Byline Bancorp, Inc. · NYSE:BY
Byline Bancorp — Q4 2022 Earnings Presentation
24 slides from Byline Bancorp's earnings presentation, Jan 26, 2023
Slide 1: Byline Bancorp, Inc. 4Q22 Earnings Presentation
Exhibit 99.2 January 26, 2022 Byline Bancorp, Inc. 4Q22 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: Full Year 2022 Summary
Full Year 2022 Summary Performance Highlights Reported net income of $88.0 million, or EPS of $2.34, on revenue of $322.6 million Solid PTPP ROA of 1.97%, ROA of 1.25%, ROTCE of 15.15% Delivered full year diversified loan growth of 19%, funded by high quality deposit base which grew 10% YoY
Slide 4: Fourth Quarter 2022 Highlights
Fourth Quarter 2022 Highlights Net Income & EPS PTPP ROAA & ROTCE(1) $24.4 million $37.6 million 1.33% ROAA $0.65 per diluted share 2.05% PTPP ROA 17.21% ROTCE Profitability Credit Quality Capital Grew Pre-Tax Pre-Provision Net Income 8.4% QoQ to Credit quality remained stable with: CET1 and T
Slide 5: Pre-Tax Pre-Provision Net Income
Pre-Tax Pre-Provision Net Income ($ in millions) As we are investing in people and technology with the goal …our strategy is producing record PTPP; driving sustained of improving growth and efficiency… profitability and delivering positive operating leverage Quarterly Pre-Tax Pre-Provision Net Incom
Slide 6: Loan and Lease Trends
Loan and Lease Trends ($ in millions) Total Loans & Leases and Average Yield Highlights $5,309 $5,469 Total loans and leases were $5.5 billion at 4Q22, an increase of $160.0 million, $5,185 $4,827 $2 $1 $4,602 $10 or 12.0% annualized $36 Total Loans and Leases $124 $5,468 Originated $269.0 milli
Slide 7: Government-Guaranteed Lending
Government-Guaranteed Lending ($ in millions) On Balance Sheet SBA 7(a) & USDA Loans Highlights A leading SBA 7(a) lender for Government Fiscal Year 2022 $ Balance % of Portfolio #5 SBA 7(a) lender in the United States Unguaranteed $379.4 7.0% Closed $120.9 million loan commitments in 4Q22 Gua
Slide 8: Deposit Trends
Deposit Trends ($ in millions) Deposit Composition Highlights Total deposits were $5.7 billion, up 5.8% annualized from 3Q22 $5,155 $5,530 $5,388 $5,612 $5,695 2.9% 2.3% 3.7% 2.0% 2.8% 10.3% 9.1% 8.9% 10.4% Non-interest-bearing deposits flat QoQ 13.4% Total Deposits % change Strong inflows of
Slide 9: Net Interest Income and Net Interest Margin Trends
Net Interest Income and Net Interest Margin Trends Net Interest Income Highlights Net interest income was $76.6 million, up 11.6% from 3Q22 $76,604 $68,635 Net interest margin increased 36 basis points from 3Q22 to 4.39% $61,728 $61,760 Net Interest Income $58,331 % change Asset sensitive prof
Slide 10: Non-Interest Income Trends
Non-Interest Income Trends ($ in millions) Total Non-Interest Income Highlights Non-interest income was $11.5 million, a decrease of $0.6 million from 3Q22 15% 18% $19.0 $19.5 $3.5 million loan servicing asset revaluation charge due to higher 8% discount rates $14.3 11% $12.0 $11.5 Lower premi
Slide 11: Non-Interest Expense Trends
Non-Interest Expense Trends ($ in millions) Non-Interest Expense Highlights $59.1 Non-interest expenses increased to $50.5 million from $46.0 million in 3Q22, $50.5 primarily attributable to: $44.0 $43.6 $46.0 $2.2 million in higher salaries and employee benefits mainly due to increased incentiv
Slide 12: Asset Quality Trends
Asset Quality Trends ($ in millions) Net Charge-offs Highlights $4.2 Strong asset quality continues to reflect Byline’s prudent risk culture and diverse loan and lease portfolio $3.2 NCO Ratio Non-performing assets to total assets declined to 0.55% in 4Q22 from 0.64% bps change $2.2 $1.8 in 3Q22
Slide 13: CECL Adoption
CECL Adoption ($ in thousands) CECL Adoption Change ACL - Loans and Leases Overall CECL Impact On December 31, 2022, the Company adopted Current Expected Credit Loss (CECL) Day 1 impacts: $12.2 million increase in reserves, reflecting a $3.1 million allocation to PCI loans transitioning to PCD
Slide 14: CECL Adoption
CECL Adoption ($ in thousands) CECL Adoption - Allocation by Loan Classification Allowance for Credit Losses for the Year ended December 31, 2022 Construction, Commercial Residential Land Development Commercial Installment Lease Financing For Year Ended 2022 Real Estate Real Estate and Other and Ind
Slide 15: Strong Liquidity and Capital Position
Strong Liquidity and Capital Position Capital Ratios Highlights $1.9 billion of available on balance sheet liquidity 14.70% 13.72% 13.09% 13.02% 13.00% Cash and cash equivalents of $179.4 million 10.11% Loans/Deposits essentially flat at 96.0% QoQ 9.21% 8.53% 8.42% 8.10% $1.4 billion investm
Slide 16: 2023 Strategic Priorities and Near-Term Outlook
2023 Strategic Priorities and Near-Term Outlook Commercial banking strategy focused on organic loan and deposit growth Disciplined loan and deposit pricing Investing in digital capabilities and automation Maintain credit discipline and strong asset quality Opportunistic M&A and talent additions Main
Slide 17: 4Q22 Appendix
4Q22 Earnings Presentation Appendix
Slide 18: Five Quarter Financial Summary
Five Quarter Financial Summary As of or For the Three Months Ended Recast Recast Recast December 31, September 30, June 30, March 31, December 31, (dollars in thousands, except per share data) 2022 2022 2022 2022 2021 Income Statement Net interest income $ 76,604 $ 68,635 $ 61,760 $ 58,331 $ 61,728
Slide 19: Non-GAAP Reconciliation
Non-GAAP Reconciliation As of or For the Three Months Ended Recast Recast Recast December 31, September30, June 30, March 31, December 31, (dollars in thousands, except per share data) 2022 2022 2022 2022 2021 Net income and earnings per share excluding significant items Reported Net Income $ 24,367
Slide 20: Non-GAAP Reconciliation (continued)
Non-GAAP Reconciliation (continued) As of or For the Three Months Ended Recast Recast Recast December 31, September30, June 30, March 31, December 31, (dollars in thousands) 2022 2022 2022 2022 2021 Adjusted non-interest expense: Non-interest expense $ 50,500 $ 46,041 $ 43,585 $ 43,956 $ 59,090 Less
Slide 21: Non-GAAP Reconciliation (continued)
Non-GAAP Reconciliation (continued) As of or For the Three Months Ended Recast Recast Recast December 31, September30, June 30, March 31, December 31, (dollars in thousands) 2022 2022 2022 2022 2021 Tangible common stockholders' equity: Total stockholders' equity $ 765,816 $ 735,805 $ 755,649 $ 777,
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 December 31, September30, June 30, March 31, December 31, data, ratios annualized, where applicable) 2022 2022 2022 2022 2021 Pre-tax pre-provision return on
Slide 23: Non-GAAP Reconciliation (continued)
Non-GAAP Reconciliation (continued) As of or For the Three Months Ended Recast Recast Recast December 31, September30, June 30, March 31, December 31, 2022 2022 2022 2022 2021 Tangible common equity to tangible assets: Tangible common equity $ 606,929 $ 575,321 $ 593,555 $ 613,698 $ 660,386 Tangible
Slide 24: OX
OX