Byline Bancorp, Inc. · NYSE:BY
Byline Bancorp — Q4 2024 Earnings Presentation
27 slides from Byline Bancorp's earnings presentation, Jan 24, 2025
Slide 1: 4Q24 Earnings Presentation
4Q24 Earnings Presentation 1
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: 2024 Year in Review
2024 Year in Review Delivered Successful 2024 Results Reported net income of $120.8 million, or diluted EPS of $2.75, on revenue(1) of $406.9 million Solid PTPP ROA(1) of 2.05%, ROA of 1.31%, ROTCE(1) of 14.85% Net interest margin of 3.97% Delivered full year loan growth of 3.1%, funded by h
Slide 4: Fourth Quarter 2024 Highlights
Fourth Quarter 2024 Highlights Net Income Diluted EPS PTPP ROAA $30.3 million $30.5 million $0.69 $0.69 2.04% 2.05% Reported Adjusted(1) Reported Adjusted(1) Reported(1)(2) Adjusted(1)(2) Efficiency Ratio ROAA ROTCE 53.58% 53.37% 1.31% 1.32% 13.92% 14.02% Reported Adjusted(1) Reported(2) Adjusted(1)
Slide 5: Loan Portfolio Trends
Loan Portfolio Trends ($ in millions) Total Loan Portfolio and Average Yield Highlights Total loan portfolio stood at $6.9 billion, flat from 3Q24 $6,702 $6,802 $6,905 $6,899 $6,910 Originated $297.2 million in new loans, net of loan sales in 4Q24 Production driven by commercial banking and le
Slide 6: Deposit Trends
Deposit Trends ($ in millions) Deposit Composition Highlights Total deposits were $7.5 billion, flat from 3Q24 $7,177 $7,350 $7,347 $7,498 $7,459 5.1% 5.8% 5.8% 6.2% 5.8% Commercial deposits accounted for 45.0% of total deposits and represent 21.2% 21.7% 21.9% 21.9% 20.1% 80.8% of all non-intere
Slide 7: Net Interest Income and Net Interest Margin Trends
Net Interest Income and Net Interest Margin Trends ($ in millions) Net Interest Income Highlights $88,524 Net interest income was $88.5 million, up 1.2% from 3Q24 $86,285 $85,541 $86,526 $87,455 Increase in NII driven by lower interest expense 4.01% net interest margin, up 13 basis points from
Slide 8: Non-Interest Income Trends
Non-Interest Income Trends ($ in millions) Total Non-Interest Income Highlights $16.1 Non-interest income was $16.1 million, up 12.3% from 3Q24 $15.5 $14.5 $14.4 15% $7.1 million in gain on sale of loans sold, driven by higher volumes 17% $12.8 14% 18% 7% 9% 7% 11% and premiums 7% 8% 36% 44% N
Slide 9: Non-Interest Expense Trends
Non-Interest Expense Trends ($ in millions) Non-Interest Expense Highlights $57.4 Non-interest expenses stood at $57.4 million, up 5.7% from 3Q24 and reflects: $53.6 $53.8 $53.2 $54.3 $2.3 million increase in salaries and employee benefits due to higher incentive and equity-based compensation ex
Slide 10: Asset Quality Trends
Asset Quality Trends ($ in millions) Net Charge-offs Allowance for Credit Losses (ACL) $12.2 $101.7 $102.4 $1.2 $99.7 $98.4 $9.5 $98.0 $8.5 0.73% $7.8 $6.2 $2.4 1.52% 1.51% 0.56% 0.49% 0.45% 1.45% 1.44% $11.0 $9.5 1.42% 0.37% $7.9 $6.1 $6.0 Q4 2023 Q1 2024 Q2 2024 Q3 2024 Q4 2024 Q4 2023 Q1 2024 Q2
Slide 11: Strong Liquidity and Securities Portfolio
Strong Liquidity and Securities Portfolio ($ in millions) Liquidity Position Highlights Cash and cash equivalents $563.1 million, up by $110.5 million from 3Q24 primarily Securities portfolio duration: 4.9 years; net of hedges: ~4.6 years due higher FHLB advances Securities portfolio annual ca
Slide 12: Strong Capital Position
Strong Capital Position Capital Ratios Strong Capital Base Capital Priorities: 14.41% 14.74% 13.38% 13.66% 13.86% 1. Fund Organic Growth 2. Dividend 3. M&A 4. Buyback 9.72% 9.61% TCE operating target range(1) is between 8% and 9%: currently at 9.61% 9.06% 8.76% 8.82% Increased capital ratios w
Slide 13: 2025 Strategic Priorities
2025 Strategic Priorities Strengthening our position as the preeminent commercial bank in Chicago Stay Ahead of Regulatory Expectations Maintain Balance Sheet Strength Completing the First Security Fortress level Capital Ratios: acquisition and providing a Prepare for crossing the • TCE Strong liqui
Slide 14: A Clear Long-term Strategy
A Clear Long-term Strategy Grow our Commercial Maintain Balance Continue to Invest in Capitalize on Market Deliver Strong Deepen Customer Client Franchise Sheet Strength the Business Opportunities Financial Results Relationships Differentiated Maintain a strong Continue to invest Attract additional
Slide 15: 4Q24 Appendix
4Q24 Earnings Presentation Appendix
Slide 16: 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) ~69% of Total Deposits are FDIC Insured $4.0 billion at 12/31/24 Total Franchise Customer Base 46 ~
Slide 17: NOO Office Represents 2.3% of Total Loans
NOO Office Represents 2.3% of Total Loans NOO Office has decreased from 3.3% to 2.3% year-over-year Non-Owner Occupied CRE & Other(1) Portfolio NOO Office CRE ($ in millions) 12/31/24 % of Total Loans 2.3% Industrial / Warehouse $629.4 9.1% Multi-family 539.9 7.8% Retail 202.7 2.9% NOO Non-Office To
Slide 18: Office CRE Portfolio: Diversified Tenants and Markets
Office CRE Portfolio: Diversified Tenants and Markets Office Portfolio CRE Office: Geographic Mix by State Office Portfolio Metrics Tenant Classification ($ in millions) 12/31/24 12/31/24 9/30/24 Illinois $98.2 Single Tenant Avg. Commitment $3.4 million $3.6 million 19% North Carolina 24.1 Multi-Ten
Slide 19: Unguaranteed Government-Guaranteed Exposure Represents 6.1% of Total Loans
Unguaranteed Government-Guaranteed Exposure Represents 6.1% of Total Loans ($ 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 $385.5 5.6% Top Illinois SBA 7(a) lender for
Slide 20: Projected Acquisition Accounting Accretion
Projected Acquisition Accounting Accretion Projected Accretion(1) ($ in millions) $1.6 $1.5 $1.4 $1.4 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. 20
Slide 21: Financial Summary
Financial Summary As of or For the Three Months Ended As of or For the Year Ended (dollars in thousands, except per share data) December 31, September 30, December 31, December 31, December 31, 2024 2024 2023 2024 2023 Income Statement Net interest income $ 88,524 $ 87,455 $ 86,285 $ 348,046 $ 330,6
Slide 22: Non-GAAP Reconciliation
Non-GAAP Reconciliation As of or For the Three Months Ended As of or For the Year Ended December 31, September 30, December 31, December 31, December 31, (dollars in thousands, except per share data) 2024 2024 2023 2024 2023 Net income and earnings per share excluding significant items Reported Net
Slide 23: Non-GAAP Reconciliation (continued)
Non-GAAP Reconciliation (continued) As of or For the Three Months Ended As of or For the Year Ended December 31, September 30, December 31, December 31, December 31, (dollars in thousands) 2024 2024 2023 2024 2023 Adjusted non-interest expense: Non-interest expense $ 57,431 $ 54,327 $ 53,584 $ 218,7
Slide 24: Non-GAAP Reconciliation (continued)
Non-GAAP Reconciliation (continued) As of or For the Three Months Ended As of or For the Year Ended December 31, September 30, December 31, December 31, December 31, (dollars in thousands) 2024 2024 2023 2024 2023 Tangible common stockholders' equity: Total stockholders' equity $ 1,091,497 $ 1,096,3
Slide 25: Non-GAAP Reconciliation (continued)
Non-GAAP Reconciliation (continued) As of or For the Three Months Ended As of or For the Year Ended (dollars in thousands, except share and per share December 31, September 30, December 31, December 31, December 31, data, ratios annualized, where applicable) 2024 2024 2023 2024 2023 Pre-tax pre-prov
Slide 26: Non-GAAP Reconciliation (continued)
Non-GAAP Reconciliation (continued) As of or For the Three Months Ended As of or For the Year Ended December 31, September 30, December 31, December 31, December 31, 2024 2024 2023 2024 2023 Tangible common equity to tangible assets: Tangible common equity $ 893,399 $ 896,869 $ 786,673 $ 893,399 $ 7
Slide 27: OX
OX