Byline Bancorp, Inc. · NYSE:BY
Byline Bancorp — Investor Presentation (September 2020)
36 slides from Byline Bancorp's investor presentation, Sep 22, 2020
Slide 1: Investor Presentation – September 2020
Investor Presentation – September 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, since 2014 Insider Ownership of 37.36% Su
Slide 4: A Leading Chicago Commercial Banking Franchise
Total Assets $6,394 Total Loans & Leases $4,391 Total Deposits $4,958 Total Equity $781 Tangible Common Equity(1) $594 Loans & Leases / Deposits Ratio 88.62% Commercial Loans / Total Loans(2) 65.37% Non-interest Bearing Deposits / Total Deposits 35.67% Adjusted Return on Average Assets(1) 0.59% Pre-
Slide 5: The Byline Franchise
The Byline Franchise Size Customer and Market Focus $5.0 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 banking platforms $2.3 billion loan portfolio S
Slide 6: Diversified product set: leasing, sponsor finance, wealth management
Size Customer and Market Focus $176.8 million lease portfolio Nationwide coverage Provides financing solutions for equipment vendors and their end-users Industries served: healthcare, manufacturing, technology, specialty vehicles, energy efficiency $285.3 million loan portfolio Lower middle market f
Slide 7: Progress Report on Growth Strategies and Key Performance Indicators
Drive Organic Loan Growth Deliver Improved Profitability Strengthen Franchise through Acquisitions Top tier talent with local decision making Capitalize on market opportunities due to recent consolidation and the CRE concentration limitations of other banks Leverage infrastructure to keep expense gr
Slide 8: Positioned to Manage Through the COVID-19 Environment
Positioned to Manage Through the COVID-19 Environment
Slide 9: Consistent Progress in Strategic Branch Consolidation
Consistent Progress in Strategic Branch Consolidation Third significant branch consolidation since recap in 2013 Changing customer behaviors and recognizing operational efficiencies 11 branches identified for consolidation; approximately 20% of current branch network Most impacted branches located w
Slide 10: COVID-19 Response and PPP Program
COVID-19 Response and PPP Program Note: PPP Data as of September 21, 2020 Represents sectors with less than 5% of the PPP portfolio. Implemented a phased-in return to the workplace approach beginning June 29; 70- 80% WFH through end of year ~70% of all locations remain open with access to drive-up a
Slide 11: Loan and Lease Deferral Update – As of August 31, 2020
Loan and Lease Deferral Update – As of August 31, 2020 Outstanding Deferrals Deferrals by Industry Note: Data as of August 31, 2020. Represents sectors with less than 5% of the total portfolio. Excludes PPP loans. Deferral Origination Period # Outstanding Deferrals (%) March 2020 6.9% April 2020 43.
Slide 12: Select COVID-19 Industries
Select COVID-19 Industries ($ 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 N
Slide 13: Hotels, Restaurants, Amusement Portfolios
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 14: Religious/Non-Profit, Nursing Homes, Trucking Portfolios
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: $4.8 m
Slide 15: Second Quarter 2020 Financial Review
Second Quarter 2020 Financial Review
Slide 16: Second Quarter 2020 Summary
Second Quarter 2020 Summary Balance Sheet Solid Performance in a Challenging Environment Credit Management Allowance to loans of 1.17%, or 1.36% excluding PPP loans, compares with 1.08% in 1Q20 and 0.81% in 2Q19 NPLs/Total Loans and Leases of 99bps, or 91 bps excluding government guaranteed, down 32
Slide 17: Loan and Lease Trends
Loan and Lease Trends ($ 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 $610.9 million Growt
Slide 18: Government-Guaranteed Lending
Government-Guaranteed Lending ($ 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 19: 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 $74.9 million Non interest bearing increased to 35.7% of total deposits from 30.5% in 1
Slide 20: Net Interest Income and Net Interest Margin Trends
Net Interest Income and Net Interest Margin Trends ($ 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 21: Non-Interest Income Trends
Total Non-Interest Income Non-Interest Income Trends ($ in millions) Non-interest income increased $3.6 million from 1Q20 Higher net gains on sales of loans Decrease in loan servicing asset revaluation No securities sales during the quarter Volume Sold and Average Net Premiums Net Gains on Sales of
Slide 22: Non-Interest Expense Trends
Non-Interest Expense Trends ($ in millions) Non-interest expenses was $37.0 million, down from $43.5 million in 1Q20 Lower salaries and employee benefits due to $4.5 million in deferred costs related to PPP loan originations Decline in other non-interest expense due to a decrease in impairment charg
Slide 23: Asset Quality Trends
Asset Quality Trends ($ 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 24: 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 $63.4 million
Slide 25: Appendix
Appendix @ Byline Bancorp, Inc:
Slide 26: Select COVID-19 Industries: Loan and Lease Pool by Industry
Select COVID-19 Industries: Loan and Lease Pool by Industry ($ 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 27: 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 28: 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 $0.04 million Average Loan Yield excluding PPP 4.94% Deferred Loan
Slide 29: Key Transaction Highlights
Key Transaction Highlights Announced Pro Forma Financial Impact Expanded to Evanston market with #2 deposit market share in the city Provided low-cost core deposit base with 36% DDA Added strong commercial banking team Further diversified revenue with addition of Trust & Wealth Management business 1
Slide 30: Five Quarter Financial Summary
Five Quarter Financial Summary ($ in millions, except per share data) Represents a non-GAAP financial measure. See “Non-GAAP Reconciliation” in the appendix.
Slide 31: Non-GAAP Reconciliation
@ Byline Bancorp, Inc: Non-GAAP Reconciliation (dottasin thousands, pe share data) Met income and earnings per share excluding significant items Texbenefiton significant items ‘Adjusted et Income Reported Diluted Earnings perShare Signifcantitems Impairment charges on assets As of orForthe Tune 20,
Slide 32: Non-GAAP Reconciliation (continued)
Non-GAAP Reconciliation (continued)
Slide 33: Non-GAAP Reconciliation (continued)
Non-GAAP Reconciliation (continued)
Slide 34: Non-GAAP Reconciliation (continued)
Non-GAAP Reconciliation (continued)
Slide 35: Non-GAAP Reconciliation (continued)
Non-GAAP Reconciliation (continued)
Slide 36: Byline Bancorp, Inc.
By) Byline Bancorp, Inc.
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