BY - Earnings call transcript Q1 2022

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Operator

Good morning and welcome to the Byline Bancorp’s First Quarter 2022 Earnings Call. My name is Emily 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] Please note the conference call is being recorded. would for introduce the Byline I of Rennie, conference time, Relations Investor Bancorp this like Brooks to Head call. At to begin ahead. go Please

Brooks Rennie

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

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

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

Alberto Paracchini

me our are CFO; Lindsay CEO, joining call. Officer. our us and Herencia; and on to with earnings first Credit of everyone our Corby, Mark you welcome appreciate Thank good morning today Roberto We Fucinato, Chairman call the morning, Chief you, Brooks, and quarter this all

you for for As this provide start the the to call quarterly opening call the I’ll over practice, walking quarter, questions. Lindsay highlights by who detail results our before more on up then through and the pass our you normal

X of Slide to over the Turning deck.

quarter call, we would During aggressive correct we first of fact that the out Fed one trends elevated in on quarter’s XXXX. expected volatile the periods inflation, be to And mentioned areas. and we that the in excellent momentum more had key the seen than by most from first were that Notwithstanding turned in quarter XXXX Ukraine, delivered the driven challenging last continued several a the driven first were The into results. carry-forward response positive by the assessment. situation we’ve we results quarter

loan part of had we which activity pay First, terrific aided utilization. in growth and the during higher by lower line was quarter,

quarter, year bit essentially the per continued basis. from growth to for Second, generation a up robust we XX third, a All was said, deposit business ROAA diluted think was were income when and XXX quarter which basis don’t to lower to this quarter environment but the with capital granted the combined increase be stress. revenue puts or flat grow came ago which quarter of pre-tax $XX.X million, us X% came proactively and points lines Revenue outstanding year-over-year too pre-provision Net this at an at in ago was for while in sign XX.X%. or the on $XX.X $XX.X previous basis and Profitability and credit long up the was compared quarter will to pre-provision been we’ve be came previous strong. to solid points, for business [ph] $X.XX take and to and return quality, which continued million continue operating that at the always at and so strong in And monitor any business basis a for benign. Pre-tax a million, return capital to ROAA experience to portfolio year XXX when period. our in linked This board. metrics from the points share. ROTCE shareholders. period. credit our We across at allowed continue

Moving the sheet. on balance to

saw ex. million basis. PPP with again loan Loans as by or in This $XXX that The of XX% growing growth by PPP both solid consecutive annualized fourth or loans billion continued XX% loans, stood and quarter million on or quarter $X.X a the year-over-year excluding first was deposits. $XXX very at growth end. and increased culminated quarter

from million to the strong $XXX first we overall be The Notwithstanding businesses. activity business loans We our tends million saw lending and the seasonally slower. up balanced customer lease $XXX for point, originations from benefit quarter across of activity. from On all quarter us their their strong were to continued in payoffs, latter lower prior this well originated solid increasing for benefited growth expected quarter, lines. we than customers use and and

tick loan growth. utilization saw which XX% up by to to contributed commercial we As point XX% quarter, last one percentage from

decline Credit five Net balance quality in year. our sensitive expected us by from and over with income terms at million sheet quarter charge-offs of production balances. quarter. lower note, lending quarter. the year-over-year year, quarter management the grew fee our Total the stage or board basis. are next were The this money to top strong environment. at at with and based quarter quarter the our X market and growth asset metrics terms. high just quarter-over-quarter The XX% which the exclude of NPLs, PPP wealth decline XX% positions and a coming Deposit both Of and strong to X remains $X.X points, size. fees. XX respect quarter-over-quarter basis CETX against in by accretion X.XX% for very absolute the for banks $XXX XX% under margin basis. said deposits and by basis were million With continued which mix X% and both the was loan came $XXX to points rate annualized strong quality between dollar fees, NPAs flat well fourth stood peers. were in in remained our both a as a representing than quarter level XX% relative remains remained at primarily Our trends balance with quarters the and a declined the and ratio pricing for cycle quarter margin an X.XX% and pickup of interest expenses and was billion a material last strong which to driven well we are coming several That million DDAs of remained prior $XX.X for us If on decile remained XX% for margin and profitability, up low contracted under not to and quarter. and PPP XX% at increased a last basis company capital points. results asset The Deposit XX% up to improving accounts. was revenue last both favorable basis another fees This loans, costs from last in primarily combination a this over with efficiency record with income, respectively. our had on XX% end on closed Capital government be for year-over-year business of strong as deposit by nice managed with in percentage but total expected ratios solid just from the the guaranteed lower in quarter, across during of continuing and

approximately repurchases preferred capital Our of shareholders Series March common to continue financial XX. XXX,XXX and addition the shares stock. our our on And B share. allowed stock dividend return capital performance with This to redemption base in strong per to $X.XX the being common us of to quarterly of of

well to the best provide sheet, in And detail you I’d continue to support the we franchise believe call our over that, of strength Lindsay organic return the and positioned capital to like results. the more with turn to we’re Given on balance and who shareholders. growth

Lindsay Corby

Thanks and X. Alberto. portfolio on Good on everyone. lease with information some morning, Slide loan start our I’ll additional

the $XXX quarter. of billion XX% loans Our and end leases XX, of prior the March total $X.X an or were annualized million increase from at

the Excluding PPP increased million. million quarter. $XXX leases payoffs and to saw loans the down million moderate $XXX.X quarter from prior for by We $XXX

the when portfolio the originated increased Each prior million from are quarter. loans the excluded by commercial of portfolio quarter. area $XXX lending for Our increased PPP

and While pose a may guidance with range macroeconomic towards loan level our higher normalized of conditions year for lease activity. the heightened end single-digit our the payoff of growth we are assuming high reaffirming uncertainty, projected

At Turning government of $XX the higher which lending balance March million, guaranteed XX, look at with the the end by guaranteed was SBA the balance the being business. million prior of quarter $XX exposure the prior $XX guaranteed. million SBA. $XXX sheet million on X(a) is X. quarter from end flat of approximately than with The USDA exposure $XX sheet to at Slide We’ll on million our

in portfolio. continue We improving trends to this see

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

Moving over Slide to on deposits X.

that continue of core continues to higher be strong Growth funds. deposit concentrated from trends. transaction replacing commercial We benefit are to our in deposits cost

to our expected would total deposits. deposits pricing X of As deposits of rates of a Time about year. this and anticipate rise at XX% pressure XX% some half flat deposit non-interest our cost total basis deposits at Commercial total we later of points, represent point with deposits. deposits expected remain bearing represent

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

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

for increased interest PPP XX.X%, up net quarter income basis and to the with to loans volume prior down to growth. quarter the organic income was for million of fees of period. was margin million quarter, quarter, Our quarter. was X.X% decrease interest and the primarily fee income from acquired as of points the first X.XX% X on points from for quarter. points interest X lower contributed net the for basis, interest from from loan but to in $X.X basis quarter. the XX replacing PPP This up on Accretion result the $XX.X first GAAP a net combined net due from a interest our basis year compared lower last basis quarter, income year-over-year On PPP first income Net basis forgiveness. last last a loan $X.X the XX a contributed margin loans million ago points

PPP, over which our will be forward, expect of impacted be Looking remainder we to fees million year. recognized processing from by of the remaining margin the $X.X net the GAAP

profile growth result we to XXXX. environment, margin, begin interest the our organic As a expand PPP will and accretion our net rising excluding our asset rate of sensitive believe and during

result increase balance on balanced that well net in us asset and rates. down the of positions Slide driven believe for and to point $X a the sheet is XX approach in X.X% to million $X stems sheet, maintained curve. our an to estimate of short loans our income which further we risk. by increase a will managing excluding balance on rates. Approximately income The net it rate break balance rates the rising interest in an of our of loan to X, increase every annualized sheet in instant, XX% additional have of XX% from interest result sensitivity point Moving would basis. portfolio We PPP asset interest million intentionally that sensitive variable we approximately is end principally additional XXX asset basis sensitivity of an basis And interest are

non-interest continued a In asset ago income sold strong other the income revaluation increase in loans quarter. at prior as be our swap the income guaranteed X.X% income the which Slide The servicing lower to the X. than XX.X% to period. the The a this change the increase higher an quarter, from to million year government We quarter, from net our quarter. non-interest of small fourth increased on XX% quarter. first premium due average was of attributed was loan expected $XXX.X in during primarily quarter, non-interest first to and Turning

pipeline returning XXXX Our premiums remained loans government throughout guaranteed and for to decreasing we anticipate pre-pandemic and strong, averages.

Moving to Slide on non-interest trends XX. expense

was decrease two of the or $XX.X $XX.X decrease the XX.X% attributed quarter. factors. from in million in million $XX Our non-interest quarter, first a primarily expense prior million to The was

to we asset were loan recapture expenses which charges, expenses, decrease the First, saw and in approximately $XX.X a we decrease related due related million. a quarter leases million during million branch consolidations saw and second, mainly loans in guaranteed prior $X.X real of to our impairment And of government $X of estate a of the taken strategy.

in the a the announced As the that previously occurred be reminder that cost with have And will consolidations XXXX. branch realized second the of at quarter. beginning second half associated of

expense gain and to for focus quarterly $XX We rates continue run $XX believe to run million non-interest our the opportunities rate will on efficiencies. and between million. expense We look trend

XX. Slide to Turning

current Asset prudent economic quality portfolio, conditions. culture, diverse and remains reflect risk our strong. We

Our points XX total basis points to of nonperforming declined basis assets X assets.

leases. declined points decreased X nine prior and average charge-offs loans on basis the from nonperforming basis total to in loans basis XX and Our of points Net loans points quarter. points XX basis leases

quarter, credit Our to March compared driven conditions, of of provision the observancy, for adjustments, during plus associated expense in in geopolitical take total believe believe the and and and loans an allowance The continue by We prior macroeconomic the loss which levels events. rates to loans loan growth increase total was also the inflation, excluding due measured was uncertainty have basis lease changes with the a increase in XX. We quarter. points mainly acquisition of as reserve factors rising first qualitative into basis $X points high million we XXX account quarter XX to but portfolio accounting our the and provision PPP leases current at level environment. by reflect represented

reminder, still are a reserve As accounting the CECL of we we incurred will adopting end model, be loss the XXXX. under at and our for

XX. slide to Turning

rates strong. value, liquidity of with Of reduction in rise and a preferred securities sales loss rapid an available resulted bank’s on an levels remain unrealized X.X% earnings net dividends, capital in for the combined $X.XX common book resulted Our that note, repurchases, a decline. in tangible the share and

and to stockholders opportunities. Our Through return believe common the XX% total equity both ratios organic first X.XX%. tangible dividend to program. we well And us at capital purchase our above to assets the three of of strategic pursue remains our months the we position common share earnings our year, our stock peers through in

to will We manage you. to through our capital repurchases. opportunistically back continue share Alberto to With seek that,

Alberto Paracchini

Lindsay. you, Thank

remains remain on as see, strategy it. focused our Slide on you laser to and XX, we can Moving executing consistent

positioned by we’re optimistic by the and Fed, the opportunities both is this uncertainty, of year. outlook challenges Despite and corresponding we’re for potential the high to for tightening headwinds, the the the the complicated geopolitical well forecast inflation While macro the aggressive creates. environment on rest tackle outlook

strong. remain pipelines Our

into well growing translate Our relationships, bankers which and and should focused business growth our existing deposits. new loans is are on in diversified and

In shout strong again, once about the optimistic clients, employees organically growth I’d closing, continuing remain to their for like for dedication, work. in and our And Emily both up also of through We opportunities hard to while to call through front to and M&A us, create out value for our with performance who commitment questions. that, shareholders. open enable let’s

Operator

Instructions] the [Operator much. first question open. very Piper comes Nathan you today Sandler. Nathan, is your line Thank of Our line from from Race

Nathan Race

everyone. Good Hi Yes. morning.

Alberto Paracchini

Good morning.

Lindsay Corby

Nate. morning, Good

Nathan Race

well. quarter, conjunction just that with on deposit super really off Maybe a impressive obviously loan growth just in the to see growth as start strong the

chain and are the out we clients issues just definitely gains the just with drivers other So maybe other kind with or digging share the curious, to growth of there delayed supply projects all should – thinking additional be dynamics deposit of or about? uncertainty liquidity the that perhaps excess function holding in of quarter, onto a there,

Alberto Paracchini

Yes, of fair you it’s points It’s probably Nate, think a combination the all to that say. just mentioned. I of

I gains, So, liquidity relationships, existing the mean, in new system. in growth share relationships

So, it’s combination I all. is probably fair think to a statement of say a

Nathan Race

of disclosures additional Okay, the all going about book the accretion, impact great. and the rate floors outlook think well. the maybe floating margin just in forward the PPP, ex. I around deck And the appreciate then as just and the nature

exit in at XXX assuming maybe of is assume kind over accretion year? the the XXX of XXX the fair to course or the in maybe the bps, quarter NII Lindsay’s up year, a that by just So quarter sensitivity we PPP rates closer level get of margin kind to unpacking fourth to least this of a this

Lindsay Corby

NIMs Nate, do I really guidance it’s more give exact outcome else, don’t typically so but to on the we than So that anything an going think percentages expand.

remarks guidance $X of my points, additional NII. around to in million did so do And – $X give prepared XX basis we every million we reflecting

So, expand get help did will you do say. as but I we it I think should there, that think

up and deck, there. basis disclosures that of the can bulk a does see added be new it’ll points it’ll could the you in that really, that after that slower quarter little as we next slide the you the reprice the the then portfolio So on see pick because in XXX

that think enough good I basis, give there’s So, there you to a what look sense core it a should on like.

Alberto Paracchini

Nate, happened late the that quarter what and first the to to said, very came also tightening obviously the we add quarter. in Lindsay in

benefit rising from So didn’t hardly, of obviously a we we saw type benefit rates. but any quarter this hardly

you is well we pretty rates. know and good our relative margin margin today, we our as peer where pricing strong is So, positioned the we’re and pretty feel about think to group for

Nathan Race

Yes. nicely And the just of Understood. then turning volumes up versus That’s lending year-over-year were helpful. up government quarter guaranteed year, segment, they’re last the maybe to year. first last

guys how So, and, you team, a market loans. just lender are out of capabilities given big about Obviously the you those your dynamics seven guys rate the guess there. of I origination all floating kind think are day

So, I’m impacting are not there’s what kind in capabilities any terms and in demand bar on just likely do and rates volumes XXXX? of forward origination if have going done constraints of to, sure given

Lindsay Corby

we and job. team’s been quarter Yes. the it doing excellent over you Nate. out think really how to That’s The great a year. an question, four that did great volume’s last increased And point here

good. really outcomes into very interest play now, year. that we environment overall right the the robust will pipeline’s so Obviously the And it looks think and rate the for

feel the right pipeline’s and producing. and we really continue robust good team’s our we’ll execute ability to about So but see, now,

Nathan Race

the all color. taking Okay. you That’s you. the great. Thank and appreciate questions I guys

Lindsay Corby

Thanks, Nate.

Operator

go Ben Gerlinger Group. question Hovde Our Ben, ahead. comes please from next from

Ben Gerlinger

Hey, good morning everyone.

Alberto Paracchini

Ben. morning, Good

Ben Gerlinger

loan growth we to if about a curious and general. hear could in take I’m talk minute Yes,

guidance for outlook. to your the basically kind achieved digits, seeing growth half think of just people you’re I from of you annual I’m loan maybe here single own keep you in tapering is about clients? anything general there when in you’re a your bit growth said think expectations high of like, their that little to trying going

pretty seeing you in Or dramatically just are we quarters? slow something that So, next conservatism could world? down three potentially is a it live because it the in volatile

Lindsay Corby

so think our very take got payoffs quarter to in Ben, I terms effects, that you think muted of have the Well, first we I into guidance.

bounces quarter ball fantastic yes, it our a with for sometimes the So payoffs muted a quarter. was again, and being way

said, assuming high my at number we remarks, digit be normalized payoffs, I year. think as the So in it’ll for again, that single

Alberto Paracchini

I think think Ben impact that, kind of in of, that know rising yet also I to just to rates. also add the we terms don’t

been in adjust with operating to rates. conducive sense borrowers, it’s been an going the used where potential to we particularly the kind which one is getting short that the as estate as adjustment has rate The probably of is run real our a has just borrowers be environment that a very of see the to think I to low side rate. year extremely at, very over there’s higher here folks course environment on more

adjust. than a was also what So, payoff quarter we’re And don’t really we of it’s too the activity. expectation. utilization. line in of in We expected. a had form we the lower just benefiting activity said, just, don’t remember market And customer phenomenal from We terms It that. view I have think as have will on Lindsay of, any good sense we our

to percentage in growth. certainly loan helps every it line pertains point So as increase utilization

levels the utilization at that we at were COVID. yet to line not of prior are We

the and five four over up at been that contributed has here certainly nicely growth we’ve the to seeing We’re points that trending been it’s that below quarters. this point last probably

Ben Gerlinger

it. Got

$XX more sort $XX helpful. with that I that so, And includes had added to of a hires does a normal Okay. to expense business with mean, or, include or hires members market, does then other is better deals my from Chicago see million of do allow some the million question of and to course cushion of hands that any outsized sense a lot key any changing guidance continuing obviously additional Yes, to Byline? to past disruptions, for team resumes for

Lindsay Corby

a that’s great It Yes, question, does. Ben.

hires and newer some that on are horizon. the include does some, it So

So of and active exchanged. out, you pointed being as there out it is lots resumes

that yes, hires. for So does us give additional some room

Ben Gerlinger

Okay.

Thanks good. guys. Sounds

Alberto Paracchini

Thank you.

Operator

from go Stephens. your Terry from next ahead Our comes please question. Terry, McEvoy question with

Terry McEvoy

morning everyone. Hi, good

I our you call Lindsay, said larger this First rates off, but what comments Very, Have table. Nate and on rates you first incremental Page all you just in market? in all think higher? deposit I change think costs react. agree disclosures. my you the question rates the some they talk will that helpful just guess, was Thank of behind need Have side Maybe to X Maybe your the with. said. would later I’ll you the for expect we market reiterate which had higher very thesis, banks higher from kind the and I expectations and just are about the your just to underlying Byline moved will of adjust at point year, go

Lindsay Corby

Yes. Great question, Terry.

now, time. In at not and and really really the in rate the to with point that right environment lot obviously this a of seeing of are we’re going are price comments adjustments terms My market come. increased things competition on

start that I we think into loan happens. future the ultimately lag remainder into the for think here we’re and of faster that’s seeing you’ll as some to ratios lag pressure. definitely will And the see right where seeing that that deposit now and moving the the deposit we really the going higher, XXXX, think, up. what the to we’re anticipate ratio, we But see deposits I to head near play loan

Terry McEvoy

we given world back any And the just how on do the wondering, of inventory utilization, in temporary in commercial the we then building line or business? a saw C&I serious was increase of call side, how I’m Okay. trying it investments their any, the was making, the levels were you your think of a quarter. sense growth – lending last sustainability I’m just you loan do clients just of get that in, live to

Alberto Paracchini

and cost I you to of lot ultimately mean prices, materials with able have of up inflation think to even, that raw I it’s pass a into a higher customers combination Terry, receivables, being of going units. translates ultimately the same think in higher form number the goods of certainly for the on right, customers environment our of I both finish

are rise of inflation as by in to sense result that So But point there’s it’s activities. higher part of rising bring plays a no also that. a as the that result the customer also receivables question that that, you up, driven inventories second

So, it’s of I think a both. combination

Terry McEvoy

then And trying last that returns Thanks. Could on you as well last bullet just just new expectations, on just team one M&A interpret about pricing bring teams. and on maybe between Slide the today talk just to question. just based the to lift outs? to M&A XX as I’m cost second

Alberto Paracchini

outs that lift a now question are, lift was that we view is in talented think a talented and to platform. the are bankers and it. team for I we anytime asked Team think have are think our of I always have an attract past opportunity serve It’s outs as really to to we home just this have think and a the going great just, clients. we bankers We take organization, we advantage is great to

I theory answer one other. that always not that the in that’s to And would of we so versus something the lieu pursue necessarily think is

that, that in for always we’ve us shareholders. lift we for our past and is organic growth translated the been out to want So able well prove something, drive has to and team that

Terry McEvoy

Great. Thank you both.

Alberto Paracchini

Thank you, Terry.

Operator

ahead. go question from with KBW. next Our is DelMonte Damon, Damon

Damon DelMonte

the everyone. on quarter my Thanks taking way. a for question. Congrats great morning good Hey, by

about and outlook kind credit should thoughts of get provision to of wanted net on how the forward Just be on going your charge-offs. and kind for we expectations thinking

hoping a you color Lindsay could So provide on little that.

Lindsay Corby

the we vigilant. Sure. Damon outlook, of remain and in terms

charge-offs you And see great can during drastically quarter. saw down quarter. quality this our the really numbers we So, here credit as by went

right now great. So is credit the environment

remarks, will in prepared As this forever. said, we something think stay our that that we don’t is

but that going near out a provisioning future. that portfolio so loan any we’re to at the look And on looking vigilant be and out continue of, the stress. I signs that in think the the at going remain pointed we something top Damon’s do his growth remarks, and for forward, looking And we here function that’s term. to Alberto in into of we’re of Damon,

need that And So continue to and for as provide grow, that. weakness to we’re sure we’ll of asset any signs in keep well an eye we we covered quality there. make on then

go can think at I of they continue are do you here to and point go that, look to averages. I to And terms we do those in we’ll going back think historically charge-offs, some grow. historical forward provision So, as then back

so a whole outlook anticipate obviously don’t forever. lot great, but didn’t now we’re, and And lasting the that right quarter credit see we is this

Damon DelMonte

a, Great. then That’s here. a forward? great it. going effective and Got color. Thank just rate kind of tax your technical projected question What’s

Lindsay Corby

XX% do was It XX% question. back down the to to go we we’ve Great range this quarter, it’ll so think up as guided historically.

Damon DelMonte

Perfect.

lot. Every Okay, great. a Appreciate so else has been answered, thanks asked and it.

Alberto Paracchini

you. Thank Great.

Operator

Janney. next Brian, from Martin open. your comes line Brian from is Our question Instructions] [Operator

Brian Martin

morning guys. more good Hi,

Lindsay Corby

morning, Good Brian.

Brian Martin

Lindsay expect the that more loan the but like in the sounds Can you be the where potentially production the what – on up do over are here maybe any, front. comment based pipeline quarter. your, great optimism side strong even there’s it is, about today sounds like, understand sounds give just, And a just growth little the today. the follow though, on the it like loan a all pipelines maybe granularity Yes, quarter one and this one, on just, on loan bit the outlook. the the growth to still just really where next couple lot pipeline just about payoffs in showing what on optimistic the you still, I the quarters growth coming, obviously

Alberto Paracchini

the whole are good. that Very on think pipelines I the Brian, good. Yes, I think

color some to In you terms just of, mean, strong. maybe give what areas, I commercial and remains

very SBA think government I our pipeline strong. remains pipeline guaranteed

that. that’s, relative real whole has business quarter, estate grapple the has through seeing Probably strong, terms. projects very will to you’re nicely. relative a projects. leasing material I not where estate I weakness expect there adjustment, much think also some I rates, market And but think the with I Our would, very real interest think one probably other. costs this higher as have pipeline good the a higher in but that’s to is adjusting going terms The for pipeline remains are market shown grew I to adjust, in is And an ultimately only think relative sponsors

gives color. hopefully some So you that

Brian Martin

you Alberto. just just you sensitivity Yes, comments like you I deposit you’re the it certainly factor about maybe your the road, appreciate impact no as the get that’s for the any about Lindsay, gave not the kind increases? rate betas at Can as sounds betas you one a the thinking guidance are thinking further the for but sense just just guys far all, as the near the give helpful. of and deposit on how of much how term, it’s that about. little And down

Lindsay Corby

those could in I and the creep think the earlier remarks to Yes. deposit term, they’ll up, provide currently out betas time, lag. you’re we in But kind a still functional think timeframe, to ratios and but as of near we of do back slower little lagging a just see question given that it’s looking at history Historically think what were between any I depending XX% XX% they’re terms Brian, it’ll over in be did liquidity we I look speed call on we to up. think my it that’s an this there. then I loan that

play a see what it’ll So it’s right slower. happens, we’ll do Brian, think so but be at little we those factors all now

Brian Martin

it. Got

a grows guess I that still the how the up, they’ve given mean, deposit expectation with some you deposit expect that is here? been, is And sheet balance perspectively? slowing Or the rates side on going and from do I your Okay. strong flows

Lindsay Corby

and We great growth. we’re mean, grow always I deposits. a Now, looking quarter had great to showed

continue and self-funding to And is whenever the possible. deposits now goal growing so

Brian Martin

Right. brought organic your Maybe growth, you’re in much I some up. you mute didn’t know get. that expecting of the just if way growth typically

Lindsay Corby

you’re ebbs larger that I foresee way especially Yes, going customers, some some mean, always have or to it swing I that’ll another. and with flows, but one commercial nothing

Brian Martin

Yes.

your this certainly comments just a there has, Has in forward, have earlier, all it down? on the a And some, it. question going appreciate on that one one, in I M&A model from standpoint? I dialogue slowed last Okay. just has seen M&A you slow environment you itself. but would I understand, it, call your, think dialogue the just the the say

Alberto Paracchini

early good. good terms very I prices have in are where lot things adjusting all Again, financials of in say to of not sure has just, to once It’s quarter just think in whole It’s a this where impacting of is just environment we case have to that stock of dialogue but year, general for and all the expectations materially, we it’s is the any transpired. a seem I think the at then impacting think the as a for least is think the change M&A and the things I market different. things that were in M&A business. the I – Dialogue from enough, Brian, we January and the changed outlook

Brian Martin

Yes.

thank Perfect. questions Okay. guys. and Well, the for you taking nice quarter

Alberto Paracchini

Thank you, Brian.

Operator

are have Those we the all today. questions for

So, I’ll now Alberto turn conclude. to back to the call

Alberto Paracchini

Thank Emily. you,

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

Operator

everyone you today. joining concludes our us Thank This call. for

lines. disconnect now your may You

Byline Bancorp (BY) 29 Apr 222022 Q1 Earnings call transcript