Byline Bancorp, Inc. · NYSE:BY
Byline Bancorp — Q2 2023 Earnings Presentation
24 slides from Byline Bancorp's earnings presentation, Jul 27, 2023
Slide 1: 2Q23 Earnings Presentation
2Q23 Earnings Presentation
Slide 2: Forward-Looking Statements
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
Slide 3: Second Quarter 2023 Highlights
Second Quarter 2023 Highlights Net Income & EPS PTPP ROAA & ROTCE(1) $26.1 million $41.1 million 1.41% ROAA $0.70 per diluted share 2.23% PTPP ROA 16.78% ROTCE Organic Growth & Profitability Strong Balance Sheet Disciplined Credit & Capital Profile Revenue of $90.5 million, up 19%; PTPP of $41.1
Slide 4: Loan and Lease Trends
Loan and Lease Trends ($ in millions) Total Loans & Leases and Average Yield Highlights $5,469 $5,544 $5,597 $5,185 $5,309 Total loans and leases were $5.6 billion at 2Q23, an increase of $52.8 million, or 3.8% annualized 7.18% Originated $312.1 million in new loans, net of loan sales in 2Q23 6.
Slide 5: Government-Guaranteed Lending
Government-Guaranteed Lending ($ in millions) On Balance Sheet SBA 7(a) & USDA Loans Highlights $ Balance % of Portfolio A leading SBA 7(a) lender as of June 30, 2023 Unguaranteed $383.7 6.9% Awarded top SBA 7(a) lender in Illinois for the 14th consecutive year Guaranteed 88.9 1.6% Closed $140
Slide 6: Deposit Trends
Deposit Trends ($ in millions) Deposit Composition Highlights Total deposits were $5.9 billion, up 7.2% annualized from 1Q23 3.7% 2.0% 2.8% 2.9% 3.6% 8.9% 10.4% Total average deposits up 1.7% QoQ 13.4% 18.7% 20.5% Commercial deposits accounted for 48.3% of total deposits and represent 37.0% 38
Slide 7: Net Interest Income and Net Interest Margin Trends
Net Interest Income and Net Interest Margin Trends Net Interest Income Highlights $76,604 $75,718 $76,166 Net interest income was $76.2 million, up 0.6% from 1Q23 $68,635 $61,760 Net interest margin decreased 6 basis points from 1Q23 to 4.32% Loan and lease yield of 7.18%, up 35 basis points f
Slide 8: Non-Interest Income Trends
Non-Interest Income Trends ($ in millions) Total Non-Interest Income Highlights $15.1 Non-interest income was $14.3 million, down 5.6% from 1Q23 $14.3 $14.3 11% 16% 7% $865,000 FV mark on loan servicing asset charge due to $12.0 $11.5 18% increased prepayments Non-interest income remained stab
Slide 9: Non-Interest Expense Trends
Non-Interest Expense Trends ($ in millions) Non-Interest Expense Highlights Non-interest expenses increased to $49.3 million from $48.8 million in 1Q23, $50.5 $48.8 $49.3 primarily attributable to: $46.0 $43.6 Increase in data processing / legal, audit and other professional fees related to acqu
Slide 10: Asset Quality Trends
Asset Quality Trends ($ in millions) Net Charge-offs Allowance for Credit Losses (ACL) $4.3 $90.5 $92.7 $79.7 $81.9 $3.2 $74.0 $2.2 $1.8 1.64% 1.66% $1.2 0.31% 0.24% 1.51% 1.51% 0.17% 0.14% 1.43% 0.09% Q2 2022 Q3 2022 Q4 2022 Q1 2023 Q2 2023 Q2 2022 Q3 2022 Q4 2022 Q1 2023 Q2 2023 Net charge-offs of
Slide 11: Strong Liquidity and Securities Portfolio
Strong Liquidity and Securities Portfolio Liquidity Position Highlights Cash and cash equivalents of $320.2 million No outstanding Discount Window or Bank Term Funding borrowings $1.1 billion investment portfolio (~99.8% AFS) HTM portfolio of $2.1 million ($26,000 in unrealized losses) $1.
Slide 12: Strong Capital Position
Strong Capital Position Capital Ratios Return on Average Tangible Common Equity 17.75% 17.50% 13.52% 16.49% 13.09% 13.02% 13.00% 13.19% 15.31% 14.17% 17.21% 16.20% 16.78% 15.31% 8.87% 14.17% 8.53% 8.10% 8.42% 8.66% Q2 2022 Q3 2022 Q4 2022 Q1 2023 Q2 2023 Q2 2022 Q3 2022 Q4 2022 Q1 2023 Q2 2023 (1) (
Slide 13: Our Strategy Remains Consistent
Our Strategy Remains Consistent Grow our Commercial Differentiated approach to grow loans and deposits organically in 1 Client Franchise targeted market segments Maintain Balance Maintain a strong balance sheet, ample capital flexibility and strong 2 Sheet Strength asset quality Continue to Invest i
Slide 14: 2Q23 Appendix
2Q23 Earnings Presentation Appendix
Slide 15: Granular Deposit Base
Granular Deposit Base A strength of our franchise is our well diversified …with limited concentration and granular customer deposit base… base providing a stable source of funding Consumer Deposits(1) ~75% of Total Deposits are FDIC Insured $3.2 billion at 6/30/23 Total Franchise Customer Base 38 ~1
Slide 16: CRE Portfolio: Office Represents 3.1% of Total Loans
CRE Portfolio: Office Represents 3.1% of Total Loans Non-Owner Occupied Commercial Real Estate Portfolio Owner Occupied CRE ($ in millions) 6/30/23 % of NOO CRE Loans 8.3% Multifamily $453.9 30.2% Non-Owner Occupied Office CRE Industrial /Warehouse 450.6 30.0% 3.1% Office 171.2 11.4% Total Loans & L
Slide 17: Office CRE Portfolio: Diversified Tenants and Markets
Office CRE Portfolio: Diversified Tenants and Markets Office Portfolio CRE Office: Geographic Mix by State Office Portfolio Metrics Tenant Classification ($ in millions) 6/30/23 6/30/23 3/31/23 Single Tenant Illinois $85.4 28% North Carolina 26.0 Avg. Commitment $3.6 million $3.4 million Medical 16%
Slide 18: Five Quarter Financial Summary
Five Quarter Financial Summary As of or For the Three Months Ended Recast Recast June 30, March 31, December 31, September 30, June 30, (dollars in thousands, except per share data) 2023 2023 2022 2022 2022 Income Statement Net interest income $ 76,166 $ 75,718 $ 76,604 $ 68,635 $ 61,760 Provision (
Slide 19: Non-GAAP Reconciliation
Non-GAAP Reconciliation As of or For the Three Months Ended Recast Recast June 30, March 31, December 31, September 30, June 30, (dollars in thousands, except per share data) 2023 2023 2022 2022 2022 Net income and earnings per share excluding significant items Reported Net Income $ 26,107 $ 23,945
Slide 20: Non-GAAP Reconciliation (continued)
Non-GAAP Reconciliation (continued) As of or For the Three Months Ended Recast Recast Recast June 30, March 31, December 31, September 30, June 30, (dollars in thousands) 2023 2023 2022 2022 2022 Adjusted non-interest expense: Non-interest expense $ 49,328 $ 48,800 $ 50,500 $ 46,041 $ 43,585 Less: S
Slide 21: Non-GAAP Reconciliation (continued)
Non-GAAP Reconciliation (continued) As of or For the Three Months Ended Recast Recast June 30, March 31, December 31, September30, June 30, (dollars in thousands) 2023 2023 2022 2022 2022 Tangible common stockholders' equity: Total stockholders' equity $ 813,942 $ 795,650 $ 765,816 $ 735,805 $ 755,6
Slide 22: Non-GAAP Reconciliation (continued)
Non-GAAP Reconciliation (continued) As of or For the Three Months Ended Recast Recast Recast (dollars in thousands, except share and per share June 30, March 31, December 31, September 30, June 30, data, ratios annualized, where applicable) 2023 2023 2022 2022 2022 Pre-tax pre-provision return on av
Slide 23: Non-GAAP Reconciliation (continued)
Non-GAAP Reconciliation (continued) As of or For the Three Months Ended Recast Recast Recast June 30, March 31, December 31, September 30, June 30, 2023 2023 2022 2022 2022 Tangible common equity to tangible assets: Tangible common equity $ 657,965 $ 638,218 $ 606,929 $ 575,321 $ 593,554 Tangible as
Slide 24: OX
OX