BY - Earnings call transcript Q4 2021

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Operator

Good morning and welcome to the Byline Bancorp, Fourth Quarter 2021 Earnings Call. My name is Melissa and I will be your conference operator today. All lines have been placed on mute to prevent any background noise. After the speaker's remarks, there will be a question-and-answer period. [Operator Instructions] If you are listening by a speakerphone, please lift your headset prior to asking your question. the is note recorded. Please Instructions] conference being call [Operator introduce would Head the At I to conference Brooks begin this time, to like Rennie, Relations, of call. Investor

Brooks Rennie

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

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

conference to the measures non-GAAP GAAP, our For turn the of see over earnings now additional Byline about Paracchini, risks disclosures President in financial like I please statements and to and forward-looking Bancorp. uncertainties, release. Alberto would call

Alberto Paracchini

results. our morning, call on fourth Good and thank us year-end the Thank for to everyone you and you, review joining quarter today Brooks.

Credit morning our Herencia, CEO, Corby, CFO, As and Mark always, our this Chief are Chairman our and me Roberto joining the on Lindsay Fucinato, Officer. call

on will about brief the over detail XXXX our walk our quarter you results. results. then want to making highlights Lindsay, and through some But comments pass by the start with I to who call the provide our first you practice, the will for I For full-year

to years The the X last unprecedented. been Slide of two Turning deck. have certainly

fastest activity hand, Company million contraction strong back we diluted of and And loan results diversified Reserve saw the the Income our full-year stimulus the deposits grew which share. and context performance per we and average of memory, one in economic was for shareholders. business fastest results, deepest of evident. results of for PPP were bottom-line and and very in X%, while followed experienced or and in year. activity grew value rates and $X.XX the On both reflected interest economic massive Revenue recent EPS backdrop the our the in the Federal Federal Government. XX%. for model from strong X% ultra-low $XX.X loans by was that the backdrop, year record snap our inclusive quickest Net this The in the delivered the for the portfolio, In

decline predominantly Overall, points basis to capital of across to dividend million XXXX in metrics with board, showed which in share in us to XXXX. with in net credit from exit improvement resulted $XX.X credit basis by allowed of the first relationships. common expanded In points going we half Dividends took the repurchase our returning $XX.X Our shareholders we consistent ROA, in by when summary, million paid $XX.X returned we story Credit ample program. the part also and year, our ratio economic recovery we growth on the stock, an with million capital advantage profitability efficiency over availability as to over our basis. of continued the the and increasing of and in to with capital year-over-year a to XXXX and improved of return quality our ROE important ROPCE a also was prior robust improved shareholders. which market in increased charge-offs certain XX year-over-year significant allowance XXXX, capital improve amount The our XXX% costs on year. repurchased a And to XX coupled basis. declined And shareholders. the

was the us in charge $X.XX charges at order in pre -provision record quarter -provision points. the non-interest came estate income the compared million Net charges, a cost quarter, of to our to results. expenses. these million at of per $XX ROA which footprint revenue income include and the share. was share. this our and results about for for $XX.X -tax real aggregate X.X% consolidation when at for fourth-quarter for diluted a in was puts pre in the Revenue million was income the branches on in per up the strong coming prior decline for these Moving interest increase driven but quarter, by million $XX.X quarter the net Adjusting to Company or a diluted by previous healthy an basis This reduce quarter $XX.X from and at -tax Collectively, taken pre our and million. related six to an cost pre operating $X.XX impairment $XX XXX

loans impact helped quarter sale loans. from with We're important quarter. the drive and saw consecutive credit goal solid million offset Estate of excluding grew of quarter. Real in Demand was from again, loan increased by saw the additional balances. An Commercial was XX.X% goal. some PPP, balance quarter, for remains C&I prior growth XX%. that traditional up largely excluding achieved Loans or which by another or in commercial production say sheet. X% to quarter to businesses, prior proud loan PPP growth the the our solid activity utilization portfolio. billion the we've increase at leasing for of runoff year annualized in third XXX for million in end of stood Line mortgage $XX.X the the this Moving residential leases, us We and as X% replacement This the offset $X.X quarter the and across our C&I, of which the which ex.PPP. Year-over-year growth the with expected PPP, $XXX million, of an offset loan helped loans, onto helped

strong time to production Our remain for lending as became access by loans, with the the for on We States, proud needed number a year small fifth XXX first lender fiscal guaranteed and We're businesses XX.X% of one for business to in year-over-year the government United in basis. largest third-party million in up state closed the and X(a) ended lender $XXX the supporting the capital providing our to them had succeed. Illinois. performance loans of committed dollar

were in growth money coming as quarter, that essentially had we Last market quarter, same the with ended primarily commercial the encouraging. third Deposits billion early in I the online from begun and Moving came of accounts. year and capability out core $XX we're from Liabilities. accounts from activity, this rolling million accounts early approximately in that over second at $X.X with for to deposit be results consumer the and quarter flat mentioned deposits We our opening quarter. end, we'll

and strong well-positioned if for respect points exclude expanded up Our short-term reflect DDA from flat to quarter-over-quarter PPP X.XX% expanded yields seven increases Deposit non-interest-bearing rates. you total X.XX% higher deposit the point The margin With remains at our we expected in representing by to cycle profitability, excluding basis deposits. of XX% and low. income from loans, five margin costs also quarter, a accretion remain on be loans. drag to last basis with mix and continue overall, we're

investing towards expense the order reduce we business. in to the in and headway expenses continue took in front, On to this continue to efficiency and make our area objectives actions

basis Our adjusted efficiency about on ratio by XX% XX just and improved was points. basis year-over-year a

outlook a to having quality environment. percentage continued improvement benign pandemic the terms. NPLs dollar for Asset to with during results our continue We as to these and show saw area overall quarter they our credit, NPAs in issues remain emerge the reflect We identify coupled in Despite monitor do with continue both not and granted environment from they vigilant were positive portfolio results in in liquidity potential and to this excellent. both on we market. the declines take and actively as borrowers ample credit a

quarter Our room results. our and balance pursue returning but will the expected continue turn do share our capital accretive the to which that, stock, with Yesterday, Lindsay. ample redemption growth, franchise, detail Lindsay, while We is investing as I'd to to call occur organic March during existing sheet to continue announced ratio strength the opportunities total shares on strong shareholders. to authorization. preferred XX.X% remains on repurchase provide over our of like of more position in it XX.X% We Company's the who support With you under not as repurchase CETX to capital have well our XXst. believe positions our had that B to quarter we end. of and approved so of Series the capital did Board

Lindsay Corby

Alberto. on morning, loans and Slide Starting everyone. Good Thanks, with leases X.

$X.X net December $XX million at total primarily PPP Our forgiveness. by XXst, Leases were Loans billion a decrease & driven of

Loans PPP, & prior from $XX.X quarter. increased million, Leases Excluding the by

million we payoffs $XXX came million the to As $XXX fourth were compared quarter. expected, at the quarter elevated in a and in in third

Portfolio, increased reflects over the Portfolio loans billion our core loan $XXX.X Mortgage client PPP, our which and Originated for core are net XX.X% and portfolio excluding originated Our Loan commercial increased past excluded, PPP lease Residential the Loan a and the growth approximately the When quarter. year, base.

some high single-digit we growth, payoff and for loan loans activity. normalization mid of year, believe lease growth see and the terms assuming In will to we

Turning at government-guaranteed our to Slide we'll lending business. six, look

The the of of XXst guaranteed was which lower is million approximately As SBA. than SBA Alberto million another being very by discussed the prior strong prior USDA million, $XX end of quarter from million $X X(a) The exposure $XX quarter, earlier, with down end the on sheet $XX on-balance December $XXX production. of million, sheet the $XX guaranteed. we had balance the exposure was million quarter

trends continue see We improving portfolio. in this to

of unguaranteed prior a As at as X% just X.X% to slightly loan above allowances, we've our the the end balance of result, quarter. the percentage from decreased

growth are total about of Moving deposits commercial and XX% deposits. on replacing higher we Deposits our our X, saw to of transaction Commercial lower that cost inflows deposits non-interest-bearing as see cost we time deposits, of over categories in to deposit continue slide represent half deposits.

expected, eight As cost points. basis total at remains our flat deposits of

on to Moving margin net eight. and on income Slide interest

in On Loans & a Loan, the $X.X points Accretion or million average basis the quarter. margin QX balances quarter. points for Income net X.X% to to quarter, down million net Acquired in income XX million from up Our $X.X increase a the was improvement Leases funding contributed from and on last margin result earning contributed the basis, combined, for quarter. and and the quarter. robust XXX for into end PPP the of the GAAP higher fourth $XX.X basis The quarter X fourth fourth of costs. X loan to of interest an compared quarter, due basis benefited the from assets, quarter. million interest basis income primarily the This during quarter, point for lower was last last fourth fee also net interest as quarter, points on average was the from the prior third income of our net production yield the for release interest X margin $X.X the

are net well asset-sensitive excluding our impacted priced portfolio. PPP, will than by loans PPP and and interest wedge should be More of over our to $X.X GAAP fourth half in have loans X% net of an are by estimate the to those in higher the recognized of of we currently PPP, point future. approximately rates our from interest balance the to XXX quarter, processing course basis. sheet increase fees increase from which basis start result forward, believe is income XXXX. the a principally X% as We of these on rates loans, at driven rise begin sensitivity interest margin of Looking We Up interest We year. in first an to the margin, will half remains relatively remaining take believe to advantage Accretion be flat during XX% the increase, annualized The net of asset the XX% million our in positioned expect be rate then rate. of additional floors excluding rates, loan that variable interest dollars floor.

our in loans the sales income up gains quarter. [Indiscernible] be continued XX.X% $XXX,XXX additional the to quarter, sold of volumes An loans prior during quarter. to in X.X% million during the of quarter. net Turning fourth the We of the The million average from quarter, fourth premium from primarily strong quarter. on $XXX.X loans higher increase $XXX.X Income was prior on Non-Interest the attributed increased at to Income Slide In due of net X. to sold. The Non-Interest

and Looking pipeline premium decrease XXXX government anticipate for averages. return pre we forward, and remains appetite our in but -pandemic loans investor to guaranteed strong

XX. expense on non-interest Slide trends to Moving

million $XX.X quarter. expense non-interest Our prior in was in the from quarter, the up $XX million fourth

expenses to held mentioned, for on fourth-quarter and charges As sale. assets attributed primarily branch Alberto was previously three our factors. increase included The related consolidations charges to impairment

of increase million held an expense, mainly due million charges $X.X saw we on on million $XX.X of other First, charges. consolidation and to impairment and for sale branch assets $X.X non-interest

we of increase million due salaries of to commissions saw $X.X an in benefits $X.X and $XXX,XXX branch and incentive from million and Second, increases consolidation charges. expense to related

of of million to expenses, government-guaranteed loans. lease-related and $X.X higher increase loan an with saw originations mainly in we associated related Third, expenses

up $XX.X that prior impairment for expense charges, one-time non-interest and branch million include compared Our million the to excluding was quarter, and run rate items consolidation, quarter. salaries the expenses $X.X benefits fourth

run believe we $XX million. and between will million the forward, rate, Expense Non-Interest trend Going quarterly $XX that

tends reminder, a the year elevated expenses. the start seasonal the of quarter Midwest. to a the taxes with payroll to be and cold more It's first As here other result been in

In addition, the associated cost until second realized will the beginning quarter. consolidations announced half saves that XXXX. be the previously And of second with won't occur branch in the

manage We organization. expenses find continue our and lower the our throughout opportunities to prudently to costs

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

positive We during quarter. see trends to continue the

this We saw loan criticized during of a million which resolutions took classified to despite quarter. and quarter, XX. release, plus the to of by leases, basis all excluding total Net points quarter loans and XX from and a non-performing points points ago. increase Our in average excluding quarter, decreased declined non-performing basis basis declined increased and from leases. XX charge-offs our -- a for quarter. total level market at leases points XX assets. as loans XX government-guaranteed of in of represented had due PPP loans loans, points XX points points of advantage of basis and from our basis was of categories we negative which to total year this leases and XX total non-performing high loans by measured points improved assets provision and prior the basis care XX of the $XXX,XXX, basis loans basis primarily We continue during average to decrease to OREO adjustments, a have December observancy, loss opportunities, acquisition loans the net accounting XXX and The charge-offs a allowance our $X.X

slide Turning XX. to

through and As share performance our financial enabled the expanding our our have Alberto capital to dividend to discussed, capital accelerate position repurchase of us strong return increasing shareholders this program. and year,

book share Our in back Alberto stockholders XXXX. that, X% while returning to you. tangible per With capital value increased XX% to of

Alberto Paracchini

Thank you, Lindsay.

from outlook remain to the remain likely slow is up the XXXX. and year. required about favorable Slide that the outlook it like from But in strongly Turning year. our wrap to to overall and levels inflation constructive anticipated is on with to to policy the capital for I pandemic. market. ample would past the and That with today likely down XX, to few tackle grow of this and comments investment We XXXX. priorities than Notwithstanding, will both economy gradually the remain in conditions said for equity a The increase this seen available tighten higher for levels due rates supply debt gradually open

thank allow We years. to shareholders. want and our for to reinvestment growing and from this pursuing this like period for for challenging improving loan all In the that, pursue With while do and daily priorities, our relationships, market our grow capitalizing closing, continued supporting basis. creating Operator, value and and open a franchise employees they expanding growth, for to consistent clients terms on up during remain questions. for both In M&A. to prior customer disciplined strategy our by opportunities they resilience of the on for to let's do, add continue efficiencies I'd talent We call

Operator

asking your from please [Operator today, Instructions] please which handset is lift Nate first Piper prior a you. Instructions]. to speakerphone, [Operator ahead. Thank our Nate, We'll question question. move of Race you're via go listening Sandler. to coming If

Nathan Race

morning Yes. Hi, Good everyone.

Alberto Paracchini

Nathan. morning, Good

Nathan Race

start maybe the we the yields saw. payoffs given and the -- on just to margin ex. this that first maybe for just year. just imagine this there the some elevated prepayment the Maybe core PPP half start accretion are in loan penalties outlook of to I quarter elevated on

what's some the with maybe excess So the outlook loan of starting growth for margin good the first redeploy this single-digit to mid-to-high point you assets and in year quarter as the some look out remix there? liquidity guys

Lindsay Corby

Great question, Nate.

looking In terms this the of what happened NIM just quarter, and back.

of didn't outside prepayment coming any any there penalties most the through were flowing by there those through. we one-time prepayments weren't With means, penalties really -- see that

in course guidance way, year increasing relatively of here that, rates and that we of of beginning be terms the the it then throughout looking the So for rise. should XXXX, the is a in gave flat as

So my and interest end at ending the rate assuming in X% you the increases, gave of the numbers that year. we're prepared free at I remarks

Nathan Race

changing Got Maybe Okay. a bit. it. little gears

credit, looking about were higher your what were portfolio, maybe we've And charge-offs were driven versus by thinking quarter. little what seen from it these a guys. necessarily like not looks this guaranteed you we government Just historically than for lending

you out to that high over this that to guys I are fair that just So between be for mid to or to historical likely XX growth XX And pre -pandemic, provide reserve to needs in outlook that as imply for is anywhere add you for going to bps? within year? what expect this guys the does it charge-offs growth year, single-digit we've guess look seen range from

Alberto Paracchini

Good Nate. question,

kind a So higher. this are quarter, Charge-offs of unpack you that. let's little were correct,

on on on decided to we driven environment market about gave moved to and we take essentially legacy was old to taking credit remarks advantage some of the assets. the of some. that the market of commented fact disposition I advantage those some prepared what the move think accelerate us by portion of We a and

So simply Partly charge-offs you're bit annualizing the charge-offs were is just quarter. the elevated. a little for

that would I like say that to So the essentially that. We during quarter. one-time do a has a view as would with bit item

stipulated on the what I second outlook and same XX outlook, of to The point question questions of remains parts basis that other the range. your think you the to the third terms XX in in

can Obviously, fair. your change growth. good to you what to very lastly And point We're related this that's look to continue being point at comfortable continues environment know, want think at we're last I as We this seeing credit. point but stipulating. That with our benign. said, think portfolio. I things that's obviously the Yes. well demand grow for to to

I in to that, fair degree the that growth the that we're to see say to with going consistent to achieve the think So able it's provisioning you're portfolio.

Nathan Race

If priorities. capital I on ask one updated more could Great. just just deployment Okay.

guys sit you capital Now with a still strong very levels.

pulled You income along shareholders bit net group. a strong back the of returned Stocks this little a broader amount year. recently to with

sense get opportunities curious context, ago? about within how guys to how to return more So want guys or And just XX shareholders relative that to a you this are much thinking feasible last. acquisition to than you net for year days income maybe are so today

Alberto Paracchini

at capital either all I to ourselves materialize those we in the deploy and at you to opportunities continue then shareholders needs, Nate, have we shares. flexibility advantage dividend mentioned, disciplined our Board of. priority. that think world said, a in terms capital to dividend, it's if the to we flexibility don't the repurchase some looking That more look in also of terms capital answer we have buy And opportunities marketplace our at to to certainly -- reasons in remain our disciplined between the And we -- very we'll find take and the to that if capital. we that relative that, outlook. balance see for opportunities then able the with think the to I our than with looking being is on authorization has to I of is, been anticipated, back Returning be [Indiscernible] and question the in

the support think balance the sheet, So growth the I we of growth the continue to and the the in organic think don't capital to to then foremost, business. in institution where support continue in the order first want evaluate to is continue investing good news it. on the and market, we for shareholders for if returning become have a dependent And to opportunities of to us I use we'll that priorities available

Nathan Race

Got helpful -- it. Very

Roberto Herencia

may If -- I

Nathan Race

Roberto. ahead, Go Sorry.

Roberto Herencia

Sorry. returning says, value Alberto the add still we've shareholders and past know, No, returned much and surface to will support is -- the to priority been capital opportunities growth with if But been see you has I have in as slower franchise surface at as both to with and years. that do could and support our M&A way it may does constructive you been term and that capital organically has any in returning we compare capital very organic long then increase the rate capital. our to as look has few not peers, the But that case opportunities when at us a we we so non-organically.

Nathan Race

all appreciate taking sense. step the Thanks. I guys back. color the questions, I'll and Makes you Understood.

Operator

Nate. We'll Ben, you next go today, from will ahead. Hovde on please Group. to that Ben move Thank be question of Gerlinger our

Ben Gerlinger

morning, everyone. Hi. Good

Lindsay Corby

morning, Good Ben.

Alberto Paracchini

morning, Good Ben.

Ben Gerlinger

of take see there little position fix? of there, assistance you within kind on of that, that, could growth anything without aspect we I any juxtapose. area into earning mid-to-high-single-digits, think kind little could the there average to a start If guidance, from the the higher that of is could dig Is the yield growth rate that that lead and loan a bit deeper assets loan

Lindsay Corby

business units that. we of in couple provided, the last You're seeing in quarters. the of what really it's Ben, pretty we a say various just the right growth in across disclosed balanced outlook as we're that terms terms the guidance of and to

area any I'd And really really contributing there. say one that's So outside. that's what's there's not particular

able bit last from higher had than continue a of we -- remixing a asset think deploy level the of as pickup we the could in some of depending second I we yield, potentially first can and cash In help And to the loan earning what standpoint, in as to do past. quarter growth little that terms can are how this get start rise. and to you remix like on rates we looks an and see that had we've that quarter

Ben Gerlinger

helpful. it caveated XX we wages and then a you how Chicago in thinking overarching are this the XX think gives you to saying or of into when you guys higher. thoughts was that year optionality. you're relative bit Okay, the then, to sense in and are about I inflation the your is Is range always expense, that's little year-to-year, wage of you your to as disruption potentially And get adding of parts increase -- talent all on -- But guidance that of market the big the in some relative that combating embedding XX because that a

Lindsay Corby

Yeah.

Ben Gerlinger

talent. of investment --

Lindsay Corby

talent Yeah, do in expense in as some digital give talent adding time bankers teams have those look of terms the the bankers But And of inflationary to there. on ads about you embedded we we seeing numbers, throughout of led opportunistically, adding pressures that in go in that's any we're other range. talked We bank. and forward. terms yes, a that what as what's expenses, in there great don't across here range, question. are anticipate in and of debt And places we that have board teams and and at some and those the we'll talent progresses. We do terms We of numbers in there do guidance.

ads reflected year, course those over in are will numbers. we the of adding the and be the So

Ben Gerlinger

I can Got just And follow-up you. if -- then

Alberto Paracchini

Go And could If ahead. Ben, I add.

Roberto Herencia

how COVID. on I been of amazing to really the people thank Alberto, just organization of unsung deal apartment. just why some retention. was been a in expenses people, employees parts the They has who we of to talent this that feel. about job done him deal all to year, HR were we've heroes with in part with reflecting the and Alberto this the made that's there, say year, had good turnover, that the particular with the touch heard as you branch -- for some a and to It's our staying group. marketplace And the And talent. there the we've blunt results the you've gone really sure have in adjustments closures, going And really HR that were talked of employees have our lot in we make reality the for of the

been very right? area. has taken But we the in steps proactive we Commercial really people resignation its war our have for about work And in Chicago that great we've Bankers the are we seen. theme to coolest this and talent, the for feel to place with be So good that everyone where

Ben Gerlinger

the capital Yeah. That is a pretty your more to type oriented? strong the more or would pretty acquisition, to nature throughout in loan so solid deals, where growth, levels speak, question guys the you banking helpful. of deposits would to XX in It's And go you evident you you next think that are, pandemic. do lending have job is, something philosophical done not last an that's be your

Alberto Paracchini

something is carefully. that in other two but fee For would And or the approach the first categories. the business? opportunistically. would think think consider spend areas wealth some priorities I yes, answer would short in the example, outside be I of in we management that? related general, of I we say Would more

The really first our focus two lies. where categories are

-- something of priorities, doesn't course. of particularly instance, much really directly of just the lending that two we consider deposits, categories really the are very those business. in third the to are distant But in some related banks. specialty that for with two kind other side, finance opportunities, being and mean, What generating it's lines Now, of fee

Ben Gerlinger

Okay.

great on Congrats especially year, the finishing it. appreciate I good. year. the Sounds

Alberto Paracchini

Great.

Lindsay Corby

Thank s, Ben.

Alberto Paracchini

Thank you, Ben.

Operator

Terry McEvoy on be ahead. go next from question Thank please taking Ben. you We'll Stephens. of Terry,

Terry McEvoy

morning, Good everyone.

Alberto Paracchini

Hey, Terry.

Roberto Herencia

Hey, Terry.

Terry McEvoy

little Maybe question. a Hi. just

loans? of portfolio stepped you have over the back all much had of exposure, provided outcome loan your your would view XXXX, the not borrower. pandemic, that do different, and support, specifically events I looking the with and mean, SBA 'XX have government did call to X% having been guaranteed outsize and Just it change that the of in in some

Alberto Paracchini

I say to credit fair of pandemic, a I we think the with different environment, it's of very guaranteed years. couple think the stimulus on preparing absent environment start not government amount were the side, what think credit certainly the than the I at I of just Terry pandemic for we over the experienced think the last I think to have deal but it's

about larger got terms exposure, size think I In that exposure balance think if comment sheet way and today into maybe outsized than look data at that acquisition. business over mean, time, is is the your when I of our regarding that the initially of were you we we that

As both if year. that on look terms as down this actually data you I side mean, went have on Lindsay well as out, now exposure in side, the USDA breakdown pointed SBA at exposure, guaranteed the that of we

I the in by of largest proportionately we that in both that though would player we've to that are said, we solid -- and in the dollars. direction. that continue trend, to expand. front, the USDA opportunities business. on provided proportionately to and like relative say that that think fair the that's expect the sheet, to size proportionately, So business being the guidance continue we're is the likely to balance it's we think to SBA front, measured fifth want as to the on market as there today Even in we U.S., We as grow the well continue That

big and the us. As you gap folks largest certainly the above fifth that a are know, there's well between

Terry McEvoy

quarterly to million lender does team consideration hires. expenses follow-up the $XX clarify. for additional in of the $XX the left out Appreciate not to Maybe that. take potential Then just into million

Lindsay Corby

not does teams of include It lenders. Correct.

and on those, across guidance look side. So at update item the revenue and we'll if them we come based that our upon both opportunistically, we expense

Alberto Paracchini

opportunities -- as approach. Yes, We we'll advantage for for those know, of that's well actively commercial Terry, touched opportunities. as want an about, to We're just like our We on. platform with looking come certainly that. When take banking. feel consistent is platform consistent here outstanding that's you with Roberto continue our

will add actively report opportunities back we're those to you to certainly that, and arise. looking So continue but if to to when we

Terry McEvoy

so Chicago miles the as great. best where XXX Thanks, to sitting every It relative appears that find you will that. great a that be appreciate to bank other talent I within position opportunity keeps everyone. talking in of that you're growth about

Alberto Paracchini

Alright.

Lindsay Corby

Thanks Terry.

Operator

Thank you, Terry.

KBW. will DelMonte Damon next please go Our question be ahead. Damon, of today from

Damon DelMonte

morning. Thanks call everyone. for Good taking my morning, this

pretty So think on sale but get of highs historic where wanted -pandemic just color SBA Lindsay, on be asked been that see and remain you still you've down more -- and favorable, bit around my should of referenced much loans. volumes bit the the little have questions will to could pre I most off a gain answered, levels. a outlook margins coming

the year think million, levels the that look So you in of over suggesting do that's down the or trend that? last towards -pandemic be as pullback going back results mid-XXs you at to for the you less pre like are for $XX will than

Lindsay Corby

question, Damon. Great

of things; of second terms really are Is originate function one volume terms the the it's In what we a sale, the and premiums. the two on of in gain

my premiums, guidance So is related not volume. the to the to

Where if will a fourth-quarter discussed, my So we you of assume should see we want side. back around terms was where see to to of premiums. deck that around at Alberto the continue business, in what premiums guidance and pretty to they continue premium And grow. you feel look give as on pipelines XXXX, you and than hovered the that to good guidance. our we the grow volume anchored the continue Damon, was that and good there you'll

Damon DelMonte

Thanks to provision the and And then just outlook clarify Okay. on That's for helpful. going pointing the out. forward. that

that the commentary Is you what I basis between expect points year. the XX and of provision With heard? XX for that would

Alberto Paracchini

charge-offs, related Damon. No, I to think the question had been

Damon DelMonte

Okay.

Alberto Paracchini

historical what our we'll essentially to continues to portfolio. growth continue And commented made the then previous in agreed And we we by the I just that guiding we've been expectation. had that related the and at comments our were to the -- we that's growing. pattern that that, portfolio really is other If it's think that rate driven to been grow

consistent should I provisioning think that expect you growth. with

Damon DelMonte

very right That's that I All much. Thank that's Okay. had. all helpful. you

Operator

is you, [Operator David. from Martin Janney Brian, of Instructions] Montgomery, Final Thank question [Indiscernible]. Brian

Brian Martin

Good taking questions. the morning, everyone. Thanks for

-- that to I in back did grow want SBA covered. down, you guess, if talent business where the premiums just to the just just you're a wanted the about, Just do can cover talk I come get investment to if little that but going in talent -- bit sense production? investing a the you But Damon

Alberto Paracchini

specifically SBA? talking You're

Brian Martin

think I the and Yeah, -- that's

Alberto Paracchini

lending businesses. The comment, across I our general, say more would

some to commercial attractive the talent add are it call banking there in, we space. both would there's there. that C&I So very to want and space look verticals we think I mean, to

became traditional On people hub those centric for look in order are, standpoint. lead BDO look that reach necessarily room lot referral where of try kind of grow would to to If the to more And our very and over and expand is ample we be a whether our find for from if talent the of also a given whether people SBA we business. generation sources, geographic they different to to that front, irrespective we continue model. much digital both that opportunities talented loan geographically the have a in business. traditional build model right still that ways as then we generate first that of commented we've opportunity look we to And years, our be to a available have the way outside model, kind of support today today,

our think interesting it's and lending across some terms board, talent, opportunities all have of back of that we but on across point your to units. the based end, in I broad going

Brian Martin

Got you.

would loan about sheet growth? a do stick the thought year Alberto. balance think this Lindsay, and size had how of sheet given about for initially stickier balance Okay. That's maybe guys you on been think the outlook then they've while, as helpful. guys just Thanks, quarter, we the you size the -- the than this how do but we deposits, the for just occurred the with And growth, of progress around what

Lindsay Corby

balance sheet, I flat, prudent the the the kept we and cautious to gave around pretty terms securities say the there. is around remain of So continue grow to and we portfolio. you Brian, and we've long, in want I'd think we guidance -- of size securities portfolio it

in be cash is to The that important supply. outlined. off say, sheet. going you balance And grow terms securities loans size as loan trying time of mix and should to at events overall the the most hopefully, they and of luck and So over portfolio in that as help come we've the the to mix and looking and

Brian Martin

Lindsay, growth thinking guys you are that about how deposit general, this in In year? Great.

Lindsay Corby

Sure.

particular. great we've So in really growth yeah, commercial seen base deposit in

to see the add that whole continuing pizza both continue we're if new outlook to and to new bring great we deposit relationships. on lending on lending a the side. And we and So relationships, looking get business we're

we coming good we We are with good the we bags funds are So projecting, stimulus like not opportunities CPP as in saw outlook. see into have but a predicting they past, obviously see seeing there. we're the

Brian Martin

And right. maybe just All one last for could. Okay. I the me if

I how that? and on just your Just on impact just run through comments, Can Lindsay, the rate of a the guess the the less also it then and -- just sounds couple plays of and that first level floors maybe like asset that, but just then you sensitivity the -- increases. rate further. little versus has maybe a impact I the and back increase missed the

Lindsay Corby

Yeah.

net in annualized X% in So interest the XXX point was result guidance to income in increase X% I basis. increase for to on basis an going dollars about gave that rates

gave. So guidance that I was the that

some just we to at give of and X.X million million floor. $X.X rate variable loans, Brian, of the of terms to are those rate of numbers percentages and X.X I loans, the you help those here, billion you have In I floors, think have gave variable

will what you're movement all RPO. gives of almost the some I'd right, that a points, XXX be higher. you So will we're the of seeing. loans And and basis first reset sense the in floors there lag say in in terms

Brian Martin

rates that how then would just in minimums the I be fair beta from Is thinking betas is the hikes a And maybe Okay. about outlook pick up. it something outlook? deposit you're paid guess your standpoint, on then first on couple of your will what's and assumption

Lindsay Corby

that's assuming think stays where think and I that those Yeah, status liquidity a lag. Again, do drivers competition are change the natural quo. that think I at biggest at but could two it's I remains we'll fair, that, see

Alberto Paracchini

that go as out and there's get would what without where Lindsay and feeling is of at institutions you thing institutions helpful room to outlooks pretty pressure and higher of the market Chicago and their a forth growth add I seems portfolios. that to little look from market the think at in Today margin, I are the and that this move far here. that to loan-to-deposit ample of 's so wanting ratio and To because your betas to point, Brian grow terms just modest is in to comment, historically, One seems in are the area -- help a to as go guys I think, ratios loan their to fun. think the loan-to-deposit about for point have to how bit the think here context

beta of that to So on go the eye just faucets keep an good be that of a on timing tends because predictor and where pretty that is move. the

Brian Martin

taking a Thank Okay. you for on great the year. Perfect. That's helpful. questions congrats and

Lindsay Corby

Thanks, Brian.

Alberto Paracchini

Terrific.

Operator

closing remarks. question. your you now for Thank questions Paracchini Alberto the That any thank final hand today. And call back all I'll was Mr. to you, for And over our Brian.

Alberto Paracchini

you, here, speaking forward for today, us Thank Byline, you your and in of of interest morning we thank to Great. your That behalf next Melissa. concludes to you our call look time all this on quarter.

Operator

of call. Thank day. This rest you great for your a all have today's joining, concludes and

Byline Bancorp (BY) 28 Jan 222021 Q4 Earnings call transcript