Byline Bancorp, Inc. · NYSE:BY
Byline Bancorp — Q1 2024 Earnings Presentation
25 slides from Byline Bancorp's earnings presentation, Apr 26, 2024
Slide 1: 1Q24 Earnings Presentation
By) Byline Bancorp, Inc. i 1Q24 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 2024 Highlights
First Quarter 2024 Highlights Net Income Diluted EPS PTPP ROAA $30.4 million $30.6 million $0.70 $0.70 2.10% 2.11% Reported Adjusted(1) Reported Adjusted(1) Reported(1)(2) Adjusted(1)(2) Efficiency Ratio ROAA ROTCE 51.94% 51.75% 1.36% 1.36% 15.88% 15.95% Reported Adjusted(1) Reported(2) Adjusted(1)(
Slide 4: Loan and Lease Trends
Loan and Lease Trends ($ in millions) Total Loans & Leases and Average Yield Highlights $6,621 $6,702 $6,802 Total loans and leases were $6.8 billion at 1Q24, an increase of $99.5 million, $5,544 $5,597 or 6.0% annualized from 4Q23 7.68% 7.45% 7.42% 7.18% Originated $264.2 million in new loans,
Slide 5: Deposit Trends
Deposit Trends ($ in millions) Deposit Composition Highlights $5,813 $5,917 $6,954 $7,177 $7,350 Total deposits were $7.4 billion, up 9.7% annualized from 4Q23 2.9% 3.6% 4.5% 5.1% 5.8% Commercial deposits accounted for 45.0% of total deposits and represent 18.7% 20.5% 20.8% 21.2% 21.7% 77.1% of
Slide 6: Net Interest Income and Net Interest Margin Trends
Net Interest Income and Net Interest Margin Trends ($ in millions) Net Interest Income Highlights $92,452 Net interest income was $85.5 million, down 0.9% from 4Q23 $86,285 $85,541 $75,718 $76,166 Net interest margin decreased 8 basis points from 4Q23 to 4.00% Short term investments reduced NI
Slide 7: Non-Interest Income Trends
Non-Interest Income Trends ($ in millions) Total Non-Interest Income Highlights $15.1 $15.5 Non-interest income was $15.5 million, up 6.7% from 4Q23 $14.3 $14.5 12% $12.4 17% Gain on sale margins improved driven by higher premiums, offset 12% 14% 6% 7% 7% 11% 9% by lower volume of loans sold 8%
Slide 8: Non-Interest Expense Trends
Non-Interest Expense Trends ($ in millions) Non-Interest Expense Highlights $57.9 Non-interest expenses stood at $53.8 in 1Q24, flat QoQ and reflects: $53.6 $53.8 $48.8 $49.3 $2.0 million increase in salaries and employee benefits $0.8 million decrease in data processing expenses Consolidati
Slide 9: Asset Quality Trends
Asset Quality Trends ($ in millions) Net Charge-offs Allowance for Credit Losses (ACL) $12.2 $105.7 $101.7 $102.4 $92.7 $90.5 0.73% $6.2 $5.4 $4.3 1.64% 1.66% $1.2 0.33% 0.37% 1.60% 0.31% 1.52% 1.51% 0.09% Q1 2023 Q2 2023 Q3 2023 Q4 2023 Q1 2024 Q1 2023 Q2 2023 Q3 2023 Q4 2023 Q1 2024 Net charge-off
Slide 10: Strong Liquidity and Securities Portfolio
Strong Liquidity and Securities Portfolio Liquidity Position Highlights Cash and cash equivalents of $636.8 million Repaid holding company revolving line of credit $1.4 billion investment portfolio (~99.9% AFS) HTM portfolio of $1.2 million ($7,000 in unrealized losses) $2.0 billion of ava
Slide 11: Strong Capital Position
Strong Capital Position Capital Ratios Return on Average Tangible Common Equity 18.95% 17.50% 17.89% 13.52% 13.66% 16.49% 15.95% 13.19% 13.17% 13.38% 16.20% 16.78% 16.15% 16.68% 15.88% 8.66% 8.87% 9.06% 8.76% 8.18% Q1 2023 Q2 2023 Q3 2023 Q4 2023 Q1 2024 Q1 2023 Q2 2023 Q3 2023 Q4 2023 Q1 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: 1Q24 Appendix
1Q24 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) ~71% of Total Deposits are FDIC Insured $4.0 billion at 3/31/24 Total Franchise Customer Base 48 ~1
Slide 15: CRE Portfolio: NOO Office Represents 3.0% of Total Loans
CRE Portfolio: NOO Office Represents 3.0% of Total Loans Non-Owner Occupied Commercial Real Estate Portfolio NOO Office CRE ($ in millions) 3/31/24 % of Total Loans 3.0% Industrial / Warehouse $588.5 8.7% Multi-family 543.3 8.0% Retail 246.7 3.6% Total Loans & Leases Office NOO Non-Office 205.5 3.0%
Slide 16: Office CRE Portfolio: Diversified Tenants and Markets
Office CRE Portfolio: Diversified Tenants and Markets Office Portfolio CRE Office: Geographic Mix by State Office Portfolio Metrics Tenant Classification ($ in millions) 3/31/24 3/31/24 12/31/23 Illinois $128.0 Avg. Commitment $3.6 million $3.6 million Single Tenant 16% North Carolina 26.0 Multi-Ten
Slide 17: Unguaranteed Government-Guaranteed Exposure Represents 6.3% of Total Loans
Unguaranteed Government-Guaranteed Exposure Represents 6.3% of Total Loans On Balance Sheet SBA 7(a) & USDA Loans Highlights ($ in millions) $ Balance % of Portfolio One of the top SBA and USDA lenders in the United States Unguaranteed $386.0 5.7% Closed $135.9 million in SBC loan commitments in
Slide 18: Projected Acquisition Accounting Accretion
Projected Acquisition Accounting Accretion Projected Accretion(1) ($ in millions) $2.4 $2.2 $1.9 $1.7 $1.6 Q2 2024 E Q3 2024 E Q4 2024 E Q1 2025 E Q2 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) March 31, December 31, March 31, 2024 2023 2023 Income Statement Net interest income $ 85,541 $ 86,285 $ 75,718 Provision for credit losses 6,643 7,235 9,825 Non-interest income 15,473 14,503 15,145 N
Slide 20: Non-GAAP Reconciliation
Non-GAAP Reconciliation As of or For the Three Months Ended March 31, December 31, March 31, (dollars in thousands, except per share data) 2024 2023 2023 Net income and earnings per share excluding significant items Reported Net Income $ 30,440 $ 29,604 $ 23,945 Significant items: Impairment charges
Slide 21: Non-GAAP Reconciliation (continued)
Non-GAAP Reconciliation (continued) As of or For the Three Months Ended March 31, December 31, March 31, (dollars in thousands) 2024 2023 2023 Adjusted non-interest expense: Non-interest expense $ 53,809 $ 53,584 $ 48,800 Less: Significant items Impairment charges on assets held for sale and ROU ass
Slide 22: Non-GAAP Reconciliation (continued)
Non-GAAP Reconciliation (continued) As of or For the Three Months Ended March 31, December 31, March 31, (dollars in thousands) 2024 2023 2023 Tangible common stockholders' equity: Total stockholders' equity $ 1,009,049 $ 990,151 $ 795,650 Less: Goodwill and other intangibles 202,133 203,478 157,432
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 March 31, December 31, March 31, data, ratios annualized, where applicable) 2024 2023 2023 Pre-tax pre-provision return on average assets: Pre-tax pre-provision net income $ 47,2
Slide 24: Non-GAAP Reconciliation (continued)
Non-GAAP Reconciliation (continued) As of or For the Three Months Ended March 31, December 31, March 31, 2024 2023 2023 Tangible common equity to tangible assets: Tangible common equity $ 806,916 $ 786,673 $ 638,218 Tangible assets 9,208,370 8,678,489 7,372,914 Tangible common equity to tangible ass
Slide 25: OX
OX