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 25, 2024
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 25, 2024, Byline Bancorp, Inc., (“Byline" or the "Company”) issued a press release announcing its financial results for the first quarter ended March 31, 2024. A copy of the press release is attached as Exhibit 99.1 and is incorporated herein by reference.
On April 25, 2024, the Company made available on its website a slide presentation regarding the Company’s first quarter 2024 financial results, which will be used as part of a publicly accessible conference call on April 26, 2024. A copy of the slide presentation is attached as Exhibit 99.2 and is incorporated herein by reference.
The information included in Item 2.02 this Current Report on Form 8-K (including the information in the attached exhibits 99.1 and 99.2) is being furnished and shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended, nor shall it be deemed incorporated by reference in any filing under the Securities Act of 1933, as amended, except as shall be expressly set forth by specific reference in any such filing.
| Item 9.01. | Financial Statements and Exhibits. |
|---|
(d) Exhibits.
| Exhibit<br><br>No. | Description | |
|---|---|---|
| 99.1 | First quarter 2024 financial results press release, dated April 25, 2024 | |
| 99.2 | Slide Presentation regarding first quarter 2024 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 judgment and analysis, which may or may not prove to be correct, and which are subject to uncertainties and contingencies outside the control of Byline and its respective affiliates, directors, employees and other representatives, which could cause actual results to differ materially from those presented in this communication.
No representations, warranties or guarantees are or will be made by Byline as to the reliability, accuracy or completeness of any forward-looking statements contained in this communication or that such forward-looking statements are or will remain based on reasonable assumptions. You should not place undue reliance on any forward-looking statements contained in this communication.
Certain risks and important factors that could affect Byline’s future results are identified in our Annual Report on Form 10-K and other reports we file with the Securities and Exchange Commission, including among other things under the heading “Risk Factors” in our Annual Report on Form 10-K for the year ended December 31, 2023. Any forward-looking statement speaks only as of the date on which it is made, and Byline undertakes no obligation to update any forward-looking statement, whether to reflect events or circumstances after the date on which the statement is made, to reflect new information or the occurrence of unanticipated events, or otherwise unless required under the federal securities laws.
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 25, 2024 | By: | /s/ Roberto R. Herencia |
| Name: | Roberto R. Herencia | |
| Title: | Executive Chairman and Chief Executive Officer |
EX-99.1
Exhibit 99.1
Byline Bancorp, Inc. Reports First Quarter 2024 Financial Results
First quarter net income of $30.4 million, $0.70 diluted earnings per share
Chicago, IL, April 25, 2024 – Byline Bancorp, Inc. (NYSE: BY), today reported:
| For the quarter | First Quarter Highlights | ||||||
|---|---|---|---|---|---|---|---|
| 1Q24 | 4Q23 | 1Q23 | |||||
| Financial Results ( in thousands) | • ROAA of 1.36% | ||||||
| $ | 85,541 | $ | 86,285 | $ | 75,718 | ||
| 15,473 | 14,503 | 15,145 | • PTPP ROAA of 2.10%(1) | ||||
| 101,014 | 100,788 | 90,863 | |||||
| 53,809 | 53,584 | 48,800 | • ROTCE of 15.88%(1) | ||||
| 47,205 | 47,204 | 42,063 | |||||
| 6,643 | 7,235 | 9,825 | • TCE/TA of 8.76%(1); CET1 of 10.59% | ||||
| 10,122 | 10,365 | 8,293 | |||||
| $ | 30,440 | $ | 29,604 | $ | 23,945 | • TBV per share of $18.29(1), up 8.1% YoY | |
| Per Share | Income Statement | ||||||
| $ | 0.70 | $ | 0.68 | $ | 0.64 | • Total revenue of $101.0 million(1) | |
| 0.09 | 0.09 | 0.09 | |||||
| 22.88 | 22.62 | 21.10 | • Net Income of $30.4 million | ||||
| 18.29 | 17.98 | 16.92 | |||||
| • PTPP of $47.2 million(1) | |||||||
| Balance Sheet & Credit Quality ( in thousands) | |||||||
| $ | 7,350,202 | $ | 7,176,999 | $ | 5,812,652 | • Tax equivalent NIM of 4.01%(1) | |
| 6,801,782 | 6,702,311 | 5,543,711 | |||||
| 6,211 | 12,186 | 1,171 | • Efficiency ratio of 51.94%(1) | ||||
| 102,366 | 101,686 | 90,465 | |||||
| 1.51% | 1.52% | 1.64% | Balance Sheet | ||||
| • Deposit growth of $173.2 million, or 9.7%(2) | |||||||
| Select Ratios (annualized where applicable) | |||||||
| 51.94% | 51.63% | 52.10% | • Total loans and leases grew $99.5 million, | ||||
| 1.36% | 1.34% | 1.32% | or 6.0%(2) | ||||
| 12.26% | 12.56% | 12.38% | |||||
| 15.88% | 16.68% | 16.20% | • Total assets grew $528.5 million, or 23.9%(2) | ||||
| 4.00% | 4.08% | 4.38% | |||||
| 10.72% | 11.15% | 10.57% | • Stockholders' equity exceeded $1.0 billion | ||||
| 8.76% | 9.06% | 8.66% | |||||
| 10.59% | 10.35% | 10.27% | • Loan/deposit ratio decreased to 92.54% |
All values are in US Dollars.
| CEO/President Commentary |
|---|
| Roberto R. Herencia, Executive Chairman and CEO of Byline Bancorp, commented, "Our team continues to execute well on our strategy and this quarter was no exception. We reported strong financial results while surpassing $9.0 billion in total assets and $1.0 billion in stockholders’ equity. We remain optimistic about our opportunities to execute on our strategy in the future to further enhance the value of our franchise, while becoming the preeminent commercial bank in Chicago."<br><br>Alberto J. Paracchini, President of Byline Bancorp, added, "We had a solid start to 2024 and were pleased with our results for quarter. Earnings and profitability remained robust and we had nice growth in loans and deposits. Credit quality remained stable and expenses continue to remain well managed. Our balance sheet remains strong, giving us flexibility to grow the business and |
(1) Represents non-GAAP financial measures. See “Reconciliation of non-GAAP Financial Measures” for a reconciliation to the most directly comparable GAAP financial measure.
(2) Annualized
Byline Bancorp, Inc.
Page 2 of 13
| take advantage of opportunities in the market. I want to thank our employees for their continued hard work in serving our clients." |
|---|
Board Declares Cash Dividend of $0.09 per Share
On April 23, 2024, the Company's Board of Directors declared a cash dividend of $0.09 per share, payable on May 21, 2024, to stockholders of record of the Company's common stock as of May 7, 2024.
STATEMENTS OF OPERATIONS HIGHLIGHTS
Net Interest Income
Net interest income for the first quarter of 2024 was $85.5 million, a decrease of $744,000, or 0.9%, from the fourth quarter of 2023. The decrease in net interest income was primarily due to an increase of $2.7 million in deposit interest expense primarily due to time deposit growth and higher rates paid on deposits, and an increase of $773,000 in other borrowing interest expense due to increased borrowings, offset by lower borrowing costs. The decrease was partially offset by an increase of $2.5 million in other interest and dividend income mainly due to interest income earned on funds held with the Federal Reserve Bank.
Tax-equivalent net interest margin(1) for the first quarter of 2024 was 4.01%, a decrease of eight basis points compared to the fourth quarter of 2023. Total net loan accretion income impact on the margin contributed 20 basis points to the net interest margin for the current quarter compared to 24 basis points for the prior quarter.
The average cost of total deposits was 2.56% for the first quarter of 2024, an increase of 14 basis points compared to the fourth quarter of 2023, as a result of higher rates on time deposits and money market accounts. Average non-interest-bearing demand deposits were 25.9% of average total deposits for the current quarter compared to 27.5% during the prior quarter.
Provision for Credit Losses
The provision for credit losses was $6.6 million for the first quarter of 2024, a decrease of $592,000 compared to $7.2 million for the fourth quarter of 2023, mainly attributed to a smaller allocation to individually assessed loans, offset by growth in the loan and lease portfolio. The provision for credit losses for the quarter is comprised of a provision for loan and lease losses of $6.9 million and a recapture for unfunded commitments of $248,000.
Non-interest Income
Non-interest income for the first quarter of 2024 was $15.5 million, an increase of $970,000, or 6.7%, compared to $14.5 million for the fourth quarter of 2023. The increase in total non-interest income was primarily due to a $1.0 million increase in other non-interest income due to increased income on derivatives and gains on the sales of leased equipment, and a $531,000 decrease in the downward valuation of the loan servicing asset reflecting lower discount rates. These were partially offset by a $449,000 decrease in the change in fair value of equity securities.
Net gains on sales of loans were $5.5 million for the current quarter, an increase of $53,000 compared to the prior quarter. During the first quarter of 2024, we sold $72.5 million of U.S. government guaranteed loans compared to $89.1 million during the fourth quarter of 2023.
Non-interest Expense
Non-interest expense for the first quarter of 2024 was $53.8 million, an increase of $225,000, or 0.4%, from $53.6 million for the fourth quarter of 2023. The increase in total non-interest expense was mainly due to an increase of $2.0 million in salaries and employee benefits primarily due to increases in payroll taxes due to annual counter resets, and an increase of $938,000 in occupancy and equipment expense, net, due to higher real estate taxes and maintenance expense. These increases were offset by a $2.0 million decrease in impairment charges on assets held for sale, and an $837,000 decrease in data processing expenses due to decreased merger-related expenses. Other non-interest expense includes $1.1 million of charges related to branch consolidations incurred during the first quarter of 2024.
Our efficiency ratio was 51.94% for the first quarter of 2024 compared to 51.63% for the fourth quarter of 2023, an increase of 31 basis points. Excluding significant items, our adjusted efficiency ratio(1) for the first quarter 2024 was 51.75%, compared to 48.64% for the fourth quarter of 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.
Byline Bancorp, Inc.
Page 3 of 13
Income Taxes
We recorded income tax expense of $10.1 million during the first quarter of 2024, compared to $10.4 million during the fourth quarter of 2023. The effective tax rates were 25.0% and 25.9% for the first quarter of 2024 and fourth quarter of 2023, respectively.
(1) Represents non-GAAP financial measures. See “Reconciliation of non-GAAP Financial Measures” for a reconciliation of our non-GAAP measures to the most directly comparable GAAP financial measure.
Byline Bancorp, Inc.
Page 4 of 13
STATEMENTS OF FINANCIAL CONDITION HIGHLIGHTS
Assets
Total assets were $9.4 billion as of March 31, 2024, an increase of $528.5 million, or 6.0%, compared to $8.9 billion at December 31, 2023. The increase was primarily due to an increase in cash and cash equivalents of $410.7 million, inclusive of $200.0 million in short-term investments, and an increase in net loans and leases held for investment of $93.2 million mainly due to growth in commercial and industrial originations, offset by a decline of $52.0 million in commercial real estate.
Asset and Credit Quality
The ACL was $102.4 million as of March 31, 2024, an increase of $680,000, or 0.7%, from $101.7 million at December 31, 2023. Net charge-offs of loans and leases during the first quarter of 2024 were $6.2 million, or 0.37% of average loans and leases, on an annualized basis. This was a decrease of $6.0 million compared to net charge-offs of $12.2 million, or 0.73% of average loans and leases, during the fourth quarter of 2023. The decrease is primarily due to lower charge-offs in the commercial and industrial and commercial real estate loan portfolios.
Non-performing assets were $68.7 million, or 0.73% of total assets, as of March 31, 2024, an increase of $3.4 million from $65.3 million, or 0.74% of total assets, at December 31, 2023. The increase was primarily the result of migration within the government guaranteed loan portfolio to non-accrual status. The government guaranteed portion of non-accrual loans was $7.1 million at March 31, 2024 compared to $4.2 million at December 31, 2023.
Deposits and Other Liabilities
Total deposits increased $173.2 million to $7.4 billion at March 31, 2024 compared to $7.2 billion at December 31, 2023. The increase in deposits in the current quarter was mainly due to increases in time deposits and interest bearing checking accounts. Time deposit growth of $137.7 million was principally due to increases in consumer time deposits from deposit campaigns. Interest-bearing demand deposits increased $109.5 million primarily due to growth in commercial deposits.
Total borrowings and other liabilities were $1.1 billion at March 31, 2024, an increase of $336.4 million from $714.8 million at December 31, 2023. The increase was primarily driven by a $200.0 million advance under the Bank Term Funding Program and increases in Federal Home Loan Bank advances, offset by a decrease of $11.3 million as a result of the repayment of the amount outstanding under our revolving line of credit.
Stockholders’ Equity
Total stockholders’ equity grew to $1.0 billion at March 31, 2024, an increase of $18.9 million from $990.2 million at December 31, 2023. The quarterly increase was primarily due to increased retained earnings from net income.
(1) Represents non-GAAP financial measures. See “Reconciliation of non-GAAP Financial Measures” for a reconciliation of our non-GAAP measures to the most directly comparable GAAP financial measure.
Byline Bancorp, Inc.
Page 5 of 13
Conference Call, Webcast and Slide Presentation
We will host a conference call and webcast at 9:00 a.m. Central Time on Friday, April 26, 2024, to discuss our quarterly financial results. Analysts and investors may participate in the question-and-answer session. The call can be accessed via telephone at (833) 470-1428; passcode 371735. A recorded replay can be accessed through May 10, 2024, by dialing (866) 813-9403; passcode: 454029.
A slide presentation relating to our first quarter 2024 results will be accessible prior to the conference call. The slide presentation and webcast of the conference call can be accessed on our investor relations website at www.bylinebancorp.com.
About Byline Bancorp, Inc.
Headquartered in Chicago, Byline Bancorp, Inc. is the parent company of Byline Bank, a full service commercial bank serving small- and medium-sized businesses, financial sponsors, and consumers. Byline Bank has approximately $9.4 billion in assets and operates 48 branch locations throughout the Chicago and Milwaukee metropolitan areas. Byline Bank offers a broad range of commercial and community banking products and services including small ticket equipment leasing solutions and is one of the top Small Business Administration lenders in the United States.
Forward-Looking Statements
This communication contains forward-looking statements within the meaning of the U.S. federal securities laws. Forward-looking statements include, without limitation, statements concerning plans, estimates, calculations, forecasts and projections with respect to the anticipated future performance of the Company. These statements are often, but not always, made through the use of words or phrases such as ‘‘may’’, ‘‘might’’, ‘‘should’’, ‘‘could’’, ‘‘predict’’, ‘‘potential’’, ‘‘believe’’, ‘‘expect’’, ‘‘continue’’, ‘‘will’’, ‘‘anticipate’’, ‘‘seek’’, ‘‘estimate’’, ‘‘intend’’, ‘‘plan’’, ‘‘projection’’, ‘‘would’’, ‘‘annualized’’, “target” and ‘‘outlook’’, or the negative version of those words or other comparable words or phrases of a future or forward-looking nature. Forward-looking statements involve estimates and known and unknown risks, and reflect various assumptions and involve elements of subjective judgment and analysis, which may or may not prove to be correct, and which are subject to uncertainties and contingencies outside the control of Byline and its respective affiliates, directors, employees and other representatives, which could cause actual results to differ materially from those presented in this communication.
No representations, warranties or guarantees are or will be made by Byline as to the reliability, accuracy or completeness of any forward-looking statements contained in this communication or that such forward-looking statements are or will remain based on reasonable assumptions. You should not place undue reliance on any forward-looking statements contained in this communication.
Certain risks and important factors that could affect Byline’s future results are identified in our Annual Report on Form 10-K and other reports we file with the Securities and Exchange Commission, including among other things under the heading “Risk Factors” in our Annual Report on Form 10-K for the year ended December 31, 2023. Any forward-looking statement speaks only as of the date on which it is made, and Byline undertakes no obligation to update any forward-looking statement, whether to reflect events or circumstances after the date on which the statement is made, to reflect new information or the occurrence of unanticipated events, or otherwise unless required under the federal securities laws.
Contacts:
| Investors / Media: |
|---|
| Brooks Rennie |
| Investor Relations Director |
| 312-660-5805 |
| brennie@bylinebank.com |
Byline Bancorp, Inc.
Page 6 of 13
BYLINE BANCORP, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION (unaudited)
| March 31, | December 31, | March 31, | |||||||
|---|---|---|---|---|---|---|---|---|---|
| (dollars in thousands) | 2024 | 2023 | 2023 | ||||||
| ASSETS | |||||||||
| Cash and due from banks | $ | 58,640 | $ | 60,431 | $ | 52,725 | |||
| Interest bearing deposits with other banks | 578,197 | 165,705 | 231,486 | ||||||
| Cash and cash equivalents | 636,837 | 226,136 | 284,211 | ||||||
| Equity and other securities, at fair value | 9,135 | 8,743 | 8,339 | ||||||
| Securities available-for-sale, at fair value | 1,379,147 | 1,342,480 | 1,164,387 | ||||||
| Securities held-to-maturity, at amortized cost | 1,156 | 1,157 | 2,704 | ||||||
| Restricted stock, at cost | 22,793 | 16,304 | 38,777 | ||||||
| Loans held for sale | 23,568 | 18,005 | 28,379 | ||||||
| Loans and leases: | |||||||||
| Loans and leases | 6,778,214 | 6,684,306 | 5,515,332 | ||||||
| Allowance for credit losses - loans and leases | (102,366 | ) | (101,686 | ) | (90,465 | ) | |||
| Net loans and leases | 6,675,848 | 6,582,620 | 5,424,867 | ||||||
| Servicing assets, at fair value | 20,992 | 19,844 | 20,944 | ||||||
| Premises and equipment, net | 64,466 | 66,627 | 56,098 | ||||||
| Goodwill and other intangible assets, net | 202,133 | 203,478 | 157,432 | ||||||
| Bank-owned life insurance | 97,748 | 96,900 | 82,693 | ||||||
| Deferred tax assets, net | 53,029 | 50,058 | 64,918 | ||||||
| Accrued interest receivable and other assets | 223,651 | 249,615 | 196,597 | ||||||
| Total assets | $ | 9,410,503 | $ | 8,881,967 | $ | 7,530,346 | |||
| LIABILITIES AND STOCKHOLDERS’ EQUITY | |||||||||
| LIABILITIES | |||||||||
| Non-interest-bearing demand deposits | $ | 1,851,727 | $ | 1,905,876 | $ | 1,952,045 | |||
| Interest-bearing deposits | 5,498,475 | 5,271,123 | 3,860,607 | ||||||
| Total deposits | 7,350,202 | 7,176,999 | 5,812,652 | ||||||
| Other borrowings | 721,173 | 395,190 | 662,810 | ||||||
| Subordinated notes, net | 73,909 | 73,866 | 73,735 | ||||||
| Junior subordinated debentures issued to <br> capital trusts, net | 70,567 | 70,452 | 37,442 | ||||||
| Accrued interest payable and other liabilities | 185,603 | 175,309 | 148,057 | ||||||
| Total liabilities | 8,401,454 | 7,891,816 | 6,734,696 | ||||||
| STOCKHOLDERS’ EQUITY | |||||||||
| Common stock | 452 | 451 | 390 | ||||||
| Additional paid-in capital | 708,844 | 710,488 | 598,103 | ||||||
| Retained earnings | 455,532 | 429,036 | 356,365 | ||||||
| Treasury stock | (48,869 | ) | (49,707 | ) | (51,066 | ) | |||
| Accumulated other comprehensive loss, net of tax | (106,910 | ) | (100,117 | ) | (108,142 | ) | |||
| Total stockholders’ equity | 1,009,049 | 990,151 | 795,650 | ||||||
| Total liabilities and stockholders’ equity | $ | 9,410,503 | $ | 8,881,967 | $ | 7,530,346 |
Byline Bancorp, Inc.
Page 7 of 13
BYLINE BANCORP, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS (unaudited)
| Three Months Ended | |||||||||
|---|---|---|---|---|---|---|---|---|---|
| March 31, | December 31, | March 31, | |||||||
| (dollars in thousands, except per share data) | 2024 | 2023 | 2023 | ||||||
| INTEREST AND DIVIDEND INCOME | |||||||||
| Interest and fees on loans and leases | $ | 123,792 | $ | 124,042 | $ | 92,343 | |||
| Interest on securities | 9,734 | 9,227 | 6,600 | ||||||
| Other interest and dividend income | 4,795 | 2,345 | 1,059 | ||||||
| Total interest and dividend income | 138,321 | 135,614 | 100,002 | ||||||
| INTEREST EXPENSE | |||||||||
| Deposits | 45,962 | 43,252 | 16,298 | ||||||
| Other borrowings | 3,824 | 3,051 | 5,888 | ||||||
| Subordinated notes and debentures | 2,994 | 3,026 | 2,098 | ||||||
| Total interest expense | 52,780 | 49,329 | 24,284 | ||||||
| Net interest income | 85,541 | 86,285 | 75,718 | ||||||
| PROVISION FOR CREDIT LOSSES | 6,643 | 7,235 | 9,825 | ||||||
| Net interest income after provision for<br> credit losses | 78,898 | 79,050 | 65,893 | ||||||
| NON-INTEREST INCOME | |||||||||
| Fees and service charges on deposits | 2,427 | 2,486 | 2,120 | ||||||
| Loan servicing revenue | 3,364 | 3,377 | 3,380 | ||||||
| Loan servicing asset revaluation | (703 | ) | (1,234 | ) | 656 | ||||
| ATM and interchange fees | 1,075 | 1,082 | 1,063 | ||||||
| Change in fair value of equity securities, net | 392 | 841 | 350 | ||||||
| Net gains on sales of loans | 5,533 | 5,480 | 5,148 | ||||||
| Wealth management and trust income | 1,157 | 1,256 | 924 | ||||||
| Other non-interest income | 2,228 | 1,215 | 1,504 | ||||||
| Total non-interest income | 15,473 | 14,503 | 15,145 | ||||||
| NON-INTEREST EXPENSE | |||||||||
| Salaries and employee benefits | 33,953 | 31,974 | 30,394 | ||||||
| Occupancy and equipment expense, net | 5,284 | 4,346 | 4,444 | ||||||
| Impairment charge on assets held for sale | — | 1,980 | 20 | ||||||
| Loan and lease related expenses | 685 | 649 | 963 | ||||||
| Legal, audit, and other professional fees | 2,719 | 2,352 | 3,114 | ||||||
| Data processing | 4,145 | 4,982 | 3,783 | ||||||
| Net (gain) loss recognized on other real estate<br> owned and other related expenses | (98 | ) | 89 | (103 | ) | ||||
| Other intangible assets amortization expense | 1,345 | 1,550 | 1,455 | ||||||
| Other non-interest expense | 5,776 | 5,662 | 4,730 | ||||||
| Total non-interest expense | 53,809 | 53,584 | 48,800 | ||||||
| INCOME BEFORE PROVISION FOR INCOME TAXES | 40,562 | 39,969 | 32,238 | ||||||
| PROVISION FOR INCOME TAXES | 10,122 | 10,365 | 8,293 | ||||||
| NET INCOME | $ | 30,440 | $ | 29,604 | $ | 23,945 | |||
| EARNINGS PER COMMON SHARE | |||||||||
| Basic | $ | 0.70 | $ | 0.69 | $ | 0.65 | |||
| Diluted | $ | 0.70 | $ | 0.68 | $ | 0.64 |
Byline Bancorp, Inc.
Page 8 of 13
BYLINE BANCORP, INC. AND SUBSIDIARIES
SELECTED FINANCIAL DATA (unaudited)
| As of or For the Three Months Ended | |||||||||
|---|---|---|---|---|---|---|---|---|---|
| (dollars in thousands, except share | March 31, | December 31, | March 31, | ||||||
| and per share data) | 2024 | 2023 | 2023 | ||||||
| Earnings per Common Share | |||||||||
| Basic earnings per common share | $ | 0.70 | $ | 0.69 | $ | 0.65 | |||
| Diluted earnings per common share | $ | 0.70 | $ | 0.68 | $ | 0.64 | |||
| Adjusted diluted earnings per common share(1)(3) | $ | 0.70 | $ | 0.73 | $ | 0.65 | |||
| Weighted average common shares outstanding (basic) | 43,258,087 | 43,065,294 | 36,955,085 | ||||||
| Weighted average common shares outstanding (diluted) | 43,727,344 | 43,537,778 | 37,539,912 | ||||||
| Common shares outstanding | 44,108,387 | 43,764,056 | 37,713,427 | ||||||
| Cash dividends per common share | $ | 0.09 | $ | 0.09 | $ | 0.09 | |||
| Dividend payout ratio on common stock | 12.86 | % | 13.24 | % | 14.06 | % | |||
| Book value per common share | $ | 22.88 | $ | 22.62 | $ | 21.10 | |||
| Tangible book value per common share(1) | $ | 18.29 | $ | 17.98 | $ | 16.92 | |||
| Key Ratios and Performance Metrics <br> (annualized where applicable) | |||||||||
| Net interest margin | 4.00 | % | 4.08 | % | 4.38 | % | |||
| Net interest margin, fully taxable equivalent (1)(4) | 4.01 | % | 4.09 | % | 4.39 | % | |||
| Average cost of deposits | 2.56 | % | 2.42 | % | 1.15 | % | |||
| Efficiency ratio(1)(2) | 51.94 | % | 51.63 | % | 52.10 | % | |||
| Adjusted efficiency ratio(1)(2)(3) | 51.75 | % | 48.64 | % | 51.54 | % | |||
| Non-interest income to total revenues(1) | 15.32 | % | 14.39 | % | 16.67 | % | |||
| Non-interest expense to average assets | 2.40 | % | 2.42 | % | 2.69 | % | |||
| Adjusted non-interest expense to average assets(1)(3) | 2.39 | % | 2.28 | % | 2.67 | % | |||
| Return on average stockholders' equity | 12.26 | % | 12.56 | % | 12.38 | % | |||
| Adjusted return on average stockholders' equity(1)(3) | 12.31 | % | 13.50 | % | 12.62 | % | |||
| Return on average assets | 1.36 | % | 1.34 | % | 1.32 | % | |||
| Adjusted return on average assets(1)(3) | 1.36 | % | 1.44 | % | 1.35 | % | |||
| Pre-tax pre-provision return on average assets(1) | 2.10 | % | 2.13 | % | 2.32 | % | |||
| Adjusted pre-tax pre-provision return on average assets(1)(3) | 2.11 | % | 2.27 | % | 2.35 | % | |||
| Return on average tangible common stockholders' equity(1) | 15.88 | % | 16.68 | % | 16.20 | % | |||
| Adjusted return on average tangible common <br> stockholders' equity(1)(3) | 15.95 | % | 17.89 | % | 16.49 | % | |||
| Non-interest-bearing deposits to total deposits | 25.19 | % | 26.56 | % | 33.58 | % | |||
| Loans and leases held for sale and loans and lease <br> held for investment to total deposits | 92.54 | % | 93.39 | % | 95.37 | % | |||
| Deposits to total liabilities | 87.49 | % | 90.94 | % | 86.31 | % | |||
| Deposits per branch | $ | 153,129 | $ | 149,521 | $ | 152,965 | |||
| Asset Quality Ratios | |||||||||
| Non-performing loans and leases to total loans and leases <br> held for investment, net before ACL | 1.00 | % | 0.96 | % | 0.84 | % | |||
| Total non-performing assets as a percentage<br> of total assets | 0.73 | % | 0.74 | % | 0.67 | % | |||
| ACL to total loans and leases held for investment, net before ACL | 1.51 | % | 1.52 | % | 1.64 | % | |||
| Net charge-offs (annualized) to average total loans and leases held for <br> investment, net before ACL - loans and leases | 0.37 | % | 0.73 | % | 0.09 | % | |||
| Capital Ratios | |||||||||
| Common equity to total assets | 10.72 | % | 11.15 | % | 10.57 | % | |||
| Tangible common equity to tangible assets(1) | 8.76 | % | 9.06 | % | 8.66 | % | |||
| Leverage ratio | 10.91 | % | 10.86 | % | 10.46 | % | |||
| Common equity tier 1 capital ratio | 10.59 | % | 10.35 | % | 10.27 | % | |||
| Tier 1 capital ratio | 11.62 | % | 11.39 | % | 10.90 | % | |||
| Total capital ratio | 13.66 | % | 13.38 | % | 13.19 | % |
(1) Represents a non-GAAP financial measure. See “Reconciliation of non-GAAP Financial Measures” for a reconciliation of our non-GAAP measures to the most directly comparable GAAP financial measure.
(2) Represents non-interest expense less amortization of intangible assets divided by net interest income and non-interest income.
(3) Calculation excludes merger-related expenses and impairment charges on assets held for sale and ROU assets.
(4) Interest income and rates include the effects of a tax equivalent adjustment to adjust tax exempt investment income on tax exempt investment securities to a fully taxable basis, assuming a federal income tax rate of 21%.
Byline Bancorp, Inc.
Page 9 of 13
BYLINE BANCORP, INC. AND SUBSIDIARIES
QUARTER-TO-DATE STATEMENT OF AVERAGE INTEREST-EARNING ASSETS AND AVERAGE INTEREST-BEARING LIABILITIES (unaudited)
| For the Three Months Ended | ||||||||||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| March 31, 2024 | December 31, 2023 | March 31, 2023 | ||||||||||||||||||||||
| (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 | $ | 339,449 | $ | 3,828 | 4.54 | % | $ | 201,862 | $ | 1,822 | 3.58 | % | $ | 97,578 | $ | 442 | 1.84 | % | ||||||
| Loans and leases(1) | 6,681,488 | 123,792 | 7.45 | % | 6,632,827 | 124,042 | 7.42 | % | 5,484,372 | 92,343 | 6.83 | % | ||||||||||||
| Taxable securities | 1,422,661 | 9,822 | 2.78 | % | 1,389,580 | 8,848 | 2.53 | % | 1,275,377 | 6,431 | 2.04 | % | ||||||||||||
| Tax-exempt securities(2) | 159,984 | 1,112 | 2.80 | % | 163,608 | 1,142 | 2.77 | % | 151,817 | 994 | 2.65 | % | ||||||||||||
| Total interest-earning assets | $ | 8,603,582 | $ | 138,554 | 6.48 | % | $ | 8,387,877 | $ | 135,854 | 6.43 | % | $ | 7,009,144 | $ | 100,210 | 5.80 | % | ||||||
| Allowance for credit losses - <br> loans and leases | (102,256 | ) | (106,474 | ) | (84,321 | ) | ||||||||||||||||||
| All other assets | 529,615 | 506,233 | 420,328 | |||||||||||||||||||||
| TOTAL ASSETS | $ | 9,030,941 | $ | 8,787,636 | $ | 7,345,151 | ||||||||||||||||||
| LIABILITIES AND STOCKHOLDERS’<br> EQUITY | ||||||||||||||||||||||||
| Deposits | ||||||||||||||||||||||||
| Interest checking | $ | 590,406 | $ | 2,429 | 1.65 | % | $ | 570,706 | $ | 2,335 | 1.62 | % | $ | 606,008 | $ | 2,494 | 1.67 | % | ||||||
| Money market accounts | 2,237,324 | 19,660 | 3.53 | % | 2,159,841 | 18,730 | 3.44 | % | 1,465,677 | 7,728 | 2.14 | % | ||||||||||||
| Savings | 531,912 | 197 | 0.15 | % | 560,372 | 208 | 0.15 | % | 613,590 | 227 | 0.15 | % | ||||||||||||
| Time deposits | 1,992,357 | 23,676 | 4.78 | % | 1,861,279 | 21,979 | 4.68 | % | 966,409 | 5,849 | 2.45 | % | ||||||||||||
| Total interest-bearing <br> deposits | 5,351,999 | 45,962 | 3.45 | % | 5,152,198 | 43,252 | 3.33 | % | 3,651,684 | 16,298 | 1.81 | % | ||||||||||||
| Other borrowings | 472,644 | 3,824 | 3.25 | % | 395,711 | 3,051 | 3.06 | % | 573,433 | 5,852 | 4.14 | % | ||||||||||||
| Federal funds purchased | — | — | 0.00 | % | — | — | 0.00 | % | 2,778 | 36 | 5.30 | % | ||||||||||||
| Subordinated notes and <br> debentures | 144,387 | 2,994 | 8.34 | % | 144,230 | 3,026 | 8.32 | % | 111,101 | 2,098 | 7.66 | % | ||||||||||||
| Total borrowings | 617,031 | 6,818 | 4.44 | % | 539,941 | 6,077 | 4.47 | % | 687,312 | 7,986 | 4.71 | % | ||||||||||||
| Total interest-bearing liabilities | $ | 5,969,030 | $ | 52,780 | 3.56 | % | $ | 5,692,139 | $ | 49,329 | 3.44 | % | $ | 4,338,996 | $ | 24,284 | 2.27 | % | ||||||
| Non-interest-bearing <br> demand deposits | 1,874,322 | 1,950,644 | 2,076,613 | |||||||||||||||||||||
| Other liabilities | 188,783 | 209,656 | 145,253 | |||||||||||||||||||||
| Total stockholders’ equity | 998,806 | 935,197 | 784,289 | |||||||||||||||||||||
| TOTAL LIABILITIES AND<br> STOCKHOLDERS’ EQUITY | $ | 9,030,941 | $ | 8,787,636 | $ | 7,345,151 | ||||||||||||||||||
| Net interest spread(3) | 2.92 | % | 2.99 | % | 3.53 | % | ||||||||||||||||||
| Net interest income, fully <br> taxable equivalent | $ | 85,774 | $ | 86,525 | $ | 75,926 | ||||||||||||||||||
| Net interest margin, fully <br> taxable equivalent(2)(4) | 4.01 | % | 4.09 | % | 4.39 | % | ||||||||||||||||||
| Less: Tax-equivalent adjustment | 233 | 0.01 | % | 240 | 0.01 | % | 208 | 0.01 | % | |||||||||||||||
| Net interest income | $ | 85,541 | $ | 86,285 | $ | 75,718 | ||||||||||||||||||
| Net interest margin(4) | 4.00 | % | 4.08 | % | 4.38 | % | ||||||||||||||||||
| Net loan accretion impact <br> on margin | $ | 4,284 | 0.20 | % | $ | 5,110 | 0.24 | % | $ | 729 | 0.04 | % |
(1) Loan and lease balances are net of deferred origination fees and costs and initial direct costs. Non-accrual loans and leases are included in total loan and lease balances.
(2) Interest income and rates include the effects of a tax equivalent adjustment to adjust tax exempt investment income on tax exempt investment securities to a fully taxable basis, assuming a federal income tax rate of 21%.
(3) Represents the average rate earned on interest-earning assets minus the average rate paid on interest-bearing liabilities.
(4) Represents net interest income (annualized) divided by total average earning assets.
(5) Average balances are average daily balances.
Byline Bancorp, Inc.
Page 10 of 13
BYLINE BANCORP, INC. AND SUBSIDIARIES
SELECTED BALANCE SHEET TABLES AND FINANCIAL RATIOS (unaudited)
The following table presents our allocation of originated, purchased credit deteriorated (PCD), and acquired non-credit-deteriorated loans and leases at the dates indicated:
| March 31, 2024 | December 31, 2023 | March 31, 2023 | ||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| (dollars in thousands) | Amount | % of Total | Amount | % of Total | Amount | % of Total | ||||||||||||
| Originated loans and leases: | ||||||||||||||||||
| Commercial real estate | $ | 1,879,149 | 27.7 | % | $ | 1,907,029 | 28.5 | % | $ | 1,749,808 | 31.7 | % | ||||||
| Residential real estate | 488,887 | 7.2 | % | 465,133 | 7.0 | % | 441,291 | 8.0 | % | |||||||||
| Construction, land development, and<br> other land | 416,996 | 6.2 | % | 415,162 | 6.2 | % | 446,763 | 8.1 | % | |||||||||
| Commercial and industrial | 2,420,952 | 35.7 | % | 2,311,563 | 34.6 | % | 2,061,267 | 37.4 | % | |||||||||
| Installment and other | 2,855 | 0.0 | % | 2,919 | 0.0 | % | 1,603 | 0.0 | % | |||||||||
| Leasing financing receivables | 691,617 | 10.2 | % | 665,239 | 10.0 | % | 552,174 | 10.0 | % | |||||||||
| Total originated loans and leases | $ | 5,900,456 | 87.0 | % | $ | 5,767,045 | 86.3 | % | $ | 5,252,906 | 95.2 | % | ||||||
| Purchased credit deteriorated loans: | ||||||||||||||||||
| Commercial real estate | $ | 117,460 | 1.7 | % | $ | 137,807 | 2.1 | % | $ | 39,000 | 0.7 | % | ||||||
| Residential real estate | 39,535 | 0.6 | % | 42,510 | 0.6 | % | 30,070 | 0.6 | % | |||||||||
| Construction, land development, and<br> other land | 26,418 | 0.4 | % | 25,331 | 0.4 | % | 345 | 0.0 | % | |||||||||
| Commercial and industrial | 18,100 | 0.3 | % | 19,460 | 0.3 | % | 1,745 | 0.0 | % | |||||||||
| Installment and other | 118 | 0.0 | % | 125 | 0.0 | % | 134 | 0.0 | % | |||||||||
| Total purchased credit deteriorated loans | $ | 201,631 | 3.0 | % | $ | 225,233 | 3.4 | % | $ | 71,294 | 1.3 | % | ||||||
| Acquired non-credit-deteriorated loans <br> and leases: | ||||||||||||||||||
| Commercial real estate | $ | 271,720 | 4.0 | % | $ | 275,476 | 4.1 | % | $ | 140,576 | 2.6 | % | ||||||
| Residential real estate | 204,589 | 3.0 | % | 211,887 | 3.2 | % | 27,975 | 0.5 | % | |||||||||
| Construction, land development, and<br> other land | 85,553 | 1.3 | % | 86,344 | 1.3 | % | — | 0.0 | % | |||||||||
| Commercial and industrial | 113,673 | 1.7 | % | 117,538 | 1.7 | % | 20,793 | 0.4 | % | |||||||||
| Installment and other | 166 | 0.0 | % | 156 | 0.0 | % | 85 | 0.0 | % | |||||||||
| Leasing financing receivables | 426 | 0.0 | % | 627 | 0.0 | % | 1,703 | 0.0 | % | |||||||||
| Total acquired non-credit-deteriorated <br> loans and leases | $ | 676,127 | 10.0 | % | $ | 692,028 | 10.3 | % | $ | 191,132 | 3.5 | % | ||||||
| Total loans and leases | $ | 6,778,214 | 100.0 | % | $ | 6,684,306 | 100.0 | % | $ | 5,515,332 | 100.0 | % | ||||||
| Allowance for credit losses - loans and leases | (102,366 | ) | (101,686 | ) | (90,465 | ) | ||||||||||||
| Total loans and leases, net of allowance for<br> credit losses - loans and leases | $ | 6,675,848 | $ | 6,582,620 | $ | 5,424,867 |
The following table presents the balance and activity within the allowance for credit losses - loans and lease for the periods indicated:
| Three Months Ended | |||||||||
|---|---|---|---|---|---|---|---|---|---|
| March 31, | December 31, | March 31, | |||||||
| (dollars in thousands) | 2024 | 2023 | 2023 | ||||||
| ACL - loans and leases, beginning of period | $ | 101,686 | $ | 105,696 | $ | 81,924 | |||
| Provision for credit losses - loans and leases | 6,891 | 8,176 | 9,712 | ||||||
| Net charge-offs - loans and leases | (6,211 | ) | (12,186 | ) | (1,171 | ) | |||
| ACL - loans and leases, end of period | $ | 102,366 | $ | 101,686 | $ | 90,465 | |||
| Net charge-offs - loans and leases to average total<br> loans and leases held for investment, net before ACL | 0.37 | % | 0.73 | % | 0.09 | % | |||
| Provision for credit losses - loans and leases <br> to net charge-offs - loans and leases during the period | 1.11 | x | 0.67 | x | 8.29 | x |
Byline Bancorp, Inc.
Page 11 of 13
BYLINE BANCORP, INC. AND SUBSIDIARIES
SELECTED BALANCE SHEET TABLES AND FINANCIAL RATIOS (unaudited)
The following table presents the amounts of non-performing loans and leases and other real estate owned at the date indicated:
| March 31, 2024 | |||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Change from | |||||||||||||||
| (dollars in thousands) | March 31, 2024 | December 31, 2023 | March 31, 2023 | December 31, 2023 | March 31, 2023 | ||||||||||
| Non-performing assets: | |||||||||||||||
| Non-accrual loans and leases | $ | 67,899 | $ | 64,107 | $ | 46,536 | 5.9 | % | 45.9 | % | |||||
| Past due loans and leases 90 days or more<br> and still accruing interest | — | — | — | —% | —% | ||||||||||
| Total non-performing loans and leases | $ | 67,899 | $ | 64,107 | $ | 46,536 | 5.9 | % | 45.9 | % | |||||
| Other real estate owned | 785 | 1,200 | 3,712 | (34.6 | )% | (78.8 | )% | ||||||||
| Total non-performing assets | $ | 68,684 | $ | 65,307 | $ | 50,248 | 5.2 | % | 36.7 | % | |||||
| Total non-performing loans and leases as a<br> percentage of total loans and leases | 1.00 | % | 0.96 | % | 0.84 | % | |||||||||
| Total non-performing assets as a percentage<br> of total assets | 0.73 | % | 0.74 | % | 0.67 | % | |||||||||
| Allowance for credit losses - loans and lease <br> as a percentage of non-performing<br> loans and leases | 150.76 | % | 158.62 | % | 194.40 | % | |||||||||
| Non-performing assets guaranteed by <br> U.S. government: | |||||||||||||||
| Non-accrual loans guaranteed | $ | 7,138 | $ | 4,154 | $ | 2,335 | 71.8 | % | 205.6 | % | |||||
| Past due loans 90 days or more and still<br> accruing interest guaranteed | — | — | — | —% | —% | ||||||||||
| Total non-performing loans guaranteed | $ | 7,138 | $ | 4,154 | $ | 2,335 | 71.8 | % | 205.6 | % | |||||
| Total non-performing loans and leases <br> not guaranteed as a percentage of total <br> loans and leases | 0.90 | % | 0.90 | % | 0.80 | % | |||||||||
| Total non-performing assets not guaranteed<br> as a percentage of total assets | 0.65 | % | 0.69 | % | 0.64 | % |
The following table presents the composition of deposits at the dates indicated:
| March 31, 2024 | |||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|
| Change from | |||||||||||
| (dollars in thousands) | December 31, 2023 | March 31, 2023 | December 31, 2023 | March 31, 2023 | |||||||
| Non-interest-bearing demand deposits | 1,851,727 | $ | 1,905,876 | $ | 1,952,045 | (2.8 | )% | (5.1 | )% | ||
| Interest-bearing checking accounts | 687,142 | 577,609 | 560,837 | 19.0 | % | 22.5 | % | ||||
| Money market demand accounts | 2,263,819 | 2,266,030 | 1,453,688 | (0.1 | )% | 55.7 | % | ||||
| Other savings | 524,890 | 542,532 | 590,231 | (3.3 | )% | (11.1 | )% | ||||
| Time deposits (below 250,000) | 1,594,290 | 1,520,082 | 1,089,785 | 4.9 | % | 46.3 | % | ||||
| Time deposits (250,000 and above) | 428,334 | 364,870 | 166,066 | 17.4 | % | 157.9 | % | ||||
| Total deposits | 7,350,202 | $ | 7,176,999 | $ | 5,812,652 | 2.4 | % | 26.5 | % |
All values are in US Dollars.
Byline Bancorp, Inc.
Page 12 of 13
BYLINE BANCORP, INC. AND SUBSIDIARIES
RECONCILIATION OF NON-GAAP FINANCIAL MEASURES (unaudited)
Non-GAAP Financial Measures
This release contains certain financial information determined by methods other than in accordance with accounting principles generally accepted in the United States of America (“GAAP”). These measures include adjusted net income, adjusted diluted earnings per share, adjusted efficiency ratio, adjusted non-interest expense to average assets, tax-equivalent net interest margin, total revenue, non-interest income to total revenues, adjusted return on average stockholders’ equity, adjusted return on average assets, pre-tax pre-provision return on average assets, adjusted pre-tax pre-provision return on average assets, tangible book value per common share, tangible common equity to tangible assets, return on average tangible common stockholders' equity, and adjusted return on average tangible common stockholders' equity. Management believes that these non-GAAP financial measures provide useful information to management and investors that is supplementary to the Company’s financial condition, results of operations and cash flows computed in accordance with GAAP; however, management acknowledges that our non-GAAP financial measures have a number of limitations. As such, these disclosures should not be viewed as a substitute for results determined in accordance with GAAP financial measures that we and other companies use. Management also uses these measures for peer comparison. See below in the financial schedules included in this press release for a reconciliation of the non-GAAP financial measures to the comparable GAAP financial measures. Additionally, please refer to the Company’s Annual Report on Form 10-K for the detailed definitions of these non-GAAP financial measures.
| As of or For the Three Months Ended | |||||||||
|---|---|---|---|---|---|---|---|---|---|
| March 31, | December 31, | March 31, | |||||||
| (dollars in thousands, except per share data) | 2024 | 2023 | 2023 | ||||||
| Net income and earnings per share excluding significant items: | |||||||||
| Reported Net Income | $ | 30,440 | $ | 29,604 | $ | 23,945 | |||
| Significant items: | |||||||||
| Impairment charges on assets held for sale and ROU assets | 194 | 1,981 | 20 | ||||||
| Merger-related expenses | — | 1,035 | 489 | ||||||
| Tax benefit | (52 | ) | (793 | ) | (56 | ) | |||
| Adjusted Net Income | $ | 30,582 | $ | 31,827 | $ | 24,398 | |||
| Reported Diluted Earnings per Share | $ | 0.70 | $ | 0.68 | $ | 0.64 | |||
| Significant items: | |||||||||
| Impairment charges on assets held for sale and ROU assets | — | 0.05 | — | ||||||
| Merger-related expenses | — | 0.02 | 0.01 | ||||||
| Tax benefit | — | (0.02 | ) | — | |||||
| Adjusted Diluted Earnings per Share | $ | 0.70 | $ | 0.73 | $ | 0.65 |
Byline Bancorp, Inc.
Page 13 of 13
BYLINE BANCORP, INC. AND SUBSIDIARIES
RECONCILIATION OF NON-GAAP FINANCIAL MEASURES (continued) (unaudited)
| As of or For the Three Months Ended | |||||||||
|---|---|---|---|---|---|---|---|---|---|
| (dollars in thousands, except per share data, | March 31, | December 31, | March 31, | ||||||
| ratios annualized, where applicable) | 2024 | 2023 | 2023 | ||||||
| Adjusted non-interest expense: | |||||||||
| Non-interest expense | $ | 53,809 | $ | 53,584 | $ | 48,800 | |||
| Less: Significant items | |||||||||
| Impairment charges on assets held for sale and ROU assets | 194 | 1,981 | 20 | ||||||
| Merger-related expenses | — | 1,035 | 489 | ||||||
| Adjusted non-interest expense | $ | 53,615 | $ | 50,568 | $ | 48,291 | |||
| Adjusted non-interest expense excluding <br> amortization of intangible assets: | |||||||||
| Adjusted non-interest expense | $ | 53,615 | $ | 50,568 | $ | 48,291 | |||
| Less: Amortization of intangible assets | 1,345 | 1,550 | 1,455 | ||||||
| Adjusted non-interest expense excluding <br> amortization of intangible assets | $ | 52,270 | $ | 49,018 | $ | 46,836 | |||
| Pre-tax pre-provision net income: | |||||||||
| Pre-tax income | $ | 40,562 | $ | 39,969 | $ | 32,238 | |||
| Add: Provision for credit losses | 6,643 | 7,235 | 9,825 | ||||||
| Pre-tax pre-provision net income | $ | 47,205 | $ | 47,204 | $ | 42,063 | |||
| Adjusted pre-tax pre-provision net income: | |||||||||
| Pre-tax pre-provision net income | $ | 47,205 | $ | 47,204 | $ | 42,063 | |||
| Add: Impairment charges on assets held for sale <br> and ROU assets | 194 | 1,981 | 20 | ||||||
| Add: Merger-related expenses | — | 1,035 | 489 | ||||||
| Adjusted pre-tax pre-provision net income | $ | 47,399 | $ | 50,220 | $ | 42,572 | |||
| Tax equivalent net interest income: | |||||||||
| Net interest income | $ | 85,541 | $ | 86,285 | $ | 75,718 | |||
| Add: Tax-equivalent adjustment | 233 | 240 | 208 | ||||||
| Net interest income, fully taxable equivalent | $ | 85,774 | $ | 86,525 | $ | 75,926 | |||
| Total revenue: | |||||||||
| Net interest income | $ | 85,541 | $ | 86,285 | $ | 75,718 | |||
| Add: Non-interest income | 15,473 | 14,503 | 15,145 | ||||||
| Total revenue | $ | 101,014 | $ | 100,788 | $ | 90,863 | |||
| Tangible common stockholders' equity: | |||||||||
| Total stockholders' equity | $ | 1,009,049 | $ | 990,151 | $ | 795,650 | |||
| Less: Goodwill and other intangibles | 202,133 | 203,478 | 157,432 | ||||||
| Tangible common stockholders' equity | $ | 806,916 | $ | 786,673 | $ | 638,218 | |||
| Tangible assets: | |||||||||
| Total assets | $ | 9,410,503 | $ | 8,881,967 | $ | 7,530,346 | |||
| Less: Goodwill and other intangibles | 202,133 | 203,478 | 157,432 | ||||||
| Tangible assets | $ | 9,208,370 | $ | 8,678,489 | $ | 7,372,914 | |||
| Average tangible common stockholders' equity: | |||||||||
| Average total stockholders' equity | $ | 998,806 | $ | 935,197 | $ | 784,289 | |||
| Less: Average goodwill and other intangibles | 202,773 | 204,191 | 158,181 | ||||||
| Average tangible common stockholders' equity | $ | 796,033 | $ | 731,006 | $ | 626,108 | |||
| Average tangible assets: | |||||||||
| Average total assets | $ | 9,030,941 | $ | 8,787,636 | $ | 7,345,151 | |||
| Less: Average goodwill and other intangibles | 202,773 | 204,191 | 158,181 | ||||||
| Average tangible assets | $ | 8,828,168 | $ | 8,583,445 | $ | 7,186,970 | |||
| Tangible net income available to common stockholders: | |||||||||
| Net income available to common stockholders | $ | 30,440 | $ | 29,604 | $ | 23,945 | |||
| Add: After-tax intangible asset amortization | 986 | 1,138 | 1,066 | ||||||
| Tangible net income available to common stockholders | $ | 31,426 | $ | 30,742 | $ | 25,011 | |||
| Adjusted tangible net income available to common<br> stockholders: | |||||||||
| Tangible net income available to common stockholders | $ | 31,426 | $ | 30,742 | $ | 25,011 | |||
| Impairment charges on assets held for sale and ROU assets | 194 | 1,981 | 20 | ||||||
| Merger-related expenses | — | 1,035 | 489 | ||||||
| Tax benefit on significant items | (52 | ) | (793 | ) | (56 | ) | |||
| Adjusted tangible net income available to<br> common stockholders | $ | 31,568 | $ | 32,965 | $ | 25,464 |
Byline Bancorp, Inc.
Page 14 of 13
BYLINE BANCORP, INC. AND SUBSIDIARIES
RECONCILIATION OF NON-GAAP FINANCIAL MEASURES (continued) (unaudited)
| As of or For the Three Months Ended | |||||||||
|---|---|---|---|---|---|---|---|---|---|
| (dollars in thousands, except share and per share | March 31, | December 31, | March 31, | ||||||
| data, ratios annualized, where applicable) | 2024 | 2023 | 2023 | ||||||
| Pre-tax pre-provision return on average assets: | |||||||||
| Pre-tax pre-provision net income | $ | 47,205 | $ | 47,204 | $ | 42,063 | |||
| Average total assets | 9,030,941 | 8,787,636 | 7,345,151 | ||||||
| Pre-tax pre-provision return on average assets | 2.10 | % | 2.13 | % | 2.32 | % | |||
| Adjusted pre-tax pre-provision return on average assets: | |||||||||
| Adjusted pre-tax pre-provision net income | $ | 47,399 | $ | 50,220 | $ | 42,572 | |||
| Average total assets | 9,030,941 | 8,787,636 | 7,345,151 | ||||||
| Adjusted pre-tax pre-provision return on average assets | 2.11 | % | 2.27 | % | 2.35 | % | |||
| Net interest margin, fully taxable equivalent: | |||||||||
| Net interest income, fully taxable equivalent | $ | 85,774 | $ | 86,525 | $ | 75,926 | |||
| Total average interest-earning assets | 8,603,582 | 8,387,877 | 7,009,144 | ||||||
| Net interest margin, fully taxable equivalent | 4.01 | % | 4.09 | % | 4.39 | % | |||
| Non-interest income to total revenues: | |||||||||
| Non-interest income | $ | 15,473 | $ | 14,503 | $ | 15,145 | |||
| Total revenues | 101,014 | 100,788 | 90,863 | ||||||
| Non-interest income to total revenues | 15.32 | % | 14.39 | % | 16.67 | % | |||
| Adjusted non-interest expense to average assets: | |||||||||
| Adjusted non-interest expense | $ | 53,615 | $ | 50,568 | $ | 48,291 | |||
| Average total assets | 9,030,941 | 8,787,636 | 7,345,151 | ||||||
| Adjusted non-interest expense to average assets | 2.39 | % | 2.28 | % | 2.67 | % | |||
| Adjusted efficiency ratio: | |||||||||
| Adjusted non-interest expense excluding amortization of <br> intangible assets | $ | 52,270 | $ | 49,018 | $ | 46,836 | |||
| Total revenues | 101,014 | 100,788 | 90,863 | ||||||
| Adjusted efficiency ratio | 51.75 | % | 48.64 | % | 51.54 | % | |||
| Adjusted return on average assets: | |||||||||
| Adjusted net income | $ | 30,582 | $ | 31,827 | $ | 24,398 | |||
| Average total assets | 9,030,941 | 8,787,636 | 7,345,151 | ||||||
| Adjusted return on average assets | 1.36 | % | 1.44 | % | 1.35 | % | |||
| Adjusted return on average stockholders' equity: | |||||||||
| Adjusted net income | $ | 30,582 | $ | 31,827 | $ | 24,398 | |||
| Average stockholders' equity | 998,806 | 935,197 | 784,289 | ||||||
| Adjusted return on average stockholders' equity | 12.31 | % | 13.50 | % | 12.62 | % | |||
| Tangible common equity to tangible assets: | |||||||||
| Tangible common equity | $ | 806,916 | $ | 786,673 | $ | 638,218 | |||
| Tangible assets | 9,208,370 | 8,678,489 | 7,372,914 | ||||||
| Tangible common equity to tangible assets | 8.76 | % | 9.06 | % | 8.66 | % | |||
| Return on average tangible common stockholders' equity: | |||||||||
| Tangible net income available to common stockholders | $ | 31,426 | $ | 30,742 | $ | 25,011 | |||
| Average tangible common stockholders' equity | 796,033 | 731,006 | 626,108 | ||||||
| Return on average tangible common stockholders' equity | 15.88 | % | 16.68 | % | 16.20 | % | |||
| Adjusted return on average tangible common <br> stockholders' equity: | |||||||||
| Adjusted tangible net income available to common <br> stockholders | $ | 31,568 | $ | 32,965 | $ | 25,464 | |||
| Average tangible common stockholders' equity | 796,033 | 731,006 | 626,108 | ||||||
| Adjusted return on average tangible common <br> stockholders' equity | 15.95 | % | 17.89 | % | 16.49 | % | |||
| Tangible book value per share: | |||||||||
| Tangible common equity | $ | 806,916 | $ | 786,673 | $ | 638,218 | |||
| Common shares outstanding | 44,108,387 | 43,764,056 | 37,713,427 | ||||||
| Tangible book value per share | $ | 18.29 | $ | 17.98 | $ | 16.92 |
1Q24 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, 2023. Any forward-looking statement speaks only as of the date on which it is made, and Byline undertakes no obligation to update any forward-looking statement, whether to reflect events or circumstances after the date on which the statement is made, to reflect new information or the occurrence of unanticipated events, or otherwise unless required under the federal securities laws. 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.
2.10% 2.11% Reported(1)(2) Adjusted(1)(2) 15.88% 15.95% Reported(1)(2) Adjusted(1)(2) ROTCE $0.70 $0.70 Reported Adjusted(1) 1.36% 1.36% Reported(2) Adjusted(1)(2) ROAA $30.4 million $30.6 million Reported Adjusted(1) 51.94% 51.75% Reported Adjusted(1) Efficiency Ratio First Quarter 2024 Highlights 3 Represents a non-GAAP financial measure. See “Non-GAAP Reconciliation” in the appendix. Annualized. Strong Financial Performance Net Income Diluted EPS PTPP ROAA 10.59% Common Equity Tier 1 +8% Increase in Tangible Book Value / Share YoY +9.7% Increase in Deposits(2) +6.0% Increase in Loans and Leases(2) 92.5% Loan/deposit ratio GAAP EPS of $0.70; adjusted EPS(1) of $0.70 Record Pre-Tax Pre-Provision income (1) of $47.2 million; Pre-Tax Pre-Provision ROAA(1) of 2.10% Revenue of $101.0 million, up 11% YoY Net interest income of $85.5 million, up 13% YoY Stockholders' equity exceeded $1.0 billion Net interest margin (FTE)(1) of 4.01% Loan and lease yields stood at 7.45% Disciplined expense management with operating expenses(1): $53.8 million Adj. efficiency ratio(1): 51.75% Adj. NIE/AA(1): 2.39%, down 28 bps YoY
Loan and Lease Trends ($ in millions) Total Loans & Leases and Average Yield Portfolio Composition Total loans and leases were $6.8 billion at 1Q24, an increase of $99.5 million, or 6.0% annualized from 4Q23 Originated $264.2 million in new loans, net of loan sales in 1Q24 Production driven by lease and commercial banking originations of $82.3 million and $79.1 million, respectively Payoff activity decreased by $38.1 million from 4Q23 to $214.2 million Cumulative Loan Beta(1): 43% Highlights Utilization Rates 55% LTM Average Originations and Payoffs Cumulative Beta excluding loan accretion is calculated as the change in yield on loans and leases from 4Q21 to 1Q24 divided by the change in average Fed Funds from 4Q21 to 1Q24. 4
Cost of Interest-Bearing Deposits Total deposits were $7.4 billion, up 9.7% annualized from 4Q23 Commercial deposits accounted for 45.0% of total deposits and represent 77.1% of all non-interest-bearing deposits Cost of deposits increased by 14 bps to 2.56% in 1Q24, due to mix changes Cumulative total deposit beta ~47% since the beginning of the current tightening cycle Deposit Trends ($ in millions) Deposit Composition Highlights Average Non-Interest-Bearing Deposits Deposit Beta(1) Interest-Bearing Deposits: 63% Total Deposits: 47% 5 Beta calculation is based on change in deposit cost divided by change in Fed Funds from 4Q21 to 1Q24.
Net interest income was $85.5 million, down 0.9% from 4Q23 Net interest margin decreased 8 basis points from 4Q23 to 4.00% Short term investments reduced NIM by 6 bps $50 million of cash flow hedges went effective in 1Q24 Interest Rate Sensitivity Over a One-Year Time Horizon Rates -100 bps: net interest income sensitivity reduced by 1.2% Rates -100 bps: ~$7 million or ~2.1% decline in NII or ~$1.75 million per 25 bps Ramp -100 bps: ~$5 million or ~1.4% decline in NII or ~$1.25 million per 25 bps NIM Bridge Net Interest Income and Net Interest Margin Trends ($ in millions) Net Interest Income Highlights NIM, Yields and Costs 6 Repricing Mix $86.3 Million NII $85.5 Million NII
Government Guaranteed Loan Sales $72.5 million of guaranteed loans sold in 1Q24 Loans held for sale increased to $23.6 million in 1Q24 Non-interest income was $15.5 million, up 6.7% from 4Q23 Gain on sale margins improved driven by higher premiums, offset by lower volume of loans sold Non-interest income trends remain stable QoQ, excluding FV mark on loan servicing asset Volume Sold and Average Net Premiums Non-Interest Income Trends ($ in millions) Total Non-Interest Income Highlights Net Gains on Sales of Loans 7 (1) Other includes net servicing losses in 3Q23.
(1) Non-interest expenses stood at $53.8 in 1Q24, flat QoQ and reflects: $2.0 million increase in salaries and employee benefits $0.8 million decrease in data processing expenses Consolidating two branch locations in June 2024 Incurred charges of $1.3 million in 1Q24 Expected annual cost saves of ~$1.1 million beginning in 3Q24 Efficiency Ratio Non-Interest Expense Trends ($ in millions) Non-Interest Expense Highlights Non-Interest Expense Bridge 8 Represents a non-GAAP financial measure. See “Non-GAAP Reconciliation” in the appendix. ($1.8) ($1.0) ($0.1) $0.5 $0.5 $2.1 $53.6 $53.8
Note: Delinquencies represent accruing loans and leases past due 30 days or more. Delinquencies to Total Loans and Leases represent delinquencies divided by period end loans and leases. Delinquencies Asset Quality Trends ($ in millions) Net Charge-offs NPLs / Total Loans & Leases 9 Allowance for Credit Losses (ACL) NPLs flat QoQ when excluding Government Guaranteed NPLs
Median: 61% Percent of Insured Deposits(2) Liquidity Position Strong Liquidity and Securities Portfolio Cash and cash equivalents of $636.8 million $1.4 billion investment portfolio (~99.9% AFS) $2.0 billion of available borrowing capacity Liquidity coverage of uninsured deposits ~117% as of quarter end Loans/Deposits ratio of 92.5%, down 85 basis points from 4Q23 Uninsured Deposits stood at 28.7% and trends well below all peer bank averages % of Uninsured Deposits Industry Comparisons(1) >$500B $250B - $500B $100B - $250B $50B - $100B $10B - $50B $1B - $10B Median 41.7% 32.4% 36.7% 44.3% 36.9% 30.8% Byline Bank 28.7% 28.7% 28.7% 28.7% 28.7% 28.7% 10 Source: SNL Financial, and company filings. Financial data as of quarter ended December 31, 2023 or most recent available. Source: Company’s 4Q23 Form 10-K | Calculation: (total deposits uninsured deposits) / total consolidated deposits | Byline 2023 Proxy Peer Group. Represents a non-GAAP financial measure. See “Non-GAAP Reconciliation” in the appendix. AFS Portfolio by Type Repaid holding company revolving line of credit HTM portfolio of $1.2 million ($7,000 in unrealized losses) Securities portfolio duration: 4.8 years; net of hedges: ~4.4 years Securities portfolio annual cash flow: ~$165 million Taxable securities yield of 2.78%, up 25 basis points from 4Q23 AOCI / TCE(3): ~13.2% Highlights
(1) Return on Average Tangible Common Equity Strong Capital Position Capital Ratios 11 Represents a non-GAAP financial measure. See “Non-GAAP Reconciliation” in the appendix. Strong Capital Base Common Equity Tier 1 Capital Priorities: TCE operating target range(1) is between 8% and 9%: currently at 8.76% $1.0 billion total stockholders’ equity $450 million of balance sheet hedges to protect market value risk 1. Fund Organic Growth 2. Dividend 3. M&A 4. Buyback (1)
Our Strategy Remains Consistent 12 Maintain Balance Sheet Strength Continue to Invest in the Business Capitalize on Market Opportunities Deliver Strong Financial Results Grow our Commercial Client Franchise 1 2 3 4 5 Leverage our Capabilities 6 Differentiated approach to grow loans and deposits organically in targeted market segments Maintain a strong balance sheet, ample capital flexibility and strong asset quality Continue to invest in digital capabilities to improve the customer experience and gain operational efficiencies Attract additional high-quality talent to the organization and pursue opportunistic M&A opportunities Generate consistently strong financial results for our stockholders Leverage all our capabilities to deepen share of wallet and acquire new customers
1Q24 Earnings Presentation Appendix
Granular Deposit Base 14 Consumer Deposits, $3.1 billion Commercial Deposits, $2.8 billion ~71% of Total Deposits are FDIC Insured …with limited concentration and granular customer base providing a stable source of funding Consumer Deposits(1) $4.0 billion at 3/31/24 Granular Deposit Base ~$28,000 Average Account Balance Customer Base ~125,000 Consumer Accounts Total Franchise 48 Branches Commercial Deposits $3.4 billion at 3/31/24 Granular Deposit Base ~$121,000 Average Account Balance Customer Base ~29,000 Commercial Accounts Consumer Deposits, $4.0 billion Commercial Deposits, $3.4 billion Uninsured 8% d Total Deposits $7.4 Billion as of 3/31/24 Core banking footprint in key urban MSAs in Wisconsin and a broad footprint in Chicago, IL A strength of our franchise is our well diversified deposit base… Excludes brokered deposits.
CRE Portfolio: NOO Office Represents 3.0% of Total Loans 15 Non-Owner Occupied Commercial Real Estate Portfolio ($ in millions) 3/31/24 Industrial / Warehouse $588.5 8.7% Multi-family 543.3 8.0% Retail 246.7 3.6% Office 205.5 3.0% Hotel / Motel 39.8 0.6% Mixed Use 33.9 0.5% Senior Housing / Healthcare 32.7 0.5% Other 262.1 3.9% Total $1,952.5 28.8% % of Total Loans Note: Non-Owner Occupied CRE Portfolio includes construction, land, multi-family and non-owner occupied (NOO). CRE portfolio includes owner occupied, non-owner occupied, non-farm, non-residential, construction, and multi-family loans. d Total Loans & Leases $6.8 Billion as of 3/31/24
3/31/24 12/31/23 Avg. Commitment $3.6 million $3.6 million ACL % 2.8% 3.0% NCO %(1) 3.06% 2.57% 30+ DLQ % 5.6% 5.9% NPL % 5.6% 5.9% Criticized % 24% 22% Office CRE Portfolio: Diversified Tenants and Markets NCOs / Average loans represents net charge-offs to average loans for the last twelve-month period. Tenant Classification ($ in millions) 3/31/24 Illinois $128.0 North Carolina 26.0 Wisconsin 14.5 New Jersey 11.0 Florida 7.0 Ohio 5.5 Iowa 5.2 Minnesota 3.2 New Mexico 2.2 West Virginia 1.1 Michigan 1.0 Tennessee 0.8 Total Office $205.5 CRE Office: Geographic Mix by State Office Portfolio Metrics Office Portfolio Market Type 16
(1) ($ in millions) $ Balance % of Portfolio Unguaranteed $386.0 5.7% Guaranteed 78.8 1.2% Total SBA 7(a) Loans $464.8 6.9% Unguaranteed $38.4 0.6% Guaranteed 21.1 0.3% Total USDA Loans $59.5 0.9% Unguaranteed Loan Portfolio by Industry One of the top SBA and USDA lenders in the United States Closed $135.9 million in SBC loan commitments in 1Q24, flat LQ and up 91% YoY SBA 7(a) portfolio $464.8 million, up $11.5 million from 4Q23 ACL/Unguaranteed loan balance ~7.1% $1.7 billion in serviced government guaranteed loans for investors in 1Q24 Since 2016, the unguaranteed government-guaranteed exposure has decreased from 14.6% down to 6.3% in 2024 Unguaranteed Government-Guaranteed Exposure Represents 6.3% of Total Loans On Balance Sheet SBA 7(a) & USDA Loans SBA 7(a) & USDA Closed Loan Commitments Highlights Represents sectors with less than 5% of the total portfolio. 17 $68.5 $122.3 $107.3 $129.2 $108.3
Projected Acquisition Accounting Accretion Projections are updated quarterly, assumes no prepayments and are subject to change. 18 Projected Accretion(1) ($ in millions)
Financial Summary 19 Represents a non-GAAP financial measure. See “Non-GAAP Reconciliation” in the appendix. As of or For the Three Months Ended (dollars in thousands, except per share data) March 31, December 31, March 31, 2024 2023 2023 Income Statement Net interest income $ 85,541 $ 86,285 $ 75,718 Provision for credit losses 6,643 7,235 9,825 Non-interest income 15,473 14,503 15,145 Non-interest expense 53,809 53,584 48,800 Income before provision for income taxes 40,562 39,969 32,238 Provision for income taxes 10,122 10,365 8,293 Net income $ 30,440 $ 29,604 $ 23,945 Diluted earnings per common share(1) $ 0.70 $ 0.68 $ 0.64 Balance Sheet Total loans and leases HFI $ 6,778,214 $ 6,684,306 $ 5,515,332 Total deposits 7,350,202 7,176,999 5,812,652 Tangible common equity(1) 806,916 786,673 638,218 Balance Sheet Metrics Loans and leases / total deposits 92.54% 93.39% 95.37% Tangible common equity / tangible assets(1) 8.76% 9.06% 8.66% Key Performance Ratios Net interest margin 4.00% 4.08% 4.38% Efficiency ratio 51.94% 51.63% 52.10% Adjusted efficiency ratio(1) 51.75% 48.64% 51.54% Non-interest income to total revenues 15.32% 14.39% 16.67% Non-interest expense to average assets 2.40% 2.42% 2.69% Return on average assets 1.36% 1.34% 1.32% Adjusted return on average assets(1) 1.36% 1.44% 1.35% Pre-tax pre-provision return on average assets (1) 2.10% 2.13% 2.32% Dividend payout ratio on common stock 12.86% 13.24% 14.06% Tangible book value per common share(1) $ 18.29 $ 17.98 $ 16.92
As of or For the Three Months Ended (dollars in thousands, except per share data) March 31, 2024 December 31, 2023 March 31, 2023 Net income and earnings per share excluding significant items Reported Net Income $ 30,440 $ 29,604 $ 23,945 Significant items: Impairment charges on assets held for sale and ROU asset 194 1,981 20 Merger-related expenses — 1,035 489 Tax benefit (52) (793) (56) Adjusted Net Income $ 30,582 $ 31,827 $ 24,398 Reported Diluted Earnings per Share $ 0.70 $ 0.68 $ 0.64 Significant items: Impairment charges on assets held for sale and ROU asset — 0.05 — Merger-related expenses — 0.02 0.01 Tax benefit — (0.02) — Adjusted Diluted Earnings per Share $ 0.70 $ 0.73 $ 0.65 Non-GAAP Reconciliation 20
As of or For the Three Months Ended (dollars in thousands) March 31, 2024 December 31, 2023 March 31, 2023 Adjusted non-interest expense: Non-interest expense $ 53,809 $ 53,584 $ 48,800 Less: Significant items Impairment charges on assets held for sale and ROU assets 194 1,981 20 Merger-related expenses — 1,035 489 Adjusted non-interest expense $ 53,615 $ 50,568 $ 48,291 Adjusted non-interest expense ex. amortization of intangible assets: Adjusted non-interest expense $ 53,615 $ 50,568 $ 48,291 Less: Amortization of intangible assets 1,345 1,550 1,455 Adjusted non-interest expense ex. amortization of intangible assets $ 52,270 $ 49,018 $ 46,836 Pre-tax pre-provision net income: Pre-tax income $ 40,562 $ 39,969 $ 32,238 Add: Provision for loan and lease losses 6,643 7,235 9,825 Pre-tax pre-provision net income $ 47,205 $ 47,204 $ 42,063 Adjusted pre-tax pre-provision net income: Pre-tax pre-provision net income $ 47,205 $ 47,204 $ 42,063 Add: Impairment charges on assets held for sale and ROU assets 194 1,981 20 Add: Merger-related expenses — 1,035 489 Adjusted pre-tax pre-provision net income $ 47,399 $ 50,220 $ 42,572 Tax Equivalent Net Interest Income: Net interest income $ 85,541 $ 86,285 $ 75,718 Add: Tax-equivalent adjustment 233 240 208 Net interest income, fully taxable equivalent $ 85,774 $ 86,525 $ 75,926 Total revenues: Net interest income $ 85,541 $ 86,285 $ 75,718 Add: Non-interest income 15,473 14,503 15,145 Total revenues $ 101,014 $ 100,788 $ 90,863 Non-GAAP Reconciliation (continued) 21
As of or For the Three Months Ended (dollars in thousands) March 31, 2024 December 31, 2023 March 31, 2023 Tangible common stockholders' equity: Total stockholders' equity $ 1,009,049 $ 990,151 $ 795,650 Less: Goodwill and other intangibles 202,133 203,478 157,432 Tangible common stockholders' equity $ 806,916 $ 786,673 $ 638,218 Tangible assets: Total assets $ 9,410,503 $ 8,881,967 $ 7,530,346 Less: Goodwill and other intangibles 202,133 203,478 157,432 Tangible assets $ 9,208,370 $ 8,678,489 $ 7,372,914 Tangible assets, excluding accumulated other comprehensive loss: Tangible assets $ 9,208,370 $ 8,678,489 $ 7,372,914 Less: Accumulated other comprehensive loss (106,910) (100,117) (108,142) Tangible assets, excluding accumulated other comprehensive loss: $ 9,315,280 $ 8,778,606 $ 7,481,056 Tangible common stockholders' equity, excluding accumulated other comprehensive loss: Tangible common stockholders' equity $ 806,916 $ 786,673 $ 638,218 Less: Accumulated other comprehensive loss (106,910) (100,117) (108,142) Tangible common stockholders' equity, excluding accumulated other comprehensive loss $ 913,826 $ 886,790 $ 746,360 Average tangible common stockholders' equity: Average total stockholders' equity $ 998,806 $ 935,197 $ 784,289 Less: Average goodwill and other intangibles 202,773 204,191 158,181 Average tangible common stockholders' equity $ 796,033 $ 731,006 $ 626,108 Average tangible assets: Average total assets $ 9,030,941 $ 8,787,636 $ 7,345,151 Less: Average goodwill and other intangibles 202,773 204,191 158,181 Average tangible assets $ 8,828,168 $ 8,583,445 $ 7,186,970 Tangible net income available to common stockholders: Net income available to common stockholders $ 30,440 $ 29,604 $ 23,945 Add: After-tax intangible asset amortization 986 1,138 1,066 Tangible net income available to common stockholders $ 31,426 $ 30,742 $ 25,011 Adjusted tangible net income available to common stockholders: Tangible net income available to common stockholders $ 31,426 $ 30,742 $ 25,011 Impairment charges on assets held for sale and ROU assets 194 1,981 20 Merger-related expenses — 1,035 489 Tax benefit on significant items (52) (793) (56) Adjusted tangible net income available to common stockholders $ 31,568 $ 32,965 $ 25,464 Non-GAAP Reconciliation (continued) 22
As of or For the Three Months Ended (dollars in thousands, except share and per share data, ratios annualized, where applicable) March 31, 2024 December 31, 2023 March 31, 2023 Pre-tax pre-provision return on average assets: Pre-tax pre-provision net income $ 47,205 $ 47,204 $ 42,063 Average total assets 9,030,941 8,787,636 7,345,151 Pre-tax pre-provision return on average assets 2.10% 2.13% 2.32% Adjusted pre-tax pre-provision return on average assets: Adjusted pre-tax pre-provision net income $ 47,399 $ 50,220 $ 42,572 Average total assets 9,030,941 8,787,636 7,345,151 Adjusted pre-tax pre-provision return on average assets 2.11% 2.27% 2.35% Net interest margin, fully taxable equivalent Net interest income, fully taxable equivalent $ 85,774 $ 86,525 $ 75,926 Total average interest-earning assets 8,603,582 8,387,877 7,009,144 Net interest margin, fully taxable equivalent 4.01% 4.09% 4.39% Non-interest income to total revenues: Non-interest income $ 15,473 $ 14,503 $ 15,145 Total revenues 101,014 100,788 90,863 Non-interest income to total revenues 15.32% 14.39% 16.67% Adjusted non-interest expense to average assets: Adjusted non-interest expense $ 53,615 $ 50,568 $ 48,291 Average total assets 9,030,941 8,787,636 7,345,151 Adjusted non-interest expense to average assets 2.39% 2.28% 2.67% Adjusted efficiency ratio: Adjusted non-interest expense excluding amortization of intangible assets $ 52,270 $ 49,018 $ 46,836 Total revenues 101,014 100,788 90,863 Adjusted efficiency ratio 51.75% 48.64% 51.54% Adjusted return on average assets: Adjusted net income $ 30,582 $ 31,827 $ 24,398 Average total assets 9,030,941 8,787,636 7,345,151 Adjusted return on average assets 1.36% 1.44% 1.35% Adjusted return on average stockholders' equity: Adjusted net income $ 30,582 $ 31,827 $ 24,398 Average stockholders' equity 998,806 935,197 784,289 Adjusted return on average stockholders' equity 12.31% 13.50% 12.62% Non-GAAP Reconciliation (continued) 23
As of or For the Three Months Ended March 31, 2024 December 31, 2023 March 31, 2023 Tangible common equity to tangible assets: Tangible common equity $ 806,916 $ 786,673 $ 638,218 Tangible assets 9,208,370 8,678,489 7,372,914 Tangible common equity to tangible assets 8.76% 9.06% 8.66% 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 $ 913,826 $ 886,790 $ 746,360 Tangible assets, excluding accumulated other comprehensive loss 9,315,280 8,778,606 7,481,056 Tangible common stockholders' equity, excluding accumulated other comprehensive loss to tangible assets, excluding accumulated other comprehensive loss 9.81% 10.10% 9.98% Return on average tangible common stockholders' equity: Tangible net income available to common stockholders $ 31,426 $ 30,742 $ 25,011 Average tangible common stockholders' equity 796,033 731,006 626,108 Return on average tangible common stockholders' equity 15.88% 16.68% 16.20% Adjusted return on average tangible common stockholders' equity: Adjusted tangible net income available to common stockholders $ 31,568 $ 32,965 $ 25,464 Average tangible common stockholders' equity 796,033 731,006 626,108 Adjusted return on average tangible common stockholders' equity 15.95% 17.89% 16.49% Tangible book value per share: Tangible common equity $ 806,916 $ 786,673 $ 638,218 Common shares outstanding 44,108,387 43,764,056 37,713,427 Tangible book value per share $ 18.29 $ 17.98 $ 16.92 Accumulated other comprehensive loss to tangible common equity: Accumulated other comprehensive loss $ 106,910 $ 100,117 $ 108,142 Tangible common equity 806,916 786,673 638,218 Accumulated other comprehensive loss to tangible common equity 13.25% 12.73% 16.94% Non-GAAP Reconciliation (continued) 24
