Byline Bancorp, Inc. · NYSE:BY
Byline Bancorp — Investor Presentation (December 2020)
38 slides from Byline Bancorp's investor presentation, Dec 14, 2020
Slide 1: Investor Presentation – December 2020
Investor Presentation – December 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
A Leading Chicago Commercial Banking Franchise Financial Highlights ($mm) Size Loan & Deposit Profitability (4) Source: Company Management and S&P Global Market Intelligence. All data and figures as of September 30, 2020, unless otherwise stated. Ratios annualized (recalculated as an annual rate) wh
Slide 5: The Byline Franchise
The Byline Franchise Size Customer and Market Focus $4.8 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: Customer and Market Focus: Leasing, Sponsor Finance, Wealth
Size Customer and Market Focus $200.1 million lease portfolio Nationwide coverage Provides financing solutions for equipment vendors and their end-users Industries served: healthcare, manufacturing, technology, specialty vehicles, energy efficiency $307.1 million loan portfolio Lower middle market f
Slide 7: Progress Report on Growth Strategies and Key Performance Indicators
Drive Organic Loan Growth Deliver Improved Profitability Strengthen Franchise through Acquisitions Top tier talent with local decision making Capitalize on market opportunities due to recent consolidation and the CRE concentration limitations of other banks Leverage infrastructure to keep expense gr
Slide 8: Adjusted Pre-Tax Pre-Provision Net Income and ROAA
Adjusted Pre-Tax Pre-Provision Net Income and ROAA(1) ($ in millions) Adjusted Pre-Tax Pre-Provision Net Income and ROAA represent non-GAAP financial measures. See “Non-GAAP Reconciliation” in the appendix. Adjusted PTPP Net Income and ROAA(1) returning to pre-COVID performance Improved performance
Slide 9: Consistent Progress in Strategic Branch Consolidation
Consistent Progress in Strategic Branch Consolidation ($ in millions) Third significant branch consolidation since recap in 2013 11 branches identified for consolidation at the end of 2020; approximately 20% of current branch network Annualized estimated cost savings of $4.3 million ~25% of cost sav
Slide 10: Areas of Focus
Areas of Focus Support existing customer relationships and manage credit risk given the environment Drive organic loan growth and relationship banking strategy Maintain disciplined expense management Continue to invest in technology and the franchise Execute our strategy and capitalize on market opp
Slide 11: Positioned to Manage Through the COVID-19 Environment
Positioned to Manage Through the COVID-19 Environment
Slide 12: COVID-19 Response and PPP Program
COVID-19 Response and PPP Program Note: PPP Data as of September 30, 2020, PPP Forgiveness data as of December 9, 2020. Represents sectors with less than 5% of the PPP portfolio. A phased-in return to the workplace 70- 80% WFH through end of year ~70% of all locations remain open with access to driv
Slide 13: Loan and Lease Deferral Update
Loan and Lease Deferral Update (ex. Govt. Guaranteed) – As of Nov. 30, 2020 Active Second Deferrals by Industry Note: Data as of November 30, 2020 unless specified otherwise. Due to rounding, amounts may not calculate precisely. Represents sectors with less than 5% of the total portfolio. Excludes P
Slide 14: Select COVID-19 Industries
Select COVID-19 Industries ($ in millions) Total loan and lease portfolio (excluding PPP) stood at $3.8 billion as of September 30, 2020; Aggregate exposure to select COVID-19 industries ~ 9.9% of portfolio Restaurants represent the largest exposures at $133.9 million or 3.6% of total loans and leas
Slide 15: Hotels, Restaurants, Amusement Portfolio Characteristics
Hotels Portfolio Characteristics Balance: $47.3 million Conventional: $27.4 million Leasing: $507,000 SBA: $19.4 million Guaranteed: $86,000 Average loan: $570,000 Largest loan: $10.0 million Exposure: Deferral and SBA Subsidy $ of portfolio / % of portfolio Active Deferrals(1): None Active SBA subs
Slide 16: Religious, Nursing Homes, Trucking Portfolio Characteristics
Religious/Non-Profit/Civic Portfolio Characteristics Balance: $40.6 million Conventional: $28.4 million Leasing: $1.6 million SBA: $10.6 million Guaranteed: $545,000 Average loan: $180,000 Largest loan: $7.4 million Exposure: Deferral and SBA Subsidy $ of portfolio / % of portfolio Active Deferrals(
Slide 17: Third Quarter 2020 Financial Review
Third Quarter 2020 Financial Review
Slide 18: Third Quarter 2020 Summary
Third Quarter 2020 Summary Balance Sheet Significant Increase in PTPP(1) While Managing Through a Challenging Environment Credit Management Total loan deferrals declined to 0.8% of total loans and leases compared to 14.6% at 2Q20 NPLs and NPAs remain relatively stable at 0.99% and 0.79%, respectivel
Slide 19: 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 3Q20, comparable to the prior quarter Originated portfolio increased by $41.0 million Growth in commercial loans
Slide 20: Government-Guaranteed Lending
Government-Guaranteed Lending ($ in millions) On Balance Sheet SBA 7(a) & USDA Loans #2 SBA 7(a) lender in the United States #1 SBA lender in Illinois and Wisconsin; #3 SBA lender in Indiana Servicing $2.1 billion in government guaranteed loans Under the CARES Act, SBA 7(a) loans fully disbursed by
Slide 21: Deposit Trends
Total deposits decreased $148.2 million to $4.8 billion Some outflow due to seasonal impact of tax payments Continued run-off of higher cost deposits Continued improvement in deposit mix with time deposits declining to 16.8% of total deposits from 18.7% in 2Q20 Total deposit costs decreased 14 basis
Slide 22: Net Interest Income and Net Interest Margin Trends
Net Interest Income and Net Interest Margin Trends ($ in millions) Net interest margin decreased 11 basis points to 3.60% from 2Q20 Excluding accretion income, net interest margin declined 15 basis points from 2Q20 Decline in earning asset yields due continued loan repricing, full quarter impact of
Slide 23: Non-Interest Income Trends
Total Non-Interest Income Non-Interest Income Trends ($ in millions) Non-interest income increased $9.5 million from 2Q20 Higher net gains on sales of loans Increase in loan servicing asset revaluation Increase in customer activity driving higher bank fees $1.0 million in net gains on securities sal
Slide 24: Non-Interest Expense Trends
Non-Interest Expense Trends ($ in millions) Non-interest expenses was $41.7 million, up from $37.0 million in 2Q20 Higher salaries and employee benefits due to deferred costs related to PPP loan originations in prior quarter $696,000 in charges related to planned branch consolidation recognized in 3
Slide 25: Asset Quality Trends
Asset Quality Trends ($ in millions) Non-performing assets to total assets remained stable at 0.79% NPLs/ Total Loans & Leases increased by 7 bps to 0.99% in 3Q20 from 0.92% in 2Q20 NPLs/ Total Loans & Leases (excluding government guaranteed) increased to 0.90% in 3Q20 from 0.84% in 2Q20 Other real
Slide 26: Strong Liquidity and Capital Position
Project Sox Offer Migration Strong Liquidity and Capital Position Liquidity Position and Funding Profile Strong Capital Base Access to $2.6 billion of liquidity available Loan / Deposit ratio of 91.96% $87.5 million of cash at the holding company at 3Q20 CET1 of 12.55% and Total Capital Ratio of 16.
Slide 27: Appendix
Appendix @ Byline Bancorp, Inc:
Slide 28: Select COVID-19 Industries: Loan and Lease Pool by Industry
Select COVID-19 Industries: Loan and Lease Pool by Industry ($ in thousands) Note: Data as of September 30, 2020.
Slide 29: 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
Slide 30: PPP Impact on 3Q20 Financials
PPP Impact on 3Q20 Financials At or for the Three Months Ended 9/30/20 Gross PPP Loans $635.4 million Average PPP Loans, net $619.0 million Average Borrowings Under PPPLF $449.7 million PPP Interest and Processing Fee Income $3.5 million PPPLF Interest Expense $0.4 million Average Loan Yield excludi
Slide 31: Key Transaction Highlights
Key Transaction Highlights Announced Pro Forma Financial Impact Expanded to Evanston market with #2 deposit market share in the city Provided low-cost core deposit base with 36% DDA Added strong commercial banking team Further diversified revenue with addition of Trust & Wealth Management business 1
Slide 32: Five Quarter Financial Summary
Five Quarter Financial Summary ($ in millions, except per share data) Represents a non-GAAP financial measure. See “Non-GAAP Reconciliation” in the appendix.
Slide 33: Non-GAAP Reconciliation
@ Byline Bancorp, Inc: Non-GAAP Reconciliation As of orForthe ‘September30, June 20, March 34, December3t, “September 0, (Coltarsin thousands, pershare data) Pee 2020 3 Net income los andearningsper share excluding significant Reported Net Income (Loz) 5 aon § sass 2868S 15882 $ 15342 Sigifcantitems
Slide 34: Non-GAAP Reconciliation (continued)
Non-GAAP Reconciliation (continued)
Slide 35: Non-GAAP Reconciliation (continued)
Non-GAAP Reconciliation (continued)
Slide 36: Non-GAAP Reconciliation (continued)
Non-GAAP Reconciliation (continued)
Slide 37: Non-GAAP Reconciliation (continued)
Non-GAAP Reconciliation (continued)
Slide 38: Byline Bancorp, Inc.
By) Byline Bancorp, Inc.
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