UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM
CURRENT REPORT
PURSUANT TO SECTION 13 OR 15(d)
OF THE SECURITIES EXCHANGE ACT OF 1934
Date of Report (Date of earliest event reported):
(Exact Name of Registrant as Specified in Its Charter)
(State or Other Jurisdiction
of Incorporation)
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(Commission File Number) |
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(I.R.S. Employer Identification No.) |
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(Address of Principal Executive Offices) |
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(Zip Code) |
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(Registrant’s Telephone Number, Including Area Code)
Not Applicable
(Former Name or Former Address, if Changed Since Last Report)
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):
Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) |
Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) |
Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) |
Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) |
Securities registered pursuant to Section 12(b) of the Act:
Title of each class |
Trading Symbol(s) |
Name of each exchange on which registered |
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.
1
Special Note:
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This 8-K/A is filed to correct an error in the filing of exhibit 99.2.
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Item 2.02. |
Results of Operations and Financial Condition.
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On April 28, 2022, the Company made available on its website a slide presentation regarding the Company’s first quarter 2022 financial results, which will be used as part of a publicly accessible conference call on April 29, 2022. A copy of the slide presentation is attached as Exhibit 99.2 and is incorporated herein by reference.
The information included in this Current Report on Form 8-K (including the information in the attached exhibits 99.1 and 99.2) is being furnished and shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended, nor shall it be deemed incorporated by reference in any filing under the Securities Act of 1933, as amended, except as shall be expressly set forth by specific reference in any such filing.
Item 9.01. |
Financial Statements and Exhibits. |
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(d) Exhibits.
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Exhibit No. |
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Description |
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99.1 |
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First quarter 2022 financial results press release, dated April 28, 2022
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99.2 |
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Slide Presentation regarding first quarter 2022 financial results
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104 |
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Cover Page Interactive Data File (embedded within the Inline XBRL document) |
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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, 2021. Any forward-looking statement speaks only as of the date on which it is made, and Byline undertakes no obligation to update any forward-looking statement, whether to reflect events or circumstances after the date on which the statement is made, to reflect new information or the occurrence of unanticipated events, or otherwise unless required under the federal securities laws.
2
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: April 28, 2022 |
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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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3
Exhibit 99.1
Byline Bancorp, Inc. Reports First Quarter 2022 Financial Results
Select First Quarter 2022 Financial Highlights
Chicago, IL, April 28, 2022 – Byline Bancorp, Inc. ("Byline", the “Company”, "we", "our", or "us")(NYSE: BY), the parent company of Byline Bank (the “Bank”), today reported net income of $22.3 million, or $0.58 per diluted share, for the first quarter of 2022, compared with net income of $17.2 million, or $0.45 per diluted share, for the fourth quarter of 2021, and net income of $21.8 million, or $0.56 per diluted share, for the first quarter 2021.
Roberto R. Herencia, Executive Chairman and Chief Executive Officer of Byline Bancorp, Inc., commented, “During the first quarter, we delivered strong results driven by solid loan and lease production and deposit gathering across our commercial banking platform. We continue to manage our operating expenses prudently, even as we invest for the future. Our credit quality remains strong, and we continue to approach credit decisions with a through-the-cycle lens. We continued to return capital to our stockholders, including repurchasing nearly $8 million of common stock. The year is off to a great start, and I would like to thank the Byline employees, who once again enabled our strong performance through their dedication and hard work.”
Alberto J. Paracchini, President of Byline Bancorp, Inc. added, “While the geopolitical and macro environment has become more volatile, we remain focused on executing our strategy. Despite this environment, our results during the quarter show we continued to effectively support our customers and I am encouraged that our more resilient and diversified franchise can generate solid returns in uncertain markets.”
Redemption of Series B Preferred Stock
On March 31, 2022, the Company redeemed all 10,438 outstanding shares of its 7.5% fixed-to-floating noncumulative perpetual preferred stock, Series B. The redemption totaled $10.6 million, including the quarterly dividend payment.
Board Declares Cash Dividend of $0.09 per Share
On April 26, 2022, the Company's Board of Directors declared a cash dividend of $0.09 per share, payable on May 23, 2022, to stockholders of record of the Company's common stock as of May 9, 2022.
Byline Bancorp, Inc.
Page 2 of 16
STATEMENTS OF OPERATIONS
Net Interest Income
The following table presents the average interest-earning assets and average interest-bearing liabilities for the periods indicated. Net interest income and margin are adjusted to reflect tax-exempt interest income on a tax-equivalent basis using tax rates effective as of the end of the period:
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For the Three Months Ended |
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March 31, 2022 |
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December 31, 2021 |
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March 31, 2021 |
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(dollars in thousands) |
Average |
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Interest |
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Avg. |
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Average |
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Interest |
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Avg. |
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Average |
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Interest |
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Avg. |
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ASSETS |
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Cash and cash equivalents |
$ |
74,822 |
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$ |
29 |
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0.16 |
% |
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$ |
106,170 |
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$ |
42 |
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0.16 |
% |
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$ |
55,477 |
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$ |
28 |
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0.21 |
% |
Loans and leases(1) |
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4,670,070 |
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55,426 |
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4.81 |
% |
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4,610,608 |
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58,570 |
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5.04 |
% |
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4,432,246 |
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53,808 |
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4.92 |
% |
Taxable securities |
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1,339,345 |
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5,475 |
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1.66 |
% |
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1,288,969 |
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5,111 |
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1.57 |
% |
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1,430,625 |
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5,379 |
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1.52 |
% |
Tax-exempt securities(2) |
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169,652 |
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1,124 |
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2.69 |
% |
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184,015 |
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1,217 |
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2.62 |
% |
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179,364 |
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1,194 |
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2.70 |
% |
Total interest-earning assets |
$ |
6,253,889 |
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$ |
62,054 |
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4.02 |
% |
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$ |
6,189,762 |
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$ |
64,940 |
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4.16 |
% |
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$ |
6,097,712 |
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$ |
60,409 |
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4.02 |
% |
Allowance for loan |
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(55,885 |
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(59,144 |
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(66,989 |
) |
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All other assets |
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507,982 |
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568,451 |
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557,042 |
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TOTAL ASSETS |
$ |
6,705,986 |
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$ |
6,699,069 |
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$ |
6,587,765 |
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LIABILITIES AND STOCKHOLDERS’ |
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Deposits |
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Interest checking |
$ |
579,297 |
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$ |
178 |
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0.12 |
% |
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$ |
659,841 |
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$ |
236 |
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0.14 |
% |
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$ |
546,730 |
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$ |
199 |
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0.15 |
% |
Money market accounts |
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1,255,431 |
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474 |
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0.15 |
% |
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1,089,398 |
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345 |
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0.13 |
% |
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1,124,101 |
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381 |
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0.14 |
% |
Savings |
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649,269 |
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76 |
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0.05 |
% |
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633,469 |
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75 |
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0.05 |
% |
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577,504 |
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67 |
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0.05 |
% |
Time deposits |
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662,080 |
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359 |
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0.22 |
% |
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688,154 |
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381 |
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0.22 |
% |
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777,266 |
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774 |
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0.40 |
% |
Total interest-bearing |
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3,146,077 |
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1,087 |
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0.14 |
% |
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3,070,862 |
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1,037 |
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0.13 |
% |
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3,025,601 |
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1,421 |
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0.19 |
% |
Other borrowings |
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290,545 |
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395 |
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0.55 |
% |
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385,787 |
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330 |
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0.34 |
% |
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649,639 |
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502 |
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0.31 |
% |
Subordinated notes and |
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110,490 |
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1,600 |
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5.87 |
% |
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110,341 |
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1,589 |
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5.71 |
% |
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109,859 |
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1,596 |
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5.89 |
% |
Total borrowings |
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401,035 |
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1,995 |
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2.02 |
% |
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496,128 |
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1,919 |
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1.53 |
% |
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759,498 |
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2,098 |
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1.12 |
% |
Total interest-bearing liabilities |
$ |
3,547,112 |
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$ |
3,082 |
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0.35 |
% |
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$ |
3,566,990 |
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$ |
2,956 |
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0.33 |
% |
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$ |
3,785,099 |
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$ |
3,519 |
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0.38 |
% |
Non-interest-bearing |
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2,248,035 |
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2,222,583 |
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1,924,178 |
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Other liabilities |
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78,678 |
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70,521 |
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72,036 |
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Total stockholders’ equity |
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832,161 |
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838,975 |
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806,452 |
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TOTAL LIABILITIES AND |
$ |
6,705,986 |
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$ |
6,699,069 |
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$ |
6,587,765 |
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Net interest spread(3) |
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3.67 |
% |
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3.83 |
% |
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3.64 |
% |
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Net interest income, fully |
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$ |
58,972 |
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$ |
61,984 |
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$ |
56,890 |
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Net interest margin, fully |
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3.82 |
% |
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3.97 |
% |
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3.78 |
% |
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Tax-equivalent adjustment |
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(236 |
) |
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0.01 |
% |
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(256 |
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0.01 |
% |
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(250 |
) |
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0.01 |
% |
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Net interest income |
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$ |
58,736 |
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$ |
61,728 |
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$ |
56,640 |
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Net interest margin(4) |
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3.81 |
% |
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3.96 |
% |
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3.77 |
% |
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Net loan accretion impact |
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$ |
1,476 |
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0.10 |
% |
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$ |
1,450 |
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0.09 |
% |
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$ |
1,968 |
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0.13 |
% |
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(1) Loan and lease balances are net of deferred origination fees and costs and initial indirect costs. Non-accrual loans and leases are included in total loan and lease balances.
(2) Interest income and rates include the effects of a tax equivalent adjustment to adjust tax exempt investment income on tax exempt investment securities to a fully taxable basis, assuming a federal income tax rate of 21%.
(3) Represents the average rate earned on interest-earning assets minus the average rate paid on interest-bearing liabilities.
(4) Represents net interest income (annualized) divided by total average earning assets.
(5) Average balances are average daily balances.
Byline Bancorp, Inc.
Page 3 of 16
The following table presents net interest income for the periods indicated:
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March 31, 2022 |
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Three Months Ended |
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Change from |
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March 31, |
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December 31, |
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March 31, |
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December 31, |
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March 31, |
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(dollars in thousands) |
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2022 |
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2021 |
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2021 |
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2021 |
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2021 |
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INTEREST AND DIVIDEND INCOME |
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Interest and fees on loans and leases |
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$ |
55,426 |
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$ |
58,570 |
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$ |
53,808 |
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(5.4 |
)% |
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3.0 |
% |
Interest on securities |
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6,155 |
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5,619 |
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6,089 |
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9.5 |
% |
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1.1 |
% |
Other interest and dividend income |
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237 |
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495 |
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262 |
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(52.2 |
)% |
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(9.6 |
)% |
Total interest and dividend income |
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61,818 |
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64,684 |
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60,159 |
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(4.4 |
)% |
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2.8 |
% |
INTEREST EXPENSE |
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Deposits |
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1,087 |
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1,037 |
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1,421 |
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4.8 |
% |
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(23.5 |
)% |
Other borrowings |
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395 |
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|
330 |
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502 |
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19.9 |
% |
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(21.4 |
)% |
Subordinated notes and debentures |
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1,600 |
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1,589 |
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1,596 |
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0.7 |
% |
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0.3 |
% |
Total interest expense |
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3,082 |
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2,956 |
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3,519 |
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4.3 |
% |
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(12.4 |
)% |
Net interest income |
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$ |
58,736 |
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$ |
61,728 |
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$ |
56,640 |
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(4.8 |
)% |
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3.7 |
% |
Net interest income for the first quarter of 2022 was $58.7 million, a decrease of $3.0 million, or 4.8%, from the fourth quarter of 2021.
The decrease in net interest income was primarily due to:
Partially offset by:
Tax-equivalent net interest margin for the first quarter of 2022 was 3.82%, a decrease of 15 basis points compared to the fourth quarter of 2021. Total net accretion income on acquired loans contributed 10 basis points to the net interest margin for the first quarter of 2022 compared to nine basis points for the fourth quarter of 2021, an increase of one basis point. PPP loan interest income and net fee income combined, contributed $2.7 million to net interest income for the first quarter of 2022 compared to $4.5 million for the fourth quarter of 2021.
The average cost of total deposits was 0.08% for the first quarter of 2022, flat compared to the fourth quarter of 2021. Average non-interest-bearing demand deposits increased $25.5 million, while average money market account deposits increased by $166.0 million. Average non-interest-bearing demand deposits were 41.7% of average total deposits for the first quarter of 2022 compared to 42.0% during the fourth quarter of 2021.
Provision for Loan and Lease Losses
The provision for loan and lease losses was $5.0 million for the first quarter of 2022, an increase of $6.3 million compared to a recapture of provision of $1.3 million for the fourth quarter of 2021. The increase in provision during the first quarter of 2022 was mainly driven by changes to qualitative factors surrounding macroeconomic environment and growth in the loan and lease portfolio.
Byline Bancorp, Inc.
Page 4 of 16
Non-interest Income
The following table presents the components of non-interest income for the periods indicated:
|
|
Three Months Ended |
|
|
March 31, 2022 |
|
||||||||||||||
|
|
March 31, |
|
|
December 31, |
|
|
March 31, |
|
|
December 31, |
|
|
March 31, |
|
|||||
(dollars in thousands) |
|
2022 |
|
|
2021 |
|
|
2021 |
|
|
2021 |
|
|
2021 |
|
|||||
NON-INTEREST INCOME |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Fees and service charges on deposits |
|
$ |
1,884 |
|
|
$ |
1,955 |
|
|
$ |
1,664 |
|
|
|
(3.6 |
)% |
|
|
13.2 |
% |
Loan servicing revenue |
|
|
3,380 |
|
|
|
3,392 |
|
|
|
2,769 |
|
|
|
(0.3 |
)% |
|
|
22.1 |
% |
Loan servicing asset revaluation |
|
|
(1,231 |
) |
|
|
(2,510 |
) |
|
|
(1,505 |
) |
|
|
(50.9 |
)% |
|
|
(18.2 |
)% |
ATM and interchange fees |
|
|
1,049 |
|
|
|
1,219 |
|
|
|
1,012 |
|
|
|
(14.0 |
)% |
|
|
3.6 |
% |
Net realized gains (losses) on securities |
|
|
— |
|
|
|
(21 |
) |
|
|
1,462 |
|
|
NM |
|
|
NM |
|
||
Change in fair value of equity securities, net |
|
|
(151 |
) |
|
|
(98 |
) |
|
|
(206 |
) |
|
|
54.8 |
% |
|
|
(26.7 |
)% |
Net gains on sales of loans |
|
|
10,827 |
|
|
|
12,924 |
|
|
|
8,319 |
|
|
|
(16.2 |
)% |
|
|
30.1 |
% |
Wealth management and trust income |
|
|
1,048 |
|
|
|
764 |
|
|
|
768 |
|
|
|
37.3 |
% |
|
|
36.5 |
% |
Other non-interest income |
|
|
2,620 |
|
|
|
1,389 |
|
|
|
1,459 |
|
|
|
88.7 |
% |
|
|
79.6 |
% |
Total non-interest income |
|
$ |
19,426 |
|
|
$ |
19,014 |
|
|
$ |
15,742 |
|
|
|
2.2 |
% |
|
|
23.4 |
% |
Non-interest income for the first quarter of 2022 was $19.4 million, an increase of $412,000, or 2.2%, compared to $19.0 million for the fourth quarter of 2021.
The increase in total non-interest income was primarily due to:
Partially offset by:
During the first quarter of 2022, we sold $102.3 million of U.S. government guaranteed loans compared to $113.9 million during the fourth quarter of 2021.
Non-interest Expense
The following table presents the components of non-interest expense for the periods indicated:
|
|
Three Months Ended |
|
|
March 31, 2022 |
|
||||||||||||||
|
|
March 31, |
|
|
December 31, |
|
|
March 31, |
|
|
December 31, |
|
|
March 31, |
|
|||||
(dollars in thousands) |
|
2022 |
|
|
2021 |
|
|
2021 |
|
|
2021 |
|
|
2021 |
|
|||||
NON-INTEREST EXPENSE |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Salaries and employee benefits |
|
$ |
28,959 |
|
|
$ |
28,850 |
|
|
$ |
21,806 |
|
|
|
0.4 |
% |
|
|
32.8 |
% |
Occupancy and equipment expense, net |
|
|
5,128 |
|
|
|
4,995 |
|
|
|
5,779 |
|
|
|
2.7 |
% |
|
|
(11.3 |
)% |
Impairment charge on assets held for sale |
|
|
— |
|
|
|
8,351 |
|
|
|
604 |
|
|
NM |
|
|
NM |
|
||
Loan and lease related expenses |
|
|
(891 |
) |
|
|
2,328 |
|
|
|
951 |
|
|
NM |
|
|
NM |
|
||
Legal, audit and other professional fees |
|
|
2,600 |
|
|
|
2,376 |
|
|
|
2,214 |
|
|
|
9.5 |
% |
|
|
17.5 |
% |
Data processing |
|
|
3,186 |
|
|
|
3,070 |
|
|
|
2,755 |
|
|
|
3.8 |
% |
|
|
15.7 |
% |
Net loss recognized on other real estate |
|
|
54 |
|
|
|
26 |
|
|
|
621 |
|
|
|
110.9 |
% |
|
|
(91.2 |
)% |
Other intangible assets amortization expense |
|
|
1,596 |
|
|
|
1,738 |
|
|
|
1,749 |
|
|
|
(8.1 |
)% |
|
|
(8.7 |
)% |
Other non-interest expense |
|
|
3,923 |
|
|
|
7,234 |
|
|
|
2,363 |
|
|
|
(45.8 |
)% |
|
|
66.0 |
% |
Total non-interest expense |
|
$ |
44,555 |
|
|
$ |
58,968 |
|
|
$ |
38,842 |
|
|
|
(24.4 |
)% |
|
|
14.7 |
% |
Non-interest expense for the first quarter of 2022 was $44.6 million, a decrease of $14.4 million, or 24.4%, from $59.0 million for the fourth quarter of 2021.
Byline Bancorp, Inc.
Page 5 of 16
The decrease in total non-interest expense was primarily due to:
Our efficiency ratio was 54.96% for the first quarter of 2022 compared to 70.88% for the fourth quarter of 2021. Excluding asset impairment charges, our adjusted efficiency ratio1 was 55.46% for the fourth quarter of 2021.
(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.
INCOME TAXES
We recorded income tax expense of $6.3 million during the first quarter of 2022, compared to $5.9 million during the fourth quarter of 2021. The effective tax rate was 22.0% and 25.5% for the first quarter of 2022 and fourth quarter of 2021, respectively. The decrease in the effective tax rate during the first quarter of 2022 was a result of income tax benefits related to share-based compensation.
STATEMENTS OF FINANCIAL CONDITION
Total assets were $6.8 billion at March 31, 2022, an increase of $138.5 million compared to $6.7 billion at December 31, 2021.
The current quarter increase was primarily due to:
Partially offset by:
Byline Bancorp, Inc.
Page 6 of 16
The following table shows our allocation of the originated, acquired impaired, and acquired non-impaired loans and leases at the dates indicated:
|
|
March 31, 2022 |
|
|
December 31, 2021 |
|
|
March 31, 2021 |
|
|||||||||||||||
(dollars in thousands) |
|
Amount |
|
|
% of Total |
|
|
Amount |
|
|
% of Total |
|
|
Amount |
|
|
% of Total |
|
||||||
Originated loans and leases |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Commercial real estate |
|
$ |
1,527,920 |
|
|
|
31.9 |
% |
|
$ |
1,379,000 |
|
|
|
30.4 |
% |
|
$ |
1,064,151 |
|
|
|
23.9 |
% |
Residential real estate |
|
|
399,638 |
|
|
|
8.3 |
% |
|
|
379,796 |
|
|
|
8.4 |
% |
|
|
399,958 |
|
|
|
9.0 |
% |
Construction, land development, and |
|
|
351,519 |
|
|
|
7.3 |
% |
|
|
323,886 |
|
|
|
7.1 |
% |
|
|
238,122 |
|
|
|
5.3 |
% |
Commercial and industrial |
|
|
1,698,025 |
|
|
|
35.5 |
% |
|
|
1,534,745 |
|
|
|
33.8 |
% |
|
|
1,285,759 |
|
|
|
28.9 |
% |
Paycheck Protection Program |
|
|
36,260 |
|
|
|
0.8 |
% |
|
|
123,712 |
|
|
|
2.7 |
% |
|
|
617,006 |
|
|
|
13.8 |
% |
Installment and other |
|
|
945 |
|
|
|
0.0 |
% |
|
|
940 |
|
|
|
0.0 |
% |
|
|
1,094 |
|
|
|
0.0 |
% |
Leasing financing receivables |
|
|
379,527 |
|
|
|
7.9 |
% |
|
|
352,247 |
|
|
|
7.8 |
% |
|
|
243,399 |
|
|
|
5.5 |
% |
Total originated loans and leases |
|
$ |
4,393,834 |
|
|
|
91.7 |
% |
|
$ |
4,094,326 |
|
|
|
90.2 |
% |
|
$ |
3,849,489 |
|
|
|
86.4 |
% |
Acquired impaired loans |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Commercial real estate |
|
$ |
67,092 |
|
|
|
1.4 |
% |
|
$ |
72,160 |
|
|
|
1.6 |
% |
|
$ |
96,059 |
|
|
|
2.2 |
% |
Residential real estate |
|
|
47,347 |
|
|
|
1.0 |
% |
|
|
49,401 |
|
|
|
1.1 |
% |
|
|
74,283 |
|
|
|
1.7 |
% |
Construction, land development, and |
|
|
1,357 |
|
|
|
0.0 |
% |
|
|
1,312 |
|
|
|
0.0 |
% |
|
|
1,992 |
|
|
|
0.0 |
% |
Commercial and industrial |
|
|
3,792 |
|
|
|
0.1 |
% |
|
|
4,014 |
|
|
|
0.1 |
% |
|
|
8,842 |
|
|
|
0.2 |
% |
Installment and other |
|
|
163 |
|
|
|
0.0 |
% |
|
|
164 |
|
|
|
0.0 |
% |
|
|
191 |
|
|
|
0.0 |
% |
Total acquired impaired loans |
|
$ |
119,751 |
|
|
|
2.5 |
% |
|
$ |
127,051 |
|
|
|
2.8 |
% |
|
$ |
181,367 |
|
|
|
4.1 |
% |
Acquired non-impaired loans and leases |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Commercial real estate |
|
$ |
184,353 |
|
|
|
3.8 |
% |
|
$ |
214,588 |
|
|
|
4.7 |
% |
|
$ |
271,458 |
|
|
|
6.0 |
% |
Residential real estate |
|
|
47,735 |
|
|
|
1.0 |
% |
|
|
51,317 |
|
|
|
1.1 |
% |
|
|
71,038 |
|
|
|
1.6 |
% |
Construction, land development, and |
|
|
196 |
|
|
|
0.1 |
% |
|
|
201 |
|
|
|
0.1 |
% |
|
|
210 |
|
|
|
0.0 |
% |
Commercial and industrial |
|
|
37,794 |
|
|
|
0.8 |
% |
|
|
43,202 |
|
|
|
1.0 |
% |
|
|
69,795 |
|
|
|
1.6 |
% |
Installment and other |
|
|
248 |
|
|
|
0.0 |
% |
|
|
264 |
|
|
|
0.0 |
% |
|
|
331 |
|
|
|
0.0 |
% |
Leasing financing receivables |
|
|
5,157 |
|
|
|
0.1 |
% |
|
|
6,179 |
|
|
|
0.1 |
% |
|
|
10,932 |
|
|
|
0.3 |
% |
Total acquired non-impaired loans |
|
$ |
275,483 |
|
|
|
5.8 |
% |
|
$ |
315,751 |
|
|
|
7.0 |
% |
|
$ |
423,764 |
|
|
|
9.5 |
% |
Total loans and leases |
|
$ |
4,789,068 |
|
|
|
100.0 |
% |
|
$ |
4,537,128 |
|
|
|
100.0 |
% |
|
$ |
4,454,620 |
|
|
|
100.0 |
% |
Allowance for loan and lease losses |
|
|
(59,458 |
) |
|
|
|
|
|
(55,012 |
) |
|
|
|
|
|
(65,590 |
) |
|
|
|
|||
Total loans and leases, net of allowance for |
|
$ |
4,729,610 |
|
|
|
|
|
$ |
4,482,116 |
|
|
|
|
|
$ |
4,389,030 |
|
|
|
|
|||
PPP loans outstanding were $36.3 million as of March 31, 2022, compared with $123.7 million at December 31, 2021. The decreased was as a result of forgiveness of PPP loans. Forgiveness for the first quarter 2022 was $73.7 million compared to $160.3 million for the fourth quarter of 2021. As of March 31, 2022, 279 PPP loans remain outstanding, and more than 94% of PPP loan balances have been forgiven.
Byline Bancorp, Inc.
Page 7 of 16
ASSET QUALITY
Non-Performing Assets
The following table sets forth the amounts of non-performing loans and leases (excluding acquired impaired), other real estate owned, and accruing troubled debt restructured loans at the dates indicated:
|
|
|
|
|
|
|
|
|
|
|
March 31, 2022 |
|
||||||||
(dollars in thousands) |
|
March 31, 2022 |
|
|
December 31, 2021 |
|
|
March 31, 2021 |
|
|
December 31, 2021 |
|
|
March 31, 2021 |
|
|||||
Non-performing assets: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Non-accrual loans and leases |
|
$ |
20,277 |
|
|
$ |
23,130 |
|
|
$ |
37,084 |
|
|
|
(12.3 |
)% |
|
|
(45.3 |
)% |
Past due loans and leases 90 days or more |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
—% |
|
|
—% |
|
||
Total non-performing loans and leases |
|
$ |
20,277 |
|
|
$ |
23,130 |
|
|
$ |
37,084 |
|
|
|
(12.3 |
)% |
|
|
(45.3 |
)% |
Other real estate owned |
|
|
2,221 |
|
|
|
2,112 |
|
|
|
5,952 |
|
|
|
5.2 |
% |
|
|
(62.7 |
)% |
Total non-performing assets |
|
$ |
22,498 |
|
|
$ |
25,242 |
|
|
$ |
43,036 |
|
|
|
(10.9 |
)% |
|
|
(47.7 |
)% |
Accruing troubled debt restructured loans (1) |
|
$ |
1,456 |
|
|
$ |
1,927 |
|
|
$ |
2,719 |
|
|
|
(24.4 |
)% |
|
|
(46.5 |
)% |
Total non-performing loans and leases as a |
|
|
0.42 |
% |
|
|
0.51 |
% |
|
|
0.83 |
% |
|
|
|
|
|
|
||
Total non-performing assets as a percentage |
|
|
0.33 |
% |
|
|
0.38 |
% |
|
|
0.64 |
% |
|
|
|
|
|
|
||
Allowance for loan and lease losses as a |
|
|
293.23 |
% |
|
|
237.84 |
% |
|
|
176.87 |
% |
|
|
|
|
|
|
||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Non-performing assets guaranteed by |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Non-accrual loans guaranteed |
|
$ |
1,832 |
|
|
$ |
3,270 |
|
|
$ |
3,388 |
|
|
|
(44.0 |
)% |
|
|
(45.9 |
)% |
Past due loans 90 days or more and still |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
—% |
|
|
—% |
|
||
Total non-performing loans guaranteed |
|
$ |
1,832 |
|
|
$ |
3,270 |
|
|
$ |
3,388 |
|
|
|
(44.0 |
)% |
|
|
(45.9 |
)% |
Accruing troubled debt restructured loans |
|
$ |
— |
|
|
$ |
— |
|
|
$ |
— |
|
|
—% |
|
|
—% |
|
||
Total non-performing loans and leases |
|
|
0.39 |
% |
|
|
0.44 |
% |
|
|
0.76 |
% |
|
|
|
|
|
|
||
Total non-performing assets not guaranteed |
|
|
0.30 |
% |
|
|
0.33 |
% |
|
|
0.59 |
% |
|
|
|
|
|
|
||
(1) Accruing troubled debt restructured loans are not included in total non-performing loans and leases or in non-performing assets.
Variances in non-performing assets were:
Allowance for Loan and Lease Losses
The following table presents the balance and activity within the allowance for loan and lease losses for the periods indicated:
|
|
Three Months Ended |
|
|||||||||
|
|
March 31, |
|
|
December 31, |
|
|
March 31, |
|
|||
(dollars in thousands) |
|
2022 |
|
|
2021 |
|
|
2021 |
|
|||
Allowance for loan and lease losses, beginning of period |
|
$ |
55,012 |
|
|
$ |
60,598 |
|
|
$ |
66,347 |
|
Provision/(recapture) for loan and lease losses |
|
|
4,995 |
|
|
|
(1,293 |
) |
|
|
4,367 |
|
Net charge-offs of loans and leases |
|
|
(549 |
) |
|
|
(4,293 |
) |
|
|
(5,124 |
) |
Allowance for loan and lease losses, end of period |
|
$ |
59,458 |
|
|
$ |
55,012 |
|
|
$ |
65,590 |
|
|
|
|
|
|
|
|
|
|
|
|||
Allowance for loan and lease losses to period end |
|
|
1.24 |
% |
|
|
1.21 |
% |
|
|
1.47 |
% |
Net charge-offs (annualized) to average loans |
|
|
0.05 |
% |
|
|
0.37 |
% |
|
|
0.47 |
% |
Provision/(recapture) for loan and lease losses |
|
|
9.09 |
x |
|
(0.30)x |
|
|
|
0.85 |
x |
|
Byline Bancorp, Inc.
Page 8 of 16
The allowance for loan and lease losses as a percentage of total loans and leases held for investment increased to 1.24% at March 31, 2022 compared to 1.21% at December 31, 2021.
In June 2016, the Financial Accounting Standards Board (“FASB”) issued new guidance on the recognition of credit losses, otherwise known as "CECL", which replaces the incurred loss impairment methodology with a methodology that reflects current expected credit losses. In November 2019, the FASB delayed the effective date of the standard for smaller reporting companies, which includes emerging growth companies. The Company anticipates adopting the standard on December 31, 2022. We are in the process of implementation and determining the impact that this new authoritative guidance will have on our consolidated financial statements.
Net Charge-Offs
Net charge-offs during the first quarter of 2022 were $549,000, or 0.05% of average loans and leases, on an annualized basis, a decrease of $3.7 million compared to $4.3 million, or 0.37% of average loans and leases, during the fourth quarter of 2021, and a decrease of $4.6 million from $5.1 million or 0.47% of average loans and leases from the comparable period a year ago.
Net charge-offs for the first quarter of 2022 included $362,000 in the unguaranteed portion of U.S. government guaranteed loans, while net charge-offs for the fourth quarter of 2021 and first quarter of 2021 included $1.5 million and $3.3 million, respectively, in the unguaranteed portion of U.S. government guaranteed loans.
Deposits and Other Liabilities
The following table presents the composition of deposits at the dates indicated:
|
|
|
|
|
|
|
|
|
|
|
March 31, 2022 |
|
||||||||
(dollars in thousands) |
|
March 31, 2022 |
|
|
December 31, 2021 |
|
|
March 31, 2021 |
|
|
December 31, 2021 |
|
|
March 31, 2021 |
|
|||||
Non-interest-bearing demand deposits |
|
$ |
2,281,612 |
|
|
$ |
2,158,420 |
|
|
$ |
2,015,643 |
|
|
|
5.7 |
% |
|
|
13.2 |
% |
Interest-bearing checking accounts |
|
|
596,497 |
|
|
|
572,426 |
|
|
|
567,660 |
|
|
|
4.2 |
% |
|
|
5.1 |
% |
Money market demand accounts |
|
|
1,357,679 |
|
|
|
1,106,272 |
|
|
|
1,075,330 |
|
|
|
22.7 |
% |
|
|
26.3 |
% |
Other savings |
|
|
659,218 |
|
|
|
638,218 |
|
|
|
600,725 |
|
|
|
3.3 |
% |
|
|
9.7 |
% |
Time deposits (below $250,000) |
|
|
505,141 |
|
|
|
532,589 |
|
|
|
579,682 |
|
|
|
(5.2 |
)% |
|
|
(12.9 |
)% |
Time deposits ($250,000 and above) |
|
|
129,955 |
|
|
|
147,122 |
|
|
|
185,500 |
|
|
|
(11.7 |
)% |
|
|
(29.9 |
)% |
Total deposits |
|
$ |
5,530,102 |
|
|
$ |
5,155,047 |
|
|
$ |
5,024,540 |
|
|
|
7.3 |
% |
|
|
10.1 |
% |
Total deposits increased to $5.5 billion at March 31, 2022 compared to $5.2 billion at December 31, 2021. Non-interest-bearing deposits were 41.3% and 41.9% of total deposits at March 31, 2022 and December 31, 2021, respectively.
The increase in the current quarter was primarily due to:
Partially offset by:
Total borrowings and other liabilities were $515.9 million at March 31, 2022, a decrease of $188.9 million from $704.7 million at December 31, 2021, primarily driven by a $210.0 million decrease in FHLB advances.
Stockholders’ Equity
Total stockholders’ equity was $788.7 million at March 31, 2022, a decrease of $47.7 million from $836.4 million at December 31, 2021. The decrease was primarily due to an increase in accumulated other comprehensive loss,
Byline Bancorp, Inc.
Page 9 of 16
the repurchase of shares of our common stock under the Company's stock repurchase program, and the redemption of the Series B Preferred Stock. These were offset by an increase to retained earnings.
Under its stock repurchase program, the Company repurchased an aggregate 282,819 shares of its common stock at an average price of $26.84 per share during the first quarter of 2022.
The following table presents actual regulatory capital dollar amounts and ratios of the Company and Byline Bank as of March 31, 2022:
|
|
Actual |
|
|
Minimum Capital |
|
|
Required to be |
|
|||||||||||||||
March 31, 2022 |
|
Amount |
|
|
Ratio |
|
|
Amount |
|
|
Ratio |
|
|
Amount |
|
|
Ratio |
|
||||||
Total capital to risk weighted assets: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Company |
|
$ |
837,188 |
|
|
|
13.72 |
% |
|
$ |
488,018 |
|
|
|
8.00 |
% |
|
N/A |
|
|
N/A |
|
||
Bank |
|
|
779,153 |
|
|
|
12.81 |
% |
|
|
486,427 |
|
|
|
8.00 |
% |
|
$ |
608,034 |
|
|
|
10.00 |
% |
Tier 1 capital to risk weighted assets: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Company |
|
$ |
700,728 |
|
|
|
11.49 |
% |
|
$ |
366,013 |
|
|
|
6.00 |
% |
|
N/A |
|
|
N/A |
|
||
Bank |
|
$ |
717,693 |
|
|
|
11.80 |
% |
|
|
364,820 |
|
|
|
6.00 |
% |
|
$ |
486,427 |
|
|
|
8.00 |
% |
Common Equity Tier 1 (CET1) to |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Company |
|
$ |
655,728 |
|
|
|
10.75 |
% |
|
$ |
274,510 |
|
|
|
4.50 |
% |
|
N/A |
|
|
N/A |
|
||
Bank |
|
|
717,693 |
|
|
|
11.80 |
% |
|
|
273,615 |
|
|
|
4.50 |
% |
|
$ |
395,222 |
|
|
|
6.50 |
% |
Tier 1 capital to average assets: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Company |
|
$ |
700,728 |
|
|
|
10.70 |
% |
|
$ |
261,913 |
|
|
|
4.00 |
% |
|
N/A |
|
|
N/A |
|
||
Bank |
|
|
717,693 |
|
|
|
10.97 |
% |
|
$ |
261,750 |
|
|
|
4.00 |
% |
|
$ |
327,187 |
|
|
|
5.00 |
% |
Capital ratios for the period presented are based on the Basel III regulatory capital framework as applied to our current business and operations, and are subject to, among other things, completion and filing of our regulatory reports and ongoing regulatory review and implementation guidance.
Conference Call, Webcast and Slide Presentation
We will host a conference call and webcast at 9:00 a.m. Central Time on Friday, April 29, 2022 to discuss our quarterly financial results. Analysts and investors may participate in the question-and-answer session. The call can be accessed via telephone at (844) 200-6205; passcode 864125. A recorded replay can be accessed through May 13, 2022 by dialing (866) 813-9403; passcode: 091877.
A slide presentation relating to our first quarter 2022 results will be accessible prior to the conference call. The slide presentation and webcast of the conference call can be accessed on our investor relations website at www.bylinebancorp.com.
About Byline Bancorp, Inc.
Headquartered in Chicago, Byline Bancorp, Inc. is the parent company for Byline Bank, a full service commercial bank serving small- and medium-sized businesses, financial sponsors, and consumers. Byline Bank has approximately $6.8 billion in assets and operates more than 30 full service branch locations throughout the Chicago and Milwaukee metropolitan areas. Byline Bank offers a broad range of commercial and retail banking products and services including small ticket equipment leasing solutions and is one of the top five 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
Byline Bancorp, Inc.
Page 10 of 16
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, 2021. Any forward-looking statement speaks only as of the date on which it is made, and Byline undertakes no obligation to update any forward-looking statement, whether to reflect events or circumstances after the date on which the statement is made, to reflect new information or the occurrence of unanticipated events, or otherwise unless required under the federal securities laws.
Contacts:
Investors: |
Media: |
Brooks Rennie |
Erin O’Neill |
Investor Relations Director |
Marketing Director |
312-660-5805 |
773-475-2901 |
|
|
Byline Bancorp, Inc.
Page 11 of 16
BYLINE BANCORP, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION (unaudited)
|
|
March 31, |
|
|
December 31, |
|
|
September 30, |
|
|
June 30, |
|
|
March 31, |
|
|||||
(dollars in thousands) |
|
2022 |
|
|
2021 |
|
|
2021 |
|
|
2021 |
|
|
2021 |
|
|||||
ASSETS |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Cash and due from banks |
|
$ |
48,015 |
|
|
$ |
35,247 |
|
|
$ |
46,900 |
|
|
$ |
50,558 |
|
|
$ |
47,101 |
|
Interest bearing deposits with other banks |
|
|
105,564 |
|
|
|
122,684 |
|
|
|
95,978 |
|
|
|
52,138 |
|
|
|
66,038 |
|
Cash and cash equivalents |
|
|
153,579 |
|
|
|
157,931 |
|
|
|
142,878 |
|
|
|
102,696 |
|
|
|
113,139 |
|
Equity and other securities, at fair value |
|
|
10,677 |
|
|
|
10,578 |
|
|
|
10,299 |
|
|
|
10,575 |
|
|
|
8,557 |
|
Securities available-for-sale, at fair value |
|
|
1,369,368 |
|
|
|
1,454,542 |
|
|
|
1,427,605 |
|
|
|
1,495,789 |
|
|
|
1,675,907 |
|
Securities held-to-maturity, at amortized cost |
|
|
3,882 |
|
|
|
3,885 |
|
|
|
3,887 |
|
|
|
3,890 |
|
|
|
3,892 |
|
Restricted stock, at cost |
|
|
13,977 |
|
|
|
22,002 |
|
|
|
15,927 |
|
|
|
11,927 |
|
|
|
19,057 |
|
Loans held for sale |
|
|
39,520 |
|
|
|
64,460 |
|
|
|
48,372 |
|
|
|
25,046 |
|
|
|
28,584 |
|
Loans and leases: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Loans and leases |
|
|
4,789,068 |
|
|
|
4,537,128 |
|
|
|
4,609,228 |
|
|
|
4,469,457 |
|
|
|
4,454,620 |
|
Allowance for loan and lease losses |
|
|
(59,458 |
) |
|
|
(55,012 |
) |
|
|
(60,598 |
) |
|
|
(61,719 |
) |
|
|
(65,590 |
) |
Net loans and leases |
|
|
4,729,610 |
|
|
|
4,482,116 |
|
|
|
4,548,630 |
|
|
|
4,407,738 |
|
|
|
4,389,030 |
|
Servicing assets, at fair value |
|
|
24,497 |
|
|
|
23,744 |
|
|
|
23,597 |
|
|
|
24,683 |
|
|
|
22,140 |
|
Premises and equipment, net |
|
|
62,281 |
|
|
|
62,548 |
|
|
|
76,995 |
|
|
|
80,482 |
|
|
|
85,182 |
|
Other real estate owned, net |
|
|
2,221 |
|
|
|
2,112 |
|
|
|
3,033 |
|
|
|
4,417 |
|
|
|
5,952 |
|
Goodwill and other intangible assets, net |
|
|
163,962 |
|
|
|
165,558 |
|
|
|
167,296 |
|
|
|
169,034 |
|
|
|
170,882 |
|
Bank-owned life insurance |
|
|
80,604 |
|
|
|
80,039 |
|
|
|
60,992 |
|
|
|
60,628 |
|
|
|
60,258 |
|
Deferred tax assets, net |
|
|
67,335 |
|
|
|
50,329 |
|
|
|
45,165 |
|
|
|
43,127 |
|
|
|
48,662 |
|
Accrued interest receivable and other assets |
|
|
113,123 |
|
|
|
116,328 |
|
|
|
129,775 |
|
|
|
100,570 |
|
|
|
118,883 |
|
Total assets |
|
$ |
6,834,636 |
|
|
$ |
6,696,172 |
|
|
$ |
6,704,451 |
|
|
$ |
6,540,602 |
|
|
$ |
6,750,125 |
|
LIABILITIES AND STOCKHOLDERS’ EQUITY |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
LIABILITIES |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Non-interest-bearing demand deposits |
|
$ |
2,281,612 |
|
|
$ |
2,158,420 |
|
|
$ |
2,117,749 |
|
|
$ |
2,089,455 |
|
|
$ |
2,015,643 |
|
Interest-bearing deposits |
|
|
3,248,490 |
|
|
|
2,996,627 |
|
|
|
3,040,529 |
|
|
|
3,002,740 |
|
|
|
3,008,897 |
|
Total deposits |
|
|
5,530,102 |
|
|
|
5,155,047 |
|
|
|
5,158,278 |
|
|
|
5,092,195 |
|
|
|
5,024,540 |
|
Other borrowings |
|
|
311,450 |
|
|
|
519,723 |
|
|
|
539,119 |
|
|
|
446,836 |
|
|
|
749,719 |
|
Subordinated notes, net |
|
|
73,560 |
|
|
|
73,517 |
|
|
|
73,473 |
|
|
|
73,429 |
|
|
|
73,386 |
|
Junior subordinated debentures issued to |
|
|
37,011 |
|
|
|
36,906 |
|
|
|
36,796 |
|
|
|
36,682 |
|
|
|
36,565 |
|
Accrued expenses and other liabilities |
|
|
93,842 |
|
|
|
74,597 |
|
|
|
72,367 |
|
|
|
74,387 |
|
|
|
72,120 |
|
Total liabilities |
|
|
6,045,965 |
|
|
|
5,859,790 |
|
|
|
5,880,033 |
|
|
|
5,723,529 |
|
|
|
5,956,330 |
|
STOCKHOLDERS’ EQUITY |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Preferred stock |
|
|
— |
|
|
|
10,438 |
|
|
|
10,438 |
|
|
|
10,438 |
|
|
|
10,438 |
|
Common stock |
|
|
388 |
|
|
|
387 |
|
|
|
386 |
|
|
|
385 |
|
|
|
385 |
|
Additional paid-in capital |
|
|
595,006 |
|
|
|
593,753 |
|
|
|
592,192 |
|
|
|
590,422 |
|
|
|
589,209 |
|
Retained earnings |
|
|
290,397 |
|
|
|
271,676 |
|
|
|
258,077 |
|
|
|
236,363 |
|
|
|
210,385 |
|
Treasury stock |
|
|
(40,732 |
) |
|
|
(31,570 |
) |
|
|
(31,161 |
) |
|
|
(20,712 |
) |
|
|
(8,275 |
) |
Accumulated other comprehensive income |
|
|
(56,388 |
) |
|
|
(8,302 |
) |
|
|
(5,514 |
) |
|
|
177 |
|
|
|
(8,347 |
) |
Total stockholders’ equity |
|
|
788,671 |
|
|
|
836,382 |
|
|
|
824,418 |
|
|
|
817,073 |
|
|
|
793,795 |
|
Total liabilities and stockholders’ equity |
|
$ |
6,834,636 |
|
|
$ |
6,696,172 |
|
|
$ |
6,704,451 |
|
|
$ |
6,540,602 |
|
|
$ |
6,750,125 |
|
Byline Bancorp, Inc.
Page 12 of 16
BYLINE BANCORP, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS (unaudited)
|
|
Three Months Ended |
|
|||||||||||||||||
|
|
March 31, |
|
|
December 31, |
|
|
September 30, |
|
|
June 30, |
|
|
March 31, |
|
|||||
(dollars in thousands, except per share data) |
|
2022 |
|
|
2021 |
|
|
2021 |
|
|
2021 |
|
|
2021 |
|
|||||
INTEREST AND DIVIDEND INCOME |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Interest and fees on loans and leases |
|
$ |
55,426 |
|
|
$ |
58,570 |
|
|
$ |
56,291 |
|
|
$ |
54,324 |
|
|
$ |
53,808 |
|
Interest on securities |
|
|
6,155 |
|
|
|
5,619 |
|
|
|
5,534 |
|
|
|
6,359 |
|
|
|
6,089 |
|
Other interest and dividend income |
|
|
237 |
|
|
|
495 |
|
|
|
947 |
|
|
|
628 |
|
|
|
262 |
|
Total interest and dividend income |
|
|
61,818 |
|
|
|
64,684 |
|
|
|
62,772 |
|
|
|
61,311 |
|
|
|
60,159 |
|
INTEREST EXPENSE |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Deposits |
|
|
1,087 |
|
|
|
1,037 |
|
|
|
986 |
|
|
|
1,058 |
|
|
|
1,421 |
|
Other borrowings |
|
|
395 |
|
|
|
330 |
|
|
|
349 |
|
|
|
482 |
|
|
|
502 |
|
Subordinated notes and debentures |
|
|
1,600 |
|
|
|
1,589 |
|
|
|
1,592 |
|
|
|
1,597 |
|
|
|
1,596 |
|
Total interest expense |
|
|
3,082 |
|
|
|
2,956 |
|
|
|
2,927 |
|
|
|
3,137 |
|
|
|
3,519 |
|
Net interest income |
|
|
58,736 |
|
|
|
61,728 |
|
|
|
59,845 |
|
|
|
58,174 |
|
|
|
56,640 |
|
PROVISION/(RECAPTURE) FOR LOAN |
|
|
4,995 |
|
|
|
(1,293 |
) |
|
|
352 |
|
|
|
(1,969 |
) |
|
|
4,367 |
|
Net interest income after provision/(recapture) |
|
|
53,741 |
|
|
|
63,021 |
|
|
|
59,493 |
|
|
|
60,143 |
|
|
|
52,273 |
|
NON-INTEREST INCOME |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Fees and service charges on deposits |
|
|
1,884 |
|
|
|
1,955 |
|
|
|
1,867 |
|
|
|
1,768 |
|
|
|
1,664 |
|
Loan servicing revenue |
|
|
3,380 |
|
|
|
3,392 |
|
|
|
3,344 |
|
|
|
3,188 |
|
|
|
2,769 |
|
Loan servicing asset revaluation |
|
|
(1,231 |
) |
|
|
(2,510 |
) |
|
|
(2,650 |
) |
|
|
7 |
|
|
|
(1,505 |
) |
ATM and interchange fees |
|
|
1,049 |
|
|
|
1,219 |
|
|
|
1,201 |
|
|
|
1,044 |
|
|
|
1,012 |
|
Net realized gains (losses) on securities available-for-sale |
|
|
— |
|
|
|
(21 |
) |
|
|
130 |
|
|
|
(136 |
) |
|
|
1,462 |
|
Change in fair value of equity securities, net |
|
|
(151 |
) |
|
|
(98 |
) |
|
|
(275 |
) |
|
|
517 |
|
|
|
(206 |
) |
Net gains on sales of loans |
|
|
10,827 |
|
|
|
12,924 |
|
|
|
12,761 |
|
|
|
12,270 |
|
|
|
8,319 |
|
Wealth management and trust income |
|
|
1,048 |
|
|
|
764 |
|
|
|
815 |
|
|
|
722 |
|
|
|
768 |
|
Other non-interest income |
|
|
2,620 |
|
|
|
1,389 |
|
|
|
1,302 |
|
|
|
1,622 |
|
|
|
1,459 |
|
Total non-interest income |
|
|
19,426 |
|
|
|
19,014 |
|
|
|
18,495 |
|
|
|
21,002 |
|
|
|
15,742 |
|
NON-INTEREST EXPENSE |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Salaries and employee benefits |
|
|
28,959 |
|
|
|
28,850 |
|
|
|
25,978 |
|
|
|
24,588 |
|
|
|
21,806 |
|
Occupancy and equipment expense, net |
|
|
5,128 |
|
|
|
4,995 |
|
|
|
4,982 |
|
|
|
4,856 |
|
|
|
5,779 |
|
Impairment charge on assets held for sale |
|
|
— |
|
|
|
8,351 |
|
|
|
1,434 |
|
|
|
1,943 |
|
|
|
604 |
|
Loan and lease related expenses |
|
|
(891 |
) |
|
|
2,328 |
|
|
|
1,175 |
|
|
|
1,503 |
|
|
|
951 |
|
Legal, audit, and other professional fees |
|
|
2,600 |
|
|
|
2,376 |
|
|
|
2,710 |
|
|
|
2,898 |
|
|
|
2,214 |
|
Data processing |
|
|
3,186 |
|
|
|
3,070 |
|
|
|
3,108 |
|
|
|
2,847 |
|
|
|
2,755 |
|
Net loss recognized on other real estate |
|
|
54 |
|
|
|
26 |
|
|
|
42 |
|
|
|
389 |
|
|
|
621 |
|
Other intangible assets amortization expense |
|
|
1,596 |
|
|
|
1,738 |
|
|
|
1,738 |
|
|
|
1,848 |
|
|
|
1,749 |
|
Other non-interest expense |
|
|
3,923 |
|
|
|
7,234 |
|
|
|
3,013 |
|
|
|
2,109 |
|
|
|
2,363 |
|
Total non-interest expense |
|
|
44,555 |
|
|
|
58,968 |
|
|
|
44,180 |
|
|
|
42,981 |
|
|
|
38,842 |
|
INCOME BEFORE PROVISION FOR INCOME TAXES |
|
|
28,612 |
|
|
|
23,067 |
|
|
|
33,808 |
|
|
|
38,164 |
|
|
|
29,173 |
|
PROVISION FOR INCOME TAXES |
|
|
6,301 |
|
|
|
5,878 |
|
|
|
8,502 |
|
|
|
9,672 |
|
|
|
7,375 |
|
NET INCOME |
|
|
22,311 |
|
|
|
17,189 |
|
|
|
25,306 |
|
|
|
28,492 |
|
|
|
21,798 |
|
Dividends on preferred shares |
|
|
196 |
|
|
|
196 |
|
|
|
196 |
|
|
|
195 |
|
|
|
196 |
|
INCOME AVAILABLE TO COMMON STOCKHOLDERS |
|
$ |
22,115 |
|
|
$ |
16,993 |
|
|
$ |
25,110 |
|
|
$ |
28,297 |
|
|
$ |
21,602 |
|
EARNINGS PER COMMON SHARE |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Basic |
|
$ |
0.60 |
|
|
$ |
0.46 |
|
|
$ |
0.68 |
|
|
$ |
0.75 |
|
|
$ |
0.57 |
|
Diluted |
|
$ |
0.58 |
|
|
$ |
0.45 |
|
|
$ |
0.66 |
|
|
$ |
0.73 |
|
|
$ |
0.56 |
|
Byline Bancorp, Inc.
Page 13 of 16
BYLINE BANCORP, INC. AND SUBSIDIARIES
SELECTED FINANCIAL DATA (unaudited)
|
As of or For the Three Months Ended |
|
|||||||||||||||||
(dollars in thousands, except share |
March 31, |
|
|
December 31, |
|
|
September 30, |
|
|
June 30, |
|
|
March 31, |
|
|||||
and per share data) |
2022 |
|
|
2021 |
|
|
2021 |
|
|
2021 |
|
|
2021 |
|
|||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Earnings per Common Share |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Basic earnings per common share |
$ |
0.60 |
|
|
$ |
0.46 |
|
|
$ |
0.68 |
|
|
$ |
0.75 |
|
|
$ |
0.57 |
|
Diluted earnings per common share |
$ |
0.58 |
|
|
$ |
0.45 |
|
|
$ |
0.66 |
|
|
$ |
0.73 |
|
|
$ |
0.56 |
|
Adjusted diluted earnings per common |
$ |
0.58 |
|
|
$ |
0.69 |
|
|
$ |
0.69 |
|
|
$ |
0.77 |
|
|
$ |
0.57 |
|
Weighted average common shares |
|
37,123,161 |
|
|
|
37,124,176 |
|
|
|
37,200,778 |
|
|
|
37,965,658 |
|
|
|
38,164,201 |
|
Weighted average common shares |
|
38,042,822 |
|
|
|
37,999,401 |
|
|
|
38,018,301 |
|
|
|
38,696,036 |
|
|
|
38,915,482 |
|
Common shares outstanding |
|
37,811,582 |
|
|
|
37,713,903 |
|
|
|
37,690,087 |
|
|
|
38,094,972 |
|
|
|
38,641,851 |
|
Cash dividends per common share |
$ |
0.09 |
|
|
$ |
0.09 |
|
|
$ |
0.09 |
|
|
$ |
0.06 |
|
|
$ |
0.06 |
|
Dividend payout ratio on |
|
15.52 |
% |
|
|
20.00 |
% |
|
|
13.64 |
% |
|
|
8.22 |
% |
|
|
10.71 |
% |
Tangible book value per |
$ |
16.52 |
|
|
$ |
17.51 |
|
|
$ |
17.16 |
|
|
$ |
16.74 |
|
|
$ |
15.85 |
|
Key Ratios and Performance Metrics |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Net interest margin, fully taxable |
|
3.82 |
% |
|
|
3.97 |
% |
|
|
3.92 |
% |
|
|
3.76 |
% |
|
|
3.78 |
% |
Average cost of deposits |
|
0.08 |
% |
|
|
0.08 |
% |
|
|
0.08 |
% |
|
|
0.08 |
% |
|
|
0.12 |
% |
Efficiency ratio(2) |
|
54.96 |
% |
|
|
70.88 |
% |
|
|
54.18 |
% |
|
|
51.95 |
% |
|
|
51.25 |
% |
Adjusted efficiency ratio(1)(2)(3) |
|
54.96 |
% |
|
|
55.46 |
% |
|
|
52.35 |
% |
|
|
49.50 |
% |
|
|
50.41 |
% |
Non-interest expense to average assets |
|
2.69 |
% |
|
|
3.49 |
% |
|
|
2.67 |
% |
|
|
2.57 |
% |
|
|
2.39 |
% |
Adjusted non-interest expense to |
|
2.69 |
% |
|
|
2.76 |
% |
|
|
2.58 |
% |
|
|
2.45 |
% |
|
|
2.35 |
% |
Return on average stockholders' equity |
|
10.87 |
% |
|
|
8.13 |
% |
|
|
12.19 |
% |
|
|
14.10 |
% |
|
|
10.96 |
% |
Adjusted return on average |
|
10.87 |
% |
|
|
12.42 |
% |
|
|
12.69 |
% |
|
|
14.80 |
% |
|
|
11.18 |
% |
Return on average assets |
|
1.35 |
% |
|
|
1.02 |
% |
|
|
1.53 |
% |
|
|
1.70 |
% |
|
|
1.34 |
% |
Adjusted return on average assets(1)(3)(4) |
|
1.35 |
% |
|
|
1.56 |
% |
|
|
1.59 |
% |
|
|
1.78 |
% |
|
|
1.37 |
% |
Non-interest income to total |
|
24.85 |
% |
|
|
23.55 |
% |
|
|
23.61 |
% |
|
|
26.53 |
% |
|
|
21.75 |
% |
Pre-tax pre-provision return on |
|
2.03 |
% |
|
|
1.29 |
% |
|
|
2.07 |
% |
|
|
2.16 |
% |
|
|
2.06 |
% |
Adjusted pre-tax pre-provision return |
|
2.03 |
% |
|
|
2.03 |
% |
|
|
2.15 |
% |
|
|
2.28 |
% |
|
|
2.10 |
% |
Return on average tangible common |
|
14.36 |
% |
|
|
10.94 |
% |
|
|
16.22 |
% |
|
|
18.87 |
% |
|
|
14.86 |
% |
Adjusted return on average tangible |
|
14.36 |
% |
|
|
16.38 |
% |
|
|
16.86 |
% |
|
|
19.77 |
% |
|
|
15.15 |
% |
Non-interest-bearing deposits to |
|
41.26 |
% |
|
|
41.87 |
% |
|
|
41.06 |
% |
|
|
41.03 |
% |
|
|
40.12 |
% |
Loans and leases held for sale and |
|
87.31 |
% |
|
|
89.26 |
% |
|
|
90.29 |
% |
|
|
88.26 |
% |
|
|
89.23 |
% |
Deposits to total liabilities |
|
91.47 |
% |
|
|
87.97 |
% |
|
|
87.73 |
% |
|
|
88.97 |
% |
|
|
84.36 |
% |
Deposits per branch |
$ |
125,684 |
|
|
$ |
117,160 |
|
|
$ |
117,234 |
|
|
$ |
115,732 |
|
|
$ |
109,229 |
|
Asset Quality Ratios |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Non-performing loans and leases to |
|
0.42 |
% |
|
|
0.51 |
% |
|
|
0.75 |
% |
|
|
0.79 |
% |
|
|
0.83 |
% |
ALLL to total loans and leases held for |
|
1.24 |
% |
|
|
1.21 |
% |
|
|
1.31 |
% |
|
|
1.38 |
% |
|
|
1.47 |
% |
Net charge-offs to average total loans |
|
0.05 |
% |
|
|
0.37 |
% |
|
|
0.13 |
% |
|
|
0.17 |
% |
|
|
0.47 |
% |
Acquisition accounting adjustments(4) |
$ |
3,364 |
|
|
$ |
4,769 |
|
|
$ |
6,327 |
|
|
$ |
9,393 |
|
|
$ |
10,424 |
|
Capital Ratios |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Common equity to total assets |
|
11.54 |
% |
|
|
12.33 |
% |
|
|
12.14 |
% |
|
|
12.33 |
% |
|
|
11.61 |
% |
Tangible common equity to |
|
9.36 |
% |
|
|
10.11 |
% |
|
|
9.89 |
% |
|
|
10.01 |
% |
|
|
9.31 |
% |
Leverage ratio |
|
10.70 |
% |
|
|
10.89 |
% |
|
|
11.21 |
% |
|
|
10.82 |
% |
|
|
10.93 |
% |
Common equity tier 1 capital ratio |
|
10.75 |
% |
|
|
11.39 |
% |
|
|
11.32 |
% |
|
|
11.97 |
% |
|
|
12.09 |
% |
Tier 1 capital ratio |
|
11.49 |
% |
|
|
12.37 |
% |
|
|
12.32 |
% |
|
|
13.05 |
% |
|
|
13.20 |
% |
Total capital ratio |
|
13.72 |
% |
|
|
14.70 |
% |
|
|
14.78 |
% |
|
|
15.74 |
% |
|
|
15.96 |
% |
(1) Represents a non-GAAP financial measure. See “Reconciliation of non-GAAP Financial Measures” for a reconciliation of our non-GAAP measures to the most directly comparable GAAP financial measure.
(2) Represents non-interest expense less amortization of intangible assets divided by net interest income and non-interest income.
(3) Calculation excludes impairment charges.
(4) Represents the remaining net unaccreted discount as a result of applying the fair value adjustment at the time of the business combination on acquired loans.
(5) Interest income and rates include the effects of a tax equivalent adjustment to adjust tax exempt investment income on tax exempt investment securities to a fully taxable basis, assuming a federal income tax rate of 21%.
Byline Bancorp, Inc.
Page 14 of 16
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 |
|
|||||||||||||||||
|
|
March 31, |
|
|
December 31, |
|
|
September 30, |
|
|
June 30, |
|
|
March 31, |
|
|||||
(dollars in thousands, except per share data) |
|
2022 |
|
|
2021 |
|
|
2021 |
|
|
2021 |
|
|
2021 |
|
|||||
Net income and earnings per share |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Reported Net Income |
|
$ |
22,311 |
|
|
$ |
17,189 |
|
|
$ |
25,306 |
|
|
$ |
28,492 |
|
|
$ |
21,798 |
|
Significant items: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Impairment charges on assets held for sale |
|
|
— |
|
|
|
12,449 |
|
|
|
1,434 |
|
|
|
1,943 |
|
|
|
604 |
|
Tax benefit |
|
|
— |
|
|
|
(3,377 |
) |
|
|
(390 |
) |
|
|
(530 |
) |
|
|
(165 |
) |
Adjusted Net Income |
|
$ |
22,311 |
|
|
$ |
26,261 |
|
|
$ |
26,350 |
|
|
$ |
29,905 |
|
|
$ |
22,237 |
|
Reported Diluted Earnings per Share |
|
$ |
0.58 |
|
|
$ |
0.45 |
|
|
$ |
0.66 |
|
|
$ |
0.73 |
|
|
$ |
0.56 |
|
Significant items: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Impairment charges on assets held for sale |
|
|
— |
|
|
|
0.33 |
|
|
|
0.04 |
|
|
|
0.05 |
|
|
|
0.02 |
|
Tax benefit |
|
|
— |
|
|
|
(0.09 |
) |
|
|
(0.01 |
) |
|
|
(0.01 |
) |
|
|
(0.01 |
) |
Adjusted Diluted Earnings per Share |
|
$ |
0.58 |
|
|
$ |
0.69 |
|
|
$ |
0.69 |
|
|
$ |
0.77 |
|
|
$ |
0.57 |
|
Byline Bancorp, Inc.
Page 15 of 16
BYLINE BANCORP, INC. AND SUBSIDIARIES
RECONCILIATION OF NON-GAAP FINANCIAL MEASURES (continued) (unaudited)
|
|
As of or For the Three Months Ended |
|
|||||||||||||||||
(dollars in thousands, except per share data, |
|
March 31, |
|
|
December 31, |
|
|
September 30, |
|
|
June 30, |
|
|
March 31, |
|
|||||
ratios annualized, where applicable) |
|
2022 |
|
|
2021 |
|
|
2021 |
|
|
2021 |
|
|
2021 |
|
|||||
Adjusted non-interest expense: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Non-interest expense |
|
$ |
44,555 |
|
|
$ |
58,968 |
|
|
$ |
44,180 |
|
|
$ |
42,981 |
|
|
$ |
38,842 |
|
Less: Significant items |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Impairment charges on assets held for sale |
|
|
— |
|
|
|
12,449 |
|
|
|
1,434 |
|
|
|
1,943 |
|
|
|
604 |
|
Adjusted non-interest expense |
|
$ |
44,555 |
|
|
$ |
46,519 |
|
|
$ |
42,746 |
|
|
$ |
41,038 |
|
|
$ |
38,238 |
|
Adjusted non-interest expense excluding |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Adjusted non-interest expense |
|
$ |
44,555 |
|
|
$ |
46,519 |
|
|
$ |
42,746 |
|
|
$ |
41,038 |
|
|
$ |
38,238 |
|
Less: Amortization of intangible assets |
|
|
1,596 |
|
|
|
1,738 |
|
|
|
1,738 |
|
|
|
1,848 |
|
|
|
1,749 |
|
Adjusted non-interest expense excluding |
|
$ |
42,959 |
|
|
$ |
44,781 |
|
|
$ |
41,008 |
|
|
$ |
39,190 |
|
|
$ |
36,489 |
|
Pre-tax pre-provision net income: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Pre-tax income |
|
$ |
28,612 |
|
|
$ |
23,067 |
|
|
$ |
33,808 |
|
|
$ |
38,164 |
|
|
$ |
29,173 |
|
Add: Provision/(recapture) for loan |
|
|
4,995 |
|
|
|
(1,293 |
) |
|
|
352 |
|
|
|
(1,969 |
) |
|
|
4,367 |
|
Pre-tax pre-provision net income |
|
$ |
33,607 |
|
|
$ |
21,774 |
|
|
$ |
34,160 |
|
|
$ |
36,195 |
|
|
$ |
33,540 |
|
Adjusted pre-tax pre-provision net income: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Pre-tax pre-provision net income |
|
$ |
33,607 |
|
|
$ |
21,774 |
|
|
$ |
34,160 |
|
|
$ |
36,195 |
|
|
$ |
33,540 |
|
Impairment charges on assets held for sale |
|
|
— |
|
|
|
12,449 |
|
|
|
1,434 |
|
|
|
1,943 |
|
|
|
604 |
|
Adjusted pre-tax pre-provision net income |
|
$ |
33,607 |
|
|
$ |
34,223 |
|
|
$ |
35,594 |
|
|
$ |
38,138 |
|
|
$ |
34,144 |
|
Tax equivalent net interest income |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Net interest income |
|
$ |
58,736 |
|
|
$ |
61,728 |
|
|
$ |
59,845 |
|
|
$ |
58,174 |
|
|
$ |
56,640 |
|
Add: Tax-equivalent adjustment |
|
|
236 |
|
|
|
256 |
|
|
|
264 |
|
|
|
269 |
|
|
|
250 |
|
Net interest income, fully taxable equivalent |
|
$ |
58,972 |
|
|
$ |
61,984 |
|
|
$ |
60,109 |
|
|
$ |
58,443 |
|
|
$ |
56,890 |
|
Total revenue: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Net interest income |
|
$ |
58,736 |
|
|
$ |
61,728 |
|
|
$ |
59,845 |
|
|
$ |
58,174 |
|
|
$ |
56,640 |
|
Add: Non-interest income |
|
|
19,426 |
|
|
|
19,014 |
|
|
|
18,495 |
|
|
|
21,002 |
|
|
|
15,742 |
|
Total revenue |
|
$ |
78,162 |
|
|
$ |
80,742 |
|
|
$ |
78,340 |
|
|
$ |
79,176 |
|
|
$ |
72,382 |
|
Tangible common stockholders' equity: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Total stockholders' equity |
|
$ |
788,671 |
|
|
$ |
836,382 |
|
|
$ |
824,418 |
|
|
$ |
817,073 |
|
|
$ |
793,795 |
|
Less: Preferred stock |
|
|
— |
|
|
|
10,438 |
|
|
|
10,438 |
|
|
|
10,438 |
|
|
|
10,438 |
|
Less: Goodwill and other intangibles |
|
|
163,962 |
|
|
|
165,558 |
|
|
|
167,296 |
|
|
|
169,034 |
|
|
|
170,882 |
|
Tangible common stockholders' equity |
|
$ |
624,709 |
|
|
$ |
660,386 |
|
|
$ |
646,684 |
|
|
$ |
637,601 |
|
|
$ |
612,475 |
|
Tangible assets: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Total assets |
|
$ |
6,834,636 |
|
|
$ |
6,696,172 |
|
|
$ |
6,704,451 |
|
|
$ |
6,540,602 |
|
|
$ |
6,750,125 |
|
Less: Goodwill and other intangibles |
|
|
163,962 |
|
|
|
165,558 |
|
|
|
167,296 |
|
|
|
169,034 |
|
|
|
170,882 |
|
Tangible assets |
|
$ |
6,670,674 |
|
|
$ |
6,530,614 |
|
|
$ |
6,537,155 |
|
|
$ |
6,371,568 |
|
|
$ |
6,579,243 |
|
Average tangible common stockholders' |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Average total stockholders' equity |
|
$ |
832,161 |
|
|
$ |
838,975 |
|
|
$ |
823,754 |
|
|
$ |
810,490 |
|
|
$ |
806,452 |
|
Less: Average preferred stock |
|
|
9,974 |
|
|
|
10,438 |
|
|
|
10,438 |
|
|
|
10,438 |
|
|
|
10,438 |
|
Less: Average goodwill and other |
|
|
164,837 |
|
|
|
166,396 |
|
|
|
168,140 |
|
|
|
169,906 |
|
|
|
171,795 |
|
Average tangible common stockholders' |
|
$ |
657,350 |
|
|
$ |
662,141 |
|
|
$ |
645,176 |
|
|
$ |
630,146 |
|
|
$ |
624,219 |
|
Average tangible assets: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Average total assets |
|
$ |
6,705,986 |
|
|
$ |
6,699,069 |
|
|
$ |
6,560,868 |
|
|
$ |
6,720,492 |
|
|
$ |
6,587,765 |
|
Less: Average goodwill and other |
|
|
164,837 |
|
|
|
166,396 |
|
|
|
168,140 |
|
|
|
169,906 |
|
|
|
171,795 |
|
Average tangible assets |
|
$ |
6,541,149 |
|
|
$ |
6,532,673 |
|
|
$ |
6,392,728 |
|
|
$ |
6,550,586 |
|
|
$ |
6,415,970 |
|
Tangible net income available to common |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Net income available to common |
|
$ |
22,115 |
|
|
$ |
16,993 |
|
|
$ |
25,110 |
|
|
$ |
28,297 |
|
|
$ |
21,602 |
|
Add: After-tax intangible asset amortization |
|
|
1,163 |
|
|
|
1,266 |
|
|
|
1,265 |
|
|
|
1,344 |
|
|
|
1,272 |
|
Tangible net income available to common |
|
$ |
23,278 |
|
|
$ |
18,259 |
|
|
$ |
26,375 |
|
|
$ |
29,641 |
|
|
$ |
22,874 |
|
Adjusted tangible net income available |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Tangible net income available to common |
|
$ |
23,278 |
|
|
$ |
18,259 |
|
|
$ |
26,375 |
|
|
$ |
29,641 |
|
|
$ |
22,874 |
|
Impairment charges on assets held for sale |
|
|
— |
|
|
|
12,449 |
|
|
|
1,434 |
|
|
|
1,943 |
|
|
|
604 |
|
Tax benefit on significant items |
|
|
— |
|
|
|
(3,377 |
) |
|
|
(390 |
) |
|
|
(530 |
) |
|
|
(165 |
) |
Adjusted tangible net income available to |
|
$ |
23,278 |
|
|
$ |
27,331 |
|
|
$ |
27,419 |
|
|
$ |
31,054 |
|
|
$ |
23,313 |
|
Byline Bancorp, Inc.
Page 16 of 16
BYLINE BANCORP, INC. AND SUBSIDIARIES
RECONCILIATION OF NON-GAAP FINANCIAL MEASURES (continued) (unaudited)
|
|
As of or For the Three Months Ended |
|
|||||||||||||||||
(dollars in thousands, except share and per share |
|
March 31, |
|
|
December 31, |
|
|
September 30, |
|
|
June 30, |
|
|
March 31, |
|
|||||
|
|
2022 |
|
|
2021 |
|
|
2021 |
|
|
2021 |
|
|
2021 |
|
|||||
Pre-tax pre-provision return on average assets: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Pre-tax pre-provision net income |
|
$ |
33,607 |
|
|
$ |
21,774 |
|
|
$ |
34,160 |
|
|
$ |
36,195 |
|
|
$ |
33,540 |
|
Average total assets |
|
|
6,705,986 |
|
|
|
6,699,069 |
|
|
|
6,560,868 |
|
|
|
6,720,492 |
|
|
|
6,587,765 |
|
Pre-tax pre-provision return on average assets |
|
|
2.03 |
% |
|
|
1.29 |
% |
|
|
2.07 |
% |
|
|
2.16 |
% |
|
|
2.06 |
% |
Adjusted pre-tax pre-provision return on average |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Adjusted pre-tax pre-provision net income |
|
$ |
33,607 |
|
|
$ |
34,223 |
|
|
$ |
35,594 |
|
|
$ |
38,138 |
|
|
$ |
34,144 |
|
Average total assets |
|
|
6,705,986 |
|
|
|
6,699,069 |
|
|
|
6,560,868 |
|
|
|
6,720,492 |
|
|
|
6,587,765 |
|
Adjusted pre-tax pre-provision return on average |
|
|
2.03 |
% |
|
|
2.03 |
% |
|
|
2.15 |
% |
|
|
2.28 |
% |
|
|
2.10 |
% |
Net interest margin, fully taxable equivalent |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Net interest income, fully taxable equivalent |
|
$ |
58,972 |
|
|
$ |
61,984 |
|
|
$ |
60,109 |
|
|
$ |
58,443 |
|
|
$ |
56,890 |
|
Total average interest-earning assets |
|
|
6,253,889 |
|
|
|
6,189,762 |
|
|
|
6,076,065 |
|
|
|
6,231,616 |
|
|
|
6,097,712 |
|
Net interest margin, fully taxable equivalent |
|
|
3.82 |
% |
|
|
3.97 |
% |
|
|
3.92 |
% |
|
|
3.76 |
% |
|
|
3.78 |
% |
Non-interest income to total revenues: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Non-interest income |
|
$ |
19,426 |
|
|
$ |
19,014 |
|
|
$ |
18,495 |
|
|
$ |
21,002 |
|
|
$ |
15,742 |
|
Total revenues |
|
|
78,162 |
|
|
|
80,742 |
|
|
|
78,340 |
|
|
|
79,176 |
|
|
|
72,382 |
|
Non-interest income to total revenues |
|
|
24.85 |
% |
|
|
23.55 |
% |
|
|
23.61 |
% |
|
|
26.53 |
% |
|
|
21.75 |
% |
Adjusted non-interest expense to average assets: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Adjusted non-interest expense |
|
$ |
44,555 |
|
|
$ |
46,519 |
|
|
$ |
42,746 |
|
|
$ |
41,038 |
|
|
$ |
38,238 |
|
Average total assets |
|
|
6,705,986 |
|
|
|
6,699,069 |
|
|
|
6,560,868 |
|
|
|
6,720,492 |
|
|
|
6,587,765 |
|
Adjusted non-interest expense to average assets |
|
|
2.69 |
% |
|
|
2.76 |
% |
|
|
2.58 |
% |
|
|
2.45 |
% |
|
|
2.35 |
% |
Adjusted efficiency ratio: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Adjusted non-interest expense excluding |
|
$ |
42,959 |
|
|
$ |
44,781 |
|
|
$ |
41,008 |
|
|
$ |
39,190 |
|
|
$ |
36,489 |
|
Total revenues |
|
|
78,162 |
|
|
|
80,742 |
|
|
|
78,340 |
|
|
|
79,176 |
|
|
|
72,382 |
|
Adjusted efficiency ratio |
|
|
54.96 |
% |
|
|
55.46 |
% |
|
|
52.35 |
% |
|
|
49.50 |
% |
|
|
50.41 |
% |
Adjusted return on average assets: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Adjusted net income |
|
$ |
22,311 |
|
|
$ |
26,261 |
|
|
$ |
26,350 |
|
|
$ |
29,905 |
|
|
$ |
22,237 |
|
Average total assets |
|
|
6,705,986 |
|
|
|
6,699,069 |
|
|
|
6,560,868 |
|
|
|
6,720,492 |
|
|
|
6,587,765 |
|
Adjusted return on average assets |
|
|
1.35 |
% |
|
|
1.56 |
% |
|
|
1.59 |
% |
|
|
1.78 |
% |
|
|
1.37 |
% |
Adjusted return on average stockholders' equity: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Adjusted net income |
|
$ |
22,311 |
|
|
$ |
26,261 |
|
|
$ |
26,350 |
|
|
$ |
29,905 |
|
|
$ |
22,237 |
|
Average stockholders' equity |
|
|
832,161 |
|
|
|
838,975 |
|
|
|
823,754 |
|
|
|
810,490 |
|
|
|
806,452 |
|
Adjusted return on average stockholders' equity |
|
|
10.87 |
% |
|
|
12.42 |
% |
|
|
12.69 |
% |
|
|
14.80 |
% |
|
|
11.18 |
% |
Tangible common equity to tangible assets: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Tangible common equity |
|
$ |
624,709 |
|
|
$ |
660,386 |
|
|
$ |
646,684 |
|
|
$ |
637,601 |
|
|
$ |
612,475 |
|
Tangible assets |
|
|
6,670,674 |
|
|
|
6,530,614 |
|
|
|
6,537,155 |
|
|
|
6,371,568 |
|
|
|
6,579,243 |
|
Tangible common equity to tangible assets |
|
|
9.36 |
% |
|
|
10.11 |
% |
|
|
9.89 |
% |
|
|
10.01 |
% |
|
|
9.31 |
% |
Return on average tangible common stockholders' |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Tangible net income available to common |
|
$ |
23,278 |
|
|
$ |
18,259 |
|
|
$ |
26,375 |
|
|
$ |
29,641 |
|
|
$ |
22,874 |
|
Average tangible common stockholders' equity |
|
|
657,350 |
|
|
|
662,141 |
|
|
|
645,176 |
|
|
|
630,146 |
|
|
|
624,219 |
|
Return on average tangible common |
|
|
14.36 |
% |
|
|
10.94 |
% |
|
|
16.22 |
% |
|
|
18.87 |
% |
|
|
14.86 |
% |
Adjusted return on average tangible common |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Adjusted tangible net income available to |
|
$ |
23,278 |
|
|
$ |
27,331 |
|
|
$ |
27,419 |
|
|
$ |
31,054 |
|
|
$ |
23,313 |
|
Average tangible common stockholders' equity |
|
|
657,350 |
|
|
|
662,141 |
|
|
|
645,176 |
|
|
|
630,146 |
|
|
|
624,219 |
|
Adjusted return on average tangible common |
|
|
14.36 |
% |
|
|
16.38 |
% |
|
|
16.86 |
% |
|
|
19.77 |
% |
|
|
15.15 |
% |
Tangible book value per share: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Tangible common equity |
|
$ |
624,709 |
|
|
$ |
660,386 |
|
|
$ |
646,684 |
|
|
$ |
637,601 |
|
|
$ |
612,475 |
|
Common shares outstanding |
|
|
37,811,582 |
|
|
|
37,713,903 |
|
|
|
37,690,087 |
|
|
|
38,094,972 |
|
|
|
38,641,851 |
|
Tangible book value per share |
|
$ |
16.52 |
|
|
$ |
17.51 |
|
|
$ |
17.16 |
|
|
$ |
16.74 |
|
|
$ |
15.85 |
|
Q1 2022 Conference Call
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, 2021. Any forward-looking statement speaks only as of the date on which it is made, and Byline undertakes no obligation to update any forward-looking statement, whether to reflect events or circumstances after the date on which the statement is made, to reflect new information or the occurrence of unanticipated events, or otherwise unless required under the federal securities laws. 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.
$22.3 million Net Income $0.58 Earnings per Diluted Share 1.35% Return on Average Assets 14.36% Return on Tangible Common Equity(1) $6.8 billion Total Assets 41.3% Non-interest Bearing Deposits 3.82% Net Interest Margin (FTE)(1) 10.75% CET1 Capital Ratio First Quarter 2022 Highlights Balance Sheet Financial Performance Credit Trends Return of Capital Represents a non-GAAP financial measure. See “Non-GAAP Reconciliation” in the appendix. Net income of $22.3 million, or $0.58 per diluted share, compared to $17.2 million, or $0.45 per diluted share, in 4Q21 Pre-Tax Pre-Provision of $33.6 million; Pre-Tax Pre-Provision ROAA(1) of 2.03% improved 74 bps from 1.29% in 4Q21 ROAA of 1.35% and ROTCE(1) of 14.36% Total loans and leases ex. PPP, increased $339.4 million, or 31.2% annualized, linked quarter and increased 23.8% YoY Well balanced growth across all areas of commercial lending Exceptional deposit mix driven by strong inflows of non-interest bearing commercial deposits NIM Net interest margin (FTE)(1) decreased 15 bps to 3.82% from 3.97% in 4Q21 NIM excluding accretion decreased 16 bps to 3.71% from 4Q21, primarily due to lower loan fees and lower volume of PPP forgiveness Deposit costs remained at 8 bps in 1Q22, flat from 4Q21 NPLs (ex. gov gtd) declined from 0.44% to 0.39% in 1Q22 NCOs declined to 5 bps in 1Q22 from 37 bps in 4Q21 ALLL increased 3 bps to 1.24% in 1Q22 from 1.21% in 4Q21 to support growth in the portfolio CET1 and Total Capital ratios remained solid at 10.75% and 13.72% Redeemed Series B Preferred Shares on March 31, 2022 Returned capital to common stockholders through: $0.09 per share stock dividend 282,819 shares of stock repurchased during 1Q22
Loan and Lease Trends ($ in millions) Originations and Payoffs(1) Portfolio by Segment Total Loans & Leases and Average Yield Rate Type(1) Year-over-Year Change, ex. PPP $926.1MM or 24.0% Excludes PPP Loans. Total loans and leases were $4.8 billion at 1Q22, an increase of $227.0 million, or 20.0% annualized $324.9 million in originations in 1Q22 compared to $279.5 million in 4Q21 Payoff activity decreased by $180.0 million from 4Q21 ex. PPP Lease originations for 1Q22 were $60.6 million Net commitments increased $354.2 million from 4Q21 Line usage increased to 54.3% in 1Q22 from 53.4% in 4Q21 Originated portfolio increased $299.5 million, or $387.0 million ex. PPP from 4Q21
Government-Guaranteed Lending ($ in millions) On Balance Sheet SBA 7(a) & USDA Loans A leading SBA 7(a) lender as of March 31, 2022 #5 SBA 7(a) lender in the United States #1 SBA 7(a) lender in Illinois #3 SBA 7(a) lender in Wisconsin Closed $129.1 million loan commitments in 1Q22, up 15.7% YoY SBA 7(a) portfolio up $14.6 million to $478.2 million from 4Q21; ALLL/Unguaranteed loan balance ~ 7.4% Servicing $1.7 billion in government guaranteed loans for investors Serviced Loan Sector Concentration Total SBC Closed Loan Commitments March 31, 2022 $ Balance % of Portfolio(2) Unguaranteed $385.9 8.2% Guaranteed 92.1 1.9% Total SBA 7(a) Loans $478.2 10.1% Unguaranteed $38.9 0.8% Guaranteed 26.3 0.6% Total USDA Loans $65.2 1.4% (1) (1) Represents sectors with less than 5% of the total portfolio. Excludes PPP Loans.
Total deposits increased $375.1 million, or 29.5% annualized, to $5.5 billion Strong inflow of commercial non-interest bearing deposits Deposit mix remains exceptional with non-interest bearing representing 41.3% of total deposits Commercial deposits accounted for 50.7% of total deposits and represents 77.3% of all non-interest bearing deposits Deposit Trends ($ in millions) Average Non-Interest Bearing Deposits Deposit Composition Cost of Interest Bearing Deposits Year-over-Year Change $323.9MM or 16.8%
Net Interest Income and Net Interest Margin Trends Net interest income was $58.7 million, down 4.8% from 4Q21 Net interest margin decreased 15 basis points from 4Q21 to 3.81% Net interest margin decreased QoQ, primarily due to lower loan fees and lower volume of PPP forgiveness Excluding accretion income, net interest margin decreased 16 basis points from 4Q21 $239.7 million of CDs maturing in 2Q22 with an average rate of 0.17% Net Interest Margin Drivers of NIM Change NIM, Yields, and Costs
Well Positioned to Benefit from Higher Rates Variable Rate Floors By Index Variable Rate Impact (60% of Total Loans) ($ in millions) Index In the Money Out Of Money No Floor Total Total % Libor Based $75 $739 $326 $1,140 43% Prime Based 29 566 565 1,160 44% SOFR Based 187 115 10 312 12% Other 3 16 12 31 1% Total $294 $1,436 $913 $2,643 100% Total % 11% 54% 35% 100% ($ in millions) Loan Balance % of Total Balance Cumulative % of Total Balance No Floors / Floors Reached $1,207 46% 46% 1 - 50 bps To Reach Floor 753 29% 75% 51 - 100 bps To Reach Floor 645 24% 99% >100 bps To Reach Floor 38 1% 100% Total $2,643 100% Interest Rate Sensitivity Interest rate risk position remains asset sensitivity 8.5% NII per +100 bps increase in rates(1) 17.4% NII per +200 bps increase in rates(1) +$4-5 million in net interest income per 25 bps in Fed tightening Derivatives $450 million of balance sheet hedges to protect market value risk $488 million in other interest rate derivatives to protect NIM Note: The projections assume immediate upward shift of the yield curve in Year 1. Year 1 ending March 31, 2023. Investment Portfolio $1.4 billion portfolio (~99% Available for Sale); duration: 5.5 years 1Q22 cash and securities / assets 22.5% Liquidity $2.2 billion of available liquidity Loans and leases to deposits remains stable at 87.3%
Total Non-Interest Income Non-Interest Income Trends ($ in millions) Non-interest income was $19.4 million, up 2.2% from 4Q21 $1.2 million increase in other non-interest income due to swap income Wealth management fees increased $284,000, or 37.3% linked quarter and $280,000, or 36.5% year-over-year Volume Sold and Average Net Premiums Net Gains on Sales of Loans Government Guaranteed Loan Sales $102.3 million of guaranteed loans sold in 1Q22, compared to $113.9 million in 4Q21 Loans held for sale decreased to $39.5 million in 1Q22 from $64.5 million in 4Q21
Non-Interest Expense Trends ($ in millions) Non-interest expenses decreased to $44.6 million from $59.0 million in 4Q21, primarily attributable to: $12.4 million decrease in asset impairment charges, which were taken during 4Q21 due to branch consolidations and our real estate strategy $3.2 million decrease in loan and leases related expenses, mainly due to the recapture of government guaranteed loan expenses Efficiency ratio of 54.96% for 1Q22 improved from 70.88% in 4Q21; Adjusted efficiency ratio(1) of 54.96% for 1Q22 improved from 55.46% in 4Q21 Efficiency Ratio Non-Interest Expense (1) Represents a non-GAAP financial measure. See “Non-GAAP Reconciliation” in the appendix.
Asset Quality Trends ($ in millions) NPLs / Total Loans & Leases Loss Absorbency 1.24% 1.32% Net Charge-offs Non-performing assets to total assets declined to 0.33% in 1Q22 from 0.38% in 4Q21 NPLs / total loans and leases decreased 9 bps to 0.42% in 1Q22 from 0.51% in 4Q21 NCOs / average loans and leases were 5 bps in 1Q22, down from 37 bps in 4Q21 ALLL + AAA / loans and leases ex. PPP was 1.32% in 1Q22 compared to 1.35% in 4Q21 Allowance for loan and lease losses as a percentage of non-performing loans and leases increased to 293.23% versus 237.84% in the prior quarter 1.21% 1.35%
Project Sox Offer Migration Strong Capital Position and Focus on Return on Capital Capital Ratios Return on Average Tangible Common Equity (1) Tangible Book Value per Share ($) (1) (1) Repurchased 282,819 shares of common stock during 1Q22 at a cost of $7.6 million Declared common stock dividend of $0.09 per share in 1Q22 Dividend Yield: 1.35% Dividend payout ratio: 15.52% Total Payout (Dividend & Share Rep.) 49.7% YTD (1)(2) Represents a non-GAAP financial measure. See “Non-GAAP Reconciliation” in the appendix. Calculation excludes impairment charges, merger-related expenses. Capital Returns to Stockholders
2022 Strategic Priorities and Near-Term Outlook Commercial banking focus through organic loan, lease and deposit growth High single digit loan growth for 2022 Investing in digital capabilities and automation Online deposit account opening for businesses - second half of 2022 / nCino loan origination enhancements Strategic M&A opportunities and team lift-outs with attractive metrics and return profile Continue the return of capital to stockholders Continue to identify opportunities to improve operating leverage Six branches consolidated in April 2022 Achieve enhanced profitability metrics Driven by increasing earning asset mix and well positioned for rising interest rates
Appendix
As of or For the Three Months Ended (dollars in thousands, except per share data) March 31, December 31, September 30, June 30, March 31, 2022 2021 2021 2021 2021 Income Statement Net interest income $ 58,736 $ 61,728 $ 59,845 $ 58,174 $ 56,640 Provision (recapture) for loan and lease losses 4,995 (1,293) 352 (1,969) 4,367 Non-interest income 19,426 19,014 18,495 21,002 15,742 Non-interest expense 44,555 58,968 44,180 42,981 38,842 Income before provision for income taxes 28,612 23,067 33,808 38,164 29,173 Provision for income taxes 6,301 5,878 8,502 9,672 7,375 Net income 22,311 17,189 25,306 28,492 21,798 Dividends on preferred shares 196 196 196 195 196 Net income available to common stockholders $ 22,115 $ 16,993 $ 25,110 $ 28,297 $ 21,602 Diluted earnings per common share(1) $ 0.58 $ 0.45 $ 0.66 $ 0.73 $ 0.56 Balance Sheet Total loans and leases $ 4,789,068 $ 4,537,128 $ 4,609,228 $ 4,469,457 $ 4,454,620 Total deposits 5,530,102 5,155,047 5,158,278 5,092,195 5,024,540 Tangible common equity(1) 624,709 660,386 646,684 637,601 612,475 Balance Sheet Metrics Loans and leases / total deposits 87.31% 89.26% 90.29% 88.26% 89.23% Tangible common equity / tangible assets(1) 9.36% 10.11% 9.89% 10.01% 9.31% Key Performance Ratios Net interest margin 3.81% 3.96% 3.91% 3.74% 3.77% Efficiency ratio 54.96% 70.88% 54.18% 51.95% 51.25% Adjusted efficiency ratio(1) 54.96% 55.46% 52.35% 49.50% 50.41% Non-interest expense to average assets 2.69% 3.49% 2.67% 2.57% 2.39% Non-interest income to total revenues 24.85% 23.55% 23.61% 26.53% 21.75% Return on average assets 1.35% 1.02% 1.53% 1.70% 1.34% Adjusted return on average assets(1) 1.35% 1.56% 1.59% 1.78% 1.37% Pre-tax pre-provision return on average assets (1) 2.03% 1.29% 2.07% 2.16% 2.06% Dividend payout ratio on common stock 15.52% 20.00% 13.64% 8.22% 10.71% Tangible book value per common share(1) $ 16.52 $ 17.51 $ 17.16 $ 16.74 $ 15.85 Five Quarter Financial Summary Represents a non-GAAP financial measure. See “Non-GAAP Reconciliation” in the appendix.
As of or For the Three Months Ended (dollars in thousands, except per share data) March 31, 2022 December 31, 2021 September 30, 2021 June 30, 2021 March 31, 2021 Net income and earnings per share excluding significant items Reported Net Income $ 22,311 $ 17,189 $ 25,306 $ 28,492 $ 21,798 Significant items: Impairment charges on assets held for sale and ROU asset — 12,449 1,434 1,943 604 Tax benefit — (3,377) (390) (530) (165) Adjusted Net Income $ 22,311 $ 26,261 $ 26,350 $ 29,905 $ 22,237 Reported Diluted Earnings per Share $ 0.58 $ 0.45 $ 0.66 $ 0.73 $ 0.56 Significant items: Impairment charges on assets held for sale and ROU asset — 0.33 0.04 0.05 0.02 Tax benefit — (0.09) (0.01) (0.01) (0.01) Adjusted Diluted Earnings per Share $ 0.58 $ 0.69 $ 0.69 $ 0.77 $ 0.57 Non-GAAP Reconciliation
As of or For the Three Months Ended (dollars in thousands) March 31, 2022 December 31, 2021 September 30, 2021 June 30, 2021 March 31, 2021 Adjusted non-interest expense: Non-interest expense $ 44,555 $ 58,968 $ 44,180 $ 42,981 $ 38,842 Less: Significant items Impairment charges on assets held for sale and ROU asset — 12,449 1,434 1,943 604 Adjusted non-interest expense $ 44,555 $ 46,519 $ 42,746 $ 41,038 $ 38,238 Adjusted non-interest expense ex. amortization of intangible assets: Adjusted non-interest expense $ 44,555 $ 46,519 $ 42,746 $ 41,038 $ 38,238 Less: Amortization of intangible assets 1,596 1,738 1,738 1,848 1,749 Adjusted non-interest expense ex. amortization of intangible assets $ 42,959 $ 44,781 $ 41,008 $ 39,190 $ 36,489 Pre-tax pre-provision net income: Pre-tax income $ 28,612 $ 23,067 $ 33,808 $ 38,164 $ 29,173 Add: Provision for loan and lease losses 4,995 (1,293) 352 (1,969) 4,367 Pre-tax pre-provision net income $ 33,607 $ 21,774 $ 34,160 $ 36,195 $ 33,540 Adjusted pre-tax pre-provision net income: Pre-tax pre-provision net income $ 33,607 $ 21,774 $ 34,160 $ 36,195 $ 33,540 Impairment charges on assets held for sale and ROU asset — 12,449 1,434 1,943 604 Adjusted pre-tax pre-provision net income $ 33,607 $ 34,223 $ 35,594 $ 38,138 $ 34,144 Tax Equivalent Net Interest Income Net interest income $ 58,736 $ 61,728 $ 59,845 $ 58,174 $ 56,640 Add: Tax-equivalent adjustment 236 256 264 269 250 Net interest income, fully taxable equivalent $ 58,972 $ 61,984 $ 60,109 $ 58,443 $ 56,890 Total revenues: Net interest income $ 58,736 $ 61,728 $ 59,845 $ 58,174 $ 56,640 Add: Non-interest income 19,426 19,014 18,495 21,002 15,742 Total revenues $ 78,162 $ 80,742 $ 78,340 $ 79,176 $ 72,382 Non-GAAP Reconciliation (continued)
As of or For the Three Months Ended (dollars in thousands) March 31, 2022 December 31, 2021 September 30, 2021 June 30, 2021 March 31, 2021 Tangible common stockholders' equity: Total stockholders' equity $ 788,671 $ 836,382 $ 824,418 $ 817,073 $ 793,795 Less: Preferred stock — 10,438 10,438 10,438 10,438 Less: Goodwill and other intangibles 163,962 165,558 167,296 169,034 170,882 Tangible common stockholders' equity $ 624,709 $ 660,386 $ 646,684 $ 637,601 $ 612,475 Tangible assets: Total assets $ 6,834,636 $ 6,696,172 $ 6,704,451 $ 6,540,602 $ 6,750,125 Less: Goodwill and other intangibles 163,962 165,558 167,296 169,034 170,882 Tangible assets $ 6,670,674 $ 6,530,614 $ 6,537,155 $ 6,371,568 $ 6,579,243 Average tangible common stockholders' equity: Average total stockholders' equity $ 832,161 $ 838,975 $ 823,754 $ 810,490 $ 806,452 Less: Average preferred stock 9,974 10,438 10,438 10,438 10,438 Less: Average goodwill and other intangibles 164,837 166,396 168,140 169,906 171,795 Average tangible common stockholders' equity $ 657,350 $ 662,141 $ 645,176 $ 630,146 $ 624,219 Average tangible assets: Average total assets $ 6,705,987 $ 6,699,069 $ 6,560,868 $ 6,720,492 $ 6,587,765 Less: Average goodwill and other intangibles 164,837 166,396 168,140 169,906 171,795 Average tangible assets $ 6,541,150 $ 6,532,673 $ 6,392,728 $ 6,550,586 $ 6,415,970 Tangible net income available to common stockholders: Net income available to common stockholders $ 22,115 $ 16,993 $ 25,110 $ 28,297 $ 21,602 Add: After-tax intangible asset amortization 1,163 1,266 1,265 1,344 1,272 Tangible net income available to common stockholders $ 23,278 $ 18,259 $ 26,375 $ 29,641 $ 22,874 Adjusted tangible net income available to common stockholders: Tangible net income available to common stockholders $ 23,278 $ 18,259 $ 26,375 $ 29,641 $ 22,874 Impairment charges on assets held for sale and ROU asset — 12,449 1,434 1,943 604 Tax benefit on significant items — (3,377) (390) (530) (165) Adjusted tangible net income available to common stockholders $ 23,278 $ 27,331 $ 27,419 $ 31,054 $ 23,313 Non-GAAP Reconciliation (continued)
As of or For the Three Months Ended (dollars in thousands, except share and per share data, ratios annualized, where applicable) March 31, 2022 December 31, 2021 September 30, 2021 June 30, 2021 March 31, 2021 Pre-tax pre-provision return on average assets: Pre-tax pre-provision net income $ 33,607 $ 21,774 $ 34,160 $ 36,195 $ 33,540 Average total assets 6,705,986 6,699,069 6,560,868 6,720,492 6,587,765 Pre-tax pre-provision return on average assets 2.03% 1.29% 2.07% 2.16% 2.06% Adjusted pre-tax pre-provision return on average assets: Adjusted pre-tax pre-provision net income $ 33,607 $ 34,223 $ 35,595 $ 38,137 $ 34,144 Average total assets 6,705,986 6,699,069 6,560,868 6,720,492 6,587,765 Adjusted pre-tax pre-provision return on average assets 2.03% 2.03% 2.15% 2.28% 2.10% Net interest margin, fully taxable equivalent Net interest income, fully taxable equivalent $ 58,972 $ 61,984 $ 60,109 $ 58,443 $ 56,890 Total average interest-earning assets 6,253,889 6,189,762 6,076,065 6,231,616 6,097,712 Net interest margin, fully taxable equivalent 3.82% 3.97% 3.92% 3.76% 3.78% Non-interest income to total revenues: Non-interest income $ 19,426 $ 19,014 $ 18,495 $ 21,002 $ 15,742 Total revenues 78,162 80,742 78,340 79,176 72,382 Non-interest income to total revenues 24.85% 23.55% 23.61% 26.53% 21.75% Adjusted non-interest expense to average assets: Adjusted non-interest expense $ 44,555 $ 46,519 $ 42,746 $ 41,038 $ 38,238 Average total assets 6,705,987 6,699,069 6,560,868 6,720,492 6,587,765 Adjusted non-interest expense to average assets 2.69% 2.76% 2.58% 2.45% 2.35% Adjusted efficiency ratio: Adjusted non-interest expense excluding amortization of intangible assets $ 42,959 $ 44,781 $ 41,006 $ 39,190 $ 36,489 Total revenues 78,162 80,742 78,340 79,176 72,382 Adjusted efficiency ratio 54.96% 55.46% 52.35% 49.50% 50.41% Non-GAAP Reconciliation (continued)
As of or For the Three Months Ended March 31, 2022 December 31, 2021 September 30, 2021 June 30, 2021 March 31, 2021 Adjusted return on average assets: Adjusted net income $ 22,311 $ 26,261 $ 26,350 $ 29,905 $ 22,237 Average total assets 6,705,986 6,699,069 6,560,868 6,720,492 6,587,765 Adjusted return on average assets 1.35% 1.56% 1.59% 1.78% 1.37% Adjusted return on average stockholders' equity: Adjusted net income $ 22,311 $ 26,261 $ 26,350 $ 29,905 $ 22,237 Average stockholders' equity 832,161 838,975 823,754 810,490 806,452 Adjusted return on average stockholders' equity 10.87% 12.42% 12.69% 14.80% 11.18% Tangible common equity to tangible assets: Tangible common equity $ 624,709 $ 660,386 $ 646,684 $ 637,601 $ 612,475 Tangible assets 6,670,674 6,530,614 6,537,155 6,371,568 6,579,243 Tangible common equity to tangible assets 9.36% 10.11% 9.89% 10.01% 9.31% Return on average tangible common stockholders' equity: Tangible net income available to common stockholders $ 23,278 $ 18,259 $ 26,375 $ 29,641 $ 22,874 Average tangible common stockholders' equity 657,350 662,141 645,176 630,146 624,219 Return on average tangible common stockholders' equity 14.36% 10.94% 16.22% 18.87% 14.86% Adjusted return on average tangible common stockholders' equity: Adjusted tangible net income available to common stockholders $ 23,278 $ 27,331 $ 27,419 $ 31,054 $ 23,313 Average tangible common stockholders' equity 657,350 662,141 645,176 630,146 624,219 Adjusted return on average tangible common stockholders' equity 14.36% 16.38% 16.86% 19.77% 15.15% Tangible book value per share: Tangible common equity $ 624,709 $ 660,386 $ 646,684 $ 637,601 $ 612,475 Common shares outstanding 37,811,582 37,713,903 37,690,087 38,094,972 38,641,851 Tangible book value per share $ 16.52 $ 17.51 $ 17.16 $ 16.74 $ 15.85 Non-GAAP Reconciliation (continued)