8-K

Exhibit 99.1

Byline Bancorp, Inc. Reports Third Quarter 2022 Financial Results

Select Third Quarter 2022 Financial Highlights

•

Net income of $22.7 million, or $0.61 per diluted share

•

Net interest income of $68.9 million and $12.0 million of non-interest income

•

Total revenue1 of $80.9 million

•

Net interest margin of 4.04%

•

Return on average assets of 1.26%

•

Efficiency ratio of 55.11%

•

Originated loans and leases increased $134.3 million, loan and lease production, net of loan sales of $303.2 million

•

Total deposits increased $224.1 million to $5.6 billion

•

Common Equity Tier 1 to risk weighted assets of 10.24%

Chicago, IL, October 27, 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 $22.7 million, or $0.61 per diluted share, for the third quarter of 2022 compared with net income of $20.3 million, or $0.54 per diluted share, for the second quarter of 2022, and net income of $25.3 million, or $0.66 per diluted share, for the third quarter 2021.

Roberto R. Herencia, Executive Chairman and Chief Executive Officer of Byline Bancorp, Inc., commented, “Byline delivered a strong third quarter with record revenues, driven by expansion in net interest income supported by loan, lease and deposit growth and the benefit of higher interest rates. We continue to focus on maintaining a healthy balance sheet and strong capital and liquidity positions. Given the uncertain economic environment, we are preparing for a range of possible outcomes and will continue to manage the bank in a prudent, disciplined manner. I want to thank our employees for their dedication to helping our customers, communities, and shareholders.”

Alberto J. Paracchini, President of Byline Bancorp, Inc. added, “Our performance was balanced and resilient in an uncertain and difficult environment, delivering solid financial results for the third quarter. Our net interest margin increased and thanks to our bankers and team members, we continued to experience healthy growth on our balance sheet. While the loan and lease portfolio continues to perform well, we believe our consistently strong underwriting and credit risk management practices prepare us well for changes in the business cycle.”

Board Declares Cash Dividend of $0.09 per Share

On October 25, 2022, the Company's Board of Directors declared a cash dividend of $0.09 per share, payable on November 22, 2022, to stockholders of record of the Company's common stock as of November 8, 2022.

(1)

Represents non-GAAP financial measures. See “Reconciliation of non-GAAP Financial Measures” for a reconciliation of our non-GAAP measures to the most directly comparable GAAP financial measure.

Byline Bancorp, Inc.

Page 2 of 17

STATEMENTS OF OPERATIONS

Net Interest Income

The following table presents the average interest-earning assets and average interest-bearing liabilities for the periods indicated. Net interest income and margin are adjusted to reflect tax-exempt interest income on a tax-equivalent basis using tax rates effective as of the end of the period:


	For the Three Months Ended
	September 30, 2022								June 30, 2022								September 30, 2021
(dollars in thousands)	Average Balance(5)			Interest Inc / Exp		Avg. Yield / Rate			Average Balance(5)			Interest Inc / Exp		Avg. Yield / Rate			Average Balance(5)			Interest Inc / Exp		Avg. Yield / Rate
ASSETS
Cash and cash equivalents	$	77,522		$	210		1.08	%	$	66,034		$	74		0.45	%	$	40,088		$	19		0.19	%
Loans and leases(1)		5,218,135			72,824		5.54	%		5,009,077			59,674		4.78	%		4,539,111			56,291		4.92	%
Taxable securities		1,302,375			6,014		1.83	%		1,330,200			5,904		1.78	%		1,309,802			5,472		1.66	%
Tax-exempt securities(2)		162,591			1,083		2.64	%		168,567			1,131		2.69	%		187,064			1,254		2.66	%
Total interest-earning assets	$	6,760,623		$	80,131		4.70	%	$	6,573,878		$	66,783		4.07	%	$	6,076,065		$	63,036		4.12	%
Allowance for loan and lease losses		(62,733	)							(59,883	)							(61,528	)
All other assets		447,299								461,730								546,331
TOTAL ASSETS	$	7,145,189							$	6,975,725							$	6,560,868
LIABILITIES AND STOCKHOLDERS’ EQUITY
Deposits
Interest checking	$	583,777		$	1,077		0.73	%	$	615,831		$	415		0.27	%	$	653,543		$	228		0.14	%
Money market accounts		1,391,923			3,358		0.96	%		1,307,320			1,194		0.37	%		1,031,009			280		0.11	%
Savings		673,966			247		0.15	%		664,954			83		0.05	%		625,037			75		0.05	%
Time deposits		687,124			1,289		0.74	%		627,199			436		0.28	%		709,805			403		0.23	%
Total interest-bearing deposits		3,336,790			5,971		0.71	%		3,215,304			2,128		0.27	%		3,019,394			986		0.13	%
Other borrowings		607,471			3,232		2.11	%		497,082			1,083		0.87	%		426,284			349		0.33	%
Federal funds purchased		—			—		0.00	%		2,527			14		2.32	%		—			—		0.00	%
Subordinated notes and debentures		110,799			1,825		6.54	%		110,649			1,694		6.14	%		110,195			1,592		5.73	%
Total borrowings		718,270			5,057		2.79	%		610,258			2,791		1.83	%		536,479			1,941		1.44	%
Total interest-bearing liabilities	$	4,055,060		$	11,028		1.08	%	$	3,825,562		$	4,919		0.52	%	$	3,555,873		$	2,927		0.33	%
Non-interest-bearing demand deposits		2,198,095								2,265,426								2,106,189
Other liabilities		116,676								104,085								75,052
Total stockholders’ equity		775,358								780,652								823,754
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY	$	7,145,189							$	6,975,725							$	6,560,868
Net interest spread(3)							3.62	%							3.55	%							3.79	%
Net interest income, fully taxable equivalent				$	69,103							$	61,864							$	60,109
Net interest margin, fully taxable equivalent(2)(4)							4.05	%							3.77	%							3.92	%
Less: Tax-equivalent adjustment					228		0.01	%					237		0.01	%					264		0.01	%
Net interest income				$	68,875							$	61,627							$	59,845
Net interest margin(4)							4.04	%							3.76	%							3.91	%

Net loan accretion impact on margin				$	1,559		0.09	%				$	1,383		0.08	%				$	1,638		0.11	%

(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.

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The following table presents net interest income for the periods indicated:


							September 30, 2022
	Three Months Ended						Change from
	September 30,		June 30,		September 30,		June 30,			September 30,
(dollars in thousands)	2022		2022		2021		2022			2021
INTEREST AND DIVIDEND INCOME
Interest and fees on loans and leases	$	72,824	$	59,674	$	56,291		22.0	%		29.4	%
Interest on securities		6,402		6,264		5,534		2.2	%		15.7	%
Other interest and dividend income		677		608		947		11.4	%		(28.5	)%
Total interest and dividend income		79,903		66,546		62,772		20.1	%		27.3	%
INTEREST EXPENSE
Deposits		5,971		2,128		986		180.6	%		505.6	%
Other borrowings		3,232		1,097		349		194.5	%		824.8	%
Subordinated notes and debentures		1,825		1,694		1,592		7.8	%		14.7	%
Total interest expense		11,028		4,919		2,927		124.2	%		276.8	%
Net interest income	$	68,875	$	61,627	$	59,845		11.8	%		15.1	%

Net interest income for the third quarter of 2022 was $68.9 million, an increase of $7.2 million, or 11.8%, from the second quarter of 2022, driven mainly by the rising interest rate environment.

The increase in net interest income was primarily due to:

•

An increase of $13.2 million in interest income and fees on loans and leases due to higher yields and growth in the originated loan and lease portfolio.

Partially offset by:

•

An increase of $3.8 million in deposit interest expense due to higher rates paid on deposits and growth in interest-bearing deposits; and

•

An increase of $2.1 million in interest expense on other borrowings due to rates paid on higher average balances of FHLB advances.

Tax-equivalent net interest margin for the third quarter of 2022 was 4.05%, an increase of 28 basis points compared to the second quarter of 2022. Total net accretion income on acquired loans contributed nine basis points to the net interest margin for the third quarter of 2022 compared to eight basis points for the second quarter of 2022, an increase of one basis point.

The average cost of total deposits was 0.43% for the third quarter of 2022, an increase of 27 basis points compared to the second quarter of 2022. Average non-interest-bearing demand deposits were 39.7% of average total deposits for the third quarter of 2022 compared to 41.3% during the second quarter of 2022.

Provision for Loan and Lease Losses

The provision for loan and lease losses was $4.2 million for the third quarter of 2022, a decrease of $1.7 million compared to $5.9 million for the second quarter of 2022. The decrease in provision during the third quarter of 2022 was primarily driven by lower growth in the originated loan and lease portfolio, which reduced the impact of qualitative factors surrounding the macroeconomic environment and rising interest rates. This decrease was partially offset by increases in specific reserves on impaired loans.

Byline Bancorp, Inc.

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Non-interest Income

The following table presents the components of non-interest income for the periods indicated:


										September 30, 2022
	Three Months Ended									Change from
	September 30,			June 30,			September 30,			June 30,			September 30,
(dollars in thousands)	2022			2022			2021			2022			2021
NON-INTEREST INCOME
Fees and service charges on deposits	$	2,128		$	2,059		$	1,867			3.4	%		14.0	%
Loan servicing revenue		3,422			3,384			3,344			1.1	%		2.4	%
Loan servicing asset revaluation		(2,342	)		(4,636	)		(2,650	)		(49.5	)%		(11.6	)%
ATM and interchange fees		1,007			1,131			1,201			(11.0	)%		(16.1	)%
Net realized gains (losses) on securities available-for-sale		(2	)		52			130		NM			NM
Change in fair value of equity securities, net		(581	)		(697	)		(275	)		(16.7	)%		111.0	%
Net gains on sales of loans		5,580			9,983			12,761			(44.1	)%		(56.3	)%
Wealth management and trust income		995			900			815			10.7	%		22.2	%
Other non-interest income		1,785			1,985			1,302			(10.2	)%		37.0	%
Total non-interest income	$	11,992		$	14,161		$	18,495			(15.3	)%		(35.2	)%

Non-interest income for the third quarter of 2022 was $12.0 million, a decrease of $2.2 million or 15.3%, compared to $14.2 million for the second quarter of 2022.

The decrease in total non-interest income was primarily due to:

•

A decrease of $4.4 million in net gains on sales of loans due to lower volume of loan sales and lower average premiums.

Partially offset by:

•

A decrease of $2.3 million in the downward valuation adjustment to the loan servicing asset, due to changes in discount rates and lower prepayments compared to the prior quarter.

During the third quarter of 2022, we sold $75.4 million of U.S. government guaranteed loans compared to $118.5 million during the second quarter of 2022.

Non-interest Expense

The following table presents the components of non-interest expense for the periods indicated:


							September 30, 2022
	Three Months Ended						Change from
	September 30,		June 30,		September 30,		June 30,			September 30,
(dollars in thousands)	2022		2022		2021		2022			2021
NON-INTEREST EXPENSE
Salaries and employee benefits	$	29,587	$	27,697	$	25,978		6.8	%		13.9	%
Occupancy and equipment expense, net		3,919		4,409		4,982		(11.1	)%		(21.3	)%
Impairment charge on assets held for sale		—		—		1,434	NM			NM
Loan and lease related expenses		530		942		1,175		(43.6	)%		(54.8	)%
Legal, audit and other professional fees		2,733		1,820		2,710		50.1	%		0.8	%
Data processing		3,370		3,396		3,108		(0.8	)%		8.4	%
Net loss recognized on other real estate owned and other related expenses		275		158		42		74.4	%	NM
Other intangible assets amortization expense		1,611		1,868		1,738		(13.7	)%		(7.3	)%
Other non-interest expense		4,153		3,483		3,013		19.2	%		37.9	%
Total non-interest expense	$	46,178	$	43,773	$	44,180		5.5	%		4.5	%

Non-interest expense for the third quarter of 2022 was $46.2 million, an increase of $2.4 million, or 5.5%, from $43.8 million for the second quarter of 2022.

The increase in total non-interest expense was primarily due to:

•

An increase of $1.9 million in salaries and employee benefits due to increased headcount and higher commissions;

Byline Bancorp, Inc.

Page 5 of 17

•

An increase of $913,000 in legal, audit and other professional fees related to higher second quarter reimbursements; and

•

An increase of $670,000 in other non-interest expense mainly related to new advertising campaigns.

Partially offset by:

•

A decrease of $490,000 in occupancy and equipment expense, net, due to the impact from branch consolidations.

Our efficiency ratio was 55.11% for the third quarter of 2022 compared to 55.29% for the second quarter of 2022.

INCOME TAXES

We recorded income tax expense of $7.9 million during the third quarter of 2022, compared to $5.8 million during the second quarter of 2022. The effective tax rate was 25.7% and 22.3% for the third quarter of 2022 and second quarter of 2022, respectively. The increase in the effective tax rate is a result of tax benefits related to share-based compensation taken during the second quarter.

STATEMENTS OF FINANCIAL CONDITION

Total assets were $7.3 billion at September 30, 2022, an increase of $145.9 million compared to $7.1 billion at June 30, 2022.

The current quarter increase was primarily due to:

•

An increase in net loans and leases of $105.2 million primarily due to growth in originated commercial and industrial loans and the lease financing receivables portfolio.

Partially offset by:

•

A decrease in securities available-for-sale of $91.5 million primarily due to changes in market value.

Byline Bancorp, Inc.

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The following table shows our allocation of the originated, acquired impaired, and acquired non-impaired loans and leases at the dates indicated:


	September 30, 2022						June 30, 2022						September 30, 2021
(dollars in thousands)	Amount			% of Total			Amount			% of Total			Amount			% of Total
Originated loans and leases
Commercial real estate	$	1,652,890			31.3	%	$	1,672,438			32.4	%	$	1,298,454			28.2	%
Residential real estate		410,285			7.8	%		401,095			7.7	%		387,578			8.4	%
Construction, land development, and other land		456,463			8.7	%		434,132			8.4	%		336,460			7.3	%
Commercial and industrial		1,938,320			36.7	%		1,861,582			36.0	%		1,480,076			32.1	%
Paycheck Protection Program		1,522			0.0	%		10,391			0.2	%		268,081			5.8	%
Installment and other		1,016			0.0	%		926			0.0	%		998			0.0	%
Leasing financing receivables		492,744			9.3	%		438,379			8.5	%		331,149			7.2	%
Total originated loans and leases	$	4,953,240			93.8	%	$	4,818,943			93.2	%	$	4,102,796			89.0	%
Acquired impaired loans
Commercial real estate	$	56,974			1.1	%	$	60,075			1.2	%	$	84,821			1.8	%
Residential real estate		37,246			0.7	%		39,902			0.8	%		61,893			1.3	%
Construction, land development, and other land		1,144			0.0	%		1,184			0.0	%		1,746			0.1	%
Commercial and industrial		3,029			0.1	%		3,232			0.1	%		6,651			0.1	%
Installment and other		153			0.0	%		157			0.0	%		169			0.0	%
Total acquired impaired loans	$	98,546			1.9	%	$	104,550			2.1	%	$	155,280			3.3	%
Acquired non-impaired loans and leases
Commercial real estate	$	159,130			3.0	%	$	167,425			3.2	%	$	235,103			5.1	%
Residential real estate		34,313			0.7	%		40,174			0.8	%		58,283			1.3	%
Construction, land development, and other land		—			0.0	%		191			0.0	%		206			0.0	%
Commercial and industrial		26,959			0.5	%		32,569			0.6	%		49,678			1.1	%
Installment and other		199			0.0	%		227			0.0	%		275			0.0	%
Leasing financing receivables		3,084			0.1	%		3,992			0.1	%		7,607			0.2	%
Total acquired non-impaired loans and leases	$	223,685			4.3	%	$	244,578			4.7	%	$	351,152			7.7	%
Total loans and leases	$	5,275,471			100.0	%	$	5,168,071			100.0	%	$	4,609,228			100.0	%
Allowance for loan and lease losses		(64,655	)					(62,436	)					(60,598	)
Total loans and leases, net of allowance for loan and lease losses	$	5,210,816					$	5,105,635					$	4,548,630

Byline Bancorp, Inc.

Page 7 of 17

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:


										September 30, 2022
										Change from
(dollars in thousands)	September 30, 2022			June 30, 2022			September 30, 2021			June 30, 2022			September 30, 2021
Non-performing assets:
Non-accrual loans and leases	$	35,165		$	33,944		$	34,465			3.6	%		2.0	%
Past due loans and leases 90 days or more and still accruing interest		—			—			—		—%			—%
Total non-performing loans and leases	$	35,165		$	33,944		$	34,465			3.6	%		2.0	%
Other real estate owned		4,402			4,749			3,033			(7.3	)%		45.1	%
Total non-performing assets	$	39,567		$	38,693		$	37,498			2.3	%		5.5	%
Accruing troubled debt restructured loans (1)	$	737		$	1,358		$	2,366			(45.8	)%		(68.8	)%
Total non-performing loans and leases as a percentage of total loans and leases		0.67	%		0.66	%		0.75	%
Total non-performing assets as a percentage of total assets		0.54	%		0.54	%		0.56	%
Allowance for loan and lease losses as a percentage of non-performing loans and leases		183.86	%		183.94	%		175.82	%

Non-performing assets guaranteed by U.S. government:
Non-accrual loans guaranteed	$	1,676		$	1,731		$	6,326			(3.2	)%		(73.5	)%
Past due loans 90 days or more and still accruing interest guaranteed		—			—			—		—%			—%
Total non-performing loans guaranteed	$	1,676		$	1,731		$	6,326			(3.2	)%		(73.5	)%
Accruing troubled debt restructured loans guaranteed (1)	$	—		$	—		$	—		—%			—%
Total non-performing loans and leases not guaranteed as a percentage of total loans and leases		0.63	%		0.62	%		0.61	%
Total non-performing assets not guaranteed as a percentage of total assets		0.52	%		0.52	%		0.46	%

(1) Accruing troubled debt restructured loans are not included in total non-performing loans and leases or in non-performing assets.

Byline Bancorp, Inc.

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Variances in non-performing assets were:

•

Non-performing loans and leases were $35.2 million at September 30, 2022, an increase of $1.2 million from $33.9 million at June 30, 2022, primarily due to one new conventional non-performing relationship.

•

Other real estate owned was $4.4 million at September 30, 2022, a decrease of $347,000 from $4.7 million at June 30, 2022, primarily due to the sale of one property.

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
	September 30,			June 30,			September 30,
(dollars in thousands)	2022			2022			2021
Allowance for loan and lease losses, beginning of period	$	62,436		$	59,458		$	61,719
Provision for loan and lease losses		4,176			5,908			352
Net charge-offs of loans and leases		(1,957	)		(2,930	)		(1,473	)
Allowance for loan and lease losses, end of period	$	64,655		$	62,436		$	60,598

Allowance for loan and lease losses to period end total loans and leases held for investment		1.23	%		1.21	%		1.31	%
Net charge-offs to average total loans and leases held for investment, net before ALLL		0.15	%		0.24	%		0.13	%
Provision for loan and lease losses to net charge-offs during the period		2.13	x		2.02	x		0.24	x

The allowance for loan and lease losses as a percentage of total loans and leases held for investment increased to 1.23% at September 30, 2022 compared to 1.21% at June 30, 2022, primarily due to higher provision to net charge-offs for the third quarter 2022.

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 will adopt the standard on December 31, 2022. The new guidance may result in an increase in the allowance for loan and lease losses, which will reflect the requirement to include expected losses on purchased credit-impaired loans. The extent of the increase will depend on the composition of the loan and lease portfolio, as well as the economic conditions and forecasts as of the adoption date.

Net Charge-Offs

Net charge-offs during the third quarter of 2022 were $2.0 million, or 0.15% of average loans and leases, on an annualized basis, a decrease of $973,000 compared to $2.9 million, or 0.24% of average loans and leases, during the second quarter of 2022, and an increase of $484,000 from $1.5 million or 0.13% of average loans and leases from the comparable period a year ago.

Net charge-offs for the third quarter of 2022 included $1.9 million in the unguaranteed portion of U.S. government guaranteed loans, while net charge-offs for the second quarter of 2022 and third quarter of 2021 included $2.7 million and $1.3 million, respectively, in the unguaranteed portion of U.S. government guaranteed loans.

Byline Bancorp, Inc.

Page 9 of 17

Deposits and Other Liabilities

The following table presents the composition of deposits at the dates indicated:


							September 30, 2022
							Change from
(dollars in thousands)	September 30, 2022		June 30, 2022		September 30, 2021		June 30, 2022			September 30, 2021
Non-interest-bearing demand deposits	$	2,142,183	$	2,180,927	$	2,117,749		(1.8	)%		1.2	%
Interest-bearing checking accounts		616,139		535,856		652,824		15.0	%		(5.6	)%
Money market demand accounts		1,485,815		1,323,287		1,057,419		12.3	%		40.5	%
Other savings		669,734		669,164		627,294		0.1	%		6.8	%
Time deposits (below $250,000)		586,198		544,759		553,364		7.6	%		5.9	%
Time deposits ($250,000 and above)		112,387		134,384		149,628		(16.4	)%		(24.9	)%
Total deposits	$	5,612,456	$	5,388,377	$	5,158,278		4.2	%		8.8	%

Total deposits increased to $5.6 billion at September 30, 2022 compared to $5.4 billion at June 30, 2022. Non-interest-bearing deposits were 38.2% and 40.5% of total deposits at September 30, 2022 and June 30, 2022, respectively.

The increase in deposits in the current quarter was primarily due to:

•

An increase in money market demand accounts of $162.5 million, due to increases in consumer deposits; and

•

An increase in interest bearing checking accounts of $80.3 million, principally due to increases in commercial deposits.

Total borrowings and other liabilities were $917.6 million at September 30, 2022, a decrease of $60.6 million from $978.2 million at June 30, 2022, primarily driven by decreases in Federal Home Loan Bank advances.

Stockholders’ Equity

Total stockholders’ equity was $747.6 million at September 30, 2022, a decrease of $17.6 million from $765.2 million at June 30, 2022. The decrease was primarily due to an increase in accumulated other comprehensive loss.

Under its stock repurchase program, the Company repurchased 174,249 shares of its common stock at an average price of $23.84 per share during the third quarter of 2022.

The following table presents actual regulatory capital dollar amounts and ratios of the Company and Byline Bank as of September 30, 2022:


	Actual					Minimum Capital Required					Required to be Considered Well Capitalized
September 30, 2022	Amount		Ratio			Amount		Ratio			Amount		Ratio
Total capital to risk weighted assets:
Company	$	873,588		13.02	%	$	536,609		8.00	%	N/A		N/A
Bank		825,499		12.35	%		534,820		8.00	%	$	668,525		10.00	%
Tier 1 capital to risk weighted assets:
Company	$	731,606		10.91	%	$	402,457		6.00	%	N/A		N/A
Bank	$	758,517		11.35	%		401,115		6.00	%	$	534,820		8.00	%
Common Equity Tier 1 (CET1) to risk weighted assets:
Company	$	686,606		10.24	%	$	301,842		4.50	%	N/A		N/A
Bank		758,517		11.35	%		300,836		4.50	%	$	434,541		6.50	%
Tier 1 capital to average assets:
Company	$	731,606		10.30	%	$	284,252		4.00	%	N/A		N/A
Bank		758,517		10.69	%	$	283,789		4.00	%	$	354,736		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.

Byline Bancorp, Inc.

Page 10 of 17

Conference Call, Webcast and Slide Presentation

We will host a conference call and webcast at 9:00 a.m. Central Time on Friday, October 28, 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 518637. A recorded replay can be accessed through November 11, 2022 by dialing (866) 813-9403; passcode: 271643.

A slide presentation relating to our third 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 $7.3 billion in assets and operates more than 30 full service branch locations throughout the Chicago and Milwaukee metropolitan areas. Byline Bank offers a broad range of commercial and retail banking products and services including small ticket equipment leasing solutions and is one of the top 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 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
[email protected]	[email protected]

Byline Bancorp, Inc.

Page 11 of 17

BYLINE BANCORP, INC. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION (unaudited)


	September 30,			June 30,			March 31,			December 31,			September 30,
(dollars in thousands)	2022			2022			2022			2021			2021
ASSETS
Cash and due from banks	$	56,546		$	58,844		$	48,015		$	35,247		$	46,900
Interest bearing deposits with other banks		159,744			83,057			105,564			122,684			95,978
Cash and cash equivalents		216,290			141,901			153,579			157,931			142,878
Equity and other securities, at fair value		7,279			7,860			10,677			10,578			10,299
Securities available-for-sale, at fair value		1,181,654			1,273,138			1,369,368			1,454,542			1,427,605
Securities held-to-maturity, at amortized cost		3,877			3,880			3,882			3,885			3,887
Restricted stock, at cost		27,077			30,002			13,977			22,002			15,927
Loans held for sale		33,975			17,284			39,520			64,460			48,372
Loans and leases:
Loans and leases		5,275,471			5,168,071			4,789,068			4,537,128			4,609,228
Allowance for loan and lease losses		(64,655	)		(62,436	)		(59,458	)		(55,012	)		(60,598	)
Net loans and leases		5,210,816			5,105,635			4,729,610			4,482,116			4,548,630
Servicing assets, at fair value		21,127			22,155			24,497			23,744			23,597
Premises and equipment, net		59,049			60,773			62,281			62,548			76,995
Other real estate owned, net		4,402			4,749			2,221			2,112			3,033
Goodwill and other intangible assets, net		160,484			162,094			163,962			165,558			167,296
Bank-owned life insurance		81,592			81,100			80,604			80,039			60,992
Deferred tax assets, net		91,532			78,950			67,335			50,329			45,165
Accrued interest receivable and other assets		178,433			142,196			113,123			116,328			129,775
Total assets	$	7,277,587		$	7,131,717		$	6,834,636		$	6,696,172		$	6,704,451
LIABILITIES AND STOCKHOLDERS’ EQUITY
LIABILITIES
Non-interest-bearing demand deposits	$	2,142,183		$	2,180,927		$	2,281,612		$	2,158,420		$	2,117,749
Interest-bearing deposits		3,470,273			3,207,450			3,248,490			2,996,627			3,040,529
Total deposits		5,612,456			5,388,377			5,530,102			5,155,047			5,158,278
Other borrowings		653,954			748,092			311,450			519,723			539,119
Subordinated notes, net		73,648			73,604			73,560			73,517			73,473
Junior subordinated debentures issued to capital trusts, net		37,232			37,123			37,011			36,906			36,796
Accrued expenses and other liabilities		152,732			119,360			93,842			74,597			72,367
Total liabilities		6,530,022			6,366,556			6,045,965			5,859,790			5,880,033
STOCKHOLDERS’ EQUITY
Preferred stock		—			—			—			10,438			10,438
Common stock		389			388			388			387			386
Additional paid-in capital		597,049			595,938			595,006			593,753			592,192
Retained earnings		326,560			307,278			290,397			271,676			258,077
Treasury stock		(51,535	)		(47,181	)		(40,732	)		(31,570	)		(31,161	)
Accumulated other comprehensive loss, net of tax		(124,898	)		(91,262	)		(56,388	)		(8,302	)		(5,514	)
Total stockholders’ equity		747,565			765,161			788,671			836,382			824,418
Total liabilities and stockholders’ equity	$	7,277,587		$	7,131,717		$	6,834,636		$	6,696,172		$	6,704,451

Byline Bancorp, Inc.

Page 12 of 17

BYLINE BANCORP, INC. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF OPERATIONS (unaudited)


	Three Months Ended															Nine Months Ended
(dollars in thousands,	September 30,			June 30,			March 31,			December 31,			September 30,			September 30,			September 30,
except per share data)	2022			2022			2022			2021			2021			2022			2021
INTEREST AND DIVIDEND INCOME
Interest and fees on loans and leases	$	72,824		$	59,674		$	55,426		$	58,570		$	56,291		$	187,924		$	164,423
Interest on securities		6,402			6,264			6,155			5,619			5,534			18,821			17,982
Other interest and dividend income		677			608			237			495			947			1,522			1,837
Total interest and dividend income		79,903			66,546			61,818			64,684			62,772			208,267			184,242
INTEREST EXPENSE
Deposits		5,971			2,128			1,087			1,037			986			9,186			3,465
Other borrowings		3,232			1,097			395			330			349			4,724			1,333
Subordinated notes and debentures		1,825			1,694			1,600			1,589			1,592			5,119			4,785
Total interest expense		11,028			4,919			3,082			2,956			2,927			19,029			9,583
Net interest income		68,875			61,627			58,736			61,728			59,845			189,238			174,659
PROVISION/(RECAPTURE) FOR LOAN AND LEASE LOSSES		4,176			5,908			4,995			(1,293	)		352			15,079			2,750
Net interest income after provision/(recapture) for loan and lease losses		64,699			55,719			53,741			63,021			59,493			174,159			171,909
NON-INTEREST INCOME
Fees and service charges on deposits		2,128			2,059			1,884			1,955			1,867			6,071			5,299
Loan servicing revenue		3,422			3,384			3,380			3,392			3,344			10,186			9,301
Loan servicing asset revaluation		(2,342	)		(4,636	)		(1,231	)		(2,510	)		(2,650	)		(8,209	)		(4,148	)
ATM and interchange fees		1,007			1,131			1,049			1,219			1,201			3,187			3,257
Net realized gains (losses) on securities available-for-sale		(2	)		52			—			(21	)		130			50			1,456
Change in fair value of equity securities, net		(581	)		(697	)		(35	)		(98	)		(275	)		(1,313	)		36
Net gains on sales of loans		5,580			9,983			10,827			12,924			12,761			26,390			33,350
Wealth management and trust income		995			900			1,048			764			815			2,943			2,305
Other non-interest income		1,785			1,985			2,504			1,389			1,302			6,274			4,383
Total non-interest income		11,992			14,161			19,426			19,014			18,495			45,579			55,239
NON-INTEREST EXPENSE
Salaries and employee benefits		29,587			27,697			28,959			28,850			25,978			86,243			72,372
Occupancy and equipment expense, net		3,919			4,409			5,128			4,995			4,982			13,456			15,617
Impairment charge on assets held for sale		—			—			—			8,351			1,434			—			3,981
Loan and lease related expenses		530			942			(891	)		2,328			1,175			581			3,629
Legal, audit, and other professional fees		2,733			1,820			2,600			2,376			2,710			7,153			7,822
Data processing		3,370			3,396			3,186			3,070			3,108			9,952			8,710
Net loss recognized on other real estate owned and other related expenses		275			158			54			26			42			487			1,052
Other intangible assets amortization expense		1,611			1,868			1,596			1,738			1,738			5,075			5,335
Other non-interest expense		4,153			3,483			3,923			7,234			3,013			11,559			7,485
Total non-interest expense		46,178			43,773			44,555			58,968			44,180			134,506			126,003
INCOME BEFORE PROVISION FOR INCOME TAXES		30,513			26,107			28,612			23,067			33,808			85,232			101,145
PROVISION FOR INCOME TAXES		7,857			5,824			6,301			5,878			8,502			19,982			25,549
NET INCOME		22,656			20,283			22,311			17,189			25,306			65,250			75,596
Dividends on preferred shares		—			—			196			196			196			196			587
INCOME AVAILABLE TO COMMON STOCKHOLDERS	$	22,656		$	20,283		$	22,115		$	16,993		$	25,110		$	65,054		$	75,009
EARNINGS PER COMMON SHARE
Basic	$	0.61		$	0.55		$	0.60		$	0.46		$	0.68		$	1.76		$	1.99
Diluted	$	0.61		$	0.54		$	0.58		$	0.45		$	0.66		$	1.73		$	1.95

Byline Bancorp, Inc.

Page 13 of 17

BYLINE BANCORP, INC. AND SUBSIDIARIES

SELECTED FINANCIAL DATA (unaudited)


	As of or For the Three Months Ended															As of or For the Nine Months Ended
(dollars in thousands, except share	September 30,			June 30,			March 31,			December 31,			September 30,			September 30,			September 30,
and per share data)	2022			2022			2022			2021			2021			2022			2021

Earnings per Common Share
Basic earnings per common share	$	0.61		$	0.55		$	0.60		$	0.46		$	0.68		$	1.76		$	1.99
Diluted earnings per common share	$	0.61		$	0.54		$	0.58		$	0.45		$	0.66		$	1.73		$	1.95
Adjusted diluted earnings per common share(1)(2)(3)(4)	$	0.61		$	0.54		$	0.58		$	0.69		$	0.69		$	1.73		$	2.02
Weighted average common shares outstanding (basic)		36,851,973			37,064,795			37,123,161			37,124,176			37,200,778			37,012,316			37,773,350
Weighted average common shares outstanding (diluted)		37,371,159			37,612,268			38,042,822			37,999,401			38,018,301			37,581,866			38,523,112
Common shares outstanding		37,465,902			37,669,102			37,811,582			37,713,903			37,690,087			37,465,902			37,690,087
Cash dividends per common share	$	0.09		$	0.09		$	0.09		$	0.09		$	0.09		$	0.27		$	0.21
Dividend payout ratio on common stock		14.75	%		16.67	%		15.52	%		20.00	%		13.64	%		15.61	%		10.77	%
Tangible book value per common share(1)	$	15.67		$	16.01		$	16.52		$	17.51		$	17.16		$	15.67		$	17.16
Key Ratios and Performance Metrics (annualized where applicable)
Net interest margin, fully taxable equivalent (1)(5)		4.05	%		3.77	%		3.82	%		3.97	%		3.92	%		3.88	%		3.82	%
Average cost of deposits		0.43	%		0.16	%		0.08	%		0.08	%		0.08	%		0.22	%		0.09	%
Efficiency ratio(2)		55.11	%		55.29	%		54.96	%		70.88	%		54.18	%		55.12	%		52.49	%
Adjusted efficiency ratio(1)(2)(3)		55.11	%		55.29	%		54.96	%		55.46	%		52.35	%		55.12	%		50.76	%
Non-interest expense to average assets		2.56	%		2.52	%		2.69	%		3.49	%		2.67	%		2.59	%		2.54	%
Adjusted non-interest expense to average assets(1)(3)		2.56	%		2.52	%		2.69	%		2.76	%		2.58	%		2.59	%		2.46	%
Return on average stockholders' equity		11.59	%		10.42	%		10.87	%		8.13	%		12.19	%		10.96	%		12.42	%
Adjusted return on average stockholders' equity(1)(3)(4)		11.59	%		10.42	%		10.87	%		12.42	%		12.69	%		10.96	%		12.90	%
Return on average assets		1.26	%		1.17	%		1.35	%		1.02	%		1.53	%		1.26	%		1.53	%
Adjusted return on average assets(1)(3)(4)		1.26	%		1.17	%		1.35	%		1.56	%		1.59	%		1.26	%		1.58	%
Non-interest income to total revenues(1)		14.83	%		18.69	%		24.85	%		23.55	%		23.61	%		19.41	%		24.03	%
Pre-tax pre-provision return on average assets(1)		1.93	%		1.84	%		2.03	%		1.29	%		2.07	%		1.93	%		2.10	%
Adjusted pre-tax pre-provision return on average assets(1)(3)		1.93	%		1.84	%		2.03	%		2.03	%		2.15	%		1.93	%		2.18	%
Return on average tangible common stockholders' equity(1)		15.40	%		14.06	%		14.36	%		10.94	%		16.22	%		14.60	%		16.66	%
Adjusted return on average tangible common stockholders' equity(1)(3)		15.40	%		14.06	%		14.36	%		16.38	%		16.86	%		14.60	%		17.27	%
Non-interest-bearing deposits to total deposits		38.17	%		40.47	%		41.26	%		41.87	%		41.06	%		38.17	%		41.06	%
Loans and leases held for sale and loans and lease held for investment to total deposits		94.60	%		96.23	%		87.31	%		89.26	%		90.29	%		94.60	%		90.29	%
Deposits to total liabilities		85.95	%		84.64	%		91.47	%		87.97	%		87.73	%		85.95	%		87.73	%
Deposits per branch	$	147,696		$	141,799		$	125,684		$	117,160		$	117,234		$	147,696		$	117,234
Asset Quality Ratios
Non-performing loans and leases to total loans and leases held for investment, net before ALLL		0.67	%		0.66	%		0.42	%		0.51	%		0.75	%		0.67	%		0.75	%
ALLL to total loans and leases held for investment, net before ALLL		1.23	%		1.21	%		1.24	%		1.21	%		1.31	%		1.23	%		1.31	%
Net charge-offs to average total loans and leases held for investment, net before ALLL		0.15	%		0.24	%		0.05	%		0.37	%		0.13	%		0.15	%		0.25	%
Acquisition accounting adjustments(4)	$	2,537		$	3,050		$	3,364		$	4,769		$	6,327		$	2,537		$	6,327
Capital Ratios
Common equity to total assets		10.27	%		10.73	%		11.54	%		12.33	%		12.14	%		10.27	%		12.14	%
Tangible common equity to tangible assets(1)		8.25	%		8.65	%		9.36	%		10.11	%		9.89	%		8.25	%		9.89	%
Leverage ratio		10.30	%		10.34	%		10.70	%		10.89	%		11.21	%		10.30	%		11.21	%
Common equity tier 1 capital ratio		10.24	%		10.26	%		10.75	%		11.39	%		11.32	%		10.24	%		11.32	%
Tier 1 capital ratio		10.91	%		10.95	%		11.49	%		12.37	%		12.32	%		10.91	%		12.32	%
Total capital ratio		13.02	%		13.09	%		13.72	%		14.70	%		14.78	%		13.02	%		14.78	%

(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 17

BYLINE BANCORP, INC. AND SUBSIDIARIES

YEAR-TO-DATE STATEMENT OF AVERAGE INTEREST-EARNING ASSETS AND AVERAGE INTEREST-BEARING LIABILITIES (unaudited)


	For the Nine Months Ended September 30,
	2022								2021
(dollars in thousands)	Average Balance(5)			Interest Inc / Exp		Average Yield / Rate			Average Balance(5)			Interest Inc / Exp		Average Yield / Rate
ASSETS
Cash and cash equivalents	$	72,802		$	313		0.58	%	$	56,926		$	75		0.18	%
Loans and leases(1)		4,967,769			187,924		5.06	%		4,487,909			164,423		4.90	%
Taxable securities		1,323,838			17,393		1.76	%		1,405,390			16,798		1.60	%
Tax-exempt securities(2)		166,911			3,338		2.67	%		184,826			3,729		2.70	%
Total interest-earning assets	$	6,531,320		$	208,968		4.28	%	$	6,135,051		$	185,025		4.03	%
Allowance for loan and lease losses		(59,526	)							(64,768	)
All other assets		472,115								552,660
TOTAL ASSETS	$	6,943,909							$	6,622,943
LIABILITIES AND STOCKHOLDERS’ EQUITY
Deposits
Interest checking	$	592,985		$	1,670		0.38	%	$	609,444		$	647		0.14	%
Money market accounts		1,318,725			5,026		0.51	%		1,068,770			940		0.12	%
Savings		662,820			406		0.08	%		603,366			214		0.05	%
Time deposits		658,893			2,084		0.42	%		734,708			1,664		0.30	%
Total interest-bearing deposits		3,233,423			9,186		0.38	%		3,016,288			3,465		0.15	%
Other borrowings		466,194			4,710		1.35	%		572,018			1,333		0.31	%
Federal funds purchased		842			14		2.32	%		—			—		0.00	%
Subordinated notes and debentures		110,648			5,119		6.19	%		110,029			4,785		5.81	%
Total borrowings		577,684			9,843		2.28	%		682,047			6,118		1.20	%
Total interest-bearing liabilities	$	3,811,107		$	19,029		0.67	%	$	3,698,335		$	9,583		0.35	%
Non-interest-bearing demand deposits		2,237,002								2,039,242
Other liabilities		99,951								71,737
Total stockholders’ equity		795,849								813,629
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY	$	6,943,909							$	6,622,943
Net interest spread(3)							3.61	%							3.68	%
Net interest income, fully taxable equivalent				$	189,939							$	175,442
Net interest margin, fully taxable equivalent(2)(4)							3.88	%							3.82	%
Less: Tax-equivalent adjustment					701		0.01	%					783		0.01	%
Net interest income				$	189,238							$	174,659
Net interest margin(4)							3.87	%							3.81	%

Net loan accretion impact on margin				$	4,418		0.09	%				$	5,001		0.11	%

(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.

(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 15 of 17

BYLINE BANCORP, INC. AND SUBSIDIARIES

RECONCILIATION OF NON-GAAP FINANCIAL MEASURES (unaudited)

Non-GAAP Financial Measures

This release contains certain financial information determined by methods other than in accordance with accounting principles generally accepted in the United States of America (“GAAP”). These measures include adjusted net income, adjusted diluted earnings per share, adjusted efficiency ratio, adjusted non-interest expense to average assets, tax-equivalent net interest margin, total revenue, non-interest income to total revenues, adjusted return on average stockholders’ equity, adjusted return on average assets, pre-tax pre-provision return on average assets, adjusted pre-tax pre-provision return on average assets, tangible book value per common share, tangible common equity to tangible assets, return on average tangible common stockholders' equity, and adjusted return on average tangible common stockholders' equity. Management believes that these non-GAAP financial measures provide useful information to management and investors that is supplementary to the Company’s financial condition, results of operations and cash flows computed in accordance with GAAP; however, management acknowledges that our non-GAAP financial measures have a number of limitations. As such, these disclosures should not be viewed as a substitute for results determined in accordance with GAAP financial measures that we and other companies use. Management also uses these measures for peer comparison. See below in the financial schedules included in this press release for a reconciliation of the non-GAAP financial measures to the comparable GAAP financial measures. Additionally, please refer to the Company’s Annual Report on Form 10-K for the detailed definitions of these non-GAAP financial measures.


	As of or For the Three Months Ended												As of or For the Nine Months Ended
	September 30,		June 30,		March 31,		December 31,			September 30,			September 30,		September 30,
(dollars in thousands, except per share data)	2022		2022		2022		2021			2021			2022		2021
Net income and earnings per share excluding significant items
Reported Net Income	$	22,656	$	20,283	$	22,311	$	17,189		$	25,306		$	65,250	$	75,596
Significant items:
Impairment charges on assets held for sale and ROU asset		—		—		—		12,449			1,434			—		3,981
Tax benefit		—		—		—		(3,377	)		(390	)		—		(1,085	)
Adjusted Net Income	$	22,656	$	20,283	$	22,311	$	26,261		$	26,350		$	65,250	$	78,492
Reported Diluted Earnings per Share	$	0.61	$	0.54	$	0.58	$	0.45		$	0.66		$	1.73	$	1.95
Significant items:
Impairment charges on assets held for sale and ROU asset		—		—		—		0.33			0.04			—		0.10
Tax benefit		—		—		—		(0.09	)		(0.01	)		—		(0.03	)
Adjusted Diluted Earnings per Share	$	0.61	$	0.54	$	0.58	$	0.69		$	0.69		$	1.73	$	2.02

Byline Bancorp, Inc.

Page 16 of 17

BYLINE BANCORP, INC. AND SUBSIDIARIES

RECONCILIATION OF NON-GAAP FINANCIAL MEASURES (continued) (unaudited)


	As of or For the Three Months Ended												As of or For the Nine Months Ended
(dollars in thousands, except per share data,	September 30,		June 30,		March 31,		December 31,			September 30,			September 30,		September 30,
ratios annualized, where applicable)	2022		2022		2022		2021			2021			2022		2021
Adjusted non-interest expense:
Non-interest expense	$	46,178	$	43,773	$	44,555	$	58,968		$	44,180		$	134,506	$	126,003
Less: Significant items
Impairment charges on assets held for sale and ROU asset		—		—		—		12,449			1,434			—		3,981
Adjusted non-interest expense	$	46,178	$	43,773	$	44,555	$	46,519		$	42,746		$	134,506	$	122,022
Adjusted non-interest expense excluding amortization of intangible assets:
Adjusted non-interest expense	$	46,178	$	43,773	$	44,555	$	46,519		$	42,746		$	134,506	$	122,022
Less: Amortization of intangible assets		1,611		1,868		1,596		1,738			1,738			5,075		5,335
Adjusted non-interest expense excluding amortization of intangible assets	$	44,567	$	41,905	$	42,959	$	44,781		$	41,008		$	129,431	$	116,687
Pre-tax pre-provision net income:
Pre-tax income	$	30,513	$	26,107	$	28,612	$	23,067		$	33,808		$	85,232	$	101,145
Add: Provision/(recapture) for loan and lease losses		4,176		5,908		4,995		(1,293	)		352			15,079		2,750
Pre-tax pre-provision net income	$	34,689	$	32,015	$	33,607	$	21,774		$	34,160		$	100,311	$	103,895
Adjusted pre-tax pre-provision net income:
Pre-tax pre-provision net income	$	34,689	$	32,015	$	33,607	$	21,774		$	34,160		$	100,311	$	103,895
Impairment charges on assets held for sale and ROU asset		—		—		—		12,449			1,434			—		3,981
Adjusted pre-tax pre-provision net income	$	34,689	$	32,015	$	33,607	$	34,223		$	35,594		$	100,311	$	107,876
Tax equivalent net interest income
Net interest income	$	68,875	$	61,627	$	58,736	$	61,728		$	59,845		$	189,238	$	174,659
Add: Tax-equivalent adjustment		228		237		236		256			264			701		783
Net interest income, fully taxable equivalent	$	69,103	$	61,864	$	58,972	$	61,984		$	60,109		$	189,939	$	175,442
Total revenue:
Net interest income	$	68,875	$	61,627	$	58,736	$	61,728		$	59,845		$	189,238	$	174,659
Add: Non-interest income		11,992		14,161		19,426		19,014			18,495			45,579		55,239
Total revenue	$	80,867	$	75,788	$	78,162	$	80,742		$	78,340		$	234,817	$	229,898
Tangible common stockholders' equity:
Total stockholders' equity	$	747,565	$	765,161	$	788,671	$	836,382		$	824,418		$	747,565	$	824,418
Less: Preferred stock		—		—		—		10,438			10,438			—		10,438
Less: Goodwill and other intangibles		160,484		162,094		163,962		165,558			167,296			160,484		167,296
Tangible common stockholders' equity	$	587,081	$	603,067	$	624,709	$	660,386		$	646,684		$	587,081	$	646,684
Tangible assets:
Total assets	$	7,277,587	$	7,131,717	$	6,834,636	$	6,696,172		$	6,704,451		$	7,277,587	$	6,704,451
Less: Goodwill and other intangibles		160,484		162,094		163,962		165,558			167,296			160,484		167,296
Tangible assets	$	7,117,103	$	6,969,623	$	6,670,674	$	6,530,614		$	6,537,155		$	7,117,103	$	6,537,155
Average tangible common stockholders' equity:
Average total stockholders' equity	$	775,358	$	780,652	$	832,161	$	838,975		$	823,754		$	795,849	$	813,629
Less: Average preferred stock		—		—		9,974		10,438			10,438			3,288		10,438
Less: Average goodwill and other intangibles		161,292		163,068		164,837		166,396			168,140			163,053		169,934
Average tangible common stockholders' equity	$	614,066	$	617,584	$	657,350	$	662,141		$	645,176		$	629,508	$	633,257
Average tangible assets:
Average total assets	$	7,145,189	$	6,975,725	$	6,705,986	$	6,699,069		$	6,560,868		$	6,943,909	$	6,622,943
Less: Average goodwill and other intangibles		161,292		163,068		164,837		166,396			168,140			163,053		169,934
Average tangible assets	$	6,983,897	$	6,812,657	$	6,541,149	$	6,532,673		$	6,392,728		$	6,780,856	$	6,453,009
Tangible net income available to common stockholders:
Net income available to common stockholders	$	22,656	$	20,283	$	22,115	$	16,993		$	25,110		$	65,054	$	75,009
Add: After-tax intangible asset amortization		1,174		1,361		1,163		1,266			1,265			3,698		3,881
Tangible net income available to common stockholders	$	23,830	$	21,644	$	23,278	$	18,259		$	26,375		$	68,752	$	78,890
Adjusted tangible net income available to common stockholders:
Tangible net income available to common stockholders	$	23,830	$	21,644	$	23,278	$	18,259		$	26,375		$	68,752	$	78,890
Impairment charges on assets held for sale and ROU asset		—		—		—		12,449			1,434			—		3,981
Tax benefit on significant items		—		—		—		(3,377	)		(390	)		—		(1,085	)
Adjusted tangible net income available to common stockholders	$	23,830	$	21,644	$	23,278	$	27,331		$	27,419		$	68,752	$	81,786

Byline Bancorp, Inc.

Page 17 of 17

BYLINE BANCORP, INC. AND SUBSIDIARIES

RECONCILIATION OF NON-GAAP FINANCIAL MEASURES (continued) (unaudited)


	As of or For the Three Months Ended															As of or For the Nine Months Ended
(dollars in thousands, except share and per share	September 30,			June 30,			March 31,			December 31,			September 30,			September 30,			September 30,
data, ratios annualized, where applicable)	2022			2022			2022			2021			2021			2022			2021
Pre-tax pre-provision return on average assets:
Pre-tax pre-provision net income	$	34,689		$	32,015		$	33,607		$	21,774		$	34,160		$	100,311		$	103,895
Average total assets		7,145,189			6,975,725			6,705,986			6,699,069			6,560,868			6,943,909			6,622,943
Pre-tax pre-provision return on average assets		1.93	%		1.84	%		2.03	%		1.29	%		2.07	%		1.93	%		2.10	%
Adjusted pre-tax pre-provision return on average assets:
Adjusted pre-tax pre-provision net income	$	34,689		$	32,015		$	33,607		$	34,223		$	35,594		$	100,311		$	107,876
Average total assets		7,145,189			6,975,725			6,705,986			6,699,069			6,560,868			6,943,909			6,622,943
Adjusted pre-tax pre-provision return on average assets		1.93	%		1.84	%		2.03	%		2.03	%		2.15	%		1.93	%		2.18	%
Net interest margin, fully taxable equivalent
Net interest income, fully taxable equivalent	$	69,103		$	61,864		$	58,972		$	61,984		$	60,109		$	189,939		$	175,442
Total average interest-earning assets		6,760,623			6,573,878			6,253,889			6,189,762			6,076,065			6,531,320			6,135,051
Net interest margin, fully taxable equivalent		4.05	%		3.77	%		3.82	%		3.97	%		3.92	%		3.88	%		3.82	%
Non-interest income to total revenues:
Non-interest income	$	11,992		$	14,161		$	19,426		$	19,014		$	18,495		$	45,579		$	55,239
Total revenues		80,867			75,788			78,162			80,742			78,340			234,817			229,898
Non-interest income to total revenues		14.83	%		18.69	%		24.85	%		23.55	%		23.61	%		19.41	%		24.03	%
Adjusted non-interest expense to average assets:
Adjusted non-interest expense	$	46,178		$	43,773		$	44,555		$	46,519		$	42,746		$	134,506		$	122,022
Average total assets		7,145,189			6,975,725			6,705,986			6,699,069			6,560,868			6,943,909			6,622,943
Adjusted non-interest expense to average assets		2.56	%		2.52	%		2.69	%		2.76	%		2.58	%		2.59	%		2.46	%
Adjusted efficiency ratio:
Adjusted non-interest expense excluding amortization of intangible assets	$	44,567		$	41,905		$	42,959		$	44,781		$	41,008		$	129,431		$	116,687
Total revenues		80,867			75,788			78,162			80,742			78,340			234,817			229,898
Adjusted efficiency ratio		55.11	%		55.29	%		54.96	%		55.46	%		52.35	%		55.12	%		50.76	%
Adjusted return on average assets:
Adjusted net income	$	22,656		$	20,283		$	22,311		$	26,261		$	26,350		$	65,250		$	78,492
Average total assets		7,145,189			6,975,725			6,705,986			6,699,069			6,560,868			6,943,909			6,622,943
Adjusted return on average assets		1.26	%		1.17	%		1.35	%		1.56	%		1.59	%		1.26	%		1.58	%
Adjusted return on average stockholders' equity:
Adjusted net income	$	22,656		$	20,283		$	22,311		$	26,261		$	26,350		$	65,250		$	78,492
Average stockholders' equity		775,358			780,652			832,161			838,975			823,754			795,849			813,629
Adjusted return on average stockholders' equity		11.59	%		10.42	%		10.87	%		12.42	%		12.69	%		10.96	%		12.90	%
Tangible common equity to tangible assets:
Tangible common equity	$	587,081		$	603,067		$	624,709		$	660,386		$	646,684		$	587,081		$	646,684
Tangible assets		7,117,103			6,969,623			6,670,674			6,530,614			6,537,155			7,117,103			6,537,155
Tangible common equity to tangible assets		8.25	%		8.65	%		9.36	%		10.11	%		9.89	%		8.25	%		9.89	%
Return on average tangible common stockholders' equity:
Tangible net income available to common stockholders	$	23,830		$	21,644		$	23,278		$	18,259		$	26,375		$	68,752		$	78,890
Average tangible common stockholders' equity		614,066			617,584			657,350			662,141			645,176			629,508			633,257
Return on average tangible common stockholders' equity		15.40	%		14.06	%		14.36	%		10.94	%		16.22	%		14.60	%		16.66	%
Adjusted return on average tangible common stockholders' equity:
Adjusted tangible net income available to common stockholders	$	23,830		$	21,644		$	23,278		$	27,331		$	27,419		$	68,752		$	81,786
Average tangible common stockholders' equity		614,066			617,584			657,350			662,141			645,176			629,508			633,257
Adjusted return on average tangible common stockholders' equity		15.40	%		14.06	%		14.36	%		16.38	%		16.86	%		14.60	%		17.27	%
Tangible book value per share:
Tangible common equity	$	587,081		$	603,067		$	624,709		$	660,386		$	646,684		$	587,081		$	646,684
Common shares outstanding		37,465,902			37,669,102			37,811,582			37,713,903			37,690,087			37,465,902			37,690,087
Tangible book value per share	$	15.67		$	16.01		$	16.52		$	17.51		$	17.16		$	15.67		$	17.16



001-38139		36-3012593
(Commission File Number)		(I.R.S. Employer Identification No.)

180 North LaSalle Street, Suite 300
Chicago, Illinois		60601
(Address of Principal Executive Offices)		(Zip Code)


Title of each class	Trading Symbol(s)	Name of each exchange on which registered
Common Stock	BY	New York Stock Exchange



Exhibit No.	Description

99.1		Third Quarter 2022 financial results press release, dated October 27, 2022
99.2		Slide Presentation regarding third quarter 2022 financial results
104		Cover Page Interactive Data File (embedded within the Inline XBRL document)



	BYLINE BANCORP, INC.

Date: October 27, 2022	By:	/s/ Roberto R. Herencia
	Name:	Roberto R. Herencia
	Title:	Executive Chairman and Chief Executive Officer


☐	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))


Item 9.01.	Financial Statements and Exhibits.