Byline Bancorp, Inc. · NYSE:BY
Byline Bancorp — Q1 2020 Earnings Presentation
29 slides from Byline Bancorp's earnings presentation, May 1, 2020
Slide 1: Q1 2020 Conference Call
Q1 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: First Quarter 2020 Summary
First Quarter 2020 Summary Balance Sheet Earnings Revenue Key Operating Trends 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 prin
Slide 4: Impact and Response to COVID-19
Impact and Response to COVID-19 Represents increase from 12/31/19 to 3/31/20. 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 t
Slide 5: 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 3.3% Over 3,500 Application
Slide 6: Positioned to Manage Through the COVID-19 Environment
Positioned to Manage Through the COVID-19 Environment
Slide 7: Strong Liquidity Profile with Excess Capital Position
Project Sox Offer Migration Strong Liquidity Profile with Excess Capital Position Liquidity Position Strong Capital Base Loan growth funded through core deposits Access to $2.0 billion of liquidity available from FHLB Chicago, Fed Funds lines, unencumbered securities and the Discount Window Loan / D
Slide 8: Loan Portfolio Overview
Project Sox Offer Migration Loan Portfolio Overview Commercial LOC Exposure ($ in millions) Loans by Rate Type CRE & Commercial Loans by Industry Type Implemented credit focused risk management approach to manage $3.7 billion loan portfolio on a real-time basis Refreshed and analyzed capital stress
Slide 9: Early Impact Industries Sensitive to COVID-19
Early Impact Industries Sensitive to COVID-19 ($ 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 $125.2 million or 3.4% of total loans Hotel Concentration i
Slide 10: We are a Top Government-Guaranteed Lender
We are a Top Government-Guaranteed Lender ($ 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 11: 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 $810.2 million CDs maturing in 2020 at an average rate of 1.66% PPP loans to add estimated loan fee income of 3.3% deferred over the life of the
Slide 12: Areas of Focus
Actively protect the safety and financial health of our employees, customers and communities During the crisis and beyond, work diligently with customers to understand its impact on their business and help them manage it in a constructive fashion Operate our business with the utmost focus on safety
Slide 13: First Quarter 2020 Financial Review
First Quarter 2020 Financial Review
Slide 14: Loan and Lease Trends
Loan and Lease Trends ($ 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 15: 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 $222.9 million Total deposit costs decreased 13 basis point
Slide 16: Net Interest Income and Net Interest Margin Trends
Net Interest Income and Net Interest Margin Trends ($ in millions) Net Interest Income decreased $1.1 million to $52.8 million, primarily due to lower accretion income, partially offset by a decline in interest expense Net interest margin decreased 15 basis points to 4.17% from 4Q19 Excluding accret
Slide 17: Non-Interest Income Trends
Total Non-Interest Income Non-Interest Income Trends ($ in millions) Non-interest income decreased $5.3 million from 4Q19 Lower net gains on sales of loans Unfavorable change in fair value of servicing asset due to market slowdown resulting from COVID-19 Lower swap-related income Volume Sold and Ave
Slide 18: Non-Interest Expense Trends
Non-Interest Expense Trends ($ in millions) Non-interest expenses, excluding significant adjustment items(1), was $42.8 million, down from $43.4 million in 4Q19 Higher salaries and employee benefits due to higher payroll taxes and increased employer costs related to benefits, partially offset by a d
Slide 19: Asset Quality Trends
Asset Quality Trends ($ 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 20: Appendix
Appendix @ Byline Bancorp, Inc:
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 (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 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: Early Impact Industries: Loan Pool by Industry
27 Early Impact Industries: Loan Pool by Industry ($ in thousands) Note: Data as of March 31, 2020; excludes Lease Financing Receivables.
Slide 28: 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 29: Slide 29