Byline Bancorp, Inc. · NYSE:BY
Byline Bancorp — Q4 2019 Earnings Presentation
26 slides from Byline Bancorp's earnings presentation, Jan 28, 2020
Slide 1: Investor Presentation – January 2020
Investor Presentation – January 2020 Exhibit 99.1
Slide 2: Forward-Looking Statements
Forward-Looking Statements This communication contains forward-looking statements within the meaning of the U.S. federal securities laws. Forward-looking statements include, without limitation, statements concerning plans, estimates, calculations, forecasts and projections with respect to the antici
Slide 3: The Byline Difference
Strengthen Franchise through Acquisitions Grow and establish presence in the market Focus on targets with strong deposit base Total Acquired Loans and Leases Total Originated Loans and Leases The Byline Difference Source: Company Management and SNL Financial. Note: Data for the quarter ended Decembe
Slide 4: A Leading Chicago Commercial Franchise
Total Assets $5,522 Total Loans & Leases $3,786 Total Deposits $4,148 Total Equity $750 Tangible Common Equity(2) $559 Loans & Leases / Deposits Ratio 92% Commercial Loans / Total Loans(3) 62% Non-interest Bearing Deposits / Total Deposits 31% Adjusted Return on Average Assets(2) 1.17% Net Interest
Slide 5: The Byline Franchise
The Byline Franchise Commercial Banking Wealth Management Size Customer and Market Focus $4.1 billion in total deposits 61 branch locations⁽¹⁾ Serves small businesses and consumers within branch footprint Offers traditional retail deposit products through branch network and online and mobile banking
Slide 6: Niche Lending Businesses
Niche Lending Businesses Small Ticket Equipment Leasing Sponsor Finance Size Customer and Market Focus $604.1million loan portfolio Services throughout the Midwest and California Fourth most active lender in the U.S., #1 in Illinois and Wisconsin Selected as the Illinois SBA 7(a) Lender of the Year
Slide 7: Progress Report on Growth Strategies
Drive Organic Loan Growth Deliver Improved Profitability Strengthen Franchise through Acquisitions Continue to bring in top tier talent with teams attracted to culture and local decision making Capitalize on market opportunities due to recent consolidation and the CRE concentration limitations of ot
Slide 8: Strengthening the Byline Franchise through Accretive Transactions
Strengthening the Byline Franchise through Accretive Transactions Key Highlights Closed May 31, 2018 Pricing: 1.7x TCE / 9.1% core deposit premium Expanded Byline’s franchise to Evanston market with #2 deposit market share in the city Provided low-cost core deposit base with 36% DDA Added strong com
Slide 9: 2020 Outlook and Strategic Priorities
2020 Outlook and Strategic Priorities Areas of Focus Priorities for Capital Deployment Disciplined expense management to gain operating leverage Achieve loan and core deposit growth Continue executing relationship banking strategy Maintain credit and underwriting discipline Support organic balance s
Slide 10: Fourth Quarter 2019 Results
Fourth Quarter 2019 Results @ Byline Bancorp, Inc:
Slide 11: Fourth Quarter 2019 Highlights
Fourth Quarter 2019 Highlights Balance Sheet Earnings Revenue Key Operating Trends Total revenue of $68.4 million, a decrease of 5.8% from 3Q19 and an increase of 1.3% from 4Q18 Net interest income decreased 6.8% from 3Q19 reflecting lower margin given lower rate environment Non interest income was
Slide 12: Loan and Lease Trends
Loan and Lease Trends Loan & Lease Originations and Payoffs December 31, 2018 December 31, 2019 ($ in millions) Originated and Acquired Loan & Lease Portfolio Total loans and leases were $3.8 billion at 4Q19, a decrease of $45.4 million from the prior quarter, but up 8.1% from 4Q18 Originated portfo
Slide 13: Government-Guaranteed Lending
Government-Guaranteed Lending Managed SBA 7A and USDA Loans Top 5 SBA lender nationally; #1 lender in Illinois and Wisconsin $131.9 million in closed loan commitments in 4Q19, compared to $125.1 million in 3Q19 Managed government guaranteed portfolio increased $28 million to $1.9 billion as of 4Q19
Slide 14: Deposit Trends
Total deposits increased $67.3 million to $4.1 billion Growth entirely attributable to increases in lower-cost deposit categories Average non-interest bearing deposits increased $65.4 million Total deposit costs decreased six basis points from prior quarter Loan to deposit ratio declined to 91.56% f
Slide 15: Net Interest Income and Net Interest Margin Trends
Net Interest Income and Net Interest Margin Trends Net Interest Income decreased $3.9 million to $53.9 million, due to lower accretion and lower interest rates partially offset by lower funding costs Net interest margin decreased 30 basis points to 4.32% from 3Q19 Loan yields were impacted by accret
Slide 16: Non-Interest Income Trends
Total Non-Interest Income Non-Interest Income Trends Non-interest income decreased $290,000 from 3Q19 Unfavorable change in fair value of servicing asset due to higher prepayment speeds and discount rates Lower net gains on sales of loans Partially offset by higher swap-related income ($ in millions
Slide 17: Non-Interest Expense Trends
Non-Interest Expense Trends Non-interest expenses, excluding significant adjustment items(1), was $43.4 million, down from $44.3 million in 3Q19 Decrease in professional fees as prior quarter reflected non-recurring costs Increase in loan expenses on government guaranteed loans Adjusted efficiency r
Slide 18: Asset Quality Trends
Asset Quality Trends Non-performing assets to total assets declined to 0.87% in 4Q19 from 0.89% in 3Q19 NPLs/ Total Loans & Leases declined by 9 bps to 1.00% in 4Q19 from 1.09% in 3Q19 NPLs/ Total Loans & Leases (excluding government guaranteed) decreased to 0.89% in 4Q19 from 0.98% in 3Q19 Other re
Slide 19: Appendix
Appendix @ Byline Bancorp, Inc:
Slide 20: Hand-Picked Management Team with Deep Market Experience
Hand-Picked Management Team with Deep Market Experience Name Title Years in Banking Years in Market Prior Experience Alberto Paracchini CEO & President 26 26 Served as Principal for BXM Holdings, Inc. Served as President and CFO of Popular Financial Holdings Former CFO and COO at Banco Popular North
Slide 21: Five Quarter Financial Summary
Five Quarter Financial Summary ($ in millions, except per share data) Represents a non-GAAP financial measure. See “Non-GAAP Reconciliation” in the appendix. For the Three Months Ended, December 31, 2019 September 30, 2019 June 30, 2019 March 31, 2019 December 31, 2018 Income Statement Net interest
Slide 22: Non-GAAP Reconciliation
@ Byline Bancorp, Inc: Non-GAAP Reconciliation As of orForthe December34, Beptember30, ‘June 30, March 3, December 3%, (Gottasin thousands, per sare data) 2009 019 _ Net income los) and earringsper stare excluding significant Reported Net Income (Loe) $ 15,852 1532 $ 13211 12597 wm Signifeantitems:
Slide 23: Non-GAAP Reconciliation (continued)
Non-GAAP Reconciliation (continued)
Slide 24: Non-GAAP Reconciliation (continued)
Non-GAAP Reconciliation (continued)
Slide 25: Non-GAAP Reconciliation (continued)
Non-GAAP Reconciliation (continued)
Slide 26: Non-GAAP Reconciliation (continued)
Non-GAAP Reconciliation (continued)