Connectone Bancorp, Inc. · NASDAQ:CNOB
Connectone Bancorp — Investor Presentation (September 2023)
29 slides from Connectone Bancorp's investor presentation, Sep 6, 2023
Slide 1: ConnectOne Bancorp, Inc. Investor Presentation September 2023
& ConnectOne Bancorp, Inc. CNOB Investor Presentation September 2023
Slide 2: About ConnectOne Bancorp, Inc.
About ConnectOne Bancorp, Inc. ConnectOne Bancorp, Inc. is a modern financial services company with $97 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 produ
Slide 3: High Operating Performance
High Operating Performance LTM and 2023 Q2 Financial Highlights 1.73% 9.2% 1.14% Tangible Common LT™M Core Return Equity Ratio on Assets LTM PPNR' of average assets 3.24% 44.1% LTM Net Interest a Margin LIM Efficiency Ratio ‘Note: See Appendix PNR represents pre-tax netinceme excluding the impactof
Slide 4: Strong Core Net Interest Margin
Strong Core Net Interest Margin 5.49% a 5.35% 68% 459% 531% 487% aa 449% 447% 455% 4.20% is 2.36% i 1.62% te _—— 1.08% 0.94% — —— 058% —~—— 2018Y 2019¥ 2020Y 2021¥ (2022¥ 1923 2Q23 eLoans Imerest-eaming Assets —g=Cost of Funds Net Interest Margin 7 3.46 % 2.81% 2018Y 2019Y 2020Y 2021Y 2022¥ 1923 292
Slide 5: Robust Profitability and Capital Generation
Robust Profitability and Capital Generation Return on Average Assets Tangible Book Value per Share Growth 1.69% f p $16.06 \ $1442 0.82% 0.83% | 2018Y 2019Y 2020Y 2021Y + 2022 1923-2923 2018y —2019Y_ 2020 2021Y «©2022 «2923 —e- CNOB me Peers(1) Bsns Source: Company Filings, SEP Global Maret ieligenc
Slide 6: Non-Interest Income
Non-Interest Income Diversification of Revenue Minimal dependency on income streams subject to regulatory pressures BoeFly + Strong fee income momentum + Growing opportunities to expand product set Gains on Sale SBA Division + Commercial Residential + Interchange fees + Overdraft fees + Maintenance
Slide 7: Diversified and Granular Loan Portfolio
Diversified and Granular Loan Portfolio ($ in millions) Select Loan Portfolio Details as of June 30, 2023 ‘Segment sM % of Total Underwriting Standards, Construction $596 T% Propet fess Developers Background and expertise ‘Set nan to cost Savances Rental fallback Plan andoost review hneret reserve P
Slide 8: Loan Portfolio Detail
Loan Portfolio Detail ($ in millions) Residential/ Consumer, 3% Business Loans, 27% Multifamily, 33% Note: Mumbers may not sum to 100% due to rounding Source: Company Figs, Regulatory Filgs, and Campany Designations and loans exchides PPP. Type [Balance | Percentage Type [Balonce Percentage |CRE - O
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% 1.27% 080% 0.82% 15% 1% ge .09% aK 201BY 2019Y 2020Y 2021Y 2022Y 1923 2923 2018 2019Y 2020Y 2021Y 2022¥ 1923 2923 NPAs Excl. Taxi/ Total Assets = NPAs / Total Assets ACL By Seg
Slide 10: 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 Und
Slide 11: Deposit Franchise
Deposit Franchise Deposit Composition as of June 30, 2023 Average Total Deposits $9,000 $8,000 $7,000 36,000 $5,000 $4,000 $3,000 $2,000 $1,000 $s Demand — ; Te = wet YearEnded Year Ended VearEnded YearEnded YearEnded _ Quarter ‘me 2019 2020, 2012022 Ended ne 30,2003, Uninsured Deposits as of June 3
Slide 12: Enhancing Our Deposit Franchise
Enhancing Our Depos Tech Investments Partnerships with Mentl and Nymbus provide opportunities to leverage modem tech to. efficiently grow deposits and continu nd our reach Mant! will replace our current in branch and online deposit rigination software enhancing ent experiences and supporting our dyn
Slide 13: 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 14: 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 m Banking Hub model allows ConnectOne
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 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 interes
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. g ConnectOne a better place to be m New Business Lines + The opportunity to pick up clients w
Slide 17: 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 18: Acceleration of Growth: Tech-Forward Leadership
Acceleration of Growth: Tech-Forward Leadership Capitalizing on Niche Specific Opportunities BoeFly day'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. —» @ BoeFl
Slide 19: Best-In-Class Efficiency
Best-In-Class Efficiency One of the Best Efficiency Ratios in the Industry Historical Operating Performance sI7% 514 43.7 %| 38.3 fam 38.6 3] % 8% y% p 2019Y 2020Y 2021Y 2022Y 1923 2928 LCNOR Eticieney Ratio me Peers Eticiency Ratio —+—cNOB Operating NE/ Avg Assets + Peers OperatingNIE/ Avg, Assets
Slide 20: A People First Culture with Recognized Success
A People First Culture with Recognized Success Best Places weritgsrepreudtobe lea Safety Rated! to Work —
Slide 21: 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 & ConnectOne Bancorp, Inc.
Slide 24: Loan Growth Metrics (ex. PPP)
Loan Growth Metrics (ex. ppp) $3,000 8.17% iam $2,500 ie $2,000 aso% 468% e100 = a02 $924 467% aS $1,000 $585 $596 aor S831 gst $500 | $191 - $328 inal $311 g999 $319 $287 $279 $264 22 15 . i al Bea ee” mee’ 1Q 2022 2Q 2022 3Q 2022 4Q 2022 1Q 2023 2Q 2023 emma aaa Mar) em, ©. Ria aaa) eae ras ale CR
Slide 25: CRE Portfolio Additional Detail
CRE Portfolio Additional Detail Office Composition as of June 30,2023 Multifamily Loans as of June 30,2023 FL Other Maturing or Repricing in Other NYC 6% 1% 12-months 10% Boroughs 11% Manhattan: T% ~~ NY (Ex NYC) NJ 13% 62% All Other 90% + Office portfolio is total under 7% of total loans, + Highly
Slide 26: Reconciliation of GAAP and Non-GAAP Measures
Reconciliation of GAAP and Non-GAAP Measures ‘sof or For the Quarters Ended, (Ss inthousands) ara 2025, War 31,2023 Des. 31,2022 Sep m0 202 i Retum on Equity Measures Net income Availabe fo Common Stockholdars 8 19885 $ 20 $ 31087 $ mm § 101758 ‘Amortization of Core Deposit ntangbles After Tax 260 2
Slide 27: Reconciliation of GAAP and Non-GAAP Measures, Continued
Reconciliation of GAAP and Non-GAAP Measures, Continued (Ss inthousands) ‘As ofor For the Quarters Ended, ‘As of cr For the Yeors Ended December 31, “Tan 30, 20S War. 31, 2023 Dec. 31, 2022 Sop 30 DD TH Wore ___2019 2070 2021 00 ficiency Measures Toal Noninteest Expenses S350 § stg S$ was Ss MS ‘Amo
Slide 28: Reconciliation of GAAP and Non-GAAP Measures, Continued
Reconciliation of GAAP and Non-GAAP Measures, Continued (6's in thousands, except per share data) ‘As of or For the Years Ended December 31, 2078, 2019 2020 2021 72022, Book Value Per Share: Stockholders equity $ 1199397 § 1199,970 $ 613927 § 731,190 § 915310 $ 1124212 $1,178,751 Less: Preferred Sto
Slide 29: Reconciliation of GAAP and Non-GAAP Measures, Continued
Reconciliation of GAAP and Non-GAAP Measures, Continued (Gs inthousande) ‘As of or For the Quarters Ended, As of or For the Yeore Ended December 31, Tn 30,2028 Mar. 31, 2023 De 2019 2020 2021 Ey ‘Net Loan Charge-Off (Recoveries) Detail ‘Average Loans (Including Loans Heldfor Sale and Nonacerul Losns
ConnectOne Bancorp — Investor Presentation (September 2023) on 6ix