Byline Bancorp, Inc. · NYSE:BY
Byline Bancorp — Q3 2023 Earnings Presentation
25 slides from Byline Bancorp's earnings presentation, Oct 27, 2023
Slide 1: 3Q23 Earnings Presentation
3Q23 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: Third Quarter 2023 Highlights
Third Quarter 2023 Highlights Net Income Diluted EPS PTPP ROAA(1) $28.2 million $33.3 million $0.65 $0.77 2.16% 2.46% Reported Adjusted(1) Reported Adjusted(1) Reported Adjusted Efficiency Ratio ROAA ROTCE(1) 53.75% 47.35% 1.30% 1.53% 16.15% 18.95% Reported Adjusted(1) Reported Adjusted(1) Reported
Slide 4: Loan and Lease Trends
Loan and Lease Trends ($ in millions) Total Loans & Leases and Average Yield Highlights $6,621 Total loans and leases were $6.6 billion at 3Q23, an increase of $1.0 billion $5,469 $5,544 $5,597 from the end of the prior quarter $5,309 7.68% 7.18% Originated $310.9 million in new loans, net of lo
Slide 5: Government-Guaranteed Lending
Government-Guaranteed Lending ($ in millions) On Balance Sheet SBA 7(a) & USDA Loans Highlights $ Balance % of Portfolio A leading SBA 7(a) lender for Government Fiscal Year 2023 Unguaranteed $380.2 5.7% #5 SBA 7(a) lender in the United States Guaranteed 81.5 1.2% #1 SBA 7(a) and 504 lender in
Slide 6: Deposit Trends
Deposit Trends ($ in millions) Deposit Composition Highlights $5,612 $5,695 $5,813 $5,917 $6,954 Total deposits increased $1.0 billion to $7.0 billion 2.0% 2.8% 2.9% 3.6% 4.5% 10.4% 13.4% Deposits excluding the acquisition increased $74.4 million, 18.7% 20.5% 20.8% or 5.8% annualized 38.4% 35.8%
Slide 7: Net Interest Income and Net Interest Margin Trends
Net Interest Income and Net Interest Margin Trends ($ in millions) Net Interest Income Highlights $92,452 Net interest income was $92.5 million, up 21.4% from 2Q23 $76,604 $75,718 $76,166 Net interest margin increased 14 basis points from 2Q23 to 4.46% $68,635 Loan and lease yield of 7.68%, up
Slide 8: Non-Interest Income Trends
Non-Interest Income Trends ($ in millions) Total Non-Interest Income Highlights $15.1 Non-interest income was $12.4 million, a decrease of $1.9 million from 2Q23 $14.3 12% $12.4 $3.6 million FV mark on loan servicing asset charge due to higher $12.0 $11.5 12% 6% 7% 11% 10% 15% discount rates and
Slide 9: Non-Interest Expense Trends
Non-Interest Expense Trends ($ in millions) Non-Interest Expense Highlights $57.9 Non-interest expenses increased to $57.9 million from $49.3 million in 2Q23, $50.5 $48.8 $49.3 primarily due to merger-related expenses $46.0 $5.3 million in higher salaries and employee benefits $2.2 million inc
Slide 10: Asset Quality Trends
Asset Quality Trends ($ in millions) Net Charge-offs Allowance for Credit Losses (ACL) $105.7 $5.4 $92.7 $90.5 $4.3 $79.7 $81.9 $3.2 1.66% $1.8 1.64% 0.31% 0.33% 1.60% $1.2 0.24% 1.51% 1.51% 0.14% 0.09% Q3 2022 Q4 2022 Q1 2023 Q2 2023 Q3 2023 Q3 2022 Q4 2022 Q1 2023 Q2 2023 Q3 2023 Net charge-offs o
Slide 11: Strong Liquidity and Securities Portfolio
Strong Liquidity and Securities Portfolio Liquidity Position Highlights Cash and cash equivalents of $428.9 million HTM portfolio of $1.2 million ($24,000 in unrealized losses) $1.2 billion investment portfolio (~99.3% AFS) Securities portfolio duration: 5.1 years; net of hedges: ~4.5 years
Slide 12: Strong Capital Position
Strong Capital Position Capital Ratios Return on Average Tangible Common Equity 18.95% 17.75% 17.50% 13.52% 16.49% 13.02% 13.00% 13.19% 13.17% 14.17% 17.21% 16.20% 16.78% 16.15% 8.87% 14.17% 8.10% 8.42% 8.66% 8.18% Q3 2022 Q4 2022 Q1 2023 Q2 2023 Q3 2023 Q3 2022 Q4 2022 Q1 2023 Q2 2023 Q3 2023 (1) (
Slide 13: 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 14: 3Q23 Appendix
3Q23 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) ~74% of Total Deposits are FDIC Insured $3.8 billion at 9/30/23 Total Franchise Customer Base 48 ~1
Slide 16: CRE Portfolio: NOO Office Represents 3.4% of Total Loans
CRE Portfolio: NOO Office Represents 3.4% of Total Loans Non-Owner Occupied Commercial Real Estate Portfolio Owner Occupied CRE 5.0% ($ in millions) 9/30/23 % of Total Loans Non-Owner Occupied Office CRE Multi-family $555.8 8.4% 3.4% Industrial /Warehouse 545.9 8.3% Retail 252.6 3.8% Total Loans & L
Slide 17: Office CRE Portfolio: Diversified Tenants and Markets
Office CRE Portfolio: Diversified Tenants and Markets Office Portfolio CRE Office: Geographic Mix by State Office Portfolio Metrics Tenant Classification ($ in millions) 9/30/23 9/30/23 6/30/23 Illinois $141.4 Avg. Commitment $3.4 million $3.6 million Single Tenant 16% North Carolina 26.0 Multi-Tena
Slide 18: Projected Acquisition Accounting Accretion
Projected Acquisition Accounting Accretion Projected Accretion(1) ($ in millions) 3.7 3.1 2.7 2.4 2.1 Q4 2023 E Q1 2024 E Q2 2024 E Q3 2024 E Q4 2024 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 Recast (dollars in thousands, except per share data) September 30, June 30, September 30, 2023 2023 2022 Income Statement Net interest income $ 92,452 $ 76,166 $ 68,635 Provision for credit losses 8,803 5,790 7,208 Non-interest income 12,376 14,2
Slide 20: Non-GAAP Reconciliation
Non-GAAP Reconciliation As of or For the Three Months Ended Recast September 30, June 30, September 30, (dollars in thousands, except per share data) 2023 2023 2022 Net income and earnings per share excluding significant items Reported Net Income $ 28,222 $ 26,107 $ 20,409 Significant items: Impairm
Slide 21: Non-GAAP Reconciliation (continued)
Non-GAAP Reconciliation (continued) As of or For the Three Months Ended Recast (dollars in thousands) September 30, June 30, September 30, 2023 2023 2022 Adjusted non-interest expense: Non-interest expense $ 57,891 $ 49,328 $ 46,041 Less: Significant items Impairment charges on ROU asset 394 — — Mer
Slide 22: Non-GAAP Reconciliation (continued)
Non-GAAP Reconciliation (continued) As of or For the Three Months Ended Recast September 30, June 30, September 30, (dollars in thousands) 2023 2023 2022 Tangible common stockholders' equity: Total stockholders' equity $ 919,945 $ 813,942 $ 735,805 Less: Goodwill and other intangibles 205,028 155,97
Slide 23: Non-GAAP Reconciliation (continued)
Non-GAAP Reconciliation (continued) As of or For the Three Months Ended Recast (dollars in thousands, except share and per share September 30, June 30, September 30, data, ratios annualized, where applicable) 2023 2023 2022 Pre-tax pre-provision return on average assets: Pre-tax pre-provision net in
Slide 24: Non-GAAP Reconciliation (continued)
Non-GAAP Reconciliation (continued) As of or For the Three Months Ended Recast September 30, June 30, September 30, 2023 2023 2022 Tangible common equity to tangible assets: Tangible common equity $ 714,917 $ 657,965 $ 575,321 Tangible assets 8,738,340 7,419,713 7,106,793 Tangible common equity to t
Slide 25: OX
OX