Byline Bancorp, Inc. · NYSE:BY
Byline Bancorp — Q3 2024 Earnings Presentation
25 slides from Byline Bancorp's earnings presentation, Oct 25, 2024
Slide 1: 3Q24 Earnings Presentation
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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 2024 Highlights
Third Quarter 2024 Highlights Net Income Diluted EPS PTPP ROAA $30.3 million $30.7 million $0.69 $0.70 2.02% 2.03% Reported Adjusted(1) Reported Adjusted(1) Reported(1)(2) Adjusted(1)(2) Efficiency Ratio ROAA ROTCE 52.02% 51.62% 1.29% 1.30% 14.49% 14.67% Reported Adjusted(1) Reported(2) Adjusted(1)(
Slide 4: Loan Portfolio Trends
Loan Portfolio Trends ($ in millions) Total Loan Portfolio and Average Yield Highlights Total loan portfolio stood at $6.9 billion, flat from 2Q24 $6,702 $6,802 $6,905 $6,899 $6,621 Originated $212.2 million in new loans, net of loan sales in 3Q24 Production driven by commercial banking and le
Slide 5: Deposit Trends
Deposit Trends ($ in millions) Deposit Composition Highlights $6,954 $7,177 $7,350 $7,347 $7,498 Total deposits were $7.5 billion, up 8.2% annualized from 2Q24 4.5% 5.1% 5.8% 5.8% 6.2% Commercial deposits accounted for 47.7% of total deposits and represent 20.8% 21.2% 21.7% 21.9% 21.9% 76.8% of
Slide 6: Net Interest Income and Net Interest Margin Trends
Net Interest Income and Net Interest Margin Trends ($ in millions) Net Interest Income Highlights $92,452 Net interest income was $87.5 million, up 1.1% from 2Q24 $86,285 $85,541 $86,526 $87,455 Increase in NII driven by higher loan and securities yields Net interest margin decreased 10 basis
Slide 7: Non-Interest Income Trends
Non-Interest Income Trends ($ in millions) Total Non-Interest Income Highlights $15.5 Non-interest income was $14.4 million, up 12.0% from 2Q24 $14.5 $14.4 $12.4 17% $12.8 Increase in Other due to increased swap income fee activity 14% 18% 11% 9% 7% 11% 8% 7% 8% $5.9 million in gain on sale, d
Slide 8: Non-Interest Expense Trends
Non-Interest Expense Trends ($ in millions) Non-Interest Expense Highlights $57.9 Non-interest expenses stood at $54.3 million, up 2.1% from 2Q24 and reflects: $53.6 $53.8 $53.2 $54.3 $1.1 million increase in salaries and employee benefits $0.4 million increase related to acquisition activitie
Slide 9: Asset Quality Trends
Asset Quality Trends ($ in millions) Net Charge-offs Allowance for Credit Losses (ACL) $12.2 $105.7 $1.2 $101.7 $102.4 $99.7 $9.5 $98.4 $8.5 0.73% $2.4 $6.2 $5.4 0.56% 0.49% $11.0 1.60% 0.37% $9.5 0.33% $6.0 1.52% 1.51% $6.1 $5.4 1.45% 1.44% Q3 2023 Q4 2023 Q1 2024 Q2 2024 Q3 2024 Q3 2023 Q4 2023 Q1
Slide 10: Strong Liquidity and Securities Portfolio
Strong Liquidity and Securities Portfolio Liquidity Position Highlights Cash and cash equivalents $452.6 million, down by $277.9 million from 2Q24 Securities portfolio duration: 4.6 years; net of hedges: ~4.3 years primarily due to repayment of term funding facility Securities portfolio annual
Slide 11: Strong Capital Position
Strong Capital Position Capital Ratios Return on Average Tangible Common Equity 18.95% 17.89% 13.86% 14.41% 13.17% 13.38% 13.66% 15.95% 15.27% 14.67% 16.15% 16.68% 15.88% 9.72% 15.27% 14.49% 9.06% 8.76% 8.82% 8.18% Q3 2023 Q4 2023 Q1 2024 Q2 2024 Q3 2024 Q3 2023 Q4 2023 Q1 2024 Q2 2024 Q3 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: 3Q24 Appendix
3Q24 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) ~70% of Total Deposits are FDIC Insured $4.1 billion at 9/30/24 Total Franchise Customer Base 46 ~1
Slide 15: CRE Portfolio: NOO Office Represents 2.6% of Total Loans
CRE Portfolio: NOO Office Represents 2.6% of Total Loans Non-Owner Occupied Commercial Real Estate Portfolio NOO Office CRE ($ in millions) 9/30/24 % of Total Loans 2.6% Industrial / Warehouse $625.7 9.1% Multi-family 492.9 7.2% Retail 213.8 3.1% Total Loans & Leases NOO Non-Office CRE Office 180.3
Slide 16: Office CRE Portfolio: Diversified Tenants and Markets
Office CRE Portfolio: Diversified Tenants and Markets Office Portfolio CRE Office: Geographic Mix by State Office Portfolio Metrics Tenant Classification ($ in millions) 9/30/24 9/30/24 6/30/24 Illinois $112.2 Avg. Commitment $3.6 million $3.6 million Single Tenant 17% North Carolina 24.3 Multi-Tena
Slide 17: Unguaranteed Government-Guaranteed Exposure Represents 6.0% of Total Loans
Unguaranteed Government-Guaranteed Exposure Represents 6.0% of Total Loans ($ 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 $382.7 5.5% Top Illinois SBA 7(a) lender for
Slide 18: Projected Acquisition Accounting Accretion
Projected Acquisition Accounting Accretion Projected Accretion(1) ($ in millions) $1.8 $1.7 $1.5 $1.4 $1.4 Q4 2024 E Q1 2025 E Q2 2025 E Q3 2025 E Q4 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 September 30, June 30, September 30, (dollars in thousands, except per share data) 2024 2024 2023 Income Statement Net interest income $ 87,455 $ 86,526 $ 92,452 Provision for credit losses 7,475 6,045 8,803 Non-interest income 14,385 12,844 12,3
Slide 20: Non-GAAP Reconciliation
Non-GAAP Reconciliation As of or For the Three Months Ended September 30, June 30, September 30, (dollars in thousands, except per share data) 2024 2024 2023 Net income and earnings per share excluding significant items Reported Net Income $ 30,328 $ 29,671 $ 28,222 Significant items: Impairment cha
Slide 21: Non-GAAP Reconciliation (continued)
Non-GAAP Reconciliation (continued) As of or For the Three Months Ended September 30, June 30, September 30, (dollars in thousands) 2024 2024 2023 Adjusted non-interest expense: Non-interest expense $ 54,327 $ 53,210 $ 57,891 Less: Significant items Impairment charges on ROU assets — — 394 Merger-re
Slide 22: Non-GAAP Reconciliation (continued)
Non-GAAP Reconciliation (continued) As of or For the Three Months Ended September 30, June 30, September 30, (dollars in thousands) 2024 2024 2023 Tangible common stockholders' equity: Total stockholders' equity $ 1,096,312 $ 1,033,014 $ 919,945 Less: Goodwill and other intangibles 199,443 200,788 2
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 September 30, June 30, September 30, data, ratios annualized, where applicable) 2024 2024 2023 Pre-tax pre-provision return on average assets: Pre-tax pre-provision net income $
Slide 24: Non-GAAP Reconciliation (continued)
Non-GAAP Reconciliation (continued) As of or For the Three Months Ended September 30, June 30, September 30, (dollars in thousands, except share and per share data) 2024 2024 2023 Tangible common equity to tangible assets: Tangible common equity $ 896,869 $ 832,226 $ 714,917 Tangible assets 9,224,87
Slide 25: Cael
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