Byline Bancorp, Inc. · NYSE:BY
Byline Bancorp — Q3 2018 Earnings Presentation
20 slides from Byline Bancorp's earnings presentation, Oct 26, 2018
Slide 1: Q3 2018 Financial Results
Q3 2018 Financial Results Exhibit 99.1
Slide 2: Forward-Looking Statements
Forward-Looking Statements The information included herein may contain “forward-looking statements” within the meaning of the U.S. Private Securities Litigation Reform Act of 1995. Any statements about Byline’s expectations, beliefs, plans, strategies, predictions, forecasts, objectives or assumptio
Slide 3: Third Quarter 2018 Highlights
Third Quarter 2018 Highlights Loan Production Earnings Revenue Deposits $218.1 million of loan and lease originations, up from $195.2 million in prior quarter Net loan growth of $103.4, up 3.1% on a linked quarter basis and 12.3% annualized Solid loan demand during the quarter, particularly in CRE a
Slide 4: Loan and Lease Trends
Loan and Lease Trends Loan & Lease Portfolio September 30, 2017 September 30, 2018 ($ in millions) Originated and Acquired Loan & Lease Portfolio Total loans and leases were $3.5 billion at 3Q18, an increase of $107.1 million or 3.2% from end of prior quarter and 55.9% from 3Q17 Originated portfolio
Slide 5: Deposit Trends
Total deposits increased $95.9 million to $3.7 billion, up 2.6% from the prior quarter Total deposit costs increased to 64 bps from 52 bps in the prior quarter Cost of interesting bearing deposits increased 20 bps to 95 bps Deposit Trends Average Non-Interest Bearing Deposits ($ in millions) Deposit
Slide 6: Net Interest Income and Net Interest Margin Trends
Net Interest Income and Net Interest Margin Trends Net interest income increased $13.5 million to $52.6 million, primarily due to full quarter contribution of First Evanston Net interest margin increased 30 basis points to 4.73% from 2Q18 due to higher accretion income NIM (excluding accretion incom
Slide 7: Non-Interest Income Trends
Total Non-Interest Income Non-Interest Income Trends Non interest income decreased $3.4 million from 2Q18 Lower net gains on sales of loans $2.4 million impairment charge to servicing asset due to higher prepayment speeds All other major fee generating items increased due to full quarter impact of F
Slide 8: Non-Interest Expense Trends
Non-Interest Expense Trends 3Q18 non-interest expense reflects the impact of a full quarter of First Evanston’s operations compared to one month in 2Q18 Non-interest expense, excluding significant adjustment items (1), increased 6.6% from 2Q18 Higher salary and employee benefit expenses related to f
Slide 9: Asset Quality Trends
Asset Quality Trends Non performing assets stable at 0.71% in 3Q18 compared to 0.70% in 2Q18 Other real estate owned declined by $1.5 million during the quarter NPLs/ Total Loans & Leases increased to 0.87% in 3Q18 from 0.81% in 2Q18 NPLs/ Total Loans & Leases excluding government guaranteed portion
Slide 10: Acquisition of Oak Park River Forest Bankshares, Inc.
Acquisition of Oak Park River Forest Bankshares, Inc. Strategically enhancing our deposit franchise
Slide 11: Builds Upon Our Strengths: Transaction Highlights
Builds Upon Our Strengths: Transaction Highlights 1 2 3 Expands our footprint to the attractive and complementary Oak Park and River Forest markets Only community bank in Oak Park/River Forest market Attractive customer demographics Complementary branch footprint with average deposits per branch ~$1
Slide 12: Overview of Community Bank of Oak Park River Forest
Source: SNL Financial; Financial data presented at and for the three months ended 6/30/2018 Per bank-level regulatory filings as of 6/30/2018 Non-accrual loans primarily tied to a single, isolated C&I credit Map does not include one Byline branch in Milwaukee MSA Overview of Community Bank of Oak Pa
Slide 13: Enhancing our Core Deposit Franchise in Chicago
Source: SNL Financial Defined as total deposits less time deposits with balances greater than $100,000 Oak Park River Forest cost of interest bearing deposits per bank-level regulatory filings Calculated as the change in cost of interest bearing deposits divided by the change in the target Fed Funds
Slide 14: Pro Forma Loan and Deposit Composition
Source: SNL Financial Note: Loans and deposits per regulatory filings as of 6/30/2018 Assumes no purchase accounting adjustments Pro Forma Loan and Deposit Composition Byline Oak Park River Forest Pro Forma (1) Byline Oak Park River Forest Pro Forma (1) Gross Loans: $3,355mm Yield on Loans: 6.02% Gr
Slide 15: Overview of Transaction & Key Assumptions
Based on BY’s closing price of $21.30 as of 10/17/2018 Based on BY’s closing price of $21.30 as of 10/17/2018; calculation of aggregate transaction value includes in-the-money options Calculated on a fully-diluted basis for BY and Oak Park River Forest Overview of Transaction & Key Assumptions Consi
Slide 16: Appendix
Appendix @ Byline Bancorp, Inc:
Slide 17: Five Quarter Financial Summary
Five Quarter Financial Summary ($ in millions, except per share data) Represents a non-GAAP financial measure. See “Non-GAAP Reconciliation” in the appendix.
Slide 18: Non-GAAP Reconciliation
@ Byline Bancorp, Inc: Non-GAAP Reconciliation As of orFor the Three Months Ended March 24 September 30, Tune 38. Decembert4 September 30, (dolirsin thousands except share and pe share dataiatos ‘anualzed, where aplleabe) 28 : Reported net interest marge arse aaa 4 ofaceretion income on acguredloane
Slide 19: Non-GAAP Reconciliation (continued)
Non-GAAP Reconciliation (continued)
Slide 20: Non-GAAP Reconciliation (continued)
Non-GAAP Reconciliation (continued)