Net income of $30.3 million, $0.69 diluted
earnings per share
Byline Bancorp, Inc. (NYSE: BY), today reported:
At or For the quarter
Third Quarter
Highlights
(compared to 2Q24, unless
otherwise specified)
3Q24
2Q24
3Q23
Financial Results ($ in
thousands)
• Announced definitive merger
agreement
Net interest income
$
87,455
$
86,526
$
92,452
with First Security Bancorp, Inc.
Non-interest income
14,385
12,844
12,376
Total revenue(1)
101,840
99,370
104,828
• ROAA of 1.29%; PTPP ROAA of 2.02%(1)
Non-interest expense (NIE)
54,327
53,210
57,891
Pre-tax pre-provision net income(1)
47,513
46,160
46,937
• TBV per share of $20.21(1); up 7.3%
LQ,
Provision for credit losses
7,475
6,045
8,803
and 23.6% YoY
Provision for income taxes
9,710
10,444
9,912
Net Income
$
30,328
$
29,671
$
28,222
• Common equity tier 1 of 11.35%, an
increase
of 51 bps
Per Share
Diluted earnings per share (EPS)
$
0.69
$
0.68
$
0.65
Income Statement
Dividends declared per common share
0.09
0.09
0.09
• Net interest income of $87.5 million,
an
Book value per share
24.70
23.38
21.04
increase of $929,000, or 1.1%
Tangible book value (TBV) per share(1)
20.21
18.84
16.35
• Non-interest income of $14.4 million,
an
Balance Sheet & Credit Quality ($
in thousands)
increase of $1.5 million, or 12.0%
Total deposits
$
7,497,887
$
7,347,181
$
6,953,690
Total loans and leases
6,899,401
6,904,564
6,620,602
• NIE/AA 2.31%, down three bps
Net charge-offs
8,467
9,514
5,430
Allowance for credit losses (ACL)
98,860
99,730
105,696
• Adjusted efficiency ratio of
51.62%(1),
ACL to total loans and leases held for
investment
1.44%
1.45%
1.60%
down by 57 bps
Select Ratios (annualized where
applicable)
Balance Sheet
Efficiency ratio(1)
52.02%
52.19%
53.75%
• Total deposits grew $150.7 million, or
2.1%
Return on average assets (ROAA)
1.29%
1.31%
1.30%
Return on average stockholders' equity
11.39%
11.83%
12.11%
• Loan/deposits down 196 bps to 92.02%
Return on average tangible common
equity(1)
14.49%
15.27%
16.15%
Net interest margin (NIM)
3.88%
3.98%
4.46%
• Reduced other borrowings by $400.0
million
Common equity to total assets
11.63%
10.72%
10.29%
Tangible common equity to tangible
assets(1)
9.72%
8.82%
8.18%
• Tangible common equity to tangible
assets
Common equity tier 1
11.35%
10.84%
10.08%
of 9.72%(1), an increase of 90 bps
(1)
Represents non-GAAP financial measures.
See “Reconciliation of non-GAAP Financial Measures” for a
reconciliation to the most directly comparable GAAP financial
measure.
CEO/President Commentary
Roberto R. Herencia, Executive Chairman
and CEO of Byline Bancorp, commented, "Our third quarter
performance reflects Byline’s continued strong momentum across the
franchise as we posted strong results. We are excited about our
pending First Security Bancorp, Inc. transaction, which aligns with
our long-term M&A strategy. We believe this merger strengthens
our position in the market by adding a high-quality franchise with
a strong core deposit base. We look forward to welcoming First
Security Bank and Trust customers to Byline in 2025."
Alberto J. Paracchini, President of Byline
Bancorp, added, "Third quarter results were highlighted by robust
earnings, strong profitability, net interest income expansion,
solid deposit and fee revenue growth, and controlled non-interest
expense. Importantly, we increased tangible book value and continue
to maintain excellent balance sheet strength. We remain focused on
executing our strategy of becoming the preeminent commercial bank
in Chicago while continuing to increase the value of the
franchise."
Board Declares Cash Dividend of $0.09
per Share
On October 22, 2024, the Company's Board of Directors declared a
cash dividend of $0.09 per share, payable on November 19, 2024, to
stockholders of record of the Company's common stock as of November
5, 2024.
STATEMENTS OF OPERATIONS HIGHLIGHTS
Net Interest Income
Net interest income for the third quarter of 2024 was $87.5
million, an increase of $929,000, or 1.1%, from the second quarter
of 2024. The increase in net interest income was primarily due to
increases in other interest and dividend income driven by increased
interest income on funds held with the Federal Reserve Bank, and
increases in interest and fees on loans and leases mainly due to
day count. These were offset by increases in interest expense on
deposits primarily due to increased average balances in time
deposits and money market accounts from our deposit promotion
campaigns.
Tax-equivalent net interest margin(1) for the third quarter of
2024 was 3.89%, a decrease of ten basis points compared to the
second quarter of 2024. Net loan accretion income positively
contributed 13 basis points to the net interest margin for the
current quarter compared to 17 basis points for the prior
quarter.
The average cost of total deposits was 2.76% for the third
quarter of 2024, an increase of 13 basis points compared to the
second quarter of 2024, as a result of higher rates paid on time
deposits. Average non-interest-bearing demand deposits were 23.2%
of average total deposits for the current quarter compared to 25.0%
during the prior quarter.
Provision for Credit Losses
The provision for credit losses was $7.5 million for the third
quarter of 2024, an increase of $1.4 million compared to $6.0
million for the second quarter of 2024, mainly attributed to
increases related to individually assessed loans in the government
guaranteed loan portfolio. The provision for credit losses for the
quarter is comprised of a provision for loan and lease losses of
$7.6 million compared to $6.9 million in the second quarter of
2024, and a recapture of the provision for unfunded commitments of
$122,000 compared to $833,000 in the second quarter of 2024.
Non-interest Income
Non-interest income for the third quarter of 2024 was $14.4
million, an increase of $1.5 million, or 12.0%, compared to $12.8
million for the second quarter of 2024. The increase in total
non-interest income was primarily due to the change in the fair
value of equity securities, net, and an increase in other
non-interest income due to increased swap fee activity.
Net gains on sales of loans were $5.9 million for the current
quarter, a decrease of $172,000, or 2.8% compared to the prior
quarter. During the third quarter of 2024, we sold $79.5 million of
U.S. government guaranteed loans compared to $73.9 million during
the second quarter of 2024.
Non-interest Expense
Non-interest expense for the third quarter of 2024 was $54.3
million, an increase of $1.1 million, or 2.1%, compared to $53.2
million for the second quarter of 2024. The increase in
non-interest expense was mainly due to increased salaries and
employee benefits as a result of one additional payroll day, higher
commissions, and lower deferred salaries related to loan and lease
originations. Included in legal, audit and other professionals fees
are $408,000 in merger-related expenses, and $3,000 merger-related
expenses in data processing.
Our efficiency ratio was 52.02% for the third quarter of 2024
compared to 52.19% for the second quarter of 2024, a decrease of 17
basis points. Our adjusted efficiency ratio was 51.62%(1) for the
third quarter of 2024 compared to 52.19%(1) for the second quarter
of 2024, a decrease of 57 basis points.
Income Taxes
We recorded income tax expense of $9.7 million during the third
quarter of 2024, compared to $10.4 million during the second
quarter of 2024. The effective tax rates were 24.3% and 26.0% for
the third quarter of 2024 and second quarter of 2024, respectively.
The decrease in the effective tax rate was due to higher income tax
benefits related to share-based compensation recorded in the third
quarter.
(1)
Represents non-GAAP financial measures.
See “Reconciliation of non-GAAP Financial Measures” for a
reconciliation of our non-GAAP measures to the most directly
comparable GAAP financial measure.
STATEMENTS OF FINANCIAL CONDITION HIGHLIGHTS
Assets
Total assets were $9.4 billion as of September 30, 2024, a
decrease of $209.5 million, or 2.2%, compared to $9.6 billion at
June 30, 2024. The decrease was mainly due to a decrease in cash
and cash equivalents of $277.9 million, primarily due to the
repayment during the quarter of the Bank Term Funding Program
advance of $200.0 million, offset by an increase to securities
available-for-sale, mainly from purchases of commercial and
residential mortgage-backed securities.
Asset and Credit Quality
The ACL was $98.9 million as of September 30, 2024, a decrease
of $870,000, or 0.9%, from $99.7 million at June 30, 2024. Net
charge-offs of loans and leases during the third quarter of 2024
were $8.5 million, or 0.49% of average loans and leases, on an
annualized basis. This was a decrease of $1.0 million compared to
net charge-offs of $9.5 million, or 0.56% of average loans and
leases, during the second quarter of 2024. The decrease is
primarily due to lower charge-offs in the conventional
portfolio.
Non-performing assets were $71.0 million, or 0.75% of total
assets, as of September 30, 2024, an increase of $6.5 million from
$64.6 million, or 0.67% of total assets, at June 30, 2024. The
increase was primarily in non-accrual government guaranteed loans.
The government guaranteed portion of non-performing loans included
in non-performing assets was $11.3 million at September 30, 2024
compared to $6.6 million at June 30, 2024, an increase of $4.7
million.
Deposits and Other Liabilities
Total deposits increased $150.7 million to $7.5 billion at
September 30, 2024 compared to $7.3 billion at June 30, 2024. The
increase in deposits in the current quarter was mainly due to
increases in commercial money market accounts and consumer time
deposits.
Total borrowings and other liabilities were $830.1 million at
September 30, 2024, a decrease of $423.5 million from $1.3 billion
at June 30, 2024, primarily driven by a $200.0 million decrease in
Federal Home Loan Bank advances and the repayment of the $200.0
million advance under the Bank Term Funding Program.
Stockholders’ Equity
Total stockholders’ equity was $1.1 billion at September 30,
2024, an increase of $63.3 million, or 6.1%, from June 30, 2024,
primarily due to a decrease in unrealized losses on securities
available-for-sale and an increase in retained earnings from net
income.
Conference Call, Webcast and Slide Presentation
We will host a conference call and webcast at 9:00 a.m. Central
Time on Friday, October 25, 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 097541. A recorded replay can be
accessed through November 8, 2024, by dialing (866) 813-9403;
passcode: 402924.
A slide presentation relating to our third quarter 2024 results
will be accessible prior to the conference call. The slide
presentation and webcast of the conference call can be accessed on
our investor relations website at www.bylinebancorp.com.
About Byline Bancorp, Inc.
Headquartered in Chicago, Byline Bancorp, Inc. is the parent
company of Byline Bank, a full service commercial bank serving
small- and medium-sized businesses, financial sponsors, and
consumers. Byline Bank has approximately $9.4 billion in assets and
operates 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)
September 30,
June 30,
September 30,
(dollars in thousands)
2024
2024
2023
ASSETS
Cash and due from banks
$
77,047
$
68,251
$
71,248
Interest bearing deposits with other
banks
375,549
662,206
357,640
Cash and cash equivalents
452,596
730,457
428,888
Equity and other securities, at fair
value
9,132
8,745
7,902
Securities available-for-sale, at fair
value
1,502,108
1,386,827
1,239,929
Securities held-to-maturity, at amortized
cost
605
606
1,157
Restricted stock, at cost
22,743
31,775
30,505
Loans held for sale
19,955
13,360
7,299
Loans and leases:
Loans and leases
6,879,446
6,891,204
6,613,303
Allowance for credit losses - loans and
leases
(98,860
)
(99,730
)
(105,696
)
Net loans and leases
6,780,586
6,791,474
6,507,607
Servicing assets, at fair value
18,945
19,617
19,743
Premises and equipment, net
63,135
63,919
67,121
Goodwill and other intangible assets,
net
199,443
200,788
205,028
Bank-owned life insurance
99,295
98,519
96,268
Deferred tax assets, net
37,737
48,888
89,841
Accrued interest receivable and other
assets
218,036
238,840
242,080
Total assets
$
9,424,316
$
9,633,815
$
8,943,368
LIABILITIES AND STOCKHOLDERS’
EQUITY
LIABILITIES
Non-interest-bearing demand deposits
$
1,729,908
$
1,762,891
$
1,959,855
Interest-bearing deposits
5,767,979
5,584,290
4,993,835
Total deposits
7,497,887
7,347,181
6,953,690
Other borrowings
518,786
918,738
713,233
Subordinated notes, net
73,997
73,953
73,822
Junior subordinated debentures issued to
capital trusts, net
70,783
70,675
70,336
Accrued interest payable and other
liabilities
166,551
190,254
212,342
Total liabilities
8,328,004
8,600,801
8,023,423
STOCKHOLDERS’ EQUITY
Common stock
454
452
450
Additional paid-in capital
714,864
710,792
708,615
Retained earnings
507,576
481,232
403,368
Treasury stock
(47,904
)
(47,993
)
(50,329
)
Accumulated other comprehensive loss, net
of tax
(78,678
)
(111,469
)
(142,159
)
Total stockholders’ equity
1,096,312
1,033,014
919,945
Total liabilities and stockholders’
equity
$
9,424,316
$
9,633,815
$
8,943,368
BYLINE BANCORP, INC. AND
SUBSIDIARIES
CONSOLIDATED STATEMENTS OF
OPERATIONS (unaudited)
Three Months Ended
September 30,
June 30,
September 30,
(dollars in thousands, except per share
data)
2024
2024
2023
INTEREST AND DIVIDEND INCOME
Interest and fees on loans and leases
$
128,336
$
126,523
$
125,465
Interest on securities
11,260
10,514
8,415
Other interest and dividend income
6,840
4,532
2,710
Total interest and dividend income
146,436
141,569
136,590
INTEREST EXPENSE
Deposits
52,076
47,603
37,163
Other borrowings
3,919
4,460
3,981
Subordinated notes and debentures
2,986
2,980
2,994
Total interest expense
58,981
55,043
44,138
Net interest income
87,455
86,526
92,452
PROVISION FOR CREDIT LOSSES
7,475
6,045
8,803
Net interest income after provision for
credit losses
79,980
80,481
83,649
NON-INTEREST INCOME
Fees and service charges on deposits
2,591
2,548
2,372
Loan servicing revenue
3,174
3,216
3,369
Loan servicing asset revaluation
(2,183
)
(2,468
)
(3,646
)
ATM and interchange fees
1,143
1,163
1,205
Change in fair value of equity securities,
net
388
(390
)
(313
)
Net gains on sales of loans
5,864
6,036
6,473
Wealth management and trust income
1,101
942
939
Other non-interest income
2,307
1,797
1,977
Total non-interest income
14,385
12,844
12,376
NON-INTEREST EXPENSE
Salaries and employee benefits
34,974
33,911
34,969
Occupancy and equipment expense, net
4,373
4,639
5,314
Loan and lease related expenses
703
741
836
Legal, audit, and other professional
fees
3,643
3,708
3,805
Data processing
4,215
4,036
6,472
Net (gain) loss recognized on other real
estate owned and other related expenses
74
(62
)
111
Other intangible assets amortization
expense
1,345
1,345
1,551
Other non-interest expense
5,000
4,892
4,833
Total non-interest expense
54,327
53,210
57,891
INCOME BEFORE PROVISION FOR INCOME
TAXES
40,038
40,115
38,134
PROVISION FOR INCOME TAXES
9,710
10,444
9,912
NET INCOME
$
30,328
$
29,671
$
28,222
EARNINGS PER COMMON SHARE
Basic
$
0.70
$
0.68
$
0.66
Diluted
$
0.69
$
0.68
$
0.65
BYLINE BANCORP, INC. AND
SUBSIDIARIES
SELECTED FINANCIAL DATA
(unaudited)
As of or For the Three Months
Ended
(dollars in thousands, except
share
September 30,
June 30,
September 30,
and per share data)
2024
2024
2023
Earnings per Common Share
Basic earnings per common share
$
0.70
$
0.68
$
0.66
Diluted earnings per common share
$
0.69
$
0.68
$
0.65
Adjusted diluted earnings per common
share(1)(3)
$
0.70
$
0.68
$
0.77
Weighted average common shares outstanding
(basic)
43,516,006
43,361,516
43,025,927
Weighted average common shares outstanding
(diluted)
43,966,189
43,741,840
43,458,110
Common shares outstanding
44,384,706
44,180,829
43,719,203
Cash dividends per common share
$
0.09
$
0.09
$
0.09
Dividend payout ratio on common stock
13.04
%
13.24
%
13.85
%
Book value per common share
$
24.70
$
23.38
$
21.04
Tangible book value per common
share(1)
$
20.21
$
18.84
$
16.35
Key Ratios and Performance Metrics
(annualized where applicable)
Net interest margin
3.88
%
3.98
%
4.46
%
Net interest margin, fully taxable
equivalent (1)(4)
3.89
%
3.99
%
4.47
%
Average cost of deposits
2.76
%
2.63
%
2.13
%
Efficiency ratio(1)(2)
52.02
%
52.19
%
53.75
%
Adjusted efficiency ratio(1)(2)(3)
51.62
%
52.19
%
47.35
%
Non-interest income to total
revenues(1)
14.13
%
12.93
%
11.81
%
Non-interest expense to average assets
2.31
%
2.34
%
2.66
%
Adjusted non-interest expense to average
assets(1)(3)
2.29
%
2.34
%
2.35
%
Return on average stockholders' equity
11.39
%
11.83
%
12.11
%
Adjusted return on average stockholders'
equity(1)(3)
11.53
%
11.83
%
14.30
%
Return on average assets
1.29
%
1.31
%
1.30
%
Adjusted return on average
assets(1)(3)
1.30
%
1.31
%
1.53
%
Pre-tax pre-provision return on average
assets(1)
2.02
%
2.03
%
2.16
%
Adjusted pre-tax pre-provision return on
average assets(1)(3)
2.03
%
2.03
%
2.46
%
Return on average tangible common
stockholders' equity(1)
14.49
%
15.27
%
16.15
%
Adjusted return on average tangible common
stockholders' equity(1)(3)
14.67
%
15.27
%
18.95
%
Non-interest-bearing deposits to total
deposits
23.07
%
23.99
%
28.18
%
Loans and leases held for sale and loans
and lease held for investment to total deposits
92.02
%
93.98
%
95.21
%
Deposits to total liabilities
90.03
%
85.42
%
86.67
%
Deposits per branch
$
162,998
$
159,721
$
144,869
Asset Quality Ratios
Non-performing loans and leases to total
loans and leases held for investment, net before ACL
1.02
%
0.93
%
0.79
%
Total non-performing assets as a
percentage of total assets
0.75
%
0.67
%
0.60
%
ACL to total loans and leases held for
investment, net before ACL
1.44
%
1.45
%
1.60
%
Net charge-offs (annualized) to average
total loans and leases held for investment, net before ACL - loans
and leases
0.49
%
0.56
%
0.33
%
Capital Ratios
Common equity to total assets
11.63
%
10.72
%
10.29
%
Tangible common equity to tangible
assets(1)
9.72
%
8.82
%
8.18
%
Leverage ratio
11.18
%
11.08
%
10.75
%
Common equity tier 1 capital ratio
11.35
%
10.84
%
10.08
%
Tier 1 capital ratio
12.39
%
11.86
%
11.12
%
Total capital ratio
14.41
%
13.86
%
13.17
%
(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
September 30, 2024
June 30, 2024
September 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
$
468,852
$
5,771
4.90
%
$
305,873
$
3,315
4.36
%
$
195,019
$
1,724
3.51
%
Loans and leases(1)
6,827,726
128,336
7.48
%
6,807,934
126,523
7.47
%
6,484,875
125,465
7.68
%
Taxable securities
1,508,987
11,467
3.02
%
1,473,000
10,869
2.97
%
1,371,979
8,465
2.45
%
Tax-exempt securities(2)
156,085
1,091
2.78
%
156,655
1,091
2.80
%
168,805
1,184
2.78
%
Total interest-earning assets
$
8,961,650
$
146,665
6.51
%
$
8,743,462
$
141,798
6.52
%
$
8,220,678
$
136,838
6.60
%
Allowance for credit losses - loans and
leases
(101,001
)
(103,266
)
(108,315
)
All other assets
513,200
500,540
521,982
TOTAL ASSETS
$
9,373,849
$
9,140,736
$
8,634,345
LIABILITIES AND STOCKHOLDERS’ EQUITY
Deposits
Interest checking
$
754,586
$
4,439
2.34
%
$
717,513
$
4,096
2.30
%
$
579,917
$
2,208
1.51
%
Money market accounts
2,386,909
21,371
3.56
%
2,270,231
19,978
3.54
%
2,040,476
16,676
3.24
%
Savings
495,541
190
0.15
%
514,192
194
0.15
%
594,555
228
0.15
%
Time deposits
2,134,587
26,076
4.86
%
1,951,448
23,335
4.81
%
1,706,531
18,051
4.20
%
Total interest-bearing deposits
5,771,623
52,076
3.59
%
5,453,384
47,603
3.51
%
4,921,479
37,163
3.00
%
Other borrowings
474,498
3,919
3.29
%
521,545
4,439
3.42
%
463,561
3,981
3.41
%
Federal funds purchased
—
—
0.00
%
1,401
21
6.05
%
—
—
0.00
%
Subordinated notes and debentures
144,702
2,986
8.21
%
144,548
2,980
8.29
%
144,171
2,994
8.24
%
Total borrowings
619,200
6,905
4.44
%
667,494
7,440
4.48
%
607,732
6,975
4.55
%
Total interest-bearing liabilities
$
6,390,823
$
58,981
3.67
%
$
6,120,878
$
55,043
3.62
%
$
5,529,211
$
44,138
3.17
%
Non-interest-bearing demand deposits
1,741,250
1,817,133
1,987,996
Other liabilities
182,148
193,923
192,860
Total stockholders’ equity
1,059,628
1,008,802
924,278
TOTAL LIABILITIES AND STOCKHOLDERS’
EQUITY
$
9,373,849
$
9,140,736
$
8,634,345
Net interest spread(3)
2.84
%
2.90
%
3.43
%
Net interest income, fully taxable
equivalent
$
87,684
$
86,755
$
92,700
Net interest margin, fully taxable
equivalent(2)(4)
3.89
%
3.99
%
4.47
%
Less: Tax-equivalent adjustment
229
0.01
%
229
0.01
%
248
0.01
%
Net interest income
$
87,455
$
86,526
$
92,452
Net interest margin(4)
3.88
%
3.98
%
4.46
%
Net loan accretion impact on margin
$
2,982
0.13
%
$
3,656
0.17
%
$
10,276
0.50
%
(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:
September 30, 2024
June 30, 2024
September 30, 2023
(dollars in thousands)
Amount
% of Total
Amount
% of Total
Amount
% of Total
Originated loans and leases:
Commercial real estate
$
2,040,072
29.7
%
$
1,924,797
27.9
%
$
1,837,531
27.8
%
Residential real estate
497,034
7.2
%
498,578
7.2
%
454,456
6.9
%
Construction, land development, and other
land
415,636
6.0
%
445,919
6.5
%
406,334
6.1
%
Commercial and industrial
2,476,177
36.0
%
2,493,229
36.2
%
2,286,058
34.6
%
Installment and other
3,839
0.1
%
2,576
0.0
%
2,968
0.0
%
Leasing financing receivables
711,233
10.3
%
710,784
10.3
%
641,032
9.7
%
Total originated loans and leases
$
6,143,991
89.3
%
$
6,075,883
88.1
%
$
5,628,379
85.1
%
Purchased credit deteriorated
loans:
Commercial real estate
$
95,240
1.4
%
$
114,053
1.7
%
$
154,573
2.3
%
Residential real estate
31,362
0.5
%
40,728
0.6
%
47,485
0.7
%
Construction, land development, and other
land
4
0.0
%
9
0.0
%
29,587
0.5
%
Commercial and industrial
14,526
0.2
%
17,796
0.3
%
21,014
0.3
%
Installment and other
110
0.0
%
116
0.0
%
125
0.0
%
Total purchased credit deteriorated
loans
$
141,242
2.1
%
$
172,702
2.6
%
$
252,784
3.8
%
Acquired non-credit-deteriorated loans
and leases:
Commercial real estate
$
227,035
3.3
%
$
254,858
3.7
%
$
296,656
4.5
%
Residential real estate
181,976
2.6
%
188,489
2.7
%
220,091
3.4
%
Construction, land development, and other
land
84,172
1.2
%
84,849
1.2
%
87,087
1.3
%
Commercial and industrial
100,852
1.5
%
113,997
1.7
%
127,253
1.9
%
Installment and other
32
0.0
%
153
0.0
%
153
0.0
%
Leasing financing receivables
146
0.0
%
273
0.0
%
900
0.0
%
Total acquired non-credit-deteriorated
loans and leases
$
594,213
8.6
%
$
642,619
9.3
%
$
732,140
11.1
%
Total loans and leases
$
6,879,446
100.0
%
$
6,891,204
100.0
%
$
6,613,303
100.0
%
Allowance for credit losses - loans and
leases
(98,860
)
(99,730
)
(105,696
)
Total loans and leases, net of allowance
for credit losses - loans and leases
$
6,780,586
$
6,791,474
$
6,507,607
The following table presents the balance
and activity within the allowance for credit losses - loans and
lease for the periods indicated:
Three Months Ended
September 30,
June 30,
September 30,
(dollars in thousands)
2024
2024
2023
ACL - loans and leases, beginning of
period
$
99,730
$
102,366
$
92,665
Adjustment for acquired PCD loans
—
—
10,596
Provision for credit losses - loans and
leases
7,597
6,878
7,865
Net charge-offs - loans and leases
(8,467
)
(9,514
)
(5,430
)
ACL - loans and leases, end of period
$
98,860
$
99,730
$
105,696
Net charge-offs (annualized) to average
total loans and leases held for investment, net before ACL - loans
and leases
0.49
%
0.56
%
0.33
%
Provision for credit losses - loans and
leases to net charge-offs - loans and leases during the period
0.90
x
0.72
x
1.45
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:
September 30, 2024
Change from
(dollars in thousands)
September 30, 2024
June 30, 2024
September 30, 2023
June 30, 2024
September 30, 2023
Non-performing assets:
Non-accrual loans and leases
$
70,507
$
63,808
$
52,070
10.5
%
35.4
%
Past due loans and leases 90 days or more
and still accruing interest
—
—
—
—%
—%
Total non-performing loans and leases
$
70,507
$
63,808
$
52,070
10.5
%
35.4
%
Other real estate owned
532
780
1,671
(31.8
)%
(68.1
)%
Total non-performing assets
$
71,039
$
64,588
$
53,741
10.0
%
32.2
%
Total non-performing loans and leases as a
percentage of total loans and leases
1.02
%
0.93
%
0.79
%
Total non-performing assets as a
percentage of total assets
0.75
%
0.67
%
0.60
%
Allowance for credit losses - loans and
leases as a percentage of non-performing loans and leases
140.21
%
156.30
%
202.99
%
Non-performing assets guaranteed by
U.S. government:
Non-accrual loans guaranteed
$
11,332
$
6,616
$
3,588
71.3
%
215.9
%
Past due loans 90 days or more and still
accruing interest guaranteed
—
—
—
—%
—%
Total non-performing loans guaranteed
$
11,332
$
6,616
$
3,588
71.3
%
215.9
%
Total non-performing loans and leases not
guaranteed as a percentage of total loans and leases
0.86
%
0.83
%
0.73
%
Total non-performing assets not guaranteed
as a percentage of total assets
0.63
%
0.60
%
0.56
%
The following table presents the composition of deposits at the
dates indicated:
September 30, 2024
Change from
(dollars in thousands)
September 30, 2024
June 30, 2024
September 30, 2023
June 30, 2024
September 30, 2023
Non-interest-bearing demand deposits
$
1,729,908
$
1,762,891
$
1,959,855
(1.9
)%
(11.7
)%
Interest-bearing checking accounts
749,721
717,229
592,771
4.5
%
26.5
%
Money market demand accounts
2,426,522
2,323,245
2,062,252
4.4
%
17.7
%
Other savings
489,618
503,935
581,073
(2.8
)%
(15.7
)%
Time deposits (below $250,000)
1,639,658
1,610,308
1,447,053
1.8
%
13.3
%
Time deposits ($250,000 and above)
462,460
429,573
310,686
7.7
%
48.9
%
Total deposits
$
7,497,887
$
7,347,181
$
6,953,690
2.1
%
7.8
%
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
September 30,
June 30,
September 30,
(dollars in thousands, except per share
data)
2024
2024
2023
Net income and earnings per share
excluding significant items:
Reported Net Income
$
30,328
$
29,671
$
28,222
Significant items:
Impairment charges on ROU assets
—
—
394
Merger-related expenses
411
—
6,307
Tax benefit
(32
)
—
(1,617
)
Adjusted Net Income
$
30,707
$
29,671
$
33,306
Reported Diluted Earnings per
Share
$
0.69
$
0.68
$
0.65
Significant items:
Impairment charges on ROU assets
—
—
0.01
Merger-related expenses
0.01
—
0.15
Tax benefit
—
—
(0.04
)
Adjusted Diluted Earnings per
Share
$
0.70
$
0.68
$
0.77
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,
September 30,
June 30,
September 30,
ratios annualized, where
applicable)
2024
2024
2023
Adjusted non-interest expense:
Non-interest expense
$
54,327
$
53,210
$
57,891
Less: Impairment charges on ROU assets
—
—
394
Less: Merger-related expenses
411
—
6,307
Adjusted non-interest expense
$
53,916
$
53,210
$
51,190
Adjusted non-interest expense excluding
amortization of intangible assets:
Adjusted non-interest expense
$
53,916
$
53,210
$
51,190
Less: Amortization of intangible
assets
1,345
1,345
1,551
Adjusted non-interest expense excluding
amortization of intangible assets
$
52,571
$
51,865
$
49,639
Pre-tax pre-provision net
income:
Pre-tax income
$
40,038
$
40,115
$
38,134
Add: Provision for credit losses
7,475
6,045
8,803
Pre-tax pre-provision net income
$
47,513
$
46,160
$
46,937
Adjusted pre-tax pre-provision net
income:
Pre-tax pre-provision net income
$
47,513
$
46,160
$
46,937
Add: Impairment charges on ROU assets
—
—
394
Add: Merger-related expenses
411
—
6,307
Adjusted pre-tax pre-provision net
income
$
47,924
$
46,160
$
53,638
Tax equivalent net interest
income:
Net interest income
$
87,455
$
86,526
$
92,452
Add: Tax-equivalent adjustment
229
229
248
Net interest income, fully taxable
equivalent
$
87,684
$
86,755
$
92,700
Total revenue:
Net interest income
$
87,455
$
86,526
$
92,452
Add: Non-interest income
14,385
12,844
12,376
Total revenue
$
101,840
$
99,370
$
104,828
Tangible common stockholders'
equity:
Total stockholders' equity
$
1,096,312
$
1,033,014
$
919,945
Less: Goodwill and other intangibles
199,443
200,788
205,028
Tangible common stockholders' equity
$
896,869
$
832,226
$
714,917
Tangible assets:
Total assets
$
9,424,316
$
9,633,815
$
8,943,368
Less: Goodwill and other intangibles
199,443
200,788
205,028
Tangible assets
$
9,224,873
$
9,433,027
$
8,738,340
Average tangible common stockholders'
equity:
Average total stockholders' equity
$
1,059,628
$
1,008,802
$
924,278
Less: Average goodwill and other
intangibles
200,091
201,428
202,978
Average tangible common stockholders'
equity
$
859,537
$
807,374
$
721,300
Average tangible assets:
Average total assets
$
9,373,849
$
9,140,736
$
8,634,345
Less: Average goodwill and other
intangibles
200,091
201,428
202,978
Average tangible assets
$
9,173,758
$
8,939,308
$
8,431,367
Tangible net income available to common
stockholders:
Net income available to common
stockholders
$
30,328
$
29,671
$
28,222
Add: After-tax intangible asset
amortization
986
987
1,137
Tangible net income available to common
stockholders
$
31,314
$
30,658
$
29,359
Adjusted tangible net income available
to common stockholders:
Tangible net income available to common
stockholders
$
31,314
$
30,658
$
29,359
Add: Impairment charges on ROU assets
—
—
394
Add: Merger-related expenses
411
—
6,307
Add: Tax benefit on significant items
(32
)
—
(1,617
)
Adjusted tangible net income available to
common stockholders
$
31,693
$
30,658
$
34,443
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
September 30,
June 30,
September 30,
data, ratios annualized, where
applicable)
2024
2024
2023
Pre-tax pre-provision return on average
assets:
Pre-tax pre-provision net income
$
47,513
$
46,160
$
46,937
Average total assets
9,373,849
9,140,736
8,634,345
Pre-tax pre-provision return on average
assets
2.02
%
2.03
%
2.16
%
Adjusted pre-tax pre-provision return
on average assets:
Adjusted pre-tax pre-provision net
income
$
47,924
$
46,160
$
53,638
Average total assets
9,373,849
9,140,736
8,634,345
Adjusted pre-tax pre-provision return on
average assets
2.03
%
2.03
%
2.46
%
Net interest margin, fully taxable
equivalent:
Net interest income, fully taxable
equivalent
$
87,684
$
86,755
$
92,700
Total average interest-earning assets
8,961,650
8,743,462
8,220,678
Net interest margin, fully taxable
equivalent
3.89
%
3.99
%
4.47
%
Non-interest income to total
revenues:
Non-interest income
$
14,385
$
12,844
$
12,376
Total revenues
101,840
99,370
104,828
Non-interest income to total revenues
14.13
%
12.93
%
11.81
%
Adjusted non-interest expense to
average assets:
Adjusted non-interest expense
$
53,916
$
53,210
$
51,190
Average total assets
9,373,849
9,140,736
8,634,345
Adjusted non-interest expense to average
assets
2.29
%
2.34
%
2.35
%
Adjusted efficiency ratio:
Adjusted non-interest expense excluding
amortization of intangible assets
$
52,571
$
51,865
$
49,639
Total revenues
101,840
99,370
104,828
Adjusted efficiency ratio
51.62
%
52.19
%
47.35
%
Adjusted return on average
assets:
Adjusted net income
$
30,707
$
29,671
$
33,306
Average total assets
9,373,849
9,140,736
8,634,345
Adjusted return on average assets
1.30
%
1.31
%
1.53
%
Adjusted return on average
stockholders' equity:
Adjusted net income
$
30,707
$
29,671
$
33,306
Average stockholders' equity
1,059,628
1,008,802
924,278
Adjusted return on average stockholders'
equity
11.53
%
11.83
%
14.30
%
Tangible common equity to tangible
assets:
Tangible common equity
$
896,869
$
832,226
$
714,917
Tangible assets
9,224,873
9,433,027
8,738,340
Tangible common equity to tangible
assets
9.72
%
8.82
%
8.18
%
Return on average tangible common
stockholders' equity:
Tangible net income available to common
stockholders
$
31,314
$
30,658
$
29,359
Average tangible common stockholders'
equity
859,537
807,374
721,300
Return on average tangible common
stockholders' equity
14.49
%
15.27
%
16.15
%
Adjusted return on average tangible
common stockholders' equity:
Adjusted tangible net income available to
common stockholders
$
31,693
$
30,658
$
34,443
Average tangible common stockholders'
equity
859,537
807,374
721,300
Adjusted return on average tangible common
stockholders' equity
14.67
%
15.27
%
18.95
%
Tangible book value per share:
Tangible common equity
$
896,869
$
832,226
$
714,917
Common shares outstanding
44,384,706
44,180,829
43,719,203
Tangible book value per share
$
20.21
$
18.84
$
16.35
View source
version on businesswire.com: https://www.businesswire.com/news/home/20241024505892/en/
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