Select Fourth Quarter 2022 Financial Highlights
- Net income of $24.4 million, or $0.65 per diluted share
- Net interest margin of 4.39%; up 36 bps from the previous quarter
- Pre-tax pre-provision return on average assets of 2.05%
- Return on average assets of 1.33%; Return on tangible common equity of 17.21%1
- Efficiency ratio of 55.53%
- Total loans and leases increased $160.0 million
- Total deposits increased $82.7 million to $5.7 billion
- Common Equity Tier 1 to risk weighted assets of 10.20%
Select Full Year 2022 Financial Highlights
- Net income of $88.0 million, or $2.34 per diluted share
- Pre-tax pre-provision return on average assets of 1.97%
- Return on average assets 1.25%; Return on tangible common equity 15.15%1
- Efficiency ratio of 54.99%
- Adopted ASU 2016-13 Financial Instruments - Credit Losses (Topic 326) as of January 1, 20222
(1) Represents non-GAAP financial measures. See “Reconciliation of non-GAAP Financial Measures” for a reconciliation of our non-GAAP measures to the most directly comparable GAAP financial measure.
(2) The previously reported 2022 quarterly financial statements have been recast to reflect the adoption of CECL.
Byline Bancorp, Inc. ("Byline", the “Company”, "we", "our", or "us") (NYSE: BY), the parent company of Byline Bank (the “Bank”), today reported net income of $24.4 million, or $0.65 per diluted share, for the fourth quarter of 2022 compared with net income of $20.4 million, or $0.55 per diluted share, for the third quarter of 2022, and net income of $17.2 million, or $0.45 per diluted share, for the fourth quarter 2021.
Roberto R. Herencia, Executive Chairman and Chief Executive Officer of Byline Bancorp, Inc., commented, “Byline executed its strategy well throughout the year and our focus on customers allowed us to experience solid loan and deposit growth despite a slowing economic environment. We remain committed to executing our strategy of disciplined organic growth in loans and deposits in order to drive higher profitability. We believe our pending acquisition of Inland Bancorp, Inc. will further enhance our position into other attractive Chicago metropolitan markets, provide an important source of stable, low-cost deposits, and further enhance the value of the Byline franchise. I want to thank the Byline employees, who enabled our strong performance for their dedication and hard work.”
Alberto J. Paracchini, President of Byline Bancorp, Inc. added, “We reported strong results in the fourth quarter and ended 2022 on a good note as we delivered positive operating leverage as a result of increased revenues of 4% while continuing to invest in our businesses. Our results were driven by growth in net interest income supported by loan and deposit growth and the benefit of rising interest rates. Our business units performed well during the quarter, and we have good momentum in our areas of strategic focus. As we enter 2023, we remain committed to delivering on our purpose to support new and existing customers, executing our strategy, and growing the value of our franchise.”
Company Adopts ASU 2016-13 Financial Instruments - Credit Losses (Topic 326)
In June 2016, the Financial Accounting Standards Board (“FASB”) issued ASU 2016-13 Financial Instruments - Credit Losses (Topic 326) on the recognition of credit losses, otherwise known as the current expected credit loss standard, or "CECL", which replaces the incurred loss impairment methodology with a methodology that reflects current expected credit losses. As an emerging growth company, we elected to delay the adoption of the standard in accordance with ASU No. 2019-10, Effective Dates, which delayed the effective date of the ASU for entities not classified as Public Business Entities. The Company’s EGC status expired during 2022, requiring CECL adoption be reflected in our December 31, 2022 financial statements and Form 10-K.
The Company adopted CECL on December 31, 2022, and has applied it retroactively to the period beginning January 1, 2022 using the modified retrospective method of accounting. Adoption of CECL includes both a $10.1 million retroactive equity adjustment to January 1, 2022 (Day 1) and a $1.7 million fourth quarter adjustment to earnings (net of tax) to account for the difference in provision for credit losses between CECL and the incurred loss methodology for the first three quarters of 2022. Results for reporting periods beginning after September 30, 2022 are presented under the new standard, while prior quarters previously reported are "Recast" as if the new standard had been applied since January 1, 2022. Refer to Appendix A for recast prior quarter financial information as a result of the adoption of the new standard. Ongoing impacts of the CECL methodology will be dependent upon changes in economic conditions and forecasts, originated and acquired loan portfolio composition, credit performance trends, portfolio duration, and other factors.
Board Declares Cash Dividend of $0.09 per Share
On January 24, 2023, the Company's Board of Directors declared a cash dividend of $0.09 per share, payable on February 21, 2023, to stockholders of record of the Company's common stock as of February 7, 2023.
Board Authorizes New Stock Repurchase Program
On December 7, 2022, the Company's Board of Directors approved a new stock repurchase program that authorizes the Company to purchase up to 1.25 million shares of the Company's outstanding common stock. The new program is effective January 1, 2023 until December 31, 2023. Under the previous stock repurchase program that expired on December 31, 2022, Byline repurchased 2,139,262 shares of the 2.5 million total shares authorized for repurchase, including 689,068 shares during 2022. The Company did not repurchase any shares during the fourth quarter of 2022.
STATEMENTS OF OPERATIONS
Net Interest Income
The following table presents the average interest-earning assets and average interest-bearing liabilities for the periods indicated. Net interest income and margin are adjusted to reflect tax-exempt interest income on a tax-equivalent basis using tax rates effective as of the end of the period:
|
For the Three Months Ended |
|
|||||||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
Recast |
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
|
December 31, 2022 |
|
|
September 30, 2022 |
|
|
December 31, 2021 |
|
|||||||||||||||||||||||||||
(dollars in thousands) |
Average
|
|
|
Interest
|
|
|
Avg.
|
|
|
Average
|
|
|
Interest
|
|
|
Avg.
|
|
|
Average
|
|
|
Interest
|
|
|
Avg.
|
|
|||||||||
ASSETS |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Cash and cash equivalents |
$ |
89,368 |
|
|
$ |
234 |
|
|
|
1.04 |
% |
|
$ |
77,522 |
|
|
$ |
210 |
|
|
|
1.08 |
% |
|
$ |
106,170 |
|
|
$ |
42 |
|
|
|
0.16 |
% |
Loans and leases(1) |
|
5,389,210 |
|
|
|
85,720 |
|
|
|
6.31 |
% |
|
|
5,217,779 |
|
|
$ |
72,634 |
|
|
|
5.52 |
% |
|
|
4,610,608 |
|
|
|
58,570 |
|
|
|
5.04 |
% |
Taxable securities |
|
1,288,750 |
|
|
|
7,043 |
|
|
|
2.17 |
% |
|
|
1,306,024 |
|
|
$ |
5,963 |
|
|
|
1.81 |
% |
|
|
1,288,969 |
|
|
|
5,111 |
|
|
|
1.57 |
% |
Tax-exempt securities(2) |
|
155,562 |
|
|
|
1,021 |
|
|
|
2.60 |
% |
|
|
162,591 |
|
|
$ |
1,083 |
|
|
|
2.64 |
% |
|
|
184,015 |
|
|
|
1,217 |
|
|
|
2.62 |
% |
Total interest-earning assets |
$ |
6,922,890 |
|
|
$ |
94,018 |
|
|
|
5.39 |
% |
|
$ |
6,763,916 |
|
|
$ |
79,890 |
|
|
|
4.69 |
% |
|
$ |
6,189,762 |
|
|
$ |
64,940 |
|
|
|
4.16 |
% |
Allowance for credit losses -
|
|
(81,815 |
) |
|
|
|
|
|
|
|
|
(74,383 |
) |
|
|
|
|
|
|
|
|
(59,144 |
) |
|
|
|
|
|
|
||||||
All other assets |
|
424,978 |
|
|
|
|
|
|
|
|
|
447,939 |
|
|
|
|
|
|
|
|
|
568,451 |
|
|
|
|
|
|
|
||||||
TOTAL ASSETS |
$ |
7,266,053 |
|
|
|
|
|
|
|
|
$ |
7,137,472 |
|
|
|
|
|
|
|
|
$ |
6,699,069 |
|
|
|
|
|
|
|
||||||
LIABILITIES AND STOCKHOLDERS’
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Deposits |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Interest checking |
$ |
596,627 |
|
|
$ |
1,902 |
|
|
|
1.27 |
% |
|
$ |
583,777 |
|
|
$ |
1,077 |
|
|
|
0.73 |
% |
|
$ |
659,841 |
|
|
$ |
236 |
|
|
|
0.14 |
% |
Money market accounts |
|
1,472,050 |
|
|
|
5,458 |
|
|
|
1.47 |
% |
|
|
1,391,923 |
|
|
|
3,358 |
|
|
|
0.96 |
% |
|
|
1,089,398 |
|
|
|
345 |
|
|
|
0.13 |
% |
Savings |
|
647,536 |
|
|
|
243 |
|
|
|
0.15 |
% |
|
|
673,966 |
|
|
|
247 |
|
|
|
0.15 |
% |
|
|
633,469 |
|
|
|
75 |
|
|
|
0.05 |
% |
Time deposits |
|
788,856 |
|
|
|
3,007 |
|
|
|
1.51 |
% |
|
|
687,124 |
|
|
|
1,289 |
|
|
|
0.74 |
% |
|
|
688,154 |
|
|
|
381 |
|
|
|
0.22 |
% |
Total interest-bearing
|
|
3,505,069 |
|
|
|
10,610 |
|
|
|
1.20 |
% |
|
|
3,336,790 |
|
|
|
5,971 |
|
|
|
0.71 |
% |
|
|
3,070,862 |
|
|
|
1,037 |
|
|
|
0.13 |
% |
Other borrowings |
|
514,517 |
|
|
|
4,598 |
|
|
|
3.55 |
% |
|
|
607,471 |
|
|
|
3,232 |
|
|
|
2.11 |
% |
|
|
385,787 |
|
|
|
330 |
|
|
|
0.34 |
% |
Subordinated notes and
|
|
110,947 |
|
|
|
1,992 |
|
|
|
7.12 |
% |
|
|
110,799 |
|
|
|
1,825 |
|
|
|
6.54 |
% |
|
|
110,341 |
|
|
|
1,589 |
|
|
|
5.71 |
% |
Total borrowings |
|
625,464 |
|
|
|
6,590 |
|
|
|
4.18 |
% |
|
|
718,270 |
|
|
|
5,057 |
|
|
|
2.79 |
% |
|
|
496,128 |
|
|
|
1,919 |
|
|
|
1.53 |
% |
Total interest-bearing liabilities |
$ |
4,130,533 |
|
|
$ |
17,200 |
|
|
|
1.65 |
% |
|
$ |
4,055,060 |
|
|
$ |
11,028 |
|
|
|
1.08 |
% |
|
$ |
3,566,990 |
|
|
$ |
2,956 |
|
|
|
0.33 |
% |
Non-interest-bearing
|
|
2,235,464 |
|
|
|
|
|
|
|
|
|
2,198,095 |
|
|
|
|
|
|
|
|
|
2,222,583 |
|
|
|
|
|
|
|
||||||
Other liabilities |
|
151,764 |
|
|
|
|
|
|
|
|
|
118,496 |
|
|
|
|
|
|
|
|
|
70,521 |
|
|
|
|
|
|
|
||||||
Total stockholders’ equity |
|
748,292 |
|
|
|
|
|
|
|
|
|
765,821 |
|
|
|
|
|
|
|
|
|
838,975 |
|
|
|
|
|
|
|
||||||
TOTAL LIABILITIES AND
|
$ |
7,266,053 |
|
|
|
|
|
|
|
|
$ |
7,137,472 |
|
|
|
|
|
|
|
|
$ |
6,699,069 |
|
|
|
|
|
|
|
||||||
Net interest spread(3) |
|
|
|
|
|
|
|
3.74 |
% |
|
|
|
|
|
|
|
|
3.61 |
% |
|
|
|
|
|
|
|
|
3.83 |
% |
||||||
Net interest income, fully
|
|
|
|
$ |
76,818 |
|
|
|
|
|
|
|
|
$ |
68,862 |
|
|
|
|
|
|
|
|
$ |
61,984 |
|
|
|
|
||||||
Net interest margin, fully
|
|
|
|
|
|
|
|
4.40 |
% |
|
|
|
|
|
|
|
|
4.04 |
% |
|
|
|
|
|
|
|
|
3.97 |
% |
||||||
Less: Tax-equivalent adjustment |
|
|
|
|
214 |
|
|
|
0.01 |
% |
|
|
|
|
|
227 |
|
|
|
0.01 |
% |
|
|
|
|
|
256 |
|
|
|
0.01 |
% |
|||
Net interest income |
|
|
|
$ |
76,604 |
|
|
|
|
|
|
|
|
$ |
68,635 |
|
|
|
|
|
|
|
|
$ |
61,728 |
|
|
|
|
||||||
Net interest margin(4) |
|
|
|
|
|
|
|
4.39 |
% |
|
|
|
|
|
|
|
|
4.03 |
% |
|
|
|
|
|
|
|
|
3.96 |
% |
||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Net loan accretion impact
|
|
|
|
$ |
369 |
|
|
|
0.02 |
% |
|
|
|
|
$ |
1,371 |
|
|
|
0.08 |
% |
|
|
|
|
$ |
1,450 |
|
|
|
0.09 |
% |
|||
(1) |
Loan and lease balances are net of deferred origination fees and costs and initial indirect costs. Non-accrual loans and leases are included in total loan and lease balances. |
(2) |
Interest income and rates include the effects of a tax equivalent adjustment to adjust tax exempt investment income on tax exempt investment securities to a fully taxable basis, assuming a federal income tax rate of 21%. |
(3) |
Represents the average rate earned on interest-earning assets minus the average rate paid on interest-bearing liabilities. |
(4) |
Represents net interest income (annualized) divided by total average earning assets. |
(5) |
Average balances are average daily balances. |
The following table presents net interest income for the periods indicated:
|
|
|
|
|
|
|
|
|
|
|
December 31, 2022 |
|
||||||||
|
|
Three Months Ended |
|
|
Change from |
|
||||||||||||||
|
|
|
|
|
Recast |
|
|
|
|
|
|
|
|
|
|
|||||
|
|
December 31, |
|
|
September 30, |
|
|
December 31, |
|
|
September 30, |
|
|
December 31, |
|
|||||
(dollars in thousands) |
|
2022 |
|
|
2022 |
|
|
2021 |
|
|
2022 |
|
|
2021 |
|
|||||
INTEREST AND DIVIDEND INCOME |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Interest and fees on loans and leases |
|
$ |
85,720 |
|
|
$ |
72,635 |
|
|
$ |
58,570 |
|
|
|
18.0 |
% |
|
|
46.4 |
% |
Interest on securities |
|
|
6,569 |
|
|
|
6,402 |
|
|
|
5,619 |
|
|
|
2.6 |
% |
|
|
16.9 |
% |
Other interest and dividend income |
|
|
1,515 |
|
|
|
626 |
|
|
|
495 |
|
|
|
141.9 |
% |
|
|
206.3 |
% |
Total interest and dividend income |
|
|
93,804 |
|
|
|
79,663 |
|
|
|
64,684 |
|
|
|
17.7 |
% |
|
|
45.0 |
% |
INTEREST EXPENSE |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Deposits |
|
|
10,610 |
|
|
|
5,971 |
|
|
|
1,037 |
|
|
|
77.7 |
% |
|
|
922.7 |
% |
Other borrowings |
|
|
4,598 |
|
|
|
3,232 |
|
|
|
330 |
|
|
|
42.2 |
% |
|
|
1296.1 |
% |
Subordinated notes and debentures |
|
|
1,992 |
|
|
|
1,825 |
|
|
|
1,589 |
|
|
|
9.1 |
% |
|
|
25.4 |
% |
Total interest expense |
|
|
17,200 |
|
|
|
11,028 |
|
|
|
2,956 |
|
|
|
56.0 |
% |
|
|
481.9 |
% |
Net interest income |
|
$ |
76,604 |
|
|
$ |
68,635 |
|
|
$ |
61,728 |
|
|
|
11.6 |
% |
|
|
24.1 |
% |
Net interest income for the fourth quarter of 2022 was $76.6 million, an increase of $8.0 million, or 11.6%, from the third quarter of 2022, driven mainly by the rising interest rate environment.
The increase in net interest income was primarily due to:
- An increase of $13.1 million in interest income and fees on loans and leases due to higher yields and growth in the originated loan and lease portfolio.
Partially offset by:
- An increase of $4.6 million in deposit interest expense mainly due to higher rates paid on deposits; and
- An increase of $1.4 million in interest expense on other borrowings due to increases in rates paid on FHLB advances.
Tax-equivalent net interest margin for the fourth quarter of 2022 was 4.40%, an increase of 36 basis points compared to the third quarter of 2022. Total net accretion income on acquired loans contributed two basis points to the net interest margin for the fourth quarter of 2022 compared to eight basis points for the third quarter of 2022, an increase of six basis points.
The average cost of total deposits was 0.73% for the fourth quarter of 2022, an increase of 30 basis points compared to the third quarter of 2022. Average non-interest-bearing demand deposits were 38.9% of average total deposits for the fourth quarter of 2022 compared to 39.7% during the third quarter of 2022.
Provision for Credit Losses
The provision for credit losses was $5.8 million for the fourth quarter of 2022, a decrease of $1.4 million compared to $7.2 million for the third quarter of 2022. Provision for credit losses is comprised of provision for loan and lease losses of $5.4 million and provision for unfunded commitments of $426,000. The decrease in provision during the fourth quarter of 2022 was primarily driven by changes to expected losses in the conventional loan portfolio.
Non-interest Income
The following table presents the components of non-interest income for the periods indicated:
|
|
|
|
|
|
|
|
|
|
|
December 31, 2022 |
|
||||||||
|
|
Three Months Ended |
|
|
Change from |
|
||||||||||||||
|
|
|
|
|
Recast |
|
|
|
|
|
|
|
|
|
|
|||||
|
|
December 31, |
|
|
September 30, |
|
|
December 31, |
|
|
September 30, |
|
|
December 31, |
|
|||||
(dollars in thousands) |
|
2022 |
|
|
2022 |
|
|
2021 |
|
|
2022 |
|
|
2021 |
|
|||||
NON-INTEREST INCOME |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Fees and service charges on deposits |
|
$ |
2,081 |
|
|
$ |
2,128 |
|
|
$ |
1,955 |
|
|
|
(2.2 |
)% |
|
|
6.4 |
% |
Loan servicing revenue |
|
|
3,293 |
|
|
|
3,422 |
|
|
|
3,392 |
|
|
|
(3.8 |
)% |
|
|
(2.9 |
)% |
Loan servicing asset revaluation |
|
|
(3,534 |
) |
|
|
(2,342 |
) |
|
|
(2,510 |
) |
|
|
50.8 |
% |
|
|
40.8 |
% |
ATM and interchange fees |
|
|
1,250 |
|
|
|
1,007 |
|
|
|
1,219 |
|
|
|
24.1 |
% |
|
|
2.5 |
% |
Net realized gains (losses) on securities available-for-sale |
|
|
— |
|
|
|
(2 |
) |
|
|
(21 |
) |
|
NM |
|
|
NM |
|
||
Change in fair value of equity securities, net |
|
|
710 |
|
|
|
(581 |
) |
|
|
(98 |
) |
|
NM |
|
|
NM |
|
||
Net gains on sales of loans |
|
|
5,509 |
|
|
|
5,580 |
|
|
|
12,924 |
|
|
|
(1.3 |
)% |
|
|
(57.4 |
)% |
Wealth management and trust income |
|
|
864 |
|
|
|
995 |
|
|
|
764 |
|
|
|
(13.3 |
)% |
|
|
13.1 |
% |
Other non-interest income |
|
|
1,282 |
|
|
|
1,836 |
|
|
|
1,389 |
|
|
|
(30.1 |
)% |
|
|
(7.6 |
)% |
Total non-interest income |
|
$ |
11,455 |
|
|
$ |
12,043 |
|
|
$ |
19,014 |
|
|
|
(4.9 |
)% |
|
|
(39.8 |
)% |
Non-interest income for the fourth quarter of 2022 was $11.5 million, a decrease of $588,000 or 4.9%, compared to $12.0 million for the third quarter of 2022.
The decrease in total non-interest income was primarily due to:
- An increase of $1.2 million in the downward valuation adjustment to the loan servicing asset, due to unfavorable fair value adjustments due to changes in the discount rates.
Partially offset by:
- An increase of $1.3 million in the change in fair value of equity securities, due to changes in the market value of securities.
During the fourth quarter of 2022, we sold $86.0 million of U.S. government guaranteed loans compared to $75.4 million during the third quarter of 2022.
Non-interest Expense
The following table presents the components of non-interest expense for the periods indicated:
|
|
|
|
|
|
|
|
|
|
|
December 31, 2022 |
|
||||||||
|
|
Three Months Ended |
|
|
Change from |
|
||||||||||||||
|
|
|
|
|
Recast |
|
|
|
|
|
|
|
|
|
|
|||||
|
|
December 31, |
|
|
September 30, |
|
|
December 31, |
|
|
September 30, |
|
|
December 31, |
|
|||||
(dollars in thousands) |
|
2022 |
|
|
2022 |
|
|
2021 |
|
|
2022 |
|
|
2021 |
|
|||||
NON-INTEREST EXPENSE |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Salaries and employee benefits |
|
$ |
31,808 |
|
|
$ |
29,587 |
|
|
$ |
28,850 |
|
|
|
7.5 |
% |
|
|
10.3 |
% |
Occupancy and equipment expense, net |
|
|
3,532 |
|
|
|
3,919 |
|
|
|
4,995 |
|
|
|
(9.9 |
)% |
|
|
(29.3 |
)% |
Impairment charge on assets held for sale |
|
|
372 |
|
|
|
— |
|
|
|
8,351 |
|
|
NM |
|
|
NM |
|
||
Loan and lease related expenses |
|
|
1,126 |
|
|
|
530 |
|
|
|
2,328 |
|
|
|
111.9 |
% |
|
|
(51.7 |
)% |
Legal, audit and other professional fees |
|
|
3,204 |
|
|
|
2,733 |
|
|
|
2,376 |
|
|
|
17.3 |
% |
|
|
34.9 |
% |
Data processing |
|
|
3,406 |
|
|
|
3,370 |
|
|
|
3,070 |
|
|
|
1.1 |
% |
|
|
11.0 |
% |
Net loss recognized on other real estate
|
|
|
221 |
|
|
|
275 |
|
|
|
26 |
|
|
|
(19.8 |
)% |
|
NM |
|
|
Other intangible assets amortization expense |
|
|
1,596 |
|
|
|
1,611 |
|
|
|
1,738 |
|
|
|
(0.9 |
)% |
|
|
(8.1 |
)% |
Other non-interest expense |
|
|
5,235 |
|
|
|
4,016 |
|
|
|
7,356 |
|
|
|
30.3 |
% |
|
|
(28.9 |
)% |
Total non-interest expense |
|
$ |
50,500 |
|
|
$ |
46,041 |
|
|
$ |
59,090 |
|
|
|
9.7 |
% |
|
|
(14.4 |
)% |
Non-interest expense for the fourth quarter of 2022 was $50.5 million, an increase of $4.5 million, or 9.7%, from $46.0 million for the third quarter of 2022.
The increase in total non-interest expense was primarily due to:
- An increase of $2.2 million in salaries and employee benefits mainly is due to increased incentive compensation and lower loan deferral costs due to lower originations during the quarter; and
- An increase of $1.2 million in other non-interest expense, which includes an increase in net losses of $480,000 in leasehold improvements, and increases in general expenses; and
- An increase of $596,000 in loan and lease related expenses mainly due to higher expenses associated with government guaranteed loans; and
- An increase of $471,000 in legal, audit and other professional fees primarily related to acquisition activities.
Partially offset by:
- A decrease of $387,000 in occupancy and equipment expense, net, mainly due to lower real estate tax expenses.
Our efficiency ratio was 55.53% for the fourth quarter of 2022 compared to 55.07% for the third quarter of 2022.
INCOME TAXES
We recorded income tax expense of $7.4 million during the fourth quarter of 2022, compared to $7.0 million during the third quarter of 2022. The effective tax rate was 23.2% and 25.6% for the fourth quarter of 2022 and third quarter of 2022, respectively. The decrease in the effective tax rate is primarily due to a decrease in the state income tax rate.
STATEMENTS OF FINANCIAL CONDITION
Total assets were $7.4 billion at December 31, 2022, an increase of $95.7 million compared to $7.3 billion at September 30, 2022.
The current quarter increase was primarily due to:
- An increase in net loans and leases of $143.9 million primarily due to growth in the loan and lease portfolio.
Partially offset by:
- A decrease in securities available-for-sale of $7.2 million primarily due to changes in market conditions.
The following table shows our allocation of the originated, acquired impaired, and acquired non-impaired loans and leases at the dates indicated:
|
|
|
|
|
|
|
|
Recast |
|
|
|
|
|
|
|
|||||||||
|
|
December 31, 2022 |
|
|
September 30, 2022 |
|
|
December 31, 2021 |
|
|||||||||||||||
(dollars in thousands) |
|
Amount |
|
|
% of Total |
|
|
Amount |
|
|
% of Total |
|
|
Amount |
|
|
% of Total |
|
||||||
Originated loans and leases |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Commercial real estate |
|
$ |
1,712,152 |
|
|
|
31.6 |
% |
|
$ |
1,659,218 |
|
|
|
31.5 |
% |
|
$ |
1,379,000 |
|
|
|
30.4 |
% |
Residential real estate |
|
|
426,226 |
|
|
|
7.9 |
% |
|
|
409,926 |
|
|
|
7.8 |
% |
|
|
379,796 |
|
|
|
8.4 |
% |
Construction, land development, and
|
|
|
438,617 |
|
|
|
8.1 |
% |
|
|
456,276 |
|
|
|
8.6 |
% |
|
|
323,886 |
|
|
|
7.1 |
% |
Commercial and industrial |
|
|
2,029,855 |
|
|
|
37.5 |
% |
|
|
1,938,714 |
|
|
|
36.8 |
% |
|
|
1,534,745 |
|
|
|
33.8 |
% |
Paycheck Protection Program |
|
|
761 |
|
|
|
0.0 |
% |
|
|
1,522 |
|
|
|
0.0 |
% |
|
|
123,712 |
|
|
|
2.7 |
% |
Installment and other |
|
|
1,410 |
|
|
|
0.0 |
% |
|
|
999 |
|
|
|
0.0 |
% |
|
|
940 |
|
|
|
0.0 |
% |
Leasing financing receivables |
|
|
521,689 |
|
|
|
9.6 |
% |
|
|
492,744 |
|
|
|
9.3 |
% |
|
|
352,247 |
|
|
|
7.8 |
% |
Total originated loans and leases |
|
$ |
5,130,710 |
|
|
|
94.7 |
% |
|
$ |
4,959,399 |
|
|
|
94.0 |
% |
|
$ |
4,094,326 |
|
|
|
90.2 |
% |
Acquired impaired loans |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Commercial real estate |
|
$ |
45,143 |
|
|
|
0.8 |
% |
|
$ |
49,649 |
|
|
|
0.9 |
% |
|
$ |
72,160 |
|
|
|
1.6 |
% |
Residential real estate |
|
|
32,228 |
|
|
|
0.6 |
% |
|
|
35,309 |
|
|
|
0.7 |
% |
|
|
49,401 |
|
|
|
1.1 |
% |
Construction, land development, and
|
|
|
372 |
|
|
|
0.0 |
% |
|
|
1,131 |
|
|
|
0.0 |
% |
|
|
1,312 |
|
|
|
0.0 |
% |
Commercial and industrial |
|
|
2,192 |
|
|
|
0.0 |
% |
|
|
2,345 |
|
|
|
0.1 |
% |
|
|
4,014 |
|
|
|
0.1 |
% |
Installment and other |
|
|
140 |
|
|
|
0.0 |
% |
|
|
149 |
|
|
|
0.0 |
% |
|
|
164 |
|
|
|
0.0 |
% |
Total acquired impaired loans |
|
$ |
80,075 |
|
|
|
1.4 |
% |
|
$ |
88,583 |
|
|
|
1.7 |
% |
|
$ |
127,051 |
|
|
|
2.8 |
% |
Acquired non-impaired loans and leases |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Commercial real estate |
|
$ |
152,193 |
|
|
|
2.8 |
% |
|
$ |
159,928 |
|
|
|
3.0 |
% |
|
$ |
214,588 |
|
|
|
4.7 |
% |
Residential real estate |
|
|
31,508 |
|
|
|
0.6 |
% |
|
|
36,480 |
|
|
|
0.7 |
% |
|
|
51,317 |
|
|
|
1.1 |
% |
Construction, land development, and
|
|
|
— |
|
|
|
0.0 |
% |
|
|
187 |
|
|
|
0.0 |
% |
|
|
201 |
|
|
|
0.1 |
% |
Commercial and industrial |
|
|
24,266 |
|
|
|
0.5 |
% |
|
|
27,249 |
|
|
|
0.5 |
% |
|
|
43,202 |
|
|
|
1.0 |
% |
Installment and other |
|
|
209 |
|
|
|
0.0 |
% |
|
|
216 |
|
|
|
0.0 |
% |
|
|
264 |
|
|
|
0.0 |
% |
Leasing financing receivables |
|
|
2,297 |
|
|
|
0.0 |
% |
|
|
3,084 |
|
|
|
0.1 |
% |
|
|
6,179 |
|
|
|
0.1 |
% |
Total acquired non-impaired loans
|
|
$ |
210,473 |
|
|
|
3.9 |
% |
|
$ |
227,144 |
|
|
|
4.3 |
% |
|
$ |
315,751 |
|
|
|
7.0 |
% |
Total loans and leases |
|
$ |
5,421,258 |
|
|
|
100.0 |
% |
|
$ |
5,275,126 |
|
|
|
100.0 |
% |
|
$ |
4,537,128 |
|
|
|
100.0 |
% |
Allowance for credit losses - loans and leases |
|
|
(81,924 |
) |
|
|
|
|
|
(79,704 |
) |
|
|
|
|
|
(55,012 |
) |
|
|
|
|||
Total loans and leases, net of allowance for
|
|
$ |
5,339,334 |
|
|
|
|
|
$ |
5,195,422 |
|
|
|
|
|
$ |
4,482,116 |
|
|
|
|
|||
ASSET QUALITY
Non-Performing Assets
The following table sets forth the amounts of non-performing loans and leases (excluding acquired impaired), other real estate owned, and accruing troubled debt restructured loans at the dates indicated:
|
|
|
|
|
|
|
|
|
|
|
December 31, 2022 |
|
||||||||
|
|
|
|
|
Recast |
|
|
|
|
|
Change from |
|
||||||||
(dollars in thousands) |
|
December 31,
|
|
|
September 30,
|
|
|
December 31,
|
|
|
September 30,
|
|
|
December 31,
|
|
|||||
Non-performing assets: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Non-accrual loans and leases |
|
$ |
36,027 |
|
|
$ |
41,942 |
|
|
$ |
23,130 |
|
|
|
(14.1 |
)% |
|
|
55.8 |
% |
Past due loans and leases 90 days or more
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
—% |
|
|
—% |
|
||
Total non-performing loans and leases |
|
$ |
36,027 |
|
|
$ |
41,942 |
|
|
$ |
23,130 |
|
|
|
(14.1 |
)% |
|
|
55.8 |
% |
Other real estate owned |
|
|
4,717 |
|
|
|
4,402 |
|
|
|
2,112 |
|
|
|
7.2 |
% |
|
|
123.3 |
% |
Total non-performing assets |
|
$ |
40,744 |
|
|
$ |
46,344 |
|
|
$ |
25,242 |
|
|
|
(12.1 |
)% |
|
|
61.4 |
% |
Accruing troubled debt restructured loans (1) |
|
$ |
719 |
|
|
$ |
1,113 |
|
|
$ |
1,927 |
|
|
|
(35.4 |
)% |
|
|
(62.7 |
)% |
Total non-performing loans and leases as a
|
|
|
0.66 |
% |
|
|
0.80 |
% |
|
|
0.51 |
% |
|
|
|
|
|
|
||
Total non-performing assets as a percentage
|
|
|
0.55 |
% |
|
|
0.64 |
% |
|
|
0.38 |
% |
|
|
|
|
|
|
||
Allowance for credit losses - loans and lease
|
|
|
227.40 |
% |
|
|
190.03 |
% |
|
|
237.84 |
% |
|
|
|
|
|
|
||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Non-performing assets guaranteed by
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Non-accrual loans guaranteed |
|
$ |
2,225 |
|
|
$ |
1,676 |
|
|
$ |
3,270 |
|
|
|
32.8 |
% |
|
|
(32.0 |
)% |
Past due loans 90 days or more and still
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
—% |
|
|
—% |
|
||
Total non-performing loans guaranteed |
|
$ |
2,225 |
|
|
$ |
1,676 |
|
|
$ |
3,270 |
|
|
|
32.8 |
% |
|
|
(32.0 |
)% |
Accruing troubled debt restructured loans
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
— |
|
|
—% |
|
|
—% |
|
||
Total non-performing loans and leases
|
|
|
0.62 |
% |
|
|
0.76 |
% |
|
|
0.44 |
% |
|
|
|
|
|
|
||
Total non-performing assets not guaranteed
|
|
|
0.52 |
% |
|
|
0.61 |
% |
|
|
0.33 |
% |
|
|
|
|
|
|
||
(1) |
Accruing troubled debt restructured loans are not included in total non-performing loans and leases or in non-performing assets. |
Variances in non-performing assets were:
- Non-performing loans and leases were $36.0 million at December 31, 2022, a decrease of $5.9 million from $41.9 million at September 30, 2022, primarily due to charge-offs of loans previously reserved for.
- Other real estate owned was $4.7 million at December 31, 2022, an increase of $315,000 from $4.4 million at September 30, 2022, primarily due to the transfer of one property.
Allowance for Credit Losses ("ACL") - Loans and Leases
The following table presents the balance and activity within the allowance for credit losses - loans and leases for the periods indicated:
|
|
Three Months Ended |
|
|||||||||
|
|
|
|
|
Recast |
|
|
|
|
|||
|
|
December 31, |
|
|
September 30, |
|
|
December 31, |
|
|||
(dollars in thousands) |
|
2022 |
|
|
2022 |
|
|
2021 |
|
|||
ACL - loans and leases, beginning of period |
|
$ |
79,704 |
|
|
$ |
74,048 |
|
|
$ |
60,598 |
|
Provision/(recapture) for credit losses - loans and leases |
|
|
5,399 |
|
|
|
7,447 |
|
|
|
(1,415 |
) |
Net charge-offs |
|
|
(3,179 |
) |
|
|
(1,791 |
) |
|
|
(4,171 |
) |
ACL - loans and leases, end of period |
|
$ |
81,924 |
|
|
$ |
79,704 |
|
|
$ |
55,012 |
|
|
|
|
|
|
|
|
|
|
|
|||
Net charge-offs to average total loans
|
|
|
0.23 |
% |
|
|
0.14 |
% |
|
|
0.36 |
% |
Provision/(recapture) for credit losses
|
|
|
1.70 |
x |
|
|
4.16 |
x |
|
(0.34)x |
|
|
Net charge-offs of loans and leases during the fourth quarter of 2022 were $3.2 million, or 0.23% of average loans and leases, on an annualized basis, an increase of $1.4 million compared to $1.8 million, or 0.14% of average loans and leases, during the third quarter of 2022, and a decrease of $1.1 million from $4.3 million or 0.36% of average loans and leases from the comparable period a year ago.
Net charge-offs for the fourth quarter of 2022 included $1.3 million in the unguaranteed portion of U.S. government guaranteed loans, while net charge-offs for the third quarter of 2022 and fourth quarter of 2021 included $1.9 million and $1.5 million, respectively, in the unguaranteed portion of U.S. government guaranteed loans.
Deposits and Other Liabilities
The following table presents the composition of deposits at the dates indicated:
|
|
|
|
|
|
|
|
|
|
December 31, 2022 |
|
||||||||
|
|
|
|
|
|
|
|
|
|
Change from |
|
||||||||
(dollars in thousands) |
December 31, 2022 |
|
|
September 30, 2022 |
|
|
December 31, 2021 |
|
|
September 30, 2022 |
|
|
December 31, 2021 |
|
|||||
Non-interest-bearing demand deposits |
$ |
2,138,645 |
|
|
$ |
2,142,183 |
|
|
$ |
2,158,420 |
|
|
|
(0.2 |
)% |
|
|
(0.9 |
)% |
Interest-bearing checking accounts |
|
592,098 |
|
|
|
616,139 |
|
|
|
572,426 |
|
|
|
(3.9 |
)% |
|
|
3.4 |
% |
Money market demand accounts |
|
1,415,653 |
|
|
|
1,485,815 |
|
|
|
1,106,272 |
|
|
|
(4.7 |
)% |
|
|
28.0 |
% |
Other savings |
|
625,798 |
|
|
|
669,734 |
|
|
|
638,218 |
|
|
|
(6.6 |
)% |
|
|
(1.9 |
)% |
Time deposits (below $250,000) |
|
762,250 |
|
|
|
586,198 |
|
|
|
532,589 |
|
|
|
30.0 |
% |
|
|
43.1 |
% |
Time deposits ($250,000 and above) |
|
160,677 |
|
|
|
112,387 |
|
|
|
147,122 |
|
|
|
43.0 |
% |
|
|
9.2 |
% |
Total deposits |
$ |
5,695,121 |
|
|
$ |
5,612,456 |
|
|
$ |
5,155,047 |
|
|
|
1.5 |
% |
|
|
10.5 |
% |
Total deposits increased to $5.7 billion at December 31, 2022 compared to $5.6 billion at September 30, 2022. Non-interest-bearing deposits were 37.6% and 38.2% of total deposits at December 31, 2022 and September 30, 2022, respectively.
The increase in deposits in the current quarter was due to:
- An increase in time deposits of $224.3 million, primarily due to promotional certificates of deposit.
Partially offset by:
- A decrease in money market demand accounts of $70.2 million, due to seasonal commercial outflows.
Total borrowings and other liabilities were $902.0 million at December 31, 2022, a decrease of $17.0 million from $919.0 million at September 30, 2022, primarily driven by decreases in Federal Home Loan Bank advances.
Stockholders’ Equity
Total stockholders’ equity was $765.8 million at December 31, 2022, an increase of $30.0 million from $735.8 million at September 30, 2022. The increase was primarily due to net income and a decrease in accumulated other comprehensive loss.
The following table presents actual regulatory capital dollar amounts and ratios of the Company and Byline Bank as of December 31, 2022:
|
|
Actual |
|
|
Minimum Capital
|
|
|
Required to be
|
|
|||||||||||||||
December 31, 2022 |
|
Amount |
|
|
Ratio |
|
|
Amount |
|
|
Ratio |
|
|
Amount |
|
|
Ratio |
|
||||||
Total capital to risk weighted assets: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Company |
|
$ |
900,806 |
|
|
|
13.00 |
% |
|
$ |
554,436 |
|
|
|
8.00 |
% |
|
N/A |
|
|
N/A |
|
||
Bank |
|
|
852,047 |
|
|
|
12.34 |
% |
|
|
552,507 |
|
|
|
8.00 |
% |
|
$ |
690,633 |
|
|
|
10.00 |
% |
Tier 1 capital to risk weighted assets: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Company |
|
$ |
751,887 |
|
|
|
10.85 |
% |
|
$ |
415,827 |
|
|
|
6.00 |
% |
|
N/A |
|
|
N/A |
|
||
Bank |
|
|
778,128 |
|
|
|
11.27 |
% |
|
|
414,380 |
|
|
|
6.00 |
% |
|
$ |
552,507 |
|
|
|
8.00 |
% |
Common Equity Tier 1 (CET1) to
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Company |
|
$ |
706,887 |
|
|
|
10.20 |
% |
|
$ |
311,870 |
|
|
|
4.50 |
% |
|
N/A |
|
|
N/A |
|
||
Bank |
|
|
778,128 |
|
|
|
11.27 |
% |
|
|
310,785 |
|
|
|
4.50 |
% |
|
$ |
448,912 |
|
|
|
6.50 |
% |
Tier 1 capital to average assets: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Company |
|
$ |
751,887 |
|
|
|
10.29 |
% |
|
$ |
292,258 |
|
|
|
4.00 |
% |
|
N/A |
|
|
N/A |
|
||
Bank |
|
|
778,128 |
|
|
|
10.67 |
% |
|
$ |
291,741 |
|
|
|
4.00 |
% |
|
$ |
364,676 |
|
|
|
5.00 |
% |
Capital ratios for the period presented are based on the Basel III regulatory capital framework as applied to our current business and operations, and are subject to, among other things, completion and filing of our regulatory reports and ongoing regulatory review and implementation guidance. The ratios above reflect the Company’s election to opt into the regulators’ joint CECL transition provision, which allows the Company to phase in the capital impact of the adoption of CECL over the next three years beginning January 1, 2022. Accordingly, capital ratios as of December 31, 2022 reflect 25% of the CECL impact.
Conference Call, Webcast and Slide Presentation
We will host a conference call and webcast at 9:00 a.m. Central Time on Friday, January 27, 2023 to discuss our quarterly financial results. Analysts and investors may participate in the question-and-answer session. The call can be accessed via telephone at (844) 200-6205; passcode 608025. A recorded replay can be accessed through February 10, 2023 by dialing (866) 813-9403; passcode: 817934.
A slide presentation relating to our fourth quarter 2022 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 $7.3 billion in assets and operates more than 30 full service branch locations throughout the Chicago and Milwaukee metropolitan areas. Byline Bank offers a broad range of commercial and retail banking products and services including small ticket equipment leasing solutions and is one of the top 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, 2021. Any forward-looking statement speaks only as of the date on which it is made, and Byline undertakes no obligation to update any forward-looking statement, whether to reflect events or circumstances after the date on which the statement is made, to reflect new information or the occurrence of unanticipated events, or otherwise unless required under the federal securities laws.
BYLINE BANCORP, INC. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION (unaudited) |
||||||||||||||||||||
|
|
|
|
|
Recast |
|
|
Recast |
|
|
Recast |
|
|
|
|
|||||
|
|
December 31, |
|
|
September 30, |
|
|
June 30, |
|
|
March 31, |
|
|
December 31, |
|
|||||
(dollars in thousands) |
|
2022 |
|
|
2022 |
|
|
2022 |
|
|
2022 |
|
|
2021 |
|
|||||
ASSETS |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Cash and due from banks |
|
$ |
62,274 |
|
|
$ |
56,546 |
|
|
$ |
58,844 |
|
|
$ |
48,015 |
|
|
$ |
35,247 |
|
Interest bearing deposits with other banks |
|
|
117,079 |
|
|
|
159,744 |
|
|
|
83,057 |
|
|
|
105,564 |
|
|
|
122,684 |
|
Cash and cash equivalents |
|
|
179,353 |
|
|
|
216,290 |
|
|
|
141,901 |
|
|
|
153,579 |
|
|
|
157,931 |
|
Equity and other securities, at fair value |
|
|
7,989 |
|
|
|
7,279 |
|
|
|
7,860 |
|
|
|
10,677 |
|
|
|
10,578 |
|
Securities available-for-sale, at fair value |
|
|
1,174,431 |
|
|
|
1,181,654 |
|
|
|
1,273,138 |
|
|
|
1,369,368 |
|
|
|
1,454,542 |
|
Securities held-to-maturity, at amortized cost |
|
|
2,705 |
|
|
|
3,877 |
|
|
|
3,880 |
|
|
|
3,882 |
|
|
|
3,885 |
|
Restricted stock, at cost |
|
|
28,202 |
|
|
|
27,077 |
|
|
|
30,002 |
|
|
|
13,977 |
|
|
|
22,002 |
|
Loans held for sale |
|
|
47,823 |
|
|
|
33,975 |
|
|
|
17,284 |
|
|
|
39,520 |
|
|
|
64,460 |
|
Loans and leases: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Loans and leases |
|
|
5,421,258 |
|
|
|
5,275,126 |
|
|
|
5,167,716 |
|
|
|
4,787,607 |
|
|
|
4,537,128 |
|
Allowance for credit losses - loans and leases |
|
|
(81,924 |
) |
|
|
(79,704 |
) |
|
|
(74,048 |
) |
|
|
(72,107 |
) |
|
|
(55,012 |
) |
Net loans and leases |
|
|
5,339,334 |
|
|
|
5,195,422 |
|
|
|
5,093,668 |
|
|
|
4,715,500 |
|
|
|
4,482,116 |
|
Servicing assets, at fair value |
|
|
19,172 |
|
|
|
21,127 |
|
|
|
22,155 |
|
|
|
24,497 |
|
|
|
23,744 |
|
Premises and equipment, net |
|
|
56,798 |
|
|
|
59,049 |
|
|
|
60,773 |
|
|
|
62,281 |
|
|
|
62,548 |
|
Other real estate owned, net |
|
|
4,717 |
|
|
|
4,402 |
|
|
|
4,749 |
|
|
|
2,221 |
|
|
|
2,112 |
|
Goodwill and other intangible assets, net |
|
|
158,887 |
|
|
|
160,484 |
|
|
|
162,094 |
|
|
|
163,962 |
|
|
|
165,558 |
|
Bank-owned life insurance |
|
|
82,093 |
|
|
|
81,592 |
|
|
|
81,100 |
|
|
|
80,604 |
|
|
|
80,039 |
|
Deferred tax assets, net |
|
|
68,213 |
|
|
|
95,831 |
|
|
|
82,412 |
|
|
|
71,355 |
|
|
|
50,329 |
|
Accrued interest receivable and other assets |
|
|
193,224 |
|
|
|
179,218 |
|
|
|
143,014 |
|
|
|
114,035 |
|
|
|
116,328 |
|
Total assets |
|
$ |
7,362,941 |
|
|
$ |
7,267,277 |
|
|
$ |
7,124,030 |
|
|
$ |
6,825,458 |
|
|
$ |
6,696,172 |
|
LIABILITIES AND STOCKHOLDERS’ EQUITY |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
LIABILITIES |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Non-interest-bearing demand deposits |
|
$ |
2,138,645 |
|
|
$ |
2,142,183 |
|
|
$ |
2,180,927 |
|
|
$ |
2,281,612 |
|
|
$ |
2,158,420 |
|
Interest-bearing deposits |
|
|
3,556,476 |
|
|
|
3,470,273 |
|
|
|
3,207,450 |
|
|
|
3,248,490 |
|
|
|
2,996,627 |
|
Total deposits |
|
|
5,695,121 |
|
|
|
5,612,456 |
|
|
|
5,388,377 |
|
|
|
5,530,102 |
|
|
|
5,155,047 |
|
Other borrowings |
|
|
640,399 |
|
|
|
653,954 |
|
|
|
748,092 |
|
|
|
311,450 |
|
|
|
519,723 |
|
Subordinated notes, net |
|
|
73,691 |
|
|
|
73,648 |
|
|
|
73,604 |
|
|
|
73,560 |
|
|
|
73,517 |
|
Junior subordinated debentures issued to
|
|
|
37,338 |
|
|
|
37,232 |
|
|
|
37,123 |
|
|
|
37,011 |
|
|
|
36,906 |
|
Accrued expenses and other liabilities |
|
|
150,576 |
|
|
|
154,182 |
|
|
|
121,185 |
|
|
|
95,675 |
|
|
|
74,597 |
|
Total liabilities |
|
|
6,597,125 |
|
|
|
6,531,472 |
|
|
|
6,368,381 |
|
|
|
6,047,798 |
|
|
|
5,859,790 |
|
STOCKHOLDERS’ EQUITY |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Preferred stock |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
10,438 |
|
Common stock |
|
|
389 |
|
|
|
389 |
|
|
|
388 |
|
|
|
388 |
|
|
|
387 |
|
Additional paid-in capital |
|
|
598,297 |
|
|
|
597,049 |
|
|
|
595,938 |
|
|
|
595,006 |
|
|
|
593,753 |
|
Retained earnings |
|
|
335,794 |
|
|
|
314,800 |
|
|
|
297,766 |
|
|
|
279,386 |
|
|
|
271,676 |
|
Treasury stock |
|
|
(51,114 |
) |
|
|
(51,535 |
) |
|
|
(47,181 |
) |
|
|
(40,732 |
) |
|
|
(31,570 |
) |
Accumulated other comprehensive loss, net of tax |
|
|
(117,550 |
) |
|
|
(124,898 |
) |
|
|
(91,262 |
) |
|
|
(56,388 |
) |
|
|
(8,302 |
) |
Total stockholders’ equity |
|
|
765,816 |
|
|
|
735,805 |
|
|
|
755,649 |
|
|
|
777,660 |
|
|
|
836,382 |
|
Total liabilities and stockholders’ equity |
|
$ |
7,362,941 |
|
|
$ |
7,267,277 |
|
|
$ |
7,124,030 |
|
|
$ |
6,825,458 |
|
|
$ |
6,696,172 |
|
BYLINE BANCORP, INC. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF OPERATIONS (unaudited) |
||||||||||||||||||||||||||||
|
|
Three Months Ended |
|
|
Year Ended |
|
||||||||||||||||||||||
|
|
|
|
|
Recast |
|
|
Recast |
|
|
Recast |
|
|
|
|
|
|
|
|
|
|
|||||||
(dollars in thousands, |
|
December 31, |
|
|
September 30, |
|
|
June 30, |
|
|
March 31, |
|
|
December 31, |
|
|
December 31, |
|
|
December 31, |
|
|||||||
except per share data) |
|
2022 |
|
|
2022 |
|
|
2022 |
|
|
2022 |
|
|
2021 |
|
|
2022 |
|
|
2021 |
|
|||||||
INTEREST AND DIVIDEND INCOME |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
Interest and fees on loans and leases |
|
$ |
85,720 |
|
|
$ |
72,635 |
|
|
$ |
59,919 |
|
|
$ |
55,138 |
|
|
$ |
58,570 |
|
|
$ |
273,412 |
|
|
$ |
222,993 |
|
Interest on securities |
|
|
6,569 |
|
|
|
6,402 |
|
|
|
6,264 |
|
|
|
6,155 |
|
|
|
5,619 |
|
|
|
25,390 |
|
|
|
23,601 |
|
Other interest and dividend income |
|
|
1,515 |
|
|
|
626 |
|
|
|
496 |
|
|
|
120 |
|
|
|
495 |
|
|
|
2,757 |
|
|
|
2,332 |
|
Total interest and dividend income |
|
|
93,804 |
|
|
|
79,663 |
|
|
|
66,679 |
|
|
|
61,413 |
|
|
|
64,684 |
|
|
|
301,559 |
|
|
|
248,926 |
|
INTEREST EXPENSE |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
Deposits |
|
|
10,610 |
|
|
|
5,971 |
|
|
|
2,128 |
|
|
|
1,087 |
|
|
|
1,037 |
|
|
|
19,796 |
|
|
|
4,502 |
|
Other borrowings |
|
|
4,598 |
|
|
|
3,232 |
|
|
|
1,097 |
|
|
|
395 |
|
|
|
330 |
|
|
|
9,322 |
|
|
|
1,663 |
|
Subordinated notes and debentures |
|
|
1,992 |
|
|
|
1,825 |
|
|
|
1,694 |
|
|
|
1,600 |
|
|
|
1,589 |
|
|
|
7,111 |
|
|
|
6,374 |
|
Total interest expense |
|
|
17,200 |
|
|
|
11,028 |
|
|
|
4,919 |
|
|
|
3,082 |
|
|
|
2,956 |
|
|
|
36,229 |
|
|
|
12,539 |
|
Net interest income |
|
|
76,604 |
|
|
|
68,635 |
|
|
|
61,760 |
|
|
|
58,331 |
|
|
|
61,728 |
|
|
|
265,330 |
|
|
|
236,387 |
|
PROVISION/(RECAPTURE) FOR CREDIT LOSSES |
|
|
5,826 |
|
|
|
7,208 |
|
|
|
4,286 |
|
|
|
6,559 |
|
|
|
(1,415 |
) |
|
|
23,879 |
|
|
|
973 |
|
Net interest income after
|
|
|
70,778 |
|
|
|
61,427 |
|
|
|
57,474 |
|
|
|
51,772 |
|
|
|
63,143 |
|
|
|
241,451 |
|
|
|
235,414 |
|
NON-INTEREST INCOME |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
Fees and service charges on deposits |
|
|
2,081 |
|
|
|
2,128 |
|
|
|
2,059 |
|
|
|
1,884 |
|
|
|
1,955 |
|
|
|
8,152 |
|
|
|
7,254 |
|
Loan servicing revenue |
|
|
3,293 |
|
|
|
3,422 |
|
|
|
3,384 |
|
|
|
3,380 |
|
|
|
3,392 |
|
|
|
13,479 |
|
|
|
12,693 |
|
Loan servicing asset revaluation |
|
|
(3,534 |
) |
|
|
(2,342 |
) |
|
|
(4,636 |
) |
|
|
(1,231 |
) |
|
|
(2,510 |
) |
|
|
(11,743 |
) |
|
|
(6,658 |
) |
ATM and interchange fees |
|
|
1,250 |
|
|
|
1,007 |
|
|
|
1,131 |
|
|
|
1,049 |
|
|
|
1,219 |
|
|
|
4,437 |
|
|
|
4,476 |
|
Net realized gains (losses) on securities
|
|
|
— |
|
|
|
(2 |
) |
|
|
52 |
|
|
|
— |
|
|
|
(21 |
) |
|
|
50 |
|
|
|
1,435 |
|
Change in fair value of equity
|
|
|
710 |
|
|
|
(581 |
) |
|
|
(697 |
) |
|
|
(35 |
) |
|
|
(98 |
) |
|
|
(603 |
) |
|
|
(62 |
) |
Net gains on sales of loans |
|
|
5,509 |
|
|
|
5,580 |
|
|
|
9,983 |
|
|
|
10,827 |
|
|
|
12,924 |
|
|
|
31,899 |
|
|
|
46,274 |
|
Wealth management and trust income |
|
|
864 |
|
|
|
995 |
|
|
|
900 |
|
|
|
1,048 |
|
|
|
764 |
|
|
|
3,807 |
|
|
|
3,069 |
|
Other non-interest income |
|
|
1,282 |
|
|
|
1,836 |
|
|
|
2,097 |
|
|
|
2,621 |
|
|
|
1,389 |
|
|
|
7,836 |
|
|
|
5,772 |
|
Total non-interest income |
|
|
11,455 |
|
|
|
12,043 |
|
|
|
14,273 |
|
|
|
19,543 |
|
|
|
19,014 |
|
|
|
57,314 |
|
|
|
74,253 |
|
NON-INTEREST EXPENSE |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
�� |
|
|
|
|
|||||||
Salaries and employee benefits |
|
|
31,808 |
|
|
|
29,587 |
|
|
|
27,697 |
|
|
|
28,959 |
|
|
|
28,850 |
|
|
|
118,051 |
|
|
|
101,222 |
|
Occupancy and equipment expense,
|
|
|
3,532 |
|
|
|
3,919 |
|
|
|
4,409 |
|
|
|
5,128 |
|
|
|
4,995 |
|
|
|
16,988 |
|
|
|
20,612 |
|
Impairment charge on assets
|
|
|
372 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
8,351 |
|
|
|
372 |
|
|
|
12,332 |
|
Loan and lease related expenses |
|
|
1,126 |
|
|
|
530 |
|
|
|
942 |
|
|
|
(891 |
) |
|
|
2,328 |
|
|
|
1,707 |
|
|
|
5,957 |
|
Legal, audit, and other
|
|
|
3,204 |
|
|
|
2,733 |
|
|
|
1,820 |
|
|
|
2,600 |
|
|
|
2,376 |
|
|
|
10,357 |
|
|
|
10,198 |
|
Data processing |
|
|
3,406 |
|
|
|
3,370 |
|
|
|
3,396 |
|
|
|
3,186 |
|
|
|
3,070 |
|
|
|
13,358 |
|
|
|
11,780 |
|
Net loss recognized on other real
|
|
|
221 |
|
|
|
275 |
|
|
|
158 |
|
|
|
54 |
|
|
|
26 |
|
|
|
708 |
|
|
|
1,078 |
|
Other intangible assets amortization
|
|
|
1,596 |
|
|
|
1,611 |
|
|
|
1,868 |
|
|
|
1,596 |
|
|
|
1,738 |
|
|
|
6,671 |
|
|
|
7,073 |
|
Other non-interest expense |
|
|
5,235 |
|
|
|
4,016 |
|
|
|
3,295 |
|
|
|
3,324 |
|
|
|
7,356 |
|
|
|
15,870 |
|
|
|
15,203 |
|
Total non-interest expense |
|
|
50,500 |
|
|
|
46,041 |
|
|
|
43,585 |
|
|
|
43,956 |
|
|
|
59,090 |
|
|
|
184,082 |
|
|
|
185,455 |
|
INCOME BEFORE PROVISION FOR
|
|
|
31,733 |
|
|
|
27,429 |
|
|
|
28,162 |
|
|
|
27,359 |
|
|
|
23,067 |
|
|
|
114,683 |
|
|
|
124,212 |
|
PROVISION FOR INCOME TAXES |
|
|
7,366 |
|
|
|
7,020 |
|
|
|
6,382 |
|
|
|
5,961 |
|
|
|
5,878 |
|
|
|
26,729 |
|
|
|
31,427 |
|
NET INCOME |
|
|
24,367 |
|
|
|
20,409 |
|
|
|
21,780 |
|
|
|
21,398 |
|
|
|
17,189 |
|
|
|
87,954 |
|
|
|
92,785 |
|
Dividends on preferred shares |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
196 |
|
|
|
196 |
|
|
|
196 |
|
|
|
783 |
|
INCOME AVAILABLE TO COMMON
|
|
$ |
24,367 |
|
|
$ |
20,409 |
|
|
$ |
21,780 |
|
|
$ |
21,202 |
|
|
$ |
16,993 |
|
|
$ |
87,758 |
|
|
$ |
92,002 |
|
EARNINGS PER COMMON SHARE |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
Basic |
|
$ |
0.66 |
|
|
$ |
0.55 |
|
|
$ |
0.59 |
|
|
$ |
0.57 |
|
|
$ |
0.46 |
|
|
$ |
2.37 |
|
|
$ |
2.45 |
|
Diluted |
|
$ |
0.65 |
|
|
$ |
0.55 |
|
|
$ |
0.58 |
|
|
$ |
0.56 |
|
|
$ |
0.45 |
|
|
$ |
2.34 |
|
|
$ |
2.40 |
|
BYLINE BANCORP, INC. AND SUBSIDIARIES SELECTED FINANCIAL DATA (unaudited) |
|||||||||||||||||||||||||||
|
As of or For the Three Months Ended |
|
|
As of or For the Twelve Months Ended |
|
||||||||||||||||||||||
|
|
|
|
Recast |
|
|
Recast |
|
|
Recast |
|
|
|
|
|
|
|
|
|
|
|||||||
(dollars in thousands, except share |
December 31, |
|
|
September 30, |
|
|
June 30, |
|
|
March 31, |
|
|
December 31, |
|
|
December 31, |
|
|
December 31, |
|
|||||||
and per share data) |
2022 |
|
|
2022 |
|
|
2022 |
|
|
2022 |
|
|
2021 |
|
|
2022 |
|
|
2021 |
|
|||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
Earnings per Common Share |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
Basic earnings per common share |
$ |
0.66 |
|
|
$ |
0.55 |
|
|
$ |
0.59 |
|
|
$ |
0.57 |
|
|
$ |
0.46 |
|
|
$ |
2.37 |
|
|
$ |
2.45 |
|
Diluted earnings per common share |
$ |
0.65 |
|
|
$ |
0.55 |
|
|
$ |
0.58 |
|
|
$ |
0.56 |
|
|
$ |
0.45 |
|
|
$ |
2.34 |
|
|
$ |
2.40 |
|
Adjusted diluted earnings per
|
$ |
0.67 |
|
|
$ |
0.55 |
|
|
$ |
0.58 |
|
|
$ |
0.56 |
|
|
$ |
0.69 |
|
|
$ |
2.36 |
|
|
$ |
2.71 |
|
Weighted average common shares
|
|
36,856,221 |
|
|
|
36,851,973 |
|
|
|
37,064,795 |
|
|
|
37,123,161 |
|
|
|
37,124,176 |
|
|
|
36,972,972 |
|
|
|
37,609,723 |
|
Weighted average common shares
|
|
37,360,113 |
|
|
|
37,371,159 |
|
|
|
37,612,268 |
|
|
|
38,042,822 |
|
|
|
37,999,401 |
|
|
|
37,476,120 |
|
|
|
38,369,067 |
|
Common shares outstanding |
|
37,492,775 |
|
|
|
37,465,902 |
|
|
|
37,669,102 |
|
|
|
37,811,582 |
|
|
|
37,713,903 |
|
|
|
37,492,775 |
|
|
|
37,713,903 |
|
Cash dividends per common share |
$ |
0.09 |
|
|
$ |
0.09 |
|
|
$ |
0.09 |
|
|
$ |
0.09 |
|
|
$ |
0.09 |
|
|
$ |
0.36 |
|
|
$ |
0.30 |
|
Dividend payout ratio on
|
|
13.85 |
% |
|
|
16.36 |
% |
|
|
15.52 |
% |
|
|
16.07 |
% |
|
|
20.00 |
% |
|
|
15.38 |
% |
|
|
12.50 |
% |
Tangible book value per
|
$ |
16.19 |
|
|
$ |
15.36 |
|
|
$ |
15.76 |
|
|
$ |
16.23 |
|
|
$ |
17.51 |
|
|
$ |
16.19 |
|
|
$ |
17.51 |
|
Key Ratios and Performance Metrics
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
Net interest margin, fully taxable
|
|
4.40 |
% |
|
|
4.04 |
% |
|
|
3.78 |
% |
|
|
3.80 |
% |
|
|
3.97 |
% |
|
|
4.01 |
% |
|
|
3.86 |
% |
Average cost of deposits |
|
0.73 |
% |
|
|
0.43 |
% |
|
|
0.16 |
% |
|
|
0.08 |
% |
|
|
0.08 |
% |
|
|
0.36 |
% |
|
|
0.09 |
% |
Efficiency ratio(2) |
|
55.53 |
% |
|
|
55.07 |
% |
|
|
54.87 |
% |
|
|
54.40 |
% |
|
|
71.03 |
% |
|
|
54.99 |
% |
|
|
57.42 |
% |
Adjusted efficiency ratio(1)(2)(3) |
|
54.50 |
% |
|
|
55.07 |
% |
|
|
54.87 |
% |
|
|
54.40 |
% |
|
|
55.61 |
% |
|
|
54.70 |
% |
|
|
52.14 |
% |
Non-interest income to total
|
|
13.01 |
% |
|
|
14.93 |
% |
|
|
18.77 |
% |
|
|
25.09 |
% |
|
|
23.55 |
% |
|
|
17.76 |
% |
|
|
23.90 |
% |
Non-interest expense to average assets |
|
2.76 |
% |
|
|
2.56 |
% |
|
|
2.51 |
% |
|
|
2.66 |
% |
|
|
3.50 |
% |
|
|
2.62 |
% |
|
|
2.79 |
% |
Adjusted non-interest expense to
|
|
2.71 |
% |
|
|
2.56 |
% |
|
|
2.51 |
% |
|
|
2.66 |
% |
|
|
2.76 |
% |
|
|
2.61 |
% |
|
|
2.54 |
% |
Return on average stockholders' equity |
|
12.92 |
% |
|
|
10.57 |
% |
|
|
11.35 |
% |
|
|
10.56 |
% |
|
|
8.13 |
% |
|
|
11.33 |
% |
|
|
11.31 |
% |
Adjusted return on average
|
|
13.34 |
% |
|
|
10.57 |
% |
|
|
11.35 |
% |
|
|
10.56 |
% |
|
|
12.42 |
% |
|
|
11.43 |
% |
|
|
12.77 |
% |
Return on average assets |
|
1.33 |
% |
|
|
1.13 |
% |
|
|
1.25 |
% |
|
|
1.30 |
% |
|
|
1.02 |
% |
|
|
1.25 |
% |
|
|
1.40 |
% |
Adjusted return on average assets(1)(3)(4) |
|
1.37 |
% |
|
|
1.13 |
% |
|
|
1.25 |
% |
|
|
1.30 |
% |
|
|
1.56 |
% |
|
|
1.26 |
% |
|
|
1.58 |
% |
Pre-tax pre-provision return on
|
|
2.05 |
% |
|
|
1.93 |
% |
|
|
1.87 |
% |
|
|
2.05 |
% |
|
|
1.28 |
% |
|
|
1.97 |
% |
|
|
1.88 |
% |
Adjusted pre-tax pre-provision return
|
|
2.10 |
% |
|
|
1.93 |
% |
|
|
1.87 |
% |
|
|
2.05 |
% |
|
|
2.02 |
% |
|
|
1.99 |
% |
|
|
2.13 |
% |
Return on average tangible common
|
|
17.21 |
% |
|
|
14.17 |
% |
|
|
15.31 |
% |
|
|
14.02 |
% |
|
|
10.94 |
% |
|
|
15.15 |
% |
|
|
15.17 |
% |
Adjusted return on average tangible
|
|
17.75 |
% |
|
|
14.17 |
% |
|
|
15.31 |
% |
|
|
14.02 |
% |
|
|
16.38 |
% |
|
|
15.28 |
% |
|
|
17.04 |
% |
Non-interest-bearing deposits to
|
|
37.55 |
% |
|
|
38.17 |
% |
|
|
40.47 |
% |
|
|
41.26 |
% |
|
|
41.87 |
% |
|
|
37.55 |
% |
|
|
41.87 |
% |
Loans and leases held for sale and
|
|
96.03 |
% |
|
|
94.59 |
% |
|
|
96.23 |
% |
|
|
87.29 |
% |
|
|
89.26 |
% |
|
|
96.03 |
% |
|
|
89.26 |
% |
Deposits to total liabilities |
|
86.33 |
% |
|
|
85.93 |
% |
|
|
84.61 |
% |
|
|
91.44 |
% |
|
|
87.97 |
% |
|
|
86.33 |
% |
|
|
87.97 |
% |
Deposits per branch |
$ |
149,872 |
|
|
$ |
147,696 |
|
|
$ |
141,799 |
|
|
$ |
125,684 |
|
|
$ |
117,160 |
|
|
$ |
149,872 |
|
|
$ |
117,160 |
|
Asset Quality Ratios |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
Non-performing loans and leases to
|
|
0.66 |
% |
|
|
0.80 |
% |
|
|
0.83 |
% |
|
|
0.69 |
% |
|
|
0.51 |
% |
|
|
0.66 |
% |
|
|
0.51 |
% |
Net charge-offs to average total loans
|
|
0.23 |
% |
|
|
0.12 |
% |
|
|
0.17 |
% |
|
|
0.07 |
% |
|
|
0.37 |
% |
|
|
0.32 |
% |
|
|
0.28 |
% |
Capital Ratios |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
Common equity to total assets |
|
10.40 |
% |
|
|
10.12 |
% |
|
|
10.61 |
% |
|
|
11.39 |
% |
|
|
12.33 |
% |
|
|
10.40 |
% |
|
|
12.33 |
% |
Tangible common equity to
|
|
8.42 |
% |
|
|
8.10 |
% |
|
|
8.53 |
% |
|
|
9.21 |
% |
|
|
10.11 |
% |
|
|
8.42 |
% |
|
|
10.11 |
% |
Leverage ratio |
|
10.29 |
% |
|
|
10.30 |
% |
|
|
10.34 |
% |
|
|
10.70 |
% |
|
|
10.89 |
% |
|
|
10.29 |
% |
|
|
10.89 |
% |
Common equity tier 1 capital ratio |
|
10.20 |
% |
|
|
10.24 |
% |
|
|
10.26 |
% |
|
|
10.75 |
% |
|
|
11.39 |
% |
|
|
10.20 |
% |
|
|
11.39 |
% |
Tier 1 capital ratio |
|
10.85 |
% |
|
|
10.91 |
% |
|
|
10.95 |
% |
|
|
11.49 |
% |
|
|
12.37 |
% |
|
|
10.85 |
% |
|
|
12.37 |
% |
Total capital ratio |
|
13.00 |
% |
|
|
13.02 |
% |
|
|
13.09 |
% |
|
|
13.72 |
% |
|
|
14.70 |
% |
|
|
13.00 |
% |
|
|
14.70 |
% |
(1) |
Represents a non-GAAP financial measure. See “Reconciliation of non-GAAP Financial Measures” for a reconciliation of our non-GAAP measures to the most directly comparable GAAP financial measure. |
(2) |
Represents non-interest expense less amortization of intangible assets divided by net interest income and non-interest income. |
(3) |
Calculation excludes impairment charges. |
(4) |
Represents the remaining net unaccreted discount as a result of applying the fair value adjustment at the time of the business combination on acquired loans. |
(5) |
Interest income and rates include the effects of a tax equivalent adjustment to adjust tax exempt investment income on tax exempt investment securities to a fully taxable basis, assuming a federal income tax rate of 21%. |
BYLINE BANCORP, INC. AND SUBSIDIARIES YEAR-TO-DATE STATEMENT OF AVERAGE INTEREST-EARNING ASSETS AND AVERAGE INTEREST-BEARING LIABILITIES (unaudited) |
||||||||||||||||||||||||
|
|
For the Year Ended December 31, |
|
|||||||||||||||||||||
|
|
2022 |
|
|
2021 |
|
||||||||||||||||||
(dollars in thousands) |
|
Average
|
|
|
Interest
|
|
|
Average
|
|
|
Average
|
|
|
Interest
|
|
|
Average
|
|
||||||
ASSETS |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Cash and cash equivalents |
|
$ |
76,978 |
|
|
$ |
547 |
|
|
|
0.71 |
% |
|
$ |
69,338 |
|
|
$ |
117 |
|
|
|
0.17 |
% |
Loans and leases(1) |
|
|
5,073,288 |
|
|
|
273,412 |
|
|
|
5.39 |
% |
|
|
4,518,836 |
|
|
|
222,993 |
|
|
|
4.93 |
% |
Taxable securities |
|
|
1,316,147 |
|
|
|
24,156 |
|
|
|
1.84 |
% |
|
|
1,376,045 |
|
|
|
21,909 |
|
|
|
1.59 |
% |
Tax-exempt securities(2) |
|
|
164,051 |
|
|
|
4,359 |
|
|
|
2.66 |
% |
|
|
184,622 |
|
|
|
4,946 |
|
|
|
2.68 |
% |
Total interest-earning assets |
|
$ |
6,630,464 |
|
|
$ |
302,474 |
|
|
|
4.56 |
% |
|
$ |
6,148,841 |
|
|
$ |
249,965 |
|
|
|
4.07 |
% |
Allowance for credit losses - loans and leases |
|
|
(74,233 |
) |
|
|
|
|
|
|
|
|
(63,351 |
) |
|
|
|
|
|
|
||||
All other assets |
|
|
462,548 |
|
|
|
|
|
|
|
|
|
556,641 |
|
|
|
|
|
|
|
||||
TOTAL ASSETS |
|
$ |
7,018,779 |
|
|
|
|
|
|
|
|
$ |
6,642,131 |
|
|
|
|
|
|
|
||||
LIABILITIES AND STOCKHOLDERS’
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Deposits |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Interest checking |
|
$ |
593,903 |
|
|
$ |
3,572 |
|
|
|
0.60 |
% |
|
$ |
622,147 |
|
|
$ |
883 |
|
|
|
0.14 |
% |
Money market accounts |
|
|
1,357,371 |
|
|
|
10,484 |
|
|
|
0.77 |
% |
|
|
1,073,970 |
|
|
|
1,285 |
|
|
|
0.12 |
% |
Savings |
|
|
658,968 |
|
|
|
649 |
|
|
|
0.10 |
% |
|
|
610,953 |
|
|
|
289 |
|
|
|
0.05 |
% |
Time deposits |
|
|
691,650 |
|
|
|
5,091 |
|
|
|
0.74 |
% |
|
|
722,974 |
|
|
|
2,045 |
|
|
|
0.28 |
% |
Total interest-bearing deposits |
|
|
3,301,892 |
|
|
|
19,796 |
|
|
|
0.60 |
% |
|
|
3,030,044 |
|
|
|
4,502 |
|
|
|
0.15 |
% |
Other borrowings |
|
|
479,004 |
|
|
|
9,322 |
|
|
|
1.95 |
% |
|
|
525,078 |
|
|
|
1,663 |
|
|
|
0.32 |
% |
Subordinated notes and debentures |
|
|
110,723 |
|
|
|
7,111 |
|
|
|
6.42 |
% |
|
|
110,108 |
|
|
|
6,374 |
|
|
|
5.79 |
% |
Total borrowings |
|
|
589,727 |
|
|
|
16,433 |
|
|
|
2.79 |
% |
|
|
635,186 |
|
|
|
8,037 |
|
|
|
1.27 |
% |
Total interest-bearing liabilities |
|
$ |
3,891,619 |
|
|
$ |
36,229 |
|
|
|
0.93 |
% |
|
$ |
3,665,230 |
|
|
$ |
12,539 |
|
|
|
0.34 |
% |
Non-interest-bearing demand deposits |
|
|
2,236,615 |
|
|
|
|
|
|
|
|
|
2,085,454 |
|
|
|
|
|
|
|
||||
Other liabilities |
|
|
114,320 |
|
|
|
|
|
|
|
|
|
71,430 |
|
|
|
|
|
|
|
||||
Total stockholders’ equity |
|
|
776,225 |
|
|
|
|
|
|
|
|
|
820,017 |
|
|
|
|
|
|
|
||||
TOTAL LIABILITIES AND
|
|
$ |
7,018,779 |
|
|
|
|
|
|
|
|
$ |
6,642,131 |
|
|
|
|
|
|
|
||||
Net interest spread(3) |
|
|
|
|
|
|
|
|
3.63 |
% |
|
|
|
|
|
|
|
|
3.73 |
% |
||||
Net interest income, fully
|
|
|
|
|
$ |
266,245 |
|
|
|
|
|
|
|
|
$ |
237,426 |
|
|
|
|
||||
Net interest margin, fully
|
|
|
|
|
|
|
|
|
4.01 |
% |
|
|
|
|
|
|
|
|
3.86 |
% |
||||
Less: Tax-equivalent adjustment |
|
|
|
|
|
915 |
|
|
|
0.01 |
% |
|
|
|
|
|
1,039 |
|
|
|
0.02 |
% |
||
Net interest income |
|
|
|
|
$ |
265,330 |
|
|
|
|
|
|
|
|
$ |
236,387 |
|
|
|
|
||||
Net interest margin(4) |
|
|
|
|
|
|
|
|
4.00 |
% |
|
|
|
|
|
|
|
|
3.84 |
% |
||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Net loan accretion impact on margin |
|
|
|
|
$ |
4,555 |
|
|
|
0.07 |
% |
|
|
|
|
$ |
6,451 |
|
|
|
0.10 |
% |
||
(1) |
Loan and lease balances are net of deferred origination fees and costs and initial indirect costs. Non-accrual loans and leases are included in total loan and lease balances. |
(2) |
Interest income and rates include the effects of a tax equivalent adjustment to adjust tax exempt investment income on tax exempt investment securities to a fully taxable basis, 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
APPENDIX A - IMPACT OF THE ADOPTION OF CECL (unaudited)
The following tables have been included to provide additional information regarding the Company’s adoption of the new CECL accounting standard. The Company adopted CECL on December 31, 2022 and retroactively applied it to the period beginning January 1, 2022 using the modified retrospective method of accounting. The first table reflects the adoption adjustments for CECL that were made to the January 1, 2022 balances for key balance sheet accounts.
|
|
January 1, 2022 |
|
|||||||||
(dollars in thousands) |
|
Pre-CECL Adoption |
|
|
Impact of CECL Adoption |
|
|
As Reported under CECL |
|
|||
Balance Sheet: |
|
|
|
|
|
|
|
|
|
|||
ASSETS |
|
|
|
|
|
|
|
|
|
|||
Allowance for credit losses - loans and leases |
|
$ |
55,012 |
|
|
$ |
12,168 |
|
|
$ |
67,180 |
|
Deferred tax assets, net |
|
|
50,329 |
|
|
|
3,679 |
|
|
|
54,008 |
|
LIABILITIES |
|
|
|
|
|
|
|
|
|
|||
Allowance for credit losses on unfunded commitments |
|
$ |
1,403 |
|
|
$ |
1,595 |
|
|
$ |
2,998 |
|
EQUITY |
|
|
|
|
|
|
|
|
|
|||
Retained earnings |
|
$ |
271,676 |
|
|
$ |
(10,097 |
) |
|
$ |
261,579 |
|
The second table presents the impact of CECL on 2022 quarters previously reported using the incurred loss method of accounting. The table includes adjustments made to key balance sheet and income statement accounts to reflect how the balances would have been reflected had CECL been in effect for the full year.
|
|
Three Months Ended |
|
|||||||||||||||||||||||||||||||||
|
|
March 31, 2022 |
|
|
June 30, 2022 |
|
|
September 30, 2022 |
|
|||||||||||||||||||||||||||
(dollars in thousands) |
|
As Reported |
|
|
Adjustment |
|
|
Recast |
|
|
As Reported |
|
|
Adjustment |
|
|
Recast |
|
|
As Reported |
|
|
Adjustment |
|
|
Recast |
|
|||||||||
Balance Sheet: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
ASSETS |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Loans and leases |
|
$ |
4,789,068 |
|
|
$ |
(1,461 |
) |
|
$ |
4,787,607 |
|
|
$ |
5,168,071 |
|
|
$ |
(355 |
) |
|
$ |
5,167,716 |
|
|
$ |
5,275,471 |
|
|
$ |
(345 |
) |
|
$ |
5,275,126 |
|
Allowance for credit losses
|
|
|
(59,458 |
) |
|
|
(12,649 |
) |
|
|
(72,107 |
) |
|
|
(62,436 |
) |
|
|
(11,612 |
) |
|
|
(74,048 |
) |
|
|
(64,655 |
) |
|
|
(15,049 |
) |
|
|
(79,704 |
) |
Deferred tax assets, net |
|
|
67,335 |
|
|
|
4,020 |
|
|
|
71,355 |
|
|
|
78,950 |
|
|
|
3,462 |
|
|
|
82,412 |
|
|
|
91,532 |
|
|
|
4,299 |
|
|
|
95,831 |
|
Accrued interest receivable
|
|
|
113,123 |
|
|
|
912 |
|
|
|
114,035 |
|
|
|
142,196 |
|
|
|
818 |
|
|
|
143,014 |
|
|
|
178,433 |
|
|
|
785 |
|
|
|
179,218 |
|
LIABILITIES |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Allowance for credit losses
|
|
|
2,003 |
|
|
|
1,832 |
|
|
|
3,835 |
|
|
|
2,191 |
|
|
|
1,825 |
|
|
|
4,016 |
|
|
|
2,327 |
|
|
|
1,450 |
|
|
|
3,777 |
|
EQUITY |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Retained earnings |
|
|
290,397 |
|
|
|
(11,011 |
) |
|
|
279,386 |
|
|
|
307,278 |
|
|
|
(9,512 |
) |
|
|
297,766 |
|
|
|
326,560 |
|
|
|
(11,760 |
) |
|
|
314,800 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Income Statement: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Provision for credit losses -
|
|
$ |
4,995 |
|
|
$ |
728 |
|
|
$ |
5,723 |
|
|
$ |
5,908 |
|
|
$ |
(1,803 |
) |
|
$ |
4,105 |
|
|
$ |
4,176 |
|
|
$ |
3,271 |
|
|
$ |
7,447 |
|
Provision for credit losses
|
|
|
599 |
|
|
|
237 |
|
|
|
836 |
|
|
|
188 |
|
|
|
(7 |
) |
|
|
181 |
|
|
|
137 |
|
|
|
(376 |
) |
|
|
(239 |
) |
Net interest income after
|
|
|
53,741 |
|
|
|
(1,969 |
) |
|
|
51,772 |
|
|
|
55,719 |
|
|
|
1,755 |
|
|
|
57,474 |
|
|
|
64,699 |
|
|
|
(3,272 |
) |
|
|
61,427 |
|
Income before provision
|
|
|
28,612 |
|
|
|
(1,253 |
) |
|
|
27,359 |
|
|
|
26,107 |
|
|
|
2,055 |
|
|
|
28,162 |
|
|
|
30,513 |
|
|
|
(3,084 |
) |
|
|
27,429 |
|
Provision for income taxes |
|
|
6,301 |
|
|
|
(340 |
) |
|
|
5,961 |
|
|
|
5,824 |
|
|
|
558 |
|
|
|
6,382 |
|
|
|
7,857 |
|
|
|
(837 |
) |
|
|
7,020 |
|
Net income |
|
$ |
22,311 |
|
|
$ |
(913 |
) |
|
$ |
21,398 |
|
|
$ |
20,283 |
|
|
$ |
1,497 |
|
|
$ |
21,780 |
|
|
$ |
22,656 |
|
|
$ |
(2,247 |
) |
|
$ |
20,409 |
|
Net income available to
|
|
$ |
22,115 |
|
|
$ |
(913 |
) |
|
$ |
21,202 |
|
|
$ |
20,283 |
|
|
$ |
1,497 |
|
|
$ |
21,780 |
|
|
$ |
22,656 |
|
|
$ |
(2,247 |
) |
|
$ |
20,409 |
|
EARNINGS PER COMMON SHARE |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Basic |
|
|
0.60 |
|
|
|
(0.03 |
) |
|
|
0.57 |
|
|
|
0.55 |
|
|
|
0.04 |
|
|
|
0.59 |
|
|
|
0.61 |
|
|
|
(0.06 |
) |
|
|
0.55 |
|
Diluted |
|
|
0.58 |
|
|
|
(0.02 |
) |
|
|
0.56 |
|
|
|
0.54 |
|
|
|
0.04 |
|
|
|
0.58 |
|
|
|
0.61 |
|
|
|
(0.06 |
) |
|
|
0.55 |
|
BYLINE BANCORP, INC. AND SUBSIDIARIES
RECONCILIATION OF NON-GAAP FINANCIAL MEASURES (unaudited)
Non-GAAP Financial Measures
This release contains certain financial information determined by methods other than in accordance with accounting principles generally accepted in the United States of America (“GAAP”). These measures include adjusted net income, adjusted diluted earnings per share, adjusted efficiency ratio, adjusted non-interest expense to average assets, tax-equivalent net interest margin, total revenue, non-interest income to total revenues, adjusted return on average stockholders’ equity, adjusted return on average assets, pre-tax pre-provision return on average assets, adjusted pre-tax pre-provision return on average assets, tangible book value per common share, tangible common equity to tangible assets, return on average tangible common stockholders' equity, and adjusted return on average tangible common stockholders' equity. Management believes that these non-GAAP financial measures provide useful information to management and investors that is supplementary to the Company’s financial condition, results of operations and cash flows computed in accordance with GAAP; however, management acknowledges that our non-GAAP financial measures have a number of limitations. As such, these disclosures should not be viewed as a substitute for results determined in accordance with GAAP financial measures that we and other companies use. Management also uses these measures for peer comparison. See below in the financial schedules included in this press release for a reconciliation of the non-GAAP financial measures to the comparable GAAP financial measures. Additionally, please refer to the Company’s Annual Report on Form 10-K for the detailed definitions of these non-GAAP financial measures.
|
|
As of or For the Three Months Ended |
|
|
As of or For the Twelve Months Ended |
|
||||||||||||||||||||||
|
|
|
|
|
Recast |
|
|
Recast |
|
|
Recast |
|
|
|
|
|
|
|
|
|
|
|||||||
|
|
December 31, |
|
|
September 30, |
|
|
June 30, |
|
|
March 31, |
|
|
December 31, |
|
|
December 31, |
|
|
December 31, |
|
|||||||
(dollars in thousands, except per share data) |
|
2022 |
|
|
2022 |
|
|
2022 |
|
|
2022 |
|
|
2021 |
|
|
2022 |
|
|
2021 |
|
|||||||
Net income and earnings per share
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
Reported Net Income |
|
$ |
24,367 |
|
|
$ |
20,409 |
|
|
$ |
21,780 |
|
|
$ |
21,398 |
|
|
$ |
17,189 |
|
|
$ |
87,954 |
|
|
$ |
92,785 |
|
Significant items: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
Impairment charges on assets held
|
|
|
372 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
12,449 |
|
|
|
372 |
|
|
|
16,430 |
|
Merger-related expenses |
|
|
538 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
538 |
|
|
|
— |
|
Tax benefit |
|
|
(118 |
) |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(3,377 |
) |
|
|
(118 |
) |
|
|
(4,462 |
) |
Adjusted Net Income |
|
$ |
25,159 |
|
|
$ |
20,409 |
|
|
$ |
21,780 |
|
|
$ |
21,398 |
|
|
$ |
26,261 |
|
|
$ |
88,746 |
|
|
$ |
104,753 |
|
Reported Diluted Earnings per Share |
|
$ |
0.65 |
|
|
$ |
0.55 |
|
|
$ |
0.58 |
|
|
$ |
0.56 |
|
|
$ |
0.45 |
|
|
$ |
2.34 |
|
|
$ |
2.40 |
|
Significant items: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
Impairment charges on assets held
|
|
|
0.01 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
0.33 |
|
|
|
0.01 |
|
|
|
0.43 |
|
Merger-related expenses |
|
|
0.01 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
0.01 |
|
|
|
— |
|
Tax benefit |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(0.09 |
) |
|
|
— |
|
|
|
(0.12 |
) |
Adjusted Diluted Earnings per Share |
|
$ |
0.67 |
|
|
$ |
0.55 |
|
|
$ |
0.58 |
|
|
$ |
0.56 |
|
|
$ |
0.69 |
|
|
$ |
2.36 |
|
|
$ |
2.71 |
|
BYLINE BANCORP, INC. AND SUBSIDIARIES
|
||||||||||||||||||||||||||||
|
|
As of or For the Three Months Ended |
|
|
As of or For the Twelve Months Ended |
|
||||||||||||||||||||||
|
|
|
|
|
Recast |
|
|
Recast |
|
|
Recast |
|
|
|
|
|
|
|
|
|
|
|||||||
(dollars in thousands, except per share data, |
|
December 31, |
|
|
September 30, |
|
|
June 30, |
|
|
March 31, |
|
|
December 31, |
|
|
December 31, |
|
|
December 31, |
|
|||||||
ratios annualized, where applicable) |
|
2022 |
|
|
2022 |
|
|
2022 |
|
|
2022 |
|
|
2021 |
|
|
2022 |
|
|
2021 |
|
|||||||
Adjusted non-interest expense: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
Non-interest expense |
|
$ |
50,500 |
|
|
$ |
46,041 |
|
|
$ |
43,585 |
|
|
$ |
43,956 |
|
|
$ |
59,090 |
|
|
$ |
184,082 |
|
|
$ |
185,455 |
|
Less: Significant items |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
Impairment charges on assets held for sale
|
|
|
372 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
12,449 |
|
|
|
372 |
|
|
|
16,430 |
|
Merger-related expenses |
|
|
538 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
538 |
|
|
|
— |
|
Adjusted non-interest expense |
|
$ |
49,590 |
|
|
$ |
46,041 |
|
|
$ |
43,585 |
|
|
$ |
43,956 |
|
|
$ |
46,641 |
|
|
$ |
183,172 |
|
|
$ |
169,025 |
|
Adjusted non-interest expense excluding
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
Adjusted non-interest expense |
|
$ |
49,590 |
|
|
$ |
46,041 |
|
|
$ |
43,585 |
|
|
$ |
43,956 |
|
|
$ |
46,641 |
|
|
$ |
183,172 |
|
|
$ |
169,025 |
|
Less: Amortization of intangible assets |
|
|
1,596 |
|
|
|
1,611 |
|
|
|
1,868 |
|
|
|
1,596 |
|
|
|
1,738 |
|
|
|
6,671 |
|
|
|
7,073 |
|
Adjusted non-interest expense excluding
|
|
$ |
47,994 |
|
|
$ |
44,430 |
|
|
$ |
41,717 |
|
|
$ |
42,360 |
|
|
$ |
44,903 |
|
|
$ |
176,501 |
|
|
$ |
161,952 |
|
Pre-tax pre-provision net income: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
Pre-tax income |
|
$ |
31,733 |
|
|
$ |
27,429 |
|
|
$ |
28,162 |
|
|
$ |
27,359 |
|
|
$ |
23,067 |
|
|
$ |
114,683 |
|
|
$ |
124,212 |
|
Add: Provision/(recapture) for credit losses |
|
|
5,826 |
|
|
|
7,208 |
|
|
|
4,286 |
|
|
|
6,559 |
|
|
|
(1,415 |
) |
|
|
23,879 |
|
|
|
973 |
|
Pre-tax pre-provision net income |
|
$ |
37,559 |
|
|
$ |
34,637 |
|
|
$ |
32,448 |
|
|
$ |
33,918 |
|
|
$ |
21,652 |
|
|
$ |
138,562 |
|
|
$ |
125,185 |
|
Adjusted pre-tax pre-provision net income: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
Pre-tax pre-provision net income |
|
$ |
37,559 |
|
|
$ |
34,637 |
|
|
$ |
32,448 |
|
|
$ |
33,918 |
|
|
$ |
21,652 |
|
|
$ |
138,562 |
|
|
$ |
125,185 |
|
Add: Impairment charges on assets held for sale
|
|
|
372 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
12,449 |
|
|
|
372 |
|
|
|
16,430 |
|
Add: Merger-related expenses |
|
|
538 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
538 |
|
|
|
— |
|
Adjusted pre-tax pre-provision net income |
|
$ |
38,469 |
|
|
$ |
34,637 |
|
|
$ |
32,448 |
|
|
$ |
33,918 |
|
|
$ |
34,101 |
|
|
$ |
139,472 |
|
|
$ |
141,615 |
|
Tax equivalent net interest income |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
Net interest income |
|
$ |
76,604 |
|
|
$ |
68,635 |
|
|
$ |
61,760 |
|
|
$ |
58,331 |
|
|
$ |
61,728 |
|
|
$ |
265,330 |
|
|
$ |
236,387 |
|
Add: Tax-equivalent adjustment |
|
|
214 |
|
|
|
228 |
|
|
|
236 |
|
|
|
236 |
|
|
|
256 |
|
|
|
915 |
|
|
|
1,039 |
|
Net interest income, fully taxable equivalent |
|
$ |
76,818 |
|
|
$ |
68,863 |
|
|
$ |
61,996 |
|
|
$ |
58,567 |
|
|
$ |
61,984 |
|
|
$ |
266,245 |
|
|
$ |
237,426 |
|
Total revenue: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
Net interest income |
|
$ |
76,604 |
|
|
$ |
68,635 |
|
|
$ |
61,760 |
|
|
$ |
58,331 |
|
|
$ |
61,728 |
|
|
$ |
265,330 |
|
|
$ |
236,387 |
|
Add: Non-interest income |
|
|
11,455 |
|
|
|
12,043 |
|
|
|
14,273 |
|
|
|
19,543 |
|
|
|
19,014 |
|
|
|
57,314 |
|
|
|
74,253 |
|
Total revenue |
|
$ |
88,059 |
|
|
$ |
80,678 |
|
|
$ |
76,033 |
|
|
$ |
77,874 |
|
|
$ |
80,742 |
|
|
$ |
322,644 |
|
|
$ |
310,640 |
|
Tangible common stockholders' equity: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
Total stockholders' equity |
|
$ |
765,816 |
|
|
$ |
735,805 |
|
|
$ |
755,649 |
|
|
$ |
777,660 |
|
|
$ |
836,382 |
|
|
$ |
765,816 |
|
|
$ |
836,382 |
|
Less: Preferred stock |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
10,438 |
|
|
|
— |
|
|
|
10,438 |
|
Less: Goodwill and other intangibles |
|
|
158,887 |
|
|
|
160,484 |
|
|
|
162,094 |
|
|
|
163,962 |
|
|
|
165,558 |
|
|
|
158,887 |
|
|
|
165,558 |
|
Tangible common stockholders' equity |
|
$ |
606,929 |
|
|
$ |
575,321 |
|
|
$ |
593,555 |
|
|
$ |
613,698 |
|
|
$ |
660,386 |
|
|
$ |
606,929 |
|
|
$ |
660,386 |
|
Tangible assets: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
Total assets |
|
$ |
7,362,941 |
|
|
$ |
7,267,277 |
|
|
$ |
7,124,030 |
|
|
$ |
6,825,458 |
|
|
$ |
6,696,172 |
|
|
$ |
7,362,941 |
|
|
$ |
6,696,172 |
|
Less: Goodwill and other intangibles |
|
|
158,887 |
|
|
|
160,484 |
|
|
|
162,094 |
|
|
|
163,962 |
|
|
|
165,558 |
|
|
|
158,887 |
|
|
|
165,558 |
|
Tangible assets |
|
$ |
7,204,054 |
|
|
$ |
7,106,793 |
|
|
$ |
6,961,936 |
|
|
$ |
6,661,496 |
|
|
$ |
6,530,614 |
|
|
$ |
7,204,054 |
|
|
$ |
6,530,614 |
|
Average tangible common stockholders'
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
Average total stockholders' equity |
|
$ |
748,292 |
|
|
$ |
765,821 |
|
|
$ |
769,658 |
|
|
$ |
822,053 |
|
|
$ |
838,975 |
|
|
$ |
776,225 |
|
|
$ |
820,017 |
|
Less: Average preferred stock |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
9,974 |
|
|
|
10,438 |
|
|
|
2,459 |
|
|
|
10,438 |
|
Less: Average goodwill and other
|
|
|
159,680 |
|
|
|
161,292 |
|
|
|
163,068 |
|
|
|
164,837 |
|
|
|
166,396 |
|
|
|
162,203 |
|
|
|
169,042 |
|
Average tangible common stockholders'
|
|
$ |
588,612 |
|
|
$ |
604,529 |
|
|
$ |
606,590 |
|
|
$ |
647,242 |
|
|
$ |
662,141 |
|
|
$ |
611,563 |
|
|
$ |
640,537 |
|
Average tangible assets: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
Average total assets |
|
$ |
7,266,053 |
|
|
$ |
7,137,472 |
|
|
$ |
6,966,564 |
|
|
$ |
6,697,476 |
|
|
$ |
6,699,069 |
|
|
$ |
7,018,779 |
|
|
$ |
6,642,131 |
|
Less: Average goodwill and other
|
|
|
159,680 |
|
|
|
161,292 |
|
|
|
163,068 |
|
|
|
164,837 |
|
|
|
166,396 |
|
|
|
162,203 |
|
|
|
169,042 |
|
Average tangible assets |
|
$ |
7,106,373 |
|
|
$ |
6,976,180 |
|
|
$ |
6,803,496 |
|
|
$ |
6,532,639 |
|
|
$ |
6,532,673 |
|
|
$ |
6,856,576 |
|
|
$ |
6,473,089 |
|
Tangible net income available to common
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
Net income available to common
|
|
$ |
24,367 |
|
|
$ |
20,409 |
|
|
$ |
21,780 |
|
|
$ |
21,202 |
|
|
$ |
16,993 |
|
|
$ |
87,758 |
|
|
$ |
92,002 |
|
Add: After-tax intangible asset amortization |
|
|
1,170 |
|
|
|
1,181 |
|
|
|
1,369 |
|
|
|
1,170 |
|
|
|
1,266 |
|
|
|
4,890 |
|
|
|
5,147 |
|
Tangible net income available to common
|
|
$ |
25,537 |
|
|
$ |
21,590 |
|
|
$ |
23,149 |
|
|
$ |
22,372 |
|
|
$ |
18,259 |
|
|
$ |
92,648 |
|
|
$ |
97,149 |
|
Adjusted tangible net income available
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
Tangible net income available to common
|
|
$ |
25,537 |
|
|
$ |
21,590 |
|
|
$ |
23,149 |
|
|
$ |
22,372 |
|
|
$ |
18,259 |
|
|
$ |
92,648 |
|
|
$ |
97,149 |
|
Impairment charges on assets held for sale
|
|
|
372 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
12,449 |
|
|
|
372 |
|
|
|
16,430 |
|
Merger-related expenses |
|
|
538 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
538 |
|
|
|
— |
|
Tax benefit on significant items |
|
|
(118 |
) |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(3,377 |
) |
|
|
(118 |
) |
|
|
(4,462 |
) |
Adjusted tangible net income available to
|
|
$ |
26,329 |
|
|
$ |
21,590 |
|
|
$ |
23,149 |
|
|
$ |
22,372 |
|
|
$ |
27,331 |
|
|
$ |
93,440 |
|
|
$ |
109,117 |
|
BYLINE BANCORP, INC. AND SUBSIDIARIES RECONCILIATION OF NON-GAAP FINANCIAL MEASURES (continued) (unaudited) |
||||||||||||||||||||||||||||
|
|
As of or For the Three Months Ended |
|
|
As of or For the Twelve Months Ended |
|
||||||||||||||||||||||
|
|
|
|
|
Recast |
|
|
Recast |
|
|
Recast |
|
|
|
|
|
|
|
|
|
|
|||||||
(dollars in thousands, except share and per share |
|
December 31, |
|
|
September 30, |
|
|
June 30, |
|
|
March 31, |
|
|
December 31, |
|
|
December 31, |
|
|
December 31, |
|
|||||||
data, ratios annualized, where applicable) |
|
2022 |
|
|
2022 |
|
|
2022 |
|
|
2022 |
|
|
2021 |
|
|
2022 |
|
|
2021 |
|
|||||||
Pre-tax pre-provision return on average assets: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
Pre-tax pre-provision net income |
|
$ |
37,559 |
|
|
$ |
34,637 |
|
|
$ |
32,448 |
|
|
$ |
33,918 |
|
|
$ |
21,652 |
|
|
$ |
138,562 |
|
|
$ |
125,185 |
|
Average total assets |
|
|
7,266,053 |
|
|
|
7,137,472 |
|
|
|
6,966,564 |
|
|
|
6,697,476 |
|
|
|
6,699,069 |
|
|
|
7,018,779 |
|
|
|
6,642,131 |
|
Pre-tax pre-provision return on average assets |
|
|
2.05 |
% |
|
|
1.93 |
% |
|
|
1.87 |
% |
|
|
2.05 |
% |
|
|
1.28 |
% |
|
|
1.97 |
% |
|
|
1.88 |
% |
Adjusted pre-tax pre-provision return on average
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
Adjusted pre-tax pre-provision net income |
|
$ |
38,469 |
|
|
$ |
34,637 |
|
|
$ |
32,448 |
|
|
$ |
33,918 |
|
|
$ |
34,101 |
|
|
$ |
139,472 |
|
|
$ |
141,615 |
|
Average total assets |
|
|
7,266,053 |
|
|
|
7,137,472 |
|
|
|
6,966,564 |
|
|
|
6,697,476 |
|
|
|
6,699,069 |
|
|
|
7,018,779 |
|
|
|
6,642,131 |
|
Adjusted pre-tax pre-provision return on average
|
|
|
2.10 |
% |
|
|
1.93 |
% |
|
|
1.87 |
% |
|
|
2.05 |
% |
|
|
2.02 |
% |
|
|
1.99 |
% |
|
|
2.13 |
% |
Net interest margin, fully taxable equivalent |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
Net interest income, fully taxable equivalent |
|
$ |
76,818 |
|
|
$ |
68,863 |
|
|
$ |
61,996 |
|
|
$ |
58,567 |
|
|
$ |
61,984 |
|
|
$ |
266,245 |
|
|
$ |
237,426 |
|
Total average interest-earning assets |
|
|
6,922,890 |
|
|
|
6,763,916 |
|
|
|
6,572,416 |
|
|
|
6,252,866 |
|
|
|
6,189,762 |
|
|
|
6,630,464 |
|
|
|
6,148,841 |
|
Net interest margin, fully taxable equivalent |
|
|
4.40 |
% |
|
|
4.04 |
% |
|
|
3.78 |
% |
|
|
3.80 |
% |
|
|
3.97 |
% |
|
|
4.01 |
% |
|
|
3.86 |
% |
Non-interest income to total revenues: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
Non-interest income |
|
$ |
11,455 |
|
|
$ |
12,043 |
|
|
$ |
14,273 |
|
|
$ |
19,543 |
|
|
$ |
19,014 |
|
|
$ |
57,314 |
|
|
$ |
74,253 |
|
Total revenues |
|
|
88,059 |
|
|
|
80,678 |
|
|
|
76,033 |
|
|
|
77,874 |
|
|
|
80,742 |
|
|
|
322,644 |
|
|
|
310,640 |
|
Non-interest income to total revenues |
|
|
13.01 |
% |
|
|
14.93 |
% |
|
|
18.77 |
% |
|
|
25.09 |
% |
|
|
23.55 |
% |
|
|
17.76 |
% |
|
|
23.90 |
% |
Adjusted non-interest expense to average assets: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
Adjusted non-interest expense |
|
$ |
49,590 |
|
|
$ |
46,041 |
|
|
$ |
43,585 |
|
|
$ |
43,956 |
|
|
$ |
46,641 |
|
|
$ |
183,172 |
|
|
$ |
169,025 |
|
Average total assets |
|
|
7,266,053 |
|
|
|
7,137,472 |
|
|
|
6,966,564 |
|
|
|
6,697,476 |
|
|
|
6,699,069 |
|
|
|
7,018,779 |
|
|
|
6,642,131 |
|
Adjusted non-interest expense to average assets |
|
|
2.71 |
% |
|
|
2.56 |
% |
|
|
2.51 |
% |
|
|
2.66 |
% |
|
|
2.76 |
% |
|
|
2.61 |
% |
|
|
2.54 |
% |
Adjusted efficiency ratio: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
Adjusted non-interest expense excluding
|
|
$ |
47,994 |
|
|
$ |
44,430 |
|
|
$ |
41,717 |
|
|
$ |
42,360 |
|
|
$ |
44,903 |
|
|
$ |
176,501 |
|
|
$ |
161,952 |
|
Total revenues |
|
|
88,059 |
|
|
|
80,678 |
|
|
|
76,033 |
|
|
|
77,874 |
|
|
|
80,742 |
|
|
|
322,644 |
|
|
|
310,640 |
|
Adjusted efficiency ratio |
|
|
54.50 |
% |
|
|
55.07 |
% |
|
|
54.87 |
% |
|
|
54.40 |
% |
|
|
55.61 |
% |
|
|
54.70 |
% |
|
|
52.14 |
% |
Adjusted return on average assets: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
Adjusted net income |
|
$ |
25,159 |
|
|
$ |
20,409 |
|
|
$ |
21,780 |
|
|
$ |
21,398 |
|
|
$ |
26,261 |
|
|
$ |
88,746 |
|
|
$ |
104,753 |
|
Average total assets |
|
|
7,266,053 |
|
|
|
7,137,472 |
|
|
|
6,966,564 |
|
|
|
6,697,476 |
|
|
|
6,699,069 |
|
|
|
7,018,779 |
|
|
|
6,642,131 |
|
Adjusted return on average assets |
|
|
1.37 |
% |
|
|
1.13 |
% |
|
|
1.25 |
% |
|
|
1.30 |
% |
|
|
1.56 |
% |
|
|
1.26 |
% |
|
|
1.58 |
% |
Adjusted return on average stockholders' equity: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
Adjusted net income |
|
$ |
25,159 |
|
|
$ |
20,409 |
|
|
$ |
21,780 |
|
|
$ |
21,398 |
|
|
$ |
26,261 |
|
|
$ |
88,746 |
|
|
$ |
104,753 |
|
Average stockholders' equity |
|
|
748,292 |
|
|
|
765,821 |
|
|
|
769,658 |
|
|
|
822,053 |
|
|
|
838,975 |
|
|
|
776,225 |
|
|
|
820,017 |
|
Adjusted return on average stockholders' equity |
|
|
13.34 |
% |
|
|
10.57 |
% |
|
|
11.35 |
% |
|
|
10.56 |
% |
|
|
12.42 |
% |
|
|
11.43 |
% |
|
|
12.77 |
% |
Tangible common equity to tangible assets: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
Tangible common equity |
|
$ |
606,929 |
|
|
$ |
575,321 |
|
|
$ |
593,555 |
|
|
$ |
613,698 |
|
|
$ |
660,386 |
|
|
$ |
606,929 |
|
|
$ |
660,386 |
|
Tangible assets |
|
|
7,204,054 |
|
|
|
7,106,793 |
|
|
|
6,961,936 |
|
|
|
6,661,496 |
|
|
|
6,530,614 |
|
|
|
7,204,054 |
|
|
|
6,530,614 |
|
Tangible common equity to tangible assets |
|
|
8.42 |
% |
|
|
8.10 |
% |
|
|
8.53 |
% |
|
|
9.21 |
% |
|
|
10.11 |
% |
|
|
8.42 |
% |
|
|
10.11 |
% |
Return on average tangible common stockholders'
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
Tangible net income available to common
|
|
$ |
25,537 |
|
|
$ |
21,590 |
|
|
$ |
23,149 |
|
|
$ |
22,372 |
|
|
$ |
18,259 |
|
|
$ |
92,648 |
|
|
$ |
97,149 |
|
Average tangible common stockholders' equity |
|
|
588,612 |
|
|
|
604,529 |
|
|
|
606,590 |
|
|
|
647,242 |
|
|
|
662,141 |
|
|
|
611,563 |
|
|
|
640,537 |
|
Return on average tangible common
|
|
|
17.21 |
% |
|
|
14.17 |
% |
|
|
15.31 |
% |
|
|
14.02 |
% |
|
|
10.94 |
% |
|
|
15.15 |
% |
|
|
15.17 |
% |
Adjusted return on average tangible common
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
Adjusted tangible net income available to
|
|
$ |
26,329 |
|
|
$ |
21,590 |
|
|
$ |
23,149 |
|
|
$ |
22,372 |
|
|
$ |
27,331 |
|
|
$ |
93,440 |
|
|
$ |
109,117 |
|
Average tangible common stockholders' equity |
|
|
588,612 |
|
|
|
604,529 |
|
|
|
606,590 |
|
|
|
647,242 |
|
|
|
662,141 |
|
|
|
611,563 |
|
|
|
640,537 |
|
Adjusted return on average tangible common
|
|
|
17.75 |
% |
|
|
14.17 |
% |
|
|
15.31 |
% |
|
|
14.02 |
% |
|
|
16.38 |
% |
|
|
15.28 |
% |
|
|
17.04 |
% |
Tangible book value per share: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
Tangible common equity |
|
$ |
606,929 |
|
|
$ |
575,321 |
|
|
$ |
593,555 |
|
|
$ |
613,698 |
|
|
$ |
660,386 |
|
|
$ |
606,929 |
|
|
$ |
660,386 |
|
Common shares outstanding |
|
|
37,492,775 |
|
|
|
37,465,902 |
|
|
|
37,669,102 |
|
|
|
37,811,582 |
|
|
|
37,713,903 |
|
|
|
37,492,775 |
|
|
|
37,713,903 |
|
Tangible book value per share |
|
$ |
16.19 |
|
|
$ |
15.36 |
|
|
$ |
15.76 |
|
|
$ |
16.23 |
|
|
$ |
17.51 |
|
|
$ |
16.19 |
|
|
$ |
17.51 |
|
View source version on businesswire.com: https://www.businesswire.com/news/home/20230126005915/en/
Contacts
Investors:
Brooks Rennie
Investor Relations Director
312-660-5805
brennie@bylinebank.com
Media:
Erin O’Neill
Marketing Director
773-475-2901
eoneill@bylinebank.com
