First quarter net income of $30.4 million, $0.70 diluted earnings per share
Byline Bancorp, Inc. (NYSE: BY), today reported:
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For the quarter |
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First Quarter Highlights |
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1Q24 |
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4Q23 |
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1Q23 |
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Financial Results ($ in thousands) |
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• ROAA of 1.36% |
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Net interest income |
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$ |
85,541 |
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$ |
86,285 |
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$ |
75,718 |
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Non-interest income |
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15,473 |
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14,503 |
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15,145 |
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• PTPP ROAA of 2.10%(1) |
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Total Revenue(1) |
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101,014 |
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100,788 |
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90,863 |
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Non-interest expense |
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53,809 |
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53,584 |
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48,800 |
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• ROTCE of 15.88%(1) |
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Pre-tax pre-provision net income (PTPP)(1) |
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47,205 |
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47,204 |
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42,063 |
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Provision for credit losses |
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6,643 |
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7,235 |
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9,825 |
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• TCE/TA of 8.76%(1); CET1 of 10.59% |
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Provision for income taxes |
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10,122 |
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10,365 |
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8,293 |
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Net Income |
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$ |
30,440 |
$ |
29,604 |
$ |
23,945 |
• TBV per share of $18.29(1), up 8.1% YoY |
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Per Share |
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Income Statement |
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Diluted EPS |
$ |
0.70 |
$ |
0.68 |
$ |
0.64 |
• Total revenue of $101.0 million(1) |
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Dividends declared per common share |
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0.09 |
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0.09 |
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0.09 |
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Book value per share |
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22.88 |
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22.62 |
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21.10 |
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• Net Income of $30.4 million |
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Tangible book value per share(1) |
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18.29 |
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17.98 |
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16.92 |
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• PTPP of $47.2 million(1) |
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Balance Sheet & Credit Quality ($ in thousands) |
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Total deposits |
$ |
7,350,202 |
$ |
7,176,999 |
$ |
5,812,652 |
• Tax equivalent NIM of 4.01%(1) |
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Total loans and leases |
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6,801,782 |
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6,702,311 |
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5,543,711 |
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Net charge-offs (NCO) |
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6,211 |
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12,186 |
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1,171 |
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• Efficiency ratio of 51.94%(1) |
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Allowance for credit losses (ACL) |
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102,366 |
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101,686 |
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90,465 |
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ACL to total loans and leases held for investment |
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1.51% |
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1.52% |
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1.64% |
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Balance Sheet |
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• Deposit growth of $173.2 million, or 9.7%(2) |
Select Ratios (annualized where applicable) |
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Efficiency ratio(1) |
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51.94% |
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51.63% |
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52.10% |
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• Total loans and leases grew $99.5 million, |
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Return on average assets (ROAA) |
1.36% |
1.34% |
1.32% |
or 6.0%(2) |
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Return on average stockholders' equity |
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12.26% |
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12.56% |
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12.38% |
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Return on average tangible common equity(1) |
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15.88% |
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16.68% |
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16.20% |
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• Total assets grew $528.5 million, or 23.9%(2) |
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Net Interest Margin (NIM) |
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4.00% |
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4.08% |
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4.38% |
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Common equity to total assets |
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10.72% |
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11.15% |
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10.57% |
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• Stockholders' equity exceeded $1.0 billion |
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Tangible common equity to tangible assets(1) |
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8.76% |
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9.06% |
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8.66% |
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Common Equity Tier 1 |
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10.59% |
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10.35% |
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10.27% |
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• Loan/deposit ratio decreased to 92.54% |
(1) |
Represents non-GAAP financial measures. See “Reconciliation of non-GAAP Financial Measures” for a reconciliation to the most directly comparable GAAP financial measure. |
(2) |
Annualized |
| CEO/President Commentary |
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Roberto R. Herencia, Executive Chairman and CEO of Byline Bancorp, commented, "Our team continues to execute well on our strategy and this quarter was no exception. We reported strong financial results while surpassing $9.0 billion in total assets and $1.0 billion in stockholders’ equity. We remain optimistic about our opportunities to execute on our strategy in the future to further enhance the value of our franchise, while becoming the preeminent commercial bank in Chicago." Alberto J. Paracchini, President of Byline Bancorp, added, "We had a solid start to 2024 and were pleased with our results for quarter. Earnings and profitability remained robust and we had nice growth in loans and deposits. Credit quality remained stable and expenses continue to remain well managed. Our balance sheet remains strong, giving us flexibility to grow the business and take advantage of opportunities in the market. I want to thank our employees for their continued hard work in serving our clients." |
Board Declares Cash Dividend of $0.09 per Share
On April 23, 2024, the Company's Board of Directors declared a cash dividend of $0.09 per share, payable on May 21, 2024, to stockholders of record of the Company's common stock as of May 7, 2024.
STATEMENTS OF OPERATIONS HIGHLIGHTS
Net Interest Income
Net interest income for the first quarter of 2024 was $85.5 million, a decrease of $744,000, or 0.9%, from the fourth quarter of 2023. The decrease in net interest income was primarily due to an increase of $2.7 million in deposit interest expense primarily due to time deposit growth and higher rates paid on deposits, and an increase of $773,000 in other borrowing interest expense due to increased borrowings, offset by lower borrowing costs. The decrease was partially offset by an increase of $2.5 million in other interest and dividend income mainly due to interest income earned on funds held with the Federal Reserve Bank.
Tax-equivalent net interest margin(1) for the first quarter of 2024 was 4.01%, a decrease of eight basis points compared to the fourth quarter of 2023. Total net loan accretion income impact on the margin contributed 20 basis points to the net interest margin for the current quarter compared to 24 basis points for the prior quarter.
The average cost of total deposits was 2.56% for the first quarter of 2024, an increase of 14 basis points compared to the fourth quarter of 2023, as a result of higher rates on time deposits and money market accounts. Average non-interest-bearing demand deposits were 25.9% of average total deposits for the current quarter compared to 27.5% during the prior quarter.
Provision for Credit Losses
The provision for credit losses was $6.6 million for the first quarter of 2024, a decrease of $592,000 compared to $7.2 million for the fourth quarter of 2023, mainly attributed to a smaller allocation to individually assessed loans, offset by growth in the loan and lease portfolio. The provision for credit losses for the quarter is comprised of a provision for loan and lease losses of $6.9 million and a recapture for unfunded commitments of $248,000.
Non-interest Income
Non-interest income for the first quarter of 2024 was $15.5 million, an increase of $970,000, or 6.7%, compared to $14.5 million for the fourth quarter of 2023. The increase in total non-interest income was primarily due to a $1.0 million increase in other non-interest income due to increased income on derivatives and gains on the sales of leased equipment, and a $531,000 decrease in the downward valuation of the loan servicing asset reflecting lower discount rates. These were partially offset by a $449,000 decrease in the change in fair value of equity securities.
Net gains on sales of loans were $5.5 million for the current quarter, an increase of $53,000 compared to the prior quarter. During the first quarter of 2024, we sold $72.5 million of U.S. government guaranteed loans compared to $89.1 million during the fourth quarter of 2023.
Non-interest Expense
Non-interest expense for the first quarter of 2024 was $53.8 million, an increase of $225,000, or 0.4%, from $53.6 million for the fourth quarter of 2023. The increase in total non-interest expense was mainly due to an increase of $2.0 million in salaries and employee benefits primarily due to increases in payroll taxes due to annual counter resets, and an increase of $938,000 in occupancy and equipment expense, net, due to higher real estate taxes and maintenance expense. These increases were offset by a $2.0 million decrease in impairment charges on assets held for sale, and an $837,000 decrease in data processing expenses due to decreased merger-related expenses. Other non-interest expense includes $1.1 million of charges related to branch consolidations incurred during the first quarter of 2024.
Our efficiency ratio was 51.94% for the first quarter of 2024 compared to 51.63% for the fourth quarter of 2023, an increase of 31 basis points. Excluding significant items, our adjusted efficiency ratio(1) for the first quarter 2024 was 51.75%, compared to 48.64% for the fourth quarter of 2023.
Income Taxes
We recorded income tax expense of $10.1 million during the first quarter of 2024, compared to $10.4 million during the fourth quarter of 2023. The effective tax rates were 25.0% and 25.9% for the first quarter of 2024 and fourth quarter of 2023, respectively.
(1) |
Represents non-GAAP financial measures. See “Reconciliation of non-GAAP Financial Measures” for a reconciliation of our non-GAAP measures to the most directly comparable GAAP financial measure. |
STATEMENTS OF FINANCIAL CONDITION HIGHLIGHTS
Assets
Total assets were $9.4 billion as of March 31, 2024, an increase of $528.5 million, or 6.0%, compared to $8.9 billion at December 31, 2023. The increase was primarily due to an increase in cash and cash equivalents of $410.7 million, inclusive of $200.0 million in short-term investments, and an increase in net loans and leases held for investment of $93.2 million mainly due to growth in commercial and industrial originations, offset by a decline of $52.0 million in commercial real estate.
Asset and Credit Quality
The ACL was $102.4 million as of March 31, 2024, an increase of $680,000, or 0.7%, from $101.7 million at December 31, 2023. Net charge-offs of loans and leases during the first quarter of 2024 were $6.2 million, or 0.37% of average loans and leases, on an annualized basis. This was a decrease of $6.0 million compared to net charge-offs of $12.2 million, or 0.73% of average loans and leases, during the fourth quarter of 2023. The decrease is primarily due to lower charge-offs in the commercial and industrial and commercial real estate loan portfolios.
Non-performing assets were $68.7 million, or 0.73% of total assets, as of March 31, 2024, an increase of $3.4 million from $65.3 million, or 0.74% of total assets, at December 31, 2023. The increase was primarily the result of migration within the government guaranteed loan portfolio to non-accrual status. The government guaranteed portion of non-accrual loans was $7.1 million at March 31, 2024 compared to $4.2 million at December 31, 2023.
Deposits and Other Liabilities
Total deposits increased $173.2 million to $7.4 billion at March 31, 2024 compared to $7.2 billion at December 31, 2023. The increase in deposits in the current quarter was mainly due to increases in time deposits and interest bearing checking accounts. Time deposit growth of $137.7 million was principally due to increases in consumer time deposits from deposit campaigns. Interest-bearing demand deposits increased $109.5 million primarily due to growth in commercial deposits.
Total borrowings and other liabilities were $1.1 billion at March 31, 2024, an increase of $336.4 million from $714.8 million at December 31, 2023. The increase was primarily driven by a $200.0 million advance under the Bank Term Funding Program and increases in Federal Home Loan Bank advances, offset by a decrease of $11.3 million as a result of the repayment of the amount outstanding under our revolving line of credit.
Stockholders’ Equity
Total stockholders’ equity grew to $1.0 billion at March 31, 2024, an increase of $18.9 million from $990.2 million at December 31, 2023. The quarterly increase was primarily due to increased retained earnings from net income.
Conference Call, Webcast and Slide Presentation
We will host a conference call and webcast at 9:00 a.m. Central Time on Friday, April 26, 2024, to discuss our quarterly financial results. Analysts and investors may participate in the question-and-answer session. The call can be accessed via telephone at (833) 470-1428; passcode 371735. A recorded replay can be accessed through May 10, 2024, by dialing (866) 813-9403; passcode: 454029.
A slide presentation relating to our first quarter 2024 results will be accessible prior to the conference call. The slide presentation and webcast of the conference call can be accessed on our investor relations website at www.bylinebancorp.com.
About Byline Bancorp, Inc.
Headquartered in Chicago, Byline Bancorp, Inc. is the parent company of Byline Bank, a full service commercial bank serving small- and medium-sized businesses, financial sponsors, and consumers. Byline Bank has approximately $9.4 billion in assets and operates 48 branch locations throughout the Chicago and Milwaukee metropolitan areas. Byline Bank offers a broad range of commercial and community banking products and services including small ticket equipment leasing solutions and is one of the top Small Business Administration lenders in the United States.
Forward-Looking Statements
This communication contains forward-looking statements within the meaning of the U.S. federal securities laws. Forward-looking statements include, without limitation, statements concerning plans, estimates, calculations, forecasts and projections with respect to the anticipated future performance of the Company. These statements are often, but not always, made through the use of words or phrases such as ‘‘may’’, ‘‘might’’, ‘‘should’’, ‘‘could’’, ‘‘predict’’, ‘‘potential’’, ‘‘believe’’, ‘‘expect’’, ‘‘continue’’, ‘‘will’’, ‘‘anticipate’’, ‘‘seek’’, ‘‘estimate’’, ‘‘intend’’, ‘‘plan’’, ‘‘projection’’, ‘‘would’’, ‘‘annualized’’, “target” and ‘‘outlook’’, or the negative version of those words or other comparable words or phrases of a future or forward-looking nature. Forward-looking statements involve estimates and known and unknown risks, and reflect various assumptions and involve elements of subjective judgment and analysis, which may or may not prove to be correct, and which are subject to uncertainties and contingencies outside the control of Byline and its respective affiliates, directors, employees and other representatives, which could cause actual results to differ materially from those presented in this communication.
No representations, warranties or guarantees are or will be made by Byline as to the reliability, accuracy or completeness of any forward-looking statements contained in this communication or that such forward-looking statements are or will remain based on reasonable assumptions. You should not place undue reliance on any forward-looking statements contained in this communication.
Certain risks and important factors that could affect Byline’s future results are identified in our Annual Report on Form 10-K and other reports we file with the Securities and Exchange Commission, including among other things under the heading “Risk Factors” in our Annual Report on Form 10-K for the year ended December 31, 2023. Any forward-looking statement speaks only as of the date on which it is made, and Byline undertakes no obligation to update any forward-looking statement, whether to reflect events or circumstances after the date on which the statement is made, to reflect new information or the occurrence of unanticipated events, or otherwise unless required under the federal securities laws.
BYLINE BANCORP, INC. AND SUBSIDIARIES |
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CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION (unaudited) |
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March 31, |
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December 31, |
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March 31, |
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(dollars in thousands) |
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2024 |
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2023 |
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2023 |
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ASSETS |
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Cash and due from banks |
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$ |
58,640 |
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$ |
60,431 |
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$ |
52,725 |
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Interest bearing deposits with other banks |
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578,197 |
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165,705 |
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231,486 |
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Cash and cash equivalents |
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636,837 |
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226,136 |
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284,211 |
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Equity and other securities, at fair value |
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9,135 |
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8,743 |
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8,339 |
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Securities available-for-sale, at fair value |
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1,379,147 |
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1,342,480 |
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1,164,387 |
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Securities held-to-maturity, at amortized cost |
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1,156 |
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1,157 |
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2,704 |
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Restricted stock, at cost |
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22,793 |
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16,304 |
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38,777 |
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Loans held for sale |
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23,568 |
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18,005 |
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28,379 |
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Loans and leases: |
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Loans and leases |
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6,778,214 |
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6,684,306 |
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5,515,332 |
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Allowance for credit losses - loans and leases |
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(102,366 |
) |
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(101,686 |
) |
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(90,465 |
) |
Net loans and leases |
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6,675,848 |
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6,582,620 |
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5,424,867 |
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Servicing assets, at fair value |
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20,992 |
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19,844 |
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20,944 |
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Premises and equipment, net |
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64,466 |
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66,627 |
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56,098 |
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Goodwill and other intangible assets, net |
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202,133 |
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203,478 |
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157,432 |
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Bank-owned life insurance |
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97,748 |
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96,900 |
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82,693 |
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Deferred tax assets, net |
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53,029 |
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50,058 |
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64,918 |
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Accrued interest receivable and other assets |
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223,651 |
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249,615 |
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196,597 |
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Total assets |
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$ |
9,410,503 |
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$ |
8,881,967 |
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$ |
7,530,346 |
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LIABILITIES AND STOCKHOLDERS’ EQUITY |
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LIABILITIES |
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Non-interest-bearing demand deposits |
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$ |
1,851,727 |
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$ |
1,905,876 |
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$ |
1,952,045 |
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Interest-bearing deposits |
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5,498,475 |
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5,271,123 |
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3,860,607 |
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Total deposits |
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7,350,202 |
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7,176,999 |
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5,812,652 |
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Other borrowings |
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721,173 |
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395,190 |
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662,810 |
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Subordinated notes, net |
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73,909 |
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73,866 |
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|
73,735 |
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Junior subordinated debentures issued to
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70,567 |
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70,452 |
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37,442 |
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Accrued interest payable and other liabilities |
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185,603 |
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175,309 |
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148,057 |
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Total liabilities |
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8,401,454 |
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7,891,816 |
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6,734,696 |
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STOCKHOLDERS’ EQUITY |
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Common stock |
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452 |
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451 |
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|
390 |
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Additional paid-in capital |
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708,844 |
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710,488 |
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598,103 |
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Retained earnings |
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455,532 |
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429,036 |
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356,365 |
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Treasury stock |
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(48,869 |
) |
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(49,707 |
) |
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(51,066 |
) |
Accumulated other comprehensive loss, net of tax |
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(106,910 |
) |
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(100,117 |
) |
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(108,142 |
) |
Total stockholders’ equity |
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1,009,049 |
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|
990,151 |
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|
795,650 |
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Total liabilities and stockholders’ equity |
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$ |
9,410,503 |
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$ |
8,881,967 |
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$ |
7,530,346 |
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BYLINE BANCORP, INC. AND SUBSIDIARIES |
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CONSOLIDATED STATEMENTS OF OPERATIONS (unaudited) |
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Three Months Ended |
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March 31, |
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December 31, |
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March 31, |
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(dollars in thousands, except per share data) |
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2024 |
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2023 |
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2023 |
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INTEREST AND DIVIDEND INCOME |
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Interest and fees on loans and leases |
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$ |
123,792 |
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$ |
124,042 |
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$ |
92,343 |
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Interest on securities |
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|
9,734 |
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|
|
9,227 |
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|
|
6,600 |
|
Other interest and dividend income |
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|
4,795 |
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|
|
2,345 |
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|
|
1,059 |
|
Total interest and dividend income |
|
|
138,321 |
|
|
|
135,614 |
|
|
|
100,002 |
|
INTEREST EXPENSE |
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Deposits |
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45,962 |
|
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|
43,252 |
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|
16,298 |
|
Other borrowings |
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|
3,824 |
|
|
|
3,051 |
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|
|
5,888 |
|
Subordinated notes and debentures |
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|
2,994 |
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|
3,026 |
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|
2,098 |
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Total interest expense |
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|
52,780 |
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|
|
49,329 |
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|
|
24,284 |
|
Net interest income |
|
|
85,541 |
|
|
|
86,285 |
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|
75,718 |
|
PROVISION FOR CREDIT LOSSES |
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|
6,643 |
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|
|
7,235 |
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|
|
9,825 |
|
Net interest income after provision for
|
|
|
78,898 |
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|
|
79,050 |
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|
|
65,893 |
|
NON-INTEREST INCOME |
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Fees and service charges on deposits |
|
|
2,427 |
|
|
|
2,486 |
|
|
|
2,120 |
|
Loan servicing revenue |
|
|
3,364 |
|
|
|
3,377 |
|
|
|
3,380 |
|
Loan servicing asset revaluation |
|
|
(703 |
) |
|
|
(1,234 |
) |
|
|
656 |
|
ATM and interchange fees |
|
|
1,075 |
|
|
|
1,082 |
|
|
|
1,063 |
|
Change in fair value of equity securities, net |
|
|
392 |
|
|
|
841 |
|
|
|
350 |
|
Net gains on sales of loans |
|
|
5,533 |
|
|
|
5,480 |
|
|
|
5,148 |
|
Wealth management and trust income |
|
|
1,157 |
|
|
|
1,256 |
|
|
|
924 |
|
Other non-interest income |
|
|
2,228 |
|
|
|
1,215 |
|
|
|
1,504 |
|
Total non-interest income |
|
|
15,473 |
|
|
|
14,503 |
|
|
|
15,145 |
|
NON-INTEREST EXPENSE |
|
|
|
|
|
|
|
|
|
|||
Salaries and employee benefits |
|
|
33,953 |
|
|
|
31,974 |
|
|
|
30,394 |
|
Occupancy and equipment expense, net |
|
|
5,284 |
|
|
|
4,346 |
|
|
|
4,444 |
|
Impairment charge on assets held for sale |
|
|
— |
|
|
|
1,980 |
|
|
|
20 |
|
Loan and lease related expenses |
|
|
685 |
|
|
|
649 |
|
|
|
963 |
|
Legal, audit, and other professional fees |
|
|
2,719 |
|
|
|
2,352 |
|
|
|
3,114 |
|
Data processing |
|
|
4,145 |
|
|
|
4,982 |
|
|
|
3,783 |
|
Net (gain) loss recognized on other real estate
|
|
|
(98 |
) |
|
|
89 |
|
|
|
(103 |
) |
Other intangible assets amortization expense |
|
|
1,345 |
|
|
|
1,550 |
|
|
|
1,455 |
|
Other non-interest expense |
|
|
5,776 |
|
|
|
5,662 |
|
|
|
4,730 |
|
Total non-interest expense |
|
|
53,809 |
|
|
|
53,584 |
|
|
|
48,800 |
|
INCOME BEFORE PROVISION FOR INCOME TAXES |
|
|
40,562 |
|
|
|
39,969 |
|
|
|
32,238 |
|
PROVISION FOR INCOME TAXES |
|
|
10,122 |
|
|
|
10,365 |
|
|
|
8,293 |
|
NET INCOME |
|
$ |
30,440 |
|
|
$ |
29,604 |
|
|
$ |
23,945 |
|
EARNINGS PER COMMON SHARE |
|
|
|
|
|
|
|
|
|
|||
Basic |
|
$ |
0.70 |
|
|
$ |
0.69 |
|
|
$ |
0.65 |
|
Diluted |
|
$ |
0.70 |
|
|
$ |
0.68 |
|
|
$ |
0.64 |
|
BYLINE BANCORP, INC. AND SUBSIDIARIES |
|||||||||||
SELECTED FINANCIAL DATA (unaudited) |
|||||||||||
|
As of or For the Three Months Ended |
|
|||||||||
(dollars in thousands, except share |
March 31, |
|
|
December 31, |
|
|
March 31, |
|
|||
and per share data) |
2024 |
|
|
2023 |
|
|
2023 |
|
|||
Earnings per Common Share |
|
|
|
|
|
|
|
|
|||
Basic earnings per common share |
$ |
0.70 |
|
|
$ |
0.69 |
|
|
$ |
0.65 |
|
Diluted earnings per common share |
$ |
0.70 |
|
|
$ |
0.68 |
|
|
$ |
0.64 |
|
Adjusted diluted earnings per common share(1)(3) |
$ |
0.70 |
|
|
$ |
0.73 |
|
|
$ |
0.65 |
|
Weighted average common shares outstanding (basic) |
|
43,258,087 |
|
|
|
43,065,294 |
|
|
|
36,955,085 |
|
Weighted average common shares outstanding (diluted) |
|
43,727,344 |
|
|
|
43,537,778 |
|
|
|
37,539,912 |
|
Common shares outstanding |
|
44,108,387 |
|
|
|
43,764,056 |
|
|
|
37,713,427 |
|
Cash dividends per common share |
$ |
0.09 |
|
|
$ |
0.09 |
|
|
$ |
0.09 |
|
Dividend payout ratio on common stock |
|
12.86 |
% |
|
|
13.24 |
% |
|
|
14.06 |
% |
Book value per common share |
$ |
22.88 |
|
|
$ |
22.62 |
|
|
$ |
21.10 |
|
Tangible book value per common share(1) |
$ |
18.29 |
|
|
$ |
17.98 |
|
|
$ |
16.92 |
|
Key Ratios and Performance Metrics
|
|
|
|
|
|
|
|
|
|||
Net interest margin |
|
4.00 |
% |
|
|
4.08 |
% |
|
|
4.38 |
% |
Net interest margin, fully taxable equivalent (1)(4) |
|
4.01 |
% |
|
|
4.09 |
% |
|
|
4.39 |
% |
Average cost of deposits |
|
2.56 |
% |
|
|
2.42 |
% |
|
|
1.15 |
% |
Efficiency ratio(1)(2) |
|
51.94 |
% |
|
|
51.63 |
% |
|
|
52.10 |
% |
Adjusted efficiency ratio(1)(2)(3) |
|
51.75 |
% |
|
|
48.64 |
% |
|
|
51.54 |
% |
Non-interest income to total revenues(1) |
|
15.32 |
% |
|
|
14.39 |
% |
|
|
16.67 |
% |
Non-interest expense to average assets |
|
2.40 |
% |
|
|
2.42 |
% |
|
|
2.69 |
% |
Adjusted non-interest expense to average assets(1)(3) |
|
2.39 |
% |
|
|
2.28 |
% |
|
|
2.67 |
% |
Return on average stockholders' equity |
|
12.26 |
% |
|
|
12.56 |
% |
|
|
12.38 |
% |
Adjusted return on average stockholders' equity(1)(3) |
|
12.31 |
% |
|
|
13.50 |
% |
|
|
12.62 |
% |
Return on average assets |
|
1.36 |
% |
|
|
1.34 |
% |
|
|
1.32 |
% |
Adjusted return on average assets(1)(3) |
|
1.36 |
% |
|
|
1.44 |
% |
|
|
1.35 |
% |
Pre-tax pre-provision return on average assets(1) |
|
2.10 |
% |
|
|
2.13 |
% |
|
|
2.32 |
% |
Adjusted pre-tax pre-provision return on average assets(1)(3) |
|
2.11 |
% |
|
|
2.27 |
% |
|
|
2.35 |
% |
Return on average tangible common stockholders' equity(1) |
|
15.88 |
% |
|
|
16.68 |
% |
|
|
16.20 |
% |
Adjusted return on average tangible common
|
|
15.95 |
% |
|
|
17.89 |
% |
|
|
16.49 |
% |
Non-interest-bearing deposits to total deposits |
|
25.19 |
% |
|
|
26.56 |
% |
|
|
33.58 |
% |
Loans and leases held for sale and loans and lease
|
|
92.54 |
% |
|
|
93.39 |
% |
|
|
95.37 |
% |
Deposits to total liabilities |
|
87.49 |
% |
|
|
90.94 |
% |
|
|
86.31 |
% |
Deposits per branch |
$ |
153,129 |
|
|
$ |
149,521 |
|
|
$ |
152,965 |
|
Asset Quality Ratios |
|
|
|
|
|
|
|
|
|||
Non-performing loans and leases to total loans and leases
|
|
1.00 |
% |
|
|
0.96 |
% |
|
|
0.84 |
% |
Total non-performing assets as a percentage
|
|
0.73 |
% |
|
|
0.74 |
% |
|
|
0.67 |
% |
ACL to total loans and leases held for investment, net before ACL |
|
1.51 |
% |
|
|
1.52 |
% |
|
|
1.64 |
% |
Net charge-offs (annualized) to average total loans and leases held for
|
|
0.37 |
% |
|
|
0.73 |
% |
|
|
0.09 |
% |
Capital Ratios |
|
|
|
|
|
|
|
|
|||
Common equity to total assets |
|
10.72 |
% |
|
|
11.15 |
% |
|
|
10.57 |
% |
Tangible common equity to tangible assets(1) |
|
8.76 |
% |
|
|
9.06 |
% |
|
|
8.66 |
% |
Leverage ratio |
|
10.91 |
% |
|
|
10.86 |
% |
|
|
10.46 |
% |
Common equity tier 1 capital ratio |
|
10.59 |
% |
|
|
10.35 |
% |
|
|
10.27 |
% |
Tier 1 capital ratio |
|
11.62 |
% |
|
|
11.39 |
% |
|
|
10.90 |
% |
Total capital ratio |
|
13.66 |
% |
|
|
13.38 |
% |
|
|
13.19 |
% |
(1) |
Represents a non-GAAP financial measure. See “Reconciliation of non-GAAP Financial Measures” for a reconciliation of our non-GAAP measures to the most directly comparable GAAP financial measure. |
(2) |
Represents non-interest expense less amortization of intangible assets divided by net interest income and non-interest income. |
(3) |
Calculation excludes merger-related expenses and impairment charges on assets held for sale and ROU assets. |
(4) |
Interest income and rates include the effects of a tax equivalent adjustment to adjust tax exempt investment income on tax exempt investment securities to a fully taxable basis, assuming a federal income tax rate of 21%. |
BYLINE BANCORP, INC. AND SUBSIDIARIES |
|||||||||||||||||||||||||||||||||||
QUARTER-TO-DATE STATEMENT OF AVERAGE INTEREST-EARNING ASSETS AND AVERAGE INTEREST-BEARING LIABILITIES (unaudited) |
|||||||||||||||||||||||||||||||||||
|
For the Three Months Ended |
|
|||||||||||||||||||||||||||||||||
|
March 31, 2024 |
|
|
December 31, 2023 |
|
|
March 31, 2023 |
|
|||||||||||||||||||||||||||
(dollars in thousands) |
Average
|
|
|
Interest
|
|
|
Avg.
|
|
|
Average
|
|
|
Interest
|
|
|
Avg.
|
|
|
Average
|
|
|
Interest
|
|
|
Avg.
|
|
|||||||||
ASSETS |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Cash and cash equivalents |
$ |
339,449 |
|
|
$ |
3,828 |
|
|
|
4.54 |
% |
|
$ |
201,862 |
|
|
$ |
1,822 |
|
|
|
3.58 |
% |
|
$ |
97,578 |
|
|
$ |
442 |
|
|
|
1.84 |
% |
Loans and leases(1) |
|
6,681,488 |
|
|
|
123,792 |
|
|
|
7.45 |
% |
|
|
6,632,827 |
|
|
|
124,042 |
|
|
|
7.42 |
% |
|
|
5,484,372 |
|
|
|
92,343 |
|
|
|
6.83 |
% |
Taxable securities |
|
1,422,661 |
|
|
|
9,822 |
|
|
|
2.78 |
% |
|
|
1,389,580 |
|
|
|
8,848 |
|
|
|
2.53 |
% |
|
|
1,275,377 |
|
|
|
6,431 |
|
|
|
2.04 |
% |
Tax-exempt securities(2) |
|
159,984 |
|
|
|
1,112 |
|
|
|
2.80 |
% |
|
|
163,608 |
|
|
|
1,142 |
|
|
|
2.77 |
% |
|
|
151,817 |
|
|
|
994 |
|
|
|
2.65 |
% |
Total interest-earning assets |
$ |
8,603,582 |
|
|
$ |
138,554 |
|
|
|
6.48 |
% |
|
$ |
8,387,877 |
|
|
$ |
135,854 |
|
|
|
6.43 |
% |
|
$ |
7,009,144 |
|
|
$ |
100,210 |
|
|
|
5.80 |
% |
Allowance for credit losses -
|
|
(102,256 |
) |
|
|
|
|
|
|
|
|
(106,474 |
) |
|
|
|
|
|
|
|
|
(84,321 |
) |
|
|
|
|
|
|
||||||
All other assets |
|
529,615 |
|
|
|
|
|
|
|
|
|
506,233 |
|
|
|
|
|
|
|
|
|
420,328 |
|
|
|
|
|
|
|
||||||
TOTAL ASSETS |
$ |
9,030,941 |
|
|
|
|
|
|
|
|
$ |
8,787,636 |
|
|
|
|
|
|
|
|
$ |
7,345,151 |
|
|
|
|
|
|
|
||||||
LIABILITIES AND STOCKHOLDERS’
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Deposits |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Interest checking |
$ |
590,406 |
|
|
$ |
2,429 |
|
|
|
1.65 |
% |
|
$ |
570,706 |
|
|
$ |
2,335 |
|
|
|
1.62 |
% |
|
$ |
606,008 |
|
|
$ |
2,494 |
|
|
|
1.67 |
% |
Money market accounts |
|
2,237,324 |
|
|
|
19,660 |
|
|
|
3.53 |
% |
|
|
2,159,841 |
|
|
|
18,730 |
|
|
|
3.44 |
% |
|
|
1,465,677 |
|
|
|
7,728 |
|
|
|
2.14 |
% |
Savings |
|
531,912 |
|
|
|
197 |
|
|
|
0.15 |
% |
|
|
560,372 |
|
|
|
208 |
|
|
|
0.15 |
% |
|
|
613,590 |
|
|
|
227 |
|
|
|
0.15 |
% |
Time deposits |
|
1,992,357 |
|
|
|
23,676 |
|
|
|
4.78 |
% |
|
|
1,861,279 |
|
|
|
21,979 |
|
|
|
4.68 |
% |
|
|
966,409 |
|
|
|
5,849 |
|
|
|
2.45 |
% |
Total interest-bearing
|
|
5,351,999 |
|
|
|
45,962 |
|
|
|
3.45 |
% |
|
|
5,152,198 |
|
|
|
43,252 |
|
|
|
3.33 |
% |
|
|
3,651,684 |
|
|
|
16,298 |
|
|
|
1.81 |
% |
Other borrowings |
|
472,644 |
|
|
|
3,824 |
|
|
|
3.25 |
% |
|
|
395,711 |
|
|
|
3,051 |
|
|
|
3.06 |
% |
|
|
573,433 |
|
|
|
5,852 |
|
|
|
4.14 |
% |
Federal funds purchased |
|
— |
|
|
|
— |
|
|
|
0.00 |
% |
|
|
— |
|
|
|
— |
|
|
|
0.00 |
% |
|
|
2,778 |
|
|
|
36 |
|
|
|
5.30 |
% |
Subordinated notes and
|
|
144,387 |
|
|
|
2,994 |
|
|
|
8.34 |
% |
|
|
144,230 |
|
|
|
3,026 |
|
|
|
8.32 |
% |
|
|
111,101 |
|
|
|
2,098 |
|
|
|
7.66 |
% |
Total borrowings |
|
617,031 |
|
|
|
6,818 |
|
|
|
4.44 |
% |
|
|
539,941 |
|
|
|
6,077 |
|
|
|
4.47 |
% |
|
|
687,312 |
|
|
|
7,986 |
|
|
|
4.71 |
% |
Total interest-bearing liabilities |
$ |
5,969,030 |
|
|
$ |
52,780 |
|
|
|
3.56 |
% |
|
$ |
5,692,139 |
|
|
$ |
49,329 |
|
|
|
3.44 |
% |
|
$ |
4,338,996 |
|
|
$ |
24,284 |
|
|
|
2.27 |
% |
Non-interest-bearing
|
|
1,874,322 |
|
|
|
|
|
|
|
|
|
1,950,644 |
|
|
|
|
|
|
|
|
|
2,076,613 |
|
|
|
|
|
|
|
||||||
Other liabilities |
|
188,783 |
|
|
|
|
|
|
|
|
|
209,656 |
|
|
|
|
|
|
|
|
|
145,253 |
|
|
|
|
|
|
|
||||||
Total stockholders’ equity |
|
998,806 |
|
|
|
|
|
|
|
|
|
935,197 |
|
|
|
|
|
|
|
|
|
784,289 |
|
|
|
|
|
|
|
||||||
TOTAL LIABILITIES AND
|
$ |
9,030,941 |
|
|
|
|
|
|
|
|
$ |
8,787,636 |
|
|
|
|
|
|
|
|
$ |
7,345,151 |
|
|
|
|
|
|
|
||||||
Net interest spread(3) |
|
|
|
|
|
|
|
2.92 |
% |
|
|
|
|
|
|
|
|
2.99 |
% |
|
|
|
|
|
|
|
|
3.53 |
% |
||||||
Net interest income, fully
|
|
|
|
$ |
85,774 |
|
|
|
|
|
|
|
|
$ |
86,525 |
|
|
|
|
|
|
|
|
$ |
75,926 |
|
|
|
|
||||||
Net interest margin, fully
|
|
|
|
|
|
|
|
4.01 |
% |
|
|
|
|
|
|
|
|
4.09 |
% |
|
|
|
|
|
|
|
|
4.39 |
% |
||||||
Less: Tax-equivalent adjustment |
|
|
|
|
233 |
|
|
|
0.01 |
% |
|
|
|
|
|
240 |
|
|
|
0.01 |
% |
|
|
|
|
|
208 |
|
|
|
0.01 |
% |
|||
Net interest income |
|
|
|
$ |
85,541 |
|
|
|
|
|
|
|
|
$ |
86,285 |
|
|
|
|
|
|
|
|
$ |
75,718 |
|
|
|
|
||||||
Net interest margin(4) |
|
|
|
|
|
|
|
4.00 |
% |
|
|
|
|
|
|
|
|
4.08 |
% |
|
|
|
|
|
|
|
|
4.38 |
% |
||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Net loan accretion impact
|
|
|
|
$ |
4,284 |
|
|
|
0.20 |
% |
|
|
|
|
$ |
5,110 |
|
|
|
0.24 |
% |
|
|
|
|
$ |
729 |
|
|
|
0.04 |
% |
|||
(1) |
Loan and lease balances are net of deferred origination fees and costs and initial direct costs. Non-accrual loans and leases are included in total loan and lease balances. |
(2) |
Interest income and rates include the effects of a tax equivalent adjustment to adjust tax exempt investment income on tax exempt investment securities to a fully taxable basis, assuming a federal income tax rate of 21%. |
(3) |
Represents the average rate earned on interest-earning assets minus the average rate paid on interest-bearing liabilities. |
(4) |
Represents net interest income (annualized) divided by total average earning assets. |
(5) |
Average balances are average daily balances. |
BYLINE BANCORP, INC. AND SUBSIDIARIES |
||||||||||||||||||||||||
SELECTED BALANCE SHEET TABLES AND FINANCIAL RATIOS (unaudited) |
||||||||||||||||||||||||
|
||||||||||||||||||||||||
The following table presents our allocation of originated, purchased credit deteriorated (PCD), and acquired non-credit-deteriorated loans and leases at the dates indicated: |
||||||||||||||||||||||||
|
|
March 31, 2024 |
|
|
December 31, 2023 |
|
|
March 31, 2023 |
|
|||||||||||||||
(dollars in thousands) |
|
Amount |
|
|
% of Total |
|
|
Amount |
|
|
% of Total |
|
|
Amount |
|
|
% of Total |
|
||||||
Originated loans and leases: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Commercial real estate |
|
$ |
1,879,149 |
|
|
|
27.7 |
% |
|
$ |
1,907,029 |
|
|
|
28.5 |
% |
|
$ |
1,749,808 |
|
|
|
31.7 |
% |
Residential real estate |
|
|
488,887 |
|
|
|
7.2 |
% |
|
|
465,133 |
|
|
|
7.0 |
% |
|
|
441,291 |
|
|
|
8.0 |
% |
Construction, land development, and
|
|
|
416,996 |
|
|
|
6.2 |
% |
|
|
415,162 |
|
|
|
6.2 |
% |
|
|
446,763 |
|
|
|
8.1 |
% |
Commercial and industrial |
|
|
2,420,952 |
|
|
|
35.7 |
% |
|
|
2,311,563 |
|
|
|
34.6 |
% |
|
|
2,061,267 |
|
|
|
37.4 |
% |
Installment and other |
|
|
2,855 |
|
|
|
0.0 |
% |
|
|
2,919 |
|
|
|
0.0 |
% |
|
|
1,603 |
|
|
|
0.0 |
% |
Leasing financing receivables |
|
|
691,617 |
|
|
|
10.2 |
% |
|
|
665,239 |
|
|
|
10.0 |
% |
|
|
552,174 |
|
|
|
10.0 |
% |
Total originated loans and leases |
|
$ |
5,900,456 |
|
|
|
87.0 |
% |
|
$ |
5,767,045 |
|
|
|
86.3 |
% |
|
$ |
5,252,906 |
|
|
|
95.2 |
% |
Purchased credit deteriorated loans: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Commercial real estate |
|
$ |
117,460 |
|
|
|
1.7 |
% |
|
$ |
137,807 |
|
|
|
2.1 |
% |
|
$ |
39,000 |
|
|
|
0.7 |
% |
Residential real estate |
|
|
39,535 |
|
|
|
0.6 |
% |
|
|
42,510 |
|
|
|
0.6 |
% |
|
|
30,070 |
|
|
|
0.6 |
% |
Construction, land development, and
|
|
|
26,418 |
|
|
|
0.4 |
% |
|
|
25,331 |
|
|
|
0.4 |
% |
|
|
345 |
|
|
|
0.0 |
% |
Commercial and industrial |
|
|
18,100 |
|
|
|
0.3 |
% |
|
|
19,460 |
|
|
|
0.3 |
% |
|
|
1,745 |
|
|
|
0.0 |
% |
Installment and other |
|
|
118 |
|
|
|
0.0 |
% |
|
|
125 |
|
|
|
0.0 |
% |
|
|
134 |
|
|
|
0.0 |
% |
Total purchased credit deteriorated loans |
|
$ |
201,631 |
|
|
|
3.0 |
% |
|
$ |
225,233 |
|
|
|
3.4 |
% |
|
$ |
71,294 |
|
|
|
1.3 |
% |
Acquired non-credit-deteriorated loans
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Commercial real estate |
|
$ |
271,720 |
|
|
|
4.0 |
% |
|
$ |
275,476 |
|
|
|
4.1 |
% |
|
$ |
140,576 |
|
|
|
2.6 |
% |
Residential real estate |
|
|
204,589 |
|
|
|
3.0 |
% |
|
|
211,887 |
|
|
|
3.2 |
% |
|
|
27,975 |
|
|
|
0.5 |
% |
Construction, land development, and
|
|
|
85,553 |
|
|
|
1.3 |
% |
|
|
86,344 |
|
|
|
1.3 |
% |
|
|
— |
|
|
|
0.0 |
% |
Commercial and industrial |
|
|
113,673 |
|
|
|
1.7 |
% |
|
|
117,538 |
|
|
|
1.7 |
% |
|
|
20,793 |
|
|
|
0.4 |
% |
Installment and other |
|
|
166 |
|
|
|
0.0 |
% |
|
|
156 |
|
|
|
0.0 |
% |
|
|
85 |
|
|
|
0.0 |
% |
Leasing financing receivables |
|
|
426 |
|
|
|
0.0 |
% |
|
|
627 |
|
|
|
0.0 |
% |
|
|
1,703 |
|
|
|
0.0 |
% |
Total acquired non-credit-deteriorated
|
|
$ |
676,127 |
|
|
|
10.0 |
% |
|
$ |
692,028 |
|
|
|
10.3 |
% |
|
$ |
191,132 |
|
|
|
3.5 |
% |
Total loans and leases |
|
$ |
6,778,214 |
|
|
|
100.0 |
% |
|
$ |
6,684,306 |
|
|
|
100.0 |
% |
|
$ |
5,515,332 |
|
|
|
100.0 |
% |
Allowance for credit losses - loans and leases |
|
|
(102,366 |
) |
|
|
|
|
|
(101,686 |
) |
|
|
|
|
|
(90,465 |
) |
|
|
|
|||
Total loans and leases, net of allowance for
|
|
$ |
6,675,848 |
|
|
|
|
|
$ |
6,582,620 |
|
|
|
|
|
$ |
5,424,867 |
|
|
|
|
|||
The following table presents the balance and activity within the allowance for credit losses - loans and lease for the periods indicated:
|
|
Three Months Ended |
|
|||||||||
|
|
March 31, |
|
|
December 31, |
|
|
March 31, |
|
|||
(dollars in thousands) |
|
2024 |
|
|
2023 |
|
|
2023 |
|
|||
ACL - loans and leases, beginning of period |
|
$ |
101,686 |
|
|
$ |
105,696 |
|
|
$ |
81,924 |
|
Provision for credit losses - loans and leases |
|
|
6,891 |
|
|
|
8,176 |
|
|
|
9,712 |
|
Net charge-offs - loans and leases |
|
|
(6,211 |
) |
|
|
(12,186 |
) |
|
|
(1,171 |
) |
ACL - loans and leases, end of period |
|
$ |
102,366 |
|
|
$ |
101,686 |
|
|
$ |
90,465 |
|
Net charge-offs - loans and leases to average total
|
|
|
0.37 |
% |
|
|
0.73 |
% |
|
|
0.09 |
% |
Provision for credit losses - loans and leases
|
|
|
1.11 |
x |
|
|
0.67 |
x |
|
|
8.29 |
x |
BYLINE BANCORP, INC. AND SUBSIDIARIES |
||||||||||||||||||||
SELECTED BALANCE SHEET TABLES AND FINANCIAL RATIOS (unaudited) |
||||||||||||||||||||
|
||||||||||||||||||||
The following table presents the amounts of non-performing loans and leases and other real estate owned at the date indicated: |
||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
March 31, 2024 |
|
||||||||
|
|
|
|
|
|
|
|
|
|
|
Change from |
|
||||||||
(dollars in thousands) |
|
March 31,
|
|
|
December 31,
|
|
|
March 31,
|
|
|
December 31,
|
|
|
March 31,
|
|
|||||
Non-performing assets: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Non-accrual loans and leases |
|
$ |
67,899 |
|
|
$ |
64,107 |
|
|
$ |
46,536 |
|
|
|
5.9 |
% |
|
|
45.9 |
% |
Past due loans and leases 90 days or more
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
—% |
|
|
—% |
|
||
Total non-performing loans and leases |
|
$ |
67,899 |
|
|
$ |
64,107 |
|
|
$ |
46,536 |
|
|
|
5.9 |
% |
|
|
45.9 |
% |
Other real estate owned |
|
|
785 |
|
|
|
1,200 |
|
|
|
3,712 |
|
|
|
(34.6 |
)% |
|
|
(78.8 |
)% |
Total non-performing assets |
|
$ |
68,684 |
|
|
$ |
65,307 |
|
|
$ |
50,248 |
|
|
|
5.2 |
% |
|
|
36.7 |
% |
Total non-performing loans and leases as a
|
|
|
1.00 |
% |
|
|
0.96 |
% |
|
|
0.84 |
% |
|
|
|
|
|
|
||
Total non-performing assets as a percentage
|
|
|
0.73 |
% |
|
|
0.74 |
% |
|
|
0.67 |
% |
|
|
|
|
|
|
||
Allowance for credit losses - loans and lease
|
|
|
150.76 |
% |
|
|
158.62 |
% |
|
|
194.40 |
% |
|
|
|
|
|
|
||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Non-performing assets guaranteed by
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Non-accrual loans guaranteed |
|
$ |
7,138 |
|
|
$ |
4,154 |
|
|
$ |
2,335 |
|
|
|
71.8 |
% |
|
|
205.6 |
% |
Past due loans 90 days or more and still
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
—% |
|
|
—% |
|
||
Total non-performing loans guaranteed |
|
$ |
7,138 |
|
|
$ |
4,154 |
|
|
$ |
2,335 |
|
|
|
71.8 |
% |
|
|
205.6 |
% |
Total non-performing loans and leases
|
|
|
0.90 |
% |
|
|
0.90 |
% |
|
|
0.80 |
% |
|
|
|
|
|
|
||
Total non-performing assets not guaranteed
|
|
|
0.65 |
% |
|
|
0.69 |
% |
|
|
0.64 |
% |
|
|
|
|
|
|
||
The following table presents the composition of deposits at the dates indicated:
|
|
|
|
|
|
|
|
|
|
|
March 31, 2024 |
|
||||||||
|
|
|
|
|
|
|
|
|
|
|
Change from |
|
||||||||
(dollars in thousands) |
|
March 31,
|
|
|
December 31,
|
|
|
March 31,
|
|
|
December 31,
|
|
|
March 31,
|
|
|||||
Non-interest-bearing demand deposits |
|
$ |
1,851,727 |
|
|
$ |
1,905,876 |
|
|
$ |
1,952,045 |
|
|
|
(2.8 |
)% |
|
|
(5.1 |
)% |
Interest-bearing checking accounts |
|
|
687,142 |
|
|
|
577,609 |
|
|
|
560,837 |
|
|
|
19.0 |
% |
|
|
22.5 |
% |
Money market demand accounts |
|
|
2,263,819 |
|
|
|
2,266,030 |
|
|
|
1,453,688 |
|
|
|
(0.1 |
)% |
|
|
55.7 |
% |
Other savings |
|
|
524,890 |
|
|
|
542,532 |
|
|
|
590,231 |
|
|
|
(3.3 |
)% |
|
|
(11.1 |
)% |
Time deposits (below $250,000) |
|
|
1,594,290 |
|
|
|
1,520,082 |
|
|
|
1,089,785 |
|
|
|
4.9 |
% |
|
|
46.3 |
% |
Time deposits ($250,000 and above) |
|
|
428,334 |
|
|
|
364,870 |
|
|
|
166,066 |
|
|
|
17.4 |
% |
|
|
157.9 |
% |
Total deposits |
|
$ |
7,350,202 |
|
|
$ |
7,176,999 |
|
|
$ |
5,812,652 |
|
|
|
2.4 |
% |
|
|
26.5 |
% |
BYLINE BANCORP, INC. AND SUBSIDIARIES
RECONCILIATION OF NON-GAAP FINANCIAL MEASURES (unaudited)
Non-GAAP Financial Measures
This release contains certain financial information determined by methods other than in accordance with accounting principles generally accepted in the United States of America (“GAAP”). These measures include adjusted net income, adjusted diluted earnings per share, adjusted efficiency ratio, adjusted non-interest expense to average assets, tax-equivalent net interest margin, total revenue, non-interest income to total revenues, adjusted return on average stockholders’ equity, adjusted return on average assets, pre-tax pre-provision return on average assets, adjusted pre-tax pre-provision return on average assets, tangible book value per common share, tangible common equity to tangible assets, return on average tangible common stockholders' equity, and adjusted return on average tangible common stockholders' equity. Management believes that these non-GAAP financial measures provide useful information to management and investors that is supplementary to the Company’s financial condition, results of operations and cash flows computed in accordance with GAAP; however, management acknowledges that our non-GAAP financial measures have a number of limitations. As such, these disclosures should not be viewed as a substitute for results determined in accordance with GAAP financial measures that we and other companies use. Management also uses these measures for peer comparison. See below in the financial schedules included in this press release for a reconciliation of the non-GAAP financial measures to the comparable GAAP financial measures. Additionally, please refer to the Company’s Annual Report on Form 10-K for the detailed definitions of these non-GAAP financial measures.
|
|
As of or For the Three Months Ended |
|
|||||||||
|
|
March 31, |
|
|
December 31, |
|
|
March 31, |
|
|||
(dollars in thousands, except per share data) |
|
2024 |
|
|
2023 |
|
|
2023 |
|
|||
Net income and earnings per share excluding significant items: |
|
|
|
|
|
|
|
|
|
|||
Reported Net Income |
|
$ |
30,440 |
|
|
$ |
29,604 |
|
|
$ |
23,945 |
|
Significant items: |
|
|
|
|
|
|
|
|
|
|||
Impairment charges on assets held for sale and ROU assets |
|
|
194 |
|
|
|
1,981 |
|
|
|
20 |
|
Merger-related expenses |
|
|
— |
|
|
|
1,035 |
|
|
|
489 |
|
Tax benefit |
|
|
(52 |
) |
|
|
(793 |
) |
|
|
(56 |
) |
Adjusted Net Income |
|
$ |
30,582 |
|
|
$ |
31,827 |
|
|
$ |
24,398 |
|
Reported Diluted Earnings per Share |
|
$ |
0.70 |
|
|
$ |
0.68 |
|
|
$ |
0.64 |
|
Significant items: |
|
|
|
|
|
|
|
|
|
|||
Impairment charges on assets held for sale and ROU assets |
|
|
— |
|
|
|
0.05 |
|
|
|
— |
|
Merger-related expenses |
|
|
— |
|
|
|
0.02 |
|
|
|
0.01 |
|
Tax benefit |
|
|
— |
|
|
|
(0.02 |
) |
|
|
— |
|
Adjusted Diluted Earnings per Share |
|
$ |
0.70 |
|
|
$ |
0.73 |
|
|
$ |
0.65 |
|
BYLINE BANCORP, INC. AND SUBSIDIARIES |
||||||||||||
RECONCILIATION OF NON-GAAP FINANCIAL MEASURES (continued) (unaudited) |
||||||||||||
|
|
As of or For the Three Months Ended |
|
|||||||||
(dollars in thousands, except per share data, |
|
March 31, |
|
|
December 31, |
|
|
March 31, |
|
|||
ratios annualized, where applicable) |
|
2024 |
|
|
2023 |
|
|
2023 |
|
|||
Adjusted non-interest expense: |
|
|
|
|
|
|
|
|
|
|||
Non-interest expense |
|
$ |
53,809 |
|
|
$ |
53,584 |
|
|
$ |
48,800 |
|
Less: Significant items |
|
|
|
|
|
|
|
|
|
|||
Impairment charges on assets held for sale and ROU assets |
|
|
194 |
|
|
|
1,981 |
|
|
|
20 |
|
Merger-related expenses |
|
|
— |
|
|
|
1,035 |
|
|
|
489 |
|
Adjusted non-interest expense |
|
$ |
53,615 |
|
|
$ |
50,568 |
|
|
$ |
48,291 |
|
Adjusted non-interest expense excluding
|
|
|
|
|
|
|
|
|
|
|||
Adjusted non-interest expense |
|
$ |
53,615 |
|
|
$ |
50,568 |
|
|
$ |
48,291 |
|
Less: Amortization of intangible assets |
|
|
1,345 |
|
|
|
1,550 |
|
|
|
1,455 |
|
Adjusted non-interest expense excluding
|
|
$ |
52,270 |
|
|
$ |
49,018 |
|
|
$ |
46,836 |
|
Pre-tax pre-provision net income: |
|
|
|
|
|
|
|
|
|
|||
Pre-tax income |
|
$ |
40,562 |
|
|
$ |
39,969 |
|
|
$ |
32,238 |
|
Add: Provision for credit losses |
|
|
6,643 |
|
|
|
7,235 |
|
|
|
9,825 |
|
Pre-tax pre-provision net income |
|
$ |
47,205 |
|
|
$ |
47,204 |
|
|
$ |
42,063 |
|
Adjusted pre-tax pre-provision net income: |
|
|
|
|
|
|
|
|
|
|||
Pre-tax pre-provision net income |
|
$ |
47,205 |
|
|
$ |
47,204 |
|
|
$ |
42,063 |
|
Add: Impairment charges on assets held for sale
|
|
|
194 |
|
|
|
1,981 |
|
|
|
20 |
|
Add: Merger-related expenses |
|
|
— |
|
|
|
1,035 |
|
|
|
489 |
|
Adjusted pre-tax pre-provision net income |
|
$ |
47,399 |
|
|
$ |
50,220 |
|
|
$ |
42,572 |
|
Tax equivalent net interest income: |
|
|
|
|
|
|
|
|
|
|||
Net interest income |
|
$ |
85,541 |
|
|
$ |
86,285 |
|
|
$ |
75,718 |
|
Add: Tax-equivalent adjustment |
|
|
233 |
|
|
|
240 |
|
|
|
208 |
|
Net interest income, fully taxable equivalent |
|
$ |
85,774 |
|
|
$ |
86,525 |
|
|
$ |
75,926 |
|
Total revenue: |
|
|
|
|
|
|
|
|
|
|||
Net interest income |
|
$ |
85,541 |
|
|
$ |
86,285 |
|
|
$ |
75,718 |
|
Add: Non-interest income |
|
|
15,473 |
|
|
|
14,503 |
|
|
|
15,145 |
|
Total revenue |
|
$ |
101,014 |
|
|
$ |
100,788 |
|
|
$ |
90,863 |
|
Tangible common stockholders' equity: |
|
|
|
|
|
|
|
|
|
|||
Total stockholders' equity |
|
$ |
1,009,049 |
|
|
$ |
990,151 |
|
|
$ |
795,650 |
|
Less: Goodwill and other intangibles |
|
|
202,133 |
|
|
|
203,478 |
|
|
|
157,432 |
|
Tangible common stockholders' equity |
|
$ |
806,916 |
|
|
$ |
786,673 |
|
|
$ |
638,218 |
|
Tangible assets: |
|
|
|
|
|
|
|
|
|
|||
Total assets |
|
$ |
9,410,503 |
|
|
$ |
8,881,967 |
|
|
$ |
7,530,346 |
|
Less: Goodwill and other intangibles |
|
|
202,133 |
|
|
|
203,478 |
|
|
|
157,432 |
|
Tangible assets |
|
$ |
9,208,370 |
|
|
$ |
8,678,489 |
|
|
$ |
7,372,914 |
|
Average tangible common stockholders' equity: |
|
|
|
|
|
|
|
|
|
|||
Average total stockholders' equity |
|
$ |
998,806 |
|
|
$ |
935,197 |
|
|
$ |
784,289 |
|
Less: Average goodwill and other intangibles |
|
|
202,773 |
|
|
|
204,191 |
|
|
|
158,181 |
|
Average tangible common stockholders' equity |
|
$ |
796,033 |
|
|
$ |
731,006 |
|
|
$ |
626,108 |
|
Average tangible assets: |
|
|
|
|
|
|
|
|
|
|||
Average total assets |
|
$ |
9,030,941 |
|
|
$ |
8,787,636 |
|
|
$ |
7,345,151 |
|
Less: Average goodwill and other intangibles |
|
|
202,773 |
|
|
|
204,191 |
|
|
|
158,181 |
|
Average tangible assets |
|
$ |
8,828,168 |
|
|
$ |
8,583,445 |
|
|
$ |
7,186,970 |
|
Tangible net income available to common stockholders: |
|
|
|
|
|
|
|
|
|
|||
Net income available to common stockholders |
|
$ |
30,440 |
|
|
$ |
29,604 |
|
|
$ |
23,945 |
|
Add: After-tax intangible asset amortization |
|
|
986 |
|
|
|
1,138 |
|
|
|
1,066 |
|
Tangible net income available to common stockholders |
|
$ |
31,426 |
|
|
$ |
30,742 |
|
|
$ |
25,011 |
|
Adjusted tangible net income available to common
|
|
|
|
|
|
|
|
|
|
|||
Tangible net income available to common stockholders |
|
$ |
31,426 |
|
|
$ |
30,742 |
|
|
$ |
25,011 |
|
Impairment charges on assets held for sale and ROU assets |
|
|
194 |
|
|
|
1,981 |
|
|
|
20 |
|
Merger-related expenses |
|
|
— |
|
|
|
1,035 |
|
|
|
489 |
|
Tax benefit on significant items |
|
|
(52 |
) |
|
|
(793 |
) |
|
|
(56 |
) |
Adjusted tangible net income available to
|
|
$ |
31,568 |
|
|
$ |
32,965 |
|
|
$ |
25,464 |
|
BYLINE BANCORP, INC. AND SUBSIDIARIES |
||||||||||||
RECONCILIATION OF NON-GAAP FINANCIAL MEASURES (continued) (unaudited) |
||||||||||||
|
|
As of or For the Three Months Ended |
|
|||||||||
(dollars in thousands, except share and per share |
|
March 31, |
|
|
December 31, |
|
|
March 31, |
|
|||
data, ratios annualized, where applicable) |
|
2024 |
|
|
2023 |
|
|
2023 |
|
|||
Pre-tax pre-provision return on average assets: |
|
|
|
|
|
|
|
|
|
|||
Pre-tax pre-provision net income |
|
$ |
47,205 |
|
|
$ |
47,204 |
|
|
$ |
42,063 |
|
Average total assets |
|
|
9,030,941 |
|
|
|
8,787,636 |
|
|
|
7,345,151 |
|
Pre-tax pre-provision return on average assets |
|
|
2.10 |
% |
|
|
2.13 |
% |
|
|
2.32 |
% |
Adjusted pre-tax pre-provision return on average assets: |
|
|
|
|
|
|
|
|
|
|||
Adjusted pre-tax pre-provision net income |
|
$ |
47,399 |
|
|
$ |
50,220 |
|
|
$ |
42,572 |
|
Average total assets |
|
|
9,030,941 |
|
|
|
8,787,636 |
|
|
|
7,345,151 |
|
Adjusted pre-tax pre-provision return on average assets |
|
|
2.11 |
% |
|
|
2.27 |
% |
|
|
2.35 |
% |
Net interest margin, fully taxable equivalent: |
|
|
|
|
|
|
|
|
|
|||
Net interest income, fully taxable equivalent |
|
$ |
85,774 |
|
|
$ |
86,525 |
|
|
$ |
75,926 |
|
Total average interest-earning assets |
|
|
8,603,582 |
|
|
|
8,387,877 |
|
|
|
7,009,144 |
|
Net interest margin, fully taxable equivalent |
|
|
4.01 |
% |
|
|
4.09 |
% |
|
|
4.39 |
% |
Non-interest income to total revenues: |
|
|
|
|
|
|
|
|
|
|||
Non-interest income |
|
$ |
15,473 |
|
|
$ |
14,503 |
|
|
$ |
15,145 |
|
Total revenues |
|
|
101,014 |
|
|
|
100,788 |
|
|
|
90,863 |
|
Non-interest income to total revenues |
|
|
15.32 |
% |
|
|
14.39 |
% |
|
|
16.67 |
% |
Adjusted non-interest expense to average assets: |
|
|
|
|
|
|
|
|
|
|||
Adjusted non-interest expense |
|
$ |
53,615 |
|
|
$ |
50,568 |
|
|
$ |
48,291 |
|
Average total assets |
|
|
9,030,941 |
|
|
|
8,787,636 |
|
|
|
7,345,151 |
|
Adjusted non-interest expense to average assets |
|
|
2.39 |
% |
|
|
2.28 |
% |
|
|
2.67 |
% |
Adjusted efficiency ratio: |
|
|
|
|
|
|
|
|
|
|||
Adjusted non-interest expense excluding amortization of
|
|
$ |
52,270 |
|
|
$ |
49,018 |
|
|
$ |
46,836 |
|
Total revenues |
|
|
101,014 |
|
|
|
100,788 |
|
|
|
90,863 |
|
Adjusted efficiency ratio |
|
|
51.75 |
% |
|
|
48.64 |
% |
|
|
51.54 |
% |
Adjusted return on average assets: |
|
|
|
|
|
|
|
|
|
|||
Adjusted net income |
|
$ |
30,582 |
|
|
$ |
31,827 |
|
|
$ |
24,398 |
|
Average total assets |
|
|
9,030,941 |
|
|
|
8,787,636 |
|
|
|
7,345,151 |
|
Adjusted return on average assets |
|
|
1.36 |
% |
|
|
1.44 |
% |
|
|
1.35 |
% |
Adjusted return on average stockholders' equity: |
|
|
|
|
|
|
|
|
|
|||
Adjusted net income |
|
$ |
30,582 |
|
|
$ |
31,827 |
|
|
$ |
24,398 |
|
Average stockholders' equity |
|
|
998,806 |
|
|
|
935,197 |
|
|
|
784,289 |
|
Adjusted return on average stockholders' equity |
|
|
12.31 |
% |
|
|
13.50 |
% |
|
|
12.62 |
% |
Tangible common equity to tangible assets: |
|
|
|
|
|
|
|
|
|
|||
Tangible common equity |
|
$ |
806,916 |
|
|
$ |
786,673 |
|
|
$ |
638,218 |
|
Tangible assets |
|
|
9,208,370 |
|
|
|
8,678,489 |
|
|
|
7,372,914 |
|
Tangible common equity to tangible assets |
|
|
8.76 |
% |
|
|
9.06 |
% |
|
|
8.66 |
% |
Return on average tangible common stockholders' equity: |
|
|
|
|
|
|
|
|
|
|||
Tangible net income available to common stockholders |
|
$ |
31,426 |
|
|
$ |
30,742 |
|
|
$ |
25,011 |
|
Average tangible common stockholders' equity |
|
|
796,033 |
|
|
|
731,006 |
|
|
|
626,108 |
|
Return on average tangible common stockholders' equity |
|
|
15.88 |
% |
|
|
16.68 |
% |
|
|
16.20 |
% |
Adjusted return on average tangible common
|
|
|
|
|
|
|
|
|
|
|||
Adjusted tangible net income available to common
|
|
$ |
31,568 |
|
|
$ |
32,965 |
|
|
$ |
25,464 |
|
Average tangible common stockholders' equity |
|
|
796,033 |
|
|
|
731,006 |
|
|
|
626,108 |
|
Adjusted return on average tangible common
|
|
|
15.95 |
% |
|
|
17.89 |
% |
|
|
16.49 |
% |
Tangible book value per share: |
|
|
|
|
|
|
|
|
|
|||
Tangible common equity |
|
$ |
806,916 |
|
|
$ |
786,673 |
|
|
$ |
638,218 |
|
Common shares outstanding |
|
|
44,108,387 |
|
|
|
43,764,056 |
|
|
|
37,713,427 |
|
Tangible book value per share |
|
$ |
18.29 |
|
|
$ |
17.98 |
|
|
$ |
16.92 |
|
View source version on businesswire.com: https://www.businesswire.com/news/home/20240425586707/en/
Contacts
Investors / Media:
Brooks Rennie
Investor Relations Director
312-660-5805
brennie@bylinebank.com
