Q1 2022 Byline Bancorp Inc Earnings Call
Good morning.
And welcome to byline Bancorp's first quarter 2022 earnings call. My name is Emily and I'll be your conference operator today, all lines have been placed on mute to prevent any background noise. After the speakers' remarks, there'll be a question and answer period, if you'd like to ask a question simply press. The star followed by the number one on your telephone if you'd like to would you go with your question.
Presto in case, if you are listening via a speaker phone. Please lift your handset prior to asking your questions. If you require operator assistance. Please press Star then zero. Please note that this conference call is being recorded at this time I would like to introduce Brooks for any head of Investor Relations for byline Bancorp to begin the conference call.
Please go ahead.
Thank you Emily good morning, everyone and thank you for joining us today for the byline Bancorp first quarter 2022 earnings call.
In accordance with regulation FD. This call is being recorded and is available via webcast on our Investor Relations website, along with our earnings release and the corresponding presentation slides.
Management would like to remind everyone that certain statements made on today's call involve projections or other forward looking statements regarding future events or the future financial performance of the company.
We caution that such statements are subject to certain risks uncertainties and other factors that could cause actual results to differ materially from those discussed the company's risk factors are disclosed and discussed in our SEC filings.
In addition, certain slides contain and will remain referred to non-GAAP measures, which are intended to supplement but not substitute for the most directly comparable GAAP measures.
Reconciliation for these numbers can be found within the appendix of the earnings release.
For additional information about risks and uncertainties, we see the forward looking statements and non-GAAP financial measures disclosures in the earnings release.
I would now like to turn the conference call over to Alberto <unk> President of <unk> Bancorp.
Thank you Brooks good morning, and welcome everyone to our first quarter earnings call. We appreciate all of you joining us. This morning with me on the call today are chairman and CEO , Roberto or NCS, Lindsay Corby, our CFO and Mark <unk>, Our Chief Credit Officer as is our normal practice I'll start by walking you through the highlights for the quarter.
And then pass the call over to Lindsay, who will provide you more detail on our quarterly results before opening up the call for questions.
Turning over to slide three of the deck during last quarters call. We mentioned that the momentum we had in 2021 would carry forward into the first quarter of 2022, and we were correct on that assessment notwithstanding the fact that the first quarter. It turned out to be one of the most volatile periods, we've seen driven by continue.
<unk> elevated inflation, our more aggressive response from the fat than expected and the challenging situation in Ukraine. We delivered excellent first quarter results. The results were driven by positive trends in several key areas first we had terrific loan growth during the quarter, which was in part aided by lower payoff activity and <unk>.
Your line utilization second deposit growth continued to be strong and third we continue to experience outstanding credit quality, which when combined with strong capital generation allowed us to continue to grow the business and return capital to shareholders.
All that said we've been in this business too long to think the credit <unk> operating environment will always be so benign we don't take this for granted and continue to proactively monitor our portfolio and business lines for any sign of stress.
Net income for the quarter came in at $22 3 million or <unk> 58 per diluted share. This was an increase when compared to the previous quarter and year ago period profitability and return metrics were solid across the board ROA came in at 135 basis points, while our OTC was 14, 4%.
Pre tax pre provision revenue was at $33 6 million, which puts our pre tax preparation ROA at a robust 203 basis points up 74 basis points from the previous quarter and essentially flat on a year over year basis revenue for the quarter came in at $78 2 million, which was a bit lower link.
Quarter, but up 8% from the year ago period, moving onto our balance sheet. The first quarter saw continued growth in both loans and deposits loans ex PPP increased by $339 million or 31% annualized and stood at $4 8 billion as of quarter end. This was.
The fourth consecutive quarter or very solid loan growth that culminated with loans again, excluding PPP growing by $915 million or 24% on a year over year basis.
First quarter for us tends to be seasonally slower notwithstanding overall business activity was strong and we saw well balanced growth across all our lending businesses, we originated $325 million in loans for the quarter up from $280 million the prior quarter and benefited from low.
Sure than expected payoffs strong lease originations and solid customer activity on this latter point, we continued to benefit from customers increasing their use of their lines as we saw utilization tick up by one percentage point to 54% from 53% last quarter, which.
Contributed to commercial loan growth, our government guaranteed lending business had another quarter of strong production with $129 million and close loans, which as expected was lower than the fourth quarter, but up 16% on a year over year basis.
Deposit trends continued to be favorable during the quarter total deposits grew by $375 million or 30% annualized and stood at $5 5 billion as of quarter and a record level for the company with the growth coming primarily from money market accounts the mix remains strong with DDA reps.
Resenting, 41% of balances deposit costs were flat on a quarter over quarter basis and remained at a cycle low of eight basis points with respect to profitability.
Our margin contracted 15 basis points to 381 from $3 96 last quarter. This decline was driven primarily by lower loan fees and PPP fees that said our margin remained strong both in absolute terms and relative to peers, if we exclude accretion and PPP fees, which are.
Both not material for us at this stage our margin declined by 5% to six basis points and remains in the top decile for banks our size the combination of an asset sensitive balance sheet and high quality deposit base positions us well over the next several quarters for the expected rising rate environment.
Noninterest income came in at $19 4 million up 2% from last quarter and 23% over last year of note. This quarter was a nice pickup in our wealth management fee income, which increased by 36% on a year over year basis, the balance between revenue and expenses remain well managed.
Our efficiency ratio coming in at just under 55% for the quarter and improving both against last quarter and the prior year asset quality results were very strong for the quarter credit metrics were solid across the board with NPL, NPA and charge offs continuing to decline quarter over quarter.
Both dollar and percentage terms capital remains strong with a CET, one and total capital ratios of just under 11% and 14% respectively. Our financial performance and strong capital base allowed us to continue to return capital to shareholders with the repurchase of approximately 283000 share.
Shares of common stock and the redemption of our series B preferred stock on March 31. This being in addition to our quarterly common dividend of <unk> per share given the strength of the balance sheet. We believe we're well positioned to continue to support organic growth invest in the franchise and return capital to shareholders.
And with that I'd like to turn the call over to Lindsay who will provide you more detail on our results. Thanks Alberto Good morning, everyone I'll start with some additional.
Additional information on our loan and lease portfolio on slide four our total loans and leases were $4 8 billion at March 31, an increase of $227 million or 20% annualized from the end of the prior quarter.
Excluding PPP loans and leases increased by $339 4 million from the prior quarter, we saw payoffs moderate for the quarter down $180 million to a $127 million our originated portfolio increased by $387 million when PPP loans are excluded for the quarter.
Each commercial lending areas of the portfolio increased from the prior quarter.
While macroeconomic conditions may pose a heightened level of uncertainty we are reaffirming our loan and lease guidance towards the higher end of our range with projected high single digit growth for the year, assuming normalized payoff activity.
Turning to slide five we'll look at our government guaranteed lending business.
At March 31, the on balance sheet, SBA 70 exposure was $478 million.
Nearly $15 million higher than at the end of the prior quarter with $92 million being guaranteed by the SBA.
On balance sheet exposure was $65 million flat from the end of the prior quarter of which $26 million is guaranteed we.
We continue to see improving trends in this portfolio as a result, we slightly decreased our allowance as a percentage of the on guaranteed loan balance to seven 4% from seven 8% at the end of the prior quarter move.
Moving over to deposit on slide deck.
We continue to benefit from our strong core deposit trend growth continues to be concentrated in commercial transaction deposits that are replacing higher cost of funding as expected. Our total cost of deposits remained flat at eight basis points with rates expected to rise we would anticipate deposit pricing pressure at some point later this year.
Commercial deposits represent about half of our total deposits and 77% of noninterest bearing deposit.
Time deposits represent 11% of total deposit our deposit composition continues to be a core strength of our franchise.
Moving on to net interest income and margin on slide seven our net interest income was $58 7 million for the quarter a decrease of four 8% from the prior quarter. This was primarily due to lower loan fees and lower volume of PPP forgiveness net.
Net interest income on a year over year basis increased 12, 3% as a result of replacing PPP loans with organic loan growth.
On a GAAP basis, our net interest margin was 381 for the first quarter down 15 basis points from the last quarter, but up four basis points from the year ago period.
Accretion income on acquired loans contributed 10 basis points to the margin for the first quarter up from nine basis points in the last quarter Pvp interest and net fee income combined contributed $2 7 million to net interest income for the first quarter compared to $4 5 million from last quarter looking forward, our GAAP margin will be impact.
By the $1 3 million of remaining net processing fees from Pvp, which we expect to be recognized over the remainder of the year.
As a result of the rising rate environment, our asset sensitive profile and our organic growth. We believe our net interest margin, excluding accretion and PPP will be again to expand during 2022.
Moving on to slide eight we have intentionally maintained a balance sheet and a balance sheet that is balanced and approach to managing interest rate risk we.
We believe our asset sensitive balance sheet positions us well for rising rates and we estimate that an incident 100 basis point increase in the interest rate will result in an additional eight 5% increase in net interest income and you break it down further every 25 basis point increase would result in approximately $4 million to $5 million of additional net interest.
Income on an annualized basis approximately.
Approximately 65% of our asset sensitivity from the short end of the curve.
Asset sensitivity is principally driven by our loan portfolio of which 60% of loans, excluding PPP are variable rate.
Turning to noninterest income on slide nine.
And then in the first quarter, our noninterest income increased two 2% from the prior quarter. The increase was primarily attributed to other non interest income due to higher swap income and a small change in our loan servicing asset revaluation this quarter.
We sold $102 3 million of government guaranteed loans in the first quarter, an increase of 38% from the year ago period. The net average premiums continued to be strong at 11, 6% during the quarter, which was as expected lower than the fourth quarter, our pipeline for government guaranteed loans remained strong and we anticipate premiums.
Decreasing throughout 2022, and returning to pre pandemic average it.
Moving to noninterest expense trends on slide 10.
Noninterest expense was $44 6 million in the first quarter, a decrease of $14 4 million or 24, 4% from $59 million in the prior quarter. The decrease was primarily attributed to two factors.
First we saw a decrease of $12 4 million in asset impairment charges, which were taken during the prior quarter due to branch consolidations and our real estate strategy and second we saw a decrease of $3 2 million in loans and leases related expenses, mainly related to the recapture of government guaranteed loan expenses of approximately $1 million.
As a reminder, the previously announced branch consolidations have occurred in the second quarter and the cost savings associated with that will be realized beginning in the second half of 2022.
We continue to focus on our expense run rate and look for opportunities to gain efficiencies.
We believe the quarterly noninterest expense run rate will trend between 45% and $47 million.
Turning to slide 11 asset quality remained strong we are reflecting our prudent risk culture diverse portfolio and current economic conditions are.
Our nonperforming assets declined five basis points to 33 basis points of total assets, our nonperforming loans declined nine basis points to 42 basis points of total loans and leases.
Net charge offs decreased five basis points from 37 basis points on average loans and leases in the prior quarter. Our provision expense was $5 million for the first quarter, an increase of 37 basis points compared to the prior quarter. The increase in the provision during the quarter was mainly driven by growth in the loan and lease portfolio and changes.
In qualitative factors due to the macroeconomic environment.
We believe we continue to have a high level of total loss absorbency as measured by allowance plus acquisition accounting adjustments, which represented 132 basis points of total loans and leases excluding PPP loans at March 31.
We believe our reserve levels reflect current credit conditions, but also take into account uncertainty associated with inflation rising rate and geopolitical events.
As a reminder, we are still accounting for our reserve under the incurred loss model and we will be adopting Stifel at the end of 2022.
Turning to slide 12, our capital liquidity levels remained strong.
Of note the rapid rise in rates resulted in an unrealized loss on the available for sale securities that combined with share repurchases common and preferred dividend net of the bank earnings resulted in a 99 cent reduction intangible book value of <unk>.
Five 6% decline.
Our total common equity to tangible assets remains above our peers at 936% and we believe our capital ratios position us well to pursue both organic and strategic opportunities.
Through the first three months of the year, we returned 50% of our earnings to stockholders through the common stock dividend and our share repurchase program. We will seek to continue to opportunistically manage our capital through share repurchases with that Alberto back to you.
Thank you Lindsey moving on to slide 13, as you can see our strategy remains consistent and we remain laser focused on executing it while the outlook is complicated by geopolitical uncertainty high inflation and the corresponding forecasts for aggressive tightening by the fact, we're well positioned to tackle both the challenges and opportunities.
This environment creates despite the potential macro headwinds we're optimistic on the outlook for the rest of the year. Our pipelines remained strong our business is well diversified and our bankers are focused on growing new one existing relationships, which should translate into growth in loans and deposits. We also.
We remain optimistic about opportunities for growth for growth in front of us both organically and through M&A, while continuing to create value for shareholders in closing I'd like to shout out to our employees, who once again enabled our strong performance through their commitment to clients dedication and hard work and what.
Emily let's open the call up for questions.
Thank you very much if you'd like to ask a question. Please do so now by pressing star followed by one on your telephone keypad. If you change your mind I would like to withdraw your question from Nicky. Please press star followed by case I'm preparing to ask your question. Please ensure that your device is unmated locally.
Our first question today comes from the line of Nathan race from Piper Sandler.
Your line is open.
Hi, everyone. Good morning.
Good morning, Chris.
Maybe to start off just.
The deposit growth in the quarter, obviously super impressive to see the conjunction with the really strong loan growth as well. So just curious kind of dig into the drivers of the deposit growth in the quarter.
Just a function of share gains maybe clients holding onto additional excess liquidity with all the uncertainty and supply chain issues out there perhaps delayed projects are.
Or other or are there other dynamics at play that we should be.
Thinking about.
Yes, Nate I think I think it's fair to say, it's probably a combination of all of the points that you just mentioned.
So I mean share gains growth in existing relationships new relationships.
Liquidity.
In the system. So I think it's a fair statement to say, it's probably a combination of all.
Thank you.
Okay, Great and then just maybe thinking about the margin outlook going forward ex PPP and the accretion I appreciate all the additional disclosures in the deck around the.
Floating rate nature of the book and just the impact of floors as well. So just kind of unpacking the NII sensitivity to rates up 100 bps, assuming we get at least that over the course of this year Lindsay is it fair to assume kind of the margin for maybe a 360 level exit accretion in pvp in the quarter as maybe closer to 380 <unk> bye.
The fourth quarter of this year.
So Nate.
I don't typically give guidance on exact percentages that the NIM is really an outcome more so than anything else, but we do think it's going to expand.
So we do we did give guidance in my prepared remarks around every 25 basis points, reflecting $4 million to $5 million.
Additional NII.
So I think that should help get you there, but we do think it will expand as I as I did say.
And the next quarter it'll be a little slower and then it will pick up because as you can see in the disclosures on that new slide that we added in the deck you can see that really the bulk of the portfolio does reprice. After the 100 basis points. There. So I think that there's enough there to give you a good sense on a core basis, what it should look like.
Nader and to add to what Lindsay said.
We also obviously the tightening that happened in the first quarter came very late in the quarter. So.
Obviously, we didn't benefit hardly we saw any type of hardly a benefit this quarter from from rising rates. So we feel pretty good about where the margin is today and as you know relative to our peer group our margin is pretty strong.
And we think we're well positioned for rising rates.
Yep understood.
Helpful. And then just maybe turning to the government.
Lending segment.
Volumes were up most of the last year.
Year over year versus the first quarter of last year.
So I guess, how do you guys kind of thinking about the origination capabilities of your team just given all the.
Market dynamics out there obviously you guys are a big seven day lender in those.
Our floating rate loans I'm not sure if theres any kind of constraints.
Origination capabilities and borrower demand just given what rates have done it over likely to.
Going forward in terms of impacting volumes in 2022.
That's a great question Nate.
We think that the team is doing an excellent job. The volume then grade here to four and you did point out how it increased quarter over last year.
So we really think that the pipeline is very robust right now and it looks good obviously the interest rate environment will play play into.
But you know that the overall outcome.
Outcomes for the year, So we'll see but right now the pipeline is robust and we feel really good about our team's ability to execute and continue producing.
Okay. That's great I appreciate you guys, taking the questions and all the color. Thank you.
Thank you.
Our next question comes from Ben <unk> from Husky great.
Please go ahead.
Good morning, everyone.
Good morning, Brian .
Sure.
I was curious if we could take a minute here to talk about.
Loan growth in general I think.
You said youre going to keep the guidance.
Kind of high single digits.
Is there anything in there.
But maybe these people.
Tapering expectations were good for their own growth from your clients.
I'm thinking about loan growth in general.
To achieve this.
Basically half of your annual outlook are you seeing something.
Gradually slow down dramatically in the next three quarters or is it just conservatism because we have a pretty volatile world.
Well I think the first quarter, we haven't very muted payoffs spend so I think you've got to take that into effect.
In terms of our guidance. So again, yes, it was a fantastic quarter and sometimes the ball bounces, our way with payoffs being muted for a quarter or so.
Again, assuming normalized payoffs as I said in my remarks, we think it'll be at that high single digit number for the year.
I think but then also just to also add to that.
I think.
In terms of kind of.
We don't know yet the impact that rising rates I think it's our sense is that there is going to be an adjustment here.
Over the course of the year as borrowers, particularly on the on the real estate side is where we kind of see probably more potential in the short run as borrowers just adjust to higher rates. The environment has been one which has been very conducive to folks getting you.
Used to operating with.
A rate environment that Barry extremely low rates. So I think the market will adjust we don't really have a good sense of.
But we don't have any view on that we just it's just our expectation and as Lindsey said, we had a phenomenal quarter in terms of pay off activity. It was lower than we expected.
And also remember we're benefiting too from customer activity in the form of line utilization. So every percentage point increase in line utilization certainly helps as it pertains to loan growth. We are not yet at the levels of line utilization that we were at prior to Covid.
We're probably.
Five points below that at this point, it's been trending up nicely and that has certainly contributed to.
Up to the growth that we've been seeing here over the last four quarters.
Okay, Yeah that is.
Helpful.
And then my other question had to do more with the expense guidance.
45% to $47 million or so does that include any.
Upsized hires obviously includes some hires for any sort of normal course of business, but with the Chicago market continuing to be a lot of resumes changing hands.
Cost deals of disruptions.
Does that embedded.
A cushion to allow for additional team members out of Taiwan.
Yeah, It's a great question Ben It does so.
So it does include some newer hires and some that are on the horizon. So as you pointed out it is active out there and lots of resumes being exchanged though.
Yes.
Give us some room for additional hires.
Alright, thanks, guys.
Thank you.
Our next question comes from Terry Mcevoy from Stephens. Please go ahead with your question.
Hi, good morning, everyone.
First off I'll, just reiterate just reiterate what Nathan Thank you for page eight and all the incremental disclosures are very helpful from our side of the table maybe.
Maybe my first question Lindsay I think you just said you expect higher deposit cost later this year, which I think we all on the call would agree with maybe you could just talk about are the larger banks in your market have they've moved rates higher have you had to adjust rates in and I guess, the underlying kind of thesis behind your comments was just expectations.
Rates go higher and at some point the market will change and by line will need to react.
Yeah, Great question Terry in terms of the market right now, we're not really seeing a lot of competition and price adjustments going on at this point in time.
My comments are really obviously with the increased rate environment and things that are to come I think that youll see loan to deposit ratio is really play into that and what ultimately happens and I think the higher the loan to deposit ratio and the faster the deposits I'll start moving up but right now we're definitely seeing that lag.
And we anticipate seeing a lag here for the near future as we head into the remainder of 2022, that's where we think we're going to see some pressure.
Okay, and then back on the.
The lending side I'm, just wondering how do you I would say it was any of the increase in C&I line utilization call. It a temporary building of inventory levels given the world that we haven't that we live in or do you think your clients, we're making serious investments in their business. So I'm just trying to get a sense of the sustainability of the commercial loan growth. We just saw last quarter.
<unk>.
I think it's a combination of both Terry I think certainly the environment you have.
Cost of raw materials.
Going up.
I mean, even with inflation in a lot of our customers being able to pass on to customers in the form of higher prices.
Ultimately finished goods that translates into ultimately higher receivables right for the same number of units. So there is no question that higher inflation plays a part in the sense that inventories are rising as a result of that receivables rise as a result of that but also to the second point.
That you bring up it's also driven by customer activity. So I think it's a combination of both.
Thanks.
And then maybe just one last question.
Could you just talk about the the returns today between M&A and team lift out. So I'm just trying to interpret that that second to last bullet on slide 13, just based on M&A pricing expectations as well as just the cost to bring on new teams.
Team lift outs or view as team lift outs are always and I think in the.
The Paas and I think this is the question that was asked just now is anytime that we have an opportunity to to really attract talented bankers to the organization. We are going to take advantage of it. It's it's just and we think we have a great platform. We think we have a great home for.
<unk> talented bankers to serve clients.
And so I think the answer to add there is that something that we would pursue.
Always not necessarily in lieu of one versus the other so.
We always want to.
To drive organic growth.
You know and team lift outs as something that that we've been able to prove in the past that has translated well for us and for our shareholders.
Great.
Thank you both.
Thank you Terry.
Our next question is from Damon Delmonte with GWG Damon go ahead.
Hey.
Good morning, everyone. Thanks for taking my question.
Congrats on a great quarter by the way.
Just just wanted to.
Get your thoughts on the outlook on credit and kind of how we should be thinking about provision going forward and kind of expectations for net charge offs. So lindsay, hoping you could provide a little color on that.
Sure David in terms of the the outlook.
We remain vigilant so.
We really saw great credit quality this quarter and as you can see by our numbers charge offs went down drastically here during the quarter. So right now the credit environment is great.
As we said in our prepared remarks, we don't think that this is something that will stay forever and so we remain vigilant and we're looking out into the future.
Alberto pointed out in his remarks, Damon that we continue to look at the portfolio for any signs of stress and that's something that we're looking at and on top of but I do think that the provisioning going forward David is going to be a function of loan growth here in the near term. So as we continue to grow we need to provide for that and then we'll keep an eye on asset quality.
And any signs of weakness and make sure that we're well covered there so.
I do think that we'll continue to provision here as we go forward and grow.
And then in terms of charge offs I do think you can look back historically at some point they are going to go back to those historical averages.
Obviously, you didn't see a whole lot this quarter and the credit outlook right now is great but.
We don't anticipate that lasting forever.
Got it great.
Good color. Thank you.
And then just kind of a technical question here, what's your projected effective tax rate going forward.
Great question.
Down this quarter. So we do think it'll go back up to the 25% to 27% range as we've guided historically.
Perfect. Okay, great everything else has been asked and answered so thanks a lot appreciate it.
Great. Thank you.
As a reminder, any any questions. Please press star followed by one on your telephone keypad now.
Our next question comes from Brian Martin from Janney, Brian Your line is open.
Hi, good morning, guys.
Good morning, Brian .
Yes, just maybe one follow up on the loan outlook and maybe just it sounds like obviously, great quarter on the loan growth side and just it sounds like the pipelines are still really strong even though all of the production. This quarter can you just give any.
More granularity on where you where the optimism in that in the pipeline today as you know what what do you expect the growth over the next couple of quarters here based on what the pipeline is showing today.
Understand the comment Lindsay about the payoffs potentially coming but just it sounds like theres still a lot to be optimistic about on the loan growth front.
Yeah, I think Brian I think the pipelines.
On the whole are are good very good.
In terms of what areas I mean, maybe just to give you some some color.
Commercial remains strong I think our SBA pipeline government guaranteed pipeline remains very strong.
Our leasing business has shown.
This quarter grew very nicely.
The pipeline there remains very strong real estate has a good pipeline in relative terms, probably real estate is one that's I think the market as a whole is going through an adjustment you're seeing projects have to grapple with not only higher interest rates.
But also a much higher material costs for projects and I think sponsors are adjusting to that and I think ultimately I think the market will adjust but that's probably where I would in relative terms expect some weakness.
Relative to the others. So hopefully that gives you that gives you some color.
Yeah, No. That's helpful. I appreciate Alberto and maybe just one.
Just on the comments about the sensitivity Lindsay just the deposit betas you guys are thinking about can you give any sense for how you're certainly it sounds like the near term it's not much factor at all but just as you get further down the road, how youre thinking about the deposit betas in that kind of guidance you gave as far as the impact of the rate increases.
Yeah, Brian in terms of betas currently they are lagging.
Near term I think they'll still lag.
Historically, we were kind of between 30% to 35% call. It depending on what you are looking at and timeframe, but.
We look back over the history, and we think that it'll be a little slower this time.
Just given the liquidity that's out there but.
But I did provide in my remarks to an earlier question that I do think it's a function of loan to deposit ratios and as we see those creep up then I think it could speed up so.
It's all of those factors that play right now, Brian So, we'll see what happens but we.
We do think it'll be a little slower.
Gotcha Okay.
Given the deposit flows and how strong they have been.
With rates going up I mean is your expectation that the balance sheet still grows from here or is that a do.
Do you expect some.
Some slowing on the deposit side prospectively.
No I mean, we're always looking to grow deposits, we had a great quarter and showed great growth.
So now the goal is to continue growing deposits and self funding when whenever possible.
Alright, I just didn't know if you are expecting about somebody brought up.
Maybe and you'd never that the organic growth you typically get.
Yeah, I mean, you're always going to have some ebbs and flows, especially with some larger commercial customers, but nothing that I foresee that all.
So I get one way or another.
Yeah, Okay I appreciate it and just one last one just I think earlier call or a question on the M&A.
Would you say that.
M&A environment has slowed at all from a dialogue standpoint, I understand the comments in there.
Certainly your model going forward, but just the dialogue itself has it have you seen the slowdown.
Dialogue I think is very good Brian I think it's it's a lot has changed in the quarter from where we were early January to all of the things that have transpired again, we seem to say this at least once a year, where we have expectations and then.
Sure enough.
Things changed materially, but I think dialogue is as good as yours.
I think the market in general and M&A is not not any different it's just adjusting to all of the things.
That are impacting in the case of M&A impacting stock prices for financials and and just.
The environment as a whole in terms of the outlook for the business.
Yeah, Okay, perfect well, thank you for taking the questions and nice quarter guys.
Thank you Brian .
As you all the questions we have for today, So now I'll turn the call back to Alberto to conclude.
Thank you Emily So that concludes our call for this morning on behalf of all of US here. Thank you for your time today your interest in byline and we look forward again to speaking to you next quarter. Thank you.
Thank you everyone for joining us today. This concludes our call you may now disconnect your lines.
Okay.
Okay.