Byline Bancorp, Inc. · NYSE:BY
Byline Bancorp — Q4 2019 Earnings Presentation
25 slides from Byline Bancorp's earnings presentation, Feb 26, 2020
Slide 1: Investor Presentation – February 2020
Investor Presentation – February 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 Insider Ownership of 37.26% Supplement Gro
Slide 4: A Leading Chicago Commercial Banking Franchise
Total Assets $5,522 Total Loans & Leases $3,786 Total Deposits $4,148 Total Equity $750 Tangible Common Equity(1) $559 Loans & Leases / Deposits Ratio 92% Commercial Loans / Total Loans(2) 62% Non-interest Bearing Deposits / Total Deposits 31% Adjusted Return on Average Assets(1) 1.17% Net Interest
Slide 5: The Byline Franchise
The Byline Franchise Commercial Banking Wealth Management Size Customer and Market Focus $4.1 billion in total deposits 57 branch locations⁽¹⁾ Serves small businesses and consumers within branch footprint Offers traditional retail deposit products through branch network and online and mobile banking
Slide 6: Specialty Lending Businesses
Specialty Lending Businesses Small Ticket Equipment Leasing Sponsor Finance Size Customer and Market Focus $607.4 million loan portfolio $1.5 billion servicing portfolio Top five lender in the U.S., #1 in Illinois and Wisconsin Selected as the Illinois SBA 7(a) Lender of the Year during 2018 Dedicat
Slide 7: Progress Report on Growth Strategies
Drive Organic Loan Growth Deliver Improved Profitability Strengthen Franchise through Acquisitions Continue to bring in top tier talent with teams attracted to culture and local decision making Capitalize on market opportunities due to recent consolidation and the CRE concentration limitations of ot
Slide 8: Strengthening the Byline Franchise through Accretive Transactions
Strengthening the Byline Franchise through Accretive Transactions Key Highlights Closed May 31, 2018 Pricing: 1.7x TCE / 9.1% core deposit premium Expanded Byline’s franchise to Evanston market with #2 deposit market share in the city Provided low-cost core deposit base with 36% DDA Added strong com
Slide 9: 2020 Outlook and Strategic Priorities
2020 Outlook and Strategic Priorities Areas of Focus Capital Actions: Strategic and Financial Continue executing commercial banking strategy Disciplined expense management to gain operating leverage Maintain credit and underwriting discipline Achieve loan and core deposit growth Support organic bala
Slide 10: Fourth Quarter 2019 Results
Fourth Quarter 2019 Results @ Byline Bancorp, Inc:
Slide 11: Fourth Quarter 2019 Highlights
Fourth Quarter 2019 Highlights Balance Sheet Earnings Revenue Key Operating Trends Total revenue of $68.4 million, a decrease of 5.8% from 3Q19 and an increase of 1.3% from 4Q18 Net interest income decreased 6.8% from 3Q19 reflecting lower margin given lower rate environment Non interest income was
Slide 12: Loan and Lease Trends
Loan and Lease Trends Loan & Lease Originations and Payoffs December 31, 2018 December 31, 2019 ($ in millions) Originated and Acquired Loan & Lease Portfolio Total loans and leases were $3.8 billion at 4Q19, a decrease of $45.4 million from the prior quarter, but up 8.1% from 4Q18 Originated portfo
Slide 13: Government-Guaranteed Lending
Government-Guaranteed Lending Managed SBA 7A and USDA Loans Top 5 SBA lender nationally; #1 lender in Illinois and Wisconsin $131.9 million in closed loan commitments in 4Q19, compared to $125.1 million in 3Q19 Managed U.S. government guaranteed portfolio increased $28 million to $1.9 billion as of
Slide 14: Deposit Trends
Total deposits increased $67.3 million to $4.1 billion Growth entirely attributable to increases in lower-cost deposit categories Average non-interest bearing deposits increased $65.4 million Total deposit costs decreased six basis points from prior quarter Loan to deposit ratio declined to 91.56% f
Slide 15: Net Interest Income and Net Interest Margin Trends
Net Interest Income and Net Interest Margin Trends Net Interest Income decreased $3.9 million to $53.9 million, due to lower accretion and lower interest rates partially offset by lower funding costs Net interest margin decreased 30 basis points to 4.32% from 3Q19 Loan yields were impacted by accret
Slide 16: Non-Interest Income Trends
Total Non-Interest Income Non-Interest Income Trends Non-interest income decreased $290,000 from 3Q19 Decrease in fair value of servicing asset due to higher prepayment speeds and discount rates Lower net gains on sales of loans Partially offset by higher swap-related income ($ in millions) Average
Slide 17: Non-Interest Expense Trends
Non-Interest Expense Trends Non-interest expenses, excluding significant items(1), was $43.4 million, down from $44.3 million in 3Q19 Decrease in professional fees as prior quarter reflected non-recurring costs Increase in loan expenses on government guaranteed loans Adjusted efficiency ratio(1) of
Slide 18: Asset Quality Trends
Asset Quality Trends Non-performing assets to total assets declined to 0.87% in 4Q19 from 0.89% in 3Q19 NPLs/ Total Loans & Leases declined by 9 bps to 1.00% in 4Q19 from 1.09% in 3Q19 NPLs/ Total Loans & Leases (excluding government guaranteed) decreased to 0.89% in 4Q19 from 0.98% in 3Q19 Other re
Slide 19: Appendix
Appendix @ Byline Bancorp, Inc:
Slide 20: Five Quarter Financial Summary
Five Quarter Financial Summary ($ in millions, except per share data) Represents a non-GAAP financial measure. See “Non-GAAP Reconciliation” in the appendix. For the Three Months Ended, December 31, 2019 September 30, 2019 June 30, 2019 March 31, 2019 December 31, 2018 Income Statement Net interest
Slide 21: Non-GAAP Reconciliation
Non-GAAP Reconciliation December 31, September 30, June 30, March 31, December 31, $ in thousands, except per share data) 2019 2019 2019 2019 2018 Net income and earnings per share excluding significant items Reported Net Income 15,852 $ 15,342 $ 13,211 $ 12,597 $ 17,121 $ Significant items: Impairm
Slide 22: Non-GAAP Reconciliation (continued)
Non-GAAP Reconciliation (continued)
Slide 23: Non-GAAP Reconciliation (continued)
Non-GAAP Reconciliation (continued) (dollars in thousands, except per share data, ratios annualized, where applicable) December 31, 2019 September 30, 2019 June 30, 2019 March 31, 2019 December 31, 2018 Tangible assets: Total assets 5,521,809 $ 5,438,278 $ 5,391,236 $ 5,009,925 $ 4,942,574 $ Less: G
Slide 24: Non-GAAP Reconciliation (continued)
Non-GAAP Reconciliation (continued)
Slide 25: Non-GAAP Reconciliation (continued)
Non-GAAP Reconciliation (continued)