Connectone Bancorp, Inc. · NASDAQ:CNOB
Connectone Bancorp — Investor Presentation (February 2023)
28 slides from Connectone Bancorp's investor presentation, Feb 16, 2023
Slide 1: ConnectOne Bancorp, Inc. Investor Presentation February 2023
& ConnectOne Bancorp, Inc. CNOB Investor Presentation February 2023
Slide 2: About ConnectOne Bancorp, Inc.
About ConnectOne Bancorp, Inc. ConnectOne Bancorp, nc. is a modern financial services compary with $9.6 bilion in assets. t operates through its bank subsidiary, ConnectOne Bank, and ts fintech subsidiary, BooFly. ConnectOne Bank isa high-performing commercial bank offering 2 full suite of products
Slide 3: High Operating Performance
High Operating Performance 2022 04 Financial Highlights 9.0% Tangible Common Equity Ratio 3.48% Net Interest Margin 39.9% Efficiency Ratio pret enact of merger ar ‘Se appara fora econistion ef GAAP and on GaaP resure® 2s ported by SUP Gbal neligece Exclu ans sere ts macaions 0.23% Non-performing ‘As
Slide 4: Strong Core Net Interest Margin
| Strong Core Net Interest Margin ields and Costs ‘tues 5.06% ‘io son 4.20% 407% 440% are aa 4558 1% 1298 aaa — 04% ory" 2ory" 2oz0v 2ozw? zz? e-Lome —-Interest-caming Assets —e=Cost of Funds Not Interest Margin 3.66% 3.40% \ 3.35% 3.28% aa88 : a 3.09% 3.02% 2orey? 20197 2020¥ 2021 2022" © Peers? ~e
Slide 5: Robust Profitability and Capital Generation
Robust Profitability and Capital Generation Return on Average Assets ‘Tangible Book Value per Share Growth aor aovov—=smozoy moa a0aay or ae ae a 7 = cH08 me Peet) Bere fers. ‘yon can gs SUP Gta gece pared ay sth ina kaetiedgnce ers ela BAL B,C, TG RN FF FUG NO, LB OF, FS i SASR US, an A
Slide 6: 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 pre
Slide 7: Diversified and Granular Loan Portfolio
Diversified and Granular Loan Portfolio (Sin millions) Select Loan Portfolio Details as of December 31, 2022 ‘sot Segment sM__Total Standards = Rejciettry cpa bine wegen Construction $574 7% a 1D atom retary ace $2,640 33% Non-owner Occupied CRE $2,301 28% Business Loans $2332 29% a Pan puree ison o
Slide 8: Loan Portfolio Detail
Loan Portfolio Detail 7 = [anones [race] ($ in millions) lene - Retail sot ax] fooc- warehouse /industnal § 248, asf Jere -omer/ wise a af fooc- Reson wm Residential/ cre -oFrce as xf fooc- omer m asl lore - warenouse 7 ooc- ore / Warehouse ar Consumer, 3% lindustiat a anf Jims Use rey a exe- mised
Slide 9: High Quality Asset Composition and Reserves
High Quality Asset Composition and Reserves Loan Loss Reserves / Loans Receivable Nonperforming Assets / Total Assets 0.95% mm Osa ss ons on 076% ore 75% I 0.46% aa a a zoey 2019 2020Y ony, 20227 ‘=NPAs Exc, Taxl/ Total Assots © NPAs/Total Assets ‘ACL By Segment Type as of December 31, 2022 Net Char
Slide 10: Strong Underwriting Culture
Strong Underwriting Culture Comprehensive Underwr Disciplined LTV and DSC standards Multi-Faceted Stress Testing © Loan origination process supported by specialized teams of credit analysts m= Every loan tested during underwriting process 1 igh quaty det commercial nding platform wth tle cre rane on
Slide 11: Deposit Franchise
Deposit Franchise Average Total Deposits Deposit Composition as of 12/31/2022 $9,000 CAGR 15% $7,000 Demand Noninterest- om bearing $5000 Time 20% 4000 at s3000 é s2000 = $1000 2 * - Year Ended Year Ended Year Ended Year Ended Year Ended 2018 2019 2020, 2021 ‘2022 Average Demand Noninterest-bearing
Slide 12: Organic Growth
Organic Growth Opportunities to expand as a result of post-pandemic trends I Densely populated, lucrative markets Il Strong demand for personalized service among small to mid-sized business owners I Our target market is largely dominated by the largest institutions in the country, leaving tremendous
Slide 13: 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 igital investments coupled with ability to attract top talent allows for dynamic expansion ‘Now i West Paim Beach, FL gw Banking Hu
Slide 14: Enhancing Our Deposit Franchise
Enhancing Our Deposit Franchise Tech Investments with Mantl and portunities 10 Nymbus allows us to laun: vertical on thei based technology, creating anew avenue to target deposit-hea Expanded Business Lines tinued momentum frm our lable ConnectOne is a destination for top talent, allowing us to attr
Slide 15: 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 in-Market Acqui jon of S18 = Completed transaction on ‘Commercial Bank on January 2,2020 January 2, 2079 and integrated systems, iess than 30 days after closing ‘a ‘Endidnote Scale and Fikire Growth Oppor
Slide 16: 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 c
Slide 17: Acceleration of Growth: Tech-Forward Leadership
| Acceleration of Growth: Tech-Forward Leadership Technology Building the Future of Banking = Investments in technology support the growth of igh performant = Conti hance the bank's onli i solution: processes and jh security and compliance measures ips wit id ide of the i solutions A built MANTL 3).
Slide 18: Acceleration of Growth: Tech-Forward Leadership
Acceleration of Growth: Tech-Forward Leadership Capitalizing on Niche Specific Opportunities BoeFly 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 operates as a separate,
Slide 19: Best-In-Class Efficiency
Best-In-Class Efficiency One of the Best Efficiency Ratios in the Industry Historical Operating Performance Locations utilize technology to serve as “business hubs” 548% San supporting clients beyond Sus geographic footprint nase COTE 093] a Eo g Efficiency ratio includes investments zoey = 20192020
Slide 20: A People First Culture with Recognized Success
| A People First Culture with Recognized Success Best Places We are proud to be to Work WELL Health-Safety Rated! $ ConnectOneBank
Slide 21: Strategy & Vision: CNOB: A Compelling Investment Opportunity
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 22: ConnectOne Bancorp, Inc.
& ConnectOne Bancorp, Inc.
Slide 23: Appendix
Appendix SPSS SSSSSHSH SPs & ConnectOne Bancorp, Ine.
Slide 24: Loan Growth Metrics (ex. ppp)
Loan Growth Metrics (ex. ppp) $2,500 “—— CH 464% 467s a sao SSE e asx * a “FIM San. 1.500 C — . esas am? 48% geas san 000 S708 5408 sold $294 — “i Sth 500 i 5200 Paes _ “= on = 531 g200 $- — ae nae ae ate 302022 492022 ‘eons LounFundoge Loan Pao mmm Growth Average Funding Coupon w—Averge Portal Vd C
Slide 25: Reconciliation of GAAP and Non-GAAP Measures
| Reconciliation of GAAP and Non-GAAP Measures
Slide 26: Reconciliation of GAAP and Non-GAAP Measures, Continued
Reconciliation of GAAP and Non-GAAP Measures, Continued (3 nsbavcends sor For the Ques As oo Fae he Yrs End Deoonber 31 bee 3, 30 200 in 30,2003 Nw a on to Fikieny Mem Total Novae parent $ mI § RMS mms wa SMA G SRIF IDIOM § THON s IHRE -Ameriztion of Core Dept irengbles Woy oy) =) (7) (1408) 255) 19
Slide 27: Reconciliation of GAAP and Non-GAAP Measures, Continued
Reconciliation of GAAP and Non-GAAP Measures, Continued (240 hasan, roe! per aharedte) x oc Forth ares Eda, sof eth Yer tnded December 3 Dee FTO? eg 30,2007 sn 30,2077 WT ie aang 020 za a Stools egnty SUT § MMS S YeRE S LmSID —-§ oMRSeT SFM Ss OIRO S TIRZ STATS Less: Prefered Stok Gras riage craven
Slide 28: Reconciliation of GAAP and Non-GAAP Measures, Continued
Reconciliation of GAAP and Non-GAAP Measures, Continued (on thousords) ‘stan Carne-Off acoures) Deal: ‘Average Leas cuting Loans HelorSale and Nenacenl Loans) S Assogrs S Soisase $ 198753 $ Garaei0 $ 73ense4 Net Loan Ghage ts (Recoveries) hageorts 8 wos 50% § wm Sa sad Recoveries om 319, 3) 05 ay ‘W
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