Connectone Bancorp, Inc. · NASDAQ:CNOB

Connectone Bancorp — Raymond James U.S. Bank Conference 2015

33 slides from Connectone Bancorp's conference presentation, Sep 9, 2015

  1. Slide 1: Raymond James U.S. Bank Conference

    ee & ConnectOne Bancorp, Inc. Raymond James U.S. Bank Conference September 9, 2015 Chicago, IL

  2. Slide 2: Forward-Looking Statements

    Forward-Looking Statements ny statements about our ati beliefs, pl: redicti forecast: but not al anticipate’ “can,” “could,” “may.” “predicts.” “potential,” “should,” “will,” “estimate,” “plans,” “projects,” “continuing,” “ongoing,” vee’ ” “intends” and. similar words or phrases Risk Factors” in our

  3. Slide 3: Approximately $3.7 billion in total assets

    «* Approximately $3.7 billion in total assets, total deposits j= York City t sy aa i Bergen Essex, Hudson, Mercer, Monmouth, Morris and Union counties One of the largest New Jersey-based banking institutions with increased scale, ‘* Strategically placed offices throughout the NJ/NY metro area * Tact

  4. Slide 4: % i gely i y instituti i leaving

    % i gely i y instituti i leaving ’ Already = & ConnectOne Bancorp

  5. Slide 5: Sense of Urgency culture

    Sense of Urgency culture is a rena anger for clients peed of execution in underwriting and closing rocess Ability to get answers to clients quickly Connected a + re i eee works for the Com| Sel morale areata jinators want to be ae rola ce e that has a reputation for growth Yalu! Client-First Experie

  6. Slide 6: Performance Trends: Core Diluted EPS

    Performance Trends Core Diluted EPS* $0.29 $0.27 Q2 201 03 2014 Pre-Merger $0.32 Q4 2014 26% Increase from prior year quarter $0.33 $0.34 Qi 2015 Q2 2015 & ConnectOne Bancorp

  7. Slide 7: Performance Trends: Tangible Book Value per Share

    Performance Trends (cont.) Tangible Book Value per Share 10% Increase from prior year 9.1! 0 7 86 10.02 $9.15 $9.4 $9.5 $9. $: Pre-Merger 03 2014 Qi 2015 Q2 2015 eel = & ConnectOne Bancorp

  8. Slide 8: Performance Trends: Total Loans

    Performance Trends (cont.) Total Loans Solid Organic Growth ($ Millions) Se, $2,765 $2,641 $2,427 $2,539 $1,006 2 2014 03 2014 4 2014 a1 2015 Q2 2015 Pre-Merger = & ConnectOne Bancorp

  9. Slide 9: Performance Trends: Total Deposits

    Performance Trends (cont.) Total Deposits ($ Millions) $2,469 $2,476 $2,496 $2,569 ; Q22 Q3 2014 Q4 2014 Qi 2015 Q2 2015 Pret ever = & ConnectOne Bancorp

  10. Slide 10: Performance Trends: Noninterest-bearing Deposits

    Performance Trends (cont.) Honinisres! ene Deposits Focus on core Million: relationship deposits $553 $a74 $493 $80 _ Q2 Q3 2014 a4 2014 Q1 2015 Q2 2015 Pre-Merger 2 & ConnectOne Bancorp

  11. Slide 11: Performance Trends: Net Interest Margin

    Performance nds (con Net Interest Margin* 3.50% 3.46% 3.45% 3.43% 3.42% 3.40% 3.35% ae —_— —_— —_— —_— 3.30% 3.29% 3.29% _ U U 3.20% Q2 2014 Q3 2014 Q4 2014 Qi 2015 Q2 2015 Pre-Merger — = —Peer Median» Median reflects the most = & ConnectOne Bancorp

  12. Slide 12: Operating Efficiency Ratio

    Operating Efficiency Ratio* Includes investments in 95.0% =o and infrastructure to 85.0% port our grow! 75.0% 65.0% —— eee 55.0% 44.8% 45.0% 42.0% 42.0% 45.0% 38.4% 35.0% 25.0% Q2 2014 Q3 2014 Q4 2014 Qi 2015 Q2 2015 Pre-Merger — = — Peer Median» Median reflects the most & ConnectOne Bancorp

  13. Slide 13: Core Return on Average Tangible Assets

    Performance Trends (cont.) Core Return on Average Tangible Assets* 1.60% 1.20% 1.22% 1.20% 1.20% 1.10% 1.07% <i —_— _ 0.80% 0.40% 0.00% Q3 2014 Q4 2014 Qi 2015 Q2 2015 beeen — = —Peer Median ® Median reflects the most & ConnectOne Bancorp

  14. Slide 14: Core Return on Average Tangible Common Equity

    Performance Trends (cont.) Core Return on Average Tangible Common Equity* 16.00% 13.47% 13.75% 13.47% 12.04% 12.15% 12.00% 8.00% 4.00% 0.00% 03 2014 Q4.2014 Qi 2015 Q2 2015 oe war — — —Peer Median» Median reflects the most = & ConnectOne Bancorp

  15. Slide 15: Tangible Common Equity Ratio

    11.1% 10.9% | 8.7%) | 8.6%| Q3 2014 04 2014 Tangible Common Equity Ratio Reflects issuance of $50mm in Subordinated Debt mS | 8.8% | 8.6% Q2 2015 Mi Risk-Based Total Capital Ratio & ConnectOne Bancorp

  16. Slide 16: Interest rate risk management

    We manage our i ° Our rate shocks higher interest & ConnectOne Bancorp

  17. Slide 17: Credit Quality

    edit Quality * Disciplined LTV and DSC standards . nae “> We stick to what we do best 8 Hi Ms, af ° indirect auto, 2nd lien positions, leasing, ° iski ing, e.g. SBA lending or anything “sub-prime” . ‘+ Multi-faceted stress testing . ° z party 's of the portfoli loan workout specialists =F & ConnectO

  18. Slide 18: Non-Performing Assets & Charge-Offs

    edit Quality (cont.) Non-Performing Assets & Charge-Offs 1.40% 1.20% 1.00% 0.80% 0.60% 0.40% 0.20% 0.00% 0.26% Pre-Merger 0.44% 0.37% 0.37% 0.22% 0.07% 0.03% . 0.01% -% Q3 2014 Q4 2014 Qt 2015 Q2 2015 MNPARatio NetC/ORatio = == =m Peer Median” Median reflects the most & ConnectOne Bancorp

  19. Slide 19: Total Loans - $2.8 Billion

    Total Loans- $2.8 Billion Residential and Consumer 8% C&l 20% Construction 8% N CRE-Owner Occupied 9% CRE-Multifamily \ 28% CRE-Non-Owner Occupied 27% = <& ConnectOne B

  20. Slide 20: Commercial real estate lending

    Southern New Jersey. Jersey, 10% NYC and “ Average loan $1.8 3.75%. to 35 Shy away from “one-off” transactions. 75% LTV and a & ConnectOne Bancorp

  21. Slide 21: C&I Lending

    C&I Lending Total C&I Lending- $569 Million Taxi 3.7% Other C&l 16.3% Si & ConnectOne Bancorp

  22. Slide 22: C&I lending details

    including manufacturing, service-related and distributers. revenues. i i rang 1$1 Provi i ions i ing, but not limited to, working capital, Jersey F wing NYC office located at 55" and Madison. & ConnectOne Bancorp

  23. Slide 23: Taxi Medallion Portfolio

    lion Portfolio p medallion owner: ’ of Bank’s tier 1 capita. Only NYC NYC medalli At present, 100% current. medallion p the it LTV of our 10%-95%. Hi d 1d 269 pp t ‘ 2016. Our y Highly developments. & ConnectOne Bancorp

  24. Slide 24: Deposit Composition

    mposition Total Deposits- $2.6 Billion Brokered 9% Noninterest Demand 22% Listing 4% Time 17% Reciprocal 10%

  25. Slide 25: Organic Growth and Franchise Value

    & Organic Growth “> Effici i leverage “» Untapped sources of revenue “Skilled acquiror Franchise Value * Valuable geographic footprint “Loyal and profitable client base ly % i value & ConnectOne Bancorp

  26. Slide 26: Compelling Investment Opportunity

    ompelling Investment Opportunity lighly ctive franchis key NJ/NY metro market ‘Shares trading at a] ly 11.5x consensus 2016 EPS : = & ConnectOn:

  27. Slide 27: , Inc.

    & ConnectOne Bancorp, Inc. & ConnectOne Bancorp

  28. Slide 28: Appendix

    & ConnectOne Bancorp, Inc. APPENDIX & ConnectOne Bancorp

  29. Slide 29: Appendix: Reconciliation of GAAP and non-GAAP measures

    Appendix Reconciliation of GAAP and non-GAAP measures (dollars in thousands, except share data) Net income (GAAP) Less: preferred dividends Net gains on sales of securities Partial settlements of pension obligation ‘Amortization of intangible assets Three Months Ent June30,- March31, ‘Dec. 31, ‘Sept

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

    Appendix Recon ion of GAAP and non-GAAP measures (cont. (dollars in thousands, except share data) Return on Equity Mea: Core earnings able cori kills rage common equity Less: average intangible assets Average tangible comrron equity Return on avg. common equity (GAAP) Core return on avg. common equi

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

    Appendix Recon mn of GAAP and non-GAAP measures (cont. ‘Three Months Ended. (dollars in thousands, except share data) Tune30,—Mareh 31, ‘Dee. 31, Sep30, June30, en 2015, 2018 2014 2014 iat roninerest expense: $ 14974 $ 12631 $ 15,164 $ 25,400 $ 6744 Partial settlements of pension obligation (243) (6

  32. Slide 32: Appendix: Reconciliation of GAAP and non-GAAP measures (cont.)

    Appendix Reconciliation of GAAP and non-GAAP measures (cont. As of (dollars in thousands, except share data) June 30, March 34 Dec. 31, Sept. 30, June 30, 2015 2015 201 2016 2014 Capital Ratios and Book Value per Share smmon equity $ 452,732 § 444.944 § 434969 § 429, $ 167,028 : intangible assets (1

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

    Appendix Reconciliation of GAAP and non-GAAP measures (cont. As of (dollars in thousands, except share data) June 30, March31, Dec. 31, Sept. 30, June 30, 2015 2015 2014 2014 2014 Asset Quality Nonaccrual loans Other real estate owned Total nonperformring assets Performing troubled debt restructurin

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