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Share Name | Share Symbol | Market | Type |
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Byline Bancorp Inc | NYSE:BY | NYSE | Common Stock |
Price Change | % Change | Share Price | High Price | Low Price | Open Price | Shares Traded | Last Trade | |
---|---|---|---|---|---|---|---|---|
0.40 | 1.39% | 29.12 | 29.49 | 28.53 | 29.47 | 266,897 | 22:36:13 |
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM
CURRENT REPORT
PURSUANT TO SECTION 13 OR 15(d)
OF THE SECURITIES EXCHANGE ACT OF 1934
Date of Report (Date of earliest event reported):
(Exact Name of Registrant as Specified in Its Charter)
(State or Other Jurisdiction
of Incorporation)
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(Commission File Number) |
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(I.R.S. Employer Identification No.) |
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(Address of Principal Executive Offices) |
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(Zip Code) |
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(Registrant’s Telephone Number, Including Area Code)
Not Applicable
(Former Name or Former Address, if Changed Since Last Report)
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):
Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) |
Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) |
Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) |
Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) |
Securities registered pursuant to Section 12(b) of the Act:
Title of each class |
Trading Symbol(s) |
Name of each exchange on which registered |
Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).
Emerging growth company
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐
Item 2.02. |
Results of Operations and Financial Condition. |
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On July 27, 2023, Byline Bancorp, Inc., (“Byline" or the "Company”) issued a press release announcing its financial results for the second quarter ended June 30, 2023. A copy of the press release is attached as Exhibit 99.1 and is incorporated herein by reference.
On July 27, 2023, the Company made available on its website a slide presentation regarding the Company’s second quarter 2023 financial results, which will be used as part of a publicly accessible conference call on July 28, 2023. A copy of the slide presentation is attached as Exhibit 99.2 and is incorporated herein by reference.
The information included in Item 2.02 this Current Report on Form 8-K (including the information in the attached exhibits 99.1 and 99.2) is being furnished and shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended, nor shall it be deemed incorporated by reference in any filing under the Securities Act of 1933, as amended, except as shall be expressly set forth by specific reference in any such filing.
Item 9.01. |
Financial Statements and Exhibits. |
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(d) Exhibits.
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Exhibit No. |
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Description |
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99.1 |
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Second Quarter 2023 financial results press release, dated July 27, 2023 |
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99.2 |
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Slide Presentation regarding second quarter 2023 financial results |
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104 |
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Cover Page Interactive Data File (embedded within the Inline XBRL document) |
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 judgement 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.
2
SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934, as amended, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
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BYLINE BANCORP, INC. |
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Date: July 27, 2023 |
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By: |
/s/ Roberto R. Herencia |
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Name: |
Roberto R. Herencia |
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Title: |
Executive Chairman and Chief Executive Officer |
3
Exhibit 99.1
Byline Bancorp, Inc. Reports Second Quarter 2023 Financial Results
Select Second Quarter 2023 Financial Highlights
Chicago, IL, July 27, 2023 – Byline Bancorp, Inc. ("Byline", the “Company”, "we", "our", or "us") (NYSE: BY), the parent company of Byline Bank (the “Bank”), today reported net income of $26.1 million, or $0.70 per diluted share, for the second quarter of 2023 compared with net income of $23.9 million, or $0.64 per diluted share, for the first quarter of 2023, and net income of $21.8 million2, or $0.58 per diluted share, for the second quarter 2022.
Roberto R. Herencia, Executive Chairman and Chief Executive Officer of Byline Bancorp, Inc., commented, “We reported solid results for the second quarter and continued to execute our time tested strategy well. Notwithstanding the challenging operating environment, our business units continued to perform well and we have good momentum heading into the second half of the year.”
Alberto J. Paracchini, President of Byline Bancorp, Inc. added, “We delivered record earnings, strong profitability, balanced deposit and loan growth and solid credit quality. Our strong capital and liquidity levels position us well to continue to prudently grow our franchise.”
Board Declares Cash Dividend of $0.09 per Share
On July 25, 2023, the Company's Board of Directors declared a cash dividend of $0.09 per share, payable on August 22, 2023, to stockholders of record of the Company's common stock as of August 8, 2023.
Inland Acquisition
On July 1, 2023, Byline completed its acquisition of Inland Bancorp, Inc. ("Inland Bancorp") to solidify Byline's position as Chicago's largest community bank. The transaction brings Byline’s combined total assets to approximately $8.8 billion, $6.4 billion in loans and $6.9 billion in deposits, with 47 branches across the greater Chicago metropolitan area, based on information as of June 30, 2023.
Byline Bancorp, Inc.
Page 2 of 17
STATEMENTS OF OPERATIONS
Net Interest Income
The following table presents the average interest-earning assets and average interest-bearing liabilities for the periods indicated. Net interest income and margin are adjusted to reflect tax-exempt interest income on a tax-equivalent basis using tax rates effective as of the end of the period:
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For the Three Months Ended |
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June 30, 2023 |
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March 31, 2023 |
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Recast June 30, 2022 |
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(dollars in thousands) |
Average |
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Interest |
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Avg. |
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Average |
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Interest |
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Avg. |
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Average |
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Interest |
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Avg. |
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ASSETS |
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Cash and cash equivalents |
$ |
135,003 |
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$ |
1,041 |
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3.09 |
% |
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$ |
97,578 |
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$ |
442 |
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1.84 |
% |
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$ |
66,034 |
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$ |
74 |
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0.45 |
% |
Loans and leases(1) |
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5,535,593 |
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99,134 |
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7.18 |
% |
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5,484,372 |
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92,343 |
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6.83 |
% |
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5,007,615 |
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59,919 |
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4.80 |
% |
Taxable securities |
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1,250,780 |
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6,324 |
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2.03 |
% |
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1,275,377 |
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6,431 |
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2.04 |
% |
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1,331,136 |
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5,792 |
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1.75 |
% |
Tax-exempt securities(2) |
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151,205 |
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980 |
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2.60 |
% |
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151,817 |
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994 |
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2.65 |
% |
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168,567 |
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1,131 |
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2.69 |
% |
Total interest-earning assets |
$ |
7,072,581 |
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$ |
107,479 |
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6.10 |
% |
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$ |
7,009,144 |
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$ |
100,210 |
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5.80 |
% |
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$ |
6,573,352 |
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$ |
66,916 |
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4.08 |
% |
Allowance for credit losses - |
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(92,804 |
) |
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(84,321 |
) |
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(72,521 |
) |
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All other assets |
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424,122 |
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420,328 |
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465,733 |
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TOTAL ASSETS |
$ |
7,403,899 |
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$ |
7,345,151 |
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$ |
6,966,564 |
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LIABILITIES AND STOCKHOLDERS’ |
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Deposits |
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Interest checking |
$ |
541,036 |
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$ |
2,175 |
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1.61 |
% |
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$ |
606,008 |
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$ |
2,494 |
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1.67 |
% |
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$ |
615,831 |
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$ |
415 |
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0.27 |
% |
Money market accounts |
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1,534,463 |
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10,799 |
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2.82 |
% |
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1,465,677 |
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7,728 |
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2.14 |
% |
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1,307,320 |
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1,194 |
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0.37 |
% |
Savings |
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575,254 |
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220 |
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0.15 |
% |
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613,590 |
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227 |
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0.15 |
% |
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664,954 |
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83 |
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0.05 |
% |
Time deposits |
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1,328,679 |
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11,529 |
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3.48 |
% |
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966,409 |
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5,849 |
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2.45 |
% |
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627,199 |
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436 |
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0.28 |
% |
Total interest-bearing |
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3,979,432 |
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24,723 |
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2.49 |
% |
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3,651,684 |
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16,298 |
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1.81 |
% |
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3,215,304 |
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2,128 |
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0.27 |
% |
Other borrowings |
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509,419 |
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4,241 |
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3.34 |
% |
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573,433 |
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5,852 |
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4.14 |
% |
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|
497,082 |
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1,083 |
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0.87 |
% |
Federal funds purchased |
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— |
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— |
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0.00 |
% |
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2,778 |
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36 |
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5.30 |
% |
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|
2,527 |
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|
14 |
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2.32 |
% |
Subordinated notes and |
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111,255 |
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|
2,142 |
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7.72 |
% |
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|
111,101 |
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|
|
2,098 |
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7.66 |
% |
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|
110,649 |
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|
|
1,694 |
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|
6.14 |
% |
Total borrowings |
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620,674 |
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6,383 |
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4.12 |
% |
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|
687,312 |
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|
7,986 |
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4.71 |
% |
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|
610,258 |
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|
2,791 |
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1.83 |
% |
Total interest-bearing liabilities |
$ |
4,600,106 |
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$ |
31,106 |
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2.71 |
% |
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$ |
4,338,996 |
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$ |
24,284 |
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2.27 |
% |
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$ |
3,825,562 |
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$ |
4,919 |
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0.52 |
% |
Non-interest-bearing |
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1,848,538 |
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2,076,613 |
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2,265,426 |
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||||||
Other liabilities |
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148,983 |
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145,253 |
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105,918 |
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Total stockholders’ equity |
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806,272 |
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784,289 |
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769,658 |
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TOTAL LIABILITIES AND |
$ |
7,403,899 |
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$ |
7,345,151 |
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$ |
6,966,564 |
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Net interest spread(3) |
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3.39 |
% |
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3.53 |
% |
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3.56 |
% |
||||||
Net interest income, fully |
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$ |
76,373 |
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$ |
75,926 |
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$ |
61,997 |
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Net interest margin, fully |
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4.33 |
% |
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4.39 |
% |
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3.78 |
% |
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Less: Tax-equivalent adjustment |
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|
207 |
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0.01 |
% |
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|
208 |
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|
|
0.01 |
% |
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|
237 |
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|
|
0.01 |
% |
|||
Net interest income |
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$ |
76,166 |
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$ |
75,718 |
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$ |
61,760 |
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Net interest margin(4) |
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4.32 |
% |
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4.38 |
% |
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|
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|
3.77 |
% |
||||||
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Net loan accretion impact |
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$ |
611 |
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0.03 |
% |
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$ |
729 |
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|
|
0.04 |
% |
|
|
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|
$ |
1,628 |
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|
0.10 |
% |
(1) Loan and lease balances are net of deferred origination fees and costs and initial indirect 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, using 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.
Page 3 of 17
The following table presents net interest income for the periods indicated:
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June 30, 2023 |
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Three Months Ended |
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Change from |
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Recast |
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June 30, |
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March 31, |
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June 30, |
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March 31, |
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June 30, |
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(dollars in thousands) |
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2023 |
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2023 |
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2022 |
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2023 |
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2022 |
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INTEREST AND DIVIDEND INCOME |
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Interest and fees on loans and leases |
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$ |
99,134 |
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$ |
92,343 |
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$ |
59,919 |
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7.4 |
% |
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|
65.4 |
% |
Interest on securities |
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|
6,559 |
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|
6,600 |
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|
6,264 |
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(0.6 |
)% |
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|
4.7 |
% |
Other interest and dividend income |
|
|
1,579 |
|
|
|
1,059 |
|
|
|
496 |
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|
49.1 |
% |
|
|
218.7 |
% |
Total interest and dividend income |
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|
107,272 |
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|
100,002 |
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|
66,679 |
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|
7.3 |
% |
|
|
60.9 |
% |
INTEREST EXPENSE |
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Deposits |
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24,723 |
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16,298 |
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2,128 |
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51.7 |
% |
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NM |
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Other borrowings |
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|
4,241 |
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|
5,888 |
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|
1,097 |
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(28.0 |
)% |
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|
286.4 |
% |
Subordinated notes and debentures |
|
|
2,142 |
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|
2,098 |
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|
1,694 |
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|
2.1 |
% |
|
|
26.4 |
% |
Total interest expense |
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|
31,106 |
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|
24,284 |
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|
|
4,919 |
|
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|
28.1 |
% |
|
|
532.3 |
% |
Net interest income |
|
$ |
76,166 |
|
|
$ |
75,718 |
|
|
$ |
61,760 |
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|
0.6 |
% |
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|
23.3 |
% |
Net interest income for the second quarter of 2023 was $76.2 million, an increase of $448,000, or 0.6%, from the first quarter of 2023.
The increase in net interest income was primarily due to:
Partially offset by:
Tax-equivalent net interest margin for the second quarter of 2023 was 4.33%, a decrease of six basis points compared to the first quarter of 2023. Total net loan accretion income impact on margin contributed three basis points to the net interest margin for the second quarter of 2023 compared to four basis points for the first quarter of 2023.
The average cost of total deposits was 1.70% for the second quarter of 2023, an increase of 55 basis points compared to the first quarter of 2023, as a result of increased cost of interest-bearing deposits and a decrease in average non-interest bearing deposits. Average non-interest-bearing demand deposits were 31.7% of average total deposits for the second quarter of 2023 compared to 36.3% during the first quarter of 2023.
Provision for Credit Losses
The provision for credit losses was $5.8 million for the second quarter of 2023, a decrease of $4.0 million compared to $9.8 million for the first quarter of 2023, which was mainly attributable to lower impairments for individually assessed loans and lower non-performing loans. The provision for credit losses during the quarter is comprised of a provision for loan and lease losses of $6.5 million driven by individually assessed loan impairments and lease growth, partially offset by a recapture for unfunded commitments of $677,000.
Byline Bancorp, Inc.
Page 4 of 17
Non-interest Income
The following table presents the components of non-interest income for the periods indicated:
|
|
|
|
|
|
|
|
|
|
|
June 30, 2023 |
|
||||||||
|
|
Three Months Ended |
|
|
Change from |
|
||||||||||||||
|
|
|
|
|
|
|
|
Recast |
|
|
|
|
|
|
|
|||||
|
|
June 30, |
|
|
March 31, |
|
|
June 30, |
|
|
March 31, |
|
|
June 30, |
|
|||||
(dollars in thousands) |
|
2023 |
|
|
2023 |
|
|
2022 |
|
|
2023 |
|
|
2022 |
|
|||||
NON-INTEREST INCOME |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Fees and service charges on deposits |
|
$ |
2,233 |
|
|
$ |
2,120 |
|
|
$ |
2,059 |
|
|
|
5.3 |
% |
|
|
8.5 |
% |
Loan servicing revenue |
|
|
3,377 |
|
|
|
3,380 |
|
|
|
3,384 |
|
|
|
(0.1 |
)% |
|
|
(0.2 |
)% |
Loan servicing asset revaluation |
|
|
(865 |
) |
|
|
656 |
|
|
|
(4,636 |
) |
|
NM |
|
|
|
(81.3 |
)% |
|
ATM and interchange fees |
|
|
1,112 |
|
|
|
1,063 |
|
|
|
1,131 |
|
|
|
4.6 |
% |
|
|
(1.7 |
)% |
Net realized gains (losses) on securities available-for-sale |
|
|
— |
|
|
|
— |
|
|
|
52 |
|
|
|
0.0 |
% |
|
|
(100.0 |
)% |
Change in fair value of equity securities, net |
|
|
193 |
|
|
|
350 |
|
|
|
(697 |
) |
|
|
(45.0 |
)% |
|
NM |
|
|
Net gains on sales of loans |
|
|
5,704 |
|
|
|
5,148 |
|
|
|
9,983 |
|
|
|
10.8 |
% |
|
|
(42.9 |
)% |
Wealth management and trust income |
|
|
1,039 |
|
|
|
924 |
|
|
|
900 |
|
|
|
12.5 |
% |
|
|
15.5 |
% |
Other non-interest income |
|
|
1,498 |
|
|
|
1,504 |
|
|
|
2,097 |
|
|
|
(0.3 |
)% |
|
|
(28.5 |
)% |
Total non-interest income |
|
$ |
14,291 |
|
|
$ |
15,145 |
|
|
$ |
14,273 |
|
|
|
(5.6 |
)% |
|
|
0.1 |
% |
Non-interest income for the second quarter of 2023 was $14.3 million, a decrease of $854,000, or 5.6%, compared to $15.1 million for the first quarter of 2023.
The decrease in total non-interest income was primarily due to:
Partially offset by:
During the second quarter of 2023, we sold $85.9 million of U.S. government guaranteed loans compared to $72.2 million during the first quarter of 2023.
Non-interest Expense
The following table presents the components of non-interest expense for the periods indicated:
|
|
|
|
|
|
|
|
|
|
|
June 30, 2023 |
|
||||||||
|
|
Three Months Ended |
|
|
Change from |
|
||||||||||||||
|
|
|
|
|
|
|
|
Recast |
|
|
|
|
|
|
|
|||||
|
|
June 30, |
|
|
March 31, |
|
|
June 30, |
|
|
March 31, |
|
|
June 30, |
|
|||||
(dollars in thousands) |
|
2023 |
|
|
2023 |
|
|
2022 |
|
|
2023 |
|
|
2022 |
|
|||||
NON-INTEREST EXPENSE |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Salaries and employee benefits |
|
$ |
29,642 |
|
|
$ |
30,394 |
|
|
$ |
27,697 |
|
|
|
(2.5 |
)% |
|
|
7.0 |
% |
Occupancy and equipment expense, net |
|
|
4,404 |
|
|
|
4,444 |
|
|
|
4,409 |
|
|
|
(0.9 |
)% |
|
|
(0.1 |
)% |
Impairment charge on assets held for sale |
|
|
— |
|
|
|
20 |
|
|
|
— |
|
|
|
(100.0 |
)% |
|
|
0.0 |
% |
Loan and lease related expenses |
|
|
488 |
|
|
|
963 |
|
|
|
942 |
|
|
|
(49.3 |
)% |
|
|
(48.1 |
)% |
Legal, audit and other professional fees |
|
|
3,675 |
|
|
|
3,114 |
|
|
|
1,820 |
|
|
|
18.0 |
% |
|
|
101.9 |
% |
Data processing |
|
|
4,272 |
|
|
|
3,783 |
|
|
|
3,396 |
|
|
|
12.9 |
% |
|
|
25.8 |
% |
Net (gain) loss recognized on other real estate |
|
|
288 |
|
|
|
(103 |
) |
|
|
158 |
|
|
NM |
|
|
|
82.4 |
% |
|
Other intangible assets amortization expense |
|
|
1,455 |
|
|
|
1,455 |
|
|
|
1,868 |
|
|
|
0.0 |
% |
|
|
(22.1 |
)% |
Other non-interest expense |
|
|
5,104 |
|
|
|
4,730 |
|
|
|
3,295 |
|
|
|
7.9 |
% |
|
|
54.8 |
% |
Total non-interest expense |
|
$ |
49,328 |
|
|
$ |
48,800 |
|
|
$ |
43,585 |
|
|
|
1.1 |
% |
|
|
13.2 |
% |
Non-interest expense for the second quarter of 2023 was $49.3 million, an increase of $528,000, or 1.1%, from $48.8 million for the first quarter of 2023.
The increase in total non-interest expense was primarily due to merger-related expenses, resulting in:
Byline Bancorp, Inc.
Page 5 of 17
Partially offset by:
Our efficiency ratio was 52.92% for the second quarter of 2023 compared to 52.10% for the first quarter of 2023.
INCOME TAXES
We recorded income tax expense of $9.2 million during the second quarter of 2023, compared to $8.3 million during the first quarter of 2023. The effective tax rate was 26.1% and 25.7% for the second quarter of 2023 and first quarter of 2023, respectively.
Byline Bancorp, Inc.
Page 6 of 17
STATEMENTS OF FINANCIAL CONDITION
Total assets were $7.6 billion at June 30, 2023, an increase of $45.3 million compared to $7.5 billion at March 31, 2023.
The current quarter increase was primarily due to:
Partially offset by:
The following table shows our allocation of the originated, purchase credit deteriorated, and non-credit deteriorated loans and leases at the dates indicated:
|
|
|
|
|
|
|
|
|
|
|
Recast |
|
||||||||||||
|
|
June 30, 2023 |
|
|
March 31, 2023 |
|
|
June 30, 2022 |
|
|||||||||||||||
(dollars in thousands) |
|
Amount |
|
|
% of Total |
|
|
Amount |
|
|
% of Total |
|
|
Amount |
|
|
% of Total |
|
||||||
Originated loans and leases |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Commercial real estate |
|
$ |
1,806,531 |
|
|
|
32.4 |
% |
|
$ |
1,749,808 |
|
|
|
31.7 |
% |
|
$ |
1,676,149 |
|
|
|
32.4 |
% |
Residential real estate |
|
|
453,880 |
|
|
|
8.1 |
% |
|
|
441,291 |
|
|
|
8.0 |
% |
|
|
401,773 |
|
|
|
7.8 |
% |
Construction, land development, and |
|
|
387,623 |
|
|
|
7.0 |
% |
|
|
446,763 |
|
|
|
8.1 |
% |
|
|
434,132 |
|
|
|
8.4 |
% |
Commercial and industrial |
|
|
2,086,274 |
|
|
|
37.4 |
% |
|
|
2,061,267 |
|
|
|
37.4 |
% |
|
|
1,873,128 |
|
|
|
36.2 |
% |
Installment and other |
|
|
3,582 |
|
|
|
0.1 |
% |
|
|
1,603 |
|
|
|
0.0 |
% |
|
|
927 |
|
|
|
0.0 |
% |
Leasing financing receivables |
|
|
604,437 |
|
|
|
10.9 |
% |
|
|
552,174 |
|
|
|
10.0 |
% |
|
|
438,379 |
|
|
|
8.5 |
% |
Total originated loans and leases |
|
$ |
5,342,327 |
|
|
|
95.9 |
% |
|
$ |
5,252,906 |
|
|
|
95.2 |
% |
|
$ |
4,824,488 |
|
|
|
93.3 |
% |
Purchased credit deteriorated loans |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Commercial real estate |
|
$ |
30,724 |
|
|
|
0.6 |
% |
|
$ |
39,000 |
|
|
|
0.7 |
% |
|
$ |
54,739 |
|
|
|
1.1 |
% |
Residential real estate |
|
|
26,012 |
|
|
|
0.5 |
% |
|
|
30,070 |
|
|
|
0.6 |
% |
|
|
39,209 |
|
|
|
0.8 |
% |
Construction, land development, and |
|
|
320 |
|
|
|
0.0 |
% |
|
|
345 |
|
|
|
0.0 |
% |
|
|
1,181 |
|
|
|
0.0 |
% |
Commercial and industrial |
|
|
1,726 |
|
|
|
0.0 |
% |
|
|
1,745 |
|
|
|
0.0 |
% |
|
|
2,557 |
|
|
|
0.0 |
% |
Installment and other |
|
|
129 |
|
|
|
0.0 |
% |
|
|
134 |
|
|
|
0.0 |
% |
|
|
155 |
|
|
|
0.0 |
% |
Total purchased credit deteriorated loans |
|
$ |
58,911 |
|
|
|
1.1 |
% |
|
$ |
71,294 |
|
|
|
1.3 |
% |
|
$ |
97,841 |
|
|
|
1.9 |
% |
Acquired non-credit-deteriorated loans and leases |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Commercial real estate |
|
$ |
126,191 |
|
|
|
2.3 |
% |
|
$ |
140,576 |
|
|
|
2.6 |
% |
|
$ |
168,938 |
|
|
|
3.3 |
% |
Residential real estate |
|
|
25,055 |
|
|
|
0.4 |
% |
|
|
27,975 |
|
|
|
0.5 |
% |
|
|
40,257 |
|
|
|
0.8 |
% |
Construction, land development, and |
|
|
— |
|
|
|
0.0 |
% |
|
|
— |
|
|
|
0.0 |
% |
|
|
191 |
|
|
|
0.0 |
% |
Commercial and industrial |
|
|
16,750 |
|
|
|
0.3 |
% |
|
|
20,793 |
|
|
|
0.4 |
% |
|
|
31,783 |
|
|
|
0.6 |
% |
Installment and other |
|
|
25 |
|
|
|
0.0 |
% |
|
|
85 |
|
|
|
0.0 |
% |
|
|
226 |
|
|
|
0.0 |
% |
Leasing financing receivables |
|
|
1,258 |
|
|
|
0.0 |
% |
|
|
1,703 |
|
|
|
0.0 |
% |
|
|
3,992 |
|
|
|
0.1 |
% |
Total acquired non-credit-deteriorated |
|
$ |
169,279 |
|
|
|
3.0 |
% |
|
$ |
191,132 |
|
|
|
3.5 |
% |
|
$ |
245,387 |
|
|
|
4.8 |
% |
Total loans and leases |
|
$ |
5,570,517 |
|
|
|
100.0 |
% |
|
$ |
5,515,332 |
|
|
|
100.0 |
% |
|
$ |
5,167,716 |
|
|
|
100.0 |
% |
Allowance for credit losses - loans and leases |
|
|
(92,665 |
) |
|
|
|
|
|
(90,465 |
) |
|
|
|
|
|
(74,048 |
) |
|
|
|
|||
Total loans and leases, net of allowance for |
|
$ |
5,477,852 |
|
|
|
|
|
$ |
5,424,867 |
|
|
|
|
|
$ |
5,093,668 |
|
|
|
|
Byline Bancorp, Inc.
Page 7 of 17
ASSET QUALITY
Non-Performing Assets
The following table sets forth the amounts of non-performing loans and leases and other real estate owned at the dates indicated:
|
|
|
|
|
|
|
|
|
|
|
June 30, 2023 |
|
||||||||
|
|
|
|
|
|
|
|
Recast |
|
|
Change from |
|
||||||||
(dollars in thousands) |
|
June 30, 2023 |
|
|
March 31, 2023 |
|
|
June 30, 2022 |
|
|
March 31, 2023 |
|
|
June 30, 2022 |
|
|||||
Non-performing assets: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Non-accrual loans and leases |
|
$ |
38,273 |
|
|
$ |
46,536 |
|
|
$ |
42,979 |
|
|
|
(17.8 |
)% |
|
|
(10.9 |
)% |
Past due loans and leases 90 days or more |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
—% |
|
|
—% |
|
||
Total non-performing loans and leases |
|
$ |
38,273 |
|
|
$ |
46,536 |
|
|
$ |
42,979 |
|
|
|
(17.8 |
)% |
|
|
(10.9 |
)% |
Other real estate owned |
|
|
2,265 |
|
|
|
3,712 |
|
|
|
4,749 |
|
|
|
(39.0 |
)% |
|
|
(52.3 |
)% |
Total non-performing assets |
|
$ |
40,538 |
|
|
$ |
50,248 |
|
|
$ |
47,728 |
|
|
|
(19.3 |
)% |
|
|
(15.1 |
)% |
Total non-performing loans and leases as a |
|
|
0.69 |
% |
|
|
0.84 |
% |
|
|
0.83 |
% |
|
|
|
|
|
|
||
Total non-performing assets as a percentage |
|
|
0.54 |
% |
|
|
0.67 |
% |
|
|
0.67 |
% |
|
|
|
|
|
|
||
Allowance for credit losses - loans and lease |
|
|
242.12 |
% |
|
|
194.40 |
% |
|
|
172.29 |
% |
|
|
|
|
|
|
||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Non-performing assets guaranteed by |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Non-accrual loans guaranteed |
|
$ |
2,472 |
|
|
$ |
2,335 |
|
|
$ |
1,731 |
|
|
|
5.9 |
% |
|
|
42.8 |
% |
Past due loans 90 days or more and still |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
—% |
|
|
—% |
|
||
Total non-performing loans guaranteed |
|
$ |
2,472 |
|
|
$ |
2,335 |
|
|
$ |
1,731 |
|
|
|
5.9 |
% |
|
|
42.8 |
% |
Total non-performing loans and leases |
|
|
0.64 |
% |
|
|
0.80 |
% |
|
|
0.80 |
% |
|
|
|
|
|
|
||
Total non-performing assets not guaranteed |
|
|
0.50 |
% |
|
|
0.64 |
% |
|
|
0.65 |
% |
|
|
|
|
|
|
Variances in non-performing assets were:
Allowance for Credit Losses ("ACL") - Loans and Leases
The following table presents the balance and activity within the allowance for credit losses - loans and leases for the periods indicated:
|
|
Three Months Ended |
|
|||||||||
|
|
|
|
|
|
|
|
Recast |
|
|||
|
|
June 30, |
|
|
March 31, |
|
|
June 30, |
|
|||
(dollars in thousands) |
|
2023 |
|
|
2023 |
|
|
2022 |
|
|||
ACL - loans and leases, beginning of period |
|
$ |
90,465 |
|
|
$ |
81,924 |
|
|
$ |
72,107 |
|
Provision for credit losses - loans and leases |
|
|
6,467 |
|
|
|
9,712 |
|
|
|
4,105 |
|
Net charge-offs - loans and leases |
|
|
(4,267 |
) |
|
|
(1,171 |
) |
|
|
(2,164 |
) |
ACL - loans and leases, end of period |
|
$ |
92,665 |
|
|
$ |
90,465 |
|
|
$ |
74,048 |
|
Net charge-offs - loans and leases to average total |
|
|
0.31 |
% |
|
|
0.09 |
% |
|
|
0.17 |
% |
Provision for credit losses - loans and leases |
|
|
1.52 |
x |
|
|
8.29 |
x |
|
|
1.90 |
x |
Net charge-offs of loans and leases during the second quarter of 2023 were $4.3 million, or 0.31% of average loans and leases, on an annualized basis, an increase of $3.1 million compared to $1.2 million, or 0.09% of average loans and leases, during the first quarter of 2023, and an increase of $2.1 million from $2.2 million or 0.17% of average loans and leases from the comparable period a year ago.
Byline Bancorp, Inc.
Page 8 of 17
Net charge-offs for the second quarter of 2023 included $1.7 million in the unguaranteed portion of U.S. government guaranteed loans, while net charge-offs for the first quarter of 2023 and second quarter of 2022 included $1.1 million and $2.7 million, respectively.
Deposits and Other Liabilities
The following table presents the composition of deposits at the dates indicated:
|
|
|
|
|
|
|
|
|
|
June 30, 2023 |
|
||||||||
|
|
|
|
|
|
|
|
|
|
Change from |
|
||||||||
(dollars in thousands) |
June 30, 2023 |
|
|
March 31, 2023 |
|
|
June 30, 2022 |
|
|
March 31, 2023 |
|
|
June 30, 2022 |
|
|||||
Non-interest-bearing demand deposits |
$ |
1,793,749 |
|
|
$ |
1,952,045 |
|
|
$ |
2,180,927 |
|
|
|
(8.1 |
)% |
|
|
(17.8 |
)% |
Interest-bearing checking accounts |
|
530,775 |
|
|
|
560,837 |
|
|
|
535,856 |
|
|
|
(5.4 |
)% |
|
|
(0.9 |
)% |
Money market demand accounts |
|
1,600,043 |
|
|
|
1,453,688 |
|
|
|
1,323,287 |
|
|
|
10.1 |
% |
|
|
20.9 |
% |
Other savings |
|
562,706 |
|
|
|
590,231 |
|
|
|
669,164 |
|
|
|
(4.7 |
)% |
|
|
(15.9 |
)% |
Time deposits (below $250,000) |
|
1,214,717 |
|
|
|
1,089,785 |
|
|
|
544,759 |
|
|
|
11.5 |
% |
|
|
123.0 |
% |
Time deposits ($250,000 and above) |
|
215,102 |
|
|
|
166,066 |
|
|
|
134,384 |
|
|
|
29.5 |
% |
|
|
60.1 |
% |
Total deposits |
$ |
5,917,092 |
|
|
$ |
5,812,652 |
|
|
$ |
5,388,377 |
|
|
|
1.8 |
% |
|
|
9.8 |
% |
Total deposits increased to $5.9 billion at June 30, 2023 compared to $5.8 billion at March 31, 2023. Non-interest-bearing deposits were 30.3% and 33.6% of total deposits at June 30, 2023 and March 31, 2023, respectively. Estimated total uninsured deposits were $1.5 billion and $1.6 billion as of June 30, 2023 and March 31, 2023, and represented 25.9% and 27.9% of total deposits, respectively.
The increase in deposits in the current quarter was due to:
Partially offset by:
Total borrowings and other liabilities were $844.7 million at June 30, 2023, a decrease of $77.4 million from $922.0 million at March 31, 2023, primarily driven by maturities of FHLB borrowings.
Byline Bancorp, Inc.
Page 9 of 17
Stockholders’ Equity
Total stockholders’ equity was $813.9 million at June 30, 2023, an increase of $18.3 million from $795.7 million at March 31, 2023. The increase was primarily due to increased retained earnings due to net income.
The following table presents actual regulatory capital dollar amounts and ratios of the Company and the Bank as of June 30, 2023:
|
|
Actual |
|
|
Minimum Capital |
|
|
Required to be |
|
|||||||||||||||
June 30, 2023 |
|
Amount |
|
|
Ratio |
|
|
Amount |
|
|
Ratio |
|
|
Amount |
|
|
Ratio |
|
||||||
Total capital to risk weighted assets: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Company |
|
$ |
959,688 |
|
|
|
13.52 |
% |
|
$ |
567,924 |
|
|
|
8.00 |
% |
|
N/A |
|
|
N/A |
|
||
Bank |
|
|
911,331 |
|
|
|
12.89 |
% |
|
|
565,528 |
|
|
|
8.00 |
% |
|
$ |
706,910 |
|
|
|
10.00 |
% |
Tier 1 capital to risk weighted assets: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Company |
|
$ |
796,359 |
|
|
|
11.22 |
% |
|
$ |
425,943 |
|
|
|
6.00 |
% |
|
N/A |
|
|
N/A |
|
||
Bank |
|
|
823,002 |
|
|
|
11.64 |
% |
|
|
424,146 |
|
|
|
6.00 |
% |
|
$ |
565,528 |
|
|
|
8.00 |
% |
Common Equity Tier 1 (CET1) to |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Company |
|
$ |
751,359 |
|
|
|
10.58 |
% |
|
$ |
319,457 |
|
|
|
4.50 |
% |
|
N/A |
|
|
N/A |
|
||
Bank |
|
|
823,002 |
|
|
|
11.64 |
% |
|
|
318,110 |
|
|
|
4.50 |
% |
|
$ |
459,492 |
|
|
|
6.50 |
% |
Tier 1 capital to average assets: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Company |
|
$ |
796,359 |
|
|
|
10.74 |
% |
|
$ |
296,702 |
|
|
|
4.00 |
% |
|
N/A |
|
|
N/A |
|
||
Bank |
|
|
823,002 |
|
|
|
11.12 |
% |
|
$ |
296,100 |
|
|
|
4.00 |
% |
|
$ |
370,125 |
|
|
|
5.00 |
% |
Capital ratios for the period presented are based on the Basel III regulatory capital framework as applied to our current business and operations, and are subject to, among other things, completion and filing of our regulatory reports and ongoing regulatory review and implementation guidance. The ratios above reflect the Company’s election to opt into the regulators’ joint current expected credit losses ("CECL") transition provision, which allows the Company to phase in the capital impact of the adoption of CECL over the next three years beginning January 1, 2022. Accordingly, capital ratios as of June 30, 2023 reflect 50% of the CECL impact.
CECL Adoption
On December 31, 2022, the Company adopted CECL and applied it retrospectively to the period beginning January 1, 2022 using the modified retrospective method of accounting. Results for reporting periods beginning after September 30, 2022 are presented under the new standard, while prior quarters previously reported are recast as if the new standard had been applied since 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.
Conference Call, Webcast and Slide Presentation
We will host a conference call and webcast at 9:00 a.m. Central Time on Friday, July 28, 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 993003. A recorded replay can be accessed through August 11, 2023 by dialing (866) 813-9403; passcode: 452045.
A slide presentation relating to our second 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.
Byline Bancorp, Inc.
Page 10 of 17
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 Bancorp, Inc. completed its acquisition of Inland Bancorp, Inc. on July 1, 2023, with the combined entity operating as Byline Bank and as a result has approximately $8.8 billion in assets and operates 48 total 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.
Contacts:
Investors: |
Media: |
Brooks Rennie |
Erin O’Neill |
Investor Relations Director |
Marketing Director |
312-660-5805 |
773-475-2901 |
brennie@bylinebank.com |
eoneill@bylinebank.com |
|
|
Byline Bancorp, Inc.
Page 11 of 17
BYLINE BANCORP, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION (unaudited)
|
|
|
|
|
|
|
|
|
|
|
Recast |
|
|
Recast |
|
|||||
|
|
June 30, |
|
|
March 31, |
|
|
December 31, |
|
|
September 30, |
|
|
June 30, |
|
|||||
(dollars in thousands) |
|
2023 |
|
|
2023 |
|
|
2022 |
|
|
2022 |
|
|
2022 |
|
|||||
ASSETS |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Cash and due from banks |
|
$ |
59,564 |
|
|
$ |
52,725 |
|
|
$ |
62,274 |
|
|
$ |
56,546 |
|
|
$ |
58,844 |
|
Interest bearing deposits with other banks |
|
|
260,621 |
|
|
|
231,486 |
|
|
|
117,079 |
|
|
|
159,744 |
|
|
|
83,057 |
|
Cash and cash equivalents |
|
|
320,185 |
|
|
|
284,211 |
|
|
|
179,353 |
|
|
|
216,290 |
|
|
|
141,901 |
|
Equity and other securities, at fair value |
|
|
18,473 |
|
|
|
8,339 |
|
|
|
7,989 |
|
|
|
7,279 |
|
|
|
7,860 |
|
Securities available-for-sale, at fair value |
|
|
1,125,700 |
|
|
|
1,164,387 |
|
|
|
1,174,431 |
|
|
|
1,181,654 |
|
|
|
1,273,138 |
|
Securities held-to-maturity, at amortized cost |
|
|
2,158 |
|
|
|
2,704 |
|
|
|
2,705 |
|
|
|
3,877 |
|
|
|
3,880 |
|
Restricted stock, at cost |
|
|
24,377 |
|
|
|
38,777 |
|
|
|
28,202 |
|
|
|
27,077 |
|
|
|
30,002 |
|
Loans held for sale |
|
|
25,995 |
|
|
|
28,379 |
|
|
|
47,823 |
|
|
|
33,975 |
|
|
|
17,284 |
|
Loans and leases: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Loans and leases |
|
|
5,570,517 |
|
|
|
5,515,332 |
|
|
|
5,421,258 |
|
|
|
5,275,126 |
|
|
|
5,167,716 |
|
Allowance for credit losses - loans and leases |
|
|
(92,665 |
) |
|
|
(90,465 |
) |
|
|
(81,924 |
) |
|
|
(79,704 |
) |
|
|
(74,048 |
) |
Net loans and leases |
|
|
5,477,852 |
|
|
|
5,424,867 |
|
|
|
5,339,334 |
|
|
|
5,195,422 |
|
|
|
5,093,668 |
|
Servicing assets, at fair value |
|
|
21,715 |
|
|
|
20,944 |
|
|
|
19,172 |
|
|
|
21,127 |
|
|
|
22,155 |
|
Premises and equipment, net |
|
|
56,304 |
|
|
|
56,098 |
|
|
|
56,798 |
|
|
|
59,049 |
|
|
|
60,773 |
|
Other real estate owned, net |
|
|
2,265 |
|
|
|
3,712 |
|
|
|
4,717 |
|
|
|
4,402 |
|
|
|
4,749 |
|
Goodwill and other intangible assets, net |
|
|
155,977 |
|
|
|
157,432 |
|
|
|
158,887 |
|
|
|
160,484 |
|
|
|
162,094 |
|
Bank-owned life insurance |
|
|
83,222 |
|
|
|
82,693 |
|
|
|
82,093 |
|
|
|
81,592 |
|
|
|
81,100 |
|
Deferred tax assets, net |
|
|
66,895 |
|
|
|
64,918 |
|
|
|
68,213 |
|
|
|
95,831 |
|
|
|
82,412 |
|
Accrued interest receivable and other assets |
|
|
194,572 |
|
|
|
192,885 |
|
|
|
193,224 |
|
|
|
179,218 |
|
|
|
143,014 |
|
Total assets |
|
$ |
7,575,690 |
|
|
$ |
7,530,346 |
|
|
$ |
7,362,941 |
|
|
$ |
7,267,277 |
|
|
$ |
7,124,030 |
|
LIABILITIES AND STOCKHOLDERS’ EQUITY |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
LIABILITIES |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Non-interest-bearing demand deposits |
|
$ |
1,793,749 |
|
|
$ |
1,952,045 |
|
|
$ |
2,138,645 |
|
|
$ |
2,142,183 |
|
|
$ |
2,180,927 |
|
Interest-bearing deposits |
|
|
4,123,343 |
|
|
|
3,860,607 |
|
|
|
3,556,476 |
|
|
|
3,470,273 |
|
|
|
3,207,450 |
|
Total deposits |
|
|
5,917,092 |
|
|
|
5,812,652 |
|
|
|
5,695,121 |
|
|
|
5,612,456 |
|
|
|
5,388,377 |
|
Other borrowings |
|
|
574,922 |
|
|
|
662,810 |
|
|
|
640,399 |
|
|
|
653,954 |
|
|
|
748,092 |
|
Subordinated notes, net |
|
|
73,778 |
|
|
|
73,735 |
|
|
|
73,691 |
|
|
|
73,648 |
|
|
|
73,604 |
|
Junior subordinated debentures issued to |
|
|
37,557 |
|
|
|
37,442 |
|
|
|
37,338 |
|
|
|
37,232 |
|
|
|
37,123 |
|
Accrued expenses and other liabilities |
|
|
158,399 |
|
|
|
148,057 |
|
|
|
150,576 |
|
|
|
154,182 |
|
|
|
121,186 |
|
Total liabilities |
|
|
6,761,748 |
|
|
|
6,734,696 |
|
|
|
6,597,125 |
|
|
|
6,531,472 |
|
|
|
6,368,382 |
|
STOCKHOLDERS’ EQUITY |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Preferred stock |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
Common stock |
|
|
391 |
|
|
|
390 |
|
|
|
389 |
|
|
|
389 |
|
|
|
388 |
|
Additional paid-in capital |
|
|
599,718 |
|
|
|
598,103 |
|
|
|
598,297 |
|
|
|
597,049 |
|
|
|
595,938 |
|
Retained earnings |
|
|
379,078 |
|
|
|
356,365 |
|
|
|
335,794 |
|
|
|
314,800 |
|
|
|
297,765 |
|
Treasury stock |
|
|
(50,383 |
) |
|
|
(51,066 |
) |
|
|
(51,114 |
) |
|
|
(51,535 |
) |
|
|
(47,181 |
) |
Accumulated other comprehensive loss, net of tax |
|
|
(114,862 |
) |
|
|
(108,142 |
) |
|
|
(117,550 |
) |
|
|
(124,898 |
) |
|
|
(91,262 |
) |
Total stockholders’ equity |
|
|
813,942 |
|
|
|
795,650 |
|
|
|
765,816 |
|
|
|
735,805 |
|
|
|
755,648 |
|
Total liabilities and stockholders’ equity |
|
$ |
7,575,690 |
|
|
$ |
7,530,346 |
|
|
$ |
7,362,941 |
|
|
$ |
7,267,277 |
|
|
$ |
7,124,030 |
|
Byline Bancorp, Inc.
Page 12 of 17
BYLINE BANCORP, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS (unaudited)
|
|
Three Months Ended |
|
|
Six Months Ended |
|
||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
Recast |
|
|
Recast |
|
|
|
|
|
Recast |
|
|||||||
(dollars in thousands, |
|
June 30, |
|
|
March 31, |
|
|
December 31, |
|
|
September 30, |
|
|
June 30, |
|
|
June 30, |
|
|
June 30, |
|
|||||||
except per share data) |
|
2023 |
|
|
2023 |
|
|
2022 |
|
|
2022 |
|
|
2022 |
|
|
2023 |
|
|
2022 |
|
|||||||
INTEREST AND DIVIDEND INCOME |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
Interest and fees on loans and leases |
|
$ |
99,134 |
|
|
$ |
92,343 |
|
|
$ |
85,720 |
|
|
$ |
72,635 |
|
|
$ |
59,919 |
|
|
$ |
191,477 |
|
|
$ |
115,057 |
|
Interest on securities |
|
|
6,559 |
|
|
|
6,600 |
|
|
|
6,569 |
|
|
|
6,402 |
|
|
|
6,264 |
|
|
|
13,159 |
|
|
|
12,419 |
|
Other interest and dividend income |
|
|
1,579 |
|
|
|
1,059 |
|
|
|
1,515 |
|
|
|
626 |
|
|
|
496 |
|
|
|
2,638 |
|
|
|
616 |
|
Total interest and dividend income |
|
|
107,272 |
|
|
|
100,002 |
|
|
|
93,804 |
|
|
|
79,663 |
|
|
|
66,679 |
|
|
|
207,274 |
|
|
|
128,092 |
|
INTEREST EXPENSE |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
Deposits |
|
|
24,723 |
|
|
|
16,298 |
|
|
|
10,610 |
|
|
|
5,971 |
|
|
|
2,128 |
|
|
|
41,021 |
|
|
|
3,215 |
|
Other borrowings |
|
|
4,241 |
|
|
|
5,888 |
|
|
|
4,598 |
|
|
|
3,232 |
|
|
|
1,097 |
|
|
|
10,129 |
|
|
|
1,492 |
|
Subordinated notes and debentures |
|
|
2,142 |
|
|
|
2,098 |
|
|
|
1,992 |
|
|
|
1,825 |
|
|
|
1,694 |
|
|
|
4,240 |
|
|
|
3,294 |
|
Total interest expense |
|
|
31,106 |
|
|
|
24,284 |
|
|
|
17,200 |
|
|
|
11,028 |
|
|
|
4,919 |
|
|
|
55,390 |
|
|
|
8,001 |
|
Net interest income |
|
|
76,166 |
|
|
|
75,718 |
|
|
|
76,604 |
|
|
|
68,635 |
|
|
|
61,760 |
|
|
|
151,884 |
|
|
|
120,091 |
|
PROVISION FOR CREDIT LOSSES |
|
|
5,790 |
|
|
|
9,825 |
|
|
|
5,826 |
|
|
|
7,208 |
|
|
|
4,286 |
|
|
|
15,615 |
|
|
|
10,845 |
|
Net interest income after |
|
|
70,376 |
|
|
|
65,893 |
|
|
|
70,778 |
|
|
|
61,427 |
|
|
|
57,474 |
|
|
|
136,269 |
|
|
|
109,246 |
|
NON-INTEREST INCOME |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
Fees and service charges on deposits |
|
|
2,233 |
|
|
|
2,120 |
|
|
|
2,081 |
|
|
|
2,128 |
|
|
|
2,059 |
|
|
|
4,353 |
|
|
|
3,943 |
|
Loan servicing revenue |
|
|
3,377 |
|
|
|
3,380 |
|
|
|
3,293 |
|
|
|
3,422 |
|
|
|
3,384 |
|
|
|
6,757 |
|
|
|
6,764 |
|
Loan servicing asset revaluation |
|
|
(865 |
) |
|
|
656 |
|
|
|
(3,534 |
) |
|
|
(2,342 |
) |
|
|
(4,636 |
) |
|
|
(209 |
) |
|
|
(5,867 |
) |
ATM and interchange fees |
|
|
1,112 |
|
|
|
1,063 |
|
|
|
1,250 |
|
|
|
1,007 |
|
|
|
1,131 |
|
|
|
2,175 |
|
|
|
2,180 |
|
Net realized gains (losses) on securities |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(2 |
) |
|
|
52 |
|
|
|
— |
|
|
|
52 |
|
Change in fair value of equity |
|
|
193 |
|
|
|
350 |
|
|
|
710 |
|
|
|
(581 |
) |
|
|
(697 |
) |
|
|
543 |
|
|
|
(732 |
) |
Net gains on sales of loans |
|
|
5,704 |
|
|
|
5,148 |
|
|
|
5,509 |
|
|
|
5,580 |
|
|
|
9,983 |
|
|
|
10,852 |
|
|
|
20,810 |
|
Wealth management and trust income |
|
|
1,039 |
|
|
|
924 |
|
|
|
864 |
|
|
|
995 |
|
|
|
900 |
|
|
|
1,963 |
|
|
|
1,948 |
|
Other non-interest income |
|
|
1,498 |
|
|
|
1,504 |
|
|
|
1,282 |
|
|
|
1,836 |
|
|
|
2,097 |
|
|
|
3,002 |
|
|
|
4,718 |
|
Total non-interest income |
|
|
14,291 |
|
|
|
15,145 |
|
|
|
11,455 |
|
|
|
12,043 |
|
|
|
14,273 |
|
|
|
29,436 |
|
|
|
33,816 |
|
NON-INTEREST EXPENSE |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
Salaries and employee benefits |
|
|
29,642 |
|
|
|
30,394 |
|
|
|
31,808 |
|
|
|
29,587 |
|
|
|
27,697 |
|
|
|
60,036 |
|
|
|
56,656 |
|
Occupancy and equipment expense, |
|
|
4,404 |
|
|
|
4,444 |
|
|
|
3,532 |
|
|
|
3,919 |
|
|
|
4,409 |
|
|
|
8,848 |
|
|
|
9,537 |
|
Impairment charge on assets |
|
|
— |
|
|
|
20 |
|
|
|
372 |
|
|
|
— |
|
|
|
— |
|
|
|
20 |
|
|
|
— |
|
Loan and lease related expenses |
|
|
488 |
|
|
|
963 |
|
|
|
1,126 |
|
|
|
530 |
|
|
|
942 |
|
|
|
1,451 |
|
|
|
51 |
|
Legal, audit, and other |
|
|
3,675 |
|
|
|
3,114 |
|
|
|
3,204 |
|
|
|
2,733 |
|
|
|
1,820 |
|
|
|
6,789 |
|
|
|
4,420 |
|
Data processing |
|
|
4,272 |
|
|
|
3,783 |
|
|
|
3,406 |
|
|
|
3,370 |
|
|
|
3,396 |
|
|
|
8,055 |
|
|
|
6,582 |
|
Net (gain) loss recognized on other real |
|
|
288 |
|
|
|
(103 |
) |
|
|
221 |
|
|
|
275 |
|
|
|
158 |
|
|
|
185 |
|
|
|
212 |
|
Other intangible assets amortization |
|
|
1,455 |
|
|
|
1,455 |
|
|
|
1,596 |
|
|
|
1,611 |
|
|
|
1,868 |
|
|
|
2,910 |
|
|
|
3,464 |
|
Other non-interest expense |
|
|
5,104 |
|
|
|
4,730 |
|
|
|
5,235 |
|
|
|
4,016 |
|
|
|
3,295 |
|
|
|
9,834 |
|
|
|
6,619 |
|
Total non-interest expense |
|
|
49,328 |
|
|
|
48,800 |
|
|
|
50,500 |
|
|
|
46,041 |
|
|
|
43,585 |
|
|
|
98,128 |
|
|
|
87,541 |
|
INCOME BEFORE PROVISION FOR |
|
|
35,339 |
|
|
|
32,238 |
|
|
|
31,733 |
|
|
|
27,429 |
|
|
|
28,162 |
|
|
|
67,577 |
|
|
|
55,521 |
|
PROVISION FOR INCOME TAXES |
|
|
9,232 |
|
|
|
8,293 |
|
|
|
7,366 |
|
|
|
7,020 |
|
|
|
6,382 |
|
|
|
17,525 |
|
|
|
12,343 |
|
NET INCOME |
|
|
26,107 |
|
|
|
23,945 |
|
|
|
24,367 |
|
|
|
20,409 |
|
|
|
21,780 |
|
|
|
50,052 |
|
|
|
43,178 |
|
Dividends on preferred shares |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
196 |
|
INCOME AVAILABLE TO COMMON |
|
$ |
26,107 |
|
|
$ |
23,945 |
|
|
$ |
24,367 |
|
|
$ |
20,409 |
|
|
$ |
21,780 |
|
|
$ |
50,052 |
|
|
$ |
42,982 |
|
EARNINGS PER COMMON SHARE |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
Basic |
|
$ |
0.70 |
|
|
$ |
0.65 |
|
|
$ |
0.66 |
|
|
$ |
0.55 |
|
|
$ |
0.59 |
|
|
$ |
1.35 |
|
|
$ |
1.16 |
|
Diluted |
|
$ |
0.70 |
|
|
$ |
0.64 |
|
|
$ |
0.65 |
|
|
$ |
0.55 |
|
|
$ |
0.58 |
|
|
$ |
1.34 |
|
|
$ |
1.14 |
|
Byline Bancorp, Inc.
Page 13 of 17
BYLINE BANCORP, INC. AND SUBSIDIARIES
SELECTED FINANCIAL DATA (unaudited)
|
As of or For the Three Months Ended |
|
|
As of or For the Six Months Ended |
|
||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
Recast |
|
|
Recast |
|
|
|
|
|
Recast |
|
|||||||
(dollars in thousands, except share |
June 30, |
|
|
March 31, |
|
|
December 31, |
|
|
September 30, |
|
|
June 30, |
|
|
June 30, |
|
|
June 30, |
|
|||||||
and per share data) |
2023 |
|
|
2023 |
|
|
2022 |
|
|
2022 |
|
|
2022 |
|
|
2023 |
|
|
2022 |
|
|||||||
Earnings per Common Share |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
Basic earnings per common share |
$ |
0.70 |
|
|
$ |
0.65 |
|
|
$ |
0.66 |
|
|
$ |
0.55 |
|
|
$ |
0.59 |
|
|
$ |
1.35 |
|
|
$ |
1.16 |
|
Diluted earnings per common share |
$ |
0.70 |
|
|
$ |
0.64 |
|
|
$ |
0.65 |
|
|
$ |
0.55 |
|
|
$ |
0.58 |
|
|
$ |
1.34 |
|
|
$ |
1.14 |
|
Adjusted diluted earnings per |
$ |
0.73 |
|
|
$ |
0.65 |
|
|
$ |
0.67 |
|
|
$ |
0.55 |
|
|
$ |
0.58 |
|
|
$ |
1.38 |
|
|
$ |
1.14 |
|
Weighted average common shares |
|
37,034,626 |
|
|
|
36,955,085 |
|
|
|
36,856,221 |
|
|
|
36,851,973 |
|
|
|
37,064,795 |
|
|
|
36,995,075 |
|
|
|
37,093,816 |
|
Weighted average common shares |
|
37,337,906 |
|
|
|
37,539,912 |
|
|
|
37,360,113 |
|
|
|
37,371,159 |
|
|
|
37,612,268 |
|
|
|
37,444,381 |
|
|
|
37,740,682 |
|
Common shares outstanding |
|
37,752,002 |
|
|
|
37,713,427 |
|
|
|
37,492,775 |
|
|
|
37,465,902 |
|
|
|
37,669,102 |
|
|
|
37,752,002 |
|
|
|
37,669,102 |
|
Cash dividends per common share |
$ |
0.09 |
|
|
$ |
0.09 |
|
|
$ |
0.09 |
|
|
$ |
0.09 |
|
|
$ |
0.09 |
|
|
$ |
0.18 |
|
|
$ |
0.18 |
|
Dividend payout ratio on |
|
12.86 |
% |
|
|
14.06 |
% |
|
|
13.85 |
% |
|
|
16.36 |
% |
|
|
15.52 |
% |
|
|
13.43 |
% |
|
|
15.79 |
% |
Tangible book value per |
$ |
17.43 |
|
|
$ |
16.92 |
|
|
$ |
16.19 |
|
|
$ |
15.36 |
|
|
$ |
15.76 |
|
|
$ |
17.43 |
|
|
$ |
15.76 |
|
Key Ratios and Performance Metrics |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
Net interest margin, fully taxable |
|
4.33 |
% |
|
|
4.39 |
% |
|
|
4.40 |
% |
|
|
4.04 |
% |
|
|
3.78 |
% |
|
|
4.36 |
% |
|
|
3.79 |
% |
Average cost of deposits |
|
1.70 |
% |
|
|
1.15 |
% |
|
|
0.73 |
% |
|
|
0.43 |
% |
|
|
0.16 |
% |
|
|
1.43 |
% |
|
|
0.12 |
% |
Efficiency ratio(2) |
|
52.92 |
% |
|
|
52.10 |
% |
|
|
55.53 |
% |
|
|
55.07 |
% |
|
|
54.87 |
% |
|
|
52.51 |
% |
|
|
54.63 |
% |
Adjusted efficiency ratio(1)(2)(3) |
|
51.39 |
% |
|
|
51.54 |
% |
|
|
54.50 |
% |
|
|
55.07 |
% |
|
|
54.87 |
% |
|
|
51.47 |
% |
|
|
54.63 |
% |
Non-interest income to total |
|
15.80 |
% |
|
|
16.67 |
% |
|
|
13.01 |
% |
|
|
14.93 |
% |
|
|
18.77 |
% |
|
|
16.23 |
% |
|
|
21.97 |
% |
Non-interest expense to average assets |
|
2.67 |
% |
|
|
2.69 |
% |
|
|
2.76 |
% |
|
|
2.56 |
% |
|
|
2.51 |
% |
|
|
2.68 |
% |
|
|
2.58 |
% |
Adjusted non-interest expense to |
|
2.60 |
% |
|
|
2.67 |
% |
|
|
2.71 |
% |
|
|
2.56 |
% |
|
|
2.51 |
% |
|
|
2.63 |
% |
|
|
2.58 |
% |
Return on average stockholders' equity |
|
12.99 |
% |
|
|
12.38 |
% |
|
|
12.92 |
% |
|
|
10.57 |
% |
|
|
11.35 |
% |
|
|
12.69 |
% |
|
|
10.94 |
% |
Adjusted return on average |
|
13.56 |
% |
|
|
12.62 |
% |
|
|
13.34 |
% |
|
|
10.57 |
% |
|
|
11.35 |
% |
|
|
13.10 |
% |
|
|
10.94 |
% |
Return on average assets |
|
1.41 |
% |
|
|
1.32 |
% |
|
|
1.33 |
% |
|
|
1.13 |
% |
|
|
1.25 |
% |
|
|
1.37 |
% |
|
|
1.27 |
% |
Adjusted return on average assets(1)(3) |
|
1.48 |
% |
|
|
1.35 |
% |
|
|
1.37 |
% |
|
|
1.13 |
% |
|
|
1.25 |
% |
|
|
1.41 |
% |
|
|
1.27 |
% |
Pre-tax pre-provision return on |
|
2.23 |
% |
|
|
2.32 |
% |
|
|
2.05 |
% |
|
|
1.93 |
% |
|
|
1.87 |
% |
|
|
2.27 |
% |
|
|
1.96 |
% |
Adjusted pre-tax pre-provision return |
|
2.30 |
% |
|
|
2.35 |
% |
|
|
2.10 |
% |
|
|
1.93 |
% |
|
|
1.87 |
% |
|
|
2.33 |
% |
|
|
1.96 |
% |
Return on average tangible common |
|
16.78 |
% |
|
|
16.20 |
% |
|
|
17.21 |
% |
|
|
14.17 |
% |
|
|
15.31 |
% |
|
|
16.50 |
% |
|
|
14.65 |
% |
Adjusted return on average tangible |
|
17.50 |
% |
|
|
16.49 |
% |
|
|
17.75 |
% |
|
|
14.17 |
% |
|
|
15.31 |
% |
|
|
17.01 |
% |
|
|
14.65 |
% |
Non-interest-bearing deposits to |
|
30.31 |
% |
|
|
33.58 |
% |
|
|
37.55 |
% |
|
|
38.17 |
% |
|
|
40.47 |
% |
|
|
30.31 |
% |
|
|
40.47 |
% |
Loans and leases held for sale and |
|
94.58 |
% |
|
|
95.37 |
% |
|
|
96.03 |
% |
|
|
94.59 |
% |
|
|
96.23 |
% |
|
|
94.58 |
% |
|
|
96.23 |
% |
Deposits to total liabilities |
|
87.51 |
% |
|
|
86.31 |
% |
|
|
86.33 |
% |
|
|
85.93 |
% |
|
|
84.61 |
% |
|
|
87.51 |
% |
|
|
84.61 |
% |
Deposits per branch |
$ |
155,713 |
|
|
$ |
152,965 |
|
|
$ |
149,872 |
|
|
$ |
147,696 |
|
|
$ |
141,799 |
|
|
$ |
155,713 |
|
|
$ |
141,799 |
|
Asset Quality Ratios |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
Non-performing loans and leases to |
|
0.69 |
% |
|
|
0.84 |
% |
|
|
0.66 |
% |
|
|
0.80 |
% |
|
|
0.83 |
% |
|
|
0.69 |
% |
|
|
0.83 |
% |
ACL to total loans and leases held for |
|
1.66 |
% |
|
|
1.64 |
% |
|
|
1.51 |
% |
|
|
1.51 |
% |
|
|
1.43 |
% |
|
|
1.66 |
% |
|
|
1.43 |
% |
Net charge-offs to average total loans |
|
0.31 |
% |
|
|
0.09 |
% |
|
|
0.24 |
% |
|
|
0.14 |
% |
|
|
0.17 |
% |
|
|
0.20 |
% |
|
|
0.12 |
% |
Capital Ratios |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
Common equity to total assets |
|
10.74 |
% |
|
|
10.57 |
% |
|
|
10.40 |
% |
|
|
10.12 |
% |
|
|
10.61 |
% |
|
|
10.74 |
% |
|
|
10.61 |
% |
Tangible common equity to |
|
8.87 |
% |
|
|
8.66 |
% |
|
|
8.42 |
% |
|
|
8.10 |
% |
|
|
8.53 |
% |
|
|
8.87 |
% |
|
|
8.53 |
% |
Leverage ratio |
|
10.74 |
% |
|
|
10.46 |
% |
|
|
10.29 |
% |
|
|
10.30 |
% |
|
|
10.34 |
% |
|
|
10.74 |
% |
|
|
10.34 |
% |
Common equity tier 1 capital ratio |
|
10.58 |
% |
|
|
10.27 |
% |
|
|
10.20 |
% |
|
|
10.24 |
% |
|
|
10.26 |
% |
|
|
10.58 |
% |
|
|
10.26 |
% |
Tier 1 capital ratio |
|
11.22 |
% |
|
|
10.90 |
% |
|
|
10.85 |
% |
|
|
10.91 |
% |
|
|
10.95 |
% |
|
|
11.22 |
% |
|
|
10.95 |
% |
Total capital ratio |
|
13.52 |
% |
|
|
13.19 |
% |
|
|
13.00 |
% |
|
|
13.02 |
% |
|
|
13.09 |
% |
|
|
13.52 |
% |
|
|
13.09 |
% |
(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 impairment charges on asset held for sale and merger-related expenses.
(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.
Page 14 of 17
BYLINE BANCORP, INC. AND SUBSIDIARIES
YEAR-TO-DATE STATEMENT OF AVERAGE INTEREST-EARNING ASSETS AND AVERAGE INTERST-BEARING LIABILITIES (unaudited)
|
|
For the Six Months Ended |
|
|||||||||||||||||||||
|
|
June 30, 2023 |
|
|
Recast June 30, 2022 |
|
||||||||||||||||||
(dollars in thousands) |
|
Average |
|
|
Interest |
|
|
Average |
|
|
Average |
|
|
Interest |
|
|
Average |
|
||||||
ASSETS |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Cash and cash equivalents |
|
$ |
116,394 |
|
|
$ |
1,483 |
|
|
|
2.57 |
% |
|
$ |
70,404 |
|
|
$ |
103 |
|
|
|
0.29 |
% |
Loans and leases(1) |
|
|
5,510,124 |
|
|
|
191,477 |
|
|
|
7.01 |
% |
|
|
4,839,266 |
|
|
|
115,057 |
|
|
|
4.79 |
% |
Taxable securities |
|
|
1,263,010 |
|
|
|
12,755 |
|
|
|
2.04 |
% |
|
|
1,335,218 |
|
|
|
11,150 |
|
|
|
1.68 |
% |
Tax-exempt securities(2) |
|
|
151,509 |
|
|
|
1,974 |
|
|
|
2.63 |
% |
|
|
169,107 |
|
|
|
2,255 |
|
|
|
2.69 |
% |
Total interest-earning assets |
|
$ |
7,041,037 |
|
|
$ |
207,689 |
|
|
|
5.95 |
% |
|
$ |
6,413,995 |
|
|
$ |
128,565 |
|
|
|
4.04 |
% |
Allowance for credit losses - loans and leases |
|
|
(88,586 |
) |
|
|
|
|
|
|
|
|
(70,302 |
) |
|
|
|
|
|
|
||||
All other assets |
|
|
422,236 |
|
|
|
|
|
|
|
|
|
489,070 |
|
|
|
|
|
|
|
||||
TOTAL ASSETS |
|
$ |
7,374,687 |
|
|
|
|
|
|
|
|
$ |
6,832,763 |
|
|
|
|
|
|
|
||||
LIABILITIES AND STOCKHOLDERS’ |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Deposits |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Interest checking |
|
$ |
573,342 |
|
|
$ |
4,669 |
|
|
|
1.64 |
% |
|
$ |
597,665 |
|
|
$ |
593 |
|
|
|
0.20 |
% |
Money market accounts |
|
|
1,500,260 |
|
|
|
18,527 |
|
|
|
2.49 |
% |
|
|
1,281,519 |
|
|
|
1,668 |
|
|
|
0.26 |
% |
Savings |
|
|
594,316 |
|
|
|
447 |
|
|
|
0.15 |
% |
|
|
657,155 |
|
|
|
159 |
|
|
|
0.05 |
% |
Time deposits |
|
|
1,148,545 |
|
|
|
17,378 |
|
|
|
3.05 |
% |
|
|
644,543 |
|
|
|
795 |
|
|
|
0.25 |
% |
Total interest-bearing deposits |
|
|
3,816,463 |
|
|
|
41,021 |
|
|
|
2.17 |
% |
|
|
3,180,882 |
|
|
|
3,215 |
|
|
|
0.20 |
% |
Other borrowings |
|
|
541,249 |
|
|
|
10,093 |
|
|
|
3.76 |
% |
|
|
394,385 |
|
|
|
1,478 |
|
|
|
0.76 |
% |
Federal funds purchased |
|
|
1,381 |
|
|
|
36 |
|
|
|
5.30 |
% |
|
|
1,271 |
|
|
|
14 |
|
|
|
2.32 |
% |
Subordinated notes and debentures |
|
|
111,178 |
|
|
|
4,240 |
|
|
|
7.69 |
% |
|
|
110,570 |
|
|
|
3,294 |
|
|
|
6.01 |
% |
Total borrowings |
|
|
653,808 |
|
|
|
14,369 |
|
|
|
4.43 |
% |
|
|
506,226 |
|
|
|
4,786 |
|
|
|
1.91 |
% |
Total interest-bearing liabilities |
|
$ |
4,470,271 |
|
|
$ |
55,390 |
|
|
|
2.50 |
% |
|
$ |
3,687,108 |
|
|
$ |
8,001 |
|
|
|
0.44 |
% |
Non-interest-bearing demand deposits |
|
|
1,961,945 |
|
|
|
|
|
|
|
|
|
2,256,778 |
|
|
|
|
|
|
|
||||
Other liabilities |
|
|
147,130 |
|
|
|
|
|
|
|
|
|
93,166 |
|
|
|
|
|
|
|
||||
Total stockholders’ equity |
|
|
795,341 |
|
|
|
|
|
|
|
|
|
795,711 |
|
|
|
|
|
|
|
||||
TOTAL LIABILITIES AND |
|
$ |
7,374,687 |
|
|
|
|
|
|
|
|
$ |
6,832,763 |
|
|
|
|
|
|
|
||||
Net interest spread(3) |
|
|
|
|
|
|
|
|
3.45 |
% |
|
|
|
|
|
|
|
|
3.60 |
% |
||||
Net interest income, fully |
|
|
|
|
$ |
152,299 |
|
|
|
|
|
|
|
|
$ |
120,564 |
|
|
|
|
||||
Net interest margin, fully |
|
|
|
|
|
|
|
|
4.36 |
% |
|
|
|
|
|
|
|
|
3.79 |
% |
||||
Less: Tax-equivalent adjustment |
|
|
|
|
|
415 |
|
|
|
0.01 |
% |
|
|
|
|
|
473 |
|
|
|
0.01 |
% |
||
Net interest income |
|
|
|
|
$ |
151,884 |
|
|
|
|
|
|
|
|
$ |
120,091 |
|
|
|
|
||||
Net interest margin(4) |
|
|
|
|
|
|
|
|
4.35 |
% |
|
|
|
|
|
|
|
|
3.78 |
% |
||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Net loan accretion impact on margin |
|
|
|
|
$ |
1,340 |
|
|
|
0.04 |
% |
|
|
|
|
$ |
2,815 |
|
|
|
0.09 |
% |
(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.
Page 15 of 17
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 |
|
|
As of or For the Six Months Ended |
|
||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
Recast |
|
|
Recast |
|
|
|
|
|
Recast |
|
|||||||
|
|
June 30, |
|
|
March 31, |
|
|
December 31, |
|
|
September 30, |
|
|
June 30, |
|
|
June 30, |
|
|
June 30, |
|
|||||||
(dollars in thousands, except per share data) |
|
2023 |
|
|
2023 |
|
|
2022 |
|
|
2022 |
|
|
2022 |
|
|
2023 |
|
|
2022 |
|
|||||||
Net income and earnings per share |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
Reported Net Income |
|
$ |
26,107 |
|
|
$ |
23,945 |
|
|
$ |
24,367 |
|
|
$ |
20,409 |
|
|
$ |
21,780 |
|
|
$ |
50,052 |
|
|
$ |
43,178 |
|
Significant items: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
Impairment charges on assets held |
|
|
— |
|
|
|
20 |
|
|
|
372 |
|
|
|
— |
|
|
|
— |
|
|
|
20 |
|
|
|
— |
|
Merger-related expenses |
|
|
1,391 |
|
|
|
489 |
|
|
|
538 |
|
|
|
— |
|
|
|
— |
|
|
|
1,880 |
|
|
|
— |
|
Tax benefit |
|
|
(230 |
) |
|
|
(56 |
) |
|
|
(118 |
) |
|
|
— |
|
|
|
— |
|
|
|
(286 |
) |
|
|
— |
|
Adjusted Net Income |
|
$ |
27,268 |
|
|
$ |
24,398 |
|
|
$ |
25,159 |
|
|
$ |
20,409 |
|
|
$ |
21,780 |
|
|
$ |
51,666 |
|
|
$ |
43,178 |
|
Reported Diluted Earnings per Share |
|
$ |
0.70 |
|
|
$ |
0.64 |
|
|
$ |
0.65 |
|
|
$ |
0.55 |
|
|
$ |
0.58 |
|
|
$ |
1.34 |
|
|
$ |
1.14 |
|
Significant items: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
Impairment charges on assets held |
|
|
— |
|
|
|
— |
|
|
|
0.01 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
Merger-related expenses |
|
|
0.04 |
|
|
|
0.01 |
|
|
|
0.01 |
|
|
|
— |
|
|
|
— |
|
|
|
0.05 |
|
|
|
— |
|
Tax benefit |
|
|
(0.01 |
) |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(0.01 |
) |
|
|
— |
|
Adjusted Diluted Earnings per Share |
|
$ |
0.73 |
|
|
$ |
0.65 |
|
|
$ |
0.67 |
|
|
$ |
0.55 |
|
|
$ |
0.58 |
|
|
$ |
1.38 |
|
|
$ |
1.14 |
|
Byline Bancorp, Inc.
Page 16 of 17
BYLINE BANCORP, INC. AND SUBSIDIARIES
RECONCILIATION OF NON-GAAP FINANCIAL MEASURES (continued) (unaudited)
|
|
As of or For the Three Months Ended |
|
|
As of or For the Six Months Ended |
|
||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
Recast |
|
|
Recast |
|
|
|
|
|
Recast |
|
|||||||
(dollars in thousands, except per share data, |
|
June 30, |
|
|
March 31, |
|
|
December 31, |
|
|
September 30, |
|
|
June 30, |
|
|
June 30, |
|
|
June 30, |
|
|||||||
ratios annualized, where applicable) |
|
2023 |
|
|
2023 |
|
|
2022 |
|
|
2022 |
|
|
2022 |
|
|
2023 |
|
|
2022 |
|
|||||||
Adjusted non-interest expense: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
Non-interest expense |
|
$ |
49,328 |
|
|
$ |
48,800 |
|
|
$ |
50,500 |
|
|
$ |
46,041 |
|
|
$ |
43,585 |
|
|
$ |
98,128 |
|
|
$ |
87,541 |
|
Less: Significant items |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
Impairment charges on assets held for sale |
|
|
— |
|
|
|
20 |
|
|
|
372 |
|
|
|
— |
|
|
|
— |
|
|
|
20 |
|
|
|
— |
|
Merger-related expenses |
|
|
1,391 |
|
|
|
489 |
|
|
|
538 |
|
|
|
— |
|
|
|
— |
|
|
|
1,880 |
|
|
|
— |
|
Adjusted non-interest expense |
|
$ |
47,937 |
|
|
$ |
48,291 |
|
|
$ |
49,590 |
|
|
$ |
46,041 |
|
|
$ |
43,585 |
|
|
$ |
96,228 |
|
|
$ |
87,541 |
|
Adjusted non-interest expense excluding |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
Adjusted non-interest expense |
|
$ |
47,937 |
|
|
$ |
48,291 |
|
|
$ |
49,590 |
|
|
$ |
46,041 |
|
|
$ |
43,585 |
|
|
$ |
96,228 |
|
|
$ |
87,541 |
|
Less: Amortization of intangible assets |
|
|
1,455 |
|
|
|
1,455 |
|
|
|
1,596 |
|
|
|
1,611 |
|
|
|
1,868 |
|
|
|
2,910 |
|
|
|
3,464 |
|
Adjusted non-interest expense excluding |
|
$ |
46,482 |
|
|
$ |
46,836 |
|
|
$ |
47,994 |
|
|
$ |
44,430 |
|
|
$ |
41,717 |
|
|
$ |
93,318 |
|
|
$ |
84,077 |
|
Pre-tax pre-provision net income: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
Pre-tax income |
|
$ |
35,339 |
|
|
$ |
32,238 |
|
|
$ |
31,733 |
|
|
$ |
27,429 |
|
|
$ |
28,162 |
|
|
$ |
67,577 |
|
|
$ |
55,521 |
|
Add: Provision for credit losses |
|
|
5,790 |
|
|
|
9,825 |
|
|
|
5,826 |
|
|
|
7,208 |
|
|
|
4,286 |
|
|
|
15,615 |
|
|
|
10,845 |
|
Pre-tax pre-provision net income |
|
$ |
41,129 |
|
|
$ |
42,063 |
|
|
$ |
37,559 |
|
|
$ |
34,637 |
|
|
$ |
32,448 |
|
|
$ |
83,192 |
|
|
$ |
66,366 |
|
Adjusted pre-tax pre-provision net income: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
Pre-tax pre-provision net income |
|
$ |
41,129 |
|
|
$ |
42,063 |
|
|
$ |
37,559 |
|
|
$ |
34,637 |
|
|
$ |
32,448 |
|
|
$ |
83,192 |
|
|
$ |
66,366 |
|
Add: Impairment charges on assets held for sale |
|
|
— |
|
|
|
20 |
|
|
|
372 |
|
|
|
— |
|
|
|
— |
|
|
|
20 |
|
|
|
— |
|
Add: Merger-related expenses |
|
|
1,391 |
|
|
|
489 |
|
|
|
538 |
|
|
|
— |
|
|
|
— |
|
|
|
1,880 |
|
|
|
— |
|
Adjusted pre-tax pre-provision net income |
|
$ |
42,520 |
|
|
$ |
42,572 |
|
|
$ |
38,469 |
|
|
$ |
34,637 |
|
|
$ |
32,448 |
|
|
$ |
85,092 |
|
|
$ |
66,366 |
|
Tax equivalent net interest income |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
Net interest income |
|
$ |
76,166 |
|
|
$ |
75,718 |
|
|
$ |
76,604 |
|
|
$ |
68,635 |
|
|
$ |
61,760 |
|
|
$ |
151,884 |
|
|
$ |
120,091 |
|
Add: Tax-equivalent adjustment |
|
|
207 |
|
|
|
208 |
|
|
|
214 |
|
|
|
228 |
|
|
|
237 |
|
|
|
415 |
|
|
|
473 |
|
Net interest income, fully taxable equivalent |
|
$ |
76,373 |
|
|
$ |
75,926 |
|
|
$ |
76,818 |
|
|
$ |
68,863 |
|
|
$ |
61,997 |
|
|
$ |
152,299 |
|
|
$ |
120,564 |
|
Total revenue: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
Net interest income |
|
$ |
76,166 |
|
|
$ |
75,718 |
|
|
$ |
76,604 |
|
|
$ |
68,635 |
|
|
$ |
61,760 |
|
|
$ |
151,884 |
|
|
$ |
120,091 |
|
Add: Non-interest income |
|
|
14,291 |
|
|
|
15,145 |
|
|
|
11,455 |
|
|
|
12,043 |
|
|
|
14,273 |
|
|
|
29,436 |
|
|
|
33,816 |
|
Total revenue |
|
$ |
90,457 |
|
|
$ |
90,863 |
|
|
$ |
88,059 |
|
|
$ |
80,678 |
|
|
$ |
76,033 |
|
|
$ |
181,320 |
|
|
$ |
153,907 |
|
Tangible common stockholders' equity: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
Total stockholders' equity |
|
$ |
813,942 |
|
|
$ |
795,650 |
|
|
$ |
765,816 |
|
|
$ |
735,805 |
|
|
$ |
755,648 |
|
|
$ |
813,942 |
|
|
$ |
755,648 |
|
Less: Preferred stock |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
Less: Goodwill and other intangibles |
|
|
155,977 |
|
|
|
157,432 |
|
|
|
158,887 |
|
|
|
160,484 |
|
|
|
162,094 |
|
|
|
155,977 |
|
|
|
162,094 |
|
Tangible common stockholders' equity |
|
$ |
657,965 |
|
|
$ |
638,218 |
|
|
$ |
606,929 |
|
|
$ |
575,321 |
|
|
$ |
593,554 |
|
|
$ |
657,965 |
|
|
$ |
593,554 |
|
Tangible assets: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
Total assets |
|
$ |
7,575,690 |
|
|
$ |
7,530,346 |
|
|
$ |
7,362,941 |
|
|
$ |
7,267,277 |
|
|
$ |
7,124,030 |
|
|
$ |
7,575,690 |
|
|
$ |
7,124,030 |
|
Less: Goodwill and other intangibles |
|
|
155,977 |
|
|
|
157,432 |
|
|
|
158,887 |
|
|
|
160,484 |
|
|
|
162,094 |
|
|
|
155,977 |
|
|
|
162,094 |
|
Tangible assets |
|
$ |
7,419,713 |
|
|
$ |
7,372,914 |
|
|
$ |
7,204,054 |
|
|
$ |
7,106,793 |
|
|
$ |
6,961,936 |
|
|
$ |
7,419,713 |
|
|
$ |
6,961,936 |
|
Average tangible common stockholders' |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
Average total stockholders' equity |
|
$ |
806,272 |
|
|
$ |
784,289 |
|
|
$ |
748,292 |
|
|
$ |
765,821 |
|
|
$ |
769,658 |
|
|
$ |
795,341 |
|
|
$ |
795,711 |
|
Less: Average preferred stock |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
4,959 |
|
Less: Average goodwill and other |
|
|
156,766 |
|
|
|
158,181 |
|
|
|
159,680 |
|
|
|
161,292 |
|
|
|
163,068 |
|
|
|
157,469 |
|
|
|
163,948 |
|
Average tangible common stockholders' |
|
$ |
649,506 |
|
|
$ |
626,108 |
|
|
$ |
588,612 |
|
|
$ |
604,529 |
|
|
$ |
606,590 |
|
|
$ |
637,872 |
|
|
$ |
626,804 |
|
Average tangible assets: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
Average total assets |
|
$ |
7,403,899 |
|
|
$ |
7,345,151 |
|
|
$ |
7,266,053 |
|
|
$ |
7,137,472 |
|
|
$ |
6,966,564 |
|
|
$ |
7,374,687 |
|
|
$ |
6,832,763 |
|
Less: Average goodwill and other |
|
|
156,766 |
|
|
|
158,181 |
|
|
|
159,680 |
|
|
|
161,292 |
|
|
|
163,068 |
|
|
|
157,469 |
|
|
|
163,948 |
|
Average tangible assets |
|
$ |
7,247,133 |
|
|
$ |
7,186,970 |
|
|
$ |
7,106,373 |
|
|
$ |
6,976,180 |
|
|
$ |
6,803,496 |
|
|
$ |
7,217,218 |
|
|
$ |
6,668,815 |
|
Tangible net income available to common |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
Net income available to common |
|
$ |
26,107 |
|
|
$ |
23,945 |
|
|
$ |
24,367 |
|
|
$ |
20,409 |
|
|
$ |
21,780 |
|
|
$ |
50,052 |
|
|
$ |
42,982 |
|
Add: After-tax intangible asset amortization |
|
|
1,067 |
|
|
|
1,066 |
|
|
|
1,170 |
|
|
|
1,181 |
|
|
|
1,369 |
|
|
|
2,133 |
|
|
|
2,539 |
|
Tangible net income available to common |
|
$ |
27,174 |
|
|
$ |
25,011 |
|
|
$ |
25,537 |
|
|
$ |
21,590 |
|
|
$ |
23,149 |
|
|
$ |
52,185 |
|
|
$ |
45,521 |
|
Adjusted tangible net income available |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
Tangible net income available to common |
|
$ |
27,174 |
|
|
$ |
25,011 |
|
|
$ |
25,537 |
|
|
$ |
21,590 |
|
|
$ |
23,149 |
|
|
$ |
52,185 |
|
|
$ |
45,521 |
|
Impairment charges on assets held for sale |
|
|
— |
|
|
|
20 |
|
|
|
372 |
|
|
|
— |
|
|
|
— |
|
|
|
20 |
|
|
|
— |
|
Merger-related expenses |
|
|
1,391 |
|
|
|
489 |
|
|
|
538 |
|
|
|
— |
|
|
|
— |
|
|
|
1,880 |
|
|
|
— |
|
Tax benefit on significant items |
|
|
(230 |
) |
|
|
(56 |
) |
|
|
(118 |
) |
|
|
— |
|
|
|
— |
|
|
|
(286 |
) |
|
|
— |
|
Adjusted tangible net income available to |
|
$ |
28,335 |
|
|
$ |
25,464 |
|
|
$ |
26,329 |
|
|
$ |
21,590 |
|
|
$ |
23,149 |
|
|
$ |
53,799 |
|
|
$ |
45,521 |
|
Byline Bancorp, Inc.
Page 17 of 17
BYLINE BANCORP, INC. AND SUBSIDIARIES
RECONCILIATION OF NON-GAAP FINANCIAL MEASURES (continued) (unaudited)
|
|
As of or For the Three Months Ended |
|
|
As of or For the Six Months Ended |
|
||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
Recast |
|
|
Recast |
|
|
|
|
|
Recast |
|
|||||||
(dollars in thousands, except share and per share |
|
June 30, |
|
|
March 31, |
|
|
December 31, |
|
|
September 30, |
|
|
June 30, |
|
|
June 30, |
|
|
June 30, |
|
|||||||
data, ratios annualized, where applicable) |
|
2023 |
|
|
2023 |
|
|
2022 |
|
|
2022 |
|
|
2022 |
|
|
2023 |
|
|
2022 |
|
|||||||
Pre-tax pre-provision return on average assets: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
Pre-tax pre-provision net income |
|
$ |
41,129 |
|
|
$ |
42,063 |
|
|
$ |
37,559 |
|
|
$ |
34,637 |
|
|
$ |
32,448 |
|
|
$ |
83,192 |
|
|
$ |
66,366 |
|
Average total assets |
|
|
7,403,899 |
|
|
|
7,345,151 |
|
|
|
7,266,053 |
|
|
|
7,137,472 |
|
|
|
6,966,564 |
|
|
|
7,374,687 |
|
|
|
6,832,763 |
|
Pre-tax pre-provision return on average assets |
|
|
2.23 |
% |
|
|
2.32 |
% |
|
|
2.05 |
% |
|
|
1.93 |
% |
|
|
1.87 |
% |
|
|
2.27 |
% |
|
|
1.96 |
% |
Adjusted pre-tax pre-provision return on average |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
Adjusted pre-tax pre-provision net income |
|
$ |
42,520 |
|
|
$ |
42,572 |
|
|
$ |
38,469 |
|
|
$ |
34,637 |
|
|
$ |
32,448 |
|
|
$ |
85,092 |
|
|
$ |
66,366 |
|
Average total assets |
|
|
7,403,899 |
|
|
|
7,345,151 |
|
|
|
7,266,053 |
|
|
|
7,137,472 |
|
|
|
6,966,564 |
|
|
|
7,374,687 |
|
|
|
6,832,763 |
|
Adjusted pre-tax pre-provision return on average |
|
|
2.30 |
% |
|
|
2.35 |
% |
|
|
2.10 |
% |
|
|
1.93 |
% |
|
|
1.87 |
% |
|
|
2.33 |
% |
|
|
1.96 |
% |
Net interest margin, fully taxable equivalent |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
Net interest income, fully taxable equivalent |
|
$ |
76,373 |
|
|
$ |
75,926 |
|
|
$ |
76,818 |
|
|
$ |
68,863 |
|
|
$ |
61,997 |
|
|
$ |
152,299 |
|
|
$ |
120,564 |
|
Total average interest-earning assets |
|
|
7,072,581 |
|
|
|
7,009,144 |
|
|
|
6,922,889 |
|
|
|
6,763,916 |
|
|
|
6,573,352 |
|
|
|
7,041,037 |
|
|
|
6,413,995 |
|
Net interest margin, fully taxable equivalent |
|
|
4.33 |
% |
|
|
4.39 |
% |
|
|
4.40 |
% |
|
|
4.04 |
% |
|
|
3.78 |
% |
|
|
4.36 |
% |
|
|
3.79 |
% |
Non-interest income to total revenues: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
Non-interest income |
|
$ |
14,291 |
|
|
$ |
15,145 |
|
|
$ |
11,455 |
|
|
$ |
12,043 |
|
|
$ |
14,273 |
|
|
$ |
29,436 |
|
|
$ |
33,816 |
|
Total revenues |
|
|
90,457 |
|
|
|
90,863 |
|
|
|
88,059 |
|
|
|
80,678 |
|
|
|
76,033 |
|
|
|
181,320 |
|
|
|
153,907 |
|
Non-interest income to total revenues |
|
|
15.80 |
% |
|
|
16.67 |
% |
|
|
13.01 |
% |
|
|
14.93 |
% |
|
|
18.77 |
% |
|
|
16.23 |
% |
|
|
21.97 |
% |
Adjusted non-interest expense to average assets: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
Adjusted non-interest expense |
|
$ |
47,937 |
|
|
$ |
48,291 |
|
|
$ |
49,590 |
|
|
$ |
46,041 |
|
|
$ |
43,585 |
|
|
$ |
96,228 |
|
|
$ |
87,541 |
|
Average total assets |
|
|
7,403,899 |
|
|
|
7,345,151 |
|
|
|
7,266,053 |
|
|
|
7,137,472 |
|
|
|
6,966,564 |
|
|
|
7,374,687 |
|
|
|
6,832,763 |
|
Adjusted non-interest expense to average assets |
|
|
2.60 |
% |
|
|
2.67 |
% |
|
|
2.71 |
% |
|
|
2.56 |
% |
|
|
2.51 |
% |
|
|
2.63 |
% |
|
|
2.58 |
% |
Adjusted efficiency ratio: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
Adjusted non-interest expense excluding |
|
$ |
46,482 |
|
|
$ |
46,836 |
|
|
$ |
47,994 |
|
|
$ |
44,430 |
|
|
$ |
41,717 |
|
|
$ |
93,318 |
|
|
$ |
84,077 |
|
Total revenues |
|
|
90,457 |
|
|
|
90,863 |
|
|
|
88,059 |
|
|
|
80,678 |
|
|
|
76,033 |
|
|
|
181,320 |
|
|
|
153,907 |
|
Adjusted efficiency ratio |
|
|
51.39 |
% |
|
|
51.54 |
% |
|
|
54.50 |
% |
|
|
55.07 |
% |
|
|
54.87 |
% |
|
|
51.47 |
% |
|
|
54.63 |
% |
Adjusted return on average assets: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
Adjusted net income |
|
$ |
27,268 |
|
|
$ |
24,398 |
|
|
$ |
25,159 |
|
|
$ |
20,409 |
|
|
$ |
21,780 |
|
|
$ |
51,666 |
|
|
$ |
43,178 |
|
Average total assets |
|
|
7,403,899 |
|
|
|
7,345,151 |
|
|
|
7,266,053 |
|
|
|
7,137,472 |
|
|
|
6,966,564 |
|
|
|
7,374,687 |
|
|
|
6,832,763 |
|
Adjusted return on average assets |
|
|
1.48 |
% |
|
|
1.35 |
% |
|
|
1.37 |
% |
|
|
1.13 |
% |
|
|
1.25 |
% |
|
|
1.41 |
% |
|
|
1.27 |
% |
Adjusted return on average stockholders' equity: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
Adjusted net income |
|
$ |
27,268 |
|
|
$ |
24,398 |
|
|
$ |
25,159 |
|
|
$ |
20,409 |
|
|
$ |
21,780 |
|
|
$ |
51,666 |
|
|
$ |
43,178 |
|
Average stockholders' equity |
|
|
806,272 |
|
|
|
784,289 |
|
|
|
748,292 |
|
|
|
765,821 |
|
|
|
769,658 |
|
|
|
795,341 |
|
|
|
795,711 |
|
Adjusted return on average stockholders' equity |
|
|
13.56 |
% |
|
|
12.62 |
% |
|
|
13.34 |
% |
|
|
10.57 |
% |
|
|
11.35 |
% |
|
|
13.10 |
% |
|
|
10.94 |
% |
Tangible common equity to tangible assets: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
Tangible common equity |
|
$ |
657,965 |
|
|
$ |
638,218 |
|
|
$ |
606,929 |
|
|
$ |
575,321 |
|
|
$ |
593,554 |
|
|
$ |
657,965 |
|
|
$ |
593,554 |
|
Tangible assets |
|
|
7,419,713 |
|
|
|
7,372,914 |
|
|
|
7,204,054 |
|
|
|
7,106,793 |
|
|
|
6,961,936 |
|
|
|
7,419,713 |
|
|
|
6,961,936 |
|
Tangible common equity to tangible assets |
|
|
8.87 |
% |
|
|
8.66 |
% |
|
|
8.42 |
% |
|
|
8.10 |
% |
|
|
8.53 |
% |
|
|
8.87 |
% |
|
|
8.53 |
% |
Return on average tangible common stockholders' |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
Tangible net income available to common |
|
$ |
27,174 |
|
|
$ |
25,011 |
|
|
$ |
25,537 |
|
|
$ |
21,590 |
|
|
$ |
23,149 |
|
|
$ |
52,185 |
|
|
$ |
45,521 |
|
Average tangible common stockholders' equity |
|
|
649,506 |
|
|
|
626,108 |
|
|
|
588,612 |
|
|
|
604,529 |
|
|
|
606,590 |
|
|
|
637,872 |
|
|
|
626,804 |
|
Return on average tangible common |
|
|
16.78 |
% |
|
|
16.20 |
% |
|
|
17.21 |
% |
|
|
14.17 |
% |
|
|
15.31 |
% |
|
|
16.50 |
% |
|
|
14.65 |
% |
Adjusted return on average tangible common |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
Adjusted tangible net income available to |
|
$ |
28,335 |
|
|
$ |
25,464 |
|
|
$ |
26,329 |
|
|
$ |
21,590 |
|
|
$ |
23,149 |
|
|
$ |
53,799 |
|
|
$ |
45,521 |
|
Average tangible common stockholders' equity |
|
|
649,506 |
|
|
|
626,108 |
|
|
|
588,612 |
|
|
|
604,529 |
|
|
|
606,590 |
|
|
|
637,872 |
|
|
|
626,804 |
|
Adjusted return on average tangible common |
|
|
17.50 |
% |
|
|
16.49 |
% |
|
|
17.75 |
% |
|
|
14.17 |
% |
|
|
15.31 |
% |
|
|
17.01 |
% |
|
|
14.65 |
% |
Tangible book value per share: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
Tangible common equity |
|
$ |
657,965 |
|
|
$ |
638,218 |
|
|
$ |
606,929 |
|
|
$ |
575,321 |
|
|
$ |
593,554 |
|
|
$ |
657,965 |
|
|
$ |
593,554 |
|
Common shares outstanding |
|
|
37,752,002 |
|
|
|
37,713,427 |
|
|
|
37,492,775 |
|
|
|
37,465,902 |
|
|
|
37,669,102 |
|
|
|
37,752,002 |
|
|
|
37,669,102 |
|
Tangible book value per share |
|
$ |
17.43 |
|
|
$ |
16.92 |
|
|
$ |
16.19 |
|
|
$ |
15.36 |
|
|
$ |
15.76 |
|
|
$ |
17.43 |
|
|
$ |
15.76 |
|
2Q23 Earnings Presentation Exhibit 99.2
2 Forward-Looking Statements 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 judgement 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. Due to rounding, numbers presented throughout this document may not add up precisely to the totals provided and percentages may not precisely reflect the absolute figures. Current Expected Credit Loss (“CECL”) Adoption On December 31, 2022, the Company adopted CECL and applied it retrospectively to the period beginning January 1, 2022 using the modified retrospective method of accounting. Results for reporting periods beginning after September 30, 2022 are presented under the new standard, while prior quarters previously reported are recast as if the new standard had been applied since January 1, 2022.
Deposits up $104.4 million or 7.2% annualized Average deposits up $347.2 million or 6.3% YoY Uninsured deposit ratio declined to 25.9% Loan and lease growth of 3.8% annualized Average loans up $528.0 million or 10.5% YoY CET1 of $751.4 million; RWA of $7.1 billion as of 2Q23 Cash + AFS Securities of $1.4 billion Kroll Bond Rating Agency, LLC reaffirmed ratings and positive outlook ROAA & ROTCE(1) PTPP Net Income & EPS Second Quarter 2023 Highlights $0.70 per diluted share $26.1 million 16.78% ROTCE 1.41% ROAA 2.23% PTPP ROA $41.1 million Organic Growth & Profitability Strong Balance Sheet Disciplined Credit & Capital Profile Revenue of $90.5 million, up 19%; PTPP of $41.1 million, up 27%; EPS of $0.70, up 21% YoY Net interest income up $14.4 million or 23% YoY Net interest margin (FTE)(1) stood at 4.33% Loan yields expanded 35 bps Deposit costs increased 55 bps Operating expense of $49.3 million and Efficiency ratio of 52.9% Adjusted operating expenses of $47.9 million and Efficiency ratio of 51.4% 3 Represents a non-GAAP financial measure. See “Non-GAAP Reconciliation” in the appendix. Credit quality trends remained stable QoQ with: NCOs of 0.31%, up 22 bps NPA/Assets of 0.54%, down 13 bps 30+ DLQs of 0.17%, down 9 bps ACL as percent of loans and leases of 1.66%, up QoQ Building capital QoQ with: CET1 of 10.58%, up 31 bps Total Capital of 13.52%, up 33 bps TCE Ratio including HTM(1) of 8.87%, up 21 bps
Loan and Lease Trends ($ in millions) Total Loans & Leases and Average Yield Portfolio Composition Total loans and leases were $5.6 billion at 2Q23, an increase of $52.8 million, or 3.8% annualized Originated $312.1 million in new loans, net of loan sales in 2Q23 compared to $249.4 million in 1Q23 Production driven by commercial and lease originations of $102.9 million and $88.8 million respectively Payoff activity increased by $25.0 million from 1Q23 Cumulative Loan Beta(1): 44% Highlights Utilization Rates 55% LTM Average Originations and Payoffs Cumulative Beta calculated as the change in yield on loans and leases from 4Q21 to 2Q23 divided by the change in average Fed Funds from 4Q21 to 2Q23. 4
(1) $ Balance % of Portfolio Unguaranteed $383.7 6.9% Guaranteed 88.9 1.6% Total SBA 7(a) Loans $472.6 8.5% Unguaranteed $37.0 0.7% Guaranteed 21.5 0.4% Total USDA Loans $58.4 1.0% Unguaranteed Loan Portfolio by Industry A leading SBA 7(a) lender as of June 30, 2023 Awarded top SBA 7(a) lender in Illinois for the 14th consecutive year Closed $140.5 million in loan commitments in 2Q23 SBA 7(a) portfolio $472.6 million, down $3.3 million from 1Q23 ACL/Unguaranteed loan balance ~9.1% $1.7 billion in serviced government guaranteed loans for investors in 2Q23 Government-Guaranteed Lending ($ in millions) On Balance Sheet SBA 7(a) & USDA Loans Total SBC Closed Loan Commitments Highlights Represents sectors with less than 5% of the total portfolio. 5
Cost of Interest Bearing Deposits Total deposits were $5.9 billion, up 7.2% annualized from 1Q23 Total average deposits up 1.7% QoQ Commercial deposits accounted for 48.3% of total deposits and represent 74.7% of all non-interest-bearing deposits Cost of deposits increased 55 bps in 2Q23, due to rate increases and mix changes Cumulative total deposit beta remains low at ~32% since the beginning of the current tightening cycle Deposit Trends ($ in millions) Deposit Composition Highlights Average Non-Interest Bearing Deposits Deposit Beta(1) Interest-Bearing Deposits: 47% Total Deposits: 32% 6 Beta calculation is based on change in deposit cost divided by change in Fed Funds from 4Q21 to 2Q23.
Net interest income was $76.2 million, up 0.6% from 1Q23 Net interest margin decreased 6 basis points from 1Q23 to 4.32% Loan and lease yield of 7.18%, up 35 basis points from 1Q23 Interest Rate Sensitivity $150 million of cash flow hedges went effective in 2Q23 $50 million of pay-fixed: rate of 1.31%; WAM ~3.8 years $100 million of receive-fixed: rate of 7.44%; WAM ~3.3 years +$2.5 million in net interest income per 25 bps in Fed tightening NIM Bridge Net Interest Income and Net Interest Margin Trends Net Interest Income Highlights NIM, Yields, and Costs 7 Repricing Mix
Government Guaranteed Loan Sales $85.9 million of guaranteed loans sold in 2Q23 Loans held for sale stood at $26.0 million in 2Q23 Non-interest income was $14.3 million, down 5.6% from 1Q23 $865,000 FV mark on loan servicing asset charge due to increased prepayments Non-interest income remained stable QoQ, excluding FV mark on loan servicing asset Volume Sold and Average Net Premiums Non-Interest Income Trends ($ in millions) Total Non-Interest Income Highlights Net Gains on Sales of Loans 8
(1) Non-interest expenses increased to $49.3 million from $48.8 million in 1Q23, primarily attributable to: Increase in data processing / legal, audit and other professional fees related to acquisition activities Increase in marketing expenses due to deposit gathering initiatives Decrease in salaries and employee benefits mainly due to lower payroll taxes and higher deferred salary costs related to loan originations Efficiency ratio stood at 52.92% at 2Q23 Efficiency Ratio Non-Interest Expense Trends ($ in millions) Non-Interest Expense Highlights Non-Interest Expense Bridge 9 Represents a non-GAAP financial measure. See “Non-GAAP Reconciliation” in the appendix. ($0.8) ($0.5) $0.9 $0.7 $0.1
Note: Delinquencies represent accruing loans and leases past due 30 days or more. Delinquencies to Total Loans and Leases represent delinquencies divided by period end loans and leases. Delinquencies Asset Quality Trends ($ in millions) Net Charge-offs NPLs / Total Loans & Leases 10 Allowance for Credit Losses (ACL)
Median: 62% Percent of Insured Deposits(2) Liquidity Position Strong Liquidity and Securities Portfolio Cash and cash equivalents of $320.2 million $1.1 billion investment portfolio (~99.8% AFS) $1.7 billion of available borrowing capacity Liquidity coverage of uninsured deposits ~132% as of quarter end Loans/Deposits ratio down slightly at 94.6% QoQ Uninsured Deposits declined to 25.9% and trends well below all peer bank averages % of Uninsured Deposits Industry Comparisons(1) >$500B $250B - $500B $100B - $250B $50B - $100B $10B - $50B $1B - $10B Median 43.5% 36.9% 36.4% 44.2% 36.2% 29.9% Byline Bank 25.9% 25.9% 25.9% 25.9% 25.9% 25.9% 11 Source: SNL Financial, and company filings. Financial data as of quarter ended March 31, 2023 or most recent available. Source: Company’s 1Q23 Form 10-Q | Calculation: (total deposits uninsured deposits) / total consolidated deposits | Byline 2023 Proxy Peer Group. AFS Portfolio by Type No outstanding Discount Window or Bank Term Funding borrowings HTM portfolio of $2.1 million ($26,000 in unrealized losses) Securities portfolio duration: 5.4 years; net of hedges: ~4.3 years Securities portfolio annual cash flow: ~$130 million AOCI / TCE(1): ~17.5% Highlights
(2) (1) Return on Average Tangible Common Equity Strong Capital Position Capital Ratios 12 As reported prior to CECL adoption. Represents a non-GAAP financial measure. See “Non-GAAP Reconciliation” in the appendix. Strong Capital Base Common Equity Tier 1 Capital Priorities: TCE operating target range is between 8% and 9%: currently at 8.87% $813.9 million total stockholders’ equity $450 million of balance sheet hedges to protect market value risk 1. Fund Organic Growth 2. Dividend 3. M&A 4. Buyback
Our Strategy Remains Consistent 13 Maintain Balance Sheet Strength Continue to Invest in the Business Capitalize on Market Opportunities Deliver Strong Financial Results Grow our Commercial Client Franchise 1 2 3 4 5 Leverage our Capabilities 6 Differentiated approach to grow loans and deposits organically in targeted market segments Maintain a strong balance sheet, ample capital flexibility and strong asset quality Continue to invest in digital capabilities to improve the customer experience and gain operational efficiencies Attract high quality talent to the organization and pursue opportunistic M&A opportunities Generate consistently strong financial results for our stockholders Leverage all our capabilities to deepen share of wallet and acquire new customers
2Q23 Earnings Presentation Appendix
Granular Deposit Base 15 Consumer Deposits, $3.1 billion Commercial Deposits, $2.8 billion ~75% of Total Deposits are FDIC Insured with limited concentration and granular customer base providing a stable source of funding Consumer Deposits(1) $3.2 billion at 6/30/23 Granular Deposit Base ~$25,000 Average Account Balance Customer Base ~105,000 Consumer Accounts Total Franchise 38 Branches Commercial Deposits $2.7 billion at 6/30/23 Granular Deposit Base ~$115,000 Average Account Balance Customer Base ~25,000 Commercial Accounts Consumer Deposits, $3.2 billion Commercial Deposits, $2.7 billion Uninsured 8.0% d Total Deposits $5.9 Billion as of 6/30/23 Core banking footprint in key urban MSAs in Wisconsin and a broad footprint in Chicago, IL A strength of our franchise is our well diversified deposit base Excludes brokered deposits.
CRE Portfolio: Office Represents 3.1% of Total Loans 16 Non-Owner Occupied Commercial Real Estate Portfolio d Total Loans & Leases $5.6 Billion as of 6/30/23 ($ in millions) 6/30/23 Multifamily $453.9 30.2% Industrial / Warehouse 450.6 30.0% Office 171.2 11.4% Retail 139.9 9.3% Senior Housing / Healthcare 37.5 2.5% Mixed Use 20.9 1.4% Hotel / Motel 13.8 0.9% Other 215.1 14.3% Total $1,502.9 27.0% % of NOO CRE Loans Note: Non-Owner Occupied CRE Portfolio includes construction, land, multi-family and non-owner occupied (NOO).
Office CRE Portfolio: Diversified Tenants and Markets NCOs / Average loans represents net charge-offs to average loans for the last twelve-month period. Tenant Classification ($ in millions) 6/30/23 Illinois $85.4 North Carolina 26.0 Wisconsin 19.6 New Jersey 10.8 Ohio 10.4 Florida 9.2 Minnesota 4.6 New Mexico 2.3 West Virginia 1.1 Michigan 1.0 Tennessee 0.8 Total Office $171.2 6/30/23 3/31/23 Avg. Commitment $3.6 million $3.4 million ACL % 1.6% 1.1% NCO %(1) 0.36% 0.00% 30+ DLQ % 0.0% 1.4% NPL % 2.7% 3.1% Criticized % 7% 7% CRE Office: Geographic Mix by State Office Portfolio Metrics Office Portfolio Market Type 17
As of or For the Three Months Ended Recast Recast June 30, March 31, December 31, September 30, June 30, (dollars in thousands, except per share data) 2023 2023 2022 2022 2022 Income Statement Net interest income $ 76,166 $ 75,718 $ 76,604 $ 68,635 $ 61,760 Provision (recapture) for credit losses 5,790 9,825 5,826 7,208 4,286 Non-interest income 14,291 15,145 11,455 12,043 14,273 Non-interest expense 49,328 48,800 50,500 46,041 43,585 Income before provision for income taxes 35,339 32,238 31,733 27,429 28,162 Provision for income taxes 9,232 8,293 7,366 7,020 6,382 Net income 26,107 23,945 24,367 20,409 21,780 Dividends on preferred shares — — — — — Net income available to common stockholders $ 26,107 $ 23,945 $ 24,367 $ 20,409 $ 21,780 Diluted earnings per common share(1) $ 0.70 $ 0.64 $ 0.65 $ 0.55 $ 0.58 Balance Sheet Total loans and leases HFI $ 5,570,517 $ 5,515,332 $ 5,421,258 $ 5,275,126 $ 5,167,716 Total deposits 5,917,092 5,812,652 5,695,121 5,612,456 5,388,377 Tangible common equity(1) 657,965 638,218 606,929 575,321 593,554 Balance Sheet Metrics Loans and leases / total deposits 94.58% 95.37% 96.03% 94.59% 96.23% Tangible common equity / tangible assets(1) 8.87% 8.66% 8.42% 8.10% 8.53% Key Performance Ratios Net interest margin 4.32% 4.38% 4.39% 4.03% 3.77% Efficiency ratio 52.92% 52.10% 55.53% 55.07% 54.87% Adjusted efficiency ratio(1) 51.39% 51.54% 54.50% 55.07% 54.87% Non-interest income to total revenues 15.80% 16.67% 13.01% 14.93% 18.77% Non-interest expense to average assets 2.67% 2.69% 2.76% 2.56% 2.51% Return on average assets 1.41% 1.32% 1.33% 1.13% 1.25% Adjusted return on average assets(1) 1.48% 1.35% 1.37% 1.13% 1.25% Pre-tax pre-provision return on average assets (1) 2.23% 2.32% 2.05% 1.93% 1.87% Dividend payout ratio on common stock 12.86% 14.06% 13.85% 16.36% 15.52% Tangible book value per common share(1) $ 17.43 $ 16.92 $ 16.19 $ 15.36 $ 15.76 Five Quarter Financial Summary 18 Represents a non-GAAP financial measure. See “Non-GAAP Reconciliation” in the appendix.
Non-GAAP Reconciliation 19 As of or For the Three Months Ended Recast Recast (dollars in thousands, except per share data) June 30, 2023 March 31, 2023 December 31, 2022 September 30, 2022 June 30, 2022 Net income and earnings per share excluding significant items Reported Net Income $ 26,107 $ 23,945 $ 24,367 $ 20,409 $ 21,780 Significant items: Impairment charges on assets held for sale — 20 372 — — Merger-related expenses 1,391 489 538 — — Tax benefit (230) (56) (118) — — Adjusted Net Income $ 27,268 $ 24,398 $ 25,159 $ 20,409 $ 21,780 Reported Diluted Earnings per Share $ 0.70 $ 0.64 $ 0.65 $ 0.55 $ 0.58 Significant items: Impairment charges on assets held for sale — — 0.01 — — Merger-related expenses 0.04 0.01 0.01 — — Tax benefit (0.01) — — — — Adjusted Diluted Earnings per Share $ 0.73 $ 0.65 $ 0.67 $ 0.55 $ 0.58
Non-GAAP Reconciliation (continued) 20 As of or For the Three Months Ended Recast Recast Recast (dollars in thousands) June 30, 2023 March 31, 2023 December 31, 2022 September 30, 2022 June 30, 2022 Adjusted non-interest expense: Non-interest expense $ 49,328 $ 48,800 $ 50,500 $ 46,041 $ 43,585 Less: Significant items Impairment charges on assets held for sale — 20 372 — — Merger-related expenses 1,391 489 538 — — Adjusted non-interest expense $ 47,937 $ 48,291 $ 49,590 $ 46,041 $ 43,585 Adjusted non-interest expense ex. amortization of intangible assets: Adjusted non-interest expense $ 47,937 $ 48,291 $ 49,590 $ 46,041 $ 43,585 Less: Amortization of intangible assets 1,455 1,455 1,596 1,611 1,868 Adjusted non-interest expense ex. amortization of intangible assets $ 46,482 $ 46,836 $ 47,994 $ 44,430 $ 41,717 Pre-tax pre-provision net income: Pre-tax income $ 35,339 $ 32,238 $ 31,733 $ 27,429 $ 28,162 Add: Provision for loan and lease losses 5,790 9,825 5,826 7,208 4,286 Pre-tax pre-provision net income $ 41,129 $ 42,063 $ 37,559 $ 34,637 $ 32,448 Adjusted pre-tax pre-provision net income: Pre-tax pre-provision net income $ 41,129 $ 42,063 $ 37,559 $ 34,637 $ 32,448 Add: Impairment charges on assets held for sale — 20 372 — — Add: Merger-related expenses 1,391 489 538 — — Adjusted pre-tax pre-provision net income $ 42,520 $ 42,572 $ 38,469 $ 34,637 $ 32,448 Tax Equivalent Net Interest Income Net interest income $ 76,166 $ 75,718 $ 76,604 $ 68,635 $ 61,760 Add: Tax-equivalent adjustment 207 208 214 228 237 Net interest income, fully taxable equivalent $ 76,373 $ 75,926 $ 76,818 $ 68,863 $ 61,997 Total revenues: Net interest income $ 76,166 $ 75,718 $ 76,604 $ 68,635 $ 61,760 Add: Non-interest income 14,291 15,145 11,455 12,043 14,273 Total revenues $ 90,457 $ 90,863 $ 88,059 $ 80,678 $ 76,033
Non-GAAP Reconciliation (continued) 21 As of or For the Three Months Ended Recast Recast (dollars in thousands) June 30, 2023 March 31, 2023 December 31, 2022 September30, 2022 June 30, 2022 Tangible common stockholders' equity: Total stockholders' equity $ 813,942 $ 795,650 $ 765,816 $ 735,805 $ 755,648 Less: Goodwill and other intangibles 155,977 157,432 158,887 160,484 162,094 Tangible common stockholders' equity $ 657,965 $ 638,218 $ 606,929 $ 575,321 $ 593,554 Tangible assets: Total assets $ 7,575,690 $ 7,530,346 $ 7,362,941 $ 7,267,277 $ 7,124,030 Less: Goodwill and other intangibles 155,977 157,432 158,887 160,484 162,094 Tangible assets $ 7,419,713 $ 7,372,914 $ 7,204,054 $ 7,106,793 $ 6,961,936 Tangible assets, excluding accumulated other comprehensive loss: Tangible assets $ 7,419,713 $ 7,372,914 $ 7,204,054 $ 7,106,793 $ 6,961,936 Less: Accumulated other comprehensive loss (114,862) (108,142) (117,550) (124,898) (91,262) Tangible assets, excluding accumulated other comprehensive loss: $ 7,534,575 $ 7,481,056 $ 7,321,604 $ 7,231,691 $ 7,053,198 Tangible common stockholders' equity, excluding accumulated other comprehensive loss Tangible common stockholders' equity $ 657,965 $ 638,218 $ 606,929 $ 575,321 $ 593,554 Less: Accumulated other comprehensive loss (114,862) (108,142) (117,550) (124,898) (91,262) Tangible common stockholders' equity, excluding accumulated other comprehensive loss $ 772,827 $ 746,360 $ 724,479 $ 700,219 $ 684,816 Average tangible common stockholders' equity: Average total stockholders' equity $ 806,272 $ 784,289 $ 748,292 $ 765,821 $ 769,658 Less: Average goodwill and other intangibles 156,766 158,181 159,680 161,292 163,068 Average tangible common stockholders' equity $ 649,506 $ 626,108 $ 588,612 $ 604,529 $ 606,590 Average tangible assets: Average total assets $ 7,403,899 $ 7,345,151 $ 7,266,053 $ 7,137,472 $ 6,966,564 Less: Average goodwill and other intangibles 156,766 158,181 159,680 161,292 163,068 Average tangible assets $ 7,247,133 $ 7,186,970 $ 7,106,373 $ 6,976,180 $ 6,803,496 Tangible net income available to common stockholders: Net income available to common stockholders $ 26,107 $ 23,945 $ 24,367 $ 20,409 $ 21,780 Add: After-tax intangible asset amortization 1,067 1,066 1,170 1,181 1,369 Tangible net income available to common stockholders $ 27,174 $ 25,011 $ 25,537 $ 21,590 $ 23,149 Adjusted tangible net income available to common stockholders: Tangible net income available to common stockholders $ 27,174 $ 25,011 $ 25,537 $ 21,590 $ 23,149 Impairment charges on assets held for sale — 20 372 — — Merger-related expenses 1,391 489 538 — — Tax benefit on significant items (230) (56) (118) — — Adjusted tangible net income available to common stockholders $ 28,335 $ 25,464 $ 26,329 $ 21,590 $ 23,149
Non-GAAP Reconciliation (continued) 22 As of or For the Three Months Ended Recast Recast Recast (dollars in thousands, except share and per share data, ratios annualized, where applicable) June 30, 2023 March 31, 2023 December 31, 2022 September 30, 2022 June 30, 2022 Pre-tax pre-provision return on average assets: Pre-tax pre-provision net income $ 41,129 $ 42,063 $ 37,559 $ 34,637 $ 32,448 Average total assets 7,403,899 7,345,151 7,266,053 7,137,472 6,966,564 Pre-tax pre-provision return on average assets 2.23% 2.32% 2.05% 1.93% 1.87% Adjusted pre-tax pre-provision return on average assets: Adjusted pre-tax pre-provision net income $ 42,520 $ 42,572 $ 38,469 $ 34,637 $ 32,448 Average total assets 7,403,899 7,345,151 7,266,053 7,137,472 6,966,564 Adjusted pre-tax pre-provision return on average assets 2.30% 2.35% 2.10% 1.93% 1.87% Net interest margin, fully taxable equivalent Net interest income, fully taxable equivalent $ 76,373 $ 75,926 $ 76,818 $ 68,863 $ 61,997 Total average interest-earning assets 7,072,581 7,009,144 6,922,889 6,763,916 6,573,352 Net interest margin, fully taxable equivalent 4.33% 4.39% 4.40% 4.04% 3.78% Non-interest income to total revenues: Non-interest income $ 14,291 $ 15,145 $ 11,455 $ 12,043 $ 14,273 Total revenues 90,457 90,863 88,059 80,678 76,033 Non-interest income to total revenues 15.80% 16.67% 13.01% 14.93% 18.77% Adjusted non-interest expense to average assets: Adjusted non-interest expense $ 47,937 $ 48,291 $ 49,590 $ 46,041 $ 43,585 Average total assets 7,403,899 7,345,151 7,266,053 7,137,472 6,966,564 Adjusted non-interest expense to average assets 2.60% 2.67% 2.71% 2.56% 2.51% Adjusted efficiency ratio: Adjusted non-interest expense excluding amortization of intangible assets $ 46,482 $ 46,836 $ 47,994 $ 44,430 $ 41,717 Total revenues 90,457 90,863 88,059 80,678 76,033 Adjusted efficiency ratio 51.39% 51.54% 54.50% 55.07% 54.87% Adjusted return on average assets: Adjusted net income $ 27,268 $ 24,398 $ 25,159 $ 20,409 $ 21,780 Average total assets 7,403,899 7,345,151 7,266,053 7,137,472 6,966,564 Adjusted return on average assets 1.48% 1.35% 1.37% 1.13% 1.25% Adjusted return on average stockholders' equity: Adjusted net income $ 27,268 $ 24,398 $ 25,159 $ 20,409 $ 21,780 Average stockholders' equity 806,272 784,289 748,292 765,821 769,658 Adjusted return on average stockholders' equity 13.56% 12.62% 13.34% 10.57% 11.35%
Non-GAAP Reconciliation (continued) 23 As of or For the Three Months Ended Recast Recast Recast June 30, 2023 March 31, 2023 December 31, 2022 September 30, 2022 June 30, 2022 Tangible common equity to tangible assets: Tangible common equity $ 657,965 $ 638,218 $ 606,929 $ 575,321 $ 593,554 Tangible assets 7,419,713 7,372,914 7,204,054 7,106,793 6,961,936 Tangible common equity to tangible assets 8.87% 8.66% 8.42% 8.10% 8.53% Tangible common stockholders' equity, excluding accumulated other comprehensive loss to tangible assets, excluding accumulated other comprehensive loss Tangible common stockholders' equity, excluding accumulated other comprehensive loss $ 772,827 $ 746,360 $ 724,479 $ 700,219 $ 684,816 Tangible assets, excluding accumulated other comprehensive loss: 7,534,575 7,481,056 7,321,604 7,231,691 7,053,198 Tangible common stockholders' equity, excluding accumulated other comprehensive loss to tangible assets, excluding accumulated other comprehensive loss 10.26% 9.98% 9.90% 9.68% 9.71% Return on average tangible common stockholders' equity: Tangible net income available to common stockholders $ 27,174 $ 25,011 $ 25,537 $ 21,590 $ 23,149 Average tangible common stockholders' equity 649,506 626,108 588,612 604,529 606,590 Return on average tangible common stockholders' equity 16.78% 16.20% 17.21% 14.17% 15.31% Adjusted return on average tangible common stockholders' equity: Adjusted tangible net income available to common stockholders $ 28,335 $ 25,464 $ 26,329 $ 21,590 $ 23,149 Average tangible common stockholders' equity 649,506 626,108 588,612 604,529 606,590 Adjusted return on average tangible common stockholders' equity 17.50% 16.49% 17.75% 14.17% 15.31% Tangible book value per share: Tangible common equity $ 657,965 $ 638,218 $ 606,929 $ 575,321 $ 593,554 Common shares outstanding 37,752,002 37,713,427 37,492,775 37,465,902 37,669,102 Tangible book value per share $ 17.43 $ 16.92 $ 16.19 $ 15.36 $ 15.76 Accumulated other comprehensive loss to tangible common equity: Accumulated other comprehensive loss $ 114,862 $ 108,142 $ 117,550 $ 124,898 $ 91,262 Tangible common equity 657,965 638,218 606,929 575,321 593,554 Accumulated other comprehensive loss to tangible common equity 17.5% 16.9% 19.4% 21.7% 15.4%
Document and Entity Information |
Jul. 27, 2023 |
---|---|
Cover [Abstract] | |
Document Type | 8-K |
Amendment Flag | false |
Document Period End Date | Jul. 27, 2023 |
Entity Registrant Name | BYLINE BANCORP, INC. |
Entity Central Index Key | 0001702750 |
Entity Emerging Growth Company | false |
Entity File Number | 001-38139 |
Entity Incorporation, State or Country Code | DE |
Entity Tax Identification Number | 36-3012593 |
Entity Address, Address Line One | 180 North LaSalle Street |
Entity Address, Address Line Two | Suite 300 |
Entity Address, City or Town | Chicago |
Entity Address, State or Province | IL |
Entity Address, Postal Zip Code | 60601 |
City Area Code | 773 |
Local Phone Number | 244-7000 |
Written Communications | false |
Soliciting Material | false |
Pre-commencement Tender Offer | false |
Pre-commencement Issuer Tender Offer | false |
Title of each class | Common Stock |
Trading Symbol | BY |
Name of each exchange on which registered | NYSE |
1 Year Byline Bancorp Chart |
1 Month Byline Bancorp Chart |
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