Connectone Bancorp, Inc. · NASDAQ:CNOB
Connectone Bancorp — Investor Presentation (February 2023)
31 slides from Connectone Bancorp's investor presentation, Feb 16, 2023
Slide 1: Form 8-K Current Report
UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 _________________ FORM 8-K _________________ CURRENT REPORT Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 Date of Report (Date of earliest event reported): February 16, 2023 _____________________________
Slide 2: Item 8.01 Other Events; Item 9.01 Exhibits
Item 8.01. Other Events. Exhibit 99.1: Presentation, February 2023, Investor Presentation Item 9.01. Financial Statements and Exhibits. Exhibits. The following is filed as an Exhibit to this Current Report on Form 8-K: 99.1 Power Point Presentation, February 2023, Investor Presentation 104 Cover Pag
Slide 3: Signature
SIGNATURE Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized. ConnectOne Bancorp, Inc. Date: February 16, 2023 By: /s/ William S. Burns William S. Burns Senior Executiv
Slide 4: Exhibit 99.1 ConnectOne Bancorp, Inc.
Exhibit 99.1 & ConnectOne Bancorp, Inc. CNOB Investor Presentation February 2023
Slide 5: About ConnectOne Bancorp, Inc.
About ConnectOne Bancorp, Inc. ConnectOne Bancorp, Inc, is a modern financial services company with $9.6 billion in assets. It operates through its bank subsidiary, ConnectOne Bank, and its fintech subsidiary, BoeFly. ConnectOne Bank is a high-performing commercial bank offering a full suite of prod
Slide 6: High Operating Performance
High Operating Performance 2022 Q4 Financial Highlights Note. See Appendix " PPNR represents pre-tax net income excluding the impact of merger and restructuring charges and provision for loan iosses. ‘See eppendix for a reconcilistion of GAAP and non-GAAP meazures > As reported by S&P Global intelli
Slide 7: Strong Core Net Interest Margin
Strong Core Net Interest Margin Yields and Costs 4.68% z 4.80% ann 4.80% a alle ae 487% 4A 4AT™ 4.20% 455% 1.62% — — on 1.08% 0.94% 0.58% 2o1ey" 2o19v" 2020v' 202" 20227! —®Loans Interest-eaming Assets = —®=Cost of Funds Net Interest Margin ” 3.66% 3.69% 3.40% 3.46% \ 3.35% e Pa eo. « 3.35% 3.28% °
Slide 8: Robust Profitability and Capital Generation
Robust Profitability and Capital Generation Return on Average Assets Tangible Book Value per Share Growth 1.69% $2171 0.82% 2018Y 20197 2020Y 2021¥ 2022¥ 2018Y 2019Y 2020 2021¥ 2022¥ <= CNOB <@= Peers(1) Pesencrss nent Source: Company Filings, SBP Gtobat Market intefigence Note: Please refer to Mon-
Slide 9: Non-Interest Income
Non-Interest Income Diversification of Revenue BoeFly * Strong fee income momentum * Growing opportunities to expand product set Gains on Sale SBA Division + Commercial Residential + Interchange fees ~ * Overdraft fees Maintenance fees Minimal dependency on income streams subject to regulatory press
Slide 10: Diversified and Granular Loan Portfolio
Diversified and Granular Loan Portfolio ($ in millions) Select Loan Portfol Segment sm of Total ecember 31, 2022 Underwriting Standards Construction $574 Multifamily $2,640 Non-owner Occupied CRE $2,301 Business Loans $2,332 Other (¢.9. 1-4 Family and Consumer): $265 ‘Total Loans: $8,112 Source Comp
Slide 11: Loan Portfolio Detail
Loan Portfolio Detail Type [Balance | Percentage Type | Balance [Percentage| (S$ in millions) CRE - Retail S$ 681 8%] JOOC- Warehouse /industnal $ 248 3% CRE - Other / Misc 633 8%] JOOC - Retai! 206 3% Residential/ CRE - Office 385 5%] JOOC- Other 191 2% Con ICRE - Warehouse / JOOC - Office / Wareho
Slide 12: High Quality Asset Composition and Reserves
High Quality Asset Composition and Reserves Loan Loss Reserves / Loans Receivable Nonperforming Assets / Total Assets 0.95% 0.80% 2018Y 2019¥ 2018Y 2019¥ 0.82% 1.27% 1.15% 1.12% 0.77% 0.75% | | | 0. 2020¥ 2021Y 2022v 2020¥ mw NPAs Excl, Taxi / Total Assets ACL By Segment Type as of December 31, 2022
Slide 13: 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
Slide 14: Deposit Franchise
Deposit Franchise Average Total Deposits Deposit Composition as of 12/31/2022 see CAGR 15% $7,000 Demand Noninterest- bearing $5,000 Time 20% 33% $4,000 $3,000 é $2,000 —_ $1,000 - $- yr YearEnded YearEnded YearEnded YearEnded Year Ended 2018 2019 2020 2021 2022 Average Demand Noninterest-bearing De
Slide 15: Organic Growth
Organic Growth Opportunities to expand as a result of post-pandemic trends @ Densely populated, lucrative markets @ Strong demand for personalized service among small to mid-sized business owners @ Our target market is largely dominated by the largest institutions in the country, leaving tremendous
Slide 16: 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 @ Digital investments coupled with ability to attract top talent allows for dynamic expansion ‘Now in West Palm Beach, FL w Banking
Slide 17: Enhancing Our Deposit Franchise
Enhancing Our Deposit Franchise Tech Investments ntl an ortunities to rage modern tech to s and our current in ranch and online dep are enhar su origination soft client expe our dy ws us to launch a ing an sit-heavy busine: Expanded Business Lines Continued momentum from our C&I team i: elerating va
Slide 18: Disciplined Expansion Through M&A
Disciplined Expansion Through M&A with Demonstrated Expertise as a Skilled Acquiror ® Completed transaction on January 2, 2019 and integrated systems Jess than 30 days after closing = Value-add transaction; many benefits realized — Loan-to-deposit ratio improved — CRE concentration reduced — Net int
Slide 19: Active M&A Environment
Active M&A Environment Opportunities in Market Disruption @ iTalent + We've experienced increased success in attracting revenue generating talent. * Due to disruption, individuals are seeking out ConnectOne. HCN Business Lines * The opportunity to pick up clients who have been displaced by transacti
Slide 20: Acceleration of Growth: Tech-Forward Leadership
Acceleration of Growth: Tech-Forward Leadership Building a Leading Commercial Bank, Powered by Best-in-Class Technology Building the Future of Banking @ Investments in technology support the growth of ConnectOne's high performance, low efficiency model ® Continued investments to enhance the bank's o
Slide 21: Acceleration of Growth: BoeFly
Acceleration of Growth: Tech-Forward Leadership Capitalizing on Niche Specific Opportunities BoeFly Today's BoeFly Ecosystem With both patented and proprietary technology, BoeFly helps connect small to mid-sized businesses with professional loan brokers and lenders across the United States. ™ BoeFly
Slide 22: Best-In-Class Efficiency
Best-In-Class Efficiency One of the Best Efficiency Ratios in the Industry Locations utilize technology to serve as “business hubs” $19MM supporting clients beyond patented geographic footprint Efficiency ratio includes investments 2o1gy = 2019 2020Y = 2021Y = (2022 in infrastructure to propel the e
Slide 23: A People First Culture with Recognized Success
A People First Culture with Recognized Success NJBIZ Best Places We are proud to be WELL Health-Safety Rated! to Work pn 2022 Top Bank 1 with assets $58 to $S08 Bank Director & ConnectOneBank
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: ConnectOne Bancorp, Inc.
as To = ® 2. 2. < PEP DD DS SSS HH ys & ConnectOne Bancorp, Inc
Slide 27: Loan Growth Metrics (ex. PPP)
Loan Growth Metrics (ex. ppp) ——CI% $2,500 ———— 4.64% 4.67% ——_ $2,000 band 4.56% 4.50% _—* — L = “= a 7% 5.20% $1,500 ™ m =o — 4.68% 3.83% 3.90% 4.02% $924 $1,038 $1,000 $708 $714 roo $408 $491 $394 va $407; $511 $500 $300 $223 $191 $328 = $311 9999 ¢- = is — bs oe 29 2021 30.2021 4Q 2021 19.2022 2
Slide 28: Reconciliation of GAAP and Non-GAAP Measures
Reconciliation of GAAP and Non-GAAP Measures Sra a =e = SS Net Income Avalatte to Common Stockholders: $ no 8 2A & mse § mE $ ci ca) Amorszatice of Core Deposit imangtbes Afr Tax 76 ris ESS 3 335 “Wetincore Aste fox tengo penne z ETEEEMED Ten 5 ETRE EDREEEED EE Avernge stockholeers equity. $ Liesses
Slide 29: Reconciliation of GAAP and Non-GAAP Measures, Continued
Reconciliation of GAAP and Non-GAAP Measures, Continued {8's in thousends) Efficiency Measures. Total Nocimerest Expenses $ M32 S Bus $ 3703 $ WW $F MAS $ 92BWB S$ 121001 $F 109011 $ 126,388 Amonization of Core Deposit Imengibles (403) (409) (434) {433 (627) (1.406) (2559) (1.981) $ (1,685) Merger E
Slide 30: Reconciliation of GAAP and Non-GAAP Measures, Continued
Reconciliation of GAAP and Non-GAAP Measures, Continued (3's in thousands, except per share data) ‘As of or For the Quarters Ended. As of or For the Vears Ended December 31 Dee. 31, 2008 Sep, 98, SORE hep 90, 2058 ther 31, 2078 ane ze = Ci] a Book Value Per Share; Stockholders equity $ 1ATA7H $ 114R
Slide 31: Reconciliation of GAAP and Non-GAAP Measures, Continued
Reconciliation of GAAP and Non-GAAP Measures, Continued (S's in thousends) As of of For the Years Ended December 31 2018 2019 2020 2021 2022 ‘NetLoan Charge-Off (Recoveries) Detail: Average Loans (Including Loans HekHorSale and Nonaccrual Loans) S$ 4330874 S$ 5049458 $ 6198753 $ 6419610 $ 7,380,584
ConnectOne Bancorp — Investor Presentation (February 2023) on 6ix