Byline Bancorp, Inc. · NYSE:BY
Byline Bancorp — Q4 2023 Earnings Presentation
26 slides from Byline Bancorp's earnings presentation, Jan 26, 2024
Slide 1: 4Q23 Earnings Presentation
4Q23 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: Delivered Solid Full Year 2023 Results
Delivered Solid Full Year 2023 Results Performance Highlights Reported net income of $107.9 million, or diluted EPS of $2.67, on revenue of $386.9 million Solid adjusted PTPP ROA(1) of 2.35%, ROA(1) of 1.45%, ROTCE(1) of 17.76% Net interest margin expanded 31 basis points to 4.31% Delivered
Slide 4: Fourth Quarter 2023 Highlights
Fourth Quarter 2023 Highlights Net Income Diluted EPS PTPP ROAA $29.6 million $31.8 million $0.68 $0.73 2.13% 2.27% Reported Adjusted(1) Reported Adjusted(1) Reported(1)(2) Adjusted(1)(2) Efficiency Ratio ROAA ROTCE 51.63% 48.64% 1.34% 1.44% 16.68% 17.88% Reported Adjusted(1) Reported(2) Adjusted(1)
Slide 5: Loan and Lease Trends
Loan and Lease Trends ($ in millions) Total Loans & Leases and Average Yield Highlights $6,621 $6,702 Total loans and leases were $6.7 billion at 4Q23, an increase of $81.7 million, $5,469 $5,544 $5,597 or 4.9% annualized from 3Q23 7.68% 7.42% 7.18% Originated $240.6 million in new loans, net of
Slide 6: Government-Guaranteed Lending
Government-Guaranteed Lending ($ in millions) On Balance Sheet SBA 7(a) & USDA Loans Highlights $ Balance % of Portfolio A leading SBA 7(a) lender for Government Fiscal Year 2023 Unguaranteed $382.5 5.7% #5 SBA 7(a) lender in the United States Guaranteed 70.8 1.1% #1 SBA 7(a) and 504 lender in
Slide 7: Deposit Trends
Deposit Trends ($ in millions) Deposit Composition Highlights $5,695 $5,813 $5,917 $6,954 $7,177 Total deposits were $7.2 billion, up 12.8% annualized from 3Q23 2.8% 2.9% 3.6% 4.5% 5.1% Net deposit growth includes the redemption of $69.1 million in 13.4% 18.7% 20.5% 20.8% 21.2% brokered CDs 35.8
Slide 8: Net Interest Income and Net Interest Margin Trends
Net Interest Income and Net Interest Margin Trends ($ in millions) Net Interest Income Highlights $92,452 Net interest income was $86.3 million, down 6.7% from 3Q23 $86,285 $76,604 $75,718 $76,166 Net interest margin decreased 38 basis points from 3Q23 to 4.08% Full year NIM expanded 31 bps to
Slide 9: Non-Interest Income Trends
Non-Interest Income Trends ($ in millions) Total Non-Interest Income Highlights $15.1 Non-interest income was $14.5 million, up 17.2% from 3Q23 $14.3 $14.5 12% $12.4 Non-interest income levels excluding FV mark on loan servicing $11.5 12% 14% 6% 7% 11% 9% asset remained stable 15% 8% 8% 34% 40%
Slide 10: Non-Interest Expense Trends
Non-Interest Expense Trends ($ in millions) Non-Interest Expense Highlights $57.9 Non-interest expenses decreased to $53.6 million from $57.9 million in 3Q23, $53.6 $50.5 $48.8 $49.3 primarily driven by merger-related expenses taken in Q3 $3.0 million decrease in salaries and employee benefits
Slide 11: Asset Quality Trends
Asset Quality Trends ($ in millions) Net Charge-offs Allowance for Credit Losses (ACL) $12.2 $105.7 $101.7 $90.5 $92.7 $81.9 0.73% $5.4 $4.3 1.64% 1.66% $3.2 1.60% $1.2 0.31% 0.33% 1.51% 1.52% 0.24% 0.09% Q4 2022 Q1 2023 Q2 2023 Q3 2023 Q4 2023 Q4 2022 Q1 2023 Q2 2023 Q3 2023 Q4 2023 Net charge-offs
Slide 12: Strong Liquidity and Securities Portfolio
Strong Liquidity and Securities Portfolio Liquidity Position Highlights Cash and cash equivalents of $226.1 million HTM portfolio of $1.2 million ($8,000 in unrealized losses) $1.4 billion investment portfolio (~99.9% AFS) Securities portfolio duration: 4.8 years; net of hedges: ~4.3 years
Slide 13: Strong Capital Position
Strong Capital Position Capital Ratios Return on Average Tangible Common Equity 18.95% 17.75% 17.50% 17.89% 13.52% 16.49% 13.00% 13.19% 13.17% 13.38% 17.21% 16.78% 16.68% 16.20% 16.15% 8.42% 8.66% 8.87% 9.06% 8.18% Q4 2022 Q1 2023 Q2 2023 Q3 2023 Q4 2023 Q4 2022 Q1 2023 Q2 2023 Q3 2023 Q4 2023 (1) (
Slide 14: Our Strategy Remains Consistent
Our Strategy Remains Consistent Grow our Commercial Differentiated approach to grow loans and deposits organically in targeted 1 Client Franchise market segments Maintain Balance Sheet 2 Maintain a strong balance sheet, ample capital flexibility and strong asset quality Strength Continue to Invest i
Slide 15: 4Q23 Appendix
4Q23 Earnings Presentation Appendix
Slide 16: 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) ~73% of Total Deposits are FDIC Insured $3.9 billion at 12/31/23 Total Franchise Customer Base 48 ~
Slide 17: CRE Portfolio: NOO Office Represents 3.3% of Total Loans
CRE Portfolio: NOO Office Represents 3.3% of Total Loans Non-Owner Occupied Office CRE Non-Owner Occupied Commercial Real Estate Portfolio 3.3% ($ in millions) 12/31/23 % of Total Loans Industrial / Warehouse $582.6 8.7% Total Loans & Leases Non-Office d $6.7 Billion CRE Multi-family 570.2 8.5% as o
Slide 18: Office CRE Portfolio: Diversified Tenants and Markets
Office CRE Portfolio: Diversified Tenants and Markets Office Portfolio CRE Office: Geographic Mix by State Office Portfolio Metrics Tenant Classification ($ in millions) 12/31/23 12/31/23 9/30/23 Illinois $138.4 Avg. Commitment $3.6 million $3.4 million Single Tenant 16% North Carolina 26.0 Multi-Te
Slide 19: Projected Acquisition Accounting Accretion
Projected Acquisition Accounting Accretion Projected Accretion(1) ($ in millions) $3.0 $2.6 $2.4 $2.1 $1.7 Q1 2024 E Q2 2024 E Q3 2024 E Q4 2024 E Q1 2025 E Non-PCD PCD (1) Projections are updated quarterly, assumes no prepayments and are subject to change. 19
Slide 20: Financial Summary
Financial Summary As of or For the Three Months Ended As of or For the Year Ended (dollars in thousands, except per share data) December 31, September 30, December 31, December 31, December 31, 2023 2023 2022 2023 2022 Income Statement Net interest income $ 86,285 $ 92,452 $ 76,604 $ 330,621 $ 265,3
Slide 21: Non-GAAP Reconciliation
Non-GAAP Reconciliation As of or For the Three Months Ended As of or For the Year Ended December 31, September 30, December 31, December 31, December 31, (dollars in thousands, except per share data) 2023 2023 2022 2023 2022 Net income and earnings per share excluding significant items Reported Net
Slide 22: Non-GAAP Reconciliation (continued)
Non-GAAP Reconciliation (continued) As of or For the Three Months Ended As of or For the Year Ended December 31, September 30, December 31, December 31, December 31, (dollars in thousands) 2023 2023 2022 2023 2022 Adjusted non-interest expense: Non-interest expense $ 53,584 $ 57,891 $ 50,500 $ 209,6
Slide 23: Non-GAAP Reconciliation (continued)
Non-GAAP Reconciliation (continued) As of or For the Three Months Ended As of or For the Year Ended December 31, September 30, December 31, December 31, December 31, (dollars in thousands) 2023 2023 2022 2023 2022 Tangible common stockholders' equity: Total stockholders' equity $ 990,151 $ 919,945 $
Slide 24: Non-GAAP Reconciliation (continued)
Non-GAAP Reconciliation (continued) As of or For the Three Months Ended As of or For the Year Ended (dollars in thousands, except share and per share December 31, September 30, December 31, December 31, December 31, data, ratios annualized, where applicable) 2023 2023 2022 2023 2022 Pre-tax pre-prov
Slide 25: Non-GAAP Reconciliation (continued)
Non-GAAP Reconciliation (continued) As of or For the Three Months Ended As of or For the Year Ended December 31, September 30, December 31, December 31, December 31, 2023 2023 2022 2023 2022 Tangible common equity to tangible assets: Tangible common equity $ 786,673 $ 714,917 $ 606,929 $ 786,673 $ 6
Slide 26: OX
OX