BY - Earnings call transcript Q2 2024

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Operator

Good morning and welcome to the Byline Bancorp Second Quarter 2024 Earnings Call. My name is Makhai, 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 Mr. Brooks Rennie, Head of Investor Relations for Byline Bancorp, to begin the conference call.

Brooks Rennie

Thank you, Makhai. welcome Bancorp's and earnings quarter everyone, call. conference morning, to second Byline XXXX Good Regulation call Relations FD, and with the accordance In this slides. via our release on corresponding with presentation is is webcast our along Investor website earnings and available recorded being

today's may We financial future part beliefs, factors the statements are company. projections, that that to make differ filings. certain performance risks, discussed that such the other of As results other events forward-looking discussed. or certain uncertainties, constitute statements in cause caution or are to could statements and call, materially The subject management regarding actual company's future disclosed SEC those from risk factors of and

financial substitute In supplement, of be intended the addition, the GAAP our the and for, each may to comparable remarks GAAP measure release. non-GAAP which financial but non-GAAP measures, to slides measures. not reference directly certain most appendix earnings can comparable are measure of Reconciliation the within financial contain found or

additional earnings please non-GAAP in about disclosures the measures financial forward-looking statement the and For and see risks release. uncertainties, information

As conference James Conference like Paracchini, the a plan Bank quarter, this Bancorp. would Stephens I With President call the Bank over Forum. Byline that, to to and of the attending turn reminder now investors, on for Raymond we Alberto

Alberto Paracchini

Bell; our Tom on With you, is Thank CFO, joining Fucinato. for our our Roberto Brooks. Good Officer, morning, the Mark call me Horencia; and thanks call today. Chief everyone, the and Chairman Credit CEO, and

results. we call come with the questions. for the Tom, the will the then highlights I'll quarter, back giving financial by by before who for open you comments, Regarding followed cover closing the agenda, start I'll

refer at deck can always, you website, the find the disclaimer reminder, to our as on a As the and front. please

to Before comments. for some started, want on call Roberto I to Roberto? we the pass get

Roberto Herencia

Alberto, good to all. you, Thank morning and

continue Alberto strong will to was metrics, several and this cover board which with once of Our quartile peer among profitability across our solid Tom the which group. shortly, rank performance top quarter, again

next position ago, Byline threshold go-to we are to We unity weeks to over is talent, made a we this to and I billion was continue Milwaukee all sister commercial and succeed latest proud cross continues country. the safe Chicago. Almost U.S. retaining to of unity results as bank in a recognition attempt and X in a all as our it witnessed attracting and history. the towards our XXXX-XXXX city little have we $XX deliver strong you peaceful can discourse, a politics. and community, city how no about feel a a in because event deeply tragedy; ago. Talking progress only about month, we quickly matter hope our disturbing in want convention Clearly, in problem assassination mentioned week in another organization top just over was with our our as with our This we and

like implementing Report along on programs Small News Company employee World a This result seeking employees these Awards on focus all these employee best-in-class in are year's Work to Congratulations employee Employers, For Midwest. a to are our Best meaningful creating us America's Best with to our accomplishments. a feedback. of and and testament last culture. and Forbes the honor,

growth finish our said weaker, nurturing to headquarters right than sentences, path well, done. be focus replicate. will people banks each key unique, and the being those and the Chicago expectations. processes, that right the from outside market home believe mergers disruption is commercial organic risk the to our horizon, under moving interest ranging banking the and larger and in as decision-making changes our well from and to done reiterate We technology, smaller with turnover. rates talent, hard fuels between can having banking state, to as strategy Just by the differentiated, practices, conditions. This continue and continues using best on to lower and other's credit strategy, shine That When disrupted is a getting easier management events banks team

We our shareholders. to are the franchise the future value and can about our optimistic deliver

line, that, Of we course, it we continue the and but Alberto. out on, path build you, commercial to like is bank to preeminent the like we feel never in a straight we're confident trajectory, can the Chicago. With back

Alberto Paracchini

made were in Great. with Thank noting overall, the progress that, start and strategy. by I'll results pleased executing we you, Roberto. our our we've

deliver our book This XXth privately initial We flexibility. and X past recapitalization building the here when since results billion. the public Chicago tangible operating anniversary years a and $X.X franchise, continue our marked since assets totaled profitability the bank while at in offering $X.X quarter and per strong capital of to value increasing growing share, held billion,

As mark, we strength value long-term and approach we $XX now billion franchise our becoming with and be will results the apparent. consistently asset the believe story clearer, our of

into jump on move and the Let's Page to highlights. X

or again ROAA period. basis ratio year and equity at we of a million, For per at $XX.X for basis points ratio, The the basis points, higher the remained for inflation cost better million, measure revenue expense points, points above up approximately continued XX.XX% of our quarter. XX discipline, XXX quarter, pressures. slightly which up remained Expenses at of in reflecting well-managed our $XXX capital. $XX cost-to-asset million, pre-provision to $X.XX above XXX remained of Pretax pretax efficiency inched strong on on quarter, came income $XX.X at from cost basis despite XX% and a but ago assets was income the comfortably of net share and net was reported year-on-year. ROTCE approximately solid seventh the was XXX million, consecutive Return diluted XX% pre-provision decline

growth X% ratios criticized in of to earning of loans the healthy from continued X.XX% mix Capital good total $XX loan balance growth quarter previous by of quarter basis led with credit total in we and remained said, Other from leasing loans. on and income, of declining total capital were allowance million the both CETX points approaching at quarter. Fee on only more million at activity excluding increased declining X.XX% quarter, deposits. million throughout the $XX.X of drove up with to experienced the normalized reserves the quarter. essentially XX specific to net value remained coming basis stood XX% came slightly to $XXX $X.X X and a X and quarter. million, $X.X mark to previous points Turning between good from X.XX% of more The basis million, commercial targeted acquired and to to decline than Deposits saw with DDAs quarter our flat interest productive levels is a offset on XX as sheet. regard, charge-offs NPLs the the points and during $X income fair expense or declined That annualized, income, X% actively declining end margin at million, were loans books. servicing asset, TCE in the for X% quarter. Provision loan our $X We remained target. quarter, was along and that million, we points X.X% We resolving and our with that to other which XX%, on Last focused of quarter range all resolution in and quarter-on-quarter. the loans with with gain-on-sale end. our trends billion upper to The stable, basis respectively. nonperforming credits, line moderate, at X%. with back up attached, asset which and had was commented X% stable, we delinquencies $X XX% to

as more branch our count our total Lastly, I'd Tom, X you will branch we quarter who over of per call on like deposits average to turn $XXX bringing million branches, results. about to provide consolidated the and that, pushing detail end. With XX, to to

Thomas J. Bell

to everyone. higher our million, Slide billion. commercial estate good over XX% last year, the by total concentration and driven ratio rates X. When portfolio loan morning, by million, and comfortable X% development loan activity CRE past at had Starting our remains Alberto, remained neutralized regulatory increased looking $X.X of XX%, loan We activity, our our origination XX% on quarter activity quarter. you, Combined with up our or XXX%. payoff our offset portfolio $XXX $XXX loans healthy, for a annualized, and with from points, leasing percentage utilization Business to and at more teams. X real Thank by strong the to declined portfolio compared commercial to

As we the year, in head half the of digits. mid-single we the second to growth into expect continue loan

quarter slight billion, driven seasonal outflows Turning from to a broker deposits. deposits decline Slide second by stood at X. and first Total the $X.X flat in quarter,

total deposits outflows deposit at On at the here We back XX% as The XX%. interest-bearing a a grew and decelerating already quarter. come most basis, at seen pace, mix of third slower a with have betas moderated, pace linked quarter. those expected, cycle-to-date deposits at in

funding in contributing cost believe marginally expansion high-quality strategy of at relationships to net interest remains that We income the continue quarter. our to the a long-term an for tradeoff attractive higher

to up Turning income growth stable The due deposits. the in loan was interest prior $XX.X from expense million Net offsetting QX, NIM X. portfolio, to X% for at on interest Slide quarter, primarily the remained X.XX%. higher

yields. Further, facility would ] by More increased points. X core asset linked higher importantly, driven basis yields [ NIM additional NIM if point exclude our basis points, term quarter. basis we an exclude loan X expanded trade, XX if investment been and of loan accretion basis income by we have higher points, the Earning our X

cuts cut on If $XX no estimate range. is rate impact for $XX QX, quarter illustrated million the Fed to in we were income rates, the the Assuming the interest net NII to our X. million Slide in to

is million cut, the every rate quarterly roughly XX impact $X.X point For $XXX,XXX, basis or annually.

offset X. of on $XXX,XXX XX.X% approximately prepayments primarily linked fair premium of QX, loans which loans unguaranteed securities. asset to due million by net quarter, higher Slide down loan premiums. net $X.X servicing $X.X mark in in Noninterest was average and but equity was the on quarter, to QX, This an income loans a of negative sale of compared to than a to driven million second quarter, higher $XX.X million to volume sold Turning fair adjustment the due $XXX,XXX of flat sold. value higher value primarily mix partially on the was gain totaled the for due The by increase first is

income QX. for million range of $X are $X gain-on-sale to We million forecasting

Turning to X. Slide

from $X with the in Our managed in branch and in expense quarter offset for came by and noninterest consolidation guidance. occupancy prior to and down million mainly QX professional is line expense, due quarter, X% in The increase charges QX the well lower million decrease $XX.X second at taken remained services.

to expense of remain on $XX million. our guidance million management expense and disciplined to continue $XX noninterest maintain We

Turning to X. slide

this in where PCD. of of to Provision deteriorated, asset end credit quarter. the portfolio. QX, and million, relationship at of loan For XX primarily compared added we million QX. a previous reference, end The of X came purchase the unfunded break one out NPLs allowance charge-offs of additional QX lower the in basis quarter on million Net $X by the expenses originated total from X% for ticked basis we from included was your in commitments. decreased the by at that C&I loans level to driven quarter. credit quality prior disclosures in $XX.X $X.X down to $X.X in million, government $X The is down our for points $X.X guaranteed increase up the slide quarter losses acquired million, result is to million points

X to If total guaranteed in loans, graph, XX were bottom can points you excluding see the government NPAs by basis points. you basis at NPLs the to assets XX decreased points QX. left And basis look

slide XX. to Turning

the ticked deposit ratio to outflows. up and growth loan seasonal loan-to-deposit due the For quarter,

deposit We time. continue to over XX% below new focus loan-to-deposit targeting relationships, on growing ratio

provide us positions capital a Our strong remain back enter foundation we of liquidity continue the well which and half to ample levels XXXX. as and

XX. Moving and above levels. Capital capital transaction on remain are on to Slide pre-Inland levels already strong

XX.XX%, the to CETX ratio our target. XX% nearing points XX from increased Our basis prior quarter

total points by XX to increased capital quarter Our linked basis XX.XX%.

basis is ], ratio the ratio approximately higher. the trade up basis at linked our Additionally, term points to XX TCE TA quarter, X.XX%, [ facility stood points TCE excluding X and

and $XX.XX performance share metrics, last Our an another with of X% to year. strong excellent value resulting year. We per book than solid the quarter linked X.X% higher in tangible first is half increased quarter had

strategic our More we back against to you. that, continue our exercise Alberto, importantly, to demonstrate to ability priorities. With

Alberto Paracchini

Thank Great. Tom. you,

Wealth, continue and to the we Officer, new are on important we made quarter, Officer, capitalize To the of Chief a business, end, Chief business. we While our wealth including the to Senior results with additions opportunities pleased Advisor. grow that Investment a Head for Client to Fiduciary

to and We remain of several the selectively also marketing strengthened to add hard talent organization. with key a worked on our to lookout team talent hires. We've continue high-quality the platform attracting build capable to

healthy. the and pipelines is overall to good As far flow outlook deal remain as we continue concerned, see

well-positioned I find funding tradeoff long-term business run one. of an short last relationships marginally the in remain As attractive our acceptable stockholders in and quarter, us to to we adding continue our the take of to our intrinsic to opportunities higher to and of costs promises dedicated growth mentioned at all front We attractive stakeholders. providing of delivering and advantage on long-term value

possible entire turn team. With this back dedication Byline without to Lastly, the questions. operator, efforts of be would and I'll our none to of that, you take strong

Operator

Instructions] Piper first Sandler. Nathan is question of [Operator The the of line from Race

Nathan Race

of credit It maybe more thoughts the we you was office office, and XX can share broadly I'm what Slide curious disclosures from residual And great seeing impacts. commercial from deck. hear guys the can't in real perspective Chicagoland some on you're just your just that arena, the in on commercial a curious the improvement any to see estate glean in maybe also, some portfolio. what to

Alberto Paracchini

Sure.

your part the guess to the XX question I So, start deck? your Nate, of talking first about question, on you're with or first Slide

Nathan Race

Yes.

Alberto Paracchini

Anything in cover? us you to particular want

Nathan Race

I disclosures provided. if seeing across you're we share you maybe thoughts just the your can't on what from curious No. glean portfolio any was that other could

Alberto Paracchini

Sure.

So, office I side, share. we on think can the

the quarters. And for over of So, like, classified, let's the move be the We of of rest assets we of where are identified, assets have several already terms upcoming then good renewals next maturities those the very good out specific pipeline that we it, against, already about both talk hopefully already feel on reserves are about to here several what have feel the where terms about extensions. pretty to looks in in maturities in we've of company able quarters. terms of and next

So, the several coming we what 'XX, we at feel quarters, probably this next over into part pretty the of 'XX good have point. early with

some on that. that's additional certainly in. And will color So, hopefully chime Mark

throughout far to if be of of dated confluence in tale I the sources, going out Chicago, data class As Business seeing really think Obviously, think publications, And those as only challenging. you're a in I properties you're office office but from District, other here not news B about CRE and different large market, talking that factors. areas. Central different seeing it's play sources metropolitan the are very you're

Fortunately, we're not a lender in that space.

also think terms of pretty dynamic. is that I point don't rate out, dynamic well we're I in And would So, positioned that driven.

been obsolescence stock just for buildings. I that's a some think of COVID. in back that's that's gradual time, decline And of something before that dating

I think suburban is faring better.

pretty think certainly city. more resilient. in would I you've seen terms In of be Central that to here I a newer newer, those think market, your I that think And in typically much impact areas, properties you in within those exceptions, with buildings buildings emerging case, District are and bit the Business this say, are urban the office a Chicago, amenities, pockets typical class work-from-home urban than I And would dynamic emerging have of tends property. then, I some to West point in Loop. they the more new

you Mark, if want to that. Nate, color add don't I additional So, to know

Mark Fucinato

still multifamily across selectively, Yes, same across that in type fortunate depending buy to country, them of resolve them We Nate, are time, positive seeing I situation. in think X were apartment But somebody to the movie at because the loans and the probably some we're convert that the really maybe signs, metro problem on the again, globe. on wanted areas. to middle office, had we we situations

to over the of see I of because coming or appraisal movie obviously, X.X But of but to office I and the that's half still to still in, in opportunities building going over are especially on happen, capital resolve So, there that in available the now out regarding is appraisals, terms what's the said, the is I there our is We're as problems taken year place looking some new what's to not there. interest think, space, think. values do impact end, there's the last loans, some so. starting you're

Alberto Paracchini

important of standpoint add underwriting terms And an focused properties there, said to tend what and this looking be very tend appraisals. focused terms I from to of in of reality in think to Nate, we very to the distinction, is ahead be because yields, Mark well debt of we at an

about thinking about we're current are thinking to we're debt cap rent in on the thinking rolls, yield we're properties of rates, appraisals in So, eventually starting changing when about done, declines anticipation see value.

not guess valuations properties waiting ultimately for appraisal current to what I So, that is market reflect we're say trying to reacting here rates reacting are to of conditions. I'm and higher to an

surprise a for not that's us. So,

Nathan Race

basis impacts a on Tom's it's couple X, X-for-X point know X, NII competitive the feel cut each guys Changing curious, from can extent what is just deposits XX going Fed. depend the And questions: a you gears, static I do under amount each appreciate cut? around of or comments factors. reprice that to that by what to And analysis? following I

Thomas J. Bell

Sure.

is it on we as look at the you have well can static, a First, slide. scenario that ramp did and

relates it reprice. As significant there amount a to repricing, that is liabilities will of

CD is X.X months. months, X Our book roughly

little there down on but that's for is the months a So, lag the that, Fed X technically September, move if in us. road does

to have reprice book. So, lag of we're be there CD to on quickly, the going will some but number a opportunities

Nathan Race

amount speaking help And can portfolio, replacement at, coming what off just that's in rate cost of us quarters, maturing you Tom, what next you few of and today? of have is Yes. theoretical the over that just your CDs terms the

Thomas J. Bell

we're about now. in level of for maturity [ And rest is that the average right the year The average XXX issuing ].

So, the then basis XX were on see or what if does. you'd lower, points to XX cut, Fed rates depending

Nathan Race

heard more been institution some chatter one ask Chicagoland last week on in just could from I increase front. if there's the lately. another And We Great. that Okay. M&A

seeing the given and on hearing, just guys' your curious $XX set, to you're billion. So, get total assets opportunity what perspectives stand today, and where the updated just under just

Alberto Paracchini

pretty think always that in been, word, that think from things been I standpoint, There's for regard, Nate, steady. underlying lack going have I better chatter a on. our of

we've rates given rally month don't I well the or or we higher have been, challenges bit Fed some do that impact started AOCI been you that raising are the institutions, the of there when you're so, talking think range. since a headwinds that's billion for about that market, the like in that back rates have the over going that, we last suspect, to regulatory the obviously seen under and an you that impediment M&A. And same billion, are in under a $XXX to headwinds $XX expected lot certainly, under which of asset have the the

So, activity will here been our it's where market from more sense is pick recently. likely probably up

So, some gives Nate. you that, hopefully, that on color

Operator

next Nosal Our Brendan Group. Hovde with question is from

Brendan Nosal

by overall funding slowing, the for off like to up want on up the the and the how on you quarters. margin upward given your look pace see next we to firming that start metrics trends reported of as both core were ahead, quarter to here. and basis I the Just cost think Nice funding the guess, single-digit just thoughts only basis. on cost of trends points few this is curious drift hear margin

Thomas J. Bell

guidance Yes, you think last NII, I and Brendan, in range guidance we the higher slightly normally similar that than we give on see quarter.

have home side, relatively through elevates here. at loan will liability have decretion process stable the just the income some pretty be which but mix quarter, the any unless so should additional other there's costs balance margins this the offsetting think interest I from but other Accretion bank you're end declining, that, cash, be of borrowings much is we sheet. the net going happening, typically see than our to change peaked On

Alberto Paracchini

said. add just what Yes, just could a Brendan, more to I touch if Tom

X GAAP ex and it happened that at I look happening, margin think offsetting accretion asset there's you like a just obviously, with quarter, between look, this margin basically what earning repricing if That liabilities. points. rate-bearing this Tom at assets you basis what confidence gives us and there's that's the earning take growth, in happened importantly, you said, look saw mentioned, easily the quarter lags,

noise it, or a down, in accretion, higher. growth couple feel net that interest we forward basis the good So call up asset to able or minus offset about of pretty going margin thereby pretty points we pushing that, around ex with income confident being terms plus earning feel

Thomas J. Bell

on trade And basis interest would of, impacting does, transaction, is what the could so the remind maybe other Fed facility you increase, thing away you'll the X the [ term see ] margin not the net go points. I by margin sooner, just actually That depending but income.

don't I And are for I like and think is like net NIM So, net margin reminder is generally you lower to that have interest January that and part we'd factors what. of have income a speaking, no guidance can your yet date, income. expand, transaction give why to have higher interest matter there end

Brendan Nosal

for on the commentary Yes, charge-offs reminder that's to that and credit margin guys moving did. helpful the one here. intentional that color, BTFP the Maybe you off for the me, currently. thank drag this you quality tied more on to cleanup were Appreciated quarter

quarters, much in what Just think might think next more to the line as then and result and to do curious have a up might charge-offs end provisioning few you sight how needs? being cleanup related of you you any pursue

Alberto Paracchini

Yes.

if So, Tom back, touched this on his on go think I and remarks. you

to last capital exactly year. the where the to we And we the I were Brendan. front, our drive Inland to think made want credit are back prior he of to, I say what comment on acquisition levels that that's would

say at the XXX a if let's for were today pick to but loan look, we're we where XXX. So, in criticized I standpoint, range, basis from, closer instance, from a point number,

that number in a rerated loan probably That we March. XXX that points. basis that was as So, number acquired portfolio, we peaked increased book, after

were we're down comment point my remarks $XX I down. So, about criticized a And to million. that on made that

about ratio. basis that in points So, of decline that's a XX

loan want to said to to what on what So, similar the to to what Tom to we're get trying that's we're capital, trying -- on is we do drive portfolio.

guys you the to So, are comments just on some quarter, give color. charge-offs this

basis that points. yes, So, figure printed the we was XX GAAP

would loan, points, normalized If basis closer more we which is would which XX have expect. you is out the number to been acquisition-related what number, a take that

answer think, that by I levels to So, to to the as reposition loans become part us. where loans being as and back down redeploy were we get they of cash second your portfolio into the we question, originated want those we

So, what point but on to similar provide towards. that's Tom capital do to portfolio. the we on driving thing we're the what criticized made, want commentary forward, and continue the We'll going color the same on side that to

Operator

The is KBW. DelMonte next question from of Damon

Damon Del Monte

A up an question on securities portfolio. balances the this quarter like basis. on average Looks were

what continue thoughts are liquidity Just wondering cash to the going forward. or put growth? you use Would would you to securities, loan to flows excess fund expect into

Thomas J. Bell

Right relatively is Damon, portfolio stable. Tom. now, the

I think I like bit do we little as balances to from cash but on you much the higher, balances more opportunistically, for cash but flows. would it's reduction end that if sensitivity Again, of probably at period lower growing a replacing here. definitely sensitivity, was also here, out were cash, if move a some the point certainly standpoint. at our managing, look quarter, but given average certainly the look you just just forward we'd

certainly standpoint. no inverted just lower given at So, given change a are in we sometimes strategy at security which the levels from cash versus securities, this rate point the investment in real curve. stay But

Damon Del Monte

demand and do back here goes, lending All of digit the feel expect right. as And it. like leasing guys of the growth the you think, be half year. there's growing growth far Do the you in more driven to commercial that side I Got or mid-single C&I estate? real Okay. platform, in the by you loan as said then

Alberto Paracchini

speaking, business broadly other smaller segments not broadly Yes, just some I of of some and of for lines. C&I Damon, banking and the speaking, think necessarily business, smaller the the example, commercial, commercial like maybe

as think well. certainly yes, So, broadly I leasing speaking, commercial,

seeing are transactions There As done in getting are far as market. CRE transactions. the we

like it's are not flow seeing not we So there.

We speak. real are as estate transactions doing we

bit here to your think lead is for relief, months, I if broadly side. And think to is going is for, then more for the point CRE CRE reasons, to I the is, broadly that's in what you're on and transaction is I market activity going think activity activity spur to to well-understood rate that is coming I decline a were is the likely financing obviously think up, see likely to more which more pick in waiting what the rates to market. waiting of

that, draw So, we can that conclusion that in you think straight so comment. participate I from

Damon Del Monte

it. Got

a of this Okay. TCE on And end before, management was your I is you your from the that touched target higher range. ratio standpoint, capital think then but noted

thoughts updated it be funding to get growth on whether potentially over or or M&A $XX or through any capital So, management, level? buybacks on focusing organic the dividends just billion you

Alberto Paracchini

Sure.

So, to growth of continue fund organic balance focus to sheet, on first continue and company. foremost, the the

comments terms our both and comments heard regulatory as well upper capital in You end. certainly Tom the TCE, also both of and my related are as to we at

we to secondly program we want will throughout at accordingly. dividends thirdly, priorities in. in are certainly something our I outside capital to that's then the and certainly buybacks, we place, growth and So, of the of look terms think organic that And in so to we'll we've a flexibility seen degree participate return that there the have M&A history, certainly, have like opportunities

Operator

with Stephens. question line McEvoy Terry next from the of The is

Terence McEvoy

some clarity your comments. just Tom, opening Maybe, around

sheet do so flows on bottoming Was the quarter. QX about talked half in do noninterest that of balance bearing coming You those year? you And funds? deposit the you balances this see this in back see if back far not, or

Thomas J. Bell

is our that we commercial saw consumer have Terry. clients. payments Really typical and what clients Hi, tax

range -- think there the we the XX% stabilized And we're is some that to there. on not XX%. we're in so, of giving -- guidance it's in DDA Again, DDA is in

happened accounts, are already So, of in interest-bearing in outflows is back here amount most and the it we've seen QX a of July. that significant

comment that. So, that around was the

question. answers that hope your So,

Terence McEvoy

one, was and small the other in quarter, one eye. interest quarter over And increase at over it in were average caught yield my up checking terms quarter just up of and rate balance, just I was looking the balances and quarter

I to and why the So, increase balances? wanted the in question, ask both rates

Thomas J. Bell

Good higher question. rate We that their than to had have commercial deposits. a on earn wanted clients X number of a

the and why shift you mix see that to bearing DDA And due interest than on that rate so, higher is part that's a was paid X. into

Operator

next of David question line is James. Raymond from with Long The the

David Long

talking banks pretty of positively that in a pipelines of about now. your you're other right You you here the that some not guys the are same think Chicago. if lot I'm commercial curious hearing that's opportunities to getting as I'm on commercial from And changed does pulling and competitive deals? several the how seeing you C&I coming just coming look over back both and last from that on are competitors is maybe side the And landscape what like? has CRE Who potentially overall, on And months? the

Alberto Paracchini

Yes.

the primary question take to compete your competitors actively we see those the that market for part trying first, we We see and win second the daily. see of players to business. in So, same

market market Chicago call of So, changed. the maybe what ours, And market, up you're to where that operate have more to of acquired they to on held that business talking some tilt mid-market to institutions core is type the different, to want in and book have at that's have start the Roberto call, focus piggybacking cases, think in into as come their much here. and companies the companies, more about there the I other strategy maybe deemphasize, where privately commercial general they dynamics in the particularly just not said the institutions, larger traditional start it, and certainly are

think at I about remnants approaching and are or of think, that, larger and still particularly to they're regionals Basel to asset where starting something their levels. people super-regionals, some still I about they're those particularly the managing carefully billion with So, $XXX do trying think, implications, or thinking plus, to, have has risk-weighted it. they're III that also you

know, as to and as stated, what is our disruptions, piggybacking added on pointing of differently see to that way past we think, contributions ability think that can larger over terms also And organization, to results it opinion a of the from than you a we market have where Dave, the this the a their but and win years. I platform this, again, for to importantly, their talent well. And times or very gives is clients, also We that. several looking there's lastly, the in and attract the the something in I would. benefit and certainly the serve in institution that to benefit just Roberto talent them of ability ability they really results clients then of

definitely comes hire bear that So, forth. seeing for made to as also We're a recently that them of activity business, and bankers those so we client from hires when time passes into as are starting expiring periods A good I lot ago year that fruit. the play. period of good we've think nonsolicitation to as the

frequently, to continue I the that to they terms competitive So, well. But are reiterate that's with we point, against have as see the and compete contributing as they them, always again, competitive of to that as banks we think in been. first

change no regard. that So, in

Operator

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

Alberto Paracchini

and Byline. weekend. Okay, call the great. you Thank for joining the end this We thank all you, of operator, forward your to morning and again Thank quarter. interest have great to speaking you in a next look you and at

Operator

line. today's like would I now Thank disconnect concludes today's you. to This call.

disconnect. may You

Byline Bancorp (BY) 26 Jul 242024 Q2 Earnings call transcript