Select Second Quarter 2023 Financial
Highlights
- Net income of $26.1 million, or $0.70 per diluted
share
- Pre-tax pre-provision return on average assets of
2.23%1
- Return on average assets of 1.41%; Return on average
tangible common equity of 16.78%1
- Net interest margin of 4.32%
- Efficiency ratio of 52.92%
- Total loans and leases of $5.6 billion, quarterly increase
of $55.2 million
- Total deposits of $5.9 billion, quarterly increase of $104.4
million
- Tangible Common Equity to Tangible Assets of 8.87%1
- Common Equity Tier 1 to Risk Weighted Assets of
10.58%
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 $26.1 million, or $0.70 per diluted
share, for the second quarter of 2023 compared with net income of
$23.9 million, or $0.64 per diluted share, for the first quarter of
2023, and net income of $21.8 million2, or $0.58 per diluted share,
for the second quarter 2022.
Roberto R. Herencia, Executive Chairman and Chief Executive
Officer of Byline Bancorp, Inc., commented, “We reported solid
results for the second quarter and continued to execute our time
tested strategy well. Notwithstanding the challenging operating
environment, our business units continued to perform well and we
have good momentum heading into the second half of the year.”
Alberto J. Paracchini, President of Byline Bancorp, Inc. added,
“We delivered record earnings, strong profitability, balanced
deposit and loan growth and solid credit quality. Our strong
capital and liquidity levels position us well to continue to
prudently grow our franchise.”
Board Declares Cash Dividend of $0.09
per Share
On July 25, 2023, the Company's Board of Directors declared a
cash dividend of $0.09 per share, payable on August 22, 2023, to
stockholders of record of the Company's common stock as of August
8, 2023.
Inland Acquisition
On July 1, 2023, Byline completed its acquisition of Inland
Bancorp, Inc. ("Inland Bancorp") to solidify Byline's position as
Chicago's largest community bank. The transaction brings Byline’s
combined total assets to approximately $8.8 billion, $6.4 billion
in loans and $6.9 billion in deposits, with 47 branches across the
greater Chicago metropolitan area, based on information as of June
30, 2023.
(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.
(2)
Recast due to the adoption of ASU 2016-13
Financial Instruments - Credit Losses on December 31, 2022, which
was applied retrospectively to January 1, 2022. Results for periods
beginning after September 30, 2022 are presented under the new
standard, while prior quarters previously reported are recast as if
the new standard had been applied since January 1, 2022. Refer to
our Annual Report on Form 10-K for the year ended December 31, 2022
for additional information on the adoption of the standard.
STATEMENTS OF OPERATIONS
Net Interest Income
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
June 30, 2023
March 31, 2023
Recast June 30, 2022
(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
$
135,003
$
1,041
3.09
%
$
97,578
$
442
1.84
%
$
66,034
$
74
0.45
%
Loans and leases(1)
5,535,593
99,134
7.18
%
5,484,372
92,343
6.83
%
5,007,615
59,919
4.80
%
Taxable securities
1,250,780
6,324
2.03
%
1,275,377
6,431
2.04
%
1,331,136
5,792
1.75
%
Tax-exempt securities(2)
151,205
980
2.60
%
151,817
994
2.65
%
168,567
1,131
2.69
%
Total interest-earning assets
$
7,072,581
$
107,479
6.10
%
$
7,009,144
$
100,210
5.80
%
$
6,573,352
$
66,916
4.08
%
Allowance for credit losses - loans and
leases
(92,804
)
(84,321
)
(72,521
)
All other assets
424,122
420,328
465,733
TOTAL ASSETS
$
7,403,899
$
7,345,151
$
6,966,564
LIABILITIES AND STOCKHOLDERS’ EQUITY
Deposits
Interest checking
$
541,036
$
2,175
1.61
%
$
606,008
$
2,494
1.67
%
$
615,831
$
415
0.27
%
Money market accounts
1,534,463
10,799
2.82
%
1,465,677
7,728
2.14
%
1,307,320
1,194
0.37
%
Savings
575,254
220
0.15
%
613,590
227
0.15
%
664,954
83
0.05
%
Time deposits
1,328,679
11,529
3.48
%
966,409
5,849
2.45
%
627,199
436
0.28
%
Total interest-bearing deposits
3,979,432
24,723
2.49
%
3,651,684
16,298
1.81
%
3,215,304
2,128
0.27
%
Other borrowings
509,419
4,241
3.34
%
573,433
5,852
4.14
%
497,082
1,083
0.87
%
Federal funds purchased
—
—
0.00
%
2,778
36
5.30
%
2,527
14
2.32
%
Subordinated notes and debentures
111,255
2,142
7.72
%
111,101
2,098
7.66
%
110,649
1,694
6.14
%
Total borrowings
620,674
6,383
4.12
%
687,312
7,986
4.71
%
610,258
2,791
1.83
%
Total interest-bearing liabilities
$
4,600,106
$
31,106
2.71
%
$
4,338,996
$
24,284
2.27
%
$
3,825,562
$
4,919
0.52
%
Non-interest-bearing demand deposits
1,848,538
2,076,613
2,265,426
Other liabilities
148,983
145,253
105,918
Total stockholders’ equity
806,272
784,289
769,658
TOTAL LIABILITIES AND STOCKHOLDERS’
EQUITY
$
7,403,899
$
7,345,151
$
6,966,564
Net interest spread(3)
3.39
%
3.53
%
3.56
%
Net interest income, fully taxable
equivalent
$
76,373
$
75,926
$
61,997
Net interest margin, fully taxable
equivalent(2)(4)
4.33
%
4.39
%
3.78
%
Less: Tax-equivalent adjustment
207
0.01
%
208
0.01
%
237
0.01
%
Net interest income
$
76,166
$
75,718
$
61,760
Net interest margin(4)
4.32
%
4.38
%
3.77
%
Net loan accretion impact on margin
$
611
0.03
%
$
729
0.04
%
$
1,628
0.10
%
(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, using 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.
The following table presents net interest income for the periods
indicated:
June 30, 2023
Three Months Ended
Change from
Recast
June 30,
March 31,
June 30,
March 31,
June 30,
(dollars in thousands)
2023
2023
2022
2023
2022
INTEREST AND DIVIDEND INCOME
Interest and fees on loans and leases
$
99,134
$
92,343
$
59,919
7.4
%
65.4
%
Interest on securities
6,559
6,600
6,264
(0.6
)%
4.7
%
Other interest and dividend income
1,579
1,059
496
49.1
%
218.7
%
Total interest and dividend income
107,272
100,002
66,679
7.3
%
60.9
%
INTEREST EXPENSE
Deposits
24,723
16,298
2,128
51.7
%
NM
Other borrowings
4,241
5,888
1,097
(28.0
)%
286.4
%
Subordinated notes and debentures
2,142
2,098
1,694
2.1
%
26.4
%
Total interest expense
31,106
24,284
4,919
28.1
%
532.3
%
Net interest income
$
76,166
$
75,718
$
61,760
0.6
%
23.3
%
Net interest income for the second quarter of 2023 was $76.2
million, an increase of $448,000, or 0.6%, from the first quarter
of 2023.
The increase in net interest income was primarily due to:
- An increase of $6.8 million in interest income and fees on
loans and leases due to higher yields and growth in the loan and
lease portfolio; and
- A decrease of $1.6 million in other borrowings interest expense
mainly due to lower average balances of FHLB borrowings.
Partially offset by:
- An increase of $8.4 million in deposit interest expense mainly
due to growth in time deposits and higher rates paid on money
market accounts and time deposits.
Tax-equivalent net interest margin for the second quarter of
2023 was 4.33%, a decrease of six basis points compared to the
first quarter of 2023. Total net loan accretion income impact on
margin contributed three basis points to the net interest margin
for the second quarter of 2023 compared to four basis points for
the first quarter of 2023.
The average cost of total deposits was 1.70% for the second
quarter of 2023, an increase of 55 basis points compared to the
first quarter of 2023, as a result of increased cost of
interest-bearing deposits and a decrease in average non-interest
bearing deposits. Average non-interest-bearing demand deposits were
31.7% of average total deposits for the second quarter of 2023
compared to 36.3% during the first quarter of 2023.
Provision for Credit Losses
The provision for credit losses was $5.8 million for the second
quarter of 2023, a decrease of $4.0 million compared to $9.8
million for the first quarter of 2023, which was mainly
attributable to lower impairments for individually assessed loans
and lower non-performing loans. The provision for credit losses
during the quarter is comprised of a provision for loan and lease
losses of $6.5 million driven by individually assessed loan
impairments and lease growth, partially offset by a recapture for
unfunded commitments of $677,000.
Non-interest Income
The following table presents the components of non-interest
income for the periods indicated:
June 30, 2023
Three Months Ended
Change from
Recast
June 30,
March 31,
June 30,
March 31,
June 30,
(dollars in thousands)
2023
2023
2022
2023
2022
NON-INTEREST INCOME
Fees and service charges on deposits
$
2,233
$
2,120
$
2,059
5.3
%
8.5
%
Loan servicing revenue
3,377
3,380
3,384
(0.1
)%
(0.2
)%
Loan servicing asset revaluation
(865
)
656
(4,636
)
NM
(81.3
)%
ATM and interchange fees
1,112
1,063
1,131
4.6
%
(1.7
)%
Net realized gains (losses) on securities
available-for-sale
—
—
52
0.0
%
(100.0
)%
Change in fair value of equity securities,
net
193
350
(697
)
(45.0
)%
NM
Net gains on sales of loans
5,704
5,148
9,983
10.8
%
(42.9
)%
Wealth management and trust income
1,039
924
900
12.5
%
15.5
%
Other non-interest income
1,498
1,504
2,097
(0.3
)%
(28.5
)%
Total non-interest income
$
14,291
$
15,145
$
14,273
(5.6
)%
0.1
%
Non-interest income for the second quarter of 2023 was $14.3
million, a decrease of $854,000, or 5.6%, compared to $15.1 million
for the first quarter of 2023.
The decrease in total non-interest income was primarily due
to:
- A decrease of $1.5 million in the valuation of the loan
servicing asset reflecting increased prepayments in the second
quarter while the prior quarter reflected an improvement in market
conditions.
Partially offset by:
- An increase of $556,000 in the net gain on sales of loans, due
to higher volume and net premiums on sale.
During the second quarter of 2023, we sold $85.9 million of U.S.
government guaranteed loans compared to $72.2 million during the
first quarter of 2023.
Non-interest Expense
The following table presents the components of non-interest
expense for the periods indicated:
June 30, 2023
Three Months Ended
Change from
Recast
June 30,
March 31,
June 30,
March 31,
June 30,
(dollars in thousands)
2023
2023
2022
2023
2022
NON-INTEREST EXPENSE
Salaries and employee benefits
$
29,642
$
30,394
$
27,697
(2.5
)%
7.0
%
Occupancy and equipment expense, net
4,404
4,444
4,409
(0.9
)%
(0.1
)%
Impairment charge on assets held for
sale
—
20
—
(100.0
)%
0.0
%
Loan and lease related expenses
488
963
942
(49.3
)%
(48.1
)%
Legal, audit and other professional
fees
3,675
3,114
1,820
18.0
%
101.9
%
Data processing
4,272
3,783
3,396
12.9
%
25.8
%
Net (gain) loss recognized on other real
estate owned and other related expenses
288
(103
)
158
NM
82.4
%
Other intangible assets amortization
expense
1,455
1,455
1,868
0.0
%
(22.1
)%
Other non-interest expense
5,104
4,730
3,295
7.9
%
54.8
%
Total non-interest expense
$
49,328
$
48,800
$
43,585
1.1
%
13.2
%
Non-interest expense for the second quarter of 2023 was $49.3
million, an increase of $528,000, or 1.1%, from $48.8 million for
the first quarter of 2023.
The increase in total non-interest expense was primarily due to
merger-related expenses, resulting in:
- An increase of $561,000 in legal, audit and other professional
fees; and
- An increase of $489,000 in data processing.
Partially offset by:
- A decrease of $752,000 in salaries and employee benefits mainly
due to lower payroll taxes and higher deferred salary costs, offset
by higher salaries and incentives; and
- A decrease of $475,000 in loan and lease related expense, due
to lower expenses related to government guaranteed loans.
Our efficiency ratio was 52.92% for the second quarter of 2023
compared to 52.10% for the first quarter of 2023.
INCOME TAXES
We recorded income tax expense of $9.2 million during the second
quarter of 2023, compared to $8.3 million during the first quarter
of 2023. The effective tax rate was 26.1% and 25.7% for the second
quarter of 2023 and first quarter of 2023, respectively.
STATEMENTS OF FINANCIAL CONDITION
Total assets were $7.6 billion at June 30, 2023, an increase of
$45.3 million compared to $7.5 billion at March 31, 2023.
The current quarter increase was primarily due to:
- An increase in net loans and leases of $53.0 million primarily
due to growth in the commercial loan portfolio and the lease
financing portfolio; and
- An increase in cash and cash equivalents of $36.0 million
primarily to support customer activity and complete the acquisition
of Inland Bancorp.
Partially offset by:
- A decrease in securities available-for-sale of $38.7 million,
driven mainly by principal payments and changes in market
values.
The following table shows our allocation of the originated,
purchase credit deteriorated, and non-credit deteriorated loans and
leases at the dates indicated:
Recast
June 30, 2023
March 31, 2023
June 30, 2022
(dollars in thousands)
Amount
% of Total
Amount
% of Total
Amount
% of Total
Originated loans and leases
Commercial real estate
$
1,806,531
32.4
%
$
1,749,808
31.7
%
$
1,676,149
32.4
%
Residential real estate
453,880
8.1
%
441,291
8.0
%
401,773
7.8
%
Construction, land development, and other
land
387,623
7.0
%
446,763
8.1
%
434,132
8.4
%
Commercial and industrial
2,086,274
37.4
%
2,061,267
37.4
%
1,873,128
36.2
%
Installment and other
3,582
0.1
%
1,603
0.0
%
927
0.0
%
Leasing financing receivables
604,437
10.9
%
552,174
10.0
%
438,379
8.5
%
Total originated loans and leases
$
5,342,327
95.9
%
$
5,252,906
95.2
%
$
4,824,488
93.3
%
Purchased credit deteriorated
loans
Commercial real estate
$
30,724
0.6
%
$
39,000
0.7
%
$
54,739
1.1
%
Residential real estate
26,012
0.5
%
30,070
0.6
%
39,209
0.8
%
Construction, land development, and other
land
320
0.0
%
345
0.0
%
1,181
0.0
%
Commercial and industrial
1,726
0.0
%
1,745
0.0
%
2,557
0.0
%
Installment and other
129
0.0
%
134
0.0
%
155
0.0
%
Total purchased credit deteriorated
loans
$
58,911
1.1
%
$
71,294
1.3
%
$
97,841
1.9
%
Acquired non-credit-deteriorated loans
and leases
Commercial real estate
$
126,191
2.3
%
$
140,576
2.6
%
$
168,938
3.3
%
Residential real estate
25,055
0.4
%
27,975
0.5
%
40,257
0.8
%
Construction, land development, and other
land
—
0.0
%
—
0.0
%
191
0.0
%
Commercial and industrial
16,750
0.3
%
20,793
0.4
%
31,783
0.6
%
Installment and other
25
0.0
%
85
0.0
%
226
0.0
%
Leasing financing receivables
1,258
0.0
%
1,703
0.0
%
3,992
0.1
%
Total acquired non-credit-deteriorated
loans and leases
$
169,279
3.0
%
$
191,132
3.5
%
$
245,387
4.8
%
Total loans and leases
$
5,570,517
100.0
%
$
5,515,332
100.0
%
$
5,167,716
100.0
%
Allowance for credit losses - loans and
leases
(92,665
)
(90,465
)
(74,048
)
Total loans and leases, net of allowance
for credit losses - loans and leases
$
5,477,852
$
5,424,867
$
5,093,668
ASSET QUALITY
Non-Performing Assets
The following table sets forth the amounts of non-performing
loans and leases and other real estate owned at the dates
indicated:
June 30, 2023
Recast
Change from
(dollars in thousands)
June 30, 2023
March 31, 2023
June 30, 2022
March 31, 2023
June 30, 2022
Non-performing assets:
Non-accrual loans and leases
$
38,273
$
46,536
$
42,979
(17.8
)%
(10.9
)%
Past due loans and leases 90 days or more
and still accruing interest
—
—
—
—%
—%
Total non-performing loans and leases
$
38,273
$
46,536
$
42,979
(17.8
)%
(10.9
)%
Other real estate owned
2,265
3,712
4,749
(39.0
)%
(52.3
)%
Total non-performing assets
$
40,538
$
50,248
$
47,728
(19.3
)%
(15.1
)%
Total non-performing loans and leases as a
percentage of total loans and leases
0.69
%
0.84
%
0.83
%
Total non-performing assets as a
percentage of total assets
0.54
%
0.67
%
0.67
%
Allowance for credit losses - loans and
lease as a percentage of non-performing loans and leases
242.12
%
194.40
%
172.29
%
Non-performing assets guaranteed by
U.S. government:
Non-accrual loans guaranteed
$
2,472
$
2,335
$
1,731
5.9
%
42.8
%
Past due loans 90 days or more and still
accruing interest guaranteed
—
—
—
—%
—%
Total non-performing loans guaranteed
$
2,472
$
2,335
$
1,731
5.9
%
42.8
%
Total non-performing loans and leases not
guaranteed as a percentage of total loans and leases
0.64
%
0.80
%
0.80
%
Total non-performing assets not guaranteed
as a percentage of total assets
0.50
%
0.64
%
0.65
%
Variances in non-performing assets were:
- Non-performing loans and leases were $38.3 million at June 30,
2023, a decrease of $8.3 million from $46.5 million at March 31,
2023, primarily due to the resolution of impaired loans.
- Other real estate owned was $2.3 million at June 30, 2023, a
decrease of $1.4 million from $3.7 million at March 31, 2023,
primarily due to sales of properties.
Allowance for Credit Losses ("ACL") - Loans and
Leases
The following table presents the balance and activity within the
allowance for credit losses - loans and leases for the periods
indicated:
Three Months Ended
Recast
June 30,
March 31,
June 30,
(dollars in thousands)
2023
2023
2022
ACL - loans and leases, beginning of
period
$
90,465
$
81,924
$
72,107
Provision for credit losses - loans and
leases
6,467
9,712
4,105
Net charge-offs - loans and leases
(4,267
)
(1,171
)
(2,164
)
ACL - loans and leases, end of period
$
92,665
$
90,465
$
74,048
Net charge-offs - loans and leases to
average total loans and leases held for investment, net before
ACL
0.31
%
0.09
%
0.17
%
Provision for credit losses - loans and
leases to net charge-offs - loans and leases during the period
1.52
x
8.29
x
1.90
x
Net charge-offs of loans and leases during the second quarter of
2023 were $4.3 million, or 0.31% of average loans and leases, on an
annualized basis, an increase of $3.1 million compared to $1.2
million, or 0.09% of average loans and leases, during the first
quarter of 2023, and an increase of $2.1 million from $2.2 million
or 0.17% of average loans and leases from the comparable period a
year ago.
Net charge-offs for the second quarter of 2023 included $1.7
million in the unguaranteed portion of U.S. government guaranteed
loans, while net charge-offs for the first quarter of 2023 and
second quarter of 2022 included $1.1 million and $2.7 million,
respectively.
Deposits and Other Liabilities
The following table presents the composition of deposits at the
dates indicated:
June 30, 2023
Change from
(dollars in thousands)
June 30, 2023
March 31, 2023
June 30, 2022
March 31, 2023
June 30, 2022
Non-interest-bearing demand deposits
$
1,793,749
$
1,952,045
$
2,180,927
(8.1
)%
(17.8
)%
Interest-bearing checking accounts
530,775
560,837
535,856
(5.4
)%
(0.9
)%
Money market demand accounts
1,600,043
1,453,688
1,323,287
10.1
%
20.9
%
Other savings
562,706
590,231
669,164
(4.7
)%
(15.9
)%
Time deposits (below $250,000)
1,214,717
1,089,785
544,759
11.5
%
123.0
%
Time deposits ($250,000 and above)
215,102
166,066
134,384
29.5
%
60.1
%
Total deposits
$
5,917,092
$
5,812,652
$
5,388,377
1.8
%
9.8
%
Total deposits increased to $5.9 billion at June 30, 2023
compared to $5.8 billion at March 31, 2023. Non-interest-bearing
deposits were 30.3% and 33.6% of total deposits at June 30, 2023
and March 31, 2023, respectively. Estimated total uninsured
deposits were $1.5 billion and $1.6 billion as of June 30, 2023 and
March 31, 2023, and represented 25.9% and 27.9% of total deposits,
respectively.
The increase in deposits in the current quarter was due to:
- An increase in time deposits of $174.0 million, principally due
to changes in deposit mix and higher rates offered; and
- An increase in money market demand accounts of $146.4 million,
mainly due to increases in business accounts.
Partially offset by:
- A decrease in non-interest-bearing demand deposits of $158.3
million, due to higher alternative rates and seasonality.
Total borrowings and other liabilities were $844.7 million at
June 30, 2023, a decrease of $77.4 million from $922.0 million at
March 31, 2023, primarily driven by maturities of FHLB
borrowings.
Stockholders’ Equity
Total stockholders’ equity was $813.9 million at June 30, 2023,
an increase of $18.3 million from $795.7 million at March 31, 2023.
The increase was primarily due to increased retained earnings due
to net income.
The following table presents actual regulatory capital dollar
amounts and ratios of the Company and the Bank as of June 30,
2023:
Actual
Minimum Capital
Required
Required to be Considered Well
Capitalized
June 30, 2023
Amount
Ratio
Amount
Ratio
Amount
Ratio
Total capital to risk weighted assets:
Company
$
959,688
13.52
%
$
567,924
8.00
%
N/A
N/A
Bank
911,331
12.89
%
565,528
8.00
%
$
706,910
10.00
%
Tier 1 capital to risk weighted
assets:
Company
$
796,359
11.22
%
$
425,943
6.00
%
N/A
N/A
Bank
823,002
11.64
%
424,146
6.00
%
$
565,528
8.00
%
Common Equity Tier 1 (CET1) to risk
weighted assets:
Company
$
751,359
10.58
%
$
319,457
4.50
%
N/A
N/A
Bank
823,002
11.64
%
318,110
4.50
%
$
459,492
6.50
%
Tier 1 capital to average assets:
Company
$
796,359
10.74
%
$
296,702
4.00
%
N/A
N/A
Bank
823,002
11.12
%
$
296,100
4.00
%
$
370,125
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. The ratios above reflect the Company’s
election to opt into the regulators’ joint current expected credit
losses ("CECL") transition provision, which allows the Company to
phase in the capital impact of the adoption of CECL over the next
three years beginning January 1, 2022. Accordingly, capital ratios
as of June 30, 2023 reflect 50% of the CECL impact.
CECL Adoption
On December 31, 2022, the Company adopted CECL and applied it
retrospectively to the period beginning January 1, 2022 using the
modified retrospective method of accounting. Results for reporting
periods beginning after September 30, 2022 are presented under the
new standard, while prior quarters previously reported are recast
as if the new standard had been applied since January 1, 2022.
Refer to our Annual Report on Form 10-K for the year ended December
31, 2022 for additional information on the adoption of the
standard.
Conference Call, Webcast and Slide Presentation
We will host a conference call and webcast at 9:00 a.m. Central
Time on Friday, July 28, 2023 to discuss our quarterly financial
results. Analysts and investors may participate in the
question-and-answer session. The call can be accessed via telephone
at (833) 470-1428; passcode 993003. A recorded replay can be
accessed through August 11, 2023 by dialing (866) 813-9403;
passcode: 452045.
A slide presentation relating to our second quarter 2023 results
will be accessible prior to the conference call. The slide
presentation and webcast of the conference call can be accessed on
our investor relations website at www.bylinebancorp.com.
About Byline Bancorp, Inc.
Headquartered in Chicago, Byline Bancorp, Inc. is the parent
company of Byline Bank, a full service commercial bank serving
small- and medium-sized businesses, financial sponsors, and
consumers. Byline Bancorp, Inc. completed its acquisition of Inland
Bancorp, Inc. on July 1, 2023, with the combined entity operating
as Byline Bank and as a result has approximately $8.8 billion in
assets and operates 48 total branch locations throughout the
Chicago and Milwaukee metropolitan areas. Byline Bank offers a
broad range of commercial and retail banking products and services
including small ticket equipment leasing solutions and is one of
the top Small Business Administration lenders in the United
States.
Forward-Looking Statements
This communication contains forward-looking statements within
the meaning of the U.S. federal securities laws. Forward-looking
statements include, without limitation, statements concerning
plans, estimates, calculations, forecasts and projections with
respect to the anticipated future performance of the Company. These
statements are often, but not always, made through the use of words
or phrases such as ‘‘may’’, ‘‘might’’, ‘‘should’’, ‘‘could’’,
‘‘predict’’, ‘‘potential’’, ‘‘believe’’, ‘‘expect’’, ‘‘continue’’,
‘‘will’’, ‘‘anticipate’’, ‘‘seek’’, ‘‘estimate’’, ‘‘intend’’,
‘‘plan’’, ‘‘projection’’, ‘‘would’’, ‘‘annualized’’, “target” and
‘‘outlook’’, or the negative version of those words or other
comparable words or phrases of a future or forward-looking nature.
Forward-looking statements involve estimates and known and unknown
risks, and reflect various assumptions and involve elements of
subjective judgment and analysis, which may or may not prove to be
correct, and which are subject to uncertainties and contingencies
outside the control of Byline and its respective affiliates,
directors, employees and other representatives, which could cause
actual results to differ materially from those presented in this
communication.
No representations, warranties or guarantees are or will be made
by Byline as to the reliability, accuracy or completeness of any
forward-looking statements contained in this communication or that
such forward-looking statements are or will remain based on
reasonable assumptions. You should not place undue reliance on any
forward-looking statements contained in this communication.
Certain risks and important factors that could affect Byline’s
future results are identified in our Annual Report on Form 10-K and
other reports we file with the Securities and Exchange Commission,
including among other things under the heading “Risk Factors” in
our Annual Report on Form 10-K for the year ended December 31,
2022. Any forward-looking statement speaks only as of the date on
which it is made, and Byline undertakes no obligation to update any
forward-looking statement, whether to reflect events or
circumstances after the date on which the statement is made, to
reflect new information or the occurrence of unanticipated events,
or otherwise unless required under the federal securities laws.
BYLINE BANCORP, INC. AND
SUBSIDIARIES
CONSOLIDATED STATEMENTS OF
FINANCIAL CONDITION (unaudited)
Recast
Recast
June 30,
March 31,
December 31,
September 30,
June 30,
(dollars in thousands)
2023
2023
2022
2022
2022
ASSETS
Cash and due from banks
$
59,564
$
52,725
$
62,274
$
56,546
$
58,844
Interest bearing deposits with other
banks
260,621
231,486
117,079
159,744
83,057
Cash and cash equivalents
320,185
284,211
179,353
216,290
141,901
Equity and other securities, at fair
value
18,473
8,339
7,989
7,279
7,860
Securities available-for-sale, at fair
value
1,125,700
1,164,387
1,174,431
1,181,654
1,273,138
Securities held-to-maturity, at amortized
cost
2,158
2,704
2,705
3,877
3,880
Restricted stock, at cost
24,377
38,777
28,202
27,077
30,002
Loans held for sale
25,995
28,379
47,823
33,975
17,284
Loans and leases:
Loans and leases
5,570,517
5,515,332
5,421,258
5,275,126
5,167,716
Allowance for credit losses - loans and
leases
(92,665
)
(90,465
)
(81,924
)
(79,704
)
(74,048
)
Net loans and leases
5,477,852
5,424,867
5,339,334
5,195,422
5,093,668
Servicing assets, at fair value
21,715
20,944
19,172
21,127
22,155
Premises and equipment, net
56,304
56,098
56,798
59,049
60,773
Other real estate owned, net
2,265
3,712
4,717
4,402
4,749
Goodwill and other intangible assets,
net
155,977
157,432
158,887
160,484
162,094
Bank-owned life insurance
83,222
82,693
82,093
81,592
81,100
Deferred tax assets, net
66,895
64,918
68,213
95,831
82,412
Accrued interest receivable and other
assets
194,572
192,885
193,224
179,218
143,014
Total assets
$
7,575,690
$
7,530,346
$
7,362,941
$
7,267,277
$
7,124,030
LIABILITIES AND STOCKHOLDERS’
EQUITY
LIABILITIES
Non-interest-bearing demand deposits
$
1,793,749
$
1,952,045
$
2,138,645
$
2,142,183
$
2,180,927
Interest-bearing deposits
4,123,343
3,860,607
3,556,476
3,470,273
3,207,450
Total deposits
5,917,092
5,812,652
5,695,121
5,612,456
5,388,377
Other borrowings
574,922
662,810
640,399
653,954
748,092
Subordinated notes, net
73,778
73,735
73,691
73,648
73,604
Junior subordinated debentures issued to
capital trusts, net
37,557
37,442
37,338
37,232
37,123
Accrued expenses and other liabilities
158,399
148,057
150,576
154,182
121,186
Total liabilities
6,761,748
6,734,696
6,597,125
6,531,472
6,368,382
STOCKHOLDERS’ EQUITY
Preferred stock
—
—
—
—
—
Common stock
391
390
389
389
388
Additional paid-in capital
599,718
598,103
598,297
597,049
595,938
Retained earnings
379,078
356,365
335,794
314,800
297,765
Treasury stock
(50,383
)
(51,066
)
(51,114
)
(51,535
)
(47,181
)
Accumulated other comprehensive loss, net
of tax
(114,862
)
(108,142
)
(117,550
)
(124,898
)
(91,262
)
Total stockholders’ equity
813,942
795,650
765,816
735,805
755,648
Total liabilities and stockholders’
equity
$
7,575,690
$
7,530,346
$
7,362,941
$
7,267,277
$
7,124,030
BYLINE BANCORP, INC. AND
SUBSIDIARIES
CONSOLIDATED STATEMENTS OF
OPERATIONS (unaudited)
Three Months Ended
Six Months Ended
Recast
Recast
Recast
(dollars in thousands,
June 30,
March 31,
December 31,
September 30,
June 30,
June 30,
June 30,
except per share data)
2023
2023
2022
2022
2022
2023
2022
INTEREST AND DIVIDEND INCOME
Interest and fees on loans and leases
$
99,134
$
92,343
$
85,720
$
72,635
$
59,919
$
191,477
$
115,057
Interest on securities
6,559
6,600
6,569
6,402
6,264
13,159
12,419
Other interest and dividend income
1,579
1,059
1,515
626
496
2,638
616
Total interest and dividend income
107,272
100,002
93,804
79,663
66,679
207,274
128,092
INTEREST EXPENSE
Deposits
24,723
16,298
10,610
5,971
2,128
41,021
3,215
Other borrowings
4,241
5,888
4,598
3,232
1,097
10,129
1,492
Subordinated notes and debentures
2,142
2,098
1,992
1,825
1,694
4,240
3,294
Total interest expense
31,106
24,284
17,200
11,028
4,919
55,390
8,001
Net interest income
76,166
75,718
76,604
68,635
61,760
151,884
120,091
PROVISION FOR CREDIT LOSSES
5,790
9,825
5,826
7,208
4,286
15,615
10,845
Net interest income after provision for
credit losses
70,376
65,893
70,778
61,427
57,474
136,269
109,246
NON-INTEREST INCOME
Fees and service charges on deposits
2,233
2,120
2,081
2,128
2,059
4,353
3,943
Loan servicing revenue
3,377
3,380
3,293
3,422
3,384
6,757
6,764
Loan servicing asset revaluation
(865
)
656
(3,534
)
(2,342
)
(4,636
)
(209
)
(5,867
)
ATM and interchange fees
1,112
1,063
1,250
1,007
1,131
2,175
2,180
Net realized gains (losses) on securities
available-for-sale
—
—
—
(2
)
52
—
52
Change in fair value of equity securities,
net
193
350
710
(581
)
(697
)
543
(732
)
Net gains on sales of loans
5,704
5,148
5,509
5,580
9,983
10,852
20,810
Wealth management and trust income
1,039
924
864
995
900
1,963
1,948
Other non-interest income
1,498
1,504
1,282
1,836
2,097
3,002
4,718
Total non-interest income
14,291
15,145
11,455
12,043
14,273
29,436
33,816
NON-INTEREST EXPENSE
Salaries and employee benefits
29,642
30,394
31,808
29,587
27,697
60,036
56,656
Occupancy and equipment expense, net
4,404
4,444
3,532
3,919
4,409
8,848
9,537
Impairment charge on assets held for
sale
—
20
372
—
—
20
—
Loan and lease related expenses
488
963
1,126
530
942
1,451
51
Legal, audit, and other professional
fees
3,675
3,114
3,204
2,733
1,820
6,789
4,420
Data processing
4,272
3,783
3,406
3,370
3,396
8,055
6,582
Net (gain) loss recognized on other real
estate owned and other related expenses
288
(103
)
221
275
158
185
212
Other intangible assets amortization
expense
1,455
1,455
1,596
1,611
1,868
2,910
3,464
Other non-interest expense
5,104
4,730
5,235
4,016
3,295
9,834
6,619
Total non-interest expense
49,328
48,800
50,500
46,041
43,585
98,128
87,541
INCOME BEFORE PROVISION FOR INCOME
TAXES
35,339
32,238
31,733
27,429
28,162
67,577
55,521
PROVISION FOR INCOME TAXES
9,232
8,293
7,366
7,020
6,382
17,525
12,343
NET INCOME
26,107
23,945
24,367
20,409
21,780
50,052
43,178
Dividends on preferred shares
—
—
—
—
—
—
196
INCOME AVAILABLE TO COMMON
STOCKHOLDERS
$
26,107
$
23,945
$
24,367
$
20,409
$
21,780
$
50,052
$
42,982
EARNINGS PER COMMON SHARE
Basic
$
0.70
$
0.65
$
0.66
$
0.55
$
0.59
$
1.35
$
1.16
Diluted
$
0.70
$
0.64
$
0.65
$
0.55
$
0.58
$
1.34
$
1.14
BYLINE BANCORP, INC. AND
SUBSIDIARIES
SELECTED FINANCIAL DATA
(unaudited)
As of or For the Three Months
Ended
As of or For the Six Months
Ended
Recast
Recast
Recast
(dollars in thousands, except
share
June 30,
March 31,
December 31,
September 30,
June 30,
June 30,
June 30,
and per share data)
2023
2023
2022
2022
2022
2023
2022
Earnings per Common Share
Basic earnings per common share
$
0.70
$
0.65
$
0.66
$
0.55
$
0.59
$
1.35
$
1.16
Diluted earnings per common share
$
0.70
$
0.64
$
0.65
$
0.55
$
0.58
$
1.34
$
1.14
Adjusted diluted earnings per common
share(1)(3)
$
0.73
$
0.65
$
0.67
$
0.55
$
0.58
$
1.38
$
1.14
Weighted average common shares outstanding
(basic)
37,034,626
36,955,085
36,856,221
36,851,973
37,064,795
36,995,075
37,093,816
Weighted average common shares outstanding
(diluted)
37,337,906
37,539,912
37,360,113
37,371,159
37,612,268
37,444,381
37,740,682
Common shares outstanding
37,752,002
37,713,427
37,492,775
37,465,902
37,669,102
37,752,002
37,669,102
Cash dividends per common share
$
0.09
$
0.09
$
0.09
$
0.09
$
0.09
$
0.18
$
0.18
Dividend payout ratio on common stock
12.86
%
14.06
%
13.85
%
16.36
%
15.52
%
13.43
%
15.79
%
Tangible book value per common
share(1)
$
17.43
$
16.92
$
16.19
$
15.36
$
15.76
$
17.43
$
15.76
Key Ratios and Performance Metrics
(annualized where applicable)
Net interest margin, fully taxable
equivalent (1)(4)
4.33
%
4.39
%
4.40
%
4.04
%
3.78
%
4.36
%
3.79
%
Average cost of deposits
1.70
%
1.15
%
0.73
%
0.43
%
0.16
%
1.43
%
0.12
%
Efficiency ratio(2)
52.92
%
52.10
%
55.53
%
55.07
%
54.87
%
52.51
%
54.63
%
Adjusted efficiency ratio(1)(2)(3)
51.39
%
51.54
%
54.50
%
55.07
%
54.87
%
51.47
%
54.63
%
Non-interest income to total
revenues(1)
15.80
%
16.67
%
13.01
%
14.93
%
18.77
%
16.23
%
21.97
%
Non-interest expense to average assets
2.67
%
2.69
%
2.76
%
2.56
%
2.51
%
2.68
%
2.58
%
Adjusted non-interest expense to average
assets(1)(3)
2.60
%
2.67
%
2.71
%
2.56
%
2.51
%
2.63
%
2.58
%
Return on average stockholders' equity
12.99
%
12.38
%
12.92
%
10.57
%
11.35
%
12.69
%
10.94
%
Adjusted return on average stockholders'
equity(1)(3)
13.56
%
12.62
%
13.34
%
10.57
%
11.35
%
13.10
%
10.94
%
Return on average assets
1.41
%
1.32
%
1.33
%
1.13
%
1.25
%
1.37
%
1.27
%
Adjusted return on average
assets(1)(3)
1.48
%
1.35
%
1.37
%
1.13
%
1.25
%
1.41
%
1.27
%
Pre-tax pre-provision return on average
assets(1)
2.23
%
2.32
%
2.05
%
1.93
%
1.87
%
2.27
%
1.96
%
Adjusted pre-tax pre-provision return on
average assets(1)(3)
2.30
%
2.35
%
2.10
%
1.93
%
1.87
%
2.33
%
1.96
%
Return on average tangible common
stockholders' equity(1)
16.78
%
16.20
%
17.21
%
14.17
%
15.31
%
16.50
%
14.65
%
Adjusted return on average tangible common
stockholders' equity(1)(3)
17.50
%
16.49
%
17.75
%
14.17
%
15.31
%
17.01
%
14.65
%
Non-interest-bearing deposits to total
deposits
30.31
%
33.58
%
37.55
%
38.17
%
40.47
%
30.31
%
40.47
%
Loans and leases held for sale and loans
and lease held for investment to total deposits
94.58
%
95.37
%
96.03
%
94.59
%
96.23
%
94.58
%
96.23
%
Deposits to total liabilities
87.51
%
86.31
%
86.33
%
85.93
%
84.61
%
87.51
%
84.61
%
Deposits per branch
$
155,713
$
152,965
$
149,872
$
147,696
$
141,799
$
155,713
$
141,799
Asset Quality Ratios
Non-performing loans and leases to total
loans and leases held for investment, net before ACL
0.69
%
0.84
%
0.66
%
0.80
%
0.83
%
0.69
%
0.83
%
ACL to total loans and leases held for
investment, net before ACL
1.66
%
1.64
%
1.51
%
1.51
%
1.43
%
1.66
%
1.43
%
Net charge-offs to average total loans and
leases held for investment, net before ACL - loans and leases
0.31
%
0.09
%
0.24
%
0.14
%
0.17
%
0.20
%
0.12
%
Capital Ratios
Common equity to total assets
10.74
%
10.57
%
10.40
%
10.12
%
10.61
%
10.74
%
10.61
%
Tangible common equity to tangible
assets(1)
8.87
%
8.66
%
8.42
%
8.10
%
8.53
%
8.87
%
8.53
%
Leverage ratio
10.74
%
10.46
%
10.29
%
10.30
%
10.34
%
10.74
%
10.34
%
Common equity tier 1 capital ratio
10.58
%
10.27
%
10.20
%
10.24
%
10.26
%
10.58
%
10.26
%
Tier 1 capital ratio
11.22
%
10.90
%
10.85
%
10.91
%
10.95
%
11.22
%
10.95
%
Total capital ratio
13.52
%
13.19
%
13.00
%
13.02
%
13.09
%
13.52
%
13.09
%
(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 on
asset held for sale and merger-related expenses.
(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
YEAR-TO-DATE STATEMENT OF AVERAGE
INTEREST-EARNING ASSETS AND AVERAGE INTERST-BEARING LIABILITIES
(unaudited)
For the Six Months
Ended
June 30, 2023
Recast June 30, 2022
(dollars in thousands)
Average Balance(5)
Interest Inc / Exp
Average Yield / Rate
Average Balance(5)
Interest Inc / Exp
Average Yield / Rate
ASSETS
Cash and cash equivalents
$
116,394
$
1,483
2.57
%
$
70,404
$
103
0.29
%
Loans and leases(1)
5,510,124
191,477
7.01
%
4,839,266
115,057
4.79
%
Taxable securities
1,263,010
12,755
2.04
%
1,335,218
11,150
1.68
%
Tax-exempt securities(2)
151,509
1,974
2.63
%
169,107
2,255
2.69
%
Total interest-earning assets
$
7,041,037
$
207,689
5.95
%
$
6,413,995
$
128,565
4.04
%
Allowance for credit losses - loans and
leases
(88,586
)
(70,302
)
All other assets
422,236
489,070
TOTAL ASSETS
$
7,374,687
$
6,832,763
LIABILITIES AND STOCKHOLDERS’ EQUITY
Deposits
Interest checking
$
573,342
$
4,669
1.64
%
$
597,665
$
593
0.20
%
Money market accounts
1,500,260
18,527
2.49
%
1,281,519
1,668
0.26
%
Savings
594,316
447
0.15
%
657,155
159
0.05
%
Time deposits
1,148,545
17,378
3.05
%
644,543
795
0.25
%
Total interest-bearing deposits
3,816,463
41,021
2.17
%
3,180,882
3,215
0.20
%
Other borrowings
541,249
10,093
3.76
%
394,385
1,478
0.76
%
Federal funds purchased
1,381
36
5.30
%
1,271
14
2.32
%
Subordinated notes and debentures
111,178
4,240
7.69
%
110,570
3,294
6.01
%
Total borrowings
653,808
14,369
4.43
%
506,226
4,786
1.91
%
Total interest-bearing liabilities
$
4,470,271
$
55,390
2.50
%
$
3,687,108
$
8,001
0.44
%
Non-interest-bearing demand deposits
1,961,945
2,256,778
Other liabilities
147,130
93,166
Total stockholders’ equity
795,341
795,711
TOTAL LIABILITIES AND STOCKHOLDERS’
EQUITY
$
7,374,687
$
6,832,763
Net interest spread(3)
3.45
%
3.60
%
Net interest income, fully taxable
equivalent
$
152,299
$
120,564
Net interest margin, fully taxable
equivalent(2)(4)
4.36
%
3.79
%
Less: Tax-equivalent adjustment
415
0.01
%
473
0.01
%
Net interest income
$
151,884
$
120,091
Net interest margin(4)
4.35
%
3.78
%
Net loan accretion impact on margin
$
1,340
0.04
%
$
2,815
0.09
%
(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
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
As of or For the Six Months
Ended
Recast
Recast
Recast
June 30,
March 31,
December 31,
September 30,
June 30,
June 30,
June 30,
(dollars in thousands, except per share
data)
2023
2023
2022
2022
2022
2023
2022
Net income and earnings per share
excluding significant items
Reported Net Income
$
26,107
$
23,945
$
24,367
$
20,409
$
21,780
$
50,052
$
43,178
Significant items:
Impairment charges on assets held for
sale
—
20
372
—
—
20
—
Merger-related expenses
1,391
489
538
—
—
1,880
—
Tax benefit
(230
)
(56
)
(118
)
—
—
(286
)
—
Adjusted Net Income
$
27,268
$
24,398
$
25,159
$
20,409
$
21,780
$
51,666
$
43,178
Reported Diluted Earnings per
Share
$
0.70
$
0.64
$
0.65
$
0.55
$
0.58
$
1.34
$
1.14
Significant items:
Impairment charges on assets held for
sale
—
—
0.01
—
—
—
—
Merger-related expenses
0.04
0.01
0.01
—
—
0.05
—
Tax benefit
(0.01
)
—
—
—
—
(0.01
)
—
Adjusted Diluted Earnings per
Share
$
0.73
$
0.65
$
0.67
$
0.55
$
0.58
$
1.38
$
1.14
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 Six Months
Ended
Recast
Recast
Recast
(dollars in thousands, except per share
data,
June 30,
March 31,
December 31,
September 30,
June 30,
June 30,
June 30,
ratios annualized, where
applicable)
2023
2023
2022
2022
2022
2023
2022
Adjusted non-interest expense:
Non-interest expense
$
49,328
$
48,800
$
50,500
$
46,041
$
43,585
$
98,128
$
87,541
Less: Significant items
Impairment charges on assets held for
sale
—
20
372
—
—
20
—
Merger-related expenses
1,391
489
538
—
—
1,880
—
Adjusted non-interest expense
$
47,937
$
48,291
$
49,590
$
46,041
$
43,585
$
96,228
$
87,541
Adjusted non-interest expense excluding
amortization of intangible assets:
Adjusted non-interest expense
$
47,937
$
48,291
$
49,590
$
46,041
$
43,585
$
96,228
$
87,541
Less: Amortization of intangible
assets
1,455
1,455
1,596
1,611
1,868
2,910
3,464
Adjusted non-interest expense excluding
amortization of intangible assets
$
46,482
$
46,836
$
47,994
$
44,430
$
41,717
$
93,318
$
84,077
Pre-tax pre-provision net
income:
Pre-tax income
$
35,339
$
32,238
$
31,733
$
27,429
$
28,162
$
67,577
$
55,521
Add: Provision for credit losses
5,790
9,825
5,826
7,208
4,286
15,615
10,845
Pre-tax pre-provision net income
$
41,129
$
42,063
$
37,559
$
34,637
$
32,448
$
83,192
$
66,366
Adjusted pre-tax pre-provision net
income:
Pre-tax pre-provision net income
$
41,129
$
42,063
$
37,559
$
34,637
$
32,448
$
83,192
$
66,366
Add: Impairment charges on assets held for
sale
—
20
372
—
—
20
—
Add: Merger-related expenses
1,391
489
538
—
—
1,880
—
Adjusted pre-tax pre-provision net
income
$
42,520
$
42,572
$
38,469
$
34,637
$
32,448
$
85,092
$
66,366
Tax equivalent net interest
income
Net interest income
$
76,166
$
75,718
$
76,604
$
68,635
$
61,760
$
151,884
$
120,091
Add: Tax-equivalent adjustment
207
208
214
228
237
415
473
Net interest income, fully taxable
equivalent
$
76,373
$
75,926
$
76,818
$
68,863
$
61,997
$
152,299
$
120,564
Total revenue:
Net interest income
$
76,166
$
75,718
$
76,604
$
68,635
$
61,760
$
151,884
$
120,091
Add: Non-interest income
14,291
15,145
11,455
12,043
14,273
29,436
33,816
Total revenue
$
90,457
$
90,863
$
88,059
$
80,678
$
76,033
$
181,320
$
153,907
Tangible common stockholders'
equity:
Total stockholders' equity
$
813,942
$
795,650
$
765,816
$
735,805
$
755,648
$
813,942
$
755,648
Less: Preferred stock
—
—
—
—
—
—
—
Less: Goodwill and other intangibles
155,977
157,432
158,887
160,484
162,094
155,977
162,094
Tangible common stockholders' equity
$
657,965
$
638,218
$
606,929
$
575,321
$
593,554
$
657,965
$
593,554
Tangible assets:
Total assets
$
7,575,690
$
7,530,346
$
7,362,941
$
7,267,277
$
7,124,030
$
7,575,690
$
7,124,030
Less: Goodwill and other intangibles
155,977
157,432
158,887
160,484
162,094
155,977
162,094
Tangible assets
$
7,419,713
$
7,372,914
$
7,204,054
$
7,106,793
$
6,961,936
$
7,419,713
$
6,961,936
Average tangible common stockholders'
equity:
Average total stockholders' equity
$
806,272
$
784,289
$
748,292
$
765,821
$
769,658
$
795,341
$
795,711
Less: Average preferred stock
—
—
—
—
—
—
4,959
Less: Average goodwill and other
intangibles
156,766
158,181
159,680
161,292
163,068
157,469
163,948
Average tangible common stockholders'
equity
$
649,506
$
626,108
$
588,612
$
604,529
$
606,590
$
637,872
$
626,804
Average tangible assets:
Average total assets
$
7,403,899
$
7,345,151
$
7,266,053
$
7,137,472
$
6,966,564
$
7,374,687
$
6,832,763
Less: Average goodwill and other
intangibles
156,766
158,181
159,680
161,292
163,068
157,469
163,948
Average tangible assets
$
7,247,133
$
7,186,970
$
7,106,373
$
6,976,180
$
6,803,496
$
7,217,218
$
6,668,815
Tangible net income available to common
stockholders:
Net income available to common
stockholders
$
26,107
$
23,945
$
24,367
$
20,409
$
21,780
$
50,052
$
42,982
Add: After-tax intangible asset
amortization
1,067
1,066
1,170
1,181
1,369
2,133
2,539
Tangible net income available to common
stockholders
$
27,174
$
25,011
$
25,537
$
21,590
$
23,149
$
52,185
$
45,521
Adjusted tangible net income available
to common stockholders:
Tangible net income available to common
stockholders
$
27,174
$
25,011
$
25,537
$
21,590
$
23,149
$
52,185
$
45,521
Impairment charges on assets held for
sale
—
20
372
—
—
20
—
Merger-related expenses
1,391
489
538
—
—
1,880
—
Tax benefit on significant items
(230
)
(56
)
(118
)
—
—
(286
)
—
Adjusted tangible net income available to
common stockholders
$
28,335
$
25,464
$
26,329
$
21,590
$
23,149
$
53,799
$
45,521
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 Six Months
Ended
Recast
Recast
Recast
(dollars in thousands, except share and
per share
June 30,
March 31,
December 31,
September 30,
June 30,
June 30,
June 30,
data, ratios annualized, where
applicable)
2023
2023
2022
2022
2022
2023
2022
Pre-tax pre-provision return on average
assets:
Pre-tax pre-provision net income
$
41,129
$
42,063
$
37,559
$
34,637
$
32,448
$
83,192
$
66,366
Average total assets
7,403,899
7,345,151
7,266,053
7,137,472
6,966,564
7,374,687
6,832,763
Pre-tax pre-provision return on average
assets
2.23
%
2.32
%
2.05
%
1.93
%
1.87
%
2.27
%
1.96
%
Adjusted pre-tax pre-provision return
on average assets:
Adjusted pre-tax pre-provision net
income
$
42,520
$
42,572
$
38,469
$
34,637
$
32,448
$
85,092
$
66,366
Average total assets
7,403,899
7,345,151
7,266,053
7,137,472
6,966,564
7,374,687
6,832,763
Adjusted pre-tax pre-provision return on
average assets
2.30
%
2.35
%
2.10
%
1.93
%
1.87
%
2.33
%
1.96
%
Net interest margin, fully taxable
equivalent
Net interest income, fully taxable
equivalent
$
76,373
$
75,926
$
76,818
$
68,863
$
61,997
$
152,299
$
120,564
Total average interest-earning assets
7,072,581
7,009,144
6,922,889
6,763,916
6,573,352
7,041,037
6,413,995
Net interest margin, fully taxable
equivalent
4.33
%
4.39
%
4.40
%
4.04
%
3.78
%
4.36
%
3.79
%
Non-interest income to total
revenues:
Non-interest income
$
14,291
$
15,145
$
11,455
$
12,043
$
14,273
$
29,436
$
33,816
Total revenues
90,457
90,863
88,059
80,678
76,033
181,320
153,907
Non-interest income to total revenues
15.80
%
16.67
%
13.01
%
14.93
%
18.77
%
16.23
%
21.97
%
Adjusted non-interest expense to
average assets:
Adjusted non-interest expense
$
47,937
$
48,291
$
49,590
$
46,041
$
43,585
$
96,228
$
87,541
Average total assets
7,403,899
7,345,151
7,266,053
7,137,472
6,966,564
7,374,687
6,832,763
Adjusted non-interest expense to average
assets
2.60
%
2.67
%
2.71
%
2.56
%
2.51
%
2.63
%
2.58
%
Adjusted efficiency ratio:
Adjusted non-interest expense excluding
amortization of intangible assets
$
46,482
$
46,836
$
47,994
$
44,430
$
41,717
$
93,318
$
84,077
Total revenues
90,457
90,863
88,059
80,678
76,033
181,320
153,907
Adjusted efficiency ratio
51.39
%
51.54
%
54.50
%
55.07
%
54.87
%
51.47
%
54.63
%
Adjusted return on average
assets:
Adjusted net income
$
27,268
$
24,398
$
25,159
$
20,409
$
21,780
$
51,666
$
43,178
Average total assets
7,403,899
7,345,151
7,266,053
7,137,472
6,966,564
7,374,687
6,832,763
Adjusted return on average assets
1.48
%
1.35
%
1.37
%
1.13
%
1.25
%
1.41
%
1.27
%
Adjusted return on average
stockholders' equity:
Adjusted net income
$
27,268
$
24,398
$
25,159
$
20,409
$
21,780
$
51,666
$
43,178
Average stockholders' equity
806,272
784,289
748,292
765,821
769,658
795,341
795,711
Adjusted return on average stockholders'
equity
13.56
%
12.62
%
13.34
%
10.57
%
11.35
%
13.10
%
10.94
%
Tangible common equity to tangible
assets:
Tangible common equity
$
657,965
$
638,218
$
606,929
$
575,321
$
593,554
$
657,965
$
593,554
Tangible assets
7,419,713
7,372,914
7,204,054
7,106,793
6,961,936
7,419,713
6,961,936
Tangible common equity to tangible
assets
8.87
%
8.66
%
8.42
%
8.10
%
8.53
%
8.87
%
8.53
%
Return on average tangible common
stockholders' equity:
Tangible net income available to common
stockholders
$
27,174
$
25,011
$
25,537
$
21,590
$
23,149
$
52,185
$
45,521
Average tangible common stockholders'
equity
649,506
626,108
588,612
604,529
606,590
637,872
626,804
Return on average tangible common
stockholders' equity
16.78
%
16.20
%
17.21
%
14.17
%
15.31
%
16.50
%
14.65
%
Adjusted return on average tangible
common stockholders' equity:
Adjusted tangible net income available to
common stockholders
$
28,335
$
25,464
$
26,329
$
21,590
$
23,149
$
53,799
$
45,521
Average tangible common stockholders'
equity
649,506
626,108
588,612
604,529
606,590
637,872
626,804
Adjusted return on average tangible common
stockholders' equity
17.50
%
16.49
%
17.75
%
14.17
%
15.31
%
17.01
%
14.65
%
Tangible book value per share:
Tangible common equity
$
657,965
$
638,218
$
606,929
$
575,321
$
593,554
$
657,965
$
593,554
Common shares outstanding
37,752,002
37,713,427
37,492,775
37,465,902
37,669,102
37,752,002
37,669,102
Tangible book value per share
$
17.43
$
16.92
$
16.19
$
15.36
$
15.76
$
17.43
$
15.76
View source
version on businesswire.com: https://www.businesswire.com/news/home/20230727800032/en/
Investors: Brooks Rennie Investor Relations Director
312-660-5805 brennie@bylinebank.com
Media: Erin O’Neill Marketing Director 773-475-2901
eoneill@bylinebank.com
Grafico Azioni Byline Bancorp (NYSE:BY)
Storico
Da Gen 2025 a Feb 2025
Grafico Azioni Byline Bancorp (NYSE:BY)
Storico
Da Feb 2024 a Feb 2025
