BY Byline Bancorp Inc

Net income of $28.2 million, $0.65 diluted earnings per share

Byline Bancorp, Inc. (NYSE: BY), today reported:

 

 

For the quarter

 

Third Quarter Highlights

 

 

 

3Q23

 

2Q23

 

3Q222

Financial Results (in thousands)

 

 

 

 

 

 

 

 

 

 

(compared to 2Q23)

Net interest income

 

$

92,452

 

$

76,166

 

$

68,635

 

Completed the acquisition and integration of Inland Bancorp, Inc.

Non-interest income

 

 

12,376

 

 

14,291

 

 

12,043

 

Total Revenue1

 

 

104,828

 

 

90,457

 

 

80,678

 

 

Noninterest expense

 

 

57,891

 

 

49,328

 

 

46,041

 

Top Illinois SBA 7(a) lender for 15th consecutive year

Pre-tax pre-provision net income (PTPP)1

 

 

46,937

 

 

41,129

 

 

34,637

 

Provision for credit losses

 

 

8,803

 

 

5,790

 

 

7,208

 

 

Provision for income taxes

 

 

9,912

 

 

9,232

 

 

7,020

 

Income Statement

Net Income

 

$

28,222

 

$

26,107

 

$

20,409

 

• NIM expanded 14 bps

 

 

 

 

 

 

 

 

 

 

 

 

Per Share

 

 

 

 

 

 

 

 

 

 

• Adjusted net income1 of $33.3 million, or

Diluted EPS

 

$

0.65

 

$

0.70

 

$

0.55

 

$0.77 per adjusted diluted share1

Dividends declared per common share

 

 

0.09

 

 

0.09

 

 

0.09

 

 

Book value

 

 

21.04

 

 

21.58

 

 

19.64

 

• PTPP1 of $46.9 million, increase of 14.1%

Tangible book value per share1

 

 

16.35

 

 

17.43

 

 

15.36

 

 

 

 

 

• Adjusted efficiency ratio1 of 47.35%

Balance Sheet & Credit Quality

 

 

 

 

 

 

 

 

 

 

 

Total loans and leases

 

$

6,620,602

 

$

5,596,512

 

$

5,309,101

 

Balance Sheet

Total deposits

 

 

6,953,690

 

 

5,917,092

 

 

5,612,456

 

• Total assets of $8.9 billion

Net charge-offs

 

 

5,430

 

 

4,267

 

 

1,791

 

 

Allowance for credit losses (ACL) to total loans and

 

 

1.60%

 

 

1.66%

 

 

1.51%

 

• Average total loan and lease growth 17.1%

leases held for investment

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Select Ratios

 

 

 

 

 

 

 

 

 

 

• Average total deposit growth 18.6%

Efficiency ratio1

 

 

53.75%

 

 

52.92%

 

 

55.07%

 

 

Return on average assets (ROAA)

 

 

1.30%

 

 

1.41%

 

 

1.13%

 

• Credit quality metrics in line with

Return on average stockholders' equity

 

 

12.11%

 

 

12.99%

 

 

10.57%

 

expectations; through-the-cycle approach

Return on average tangible common equity1

 

 

16.15%

 

 

16.78%

 

 

14.17%

 

to credit risk management

Net Interest Margin (NIM)

 

 

4.46%

 

 

4.32%

 

 

4.03%

 

 

Tangible common equity to tangible assets1

 

 

8.18%

 

 

8.87%

 

 

8.10%

 

• Regulatory capital ratios remain solid

Common Equity Tier 1

 

 

10.08%

 

 

10.58%

 

 

10.24%

 

 

(1)

Represents non-GAAP financial measures. See “Reconciliation of non-GAAP Financial Measures” for a reconciliation to the most directly comparable GAAP financial measure.

(2)

Recast due to the adoption of ASU 2016-13 Financial Instruments - Credit Losses on December 31, 2022, which was applied retrospectively to January 1, 2022. Refer to our Annual Report on Form 10-K for the year ended December 31, 2022 for additional information on the adoption of the standard.

CEO/President Commentary

 

Roberto R. Herencia, Executive Chairman and CEO of Byline Bancorp, commented, “We successfully completed the core system conversion and integration of our recent acquisition of Inland Bancorp, which we believe has strengthened the return profile of the company. With the expansion of our footprint and the continued execution of our strategic priorities, we see opportunities to leverage our products and services, and deliver enhanced stockholder value for years to come.” Alberto J. Paracchini, President of Byline Bancorp, added, “Adjusted third quarter results were highlighted by robust earnings, strong profitability, net interest margin expansion, solid deposit and loan growth, and controlled expenses. I want to thank our employees, who once again enabled our strong performance through their hard work,” said Mr. Paracchini.

STATEMENTS OF OPERATIONS HIGHLIGHTS

Net Interest Income

Net interest income for the third quarter of 2023 was $92.5 million, an increase of $16.3 million, or 21.4%, from the second quarter of 2023. The increase in net interest income was primarily due to an increase of $26.3 million in interest income and fees on loans and leases due to loans acquired and higher yields; partially offset by an increase of $12.4 million in deposit interest expense due to deposits assumed and higher rates on deposits.

Tax-equivalent net interest margin1 for the third quarter of 2023 was 4.47%, an increase of 14 basis points compared to the second quarter of 2023. Total net loan accretion income impact on the margin contributed 50 basis points to the net interest margin for the third quarter of 2023 compared to three basis points for the second quarter of 2023.

The average cost of total deposits was 2.13% for the third quarter of 2023, an increase of 43 basis points compared to the second quarter of 2023, as a result of higher rates on money market accounts and time deposits. Average non-interest-bearing demand deposits were 28.8% of average total deposits for the third quarter of 2023 compared to 31.7% during the second quarter of 2023.

Provision for Credit Losses

The provision for credit losses was $8.8 million for the third quarter of 2023, an increase of $3.0 million compared to $5.8 million for the second quarter of 2023, mainly attributed to a $2.7 million provision allocated for acquired non-credit-deteriorated loans resulting from acquisition accounting. The provision for credit losses is comprised of a provision for loan and lease losses of $7.9 million and a provision for unfunded commitments of $938,000.

Non-interest Income

Non-interest income for the third quarter of 2023 was $12.4 million, a decrease of $1.9 million, or 13.4%, compared to $14.3 million for the second quarter of 2023. The decrease in total non-interest income was primarily due to a decrease of $2.8 million in the valuation of the loan servicing asset reflecting higher discount rates and higher prepayment rates, partially offset by an increase of $769,000, or 13.5%, in the net gain on sales of loans. During the third quarter of 2023, we sold $101.6 million of U.S. government guaranteed loans compared to $85.9 million during the second quarter of 2023.

Non-interest Expense

Non-interest expense for the third quarter of 2023 was $57.9 million, an increase of $8.6 million, or 17.4%, from $49.3 million for the second quarter of 2023. The increase in total non-interest expense was mainly due to an increase of $5.3 million in salaries and employee benefits and an increase of $2.2 million in data processing, both primarily driven by merger-related expenses.

Our efficiency ratio was 53.75% for the third quarter of 2023 compared to 52.92% for the second quarter of 2023. Excluding significant items, our adjusted efficiency ratio1 for the third quarter 2023 was 47.35%, compared to 51.39% for the second quarter of 2023.

Income Taxes

We recorded income tax expense of $9.9 million during the third quarter of 2023, compared to $9.2 million during the second quarter of 2023. The effective tax rate was 26.0% and 26.1% for the third quarter of 2023 and second quarter of 2023, respectively.

(1)

Represents non-GAAP financial measures. See “Reconciliation of non-GAAP Financial Measures” for a reconciliation of our non-GAAP measures to the most directly comparable GAAP financial measure.

STATEMENTS OF FINANCIAL CONDITION HIGHLIGHTS

Assets

Total assets were $8.9 billion as of September 30, 2023, an increase of $1.4 billion, or 18.1%, compared to $7.6 billion at June 30, 2023.

The current quarter increase was primarily due to an increase in net loans and leases of $1.0 billion mainly due to the acquisition; an increase in securities available-for-sale of $114.2 million, driven by increases in acquired securities; and an increase in cash and cash equivalents of $108.7 million mainly to support loan and lease portfolio growth and customer-related activities.

Non-performing loans and leases were $52.1 million at September 30, 2023, an increase of $13.8 million from $38.3 million at June 30, 2023. The increase was primarily the result of $13.7 million of non-performing acquired purchased credit deteriorated (PCD) loans.

Allowance for Credit Losses ("ACL") - Loans and Leases

ACL was $105.7 million as of September 30, 2023, an increase of $13.0 million, or 14.1%, from $92.7 million at June 30, 2023. The increase includes $10.6 million for PCD loans and a $2.7 million provision for acquired non-credit-deteriorated loans, as a result of the recent acquisition. Additional provision for originated loans and leases and an increase in individually assessed impairments were reduced by net charge-offs.

Net charge-offs of loans and leases during the third quarter of 2023 were $5.4 million, or 0.33% of average loans and leases, on an annualized basis. This was an increase of $1.1 million compared to net charge-offs of $4.3 million, or 0.31% of average loans and leases, during the second quarter of 2023.

Deposits and Other Liabilities

Total deposits increased to $7.0 billion at September 30, 2023 compared to $5.9 billion at June 30, 2023. Non-interest-bearing deposits were 28.2% and 30.3% of total deposits at September 30, 2023 and June 30, 2023, respectively. Estimated total uninsured deposits were $1.8 billion and $1.5 billion as of September 30, 2023 and June 30, 2023, and represented 26.1% and 25.9% of total deposits, respectively. The increase in deposits in the current quarter was mainly due to the deposits assumed and increased deposit campaigns. The increase in time deposits of $327.9 million was principally due to increased personal time deposits. The increase in money market demand accounts of $462.2 million was due to increases in consumer and commercial deposits. The increase in non-interest-bearing demand deposits of $166.1 million was mainly due to increases in assumed commercial deposits.

Total borrowings and other liabilities were $1.1 billion at September 30, 2023, an increase of $225.1 million from $844.7 million at June 30, 2023, primarily driven by increases in Federal Home Loan Bank advances, assumed junior subordinated debentures, accrued expenses and other liabilities.

Stockholders’ Equity

Total stockholders’ equity was $919.9 million at September 30, 2023, an increase of $106.0 million from $813.9 million at June 30, 2023. The increase was primarily due to stock consideration issued in connection with the acquisition.

(1)

Represents non-GAAP financial measures. See “Reconciliation of non-GAAP Financial Measures” for a reconciliation of our non-GAAP measures to the most directly comparable GAAP financial measure.

Conference Call, Webcast and Slide Presentation

We will host a conference call and webcast at 9:00 a.m. Central Time on Friday, October 27, 2023, to discuss our quarterly financial results. Analysts and investors may participate in the question-and-answer session. The call can be accessed via telephone at (833) 470-1428; passcode 719791. A recorded replay can be accessed through November 10, 2023, by dialing (866) 813-9403; passcode: 404695.

A slide presentation relating to our third quarter 2023 results will be accessible prior to the conference call. The slide presentation and webcast of the conference call can be accessed on our investor relations website at www.bylinebancorp.com.

About Byline Bancorp, Inc.

Headquartered in Chicago, Byline Bancorp, Inc. is the parent company of Byline Bank, a full service commercial bank serving small- and medium-sized businesses, financial sponsors, and consumers. Byline Bank has approximately $8.9 billion in assets and operates 48 branch locations throughout the Chicago and Milwaukee metropolitan areas. Byline Bank offers a broad range of commercial and retail banking products and services including small ticket equipment leasing solutions and is one of the top Small Business Administration lenders in the United States.

Forward-Looking Statements

This communication contains forward-looking statements within the meaning of the U.S. federal securities laws. Forward-looking statements include, without limitation, statements concerning plans, estimates, calculations, forecasts and projections with respect to the anticipated future performance of the Company. These statements are often, but not always, made through the use of words or phrases such as ‘‘may’’, ‘‘might’’, ‘‘should’’, ‘‘could’’, ‘‘predict’’, ‘‘potential’’, ‘‘believe’’, ‘‘expect’’, ‘‘continue’’, ‘‘will’’, ‘‘anticipate’’, ‘‘seek’’, ‘‘estimate’’, ‘‘intend’’, ‘‘plan’’, ‘‘projection’’, ‘‘would’’, ‘‘annualized’’, “target” and ‘‘outlook’’, or the negative version of those words or other comparable words or phrases of a future or forward-looking nature. Forward-looking statements involve estimates and known and unknown risks, and reflect various assumptions and involve elements of subjective judgment and analysis, which may or may not prove to be correct, and which are subject to uncertainties and contingencies outside the control of Byline and its respective affiliates, directors, employees and other representatives, which could cause actual results to differ materially from those presented in this communication.

No representations, warranties or guarantees are or will be made by Byline as to the reliability, accuracy or completeness of any forward-looking statements contained in this communication or that such forward-looking statements are or will remain based on reasonable assumptions. You should not place undue reliance on any forward-looking statements contained in this communication.

Certain risks and important factors that could affect Byline’s future results are identified in our Annual Report on Form 10-K and other reports we file with the Securities and Exchange Commission, including among other things under the heading “Risk Factors” in our Annual Report on Form 10-K for the year ended December 31, 2022. Any forward-looking statement speaks only as of the date on which it is made, and Byline undertakes no obligation to update any forward-looking statement, whether to reflect events or circumstances after the date on which the statement is made, to reflect new information or the occurrence of unanticipated events, or otherwise unless required under the federal securities laws.

BYLINE BANCORP, INC. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION (unaudited)

 

 

 

 

 

 

 

 

 

Recast

 

 

 

September 30,

 

 

June 30,

 

 

September 30,

 

(dollars in thousands)

 

2023

 

 

2023

 

 

2022

 

ASSETS

 

 

 

 

 

 

 

 

 

Cash and due from banks

 

$

71,248

 

 

$

59,564

 

 

$

56,546

 

Interest bearing deposits with other banks

 

 

357,640

 

 

 

260,621

 

 

 

159,744

 

Cash and cash equivalents

 

 

428,888

 

 

 

320,185

 

 

 

216,290

 

Equity and other securities, at fair value

 

 

7,902

 

 

 

18,473

 

 

 

7,279

 

Securities available-for-sale, at fair value

 

 

1,239,929

 

 

 

1,125,700

 

 

 

1,181,654

 

Securities held-to-maturity, at amortized cost

 

 

1,157

 

 

 

2,158

 

 

 

3,877

 

Restricted stock, at cost

 

 

30,505

 

 

 

24,377

 

 

 

27,077

 

Loans held for sale

 

 

7,299

 

 

 

25,995

 

 

 

33,975

 

Loans and leases:

 

 

 

 

 

 

 

 

 

Loans and leases

 

 

6,613,303

 

 

 

5,570,517

 

 

 

5,275,126

 

Allowance for credit losses - loans and leases

 

 

(105,696

)

 

 

(92,665

)

 

 

(79,704

)

Net loans and leases

 

 

6,507,607

 

 

 

5,477,852

 

 

 

5,195,422

 

Servicing assets, at fair value

 

 

19,743

 

 

 

21,715

 

 

 

21,127

 

Premises and equipment, net

 

 

67,121

 

 

 

56,304

 

 

 

59,049

 

Other real estate owned, net

 

 

1,671

 

 

 

2,265

 

 

 

4,402

 

Goodwill and other intangible assets, net

 

 

205,028

 

 

 

155,977

 

 

 

160,484

 

Bank-owned life insurance

 

 

96,268

 

 

 

83,222

 

 

 

81,592

 

Deferred tax assets, net

 

 

89,841

 

 

 

66,895

 

 

 

95,831

 

Accrued interest receivable and other assets

 

 

240,409

 

 

 

194,572

 

 

 

179,218

 

Total assets

 

$

8,943,368

 

 

$

7,575,690

 

 

$

7,267,277

 

LIABILITIES AND STOCKHOLDERS’ EQUITY

 

 

 

 

 

 

 

 

 

LIABILITIES

 

 

 

 

 

 

 

 

 

Non-interest-bearing demand deposits

 

$

1,959,855

 

 

$

1,793,749

 

 

$

2,142,183

 

Interest-bearing deposits

 

 

4,993,835

 

 

 

4,123,343

 

 

 

3,470,273

 

Total deposits

 

 

6,953,690

 

 

 

5,917,092

 

 

 

5,612,456

 

Other borrowings

 

 

713,233

 

 

 

574,922

 

 

 

653,954

 

Subordinated notes, net

 

 

73,822

 

 

 

73,778

 

 

 

73,648

 

Junior subordinated debentures issued to capital trusts, net

 

 

70,336

 

 

 

37,557

 

 

 

37,232

 

Accrued expenses and other liabilities

 

 

212,342

 

 

 

158,399

 

 

 

154,182

 

Total liabilities

 

 

8,023,423

 

 

 

6,761,748

 

 

 

6,531,472

 

STOCKHOLDERS’ EQUITY

 

 

 

 

 

 

 

 

 

Common stock

 

 

450

 

 

 

391

 

 

 

389

 

Additional paid-in capital

 

 

708,615

 

 

 

599,718

 

 

 

597,049

 

Retained earnings

 

 

403,368

 

 

 

379,078

 

 

 

314,800

 

Treasury stock

 

 

(50,329

)

 

 

(50,383

)

 

 

(51,535

)

Accumulated other comprehensive loss, net of tax

 

 

(142,159

)

 

 

(114,862

)

 

 

(124,898

)

Total stockholders’ equity

 

 

919,945

 

 

 

813,942

 

 

 

735,805

 

Total liabilities and stockholders’ equity

 

$

8,943,368

 

 

$

7,575,690

 

 

$

7,267,277

 

BYLINE BANCORP, INC. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF OPERATIONS (unaudited)

 

 

 

Three Months Ended

 

 

 

 

 

 

 

 

 

Recast

 

(dollars in thousands,

 

September 30,

 

 

June 30,

 

 

September 30,

 

except per share data)

 

2023

 

 

2023

 

 

2022

 

INTEREST AND DIVIDEND INCOME

 

 

 

 

 

 

 

 

 

Interest and fees on loans and leases

 

$

125,465

 

 

$

99,134

 

 

$

72,635

 

Interest on securities

 

 

8,415

 

 

 

6,559

 

 

 

6,402

 

Other interest and dividend income

 

 

2,710

 

 

 

1,579

 

 

 

626

 

Total interest and dividend income

 

 

136,590

 

 

 

107,272

 

 

 

79,663

 

INTEREST EXPENSE

 

 

 

 

 

 

 

 

 

Deposits

 

 

37,163

 

 

 

24,723

 

 

 

5,971

 

Other borrowings

 

 

3,981

 

 

 

4,241

 

 

 

3,232

 

Subordinated notes and debentures

 

 

2,994

 

 

 

2,142

 

 

 

1,825

 

Total interest expense

 

 

44,138

 

 

 

31,106

 

 

 

11,028

 

Net interest income

 

 

92,452

 

 

 

76,166

 

 

 

68,635

 

PROVISION FOR CREDIT LOSSES

 

 

8,803

 

 

 

5,790

 

 

 

7,208

 

Net interest income after provision for credit losses

 

 

83,649

 

 

 

70,376

 

 

 

61,427

 

NON-INTEREST INCOME

 

 

 

 

 

 

 

 

 

Fees and service charges on deposits

 

 

2,372

 

 

 

2,233

 

 

 

2,128

 

Loan servicing revenue

 

 

3,369

 

 

 

3,377

 

 

 

3,422

 

Loan servicing asset revaluation

 

 

(3,646

)

 

 

(865

)

 

 

(2,342

)

ATM and interchange fees

 

 

1,205

 

 

 

1,112

 

 

 

1,007

 

Net realized losses on securities available-for-sale

 

 

—

 

 

 

—

 

 

 

(2

)

Change in fair value of equity securities, net

 

 

(313

)

 

 

193

 

 

 

(581

)

Net gains on sales of loans

 

 

6,473

 

 

 

5,704

 

 

 

5,580

 

Wealth management and trust income

 

 

939

 

 

 

1,039

 

 

 

995

 

Other non-interest income

 

 

1,977

 

 

 

1,498

 

 

 

1,836

 

Total non-interest income

 

 

12,376

 

 

 

14,291

 

 

 

12,043

 

NON-INTEREST EXPENSE

 

 

 

 

 

 

 

 

 

Salaries and employee benefits

 

 

34,969

 

 

 

29,642

 

 

 

29,587

 

Occupancy and equipment expense, net

 

 

5,314

 

 

 

4,404

 

 

 

3,919

 

Impairment charge on assets held for sale

 

 

 

 

 

—

 

 

 

—

 

Loan and lease related expenses

 

 

836

 

 

 

488

 

 

 

530

 

Legal, audit, and other professional fees

 

 

3,805

 

 

 

3,675

 

 

 

2,733

 

Data processing

 

 

6,472

 

 

 

4,272

 

 

 

3,370

 

Net loss recognized on other real estate owned and other related expenses

 

 

111

 

 

 

288

 

 

 

275

 

Other intangible assets amortization expense

 

 

1,551

 

 

 

1,455

 

 

 

1,611

 

Other non-interest expense

 

 

4,833

 

 

 

5,104

 

 

 

4,016

 

Total non-interest expense

 

 

57,891

 

 

 

49,328

 

 

 

46,041

 

INCOME BEFORE PROVISION FOR INCOME TAXES

 

 

38,134

 

 

 

35,339

 

 

 

27,429

 

PROVISION FOR INCOME TAXES

 

 

9,912

 

 

 

9,232

 

 

 

7,020

 

NET INCOME

 

$

28,222

 

 

$

26,107

 

 

$

20,409

 

EARNINGS PER COMMON SHARE

 

 

 

 

 

 

 

 

 

Basic

 

$

0.66

 

 

$

0.70

 

 

$

0.55

 

Diluted

 

$

0.65

 

 

$

0.70

 

 

$

0.55

 

BYLINE BANCORP, INC. AND SUBSIDIARIES

SELECTED FINANCIAL DATA (unaudited)

 

 

As of or For the Three Months Ended

 

 

 

 

 

 

 

 

Recast

 

(dollars in thousands, except share

September 30,

 

 

June 30,

 

 

September 30,

 

and per share data)

2023

 

 

2023

 

 

2022

 

Earnings per Common Share

 

 

 

 

 

 

 

 

Basic earnings per common share

$

0.66

 

 

$

0.70

 

 

$

0.55

 

Diluted earnings per common share

$

0.65

 

 

$

0.70

 

 

$

0.55

 

Adjusted diluted earnings per common share(1)(3)

$

0.77

 

 

$

0.73

 

 

$

0.55

 

Weighted average common shares outstanding (basic)

 

43,025,927

 

 

 

37,034,626

 

 

 

36,851,973

 

Weighted average common shares outstanding (diluted)

 

43,458,110

 

 

 

37,337,906

 

 

 

37,371,159

 

Common shares outstanding

 

43,719,203

 

 

 

37,752,002

 

 

 

37,465,902

 

Cash dividends per common share

$

0.09

 

 

$

0.09

 

 

$

0.09

 

Dividend payout ratio on common stock

 

13.85

%

 

 

12.86

%

 

 

16.36

%

Tangible book value per common share(1)

$

16.35

 

 

$

17.43

 

 

$

15.36

 

Key Ratios and Performance Metrics (annualized where applicable)

 

 

 

 

 

 

 

 

Net interest margin, fully taxable equivalent (1)(4)

 

4.47

%

 

 

4.33

%

 

 

4.04

%

Average cost of deposits

 

2.13

%

 

 

1.70

%

 

 

0.43

%

Efficiency ratio(1)(2)

 

53.75

%

 

 

52.92

%

 

 

55.07

%

Adjusted efficiency ratio(1)(2)(3)

 

47.35

%

 

 

51.39

%

 

 

55.07

%

Non-interest income to total revenues(1)

 

11.81

%

 

 

15.80

%

 

 

14.93

%

Non-interest expense to average assets

 

2.66

%

 

 

2.67

%

 

 

2.56

%

Adjusted non-interest expense to average assets(1)(3)

 

2.35

%

 

 

2.60

%

 

 

2.56

%

Return on average stockholders' equity

 

12.11

%

 

 

12.99

%

 

 

10.57

%

Adjusted return on average stockholders' equity(1)(3)

 

14.30

%

 

 

13.56

%

 

 

10.57

%

Return on average assets

 

1.30

%

 

 

1.41

%

 

 

1.13

%

Adjusted return on average assets(1)(3)

 

1.53

%

 

 

1.48

%

 

 

1.13

%

Pre-tax pre-provision return on average assets(1)

 

2.16

%

 

 

2.23

%

 

 

1.93

%

Adjusted pre-tax pre-provision return on average assets(1)(3)

 

2.46

%

 

 

2.30

%

 

 

1.93

%

Return on average tangible common stockholders' equity(1)

 

16.15

%

 

 

16.78

%

 

 

14.17

%

Adjusted return on average tangible common stockholders' equity(1)(3)

 

18.95

%

 

 

17.50

%

 

 

14.17

%

Non-interest-bearing deposits to total deposits

 

28.18

%

 

 

30.31

%

 

 

38.17

%

Loans and leases held for sale and loans and lease held for investment to total deposits

 

95.21

%

 

 

94.58

%

 

 

94.59

%

Deposits to total liabilities

 

86.67

%

 

 

87.51

%

 

 

85.93

%

Deposits per branch

$

144,869

 

 

$

155,713

 

 

$

147,696

 

Asset Quality Ratios

 

 

 

 

 

 

 

 

Non-performing loans and leases to total loans and leases held for investment, net before ACL

 

0.79

%

 

 

0.69

%

 

 

0.80

%

ACL to total loans and leases held for investment, net before ACL

 

1.60

%

 

 

1.66

%

 

 

1.51

%

Net charge-offs to average total loans and leases held for investment, net before ACL - loans and leases

 

0.33

%

 

 

0.31

%

 

 

0.14

%

Capital Ratios

 

 

 

 

 

 

 

 

Common equity to total assets

 

10.29

%

 

 

10.74

%

 

 

10.12

%

Tangible common equity to tangible assets(1)

 

8.18

%

 

 

8.87

%

 

 

8.10

%

Leverage ratio

 

10.75

%

 

 

10.74

%

 

 

10.30

%

Common equity tier 1 capital ratio

 

10.08

%

 

 

10.58

%

 

 

10.24

%

Tier 1 capital ratio

 

11.12

%

 

 

11.22

%

 

 

10.91

%

Total capital ratio

 

13.17

%

 

 

13.52

%

 

 

13.02

%

(1)

Represents a non-GAAP financial measure. See “Reconciliation of non-GAAP Financial Measures” for a reconciliation of our non-GAAP measures to the most directly comparable GAAP financial measure.

(2)

Represents non-interest expense less amortization of intangible assets divided by net interest income and non-interest income.

(3)

Calculation excludes merger-related expenses and impairment charges on assts held for sale and ROU assets

(4)

Interest income and rates include the effects of a tax equivalent adjustment to adjust tax exempt investment income on tax exempt investment securities to a fully taxable basis, assuming a federal income tax rate of 21%.

BYLINE BANCORP, INC. AND SUBSIDIARIES

QUARTER-TO-DATE STATEMENT OF AVERAGE INTEREST-EARNING ASSETS AND AVERAGE INTEREST-BEARING LIABILITIES (unaudited)

 

 

For the Three Months Ended

 

 

September 30, 2023

 

 

June 30, 2023

 

 

Recast September 30, 2022

 

(dollars in thousands)

Average Balance(5)

 

 

Interest Inc / Exp

 

 

Avg. Yield / Rate

 

 

Average Balance(5)

 

 

Interest Inc / Exp

 

 

Avg. Yield / Rate

 

 

Average Balance(5)

 

 

Interest Inc / Exp

 

 

Avg. Yield / Rate

 

ASSETS

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cash and cash equivalents

$

195,019

 

 

$

1,724

 

 

 

3.51

%

 

$

135,003

 

 

$

1,041

 

 

 

3.09

%

 

$

77,522

 

 

$

210

 

 

 

1.08

%

Loans and leases(1)

 

6,484,875

 

 

 

125,465

 

 

 

7.68

%

 

 

5,535,593

 

 

 

99,134

 

 

 

7.18

%

 

 

5,217,779

 

 

 

72,635

 

 

 

5.52

%

Taxable securities

 

1,371,979

 

 

 

8,465

 

 

 

2.45

%

 

 

1,250,780

 

 

 

6,324

 

 

 

2.03

%

 

 

1,306,024

 

 

 

5,963

 

 

 

1.81

%

Tax-exempt securities(2)

 

168,805

 

 

 

1,184

 

 

 

2.78

%

 

 

151,205

 

 

 

980

 

 

 

2.60

%

 

 

162,591

 

 

 

1,083

 

 

 

2.64

%

Total interest-earning assets

$

8,220,678

 

 

$

136,838

 

 

 

6.60

%

 

$

7,072,581

 

 

$

107,479

 

 

 

6.10

%

 

$

6,763,916

 

 

$

79,891

 

 

 

4.69

%

Allowance for credit losses - loans and leases

 

(108,315

)

 

 

 

 

 

 

 

 

(92,804

)

 

 

 

 

 

 

 

 

(74,383

)

 

 

 

 

 

 

All other assets

 

521,982

 

 

 

 

 

 

 

 

 

424,122

 

 

 

 

 

 

 

 

 

447,939

 

 

 

 

 

 

 

TOTAL ASSETS

$

8,634,345

 

 

 

 

 

 

 

 

$

7,403,899

 

 

 

 

 

 

 

 

$

7,137,472

 

 

 

 

 

 

 

LIABILITIES AND STOCKHOLDERS’ EQUITY

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Deposits

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest checking

$

579,917

 

 

$

2,208

 

 

 

1.51

%

 

$

541,036

 

 

$

2,175

 

 

 

1.61

%

 

$

583,777

 

 

$

1,077

 

 

 

0.73

%

Money market accounts

 

2,040,476

 

 

 

16,676

 

 

 

3.24

%

 

 

1,534,463

 

 

 

10,799

 

 

 

2.82

%

 

 

1,391,923

 

 

 

3,358

 

 

 

0.96

%

Savings

 

594,555

 

 

 

228

 

 

 

0.15

%

 

 

575,254

 

 

 

220

 

 

 

0.15

%

 

 

673,966

 

 

 

247

 

 

 

0.15

%

Time deposits

 

1,706,531

 

 

 

18,051

 

 

 

4.20

%

 

 

1,328,679

 

 

 

11,529

 

 

 

3.48

%

 

 

687,124

 

 

 

1,289

 

 

 

0.74

%

Total interest-bearing deposits

 

4,921,479

 

 

 

37,163

 

 

 

3.00

%

 

 

3,979,432

 

 

 

24,723

 

 

 

2.49

%

 

 

3,336,790

 

 

 

5,971

 

 

 

0.71

%

Other borrowings

 

463,561

 

 

 

3,981

 

 

 

3.41

%

 

 

509,419

 

 

 

4,241

 

 

 

3.34

%

 

 

607,471

 

 

 

3,232

 

 

 

2.11

%

Subordinated notes and debentures

 

144,171

 

 

 

2,994

 

 

 

8.24

%

 

 

111,255

 

 

 

2,142

 

 

 

7.72

%

 

 

110,799

 

 

 

1,825

 

 

 

6.54

%

Total borrowings

 

607,732

 

 

 

6,975

 

 

 

4.55

%

 

 

620,674

 

 

 

6,383

 

 

 

4.12

%

 

 

718,270

 

 

 

5,057

 

 

 

2.79

%

Total interest-bearing liabilities

$

5,529,211

 

 

$

44,138

 

 

 

3.17

%

 

$

4,600,106

 

 

$

31,106

 

 

 

2.71

%

 

$

4,055,060

 

 

$

11,028

 

 

 

1.08

%

Non-interest-bearing demand deposits

 

1,987,996

 

 

 

 

 

 

 

 

 

1,848,538

 

 

 

 

 

 

 

 

 

2,198,095

 

 

 

 

 

 

 

Other liabilities

 

192,860

 

 

 

 

 

 

 

 

 

148,983

 

 

 

 

 

 

 

 

 

118,496

 

 

 

 

 

 

 

Total stockholders’ equity

 

924,278

 

 

 

 

 

 

 

 

 

806,272

 

 

 

 

 

 

 

 

 

765,821

 

 

 

 

 

 

 

TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY

$

8,634,345

 

 

 

 

 

 

 

 

$

7,403,899

 

 

 

 

 

 

 

 

$

7,137,472

 

 

 

 

 

 

 

Net interest spread(3)

 

 

 

 

 

 

 

3.43

%

 

 

 

 

 

 

 

 

3.39

%

 

 

 

 

 

 

 

 

3.61

%

Net interest income, fully taxable equivalent

 

 

 

$

92,700

 

 

 

 

 

 

 

 

$

76,373

 

 

 

 

 

 

 

 

$

68,863

 

 

 

 

Net interest margin, fully taxable equivalent(2)(4)

 

 

 

 

 

 

 

4.47

%

 

 

 

 

 

 

 

 

4.33

%

 

 

 

 

 

 

 

 

4.04

%

Less: Tax-equivalent adjustment

 

 

 

 

248

 

 

 

0.01

%

 

 

 

 

 

207

 

 

 

0.01

%

 

 

 

 

 

228

 

 

 

0.01

%

Net interest income

 

 

 

$

92,452

 

 

 

 

 

 

 

 

$

76,166

 

 

 

 

 

 

 

 

$

68,635

 

 

 

 

Net interest margin(4)

 

 

 

 

 

 

 

4.46

%

 

 

 

 

 

 

 

 

4.32

%

 

 

 

 

 

 

 

 

4.03

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net loan accretion impact on margin

 

 

 

$

10,276

 

 

 

0.50

%

 

 

 

 

$

611

 

 

 

0.03

%

 

 

 

 

$

1,371

 

 

 

0.08

%

(1)

Loan and lease balances are net of deferred origination fees and costs and initial direct costs. Non-accrual loans and leases are included in total loan and lease balances.

(2)

Interest income and rates include the effects of a tax equivalent adjustment to adjust tax exempt investment income on tax exempt investment securities to a fully taxable basis, assuming a federal income tax rate of 21%.

(3)

Represents the average rate earned on interest-earning assets minus the average rate paid on interest-bearing liabilities.

(4)

Represents net interest income (annualized) divided by total average earning assets.

(5)

Average balances are average daily balances.

BYLINE BANCORP, INC. AND SUBSIDIARIES

SELECTED BALANCE SHEET TABLES AND FINANCIAL RATIOS (unaudited)

 

The following table presents our allocation of originated, purchased credit deteriorated (PCD), and acquired non-credit-deteriorated loans and leases at the dates indicated:

   

 

 

 

 

 

 

 

 

 

 

 

Recast

 

 

 

September 30, 2023

 

 

June 30, 2023

 

 

September 30, 2022

 

(dollars in thousands)

 

Amount

 

 

% of Total

 

 

Amount

 

 

% of Total

 

 

Amount

 

 

% of Total

 

Originated loans and leases

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Commercial real estate

 

$

1,837,531

 

 

 

27.8

%

 

$

1,806,531

 

 

 

32.4

%

 

$

1,659,218

 

 

 

31.5

%

Residential real estate

 

 

454,456

 

 

 

6.9

%

 

 

453,880

 

 

 

8.1

%

 

 

409,926

 

 

 

7.8

%

Construction, land development, and other land

 

 

406,334

 

 

 

6.1

%

 

 

387,623

 

 

 

7.0

%

 

 

456,276

 

 

 

8.5

%

Commercial and industrial

 

 

2,286,058

 

 

 

34.6

%

 

 

2,086,274

 

 

 

37.4

%

 

 

1,940,236

 

 

 

36.8

%

Installment and other

 

 

2,968

 

 

 

0.0

%

 

 

3,582

 

 

 

0.1

%

 

 

999

 

 

 

0.0

%

Leasing financing receivables

 

 

641,032

 

 

 

9.7

%

 

 

604,437

 

 

 

10.9

%

 

 

492,744

 

 

 

9.3

%

Total originated loans and leases

 

$

5,628,379

 

 

 

85.1

%

 

$

5,342,327

 

 

 

95.9

%

 

$

4,959,399

 

 

 

94.0

%

Purchased credit deteriorated loans

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Commercial real estate

 

$

154,573

 

 

 

2.3

%

 

$

30,724

 

 

 

0.6

%

 

$

49,649

 

 

 

0.9

%

Residential real estate

 

 

47,485

 

 

 

0.7

%

 

 

26,012

 

 

 

0.5

%

 

 

35,309

 

 

 

0.7

%

Construction, land development, and other land

 

 

29,587

 

 

 

0.5

%

 

 

320

 

 

 

0.0

%

 

 

1,131

 

 

 

0.0

%

Commercial and industrial

 

 

21,014

 

 

 

0.3

%

 

 

1,726

 

 

 

0.0

%

 

 

2,345

 

 

 

0.1

%

Installment and other

 

 

125

 

 

 

0.0

%

 

 

129

 

 

 

0.0

%

 

 

149

 

 

 

0.0

%

Total purchased credit deteriorated loans

 

$

252,784

 

 

 

3.8

%

 

$

58,911

 

 

 

1.1

%

 

$

88,583

 

 

 

1.7

%

Acquired non-credit-deteriorated loans and leases

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Commercial real estate

 

$

296,656

 

 

 

4.5

%

 

$

126,191

 

 

 

2.3

%

 

$

159,928

 

 

 

3.0

%

Residential real estate

 

 

220,091

 

 

 

3.4

%

 

 

25,055

 

 

 

0.4

%

 

 

36,480

 

 

 

0.7

%

Construction, land development, and other land

 

 

87,087

 

 

 

1.3

%

 

 

—

 

 

 

0.0

%

 

 

187

 

 

 

0.0

%

Commercial and industrial

 

 

127,253

 

 

 

1.9

%

 

 

16,750

 

 

 

0.3

%

 

 

27,249

 

 

 

0.5

%

Installment and other

 

 

153

 

 

 

0.0

%

 

 

25

 

 

 

0.0

%

 

 

216

 

 

 

0.0

%

Leasing financing receivables

 

 

900

 

 

 

0.0

%

 

 

1,258

 

 

 

0.0

%

 

 

3,084

 

 

 

0.1

%

Total acquired non-credit-deteriorated loans and leases

 

$

732,140

 

 

 

11.1

%

 

$

169,279

 

 

 

3.0

%

 

$

227,144

 

 

 

4.3

%

Total loans and leases

 

$

6,613,303

 

 

 

100.0

%

 

$

5,570,517

 

 

 

100.0

%

 

$

5,275,126

 

 

 

100.0

%

Allowance for credit losses - loans and leases

 

 

(105,696

)

 

 

 

 

 

(92,665

)

 

 

 

 

 

(79,704

)

 

 

 

Total loans and leases, net of allowance for credit losses - loans and leases

 

$

6,507,607

 

 

 

 

 

$

5,477,852

 

 

 

 

 

$

5,195,422

 

 

 

 

The following table presents the balance and activity within the allowance for credit losses - loans and lease for the periods indicated:

 

 

Three Months Ended

 

 

 

 

 

 

 

 

 

Recast

 

 

 

September 30,

 

 

June 30,

 

 

September 30,

 

(dollars in thousands)

 

2023

 

 

2023

 

 

2022

 

ACL - loans and leases, beginning of period

 

$

92,665

 

 

$

90,465

 

 

$

74,048

 

Adjustment for acquired PCD loans

 

 

10,596

 

 

 

—

 

 

 

—

 

Provision for credit losses - loans and leases

 

 

7,865

 

 

 

6,467

 

 

 

7,447

 

Net charge-offs - loans and leases

 

 

(5,430

)

 

 

(4,267

)

 

 

(1,791

)

ACL - loans and leases, end of period

 

$

105,696

 

 

$

92,665

 

 

$

79,704

 

Net charge-offs - loans and leases to average total loans and leases held for investment, net before ACL

 

 

0.33

%

 

 

0.31

%

 

 

0.14

%

Provision for credit losses - loans and leases to net charge-offs - loans and leases during the period

 

 

1.45

x

 

 

1.52

x

 

 

4.16

x

BYLINE BANCORP, INC. AND SUBSIDIARIES

SELECTED BALANCE SHEET TABLES AND FINANCIAL RATIOS (unaudited)

 

The following table presents the amounts of non-performing loans and leases and other real estate owned at the date indicated:

   

 

 

 

 

 

 

 

 

 

 

 

September 30, 2023

 

 

 

 

 

 

 

 

 

Recast

 

 

Change from

 

(dollars in thousands)

 

September 30, 2023

 

 

June 30, 2023

 

 

September 30, 2022

 

 

June 30, 2023

 

 

September 30, 2022

 

Non-performing assets:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Non-accrual loans and leases

 

$

52,070

 

 

$

38,273

 

 

$

41,942

 

 

 

36.0

%

 

 

24.1

%

Past due loans and leases 90 days or more and still accruing interest

 

 

—

 

 

 

—

 

 

 

—

 

 

—%

 

 

—%

 

Total non-performing loans and leases

 

$

52,070

 

 

$

38,273

 

 

$

41,942

 

 

 

36.0

%

 

 

24.1

%

Other real estate owned

 

 

1,671

 

 

 

2,265

 

 

 

4,402

 

 

 

(26.2

)%

 

 

(62.0

)%

Total non-performing assets

 

$

53,741

 

 

$

40,538

 

 

$

46,344

 

 

 

32.6

%

 

 

16.0

%

Total non-performing loans and leases as a percentage of total loans and leases

 

 

0.79

%

 

 

0.69

%

 

 

0.80

%

 

 

 

 

 

 

Total non-performing assets as a percentage of total assets

 

 

0.60

%

 

 

0.54

%

 

 

0.64

%

 

 

 

 

 

 

Allowance for credit losses - loans and lease as a percentage of non-performing loans and leases

 

 

202.99

%

 

 

242.12

%

 

 

190.03

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Non-performing assets guaranteed by U.S. government:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Non-accrual loans guaranteed

 

$

3,588

 

 

$

2,472

 

 

$

1,676

 

 

 

45.1

%

 

 

114.1

%

Past due loans 90 days or more and still accruing interest guaranteed

 

 

—

 

 

 

—

 

 

 

—

 

 

—%

 

 

—%

 

Total non-performing loans guaranteed

 

$

3,588

 

 

$

2,472

 

 

$

1,676

 

 

 

45.1

%

 

 

114.1

%

Total non-performing loans and leases not guaranteed as a percentage of total loans and leases

 

 

0.73

%

 

 

0.64

%

 

 

0.76

%

 

 

 

 

 

 

Total non-performing assets not guaranteed as a percentage of total assets

 

 

0.56

%

 

 

0.50

%

 

 

0.61

%

 

 

 

 

 

 

The following table presents the composition of deposits at the dates indicated:

 

 

 

 

 

 

 

 

 

 

September 30, 2023

 

 

 

 

 

 

 

 

 

 

 

Change from

 

(dollars in thousands)

September 30, 2023

 

 

June 30, 2023

 

 

September 30, 2022

 

 

June 30, 2023

 

 

September 30, 2022

 

Non-interest-bearing demand deposits

$

1,959,855

 

 

$

1,793,749

 

 

$

2,142,183

 

 

 

9.3

%

 

 

(8.5

)%

Interest-bearing checking accounts

 

592,771

 

 

 

530,775

 

 

 

616,139

 

 

 

11.7

%

 

 

(3.8

)%

Money market demand accounts

 

2,062,252

 

 

 

1,600,043

 

 

 

1,485,815

 

 

 

28.9

%

 

 

38.8

%

Other savings

 

581,073

 

 

 

562,706

 

 

 

669,734

 

 

 

3.3

%

 

 

(13.2

)%

Time deposits (below $250,000)

 

1,446,485

 

 

 

1,214,717

 

 

 

586,198

 

 

 

19.1

%

 

 

146.8

%

Time deposits ($250,000 and above)

 

311,254

 

 

 

215,102

 

 

 

112,387

 

 

 

44.7

%

 

 

176.9

%

Total deposits

$

6,953,690

 

 

$

5,917,092

 

 

$

5,612,456

 

 

 

17.5

%

 

 

23.9

%

BYLINE BANCORP, INC. AND SUBSIDIARIES RECONCILIATION OF NON-GAAP FINANCIAL MEASURES (unaudited)

Non-GAAP Financial Measures

This release contains certain financial information determined by methods other than in accordance with accounting principles generally accepted in the United States of America (“GAAP”). These measures include adjusted net income, adjusted diluted earnings per share, adjusted efficiency ratio, adjusted non-interest expense to average assets, tax-equivalent net interest margin, total revenue, non-interest income to total revenues, adjusted return on average stockholders’ equity, adjusted return on average assets, pre-tax pre-provision return on average assets, adjusted pre-tax pre-provision return on average assets, tangible book value per common share, tangible common equity to tangible assets, return on average tangible common stockholders' equity, and adjusted return on average tangible common stockholders' equity. Management believes that these non-GAAP financial measures provide useful information to management and investors that is supplementary to the Company’s financial condition, results of operations and cash flows computed in accordance with GAAP; however, management acknowledges that our non-GAAP financial measures have a number of limitations. As such, these disclosures should not be viewed as a substitute for results determined in accordance with GAAP financial measures that we and other companies use. Management also uses these measures for peer comparison. See below in the financial schedules included in this press release for a reconciliation of the non-GAAP financial measures to the comparable GAAP financial measures. Additionally, please refer to the Company’s Annual Report on Form 10-K for the detailed definitions of these non-GAAP financial measures.

 

 

As of or For the Three Months Ended

 

 

 

 

 

 

 

 

 

 

Recast

 

 

 

 

September 30,

 

 

June 30,

 

 

September 30,

 

 

(dollars in thousands, except per share data)

 

2023

 

 

2023

 

 

2022

 

 

Net income and earnings per share excluding significant items

 

 

 

 

 

 

 

 

 

 

Reported Net Income

 

$

28,222

 

 

$

26,107

 

 

$

20,409

 

 

Significant items:

 

 

 

 

 

 

 

 

 

 

Impairment charges on ROU assets

 

 

394

 

 

 

—

 

 

 

—

 

 

Merger-related expenses

 

 

6,307

 

 

 

1,391

 

 

 

—

 

 

Tax benefit

 

 

(1,617

)

 

 

(230

)

 

 

—

 

 

Adjusted Net Income

 

$

33,306

 

 

$

27,268

 

 

$

20,409

 

 

Reported Diluted Earnings per Share

 

$

0.65

 

 

$

0.70

 

 

$

0.55

 

 

Significant items:

 

 

 

 

 

 

 

 

 

 

Impairment charges on ROU assets

 

 

0.01

 

 

 

—

 

 

 

—

 

 

Merger-related expenses

 

 

0.15

 

 

 

0.04

 

 

 

—

 

 

Tax benefit

 

 

(0.04

)

 

 

(0.01

)

 

 

—

 

 

Adjusted Diluted Earnings per Share

 

$

0.77

 

 

$

0.73

 

 

$

0.55

 

 

BYLINE BANCORP, INC. AND SUBSIDIARIES

RECONCILIATION OF NON-GAAP FINANCIAL MEASURES (continued) (unaudited)

   

 

 

As of or For the Three Months Ended

 

 

 

 

 

 

 

 

 

Recast

 

(dollars in thousands, except per share data,

 

September 30,

 

 

June 30,

 

 

September 30,

 

ratios annualized, where applicable)

 

2023

 

 

2023

 

 

2022

 

Adjusted non-interest expense:

 

 

 

 

 

 

 

 

 

Non-interest expense

 

$

57,891

 

 

$

49,328

 

 

$

46,041

 

Less: Significant items

 

 

 

 

 

 

 

 

 

Impairment charges on ROU assets

 

 

394

 

 

 

—

 

 

 

—

 

Merger-related expenses

 

 

6,307

 

 

 

1,391

 

 

 

—

 

Adjusted non-interest expense

 

$

51,190

 

 

$

47,937

 

 

$

46,041

 

Adjusted non-interest expense excluding amortization of intangible assets:

 

 

 

 

 

 

 

 

 

Adjusted non-interest expense

 

$

51,190

 

 

$

47,937

 

 

$

46,041

 

Less: Amortization of intangible assets

 

 

1,551

 

 

 

1,455

 

 

 

1,611

 

Adjusted non-interest expense excluding amortization of intangible assets

 

$

49,639

 

 

$

46,482

 

 

$

44,430

 

Pre-tax pre-provision net income:

 

 

 

 

 

 

 

 

 

Pre-tax income

 

$

38,134

 

 

$

35,339

 

 

$

27,429

 

Add: Provision for credit losses

 

 

8,803

 

 

 

5,790

 

 

 

7,208

 

Pre-tax pre-provision net income

 

$

46,937

 

 

$

41,129

 

 

$

34,637

 

Adjusted pre-tax pre-provision net income:

 

 

 

 

 

 

 

 

 

Pre-tax pre-provision net income

 

$

46,937

 

 

$

41,129

 

 

$

34,637

 

Add: Impairment charges on ROU assets

 

 

394

 

 

 

—

 

 

 

—

 

Add: Merger-related expenses

 

 

6,307

 

 

 

1,391

 

 

 

—

 

Adjusted pre-tax pre-provision net income

 

$

53,638

 

 

$

42,520

 

 

$

34,637

 

Tax equivalent net interest income

 

 

 

 

 

 

 

 

 

Net interest income

 

$

92,452

 

 

$

76,166

 

 

$

68,635

 

Add: Tax-equivalent adjustment

 

 

248

 

 

 

207

 

 

 

228

 

Net interest income, fully taxable equivalent

 

$

92,700

 

 

$

76,373

 

 

$

68,863

 

Total revenue:

 

 

 

 

 

 

 

 

 

Net interest income

 

$

92,452

 

 

$

76,166

 

 

$

68,635

 

Add: Non-interest income

 

 

12,376

 

 

 

14,291

 

 

 

12,043

 

Total revenue

 

$

104,828

 

 

$

90,457

 

 

$

80,678

 

Tangible common stockholders' equity:

 

 

 

 

 

 

 

 

 

Total stockholders' equity

 

$

919,945

 

 

$

813,942

 

 

$

735,805

 

Less: Goodwill and other intangibles

 

 

205,028

 

 

 

155,977

 

 

 

160,484

 

Tangible common stockholders' equity

 

$

714,917

 

 

$

657,965

 

 

$

575,321

 

Tangible assets:

 

 

 

 

 

 

 

 

 

Total assets

 

$

8,943,368

 

 

$

7,575,690

 

 

$

7,267,277

 

Less: Goodwill and other intangibles

 

 

205,028

 

 

 

155,977

 

 

 

160,484

 

Tangible assets

 

$

8,738,340

 

 

$

7,419,713

 

 

$

7,106,793

 

Average tangible common stockholders' equity:

 

 

 

 

 

 

 

 

 

Average total stockholders' equity

 

$

924,278

 

 

$

806,272

 

 

$

765,821

 

Less: Average goodwill and other intangibles

 

 

202,978

 

 

 

156,766

 

 

 

161,292

 

Average tangible common stockholders' equity

 

$

721,300

 

 

$

649,506

 

 

$

604,529

 

Average tangible assets:

 

 

 

 

 

 

 

 

 

Average total assets

 

$

8,634,345

 

 

$

7,403,899

 

 

$

7,137,472

 

Less: Average goodwill and other intangibles

 

 

202,978

 

 

 

156,766

 

 

 

161,292

 

Average tangible assets

 

$

8,431,367

 

 

$

7,247,133

 

 

$

6,976,180

 

Tangible net income available to common stockholders:

 

 

 

 

 

 

 

 

 

Net income available to common stockholders

 

$

28,222

 

 

$

26,107

 

 

$

20,409

 

Add: After-tax intangible asset amortization

 

 

1,137

 

 

 

1,067

 

 

 

1,181

 

Tangible net income available to common stockholders

 

$

29,359

 

 

$

27,174

 

 

$

21,590

 

Adjusted tangible net income available to common stockholders:

 

 

 

 

 

 

 

 

 

Tangible net income available to common stockholders

 

$

29,359

 

 

$

27,174

 

 

$

21,590

 

Impairment charges on ROU assets

 

 

394

 

 

 

—

 

 

 

—

 

Merger-related expenses

 

 

6,307

 

 

 

1,391

 

 

 

—

 

Tax benefit on significant items

 

 

(1,617

)

 

 

(230

)

 

 

—

 

Adjusted tangible net income available to common stockholders

 

$

34,443

 

 

$

28,335

 

 

$

21,590

 

BYLINE BANCORP, INC. AND SUBSIDIARIES

RECONCILIATION OF NON-GAAP FINANCIAL MEASURES (continued) (unaudited)

   

 

 

As of or For the Three Months Ended

 

 

 

 

 

 

 

 

 

Recast

 

(dollars in thousands, except share and per share

 

September 30,

 

 

June 30,

 

 

September 30,

 

data, ratios annualized, where applicable)

 

2023

 

 

2023

 

 

2022

 

Pre-tax pre-provision return on average assets:

 

 

 

 

 

 

 

 

 

Pre-tax pre-provision net income

 

$

46,937

 

 

$

41,129

 

 

$

34,637

 

Average total assets

 

 

8,634,345

 

 

 

7,403,899

 

 

 

7,137,472

 

Pre-tax pre-provision return on average assets

 

 

2.16

%

 

 

2.23

%

 

 

1.93

%

Adjusted pre-tax pre-provision return on average assets:

 

 

 

 

 

 

 

 

 

Adjusted pre-tax pre-provision net income

 

$

53,638

 

 

$

42,520

 

 

$

34,637

 

Average total assets

 

 

8,634,345

 

 

 

7,403,899

 

 

 

7,137,472

 

Adjusted pre-tax pre-provision return on average assets

 

 

2.46

%

 

 

2.30

%

 

 

1.93

%

Net interest margin, fully taxable equivalent

 

 

 

 

 

 

 

 

 

Net interest income, fully taxable equivalent

 

$

92,700

 

 

$

76,373

 

 

$

68,863

 

Total average interest-earning assets

 

 

8,220,678

 

 

 

7,072,581

 

 

 

6,763,916

 

Net interest margin, fully taxable equivalent

 

 

4.47

%

 

 

4.33

%

 

 

4.04

%

Non-interest income to total revenues:

 

 

 

 

 

 

 

 

 

Non-interest income

 

$

12,376

 

 

$

14,291

 

 

$

12,043

 

Total revenues

 

 

104,828

 

 

 

90,457

 

 

 

80,678

 

Non-interest income to total revenues

 

 

11.81

%

 

 

15.80

%

 

 

14.93

%

Adjusted non-interest expense to average assets:

 

 

 

 

 

 

 

 

 

Adjusted non-interest expense

 

$

51,190

 

 

$

47,937

 

 

$

46,041

 

Average total assets

 

 

8,634,345

 

 

 

7,403,899

 

 

 

7,137,472

 

Adjusted non-interest expense to average assets

 

 

2.35

%

 

 

2.60

%

 

 

2.56

%

Adjusted efficiency ratio:

 

 

 

 

 

 

 

 

 

Adjusted non-interest expense excluding amortization of intangible assets

 

$

49,639

 

 

$

46,482

 

 

$

44,430

 

Total revenues

 

 

104,828

 

 

 

90,457

 

 

 

80,678

 

Adjusted efficiency ratio

 

 

47.35

%

 

 

51.39

%

 

 

55.07

%

Adjusted return on average assets:

 

 

 

 

 

 

 

 

 

Adjusted net income

 

$

33,306

 

 

$

27,268

 

 

$

20,409

 

Average total assets

 

 

8,634,345

 

 

 

7,403,899

 

 

 

7,137,472

 

Adjusted return on average assets

 

 

1.53

%

 

 

1.48

%

 

 

1.13

%

Adjusted return on average stockholders' equity:

 

 

 

 

 

 

 

 

 

Adjusted net income

 

$

33,306

 

 

$

27,268

 

 

$

20,409

 

Average stockholders' equity

 

 

924,278

 

 

 

806,272

 

 

 

765,821

 

Adjusted return on average stockholders' equity

 

 

14.30

%

 

 

13.56

%

 

 

10.57

%

Tangible common equity to tangible assets:

 

 

 

 

 

 

 

 

 

Tangible common equity

 

$

714,917

 

 

$

657,965

 

 

$

575,321

 

Tangible assets

 

 

8,738,340

 

 

 

7,419,713

 

 

 

7,106,793

 

Tangible common equity to tangible assets

 

 

8.18

%

 

 

8.87

%

 

 

8.10

%

Return on average tangible common stockholders' equity:

 

 

 

 

 

 

 

 

 

Tangible net income available to common stockholders

 

$

29,359

 

 

$

27,174

 

 

$

21,590

 

Average tangible common stockholders' equity

 

 

721,300

 

 

 

649,506

 

 

 

604,529

 

Return on average tangible common stockholders' equity

 

 

16.15

%

 

 

16.78

%

 

 

14.17

%

Adjusted return on average tangible common stockholders' equity:

 

 

 

 

 

 

 

 

 

Adjusted tangible net income available to common stockholders

 

$

34,443

 

 

$

28,335

 

 

$

21,590

 

Average tangible common stockholders' equity

 

 

721,300

 

 

 

649,506

 

 

 

604,529

 

Adjusted return on average tangible common stockholders' equity

 

 

18.95

%

 

 

17.50

%

 

 

14.17

%

Tangible book value per share:

 

 

 

 

 

 

 

 

 

Tangible common equity

 

$

714,917

 

 

$

657,965

 

 

$

575,321

 

Common shares outstanding

 

 

43,719,203

 

 

 

37,752,002

 

 

 

37,465,902

 

Tangible book value per share

 

$

16.35

 

 

$

17.43

 

 

$

15.36

 

 

View source version on businesswire.com: https://www.businesswire.com/news/home/20231026092197/en/

Investors/Media: Brooks Rennie Investor Relations Director 312-660-5805 brennie@bylinebank.com