Byline Bancorp, Inc. · NYSE:BY
Byline Bancorp — Q1 2022 Earnings Presentation
21 slides from Byline Bancorp's earnings presentation, Apr 29, 2022
Slide 1: 2022 Conference Call
al Exhibit 99.2 ai 2022 Conference Call yline Bancorp, Inc.
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: First Quarter 2022 Highlights
$22.3 million Net Income $0.58 Earnings per Diluted Share 1.35% Return on Average Assets 14.36% Return on Tangible Common Equity(1) $6.8 billion Total Assets 41.3% Non-interest Bearing Deposits 3.82% Net Interest Margin (FTE)(1) 10.75% CET1 Capital Ratio First Quarter 2022 Highlights Balance Sheet F
Slide 4: Loan and Lease Trends
Loan and Lease Trends ($ in millions) Originations and Payoffs(1) Portfolio by Segment Total Loans & Leases and Average Yield Rate Type(1) Year-over-Year Change, ex. PPP $926.1MM or 24.0% Excludes PPP Loans. Total loans and leases were $4.8 billion at 1Q22, an increase of $227.0 million, or 20.0% an
Slide 5: Government-Guaranteed Lending
Government-Guaranteed Lending ($ in millions) On Balance Sheet SBA 7(a) & USDA Loans A leading SBA 7(a) lender as of March 31, 2022 #5 SBA 7(a) lender in the United States #1 SBA 7(a) lender in Illinois #3 SBA 7(a) lender in Wisconsin Closed $129.1 million loan commitments in 1Q22, up 15.7% YoY SBA
Slide 6: Deposit Trends
Total deposits increased $375.1 million, or 29.5% annualized, to $5.5 billion Strong inflow of commercial non-interest bearing deposits Deposit mix remains exceptional with non-interest bearing representing 41.3% of total deposits Commercial deposits accounted for 50.7% of total deposits and represe
Slide 7: Net Interest Income and Net Interest Margin Trends
Net Interest Income and Net Interest Margin Trends Net interest income was $58.7 million, down 4.8% from 4Q21 Net interest margin decreased 15 basis points from 4Q21 to 3.81% Net interest margin decreased QoQ, primarily due to lower loan fees and lower volume of PPP forgiveness Excluding accretion i
Slide 8: Well Positioned to Benefit from Higher Rates
Well Positioned to Benefit from Higher Rates Variable Rate Floors By Index Variable Rate Impact (60% of Total Loans) ($ in millions) Index In the Money Out Of Money No Floor Total Total % Libor Based $75 $739 $326 $1,140 43% Prime Based 29 566 565 1,160 44% SOFR Based 187 115 10 312 12% Other 3 16 1
Slide 9: Non-Interest Income Trends
Total Non-Interest Income Non-Interest Income Trends ($ in millions) Non-interest income was $19.4 million, up 2.2% from 4Q21 $1.2 million increase in other non-interest income due to swap income Wealth management fees increased $284,000, or 37.3% linked quarter and $280,000, or 36.5% year-over-year
Slide 10: Non-Interest Expense Trends
Non-Interest Expense Trends ($ in millions) Non-interest expenses decreased to $44.6 million from $59.0 million in 4Q21, primarily attributable to: $12.4 million decrease in asset impairment charges, which were taken during 4Q21 due to branch consolidations and our real estate strategy $3.2 million
Slide 11: Asset Quality Trends
Asset Quality Trends ($ in millions) NPLs / Total Loans & Leases Loss Absorbency 1.24% 1.32% Net Charge-offs Non-performing assets to total assets declined to 0.33% in 1Q22 from 0.38% in 4Q21 NPLs / total loans and leases decreased 9 bps to 0.42% in 1Q22 from 0.51% in 4Q21 NCOs / average loans and l
Slide 12: Strong Capital Position and Focus on Return on Capital
Project Sox Offer Migration Strong Capital Position and Focus on Return on Capital Capital Ratios Return on Average Tangible Common Equity (1) Tangible Book Value per Share ($) (1) (1) Repurchased 282,819 shares of common stock during 1Q22 at a cost of $7.6 million Declared common stock dividend of
Slide 13: 2022 Strategic Priorities and Near-Term Outlook
2022 Strategic Priorities and Near-Term Outlook Commercial banking focus through organic loan, lease and deposit growth High single digit loan growth for 2022 Investing in digital capabilities and automation Online deposit account opening for businesses - second half of 2022 / nCino loan origination
Slide 14: Appendix
Appendix @ Byline Bancorp, Inc.
Slide 15: Income Statement and Balance Sheet Summary
As of or For the Three Months Ended (dollars in thousands, except per share data) March 31, December 31, September 30, June 30, March 31, 2022 2021 2021 2021 2021 Income Statement Net interest income $ 58,736 $ 61,728 $ 59,845 $ 58,174 $ 56,640 Provision (recapture) for loan and lease losses 4,995 (
Slide 16: Non-GAAP Reconciliation
As of or For the Three Months Ended (dollars in thousands, except per share data) March 31, 2022 December 31, 2021 September 30, 2021 June 30, 2021 March 31, 2021 Net income and earnings per share excluding significant items Reported Net Income $ 22,311 $ 17,189 $ 25,306 $ 28,492 $ 21,798 Significan
Slide 17: Non-GAAP Reconciliation
As of or For the Three Months Ended (dollars in thousands) March 31, 2022 December 31, 2021 September 30, 2021 June 30, 2021 March 31, 2021 Adjusted non-interest expense: Non-interest expense $ 44,555 $ 58,968 $ 44,180 $ 42,981 $ 38,842 Less: Significant items Impairment charges on assets held for s
Slide 18: Non-GAAP Reconciliation
As of or For the Three Months Ended (dollars in thousands) March 31, 2022 December 31, 2021 September 30, 2021 June 30, 2021 March 31, 2021 Tangible common stockholders' equity: Total stockholders' equity $ 788,671 $ 836,382 $ 824,418 $ 817,073 $ 793,795 Less: Preferred stock — 10,438 10,438 10,438
Slide 19: Non-GAAP Reconciliation
As of or For the Three Months Ended (dollars in thousands, except share and per share data, ratios annualized, where applicable) March 31, 2022 December 31, 2021 September 30, 2021 June 30, 2021 March 31, 2021 Pre-tax pre-provision return on average assets: Pre-tax pre-provision net income $ 33,607
Slide 20: Non-GAAP Reconciliation
As of or For the Three Months Ended March 31, 2022 December 31, 2021 September 30, 2021 June 30, 2021 March 31, 2021 Adjusted return on average assets: Adjusted net income $ 22,311 $ 26,261 $ 26,350 $ 29,905 $ 22,237 Average total assets 6,705,986 6,699,069 6,560,868 6,720,492 6,587,765 Adjusted ret
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