Connectone Bancorp, Inc. · NASDAQ:CNOB

Connectone Bancorp — Piper Jaffray Financial Institutions Conference 2016

33 slides from Connectone Bancorp's conference presentation, May 5, 2016

  1. Slide 1: Piper Jaffray Financial Institutions Conference

    a & ConnectOne Bancorp, Inc. Piper Jaffray Financial Institutions Conference May 4-6, 2016 Orlando, FL

  2. Slide 2: Forward-Looking Statements

    Forward-Looking Statements ject fi statements about our expectations, beliefs, plans, predictions, forecasts, “should,” ill,” “estimate,” “plans,” “projects, continuing,’ Lieves,” “can,” “could,” “may,” “predicts,” “potential, “expects,” “intends” and similar words or phrases. Report on Form 10-k, I

  3. Slide 3: Approximately $4.1 billion in total assets

    ++ Approximately $4.1 billion in total assets, total deposits = * 21 locations across Manhattan, Bergen Essex, Hudson, Mercer, Monmouth, Morris and Union counties Jer: based * gically pI metro area “ Tactical expansion strategy n oe ** Retail locations serve as “business hubs” q ly P common share; a

  4. Slide 4: $4 Billion

    = $4 Billion , JANUARY 2016, JUNE 2015 MARCH 2014 _ FEBRUARY 2013 OCTOBER 2009 105 ANUARY 2 ; JULY 2015 JULY 2014 eaeaeaotome ieee cS Eman FEBRUARY 2013 OCTOBER 2006 & ConnectOne Bancorp

  5. Slide 5: Performance Trends: Core Diluted EPS

    Performance nds Core Diluted EPS* $0.40 $0.35 $0.30 $0.29 $0.25 $0.20 — = = = — = Q32014 = «Q42014 «Ss Q12015, 22015 = 32015 a4 2015 Qi 2016 & ConnectOne

  6. Slide 6: Tangible Book Value per Share

    ere Baar T Sh per Share $12.00 wee $11.00 $10.78 $10.51 $10.02 $10.26 $10.00 4987 $9.86 $9.40 $9.00 $8.00 $7.00 $6.00 9/30/2014 12/31/2014 3/31/2015 6/30/2015 9/30/2015 12/31/2015 3/31/2016 See appendix for a reconciliation of GAAP and non-GAAP measures. ————S & ConnectOne

  7. Slide 7: Performance Trends: Return on Average Tangible Assets

    Performance Trends ( Return on Average Tangible Assets* 1.60% sais 20h 1.26% as 1.20% : 1.20% 3 a7 1.20% ze 1.16 113% 1.09% ie 1.03% 0.80% 0.40% Qa 2014 Q1.2015 Q2 2015 Q3 2015 Q4 2015 Qi 2016 Core GAAP ™ ™™ ™™ Peer Median») it if nd $7, recent 5 quarters of reported results. Data sourced from SNL F

  8. Slide 8: Performance Trends: Return on Average Tangible Common Equity

    Perform nce Trends ( Return on Average Tangible Common Equity* 16.00% 14.56% 14.11% 13.99% 14.00% 43.4795 13.69% TERE 13.47% 15:58% a 03% 12.07% 12.00% 11.28% 10.00% 8.00% — —_—— — = = Q4 2014 Qi 2015 Q2 2015 Q3 2015 Q4 201! Q1 2016 Core GAAP = = = Peer Median» if nd $7, recent 5 quarters of reporte

  9. Slide 9: Performance Trends: Operating Efficiency Ratio

    Perform Operating Efficiency Ratio* nce Trends ( 95.0% 85.0% infrastructure to support our growth 75.0% 65.0% ——— ee eee ee ee ee ee ee ee 55.0% 45.0% 43.5% 0% 41.8% 41.8% 4 41.6% cs 45.0% ey 41.5% % 35.0% 25.0% 93 2014 42014 Qi. 2015 Q2 2015 Q3 2015 Q4 2015 Q12016 — — — Peer Median» Median reflects

  10. Slide 10: Capital Strength

    pi 1 Strength At March 31, 2016 12.00% 10.00% 8.00% 6.00% 4.00% 2.00% 0.00% 9.83% 8.66% Leverage Ratio Preferred Stock 11.36% 11.20% 10.45% 10.45% 9.06% 9.20% ——-—: CET 1 Ratio Tier 1 Ratio Risk Based Capital tio Bancorp MBank ===== Well Capitalized & ConnectOne Bancorp

  11. Slide 11: Dividend and organic growth highlights

    ° ivi quarter, 1.8% yield “> We are an "organic’ is i i and TBV “ ROATE of 13%+: while —T & ConnectOne Bancorp

  12. Slide 12: Loan Portfolio as of 3/31/16: $3.3 Billion

    As of 3/31/16- $3.3 Billion Residential and Consumer 7% C&l 19% > Construction 12% CRE-Owner Occupied 7% CRE-Multifamily 29% E-Non-Owner ‘Gea 26% = & ConnectOne

  13. Slide 13: Loan Growth CAGR 22%

    CAGR 22% $3,264 apes $3,099 $2,641 $2,765 $2,427 $2,539 9/30/2014 12/31/2014 3/31/2015 6/30/2015 9/30/2015 12/31/2015 3/31/2016 & ConnectOne

  14. Slide 14: Loan Originations, Paydowns and Origination Rate

    $450 4.25% 3.97% 3.97% _ 4.00% $350 3.75% $300 $250 $233 3.50% $203 $200 $190 $188 ‘g $164 gi65 325% $150 $146 $124 411 $102 3.00% $100 $6 se ss se $50 2.75% s _ -_ 2.50% 3/31/2015 6/30/2015 9/30/2015 12/31/2015 3/31/2016 EaaGross Loan Originations =iLoan Paydowns L=iNetGrowth ~®-Average Origination

  15. Slide 15: Commitment to Solid Credit

    mitment to Solid Cred ¢ Disciplined LTV and DSC standards ei er. * We stick to what we do best ® Hak ity di quality Novrel * Stay away from riskier lending, e.g., indirect auto. i iti leasing SBA lending or anything “sub-prime” ° % Multi-faceted stress testing . : ° ° z & ConnectOne Bancorp

  16. Slide 16: Asset Quality: NPA and Net Charge-off Ratios

    0.58% 0.57% 0.44% , 0.37% 0.37% pang 0.22% " 0.07% 0.06% 3% 10.01% -% 0.02% -% 9/30/2014 12/31/2014 3/31/2015 6/30/2015 9/30/2015 12/31/2015 3/31/2016 HINPA Ratio tu Net C/O Ratio = me me Peer Median 1) Median reflects the most & ConnectOne Bancorp

  17. Slide 17: CRE and Construction Concentrations

    646% 450% 2010 2011 2012 2013 2014 CRE ts Construction 2015 11+ years & ConnectOne Bancorp

  18. Slide 18: Shy away from "one-off" transactions

    Shy away from “one-off” transactions 75% LTV and a 1.25x DSCR based on our Our visit our properties Our p & ConnectOne Bancorp

  19. Slide 19: C&I Lending

    C&I Lending & C&l including manufacturing, revenues. i i 9 $ Provide i i i ing, but not limited to, working capital, te Jersey = & ConnectOne Bancorp

  20. Slide 20: Taxi Medallion Exposure

    ly Exposure, net of reserve: 2016 % Just 2.98Y 44% of Bank’s Tier 1 capital > $86.4mm & original terms * $1.4 million past due 30-59 days * $1.9 million in nonaccrual p p porti en in a highly ik we believe, “van continue to pursue our & ConnectOne Bancorp

  21. Slide 21: Deposits as of 3/31/16: $2.9 Billion

    As of 3/31/16- $2.9 Billion Brokered Noninterest 12% Demand 21% Listing 7% Reciprocal 9 10% Interest Transaction 37% = = & ConnectOne

  22. Slide 22: Deposit Growth CAGR 21%

    CAGR 21% $600 $560 $550 $510 $500 $482 $482 $450 $400 $350 gum 12/31/2014 3/31/2015 6/30/2015 9/30/2015 12/31/2015 3/31/2016 z & ConnectOne Bancorp

  23. Slide 23: Deposit and liquidity philosophy

    ae istori posit rati 100%. Our interest rate risk a ur h network, public fund: 5 zi e } the FHLB, brokered, and listing service + Our philosop iquidity, interest rate risk growth, enhance return. ‘imi: i & ConnectOne Bancorp

  24. Slide 24: Three Ways To Create Value

    hree Ways To V bad . Organic Growth Effici i i i leverage * Untapped sources of revenue % Skilled acquiror Franchise Value * Valuable geographic footprint Loyal and profitable client base value & ConnectOne Bancorp

  25. Slide 25: Discount to peers on forward P/E multiple

    discount to peers on forward P/E multi = = & ConnectOne B:

  26. Slide 26: , Inc.

    & ConnectOne Bancorp, Inc. & ConnectOne Bancorp

  27. Slide 27: Appendix

    & ConnectOne Bancorp, Inc. APPENDIX & ConnectOne Bancorp

  28. Slide 28: Reconciliation of GAAP and non-GAAP measures

    Appendix Reconciliation of GAAP and non-GAAP measures ‘Three Months Ended G@ollars is ase shat) Sept. 30, Tune 30, 3, Reconciliation Earnings to Operating Earnings 15 2015 Net income (G: AP 10 9568 ye SOSA S«10379 Less: rofemed dividends 2 28 28 Net income available to common stockholders (GAAP) 104

  29. Slide 29: Reconciliation of GAAP and non-GAAP measures (cont.)

    Appendix Reconciliation of GAAP and non-GAAP measures (cont,) “Three Months Ended (@ollars in thousands, except share data) Mar. 31, Dec. 31, Sept.30, Tune 30, Mar. 31, 2016 2015, 2015 2015 2015 ‘Return on Assets Measures Cote earnings available to common stockholders (non-GAAP) S$ 10905 S$ 10874 S$

  30. Slide 30: Reconciliation of GAAP and non-GAAP measures (cont.)

    Appendix JAAP measures (cont ‘Three Months Ended Gollars in thousands, except share data) Mar. 31, Dee. 31, Sept. 30, ‘June 30, ‘Mar. 31, 2016 2018 2018 2015, 2015 ‘Hiiciency Measures, Total noninterest expensé S$ 1433 $ BSD $ 13301 $8 1497 $ 12681 Partial settlements, Siren obligation (103) (106) 6

  31. Slide 31: Reconciliation of GAAP and non-GAAP measures (cont.)

    Appendix jation of GAAP and non-GAAP measures (cont) Asof cer in thousands, except share data) Whar. 31, Dec. 31, Sept 30, “Tune 30, Nir 31, 016 2018 2018 2018, 2018 Capital Ratios and Book Value per Share ‘Common equity $ 459896 $ 452732 $ 444944 Less: intangible assets as ie nn eb 150,034) 150,252

  32. Slide 32: Appendix: asset quality tables

    Appendix three Months Baded Dee. 3, Sept. 30, Tun. 30, Mi 3H, 2015 2015 2015 2015 s wos SID SM o @ 4 331 @ 7S 16S mS 3S 32 sa otienee onlin 0.05% 0.00% 0.02% 0.00% 001% Asset Oualiy ‘Nonacerual loan S 14% S$ 20737 8 288s S$ IntHs sass Otero 1698 2.519 244 164 S70 nonperforing assets Eis “S73286 12 T

  33. Slide 33: Reconciliation of GAAP and non-GAAP measures (cont.)

    pen Reconciliation of GAAP and non-GAAP measures (cont,) & ConnectOne Bancorp

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