Peers 4.43% 4.47% 4.68% 5.08% 4.80% 4.59% 4.58% 4.17% 4.29% 4.49% 4.87% 4.47% 4.23% 4.17% 0.84% 0.89% 1.29% 1.62% 1.08% 0.70% 0.61% 2016Y 2017Y 2018Y 2019Y 2020Y 1Q 21 2

  5. Slide 5: Robust Profitability and Capital Generation

    0.73% 0.93% 1.17% 1.22% 0.96% 1.78% 1.71% 0.90% 0.95% 1.07% 1.12% 0.82% 1.20% 1.20% 2016Y 2017Y 2018Y 2019Y 2020Y 1Q 21 2Q 21 CNOB Peers $11.96 $13.01 $14.42 $16.06 $17.49 $18.02 $18.76 2016Y 2017Y 2018Y 2019Y 2020Y 1Q 21 2Q 21 5 Robust Profitability and Capital Generation Source: Company Filings, S

  6. 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

  7. 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

  8. 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 , 38% Multifamily , 31% Business Loans , 26% Residential/ Consumer , 5% Type Balance Percentage Type Balance Percentage CRE - Other / Misc 474$ 8% OOC - Retail 149$ 2% CRE - Retail 469

  9. Slide 9: High Quality Asset Composition and Reserves

    0.74% 0.76% 0.77% 0.75% 1.27% 1.28% 1.23% 2016Y 2017Y 2018Y 2019Y 2020Y Q1 21 Q2 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 June 30, 2021 1.57% 1.29% 0.95% 0.80% 0

  10. 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

  11. Slide 11: COVID-19 CARES Act Deferrals

    11 ($ in millions) Source: Company Information and Company Designations  As of June 30, 2021 loan deferments represent under 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  95% of the June 30, 2021 loa

  12. Slide 12: Deposit Franchise

    Deposit Franchise 12 Deposit Composition as of 6/30/2021 Total Deposits $6.2 billion 2021 2Q Cost of Total Deposits 0.42% Demand Noninterest - bearing 24% Nonmaturity interest - bearing 55% Time 21% $- $1,000 $2,000 $3,000 $4,000 $5,000 $6,000 $7,000 $8,000 Year Ended 2016 Year Ended 2017 Year Ended

  13. 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,

  14. Slide 14: 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

  15. Slide 15: Active M&A Environment: Opportunities in Market Disruption

    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

  16. 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

  17. Slide 17: One of the Best Efficiency Ratios in the Industry

    41.4% 40.1% 41.4% 41.9% 40.9% 39.1% 59.0% 55.8% 54.8% 54.9% 56.4% 55.5% 1.35% 1.34% 1.32% 1.36% 1.39% 1.38% 2.08% 2.10% 2.10% 2.09% 1.92% 1.88% 2016Y 2017Y 2018Y 2019Y 2020Y YTD 2Q 21 CNOB Efficiency Ratio Peers Efficiency Ratio CNOB Operating NIE / Avg. Assets Peers Operating NIE / Avg. Assets One

  18. 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

  19. Slide 19: © ConnectOne Bancorp, In

    © ConnectOne Bancorp, In

  20. Slide 20: Appendix

    Appendix POPHHHOHHHHS Sw

  21. Slide 21: Reconciliation of GAAP and Non-GAAP Measures, Continued

    Reconciliation of GAAP and Non - GAAP Measures, Continued 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 ma

  22. Slide 22: Efficiency Measures Reconciliation

    As of or For the ($'s in thousands) As of or For the Quarters Ended, Six Months Ended, As of or For the Years Ended December 31, Jun. 30, 2021 Mar. 31, 2021 Jun. 30, 2020 Jun. 30, 2021 2016 2017 2018 2019 2020 Efficiency Measures Total Noninterest Expenses 26,259$ 26,485$ 33,063$ 52,744$ 58,507$ 78,

  23. Slide 23: Reconciliation of GAAP and Non-GAAP Measures

    ($'s in thousands, except per share data) As of or For the Quarters Ended, As of or For the Years Ended December 31, Jun. 30, 2021 Mar. 31, 2021 Jun. 30, 2020 2016 2017 2018 2019 2020 Book Value Per Share: Common Equity 964,960$ 935,637$ 867,741$ 531,032$ 565,437$ 613,927$ 731,190$ 915,310$ Less: In

  24. Slide 24: Reconciliation of GAAP and Non-GAAP Measures, Continued

    Reconciliation of GAAP and Non - GAAP Measures, Continued 24 Source: Company Filings ($'s in thousands) As of or For the Quarters Ended, As of or For the Years Ended December 31, Jun. 30, 2021 Mar. 31, 2021 2016 2017 2018 2019 2020 Net Loan Charge-Off (Recoveries) Detail: Average Loans (Including Lo

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