Byline Bancorp, Inc. · NYSE:BY
Byline Bancorp — Q2 2020 Earnings Presentation
27 slides from Byline Bancorp's earnings presentation, Jul 24, 2020
Slide 1: Q2 2020 Conference Call
Q2 2020 Conference Call 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: Second Quarter 2020 Summary
Second Quarter 2020 Summary Balance Sheet Solid Performance in a Challenging Environment Credit Management Allowance to loans of 1.17%, or 1.36% excluding PPP loans, compares with 1.08% in 1Q20 and 0.81% in 2Q19 NPLs/Total Loans and Leases of 99bps, or 91 bps excluding government guaranteed, down 32
Slide 4: COVID-19 Response and PPP Program
COVID-19 Response and PPP Program Note: PPP Data as of July 15, 2020 Represents sectors with less than 5% of the PPP portfolio. Implemented a phased-in return to the workplace approach beginning June 29; 70- 80% WFH through end of year ~70% of all locations remain open with access to drive-up and lo
Slide 5: Loan and Lease Deferral Overview
Loan and Lease Deferral Overview Deferrals Deferrals by Industry Note: Data as of July 16, 2020. Represents sectors with less than 5% of the total portfolio. Excludes PPP loans. Period % of Deferrals March 2020 26.2% April 2020 50.7% May 2020 13.8% June 2020 7.3% July 2020 2.0% Business Unit $ Balan
Slide 6: Select COVID-19 Industries
Select COVID-19 Industries ($ in millions) Total loan and lease portfolio (excluding PPP) stood at $3.8 billion as of June 30, 2020; Aggregate exposure to select COVID-19 industries ~ 10.5% of portfolio Restaurants represent the largest exposures at $141.7 million or 3.8% of total loans and leases B
Slide 7: Select COVID-19 Industries Detail: Hotels, Restaurants, Amusement
Hotels Portfolio Characteristics Balance: $57.7 million Conventional: $36.5 million Leasing: $566,000 SBA: $20.7 million Guaranteed: $949,000 Average loan: $663,000 Largest loan: $10.0 million Exposure: Deferral and SBA Subsidy $ of portfolio / % of portfolio Deferrals: $21.2 million / 37% SBA subsi
Slide 8: Select COVID-19 Industries Detail: Religious, Nursing Homes, Trucking
Religious/Non-Profit/Civic Portfolio Characteristics Balance: $42.9 million Conventional: $31.0 million Leasing: $1.7 million SBA: $10.3 million Guaranteed: $345,000 Average loan: $186,000 Largest loan: $8.1 million Exposure: Deferral and SBA Subsidy $ of portfolio / % of portfolio Deferrals: $4.8 m
Slide 9: Loan and Lease Trends
Loan and Lease Trends ($ in millions) Loan & Lease Originations and Payoffs(1) Loans by Segment Originated and Acquired Loan & Lease Portfolio Total loans and leases were $4.4 billion at 2Q20, an increase of $530.9 million from the prior quarter Originated portfolio increased by $610.9 million Growt
Slide 10: Government-Guaranteed Lending
Government-Guaranteed Lending ($ in millions) Managed SBA 7(a) and USDA Loans #2 SBA lender nationally; #1 lender in Illinois and Wisconsin and #3 in Indiana Leveraged SBA platform to originate approximately 3,600 PPP loans As part of coronavirus debt relief efforts, the SBA will pay 6 months of pri
Slide 11: Deposit Trends
Total deposits increased $719.5 million to $5.0 billion Growth entirely attributable to increases in lower-cost deposit categories Money market demand deposits increased $129.5 million and time deposits decreased $74.9 million Non interest bearing increased to 35.7% of total deposits from 30.5% in 1
Slide 12: Net Interest Income and Net Interest Margin Trends
Net Interest Income and Net Interest Margin Trends ($ in millions) Net interest margin decreased 46 basis points to 3.71% from 1Q20 Excluding accretion income, net interest margin declined 39 basis points from 1Q20 Decline in earning asset yields due to decrease in short-term rates and addition of l
Slide 13: Non-Interest Income Trends
Total Non-Interest Income Non-Interest Income Trends ($ in millions) Non-interest income increased $3.6 million from 1Q20 Higher net gains on sales of loans Decrease in loan servicing asset revaluation No securities sales during the quarter Volume Sold and Average Net Premiums Net Gains on Sales of
Slide 14: Non-Interest Expense Trends
Non-Interest Expense Trends ($ in millions) Non-interest expenses was $37.0 million, down from $43.5 million in 1Q20 Lower salaries and employee benefits due to $4.5 million in deferred costs related to PPP loan originations Decline in other non-interest expense due to a decrease in impairment charg
Slide 15: Asset Quality Trends
Asset Quality Trends ($ in millions) Non-performing assets to total assets decreased to 0.82% in 2Q20 from 1.05% in 1Q20 NPLs/ Total Loans & Leases decreased by 32 bps to 0.99% in 2Q20 from 1.31% in 1Q20 NPLs/ Total Loans & Leases (excluding government guaranteed) decreased to 0.91% in 2Q20 from 1.1
Slide 16: Strong Liquidity and Capital Position
Project Sox Offer Migration Strong Liquidity and Capital Position Liquidity Position and Funding Profile Strong Capital Base Loan growth funded through core deposits Access to $2.7 billion of liquidity available Loan / Deposit ratio of 88.62% Cash and cash equivalents of $139.9 million $63.4 million
Slide 17: Appendix
Appendix @ Byline Bancorp, Inc:
Slide 18: Select COVID-19 Industries: Loan and Lease Pool by Industry
Select COVID-19 Industries: Loan and Lease Pool by Industry ($ in thousands) Note: Data as of June 30, 2020. Commercial Real Estate Residential Real Estate Construction Commercial and Industrial Installment and Other Leasing Financing Receivables PPP Total Restaurants $ 73,180 $ 625 $ - $ 64,977 $ -
Slide 19: Projected Acquisition Accounting Accretion
Projected Acquisition Accounting Accretion ($ in millions) Projected Accretion(1) ($ in millions) (1) Projections are updated quarterly, assumes no prepayments and are subject to change. Accretion as a Percentage of Total Revenue
Slide 20: PPP Impact on 2Q20 Financials
PPP Impact on 2Q20 Financials At or for the Three Months Ended 6/30/20 Total Loans $626.6 million Average Loans $439.3 million Average Other Borrowings(1) $48.8 million Interest and Processing Fee Income $2.9 million Interest Expense $0.04 million Average Loan Yield excluding PPP 4.94% Deferred Loan
Slide 21: Five Quarter Financial Summary
Five Quarter Financial Summary ($ in millions, except per share data) Represents a non-GAAP financial measure. See “Non-GAAP Reconciliation” in the appendix.
Slide 22: Non-GAAP Reconciliation
@ Byline Bancorp, Inc: Non-GAAP Reconciliation (dottasin thousands, pe share data) Met income and earnings per share excluding significant items Merger-related expense Coresystem conversion expense Texbenefiton significant items ‘Adjusted et Income Reported Diluted Earnings perShare Signifcantitems
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)
Slide 27: Byline Bancorp, Inc.
By) Byline Bancorp, Inc.