Select Third Quarter 2021 Highlights
- Net income of $25.3 million, or $0.66 per diluted share
- Net interest margin of 3.91%
- Return on average assets of 1.53%, as adjusted1 1.59%
- Efficiency ratio of 54.18%
- Non-interest bearing deposits 41.1% of total deposits
- Originated loans and leases increased $189.5 million, total production of $410.3 million
- Common Equity Tier 1 to risk weighted assets of 11.32%
Byline Bancorp, Inc. ("Byline", the “Company”, "we", "our", or "us")(NYSE: BY), the parent company of Byline Bank (the “Bank”), today reported net income of $25.3 million, or $0.66 per diluted share, for the third quarter of 2021, compared with net income of $28.5 million, or $0.73 per diluted share, for the second quarter of 2021 and net income of $13.1 million, or $0.34 per diluted share for the third quarter 2020. Adjusted net income1 was $26.4 million, or $0.69 per adjusted diluted share, for the third quarter of 2021, compared with $29.9 million, or $0.77 per adjusted diluted share1, for the second quarter of 2021 and $13.1 million, or $0.34 per adjusted diluted share for the third quarter of 2020.
Roberto R. Herencia, Executive Chairman and Chief Executive Officer of Byline Bancorp, commented, “We reported strong third quarter results highlighted by robust balance sheet growth as our teams remained focused on taking care of our customers, while the economy continued to improve. We executed well on our commercial banking strategy during the quarter driven by solid loan and lease growth, net interest margin expansion while continuing to deploy excess capital through share repurchases and dividends. We remain optimistic about our opportunities to execute on our strategy in the future to further enhance the value of our franchise. I want to thank all of our employees for their continued hard work and dedication to serving all of our stakeholders.”
Alberto J. Paracchini, President of Byline Bancorp, added, “Our strong results were supported by continued momentum across our businesses resulting in loan and lease growth, strong inflows of commercial noninterest-bearing deposits, and higher net interest income. Excluding PPP loans, our total loans and leases grew at a 34.9% annualized rate during the third quarter and more than offset the decline in our PPP portfolio. Growth was particularly strong in the commercial, sponsor finance, leasing and government guaranteed loan portfolios. Thanks to the efforts of all of our bankers and team members, we continue to have a healthy loan pipeline, which we believe will result in continued growth of our business while benefiting the mix of earning assets.”
Board Declares Cash Dividend of $0.09 per Share
On October 26, 2021, the Company's Board of Directors declared a cash dividend of $0.09 per share, payable on November 23, 2021, to stockholders of record of the Company's common stock as of November 9, 2021.
(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 OPERATIONS
Net Interest Income
The following table presents net interest income for the periods indicated:
|
|
|
|
|
|
|
|
|
|
|
September 30, 2021 |
|||||||||
|
|
Three Months Ended |
|
Change from |
||||||||||||||||
|
|
September 30, |
|
June 30, |
|
September 30, |
|
June 30, |
|
September 30, |
||||||||||
(dollars in thousands) |
|
2021 |
|
2021 |
|
2020 |
|
2021 |
|
2020 |
||||||||||
INTEREST AND DIVIDEND INCOME |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Interest and fees on loans and leases |
|
$ |
56,291 |
|
|
$ |
54,324 |
|
|
$ |
51,036 |
|
|
|
3.6 |
% |
|
|
10.3 |
% |
Interest on securities |
|
|
5,534 |
|
|
|
6,359 |
|
|
|
7,070 |
|
|
|
(13.0 |
)% |
|
|
(21.7 |
)% |
Other interest and dividend income |
|
|
947 |
|
|
|
628 |
|
|
|
128 |
|
|
|
50.6 |
% |
|
|
644.4 |
% |
Total interest and dividend income |
|
|
62,772 |
|
|
|
61,311 |
|
|
|
58,234 |
|
|
|
2.4 |
% |
|
|
7.8 |
% |
INTEREST EXPENSE |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Deposits |
|
|
986 |
|
|
|
1,058 |
|
|
|
2,760 |
|
|
|
(6.8 |
)% |
|
|
(64.3 |
)% |
Other borrowings |
|
|
349 |
|
|
|
482 |
|
|
|
465 |
|
|
|
(27.4 |
)% |
|
|
(24.8 |
)% |
Subordinated notes and debentures |
|
|
1,592 |
|
|
|
1,597 |
|
|
|
1,485 |
|
|
|
(0.4 |
)% |
|
|
7.2 |
% |
Total interest expense |
|
|
2,927 |
|
|
|
3,137 |
|
|
|
4,710 |
|
|
|
(6.7 |
)% |
|
|
(37.8 |
)% |
Net interest income |
|
$ |
59,845 |
$ |
58,174 |
$ |
53,524 |
|
|
2.9 |
% |
11.8 |
% |
|||||||
The following table presents the average interest-earning assets and average interest-bearing liabilities for the periods indicated. Net interest income and margin are adjusted to reflect tax-exempt interest income on a tax-equivalent basis using tax rates effective as of the end of the period:
|
|
For the Three Months Ended |
|
|||||||||||||||||||||
|
|
September 30, 2021 |
|
June 30, 2021 |
||||||||||||||||||||
(dollars in thousands) |
|
Average
|
|
Interest
|
|
Average
|
|
Average
|
|
Interest
|
|
Average
|
||||||||||||
ASSETS |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Cash and cash equivalents |
|
$ |
40,088 |
|
|
$ |
19 |
|
|
|
0.19 |
% |
|
$ |
75,382 |
|
|
$ |
28 |
|
|
|
0.15 |
% |
Loans and leases(1) |
|
|
4,539,111 |
|
|
|
56,291 |
|
|
|
4.92 |
% |
|
|
4,491,197 |
|
|
|
54,324 |
|
|
|
4.85 |
% |
Taxable securities |
|
|
1,309,802 |
|
|
|
5,472 |
|
|
|
1.66 |
% |
|
|
1,477,070 |
|
|
|
5,947 |
|
|
|
1.62 |
% |
Tax-exempt securities(2) |
|
|
187,064 |
|
|
|
1,254 |
|
|
|
2.66 |
% |
|
|
187,967 |
|
|
|
1,281 |
|
|
|
2.73 |
% |
Total interest-earning assets |
|
$ |
6,076,065 |
|
|
$ |
63,036 |
|
|
|
4.12 |
% |
|
$ |
6,231,616 |
|
|
$ |
61,580 |
|
|
|
3.96 |
% |
Allowance for loan and lease losses |
|
|
(61,528 |
) |
|
|
|
|
|
|
|
|
(65,848 |
) |
|
|
|
|
|
|
||||
All other assets |
|
|
546,331 |
|
|
|
|
|
|
|
|
|
554,724 |
|
|
|
|
|
|
|
||||
TOTAL ASSETS |
|
$ |
6,560,868 |
|
|
|
|
|
|
|
|
$ |
6,720,492 |
|
|
|
|
|
|
|
||||
LIABILITIES AND STOCKHOLDERS’
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Deposits |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Interest checking |
|
$ |
653,543 |
|
|
$ |
228 |
|
|
|
0.14 |
% |
|
$ |
626,886 |
|
|
$ |
220 |
|
|
|
0.14 |
% |
Money market accounts |
|
|
1,031,009 |
|
|
|
280 |
|
|
|
0.11 |
% |
|
|
1,052,223 |
|
|
|
279 |
|
|
|
0.11 |
% |
Savings |
|
|
625,037 |
|
|
|
75 |
|
|
|
0.05 |
% |
|
|
607,035 |
|
|
|
72 |
|
|
|
0.05 |
% |
Time deposits |
|
|
709,805 |
|
|
|
403 |
|
|
|
0.23 |
% |
|
|
717,795 |
|
|
|
487 |
|
|
|
0.27 |
% |
Total interest-bearing deposits |
|
|
3,019,394 |
|
|
|
986 |
|
|
|
0.13 |
% |
|
|
3,003,939 |
|
|
|
1,058 |
|
|
|
0.14 |
% |
Other borrowings |
|
|
426,284 |
|
|
|
349 |
|
|
|
0.33 |
% |
|
|
642,586 |
|
|
|
482 |
|
|
|
0.30 |
% |
Subordinated notes and debentures |
|
|
110,195 |
|
|
|
1,592 |
|
|
|
5.73 |
% |
|
|
110,030 |
|
|
|
1,597 |
|
|
|
5.82 |
% |
Total borrowings |
|
|
536,479 |
|
|
|
1,941 |
|
|
|
1.44 |
% |
|
|
752,616 |
|
|
|
2,079 |
|
|
|
1.11 |
% |
Total interest-bearing liabilities |
|
$ |
3,555,873 |
|
|
$ |
2,927 |
|
|
|
0.33 |
% |
|
$ |
3,756,555 |
|
|
$ |
3,137 |
|
|
|
0.33 |
% |
Non-interest-bearing demand deposits |
|
|
2,106,189 |
|
|
|
|
|
|
|
|
|
2,085,358 |
|
|
|
|
|
|
|
||||
Other liabilities |
|
|
75,052 |
|
|
|
|
|
|
|
|
|
68,089 |
|
|
|
|
|
|
|
||||
Total stockholders’ equity |
|
|
823,754 |
|
|
|
|
|
|
|
|
|
810,490 |
|
|
|
|
|
|
|
||||
TOTAL LIABILITIES AND
|
|
$ |
6,560,868 |
|
|
|
|
|
|
|
|
$ |
6,720,492 |
|
|
|
|
|
|
|
||||
Net interest spread(3) |
|
|
|
|
|
|
|
|
3.79 |
% |
|
|
|
|
|
|
|
|
3.63 |
% |
||||
Net interest income, fully
|
|
|
|
|
$ |
60,109 |
|
|
|
|
|
|
|
|
$ |
58,443 |
|
|
|
|
||||
Net interest margin, fully
|
|
|
|
|
|
|
|
|
3.92 |
% |
|
|
|
|
|
|
|
|
3.76 |
% |
||||
Tax-equivalent adjustment |
|
|
|
|
|
(264 |
) |
|
|
0.01 |
% |
|
|
|
|
|
(269 |
) |
|
|
0.02 |
% |
||
Net interest income |
|
|
|
|
$ |
59,845 |
|
|
|
|
|
|
|
|
$ |
58,174 |
|
|
|
|
||||
Net interest margin(4) |
|
|
|
|
|
|
|
|
3.91 |
% |
|
|
|
|
|
|
|
|
3.74 |
% |
||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Net loan accretion impact on margin |
|
|
|
|
$ |
1,638 |
|
|
|
0.11 |
% |
|
|
|
|
$ |
1,395 |
|
|
|
0.09 |
% |
||
(1) |
Loan and lease balances are net of deferred origination fees and costs and initial indirect costs. Non-accrual loans and leases are included in total loan and lease balances. |
(2) |
Interest income and rates include the effects of a tax equivalent adjustment to adjust tax exempt investment income on tax exempt investment securities to a fully taxable basis, 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. |
Net interest income for the third quarter of 2021 was $59.8 million, an increase of $1.7 million, or 2.9%, from the second quarter of 2021.
The increase in net interest income was primarily due to:
- An increase of $2.0 million in interest income on loans and leases, due to higher balances and yields on loans and leases and increased Paycheck Protection Program ("PPP") servicing fees resulting from a higher volume of loan forgiveness.
Partially offset by:
- A decrease of $825,000 in interest income on securities, due to lower average balances of securities.
Tax-equivalent net interest margin for the third quarter of 2021 was 3.92%, an increase of 16 basis points compared to the second quarter of 2021. Total net accretion income on acquired loans contributed 11 basis points to the net interest margin for the third quarter of 2021 compared to nine basis points for the second quarter of 2021, an increase of two basis points. PPP loan interest income and net fee income combined contributed $5.4 million to net interest income for the third quarter of 2021 compared to $4.5 million for the second quarter of 2021 due to the timing of forgiveness of loans.
The average cost of total deposits was 0.08% for the third quarter of 2021, flat compared to the second quarter of 2021. Average non-interest-bearing demand deposits increased $20.8 million, while average money market account deposits decreased by $21.2 million. Average non-interest-bearing demand deposits were 41.1% of average total deposits for the third quarter of 2021 compared to 41.0% during the second quarter of 2021.
Provision for Loan and Lease Losses
The provision for loan and lease losses was $352,000 for the third quarter of 2021, an increase of $2.3 million compared to a recapture of provision of $2.0 million for the second quarter of 2021. The provision during the third quarter of 2021 was mainly driven by new loan and lease originations during the quarter, offset by a recapture of $1.7 million as a result of improved qualitative factors resulting from continued economic improvement.
Non-interest Income
The following table presents the components of non-interest income for the periods indicated:
|
|
Three Months Ended |
|
September 30, 2021
|
||||||||||||||||
|
|
September 30, |
|
June 30, |
|
September 30, |
|
June 30, |
|
September 30, |
||||||||||
(dollars in thousands) |
|
2021 |
|
2021 |
|
2020 |
|
2021 |
|
2020 |
||||||||||
NON-INTEREST INCOME |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Fees and service charges on deposits |
|
$ |
1,867 |
|
|
$ |
1,768 |
|
|
$ |
1,603 |
|
|
|
5.6 |
% |
|
|
16.4 |
% |
Loan servicing revenue |
|
|
3,344 |
|
|
|
3,188 |
|
|
|
2,936 |
|
|
|
4.9 |
% |
|
|
13.9 |
% |
Loan servicing asset revaluation |
|
|
(2,650 |
) |
|
|
7 |
|
|
|
1,122 |
|
|
NM |
|
|
NM |
|
||
ATM and interchange fees |
|
|
1,201 |
|
|
|
1,044 |
|
|
|
1,028 |
|
|
|
15.0 |
% |
|
|
16.7 |
% |
Net realized gains (losses) on securities
|
|
|
130 |
|
|
|
(136 |
) |
|
|
1,037 |
|
|
NM |
|
|
|
(87.4 |
)% |
|
Change in fair value of equity securities, net |
|
|
(275 |
) |
|
|
517 |
|
|
|
154 |
|
|
NM |
|
|
NM |
|
||
Net gains on sales of loans |
|
|
12,761 |
|
|
|
12,270 |
|
|
|
12,671 |
|
|
|
4.0 |
% |
|
|
0.7 |
% |
Wealth management and trust income |
|
|
815 |
|
|
|
722 |
|
|
|
693 |
|
|
|
12.8 |
% |
|
|
17.7 |
% |
Other non-interest income |
|
|
1,302 |
|
|
|
1,622 |
|
|
|
990 |
|
|
|
(19.7 |
)% |
|
|
31.7 |
% |
Total non-interest income |
|
$ |
18,495 |
|
|
$ |
21,002 |
|
|
$ |
22,234 |
|
|
|
(11.9 |
)% |
|
|
(16.8 |
)% |
Non-interest income for the third quarter of 2021 was $18.5 million, a decrease of $2.5 million, or 11.9%, compared to $21.0 million for the second quarter of 2021.
The decrease in total non-interest income was primarily due to:
- A $2.7 million loan servicing asset revaluation charge, which was a $2.7 million downward valuation adjustment for the current quarter compared to a $7,000 upward valuation adjustment in the prior quarter, due to changes in the fair value of the servicing asset; and
- A $793,000 decrease in the fair value of equity securities.
Partially offset by:
- An increase of $491,000 in net gains on sales of loans due to higher volume of loan sales.
During the third quarter of 2021, we sold $104.2 million of U.S. government guaranteed loans compared to $100.6 million during the second quarter of 2021.
Non-interest Expense
The following table presents the components of non-interest expense for the periods indicated:
|
|
Three Months Ended |
|
September 30, 2021
|
||||||||||||||||
|
|
September 30, |
|
June 30, |
|
September 30, |
|
June 30, |
|
September 30, |
||||||||||
(dollars in thousands) |
|
2021 |
|
2021 |
|
2020 |
|
2021 |
|
2020 |
||||||||||
NON-INTEREST EXPENSE |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Salaries and employee benefits |
|
$ |
25,978 |
|
|
$ |
24,588 |
|
|
$ |
23,126 |
|
|
|
5.7 |
% |
|
|
12.3 |
% |
Occupancy and equipment expense, net |
|
|
4,982 |
|
|
|
4,856 |
|
|
|
5,220 |
|
|
|
2.6 |
% |
|
|
(4.6 |
)% |
Loan and lease related expenses |
|
|
1,175 |
|
|
|
1,503 |
|
|
|
2,053 |
|
|
|
(21.7 |
)% |
|
|
(42.7 |
)% |
Legal, audit and other professional fees |
|
|
2,710 |
|
|
|
2,898 |
|
|
|
2,390 |
|
|
|
(6.5 |
)% |
|
|
13.4 |
% |
Data processing |
|
|
3,108 |
|
|
|
2,847 |
|
|
|
2,661 |
|
|
|
9.1 |
% |
|
|
16.8 |
% |
Net loss recognized on other real estate
|
|
|
42 |
|
|
|
389 |
|
|
|
349 |
|
|
|
(89.1 |
)% |
|
|
(87.8 |
)% |
Other intangible assets amortization expense |
|
|
1,738 |
|
|
|
1,848 |
|
|
|
1,947 |
|
|
|
(6.0 |
)% |
|
|
(10.7 |
)% |
Other non-interest expense |
|
|
4,447 |
|
|
|
4,052 |
|
|
|
3,941 |
|
|
|
9.7 |
% |
|
|
12.8 |
% |
Total non-interest expense |
|
$ |
44,180 |
|
|
$ |
42,981 |
|
|
$ |
41,687 |
|
|
|
2.8 |
% |
|
|
6.0 |
% |
Non-interest expense for the third quarter of 2021 was $44.2 million, an increase of $1.2 million, or 2.8%, from $43.0 million for the second quarter of 2021.
The increase in total non-interest expense was primarily due to:
- An increase of $1.4 million in salaries and employee benefits, primarily due to new hires during the quarter and increased commission expense; and
- An increase of $395,000 in other non-interest expense, mainly due to advertising campaigns launched during the quarter.
Partially offset by:
- A decrease of $328,000 in loan and leases related expenses, mainly due to decreases in government guaranteed loan expenses; and
- A decrease of $347,000 in net loss recognized on other real estate owned and other related expenses, due to decreases in write-downs.
Our efficiency ratio was 54.18% for the third quarter of 2021 compared to 51.95% for the second quarter of 2021. Excluding impairment charges on assets held for sale, our adjusted efficiency ratio1 was 52.35% for the third quarter of 2021, compared with 49.50% for the second quarter of 2021.
INCOME TAXES
We recorded income tax expense of $8.5 million during the third quarter of 2021, compared to $9.7 million during the second quarter of 2021. The effective tax rate was 25.1%, and 25.3%, for the third quarter and second quarter of 2021, respectively.
STATEMENTS OF FINANCIAL CONDITION
Total assets were $6.7 billion at September 30, 2021, an increase of $163.8 million compared to $6.5 billion at June 30, 2021.
The current quarter increase was primarily due to:
- An increase in loans and leases of $139.8 million, as a result of new originations, primarily driven by commercial real estate and commercial and industrial loans.
Partially offset by:
- A decreases of $68.2 million in securities available-for-sale, at fair value, due to principal paydowns used to fund loan and lease growth.
The following table shows our allocation of the originated, acquired impaired, and acquired non-impaired loans and leases at the dates indicated:
|
|
September 30, 2021 |
|
June 30, 2021 |
|
September 30, 2020 |
||||||||||||||||||
(dollars in thousands) |
|
Amount |
|
% of Total |
|
Amount |
|
% of Total |
|
Amount |
|
% of Total |
||||||||||||
Originated loans and leases |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Commercial real estate |
|
$ |
1,298,454 |
|
|
|
28.2 |
% |
|
$ |
1,156,824 |
|
|
|
25.9 |
% |
|
$ |
919,862 |
|
|
|
21.0 |
% |
Residential real estate |
|
|
387,578 |
|
|
|
8.4 |
% |
|
|
389,758 |
|
|
|
8.7 |
% |
|
|
458,364 |
|
|
|
10.5 |
% |
Construction, land development, and
|
|
|
336,460 |
|
|
|
7.3 |
% |
|
|
271,710 |
|
|
|
6.1 |
% |
|
|
234,017 |
|
|
|
5.3 |
% |
Commercial and industrial |
|
|
1,480,076 |
|
|
|
32.1 |
% |
|
|
1,350,471 |
|
|
|
30.2 |
% |
|
|
1,214,099 |
|
|
|
27.8 |
% |
Paycheck Protection Program |
|
|
268,081 |
|
|
|
5.8 |
% |
|
|
476,282 |
|
|
|
10.7 |
% |
|
|
622,191 |
|
|
|
14.2 |
% |
Installment and other |
|
|
998 |
|
|
|
0.0 |
% |
|
|
982 |
|
|
|
0.0 |
% |
|
|
2,346 |
|
|
|
0.1 |
% |
Leasing financing receivables |
|
|
331,149 |
|
|
|
7.2 |
% |
|
|
267,300 |
|
|
|
6.0 |
% |
|
|
185,700 |
|
|
|
4.2 |
% |
Total originated loans and leases |
|
$ |
4,102,796 |
|
|
|
89.0 |
% |
|
$ |
3,913,327 |
|
|
|
87.6 |
% |
|
$ |
3,636,579 |
|
|
|
83.1 |
% |
Acquired impaired loans |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Commercial real estate |
|
$ |
84,821 |
|
|
|
1.8 |
% |
|
$ |
91,313 |
|
|
|
2.0 |
% |
|
$ |
117,114 |
|
|
|
2.7 |
% |
Residential real estate |
|
|
61,893 |
|
|
|
1.3 |
% |
|
|
67,401 |
|
|
|
1.5 |
% |
|
|
84,197 |
|
|
|
1.9 |
% |
Construction, land development, and
|
|
|
1,746 |
|
|
|
0.1 |
% |
|
|
2,008 |
|
|
|
0.0 |
% |
|
|
4,804 |
|
|
|
0.1 |
% |
Commercial and industrial |
|
|
6,651 |
|
|
|
0.1 |
% |
|
|
7,444 |
|
|
|
0.2 |
% |
|
|
10,489 |
|
|
|
0.3 |
% |
Installment and other |
|
|
169 |
|
|
|
0.0 |
% |
|
|
180 |
|
|
|
0.0 |
% |
|
|
214 |
|
|
|
0.0 |
% |
Total acquired impaired loans |
|
$ |
155,280 |
|
|
|
3.3 |
% |
|
$ |
168,346 |
|
|
|
3.7 |
% |
|
$ |
216,818 |
|
|
|
5.0 |
% |
Acquired non-impaired loans and leases |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Commercial real estate |
|
$ |
235,103 |
|
|
|
5.1 |
% |
|
$ |
254,739 |
|
|
|
5.6 |
% |
|
$ |
310,879 |
|
|
|
7.1 |
% |
Residential real estate |
|
|
58,283 |
|
|
|
1.3 |
% |
|
|
65,119 |
|
|
|
1.5 |
% |
|
|
90,835 |
|
|
|
2.1 |
% |
Construction, land development, and
|
|
|
206 |
|
|
|
0.0 |
% |
|
|
208 |
|
|
|
0.0 |
% |
|
|
213 |
|
|
|
0.0 |
% |
Commercial and industrial |
|
|
49,678 |
|
|
|
1.1 |
% |
|
|
58,320 |
|
|
|
1.3 |
% |
|
|
104,221 |
|
|
|
2.4 |
% |
Installment and other |
|
|
275 |
|
|
|
0.0 |
% |
|
|
311 |
|
|
|
0.0 |
% |
|
|
583 |
|
|
|
0.0 |
% |
Leasing financing receivables |
|
|
7,607 |
|
|
|
0.2 |
% |
|
|
9,087 |
|
|
|
0.3 |
% |
|
|
14,389 |
|
|
|
0.3 |
% |
Total acquired non-impaired loans
|
|
$ |
351,152 |
|
|
|
7.7 |
% |
|
$ |
387,784 |
|
|
|
8.7 |
% |
|
$ |
521,120 |
|
|
|
11.9 |
% |
Total loans and leases |
|
$ |
4,609,228 |
|
|
|
100.0 |
% |
|
$ |
4,469,457 |
|
|
|
100.0 |
% |
|
$ |
4,374,517 |
|
|
|
100.0 |
% |
Allowance for loan and lease losses |
|
|
(60,598 |
) |
|
|
|
|
|
(61,719 |
) |
|
|
|
|
|
(61,258 |
) |
|
|
|
|||
Total loans and leases, net of allowance for
|
|
$ |
4,548,630 |
|
|
|
|
|
$ |
4,407,738 |
|
|
|
|
|
$ |
4,313,259 |
|
|
|
|
|||
Paycheck Protection Program
The following table presents the net PPP loans outstanding as of September 30, 2021:
|
|
PPP Loans Outstanding |
||||||||||
(dollars in thousands) |
|
First Round |
|
Second Round |
|
Total |
||||||
Principal outstanding |
|
$ |
12,561 |
|
|
$ |
263,058 |
|
|
$ |
275,619 |
|
Unearned processing fee |
|
|
(176 |
) |
|
|
(9,503 |
) |
|
|
(9,679 |
) |
Deferred cost |
|
|
47 |
|
|
|
2,094 |
|
|
|
2,141 |
|
PPP loans, net |
|
$ |
12,432 |
|
|
$ |
255,649 |
|
|
$ |
268,081 |
|
Number of loans outstanding |
|
|
128 |
|
|
|
1,624 |
|
|
|
1,752 |
|
|
|
|
|
|
|
|
|
|
|
|||
Forgiven |
|
|
95.9 |
% |
|
|
22.3 |
% |
|
|
70.7 |
% |
In review or submission process |
|
|
0.9 |
% |
|
|
10.9 |
% |
|
|
4.3 |
% |
Not applied for forgiveness |
|
|
3.2 |
% |
|
|
66.8 |
% |
|
|
25.0 |
% |
PPP loans decreased by $208.2 million in the third quarter of 2021 primarily as a result of forgiveness of PPP loans. Forgiveness for the third quarter 2021 was $202.4 million compared to $180.7 million for the second quarter of 2021.
ASSET QUALITY
Non-Performing Assets
The following table sets forth the amounts of non-performing loans and leases (excluding acquired impaired), other real estate owned, and accruing troubled debt restructured loans at the dates indicated:
|
|
|
|
|
|
|
|
|
|
|
% Change from |
|||||||||
(dollars in thousands) |
|
September 30,
|
|
June 30,
|
|
September 30,
|
|
June 30,
|
|
September 30,
|
||||||||||
Non-performing assets: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Non-accrual loans and leases |
|
$ |
34,465 |
|
|
$ |
35,514 |
|
|
$ |
43,196 |
|
|
|
(3.0 |
)% |
|
|
(20.2 |
)% |
Past due loans and leases 90 days or more
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
—% |
|
|
—% |
|
||
Total non-performing loans and leases |
|
$ |
34,465 |
|
|
$ |
35,514 |
|
|
$ |
43,196 |
|
|
|
(3.0 |
)% |
|
|
(20.2 |
)% |
Other real estate owned |
|
|
3,033 |
|
|
|
4,417 |
|
|
|
8,150 |
|
|
|
(31.3 |
)% |
|
|
(62.8 |
)% |
Total non-performing assets |
|
$ |
37,498 |
|
|
$ |
39,931 |
|
|
$ |
51,346 |
|
|
|
(6.1 |
)% |
|
|
(27.0 |
)% |
Accruing troubled debt restructured loans (1) |
|
$ |
2,366 |
|
|
$ |
2,395 |
|
|
$ |
2,293 |
|
|
|
(1.3 |
)% |
|
|
3.2 |
% |
Total non-performing loans and leases as a
|
|
|
0.75 |
% |
|
|
0.79 |
% |
|
|
0.99 |
% |
|
|
|
|
|
|
||
Total non-performing assets as a percentage
|
|
|
0.56 |
% |
|
|
0.61 |
% |
|
|
0.79 |
% |
|
|
|
|
|
|
||
Allowance for loan and lease losses as a
|
|
|
175.82 |
% |
|
|
173.79 |
% |
|
|
141.81 |
% |
|
|
|
|
|
|
||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Non-performing assets guaranteed by
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Non-accrual loans guaranteed |
|
$ |
6,326 |
|
|
$ |
5,847 |
|
|
$ |
3,749 |
|
|
|
8.2 |
% |
|
|
68.8 |
% |
Past due loans 90 days or more and still
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
—% |
|
|
—% |
|
||
Total non-performing loans guaranteed |
|
$ |
6,326 |
|
|
$ |
5,847 |
|
|
$ |
3,749 |
|
|
|
8.2 |
% |
|
|
68.8 |
% |
Accruing troubled debt restructured loans
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
— |
|
|
—% |
|
|
—% |
|
||
Total non-performing loans and leases
|
|
|
0.61 |
% |
|
|
0.66 |
% |
|
|
0.90 |
% |
|
|
|
|
|
|
||
Total non-performing assets not guaranteed
|
|
|
0.46 |
% |
|
|
0.52 |
% |
|
|
0.73 |
% |
|
|
|
|
|
|
||
Variances in non-performing assets were:
- Non-performing loans and leases were $34.5 million at September 30, 2021, a decrease of $1.0 million from $35.5 million at June 30, 2021; and
- Other real estate owned was $3.0 million at September 30, 2021, a decrease of $1.4 million from $4.4 million at June 30, 2021 due to sales.
Allowance for Loan and Lease Losses
The following table presents the balance and activity within the allowance for loan and lease losses for the periods indicated:
|
|
Three Months Ended |
||||||||||
|
|
September 30, |
|
June 30, |
|
September 30, |
||||||
(dollars in thousands) |
|
2021 |
|
2021 |
|
2020 |
||||||
Allowance for loan and lease losses, beginning of period |
|
$ |
61,719 |
|
|
$ |
65,590 |
|
|
$ |
51,300 |
|
Provision/(recapture) for loan and lease losses |
|
|
352 |
|
|
|
(1,969 |
) |
|
|
15,740 |
|
Net charge-offs of loans and leases |
|
|
(1,473 |
) |
|
|
(1,902 |
) |
|
|
(5,782 |
) |
Allowance for loan and lease losses, end of period |
|
$ |
60,598 |
|
|
$ |
61,719 |
|
|
$ |
61,258 |
|
|
|
|
|
|
|
|
|
|
|
|||
Allowance for loan and lease losses to period end
|
|
|
1.31 |
% |
|
|
1.38 |
% |
|
|
1.40 |
% |
Net charge-offs (annualized) to average loans
|
|
|
0.13 |
% |
|
|
0.17 |
% |
|
|
0.53 |
% |
Provision/(recapture) for loan and lease losses
|
|
|
0.24 |
x |
|
(1.04)x |
|
|
|
2.72 |
x |
|
The allowance for loan and lease losses as a percentage of total loans and leases held for investment decreased to 1.31% at September 30, 2021 compared to 1.38% at June 30, 2021. The allowance for loan and lease losses as a percentage of total loans and leases held for investment excluding PPP loans decreased to 1.40% at September 30, 2021 from 1.55% at June 30, 2021.
In June 2016, the Financial Accounting Standards Board (“FASB”) issued new guidance on the recognition of credit losses, which replaces the incurred loss impairment methodology with a methodology that reflects expected credit losses. In November 2019, the FASB delayed the effective date of the standard for smaller reporting companies, which includes emerging growth companies. Assuming we remain an emerging growth company, the Company anticipates adopting the standard on December 31, 2022. We are in the process of implementation and determining the impact that this new authoritative guidance will have on our consolidated financial statements.
Net Charge-Offs
Net charge-offs during the third quarter of 2021 were $1.5 million, or 0.13% of average loans and leases, on an annualized basis, a decrease of $429,000 compared to $1.9 million or 0.17% of average loans and leases, during the second quarter of 2021, and a decrease of $4.3 million from $5.8 million or 0.53% of average loans and leases from the comparable period a year ago.
Net charge-offs for the third quarter of 2021 included $1.3 million in the unguaranteed portion of U.S. government guaranteed loans, while net charge-offs for the second quarter of 2021 and third quarter of 2020 included $1.6 million and $4.1 million, respectively, in the unguaranteed portion of U.S. government guaranteed loans.
Deposits and Other Liabilities
The following table presents the composition of deposits at the dates indicated:
|
|
|
|
|
|
|
|
|
|
|
Change from |
|||||||||
(dollars in thousands) |
|
September 30,
|
|
June 30,
|
|
September 30,
|
|
June 30,
|
|
September 30,
|
||||||||||
Non-interest-bearing demand deposits |
|
$ |
2,117,749 |
|
|
$ |
2,089,455 |
|
|
$ |
1,718,682 |
|
|
|
1.4 |
% |
|
|
23.2 |
% |
Interest-bearing checking accounts |
|
|
652,824 |
|
|
|
653,558 |
|
|
|
584,682 |
|
|
|
(0.1 |
)% |
|
|
11.7 |
% |
Money market demand accounts |
|
|
1,057,419 |
|
|
|
1,023,675 |
|
|
|
1,153,433 |
|
|
|
3.3 |
% |
|
|
(8.3 |
)% |
Other savings |
|
|
627,294 |
|
|
|
613,136 |
|
|
|
542,741 |
|
|
|
2.3 |
% |
|
|
15.6 |
% |
Time deposits (below $250,000) |
|
|
553,364 |
|
|
|
567,469 |
|
|
|
622,328 |
|
|
|
(2.5 |
)% |
|
|
(11.1 |
)% |
Time deposits ($250,000 and above) |
|
|
149,628 |
|
|
|
144,902 |
|
|
|
188,379 |
|
|
|
3.3 |
% |
|
|
(20.6 |
)% |
Total deposits |
|
$ |
5,158,278 |
|
|
$ |
5,092,195 |
|
|
$ |
4,810,245 |
|
|
|
1.3 |
% |
|
|
7.2 |
% |
Total deposits were $5.2 billion at September 30, 2021, an increase of $66.1 million, or 1.3%, compared to $5.1 billion at June 30, 2021. Non-interest-bearing deposits were 41.1% and 41.0% of total deposits at September 30, 2021 and June 30, 2021, respectively.
The increase in the current quarter was primarily due to:
- An increase in non-interest-bearing deposits of $28.3 million, due to increases in commercial deposits; and
- An increase in money market demand accounts of $33.7 million, principally driven by increases in personal money market accounts.
Total borrowings and other liabilities were $721.8 million at September 30, 2021, an increase of $90.4 million from $631.3 million at June 30, 2021, primarily driven by an increase in Federal Home Loan Bank advances of $243.0 million, offset by the Paycheck Protection Program Liquidity Facility decreasing by $148.3 million to $156.4 million at September 30, 2021 from $304.7 million at June 30, 2021.
Stockholders’ Equity
Total stockholders’ equity was $824.4 million at September 30, 2021, an increase of $7.3 million from $817.1 million at June 30, 2021. The increase was primarily due to an increase in retained earnings, offset by a decrease in the fair value of available-for-sale securities, and repurchases of common stock.
Under its stock repurchase program the Company repurchased an aggregate of 460,220 shares at an average price per share of $22.62 during the third quarter, and 1,331,708 shares at an average price of $21.68 year-to-date.
The following table presents actual regulatory capital dollar amounts and ratios of the Company and Byline Banks of September 30, 2021:
|
|
Actual |
|
Minimum Capital
|
|
Required to be
|
||||||||||||||||||
September 30, 2021 |
|
Amount |
|
Ratio |
|
Amount |
|
Ratio |
|
Amount |
|
Ratio |
||||||||||||
Total capital to risk weighted assets: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Company |
|
$ |
821,646 |
|
|
|
14.78 |
% |
|
$ |
444,596 |
|
|
|
8.00 |
% |
|
N/A |
|
|
N/A |
|
||
Bank |
|
|
747,862 |
|
|
|
13.50 |
% |
|
|
443,176 |
|
|
|
8.00 |
% |
|
$ |
553,971 |
|
|
|
10.00 |
% |
Tier 1 capital to risk weighted assets: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Company |
|
$ |
684,523 |
|
|
|
12.32 |
% |
|
$ |
333,447 |
|
|
|
6.00 |
% |
|
N/A |
|
|
N/A |
|
||
Bank |
|
$ |
685,739 |
|
|
|
12.38 |
% |
|
|
332,382 |
|
|
|
6.00 |
% |
|
$ |
443,176 |
|
|
|
8.00 |
% |
Common Equity Tier 1 (CET1) to
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Company |
|
$ |
629,085 |
|
|
|
11.32 |
% |
|
$ |
250,085 |
|
|
|
4.50 |
% |
|
N/A |
|
|
N/A |
|
||
Bank |
|
|
685,739 |
|
|
|
12.38 |
% |
|
|
249,287 |
|
|
|
4.50 |
% |
|
$ |
360,081 |
|
|
|
6.50 |
% |
Tier 1 capital to average assets: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Company |
|
$ |
684,523 |
|
|
|
11.21 |
% |
|
$ |
244,268 |
|
|
|
4.00 |
% |
|
N/A |
|
|
N/A |
|
||
Bank |
|
|
685,739 |
|
|
|
11.24 |
% |
|
|
244,138 |
|
|
|
4.00 |
% |
|
$ |
305,173 |
|
|
|
5.00 |
% |
Capital ratios for the period presented are based on the Basel III regulatory capital framework as applied to our current business and operations, and are subject to, among other things, completion and filing of our regulatory reports and ongoing regulatory review and implementation guidance.
Conference Call, Webcast and Slide Presentation
We will host a conference call and webcast at 9:00 a.m. Central Time on Friday, October 29, 2021 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 (844) 200-6205; passcode 611698. A recorded replay can be accessed through November 12, 2021 by dialing (866) 813-9403; passcode: 960656.
A slide presentation relating to our third quarter 2021 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 for Byline Bank, a full service commercial bank serving small- and medium-sized businesses, financial sponsors, and consumers. Byline Bank has approximately $6.7 billion in assets and operates more than 40 full service branch locations throughout the Chicago and Milwaukee metropolitan areas. Byline Bank offers a broad range of commercial and retail banking products and services including small ticket equipment leasing solutions and is one of the top five 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 judgement and analysis, which may or may not prove to be correct, and which are subject to uncertainties and contingencies outside the control of Byline and its respective affiliates, directors, employees and other representatives, which could cause actual results to differ materially from those presented in this communication.
The COVID-19 pandemic is adversely affecting us, our employees, customers, counterparties and third-party service providers, and the ultimate extent of the impacts on our business, financial position, results of operations, liquidity, and prospects is uncertain. Deterioration in general business and economic conditions, including increases in unemployment rates or turbulence in U.S. or global financial markets, could adversely affect our revenues and the values of our assets and liabilities, reduce the availability of funding, and lead to a tightening of credit and further increase stock price volatility. In addition, changes to statutes, regulations, or regulatory policies or practices as a result of, or in response to COVID-19, could affect us in substantial and unpredictable ways.
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, 2020. 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) |
||||||||||||||||||||
(dollars in thousands) |
|
September 30,
|
|
June 30,
|
|
March 31,
|
|
December 31,
|
|
September 30,
|
||||||||||
ASSETS |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Cash and due from banks |
|
$ |
46,900 |
|
|
$ |
50,558 |
|
|
$ |
47,101 |
|
|
$ |
41,432 |
|
|
$ |
47,433 |
|
Interest bearing deposits with other banks |
|
|
95,978 |
|
|
|
52,138 |
|
|
|
66,038 |
|
|
|
41,988 |
|
|
|
53,645 |
|
Cash and cash equivalents |
|
|
142,878 |
|
|
|
102,696 |
|
|
|
113,139 |
|
|
|
83,420 |
|
|
|
101,078 |
|
Equity and other securities, at fair value |
|
|
10,299 |
|
|
|
10,575 |
|
|
|
8,557 |
|
|
|
8,764 |
|
|
|
8,335 |
|
Securities available-for-sale, at fair value |
|
|
1,427,605 |
|
|
|
1,495,789 |
|
|
|
1,675,907 |
|
|
|
1,447,230 |
|
|
|
1,509,211 |
|
Securities held-to-maturity, at amortized cost |
|
|
3,887 |
|
|
|
3,890 |
|
|
|
3,892 |
|
|
|
4,395 |
|
|
|
4,400 |
|
Restricted stock, at cost |
|
|
15,927 |
|
|
|
11,927 |
|
|
|
19,057 |
|
|
|
10,507 |
|
|
|
9,652 |
|
Loans held for sale |
|
|
48,372 |
|
|
|
25,046 |
|
|
|
28,584 |
|
|
|
7,924 |
|
|
|
49,049 |
|
Loans and leases: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Loans and leases |
|
|
4,609,228 |
|
|
|
4,469,457 |
|
|
|
4,454,620 |
|
|
|
4,340,535 |
|
|
|
4,374,517 |
|
Allowance for loan and lease losses |
|
|
(60,598 |
) |
|
|
(61,719 |
) |
|
|
(65,590 |
) |
|
|
(66,347 |
) |
|
|
(61,258 |
) |
Net loans and leases |
|
|
4,548,630 |
|
|
|
4,407,738 |
|
|
|
4,389,030 |
|
|
|
4,274,188 |
|
|
|
4,313,259 |
|
Servicing assets, at fair value |
|
|
23,597 |
|
|
|
24,683 |
|
|
|
22,140 |
|
|
|
22,042 |
|
|
|
21,267 |
|
Premises and equipment, net |
|
|
76,995 |
|
|
|
80,482 |
|
|
|
85,182 |
|
|
|
86,728 |
|
|
|
94,638 |
|
Other real estate owned, net |
|
|
3,033 |
|
|
|
4,417 |
|
|
|
5,952 |
|
|
|
6,350 |
|
|
|
8,150 |
|
Goodwill and other intangible assets, net |
|
|
167,296 |
|
|
|
169,034 |
|
|
|
170,882 |
|
|
|
172,631 |
|
|
|
174,523 |
|
Bank-owned life insurance |
|
|
60,992 |
|
|
|
60,628 |
|
|
|
60,258 |
|
|
|
10,009 |
|
|
|
9,952 |
|
Deferred tax assets, net |
|
|
45,165 |
|
|
|
43,127 |
|
|
|
48,662 |
|
|
|
40,181 |
|
|
|
35,945 |
|
Accrued interest receivable and other assets |
|
|
129,775 |
|
|
|
100,570 |
|
|
|
118,883 |
|
|
|
216,283 |
|
|
|
157,054 |
|
Total assets |
|
$ |
6,704,451 |
|
|
$ |
6,540,602 |
|
|
$ |
6,750,125 |
|
|
$ |
6,390,652 |
|
|
$ |
6,496,513 |
|
LIABILITIES AND STOCKHOLDERS’ EQUITY |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
LIABILITIES |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Non-interest-bearing demand deposits |
|
$ |
2,117,749 |
|
|
$ |
2,089,455 |
|
|
$ |
2,015,643 |
|
|
$ |
1,762,676 |
|
|
$ |
1,718,682 |
|
Interest-bearing deposits |
|
|
3,040,529 |
|
|
|
3,002,740 |
|
|
|
3,008,897 |
|
|
|
2,989,355 |
|
|
|
3,091,563 |
|
Total deposits |
|
|
5,158,278 |
|
|
|
5,092,195 |
|
|
|
5,024,540 |
|
|
|
4,752,031 |
|
|
|
4,810,245 |
|
Other borrowings |
|
|
539,119 |
|
|
|
446,836 |
|
|
|
749,719 |
|
|
|
647,901 |
|
|
|
710,560 |
|
Subordinated notes, net |
|
|
73,473 |
|
|
|
73,429 |
|
|
|
73,386 |
|
|
|
73,342 |
|
|
|
73,299 |
|
Junior subordinated debentures issued to
|
|
|
36,796 |
|
|
|
36,682 |
|
|
|
36,565 |
|
|
|
36,451 |
|
|
|
36,331 |
|
Accrued expenses and other liabilities |
|
|
72,367 |
|
|
|
74,387 |
|
|
|
72,120 |
|
|
|
75,463 |
|
|
|
71,382 |
|
Total liabilities |
|
|
5,880,033 |
|
|
|
5,723,529 |
|
|
|
5,956,330 |
|
|
|
5,585,188 |
|
|
|
5,701,817 |
|
STOCKHOLDERS’ EQUITY |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Preferred stock |
|
|
10,438 |
|
|
|
10,438 |
|
|
|
10,438 |
|
|
|
10,438 |
|
|
|
10,438 |
|
Common stock |
|
|
386 |
|
|
|
385 |
|
|
|
385 |
|
|
|
384 |
|
|
|
383 |
|
Additional paid-in capital |
|
|
592,192 |
|
|
|
590,422 |
|
|
|
589,209 |
|
|
|
587,165 |
|
|
|
586,057 |
|
Retained earnings |
|
|
258,077 |
|
|
|
236,363 |
|
|
|
210,385 |
|
|
|
191,098 |
|
|
|
180,162 |
|
Treasury stock |
|
|
(31,161 |
) |
|
|
(20,712 |
) |
|
|
(8,275 |
) |
|
|
(1,668 |
) |
|
|
(1,668 |
) |
Accumulated other comprehensive income
|
|
|
(5,514 |
) |
|
|
177 |
|
|
|
(8,347 |
) |
|
|
18,047 |
|
|
|
19,324 |
|
Total stockholders’ equity |
|
|
824,418 |
|
|
|
817,073 |
|
|
|
793,795 |
|
|
|
805,464 |
|
|
|
794,696 |
|
Total liabilities and stockholders’ equity |
$ |
6,704,451 |
$ |
6,540,602 |
$ |
6,750,125 |
$ |
6,390,652 |
$ |
6,496,513 |
|
|||||||||
BYLINE BANCORP, INC. AND SUBSIDIARIES |
||||||||||||||||||||||||||||
CONSOLIDATED STATEMENTS OF OPERATIONS (unaudited) |
||||||||||||||||||||||||||||
|
|
Three Months Ended |
|
Nine Months Ended |
||||||||||||||||||||||||
(dollars in thousands, except per share data) |
|
September 30,
|
|
June 30,
|
|
March 31,
|
|
December 31,
|
|
September 30,
|
|
September 30,
|
|
September 30,
|
||||||||||||||
INTEREST AND DIVIDEND INCOME |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
Interest and fees on loans and leases |
|
$ |
56,291 |
|
|
$ |
54,324 |
|
|
$ |
53,808 |
|
|
$ |
53,441 |
|
|
$ |
51,036 |
|
|
$ |
164,423 |
|
|
$ |
155,347 |
|
Interest on securities |
|
|
5,534 |
|
|
|
6,359 |
|
|
|
6,089 |
|
|
|
6,252 |
|
|
|
7,070 |
|
|
|
17,982 |
|
|
|
22,616 |
|
Other interest and dividend income |
|
|
947 |
|
|
|
628 |
|
|
|
262 |
|
|
|
232 |
|
|
|
128 |
|
|
|
1,837 |
|
|
|
1,342 |
|
Total interest and dividend income |
|
|
62,772 |
|
|
|
61,311 |
|
|
|
60,159 |
|
|
|
59,925 |
|
|
|
58,234 |
|
|
|
184,242 |
|
|
|
179,305 |
|
INTEREST EXPENSE |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
Deposits |
|
|
986 |
|
|
|
1,058 |
|
|
|
1,421 |
|
|
|
1,814 |
|
|
|
2,760 |
|
|
|
3,465 |
|
|
|
14,810 |
|
Other borrowings |
|
|
349 |
|
|
|
482 |
|
|
|
502 |
|
|
|
480 |
|
|
|
465 |
|
|
|
1,333 |
|
|
|
2,838 |
|
Subordinated notes and debentures |
|
|
1,592 |
|
|
|
1,597 |
|
|
|
1,596 |
|
|
|
1,611 |
|
|
|
1,485 |
|
|
|
4,785 |
|
|
|
2,699 |
|
Total interest expense |
|
|
2,927 |
|
|
|
3,137 |
|
|
|
3,519 |
|
|
|
3,905 |
|
|
|
4,710 |
|
|
|
9,583 |
|
|
|
20,347 |
|
Net interest income |
|
|
59,845 |
|
|
|
58,174 |
|
|
|
56,640 |
|
|
|
56,020 |
|
|
|
53,524 |
|
|
|
174,659 |
|
|
|
158,958 |
|
PROVISION/(RECAPTURE) FOR LOAN
|
|
|
352 |
|
|
|
(1,969 |
) |
|
|
4,367 |
|
|
|
10,236 |
|
|
|
15,740 |
|
|
|
2,750 |
|
|
|
45,713 |
|
Net interest income after
|
|
|
59,493 |
|
|
|
60,143 |
|
|
|
52,273 |
|
|
|
45,784 |
|
|
|
37,784 |
|
|
|
171,909 |
|
|
|
113,245 |
|
NON-INTEREST INCOME |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
Fees and service charges on deposits |
|
|
1,867 |
|
|
|
1,768 |
|
|
|
1,664 |
|
|
|
1,740 |
|
|
|
1,603 |
|
|
|
5,299 |
|
|
|
4,731 |
|
Loan servicing revenue |
|
|
3,344 |
|
|
|
3,188 |
|
|
|
2,769 |
|
|
|
2,645 |
|
|
|
2,936 |
|
|
|
9,301 |
|
|
|
8,674 |
|
Loan servicing asset revaluation |
|
|
(2,650 |
) |
|
|
7 |
|
|
|
(1,505 |
) |
|
|
(2,298 |
) |
|
|
1,122 |
|
|
|
(4,148 |
) |
|
|
(2,653 |
) |
ATM and interchange fees |
|
|
1,201 |
|
|
|
1,044 |
|
|
|
1,012 |
|
|
|
1,076 |
|
|
|
1,028 |
|
|
|
3,257 |
|
|
|
3,089 |
|
Net realized gains (losses) on securities
|
|
|
130 |
|
|
|
(136 |
) |
|
|
1,462 |
|
|
|
2,889 |
|
|
|
1,037 |
|
|
|
1,456 |
|
|
|
2,412 |
|
Change in fair value of equity securities,
|
|
|
(275 |
) |
|
|
517 |
|
|
|
(206 |
) |
|
|
428 |
|
|
|
154 |
|
|
|
36 |
|
|
|
301 |
|
Net gains on sales of loans |
|
|
12,761 |
|
|
|
12,270 |
|
|
|
8,319 |
|
|
|
9,449 |
|
|
|
12,671 |
|
|
|
33,350 |
|
|
|
23,900 |
|
Wealth management and trust income |
|
|
815 |
|
|
|
722 |
|
|
|
768 |
|
|
|
710 |
|
|
|
693 |
|
|
|
2,305 |
|
|
|
1,970 |
|
Other non-interest income |
|
|
1,302 |
|
|
|
1,622 |
|
|
|
1,459 |
|
|
|
1,051 |
|
|
|
990 |
|
|
|
4,383 |
|
|
|
1,946 |
|
Total non-interest income |
|
|
18,495 |
|
|
|
21,002 |
|
|
|
15,742 |
|
|
|
17,690 |
|
|
|
22,234 |
|
|
|
55,239 |
|
|
|
44,370 |
|
NON-INTEREST EXPENSE |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
Salaries and employee benefits |
|
|
25,978 |
|
|
|
24,588 |
|
|
|
21,806 |
|
|
|
22,559 |
|
|
|
23,126 |
|
|
|
72,372 |
|
|
|
67,197 |
|
Occupancy and equipment expense, net |
|
|
4,982 |
|
|
|
4,856 |
|
|
|
5,779 |
|
|
|
6,854 |
|
|
|
5,220 |
|
|
|
15,617 |
|
|
|
16,103 |
|
Loan and lease related expenses |
|
|
1,175 |
|
|
|
1,503 |
|
|
|
951 |
|
|
|
1,324 |
|
|
|
2,053 |
|
|
|
3,629 |
|
|
|
4,631 |
|
Legal, audit, and other professional fees |
|
|
2,710 |
|
|
|
2,898 |
|
|
|
2,214 |
|
|
|
1,336 |
|
|
|
2,390 |
|
|
|
7,822 |
|
|
|
6,802 |
|
Data processing |
|
|
3,108 |
|
|
|
2,847 |
|
|
|
2,755 |
|
|
|
2,748 |
|
|
|
2,661 |
|
|
|
8,710 |
|
|
|
8,152 |
|
Net loss recognized on other real
|
|
|
42 |
|
|
|
389 |
|
|
|
621 |
|
|
|
495 |
|
|
|
349 |
|
|
|
1,052 |
|
|
|
1,324 |
|
Other intangible assets amortization
|
|
|
1,738 |
|
|
|
1,848 |
|
|
|
1,749 |
|
|
|
1,892 |
|
|
|
1,947 |
|
|
|
5,335 |
|
|
|
5,732 |
|
Other non-interest expense |
|
|
4,447 |
|
|
|
4,052 |
|
|
|
2,967 |
|
|
|
9,813 |
|
|
|
3,941 |
|
|
|
11,466 |
|
|
|
12,460 |
|
Total non-interest expense |
|
|
44,180 |
|
|
|
42,981 |
|
|
|
38,842 |
|
|
|
47,021 |
|
|
|
41,687 |
|
|
|
126,003 |
|
|
|
122,401 |
|
INCOME BEFORE PROVISION FOR INCOME
|
|
|
33,808 |
|
|
|
38,164 |
|
|
|
29,173 |
|
|
|
16,453 |
|
|
|
18,331 |
|
|
|
101,145 |
|
|
|
35,214 |
|
PROVISION FOR INCOME TAXES |
|
|
8,502 |
|
|
|
9,672 |
|
|
|
7,375 |
|
|
|
4,162 |
|
|
|
5,260 |
|
|
|
25,549 |
|
|
|
10,038 |
|
NET INCOME |
|
|
25,306 |
|
|
|
28,492 |
|
|
|
21,798 |
|
|
|
12,291 |
|
|
|
13,071 |
|
|
|
75,596 |
|
|
|
25,176 |
|
Dividends on preferred shares |
|
|
196 |
|
|
|
195 |
|
|
|
196 |
|
|
|
196 |
|
|
|
196 |
|
|
|
587 |
|
|
|
587 |
|
INCOME AVAILABLE TO COMMON
|
|
$ |
25,110 |
|
|
$ |
28,297 |
|
|
$ |
21,602 |
|
|
$ |
12,095 |
|
|
$ |
12,875 |
|
|
$ |
75,009 |
|
|
$ |
24,589 |
|
EARNINGS PER COMMON SHARE |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
Basic |
|
$ |
0.68 |
|
|
$ |
0.75 |
|
|
$ |
0.57 |
|
|
$ |
0.32 |
|
|
$ |
0.34 |
|
|
$ |
1.99 |
|
|
$ |
0.65 |
|
Diluted |
$ |
0.66 |
|
$ |
0.73 |
$ |
0.56 |
$ |
0.31 |
|
$ |
0.34 |
|
$ |
1.95 |
$ |
0.64 |
|
||||||||||
BYLINE BANCORP, INC. AND SUBSIDIARIES |
|||||||||||||||||||||||||||
SELECTED FINANCIAL DATA (unaudited) |
|||||||||||||||||||||||||||
|
As of or For the Three Months Ended |
|
As of or For the Nine Months Ended |
||||||||||||||||||||||||
(dollars in thousands, except share |
September 30, |
|
June 30, |
|
March 31, |
|
December 31, |
|
September 30, |
|
September 30, |
|
September 30, |
||||||||||||||
and per share data) |
2021 |
|
2021 |
|
2021 |
|
2020 |
|
2020 |
|
2021 |
|
2020 |
||||||||||||||
Common Share Data |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
Summary of Operations |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
Net interest income |
$ |
59,845 |
|
|
$ |
58,174 |
|
|
$ |
56,640 |
|
|
$ |
56,020 |
|
|
$ |
53,524 |
|
|
$ |
174,659 |
|
|
$ |
158,958 |
|
Provision/(recapture) for loan and
|
|
352 |
|
|
|
(1,969 |
) |
|
|
4,367 |
|
|
|
10,236 |
|
|
|
15,740 |
|
|
|
2,750 |
|
|
|
45,713 |
|
Non-interest income |
|
18,495 |
|
|
|
21,002 |
|
|
|
15,742 |
|
|
|
17,690 |
|
|
|
22,234 |
|
|
|
55,239 |
|
|
|
44,370 |
|
Non-interest expense |
|
44,180 |
|
|
|
42,981 |
|
|
|
38,842 |
|
|
|
47,021 |
|
|
|
41,687 |
|
|
|
126,003 |
|
|
|
122,401 |
|
Income before provision for
|
|
33,808 |
|
|
|
38,164 |
|
|
|
29,173 |
|
|
|
16,453 |
|
|
|
18,331 |
|
|
|
101,145 |
|
|
|
35,214 |
|
Provision for income taxes |
|
8,502 |
|
|
|
9,672 |
|
|
|
7,375 |
|
|
|
4,162 |
|
|
|
5,260 |
|
|
|
25,549 |
|
|
|
10,038 |
|
Net income |
|
25,306 |
|
|
|
28,492 |
|
|
|
21,798 |
|
|
|
12,291 |
|
|
|
13,071 |
|
|
|
75,596 |
|
|
|
25,176 |
|
Dividends on preferred shares |
|
196 |
|
|
|
195 |
|
|
|
196 |
|
|
|
196 |
|
|
|
196 |
|
|
|
587 |
|
|
|
587 |
|
Net income available
|
$ |
25,110 |
|
|
$ |
28,297 |
|
|
$ |
21,602 |
|
|
$ |
12,095 |
|
|
$ |
12,875 |
|
|
$ |
75,009 |
|
|
$ |
24,589 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
Earnings per Common Share |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
Basic earnings per common share |
$ |
0.68 |
|
|
$ |
0.75 |
|
|
$ |
0.57 |
|
|
$ |
0.32 |
|
|
$ |
0.34 |
|
|
$ |
1.99 |
|
|
$ |
0.65 |
|
Diluted earnings per common share |
$ |
0.66 |
|
|
$ |
0.73 |
|
|
$ |
0.56 |
|
|
$ |
0.31 |
|
|
$ |
0.34 |
|
|
$ |
1.95 |
|
|
$ |
0.64 |
|
Adjusted diluted earnings per common
|
$ |
0.69 |
|
|
$ |
0.77 |
|
|
$ |
0.57 |
|
|
$ |
0.38 |
|
|
$ |
0.34 |
|
|
$ |
2.02 |
|
|
$ |
0.65 |
|
Weighted average common shares
|
|
37,200,778 |
|
|
|
37,965,658 |
|
|
|
38,164,201 |
|
|
|
38,202,665 |
|
|
|
38,057,350 |
|
|
|
37,773,350 |
|
|
|
37,973,694 |
|
Weighted average common shares
|
|
38,018,301 |
|
|
|
38,696,036 |
|
|
|
38,915,482 |
|
|
|
38,574,129 |
|
|
|
38,249,335 |
|
|
|
38,523,112 |
|
|
|
38,251,963 |
|
Common shares outstanding |
|
37,690,087 |
|
|
|
38,094,972 |
|
|
|
38,641,851 |
|
|
|
38,618,054 |
|
|
|
38,568,916 |
|
|
|
37,690,087 |
|
|
|
38,568,916 |
|
Cash dividends per common share |
$ |
0.09 |
|
|
$ |
0.06 |
|
|
$ |
0.06 |
|
|
$ |
0.03 |
|
|
$ |
0.03 |
|
|
$ |
0.21 |
|
|
$ |
0.09 |
|
Dividend payout ratio on
|
|
13.64 |
% |
|
|
8.22 |
% |
|
|
10.71 |
% |
|
|
9.68 |
% |
|
|
8.82 |
% |
|
|
10.77 |
% |
|
|
14.06 |
% |
Tangible book value per
|
$ |
17.16 |
|
|
$ |
16.74 |
|
|
$ |
15.85 |
|
|
$ |
16.12 |
|
|
$ |
15.81 |
|
|
$ |
17.16 |
|
|
$ |
15.81 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
Key Ratios and Performance Metrics
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
Net interest margin, fully taxable
|
|
3.92 |
% |
|
|
3.76 |
% |
|
|
3.78 |
% |
|
|
3.78 |
% |
|
|
3.61 |
% |
|
|
3.82 |
% |
|
|
3.82 |
% |
Average cost of deposits |
|
0.08 |
% |
|
|
0.08 |
% |
|
|
0.12 |
% |
|
|
0.15 |
% |
|
|
0.22 |
% |
|
|
0.09 |
% |
|
|
0.43 |
% |
Efficiency ratio(2) |
|
54.18 |
% |
|
|
51.95 |
% |
|
|
51.25 |
% |
|
|
61.22 |
% |
|
|
52.46 |
% |
|
|
52.49 |
% |
|
|
57.38 |
% |
Adjusted efficiency ratio(1)(2)(3) |
|
52.35 |
% |
|
|
49.50 |
% |
|
|
50.41 |
% |
|
|
55.77 |
% |
|
|
52.42 |
% |
|
|
50.76 |
% |
|
|
57.01 |
% |
Non-interest expense to average assets |
|
2.67 |
% |
|
|
2.57 |
% |
|
|
2.39 |
% |
|
|
2.92 |
% |
|
|
2.59 |
% |
|
|
2.54 |
% |
|
|
2.70 |
% |
Adjusted non-interest expense to
|
|
2.58 |
% |
|
|
2.45 |
% |
|
|
2.35 |
% |
|
|
2.67 |
% |
|
|
2.59 |
% |
|
|
2.46 |
% |
|
|
2.68 |
% |
Return on average stockholders' equity |
|
12.19 |
% |
|
|
14.10 |
% |
|
|
10.96 |
% |
|
|
6.07 |
% |
|
|
6.57 |
% |
|
|
12.42 |
% |
|
|
4.33 |
% |
Adjusted return on average
|
|
12.69 |
% |
|
|
14.80 |
% |
|
|
11.18 |
% |
|
|
7.50 |
% |
|
|
6.58 |
% |
|
|
12.90 |
% |
|
|
4.42 |
% |
Return on average assets |
|
1.53 |
% |
|
|
1.70 |
% |
|
|
1.34 |
% |
|
|
0.76 |
% |
|
|
0.81 |
% |
|
|
1.53 |
% |
|
|
0.56 |
% |
Adjusted return on average assets(1)(3)(4) |
|
1.59 |
% |
|
|
1.78 |
% |
|
|
1.37 |
% |
|
|
0.94 |
% |
|
|
0.81 |
% |
|
|
1.58 |
% |
|
|
0.57 |
% |
Non-interest income to total
|
|
23.61 |
% |
|
|
26.53 |
% |
|
|
21.75 |
% |
|
|
24.00 |
% |
|
|
29.35 |
% |
|
|
24.03 |
% |
|
|
21.82 |
% |
Pre-tax pre-provision return on
|
|
2.07 |
% |
|
|
2.16 |
% |
|
|
2.06 |
% |
|
|
1.66 |
% |
|
|
2.12 |
% |
|
|
2.10 |
% |
|
|
1.79 |
% |
Adjusted pre-tax pre-provision return
|
|
2.15 |
% |
|
|
2.28 |
% |
|
|
2.10 |
% |
|
|
1.91 |
% |
|
|
2.12 |
% |
|
|
2.18 |
% |
|
|
1.80 |
% |
Return on average tangible common
|
|
16.22 |
% |
|
|
18.87 |
% |
|
|
14.86 |
% |
|
|
8.61 |
% |
|
|
9.39 |
% |
|
|
16.66 |
% |
|
|
6.51 |
% |
Adjusted return on average tangible
|
|
16.86 |
% |
|
|
19.77 |
% |
|
|
15.15 |
% |
|
|
10.47 |
% |
|
|
9.40 |
% |
|
|
17.27 |
% |
|
|
6.63 |
% |
Non-interest-bearing deposits to
|
|
41.06 |
% |
|
|
41.03 |
% |
|
|
40.12 |
% |
|
|
37.09 |
% |
|
|
35.73 |
% |
|
|
41.06 |
% |
|
|
35.73 |
% |
Loans and leases held for sale and
|
|
90.29 |
% |
|
|
88.26 |
% |
|
|
89.23 |
% |
|
|
91.51 |
% |
|
|
91.96 |
% |
|
|
90.29 |
% |
|
|
91.96 |
% |
Deposits to total liabilities |
|
87.73 |
% |
|
|
88.97 |
% |
|
|
84.36 |
% |
|
|
85.08 |
% |
|
|
84.36 |
% |
|
|
87.73 |
% |
|
|
84.36 |
% |
Deposits per branch |
$ |
117,234 |
|
|
$ |
115,732 |
|
|
$ |
109,229 |
|
|
$ |
103,305 |
|
|
$ |
84,390 |
|
|
$ |
117,234 |
|
|
$ |
84,390 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Asset Quality Ratios |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
Non-performing loans and leases to
|
|
0.75 |
% |
|
|
0.79 |
% |
|
|
0.83 |
% |
|
|
0.95 |
% |
|
|
0.99 |
% |
|
|
0.75 |
% |
|
|
0.99 |
% |
ALLL to total loans and leases held for
|
|
1.31 |
% |
|
|
1.38 |
% |
|
|
1.47 |
% |
|
|
1.53 |
% |
|
|
1.40 |
% |
|
|
1.31 |
% |
|
|
1.40 |
% |
Net charge-offs to average total loans
|
|
0.13 |
% |
|
|
0.17 |
% |
|
|
0.47 |
% |
|
|
0.47 |
% |
|
|
0.53 |
% |
|
|
0.25 |
% |
|
|
0.53 |
% |
Acquisition accounting adjustments(4) |
$ |
6,327 |
|
|
$ |
9,393 |
|
|
$ |
10,424 |
|
|
$ |
13,389 |
|
|
$ |
17,133 |
|
|
$ |
6,327 |
|
|
$ |
17,133 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
Capital Ratios |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
Common equity to total assets |
|
12.14 |
% |
|
|
12.33 |
% |
|
|
11.61 |
% |
|
|
12.44 |
% |
|
|
12.07 |
% |
|
|
12.14 |
% |
|
|
12.07 |
% |
Tangible common equity to
|
|
9.89 |
% |
|
|
10.01 |
% |
|
|
9.31 |
% |
|
|
10.01 |
% |
|
|
9.64 |
% |
|
|
9.89 |
% |
|
|
9.64 |
% |
Leverage ratio |
|
11.21 |
% |
|
|
10.82 |
% |
|
|
10.93 |
% |
|
|
11.12 |
% |
|
|
10.93 |
% |
|
|
11.21 |
% |
|
|
10.93 |
% |
Common equity tier 1 capital ratio |
|
11.32 |
% |
|
|
11.97 |
% |
|
|
12.09 |
% |
|
|
12.20 |
% |
|
|
12.55 |
% |
|
|
11.32 |
% |
|
|
12.55 |
% |
Tier 1 capital ratio |
|
12.32 |
% |
|
|
13.05 |
% |
|
|
13.20 |
% |
|
|
13.36 |
% |
|
|
13.77 |
% |
|
|
12.32 |
% |
|
|
13.77 |
% |
Total capital ratio |
|
14.78 |
% |
|
|
15.74 |
% |
|
|
15.96 |
% |
|
|
16.18 |
% |
|
|
16.67 |
% |
|
|
14.78 |
% |
|
|
16.67 |
% |
(1) |
Represents a non-GAAP financial measure. See “Reconciliation of non-GAAP Financial Measures” for a reconciliation of our non-GAAP measures to the most directly comparable GAAP financial measure. |
(2) |
Represents non-interest expense less amortization of intangible assets divided by net interest income and non-interest income. |
(3) |
Calculation excludes impairment charges, merger-related expenses, and core systems conversion expense. |
(4) |
Represents the remaining net unaccreted discount as a result of applying the fair value adjustment at the time of the business combination on acquired loans. |
(5) |
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, |
||||||||||||||||||||||
|
|
2021 |
|
2020 |
||||||||||||||||||||
(dollars in thousands) |
|
Average
|
|
Interest
|
|
Average
|
|
Average
|
|
Interest
|
|
Average
|
||||||||||||
ASSETS |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Cash and cash equivalents |
|
$ |
40,088 |
|
|
$ |
19 |
|
|
|
0.19 |
% |
|
$ |
48,678 |
|
|
$ |
25 |
|
|
|
0.20 |
% |
Loans and leases(1) |
|
|
4,539,111 |
|
|
|
56,291 |
|
|
|
4.92 |
% |
|
|
4,360,203 |
|
|
|
51,036 |
|
|
|
4.66 |
% |
Taxable securities |
|
|
1,309,802 |
|
|
|
5,472 |
|
|
|
1.66 |
% |
|
|
1,364,516 |
|
|
|
6,341 |
|
|
|
1.85 |
% |
Tax-exempt securities(2) |
|
|
187,064 |
|
|
|
1,254 |
|
|
|
2.66 |
% |
|
|
143,157 |
|
|
|
1,054 |
|
|
|
2.93 |
% |
Total interest-earning assets |
|
$ |
6,076,065 |
|
|
$ |
63,036 |
|
|
|
4.12 |
% |
|
$ |
5,916,554 |
|
|
$ |
58,456 |
|
|
|
3.93 |
% |
Allowance for loan and lease losses |
|
|
(61,528 |
) |
|
|
|
|
|
|
|
|
(53,964 |
) |
|
|
|
|
|
|
||||
All other assets |
|
|
546,331 |
|
|
|
|
|
|
|
|
|
538,700 |
|
|
|
|
|
|
|
||||
TOTAL ASSETS |
|
$ |
6,560,868 |
|
|
|
|
|
|
|
|
$ |
6,401,290 |
|
|
|
|
|
|
|
||||
LIABILITIES AND STOCKHOLDERS’
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Deposits |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Interest checking |
|
$ |
653,543 |
|
|
$ |
228 |
|
|
|
0.14 |
% |
|
$ |
565,917 |
|
|
$ |
226 |
|
|
|
0.16 |
% |
Money market accounts |
|
|
1,031,009 |
|
|
|
280 |
|
|
|
0.11 |
% |
|
|
1,202,016 |
|
|
|
634 |
|
|
|
0.21 |
% |
Savings |
|
|
625,037 |
|
|
|
75 |
|
|
|
0.05 |
% |
|
|
535,396 |
|
|
|
64 |
|
|
|
0.05 |
% |
Time deposits |
|
|
709,805 |
|
|
|
403 |
|
|
|
0.23 |
% |
|
|
870,228 |
|
|
|
1,836 |
|
|
|
0.84 |
% |
Total interest-bearing deposits |
|
|
3,019,394 |
|
|
|
986 |
|
|
|
0.13 |
% |
|
|
3,173,557 |
|
|
|
2,760 |
|
|
|
0.35 |
% |
Other borrowings |
|
|
426,284 |
|
|
|
349 |
|
|
|
0.33 |
% |
|
|
538,237 |
|
|
|
465 |
|
|
|
0.34 |
% |
Subordinated notes and debentures |
|
|
110,195 |
|
|
|
1,592 |
|
|
|
5.73 |
% |
|
|
100,756 |
|
|
|
1,485 |
|
|
|
5.86 |
% |
Total borrowings |
|
|
536,479 |
|
|
|
1,941 |
|
|
|
1.44 |
% |
|
|
638,993 |
|
|
|
1,950 |
|
|
|
1.21 |
% |
Total interest-bearing liabilities |
|
$ |
3,555,873 |
|
|
$ |
2,927 |
|
|
|
0.33 |
% |
|
$ |
3,812,549 |
|
|
$ |
4,710 |
|
|
|
0.49 |
% |
Non-interest-bearing demand deposits |
|
|
2,106,189 |
|
|
|
|
|
|
|
|
|
1,742,787 |
|
|
|
|
|
|
|
||||
Other liabilities |
|
|
75,052 |
|
|
|
|
|
|
|
|
|
54,844 |
|
|
|
|
|
|
|
||||
Total stockholders’ equity |
|
|
823,754 |
|
|
|
|
|
|
|
|
|
791,111 |
|
|
|
|
|
|
|
||||
TOTAL LIABILITIES AND
|
|
$ |
6,560,868 |
|
|
|
|
|
|
|
|
$ |
6,401,290 |
|
|
|
|
|
|
|||||
Net interest spread(3) |
|
|
|
|
|
|
|
|
3.79 |
% |
|
|
|
|
|
|
|
3.44% |
|
|||||
Net interest income, fully
|
|
|
|
|
$ |
60,109 |
|
|
|
|
|
|
|
|
$ |
53,746 |
|
|
|
|
||||
Net interest margin, fully
|
|
|
|
|
|
|
|
|
3.92 |
% |
|
|
|
|
|
|
|
|
3.61 |
% |
||||
Tax-equivalent adjustment |
|
|
|
|
|
(264 |
) |
|
|
0.01 |
% |
|
|
|
|
|
(222 |
) |
|
|
0.01 |
% |
||
Net interest income |
|
|
|
|
$ |
59,845 |
|
|
|
|
|
|
|
|
$ |
53,524 |
|
|
|
|
||||
Net interest margin(4) |
|
|
|
|
|
|
|
|
3.91 |
% |
|
|
|
|
|
|
|
|
3.60 |
% |
||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Net loan accretion impact on margin |
|
|
|
|
$ |
1,638 |
|
|
|
0.11 |
% |
|
|
|
|
$ |
3,911 |
|
|
|
0.26 |
% |
||
(1) |
Loan and lease balances are net of deferred origination fees and costs and initial indirect costs. Non-accrual loans and leases are included in total loan and lease balances. |
(2) |
Interest income and rates include the effects of a tax equivalent adjustment to adjust tax exempt investment income on tax exempt investment securities to a fully taxable basis, 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 |
||||||||||||||||||||||||
YEAR-TO-DATE STATEMENT OF AVERAGE INTEREST-EARNING ASSETS AND AVERAGE INTEREST-BEARING LIABILITIES |
||||||||||||||||||||||||
(unaudited) |
||||||||||||||||||||||||
|
|
For the Nine Months Ended September 30, |
||||||||||||||||||||||
|
|
2021 |
|
2020 |
||||||||||||||||||||
(dollars in thousands) |
|
Average
|
|
Interest
|
|
Average
|
|
Average
|
|
Interest
|
|
Average
|
||||||||||||
ASSETS |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Cash and cash equivalents |
|
$ |
56,926 |
|
|
$ |
75 |
|
|
|
0.18 |
% |
|
$ |
48,861 |
|
|
$ |
207 |
|
|
|
0.57 |
% |
Loans and leases(1) |
|
|
4,487,909 |
|
|
|
164,423 |
|
|
|
4.90 |
% |
|
|
4,148,465 |
|
|
|
155,347 |
|
|
|
5.00 |
% |
Taxable securities |
|
|
1,405,390 |
|
|
|
16,798 |
|
|
|
1.60 |
% |
|
|
1,261,458 |
|
|
|
21,678 |
|
|
|
2.30 |
% |
Tax-exempt securities(2) |
|
|
184,826 |
|
|
|
3,729 |
|
|
|
2.70 |
% |
|
|
115,161 |
|
|
|
2,625 |
|
|
|
3.04 |
% |
Total interest-earning assets |
|
$ |
6,135,051 |
|
|
$ |
185,025 |
|
|
|
4.03 |
% |
|
$ |
5,573,945 |
|
|
$ |
179,857 |
|
|
|
4.31 |
% |
Allowance for loan and lease losses |
|
|
(64,768 |
) |
|
|
|
|
|
|
|
|
(43,584 |
) |
|
|
|
|
|
|
||||
All other assets |
|
|
552,660 |
|
|
|
|
|
|
|
|
|
522,321 |
|
|
|
|
|
|
|
||||
TOTAL ASSETS |
|
$ |
6,622,943 |
|
|
|
|
|
|
|
|
$ |
6,052,682 |
|
|
|
|
|
|
|
||||
LIABILITIES AND STOCKHOLDERS’
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Deposits |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Interest checking |
|
$ |
609,444 |
|
|
$ |
647 |
|
|
|
0.14 |
% |
|
$ |
432,785 |
|
|
$ |
651 |
|
|
|
0.20 |
% |
Money market accounts |
|
|
1,068,770 |
|
|
|
940 |
|
|
|
0.12 |
% |
|
|
1,126,588 |
|
|
|
3,794 |
|
|
|
0.45 |
% |
Savings |
|
|
603,366 |
|
|
|
214 |
|
|
|
0.05 |
% |
|
|
509,001 |
|
|
|
186 |
|
|
|
0.05 |
% |
Time deposits |
|
|
734,708 |
|
|
|
1,664 |
|
|
|
0.30 |
% |
|
|
986,419 |
|
|
|
10,179 |
|
|
|
1.38 |
% |
Total interest-bearing deposits |
|
|
3,016,288 |
|
|
|
3,465 |
|
|
|
0.15 |
% |
|
|
3,054,793 |
|
|
|
14,810 |
|
|
|
0.81 |
% |
Other borrowings |
|
|
572,018 |
|
|
|
1,333 |
|
|
|
0.31 |
% |
|
|
531,395 |
|
|
|
2,838 |
|
|
|
0.71 |
% |
Subordinated notes and debentures |
|
|
110,029 |
|
|
|
4,785 |
|
|
|
5.81 |
% |
|
|
59,591 |
|
|
|
2,699 |
|
|
|
6.05 |
% |
Total borrowings |
|
|
682,047 |
|
|
|
6,118 |
|
|
|
1.20 |
% |
|
|
590,986 |
|
|
|
5,537 |
|
|
|
1.25 |
% |
Total interest-bearing liabilities |
|
$ |
3,698,335 |
|
|
$ |
9,583 |
|
|
|
0.35 |
% |
|
$ |
3,645,779 |
|
|
$ |
20,347 |
|
|
|
0.75 |
% |
Non-interest-bearing demand deposits |
|
|
2,039,242 |
|
|
|
|
|
|
|
|
|
1,578,704 |
|
|
|
|
|
|
|
||||
Other liabilities |
|
|
71,737 |
|
|
|
|
|
|
|
|
|
50,677 |
|
|
|
|
|
|
|
||||
Total stockholders’ equity |
|
|
813,629 |
|
|
|
|
|
|
|
|
|
777,522 |
|
|
|
|
|
|
|
||||
TOTAL LIABILITIES AND
|
|
$ |
6,622,943 |
|
|
|
|
|
|
|
|
$ |
6,052,682 |
|
|
|
|
|
|
|
||||
Net interest spread(3) |
|
|
|
|
|
|
|
|
3.68 |
% |
|
|
|
|
|
|
|
|
3.56 |
% |
||||
Net interest income, fully
|
|
|
|
|
$ |
175,442 |
|
|
|
|
|
|
|
|
$ |
159,510 |
|
|
|
|
||||
Net interest margin, fully
|
|
|
|
|
|
|
|
|
3.82 |
% |
|
|
|
|
|
|
|
|
3.82 |
% |
||||
Tax-equivalent adjustment |
|
|
|
|
|
(783 |
) |
|
|
0.01 |
% |
|
|
|
|
|
(552 |
) |
|
|
0.01 |
% |
||
Net interest income |
|
|
|
|
$ |
174,659 |
|
|
|
|
|
|
|
|
$ |
158,958 |
|
|
|
|
||||
Net interest margin(4) |
|
|
|
|
|
|
|
|
3.81 |
% |
|
|
|
|
|
|
|
|
3.81 |
% |
||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Net loan accretion impact on margin |
|
|
|
|
$ |
5,001 |
|
|
|
0.11 |
% |
|
|
|
|
$ |
10,754 |
|
|
|
0.26 |
% |
||
(1) |
Loan and lease balances are net of deferred origination fees and costs and initial indirect costs. Non-accrual loans and leases are included in total loan and lease balances. |
(2) |
Interest income and rates include the effects of a tax equivalent adjustment to adjust tax exempt investment income on tax exempt investment securities to a fully taxable basis, 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
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, non-interest income to total revenues, adjusted return on average stockholders’ equity, adjusted return on average assets, pre-tax pre-provision return on average assets, adjusted pre-tax pre-provision return on average assets, tangible book value per common share, tangible common equity to tangible assets, return on average tangible common stockholders' equity, and adjusted return on average tangible common stockholders' equity. Management believes that these non-GAAP financial measures provide useful information to management and investors that is supplementary to the Company’s financial condition, results of operations and cash flows computed in accordance with GAAP; however, management acknowledges that our non-GAAP financial measures have a number of limitations. As such, these disclosures should not be viewed as a substitute for results determined in accordance with GAAP financial measures that we and other companies use. Management also uses these measures for peer comparison. See below in the financial schedules included in this press release for a reconciliation of the non-GAAP financial measures to the comparable GAAP financial measures. Additionally, please refer to the Company’s Annual Report on Form 10-K for the detailed definitions of these non-GAAP financial measures.
|
|
As of or For the Three Months Ended |
|
As of or For the Nine Months Ended |
||||||||||||||||||||||||
(dollars in thousands, except per share data) |
|
September 30,
|
|
June 30,
|
|
March 31,
|
|
December 31,
|
|
September 30,
|
|
September 30,
|
|
September 30,
|
||||||||||||||
Net income and earnings per share excluding significant items |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
Reported Net Income |
|
$ |
25,306 |
|
|
$ |
28,492 |
|
|
$ |
21,798 |
|
|
$ |
12,291 |
|
|
$ |
13,071 |
|
|
$ |
75,596 |
|
|
$ |
25,176 |
|
Significant items: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
Impairment charges on assets held for sale |
|
|
1,435 |
|
|
|
1,942 |
|
|
|
604 |
|
|
|
4,022 |
|
|
|
32 |
|
|
|
3,981 |
|
|
|
747 |
|
Tax benefit |
|
|
(391 |
) |
|
|
(529 |
) |
|
|
(165 |
) |
|
|
(1,120 |
) |
|
|
(9 |
) |
|
|
(1,085 |
) |
|
|
(208 |
) |
Adjusted Net Income |
|
$ |
26,350 |
|
|
$ |
29,905 |
|
|
$ |
22,237 |
|
|
$ |
15,193 |
|
|
$ |
13,094 |
|
|
$ |
78,492 |
|
|
$ |
25,715 |
|
Reported Diluted Earnings per Share |
|
$ |
0.66 |
|
|
$ |
0.73 |
|
|
$ |
0.56 |
|
|
$ |
0.31 |
|
|
$ |
0.34 |
|
|
$ |
1.95 |
|
|
$ |
0.64 |
|
Significant items: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
Impairment charges on assets held for sale |
|
|
0.04 |
|
|
|
0.05 |
|
|
|
0.02 |
|
|
|
0.10 |
|
|
|
— |
|
|
|
0.10 |
|
|
|
0.02 |
|
Tax benefit |
|
|
(0.01 |
) |
|
|
(0.01 |
) |
|
|
(0.01 |
) |
|
|
(0.03 |
) |
|
|
— |
|
|
|
(0.03 |
) |
|
|
(0.01 |
) |
Adjusted Diluted Earnings per Share |
|
$ |
0.69 |
|
|
$ |
0.77 |
|
|
$ |
0.57 |
|
|
$ |
0.38 |
|
|
$ |
0.34 |
|
|
$ |
2.02 |
|
|
$ |
0.65 |
|
BYLINE BANCORP, INC. AND SUBSIDIARIES |
||||||||||||||||||||||||||||
RECONCILIATION OF NON-GAAP FINANCIAL MEASURES (continued) (unaudited) |
||||||||||||||||||||||||||||
|
|
As of or For the Three Months Ended |
|
As of or For the Nine Months Ended |
||||||||||||||||||||||||
(dollars in thousands, except per share data, ratios annualized, where applicable) |
|
September 30,
|
|
June 30,
|
|
March 31,
|
|
December 31,
|
|
September 30,
|
|
September 30,
|
|
September 30,
|
||||||||||||||
Adjusted non-interest expense: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
Non-interest expense |
|
$ |
44,180 |
|
|
$ |
42,981 |
|
|
$ |
38,842 |
|
|
$ |
47,021 |
|
|
$ |
41,687 |
|
|
$ |
126,003 |
|
|
$ |
122,401 |
|
Less: Significant items |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
Impairment charges on assets held for sale |
|
|
1,435 |
|
|
|
1,942 |
|
|
|
604 |
|
|
|
4,022 |
|
|
|
32 |
|
|
|
3,981 |
|
|
|
747 |
|
Adjusted non-interest expense |
|
$ |
42,745 |
|
|
$ |
41,039 |
|
|
$ |
38,238 |
|
|
$ |
42,999 |
|
|
$ |
41,655 |
|
|
$ |
122,022 |
|
|
$ |
121,654 |
|
Adjusted non-interest expense excluding
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
Adjusted non-interest expense |
|
$ |
42,745 |
|
|
$ |
41,039 |
|
|
$ |
38,238 |
|
|
$ |
42,999 |
|
|
$ |
41,655 |
|
|
$ |
122,022 |
|
|
$ |
121,654 |
|
Less: Amortization of intangible assets |
|
|
1,738 |
|
|
|
1,848 |
|
|
|
1,749 |
|
|
|
1,892 |
|
|
|
1,947 |
|
|
|
5,335 |
|
|
|
5,732 |
|
Adjusted non-interest expense excluding
|
|
$ |
41,007 |
|
|
$ |
39,191 |
|
|
$ |
36,489 |
|
|
$ |
41,107 |
|
|
$ |
39,708 |
|
|
$ |
116,687 |
|
|
$ |
115,922 |
|
Pre-tax pre-provision net income: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
Pre-tax income |
|
$ |
33,808 |
|
|
$ |
38,164 |
|
|
$ |
29,173 |
|
|
$ |
16,453 |
|
|
$ |
18,331 |
|
|
$ |
101,145 |
|
|
$ |
35,214 |
|
Add: Provision/(recapture) for loan
|
|
|
352 |
|
|
|
(1,969 |
) |
|
|
4,367 |
|
|
|
10,236 |
|
|
|
15,740 |
|
|
|
2,750 |
|
|
|
45,713 |
|
Pre-tax pre-provision net income |
|
$ |
34,160 |
|
|
$ |
36,195 |
|
|
$ |
33,540 |
|
|
$ |
26,689 |
|
|
$ |
34,071 |
|
|
$ |
103,895 |
|
|
$ |
80,927 |
|
Adjusted pre-tax pre-provision net income: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
Pre-tax pre-provision net income |
|
$ |
34,160 |
|
|
$ |
36,195 |
|
|
$ |
33,540 |
|
|
$ |
26,689 |
|
|
$ |
34,071 |
|
|
$ |
103,895 |
|
|
$ |
80,927 |
|
Impairment charges on assets held for sale |
|
|
1,435 |
|
|
|
1,942 |
|
|
|
604 |
|
|
|
4,022 |
|
|
|
32 |
|
|
|
3,981 |
|
|
|
747 |
|
Adjusted pre-tax pre-provision net income |
|
$ |
35,595 |
|
|
$ |
38,137 |
|
|
$ |
34,144 |
|
|
$ |
30,711 |
|
|
$ |
34,103 |
|
|
$ |
107,876 |
|
|
$ |
81,674 |
|
Tax equivalent net interest income |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
Net interest income |
|
$ |
59,845 |
|
|
$ |
58,174 |
|
|
$ |
56,640 |
|
|
$ |
56,020 |
|
|
$ |
53,524 |
|
|
$ |
174,659 |
|
|
$ |
158,958 |
|
Add: Tax-equivalent adjustment |
|
|
264 |
|
|
|
269 |
|
|
|
250 |
|
|
|
240 |
|
|
|
222 |
|
|
|
783 |
|
|
|
552 |
|
Net interest income, fully taxable equivalent |
|
$ |
60,109 |
|
|
$ |
58,443 |
|
|
$ |
56,890 |
|
|
$ |
56,260 |
|
|
$ |
53,746 |
|
|
$ |
175,442 |
|
|
$ |
159,510 |
|
Total revenues: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
Net interest income |
|
$ |
59,845 |
|
|
$ |
58,174 |
|
|
$ |
56,640 |
|
|
$ |
56,020 |
|
|
$ |
53,524 |
|
|
$ |
174,659 |
|
|
$ |
158,958 |
|
Add: Non-interest income |
|
|
18,495 |
|
|
|
21,002 |
|
|
|
15,742 |
|
|
|
17,690 |
|
|
|
22,234 |
|
|
|
55,239 |
|
|
|
44,370 |
|
Total revenues |
|
$ |
78,340 |
|
|
$ |
79,176 |
|
|
$ |
72,382 |
|
|
$ |
73,710 |
|
|
$ |
75,758 |
|
|
$ |
229,898 |
|
|
$ |
203,328 |
|
Tangible common stockholders' equity: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
Total stockholders' equity |
|
$ |
824,418 |
|
|
$ |
817,073 |
|
|
$ |
793,795 |
|
|
$ |
805,464 |
|
|
$ |
794,696 |
|
|
$ |
824,418 |
|
|
$ |
794,696 |
|
Less: Preferred stock |
|
|
10,438 |
|
|
|
10,438 |
|
|
|
10,438 |
|
|
|
10,438 |
|
|
|
10,438 |
|
|
|
10,438 |
|
|
|
10,438 |
|
Less: Goodwill and other intangibles |
|
|
167,296 |
|
|
|
169,034 |
|
|
|
170,882 |
|
|
|
172,631 |
|
|
|
174,523 |
|
|
|
167,296 |
|
|
|
174,523 |
|
Tangible common stockholders' equity |
|
$ |
646,684 |
|
|
$ |
637,601 |
|
|
$ |
612,475 |
|
|
$ |
622,395 |
|
|
$ |
609,735 |
|
|
$ |
646,684 |
|
|
$ |
609,735 |
|
Tangible assets: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
Total assets |
|
$ |
6,704,451 |
|
|
$ |
6,540,602 |
|
|
$ |
6,750,125 |
|
|
$ |
6,390,652 |
|
|
$ |
6,496,513 |
|
|
$ |
6,704,451 |
|
|
$ |
6,496,513 |
|
Less: Goodwill and other intangibles |
|
|
167,296 |
|
|
|
169,034 |
|
|
|
170,882 |
|
|
|
172,631 |
|
|
|
174,523 |
|
|
|
167,296 |
|
|
|
174,523 |
|
Tangible assets |
|
$ |
6,537,155 |
|
|
$ |
6,371,568 |
|
|
$ |
6,579,243 |
|
|
$ |
6,218,021 |
|
|
$ |
6,321,990 |
|
|
$ |
6,537,155 |
|
|
$ |
6,321,990 |
|
Average tangible common stockholders'
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
Average total stockholders' equity |
|
$ |
823,754 |
|
|
$ |
810,490 |
|
|
$ |
806,452 |
|
|
$ |
805,593 |
|
|
$ |
791,111 |
|
|
$ |
813,629 |
|
|
$ |
777,522 |
|
Less: Average preferred stock |
|
|
10,438 |
|
|
|
10,438 |
|
|
|
10,438 |
|
|
|
10,438 |
|
|
|
10,438 |
|
|
|
10,438 |
|
|
|
10,438 |
|
Less: Average goodwill and other
|
|
|
168,140 |
|
|
|
169,906 |
|
|
|
171,795 |
|
|
|
173,536 |
|
|
|
175,443 |
|
|
|
169,934 |
|
|
|
177,426 |
|
Average tangible common stockholders'
|
|
$ |
645,176 |
|
|
$ |
630,146 |
|
|
$ |
624,219 |
|
|
$ |
621,619 |
|
|
$ |
605,230 |
|
|
$ |
633,257 |
|
|
$ |
589,658 |
|
Average tangible assets: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
Average total assets |
|
$ |
6,560,868 |
|
|
$ |
6,720,492 |
|
|
$ |
6,587,765 |
|
|
$ |
6,400,621 |
|
|
$ |
6,401,290 |
|
|
$ |
6,622,943 |
|
|
$ |
6,052,682 |
|
Less: Average goodwill and other
|
|
|
168,140 |
|
|
|
169,906 |
|
|
|
171,795 |
|
|
|
173,536 |
|
|
|
175,443 |
|
|
|
169,934 |
|
|
|
177,426 |
|
Average tangible assets |
|
$ |
6,392,728 |
|
|
$ |
6,550,586 |
|
|
$ |
6,415,970 |
|
|
$ |
6,227,085 |
|
|
$ |
6,225,847 |
|
|
$ |
6,453,009 |
|
|
$ |
5,875,256 |
|
Tangible net income available to common
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
Net income available to common
|
|
$ |
25,110 |
|
|
$ |
28,297 |
|
|
$ |
21,602 |
|
|
$ |
12,095 |
|
|
$ |
12,875 |
|
|
$ |
75,009 |
|
|
$ |
24,589 |
|
Add: After-tax intangible asset amortization |
|
|
1,265 |
|
|
|
1,344 |
|
|
|
1,272 |
|
|
|
1,365 |
|
|
|
1,405 |
|
|
|
3,881 |
|
|
|
4,136 |
|
Tangible net income available to common
|
|
$ |
26,375 |
|
|
$ |
29,641 |
|
|
$ |
22,874 |
|
|
$ |
13,460 |
|
|
$ |
14,280 |
|
|
$ |
78,890 |
|
|
$ |
28,725 |
|
Adjusted tangible net income available
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
Tangible net income available to common
|
|
$ |
26,375 |
|
|
$ |
29,641 |
|
|
$ |
22,874 |
|
|
$ |
13,460 |
|
|
$ |
14,280 |
|
|
$ |
78,890 |
|
|
$ |
28,725 |
|
Impairment charges on assets held for sale |
|
|
1,435 |
|
|
|
1,942 |
|
|
|
604 |
|
|
|
4,022 |
|
|
|
32 |
|
|
|
3,981 |
|
|
|
747 |
|
Tax benefit on significant items |
|
|
(391 |
) |
|
|
(529 |
) |
|
|
(165 |
) |
|
|
(1,120 |
) |
|
|
(9 |
) |
|
|
(1,085 |
) |
|
|
(208 |
) |
Adjusted tangible net income available to
|
|
$ |
27,419 |
|
|
$ |
31,054 |
|
|
$ |
23,313 |
|
|
$ |
16,362 |
|
|
$ |
14,303 |
|
|
$ |
81,786 |
|
|
$ |
29,264 |
|
BYLINE BANCORP, INC. AND SUBSIDIARIES |
||||||||||||||||||||||||||||
RECONCILIATION OF NON-GAAP FINANCIAL MEASURES (continued) (unaudited) |
||||||||||||||||||||||||||||
|
|
As of or For the Three Months Ended |
|
As of or For the Nine Months Ended |
||||||||||||||||||||||||
(dollars in thousands, except share and per share data, ratios annualized, where applicable) |
|
September 30,
|
|
June 30,
|
|
March 31,
|
|
December 31,
|
|
September 30,
|
|
September 30,
|
|
September 30,
|
||||||||||||||
Pre-tax pre-provision return on average assets: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
Pre-tax pre-provision net income |
|
$ |
34,160 |
|
|
$ |
36,195 |
|
|
$ |
33,540 |
|
|
$ |
26,689 |
|
|
$ |
34,071 |
|
|
$ |
103,895 |
|
|
$ |
80,927 |
|
Average total assets |
|
|
6,560,868 |
|
|
|
6,720,492 |
|
|
|
6,587,765 |
|
|
|
6,400,621 |
|
|
|
6,401,290 |
|
|
|
6,622,943 |
|
|
|
6,052,682 |
|
Pre-tax pre-provision return on average assets |
|
|
2.07 |
% |
|
|
2.16 |
% |
|
|
2.06 |
% |
|
|
1.66 |
% |
|
|
2.12 |
% |
|
|
2.10 |
% |
|
|
1.79 |
% |
Adjusted pre-tax pre-provision return on average
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
Adjusted pre-tax pre-provision net income |
|
$ |
35,595 |
|
|
$ |
38,137 |
|
|
$ |
34,144 |
|
|
$ |
30,711 |
|
|
$ |
34,103 |
|
|
$ |
107,876 |
|
|
$ |
81,674 |
|
Average total assets |
|
|
6,560,868 |
|
|
|
6,720,492 |
|
|
|
6,587,765 |
|
|
|
6,400,621 |
|
|
|
6,401,290 |
|
|
|
6,622,943 |
|
|
|
6,052,682 |
|
Adjusted pre-tax pre-provision return on average
|
|
|
2.15 |
% |
|
|
2.28 |
% |
|
|
2.10 |
% |
|
|
1.91 |
% |
|
|
2.12 |
% |
|
|
2.18 |
% |
|
|
1.80 |
% |
Net interest margin, fully taxable equivalent |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
Net interest income, fully taxable equivalent |
|
$ |
60,109 |
|
|
$ |
58,443 |
|
|
$ |
56,890 |
|
|
$ |
56,260 |
|
|
$ |
53,746 |
|
|
$ |
175,442 |
|
|
$ |
159,510 |
|
Total average interest-earning assets |
|
|
6,076,065 |
|
|
|
6,231,616 |
|
|
|
5,913,746 |
|
|
|
5,916,554 |
|
|
|
5,916,554 |
|
|
|
6,135,051 |
|
|
|
5,573,945 |
|
Net interest margin, fully taxable equivalent |
|
|
3.92 |
% |
|
|
3.76 |
% |
|
|
3.78 |
% |
|
|
3.78 |
% |
|
|
3.61 |
% |
|
|
3.82 |
% |
|
|
3.82 |
% |
Non-interest income to total revenues: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
Non-interest income |
|
$ |
18,495 |
|
|
$ |
21,002 |
|
|
$ |
15,742 |
|
|
$ |
17,690 |
|
|
$ |
22,234 |
|
|
$ |
55,239 |
|
|
$ |
44,370 |
|
Total revenues |
|
|
78,340 |
|
|
|
79,176 |
|
|
|
72,382 |
|
|
|
73,710 |
|
|
|
75,758 |
|
|
|
229,898 |
|
|
|
203,328 |
|
Non-interest income to total revenues |
|
|
23.61 |
% |
|
|
26.53 |
% |
|
|
21.75 |
% |
|
|
24.00 |
% |
|
|
29.35 |
% |
|
|
24.03 |
% |
|
|
21.82 |
% |
Adjusted non-interest expense to average assets: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
Adjusted non-interest expense |
|
$ |
42,745 |
|
|
$ |
41,039 |
|
|
$ |
38,238 |
|
|
$ |
42,999 |
|
|
$ |
41,655 |
|
|
$ |
122,022 |
|
|
$ |
121,654 |
|
Average total assets |
|
|
6,560,868 |
|
|
|
6,720,492 |
|
|
|
6,587,765 |
|
|
|
6,400,621 |
|
|
|
6,401,290 |
|
|
|
6,622,943 |
|
|
|
6,052,682 |
|
Adjusted non-interest expense to average assets |
|
|
2.58 |
% |
|
|
2.45 |
% |
|
|
2.35 |
% |
|
|
2.67 |
% |
|
|
2.59 |
% |
|
|
2.46 |
% |
|
|
2.68 |
% |
Adjusted efficiency ratio: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
Adjusted non-interest expense excluding
|
|
$ |
41,007 |
|
|
$ |
39,191 |
|
|
$ |
36,489 |
|
|
$ |
41,107 |
|
|
$ |
39,708 |
|
|
$ |
116,687 |
|
|
$ |
115,922 |
|
Total revenues |
|
|
78,340 |
|
|
|
79,176 |
|
|
|
72,382 |
|
|
|
73,710 |
|
|
|
75,758 |
|
|
|
229,898 |
|
|
|
203,328 |
|
Adjusted efficiency ratio |
|
|
52.35 |
% |
|
|
49.50 |
% |
|
|
50.41 |
% |
|
|
55.77 |
% |
|
|
52.42 |
% |
|
|
50.76 |
% |
|
|
57.01 |
% |
Adjusted return on average assets: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
Adjusted net income |
|
$ |
26,350 |
|
|
$ |
29,905 |
|
|
$ |
22,237 |
|
|
$ |
15,193 |
|
|
$ |
13,094 |
|
|
$ |
78,492 |
|
|
$ |
25,715 |
|
Average total assets |
|
|
6,560,868 |
|
|
|
6,720,492 |
|
|
|
6,587,765 |
|
|
|
6,400,621 |
|
|
|
6,401,290 |
|
|
|
6,622,943 |
|
|
|
6,052,682 |
|
Adjusted return on average assets |
|
|
1.59 |
% |
|
|
1.78 |
% |
|
|
1.37 |
% |
|
|
0.94 |
% |
|
|
0.81 |
% |
|
|
1.58 |
% |
|
|
0.57 |
% |
Adjusted return on average stockholders' equity: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
Adjusted net income |
|
$ |
26,350 |
|
|
$ |
29,905 |
|
|
$ |
22,237 |
|
|
$ |
15,193 |
|
|
$ |
13,094 |
|
|
$ |
78,492 |
|
|
$ |
25,715 |
|
Average stockholders' equity |
|
|
823,754 |
|
|
|
810,490 |
|
|
|
806,452 |
|
|
|
805,593 |
|
|
|
791,111 |
|
|
|
813,629 |
|
|
|
777,522 |
|
Adjusted return on average stockholders' equity |
|
|
12.69 |
% |
|
|
14.80 |
% |
|
|
11.18 |
% |
|
|
7.50 |
% |
|
|
6.58 |
% |
|
|
12.90 |
% |
|
|
4.42 |
% |
Tangible common equity to tangible assets: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
Tangible common equity |
|
$ |
646,684 |
|
|
$ |
637,601 |
|
|
$ |
612,475 |
|
|
$ |
622,395 |
|
|
$ |
609,735 |
|
|
$ |
646,684 |
|
|
$ |
609,735 |
|
Tangible assets |
|
|
6,537,155 |
|
|
|
6,371,568 |
|
|
|
6,579,243 |
|
|
|
6,218,021 |
|
|
|
6,321,990 |
|
|
|
6,537,155 |
|
|
|
6,321,990 |
|
Tangible common equity to tangible assets |
|
|
9.89 |
% |
|
|
10.01 |
% |
|
|
9.31 |
% |
|
|
10.01 |
% |
|
|
9.64 |
% |
|
|
9.89 |
% |
|
|
9.64 |
% |
Return on average tangible common stockholders'
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
Tangible net income available to common
|
|
$ |
26,375 |
|
|
$ |
29,641 |
|
|
$ |
22,874 |
|
|
$ |
13,460 |
|
|
$ |
14,280 |
|
|
$ |
78,890 |
|
|
$ |
28,725 |
|
Average tangible common stockholders' equity |
|
|
645,176 |
|
|
|
630,146 |
|
|
|
624,219 |
|
|
|
621,619 |
|
|
|
605,230 |
|
|
|
633,257 |
|
|
|
589,658 |
|
Return on average tangible common
|
|
|
16.22 |
% |
|
|
18.87 |
% |
|
|
14.86 |
% |
|
|
8.61 |
% |
|
|
9.39 |
% |
|
|
16.66 |
% |
|
|
6.51 |
% |
Adjusted return on average tangible common
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
Adjusted tangible net income available to
|
|
$ |
27,419 |
|
|
$ |
31,054 |
|
|
$ |
23,313 |
|
|
$ |
16,362 |
|
|
$ |
14,303 |
|
|
$ |
81,786 |
|
|
$ |
29,264 |
|
Average tangible common stockholders' equity |
|
|
645,176 |
|
|
|
630,146 |
|
|
|
624,219 |
|
|
|
621,619 |
|
|
|
605,230 |
|
|
|
633,257 |
|
|
|
589,658 |
|
Adjusted return on average tangible common
|
|
|
16.86 |
% |
|
|
19.77 |
% |
|
|
15.15 |
% |
|
|
10.47 |
% |
|
|
9.40 |
% |
|
|
17.27 |
% |
|
|
6.63 |
% |
Tangible book value per share: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
Tangible common equity |
|
$ |
646,684 |
|
|
$ |
637,601 |
|
|
$ |
612,475 |
|
|
$ |
622,395 |
|
|
$ |
609,735 |
|
|
$ |
646,684 |
|
|
$ |
609,735 |
|
Common shares outstanding |
|
|
37,690,087 |
|
|
|
38,094,972 |
|
|
|
38,641,851 |
|
|
|
38,618,054 |
|
|
|
38,568,916 |
|
|
|
37,690,087 |
|
|
|
38,568,916 |
|
Tangible book value per share |
|
$ |
17.16 |
|
|
$ |
16.74 |
|
|
$ |
15.85 |
|
|
$ |
16.12 |
|
|
$ |
15.81 |
|
|
$ |
17.16 |
|
|
$ |
15.81 |
|
View source version on businesswire.com: https://www.businesswire.com/news/home/20211028006188/en/
Contacts
Investors:
Brooks Rennie
Investor Relations Manager
312-660-5805
brennie@bylinebank.com
Media:
Erin O’Neill
Director of Marketing
773-475-2901
eoneill@bylinebank.com
