BY - Earnings call transcript Q2 2021

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Operator

Good morning and welcome to the Byline Bancorp Second Quarter 2021 Earnings Conference Call. All participants will be in listen-only mode. [Operator Instructions] After today’s presentation, there will be an opportunity to ask questions. [Operator Instructions] Please note this event is being recorded. I would now like to turn the conference over to Brooks Rennie, Head of Investor Relations. ahead. go Please

Brooks Rennie

is or Good with us Andrew. that other certain factors to XXXX And the certain SEC disclosed fully you projections company's corresponding Investor Management this statements, are thank call. on regarding via slides. is Thank on of to or presentation within involve statements discussed and that earnings webcast for and morning, everyone today's to release events forward-looking future the results remind joining our call The FD, actual risk Regulation today accordance website, the differ quarter future like recorded call Byline for factors other that subject and cause uncertainties In filings. its risks available company. such materially are along you, Relations performance could discussed. with financial everyone. being our from Bancorp would earnings the We caution statements second and those

In for, the addition, intended presentation. not be these within may can but refer the to of comparable supplement, slides which substitute we non-GAAP numbers measures, to most measures. Reconciliation are directly found GAAP for contain earnings appendix the certain and

provide uncertainties, is For our update the Byline call would financial of will as forward-looking I over we measures The additional XXXX of release. Paracchini, June undertake please disclosures accurate information. Alberto Bancorp. President XX to XXXX like second about the today duty risks the statements to to no now information we turn conference and and information in the see and non-GAAP quarter earnings

Alberto Paracchini

for results. call to good and review morning, our all joining on us the quarter Brooks, today you, second and thank Thank you

who call. welcome our I'd Brooks Byline earnings Relations Investor recently off, as First to his first to joined like of Head Rennie,

public in results the an came from and I'll to and economic financials Lindsay while Joining with for the opening the more XX Chief on Roberto ROTCE at coming driven giving ROA overview call on generate I levels start by the strong the you quarter overall net for our in at Fucinato, income call pleased growth and Profitability $X.XX record and our CEO, environment metrics Mark passing over quarter, share. the million at at was who'll across the Earnings XXX previous $XX.X Chairman Officer. are basis up you questions. a walk quarter. points were improving before Corby; Lindsay, XXX Herencia; lending the and all of production excellent detail. on the our across quarter areas. highlights per company, results. outstanding for return pre-provision us loan board. basis was we our were remarks, with as for me CFO, well our was Credit in came then before through that of the by three during Revenue report points, executed points, provide solid and Pre-tax XX.X%. I'm will second primarily you ROA basis or deck. slide in to the capitalized call Starting up closing to

we of and loans, commercial for throughout build leasing. Notwithstanding up real and we prior estate, equipment $X XX.X%, and in PPP million up end. the billion continued from company Demand confident XX% $XXX as second in commercial more credit Excluding increased, for across Notably, some level became also normal. originations during to prior growth or continued to Line return the the the end the economic payoffs, additional was drive which in utilization to to well quarter, in XX.X% saw balanced commercial as line borrowers the of quarter, activity a ex-PPP balances. Overall, utilization, quarter an quarter. annualized stood by total which production sponsor us and $XXX.X million also was increased quarter. the recovery loans uptick at impact at record had in million $XXX of loan helped loan commercial, the from

Contributing While our and growth, the benefit are we've equipment. seeing with in growth. building These diversification few that risk-adjusted a in Last yields. team, that encouraged we're to past mentioned the but portfolio loan and team These the balance over by larger additions CRE. complement material in not years, only and in from we were I handling key a volume, hires business. contribution their was were also at demand factor increased quarter, our sheet growth to the our we're add particularly the and to growth increasing C&I the leasing made additions seeing to steadily expertise talent books made bankers making industrial also attractive

to We continue actively opportunities add at franchise. our to to talented look bankers

gain increased first loans, market government-guaranteed on This in We Compared by market in largest X(a) the business. Moving million this June quarter. leader for of these million prior XX% Investor levels. XX, to income a quarter XXXX, remains on with United remain the as closed another robust, quarter And we lending. to to of fourth lender sale compared the million. $XXX nearly are States. the of $XX.X $XXX secondary to at record had loans business in strong production in with premiums appetite also

of decline X very the to well operating just exceptional. is stable quality relationships drove basis as remains in see rate when account up The for the basis longer and our Noninterest-bearing held earning increased of our we now point no basis million XX% new $XX to environment compared in accretion the This banks deposits. was costs higher market. excluding prior and Notwithstanding to points, from margin is it increase X the income, base quarter, other saw cycle of clients quarters. deposit deposit asset liquidity, as the has continue today, inflows and total mix This, of with in in higher liability deposits another material our by improvement the a deposits the effects of which our On to combined bank. help liquidity to also side, for good point low. us with yields, which X margin impact levels

Asset declining, quality again, with terms, while quarter, in charge-offs significantly NPLs prior came points. in percentage both NPAs to net the XX and from improve, declined continued and and dollar both at basis

excluding basis reflective release, Our allowance still XXX while our provision was of or at XXX of reserve basis PPP. maintaining loans our points points,

profitability capital capital we under that Our shareholders. with been ratio and quarter amount of a under total CETX able With of strong, to capital just to position, end. of XX% ratio position of we've level return just the XX% our and increase strong capital at remains

it increase per Our the XXXX. stock an share, our common is higher when $X.XX to now from Board quarterly dividend we of authorized initiated to than which end at $X.XX XXX%

During X.XX repurchased of we million repurchase second shares. the an shares the XXX,XXX of approximately common quarter authorized additional also And stock. Board our

our balance we and strength returning positioned to of franchises support investing the capital in continue opportunities Given to our sheet, pursue well shareholders. while franchise organic growth the strategic are -- in

with like over results. who I'd Lindsay, Now, detail you to turn the more to will our on call provide

Lindsay Corby

additional I'll loan Good Thanks X. on start with morning our everyone. some slide information on Alberto. portfolio

loans than more on earlier, acquired the the line loan and portfolio. PPP production the runoff utilization new discussed Alberto we forgiveness in offset increased and As had

past acquired the the have in was in the increased loans loan for excluded. as seen decrease are offset residential is our the resolutions when of by which from of commercial quarter PPP we portfolio originated $XX the million XX% $XX over excluded up impaired are increased equipment the quarter in acquired When portfolio mortgage of year, past with originated prior well loan increased during portfolio Each originated base our Our residential a or the demand year. major the the the of exception which runoff. financing growth core the by in loans portfolio portfolio. million strong mortgage XX% including $XXX loan PPP in The expected $XX.X over portfolio, second area loan million our growth million client portfolio as reflects the

million which the forgiveness to page payoffs. PPP, have loans, offset and million page the rounds. respective originations of Excluding from had details fees on respect quarter, With that new $XXX included second their partially on PPP appendix the we by provides of was in balances, $XXX XX in a we

to higher than quarter million balance look our of business. lending is quarter sheet million which June of on with on-balance the from $XX government-guaranteed $XXX prior million $XX being end end $XX the X, guaranteed million The on Turning XXth approximately sheet the exposure prior SBA $XX at slide SBA. X(a) the down the At of million, we'll $XX the guaranteed. exposure million, USDA by was was

the periods regular expiration this improving with portfolio and most We subsidies. generally status, are seeing payment in deferral of following borrowers returning to trends

more resiliencies. demonstrates cautious we until However, economy the remain

unchanged As our of as the loan a unguaranteed from result end under, we've percentage just the quarter kept at prior a the X%. allowance of balances,

slide deposits. end million of transaction of of growth replacing in deposits non-interest-bearing strong Time that continue end continue in of increased under billion. X, total our XX% at of to XX% represent accounts. $X.X the account our mix to to total continued deposits Non-interest-bearing to The the only Moving deposits. This just quarter increased while deposits of cost as in deposits over deposits. our the for quarter, a from see positive we XX% to of lower deposits over deposit shift higher came deposits resulted $XX from on categories, of inflows prior commercial the cost total XX.X% are commercial time prior all deposits

strength continues be Our to deposit composition a franchise. our of core,

to net costs. for our up both net Accretion for the was quarter, on to basis down higher from last funding in million Moving interest was X.X% quarter. quarter, as on our last On as prior well securities down points to the basis, loans interest XX second income lower in and basis contributed income of X.XX% X, balances nine margin GAAP slide basis from the the average three quarter. a points quarter, points margin due margin the income quarter loans on $XX.X and the net from interest acquired second

net decline to in interest of an margin of primarily X.XX% was our our point, income accretion basis increase deposits. Excluding cost due average one the

quarter result coming increase, the our less to down and are core and the margin margin deposits of timing lower forgiveness. will rates yields GAAP year that cost offsets of anticipate PPP our as be by begin to and net We $XX.X points. begin process SBA's our the PPP the forward, processing basis the for amounts accretion a by fees the to pressure rise. see should from of excluding impacted end result as upon stabilize next eight funding of on a dependent the available believe the million as though interest net will timing with of loan We side, margin exact and Looking loans,

were in income the loans in non-interest up quarter our Turning $X.X record the of million we million prior largest non-interest quarter to that were $X in increased million, to $XXX.X in sold for this impact sold on loans We the the slide had the X, quarter a in from loans quarter, markets. sold due Relative second of loans of had economic which a in up premiums. our which first The on activity consistent level increase higher $XX.X higher quarter. million and came accounted quarter. fee volume income to of income premiums. Longer-term gain XXXX positive our sale net loans the percentage on of growth from second prior with balanced

$X.X this quarter, smaller revaluation also in quarter. servicing charge compared from in million Our change the a benefited income our non-interest a prior asset to loan

Moving slide on to, non-interest X. expense trends

Our the two second factors. prior was in quarter, was up increase from $XX the attributed primarily million $XX.X million The in to expense non-interest quarter.

branch reduced partially second, assets salaries recorded seasonality impairment loan due in deferred locations. decline to and related by were expense by $X to million and offset charge second equipment million to our for quarter sale on of a $X.X former our primarily related related expense, to we $X.X benefits in occupancy the increases held an months. origination These the loans. winter was And round in First, prior of PPP costs million

locations the during we consolidated two offices. repurposed In additional an production addition, commercial branches loan into the quarter, and

branch to increased million has Our and branch per deposits at count the now size average is XX, branch. $XXX

We run expense continue to rate focus gain on look for and opportunities our to efficiencies.

XX.X% revenue. in from to efficiency the in adjusted in quarter, improved ratio due to growth quarter XX.X% prior second our the Our

expense talented believe the We expense invest will we earlier, As increase we additional non-interest as team $XX $XX per to our to Alberto run bankers trending including will million between described the million rate slightly. quarterly in quarter. begin believe continue

Turning look to we'll slide a at quality. XX, take asset

during continue positive We the to quarter. across loan see trends portfolio the

from total declined of loans activity. points XX declined basis the leases to XX points loans to loans and basis of loans points which leases nonperforming average of charge-offs resolution reflective and basis quarter. basis solid in our XX Excluding government-guaranteed XX points Net prior also was

and we In improvement addition, a continued classified XX% in delinquencies in saw decline assets.

this approximately since had $X a Given in million the of we the the reserve release, acquisition build returned and measured common the the positive of program. reserve leases which the dividend have June enabled earnings a position year. quarter represented shareholders loss the XX% XXth. portfolio the financial performance economy, total six XX, loans X.XX% Through the small and to we've we repurchase by which to at excluding had our stock accounting adjustments PPP of our resulted of our trends have a capital the are Despite pandemic, through of have we allowance high negative On and strong reserve this start release. and loans, absorbency, improving in the first of total stock provision to to continue plus accelerate we us of shareholders return small months seeing slide capital year, level

As XXX,XXX we repurchased million expanded approximately and have shares the shares the shares. have quarter Year-to-date, we continued X.X remaining. during Alberto to we mentioned, repurchase program, with

continue opportunistically our We repurchases. capital manage to share through

strong our increasing reflect actions optimism. deployment capital position Our capital and

We the to strategically. organically With both us excess to flexibility grow generate while to and that, allowing back you. Alberto continue capital

Alberto Paracchini

XX, today wrap about our for Thank you I'd few with the of remainder like turning Lindsay. XXXX. a to outlook And to comments slide up

performance, expect generally trends will premiums in when on headwinds in end continue. we enhancements positive seasonally to reach some level as will seen of we've of moderating cause the of No income be and this sale of emergence the year potentially the there in near-term we first the gain variant half production of variance our period most some for uncertainty, notably the creates level While slower contribution the doubt delta September. SBA that loan

positions invest the reputation sheet, the add to organization. market they to deposits, Our priorities, remain pipelines for continued bankers talented profitability, culture strong in opportunities to and base on built on continuing in capitalize technology to continuing and for well bank asset growing earning securities to though With sophistication, in the products balance talent We've loans. teams serving our as of us thrive improving and growth to remix in which remain and with strong, our to and consistent a executing a portfolio loans from focused we're strategy support clients. respect

improve their opportunities to continue all active let's In also criteria work We questions. a hard M&A, additional business the to optimistic up the our organically in and With create you further to the our value of both for fit With the continue franchise. has thank operator, our look who ability been we can market for for through say franchise and evaluate about basis to open throughout to that add bankers development the happen that I grow call enhance and M&A the further and value we're year. opportunities our to respect would future. closing, capabilities. shareholders for dedication on our daily it to like make employees and to

Operator

begin will The session. first Stephens. comes from the ahead. We question-and-answer Instructions] now Terry Please question go McEvoy [Operator with

Terry McEvoy

everyone. morning good Hi,

Alberto Paracchini

Good morning Terry.

Lindsay Corby

morning Good Terry.

Terry McEvoy

any assume to do I Within on guess, outlook. the million quarterly $XX $XX additional you expense a that hires? banking million outlook, question Lindsay new

Lindsay Corby

Yeah.

about talked in Alberto some remarks. So them of his

it comments. If referenced will But are the ones likely terms does of end. the there that posted. there some. from Alberto yes the keep So had you trajectory, And in his on I'll include higher we Terry towards trend it continue yes

Terry McEvoy

talked others? lot guess then the XX% you're other good credits” as question and get to all help sure And than more us just making you “good can just that were credits and I banks showing I over growth. growth with a that follow-up not really guess of fighting a winning loan annualized just I Great. is, comfortable my those

Alberto Paracchini

efforts have course goes to from back this I have And that fact pipelines previous we've think up. quarter building And where I business this been benefited Terry. building we development quarters we add Sure, that think really you been guess the growth just the question to guided throughout do -- to your a over and bit I of of We year. the the expect still do course give the out to of mid-single-digit that guidance, just year. little expect

this think a noted I also Payoffs is So good as quarter. you increased. there deck the in

very also So originations I board. the they to fortunate were And think increased across payoffs quarter still we were good have really this manageable. while

good. to is being quarters for That market have in still we'll So see demand ahead, pipeline seeing The competitive. credit we're said, the but is today. good

is quarter Terry -- for aided this The certainly quarter other balanced certainly as we're I the would add upward utilization better line thing was and growth well.

Terry McEvoy

nice much, have and very you Thank weekend. a

Alberto Paracchini

Thank you right. All Terry.

Operator

The Piper question go ahead. next Sandler. Please with Race from comes Nathan

Nathan Race

Good morning. Hi, everyone.

Alberto Paracchini

Hey, Nate.

Nathan Race

capital like still acquisition I opportunities. recently. the announcements of deployment are hoping to Chicago was in outlook. We've, discuss a sounds It land area the you guys obviously, seeing number seen some

terms acquisition XQ within and guys how So next share increased the going an you over and you be in context with today. curious along additional for of or authorization feasibility the to the so, with are likelihood repurchases curious Obviously results forward? going price sensitive just year that

deploy get to of buybacks capital? in of to the we within back trying how unfold over this some half should other just So expect year color options terms to

Alberto Paracchini

Yeah.

And think we've in I in acquisitions that at -- parameters I to the being are we opportunities. expect seeing we terms we been we That disciplined continue. guidance have done, said, the in certain Nate, fit, of pricing. is that acquisitions have with there terms very look think a and we of

transactions two this in As here you happen. Chicago, noted year seen market you've the locally

and bank in that. We're also M&A call is conversations environment So outside seeing of certainly I we and M&A. participating opportunities traditional active it are think the

as well. those evaluating we're So

that I taken the and approach we've how And forward. goes would we same with with the past in would So buybacks. discipline the M&A say approach is for going

authorized dividend. -- us can appreciate increase opportunistic that. And continuing you Board also in excess in I think context the the the And terms activity I an to of hopefully of in buyback shareholders capital. will we obviously think be build

I if that. So or I anything want know I – know don't add think Lindsay, Roberto, add else if to to that's you you want to don't what

Roberto Herencia

it's I Nate. program, say a mean I small would share just repurchase

you dividend right And think the So we the we the and the are and growth support our position come the from with in peers. love to feel may we're and -- some months. comfortable to think and I we -- with next the capital opportunities very -- where in through again we XX still relative organic growth acquisition that some just

Nathan Race

in great And on or look Curious, the the terms opportunistically there's that That's add Very lines revenue overall smooth reducing other kind staying quarterly gain you it. grow to to business color. talent Got revenue? or out of of just disruption continue areas equation helpful. we any would of topic. variability M&A in see guys within maybe the kind sale to if that kind of the SBA of on

Alberto Paracchini

Nate. would I But the say, general in in I across our like opportunity we across we lines. of board say, would Yes, still commercial have in all Certainly, our lines. feel board the

for to plenty of there's gain. So share us

I side look kind even the preclude your at estate leasing on at So well. would I commercial opportunities in as us and real lending balance certainly to say would more business, question that terms traditional to to does -- of But of they say business arise. not were to government there, if our sheet the look guaranteed

Nathan Race

charge-offs particularly And charge-off that's if one in credit. from the more Great. the efforts just targeted across SBA could low quarter. all on overall levels the that's space. Okay. pretty ask were The And stimulus been obviously, benefiting and SBA I

us thinking line guaranteed it business? just to year out next normalized as you of levels your charge-off guys look we as to relates can So about in terms remind government of

Alberto Paracchini

payments think are still to I going Nate, subsidy still through degree we're a where period there. some

industries. restaurants, kind benefited government certain of amusement-type, entertainment example, programs have You other that for

because programs on I ends want of we are we're really to able going see really monitoring cautious trends quickly, of spot come be That borrowers to So far you we're these impact there the of the the positive. is we which that But how when remaining as are said optimistic. Lindsay, comments all are out are that think that. cautiously made to these so see

off borrowers those making subsidy have borrowers that vast coming the We resumed seen and of just payments. significant their majority are resume have

for for and the optimistic year rest say as the beginning of we're So Certainly, the I well. that end. in XXXX of would

Nathan Race

and all very I great That’s a helpful. the everyone quarter. appreciate congrats you colors. Thank on

Roberto Herencia

Thank you, Nate.

Operator

from question go Tim KBW. ahead. with The next comes Switzer Please

Tim Switzer

This Mike morning. on Good is Hi. Perito. Tim for Switzer,

Lindsay Corby

morning, Good Tim

Tim Switzer

could from on capital get more one your guys distribution. I you If

guys to next guys just have at of now times the that kind You targeted ratio you or sort over a the all? two two up a to this long-term or year. there payout three dividend over increased build dividend you're total Is the year of targeting of years kind hoping are

Alberto Paracchini

anything Tim, where -- I don't target know anything we that our have that's kind is. that we like you what of would tell

-- I is very to you we with never a we had really remember started dividend. And really answer that capital that a think XXXX paid really would very, the I deployment in modest remind opportunities. on dividend. contingent also

our also where time excess over earning and We that up as first the generating -- in And also power following we've time capital. view the certainly was Board also buyback built capital to our has increased as -- point were has a a authorized our -- we that that really increased authorization. we our

So to back make shareholders. we wanted our capital sure that were to we returning that

would as how and would I to future certainly is gives the well. the question. that context that dividend say I that hope an in increases about answer we think activity in you So buyback

Tim Switzer

these with of we're fees. No little Yes. determine. mean, of a just trying you're extra bit I Yes. PPP to kind capital generating

sense would the be more distribution through makes your to then-- look trying So And of deploying long-term. long-term get a what share over at repurchase but that capital

Alberto Paracchini

Roberto we're add question, the that would the to remember I on prior comment Yes, base. coming off made low a

we trajectory future. our in certainly the respect feel to the the and certainly flexibility the continues in -- as of have certainly an dividend power upward earnings earnings with So, we company

Roberto Herencia

honest or we and disappoint. would I and certain right Lindsay that really Meaning a then -- and situation reduce be to grounded in have add keeps very dividend you to want just never a it also to I us peers paying our think by to And we make mentioned, you're something right? that that where all also the and the sense, Alberto we're are wanting disappoint market. guided to not doesn't factors by do but So, relative

Tim Switzer

Of little get course, okay. just color if I you little a margin on bit have what now thinking won and a high probably demand. Because for have And longer XXXX, we bit your right normalized sales? they elevated you are the the if more the are more SBA could year. going with term maybe just share market, over into clearly think But maybe last guys I a

what's of at? level normalized a looking So, we be should kind

Lindsay Corby

Yes.

the that right So, liquidity in there the are are the by being and now market. subsidies premiums really driven out the

So, year been think an this I particular. has do that anomaly in

really of So, historical premiums look and it's volume. historically in function terms of and a back guidance, just I'd

it be continue to So, originate in and the past consistent grow you've years. the with will year business seen and we slightly continue more to every more few what

just the on and that put been I that. able just government year been the think phenomenal subsidies to has capitalize in this we've really place given

Tim Switzer

Yes.

need could excess all sense. competitive loan And lot a more. this really deploy. hearing banks they liquidity one with makes get have I Okay, about if We're to market

competition-wise? where So, seen it's more a And talk little if intense have as any you well? your categories about than that market others there's guys bit you in if could

Alberto Paracchini

Sure.

sure banker think I market agree that you market to say cover that it's we their that. I'm tells the every that I fair with is think would most competitive and you ever Tim

by I yes, in is compressing. has the competitive into probably Pricing the most compressing. came than say been widened is had certainly market been followed today. CRE. say It's wider So, the relative is today I CRE terms C&I and competitive. would market would year it

very of seen next been deterioration sense structure far has So, and -- competing terms to shoe you're that -- the C&I probably probably it -- I would to say it's although But competitive a set those in so a I drop of is speak. makes pool consistently two not because have customers. we

and you're customers to creditworthy for establish competing relationships. long-term You're trying

to of try of win time. business that context So, business generally to being going the people really in for period an aggressive are to with bank the the be extended first

in pretty little I On anything of steady. pretty think but we've think some again approach And with more with And sponsor, bit the competitive, been businesses think operating if SBA I leasing how seen we accustomed a have our other disciplined been I in. in we what what within again, bounds front, like to that's consistent niche that. are we

Tim Switzer

Great. color. the Thanks for

Operator

Instructions] comes go Please Janney Montgomery. The question with from Brian Martin [Operator next ahead.

Brian Martin

Hey, good morning guys.

Alberto Paracchini

Brian. morning, Good

Lindsay Corby

morning, Good

Brian Martin

a guys of core pressure Lindsay was earlier, the expansion that even you margin PPP. the there nice to coming yields and a quarter of Could give under yields the -- just be context little maybe little kind thought on loan just to Alberto Lindsay's loan the ex just on the the may some comments this but in

be what loan of kind understand context those environment? And forward that the was of would to the yields the of trying given quarter? competitive going that guidance under pressure just driver just this So, the then certainly

Lindsay Corby

Yes.

really off that. pay in driving really the is yields think wildcard terms what's of I with loan So, the

we've and we yields we at what have can't seeing just times deals. pay have been So, is higher offs loan replace that those

So, comments, we terms bring of that mix for are you're there loans my of loans on. the some that's seeing in other reflected of And But headwind. what I and sure Brian. think types what's upsides in

yielding higher guarantee. percentage SBA at to So, go are to the example for X.XX%. expire, prime a for subsidies example, The we'll XX% back September, loans X.XX% SBA a plus in

obviously So help those of the will margin and offset that. some

the and be come the what replace as anticipate things we've wildcard. we And again if are seeing there's assets payoffs will pieces. really these less moving higher-yielding it's off payoffs very But So difficult to than again, And given are better. them. been

Brian Martin

you. Got Yes.

just at with that Okay. new it I with legislation or that out legislation of guess this out a outlook what with Thanks there's seems some could seeing kind all, benefit you you're there. change to that there for regard like -- some can be there is that's out SBA then talk could new I new legislation on the help been there. comment And the there? the of the guess kind there just guys for

Alberto Paracchini

recently only Actually, that new essentially benefits I've Brian bill ending -- thing infrastructure is the very taking the some sooner. heard the of potentially the

-- to But fiscal pass of were as Now then money. by in that It that's the impact this -- recently subsidy if frankly scheduled sticks we've bill though September far know anyways. the that away President subsidy bill that year signed But latest payments legislation the the remember and would pot at would most from of potentially heard week. the and as the doesn't to that's different end quicker. the go we the comes end the language be a was

Brian Martin

Yes.

get these you plan more you lower of and clarity to feels Okay. of into book. All sounds it as guess clarity subsidies things I in guys the just the though guaranteed get these more mean it you changing still guys I we on there's reserve And you're a I'll carrying think as high kind for as some and then as down? guess about reserves that opportunity as that move general level I of that. is right. that like check government on wind

Alberto Paracchini

to though I that continues you on us for degree you see the would think in account portfolio provisioning grow fact growth the caution that the potentially the portfolio. to would naturally overall to -- I obviously

mind. keep that in just So

Brian Martin

Yes. you. Got

year next maybe guess would on appropriate? the in me other Okay. guys what you banks PPP of get on seem And timing the that Does that still given try forgiven from some and for -- resolved just the expect I we've this some seen -- commentary and I or into to of is PPP bulk some one year? seems then tail the guess really it the last consistent

Lindsay Corby

Yes.

will recognized I of there -- be it think but of the sure. the be the for majority end spillover be will year by some could

Brian Martin

Yes.

Okay. All That’s congrats quarter. right. and the thanks I great and all had, on

Lindsay Corby

Thanks, Brian.

Brian Martin

Thank you.

Operator

follow-up And Sandler. ahead. we Race with Piper Please have go Nathan a from

Nathan Race

Yes. appreciate the I question. follow-up

bit growth continues balance on I expectations sheet the the growth saw a unfold. an question process little a deposit Just we forgiveness average to basis. as slow mean in quarter on overall PPP

earning well? half overall is that into -- growth forward, more in we asset do sorry should the remix this continues as XXXX or back about you curious So runoff I'm be and as it going just expect equation the thinking year of of XXXX a guys PPP

Lindsay Corby

Sure.

So excess right? as deploying loans change that down. as to continues, into we letting and the the loan liquidity see as long like have run continue to growth mix that And portfolio we'd obviously, securities

redeploying So it's really Nate terms both little here. of a bit of in

reminder a on as sheet. PPPLF balance we So do our have

factor well. So that play a does as

mix to grow So remix in like loans of to to possible. loans balance and wherever yes, the terms sheet into more continue try we'd

Nathan Race

generally just the sheet you run or speaking to loans grow of as do But some to balance that balances extent? mean on Got the liquidity remain asset off, expect you kind I of to earning it. kind PPP expect do

Lindsay Corby

that's It fast. that to months off to to going to mean the the nine we be will still million six have call I be remain and coming of course deploy it's $XXX some it it going extent. here over tough months next to

come overall down earning it see of I assets. think a you'll terms little bit So in

Nathan Race

again, helpful. everyone. Very Okay. Thanks

Alberto Paracchini

Thanks, Nathan.

Operator

This I remarks. like for to the question-and-answer closing would our Alberto any back concludes to over Paracchini session. conference turn

Alberto Paracchini

Great. operator. Thank you,

we call our forward Byline you quarter. this for concludes today here morning. your and On us behalf that you to in look Thank speaking again with of So of all interest you. next your time thank

Operator

you now today's The for presentation. conference has attending concluded. Thank

You may now disconnect.

Byline Bancorp (BY) 1 Aug 212021 Q2 Earnings call transcript