8-K
Byline Bancorp, Inc. (BY)
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT
PURSUANT TO SECTION 13 OR 15(d)
OF THE SECURITIES EXCHANGE ACT OF 1934
Date of Report (Date of earliest event reported): April 27, 2023
BYLINE BANCORP, INC.
(Exact Name of Registrant as Specified in Its Charter)
Delaware
(State or Other Jurisdiction
of Incorporation)
| 001-38139 | 36-3012593 |
|---|---|
| (Commission<br><br>File Number) | (I.R.S. Employer<br><br>Identification No.) |
| 180 North LaSalle Street, Suite 300 | |
| Chicago, Illinois | 60601 |
| (Address of Principal Executive Offices) | (Zip Code) |
(773) 244-7000
(Registrant’s Telephone Number, Including Area Code)
Not Applicable
(Former Name or Former Address, if Changed Since Last Report)
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):
| ☐ | 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 |
|---|---|---|
| Common Stock | BY | New York Stock Exchange |
Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).
Emerging growth company ☐
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐
| Item 2.02. | Results of Operations and Financial Condition. |
|---|
On April 27, 2023, Byline Bancorp, Inc., (“Byline" or the "Company”) issued a press release announcing its financial results for the first quarter ended March 31, 2023. A copy of the press release is attached as Exhibit 99.1 and is incorporated herein by reference.
On April 27, 2023, the Company made available on its website a slide presentation regarding the Company’s first quarter 2023 financial results, which will be used as part of a publicly accessible conference call on April 28, 2023. A copy of the slide presentation is attached as Exhibit 99.2 and is incorporated herein by reference.
The information included in Item 2.02 this Current Report on Form 8-K (including the information in the attached exhibits 99.1 and 99.2) is being furnished and shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended, nor shall it be deemed incorporated by reference in any filing under the Securities Act of 1933, as amended, except as shall be expressly set forth by specific reference in any such filing.
| Item 9.01. | Financial Statements and Exhibits. |
|---|
(d) Exhibits.
| Exhibit<br><br>No. | Description | |
|---|---|---|
| 99.1 | First Quarter 2023 financial results press release, dated April 27, 2023 | |
| 99.2 | Slide Presentation regarding first quarter 2023 financial results | |
| 104 | Cover Page Interactive Data File (embedded within the Inline XBRL document) |
Forward-Looking Statements
This communication contains forward-looking statements within the meaning of the U.S. federal securities laws. Forward-looking statements include, without limitation, statements concerning plans, estimates, calculations, forecasts and projections with respect to the anticipated future performance of the Company. These statements are often, but not always, made through the use of words or phrases such as ‘‘may’’, ‘‘might’’, ‘‘should’’, ‘‘could’’, ‘‘predict’’, ‘‘potential’’, ‘‘believe’’, ‘‘expect’’, ‘‘continue’’, ‘‘will’’, ‘‘anticipate’’, ‘‘seek’’, ‘‘estimate’’, ‘‘intend’’, ‘‘plan’’, ‘‘projection’’, ‘‘would’’, ‘‘annualized’’, “target” and ‘‘outlook’’, or the negative version of those words or other comparable words or phrases of a future or forward-looking nature. Forward-looking statements involve estimates and known and unknown risks, and reflect various assumptions and involve elements of subjective judgement and analysis, which may or may not prove to be correct, and which are subject to uncertainties and contingencies outside the control of Byline and its respective affiliates, directors, employees and other representatives, which could cause actual results to differ materially from those presented in this communication.
No representations, warranties or guarantees are or will be made by Byline as to the reliability, accuracy or completeness of any forward-looking statements contained in this communication or that such forward-looking statements are or will remain based on reasonable assumptions. You should not place undue reliance on any forward-looking statements contained in this communication.
Certain risks and important factors that could affect Byline’s future results are identified in our Annual Report on Form 10-K and other reports we file with the Securities and Exchange Commission, including among other things under the heading “Risk Factors” in our Annual Report on Form 10-K for the year ended December 31, 2022. Any forward-looking statement speaks only as of the date on which it is made, and Byline undertakes no obligation to update any forward-looking statement, whether to reflect events or circumstances after the date on which the statement is made, to reflect new information or the occurrence of unanticipated events, or otherwise unless required under the federal securities laws.
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.
| BYLINE BANCORP, INC. | ||
|---|---|---|
| Date: April 27, 2023 | By: | /s/ Roberto R. Herencia |
| Name: | Roberto R. Herencia | |
| Title: | Executive Chairman and Chief Executive Officer |
EX-99
Exhibit 99.1
Byline Bancorp, Inc. Reports First Quarter 2023 Financial Results
Select First Quarter 2023 Financial Highlights
• Net income of $23.9 million, or $0.64 per diluted share
• Pre-tax pre-provision return on average assets of 2.32%1
• Return on average assets of 1.32%; Return on average tangible common equity of 16.20%1
• Net interest margin of 4.38%; down one bp from the previous quarter
• Efficiency ratio of 52.10%
• Total loans and leases of $5.5 billion, quarterly increase of $74.6 million
• Total deposits of $5.8 billion, quarterly increase of $117.5 million
• Tangible Common Equity to Tangible Assets of 8.66%1
• Common Equity Tier 1 to Risk Weighted Assets of 10.27%
Chicago, IL, April 27, 2023 – 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 $23.9 million, or $0.64 per diluted share, for the first quarter of 2023 compared with net income of $24.4 million, or $0.65 per diluted share, for the fourth quarter of 2022, and net income of $21.4 million2, or $0.56 per diluted share, for the first quarter 2022.
Roberto R. Herencia, Executive Chairman and Chief Executive Officer of Byline Bancorp, Inc., commented, “Our first quarter results reflect the resiliency of our diversified business model and prudent management, notwithstanding continued rate increases and a challenging operating environment. We remain focused on executing our strategy, supporting new and existing customers and growing the value of our franchise. I am proud of the way our bankers navigated the recent turmoil within our industry, with a focus on serving our customers and communities.”
Alberto J. Paracchini, President of Byline Bancorp, Inc. added, “We delivered solid financial results for the first quarter as our performance was both balanced and strong during a period of heightened volatility and uncertainty. During the quarter, we increased our capital position and we believe we continue to maintain a high level of liquidity given the environment. At the same time, we grew revenue by 17% year-over-year, controlled non-interest expenses, achieved positive operating leverage, maintained credit quality and delivered strong profitability. Looking forward, we believe our diversified franchise, and strong capital and liquidity, position us well for the remainder of 2023.”
Board Declares Cash Dividend of $0.09 per Share
On April 25, 2023, the Company's Board of Directors declared a cash dividend of $0.09 per share, payable on May 23, 2023, to stockholders of record of the Company's common stock as of May 9, 2023.
(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.
(2) Recast due to the adoption of ASU 2016-13 Financial Instruments - Credit Losses on December 31, 2022, which was applied retrospectively to January 1, 2022. Results for periods beginning after September 30, 2022 are presented under the new standard, while prior quarters previously reported are recast as if the new standard had been applied since January 1, 2022. Refer to our Annual Report on Form 10-K for the year ended December 31, 2022 for additional information on the adoption of the standard.
Byline Bancorp, Inc.
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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 | ||||||||||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| March 31, 2023 | December 31, 2022 | Recast March 31, 2022 | ||||||||||||||||||||||
| (dollars in thousands) | Average<br>Balance(5) | Interest<br>Inc / Exp | Avg.<br>Yield /<br>Rate | Average<br>Balance(5) | Interest<br>Inc / Exp | Avg.<br>Yield /<br>Rate | Average<br>Balance(5) | Interest<br>Inc / Exp | Avg.<br>Yield /<br>Rate | |||||||||||||||
| ASSETS | ||||||||||||||||||||||||
| Cash and cash equivalents | $ | 97,578 | $ | 442 | 1.84 | % | $ | 89,367 | $ | 234 | 1.04 | % | $ | 74,822 | $ | 29 | 0.16 | % | ||||||
| Loans and leases(1) | 5,484,372 | 92,343 | 6.83 | % | 5,389,210 | $ | 85,720 | 6.31 | % | 4,669,047 | 55,138 | 4.79 | % | |||||||||||
| Taxable securities | 1,275,377 | 6,431 | 2.04 | % | 1,288,750 | $ | 7,043 | 2.17 | % | 1,339,345 | 5,358 | 1.62 | % | |||||||||||
| Tax-exempt securities(2) | 151,817 | 994 | 2.65 | % | 155,562 | $ | 1,021 | 2.60 | % | 169,652 | 1,124 | 2.69 | % | |||||||||||
| Total interest-earning assets | $ | 7,009,144 | $ | 100,210 | 5.80 | % | $ | 6,922,889 | $ | 94,018 | 5.39 | % | $ | 6,252,866 | $ | 61,649 | 4.00 | % | ||||||
| Allowance for credit losses - <br> loans and leases | (84,321 | ) | (81,815 | ) | (68,058 | ) | ||||||||||||||||||
| All other assets | 420,328 | 424,979 | 512,668 | |||||||||||||||||||||
| TOTAL ASSETS | $ | 7,345,151 | $ | 7,266,053 | $ | 6,697,476 | ||||||||||||||||||
| LIABILITIES AND STOCKHOLDERS’<br> EQUITY | ||||||||||||||||||||||||
| Deposits | ||||||||||||||||||||||||
| Interest checking | $ | 606,008 | $ | 2,494 | 1.67 | % | $ | 596,627 | $ | 1,902 | 1.27 | % | $ | 579,297 | $ | 178 | 0.12 | % | ||||||
| Money market accounts | 1,465,677 | 7,728 | 2.14 | % | 1,472,050 | 5,458 | 1.47 | % | 1,255,431 | 474 | 0.15 | % | ||||||||||||
| Savings | 613,590 | 227 | 0.15 | % | 647,536 | 243 | 0.15 | % | 649,269 | 76 | 0.05 | % | ||||||||||||
| Time deposits | 966,409 | 5,849 | 2.45 | % | 788,856 | 3,007 | 1.51 | % | 662,080 | 359 | 0.22 | % | ||||||||||||
| Total interest-bearing <br> deposits | 3,651,684 | 16,298 | 1.81 | % | 3,505,069 | 10,610 | 1.20 | % | 3,146,077 | 1,087 | 0.14 | % | ||||||||||||
| Other borrowings | 573,433 | 5,852 | 4.14 | % | 514,518 | 4,598 | 3.55 | % | 290,545 | 395 | 0.55 | % | ||||||||||||
| Federal funds purchased | 2,778 | 36 | 5.30 | % | — | — | 0.00 | % | — | — | 0.00 | % | ||||||||||||
| Subordinated notes and <br> debentures | 111,101 | 2,098 | 7.66 | % | 110,947 | 1,992 | 7.12 | % | 110,490 | 1,600 | 5.87 | % | ||||||||||||
| Total borrowings | 687,312 | 7,986 | 4.71 | % | 625,465 | 6,590 | 4.18 | % | 401,035 | 1,995 | 2.02 | % | ||||||||||||
| Total interest-bearing liabilities | $ | 4,338,996 | $ | 24,284 | 2.27 | % | $ | 4,130,534 | $ | 17,200 | 1.65 | % | $ | 3,547,112 | $ | 3,082 | 0.35 | % | ||||||
| Non-interest-bearing <br> demand deposits | 2,076,613 | 2,235,464 | 2,248,035 | |||||||||||||||||||||
| Other liabilities | 145,253 | 151,763 | 80,276 | |||||||||||||||||||||
| Total stockholders’ equity | 784,289 | 748,292 | 822,053 | |||||||||||||||||||||
| TOTAL LIABILITIES AND<br> STOCKHOLDERS’ EQUITY | $ | 7,345,151 | $ | 7,266,053 | $ | 6,697,476 | ||||||||||||||||||
| Net interest spread(3) | 3.53 | % | 3.74 | % | 3.65 | % | ||||||||||||||||||
| Net interest income, fully <br> taxable equivalent | $ | 75,926 | $ | 76,818 | $ | 58,567 | ||||||||||||||||||
| Net interest margin, fully <br> taxable equivalent(2)(4) | 4.39 | % | 4.40 | % | 3.80 | % | ||||||||||||||||||
| Less: Tax-equivalent adjustment | 208 | 0.01 | % | 214 | 0.01 | % | 236 | 0.02 | % | |||||||||||||||
| Net interest income | $ | 75,718 | $ | 76,604 | $ | 58,331 | ||||||||||||||||||
| Net interest margin(4) | 4.38 | % | 4.39 | % | 3.78 | % | ||||||||||||||||||
| Net loan accretion impact <br> on margin | $ | 729 | 0.04 | % | $ | 369 | 0.02 | % | $ | 1,187 | 0.08 | % |
(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:
| March 31, 2023 | ||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Three Months Ended | Change from | |||||||||||
| Recast | ||||||||||||
| March 31, | December 31, | March 31, | December 31, | March 31, | ||||||||
| (dollars in thousands) | 2023 | 2022 | 2022 | 2022 | 2022 | |||||||
| INTEREST AND DIVIDEND INCOME | ||||||||||||
| Interest and fees on loans and leases | $ | 92,343 | $ | 85,720 | $ | 55,138 | 7.7 | % | 67.5 | % | ||
| Interest on securities | 6,600 | 6,569 | 6,155 | 0.5 | % | 7.2 | % | |||||
| Other interest and dividend income | 1,059 | 1,515 | 120 | (30.1 | )% | 781.5 | % | |||||
| Total interest and dividend income | 100,002 | 93,804 | 61,413 | 6.6 | % | 62.8 | % | |||||
| INTEREST EXPENSE | ||||||||||||
| Deposits | 16,298 | 10,610 | 1,087 | 53.6 | % | 1399.7 | % | |||||
| Other borrowings | 5,888 | 4,598 | 395 | 28.1 | % | 1391.2 | % | |||||
| Subordinated notes and debentures | 2,098 | 1,992 | 1,600 | 5.3 | % | 31.1 | % | |||||
| Total interest expense | 24,284 | 17,200 | 3,082 | 41.2 | % | 688.1 | % | |||||
| Net interest income | $ | 75,718 | $ | 76,604 | $ | 58,331 | (1.2 | )% | 29.8 | % |
Net interest income for the first quarter of 2023 was $75.7 million, a decrease of $886,000, or 1.2%, from the fourth quarter of 2022. The decrease was driven by day count and rising interest rates.
The decrease in net interest income was primarily due to:
• An increase of $5.7 million in deposit interest expense mainly due to higher average balances and higher rates paid on time deposits and money market accounts; and
• An increase of $1.3 million in interest expense on other borrowings due to higher rates paid and average balances on borrowings.
Partially offset by:
• An increase of $6.6 million in interest income and fees on loans and leases due to higher yields on loans and leases.
Tax-equivalent net interest margin for the first quarter of 2023 was 4.39%, a decrease of one basis point compared to the fourth quarter of 2022. Total net loan accretion income impact on margin contributed four basis points to the net interest margin for the first quarter of 2023 compared to two basis points for the fourth quarter of 2022.
The average cost of total deposits was 1.15% for the first quarter of 2023, an increase of 42 basis points compared to the fourth quarter of 2022. Average non-interest-bearing demand deposits were 36.3% of average total deposits for the first quarter of 2023 compared to 38.9% during the fourth quarter of 2022.
Provision for Credit Losses
The provision for credit losses was $9.8 million for the first quarter of 2023, an increase of $4.0 million compared to $5.8 million for the fourth quarter of 2022. The provision for credit losses is comprised of a provision for loan and lease losses of $9.7 million and a provision for unfunded commitments of $113,000. The increase in provision during the first quarter of 2023 was primarily driven by increases in specific reserves on loans that were individually evaluated for impairment, changes in expected losses driven by macro-economic factors, and growth in the loan and lease portfolio.
Byline Bancorp, Inc.
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Non-interest Income
The following table presents the components of non-interest income for the periods indicated:
| March 31, 2023 | ||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Three Months Ended | Change from | |||||||||||||
| Recast | ||||||||||||||
| March 31, | December 31, | March 31, | December 31, | March 31, | ||||||||||
| (dollars in thousands) | 2023 | 2022 | 2022 | 2022 | 2022 | |||||||||
| NON-INTEREST INCOME | ||||||||||||||
| Fees and service charges on deposits | $ | 2,120 | $ | 2,081 | $ | 1,884 | 1.9 | % | 12.5 | % | ||||
| Loan servicing revenue | 3,380 | 3,293 | 3,380 | 2.7 | % | 0.0 | % | |||||||
| Loan servicing asset revaluation | 656 | (3,534 | ) | (1,231 | ) | NM | (153.3 | )% | ||||||
| ATM and interchange fees | 1,063 | 1,250 | 1,049 | (14.9 | )% | 1.3 | % | |||||||
| Change in fair value of equity securities, net | 350 | 710 | (35 | ) | (50.6 | )% | NM | |||||||
| Net gains on sales of loans | 5,148 | 5,509 | 10,827 | (6.6 | )% | (52.4 | )% | |||||||
| Wealth management and trust income | 924 | 864 | 1,048 | 7.0 | % | (11.9 | )% | |||||||
| Other non-interest income | 1,504 | 1,282 | 2,621 | 17.2 | % | (42.6 | )% | |||||||
| Total non-interest income | $ | 15,145 | $ | 11,455 | $ | 19,543 | 32.2 | % | (22.5 | )% |
Non-interest income for the first quarter of 2023 was $15.1 million, an increase of $3.7 million, or 32.2%, compared to $11.5 million for the fourth quarter of 2022.
The increase in total non-interest income was primarily due to:
• An increase of $4.2 million in the valuation of the loan servicing asset from favorable fair value adjustments due to improvements in market conditions.
Partially offset by:
• A decrease of $361,000 in the net gain on sales of loans, due to lower volume of loan sales.
During the first quarter of 2023, we sold $72.2 million of U.S. government guaranteed loans compared to $86.0 million during the fourth quarter of 2022.
Non-interest Expense
The following table presents the components of non-interest expense for the periods indicated:
| March 31, 2023 | ||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Three Months Ended | Change from | |||||||||||||
| Recast | ||||||||||||||
| March 31, | December 31, | March 31, | December 31, | March 31, | ||||||||||
| (dollars in thousands) | 2023 | 2022 | 2022 | 2022 | 2022 | |||||||||
| NON-INTEREST EXPENSE | ||||||||||||||
| Salaries and employee benefits | $ | 30,394 | $ | 31,808 | $ | 28,959 | (4.4 | )% | 5.0 | % | ||||
| Occupancy and equipment expense, net | 4,444 | 3,532 | 5,128 | 25.8 | % | (13.3 | )% | |||||||
| Impairment charge on assets held for sale | 20 | 372 | — | (94.8 | )% | NM | ||||||||
| Loan and lease related expenses | 963 | 1,126 | (891 | ) | (14.4 | )% | (208.1 | )% | ||||||
| Legal, audit and other professional fees | 3,114 | 3,204 | 2,600 | (2.8 | )% | 19.8 | % | |||||||
| Data processing | 3,783 | 3,406 | 3,186 | 11.1 | % | 18.7 | % | |||||||
| Net (gain) loss recognized on other real estate <br> owned and other related expenses | (103 | ) | 221 | 54 | NM | NM | ||||||||
| Other intangible assets amortization expense | 1,455 | 1,596 | 1,596 | (8.8 | )% | (8.8 | )% | |||||||
| Other non-interest expense | 4,730 | 5,235 | 3,324 | (9.6 | )% | 42.3 | % | |||||||
| Total non-interest expense | $ | 48,800 | $ | 50,500 | $ | 43,956 | (3.4 | )% | 11.0 | % |
Non-interest expense for the first quarter of 2023 was $48.8 million, a decrease of $1.7 million, or 3.4%, from $50.5 million for the fourth quarter of 2022.
The decrease in total non-interest expense was primarily due to:
• A decrease of $1.4 million in salaries and employee benefits mainly due to decreases in incentive compensation, offset by increases in payroll taxes; and
• A decrease of $505,000 in other non-interest expense, as the prior quarter included net losses of $480,000 in leasehold improvements.
Byline Bancorp, Inc.
Page 5 of 16
Partially offset by:
• An increase of $912,000 in occupancy and equipment expense, net, primarily due to increases in real estate taxes and building maintenance; and
• An increase of $377,000 in data processing mainly due to merger related expenses.
Our efficiency ratio was 52.10% for the first quarter of 2023 compared to 55.53% for the fourth quarter of 2022.
INCOME TAXES
We recorded income tax expense of $8.3 million during the first quarter of 2023, compared to $7.4 million during the fourth quarter of 2022. The effective tax rate was 25.7% and 23.2% for the first quarter of 2023 and fourth quarter of 2022, respectively. The increase in the effective tax rate is primarily due to the effect of a prior quarter tax benefit related to share-based compensation.
Byline Bancorp, Inc.
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STATEMENTS OF FINANCIAL CONDITION
Total assets were $7.5 billion at March 31, 2023, an increase of $167.4 million compared to $7.4 billion at December 31, 2022.
The current quarter increase was primarily due to:
• An increase in cash and cash equivalents of $104.9 million primarily to augment liquidity levels given the environment and support customer activities; and
• An increase in net loans and leases of $85.5 million primarily due to growth in the originated loan and lease portfolio.
Partially offset by:
• A decrease in loans held for sale of $19.4 million, driven mainly by lower volume of government guaranteed loans.
The following table shows our allocation of the originated, purchase credit deteriorated, and non-credit deteriorated loans and leases at the dates indicated:
| Recast | ||||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| March 31, 2023 | December 31, 2022 | March 31, 2022 | ||||||||||||||||
| (dollars in thousands) | Amount | % of Total | Amount | % of Total | Amount | % of Total | ||||||||||||
| Originated loans and leases | ||||||||||||||||||
| Commercial real estate | $ | 1,749,808 | 31.7 | % | $ | 1,712,152 | 31.6 | % | $ | 1,530,703 | 32.0 | % | ||||||
| Residential real estate | 441,291 | 8.0 | % | 426,226 | 7.9 | % | 399,852 | 8.3 | % | |||||||||
| Construction, land development, and<br> other land | 446,763 | 8.1 | % | 438,617 | 8.1 | % | 351,518 | 7.3 | % | |||||||||
| Commercial and industrial | 2,060,537 | 37.4 | % | 2,029,855 | 37.5 | % | 1,697,555 | 35.5 | % | |||||||||
| Paycheck Protection Program | 730 | 0.0 | % | 761 | 0.0 | % | 36,260 | 0.8 | % | |||||||||
| Installment and other | 1,603 | 0.0 | % | 1,410 | 0.0 | % | 946 | 0.0 | % | |||||||||
| Leasing financing receivables | 552,174 | 10.0 | % | 521,689 | 9.6 | % | 379,527 | 7.9 | % | |||||||||
| Total originated loans and leases | $ | 5,252,906 | 95.2 | % | $ | 5,130,710 | 94.7 | % | $ | 4,396,361 | 91.8 | % | ||||||
| Purchased credit deteriorated loans | ||||||||||||||||||
| Commercial real estate | $ | 39,000 | 0.7 | % | $ | 45,143 | 0.8 | % | $ | 62,480 | 1.3 | % | ||||||
| Residential real estate | 30,070 | 0.6 | % | 32,228 | 0.6 | % | 46,576 | 1.0 | % | |||||||||
| Construction, land development, and<br> other land | 345 | 0.0 | % | 372 | 0.0 | % | 1,383 | 0.0 | % | |||||||||
| Commercial and industrial | 1,745 | 0.0 | % | 2,192 | 0.0 | % | 3,884 | 0.1 | % | |||||||||
| Installment and other | 134 | 0.0 | % | 140 | 0.0 | % | 161 | 0.0 | % | |||||||||
| Total purchased credit deteriorated loans | $ | 71,294 | 1.3 | % | $ | 80,075 | 1.4 | % | $ | 114,484 | 2.4 | % | ||||||
| Acquired non-credit-deteriorated loans and leases | ||||||||||||||||||
| Commercial real estate | $ | 140,576 | 2.6 | % | $ | 152,193 | 2.8 | % | $ | 185,107 | 3.9 | % | ||||||
| Residential real estate | 27,975 | 0.5 | % | 31,508 | 0.6 | % | 48,173 | 1.0 | % | |||||||||
| Construction, land development, and<br> other land | — | 0.0 | % | — | 0.0 | % | 196 | 0.0 | % | |||||||||
| Commercial and industrial | 20,793 | 0.4 | % | 24,266 | 0.5 | % | 37,882 | 0.8 | % | |||||||||
| Installment and other | 85 | 0.0 | % | 209 | 0.0 | % | 247 | 0.0 | % | |||||||||
| Leasing financing receivables | 1,703 | 0.0 | % | 2,297 | 0.0 | % | 5,157 | 0.1 | % | |||||||||
| Total acquired non-credit-deteriorated <br> loans and leases | $ | 191,132 | 3.5 | % | $ | 210,473 | 3.9 | % | $ | 276,762 | 5.8 | % | ||||||
| Total loans and leases | $ | 5,515,332 | 100.0 | % | $ | 5,421,258 | 100.0 | % | $ | 4,787,607 | 100.0 | % | ||||||
| Allowance for credit losses - loans and leases | (90,465 | ) | (81,924 | ) | (72,107 | ) | ||||||||||||
| Total loans and leases, net of allowance for<br> credit losses - loans and leases | $ | 5,424,867 | $ | 5,339,334 | $ | 4,715,500 |
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 and other real estate owned at the dates indicated:
| March 31, 2023 | |||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Recast | Change from | ||||||||||||||
| (dollars in thousands) | March 31, 2023 | December 31, 2022 | March 31, 2022 | December 31, 2022 | March 31, 2022 | ||||||||||
| Non-performing assets: | |||||||||||||||
| Non-accrual loans and leases | $ | 46,536 | $ | 36,027 | $ | 33,236 | 29.2 | % | 40.0 | % | |||||
| Past due loans and leases 90 days or more<br> and still accruing interest | — | — | — | —% | —% | ||||||||||
| Total non-performing loans and leases | $ | 46,536 | $ | 36,027 | $ | 33,236 | 29.2 | % | 40.0 | % | |||||
| Other real estate owned | 3,712 | 4,717 | 2,221 | (21.3 | )% | 67.1 | % | ||||||||
| Total non-performing assets | $ | 50,248 | $ | 40,744 | $ | 35,457 | 23.3 | % | 41.7 | % | |||||
| Total non-performing loans and leases as a<br> percentage of total loans and leases | 0.84 | % | 0.66 | % | 0.69 | % | |||||||||
| Total non-performing assets as a percentage<br> of total assets | 0.67 | % | 0.55 | % | 0.52 | % | |||||||||
| Allowance for credit losses - loans and lease <br> as a percentage of non-performing<br> loans and leases | 194.40 | % | 227.40 | % | 216.96 | % | |||||||||
| Non-performing assets guaranteed by <br> U.S. government: | |||||||||||||||
| Non-accrual loans guaranteed | $ | 2,335 | $ | 2,225 | $ | 1,832 | 5.0 | % | 27.5 | % | |||||
| Past due loans 90 days or more and still<br> accruing interest guaranteed | — | — | — | —% | —% | ||||||||||
| Total non-performing loans guaranteed | $ | 2,335 | $ | 2,225 | $ | 1,832 | 5.0 | % | 27.5 | % | |||||
| Total non-performing loans and leases <br> not guaranteed as a percentage of total <br> loans and leases | 0.80 | % | 0.62 | % | 0.66 | % | |||||||||
| Total non-performing assets not guaranteed<br> as a percentage of total assets | 0.64 | % | 0.52 | % | 0.49 | % |
Variances in non-performing assets were:
• Non-performing loans and leases were $46.5 million at March 31, 2023, an increase of $10.5 million from $36.0 million at December 31, 2022, primarily due to an increase in impaired loans.
• Other real estate owned was $3.7 million at March 31, 2023, a decrease of $1.0 million from $4.7 million at December 31, 2022, primarily due to sales of properties.
Allowance for Credit Losses ("ACL") - Loans and Leases
The following table presents the balance and activity within the allowance for credit losses - loans and leases for the periods indicated:
| Three Months Ended | |||||||||
|---|---|---|---|---|---|---|---|---|---|
| Recast | |||||||||
| March 31, | December 31, | March 31, | |||||||
| (dollars in thousands) | 2023 | 2022 | 2022 | ||||||
| ACL - loans and leases, beginning of period | $ | 81,924 | $ | 79,704 | $ | 55,012 | |||
| Cumulative effect adjustment (ASU 2016-13) | — | — | 12,168 | ||||||
| Provision for credit losses - loans and leases | 9,712 | 5,399 | 5,723 | ||||||
| Net charge-offs - loans and leases | (1,171 | ) | (3,179 | ) | (796 | ) | |||
| ACL - loans and leases, end of period | $ | 90,465 | $ | 81,924 | $ | 72,107 | |||
| Net charge-offs - loans and leases to average total<br> loans and leases held for investment, net before ACL | 0.09 | % | 0.24 | % | 0.07 | % | |||
| Provision for credit losses - loans and leases <br> to net charge-offs - loans and leases during the period | 8.29 | x | 1.70 | x | 7.19 | x |
Net charge-offs of loans and leases during the first quarter of 2023 were $1.2 million, or 0.09% of average loans and leases, on an annualized basis, a decrease of $2.0 million compared to $3.2 million, or 0.24% of average loans
Byline Bancorp, Inc.
Page 8 of 16
and leases, during the fourth quarter of 2022, and an increase of $375,000 from $796,000 or 0.07% of average loans and leases from the comparable period a year ago.
Net charge-offs for the first quarter of 2023 included $1.1 million in the unguaranteed portion of U.S. government guaranteed loans, while net charge-offs for the fourth quarter of 2022 and first quarter of 2022 included $645,000 and $362,000, 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, 2023 | |||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|
| Change from | |||||||||||
| (dollars in thousands) | December 31, 2022 | March 31, 2022 | December 31, 2022 | March 31, 2022 | |||||||
| Non-interest-bearing demand deposits | 1,952,045 | $ | 2,138,645 | $ | 2,281,612 | (8.7 | )% | (14.4 | )% | ||
| Interest-bearing checking accounts | 560,837 | 592,098 | 596,497 | (5.3 | )% | (6.0 | )% | ||||
| Money market demand accounts | 1,453,688 | 1,415,653 | 1,357,679 | 2.7 | % | 7.1 | % | ||||
| Other savings | 590,231 | 625,798 | 659,218 | (5.7 | )% | (10.5 | )% | ||||
| Time deposits (below 250,000) | 1,089,785 | 762,250 | 505,141 | 43.0 | % | 115.7 | % | ||||
| Time deposits (250,000 and above) | 166,066 | 160,677 | 129,955 | 3.4 | % | 27.8 | % | ||||
| Total deposits | 5,812,652 | $ | 5,695,121 | $ | 5,530,102 | 2.1 | % | 5.1 | % |
All values are in US Dollars.
Total deposits increased to $5.8 billion at March 31, 2023 compared to $5.7 billion at December 31, 2022. Non-interest-bearing deposits were 33.6% and 37.6% of total deposits at March 31, 2023 and December 31, 2022, respectively. Estimated total uninsured deposits were $1.6 billion as of March 31, 2023 and December 31, 2022, and represented 27.9% and 28.2% of total deposits, respectively.
The increase in deposits in the current quarter was due to:
• An increase in time deposits of $332.9 million, principally due to deposit mix changes, including migration of deposits from other core deposit accounts to time deposits; and
• An increase in money market demand accounts of $38.0 million, mainly due to inflows of public funds.
Partially offset by:
• A decrease in non-interest-bearing demand deposits of $186.6 million, primarily due to seasonal fluctuations in balances and a competitive interest rate environment.
Total borrowings and other liabilities were $922.0 million at March 31, 2023, an increase of $20.0 million from $902.0 million at December 31, 2022, primarily driven by increases to securities sold under agreements to repurchase due to prevailing market conditions.
Byline Bancorp, Inc.
Page 9 of 16
Stockholders’ Equity
Total stockholders’ equity was $795.7 million at March 31, 2023, an increase of $29.8 million from $765.8 million at December 31, 2022. The increase was primarily due to increased retained earnings due to net income and decreased accumulated other comprehensive loss due to decreased unrealized losses on AFS securities.
The following table presents actual regulatory capital dollar amounts and ratios of the Company and the Bank as of March 31, 2023:
| Actual | Minimum Capital<br>Required | Required to be<br>Considered<br>Well Capitalized | |||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| March 31, 2023 | Amount | Ratio | Amount | Ratio | Amount | Ratio | |||||||||
| Total capital to risk weighted assets: | |||||||||||||||
| Company | $ | 931,827 | 13.19 | % | $ | 565,374 | 8.00 | % | N/A | N/A | |||||
| Bank | 884,077 | 12.55 | % | 563,335 | 8.00 | % | $ | 704,168 | 10.00 | % | |||||
| Tier 1 capital to risk weighted assets: | |||||||||||||||
| Company | $ | 770,494 | 10.90 | % | $ | 424,031 | 6.00 | % | N/A | N/A | |||||
| Bank | 797,744 | 11.33 | % | 422,501 | 6.00 | % | $ | 563,335 | 8.00 | % | |||||
| Common Equity Tier 1 (CET1) to<br> risk weighted assets: | |||||||||||||||
| Company | $ | 725,494 | 10.27 | % | $ | 318,023 | 4.50 | % | N/A | N/A | |||||
| Bank | 797,744 | 11.33 | % | 316,876 | 4.50 | % | $ | 457,709 | 6.50 | % | |||||
| Tier 1 capital to average assets: | |||||||||||||||
| Company | $ | 770,494 | 10.46 | % | $ | 294,524 | 4.00 | % | N/A | N/A | |||||
| Bank | 797,744 | 10.85 | % | $ | 293,994 | 4.00 | % | $ | 367,492 | 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. The ratios above reflect the Company’s election to opt into the regulators’ joint current expected credit losses ("CECL") transition provision, which allows the Company to phase in the capital impact of the adoption of CECL over the next three years beginning January 1, 2022. Accordingly, capital ratios as of March 31, 2023 reflect 50% of the CECL impact.
CECL Adoption
On December 31, 2022, the Company adopted CECL and applied it retrospectively to the period beginning January 1, 2022 using the modified retrospective method of accounting. Results for reporting periods beginning after September 30, 2022 are presented under the new standard, while prior quarters previously reported are recast as if the new standard had been applied since January 1, 2022. Refer to our Annual Report on Form 10-K for the year ended December 31, 2022 for additional information on the adoption of the standard.
Conference Call, Webcast and Slide Presentation
We will host a conference call and webcast at 9:00 a.m. Central Time on Friday, April 28, 2023 to discuss our quarterly financial results. Analysts and investors may participate in the question-and-answer session. The call can be accessed via telephone at (833) 470-1428; passcode 370613. A recorded replay can be accessed through May 12, 2023 by dialing (866) 813-9403; passcode: 354719
A slide presentation relating to our first quarter 2023 results will be accessible prior to the conference call. The slide presentation and webcast of the conference call can be accessed on our investor relations website at www.bylinebancorp.com.
About Byline Bancorp, Inc.
Headquartered in Chicago, Byline Bancorp, Inc. is the parent company of Byline Bank, a full service commercial bank serving small- and medium-sized businesses, financial sponsors, and consumers. Byline Bank has approximately $7.5 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
Byline Bancorp, Inc.
Page 10 of 16
products and services including small ticket equipment leasing solutions and is one of the top Small Business Administration lenders in the United States.
Forward-Looking Statements
This communication contains forward-looking statements within the meaning of the U.S. federal securities laws. Forward-looking statements include, without limitation, statements concerning plans, estimates, calculations, forecasts and projections with respect to the anticipated future performance of the Company. These statements are often, but not always, made through the use of words or phrases such as ‘‘may’’, ‘‘might’’, ‘‘should’’, ‘‘could’’, ‘‘predict’’, ‘‘potential’’, ‘‘believe’’, ‘‘expect’’, ‘‘continue’’, ‘‘will’’, ‘‘anticipate’’, ‘‘seek’’, ‘‘estimate’’, ‘‘intend’’, ‘‘plan’’, ‘‘projection’’, ‘‘would’’, ‘‘annualized’’, “target” and ‘‘outlook’’, or the negative version of those words or other comparable words or phrases of a future or forward-looking nature. Forward-looking statements involve estimates and known and unknown risks, and reflect various assumptions and involve elements of subjective judgment and analysis, which may or may not prove to be correct, and which are subject to uncertainties and contingencies outside the control of Byline and its respective affiliates, directors, employees and other representatives, which could cause actual results to differ materially from those presented in this communication.
No representations, warranties or guarantees are or will be made by Byline as to the reliability, accuracy or completeness of any forward-looking statements contained in this communication or that such forward-looking statements are or will remain based on reasonable assumptions. You should not place undue reliance on any forward-looking statements contained in this communication.
Certain risks and important factors that could affect Byline’s future results are identified in our Annual Report on Form 10-K and other reports we file with the Securities and Exchange Commission, including among other things under the heading “Risk Factors” in our Annual Report on Form 10-K for the year ended December 31, 2022. Any forward-looking statement speaks only as of the date on which it is made, and Byline undertakes no obligation to update any forward-looking statement, whether to reflect events or circumstances after the date on which the statement is made, to reflect new information or the occurrence of unanticipated events, or otherwise unless required under the federal securities laws.
Contacts:
| Investors: | Media: |
|---|---|
| Brooks Rennie | Erin O’Neill |
| Investor Relations Director | Marketing Director |
| 312-660-5805 | 773-475-2901 |
| brennie@bylinebank.com | eoneill@bylinebank.com |
Byline Bancorp, Inc.
Page 11 of 16
BYLINE BANCORP, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION (unaudited)
| Recast | Recast | Recast | |||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| March 31, | December 31, | September 30, | June 30, | March 31, | |||||||||||
| (dollars in thousands) | 2023 | 2022 | 2022 | 2022 | 2022 | ||||||||||
| ASSETS | |||||||||||||||
| Cash and due from banks | $ | 52,725 | $ | 62,274 | $ | 56,546 | $ | 58,844 | $ | 48,015 | |||||
| Interest bearing deposits with other banks | 231,486 | 117,079 | 159,744 | 83,057 | 105,564 | ||||||||||
| Cash and cash equivalents | 284,211 | 179,353 | 216,290 | 141,901 | 153,579 | ||||||||||
| Equity and other securities, at fair value | 8,339 | 7,989 | 7,279 | 7,860 | 10,677 | ||||||||||
| Securities available-for-sale, at fair value | 1,164,387 | 1,174,431 | 1,181,654 | 1,273,138 | 1,369,368 | ||||||||||
| Securities held-to-maturity, at amortized cost | 2,704 | 2,705 | 3,877 | 3,880 | 3,882 | ||||||||||
| Restricted stock, at cost | 38,777 | 28,202 | 27,077 | 30,002 | 13,977 | ||||||||||
| Loans held for sale | 28,379 | 47,823 | 33,975 | 17,284 | 39,520 | ||||||||||
| Loans and leases: | |||||||||||||||
| Loans and leases | 5,515,332 | 5,421,258 | 5,275,126 | 5,167,716 | 4,787,607 | ||||||||||
| Allowance for credit losses - loans and leases | (90,465 | ) | (81,924 | ) | (79,704 | ) | (74,048 | ) | (72,107 | ) | |||||
| Net loans and leases | 5,424,867 | 5,339,334 | 5,195,422 | 5,093,668 | 4,715,500 | ||||||||||
| Servicing assets, at fair value | 20,944 | 19,172 | 21,127 | 22,155 | 24,497 | ||||||||||
| Premises and equipment, net | 56,098 | 56,798 | 59,049 | 60,773 | 62,281 | ||||||||||
| Other real estate owned, net | 3,712 | 4,717 | 4,402 | 4,749 | 2,221 | ||||||||||
| Goodwill and other intangible assets, net | 157,432 | 158,887 | 160,484 | 162,094 | 163,962 | ||||||||||
| Bank-owned life insurance | 82,693 | 82,093 | 81,592 | 81,100 | 80,604 | ||||||||||
| Deferred tax assets, net | 64,918 | 68,213 | 95,831 | 82,412 | 71,355 | ||||||||||
| Accrued interest receivable and other assets | 192,885 | 193,224 | 179,218 | 143,014 | 114,035 | ||||||||||
| Total assets | $ | 7,530,346 | $ | 7,362,941 | $ | 7,267,277 | $ | 7,124,030 | $ | 6,825,458 | |||||
| LIABILITIES AND STOCKHOLDERS’ EQUITY | |||||||||||||||
| LIABILITIES | |||||||||||||||
| Non-interest-bearing demand deposits | $ | 1,952,045 | $ | 2,138,645 | $ | 2,142,183 | $ | 2,180,927 | $ | 2,281,612 | |||||
| Interest-bearing deposits | 3,860,607 | 3,556,476 | 3,470,273 | 3,207,450 | 3,248,490 | ||||||||||
| Total deposits | 5,812,652 | 5,695,121 | 5,612,456 | 5,388,377 | 5,530,102 | ||||||||||
| Other borrowings | 662,810 | 640,399 | 653,954 | 748,092 | 311,450 | ||||||||||
| Subordinated notes, net | 73,735 | 73,691 | 73,648 | 73,604 | 73,560 | ||||||||||
| Junior subordinated debentures issued to <br> capital trusts, net | 37,442 | 37,338 | 37,232 | 37,123 | 37,011 | ||||||||||
| Accrued expenses and other liabilities | 148,057 | 150,576 | 154,182 | 121,186 | 95,674 | ||||||||||
| Total liabilities | 6,734,696 | 6,597,125 | 6,531,472 | 6,368,382 | 6,047,797 | ||||||||||
| STOCKHOLDERS’ EQUITY | |||||||||||||||
| Preferred stock | — | — | — | — | — | ||||||||||
| Common stock | 390 | 389 | 389 | 388 | 388 | ||||||||||
| Additional paid-in capital | 598,103 | 598,297 | 597,049 | 595,938 | 595,006 | ||||||||||
| Retained earnings | 356,365 | 335,794 | 314,800 | 297,765 | 279,387 | ||||||||||
| Treasury stock | (51,066 | ) | (51,114 | ) | (51,535 | ) | (47,181 | ) | (40,732 | ) | |||||
| Accumulated other comprehensive loss, net of tax | (108,142 | ) | (117,550 | ) | (124,898 | ) | (91,262 | ) | (56,388 | ) | |||||
| Total stockholders’ equity | 795,650 | 765,816 | 735,805 | 755,648 | 777,661 | ||||||||||
| Total liabilities and stockholders’ equity | $ | 7,530,346 | $ | 7,362,941 | $ | 7,267,277 | $ | 7,124,030 | $ | 6,825,458 |
Byline Bancorp, Inc.
Page 12 of 16
BYLINE BANCORP, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS (unaudited)
| Three Months Ended | |||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Recast | Recast | Recast | |||||||||||||
| (dollars in thousands, | March 31, | December 31, | September 30, | June 30, | March 31, | ||||||||||
| except per share data) | 2023 | 2022 | 2022 | 2022 | 2022 | ||||||||||
| INTEREST AND DIVIDEND INCOME | |||||||||||||||
| Interest and fees on loans and leases | $ | 92,343 | $ | 85,720 | $ | 72,635 | $ | 59,919 | $ | 55,138 | |||||
| Interest on securities | 6,600 | 6,569 | 6,402 | 6,264 | 6,155 | ||||||||||
| Other interest and dividend income | 1,059 | 1,515 | 626 | 496 | 120 | ||||||||||
| Total interest and dividend income | 100,002 | 93,804 | 79,663 | 66,679 | 61,413 | ||||||||||
| INTEREST EXPENSE | |||||||||||||||
| Deposits | 16,298 | 10,610 | 5,971 | 2,128 | 1,087 | ||||||||||
| Other borrowings | 5,888 | 4,598 | 3,232 | 1,097 | 395 | ||||||||||
| Subordinated notes and debentures | 2,098 | 1,992 | 1,825 | 1,694 | 1,600 | ||||||||||
| Total interest expense | 24,284 | 17,200 | 11,028 | 4,919 | 3,082 | ||||||||||
| Net interest income | 75,718 | 76,604 | 68,635 | 61,760 | 58,331 | ||||||||||
| PROVISION FOR CREDIT LOSSES | 9,825 | 5,826 | 7,208 | 4,286 | 6,559 | ||||||||||
| Net interest income after <br> provision for <br> credit losses | 65,893 | 70,778 | 61,427 | 57,474 | 51,772 | ||||||||||
| NON-INTEREST INCOME | |||||||||||||||
| Fees and service charges on deposits | 2,120 | 2,081 | 2,128 | 2,059 | 1,884 | ||||||||||
| Loan servicing revenue | 3,380 | 3,293 | 3,422 | 3,384 | 3,380 | ||||||||||
| Loan servicing asset revaluation | 656 | (3,534 | ) | (2,342 | ) | (4,636 | ) | (1,231 | ) | ||||||
| ATM and interchange fees | 1,063 | 1,250 | 1,007 | 1,131 | 1,049 | ||||||||||
| Net realized gains (losses) on securities <br> available-for-sale | — | — | (2 | ) | 52 | — | |||||||||
| Change in fair value of equity <br> securities, net | 350 | 710 | (581 | ) | (697 | ) | (35 | ) | |||||||
| Net gains on sales of loans | 5,148 | 5,509 | 5,580 | 9,983 | 10,827 | ||||||||||
| Wealth management and trust income | 924 | 864 | 995 | 900 | 1,048 | ||||||||||
| Other non-interest income | 1,504 | 1,282 | 1,836 | 2,097 | 2,621 | ||||||||||
| Total non-interest income | 15,145 | 11,455 | 12,043 | 14,273 | 19,543 | ||||||||||
| NON-INTEREST EXPENSE | |||||||||||||||
| Salaries and employee benefits | 30,394 | 31,808 | 29,587 | 27,697 | 28,959 | ||||||||||
| Occupancy and equipment expense, <br> net | 4,444 | 3,532 | 3,919 | 4,409 | 5,128 | ||||||||||
| Impairment charge on assets <br> held for sale | 20 | 372 | — | — | — | ||||||||||
| Loan and lease related expenses | 963 | 1,126 | 530 | 942 | (891 | ) | |||||||||
| Legal, audit, and other <br> professional fees | 3,114 | 3,204 | 2,733 | 1,820 | 2,600 | ||||||||||
| Data processing | 3,783 | 3,406 | 3,370 | 3,396 | 3,186 | ||||||||||
| Net (gain) loss recognized on other real <br> estate owned and other related <br> expenses | (103 | ) | 221 | 275 | 158 | 54 | |||||||||
| Other intangible assets amortization <br> expense | 1,455 | 1,596 | 1,611 | 1,868 | 1,596 | ||||||||||
| Other non-interest expense | 4,730 | 5,235 | 4,016 | 3,295 | 3,324 | ||||||||||
| Total non-interest expense | 48,800 | 50,500 | 46,041 | 43,585 | 43,956 | ||||||||||
| INCOME BEFORE PROVISION FOR <br> INCOME TAXES | 32,238 | 31,733 | 27,429 | 28,162 | 27,359 | ||||||||||
| PROVISION FOR INCOME TAXES | 8,293 | 7,366 | 7,020 | 6,382 | 5,961 | ||||||||||
| NET INCOME | 23,945 | 24,367 | 20,409 | 21,780 | 21,398 | ||||||||||
| Dividends on preferred shares | — | — | — | — | 196 | ||||||||||
| INCOME AVAILABLE TO COMMON <br> STOCKHOLDERS | $ | 23,945 | $ | 24,367 | $ | 20,409 | $ | 21,780 | $ | 21,202 | |||||
| EARNINGS PER COMMON SHARE | |||||||||||||||
| Basic | $ | 0.65 | $ | 0.66 | $ | 0.55 | $ | 0.59 | $ | 0.57 | |||||
| Diluted | $ | 0.64 | $ | 0.65 | $ | 0.55 | $ | 0.58 | $ | 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 | |||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Recast | Recast | Recast | |||||||||||||
| (dollars in thousands, except share | March 31, | December 31, | September 30, | June 30, | March 31, | ||||||||||
| and per share data) | 2023 | 2022 | 2022 | 2022 | 2022 | ||||||||||
| Common Share Data | |||||||||||||||
| Earnings per Common Share | |||||||||||||||
| Basic earnings per common share | $ | 0.65 | $ | 0.66 | $ | 0.55 | $ | 0.59 | $ | 0.57 | |||||
| Diluted earnings per common share | $ | 0.64 | $ | 0.65 | $ | 0.55 | $ | 0.58 | $ | 0.56 | |||||
| Adjusted diluted earnings per <br> common share(1)(2)(3)(4) | $ | 0.65 | $ | 0.67 | $ | 0.55 | $ | 0.58 | $ | 0.56 | |||||
| Weighted average common shares <br> outstanding (basic) | 36,955,085 | 36,856,221 | 36,851,973 | 37,064,795 | 37,123,161 | ||||||||||
| Weighted average common shares <br> outstanding (diluted) | 37,539,912 | 37,360,113 | 37,371,159 | 37,612,268 | 38,042,822 | ||||||||||
| Common shares outstanding | 37,713,427 | 37,492,775 | 37,465,902 | 37,669,102 | 37,811,582 | ||||||||||
| Cash dividends per common share | $ | 0.09 | $ | 0.09 | $ | 0.09 | $ | 0.09 | $ | 0.09 | |||||
| Dividend payout ratio on <br> common stock | 14.06 | % | 13.85 | % | 16.36 | % | 15.52 | % | 16.07 | % | |||||
| Tangible book value per <br> common share(1) | $ | 16.92 | $ | 16.19 | $ | 15.36 | $ | 15.76 | $ | 16.23 | |||||
| Key Ratios and Performance Metrics <br> (annualized where applicable) | |||||||||||||||
| Net interest margin, fully taxable <br> equivalent (1)(5) | 4.39 | % | 4.40 | % | 4.04 | % | 3.78 | % | 3.80 | % | |||||
| Average cost of deposits | 1.15 | % | 0.73 | % | 0.43 | % | 0.16 | % | 0.08 | % | |||||
| Efficiency ratio(2) | 52.10 | % | 55.53 | % | 55.07 | % | 54.87 | % | 54.40 | % | |||||
| Adjusted efficiency ratio(1)(2)(3) | 51.54 | % | 54.50 | % | 55.07 | % | 54.87 | % | 54.40 | % | |||||
| Non-interest income to total <br> revenues(1) | 16.67 | % | 13.01 | % | 14.93 | % | 18.77 | % | 25.09 | % | |||||
| Non-interest expense to average assets | 2.69 | % | 2.76 | % | 2.56 | % | 2.51 | % | 2.66 | % | |||||
| Adjusted non-interest expense to <br> average assets(1)(3) | 2.67 | % | 2.71 | % | 2.56 | % | 2.51 | % | 2.66 | % | |||||
| Return on average stockholders' equity | 12.38 | % | 12.92 | % | 10.57 | % | 11.35 | % | 10.56 | % | |||||
| Adjusted return on average <br> stockholders' equity(1)(3)(4) | 12.62 | % | 13.34 | % | 10.57 | % | 11.35 | % | 10.56 | % | |||||
| Return on average assets | 1.32 | % | 1.33 | % | 1.13 | % | 1.25 | % | 1.30 | % | |||||
| Adjusted return on average assets(1)(3)(4) | 1.35 | % | 1.37 | % | 1.13 | % | 1.25 | % | 1.30 | % | |||||
| Pre-tax pre-provision return on <br> average assets(1) | 2.32 | % | 2.05 | % | 1.93 | % | 1.87 | % | 2.05 | % | |||||
| Adjusted pre-tax pre-provision return<br> on average assets(1)(3) | 2.35 | % | 2.10 | % | 1.93 | % | 1.87 | % | 2.05 | % | |||||
| Return on average tangible common <br> stockholders' equity(1) | 16.20 | % | 17.21 | % | 14.17 | % | 15.31 | % | 14.02 | % | |||||
| Adjusted return on average tangible <br> common stockholders' equity(1)(3) | 16.49 | % | 17.75 | % | 14.17 | % | 15.31 | % | 14.02 | % | |||||
| Non-interest-bearing deposits to <br> total deposits | 33.58 | % | 37.55 | % | 38.17 | % | 40.47 | % | 41.26 | % | |||||
| Loans and leases held for sale and <br> loans and lease held for <br> investment to total deposits | 95.37 | % | 96.03 | % | 94.59 | % | 96.23 | % | 87.29 | % | |||||
| Deposits to total liabilities | 86.31 | % | 86.33 | % | 85.93 | % | 84.61 | % | 91.44 | % | |||||
| Deposits per branch | $ | 152,965 | $ | 149,872 | $ | 147,696 | $ | 141,799 | $ | 125,684 | |||||
| Asset Quality Ratios | |||||||||||||||
| Non-performing loans and leases to <br> total loans and leases held for <br> investment, net before ACL | 0.84 | % | 0.66 | % | 0.80 | % | 0.83 | % | 0.69 | % | |||||
| ACL to total loans and leases held for investment, <br> net before ACL | 1.64 | % | 1.51 | % | 1.51 | % | 1.43 | % | 1.51 | % | |||||
| Net charge-offs to average total loans<br> and leases held for investment, <br> net before ACL - loans and leases | 0.09 | % | 0.24 | % | 0.14 | % | 0.17 | % | 0.07 | % | |||||
| Capital Ratios | |||||||||||||||
| Common equity to total assets | 10.57 | % | 10.40 | % | 10.12 | % | 10.61 | % | 11.39 | % | |||||
| Tangible common equity to <br> tangible assets(1) | 8.66 | % | 8.42 | % | 8.10 | % | 8.53 | % | 9.21 | % | |||||
| Leverage ratio | 10.46 | % | 10.29 | % | 10.30 | % | 10.34 | % | 10.70 | % | |||||
| Common equity tier 1 capital ratio | 10.27 | % | 10.20 | % | 10.24 | % | 10.26 | % | 10.75 | % | |||||
| Tier 1 capital ratio | 10.90 | % | 10.85 | % | 10.91 | % | 10.95 | % | 11.49 | % | |||||
| Total capital ratio | 13.19 | % | 13.00 | % | 13.02 | % | 13.09 | % | 13.72 | % |
(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 | ||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Recast | Recast | Recast | ||||||||||
| March 31, | December 31, | September 30, | June 30, | March 31, | ||||||||
| (dollars in thousands, except per share data) | 2023 | 2022 | 2022 | 2022 | 2022 | |||||||
| Net income and earnings per share <br> excluding significant items | ||||||||||||
| Reported Net Income | $ | 23,945 | $ | 24,367 | $ | 20,409 | $ | 21,780 | $ | 21,398 | ||
| Significant items: | ||||||||||||
| Impairment charges on assets held <br> for sale and ROU asset | 20 | 372 | — | — | — | |||||||
| Merger-related expenses | 489 | 538 | — | — | — | |||||||
| Tax benefit | (56 | ) | (118 | ) | — | — | — | |||||
| Adjusted Net Income | $ | 24,398 | $ | 25,159 | $ | 20,409 | $ | 21,780 | $ | 21,398 | ||
| Reported Diluted Earnings per Share | $ | 0.64 | $ | 0.65 | $ | 0.55 | $ | 0.58 | $ | 0.56 | ||
| Significant items: | ||||||||||||
| Impairment charges on assets held <br> for sale and ROU asset | — | 0.01 | — | — | — | |||||||
| Merger-related expenses | 0.01 | 0.01 | — | — | — | |||||||
| Tax benefit | — | — | — | — | — | |||||||
| Adjusted Diluted Earnings per Share | $ | 0.65 | $ | 0.67 | $ | 0.55 | $ | 0.58 | $ | 0.56 |
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 | ||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Recast | Recast | Recast | ||||||||||
| (dollars in thousands, except per share data, | March 31, | December 31, | September 30, | June 30, | March 31, | |||||||
| ratios annualized, where applicable) | 2023 | 2022 | 2022 | 2022 | 2022 | |||||||
| Adjusted non-interest expense: | ||||||||||||
| Non-interest expense | $ | 48,800 | $ | 50,500 | $ | 46,041 | $ | 43,585 | $ | 43,956 | ||
| Less: Significant items | ||||||||||||
| Impairment charges on assets held for sale <br> and ROU asset | 20 | 372 | — | — | — | |||||||
| Merger-related expenses | 489 | 538 | — | — | — | |||||||
| Adjusted non-interest expense | $ | 48,291 | $ | 49,590 | $ | 46,041 | $ | 43,585 | $ | 43,956 | ||
| Adjusted non-interest expense excluding <br> amortization of intangible assets: | ||||||||||||
| Adjusted non-interest expense | $ | 48,291 | $ | 49,590 | $ | 46,041 | $ | 43,585 | $ | 43,956 | ||
| Less: Amortization of intangible assets | 1,455 | 1,596 | 1,611 | 1,868 | 1,596 | |||||||
| Adjusted non-interest expense excluding <br> amortization of intangible assets | $ | 46,836 | $ | 47,994 | $ | 44,430 | $ | 41,717 | $ | 42,360 | ||
| Pre-tax pre-provision net income: | ||||||||||||
| Pre-tax income | $ | 32,238 | $ | 31,733 | $ | 27,429 | $ | 28,162 | $ | 27,359 | ||
| Add: Provision for credit losses | 9,825 | 5,826 | 7,208 | 4,286 | 6,559 | |||||||
| Pre-tax pre-provision net income | $ | 42,063 | $ | 37,559 | $ | 34,637 | $ | 32,448 | $ | 33,918 | ||
| Adjusted pre-tax pre-provision net income: | ||||||||||||
| Pre-tax pre-provision net income | $ | 42,063 | $ | 37,559 | $ | 34,637 | $ | 32,448 | $ | 33,918 | ||
| Add: Impairment charges on assets held for sale <br> and ROU asset | 20 | 372 | — | — | — | |||||||
| Add: Merger-related expenses | 489 | 538 | — | — | — | |||||||
| Adjusted pre-tax pre-provision net income | $ | 42,572 | $ | 38,469 | $ | 34,637 | $ | 32,448 | $ | 33,918 | ||
| Tax equivalent net interest income | ||||||||||||
| Net interest income | $ | 75,718 | $ | 76,604 | $ | 68,635 | $ | 61,760 | $ | 58,331 | ||
| Add: Tax-equivalent adjustment | 208 | 214 | 228 | 237 | 236 | |||||||
| Net interest income, fully taxable equivalent | $ | 75,926 | $ | 76,818 | $ | 68,863 | $ | 61,997 | $ | 58,567 | ||
| Total revenue: | ||||||||||||
| Net interest income | $ | 75,718 | $ | 76,604 | $ | 68,635 | $ | 61,760 | $ | 58,331 | ||
| Add: Non-interest income | 15,145 | 11,455 | 12,043 | 14,273 | 19,543 | |||||||
| Total revenue | $ | 90,863 | $ | 88,059 | $ | 80,678 | $ | 76,033 | $ | 77,874 | ||
| Tangible common stockholders' equity: | ||||||||||||
| Total stockholders' equity | $ | 795,650 | $ | 765,816 | $ | 735,805 | $ | 755,648 | $ | 777,661 | ||
| Less: Preferred stock | — | — | — | — | — | |||||||
| Less: Goodwill and other intangibles | 157,432 | 158,887 | 160,484 | 162,094 | 163,962 | |||||||
| Tangible common stockholders' equity | $ | 638,218 | $ | 606,929 | $ | 575,321 | $ | 593,554 | $ | 613,699 | ||
| Tangible assets: | ||||||||||||
| Total assets | $ | 7,530,346 | $ | 7,362,941 | $ | 7,267,277 | $ | 7,124,030 | $ | 6,825,458 | ||
| Less: Goodwill and other intangibles | 157,432 | 158,887 | 160,484 | 162,094 | 163,962 | |||||||
| Tangible assets | $ | 7,372,914 | $ | 7,204,054 | $ | 7,106,793 | $ | 6,961,936 | $ | 6,661,496 | ||
| Average tangible common stockholders' <br> equity: | ||||||||||||
| Average total stockholders' equity | $ | 784,289 | $ | 748,292 | $ | 765,821 | $ | 769,658 | $ | 822,053 | ||
| Less: Average preferred stock | — | — | — | — | 9,974 | |||||||
| Less: Average goodwill and other <br> intangibles | 158,181 | 159,680 | 161,292 | 163,068 | 164,837 | |||||||
| Average tangible common stockholders' <br> equity | $ | 626,108 | $ | 588,612 | $ | 604,529 | $ | 606,590 | $ | 647,242 | ||
| Average tangible assets: | ||||||||||||
| Average total assets | $ | 7,345,151 | $ | 7,266,053 | $ | 7,137,472 | $ | 6,966,564 | $ | 6,697,476 | ||
| Less: Average goodwill and other <br> intangibles | 158,181 | 159,680 | 161,292 | 163,068 | 164,837 | |||||||
| Average tangible assets | $ | 7,186,970 | $ | 7,106,373 | $ | 6,976,180 | $ | 6,803,496 | $ | 6,532,639 | ||
| Tangible net income available to common <br> stockholders: | ||||||||||||
| Net income available to common <br> stockholders | $ | 23,945 | $ | 24,367 | $ | 20,409 | $ | 21,780 | $ | 21,202 | ||
| Add: After-tax intangible asset amortization | 1,066 | 1,170 | 1,181 | 1,369 | 1,170 | |||||||
| Tangible net income available to common <br> stockholders | $ | 25,011 | $ | 25,537 | $ | 21,590 | $ | 23,149 | $ | 22,372 | ||
| Adjusted tangible net income available<br> to common stockholders: | ||||||||||||
| Tangible net income available to common <br> stockholders | $ | 25,011 | $ | 25,537 | $ | 21,590 | $ | 23,149 | $ | 22,372 | ||
| Impairment charges on assets held for sale <br> and ROU asset | 20 | 372 | — | — | — | |||||||
| Merger-related expenses | 489 | 538 | — | — | — | |||||||
| Tax benefit on significant items | (56 | ) | (118 | ) | — | — | — | |||||
| Adjusted tangible net income available to <br> common stockholders | $ | 25,464 | $ | 26,329 | $ | 21,590 | $ | 23,149 | $ | 22,372 |
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 | |||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Recast | Recast | Recast | |||||||||||||
| (dollars in thousands, except share and per share | March 31, | December 31, | September 30, | June 30, | March 31, | ||||||||||
| data, ratios annualized, where applicable) | 2023 | 2022 | 2022 | 2022 | 2022 | ||||||||||
| Pre-tax pre-provision return on average assets: | |||||||||||||||
| Pre-tax pre-provision net income | $ | 42,063 | $ | 37,559 | $ | 34,637 | $ | 32,448 | $ | 33,918 | |||||
| Average total assets | 7,345,151 | 7,266,053 | 7,137,472 | 6,966,564 | 6,697,476 | ||||||||||
| Pre-tax pre-provision return on average assets | 2.32 | % | 2.05 | % | 1.93 | % | 1.87 | % | 2.05 | % | |||||
| Adjusted pre-tax pre-provision return on average <br> assets: | |||||||||||||||
| Adjusted pre-tax pre-provision net income | $ | 42,572 | $ | 38,469 | $ | 34,637 | $ | 32,448 | $ | 33,918 | |||||
| Average total assets | 7,345,151 | 7,266,053 | 7,137,472 | 6,966,564 | 6,697,476 | ||||||||||
| Adjusted pre-tax pre-provision return on average <br> assets | 2.35 | % | 2.10 | % | 1.93 | % | 1.87 | % | 2.05 | % | |||||
| Net interest margin, fully taxable equivalent | |||||||||||||||
| Net interest income, fully taxable equivalent | $ | 75,926 | $ | 76,818 | $ | 68,863 | $ | 61,997 | $ | 58,567 | |||||
| Total average interest-earning assets | 7,009,144 | 6,922,889 | 6,763,916 | 6,572,416 | 6,252,866 | ||||||||||
| Net interest margin, fully taxable equivalent | 4.39 | % | 4.40 | % | 4.04 | % | 3.78 | % | 3.80 | % | |||||
| Non-interest income to total revenues: | |||||||||||||||
| Non-interest income | $ | 15,145 | $ | 11,455 | $ | 12,043 | $ | 14,273 | $ | 19,543 | |||||
| Total revenues | 90,863 | 88,059 | 80,678 | 76,033 | 77,874 | ||||||||||
| Non-interest income to total revenues | 16.67 | % | 13.01 | % | 14.93 | % | 18.77 | % | 25.09 | % | |||||
| Adjusted non-interest expense to average assets: | |||||||||||||||
| Adjusted non-interest expense | $ | 48,291 | $ | 49,590 | $ | 46,041 | $ | 43,585 | $ | 43,956 | |||||
| Average total assets | 7,345,151 | 7,266,053 | 7,137,472 | 6,966,564 | 6,697,476 | ||||||||||
| Adjusted non-interest expense to average assets | 2.67 | % | 2.71 | % | 2.56 | % | 2.51 | % | 2.66 | % | |||||
| Adjusted efficiency ratio: | |||||||||||||||
| Adjusted non-interest expense excluding <br> amortization of intangible assets | $ | 46,836 | $ | 47,994 | $ | 44,430 | $ | 41,717 | $ | 42,360 | |||||
| Total revenues | 90,863 | 88,059 | 80,678 | 76,033 | 77,874 | ||||||||||
| Adjusted efficiency ratio | 51.54 | % | 54.50 | % | 55.07 | % | 54.87 | % | 54.40 | % | |||||
| Adjusted return on average assets: | |||||||||||||||
| Adjusted net income | $ | 24,398 | $ | 25,159 | $ | 20,409 | $ | 21,780 | $ | 21,398 | |||||
| Average total assets | 7,345,151 | 7,266,053 | 7,137,472 | 6,966,564 | 6,697,476 | ||||||||||
| Adjusted return on average assets | 1.35 | % | 1.37 | % | 1.13 | % | 1.25 | % | 1.30 | % | |||||
| Adjusted return on average stockholders' equity: | |||||||||||||||
| Adjusted net income | $ | 24,398 | $ | 25,159 | $ | 20,409 | $ | 21,780 | $ | 21,398 | |||||
| Average stockholders' equity | 784,289 | 748,292 | 765,821 | 769,658 | 822,053 | ||||||||||
| Adjusted return on average stockholders' equity | 12.62 | % | 13.34 | % | 10.57 | % | 11.35 | % | 10.56 | % | |||||
| Tangible common equity to tangible assets: | |||||||||||||||
| Tangible common equity | $ | 638,218 | $ | 606,929 | $ | 575,321 | $ | 593,554 | $ | 613,699 | |||||
| Tangible assets | 7,372,914 | 7,204,054 | 7,106,793 | 6,961,936 | 6,661,496 | ||||||||||
| Tangible common equity to tangible assets | 8.66 | % | 8.42 | % | 8.10 | % | 8.53 | % | 9.21 | % | |||||
| Return on average tangible common stockholders' <br> equity: | |||||||||||||||
| Tangible net income available to common <br> stockholders | $ | 25,011 | $ | 25,537 | $ | 21,590 | $ | 23,149 | $ | 22,372 | |||||
| Average tangible common stockholders' equity | 626,108 | 588,612 | 604,529 | 606,590 | 647,242 | ||||||||||
| Return on average tangible common <br> stockholders' equity | 16.20 | % | 17.21 | % | 14.17 | % | 15.31 | % | 14.02 | % | |||||
| Adjusted return on average tangible common <br> stockholders' equity: | |||||||||||||||
| Adjusted tangible net income available to<br> common stockholders | $ | 25,464 | $ | 26,329 | $ | 21,590 | $ | 23,149 | $ | 22,372 | |||||
| Average tangible common stockholders' equity | 626,108 | 588,612 | 604,529 | 606,590 | 647,242 | ||||||||||
| Adjusted return on average tangible common <br> stockholders' equity | 16.49 | % | 17.75 | % | 14.17 | % | 15.31 | % | 14.02 | % | |||||
| Tangible book value per share: | |||||||||||||||
| Tangible common equity | $ | 638,218 | $ | 606,929 | $ | 575,321 | $ | 593,554 | $ | 613,699 | |||||
| Common shares outstanding | 37,713,427 | 37,492,775 | 37,465,902 | 37,669,102 | 37,811,582 | ||||||||||
| Tangible book value per share | $ | 16.92 | $ | 16.19 | $ | 15.36 | $ | 15.76 | $ | 16.23 |
1Q23 Earnings Presentation Exhibit 99.2
2 Forward-Looking Statements Forward-Looking Statements This communication contains forward-looking statements within the meaning of the U.S. federal securities laws. Forward-looking statements include, without limitation, statements concerning plans, estimates, calculations, forecasts and projections with respect to the anticipated future performance of the Company. These statements are often, but not always, made through the use of words or phrases such as ‘‘may’’, ‘‘might’’, ‘‘should’’, ‘‘could’’, ‘‘predict’’, ‘‘potential’’, ‘‘believe’’, ‘‘expect’’, ‘‘continue’’, ‘‘will’’, ‘‘anticipate’’, ‘‘seek’’, ‘‘estimate’’, ‘‘intend’’, ‘‘plan’’, ‘‘projection’’, ‘‘would’’, ‘‘annualized’’, “target” and ‘‘outlook’’, or the negative version of those words or other comparable words or phrases of a future or forward-looking nature. Forward-looking statements involve estimates and known and unknown risks, and reflect various assumptions and involve elements of subjective judgement and analysis, which may or may not prove to be correct, and which are subject to uncertainties and contingencies outside the control of Byline and its respective affiliates, directors, employees and other representatives, which could cause actual results to differ materially from those presented in this communication. No representations, warranties or guarantees are or will be made by Byline as to the reliability, accuracy or completeness of any forward-looking statements contained in this communication or that such forward-looking statements are or will remain based on reasonable assumptions. You should not place undue reliance on any forward-looking statements contained in this communication. Certain risks and important factors that could affect Byline’s future results are identified in our Annual Report on Form 10-K and other reports we file with the Securities and Exchange Commission, including among other things under the heading “Risk Factors” in our Annual Report on Form 10-K for the year ended December 31, 2022. Any forward-looking statement speaks only as of the date on which it is made, and Byline undertakes no obligation to update any forward-looking statement, whether to reflect events or circumstances after the date on which the statement is made, to reflect new information or the occurrence of unanticipated events, or otherwise unless required under the federal securities laws. Due to rounding, numbers presented throughout this document may not add up precisely to the totals provided and percentages may not precisely reflect the absolute figures. Current Expected Credit Loss (“CECL”) Adoption On December 31, 2022, the Company adopted CECL and applied it retrospectively to the period beginning January 1, 2022 using the modified retrospective method of accounting. Results for reporting periods beginning after September 30, 2022 are presented under the new standard, while prior quarters previously reported are recast as if the new standard had been applied since January 1, 2022.
Total deposits up $117.5 million or 2.1% QoQ Shift in mix driven by seasonal fluctuations, and migration to higher yielding alternatives Deposit base remained stable, and liquidity remains ample during a volatile period Diversified and balanced deposit base, with 47% business and 53% consumer accounts ~72% of total deposits insured by the FDIC Liquidity coverage of uninsured deposits ~120% as of quarter end ROAA & ROTCE(1) PTPP Net Income & EPS First Quarter 2023 Highlights $0.64 per diluted share $23.9 million 16.20% ROTCE 1.32% ROAA 2.32% PTPP ROA $42.1 million Driving Organic Growth & Profitability Stable Deposit Base & Strong Liquidity Disciplined Credit & Capital Profile Revenue up 17% YoY; Pre-Tax Pre-Provision Net Income growth of 24% YoY; EPS increased 14% YoY Solid broad-based loan growth of 5.5% annualized Net interest margin (FTE)(1) stood at 4.39% Earning assets yields increased 41 bps Loan yields expanding 52 bps Deposit costs increased 42 bps Controlled expense management, maintained positive operating leverage 3 Represents a non-GAAP financial measure. See “Non-GAAP Reconciliation” in the appendix. Disciplined through-the-cycle underwriting and proactive portfolio management Credit quality trends remained stable QoQ with: NCOs of 0.09%, down 15 bps NPA/Assets of 0.67%, up 12 bps 30+ DLQs of 0.26%, down 2 bps ACL as percent of loans and leases of 1.64%, up QoQ CET1 and Total Capital ratios remained solid at 10.27% and 13.19% TCE Ratio including HTM(1) is 8.66%
Loan and Lease Trends ($ in millions) Total Loans & Leases and Average Yield Portfolio Composition Total loans and leases were $5.5 billion at 1Q23, an increase of $74.6 million, or 5.5% annualized Originated $249.4 million in new loans, net of loan sales in 1Q23 compared to $268.6 million in 4Q22 Production driven by lease and commercial originations of $77.2 million and $70.2 million respectively Payoff activity increased by $57.0 million from 4Q22 Cumulative Loan Beta(1): 43% Highlights Total Loans and Leases % change QoQ YoY 1.4% 14.8% Utilization Rates 55% LTM Average Originations and Payoffs Cumulative Beta calculated as the change in yield on loans from 4Q21 to 1Q23 divided by the change in average Fed Funds from 4Q21 to 1Q23. 4
(1) $ Balance % of Portfolio Unguaranteed $376.5 6.8% Guaranteed 99.4 1.8% Total SBA 7(a) Loans $475.9 8.6% Unguaranteed $40.3 0.7% Guaranteed 21.6 0.4% Total USDA Loans $61.9 1.1% Unguaranteed Loan Portfolio by Industry A leading SBA 7(a) lender as of March 31, 2023 Closed $71.2 million loan commitments in 1Q23 SBA 7(a) portfolio $475.9 million, down $3.0 million from 4Q22 ACL/Unguaranteed loan balance ~ 9.3% Servicing $1.7 billion in government guaranteed loans for investors Government-Guaranteed Lending ($ in millions) On Balance Sheet SBA 7(a) & USDA Loans Total SBC Closed Loan Commitments Highlights Represents sectors with less than 5% of the total portfolio. 5
Cost of Interest Bearing Deposits Total deposits were $5.8 billion, up 8.4% annualized from 4Q22 Diversified deposit composition with limited concentrations and significant levels of relationship deposits Cost of deposits increased 42 bps in 1Q22, due to market rate increases and deposit mix changes Commercial deposits accounted for 47.3% of total deposits and represent 76.3% of all non-interest bearing deposits Cumulative total deposit beta remains low at ~23% since the beginning of the current tightening cycle Deposit Trends ($ in millions) Deposit Composition Highlights Average Non-Interest Bearing Deposits Deposit Beta(1) Interest-Bearing Deposits: 35% Total Deposits: 23% 6 Beta calculation is based on change in deposit cost divided by change in Fed Funds from 4Q21 to 1Q23. Total Deposits % change QoQ YoY 2.1% 5.1%
Granular Deposit Base 7 Consumer Deposits, $3.1 billion Commercial Deposits, $2.8 billion ~72% of Total Deposits are FDIC Insured …with limited concentration and granular customer base providing a stable source of funding Consumer Deposits(1) $3.0 billion at 3/31/23 Granular Deposit Base ~$24,000 Average Account Balance Customer Base ~105,000 Consumer Accounts Total Franchise 38 Branches Commercial Deposits $2.8 billion at 3/31/23 Granular Deposit Base ~$115,000 Average Account Balance Customer Base ~25,000 Commercial Accounts Consumer Deposits, $3.0 billion Commercial Deposits, $2.8 billion Uninsured 8.0% d Total Deposits $5.8 Billion as of 3/31/23 Core banking footprint in key urban MSAs in Wisconsin and a broad footprint in Chicago, IL A strength of our franchise is our well diversified deposit base… Excludes brokered deposits.
Net interest income was $75.7 million, down 1.2% from 4Q22 Net interest margin decreased 1 basis point from 4Q22 to 4.38% Loan and lease yield of 6.83%, up 52 basis points from 4Q22 Interest Rate Sensitivity Terminated $100 million of pay fixed swaps at a gain of $5.7 million Executed $100 million of receive fixed swaps +$2.5 million in net interest income per 25 bps in Fed tightening NIM Bridge Net Interest Income and Net Interest Margin Trends Net Interest Income Highlights NIM, Yields, and Costs 8 Net Interest Income % change QoQ YoY -1.2% 29.8% Repricing Mix
Government Guaranteed Loan Sales $72.2 million of guaranteed loans sold in 1Q23, compared to $86.0 million in 4Q22 Loans held for sale decreased to $28.4 million in 1Q23 from $47.8 million in 4Q22 Non-interest income was $15.1 million, up 32.2% from 4Q22 Non-interest income trends remain stable QoQ, excluding FV mark on loan servicing asset Gain on sale margins improved driven by higher premiums, offset by lower volume of loans sold Volume Sold and Average Net Premiums Non-Interest Income Trends ($ in millions) Total Non-Interest Income Highlights Net Gains on Sales of Loans 9
(1) Non-interest expenses decreased to $48.8 million from $50.5 million in 4Q22, primarily attributable to: $1.4 million decrease in salaries and employee benefits mainly due to lower incentive compensation Decrease in other non-interest expense due to non-recurring leasehold charge in 4Q22 Increase in occupancy and equipment expense, net, primarily due to increases in real estate taxes and building maintenance Well-controlled expense base in the current environment Efficiency ratio stood at 52.10% at 1Q23 Positive Operating Leverage Non-Interest Expense Trends ($ in millions) Non-Interest Expense Highlights Efficiency Ratio 10 Represents a non-GAAP financial measure. See “Non-GAAP Reconciliation” in the appendix. Achieved positive operating leverage in 1Q23 despite inflationary environment Prudent and disciplined expense management to drive quarterly positive operating leverage
Note: Delinquencies represent accruing loans and leases past due 30 days or more. Delinquencies to Total Loans and Leases represent delinquencies divided by period end loans and leases. Delinquencies Asset Quality Trends ($ in millions) Net Charge-offs NPLs / Total Loans & Leases 11 NCO Ratio bps change QoQ YoY -15 bps 2 bps Allowance for Credit Losses (ACL) ($ in thousands)
Median: 53% Percent of Insured Deposits(2) Liquidity Position Strong Liquidity and Securities Portfolio Robust liquidity position supported by cash and substantial borrowing capacity $1.8 billion of available borrowing capacity Cash and cash equivalents of $284.2 million Cash + Secured borrowing capacity to uninsured deposits of 119.7% Securities to assets of 16% HTM portfolio of $2.7 million ($23,000 in unrealized losses) Loans/Deposits ratio down slightly at 95.4% QoQ % of Uninsured Deposits Industry Comparisons(1) >$500B $250B - $500B $100B - $250B $50B - $100B $10B - $50B $1B - $10B Median 47.1% 45.0% 50.2% 52.5% 43.8% 33.1% Byline Bank 27.9% 27.9% 27.9% 27.9% 27.9% 27.9% 12 Source: SNL Financial, and company filings. Financial data as of quarter ended December 31, 2022 or most recent available. Source: Company’s 2022 Form 10-K | Calculation: (total deposits uninsured deposits) / total consolidated deposits | Byline 2023 Proxy Peer Group. AFS Portfolio by Type No outstanding Discount Window or Bank Term Funding borrowings Posted $222 million to Bank Term Funding Program Proactively tested Fed Fund lines given market conditions $1.2 billion investment portfolio (~99.8% AFS); duration: 5.4 years Annual Securities Book Cash Flow: ~$130 million AOCI / TCE(1): ~16.9% Highlights
(2) (1) Return on Average Tangible Common Equity Strong Capital Position Capital Ratios 13 As reported prior to CECL adoption. Represents a non-GAAP financial measure. See “Non-GAAP Reconciliation” in the appendix. Strong Capital Base Common Equity Tier 1 Capital Priorities: TCE operating target range is between 8% and 9%: currently at 8.66% $795.7 million total stockholders equity $450 million of balance sheet hedges to protect market value risk Capital levels are strong and significantly above regulatory requirements 1. Fund Organic Growth 2. Dividend 3. M&A 4. Buyback
2023 Strategic Priorities and Near-Term Outlook Commercial banking strategy focused on organic loan and deposit growth Maintain credit discipline and strong asset quality Investing in digital capabilities and automation Opportunistic M&A and talent additions Maintain a strong balance sheet and capital flexibility Disciplined loan and deposit pricing 14
1Q23 Earnings Presentation Appendix
CRE Portfolio: Office Represents 3.2% of Total Loans 16 Non-Owner Occupied Commercial Real Estate Portfolio d Total Loans & Leases $5.5 Billion as of 3/31/23 ($ in millions) 3/31/23 Multifamily $439.6 28.7% Industrial / Warehouse 493.3 32.2% Office 178.7 11.7% Retail 158.5 10.4% Senior Housing / Healthcare 35.1 2.3% Hotel / Motel 13.8 0.9% Mixed Use 16.9 1.1% Other 194.5 12.7% Total $1,530.4 27.7% % of NOO CRE Loans Note: Non-Owner Occupied CRE Portfolio includes construction, land, multi-family and non-owner occupied (NOO).
Office CRE Portfolio: Diversified Tenants and Markets NCOs / Average loans represents net charge-offs to average loans for the last twelve month period. Tenant Classification ($ in millions) 3/31/23 Illinois $90.5 North Carolina 26.0 Wisconsin 18.6 New Jersey 10.8 Ohio 9.8 Florida 8.3 Minnesota 5.5 Virginia 4.0 New Mexico 2.3 West Virginia 1.1 Michigan 1.0 Tennessee 0.8 Total Office $178.7 3/31/23 Avg. Commitment $3.4 million ACL % 1.1% NCO %(1) 0.00% 30+ DLQ % 1.4% NPL % 3.1% Criticized % 7% CRE Office: Geographic Mix by State Office Portfolio Metrics Office Portfolio Market Type 17
Five Quarter Financial Summary 18 Represents a non-GAAP financial measure. See “Non-GAAP Reconciliation” in the appendix. As of or For the Three Months Ended Recast Recast Recast March 31, December 31, September 30, June 30, March 31, (dollars in thousands, except per share data) 2023 2022 2022 2022 2022 Income Statement Net interest income $ 75,718 $ 76,604 $ 68,635 $ 61,760 $ 58,331 Provision (recapture) for credit losses 9,825 5,826 7,208 4,286 6,559 Non-interest income 15,145 11,455 12,043 14,273 19,543 Non-interest expense 48,800 50,500 46,041 43,585 43,956 Income before provision for income taxes 32,238 31,733 27,429 28,162 27,359 Provision for income taxes 8,293 7,366 7,020 6,382 5,961 Net income 23,945 24,367 20,409 21,780 21,398 Dividends on preferred shares — — — — 196 Net income available to common stockholders $ 23,945 $ 24,367 $ 20,409 $ 21,780 $ 21,202 Diluted earnings per common share(1) $ 0.64 $ 0.65 $ 0.55 $ 0.58 $ 0.56 Balance Sheet Total loans and leases HFI $ 5,515,332 $ 5,421,258 $ 5,275,126 $ 5,167,716 $ 4,787,607 Total deposits 5,812,652 5,695,121 5,612,456 5,388,377 5,530,102 Tangible common equity(1) 638,218 606,929 575,321 593,555 613,698 Balance Sheet Metrics Loans and leases / total deposits 95.37% 96.03% 94.59% 96.23% 87.29% Tangible common equity / tangible assets(1) 8.66% 8.42% 8.25% 8.65% 9.36% Key Performance Ratios Net interest margin 4.38% 4.39% 4.03% 3.77% 3.78% Efficiency ratio 52.10% 55.53% 55.07% 54.87% 54.40% Adjusted efficiency ratio(1) 51.54% 54.50% 55.07% 54.87% 54.40% Non-interest income to total revenues 16.67% 13.01% 14.93% 18.77% 25.09% Non-interest expense to average assets 2.69% 2.76% 2.56% 2.51% 2.66% Return on average assets 1.32% 1.33% 1.13% 1.25% 1.30% Adjusted return on average assets(1) 1.35% 1.37% 1.13% 1.25% 1.30% Pre-tax pre-provision return on average assets (1) 2.32% 2.05% 1.93% 1.87% 2.05% Dividend payout ratio on common stock 14.06% 13.85% 16.36% 15.52% 16.07% Tangible book value per common share(1) $ 16.92 $ 16.19 $ 15.36 $ 15.76 $ 16.23
Non-GAAP Reconciliation 19 As of or For the Three Months Ended Recast Recast Recast (dollars in thousands, except per share data) March 31, 2023 December 31, 2022 September30, 2022 June 30, 2022 March 31, 2022 Net income and earnings per share excluding significant items Reported Net Income $ 23,945 $ 24,367 $ 20,409 $ 21,780 $ 21,398 Significant items: Impairment charges on assets held for sale and ROU asset 20 372 — — — Merger-related expenses 489 538 — — — Tax benefit (56) (118) — — — Adjusted Net Income $ 24,398 $ 25,159 $ 20,409 $ 21,780 $ 21,398 Reported Diluted Earnings per Share $ 0.64 $ 0.65 $ 0.55 $ 0.58 $ 0.56 Significant items: Impairment charges on assets held for sale and ROU asset — 0.01 — — — Merger-related expenses 0.01 0.01 — — — Tax benefit — — — — — Adjusted Diluted Earnings per Share $ 0.65 $ 0.67 $ 0.55 $ 0.58 $ 0.56
Non-GAAP Reconciliation (continued) 20 As of or For the Three Months Ended Recast Recast Recast (dollars in thousands) March 31, 2023 December 31, 2022 September30, 2022 June 30, 2022 March 31, 2022 Adjusted non-interest expense: Non-interest expense $ 48,800 $ 50,500 $ 46,041 $ 43,585 $ 43,956 Less: Significant items Impairment charges on assets held for sale and ROU asset 20 372 — — — Merger-related expenses 489 538 — — — Adjusted non-interest expense $ 48,291 $ 49,590 $ 46,041 $ 43,585 $ 43,956 Adjusted non-interest expense ex. amortization of intangible assets: Adjusted non-interest expense $ 48,291 $ 49,590 $ 46,041 $ 43,585 $ 43,956 Less: Amortization of intangible assets 1,455 1,596 1,611 1,868 1,596 Adjusted non-interest expense ex. amortization of intangible assets $ 46,836 $ 47,994 $ 44,430 $ 41,717 $ 42,360 Pre-tax pre-provision net income: Pre-tax income $ 32,238 $ 31,733 $ 27,429 $ 28,162 $ 27,359 Add: Provision for loan and lease losses 9,825 5,826 7,208 4,286 6,559 Pre-tax pre-provision net income $ 42,063 $ 37,559 $ 34,637 $ 32,448 $ 33,918 Adjusted pre-tax pre-provision net income: Pre-tax pre-provision net income $ 42,063 $ 37,559 $ 34,637 $ 32,448 $ 33,918 Add: Impairment charges on assets held for sale and ROU asset 20 372 — — — Add: Merger-related expenses 489 538 — — — Adjusted pre-tax pre-provision net income $ 42,572 $ 38,469 $ 34,637 $ 32,448 $ 33,918 Tax Equivalent Net Interest Income Net interest income $ 75,718 $ 76,604 $ 68,635 $ 61,760 $ 58,331 Add: Tax-equivalent adjustment 208 214 228 237 236 Net interest income, fully taxable equivalent $ 75,926 $ 76,818 $ 68,863 $ 61,997 $ 58,567 Total revenues: Net interest income $ 75,718 $ 76,604 $ 68,635 $ 61,760 $ 58,331 Add: Non-interest income 15,145 11,455 12,043 14,273 19,543 Total revenues $ 90,863 $ 88,059 $ 80,678 $ 76,033 $ 77,874
Non-GAAP Reconciliation (continued) 21 As of or For the Three Months Ended Recast Recast Recast (dollars in thousands) March 31, 2023 December 31, 2022 September30, 2022 June 30, 2022 March 31, 2022 Tangible common stockholders' equity: Total stockholders' equity $ 795,650 $ 765,816 $ 735,805 $ 755,648 $ 777,661 Less: Preferred stock — — — — — Less: Goodwill and other intangibles 157,432 158,887 160,484 162,094 163,962 Tangible common stockholders' equity $ 638,218 $ 606,929 $ 575,321 $ 593,554 $ 613,699 Tangible assets: Total assets $ 7,530,346 $ 7,362,941 $ 7,267,277 $ 7,124,030 $ 6,825,458 Less: Goodwill and other intangibles 157,432 158,887 160,484 162,094 163,962 Tangible assets $ 7,372,914 $ 7,204,054 $ 7,106,793 $ 6,961,936 $ 6,661,496 Tangible assets, excluding accumulated other comprehensive loss: Tangible assets $ 7,372,914 $ 7,204,054 $ 7,106,793 $ 6,961,936 $ 6,661,496 Less: Accumulated other comprehensive loss (108,142) (117,550) (124,898) (91,262) (56,388) Tangible assets, excluding accumulated other comprehensive loss: $ 7,481,056 $ 7,321,604 $ 7,231,691 $ 7,053,198 $ 6,717,884 Tangible common stockholders' equity, excluding accumulated other comprehensive loss Tangible common stockholders' equity $ 638,218 $ 606,929 $ 575,321 $ 593,554 $ 613,699 Less: Accumulated other comprehensive loss (108,142) (117,550) (124,898) (91,262) (56,388) Tangible common stockholders' equity, excluding accumulated other comprehensive loss $ 746,360 $ 724,479 $ 700,219 $ 684,816 $ 670,087 Average tangible common stockholders' equity: Average total stockholders' equity $ 784,289 $ 748,292 $ 765,821 $ 769,658 $ 822,053 Less: Average preferred stock — — — 9,974 Less: Average goodwill and other intangibles 158,181 159,680 161,292 163,068 164,837 Average tangible common stockholders' equity $ 626,108 $ 588,612 $ 604,529 $ 606,590 $ 647,242 Average tangible assets: Average total assets $ 7,345,151 $ 7,266,053 $ 7,137,472 $ 6,966,564 $ 6,697,476 Less: Average goodwill and other intangibles 158,181 159,680 161,292 163,068 164,837 Average tangible assets $ 7,186,970 $ 7,106,373 $ 6,976,180 $ 6,803,496 $ 6,532,639 Tangible net income available to common stockholders: Net income available to common stockholders $ 23,945 $ 24,367 $ 20,409 $ 21,780 $ 21,202 Add: After-tax intangible asset amortization 1,066 1,170 1,181 1,369 1,170 Tangible net income available to common stockholders $ 25,011 $ 25,537 $ 21,590 $ 23,149 $ 22,372 Adjusted tangible net income available to common stockholders: Tangible net income available to common stockholders $ 25,011 $ 25,537 $ 21,590 $ 23,149 $ 22,372 Impairment charges on assets held for sale and ROU asset 20 372 — — — Merger-related expenses 489 538 — — — Tax benefit on significant items (56) (118) — — — Adjusted tangible net income available to common stockholders $ 25,464 $ 26,329 $ 21,590 $ 23,149 $ 22,372
Non-GAAP Reconciliation (continued) 22 As of or For the Three Months Ended Recast Recast Recast (dollars in thousands, except share and per share data, ratios annualized, where applicable) March 31, 2023 December 31, 2022 September30, 2022 June 30, 2022 March 31, 2022 Pre-tax pre-provision return on average assets: Pre-tax pre-provision net income $ 42,063 $ 37,559 $ 34,637 $ 32,448 $ 33,918 Average total assets 7,345,151 7,266,053 7,137,472 6,966,564 6,697,476 Pre-tax pre-provision return on average assets 2.32% 2.05% 1.93% 1.87% 2.05% Adjusted pre-tax pre-provision return on average assets: Adjusted pre-tax pre-provision net income $ 42,572 $ 38,469 $ 34,637 $ 32,448 $ 33,918 Average total assets 7,345,151 7,266,053 7,137,472 6,966,564 6,697,476 Adjusted pre-tax pre-provision return on average assets 2.35% 2.10% 1.93% 1.87% 2.05% Net interest margin, fully taxable equivalent Net interest income, fully taxable equivalent $ 75,926 $ 76,818 $ 68,863 $ 61,997 $ 58,567 Total average interest-earning assets 7,009,144 6,922,889 6,763,916 6,572,416 6,252,866 Net interest margin, fully taxable equivalent 4.39% 4.40% 4.04% 3.78% 3.80% Non-interest income to total revenues: Non-interest income $ 15,145 $ 11,455 $ 12,043 $ 14,273 $ 19,543 Total revenues 90,863 88,059 80,678 76,033 77,874 Non-interest income to total revenues 16.67% 13.01% 14.93% 18.77% 25.09% Adjusted non-interest expense to average assets: Adjusted non-interest expense $ 48,291 $ 49,590 $ 46,041 $ 43,585 $ 43,956 Average total assets 7,345,151 7,266,053 7,137,472 6,966,564 6,697,476 Adjusted non-interest expense to average assets 2.67% 2.71% 2.56% 2.51% 2.66% Adjusted efficiency ratio: Adjusted non-interest expense excluding amortization of intangible assets $ 46,836 $ 47,994 $ 44,430 $ 41,717 $ 42,360 Total revenues 90,863 88,059 80,678 76,033 77,874 Adjusted efficiency ratio 51.54% 54.50% 55.07% 54.87% 54.40% Adjusted return on average assets: Adjusted net income $ 24,398 $ 25,159 $ 20,409 $ 21,780 $ 21,398 Average total assets 7,345,151 7,266,053 7,137,472 6,966,564 6,697,476 Adjusted return on average assets 1.35% 1.37% 1.13% 1.25% 1.30% Adjusted return on average stockholders' equity: Adjusted net income $ 24,398 $ 25,159 $ 20,409 $ 21,780 $ 21,398 Average stockholders' equity 784,289 748,292 765,821 769,658 822,053 Adjusted return on average stockholders' equity 12.62% 13.34% 10.57% 11.35% 10.56%
Non-GAAP Reconciliation (continued) 23 As of or For the Three Months Ended Recast Recast Recast March 31, 2023 December 31, 2022 September30, 2022 June 30, 2022 March 31, 2022 Tangible common equity to tangible assets: Tangible common equity $ 638,218 $ 606,929 $ 575,321 $ 593,554 $ 613,699 Tangible assets 7,372,914 7,204,054 7,106,793 6,961,936 6,661,496 Tangible common equity to tangible assets 8.66% 8.42% 8.10% 8.53% 9.21% Tangible common stockholders' equity, excluding accumulated other comprehensive loss to tangible assets, excluding accumulated other comprehensive loss Tangible common stockholders' equity, excluding accumulated other comprehensive loss $ 746,360 $ 724,479 $ 700,219 $ 684,816 $ 670,087 Tangible assets, excluding accumulated other comprehensive loss: 7,481,056 7,321,604 7,231,691 7,053,198 6,717,884 Tangible common stockholders' equity, excluding accumulated other comprehensive loss to tangible assets, excluding accumulated other comprehensive loss 9.98% 9.90% 9.68% 9.71% 9.97% Return on average tangible common stockholders' equity: Tangible net income available to common stockholders $ 25,011 $ 25,537 $ 21,590 $ 23,149 $ 22,372 Average tangible common stockholders' equity 626,108 588,612 604,529 606,590 647,242 Return on average tangible common stockholders' equity 16.20% 17.21% 14.17% 15.31% 14.02% Adjusted return on average tangible common stockholders' equity: Adjusted tangible net income available to common stockholders $ 25,464 $ 26,329 $ 21,590 $ 23,149 $ 22,372 Average tangible common stockholders' equity 626,108 588,612 604,529 606,590 647,242 Adjusted return on average tangible common stockholders' equity 16.49% 17.75% 14.17% 15.31% 14.02% Tangible book value per share: Tangible common equity $ 638,218 $ 606,929 $ 575,321 $ 593,554 $ 613,699 Common shares outstanding 37,713,427 37,492,775 37,465,902 37,669,102 37,811,582 Tangible book value per share $ 16.92 $ 16.19 $ 15.36 $ 15.76 $ 16.23 Accumulated other comprehensive loss to tangible common equity: Accumulated other comprehensive loss $ 108,142 $ 117,550 $ 124,898 $ 91,262 $ 56,388 Tangible common equity 638,218 606,929 575,321 593,554 613,699 Accumulated other comprehensive loss to tangible common equity 16.9% 19.4% 21.7% 15.4% 9.2%
