Byline Bancorp, Inc. (NYSE:BY) Q4 2019 Earnings Conference Call - Final Transcript

Jan 24, 2020 • 10:00 am ET

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Byline Bancorp, Inc. (NYSE:BY) Q4 2019 Earnings Conference Call - Final Transcript

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Q & A
Operator
Operator

We will now begin the question-and-answer session. [Operator Instructions] The first question comes from Michael Perito from KBW. Please go ahead.

Analyst
Michael Perito

Hey, good morning guys. Happy New Year.

Executive
Lindsay Y. Corby

Happy New Year, Mike.

Executive
Alberto J. Paracchini

Happy New Year, Mike.

Analyst
Michael Perito

I had a few things I wanted to hit. I wanted to start on the expense side, the $42 million to $44 million kind of run rate for 2020, Lindsay, obviously it's a little wide. I'm curious how you think the trajectory of the year? I mean, it sounds like you're a little bit more optimistic, maybe about being towards the lower end in the back half of the year versus the first half. Is that kind of a fair read on your comments or would you got me in a different direction?

Executive
Lindsay Y. Corby

That is a fair read on the comment. So we do have seasonality in our business, and we do tend to have higher expenses in the beginning of the year. So there is that level of seasonality that does take place. So I think that's fair, Mike.

Analyst
Michael Perito

And then just kind of a follow-up on that same topic, as I think about kind of stability in the efficiency ratio that you guys have had over the last couple of years after the big improvement in 2018, what -- I realized it's heavily dependent on rates and margin. But if we just kind of assume your margin guidance at face value here and that rates don't move dramatically, I mean, what type of efficiency ratio do you guys think you could achieve in 2020? I mean, is it -- do you think you could continue to have the stability? Do you think there is some upward pressure? So any general thoughts on that topic.

Executive
Lindsay Y. Corby

Sure. I think in terms of the efficiency, there are definitely headwinds. Obviously, you thought this quarter with the rate environment. So I think there is pressure here upfront, but I do think that in terms of the latter half of the year, we will see the ability to guide that down up into the high 50s.

Analyst
Michael Perito

Okay. And then Alberto on capital, obviously you just have an active 2019 between Oak Park, dividend and share repurchases, you kind of mentioned it a little bit. I was wondering if you could expand maybe a little bit more for us just on what the capital plans are for 2020 and maybe specifically, kind of what the appetite is to use buybacks here as we move forward.

Executive
Alberto J. Paracchini

Yeah. Mike, sure. Look, I think we certainly remain open to that. Obviously, that was one of the reasons why we instituted the program at the end of last year. I think flexibility is important. Obviously, if we look at our capital levels today, they are healthy, which is great. I mean, given the beta uncertainty still on the environment, I think that's prudent. That being said, we just recently instituted a dividend. So I think that's a good example of us taking action