BY Byline Bancorp Inc

Net income of $29.7 million, $0.68 diluted earnings per share

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

 

 

 

 

For the quarter

 

Second Quarter Highlights

(compared to 1Q24, unless otherwise specified)

 

 

 

2Q24

 

1Q24

 

2Q23

Financial Results ($ in thousands)

 

 

 

 

 

 

 

 

 

 

• ROAA of 1.31%; PTPP ROAA of 2.03%(1)

 

Net interest income

 

$

86,526

 

$

85,541

 

$

76,166

 

 

 

Non-interest income

 

 

12,844

 

 

15,473

 

 

14,291

 

• TBV per share of $18.84(1), up 8.1% YoY

 

Total Revenue(1)

 

 

99,370

 

 

101,014

 

 

90,457

 

 

 

Non-interest expense (NIE)

 

 

53,210

 

 

53,809

 

 

49,328

 

• Named a "Best Company to Work For in the

 

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

 

 

46,160

 

 

47,205

 

 

41,129

 

Midwest" by US News and World Report

 

Provision for credit losses

 

 

6,045

 

 

6,643

 

 

5,790

 

 

 

Provision for income taxes

 

 

10,444

 

 

10,122

 

 

9,232

 

• Consolidated two branches, have reduced

 

Net Income

 

$

29,671

 

$

30,440

 

$

26,107

 

branch footprint ~60% since 2013

 

 

 

 

 

 

 

 

 

 

 

 

 

Per Share

 

 

 

 

 

 

 

 

 

 

Income Statement

 

Diluted EPS

 

$

0.68

 

$

0.70

 

$

0.70

 

• Net interest income of $86.5 million,

 

Dividends declared per common share

 

 

0.09

 

 

0.09

 

 

0.09

 

up $985,000, or 1.2%

 

Book value per share

 

 

23.38

 

 

22.88

 

 

21.56

 

 

 

Tangible book value per share(1)

 

 

18.84

 

 

18.29

 

 

17.43

 

• Tax equivalent NIM of 3.99%(1)

 

 

 

Balance Sheet & Credit Quality ($ in thousands)

 

 

 

 

 

 

 

 

 

 

• NIE down 1.1%; NIE/AA 2.34%, down six bps

 

Total deposits

 

$

7,347,181

 

$

7,350,202

 

$

5,917,092

 

 

 

Total loans and leases

 

 

6,904,564

 

 

6,801,782

 

 

5,596,512

 

• Net gain on sales of loans of $6.0 million,

 

Net charge-offs (NCO)

 

 

9,514

 

 

6,211

 

 

4,267

 

up $503,000, or 9.1%

 

Allowance for credit losses (ACL)

 

 

99,730

 

 

102,366

 

 

92,665

 

 

 

ACL to total loans and leases held for investment

 

 

1.45%

 

 

1.51%

 

 

1.66%

 

• Efficiency ratio of 52.19%(1)

 

 

 

 

 

 

 

 

 

 

 

 

 

Select Ratios (annualized where applicable)

 

 

 

 

 

 

 

 

 

 

Balance Sheet

 

Efficiency ratio(1)

 

 

52.19%

 

 

51.94%

 

 

52.92%

 

• Total loans and leases grew $102.8 million,

 

Return on average assets (ROAA)

 

 

1.31%

 

 

1.36%

 

 

1.41%

 

or 6.1%(2)

 

Return on average stockholders' equity

 

 

11.83%

 

 

12.26%

 

 

12.99%

 

 

 

Return on average tangible common equity(1)

 

 

15.27%

 

 

15.88%

 

 

16.78%

 

• Total assets grew $223.3 million, or 9.5%(2)

 

Net Interest Margin (NIM)

 

 

3.98%

 

 

4.00%

 

 

4.32%

 

 

 

Common equity to total assets

 

 

10.72%

 

 

10.72%

 

 

10.74%

 

• NPAs down $4.1 million, or 24.0%(2)

 

Tangible common equity to tangible assets(1)

 

 

8.82%

 

 

8.76%

 

 

8.87%

 

 

 

Common Equity Tier 1

 

 

10.84%

 

 

10.59%

 

 

10.58%

 

• Total deposits of $7.3 billion, flat QoQ

(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 second quarter results remained strong, and we are pleased with our overall performance for the first half of the year. Our results continue to show the progress we are making in becoming the preeminent commercial bank in Chicago."

Alberto J. Paracchini, President of Byline Bancorp, added, "We delivered another quarter of strong earnings, profitability, and continue to show discipline in managing expenses. We executed well on our commercial banking strategy driven by solid loan and relationship growth, which is benefiting from the contributions of new banking talent we've added over the past couple of years. I would like to thank all our employees, who again enabled our strong performance, for their dedication and hard work."

Board Declares Cash Dividend of $0.09 per Share

On July 23, 2024, the Company's Board of Directors declared a cash dividend of $0.09 per share, payable on August 20, 2024, to stockholders of record of the Company's common stock as of August 6, 2024.

STATEMENTS OF OPERATIONS HIGHLIGHTS

Net Interest Income

Net interest income for the second quarter of 2024 was $86.5 million, an increase of $985,000, or 1.2%, from the first quarter of 2024. The increase in net interest income was primarily due to a $2.7 million increase in interest and fees on loans and leases due to the growth in the loan and lease portfolio, partially offset by an increase of $1.6 million in deposit interest expense, primarily driven by higher rates paid on interest checking.

Tax-equivalent net interest margin(1) for the second quarter of 2024 was 3.99%, a decrease of two basis points compared to the first quarter of 2024. Net loan accretion income positively contributed 17 basis points to the net interest margin for the current quarter compared to 20 basis points for the prior quarter.

The average cost of total deposits was 2.63% for the second quarter of 2024, an increase of seven basis points compared to the first quarter of 2024, as a result of higher rates on interest checking accounts. Average non-interest-bearing demand deposits were 25.0% of average total deposits for the current quarter compared to 25.9% during the prior quarter.

Provision for Credit Losses

The provision for credit losses was $6.0 million for the second quarter of 2024, a decrease of $598,000 compared to $6.6 million for the first quarter of 2024, mainly attributed to improvements in the collectively assessed portfolio, partially offset by an increase in the allocation for individually assessed government guaranteed loans. 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 of the provision for unfunded commitments of $833,000.

Non-interest Income

Non-interest income for the second quarter of 2024 was $12.8 million, a decrease of $2.6 million, or 17.0%, compared to $15.5 million for the first quarter of 2024. The decrease in total non-interest income was primarily due to a $1.8 million increase in the downward revaluation of the loan servicing asset due to a decline in overall serviced loan balances and higher prepayment speeds.

Net gains on sales of loans were $6.0 million for the current quarter, an increase of $503,000, or 9.1% compared to the prior quarter. During the second quarter of 2024, we sold $73.9 million of U.S. government guaranteed loans compared to $72.5 million during the first quarter of 2024.

Non-interest Expense

Non-interest expense for the second quarter of 2024 was $53.2 million, a decrease of $599,000, or 1.1%, from $53.8 million for the first quarter of 2024. The decrease in non-interest expense was mainly due to a decrease of $884,000 in other non-interest expense, mainly due to branch consolidation charges taken in the first quarter, and a $645,000 decrease in occupancy and equipment expense, net, due to lower seasonal expenses compared to the prior quarter. These decreases were offset by a $989,000 increase in legal, audit, and other professional fees primarily due to professional services associated with our strategic growth planning and initiatives.

Our efficiency ratio was 52.19% for the second quarter of 2024 compared to 51.94% for the first quarter of 2024, an increase of 25 basis points.

Income Taxes

We recorded income tax expense of $10.4 million during the second quarter of 2024, compared to $10.1 million during the first quarter of 2024. The effective tax rates were 26.0% and 25.0% for the second quarter of 2024 and first quarter of 2024, respectively. The increase in the effective tax rate was due to higher income tax benefits on share-based compensation recorded in the first quarter of 2024.

(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 $9.6 billion as of June 30, 2024, an increase of $223.3 million, or 2.4%, compared to $9.4 billion at March 31, 2024. The increase was primarily due to an increase in net loans and leases held for investment of $115.6 million, mainly due to increases in the commercial and industrial and commercial real estate portfolios, and an increase in cash and cash equivalents of $93.6 million, primarily due to increases to balances held at the Federal Reserve Bank.

Asset and Credit Quality

The ACL was $99.7 million as of June 30, 2024, a decrease of $2.6 million, or 2.6%, from $102.4 million at March 31, 2024. Net charge-offs of loans and leases during the second quarter of 2024 were $9.5 million, or 0.56% of average loans and leases, on an annualized basis. This was an increase of $3.3 million compared to net charge-offs of $6.2 million, or 0.37% of average loans and leases, during the first quarter of 2024. The increase is primarily due to an acquired commercial and industrial loan relationship, as well as increased net charge-offs in our originated commercial and industrial portfolio.

Non-performing assets were $64.6 million, or 0.67% of total assets, as of June 30, 2024, a decrease of $4.1 million from $68.7 million, or 0.73% of total assets, at March 31, 2024. The decrease was primarily the result of changes in the commercial and industrial portfolio. The government guaranteed portion of non-performing loans was $6.6 million at June 30, 2024 compared to $7.1 million at March 31, 2024.

Deposits and Other Liabilities

Total deposits decreased $3.0 million to $7.3 billion at June 30, 2024 compared to $7.4 billion at March 31, 2024. The decrease in deposits in the current quarter was mainly due to reduced reliance on brokered deposits.

Total borrowings and other liabilities were $1.3 billion at June 30, 2024, an increase of $202.4 million from $1.1 billion at March 31, 2024, primarily driven by a $200.0 million increase in Federal Home Loan Bank advances.

Stockholders’ Equity

Total stockholders’ equity was $1.0 billion at June 30, 2024, and increase of $24.0 million from March 31, 2024, primarily due to retained earnings from net income.

(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, July 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 298462. A recorded replay can be accessed through August 9, 2024, by dialing (866) 813-9403; passcode: 804686.

A slide presentation relating to our second 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 $9.6 billion in assets and operates 46 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)

 

 

 

 

 

 

 

 

 

 

 

 

June 30,

 

 

March 31,

 

 

June 30,

 

(dollars in thousands)

 

2024

 

 

2024

 

 

2023

 

ASSETS

 

 

 

 

 

 

 

 

 

Cash and due from banks

 

$

68,251

 

 

$

58,640

 

 

$

59,564

 

Interest bearing deposits with other banks

 

 

662,206

 

 

 

578,197

 

 

 

260,621

 

Cash and cash equivalents

 

 

730,457

 

 

 

636,837

 

 

 

320,185

 

Equity and other securities, at fair value

 

 

8,745

 

 

 

9,135

 

 

 

18,473

 

Securities available-for-sale, at fair value

 

 

1,386,827

 

 

 

1,379,147

 

 

 

1,125,700

 

Securities held-to-maturity, at amortized cost

 

 

606

 

 

 

1,156

 

 

 

2,158

 

Restricted stock, at cost

 

 

31,775

 

 

 

22,793

 

 

 

24,377

 

Loans held for sale

 

 

13,360

 

 

 

23,568

 

 

 

25,995

 

Loans and leases:

 

 

 

 

 

 

 

 

 

Loans and leases

 

 

6,891,204

 

 

 

6,778,214

 

 

 

5,570,517

 

Allowance for credit losses - loans and leases

 

 

(99,730

)

 

 

(102,366

)

 

 

(92,665

)

Net loans and leases

 

 

6,791,474

 

 

 

6,675,848

 

 

 

5,477,852

 

Servicing assets, at fair value

 

 

19,617

 

 

 

20,992

 

 

 

21,715

 

Premises and equipment, net

 

 

63,919

 

 

 

64,466

 

 

 

56,304

 

Goodwill and other intangible assets, net

 

 

200,788

 

 

 

202,133

 

 

 

155,977

 

Bank-owned life insurance

 

 

98,519

 

 

 

97,748

 

 

 

83,222

 

Deferred tax assets, net

 

 

48,888

 

 

 

53,029

 

 

 

66,895

 

Accrued interest receivable and other assets

 

 

238,840

 

 

 

223,651

 

 

 

196,837

 

Total assets

 

$

9,633,815

 

 

$

9,410,503

 

 

$

7,575,690

 

LIABILITIES AND STOCKHOLDERS’ EQUITY

 

 

 

 

 

 

 

 

 

LIABILITIES

 

 

 

 

 

 

 

 

 

Non-interest-bearing demand deposits

 

$

1,762,891

 

 

$

1,851,727

 

 

$

1,793,749

 

Interest-bearing deposits

 

 

5,584,290

 

 

 

5,498,475

 

 

 

4,123,343

 

Total deposits

 

 

7,347,181

 

 

 

7,350,202

 

 

 

5,917,092

 

Other borrowings

 

 

918,738

 

 

 

721,173

 

 

 

574,922

 

Subordinated notes, net

 

 

73,953

 

 

 

73,909

 

 

 

73,778

 

Junior subordinated debentures issued to capital trusts, net

 

 

70,675

 

 

 

70,567

 

 

 

37,557

 

Accrued interest payable and other liabilities

 

 

190,254

 

 

 

185,603

 

 

 

158,399

 

Total liabilities

 

 

8,600,801

 

 

 

8,401,454

 

 

 

6,761,748

 

STOCKHOLDERS’ EQUITY

 

 

 

 

 

 

 

 

 

Common stock

 

 

452

 

 

 

452

 

 

 

391

 

Additional paid-in capital

 

 

710,792

 

 

 

708,844

 

 

 

599,718

 

Retained earnings

 

 

481,232

 

 

 

455,532

 

 

 

379,078

 

Treasury stock

 

 

(47,993

)

 

 

(48,869

)

 

 

(50,383

)

Accumulated other comprehensive loss, net of tax

 

 

(111,469

)

 

 

(106,910

)

 

 

(114,862

)

Total stockholders’ equity

 

 

1,033,014

 

 

 

1,009,049

 

 

 

813,942

 

Total liabilities and stockholders’ equity

 

$

9,633,815

 

 

$

9,410,503

 

 

$

7,575,690

 

BYLINE BANCORP, INC. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF OPERATIONS (unaudited)

 

 

 

Three Months Ended

 

 

 

June 30,

 

 

March 31,

 

 

June 30,

 

(dollars in thousands, except per share data)

 

2024

 

 

2024

 

 

2023

 

INTEREST AND DIVIDEND INCOME

 

 

 

 

 

 

 

 

 

Interest and fees on loans and leases

 

$

126,523

 

 

$

123,792

 

 

$

99,134

 

Interest on securities

 

 

10,514

 

 

 

9,734

 

 

 

6,559

 

Other interest and dividend income

 

 

4,532

 

 

 

4,795

 

 

 

1,579

 

Total interest and dividend income

 

 

141,569

 

 

 

138,321

 

 

 

107,272

 

INTEREST EXPENSE

 

 

 

 

 

 

 

 

 

Deposits

 

 

47,603

 

 

 

45,962

 

 

 

24,723

 

Other borrowings

 

 

4,460

 

 

 

3,824

 

 

 

4,241

 

Subordinated notes and debentures

 

 

2,980

 

 

 

2,994

 

 

 

2,142

 

Total interest expense

 

 

55,043

 

 

 

52,780

 

 

 

31,106

 

Net interest income

 

 

86,526

 

 

 

85,541

 

 

 

76,166

 

PROVISION FOR CREDIT LOSSES

 

 

6,045

 

 

 

6,643

 

 

 

5,790

 

Net interest income after provision for credit losses

 

 

80,481

 

 

 

78,898

 

 

 

70,376

 

NON-INTEREST INCOME

 

 

 

 

 

 

 

 

 

Fees and service charges on deposits

 

 

2,548

 

 

 

2,427

 

 

 

2,233

 

Loan servicing revenue

 

 

3,216

 

 

 

3,364

 

 

 

3,377

 

Loan servicing asset revaluation

 

 

(2,468

)

 

 

(703

)

 

 

(865

)

ATM and interchange fees

 

 

1,163

 

 

 

1,075

 

 

 

1,112

 

Change in fair value of equity securities, net

 

 

(390

)

 

 

392

 

 

 

193

 

Net gains on sales of loans

 

 

6,036

 

 

 

5,533

 

 

 

5,704

 

Wealth management and trust income

 

 

942

 

 

 

1,157

 

 

 

1,039

 

Other non-interest income

 

 

1,797

 

 

 

2,228

 

 

 

1,498

 

Total non-interest income

 

 

12,844

 

 

 

15,473

 

 

 

14,291

 

NON-INTEREST EXPENSE

 

 

 

 

 

 

 

 

 

Salaries and employee benefits

 

 

33,911

 

 

 

33,953

 

 

 

29,642

 

Occupancy and equipment expense, net

 

 

4,639

 

 

 

5,284

 

 

 

4,404

 

Loan and lease related expenses

 

 

741

 

 

 

685

 

 

 

488

 

Legal, audit, and other professional fees

 

 

3,708

 

 

 

2,719

 

 

 

3,675

 

Data processing

 

 

4,036

 

 

 

4,145

 

 

 

4,272

 

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

 

 

(62

)

 

 

(98

)

 

 

288

 

Other intangible assets amortization expense

 

 

1,345

 

 

 

1,345

 

 

 

1,455

 

Other non-interest expense

 

 

4,892

 

 

 

5,776

 

 

 

5,104

 

Total non-interest expense

 

 

53,210

 

 

 

53,809

 

 

 

49,328

 

INCOME BEFORE PROVISION FOR INCOME TAXES

 

 

40,115

 

 

 

40,562

 

 

 

35,339

 

PROVISION FOR INCOME TAXES

 

 

10,444

 

 

 

10,122

 

 

 

9,232

 

NET INCOME

 

$

29,671

 

 

$

30,440

 

 

$

26,107

 

EARNINGS PER COMMON SHARE

 

 

 

 

 

 

 

 

 

Basic

 

$

0.68

 

 

$

0.70

 

 

$

0.70

 

Diluted

 

$

0.68

 

 

$

0.70

 

 

$

0.70

 

BYLINE BANCORP, INC. AND SUBSIDIARIES

SELECTED FINANCIAL DATA (unaudited)

 

 

As of or For the Three Months Ended

 

(dollars in thousands, except share

June 30,

 

 

March 31,

 

 

June 30,

 

and per share data)

2024

 

 

2024

 

 

2023

 

Earnings per Common Share

 

 

 

 

 

 

 

 

Basic earnings per common share

$

0.68

 

 

$

0.70

 

 

$

0.70

 

Diluted earnings per common share

$

0.68

 

 

$

0.70

 

 

$

0.70

 

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

$

0.68

 

 

$

0.70

 

 

$

0.73

 

Weighted average common shares outstanding (basic)

 

43,361,516

 

 

 

43,258,087

 

 

 

37,034,626

 

Weighted average common shares outstanding (diluted)

 

43,741,840

 

 

 

43,727,344

 

 

 

37,337,906

 

Common shares outstanding

 

44,180,829

 

 

 

44,108,387

 

 

 

37,752,002

 

Cash dividends per common share

$

0.09

 

 

$

0.09

 

 

$

0.09

 

Dividend payout ratio on common stock

 

13.24

%

 

 

12.86

%

 

 

12.86

%

Book value per common share

$

23.38

 

 

$

22.88

 

 

$

21.56

 

Tangible book value per common share(1)

$

18.84

 

 

$

18.29

 

 

$

17.43

 

Key Ratios and Performance Metrics (annualized where applicable)

 

 

 

 

 

 

 

 

Net interest margin

 

3.98

%

 

 

4.00

%

 

 

4.32

%

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

 

3.99

%

 

 

4.01

%

 

 

4.33

%

Average cost of deposits

 

2.63

%

 

 

2.56

%

 

 

1.70

%

Efficiency ratio(1)(2)

 

52.19

%

 

 

51.94

%

 

 

52.92

%

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

 

52.19

%

 

 

51.75

%

 

 

51.39

%

Non-interest income to total revenues(1)

 

12.93

%

 

 

15.32

%

 

 

15.80

%

Non-interest expense to average assets

 

2.34

%

 

 

2.40

%

 

 

2.67

%

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

 

2.34

%

 

 

2.39

%

 

 

2.60

%

Return on average stockholders' equity

 

11.83

%

 

 

12.26

%

 

 

12.99

%

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

 

11.83

%

 

 

12.31

%

 

 

13.56

%

Return on average assets

 

1.31

%

 

 

1.36

%

 

 

1.41

%

Adjusted return on average assets(1)(3)

 

1.31

%

 

 

1.36

%

 

 

1.48

%

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

 

2.03

%

 

 

2.10

%

 

 

2.23

%

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

 

2.03

%

 

 

2.11

%

 

 

2.30

%

Return on average tangible common stockholders' equity(1)

 

15.27

%

 

 

15.88

%

 

 

16.78

%

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

 

15.27

%

 

 

15.95

%

 

 

17.50

%

Non-interest-bearing deposits to total deposits

 

23.99

%

 

 

25.19

%

 

 

30.31

%

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

 

93.98

%

 

 

92.54

%

 

 

94.58

%

Deposits to total liabilities

 

85.42

%

 

 

87.49

%

 

 

87.51

%

Deposits per branch

$

159,721

 

 

$

153,129

 

 

$

155,713

 

Asset Quality Ratios

 

 

 

 

 

 

 

 

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

 

0.93

%

 

 

1.00

%

 

 

0.69

%

Total non-performing assets as a percentage of total assets

 

0.67

%

 

 

0.73

%

 

 

0.54

%

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

 

1.45

%

 

 

1.51

%

 

 

1.66

%

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

 

0.56

%

 

 

0.37

%

 

 

0.31

%

Capital Ratios

 

 

 

 

 

 

 

 

Common equity to total assets

 

10.72

%

 

 

10.72

%

 

 

10.74

%

Tangible common equity to tangible assets(1)

 

8.82

%

 

 

8.76

%

 

 

8.87

%

Leverage ratio

 

11.08

%

 

 

10.91

%

 

 

10.74

%

Common equity tier 1 capital ratio

 

10.84

%

 

 

10.59

%

 

 

10.58

%

Tier 1 capital ratio

 

11.86

%

 

 

11.62

%

 

 

11.22

%

Total capital ratio

 

13.86

%

 

 

13.66

%

 

 

13.52

%

(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 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

 

 

June 30, 2024

 

 

March 31, 2024

 

 

June 30, 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

$

305,873

 

 

$

3,315

 

 

 

4.36

%

 

$

339,449

 

 

$

3,828

 

 

 

4.54

%

 

$

135,003

 

 

$

1,041

 

 

 

3.09

%

Loans and leases(1)

 

6,807,934

 

 

 

126,523

 

 

 

7.47

%

 

 

6,681,488

 

 

 

123,792

 

 

 

7.45

%

 

 

5,535,593

 

 

 

99,134

 

 

 

7.18

%

Taxable securities

 

1,473,000

 

 

 

10,869

 

 

 

2.97

%

 

 

1,422,661

 

 

 

9,822

 

 

 

2.78

%

 

 

1,250,780

 

 

 

6,324

 

 

 

2.03

%

Tax-exempt securities(2)

 

156,655

 

 

 

1,091

 

 

 

2.80

%

 

 

159,984

 

 

 

1,112

 

 

 

2.80

%

 

 

151,205

 

 

 

980

 

 

 

2.60

%

Total interest-earning assets

$

8,743,462

 

 

$

141,798

 

 

 

6.52

%

 

$

8,603,582

 

 

$

138,554

 

 

 

6.48

%

 

$

7,072,581

 

 

$

107,479

 

 

 

6.10

%

Allowance for credit losses - loans and leases

 

(103,266

)

 

 

 

 

 

 

 

 

(102,256

)

 

 

 

 

 

 

 

 

(92,804

)

 

 

 

 

 

 

All other assets

 

500,540

 

 

 

 

 

 

 

 

 

529,615

 

 

 

 

 

 

 

 

 

424,122

 

 

 

 

 

 

 

TOTAL ASSETS

$

9,140,736

 

 

 

 

 

 

 

 

$

9,030,941

 

 

 

 

 

 

 

 

$

7,403,899

 

 

 

 

 

 

 

LIABILITIES AND STOCKHOLDERS’ EQUITY

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Deposits

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest checking

$

717,513

 

 

$

4,096

 

 

 

2.30

%

 

$

590,406

 

 

$

2,429

 

 

 

1.65

%

 

$

541,036

 

 

$

2,175

 

 

 

1.61

%

Money market accounts

 

2,270,231

 

 

 

19,978

 

 

 

3.54

%

 

 

2,237,324

 

 

 

19,660

 

 

 

3.53

%

 

 

1,534,463

 

 

 

10,799

 

 

 

2.82

%

Savings

 

514,192

 

 

 

194

 

 

 

0.15

%

 

 

531,912

 

 

 

197

 

 

 

0.15

%

 

 

575,254

 

 

 

220

 

 

 

0.15

%

Time deposits

 

1,951,448

 

 

 

23,335

 

 

 

4.81

%

 

 

1,992,357

 

 

 

23,676

 

 

 

4.78

%

 

 

1,328,679

 

 

 

11,529

 

 

 

3.48

%

Total interest-bearing deposits

 

5,453,384

 

 

 

47,603

 

 

 

3.51

%

 

 

5,351,999

 

 

 

45,962

 

 

 

3.45

%

 

 

3,979,432

 

 

 

24,723

 

 

 

2.49

%

Other borrowings

 

521,545

 

 

 

4,439

 

 

 

3.42

%

 

 

472,644

 

 

 

3,824

 

 

 

3.25

%

 

 

509,419

 

 

 

4,241

 

 

 

3.34

%

Federal funds purchased

 

1,401

 

 

 

21

 

 

 

6.05

%

 

 

—

 

 

 

—

 

 

 

0.00

%

 

 

—

 

 

 

—

 

 

 

0.00

%

Subordinated notes and debentures

 

144,548

 

 

 

2,980

 

 

 

8.29

%

 

 

144,387

 

 

 

2,994

 

 

 

8.34

%

 

 

111,255

 

 

 

2,142

 

 

 

7.72

%

Total borrowings

 

667,494

 

 

 

7,440

 

 

 

4.48

%

 

 

617,031

 

 

 

6,818

 

 

 

4.44

%

 

 

620,674

 

 

 

6,383

 

 

 

4.12

%

Total interest-bearing liabilities

$

6,120,878

 

 

$

55,043

 

 

 

3.62

%

 

$

5,969,030

 

 

$

52,780

 

 

 

3.56

%

 

$

4,600,106

 

 

$

31,106

 

 

 

2.71

%

Non-interest-bearing demand deposits

 

1,817,133

 

 

 

 

 

 

 

 

 

1,874,322

 

 

 

 

 

 

 

 

 

1,848,538

 

 

 

 

 

 

 

Other liabilities

 

193,923

 

 

 

 

 

 

 

 

 

188,783

 

 

 

 

 

 

 

 

 

148,983

 

 

 

 

 

 

 

Total stockholders’ equity

 

1,008,802

 

 

 

 

 

 

 

 

 

998,806

 

 

 

 

 

 

 

 

 

806,272

 

 

 

 

 

 

 

TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY

$

9,140,736

 

 

 

 

 

 

 

 

$

9,030,941

 

 

 

 

 

 

 

 

$

7,403,899

 

 

 

 

 

 

 

Net interest spread(3)

 

 

 

 

 

 

 

2.90

%

 

 

 

 

 

 

 

 

2.92

%

 

 

 

 

 

 

 

 

3.39

%

Net interest income, fully taxable equivalent

 

 

 

$

86,755

 

 

 

 

 

 

 

 

$

85,774

 

 

 

 

 

 

 

 

$

76,373

 

 

 

 

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

 

 

 

 

 

 

 

3.99

%

 

 

 

 

 

 

 

 

4.01

%

 

 

 

 

 

 

 

 

4.33

%

Less: Tax-equivalent adjustment

 

 

 

 

229

 

 

 

0.01

%

 

 

 

 

 

233

 

 

 

0.01

%

 

 

 

 

 

207

 

 

 

0.01

%

Net interest income

 

 

 

$

86,526

 

 

 

 

 

 

 

 

$

85,541

 

 

 

 

 

 

 

 

$

76,166

 

 

 

 

Net interest margin(4)

 

 

 

 

 

 

 

3.98

%

 

 

 

 

 

 

 

 

4.00

%

 

 

 

 

 

 

 

 

4.32

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net loan accretion impact on margin

 

 

 

$

3,656

 

 

 

0.17

%

 

 

 

 

$

4,284

 

 

 

0.20

%

 

 

 

 

$

611

 

 

 

0.03

%

(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:

 

 

 

June 30, 2024

 

 

March 31, 2024

 

 

June 30, 2023

 

(dollars in thousands)

 

Amount

 

 

% of

Total

 

 

Amount

 

 

% of

Total

 

 

Amount

 

 

% of

Total

 

Originated loans and leases:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Commercial real estate

 

$

1,924,797

 

 

 

27.9

%

 

$

1,879,149

 

 

 

27.7

%

 

$

1,806,531

 

 

 

32.4

%

Residential real estate

 

 

498,578

 

 

 

7.2

%

 

 

488,887

 

 

 

7.2

%

 

 

453,880

 

 

 

8.1

%

Construction, land development, and other land

 

 

445,919

 

 

 

6.5

%

 

 

416,996

 

 

 

6.2

%

 

 

387,623

 

 

 

7.0

%

Commercial and industrial

 

 

2,493,229

 

 

 

36.2

%

 

 

2,420,952

 

 

 

35.7

%

 

 

2,086,274

 

 

 

37.5

%

Installment and other

 

 

2,576

 

 

 

0.0

%

 

 

2,855

 

 

 

0.0

%

 

 

3,582

 

 

 

0.1

%

Leasing financing receivables

 

 

710,784

 

 

 

10.3

%

 

 

691,617

 

 

 

10.2

%

 

 

604,437

 

 

 

10.9

%

Total originated loans and leases

 

$

6,075,883

 

 

 

88.1

%

 

$

5,900,456

 

 

 

87.0

%

 

$

5,342,327

 

 

 

95.9

%

Purchased credit deteriorated loans:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Commercial real estate

 

$

114,053

 

 

 

1.7

%

 

$

117,460

 

 

 

1.7

%

 

$

30,724

 

 

 

0.6

%

Residential real estate

 

 

40,728

 

 

 

0.6

%

 

 

39,535

 

 

 

0.6

%

 

 

26,012

 

 

 

0.5

%

Construction, land development, and other land

 

 

9

 

 

 

0.0

%

 

 

26,418

 

 

 

0.4

%

 

 

320

 

 

 

0.0

%

Commercial and industrial

 

 

17,796

 

 

 

0.3

%

 

 

18,100

 

 

 

0.3

%

 

 

1,726

 

 

 

0.0

%

Installment and other

 

 

116

 

 

 

0.0

%

 

 

118

 

 

 

0.0

%

 

 

129

 

 

 

0.0

%

Total purchased credit deteriorated loans

 

$

172,702

 

 

 

2.6

%

 

$

201,631

 

 

 

3.0

%

 

$

58,911

 

 

 

1.1

%

Acquired non-credit-deteriorated loans and leases:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Commercial real estate

 

$

254,858

 

 

 

3.7

%

 

$

271,720

 

 

 

4.0

%

 

$

126,191

 

 

 

2.3

%

Residential real estate

 

 

188,489

 

 

 

2.7

%

 

 

204,589

 

 

 

3.0

%

 

 

25,055

 

 

 

0.4

%

Construction, land development, and other land

 

 

84,849

 

 

 

1.2

%

 

 

85,553

 

 

 

1.3

%

 

 

—

 

 

 

0.0

%

Commercial and industrial

 

 

113,997

 

 

 

1.7

%

 

 

113,673

 

 

 

1.7

%

 

 

16,750

 

 

 

0.3

%

Installment and other

 

 

153

 

 

 

0.0

%

 

 

166

 

 

 

0.0

%

 

 

25

 

 

 

0.0

%

Leasing financing receivables

 

 

273

 

 

 

0.0

%

 

 

426

 

 

 

0.0

%

 

 

1,258

 

 

 

0.0

%

Total acquired non-credit-deteriorated loans and leases

 

$

642,619

 

 

 

9.3

%

 

$

676,127

 

 

 

10.0

%

 

$

169,279

 

 

 

3.0

%

Total loans and leases

 

$

6,891,204

 

 

 

100.0

%

 

$

6,778,214

 

 

 

100.0

%

 

$

5,570,517

 

 

 

100.0

%

Allowance for credit losses - loans and leases

 

 

(99,730

)

 

 

 

 

 

(102,366

)

 

 

 

 

 

(92,665

)

 

 

 

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

 

$

6,791,474

 

 

 

 

 

$

6,675,848

 

 

 

 

 

$

5,477,852

 

 

 

 

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

 

 

 

Three Months Ended

 

 

 

June 30,

 

 

March 31,

 

 

June 30,

 

(dollars in thousands)

 

2024

 

 

2024

 

 

2023

 

ACL - loans and leases, beginning of period

 

$

102,366

 

 

$

101,686

 

 

$

90,465

 

Provision for credit losses - loans and leases

 

 

6,878

 

 

 

6,891

 

 

 

6,467

 

Net charge-offs - loans and leases

 

 

(9,514

)

 

 

(6,211

)

 

 

(4,267

)

ACL - loans and leases, end of period

 

$

99,730

 

 

$

102,366

 

 

$

92,665

 

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

 

 

0.56

%

 

 

0.37

%

 

 

0.31

%

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

 

 

0.72

x

 

 

1.11

x

 

 

1.52

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:

 

 

 

 

 

 

 

 

 

 

 

 

June 30, 2024

 

 

 

 

 

 

 

 

 

 

 

 

Change from

 

(dollars in thousands)

 

June 30,

2024

 

 

March 31,

2024

 

 

June 30,

2023

 

 

March 31,

2024

 

 

June 30,

2023

 

Non-performing assets:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Non-accrual loans and leases

 

$

63,808

 

 

$

67,899

 

 

$

38,273

 

 

 

(6.0

)%

 

 

66.7

%

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

 

 

—

 

 

 

—

 

 

 

—

 

 

—%

 

 

—%

 

Total non-performing loans and leases

 

$

63,808

 

 

$

67,899

 

 

$

38,273

 

 

 

(6.0

)%

 

 

66.7

%

Other real estate owned

 

 

780

 

 

 

785

 

 

 

2,265

 

 

 

(0.6

)%

 

 

(65.6

)%

Total non-performing assets

 

$

64,588

 

 

$

68,684

 

 

$

40,538

 

 

 

(6.0

)%

 

 

59.3

%

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

 

 

0.93

%

 

 

1.00

%

 

 

0.69

%

 

 

 

 

 

 

Total non-performing assets as a percentage of total assets

 

 

0.67

%

 

 

0.73

%

 

 

0.54

%

 

 

 

 

 

 

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

 

 

156.30

%

 

 

150.76

%

 

 

242.11

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Non-accrual loans guaranteed

 

$

6,616

 

 

$

7,138

 

 

$

2,472

 

 

 

(7.3

)%

 

 

167.6

%

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

 

 

—

 

 

 

—

 

 

 

—

 

 

—%

 

 

—%

 

Total non-performing loans guaranteed

 

$

6,616

 

 

$

7,138

 

 

$

2,472

 

 

 

(7.3

)%

 

 

167.6

%

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

 

 

0.83

%

 

 

0.90

%

 

 

0.64

%

 

 

 

 

 

 

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

 

 

0.60

%

 

 

0.65

%

 

 

0.50

%

 

 

 

 

 

 

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

 

 

 

 

 

 

 

 

 

 

 

 

June 30, 2024

 

 

 

 

 

 

 

 

 

 

 

 

Change from

 

(dollars in thousands)

 

June 30, 2024

 

 

March 31, 2024

 

 

June 30, 2023

 

 

March 31, 2024

 

 

June 30, 2023

 

Non-interest-bearing demand deposits

 

$

1,762,891

 

 

$

1,851,727

 

 

$

1,793,749

 

 

 

(4.8

)%

 

 

(1.7

)%

Interest-bearing checking accounts

 

 

717,229

 

 

 

687,142

 

 

 

530,775

 

 

 

4.4

%

 

 

35.1

%

Money market demand accounts

 

 

2,323,245

 

 

 

2,263,819

 

 

 

1,600,043

 

 

 

2.6

%

 

 

45.2

%

Other savings

 

 

503,935

 

 

 

524,890

 

 

 

562,706

 

 

 

(4.0

)%

 

 

(10.4

)%

Time deposits (below $250,000)

 

 

1,610,308

 

 

 

1,594,290

 

 

 

1,214,717

 

 

 

1.0

%

 

 

32.6

%

Time deposits ($250,000 and above)

 

 

429,573

 

 

 

428,334

 

 

 

215,102

 

 

 

0.3

%

 

 

99.7

%

Total deposits

 

$

7,347,181

 

 

$

7,350,202

 

 

$

5,917,092

 

 

 

(0.0

)%

 

 

24.2

%

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

 

 

 

June 30,

 

 

March 31,

 

 

June 30,

 

(dollars in thousands, except per share data)

 

2024

 

 

2024

 

 

2023

 

Net income and earnings per share excluding significant items:

 

 

 

 

 

 

 

 

 

Reported Net Income

 

$

29,671

 

 

$

30,440

 

 

$

26,107

 

Significant items:

 

 

 

 

 

 

 

 

 

Impairment charges on ROU assets

 

 

—

 

 

 

194

 

 

 

—

 

Merger-related expenses

 

 

—

 

 

 

—

 

 

 

1,391

 

Tax benefit

 

 

—

 

 

 

(52

)

 

 

(230

)

Adjusted Net Income

 

$

29,671

 

 

$

30,582

 

 

$

27,268

 

Reported Diluted Earnings per Share

 

$

0.68

 

 

$

0.70

 

 

$

0.70

 

Significant items:

 

 

 

 

 

 

 

 

 

Impairment charges on ROU assets

 

 

—

 

 

 

—

 

 

 

—

 

Merger-related expenses

 

 

—

 

 

 

—

 

 

 

0.04

 

Tax benefit

 

 

—

 

 

 

—

 

 

 

(0.01

)

Adjusted Diluted Earnings per Share

 

$

0.68

 

 

$

0.70

 

 

$

0.73

 

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,

 

June 30,

 

 

March 31,

 

 

June 30,

 

ratios annualized, where applicable)

 

2024

 

 

2024

 

 

2023

 

Adjusted non-interest expense:

 

 

 

 

 

 

 

 

 

Non-interest expense

 

$

53,210

 

 

$

53,809

 

 

$

49,328

 

Less: Impairment charges on ROU assets

 

 

—

 

 

 

194

 

 

 

—

 

Less: Merger-related expenses

 

 

—

 

 

 

—

 

 

 

1,391

 

Adjusted non-interest expense

 

$

53,210

 

 

$

53,615

 

 

$

47,937

 

Adjusted non-interest expense excluding amortization of intangible assets:

 

 

 

 

 

 

 

 

 

Adjusted non-interest expense

 

$

53,210

 

 

$

53,615

 

 

$

47,937

 

Less: Amortization of intangible assets

 

 

1,345

 

 

 

1,345

 

 

 

1,455

 

Adjusted non-interest expense excluding amortization of intangible assets

 

$

51,865

 

 

$

52,270

 

 

$

46,482

 

Pre-tax pre-provision net income:

 

 

 

 

 

 

 

 

 

Pre-tax income

 

$

40,115

 

 

$

40,562

 

 

$

35,339

 

Add: Provision for credit losses

 

 

6,045

 

 

 

6,643

 

 

 

5,790

 

Pre-tax pre-provision net income

 

$

46,160

 

 

$

47,205

 

 

$

41,129

 

Adjusted pre-tax pre-provision net income:

 

 

 

 

 

 

 

 

 

Pre-tax pre-provision net income

 

$

46,160

 

 

$

47,205

 

 

$

41,129

 

Add: Impairment charges on ROU assets

 

 

—

 

 

 

194

 

 

 

—

 

Add: Merger-related expenses

 

 

—

 

 

 

—

 

 

 

1,391

 

Adjusted pre-tax pre-provision net income

 

$

46,160

 

 

$

47,399

 

 

$

42,520

 

Tax equivalent net interest income:

 

 

 

 

 

 

 

 

 

Net interest income

 

$

86,526

 

 

$

85,541

 

 

$

76,166

 

Add: Tax-equivalent adjustment

 

 

229

 

 

 

233

 

 

 

207

 

Net interest income, fully taxable equivalent

 

$

86,755

 

 

$

85,774

 

 

$

76,373

 

Total revenue:

 

 

 

 

 

 

 

 

 

Net interest income

 

$

86,526

 

 

$

85,541

 

 

$

76,166

 

Add: Non-interest income

 

 

12,844

 

 

 

15,473

 

 

 

14,291

 

Total revenue

 

$

99,370

 

 

$

101,014

 

 

$

90,457

 

Tangible common stockholders' equity:

 

 

 

 

 

 

 

 

 

Total stockholders' equity

 

$

1,033,014

 

 

$

1,009,049

 

 

$

813,942

 

Less: Goodwill and other intangibles

 

 

200,788

 

 

 

202,133

 

 

 

155,977

 

Tangible common stockholders' equity

 

$

832,226

 

 

$

806,916

 

 

$

657,965

 

Tangible assets:

 

 

 

 

 

 

 

 

 

Total assets

 

$

9,633,815

 

 

$

9,410,503

 

 

$

7,575,690

 

Less: Goodwill and other intangibles

 

 

200,788

 

 

 

202,133

 

 

 

155,977

 

Tangible assets

 

$

9,433,027

 

 

$

9,208,370

 

 

$

7,419,713

 

Average tangible common stockholders' equity:

 

 

 

 

 

 

 

 

 

Average total stockholders' equity

 

$

1,008,802

 

 

$

998,806

 

 

$

806,272

 

Less: Average goodwill and other intangibles

 

 

201,428

 

 

 

202,773

 

 

 

156,766

 

Average tangible common stockholders' equity

 

$

807,374

 

 

$

796,033

 

 

$

649,506

 

Average tangible assets:

 

 

 

 

 

 

 

 

 

Average total assets

 

$

9,140,736

 

 

$

9,030,941

 

 

$

7,403,899

 

Less: Average goodwill and other intangibles

 

 

201,428

 

 

 

202,773

 

 

 

156,766

 

Average tangible assets

 

$

8,939,308

 

 

$

8,828,168

 

 

$

7,247,133

 

Tangible net income available to common stockholders:

 

 

 

 

 

 

 

 

 

Net income available to common stockholders

 

$

29,671

 

 

$

30,440

 

 

$

26,107

 

Add: After-tax intangible asset amortization

 

 

987

 

 

 

986

 

 

 

1,067

 

Tangible net income available to common stockholders

 

$

30,658

 

 

$

31,426

 

 

$

27,174

 

Adjusted tangible net income available to common stockholders:

 

 

 

 

 

 

 

 

 

Tangible net income available to common stockholders

 

$

30,658

 

 

$

31,426

 

 

$

27,174

 

Add: Impairment charges on ROU assets

 

 

—

 

 

 

194

 

 

 

—

 

Add: Merger-related expenses

 

 

—

 

 

 

—

 

 

 

1,391

 

Add: Tax benefit on significant items

 

 

—

 

 

 

(52

)

 

 

(230

)

Adjusted tangible net income available to common stockholders

 

$

30,658

 

 

$

31,568

 

 

$

28,335

 

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

 

June 30,

 

 

March 31,

 

 

June 30,

 

data, ratios annualized, where applicable)

 

2024

 

 

2024

 

 

2023

 

Pre-tax pre-provision return on average assets:

 

 

 

 

 

 

 

 

 

Pre-tax pre-provision net income

 

$

46,160

 

 

$

47,205

 

 

$

41,129

 

Average total assets

 

 

9,140,736

 

 

 

9,030,941

 

 

 

7,403,899

 

Pre-tax pre-provision return on average assets

 

 

2.03

%

 

 

2.10

%

 

 

2.23

%

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

 

 

 

 

 

 

 

 

 

Adjusted pre-tax pre-provision net income

 

$

46,160

 

 

$

47,399

 

 

$

42,520

 

Average total assets

 

 

9,140,736

 

 

 

9,030,941

 

 

 

7,403,899

 

Adjusted pre-tax pre-provision return on average assets

 

 

2.03

%

 

 

2.11

%

 

 

2.30

%

Net interest margin, fully taxable equivalent:

 

 

 

 

 

 

 

 

 

Net interest income, fully taxable equivalent

 

$

86,755

 

 

$

85,774

 

 

$

76,373

 

Total average interest-earning assets

 

 

8,743,462

 

 

 

8,603,582

 

 

 

7,072,581

 

Net interest margin, fully taxable equivalent

 

 

3.99

%

 

 

4.01

%

 

 

4.33

%

Non-interest income to total revenues:

 

 

 

 

 

 

 

 

 

Non-interest income

 

$

12,844

 

 

$

15,473

 

 

$

14,291

 

Total revenues

 

 

99,370

 

 

 

101,014

 

 

 

90,457

 

Non-interest income to total revenues

 

 

12.93

%

 

 

15.32

%

 

 

15.80

%

Adjusted non-interest expense to average assets:

 

 

 

 

 

 

 

 

 

Adjusted non-interest expense

 

$

53,210

 

 

$

53,615

 

 

$

47,937

 

Average total assets

 

 

9,140,736

 

 

 

9,030,941

 

 

 

7,403,899

 

Adjusted non-interest expense to average assets

 

 

2.34

%

 

 

2.39

%

 

 

2.60

%

Adjusted efficiency ratio:

 

 

 

 

 

 

 

 

 

Adjusted non-interest expense excluding amortization of intangible assets

 

$

51,865

 

 

$

52,270

 

 

$

46,482

 

Total revenues

 

 

99,370

 

 

 

101,014

 

 

 

90,457

 

Adjusted efficiency ratio

 

 

52.19

%

 

 

51.75

%

 

 

51.39

%

Adjusted return on average assets:

 

 

 

 

 

 

 

 

 

Adjusted net income

 

$

29,671

 

 

$

30,582

 

 

$

27,268

 

Average total assets

 

 

9,140,736

 

 

 

9,030,941

 

 

 

7,403,899

 

Adjusted return on average assets

 

 

1.31

%

 

 

1.36

%

 

 

1.48

%

Adjusted return on average stockholders' equity:

 

 

 

 

 

 

 

 

 

Adjusted net income

 

$

29,671

 

 

$

30,582

 

 

$

27,268

 

Average stockholders' equity

 

 

1,008,802

 

 

 

998,806

 

 

 

806,272

 

Adjusted return on average stockholders' equity

 

 

11.83

%

 

 

12.31

%

 

 

13.56

%

Tangible common equity to tangible assets:

 

 

 

 

 

 

 

 

 

Tangible common equity

 

$

832,226

 

 

$

806,916

 

 

$

657,965

 

Tangible assets

 

 

9,433,027

 

 

 

9,208,370

 

 

 

7,419,713

 

Tangible common equity to tangible assets

 

 

8.82

%

 

 

8.76

%

 

 

8.87

%

Return on average tangible common stockholders' equity:

 

 

 

 

 

 

 

 

 

Tangible net income available to common stockholders

 

$

30,658

 

 

$

31,426

 

 

$

27,174

 

Average tangible common stockholders' equity

 

 

807,374

 

 

 

796,033

 

 

 

649,506

 

Return on average tangible common stockholders' equity

 

 

15.27

%

 

 

15.88

%

 

 

16.78

%

Adjusted return on average tangible common stockholders' equity:

 

 

 

 

 

 

 

 

 

Adjusted tangible net income available to common stockholders

 

$

30,658

 

 

$

31,568

 

 

$

28,335

 

Average tangible common stockholders' equity

 

 

807,374

 

 

 

796,033

 

 

 

649,506

 

Adjusted return on average tangible common stockholders' equity

 

 

15.27

%

 

 

15.95

%

 

 

17.50

%

Tangible book value per share:

 

 

 

 

 

 

 

 

 

Tangible common equity

 

$

832,226

 

 

$

806,916

 

 

$

657,965

 

Common shares outstanding

 

 

44,180,829

 

 

 

44,108,387

 

 

 

37,752,002

 

Tangible book value per share

 

$

18.84

 

 

$

18.29

 

 

$

17.43

 

 

View source version on businesswire.com: https://www.businesswire.com/news/home/20240725278359/en/

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