- Earnings call transcript Q3 2022

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Operator

Good morning and welcome to the Byline Bancorp's Third Quarter 2022 Earnings Call. My name is Amber and I will be your conference operator today. [Operator Instructions] Please note the conference call is being recorded. At this time, I would like to introduce Brooks Rennie, Head of Investor Relations for Byline Bancorp to begin the conference call.

Brooks Rennie

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

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

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

Alberto Paracchini

Brooks on everyone the good and morning call. Thanks, to

and this Officer, Roberto me Mark Chairman Chief Treasurer CEO, and our morning and Fucinato. Herencia; our Credit Tom Bell; Joining CFO our

call growth, to strong Welcome, on get delivered earnings, and stable strong I'd we leverage, here, seen now, first quality. of you've of higher by the Tom asset X operating quarter, by loan Tom. we Slide another CFO like solid going his to earnings Starting Before with highlights highlighted as Byline. welcome positive financial profitability deck, as

results on our hard favorably earned commercial or which of our the net we per $X.XX diluted last continue to employees. the generated focus strength show $X.XX compared model, quarter, of the the of million to diversified we work income quarter. These For share, $XX.X

at XX.X%. on X.XX%, a pre-tax points in of growth while Total income came Return preparation and from increased at last of by revenue margin X.XX%. boosted preparation Our coupled across $XX of quarter. return X% million, by in our board quarter-over-quarter X.X% continued million, loan in rates pre-tax was continue book solid $XX.X basis ROA assets up to combination up points income and X interest again up our higher to with ROTCE Commercial solid net XX% the came X.XX%, be quarter-over-quarter. metrics The basis XX with

million, benefit for continue positioned positive ratio efficiency lower the We were $X incentive quarter. as was leverage due were to income origination remained down at volume up managed million, we costs. the rate lower Non-interest flat essentially sale on from lower accruals quarter, higher operating $X.X remain primarily compensation by $XX to XX%. and quarter and the last well income additional to for was stemming increases. from was expenses by from loans sold million Expenses driven deferred achieved gain of decline loan which well Notwithstanding our

Moving onto the balance sheet.

loan saw or consecutive loans growth was both billion quarter $XXX Loans in and of This and deposits. third quarter growth The the $X.X at and consistent and of relatively remained line X% million coming our at sales, Payoff from we primarily leasing stable Net in with quarter. XX.X%. C&I in utilization originated this our increased guidance by annualized as end. sixth solid stood last expected, as activity of quarter increased $XXX quarter million businesses. loans

in in XA of U.S. as the prior in market quarter. lender leader loans, We this Our and fifth closed business the had government's year-end fiscal September remain XX, production a up from $XXX government-guaranteed the business largest XX% million we lending with on strong are the

expect growth costs on Deposit with track the coming will with of basis, accounts. below that operating other increases detail Moving by rates of for up this market some of XX% interest-bearing side. we will interest-bearing solid, the to The cycle deposits with but the will at money total additional to costs. end, stood accounts. expectations. Tom Total this continue of for cycle continued from our XX% that in this deposits. remained are quarter points to continue mix expect a the position, XX benefit on the deposit $X.X for primarily loan quarter betas point increased and on to and And guidance deposit we loan impact our target despite your in the level rate. with exceed liability asset-sensitive in change basis obviously absolute added as deck. rate Deposit quarter we're level. billion higher representing linked the line the currently Page deposit At shortly, Fed We basis previous DDAs we points X given XX of and XX% yields about on betas cover

previous Asset quarter. to at with in basis coming quarter quality remained and NPAs stable the XX than loans basically lower which nonperforming charge-offs flat and was X points last basis points,

portfolio increased in uncertainty in outlook. the growth the reserves and growth consistent with in Our the

outlook have proactively While stable, our we of portfolio segments, different vigilant weakness communicating borrowing recession and portfolio. we of reviews remain increases have in conducting impact coupled continue the cognizant targeted costs portfolio the in our customers and To much uncertainty that but on found environment. the past get can perspective given of rapid on end, that are we'll going with remained metrics closely to terms a current forward. to we To dues monitoring are performance street-level not the with and date,

executing is quarter look of like of levels business strong XX% capital more our over our results. provide remained to end, to stock, We strategy, quarter to we with with the to while per X%.This to quarterly XXX,XXX on of X% continue capital, capital with XX.X%, AOCI of TCE details to shares and approximately capital on ratio invest you with the repurchase value in of past total which shareholders. call With I'd who TCE return with that, the as inclusive our of shareholders on Tom, franchise, of opportunities common $X.XX the to our ratio range turn our will CETX consistent along dividend share. a Moving remain and for targeted focused grow X.XX% of of delivering to

Tom Bell

Thank $XXX lease at our guidance were came were you, some on loan will is I X. on and quarter. the expected our compared year-to-date quarter. portfolio September leases the elevated billion the Furthermore, in unchanged. $XXX the Payoffs second and Slide on morning, we our million Of million full $X.X everyone. outlook in $Xbillion. growth good originations surpassed quarter XX, third as an and to loans and loan lease in end for at year start with Alberto from note, prior additional and Total of information increase the

fourth believe For mid-single growth lease the the loan digits. quarter, we and in will be

the on X, Turning of million being guaranteed end down exposure USDA prior $XX by on-balance lending SBA we is of The was million from our $XX $XXX At million was the September sheet quarter, business. government-guaranteed to million SBA. Slide XX, Xa with which $X of the from the balance guaranteed. exposure look the million, prior $XXX at million quarter sheet $X

We loan continue percentage this in of to our as at see stable remains result, credit unguaranteed a X.X%. allowance portfolio, balances trends a as

interest-bearing We the XX that the are third XX% prior deposits XX% quarter. annualized and approximately accounts. total X, our or We increased betas the anticipated gave the in million guidance disciplined deposits $XXX of interest-bearing coming market points end from deposit Slide of cost money that in by pricing cycle. remain checking our Currently, operating from last quarter we basis quarter. on we We of to saw below full deposit growth at with total over Turning level.

and deposit Our core continues composition strength ability deposits franchise. a to our to be generate of

of income income Earning net healthy margin basis of XX%, lease contributed increase basis This NIM quarter. of on growth, assets X.XX% loan basis on year-over-year basis last a a to record of the quarter. on Net well-managed points cost a higher interest which our strong deposits and X.X%. higher our interest of expected as yield from yields points, net impact we XX basis, Turning QX, a and acquired the million, XX points net loan $XX of interest from interest The performed expansion rates loans interest to interest combination borrowings. organic from to increase is funds. GAAP margin driven X XX loan and quarterly the increased expansion margin more the than On and increased by as was expense X, driven and Slide basis to to basis Accretion was higher growth. points a quarter. our due point an increased XX% prior of primarily prior rates, income primarily offset in NIM by X an by a the driven

the top quartile in banks remains margin our Our size. for

interest net result interest net in environment, XX is as and million the our Furthermore, expand on believe fourth of profile net a reiterate the would to margin for we result basis approximately increase Looking rate organic which income additional asset rates unchanged, basis. will rising million quarter. an $X income interest our to of forward, guidance $X in annualized to growth, sensitive continue every the in point

premiums. is that from next sale were fully holding an income second as stabilize, the were sales the results. non-interest these this the lower all We We due X. level net of government-guaranteed quarter. funded, will and prior available was by to interest for loans QX a quarter that $XX.X for Non-interest increase QX, the funded third income. loans not to Turning premium quarter, loan and consistent during on available net volumes pipeline anticipate believe average lower Slide in said, the net will We driven we will result, million We at sale. they lower net when compared the future our quarter decreased benefit to gain and X.X% approximately lower income compared sale, forecasted in be fully originated QX. to from expected. the that of during SBA million premiums sold with to loans be than not in primarily The additional average albeit government-guaranteed saw loans $XXX second lower quarter period, as a for on With

trends to Turning expense X. on non-interest Slide

in an was prior the quarter, third quarter. to factors. The from expense non-interest increase two was X% increase Our the of attributable $XX.X primarily million

along minimum an FDIC saw an decrease The increase to incentive due of marketing we and and deferred our higher salary costs related we production wage other saw the First, to in increased lower second, to increasing mainly to higher million of paid. due hour. and insurance. increase accruals non-interest compensations employee an $XX in rate And of costs with expense $X.X benefits,

expense We are expense a continue offset opportunities for gain result to management to as efficiencies pressures of inflation. and focused on look to

and between Going non-interest rate $XX we million. quarterly $XX million trend run expense believe forward, will our

our to reflecting to culture. portfolio Turning and remain quality disciplined diverse Slide XX, credit stable, asset continues

were charge-offs delinquencies. Our million basis $X were third points, Net stood delinquencies XX from on or commercial XX% non-performing at a assets prior to the total million reflecting total lower decline million and $X.X September assets in flat loan XX, the $XX quarter. linked-quarter, quarter

Our quarter growth, points the million to primarily uncertainty million represents conventional from the $XX.X due at impaired of environment build increase lease loan end and and allowance basis specific of Reserve total loans. to loans. XXX $XX.X reserves June a was third in and higher on

model accounting As are be still our under loss on will and we CECL a adopting we reserve for XX, XXXX. reminder, the December incurred

to We capital and position. our Slide Turning strong XX. display liquidity

months of approximately solid available stock liquidity both through positions a billion repurchase strategic our you. stockholders of dividend, of XX% advantage liquidity. and share sheet nine We robust back to opportunities. Through first well us common $X our that, to have returned earnings program. the Alberto, and and we to With of on for believe levels organic year, foundation our the capital take the We balance

Alberto Paracchini

you, And Thank Slide moving XX. Tom. on to

continue and consistent. to our want forward, maintaining while credit remains strategy our discipline. So to going We business grow pricing

market. our in in were the continue we and the and that attention and level to quarter take capital business our with credit want pleased position both arise, In respect of pay advantage talent invest for M&A. performance we the in with the to the closing, in the Given uncertainty on to order particular of and front opportunities environment, to to

healthy strong year. position, of look end pipelines Our in a the to the and as we're remain we

want customers, the employees quarter third our and I up for always, shareholders. deliver communities let's work As for to for and their the With call for thank questions. all that hard they our in to open Amber, do

Operator

comes question McEvoy Terry is with Terry, line now open. first Our Instructions] your Stephens. [Operator from

Terry McEvoy

do and I I And you can the then seasonal million reported driving said fourth $XX million. about in opportunities just of right What's How you quarter how maybe as guess automation Tom, outlook? about $XX remains kind on you much to that have You quarter you expense control investing as And the Slide estate I of growth? to XX issue? $XX kind here it maybe inflation? last know, digital talk is think much a capabilities million XXXX, and on real then think of priority and more branch well. a side

Tom Bell

Terry. Yes. Thanks,

Our on higher mentioned I expenses FDIC guidance as have, to going comments, by related compensation. costs regulatory we assessments are are driven higher in then And forward. my

things obviously some compensation. larger causing are a other there. that But related So incentive bank additional is expense to

as to definitely to As optimization but I end we'll we're look mean, in to it savings, a branch we've think know there, slower. the that. for look we're be you much way come managing towards at continue pace I and relates we'll continue that, but that of will long the prudent and opportunities,

Alberto Paracchini

that little the quarter compensation. We're accruals sense We for Terry, a of in quarter. just had have add to bit incentive to our to an you quarter, it clearly to some this here some Yes. to and do of the Tom minimum in that saw instituted we boost fourth wage. expecting the in for said, so what increase

So is quarter. third the that went wage part in the now latter minimum into of $XX, effect our

the Obviously, see in we'll bit higher environment. inflationary effect in we're a the operating fourth So of quarter. that

So guidance also we grow. we to be to give want just and cautious as out continue we're

So in that. we're investing

as a $XX consistent think from pretty with we of $XX them at year. I the would of over of guidance kind part year, of factors thing it's to million fair, kind into to think all this and payroll subside think is, we every these to respect latter components kind give with view, is out quarter that this taking incorporating million of the the quarter I I guidance that I So tax to we One point that the range. think account perspective, need be I first usually high, say first highlight essentially you the of of the traditional have because look

happen again. So that's going to

that want guidance into we view be, to to point. XXXX sure that's make just we that So give at this consistent you

Terry McEvoy

thinking portfolio, performance go then that Appreciate in maybe question have as a you are the higher of about that. rate And the those rate. Thank as the rising environment how tested roll a as you rates portfolio portfolio into higher. CRE same a follow-up, the And these SBA loans credit you. stress

Alberto Paracchini

take that you one? do Mark, to Sure. want

Mark Fucinato

SBA still is book stable. The pretty

of hanging our far kind management maybe I from borrowers, it obviously And to customers a see direction there. be the in, there. consistent. that rates can You as portfolio different the in moving, very statistics expect are is kick thorough in and these so but the

real retail. like again, On of don't be shape a with areas hotel very exposure of perspective, estate good from credit commercial real estate real really the issues. the front, might lot a have some or concerned We in estate our folks office you few or even of are in

but in here fourth our far very quarter, so So holding again nicely normal it's and the target on, our as part of an situation those positive. area areas is we is outlook together portfolio our in we're focused reviews everything

Alberto Paracchini

could the the and more one origination real we standpoint. where if an there it's portfolio, just look this at where quarter, but I estate, mentioned you add, existing one I Mark just think when saw you and originations. are comment area seeing you past from bit little One a covered area Terry,

And slowdown slowing of rate-sensitive with one simply rates down, a people pertains and cap is adjustment. in it the originations time having in equity The higher, penciling particularly through transactions. probably the is new far just I think those, terms are the with book, projects. sectors of think real time perhaps estate component, as I higher to going particularly intended having think that as I terms definitely new and market expectations higher seeing is having Fed rates, hard harder of because that with as moving there, a effect the moving people a we're part in the an of are

Operator

question Nathan Piper next your is line now open. Nathan, Our Race from line comes of with Sandler. the

Nathan Race

sheet, about the loan Is have loans over of growth obviously on versus just to that some to that drive keep Are hires be share market discussed lot from Just going the deposits growth kind point last just deposit about runway deposit of deposit of of a perspective maybe see years, ratio you guys a thinking made thinking it's the last pricing back guys balance forward. deposit commensurate range comfortable needing the going to of price kind forward, it forward? as growth for leaders and core core several to kind to a a be going deposit you you somewhat come outlook nice function guys quarter. going

Alberto Paracchini

Yes, Nate.

question threw at us. you a that So there complex

kind So and go let's just just one. of unpack it one by

the comes banking So it of relationship. full it's kind traditional when to commercial business,

bankers to that answer in to and loans opportunities to the we want your yes, to to maybe question prospect focus see deposits. had and that relationships So grow is both additional continue for on our bringing past, continuing they've

the been answer the your kind we So said, lot had necessarily space, this ratios you is seen in being and the second having one last institutions is, drained that having that deposit I leaders, To think liquidity, quarter, that will that seemed excess price of about don't absolute think question a to lot to loan guys on system. yes. to become short I a in leader be price have flexibility of quarter have this from liquidity of the has

higher. speaking deposit loan moved broadly seeing ratio to you're think I has So

definitely competitive this very active as now active were quarter prior noticed that the necessarily we've are not very quarter. far environment here, institutions As an uptick,

on and the that, Fed this increase the you to just and that's prepared expect goes where both loans to parcel to we degree deposit think increase and I continues the rates can part So that to to rates, accordingly. comments our remarks, in the are environment degree the

Given the we we to margin in pretty our see at ability where expansion good cycle. feel this about given to position, our continue are point

some that our gives into you hopefully color So thinking here.

Nathan Race

that it basis pace quarter. the was like early margin very pressures we Yes, industry-wide. fourth quarter, to the It PPP exist, going Chicago about is just forward in If And just the the strip maybe given context slow, about terms from points within up the of pricing out accretion deposit in going versus that the in looks of last year. XX that sounds like couple quarters, helpful. next and margin particularly and fees second thinking the

in future Tom, funds into approaching thoughts, in current or the million $XXX just next so. expansion of the terms of maybe, path, Fed the with any year So kind XQ assuming as of pace on and well, its Fed remains of first margin half

Tom Bell

goes again would anything for we'll in anything in the then QX get happened Yes. Nate, see the margin and the basis on if are lag, year. it point of happens assets obviously, here Fed QX and SBA what But the have expansion next and happens XX quarter really the thing benefit a what given composition the continue. of expecting XXX have the that depends we'll that of to would next in next here that on then also the anything increase, market's liabilities, sorry, in, that to I remind effective is you with I'm we loans month that QX does think I and December. the QX happened so you in for expect same and in

sheet that definitely just growth. comes And to then balance So, happen. down will it

mid-single-digits, the raise where Alberto it's but it's on, in won't was near to cycle. have is as funding -- think, touched not moving and much in up, go last the nowhere out competition before And to we I it continue then pressure deposits. operate We

Nathan Race

one if more... Okay, sorry. ask And great. I could

Alberto Paracchini

the December, was it's the to go and when ahead, matters, you're November margin in that what if that with lag Tom the something because Fed you we're for Tom rate we're kind potentially the the add getting when here fourth as book, increase And of potentially -- going said, increase to of up catch obviously about so year. think because just that -- moves first another in next -- rate do positioned in, said, quarter. as in thinking the further of see rates so expanding, one a you, SBA in factor you'll here Nate. that we quarter as Yes, I

we're margin So, of quarters. pretty we to well couple the expand here see next over positioned think the

Nathan Race

palatable one, are yet in Okay, sale quarter, between thinking on just just SBA to look the long Is relates you as of methodology a very nicely going these the opted manage you commitments gain that the selling up these approach second about the in sell to great, just kind forward days? forward? product to does And versus of premiums helpful. below as of project loans market. kind level going as or retention less being Maybe function that -- remain guys premiums one near and how guys framework secondary you that like levels, growth want secondary last market your it

Alberto Paracchini

Good question.

couple things And a so, of there.

think I play. at of couple a there's things

one, spot decision buy versus you're the on the as the with sell for you hold versus economics. So -- first is know, us

So we did not more to whether past was so this a role or quarter, play or sell factor. certainly that economics a less decided in

of or it the it of in net down higher revenue the some other that our franchise, fact interest Obviously, some fees and factor was this component want sale going Another revenues from that to our see is nice flexibility. time, come on is we we over growth have sources, thing come gain of income. that this the We -- of to saw quarter. be be

in sell think fair of we decisions or pricing amount a hold. buy make loans is of hold the the economic increases thing last purely And in run because the short lag. the on role the had of really versus rate do here of So it as to a play versus flexibility

or that we're we to get differently. to arbitrarily executing execution or absolutely would put possible on we're can loans, those so, want we three rates the looking sell sell as the best execution, because, could this wanted when loans we we because month loans. just better to to to opposed months, get repricing two So reflect them the that We don't months in sell make and sure want

do So loans all would thing, in some with These funded. a of where not XXX% are I construction amount loans loans we cases, fair of that and are say, the construction then loans equipment. the last fully

I effects seeing our just of book cases are of think in this you're the taking what quarter, in past is conventional are we some deliveries longer. which of equipment longer, saw projects some taking

that the nice fund on the carry-on did fact So earning simply we're thing loan fully that basically is means the the not the portfolio.

So all in all, I our on that think, Nate, best that's take probably going forward.

Nathan Race

It versus helpful. going the could expected the event sell just guys if just sneak I Understood. context that maybe production Terry's on days one and In last within that maybe you to last your continue these tightening very And along are is lines? those SBA one, to you SBA question. more back on any front or portfolio SBA underwriting guys boxes adjustments secondary notable market, in the

Alberto Paracchini

going within you going expect, are more be industries country current cautious certain being those on economic you would we're at that again to think the forces and the to the what's are here. that about work sensitive I in environment

being we're in place would more practices at time the we've consistent we're some time, But the I for cautious, So again had being underwriting say. same to

Operator

Our now Raymond line of David your the Long James. question open. next line from is comes David, with

David Long

finally, your with And out yield or expectations wanted I what duration? the the securities current a to portfolio points was the What everyone. Thanks. Good then are morning, portfolio. basis how Yield much up that investment closer a is portfolio quarter? securities month of each look at quarter-to-quarter. is flowing cash and few take

Tom Bell

And all bottom are run to the support Tom. Hi, X.X to The to million in roughly estimated and flows is million range. cash duration flows $XX cash Yes. currently, it's been month David, line the years growth. down loan $XX letting a we've that the

David Long

Thank loan then as even appetite and pricing thinking Thank to a for higher Got Does up. growth deposit land change that about your loans? keeping your you. not the it. follow-up, lending, growth and just appetite change or And you. just is

Alberto Paracchini

being Dave, still this credit sorry, see given have. -- think outlook in discipline and continuing paramount, the I opportunities. good is that to we're That Pricing and pricing really we broad environment said,

Our pipelines are healthy.

I the loan in that this it's, other had the good growth analysts in quarters, we think, the rate guidance. for the kind number portfolio been is several that's we've call a call, past number. your formally us, covering providing I to know we've finally think still and down I all that I think but on run of the a mid-single-digit got first

I it's think and kind of in opposed end to that. the the remain we of probably to with the as that comfortable mid-single-digit and range high, upper range mid

I accordingly. our multiple solid ways and in process philosophy we which think of approach, loan part balanced the see a want strategy we multiple and what it's strategies fund and to to obviously and continue to to can we -- part continue deposits quarter our is bank having with sustain meaning, want the to portfolio growth as of we do continue grow to

we this to right. If it's know want do obviously, basis. we a a perfect, loan of previous on would to want saw the the mean bulk to-deposit We point, could outflows but the downtick perfectly, range this we are. have a long-term quarter and managing terms kind the XX% we're that in continue we to time pretty also deposit quarter. to from not inflows So but kind at Company, took where I little to standpoint, target loan- and from managing you comfortable that the kind of philosophically, that, of see of we the ratio

color some gives the question. and you answers that hopefully So

Nathan Race

and for thanks it, Tom, appreciate color. Alberto do the I no, both Definitely,

Alberto Paracchini

bet. You

Operator

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

Brian Martin

to do far our rate increases, the asked and that deposit about expect earlier, Fed as look catch just out pause Is kind and world that today I Alberto, your just today? next How bit. Tom, I the margin should but the as if I follow-up one just then? Is a get around to think was as occurs? betas the quarters, the circle up back, as you continue does color our behave, for the of bit compress the do to the to level? a and wanted there appreciate we your couple XX% on how margin the guess to margin that guess, if of get pause far beyond we expected when

Alberto Paracchini

next the I it Brian, probably dependent, Fed December be year, what think peak the if if so obviously that's before of some a is point, us first Fed-dependent. point what to for in margin here what's Fed We'll at fair the I deciding see obviously assessment pauses to some fourth, and stops at again they the describing raise the to into and it's quarter view. probably continue and right think do make you're going dependent. some Fed about think to next but will way or

to, quarter it's on you're lags So or economy But an on a about from I costs probably to kind think in to -- mentioned, second is what I is at saying we outlook then but the changes. we'll effect don't where where rates and the are outlook that the with we'll think that happen, of we some is is think then hold way point and it. where Fed what be there given going want you of see is fair at And kind see of the that. the probably pause

Brian Martin

you. Got

level there a of what's I next guess, growth to look and you side. I core Okay. maybe I just more deposit the you're there of how just and guess and rates franchises level XX% as side this you portfolio expect helpful that the very the beginning as given happened on in strong, over do like a you we kind bit but you're of expecting. is come of how little with dropdown you just -- out do obviously and I level big... mean a No, I deposit what's quarter the is Is very saying on the that's quarters, much migration think stabilize, kind non-interest the of much in of bearing one, this side? the think and the couple growth DDA XX% normalized a about you're strong quarter. kind the saw mean, the or to expecting, migration, if goal talk

Alberto Paracchini

but realize we We with if could earlier, always growth everything demand doing necessarily we're doing look, match it can we deposit measured then that. a control ensuring -- which do way it perfectly, with comment my we to -- don't optimize patient we be prudently. to that very to we're if are that, trying we realize we'd in loan we're that perfectly, match that We want in

are So really to very the rates levels strong, necessarily, opposed next to is going we get nice mean, going to as do be need liquidity, having to not capital so a very, quarter, thing ample high. our drive we're to want this there measured really, have I approach to we so really is we that.

necessarily -- So but to month by we the will target we next will a a it's achieve reach, end of we target want quarter. that it's not that the or

Brian Martin

wasn't that I Got you're you. got No, just expecting I saying so.

this the I this may the pretty but guess, slow beginning look just borrowers, at I the indicative Is your or more quarter? are, on about. origination know just little other Okay. they last origination payoffs with side you be environment. me quarter? previous were a they rates was, and given just is they cautiousness payoffs just on quarters, The bit the to at a quarter, outlook normal see guys were level you a this talked on that strong for quarter where And lower as pipeline maybe And beyond of fourth loan the was a your any then bit payoffs. very the visibility just as than you sense just side one the of rate low, had this been mean, today? that little up just I the it, beyond

Alberto Paracchini

Brian. pretty The remain healthy, pipelines

payoffs, with that. respect expecting were the to I we think

well quarters, you prior much was as in activity know, payoff expected. we lower than think I

timing, was a etcetera, pushed that in it of on some of got quarter, following Some and transactions were over saw into the third the that think quarter. here happen to we I date, particular

is it's think give where view I payoff the so that on a best what up, point concerned far kind sense we a probably a our as down good take kind be. expecting were our of of mid-single-digit going don't and but of is for but of slow we're you is at this million and holiday we activity Obviously asking some terms season do have coming in to stand pretty as for kind loan things color, of kind is translate bit, payoffs in guidance, range the a it $XXX into as still today. probably range kind in are things should growth of low

Brian Martin

Yes. No, I appreciate the color, Alberto. Tough question.

thank appreciate the I questions. So, taking you guys for it.

Alberto Paracchini

Anytime.

Operator

to remarks. back for all I over will questions any the today. closing for Alberto Paracchini Mr. now you your Thank call turn

Alberto Paracchini

Great. Thank Amber. you,

this concludes time all that interest our behalf On here, for you of So your and today your Byline. in thank of us morning. call

you season and wish and to speaking to want again the forward you New happy to Year. look Thank a also you. in safe We holiday

Operator

quarter third now Byline participation, call. may your your disconnect Thank you This you earnings concludes conference the line. XXXX for Corp

Byline Bancorp (BY) 28 Oct 222022 Q3 Earnings call transcript