Byline Bancorp : Investor Presentation - September 2020

Investor Presentation - September 2020

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 anticipated future performance of the Company. These statements are often, but not always, made through the use of words or phrases such as ''may'', ''might'', ''should'', ''could'', ''predict'', ''potential'', ''believe'', ''expect'', ''continue'', ''will'', ''anticipate'', ''seek'', ''estimate'', ''intend'', ''plan'', ''projection'', ''would'', ''annualized'', "target" and ''outlook'', or the negative version of those words or other comparable words or phrases of a future or forward-looking nature. Forward-looking statements involve estimates and known and unknown risks, and reflect various assumptions and involve elements of subjective judgement and analysis, which may or may not prove to be correct, and which are subject to uncertainties and contingencies outside the control of Byline and its respective affiliates, directors, employees and other representatives, which could cause actual results to differ materially from those presented in this communication.

The COVID-19 pandemic is adversely affecting us, our employees, customers, counterparties and third-party service providers, and the ultimate extent of the impacts on our business, financial position, results of operations, liquidity, and prospects is uncertain. Continued deterioration in general business and economic conditions, including further increases in unemployment rates, or turbulence in U.S. or global financial markets could adversely affect our revenues and the values of our assets and liabilities, reduce the availability of funding, lead to a tightening of credit, and further increase stock price volatility. In addition, changes to statutes, regulations, or regulatory policies or practices as a result of, or in response to COVID-19, could affect us in substantial and unpredictable ways.

No representations, warranties or guarantees are or will be made by Byline as to the reliability, accuracy or completeness of any forward-looking statements contained in this communication or that such forward-looking statements are or will remain based on reasonable assumptions. You should not place undue reliance on any forward-looking statements contained in this communication.

Certain risks and important factors that could affect Byline's future results are identified in its Annual Report on Form 10-K and other reports filed with the Securities and Exchange Commission, including under the heading "Risk Factors" in such Annual Report on Form 10-K as well as in Byline's Quarterly Report on Form 10-Q for the quarter ended June 30, 2020 . Any forward-looking statement speaks only as of the date on which it is made, and Byline undertakes no obligation to update any forward-looking statement, whether to reflect events or circumstances after the date on which the statement is made, to reflect new information or the occurrence of unanticipated events, or otherwise unless required under the federal securities laws.

2

The Byline Difference

1

A LEADING COMMERCIAL BANKING FRANCHISE

• 57 full service branch locations
• #2 SBA lender in the United States
• #1 Lender in Illinois and Wisconsin
• The only Publicly
  Traded Bank in Chicago from $5b - $17b in assets

4

DIVERSIFIED COMMERCIAL LENDING PLATFORM

($mm)				Leases 4%	70% Commercial
					$3,596
$2,771	$2,836	$2,985			Owner
							Occ.		C&I
							CRE
$1,060	$950	$876	$796		20%	32%
			Non-Owner
						Occ. CRE
						11%			PPP
		Q3 2019	Q4 2019	Q1 2020	Q2 2020	C&D		14%
		1-4
						6%
		Total Originated Loans and Leases	Family		Multifamily 6%
			9%

Total Acquired Loans and Leases

• Growth driven primarily by Commercial Banking
• Experienced lenders coupled with local decision making

2 SEASONED MANAGEMENT TEAM & BOARD OF DIRECTORS

• 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%

Average	Management	Board of Directors
Years in	25	37
Banking

5

TRANSPARENT & EXECUTABLE GROWTH STRATEGY

1. Capitalize and grow strong deposit franchise
2. • Quality deposit franchise and stable funding
   • Small businesses represent low cost source of deposits
3. Drive Organic Loan Growth
4. • Relationship banking orientation
   • Successfully attracting experienced bankers
   • Capitalize on SMB market opportunity
5. Supplement Growth through Acquisitions
6. • Small bank market remains fragmented
   • Focus on targets with assets between $250mm and $2b in the Chicago and Milwaukee MSAs

3			DEPOSITS, DEPOSITS, DEPOSITS
	Current Mix ($5.0bn)	Cost of Deposits (%)
Time >
$250k			0.94	0.88
	4%	Time		0.75
		< $250k	Non
		10%
		Interest			0.36
			Bearing
	MMDA &	36%
	Savings
		36%	NOW	Q3 2019 Q4 2019 Q1 2020 Q2 2020
			10%
 Core deposits represent 88.7%
	$87.0mm deposits per branch for 2Q20

6

STRONG LIQUIDITY PROFILE AND CAPITAL

• Strong liquidity position with $2.7 billion in available liquidity from various funding sources
• Loan / Deposit ratio of 88.62%

Byline Q2 2020 Capital Position

12.3%	13.6%	15.9%

CET1

Tier 1

Total RBC

Source: Company Management and S&P Global Market Intelligence.	3
Note: All data and figures as of June 30, 2020, unless otherwise stated.

A Leading Chicago Commercial Banking Franchise

Company Overview

Branch Franchise

• Full service commercially-oriented community bank serving business and retail customers in the Chicago metropolitan area
• $207 million recapitalization during 2013, the largest recap in Chicago in 25 years

Financial Highlights ($mm)

Size

Loan & Profitability Deposit

	Total Assets	$6,394
	Total Loans & Leases	$4,391
	Total Deposits	$4,958
	Total Equity	$781
	Tangible Common Equity(1)	$594
	Loans & Leases / Deposits Ratio	88.62%
	Commercial Loans / Total Loans(2)	65.37%
	Non-interest Bearing Deposits / Total Deposits	35.67%
	Adjusted Return on Average Assets(1)	0.59%
	Pre-taxPre-provision Return on Average Assets(1)	1.85%
	Net Interest Margin	3.71%
	Adjusted Efficiency Ratio(1) (3)	53.70%
	Non-interest Income / Total Revenue(1)	19.56%

Source: Company Management and S&P Global Market Intelligence. All data and figures as of June 30, 2020, unless otherwise stated. Ratios annualized (recalculated as an annual rate) where applicable.

1. Considered a non-GAAP financial measure. See "Non-GAAP Reconciliation" in the Appendix.

(2)	Represents the sum of Commercial & Industrial Loans + Owner Occupied CRE Loans + Leases divided by Total Loans and Leases.	4
(3)	Represents non-interest expense less amortization of intangible assets divided by net interest income and non-interest income.

The Byline Franchise

Diversified product set with abilities to scale business lines both in-market and nationwide

Size

Customer and Market Focus

Retail Banking

• $5.0 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

Commercial

Banking

• $2.3 billion loan portfolio

• Serves business owners, small and middle market clients and well-capitalized sponsors
• Lending specialties: commercial real estate, commercial & industrial, commercial deposits & treasury management

Small Business

Capital

• $590.4 million loan portfolio
• $1.4 billion servicing portfolio

• #2 SBA lender in the U.S.
• #1 in Illinois and Wisconsin, #3 in Indiana
• Dedicated underwriting, servicing, portfolio management and workout staff with specialized expertise in U.S. government guaranteed loans

Source: Company Management.	5
Note: All data and figures as of June 30, 2020, unless otherwise stated.

The Byline Franchise (continued)

Diversified product set with abilities to scale business lines both in-market and nationwide

Size

Customer and Market Focus

Small Ticket

Equipment

Leasing

• $176.8 million lease portfolio
• Nationwide coverage

• Provides financing solutions for equipment vendors and their end-users
• Industries served: healthcare, manufacturing, technology, specialty vehicles, energy efficiency

Sponsor Finance

• $285.3 million loan portfolio
• Lower middle market focus

• Provides senior debt secured financing to PE-backed middle market companies with EBITDA between $2-$10 million
• Average senior funded leverage of 2.45x EBITDA
• 27 portfolio companies

Wealth

Management

• $518.5 million in assets under management
• 6 wealth management advisors

• Investment management and trust services
• High net worth clients in Chicago Metropolitan area

Source: Company Management.	6
Note: All data and figures as of June 30, 2020, unless otherwise stated.

Progress Report on Growth Strategies and Key Performance Indicators

Capitalize on

Strong Deposit

Franchise

Commentary

• Quality of our deposit franchise and access to stable funding
• Small businesses with low cost deposits drive growth

Key Performance Indicators

• NIB deposits consistently represent approximately 30% of total deposits
• Average cost of deposits decreased to 0.36% in 2Q20 compared to 0.54% in 1Q20

Drive Organic	 Top tier talent with local decision making
	Capitalize on market opportunities due to recent consolidation
Loan Growth
	and the CRE concentration limitations of other banks

• 27% growth in originated loan portfolio during 2019
• Successfully attracting experienced bankers to grow market share

Deliver

Improved

Profitability

• Leverage infrastructure to keep expense growth below revenue growth
• Optimize branch network to improve efficiencies

• Adjusted efficiency ratio(1) improved to 58.53% in 2019 vs. 59.68% in 2018
• Announced the consolidation of 20% of branch network

Strengthen

Franchise

through

Acquisitions

• Expand market share in key areas (current and adjacent)
• Focus on targets with strong deposit base and significant market growth opportunities

• Acquisition of First Evanston closed at end of May 2018
• Acquisition of Oak Park River Forest Bankshares closed at end of April 2019

Returning

Capital to

Shareholders

• Increasing profitability resulting in strong internal capital generation
• Balanced approach to capital allocation helps to effectively manage capital position

 1.25 million share repurchase program authorized in November 2019 (currently paused due to COVID-19 pandemic)

 Initiation of $0.03/share cash dividend for the quarter in December 2019

Source: Company Management.

(1) Considered a non-GAAP financial measure. See "Non-GAAP Reconciliation" in the Appendix.

7

Positioned to Manage Through the COVID-19 Environment

Consistent Progress in Strategic Branch Consolidation

4Q20 Branch Network Consolidation

• Third significant branch consolidation since recap in 2013
• • Changing customer behaviors and recognizing operational efficiencies
• 11 branches identified for consolidation; approximately 20% of current branch network
• Most impacted branches located within two miles of another Byline branch
• Annualized cost savings of $4.3 million
• • ~25% of cost savings to be redeployed into further investment in digital banking platform and renovation/upgrading of other retail branches
• One-timecharge of $5.9 million recognized during 3Q20 and 4Q20

Pro Forma Impact of 4Q20 Consolidations

Deposits per Branch

$107.8

$87.0

2Q20

Pro Forma

							Retail Branch Count												Deposits per Branch
87																											($ in millions)
	83																											$87.0
																													$63.6	$68.0
							57		56			59		61
														46						$43.7	$43.6
																						$24.1	$26.3
4Q14	4Q15	4Q16		4Q17	4Q18	4Q19	4Q20*
				Byline Branches		Branches Added in Acquisitions			4Q14	4Q15 4Q16		4Q17 4Q18 4Q19 2Q20	9

Note: Pro forma to reflect planned 4Q20 branch consolidation

COVID-19 Response and PPP Program

Implemented a phased-in return to the workplace approach beginning June 29; 70- 80% WFH through end of year

~70% of all locations remain open with access to drive-upand lobby appointment service

Funded over $635 million of PPP loans by processing over 3,700 applications; began processing forgiveness applications at the end of August

Assisted our clients by processing ~1,800

payment deferrals

Actively supporting community organizations and participating in local programs and initiatives

Note: PPP Data as of September 21, 2020

1. Represents sectors with less than 5% of the PPP portfolio.

PPP Loan Production Details

Over 3,700	$167,000
Applications Processed	Average Loan Balance
$635 million	74%
PPP Loans Funded	# of Loans < $150,000

		PPP by Industry
		Other (1)
Other Services (except Public	15%	Manufacturing
	Administration)
6%		20%
	Retail Trade		Food Services
7%
			11%
	Health Care
7%
	Wholesale Trade		Waste Management /
		Remediation Services
7%
	10%
	Prof., Scientific, and	Construction
	Tech. Services	9%	10
		8%

Loan and Lease Deferral Update - As of August 31, 2020

	Outstanding Deferrals			Deferrals by Industry
			% of	# of
	Balance ($mm)	Portfolio(2)	Deferrals			Accomodation &
	July 16,	August 31,	August 31,	August 31,	(1)
Business Unit		Other Services	Food Services
2020	2020	2020	2020	18%	13%
Commercial							Waste
$78.9	$68.2	1.8%	80			Management
Banking
					Wholesale Trade	11%
Consumer Loans	$4.0	4.6	0.1%	21	11%	Consumer Loans
Leasing	$14.6	2.5	0.1%	66
		10%
						Real Estate
Government
				16%	Manufacturing
Guaranteed	$24.9	13.1	0.4%	22
		21%
Lending
Total	$122.4	$88.4	2.4%	189

Deferred Loan and Lease Details

Deferral Origination Period	# Outstanding Deferrals (%)
March 2020	6.9%
April 2020	43.9%
May 2020	15.3%
June 2020	11.6%
July 2020	11.6%
August 2020	10.1%

• As of August 31, 2020 over 1,500 loans for $490.0 million have returned to regular payments since an initial deferral was granted
• As of August 31, 2020, of the $88.4 million currently on deferral,
• • 49 loans for $21.8 million that remain on the first deferral
  • 140 loans for $66.6 million that have been granted a second deferral

Note: Data as of August 31, 2020.

1. Represents sectors with less than 5% of the total portfolio.
2. Excludes PPP loans.

 75% of outstanding deferrals are principal and interest 11

Select COVID-19 Industries ($ in millions)

• Total loan and lease portfolio (excluding PPP) stood at $3.8 billion as of June 30, 2020; Aggregate exposure to select COVID-19 industries ~ 10.5% of portfolio
• Restaurants represent the largest exposures at $141.7 million or 3.8% of total loans and leases

		Air		$2.1 / 0.1%
		Transportation
		Performing Arts &	$10.7 / 0.3%
		Sports
		Religious & Non-	$42.9 / 1.1%
		Profit
Remaining Loan and
Select COVID-19 Industries
Lease Portfolio	Truck
$397.5	$40.1 / 1.1%
$3,381.9	Transportation
10.5%
89.5%
Nursing Homes	$49.3 / 1.3%
		Amusement	$53.0 / 1.4%
		Hotels	$57.7 / 1.5%
		Restaurants					$141.7 / 3.8%
						Loan and Lease Balance		Guaranteed Balance
								12

Note: Excludes PPP loans.

Select COVID-19 Industries Detail ($ in millions)

Restaurants	Hotels	Amusement

Portfolio Characteristics		Portfolio Characteristics
	Balance: $141.7 million			Balance: $57.7 million
		Conventional: $68.8 million				Conventional: $36.5 million
		Leasing: $3.0 million				Leasing: $566,000
		SBA: $70.0 million				SBA: $20.7 million
		 Guaranteed: $13.4 million				 Guaranteed: $949,000
	Average loan: $219,000			Average loan: $663,000
	Largest loan: $3.9 million			Largest loan: $10.0 million
Exposure: Deferral and SBA Subsidy		Exposure: Deferral and SBA Subsidy
$ of portfolio / % of portfolio		$ of portfolio / % of portfolio
	Deferrals: $48.3 million / 34%			Deferrals: $21.2 million / 37%
	SBA subsidy: $65.6 million / 46%			SBA subsidy: $14.0 million / 24%
			Other				Vacation	Other
		Caterers	2%				Camps	1%
Snack and	7%					4%
				Room, Dorms,
Nonalcoholic
Bev. Bars					and Workers
	12%					Camps
						20%
			Full-Service
Drinking			Restaurants
			41%
Places
(Alcoholic
Bev.)
12%
								Hotels (ex.
	Limited-							Casino
							Hotels) and
	Service							Motels
	Restaurants						75%
	26%

Portfolio Characteristics

• Balance: $53.0 million
• • Conventional: $20.8 million
  • Leasing: $1.3 million
  • SBA: $30.9 million
  • • Guaranteed: $8.5 million
• Average loan: $293,000
• Largest loan: $5.7 million

Exposure: Deferral and SBA Subsidy $ of portfolio / % of portfolio

• Deferrals: $12.4 million / 23%
• SBA subsidy: $28.5 million / 54%

Skiing Other

Facilities 7%

Amusement / Theme 3%

Parks

5%

	Fitness and
	Recreational
Other	Sports
Centers
Amusement /
35%
Recr.
Industries
19%

Golf Courses and Country Clubs

31%

13

Note: Data as of June 30, 2020.

Select COVID-19 Industries Detail ($ in millions)

Nursing Homes	Religious/Non-Profit/Civic	Trucking/Transportation

Portfolio Characteristics

• Balance: $49.3 million
• • Conventional: $41.9 million
  • Leasing: $665,000
  • SBA: $6.7 million
  • • Guaranteed: $177,000
• Average loan: $1.0 million
• Largest loan: $14.6 million

Exposure: Deferral and SBA Subsidy $ of portfolio / % of portfolio

• Deferrals: $25,000 / <1%
• SBA subsidy: $4.0 million / 8%

Nursing Care (Skilled)	Resi. Mental
3%
6%
Other Resi. Care
6%
Resi. Intellectual /
Develop. Disability
7%

Assisted

Living

78%

Portfolio Characteristics

• Balance: $42.9 million
• • Conventional: $31.0 million
  • Leasing: $1.7 million
  • SBA: $10.3 million
  • • Guaranteed: $345,000
• Average loan: $186,000
• Largest loan: $8.1 million

Exposure: Deferral and SBA Subsidy $ of portfolio / % of portfolio

• Deferrals: $4.8 million / 11%
• SBA subsidy: $468,000 / 1%

Civic and	Other
Social	2%
6%
Other Similar
Organizations
10%

Religious

Organization

82%

Portfolio Characteristics

• Balance: $40.1 million
• • Conventional: $34.7 million
  • Leasing: $1.8 million
  • SBA: $3.6 million
  • • Guaranteed: $512,000
• Average loan: $271,000
• Largest loan: $4.0 million

Exposure: Deferral and SBA Subsidy $ of portfolio / % of portfolio

• Deferrals: $23.4 million / 58%
• SBA subsidy: $3.6 million / 9%

Specialized Freight

Long Distance 1%

Truckload

11%

Freight Local

13%

Long-Distance

Less Than

Truckload

44%

Used Goods

Moving

31%

14

Note: Data as of June 30, 2020.

Second Quarter 2020 Financial Review

Second Quarter 2020 Summary

Solid Performance in a

Challenging

Environment

• Net income of $9.1 million, or $0.24 per diluted share, compared to $13.2 million in 2Q19 and $3.0 million in 1Q20
• • Provision for loans and lease losses of $15.5 million, an increase from $14.5 million in 1Q20 and $6.4 million in 2Q19
  • Net gain on loan sales increased to $6.5 million from $4.8 million in 1Q20
• Pre-taxpre-provision net income(1) of $28.4 million, up from $18.5 million in 1Q20
• Net interest income stable with prior quarter with average earning asset growth of 11.9%
• • NIM of 3.71%, down 80 bps YoY and down 46 bps QoQ, with cost of deposits down 39 bps
• Non-interestincome down 9.8% YoY but up 39.4% from 1Q20
• Non-interestexpense to average assets improved to 2.41% from 3.15% in 1Q20
• Efficiency ratio of 53.70%, compared to 67.16% in 1Q20
• ROAA of 0.59%; Pre-taxpre-provision ROAA(1) of 1.85%

		 Total assets increased by $658.8 million, or 11.5% from 1Q20 and $1.0 billion, or 18.6% from 2Q19
		 Total deposits increased by 17.0% over 1Q20 to $5.0 billion, driven primarily by growth in non-interest bearing and other
Balance Sheet		core deposits
	 DDA up 37.0% over 1Q20; core deposits 20.7% over 1Q20
		 Total loans and leases increased by 13.8% over 1Q20 to $4.4 billion, driven primarily by PPP loans
		 Loans and leases excluding impact of PPP loans $3.8 billion, total loans and leases decreased by 2.1% from 1Q20
		 Allowance to loans of 1.17%, or 1.36% excluding PPP loans, compares with 1.08% in 1Q20 and 0.81% in 2Q19
Credit Management		 NPLs/Total Loans and Leases of 99bps, or 91 bps excluding government guaranteed, down 32 bps and 27 bps from 1Q20
		 NPAs/Total Assets of 0.82% down 23 bps from 1Q20

Capital Management

and Liquidity

 Strong capital levels with a CET1 ratio of 12.33% and total risk based capital ratio of 15.86% increasing 9 bps and 136 bps for the quarter

 Strong liquidity position with $2.7 billion in total funding availability at June 30, 2020  Completed $50 million sub debt raise to further strengthen capital position

 Quarterly cash dividend of $0.03 per share; representing a 12.5% dividend payout ratio

16

(1) Represents a non-GAAP financial measure. See "Non-GAAP Reconciliation" in the appendix.

Loan and Lease Trends ($ in millions)

	Total loans and leases were $4.4 billion at 2Q20, an increase of
	$530.9 million from the prior quarter
		Originated portfolio increased by $610.9 million
		Growth primarily driven by PPP loans
		Acquired portfolio decreased by $80.1 million
		Utilization of credit lines decreased by $5.0 million

Originated and Acquired Loan & Lease Portfolio

$3,596

$2,585 $2,768 $2,836 $2,985

	Payoff activity increased by $2.6 million versus 1Q20
	 $85.4 million in 2Q20 compared to $82.7 million in 1Q20
	Line usage decreased to 58.5% in 2Q20 from 62.8% in 1Q20

$1,278

$1,063 $950 $876 $796

		Loans by Segment				Loans by Rate Type⁽¹⁾
		PPP
		14%	C&I				Libor
					29%
			30%
		Residential					Fixed
					45%
		15%
						Other
						1%
C&D	Commercial		Leasing		Prime
6%	Real Estate
	4%
		31%		25%

1. Excludes PPP Loans.

Q2 2019	Q3 2019	Q4 2019		Q1 2020	Q2 2020
		Total Originated Loans and Leases			Total acquired Loans and Leases

Loan & Lease Originations and Payoffs(1)

$182$179 $190

$136		$150
	$123
			$107
	$97
		$83	$85

Q2 2019		Q3 2019	Q4 2019		Q1 2020	Q2 2020
		Loan & Lease Originations			Loan & Lease Payoffs	17

Government-Guaranteed Lending ($ in millions)

• #2 SBA lender nationally; #1 lender in Illinois and Wisconsin and #3 in Indiana
• Leveraged SBA platform to originate approximately 3,600 PPP loans
• As part of coronavirus debt relief efforts, the SBA will pay 6 months of principal and interest for
• • All current 7(a) and 504 loans in regular servicing status
  • New 7(a) and 504 loans disbursed prior to September 27
• Approximately 89% of all SBA 7(a) loans are receiving payment under the CARES Act

Total SBC Closed Loan Commitments

Managed SBA 7(a) and USDA Loans

$1,863		$1,863	$1,891		$1,891	$2,010
$1,449		$1,447	$1,470		$1,471	$1,586
$415			$416	$421		$420	$424
	Q2 2019			Q3 2019		Q4 2019			Q1 2020		Q2 2020
				Unguaranteed Portion		Guaranteed Portion

Sector Concentration

Arts and Entertainment

$150.6

$125.1

$131.9

Wholesale Trade

6%

Other Services

6%

5%

$79.9 $80.3

Health Care	All Other Industries(1)
6%

32%

Food Services

14%

Manufacturing

16%

Q2 2019

Q3 2019

Q4 2019

Q1 2020

Q2 2020

Retail Trade
15%	18

(1) Represents sectors with less than 5% of the total portfolio.

Deposit Trends ($ in millions)

• Total deposits increased $719.5 million to $5.0 billion
• • Growth entirely attributable to increases in lower-cost deposit categories
• Money market demand deposits increased $129.5 million and time deposits decreased $74.9 million
• Non interest bearing increased to 35.7% of total deposits from 30.5% in 1Q20
• Total deposit costs decreased 39 basis points from prior quarter
• Interest bearing deposit costs decreased 53 basis points from prior quarter

Deposit Composition

$4,060	$4,080	$4,148	$4,239	$4,958
7.0%	7.4%	6.2%	4.7%	4.4%
24.1%	23.7%	22.1%	18.9%	14.3%
		32.7%	37.5%	35.4%
29.8%	29.8%
8.5%	9.1%	8.2%	8.4%	10.2%
31.8%	29.9%	30.9%	30.5%	35.7%

Q2 2019	Q3 2019	Q4 2019	Q1 2020	Q2 2020
		Non Interest Checking			Interest Checking
		MMDA & Savings			Time <$250K
		Time >$250K

Average Non-Interest Bearing Deposits

$1,693

$1,254 $1,224 $1,289 $1,299

Q2 2019

Q3 2019

Q4 2019

Q1 2020

Q2 2020

Cost of Interest Bearing Deposits

1.34%		1.34%	1.28%
							1.08%
0.92%		0.94%	0.88%					0.55%
					0.75%
											0.36%
	Q2 2019		Q3 2019		Q4 2019			Q1 2020		Q2 2020
				Cost of Interest Bearing Deposits				Cost of Deposits

19

Net Interest Income and Net Interest Margin Trends ($ in millions)

• Net interest margin decreased 46 basis points to 3.71% from 1Q20
• Excluding accretion income, net interest margin declined 39 basis points from 1Q20
• • Decline in earning asset yields due to decrease in short- term rates and addition of lower-yielding PPP loans
  • Partially offset by significant decline in cost of deposits
• Yield on loans and leases excluding PPP 4.94%
• Average cost of deposits for month of June down to 29 bps compared to 36 bps for 2Q20
• $573.0 million of CDs maturing in 2H20 with an average rate of 1.23%

	Net Interest Margin			NIM, Yields, and Costs
	4.62%				6.35%	6.51%	6.06%
4.51%						5.73%
	4.32%
0.40%	0.62%	4.17%		4.51%	4.62%	4.32%		4.71%
		4.17%
0.43%				3.71%
		0.29%
					2.73%		2.83%
				3.71%	2.69%	2.68%	2.28%
				0.22%
					0.92%	0.94%	0.88%	0.75%	0.36%
Q2 2019	Q3 2019	Q4 2019	Q1 2020	Q2 2020	Q2 2019	Q3 2019	Q4 2019	Q1 2020	Q2 2020
NIM		Accretion Income Impact	Average Loan Yield	Net interest Margin	Securities Yield	Cost of Deposits20

Non-Interest Income Trends ($ in millions)

• Non-interestincome increased $3.6 million from 1Q20
• • Higher net gains on sales of loans
  • Decrease in loan servicing asset revaluation
• No securities sales during the quarter

Small Business Capital

• $78.7 million of loan sales in 2Q20, compared to $61.0 million in 1Q20
• Higher average premiums in June and July
• Loan servicing revenue increased 13.3% year over year

Total Non-Interest Income

											9%	11%
$14.2	$14.8	$14.5						5%
		$12.8
										18%
						$9.2
											50%	7%
											Fees and service charges on deposits
											Net servicing fees
											ATM and interchange fees
	Q2		Q3		Q4		Q1		Q2
					Net gains on sales of loans
2019	2019	2019	2020	2020		Wealth management and trust income

Other including Net Servicing loss

Volume Sold and Average Net Premiums

Net Gains on Sales of Loans

$120						12.00%		$9.4	$8.7
	$93.2	$101.5
$100				11.50%	$7.5
11.28%
		10.44%	$78.7	11.00%				$6.5
$80	$75.3	11.41%
				10.50%				$4.8
			10.60%	$61.0
$60				10.00%
$40						9.50%
					9.00%
$20					9.27%
					8.50%
$0						8.00%	Q2 2019	Q3 2019	Q4 2019	Q1 2020	Q2 2020
	Q2 2019	Q3 2019	Q4 2019	Q1 2020	Q2 2020

10 year loans		25 year loans		USDA		Other		Average Net Premiums	21

Non-Interest Expense Trends ($ in millions)

• Non-interestexpenses was $37.0 million, down from $43.5 million in 1Q20
• • Lower salaries and employee benefits due to $4.5 million in deferred costs related to PPP loan originations
  • Decline in other non-interest expense due to a decrease in impairment charges on assets held for sale
• Efficiency ratio of 53.70% improved from 67.16% in prior quarter, due to combination of higher revenue and lower non-interest expense
• Non-interestexpense to average assets of 2.41%, compared with 3.15% in prior quarter
• Deposits per branch increased to $87.0 million vs. $74.4 million in 1Q20

Non-Interest Expense

Efficiency Ratio

$44.0 $45.4 $43.7 $43.5

$37.0

Q2 2019	Q3 2019	Q4 2019	Q1 2020	Q2 2020
	Salaries and employee benefits			Occupancy and equipment
	Data processing				Legal, audit and other
	Loan and lease related				Intangible assets amortization
	All other

			67.16%
61.19%	59.81%	60.93%	66.00%
56.02%	58.17%	60.51%	53.70%
		53.70%

Q2 2019		Q3 2019	Q4 2019		Q1 2020	Q2 2020
		Adjusted Efficiency Ratio(1)		Efficiency Ratio

22

(1) Represents a non-GAAP financial measure. See "Non-GAAP Reconciliation" in the appendix.

Asset Quality Trends ($ in millions)

• Non-performingassets to total assets decreased to 0.82% in 2Q20 from 1.05% in 1Q20
• • NPLs/ Total Loans & Leases decreased by 32 bps to 0.99% in 2Q20 from 1.31% in 1Q20
  • NPLs/ Total Loans & Leases (excluding government guaranteed) decreased to 0.91% in 2Q20 from 1.18% in 1Q20
  • Other real estate owned decreased by $0.6 million during the quarter
  • NCOs/ average loans and leases increased to 57 bps in 2Q20 from 48 bps in 1Q20
  • • Impacted by the resolution and charge-off of one previously identified C&I relationship
• ALLL/Loans and Leases increased to 1.17% in 2Q20 compared to 1.08% in 1Q20
• Excluding PPP loans, ALLL/Loans and Leases was 1.36% and NPLs/Loans and Leases was 1.16% in 2Q20
• Acquisition accounting adjustments on acquired loans decreased to $19.3 million versus $25.9 million in the prior quarter

						NPLs / Total Loans & Leases								Loss Absorbency
										1.31%				$67.7			$70.6
										0.13%
					1.09%												$51.3
					1.00%					0.99%							1.86%
	0.95%	0.11%						$41.8
	0.11%					0.08%
	0.13%								1.74%
												1.17%	1.60%
																1.08%
										1.18%
					0.98%
	0.82%	0.89%					0.91%
																				Q1 2020		Q2 2020
																				ALLL
																				ALLL + unamortized loan marks
		Q2 2019		Q3 2019		Q4 2019			Q1 2020		Q2 2020					ALLL as % of loans and leases
				NPLs Exclud. Government Guaranteed		Government Guaranteed NPLs					ALLL + unamortized loan marks as % of loans and leases
									ALLL + unamortized loan marks as % of loans and leases excluding PPP	23

Strong Liquidity and Capital Position

Liquidity Position and Funding Profile

• Loan growth funded through core deposits
• Access to $2.7 billion of liquidity available
• Loan / Deposit ratio of 88.62%
• Cash and cash equivalents of $139.9 million
• $63.4 million of cash at the holding company at 2Q20

Borrowed funds

11%

Brokered CDs

1%

Interest-bearing

transaction

Time41% 15%

Demand

32%

Strong Capital Base

• CET1 of 12.33% and Total Capital Ratio of 15.86%
• • Excess CET1 capital above conservation buffer of $239.2 million
• Raised $50.0 million subordinated debt during 2Q20
• $780.9 million total stockholders equity
• • TCE / TA was 9.55% for 2Q20 and 10.60% excluding
    PPP
• Common dividend of $0.03 per share for the quarter
• No share repurchases for the quarter

Regulatory Capital

			15.86%
14.19%	14.43%	14.50%
13.71%
12.12%	12.36%	12.24%	12.33%
11.65%

Q2 2019	Q3 2019	Q4 2019		Q1 2020	Q2 2020
			Total Capital Ratio		CET1	24

Appendix

Select COVID-19 Industries: Loan and Lease Pool by Industry ($ in thousands)

		Commercial		Residential				Commercial		Installment	Leasing
				Construction			Financing		PPP		Total
		Real Estate		Real Estate		and Industrial		and Other
						Receivables
Restaurants	$	73,180	$	625	$	-	$	64,977	$	- $	2,959	$	64,483	$	206,224
Hotels		56,157		47		-		943		-	566		4,043		61,756
Amusement		25,721		-		-		25,983		-	1,284		7,094		60,082
Nursing Homes		13,108		65		30,877		4,546		-	664		9,377		58,637
Truck Transportation		17,651		-		1,447		19,269		-	1,774		9,714		49,855
Religious & Non-Profit		33,277		1,164		1,097		5,728		-	1,663		13,413		56,342
Performing Arts & Sports		5,062		-		-		5,195		-	447		1,468		12,172
Air Transportation		-		-		-		1,975		-	75		528		2,578
Total Select COVID-19
Industries		224,156		1,901		33,421		128,616		-	9,432		110,120		507,646
Remaining Loans and Leases		1,126,800		668,863		212,582		1,202,533		3,758	167,396		501,544		3,883,476

Total Loans

$ 1,350,956

$

670,764

$

246,003

$ 1,331,149

$

3,758

$

176,828

$

611,664

$

4,391,122

26

Note: Data as of June 30, 2020.

Projected Acquisition Accounting Accretion ($ in millions)

Projected Accretion(1) ($ in millions)

$2.1	$1.9	$1.9	$2.1
	$1.8

Q3 2020 E	Q4 2020 E	Q1 2021 E	Q2 2021 E	Q3 2021 E
			PCI		FAS

Accretion as a Percentage of Total Revenue

	10.6%
7.1%	7.9%

5.9%

4.9%

Q2 2019

Q3 2019

Q4 2019

Q1 2020

Q2 2020

27

(1) Projections are updated quarterly, assumes no prepayments and are subject to change.

PPP Impact on 2Q20 Financials

At or for the

Three Months Ended 6/30/20

Total Loans

Average Loans

$626.6 million

$439.3 million

Average Other Borrowings(1)	$48.8 million
Interest and Processing Fee Income	$2.9 million
Interest Expense	$0.04 million
Average Loan Yield excluding PPP	4.94%
Deferred Loan Fee	$19.7 million

28

(1) Average borrowings under the PPPLF

Strengthening the Byline Franchise through Accretive Transactions

Closed October 14, 2016

Closed May 31, 2018

Closed April 30, 2019

Transaction

Pricing

	$105.0 million transaction value		$178.6 million transaction value		$40.0 million transaction value
	Pricing: 1.81x TCE / 8.3x earnings		1.7x TCE / 9.1% core deposit premium		1.65x TCE / 6.1% core deposit premium

Key

Transaction

Highlights

• Diversified revenues by adding significant non-interest income and asset origination capabilities
• Created the 6th largest SBA originator in the U.S. and #1 in Illinois and Wisconsin
• Leveraged Byline's strong core deposit funding base
• Accelerated the reversal of Byline's valuation allowance on its deferred tax asset

• 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

• Expanded Byline's footprint to the attractive sub-markets of Oak Park and River Forest
• Provided stable, low-cost deposit base with deposit beta of 2% (4Q16-2Q18)
• Efficient branches with average deposits of ~$100 million per branch

Announced	 Not publicly disclosed		14.5% EPS accretion in 2019(1)
Pro Forma		 TBV per share dilution earnback of 3.3
Financial			years(2)
Impact			Credit mark: (1.1% of loans)

• 5.5% EPS accretion(1)
• TBV per share dilution earnback of 3.3 years(2)
• Credit mark: (2.5% of loans)

Growth

	Added ~$352 million in total deposits		Added ~$1.0 billion in total deposits		Added ~$300 million in total deposits
	Added ~$363 million in total loans		Added ~$900 million in total loans		Added ~$250 million in total loans
	Opportunity to leverage SBA and USDA		Provided increased scale to enhance		Minimal execution risk given relative size
	lending infrastructure through branch		efficiencies
	network

(1)	Excludes one-timemerger-related expenses.	29
(2)	Earnback calculated using the cross over method.

Five Quarter Financial Summary ($ in millions, except per share data)

			For the Three Months Ended,
	June 30, 2020		March 31, 2020	December 31, 2019	September 30, 2019	June 30, 2019
Income Statement
Net interest income	$52.6	$52.8	$53.9	$57.8	$54.4
Provision	15.5	14.5	4.4	5.9	6.4
Non-interest income	12.8	9.2	14.5	14.8	14.2
Non-interest expense	37.0	43.5	43.7	45.4	44.0
Pretax income	12.9	4.0	20.3	21.3	18.3
Pre-taxpre-provision net income(1)	28.4	18.5	24.7	27.2	24.7
Income taxes	3.7	1.1	4.5	5.9	5.1
Net income	9.1	3.0	15.9	15.3	13.2
Dividends on preferred shares	0.2	0.2	0.2	0.2	0.2
Net income available attributable to common shareholders	$8.9	$2.8	$15.7	$15.1	$13.0
Diluted earnings per common share(1)	$0.24	$0.07	$0.41	$0.39	$0.34
Balance Sheet
Total loans and leases	$4,391.0	$3,860.3	$3,785.7	$3,831.1	$3,863.1
Total deposits	4,958.3	4,238.8	4,147.6	4,080.3	4,060.2
Tangible common equity(1)	594.0	573.9	559.4	545.9	525.7
Balance Sheet Metrics
Loans and leases / deposits	88.62%	91.38%	91.56%	94.07%	95.60%
Tangible common equity / tangible assets(1)	9.55	10.33	10.47	10.38	10.09
Key Performance Ratios
Net interest margin	3.71%	4.17%	4.32%	4.62%	4.51%
Efficiency ratio	53.70	67.16	60.93	59.81	61.19
Adjusted efficiency ratio(1)	53.70	66.00	60.51	58.17	56.02
Non-interest expense to average assets	2.41	3.15	3.19	3.32	3.34
Non-interest income to total revenues(1)	19.56	14.79	21.21	20.38	20.67
Return on average assets	0.59	0.21	1.16	1.12	1.00
Adjusted return on average assets(1)	0.59	0.25	1.17	1.18	1.21
Pre‐tax pre‐provision return on average assets(1)	1.85	1.33	1.81	1.98	1.88
Dividend payout ratio on common stock	12.50	42.86	7.32	N/A	N/A
Tangible book value per share(1)	$15.47	$14.95	$14.62	$14.30	$13.79

30

(1) Represents a non-GAAP financial measure. See "Non-GAAP Reconciliation" in the appendix.

Non-GAAP Reconciliation

							As of or For the Three Months Ended
			June 30,			March 31,				December 31,			September 30,			June 30,
(dollars in thousands, per share data)	2020		2020				2019			2019			2019
Net income and earnings per share excluding significant items
Reported Net Income	$	9,139	$	2,966	$	15,852	$	15,342	$	13,211
Significant items:
Impairment charges on assets
held for sale		-			715			111			67			-
Merger-related expense		-			-			127			1,043			3,152
Core system conversion expense		-			-			48			77			394
Tax benefit on significant items		-			(199)			(79)			(369)			(842)
Adjusted Net Income	$	9,139	$	3,482	$	16,059	$	16,160		$	15,915
Reported Diluted Earnings
per Share	$	0.24	$	0.07	$	0.41	$	0.39	$	0.34
Significant items:
Impairment charges on assets
held for sale		-			0.02			-			-			-
Merger-related expense		-			-			0.01			0.03			0.08
Core system conversion expense		-			-			-			-			0.01
Tax benefit on significant items		-			-			-			(0.01)			(0.02)
Adjusted Diluted Earnings
per Share	$	0.24	$	0.09	$	0.42	$	0.41	$	0.41

31

Non-GAAP Reconciliation (continued)

(dollars in thousands, except per share data,					As of or For the Three Months Ended
	June 30,			March 31,			December 31,			September 30,			June 30,
ratios annualized, where applicable)		2020			2020			2019			2019			2019
Adjusted non-interest expense:
Non-interest expense	$	37,012	$	43,527	$	43,694	$	45,448	$	43,954
Less: Significant items
Impairment charges on assets held for sale		-			715			111			67			-
Merger-related expense		-			-			127			1,043			3,152
Core system conversion expense		-			-			48			77			394
Adjusted non-interest expense	$	37,012	$	42,812	$	43,408	$	44,261	$	40,408
Adjusted non-interest expense excluding amortization of
intangible assets:
Adjusted non-interest expense	$	37,012	$	42,812	$	43,408	$	44,261	$	40,408
Less: Amortization of intangible assets		1,892			1,893			2,002			2,003			1,959
Adjusted non-interest expense excluding amortization of	$	35,120	$	40,919	$	41,406	$	42,258	$	38,449
intangible assets
Pre-taxpre-provision net income:
Pre-tax income	$	12,867	$	4,016	$	20,349	$	21,265	$	18,286
Add: Provision for loan and lease losses		15,518			14,455			4,387			5,931			6,391
Pre-taxpre-provision net income	$	28,385	$	18,471	$	24,736	$	27,196	$	24,677
Adjusted pre-taxpre-provision net income:
Pre-taxpre-provision net income	$	28,385	$	18,471	$	24,736	$	27,196	$	24,677
Impairment charges on assets held for sale		-			715			111			67			-
Merger-related expense		-			-			127			1,043			3,152
Core system conversion expense		-			-			48			77			394
Adjusted pre-taxpre-provision net income	$	28,385	$	19,186	$	25,022	$	28,383	$	28,223
Total revenues:
Net interest income	$	52,609	$	52,825	$	53,914	$	57,838	$	54,448
Add: Non-interest income		12,788			9,173			14,516			14,806			14,183
Total revenues	$	65,397	$	61,998	$	68,430	$	72,644	$	68,631
Tangible common stockholders' equity:
Total stockholders' equity	$	780,935	$	762,667	$	750,115	$	735,866	$	717,675
Less: Preferred stock		10,438			10,438			10,438			10,438			10,438
Less: Goodwill		148,353			148,353			148,353			145,638			145,638
Less: Core deposit intangibles and other intangibles		28,117			30,009			31,902			33,905			35,908
Tangible common stockholders' equity	$	594,027	$	573,867	$	559,422	$	545,885	$	525,691

32

Non-GAAP Reconciliation (continued)

(dollars in thousands, except per share data,					As of or For the Three Months Ended
	June 30,			March 31,			December 31,			September 30,			June 30,
ratios annualized, where applicable)		2020			2020			2019			2019			2019
Tangible assets:
Total assets	$	6,393,518	$	5,734,754	$	5,521,809	$	5,438,278	$	5,391,236
Less: Goodwill		148,353			148,353			148,353			145,638			145,638
Less: Core deposit intangibles and other intangibles		28,117			30,009			31,902			33,905			35,908
Tangible assets	$	6,217,048	$	5,556,392	$	5,341,554	$	5,258,735	$	5,209,690
Average tangible common stockholders' equity:
Average total stockholders' equity	$	775,879	$	765,427	$	745,745	$	729,781	$	696,928
Less: Average preferred stock		10,438			10,438			10,438			10,438			10,438
Less: Average goodwill		148,353			148,353			146,202			145,638			140,073
Less: Average core deposit intangibles and other intangibles		29,087			31,063			32,990			35,102			35,163
Average tangible common stockholders' equity	$	588,001	$	575,573	$	556,115	$	538,603	$	511,254
Average tangible assets:
Average total assets	$	6,186,974	$	5,565,952	$	5,427,046	$	5,435,762	$	5,274,820
Less: Average goodwill		148,353			148,353			146,202			145,638			140,073
Less: Average core deposit intangibles and other intangibles		29,087			31,063			32,990			35,102			35,163
Average tangible assets	$	6,009,534	$	5,386,536	$	5,247,854	$	5,255,022	$	5,099,584
Tangible net income available to common stockholders:
Net income available to common stockholders	$	8,944	$	2,770	$	15,656	$	15,146	$	13,016
Add: After-tax intangible asset amortization		1,365			1,366			1,445			1,445			1,413
Tangible net income available to common stockholders	$	10,309	$	4,136	$	17,101	$	16,591	$	14,429
Adjusted Tangible net income available to common
stockholders:
Tangible net income available to common stockholders	$	10,309	$	4,136	$	17,101	$	16,591	$	14,429
Impairment charges on assets held for sale		-			715			111			67			-
Merger-related expense		-			-			127			1,043			3,152
Core system conversion expense		-			-			48			77			394
Tax benefit on significant items		-			(199)			(79)			(369)			(842)
Adjusted tangible net income available to common
stockholders	$	10,309	$	4,652	$	17,308	$	17,409	$	17,133

33

Non-GAAP Reconciliation (continued)

(dollars in thousands, except share and per share data,					As of or For the Three Months Ended
	June 30,			March 31,			December 31,			September 30,			June 30,
ratios annualized, where applicable)		2020			2020			2019			2019			2019
Pre-taxpre-provision return on average assets:
Pre-taxpre-provision net income	$	28,385	$	18,471	$	24,736	$	27,196	$	24,677
Average total assets		6,186,974			5,565,952			5,427,046			5,435,762			5,274,820
Pre-taxpre-provision return on average assets		1.85%			1.33%			1.81%			1.98%			1.88%
Adjusted pre-taxpre-provision return on average assets:
Adjusted pre-taxpre-provision net income	$	28,385	$	19,186	$	25,022	$	28,382	$	28,223
Average total assets		6,186,974			5,565,952			5,427,046			5,435,762			5,274,820
Adjusted pre-taxpre-provision return on average assets		1.85%			1.39%			1.83%			2.07%			2.15%
Non-interest income to total revenues:
Non-interest income	$	12,788	$	9,173	$	14,516	$	14,806	$	14,183
Total revenues		65,397			61,998			68,430			72,644			68,631
Non-interest income to total revenues		19.56%			14.79%			21.21%			20.38%			20.67%
Adjusted non-interest expense to average assets:
Adjusted non-interest expense	$	37,012	$	42,812	$	43,408	$	44,261	$	40,408
Average total assets		6,186,974			5,565,952			5,427,046			5,435,762			5,274,820
Adjusted non-interest expense to average assets		2.41%			3.09%			3.17%			3.23%			3.07%
Adjusted efficiency ratio:
Adjusted non-interest expense excluding amortization of
intangible assets	$	35,120	$	40,919	$	41,406	$	42,258	$	38,449
Total revenues		65,397			61,998			68,430			72,644			68,631
Adjusted efficiency ratio		53.70%			66.00%			60.51%			58.17%			56.02%

34

Non-GAAP Reconciliation (continued)

(dollars in thousands, except share and per share data,					As of or For the Three Months Ended
	June 30,			March 31,			December 31,			September 30,			June 30,
ratios annualized, where applicable)		2020			2020			2019			2019			2019
Adjusted return on average assets:
Adjusted net income	$	9,139	$	3,482	$	16,059	$	16,160	$	15,915
Average total assets		6,186,974			5,565,952			5,427,046			5,435,762			5,274,820
Adjusted return on average assets		0.59%			0.25%			1.17%			1.18%			1.21%
Adjusted return on average stockholders' equity:
Adjusted net income	$	9,139	$	3,482	$	16,059	$	16,160	$	15,915
Average stockholders' equity		775,879			765,427			745,745			729,781			696,928
Adjusted return on average stockholders' equity		4.74%			1.83%			8.54%			8.78%			9.16%
Tangible common equity to tangible assets:
Tangible common equity	$	594,027	$	573,867	$	559,422	$	545,885	$	525,691
Tangible assets		6,217,048			5,556,392			5,341,554			5,258,735			5,209,690
Tangible common equity to tangible assets		9.55%			10.33%			10.47%			10.38%			10.09%
Return on average tangible common stockholders' equity:
Tangible net income available to common stockholders	$	10,309	$	4,136	$	17,101	$	16,591	$	14,429
Average tangible common stockholders' equity		588,001			575,573			556,115			538,603			511,254
Return on average tangible common stockholders' equity:		7.05%			2.89%			12.20%			12.22%			11.32%
Adjusted return on average tangible common stockholders'
equity:
Adjusted tangible net income available to common stockholders	$	10,309	$	4,652	$	17,308	$	17,409	$	17,133
Average tangible common stockholders' equity		588,001			575,573			556,115			538,603			511,254
Adjusted return on average tangible common stockholders'
equity		7.05%			3.25%			12.35%			12.82%			13.44%
Tangible book value per share:
Tangible common equity	$	594,027	$	573,867	$	559,422	$	545,885	$	525,691
Common shares outstanding		38,388,217			38,383,021			38,256,500			38,169,126			38,115,219
Tangible book value per share	$	15.47	$	14.95	$	14.62	$	14.30	$	13.79

35