BY Byline Bancorp Inc

 

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 8-K

CURRENT REPORT

PURSUANT TO SECTION 13 OR 15(d)

OF THE SECURITIES EXCHANGE ACT OF 1934

Date of Report (Date of earliest event reported): July 25, 2024

BYLINE BANCORP, INC.

(Exact Name of Registrant as Specified in Its Charter)

Delaware

(State or Other Jurisdiction

of Incorporation)

001-38139		36-3012593
(Commission File Number)		(I.R.S. Employer Identification No.)
180 North LaSalle Street, Suite 300
Chicago, Illinois		60601
(Address of Principal Executive Offices)		(Zip Code)

(773) 244-7000

(Registrant’s Telephone Number, Including Area Code)

Not Applicable

(Former Name or Former Address, if Changed Since Last Report)

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):

☐	Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

☐	Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

☐	Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

☐	Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Securities registered pursuant to Section 12(b) of the Act:

Title of each class	Trading Symbol(s)	Name of each exchange on which registered
Common Stock	BY	New York Stock Exchange

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).

Emerging growth company ☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

 

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Item 2.02.	Results of Operations and Financial Condition.

On July 25, 2024, Byline Bancorp, Inc., (“Byline" or the "Company”) issued a press release announcing its financial results for the second quarter ended June 30, 2024. A copy of the press release is attached as Exhibit 99.1 and is incorporated herein by reference.

 

On July 25, 2024, the Company made available on its website a slide presentation regarding the Company’s second quarter 2024 financial results, which will be used as part of a publicly accessible conference call on July 26, 2024. A copy of the slide presentation is attached as Exhibit 99.2 and is incorporated herein by reference.

The information included in Item 2.02 this Current Report on Form 8-K (including the information in the attached exhibits 99.1 and 99.2) is being furnished and shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended, nor shall it be deemed incorporated by reference in any filing under the Securities Act of 1933, as amended, except as shall be expressly set forth by specific reference in any such filing.

 

 

Item 9.01.	Financial Statements and Exhibits.

(d) Exhibits.

Exhibit No.			Description
99.1				Second quarter 2024 financial results press release, dated July 25, 2024
99.2				Slide Presentation regarding second quarter 2024 financial results
104				Cover Page Interactive Data File (embedded within the Inline XBRL document)

 

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.

 

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SIGNATURE

Pursuant to the requirements of the Securities Exchange Act of 1934, as amended, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

				BYLINE BANCORP, INC.
Date: July 25, 2024				By:	/s/ Roberto R. Herencia
				Name:	Roberto R. Herencia
				Title:	Executive Chairman and Chief Executive Officer

 

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Byline Bancorp, Inc. Reports Second Quarter 2024 Financial Results

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

Chicago, IL, July 25, 2024 – Byline Bancorp, Inc. (NYSE: BY), today reported:

				For the quarter								Second Quarter Highlights (compared to 1Q24, unless otherwise specified)
			2Q24			1Q24			2Q23
Financial Results ($ in thousands)												• ROAA of 1.31%; PTPP ROAA of 2.03%(1)
	Net interest income		$	86,526		$	85,541		$	76,166
	Non-interest income			12,844			15,473			14,291		• TBV per share of $18.84(1), up 8.1% YoY
	Total Revenue(1)			99,370			101,014			90,457
	Non-interest expense (NIE)			53,210			53,809			49,328		• Named a "Best Company to Work For in the
	Pre-tax pre-provision net income (PTPP)(1)			46,160			47,205			41,129		Midwest" by US News and World Report
	Provision for credit losses			6,045			6,643			5,790
	Provision for income taxes			10,444			10,122			9,232		• Consolidated two branches, have reduced
	Net Income		$	29,671		$	30,440		$	26,107		branch footprint ~60% since 2013
Per Share												Income Statement
	Diluted EPS		$	0.68		$	0.70		$	0.70		• Net interest income of $86.5 million,
	Dividends declared per common share			0.09			0.09			0.09		up $985,000, or 1.2%
	Book value per share			23.38			22.88			21.56
	Tangible book value per share(1)			18.84			18.29			17.43		• Tax equivalent NIM of 3.99%(1)
Balance Sheet & Credit Quality ($ in thousands)												• NIE down 1.1%; NIE/AA 2.34%, down six bps
	Total deposits		$	7,347,181		$	7,350,202		$	5,917,092
	Total loans and leases			6,904,564			6,801,782			5,596,512		• Net gain on sales of loans of $6.0 million,
	Net charge-offs (NCO)			9,514			6,211			4,267		up $503,000, or 9.1%
	Allowance for credit losses (ACL)			99,730			102,366			92,665
	ACL to total loans and leases held for investment			1.45%			1.51%			1.66%		• Efficiency ratio of 52.19%(1)
Select Ratios (annualized where applicable)												Balance Sheet
	Efficiency ratio(1)			52.19%			51.94%			52.92%		• Total loans and leases grew $102.8 million,
	Return on average assets (ROAA)			1.31%			1.36%			1.41%		or 6.1%(2)
	Return on average stockholders' equity			11.83%			12.26%			12.99%
	Return on average tangible common equity(1)			15.27%			15.88%			16.78%		• Total assets grew $223.3 million, or 9.5%(2)
	Net Interest Margin (NIM)			3.98%			4.00%			4.32%
	Common equity to total assets			10.72%			10.72%			10.74%		• NPAs down $4.1 million, or 24.0%(2)
	Tangible common equity to tangible assets(1)			8.82%			8.76%			8.87%
	Common Equity Tier 1			10.84%			10.59%			10.58%		• Total deposits of $7.3 billion, flat QoQ

 

CEO/President Commentary

Roberto R. Herencia, Executive Chairman and CEO of Byline Bancorp, commented, "Our second quarter results remained strong, and we are pleased with our overall performance for the first half of the year. Our results continue to show the progress we are making in becoming the preeminent commercial bank in Chicago." Alberto J. Paracchini, President of Byline Bancorp, added, "We delivered another quarter of strong earnings, profitability, and continue to show discipline in managing expenses. We executed well on our commercial banking strategy driven by solid loan and relationship growth, which is benefiting from the contributions of new banking talent we've added over the past couple of years. I would like to thank all our employees, who again enabled our strong performance, for their dedication and hard work."

 

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Board Declares Cash Dividend of $0.09 per Share

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

STATEMENTS OF OPERATIONS HIGHLIGHTS

Net Interest Income

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

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

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

Provision for Credit Losses

The provision for credit losses was $6.0 million for the second quarter of 2024, a decrease of $598,000 compared to $6.6 million for the first quarter of 2024, mainly attributed to improvements in the collectively assessed portfolio, partially offset by an increase in the allocation for individually assessed government guaranteed loans. The provision for credit losses for the quarter is comprised of a provision for loan and lease losses of $6.9 million and a recapture of the provision for unfunded commitments of $833,000.

Non-interest Income

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

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

Non-interest Expense

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

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

Income Taxes

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

 

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STATEMENTS OF FINANCIAL CONDITION HIGHLIGHTS

Assets

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

Asset and Credit Quality

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

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

Deposits and Other Liabilities

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

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

Stockholders’ Equity

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

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Conference Call, Webcast and Slide Presentation

We will host a conference call and webcast at 9:00 a.m. Central Time on Friday, July 26, 2024, to discuss our quarterly financial results. Analysts and investors may participate in the question-and-answer session. The call can be accessed via telephone at (833) 470-1428; passcode 298462. A recorded replay can be accessed through August 9, 2024, by dialing (866) 813-9403; passcode: 804686.

A slide presentation relating to our second quarter 2024 results will be accessible prior to the conference call. The slide presentation and webcast of the conference call can be accessed on our investor relations website at www.bylinebancorp.com.

About Byline Bancorp, Inc.

Headquartered in Chicago, Byline Bancorp, Inc. is the parent company of Byline Bank, a full service commercial bank serving small- and medium-sized businesses, financial sponsors, and consumers. Byline Bank has approximately $9.6 billion in assets and operates 46 branch locations throughout the Chicago and Milwaukee metropolitan areas. Byline Bank offers a broad range of commercial and community banking products and services including small ticket equipment leasing solutions and is one of the top Small Business Administration lenders in the United States.

Forward-Looking Statements

This communication contains forward-looking statements within the meaning of the U.S. federal securities laws. Forward-looking statements include, without limitation, statements concerning plans, estimates, calculations, forecasts and projections with respect to the anticipated future performance of the Company. These statements are often, but not always, made through the use of words or phrases such as ‘‘may’’, ‘‘might’’, ‘‘should’’, ‘‘could’’, ‘‘predict’’, ‘‘potential’’, ‘‘believe’’, ‘‘expect’’, ‘‘continue’’, ‘‘will’’, ‘‘anticipate’’, ‘‘seek’’, ‘‘estimate’’, ‘‘intend’’, ‘‘plan’’, ‘‘projection’’, ‘‘would’’, ‘‘annualized’’, “target” and ‘‘outlook’’, or the negative version of those words or other comparable words or phrases of a future or forward-looking nature. Forward-looking statements involve estimates and known and unknown risks, and reflect various assumptions and involve elements of subjective judgment and analysis, which may or may not prove to be correct, and which are subject to uncertainties and contingencies outside the control of Byline and its respective affiliates, directors, employees and other representatives, which could cause actual results to differ materially from those presented in this communication.

No representations, warranties or guarantees are or will be made by Byline as to the reliability, accuracy or completeness of any forward-looking statements contained in this communication or that such forward-looking statements are or will remain based on reasonable assumptions. You should not place undue reliance on any forward-looking statements contained in this communication.

Certain risks and important factors that could affect Byline’s future results are identified in our Annual Report on Form 10-K and other reports we file with the Securities and Exchange Commission, including among other things under the heading “Risk Factors” in our Annual Report on Form 10-K for the year ended December 31, 2023. Any forward-looking statement speaks only as of the date on which it is made, and Byline undertakes no obligation to update any forward-looking statement, whether to reflect events or circumstances after the date on which the statement is made, to reflect new information or the occurrence of unanticipated events, or otherwise unless required under the federal securities laws.

Contacts:

Investors / Media:

Brooks Rennie

Investor Relations Director

312-660-5805

brennie@bylinebank.com

 

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BYLINE BANCORP, INC. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION (unaudited)

		June 30,				March 31,				June 30,
(dollars in thousands)		2024				2024				2023
ASSETS
Cash and due from banks		$	68,251			$	58,640			$	59,564
Interest bearing deposits with other banks			662,206				578,197				260,621
Cash and cash equivalents			730,457				636,837				320,185
Equity and other securities, at fair value			8,745				9,135				18,473
Securities available-for-sale, at fair value			1,386,827				1,379,147				1,125,700
Securities held-to-maturity, at amortized cost			606				1,156				2,158
Restricted stock, at cost			31,775				22,793				24,377
Loans held for sale			13,360				23,568				25,995
Loans and leases:
Loans and leases			6,891,204				6,778,214				5,570,517
Allowance for credit losses - loans and leases			(99,730	)			(102,366	)			(92,665	)
Net loans and leases			6,791,474				6,675,848				5,477,852
Servicing assets, at fair value			19,617				20,992				21,715
Premises and equipment, net			63,919				64,466				56,304
Goodwill and other intangible assets, net			200,788				202,133				155,977
Bank-owned life insurance			98,519				97,748				83,222
Deferred tax assets, net			48,888				53,029				66,895
Accrued interest receivable and other assets			238,840				223,651				196,837
Total assets		$	9,633,815			$	9,410,503			$	7,575,690
LIABILITIES AND STOCKHOLDERS’ EQUITY
LIABILITIES
Non-interest-bearing demand deposits		$	1,762,891			$	1,851,727			$	1,793,749
Interest-bearing deposits			5,584,290				5,498,475				4,123,343
Total deposits			7,347,181				7,350,202				5,917,092
Other borrowings			918,738				721,173				574,922
Subordinated notes, net			73,953				73,909				73,778
Junior subordinated debentures issued to    capital trusts, net			70,675				70,567				37,557
Accrued interest payable and other liabilities			190,254				185,603				158,399
Total liabilities			8,600,801				8,401,454				6,761,748
STOCKHOLDERS’ EQUITY
Common stock			452				452				391
Additional paid-in capital			710,792				708,844				599,718
Retained earnings			481,232				455,532				379,078
Treasury stock			(47,993	)			(48,869	)			(50,383	)
Accumulated other comprehensive loss, net of tax			(111,469	)			(106,910	)			(114,862	)
Total stockholders’ equity			1,033,014				1,009,049				813,942
Total liabilities and stockholders’ equity		$	9,633,815			$	9,410,503			$	7,575,690

 

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BYLINE BANCORP, INC. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF OPERATIONS (unaudited)

		Three Months Ended
		June 30,				March 31,				June 30,
(dollars in thousands, except per share data)		2024				2024				2023
INTEREST AND DIVIDEND INCOME
Interest and fees on loans and leases		$	126,523			$	123,792			$	99,134
Interest on securities			10,514				9,734				6,559
Other interest and dividend income			4,532				4,795				1,579
Total interest and dividend income			141,569				138,321				107,272
INTEREST EXPENSE
Deposits			47,603				45,962				24,723
Other borrowings			4,460				3,824				4,241
Subordinated notes and debentures			2,980				2,994				2,142
Total interest expense			55,043				52,780				31,106
Net interest income			86,526				85,541				76,166
PROVISION FOR CREDIT LOSSES			6,045				6,643				5,790
Net interest income after provision for   credit losses			80,481				78,898				70,376
NON-INTEREST INCOME
Fees and service charges on deposits			2,548				2,427				2,233
Loan servicing revenue			3,216				3,364				3,377
Loan servicing asset revaluation			(2,468	)			(703	)			(865	)
ATM and interchange fees			1,163				1,075				1,112
Change in fair value of equity securities, net			(390	)			392				193
Net gains on sales of loans			6,036				5,533				5,704
Wealth management and trust income			942				1,157				1,039
Other non-interest income			1,797				2,228				1,498
Total non-interest income			12,844				15,473				14,291
NON-INTEREST EXPENSE
Salaries and employee benefits			33,911				33,953				29,642
Occupancy and equipment expense, net			4,639				5,284				4,404
Loan and lease related expenses			741				685				488
Legal, audit, and other professional fees			3,708				2,719				3,675
Data processing			4,036				4,145				4,272
Net (gain) loss recognized on other real estate    owned and other related expenses			(62	)			(98	)			288
Other intangible assets amortization expense			1,345				1,345				1,455
Other non-interest expense			4,892				5,776				5,104
Total non-interest expense			53,210				53,809				49,328
INCOME BEFORE PROVISION FOR INCOME TAXES			40,115				40,562				35,339
PROVISION FOR INCOME TAXES			10,444				10,122				9,232
NET INCOME		$	29,671			$	30,440			$	26,107
EARNINGS PER COMMON SHARE
Basic		$	0.68			$	0.70			$	0.70
Diluted		$	0.68			$	0.70			$	0.70

 

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BYLINE BANCORP, INC. AND SUBSIDIARIES

SELECTED FINANCIAL DATA (unaudited)

	As of or For the Three Months Ended
(dollars in thousands, except share	June 30,				March 31,				June 30,
and per share data)	2024				2024				2023
Earnings per Common Share
Basic earnings per common share	$	0.68			$	0.70			$	0.70
Diluted earnings per common share	$	0.68			$	0.70			$	0.70
Adjusted diluted earnings per common share(1)(3)	$	0.68			$	0.70			$	0.73
Weighted average common shares outstanding (basic)		43,361,516				43,258,087				37,034,626
Weighted average common shares outstanding (diluted)		43,741,840				43,727,344				37,337,906
Common shares outstanding		44,180,829				44,108,387				37,752,002
Cash dividends per common share	$	0.09			$	0.09			$	0.09
Dividend payout ratio on common stock		13.24	%			12.86	%			12.86	%
Book value per common share	$	23.38			$	22.88			$	21.56
Tangible book value per common share(1)	$	18.84			$	18.29			$	17.43
Key Ratios and Performance Metrics   (annualized where applicable)
Net interest margin		3.98	%			4.00	%			4.32	%
Net interest margin, fully taxable equivalent (1)(4)		3.99	%			4.01	%			4.33	%
Average cost of deposits		2.63	%			2.56	%			1.70	%
Efficiency ratio(1)(2)		52.19	%			51.94	%			52.92	%
Adjusted efficiency ratio(1)(2)(3)		52.19	%			51.75	%			51.39	%
Non-interest income to total revenues(1)		12.93	%			15.32	%			15.80	%
Non-interest expense to average assets		2.34	%			2.40	%			2.67	%
Adjusted non-interest expense to average assets(1)(3)		2.34	%			2.39	%			2.60	%
Return on average stockholders' equity		11.83	%			12.26	%			12.99	%
Adjusted return on average stockholders' equity(1)(3)		11.83	%			12.31	%			13.56	%
Return on average assets		1.31	%			1.36	%			1.41	%
Adjusted return on average assets(1)(3)		1.31	%			1.36	%			1.48	%
Pre-tax pre-provision return on average assets(1)		2.03	%			2.10	%			2.23	%
Adjusted pre-tax pre-provision return on average assets(1)(3)		2.03	%			2.11	%			2.30	%
Return on average tangible common stockholders' equity(1)		15.27	%			15.88	%			16.78	%
Adjusted return on average tangible common   stockholders' equity(1)(3)		15.27	%			15.95	%			17.50	%
Non-interest-bearing deposits to total deposits		23.99	%			25.19	%			30.31	%
Loans and leases held for sale and loans and lease   held for investment to total deposits		93.98	%			92.54	%			94.58	%
Deposits to total liabilities		85.42	%			87.49	%			87.51	%
Deposits per branch	$	159,721			$	153,129			$	155,713
Asset Quality Ratios
Non-performing loans and leases to total loans and leases   held for investment, net before ACL		0.93	%			1.00	%			0.69	%
Total non-performing assets as a percentage    of total assets		0.67	%			0.73	%			0.54	%
ACL to total loans and leases held for investment, net before ACL		1.45	%			1.51	%			1.66	%
Net charge-offs (annualized) to average total loans and leases held for   investment, net before ACL - loans and leases		0.56	%			0.37	%			0.31	%
Capital Ratios
Common equity to total assets		10.72	%			10.72	%			10.74	%
Tangible common equity to tangible assets(1)		8.82	%			8.76	%			8.87	%
Leverage ratio		11.08	%			10.91	%			10.74	%
Common equity tier 1 capital ratio		10.84	%			10.59	%			10.58	%
Tier 1 capital ratio		11.86	%			11.62	%			11.22	%
Total capital ratio		13.86	%			13.66	%			13.52	%

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

(2) Represents non-interest expense less amortization of intangible assets divided by net interest income and non-interest income.

(3) Calculation excludes merger-related expenses and impairment charges on ROU assets.

(4) Interest income and rates include the effects of a tax equivalent adjustment to adjust tax exempt investment income on tax exempt investment securities to a fully taxable basis, assuming a federal income tax rate of 21%.

 

 

 

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BYLINE BANCORP, INC. AND SUBSIDIARIES

QUARTER-TO-DATE STATEMENT OF AVERAGE INTEREST-EARNING ASSETS AND AVERAGE INTEREST-BEARING LIABILITIES (unaudited)

	For the Three Months Ended
	June 30, 2024												March 31, 2024												June 30, 2023
(dollars in thousands)	Average Balance(5)				Interest Inc / Exp				Avg. Yield / Rate				Average Balance(5)				Interest Inc / Exp				Avg. Yield / Rate				Average Balance(5)				Interest Inc / Exp				Avg. Yield / Rate
ASSETS
Cash and cash equivalents	$	305,873			$	3,315				4.36	%		$	339,449			$	3,828				4.54	%		$	135,003			$	1,041				3.09	%
Loans and leases(1)		6,807,934				126,523				7.47	%			6,681,488				123,792				7.45	%			5,535,593				99,134				7.18	%
Taxable securities		1,473,000				10,869				2.97	%			1,422,661				9,822				2.78	%			1,250,780				6,324				2.03	%
Tax-exempt securities(2)		156,655				1,091				2.80	%			159,984				1,112				2.80	%			151,205				980				2.60	%
Total interest-earning assets	$	8,743,462			$	141,798				6.52	%		$	8,603,582			$	138,554				6.48	%		$	7,072,581			$	107,479				6.10	%
Allowance for credit losses -   loans and leases		(103,266	)											(102,256	)											(92,804	)
All other assets		500,540												529,615												424,122
TOTAL ASSETS	$	9,140,736											$	9,030,941											$	7,403,899
LIABILITIES AND STOCKHOLDERS’    EQUITY
Deposits
Interest checking	$	717,513			$	4,096				2.30	%		$	590,406			$	2,429				1.65	%		$	541,036			$	2,175				1.61	%
Money market accounts		2,270,231				19,978				3.54	%			2,237,324				19,660				3.53	%			1,534,463				10,799				2.82	%
Savings		514,192				194				0.15	%			531,912				197				0.15	%			575,254				220				0.15	%
Time deposits		1,951,448				23,335				4.81	%			1,992,357				23,676				4.78	%			1,328,679				11,529				3.48	%
Total interest-bearing   deposits		5,453,384				47,603				3.51	%			5,351,999				45,962				3.45	%			3,979,432				24,723				2.49	%
Other borrowings		521,545				4,439				3.42	%			472,644				3,824				3.25	%			509,419				4,241				3.34	%
Federal funds purchased		1,401				21				6.05	%			—				—				0.00	%			—				—				0.00	%
Subordinated notes and   debentures		144,548				2,980				8.29	%			144,387				2,994				8.34	%			111,255				2,142				7.72	%
Total borrowings		667,494				7,440				4.48	%			617,031				6,818				4.44	%			620,674				6,383				4.12	%
Total interest-bearing liabilities	$	6,120,878			$	55,043				3.62	%		$	5,969,030			$	52,780				3.56	%		$	4,600,106			$	31,106				2.71	%
Non-interest-bearing   demand deposits		1,817,133												1,874,322												1,848,538
Other liabilities		193,923												188,783												148,983
Total stockholders’ equity		1,008,802												998,806												806,272
TOTAL LIABILITIES AND    STOCKHOLDERS’ EQUITY	$	9,140,736											$	9,030,941											$	7,403,899
Net interest spread(3)										2.90	%											2.92	%											3.39	%
Net interest income, fully   taxable equivalent					$	86,755											$	85,774											$	76,373
Net interest margin, fully   taxable equivalent(2)(4)										3.99	%											4.01	%											4.33	%
Less: Tax-equivalent adjustment						229				0.01	%							233				0.01	%							207				0.01	%
Net interest income					$	86,526											$