Byline Bancorp, Inc. · NYSE:BY
Byline Bancorp — Q2 2022 Earnings Presentation
21 slides from Byline Bancorp's earnings presentation, Jul 28, 2022
Slide 1: Q2 2022 Conference Call
Exhibit 99.2 Q2 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: Second Quarter 2022 Highlights
Second Quarter 2022 Highlights Net income of $20.3 million, or $0.54 per diluted share, compared to $22.3 million, or $0.58 per diluted share, in 1Q22 $20.3 million Financial 2Q22 earnings impacted by $4.6 million loan servicing fair value mark, Net Income Performance negatively impacting dilute
Slide 4: Loan and Lease Trends
Loan and Lease Trends ($ in millions) Total Loans & Leases and Average Yield Total loans and leases were $5.2 billion at 2Q22, an increase of Year-over-Year Change, ex. PPP $356.8 million, or 29.6% annualized $1.2 Billion or 28.8% $443.0 million in loan and lease production, net of loan sales $5
Slide 5: Government-Guaranteed Lending
Government-Guaranteed Lending ($ in millions) A leading SBA 7(a) lender as of June 30, 2022 On Balance Sheet SBA 7(a) & USDA Loans #5 SBA 7(a) lender in the United States $ Balance % of Portfolio(2) #1 SBA 7(a) lender in Illinois Unguaranteed $377.2 7.3% #1 SBA 7(a) lender in Wisconsin Guara
Slide 6: Deposit Trends
Deposit Trends ($ in millions) Average Non-Interest Bearing Deposits Total deposits were $5.4 billion, down 2.6% from 1Q22 Year-over-Year Change Average non-interest-bearing deposits grew slightly linked $180.4MM or 8.6% quarter and remain stable at $2.3 billion $2,223 $2,248 $2,265 $2,085 $2,10
Slide 7: Net Interest Income and Net Interest Margin Trends
Net Interest Income and Net Interest Margin Trends Net interest income was $61.6 million, up 4.9% from 1Q22 Drivers of NIM Change Net interest margin decreased 5 basis points from 1Q22 to 3.76% Excluding accretion income, net interest margin decreased 3 basis points from 1Q22 Yield on loans
Slide 8: Well Positioned to Benefit from Higher Rates
Well Positioned to Benefit from Higher Rates Interest Rate Sensitivity Investment Portfolio Interest rate risk position remains asset sensitivity $1.3 billion portfolio (~99% Available for Sale); duration: 5.4 years 7.8% NII per +100 bps increase in rates(1) 2Q22 cash and securities / assets
Slide 9: Non-Interest Income Trends
Non-Interest Income Trends ($ in millions) Non-interest income was $14.2 million, a decrease of $5.3 million Total Non-Interest Income from 1Q22 1% $4.6 million loan servicing asset revaluation charge due to 6% 15% $21.0 higher discount rates $19.0 $19.4 $18.5 8% Lower premiums resulting in a
Slide 10: Non-Interest Expense Trends
Non-Interest Expense Trends ($ in millions) Non-interest expenses decreased to $43.8 million from $44.6 million in 1Q22, primarily attributable to: $1.3 million decrease in salaries and employee benefits mainly due to lower payroll taxes and higher deferred salary costs related to loan and lease
Slide 11: Asset Quality Trends
Asset Quality Trends ($ in millions) Non-performing assets to total assets increased to 0.54% in 2Q22 Net Charge-offs from 0.33% in 1Q22 $4.3 NPLs / total loans and leases increased from 0.42% in 1Q22 to 0.66% in 2Q22 $2.9 NCOs / average loans and leases were 24 bps in 2Q22, up from 5 bps in 1
Slide 12: Strong Capital Position and Focus on Return on Capital
Strong Capital Position and Focus on Return on Capital Capital Ratios Return on Average Tangible Common Equity 19.77% 15.74% 14.78% 14.70% 16.86% 13.72% 18.87% 16.38% 13.09% 14.36% 14.06% 16.22% 10.01% 9.89% 10.11% 14.36% 14.06% 9.36% 8.65% 10.94% Q2 2021 Q3 2021 Q4 2021 Q1 2022 Q2 2022 Q2 2021 Q3 2
Slide 13: 2022 Strategic Priorities and Near-Term Outlook
2022 Strategic Priorities and Near-Term Outlook Commercial banking focus through organic loan, lease and deposit growth Low to mid teen loan growth for 2022 Continue to identify opportunities to improve operating leverage Disciplined expense management Investing in digital capabilities and automatio
Slide 14: Appendix
Appendix @ Byline Bancorp, Inc:
Slide 15: Five Quarter Financial Summary
Five Quarter Financial Summary As of or For the Three Months Ended (dollars in thousands, except per share data) June 30, March 31, December 31, September 30, June 30, 2022 2022 2021 2021 2021 Income Statement Net interest income $ 61,627 $ 58,736 $ 61,728 $ 59,845 $ 58,174 Provision (recapture) for
Slide 16: Non-GAAP Reconciliation
Non-GAAP Reconciliation As of or For the Three Months Ended June 30, March 31, December 31, September 30, June 30, (dollars in thousands, except per share data) 2022 2022 2021 2021 2021 Net income and earnings per share excluding significant items Reported Net Income $ 20,283 $ 22,311 $ 17,189 $ 25,
Slide 17: Non-GAAP Reconciliation (continued)
Non-GAAP Reconciliation (continued) As of or For the Three Months Ended June 30, March 31, December 31, September 30, June 30, (dollars in thousands) 2022 2022 2021 2021 2021 Adjusted non-interest expense: Non-interest expense $ 43,773 $ 44,555 $ 58,968 $ 44,180 $ 42,981 Less: Significant items Impa
Slide 18: Non-GAAP Reconciliation (continued)
Non-GAAP Reconciliation (continued) As of or For the Three Months Ended June 30, March 31, December 31, September 30, June 30, (dollars in thousands) 2022 2022 2021 2021 2021 Tangible common stockholders' equity: Total stockholders' equity $ 765,161 $ 788,671 $ 836,382 $ 824,418 $ 817,073 Less: Pref
Slide 19: 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, December 31, September 30, June 30, data, ratios annualized, where applicable) 2022 2022 2021 2021 2021 Pre-tax pre-provision return on average assets: Pre-tax
Slide 20: Non-GAAP Reconciliation (continued)
Non-GAAP Reconciliation (continued) As of or For the Three Months Ended June 30, March 31, December 31, September 30, June 30, 2022 2022 2021 2021 2021 Adjusted return on average assets: Adjusted net income $ 20,283 $ 22,311 $ 26,261 $ 26,350 $ 29,905 Average total assets 6,975,725 6,705,986 6,699,0
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