false000170275000017027502024-01-252024-01-25
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT
PURSUANT TO SECTION 13 OR 15(d)
OF THE SECURITIES EXCHANGE ACT OF 1934
Date of Report (Date of earliest event reported): January 25, 2024
BYLINE BANCORP, INC.
(Exact Name of Registrant as Specified in Its Charter)
Delaware
(State or Other Jurisdiction
of Incorporation)
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001-38139 |
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36-3012593 |
(Commission File Number) |
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(I.R.S. Employer Identification No.) |
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180 North LaSalle Street, Suite 300 |
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Chicago, Illinois |
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60601 |
(Address of Principal Executive Offices) |
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(Zip Code) |
(773) 244-7000
(Registrant’s Telephone Number, Including Area Code)
Not Applicable
(Former Name or Former Address, if Changed Since Last Report)
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):
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☐ |
Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) |
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Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) |
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Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) |
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Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) |
Securities registered pursuant to Section 12(b) of the Act:
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Title of each class |
Trading Symbol(s) |
Name of each exchange on which registered |
Common Stock |
BY |
New York Stock Exchange |
Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).
Emerging growth company ☐
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐
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Item 2.02. |
Results of Operations and Financial Condition. |
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On January 25, 2024, Byline Bancorp, Inc., (“Byline" or the "Company”) issued a press release announcing its financial results for the fourth quarter ended December 31, 2023. A copy of the press release is attached as Exhibit 99.1 and is incorporated herein by reference.
On January 25, 2024, the Company made available on its website a slide presentation regarding the Company’s fourth quarter 2023 financial results, which will be used as part of a publicly accessible conference call on January 26, 2024. A copy of the slide presentation is attached as Exhibit 99.2 and is incorporated herein by reference.
The information included in Item 2.02 this Current Report on Form 8-K (including the information in the attached exhibits 99.1 and 99.2) is being furnished and shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended, nor shall it be deemed incorporated by reference in any filing under the Securities Act of 1933, as amended, except as shall be expressly set forth by specific reference in any such filing.
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Item 9.01. |
Financial Statements and Exhibits. |
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(d) Exhibits.
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, 2022. Any forward-looking statement speaks only as of the date on which it is made, and Byline undertakes no obligation to update any forward-looking statement, whether to reflect events or circumstances after the date on which the statement is made, to reflect new information or the occurrence of unanticipated events, or otherwise unless required under the federal securities laws.
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SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934, as amended, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
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BYLINE BANCORP, INC. |
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Date: January 25, 2024 |
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By: |
/s/ Roberto R. Herencia |
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Name: |
Roberto R. Herencia |
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Title: |
Executive Chairman and Chief Executive Officer |
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Exhibit 99.1
Byline Bancorp, Inc. Reports Fourth Quarter and Full Year 2023 Financial Results
Fourth quarter net income of $29.6 million, $0.68 diluted earnings per share;
Full year net income of $107.9 million, $2.67 diluted earnings per share
Chicago, IL, January 25, 2024 – Byline Bancorp, Inc. (NYSE: BY), today reported:
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For the quarter |
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Full Year Highlights |
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4Q23 |
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3Q23 |
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4Q22 |
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Financial Results (in thousands) |
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Net income increased $20.1 million, or 22.9% |
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Net interest income |
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$ |
86,285 |
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$ |
92,452 |
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$ |
76,604 |
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Non-interest income |
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14,503 |
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12,376 |
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11,455 |
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Positive operating leverage of 6.1% |
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Total Revenue(1) |
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100,788 |
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104,828 |
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88,059 |
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driven by 28.0% increase in PTPP |
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Non-interest expense |
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53,584 |
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57,891 |
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50,500 |
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Pre-tax pre-provision net income (PTPP)(1) |
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47,204 |
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46,937 |
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37,559 |
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Net interest income up $65.3 million, |
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Provision for credit losses |
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7,235 |
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8,803 |
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5,826 |
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or 24.6%; NIM up 31 bps to 4.31% |
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Provision for income taxes |
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10,365 |
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9,912 |
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7,366 |
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Net Income |
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$ |
29,604 |
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$ |
28,222 |
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$ |
24,367 |
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Assets increased by $1.5 billion, through |
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organic growth and Inland acquisition |
Per Share |
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Diluted EPS |
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$ |
0.68 |
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$ |
0.65 |
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$ |
0.65 |
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4Q23 Income Statement Highlights |
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Dividends declared per common share |
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0.09 |
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0.09 |
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0.09 |
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Adjusted net income(1) of $31.8 million, |
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Book value per share |
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22.62 |
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21.04 |
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20.43 |
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or $0.73 per adjusted diluted share(1) |
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Tangible book value per share(1) |
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17.98 |
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16.35 |
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16.19 |
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Record PTPP(1) of $47.2 million |
Balance Sheet & Credit Quality |
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Total deposits |
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$ |
7,176,999 |
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$ |
6,953,690 |
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$ |
5,695,121 |
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Adjusted efficiency ratio(1) of 48.64% |
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Total loans and leases |
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6,702,311 |
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6,620,602 |
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5,469,081 |
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Net charge-offs |
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12,186 |
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5,430 |
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3,179 |
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4Q23 Balance Sheet Highlights |
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Allowance for credit losses (ACL) |
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101,686 |
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105,696 |
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81,924 |
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Deposit growth of $223.3 million, or 12.7%(2) |
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ACL to total loans and leases held for investment |
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1.52% |
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1.60% |
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1.51% |
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Loan growth of $81.7 million, or 4.9%(2) |
Select Ratios |
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Efficiency ratio(1) |
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51.63% |
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53.75% |
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55.53% |
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Loan/deposit ratio of 93.39%, down 182 bps |
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Return on average assets (ROAA) |
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1.34% |
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1.30% |
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1.33% |
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Return on average stockholders' equity |
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12.56% |
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12.11% |
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12.92% |
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Reduced reliance on Brokered CDs and FHLB |
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Return on average tangible common equity(1) |
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16.68% |
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16.15% |
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17.21% |
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advances, down $384.1 million |
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Net Interest Margin (NIM) |
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4.08% |
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4.46% |
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4.39% |
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Common equity to total assets |
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11.15% |
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10.29% |
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10.40% |
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Common equity to assets of 11.15%; |
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Tangible common equity to tangible assets(1) |
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9.06% |
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8.18% |
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8.42% |
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TCE/TA(1) of 9.06%, up 88 bps |
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Common Equity Tier 1 |
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10.35% |
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10.08% |
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10.20% |
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CEO/President Commentary |
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Roberto R. Herencia, Executive Chairman and CEO of Byline Bancorp, commented, “During 2023, we completed a number of strategic initiatives, including the successful merger and integration of Inland Bancorp, Inc. and delivered sound fourth quarter and strong full-year financial results. We were able to meet the needs of our customers and the markets we serve as total deposits increased $1.5 billion and total loans and leases increased $1.2 billion during the year. This stable balance sheet growth helped us achieve the highest level of revenue in Byline's history. We enter 2024 on solid footing and with great momentum to continue growing the value of our franchise." |
(1)Represents non-GAAP financial measures. See “Reconciliation of non-GAAP Financial Measures” for a reconciliation to the most directly comparable GAAP financial measure.
Byline Bancorp, Inc.
Page 2 of 15
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Alberto J. Paracchini, President of Byline Bancorp, added, “We are pleased to end the year delivering strong earnings, balanced deposit and loan and lease growth, robust profitability, and disciplined expense management. We remain resolute in serving our customers’ financial needs while diligently focusing on maintaining our asset quality, capital and liquidity positions. I want to thank everyone who works at Byline for their dedication, talent, and contributions to another successful year.” |
Board Authorizes New Stock Repurchase Program
On December 6, 2023, 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, 2024 until December 31, 2024. Under the previous stock repurchase program that expired on December 31, 2023, the Company did not repurchase any shares during 2023.
Board Declares Cash Dividend of $0.09 per Share
On January 23, 2024, the Company's Board of Directors declared a cash dividend of $0.09 per share, payable on February 20, 2024, to stockholders of record of the Company's common stock as of February 6, 2024.
STATEMENTS OF OPERATIONS HIGHLIGHTS
Net Interest Income
Net interest income for the fourth quarter of 2023 was $86.3 million, a decrease of $6.2 million, or 6.7%, from the third quarter of 2023. The decrease in net interest income was primarily due to an increase of $6.1 million in deposit interest expense due to growth and higher rates, and a decrease of $1.4 million in interest income and fees on loans and leases mainly due to lower accretion income on acquired loans of $5.2 million, offset by growth.
Tax-equivalent net interest margin(1) for the fourth quarter of 2023 was 4.09%, a decrease of 38 basis points compared to the third quarter of 2023. Total net loan accretion income impact on the margin contributed 24 basis points to the net interest margin for the current quarter compared to 50 basis points for the prior quarter.
The average cost of total deposits was 2.42% for the fourth quarter of 2023, an increase of 29 basis points compared to the third quarter of 2023, as a result of higher rates on money market accounts and time deposits. Average non-interest-bearing demand deposits were 27.5% of average total deposits for the current quarter compared to 28.8% during the prior quarter.
Net interest income for the year ended December 31, 2023 was $330.6 million, an increase of $65.3 million, or 24.6%, from the year ended December 31, 2022. The increase in net interest income was primarily due to an increase of $167.6 million in interest income and fees on loans and leases due to growth and accretion income on acquired loans; partially offset by an increase of $101.6 million in deposit interest expense due to higher rates paid and growth.
Tax-equivalent net interest margin(1) for the year ended December 31, 2023 was 4.32%, an increase of 31 basis points compared to year ended December 31, 2022. Total net loan accretion income impact on the margin contributed 22 basis points to the net interest margin for the current year compared to seven basis points for the prior year.
The average cost of total deposits was 1.90% for the year ended December 31, 2023, an increase of 154 basis points compared to the year ended December 31, 2022, as a result of higher rates on money market accounts and time deposits. Average non-interest-bearing demand deposits were 30.7% of average total deposits for the current year compared to 40.4% during the prior year.
Provision for Credit Losses
The provision for credit losses was $7.2 million for the fourth quarter of 2023, a decrease of $1.6 million compared to $8.8 million for the third quarter of 2023, mainly attributed to a $2.7 million provision allocated for the acquired non-credit-deteriorated loans resulting from acquisition accounting taken in the prior quarter, partially offset by impairments on non-performing loans. The provision for credit losses for the current quarter is comprised of a provision for loan and lease losses of $8.2 million and a recapture for unfunded commitments of $940,000.
The provision for credit losses was $31.7 million for the year ended December 31, 2023, an increase of $7.8 million compared to $23.9 million for the year ended December 31, 2022, mainly attributed to an increase in non-performing loans and acquired non-credit-deteriorated loans. The provision for credit losses for the current year is comprised of a provision for loan and lease losses of $32.2 million and a recapture for unfunded commitments of $567,000.
(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.
Byline Bancorp, Inc.
Page 3 of 15
Non-interest Income
Non-interest income for the fourth quarter of 2023 was $14.5 million, an increase of $2.1 million, or 17.2%, compared to $12.4 million for the third quarter of 2023. The increase in total non-interest income was primarily due to a $2.4 million decrease in the downward valuation of the loan servicing asset reflecting lower discount rate and improved secondary market conditions, and a $1.2 million gain on the change in fair value of equity securities, partially offset by a decrease of $993,000 in the net gains on sales of loans due to a lower volume of loans sold. During the fourth quarter of 2023, we sold $89.1 million of U.S. government guaranteed loans compared to $101.1 million during the third quarter of 2023.
Non-interest income for the year ended December 31, 2023 was $56.3 million, a decrease of $1.0 million, or 1.7%, compared to $57.3 million for the year ended December 31, 2022. The decrease in total non-interest income was primarily due to a decrease in net gains on sales of loans of $9.1 million, partially offset by a $6.7 million decrease in the downward valuation on the loan servicing asset, reflecting a lower discount rate and improved secondary market conditions. During the current year, we sold $348.4 million of U.S. government guaranteed loans compared to $382.2 million during the prior year.
Non-interest Expense
Non-interest expense for the fourth quarter of 2023 was $53.6 million, a decrease of $4.3 million, or 7.4%, from $57.9 million for the third quarter of 2023. The decrease in total non-interest expense was mainly due to a decrease of $3.0 million in salaries and employee benefits, and decreases of $1.5 million in both data processing and legal, audit and other professional, primarily driven by merger-related expenses taken in the third quarter.
Our efficiency ratio was 51.63% for the fourth quarter of 2023 compared to 53.75% for the third quarter of 2023, an improvement of 212 basis points. Excluding significant items, our adjusted efficiency ratio(1) for the fourth quarter 2023 was 48.64%, compared to 47.35% for the third quarter of 2023.
Non-interest expense for the year ended December 31, 2023 was $209.6 million, an increase of $25.5 million, or 13.9%, from $184.1 million for the year ended December 31, 2022. The increase in total non-interest expense was mainly due to the Inland acquisition.
Our efficiency ratio was 52.62% for the year ended December 31, 2023 compared to 54.99% for the year ended December 31, 2022, an improvement of 237 basis points. Excluding significant items, our adjusted efficiency ratio(1) for the current year was 49.61%, compared to 54.70% for the prior year.
Income Taxes
We recorded income tax expense of $10.4 million during the fourth quarter of 2023, compared to $9.9 million during the third quarter of 2023. The effective tax rate was 25.9% and 26.0% for the fourth quarter of 2023 and third quarter of 2023, respectively.
We recorded income tax expense of $37.8 million during the year ended December 31, 2023, compared to $26.7 million during the year ended December 31, 2022. The effective tax rate was 25.9% and 23.3% for the current year and prior year, respectively.
(1) Represents non-GAAP financial measures. See “Reconciliation of non-GAAP Financial Measures” for a reconciliation of our non-GAAP measures to the most directly comparable GAAP financial measure.
Byline Bancorp, Inc.
Page 4 of 15
STATEMENTS OF FINANCIAL CONDITION HIGHLIGHTS
Assets
Total assets were $8.9 billion as of December 31, 2023, a decrease of $61.4 million, or 0.7%, compared to $8.9 billion at September 30, 2023 and an increase of $1.5 billion from $7.4 billion at December 31, 2022.
The current quarter decrease was primarily due to a decrease in cash and cash equivalents of $202.8 million due to cash management strategies, offset by an increase in net loans and leases of $75.0 million mainly due to the increases in commercial banking and lease financings, and an increase in securities available-for-sale of $102.6 million, driven by an increase in fair values. The increase from the prior year is primarily due to the Inland acquisition and organic loan and lease growth.
Non-performing loans and leases were $64.1 million at December 31, 2023, an increase of $12.0 million from $52.1 million at September 30, 2023, and $28.0 million from $36.0 million at December 31, 2022. The increases were primarily the result of increases to purchased credit deteriorated loans and increases in non-performing commercial real estate loans and commercial and industrial loans.
Allowance for Credit Losses ("ACL") - Loans and Leases
The ACL was $101.7 million as of December 31, 2023, a decrease of $4.0 million, or 3.8%, from $105.7 million at September 30, 2023, mainly due to net charge-offs. The ACL increase of $19.8 million from $81.9 million as of December 31, 2022 is mainly due to loan growth, adjustment for acquired purchase credit deteriorated loans, and an increase in non-performing loans.
Net charge-offs of loans and leases during the fourth quarter of 2023 were $12.2 million, or 0.73% of average loans and leases, on an annualized basis. This was an increase of $6.8 million compared to net charge-offs of $5.4 million, or 0.33% of average loans and leases, during the third quarter of 2023. Increases in the current quarter are primarily due to the resolution of impaired commercial and industrial loans and commercial real estate loans.
Net charge-offs of loans and leases during the year ended December 31, 2023 were $23.1 million, or 0.38% of average loans and leases. This was an increase of $15.1 million compared to net charge-offs of $7.9 million, or 0.16% of average loans and leases, during the year ended December 31, 2022. Increases for the full year were mainly driven by resolutions on purchased credit deteriorated loans and commercial real estate loans.
Deposits and Other Liabilities
Total deposits increased $223.3 million to $7.2 billion at December 31, 2023 compared to $7.0 billion at September 30, 2023 and $5.7 billion as of December 31, 2022. The increase in deposits in the current quarter was mainly due to organic growth. Time deposit growth of $127.2 million was principally due to increased personal time deposits. Money market growth of $203.8 million was due to increases in consumer and commercial deposits. Non-interest-bearing demand deposits decreased $54.0 million primarily due to lower consumer deposits. Increases for the full year were primarily driven by the Inland acquisition and organic deposit growth, and were impacted by shifting deposit mix due to the rising interest rate environment.
Total borrowings and other liabilities were $714.8 million at December 31, 2023, a decrease of $354.8 million from $1.1 billion at September 30, 2023, and a decrease of $187.0 million from $902.0 million at December 31, 2022. These decreases were primarily driven by lower Federal Home Loan Bank advances.
Stockholders’ Equity
Total stockholders’ equity was $990.2 million at December 31, 2023, increase of $70.2 million from $919.9 million at September 30, 2023, and an increase of $224.5 million from December 31, 2022. The quarterly increase was primarily due to increases in other comprehensive income and retained earnings as a result of net income. The full year increase was primarily due to merger consideration and retained earnings as a result of 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.
Byline Bancorp, Inc.
Page 5 of 15
Conference Call, Webcast and Slide Presentation
We will host a conference call and webcast at 9:00 a.m. Central Time on Friday, January 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 183253. A recorded replay can be accessed through February 9, 2024, by dialing (866) 813-9403; passcode: 953063.
A slide presentation relating to our fourth quarter 2023 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 $8.9 billion in assets and operates 48 branch locations throughout the Chicago and Milwaukee metropolitan areas. Byline Bank offers a broad range of commercial and community banking products and services including small ticket equipment leasing solutions and is one of the top Small Business Administration lenders in the United States.
Forward-Looking Statements
This communication contains forward-looking statements within the meaning of the U.S. federal securities laws. Forward-looking statements include, without limitation, statements concerning plans, estimates, calculations, forecasts and projections with respect to the anticipated future performance of the Company. These statements are often, but not always, made through the use of words or phrases such as ‘‘may’’, ‘‘might’’, ‘‘should’’, ‘‘could’’, ‘‘predict’’, ‘‘potential’’, ‘‘believe’’, ‘‘expect’’, ‘‘continue’’, ‘‘will’’, ‘‘anticipate’’, ‘‘seek’’, ‘‘estimate’’, ‘‘intend’’, ‘‘plan’’, ‘‘projection’’, ‘‘would’’, ‘‘annualized’’, “target” and ‘‘outlook’’, or the negative version of those words or other comparable words or phrases of a future or forward-looking nature. Forward-looking statements involve estimates and known and unknown risks, and reflect various assumptions and involve elements of subjective judgment and analysis, which may or may not prove to be correct, and which are subject to uncertainties and contingencies outside the control of Byline and its respective affiliates, directors, employees and other representatives, which could cause actual results to differ materially from those presented in this communication.
No representations, warranties or guarantees are or will be made by Byline as to the reliability, accuracy or completeness of any forward-looking statements contained in this communication or that such forward-looking statements are or will remain based on reasonable assumptions. You should not place undue reliance on any forward-looking statements contained in this communication.
Certain risks and important factors that could affect Byline’s future results are identified in our Annual Report on Form 10-K and other reports we file with the Securities and Exchange Commission, including among other things under the heading “Risk Factors” in our Annual Report on Form 10-K for the year ended December 31, 2022. Any forward-looking statement speaks only as of the date on which it is made, and Byline undertakes no obligation to update any forward-looking statement, whether to reflect events or circumstances after the date on which the statement is made, to reflect new information or the occurrence of unanticipated events, or otherwise unless required under the federal securities laws.
Contacts:
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Investors/Media: |
Brooks Rennie |
Investor Relations Director |
312-660-5805 |
brennie@bylinebank.com |
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Byline Bancorp, Inc.
Page 6 of 15
BYLINE BANCORP, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION (unaudited)
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December 31, |
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September 30, |
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December 31, |
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(dollars in thousands) |
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2023 |
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2023 |
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2022 |
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ASSETS |
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Cash and due from banks |
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$ |
60,431 |
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$ |
71,248 |
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$ |
62,274 |
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Interest bearing deposits with other banks |
|
|
165,705 |
|
|
|
357,640 |
|
|
|
117,079 |
|
Cash and cash equivalents |
|
|
226,136 |
|
|
|
428,888 |
|
|
|
179,353 |
|
Equity and other securities, at fair value |
|
|
8,743 |
|
|
|
7,902 |
|
|
|
7,989 |
|
Securities available-for-sale, at fair value |
|
|
1,342,480 |
|
|
|
1,239,929 |
|
|
|
1,174,431 |
|
Securities held-to-maturity, at amortized cost |
|
|
1,157 |
|
|
|
1,157 |
|
|
|
2,705 |
|
Restricted stock, at cost |
|
|
16,304 |
|
|
|
30,505 |
|
|
|
28,202 |
|
Loans held for sale |
|
|
18,005 |
|
|
|
7,299 |
|
|
|
47,823 |
|
Loans and leases: |
|
|
|
|
|
|
|
|
|
Loans and leases |
|
|
6,684,306 |
|
|
|
6,613,303 |
|
|
|
5,421,258 |
|
Allowance for credit losses - loans and leases |
|
|
(101,686 |
) |
|
|
(105,696 |
) |
|
|
(81,924 |
) |
Net loans and leases |
|
|
6,582,620 |
|
|
|
6,507,607 |
|
|
|
5,339,334 |
|
Servicing assets, at fair value |
|
|
19,844 |
|
|
|
19,743 |
|
|
|
19,172 |
|
Premises and equipment, net |
|
|
66,627 |
|
|
|
67,121 |
|
|
|
56,798 |
|
Other real estate owned, net |
|
|
1,200 |
|
|
|
1,671 |
|
|
|
4,717 |
|
Goodwill and other intangible assets, net |
|
|
203,478 |
|
|
|
205,028 |
|
|
|
158,887 |
|
Bank-owned life insurance |
|
|
96,900 |
|
|
|
96,268 |
|
|
|
82,093 |
|
Deferred tax assets, net |
|
|
50,058 |
|
|
|
89,841 |
|
|
|
68,213 |
|
Accrued interest receivable and other assets |
|
|
248,415 |
|
|
|
240,409 |
|
|
|
193,224 |
|
Total assets |
|
$ |
8,881,967 |
|
|
$ |
8,943,368 |
|
|
$ |
7,362,941 |
|
LIABILITIES AND STOCKHOLDERS’ EQUITY |
|
|
|
|
|
|
|
|
|
LIABILITIES |
|
|
|
|
|
|
|
|
|
Non-interest-bearing demand deposits |
|
$ |
1,905,876 |
|
|
$ |
1,959,855 |
|
|
$ |
2,138,645 |
|
Interest-bearing deposits |
|
|
5,271,123 |
|
|
|
4,993,835 |
|
|
|
3,556,476 |
|
Total deposits |
|
|
7,176,999 |
|
|
|
6,953,690 |
|
|
|
5,695,121 |
|
Other borrowings |
|
|
395,190 |
|
|
|
713,233 |
|
|
|
640,399 |
|
Subordinated notes, net |
|
|
73,866 |
|
|
|
73,822 |
|
|
|
73,691 |
|
Junior subordinated debentures issued to capital trusts, net |
|
|
70,452 |
|
|
|
70,336 |
|
|
|
37,338 |
|
Accrued expenses and other liabilities |
|
|
175,309 |
|
|
|
212,342 |
|
|
|
150,576 |
|
Total liabilities |
|
|
7,891,816 |
|
|
|
8,023,423 |
|
|
|
6,597,125 |
|
STOCKHOLDERS’ EQUITY |
|
|
|
|
|
|
|
|
|
Common stock |
|
|
451 |
|
|
|
450 |
|
|
|
389 |
|
Additional paid-in capital |
|
|
710,488 |
|
|
|
708,615 |
|
|
|
598,297 |
|
Retained earnings |
|
|
429,036 |
|
|
|
403,368 |
|
|
|
335,794 |
|
Treasury stock |
|
|
(49,707 |
) |
|
|
(50,329 |
) |
|
|
(51,114 |
) |
Accumulated other comprehensive loss, net of tax |
|
|
(100,117 |
) |
|
|
(142,159 |
) |
|
|
(117,550 |
) |
Total stockholders’ equity |
|
|
990,151 |
|
|
|
919,945 |
|
|
|
765,816 |
|
Total liabilities and stockholders’ equity |
|
$ |
8,881,967 |
|
|
$ |
8,943,368 |
|
|
$ |
7,362,941 |
|
Byline Bancorp, Inc.
Page 7 of 15
BYLINE BANCORP, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS (unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended |
|
|
Year Ended |
|
(dollars in thousands, |
|
December 31, |
|
|
September 30, |
|
|
December 31, |
|
|
December 31, |
|
|
December 31, |
|
except per share data) |
|
2023 |
|
|
2023 |
|
|
2022 |
|
|
2023 |
|
|
2022 |
|
INTEREST AND DIVIDEND INCOME |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest and fees on loans and leases |
|
$ |
124,042 |
|
|
$ |
125,465 |
|
|
$ |
85,720 |
|
|
$ |
440,984 |
|
|
$ |
273,412 |
|
Interest on securities |
|
|
9,227 |
|
|
|
8,415 |
|
|
|
6,569 |
|
|
|
30,801 |
|
|
|
25,390 |
|
Other interest and dividend income |
|
|
2,345 |
|
|
|
2,710 |
|
|
|
1,515 |
|
|
|
7,693 |
|
|
|
2,757 |
|
Total interest and dividend income |
|
|
135,614 |
|
|
|
136,590 |
|
|
|
93,804 |
|
|
|
479,478 |
|
|
|
301,559 |
|
INTEREST EXPENSE |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Deposits |
|
|
43,252 |
|
|
|
37,163 |
|
|
|
10,610 |
|
|
|
121,436 |
|
|
|
19,796 |
|
Other borrowings |
|
|
3,051 |
|
|
|
3,981 |
|
|
|
4,598 |
|
|
|
17,161 |
|
|
|
9,322 |
|
Subordinated notes and debentures |
|
|
3,026 |
|
|
|
2,994 |
|
|
|
1,992 |
|
|
|
10,260 |
|
|
|
7,111 |
|
Total interest expense |
|
|
49,329 |
|
|
|
44,138 |
|
|
|
17,200 |
|
|
|
148,857 |
|
|
|
36,229 |
|
Net interest income |
|
|
86,285 |
|
|
|
92,452 |
|
|
|
76,604 |
|
|
|
330,621 |
|
|
|
265,330 |
|
PROVISION FOR CREDIT LOSSES |
|
|
7,235 |
|
|
|
8,803 |
|
|
|
5,826 |
|
|
|
31,653 |
|
|
|
23,879 |
|
Net interest income after provision for credit losses |
|
|
79,050 |
|
|
|
83,649 |
|
|
|
70,778 |
|
|
|
298,968 |
|
|
|
241,451 |
|
NON-INTEREST INCOME |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Fees and service charges on deposits |
|
|
2,486 |
|
|
|
2,372 |
|
|
|
2,081 |
|
|
|
9,211 |
|
|
|
8,152 |
|
Loan servicing revenue |
|
|
3,377 |
|
|
|
3,369 |
|
|
|
3,293 |
|
|
|
13,503 |
|
|
|
13,479 |
|
Loan servicing asset revaluation |
|
|
(1,234 |
) |
|
|
(3,646 |
) |
|
|
(3,534 |
) |
|
|
(5,089 |
) |
|
|
(11,743 |
) |
ATM and interchange fees |
|
|
1,082 |
|
|
|
1,205 |
|
|
|
1,250 |
|
|
|
4,462 |
|
|
|
4,437 |
|
Net realized gains on securities available-for-sale |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
50 |
|
Change in fair value of equity securities, net |
|
|
841 |
|
|
|
(313 |
) |
|
|
710 |
|
|
|
1,071 |
|
|
|
(603 |
) |
Net gains on sales of loans |
|
|
5,480 |
|
|
|
6,473 |
|
|
|
5,509 |
|
|
|
22,805 |
|
|
|
31,899 |
|
Wealth management and trust income |
|
|
1,256 |
|
|
|
939 |
|
|
|
864 |
|
|
|
4,158 |
|
|
|
3,807 |
|
Other non-interest income |
|
|
1,215 |
|
|
|
1,977 |
|
|
|
1,282 |
|
|
|
6,194 |
|
|
|
7,836 |
|
Total non-interest income |
|
|
14,503 |
|
|
|
12,376 |
|
|
|
11,455 |
|
|
|
56,315 |
|
|
|
57,314 |
|
NON-INTEREST EXPENSE |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Salaries and employee benefits |
|
|
31,974 |
|
|
|
34,969 |
|
|
|
31,808 |
|
|
|
126,979 |
|
|
|
118,051 |
|
Occupancy and equipment expense, net |
|
|
4,346 |
|
|
|
5,314 |
|
|
|
3,532 |
|
|
|
18,508 |
|
|
|
16,988 |
|
Impairment charge on assets held for sale |
|
|
1,980 |
|
|
|
— |
|
|
|
372 |
|
|
|
2,000 |
|
|
|
372 |
|
Loan and lease related expenses |
|
|
649 |
|
|
|
836 |
|
|
|
1,126 |
|
|
|
2,936 |
|
|
|
1,707 |
|
Legal, audit, and other professional fees |
|
|
2,352 |
|
|
|
3,805 |
|
|
|
3,204 |
|
|
|
12,946 |
|
|
|
10,357 |
|
Data processing |
|
|
4,982 |
|
|
|
6,472 |
|
|
|
3,406 |
|
|
|
19,509 |
|
|
|
13,358 |
|
Net loss recognized on other real estate owned and other related expenses |
|
|
89 |
|
|
|
111 |
|
|
|
221 |
|
|
|
385 |
|
|
|
708 |
|
Other intangible assets amortization expense |
|
|
1,550 |
|
|
|
1,551 |
|
|
|
1,596 |
|
|
|
6,011 |
|
|
|
6,671 |
|
Other non-interest expense |
|
|
5,662 |
|
|
|
4,833 |
|
|
|
5,235 |
|
|
|
20,329 |
|
|
|
15,870 |
|
Total non-interest expense |
|
|
53,584 |
|
|
|
57,891 |
|
|
|
50,500 |
|
|
|
209,603 |
|
|
|
184,082 |
|
INCOME BEFORE PROVISION FOR INCOME TAXES |
|
|
39,969 |
|
|
|
38,134 |
|
|
|
31,733 |
|
|
|
145,680 |
|
|
|
114,683 |
|
PROVISION FOR INCOME TAXES |
|
|
10,365 |
|
|
|
9,912 |
|
|
|
7,366 |
|
|
|
37,802 |
|
|
|
26,729 |
|
NET INCOME |
|
$ |
29,604 |
|
|
$ |
28,222 |
|
|
$ |
24,367 |
|
|
$ |
107,878 |
|
|
$ |
87,954 |
|
Dividends on preferred shares |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
196 |
|
INCOME AVAILABLE TO COMMON STOCKHOLDERS |
|
$ |
29,604 |
|
|
$ |
28,222 |
|
|
$ |
24,367 |
|
|
$ |
107,878 |
|
|
$ |
87,758 |
|
EARNINGS PER COMMON SHARE |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic |
|
$ |
0.69 |
|
|
$ |
0.66 |
|
|
$ |
0.66 |
|
|
$ |
2.69 |
|
|
$ |
2.37 |
|
Diluted |
|
$ |
0.68 |
|
|
$ |
0.65 |
|
|
$ |
0.65 |
|
|
$ |
2.67 |
|
|
$ |
2.34 |
|
Byline Bancorp, Inc.
Page 8 of 15
BYLINE BANCORP, INC. AND SUBSIDIARIES
SELECTED FINANCIAL DATA (unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
As of or For the Three Months Ended |
|
|
As of or For the Year Ended |
|
(dollars in thousands, except share |
December 31, |
|
|
September 30, |
|
|
December 31, |
|
|
December 31, |
|
|
December 31, |
|
and per share data) |
2023 |
|
|
2023 |
|
|
2022 |
|
|
2023 |
|
|
2022 |
|
Earnings per Common Share |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic earnings per common share |
$ |
0.69 |
|
|
$ |
0.66 |
|
|
$ |
0.66 |
|
|
$ |
2.69 |
|
|
$ |
2.37 |
|
Diluted earnings per common share |
$ |
0.68 |
|
|
$ |
0.65 |
|
|
$ |
0.65 |
|
|
$ |
2.67 |
|
|
$ |
2.34 |
|
Adjusted diluted earnings per common share(1)(3) |
$ |
0.73 |
|
|
$ |
0.77 |
|
|
$ |
0.67 |
|
|
$ |
2.89 |
|
|
$ |
2.36 |
|
Weighted average common shares outstanding (basic) |
|
43,065,294 |
|
|
|
43,025,927 |
|
|
|
36,856,221 |
|
|
|
40,045,208 |
|
|
|
36,972,972 |
|
Weighted average common shares outstanding (diluted) |
|
43,537,778 |
|
|
|
43,458,110 |
|
|
|
37,360,113 |
|
|
|
40,445,553 |
|
|
|
37,476,120 |
|
Common shares outstanding |
|
43,764,056 |
|
|
|
43,719,203 |
|
|
|
37,492,775 |
|
|
|
43,764,056 |
|
|
|
37,492,775 |
|
Cash dividends per common share |
$ |
0.09 |
|
|
$ |
0.09 |
|
|
$ |
0.09 |
|
|
$ |
0.36 |
|
|
$ |
0.36 |
|
Dividend payout ratio on common stock |
|
13.24 |
% |
|
|
13.85 |
% |
|
|
13.85 |
% |
|
|
13.48 |
% |
|
|
15.38 |
% |
Book value per common share |
$ |
22.62 |
|
|
$ |
21.04 |
|
|
$ |
20.43 |
|
|
$ |
22.62 |
|
|
$ |
20.43 |
|
Tangible book value per common share(1) |
$ |
17.98 |
|
|
$ |
16.35 |
|
|
$ |
16.19 |
|
|
$ |
17.98 |
|
|
$ |
16.19 |
|
Key Ratios and Performance Metrics (annualized where applicable) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net interest margin |
|
4.08 |
% |
|
|
4.46 |
% |
|
|
4.39 |
% |
|
|
4.31 |
% |
|
|
4.00 |
% |
Net interest margin, fully taxable equivalent (1)(4) |
|
4.09 |
% |
|
|
4.47 |
% |
|
|
4.40 |
% |
|
|
4.32 |
% |
|
|
4.01 |
% |
Average cost of deposits |
|
2.42 |
% |
|
|
2.13 |
% |
|
|
0.73 |
% |
|
|
1.90 |
% |
|
|
0.36 |
% |
Efficiency ratio(1)(2) |
|
51.63 |
% |
|
|
53.75 |
% |
|
|
55.53 |
% |
|
|
52.62 |
% |
|
|
54.99 |
% |
Adjusted efficiency ratio(1)(2)(3) |
|
48.64 |
% |
|
|
47.35 |
% |
|
|
54.50 |
% |
|
|
49.61 |
% |
|
|
54.70 |
% |
Non-interest income to total revenues(1) |
|
14.39 |
% |
|
|
11.81 |
% |
|
|
13.01 |
% |
|
|
14.55 |
% |
|
|
17.76 |
% |
Non-interest expense to average assets |
|
2.42 |
% |
|
|
2.66 |
% |
|
|
2.76 |
% |
|
|
2.60 |
% |
|
|
2.62 |
% |
Adjusted non-interest expense to average assets(1)(3) |
|
2.28 |
% |
|
|
2.35 |
% |
|
|
2.71 |
% |
|
|
2.46 |
% |
|
|
2.61 |
% |
Return on average stockholders' equity |
|
12.56 |
% |
|
|
12.11 |
% |
|
|
12.92 |
% |
|
|
12.50 |
% |
|
|
11.33 |
% |
Adjusted return on average stockholders' equity(1)(3) |
|
13.50 |
% |
|
|
14.30 |
% |
|
|
13.34 |
% |
|
|
13.53 |
% |
|
|
11.43 |
% |
Return on average assets |
|
1.34 |
% |
|
|
1.30 |
% |
|
|
1.33 |
% |
|
|
1.34 |
% |
|
|
1.25 |
% |
Adjusted return on average assets(1)(3) |
|
1.44 |
% |
|
|
1.53 |
% |
|
|
1.37 |
% |
|
|
1.45 |
% |
|
|
1.26 |
% |
Pre-tax pre-provision return on average assets(1) |
|
2.13 |
% |
|
|
2.16 |
% |
|
|
2.05 |
% |
|
|
2.20 |
% |
|
|
1.97 |
% |
Adjusted pre-tax pre-provision return on average assets(1)(3) |
|
2.27 |
% |
|
|
2.46 |
% |
|
|
2.10 |
% |
|
|
2.35 |
% |
|
|
1.99 |
% |
Return on average tangible common stockholders' equity(1) |
|
16.68 |
% |
|
|
16.15 |
% |
|
|
17.21 |
% |
|
|
16.46 |
% |
|
|
15.15 |
% |
Adjusted return on average tangible common stockholders' equity(1)(3) |
|
17.89 |
% |
|
|
18.95 |
% |
|
|
17.75 |
% |
|
|
17.76 |
% |
|
|
15.28 |
% |
Non-interest-bearing deposits to total deposits |
|
26.56 |
% |
|
|
28.18 |
% |
|
|
37.55 |
% |
|
|
26.56 |
% |
|
|
37.55 |
% |
Loans and leases held for sale and loans and lease held for investment to total deposits |
|
93.39 |
% |
|
|
95.21 |
% |
|
|
96.03 |
% |
|
|
93.39 |
% |
|
|
96.03 |
% |
Deposits to total liabilities |
|
90.94 |
% |
|
|
86.67 |
% |
|
|
86.33 |
% |
|
|
90.94 |
% |
|
|
86.33 |
% |
Deposits per branch |
$ |
149,521 |
|
|
$ |
144,869 |
|
|
$ |
149,872 |
|
|
$ |
149,521 |
|
|
$ |
149,872 |
|
Asset Quality Ratios |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-performing loans and leases to total loans and leases held for investment, net before ACL |
|
0.96 |
% |
|
|
0.79 |
% |
|
|
0.66 |
% |
|
|
0.96 |
% |
|
|
0.66 |
% |
ACL to total loans and leases held for investment, net before ACL |
|
1.52 |
% |
|
|
1.60 |
% |
|
|
1.51 |
% |
|
|
1.52 |
% |
|
|
1.51 |
% |
Net charge-offs to average total loans and leases held for investment, net before ACL - loans and leases |
|
0.73 |
% |
|
|
0.33 |
% |
|
|
0.24 |
% |
|
|
0.38 |
% |
|
|
0.16 |
% |
Capital Ratios |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Common equity to total assets |
|
11.15 |
% |
|
|
10.29 |
% |
|
|
10.40 |
% |
|
|
11.15 |
% |
|
|
10.40 |
% |
Tangible common equity to tangible assets(1) |
|
9.06 |
% |
|
|
8.18 |
% |
|
|
8.42 |
% |
|
|
9.06 |
% |
|
|
8.42 |
% |
Leverage ratio |
|
10.86 |
% |
|
|
10.75 |
% |
|
|
10.29 |
% |
|
|
10.86 |
% |
|
|
10.29 |
% |
Common equity tier 1 capital ratio |
|
10.35 |
% |
|
|
10.08 |
% |
|
|
10.20 |
% |
|
|
10.35 |
% |
|
|
10.20 |
% |
Tier 1 capital ratio |
|
11.39 |
% |
|
|
11.12 |
% |
|
|
10.85 |
% |
|
|
11.39 |
% |
|
|
10.85 |
% |
Total capital ratio |
|
13.38 |
% |
|
|
13.17 |
% |
|
|
13.00 |
% |
|
|
13.38 |
% |
|
|
13.00 |
% |
(1) Represents a non-GAAP financial measure. See “Reconciliation of non-GAAP Financial Measures” for a reconciliation of our non-GAAP measures to the most directly comparable GAAP financial measure.
(2) Represents non-interest expense less amortization of intangible assets divided by net interest income and non-interest income.
(3) Calculation excludes merger-related expenses and impairment charges on assets held for sale and ROU assets
(4) Interest income and rates include the effects of a tax equivalent adjustment to adjust tax exempt investment income on tax exempt investment securities to a fully taxable basis, assuming a federal income tax rate of 21%.
Byline Bancorp, Inc.
Page 9 of 15
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 |
|
|
December 31, 2023 |
|
|
September 30, 2023 |
|
|
December 31, 2022 |
|
(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 |
$ |
201,862 |
|
|
$ |
1,822 |
|
|
|
3.58 |
% |
|
$ |
195,019 |
|
|
$ |
1,724 |
|
|
|
3.51 |
% |
|
$ |
89,367 |
|
|
$ |
234 |
|
|
|
1.04 |
% |
Loans and leases(1) |
|
6,632,827 |
|
|
|
124,042 |
|
|
|
7.42 |
% |
|
|
6,484,875 |
|
|
|
125,465 |
|
|
|
7.68 |
% |
|
|
5,389,210 |
|
|
|
85,720 |
|
|
|
6.31 |
% |
Taxable securities |
|
1,389,580 |
|
|
|
8,848 |
|
|
|
2.53 |
% |
|
|
1,371,979 |
|
|
|
8,465 |
|
|
|
2.45 |
% |
|
|
1,288,750 |
|
|
|
7,043 |
|
|
|
2.17 |
% |
Tax-exempt securities(2) |
|
163,608 |
|
|
|
1,142 |
|
|
|
2.77 |
% |
|
|
168,805 |
|
|
|
1,184 |
|
|
|
2.78 |
% |
|
|
155,562 |
|
|
|
1,021 |
|
|
|
2.60 |
% |
Total interest-earning assets |
$ |
8,387,877 |
|
|
$ |
135,854 |
|
|
|
6.43 |
% |
|
$ |
8,220,678 |
|
|
$ |
136,838 |
|
|
|
6.60 |
% |
|
$ |
6,922,889 |
|
|
$ |
94,018 |
|
|
|
5.39 |
% |
Allowance for credit losses - loans and leases |
|
(106,474 |
) |
|
|
|
|
|
|
|
|
(108,315 |
) |
|
|
|
|
|
|
|
|
(81,815 |
) |
|
|
|
|
|
|
All other assets |
|
506,233 |
|
|
|
|
|
|
|
|
|
521,982 |
|
|
|
|
|
|
|
|
|
424,979 |
|
|
|
|
|
|
|
TOTAL ASSETS |
$ |
8,787,636 |
|
|
|
|
|
|
|
|
$ |
8,634,345 |
|
|
|
|
|
|
|
|
$ |
7,266,053 |
|
|
|
|
|
|
|
LIABILITIES AND STOCKHOLDERS’ EQUITY |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Deposits |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest checking |
$ |
570,706 |
|
|
$ |
2,335 |
|
|
|
1.62 |
% |
|
$ |
579,917 |
|
|
$ |
2,208 |
|
|
|
1.51 |
% |
|
$ |
596,627 |
|
|
$ |
1,902 |
|
|
|
1.27 |
% |
Money market accounts |
|
2,159,841 |
|
|
|
18,730 |
|
|
|
3.44 |
% |
|
|
2,040,476 |
|
|
|
16,676 |
|
|
|
3.24 |
% |
|
|
1,472,050 |
|
|
|
5,458 |
|
|
|
1.47 |
% |
Savings |
|
560,372 |
|
|
|
208 |
|
|
|
0.15 |
% |
|
|
594,555 |
|
|
|
228 |
|
|
|
0.15 |
% |
|
|
647,536 |
|
|
|
243 |
|
|
|
0.15 |
% |
Time deposits |
|
1,861,279 |
|
|
|
21,979 |
|
|
|
4.68 |
% |
|
|
1,706,531 |
|
|
|
18,051 |
|
|
|
4.20 |
% |
|
|
788,856 |
|
|
|
3,007 |
|
|
|
1.51 |
% |
Total interest-bearing deposits |
|
5,152,198 |
|
|
|
43,252 |
|
|
|
3.33 |
% |
|
|
4,921,479 |
|
|
|
37,163 |
|
|
|
3.00 |
% |
|
|
3,505,069 |
|
|
|
10,610 |
|
|
|
1.20 |
% |
Other borrowings |
|
395,711 |
|
|
|
3,051 |
|
|
|
3.06 |
% |
|
|
463,561 |
|
|
|
3,981 |
|
|
|
3.41 |
% |
|
|
514,518 |
|
|
|
4,598 |
|
|
|
3.55 |
% |
Subordinated notes and debentures |
|
144,230 |
|
|
|
3,026 |
|
|
|
8.32 |
% |
|
|
144,171 |
|
|
|
2,994 |
|
|
|
8.24 |
% |
|
|
110,947 |
|
|
|
1,992 |
|
|
|
7.12 |
% |
Total borrowings |
|
539,941 |
|
|
|
6,077 |
|
|
|
4.47 |
% |
|
|
607,732 |
|
|
|
6,975 |
|
|
|
4.55 |
% |
|
|
625,465 |
|
|
|
6,590 |
|
|
|
4.18 |
% |
Total interest-bearing liabilities |
$ |
5,692,139 |
|
|
$ |
49,329 |
|
|
|
3.44 |
% |
|
$ |
5,529,211 |
|
|
$ |
44,138 |
|
|
|
3.17 |
% |
|
$ |
4,130,534 |
|
|
$ |
17,200 |
|
|
|
1.65 |
% |
Non-interest-bearing demand deposits |
|
1,950,644 |
|
|
|
|
|
|
|
|
|
1,987,996 |
|
|
|
|
|
|
|
|
|
2,235,464 |
|
|
|
|
|
|
|
Other liabilities |
|
209,656 |
|
|
|
|
|
|
|
|
|
192,860 |
|
|
|
|
|
|
|
|
|
151,763 |
|
|
|
|
|
|
|
Total stockholders’ equity |
|
935,197 |
|
|
|
|
|
|
|
|
|
924,278 |
|
|
|
|
|
|
|
|
|
748,292 |
|
|
|
|
|
|
|
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY |
$ |
8,787,636 |
|
|
|
|
|
|
|
|
$ |
8,634,345 |
|
|
|
|
|
|
|
|
$ |
7,266,053 |
|
|
|
|
|
|
|
Net interest spread(3) |
|
|
|
|
|
|
|
2.99 |
% |
|
|
|
|
|
|
|
|
3.43 |
% |
|
|
|
|
|
|
|
|
3.74 |
% |
Net interest income, fully taxable equivalent |
|
|
|
$ |
86,525 |
|
|
|
|
|
|
|
|
$ |
92,700 |
|
|
|
|
|
|
|
|
$ |
76,818 |
|
|
|
|
Net interest margin, fully taxable equivalent(2)(4) |
|
|
|
|
|
|
|
4.09 |
% |
|
|
|
|
|
|
|
|
4.47 |
% |
|
|
|
|
|
|
|
|
4.40 |
% |
Less: Tax-equivalent adjustment |
|
|
|
|
240 |
|
|
|
0.01 |
% |
|
|
|
|
|
248 |
|
|
|
0.01 |
% |
|
|
|
|
|
214 |
|
|
|
0.01 |
% |
Net interest income |
|
|
|
$ |
86,285 |
|
|
|
|
|
|
|
|
$ |
92,452 |
|
|
|
|
|
|
|
|
$ |
76,604 |
|
|
|
|
Net interest margin(4) |
|
|
|
|
|
|
|
4.08 |
% |
|
|
|
|
|
|
|
|
4.46 |
% |
|
|
|
|
|
|
|
|
4.39 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net loan accretion impact on margin |
|
|
|
$ |
5,110 |
|
|
|
0.24 |
% |
|
|
|
|
$ |
10,276 |
|
|
|
0.50 |
% |
|
|
|
|
$ |
369 |
|
|
|
0.02 |
% |
(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.
Page 10 of 15
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, 2023 |
|
|
December 31, 2022 |
|
(dollars in thousands) |
|
Average Balance(5) |
|
|
Interest Inc / Exp |
|
|
Average Yield / Rate |
|
|
Average Balance(5) |
|
|
Interest Inc / Exp |
|
|
Average Yield / Rate |
|
ASSETS |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash and cash equivalents |
|
$ |
157,754 |
|
|
$ |
5,029 |
|
|
|
3.19 |
% |
|
$ |
76,978 |
|
|
$ |
547 |
|
|
|
0.71 |
% |
Loans and leases(1) |
|
|
6,038,797 |
|
|
|
440,984 |
|
|
|
7.30 |
% |
|
|
5,073,288 |
|
|
|
273,412 |
|
|
|
5.39 |
% |
Taxable securities |
|
|
1,322,379 |
|
|
|
30,068 |
|
|
|
2.27 |
% |
|
|
1,316,147 |
|
|
|
24,156 |
|
|
|
1.84 |
% |
Tax-exempt securities(2) |
|
|
158,918 |
|
|
|
4,300 |
|
|
|
2.71 |
% |
|
|
164,051 |
|
|
|
4,359 |
|
|
|
2.66 |
% |
Total interest-earning assets |
|
$ |
7,677,848 |
|
|
$ |
480,381 |
|
|
|
6.26 |
% |
|
$ |
6,630,464 |
|
|
$ |
302,474 |
|
|
|
4.56 |
% |
Allowance for credit losses - loans and leases |
|
|
(98,067 |
) |
|
|
|
|
|
|
|
|
(74,233 |
) |
|
|
|
|
|
|
All other assets |
|
|
468,550 |
|
|
|
|
|
|
|
|
|
462,548 |
|
|
|
|
|
|
|
TOTAL ASSETS |
|
$ |
8,048,331 |
|
|
|
|
|
|
|
|
$ |
7,018,779 |
|
|
|
|
|
|
|
LIABILITIES AND STOCKHOLDERS’ EQUITY |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Deposits |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest checking |
|
$ |
574,335 |
|
|
$ |
9,212 |
|
|
|
1.60 |
% |
|
$ |
593,903 |
|
|
$ |
3,572 |
|
|
|
0.60 |
% |
Money market accounts |
|
|
1,802,675 |
|
|
|
53,933 |
|
|
|
2.99 |
% |
|
|
1,357,371 |
|
|
|
10,484 |
|
|
|
0.77 |
% |
Savings |
|
|
585,820 |
|
|
|
883 |
|
|
|
0.15 |
% |
|
|
658,968 |
|
|
|
649 |
|
|
|
0.10 |
% |
Time deposits |
|
|
1,468,836 |
|
|
|
57,408 |
|
|
|
3.91 |
% |
|
|
691,650 |
|
|
|
5,091 |
|
|
|
0.74 |
% |
Total interest-bearing deposits |
|
|
4,431,666 |
|
|
|
121,436 |
|
|
|
2.74 |
% |
|
|
3,301,892 |
|
|
|
19,796 |
|
|
|
0.60 |
% |
Other borrowings |
|
|
484,984 |
|
|
|
17,125 |
|
|
|
3.53 |
% |
|
|
478,374 |
|
|
|
9,308 |
|
|
|
1.95 |
% |
Federal funds purchased |
|
|
685 |
|
|
|
36 |
|
|
|
5.30 |
% |
|
|
630 |
|
|
|
14 |
|
|
|
2.32 |
% |
Subordinated notes and debentures |
|
|
127,825 |
|
|
|
10,260 |
|
|
|
8.03 |
% |
|
|
110,723 |
|
|
|
7,111 |
|
|
|
6.42 |
% |
Total borrowings |
|
|
613,494 |
|
|
|
27,421 |
|
|
|
4.47 |
% |
|
|
589,727 |
|
|
|
16,433 |
|
|
|
2.79 |
% |
Total interest-bearing liabilities |
|
$ |
5,045,160 |
|
|
$ |
148,857 |
|
|
|
2.95 |
% |
|
$ |
3,891,619 |
|
|
$ |
36,229 |
|
|
|
0.93 |
% |
Non-interest-bearing demand deposits |
|
|
1,965,663 |
|
|
|
|
|
|
|
|
|
2,236,615 |
|
|
|
|
|
|
|
Other liabilities |
|
|
174,416 |
|
|
|
|
|
|
|
|
|
114,320 |
|
|
|
|
|
|
|
Total stockholders’ equity |
|
|
863,092 |
|
|
|
|
|
|
|
|
|
776,225 |
|
|
|
|
|
|
|
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY |
|
$ |
8,048,331 |
|
|
|
|
|
|
|
|
$ |
7,018,779 |
|
|
|
|
|
|
|
Net interest spread(3) |
|
|
|
|
|
|
|
|
3.31 |
% |
|
|
|
|
|
|
|
|
3.63 |
% |
Net interest income, fully taxable equivalent |
|
|
|
|
$ |
331,524 |
|
|
|
|
|
|
|
|
$ |
266,245 |
|
|
|
|
Net interest margin, fully taxable equivalent(2)(4) |
|
|
|
|
|
|
|
|
4.32 |
% |
|
|
|
|
|
|
|
|
4.01 |
% |
Less: Tax-equivalent adjustment |
|
|
|
|
|
903 |
|
|
|
0.01 |
% |
|
|
|
|
|
915 |
|
|
|
0.01 |
% |
Net interest income |
|
|
|
|
$ |
330,621 |
|
|
|
|
|
|
|
|
$ |
265,330 |
|
|
|
|
Net interest margin(4) |
|
|
|
|
|
|
|
|
4.31 |
% |
|
|
|
|
|
|
|
|
4.00 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net loan accretion impact on margin |
|
|
|
|
$ |
16,726 |
|
|
|
0.22 |
% |
|
|
|
|
$ |
4,555 |
|
|
|
0.07 |
% |
(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.
Page 11 of 15
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:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
December 31, 2023 |
|
|
September 30, 2023 |
|
|
December 31, 2022 |
|
(dollars in thousands) |
|
Amount |
|
|
% of Total |
|
|
Amount |
|
|
% of Total |
|
|
Amount |
|
|
% of Total |
|
Originated loans and leases: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Commercial real estate |
|
$ |
1,907,029 |
|
|
|
28.5 |
% |
|
$ |
1,837,531 |
|
|
|
27.8 |
% |
|
$ |
1,712,152 |
|
|
|
31.6 |
% |
Residential real estate |
|
|
465,133 |
|
|
|
7.0 |
% |
|
|
454,456 |
|
|
|
6.9 |
% |
|
|
426,226 |
|
|
|
7.9 |
% |
Construction, land development, and other land |
|
|
415,162 |
|
|
|
6.2 |
% |
|
|
406,334 |
|
|
|
6.1 |
% |
|
|
438,617 |
|
|
|
8.1 |
% |
Commercial and industrial |
|
|
2,311,563 |
|
|
|
34.6 |
% |
|
|
2,286,058 |
|
|
|
34.6 |
% |
|
|
2,030,616 |
|
|
|
37.5 |
% |
Installment and other |
|
|
2,919 |
|
|
|
0.0 |
% |
|
|
2,968 |
|
|
|
0.0 |
% |
|
|
1,410 |
|
|
|
0.0 |
% |
Leasing financing receivables |
|
|
665,239 |
|
|
|
10.0 |
% |
|
|
641,032 |
|
|
|
9.7 |
% |
|
|
521,689 |
|
|
|
9.6 |
% |
Total originated loans and leases |
|
$ |
5,767,045 |
|
|
|
86.3 |
% |
|
$ |
5,628,379 |
|
|
|
85.1 |
% |
|
$ |
5,130,710 |
|
|
|
94.7 |
% |
Purchased credit deteriorated loans: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Commercial real estate |
|
$ |
137,807 |
|
|
|
2.1 |
% |
|
$ |
154,573 |
|
|
|
2.3 |
% |
|
$ |
45,143 |
|
|
|
0.8 |
% |
Residential real estate |
|
|
42,510 |
|
|
|
0.6 |
% |
|
|
47,485 |
|
|
|
0.7 |
% |
|
|
32,228 |
|
|
|
0.6 |
% |
Construction, land development, and other land |
|
|
25,331 |
|
|
|
0.4 |
% |
|
|
29,587 |
|
|
|
0.5 |
% |
|
|
372 |
|
|
|
0.0 |
% |
Commercial and industrial |
|
|
19,460 |
|
|
|
0.3 |
% |
|
|
21,014 |
|
|
|
0.3 |
% |
|
|
2,192 |
|
|
|
0.0 |
% |
Installment and other |
|
|
125 |
|
|
|
0.0 |
% |
|
|
125 |
|
|
|
0.0 |
% |
|
|
140 |
|
|
|
0.0 |
% |
Total purchased credit deteriorated loans |
|
$ |
225,233 |
|
|
|
3.4 |
% |
|
$ |
252,784 |
|
|
|
3.8 |
% |
|
$ |
80,075 |
|
|
|
1.4 |
% |
Acquired non-credit-deteriorated loans and leases: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Commercial real estate |
|
$ |
275,476 |
|
|
|
4.1 |
% |
|
$ |
296,656 |
|
|
|
4.5 |
% |
|
$ |
152,193 |
|
|
|
2.8 |
% |
Residential real estate |
|
|
211,887 |
|
|
|
3.2 |
% |
|
|
220,091 |
|
|
|
3.4 |
% |
|
|
31,508 |
|
|
|
0.6 |
% |
Construction, land development, and other land |
|
|
86,344 |
|
|
|
1.3 |
% |
|
|
87,087 |
|
|
|
1.3 |
% |
|
|
— |
|
|
|
0.0 |
% |
Commercial and industrial |
|
|
117,538 |
|
|
|
1.7 |
% |
|
|
127,253 |
|
|
|
1.9 |
% |
|
|
24,266 |
|
|
|
0.5 |
% |
Installment and other |
|
|
156 |
|
|
|
0.0 |
% |
|
|
153 |
|
|
|
0.0 |
% |
|
|
209 |
|
|
|
0.0 |
% |
Leasing financing receivables |
|
|
627 |
|
|
|
0.0 |
% |
|
|
900 |
|
|
|
0.0 |
% |
|
|
2,297 |
|
|
|
0.0 |
% |
Total acquired non-credit-deteriorated loans and leases |
|
$ |
692,028 |
|
|
|
10.3 |
% |
|
$ |
732,140 |
|
|
|
11.1 |
% |
|
$ |
210,473 |
|
|
|
3.9 |
% |
Total loans and leases |
|
$ |
6,684,306 |
|
|
|
100.0 |
% |
|
$ |
6,613,303 |
|
|
|
100.0 |
% |
|
$ |
5,421,258 |
|
|
|
100.0 |
% |
Allowance for credit losses - loans and leases |
|
|
(101,686 |
) |
|
|
|
|
|
(105,696 |
) |
|
|
|
|
|
(81,924 |
) |
|
|
|
Total loans and leases, net of allowance for credit losses - loans and leases |
|
$ |
6,582,620 |
|
|
|
|
|
$ |
6,507,607 |
|
|
|
|
|
$ |
5,339,334 |
|
|
|
|
The following table presents the balance and activity within the allowance for credit losses - loans and lease for the periods indicated:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended |
|
|
Year Ended |
|
|
|
December 31, |
|
|
September 30, |
|
|
December 31, |
|
|
December 31, |
|
|
December 31, |
|
(dollars in thousands) |
|
2023 |
|
|
2023 |
|
|
2022 |
|
|
2023 |
|
|
2022 |
|
ACL - loans and leases, beginning of period |
|
$ |
105,696 |
|
|
$ |
92,665 |
|
|
$ |
79,704 |
|
|
$ |
81,924 |
|
|
$ |
55,012 |
|
Adjustment for acquired PCD loans |
|
|
— |
|
|
|
10,596 |
|
|
|
— |
|
|
|
10,596 |
|
|
|
— |
|
Adjustment for CECL adoption |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
12,168 |
|
Provision for credit losses - loans and leases |
|
|
8,176 |
|
|
|
7,865 |
|
|
|
5,399 |
|
|
|
32,220 |
|
|
|
22,674 |
|
Net charge-offs - loans and leases |
|
|
(12,186 |
) |
|
|
(5,430 |
) |
|
|
(3,179 |
) |
|
|
(23,054 |
) |
|
|
(7,930 |
) |
ACL - loans and leases, end of period |
|
$ |
101,686 |
|
|
$ |
105,696 |
|
|
$ |
81,924 |
|
|
$ |
101,686 |
|
|
$ |
81,924 |
|
Net charge-offs - loans and leases to average total loans and leases held for investment, net before ACL |
|
|
0.73 |
% |
|
|
0.33 |
% |
|
|
0.24 |
% |
|
|
0.38 |
% |
|
|
0.16 |
% |
Provision for credit losses - loans and leases to net charge-offs - loans and leases during the period |
|
|
0.67 |
x |
|
|
1.45 |
x |
|
|
1.70 |
x |
|
|
1.40 |
x |
|
|
2.86 |
x |
Byline Bancorp, Inc.
Page 12 of 15
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:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
December 31, 2023 |
|
|
|
|
|
|
|
|
|
|
|
|
Change from |
|
(dollars in thousands) |
|
December 31, 2023 |
|
|
September 30, 2023 |
|
|
December 31, 2022 |
|
|
September 30, 2023 |
|
|
December 31, 2022 |
|
Non-performing assets: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-accrual loans and leases |
|
$ |
64,107 |
|
|
$ |
52,070 |
|
|
$ |
36,027 |
|
|
|
23.1 |
% |
|
|
77.9 |
% |
Past due loans and leases 90 days or more and still accruing interest |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
—% |
|
|
—% |
|
Total non-performing loans and leases |
|
$ |
64,107 |
|
|
$ |
52,070 |
|
|
$ |
36,027 |
|
|
|
23.1 |
% |
|
|
77.9 |
% |
Other real estate owned |
|
|
1,200 |
|
|
|
1,671 |
|
|
|
4,717 |
|
|
|
(28.2 |
)% |
|
|
(74.6 |
)% |
Total non-performing assets |
|
$ |
65,307 |
|
|
$ |
53,741 |
|
|
$ |
40,744 |
|
|
|
21.5 |
% |
|
|
60.3 |
% |
Total non-performing loans and leases as a percentage of total loans and leases |
|
|
0.96 |
% |
|
|
0.79 |
% |
|
|
0.66 |
% |
|
|
|
|
|
|
Total non-performing assets as a percentage of total assets |
|
|
0.74 |
% |
|
|
0.60 |
% |
|
|
0.55 |
% |
|
|
|
|
|
|
Allowance for credit losses - loans and lease as a percentage of non-performing loans and leases |
|
|
158.62 |
% |
|
|
202.99 |
% |
|
|
227.40 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-performing assets guaranteed by U.S. government: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-accrual loans guaranteed |
|
$ |
4,154 |
|
|
$ |
3,588 |
|
|
$ |
2,225 |
|
|
|
15.8 |
% |
|
|
86.7 |
% |
Past due loans 90 days or more and still accruing interest guaranteed |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
—% |
|
|
—% |
|
Total non-performing loans guaranteed |
|
$ |
4,154 |
|
|
$ |
3,588 |
|
|
$ |
2,225 |
|
|
|
15.8 |
% |
|
|
86.7 |
% |
Total non-performing loans and leases not guaranteed as a percentage of total loans and leases |
|
|
0.90 |
% |
|
|
0.73 |
% |
|
|
0.62 |
% |
|
|
|
|
|
|
Total non-performing assets not guaranteed as a percentage of total assets |
|
|
0.69 |
% |
|
|
0.56 |
% |
|
|
0.52 |
% |
|
|
|
|
|
|
The following table presents the composition of deposits at the dates indicated:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
December 31, 2023 |
|
|
|
|
|
|
|
|
|
|
|
Change from |
|
(dollars in thousands) |
December 31, 2023 |
|
|
September 30, 2023 |
|
|
December 31, 2022 |
|
|
September 30, 2023 |
|
|
December 31, 2022 |
|
Non-interest-bearing demand deposits |
$ |
1,905,876 |
|
|
$ |
1,959,855 |
|
|
$ |
2,138,645 |
|
|
|
(2.8 |
)% |
|
|
(10.9 |
)% |
Interest-bearing checking accounts |
|
577,609 |
|
|
|
592,771 |
|
|
|
592,098 |
|
|
|
(2.6 |
)% |
|
|
(2.4 |
)% |
Money market demand accounts |
|
2,266,030 |
|
|
|
2,062,252 |
|
|
|
1,415,653 |
|
|
|
9.9 |
% |
|
|
60.1 |
% |
Other savings |
|
542,532 |
|
|
|
581,073 |
|
|
|
625,798 |
|
|
|
(6.6 |
)% |
|
|
(13.3 |
)% |
Time deposits (below $250,000) |
|
1,520,082 |
|
|
|
1,446,485 |
|
|
|
762,250 |
|
|
|
5.0 |
% |
|
|
99.4 |
% |
Time deposits ($250,000 and above) |
|
364,870 |
|
|
|
311,254 |
|
|
|
160,677 |
|
|
|
17.4 |
% |
|
|
127.1 |
% |
Total deposits |
$ |
7,176,999 |
|
|
$ |
6,953,690 |
|
|
$ |
5,695,121 |
|
|
|
3.2 |
% |
|
|
26.0 |
% |
Byline Bancorp, Inc.
Page 13 of 15
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 Year Ended |
|
|
|
December 31, |
|
|
September 30, |
|
|
December 31, |
|
|
December 31, |
|
|
December 31, |
|
(dollars in thousands, except per share data) |
|
2023 |
|
|
2023 |
|
|
2022 |
|
|
2023 |
|
|
2022 |
|
Net income and earnings per share excluding significant items: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reported Net Income |
|
$ |
29,604 |
|
|
$ |
28,222 |
|
|
$ |
24,367 |
|
|
$ |
107,878 |
|
|
$ |
87,954 |
|
Significant items: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Impairment charges on assets held for sale and ROU assets |
|
|
1,981 |
|
|
|
394 |
|
|
|
372 |
|
|
|
2,395 |
|
|
|
372 |
|
Merger-related expenses |
|
|
1,035 |
|
|
|
6,307 |
|
|
|
538 |
|
|
|
9,222 |
|
|
|
538 |
|
Tax benefit |
|
|
(793 |
) |
|
|
(1,617 |
) |
|
|
(118 |
) |
|
|
(2,696 |
) |
|
|
(118 |
) |
Adjusted Net Income |
|
$ |
31,827 |
|
|
$ |
33,306 |
|
|
$ |
25,159 |
|
|
$ |
116,799 |
|
|
$ |
88,746 |
|
Reported Diluted Earnings per Share |
|
$ |
0.68 |
|
|
$ |
0.65 |
|
|
$ |
0.65 |
|
|
$ |
2.67 |
|
|
$ |
2.34 |
|
Significant items: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Impairment charges on assets held for sale and ROU assets |
|
|
0.05 |
|
|
|
0.01 |
|
|
|
0.01 |
|
|
|
0.06 |
|
|
|
0.01 |
|
Merger-related expenses |
|
|
0.02 |
|
|
|
0.15 |
|
|
|
0.01 |
|
|
|
0.23 |
|
|
|
0.01 |
|
Tax benefit |
|
|
(0.02 |
) |
|
|
(0.04 |
) |
|
|
— |
|
|
|
(0.07 |
) |
|
|
— |
|
Adjusted Diluted Earnings per Share |
|
$ |
0.73 |
|
|
$ |
0.77 |
|
|
$ |
0.67 |
|
|
$ |
2.89 |
|
|
$ |
2.36 |
|
Byline Bancorp, Inc.
Page 14 of 15
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 Year Ended |
|
(dollars in thousands, except per share data, |
|
December 31, |
|
|
September 30, |
|
|
December 31, |
|
|
December 31, |
|
|
December 31, |
|
ratios annualized, where applicable) |
|
2023 |
|
|
2023 |
|
|
2022 |
|
|
2023 |
|
|
2022 |
|
Adjusted non-interest expense: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-interest expense |
|
$ |
53,584 |
|
|
$ |
57,891 |
|
|
$ |
50,500 |
|
|
$ |
209,603 |
|
|
$ |
184,082 |
|
Less: Significant items |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Impairment charges on assets held for sale and ROU assets |
|
|
1,981 |
|
|
|
394 |
|
|
|
372 |
|
|
|
2,395 |
|
|
|
372 |
|
Merger-related expenses |
|
|
1,035 |
|
|
|
6,307 |
|
|
|
538 |
|
|
|
9,222 |
|
|
|
538 |
|
Adjusted non-interest expense |
|
$ |
50,568 |
|
|
$ |
51,190 |
|
|
$ |
49,590 |
|
|
$ |
197,986 |
|
|
$ |
183,172 |
|
Adjusted non-interest expense excluding amortization of intangible assets: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted non-interest expense |
|
$ |
50,568 |
|
|
$ |
51,190 |
|
|
$ |
49,590 |
|
|
$ |
197,986 |
|
|
$ |
183,172 |
|
Less: Amortization of intangible assets |
|
|
1,550 |
|
|
|
1,551 |
|
|
|
1,596 |
|
|
|
6,011 |
|
|
|
6,671 |
|
Adjusted non-interest expense excluding amortization of intangible assets |
|
$ |
49,018 |
|
|
$ |
49,639 |
|
|
$ |
47,994 |
|
|
$ |
191,975 |
|
|
$ |
176,501 |
|
Pre-tax pre-provision net income: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Pre-tax income |
|
$ |
39,969 |
|
|
$ |
38,134 |
|
|
$ |
31,733 |
|
|
$ |
145,680 |
|
|
$ |
114,683 |
|
Add: Provision for credit losses |
|
|
7,235 |
|
|
|
8,803 |
|
|
|
5,826 |
|
|
|
31,653 |
|
|
|
23,879 |
|
Pre-tax pre-provision net income |
|
$ |
47,204 |
|
|
$ |
46,937 |
|
|
$ |
37,559 |
|
|
$ |
177,333 |
|
|
$ |
138,562 |
|
Adjusted pre-tax pre-provision net income: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Pre-tax pre-provision net income |
|
$ |
47,204 |
|
|
$ |
46,937 |
|
|
$ |
37,559 |
|
|
$ |
177,333 |
|
|
$ |
138,562 |
|
Add: Impairment charges on assets held for sale and ROU assets |
|
|
1,981 |
|
|
|
394 |
|
|
|
372 |
|
|
|
2,395 |
|
|
|
372 |
|
Add: Merger-related expenses |
|
|
1,035 |
|
|
|
6,307 |
|
|
|
538 |
|
|
|
9,222 |
|
|
|
538 |
|
Adjusted pre-tax pre-provision net income |
|
$ |
50,220 |
|
|
$ |
53,638 |
|
|
$ |
38,469 |
|
|
$ |
188,950 |
|
|
$ |
139,472 |
|
Tax equivalent net interest income: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net interest income |
|
$ |
86,285 |
|
|
$ |
92,452 |
|
|
$ |
76,604 |
|
|
$ |
330,621 |
|
|
$ |
265,330 |
|
Add: Tax-equivalent adjustment |
|
|
240 |
|
|
|
248 |
|
|
|
214 |
|
|
|
903 |
|
|
|
915 |
|
Net interest income, fully taxable equivalent |
|
$ |
86,525 |
|
|
$ |
92,700 |
|
|
$ |
76,818 |
|
|
$ |
331,524 |
|
|
$ |
266,245 |
|
Total revenue: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net interest income |
|
$ |
86,285 |
|
|
$ |
92,452 |
|
|
$ |
76,604 |
|
|
$ |
330,621 |
|
|
$ |
265,330 |
|
Add: Non-interest income |
|
|
14,503 |
|
|
|
12,376 |
|
|
|
11,455 |
|
|
|
56,315 |
|
|
$ |
57,314 |
|
Total revenue |
|
$ |
100,788 |
|
|
$ |
104,828 |
|
|
$ |
88,059 |
|
|
$ |
386,936 |
|
|
$ |
322,644 |
|
Tangible common stockholders' equity: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total stockholders' equity |
|
$ |
990,151 |
|
|
$ |
919,945 |
|
|
$ |
765,816 |
|
|
$ |
990,151 |
|
|
$ |
765,816 |
|
Less: Goodwill and other intangibles |
|
|
203,478 |
|
|
|
205,028 |
|
|
|
158,887 |
|
|
|
203,478 |
|
|
|
158,887 |
|
Tangible common stockholders' equity |
|
$ |
786,673 |
|
|
$ |
714,917 |
|
|
$ |
606,929 |
|
|
$ |
786,673 |
|
|
$ |
606,929 |
|
Tangible assets: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total assets |
|
$ |
8,881,967 |
|
|
$ |
8,943,368 |
|
|
$ |
7,362,941 |
|
|
$ |
8,881,967 |
|
|
$ |
7,362,941 |
|
Less: Goodwill and other intangibles |
|
|
203,478 |
|
|
|
205,028 |
|
|
|
158,887 |
|
|
|
203,478 |
|
|
|
158,887 |
|
Tangible assets |
|
$ |
8,678,489 |
|
|
$ |
8,738,340 |
|
|
$ |
7,204,054 |
|
|
$ |
8,678,489 |
|
|
$ |
7,204,054 |
|
Average tangible common stockholders' equity: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average total stockholders' equity |
|
$ |
935,197 |
|
|
$ |
924,278 |
|
|
$ |
748,292 |
|
|
$ |
863,092 |
|
|
$ |
776,225 |
|
Less: Average preferred stock |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
2,459 |
|
Less: Average goodwill and other intangibles |
|
|
204,191 |
|
|
|
202,978 |
|
|
|
159,680 |
|
|
|
180,717 |
|
|
|
162,203 |
|
Average tangible common stockholders' equity |
|
$ |
731,006 |
|
|
$ |
721,300 |
|
|
$ |
588,612 |
|
|
$ |
682,375 |
|
|
$ |
611,563 |
|
Average tangible assets: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average total assets |
|
$ |
8,787,636 |
|
|
$ |
8,634,345 |
|
|
$ |
7,266,053 |
|
|
$ |
8,048,331 |
|
|
$ |
7,018,779 |
|
Less: Average goodwill and other intangibles |
|
|
204,191 |
|
|
|
202,978 |
|
|
|
159,680 |
|
|
|
180,717 |
|
|
|
162,203 |
|
Average tangible assets |
|
$ |
8,583,445 |
|
|
$ |
8,431,367 |
|
|
$ |
7,106,373 |
|
|
$ |
7,867,614 |
|
|
$ |
6,856,576 |
|
Tangible net income available to common stockholders: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income available to common stockholders |
|
$ |
29,604 |
|
|
$ |
28,222 |
|
|
$ |
24,367 |
|
|
$ |
107,878 |
|
|
$ |
87,758 |
|
Add: After-tax intangible asset amortization |
|
|
1,138 |
|
|
|
1,137 |
|
|
|
1,170 |
|
|
|
4,408 |
|
|
|
4,890 |
|
Tangible net income available to common stockholders |
|
$ |
30,742 |
|
|
$ |
29,359 |
|
|
$ |
25,537 |
|
|
$ |
112,286 |
|
|
$ |
92,648 |
|
Adjusted tangible net income available to common stockholders: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Tangible net income available to common stockholders |
|
$ |
30,742 |
|
|
$ |
29,359 |
|
|
$ |
25,537 |
|
|
$ |
112,286 |
|
|
$ |
92,648 |
|
Impairment charges on assets held for sale and ROU assets |
|
|
1,981 |
|
|
|
394 |
|
|
|
372 |
|
|
|
2,395 |
|
|
|
372 |
|
Merger-related expenses |
|
|
1,035 |
|
|
|
6,307 |
|
|
|
538 |
|
|
|
9,222 |
|
|
|
538 |
|
Tax benefit on significant items |
|
|
(793 |
) |
|
|
(1,617 |
) |
|
|
(118 |
) |
|
|
(2,696 |
) |
|
|
(118 |
) |
Adjusted tangible net income available to common stockholders |
|
$ |
32,965 |
|
|
$ |
34,443 |
|
|
$ |
26,329 |
|
|
$ |
121,207 |
|
|
$ |
93,440 |
|
Byline Bancorp, Inc.
Page 15 of 15
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 Year Ended |
|
(dollars in thousands, except share and per share |
|
December 31, |
|
|
September 30, |
|
|
December 31, |
|
|
December 31, |
|
|
December 31, |
|
data, ratios annualized, where applicable) |
|
2023 |
|
|
2023 |
|
|
2022 |
|
|
2023 |
|
|
2022 |
|
Pre-tax pre-provision return on average assets: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Pre-tax pre-provision net income |
|
$ |
47,204 |
|
|
$ |
46,937 |
|
|
$ |
37,559 |
|
|
$ |
177,333 |
|
|
$ |
138,562 |
|
Average total assets |
|
|
8,787,636 |
|
|
|
8,634,345 |
|
|
|
7,266,053 |
|
|
|
8,048,331 |
|
|
|
7,018,779 |
|
Pre-tax pre-provision return on average assets |
|
|
2.13 |
% |
|
|
2.16 |
% |
|
|
2.05 |
% |
|
|
2.20 |
% |
|
|
1.97 |
% |
Adjusted pre-tax pre-provision return on average assets: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted pre-tax pre-provision net income |
|
$ |
50,220 |
|
|
$ |
53,638 |
|
|
$ |
38,469 |
|
|
$ |
188,950 |
|
|
$ |
139,472 |
|
Average total assets |
|
|
8,787,636 |
|
|
|
8,634,345 |
|
|
|
7,266,053 |
|
|
|
8,048,331 |
|
|
|
7,018,779 |
|
Adjusted pre-tax pre-provision return on average assets |
|
|
2.27 |
% |
|
|
2.46 |
% |
|
|
2.10 |
% |
|
|
2.35 |
% |
|
|
1.99 |
% |
Net interest margin, fully taxable equivalent: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net interest income, fully taxable equivalent |
|
$ |
86,525 |
|
|
$ |
92,700 |
|
|
$ |
76,818 |
|
|
$ |
331,524 |
|
|
$ |
266,245 |
|
Total average interest-earning assets |
|
|
8,387,877 |
|
|
|
8,220,678 |
|
|
|
6,922,889 |
|
|
|
7,677,848 |
|
|
|
6,630,464 |
|
Net interest margin, fully taxable equivalent |
|
|
4.09 |
% |
|
|
4.47 |
% |
|
|
4.40 |
% |
|
|
4.32 |
% |
|
|
4.01 |
% |
Non-interest income to total revenues: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-interest income |
|
$ |
14,503 |
|
|
$ |
12,376 |
|
|
$ |
11,455 |
|
|
$ |
56,315 |
|
|
$ |
57,314 |
|
Total revenues |
|
|
100,788 |
|
|
|
104,828 |
|
|
|
88,059 |
|
|
|
386,936 |
|
|
|
322,644 |
|
Non-interest income to total revenues |
|
|
14.39 |
% |
|
|
11.81 |
% |
|
|
13.01 |
% |
|
|
14.55 |
% |
|
|
17.76 |
% |
Adjusted non-interest expense to average assets: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted non-interest expense |
|
$ |
50,568 |
|
|
$ |
51,190 |
|
|
$ |
49,590 |
|
|
$ |
197,986 |
|
|
$ |
183,172 |
|
Average total assets |
|
|
8,787,636 |
|
|
|
8,634,345 |
|
|
|
7,266,053 |
|
|
|
8,048,331 |
|
|
|
7,018,779 |
|
Adjusted non-interest expense to average assets |
|
|
2.28 |
% |
|
|
2.35 |
% |
|
|
2.71 |
% |
|
|
2.46 |
% |
|
|
2.61 |
% |
Adjusted efficiency ratio: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted non-interest expense excluding amortization of intangible assets |
|
$ |
49,018 |
|
|
$ |
49,639 |
|
|
$ |
47,994 |
|
|
$ |
191,975 |
|
|
$ |
176,501 |
|
Total revenues |
|
|
100,788 |
|
|
|
104,828 |
|
|
|
88,059 |
|
|
|
386,936 |
|
|
|
322,644 |
|
Adjusted efficiency ratio |
|
|
48.64 |
% |
|
|
47.35 |
% |
|
|
54.50 |
% |
|
|
49.61 |
% |
|
|
54.70 |
% |
Adjusted return on average assets: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted net income |
|
$ |
31,827 |
|
|
$ |
33,306 |
|
|
$ |
25,159 |
|
|
$ |
116,799 |
|
|
$ |
88,746 |
|
Average total assets |
|
|
8,787,636 |
|
|
|
8,634,345 |
|
|
|
7,266,053 |
|
|
|
8,048,331 |
|
|
|
7,018,779 |
|
Adjusted return on average assets |
|
|
1.44 |
% |
|
|
1.53 |
% |
|
|
1.37 |
% |
|
|
1.45 |
% |
|
|
1.26 |
% |
Adjusted return on average stockholders' equity: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted net income |
|
$ |
31,827 |
|
|
$ |
33,306 |
|
|
$ |
25,159 |
|
|
$ |
116,799 |
|
|
$ |
88,746 |
|
Average stockholders' equity |
|
|
935,197 |
|
|
|
924,278 |
|
|
|
748,292 |
|
|
|
863,092 |
|
|
|
776,225 |
|
Adjusted return on average stockholders' equity |
|
|
13.50 |
% |
|
|
14.30 |
% |
|
|
13.34 |
% |
|
|
13.53 |
% |
|
|
11.43 |
% |
Tangible common equity to tangible assets: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Tangible common equity |
|
$ |
786,673 |
|
|
$ |
714,917 |
|
|
$ |
606,929 |
|
|
$ |
786,673 |
|
|
$ |
606,929 |
|
Tangible assets |
|
|
8,678,489 |
|
|
|
8,738,340 |
|
|
|
7,204,054 |
|
|
|
8,678,489 |
|
|
|
7,204,054 |
|
Tangible common equity to tangible assets |
|
|
9.06 |
% |
|
|
8.18 |
% |
|
|
8.42 |
% |
|
|
9.06 |
% |
|
|
8.42 |
% |
Return on average tangible common stockholders' equity: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Tangible net income available to common stockholders |
|
$ |
30,742 |
|
|
$ |
29,359 |
|
|
$ |
25,537 |
|
|
$ |
112,286 |
|
|
$ |
92,648 |
|
Average tangible common stockholders' equity |
|
|
731,006 |
|
|
|
721,300 |
|
|
|
588,612 |
|
|
|
682,375 |
|
|
|
611,563 |
|
Return on average tangible common stockholders' equity |
|
|
16.68 |
% |
|
|
16.15 |
% |
|
|
17.21 |
% |
|
|
16.46 |
% |
|
|
15.15 |
% |
Adjusted return on average tangible common stockholders' equity: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted tangible net income available to common stockholders |
|
$ |
32,965 |
|
|
$ |
34,443 |
|
|
$ |
26,329 |
|
|
$ |
121,207 |
|
|
$ |
93,440 |
|
Average tangible common stockholders' equity |
|
|
731,006 |
|
|
|
721,300 |
|
|
|
588,612 |
|
|
|
682,375 |
|
|
|
611,563 |
|
Adjusted return on average tangible common stockholders' equity |
|
|
17.89 |
% |
|
|
18.95 |
% |
|
|
17.75 |
% |
|
|
17.76 |
% |
|
|
15.28 |
% |
Tangible book value per share: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Tangible common equity |
|
$ |
786,673 |
|
|
$ |
714,917 |
|
|
$ |
606,929 |
|
|
$ |
786,673 |
|
|
$ |
606,929 |
|
Common shares outstanding |
|
|
43,764,056 |
|
|
|
43,719,203 |
|
|
|
37,492,775 |
|
|
|
43,764,056 |
|
|
|
37,492,775 |
|
Tangible book value per share |
|
$ |
17.98 |
|
|
$ |
16.35 |
|
|
$ |
16.19 |
|
|
$ |
17.98 |
|
|
$ |
16.19 |
|
4Q23 Earnings Presentation Exhibit 99.2
2 Forward-Looking Statements 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 judgement 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, 2022. 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. Due to rounding, numbers presented throughout this document may not add up precisely to the totals provided and percentages may not precisely reflect the absolute figures.
Performance Highlights Delivered Solid Full Year 2023 Results Reported net income of $107.9 million, or diluted EPS of $2.67, on revenue of $386.9 million Solid adjusted PTPP ROA(1) of 2.35%, ROA(1) of 1.45%, ROTCE(1) of 17.76% Net interest margin expanded 31 basis points to 4.31% Delivered full year loan growth of 23%, funded by high quality deposit base which grew 26% YoY Maintained strong capital ratios with CET1 at 10.35% and TCE/TA(1) at 9.06% Successfully completed $1.2 billion merger and integration of Inland Bancorp, Inc. Revenue Diluted EPS Efficiency ratio Capital Deposits Loans and Leases 20% Y/Y $386.9 million 14% Y/Y $2.67 Improved 237 bps Y/Y 52.62% $990.2 million $7.2 billion $6.7 billion 3 29% Y/Y 23% Y/Y 26% Y/Y Represents a non-GAAP financial measure. See “Non-GAAP Reconciliation” in the appendix.
2.13% 2.27% Reported(1)(2) Adjusted(1)(2) 16.68% 17.88% Reported(1)(2) Adjusted(1)(2) ROTCE $0.68 $0.73 Reported Adjusted(1) 1.34% 1.44% Reported(2) Adjusted(1)(2) ROAA $29.6 million $31.8 million Reported Adjusted(1) 51.63% 48.64% Reported Adjusted(1) Efficiency Ratio Fourth Quarter 2023 Highlights 4 Represents a non-GAAP financial measure. See “Non-GAAP Reconciliation” in the appendix. Annualized. Strong Financial Performance Net Income Diluted EPS PTPP ROAA 10.35% Common Equity Tier 1 +10% Increase in Tangible Book Value / Share QoQ +12.7% Increase in Deposits(2) +4.9% Increase in Loans and Leases(2) 93.4% Loan/deposit ratio GAAP EPS of $0.68; adjusted EPS(1) of $0.73 4Q23 earnings impacted by $1.0 million of merger-related expenses Record Pre-Tax Pre-Provision income (1) of $47.2 million; Pre-Tax Pre-Provision ROAA(1) of 2.13% Revenue of $100.8 million, up 20% YoY Net interest income of $86.3 million, up 25% YoY Net interest margin (FTE)(1) of 4.09% Loan and lease yields stood at 7.42% Disciplined expense management with adjusted operating expenses(1): $50.6 million Adj. efficiency ratio(1): 48.64% Adj. NIE/AA(1): 2.28%, down 15 bps YoY
Loan and Lease Trends ($ in millions) Total Loans & Leases and Average Yield Portfolio Composition Total loans and leases were $6.7 billion at 4Q23, an increase of $81.7 million, or 4.9% annualized from 3Q23 Originated $240.6 million in new loans, net of loan sales in 4Q23 Production driven by commercial and lease originations of $86.6 million and $79.4 million, respectively Payoff activity increased by $67.6 million from 3Q23 to $252.3 million Cumulative Loan Beta(1): 42% Highlights Utilization Rates 55% LTM Average Originations and Payoffs Cumulative Beta excluding loan accretion is calculated as the change in yield on loans and leases from 4Q21 to 4Q23 divided by the change in average Fed Funds from 4Q21 to 4Q23. 5
(1) $ Balance % of Portfolio Unguaranteed $382.5 5.7% Guaranteed 70.8 1.1% Total SBA 7(a) Loans $453.3 6.8% Unguaranteed $40.3 0.6% Guaranteed 21.2 0.3% Total USDA Loans $61.5 0.9% Unguaranteed Loan Portfolio by Industry A leading SBA 7(a) lender for Government Fiscal Year 2023 #5 SBA 7(a) lender in the United States #1 SBA 7(a) and 504 lender in Illinois Closed $135.3 million in loan commitments in 4Q23, up 19% LQ and 12% YoY SBA 7(a) portfolio $453.3 million, down $8.4 million from 3Q23 ACL/Unguaranteed loan balance ~7.8% $1.7 billion in serviced government guaranteed loans for investors in 4Q23 Government-Guaranteed Lending ($ in millions) On Balance Sheet SBA 7(a) & USDA Loans Total SBC Closed Loan Commitments Highlights Represents sectors with less than 5% of the total portfolio. 6
Cost of Interest-Bearing Deposits Total deposits were $7.2 billion, up 12.8% annualized from 3Q23 Net deposit growth includes the redemption of $69.1 million in brokered CDs Commercial deposits accounted for 46.5% of total deposits and represent 77.5% of all non-interest-bearing deposits Cost of deposits increased 29 bps in 4Q23, due to mix changes Cumulative total deposit beta remains low at ~45% since the beginning of the current tightening cycle Deposit Trends ($ in millions) Deposit Composition Highlights Average Non-Interest-Bearing Deposits Deposit Beta(1) Interest-Bearing Deposits: 61% Total Deposits: 45% 7 Beta calculation is based on change in deposit cost divided by change in Fed Funds from 4Q21 to 4Q23.
Net interest income was $86.3 million, down 6.7% from 3Q23 Net interest margin decreased 38 basis points from 3Q23 to 4.08% Full year NIM expanded 31 bps to 4.31% Loan and lease yield stood at 7.42% Interest Rate Sensitivity Over a One-Year Time Horizon Static balance sheet: net interest income sensitivity reduced by 1.8% YoY Rates -100 bps: ~$12 million or ~3.3% decline in NII or ~$3.0 million per 25 bps Ramp -100 bps: ~$9 million or ~2.5% decline in NII or ~$2.25 million per 25 bps NIM Bridge Net Interest Income and Net Interest Margin Trends ($ in millions) Net Interest Income Highlights NIM, Yields, and Costs 8 Repricing Mix 0.01%
Government Guaranteed Loan Sales $89.1 million of guaranteed loans sold in 4Q23 Loans held for sale increased to $18.0 million in 4Q23 Non-interest income was $14.5 million, up 17.2% from 3Q23 Non-interest income levels excluding FV mark on loan servicing asset remained stable FV mark on net servicing asset improved by $2.4 million LQ $1.2 million gain on the change in fair value of equity securities Volume Sold and Average Net Premiums Non-Interest Income Trends ($ in millions) Total Non-Interest Income Highlights Net Gains on Sales of Loans 9 (1) Other includes net servicing losses for 4Q22 and 3Q23.
(1) Non-interest expenses decreased to $53.6 million from $57.9 million in 3Q23, primarily driven by merger-related expenses taken in Q3 $3.0 million decrease in salaries and employee benefits $1.5 million decrease in both data processing and legal, audit and other professional Excluding significant items of $3.0 million, adjusted non-interest expense(1) stood at $50.6 million; adjusted efficiency ratio(1): 48.64% Disciplined expense management with adjusted NIE/AA(1): 2.28%, down 7 bps LQ & 43 bps YoY Efficiency Ratio Non-Interest Expense Trends ($ in millions) Non-Interest Expense Highlights Non-Interest Expense Bridge 10 Represents a non-GAAP financial measure. See “Non-GAAP Reconciliation” in the appendix. ($5.3) ($0.9) ($0.8) ($0.2) $1.0 $0.3 $1.6 $57.9 $53.6
Note: Delinquencies represent accruing loans and leases past due 30 days or more. Delinquencies to Total Loans and Leases represent delinquencies divided by period end loans and leases. Delinquencies Asset Quality Trends ($ in millions) Net Charge-offs NPLs / Total Loans & Leases 11 Allowance for Credit Losses (ACL)
Median: 63% Percent of Insured Deposits(2) Liquidity Position Strong Liquidity and Securities Portfolio Cash and cash equivalents of $226.1 million $1.4 billion investment portfolio (~99.9% AFS) $2.3 billion of available borrowing capacity Liquidity coverage of uninsured deposits ~126% as of quarter end Loans/Deposits ratio of 93.4%, down 182 basis points from 3Q23 Uninsured Deposits stood at 26.7% and trends well below all peer bank averages % of Uninsured Deposits Industry Comparisons(1) >$500B $250B - $500B $100B - $250B $50B - $100B $10B - $50B $1B - $10B Median 41.9% 32.5% 37.0% 38.5% 37.4% 30.8% Byline Bank 26.7% 26.7% 26.7% 26.7% 26.7% 26.7% 12 Source: SNL Financial, and company filings. Financial data as of quarter ended September 30, 2023 or most recent available. Source: Company’s 3Q23 Form 10-Q | Calculation: (total deposits uninsured deposits) / total consolidated deposits | Byline 2023 Proxy Peer Group. Represents a non-GAAP financial measure. See “Non-GAAP Reconciliation” in the appendix. AFS Portfolio by Type HTM portfolio of $1.2 million ($8,000 in unrealized losses) Securities portfolio duration: 4.8 years; net of hedges: ~4.3 years Securities portfolio annual cash flow: ~$240 million Total securities yield of 2.55%, up 7 basis points from 3Q23 AOCI / TCE(3): ~12.7% Highlights
(1) Return on Average Tangible Common Equity Strong Capital Position Capital Ratios 13 Represents a non-GAAP financial measure. See “Non-GAAP Reconciliation” in the appendix. Strong Capital Base Common Equity Tier 1 Capital Priorities: TCE operating target range(1) is between 8% and 9%: currently at 9.06% $990 million total stockholders’ equity $450 million of balance sheet hedges to protect market value risk 1. Fund Organic Growth 2. Dividend 3. M&A 4. Buyback (1)
Our Strategy Remains Consistent 14 Maintain Balance Sheet Strength Continue to Invest in the Business Capitalize on Market Opportunities Deliver Strong Financial Results Grow our Commercial Client Franchise 1 2 3 4 5 Leverage our Capabilities 6 Differentiated approach to grow loans and deposits organically in targeted market segments Maintain a strong balance sheet, ample capital flexibility and strong asset quality Continue to invest in digital capabilities to improve the customer experience and gain operational efficiencies Attract additional high-quality talent to the organization and pursue opportunistic M&A opportunities Generate consistently strong financial results for our stockholders Leverage all our capabilities to deepen share of wallet and acquire new customers
4Q23 Earnings Presentation Appendix
Granular Deposit Base 16 Consumer Deposits, $3.1 billion Commercial Deposits, $2.8 billion ~73% of Total Deposits are FDIC Insured
with limited concentration and granular customer base providing a stable source of funding Consumer Deposits(1) $3.9 billion at 12/31/23 Granular Deposit Base ~$28,000 Average Account Balance Customer Base ~123,000 Consumer Accounts Total Franchise 48 Branches Commercial Deposits $3.3 billion at 12/31/23 Granular Deposit Base ~$121,000 Average Account Balance Customer Base ~27,000 Commercial Accounts Consumer Deposits, $3.9 billion Commercial Deposits, $3.3 billion Uninsured 8% d Total Deposits $7.2 Billion as of 12/31/23 Core banking footprint in key urban MSAs in Wisconsin and a broad footprint in Chicago, IL A strength of our franchise is our well diversified deposit base
Excludes brokered deposits.
CRE Portfolio: NOO Office Represents 3.3% of Total Loans 17 Non-Owner Occupied Commercial Real Estate Portfolio ($ in millions) 12/31/23 Industrial / Warehouse $582.6 8.7% Multi-family 570.2 8.5% Retail 256.5 3.8% Office 223.9 3.3% Mixed Use 56.9 0.9% Senior Housing / Healthcare 38.4 0.6% Hotel / Motel 26.7 0.4% Other 219.5 3.3% Total $1,974.7 29.5% % of Total Loans Note: Non-Owner Occupied CRE Portfolio includes construction, land, multi-family and non-owner occupied (NOO). CRE portfolio includes owner occupied, non-owner occupied, non-farm, non-residential, construction, and multi-family loans. d Total Loans & Leases $6.7 Billion as of 12/31/23 Office CRE Loans by Size Size Weighted Average Risk Rating Number of Loans Balance Average Balance > $10 million 4.17 5 $74.2 $14.8 $5-$10 million 5.19 10 $76.5 $7.6 $2-$5 million 4.96 15 $52.0 $3.5 < $2 million 4.01 32 $21.2 $0.7 Total 4.69 62 $223.9 $6.7 ($ in millions)
12/31/23 9/30/23 Avg. Commitment $3.6 million $3.4 million ACL % 3.0% 2.8% NCO %(1) 2.57% 0.95% 30+ DLQ % 5.9% 9.8% NPL % 5.9% 4.5% Criticized % 22% 17% Office CRE Portfolio: Diversified Tenants and Markets NCOs / Average loans represents net charge-offs to average loans for the last twelve-month period. Tenant Classification ($ in millions) 12/31/23 Illinois $138.4 North Carolina 26.0 Wisconsin 14.5 New Jersey 11.0 Florida 10.9 Ohio 9.6 Iowa 5.2 Minnesota 3.2 New Mexico 2.2 West Virginia 1.1 Michigan 1.0 Tennessee 0.8 Total Office $223.9 CRE Office: Geographic Mix by State Office Portfolio Metrics Office Portfolio Market Type 18
Projected Acquisition Accounting Accretion Projections are updated quarterly, assumes no prepayments and are subject to change. 19 Projected Accretion(1) ($ in millions)
Financial Summary 20 Represents a non-GAAP financial measure. See “Non-GAAP Reconciliation” in the appendix. As of or For the Three Months Ended As of or For the Year Ended (dollars in thousands, except per share data) December 31, September 30, December 31, December 31, December 31, 2023 2023 2022 2023 2022 Income Statement Net interest income $ 86,285 $ 92,452 $ 76,604 $ 330,621 $ 265,330 Provision for credit losses 7,235 8,803 5,826 31,653 23,879 Non-interest income 14,503 12,376 11,455 56,315 57,314 Non-interest expense 53,584 57,891 50,500 209,603 184,082 Income before provision for income taxes 39,969 38,134 31,733 145,680 114,683 Provision for income taxes 10,365 9,912 7,366 37,802 26,729 Net income 29,604 28,222 24,367 107,878 87,954 Diluted earnings per common share(1) $ 0.68 $ 0.65 $ 0.65 $ 2.67 $ 2.34 Balance Sheet Total loans and leases HFI $ 6,684,306 $ 6,613,303 $ 5,421,258 $ 6,684,306 $ 5,421,258 Total deposits 7,176,999 6,953,690 5,695,121 7,176,999 5,695,121 Tangible common equity(1) 786,673 714,917 606,929 786,673 606,929 Balance Sheet Metrics Loans and leases / total deposits 93.39% 95.21% 96.03% 93.39% 95.19% Tangible common equity / tangible assets(1) 9.06% 8.18% 8.42% 9.06% 8.42% Key Performance Ratios Net interest margin 4.08% 4.46% 4.39% 4.31% 4.01% Efficiency ratio 51.63% 53.75% 55.53% 52.62% 54.99% Adjusted efficiency ratio(1) 48.64% 47.35% 54.50% 49.61% 54.70% Non-interest income to total revenues 14.39% 11.81% 13.01% 14.55% 17.76% Non-interest expense to average assets 2.42% 2.66% 2.76% 2.60% 2.62% Return on average assets 1.34% 1.30% 1.33% 1.34% 1.25% Adjusted return on average assets(1) 1.44% 1.53% 1.37% 1.45% 1.26% Pre-tax pre-provision return on average assets (1) 2.13% 2.16% 2.05% 2.20% 1.97% Dividend payout ratio on common stock 13.24% 13.85% 13.85% 13.48% 3.85% Tangible book value per common share(1) $ 17.98 $ 16.35 $ 16.19 $ 17.98 $ 16.19
Non-GAAP Reconciliation 21 As of or For the Three Months Ended As of or For the Year Ended (dollars in thousands, except per share data) December 31, 2023 September 30, 2023 December 31, 2022 December 31, 2023 December 31, 2022 Net income and earnings per share excluding significant items Reported Net Income $ 29,604 $ 28,222 $ 24,367 $ 107,878 $ 87,954 Significant items: Impairment charges on ROU asset 1,981 394 372 2,395 372 Merger-related expenses 1,035 6,307 538 9,222 538 Tax benefit (793) (1,617) (118) (2,696) (118) Adjusted Net Income $ 31,827 $ 33,306 $ 25,159 $ 116,799 $ 88,746 Reported Diluted Earnings per Share $ 0.68 $ 0.65 $ 0.65 $ 2.67 $ 2.34 Significant items: Impairment charges on ROU asset 0.05 0.01 0.01 0.06 0.01 Merger-related expenses 0.02 0.15 0.01 0.23 0.01 Tax benefit (0.02) (0.04) — (0.07) — Adjusted Diluted Earnings per Share $ 0.73 $ 0.77 $ 0.67 $ 2.89 $ 2.36
Non-GAAP Reconciliation (continued) 22 As of or For the Three Months Ended As of or For the Year Ended (dollars in thousands) December 31, 2023 September 30, 2023 December 31, 2022 December 31, 2023 December 31, 2022 Adjusted non-interest expense: Non-interest expense $ 53,584 $ 57,891 $ 50,500 $ 209,603 $ 184,082 Significant items Less: Impairment charges on assets held for sale and ROU assets 1,981 394 372 2,395 372 Less: Merger-related expenses 1,035 6,307 538 9,222 538 Adjusted non-interest expense $ 50,568 $ 51,190 $ 49,590 $ 197,986 $ 183,172 Adjusted non-interest expense ex. amortization of intangible assets: Adjusted non-interest expense $ 50,568 $ 51,190 $ 49,590 $ 197,986 $ 183,172 Less: Amortization of intangible assets 1,550 1,551 1,596 6,011 6,671 Adjusted non-interest expense ex. amortization of intangible assets $ 49,018 $ 49,639 $ 47,994 $ 191,975 $ 176,501 Pre-tax pre-provision net income: Pre-tax income $ 39,969 $ 38,134 $ 31,733 $ 145,680 $ 114,683 Add: Provision for credit losses 7,235 8,803 5,826 31,653 23,879 Pre-tax pre-provision net income $ 47,204 $ 46,937 $ 37,559 $ 177,333 $ 138,562 Adjusted pre-tax pre-provision net income: Pre-tax pre-provision net income $ 47,204 $ 46,937 $ 37,559 $ 177,333 $ 138,562 Add: Impairment charges on assets held for sale and ROU assets 1,981 394 372 2,395 372 Add: Merger-related expenses 1,035 6,307 538 9,222 538 Adjusted pre-tax pre-provision net income $ 50,220 $ 53,638 $ 38,469 $ 188,950 $ 139,472 Tax equivalent net interest Income: Net interest income $ 86,285 $ 92,452 $ 76,604 $ 330,621 $ 265,330 Add: Tax-equivalent adjustment 240 248 214 903 915 Net interest income, fully taxable equivalent $ 86,525 $ 92,700 $ 76,818 $ 331,524 $ 266,245 Total revenues: Net interest income $ 86,285 $ 92,452 $ 76,604 $ 330,621 $ 265,330 Add: Non-interest income 14,503 12,376 11,455 56,315 57,314 Total revenues $ 100,788 $ 104,828 $ 88,059 $ 386,936 $ 322,644
Non-GAAP Reconciliation (continued) 23 As of or For the Three Months Ended As of or For the Year Ended (dollars in thousands) December 31, 2023 September 30, 2023 December 31, 2022 December 31, 2023 December 31, 2022 Tangible common stockholders' equity: Total stockholders' equity $ 990,151 $ 919,945 $ 765,816 $ 990,151 $ 765,816 Less: Goodwill and other intangibles 203,478 205,028 158,887 203,478 158,887 Tangible common stockholders' equity $ 786,673 $ 714,917 $ 606,929 $ 786,673 $ 606,929 Tangible assets: Total assets $ 8,881,967 $ 8,943,368 $ 7,362,941 $ 8,881,967 $ 7,362,941 Less: Goodwill and other intangibles 203,478 205,028 158,887 203,478 158,887 Tangible assets $ 8,678,489 $ 8,738,340 $ 7,204,054 $ 8,678,489 $ 7,204,054 Tangible assets, excluding accumulated other comprehensive loss: Tangible assets $ 8,678,489 $ 8,738,340 $ 7,204,054 $ 8,678,489 $ 7,204,054 Less: Accumulated other comprehensive loss (100,117) (142,159) (117,550) (100,117) (117,550) Tangible assets, excluding accumulated other comprehensive loss $ 8,778,606 $ 8,880,499 $ 7,321,604 $ 8,778,606 $ 7,321,604 Tangible common stockholders' equity, excluding accumulated other comprehensive loss: Tangible common stockholders' equity $ 786,673 $ 714,917 $ 606,929 $ 786,673 $ 606,929 Less: Accumulated other comprehensive loss (100,117) (142,159) (117,550) (100,117) (117,550) Tangible common stockholders' equity, excluding accumulated other comprehensive loss $ 886,790 $ 857,076 $ 724,479 $ 886,790 $ 724,479 Average tangible common stockholders' equity: Average total stockholders' equity $ 935,197 $ 924,278 $ 748,292 $ 863,092 $ 776,225 Less: Average goodwill and other intangibles 204,191 202,978 159,680 180,717 162,203 Average tangible common stockholders' equity $ 731,006 $ 721,300 $ 588,612 $ 682,375 $ 611,563 Average tangible assets: Average total assets $ 8,787,636 $ 8,634,345 $ 7,266,053 $ 8,048,331 $ 7,018,779 Less: Average goodwill and other intangibles 204,191 202,978 159,680 180,717 162,203 Average tangible assets $ 8,583,445 $ 8,431,367 $ 7,106,373 $ 7,867,614 $ 6,856,576 Tangible net income available to common stockholders: Net income available to common stockholders $ 29,604 $ 28,222 $ 24,367 $ 107,878 $ 87,758 Add: After-tax intangible asset amortization 1,138 1,137 1,170 4,408 4,890 Tangible net income available to common stockholders $ 30,742 $ 29,359 $ 25,537 $ 112,286 $ 92,648 Adjusted tangible net income available to common stockholders: Tangible net income available to common stockholders $ 30,742 $ 29,359 $ 25,537 $ 112,286 $ 92,648 Impairment charges on assets held for sale and ROU assets 1,981 394 372 2,395 372 Merger-related expenses 1,035 6,307 538 9,222 538 Tax benefit on significant items (793) (1,617) (118) (2,696) (118) Adjusted tangible net income available to common stockholders $ 32,965 $ 34,443 $ 26,329 $ 121,207 $ 93,440
Non-GAAP Reconciliation (continued) 24 As of or For the Three Months Ended As of or For the Year Ended (dollars in thousands, except share and per share data, ratios annualized, where applicable) December 31, 2023 September 30, 2023 December 31, 2022 December 31, 2023 December 31, 2022 Pre-tax pre-provision return on average assets: Pre-tax pre-provision net income $ 47,204 $ 46,937 $ 37,559 $ 177,333 $ 138,562 Average total assets 8,787,636 8,634,345 7,266,053 8,048,331 7,018,779 Pre-tax pre-provision return on average assets 2.13% 2.16% 2.05% 2.20% 1.97% Adjusted pre-tax pre-provision return on average assets: Adjusted pre-tax pre-provision net income $ 50,220 $ 53,638 $ 38,469 $ 188,950 $ 139,472 Average total assets 8,787,636 8,634,345 7,266,053 8,048,331 7,018,779 Adjusted pre-tax pre-provision return on average assets 2.27% 2.46% 2.10% 2.35% 1.99% Net interest margin, fully taxable equivalent Net interest income, fully taxable equivalent $ 86,525 $ 92,700 $ 76,818 $ 331,524 $ 266,245 Total average interest-earning assets 8,387,877 8,220,678 6,922,890 7,677,848 6,630,464 Net interest margin, fully taxable equivalent 4.09% 4.47% 4.40% 4.32% 4.01% Non-interest income to total revenues: Non-interest income $ 14,503 $ 12,376 $ 11,455 $ 56,315 $ 57,314 Total revenues 100,788 104,828 88,059 386,936 322,644 Non-interest income to total revenues 14.39% 11.81% 13.01% 14.55% 17.76% Adjusted non-interest expense to average assets: Adjusted non-interest expense $ 50,568 $ 51,190 $ 49,590 $ 197,986 $ 183,172 Average total assets 8,787,636 8,634,345 7,266,053 8,048,331 7,018,779 Adjusted non-interest expense to average assets 2.28% 2.35% 2.71% 2.46% 2.61% Adjusted efficiency ratio: Adjusted non-interest expense excluding amortization of intangible assets $ 49,018 $ 49,639 $ 47,994 $ 191,975 $ 176,501 Total revenues 100,788 104,828 88,059 386,936 322,644 Adjusted efficiency ratio 48.64% 47.35% 54.50% 49.61% 54.70% Adjusted return on average assets: Adjusted net income $ 31,827 $ 33,306 $ 25,159 $ 116,799 $ 88,746 Average total assets 8,787,636 8,634,345 7,266,053 8,048,331 7,018,779 Adjusted return on average assets 1.44% 1.53% 1.37% 1.45% 1.26% Adjusted return on average stockholders' equity: Adjusted net income $ 31,827 $ 33,306 $ 25,159 $ 116,799 $ 88,746 Average stockholders' equity 935,197 924,278 748,292 863,092 776,225 Adjusted return on average stockholders' equity 13.50% 14.30% 13.34% 13.53% 11.43%
Non-GAAP Reconciliation (continued) 25 As of or For the Three Months Ended As of or For the Year Ended December 31, 2023 September 30, 2023 December 31, 2022 December 31, 2023 December 31, 2022 Tangible common equity to tangible assets: Tangible common equity $ 786,673 $ 714,917 $ 606,929 $ 786,673 $ 606,929 Tangible assets 8,678,489 8,738,340 7,204,054 8,678,489 7,204,054 Tangible common equity to tangible assets 9.06% 8.18% 8.42% 9.06% 8.42% Tangible common stockholders' equity, excluding accumulated other comprehensive loss to tangible assets, excluding accumulated other comprehensive loss Tangible common stockholders' equity, excluding accumulated other comprehensive loss $ 886,790 $ 857,076 $ 724,479 $ 886,790 $ 724,479 Tangible assets, excluding accumulated other comprehensive loss: 8,778,606 8,880,499 7,321,604 8,778,606 7,204,054 Tangible common stockholders' equity, excluding accumulated other comprehensive loss to tangible assets, excluding accumulated other comprehensive loss 10.10% 9.65% 9.90% 10.10% 10.06% Return on average tangible common stockholders' equity: Tangible net income available to common stockholders $ 30,742 $ 29,359 $ 25,537 $ 112,286 $ 92,648 Average tangible common stockholders' equity 731,006 721,300 588,612 682,375 611,563 Return on average tangible common stockholders' equity 16.68% 16.15% 17.21% 16.46% 15.15% Adjusted return on average tangible common stockholders' equity: Adjusted tangible net income available to common stockholders $ 32,965 $ 34,443 $ 26,329 $ 121,207 $ 93,440 Average tangible common stockholders' equity 731,006 721,300 588,612 682,375 611,563 Adjusted return on average tangible common stockholders' equity 17.89% 18.95% 17.75% 17.76% 15.28% Tangible book value per share: Tangible common equity $ 786,673 $ 714,917 $ 606,929 $ 786,673 $ 606,929 Common shares outstanding 43,764,056 43,719,203 37,492,775 43,764,056 37,492,775 Tangible book value per share $ 17.98 $ 16.35 $ 16.19 $ 17.98 $ 16.19 Accumulated other comprehensive loss to tangible common equity: Accumulated other comprehensive loss $ 100,117 $ 142,159 $ 117,550 $ 100,117 $ 117,550 Tangible common equity 786,673 714,917 606,929 786,673 606,929 Accumulated other comprehensive loss to tangible common equity 12.7% 19.9% 19.4% 12.7% 19.4%
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