BYLINE BANCORP, INC. Q1 FY2025 earnings call

• Roberto Herencia thanked colleagues and noted strong quarter for Byline, mentioned upgraded credit ratings, Forbes and Newsweek recognitions, and progress on valuation. - Alberto Paracchini discussed the operating environment with uncertainty, successful completion of First Security transaction, which closed April 1st with systems conversion done, and shared results including loan and deposit growth, NIM at 407 basis points, improved credit quality, and strong capital metrics. - Tom Bell detailed loan portfolio growth, deposit mix shift, net interest income details, non-interest income, non-interest expense management, and credit quality improvements.

The company reported net income of $28.2 million or $0.64 per diluted share. Total revenue was $103 million. Net interest income was $88.2 million. Loans stood at $7 billion at March 31st, and total deposits were $7.6 billion. Pre-tax pre-provision income was $47.3 million with a pre-tax pre-provision ROA of 209 basis points, marking the 10th consecutive quarter this metric exceeded 200 basis points. ROA was 127 basis points and ROTCE was 13.1%.

• Net interest income for Q2 is expected to be in the range of $87 million to $89 million, excluding security impact. - Dividend payout ratio was 16% of earnings, with an 18% payout ratio to stockholders when combined with share repurchases. - Expect loan growth to continue in the mid-single-digit.

• Macro environment with heightened uncertainty and volatility across markets, evolving trade policies introducing complexity and uncertainty. - Potential for reserve builds based on deteriorating economic forecasts as per CECL standards. - Market volatility potentially impacting M&A opportunities.

Q: Nathan Race asked about loan committee activity, SBA underwriting changes, and M&A landscape.

A: Alberto Paracchini discussed loan origination activity, clients' wait-and-see approach, SBA underwriting standards, and ongoing M&A conversations.

Q: David Long inquired about criticized and classified loans, reserve levels, and economic forecasts.

A: Alberto Paracchini and Mark Fucinato provided details on criticized loans, reserve building based on economic forecasts.

Q: Brendan Nosal asked about pre-provisioned earnings power, sponsor finance portfolio, and SBA gain on sales.

A: Tom Bell and Alberto Paracchini discussed pre-provisioned earnings, sponsor finance portfolio details, and SBA gain on sales guidance.

Q: Damon DelMonte asked about SBA gain on sales, net interest income guidance, and securities portfolio.

A: Tom Bell provided SBA gain on sales details, and Alberto Paracchini discussed net interest income guidance and securities portfolio outlook.

Q: Terry McEvoy asked about First Security marks, expenses, and fee income.

A: Alberto Paracchini and Tom Bell provided information on First Security marks timing and fee income focus.

Q: Brian Martin asked about net interest income guidance, repricing opportunities.

A: Tom Bell discussed net interest income sensitivity, repricing opportunities on funding side.