Financial News
Byline Bancorp, Inc. Reports Third Quarter 2023 Financial Results
Net income of $28.2 million, $0.65 diluted earnings per share
Byline Bancorp, Inc. (NYSE: BY), today reported:
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For the quarter |
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Third Quarter Highlights |
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3Q23 |
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2Q23 |
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3Q222 |
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Financial Results (in thousands) |
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(compared to 2Q23) |
Net interest income |
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$ |
92,452 |
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$ |
76,166 |
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$ |
68,635 |
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Completed the acquisition and integration of Inland Bancorp, Inc. |
Non-interest income |
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12,376 |
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14,291 |
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12,043 |
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Total Revenue1 |
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104,828 |
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90,457 |
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80,678 |
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Noninterest expense |
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57,891 |
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49,328 |
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46,041 |
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Top Illinois SBA 7(a) lender for 15th consecutive year |
Pre-tax pre-provision net income (PTPP)1 |
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46,937 |
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41,129 |
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34,637 |
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Provision for credit losses |
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8,803 |
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5,790 |
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7,208 |
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Provision for income taxes |
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9,912 |
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9,232 |
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7,020 |
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Income Statement |
Net Income |
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$ |
28,222 |
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$ |
26,107 |
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$ |
20,409 |
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• NIM expanded 14 bps |
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Per Share |
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• Adjusted net income1 of $33.3 million, or |
Diluted EPS |
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$ |
0.65 |
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$ |
0.70 |
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$ |
0.55 |
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$0.77 per adjusted diluted share1 |
Dividends declared per common share |
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0.09 |
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0.09 |
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0.09 |
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Book value |
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21.04 |
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21.58 |
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19.64 |
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• PTPP1 of $46.9 million, increase of 14.1% |
Tangible book value per share1 |
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16.35 |
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17.43 |
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15.36 |
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• Adjusted efficiency ratio1 of 47.35% |
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Balance Sheet & Credit Quality |
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Total loans and leases |
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$ |
6,620,602 |
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$ |
5,596,512 |
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$ |
5,309,101 |
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Balance Sheet |
Total deposits |
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6,953,690 |
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5,917,092 |
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5,612,456 |
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• Total assets of $8.9 billion |
Net charge-offs |
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5,430 |
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4,267 |
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1,791 |
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Allowance for credit losses (ACL) to total loans and |
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1.60% |
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1.66% |
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1.51% |
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• Average total loan and lease growth 17.1% |
leases held for investment |
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Select Ratios |
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• Average total deposit growth 18.6% |
Efficiency ratio1 |
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53.75% |
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52.92% |
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55.07% |
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Return on average assets (ROAA) |
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1.30% |
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1.41% |
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1.13% |
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• Credit quality metrics in line with |
Return on average stockholders' equity |
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12.11% |
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12.99% |
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10.57% |
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expectations; through-the-cycle approach |
Return on average tangible common equity1 |
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16.15% |
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16.78% |
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14.17% |
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to credit risk management |
Net Interest Margin (NIM) |
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4.46% |
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4.32% |
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4.03% |
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Tangible common equity to tangible assets1 |
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8.18% |
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8.87% |
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8.10% |
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• Regulatory capital ratios remain solid |
Common Equity Tier 1 |
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10.08% |
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10.58% |
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10.24% |
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(1) |
Represents non-GAAP financial measures. See “Reconciliation of non-GAAP Financial Measures” for a reconciliation to the most directly comparable GAAP financial measure. |
(2) |
Recast due to the adoption of ASU 2016-13 Financial Instruments - Credit Losses on December 31, 2022, which was applied retrospectively to January 1, 2022. Refer to our Annual Report on Form 10-K for the year ended December 31, 2022 for additional information on the adoption of the standard. |
CEO/President Commentary |
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Roberto R. Herencia, Executive Chairman and CEO of Byline Bancorp, commented, “We successfully completed the core system conversion and integration of our recent acquisition of Inland Bancorp, which we believe has strengthened the return profile of the company. With the expansion of our footprint and the continued execution of our strategic priorities, we see opportunities to leverage our products and services, and deliver enhanced stockholder value for years to come.”
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STATEMENTS OF OPERATIONS HIGHLIGHTS
Net Interest Income
Net interest income for the third quarter of 2023 was $92.5 million, an increase of $16.3 million, or 21.4%, from the second quarter of 2023. The increase in net interest income was primarily due to an increase of $26.3 million in interest income and fees on loans and leases due to loans acquired and higher yields; partially offset by an increase of $12.4 million in deposit interest expense due to deposits assumed and higher rates on deposits.
Tax-equivalent net interest margin1 for the third quarter of 2023 was 4.47%, an increase of 14 basis points compared to the second quarter of 2023. Total net loan accretion income impact on the margin contributed 50 basis points to the net interest margin for the third quarter of 2023 compared to three basis points for the second quarter of 2023.
The average cost of total deposits was 2.13% for the third quarter of 2023, an increase of 43 basis points compared to the second quarter of 2023, as a result of higher rates on money market accounts and time deposits. Average non-interest-bearing demand deposits were 28.8% of average total deposits for the third quarter of 2023 compared to 31.7% during the second quarter of 2023.
Provision for Credit Losses
The provision for credit losses was $8.8 million for the third quarter of 2023, an increase of $3.0 million compared to $5.8 million for the second quarter of 2023, mainly attributed to a $2.7 million provision allocated for acquired non-credit-deteriorated loans resulting from acquisition accounting. The provision for credit losses is comprised of a provision for loan and lease losses of $7.9 million and a provision for unfunded commitments of $938,000.
Non-interest Income
Non-interest income for the third quarter of 2023 was $12.4 million, a decrease of $1.9 million, or 13.4%, compared to $14.3 million for the second quarter of 2023. The decrease in total non-interest income was primarily due to a decrease of $2.8 million in the valuation of the loan servicing asset reflecting higher discount rates and higher prepayment rates, partially offset by an increase of $769,000, or 13.5%, in the net gain on sales of loans. During the third quarter of 2023, we sold $101.6 million of U.S. government guaranteed loans compared to $85.9 million during the second quarter of 2023.
Non-interest Expense
Non-interest expense for the third quarter of 2023 was $57.9 million, an increase of $8.6 million, or 17.4%, from $49.3 million for the second quarter of 2023. The increase in total non-interest expense was mainly due to an increase of $5.3 million in salaries and employee benefits and an increase of $2.2 million in data processing, both primarily driven by merger-related expenses.
Our efficiency ratio was 53.75% for the third quarter of 2023 compared to 52.92% for the second quarter of 2023. Excluding significant items, our adjusted efficiency ratio1 for the third quarter 2023 was 47.35%, compared to 51.39% for the second quarter of 2023.
Income Taxes
We recorded income tax expense of $9.9 million during the third quarter of 2023, compared to $9.2 million during the second quarter of 2023. The effective tax rate was 26.0% and 26.1% for the third quarter of 2023 and second quarter of 2023, respectively.
(1) |
Represents non-GAAP financial measures. See “Reconciliation of non-GAAP Financial Measures” for a reconciliation of our non-GAAP measures to the most directly comparable GAAP financial measure. |
STATEMENTS OF FINANCIAL CONDITION HIGHLIGHTS
Assets
Total assets were $8.9 billion as of September 30, 2023, an increase of $1.4 billion, or 18.1%, compared to $7.6 billion at June 30, 2023.
The current quarter increase was primarily due to an increase in net loans and leases of $1.0 billion mainly due to the acquisition; an increase in securities available-for-sale of $114.2 million, driven by increases in acquired securities; and an increase in cash and cash equivalents of $108.7 million mainly to support loan and lease portfolio growth and customer-related activities.
Non-performing loans and leases were $52.1 million at September 30, 2023, an increase of $13.8 million from $38.3 million at June 30, 2023. The increase was primarily the result of $13.7 million of non-performing acquired purchased credit deteriorated (PCD) loans.
Allowance for Credit Losses ("ACL") - Loans and Leases
ACL was $105.7 million as of September 30, 2023, an increase of $13.0 million, or 14.1%, from $92.7 million at June 30, 2023. The increase includes $10.6 million for PCD loans and a $2.7 million provision for acquired non-credit-deteriorated loans, as a result of the recent acquisition. Additional provision for originated loans and leases and an increase in individually assessed impairments were reduced by net charge-offs.
Net charge-offs of loans and leases during the third quarter of 2023 were $5.4 million, or 0.33% of average loans and leases, on an annualized basis. This was an increase of $1.1 million compared to net charge-offs of $4.3 million, or 0.31% of average loans and leases, during the second quarter of 2023.
Deposits and Other Liabilities
Total deposits increased to $7.0 billion at September 30, 2023 compared to $5.9 billion at June 30, 2023. Non-interest-bearing deposits were 28.2% and 30.3% of total deposits at September 30, 2023 and June 30, 2023, respectively. Estimated total uninsured deposits were $1.8 billion and $1.5 billion as of September 30, 2023 and June 30, 2023, and represented 26.1% and 25.9% of total deposits, respectively. The increase in deposits in the current quarter was mainly due to the deposits assumed and increased deposit campaigns. The increase in time deposits of $327.9 million was principally due to increased personal time deposits. The increase in money market demand accounts of $462.2 million was due to increases in consumer and commercial deposits. The increase in non-interest-bearing demand deposits of $166.1 million was mainly due to increases in assumed commercial deposits.
Total borrowings and other liabilities were $1.1 billion at September 30, 2023, an increase of $225.1 million from $844.7 million at June 30, 2023, primarily driven by increases in Federal Home Loan Bank advances, assumed junior subordinated debentures, accrued expenses and other liabilities.
Stockholders’ Equity
Total stockholders’ equity was $919.9 million at September 30, 2023, an increase of $106.0 million from $813.9 million at June 30, 2023. The increase was primarily due to stock consideration issued in connection with the acquisition.
(1) |
Represents non-GAAP financial measures. See “Reconciliation of non-GAAP Financial Measures” for a reconciliation of our non-GAAP measures to the most directly comparable GAAP financial measure. |
Conference Call, Webcast and Slide Presentation
We will host a conference call and webcast at 9:00 a.m. Central Time on Friday, October 27, 2023, to discuss our quarterly financial results. Analysts and investors may participate in the question-and-answer session. The call can be accessed via telephone at (833) 470-1428; passcode 719791. A recorded replay can be accessed through November 10, 2023, by dialing (866) 813-9403; passcode: 404695.
A slide presentation relating to our third quarter 2023 results will be accessible prior to the conference call. The slide presentation and webcast of the conference call can be accessed on our investor relations website at www.bylinebancorp.com.
About Byline Bancorp, Inc.
Headquartered in Chicago, Byline Bancorp, Inc. is the parent company of Byline Bank, a full service commercial bank serving small- and medium-sized businesses, financial sponsors, and consumers. Byline Bank has approximately $8.9 billion in assets and operates 48 branch locations throughout the Chicago and Milwaukee metropolitan areas. Byline Bank offers a broad range of commercial and retail banking products and services including small ticket equipment leasing solutions and is one of the top Small Business Administration lenders in the United States.
Forward-Looking Statements
This communication contains forward-looking statements within the meaning of the U.S. federal securities laws. Forward-looking statements include, without limitation, statements concerning plans, estimates, calculations, forecasts and projections with respect to the anticipated future performance of the Company. These statements are often, but not always, made through the use of words or phrases such as ‘‘may’’, ‘‘might’’, ‘‘should’’, ‘‘could’’, ‘‘predict’’, ‘‘potential’’, ‘‘believe’’, ‘‘expect’’, ‘‘continue’’, ‘‘will’’, ‘‘anticipate’’, ‘‘seek’’, ‘‘estimate’’, ‘‘intend’’, ‘‘plan’’, ‘‘projection’’, ‘‘would’’, ‘‘annualized’’, “target” and ‘‘outlook’’, or the negative version of those words or other comparable words or phrases of a future or forward-looking nature. Forward-looking statements involve estimates and known and unknown risks, and reflect various assumptions and involve elements of subjective judgment and analysis, which may or may not prove to be correct, and which are subject to uncertainties and contingencies outside the control of Byline and its respective affiliates, directors, employees and other representatives, which could cause actual results to differ materially from those presented in this communication.
No representations, warranties or guarantees are or will be made by Byline as to the reliability, accuracy or completeness of any forward-looking statements contained in this communication or that such forward-looking statements are or will remain based on reasonable assumptions. You should not place undue reliance on any forward-looking statements contained in this communication.
Certain risks and important factors that could affect Byline’s future results are identified in our Annual Report on Form 10-K and other reports we file with the Securities and Exchange Commission, including among other things under the heading “Risk Factors” in our Annual Report on Form 10-K for the year ended December 31, 2022. Any forward-looking statement speaks only as of the date on which it is made, and Byline undertakes no obligation to update any forward-looking statement, whether to reflect events or circumstances after the date on which the statement is made, to reflect new information or the occurrence of unanticipated events, or otherwise unless required under the federal securities laws.
BYLINE BANCORP, INC. AND SUBSIDIARIES |
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CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION (unaudited) |
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Recast |
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September 30, |
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June 30, |
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September 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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ASSETS |
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Cash and due from banks |
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$ |
71,248 |
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$ |
59,564 |
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$ |
56,546 |
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Interest bearing deposits with other banks |
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357,640 |
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260,621 |
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159,744 |
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Cash and cash equivalents |
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428,888 |
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320,185 |
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216,290 |
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Equity and other securities, at fair value |
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7,902 |
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18,473 |
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7,279 |
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Securities available-for-sale, at fair value |
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1,239,929 |
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1,125,700 |
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1,181,654 |
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Securities held-to-maturity, at amortized cost |
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1,157 |
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2,158 |
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3,877 |
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Restricted stock, at cost |
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30,505 |
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24,377 |
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27,077 |
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Loans held for sale |
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7,299 |
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25,995 |
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33,975 |
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Loans and leases: |
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Loans and leases |
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6,613,303 |
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5,570,517 |
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5,275,126 |
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Allowance for credit losses - loans and leases |
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(105,696 |
) |
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(92,665 |
) |
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(79,704 |
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Net loans and leases |
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6,507,607 |
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5,477,852 |
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5,195,422 |
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Servicing assets, at fair value |
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19,743 |
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21,715 |
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21,127 |
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Premises and equipment, net |
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67,121 |
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56,304 |
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59,049 |
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Other real estate owned, net |
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1,671 |
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2,265 |
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4,402 |
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Goodwill and other intangible assets, net |
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205,028 |
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155,977 |
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160,484 |
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Bank-owned life insurance |
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96,268 |
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83,222 |
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81,592 |
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Deferred tax assets, net |
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89,841 |
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|
66,895 |
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|
95,831 |
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Accrued interest receivable and other assets |
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240,409 |
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|
194,572 |
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|
179,218 |
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Total assets |
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$ |
8,943,368 |
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$ |
7,575,690 |
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$ |
7,267,277 |
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LIABILITIES AND STOCKHOLDERS’ EQUITY |
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LIABILITIES |
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Non-interest-bearing demand deposits |
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$ |
1,959,855 |
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$ |
1,793,749 |
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$ |
2,142,183 |
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Interest-bearing deposits |
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4,993,835 |
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4,123,343 |
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3,470,273 |
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Total deposits |
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6,953,690 |
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5,917,092 |
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5,612,456 |
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Other borrowings |
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713,233 |
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|
574,922 |
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|
653,954 |
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Subordinated notes, net |
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73,822 |
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|
73,778 |
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|
73,648 |
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Junior subordinated debentures issued to capital trusts, net |
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|
70,336 |
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|
37,557 |
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|
|
37,232 |
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Accrued expenses and other liabilities |
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212,342 |
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|
158,399 |
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|
154,182 |
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Total liabilities |
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8,023,423 |
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|
6,761,748 |
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|
6,531,472 |
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STOCKHOLDERS’ EQUITY |
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Common stock |
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|
450 |
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|
|
391 |
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|
389 |
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Additional paid-in capital |
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|
708,615 |
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|
599,718 |
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|
597,049 |
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Retained earnings |
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|
403,368 |
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|
|
379,078 |
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|
314,800 |
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Treasury stock |
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(50,329 |
) |
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|
(50,383 |
) |
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|
(51,535 |
) |
Accumulated other comprehensive loss, net of tax |
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|
(142,159 |
) |
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(114,862 |
) |
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|
(124,898 |
) |
Total stockholders’ equity |
|
|
919,945 |
|
|
|
813,942 |
|
|
|
735,805 |
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Total liabilities and stockholders’ equity |
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$ |
8,943,368 |
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$ |
7,575,690 |
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$ |
7,267,277 |
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BYLINE BANCORP, INC. AND SUBSIDIARIES |
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CONSOLIDATED STATEMENTS OF OPERATIONS (unaudited) |
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Three Months Ended |
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Recast |
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(dollars in thousands, |
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September 30, |
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June 30, |
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September 30, |
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except per share data) |
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2023 |
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2023 |
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|
2022 |
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INTEREST AND DIVIDEND INCOME |
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|
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|
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Interest and fees on loans and leases |
|
$ |
125,465 |
|
|
$ |
99,134 |
|
|
$ |
72,635 |
|
Interest on securities |
|
|
8,415 |
|
|
|
6,559 |
|
|
|
6,402 |
|
Other interest and dividend income |
|
|
2,710 |
|
|
|
1,579 |
|
|
|
626 |
|
Total interest and dividend income |
|
|
136,590 |
|
|
|
107,272 |
|
|
|
79,663 |
|
INTEREST EXPENSE |
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Deposits |
|
|
37,163 |
|
|
|
24,723 |
|
|
|
5,971 |
|
Other borrowings |
|
|
3,981 |
|
|
|
4,241 |
|
|
|
3,232 |
|
Subordinated notes and debentures |
|
|
2,994 |
|
|
|
2,142 |
|
|
|
1,825 |
|
Total interest expense |
|
|
44,138 |
|
|
|
31,106 |
|
|
|
11,028 |
|
Net interest income |
|
|
92,452 |
|
|
|
76,166 |
|
|
|
68,635 |
|
PROVISION FOR CREDIT LOSSES |
|
|
8,803 |
|
|
|
5,790 |
|
|
|
7,208 |
|
Net interest income after provision for credit losses |
|
|
83,649 |
|
|
|
70,376 |
|
|
|
61,427 |
|
NON-INTEREST INCOME |
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|
|
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|
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Fees and service charges on deposits |
|
|
2,372 |
|
|
|
2,233 |
|
|
|
2,128 |
|
Loan servicing revenue |
|
|
3,369 |
|
|
|
3,377 |
|
|
|
3,422 |
|
Loan servicing asset revaluation |
|
|
(3,646 |
) |
|
|
(865 |
) |
|
|
(2,342 |
) |
ATM and interchange fees |
|
|
1,205 |
|
|
|
1,112 |
|
|
|
1,007 |
|
Net realized losses on securities available-for-sale |
|
|
— |
|
|
|
— |
|
|
|
(2 |
) |
Change in fair value of equity securities, net |
|
|
(313 |
) |
|
|
193 |
|
|
|
(581 |
) |
Net gains on sales of loans |
|
|
6,473 |
|
|
|
5,704 |
|
|
|
5,580 |
|
Wealth management and trust income |
|
|
939 |
|
|
|
1,039 |
|
|
|
995 |
|
Other non-interest income |
|
|
1,977 |
|
|
|
1,498 |
|
|
|
1,836 |
|
Total non-interest income |
|
|
12,376 |
|
|
|
14,291 |
|
|
|
12,043 |
|
NON-INTEREST EXPENSE |
|
|
|
|
|
|
|
|
|
|||
Salaries and employee benefits |
|
|
34,969 |
|
|
|
29,642 |
|
|
|
29,587 |
|
Occupancy and equipment expense, net |
|
|
5,314 |
|
|
|
4,404 |
|
|
|
3,919 |
|
Impairment charge on assets held for sale |
|
|
|
|
|
— |
|
|
|
— |
|
|
Loan and lease related expenses |
|
|
836 |
|
|
|
488 |
|
|
|
530 |
|
Legal, audit, and other professional fees |
|
|
3,805 |
|
|
|
3,675 |
|
|
|
2,733 |
|
Data processing |
|
|
6,472 |
|
|
|
4,272 |
|
|
|
3,370 |
|
Net loss recognized on other real estate owned and other related expenses |
|
|
111 |
|
|
|
288 |
|
|
|
275 |
|
Other intangible assets amortization expense |
|
|
1,551 |
|
|
|
1,455 |
|
|
|
1,611 |
|
Other non-interest expense |
|
|
4,833 |
|
|
|
5,104 |
|
|
|
4,016 |
|
Total non-interest expense |
|
|
57,891 |
|
|
|
49,328 |
|
|
|
46,041 |
|
INCOME BEFORE PROVISION FOR INCOME TAXES |
|
|
38,134 |
|
|
|
35,339 |
|
|
|
27,429 |
|
PROVISION FOR INCOME TAXES |
|
|
9,912 |
|
|
|
9,232 |
|
|
|
7,020 |
|
NET INCOME |
|
$ |
28,222 |
|
|
$ |
26,107 |
|
|
$ |
20,409 |
|
EARNINGS PER COMMON SHARE |
|
|
|
|
|
|
|
|
|
|||
Basic |
|
$ |
0.66 |
|
|
$ |
0.70 |
|
|
$ |
0.55 |
|
Diluted |
|
$ |
0.65 |
|
|
$ |
0.70 |
|
|
$ |
0.55 |
|
BYLINE BANCORP, INC. AND SUBSIDIARIES |
|||||||||||
SELECTED FINANCIAL DATA (unaudited) |
|||||||||||
|
As of or For the Three Months Ended |
|
|||||||||
|
|
|
|
|
|
|
Recast |
|
|||
(dollars in thousands, except share |
September 30, |
|
|
June 30, |
|
|
September 30, |
|
|||
and per share data) |
2023 |
|
|
2023 |
|
|
2022 |
|
|||
Earnings per Common Share |
|
|
|
|
|
|
|
|
|||
Basic earnings per common share |
$ |
0.66 |
|
|
$ |
0.70 |
|
|
$ |
0.55 |
|
Diluted earnings per common share |
$ |
0.65 |
|
|
$ |
0.70 |
|
|
$ |
0.55 |
|
Adjusted diluted earnings per common share(1)(3) |
$ |
0.77 |
|
|
$ |
0.73 |
|
|
$ |
0.55 |
|
Weighted average common shares outstanding (basic) |
|
43,025,927 |
|
|
|
37,034,626 |
|
|
|
36,851,973 |
|
Weighted average common shares outstanding (diluted) |
|
43,458,110 |
|
|
|
37,337,906 |
|
|
|
37,371,159 |
|
Common shares outstanding |
|
43,719,203 |
|
|
|
37,752,002 |
|
|
|
37,465,902 |
|
Cash dividends per common share |
$ |
0.09 |
|
|
$ |
0.09 |
|
|
$ |
0.09 |
|
Dividend payout ratio on common stock |
|
13.85 |
% |
|
|
12.86 |
% |
|
|
16.36 |
% |
Tangible book value per common share(1) |
$ |
16.35 |
|
|
$ |
17.43 |
|
|
$ |
15.36 |
|
Key Ratios and Performance Metrics (annualized where applicable) |
|
|
|
|
|
|
|
|
|||
Net interest margin, fully taxable equivalent (1)(4) |
|
4.47 |
% |
|
|
4.33 |
% |
|
|
4.04 |
% |
Average cost of deposits |
|
2.13 |
% |
|
|
1.70 |
% |
|
|
0.43 |
% |
Efficiency ratio(1)(2) |
|
53.75 |
% |
|
|
52.92 |
% |
|
|
55.07 |
% |
Adjusted efficiency ratio(1)(2)(3) |
|
47.35 |
% |
|
|
51.39 |
% |
|
|
55.07 |
% |
Non-interest income to total revenues(1) |
|
11.81 |
% |
|
|
15.80 |
% |
|
|
14.93 |
% |
Non-interest expense to average assets |
|
2.66 |
% |
|
|
2.67 |
% |
|
|
2.56 |
% |
Adjusted non-interest expense to average assets(1)(3) |
|
2.35 |
% |
|
|
2.60 |
% |
|
|
2.56 |
% |
Return on average stockholders' equity |
|
12.11 |
% |
|
|
12.99 |
% |
|
|
10.57 |
% |
Adjusted return on average stockholders' equity(1)(3) |
|
14.30 |
% |
|
|
13.56 |
% |
|
|
10.57 |
% |
Return on average assets |
|
1.30 |
% |
|
|
1.41 |
% |
|
|
1.13 |
% |
Adjusted return on average assets(1)(3) |
|
1.53 |
% |
|
|
1.48 |
% |
|
|
1.13 |
% |
Pre-tax pre-provision return on average assets(1) |
|
2.16 |
% |
|
|
2.23 |
% |
|
|
1.93 |
% |
Adjusted pre-tax pre-provision return on average assets(1)(3) |
|
2.46 |
% |
|
|
2.30 |
% |
|
|
1.93 |
% |
Return on average tangible common stockholders' equity(1) |
|
16.15 |
% |
|
|
16.78 |
% |
|
|
14.17 |
% |
Adjusted return on average tangible common stockholders' equity(1)(3) |
|
18.95 |
% |
|
|
17.50 |
% |
|
|
14.17 |
% |
Non-interest-bearing deposits to total deposits |
|
28.18 |
% |
|
|
30.31 |
% |
|
|
38.17 |
% |
Loans and leases held for sale and loans and lease held for investment to total deposits |
|
95.21 |
% |
|
|
94.58 |
% |
|
|
94.59 |
% |
Deposits to total liabilities |
|
86.67 |
% |
|
|
87.51 |
% |
|
|
85.93 |
% |
Deposits per branch |
$ |
144,869 |
|
|
$ |
155,713 |
|
|
$ |
147,696 |
|
Asset Quality Ratios |
|
|
|
|
|
|
|
|
|||
Non-performing loans and leases to total loans and leases held for investment, net before ACL |
|
0.79 |
% |
|
|
0.69 |
% |
|
|
0.80 |
% |
ACL to total loans and leases held for investment, net before ACL |
|
1.60 |
% |
|
|
1.66 |
% |
|
|
1.51 |
% |
Net charge-offs to average total loans and leases held for investment, net before ACL - loans and leases |
|
0.33 |
% |
|
|
0.31 |
% |
|
|
0.14 |
% |
Capital Ratios |
|
|
|
|
|
|
|
|
|||
Common equity to total assets |
|
10.29 |
% |
|
|
10.74 |
% |
|
|
10.12 |
% |
Tangible common equity to tangible assets(1) |
|
8.18 |
% |
|
|
8.87 |
% |
|
|
8.10 |
% |
Leverage ratio |
|
10.75 |
% |
|
|
10.74 |
% |
|
|
10.30 |
% |
Common equity tier 1 capital ratio |
|
10.08 |
% |
|
|
10.58 |
% |
|
|
10.24 |
% |
Tier 1 capital ratio |
|
11.12 |
% |
|
|
11.22 |
% |
|
|
10.91 |
% |
Total capital ratio |
|
13.17 |
% |
|
|
13.52 |
% |
|
|
13.02 |
% |
(1) |
Represents a non-GAAP financial measure. See “Reconciliation of non-GAAP Financial Measures” for a reconciliation of our non-GAAP measures to the most directly comparable GAAP financial measure. |
(2) |
Represents non-interest expense less amortization of intangible assets divided by net interest income and non-interest income. |
(3) |
Calculation excludes merger-related expenses and impairment charges on assts held for sale and ROU assets |
(4) |
Interest income and rates include the effects of a tax equivalent adjustment to adjust tax exempt investment income on tax exempt investment securities to a fully taxable basis, assuming a federal income tax rate of 21%. |
BYLINE BANCORP, INC. AND SUBSIDIARIES |
|||||||||||||||||||||||||||||||||||
QUARTER-TO-DATE STATEMENT OF AVERAGE INTEREST-EARNING ASSETS AND AVERAGE INTEREST-BEARING LIABILITIES (unaudited) |
|||||||||||||||||||||||||||||||||||
|
For the Three Months Ended |
|
|||||||||||||||||||||||||||||||||
|
September 30, 2023 |
|
|
June 30, 2023 |
|
|
Recast September 30, 2022 |
|
|||||||||||||||||||||||||||
(dollars in thousands) |
Average
|
|
|
Interest
|
|
|
Avg.
|
|
|
Average
|
|
|
Interest
|
|
|
Avg.
|
|
|
Average
|
|
|
Interest
|
|
|
Avg.
|
|
|||||||||
ASSETS |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Cash and cash equivalents |
$ |
195,019 |
|
|
$ |
1,724 |
|
|
|
3.51 |
% |
|
$ |
135,003 |
|
|
$ |
1,041 |
|
|
|
3.09 |
% |
|
$ |
77,522 |
|
|
$ |
210 |
|
|
|
1.08 |
% |
Loans and leases(1) |
|
6,484,875 |
|
|
|
125,465 |
|
|
|
7.68 |
% |
|
|
5,535,593 |
|
|
|
99,134 |
|
|
|
7.18 |
% |
|
|
5,217,779 |
|
|
|
72,635 |
|
|
|
5.52 |
% |
Taxable securities |
|
1,371,979 |
|
|
|
8,465 |
|
|
|
2.45 |
% |
|
|
1,250,780 |
|
|
|
6,324 |
|
|
|
2.03 |
% |
|
|
1,306,024 |
|
|
|
5,963 |
|
|
|
1.81 |
% |
Tax-exempt securities(2) |
|
168,805 |
|
|
|
1,184 |
|
|
|
2.78 |
% |
|
|
151,205 |
|
|
|
980 |
|
|
|
2.60 |
% |
|
|
162,591 |
|
|
|
1,083 |
|
|
|
2.64 |
% |
Total interest-earning assets |
$ |
8,220,678 |
|
|
$ |
136,838 |
|
|
|
6.60 |
% |
|
$ |
7,072,581 |
|
|
$ |
107,479 |
|
|
|
6.10 |
% |
|
$ |
6,763,916 |
|
|
$ |
79,891 |
|
|
|
4.69 |
% |
Allowance for credit losses - loans and leases |
|
(108,315 |
) |
|
|
|
|
|
|
|
|
(92,804 |
) |
|
|
|
|
|
|
|
|
(74,383 |
) |
|
|
|
|
|
|
||||||
All other assets |
|
521,982 |
|
|
|
|
|
|
|
|
|
424,122 |
|
|
|
|
|
|
|
|
|
447,939 |
|
|
|
|
|
|
|
||||||
TOTAL ASSETS |
$ |
8,634,345 |
|
|
|
|
|
|
|
|
$ |
7,403,899 |
|
|
|
|
|
|
|
|
$ |
7,137,472 |
|
|
|
|
|
|
|
||||||
LIABILITIES AND STOCKHOLDERS’ EQUITY |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Deposits |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Interest checking |
$ |
579,917 |
|
|
$ |
2,208 |
|
|
|
1.51 |
% |
|
$ |
541,036 |
|
|
$ |
2,175 |
|
|
|
1.61 |
% |
|
$ |
583,777 |
|
|
$ |
1,077 |
|
|
|
0.73 |
% |
Money market accounts |
|
2,040,476 |
|
|
|
16,676 |
|
|
|
3.24 |
% |
|
|
1,534,463 |
|
|
|
10,799 |
|
|
|
2.82 |
% |
|
|
1,391,923 |
|
|
|
3,358 |
|
|
|
0.96 |
% |
Savings |
|
594,555 |
|
|
|
228 |
|
|
|
0.15 |
% |
|
|
575,254 |
|
|
|
220 |
|
|
|
0.15 |
% |
|
|
673,966 |
|
|
|
247 |
|
|
|
0.15 |
% |
Time deposits |
|
1,706,531 |
|
|
|
18,051 |
|
|
|
4.20 |
% |
|
|
1,328,679 |
|
|
|
11,529 |
|
|
|
3.48 |
% |
|
|
687,124 |
|
|
|
1,289 |
|
|
|
0.74 |
% |
Total interest-bearing deposits |
|
4,921,479 |
|
|
|
37,163 |
|
|
|
3.00 |
% |
|
|
3,979,432 |
|
|
|
24,723 |
|
|
|
2.49 |
% |
|
|
3,336,790 |
|
|
|
5,971 |
|
|
|
0.71 |
% |
Other borrowings |
|
463,561 |
|
|
|
3,981 |
|
|
|
3.41 |
% |
|
|
509,419 |
|
|
|
4,241 |
|
|
|
3.34 |
% |
|
|
607,471 |
|
|
|
3,232 |
|
|
|
2.11 |
% |
Subordinated notes and debentures |
|
144,171 |
|
|
|
2,994 |
|
|
|
8.24 |
% |
|
|
111,255 |
|
|
|
2,142 |
|
|
|
7.72 |
% |
|
|
110,799 |
|
|
|
1,825 |
|
|
|
6.54 |
% |
Total borrowings |
|
607,732 |
|
|
|
6,975 |
|
|
|
4.55 |
% |
|
|
620,674 |
|
|
|
6,383 |
|
|
|
4.12 |
% |
|
|
718,270 |
|
|
|
5,057 |
|
|
|
2.79 |
% |
Total interest-bearing liabilities |
$ |
5,529,211 |
|
|
$ |
44,138 |
|
|
|
3.17 |
% |
|
$ |
4,600,106 |
|
|
$ |
31,106 |
|
|
|
2.71 |
% |
|
$ |
4,055,060 |
|
|
$ |
11,028 |
|
|
|
1.08 |
% |
Non-interest-bearing demand deposits |
|
1,987,996 |
|
|
|
|
|
|
|
|
|
1,848,538 |
|
|
|
|
|
|
|
|
|
2,198,095 |
|
|
|
|
|
|
|
||||||
Other liabilities |
|
192,860 |
|
|
|
|
|
|
|
|
|
148,983 |
|
|
|
|
|
|
|
|
|
118,496 |
|
|
|
|
|
|
|
||||||
Total stockholders’ equity |
|
924,278 |
|
|
|
|
|
|
|
|
|
806,272 |
|
|
|
|
|
|
|
|
|
765,821 |
|
|
|
|
|
|
|
||||||
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY |
$ |
8,634,345 |
|
|
|
|
|
|
|
|
$ |
7,403,899 |
|
|
|
|
|
|
|
|
$ |
7,137,472 |
|
|
|
|
|
|
|
||||||
Net interest spread(3) |
|
|
|
|
|
|
|
3.43 |
% |
|
|
|
|
|
|
|
|
3.39 |
% |
|
|
|
|
|
|
|
|
3.61 |
% |
||||||
Net interest income, fully taxable equivalent |
|
|
|
$ |
92,700 |
|
|
|
|
|
|
|
|
$ |
76,373 |
|
|
|
|
|
|
|
|
$ |
68,863 |
|
|
|
|
||||||
Net interest margin, fully taxable equivalent(2)(4) |
|
|
|
|
|
|
|
4.47 |
% |
|
|
|
|
|
|
|
|
4.33 |
% |
|
|
|
|
|
|
|
|
4.04 |
% |
||||||
Less: Tax-equivalent adjustment |
|
|
|
|
248 |
|
|
|
0.01 |
% |
|
|
|
|
|
207 |
|
|
|
0.01 |
% |
|
|
|
|
|
228 |
|
|
|
0.01 |
% |
|||
Net interest income |
|
|
|
$ |
92,452 |
|
|
|
|
|
|
|
|
$ |
76,166 |
|
|
|
|
|
|
|
|
$ |
68,635 |
|
|
|
|
||||||
Net interest margin(4) |
|
|
|
|
|
|
|
4.46 |
% |
|
|
|
|
|
|
|
|
4.32 |
% |
|
|
|
|
|
|
|
|
4.03 |
% |
||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Net loan accretion impact on margin |
|
|
|
$ |
10,276 |
|
|
|
0.50 |
% |
|
|
|
|
$ |
611 |
|
|
|
0.03 |
% |
|
|
|
|
$ |
1,371 |
|
|
|
0.08 |
% |
|||
(1) |
Loan and lease balances are net of deferred origination fees and costs and initial direct costs. Non-accrual loans and leases are included in total loan and lease balances. |
(2) |
Interest income and rates include the effects of a tax equivalent adjustment to adjust tax exempt investment income on tax exempt investment securities to a fully taxable basis, assuming a federal income tax rate of 21%. |
(3) |
Represents the average rate earned on interest-earning assets minus the average rate paid on interest-bearing liabilities. |
(4) |
Represents net interest income (annualized) divided by total average earning assets. |
(5) |
Average balances are average daily balances. |
BYLINE BANCORP, INC. AND SUBSIDIARIES |
||||||||||||||||||||||||
SELECTED BALANCE SHEET TABLES AND FINANCIAL RATIOS (unaudited) |
||||||||||||||||||||||||
The following table presents our allocation of originated, purchased credit deteriorated (PCD), and acquired non-credit-deteriorated loans and leases at the dates indicated: |
||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
Recast |
|
||||||||||||
|
|
September 30, 2023 |
|
|
June 30, 2023 |
|
|
September 30, 2022 |
|
|||||||||||||||
(dollars in thousands) |
|
Amount |
|
|
% of Total |
|
|
Amount |
|
|
% of Total |
|
|
Amount |
|
|
% of Total |
|
||||||
Originated loans and leases |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Commercial real estate |
|
$ |
1,837,531 |
|
|
|
27.8 |
% |
|
$ |
1,806,531 |
|
|
|
32.4 |
% |
|
$ |
1,659,218 |
|
|
|
31.5 |
% |
Residential real estate |
|
|
454,456 |
|
|
|
6.9 |
% |
|
|
453,880 |
|
|
|
8.1 |
% |
|
|
409,926 |
|
|
|
7.8 |
% |
Construction, land development, and other land |
|
|
406,334 |
|
|
|
6.1 |
% |
|
|
387,623 |
|
|
|
7.0 |
% |
|
|
456,276 |
|
|
|
8.5 |
% |
Commercial and industrial |
|
|
2,286,058 |
|
|
|
34.6 |
% |
|
|
2,086,274 |
|
|
|
37.4 |
% |
|
|
1,940,236 |
|
|
|
36.8 |
% |
Installment and other |
|
|
2,968 |
|
|
|
0.0 |
% |
|
|
3,582 |
|
|
|
0.1 |
% |
|
|
999 |
|
|
|
0.0 |
% |
Leasing financing receivables |
|
|
641,032 |
|
|
|
9.7 |
% |
|
|
604,437 |
|
|
|
10.9 |
% |
|
|
492,744 |
|
|
|
9.3 |
% |
Total originated loans and leases |
|
$ |
5,628,379 |
|
|
|
85.1 |
% |
|
$ |
5,342,327 |
|
|
|
95.9 |
% |
|
$ |
4,959,399 |
|
|
|
94.0 |
% |
Purchased credit deteriorated loans |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Commercial real estate |
|
$ |
154,573 |
|
|
|
2.3 |
% |
|
$ |
30,724 |
|
|
|
0.6 |
% |
|
$ |
49,649 |
|
|
|
0.9 |
% |
Residential real estate |
|
|
47,485 |
|
|
|
0.7 |
% |
|
|
26,012 |
|
|
|
0.5 |
% |
|
|
35,309 |
|
|
|
0.7 |
% |
Construction, land development, and other land |
|
|
29,587 |
|
|
|
0.5 |
% |
|
|
320 |
|
|
|
0.0 |
% |
|
|
1,131 |
|
|
|
0.0 |
% |
Commercial and industrial |
|
|
21,014 |
|
|
|
0.3 |
% |
|
|
1,726 |
|
|
|
0.0 |
% |
|
|
2,345 |
|
|
|
0.1 |
% |
Installment and other |
|
|
125 |
|
|
|
0.0 |
% |
|
|
129 |
|
|
|
0.0 |
% |
|
|
149 |
|
|
|
0.0 |
% |
Total purchased credit deteriorated loans |
|
$ |
252,784 |
|
|
|
3.8 |
% |
|
$ |
58,911 |
|
|
|
1.1 |
% |
|
$ |
88,583 |
|
|
|
1.7 |
% |
Acquired non-credit-deteriorated loans and leases |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Commercial real estate |
|
$ |
296,656 |
|
|
|
4.5 |
% |
|
$ |
126,191 |
|
|
|
2.3 |
% |
|
$ |
159,928 |
|
|
|
3.0 |
% |
Residential real estate |
|
|
220,091 |
|
|
|
3.4 |
% |
|
|
25,055 |
|
|
|
0.4 |
% |
|
|
36,480 |
|
|
|
0.7 |
% |
Construction, land development, and other land |
|
|
87,087 |
|
|
|
1.3 |
% |
|
|
— |
|
|
|
0.0 |
% |
|
|
187 |
|
|
|
0.0 |
% |
Commercial and industrial |
|
|
127,253 |
|
|
|
1.9 |
% |
|
|
16,750 |
|
|
|
0.3 |
% |
|
|
27,249 |
|
|
|
0.5 |
% |
Installment and other |
|
|
153 |
|
|
|
0.0 |
% |
|
|
25 |
|
|
|
0.0 |
% |
|
|
216 |
|
|
|
0.0 |
% |
Leasing financing receivables |
|
|
900 |
|
|
|
0.0 |
% |
|
|
1,258 |
|
|
|
0.0 |
% |
|
|
3,084 |
|
|
|
0.1 |
% |
Total acquired non-credit-deteriorated loans and leases |
|
$ |
732,140 |
|
|
|
11.1 |
% |
|
$ |
169,279 |
|
|
|
3.0 |
% |
|
$ |
227,144 |
|
|
|
4.3 |
% |
Total loans and leases |
|
$ |
6,613,303 |
|
|
|
100.0 |
% |
|
$ |
5,570,517 |
|
|
|
100.0 |
% |
|
$ |
5,275,126 |
|
|
|
100.0 |
% |
Allowance for credit losses - loans and leases |
|
|
(105,696 |
) |
|
|
|
|
|
(92,665 |
) |
|
|
|
|
|
(79,704 |
) |
|
|
|
|||
Total loans and leases, net of allowance for
|
|
$ |
6,507,607 |
|
|
|
|
|
$ |
5,477,852 |
|
|
|
|
|
$ |
5,195,422 |
|
|
|
|
|||
The following table presents the balance and activity within the allowance for credit losses - loans and lease for the periods indicated:
|
|
Three Months Ended |
|
|||||||||
|
|
|
|
|
|
|
|
Recast |
|
|||
|
|
September 30, |
|
|
June 30, |
|
|
September 30, |
|
|||
(dollars in thousands) |
|
2023 |
|
|
2023 |
|
|
2022 |
|
|||
ACL - loans and leases, beginning of period |
|
$ |
92,665 |
|
|
$ |
90,465 |
|
|
$ |
74,048 |
|
Adjustment for acquired PCD loans |
|
|
10,596 |
|
|
|
— |
|
|
|
— |
|
Provision for credit losses - loans and leases |
|
|
7,865 |
|
|
|
6,467 |
|
|
|
7,447 |
|
Net charge-offs - loans and leases |
|
|
(5,430 |
) |
|
|
(4,267 |
) |
|
|
(1,791 |
) |
ACL - loans and leases, end of period |
|
$ |
105,696 |
|
|
$ |
92,665 |
|
|
$ |
79,704 |
|
Net charge-offs - loans and leases to average total loans and leases held for investment, net before ACL |
|
|
0.33 |
% |
|
|
0.31 |
% |
|
|
0.14 |
% |
Provision for credit losses - loans and leases to net charge-offs - loans and leases during the period |
|
|
1.45 |
x |
|
|
1.52 |
x |
|
|
4.16 |
x |
BYLINE BANCORP, INC. AND SUBSIDIARIES |
||||||||||||||||||||
SELECTED BALANCE SHEET TABLES AND FINANCIAL RATIOS (unaudited) |
||||||||||||||||||||
The following table presents the amounts of non-performing loans and leases and other real estate owned at the date indicated: |
||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
September 30, 2023 |
|
||||||||
|
|
|
|
|
|
|
|
Recast |
|
|
Change from |
|
||||||||
(dollars in thousands) |
|
September 30,
|
|
|
June 30, 2023 |
|
|
September 30,
|
|
|
June 30, 2023 |
|
|
September 30,
|
|
|||||
Non-performing assets: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Non-accrual loans and leases |
|
$ |
52,070 |
|
|
$ |
38,273 |
|
|
$ |
41,942 |
|
|
|
36.0 |
% |
|
|
24.1 |
% |
Past due loans and leases 90 days or more and still accruing interest |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
—% |
|
|
—% |
|
||
Total non-performing loans and leases |
|
$ |
52,070 |
|
|
$ |
38,273 |
|
|
$ |
41,942 |
|
|
|
36.0 |
% |
|
|
24.1 |
% |
Other real estate owned |
|
|
1,671 |
|
|
|
2,265 |
|
|
|
4,402 |
|
|
|
(26.2 |
)% |
|
|
(62.0 |
)% |
Total non-performing assets |
|
$ |
53,741 |
|
|
$ |
40,538 |
|
|
$ |
46,344 |
|
|
|
32.6 |
% |
|
|
16.0 |
% |
Total non-performing loans and leases as a percentage of total loans and leases |
|
|
0.79 |
% |
|
|
0.69 |
% |
|
|
0.80 |
% |
|
|
|
|
|
|
||
Total non-performing assets as a percentage of total assets |
|
|
0.60 |
% |
|
|
0.54 |
% |
|
|
0.64 |
% |
|
|
|
|
|
|
||
Allowance for credit losses - loans and lease as a percentage of non-performing loans and leases |
|
|
202.99 |
% |
|
|
242.12 |
% |
|
|
190.03 |
% |
|
|
|
|
|
|
||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Non-performing assets guaranteed by U.S. government: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Non-accrual loans guaranteed |
|
$ |
3,588 |
|
|
$ |
2,472 |
|
|
$ |
1,676 |
|
|
|
45.1 |
% |
|
|
114.1 |
% |
Past due loans 90 days or more and still accruing interest guaranteed |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
—% |
|
|
—% |
|
||
Total non-performing loans guaranteed |
|
$ |
3,588 |
|
|
$ |
2,472 |
|
|
$ |
1,676 |
|
|
|
45.1 |
% |
|
|
114.1 |
% |
Total non-performing loans and leases not guaranteed as a percentage of total loans and leases |
|
|
0.73 |
% |
|
|
0.64 |
% |
|
|
0.76 |
% |
|
|
|
|
|
|
||
Total non-performing assets not guaranteed as a percentage of total assets |
|
|
0.56 |
% |
|
|
0.50 |
% |
|
|
0.61 |
% |
|
|
|
|
|
|
||
The following table presents the composition of deposits at the dates indicated:
|
|
|
|
|
|
|
|
|
|
September 30, 2023 |
|
||||||||
|
|
|
|
|
|
|
|
|
|
Change from |
|
||||||||
(dollars in thousands) |
September 30, 2023 |
|
|
June 30, 2023 |
|
|
September 30, 2022 |
|
|
June 30, 2023 |
|
|
September 30, 2022 |
|
|||||
Non-interest-bearing demand deposits |
$ |
1,959,855 |
|
|
$ |
1,793,749 |
|
|
$ |
2,142,183 |
|
|
|
9.3 |
% |
|
|
(8.5 |
)% |
Interest-bearing checking accounts |
|
592,771 |
|
|
|
530,775 |
|
|
|
616,139 |
|
|
|
11.7 |
% |
|
|
(3.8 |
)% |
Money market demand accounts |
|
2,062,252 |
|
|
|
1,600,043 |
|
|
|
1,485,815 |
|
|
|
28.9 |
% |
|
|
38.8 |
% |
Other savings |
|
581,073 |
|
|
|
562,706 |
|
|
|
669,734 |
|
|
|
3.3 |
% |
|
|
(13.2 |
)% |
Time deposits (below $250,000) |
|
1,446,485 |
|
|
|
1,214,717 |
|
|
|
586,198 |
|
|
|
19.1 |
% |
|
|
146.8 |
% |
Time deposits ($250,000 and above) |
|
311,254 |
|
|
|
215,102 |
|
|
|
112,387 |
|
|
|
44.7 |
% |
|
|
176.9 |
% |
Total deposits |
$ |
6,953,690 |
|
|
$ |
5,917,092 |
|
|
$ |
5,612,456 |
|
|
|
17.5 |
% |
|
|
23.9 |
% |
BYLINE BANCORP, INC. AND SUBSIDIARIES
RECONCILIATION OF NON-GAAP FINANCIAL MEASURES (unaudited)
Non-GAAP Financial Measures
This release contains certain financial information determined by methods other than in accordance with accounting principles generally accepted in the United States of America (“GAAP”). These measures include adjusted net income, adjusted diluted earnings per share, adjusted efficiency ratio, adjusted non-interest expense to average assets, tax-equivalent net interest margin, total revenue, non-interest income to total revenues, adjusted return on average stockholders’ equity, adjusted return on average assets, pre-tax pre-provision return on average assets, adjusted pre-tax pre-provision return on average assets, tangible book value per common share, tangible common equity to tangible assets, return on average tangible common stockholders' equity, and adjusted return on average tangible common stockholders' equity. Management believes that these non-GAAP financial measures provide useful information to management and investors that is supplementary to the Company’s financial condition, results of operations and cash flows computed in accordance with GAAP; however, management acknowledges that our non-GAAP financial measures have a number of limitations. As such, these disclosures should not be viewed as a substitute for results determined in accordance with GAAP financial measures that we and other companies use. Management also uses these measures for peer comparison. See below in the financial schedules included in this press release for a reconciliation of the non-GAAP financial measures to the comparable GAAP financial measures. Additionally, please refer to the Company’s Annual Report on Form 10-K for the detailed definitions of these non-GAAP financial measures.
|
|
As of or For the Three Months Ended |
|
|
|||||||||
|
|
|
|
|
|
|
|
Recast |
|
|
|||
|
|
September 30, |
|
|
June 30, |
|
|
September 30, |
|
|
|||
(dollars in thousands, except per share data) |
|
2023 |
|
|
2023 |
|
|
2022 |
|
|
|||
Net income and earnings per share excluding significant items |
|
|
|
|
|
|
|
|
|
|
|||
Reported Net Income |
|
$ |
28,222 |
|
|
$ |
26,107 |
|
|
$ |
20,409 |
|
|
Significant items: |
|
|
|
|
|
|
|
|
|
|
|||
Impairment charges on ROU assets |
|
|
394 |
|
|
|
— |
|
|
|
— |
|
|
Merger-related expenses |
|
|
6,307 |
|
|
|
1,391 |
|
|
|
— |
|
|
Tax benefit |
|
|
(1,617 |
) |
|
|
(230 |
) |
|
|
— |
|
|
Adjusted Net Income |
|
$ |
33,306 |
|
|
$ |
27,268 |
|
|
$ |
20,409 |
|
|
Reported Diluted Earnings per Share |
|
$ |
0.65 |
|
|
$ |
0.70 |
|
|
$ |
0.55 |
|
|
Significant items: |
|
|
|
|
|
|
|
|
|
|
|||
Impairment charges on ROU assets |
|
|
0.01 |
|
|
|
— |
|
|
|
— |
|
|
Merger-related expenses |
|
|
0.15 |
|
|
|
0.04 |
|
|
|
— |
|
|
Tax benefit |
|
|
(0.04 |
) |
|
|
(0.01 |
) |
|
|
— |
|
|
Adjusted Diluted Earnings per Share |
|
$ |
0.77 |
|
|
$ |
0.73 |
|
|
$ |
0.55 |
|
|
BYLINE BANCORP, INC. AND SUBSIDIARIES |
||||||||||||
RECONCILIATION OF NON-GAAP FINANCIAL MEASURES (continued) (unaudited) |
||||||||||||
|
|
As of or For the Three Months Ended |
|
|||||||||
|
|
|
|
|
|
|
|
Recast |
|
|||
(dollars in thousands, except per share data, |
|
September 30, |
|
|
June 30, |
|
|
September 30, |
|
|||
ratios annualized, where applicable) |
|
2023 |
|
|
2023 |
|
|
2022 |
|
|||
Adjusted non-interest expense: |
|
|
|
|
|
|
|
|
|
|||
Non-interest expense |
|
$ |
57,891 |
|
|
$ |
49,328 |
|
|
$ |
46,041 |
|
Less: Significant items |
|
|
|
|
|
|
|
|
|
|||
Impairment charges on ROU assets |
|
|
394 |
|
|
|
— |
|
|
|
— |
|
Merger-related expenses |
|
|
6,307 |
|
|
|
1,391 |
|
|
|
— |
|
Adjusted non-interest expense |
|
$ |
51,190 |
|
|
$ |
47,937 |
|
|
$ |
46,041 |
|
Adjusted non-interest expense excluding amortization of intangible assets: |
|
|
|
|
|
|
|
|
|
|||
Adjusted non-interest expense |
|
$ |
51,190 |
|
|
$ |
47,937 |
|
|
$ |
46,041 |
|
Less: Amortization of intangible assets |
|
|
1,551 |
|
|
|
1,455 |
|
|
|
1,611 |
|
Adjusted non-interest expense excluding amortization of intangible assets |
|
$ |
49,639 |
|
|
$ |
46,482 |
|
|
$ |
44,430 |
|
Pre-tax pre-provision net income: |
|
|
|
|
|
|
|
|
|
|||
Pre-tax income |
|
$ |
38,134 |
|
|
$ |
35,339 |
|
|
$ |
27,429 |
|
Add: Provision for credit losses |
|
|
8,803 |
|
|
|
5,790 |
|
|
|
7,208 |
|
Pre-tax pre-provision net income |
|
$ |
46,937 |
|
|
$ |
41,129 |
|
|
$ |
34,637 |
|
Adjusted pre-tax pre-provision net income: |
|
|
|
|
|
|
|
|
|
|||
Pre-tax pre-provision net income |
|
$ |
46,937 |
|
|
$ |
41,129 |
|
|
$ |
34,637 |
|
Add: Impairment charges on ROU assets |
|
|
394 |
|
|
|
— |
|
|
|
— |
|
Add: Merger-related expenses |
|
|
6,307 |
|
|
|
1,391 |
|
|
|
— |
|
Adjusted pre-tax pre-provision net income |
|
$ |
53,638 |
|
|
$ |
42,520 |
|
|
$ |
34,637 |
|
Tax equivalent net interest income |
|
|
|
|
|
|
|
|
|
|||
Net interest income |
|
$ |
92,452 |
|
|
$ |
76,166 |
|
|
$ |
68,635 |
|
Add: Tax-equivalent adjustment |
|
|
248 |
|
|
|
207 |
|
|
|
228 |
|
Net interest income, fully taxable equivalent |
|
$ |
92,700 |
|
|
$ |
76,373 |
|
|
$ |
68,863 |
|
Total revenue: |
|
|
|
|
|
|
|
|
|
|||
Net interest income |
|
$ |
92,452 |
|
|
$ |
76,166 |
|
|
$ |
68,635 |
|
Add: Non-interest income |
|
|
12,376 |
|
|
|
14,291 |
|
|
|
12,043 |
|
Total revenue |
|
$ |
104,828 |
|
|
$ |
90,457 |
|
|
$ |
80,678 |
|
Tangible common stockholders' equity: |
|
|
|
|
|
|
|
|
|
|||
Total stockholders' equity |
|
$ |
919,945 |
|
|
$ |
813,942 |
|
|
$ |
735,805 |
|
Less: Goodwill and other intangibles |
|
|
205,028 |
|
|
|
155,977 |
|
|
|
160,484 |
|
Tangible common stockholders' equity |
|
$ |
714,917 |
|
|
$ |
657,965 |
|
|
$ |
575,321 |
|
Tangible assets: |
|
|
|
|
|
|
|
|
|
|||
Total assets |
|
$ |
8,943,368 |
|
|
$ |
7,575,690 |
|
|
$ |
7,267,277 |
|
Less: Goodwill and other intangibles |
|
|
205,028 |
|
|
|
155,977 |
|
|
|
160,484 |
|
Tangible assets |
|
$ |
8,738,340 |
|
|
$ |
7,419,713 |
|
|
$ |
7,106,793 |
|
Average tangible common stockholders' equity: |
|
|
|
|
|
|
|
|
|
|||
Average total stockholders' equity |
|
$ |
924,278 |
|
|
$ |
806,272 |
|
|
$ |
765,821 |
|
Less: Average goodwill and other intangibles |
|
|
202,978 |
|
|
|
156,766 |
|
|
|
161,292 |
|
Average tangible common stockholders' equity |
|
$ |
721,300 |
|
|
$ |
649,506 |
|
|
$ |
604,529 |
|
Average tangible assets: |
|
|
|
|
|
|
|
|
|
|||
Average total assets |
|
$ |
8,634,345 |
|
|
$ |
7,403,899 |
|
|
$ |
7,137,472 |
|
Less: Average goodwill and other intangibles |
|
|
202,978 |
|
|
|
156,766 |
|
|
|
161,292 |
|
Average tangible assets |
|
$ |
8,431,367 |
|
|
$ |
7,247,133 |
|
|
$ |
6,976,180 |
|
Tangible net income available to common stockholders: |
|
|
|
|
|
|
|
|
|
|||
Net income available to common stockholders |
|
$ |
28,222 |
|
|
$ |
26,107 |
|
|
$ |
20,409 |
|
Add: After-tax intangible asset amortization |
|
|
1,137 |
|
|
|
1,067 |
|
|
|
1,181 |
|
Tangible net income available to common stockholders |
|
$ |
29,359 |
|
|
$ |
27,174 |
|
|
$ |
21,590 |
|
Adjusted tangible net income available to common stockholders: |
|
|
|
|
|
|
|
|
|
|||
Tangible net income available to common stockholders |
|
$ |
29,359 |
|
|
$ |
27,174 |
|
|
$ |
21,590 |
|
Impairment charges on ROU assets |
|
|
394 |
|
|
|
— |
|
|
|
— |
|
Merger-related expenses |
|
|
6,307 |
|
|
|
1,391 |
|
|
|
— |
|
Tax benefit on significant items |
|
|
(1,617 |
) |
|
|
(230 |
) |
|
|
— |
|
Adjusted tangible net income available to common stockholders |
|
$ |
34,443 |
|
|
$ |
28,335 |
|
|
$ |
21,590 |
|
BYLINE BANCORP, INC. AND SUBSIDIARIES |
||||||||||||
RECONCILIATION OF NON-GAAP FINANCIAL MEASURES (continued) (unaudited) |
||||||||||||
|
|
As of or For the Three Months Ended |
|
|||||||||
|
|
|
|
|
|
|
|
Recast |
|
|||
(dollars in thousands, except share and per share |
|
September 30, |
|
|
June 30, |
|
|
September 30, |
|
|||
data, ratios annualized, where applicable) |
|
2023 |
|
|
2023 |
|
|
2022 |
|
|||
Pre-tax pre-provision return on average assets: |
|
|
|
|
|
|
|
|
|
|||
Pre-tax pre-provision net income |
|
$ |
46,937 |
|
|
$ |
41,129 |
|
|
$ |
34,637 |
|
Average total assets |
|
|
8,634,345 |
|
|
|
7,403,899 |
|
|
|
7,137,472 |
|
Pre-tax pre-provision return on average assets |
|
|
2.16 |
% |
|
|
2.23 |
% |
|
|
1.93 |
% |
Adjusted pre-tax pre-provision return on average assets: |
|
|
|
|
|
|
|
|
|
|||
Adjusted pre-tax pre-provision net income |
|
$ |
53,638 |
|
|
$ |
42,520 |
|
|
$ |
34,637 |
|
Average total assets |
|
|
8,634,345 |
|
|
|
7,403,899 |
|
|
|
7,137,472 |
|
Adjusted pre-tax pre-provision return on average assets |
|
|
2.46 |
% |
|
|
2.30 |
% |
|
|
1.93 |
% |
Net interest margin, fully taxable equivalent |
|
|
|
|
|
|
|
|
|
|||
Net interest income, fully taxable equivalent |
|
$ |
92,700 |
|
|
$ |
76,373 |
|
|
$ |
68,863 |
|
Total average interest-earning assets |
|
|
8,220,678 |
|
|
|
7,072,581 |
|
|
|
6,763,916 |
|
Net interest margin, fully taxable equivalent |
|
|
4.47 |
% |
|
|
4.33 |
% |
|
|
4.04 |
% |
Non-interest income to total revenues: |
|
|
|
|
|
|
|
|
|
|||
Non-interest income |
|
$ |
12,376 |
|
|
$ |
14,291 |
|
|
$ |
12,043 |
|
Total revenues |
|
|
104,828 |
|
|
|
90,457 |
|
|
|
80,678 |
|
Non-interest income to total revenues |
|
|
11.81 |
% |
|
|
15.80 |
% |
|
|
14.93 |
% |
Adjusted non-interest expense to average assets: |
|
|
|
|
|
|
|
|
|
|||
Adjusted non-interest expense |
|
$ |
51,190 |
|
|
$ |
47,937 |
|
|
$ |
46,041 |
|
Average total assets |
|
|
8,634,345 |
|
|
|
7,403,899 |
|
|
|
7,137,472 |
|
Adjusted non-interest expense to average assets |
|
|
2.35 |
% |
|
|
2.60 |
% |
|
|
2.56 |
% |
Adjusted efficiency ratio: |
|
|
|
|
|
|
|
|
|
|||
Adjusted non-interest expense excluding amortization of intangible assets |
|
$ |
49,639 |
|
|
$ |
46,482 |
|
|
$ |
44,430 |
|
Total revenues |
|
|
104,828 |
|
|
|
90,457 |
|
|
|
80,678 |
|
Adjusted efficiency ratio |
|
|
47.35 |
% |
|
|
51.39 |
% |
|
|
55.07 |
% |
Adjusted return on average assets: |
|
|
|
|
|
|
|
|
|
|||
Adjusted net income |
|
$ |
33,306 |
|
|
$ |
27,268 |
|
|
$ |
20,409 |
|
Average total assets |
|
|
8,634,345 |
|
|
|
7,403,899 |
|
|
|
7,137,472 |
|
Adjusted return on average assets |
|
|
1.53 |
% |
|
|
1.48 |
% |
|
|
1.13 |
% |
Adjusted return on average stockholders' equity: |
|
|
|
|
|
|
|
|
|
|||
Adjusted net income |
|
$ |
33,306 |
|
|
$ |
27,268 |
|
|
$ |
20,409 |
|
Average stockholders' equity |
|
|
924,278 |
|
|
|
806,272 |
|
|
|
765,821 |
|
Adjusted return on average stockholders' equity |
|
|
14.30 |
% |
|
|
13.56 |
% |
|
|
10.57 |
% |
Tangible common equity to tangible assets: |
|
|
|
|
|
|
|
|
|
|||
Tangible common equity |
|
$ |
714,917 |
|
|
$ |
657,965 |
|
|
$ |
575,321 |
|
Tangible assets |
|
|
8,738,340 |
|
|
|
7,419,713 |
|
|
|
7,106,793 |
|
Tangible common equity to tangible assets |
|
|
8.18 |
% |
|
|
8.87 |
% |
|
|
8.10 |
% |
Return on average tangible common stockholders' equity: |
|
|
|
|
|
|
|
|
|
|||
Tangible net income available to common stockholders |
|
$ |
29,359 |
|
|
$ |
27,174 |
|
|
$ |
21,590 |
|
Average tangible common stockholders' equity |
|
|
721,300 |
|
|
|
649,506 |
|
|
|
604,529 |
|
Return on average tangible common stockholders' equity |
|
|
16.15 |
% |
|
|
16.78 |
% |
|
|
14.17 |
% |
Adjusted return on average tangible common stockholders' equity: |
|
|
|
|
|
|
|
|
|
|||
Adjusted tangible net income available to common stockholders |
|
$ |
34,443 |
|
|
$ |
28,335 |
|
|
$ |
21,590 |
|
Average tangible common stockholders' equity |
|
|
721,300 |
|
|
|
649,506 |
|
|
|
604,529 |
|
Adjusted return on average tangible common stockholders' equity |
|
|
18.95 |
% |
|
|
17.50 |
% |
|
|
14.17 |
% |
Tangible book value per share: |
|
|
|
|
|
|
|
|
|
|||
Tangible common equity |
|
$ |
714,917 |
|
|
$ |
657,965 |
|
|
$ |
575,321 |
|
Common shares outstanding |
|
|
43,719,203 |
|
|
|
37,752,002 |
|
|
|
37,465,902 |
|
Tangible book value per share |
|
$ |
16.35 |
|
|
$ |
17.43 |
|
|
$ |
15.36 |
|
View source version on businesswire.com: https://www.businesswire.com/news/home/20231026092197/en/
Contacts
Investors/Media:
Brooks Rennie
Investor Relations Director
312-660-5805
brennie@bylinebank.com
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