Byline Bancorp, Inc. · NYSE:BY
Byline Bancorp — Q4 2020 Earnings Presentation
29 slides from Byline Bancorp's earnings presentation, Jan 29, 2021
Slide 1: Q4 2020 Conference Call
Q4 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: Full Year 2020 Summary
Full Year 2020 Summary Strong Core Earnings Power Response to Pandemic Record Year for Small Business Capital Top 5 SBA 7(a) lender in the United States #1 SBA lender in Illinois and Wisconsin More than $450 million of government guaranteed loan production Net gain on sales of loans of $33.3 million
Slide 4: Fourth Quarter 2020 Summary
Fourth Quarter 2020 Summary Balance Sheet Earnings Credit Management Healthy trends in conventional loan portfolio with NPAs declining $2.7 million from 3Q20 Increase in total SBA loan deferrals driven by loans requiring additional support following expiration of subsidy Continued reserve build with
Slide 5: COVID-19 Response and PPP Program
COVID-19 Response and PPP Program 5 Note: PPP Data as of December 31, 2020. (1) PPP data as of January 26, 2021 A phased-in return to the workplace 70- 80% WFH through June 2021 All locations are now open with access to drive-up or lobby appointment service Funded over $635 million of PPP loans duri
Slide 6: Loan and Lease Deferral Update – As of December 31, 2020
Loan and Lease Deferral Update – As of December 31, 2020 Conventional Deferrals by Industry Note: Data as of December 31, 2020. Due to rounding, amounts may not calculate precisely. Represents sectors with less than 5% of the total portfolio. Excludes PPP loans. Excludes SBA 7(a) loans that are curr
Slide 7: Select COVID-19 Industries
Select COVID-19 Industries ($ in millions) Total loan and lease portfolio (excluding PPP) stood at $3.8 billion as of December 31, 2020; Aggregate exposure to select COVID-19 industries ~ 9.3% of portfolio Restaurants represent the largest exposures at $128.3 million or 3.4% of total loans and lease
Slide 8: Loan and Lease Trends
Loan and Lease Trends ($ in millions) Loan & Lease Originations and Payoffs(1) Loans by Segment Originated and Acquired Loan & Lease Portfolio Total loans and leases were $4.3 billion at 4Q20, down slightly from prior quarter due to PPP forgiveness Originated portfolio increased $31.9 million or $13
Slide 9: Government-Guaranteed Lending
Government-Guaranteed Lending ($ in millions) On Balance Sheet SBA 7(a) & USDA Loans Top 5 SBA 7(a) lender in the United States #1 SBA lender in Illinois and Wisconsin Servicing $2.2 billion in government guaranteed loans ALLL/Unguaranteed loan balance ~8.6% SBA program enhancements on the latest re
Slide 10: Deposit Trends
Total deposits decreased $58.2 million to $4.8 billion Seasonal outflow of mostly public funds Strong inflow of noninterest bearing deposits Continued improvement in deposit mix with noninterest bearing deposits increasing to 37.1% of total deposits from 35.7% in 3Q20 Total deposit costs decreased 7
Slide 11: Net Interest Income and Net Interest Margin Trends
Net Interest Income and Net Interest Margin Trends ($ in millions) Net interest income was $56.0 million, up 4.7% from 3Q20 Net interest margin increased 17 basis points to 3.77% from 3Q20 Excluding accretion income, net interest margin increased 27 basis points from 3Q20 Accelerated recognition of
Slide 12: Total Non-Interest Income
Total Non-Interest Income Non-Interest Income Trends ($ in millions) Non-interest income decreased $4.5 million from 3Q20 Lower net gains on sales of loans $2.3 million loan servicing asset revaluation charge $3.1 million in net gains on securities sales Volume Sold and Average Net Premiums Net Gain
Slide 13: Non-Interest Expense Trends
Non-Interest Expense Trends ($ in millions) Non-interest expense was $44.2 million, up from $41.7 million in 3Q20 $4.2 million in charges related to branch consolidation $4.0 million impairment charge on assets held for sale Decline in professional fees due to lower legal expenses Decrease in loan r
Slide 14: Asset Quality Trends
Asset Quality Trends ($ in millions) Non-performing assets to total assets declined to 0.74% in 4Q20 from 0.79% in 3Q20 NPLs/ Total Loans & Leases decreased 4 bps to 0.95% in 4Q20 from 0.99% in 3Q20 NPLs/ Total Loans & Leases (excluding government guaranteed) decreased 4 bps to 0.86% in 4Q20 from 0.
Slide 15: 2021 Outlook and Strategic Priorities
2021 Outlook and Strategic Priorities 15 Maintain Strong Capital, Liquidity and Reserves To Manage Continued Uncertainty Continue Supporting Clients and Managing Credit Risk Accelerate Loan Production as Economic Conditions Improve Realize Improved Operating Leverage Following Recent Branch Consolid
Slide 16: Appendix
Appendix @ Byline Bancorp Inc.
Slide 17: Hotels, Restaurants, Amusement Portfolio Characteristics
Hotels Portfolio Characteristics Balance: $46.0 million Conventional: $27.3 million Leasing: $603,000 SBA: $18.1 million Guaranteed: None Average loan: $575,000 Largest loan: $10.0 million Exposure: Deferral and SBA Subsidy $ of portfolio / % of portfolio Active Deferrals(1): $8.4 million / 18% Acti
Slide 18: Religious/Non-Profit, Nursing Homes, Trucking Portfolio Characteristics
Religious/Non-Profit/Civic Portfolio Characteristics Balance: $37.2 million Conventional: $24.8 million Leasing: $1.5 million SBA: $10.8 million Guaranteed: $754,000 Average loan: $201,000 Largest loan: $5.6 million Exposure: Deferral and SBA Subsidy $ of portfolio / % of portfolio Active Deferrals(
Slide 19: 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 December 31, 2020. 19
Slide 20: Strong Liquidity and Capital Position
Project Sox Offer Migration Strong Liquidity and Capital Position Liquidity Position and Funding Profile Strong Capital Base Access to $2.5 billion of liquidity available Loan / Deposit ratio of 91.51% $82.8 million of cash at the holding company at 4Q20 CET1 of 12.20% and Total Capital Ratio of 16.
Slide 21: Projected Acquisition Accounting Accretion
Projected Acquisition Accounting Accretion Projected Accretion(1) ($ in millions) (1) Projections are updated quarterly, assumes no prepayments and are subject to change. Accretion as a Percentage of Total Revenue 21
Slide 22: PPP Impact on 4Q20 Financials
PPP Impact on 4Q20 Financials 22
Slide 23: 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. 23
Slide 24: Non-GAAP Reconciliation
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Slide 25: Non-GAAP Reconciliation (continued)
Non-GAAP Reconciliation (continued) 25
Slide 26: Non-GAAP Reconciliation (continued)
Non-GAAP Reconciliation (continued) 26
Slide 27: Non-GAAP Reconciliation (continued)
Non-GAAP Reconciliation (continued) 27
Slide 28: Non-GAAP Reconciliation (continued)
Non-GAAP Reconciliation (continued) 28
Slide 29: Byline Bancorp, Inc.