Byline Bancorp, Inc. · NYSE:BY
Byline Bancorp — Q1 2023 Earnings Presentation
24 slides from Byline Bancorp's earnings presentation, Apr 28, 2023
Slide 1: 1Q23 Earnings Presentation
1Q23 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: First Quarter 2023 Highlights
First Quarter 2023 Highlights Net Income & EPS PTPP ROAA & ROTCE(1) $23.9 million $42.1 million 1.32% ROAA $0.64 per diluted share 2.32% PTPP ROA 16.20% ROTCE Driving Organic Growth & Profitability Stable Deposit Base & Strong Liquidity Disciplined Credit & Capital Profile Revenue up 17% YoY; Pre-
Slide 4: Loan and Lease Trends
Loan and Lease Trends ($ in millions) Total Loans & Leases and Average Yield Highlights $5,469 $5,544 Total loans and leases were $5.5 billion at 1Q23, an increase of $74.6 million, $5,185 $5,309 $4,827 or 5.5% annualized Total Loans and Leases % change Originated $249.4 million in new loans, ne
Slide 5: Government-Guaranteed Lending
Government-Guaranteed Lending ($ in millions) On Balance Sheet SBA 7(a) & USDA Loans Highlights $ Balance % of Portfolio A leading SBA 7(a) lender as of March 31, 2023 Unguaranteed $376.5 6.8% Closed $71.2 million loan commitments in 1Q23 Guaranteed 99.4 1.8% SBA 7(a) portfolio $475.9 million,
Slide 6: Deposit Trends
Deposit Trends ($ in millions) Deposit Composition Highlights Total deposits were $5.8 billion, up 8.4% annualized from 4Q22 $5,530 $5,388 $5,612 $5,695 $5,813 2.3% 3.7% 2.0% 2.8% 2.9% 9.1% 8.9% 10.4% Diversified deposit composition with limited concentrations and 13.4% 18.7% Total Deposits sign
Slide 7: 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 $3.0 billion at 3/31/23 Total Franchise Customer Base 38 ~1
Slide 8: Net Interest Income and Net Interest Margin Trends
Net Interest Income and Net Interest Margin Trends Net Interest Income Highlights $76,604 $75,718 Net interest income was $75.7 million, down 1.2% from 4Q22 $68,635 $61,760 Net interest margin decreased 1 basis point from 4Q22 to 4.38% $58,331 Net Interest Income % change Loan and lease yield
Slide 9: Non-Interest Income Trends
Non-Interest Income Trends ($ in millions) Total Non-Interest Income Highlights 12% Non-interest income was $15.1 million, up 32.2% from 4Q22 14% $19.5 6% Non-interest income trends remain stable QoQ, excluding FV mark on $15.1 loan servicing asset $14.3 27% $12.0 $11.5 Gain on sale margins im
Slide 10: Non-Interest Expense Trends
Non-Interest Expense Trends ($ in millions) Non-Interest Expense Highlights Non-interest expenses decreased to $48.8 million from $50.5 million in 4Q22, $50.5 $48.8 primarily attributable to: $44.0 $46.0 $43.6 $1.4 million decrease in salaries and employee benefits mainly due to lower incentive
Slide 11: Asset Quality Trends
Asset Quality Trends ($ in millions) Net Charge-offs Allowance for Credit Losses (ACL) $3.2 ($ in thousands) $90.5 $81.9 $74.0 $79.7 NCO Ratio $72.1 $2.2 $1.8 bps change $1.2 QoQ YoY 1.64% $0.8 0.24% 1.51% -15 bps 2 bps 1.51% 1.51% 0.17% 0.14% 1.43% 0.07% 0.09% Q1 2022 Q2 2022 Q3 2022 Q4 2022 Q1 202
Slide 12: Strong Liquidity and Securities Portfolio
Strong Liquidity and Securities Portfolio Liquidity Position Highlights Robust liquidity position supported by cash and substantial borrowing capacity No outstanding Discount Window or Bank Term Funding borrowings $1.8 billion of available borrowing capacity Posted $222 million to Bank Term
Slide 13: Strong Capital Position
Strong Capital Position Capital Ratios Return on Average Tangible Common Equity 17.75% 13.72% 16.49% 13.09% 13.02% 13.00% 13.19% 15.31% 14.02% 14.17% 17.21% 16.20% 15.31% 9.21% 14.02% 14.17% 8.53% 8.10% 8.42% 8.66% Q1 2022 Q2 2022 Q3 2022 Q4 2022 Q1 2023 Q1 2022 Q2 2022 Q3 2022 Q4 2022 Q1 2023 (1) (
Slide 14: 2023 Strategic Priorities and Near-Term Outlook
2023 Strategic Priorities and Near-Term Outlook Commercial banking strategy focused on organic loan and deposit growth Maintain a strong balance sheet and capital flexibility Maintain credit discipline and strong asset quality Disciplined loan and deposit pricing Investing in digital capabilities an
Slide 15: 1Q23 Appendix
1Q23 Earnings Presentation Appendix
Slide 16: CRE Portfolio: Office Represents 3.2% of Total Loans
CRE Portfolio: Office Represents 3.2% of Total Loans Non-Owner Occupied Commercial Real Estate Portfolio Owner Occupied CRE ($ in millions) 3/31/23 % of NOO CRE Loans 7.2% Non-Owner Multifamily $439.6 28.7% Occupied Office CRE 3.2% Industrial /Warehouse 493.3 32.2% Office 178.7 11.7% Total Loans & L
Slide 17: Office CRE Portfolio: Diversified Tenants and Markets
Office CRE Portfolio: Diversified Tenants and Markets Office Portfolio CRE Office: Geographic Mix by State Office Portfolio Metrics Tenant Classification ($ in millions) 3/31/23 3/31/23 Single Tenant Illinois $90.5 26% North Carolina 26.0 Avg. Commitment $3.4 million Medical Wisconsin 18.6 Multi-Ten
Slide 18: Five Quarter Financial Summary
Five Quarter Financial Summary As of or For the Three Months Ended Recast Recast Recast March 31, December 31, September 30, June 30, March 31, (dollars in thousands, except per share data) 2023 2022 2022 2022 2022 Income Statement Net interest income $ 75,718 $ 76,604 $ 68,635 $ 61,760 $ 58,331 Pro
Slide 19: Non-GAAP Reconciliation
Non-GAAP Reconciliation As of or For the Three Months Ended Recast Recast Recast March 31, December 31, September30, June 30, March 31, (dollars in thousands, except per share data) 2023 2022 2022 2022 2022 Net income and earnings per share excluding significant items Reported Net Income $ 23,945 $
Slide 20: Non-GAAP Reconciliation (continued)
Non-GAAP Reconciliation (continued) As of or For the Three Months Ended Recast Recast Recast March 31, December 31, September30, June 30, March 31, (dollars in thousands) 2023 2022 2022 2022 2022 Adjusted non-interest expense: Non-interest expense $ 48,800 $ 50,500 $ 46,041 $ 43,585 $ 43,956 Less: S
Slide 21: Non-GAAP Reconciliation (continued)
Non-GAAP Reconciliation (continued) As of or For the Three Months Ended Recast Recast Recast March 31, December 31, September30, June 30, March 31, (dollars in thousands) 2023 2022 2022 2022 2022 Tangible common stockholders' equity: Total stockholders' equity $ 795,650 $ 765,816 $ 735,805 $ 755,648
Slide 22: Non-GAAP Reconciliation (continued)
Non-GAAP Reconciliation (continued) As of or For the Three Months Ended Recast Recast Recast (dollars in thousands, except share and per share March 31, December 31, September30, June 30, March 31, data, ratios annualized, where applicable) 2023 2022 2022 2022 2022 Pre-tax pre-provision return on av
Slide 23: Non-GAAP Reconciliation (continued)
Non-GAAP Reconciliation (continued) As of or For the Three Months Ended Recast Recast Recast March 31, December 31, September30, June 30, March 31, 2023 2022 2022 2022 2022 Tangible common equity to tangible assets: Tangible common equity $ 638,218 $ 606,929 $ 575,321 $ 593,554 $ 613,699 Tangible as
Slide 24: OX
OX