First of Long Island — Merger or Acquisition (September 2024)
18 slides from First of Long Island's merger presentation, Sep 5, 2024
Slide 1: Accelerating Growth On Long Island Through A Strategic Merger
& ConnectOne Bancorp, Inc. (NASDAQ: CNOB) Accelerating Growth On Long Island Through A Strategic Merger With The First Of Long Island Corporation (NASDAQ: FLIC) ANFirst of Long Island Corporation September 5, 2024
Slide 2: Forward Looking Statements
Forward Looking Statements CAUTIONARY NOTES ON FORWARD LOOKING STATEMENTS. All nomhistorical statements in this presentation (cluding without limitation statements regarding the pro forma effect of the proposed transaction, cost Savings, anticipated expense totals, the accretive nature of the propos
Slide 3: Important Additional Information
Important Additional Information Inconneetion with the proposed merger with The Fist of Long Island Corporation, ConnectOne will file with the Securties and Exchange Commission (the "SEC? a registration statement on Form S-4t register the shares of ConnectOne commen stock to be issued in connection
Slide 4: Pro Forma Franchise Overview
| Pro Forma Franchise Overview Pro Forma Geographic Footprint and Financial Highlights Nassau County Deposit Market Share pein poe an inten om) share 8 Repeoee58 909 toe 19 8 seyret Bone 0) a8 Suffolk County Deposit Market Share ‘ne Conmniy Beans he OH = BBEEE - = iN
Slide 5: Strategic Rationale
Strategic Rationale Strategic Market Expansion Valuable Franchise with Sound Balance Sheet Attractive Financial Impact Materially accelerates CNOB's Longisland expansion strategy ‘Adds over $3 billion of deposits in demographically attractivemarkets Local market share of #4 in Nassau County and #5 i
Slide 6: FLIC Company Snapshot
FLIC Company Snapshot ANFirst ‘of Long island Corporation Ticker: FLIC (NASDAQ) | HQ: Melville, NY = Franchise Highlights: ~ Founded in 1927 - 4largest bank headquartered on Long Istand = Serves the financial needs of small to mi businesses, professionals, not-for-profits, Municipalities and consume
Slide 7: Attractive Deposit Base and History of Prudent Underwriting
Attractive Deposit Base and History of Prudent Underwriting Low Cost of Deposits Strong Underwriting Practices NPAs / Loans + OREO (%) 200 45 450 425 , fe Tt zoey 2020 amy 2022 BeRIY 202401 20402 OFLC IY Metro Peer Mian Minimal Charge-Off: NCOs / Average Loans (%) Last Five Years oa 020 ausy—2ooy—au
Slide 8: Loan Portfolio and Improves Funding
ies Loan Portfolio and Improves Funding ‘= Balanced loan pontatioona proforma basis ‘= Meaningtuly improves CNOBS deposit composition; addition ofFLIC increases CNOB demand depositsto 22% of total ‘= Both companies are liality sensitive and well positioned for futher margin expansion na falling rate
Slide 9: Comprehensive Due Diligence Conducted
Comprehensive Due Diligence Conducted Due Diligence ‘Scope of Review Key Diligence Focu ‘Areas creditReview ‘Summary &1N © Comprehensive due dligence review of FLIC completed over a three-month period © Diligence review covered all functional areas, in addition to business strategies, clients, assoc
Slide 10: Transaction Summary
Transaction Summary ‘structure and Consideration 100% stock consideration = 0.5175xshares of CNOB 10 be issued for each share of FLIC $12.40 per share”? '$283,9 milion aggregate deal value ‘and Multiples. Long Island Market Pro Forma Closing Core Deposit Premium 39% Price / 2025 Earnings 12.0% '= Si
Slide 11: Summary Transaction Assumptions
Summary Transaction Assumptions crossing $10 Billion ‘Merger Charges capital 2 1 CNOB based on “street” estimates 'm FLICbased on “street” estimates, adjusted for 26% effective tax rate | 95% of FLIC noninterest expense, phased in 50% in 2025, 100% thereafter Assumes standalone cost of crossing $10
Slide 12: Estimated Financial Impact
| Estimated Financial Impact Including Rate Marks Excluding Rate Marks” — With $100 Miltion Subordinated Debt Raise 36% 9% 7.9% 9.8% 13.3% 445% 2025E EPS 20256 EPS Toe ceri Total capital cre ‘cretion Aceretion Ratio Ratio Ratio Total Capital Excluding Subordinated Debt Raise 12% 0.5% 7.9% 9.8% 12.4%
Slide 13: Top Tier Pro Forma Profitability with Valuation Upside
Top Tier Pro Forma Profitability with Valuation Upside 2025E ROATCE (%)® | i i i m2 2, TTT 92 s9 a7 a7 Tre noe 2025E Efficiency Ratio (%) oa ons cor 645 50 sn 7 Se 542 554 siti il i one 2025E Net Interest Margin (%)® 2a 369 (Gioszsin) 328 sa as ste | 346 3.39 3.39 3.39 HI ll itis Pro Foi?) HOB ‘= Pr
Slide 14: Transaction Benefits All Stakeholders
Transaction Benefits All Stakeholders 228 — CLIENTS —— * Greater ability to serve the Long Island market + Expanded branch network + Smooth client transition anticipated + Leverages CNOB's, investments in technology to enhance client experience + Ability to offer franchise lending opportunities thro
Slide 15: ConnectOne Bancorp, Inc.
& ConnectOne Bancorp, Inc.
Slide 16: Appendix
Appendix HH HH H Hh H H H H hh HH | & ConnectOne Bancorp, Inc.
Slide 17: Pro Forma Earnings Accretion Reconciliation
Pro Forma Earnings Accretion Reconciliation BAN: {S rmllons except per share amounts) mmasv Wwlinterest_ Ex. interest Rete Marks Rate Marke ‘OnoB Eeminge 3792 wD Fe Eemings 260 260 Nommalzaton of FUG Eamings ot 26% Tax Rate 9) «9 ‘Combined Earnings 003 «S100 Merger Related Adjustments!” ‘eet Saunge®
Slide 18: Pro Forma Tangible Book Value Reconciliation
Pro Forma Tangible Book Value Reconciliation Closing (6 A milions excepe per share amounts) Balance Sheet Shares mm) PerShare —_ n milions) ‘GNOB Standalone Common Equiy at Close 31,160 38a “Transaction Consideration ‘84 Less: Goedel and Other tangs az) Fie Teva Gises 908 ‘GNOB Standalone Tangible C
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