Net income of $29.7 million, $0.68 diluted
earnings per share
Byline Bancorp, Inc. (NYSE: BY), today reported:
For the quarter
Second Quarter
Highlights
(compared to 1Q24, unless
otherwise specified)
2Q24
1Q24
2Q23
Financial Results ($ 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
(1)
Represents non-GAAP financial measures.
See “Reconciliation of non-GAAP Financial Measures” for a
reconciliation to the most directly comparable GAAP financial
measure.
(2)
Annualized
CEO/President Commentary
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."
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.
(1)
Represents non-GAAP financial
measures. See “Reconciliation of non-GAAP Financial Measures” for a
reconciliation of our non-GAAP measures to the most directly
comparable GAAP financial measure.
STATEMENTS OF FINANCIAL CONDITION HIGHLIGHTS
Assets
Total assets were $9.6 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.
(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.
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.
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
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
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%.
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
$
85,541
$
76,166
Net interest margin(4)
3.98
%
4.00
%
4.32
%
Net loan accretion impact on margin
$
3,656
0.17
%
$
4,284
0.20
%
$
611
0.03
%
(1)
Loan and lease balances are net
of deferred origination fees and costs and initial direct costs.
Non-accrual loans and leases are included in total loan and lease
balances.
(2)
Interest income and rates include
the effects of a tax equivalent adjustment to adjust tax exempt
investment income on tax exempt investment securities to a fully
taxable basis, assuming a federal income tax rate of 21%.
(3)
Represents the average rate
earned on interest-earning assets minus the average rate paid on
interest-bearing liabilities.
(4)
Represents net interest income
(annualized) divided by total average earning assets.
(5)
Average balances are average
daily balances.
BYLINE BANCORP, INC. AND
SUBSIDIARIES
SELECTED BALANCE SHEET TABLES AND
FINANCIAL RATIOS (unaudited)
The following table presents our
allocation of originated, purchased credit deteriorated (PCD), and
acquired non-credit-deteriorated loans and leases at the dates
indicated:
June 30, 2024
March 31, 2024
June 30, 2023
(dollars in thousands)
Amount
% of
Total
Amount
% of
Total
Amount
% of
Total
Originated loans and leases:
Commercial real estate
$
1,924,797
27.9
%
$
1,879,149
27.7
%
$
1,806,531
32.4
%
Residential real estate
498,578
7.2
%
488,887
7.2
%
453,880
8.1
%
Construction, land development, and other
land
445,919
6.5
%
416,996
6.2
%
387,623
7.0
%
Commercial and industrial
2,493,229
36.2
%
2,420,952
35.7
%
2,086,274
37.5
%
Installment and other
2,576
0.0
%
2,855
0.0
%
3,582
0.1
%
Leasing financing receivables
710,784
10.3
%
691,617
10.2
%
604,437
10.9
%
Total originated loans and leases
$
6,075,883
88.1
%
$
5,900,456
87.0
%
$
5,342,327
95.9
%
Purchased credit deteriorated
loans:
Commercial real estate
$
114,053
1.7
%
$
117,460
1.7
%
$
30,724
0.6
%
Residential real estate
40,728
0.6
%
39,535
0.6
%
26,012
0.5
%
Construction, land development, and other
land
9
0.0
%
26,418
0.4
%
320
0.0
%
Commercial and industrial
17,796
0.3
%
18,100
0.3
%
1,726
0.0
%
Installment and other
116
0.0
%
118
0.0
%
129
0.0
%
Total purchased credit deteriorated
loans
$
172,702
2.6
%
$
201,631
3.0
%
$
58,911
1.1
%
Acquired non-credit-deteriorated loans
and leases:
Commercial real estate
$
254,858
3.7
%
$
271,720
4.0
%
$
126,191
2.3
%
Residential real estate
188,489
2.7
%
204,589
3.0
%
25,055
0.4
%
Construction, land development, and other
land
84,849
1.2
%
85,553
1.3
%
—
0.0
%
Commercial and industrial
113,997
1.7
%
113,673
1.7
%
16,750
0.3
%
Installment and other
153
0.0
%
166
0.0
%
25
0.0
%
Leasing financing receivables
273
0.0
%
426
0.0
%
1,258
0.0
%
Total acquired non-credit-deteriorated
loans and leases
$
642,619
9.3
%
$
676,127
10.0
%
$
169,279
3.0
%
Total loans and leases
$
6,891,204
100.0
%
$
6,778,214
100.0
%
$
5,570,517
100.0
%
Allowance for credit losses - loans and
leases
(99,730
)
(102,366
)
(92,665
)
Total loans and leases, net of allowance
for credit losses - loans and leases
$
6,791,474
$
6,675,848
$
5,477,852
The following table presents the balance
and activity within the allowance for credit losses - loans and
lease for the periods indicated:
Three Months Ended
June 30,
March 31,
June 30,
(dollars in thousands)
2024
2024
2023
ACL - loans and leases, beginning of
period
$
102,366
$
101,686
$
90,465
Provision for credit losses - loans and
leases
6,878
6,891
6,467
Net charge-offs - loans and leases
(9,514
)
(6,211
)
(4,267
)
ACL - loans and leases, end of period
$
99,730
$
102,366
$
92,665
Net charge-offs - loans and leases to
average total loans and leases held for investment, net before
ACL
0.56
%
0.37
%
0.31
%
Provision for credit losses - loans and
leases to net charge-offs - loans and leases during the period
0.72
x
1.11
x
1.52
x
BYLINE BANCORP, INC. AND
SUBSIDIARIES
SELECTED BALANCE SHEET TABLES AND
FINANCIAL RATIOS (unaudited)
The following table presents the amounts
of non-performing loans and leases and other real estate owned at
the date indicated:
June 30, 2024
Change from
(dollars in thousands)
June 30,
2024
March 31,
2024
June 30,
2023
March 31,
2024
June 30,
2023
Non-performing assets:
Non-accrual loans and leases
$
63,808
$
67,899
$
38,273
(6.0
)%
66.7
%
Past due loans and leases 90 days or more
and still accruing interest
—
—
—
—%
—%
Total non-performing loans and leases
$
63,808
$
67,899
$
38,273
(6.0
)%
66.7
%
Other real estate owned
780
785
2,265
(0.6
)%
(65.6
)%
Total non-performing assets
$
64,588
$
68,684
$
40,538
(6.0
)%
59.3
%
Total non-performing loans and leases as a
percentage of total loans and leases
0.93
%
1.00
%
0.69
%
Total non-performing assets as a
percentage of total assets
0.67
%
0.73
%
0.54
%
Allowance for credit losses - loans and
lease as a percentage of non-performing loans and leases
156.30
%
150.76
%
242.11
%
Non-performing assets guaranteed by
U.S. government:
Non-accrual loans guaranteed
$
6,616
$
7,138
$
2,472
(7.3
)%
167.6
%
Past due loans 90 days or more and still
accruing interest guaranteed
—
—
—
—%
—%
Total non-performing loans guaranteed
$
6,616
$
7,138
$
2,472
(7.3
)%
167.6
%
Total non-performing loans and leases not
guaranteed as a percentage of total loans and leases
0.83
%
0.90
%
0.64
%
Total non-performing assets not guaranteed
as a percentage of total assets
0.60
%
0.65
%
0.50
%
The following table presents the
composition of deposits at the dates indicated:
June 30, 2024
Change from
(dollars in thousands)
June 30, 2024
March 31, 2024
June 30, 2023
March 31, 2024
June 30, 2023
Non-interest-bearing demand deposits
$
1,762,891
$
1,851,727
$
1,793,749
(4.8
)%
(1.7
)%
Interest-bearing checking accounts
717,229
687,142
530,775
4.4
%
35.1
%
Money market demand accounts
2,323,245
2,263,819
1,600,043
2.6
%
45.2
%
Other savings
503,935
524,890
562,706
(4.0
)%
(10.4
)%
Time deposits (below $250,000)
1,610,308
1,594,290
1,214,717
1.0
%
32.6
%
Time deposits ($250,000 and above)
429,573
428,334
215,102
0.3
%
99.7
%
Total deposits
$
7,347,181
$
7,350,202
$
5,917,092
(0.0
)%
24.2
%
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
June 30,
March 31,
June 30,
(dollars in thousands, except per share
data)
2024
2024
2023
Net income and earnings per share
excluding significant items:
Reported Net Income
$
29,671
$
30,440
$
26,107
Significant items:
Impairment charges on ROU assets
—
194
—
Merger-related expenses
—
—
1,391
Tax benefit
—
(52
)
(230
)
Adjusted Net Income
$
29,671
$
30,582
$
27,268
Reported Diluted Earnings per
Share
$
0.68
$
0.70
$
0.70
Significant items:
Impairment charges on ROU assets
—
—
—
Merger-related expenses
—
—
0.04
Tax benefit
—
—
(0.01
)
Adjusted Diluted Earnings per
Share
$
0.68
$
0.70
$
0.73
BYLINE BANCORP, INC. AND
SUBSIDIARIES
RECONCILIATION OF NON-GAAP
FINANCIAL MEASURES (continued) (unaudited)
As of or For the Three Months
Ended
(dollars in thousands, except per share
data,
June 30,
March 31,
June 30,
ratios annualized, where
applicable)
2024
2024
2023
Adjusted non-interest expense:
Non-interest expense
$
53,210
$
53,809
$
49,328
Less: Impairment charges on ROU assets
—
194
—
Less: Merger-related expenses
—
—
1,391
Adjusted non-interest expense
$
53,210
$
53,615
$
47,937
Adjusted non-interest expense excluding
amortization of intangible assets:
Adjusted non-interest expense
$
53,210
$
53,615
$
47,937
Less: Amortization of intangible
assets
1,345
1,345
1,455
Adjusted non-interest expense excluding
amortization of intangible assets
$
51,865
$
52,270
$
46,482
Pre-tax pre-provision net
income:
Pre-tax income
$
40,115
$
40,562
$
35,339
Add: Provision for credit losses
6,045
6,643
5,790
Pre-tax pre-provision net income
$
46,160
$
47,205
$
41,129
Adjusted pre-tax pre-provision net
income:
Pre-tax pre-provision net income
$
46,160
$
47,205
$
41,129
Add: Impairment charges on ROU assets
—
194
—
Add: Merger-related expenses
—
—
1,391
Adjusted pre-tax pre-provision net
income
$
46,160
$
47,399
$
42,520
Tax equivalent net interest
income:
Net interest income
$
86,526
$
85,541
$
76,166
Add: Tax-equivalent adjustment
229
233
207
Net interest income, fully taxable
equivalent
$
86,755
$
85,774
$
76,373
Total revenue:
Net interest income
$
86,526
$
85,541
$
76,166
Add: Non-interest income
12,844
15,473
14,291
Total revenue
$
99,370
$
101,014
$
90,457
Tangible common stockholders'
equity:
Total stockholders' equity
$
1,033,014
$
1,009,049
$
813,942
Less: Goodwill and other intangibles
200,788
202,133
155,977
Tangible common stockholders' equity
$
832,226
$
806,916
$
657,965
Tangible assets:
Total assets
$
9,633,815
$
9,410,503
$
7,575,690
Less: Goodwill and other intangibles
200,788
202,133
155,977
Tangible assets
$
9,433,027
$
9,208,370
$
7,419,713
Average tangible common stockholders'
equity:
Average total stockholders' equity
$
1,008,802
$
998,806
$
806,272
Less: Average goodwill and other
intangibles
201,428
202,773
156,766
Average tangible common stockholders'
equity
$
807,374
$
796,033
$
649,506
Average tangible assets:
Average total assets
$
9,140,736
$
9,030,941
$
7,403,899
Less: Average goodwill and other
intangibles
201,428
202,773
156,766
Average tangible assets
$
8,939,308
$
8,828,168
$
7,247,133
Tangible net income available to common
stockholders:
Net income available to common
stockholders
$
29,671
$
30,440
$
26,107
Add: After-tax intangible asset
amortization
987
986
1,067
Tangible net income available to common
stockholders
$
30,658
$
31,426
$
27,174
Adjusted tangible net income available
to common stockholders:
Tangible net income available to common
stockholders
$
30,658
$
31,426
$
27,174
Add: Impairment charges on ROU assets
—
194
—
Add: Merger-related expenses
—
—
1,391
Add: Tax benefit on significant items
—
(52
)
(230
)
Adjusted tangible net income available to
common stockholders
$
30,658
$
31,568
$
28,335
BYLINE BANCORP, INC. AND
SUBSIDIARIES
RECONCILIATION OF NON-GAAP
FINANCIAL MEASURES (continued) (unaudited)
As of or For the Three Months
Ended
(dollars in thousands, except share and
per share
June 30,
March 31,
June 30,
data, ratios annualized, where
applicable)
2024
2024
2023
Pre-tax pre-provision return on average
assets:
Pre-tax pre-provision net income
$
46,160
$
47,205
$
41,129
Average total assets
9,140,736
9,030,941
7,403,899
Pre-tax pre-provision return on average
assets
2.03
%
2.10
%
2.23
%
Adjusted pre-tax pre-provision return
on average assets:
Adjusted pre-tax pre-provision net
income
$
46,160
$
47,399
$
42,520
Average total assets
9,140,736
9,030,941
7,403,899
Adjusted pre-tax pre-provision return on
average assets
2.03
%
2.11
%
2.30
%
Net interest margin, fully taxable
equivalent:
Net interest income, fully taxable
equivalent
$
86,755
$
85,774
$
76,373
Total average interest-earning assets
8,743,462
8,603,582
7,072,581
Net interest margin, fully taxable
equivalent
3.99
%
4.01
%
4.33
%
Non-interest income to total
revenues:
Non-interest income
$
12,844
$
15,473
$
14,291
Total revenues
99,370
101,014
90,457
Non-interest income to total revenues
12.93
%
15.32
%
15.80
%
Adjusted non-interest expense to
average assets:
Adjusted non-interest expense
$
53,210
$
53,615
$
47,937
Average total assets
9,140,736
9,030,941
7,403,899
Adjusted non-interest expense to average
assets
2.34
%
2.39
%
2.60
%
Adjusted efficiency ratio:
Adjusted non-interest expense excluding
amortization of intangible assets
$
51,865
$
52,270
$
46,482
Total revenues
99,370
101,014
90,457
Adjusted efficiency ratio
52.19
%
51.75
%
51.39
%
Adjusted return on average
assets:
Adjusted net income
$
29,671
$
30,582
$
27,268
Average total assets
9,140,736
9,030,941
7,403,899
Adjusted return on average assets
1.31
%
1.36
%
1.48
%
Adjusted return on average
stockholders' equity:
Adjusted net income
$
29,671
$
30,582
$
27,268
Average stockholders' equity
1,008,802
998,806
806,272
Adjusted return on average stockholders'
equity
11.83
%
12.31
%
13.56
%
Tangible common equity to tangible
assets:
Tangible common equity
$
832,226
$
806,916
$
657,965
Tangible assets
9,433,027
9,208,370
7,419,713
Tangible common equity to tangible
assets
8.82
%
8.76
%
8.87
%
Return on average tangible common
stockholders' equity:
Tangible net income available to common
stockholders
$
30,658
$
31,426
$
27,174
Average tangible common stockholders'
equity
807,374
796,033
649,506
Return on average tangible common
stockholders' equity
15.27
%
15.88
%
16.78
%
Adjusted return on average tangible
common stockholders' equity:
Adjusted tangible net income available to
common stockholders
$
30,658
$
31,568
$
28,335
Average tangible common stockholders'
equity
807,374
796,033
649,506
Adjusted return on average tangible common
stockholders' equity
15.27
%
15.95
%
17.50
%
Tangible book value per share:
Tangible common equity
$
832,226
$
806,916
$
657,965
Common shares outstanding
44,180,829
44,108,387
37,752,002
Tangible book value per share
$
18.84
$
18.29
$
17.43
View source
version on businesswire.com: https://www.businesswire.com/news/home/20240725278359/en/
Investors / Media: Brooks Rennie Investor Relations
Director 312-660-5805 brennie@bylinebank.com
Byline Bancorp (NYSE:BY)
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