Byline Bancorp, Inc. · NYSE:BY
Byline Bancorp — Investor Presentation (May 2021)
36 slides from Byline Bancorp's investor presentation, May 11, 2021
Slide 1: Investor Presentation – May 2021
Investor Presentation – May 2021 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 35% Suppl
Slide 4: A Leading Chicago Commercial Banking Franchise
A Leading Chicago Commercial Banking Franchise Financial Highlights ($mm) Size Loan & Deposit Profitability (4) 4 Source: Company Management and S&P Global Market Intelligence. All data and figures as of March 31, 2021, unless otherwise stated. Ratios annualized (recalculated as an annual rate) wher
Slide 5: The Byline Franchise
The Byline Franchise 5 Size Customer and Market Focus $5.0 billion in total deposits 46 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
Slide 6: Diversified product set: leasing, sponsor finance, wealth management
6 Size Customer and Market Focus $253.5 million lease portfolio Nationwide coverage Provides financing solutions for equipment vendors and their end-users Industries served: healthcare, manufacturing, technology, specialty vehicles, energy efficiency $351.0 million loan portfolio Lower middle market
Slide 7: Progress Report on Growth Strategies and Key Performance Indicators
Drive Organic Loan Growth Deliver Improved Profitability Strengthen Franchise through Acquisitions Top tier talent with local decision making Capitalize on market opportunities due to recent consolidation and the CRE concentration limitations of other banks Leverage infrastructure to keep expense gr
Slide 8: Adjusted Pre-Tax Pre-Provision Net Income and ROAA
Adjusted Pre-Tax Pre-Provision Net Income and ROAA(1) ($ in millions) 8 Adjusted PTPP Net Income and ROAA(1) returning to pre-COVID performance Improved performance driven by successful execution of our stated strategy Improving loan production Improving noninterest income Strong expense management
Slide 9: Consistent Progress in Strategic Branch Consolidation
Consistent Progress in Strategic Branch Consolidation ($ in millions) 9 11 branches consolidated at the end of 2020; approximately 20% of branch network Third significant branch consolidation since recap in 2013 Annualized estimated cost savings of $4.3 million ~25% of cost savings to be redeployed
Slide 10: 2021 Outlook and Strategic Priorities
10 2021 Outlook and Strategic Priorities Maintain Strong Capital, Liquidity and Reserves To Support Organic Growth Accelerate Loan Production as Economic Growth Continues Continue Investing in Technology to Improve Efficiencies and Enhance Revenue Generation M&A Opportunities with Attractive Metrics
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 Update
COVID-19 Response and PPP Update 12 A slow and balanced phased-in return to the workplace 70- 80% WFH through June 2021 All locations are now open with access to drive-up or lobby service 2nd round of PPP in process; primarily second draw PPP requests; average loan size of ~$137,000 and over $330 mi
Slide 13: Loan and Lease Deferral Update – As of March 31, 2021
Loan and Lease Deferral Update – As of March 31, 2021 Conventional Deferral Trend ($ in millions) Note: Data as of March 31, 2021. Due to rounding, amounts may not calculate precisely. Represents sectors with less than 5% of the total portfolio. Excludes PPP loans. Balance less than $50,000. Exclude
Slide 14: First Quarter 2021 Financial Review
First Quarter 2021 Financial Review
Slide 15: First Quarter 2021 Highlights
First Quarter 2021 Highlights Balance Sheet Growth Financial Performance Improving Credit Trends Strong Capital Represents a non-GAAP financial measure. See “Non-GAAP Reconciliation” in the appendix. Record net income of $21.8 million driven by balance sheet growth and improved operating leverage Pr
Slide 16: Loan and Lease Trends
Loan and Lease Trends ($ in millions) Originations and Payoffs(1) Portfolio by Segment Total Loans & Leases and Average Yield Total loans and leases were $4.5 billion at 1Q21, an increase of $114.1 million, primarily due to new PPP loan fundings Originated portfolio increased $181.0 million, or $81.
Slide 17: Government-Guaranteed Lending
Government-Guaranteed Lending ($ in millions) On Balance Sheet SBA 7(a) & USDA Loans Top 5 SBA 7(a) lender in the United States - #1 in Illinois & Wisconsin Servicing $1.6 billion in government guaranteed loans for investors ALLL/Unguaranteed loan balance ~ 8.9 % SBA program enhancements: Subsidy Pa
Slide 18: Deposit Trends
Total deposits increased $272.5 million to $5.03 billion Strong inflow of commercial non-interest bearing deposits Continued improvement in deposit mix with non-interest bearing deposits increasing to 40.1% of total deposits from 37.1% in 4Q20 Loans to deposits remains stable at 89.23% Commercial de
Slide 19: Net Interest Income and Net Interest Margin Trends
Net Interest Income and Net Interest Margin Trends ($ in millions) Net interest income was $56.6 million, up 1.1% from 4Q20 Net interest margin unchanged from 4Q20 at 3.77% Excluding accretion income, net interest margin increased 3 basis points from 4Q20 Average cost of deposits for month of March
Slide 20: Non-Interest Income Trends
Total Non-Interest Income Non-Interest Income Trends ($ in millions) Non-interest income decreased $2.0 million from 4Q20 Lower volume of loan and securities sales $1.5 million loan servicing asset revaluation charge Added $50.0 million of BOLI in March – 2.48% nominal yield Volume Sold and Average
Slide 21: Non-Interest Expense Trends
Non-Interest Expense Trends ($ in millions) Non-interest expense declined to $38.8 million from $47.0 million in 4Q20 Branch consolidation charges of $4.2 million in prior quarter Assets held for sale impairment charge of $604,000 compared to $4.0 million in prior quarter $2.8 million in deferred lo
Slide 22: Asset Quality Trends
Asset Quality Trends ($ in millions) Non-performing assets to total assets declined to 0.64% in 1Q21 from 0.74% in 4Q20 NPLs/ Total Loans & Leases decreased 12 bps to 0.83% in 1Q21 from 0.95% in 4Q20 NPLs/ Total Loans & Leases (excluding government guaranteed) decreased 10 bps to 0.76% in 1Q21 from
Slide 23: Strong Liquidity and Capital Position
Project Sox Offer Migration Strong Liquidity and Capital Position Liquidity Position and Funding Profile Strong Capital Base 23 Represents a non-GAAP financial measure. See “Non-GAAP Reconciliation” in the appendix. CET1 of 12.09% and Total Capital Ratio of 15.96% Excess CET1 capital above conservat
Slide 24: Appendix
Appendix (3) Byline Bancorp Ine:
Slide 25: Select COVID-19 Industries
Select COVID-19 Industries ($ in millions) Total loan and lease portfolio (excluding PPP) stood at $3.8 billion as of March 31, 2021; Aggregate exposure to select COVID-19 industries ~ 8.7% of portfolio Restaurants represent the largest exposures at $124.2 million or 3.2% of total loans and leases,
Slide 26: Hotels, Restaurants and Amusement Portfolio Characteristics
Hotels Portfolio Characteristics Balance: $42.0 million Conventional: $23.7 million Leasing: $647,000 SBA: $17.6 million Guaranteed: None Average loan: $538,000 Largest loan: $10.0 million Exposure: Deferral and SBA Subsidy $ of portfolio / % of portfolio Active Deferrals(1): $4.5 million / 11% Acti
Slide 27: Religious/Non-Profit, Nursing Homes, Trucking Portfolios
Religious/Non-Profit/Civic Portfolio Characteristics Balance: $34.5 million Conventional: $23.3 million Leasing: $1.4 million SBA: $9.8 million Guaranteed: None Average loan: $208,000 Largest loan: $4.7 million Exposure: Deferral and SBA Subsidy $ of portfolio / % of portfolio Active Deferrals(1): N
Slide 28: PPP Impact on 1Q21 Financials
PPP Impact on 1Q21 Financials 28
Slide 29: Projected Acquisition Accounting Accretion
Projected Acquisition Accounting Accretion Projected Accretion(1) ($ in millions) Accretion as a Percentage of Total Revenue 29 Projections are updated quarterly, assumes no prepayments and are subject to change.
Slide 30: 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. 30
Slide 31: Non-GAAP Reconciliation
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Slide 32: Non-GAAP Reconciliation (continued)
Non-GAAP Reconciliation (continued) 32
Slide 33: Non-GAAP Reconciliation (continued)
Non-GAAP Reconciliation (continued) 33
Slide 34: Non-GAAP Reconciliation (continued)
Non-GAAP Reconciliation (continued) 34
Slide 35: Non-GAAP Reconciliation (continued)
Non-GAAP Reconciliation (continued) 35
Slide 36: SAO
SAO = AON