Earnings call transcript Q4 2022

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Operator

Good morning and welcome to the Byline Bancorp's Fourth Quarter 2022 Earnings Call. My name is Forem 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, Forem. thank Fourth joining XXXX Quarter and the today Earnings everyone Bancorp Byline and morning, you us for for Call. Good Full Year recorded webcast with is earnings website release accordance Regulation corresponding this our is In presentation the slides. FD, along with available our on being via and Investor Relations call and

subject the projections that the materially are remind statements regarding uncertainties forward-looking risk other to like statements discussed. statements future would discussed other performance that certain caution made events certain to or and or actual Company's and forward risks, cause could in Company. on results factors filings. Management its everyone factors The from that today's such are disclosed financial of call to We SEC involve future differ those

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

For release. as refer forward-looking the new standard. the financial quarter. prior a result A presented Appendix recast the the also credit applied to statements standard the in please the information measures while adoption had as standard have during periods release company disclosures XXXX. additional XXXX and to of new if prior earnings earnings see new the as been Please standard, loss January and been financial under quarters Results previously XX, about note of in recast the reported quarter current for since the X, for are non-GAAP the refer adopted expected after information fourth reporting beginning CECL Please uncertainties, risks September

conference to Paracchini, With turn to Bancorp. Byline call I Alberto that, like over now of President the

Alberto Paracchini

you thank call Thank yearend review results. quarter joining And the Brooks. Good morning, to our everyone. fourth for and you,

presentation disclaimer find the be that referencing to refer we at our front. website, can please will the You on

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

you walk call full I'll to provide quarter with results. the usual, the the our will Tom, pass you and on who through more for over highlights detail and As year then

come Inland provide and remarks up some comments for I'll Bancorp opening that back and the with before some merger our Following questions. closing with call

since consistent on the shareholders. Starting been exception focus page people This financial has year grow XXXX, commercial public results. efficiency our in past in investing delivered on be to our X our of results executing of the we for a to deck, as summer strong and company becoming strategy, technology and quarter produce centered and improving and customers no banking our proved

For board net loan diversified share income strong the per our remained year, deposit revenue and solid reported Profitability while $X.XX $XX $XXX.X. consistently million of across on of the throughout delivered model growth we or year. the

position shareholders allowed which buybacks. capital in us $XX.X form to strong return million remains and dividends in Our the of X capital

provide adoption impact had added that Tom in CECL. quarter, give deck XX We to and additional you cover allowance. the the Turning on points, basis $XX.X disclosure ROA ROTCE points on share, fourth the prior was more we moment. adoption this up pre-provision with will of the income pre-provision with of quarter. XX.X% on million, and significant of related or for of ROA million to X, X% the one quarter XXX to from strong slide the translated detail $X.XX quarter-over-quarter, pretax per pretax remained of was $X.XX slides But which allocation an net you results basis XXX strong which up to This the $XX.X item XX a financial of the income of

This assets X% up of a income quarter was flat million, total was quarter to income, by Loans net saw by a $XXX Moving income. by reflective $XXX and softer which company which income expanding in XX% interest quarter-over-quarter, up to have along growing and gain loans $X.X was slightly was as the revenue loans we revenue seventh primarily stood record lending to during than growth businesses. million, of which increase across C&I in originations basis solid came from quarter at overall was $XXX annualized in $XX solid Noninterest the sheet of at in for expected both linked with statement, we higher and on driven million, deposits our the perspective, by activity quarter driven interest all growth Notwithstanding, XX% earning an on units. consecutive of as or quarterly a leasing of or increased XX% margin, was loans sold last continued and X.X%. XX sale contributed million the end. From billion strong balance year-over-year. growth Net up the business points quarter. net

with anticipated line had as than production loans, million lending $XXX flat activity guaranteed at and quarter-over-quarter slower quarter. as government solid which, moderated remained third close was off Our business Pay utilization expected the in XX.X%.

retention, saw actively costs. between manage The competitive Moving right our base. the we is key on pressures continue right to and customer. the deposit balance by to doing liabilities, growth, striking Deposit continued, we

from billion system X% Total year or rise rates, million at changes the year-over-year a or For XX.X%, which excellent lower did grew annualized the by preferences considering stood quarter of $XX tightening. full rapid in quarter million a deposits $XXX we end. in job. was %X.X as deposits the in and and good quantitative On customer grew stemming by the and liquidity

points, prior through deposits Regarding are the for deposits total basis to Cycle increase both deposit from quarter. points at at and than basis date expectations. XX of costs, XX% and better interest-bearing betas for XX respectively, came slightly an XX% they in here

expected of should that favorable year, Going given position, sensitive for best in impact to for has forward in the which our we summer, At a of we later asset the in cuts things here us. forward, liabilities. our expect year start the where in cost deposit Offsetting follows and earning go the assets it expected continue the outlook here. repricing from our the exceed If estimate of yields the the backdrop the combine hike change will curve. this rates the juncture is hikes at of the present cycle

On of the expense side, the of management remains focus. an expenses area

ended an Our one a by over remained point That on year-over-year improved the and basis steady percentage year XX%. efficiency of efficiency ratio course about the on quarter said for our at basis. the adjusted flat

remains to quarter changes Asset the both credit with XX. reserve were and very that or charges basis XXX basis points third increased to declining the net December from points. of million the in Overall million for stable measured and quality by XX low $X.X of from charge-offs and MPLs quarter costs for last under our reflect driven quarter macroeconomic allowance $X.X MPAs losses provision the The outlook. as CECL stood million now portfolio loans by and credit growth at or build $XX.X levels

X%. of remain and of Capital to targeted total end, levels ratio X% X.X% our range XX% of a as with TCE capital XX.X%, TCE of strong, CETX quarter consistent of with

to not shares up stock Inland Given quarter, our of our however, company the repurchase million a within Company's repurchase the to authorizes during new the fourth announced Bancorp, approved repurchase we X.XX common did shares stock. of that board program merger outstanding

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

Tom Bell

income average will $XXX everyone. year years. some Slide And over in record has as positive to the which business. highlights good Pretax We full power for our pre-provision the Thank the morning, is you, invest remain year franchise, pre- ended of consistently which company, than record additional Alberto. pre-provision pandemic pretax level. million, with the I X committed net on our earnings net a track to of at start XX% information managing the improved we level higher long leverage even continue the operating over income.

X. slide to Turning

in loan solid During loan lower to new billion were the the at fourth and the million and excluding end prior Payoff XX% December the loans note the originated $X.X for fourth or came leases total on compared million loan we $XXX quarter. $X.X quarter, Of growth we sales third expected from XXXX. as $XXX we billion quarter increased in in were XX and quarter. than of had in

we be to the this in high digits. mid ahead believe will year, loan growth Looking single to

XX, from exposure the from million X, government-guaranteed million our business. slide on SBA. to of $X.X SBA million lending million, end the approximately balance $X quarter, sheet $XX USDA sheet million December on-balance is up of X(a) down with touching the At prior the quarter $XXX The Turning guaranteed. $XXX was which $XX by million, on was prior the guaranteed exposure being

allowance the recap, driven increased the Our loan as to percentage by allowance a credit for to QX to just counter unguaranteed X% of is increase CECL factors balances qualitative economic uncertainty. under to X% compared losses

X% XX% of total annualized represents to billion deposits, stood Turning of at DDA $X.X loan at by end the prior the slide deposit deposits X, core quarter. increasing Noninterest-bearing strength. our demonstrating total

In from the fourth addition, campaigns we quarter we that ran good balance deposit in CD to growth. had sheet support growth

end in We quarter that to commercial expect the outflows also QX. at of the seasonal saw some return we

gathering the points of quarter. our pleased XX costs total for are we Overall, basis deposit the year efforts with our for deposit full managing while

increase expectations. and better Our deposit date deposit in to our than costs betas are

cost on XX%. cycle our deposits is total our current beta date, was to interest-bearing the deposits The XX%. and For beta of approximately

our to continue of and previous We with for XX% trend cycle. rates here expect deposit from higher the guidance track

reported we interest quarter another expansion X, net income of slide sequential both net to and Turning margin. interest of

Accretion a remains increased top higher and the XX% interest the and margin and quarterly funds. we yields XX strong the On by on the XX basis expansion loan net to to points lease income an growth, peer six to income loan With of $XX XX expected XX% offset increase performed rates million, of see record of interest higher year-over-year basis of income up primarily in cost prior rising, rates quarter. The organic banks. impact QX on for points basis rates, growth driven quarter. was other to prior as a than two X.XX%. to prior a higher from basis of GAAP down combination well-managed a to our basis, increased NIM borrowings. net better and Our margin from Earning interest was expansion increase benefit. driven on by margin, increased more points X.XX%, interest net interest and points margin quartile which driven basis net an assets than in Net loan from continue acquired loans expense the of primarily due the deposits and by quarter, points contributed a healthy basis the yields margin

higher expand believe first of half interest short-term assuming net year. forward the the rate, margin in will we Looking the

to higher primarily income on noninterest from $X.X revaluation prior income the the government-guaranteed sales. negative rate XX, X% premium asset quarter, million QX decreased the due lower discount slide government-guaranteed million a noninterest in to servicing Turning $XX to the third in quarter loan We and expense loan on quarter expected. was $XX premiums million net for sold lower quarter. approximately than loans third during fourth compared average due The as to

pipeline consistent be results. fully government-guaranteed with to and forecast loans QX Our funded

We expect QX. premiums in be with consistent gain to on QX sale

Turning slide trends to expense on noninterest XX.

Our attributed was was increase million factors. quarter, noninterest the in The an fourth the increase expense $XX.X to from several prior quarter.

due First, the we deferral mainly originations lower and in during salary, benefits, an saw higher quarter. $X.X a incentive to to compensation costs due increase million and employee salary loan lower

$X.X we improvements. expense, noninterest the Second, increase leasehold saw disposition in of of which other includes million an

related And expenses. costs Third, Bancorp loan related saw lease increase we lastly, we the merger. saw an in to and Inland

guidance remain $XX to last to on continue with $XX consistent maintain our expense of our We management and million million disciplined quarter.

reflect asset and lease diverse remains portfolios. to Overall quality. closer take Byline’s XX, and at a look to Turning solid continues loan quality credit we slide

total points Our in in XX million to to remain million on $XX.X XX increased monitoring on XX, linked the points QX. assets declined delinquencies our Net were nonperforming $X.X quarter, a assets and fourth focused We portfolio. our discipline, $X.X total basis December capital charge-offs quarter. basis inQqX were from million and

at we end for component the to left growth capital allowance the QX XX. close a on page loans of of Basel for were top uncertainty. the Of million on previous under of shows at note, slide was losses of $X.X CECL approach. the portfolio majority which related. for the $XX quarter The chart compared regulatory CECL million driven million, by economic year. for to the three-year built The the the ACL $XX.X the Provision increased was credit allocation and elected apply credit losses Turning

slide XX, our QX X.XX% Turning under flat on coverage CECL ratio to compared when to in loans was QX.

overall the cycle with sheets. compared credit disciplined our allowance to Our balance underpins our strength through approach of the

which recaps XX, slide our strong Turning capital to liquidity position.

For up profile. quarter, to risk our ratios capital the remain were and given stable fourth slightly appropriate

stockholders to of drive our common XXXX. to earnings for deliver XX% and We stock repurchase returned our approximately the on continue dividend program to shareholder value. share We plan through

you. With Alberto, to back that,

Alberto Paracchini

Thanks Tom.

Turning spend carries over outlook start good the talking to a strongly and of year. slide coming XX. and I strategic our year. about priorities minutes momentum the XXXX want We the at few for to ended

Our priorities remain and strategy consistent and time. are over

cautiously we're about ahead, Looking optimistic XXXX.

potential for cognizant vigilant weaknesses albeit and franchise, to activities that to in underwriting we're the and add recession experienced expect That to current economy not talent expect merger at remain complete the grow rate in We Inland. growth we the XXXX identify if continue, a our additional any and credit worse. loan said sentiment portfolio organically reflects concerns therefore banking about and the with turns the early credit monitoring

our this $X the with pending forward gives merger making the further We're to the executing have the filing overlap attractive little metro value potential regulatory franchise. the been progress opportunities. the to to and Chicago our excellent S-X approximately It connection moving gives to will in coverage. playbook. as we we're Inland, area be also the and with short have in us merger improve excited order. Inland merger with billion All our attractive markets brings in begun four integration in about no the of deposits applications us and opportunities market as With enhance access respect submitted synergy that core well and

top and occur the to and for completing second a for a customers closing integration. the ensuring And quarter during is transition the this smooth priority expect year. colleagues We

enter Inland be thank Byline forward questions. strong serving We soon our position I'd hard that we shout closing, of delivering like as for past another those let's out for call work, and huge results. remain dedication employees employees to customers With open and the year. and to In and a give Forem, look to well this well year to their XXXX to commitment up as as

Operator

Instructions] [Operator

Group. Our the Hovde of line first question comes today with from Gerlinger Ben

Ben Gerlinger

guidance be as your expectations. Obviously, to guys you operationally, months have growth next a growth more I going for take the approach. Good continued or When you know don't a loan think that morning. you the in exceeding think, the slower little margin measured six had loan you gave, guy is expansion you said I I so. own know bit

again, how brakes you Are a guys that we curious if NII, margin growth? you just deposits. you willing NII So grow are manage assuming to were or need to the do the tap how at for that, that you am go-to-market do to defend the or And I have margin intentionally base. good looking you to to deposit

Alberto Paracchini

couple a Ben, on So that. of things

provided on part bracket two opportunity that short-term first question, I on think, consideration. is how kind into of just foremost, I relationships, the think your margin the over kind to we are is which and of questions. type attractive to let's seeing to is latter particular, view One of going and we opportunities add opportunities So really the long-term market. of any And relationships, above grow business in drive the

kind relationship So decision bank a that of above going that type to it's, we be a opportunity any implication. that be add to drive in of that's management likely short-term long to term, the have And over an there's cost to going is to opportunity. and acquire high-quality margin

strong. relates the very, On margin, think the to our is fortunate first would questions, start with our protecting margin the of I I that we're your mark, it part margin saying very and

the good things fit see at of different degree knowing We opportunities also would the Each that the But that of and want funds realistic our profile have it. that one obviously to credit margin diversity margin at the we to our rates business. the margin, are do cost implications has we're of we good our much in to than that indicate. businesses higher

in really think manage terms So first we think long margin drive I and opportunities will we accordingly. is what us term, attractive the I think in we're is saying there business of what summary,

Ben Gerlinger

to? yields. And market pulling That's just competitive give share? different of thinking kind seen areas do there's think would you growth, adding garner bank pockets you risk opportunity that have to you even kind be might Where outlook? the you here, earlier Or expect pockets of you. or potentially economic holistically within you the the different an when within happen at adjusted any you kind Have the of think a Got for adds, lending fair. on silos to especially more lender new certain back yield banks, said, do growth of think what could

Alberto Paracchini

from certainly ask the I ordinary be have of least would could, we're as of a at comment of throw would think anything one say, so now up that higher cap from business new first there competitive you know that well out in is don't originations if to The causes so initially, rates, I quicker, seeing just for that environment, standpoint. would from do going adjusting to construction, the as I cost the equity terms new in competitive subside. say question is both rate rising still payoffs, rates in I so current there's, is I of started input the terms we costs higher market make standpoint standpoint I of much the would projects, higher a which you requirements, new equity think interest also estate, the real impacted,

of I and payoff certainly selling is So market and end of still I projects, the in immediately on in velocity originations adjusting. those think terms the completed, projects and think people that's back terms impacting being

particular market a I dynamic in lending say, probably where seeing opposed would of as we're is any to matter. more So competitive estate real

question. gives some you your on So hopefully, that clarity

Ben Gerlinger

always into been could And more than bleeding and have Got in, your you edge, Not size. to but that. focused technology banks I technology one leaning your better if say guys most of sneak you.

not more to someone bump, deposits think Or that is over you loans were you and of terms your door $XX when on Are cross deal $XX but ready closer in you if you to needed? the threshold? Inland there, and get there just basis? you billion, So to to give an up to the hit gets walk investment billion organic

Alberto Paracchini

also level it. context the kind I some think and liabilities we run about the thinking crossing would organic it go ran the, give would always you be beyond are with cross of $XX at point, that it in it this example That to if get concerned it's and we been do But certainly the and and perfect of just growth, business if that the billion not we've that -- of And company some we've I I the where barrier. would in accomplish there be heft a that to was and be you that. we that think tell the cross want coming assets hovering terrific. on cross that. situation don't $XX.X over it. I that that's able building basis But $X.X could to prepared we're billion. terms know particularly Certainly of bank to simply time billion we not, to you between with

Operator

comes of from McEvoy question Stephens next Inc. Terry Our with a line

Terry McEvoy

Good morning, HI. everyone.

-- questions particularly as CECL. the help left. and for economic Could national what And got with thanks it to relates You've all for your data, talk that, is Midwest future you've from guess maybe I bottom just off, on guess outlook us some core the level, in adoption high question slide also of I First CECL ask a economic CECL smarter are had you the to my XX your that table the And just just are you is using what now? who assumptions? business, businesses. kind but about

Tom Bell

forecasting, for And Analytics now. Moody's concerned the appropriate growth uncertainty out using right It's risk there economic recession. given our obviously, to of potential about slower be We're Terry. and

So, inputs I on really there. using we're the mean, economists forecasts just their the based from

Terry McEvoy

on of year. the the basis, do in on first the year? second And on NII the standalone NII the half continues performance half their trajectory Okay. on your NIM a the of mimic to does that Or Based you margin? of this appreciate in outlook I loans for think commentary grow

Tom Bell

Well, I growth we NII mean, well expect throughout grow as we loan to because the expect do year.

So in to half. will second offset lower rates be the potentially some that

Terry McEvoy

economy just I one caught presentation the economy portfolio question finance Could those then talk do borrowers were or was that risk And soften how softens last the manage maybe as when but rising? about a portfolio think And sponsor it's you in that in perform $XXX don't of kind rates here the which here? how million. you the should

Alberto Paracchini

want do to Mark, take one? you that

Mark Fucinato

review the portfolio sponsor I’d every single pretty finance who's Yes, well. performing portfolios, that month. We say

with So touch sponsors our keep in good our companies.

problem have so they're rates of for what And we know not been so in far them terms through. The a going managing.

to on what portfolio going a We the in of on eye of we every And month. an doing. given very I'm our with niche. particular have are them their effects that with keep again, close satisfied But some they're nature on macro eye keep reviews the that our,

Operator

[Operator Instructions]

question comes Piper the Our Sandler. Nathan with next from of Race line

Nathan Race

Maybe just know continuing Thanks first of year, the questions. And for trajectory of pressures of morning, the play, upward at I and good everyone. kinds including dynamics in taking margins number costs, of this about deposit the is expect to, growth think there's XXX margin accelerate going the XQ? two a is half to can but expect as slow loan by well. expansion of it still margin, that Tom, fair to maybe XXX, of get we slowing you maybe to pace alluded the perhaps the north But as

Tom Bell

question, Nate. the Yes, for thanks

margin top you'll out are to peers. remember, yes, see margin, quartile think I But as still for comments, the margin Alberto our pointed my expansion. we in in relative

guidance give actual on margins. don't we So

competition to But again, the I Sorry to the rates, in about growth general, think expect you'd margin, in marketplace. in subject some subject that.

Alberto Paracchini

a with other higher a see expansion all margin, pretty the back you've I now the given I have costs hold bit only think caller, look, to is Tom’s to I rates realizing are think, much likely on outlook liquidity certainly think we're I additional deposit the add to rates so banks with Tom we now what waking the some deposit is, to here, factors can only healthy market the saying think seen just up little we that much. pricing in that draining, fact everybody and

we're I past. that's had here margin to And likely what But best you the competitive in outlook our you're kind we're given is first normal this you during here deposit think I expand I seeing seen think pricing. happen to guess at think and giving the now more what think half. dynamics of point relative we the to given likely the with see obviously,

Nathan Race

Got tailwind it, it's funding helpful. I And maybe resulting pause, loan stable or as continue have creep if as asset even we kind you imagine lagging which of margin the to costs a more But think well, under a about see scenario. the that assuming is yields higher. Fed that in back you would be of half also margin, repricing some to on assuming static do

Alberto Paracchini

of be one heard the comments, seems the second and is, kind year half consensus. sentiment recession Hopefully, some to of a in caveat our slowdown, potentially latter, it the you type certainly for of

bit as accurate, the So I interest push is at with hopefully, point, push situations assets. are in to the in we'll than hopefully that then caveat, some some where I little where your even a stability mean, see And earning higher it would margin, today. we think see higher two, is margin net in comments expect result growth a margin, continue higher income two the very healthy, very, of to things, in still we decline and a one, can

Nathan Race

securities how XXXX each the flow And, course cash off quarter it. book, coming growth? loan just remind much you have can Tom, got of Okay, over for you sale us the

Tom Bell

I rates about a roughly just little $XX or It's it's so a quarter, have mean, rallied bit. it's Yes. to -- Nate, obviously, million subject

buy it's like something that, little up unless T-bills we So change. that or short-term that it's but obviously, would a picking in bit, range some

Nathan Race

you. Got

on just for like on of loan focus guys been up I step So measured on deposit organic focused the to some is gathering sounds to it deposit that kind back But we the efforts. always growth expect gathering recap growth a XXXX. can really trajectory XXXX you deposits help into I know, the in still imagine more approach have given maybe since loan XXXX.

Alberto Paracchini

Correct, rate Nate. irrespective And be always the the going say, to of case, would really, I that's environment.

to over that I known know grow we think that long think important. to us time deposits key continue business ability to our just is philosophically from you've enough really, standpoint, really consistently a the

add hopefully going the I that's Inland case here is the, then really and with deposit our second -- the will to core add the also I still to adding think into in closing that of forward. merger And more secondly, would So be the half, base.

Nathan Race

ask cycle is from another that bit maybe that Yes, guys degree? definitely. pricing saw than this is the I last beta far seeing deposit your just it. all Are one the thus running you Chicago heard as Chicago pricing wake to we've if of could earlier more consolidation that cycle, believe you the going little kind on a what well, this we've that seen. of comment we anticipated some below Because new into land environment. bank, And competition just less I cycle you what deposit a made in

Alberto Paracchini

market rational, standpoint. would is I I pricing question, more a from would the would the I the think probably be Nate, answer that rational have, way

the question we maybe do find in been I the more So it up community of fact in points. the market. smaller less two would break form your market entrants the the that there's One the today, rational and banks no because is new been of of into fact walls consolidation, because there's that

statement. that's think fair a I

in the have deposit to evolving? that putting loan with you're determine market of in deposit in with now wants correspondingly of regards by kind of the stating were seeing to perhaps belief they The but market entire of be our results. second seeing regarding everybody funded been deposit deposits, the today, important particularly we've they really level as is competitive aside the participants are that dynamics loan publicly ratios price pressures I pricing to that competitive when think, competitive to they and the players market, which ratios, -- the competitors shed I loan everybody's think just liquidity I I that's their that, always competition observing some on how growth reflected want some deposit core the the really dynamics rationally, excess point, think driver are the market, the carrying. of being basically think some the other you're And to

that's two that's, I on think that. our senses So

Nathan Race

is, Okay, impact that what your upper down And ratio? Inland your of bound imagined should ratio, that. on in apologize, Appreciate level remind one, I the us that's loan one last bring great the I excluding which comfort deposit perspective. terms of kind of

Tom Bell

been in where low XXs. and we'd like there's the long flows. has high be run. Guidance to And again, ebbs That's to XXs

goal is to to closer our in XX. be So

Operator

[Operator Instructions]

Our from Brian Martin next Janney. the line question comes with of

Brian Martin

guys. of How that can guess, people, But good here you've morning, next maintaining do as as that forward? seen rates with I great not where mix expectation to kind you deposits. and general, your job as of a is the that recent much just you as and in growth go and you said sounds you in as Maybe you are, on as I little that, fund mix guys the either, changing expect far through we a Hey, loan it comment you sure you look up waking in rate Alberto like mix maintaining deposits. the improved done years? the the year, change outlook have year with obviously who bit, mean, the I'm just just strength, and core environment just done kind the can what's get, you deposit

Alberto Paracchini

I it's consumers, that's of in that. we're that really mix margin, month question, consistent if And you handle stated, want as just bills could be deposits that you I the for to a month's think I three one there'll and have deposits, reasons buy probably seeing, bills to change sense is maintain and businesses Brian. with that and some you I to, want think think at if be to that's degree, industry with some going there'll particularly you with have be think what degree to X% you're meaning or a attract range, an the good you the competitive the in our

likely to be that's unreasonable there's in to margin, have. some the expectation the an I changes I at that So mix. think don't do think

Brian Martin

you. Got

where like government-guaranteed kind mean, in or business? guys balance growth and the talked is maybe but revenue just that as of what wise, see Okay. pretty at the you're look helpful? on about And about we the where thinking that maintain and up -- that stable, just premiums business in just would expectation are is sounds next general, as finding of your sheet expectations far versus more line perspective Is just the from guys be, quarter we ‘XX, be you as you that just ’XX frame may as as have in government-guarantee the guess, I just should today, business, average how business selling, about that I far them given you think how something world the

Alberto Paracchini

the just that attractive, I were we've view last be think for of they benefited quarter. call call But would kind they rather still it should expectation, I exception saw, in not different a I year as ago, than I quarter, It of would is so premiums attractive that environment comment are as Yes, and certainly attractive, an premiums, past are completely mean, are of dynamics they now, very, and say think and very extended are, that little different point we premium would also, I at say this for to we in I still I from that And would happens being rate they're that's for from the I seems where a period today certainly before improvement bit a think time. half with period the time. norm. that I period, we probably

Brian Martin

outlook in of they're terms guess full favorable of we if at I so? more kind a maybe year-over-year, in look at year so the, the in just business, of settle revenue premiums general, they kind where that if Okay, in despite

Alberto Paracchini

that is if -- into obviously a if the in do you mild recession see you would, in do going go caveat one the economy, slowdown the Yes, aggregate. economy what probably be we a again, would to in slowdown see hopefully, is perhaps we though, the a see

just of I So regard, in wait what transpires what think Brian. we'll see and kind that

Brian Martin

you. Got

about even as you're with where kind improve you'd expectation of the of NII to The operating trajectory, that you that year quarter ability the the leverage I each expectation and that's it be that in full up the leverage, this even guess, one, to though get trending I ‘XX. Tom Is I improve given able Okay, that's at ‘XX. in last Alberto. Maybe with would think sounds as bank. helpful, investing operating today? be the just, today, mean talked expectation, efficiency or ‘XX, kind into over

Alberto Paracchini

so. so. so. certainly hope We hope Hope I

Brian Martin

Got you.

the where based a quarter just the are, maybe but much levels Okay. one closing you last mean, going be would where the the in based then maybe on didn't the assertive fourth more bit more opportunistic pricings real on depending And not or capital assertive, buyback, in being given on Inland forward expectation at. I your do was they

Alberto Paracchini

and context through the growth call so just in look opportunities toolbox, of management the, the It’s one always in consideration, buybacks, to Brian, and for tend and it's of organically acquisition. it at the we then a tools dividends, capital certainly

something revisit of So continue think in I plan forward. it's the that given to doing that front is what's and us, we to frequently, going

This concludes pass now closing today's you. for session Thank remarks. back I will for Mr. our Paracchini call. question-and-answer to

Alberto Paracchini

Forem. So thank you,

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

Operator

conference call. participation. your for today's you concludes Thank This

line. your disconnect now may You

Byline Bancorp (BY) 27 Jan 232022 Q4 Earnings call transcript