Byline Bancorp, Inc. · NYSE:BY
Byline Bancorp — Q3 2022 Earnings Presentation
20 slides from Byline Bancorp's earnings presentation, Oct 27, 2022
Slide 1: Q3 2022 Conference Call
Exhibit 99.2 Q3 2022 Conference Call
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 2022 Highlights
Third Quarter 2022 Highlights Net income of $22.7 million, or $0.61 per diluted share, up 12% compared to 2Q22 Pre-Tax Pre-Provision net income(1) of $34.7 million $22.7 million Financial Net Income Pre-Tax Pre-Provision ROAA(1) of 1.93% Performance Strong ROAA of 1.26% and ROTCE(1) of 15.40
Slide 4: Loan and Lease Trends
Loan and Lease Trends ($ in millions) Total Loans & Leases and Average Yield Total loans and leases were $5.3 billion at 3Q22, an increase of Year-over-Year Change(1) $124.1 million, or 9.5% annualized $917.9MM or 20.9% Originated $303.2 million in new loans, net of loan sales in $5,185 $5,309 $
Slide 5: Government-Guaranteed Lending
Government-Guaranteed Lending ($ in millions) A leading SBA 7(a) lender as of September 30, 2022 On Balance Sheet SBA 7(a) & USDA Loans #5 SBA 7(a) lender in the United States $ Balance % of Portfolio #1 SBA 7(a) lender in Illinois Unguaranteed $375.0 7.1% #1 SBA 7(a) lender in Wisconsin Gua
Slide 6: Deposit Trends
Deposit Trends ($ in millions) Average Non-Interest Bearing Deposits Total deposits increased $224.1 million, or 16.5% annualized, Year-over-Year Change to $5.6 billion $92.1MM or 4.4% Strong deposit inflows of interest-bearing and money $2,223 $2,248 $2,265 $2,198 $2,106 market accounts Maint
Slide 7: Net Interest Income and Net Interest Margin Trends
Net Interest Income and Net Interest Margin Trends Net interest income was $68.9 million, up 11.8% from 2Q22 NIM Bridge Net interest margin increased 28 basis points from 2Q22 to 4.04% Loan and lease yield of 5.54%, up 76 basis points from 2Q22 Interest Rate Sensitivity Interest rate risk po
Slide 8: Non-Interest Income Trends
Non-Interest Income Trends ($ in millions) Non-interest income was $12.0 million, a decrease of $2.2 million Total Non-Interest Income from 2Q22 10% Lower volume of loans sold coupled with lower average 18% 8% net premiums drove a decrease in gains on sale income $18.5 $19.0 $19.4 9% Net loan
Slide 9: Non-Interest Expense Trends
Non-Interest Expense Trends ($ in millions) Non-interest expenses increased to $46.2 million from $43.8 million in 2Q22, primarily attributable to: $1.9 million in higher salaries and employee benefits mainly due to increased compensation-related expenses Increase in legal, audit and other pro
Slide 10: Asset Quality Trends
Asset Quality Trends ($ in millions) Non-performing assets to total assets was 0.54%, flat from 2Q22 Net Charge-offs NPLs / total loans and leases of 0.67% in 3Q22 $4.3 NCOs / average loans and leases were 15 bps in 3Q22, down from 24 bps in 2Q22 $2.9 $2.0 ALLL / loans and leases was 1.23% i
Slide 11: Strong Liquidity and Capital Position
Strong Liquidity and Capital Position Capital Ratios $2.0 billion of available on balance sheet liquidity 14.78% 14.70% Cash and cash equivalents of $216.3 million 13.72% 13.09% 13.02% Loans/Deposits declined to 94.6% 10.11% 9.89% 9.36% 8.65% 8.25% $1.4 billion investment portfolio (~99.7% A
Slide 12: 2022 Strategic Priorities and Near-Term Outlook
2022 Strategic Priorities and Near-Term Outlook Commercial banking strategy focused on organic loan and deposit growth Disciplined loan and deposit pricing Investing in digital capabilities and automation Maintain credit discipline and strong asset quality Opportunistic M&A and talent additions Main
Slide 13: Appendix
Appendix @ Byline Bancorp, Inc:
Slide 14: Five Quarter Financial Summary
Five Quarter Financial Summary As of or For the Three Months Ended September 30, June 30, March 31, December 31, September 30, (dollars in thousands, except per share data) 2022 2022 2022 2021 2021 Income Statement Net interest income $ 68,875 $ 61,627 $ 58,736 $ 61,728 $ 59,845 Provision (recapture
Slide 15: Non-GAAP Reconciliation
Non-GAAP Reconciliation As of or For the Three Months Ended September 30, June 30, March 31, December 31, September 30, (dollars in thousands, except per share data) 2022 2022 2022 2021 2021 Net income and earnings per share excluding significant items Reported Net Income $ 22,656 $ 20,283 $ 22,311
Slide 16: Non-GAAP Reconciliation (continued)
Non-GAAP Reconciliation (continued) As of or For the Three Months Ended September 30, June 30, March 31, December 31, September 30, (dollars in thousands) 2022 2022 2022 2021 2021 Adjusted non-interest expense: Non-interest expense $ 46,178 $ 43,773 $ 44,555 $ 58,968 $ 44,180 Less: Significant items
Slide 17: Non-GAAP Reconciliation (continued)
Non-GAAP Reconciliation (continued) As of or For the Three Months Ended September 30, June 30, March 31, December 31, September 30, (dollars in thousands) 2022 2022 2022 2021 2021 Tangible common stockholders' equity: Total stockholders' equity $ 747,565 $ 765,161 $ 788,671 $ 836,382 $ 824,418 Less:
Slide 18: Non-GAAP Reconciliation (continued)
Non-GAAP Reconciliation (continued) As of or For the Three Months Ended (dollars in thousands, except share and per share September 30, June 30, March 31, December 31, September 30, data, ratios annualized, where applicable) 2022 2022 2022 2021 2021 Pre-tax pre-provision return on average assets: Pr
Slide 19: Non-GAAP Reconciliation (continued)
Non-GAAP Reconciliation (continued) As of or For the Three Months Ended September 30, June 30, March 31, December 31, September 30, 2022 2022 2022 2021 2021 Tangible common equity to tangible assets: Tangible common equity $ 587,081 $ 603,067 $ 624,709 $ 660,386 $ 646,684 Tangible assets 7,117,103 6
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