Byline Bancorp, Inc. · NYSE:BY
Byline Bancorp — Q2 2024 Earnings Presentation
25 slides from Byline Bancorp's earnings presentation, Jul 26, 2024
Slide 1: 2Q24 Earnings Presentation
2Q24 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 2024 Highlights
Second Quarter 2024 Highlights Net Income Diluted EPS PTPP ROAA $29.7 million $0.68 2.03% Reported Reported Reported(1)(2) Efficiency Ratio ROAA ROTCE 52.19% 1.31% 15.27% Reported Reported(2) Reported(1)(2) Strong Financial Performance Net Income of $29.7 million; GAAP EPS of $0.68 Net interest
Slide 4: Loan Portfolio Trends
Loan Portfolio Trends ($ in millions) Total Loan Portfolio and Average Yield Highlights Total loan portfolio was $6.9 billion at 2Q24, an increase of $102.8 million, $6,702 $6,802 $6,905 $6,621 or 6.1% annualized from 1Q24 $5,597 Originated $300.0 million in new loans, net of loan sales in 2Q24
Slide 5: Deposit Trends
Deposit Trends ($ in millions) Deposit Composition Highlights $5,917 $6,954 $7,177 $7,350 $7,347 Total deposits stood at $7.3 billion, flat from 1Q24 3.6% 4.5% 5.1% 5.8% 5.8% Effective balance sheet management and stabilizing deposit trends 20.5% 20.8% 21.2% 21.7% 21.9% Commercial deposits acc
Slide 6: Net Interest Income and Net Interest Margin Trends
Net Interest Income and Net Interest Margin Trends ($ in millions) Net Interest Income Highlights $92,452 Net interest income was $86.5 million, up 1.2% from 1Q24 $86,285 $85,541 $86,526 $76,166 Increase in NII driven by higher loan and securities yields Net interest margin decreased 2 basis p
Slide 7: Non-Interest Income Trends
Non-Interest Income Trends ($ in millions) Total Non-Interest Income Highlights $15.5 Non-interest income was $12.8 million, down 17.0% from 1Q24 $14.3 $14.5 $12.4 17% $12.8 $2.5 million FV mark on loan servicing asset charge due to a 12% 14% 7% 11% 9% 7% 11% decrease in loans serviced 8% 7% 40%
Slide 8: Non-Interest Expense Trends
Non-Interest Expense Trends ($ in millions) Non-Interest Expense Highlights $57.9 Non-interest expenses stood at $53.2 million, down 1.1% from 1Q24 and reflects: $53.6 $53.8 $53.2 $49.3 $0.9 million decrease in other NIE primarily due to branch consolidation charges taken in 1Q24 $0.6 million
Slide 9: Asset Quality Trends
Asset Quality Trends ($ in millions) Net Charge-offs Allowance for Credit Losses (ACL) $12.2 $105.7 $1.2 $101.7 $102.4 $9.5 $99.7 0.73% $92.7 $6.2 $5.4 0.56% $4.3 $11.0 1.66% $9.5 1.60% 0.33% 0.37% 0.31% 1.52% 1.51% $6.1 $5.4 1.45% $4.3 Q2 2023 Q3 2023 Q4 2023 Q1 2024 Q2 2024 Q2 2023 Q3 2023 Q4 2023
Slide 10: Strong Liquidity and Securities Portfolio
Strong Liquidity and Securities Portfolio Liquidity Position Highlights Cash and cash equivalents of $730.5 million HTM portfolio of ~$0.6 million ($5,000 in unrealized losses) $1.4 billion investment portfolio (~99.9% AFS) Securities portfolio duration: 4.8 years; net of hedges: ~4.5 years
Slide 11: Strong Capital Position
Strong Capital Position Capital Ratios Return on Average Tangible Common Equity 18.95% 17.50% 17.89% 13.52% 13.38% 13.66% 13.86% 15.95% 13.17% 15.27% 16.78% 16.15% 16.68% 15.88% 15.27% 8.87% 9.06% 8.76% 8.82% 8.18% Q2 2023 Q3 2023 Q4 2023 Q1 2024 Q2 2024 Q2 2023 Q3 2023 Q4 2023 Q1 2024 Q2 2024 (1) (
Slide 12: 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 13: 2Q24 Appendix
2Q24 Earnings Presentation Appendix
Slide 14: 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) ~72% of Total Deposits are FDIC Insured $4.0 billion at 6/30/24 Total Franchise Customer Base 46 ~1
Slide 15: CRE Portfolio: NOO Office Represents 2.9% of Total Loans
CRE Portfolio: NOO Office Represents 2.9% of Total Loans Non-Owner Occupied Commercial Real Estate Portfolio NOO Office CRE ($ in millions) 6/30/24 % of Total Loans 2.9% Industrial / Warehouse $609.9 8.9% Multi-family 527.3 7.7% Retail 227.7 3.3% Total Loans & Leases NOO Non-Office CRE Office 196.7
Slide 16: Office CRE Portfolio: Diversified Tenants and Markets
Office CRE Portfolio: Diversified Tenants and Markets Office Portfolio CRE Office: Geographic Mix by State Office Portfolio Metrics Tenant Classification ($ in millions) 6/30/24 6/30/24 3/31/24 Illinois $121.8 Single Tenant Avg. Commitment $3.6 million $3.6 million 16% North Carolina 24.4 Multi-Tena
Slide 17: Unguaranteed Government-Guaranteed Exposure Represents 6.1% of Total Loans
Unguaranteed Government-Guaranteed Exposure Represents 6.1% of Total Loans ($ in millions) On Balance Sheet SBA 7(a) & USDA Loans Highlights ($ in millions) $ Balance % of Portfolio One of the top SBA and USDA lenders in the United States Unguaranteed $377.6 5.6% Closed $87.6 million in SBC loan
Slide 18: Projected Acquisition Accounting Accretion
Projected Acquisition Accounting Accretion Projected Accretion(1) ($ in millions) $2.1 $1.8 $1.7 $1.6 $1.4 Q3 2024 E Q4 2024 E Q1 2025 E Q2 2025 E Q3 2025 E Non-PCD PCD (1) Projections are updated quarterly, assumes no prepayments and are subject to change. 18
Slide 19: Financial Summary
Financial Summary As of or For the Three Months Ended (dollars in thousands, except per share data) June 30, March 31, June 30, 2024 2024 2023 Income Statement Net interest income $ 86,526 $ 85,541 $ 76,166 Provision for credit losses 6,045 6,643 5,790 Non-interest income 12,844 15,473 14,291 Non-in
Slide 20: Non-GAAP Reconciliation
Non-GAAP Reconciliation As of or For the Three Months Ended June 30, March 31, June 30, (dollars in thousands, except per share data) 2024 2024 2023 Net income and earnings per share excluding significant items Reported Net Income $ 29,671 $ 30,440 $ 26,107 Significant items: Impairment charges on R
Slide 21: Non-GAAP Reconciliation (continued)
Non-GAAP Reconciliation (continued) As of or For the Three Months Ended June 30, March 31, June 30, (dollars in thousands) 2024 2024 2023 Adjusted non-interest expense: Non-interest expense $ 53,210 $ 53,809 $ 49,328 Less: Significant items Impairment charges on ROU assets — 194 — Merger-related exp
Slide 22: Non-GAAP Reconciliation (continued)
Non-GAAP Reconciliation (continued) As of or For the Three Months Ended June 30, March 31, June 30, (dollars in thousands) 2024 2024 2023 Tangible common stockholders' equity: Total stockholders' equity $ 1,033,014 $ 1,009,049 $ 813,942 Less: Goodwill and other intangibles 200,788 202,133 155,977 Ta
Slide 23: Non-GAAP Reconciliation (continued)
Non-GAAP Reconciliation (continued) As of or For the Three Months Ended (dollars in thousands, except share and per share June 30, March 31, June 30, data, ratios annualized, where applicable) 2024 2024 2023 Pre-tax pre-provision return on average assets: Pre-tax pre-provision net income $ 46,160 $
Slide 24: Non-GAAP Reconciliation (continued)
Non-GAAP Reconciliation (continued) As of or For the Three Months Ended June 30, March 31, June 30, 2024 2024 2023 (dollars in thousands, except share and per share data) Tangible common equity to tangible assets: Tangible common equity $ 832,226 $ 806,916 $ 657,965 Tangible assets 9,433,027 9,208,3
Slide 25: OX
OX