BY Byline Bancorp Inc

Net income of $30.3 million, $0.69 diluted earnings per share

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

 

 

 

 

At or For the quarter

 

Third Quarter Highlights

(compared to 2Q24, unless otherwise specified)

 

 

 

3Q24

 

2Q24

 

3Q23

Financial Results ($ in thousands)

 

 

 

 

 

 

 

 

 

 

• Announced definitive merger agreement

 

Net interest income

 

$

87,455

 

$

86,526

 

$

92,452

 

with First Security Bancorp, Inc.

 

Non-interest income

 

 

14,385

 

 

12,844

 

 

12,376

 

 

 

Total revenue(1)

 

 

101,840

 

 

99,370

 

 

104,828

 

• ROAA of 1.29%; PTPP ROAA of 2.02%(1)

 

Non-interest expense (NIE)

 

 

54,327

 

 

53,210

 

 

57,891

 

 

 

Pre-tax pre-provision net income(1)

 

 

47,513

 

 

46,160

 

 

46,937

 

• TBV per share of $20.21(1); up 7.3% LQ,

 

Provision for credit losses

 

 

7,475

 

 

6,045

 

 

8,803

 

and 23.6% YoY

 

Provision for income taxes

 

 

9,710

 

 

10,444

 

 

9,912

 

 

 

Net Income

 

$

30,328

 

$

29,671

 

$

28,222

 

• Common equity tier 1 of 11.35%, an increase

 

 

 

 

 

 

 

 

 

 

 

 

of 51 bps

Per Share

 

 

 

 

 

 

 

 

 

 

 

 

Diluted earnings per share (EPS)

 

$

0.69

 

$

0.68

 

$

0.65

 

Income Statement

 

Dividends declared per common share

 

 

0.09

 

 

0.09

 

 

0.09

 

• Net interest income of $87.5 million, an

 

Book value per share

 

 

24.70

 

 

23.38

 

 

21.04

 

increase of $929,000, or 1.1%

 

Tangible book value (TBV) per share(1)

 

 

20.21

 

 

18.84

 

 

16.35

 

 

 

 

• Non-interest income of $14.4 million, an

Balance Sheet & Credit Quality ($ in thousands)

 

 

 

 

 

 

 

 

 

 

increase of $1.5 million, or 12.0%

 

Total deposits

 

$

7,497,887

 

$

7,347,181

 

$

6,953,690

 

 

 

Total loans and leases

 

 

6,899,401

 

 

6,904,564

 

 

6,620,602

 

• NIE/AA 2.31%, down three bps

 

Net charge-offs

 

 

8,467

 

 

9,514

 

 

5,430

 

 

 

Allowance for credit losses (ACL)

 

 

98,860

 

 

99,730

 

 

105,696

 

• Adjusted efficiency ratio of 51.62%(1),

 

ACL to total loans and leases held for investment

 

 

1.44%

 

 

1.45%

 

 

1.60%

 

down by 57 bps

 

 

 

 

 

 

 

 

 

 

 

 

 

Select Ratios (annualized where applicable)

 

 

 

 

 

 

 

 

 

 

Balance Sheet

 

Efficiency ratio(1)

 

 

52.02%

 

 

52.19%

 

 

53.75%

 

• Total deposits grew $150.7 million, or 2.1%

 

Return on average assets (ROAA)

 

 

1.29%

 

 

1.31%

 

 

1.30%

 

 

 

Return on average stockholders' equity

 

 

11.39%

 

 

11.83%

 

 

12.11%

 

• Loan/deposits down 196 bps to 92.02%

 

Return on average tangible common equity(1)

 

 

14.49%

 

 

15.27%

 

 

16.15%

 

 

 

Net interest margin (NIM)

 

 

3.88%

 

 

3.98%

 

 

4.46%

 

• Reduced other borrowings by $400.0 million

 

Common equity to total assets

 

 

11.63%

 

 

10.72%

 

 

10.29%

 

 

 

Tangible common equity to tangible assets(1)

 

 

9.72%

 

 

8.82%

 

 

8.18%

 

• Tangible common equity to tangible assets

 

Common equity tier 1

 

 

11.35%

 

 

10.84%

 

 

10.08%

 

of 9.72%(1), an increase of 90 bps

(1)

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

CEO/President Commentary

 

Roberto R. Herencia, Executive Chairman and CEO of Byline Bancorp, commented, "Our third quarter performance reflects Byline’s continued strong momentum across the franchise as we posted strong results. We are excited about our pending First Security Bancorp, Inc. transaction, which aligns with our long-term M&A strategy. We believe this merger strengthens our position in the market by adding a high-quality franchise with a strong core deposit base. We look forward to welcoming First Security Bank and Trust customers to Byline in 2025."

Alberto J. Paracchini, President of Byline Bancorp, added, "Third quarter results were highlighted by robust earnings, strong profitability, net interest income expansion, solid deposit and fee revenue growth, and controlled non-interest expense. Importantly, we increased tangible book value and continue to maintain excellent balance sheet strength. We remain focused on executing our strategy of becoming the preeminent commercial bank in Chicago while continuing to increase the value of the franchise."

Board Declares Cash Dividend of $0.09 per Share

On October 22, 2024, the Company's Board of Directors declared a cash dividend of $0.09 per share, payable on November 19, 2024, to stockholders of record of the Company's common stock as of November 5, 2024.

STATEMENTS OF OPERATIONS HIGHLIGHTS

Net Interest Income

Net interest income for the third quarter of 2024 was $87.5 million, an increase of $929,000, or 1.1%, from the second quarter of 2024. The increase in net interest income was primarily due to increases in other interest and dividend income driven by increased interest income on funds held with the Federal Reserve Bank, and increases in interest and fees on loans and leases mainly due to day count. These were offset by increases in interest expense on deposits primarily due to increased average balances in time deposits and money market accounts from our deposit promotion campaigns.

Tax-equivalent net interest margin(1) for the third quarter of 2024 was 3.89%, a decrease of ten basis points compared to the second quarter of 2024. Net loan accretion income positively contributed 13 basis points to the net interest margin for the current quarter compared to 17 basis points for the prior quarter.

The average cost of total deposits was 2.76% for the third quarter of 2024, an increase of 13 basis points compared to the second quarter of 2024, as a result of higher rates paid on time deposits. Average non-interest-bearing demand deposits were 23.2% of average total deposits for the current quarter compared to 25.0% during the prior quarter.

Provision for Credit Losses

The provision for credit losses was $7.5 million for the third quarter of 2024, an increase of $1.4 million compared to $6.0 million for the second quarter of 2024, mainly attributed to increases related to individually assessed loans in the government guaranteed loan portfolio. The provision for credit losses for the quarter is comprised of a provision for loan and lease losses of $7.6 million compared to $6.9 million in the second quarter of 2024, and a recapture of the provision for unfunded commitments of $122,000 compared to $833,000 in the second quarter of 2024.

Non-interest Income

Non-interest income for the third quarter of 2024 was $14.4 million, an increase of $1.5 million, or 12.0%, compared to $12.8 million for the second quarter of 2024. The increase in total non-interest income was primarily due to the change in the fair value of equity securities, net, and an increase in other non-interest income due to increased swap fee activity.

Net gains on sales of loans were $5.9 million for the current quarter, a decrease of $172,000, or 2.8% compared to the prior quarter. During the third quarter of 2024, we sold $79.5 million of U.S. government guaranteed loans compared to $73.9 million during the second quarter of 2024.

Non-interest Expense

Non-interest expense for the third quarter of 2024 was $54.3 million, an increase of $1.1 million, or 2.1%, compared to $53.2 million for the second quarter of 2024. The increase in non-interest expense was mainly due to increased salaries and employee benefits as a result of one additional payroll day, higher commissions, and lower deferred salaries related to loan and lease originations. Included in legal, audit and other professionals fees are $408,000 in merger-related expenses, and $3,000 merger-related expenses in data processing.

Our efficiency ratio was 52.02% for the third quarter of 2024 compared to 52.19% for the second quarter of 2024, a decrease of 17 basis points. Our adjusted efficiency ratio was 51.62%(1) for the third quarter of 2024 compared to 52.19%(1) for the second quarter of 2024, a decrease of 57 basis points.

Income Taxes

We recorded income tax expense of $9.7 million during the third quarter of 2024, compared to $10.4 million during the second quarter of 2024. The effective tax rates were 24.3% and 26.0% for the third quarter of 2024 and second quarter of 2024, respectively. The decrease in the effective tax rate was due to higher income tax benefits related to share-based compensation recorded in the third quarter.

(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 September 30, 2024, a decrease of $209.5 million, or 2.2%, compared to $9.6 billion at June 30, 2024. The decrease was mainly due to a decrease in cash and cash equivalents of $277.9 million, primarily due to the repayment during the quarter of the Bank Term Funding Program advance of $200.0 million, offset by an increase to securities available-for-sale, mainly from purchases of commercial and residential mortgage-backed securities.

Asset and Credit Quality

The ACL was $98.9 million as of September 30, 2024, a decrease of $870,000, or 0.9%, from $99.7 million at June 30, 2024. Net charge-offs of loans and leases during the third quarter of 2024 were $8.5 million, or 0.49% of average loans and leases, on an annualized basis. This was a decrease of $1.0 million compared to net charge-offs of $9.5 million, or 0.56% of average loans and leases, during the second quarter of 2024. The decrease is primarily due to lower charge-offs in the conventional portfolio.

Non-performing assets were $71.0 million, or 0.75% of total assets, as of September 30, 2024, an increase of $6.5 million from $64.6 million, or 0.67% of total assets, at June 30, 2024. The increase was primarily in non-accrual government guaranteed loans. The government guaranteed portion of non-performing loans included in non-performing assets was $11.3 million at September 30, 2024 compared to $6.6 million at June 30, 2024, an increase of $4.7 million.

Deposits and Other Liabilities

Total deposits increased $150.7 million to $7.5 billion at September 30, 2024 compared to $7.3 billion at June 30, 2024. The increase in deposits in the current quarter was mainly due to increases in commercial money market accounts and consumer time deposits.

Total borrowings and other liabilities were $830.1 million at September 30, 2024, a decrease of $423.5 million from $1.3 billion at June 30, 2024, primarily driven by a $200.0 million decrease in Federal Home Loan Bank advances and the repayment of the $200.0 million advance under the Bank Term Funding Program.

Stockholders’ Equity

Total stockholders’ equity was $1.1 billion at September 30, 2024, an increase of $63.3 million, or 6.1%, from June 30, 2024, primarily due to a decrease in unrealized losses on securities available-for-sale and an increase in 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, October 25, 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 097541. A recorded replay can be accessed through November 8, 2024, by dialing (866) 813-9403; passcode: 402924.

A slide presentation relating to our third 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 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)

 

 

 

September 30,

 

 

June 30,

 

 

September 30,

 

(dollars in thousands)

 

2024

 

 

2024

 

 

2023

 

ASSETS

 

 

 

 

 

 

 

 

 

Cash and due from banks

 

$

77,047

 

 

$

68,251

 

 

$

71,248

 

Interest bearing deposits with other banks

 

 

375,549

 

 

 

662,206

 

 

 

357,640

 

Cash and cash equivalents

 

 

452,596

 

 

 

730,457

 

 

 

428,888

 

Equity and other securities, at fair value

 

 

9,132

 

 

 

8,745

 

 

 

7,902

 

Securities available-for-sale, at fair value

 

 

1,502,108

 

 

 

1,386,827

 

 

 

1,239,929

 

Securities held-to-maturity, at amortized cost

 

 

605

 

 

 

606

 

 

 

1,157

 

Restricted stock, at cost

 

 

22,743

 

 

 

31,775

 

 

 

30,505

 

Loans held for sale

 

 

19,955

 

 

 

13,360

 

 

 

7,299

 

Loans and leases:

 

 

 

 

 

 

 

 

 

Loans and leases

 

 

6,879,446

 

 

 

6,891,204

 

 

 

6,613,303

 

Allowance for credit losses - loans and leases

 

 

(98,860

)

 

 

(99,730

)

 

 

(105,696

)

Net loans and leases

 

 

6,780,586

 

 

 

6,791,474

 

 

 

6,507,607

 

Servicing assets, at fair value

 

 

18,945

 

 

 

19,617

 

 

 

19,743

 

Premises and equipment, net

 

 

63,135

 

 

 

63,919

 

 

 

67,121

 

Goodwill and other intangible assets, net

 

 

199,443

 

 

 

200,788

 

 

 

205,028

 

Bank-owned life insurance

 

 

99,295

 

 

 

98,519

 

 

 

96,268

 

Deferred tax assets, net

 

 

37,737

 

 

 

48,888

 

 

 

89,841

 

Accrued interest receivable and other assets

 

 

218,036

 

 

 

238,840

 

 

 

242,080

 

Total assets

 

$

9,424,316

 

 

$

9,633,815

 

 

$

8,943,368

 

LIABILITIES AND STOCKHOLDERS’ EQUITY

 

 

 

 

 

 

 

 

 

LIABILITIES

 

 

 

 

 

 

 

 

 

Non-interest-bearing demand deposits

 

$

1,729,908

 

 

$

1,762,891

 

 

$

1,959,855

 

Interest-bearing deposits

 

 

5,767,979

 

 

 

5,584,290

 

 

 

4,993,835

 

Total deposits

 

 

7,497,887

 

 

 

7,347,181

 

 

 

6,953,690

 

Other borrowings

 

 

518,786

 

 

 

918,738

 

 

 

713,233

 

Subordinated notes, net

 

 

73,997

 

 

 

73,953

 

 

 

73,822

 

Junior subordinated debentures issued to capital trusts, net

 

 

70,783

 

 

 

70,675

 

 

 

70,336

 

Accrued interest payable and other liabilities

 

 

166,551

 

 

 

190,254

 

 

 

212,342

 

Total liabilities

 

 

8,328,004

 

 

 

8,600,801

 

 

 

8,023,423

 

STOCKHOLDERS’ EQUITY

 

 

 

 

 

 

 

 

 

Common stock

 

 

454

 

 

 

452

 

 

 

450

 

Additional paid-in capital

 

 

714,864

 

 

 

710,792

 

 

 

708,615

 

Retained earnings

 

 

507,576

 

 

 

481,232

 

 

 

403,368

 

Treasury stock

 

 

(47,904

)

 

 

(47,993

)

 

 

(50,329

)

Accumulated other comprehensive loss, net of tax

 

 

(78,678

)

 

 

(111,469

)

 

 

(142,159

)

Total stockholders’ equity

 

 

1,096,312

 

 

 

1,033,014

 

 

 

919,945

 

Total liabilities and stockholders’ equity

 

$

9,424,316

 

 

$

9,633,815

 

 

$

8,943,368

 

BYLINE BANCORP, INC. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF OPERATIONS (unaudited)

 

 

 

Three Months Ended

 

 

 

September 30,

 

 

June 30,

 

 

September 30,

 

(dollars in thousands, except per share data)

 

2024

 

 

2024

 

 

2023

 

INTEREST AND DIVIDEND INCOME

 

 

 

 

 

 

 

 

 

Interest and fees on loans and leases

 

$

128,336

 

 

$

126,523

 

 

$

125,465

 

Interest on securities

 

 

11,260

 

 

 

10,514

 

 

 

8,415

 

Other interest and dividend income

 

 

6,840

 

 

 

4,532

 

 

 

2,710

 

Total interest and dividend income

 

 

146,436

 

 

 

141,569

 

 

 

136,590

 

INTEREST EXPENSE

 

 

 

 

 

 

 

 

 

Deposits

 

 

52,076

 

 

 

47,603

 

 

 

37,163

 

Other borrowings

 

 

3,919

 

 

 

4,460

 

 

 

3,981

 

Subordinated notes and debentures

 

 

2,986

 

 

 

2,980

 

 

 

2,994

 

Total interest expense

 

 

58,981

 

 

 

55,043

 

 

 

44,138

 

Net interest income

 

 

87,455

 

 

 

86,526

 

 

 

92,452

 

PROVISION FOR CREDIT LOSSES

 

 

7,475

 

 

 

6,045

 

 

 

8,803

 

Net interest income after provision for credit losses

 

 

79,980

 

 

 

80,481

 

 

 

83,649

 

NON-INTEREST INCOME

 

 

 

 

 

 

 

 

 

Fees and service charges on deposits

 

 

2,591

 

 

 

2,548

 

 

 

2,372

 

Loan servicing revenue

 

 

3,174

 

 

 

3,216

 

 

 

3,369

 

Loan servicing asset revaluation

 

 

(2,183

)

 

 

(2,468

)

 

 

(3,646

)

ATM and interchange fees

 

 

1,143

 

 

 

1,163

 

 

 

1,205

 

Change in fair value of equity securities, net

 

 

388

 

 

 

(390

)

 

 

(313

)

Net gains on sales of loans

 

 

5,864

 

 

 

6,036

 

 

 

6,473

 

Wealth management and trust income

 

 

1,101

 

 

 

942

 

 

 

939

 

Other non-interest income

 

 

2,307

 

 

 

1,797

 

 

 

1,977

 

Total non-interest income

 

 

14,385

 

 

 

12,844

 

 

 

12,376

 

NON-INTEREST EXPENSE

 

 

 

 

 

 

 

 

 

Salaries and employee benefits

 

 

34,974

 

 

 

33,911

 

 

 

34,969

 

Occupancy and equipment expense, net

 

 

4,373

 

 

 

4,639

 

 

 

5,314

 

Loan and lease related expenses

 

 

703

 

 

 

741

 

 

 

836

 

Legal, audit, and other professional fees

 

 

3,643

 

 

 

3,708

 

 

 

3,805

 

Data processing

 

 

4,215

 

 

 

4,036

 

 

 

6,472

 

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

 

 

74

 

 

 

(62

)

 

 

111

 

Other intangible assets amortization expense

 

 

1,345

 

 

 

1,345

 

 

 

1,551

 

Other non-interest expense

 

 

5,000

 

 

 

4,892

 

 

 

4,833

 

Total non-interest expense

 

 

54,327

 

 

 

53,210

 

 

 

57,891

 

INCOME BEFORE PROVISION FOR INCOME TAXES

 

 

40,038

 

 

 

40,115

 

 

 

38,134

 

PROVISION FOR INCOME TAXES

 

 

9,710

 

 

 

10,444

 

 

 

9,912

 

NET INCOME

 

$

30,328

 

 

$

29,671

 

 

$

28,222

 

EARNINGS PER COMMON SHARE

 

 

 

 

 

 

 

 

 

Basic

 

$

0.70

 

 

$

0.68

 

 

$

0.66

 

Diluted

 

$

0.69

 

 

$

0.68

 

 

$

0.65

 

BYLINE BANCORP, INC. AND SUBSIDIARIES

SELECTED FINANCIAL DATA (unaudited)

 

 

As of or For the Three Months Ended

 

(dollars in thousands, except share

September 30,

 

 

June 30,

 

 

September 30,

 

and per share data)

2024

 

 

2024

 

 

2023

 

Earnings per Common Share

 

 

 

 

 

 

 

 

Basic earnings per common share

$

0.70

 

 

$

0.68

 

 

$

0.66

 

Diluted earnings per common share

$

0.69

 

 

$

0.68

 

 

$

0.65

 

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

$

0.70

 

 

$

0.68

 

 

$

0.77

 

Weighted average common shares outstanding (basic)

 

43,516,006

 

 

 

43,361,516

 

 

 

43,025,927

 

Weighted average common shares outstanding (diluted)

 

43,966,189

 

 

 

43,741,840

 

 

 

43,458,110

 

Common shares outstanding

 

44,384,706

 

 

 

44,180,829

 

 

 

43,719,203

 

Cash dividends per common share

$

0.09

 

 

$

0.09

 

 

$

0.09

 

Dividend payout ratio on common stock

 

13.04

%

 

 

13.24

%

 

 

13.85

%

Book value per common share

$

24.70

 

 

$

23.38

 

 

$

21.04

 

Tangible book value per common share(1)

$

20.21

 

 

$

18.84

 

 

$

16.35

 

Key Ratios and Performance Metrics (annualized where applicable)

 

 

 

 

 

 

 

 

Net interest margin

 

3.88

%

 

 

3.98

%

 

 

4.46

%

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

 

3.89

%

 

 

3.99

%

 

 

4.47

%

Average cost of deposits

 

2.76

%

 

 

2.63

%

 

 

2.13

%

Efficiency ratio(1)(2)

 

52.02

%

 

 

52.19

%

 

 

53.75

%

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

 

51.62

%

 

 

52.19

%

 

 

47.35

%

Non-interest income to total revenues(1)

 

14.13

%

 

 

12.93

%

 

 

11.81

%

Non-interest expense to average assets

 

2.31

%

 

 

2.34

%

 

 

2.66

%

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

 

2.29

%

 

 

2.34

%

 

 

2.35

%

Return on average stockholders' equity

 

11.39

%

 

 

11.83

%

 

 

12.11

%

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

 

11.53

%

 

 

11.83

%

 

 

14.30

%

Return on average assets

 

1.29

%

 

 

1.31

%

 

 

1.30

%

Adjusted return on average assets(1)(3)

 

1.30

%

 

 

1.31

%

 

 

1.53

%

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

 

2.02

%

 

 

2.03

%

 

 

2.16

%

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

 

2.03

%

 

 

2.03

%

 

 

2.46

%

Return on average tangible common stockholders' equity(1)

 

14.49

%

 

 

15.27

%

 

 

16.15

%

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

 

14.67

%

 

 

15.27

%

 

 

18.95

%

Non-interest-bearing deposits to total deposits

 

23.07

%

 

 

23.99

%

 

 

28.18

%

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

 

92.02

%

 

 

93.98

%

 

 

95.21

%

Deposits to total liabilities

 

90.03

%

 

 

85.42

%

 

 

86.67

%

Deposits per branch

$

162,998

 

 

$

159,721

 

 

$

144,869

 

Asset Quality Ratios

 

 

 

 

 

 

 

 

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

 

1.02

%

 

 

0.93

%

 

 

0.79

%

Total non-performing assets as a percentage of total assets

 

0.75

%

 

 

0.67

%

 

 

0.60

%

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

 

1.44

%

 

 

1.45

%

 

 

1.60

%

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

 

0.49

%

 

 

0.56

%

 

 

0.33

%

Capital Ratios

 

 

 

 

 

 

 

 

Common equity to total assets

 

11.63

%

 

 

10.72

%

 

 

10.29

%

Tangible common equity to tangible assets(1)

 

9.72

%

 

 

8.82

%

 

 

8.18

%

Leverage ratio

 

11.18

%

 

 

11.08

%

 

 

10.75

%

Common equity tier 1 capital ratio

 

11.35

%

 

 

10.84

%

 

 

10.08

%

Tier 1 capital ratio

 

12.39

%

 

 

11.86

%

 

 

11.12

%

Total capital ratio

 

14.41

%

 

 

13.86

%

 

 

13.17

%

(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

 

 

September 30, 2024

 

 

June 30, 2024

 

 

September 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

$

468,852

 

 

$

5,771

 

 

 

4.90

%

 

$

305,873

 

 

$

3,315

 

 

 

4.36

%

 

$

195,019

 

 

$

1,724

 

 

 

3.51

%

Loans and leases(1)

 

6,827,726

 

 

 

128,336

 

 

 

7.48

%

 

 

6,807,934

 

 

 

126,523

 

 

 

7.47

%

 

 

6,484,875

 

 

 

125,465

 

 

 

7.68

%

Taxable securities

 

1,508,987

 

 

 

11,467

 

 

 

3.02

%

 

 

1,473,000

 

 

 

10,869

 

 

 

2.97

%

 

 

1,371,979

 

 

 

8,465

 

 

 

2.45

%

Tax-exempt securities(2)

 

156,085

 

 

 

1,091

 

 

 

2.78

%

 

 

156,655

 

 

 

1,091

 

 

 

2.80

%

 

 

168,805

 

 

 

1,184

 

 

 

2.78

%

Total interest-earning assets

$

8,961,650

 

 

$

146,665

 

 

 

6.51

%

 

$

8,743,462

 

 

$

141,798

 

 

 

6.52

%

 

$

8,220,678

 

 

$

136,838

 

 

 

6.60

%

Allowance for credit losses - loans and leases

 

(101,001

)

 

 

 

 

 

 

 

 

(103,266

)

 

 

 

 

 

 

 

 

(108,315

)

 

 

 

 

 

 

All other assets

 

513,200

 

 

 

 

 

 

 

 

 

500,540

 

 

 

 

 

 

 

 

 

521,982

 

 

 

 

 

 

 

TOTAL ASSETS

$

9,373,849

 

 

 

 

 

 

 

 

$

9,140,736

 

 

 

 

 

 

 

 

$

8,634,345

 

 

 

 

 

 

 

LIABILITIES AND STOCKHOLDERS’ EQUITY

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Deposits

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest checking

$

754,586

 

 

$

4,439

 

 

 

2.34

%

 

$

717,513

 

 

$

4,096

 

 

 

2.30

%

 

$

579,917

 

 

$

2,208

 

 

 

1.51

%

Money market accounts

 

2,386,909

 

 

 

21,371

 

 

 

3.56

%

 

 

2,270,231

 

 

 

19,978

 

 

 

3.54

%

 

 

2,040,476

 

 

 

16,676

 

 

 

3.24

%

Savings

 

495,541

 

 

 

190

 

 

 

0.15

%

 

 

514,192

 

 

 

194

 

 

 

0.15

%

 

 

594,555

 

 

 

228

 

 

 

0.15

%

Time deposits

 

2,134,587

 

 

 

26,076

 

 

 

4.86

%

 

 

1,951,448

 

 

 

23,335

 

 

 

4.81

%

 

 

1,706,531

 

 

 

18,051

 

 

 

4.20

%

Total interest-bearing deposits

 

5,771,623

 

 

 

52,076

 

 

 

3.59

%

 

 

5,453,384

 

 

 

47,603

 

 

 

3.51

%

 

 

4,921,479

 

 

 

37,163

 

 

 

3.00

%

Other borrowings

 

474,498

 

 

 

3,919

 

 

 

3.29

%

 

 

521,545

 

 

 

4,439

 

 

 

3.42

%

 

 

463,561

 

 

 

3,981

 

 

 

3.41

%

Federal funds purchased

 

—

 

 

 

—

 

 

 

0.00

%

 

 

1,401

 

 

 

21

 

 

 

6.05

%

 

 

—

 

 

 

—

 

 

 

0.00

%

Subordinated notes and debentures

 

144,702

 

 

 

2,986

 

 

 

8.21

%

 

 

144,548

 

 

 

2,980

 

 

 

8.29

%

 

 

144,171

 

 

 

2,994

 

 

 

8.24

%

Total borrowings

 

619,200

 

 

 

6,905

 

 

 

4.44

%

 

 

667,494

 

 

 

7,440

 

 

 

4.48

%

 

 

607,732

 

 

 

6,975

 

 

 

4.55

%

Total interest-bearing liabilities

$

6,390,823

 

 

$

58,981

 

 

 

3.67

%

 

$

6,120,878

 

 

$

55,043

 

 

 

3.62

%

 

$

5,529,211

 

 

$

44,138

 

 

 

3.17

%

Non-interest-bearing demand deposits

 

1,741,250

 

 

 

 

 

 

 

 

 

1,817,133

 

 

 

 

 

 

 

 

 

1,987,996

 

 

 

 

 

 

 

Other liabilities

 

182,148

 

 

 

 

 

 

 

 

 

193,923

 

 

 

 

 

 

 

 

 

192,860

 

 

 

 

 

 

 

Total stockholders’ equity

 

1,059,628

 

 

 

 

 

 

 

 

 

1,008,802

 

 

 

 

 

 

 

 

 

924,278

 

 

 

 

 

 

 

TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY

$

9,373,849

 

 

 

 

 

 

 

 

$

9,140,736

 

 

 

 

 

 

 

 

$

8,634,345

 

 

 

 

 

 

 

Net interest spread(3)

 

 

 

 

 

 

 

2.84

%

 

 

 

 

 

 

 

 

2.90

%

 

 

 

 

 

 

 

 

3.43

%

Net interest income, fully taxable equivalent

 

 

 

$

87,684

 

 

 

 

 

 

 

 

$

86,755

 

 

 

 

 

 

 

 

$

92,700

 

 

 

 

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

 

 

 

 

 

 

 

3.89

%

 

 

 

 

 

 

 

 

3.99

%

 

 

 

 

 

 

 

 

4.47

%

Less: Tax-equivalent adjustment

 

 

 

 

229

 

 

 

0.01

%

 

 

 

 

 

229

 

 

 

0.01

%

 

 

 

 

 

248

 

 

 

0.01

%

Net interest income

 

 

 

$

87,455

 

 

 

 

 

 

 

 

$

86,526

 

 

 

 

 

 

 

 

$

92,452

 

 

 

 

Net interest margin(4)

 

 

 

 

 

 

 

3.88

%

 

 

 

 

 

 

 

 

3.98

%

 

 

 

 

 

 

 

 

4.46

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net loan accretion impact on margin

 

 

 

$

2,982

 

 

 

0.13

%

 

 

 

 

$

3,656

 

 

 

0.17

%

 

 

 

 

$

10,276

 

 

 

0.50

%

(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:

 

 

 

September 30, 2024

 

 

June 30, 2024

 

 

September 30, 2023

 

(dollars in thousands)

 

Amount

 

 

% of Total

 

 

Amount

 

 

% of Total

 

 

Amount

 

 

% of Total

 

Originated loans and leases:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Commercial real estate

 

$

2,040,072

 

 

 

29.7

%

 

$

1,924,797

 

 

 

27.9

%

 

$

1,837,531

 

 

 

27.8

%

Residential real estate

 

 

497,034

 

 

 

7.2

%

 

 

498,578

 

 

 

7.2

%

 

 

454,456

 

 

 

6.9

%

Construction, land development, and other land

 

 

415,636

 

 

 

6.0

%

 

 

445,919

 

 

 

6.5

%

 

 

406,334

 

 

 

6.1

%

Commercial and industrial

 

 

2,476,177

 

 

 

36.0

%

 

 

2,493,229

 

 

 

36.2

%

 

 

2,286,058

 

 

 

34.6

%

Installment and other

 

 

3,839

 

 

 

0.1

%

 

 

2,576

 

 

 

0.0

%

 

 

2,968

 

 

 

0.0

%

Leasing financing receivables

 

 

711,233

 

 

 

10.3

%

 

 

710,784

 

 

 

10.3

%

 

 

641,032

 

 

 

9.7

%

Total originated loans and leases

 

$

6,143,991

 

 

 

89.3

%

 

$

6,075,883

 

 

 

88.1

%

 

$

5,628,379

 

 

 

85.1

%

Purchased credit deteriorated loans:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Commercial real estate

 

$

95,240

 

 

 

1.4

%

 

$

114,053

 

 

 

1.7

%

 

$

154,573

 

 

 

2.3

%

Residential real estate

 

 

31,362

 

 

 

0.5

%

 

 

40,728

 

 

 

0.6

%

 

 

47,485

 

 

 

0.7

%

Construction, land development, and other land

 

 

4

 

 

 

0.0

%

 

 

9

 

 

 

0.0

%

 

 

29,587

 

 

 

0.5

%

Commercial and industrial

 

 

14,526

 

 

 

0.2

%

 

 

17,796

 

 

 

0.3

%

 

 

21,014

 

 

 

0.3

%

Installment and other

 

 

110

 

 

 

0.0

%

 

 

116

 

 

 

0.0

%

 

 

125

 

 

 

0.0

%

Total purchased credit deteriorated loans

 

$

141,242

 

 

 

2.1

%

 

$

172,702

 

 

 

2.6

%

 

$

252,784

 

 

 

3.8

%

Acquired non-credit-deteriorated loans and leases:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Commercial real estate

 

$

227,035

 

 

 

3.3

%

 

$

254,858

 

 

 

3.7

%

 

$

296,656

 

 

 

4.5

%

Residential real estate

 

 

181,976

 

 

 

2.6

%

 

 

188,489

 

 

 

2.7

%

 

 

220,091

 

 

 

3.4

%

Construction, land development, and other land

 

 

84,172

 

 

 

1.2

%

 

 

84,849

 

 

 

1.2

%

 

 

87,087

 

 

 

1.3

%

Commercial and industrial

 

 

100,852

 

 

 

1.5

%

 

 

113,997

 

 

 

1.7

%

 

 

127,253

 

 

 

1.9

%

Installment and other

 

 

32

 

 

 

0.0

%

 

 

153

 

 

 

0.0

%

 

 

153

 

 

 

0.0

%

Leasing financing receivables

 

 

146

 

 

 

0.0

%

 

 

273

 

 

 

0.0

%

 

 

900

 

 

 

0.0

%

Total acquired non-credit-deteriorated loans and leases

 

$

594,213

 

 

 

8.6

%

 

$

642,619

 

 

 

9.3

%

 

$

732,140

 

 

 

11.1

%

Total loans and leases

 

$

6,879,446

 

 

 

100.0

%

 

$

6,891,204

 

 

 

100.0

%

 

$

6,613,303

 

 

 

100.0

%

Allowance for credit losses - loans and leases

 

 

(98,860

)

 

 

 

 

 

(99,730

)

 

 

 

 

 

(105,696

)

 

 

 

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

 

$

6,780,586

 

 

 

 

 

$

6,791,474

 

 

 

 

 

$

6,507,607

 

 

 

 

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

 

 

 

Three Months Ended

 

 

 

September 30,

 

 

June 30,

 

 

September 30,

 

(dollars in thousands)

 

2024

 

 

2024

 

 

2023

 

ACL - loans and leases, beginning of period

 

$

99,730

 

 

$

102,366

 

 

$

92,665

 

Adjustment for acquired PCD loans

 

 

—

 

 

 

—

 

 

 

10,596

 

Provision for credit losses - loans and leases

 

 

7,597

 

 

 

6,878

 

 

 

7,865

 

Net charge-offs - loans and leases

 

 

(8,467

)

 

 

(9,514

)

 

 

(5,430

)

ACL - loans and leases, end of period

 

$

98,860

 

 

$

99,730

 

 

$

105,696

 

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

 

 

0.49

%

 

 

0.56

%

 

 

0.33

%

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

 

 

0.90

x

 

 

0.72

x

 

 

1.45

x

BYLINE BANCORP, INC. AND SUBSIDIARIES

SELECTED BALANCE SHEET TABLES AND FINANCIAL RATIOS (unaudited)

 

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

 

 

 

 

 

 

 

 

 

 

 

 

September 30, 2024

 

 

 

 

 

 

 

 

 

 

 

 

Change from

 

(dollars in thousands)

 

September 30, 2024

 

 

June 30, 2024

 

 

September 30, 2023

 

 

June 30, 2024

 

 

September 30, 2023

 

Non-performing assets:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Non-accrual loans and leases

 

$

70,507

 

 

$

63,808

 

 

$

52,070

 

 

 

10.5

%

 

 

35.4

%

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

 

 

—

 

 

 

—

 

 

 

—

 

 

—%

 

 

—%

 

Total non-performing loans and leases

 

$

70,507

 

 

$

63,808

 

 

$

52,070

 

 

 

10.5

%

 

 

35.4

%

Other real estate owned

 

 

532

 

 

 

780

 

 

 

1,671

 

 

 

(31.8

)%

 

 

(68.1

)%

Total non-performing assets

 

$

71,039

 

 

$

64,588

 

 

$

53,741

 

 

 

10.0

%

 

 

32.2

%

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

 

 

1.02

%

 

 

0.93

%

 

 

0.79

%

 

 

 

 

 

 

Total non-performing assets as a percentage of total assets

 

 

0.75

%

 

 

0.67

%

 

 

0.60

%

 

 

 

 

 

 

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

 

 

140.21

%

 

 

156.30

%

 

 

202.99

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Non-accrual loans guaranteed

 

$

11,332

 

 

$

6,616

 

 

$

3,588

 

 

 

71.3

%

 

 

215.9

%

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

 

 

—

 

 

 

—

 

 

 

—

 

 

—%

 

 

—%

 

Total non-performing loans guaranteed

 

$

11,332

 

 

$

6,616

 

 

$

3,588

 

 

 

71.3

%

 

 

215.9

%

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

 

 

0.86

%

 

 

0.83

%

 

 

0.73

%

 

 

 

 

 

 

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

 

 

0.63

%

 

 

0.60

%

 

 

0.56

%

 

 

 

 

 

 

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

 

 

 

 

 

 

 

 

 

 

 

September 30, 2024

 

 

 

 

 

 

 

 

 

 

 

 

Change from

 

(dollars in thousands)

 

September 30, 2024

 

 

June 30, 2024

 

 

September 30, 2023

 

 

June 30, 2024

 

 

September 30, 2023

 

Non-interest-bearing demand deposits

 

$

1,729,908

 

 

$

1,762,891

 

 

$

1,959,855

 

 

 

(1.9

)%

 

 

(11.7

)%

Interest-bearing checking accounts

 

 

749,721

 

 

 

717,229

 

 

 

592,771

 

 

 

4.5

%

 

 

26.5

%

Money market demand accounts

 

 

2,426,522

 

 

 

2,323,245

 

 

 

2,062,252

 

 

 

4.4

%

 

 

17.7

%

Other savings

 

 

489,618

 

 

 

503,935

 

 

 

581,073

 

 

 

(2.8

)%

 

 

(15.7

)%

Time deposits (below $250,000)

 

 

1,639,658

 

 

 

1,610,308

 

 

 

1,447,053

 

 

 

1.8

%

 

 

13.3

%

Time deposits ($250,000 and above)

 

 

462,460

 

 

 

429,573

 

 

 

310,686

 

 

 

7.7

%

 

 

48.9

%

Total deposits

 

$

7,497,887

 

 

$

7,347,181

 

 

$

6,953,690

 

 

 

2.1

%

 

 

7.8

%

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

 

 

 

September 30,

 

 

June 30,

 

 

September 30,

 

(dollars in thousands, except per share data)

 

2024

 

 

2024

 

 

2023

 

Net income and earnings per share excluding significant items:

 

 

 

 

 

 

 

 

 

Reported Net Income

 

$

30,328

 

 

$

29,671

 

 

$

28,222

 

Significant items:

 

 

 

 

 

 

 

 

 

Impairment charges on ROU assets

 

 

—

 

 

 

—

 

 

 

394

 

Merger-related expenses

 

 

411

 

 

 

—

 

 

 

6,307

 

Tax benefit

 

 

(32

)

 

 

—

 

 

 

(1,617

)

Adjusted Net Income

 

$

30,707

 

 

$

29,671

 

 

$

33,306

 

Reported Diluted Earnings per Share

 

$

0.69

 

 

$

0.68

 

 

$

0.65

 

Significant items:

 

 

 

 

 

 

 

 

 

Impairment charges on ROU assets

 

 

—

 

 

 

—

 

 

 

0.01

 

Merger-related expenses

 

 

0.01

 

 

 

—

 

 

 

0.15

 

Tax benefit

 

 

—

 

 

 

—

 

 

 

(0.04

)

Adjusted Diluted Earnings per Share

 

$

0.70

 

 

$

0.68

 

 

$

0.77

 

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,

 

September 30,

 

 

June 30,

 

 

September 30,

 

ratios annualized, where applicable)

 

2024

 

 

2024

 

 

2023

 

Adjusted non-interest expense:

 

 

 

 

 

 

 

 

 

Non-interest expense

 

$

54,327

 

 

$

53,210

 

 

$

57,891

 

Less: Impairment charges on ROU assets

 

 

—

 

 

 

—

 

 

 

394

 

Less: Merger-related expenses

 

 

411

 

 

 

—

 

 

 

6,307

 

Adjusted non-interest expense

 

$

53,916

 

 

$

53,210

 

 

$

51,190

 

Adjusted non-interest expense excluding amortization of intangible assets:

 

 

 

 

 

 

 

 

 

Adjusted non-interest expense

 

$

53,916

 

 

$

53,210

 

 

$

51,190

 

Less: Amortization of intangible assets

 

 

1,345

 

 

 

1,345

 

 

 

1,551

 

Adjusted non-interest expense excluding amortization of intangible assets

 

$

52,571

 

 

$

51,865

 

 

$

49,639

 

Pre-tax pre-provision net income:

 

 

 

 

 

 

 

 

 

Pre-tax income

 

$

40,038

 

 

$

40,115

 

 

$

38,134

 

Add: Provision for credit losses

 

 

7,475

 

 

 

6,045

 

 

 

8,803

 

Pre-tax pre-provision net income

 

$

47,513

 

 

$

46,160

 

 

$

46,937

 

Adjusted pre-tax pre-provision net income:

 

 

 

 

 

 

 

 

 

Pre-tax pre-provision net income

 

$

47,513

 

 

$

46,160

 

 

$

46,937

 

Add: Impairment charges on ROU assets

 

 

—

 

 

 

—

 

 

 

394

 

Add: Merger-related expenses

 

 

411

 

 

 

—

 

 

 

6,307

 

Adjusted pre-tax pre-provision net income

 

$

47,924

 

 

$

46,160

 

 

$

53,638

 

Tax equivalent net interest income:

 

 

 

 

 

 

 

 

 

Net interest income

 

$

87,455

 

 

$

86,526

 

 

$

92,452

 

Add: Tax-equivalent adjustment

 

 

229

 

 

 

229

 

 

 

248

 

Net interest income, fully taxable equivalent

 

$

87,684

 

 

$

86,755

 

 

$

92,700

 

Total revenue:

 

 

 

 

 

 

 

 

 

Net interest income

 

$

87,455

 

 

$

86,526

 

 

$

92,452

 

Add: Non-interest income

 

 

14,385

 

 

 

12,844

 

 

 

12,376

 

Total revenue

 

$

101,840

 

 

$

99,370

 

 

$

104,828

 

Tangible common stockholders' equity:

 

 

 

 

 

 

 

 

 

Total stockholders' equity

 

$

1,096,312

 

 

$

1,033,014

 

 

$

919,945

 

Less: Goodwill and other intangibles

 

 

199,443

 

 

 

200,788

 

 

 

205,028

 

Tangible common stockholders' equity

 

$

896,869

 

 

$

832,226

 

 

$

714,917

 

Tangible assets:

 

 

 

 

 

 

 

 

 

Total assets

 

$

9,424,316

 

 

$

9,633,815

 

 

$

8,943,368

 

Less: Goodwill and other intangibles

 

 

199,443

 

 

 

200,788

 

 

 

205,028

 

Tangible assets

 

$

9,224,873

 

 

$

9,433,027

 

 

$

8,738,340

 

Average tangible common stockholders' equity:

 

 

 

 

 

 

 

 

 

Average total stockholders' equity

 

$

1,059,628

 

 

$

1,008,802

 

 

$

924,278

 

Less: Average goodwill and other intangibles

 

 

200,091

 

 

 

201,428

 

 

 

202,978

 

Average tangible common stockholders' equity

 

$

859,537

 

 

$

807,374

 

 

$

721,300

 

Average tangible assets:

 

 

 

 

 

 

 

 

 

Average total assets

 

$

9,373,849

 

 

$

9,140,736

 

 

$

8,634,345

 

Less: Average goodwill and other intangibles

 

 

200,091

 

 

 

201,428

 

 

 

202,978

 

Average tangible assets

 

$

9,173,758

 

 

$

8,939,308

 

 

$

8,431,367

 

Tangible net income available to common stockholders:

 

 

 

 

 

 

 

 

 

Net income available to common stockholders

 

$

30,328

 

 

$

29,671

 

 

$

28,222

 

Add: After-tax intangible asset amortization

 

 

986

 

 

 

987

 

 

 

1,137

 

Tangible net income available to common stockholders

 

$

31,314

 

 

$

30,658

 

 

$

29,359

 

Adjusted tangible net income available to common stockholders:

 

 

 

 

 

 

 

 

 

Tangible net income available to common stockholders

 

$

31,314

 

 

$

30,658

 

 

$

29,359

 

Add: Impairment charges on ROU assets

 

 

—

 

 

 

—

 

 

 

394

 

Add: Merger-related expenses

 

 

411

 

 

 

—

 

 

 

6,307

 

Add: Tax benefit on significant items

 

 

(32

)

 

 

—

 

 

 

(1,617

)

Adjusted tangible net income available to common stockholders

 

$

31,693

 

 

$

30,658

 

 

$

34,443

 

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

 

September 30,

 

 

June 30,

 

 

September 30,

 

data, ratios annualized, where applicable)

 

2024

 

 

2024

 

 

2023

 

Pre-tax pre-provision return on average assets:

 

 

 

 

 

 

 

 

 

Pre-tax pre-provision net income

 

$

47,513

 

 

$

46,160

 

 

$

46,937

 

Average total assets

 

 

9,373,849

 

 

 

9,140,736

 

 

 

8,634,345

 

Pre-tax pre-provision return on average assets

 

 

2.02

%

 

 

2.03

%

 

 

2.16

%

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

 

 

 

 

 

 

 

 

 

Adjusted pre-tax pre-provision net income

 

$

47,924

 

 

$

46,160

 

 

$

53,638

 

Average total assets

 

 

9,373,849

 

 

 

9,140,736

 

 

 

8,634,345

 

Adjusted pre-tax pre-provision return on average assets

 

 

2.03

%

 

 

2.03

%

 

 

2.46

%

Net interest margin, fully taxable equivalent:

 

 

 

 

 

 

 

 

 

Net interest income, fully taxable equivalent

 

$

87,684

 

 

$

86,755

 

 

$

92,700

 

Total average interest-earning assets

 

 

8,961,650

 

 

 

8,743,462

 

 

 

8,220,678

 

Net interest margin, fully taxable equivalent

 

 

3.89

%

 

 

3.99

%

 

 

4.47

%

Non-interest income to total revenues:

 

 

 

 

 

 

 

 

 

Non-interest income

 

$

14,385

 

 

$

12,844

 

 

$

12,376

 

Total revenues

 

 

101,840

 

 

 

99,370

 

 

 

104,828

 

Non-interest income to total revenues

 

 

14.13

%

 

 

12.93

%

 

 

11.81

%

Adjusted non-interest expense to average assets:

 

 

 

 

 

 

 

 

 

Adjusted non-interest expense

 

$

53,916

 

 

$

53,210

 

 

$

51,190

 

Average total assets

 

 

9,373,849

 

 

 

9,140,736

 

 

 

8,634,345

 

Adjusted non-interest expense to average assets

 

 

2.29

%

 

 

2.34

%

 

 

2.35

%

Adjusted efficiency ratio:

 

 

 

 

 

 

 

 

 

Adjusted non-interest expense excluding amortization of intangible assets

 

$

52,571

 

 

$

51,865

 

 

$

49,639

 

Total revenues

 

 

101,840

 

 

 

99,370

 

 

 

104,828

 

Adjusted efficiency ratio

 

 

51.62

%

 

 

52.19

%

 

 

47.35

%

Adjusted return on average assets:

 

 

 

 

 

 

 

 

 

Adjusted net income

 

$

30,707

 

 

$

29,671

 

 

$

33,306

 

Average total assets

 

 

9,373,849

 

 

 

9,140,736

 

 

 

8,634,345

 

Adjusted return on average assets

 

 

1.30

%

 

 

1.31

%

 

 

1.53

%

Adjusted return on average stockholders' equity:

 

 

 

 

 

 

 

 

 

Adjusted net income

 

$

30,707

 

 

$

29,671

 

 

$

33,306

 

Average stockholders' equity

 

 

1,059,628

 

 

 

1,008,802

 

 

 

924,278

 

Adjusted return on average stockholders' equity

 

 

11.53

%

 

 

11.83

%

 

 

14.30

%

Tangible common equity to tangible assets:

 

 

 

 

 

 

 

 

 

Tangible common equity

 

$

896,869

 

 

$

832,226

 

 

$

714,917

 

Tangible assets

 

 

9,224,873

 

 

 

9,433,027

 

 

 

8,738,340

 

Tangible common equity to tangible assets

 

 

9.72

%

 

 

8.82

%

 

 

8.18

%

Return on average tangible common stockholders' equity:

 

 

 

 

 

 

 

 

 

Tangible net income available to common stockholders

 

$

31,314

 

 

$

30,658

 

 

$

29,359

 

Average tangible common stockholders' equity

 

 

859,537

 

 

 

807,374

 

 

 

721,300

 

Return on average tangible common stockholders' equity

 

 

14.49

%

 

 

15.27

%

 

 

16.15

%

Adjusted return on average tangible common stockholders' equity:

 

 

 

 

 

 

 

 

 

Adjusted tangible net income available to common stockholders

 

$

31,693

 

 

$

30,658

 

 

$

34,443

 

Average tangible common stockholders' equity

 

 

859,537

 

 

 

807,374

 

 

 

721,300

 

Adjusted return on average tangible common stockholders' equity

 

 

14.67

%

 

 

15.27

%

 

 

18.95

%

Tangible book value per share:

 

 

 

 

 

 

 

 

 

Tangible common equity

 

$

896,869

 

 

$

832,226

 

 

$

714,917

 

Common shares outstanding

 

 

44,384,706

 

 

 

44,180,829

 

 

 

43,719,203

 

Tangible book value per share

 

$

20.21

 

 

$

18.84

 

 

$

16.35

 

 

View source version on businesswire.com: https://www.businesswire.com/news/home/20241024505892/en/

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