Byline Bancorp, Inc. · NYSE:BY
Byline Bancorp — Q3 2020 Earnings Presentation
29 slides from Byline Bancorp's earnings presentation, Oct 23, 2020
Slide 1: Q3 2020 Conference Call
Q3 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: 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 4: 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 $4.3 million ~25% of cost sav
Slide 5: COVID-19 Response and PPP Program
COVID-19 Response and PPP Program Note: PPP Data as of September 30, 2020, PPP Forgiveness data as of October 20, 2020 Represents sectors with less than 5% of the PPP portfolio. A phased-in return to the workplace 70- 80% WFH through end of year ~70% of all locations remain open with access to drive
Slide 6: Loan and Lease Deferral Update – As of September 30, 2020
Loan and Lease Deferral Update – As of September 30, 2020 Active Second Deferrals by Industry Note: Data as of September 30, 2020. Due to rounding, amounts may not calculate precisely. Represents sectors with less than 5% of the total portfolio. Excludes PPP loans. Excludes SBA 7(a) loans that have
Slide 7: Select COVID-19 Industries
Select COVID-19 Industries ($ 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 8: Hotels, Restaurants and 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 9: Religious/Non-Profit, 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 10: 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 $41.0 million Growth in commercial loans
Slide 11: Government-Guaranteed Lending
Government-Guaranteed Lending ($ 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 12: Deposit Trends
Total deposits decreased $148.2 million to $4.8 billion Some outflow due to seasonal impact of tax payments Continued run-off of higher cost deposits Continued improvement in deposit mix with time deposits declining to 16.8% of total deposits from 18.7% in 2Q20 Total deposit costs decreased 14 basis
Slide 13: Net Interest Income and Net Interest Margin Trends
Net Interest Income and Net Interest Margin Trends ($ 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 14: 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 $1.0 million in net gains on securities sal
Slide 15: Non-Interest Expense Trends
Non-Interest Expense Trends ($ 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 $696,000 in charges related to planned branch consolidation recognized in 3
Slide 16: Asset Quality Trends
Asset Quality Trends ($ in millions) Non-performing assets to total assets remained stable at 0.83% 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 17: 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% $87.5 million of cash at the holding company at 3Q20 CET1 of 12.55% and Total Capital Ratio of 16.
Slide 18: Areas of Focus
Areas of Focus Support existing customer relationships and manage credit risk given the environment Drive organic loan growth and relationship banking strategy Maintain disciplined expense management Continue to invest in technology and the franchise Execute our strategy and capitalize on market opp
Slide 19: Appendix
Appendix @ Byline Bancorp, Inc:
Slide 20: Select COVID-19 Industries: Loan and Lease Pool by Industry
Select COVID-19 Industries: Loan and Lease Pool by Industry ($ in thousands) Note: Data as of September 30, 2020.
Slide 21: 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 22: 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 $0.4 million Average Loan Yield excludi
Slide 23: Five Quarter Financial Summary
Five Quarter Financial Summary ($ in millions, except per share data) Represents a non-GAAP financial measure. See “Non-GAAP Reconciliation” in the appendix.
Slide 24: Non-GAAP Reconciliation
@ Byline Bancorp, Inc: Non-GAAP Reconciliation (Coltarsin thousands, pershare data) Net income los andearningsper share excluding significant Reported Net Income (Loz) Sigifcantitems: Impaimentchargeson assets ‘Taxbenetiton sigifcantitems justed Net Income Reported Diluted Eamings (Lox) per Share As
Slide 25: Non-GAAP Reconciliation (continued)
Non-GAAP Reconciliation (continued)
Slide 26: Non-GAAP Reconciliation (continued)
Non-GAAP Reconciliation (continued)
Slide 27: Non-GAAP Reconciliation (continued)
Non-GAAP Reconciliation (continued)
Slide 28: Non-GAAP Reconciliation (continued)
Non-GAAP Reconciliation (continued)
Slide 29: Byline Bancorp, Inc.
By) Byline Bancorp, Inc.