Byline Bancorp, Inc. · NYSE:BY
Byline Bancorp — Investor Presentation (May 2020)
36 slides from Byline Bancorp's investor presentation, May 28, 2020
Slide 1: Investor Presentation – May 2020
Investor Presentation – May 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
Management team has extensive in-market experience with a track record of building shareholder value Highly accomplished and experienced Board Demonstrated acquisition ability, having closed and integrated 3 whole bank acquisitions and 1 leasing transaction Insider Ownership of 37.36% Supplement Gro
Slide 4: A Leading Chicago Commercial Banking Franchise
Total Assets $5,735 Total Loans & Leases $3,860 Total Deposits $4,239 Total Equity $763 Tangible Common Equity(1) $574 Loans & Leases / Deposits Ratio 91.38% Commercial Loans / Total Loans(2) 62.75% Non-interest Bearing Deposits / Total Deposits 30.45% Adjusted Return on Average Assets(1) 0.25% Net
Slide 5: The Byline Franchise
The Byline Franchise Commercial Banking Small Business Capital Size Customer and Market Focus $4.2 billion in total deposits 57 branch locations Serves small businesses and consumers within branch footprint Offers traditional retail deposit products through branch network and online and mobile banki
Slide 6: The Byline Franchise (continued)
The Byline Franchise (continued) Sponsor Finance Wealth Management Size Customer and Market Focus $173.2 million lease portfolio Nationwide coverage Provides financing solutions for equipment vendors and their end-users Industries served: healthcare, manufacturing, technology, specialty vehicles, en
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: Positioned to Manage Through the COVID-19 Environment
Positioned to Manage Through the COVID-19 Environment
Slide 9: Impact and Response to COVID-19
Impact and Response to COVID-19 Colleagues Initiated COVID-19 incident response action teams at the end of February Enabled and trained over 640 colleagues (100% non-retail) to support work from home environment Provided an additional 160 hours of paid time-off implemented for issues related to COVI
Slide 10: Providing COVID-19 Relief and Support for our Customers
Providing COVID-19 Relief and Support for our Customers Paycheck Protection Program (PPP) Loan Modifications to Borrowers Began receiving PPP applications on April 3 Fully fund PPP loans by drawing from the Federal Reserve PPP Lending Facility Estimated processing fees of 3.5% of funded PPP loans Ov
Slide 11: Strong Liquidity Profile with Excess Capital Position
$762.7 million total stockholders equity Modest capital deployment Repurchased $1.7 million of common shares in Q1 and paused in March Common dividend declared of $0.03 for the quarter ended March 31, 2020 $18.3 million in securities gains as of March 31, 2020. AFS: $18.2 million HTM: $0.1 million P
Slide 12: Loan Portfolio Overview
Project Sox Offer Migration Loan Portfolio Overview Commercial LOC Exposure ($ in millions) Loans by Rate Type CRE & Commercial Loans by Industry Type Implemented credit focused risk management approach to manage $3.7 billion loan portfolio on a real-time basis Refreshed and analyzed capital stress
Slide 13: Early Impact Industries Sensitive to COVID-19
Early Impact Industries Sensitive to COVID-19 ($ in millions) Total loan portfolio stood at $3.7 billion as of March 31, 2020; Aggregate exposure to early impact industries ~ 10.3% of portfolio Restaurants represent the largest exposures at $125.2 million or 3.4% of total loans Hotel concentration i
Slide 14: Early Impact Industries: Hotels, Restaurants, Amusement
Hotels Portfolio Characteristics Balance: $57 million Conventional: $41.6 million SBA: $15.7 million Guaranteed: $0.9 million Average loan: $831k Largest loan: $9.9 million Exposure: Deferral, PPP, and SBA Subsidy Deferrals: $18.5 million / 32% PPP: $14.5 million / 25% SBA subsidy: $11.9 million / 7
Slide 15: Early Impact Industries: Religious, Nursing, Truck
Religious Portfolio Characteristics Balance: $43 million Conventional: $42.6 million SBA: $0.4 million Guaranteed: $0.3 million Average loan: $0.3 million Largest loan: $8.2 million Exposure: Deferral, PPP, and SBA Subsidy Deferrals: $2.9 million / 7% PPP: $15.6 million / 36% SBA subsidy: None Early
Slide 16: We are a Top Government-Guaranteed Lender
We are a Top Government-Guaranteed Lender ($ in millions) Managed SBA 7A and USDA Loans Top 5 SBA lender nationally; #1 lender in Illinois and Wisconsin Leveraged SBA platform to originate approximately 3,500 PPP loans(2) As part of coronavirus debt relief efforts, the SBA will pay 6 months of princ
Slide 17: Net Interest Margin Overview
Project Sox Offer Migration Net Interest Margin Overview Average cost of deposits down to 62 bps for the month of March compared to 75 bps for the quarter $810.2 million CDs maturing in 2020 at an average rate of 1.66% As of May 2020, funded PPP loans to add estimated loan fee income of 3.5% deferre
Slide 18: Areas of Focus
Actively protect the safety and financial health of our employees, customers and communities During the crisis and beyond, work diligently with customers to understand its impact on their business and help them manage it in a constructive fashion Operate our business with the utmost focus on safety
Slide 19: First Quarter 2020 Financial Review
First Quarter 2020 Financial Review
Slide 20: First Quarter 2020 Highlights
Total revenue of $62.0 million, a decrease of 9.4% from 4Q19 and unchanged from 1Q19 Net interest income decreased 2.0% from 4Q19 primarily due to a decline in accretion income Non-interest income was lower than 4Q19 principally due to lower net gain on sales of loans Recorded $3.1 million fair valu
Slide 21: Loan and Lease Trends
Loan and Lease Trends ($ in millions) Loan & Lease Originations and Payoffs March 31, 2019 March 31, 2020 Originated and Acquired Loan & Lease Portfolio Total loans and leases were $3.9 billion at 1Q20, an increase of $74.6 million from the prior quarter, and 8.2% from 1Q19 Originated portfolio incr
Slide 22: Deposit Trends
Total deposits increased $91.3 million to $4.2 billion Growth entirely attributable to increases in lower-cost deposit categories Non interest bearing stood at 30.5% and core at 86.0% of total deposits Money market demand deposits increased $222.9 million Total deposit costs decreased 13 basis point
Slide 23: Net Interest Income and Net Interest Margin Trends
Net Interest Income and Net Interest Margin Trends ($ in millions) Net Interest Income decreased $1.1 million to $52.8 million, primarily due to lower accretion income, partially offset by a decline in interest expense Net interest margin decreased 15 basis points to 4.17% from 4Q19 Excluding accret
Slide 24: Non-Interest Income Trends
Total Non-Interest Income Non-Interest Income Trends ($ in millions) Non-interest income decreased $5.3 million from 4Q19 Lower net gains on sales of loans Unfavorable change in fair value of servicing asset due to market slowdown resulting from COVID-19 Lower swap-related income Volume Sold and Ave
Slide 25: Non-Interest Expense Trends
Non-Interest Expense Trends ($ in millions) Non-interest expenses, excluding significant adjustment items(1), was $42.8 million, down from $43.4 million in 4Q19 Higher salaries and employee benefits due to higher payroll taxes and increased employer costs related to benefits, partially offset by a d
Slide 26: Asset Quality Trends
Asset Quality Trends ($ in millions) Non-performing assets to total assets increased to 1.05% in 1Q20 from 0.87% in 4Q19 NPLs/ Total Loans & Leases increased by 31 bps to 1.31% in 1Q20 from 1.00% in 4Q19 NPLs/ Total Loans & Leases (excluding government guaranteed) increased to 1.18% in 1Q20 from 0.8
Slide 27: Appendix
Appendix @ Byline Bancorp, Inc:
Slide 28: 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.
Slide 29: Non-GAAP Reconciliation
@ Byline Bancorp, Inc: Non-GAAP Reconciliation (dottarsin thousands, pershare data) heincome ton andearning pr stare excluding sigan Reported Netincome (Loss) Significant item: airment charges on assets haldfor sale Merger-elated expense Core system conversion expense Taxbenefit on significant items
Slide 30: Non-GAAP Reconciliation (continued)
Non-GAAP Reconciliation (continued)
Slide 31: Non-GAAP Reconciliation (continued)
Non-GAAP Reconciliation (continued)
Slide 32: Non-GAAP Reconciliation (continued)
Non-GAAP Reconciliation (continued)
Slide 33: Non-GAAP Reconciliation (continued)
Non-GAAP Reconciliation (continued)
Slide 34: Midwest Public Peers with Assets between $2 - $7 billion
Midwest Public Peers with Assets between $2 - $7 billion (1) Note: Midwest Public Peers trade on NYSE and NASDAQ. Pro forma for the acquisition of United Community Financial (UCFC) closed on 1/31/2020. ($ in millions)
Slide 35: Illinois Public Peers
Illinois Public Peers Note: Illinois Public Peers trade on NYSE and NASDAQ. ($ in millions)
Slide 36: Slide 36