BY Byline Bancorp Inc

First quarter net income of $30.4 million, $0.70 diluted earnings per share

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

 

 

 

 

For the quarter

 

First Quarter Highlights

 

 

 

1Q24

 

4Q23

 

1Q23

Financial Results ($ in thousands)

 

 

 

 

 

 

 

 

 

 

• ROAA of 1.36%

 

Net interest income

 

$

85,541

 

$

86,285

 

$

75,718

 

 

 

Non-interest income

 

 

15,473

 

 

14,503

 

 

15,145

 

• PTPP ROAA of 2.10%(1)

 

Total Revenue(1)

 

 

101,014

 

 

100,788

 

 

90,863

 

 

 

Non-interest expense

 

 

53,809

 

 

53,584

 

 

48,800

 

• ROTCE of 15.88%(1)

 

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

 

 

47,205

 

 

47,204

 

 

42,063

 

 

 

Provision for credit losses

 

 

6,643

 

 

7,235

 

 

9,825

 

• TCE/TA of 8.76%(1); CET1 of 10.59%

 

Provision for income taxes

 

 

10,122

 

 

10,365

 

 

8,293

 

 

 

Net Income

 

$

30,440

$

29,604

$

23,945

• TBV per share of $18.29(1), up 8.1% YoY

 

 

 

 

 

 

 

 

 

 

 

 

 

Per Share

 

 

 

 

 

 

 

 

 

 

Income Statement

 

Diluted EPS

$

0.70

$

0.68

$

0.64

• Total revenue of $101.0 million(1)

 

Dividends declared per common share

 

 

0.09

 

 

0.09

 

 

0.09

 

 

 

Book value per share

 

 

22.88

 

 

22.62

 

 

21.10

 

• Net Income of $30.4 million

 

Tangible book value per share(1)

 

 

18.29

 

 

17.98

 

 

16.92

 

 

 

 

• PTPP of $47.2 million(1)

Balance Sheet & Credit Quality ($ in thousands)

 

 

 

 

 

 

 

 

 

 

 

 

Total deposits

$

7,350,202

$

7,176,999

$

5,812,652

• Tax equivalent NIM of 4.01%(1)

 

Total loans and leases

 

 

6,801,782

 

 

6,702,311

 

 

5,543,711

 

 

 

Net charge-offs (NCO)

 

 

6,211

 

 

12,186

 

 

1,171

 

• Efficiency ratio of 51.94%(1)

 

Allowance for credit losses (ACL)

 

 

102,366

 

 

101,686

 

 

90,465

 

 

 

ACL to total loans and leases held for investment

 

 

1.51%

 

 

1.52%

 

 

1.64%

 

Balance Sheet

 

 

 

 

 

 

 

 

 

 

 

 

• Deposit growth of $173.2 million, or 9.7%(2)

Select Ratios (annualized where applicable)

 

 

 

 

 

 

 

 

 

 

 

 

Efficiency ratio(1)

 

 

51.94%

 

 

51.63%

 

 

52.10%

 

• Total loans and leases grew $99.5 million,

 

Return on average assets (ROAA)

1.36%

1.34%

1.32%

or 6.0%(2)

 

Return on average stockholders' equity

 

 

12.26%

 

 

12.56%

 

 

12.38%

 

 

 

Return on average tangible common equity(1)

 

 

15.88%

 

 

16.68%

 

 

16.20%

 

• Total assets grew $528.5 million, or 23.9%(2)

 

Net Interest Margin (NIM)

 

 

4.00%

 

 

4.08%

 

 

4.38%

 

 

 

Common equity to total assets

 

 

10.72%

 

 

11.15%

 

 

10.57%

 

• Stockholders' equity exceeded $1.0 billion

 

Tangible common equity to tangible assets(1)

 

 

8.76%

 

 

9.06%

 

 

8.66%

 

 

 

Common Equity Tier 1

 

 

10.59%

 

 

10.35%

 

 

10.27%

 

• Loan/deposit ratio decreased to 92.54%

(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)

Annualized

CEO/President Commentary

 

Roberto R. Herencia, Executive Chairman and CEO of Byline Bancorp, commented, "Our team continues to execute well on our strategy and this quarter was no exception. We reported strong financial results while surpassing $9.0 billion in total assets and $1.0 billion in stockholders’ equity. We remain optimistic about our opportunities to execute on our strategy in the future to further enhance the value of our franchise, while becoming the preeminent commercial bank in Chicago."

Alberto J. Paracchini, President of Byline Bancorp, added, "We had a solid start to 2024 and were pleased with our results for quarter. Earnings and profitability remained robust and we had nice growth in loans and deposits. Credit quality remained stable and expenses continue to remain well managed. Our balance sheet remains strong, giving us flexibility to grow the business and take advantage of opportunities in the market. I want to thank our employees for their continued hard work in serving our clients."

Board Declares Cash Dividend of $0.09 per Share

On April 23, 2024, the Company's Board of Directors declared a cash dividend of $0.09 per share, payable on May 21, 2024, to stockholders of record of the Company's common stock as of May 7, 2024.

STATEMENTS OF OPERATIONS HIGHLIGHTS

Net Interest Income

Net interest income for the first quarter of 2024 was $85.5 million, a decrease of $744,000, or 0.9%, from the fourth quarter of 2023. The decrease in net interest income was primarily due to an increase of $2.7 million in deposit interest expense primarily due to time deposit growth and higher rates paid on deposits, and an increase of $773,000 in other borrowing interest expense due to increased borrowings, offset by lower borrowing costs. The decrease was partially offset by an increase of $2.5 million in other interest and dividend income mainly due to interest income earned on funds held with the Federal Reserve Bank.

Tax-equivalent net interest margin(1) for the first quarter of 2024 was 4.01%, a decrease of eight basis points compared to the fourth quarter of 2023. Total net loan accretion income impact on the margin contributed 20 basis points to the net interest margin for the current quarter compared to 24 basis points for the prior quarter.

The average cost of total deposits was 2.56% for the first quarter of 2024, an increase of 14 basis points compared to the fourth quarter of 2023, as a result of higher rates on time deposits and money market accounts. Average non-interest-bearing demand deposits were 25.9% of average total deposits for the current quarter compared to 27.5% during the prior quarter.

Provision for Credit Losses

The provision for credit losses was $6.6 million for the first quarter of 2024, a decrease of $592,000 compared to $7.2 million for the fourth quarter of 2023, mainly attributed to a smaller allocation to individually assessed loans, offset by growth in the loan and lease portfolio. The provision for credit losses for the quarter is comprised of a provision for loan and lease losses of $6.9 million and a recapture for unfunded commitments of $248,000.

Non-interest Income

Non-interest income for the first quarter of 2024 was $15.5 million, an increase of $970,000, or 6.7%, compared to $14.5 million for the fourth quarter of 2023. The increase in total non-interest income was primarily due to a $1.0 million increase in other non-interest income due to increased income on derivatives and gains on the sales of leased equipment, and a $531,000 decrease in the downward valuation of the loan servicing asset reflecting lower discount rates. These were partially offset by a $449,000 decrease in the change in fair value of equity securities.

Net gains on sales of loans were $5.5 million for the current quarter, an increase of $53,000 compared to the prior quarter. During the first quarter of 2024, we sold $72.5 million of U.S. government guaranteed loans compared to $89.1 million during the fourth quarter of 2023.

Non-interest Expense

Non-interest expense for the first quarter of 2024 was $53.8 million, an increase of $225,000, or 0.4%, from $53.6 million for the fourth quarter of 2023. The increase in total non-interest expense was mainly due to an increase of $2.0 million in salaries and employee benefits primarily due to increases in payroll taxes due to annual counter resets, and an increase of $938,000 in occupancy and equipment expense, net, due to higher real estate taxes and maintenance expense. These increases were offset by a $2.0 million decrease in impairment charges on assets held for sale, and an $837,000 decrease in data processing expenses due to decreased merger-related expenses. Other non-interest expense includes $1.1 million of charges related to branch consolidations incurred during the first quarter of 2024.

Our efficiency ratio was 51.94% for the first quarter of 2024 compared to 51.63% for the fourth quarter of 2023, an increase of 31 basis points. Excluding significant items, our adjusted efficiency ratio(1) for the first quarter 2024 was 51.75%, compared to 48.64% for the fourth quarter of 2023.

Income Taxes

We recorded income tax expense of $10.1 million during the first quarter of 2024, compared to $10.4 million during the fourth quarter of 2023. The effective tax rates were 25.0% and 25.9% for the first quarter of 2024 and fourth 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 $9.4 billion as of March 31, 2024, an increase of $528.5 million, or 6.0%, compared to $8.9 billion at December 31, 2023. The increase was primarily due to an increase in cash and cash equivalents of $410.7 million, inclusive of $200.0 million in short-term investments, and an increase in net loans and leases held for investment of $93.2 million mainly due to growth in commercial and industrial originations, offset by a decline of $52.0 million in commercial real estate.

Asset and Credit Quality

The ACL was $102.4 million as of March 31, 2024, an increase of $680,000, or 0.7%, from $101.7 million at December 31, 2023. Net charge-offs of loans and leases during the first quarter of 2024 were $6.2 million, or 0.37% of average loans and leases, on an annualized basis. This was a decrease of $6.0 million compared to net charge-offs of $12.2 million, or 0.73% of average loans and leases, during the fourth quarter of 2023. The decrease is primarily due to lower charge-offs in the commercial and industrial and commercial real estate loan portfolios.

Non-performing assets were $68.7 million, or 0.73% of total assets, as of March 31, 2024, an increase of $3.4 million from $65.3 million, or 0.74% of total assets, at December 31, 2023. The increase was primarily the result of migration within the government guaranteed loan portfolio to non-accrual status. The government guaranteed portion of non-accrual loans was $7.1 million at March 31, 2024 compared to $4.2 million at December 31, 2023.

Deposits and Other Liabilities

Total deposits increased $173.2 million to $7.4 billion at March 31, 2024 compared to $7.2 billion at December 31, 2023. The increase in deposits in the current quarter was mainly due to increases in time deposits and interest bearing checking accounts. Time deposit growth of $137.7 million was principally due to increases in consumer time deposits from deposit campaigns. Interest-bearing demand deposits increased $109.5 million primarily due to growth in commercial deposits.

Total borrowings and other liabilities were $1.1 billion at March 31, 2024, an increase of $336.4 million from $714.8 million at December 31, 2023. The increase was primarily driven by a $200.0 million advance under the Bank Term Funding Program and increases in Federal Home Loan Bank advances, offset by a decrease of $11.3 million as a result of the repayment of the amount outstanding under our revolving line of credit.

Stockholders’ Equity

Total stockholders’ equity grew to $1.0 billion at March 31, 2024, an increase of $18.9 million from $990.2 million at December 31, 2023. The quarterly increase was primarily due to increased retained earnings from net income.

Conference Call, Webcast and Slide Presentation

We will host a conference call and webcast at 9:00 a.m. Central Time on Friday, April 26, 2024, 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 371735. A recorded replay can be accessed through May 10, 2024, by dialing (866) 813-9403; passcode: 454029.

A slide presentation relating to our first quarter 2024 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 $9.4 billion in assets and operates 48 branch locations throughout the Chicago and Milwaukee metropolitan areas. Byline Bank offers a broad range of commercial and community 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, 2023. Any forward-looking statement speaks only as of the date on which it is made, and Byline undertakes no obligation to update any forward-looking statement, whether to reflect events or circumstances after the date on which the statement is made, to reflect new information or the occurrence of unanticipated events, or otherwise unless required under the federal securities laws.

BYLINE BANCORP, INC. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION (unaudited)

 

 

 

 

 

 

 

 

 

 

 

 

March 31,

 

 

December 31,

 

 

March 31,

 

(dollars in thousands)

 

2024

 

 

2023

 

 

2023

 

ASSETS

 

 

 

 

 

 

 

 

 

Cash and due from banks

 

$

58,640

 

 

$

60,431

 

 

$

52,725

 

Interest bearing deposits with other banks

 

 

578,197

 

 

 

165,705

 

 

 

231,486

 

Cash and cash equivalents

 

 

636,837

 

 

 

226,136

 

 

 

284,211

 

Equity and other securities, at fair value

 

 

9,135

 

 

 

8,743

 

 

 

8,339

 

Securities available-for-sale, at fair value

 

 

1,379,147

 

 

 

1,342,480

 

 

 

1,164,387

 

Securities held-to-maturity, at amortized cost

 

 

1,156

 

 

 

1,157

 

 

 

2,704

 

Restricted stock, at cost

 

 

22,793

 

 

 

16,304

 

 

 

38,777

 

Loans held for sale

 

 

23,568

 

 

 

18,005

 

 

 

28,379

 

Loans and leases:

 

 

 

 

 

 

 

 

 

Loans and leases

 

 

6,778,214

 

 

 

6,684,306

 

 

 

5,515,332

 

Allowance for credit losses - loans and leases

 

 

(102,366

)

 

 

(101,686

)

 

 

(90,465

)

Net loans and leases

 

 

6,675,848

 

 

 

6,582,620

 

 

 

5,424,867

 

Servicing assets, at fair value

 

 

20,992

 

 

 

19,844

 

 

 

20,944

 

Premises and equipment, net

 

 

64,466

 

 

 

66,627

 

 

 

56,098

 

Goodwill and other intangible assets, net

 

 

202,133

 

 

 

203,478

 

 

 

157,432

 

Bank-owned life insurance

 

 

97,748

 

 

 

96,900

 

 

 

82,693

 

Deferred tax assets, net

 

 

53,029

 

 

 

50,058

 

 

 

64,918

 

Accrued interest receivable and other assets

 

 

223,651

 

 

 

249,615

 

 

 

196,597

 

Total assets

 

$

9,410,503

 

 

$

8,881,967

 

 

$

7,530,346

 

LIABILITIES AND STOCKHOLDERS’ EQUITY

 

 

 

 

 

 

 

 

 

LIABILITIES

 

 

 

 

 

 

 

 

 

Non-interest-bearing demand deposits

 

$

1,851,727

 

 

$

1,905,876

 

 

$

1,952,045

 

Interest-bearing deposits

 

 

5,498,475

 

 

 

5,271,123

 

 

 

3,860,607

 

Total deposits

 

 

7,350,202

 

 

 

7,176,999

 

 

 

5,812,652

 

Other borrowings

 

 

721,173

 

 

 

395,190

 

 

 

662,810

 

Subordinated notes, net

 

 

73,909

 

 

 

73,866

 

 

 

73,735

 

Junior subordinated debentures issued to capital trusts, net

 

 

70,567

 

 

 

70,452

 

 

 

37,442

 

Accrued interest payable and other liabilities

 

 

185,603

 

 

 

175,309

 

 

 

148,057

 

Total liabilities

 

 

8,401,454

 

 

 

7,891,816

 

 

 

6,734,696

 

STOCKHOLDERS’ EQUITY

 

 

 

 

 

 

 

 

 

Common stock

 

 

452

 

 

 

451

 

 

 

390

 

Additional paid-in capital

 

 

708,844

 

 

 

710,488

 

 

 

598,103

 

Retained earnings

 

 

455,532

 

 

 

429,036

 

 

 

356,365

 

Treasury stock

 

 

(48,869

)

 

 

(49,707

)

 

 

(51,066

)

Accumulated other comprehensive loss, net of tax

 

 

(106,910

)

 

 

(100,117

)

 

 

(108,142

)

Total stockholders’ equity

 

 

1,009,049

 

 

 

990,151

 

 

 

795,650

 

Total liabilities and stockholders’ equity

 

$

9,410,503

 

 

$

8,881,967

 

 

$

7,530,346

 

BYLINE BANCORP, INC. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF OPERATIONS (unaudited)

 

 

 

Three Months Ended

 

 

 

March 31,

 

 

December 31,

 

 

March 31,

 

(dollars in thousands, except per share data)

 

2024

 

 

2023

 

 

2023

 

INTEREST AND DIVIDEND INCOME

 

 

 

 

 

 

 

 

 

Interest and fees on loans and leases

 

$

123,792

 

 

$

124,042

 

 

$

92,343

 

Interest on securities

 

 

9,734

 

 

 

9,227

 

 

 

6,600

 

Other interest and dividend income

 

 

4,795

 

 

 

2,345

 

 

 

1,059

 

Total interest and dividend income

 

 

138,321

 

 

 

135,614

 

 

 

100,002

 

INTEREST EXPENSE

 

 

 

 

 

 

 

 

 

Deposits

 

 

45,962

 

 

 

43,252

 

 

 

16,298

 

Other borrowings

 

 

3,824

 

 

 

3,051

 

 

 

5,888

 

Subordinated notes and debentures

 

 

2,994

 

 

 

3,026

 

 

 

2,098

 

Total interest expense

 

 

52,780

 

 

 

49,329

 

 

 

24,284

 

Net interest income

 

 

85,541

 

 

 

86,285

 

 

 

75,718

 

PROVISION FOR CREDIT LOSSES

 

 

6,643

 

 

 

7,235

 

 

 

9,825

 

Net interest income after provision for credit losses

 

 

78,898

 

 

 

79,050

 

 

 

65,893

 

NON-INTEREST INCOME

 

 

 

 

 

 

 

 

 

Fees and service charges on deposits

 

 

2,427

 

 

 

2,486

 

 

 

2,120

 

Loan servicing revenue

 

 

3,364

 

 

 

3,377

 

 

 

3,380

 

Loan servicing asset revaluation

 

 

(703

)

 

 

(1,234

)

 

 

656

 

ATM and interchange fees

 

 

1,075

 

 

 

1,082

 

 

 

1,063

 

Change in fair value of equity securities, net

 

 

392

 

 

 

841

 

 

 

350

 

Net gains on sales of loans

 

 

5,533

 

 

 

5,480

 

 

 

5,148

 

Wealth management and trust income

 

 

1,157

 

 

 

1,256

 

 

 

924

 

Other non-interest income

 

 

2,228

 

 

 

1,215

 

 

 

1,504

 

Total non-interest income

 

 

15,473

 

 

 

14,503

 

 

 

15,145

 

NON-INTEREST EXPENSE

 

 

 

 

 

 

 

 

 

Salaries and employee benefits

 

 

33,953

 

 

 

31,974

 

 

 

30,394

 

Occupancy and equipment expense, net

 

 

5,284

 

 

 

4,346

 

 

 

4,444

 

Impairment charge on assets held for sale

 

 

—

 

 

 

1,980

 

 

 

20

 

Loan and lease related expenses

 

 

685

 

 

 

649

 

 

 

963

 

Legal, audit, and other professional fees

 

 

2,719

 

 

 

2,352

 

 

 

3,114

 

Data processing

 

 

4,145

 

 

 

4,982

 

 

 

3,783

 

Net (gain) loss recognized on other real estate owned and other related expenses

 

 

(98

)

 

 

89

 

 

 

(103

)

Other intangible assets amortization expense

 

 

1,345

 

 

 

1,550

 

 

 

1,455

 

Other non-interest expense

 

 

5,776

 

 

 

5,662

 

 

 

4,730

 

Total non-interest expense

 

 

53,809

 

 

 

53,584

 

 

 

48,800

 

INCOME BEFORE PROVISION FOR INCOME TAXES

 

 

40,562

 

 

 

39,969

 

 

 

32,238

 

PROVISION FOR INCOME TAXES

 

 

10,122

 

 

 

10,365

 

 

 

8,293

 

NET INCOME

 

$

30,440

 

 

$

29,604

 

 

$

23,945

 

EARNINGS PER COMMON SHARE

 

 

 

 

 

 

 

 

 

Basic

 

$

0.70

 

 

$

0.69

 

 

$

0.65

 

Diluted

 

$

0.70

 

 

$

0.68

 

 

$

0.64

 

BYLINE BANCORP, INC. AND SUBSIDIARIES

SELECTED FINANCIAL DATA (unaudited)

 

 

As of or For the Three Months Ended

 

(dollars in thousands, except share

March 31,

 

 

December 31,

 

 

March 31,

 

and per share data)

2024

 

 

2023

 

 

2023

 

Earnings per Common Share

 

 

 

 

 

 

 

 

Basic earnings per common share

$

0.70

 

 

$

0.69

 

 

$

0.65

 

Diluted earnings per common share

$

0.70

 

 

$

0.68

 

 

$

0.64

 

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

$

0.70

 

 

$

0.73

 

 

$

0.65

 

Weighted average common shares outstanding (basic)

 

43,258,087

 

 

 

43,065,294

 

 

 

36,955,085

 

Weighted average common shares outstanding (diluted)

 

43,727,344

 

 

 

43,537,778

 

 

 

37,539,912

 

Common shares outstanding

 

44,108,387

 

 

 

43,764,056

 

 

 

37,713,427

 

Cash dividends per common share

$

0.09

 

 

$

0.09

 

 

$

0.09

 

Dividend payout ratio on common stock

 

12.86

%

 

 

13.24

%

 

 

14.06

%

Book value per common share

$

22.88

 

 

$

22.62

 

 

$

21.10

 

Tangible book value per common share(1)

$

18.29

 

 

$

17.98

 

 

$

16.92

 

Key Ratios and Performance Metrics (annualized where applicable)

 

 

 

 

 

 

 

 

Net interest margin

 

4.00

%

 

 

4.08

%

 

 

4.38

%

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

 

4.01

%

 

 

4.09

%

 

 

4.39

%

Average cost of deposits

 

2.56

%

 

 

2.42

%

 

 

1.15

%

Efficiency ratio(1)(2)

 

51.94

%

 

 

51.63

%

 

 

52.10

%

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

 

51.75

%

 

 

48.64

%

 

 

51.54

%

Non-interest income to total revenues(1)

 

15.32

%

 

 

14.39

%

 

 

16.67

%

Non-interest expense to average assets

 

2.40

%

 

 

2.42

%

 

 

2.69

%

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

 

2.39

%

 

 

2.28

%

 

 

2.67

%

Return on average stockholders' equity

 

12.26

%

 

 

12.56

%

 

 

12.38

%

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

 

12.31

%

 

 

13.50

%

 

 

12.62

%

Return on average assets

 

1.36

%

 

 

1.34

%

 

 

1.32

%

Adjusted return on average assets(1)(3)

 

1.36

%

 

 

1.44

%

 

 

1.35

%

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

 

2.10

%

 

 

2.13

%

 

 

2.32

%

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

 

2.11

%

 

 

2.27

%

 

 

2.35

%

Return on average tangible common stockholders' equity(1)

 

15.88

%

 

 

16.68

%

 

 

16.20

%

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

 

15.95

%

 

 

17.89

%

 

 

16.49

%

Non-interest-bearing deposits to total deposits

 

25.19

%

 

 

26.56

%

 

 

33.58

%

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

 

92.54

%

 

 

93.39

%

 

 

95.37

%

Deposits to total liabilities

 

87.49

%

 

 

90.94

%

 

 

86.31

%

Deposits per branch

$

153,129

 

 

$

149,521

 

 

$

152,965

 

Asset Quality Ratios

 

 

 

 

 

 

 

 

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

 

1.00

%

 

 

0.96

%

 

 

0.84

%

Total non-performing assets as a percentage of total assets

 

0.73

%

 

 

0.74

%

 

 

0.67

%

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

 

1.51

%

 

 

1.52

%

 

 

1.64

%

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

 

0.37

%

 

 

0.73

%

 

 

0.09

%

Capital Ratios

 

 

 

 

 

 

 

 

Common equity to total assets

 

10.72

%

 

 

11.15

%

 

 

10.57

%

Tangible common equity to tangible assets(1)

 

8.76

%

 

 

9.06

%

 

 

8.66

%

Leverage ratio

 

10.91

%

 

 

10.86

%

 

 

10.46

%

Common equity tier 1 capital ratio

 

10.59

%

 

 

10.35

%

 

 

10.27

%

Tier 1 capital ratio

 

11.62

%

 

 

11.39

%

 

 

10.90

%

Total capital ratio

 

13.66

%

 

 

13.38

%

 

 

13.19

%

(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 assets 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

 

 

March 31, 2024

 

 

December 31, 2023

 

 

March 31, 2023

 

(dollars in thousands)

Average Balance(5)

 

 

Interest Inc / Exp

 

 

Avg. Yield / Rate

 

 

Average Balance(5)

 

 

Interest Inc / Exp

 

 

Avg. Yield / Rate

 

 

Average Balance(5)

 

 

Interest Inc / Exp

 

 

Avg. Yield / Rate

 

ASSETS

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cash and cash equivalents

$

339,449

 

 

$

3,828

 

 

 

4.54

%

 

$

201,862

 

 

$

1,822

 

 

 

3.58

%

 

$

97,578

 

 

$

442

 

 

 

1.84

%

Loans and leases(1)

 

6,681,488

 

 

 

123,792

 

 

 

7.45

%

 

 

6,632,827

 

 

 

124,042

 

 

 

7.42

%

 

 

5,484,372

 

 

 

92,343

 

 

 

6.83

%

Taxable securities

 

1,422,661

 

 

 

9,822

 

 

 

2.78

%

 

 

1,389,580

 

 

 

8,848

 

 

 

2.53

%

 

 

1,275,377

 

 

 

6,431

 

 

 

2.04

%

Tax-exempt securities(2)

 

159,984

 

 

 

1,112

 

 

 

2.80

%

 

 

163,608

 

 

 

1,142

 

 

 

2.77

%

 

 

151,817

 

 

 

994

 

 

 

2.65

%

Total interest-earning assets

$

8,603,582

 

 

$

138,554

 

 

 

6.48

%

 

$

8,387,877

 

 

$

135,854

 

 

 

6.43

%

 

$

7,009,144

 

 

$

100,210

 

 

 

5.80

%

Allowance for credit losses - loans and leases

 

(102,256

)

 

 

 

 

 

 

 

 

(106,474

)

 

 

 

 

 

 

 

 

(84,321

)

 

 

 

 

 

 

All other assets

 

529,615

 

 

 

 

 

 

 

 

 

506,233

 

 

 

 

 

 

 

 

 

420,328

 

 

 

 

 

 

 

TOTAL ASSETS

$

9,030,941

 

 

 

 

 

 

 

 

$

8,787,636

 

 

 

 

 

 

 

 

$

7,345,151

 

 

 

 

 

 

 

LIABILITIES AND STOCKHOLDERS’ EQUITY

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Deposits

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest checking

$

590,406

 

 

$

2,429

 

 

 

1.65

%

 

$

570,706

 

 

$

2,335

 

 

 

1.62

%

 

$

606,008

 

 

$

2,494

 

 

 

1.67

%

Money market accounts

 

2,237,324

 

 

 

19,660

 

 

 

3.53

%

 

 

2,159,841

 

 

 

18,730

 

 

 

3.44

%

 

 

1,465,677

 

 

 

7,728

 

 

 

2.14

%

Savings

 

531,912

 

 

 

197

 

 

 

0.15

%

 

 

560,372

 

 

 

208

 

 

 

0.15

%

 

 

613,590

 

 

 

227

 

 

 

0.15

%

Time deposits

 

1,992,357

 

 

 

23,676

 

 

 

4.78

%

 

 

1,861,279

 

 

 

21,979

 

 

 

4.68

%

 

 

966,409

 

 

 

5,849

 

 

 

2.45

%

Total interest-bearing deposits

 

5,351,999

 

 

 

45,962

 

 

 

3.45

%

 

 

5,152,198

 

 

 

43,252

 

 

 

3.33

%

 

 

3,651,684

 

 

 

16,298

 

 

 

1.81

%

Other borrowings

 

472,644

 

 

 

3,824

 

 

 

3.25

%

 

 

395,711

 

 

 

3,051

 

 

 

3.06

%

 

 

573,433

 

 

 

5,852

 

 

 

4.14

%

Federal funds purchased

 

—

 

 

 

—

 

 

 

0.00

%

 

 

—

 

 

 

—

 

 

 

0.00

%

 

 

2,778

 

 

 

36

 

 

 

5.30

%

Subordinated notes and debentures

 

144,387

 

 

 

2,994

 

 

 

8.34

%

 

 

144,230

 

 

 

3,026

 

 

 

8.32

%

 

 

111,101

 

 

 

2,098

 

 

 

7.66

%

Total borrowings

 

617,031

 

 

 

6,818

 

 

 

4.44

%

 

 

539,941

 

 

 

6,077

 

 

 

4.47

%

 

 

687,312

 

 

 

7,986

 

 

 

4.71

%

Total interest-bearing liabilities

$

5,969,030

 

 

$

52,780

 

 

 

3.56

%

 

$

5,692,139

 

 

$

49,329

 

 

 

3.44

%

 

$

4,338,996

 

 

$

24,284

 

 

 

2.27

%

Non-interest-bearing demand deposits

 

1,874,322

 

 

 

 

 

 

 

 

 

1,950,644

 

 

 

 

 

 

 

 

 

2,076,613

 

 

 

 

 

 

 

Other liabilities

 

188,783

 

 

 

 

 

 

 

 

 

209,656

 

 

 

 

 

 

 

 

 

145,253

 

 

 

 

 

 

 

Total stockholders’ equity

 

998,806

 

 

 

 

 

 

 

 

 

935,197

 

 

 

 

 

 

 

 

 

784,289

 

 

 

 

 

 

 

TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY

$

9,030,941

 

 

 

 

 

 

 

 

$

8,787,636

 

 

 

 

 

 

 

 

$

7,345,151

 

 

 

 

 

 

 

Net interest spread(3)

 

 

 

 

 

 

 

2.92

%

 

 

 

 

 

 

 

 

2.99

%

 

 

 

 

 

 

 

 

3.53

%

Net interest income, fully taxable equivalent

 

 

 

$

85,774

 

 

 

 

 

 

 

 

$

86,525

 

 

 

 

 

 

 

 

$

75,926

 

 

 

 

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

 

 

 

 

 

 

 

4.01

%

 

 

 

 

 

 

 

 

4.09

%

 

 

 

 

 

 

 

 

4.39

%

Less: Tax-equivalent adjustment

 

 

 

 

233

 

 

 

0.01

%

 

 

 

 

 

240

 

 

 

0.01

%

 

 

 

 

 

208

 

 

 

0.01

%

Net interest income

 

 

 

$

85,541

 

 

 

 

 

 

 

 

$

86,285

 

 

 

 

 

 

 

 

$

75,718

 

 

 

 

Net interest margin(4)

 

 

 

 

 

 

 

4.00

%

 

 

 

 

 

 

 

 

4.08

%

 

 

 

 

 

 

 

 

4.38

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net loan accretion impact on margin

 

 

 

$

4,284

 

 

 

0.20

%

 

 

 

 

$

5,110

 

 

 

0.24

%

 

 

 

 

$

729

 

 

 

0.04

%

(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:

 

 

 

March 31, 2024

 

 

December 31, 2023

 

 

March 31, 2023

 

(dollars in thousands)

 

Amount

 

 

% of Total

 

 

Amount

 

 

% of Total

 

 

Amount

 

 

% of Total

 

Originated loans and leases:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Commercial real estate

 

$

1,879,149

 

 

 

27.7

%

 

$

1,907,029

 

 

 

28.5

%

 

$

1,749,808

 

 

 

31.7

%

Residential real estate

 

 

488,887

 

 

 

7.2

%

 

 

465,133

 

 

 

7.0

%

 

 

441,291

 

 

 

8.0

%

Construction, land development, and other land

 

 

416,996

 

 

 

6.2

%

 

 

415,162

 

 

 

6.2

%

 

 

446,763

 

 

 

8.1

%

Commercial and industrial

 

 

2,420,952

 

 

 

35.7

%

 

 

2,311,563

 

 

 

34.6

%

 

 

2,061,267

 

 

 

37.4

%

Installment and other

 

 

2,855

 

 

 

0.0

%

 

 

2,919

 

 

 

0.0

%

 

 

1,603

 

 

 

0.0

%

Leasing financing receivables

 

 

691,617

 

 

 

10.2

%

 

 

665,239

 

 

 

10.0

%

 

 

552,174

 

 

 

10.0

%

Total originated loans and leases

 

$

5,900,456

 

 

 

87.0

%

 

$

5,767,045

 

 

 

86.3

%

 

$

5,252,906

 

 

 

95.2

%

Purchased credit deteriorated loans:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Commercial real estate

 

$

117,460

 

 

 

1.7

%

 

$

137,807

 

 

 

2.1

%

 

$

39,000

 

 

 

0.7

%

Residential real estate

 

 

39,535

 

 

 

0.6

%

 

 

42,510

 

 

 

0.6

%

 

 

30,070

 

 

 

0.6

%

Construction, land development, and other land

 

 

26,418

 

 

 

0.4

%

 

 

25,331

 

 

 

0.4

%

 

 

345

 

 

 

0.0

%

Commercial and industrial

 

 

18,100

 

 

 

0.3

%

 

 

19,460

 

 

 

0.3

%

 

 

1,745

 

 

 

0.0

%

Installment and other

 

 

118

 

 

 

0.0

%

 

 

125

 

 

 

0.0

%

 

 

134

 

 

 

0.0

%

Total purchased credit deteriorated loans

 

$

201,631

 

 

 

3.0

%

 

$

225,233

 

 

 

3.4

%

 

$

71,294

 

 

 

1.3

%

Acquired non-credit-deteriorated loans and leases:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Commercial real estate

 

$

271,720

 

 

 

4.0

%

 

$

275,476

 

 

 

4.1

%

 

$

140,576

 

 

 

2.6

%

Residential real estate

 

 

204,589

 

 

 

3.0

%

 

 

211,887

 

 

 

3.2

%

 

 

27,975

 

 

 

0.5

%

Construction, land development, and other land

 

 

85,553

 

 

 

1.3

%

 

 

86,344

 

 

 

1.3

%

 

 

—

 

 

 

0.0

%

Commercial and industrial

 

 

113,673

 

 

 

1.7

%

 

 

117,538

 

 

 

1.7

%

 

 

20,793

 

 

 

0.4

%

Installment and other

 

 

166

 

 

 

0.0

%

 

 

156

 

 

 

0.0

%

 

 

85

 

 

 

0.0

%

Leasing financing receivables

 

 

426

 

 

 

0.0

%

 

 

627

 

 

 

0.0

%

 

 

1,703

 

 

 

0.0

%

Total acquired non-credit-deteriorated loans and leases

 

$

676,127

 

 

 

10.0

%

 

$

692,028

 

 

 

10.3

%

 

$

191,132

 

 

 

3.5

%

Total loans and leases

 

$

6,778,214

 

 

 

100.0

%

 

$

6,684,306

 

 

 

100.0

%

 

$

5,515,332

 

 

 

100.0

%

Allowance for credit losses - loans and leases

 

 

(102,366

)

 

 

 

 

 

(101,686

)

 

 

 

 

 

(90,465

)

 

 

 

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

 

$

6,675,848

 

 

 

 

 

$

6,582,620

 

 

 

 

 

$

5,424,867

 

 

 

 

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

 

 

Three Months Ended

 

 

 

March 31,

 

 

December 31,

 

 

March 31,

 

(dollars in thousands)

 

2024

 

 

2023

 

 

2023

 

ACL - loans and leases, beginning of period

 

$

101,686

 

 

$

105,696

 

 

$

81,924

 

Provision for credit losses - loans and leases

 

 

6,891

 

 

 

8,176

 

 

 

9,712

 

Net charge-offs - loans and leases

 

 

(6,211

)

 

 

(12,186

)

 

 

(1,171

)

ACL - loans and leases, end of period

 

$

102,366

 

 

$

101,686

 

 

$

90,465

 

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

 

 

0.37

%

 

 

0.73

%

 

 

0.09

%

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

 

 

1.11

x

 

 

0.67

x

 

 

8.29

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:

 

 

 

 

 

 

 

 

 

 

 

 

March 31, 2024

 

 

 

 

 

 

 

 

 

 

 

 

Change from

 

(dollars in thousands)

 

March 31, 2024

 

 

December 31, 2023

 

 

March 31, 2023

 

 

December 31, 2023

 

 

March 31, 2023

 

Non-performing assets:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Non-accrual loans and leases

 

$

67,899

 

 

$

64,107

 

 

$

46,536

 

 

 

5.9

%

 

 

45.9

%

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

 

 

—

 

 

 

—

 

 

 

—

 

 

—%

 

 

—%

 

Total non-performing loans and leases

 

$

67,899

 

 

$

64,107

 

 

$

46,536

 

 

 

5.9

%

 

 

45.9

%

Other real estate owned

 

 

785

 

 

 

1,200

 

 

 

3,712

 

 

 

(34.6

)%

 

 

(78.8

)%

Total non-performing assets

 

$

68,684

 

 

$

65,307

 

 

$

50,248

 

 

 

5.2

%

 

 

36.7

%

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

 

 

1.00

%

 

 

0.96

%

 

 

0.84

%

 

 

 

 

 

 

Total non-performing assets as a percentage of total assets

 

 

0.73

%

 

 

0.74

%

 

 

0.67

%

 

 

 

 

 

 

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

 

 

150.76

%

 

 

158.62

%

 

 

194.40

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Non-accrual loans guaranteed

 

$

7,138

 

 

$

4,154

 

 

$

2,335

 

 

 

71.8

%

 

 

205.6

%

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

 

 

—

 

 

 

—

 

 

 

—

 

 

—%

 

 

—%

 

Total non-performing loans guaranteed

 

$

7,138

 

 

$

4,154

 

 

$

2,335

 

 

 

71.8

%

 

 

205.6

%

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

 

 

0.90

%

 

 

0.90

%

 

 

0.80

%

 

 

 

 

 

 

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

 

 

0.65

%

 

 

0.69

%

 

 

0.64

%

 

 

 

 

 

 

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

 

 

 

 

 

 

 

 

 

 

 

March 31, 2024

 

 

 

 

 

 

 

 

 

 

 

 

Change from

 

(dollars in thousands)

 

March 31, 2024

 

 

December 31, 2023

 

 

March 31, 2023

 

 

December 31, 2023

 

 

March 31, 2023

 

Non-interest-bearing demand deposits

 

$

1,851,727

 

 

$

1,905,876

 

 

$

1,952,045

 

 

 

(2.8

)%

 

 

(5.1

)%

Interest-bearing checking accounts

 

 

687,142

 

 

 

577,609

 

 

 

560,837

 

 

 

19.0

%

 

 

22.5

%

Money market demand accounts

 

 

2,263,819

 

 

 

2,266,030

 

 

 

1,453,688

 

 

 

(0.1

)%

 

 

55.7

%

Other savings

 

 

524,890

 

 

 

542,532

 

 

 

590,231

 

 

 

(3.3

)%

 

 

(11.1

)%

Time deposits (below $250,000)

 

 

1,594,290

 

 

 

1,520,082

 

 

 

1,089,785

 

 

 

4.9

%

 

 

46.3

%

Time deposits ($250,000 and above)

 

 

428,334

 

 

 

364,870

 

 

 

166,066

 

 

 

17.4

%

 

 

157.9

%

Total deposits

 

$

7,350,202

 

 

$

7,176,999

 

 

$

5,812,652

 

 

 

2.4

%

 

 

26.5

%

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

 

 

 

March 31,

 

 

December 31,

 

 

March 31,

 

(dollars in thousands, except per share data)

 

2024

 

 

2023

 

 

2023

 

Net income and earnings per share excluding significant items:

 

 

 

 

 

 

 

 

 

Reported Net Income

 

$

30,440

 

 

$

29,604

 

 

$

23,945

 

Significant items:

 

 

 

 

 

 

 

 

 

Impairment charges on assets held for sale and ROU assets

 

 

194

 

 

 

1,981

 

 

 

20

 

Merger-related expenses

 

 

—

 

 

 

1,035

 

 

 

489

 

Tax benefit

 

 

(52

)

 

 

(793

)

 

 

(56

)

Adjusted Net Income

 

$

30,582

 

 

$

31,827

 

 

$

24,398

 

Reported Diluted Earnings per Share

 

$

0.70

 

 

$

0.68

 

 

$

0.64

 

Significant items:

 

 

 

 

 

 

 

 

 

Impairment charges on assets held for sale and ROU assets

 

 

—

 

 

 

0.05

 

 

 

—

 

Merger-related expenses

 

 

—

 

 

 

0.02

 

 

 

0.01

 

Tax benefit

 

 

—

 

 

 

(0.02

)

 

 

—

 

Adjusted Diluted Earnings per Share

 

$

0.70

 

 

$

0.73

 

 

$

0.65

 

BYLINE BANCORP, INC. AND SUBSIDIARIES

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

 

 

 

As of or For the Three Months Ended

 

(dollars in thousands, except per share data,

 

March 31,

 

 

December 31,

 

 

March 31,

 

ratios annualized, where applicable)

 

2024

 

 

2023

 

 

2023

 

Adjusted non-interest expense:

 

 

 

 

 

 

 

 

 

Non-interest expense

 

$

53,809

 

 

$

53,584

 

 

$

48,800

 

Less: Significant items

 

 

 

 

 

 

 

 

 

Impairment charges on assets held for sale and ROU assets

 

 

194

 

 

 

1,981

 

 

 

20

 

Merger-related expenses

 

 

—

 

 

 

1,035

 

 

 

489

 

Adjusted non-interest expense

 

$

53,615

 

 

$

50,568

 

 

$

48,291

 

Adjusted non-interest expense excluding amortization of intangible assets:

 

 

 

 

 

 

 

 

 

Adjusted non-interest expense

 

$

53,615

 

 

$

50,568

 

 

$

48,291

 

Less: Amortization of intangible assets

 

 

1,345

 

 

 

1,550

 

 

 

1,455

 

Adjusted non-interest expense excluding amortization of intangible assets

 

$

52,270

 

 

$

49,018

 

 

$

46,836

 

Pre-tax pre-provision net income:

 

 

 

 

 

 

 

 

 

Pre-tax income

 

$

40,562

 

 

$

39,969

 

 

$

32,238

 

Add: Provision for credit losses

 

 

6,643

 

 

 

7,235

 

 

 

9,825

 

Pre-tax pre-provision net income

 

$

47,205

 

 

$

47,204

 

 

$

42,063

 

Adjusted pre-tax pre-provision net income:

 

 

 

 

 

 

 

 

 

Pre-tax pre-provision net income

 

$

47,205

 

 

$

47,204

 

 

$

42,063

 

Add: Impairment charges on assets held for sale and ROU assets

 

 

194

 

 

 

1,981

 

 

 

20

 

Add: Merger-related expenses

 

 

—

 

 

 

1,035

 

 

 

489

 

Adjusted pre-tax pre-provision net income

 

$

47,399

 

 

$

50,220

 

 

$

42,572

 

Tax equivalent net interest income:

 

 

 

 

 

 

 

 

 

Net interest income

 

$

85,541

 

 

$

86,285

 

 

$

75,718

 

Add: Tax-equivalent adjustment

 

 

233

 

 

 

240

 

 

 

208

 

Net interest income, fully taxable equivalent

 

$

85,774

 

 

$

86,525

 

 

$

75,926

 

Total revenue:

 

 

 

 

 

 

 

 

 

Net interest income

 

$

85,541

 

 

$

86,285

 

 

$

75,718

 

Add: Non-interest income

 

 

15,473

 

 

 

14,503

 

 

 

15,145

 

Total revenue

 

$

101,014

 

 

$

100,788

 

 

$

90,863

 

Tangible common stockholders' equity:

 

 

 

 

 

 

 

 

 

Total stockholders' equity

 

$

1,009,049

 

 

$

990,151

 

 

$

795,650

 

Less: Goodwill and other intangibles

 

 

202,133

 

 

 

203,478

 

 

 

157,432

 

Tangible common stockholders' equity

 

$

806,916

 

 

$

786,673

 

 

$

638,218

 

Tangible assets:

 

 

 

 

 

 

 

 

 

Total assets

 

$

9,410,503

 

 

$

8,881,967

 

 

$

7,530,346

 

Less: Goodwill and other intangibles

 

 

202,133

 

 

 

203,478

 

 

 

157,432

 

Tangible assets

 

$

9,208,370

 

 

$

8,678,489

 

 

$

7,372,914

 

Average tangible common stockholders' equity:

 

 

 

 

 

 

 

 

 

Average total stockholders' equity

 

$

998,806

 

 

$

935,197

 

 

$

784,289

 

Less: Average goodwill and other intangibles

 

 

202,773

 

 

 

204,191

 

 

 

158,181

 

Average tangible common stockholders' equity

 

$

796,033

 

 

$

731,006

 

 

$

626,108

 

Average tangible assets:

 

 

 

 

 

 

 

 

 

Average total assets

 

$

9,030,941

 

 

$

8,787,636

 

 

$

7,345,151

 

Less: Average goodwill and other intangibles

 

 

202,773

 

 

 

204,191

 

 

 

158,181

 

Average tangible assets

 

$

8,828,168

 

 

$

8,583,445

 

 

$

7,186,970

 

Tangible net income available to common stockholders:

 

 

 

 

 

 

 

 

 

Net income available to common stockholders

 

$

30,440

 

 

$

29,604

 

 

$

23,945

 

Add: After-tax intangible asset amortization

 

 

986

 

 

 

1,138

 

 

 

1,066

 

Tangible net income available to common stockholders

 

$

31,426

 

 

$

30,742

 

 

$

25,011

 

Adjusted tangible net income available to common stockholders:

 

 

 

 

 

 

 

 

 

Tangible net income available to common stockholders

 

$

31,426

 

 

$

30,742

 

 

$

25,011

 

Impairment charges on assets held for sale and ROU assets

 

 

194

 

 

 

1,981

 

 

 

20

 

Merger-related expenses

 

 

—

 

 

 

1,035

 

 

 

489

 

Tax benefit on significant items

 

 

(52

)

 

 

(793

)

 

 

(56

)

Adjusted tangible net income available to common stockholders

 

$

31,568

 

 

$

32,965

 

 

$

25,464

 

BYLINE BANCORP, INC. AND SUBSIDIARIES

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

 

 

 

As of or For the Three Months Ended

 

(dollars in thousands, except share and per share

 

March 31,

 

 

December 31,

 

 

March 31,

 

data, ratios annualized, where applicable)

 

2024

 

 

2023

 

 

2023

 

Pre-tax pre-provision return on average assets:

 

 

 

 

 

 

 

 

 

Pre-tax pre-provision net income

 

$

47,205

 

 

$

47,204

 

 

$

42,063

 

Average total assets

 

 

9,030,941

 

 

 

8,787,636

 

 

 

7,345,151

 

Pre-tax pre-provision return on average assets

 

 

2.10

%

 

 

2.13

%

 

 

2.32

%

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

 

 

 

 

 

 

 

 

 

Adjusted pre-tax pre-provision net income

 

$

47,399

 

 

$

50,220

 

 

$

42,572

 

Average total assets

 

 

9,030,941

 

 

 

8,787,636

 

 

 

7,345,151

 

Adjusted pre-tax pre-provision return on average assets

 

 

2.11

%

 

 

2.27

%

 

 

2.35

%

Net interest margin, fully taxable equivalent:

 

 

 

 

 

 

 

 

 

Net interest income, fully taxable equivalent

 

$

85,774

 

 

$

86,525

 

 

$

75,926

 

Total average interest-earning assets

 

 

8,603,582

 

 

 

8,387,877

 

 

 

7,009,144

 

Net interest margin, fully taxable equivalent

 

 

4.01

%

 

 

4.09

%

 

 

4.39

%

Non-interest income to total revenues:

 

 

 

 

 

 

 

 

 

Non-interest income

 

$

15,473

 

 

$

14,503

 

 

$

15,145

 

Total revenues

 

 

101,014

 

 

 

100,788

 

 

 

90,863

 

Non-interest income to total revenues

 

 

15.32

%

 

 

14.39

%

 

 

16.67

%

Adjusted non-interest expense to average assets:

 

 

 

 

 

 

 

 

 

Adjusted non-interest expense

 

$

53,615

 

 

$

50,568

 

 

$

48,291

 

Average total assets

 

 

9,030,941

 

 

 

8,787,636

 

 

 

7,345,151

 

Adjusted non-interest expense to average assets

 

 

2.39

%

 

 

2.28

%

 

 

2.67

%

Adjusted efficiency ratio:

 

 

 

 

 

 

 

 

 

Adjusted non-interest expense excluding amortization of intangible assets

 

$

52,270

 

 

$

49,018

 

 

$

46,836

 

Total revenues

 

 

101,014

 

 

 

100,788

 

 

 

90,863

 

Adjusted efficiency ratio

 

 

51.75

%

 

 

48.64

%

 

 

51.54

%

Adjusted return on average assets:

 

 

 

 

 

 

 

 

 

Adjusted net income

 

$

30,582

 

 

$

31,827

 

 

$

24,398

 

Average total assets

 

 

9,030,941

 

 

 

8,787,636

 

 

 

7,345,151

 

Adjusted return on average assets

 

 

1.36

%

 

 

1.44

%

 

 

1.35

%

Adjusted return on average stockholders' equity:

 

 

 

 

 

 

 

 

 

Adjusted net income

 

$

30,582

 

 

$

31,827

 

 

$

24,398

 

Average stockholders' equity

 

 

998,806

 

 

 

935,197

 

 

 

784,289

 

Adjusted return on average stockholders' equity

 

 

12.31

%

 

 

13.50

%

 

 

12.62

%

Tangible common equity to tangible assets:

 

 

 

 

 

 

 

 

 

Tangible common equity

 

$

806,916

 

 

$

786,673

 

 

$

638,218

 

Tangible assets

 

 

9,208,370

 

 

 

8,678,489

 

 

 

7,372,914

 

Tangible common equity to tangible assets

 

 

8.76

%

 

 

9.06

%

 

 

8.66

%

Return on average tangible common stockholders' equity:

 

 

 

 

 

 

 

 

 

Tangible net income available to common stockholders

 

$

31,426

 

 

$

30,742

 

 

$

25,011

 

Average tangible common stockholders' equity

 

 

796,033

 

 

 

731,006

 

 

 

626,108

 

Return on average tangible common stockholders' equity

 

 

15.88

%

 

 

16.68

%

 

 

16.20

%

Adjusted return on average tangible common stockholders' equity:

 

 

 

 

 

 

 

 

 

Adjusted tangible net income available to common stockholders

 

$

31,568

 

 

$

32,965

 

 

$

25,464

 

Average tangible common stockholders' equity

 

 

796,033

 

 

 

731,006

 

 

 

626,108

 

Adjusted return on average tangible common stockholders' equity

 

 

15.95

%

 

 

17.89

%

 

 

16.49

%

Tangible book value per share:

 

 

 

 

 

 

 

 

 

Tangible common equity

 

$

806,916

 

 

$

786,673

 

 

$

638,218

 

Common shares outstanding

 

 

44,108,387

 

 

 

43,764,056

 

 

 

37,713,427

 

Tangible book value per share

 

$

18.29

 

 

$

17.98

 

 

$

16.92

 

 

View source version on businesswire.com: https://www.businesswire.com/news/home/20240425586707/en/

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