Byline Bancorp, Inc. · NYSE:BY
Byline Bancorp — Merger or Acquisition (November 2018)
25 slides from Byline Bancorp's merger presentation, Nov 6, 2018
Slide 1: Investor Presentation – November 2018
Investor Presentation – November 2018 Filed by Byline Bancorp, Inc. Pursuant to Rule 425 of the Securities Act of 1933 and deemed filed pursuant to Rule 14a-12 of the Securities Exchange Act of 1934 Subject Company: Byline Bancorp, Inc. (Commission File No.: 001-38139)
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: Franchise Highlights
Transparent & Executable Growth Strategy The Bank Chicago Deserves Seasoned Management Team & Board of Directors Diversified Commercial Lending Platform Disciplined Credit Risk Management Framework Deposits, Deposits, Deposits Franchise Highlights 1 2 3 4 5 6
Slide 4: A Leading Chicago Commercial Franchise
Total Assets $4,917 Total Loans & Leases $3,456 Total Deposits $3,741 Total Equity $630 Tangible Common Equity(2) $457 Loans & Leases / Deposits Ratio 93% Commercial Loans / Total Loans(3) 59% Non-interest Bearing Deposits / Total Deposits 31% Adjusted Return on Average Assets(2) 1.23% Net Interest
Slide 5: The Byline Franchise
The Byline Franchise Retail Banking Commercial Banking Small Business Capital Small Ticket Equipment Leasing Diversified product set with abilities to scale business lines both in-market and nationwide Size Customer and Market Focus $3.7 billion in total deposits 59 branch locations Serves small bus
Slide 6: Growth Strategy: Organic Growth, Profitability, Acquisitions
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 7: Third Quarter 2018 Results
Third Quarter 2018 Results @ Byline Bancorp, Inc-
Slide 8: 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 $103.4, up 3.1% on a linked quarter basis and 12.3% annualized Solid loan demand during the quarter, particularly in CRE a
Slide 9: Loan and Lease Trends
Loan and Lease Trends Loan & Lease Portfolio September 30, 2017 September 30, 2018 ($ 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 10: 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 11: 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 12: 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 13: 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 14: 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 15: Acquisition of Oak Park River Forest Bankshares, Inc.
Acquisition of Oak Park River Forest Bankshares, Inc. Strategically enhancing our deposit franchise
Slide 16: 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 17: Overview of Community Bank of Oak Park River Forest
Source: SNL Financial; Financial data presented at and for the three months ended 9/30/2018 Per bank-level regulatory filings as of 9/30/2018 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 18: 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 19: Pro Forma Loan and Deposit Composition
Source: SNL Financial Note: Loans and deposits per regulatory filings as of 9/30/2018 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: $3,465mm Yield on Loans: 6.45% Gr
Slide 20: Overview of Transaction & Key Assumptions
Note: Financial information shown as of 6/30/2018, per investor presentation filing at announcement Based on BY’s closing price of $21.30 as of 10/17/2018 Based on BY’s closing price of $21.30 as of 10/17/2018; calculation of aggregate transaction value includes in-the-money options Calculated on a
Slide 21: Appendix
Appendix @ Byline Bancorp, Inc-
Slide 22: Five Quarter Financial Summary
Five Quarter Financial Summary ($ in millions, except per share data) Represents a non-GAAP financial measure. See “Non-GAAP Reconciliation” in the appendix.
Slide 23: Non-GAAP Reconciliation
@ Byline Bancorp Inc: Non-GAAP Reconciliation Avetortortne Tre Mont Ended Teptember’0, Tune 30, Decembersi, tember’0, tants excep re ander share darts sow poe vais, where applicable) Reported netinterest margin aK 45%, 420% 48% Ltfectofaccretionincome on acquired loans o.7ay% (ost. (03076 (0.299% Ne
Slide 24: Non-GAAP Reconciliation (continued)
Non-GAAP Reconciliation (continued)
Slide 25: Non-GAAP Reconciliation (continued)
Non-GAAP Reconciliation (continued)
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