10-Q

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-Q

☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended September 30, 2021

OR

☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from ______to ______

Commission File Number 001-38139

 

Byline Bancorp, Inc.

(Exact Name of Registrant as Specified in Its Charter)

Delaware	36-3012593
(State or Other Jurisdiction of Incorporation or Organization)	(IRS Employer Identification Number)

180 North LaSalle Street, Suite 300

Chicago, Illinois 60601

(Address of Principal Executive Offices)

(773) 244-7000

(Registrant’s telephone number, including area code)

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes ☒No ☐

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes ☒ No ☐

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer”, “accelerated filer”, “smaller reporting company”, and “emerging growth company” in Rule 12b-2 of the Securities Exchange Act of 1934.

Large accelerated filer	☐	Accelerated filer	☒
Non-accelerated filer	☐	Smaller reporting company	☐
		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. ☐

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes ☐No ☒

Securities registered pursuant to Section 12(b) of the Act:

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

Indicate the number of shares outstanding of each of the issuer’s classes of common stock, as of the latest practicable date:

Common Stock, $0.01 par value, 37,711,380 shares outstanding as of November 2, 2021

BYLINE BANCORP, INC.

FORM 10-Q

September 30, 2021

INDEX

		Page
PART I.	FINANCIAL INFORMATION	3
Item 1.	Financial Statements. The Unaudited Interim Condensed Consolidated Financial Statements of Byline Bancorp, Inc. filed as part of the report:	3
	Notes to Unaudited Interim Condensed Consolidated Financial Statements	10
Item 2.	Management’s Discussion and Analysis of Financial Condition and Results of Operations	43
Item 3.	Quantitative and Qualitative Disclosures about Market Risk	78
Item 4.	Controls and Procedures	79
PART II.	OTHER INFORMATION	80
Item 1.	Legal Proceedings	80
Item 1A.	Risk Factors	80
Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds	80
Item 3.	Defaults Upon Senior Securities	80
Item 4.	Mine Safety Disclosures	80
Item 5.	Other Information	80
Item 6.	Exhibits	81

2

PART I – FINANCIAL INFORMATION

Item 1. Financial Statements

BYLINE BANCORP, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION

(UNAUDITED)

(dollars in thousands, except share data)	September 30, 2021			December 31, 2020
ASSETS
Cash and due from banks	$	46,900		$	41,432
Interest bearing deposits with other banks		95,978			41,988
Cash and cash equivalents		142,878			83,420
Equity and other securities, at fair value		10,299			8,764
Securities available-for-sale, at fair value		1,427,605			1,447,230
Securities held-to-maturity, at amortized cost (fair value at September 30, 2021—$4,033, December 31, 2020 —$4,573)		3,887			4,395
Restricted stock, at cost		15,927			10,507
Loans held for sale		48,372			7,924
Loans and leases:
Loans and leases		4,609,228			4,340,535
Allowance for loan and lease losses		(60,598	)		(66,347	)
Net loans and leases		4,548,630			4,274,188
Servicing assets, at fair value		23,597			22,042
Premises and equipment, net		76,995			86,728
Other real estate owned, net		3,033			6,350
Goodwill and other intangible assets, net		167,296			172,631
Bank-owned life insurance		60,992			10,009
Deferred tax assets, net		45,165			40,181
Accrued interest receivable and other assets		129,775			216,283
Total assets	$	6,704,451		$	6,390,652
LIABILITIES AND STOCKHOLDERS’ EQUITY
LIABILITIES
Non-interest-bearing demand deposits	$	2,117,749		$	1,762,676
Interest-bearing deposits		3,040,529			2,989,355
Total deposits		5,158,278			4,752,031
Other borrowings		539,119			647,901
Subordinated notes, net		73,473			73,342
Junior subordinated debentures issued to capital trusts, net		36,796			36,451
Accrued interest payable and other liabilities		72,367			75,463
Total liabilities		5,880,033			5,585,188
STOCKHOLDERS’ EQUITY
Preferred stock		10,438			10,438
Common stock		386			384
Additional paid-in capital		592,192			587,165
Retained earnings		258,077			191,098
Treasury stock, at cost		(31,161	)		(1,668	)
Accumulated other comprehensive income (loss), net of tax		(5,514	)		18,047
Total stockholders’ equity		824,418			805,464
Total liabilities and stockholders’ equity	$	6,704,451		$	6,390,652

	September 30, 2021				December 31, 2020
	Preferred Shares		Common Shares		Preferred Shares		Common Shares
Par value	$	0.01	$	0.01	$	0.01	$	0.01
Shares authorized		50,000		150,000,000		50,000		150,000,000
Shares issued		10,438		39,170,541		10,438		38,736,540
Shares outstanding		10,438		37,690,087		10,438		38,618,054
Treasury shares		—		1,480,454		—		118,486

See accompanying Notes to Unaudited Interim Condensed Consolidated Financial Statements.

3

BYLINE BANCORP, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

(UNAUDITED)

	Three Months Ended					Nine Months Ended
	September 30,					September 30,
(dollars in thousands, except share and per share data)	2021			2020		2021			2020
INTEREST AND DIVIDEND INCOME
Interest and fees on loans and leases	$	56,291		$	51,036	$	164,423		$	155,347
Interest on securities		5,534			7,070		17,982			22,616
Other interest and dividend income		947			128		1,837			1,342
Total interest and dividend income		62,772			58,234		184,242			179,305
INTEREST EXPENSE
Deposits		986			2,760		3,465			14,810
Other borrowings		349			465		1,333			2,838
Subordinated notes and debentures		1,592			1,485		4,785			2,699
Total interest expense		2,927			4,710		9,583			20,347
Net interest income		59,845			53,524		174,659			158,958
PROVISION FOR LOAN AND LEASE LOSSES		352			15,740		2,750			45,713
Net interest income after provision for    loan and lease losses		59,493			37,784		171,909			113,245
NON-INTEREST INCOME
Fees and service charges on deposits		1,867			1,603		5,299			4,731
Loan servicing revenue		3,344			2,936		9,301			8,674
Loan servicing asset revaluation		(2,650	)		1,122		(4,148	)		(2,653	)
ATM and interchange fees		1,201			1,028		3,257			3,089
Net realized gains on securities available-for-sale		130			1,037		1,456			2,412
Change in fair value of equity securities, net		(275	)		154		36			301
Net gains on sales of loans		12,761			12,671		33,350			23,900
Wealth management and trust income		815			693		2,305			1,970
Other non-interest income		1,302			990		4,383			1,946
Total non-interest income		18,495			22,234		55,239			44,370
NON-INTEREST EXPENSE
Salaries and employee benefits		25,978			23,126		72,372			67,197
Occupancy and equipment expense, net		4,982			5,220		15,617			16,103
Loan and lease related expenses		1,175			2,053		3,629			4,631
Legal, audit and other professional fees		2,710			2,390		7,822			6,802
Data processing		3,108			2,661		8,710			8,152
Net loss recognized on other real estate owned and other    related expenses		42			349		1,052			1,324
Other intangible assets amortization expense		1,738			1,947		5,335			5,732
Other non-interest expense		4,447			3,941		11,466			12,460
Total non-interest expense		44,180			41,687		126,003			122,401
INCOME BEFORE PROVISION FOR INCOME TAXES		33,808			18,331		101,145			35,214
PROVISION FOR INCOME TAXES		8,502			5,260		25,549			10,038
NET INCOME		25,306			13,071		75,596			25,176
Dividends on preferred shares		196			196		587			587
INCOME AVAILABLE TO COMMON STOCKHOLDERS	$	25,110		$	12,875	$	75,009		$	24,589
EARNINGS PER COMMON SHARE
Basic	$	0.68		$	0.34	$	1.99		$	0.65
Diluted	$	0.66		$	0.34	$	1.95		$	0.64

See accompanying Notes to Unaudited Interim Condensed Consolidated Financial Statements.

4

BYLINE BANCORP, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS)

(UNAUDITED)

	Three Months Ended						Nine Months Ended
	September 30,						September 30,
(dollars in thousands)	2021			2020			2021			2020
Net income	$	25,306		$	13,071		$	75,596		$	25,176
Securities available-for-sale
Unrealized holding gains (losses) arising during the period		(8,439	)		33			(32,876	)		30,100
Reclassification adjustments for net gains included in net income		(130	)		(1,037	)		(1,456	)		(2,412	)
Tax effect		2,387			280			9,560			(7,710	)
Net of tax		(6,182	)		(724	)		(24,772	)		19,978
Cash flow hedges
Unrealized holding gains arising during the period		651			—			1,606			—
Reclassification adjustments for net losses included in net income		29			22			71			64
Tax effect		(189	)		(7	)		(466	)		(18	)
Net of tax		491			15			1,211			46
Total other comprehensive income (loss)		(5,691	)		(709	)		(23,561	)		20,024
Comprehensive income	$	19,615		$	12,362		$	52,035		$	45,200

See accompanying Notes to Unaudited Interim Condensed Consolidated Financial Statements.

5

BYLINE BANCORP, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS’ EQUITY

(UNAUDITED)

										Additional									Accumulated Other			Total
(dollars in thousands,	Preferred Stock				Common Stock					Paid-In			Retained			Treasury			Comprehensive			Stockholders’
except share data)	Shares		Amount		Shares			Amount		Capital			Earnings			Stock			Income (Loss)			Equity
Balance, January 1, 2020		10,438	$	10,438		38,256,500		$	379	$	580,965		$	159,033		$	—		$	(700	)	$	750,115
Net income		—		—		—			—		—			2,966			—			—			2,966
Other comprehensive income,    net of tax		—		—		—			—		—			—			—			11,048			11,048
Issuance of common stock    upon exercise of stock options		—		—		55,402			1		676			—			—			—			677
Restricted stock activity		—		—		174,036			—		—			—			—			—			—
Issuance of common stock in    connection with employee    stock purchase plan		—		—		15,569			—		268			—			—			—			268
Cash dividends declared on    preferred stock		—		—		—			—		—			(196	)		—			—			(196	)
Cash dividends declared on    common stock ($0.03 per    share)		—		—		—			—		—			(1,151	)		—			—			(1,151	)
Repurchase of common stock		—		—		(118,486	)		—		—			—			(1,668	)		—			(1,668	)
Share-based compensation    expense		—		—		—			—		608			—			—			—			608
Balance, March 31, 2020		10,438	$	10,438		38,383,021		$	380	$	582,517		$	160,652		$	(1,668	)	$	10,348		$	762,667
Net income		—		—		—			—		—			9,139			—			—			9,139
Other comprehensive income,    net of tax		—		—		—			—		—			—			—			9,685			9,685
Issuance of common stock    upon exercise of stock options		—		—		5,196			—		56			—			—			—			56
Restricted stock activity		—		—		—			1		(1	)		—			—			—			—
Cash dividends declared on    preferred stock		—		—		—			—		—			(195	)		—			—			(195	)
Cash dividends declared on    common stock ($0.03 per    share)		—		—		—			—		—			(1,152	)		—			—			(1,152	)
Share-based compensation    expense		—		—		—			—		735			—			—			—			735
Balance, June 30, 2020		10,438	$	10,438		38,388,217		$	381	$	583,307		$	168,444		$	(1,668	)	$	20,033		$	780,935
Net income		—		—		—			—		—			13,071			—			—			13,071
Other comprehensive loss,    net of tax		—		—		—			—		—			—			—			(709	)		(709	)
Issuance of common stock    upon exercise of stock options		—		—		165,375			1		1,814			—			—			—			1,815
Restricted stock activity		—		—		(5,886	)		—		—			—			—			—			—
Issuance of common stock in    connection with employee    stock purchase plan		—		—		21,210			1		268			—			—			—			269
Cash dividends declared on    preferred stock		—		—		—			—		—			(196	)		—			—			(196	)
Cash dividends declared on    common stock ($0.03 per    share)		—		—		—			—		—			(1,157	)		—			—			(1,157	)
Share-based compensation    expense		—		—		—			—		668			—			—			—			668
Balance, September 30, 2020		10,438	$	10,438		38,568,916		$	383	$	586,057		$	180,162		$	(1,668	)	$	19,324		$	794,696
Net income		—		—		—			—		—			12,291			—			—			12,291
Other comprehensive loss,    net of tax		—		—		—			—		—			—			—			(1,277	)		(1,277	)
Issuance of common stock    upon exercise of stock options		—		—		49,138			1		540			—			—			—			541
Cash dividends declared on    preferred stock		—		—		—			—		—			(196	)		—			—			(196	)
Cash dividends declared on    common stock ($0.03 per    share)		—		—		—			—		—			(1,159	)		—			—			(1,159	)
Share-based compensation    expense		—		—		—			—		568			—			—			—			568
Balance, December 31, 2020		10,438	$	10,438		38,618,054		$	384	$	587,165		$	191,098		$	(1,668	)	$	18,047		$	805,464

See accompanying Notes to Unaudited Interim Condensed Consolidated Financial Statements.

6

BYLINE BANCORP, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS’ EQUITY

(UNAUDITED)

										Additional									Accumulated Other			Total
(dollars in thousands,	Preferred Stock				Common Stock					Paid-In			Retained			Treasury			Comprehensive			Stockholders’
except share data)	Shares		Amount		Shares			Amount		Capital			Earnings			Stock			Income (Loss)			Equity
Balance, January 1, 2021		10,438	$	10,438		38,618,054		$	384	$	587,165		$	191,098		$	(1,668	)	$	18,047		$	805,464
Net income		—		—		—			—		—			21,798			—			—			21,798
Other comprehensive loss,    net of tax		—		—		—			—		—			—			—			(26,394	)		(26,394	)
Issuance of common stock    upon exercise of stock    options		—		—		55,908			1		750			—			—			—			751
Restricted stock activity, net		—		—		274,739			—		—			—			(244	)		—			(244	)
Issuance of common stock in    connection with employee    stock purchase plan		—		—		25,894			—		515			—			—			—			515
Cash dividends declared on    preferred stock		—		—		—			—		—			(196	)		—			—			(196	)
Cash dividends declared on    common stock ($0.06 per    share)		—		—		—			—		—			(2,315	)		—			—			(2,315	)
Repurchase of common stock		—		—		(332,744	)		—		—			—			(6,363	)		—			(6,363	)
Share-based compensation    expense		—		—		—			—		779			—			—			—			779
Balance, March 31, 2021		10,438	$	10,438		38,641,851		$	385	$	589,209		$	210,385		$	(8,275	)	$	(8,347	)	$	793,795
Net income		—		—		—			—		—			28,492			—			—			28,492
Other comprehensive income,    net of tax		—		—		—			—		—			—			—			8,524			8,524
Issuance of common stock    upon exercise of stock    options		—		—		11,031			—		135			—			—			—			135
Restricted stock activity, net		—		—		(19,166	)		—		—			—			(344	)		—			(344	)
Cash dividends declared on    preferred stock		—		—		—			—		—			(195	)		—			—			(195	)
Cash dividends declared on    common stock ($0.06 per    share)		—		—		—			—		—			(2,319	)		—			—			(2,319	)
Repurchase of common stock		—		—		(538,744	)		—		—			—			(12,093	)		—			(12,093	)
Share-based compensation    expense		—		—		—			—		1,078			—			—			—			1,078
Balance, June 30, 2021		10,438	$	10,438		38,094,972		$	385	$	590,422		$	236,363		$	(20,712	)	$	177		$	817,073
Net income		—		—		—			—		—			25,306			—			—			25,306
Other comprehensive loss,    net of tax		—		—		—			—		—			—			—			(5,691	)		(5,691	)
Issuance of common stock    upon exercise of stock    options		—		—		25,866			—		283			—			—			—			283
Restricted stock activity, net		—		—		12,879			1		(1	)		—			(38	)		—			(38	)
Issuance of common stock in    connection with employee    stock purchase plan		—		—		16,590			—		408			—			—			—			408
Cash dividends declared on    preferred stock		—		—		—			—		—			(196	)		—			—			(196	)
Cash dividends declared on    common stock ($0.09 per    share)		—		—		—			—		—			(3,396	)		—			—			(3,396	)
Repurchase of common stock		—		—		(460,220	)		—		—			—			(10,411	)		—			(10,411	)
Share-based compensation    expense		—		—		—			—		1,080			—			—			—			1,080
Balance, September 30, 2021		10,438	$	10,438		37,690,087		$	386	$	592,192		$	258,077		$	(31,161	)	$	(5,514	)	$	824,418

See accompanying Notes to Unaudited Interim Condensed Consolidated Financial Statements.

7

BYLINE BANCORP, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(UNAUDITED)

	Nine Months Ended
	September 30,
(dollars in thousands)	2021			2020
CASH FLOWS FROM OPERATING ACTIVITIES
Net income	$	75,596		$	25,176
Adjustments to reconcile net income to net cash from operating activities:
Provision for loan and lease losses		2,750			45,713
Impairment loss on assets held for sale		3,981			747
Depreciation and amortization of premises and equipment		4,603			4,849
Net amortization of securities		6,649			5,445
Net change in fair value of equity securities, net		(36	)		(301	)
Net realized gains on securities available-for-sale		(1,456	)		(2,412	)
Net losses (gains) on sales and valuation adjustments of premises    and equipment		(497	)		156
Net gains on sales of loans		(33,350	)		(23,900	)
Originations of U.S. government guaranteed loans		(323,010	)		(301,177	)
Proceeds from U.S. government guaranteed loans sold		312,733			232,251
Accretion of premiums and discounts on acquired loans, net		(5,001	)		(10,754	)
Net change in servicing assets		(1,555	)		(1,796	)
Net losses on sales and valuation adjustments of other real estate    owned		755			999
Net amortization of other acquisition accounting adjustments		5,261			5,676
Amortization of subordinated debt issuance cost		131			41
Accretion of junior subordinated debentures discount		345			385
Share-based compensation expense		2,937			2,011
Deferred tax provision, net of valuation		4,108			2,643
Increase in cash surrender value of bank owned life insurance		(983	)		(202	)
Loss on redemption of junior subordinated debentures		—			112
Changes in assets and liabilities:
Accrued interest receivable and other assets		9,706			(3,161	)
Accrued interest payable and other liabilities		(17,565	)		20,552
Net cash provided by operating activities		46,102			3,053
CASH FLOWS FROM INVESTING ACTIVITIES
Purchases of securities available-for-sale		(514,506	)		(742,303	)
Proceeds from maturities and calls of securities available-for-sale		37,108			173,581
Proceeds from paydowns of securities available-for-sale		269,286			189,913
Proceeds from sales of securities available-for-sale		280,962			80,509
Proceeds from maturities and calls of securities held-to-maturity		500			—
Redemption (purchases) of Federal Home Loan Bank stock, net		(5,420	)		12,475
Net change in loans and leases		(272,913	)		(596,536	)
Purchases of premises and equipment		(1,762	)		(4,148	)
Proceeds from sales of premises and equipment		296			32
Proceeds from sales of assets held for sale		4,919			—
Proceeds from sales of other real estate owned		2,998			874
Investment in bank owned life insurance		(50,000	)		—
Proceeds from bank owned life insurance death benefit		—			69
Net cash used in investing activities		(248,532	)		(885,534	)

See accompanying Notes to Unaudited Interim Condensed Consolidated Financial Statements.

8

BYLINE BANCORP, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Continued)

(UNAUDITED)

	Nine Months Ended
	September 30,
(dollars in thousands)	2021			2020
CASH FLOWS FROM FINANCING ACTIVITIES
Net increase in deposits	$	406,321		$	662,724
Proceeds from short-term borrowings		11,953,000			6,407,800
Repayments of short-term borrowings		(11,832,000	)		(6,682,800	)
Proceeds from Paycheck Protection Program Liquidity Facility (PPPLF)    advances		196,679			449,889
Repayments of PPPLF advances		(412,182	)		(279	)
Proceeds from subordinated notes, net		—			73,258
Repayments of junior subordinated debentures		—			(1,500	)
Net decrease in securities sold under agreements to repurchase		(14,279	)		(3,688	)
Dividends paid on preferred stock		(587	)		(587	)
Dividends paid on common stock		(7,928	)		(3,412	)
Proceeds from issuance of common stock		1,731			3,085
Repurchases of common stock		(28,867	)		(1,668	)
Net cash provided by financing activities		261,888			902,822
NET INCREASE IN CASH AND CASH EQUIVALENTS		59,458			20,341
CASH AND CASH EQUIVALENTS, beginning of period		83,420			80,737
CASH AND CASH EQUIVALENTS, end of period	$	142,878		$	101,078
SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION:
Cash paid during the period for interest	$	8,901		$	21,130
Cash paid during the period for taxes	$	25,525		$	7,697
SUPPLEMENTAL DISCLOSURES OF NON-CASH INVESTING AND    FINANCING ACTIVITIES:
Common dividend declared, not paid	$	102		$	1,196

See accompanying Notes to Unaudited Interim Condensed Consolidated Financial Statements.

9

BYLINE BANCORP, INC. AND SUBSIDIARIES

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(Table dollars in thousands, except share and per share data) (Unaudited)

Note 1—Basis of Presentation

These unaudited interim condensed consolidated financial statements include the accounts of Byline Bancorp, Inc., a Delaware corporation (the “Company,” “Byline,” “we,” “us,” “our”), a bank holding company whose principal activity is the ownership and management of its Illinois state chartered subsidiary bank, Byline Bank (the “Bank”), based in Chicago, Illinois.

These unaudited interim condensed consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”) for interim financial information and in accordance with the instructions to Form 10-Q and Article 10 of Regulation S-X as promulgated by the Securities and Exchange Commission (“SEC”). In preparing these financial statements, the Company has evaluated events and transactions subsequent to September 30, 2021 for potential recognition or disclosure. In the opinion of management, all adjustments (consisting of normal recurring accruals) considered necessary for a fair presentation of the financial position and results of operations for the periods presented have been included. Certain information in footnote disclosures normally included in financial statements prepared in accordance with GAAP has been condensed or omitted pursuant to the rules and regulations of the SEC and the accounting standards for interim financial statements. These financial statements should be read in conjunction with the consolidated financial statements and notes thereto included in the Company’s Consolidated Financial Statements for the years ended December 31, 2020, 2019, and 2018.

In accordance with the Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) Topic 855, “Subsequent Events,” the Company’s management has evaluated subsequent events for potential recognition or disclosure through the date of the issuance of these condensed consolidated financial statements.

The Company has one reportable segment. The Company’s chief operating decision maker evaluates the operations of the Company using consolidated information for purposes of allocating resources and assessing performance. Therefore, segments disclosures are not required.

No subsequent events were identified that would have required a change to the condensed consolidated financial statements or disclosure in the notes to the condensed consolidated financial statements.

Certain prior period amounts have been reclassified to conform to current period presentation. These reclassifications did not result in any changes to previously reported net income or stockholders’ equity. 

Note 2—Accounting Pronouncements Recently Adopted or Issued

The following reflect recent accounting pronouncements that have been adopted or are pending adoption by the Company. As the Company qualifies as an emerging growth company and has elected the extended transition period for complying with new or revised accounting pronouncements, it is not subject to new or revised accounting standards applicable to public companies during the extended transition period. The accounting pronouncements pending adoption below reflect effective dates for the Company as an emerging growth company with the extended transition period.

10

BYLINE BANCORP, INC. AND SUBSIDIARIES

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(Table dollars in thousands, except share and per share data) (Unaudited)

Adopted Accounting Pronouncement

Leases (Topic 842)— On January 1, 2021, the Company adopted ASU No. 2016-02 Leases and subsequent amendments thereto, which requires the Company to recognize most leases on the balance sheet. We adopted the standard under a modified retrospective approach as of the date of adoption and elected to apply several of the available practical expedients, including:

•Carry over of historical lease determination and lease classification conclusions

•Carry over of historical initial direct cost balances for existing leases

•Option not to recognize right-of-use assets and lease liabilities that arise from short-term leases (i.e. lease terms of twelve months or less)

•Use of hindsight in determining the lease term and right-of-use assets

•Accounting for lease and non-lease components in contracts in which the Company is a lessee as a single lease component

Adoption of the leasing standard resulted in the recognition of operating right-of-use assets of $10.5 million and operating lease liabilities of $11.7 million as of January 1, 2021. These amounts were determined based on the present value of remaining minimum lease payments, discounted using the Company’s incremental borrowing rate as of the date of adoption. This guidance also applies to the Company’s investment in direct financing leases, which are included in loans, but did not have a material impact. There was no material impact to the timing of expense or income recognition in the Company’s Consolidated Statements of Operations. Prior periods were not restated and continue to be presented under legacy GAAP. Refer to Note 8—Leases for further details.

Issued Accounting Pronouncements Pending Adoption

Financial Instruments—Credit Losses (Topic 326)—In June 2016, FASB issued ASU No. 2016‑13, Measurement of Credit Losses on Financial Instruments. Current GAAP requires an “incurred loss” methodology for recognizing credit losses that delays recognition until it is probable a loss has been incurred. The main objective of this ASU is to provide financial statement users with more decision-useful information about the expected credit losses on financial instruments and other commitments to extend credit held by a reporting entity at each reporting date. The amendments in this ASU replace the incurred loss impairment methodology in current GAAP with a methodology that reflects expected credit losses and requires consideration of a broader range of reasonable and supportable information to inform credit loss estimates. The amendments in this ASU require a financial asset (or group of financial assets) measured at amortized cost basis to be presented at the net amount expected to be collected. The allowance for credit losses is a valuation account that is deducted from the amortized cost basis of the financial asset(s) to present the net carrying value at the amount expected to be collected on the financial asset. The measurement of expected credit losses will be based on relevant information about past events, including historical experience, current conditions, and reasonable and supportable forecasts that affect the collectability of the reported amount. The amendments in this ASU broaden the information that an entity must consider in developing its expected credit loss estimate for assets measured either collectively or individually. The use of forecasted information incorporates more timely information in the estimate of expected credit loss, which will be more useful to users of the financial statements. In November 2019, FASB issued ASU No. 2019-10, Effective Dates, which delays the effective date of the ASU for entities not classified as a public business entity. Assuming the Company remains an emerging growth company, the Company anticipates adopting the standard on December 31, 2022. The Company is in the process of implementation and determining the impact that this ASU will have on the Company’s Consolidated Financial Statements.

Income Taxes (Topic 740)—In December 2019, FASB issued ASU No. 2019-12, Simplifying the Accounting for Income Taxes. The amendments in the ASU simplify the accounting for income taxes by removing the following: the exception to the incremental approach for intraperiod tax allocation when there is a loss from continuing operations and income or a gain from other items; the exception to the requirement to or not to recognize a deferred tax liability for a foreign entity when it becomes an equity method investment or it becomes a subsidiary, respectively; and the exception to the general methodology for calculating income taxes in an interim period when a year-to-date loss exceeds the anticipated loss for the year. The amendments in the ASU changes current authoritative guidance by requiring the recognition of franchise tax that is partially based on income as an income-based tax and account for any incremental amount incurred as a non-income-based tax; requiring an evaluation when a step up in the tax basis of goodwill should be considered part the of business combination; specifying that it is not required to allocate the consolidated amount of current and deferred tax expense to a legal entity that is

11

BYLINE BANCORP, INC. AND SUBSIDIARIES

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(Table dollars in thousands, except share and per share data) (Unaudited)

not subject to tax in its separate financial statements; and requiring that an entity reflect the effect of an enacted change in tax laws or rates in the annual effective tax rate computation in the interim period that includes the enactment date. The amendments are effective for annual periods beginning after December 15, 2021, and interim periods within annual periods beginning after December 15, 2022. Early adoption is permitted. Assuming the Company remains an emerging growth company, the new authoritative guidance will be effective for reporting periods after January 1, 2022. The Company is currently evaluating the provisions of ASU No. 2019-12 to determine the potential impact the new standard will have on the Company’s Consolidated Financial Statements.

Reference Rate Reform (Topic 848)—In March 2020, FASB issued ASU No. 2020-04, Facilitation of the Effects of Reference Rate Reform on Financial Reporting and in January 2021, the FASB issued ASU No. 2021-01, Reference Rate Reform. The amendments in the ASU provide optional guidance for a limited period of time to ease the potential burden in accounting for (or recognizing the effects of) reference rate reform on financial reporting. The amendments in the ASU provide optional expedients and exceptions for applying generally accepted accounting principles to contract modifications and hedging relationships, subject to meeting certain criteria, that reference LIBOR or another reference rate expected to be discontinued. The ASU is intended to help stakeholders during the global market-wide reference rate transition period. The amendments in the ASU will be in effect for all entities as of March 12, 2020 through December 31, 2022. The Company is currently evaluating the impact of reference rate reform to determine the potential impact the new standard will have on the Company’s Consolidated Financial Statements.

Note 3—Securities

The following tables summarize the amortized cost and fair values of securities available-for-sale and securities held-to-maturity as of the dates shown and the corresponding amounts of gross unrealized gains and losses:

September 30, 2021	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses			Fair Value
Available-for-sale
U.S. Treasury Notes	$	8,487	$	91	$	—		$	8,578
U.S. Government agencies		124,244		885		(1,865	)		123,264
Obligations of states, municipalities, and    political subdivisions		101,499		3,725		(164	)		105,060
Residential mortgage-backed securities
Agency		794,856		3,303		(12,986	)		785,173
Non-agency		64,645		86		(722	)		64,009
Commercial mortgage-backed securities
Agency		237,376		3,179		(3,146	)		237,409
Corporate securities		64,842		2,002		(17	)		66,827
Asset-backed securities		37,203		83		(1	)		37,285
Total	$	1,433,152	$	13,354	$	(18,901	)	$	1,427,605

September 30, 2021	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Fair Value
Held-to-maturity
Obligations of states, municipalities, and    political subdivisions	$	3,887	$	146	$	—	$	4,033
Total	$	3,887	$	146	$	—	$	4,033

12

BYLINE BANCORP, INC. AND SUBSIDIARIES

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(Table dollars in thousands, except share and per share data) (Unaudited)

December 31, 2020	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses			Fair Value
Available-for-sale
U.S. Treasury Notes	$	23,468	$	344	$	—		$	23,812
U.S. Government agencies		113,088		600		(137	)		113,551
Obligations of states, municipalities, and    political subdivisions		135,513		6,991		(85	)		142,419
Residential mortgage-backed securities
Agency		764,951		13,645		(205	)		778,391
Non-agency		32,654		332		(5	)		32,981
Commercial mortgage-backed securities
Agency		244,496		6,046		(390	)		250,152
Corporate securities		59,020		1,850		(102	)		60,768
Asset-backed securities		45,255		26		(125	)		45,156
Total	$	1,418,445	$	29,834	$	(1,049	)	$	1,447,230

December 31, 2020	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Fair Value
Held-to-maturity
Obligations of states, municipalities, and political    subdivisions	$	4,395	$	178	$	—	$	4,573
Total	$	4,395	$	178	$	—	$	4,573

The Company did not classify securities as trading during the nine months ended September 30, 2021 or during 2020.

Gross unrealized losses and fair values, aggregated by investment category and length of time that individual securities have been in a continuous unrealized loss position as of September 30, 2021 and December 31, 2020, are summarized as follows:

			Less than 12 Months					12 Months or Longer					Total
September 30, 2021	# of Securities		Fair Value		Unrealized Losses			Fair Value		Unrealized Losses			Fair Value		Unrealized Losses
Available-for-sale
U.S. Government agencies		10	$	74,687	$	(1,506	)	$	9,641	$	(359	)	$	84,328	$	(1,865	)
Obligations of states,    municipalities and political    subdivisions		7		8,097		(164	)		—		—			8,097		(164	)
Residential mortgage-backed    securities
Agency		51		620,325		(12,626	)		11,805		(360	)		632,130		(12,986	)
Non-agency		5		34,310		(722	)		—		—			34,310		(722	)
Commercial mortgage-backed    securities
Agency		21		75,001		(2,369	)		26,823		(777	)		101,824		(3,146	)
Corporate securities		2		5,041		(17	)		—		—			5,041		(17	)
Asset-backed securities		1		4,997		(1	)		—		—			4,997		(1	)
Total		97	$	822,458	$	(17,405	)	$	48,269	$	(1,496	)	$	870,727	$	(18,901	)

13

BYLINE BANCORP, INC. AND SUBSIDIARIES

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(Table dollars in thousands, except share and per share data) (Unaudited)

			Less than 12 Months					12 Months or Longer					Total
December 31, 2020	# of Securities		Fair Value		Unrealized Losses			Fair Value		Unrealized Losses			Fair Value		Unrealized Losses
Available-for-sale
U.S. Government agencies		5	$	30,639	$	(137	)	$	—	$	—		$	30,639	$	(137	)
Obligations of states,    municipalities and political    subdivisions		2		210		(85	)		—		—			210		(85	)
Residential mortgage-backed    securities
Agency		8		45,253		(198	)		472		(7	)		45,725		(205	)
Non-agency		2		3,963		(5	)		—		—			3,963		(5	)
Commercial mortgage-backed    securities
Agency		8		55,554		(390	)		—		—			55,554		(390	)
Corporate securities		6		10,916		(102	)		—		—			10,916		(102	)
Asset-backed securities		6		24,436		(99	)		4,952		(26	)		29,388		(125	)
Total		37	$	170,971	$	(1,016	)	$	5,424	$	(33	)	$	176,395	$	(1,049	)

Certain securities have fair values less than amortized cost and, therefore, contain unrealized losses. The Company evaluated the securities that had an unrealized loss for other than temporary impairment and determined all declines in value to be temporary. There were 97 securities available-for-sale with unrealized losses at September 30, 2021. There were no securities held-to-maturity with unrealized losses at September 30, 2021. The Company anticipates full recovery of amortized cost with respect to these securities by maturity, or sooner, in the event of a more favorable market interest rate environment. The Company does not intend to sell these securities and it is not more likely than not that the Company will be required to sell them before recovery of their amortized cost basis, which may be at maturity.

The proceeds from all sales of securities available-for-sale, and the associated gains and losses on sales and calls of securities, for the three and nine months ended September 30, 2021 and 2020 are listed below:

	For the Three Months Ended				For the Nine Months Ended
	September 30,				September 30,
	2021		2020		2021		2020
Proceeds	$	—	$	35,092	$	186,850	$	80,509
Gross gains		130		1,037		2,525		2,494
Gross losses		—		—		1,069		82

There were $130,000 and $1.5 million in net gains reclassified from accumulated other comprehensive income into earnings for the three and nine months ended September 30, 2021, respectively. There were $1.0 million and $2.4 million in net gains reclassified from accumulated other comprehensive income into earnings for the three and nine months ended September 30, 2020, respectively.

Securities posted as collateral were $361.0 million and $731.8 million at September 30, 2021 and December 31, 2020, respectively, of which carrying amounts of $361.0 million and $323.9 million were pledged at September 30, 2021 and December 31, 2020, respectively. At September 30, 2021 and December 31, 2020, of those pledged, the carrying amounts of securities pledged as collateral for public fund deposits were $311.3 million and $245.1 million, respectively, and for customer repurchase agreements of $38.7 million and $64.1 million, respectively. At September 30, 2021 and December 31, 2020, there were no securities pledged for advances from the Federal Home Loan Bank. Other securities were pledged for derivative positions, letters of credit and for purposes required or permitted by law. At September 30, 2021 and December 31, 2020, there were no holdings of securities of any one issuer, other than the U.S. Government and its agencies, in an amount greater than 10% of stockholders’ equity.

14

BYLINE BANCORP, INC. AND SUBSIDIARIES

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(Table dollars in thousands, except share and per share data) (Unaudited)

At September 30, 2021, the amortized cost and fair value of debt securities are shown by contractual maturity. Expected maturities may differ from contractual maturities if borrowers have the right to call or prepay obligations with or without call or prepayment penalties. Securities not due at a single maturity date are shown separately.

	Amortized Cost		Fair Value
Available-for-sale
Due in one year or less	$	23,201	$	23,402
Due from one to five years		26,476		27,466
Due from five to ten years		209,435		211,691
Due after ten years		77,163		78,455
Mortgage-backed securities		1,096,877		1,086,591
Total	$	1,433,152	$	1,427,605
Held-to-maturity
Due from one to five years		3,887		4,033
Total	$	3,887	$	4,033

Note 4—Loan and Lease Receivables

Outstanding loan and lease receivables as of the dates shown were categorized as follows:

	September 30,			December 31,
	2021			2020
Commercial real estate	$	1,615,875		$	1,416,731
Residential real estate		507,226			569,387
Construction, land development, and other land		340,428			231,602
Commercial and industrial		1,535,412			1,372,452
Paycheck Protection Program ("PPP")		275,619			527,044
Installment and other		1,396			1,942
Lease financing receivables		334,484			223,295
Total loans and leases		4,610,440			4,342,453
Net unamortized deferred fees and costs		(5,484	)		(5,764	)
Initial direct costs		4,272			3,846
Allowance for loan and lease losses		(60,598	)		(66,347	)
Net loans and leases	$	4,548,630		$	4,274,188

	September 30,			December 31,
	2021			2020
Lease financing receivables
Net minimum lease payments	$	337,512		$	234,472
Unguaranteed residual values		22,338			8,690
Unearned income		(25,366	)		(19,867	)
Total lease financing receivables		334,484			223,295
Initial direct costs		4,272			3,846
Lease financial receivables before allowance for    lease losses	$	338,756		$	227,141

15

BYLINE BANCORP, INC. AND SUBSIDIARIES

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(Table dollars in thousands, except share and per share data) (Unaudited)

Total loans and leases consist of originated loans and leases, acquired impaired loans and acquired non-impaired loans and leases. At September 30, 2021 and December 31, 2020, total loans and leases included the guaranteed amount of U.S. government guaranteed loans of $396.6 million and $635.0 million, respectively. At September 30, 2021 and December 31, 2020, the discount on the unguaranteed portion of U.S. government guaranteed loans was $27.9 million and $28.3 million, respectively, which are included in total loans and leases. At September 30, 2021 and December 31, 2020, installment and other loans included overdraft deposits of $477,000 and $496,000, respectively, which were reclassified as loans. At September 30, 2021 and December 31, 2020, loans and leases and loans held for sale pledged as security for borrowings were $2.0 billion and $2.3 billion, respectively.

The minimum annual lease payments for lease financing receivables as of September 30, 2021 are summarized as follows:

	Minimum Lease Payments
2021	$	27,875
2022		110,733
2023		85,005
2024		59,682
2025		39,328
Thereafter		14,889
Total	$	337,512

Originated loans and leases represent originations excluding loans initially acquired in a business combination. However, once an acquired non-impaired loan reaches its maturity date, and is re-underwritten and renewed, it is internally classified as an originated loan. Acquired impaired loans are loans acquired from a business combination with evidence of credit quality deterioration and are accounted for under ASC Topic 310-30. Acquired non-impaired loans and leases represent loans and leases acquired from a business combination without more than insignificant evidence of credit quality deterioration and are accounted for under ASC Topic 310-20. Acquired leases and revolving loans having evidence of credit quality deterioration do not qualify to be accounted for as acquired impaired loans and are accounted for under ASC Topic 310-20. The following tables summarize the balances for each respective loan and lease category as of September 30, 2021 and December 31, 2020:

September 30, 2021	Originated		Acquired Impaired		Acquired Non-Impaired		Total
Commercial real estate	$	1,298,454	$	84,821	$	235,103	$	1,618,378
Residential real estate		387,578		61,893		58,283		507,754
Construction, land development, and other land		336,460		1,746		206		338,412
Commercial and industrial		1,480,076		6,651		49,678		1,536,405
Paycheck Protection Program		268,081		—		—		268,081
Installment and other		998		169		275		1,442
Lease financing receivables		331,149		—		7,607		338,756
Total loans and leases	$	4,102,796	$	155,280	$	351,152	$	4,609,228

16

BYLINE BANCORP, INC. AND SUBSIDIARIES

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(Table dollars in thousands, except share and per share data) (Unaudited)

December 31, 2020	Originated		Acquired Impaired		Acquired Non-Impaired		Total
Commercial real estate	$	1,017,587	$	108,484	$	295,599	$	1,421,670
Residential real estate		414,220		78,840		79,211		572,271
Construction, land development, and other land		226,408		4,113		212		230,733
Commercial and industrial		1,276,527		10,178		82,195		1,368,900
Paycheck Protection Program		517,815		—		—		517,815
Installment and other		1,267		202		536		2,005
Lease financing receivables		214,636		—		12,505		227,141
Total loans and leases	$	3,668,460	$	201,817	$	470,258	$	4,340,535

Acquired impaired loans—The unpaid principal balance and carrying amount of all acquired impaired loans are summarized below. The balances do not include an allowance for loan and lease losses of $4.3 million and $6.5 million, at September 30, 2021 and December 31, 2020, respectively.

	September 30, 2021				December 31, 2020
	Unpaid Principal Balance		Carrying Value		Unpaid Principal Balance		Carrying Value
Commercial real estate	$	126,738	$	84,821	$	154,233	$	108,484
Residential real estate		108,560		61,893		126,086		78,840
Construction, land development, and other land		9,301		1,746		12,677		4,113
Commercial and industrial		12,115		6,651		15,925		10,178
Installment and other		866		169		917		202
Total acquired impaired loans	$	257,580	$	155,280	$	309,838	$	201,817

The following table summarizes the changes in accretable yield for acquired impaired loans for the three and nine months ended September 30, 2021 and 2020:

	Three Months Ended						Nine Months Ended
	September 30,						September 30,
	2021			2020			2021			2020
Beginning balance	$	24,474		$	31,868		$	27,696		$	40,009
Accretion to interest income		(3,080	)		(5,763	)		(9,896	)		(15,420	)
Reclassification from nonaccretable difference, net		1,217			5,727			4,811			7,243
Ending balance	$	22,611		$	31,832		$	22,611		$	31,832

17

BYLINE BANCORP, INC. AND SUBSIDIARIES

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(Table dollars in thousands, except share and per share data) (Unaudited)

Acquired non-impaired loans and leases— The unpaid principal balance and carrying value for acquired non-impaired loans and leases at September 30, 2021 and December 31, 2020 were as follows:

	September 30, 2021				December 31, 2020
	Unpaid Principal Balance		Carrying Value		Unpaid Principal Balance		Carrying Value
Commercial real estate	$	240,271	$	235,103	$	302,091	$	295,599
Residential real estate		58,858		58,283		80,104		79,211
Construction, land development, and other land		271		206		278		212
Commercial and industrial		51,468		49,678		84,608		82,195
Installment and other		286		275		553		536
Lease financing receivables		7,638		7,607		13,978		12,505
Total acquired non-impaired loans and leases	$	358,792	$	351,152	$	481,612	$	470,258

Note 5—Allowance for Loan and Lease Losses and Reserve for Unfunded Commitments

Loans and leases considered for inclusion in the allowance for loan and lease losses include acquired non-impaired loans and leases, those acquired impaired loans with credit deterioration after acquisition, and originated loans and leases. Although all acquired loans and leases are included in the following table, only those with credit deterioration subsequent to acquisition date are included in the allowance for loan and lease losses.

The following tables summarize the balance and activity within the allowance for loan and lease losses, the components of the allowance for loan and lease losses in terms of loans and leases individually and collectively evaluated for impairment, and corresponding loan and lease balances by type for the three and nine months ended September 30, 2021 and 2020 are as follows:

September 30, 2021	Commercial Real Estate			Residential Real Estate			Construction, Land Development, and Other Land			Commercial and Industrial			Paycheck Protection Program		Installment and Other			Lease Financing Receivables			Total
Allowance for loan and    lease losses
Three months ended
Beginning balance	$	19,541		$	1,364		$	619		$	38,284		$	—	$	9		$	1,902		$	61,719
Provision/(recapture)		1,108			(225	)		(61	)		(1,218	)		—		(2	)		750			352
Charge-offs		(564	)		(65	)		—			(1,456	)		—		—			(399	)		(2,484	)
Recoveries		287			2			—			380			—		—			342			1,011
Ending balance	$	20,372		$	1,076		$	558		$	35,990		$	—	$	7		$	2,595		$	60,598
Nine months ended
Beginning balance	$	19,584		$	2,400		$	1,352		$	41,183		$	—	$	15		$	1,813		$	66,347
Provision/(recapture)		2,891			(1,257	)		(468	)		226			—		(8	)		1,366			2,750
Charge-offs		(2,644	)		(76	)		(326	)		(6,172	)		—		—			(1,148	)		(10,366	)
Recoveries		541			9			—			753			—		—			564			1,867
Ending balance	$	20,372		$	1,076		$	558		$	35,990		$	—	$	7		$	2,595		$	60,598
Ending balance:
Individually evaluated for    impairment	$	8,420		$	—		$	—		$	16,142		$	—	$	—		$	—		$	24,562
Collectively evaluated for    impairment		9,314			723			550			18,572			—		7			2,595			31,761
Loans acquired with    deteriorated credit    quality		2,638			353			8			1,276			—		—			—			4,275
Total allowance for loan    and lease losses	$	20,372		$	1,076		$	558		$	35,990		$	—	$	7		$	2,595		$	60,598

18

BYLINE BANCORP, INC. AND SUBSIDIARIES

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(Table dollars in thousands, except share and per share data) (Unaudited)

September 30, 2021	Commercial Real Estate		Residential Real Estate		Construction, Land Development, and Other Land		Commercial and Industrial		Paycheck Protection Program		Installment and Other		Lease Financing Receivables		Total
Loans and leases ending balance:
Individually evaluated for    impairment	$	45,563	$	3,946	$	—	$	37,689	$	—	$	—	$	—	$	87,198
Collectively evaluated for    impairment		1,487,994		441,915		336,666		1,492,065		268,081		1,273		338,756		4,366,750
Loans acquired with    deteriorated    credit quality		84,821		61,893		1,746		6,651		—		169		—		155,280
Total loans and leases	$	1,618,378	$	507,754	$	338,412	$	1,536,405	$	268,081	$	1,442	$	338,756	$	4,609,228

September 30, 2020	Commercial Real Estate			Residential Real Estate			Construction, Land Development, and Other Land			Commercial and Industrial			Paycheck Protection Program		Installment and Other			Lease Financing Receivables			Total
Allowance for loan and lease losses
Three months ended
Beginning balance	$	14,110		$	3,741		$	1,491		$	30,108		$	—	$	36		$	1,814		$	51,300
Provision		6,421			291			1,029			7,603			—		1			395			15,740
Charge-offs		(1,566	)		(250	)		(701	)		(3,254	)		—		—			(374	)		(6,145	)
Recoveries		19			8			53			83			—		—			200			363
Ending balance	$	18,984		$	3,790		$	1,872		$	34,540		$	—	$	37		$	2,035		$	61,258
Nine months ended
Beginning balance	$	7,965		$	1,990		$	610		$	19,377		$	—	$	50		$	1,944		$	31,936
Provision/(recapture)		14,149			2,031			1,910			26,844			—		(13	)		792			45,713
Charge-offs		(3,206	)		(259	)		(701	)		(12,057	)		—		—			(1,392	)		(17,615	)
Recoveries		76			28			53			376			—		—			691			1,224
Ending balance	$	18,984		$	3,790		$	1,872		$	34,540		$	—	$	37		$	2,035		$	61,258
Ending balance:
Individually evaluated for    impairment	$	4,516		$	77		$	—		$	10,189		$	—	$	—		$	—		$	14,782
Collectively evaluated for    impairment		11,825			3,413			1,685			22,450			—		37			2,035			41,445
Loans acquired with    deteriorated   credit quality		2,643			300			187			1,901			—		—			—			5,031
Total allowance for loan and   lease losses	$	18,984		$	3,790		$	1,872		$	34,540		$	—	$	37		$	2,035		$	61,258

September 30, 2020	Commercial Real Estate		Residential Real Estate		Construction, Land Development, and Other Land		Commercial and Industrial		Paycheck Protection Program		Installment and Other		Lease Financing Receivables		Total
Loans and leases ending balance:
Individually evaluated for    impairment	$	39,001	$	1,636	$	—	$	37,253	$	—	$	—	$	—	$	77,890
Collectively evaluated for    impairment		1,191,740		547,563		234,230		1,281,067		622,191		2,929		200,089		4,079,809
Loans acquired with   deteriorated credit quality		117,114		84,197		4,804		10,489		—		214		—		216,818
Total loans and leases	$	1,347,855	$	633,396	$	239,034	$	1,328,809	$	622,191	$	3,143	$	200,089	$	4,374,517

The Company recaptured $1.1 million and $5.7 million of the allowance for loan and lease losses for the three and nine months ended September 30, 2021, respectively, and increased the allowance by $10.0 million and $29.3 million for the three and nine months ended September 30, 2020, respectively. For acquired impaired loans, the Company increased the allowance for loan and lease losses by $405,000 and recaptured $2.2 million of allowance for the three and nine months ended September 30, 2021, respectively. The Company increased the allowance for loan and lease losses by $295,000 and $2.3 million for the three and nine months ended September 30, 2020, respectively for acquired impaired loans.

19

BYLINE BANCORP, INC. AND SUBSIDIARIES

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(Table dollars in thousands, except share and per share data) (Unaudited)

For loans individually evaluated for impairment, the Company recaptured $1.0 million of the allowance for loan and lease losses and increased the allowance by $602,000 for the three and nine months ended September 30, 2021, respectively. The Company increased the allowance on loans individually evaluated for impairment by $768,000 and $4.1 million for the three and nine months ended September 30, 2020, respectively. For loans collectively evaluated for impairment, the Company decreased the allowance for loan and lease losses by $498,000 and $4.2 million for the three and nine months ended September 30, 2021, and increased the allowance for loan and lease losses by $8.9 million and $23.0 million for the three and nine months ended September 30, 2020, respectively.

An allowance for loan and lease loss allocation has not been made for Paycheck Protection Program (“PPP”) loans as these loans are fully guaranteed by the Small Business Association ("SBA"). On a quarterly basis, the Company assesses the collectability of its government guarantee loan and lease portfolio using historical loss experience in its small business lending unit.

The following tables summarize the recorded investment, unpaid principal balance, and related allowance for loans and leases considered impaired as of September 30, 2021 and December 31, 2020, which exclude acquired impaired loans. For purposes of these tables, the unpaid principal balance represents the outstanding contractual balance. Impaired loans include loans that are individually evaluated for impairment as well as troubled debt restructurings for all loan categories. The sum of non-accrual loans and loans past due 90 days still on accrual will differ from the total impaired loan amount.

September 30, 2021	Recorded Investment		Unpaid Principal Balance		Related Allowance
With no related allowance recorded
Commercial real estate	$	20,432	$	25,512	$	—
Residential real estate		3,850		3,901		—
Commercial and industrial		14,212		15,999		—
With an allowance recorded
Commercial real estate		25,131		26,569		8,420
Residential real estate		96		152		—
Commercial and industrial		23,477		25,614		16,142
Total impaired loans	$	87,198	$	97,747	$	24,562

December 31, 2020	Recorded Investment		Unpaid Principal Balance		Related Allowance
With no related allowance recorded
Commercial real estate	$	32,473	$	34,792	$	—
Residential real estate		1,558		1,644		—
Commercial and industrial		17,944		19,917		—
With an allowance recorded
Commercial real estate		13,696		14,919		5,034
Residential real estate		272		274		78
Commercial and industrial		29,412		32,018		18,848
Total impaired loans	$	95,355	$	103,564	$	23,960

20

BYLINE BANCORP, INC. AND SUBSIDIARIES

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(Table dollars in thousands, except share and per share data) (Unaudited)

The following tables summarize the average recorded investment and interest income recognized for loans and leases considered impaired, which excludes acquired impaired loans, for the nine months ended:

September 30, 2021	Average Recorded Investment		Interest Income Recognized
With no related allowance recorded
Commercial real estate	$	28,480	$	920
Residential real estate		2,788		109
Commercial and industrial		16,668		481
With an allowance recorded
Commercial real estate		27,620		1,185
Residential real estate		207		2
Commercial and industrial		28,785		1,666
Total impaired loans	$	104,548	$	4,363

September 30, 2020	Average Recorded Investment		Interest Income Recognized
With no related allowance recorded
Commercial real estate	$	22,511	$	927
Residential real estate		1,615		26
Construction, land development, and other land		2,984		220
Commercial and industrial		16,991		493
With an allowance recorded
Commercial real estate		13,329		526
Residential real estate		460		21
Commercial and industrial		21,352		1,078
Total impaired loans	$	79,242	$	3,291

The following tables summarize the risk rating categories of the loans and leases considered for inclusion in the allowance for loan and lease losses calculation, excluding acquired impaired loans, as of September 30, 2021 and December 31, 2020:

September 30, 2021	Commercial Real Estate		Residential Real Estate		Construction, Land Development, and Other Land		Commercial and Industrial		Paycheck Protection Program		Installment and Other		Lease Financing Receivables		Total
Pass	$	1,297,981	$	422,843	$	291,496	$	1,261,335	$	268,081	$	1,190	$	335,475	$	3,878,401
Watch		143,047		16,862		37,795		196,288		—		83		264		394,339
Special Mention		48,605		3,036		7,375		30,841		—		—		1,934		91,791
Substandard		43,924		3,120		—		41,290		—		—		786		89,120
Doubtful		—		—		—		—		—		—		297		297
Loss		—		—		—		—		—		—		—		—
Total	$	1,533,557	$	445,861	$	336,666	$	1,529,754	$	268,081	$	1,273	$	338,756	$	4,453,948

December 31, 2020	Commercial Real Estate		Residential Real Estate		Construction, Land Development, and Other Land		Commercial and Industrial		Paycheck Protection Program		Installment and Other		Lease Financing Receivables		Total
Pass	$	1,064,623	$	463,103	$	180,458	$	1,027,399	$	517,815	$	1,706	$	222,818	$	3,477,922
Watch		134,381		22,086		46,162		225,930		—		96		47		428,702
Special Mention		60,022		3,795		—		56,784		—		—		2,721		123,322
Substandard		54,160		4,447		—		48,609		—		1		955		108,172
Doubtful		—		—		—		—		—		—		600		600
Loss		—		—		—		—		—		—		—		—
Total	$	1,313,186	$	493,431	$	226,620	$	1,358,722	$	517,815	$	1,803	$	227,141	$	4,138,718

21

BYLINE BANCORP, INC. AND SUBSIDIARIES

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(Table dollars in thousands, except share and per share data) (Unaudited)

The following tables summarize contractual delinquency information for acquired non-impaired and originated loans and leases by category at September 30, 2021 and December 31, 2020:

September 30, 2021	30-59 Days Past Due		60-89 Days Past Due		Greater than 90 Days and Accruing		Non- accrual		Total Past Due		Current		Total
Commercial real estate	$	330	$	1,426	$	—	$	17,082	$	18,838	$	1,514,719	$	1,533,557
Residential real estate		1,087		—		—		2,127		3,214		442,647		445,861
Construction, land development,    and other land		2,035		—		—		—		2,035		334,631		336,666
Commercial and industrial		1,653		594		—		14,272		16,519		1,513,235		1,529,754
Paycheck Protection Program		—		—		—		—		—		268,081		268,081
Installment and other		39		—		—		—		39		1,234		1,273
Lease financing receivables		973		98		—		984		2,055		336,701		338,756
Total	$	6,117	$	2,118	$	—	$	34,465	$	42,700	$	4,411,248	$	4,453,948

December 31, 2020	30-59 Days Past Due		60-89 Days Past Due		Greater than 90 Days and Accruing		Non- accrual		Total Past Due		Current		Total
Commercial real estate	$	1,544	$	4,194	$	—	$	15,969	$	21,707	$	1,291,479	$	1,313,186
Residential real estate		1,686		—		—		1,929		3,615		489,816		493,431
Construction, land development,    and other land		—		—		—		—		—		226,620		226,620
Commercial and industrial		4,521		1,290		—		21,936		27,747		1,330,975		1,358,722
Paycheck Protection Program												517,815		517,815
Installment and other		6		—		—		1		7		1,796		1,803
Lease financing receivables		996		376		—		1,268		2,640		224,501		227,141
Total	$	8,753	$	5,860	$	—	$	41,103	$	55,716	$	4,083,002	$	4,138,718

Trouble debt restructurings (“TDRs”) are granted due to borrower financial difficulty and provide for a modification of loan repayment terms. TDRs are treated in the same manner as impaired loans for purposes of calculating the allowance for loan and lease losses. The tables below present TDRs by loan category as of September 30, 2021 and December 31, 2020:

September 30, 2021	Number of Loans		Pre- Modification Outstanding Recorded Investment		Post- Modification Outstanding Recorded Investment		Charge-offs		Specific Reserves
Accruing:
Commercial real estate		7	$	2,130	$	2,130	$	—	$	209
Commercial and industrial		1		63		63		—		63
Residential real estate		2		173		173		—		—
Total accruing		10		2,366		2,366		—		272
Non-accruing:
Commercial real estate		3		856		740		116		311
Commercial and industrial		3		1,730		1,107		623		508
Total non-accruing		6		2,586		1,847		739		819
Total troubled debt restructurings		16	$	4,952	$	4,213	$	739	$	1,091

22

BYLINE BANCORP, INC. AND SUBSIDIARIES

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(Table dollars in thousands, except share and per share data) (Unaudited)

December 31, 2020	Number of Loans		Pre- Modification Outstanding Recorded Investment		Post- Modification Outstanding Recorded Investment		Charge-offs		Specific Reserves
Accruing:
Commercial real estate		8	$	2,187	$	2,187	$	—	$	104
Commercial and industrial		1		78		78		—		78
Residential real estate		3		230		230		—		—
Total accruing		12		2,495		2,495		—		182
Non-accruing:
Commercial real estate		4		1,609		1,362		247		102
Commercial and industrial		14		4,420		4,288		132		3,157
Total non-accruing		18		6,029		5,650		379		3,259
Total troubled debt restructurings		30	$	8,524	$	8,145	$	379	$	3,441

In addition, there was no commitment outstanding on troubled debt restructurings at September 30, 2021 or December 31, 2020.

Loans modified as troubled debt restructurings that occurred during the three and nine months ended September 30, 2021 and 2020 were:

	Three Months Ended						Nine Months Ended
	September 30,						September 30,
	2021			2020			2021			2020
Accruing:
Beginning balance	$	2,395		$	3,151		$	2,495		$	1,771
Additions		—			604			281			604
Net payments		(29	)		(1,462	)		(410	)		(1,538	)
Net transfers from non-accrual		—			—			—			1,456
Ending balance		2,366			2,293			2,366			2,293
Non-accruing:
Beginning balance		4,441			7,449			5,650			8,800
Additions		—			—			673			5,633
Net payments		(2,584	)		(302	)		(3,568	)		(1,688	)
Charge-offs		(10	)		(852	)		(908	)		(4,994	)
Net transfers to accrual		—			—			—			(1,456	)
Ending balance		1,847			6,295			1,847			6,295
Total troubled debt restructurings	$	4,213		$	8,588		$	4,213		$	8,588

There were no troubled debt restructurings that subsequently defaulted within twelve months of the restructure date during the three and nine months ended September 30, 2021 or 2020.

At September 30, 2021 and December 31, 2020, the reserve for unfunded commitments was $1.5 million and $1.9 million, respectively. During the three and nine months ended September 30, 2021, there was a recapture for unfunded commitments of $79,000 and $363,000, respectively. During the three and nine months ended September 30, 2020, the provision for unfunded commitments was $519,000 and $1.2 million, respectively. There were no charge-offs or recoveries related to the reserve for unfunded commitments during the periods.

23

BYLINE BANCORP, INC. AND SUBSIDIARIES

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(Table dollars in thousands, except share and per share data) (Unaudited)

Note 6—Servicing Assets

Activity for servicing assets and the related changes in fair value for the three and nine months ended September 30, 2021 and 2020 was as follows:

	Three Months Ended September 30,					Nine Months Ended September 30,
	2021			2020		2021			2020
Beginning balance	$	24,683		$	18,351	$	22,042		$	19,471
Additions, net		1,564			1,794		5,703			4,449
Changes in fair value		(2,650	)		1,122		(4,148	)		(2,653	)
Ending balance	$	23,597		$	21,267	$	23,597		$	21,267

Loans serviced for others are not included in the Consolidated Statements of Financial Condition. The unpaid principal balances of these loans serviced for others as of September 30, 2021 and December 31, 2020 were as follows:

	September 30,		December 31,
	2021		2020
Loan portfolios serviced for:
SBA guaranteed loans	$	1,471,367	$	1,395,713
USDA guaranteed loans		143,847		135,543
Total	$	1,615,214	$	1,531,256

Loan servicing revenue totaled $3.3 million and $2.9 million for each of the three months ended September 30, 2021 and 2020, respectively. Loan servicing revenue totaled $9.3 million and $8.7 million for each of the nine months ended September 30, 2021 and 2020, respectively. Loan servicing asset revaluation, which represents the changes in fair value of servicing assets, resulted in a downward valuation adjustment of $2.7 million and an upward valuation adjustment of $1.1 million for three months ended September 30, 2021 and 2020, respectively. Loan servicing asset revaluations resulted in downward valuation adjustments of $4.1 million and $2.7 million for the nine months ended September 30, 2021 and 2020, respectively.

The fair value of servicing rights is highly sensitive to changes in underlying assumptions. Changes in secondary market premiums and prepayment speed assumptions have the most significant impact on the fair value of servicing rights.

Generally, as interest rates rise on variable rate loans, loan prepayments increase due to an increase in refinance activity, which may result in a decrease in the fair value of servicing assets. Measurement of fair value is limited to the conditions existing and the assumptions used as of a particular point in time, and those assumptions may change over time. Refer to Note 15—Fair Value Measurement for further details.

Note 7—Other Real Estate Owned

The following table presents the change in other real estate owned (“OREO”) for the three and nine months ended September 30, 2021 and 2020:

	Three Months Ended September 30,						Nine Months Ended September 30,
	2021			2020			2021			2020
Beginning balance	$	4,417		$	8,652		$	6,350		$	9,896
Net additions to OREO		—			41			436			127
Proceeds from sales of OREO		(1,498	)		(224	)		(2,998	)		(874	)
Gains (losses) on sales of OREO		114			(41	)		133			44
Valuation adjustments		—			(278	)		(888	)		(1,043	)
Ending balance	$	3,033		$	8,150		$	3,033		$	8,150

At September 30, 2021 and December 31, 2020, the balance of real estate owned included no foreclosed residential real estate properties recorded as a result of obtaining physical possession of the property.

24

BYLINE BANCORP, INC. AND SUBSIDIARIES

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(Table dollars in thousands, except share and per share data) (Unaudited)

At September 30, 2021 and December 31, 2020, the recorded investment of consumer mortgage loans secured by residential real estate properties for which formal foreclosure proceedings were in process was $3.1 million and $3.3 million, respectively.

There were no internally financed sales of OREO for the three and nine months ended September 30, 2021 or 2020.

Note 8—Leases

The Company enters into leases in the normal course of business primarily for its banking facilities and branches. The Company’s operating leases have varying maturity dates through year end 2042, some of which include renewal or termination options to extend the lease. In addition, the Company leases or subleases real estate to third parties. The Company includes lease extension and termination options in the lease term if, after considering relevant economic factors, it is reasonably certain the Company will exercise the option. In addition, the Company has elected to account for any non-lease components in its real estate leases as part of the associated lease component. The Company has also elected not to recognize leases with original lease terms of 12 months or less (short-term leases) on the Company’s balance sheet.

Leases are classified at the lease commencement date. Lease expense for operating leases and short-term leases is recognized on a straight-line basis over the lease term. Right-of-use assets represent our right to use an underlying asset for the lease term and lease liabilities represent our obligation to make lease payments arising from the lease. Right-of-use assets and lease liabilities are recognized at the lease commencement date based on the estimated present value of lease payments over the lease term.

The following table summarizes the amount and balance sheet line item for our operating lease right-of-use asset and liability as of September 30, 2021:

	Balance Sheet Line Item	September 30, 2021
Operating lease right-of-use asset	Accrued interest receivable and other assets	$	11,580
Operating lease liability	Accrued interest payable and other liabilities		13,744

The Company uses its incremental borrowing rate at lease commencement to calculate the present value of lease payments when the rate implicit in a lease is not known. The Company’s incremental borrowing rate is based on the FHLB regular advance rate, adjusted for the lease term and other factors. At September 30, 2021, the weighted-average discount rate of operating leases was 0.85% and the weighted average remaining life of operating leases was 6.0 years.

The future minimum lease payments for operating leases, subsequent to September 30, 2021, as recorded on the balance sheet, are summarized as follows:

	Operating Lease Commitments
2021	$	1,515
2022		3,618
2023		2,412
2024		2,194
2025		1,505
Thereafter		3,108
Total undiscounted lease payments		14,352
Less: imputed interest		(608	)
Net lease liabilities	$	13,744

The Company’s rental expenses for the three months ended September 30, 2021 and 2020 were $1.2 million and $1.6 million, respectively. The Company’s rental expenses for the nine months ended September 30, 2021 and 2020 were $4.0 million and $4.9 million, respectively. For the three months ended September 30, 2021 and 2020, the Company received $166,000 and $184,000, respectively, in sublease income. For the nine months ended September 30, 2021 and 2020, the Company received $479,000 and $549,000, respectively, in sublease income. The total amount of minimum rentals to be received in the future on these subleases is approximately $1.5 million, and the leases have contractual lives extending through

25

BYLINE BANCORP, INC. AND SUBSIDIARIES

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(Table dollars in thousands, except share and per share data) (Unaudited)

2026. In addition to the above required lease payments, the Company has contractual obligations related primarily to information technology contracts and other maintenance contracts.

Note 9—Goodwill, Core Deposit Intangible and Other Intangible Assets

The following tables summarize the changes in the Company’s goodwill, core deposit intangible assets, and customer relationship intangible assets for the three and nine months ended September 30, 2021 and 2020:

	For the Three Months Ended September 30,
	2021								2020
	Goodwill		Core Deposit Intangible			Customer Relationship Intangible			Goodwill		Core Deposit Intangible			Customer Relationship Intangible
Beginning balance	$	148,353	$	18,346		$	2,335		$	148,353	$	25,459		$	2,658
Amortization		—		(1,672	)		(66	)		—		(1,825	)		(122	)
Ending balance	$	148,353	$	16,674		$	2,269		$	148,353	$	23,634		$	2,536
Accumulated amortization	N/A		$	38,792		$	947		N/A		$	31,832		$	680
Weighted average remaining    amortization period	N/A		5.0 Years			8.5 Years			N/A		5.8 Years			9.7 Years

	Nine Months Ended September 30,
	2021								2020
	Goodwill		Core Deposit Intangible			Customer Relationship Intangible			Goodwill		Core Deposit Intangible			Customer Relationship Intangible
Beginning balance	$	148,353	$	21,809		$	2,469		$	148,353	$	29,111		$	2,791
Amortization		—		(5,135	)		(200	)		—		(5,477	)		(255	)
Ending balance	$	148,353	$	16,674		$	2,269		$	148,353	$	23,634		$	2,536
Accumulated amortization	N/A		$	38,792		$	947		N/A		$	31,832		$	680
Weighted average remaining    amortization period	N/A		5.0 Years			8.5 Years			N/A		5.8 Years			9.7 Years

The following table presents the estimated amortization expense for core deposit intangible and customer relationship intangible assets remaining at September 30, 2021:

	Estimated Amortization
2021	$	1,737
2022		6,386
2023		4,336
2024		2,286
2025		1,721
Thereafter		2,477
Total	$	18,943

Note 10—Income Taxes

The Company uses an estimated annual effective tax rate method in computing its interim tax provision. This effective tax rate is based on forecasted annual pre-tax income, permanent tax differences and statutory tax rates.

The effective tax rate for the nine months ended September 30, 2021 and 2020 was 25.3% and 28.5%, respectively. The Company recorded discrete income tax benefit of $166,000 and a provision of $231,000 related to the exercise of stock options and vesting of restricted shares for the nine months ended September 30, 2021 and 2020, respectively.

Net deferred tax assets increased to $45.2 million at September 30, 2021 compared to $40.2 million at December 31, 2020 primarily a result of unrealized losses on available-for-sale securities.

26

BYLINE BANCORP, INC. AND SUBSIDIARIES

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(Table dollars in thousands, except share and per share data) (Unaudited)

During the second quarter 2021, Illinois Senate Bill 2017 was passed which created a temporary limitation on Net Loss Deduction ("NLD") usage. For tax years 2021, 2022, and 2023, C Corporations are limited to applying a maximum of $100,000 of NLD to taxable income. NLDs that are limited during these years have an extended expiration date for the years in which they are limited. The extended expiration of the Company’s NLD carryforwards are from December 31, 2026 to December 31, 2033.

Note 11—Deposits

The composition of deposits was as follows as of September 30, 2021 and December 31, 2020:

	September 30,		December 31,
	2021		2020
Non-interest-bearing demand deposits	$	2,117,749	$	1,762,676
Interest-bearing checking accounts		652,824		494,424
Money market demand accounts		1,057,419		1,142,709
Other savings		627,294		564,700
Time deposits (below $250,000)		553,364		600,810
Time deposits ($250,000 and above)		149,628		186,712
Total deposits	$	5,158,278	$	4,752,031

There were no brokered deposits included in Time deposits of $250,000 or more at September 30, 2021, and $35.0 million at December 31, 2020, respectively.

Note 12—Other Borrowings

The following is a summary of the Company’s other borrowings as of September 30, 2021 and December 31, 2020:

	September 30,		December 31,
	2021		2020
Paycheck Protection Program Liquidity Facility	$	156,404	$	371,907
Federal Home Loan Bank advances		355,000		234,000
Securities sold under agreements to repurchase		27,715		41,994
Line of credit		—		—
Total	$	539,119	$	647,901

On April 21, 2020, the Bank entered into a Letter Agreement with the Federal Reserve Bank of Chicago that allows the Bank to access the Paycheck Protection Program Liquidity Facility (the “PPPLF”). Under the terms of the PPPLF, the Bank pledges loans originated under the PPP to the Federal Reserve Bank of Chicago as collateral for available advances under the PPPLF. Advances under the PPPLF are in an amount equal to the aggregate principal amount of PPP loans pledged by Byline Bank, carry an interest rate of 35 basis points and mature on the maturity date of the PPP loans pledged as collateral for the advance. As of September 30, 2021, the PPPLF balance was $156.4 million with an interest rate of 0.35% with various maturity dates from April 2022 to February 2026.

Byline Bank has the capacity to borrow funds from the discount window of the Federal Reserve System. As of September 30, 2021 and December 31, 2020, there were no outstanding advances under the Federal Reserve Bank discount window line.

At September 30, 2021, fixed-rate Federal Home Loan Bank (“FHLB”) advances totaled $355.0 million, with interest rates ranging from 0.00% to 0.22% and maturities ranging from November 2021 to May 2022. Advances from the FHLB are collateralized by residential real estate loans, commercial real estate loans, and securities. The Bank’s maximum borrowing capacity is limited to 35% of total assets. Required investment in FHLB stock is $4.50 for every $100 in advances.

Securities sold under agreements to repurchase represent a demand deposit product offered to customers that sweep balances in excess of the FDIC insurance limit into overnight repurchase agreements. The Company pledges securities as collateral for the repurchase agreements. Refer to Note 3—Securities for additional discussion.

27

BYLINE BANCORP, INC. AND SUBSIDIARIES

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(Table dollars in thousands, except share and per share data) (Unaudited)

On October 13, 2016, the Company entered into a $30.0 million revolving credit agreement with a correspondent bank. Through subsequent amendments, the revolving credit agreement was reduced to $15.0 million and the maturity of the credit facility was extended to October 9, 2020. The amended revolving line of credit bears interest at either the London Interbank Offered Rate (“LIBOR”) plus 195 basis points or the Prime Rate minus 75 basis points, not to be less than 2.00%, based on the Company’s election, which is required to be communicated at least three business days prior to the commencement of an interest period. If the Company fails to provide timely notification, the interest rate will be Prime Rate minus 75 basis points. At September 30, 2021 and December 31, 2020, the line of credit had no outstanding balance. On October 8, 2021, the Company extended the maturity of the credit facility to October 7, 2022.

The following table presents short-term credit lines available for use as of September 30, 2021 and December 31, 2020:

	September 30,		December 31,
	2021		2020
Federal Home Loan Bank line	$	1,910,295	$	2,016,212
Federal Reserve Bank of Chicago discount window line		622,306		874,677
Available federal funds lines		115,000		115,000

The Company hedges interest rates on borrowed funds using interest rate swaps through which the Company receives variable amounts and pays fixed amounts. Refer to Note 16—Derivative Instruments and Hedging Activities for additional discussion.

Note 13—Subordinated Notes and Junior Subordinated Debentures

In 2020, the Company issued $75.0 million in fixed-to-floating subordinated notes that mature on July 1, 2030. The subordinated notes bear a fixed interest rate of 6.00% until July 1, 2025 and a floating interest rate equal to a benchmark rate, which is expected to be the three-month Secured Overnight Financing Rate, plus 588 basis points thereafter until maturity. The transaction resulted in debt issuance costs of approximately $1.7 million that will be amortized over 10 years.

As of September 30, 2021, the net liability outstanding of the subordinated notes was $73.5 million. The Company may, at its option, redeem the notes, in whole or in part, on a semi-annual basis beginning on July 1, 2025, subject to obtaining the prior approval of the Federal Reserve to the extent such approval is then required. The subordinated notes qualify as Tier 2 capital for regulatory capital purposes.

At September 30, 2021 and December 31, 2020, the Company’s junior subordinated debentures by issuance were as follows:

Name of Trust	Aggregate Principal Amount September 30, 2021			Aggregate Principal Amount December 31, 2020			Stated Maturity	Contractual Rate at September 30, 2021			Interest Rate Spread
Metropolitan Statutory Trust 1	$	35,000		$	35,000		March 17, 2034		2.91	%	Three-month LIBOR + 2.79%
First Evanston Bancorp Trust I		10,000			10,000		March 15, 2035		1.90	%	Three-month LIBOR + 1.78%
Total liability, at par		45,000			45,000
Discount		(8,204	)		(8,549	)
Total liability, at carrying value	$	36,796		$	36,451

In 2004, the Company’s predecessor, Metropolitan Bank Group, Inc., issued $35.0 million floating rate junior subordinated debentures to Metropolitan Statutory Trust 1, which was formed for the issuance of trust preferred securities. The debentures bear interest at three-month LIBOR plus 2.79% (2.91% and 3.02% at September 30, 2021 and December 31, 2020, respectively). Interest is paid on a quarterly basis. The Company has the right to redeem the debentures, in whole or in part, on any interest payment date on or after March 2009. Accrued interest payable was $41,000 and $45,000 as of September 30, 2021 and December 31, 2020, respectively.

As part of the First Evanston acquisition, the Company assumed the obligations to First Evanston Bancorp Trust I of $10.0 million in principal amount, which was formed for the issuance of trust preferred securities. Beginning on March 15, 2010, the interest rate reset to the three-month LIBOR plus 1.78% (1.90% and 2.00% at September 30, 2021 and December 31,

28

BYLINE BANCORP, INC. AND SUBSIDIARIES

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(Table dollars in thousands, except share and per share data) (Unaudited)

2020, respectively), which is in effect until the debentures mature in 2035. Interest is paid on a quarterly basis. The Company has the right to redeem the debentures, in whole or in part, on any interest payment date on or after March 2010. The Company has the option to defer interest payments on the debentures from time to time for a period not to exceed five consecutive years. Accrued interest payable was $8,000 and $9,000 as of September 30, 2021 and December 31, 2020, respectively.

The Trusts are not consolidated with the Company. Accordingly, the Company reports the subordinated debentures held by the Trusts as liabilities. The Company owns all of the common securities of each trust. The junior subordinated debentures qualify, and are treated as, Tier 1 regulatory capital of the Company subject to regulatory limitations. The trust preferred securities issued by each trust rank equally with the common securities in right of payment, except that if an event of default under the indenture governing the notes has occurred and is continuing, the preferred securities will rank senior to the common securities in right of payment.

Note 14—Commitments and Contingent Liabilities

Legal contingencies—In the ordinary course of business, the Company and Bank have various outstanding commitments and contingent liabilities that are not recognized in the accompanying consolidated financial statements. In addition, the Company may be a defendant in certain claims and legal actions arising in the ordinary course of business. In the opinion of management, after consultation with legal counsel, the ultimate disposition of these matters is currently not expected to have a material adverse effect on the Company’s Consolidated Financial Statements.

Operating lease commitments—Refer to Note 8—Lease for discussion of operating lease commitments.

Commitments to extend credit—The Company is party to financial instruments with off-balance sheet risk in the normal course of business to meet the financing needs of its customers. These financial instruments include commitments to extend credit and standby letters of credit. Those instruments involve, to varying degrees, elements of credit and interest rate risk in excess of the amount recognized in the Consolidated Statements of Financial Condition. The contractual or notional amounts of those instruments reflect the extent of involvement the Company has in particular classes of financial instruments.

The Company’s exposure to credit loss in the event of non-performance by the other party to the financial instrument for commitments to extend credit and letters of credit is represented by the contractual or notional amount of those instruments. The Company uses the same credit policies in making commitments and conditional obligations as it does for funded instruments. The Company does not anticipate any material losses as a result of the commitments and letters of credit.

The following table summarizes the contract or notional amount of outstanding loan and lease commitments at September 30, 2021 and December 31, 2020:

	September 30, 2021						December 31, 2020
	Fixed Rate		Variable Rate		Total		Fixed Rate		Variable Rate		Total
Commitments to extend credit	$	173,848	$	1,520,986	$	1,694,834	$	106,183	$	1,261,872	$	1,368,055
Letters of credit		653		58,479		59,132		652		58,120		58,772
Total	$	174,501	$	1,579,465	$	1,753,966	$	106,835	$	1,319,992	$	1,426,827

Commitments to extend credit are agreements to lend to a customer as long as there is no violation of any condition established in the contract. Commitments generally have fixed expiration dates or other termination clauses and may require payment of a fee. Since many of the commitments are expected to expire without being drawn upon, the total commitment amount does not necessarily represent future cash requirements. The Company evaluates each customer’s creditworthiness on a case-by-case basis. The amount of collateral obtained, if deemed necessary by the Company upon extension of credit, is based on management’s credit evaluation of the counterparty. Collateral is primarily obtained in the form of commercial and residential real estate (including income producing commercial properties).

Letters of credit are conditional commitments issued by the Company to guarantee to a third-party the performance of a customer. Those guarantees are primarily issued to support public and private borrowing arrangements, bond financing and similar transactions. The credit risk involved in issuing letters of credit is essentially the same as that involved in extending loan facilities to customers.

29

BYLINE BANCORP, INC. AND SUBSIDIARIES

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(Table dollars in thousands, except share and per share data) (Unaudited)

Commitments to make loans are generally made for periods of 90 days or less. The fixed rate loan commitments have interest rates ranging from 1.25% to 18.00% and maturities up to 2050. Variable rate loan commitments have interest rates ranging from 1.25% to 8.25% and maturities up to 2044.

Note 15—Fair Value Measurement

Fair value is the exchange price that would be received for an asset or paid to transfer a liability (exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. In addition, the Company has the ability to obtain fair values for markets that are not accessible.

These types of inputs create the following fair value hierarchy:

Level 1—Quoted prices in active markets for identical assets or liabilities.

Level 2—Quoted prices for similar instruments in active markets, quoted prices for identical or similar instruments in markets that are not active and model-derived valuations whose inputs are observable or whose significant value drivers are observable.

Level 3—Unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the asset or liability. Unobservable inputs are used to measure fair value to the extent that observable inputs are not available. The Company’s own data used to develop unobservable inputs may be adjusted for market considerations when reasonably available.

The categorization within the valuation hierarchy is based upon the lowest level of input that is significant to the fair value measurement. The Company’s assessment of the significance of a particular input to the fair value measurement in its entirety requires judgment, and considers factors specific to assets and liabilities.

The Company used the following methods and significant assumptions to estimate fair value for certain assets measured and carried at fair value on a recurring basis:

Securities available-for-sale—The Company obtains fair value measurements from an independent pricing service. Management reviews the procedures used by the third party, including significant inputs used in the fair value calculations. The fair value measurements consider observable data that may include dealer quotes, market spreads, cash flows, the U.S. Treasury yield curve, live trading levels, trade execution data, market consensus prepayment speeds, credit information and the bond’s terms and conditions, among other things. When market quotes are not readily accessible or available, alternative approaches are utilized, such as matrix or model pricing.

The Company’s methodology for pricing non-rated bonds focuses on three distinct inputs: equivalent rating, yield and other pricing terms. To determine the rating for a given non-rated municipal bond, the Company references a publicly issued bond by the same issuer if available as well as other additional key metrics to support the credit worthiness. Typically, pricing for these types of bonds would require a higher yield than a similar rated bond from the same issuer. A reduction in price is applied to the rating obtained from the comparable bond, as the Company believes if liquidated, a non-rated bond would be valued less than a similar bond with a verifiable rating. The reduction applied by the Company is one notch lower (i.e. a “AA” rating for a comparable bond would be reduced to “AA-” for the Company’s valuation). In 2021 and 2020, all of the ratings derived by the Company were “BBB” or better with and without comparable bond proxies. The fair value measurement of municipal bonds is sensitive to the rating input, as a higher rating typically results in an increased valuation. The remaining pricing inputs used in the bond valuation are observable. Based on the rating determined, the Company obtains a corresponding current market yield curve available to market participants. Other terms including coupon, maturity date, redemption price, number of coupon payments per year, and accrual method are obtained from the individual bond term sheets.

Equity and other securities—The Company utilizes the same fair value measurement methodology for equity and other securities as detailed in the securities available-sale portfolio above.

Servicing assets—Fair value is based on a loan-by-loan basis taking into consideration the original term to maturity, the current age of the loan and the remaining term to maturity. The valuation methodology utilized for the servicing assets begins with generating estimated future cash flows for each servicing asset, based on their unique characteristics and market-based assumptions for prepayment speeds and costs to service. The present value of the future cash flows are then calculated utilizing market-based discount rate assumptions.

Derivative instruments—Interest rate derivatives are valued by a third party, using models that primarily use market observable inputs, such as yield curves, and are validated by comparison with valuations provided by the respective

30

BYLINE BANCORP, INC. AND SUBSIDIARIES

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(Table dollars in thousands, except share and per share data) (Unaudited)

counterparties. Derivative financial instruments are included in other assets and other liabilities in the Consolidated Statements of Financial Condition.

The following tables summarize the Company’s financial assets and liabilities that were measured at fair value on a recurring basis at September 30, 2021 and December 31, 2020:

			Fair Value Measurements Using
September 30, 2021	Fair Value		Level 1		Level 2		Level 3
Financial assets
Securities available-for-sale
U.S. Treasury Notes	$	8,578	$	8,578	$	—	$	—
U.S. Government agencies		123,264		—		123,264		—
Obligations of states, municipalities, and political    subdivisions		105,060		—		105,060		—
Mortgage-backed securities; residential
Agency		785,173		—		785,173		—
Non-Agency		64,009		—		64,009		—
Mortgage-backed securities; commercial
Agency		237,409		—		237,409		—
Corporate securities		66,827		—		66,827		—
Asset-backed securities		37,285		—		37,285		—
Equity and other securities, at fair value
Mutual funds		4,424		4,424		—		—
Equity securities		5,875		—		5,189		686
Servicing assets		23,597		—		—		23,597
Derivative assets		13,463		—		13,463		—
Financial liabilities
Derivative liabilities		12,348		—		12,348		—

			Fair Value Measurements Using
December 31, 2020	Fair Value		Level 1		Level 2		Level 3
Financial assets
Securities available-for-sale
U.S. Treasury Notes	$	23,812	$	23,812	$	—	$	—
U.S. Government agencies		113,551		—		113,551		—
Obligations of states, municipalities, and political    subdivisions		142,419		—		142,419
Mortgage-backed securities; residential
Agency		778,391		—		778,391		—
Non-Agency		32,981		—		32,981		—
Mortgage-backed securities; commercial
Agency		250,152		—		250,152		—
Corporate securities		60,768		—		60,768		—
Asset-backed securities		45,156		—		45,156		—
Equity and other securities, at fair value
Mutual funds		2,983		2,983		—		—
Equity securities		5,781		—		5,096		685
Servicing assets		22,042		—		—		22,042
Derivative assets		17,149		—		17,149		—
Financial liabilities
Derivative liabilities		18,133		—		18,133		—

The Company did not have any transfers to or from Level 3 of the fair value hierarchy during the nine months ended September 30, 2021 and 2020.

31

BYLINE BANCORP, INC. AND SUBSIDIARIES

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(Table dollars in thousands, except share and per share data) (Unaudited)

The following table presents additional information about financial assets measured at fair value on recurring basis for which the Company used significant unobservable inputs (Level 3):

	Nine Months Ended September 30,
	2021		2020			2021			2020
	Investment Securities					Servicing Assets
Balance, beginning of period	$	685	$	700		$	22,042		$	19,471
Additions, net		—		—			5,703			4,449
Change in fair value		1		(16	)		(4,148	)		(2,653	)
Balance, end of period	$	686	$	684		$	23,597		$	21,267

The following table presents additional information about the unobservable inputs used in the fair value measurements on recurring basis that were categorized within Level 3 of the fair value hierarchy as of September 30, 2021:

Financial Instruments	Valuation Technique	Unobservable Inputs	Range of Inputs	Weighted Average Range			Impact to Valuation from an Increased or Higher Input Value
Single issuer trust preferred	Discounted cash flow	Discount rate	3.1% - 6.4%		4.5	%	Decrease
Servicing assets	Discounted cash flow	Prepayment speeds	0.5% - 31.8%		14.3	%	Decrease
		Discount rate	(3.0)% - 50.0%		8.1	%	Decrease
		Expected weighted average loan life	0.2 - 8.5 years	3.9 years			Increase

The Company used the following methods and significant assumptions to estimate fair value for certain assets measured and carried at fair value on a non-recurring basis:

Impaired loans (excluding acquired impaired loans)—Impaired loans, other than those existing on the date of a business acquisition, are primarily carried at the fair value of the underlying collateral, less estimated costs to sell, if the loan is collateral dependent. Valuations of impaired loans that are collateral dependent are supported by third party appraisals in accordance with the Bank’s credit policy. Other valuation methods include analysis of discounted cash flows, which measures the present value of expected future cash flows discounted at the loan’s effective interest rate. Impaired loans that are not collateral dependent are not material.

Assets held for sale—Assets held for sale consist of former branch locations and real estate previously purchased for expansion. Assets are considered held for sale when management has approved to sell the assets following a branch closure or other events. The properties are being actively marketed and transferred to assets held for sale based on the lower of carrying value or its fair value, less estimated costs to sell. The Company records assets held for sale on the Consolidated Statements of Financial Condition within accrued interest receivable and other assets.

Other real estate owned—Certain assets held within other real estate owned represent real estate or other collateral that has been adjusted to its estimated fair value, less cost to sell, as a result of transferring from the loan portfolio at the time of foreclosure or repossession and based on management’s periodic impairment evaluation. From time to time, non-recurring fair value adjustments to other real estate owned are recorded to reflect partial write-downs based on an observable market price or current appraised value of property.

Adjustments to fair value based on such non-recurring transactions generally result from the application of lower-of-cost-or-market accounting or write-downs of individual assets due to impairment. The following tables summarize the

32

BYLINE BANCORP, INC. AND SUBSIDIARIES

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(Table dollars in thousands, except share and per share data) (Unaudited)

Company’s assets that were measured at fair value on a non-recurring basis, excluding acquired impaired loans, as of September 30, 2021 and December 31, 2020:

			Fair Value Measurements Using
September 30, 2021	Fair Value		Level 1		Level 2		Level 3
Non-recurring
Impaired loans (excluding acquired impaired loans)
Commercial real estate	$	37,143	$	—	$	—	$	37,143
Residential real estate		3,946		—		—		3,946
Commercial and industrial		21,547		—		—		21,547
Assets held for sale		10,982		—		—		10,982
Other real estate owned		3,033		—		—		3,033

			Fair Value Measurements Using
December 31, 2020	Fair Value		Level 1		Level 2		Level 3
Non-recurring
Impaired loans (excluding acquired impaired loans)
Commercial real estate	$	41,135	$	—	$	—	$	41,135
Residential real estate		1,752		—		—		1,752
Commercial and industrial		28,508		—		—		28,508
Assets held for sale		13,023		—		—		13,023
Other real estate owned		6,350		—		—		6,350

The following methods and assumptions were used by the Company in estimating fair values of other assets and liabilities for disclosure purposes:

Cash and cash equivalents—For these short-term instruments, the carrying amount is a reasonable estimate of fair value.

Securities held-to-maturity—The Company obtains fair value measurements from an independent pricing service. Management reviews the procedures used by the third party, including significant inputs used in the fair value calculations. The fair value measurements consider observable data that may include dealer quotes, market spreads, cash flows, the U.S. Treasury yield curve, live trading levels, trade execution data, market consensus prepayment speeds, credit information and the bond’s terms and conditions, among other things. When market quotes are not readily accessible or available, alternative approaches are utilized, such as matrix or model pricing.

Restricted stock—The fair value has been determined to approximate cost.

Loans held for sale—The fair value of loans held for sale are based on quoted market prices, where available, and determined by discounted estimated cash flows using interest rates approximating the Company’s current origination rates for similar loans adjusted to reflect the inherent credit risk.

Loan and lease receivables, net—For certain variable rate loans that reprice frequently and with no significant changes in credit risk, fair value is estimated at carrying value. The fair value of other types of loans is estimated using an exit price notion. It is estimated by discounting future cash flows, using current rates at which similar loans would be made to borrowers with similar credit ratings and for the same remaining maturities.

Deposits—The fair value of demand deposits, savings accounts, and certain money market deposits is the amount payable on demand at the reporting date. The fair value of fixed-maturity certificates of deposit is estimated by discounting future cash flows, using rates currently offered for deposits of similar remaining maturities.

Paycheck Protection Program Liquidity Facility—The carrying amount approximates fair value.

33

BYLINE BANCORP, INC. AND SUBSIDIARIES

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(Table dollars in thousands, except share and per share data) (Unaudited)

Federal Home Loan Bank advances—The fair value of FHLB advances is estimated by discounting the agreements based on maturities using rates currently offered for FHLB advances of similar remaining maturities adjusted for prepayment penalties that would be incurred if the borrowings were paid off on the measurement date.

Securities sold under agreements to repurchase—The carrying amount approximates fair value due to maturities of less than ninety days.

Subordinated notes—The fair value is based on available market prices.

Junior subordinated debentures—The fair value of junior subordinated debentures, in the form of trust preferred securities, is determined using rates currently available to the Company for debt with similar terms and remaining maturities.

Accrued interest receivable and payable—The carrying amount approximates fair value.

Commitments to extend credit and letters of credit—The fair values of these off-balance sheet commitments to extend credit and commercial and letters of credit are not considered practicable to estimate because of the lack of quoted market prices and the inability to estimate fair value without incurring excessive costs.

The estimated fair values of financial instruments not carried at fair value and levels within the fair value hierarchy are as follows:

			September 30,				December 31,
	Fair Value		2021				2020
	Hierarchy Level		Carrying Amount		Estimated Fair Value		Carrying Amount		Estimated Fair Value
Financial assets
Cash and due from banks		1	$	46,900	$	46,900	$	41,432	$	41,432
Interest bearing deposits with other banks		2		95,978		95,978		41,988		41,988
Securities held-to-maturity		2		3,887		4,033		4,395		4,573
Other restricted stock		2		15,927		15,927		10,507		10,507
Loans held for sale		3		48,372		54,739		7,924		8,848
Loans and lease receivables, net (less impaired    loans at fair value)		3		4,485,994		4,478,323		4,202,793		4,205,906
Accrued interest receivable		3		18,857		18,857		20,678		20,678
Financial liabilities
Non-interest-bearing deposits		2		2,117,749		2,117,749		1,762,676		1,762,676
Interest-bearing deposits		2		3,040,529		3,041,101		2,989,355		2,990,735
Accrued interest payable		2		1,687		1,687		1,478		1,478
Paycheck Protection Program Liquidity Facility		2		156,404		156,404		371,907		371,907
Federal Home Loan Bank advances		2		355,000		355,000		234,000		234,000
Securities sold under repurchase agreement		2		27,715		27,715		41,994		41,994
Subordinated notes		2		73,473		83,291		73,342		76,627
Junior subordinated debentures		3		36,796		40,777		36,451		40,543

34

BYLINE BANCORP, INC. AND SUBSIDIARIES

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(Table dollars in thousands, except share and per share data) (Unaudited)

Note 16—Derivative Instruments and Hedge Activities

As required by ASC 815, the Company records all derivatives on the balance sheet at fair value. The accounting for changes in the fair value of derivatives depends on the intended use of the derivative, whether the Company has elected to designate a derivative in a hedging relationship and apply hedge accounting and whether the hedging relationship has satisfied the criteria necessary to apply hedge accounting. The Company records derivative assets and derivative liabilities on the Consolidated Statements of Financial Condition within accrued interest receivable and other assets and accrued interest payable and other liabilities, respectively. The following tables present the fair value of the Company’s derivative financial instruments and classification on the Consolidated Statements of Financial Condition as of September 30, 2021 and December 31, 2020:

	September 30, 2021							December 31, 2020
			Fair Value							Fair Value
	Notional Amount		Other Assets		Other Liabilities			Notional Amount		Other Assets		Other Liabilities
Derivatives designated as hedging instruments
Interest rate swaps designated as cash flow    hedges		400,000	$	1,799	$	(192	)	$	—	$	—	$	—
Derivatives not designated as hedging   instruments
Other interest rate derivatives		458,698		11,664		(12,148	)		383,410		17,149		(18,116	)
Other credit derivatives		7,788		—		(8	)		8,437		—		(17	)
Total derivatives	$	866,486	$	13,463	$	(12,348	)	$	391,847	$	17,149	$	(18,133	)

Interest rate swaps designated as cash flow hedges—Cash flow hedges of interest payments associated with certain other borrowings had notional amounts totaling $400.0 million as of September 30, 2021. There were no cash flow hedges outstanding at December 31, 2020. The Company assesses the effectiveness of each hedging relationship by comparing the changes in fair value of the derivatives hedging instrument with the fair value of the designated hedged transactions. As of September 30, 2021, the cash flow hedges aggregating $400.0 million in notional amounts are comprised of five forward starting pay fixed interest rate swaps, of which one for $100.0 million is effective in March 2022; one for $50.0 million is effective in September 2022; two totaling $200.0 million are effective in March 2023; and one for $50.0 million is effective May 2023.

Included in other comprehensive income is the remaining balance related to previously terminated interest rate swaps designated as cash flow hedges of $253,000 as of September 30, 2021 and $304,000 as of December 31, 2020. These are amortized over the original life of the cash flow hedge. Interest recorded on these swap transactions was $29,000 and $22,000 during the three months ended September 30, 2021, and 2020, respectively, and is reported as a component of interest expense on other borrowings. Interest recorded on these swap transactions was $71,000 and $64,000 during the nine months ended September 30, 2021, and 2020, respectively, and is reported as a component of interest expense on other borrowings. As of September 30, 2021, the Company estimates $868,000 of the unrealized loss to be reclassified as an increase to interest expense during the next twelve months.

The following table reflects the cash flow hedges as of September 30, 2021:

Notional amounts	$	400,000
Derivative assets fair value		1,799
Derivative liabilities fair value		192
Weighted average maturity	5.2 years

The weighted average pay rates of the forward swaps are 0.98% and weighted average receive rates will be determined at the time the forward swaps become effective.

35

BYLINE BANCORP, INC. AND SUBSIDIARIES

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(Table dollars in thousands, except share and per share data) (Unaudited)

The following table reflects the net gains (losses) recorded in accumulated other comprehensive income (loss) and the Consolidated Statements of Operations relating to the cash flow derivative instruments for the nine months ended:

	September 30, 2021							September 30, 2020
	Amount of Loss Recognized in OCI		Amount of Loss Reclassified from OCI to Income as an Increase to Interest Expense			Amount of Gain (Loss) Recognized in Other Non-Interest Income		Amount of Loss Recognized in OCI		Amount of Loss Reclassified from OCI to Income as an Increase to Interest Expense			Amount of Gain (Loss) Recognized in Other Non-Interest Income
Interest rate swaps	$	1,606	$	(71	)	$	—	$	—	$	(64	)	$	—

Derivatives not designated as hedges are not speculative and are used to manage the Company’s exposure to interest rate movements and other identified risks but do not meet the strict hedge accounting requirements and/or the Company has not elected to apply hedge accounting. Changes in the fair value of derivatives not designated in hedging relationships are recorded directly in earnings.

Other interest rate derivatives—The total combined notional amount was $458.7 million as of September 30, 2021 with maturities ranging from January 2022 to September 2031. The fair values of the interest rate derivative agreements are reflected in other assets and other liabilities with corresponding gains or losses reflected in non-interest income. During the three months ended September 30, 2021 and 2020, there were $134,000 and $41,000 of net transaction fees, respectively, included in other non-interest income, related to these derivative instruments. During the nine months ended September 30, 2021 and 2020, there were $840,000 and $700,000 of net transaction fees, respectively, included in other non-interest income, related to these derivative instruments.

These instruments are inherently subject to market risk and credit risk. Market risk is associated with changes in interest rates and credit risk relates to the Company’s risk of loss when the counterparty to a derivative contract fails to perform according to the terms of the agreement. Market and credit risks are managed and monitored as part of the Company’s overall asset-liability management process. The credit risk related to derivatives entered into with certain qualified borrowers is managed through the Company’s loan underwriting process. The Company’s loan underwriting process also approves the Bank’s swap counterparty used to mirror the borrowers’ swap. The Company has a bilateral agreement with each swap counterparty that provides that fluctuations in derivative values are to be fully collateralized with either cash or securities.

The following table reflects other interest rate derivatives as of September 30, 2021:

Notional amounts	$	458,698
Derivative assets fair value		11,664
Derivative liabilities fair value		12,148
Weighted average pay rates		4.23	%
Weighted average receive rates		3.03	%
Weighted average maturity	5.6 years

Other credit derivatives— The Company has entered into risk participation agreements with counterparty banks to assume a portion of the credit risk related to borrower transactions. The credit risk related to these other credit derivatives is managed through the Company’s loan underwriting process. The total notional amount was $7.8 million and $8.4 million as of September 30, 2021 and December 31, 2020, respectively. The fair value of the other credit derivatives are reflected in other liabilities with corresponding gains or losses reflected in non-interest income.

The Company has agreements with its derivative counterparties that contain a cross-default provision under which if the Company defaults on any of its indebtedness, including default where repayment of the indebtedness has not been accelerated by the lender, then the Company could also be declared in default on its derivative obligations. The Company also has agreements with certain derivative counterparties that contain a provision where if the Company fails to maintain its status as a well or adequately capitalized institution, then the counterparty could terminate the derivative positions and the Company would be required to settle its obligations resulted in a net asset position.

36

BYLINE BANCORP, INC. AND SUBSIDIARIES

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(Table dollars in thousands, except share and per share data) (Unaudited)

The following table reflects amounts included in non-interest income in the Consolidated Statements of Operations relating to derivative instruments that are not designated in a hedging relationship for the nine months ended September 30, 2021 and 2020:

	Three Months Ended				Nine Months Ended
	September 30,				September 30,
	2021		2020		2021		2020
Other interest rate derivatives	$	98	$	113	$	482	$	(627	)
Other credit derivatives		2		3		9		(8	)
Total	$	100	$	116	$	491	$	(635	)

The Company records interest rate derivatives subject to master netting agreements at their gross value and does not offset derivative asset and liabilities on the Consolidated Statements of Financial Condition. The table below summarizes the Company’s interest rate derivatives and offsetting positions as of:

	September 30, 2021						December 31, 2020
	Derivative Assets Fair Value			Derivative Liabilities Fair Value			Derivative Assets Fair Value			Derivative Liabilities Fair Value
Gross amounts recognized	$	13,463		$	(12,348	)	$	17,149		$	(18,133	)
Less: Amounts offset in the Consolidated Statements of    Financial Condition		—			—			—			—
Net amount presented in the Consolidated Statements of    Financial Condition	$	13,463		$	(12,348	)	$	17,149		$	(18,133	)
Gross amounts not offset in the Consolidated Statements of    Financial Condition
Offsetting derivative positions		(1,814	)		1,814			—			—
Collateral posted		(11,649	)		9,740			(17,149	)		18,133
Net credit exposure	$	—		$	(794	)	$	—		$	—

As of September 30, 2021, the fair value of derivatives in a net liability position, which includes accrued interest but excludes any adjustment for nonperformance risk, related to these agreements was $12.3 million. The Company has posted $9.7 million collateral related to these agreements as of September 30, 2021. If the Company had breached any of these provisions at September 30, 2021, it could have been required to settle its obligations under the agreements at their termination value less offsetting positions of $1.8 million. For purposes of this disclosure, the amount of posted collateral by the Company and counterparties is limited to the amount offsetting the derivative asset and derivative liability.

37

BYLINE BANCORP, INC. AND SUBSIDIARIES

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(Table dollars in thousands, except share and per share data) (Unaudited)

Note 17 – Share-Based Compensation

In June 2017, the Company adopted the 2017 Omnibus Incentive Compensation Plan (the “Omnibus Plan”) in connection with our IPO. The Omnibus Plan provides for the grant of stock options, stock appreciation rights, restricted stock, restricted stock units, dividend equivalent rights and other equity-based, equity-related or cash-based awards. A total of 1,550,000 shares of our common stock have been reserved for issuance under the Omnibus Plan. As of September 30, 2021, there were 698,331 shares available for future grants under the Omnibus Plan.

The Company primarily grants time-based restricted share awards that vest over a one to four year period, subject to continued employment. The Company also grants performance-based restricted share awards. The number of shares which may be earned under the award is dependent upon the Company’s return on average assets, weighted equally, over a three-year period, measured against a peer group consisting of publicly-traded bank holding companies. Results will be measured cumulatively at the end of the three years. Any earned shares will vest on the third anniversary of the grant date.

During 2021, the Company granted 308,452 shares of restricted common stock, par value $0.01 per share. Of this total, 119,344 restricted shares will vest ratably over four years on each anniversary of the grant date, 109,475 restricted shares will vest ratably on the last business day of 2021, 2022 and 2023, 38,279 restricted shares will vest ratably over three years on each anniversary of the grant date, 9,141 restricted shares will cliff vest on the third anniversary of the grant date, and 130 shares have vested, all subject to continued employment.

In addition, 32,083 performance-based restricted shares were included in the February 2021 grant. The number of shares which may be earned under the award is dependent upon the Company’s return on average assets, weighted equally, over a three-year period ending December 31, 2023, measured against a peer group consisting of publicly-traded bank holding companies. Results will be measured cumulatively at the end of the three years. Any earned shares will vest on the third anniversary of the grant date.

The following table discloses the changes in restricted shares for the nine months ended September 30, 2021:

	Omnibus Plan
	Number of Shares			Weighted Average Grant Date Fair Value
Beginning balance, January 1, 2021		383,539		$	18.75
Granted		308,452			19.38
Vested		(103,187	)		19.52
Forfeited		(9,740	)		20.58
Ending balance outstanding at September 30, 2021		579,064		$	18.92

A total of 103,187 restricted shares vested during the nine months ended September 30, 2021. A total of 113,264 restricted shares vested during the year ended December 31, 2020. The fair value of restricted shares that vested during the nine months ended September 30, 2021 was $2.2 million. The fair value of restricted shares that vested during the year ended December 31, 2020 was $1.4 million.

The Company recognizes share-based compensation based on the estimated fair value of the restricted stock at the grant date. Share-based compensation expense is included in non-interest expense in the Consolidated Statements of Operations.

38

BYLINE BANCORP, INC. AND SUBSIDIARIES

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(Table dollars in thousands, except share and per share data) (Unaudited)

The following table summarizes restricted stock compensation expense for the nine months ended September 30, 2021 and 2020:

	Nine Months Ended September 30,
	2021		2020
Total share-based compensation - restricted stock	$	2,966	$	2,019
Income tax benefit		826		562
Unrecognized compensation expense		7,840		5,566
Weighted-average amortization period remaining	2.4 years		2.4 years

The fair value of the unvested restricted stock awards at September 30, 2021 was $14.2 million.

In October 2014, the Company adopted the Byline Bancorp, Inc. Equity Incentive Plan (“BYB Plan”). The maximum number of shares available for grants under this plan was 2,476,122 shares. During 2016 and 2015, the Company granted options to purchase 212,400 and 1,634,568 shares, respectively; the Company did not grant any stock options during 2017. In June 2017, the Board of Directors terminated the BYB Plan and no future grants can be made under this plan. Options to purchase a total of 1,344,548 shares remain outstanding under the BYB Plan at September 30, 2021.

The types of stock options granted under the BYB Plan were Time Options and Performance Options. The exercise price of each option is equal to the fair value of the stock as of the date of grant. These option awards have vesting periods ranging from one to five years and have 10-year contractual terms. Stock volatility was computed as the average of the volatilities of peer group companies. All outstanding stock options were fully vested and exercisable at September 30, 2021.

The fair values of the stock options were determined using the Black-Scholes-Merton model for Time Options and a Monte Carlo simulation model for Performance Options.

The following table discloses the activity in shares subject to options and the weighted average exercise prices, in actual dollars, for the nine months ended September 30, 2021:

	BYB Plan
	Number of Shares			Weighted Average Exercise Price		Intrinsic Value		Weighted Average Remaining Contractual Term (in Years)
Beginning balance, January 1, 2021		1,390,579		$	11.36	$	5,724		4.4
Exercised		(46,031	)		13.66	$	359
Expired		—
Ending balance outstanding at September 30, 2021		1,344,548		$	11.28	$	17,851		3.7
Exercisable at September 30, 2021		1,344,548		$	11.28	$	17,851		3.7

A total of 46,031 stock options were exercised during the nine months ended September 30, 2021, proceeds of which were $629,000, with a related tax benefit of $100,000. A total of 19,496 stock options were exercised during the year ended December 31, 2020. During the year ended December 31, 2020, with proceeds of $253,000 and a related tax benefit of $39,000. No stock options vested during the three or nine months ended September 30, 2021.

39

BYLINE BANCORP, INC. AND SUBSIDIARIES

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(Table dollars in thousands, except share and per share data) (Unaudited)

The Company recognizes share-based compensation based on the estimated fair value of the option at the grant date. Forfeitures are estimated based upon industry standards. Share-based compensation expense is included in non-interest expense in the Consolidated Statements of Operations. The following table summarizes stock option compensation expense for the nine months ended September 30, 2021 and 2020:

	Nine Months Ended September 30,
	2021		2020
Total share-based compensation - stock options	$	—	$	7
Income tax benefit		—		2
Unrecognized compensation expense - stock options		—		—
Weighted-average amortization period remaining	0.0 years		0.0 years

There was no unrecognized stock option compensation expenses as of September 30, 2021.

Pursuant to the terms of the Merger Agreement, upon the Effective Time, each outstanding First Evanston Option held by a participant in the First Evanston Bancorp, Inc. Stock Incentive Plan (the “FEB Plan”) ceased to represent a right to acquire shares of First Evanston common stock and was assumed and converted automatically into a fully vested and exercisable adjusted option to purchase shares of Byline common stock (each an “Adjusted Option”). In accordance with the Merger Agreement, the number of shares of Byline common stock to which each such Adjusted Option relates is equal to the product (rounded down to the nearest whole share of Byline common stock) of: (a) the number of shares of First Evanston common stock subject to the First Evanston Option immediately prior to May 31, 2018, multiplied by (ii) 4.725. Each Adjusted Option has an exercise price per share of Byline common stock equal to the quotient (rounded up to the nearest whole cent) of (x) the per share exercise price of such First Evanston Option immediately prior to May 31, 2018, divided by (y) 4.725. The description of the conversion process is based on, and qualified by, the Merger Agreement.

The following table discloses the activity in shares subject to options under the FEB Plan and the weighted average exercise prices, in actual dollars, for the nine months ended September 30, 2021:

	FEB Plan
	Number of Shares			Weighted Average Exercise Price		Intrinsic Value		Weighted Average Remaining Contractual Term (in Years)
Beginning balance, January 1, 2021		233,630		$	11.52	$	918		3.3
Exercised		(46,774	)	$	11.55	$	313
Expired		—
Ending balance outstanding at September 30, 2021		186,856		$	11.52	$	2,437		3.3
Exercisable at September 30, 2021		186,856		$	11.52	$	2,437		3.3

A total of 46,774 stock options were exercised during the nine months ended September 30, 2021, proceeds of which were $540,000 and a related tax benefit of $87,000. A total of 255,615 stock options were exercised during the year ended December 31, 2020, proceeds of which were $2.8 million and a related tax benefit of $219,000. No stock options vested during the three or nine months ended September 30, 2021.

40

BYLINE BANCORP, INC. AND SUBSIDIARIES

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(Table dollars in thousands, except share and per share data) (Unaudited)

Note 18—Earnings per Share

A reconciliation of the numerators and denominators for earnings per common share computations is presented below. Incremental shares represent outstanding stock options for which the exercise price is less than the average market price of the Company’s common stock during the periods presented. Options to purchase 1,531,404 and 1,676,371 shares of common stock were outstanding as of September 30, 2021 and 2020, respectively. There were 579,064 and 392,439 restricted stock awards outstanding at September 30, 2021 and 2020, respectively. For the three and nine months ended September 30, 2021, no stock options outstanding were excluded from the calculation of diluted earnings per common share. For the three and nine months ended September 30, 2020, 105,657 and 50,000 stock options outstanding were excluded from the calculation of diluted earnings per common share, as their effect would have been anti-dilutive.

The following represent the calculation of basic and diluted earnings per share for the periods presented:

	Three Months Ended September 30,				Nine Months Ended September 30,
	2021		2020		2021		2020
Net income	$	25,306	$	13,071	$	75,596	$	25,176
Less: Dividends on preferred shares		196		196		587		587
Net income available to common stockholders	$	25,110	$	12,875	$	75,009	$	24,589
Weighted-average common stock outstanding:
Weighted-average common stock outstanding (basic)		37,200,778		38,057,350		37,773,350		37,973,694
Incremental shares		817,523		191,985		749,762		278,269
Weighted-average common stock outstanding (dilutive)		38,018,301		38,249,335		38,523,112		38,251,963
Basic earnings per common share	$	0.68	$	0.34	$	1.99	$	0.65
Diluted earnings per common share	$	0.66	$	0.34	$	1.95	$	0.64

Note 19—Stockholders’ Equity

A summary of the Company’s preferred and common stock at September 30, 2021 and December 31, 2020 is as follows:

	September 30,		December 31,
	2021		2020
Series B 7.5% fixed to floating non-cumulative    perpetual preferred stock
Par value	$	0.01	$	0.01
Shares authorized		50,000		50,000
Shares issued		10,438		10,438
Shares outstanding		10,438		10,438
Common stock, voting
Par value	$	0.01	$	0.01
Shares authorized		150,000,000		150,000,000
Shares issued		39,170,541		38,736,540
Shares outstanding		37,690,087		38,618,054
Treasury shares		1,480,454		118,486

During 2016, the Company authorized and issued Series B 7.50% fixed-to-floating non-voting, noncumulative perpetual preferred stock with a liquidation preference of $1,000 per share, plus the amount of unpaid dividends, if any, which is redeemable at the Company’s option on or after March 31, 2022. Holders of Series B Preferred Stock do not have any rights to convert such stock into shares of any other class of capital stock of the Company. Holders of Series B Preferred Stock are entitled to receive a fixed dividend of 7.50% per annum from the original issue date through December 30, 2021, after which the dividend is paid at a floating rate of three-month LIBOR plus 5.41% per annum.

41

BYLINE BANCORP, INC. AND SUBSIDIARIES

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(Table dollars in thousands, except share and per share data) (Unaudited)

The Company Series B Preferred Stock is included in Tier 1 capital for regulatory capital purposes and is redeemable at the option of the Company at a redemption price of $1,000 per share, plus any declared and unpaid dividends (i) in whole or part on any dividend payment date on or after March 31, 2022, and (ii) in whole but not in part prior to March 31, 2022, within 90 days following a regulatory event, as defined in the Certificate of Designations of the Company Series B Preferred Stock. The Company must receive approval of the Federal Reserve Board prior to any redemption of the Company Series B Preferred Stock.

For the three months ended September 30, 2021 and 2020, the Company declared and paid dividends on the Series B preferred stock of $196,000. For the nine months ended September 30, 2021 and 2020, the Company declared and paid dividends on the Series B preferred stock of $587,000.

On December 10, 2020, the Company announced that its Board of Directors approved a stock repurchase program authorizing the purchase of up to an aggregate of 1,250,000 shares of the Company’s outstanding common stock, and on July 27, 2021, the Company's Board of Directors authorized an expansion of its current stock repurchase program. Under the extended program, the Company is authorized to repurchase an additional 1,250,000 shares of the Company's outstanding common stock. The shares may, at the discretion of management, be repurchased from time to time in open market purchases as market conditions warrant or in privately negotiated transactions. The Company is not obligated to purchase any shares under the program, and the program may be discontinued at any time. The actual timing, number and share price of shares purchased under the repurchase program will be determined by the Company at its discretion and will depend on a number of factors, including the market price of the Company’s stock, general market and economic conditions and applicable legal requirements. The shares authorized to be repurchased represent approximately 3.0% of the Company’s outstanding common stock at September 30, 2021. The program will be in effect until December 31, 2022 unless terminated earlier.

The Company purchased 460,220 shares at a cost of $10.4 million under this program during the three months ended September 30, 2021. The Company purchased 1,331,708 shares at a cost of $28.9 million under this program during the nine months ended September 30, 2021. Repurchased shares are recorded as treasury shares on the trade date using the treasury stock method, and the cash paid is recorded as treasury stock. Treasury stock acquired is recorded at cost and is carried as a reduction of stockholders’ equity in the Consolidated Statement of Financial Condition.

For the three and nine months ended September 30, 2021, cash dividends were declared and paid to stockholders of record of the Company's common stock of $0.09 per share and $0.21 per share, respectively. For the three and nine months ended September 30, 2020, cash dividends were declared and paid to stockholders of record of the Company's common stock of $0.03 per share and $0.09 per share, respectively.

On October 26, 2021, the Company’s Board of Directors declared a cash dividend of $0.09 per share payable on November 23, 2021 to stockholders of record of the Company’s common stock as of November 9, 2021.

Note 20—Consolidated Statements of Changes in Accumulated Other Comprehensive Income (Loss)

The following table summarizes the changes in accumulated other comprehensive income (loss) for the nine months ended September 30, 2021 and 2020:

(dollars in thousands)	Unrealized Gains (Losses) on Cash Flow Hedges			Unrealized Gains (Losses) on Available-for -Sale Securities			Total Accumulated Other Comprehensive Income (Loss)
Balance, January 1, 2020	$	(366	)	$	(334	)	$	(700	)
Other comprehensive income, net of tax		46			19,978			20,024
Balance, September 30, 2020	$	(320	)	$	19,644		$	19,324
Balance, January 1, 2021	$	(305	)	$	18,352		$	18,047
Other comprehensive income (loss), net of tax		1,211			(24,772	)		(23,561	)
Balance, September 30, 2021	$	906		$	(6,420	)	$	(5,514	)

42

Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations

The following is a discussion and analysis of Byline Bancorp, Inc.’s financial condition and results of operations and should be read in conjunction with our Unaudited Interim Condensed Consolidated Financial Statements and notes thereto included elsewhere in this report. The words “the Company,” “we,” “Byline,” “management,” “our” and “us” refer to Byline Bancorp, Inc. and its consolidated subsidiaries, unless we indicate otherwise. In addition to historical information, this discussion contains forward looking statements that involve risks, uncertainties and assumptions that could cause actual results to differ materially from management’s expectations. Factors that could cause such differences are discussed in the sections entitled “Special Note Regarding Forward Looking Statements” and “Risk Factors”. Byline assumes no obligation to update any of these forward looking statements.

Forward-Looking Statements

Statements contained in this report and in other documents we file with or furnish to the Securities and Exchange Commission (“SEC”) that are not historical facts may constitute “forward-looking statements” within the meaning of the U.S. Private Securities Litigation Reform Act of 1995. Any statements about our expectations, beliefs, plans, strategies, predictions, forecasts, objectives or assumptions of future events or performance are not historical facts and may be forward-looking. These statements are often, but not always, made through the use of words or phrases such as “anticipates,” “believes,” “expects,” “can,” “could,” “may,” “predicts,” “potential,” “opportunity,” “should,” “will,” “estimate,” “plans,” “projects,” “continuing,” “ongoing,” “expects,” “seeks,” “intends” and similar words or phrases. Accordingly, these statements involve estimates, known and unknown risks, assumptions and uncertainties that could cause actual strategies, actions or results to differ materially from those expressed in such statements, and are not guarantees of future results or other events or performance. Because forward-looking statements are necessarily only estimates of future strategies, actions or results, based on management’s current expectations, assumptions and estimates on the date hereof, and there can be no assurance that actual strategies, actions or results will not differ materially from expectations, readers are cautioned not to place undue reliance on such statements.

Our ability to predict results or the actual effects of future plans, strategies or events is inherently uncertain. Factors which could cause actual results or conditions to differ materially from those reflected in forward-looking statements include:

the current and potential disruption to and impact on our business, capital, employees, financial condition, liquidity, operations, prospects and results of operations, including a decrease in revenue and an increase in expenses, as well as the trading price of our common stock as a result of the economic and other consequences, including the severity and duration, of the COVID-19 pandemic;

uncertainty regarding domestic and geopolitical developments and the United States and global economic outlook that may impact market conditions or affect demand for certain banking products and services, including as a result of the disruption of global, national, state and local economies associated with the COVID-19 pandemic, as well as federal, state and local government responses thereto, and the impact on our customers, which could impair the ability of our borrowers to repay outstanding loans and leases, impair collateral values and further increase our allowance for loan and lease losses, as well as result in possible asset impairment charges;

unforeseen credit quality problems or changing economic conditions that could result in charge-offs greater than we have anticipated in our allowance for loan and lease losses or changes in the value of our investments;

commercial real estate market conditions in the Chicago metropolitan area and southern Wisconsin;

deterioration in the financial condition of our borrowers resulting in significant increases in our loan and lease losses and provisions for those losses and other related adverse impacts to our results of operations and financial condition, including as a result of the COVID-19 pandemic;

estimates of fair value of certain of our assets and liabilities, which could change in value significantly from period to period;

competitive pressures in the financial services industry relating to both pricing and loan and lease structures, which may impact our growth rate;

unanticipated developments in pending or prospective loan and/or lease transactions or greater-than-expected pay downs or payoffs of existing loans and leases;

inaccurate information and assumptions in our analytical and forecasting models used to manage our balance sheet;

unanticipated changes in monetary policies of the Federal Reserve or significant adjustments in the pace of, or market expectations for, future interest rate changes, including changes in response to the COVID-19 pandemic or otherwise;

availability of sufficient and cost-effective sources of liquidity, funding, and capital as and when needed;

our ability to attract, retain or the loss of key personnel or an inability to recruit appropriate talent cost-effectively;

adverse effects on our information technology systems resulting from failures, human error or cyberattack, including the potential impact of disruptions or security breaches at our third-party service providers, any of which could result in an information or security breach, the disclosure or misuse of confidential or proprietary information, significant legal and financial losses and reputational harm;

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greater-than-anticipated costs to support the growth of our business, including investments in new lines of business, products and services, or technology, process improvements or other infrastructure enhancements, or greater-than-anticipated compliance or regulatory costs and burdens;

the impact of possible future acquisitions, if any, including the costs and burdens of integration efforts;

the ability of the Company to receive dividends from Byline Bank;

legislative or regulatory changes, particularly changes in regulation of financial services companies and/or the products and services offered by financial services companies, including those changes that are in response to the COVID-19 pandemic, including without limitation the CARES Act and the rules and regulations that have been and may be promulgated thereunder;

changes in Small Business Administration (“SBA”) and U.S. Department of Agriculture (“USDA”) U.S. government guaranteed lending rules, regulations, loan and lease products and funding limits, including specifically the SBA Section 7(a) program, including as a result of the COVID-19 pandemic, as well as, changes in SBA or USDA standard operating procedures or changes to the status of Byline Bank as an SBA Preferred Lender;

changes in accounting principles, policies and guidelines applicable to bank holding companies and banking generally;

the impact of a possible change in the federal or state income tax rate on our deferred tax assets and provision for income tax expense;

our ability to implement our growth strategy, including via acquisitions;

the possibility that any of the anticipated benefits of acquisitions will not be realized or will not be realized within the expected time period;

the risk that the integration of acquisition operations will be materially delayed or will be more costly or difficult than expected;

the effect of mergers on customer relationships and operating results; and

other risks detailed from time to time in filings we make with the SEC.

These risks and uncertainties should be considered in evaluating any forward-looking statements, and undue reliance should not be placed on such statements. Forward looking statements speak only as of the date they are made. You should also consider the risks, assumptions and uncertainties set forth in the “Risk Factors” section of this Form 10-Q, in our Annual Report on Form 10-K for the year ended December 31, 2020, that was filed with the SEC on March 4, 2021, as well as those set forth in the reports we file with the SEC. We assume no obligation to update any of these statements in light of new information, future events or otherwise unless required under the federal securities laws.

Overview

Our business

We are a bank holding company headquartered in Chicago, Illinois and conduct all our business activities through our subsidiary, Byline Bank, a full service commercial bank, and Byline Bank’s subsidiaries. Through Byline Bank, we offer a broad range of banking products and services to small and medium sized businesses, commercial real estate and financial sponsors and to consumers who generally live or work near our branches. We also provide trust and wealth management services to our customers. In addition to our traditional commercial banking business, we provide small ticket equipment leasing solutions through Byline Financial Group, a wholly-owned subsidiary of Byline Bank, headquartered in Bannockburn, Illinois, with sales offices in Illinois, and sales representatives in Illinois, Florida, Michigan, New Jersey, and New York. We also participate in U.S. government guaranteed lending programs and originate U.S. government guaranteed loans. Byline Bank was the fifth most active originator of Small Business Administration (“SBA”) loans in the country and the most active SBA lender in Illinois and Wisconsin, as reported by the SBA for the quarter ended September 30, 2021. During the third quarter of 2021 we began offering online account opening to consumer customers through our website. As of September 30, 2021, we had consolidated total assets of $6.7 billion, total gross loans and leases outstanding of $4.6 billion, total deposits of $5.2 billion, and total stockholders’ equity of $824.4 million.

Response to COVID-19 Pandemic

The coronavirus (“COVID-19”) pandemic has caused health and economic concerns in the United States and globally. In response to this economic disruption, federal and state governments enacted laws intending to stimulate the economy during this time, including the $2.0 trillion Coronavirus Relief and Economic Security Act (the “CARES Act”), from which the PPP under the SBA was created. PPP loans

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originated before June 5, 2020 have a two-year term and bear an interest rate of 1.0%, however borrowers can request an extension to five years. PPP loans originated after June 5, 2020 have a five-year term and bear an interest rate of 1.0%.

The following table presents net PPP loans as of September 30, 2021:

	PPP Loan Size
(dollars in thousands)	First Round			Second Round			Total
Principal outstanding	$	12,561		$	263,058		$	275,619
Unearned processing fee		(176	)		(9,503	)		(9,679	)
Deferred cost		47			2,094			2,141
PPP loans, net	$	12,432		$	255,649		$	268,081
Number of loans outstanding	$	128		$	1,624		$	1,752
Forgiven		95.9	%		22.3	%		70.7	%
In review or submission process		0.9	%		10.9	%		4.3	%
Not applied for forgiveness		3.2	%		66.8	%		25.0	%

The CARES Act also temporarily eases the guidance applicable to loan modifications and the effect on assessing TDRs related to the COVID-19 pandemic. Modifications within the scope of this relief include arrangements that defer or delay payments of principal and/or interest and extend until the earlier of the following: 1) 60 days after the date on which the national emergency related to the COVID-19 outbreak is terminated; or 2) January 1, 2022. At September 30, 2021, we had $2.0 million in active COVID-19 related payment deferrals, or 0.05% of loans and leases, excluding PPP loans.

Critical Accounting Policies and Significant Estimates

Our accounting and reporting policies conform to accounting principles generally accepted in the United States (“GAAP”) and to general practices within the Banking industry. To prepare financial statements and interim financial statements in conformity with GAAP, management makes estimates, assumptions and judgments based on available information. These estimates, assumptions and judgments affect the amounts reported in the financial statements and accompanying notes; and are based on information available as of the date of the financial statements. As this information changes, actual results could differ from the estimates, assumptions and judgments reflected in the financial statements. In particular, management has identified several accounting policies that, due to the estimates, assumptions and judgements inherent in those policies, are critical in understanding our financial statements.

These critical accounting policies and estimates include (i) acquisition‑related fair value computations, (ii) the carrying value of loans and leases, (iii) determining the provision and allowance for loan and lease losses, (iv) the valuation of intangible assets such as goodwill, servicing assets and core deposit intangibles, (v) the determination of fair value for financial instruments, including other-than-temporary-impairment losses, (vi) the valuation of real estate held for sale, and (vii) the valuation of or recognition of deferred tax assets and liabilities. An increase was made to the provision for loan and lease losses as a result of increases in qualitative factors relative to the COVID-19 pandemic.

The Jumpstart Our Business Startups Act of 2012, or the JOBS Act, permits us an extended transition period for complying with new or revised accounting standards affecting public companies. We have elected to take advantage of this extended transition period, which means that the financial statements included in this report, as well as any financial statements that we file in the future, will not be subject to all new or revised accounting standards generally applicable to public companies for the transition period for so long as we remain an emerging growth company or until we affirmatively and irrevocably opt out of the extended transition period provided for under the JOBS Act.

The following is a discussion of the critical accounting policies and significant estimates that require us to make complex and subjective judgments. Additional information about these policies can be found in Note 1 of our audited Consolidated Financial Statements included in our Annual Report on Form 10-K for the year ended December 31, 2020, that we filed with the Securities and Exchange Commission (“SEC”) on March 4, 2021.

Business Combinations

We account for business combinations under the acquisition method of accounting in accordance with ASC 805. We recognize the fair value of the assets acquired and liabilities assumed as of the date of acquisition, with any excess of the fair value of consideration provided over the fair value of the identifiable net tangible and intangible assets acquired recorded as goodwill. Transaction costs are expensed as incurred. Application of the acquisition method requires extensive use of accounting estimates and judgements to determine the fair values of the identifiable assets acquired and liabilities assumed at the acquisition date.

In accordance with ASC 805, the acquiring company retains the right to make appropriate adjustments to the assets and liabilities of the acquired entity for information obtained during the measurement period about facts and circumstances that existed as of the acquisition date. The measurement period ends as of the earlier of (i) one year from the acquisition date or (ii) the date when the acquirer receives the information necessary to complete the business combination accounting.

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Carrying Value of Loans and Leases

Our accounting methods for loans and leases differ depending on whether they are new or acquired loans and leases; and for acquired loans, whether the loans were acquired at a discount as a result of credit deterioration since the date of origination.

Originated Loans and Leases

We account for originated loans and leases and purchased loans and leases not acquired through business combinations as originated loans and leases. The new loans that management has the intent and ability to hold for the foreseeable future are reported at their outstanding principal balances net of any allowance for loan and lease losses, unamortized deferred fees and costs and unamortized premiums or discounts. The net amount of non-refundable loan origination fees and certain direct costs associated with the lending process are deferred and amortized to interest income over the contractual lives of the new loans using methods that approximate the level yield method. Discounts and premiums are amortized or accreted to interest income over the estimated term of the new loans using methods that approximate the effective yield method. Interest income on new loans is accrued based on the unpaid principal balance outstanding. Additionally, once an acquired non-impaired loan reaches its contractual maturity date, it is re-underwritten, and if renewed, it is classified as an originated loan.

Acquired Loans and Leases

Acquired loans and leases are recorded at fair value as of the acquisition date. Credit discounts are included in the determination of fair value; therefore, an allowance for loan and lease losses is not recorded at the acquisition date. Acquired loans are evaluated upon acquisition and classified as either acquired impaired or acquired non‑impaired. Acquired impaired loans reflect evidence of credit deterioration since origination for which it is probable that all contractually required principal and interest will not be collected by us. Subsequent to acquisition, we periodically update for changes in cash flow expectations, which are reflected in interest income over the life of the loan as accretable yield. Any subsequent decreases in expected cash flow attributable to credit deterioration are recognized by recording a provision for loan losses.

For acquired non‑impaired loans and leases, the excess or deficit of the loan and lease principal balance over the fair value is recorded as a discount or premium at acquisition and is accreted through interest income over the life of the loan or lease. Subsequent to acquisition, these loans and leases are evaluated for credit deterioration and a provision for loan and lease losses would be recorded when probable loss is incurred. These loans and leases are evaluated for impairment consistent with originated loans and leases.

Provision and Allowance for Loan and Lease Losses

The provision for loan and lease losses reflects the amount required to maintain the allowance for loan and lease losses (“ALLL”) at an appropriate level based upon management’s evaluation of the adequacy of general and specific loss reserves.

The ALLL is maintained at a level that management believes is appropriate to provide for known and inherent incurred loan and lease losses as of the dates of the Consolidated Statements of Financial Condition, and we have established methodologies for the determination of its adequacy. The methodologies are set forth in a formal policy and take into consideration the need for an overall general valuation allowance as well as specific allowances that are determined on an individual loan basis. We increase our ALLL by charging provisions for probable losses against our income and decreased by charge‑offs, net of recoveries.

The evaluation is inherently subjective, as it requires estimates that are susceptible to significant revision as more information becomes available. While management uses available information to recognize losses on loans and leases, changes in economic or other conditions may necessitate revision of the estimate in future periods.

The ALLL is maintained at a level management believes is sufficient to provide for probable losses based upon an ongoing review of the originated and acquired non‑impaired loan and lease portfolios by portfolio category, which include consideration of actual loss experience, peer loss experience, changes in the size and risk profile of the portfolio, identification of individual problem loan and lease situations which may affect a borrower’s ability to repay, and evaluation of prevailing economic conditions.

For acquired impaired loans, a specific valuation allowance is established when it is probable that we will be unable to collect all of the cash flows expected at acquisition, plus the additional cash flows expected to be collected arising from changes in estimates after acquisition.

The originated and non‑impaired acquired loans have limited delinquency and credit loss history and have not yet exhibited an observable loss trend. The credit quality of loans in these loan portfolios are impacted by delinquency status and debt service coverage generated by the borrowers’ businesses and fluctuations in the value of real estate collateral.

Acquired non‑impaired loans and originated loans are considered impaired when, based on current information and events, it is probable that we will be unable to collect the scheduled payments of principal or interest when due, according to the contractual terms of the loan agreements. All acquired non‑impaired loans and originated loans of $100,000 or greater with an internal risk rating of substandard or below and on non-accrual, as well as loans classified as troubled debt restructurings (“TDR”), are reviewed individually for impairment on a quarterly basis.

In March 2020, CARES Act was signed into law. Section 4013 of the CARES Act temporarily eases the guidance applicable to loan modifications and the effect on assessing TDRs related to the COVID-19 pandemic. Modifications within the scope of this relief include

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arrangements that defer or delay payments of principal or interest and extend until the earlier of the following: 1) 60 days after the date on which the national emergency related to the COVID-19 outbreak is terminated; or 2) January 1, 2022.

Goodwill and Other Intangible Assets

Goodwill. Goodwill represents the excess of the purchase consideration over the fair value of net assets acquired in connection with our recapitalization and acquisitions using the acquisition method of accounting. Goodwill is not amortized but is periodically evaluated for impairment under the provisions of ASC Topic 350, Intangibles—Goodwill and Other (“ASC 350”).

Impairment testing is performed using either a qualitative or quantitative approach at the reporting unit level. Our goodwill is allocated to Byline Bank, which is our only applicable reporting unit for the purposes of testing goodwill for impairment. We have selected November 30 as the date to perform the annual goodwill impairment test. Additionally, we perform a goodwill impairment evaluation on an interim basis when events or circumstances indicate impairment potentially exists.

Servicing Assets. Servicing assets are recognized separately when they are acquired through sales of loans or when the rights to service loans are purchased. When loans are sold with servicing rights retained, servicing assets are recorded at fair value in accordance with ASC Topic 860, Transfers and Servicing (“ASC 860”). Fair value is based on market prices for comparable servicing contracts, when available, or alternatively, is based on a valuation model that calculates the present value of estimated future net servicing income. The fair value of servicing rights is highly sensitive to changes in underlying assumptions. Changes in secondary market premiums and prepayment speed assumptions have the most significant impact on the fair value of servicing rights. See Note 6 and Note 15 of our Unaudited Interim Condensed Consolidated Financial Statements as of September 30, 2021, included in this report, for additional information.

Core Deposit Intangible Assets. Other intangible assets primarily consist of core deposit intangible assets. In valuing core deposit intangibles, we consider variables such as deposit servicing costs, attrition rates and market discount rates. Core deposit intangibles are reviewed annually, or more frequently when events or changes in circumstances occur that indicate that their carrying values may not be recoverable. If the recoverable amount of the core deposit intangibles is determined to be less than its carrying value, we would then measure the amount of impairment based on an estimate of the fair value at that time. We also evaluate whether the events or circumstances have occurred that warrant a revision to the remaining useful lives of intangible assets. In cases where a revision is deemed appropriate, the remaining carrying amounts of the intangible assets are amortized over the revised remaining useful life. Core deposit intangibles are currently amortized over an approximate ten-year period.

Customer Relationship Intangible. Other intangible assets also include our customer relationship intangible asset. In valuing our customer relationship intangibles, we consider variables such as assets under management, attrition rates, and fee structure. Customer relationship intangibles are currently amortized over a 12-year period.

Fair value of Financial Instruments

ASC Topic 820, Fair Value Measurement defines fair value as the price that would be received to sell a financial asset or paid to transfer a financial liability in an orderly transaction between market participants at the measurement date.

The degree of management judgment involved in determining the fair value of assets and liabilities is dependent upon the availability of quoted market prices or observable market parameters. For financial instruments that trade actively and have quoted market prices or observable market parameters, there is minimal subjectivity involved in measuring fair value. When observable market prices and parameters are not available, management judgment is necessary to estimate fair value. In addition, changes in market conditions may reduce the availability of quoted prices or observable data. For example, reduced liquidity in the capital markets or changes in secondary market activities could result in observable market inputs becoming unavailable. Therefore, when market data is not available, we would use valuation techniques requiring more management judgment to estimate the appropriate fair value measurement.

See Note 15 of our Unaudited Interim Condensed Consolidated Financial Statements as of September 30, 2021, included in this report, for a complete discussion of our use of fair value of financial assets and liabilities and their related measurement practices.

Valuation of Real Estate Held for Sale

Other Real Estate Owned (“OREO”). OREO includes real estate assets that have been acquired through, or in lieu of, loan foreclosure or repossession and are to be sold. OREO assets are initially recorded at fair value, less estimated costs to sell, of the collateral of the loan, on the date of foreclosure or repossession, establishing a new cost basis. Adjustments that reduce loan balances to fair value at the time of foreclosure or repossession are recognized as charge‑offs in the allowance for loan and lease losses. Positive adjustments, if any, at the time of foreclosure or repossession are recognized in non‑interest expense. After foreclosure or repossession, management periodically obtains new valuations and real estate or other assets may be adjusted to a lower carrying amount, determined by the fair value of the asset, less estimated costs to sell. Any subsequent write‑downs are recorded as a decrease in the asset and charged against other real estate owned valuation adjustments, included within non-interest expense. Operating expenses of such properties, net of related income, are included in non‑interest expense, and gains and losses on their disposition are included in non‑interest expense. Gains on internally financed other real estate owned sales are accounted for in accordance with the methods stated in ASC Topic 360‑20, Real Estate Sales (“ASC 360‑20”). Any losses on the sales of other real estate owned properties are recognized immediately.

Assets Held for Sale. Assets held for sale consist of former branch locations and real estate purchased for expansion. Assets are considered held for sale when management has approved a plan to sell the assets following a branch closure or other events. The properties are being actively marketed and transferred to assets held for sale based at the lower of its carrying value or its fair value, less estimated costs

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to sell. Adjustments to reduce the asset balances to fair value are recorded at the time of transfer and are recognized through a charge against income. An assessment of the recoverability of other long-lived assets associated with all branches is periodically performed, resulting in impairment losses which are reflected in other non-interest expense.

Income Taxes

We use the asset and liability method to account for income taxes. The objective of the asset and liability method is to establish deferred tax assets and liabilities for the temporary differences between the financial reporting basis and the income tax basis of our assets and liabilities at enacted tax rates expected to be in effect when such amounts are realized or settled. Our annual tax rate is based on our income, statutory tax rates and available tax planning opportunities. Tax laws are complex and subject to different interpretations by the taxpayer and respective governmental taxing authorities. Significant judgment is required in determining tax expense and in evaluating tax positions, including evaluating uncertainties.

Deferred income tax assets represent amounts available to reduce income taxes payable on taxable income in future years. Such assets arise because of temporary differences between the financial reporting and tax bases of assets and liabilities, as well as from net operating loss carryforwards. We review our deferred tax positions quarterly for changes which may impact realizability. We evaluate the recoverability of these future tax deductions by assessing the adequacy of future expected taxable income from all sources, including reversal of taxable temporary differences, forecasted operating earnings and available tax planning strategies. We use short and long‑range business forecasts to provide additional information for its evaluation of the recoverability of deferred tax assets. It is our policy to recognize interest and penalties associated with uncertain tax positions, if applicable, as components of non‑interest expense.

A deferred tax valuation allowance is established to reduce the net carrying amount of deferred tax assets if it is determined to be more likely than not that all or some of the deferred tax asset will not be realized. See Note 11 of the notes to our Consolidated Financial Statements included in our Annual Report on Form 10-K for the year ended December 31, 2020, for further information on income taxes.

Recently Issued Accounting Pronouncements

Refer to Note 2 of our Unaudited Interim Condensed Consolidated Financial Statements as of September 30, 2021, included in this report, for a description of recent accounting pronouncements, including the effective dates of adoption and anticipated effects on our results of operations and financial condition.

Primary Factors Used to Evaluate Our Business

As a financial institution, we manage and evaluate various aspects of both our results of operations and our financial condition. We evaluate the levels and trends of the line items included in our consolidated balance sheet and income statement as well as various financial ratios that are commonly used in our industry. We analyze these ratios and financial trends against our own historical performance, our budgeted performance and the final condition and performance of comparable financial institutions in our region. Comparison of our financial performance against other financial institutions is impacted by the accounting for acquired non‑impaired and acquired impaired loans.

These factors and metrics described in this report may not provide an appropriate basis to compare our results or financial condition to the results or financial condition of other financial services companies, given our limited operating history and strategic acquisitions since our recapitalization.

Results of Operations

Overview

Our results of operations depend substantially on net interest income, which is the difference between interest income on interest-earning assets, consisting primarily of interest income on loans and lease receivables, including accretion income on loans, investment securities and other short-term investments, and interest expense on interest-bearing liabilities, consisting primarily of deposits and borrowings. Our results of operations are also dependent upon our generation of non-interest income, consisting primarily of income from fees and service charges on deposits, loan servicing revenue, wealth management and trust income, ATM and interchange fees, and net gains on sales of investment securities and loans. Other factors contributing to our results of operations include our provisions for loan and lease losses, provision for income taxes, and non-interest expenses, such as salaries and employee benefits, occupancy and equipment expenses, and other miscellaneous operating costs.

Selected Financial Data

	As of or For the Three Months Ended				As of or For the Nine Months Ended
	September 30,				September 30,
(dollars in thousands, except share and per share data)	2021		2020		2021		2020
Summary of Operations
Net interest income	$	59,845	$	53,524	$	174,659	$	158,958
Provision for loan and lease losses		352		15,740		2,750		45,713
Non-interest income		18,495		22,234		55,239		44,370
Non-interest expense		44,180		41,687		126,003		122,401
Income before provision for income taxes		33,808		18,331		101,145		35,214
Provision for income taxes		8,502		5,260		25,549		10,038

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Net income		25,306			13,071			75,596			25,176
Dividends on preferred shares		196			196			587			587
Income available to common stockholders	$	25,110		$	12,875		$	75,009		$	24,589
Common Share Data
Basic earnings per common share	$	0.68		$	0.34		$	1.99		$	0.65
Diluted earnings per common share	$	0.66		$	0.34		$	1.95		$	0.64
Adjusted diluted earnings per share(1)(3)	$	0.69		$	0.34		$	2.02		$	0.65
Weighted-average common shares outstanding (basic)		37,200,778			38,057,350			37,773,350			37,973,694
Weighted-average common shares outstanding (diluted)		38,018,301			38,249,335			38,523,112			38,251,963
Common shares outstanding		37,690,087			38,568,916			37,690,087			38,568,916
Cash dividends per common share	$	0.09		$	0.03		$	0.21		$	0.09
Dividend payout ratio on common stock		13.64	%		8.82	%		10.77	%		14.06	%
Tangible book value per common share(1)	$	17.16		$	15.81		$	17.16		$	15.81
Key Ratios and Performance Metrics    (annualized where applicable)
Net interest margin, fully taxable equivalent (1) (5)		3.92	%		3.61	%		3.82	%		3.82	%
Average cost of deposits		0.08	%		0.22	%		0.09	%		0.43	%
Efficiency ratio(2)		54.18	%		52.46	%		52.49	%		57.38	%
Adjusted efficiency ratio(1)(2)(3)		52.35	%		52.42	%		50.76	%		57.01	%
Non-interest expense to average assets		2.67	%		2.59	%		2.54	%		2.70	%
Adjusted non-interest expense to average assets(1)(3)		2.58	%		2.59	%		2.46	%		2.68	%
Return on average stockholders' equity		12.19	%		6.57	%		12.42	%		4.33	%
Adjusted return on average stockholders' equity(1)(3)		12.69	%		6.58	%		12.90	%		4.42	%
Return on average assets		1.53	%		0.81	%		1.53	%		0.56	%
Adjusted return on average assets(1)(3)		1.59	%		0.81	%		1.58	%		0.57	%
Non-interest income to total revenues(1)		23.61	%		29.35	%		24.03	%		21.82	%
Pre-tax pre-provision return on average assets(1)		2.07	%		2.12	%		2.10	%		1.79	%
Adjusted pre-tax pre-provision return on average assets(1)		2.15	%		2.12	%		2.18	%		1.80	%
Return on average tangible common stockholders' equity(1)		16.22	%		9.39	%		16.66	%		6.51	%
Adjusted return on average tangible common   stockholders' equity(1)(3)		16.86	%		9.40	%		17.27	%		6.63	%
Non-interest-bearing deposits to total deposits		41.06	%		35.73	%		41.06	%		35.73	%
Loans and leases held for sale and loans and leases    held for investment to total deposits		90.29	%		91.96	%		90.29	%		91.96	%
Deposits to total liabilities		87.73	%		84.36	%		87.73	%		84.36	%
Deposits per branch	$	117,234		$	84,390		$	117,234		$	84,390
Asset Quality Ratios
Non-performing loans and leases to total loans and leases    held for investment		0.75	%		0.99	%		0.75	%		0.99	%
ALLL to total loans and leases held for investment		1.31	%		1.40	%		1.31	%		1.40	%
Net charge-offs to average total loans and leases held   for investment		0.13	%		0.53	%		0.32	%		0.53	%
Acquisition accounting adjustments(4)	$	6,327		$	17,133		$	6,327		$	17,133
Capital Ratios
Common equity to total assets		12.14	%		12.07	%		12.14	%		12.07	%
Tangible common equity to tangible assets(1)		9.89	%		9.64	%		9.89	%		9.64	%
Leverage ratio		11.21	%		10.93	%		11.21	%		10.93	%
Common equity tier 1 capital ratio		11.32	%		12.55	%		11.32	%		12.55	%
Tier 1 capital ratio		12.32	%		13.77	%		12.32	%		13.77	%
Total capital ratio		14.78	%		16.67	%		14.78	%		16.67	%

(1) Represents a non-GAAP financial measure. See “Reconciliations 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 on assets held for sale.

(4) Represents the remaining net unaccreted discount as a result of applying the fair value acquisition accounting 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%.

49

We reported consolidated net income of $25.3 million for the three months ended September 30, 2021 compared to net income of $13.1 million for the three months ended September 30, 2020, an increase of $12.2 million. The increase in net income was primarily attributable to a $15.4 million decrease in provision for loan and lease losses and a $6.3 million increase in net interest income. These were offset by a $3.7 million decrease in non-interest income, a $2.5 million increase in non-interest expense, and a $3.2 million increase in provision for income taxes.

The increase in net interest income during the three months ended September 30, 2021 was mainly a result of increased average loan and leases balances and decreased cost of funds. The decrease in provision for loan and lease losses reflects improving qualitative factors from the continued recovery from the COVID-19 pandemic. The decrease in non-interest income was principally driven by a downward revaluation adjustments to the servicing asset. The increase in non-interest expense was mostly due to an increase in salaries and employee benefits. The increase in provision for income taxes was driven by an increase in net income before provision for income taxes during the period.

Net income available to common stockholders was $25.1 million, or $0.68 per basic and $0.66 per diluted common share, for the three months ended September 30, 2021 compared to $12.9 million, or $0.34 per basic and diluted common share, for the three months ended September 30, 2020. Dividends on preferred shares were $196,000 for the three months ended September 30, 2021 and 2020.

Our annualized return on average assets was 1.53% for the three months ended September 30, 2021 compared to 0.81% for the three months ended September 30, 2020. Our annualized return on average stockholders’ equity was 12.19% for the three months ended September 30, 2021 compared to 6.57% for the three months ended September 30, 2020. Our efficiency ratio was 54.18% for the three months ended September 30, 2021 compared to 52.46% for the three months ended September 30, 2020.

We reported consolidated net income of $75.6 million for the nine months ended September 30, 2021 compared to net income of $25.2 million for the nine months ended September 30, 2020, an increase of $50.4 million. The increase in net income was primarily attributable to a $43.0 million decrease in provision for loan and lease losses, a $15.7 million increase in net interest income, and a $10.9 million increase in non-interest income. These increases were offset by a $3.6 million increase in non-interest expense, and a $15.5 million increase in provision for income taxes.

The increase in net interest income during the nine months ended September 30, 2021 was mainly a result of increased average loan and leases balances and decreased cost of funds. The decrease in provision for loan and lease losses reflects improving qualitative factors from the continued recovery from the COVID-19 pandemic. The increase in non-interest income was principally driven by an increase in net gains on sale of loans. The increase in non-interest expense was mostly due to an increase in salaries and employee benefits. The increase in provision for income taxes was driven by an increase in net income before provision for income taxes during the period.

Net income available to common stockholders was $75.0 million, or $1.99 per basic common share and $1.95 per diluted common share, for the nine months ended September 30, 2021 compared to $24.6 million, or $0.65 per basic and $0.64 per diluted common share, for the nine months ended September 30, 2020. Dividends on preferred shares were $587,000 for the nine months ended September 30, 2021 and 2020.

Our annualized return on average assets was 1.53% for the nine months ended September 30, 2021 compared to 0.56% for the nine months ended September 30, 2020. Our annualized return on average stockholders’ equity was 12.42% for the nine months ended September 30, 2021 compared to 4.33% for the nine months ended September 30, 2020. Our efficiency ratio was 52.49% for the nine months ended September 30, 2021 compared to 57.38% for the nine months ended September 30, 2020

Net Interest Income

Net interest income, representing interest income less interest expense, is a significant contributor to our revenues and earnings. We generate interest income from interest and dividends on interest-earning assets, which include loans, leases and investment securities we own. We incur interest expense from interest paid on interest-bearing liabilities, which include interest-bearing deposits, subordinated debt, Federal Home Loan Bank advances, Paycheck Protection Program Liquidity Facility, junior subordinated debentures and other borrowings. To evaluate net interest income, we measure and monitor (i) yields on our loans and other interest-earning assets, (ii) the costs of our deposits and other funding sources, (iii) our net interest spread, and (iv) our net interest margin. Net interest spread is the difference between rates earned on interest-earning assets and rates paid on interest-bearing liabilities. Net interest margin is calculated as the annualized net interest income divided by average interest-earning assets. Because non-interest-bearing sources of funds, such as non-interest-bearing deposits and stockholders’ equity, also fund interest-earning assets, net interest margin includes the benefit of these non-interest-bearing sources.

We also recognize income from the accretable discounts associated with the purchase of interest-earning assets. Because of our recapitalization and bank acquisitions, we derive a portion of our interest income from the accretable discounts on acquired loans. The accretion is generally recognized over the life of the loan and is impacted by changes in expected cash flows on the loan. This accretion will continue to have an impact on our net interest income as long as loans acquired with a discount at acquisition represent a meaningful portion of our interest-earning assets. As of September 30, 2021, acquired loans with evidence of credit deterioration accounted for under ASC Topic 310-30, Accounting for Purchased Loans with Deteriorated Credit Quality, represented 3.3% of our total loan portfolio compared to 4.7% at December 31, 2020.

50

Changes in the market interest rates we earn on interest-earning assets or pay on interest-bearing liabilities, as well as the volume and types of interest-earning assets, interest-bearing and non-interest-bearing liabilities, are usually the largest drivers of periodic changes in net interest spread, net interest margin and net interest income. In addition, our interest income includes the accretion of the discounts on our acquired loans, which will also affect our net interest spread, net interest margin and net interest income.

The following tables present, for the periods indicated, information about (i) average balances, the total dollar amount of interest income from interest-earning assets and the resultant average yields; (ii) average balances, the total dollar amount of interest expense on interest-bearing liabilities and the resultant average rates; (iii) net interest income; (iv) the interest rate spread; and (v) the net interest margin. Yields have been calculated on a pre-tax basis (dollars in thousands).

	Three Months Ended September 30,
	2021									2020
	Average Balance(5)			Interest Inc / Exp			Average Yield / Rate			Average Balance(5)			Interest Inc / Exp			Average Yield / Rate
ASSETS
Cash and cash equivalents	$	40,088		$	19			0.19	%	$	48,678		$	25			0.20	%
Loans and leases(1)		4,539,111			56,291			4.92	%		4,360,203			51,036			4.66	%
Taxable securities		1,309,802			5,472			1.66	%		1,364,516			6,341			1.85	%
Tax-exempt securities(2)		187,064			1,254			2.66	%		143,157			1,054			2.93	%
Total interest-earning assets	$	6,076,065		$	63,036			4.12	%	$	5,916,554		$	58,456			3.93	%
Allowance for loan and lease losses		(61,528	)								(53,964	)
All other assets		546,331									538,700
TOTAL ASSETS	$	6,560,868								$	6,401,290
LIABILITIES AND STOCKHOLDERS’    EQUITY
Deposits
Interest checking	$	653,543		$	228			0.14	%		565,917		$	226			0.16	%
Money market accounts		1,031,009			280			0.11	%		1,202,016			634			0.21	%
Savings		625,037			75			0.05	%		535,396			64			0.05	%
Time deposits		709,805			403			0.23	%		870,227			1,836			0.84	%
Total interest-bearing deposits		3,019,394			986			0.13	%		3,173,556			2,760			0.35	%
Other borrowings		426,284			349			0.33	%		538,237			465			0.34	%
Subordinated notes and debentures		110,195			1,592			5.73	%		100,756			1,485			5.86	%
Total borrowings		536,479			1,941			1.44	%		638,993			1,950			1.21	%
Total interest-bearing liabilities	$	3,555,873		$	2,927			0.33	%	$	3,812,549		$	4,710			0.49	%
Non-interest-bearing demand deposits		2,106,189									1,742,787
Other liabilities		75,052									54,843
Total stockholders’ equity		823,754									791,111
TOTAL LIABILITIES AND STOCKHOLDERS’    EQUITY	$	6,560,868								$	6,401,290
Net interest spread(3)								3.79	%								3.44	%
Net interest income, fully taxable equivalent				$	60,109								$	53,746
Net interest margin, fully taxable equivalent(2)(4)								3.92	%								3.61	%
Tax-equivalent adjustment					(264	)		0.01	%					(222	)		0.01	%
Net interest income				$	59,845								$	53,524
Net interest margin(4)								3.91	%								3.60	%
Net loan accretion impact on margin				$	1,638			0.11	%				$	3,911			0.26	%

(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 interest-earning assets.

(5)Average balances are average daily balances.

51

	Nine Months Ended September 30,
	2021									2020
	Average Balance(5)			Interest Inc / Exp			Average Yield / Rate			Average Balance(5)			Interest Inc / Exp			Average Yield / Rate
ASSETS
Cash and cash equivalents	$	56,926		$	75			0.18	%	$	48,861		$	207			0.57	%
Loans and leases(1)		4,487,909			164,423			4.90	%		4,148,465			155,347			5.00	%
Taxable securities		1,405,390			16,798			1.60	%		1,261,458			21,678			2.30	%
Tax-exempt securities(2)		184,826			3,729			2.70	%		115,161			2,625			3.04	%
Total interest-earning assets	$	6,135,051		$	185,025			4.03	%	$	5,573,945		$	179,857			4.31	%
Allowance for loan and lease losses		(64,768	)								(43,584	)
All other assets		552,660									522,321
TOTAL ASSETS	$	6,622,943								$	6,052,682
LIABILITIES AND STOCKHOLDERS’    EQUITY
Deposits
Interest checking	$	609,444		$	647			0.14	%	$	432,785		$	651			0.20	%
Money market accounts		1,068,770			940			0.12	%		1,126,588			3,794			0.45	%
Savings		603,366			214			0.05	%		509,001			186			0.05	%
Time deposits		734,708			1,664			0.30	%		986,419			10,179			1.38	%
Total interest-bearing deposits		3,016,288			3,465			0.15	%		3,054,793			14,810			0.81	%
Other borrowings		572,018			1,333			0.31	%		531,395			2,838			0.71	%
Subordinated notes and debentures		110,029			4,785			5.81	%		59,591			2,699			6.05	%
Total borrowings		682,047			6,118			1.20	%		590,986			5,537			1.25	%
Total interest-bearing liabilities	$	3,698,335		$	9,583			0.35	%	$	3,645,779		$	20,347			0.75	%
Non-interest-bearing demand deposits		2,039,242									1,578,704
Other liabilities		71,737									50,677
Total stockholders’ equity		813,629									777,522
TOTAL LIABILITIES AND STOCKHOLDERS’    EQUITY	$	6,622,943								$	6,052,682
Net interest spread(3)								3.68	%								3.56	%
Net interest income, fully taxable equivalent				$	175,442								$	159,510
Net interest margin, fully taxable equivalent(2)(4)								3.82	%								3.82	%
Tax-equivalent adjustment					(783	)		0.01	%					(552	)		0.01	%
Net interest income				$	174,659								$	158,958
Net interest margin(4)								3.81	%								3.81	%
Net loan accretion impact on margin				$	5,001			0.11	%				$	10,754			0.26	%

(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 interest-earning assets.

(5)Average balances are average daily balances.

52

Increases and decreases in interest income and interest expense result from changes in average balances (volume) of interest-earning assets and interest-bearing liabilities, as well as changes in average interest rates. The following table sets forth the effects of changing rates and volumes on our net interest income during the periods shown. Information is provided with respect to (i) effects on interest income attributable to changes in volume (changes in volume multiplied by prior rate) and (ii) effects on interest income attributable to changes in rate (changes in rate multiplied by prior volume). Changes applicable to both volume and rate have been allocated to volume. Yields have been calculated on a pre-tax basis. The table below is a summary of increases and decreases in interest income and interest expense resulting from changes in average balances (volume) and changes in average interest rates (dollars in thousands):

	Three Months Ended September 30, 2021 compared to Three Months Ended September 30, 2020
	Increase (Decrease) Due to
	Volume			Rate			Total
Interest income
Cash and cash equivalents	$	(5	)	$	(1	)	$	(6	)
Loans and leases(1)		2,398			2,857			5,255
Taxable securities		(216	)		(653	)		(869	)
Tax-exempt securities		297			(97	)		200
Total interest income	$	2,474		$	2,106		$	4,580
Interest expense
Deposits
Interest checking	$	31		$	(29	)	$	2
Money market accounts		(51	)		(303	)		(354	)
Savings		11			—			11
Time deposits		(95	)		(1,338	)		(1,433	)
Total interest-bearing deposits		(104	)		(1,670	)		(1,774	)
Other borrowings		(153	)		37			(116	)
Subordinated notes and debentures		152			(45	)		107
Total borrowings		(1	)		(8	)		(9	)
Total interest expense	$	(105	)	$	(1,678	)	$	(1,783	)
Net interest income, fully taxable equivalent	$	2,579		$	3,784		$	6,363

(1)Includes loans and leases on non-accrual status.

Net interest income for the three months ended September 30, 2021 was $59.8 million compared to $53.5 million during the same period in 2020, an increase of $6.3 million, or 11.8%. Interest income increased $4.5 million for the three months ended September 30, 2021 compared to the same period in 2020 primarily a result of increased average balance on loans and leases, higher market interest rates, and higher fees related to PPP loan forgiveness. Interest expense decreased by $1.8 million for the three months ended September 30, 2021 compared to the same period in 2020 mostly due to decreases in the average rates paid on deposits and other borrowings.

53

	Nine Months Ended September 30, 2021 compared to Nine Months Ended September 30, 2020
	Increase (Decrease) Due to
	Volume			Rate			Total
Interest income
Cash and cash equivalents	$	11		$	(143	)	$	(132	)
Loans and leases(1)		12,179			(3,103	)		9,076
Taxable securities		1,725			(6,605	)		(4,880	)
Tax-exempt securities		1,397			(293	)		1,104
Total interest income	$	15,312		$	(10,144	)	$	5,168
Interest expense
Deposits
Interest checking	$	190		$	(194	)	$	(4	)
Money market accounts		(73	)		(2,781	)		(2,854	)
Savings		28			—			28
Time deposits		(547	)		(7,968	)		(8,515	)
Total interest-bearing deposits		(402	)		(10,943	)		(11,345	)
Other borrowings		395			(1,900	)		(1,505	)
Subordinated notes and debentures		2,412			(326	)		2,086
Total borrowings		2,807			(2,226	)		581
Total interest expense	$	2,405		$	(13,169	)	$	(10,764	)
Net interest income, fully taxable equivalent	$	12,907		$	3,025		$	15,932

(1)Includes loans and leases on non-accrual status.

Net interest income for the nine months ended September 30, 2021 was $174.7 million compared to $159.0 million during the same period in 2020, an increase of $15.7 million, or 9.9%. Interest income increased $4.9 million for the nine months ended September 30, 2021 compared to the same period in 2020 primarily a result of loan and lease growth through originations. Interest expense decreased by $10.8 million for the nine months ended September 30, 2021 compared to the same period in 2020 mostly due to decreases in the average rates paid on deposits and other borrowings as well as a change in deposit mix.

The net interest margin for the three months ended September 30, 2021 was 3.91%, an increase of 31 basis points compared to 3.60% for the three months ended September 30, 2020. The primary drivers of the increase for the three month period was an increase in average loan and lease yields.

The net interest margin for the nine months ended September 30, 2021 and 2020 was 3.81%, driven by an increase in average interest earning assets and decreases in cost of funds, offset by lower average yields on loans and leases.

54

Net loan accretion income was $1.6 million for the three months ended September 30, 2021 compared to $3.9 million for the three months ended September 30, 2020, a decrease of $2.3 million, or 58.1%. Net loan accretion income was $5.0 million for the nine months ended September 30, 2021 compared to $10.8 million for the nine months ended September 30, 2020, a decrease of $5.8 million or 53.5%. Total net loan accretion on acquired loans contributed 11 basis points to the net interest margin for the three months ended September 30, 2021 compared to 26 basis points for the three months ended September 30, 2020. Total net loan accretion on acquired loans contributed 11 basis points to the net interest margin for the nine months ended September 30, 2021 compared to 26 basis points for the nine months ended September 30, 2020. Projected accretion income as of September 30, 2021 is summarized as follows:

	Estimated Projected Accretion(1)(2)
Last three months of 2021	$	553
2022		2,105
2023		1,410
2024		633
2025		383
Thereafter		819
Total	$	5,903

(1)Estimated projected accretion excludes contractual interest income on ASC 310-30 loans.

(2)Projections are updated quarterly, assume no prepayments, and are subject to change; including as a result of the Company’s expected adoption of ASU No. 2016-13, Measurement of Credit Losses on Financial Instruments on December 31, 2022.

Provision for Loan and Lease Losses

The provision for loan and lease losses represents a charge to earnings necessary to establish an allowance for loan and lease losses that, in management’s evaluation, is appropriate to provide coverage for probable losses incurred in the loan and lease portfolio. The allowance for loan and lease losses is increased by the provision for loan and lease losses and is decreased by charge-offs, net of recoveries on prior charge-offs.

Provisions for loan and lease losses was $352,000 and $15.7 million for the three months ended September 30, 2021 and 2020, respectively, a decrease of $15.4 million, or 97.8%. Provisions for loan and lease losses was $2.8 million and $45.7 million for the nine months ended September 30, 2021 and 2020, respectively, a decrease of $42.9 million, or 94.0%.

The ALLL as a percentage of loans and leases decreased from 1.53% at December 31, 2020 to 1.31% at September 30, 2021. The ALLL as a percentage of loans and leases excluding PPP loans was 1.40% and 1.74% at September 30, 2021 and December 31, 2020, respectively.

Non-Interest Income

Non-interest income was $18.5 million for the three months ended September 30, 2021 compared to $22.2 million for the three months ended September 30, 2020, a decrease of $3.7 million, or 16.8%. The decrease was primarily due to a downward revaluation of loan servicing assets.

	Three Months Ended September 30,					Nine Months Ended September 30,						QTD 2021 Compared to 2020						YTD 2021 Compared to 2020
	2021			2020		2021			2020			$ Change			% Change			$ Change			% Change
Fees and service charges on    deposits	$	1,867		$	1,603	$	5,299		$	4,731		$	264			16.4	%	$	568			12.0	%
Loan servicing revenue		3,344			2,936		9,301			8,674			408			13.9	%		627			7.2	%
Loan servicing asset    revaluation		(2,650	)		1,122		(4,148	)		(2,653	)		(3,772	)	NM				(1,495	)		56.4	%
ATM and interchange fees		1,201			1,028		3,257			3,089			173			16.7	%		168			5.4	%
Net realized gains on    securities available-for-sale		130			1,037		1,456			2,412			(907	)		(87.4	)%		(956	)		(39.6	)%
Change in fair value of equity    securities, net		(275	)		154		36			301			(429	)	NM				(265	)		(88.0	)%
Net gains on sales of loans		12,761			12,671		33,350			23,900			90			0.7	%		9,450			39.5	%
Wealth management and    trust income		815			693		2,305			1,970			122			17.7	%		335			17.0	%
Other non-interest income		1,302			990		4,383			1,946			312			31.7	%		2,437			125.3	%
Total non-interest income	$	18,495		$	22,234	$	55,239		$	44,370		$	(3,739	)		(16.8	)%	$	10,869			24.5	%

55

Fees and service charges on deposits represent amounts charged to customers for banking services, such as fees on deposit accounts, and include, but are not limited to, maintenance fees, insufficient fund fees, overdraft protection fees, wire transfer fees, and other charges. Fees and service charges on deposits were $1.9 million and $1.6 million for the three months ended September 30, 2021 and 2020, respectively. Fees and service charges on deposits were $5.3 million and $4.7 million for the nine months ended September 30, 2021 and 2020, respectively. Increases in both periods are due to increases in deposits.

While portions of the loans that we originate are sold and generate gains on sale revenue, servicing rights for the majority of loans that we sell are retained by us. In exchange for continuing to service loans that have been sold, we receive servicing revenue from a portion of the interest cash flow of the loan. We generated $3.3 million and $2.9 million in loan servicing revenue on the sold portion of the U.S. government guaranteed loans for the three months ended September 30, 2021 and 2020, respectively. We generated $9.3 million and $8.7 million in loan servicing revenue on the sold portion of the U.S. government guaranteed loans for the nine months ended September 30, 2021 and 2020, respectively. At September 30, 2021 and 2020, the outstanding balance of guaranteed loans serviced was $1.6 billion and $1.5 billion, respectively.

Loan servicing asset revaluation represents net changes in the fair value of our servicing assets. Loan servicing asset revaluation had a downward adjustment of $2.7 million for the three months ended September 30, 2021 compared to an upward adjustment of $1.1 million for the three months ended September 30, 2020, a change of $3.8 million due to changes in the fair value of the servicing asset. Loan servicing asset revaluation had a downward adjustment of $4.1 million for the nine months ended September 30, 2021 compared to a downward adjustment of $2.7 million for the nine months ended September 30, 2020, an increase of $1.5 million, or 56.4%, due to changes in market premiums and prepayment speeds.

ATM and interchange fees were $1.2 million for the three months ended September 30, 2021 compared to $1.0 million for the three months ended September 30, 2020, an increase of $173,000, or 16.7%. The increase was primarily driven by increased transactional account volume and higher interchange income.

Change in fair value of equity securities, net, were a decrease of $275,000 compared to an increase of $154,000 for the three months ended September 30, 2021 and 2020, respectively. Changes in fair value of equity securities, net, were increases of $36,000 and $301,000 for the nine months ended September 30, 2021 and 2020, respectively. The amounts recorded during the periods were driven by market conditions.

Net gains on sales of loans were $12.8 million for the three months ended September 30, 2021 compared to $12.7 million for the three months ended September 30, 2020, an increase of $90,000, or 0.7%. We sold $104.2 million of U.S. government guaranteed loans during the three months ended September 30, 2021 compared to $121.2 million during the three months ended September 30, 2020. Net gains on sales of loans were $33.4 million for the nine months ended September 30, 2021 compared to $23.9 million for the nine months ended September 30, 2020, an increase of $9.5 million, or 39.5%. We sold $278.7 million of U.S. government guaranteed loans during the nine months ended September 30, 2021 compared to $260.9 million during the nine months ended September 30, 2020.

Wealth management and trust income represents fees charged to customers for investment, trust, or wealth management services and are primarily determined by total assets under management. Wealth management and trust income was $815,000 for the three months ended September 30, 2021 compared to $693,000 for the three months ended September 30, 2020. Wealth management and trust income was $2.3 million for the nine months ended September 30, 2021 compared to $2.0 million for the nine months ended September 30, 2020. The variances were mostly driven by market conditions. Assets under management were $626.0 million and $557.9 million as of September 30, 2021 and 2020, respectively.

Other non-interest income was $1.3 million for the three months ended September 30, 2021 compared to $990,000 for the three months ended September 30, 2020, an increase of $312,000 or 31.7%. Other non-interest income was $4.4 million for the nine months ended September 30, 2021 compared to $1.9 million for the nine months ended September 30, 2020, an increase of $2.4 million or 125.2%. The primary driver of the increase in both periods was increased customer derivative products income and bank-owned life insurance income.

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Non-Interest Expense

Non-interest expense was $44.2 million for the three months ended September 30, 2021 compared to $41.7 million for the three months ended September 30, 2020, an increase of $2.5 million, or 6.0%. The increase was primarily due to an increase in salaries and employee benefits.

Non-interest expense was $126.0 million for the nine months ended September 30, 2021 compared to $122.4 million for the nine months ended September 30, 2020, an increase of $3.6 million, or 2.9%. The increase was primarily due to an increase in salaries and employee benefits.

The following table presents the major components of our non-interest expense for the periods indicated (dollars in thousands):

	Three Months Ended September 30,				Nine Months Ended September 30,				QTD 2021 Compared to 2020						YTD 2021 Compared to 2020
	2021		2020		2021		2020		$ Change			% Change			$ Change			% Change
Salaries and employee benefits	$	25,978	$	23,126	$	72,372	$	67,197	$	2,852			12.3	%	$	5,175			7.7	%
Occupancy and equipment    expense, net		4,982		5,220		15,617		16,103		(238	)		(4.6	)%		(486	)		(3.0	)%
Loan and lease related   expenses		1,175		2,053		3,629		4,631		(878	)		(42.7	)%		(1,002	)		(21.6	)%
Legal, audit and other    professional fees		2,710		2,390		7,822		6,802		320			13.4	%		1,020			15.0	%
Data processing		3,108		2,661		8,710		8,152		447			16.8	%		558			6.8	%
Net loss recognized on other    real estate owned and    other related expenses		42		349		1,052		1,324		(307	)		(87.8	)%		(272	)		(20.5	)%
Other intangible assets    amortization expense		1,738		1,947		5,335		5,732		(209	)		(10.7	)%		(397	)		(6.9	)%
Other non-interest expense		4,447		3,941		11,466		12,460		506			12.8	%		(994	)		(8.0	)%
Total non-interest expense	$	44,180	$	41,687	$	126,003	$	122,401	$	2,493			6.0	%	$	3,602			2.9	%

Salaries and employee benefits, the single largest component of our non-interest expense, totaled $26.0 million for the three months ended September 30, 2021 compared to $23.1 million for the three months ended September 30, 2020, an increase of $2.9 million, or 12.3%. The increase was primarily a result of new hires. Salaries and employee benefits, totaled $72.4 million for the nine months ended September 30, 2021, compared to $67.2 million for the nine months ended September 30, 2020, an increase of $5.2 million, or 7.7%. The increase resulted from an increase in incentive compensation.

Occupancy and equipment expense was $5.0 million for the three months ended September 30, 2021 compared to $5.2 million for the three months ended September 30, 2020, a decrease of $238,000, or 4.6%. Occupancy and equipment expense was $15.6 million for the nine months ended September 30, 2021 compared to $16.1 million for the nine months ended September 30, 2020, a decrease of $486,000, or 3.0%. The decreases were a result of lower lease obligation expense due to branch consolidations.

Loan and lease related expenses were $1.2 million for the three months ended September 30, 2021 compared to $2.1 million for the three months ended September 30, 2020, a decrease of $878,000, or 42.7%. Loan and lease related expenses were $3.6 million for the nine months ended September 30, 2021 compared to $4.6 million for the nine months ended September 30, 2020, a decrease of $1.0 million, or 21.6%. The decreases were principally driven by lower broker fees.

Legal, audit, and other professional fees were $2.7 million for the three months ended September 30, 2021 compared to $2.4 million for the three months ended September 30, 2020, an increase of $320,000, or 13.4%. Legal, audit, and other professional fees were $7.8 million for the nine months ended September 30, 2021 compared to $6.8 million for the nine months ended September 30, 2020, an increase of $1.0 million, or 15.0%. The increase in both periods was driven by increases in consulting fees.

Net loss recognized on other real estate owned and other related expenses was $42,000 for the three months ended September 30, 2021 compared to $349,000 for the three months ended September 30, 2020, a decrease of $307,000, or 87.8%. Net loss recognized on other real estate owned and other related expenses was $1.1 million for the nine months ended September 30, 2021 compared to $1.3 million for the nine months ended September 30, 2020, a decrease of $272,000, or 20.5%. These decreases were primarily due to impairments of other real estate owned made during the prior year.

Other intangible assets amortization expense was $1.7 million for the three months ended September 30, 2021 compared to $1.9 million for the three months ended September 30, 2020, a decrease of $209,000, or 10.7%. Other intangible assets amortization expense was $5.3 million for the nine months ended September 30, 2021 compared to $5.7 million for the nine months ended September 30, 2020, a decrease of $397,000, or 6.9%.

Other non-interest expense was $4.4 million for the three months ended September 30, 2021 compared to $3.9 million for the three months ended September 30, 2020, an increase of $506,000 or 12.8%. The increase was mostly due to higher impairment charges on assets held for sale. Other non-interest expense was $11.5 million for the nine months ended September 30, 2021 compared to $12.5 million for the

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nine months ended September 30, 2020, a decrease of $994,000 or 8.0%. The decrease was driven by lower provision for unfunded commitments and lower regulatory and director expenses, offset by higher impairment charges on assets held for sale.

Our efficiency ratio was 54.18% for the three months ended September 30, 2021 compared to 52.46% for the three months ended September 30, 2020. The change in our efficiency ratio for the three months ended September 30, 2021 was driven by both an increase in our non-interest expense and a decrease in our non-interest income. Our adjusted efficiency ratio was 52.35% for the three months ended September 30, 2021 compared to 52.42% for the three months ended September 30, 2020.

Our efficiency ratio was 52.49% for the nine months ended September 30, 2021 compared to 57.38% for the nine months ended September 30, 2020. The change in our efficiency ratio for the nine months ended September 30, 2021 was driven by both an increase in our net interest income and an increase in our non-interest income. Our adjusted efficiency ratio was 50.76% for the nine months ended September 30, 2021 compared to 57.01% for the nine months ended September 30, 2020.

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

Income Taxes

Our provision for income taxes for the three months ended September 30, 2021 totaled $8.5 million compared to $5.3 million for the three months ended September 30, 2020. The increase in income tax expense was principally due to increased income before provision for income taxes during the period. Our effective tax rate was 25.1% for the three months ended September 30, 2021 and 28.7% for the three months ended September 30, 2020.

Our provision for income taxes for the nine months ended September 30, 2021 totaled $25.5 million compared to $10.0 million for the nine months ended September 30, 2020. The increase in income tax expense was principally due to increased income before provision for income taxes during the period. Our effective tax rate was 25.3% for the nine months ended September 30, 2021 and 28.5% for the nine months ended September 30, 2020.

Financial Condition

Balance Sheet Analysis

Our total assets increased by $313.8 million, or 4.9%, to $6.7 billion at September 30, 2021 compared to $6.4 billion at December 31, 2020. The increase in total assets includes an increase of $268.7 million, or 6.2%, in loans and leases from $4.3 billion at December 31, 2020 to $4.6 billion at September 30, 2021. Our originated loan and lease portfolio increased by $434.3 million and our acquired loan and lease portfolio decreased by $165.6 million. The increase in our originated portfolio was primarily attributed to organic loan and lease growth, and renewals of acquired non-impaired loans that are now reflected with originated loans, offset by decrease in PPP loans. The decrease in our acquired portfolio was attributed to renewals reflected in originated loans, payoffs, and pay downs during the period.

Total liabilities increased by $294.8 million, or 5.3%, to $5.9 billion at September 30, 2021 compared to $5.6 billion at December 31, 2020. Total deposits increased by $406.2 million, or 8.5%, driven by growth in non-interest-bearing deposits and interest-bearing checking accounts, partly offset by a decrease in time deposits. Other borrowings decreased by $108.8 million, or 16.8%, mainly due to a decrease in PPPLF advances.

Investment Portfolio

Our investment securities portfolio consists of securities classified as available-for-sale and held-to-maturity. There were no securities classified as trading in our investment portfolio as of September 30, 2021 or December 31, 2020. All available-for sale securities are carried at fair value and may be used for liquidity purposes should management consider it to be in our best interest. Securities available-for-sale consist primarily of residential mortgage-backed securities, commercial mortgage-backed securities and U.S. government agencies securities.

Securities available-for-sale decreased by $19.6 million, or 1.4%, from $1.4 billion at December 31, 2020 to $1.4 billion at September 30, 2021. The decrease was mainly attributed to decreases in the fair value of available-for-sale securities.

At September 30, 2021, our held-to-maturity securities portfolio consists of obligations of states, municipalities and political subdivisions. We carry these securities at amortized cost. Securities held-to-maturity were $3.9 million at September 30, 2021 and $4.4 million at December 31, 2020.

We had no securities that were classified as having other-than-temporary-impairment (“OTTI”) as of September 30, 2021 or December 31, 2020.

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The following table summarizes the fair value of the available-for-sale and held-to-maturity securities portfolio as of the dates presented (dollars in thousands):

	September 30, 2021				December 31, 2020
	Amortized Cost		Fair Value		Amortized Cost		Fair Value
Available-for-sale
U.S. Treasury Notes	$	8,487	$	8,578	$	23,468	$	23,812
U.S. Government agencies		124,244		123,264		113,088		113,551
Obligations of states, municipalities, and    political subdivisions		101,499		105,060		135,513		142,419
Residential mortgage-backed securities
Agency		794,856		785,173		764,951		778,391
Non-agency		64,645		64,009		32,654		32,981
Commercial mortgage-backed securities
Agency		237,376		237,409		244,496		250,152
Corporate securities		64,842		66,827		59,020		60,768
Asset-backed securities		37,203		37,285		45,255		45,156
Total	$	1,433,152	$	1,427,605	$	1,418,445	$	1,447,230

	September 30, 2021				December 31, 2020
	Amortized Cost		Fair Value		Amortized Cost		Fair Value
Held-to-maturity
Obligations of states, municipalities, and    political subdivisions	$	3,887	$	4,033	$	4,395	$	4,573
Total	$	3,887	$	4,033	$	4,395	$	4,573

Certain securities have fair values less than amortized cost and, therefore, contain unrealized losses. At September 30, 2021, we evaluated the securities which had an unrealized loss for OTTI and determined all declines in value to be temporary. There were 97 investment securities with unrealized losses at September 30, 2021. We anticipate full recovery of amortized cost with respect to these securities by maturity, or sooner in the event of a more favorable market interest rate environment. We do not intend to sell these securities and it is not more likely than not that we will be required to sell them before recovery of their amortized cost basis, which may be at maturity.

The following tables (dollars in thousands) set forth certain information regarding contractual maturities and the weighted average yields of our investment securities as of the dates presented. Expected maturities may differ from contractual maturities if borrowers have the right to call or prepay obligations with or without call or prepayment penalties.

	Maturity as of September 30, 2021
	Due in One Year or Less					Due from One to Five Years					Due from Five to Ten Years					Due after Ten Years
	Amortized Cost		Weighted Average Yield(1)			Amortized Cost		Weighted Average Yield(1)			Amortized Cost		Weighted Average Yield(1)			Amortized Cost		Weighted Average Yield(1)
Available-for-sale
U.S. Treasury Notes	$	8,487		2.51	%	$	—		0.00	%	$	—		0.00	%	$	—		0.00	%
U.S. government agencies		1,991		2.80	%		—		0.00	%		103,215		1.16	%		19,038		1.32	%
Obligations of states,    municipalities, and    political subdivisions		10,720		2.37	%		19,518		2.47	%		19,716		2.88	%		51,545		2.34	%
Residential mortgage-   backed securities
Agency		—		0.00	%		562		1.32	%		100,635		1.47	%		693,659		1.15	%
Non-agency		—		0.00	%		—		0.00	%		—		0.00	%		64,645		1.90	%
Commercial mortgage-    backed securities
Agency		—		0.00	%		7,560		2.06	%		13,172		1.58	%		216,644		2.01	%
Corporate securities		2,003		3.53	%		6,958		2.18	%		55,881		4.04	%		—		0.00	%
Asset-backed securities		—		0.00	%		—		0.00	%		30,622		1.60	%		6,581		1.59	%
Total	$	23,201		2.56	%	$	34,598		2.30	%	$	323,241		1.92	%	$	1,052,112		1.44	%

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	Maturity as of September 30, 2021
	Due in One Year or Less					Due from One to Five Years					Due from Five to Ten Years					Due after Ten Years
	Amortized Cost		Weighted Average Yield(1)			Amortized Cost		Weighted Average Yield(1)			Amortized Cost		Weighted Average Yield(1)			Amortized Cost		Weighted Average Yield(1)
Held-to-maturity
Obligations of states,    municipalities, and    political subdivisions	$	—		0.00	%	$	3,887		2.62	%	$	—		0.00	%	$	—		0.00	%
Total	$	—		0.00	%	$	3,887		2.62	%	$	—		0.00	%	$	—		0.00	%

(1)The weighted average yields are based on amortized cost.

	Maturity as of December 31, 2020
	Due in One Year or Less					Due from One to Five Years					Due from Five to Ten Years					Due after Ten Years
	Amortized Cost		Weighted Average Yield(1)			Amortized Cost		Weighted Average Yield(1)			Amortized Cost		Weighted Average Yield(1)			Amortized Cost		Weighted Average Yield(1)
Available-for-sale
U.S. Treasury Notes	$	14,998		2.52	%	$	8,470		2.51	%	$	—		0.00	%	$	—		0.00	%
U.S. government agencies		498		2.42	%		1,977		2.80	%		91,430		1.26	%		19,183		1.32	%
Obligations of states,    municipalities, and   political subdivisions		8,944		2.47	%		22,208		2.45	%		22,101		2.79	%		82,260		2.39	%
Residential mortgage-   backed securities
Agency		—		0.00	%		975		1.35	%		85,519		1.37	%		678,457		1.40	%
Non-agency		—		0.00	%		—		0.00	%		—		0.00	%		32,654		2.72	%
Commercial mortgage-    backed securities
Agency		—		0.00	%		7,504		3.35	%		13,198		1.56	%		223,794		2.02	%
Corporate securities		2,500		3.25	%		8,703		3.08	%		47,817		4.05	%		—		0.00	%
Asset-backed securities		—		0.00	%		—		0.00	%		10,753		2.28	%		34,502		1.42	%
Total	$	26,940		2.57	%	$	49,837		2.70	%	$	270,818		1.97	%	$	1,070,850		1.64	%

	Maturity as of December 31, 2020
	Due in One Year or Less					Due from One to Five Years					Due from Five to Ten Years					Due after Ten Years
	Amortized Cost		Weighted Average Yield(1)			Amortized Cost		Weighted Average Yield(1)			Amortized Cost		Weighted Average Yield(1)			Amortized Cost		Weighted Average Yield(1)
Held-to-maturity
Obligations of states,    municipalities, and   political subdivisions	$	501		1.50	%	$	3,894		2.62	%	$	—		0.00	%	$	—		0.00	%
Total	$	501		1.50	%	$	3,894		2.62	%	$	—		0.00	%	$	—		0.00	%

(1)The weighted average yields are based on amortized cost.

As of September 30, 2021, investment securities indexed to LIBOR were $60.7 million.

Total non-taxable securities classified as obligations of states, municipalities and political subdivisions were $76.2 million at September 30, 2021, a decrease of $1.2 million from December 31, 2020.

There were no holdings of securities of any one issuer, other than U.S. government-sponsored entities and agencies, with total outstanding balances greater than 10% of our stockholders’ equity as of September 30, 2021 or December 31, 2020.

Restricted Stock

As a member of the Federal Home Loan Bank system, Byline Bank is required to maintain an investment in the capital stock of the FHLB. No market exists for this stock, and it has no quoted market value. The stock is redeemable at par by the FHLB and is, therefore, carried at cost. In addition, Byline Bank owns stock of Bankers’ Bank that was acquired as part of a bank acquisition. The stock is redeemable at par and carried at cost. As of September 30, 2021 and December 31, 2020, we held $15.9 million and $10.5 million, respectively, in FHLB

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and Bankers’ Bank stock. We evaluate impairment of our investment in FHLB and Bankers’ Bank based on the ultimate recoverability of the par value rather than by recognizing temporary declines in value. We did not identify any indicators of impairment of FHLB and Bankers’ Bank stock as of September 30, 2021 and December 31, 2020.

Loan and Lease Portfolio

Lending-related income is the most important component of our net interest income and is the main driver of the results of our operations. Total loans and leases at September 30, 2021 and December 31, 2020 were $4.6 billion and $4.3 billion, respectively, an increase of $268.7 million, or 6.2%. Originated loans were $4.1 billion at September 30, 2021, an increase of $434.3 million, or 11.8%, compared to $3.7 billion at December 31, 2020. Acquired impaired loans and acquired non-impaired loans and leases were $506.4 million at September 30, 2021, a decrease of $165.6 million, or 24.6%, compared to $672.1 million at December 31, 2020. The increase in our originated portfolio was primarily attributed to organic loan and lease growth, and renewals of acquired non-impaired loans that are now reflected with originated loans. The decrease in our acquired portfolio is attributed to renewals reflected in originated loans, payoffs, and pay downs during the period, offset by a decrease in PPP loans of $249.7 million.

We strive to maintain a relatively diversified loan portfolio to help reduce the risk inherent in concentration in certain types of collateral. Loans, excluding leases, are typically made to real estate, manufacturing, wholesale, retail and service businesses for working capital needs, business expansions and operations. The Company's exposure to certain industries as of September 30, 2021 represents the following percentages of the portfolio: 32.3% real estate, 14.5% manufacturing, 7.4% wholesale trade, 6.6% retail trade, 5.0% accommodation and food service, 5.0% consumer, and all other industries individually represent less than 5% of the portfolio or 23.7% of the total loan portfolio. As of September 30, 2021, the loan portfolio included $426.5 million of unguaranteed 7(a) SBA and USDA loans with exposure to the following top three industries: 14.1% food services, 14.0% retail trade, and 13.3% manufacturing. The following table shows our allocation of originated, acquired impaired and acquired non-impaired loans and leases as of the dates presented (dollars in thousands):

	September 30, 2021						December 31, 2020
	Amount			% of Total			Amount			% of Total
Originated loans and leases
Commercial real estate	$	1,298,454			28.2	%	$	1,017,587			23.5	%
Residential real estate		387,578			8.4	%		414,220			9.6	%
Construction, land development, and other land		336,460			7.3	%		226,408			5.2	%
Commercial and industrial		1,480,076			32.1	%		1,276,527			29.4	%
Paycheck Protection Program		268,081			5.8	%		517,815			11.9	%
Installment and other		998			0.0	%		1,267			0.0	%
Leasing financing receivables		331,149			7.2	%		214,636			4.9	%
Total originated loans and leases	$	4,102,796			89.0	%	$	3,668,460			84.5	%
Acquired impaired loans
Commercial real estate	$	84,821			1.8	%	$	108,484			2.5	%
Residential real estate		61,893			1.3	%		78,840			1.9	%
Construction, land development, and other land		1,746			0.1	%		4,113			0.1	%
Commercial and industrial		6,651			0.1	%		10,178			0.2	%
Installment and other		169			0.0	%		202			0.0	%
Total acquired impaired loans	$	155,280			3.3	%	$	201,817			4.7	%
Acquired non-impaired loans and leases
Commercial real estate	$	235,103			5.1	%	$	295,599			6.8	%
Residential real estate		58,283			1.3	%		79,211			1.8	%
Construction, land development, and other land		206			0.0	%		212			0.0	%
Commercial and industrial		49,678			1.1	%		82,195			1.9	%
Installment and other		275			0.0	%		536			0.0	%
Leasing financing receivables		7,607			0.2	%		12,505			0.3	%
Total acquired non-impaired loans and leases	$	351,152			7.7	%	$	470,258			10.8	%
Total loans and leases	$	4,609,228			100.0	%	$	4,340,535			100.0	%
Allowance for loan and lease losses		(60,598	)					(66,347	)
Total loans and leases, net of allowance for loan and lease    losses	$	4,548,630					$	4,274,188

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Loans collateralized by real estate comprised 53.5% and 51.4% of the loan and lease portfolio at September 30, 2021 and December 31, 2020, respectively. Commercial real estate loans comprised the largest portion of the real estate loan portfolio as of September 30, 2021 and December 31, 2020 and totaled $1.6 billion, or 65.7% of real estate loans and 35.1% of the total loan and lease portfolio at September 30, 2021. At December 31, 2020, commercial real estate loans totaled $1.4 billion and comprised 63.9% of real estate loans and 32.8% of the total loan and lease portfolio. Acquired impaired commercial real estate loans decreased from $108.5 million as of December 31, 2020 to $84.8 million as of September 30, 2021, or 21.8%. At September 30, 2021 and December 31, 2020, commercial real estate loans, including both owner-occupied and non-owner occupied, as a percentage of total capital were 302.3% and 282.5%, respectively. Non-owner occupied commercial real estate loans were $623.9 million and $533.9 million, or 83.6% and 79.0% of total capital, at September 30, 2021 and December 31, 2020, respectively.

Residential real estate loans totaled $507.8 million at September 30, 2021 compared to $572.3 million at December 31, 2020, a decrease of $64.5 million, or 11.3%. The residential real estate loan portfolio comprised 20.6% and 25.7% of real estate loans as of September 30, 2021 and December 31, 2020, respectively, and 11.0% and 13.3% of total loans and leases at September 30, 2021 and December 31, 2020, respectively. Acquired impaired residential real estate loans decreased from $78.8 million at December 31, 2020 to $61.9 million at September 30, 2021, or 21.5%.

Construction, land development, and other land loans totaled $338.4 million at September 30, 2021 compared to $230.7 million at December 31, 2020, an increase of $107.7 million, or 46.7%. The construction, land development and other land loan portfolio comprised 13.7% and 10.4% of real estate loans at September 30, 2021 and December 31, 2020, respectively, and 7.4% and 5.3% of the total loan and lease portfolio at September 30, 2021 and December 31, 2020, respectively.

Commercial and industrial loans totaled $1.5 billion and $1.4 billion at September 30, 2021 and December 31, 2020, respectively, an increase of $167.5 million, or 12.2%. The commercial and industrial loan portfolio comprised 33.3% and 31.5% of the total loan and lease portfolio at September 30, 2021 and December 31, 2020, respectively.

Lease financing receivables comprised 7.4% and 5.2% of the loan and lease portfolio at September 30, 2021 and December 31, 2020, respectively. Total lease financing receivables were $338.8 million and $227.1 million at September 30, 2021 and December 31, 2020, respectively, an increase of $111.6 million, or 49.1%.

In support of our customers impacted by the COVID-19 pandemic and keeping with regulatory guidance, we began offering relief through payment deferrals during the first quarter of 2020. As of September 30, 2021, we had $2.0 million in active deferrals, or 0.05% of loans and leases excluding PPP loans.

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Loan and Lease Portfolio Maturities and Interest Rate Sensitivity

The following table shows our loan and lease portfolio by scheduled maturity at September 30, 2021 (dollars in thousands):

	Due in One Year or Less				Due after One Year Through Five Years				Due after Five Years
	Fixed Rate		Floating Rate		Fixed Rate		Floating Rate		Fixed Rate		Floating Rate		Total
Originated loans and leases
Commercial real estate	$	66,603	$	107,306	$	387,802	$	219,452	$	215,323	$	301,968	$	1,298,454
Residential real estate		13,146		15,590		69,192		68,563		131,097		89,990		387,578
Construction, land development,    and other land		1,999		95,753		20,292		205,285		6,987		6,144		336,460
Commercial and industrial		26,753		261,748		142,937		619,128		118,416		311,094		1,480,076
Paycheck Protection Program		—		—		268,081		—		—		—		268,081
Installment and other		110		13		596		—		279		—		998
Leasing financing receivables		14,727		—		281,935		—		34,487		—		331,149
Total originated loans and    leases	$	123,338	$	480,410	$	1,170,835	$	1,112,428	$	506,589	$	709,196	$	4,102,796
Acquired impaired loans
Commercial real estate	$	30,939	$	2,354	$	43,352	$	1,157	$	3,644	$	3,375	$	84,821
Residential real estate		20,871		1,491		23,343		104		12,775		3,309		61,893
Construction, land development,    and other land		588		117		1,041		—		—		—		1,746
Commercial and industrial		2,159		105		2,828		85		1,077		397		6,651
Installment and other		—		—		43		—		126		—		169
Total acquired impaired loans	$	54,557	$	4,067	$	70,607	$	1,346	$	17,622	$	7,081	$	155,280
Acquired non-impaired loans and    leases
Commercial real estate	$	26,659	$	20,361	$	88,725	$	10,154	$	32,768	$	56,436	$	235,103
Residential real estate		5,542		12,097		16,077		13,219		2,969		8,379		58,283
Construction, land development,    and other land		206		—		—		—		—		—		206
Commercial and industrial		4,551		634		15,873		19,640		1,953		7,027		49,678
Installment and other		17		11		169		78		—		—		275
Leasing financing receivables		647		—		6,960		—		—		—		7,607
Total acquired non-impaired    loans and leases	$	37,622	$	33,103	$	127,804	$	43,091	$	37,690	$	71,842	$	351,152
Total loans and leases	$	215,517	$	517,580	$	1,369,246	$	1,156,865	$	561,901	$	788,119	$	4,609,228

At September 30, 2021, 46.6% of the loan and lease portfolio bears interest at fixed rates and 53.4% at floating rates. In addition, $1.5 billion, or 32.7%, of the loan and lease portfolio has interest rate floors of which $1.3 billion were at the interest rate floor as of September 30, 2021. The expected life of our loan portfolio will differ from contractual maturities because borrowers may have the right to curtail or prepay their loans with or without penalties. Because a portion of the portfolio is accounted for under ASC 310-30, the carrying value is significantly affected by estimates and it is impracticable to allocate scheduled payments for those loans based on those estimates. Consequently, the tables presented include information limited to contractual maturities of the underlying loans. As of September 30, 2021 we had $1.4 billion in loans indexed to LIBOR.

Allowance for Loan and Lease Losses

The ALLL is determined by us on a quarterly basis, although we are engaged in monitoring the appropriate level of the allowance on a more frequent basis. The ALLL reflects management’s estimate of probable incurred credit losses inherent in the loan and lease portfolios. The computation includes elements of judgement and high levels of subjectivity.

Factors considered by us include, but are not limited to, actual loss experience, peer loss experience, changes in size and risk profile of the portfolio, identification of individual problem loan and lease situations which may affect a borrower’s ability to repay, and evaluation of the prevailing economic conditions. Changes in conditions may necessitate revision of the estimate in future periods.

We assess the ALLL based on three categories: (i) originated loans and leases, (ii) acquired non-impaired loans and leases, and (iii) acquired impaired loans with further credit deterioration after the acquisitions or our recapitalization.

Total ALLL was $60.6 million at September 30, 2021 compared to $66.3 million at December 31, 2020, a decrease of $5.7, or 8.7%. The decrease was primarily due to net charge-offs during the year.

Total ALLL to total loans and leases held for investment, net before ALLL, was 1.31% and 1.53% of total loans and leases at September 30, 2021 and December 31, 2020, respectively. The decrease was primarily driven by an increase in loans and leases, and net charge-offs exceeding provision during the year.

63

The following tables present an analysis of the allowance of the loan and lease losses for the periods presented (dollars in thousands):

	Commercial Real Estate			Residential Real Estate			Construction, Land Development, and Other Land			Commercial and Industrial			Paycheck Protection Program			Installment and Other			Lease Financing Receivables			Total
Balance at June 30, 2021	$	19,541		$	1,364		$	619		$	38,284		$	—		$	9		$	1,902		$	61,719
Provision/(recapture) for acquired   impaired loans		414			18			—			(63	)		—			—			—			369
Provision/(recapture) for acquired   non-impaired loans and leases		(932	)		(65	)		—			(564	)		—			(1	)		(38	)		(1,600	)
Provision/(recapture) for   originated loans		1,626			(178	)		(61	)		(591	)		—			(1	)		788			1,583
Total provision/(recapture)	$	1,108		$	(225	)	$	(61	)	$	(1,218	)	$	—		$	(2	)	$	750		$	352
Charge-offs for acquired   impaired loans		(4	)		—			—			—			—			—			—			(4	)
Charge-offs for acquired   non-impaired loans and leases		(50	)		—			—			(98	)		—			—			(10	)		(158	)
Charge-offs for originated loans   and leases		(510	)		(65	)		—			(1,358	)		—			—			(389	)		(2,322	)
Total charge-offs	$	(564	)	$	(65	)	$	—		$	(1,456	)	$	—		$	—		$	(399	)	$	(2,484	)
Recoveries for acquired   impaired loans		37			1			—			1			—			—			—			39
Recoveries for acquired   non-impaired loans and leases		25			1			—			234			—			—			44			304
Recoveries for originated   loans and leases		225			—			—			145			—			—			298			668
Total recoveries	$	287		$	2		$	—		$	380		$	—		$	—		$	342		$	1,011
Less: Net charge-offs		277			63			—			1,076			—			—			57			1,473
Acquired impaired loans		2,638			353			8			1,276			—			—			—			4,275
Acquired non-impaired   loans and leases		3,333			27			—			2,772			—			1			58			6,191
Originated loans and leases		14,401			696			550			31,942			—			6			2,537			50,132
Balance at September 30, 2021	$	20,372		$	1,076		$	558		$	35,990		$	—		$	7		$	2,595		$	60,598
Ending ALLL balance
Acquired impaired loans	$	2,638		$	353		$	8		$	1,276		$	—		$	—		$	—		$	4,275
Acquired non-impaired loans   and leases and originated   loans individually evaluated   for impairment		8,420			—			—			16,142			—			—			—			24,562
Acquired non-impaired loans   and leases and originated loans   and leases collectively evaluated   for impairment		9,314			723			550			18,572			—			7			2,595			31,761
Balance at September 30, 2021	$	20,372		$	1,076		$	558		$	35,990		$	—		$	7		$	2,595		$	60,598
Loans and leases ending balance
Acquired impaired loans	$	84,821		$	61,893		$	1,746		$	6,651		$	—		$	169		$	—		$	155,280
Acquired non-impaired loans   and leases and originated loans   individually evaluated for   impairment		45,563			3,946			—			37,689			—			—			—			87,198
Acquired non-impaired loans   and leases and originated loans   and leases collectively evaluated   for impairment		1,487,994			441,915			336,666			1,492,065			268,081			1,273			338,756			4,366,750
Total loans and leases at   September 30, 2021, gross	$	1,618,378		$	507,754		$	338,412		$	1,536,405		$	268,081		$	1,442		$	338,756		$	4,609,228
Ratio of net charge-offs   to average loans and leases   outstanding during the   period (annualized)
Acquired impaired loans		0.00	%		0.00	%		0.00	%		0.00	%		0.00	%		0.00	%		0.00	%		0.00	%
Acquired non-impaired loans   and leases		0.00	%		0.00	%		0.00	%		(0.01	)%		0.00	%		0.00	%		0.00	%		(0.01	)%
Originated loans and leases		0.02	%		0.01	%		0.00	%		0.11	%		0.00	%		0.00	%		0.00	%		0.14	%
Loans and leases ending balance   as a percentage of total loans   and leases, gross
Acquired impaired loans		1.84	%		1.34	%		0.04	%		0.14	%		0.00	%		0.00	%		0.00	%		3.37	%
Acquired non-impaired loans   and leases and originated loans   individually evaluated for   impairment		0.99	%		0.09	%		0.00	%		0.82	%		0.00	%		0.00	%		0.00	%		1.89	%
Acquired non-impaired loans   and leases and originated loans   and leases collectively evaluated   for impairment		32.28	%		9.59	%		7.30	%		32.37	%		5.82	%		0.03	%		7.35	%		94.74	%

64

	Commercial Real Estate			Residential Real Estate			Construction, Land Development, and Other Land			Commercial and Industrial			Paycheck Protection Program			Installment and Other			Lease Financing Receivables			Total
Balance at December 31, 2020	$	19,584		$	2,400		$	1,352		$	41,183		$	—		$	15		$	1,813		$	66,347
Provision/(recapture) for acquired   impaired loans		(24	)		(127	)		(31	)		(398	)		—			—			—			(580	)
Provision/(recapture) for acquired   non-impaired loans and leases		(69	)		(79	)		—			849			—			(2	)		(86	)		613
Provision/(recapture) for   originated loans		2,984			(1,051	)		(437	)		(225	)		—			(6	)		1,452			2,717
Total provision/(recapture)	$	2,891		$	(1,257	)	$	(468	)	$	226		$	—		$	(8	)	$	1,366		$	2,750
Charge-offs for acquired   impaired loans		(1,259	)		(11	)		(326	)		(88	)		—			—			—			(1,684	)
Charge-offs for acquired   non-impaired loans and leases		(130	)		—			—			(1,846	)		—			—			(69	)		(2,045	)
Charge-offs for originated loans   and leases		(1,255	)		(65	)		—			(4,238	)		—			—			(1,079	)		(6,637	)
Total charge-offs	$	(2,644	)	$	(76	)	$	(326	)	$	(6,172	)	$	—		$	—		$	(1,148	)	$	(10,366	)
Recoveries for acquired   impaired loans		47			5			—			24			—			—			-			76
Recoveries for acquired   non-impaired loans and leases		144			3			—			369			—			—			113			629
Recoveries for originated   loans and leases		350			1			—			360			—			—			451			1,162
Total recoveries	$	541		$	9		$	—		$	753		$	—		$	—		$	564		$	1,867
Less: Net charge-offs		2,103			67			326			5,419			—			—			584			8,499
Acquired impaired loans		2,638			353			8			1,276			—			—			—			4,275
Acquired non-impaired   loans and leases		3,333			27			—			2,772			—			1			58			6,191
Originated loans and leases		14,401			696			550			31,942			—			6			2,537			50,132
Balance at September 30, 2021	$	20,372		$	1,076		$	558		$	35,990		$	—		$	7		$	2,595		$	60,598
Ending ALLL balance
Acquired impaired loans	$	2,638		$	353		$	8		$	1,276		$	—		$	—		$	—		$	4,275
Acquired non-impaired loans   and leases and originated   loans individually evaluated   for impairment		8,420			—			—			16,142			—			—			—			24,562
Acquired non-impaired loans   and leases and originated loans   and leases collectively evaluated   for impairment		9,314			723			550			18,572			—			7			2,595			31,761
Balance at September 30, 2021	$	20,372		$	1,076		$	558		$	35,990		$	—		$	7		$	2,595		$	60,598
Loans and leases ending balance
Acquired impaired loans	$	84,821		$	61,893		$	1,746		$	6,651		$	—		$	169		$	—		$	155,280
Acquired non-impaired loans   and leases and originated loans   individually evaluated for   impairment		45,563			3,946			—			37,689			—			—			—			87,198
Acquired non-impaired loans   and leases and originated loans   and leases collectively evaluated   for impairment		1,487,994			441,915			336,666			1,492,065			268,081			1,273			338,756			4,366,750
Total loans and leases at    September 30, 2021, gross	$	1,618,378		$	507,754		$	338,412		$	1,536,405		$	268,081		$	1,442		$	338,756		$	4,609,228
Ratio of net charge-offs   to average loans and leases   outstanding during the   period (annualized)
Acquired impaired loans		0.04	%		0.00	%		0.01	%		0.00	%		0.00	%		0.00	%		0.00	%		0.05	%
Acquired non-impaired loans   and leases		0.00	%		0.00	%		0.00	%		0.04	%		0.00	%		0.00	%		0.00	%		0.04	%
Originated loans and leases		0.03	%		0.00	%		0.00	%		0.12	%		0.00	%		0.00	%		0.02	%		0.16	%
Loans and leases ending balance   as a percentage of total loans   and leases, gross
Acquired impaired loans		1.84	%		1.34	%		0.04	%		0.14	%		0.00	%		0.00	%		0.00	%		3.37	%
Acquired non-impaired loans   and leases and originated loans   individually evaluated for   impairment		0.99	%		0.09	%		0.00	%		0.82	%		0.00	%		0.00	%		0.00	%		1.89	%
Acquired non-impaired loans   and leases and originated loans   and leases collectively evaluated   for impairment		32.28	%		9.59	%		7.30	%		32.37	%		5.82	%		0.03	%		7.35	%		94.74	%

65

	Commercial Real Estate			Residential Real Estate			Construction, Land Development, and Other Land			Commercial and Industrial			Paycheck Protection Program			Installment and Other			Lease Financing Receivables			Total
Balance at June 30, 2020	$	14,110		$	3,741		$	1,491		$	30,108		$	—		$	36		$	1,814		$	51,300
Provision/(recapture) for acquired   impaired loans		947			(465	)		100			472			—			—			—			1,054
Provision/(recapture) for acquired   non-impaired loans and leases		1,170			20			(43	)		(1,214	)		—			—			(51	)		(118	)
Provision for originated loans		4,304			736			972			8,345			—			1			446			14,804
Total provision	$	6,421		$	291		$	1,029		$	7,603		$	—		$	1		$	395		$	15,740
Charge-offs for acquired   impaired loans		(314	)		—			—			(460	)		—			—			—			(774	)
Charge-offs for acquired   non-impaired loans and leases		(32	)		—			—			(169	)		—			—			(82	)		(283	)
Charge-offs for originated loans   and leases		(1,220	)		(250	)		(701	)		(2,625	)		—			—			(292	)		(5,088	)
Total charge-offs	$	(1,566	)	$	(250	)	$	(701	)	$	(3,254	)	$	—		$	—		$	(374	)	$	(6,145	)
Recoveries for acquired   impaired loans		1			2			—			12			—			—			—			15
Recoveries for acquired   non-impaired loans and leases		—			—			—			—			—			—			114			114
Recoveries for originated   loans and leases		18			6			53			71			—			—			86			234
Total recoveries	$	19		$	8		$	53		$	83		$	—		$	—		$	200		$	363
Less: Net charge-offs		1,547			242			648			3,171			—			—			174			5,782
Acquired impaired loans		2,009			763			87			1,877			—			—			—			4,736
Acquired non-impaired   loans and leases		2,411			106			43			3,902			—			3			165			6,630
Originated loans and leases		9,690			2,872			1,361			24,329			—			33			1,649			39,934
Balance at September 30, 2020	$	14,110		$	3,741		$	1,491		$	30,108		$	—		$	36		$	1,814		$	51,300
Ending ALLL balance
Acquired impaired loans	$	2,643		$	300		$	187		$	1,901		$	—		$	—		$	—		$	5,031
Acquired non-impaired loans   and leases and originated   loans individually evaluated   for impairment		4,516			77			—			10,189			—			—			—			14,782
Acquired non-impaired loans   and leases and originated loans   and leases collectively evaluated   for impairment		11,825			3,413			1,685			22,450			—			37			2,035			41,445
Balance at September 30, 2020	$	18,984		$	3,790		$	1,872		$	34,540		$	—		$	37		$	2,035		$	61,258
Loans and leases ending balance
Acquired impaired loans	$	117,114		$	84,197		$	4,804		$	10,489		$	—		$	214		$	—		$	216,818
Acquired non-impaired loans   and leases and originated loans   individually evaluated for   impairment		39,001			1,636			—			37,253			—			—			—			77,890
Acquired non-impaired loans   and leases and originated loans   and leases collectively evaluated   for impairment		1,191,740			547,563			234,230			1,281,067			622,191			2,929			200,089			4,079,809
Total loans and leases at   September 30, 2020, gross	$	1,347,855		$	633,396		$	239,034		$	1,328,809		$	622,191		$	3,143		$	200,089		$	4,374,517
Ratio of net charge-offs   to average loans and leases   outstanding during the   period (annualized)
Acquired impaired loans		0.03	%		0.00	%		0.00	%		0.04	%		0.00	%		0.00	%		0.00	%		0.07	%
Acquired non-impaired loans   and leases		0.00	%		0.00	%		0.00	%		0.02	%		0.00	%		0.00	%		0.00	%		0.02	%
Originated loans and leases		0.11	%		0.02	%		0.06	%		0.23	%		0.00	%		0.00	%		0.02	%		0.45	%
Loans and leases ending balance   as a percentage of total loans   and leases, gross
Acquired impaired loans		2.68	%		1.92	%		0.11	%		0.24	%		0.00	%		0.00	%		0.00	%		4.96	%
Acquired non-impaired loans   and leases and originated loans   individually evaluated for   impairment		0.89	%		0.04	%		0.00	%		0.85	%		0.00	%		0.00	%		0.00	%		1.78	%
Acquired non-impaired loans   and leases and originated loans   and leases collectively evaluated   for impairment		27.24	%		12.52	%		5.35	%		29.28	%		14.22	%		0.07	%		4.57	%		93.26	%

66

	Commercial Real Estate			Residential Real Estate			Construction, Land Development, and Other Land			Commercial and Industrial			Paycheck Protection Program			Installment and Other			Lease Financing Receivables			Total
Balance at December 31, 2019	$	7,965		$	1,990		$	610		$	19,377		$	—		$	50		$	1,944		$	31,936
Provision/(recapture) for acquired   impaired loans		2,013			(382	)		161			1,255			—			—			—			3,047
Provision/(recapture) for acquired   non-impaired loans and leases		2,662			111			(16	)		563			—			1			(194	)		3,127
Provision/(recapture) for originated loans		9,474			2,302			1,765			25,026			—			(14	)		986			39,539
Total provision/(recapture)	$	14,149		$	2,031		$	1,910		$	26,844		$	—		$	(13	)	$	792		$	45,713
Charge-offs for acquired   impaired loans		(328	)		—			—			(539	)		—			—			—			(867	)
Charge-offs for acquired   non-impaired loans and leases		(1,059	)		—			—			(714	)		—			—			(145	)		(1,918	)
Charge-offs for originated loans   and leases		(1,819	)		(259	)		(701	)		(10,804	)		—			—			(1,247	)		(14,830	)
Total charge-offs	$	(3,206	)	$	(259	)	$	(701	)	$	(12,057	)	$	—		$	—		$	(1,392	)	$	(17,615	)
Recoveries for acquired   impaired loans		21			7			—			47			—			—			—			75
Recoveries for acquired   non-impaired loans and leases		22			—			—			10			—			—			145			177
Recoveries for originated   loans and leases		33			21			53			319			—			—			546			972
Total recoveries	$	76		$	28		$	53		$	376		$	—		$	—		$	691		$	1,224
Less: Net charge-offs		3,130			231			648			11,681			—			—			701			16,391
Acquired impaired loans		2,643			300			187			1,901			—			—			—			5,031
Acquired non-impaired   loans and leases		3,549			126			—			2,519			—			3			146			6,343
Originated loans and leases		12,792			3,364			1,685			30,120			—			34			1,889			49,884
Balance at September 30, 2020	$	18,984		$	3,790		$	1,872		$	34,540		$	—		$	37		$	2,035		$	61,258
Ending ALLL balance
Acquired impaired loans	$	2,643		$	300		$	187		$	1,901		$	—		$	—		$	—		$	5,031
Acquired non-impaired loans   and leases and originated   loans individually evaluated   for impairment		4,516			77			—			10,189			—			—			—			14,782
Acquired non-impaired loans   and leases and originated loans   and leases collectively evaluated   for impairment		11,825			3,413			1,685			22,450			—			37			2,035			41,445
Balance at September 30, 2020	$	18,984		$	3,790		$	1,872		$	34,540		$	—		$	37		$	2,035		$	61,258
Loans and leases ending balance
Acquired impaired loans	$	117,114		$	84,197		$	4,804		$	10,489		$	—		$	214		$	—		$	216,818
Acquired non-impaired loans   and leases and originated loans   individually evaluated for   impairment		39,001			1,636			—			37,253			—			—			—			77,890
Acquired non-impaired loans   and leases and originated loans   and leases collectively evaluated   for impairment		1,191,740			547,563			234,230			1,281,067			622,191			2,929			200,089			4,079,809
Total loans and leases at   September 30,2020, gross	$	1,347,855		$	633,396		$	239,034		$	1,328,809		$	622,191		$	3,143		$	200,089		$	4,374,517
Ratio of net charge-offs   to average loans and leases   outstanding during the   period (annualized)
Acquired impaired loans		0.01	%		0.00	%		0.00	%		0.02	%		0.00	%		0.00	%		0.00	%		0.04	%
Acquired non-impaired loans   and leases		0.03	%		0.00	%		0.00	%		0.02	%		0.00	%		0.00	%		0.00	%		0.09	%
Originated loans and leases		0.06	%		0.01	%		0.02	%		0.35	%		0.00	%		0.00	%		0.02	%		0.69	%
Loans and leases ending balance   as a percentage of total loans   and leases, gross
Acquired impaired loans		2.68	%		1.92	%		0.11	%		0.24	%		0.00	%		0.00	%		0.00	%		4.96	%
Acquired non-impaired loans   and leases and originated loans   individually evaluated for   impairment		0.89	%		0.04	%		0.00	%		0.85	%		0.00	%		0.00	%		0.00	%		1.78	%
Acquired non-impaired loans   and leases and originated loans   and leases collectively evaluated   for impairment		27.24	%		12.52	%		5.35	%		29.28	%		14.22	%		0.07	%		4.57	%		93.26	%

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Non-Performing Assets

Non-performing loans and leases include loans and leases 90 days past due and still accruing and loans and leases accounted for on a non-accrual basis. Non-performing assets consist of non-performing loans and leases plus other real estate owned. Non-performing assets at September 30, 2021 and December 31, 2020 totaled $37.5 million and $47.5 million, respectively, a decrease of $10.0 million, or 21.0%, due to the decrease in non-accrual loans and a decrease in other real estate owned of $3.3 million. Total non-accrual loans and leases decreased by $6.6 million, or 16.1%, between December 31, 2020 and September 30, 2021. The U.S. government guaranteed portion of non-performing loans totaled $6.3 million at September 30, 2021 and $3.6 million at December 31, 2020.

Total OREO decreased from $6.3 million at December 31, 2020 to $3.0 million at September 30, 2021. The $3.3 decrease in OREO resulted mostly from sales and valuation adjustments.

Total accruing loans past due decreased from $14.6 million at December 31, 2020 to $8.2 million at September 30, 2021. This represents a decrease of $6.4 million, or 43.6%, and can be attributed to decreases in commercial and industrial loans. See Note 5 of our Unaudited Interim Condensed Consolidated Financial Statements, included in this report, for further information.

The following table sets forth the amounts of non-performing loans and leases, non-performing assets, and OREO at the dates indicated (dollars in thousands):

	September 30,			December 31,
	2021			2020
Non-performing assets:
Non-accrual loans and leases(1)(2)(3)	$	34,465		$	41,103
Past due loans and leases 90 days or more and still accruing interest		—			—
Total non-performing loans and leases		34,465			41,103
Other real estate owned		3,033			6,350
Total non-performing assets	$	37,498		$	47,453
Accruing troubled debt restructured loans		2,366			2,495
Total non-performing loans and leases as a percentage of total loans and    leases		0.75	%		0.95	%
Total non-performing assets as a percentage of total assets		0.56	%		0.74	%
Allowance for loan and lease losses as a percentage of non-performing    loans and leases		175.82	%		161.42	%
Non-performing assets guaranteed by U.S. government:
Non-accrual loans guaranteed	$	6,326		$	3,645
Past due loans 90 days or more and still accruing interest guaranteed		—			—
Total non-performing loans guaranteed	$	6,326		$	3,645
Accruing troubled debt restructured loans guaranteed		—			—
Total non-performing loans and leases not guaranteed as a percentage of    total loans and leases		0.61	%		0.86	%
Total non-performing assets not guaranteed as a percentage of total assets		0.46	%		0.69	%

(1)Includes $1.8 million and $5.6 million of non-accrual restructured loans at September 30, 2021 and December 31, 2020, respectively.

(2)For the nine months ended September 30, 2021, $1.5 million in interest income would have been recorded had non-accrual loans been current.

(3)For the nine months ended September 30, 2021, $170,000 in interest income would have been recorded had troubled debt restructurings included within non-accrual loans been current.

Acquired impaired loans (accounted for under ASC 310-30) that are delinquent and/or on non-accrual status continue to accrue income provided the respective pool in which those assets reside maintains a discount and recognizes accretion income. The aforementioned loans are characterized as performing loans based on contractual delinquency. If the pool no longer has a discount and accretion income can no longer be recognized, any loan within that pool on non-accrual status will be classified as non-accrual for presentation purposes.

Deposits

Our loan and lease growth is funded primarily through core deposits. We gather deposits primarily through each of our 45 branch locations in the Chicago metropolitan area and one branch in Brookfield, Wisconsin. Through our branch network, online, mobile and direct banking channels, we offer a variety of deposit products including demand deposit accounts, interest-bearing products, savings accounts, and certificates of deposit. We offer competitive online, mobile, and direct banking channels. Small businesses are a significant source of low cost deposits as they value convenience, flexibility, and access to local decision makers that are responsive to their needs.

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Total deposits at September 30, 2021 were $5.2 billion, representing an increase of $406.2 million, or 8.5%, compared to $4.8 billion at December 31, 2020, driven by an increase in non-interest bearing deposits. Non-interest-bearing deposits were $2.1 billion, or 41.1% of total deposits, at September 30, 2021, an increase of $355.1 million, or 20.1%, compared to $1.8 billion at December 31, 2020, or 37.1% of total deposits. Core deposits were 91.6% and 89.9% of total deposits at September 30, 2021 and December 31, 2020, respectively.

The following table shows the average balance amounts and the average contractual rates paid on our deposits for the periods indicated (dollars in thousands):

	For the Three Months Ended September 30, 2021					For the Three Months Ended September 30, 2020
	Average Balance		Average Rate			Average Balance		Average Rate
Non-interest-bearing demand deposits	$	2,106,189		0.00	%	$	1,742,787		0.00	%
Interest checking		653,543		0.14	%		565,917		0.16	%
Money market accounts		1,031,009		0.11	%		1,202,016		0.21	%
Savings		625,037		0.05	%		535,396		0.05	%
Time deposits (below $100,000)		276,486		0.17	%		363,956		0.62	%
Time deposits ($100,000 and above)		433,319		0.26	%		506,271		1.00	%
Total	$	5,125,583		0.08	%	$	4,916,343		0.22	%

	For the Nine Months Ended September 30, 2021					For the Nine Months Ended September 30, 2020
	Average Balance		Average Rate			Average Balance		Average Rate
Non-interest-bearing demand deposits	$	2,039,242		0.00	%	$	1,578,704		0.00	%
Interest checking		609,444		0.14	%		432,785		0.20	%
Money market accounts		1,068,770		0.12	%		1,126,588		0.45	%
Savings		603,366		0.05	%		509,001		0.05	%
Time deposits (below $100,000)		288,622		0.20	%		405,889		1.17	%
Time deposits ($100,000 and above)		446,086		0.37	%		580,530		1.53	%
Total	$	5,055,530		0.09	%	$	4,633,497		0.43	%

Our average cost of deposits was 0.08% during the three months ended September 30, 2021 compared to 0.22% during the three months ended September 30, 2020. Our average cost of deposits was 0.09% during the nine months ended September 30, 2021 compared to 0.43% during the nine months ended September 30, 2020. These decreases were principally attributed to lower rates on interest-bearing deposits as a result the interest rate environment and an improved deposit mix. Our average non-interest bearing deposits to total deposits ratios were 41.1% during the third quarter of 2021 compared to 35.4% during the third quarter of 2020. Our average non-interest bearing deposits to total deposits ratios were 40.3% during the nine months ended September 30, 2021 compared to 34.1% during the nine months ended September 30, 2020. We had no brokered time deposits and $35.0 million of brokered time deposits at September 30, 2021 and December 31, 2020, respectively. Our loan and lease to deposit ratio was 90.29% at September 30, 2021 compared to 91.51% at December 31, 2020.

The following table shows time deposits and other time deposits of $100,000 or more by time remaining until maturity (dollars in thousands):

	At September 30, 2021
	Time Deposits
Three months or less	$	142,218
Over three months through six months		140,180
Over six months through 12 months		98,946
Over 12 months		50,398
Total	$	431,742

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Borrowed Funds

In 2020, the Company issued $75.0 million in 6.00% fixed-to-floating subordinated notes that mature on July 1, 2030. The subordinated notes bear a fixed interest rate of 6.00% until July 1, 2025 and a floating interest rate equal to a benchmark rate, which is expected to be three-month Secured Overnight Financing Rate plus 588 basis points thereafter until maturity (or earlier redemption). The transaction resulted in debt issuance costs of approximately $1.7 million that are currently amortized over 10 years.

In addition to deposits, we also utilize FHLB advances as a supplementary funding source to finance our operations. The bank’s advances from the FHLB are collateralized by residential and multi-family real estate loans and securities. At September 30, 2021 and December 31, 2020, we had maximum borrowing capacity from the FHLB of $1.9 billion and $2.0 billion subject to the availability of collateral, respectively. At September 30, 2021, the Company had $355.0 million of FHLB advances with a maturities ranging from November 2021 to May 2022.

On April 21, 2020, the Bank entered into a Letter Agreement with the Federal Reserve Bank of Chicago that allows the Bank to access the PPPLF. Under the terms of the PPPLF, the Bank will pledge loans originated under the PPP to the Federal Reserve Bank of Chicago as collateral for available advances under the PPPLF. Advances under the PPPLF will be an amount equal to the aggregate principal amount of PPP loans pledged by Byline Bank, carry an interest rate of 35 basis points and mature on the maturity date of the PPP loans pledged as collateral for the advance. As of September 30, 2021, the PPPLF balance was $156.4 million with an interest rate of 0.35% with various maturity dates from April 2022 to February 2026.

The Company has the capacity to borrow funds from the discount window of the Federal Reserve System. There were no borrowings outstanding under the Federal Reserve Bank discount window line as of September 30, 2021 and December 31, 2020. The Company pledges loans as collateral for any borrowings under the Federal Reserve Bank discount window.

The following table sets forth certain information regarding our short-term borrowings at the dates and for the periods indicated (dollars in thousands):

	Nine Months Ended September 30,
	2021			2020
Federal Reserve Bank discount window borrowing:
Average balance outstanding	$	—		$	65,839
Maximum outstanding at any month-end period during the year		—			350,000
Balance outstanding at end of period		—			—
Weighted average interest rate during period	N/A				0.25	%
Weighted average interest rate at end of period	N/A			N/A
Federal Home Loan Bank advances:
Average balance outstanding	$	216,088		$	244,518
Maximum outstanding at any month-end period during the year		356,000			499,000
Balance outstanding at end of period		355,000			215,000
Weighted average interest rate during period		0.21	%		1.16	%
Weighted average interest rate at end of period		0.22	%		0.23	%
Paycheck Protection Program Liquidity Facility
Average balance outstanding	$	323,063		$	167,227
Maximum outstanding at any month-end period during the year		439,066			449,889
Balance outstanding at end of period		156,404			449,610
Weighted average interest rate during period		0.38	%		0.37	%
Weighted average interest rate at end of period		0.35	%		0.35	%
Line of credit:
Average balance outstanding	$	—		$	55
Maximum outstanding at any month-end period during the year		—			1,550
Balance outstanding at end of period		—			—
Weighted average interest rate during period		0.00	%		51.11	%
Weighted average interest rate at end of period(1)	N/A			N/A

(1)Our credit agreement with a third-party lender matures in October 2022. The line of credit bears interest at either the LIBOR Rate plus 195 basis points or the Prime Rate minus 75 basis points, not to be less than 2.00%, based on our election, which is required to be communicate to the lender at least three business days prior to the commencement of an interest period. If we fail to provide timely notification, the interest rate will be Prime Rate minus 75 basis points.

Customer Repurchase Agreements (Sweeps)

Securities sold under agreements to repurchase represent a demand deposit product offered to customers that sweep balances in excess of the FDIC insurance limit into overnight repurchase agreements. We pledge securities as collateral for the repurchase agreements.

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Securities sold under agreements to repurchase decreased by $14.3 million, from $42.0 million at December 31, 2020 to $27.7 million at September 30, 2021.

Liquidity

We manage liquidity based upon factors that include the amount of core deposits as a percentage of total deposits, the level of diversification of our funding sources, the amount of non-deposit funding used to fund assets, the availability of unused funding sources, off-balance sheet obligations, the availability of assets to be readily converted into cash without undue loss, the amount of cash and liquid securities we hold and the re-pricing characteristics and maturities of our assets when compared to the re-pricing characteristics of our liabilities, the ability to securitize and sell certain pools of assets and other factors.

Our liquidity needs are primarily met by cash and investment securities positions, growth in deposits, cash flow from amortizing loan portfolios, and borrowings from the FHLB. For additional information regarding our operating, investing, and financing cash flows, see Consolidated Statements of Cash Flows in our Unaudited Interim Condensed Consolidated Financial Statements included elsewhere in this report.

As of September 30, 2021, Byline Bank had maximum borrowing capacity from the FHLB of $1.9 billion and $622.3 million from the Federal Reserve Bank (“FRB”). As of September 30, 2021, Byline Bank had open FHLB advances of $355.0 million and open letters of credit of $20.6 million, leaving us with available aggregate borrowing capacity of $232.8 million. In addition, Byline Bank had uncommitted federal funds lines available of $115.0 million at September 30, 2021.

As of December 31, 2020, Byline Bank had maximum borrowing capacity from the FHLB of $2.0 billion and $874.7 million from the FRB. As of December 31, 2020, Byline Bank had open advances of $234.0 million and open letters of credit of $21.3 million, leaving us with available aggregate borrowing capacity of $751.9 million based on collateral pledged. In addition, Byline Bank had an uncommitted federal funds line available of $115.0 million at December 31, 2020.

On October 13, 2016, the Company entered into a $30.0 million revolving credit agreement with a correspondent bank. Through subsequent amendments, the revolving credit agreement was reduced to $15.0 million and the maturity was extended to October 7, 2022. The amended revolving line of credit bears interest at either the London Interbank Offered Rate (“LIBOR”) plus 195 basis points or the Prime Rate minus 75 basis points, based on the Company’s election, which is required to be communicated at least three business days prior to the commencement of an interest period. If the Company fails to provide timely notification, the interest rate will be Prime Rate minus 75 basis points. At September 30, 2021 and December 31, 2020, the line of credit had no outstanding balance.

There are regulatory limitations that affect the ability of Byline Bank to pay dividends to the Company. See Note 20 of our Consolidated Financial Statements, included in our Annual Report on Form 10-K for the year ended December 31, 2020 for additional information. Management believes that such limitations will not impact our ability to meet our ongoing short-term cash obligations.

We expect that our cash and liquidity resources will be generated by the operations of Byline Bank, which we expect to be sufficient to satisfy our liquidity and capital requirements for at least the next twelve months.

Capital Resources

Stockholders’ equity at September 30, 2021 was $824.4 million compared to $805.5 million at December 31, 2020, an increase of $19.0 million, or 2.4%. The increase was primarily driven by the increase in net income generated during the nine months ended September 30, 2021, offset by a decrease in accumulated other comprehensive income reflecting the unrealized losses in our available-for-sale securities portfolio and the increase of treasury shares under the share repurchase program.

The Company and Byline Bank are subject to various regulatory capital requirements administered by federal banking regulators. Failure to meet minimum capital requirements can initiate certain mandatory and possibly additional discretionary actions by federal banking regulators that, if undertaken, could have a direct material effect on our financial statements.

Under applicable bank regulatory capital requirements, each of the Company and Byline Bank must meet specific capital guidelines that involve quantitative measures of their assets, liabilities and certain off-balance sheet items as calculated under regulatory accounting practices. Byline Bank must also meet certain specific capital guidelines under the prompt corrective action framework. The capital amounts and classification are subject to qualitative judgments by the federal banking regulators about components, risk weightings and other factors. Quantitative measures established by regulation to ensure capital adequacy require the Company and Byline Bank to maintain minimum amounts and ratios of CET1 Capital, Tier 1 capital and total capital to risk-weighted assets and of Tier 1 capital to average consolidated assets, (referred to as the “leverage ratio”), as defined under these capital requirements.

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As of September 30, 2021, Byline Bank exceeded all applicable regulatory capital requirements and was considered “well-capitalized.” There have been no conditions or events since September 30, 2021 that management believes have changed Byline Bank’s classifications.

The regulatory capital ratios for the Company and Byline Bank to meet the minimum capital adequacy standards and for Byline Bank to be considered well capitalized under the prompt corrective action framework and the Company’s and Byline Bank’s actual capital amounts and ratios are set forth in the following tables as of the periods indicated (dollars in thousands):

	Actual					Minimum Capital Required					Required to be Considered Well Capitalized
September 30, 2021	Amount		Ratio			Amount		Ratio			Amount		Ratio
Total capital to risk weighted assets:
Company	$	821,646		14.78	%	$	444,596		8.00	%	N/A		N/A
Bank		747,862		13.50	%		443,176		8.00	%	$	553,971		10.00	%
Tier 1 capital to risk weighted assets:
Company	$	684,523		12.32	%	$	333,447		6.00	%	N/A		N/A
Bank		685,739		12.38	%		332,382		6.00	%	$	443,176		8.00	%
Common Equity Tier 1 (CET1) to risk weighted assets:
Company	$	629,085		11.32	%	$	250,085		4.50	%	N/A		N/A
Bank		685,739		12.38	%		249,287		4.50	%	$	360,081		6.50	%
Tier 1 capital to average assets:
Company	$	684,523		11.21	%	$	244,268		4.00	%	N/A		N/A
Bank		685,739		11.24	%		244,138		4.00	%	$	305,173		5.00	%

	Actual					Minimum Capital Required					Required to be Considered Well Capitalized
December 31, 2020	Amount		Ratio			Amount		Ratio			Amount		Ratio
Total capital to risk weighted assets:
Company	$	774,522		16.18	%	$	383,069		8.00	%	N/A		N/A
Bank		675,977		14.16	%		381,775		8.00	%	$	477,219		10.00	%
Tier 1 capital to risk weighted assets:
Company	$	639,564		13.36	%	$	287,302		6.00	%	N/A		N/A
Bank		616,219		12.91	%		286,331		6.00	%	$	381,775		8.00	%
Common Equity Tier 1 (CET1) to risk weighted assets:
Company	$	584,126		12.20	%	$	215,476		4.50	%	N/A		N/A
Bank		616,219		12.91	%		214,748		4.50	%	$	310,192		6.50	%
Tier 1 capital to average assets:
Company	$	639,564		11.12	%	$	230,056		4.00	%	N/A		N/A
Bank		616,219		10.72	%		229,870		4.00	%	$	287,337		5.00	%

The Company and Byline Bank must maintain a capital conservation buffer consisting of CET1 capital greater than 2.5% of risk-weighted assets above the required minimum risk-based capital levels in order to avoid limitations on paying dividends, repurchasing shares, and paying discretionary bonuses. The conservation buffers for the Company and Byline Bank exceed the minimum capital requirement as of September 30, 2021.

Provisions of state and federal banking regulations may limit, by statute, the amount of dividends that may be paid to the Company by Byline Bank without prior approval of Byline Bank’s regulatory agencies. The Company is economically dependent on the cash dividends received from Byline Bank. These dividends represent the primary cash flow from operating activities used to service obligations. For the nine months ended September 30, 2021 the Company received $16.0 million in cash dividends from Byline Bank. For the year ended December 31, 2020, the Company received $7.5 million in cash dividends from Byline Bank in order to pay the required interest on its outstanding junior subordinated debentures in connection with its trust preferred securities interest, dividends on the Series B preferred stock outstanding, and to fund other Company-related activities.

Under the Company’s board approved stock repurchase program, the Company repurchased an aggregate of 460,220 shares at an average price per share of $22.62 for the three months ended September 30, 2021 and 1,331,708 shares at an average price per share of $21.68 for the nine months ended September 30, 2021. The Company is authorized to purchase up to an aggregate of 2.5 million shares of the Company’s outstanding common stock. The program is in effect until December 31, 2022, unless terminated earlier.

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On October 28, 2021, the Company announced that its Board of Directors declared a cash dividend on its common stock of $0.09 per share. The dividend will paid on November 23, 2021 to stockholders of record on November 9, 2021.

Contractual Obligations

FHLB and PPPLF advances are fully described in Note 12 of our Unaudited Interim Condensed Consolidated Financial Statements, included elsewhere in this report. Operating lease obligations are in place for facilities and land on which banking facilities are located. See Note 8 of our Unaudited Interim Condensed Consolidated Financial Statements, included elsewhere in this report for additional information.

Off-Balance Sheet Items and Other Financing Arrangements

We are a party to financial instruments with off-balance sheet risk in the normal course of business to meet the financing needs of our customers. These financial instruments include commitments to extend credit, commercial letters of credit and standby letters of credit. Those instruments involve, to varying degrees, elements of credit and interest rate risk in excess of the amount recognized in the Consolidated Statements of Financial Condition. The contractual or notional amounts of those instruments reflect the extent of involvement we have in particular classes of financial instruments.

Commitments to extend credit are agreements to lend to a customer as long as there is no violation of any condition established in the contract. Commitments generally have fixed expiration dates or other termination clauses and may require payment of a fee. Since many of the commitments are expected to expire without being drawn upon, the total commitment amount does not necessarily represent future cash requirements. We evaluate each customer’s creditworthiness on a case-by-case basis. The amount of collateral obtained, if deemed necessary by Byline Bank upon extension of credit, is based on management’s credit evaluation of the counterparty. Collateral is primarily obtained in the form of commercial and residential real estate (including income producing commercial properties).

Letters of credit are conditional commitments issued by Byline Bank to guarantee the performance of a customer to a third-party. Those guarantees are primarily issued to support public and private borrowing arrangements, bond financing and similar transactions. The credit risk involved in issuing letters of credit is essentially the same as that involved in extending loan facilities to customers.

Commitments to make loans are generally made for periods of 90 days or less. The fixed rate loan commitments have interest rates ranging from 1.25% to 18.00% and maturities up to 2050. Variable rate loan commitments have interest rates ranging from 1.25% to 8.25% and maturities up to 2044.

Our exposure to credit loss in the event of non-performance by the other party to the financial instrument for commitments to extend credit and standby letters of credit is represented by the contractual or notional amount of those instruments. We use the same credit policies in making commitments and conditional obligations as for funded instruments. We do not anticipate any material losses as a result of the commitments and standby letters of credit.

We enter into interest rate swaps that are used to manage differences in the amount, timing, and duration of our known or expected cash receipts and its known or expected cash payments principally related to certain variable rate borrowings. We also enter into interest rate swaps with certain qualified borrowers to facilitate the borrowers’ risk management strategies and concurrently entered into mirror-image derivatives with a third party counterparty.

We recognize derivative financial instruments at fair value regardless of the purpose or intent for holding the instrument. We record derivative assets and derivative liabilities on the Consolidated Statements of Financial Condition within other assets and other liabilities, respectively. Because the derivative assets and liabilities recorded on the balance sheet at September 30, 2021 do not represent the amounts that may ultimately be paid under these contracts, these assets and liabilities are listed in the table below (dollars in thousands):

	September 30, 2021
			Fair Value
	Notional		Asset		Liability
Interest rate swaps designated as cash flow hedges—pay fixed, receive    floating	$	400,000	$	1,799	$	(192	)
Other interest rate swaps—pay fixed, receive floating		458,698		11,664		(12,148	)
Other credit derivatives		7,788		—		(8	)

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GAAP Reconciliation and Management Explanation of Non-GAAP Financial Measures

Some of the financial measures included in our “Selected Financial Data” are not measures of financial performance in accordance with GAAP. Our management uses the non‑GAAP financial measures set forth below in its analysis of our performance:

“Adjusted net income” and “adjusted diluted earnings per share” exclude certain significant items, which include incremental income tax benefit related to the reversal of the valuation allowance on our net deferred tax assets, incremental income tax benefit related to Illinois corporate income tax rate increases, incremental income tax expense or benefit related to federal corporate income tax reductions, impairment charges on assets held for sale, merger-related expenses, and core system conversion expenses adjusted for applicable income tax. Management believes the significant items are not indicative of or useful to measure the Company’s operating performance on an ongoing basis.

“Net interest income, fully taxable-equivalent” and “net interest margin, fully taxable-equivalent” are adjusted to reflect tax-exempt interest income on an equivalent before-tax basis using tax rates effective as of the end of the period. Management believes the metric provides useful comparable information to investors and that these measures may be useful for peer comparison.

“Adjusted non-interest expense” is non-interest expense excluding certain significant items, which include impairment charges on assets held for sale, merger-related expenses, and core system conversion expenses.

“Adjusted efficiency ratio” is adjusted non-interest expense less amortization of intangible assets divided by net interest income and non-interest income. Management believes the metric is an important measure of the Company’s operating performance on an ongoing basis.

“Adjusted non-interest expense to average assets” is adjusted non-interest expense divided by average assets. Management believes the metric is an important measure of the Company’s operating performance on an ongoing basis.

“Adjusted return on average stockholders’ equity” is adjusted net income divided by average stockholders’ equity. Management believes the metric is an important measure of the Company’s operating performance on an ongoing basis.

“Adjusted return on average assets” is adjusted net income divided by average assets. Management believes the metric is an important measure of the Company’s operating performance on an ongoing basis.

“Non-interest income to total revenues” is non-interest income divided by net interest income plus non-interest income. Management believes that it is standard practice in the industry to present non-interest income as a percentage of total revenue. Accordingly, management believes providing these measures may be useful for peer comparison.

“Pre‑tax pre‑provision net income” is pre‑tax income plus the provision for loan and lease losses. Management believes this metric is important due to the tax benefit resulting from the reversal of the net deferred tax asset valuation allowance, the decrease in the federal corporate income tax rate, and the increase in the Illinois state corporate income tax rate. The metric demonstrates income excluding the tax provision or benefit and the provision for loan and lease losses, and enables investors and others to assess the Company’s ability to generate capital to cover credit losses through a credit cycle.

“Adjusted pre-tax pre-provision net income” is pre-tax pre-provision net income excluding certain significant items, which include impairment charges on assets held for sale, merger-related expenses, and core system conversion expenses. Management believes the metric is an important measure of the Company’s operating performance on an ongoing basis.

“Pre‑tax pre‑provision return on average assets” is pre-tax income plus the provision for loan and lease losses, divided by average assets. Management believes this metric is important due to the change in tax expense or benefit resulting from the recent decrease in the federal corporate income tax rate and the recent increase in the Illinois state income tax rate. The ratio demonstrates profitability excluding the tax provision or benefit and excludes the provision for loan and lease losses. “Adjusted pre-tax pre-provision return on average assets” excludes certain significant items, which include impairment charges on assets held for sale, merger-related expenses, and core system conversion expenses.

“Tangible common equity” is defined as total stockholders’ equity reduced by preferred stock and goodwill and other intangible assets. Management does not consider servicing assets as an intangible asset for purposes of this calculation.

“Tangible assets” is defined as total assets reduced by goodwill and other intangible assets. Management does not consider servicing assets as an intangible asset for purposes of this calculation.

74

“Tangible book value per common share” is calculated as tangible common equity, which is stockholders’ equity reduced by preferred stock and goodwill and other intangible assets, divided by total shares of common stock outstanding. Management believes this metric is important due to the relative changes in the book value per share exclusive of changes in intangible assets.

“Tangible common equity to tangible assets” is calculated as tangible common equity divided by tangible assets, which is total assets reduced by goodwill and other intangible assets. Management believes this metric is important to investors and analysts interested in relative changes in the ratio of total stockholders’ equity to total assets, each exclusive of changes in intangible assets.

“Tangible net income available to common stockholders” is net income available to common stockholders excluding after-tax intangible asset amortization.

“Adjusted tangible net income available to common stockholders” is tangible net income available to common stockholders excluding certain significant items. Management believes the metric is an important measure of the Company’s operating performance on an ongoing basis.

“Return on average tangible common stockholders’ equity” is tangible net income available to common stockholders divided by average tangible common stockholders’ equity. Management believes the metric is an important measure of the Company’s operating performance on an ongoing basis.

“Adjusted return on average tangible common stockholders’ equity” is adjusted tangible net income available to common stockholders divided by average tangible common stockholders’ equity. Management believes the metric is an important measure of the Company’s operating performance on an ongoing basis.

We believe that these non‑GAAP financial measures provide useful information to its management and investors that is supplementary to our financial condition, results of operations and cash flows computed in accordance with GAAP; however, we acknowledge that our non‑GAAP financial measures have a number of limitations. As such, you should not view these disclosures 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.

Reconciliations of Non-GAAP Financial Measures

	As of or For the Three Months Ended September 30,						As of or For the Nine Months Ended September 30,
(dollars in thousands, except per share data)	2021			2020			2021			2020
Net income and earnings per share excluding   significant items
Reported Net Income	$	25,306		$	13,071		$	75,596		$	25,176
Significant items:
Impairment charges on assets held for sale		1,435			32			3,981			747
Tax benefit		(391	)		(9	)		(1,085	)		(208	)
Adjusted Net Income	$	26,350		$	13,094		$	78,492		$	25,715
Reported Diluted Earnings per Share	$	0.66		$	0.34		$	1.95		$	0.64
Significant items:
Impairment charges on assets held for sale		0.04			—			0.10			0.02
Tax benefit		(0.01	)		—			(0.03	)		(0.01	)
Adjusted Diluted Earnings per Share	$	0.69		$	0.34		$	2.02		$	0.65

75

	As of or For the Three Months Ended September 30,						As of or For the Nine Months Ended September 30,
(dollars in thousands, except per share data)	2021			2020			2021			2020
Adjusted non-interest expense:
Non-interest expense	$	44,180		$	41,687		$	126,003		$	122,401
Less significant items:
Impairment charges on assets held for sale		1,435			32			3,981			747
Adjusted non-interest expense	$	42,745		$	41,655		$	122,022		$	121,654
Adjusted non-interest expense excluding   amortization of intangible assets
Adjusted non-interest expense	$	42,745		$	41,655		$	122,022		$	121,654
Less: Amortization of intangible assets		1,738			1,947			5,335			5,732
Adjusted non-interest expense excluding   amortization of intangible assets	$	41,007		$	39,708		$	116,687		$	115,922
Pre-tax pre-provision net income:
Pre-tax income	$	33,808		$	18,331		$	101,145		$	35,214
Add: Provision for loan and lease losses		352			15,740			2,750			45,713
Pre-tax pre-provision net income	$	34,160		$	34,071		$	103,895		$	80,927
Adjusted pre-tax pre-provision net income:
Pre-tax pre-provision net income	$	34,160		$	34,071		$	103,895		$	80,927
Impairment charges on assets held for sale		1,435			32			3,981			747
Adjusted pre-tax pre-provision net income	$	35,595		$	34,103		$	107,876		$	81,674
Tax Equivalent Net Interest Income
Net interest income	$	59,845		$	53,524		$	174,659		$	158,958
Add: Tax-equivalent adjustment		264			222			783			552
Net interest income, fully taxable equivalent	$	60,109		$	53,746		$	175,442		$	159,510
Total revenues:
Net interest income	$	59,845		$	53,524		$	174,659		$	158,958
Add: non-interest income		18,495			22,234			55,239			44,370
Total revenues	$	78,340		$	75,758		$	229,898		$	203,328
Tangible common stockholders' equity:
Total stockholders' equity	$	824,418			794,696		$	824,418		$	794,696
Less: Preferred stock		10,438			10,438			10,438			10,438
Less: Goodwill and other intangibles		167,296			174,523			167,296			174,523
Tangible common stockholders' equity	$	646,684		$	609,735		$	646,684		$	609,735
Tangible assets:
Total assets	$	6,704,451		$	6,496,513		$	6,704,451		$	6,496,513
Less: Goodwill and other intangibles		167,296			174,523			167,296			174,523
Tangible assets	$	6,537,155		$	6,321,990		$	6,537,155		$	6,321,990
Average tangible common stockholders' equity:
Average total stockholders' equity	$	823,754		$	791,111		$	813,629		$	777,522
Less: Average preferred stock		10,438			10,438			10,438			10,438
Less: Average goodwill and other intangibles		168,140			175,443			169,934			177,426
Average tangible common stockholders' equity	$	645,176		$	605,230		$	633,257		$	589,658
Average tangible assets:
Average total assets	$	6,560,868		$	6,401,290		$	6,622,943		$	6,052,682
Less: Average goodwill and other intangibles		168,140			175,443			169,934			177,426
Average tangible assets	$	6,392,728		$	6,225,847		$	6,453,009		$	5,875,256
Tangible net income available to common stockholders:
Net income available to common stockholders	$	25,110		$	12,875		$	75,009		$	24,589
Add: After-tax intangible asset amortization		1,265			1,405			3,881			4,136
Tangible net income available to common   stockholders	$	26,375		$	14,280		$	78,890		$	28,725
Adjusted Tangible net income available to   common stockholders:
Tangible net income available to common   stockholders	$	26,375		$	14,280		$	78,890		$	28,725
Impairment charges on assets held for sale		1,435			32			3,981			747
Tax benefit on significant items		(391	)		(9	)		(1,085	)		(208	)
Adjusted tangible net income available to   common stockholders	$	27,419		$	14,303		$	81,786		$	29,264

76

	As of or For the Three Months Ended September 30,						As of or For the Nine Months Ended September 30,
(dollars in thousands, except share and per share data)	2021			2020			2021			2020
Pre-tax pre-provision return on average assets:
Pre-tax pre-provision net income	$	34,160		$	34,071		$	103,895		$	80,927
Average total assets		6,560,868			6,401,290			6,622,943			6,052,682
Pre-tax pre-provision return on   average assets		2.07	%		2.12	%		2.10	%		1.79	%
Adjusted pre-tax pre-provision return on average assets:
Adjusted pre-tax pre-provision net income	$	35,595		$	34,103		$	107,876		$	81,674
Average total assets		6,560,868			6,401,290			6,622,943			6,052,682
Adjusted pre-tax pre-provision return on   average assets:		2.15	%		2.12	%		2.18	%		1.80	%
Net interest margin, fully taxable equivalent
Net interest income, fully taxable equivalent	$	60,109		$	53,746		$	175,442		$	159,510
Total average interest-earning assets		6,076,065			5,916,554			6,135,051			5,573,945
Net interest margin, fully taxable equivalent		3.92	%		3.61	%		3.82	%		3.82	%
Non-interest income to total revenues:
Non-interest income	$	18,495		$	22,234		$	55,239		$	44,370
Total revenues		78,340			75,758			229,898			203,328
Non-interest income to total revenues		23.61	%		29.35	%		24.03	%		21.82	%
Adjusted non-interest expense to average assets:
Adjusted non-interest expense	$	42,745		$	41,655		$	122,022		$	121,654
Average total assets		6,560,868			6,401,290			6,622,943			6,052,682
Adjusted non-interest expense to average assets		2.58	%		2.59	%		2.46	%		2.68	%
Adjusted efficiency ratio:
Adjusted non-interest expense excluding   amortization of intangible assets	$	41,007		$	39,708		$	116,687		$	115,922
Total revenues		78,340			75,758			229,898			203,328
Adjusted efficiency ratio		52.35	%		52.42	%		50.76	%		57.01	%
Adjusted return on average assets:
Adjusted net income	$	26,350		$	13,094		$	78,492		$	25,715
Average total assets		6,560,868			6,401,290			6,622,943			6,052,682
Adjusted return on average assets		1.59	%		0.81	%		1.58	%		0.57	%
Adjusted return on average stockholders' equity:
Adjusted net income	$	26,350		$	13,094		$	78,492		$	25,715
Average stockholders' equity		823,754			791,111			813,629			777,522
Adjusted return on average stockholders' equity		12.69	%		6.58	%		12.90	%		4.42	%
Tangible common equity to tangible assets:
Tangible common equity	$	646,684		$	609,735		$	646,684		$	609,735
Tangible assets		6,537,155			6,321,990			6,537,155			6,321,990
Tangible common equity to tangible assets		9.89	%		9.64	%		9.89	%		9.64	%
Return on average tangible common   stockholders' equity:
Tangible net income available to   common stockholders	$	26,375		$	14,280		$	78,890		$	28,725
Average tangible common stockholders' equity		645,176			605,230			633,257			589,658
Return on average tangible common   stockholders' equity		16.22	%		9.39	%		16.66	%		6.51	%
Adjusted return on average tangible common   stockholders' equity:
Adjusted tangible net income available to   common stockholders	$	27,419		$	14,303		$	81,786		$	29,264
Average tangible common stockholders' equity		645,176			605,230			633,257			589,658
Adjusted return on average tangible common   stockholders' equity		16.86	%		9.40	%		17.27	%		6.63	%
Tangible book value per share:
Tangible common equity	$	646,684		$	609,735		$	646,684		$	609,735
Common shares outstanding		37,690,087			38,568,916			37,690,087			38,568,916
Tangible book value per share	$	17.16		$	15.81		$	17.16		$	15.81

77

Item 3. Quantitative and Qualitative Disclosures About Market Risk.

Our primary market risk is interest rate risk, which is defined as the risk of loss of net interest income or net interest margin because of changes in interest rates.

We seek to measure and manage the potential impact of interest rate risk. Interest rate risk occurs when interest-earning assets and interest-bearing liabilities mature or re-price at different times, on a different basis or in unequal amounts. Interest rate risk also arises when our assets, liabilities and off-balance sheet contracts each respond differently to changes in interest rates, including as a result of explicit and implicit provisions in agreements related to such assets and liabilities and in off-balance sheet contracts that alter the applicable interest rate and cash flow characteristics as interest rates change. The two primary examples of such provisions that we are exposed to are the duration and rate sensitivity associated with indeterminate-maturity deposits (e.g., non-interest-bearing checking accounts, negotiable order of withdrawal accounts, savings accounts and money market deposits accounts) and the rate of prepayment associated with fixed-rate lending and mortgage-backed securities. Interest rates may also affect loan demand, credit losses, and other items affecting earnings.

We are also exposed to interest rate risk through the retained portion of the U.S. government guaranteed loans we make and the related servicing rights. Our U.S. government guaranteed loan portfolio is comprised primarily of SBA 7(a) loans, virtually all of which are quarterly or monthly adjustable with the prime rate. The SBA portfolio reacts differently in a rising rate environment than our other non-guaranteed portfolios. Generally, when interest rates rise, the prepayments in the SBA portfolio tend to increase.

Our management of interest rate risk is overseen by our bank’s asset liability committee based on a risk management infrastructure approved by our board of directors that outlines reporting and measurement requirements. In particular, this infrastructure sets limits and management targets, calculated monthly, for various metrics, including our economic value sensitivity, our economic value of equity and net interest income simulations involving parallel shifts in interest rate curves, steepening and flattening yield curves, and various prepayment and deposit duration assumptions. Our risk management infrastructure also requires a periodic review of all key assumptions used, such as identifying appropriate interest rate scenarios, setting loan prepayment rates based on historical analysis, non-interest-bearing and interest-bearing demand deposit durations based on historical analysis and the targeted investment term of capital.

We manage the interest rate risk associated with our interest-bearing liabilities by managing the interest rates and tenors associated with our borrowings from the FHLB and PPPLF sources and deposits from our customers that we rely on for funding. In particular, from time to time we use special offers on deposits to alter the interest rates and tenors associated with our interest-bearing liabilities. We manage the interest rate risk associated with our interest-earning assets by managing the interest rates and tenors associated with our investment and loan portfolios, from time to time purchasing and selling investment securities.

We utilize interest rate derivatives to hedge our interest rate exposure on commercial loans when it meets our clients’ and Byline Bank’s needs. Typically, customer interest rate swaps are for terms of more than five years. As of September 30, 2021, we had a notional amount of $858.7 million of interest rate swaps outstanding, which includes customer swaps and those on Byline Bank’s balance sheet. The overall effectiveness of our hedging strategies is subject to market conditions, the quality of our execution, the accuracy of our valuation assumptions, the associated counterparty credit risk and changes in interest rates.

We do not engage in speculative trading activities relating to interest rates, foreign exchange rates, commodity prices, equities or credit.

We are also subject to credit risk. Credit risk is the risk that borrowers or counterparties will be unable or unwilling to repay their obligations in accordance with the underlying contractual terms. We manage and control credit risk in the loan and lease portfolio by adhering to well-defined underwriting criteria and account administration standards established by management. Written credit policies document underwriting standards, approval levels, exposure limits and other limits or standards deemed necessary and prudent. Portfolio diversification at the obligor, industry, product and/or geographic location levels is actively managed to mitigate concentration risk. In addition, credit risk management also includes an independent credit review process that assesses compliance with commercial, real estate and other credit policies, risk ratings, and other critical credit information. In addition to implementing risk management practices that are based upon established and sound lending practices, we adhere to sound credit principles. We understand and evaluate our customers’ borrowing needs and capacity to repay, in conjunction with their character and history.

Evaluation of Interest Rate Risk

We use a net interest income simulation model to measure and evaluate potential changes in our net interest income. We run various hypothetical interest rate scenarios at least monthly and compare these results against a scenario with no changes in interest rates. Our net interest income simulation model incorporates various assumptions, which we believe are reasonable but which may have a significant impact on results such as: (1) the timing of changes in interest rates, (2) shifts or rotations in the yield curve, (3) re-pricing characteristics for market-rate-sensitive instruments on and off balance sheet, (4) differing sensitivities of financial instruments due to differing underlying rate indices, (5) the effect of interest rate limitations on our assets, such as floors and caps, (6) the effect of our interest rate swaps and (7) overall growth and repayment rates and product mix of assets and liabilities. Because of limitations inherent in any approach used to measure interest rate risk, simulation results are not intended as a forecast of the actual effect of a change in market interest rates on our results but rather as a means to better plan and execute appropriate asset-liability management strategies and manage our interest rate risk.

78

Potential changes to our net interest income in hypothetical rising and declining rate scenarios calculated as of September 30, 2021 is presented in the following table. The projections assume (1) immediate, parallel shifts downward of the yield curve of 100 basis points and immediate, parallel shifts upward of the yield curve of 100, 200 and 300 basis points and (2) gradual shift downward of 100 basis points over 12 months and gradual shifts upward of 100 and 200 basis points over 12 months. In the current interest rate environment, a downward shift of the yield curve of 200, and 300 basis points does not provide us with meaningful results. In a downward parallel shift of the yield curve, interest rates at the short-end of the yield curve are not modeled to decline any further than 0%. For the dynamic balance sheet and rate shift scenarios, we assume interest rates follow a forward yield curve and then increase it by 1/12th of the total change in rates each month for twelve months.

	Immediate Shifts
Twelve Months Ending	+300 basis points			+200 basis points			+100 basis points			-100 basis points
As of September 30, 2022
Percentage change		23.7	%		15.1	%		5.7	%		-3.2	%
Dollar amount	$	250,614		$	233,319		$	214,164		$	196,190
As of September 30, 2023
Percentage change		34.7	%		22.8	%		9.7	%		-6.8	%
Dollar amount	$	276,160		$	251,626		$	224,746		$	191,116

For dynamic balance sheet and rate shifts, a gradual shift downward of 100 basis points would result in a 1.8% decrease in net interest income, and a gradual shift upwards of 100 and 200 basis points would result in 2.9% and 7.5% increases to net interest income, respectively, over the next 12 months.

The results of this simulation analysis are hypothetical, and a variety of factors might cause actual results to differ substantially from what is depicted. For example, if the timing and magnitude of interest rate changes differ from those projected, our net interest income might vary significantly. Non-parallel yield curve shifts such as a flattening or steepening of the yield curve or changes in interest rate spreads, would also cause our net interest income to be different from that depicted. An increasing interest rate environment could reduce projected net interest income if deposits and other short-term liabilities re-price faster than expected or faster than our assets re-price. Actual results could differ from those projected if we grow assets and liabilities faster or slower than estimated, if we experience substantially different repayment speeds in our loan portfolio than those assumed in the simulation model, if we experience a net outflow of deposit liabilities or if our mix of assets and liabilities otherwise changes.

These simulation results do not contemplate all the actions that we may undertake in response to potential or actual changes in interest rates, such as changes to our loan, investment, deposit, funding or hedging strategies.

Item 4. Controls and Procedures.

The Company’s management, including our Chief Executive Officer and our Chief Financial Officer, have evaluated the effectiveness of our “disclosure controls and procedures” (as defined in Rules 13a-15(e) and 15d-15(e) under the Securities Exchange Act of 1934 (the “Exchange Act”)), as of the end of the period covered by this report. Based on such evaluation, our Chief Executive Officer and our Chief Financial Officer have concluded that, as of September 30, 2021, the Company’s disclosure controls and procedures were effective to provide reasonable assurance that the information required to be disclosed by the Company in the reports it files or submits under the Exchange Act is recorded, processed, summarized and reported within the time periods specified in the rules and forms of the SEC and is accumulated and communicated to the Company’s management, including our Chief Executive Officer and our Chief Financial Officer, as appropriate, to allow timely decisions regarding required disclosure.

Changes in Internal Control Over Financial Reporting

There was no change in our internal control over financial reporting during the quarter ended September 30, 2021, that has materially affected, or is reasonably likely to materially affect, our internal control over financial reporting.

The design of any system of controls and procedures is based in part upon certain assumptions about the likelihood of future events. There can be no assurance that any design will succeed in achieving its stated goals under all potential future conditions, regardless of how remote.

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PART II-OTHER INFORMATION

Item 1. Legal Proceedings.

We operate in a highly regulated environment. From time to time we are a party to various litigation matters incidental to the conduct of our business. We are not presently party to any legal proceedings the resolution of which we believe would have a material adverse effect on our business, prospects, financial condition, liquidity, results of operation, cash flows or capital levels.

Item 1A. Risk Factors.

There have been no material changes to the risk factors previously disclosed in the “Risk Factors” section included in our Form 10-K for our fiscal year ended December 31, 2020 that was filed with the SEC on March 4, 2021.

Item 2. Unregistered Sales of Equity Securities and Use of Proceeds.

On December 10, 2020, we announced that our Board of Directors approved a stock repurchase program authorizing the purchase of up to an aggregate of 1,250,000 shares of our outstanding common stock. On July 27, 2021, the Company's Board of Directors authorized an expansion of its current stock repurchase program. Under the extended program, the Company is authorized to repurchase an additional 1,250,000 shares of the Company's outstanding common stock. The shares may, at the discretion of management, be repurchased from time to time in open market purchases as market conditions warrant or in privately negotiated transactions. We are not obligated to purchase any shares under the program, and the program may be discontinued at any time. The actual timing, number and share price of shares purchased under the repurchase program will be determined by the Company at its discretion and will depend on a number of factors, including the market price of the Company’s stock, general market and economic conditions and applicable legal requirements. The program will be in effect until December 31, 2022 unless terminated earlier. The table below includes information regarding purchases of our common stock pursuant to the repurchase program during the quarter ended September 30, 2021.

Issuer Purchases of Equity Securities
							Maximum Number of
	Total		Average		Total Number of Shares		Shares that
	Number of		Price		Purchased as Part of a		May Yet Be
	Shares		Paid per		Publicly Announced		Purchased Under the
	Purchased(1)		Share		Plan or Program		Plan or Program
July 1 - July 31, 2021		378,512	$	22.56		378,512		1,250,000
August 1 - August 31, 2021		1,268		25.17		—		1,250,000
September 1 - September 30, 2021		81,948		22.92		81,708		1,168,292
Total		461,728	$	22.63		460,220

(1)Also includes 1,508 shares acquired pursuant to the Company’s 2017 Omnibus Incentive Compensation Plan. Under the terms of compensation plan, the Company can accept previously owned shares of common stock to be surrendered to satisfy tax withholding obligations associated with the vesting of restricted stock.

Item 3. Defaults Upon Senior Securities.

None.

Item 4. Mine Safety Disclosures.

Not applicable.

Item 5. Other Information.

None.

80

Item 6. Exhibits.

	EXHIBIT
Number	Description
3.1	Amended and Restated Certificate of Incorporation (filed as Exhibit 3.1 to the Company’s Registration Statement on Form S-1, as amended (File No. 333-218362) filed on June 19, 2017 and incorporated herein by reference)
3.2	Amended and Restated Bylaws (filed as Exhibit 3.2 to the Company’s Registration Statement on Form S-1, as amended (File No. 333-218362) filed on June 19, 2017 and incorporated herein by reference)
3.3	Certificate of Designations of 7.50% Fixed-to-Floating Noncumulative Perpetual Preferred Stock, Series B (filed as Exhibit 3.4 to the Company’s Registration Statement on Form S-1, as amended (File No. 333-218362) filed on June 19, 2017 and incorporated herein by reference)
4.1	Certain instruments defining the rights of holders of long-term debt securities of the registrant and its subsidiaries are omitted pursuant to Item 601(b)(4)(iii) of Regulation S-K. The registrant hereby undertakes to furnish to the SEC, upon request, copies of any such instruments.
31.1	Certification of the Chief Executive Officer Pursuant to Rules 13a-14(a) and 15d-14(a) of the Securities Exchange Act of 1934, and Section 302 of the Sarbanes-Oxley Act of 2002
31.2	Certification of the Chief Financial Officer Pursuant to Rules 13a-14(a) and 15d-14(a) of the Securities Exchange Act of 1934, and Section 302 of the Sarbanes-Oxley Act of 2002
32.1(a)	Certification of Chief Executive Officer and Chief Financial Officer pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002
101	Financial information from the Company’s Quarterly Report on Form 10-Q for the quarterly period ended September 30, 2021, formatted in Inline XBRL interactive data files pursuant to Rule 405 of Regulation S-T: (i) Consolidated Statements of Condition; (ii) Consolidated Statements of Operations; (iii) Consolidated Statements of Comprehensive Income (Loss); (iv) Consolidated Statements of Changes in Stockholders’ Equity; (v) Consolidated Statements of Cash Flows; and (vi) Notes to Consolidated Financial Statements
104	Cover Page Interactive Data File – the cover page XBRL tags are embedded with the Inline XBRL document.

(a)This exhibit shall not be deemed “filed” for purposes of Section 18 of the Exchange Act, or otherwise subject to the liability of that section, and shall not be deemed to be incorporated by reference into any filing under the Securities Act or the Exchange Act.

81

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.

	Byline Bancorp, Inc.
Date: November 5, 2021	By:	/s/	Roberto R. Herencia
			Roberto R. Herencia
			Chief Executive Officer
			(Principal Executive Officer)
Date: November 5, 2021	By:	/s/	Lindsay Corby
			Lindsay Corby
			Executive Vice President and Chief Financial Officer
			(Principal Financial and Accounting Officer)

82

EX-31.1

EXHIBIT 31.1

Certification of Chief Executive Officer

Pursuant to Rules 13a-14(a) and 15d-14(a) of the Securities Exchange Act of 1934

and Section 302 of the Sarbanes-Oxley Act of 2002

I, Roberto R. Herencia, certify that:

1. I have reviewed this quarterly report on Form 10-Q (the “Report”) of Byline Bancorp, Inc. (the “Registrant”):

2. Based on my knowledge, this Report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this Report;

3. Based on my knowledge, the financial statements, and other financial information included in this Report, fairly present in all material respects the financial condition, results of operations and cash flows of the Registrant as of, and for, the periods presented in this Report;

4. The Registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the Registrant and have:

a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the Registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this Report is being prepared;

b) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

c) Evaluated the effectiveness of the Registrant’s disclosure controls and procedures and presented in this Report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this Report based on such evaluation; and

d) Disclosed in this Report any change in the Registrant’s internal control over financial reporting that occurred during the Registrant’s most recent fiscal quarter (the Registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the Registrant’s internal control over financial reporting; and

5. The Registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the Registrant’s auditors and the audit committee of the Registrant’s board of directors (or persons performing the equivalent functions):

a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the Registrant’s ability to record, process, summarize and report financial information; and

b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the Registrant’s internal control over financial reporting.

Date: November 5, 2021
	/s/ Roberto R. Herencia
	Roberto R. Herencia
	Chief Executive Officer
	(Principal Executive Officer)

EX-31.2

EXHIBIT 31.2

Certification of Chief Financial Officer

Pursuant to Rules 13a-14(a) and 15d-14(a) of the Securities Exchange Act of 1934

and Section 302 of the Sarbanes-Oxley Act of 2002

I, Lindsay Corby, certify that:

1. I have reviewed this quarterly report on Form 10-Q (the “Report”) of Byline Bancorp, Inc. (the “Registrant”):

2. Based on my knowledge, this Report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this Report;

3. Based on my knowledge, the financial statements, and other financial information included in this Report, fairly present in all material respects the financial condition, results of operations and cash flows of the Registrant as of, and for, the periods presented in this Report;

4. The Registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the Registrant and have:

a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the Registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this Report is being prepared;

b) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

c) Evaluated the effectiveness of the Registrant’s disclosure controls and procedures and presented in this Report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this Report, based on such evaluation; and

d) Disclosed in this Report any change in the Registrant’s internal control over financial reporting that occurred during the Registrant’s most recent fiscal quarter (the Registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the Registrant’s internal control over financial reporting; and

5. The Registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the Registrant’s auditors and the audit committee of the Registrant’s board of directors (or persons performing the equivalent functions):

a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the Registrant’s ability to record, process, summarize and report financial information; and

b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the Registrant’s internal control over financial reporting.

Date: November 5, 2021
	/s/ Lindsay Corby
	Lindsay Corby
	Executive Vice President and Chief Financial Officer
	(Principal Financial Officer)

EX-32.1

EXHIBIT 32.1

CERTIFICATIONS PURSUANT TO

18 U.S.C. SECTION 1350,

AS ADOPTED PURSUANT TO

SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002

In connection with the Quarterly Report of Byline Bancorp, Inc. (the “Company”) on Form 10-Q for the period ended September 30, 2021 as filed with the Securities and Exchange Commission on the date hereof (the “Report”), the undersigned, the Chief Executive Officer and Chief Financial Officer of the Company, each hereby certify, pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that, to his or her knowledge:

1. The Report fully complies with the requirements of Sections 13(a) or 15(d) of the Securities Exchange Act of 1934; and

2. The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.

/s/	Roberto R. Herencia
	Roberto R. Herencia
	Chief Executive Officer
	(Principal Executive Officer)
	November 5, 2021
/s/	Lindsay Corby
	Lindsay Corby
	Executive Vice President & Chief Financial Officer
	(Principal Financial Officer)
	November 5, 2021

XML

Document And Entity Information - shares	9 Months Ended
	Sep. 30, 2021	Nov. 02, 2021
Cover [Abstract]
Document Type	10-Q
Amendment Flag	false
Document Period End Date	Sep. 30, 2021
Document Fiscal Year Focus	2021
Document Fiscal Period Focus	Q3
Trading Symbol	BY
Entity Registrant Name	Byline Bancorp, Inc.
Entity Central Index Key	0001702750
Current Fiscal Year End Date	--12-31
Entity Filer Category	Accelerated Filer
Entity Small Business	false
Entity Emerging Growth Company	true
Entity Ex Transition Period	false
Entity Interactive Data Current	Yes
Document Quarterly Report	true
Document Transition Report	false
Entity Current Reporting Status	Yes
Entity Shell Company	false
Entity File Number	001-38139
Entity Tax Identification Number	36-3012593
Entity Incorporation, State or Country Code	DE
Entity Address, Address Line One	180 North LaSalle Street
Entity Address, Address Line Two	Suite 300
Entity Address, City or Town	Chicago
Entity Address, State or Province	IL
Entity Address, Postal Zip Code	60601
City Area Code	773
Local Phone Number	244-7000
Entity Common Stock, Shares Outstanding		37,711,380
Title of each class	Common Stock
Name of each exchange on which registered	NYSE

XML

CONDENSED CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION (UNAUDITED) - USD ($) $ in Thousands	Sep. 30, 2021	Dec. 31, 2020
ASSETS
Cash and due from banks	$ 46,900	$ 41,432
Interest bearing deposits with other banks	95,978	41,988
Cash and cash equivalents	142,878	83,420
Equity and other securities, at fair value	10,299	8,764
Securities available-for-sale, at fair value	1,427,605	1,447,230
Securities held-to-maturity, at amortized cost (fair value at September 30, 2021 -$4,033, December 31,2020 -$4,573)	3,887	4,395
Restricted stock, at cost	15,927	10,507
Loans held for sale	48,372	7,924
Loans and leases:
Loans and leases	4,609,228	4,340,535
Allowance for loan and lease losses	(60,598)	(66,347)
Net loans and leases	4,548,630	4,274,188
Servicing assets, at fair value	23,597	22,042
Premises and equipment, net	76,995	86,728
Other real estate owned, net	3,033	6,350
Goodwill and other intangible assets, net	167,296	172,631
Bank-owned life insurance	60,992	10,009
Deferred tax assets, net	45,165	40,181
Accrued interest receivable and other assets	129,775	216,283
Total assets	6,704,451	6,390,652
LIABILITIES
Non-interest-bearing demand deposits	2,117,749	1,762,676
Interest-bearing deposits	3,040,529	2,989,355
Total deposits	5,158,278	4,752,031
Other borrowings	539,119	647,901
Subordinated notes, net	73,473	73,342
Junior subordinated debentures issued to capital trusts, net	36,796	36,451
Accrued interest payable and other liabilities	72,367	75,463
Total liabilities	5,880,033	5,585,188
STOCKHOLDERS’ EQUITY
Preferred stock	10,438	10,438
Common stock	386	384
Additional paid-in capital	592,192	587,165
Retained earnings	258,077	191,098
Treasury stock, at cost	(31,161)	(1,668)
Accumulated other comprehensive income (loss), net of tax	(5,514)	18,047
Total stockholders’ equity	824,418	805,464
Total liabilities and stockholders’ equity	$ 6,704,451	$ 6,390,652
Preferred shares par value	$ 0.01	$ 0.01
Preferred shares authorized	50,000	50,000
Preferred shares issued	10,438	10,438
Preferred shares outstanding	10,438	10,438
Common shares par value	$ 0.01	$ 0.01
Common shares authorized	150,000,000	150,000,000
Common shares issued	39,170,541	38,736,540
Common shares outstanding	37,690,087	38,618,054
Treasury common shares	1,480,454	118,486

XML

CONDENSED CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION (UNAUDITED) (Parenthetical) - USD ($) $ in Thousands	Sep. 30, 2021	Dec. 31, 2020
Statement Of Financial Position [Abstract]
Securities held-to-maturity, fair value	$ 4,033	$ 4,573

XML

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2021	Sep. 30, 2020	Sep. 30, 2021	Sep. 30, 2020
INTEREST AND DIVIDEND INCOME
Interest and fees on loans and leases	$ 56,291	$ 51,036	$ 164,423	$ 155,347
Interest on securities	5,534	7,070	17,982	22,616
Other interest and dividend income	947	128	1,837	1,342
Total interest and dividend income	62,772	58,234	184,242	179,305
INTEREST EXPENSE
Deposits	986	2,760	3,465	14,810
Other borrowings	349	465	1,333	2,838
Subordinated notes and debentures	1,592	1,485	4,785	2,699
Total interest expense	2,927	4,710	9,583	20,347
Net interest income	59,845	53,524	174,659	158,958
PROVISION FOR LOAN AND LEASE LOSSES	352	15,740	2,750	45,713
Net interest income after provision for loan and lease losses	59,493	37,784	171,909	113,245
NON-INTEREST INCOME
Total non-interest income	18,495	22,234	55,239	44,370
ATM and interchange fees	1,201	1,028	3,257	3,089
Net realized gains on securities available-for-sale	130	1,037	1,456	2,412
Change in fair value of equity securities, net	(275)	154	36	301
Net gains on sales of loans	12,761	12,671	33,350	23,900
Wealth management and trust income	815	693	2,305	1,970
Other non-interest income	1,302	990	4,383	1,946
NON-INTEREST EXPENSE
Salaries and employee benefits	25,978	23,126	72,372	67,197
Occupancy and equipment expense, net	4,982	5,220	15,617	16,103
Loan and lease related expenses	1,175	2,053	3,629	4,631
Legal, audit and other professional fees	2,710	2,390	7,822	6,802
Data processing	3,108	2,661	8,710	8,152
Net loss recognized on other real estate owned and other related expenses	42	349	1,052	1,324
Other intangible assets amortization expense	1,738	1,947	5,335	5,732
Other non-interest expense	4,447	3,941	11,466	12,460
Total non-interest expense	44,180	41,687	126,003	122,401
INCOME BEFORE PROVISION FOR INCOME TAXES	33,808	18,331	101,145	35,214
PROVISION FOR INCOME TAXES	8,502	5,260	25,549	10,038
NET INCOME	25,306	13,071	75,596	25,176
Dividends on preferred shares	196	196	587	587
INCOME AVAILABLE TO COMMON STOCKHOLDERS	$ 25,110	$ 12,875	$ 75,009	$ 24,589
EARNINGS PER COMMON SHARE
Basic	$ 0.68	$ 0.34	$ 1.99	$ 0.65
Diluted	$ 0.66	$ 0.34	$ 1.95	$ 0.64
Fees and Service Charges on Deposits [Member]
NON-INTEREST INCOME
Total non-interest income	$ 1,867	$ 1,603	$ 5,299	$ 4,731
Loan Servicing Revenue [Member]
NON-INTEREST INCOME
Total non-interest income	3,344	2,936	9,301	8,674
Loan Servicing Asset Revaluation [Member]
NON-INTEREST INCOME
Total non-interest income	$ (2,650)	$ 1,122	$ (4,148)	$ (2,653)

XML

CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) (UNAUDITED) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2021	Sep. 30, 2020	Sep. 30, 2021	Sep. 30, 2020
Statement Of Other Comprehensive Income [Abstract]
Net income	$ 25,306	$ 13,071	$ 75,596	$ 25,176
Securities available-for-sale
Unrealized holding gains (losses) arising during the period	(8,439)	33	(32,876)	30,100
Reclassification adjustments for net gains included in net income	(130)	(1,037)	(1,456)	(2,412)
Tax effect	2,387	280	9,560	(7,710)
Net of tax	(6,182)	(724)	(24,772)	19,978
Cash flow hedges
Unrealized holding gains arising during the period	651		1,606
Reclassification adjustments for net losses included in net income	29	22	71	64
Tax effect	(189)	(7)	(466)	(18)
Net of tax	491	15	1,211	46
Total other comprehensive income (loss)	(5,691)	(709)	(23,561)	20,024
Comprehensive income (loss)	$ 19,615	$ 12,362	$ 52,035	$ 45,200

XML

CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS EQUITY (UNAUDITED) - USD ($) $ in Thousands	Total	Preferred Stock	Common Stock	Additional Paid-In Capital	Retained Earnings	Treasury Stock	Accumulated Other Comprehensive Income (Loss)
Beginning balance at Dec. 31, 2019	$ 750,115	$ 10,438	$ 379	$ 580,965	$ 159,033		$ (700)
Beginning balance, shares at Dec. 31, 2019		10,438	38,256,500
Net income	2,966				2,966
Other comprehensive income (loss), net of tax	11,048						11,048
Issuance of common stock upon exercise of stock options	677		$ 1	676
Issuance of common stock upon exercise of stock options, shares			55,402
Restricted stock activity, shares			174,036
Issuance of common stock in connection with employee stock purchase plan	268			268
Issuance of common stock in connection with employee stock purchase plan, shares			15,569
Cash dividends declared on preferred stock	(196)				(196)
Cash dividends declared on common stock	(1,151)				(1,151)
Repurchase of common stock	(1,668)					$ (1,668)
Repurchase of common stock, shares			(118,486)
Share-based compensation expense	608			608
Ending balance at Mar. 31, 2020	762,667	$ 10,438	$ 380	582,517	160,652	(1,668)	10,348
Ending balance, shares at Mar. 31, 2020		10,438	38,383,021
Beginning balance at Dec. 31, 2019	750,115	$ 10,438	$ 379	580,965	159,033		(700)
Beginning balance, shares at Dec. 31, 2019		10,438	38,256,500
Net income	25,176
Other comprehensive income (loss), net of tax	20,024						20,024
Ending balance at Sep. 30, 2020	794,696	$ 10,438	$ 383	586,057	180,162	(1,668)	19,324
Ending balance, shares at Sep. 30, 2020		10,438	38,568,916
Beginning balance at Dec. 31, 2019	750,115	$ 10,438	$ 379	580,965	159,033		(700)
Beginning balance, shares at Dec. 31, 2019		10,438	38,256,500
Ending balance at Dec. 31, 2020	805,464	$ 10,438	$ 384	587,165	191,098	(1,668)	18,047
Ending balance, shares at Dec. 31, 2020		10,438	38,618,054
Beginning balance at Mar. 31, 2020	762,667	$ 10,438	$ 380	582,517	160,652	(1,668)	10,348
Beginning balance, shares at Mar. 31, 2020		10,438	38,383,021
Net income	9,139				9,139
Other comprehensive income (loss), net of tax	9,685						9,685
Issuance of common stock upon exercise of stock options	56			56
Issuance of common stock upon exercise of stock options, shares			5,196
Restricted stock activity			$ 1	(1)
Cash dividends declared on preferred stock	(195)				(195)
Cash dividends declared on common stock	(1,152)				(1,152)
Share-based compensation expense	735			735
Ending balance at Jun. 30, 2020	780,935	$ 10,438	$ 381	583,307	168,444	(1,668)	20,033
Ending balance, shares at Jun. 30, 2020		10,438	38,388,217
Net income	13,071				13,071
Other comprehensive income (loss), net of tax	(709)						(709)
Issuance of common stock upon exercise of stock options	1,815		$ 1	1,814
Issuance of common stock upon exercise of stock options, shares			165,375
Restricted stock activity, shares			5,886
Issuance of common stock in connection with employee stock purchase plan	269		$ 1	268
Issuance of common stock in connection with employee stock purchase plan, shares			21,210
Cash dividends declared on preferred stock	(196)				(196)
Cash dividends declared on common stock	(1,157)				(1,157)
Share-based compensation expense	668			668
Ending balance at Sep. 30, 2020	794,696	$ 10,438	$ 383	586,057	180,162	(1,668)	19,324
Ending balance, shares at Sep. 30, 2020		10,438	38,568,916
Net income	12,291				12,291
Other comprehensive income (loss), net of tax	(1,277)						(1,277)
Issuance of common stock upon exercise of stock options	541		$ 1	540
Issuance of common stock upon exercise of stock options, shares			49,138
Cash dividends declared on preferred stock	(196)				(196)
Cash dividends declared on common stock	(1,159)				(1,159)
Share-based compensation expense	568			568
Ending balance at Dec. 31, 2020	805,464	$ 10,438	$ 384	587,165	191,098	(1,668)	18,047
Ending balance, shares at Dec. 31, 2020		10,438	38,618,054
Net income	21,798				21,798
Other comprehensive income (loss), net of tax	(26,394)						(26,394)
Issuance of common stock upon exercise of stock options	751		$ 1	750
Issuance of common stock upon exercise of stock options, shares			55,908
Restricted stock activity	(244)					(244)
Restricted stock activity, shares			274,739
Issuance of common stock in connection with employee stock purchase plan	515			515
Issuance of common stock in connection with employee stock purchase plan, shares			25,894
Cash dividends declared on preferred stock	(196)				(196)
Cash dividends declared on common stock	(2,315)				(2,315)
Repurchase of common stock	(6,363)					(6,363)
Repurchase of common stock, shares			(332,744)
Share-based compensation expense	779			779
Ending balance at Mar. 31, 2021	793,795	$ 10,438	$ 385	589,209	210,385	(8,275)	(8,347)
Ending balance, shares at Mar. 31, 2021		10,438	38,641,851
Beginning balance at Dec. 31, 2020	805,464	$ 10,438	$ 384	587,165	191,098	(1,668)	18,047
Beginning balance, shares at Dec. 31, 2020		10,438	38,618,054
Net income	75,596
Other comprehensive income (loss), net of tax	(23,561)						(23,561)
Repurchase of common stock	$ (28,900)
Repurchase of common stock, shares	(1,331,708)
Ending balance at Sep. 30, 2021	$ 824,418	$ 10,438	$ 386	592,192	258,077	(31,161)	(5,514)
Ending balance, shares at Sep. 30, 2021		10,438	37,690,087
Beginning balance at Mar. 31, 2021	793,795	$ 10,438	$ 385	589,209	210,385	(8,275)	(8,347)
Beginning balance, shares at Mar. 31, 2021		10,438	38,641,851
Net income	28,492				28,492
Other comprehensive income (loss), net of tax	8,524						8,524
Issuance of common stock upon exercise of stock options	135			135
Issuance of common stock upon exercise of stock options, shares			11,031
Restricted stock activity	(344)					(344)
Restricted stock activity, shares			19,166
Cash dividends declared on preferred stock	(195)				(195)
Cash dividends declared on common stock	(2,319)				(2,319)
Repurchase of common stock	(12,093)					(12,093)
Repurchase of common stock, shares			(538,744)
Share-based compensation expense	1,078			1,078
Ending balance at Jun. 30, 2021	817,073	$ 10,438	$ 385	590,422	236,363	(20,712)	177
Ending balance, shares at Jun. 30, 2021		10,438	38,094,972
Net income	25,306				25,306
Other comprehensive income (loss), net of tax	(5,691)						(5,691)
Issuance of common stock upon exercise of stock options	283			283
Issuance of common stock upon exercise of stock options, shares			25,866
Restricted stock activity	(38)		$ 1	(1)		(38)
Restricted stock activity, shares			12,879
Issuance of common stock in connection with employee stock purchase plan	408			408
Issuance of common stock in connection with employee stock purchase plan, shares			16,590
Cash dividends declared on preferred stock	(196)				(196)
Cash dividends declared on common stock	(3,396)				(3,396)
Repurchase of common stock	$ (10,411)					(10,411)
Repurchase of common stock, shares	(460,220)		460,220
Share-based compensation expense	$ 1,080			1,080
Ending balance at Sep. 30, 2021	$ 824,418	$ 10,438	$ 386	$ 592,192	$ 258,077	$ (31,161)	$ (5,514)
Ending balance, shares at Sep. 30, 2021		10,438	37,690,087

XML

CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS EQUITY (UNAUDITED) (Parenthetical) - $ / shares	3 Months Ended
	Sep. 30, 2021	Jun. 30, 2021	Mar. 31, 2021	Dec. 31, 2020	Sep. 30, 2020	Jun. 30, 2020	Mar. 31, 2020
Statement Of Stockholders Equity [Abstract]
Dividends per share	$ 0.09	$ 0.06	$ 0.06	$ 0.03	$ 0.03	$ 0.03	$ 0.03

XML

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED) - USD ($) $ in Thousands	9 Months Ended
	Sep. 30, 2021	Sep. 30, 2020
CASH FLOWS FROM OPERATING ACTIVITIES
Net income	$ 75,596	$ 25,176
Adjustments to reconcile net income to net cash from operating activities:
PROVISION FOR LOAN AND LEASE LOSSES	2,750	45,713
Impairment loss on assets held for sale	3,981	747
Depreciation and amortization of premises and equipment	4,603	4,849
Net amortization of securities	6,649	5,445
Net change in fair value of equity securities, net	(36)	(301)
Net realized gains on securities available-for-sale	(1,456)	(2,412)
Net losses (gains) on sales and valuation adjustments of premises and equipment	(497)	156
Net gains on sales of loans	(33,350)	(23,900)
Originations of U.S. government guaranteed loans	(323,010)	(301,177)
Proceeds from U.S. government guaranteed loans sold	312,733	232,251
Accretion of premiums and discounts on acquired loans, net	(5,001)	(10,754)
Net change in servicing assets	(1,555)	(1,796)
Net losses on sales and valuation adjustments of other real estate owned	755	999
Net amortization of other acquisition accounting adjustments	5,261	5,676
Amortization of subordinated debt issuance cost	131	41
Accretion of junior subordinated debentures discount	345	385
Share-based compensation expense	2,937	2,011
Deferred tax provision (benefit), net of valuation	4,108	2,643
Increase in cash surrender value of bank owned life insurance	(983)	(202)
Loss On Redemption Of Junior Subordinated Debentures	0	112
Changes in assets and liabilities:
Accrued interest receivable and other assets	9,706	(3,161)
Accrued interest payable and other liabilities	(17,565)	20,552
Net cash provided by operating activities	46,102	3,053
CASH FLOWS FROM INVESTING ACTIVITIES
Purchases of securities available-for-sale	(514,506)	(742,303)
Proceeds from maturities and calls of securities available-for-sale	37,108	173,581
Proceeds from paydowns of securities available-for-sale	269,286	189,913
Proceeds from sales of securities available-for-sale	280,962	80,509
Proceeds from maturities and calls of securities held-to-maturity	500	0
Purchases of Federal Home Loan Bank stock, net	(5,420)	12,475
Net change in loans and leases	(272,913)	(596,536)
Purchases of premises and equipment	(1,762)	(4,148)
Proceeds from sales of premises and equipment	296	32
Proceeds from sales of assets held for sale	4,919	0
Proceeds from sales of other real estate owned	2,998	874
Investment in bank owned life insurance	(50,000)	0
Proceeds from bank owned life insurance death benefit	0	69
Net cash used in investing activities	(248,532)	(885,534)
CASH FLOWS FROM FINANCING ACTIVITIES
Net increase in deposits	406,321	662,724
Proceeds from short-term borrowings	11,953,000	6,407,800
Repayments of short-term borrowings	(11,832,000)	(6,682,800)
Proceeds from Paycheck Protection Program Liquidity Facility (PPPLF) advances	196,679	449,889
Repayments of PPPLF advances	(412,182)	(279)
Proceeds From Subordinated Notes	0	73,258
Repayments of junior subordinated debentures	0	(1,500)
Net decrease in securities sold under agreements to repurchase	(14,279)	(3,688)
Dividends paid on preferred stock	(587)	(587)
Dividends paid on common stock	(7,928)	(3,412)
Proceeds from issuance of common stock	1,731	3,085
Repurchases of common stock	(28,867)	(1,668)
Net cash provided by financing activities	261,888	902,822
NET INCREASE IN CASH AND CASH EQUIVALENTS	59,458	20,341
CASH AND CASH EQUIVALENTS, beginning of period	83,420	80,737
CASH AND CASH EQUIVALENTS, end of period	142,878	101,078
SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION:
Cash paid during the period for interest	8,901	21,130
Cash paid during the period for taxes	25,525	7,697
SUPPLEMENTAL DISCLOSURES OF NON-CASH INVESTING AND FINANCING ACTIVITIES:
Common dividend declared, not paid	$ 102	$ 1,196

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Basis of Presentation

9 Months Ended

Sep. 30, 2021

Organization Consolidation And Presentation Of Financial Statements [Abstract]

Basis of Presentation

Note 1—Basis of Presentation

These unaudited interim condensed consolidated financial statements include the accounts of Byline Bancorp, Inc., a Delaware corporation (the “Company,” “Byline,” “we,” “us,” “our”), a bank holding company whose principal activity is the ownership and management of its Illinois state chartered subsidiary bank, Byline Bank (the “Bank”), based in Chicago, Illinois.

These unaudited interim condensed consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”) for interim financial information and in accordance with the instructions to Form 10-Q and Article 10 of Regulation S-X as promulgated by the Securities and Exchange Commission (“SEC”). In preparing these financial statements, the Company has evaluated events and transactions subsequent to September 30, 2021 for potential recognition or disclosure. In the opinion of management, all adjustments (consisting of normal recurring accruals) considered necessary for a fair presentation of the financial position and results of operations for the periods presented have been included. Certain information in footnote disclosures normally included in financial statements prepared in accordance with GAAP has been condensed or omitted pursuant to the rules and regulations of the SEC and the accounting standards for interim financial statements. These financial statements should be read in conjunction with the consolidated financial statements and notes thereto included in the Company’s Consolidated Financial Statements for the years ended December 31, 2020, 2019, and 2018.

In accordance with the Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) Topic 855, “Subsequent Events,” the Company’s management has evaluated subsequent events for potential recognition or disclosure through the date of the issuance of these condensed consolidated financial statements.

The Company has one reportable segment. The Company’s chief operating decision maker evaluates the operations of the Company using consolidated information for purposes of allocating resources and assessing performance. Therefore, segments disclosures are not required.

No subsequent events were identified that would have required a change to the condensed consolidated financial statements or disclosure in the notes to the condensed consolidated financial statements.

Certain prior period amounts have been reclassified to conform to current period presentation. These reclassifications did not result in any changes to previously reported net income or stockholders’ equity. 

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Accounting Pronouncements Recently Adopted or Issued

9 Months Ended

Sep. 30, 2021

Accounting Changes And Error Corrections [Abstract]

Accounting Pronouncements Recently Adopted or Issued

Note 2—Accounting Pronouncements Recently Adopted or Issued

The following reflect recent accounting pronouncements that have been adopted or are pending adoption by the Company. As the Company qualifies as an emerging growth company and has elected the extended transition period for complying with new or revised accounting pronouncements, it is not subject to new or revised accounting standards applicable to public companies during the extended transition period. The accounting pronouncements pending adoption below reflect effective dates for the Company as an emerging growth company with the extended transition period.

Adopted Accounting Pronouncement

Leases (Topic 842)— On January 1, 2021, the Company adopted ASU No. 2016-02 Leases and subsequent amendments thereto, which requires the Company to recognize most leases on the balance sheet. We adopted the standard under a modified retrospective approach as of the date of adoption and elected to apply several of the available practical expedients, including:

•Carry over of historical lease determination and lease classification conclusions

•Carry over of historical initial direct cost balances for existing leases

•Option not to recognize right-of-use assets and lease liabilities that arise from short-term leases (i.e. lease terms of twelve months or less)

•Use of hindsight in determining the lease term and right-of-use assets

•Accounting for lease and non-lease components in contracts in which the Company is a lessee as a single lease component

Adoption of the leasing standard resulted in the recognition of operating right-of-use assets of $10.5 million and operating lease liabilities of $11.7 million as of January 1, 2021. These amounts were determined based on the present value of remaining minimum lease payments, discounted using the Company’s incremental borrowing rate as of the date of adoption. This guidance also applies to the Company’s investment in direct financing leases, which are included in loans, but did not have a material impact. There was no material impact to the timing of expense or income recognition in the Company’s Consolidated Statements of Operations. Prior periods were not restated and continue to be presented under legacy GAAP. Refer to Note 8—Leases for further details.

Issued Accounting Pronouncements Pending Adoption

Financial Instruments—Credit Losses (Topic 326)—In June 2016, FASB issued ASU No. 2016‑13, Measurement of Credit Losses on Financial Instruments. Current GAAP requires an “incurred loss” methodology for recognizing credit losses that delays recognition until it is probable a loss has been incurred. The main objective of this ASU is to provide financial statement users with more decision-useful information about the expected credit losses on financial instruments and other commitments to extend credit held by a reporting entity at each reporting date. The amendments in this ASU replace the incurred loss impairment methodology in current GAAP with a methodology that reflects expected credit losses and requires consideration of a broader range of reasonable and supportable information to inform credit loss estimates. The amendments in this ASU require a financial asset (or group of financial assets) measured at amortized cost basis to be presented at the net amount expected to be collected. The allowance for credit losses is a valuation account that is deducted from the amortized cost basis of the financial asset(s) to present the net carrying value at the amount expected to be collected on the financial asset. The measurement of expected credit losses will be based on relevant information about past events, including historical experience, current conditions, and reasonable and supportable forecasts that affect the collectability of the reported amount. The amendments in this ASU broaden the information that an entity must consider in developing its expected credit loss estimate for assets measured either collectively or individually. The use of forecasted information incorporates more timely information in the estimate of expected credit loss, which will be more useful to users of the financial statements. In November 2019, FASB issued ASU No. 2019-10, Effective Dates, which delays the effective date of the ASU for entities not classified as a public business entity. Assuming the Company remains an emerging growth company, the Company anticipates adopting the standard on December 31, 2022. The Company is in the process of implementation and determining the impact that this ASU will have on the Company’s Consolidated Financial Statements.

Income Taxes (Topic 740)—In December 2019, FASB issued ASU No. 2019-12, Simplifying the Accounting for Income Taxes. The amendments in the ASU simplify the accounting for income taxes by removing the following: the exception to the incremental approach for intraperiod tax allocation when there is a loss from continuing operations and income or a gain from other items; the exception to the requirement to or not to recognize a deferred tax liability for a foreign entity when it becomes an equity method investment or it becomes a subsidiary, respectively; and the exception to the general methodology for calculating income taxes in an interim period when a year-to-date loss exceeds the anticipated loss for the year. The amendments in the ASU changes current authoritative guidance by requiring the recognition of franchise tax that is partially based on income as an income-based tax and account for any incremental amount incurred as a non-income-based tax; requiring an evaluation when a step up in the tax basis of goodwill should be considered part the of business combination; specifying that it is not required to allocate the consolidated amount of current and deferred tax expense to a legal entity that is

not subject to tax in its separate financial statements; and requiring that an entity reflect the effect of an enacted change in tax laws or rates in the annual effective tax rate computation in the interim period that includes the enactment date. The amendments are effective for annual periods beginning after December 15, 2021, and interim periods within annual periods beginning after December 15, 2022. Early adoption is permitted. Assuming the Company remains an emerging growth company, the new authoritative guidance will be effective for reporting periods after January 1, 2022. The Company is currently evaluating the provisions of ASU No. 2019-12 to determine the potential impact the new standard will have on the Company’s Consolidated Financial Statements.

Reference Rate Reform (Topic 848)—In March 2020, FASB issued ASU No. 2020-04, Facilitation of the Effects of Reference Rate Reform on Financial Reporting and in January 2021, the FASB issued ASU No. 2021-01, Reference Rate Reform. The amendments in the ASU provide optional guidance for a limited period of time to ease the potential burden in accounting for (or recognizing the effects of) reference rate reform on financial reporting. The amendments in the ASU provide optional expedients and exceptions for applying generally accepted accounting principles to contract modifications and hedging relationships, subject to meeting certain criteria, that reference LIBOR or another reference rate expected to be discontinued. The ASU is intended to help stakeholders during the global market-wide reference rate transition period. The amendments in the ASU will be in effect for all entities as of March 12, 2020 through December 31, 2022. The Company is currently evaluating the impact of reference rate reform to determine the potential impact the new standard will have on the Company’s Consolidated Financial Statements.

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Securities

9 Months Ended

Sep. 30, 2021

Investments Debt And Equity Securities [Abstract]

Securities

Note 3—Securities

The following tables summarize the amortized cost and fair values of securities available-for-sale and securities held-to-maturity as of the dates shown and the corresponding amounts of gross unrealized gains and losses:

September 30, 2021	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses			Fair Value
Available-for-sale
U.S. Treasury Notes	$	8,487	$	91	$	—		$	8,578
U.S. Government agencies		124,244		885		(1,865	)		123,264
Obligations of states, municipalities, and    political subdivisions		101,499		3,725		(164	)		105,060
Residential mortgage-backed securities
Agency		794,856		3,303		(12,986	)		785,173
Non-agency		64,645		86		(722	)		64,009
Commercial mortgage-backed securities
Agency		237,376		3,179		(3,146	)		237,409
Corporate securities		64,842		2,002		(17	)		66,827
Asset-backed securities		37,203		83		(1	)		37,285
Total	$	1,433,152	$	13,354	$	(18,901	)	$	1,427,605

September 30, 2021	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Fair Value
Held-to-maturity
Obligations of states, municipalities, and    political subdivisions	$	3,887	$	146	$	—	$	4,033
Total	$	3,887	$	146	$	—	$	4,033

December 31, 2020	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses			Fair Value
Available-for-sale
U.S. Treasury Notes	$	23,468	$	344	$	—		$	23,812
U.S. Government agencies		113,088		600		(137	)		113,551
Obligations of states, municipalities, and    political subdivisions		135,513		6,991		(85	)		142,419
Residential mortgage-backed securities
Agency		764,951		13,645		(205	)		778,391
Non-agency		32,654		332		(5	)		32,981
Commercial mortgage-backed securities
Agency		244,496		6,046		(390	)		250,152
Corporate securities		59,020		1,850		(102	)		60,768
Asset-backed securities		45,255		26		(125	)		45,156
Total	$	1,418,445	$	29,834	$	(1,049	)	$	1,447,230

December 31, 2020	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Fair Value
Held-to-maturity
Obligations of states, municipalities, and political    subdivisions	$	4,395	$	178	$	—	$	4,573
Total	$	4,395	$	178	$	—	$	4,573

The Company did not classify securities as trading during the nine months ended September 30, 2021 or during 2020.

Gross unrealized losses and fair values, aggregated by investment category and length of time that individual securities have been in a continuous unrealized loss position as of September 30, 2021 and December 31, 2020, are summarized as follows:

			Less than 12 Months					12 Months or Longer					Total
September 30, 2021	# of Securities		Fair Value		Unrealized Losses			Fair Value		Unrealized Losses			Fair Value		Unrealized Losses
Available-for-sale
U.S. Government agencies		10	$	74,687	$	(1,506	)	$	9,641	$	(359	)	$	84,328	$	(1,865	)
Obligations of states,    municipalities and political    subdivisions		7		8,097		(164	)		—		—			8,097		(164	)
Residential mortgage-backed    securities
Agency		51		620,325		(12,626	)		11,805		(360	)		632,130		(12,986	)
Non-agency		5		34,310		(722	)		—		—			34,310		(722	)
Commercial mortgage-backed    securities
Agency		21		75,001		(2,369	)		26,823		(777	)		101,824		(3,146	)
Corporate securities		2		5,041		(17	)		—		—			5,041		(17	)
Asset-backed securities		1		4,997		(1	)		—		—			4,997		(1	)
Total		97	$	822,458	$	(17,405	)	$	48,269	$	(1,496	)	$	870,727	$	(18,901	)

			Less than 12 Months					12 Months or Longer					Total
December 31, 2020	# of Securities		Fair Value		Unrealized Losses			Fair Value		Unrealized Losses			Fair Value		Unrealized Losses
Available-for-sale
U.S. Government agencies		5	$	30,639	$	(137	)	$	—	$	—		$	30,639	$	(137	)
Obligations of states,    municipalities and political    subdivisions		2		210		(85	)		—		—			210		(85	)
Residential mortgage-backed    securities
Agency		8		45,253		(198	)		472		(7	)		45,725		(205	)
Non-agency		2		3,963		(5	)		—		—			3,963		(5	)
Commercial mortgage-backed    securities
Agency		8		55,554		(390	)		—		—			55,554		(390	)
Corporate securities		6		10,916		(102	)		—		—			10,916		(102	)
Asset-backed securities		6		24,436		(99	)		4,952		(26	)		29,388		(125	)
Total		37	$	170,971	$	(1,016	)	$	5,424	$	(33	)	$	176,395	$	(1,049	)

Certain securities have fair values less than amortized cost and, therefore, contain unrealized losses. The Company evaluated the securities that had an unrealized loss for other than temporary impairment and determined all declines in value to be temporary. There were 97 securities available-for-sale with unrealized losses at September 30, 2021. There were no securities held-to-maturity with unrealized losses at September 30, 2021. The Company anticipates full recovery of amortized cost with respect to these securities by maturity, or sooner, in the event of a more favorable market interest rate environment. The Company does not intend to sell these securities and it is not more likely than not that the Company will be required to sell them before recovery of their amortized cost basis, which may be at maturity.

The proceeds from all sales of securities available-for-sale, and the associated gains and losses on sales and calls of securities, for the three and nine months ended September 30, 2021 and 2020 are listed below:

	For the Three Months Ended				For the Nine Months Ended
	September 30,				September 30,
	2021		2020		2021		2020
Proceeds	$	—	$	35,092	$	186,850	$	80,509
Gross gains		130		1,037		2,525		2,494
Gross losses		—		—		1,069		82

There were $130,000 and $1.5 million in net gains reclassified from accumulated other comprehensive income into earnings for the three and nine months ended September 30, 2021, respectively. There were $1.0 million and $2.4 million in net gains reclassified from accumulated other comprehensive income into earnings for the three and nine months ended September 30, 2020, respectively.

Securities posted as collateral were $361.0 million and $731.8 million at September 30, 2021 and December 31, 2020, respectively, of which carrying amounts of $361.0 million and $323.9 million were pledged at September 30, 2021 and December 31, 2020, respectively. At September 30, 2021 and December 31, 2020, of those pledged, the carrying amounts of securities pledged as collateral for public fund deposits were $311.3 million and $245.1 million, respectively, and for customer repurchase agreements of $38.7 million and $64.1 million, respectively. At September 30, 2021 and December 31, 2020, there were no securities pledged for advances from the Federal Home Loan Bank. Other securities were pledged for derivative positions, letters of credit and for purposes required or permitted by law. At September 30, 2021 and December 31, 2020, there were no holdings of securities of any one issuer, other than the U.S. Government and its agencies, in an amount greater than 10% of stockholders’ equity.

At September 30, 2021, the amortized cost and fair value of debt securities are shown by contractual maturity. Expected maturities may differ from contractual maturities if borrowers have the right to call or prepay obligations with or without call or prepayment penalties. Securities not due at a single maturity date are shown separately.

	Amortized Cost		Fair Value
Available-for-sale
Due in one year or less	$	23,201	$	23,402
Due from one to five years		26,476		27,466
Due from five to ten years		209,435		211,691
Due after ten years		77,163		78,455
Mortgage-backed securities		1,096,877		1,086,591
Total	$	1,433,152	$	1,427,605
Held-to-maturity
Due from one to five years		3,887		4,033
Total	$	3,887	$	4,033

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Loan and Lease Receivables

9 Months Ended

Sep. 30, 2021

Receivables [Abstract]

Loan and Lease Receivables

Note 4—Loan and Lease Receivables

Outstanding loan and lease receivables as of the dates shown were categorized as follows:

	September 30,			December 31,
	2021			2020
Commercial real estate	$	1,615,875		$	1,416,731
Residential real estate		507,226			569,387
Construction, land development, and other land		340,428			231,602
Commercial and industrial		1,535,412			1,372,452
Paycheck Protection Program ("PPP")		275,619			527,044
Installment and other		1,396			1,942
Lease financing receivables		334,484			223,295
Total loans and leases		4,610,440			4,342,453
Net unamortized deferred fees and costs		(5,484	)		(5,764	)
Initial direct costs		4,272			3,846
Allowance for loan and lease losses		(60,598	)		(66,347	)
Net loans and leases	$	4,548,630		$	4,274,188

	September 30,			December 31,
	2021			2020
Lease financing receivables
Net minimum lease payments	$	337,512		$	234,472
Unguaranteed residual values		22,338			8,690
Unearned income		(25,366	)		(19,867	)
Total lease financing receivables		334,484			223,295
Initial direct costs		4,272			3,846
Lease financial receivables before allowance for    lease losses	$	338,756		$	227,141

Total loans and leases consist of originated loans and leases, acquired impaired loans and acquired non-impaired loans and leases. At September 30, 2021 and December 31, 2020, total loans and leases included the guaranteed amount of U.S. government guaranteed loans of $396.6 million and $635.0 million, respectively. At September 30, 2021 and December 31, 2020, the discount on the unguaranteed portion of U.S. government guaranteed loans was $27.9 million and $28.3 million, respectively, which are included in total loans and leases. At September 30, 2021 and December 31, 2020, installment and other loans included overdraft deposits of $477,000 and $496,000, respectively, which were reclassified as loans. At September 30, 2021 and December 31, 2020, loans and leases and loans held for sale pledged as security for borrowings were $2.0 billion and $2.3 billion, respectively.

The minimum annual lease payments for lease financing receivables as of September 30, 2021 are summarized as follows:

	Minimum Lease Payments
2021	$	27,875
2022		110,733
2023		85,005
2024		59,682
2025		39,328
Thereafter		14,889
Total	$	337,512

Originated loans and leases represent originations excluding loans initially acquired in a business combination. However, once an acquired non-impaired loan reaches its maturity date, and is re-underwritten and renewed, it is internally classified as an originated loan. Acquired impaired loans are loans acquired from a business combination with evidence of credit quality deterioration and are accounted for under ASC Topic 310-30. Acquired non-impaired loans and leases represent loans and leases acquired from a business combination without more than insignificant evidence of credit quality deterioration and are accounted for under ASC Topic 310-20. Acquired leases and revolving loans having evidence of credit quality deterioration do not qualify to be accounted for as acquired impaired loans and are accounted for under ASC Topic 310-20. The following tables summarize the balances for each respective loan and lease category as of September 30, 2021 and December 31, 2020:

September 30, 2021	Originated		Acquired Impaired		Acquired Non-Impaired		Total
Commercial real estate	$	1,298,454	$	84,821	$	235,103	$	1,618,378
Residential real estate		387,578		61,893		58,283		507,754
Construction, land development, and other land		336,460		1,746		206		338,412
Commercial and industrial		1,480,076		6,651		49,678		1,536,405
Paycheck Protection Program		268,081		—		—		268,081
Installment and other		998		169		275		1,442
Lease financing receivables		331,149		—		7,607		338,756
Total loans and leases	$	4,102,796	$	155,280	$	351,152	$	4,609,228

December 31, 2020	Originated		Acquired Impaired		Acquired Non-Impaired		Total
Commercial real estate	$	1,017,587	$	108,484	$	295,599	$	1,421,670
Residential real estate		414,220		78,840		79,211		572,271
Construction, land development, and other land		226,408		4,113		212		230,733
Commercial and industrial		1,276,527		10,178		82,195		1,368,900
Paycheck Protection Program		517,815		—		—		517,815
Installment and other		1,267		202		536		2,005
Lease financing receivables		214,636		—		12,505		227,141
Total loans and leases	$	3,668,460	$	201,817	$	470,258	$	4,340,535

Acquired impaired loans—The unpaid principal balance and carrying amount of all acquired impaired loans are summarized below. The balances do not include an allowance for loan and lease losses of $4.3 million and $6.5 million, at September 30, 2021 and December 31, 2020, respectively.

	September 30, 2021				December 31, 2020
	Unpaid Principal Balance		Carrying Value		Unpaid Principal Balance		Carrying Value
Commercial real estate	$	126,738	$	84,821	$	154,233	$	108,484
Residential real estate		108,560		61,893		126,086		78,840
Construction, land development, and other land		9,301		1,746		12,677		4,113
Commercial and industrial		12,115		6,651		15,925		10,178
Installment and other		866		169		917		202
Total acquired impaired loans	$	257,580	$	155,280	$	309,838	$	201,817

The following table summarizes the changes in accretable yield for acquired impaired loans for the three and nine months ended September 30, 2021 and 2020:

	Three Months Ended						Nine Months Ended
	September 30,						September 30,
	2021			2020			2021			2020
Beginning balance	$	24,474		$	31,868		$	27,696		$	40,009
Accretion to interest income		(3,080	)		(5,763	)		(9,896	)		(15,420	)
Reclassification from nonaccretable difference, net		1,217			5,727			4,811			7,243
Ending balance	$	22,611		$	31,832		$	22,611		$	31,832

Acquired non-impaired loans and leases— The unpaid principal balance and carrying value for acquired non-impaired loans and leases at September 30, 2021 and December 31, 2020 were as follows:

	September 30, 2021				December 31, 2020
	Unpaid Principal Balance		Carrying Value		Unpaid Principal Balance		Carrying Value
Commercial real estate	$	240,271	$	235,103	$	302,091	$	295,599
Residential real estate		58,858		58,283		80,104		79,211
Construction, land development, and other land		271		206		278		212
Commercial and industrial		51,468		49,678		84,608		82,195
Installment and other		286		275		553		536
Lease financing receivables		7,638		7,607		13,978		12,505
Total acquired non-impaired loans and leases	$	358,792	$	351,152	$	481,612	$	470,258

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Allowance for Loan and Lease Losses and Reserve for Unfunded Commitments

9 Months Ended

Sep. 30, 2021

Receivables [Abstract]

Allowance for Loan and Leases and Reserve for Unfunded Commitments

Note 5—Allowance for Loan and Lease Losses and Reserve for Unfunded Commitments

Loans and leases considered for inclusion in the allowance for loan and lease losses include acquired non-impaired loans and leases, those acquired impaired loans with credit deterioration after acquisition, and originated loans and leases. Although all acquired loans and leases are included in the following table, only those with credit deterioration subsequent to acquisition date are included in the allowance for loan and lease losses.

The following tables summarize the balance and activity within the allowance for loan and lease losses, the components of the allowance for loan and lease losses in terms of loans and leases individually and collectively evaluated for impairment, and corresponding loan and lease balances by type for the three and nine months ended September 30, 2021 and 2020 are as follows:

September 30, 2021	Commercial Real Estate			Residential Real Estate			Construction, Land Development, and Other Land			Commercial and Industrial			Paycheck Protection Program		Installment and Other			Lease Financing Receivables			Total
Allowance for loan and    lease losses
Three months ended
Beginning balance	$	19,541		$	1,364		$	619		$	38,284		$	—	$	9		$	1,902		$	61,719
Provision/(recapture)		1,108			(225	)		(61	)		(1,218	)		—		(2	)		750			352
Charge-offs		(564	)		(65	)		—			(1,456	)		—		—			(399	)		(2,484	)
Recoveries		287			2			—			380			—		—			342			1,011
Ending balance	$	20,372		$	1,076		$	558		$	35,990		$	—	$	7		$	2,595		$	60,598
Nine months ended
Beginning balance	$	19,584		$	2,400		$	1,352		$	41,183		$	—	$	15		$	1,813		$	66,347
Provision/(recapture)		2,891			(1,257	)		(468	)		226			—		(8	)		1,366			2,750
Charge-offs		(2,644	)		(76	)		(326	)		(6,172	)		—		—			(1,148	)		(10,366	)
Recoveries		541			9			—			753			—		—			564			1,867
Ending balance	$	20,372		$	1,076		$	558		$	35,990		$	—	$	7		$	2,595		$	60,598
Ending balance:
Individually evaluated for    impairment	$	8,420		$	—		$	—		$	16,142		$	—	$	—		$	—		$	24,562
Collectively evaluated for    impairment		9,314			723			550			18,572			—		7			2,595			31,761
Loans acquired with    deteriorated credit    quality		2,638			353			8			1,276			—		—			—			4,275
Total allowance for loan    and lease losses	$	20,372		$	1,076		$	558		$	35,990		$	—	$	7		$	2,595		$	60,598

September 30, 2021	Commercial Real Estate		Residential Real Estate		Construction, Land Development, and Other Land		Commercial and Industrial		Paycheck Protection Program		Installment and Other		Lease Financing Receivables		Total
Loans and leases ending balance:
Individually evaluated for    impairment	$	45,563	$	3,946	$	—	$	37,689	$	—	$	—	$	—	$	87,198
Collectively evaluated for    impairment		1,487,994		441,915		336,666		1,492,065		268,081		1,273		338,756		4,366,750
Loans acquired with    deteriorated    credit quality		84,821		61,893		1,746		6,651		—		169		—		155,280
Total loans and leases	$	1,618,378	$	507,754	$	338,412	$	1,536,405	$	268,081	$	1,442	$	338,756	$	4,609,228

September 30, 2020	Commercial Real Estate			Residential Real Estate			Construction, Land Development, and Other Land			Commercial and Industrial			Paycheck Protection Program		Installment and Other			Lease Financing Receivables			Total
Allowance for loan and lease losses
Three months ended
Beginning balance	$	14,110		$	3,741		$	1,491		$	30,108		$	—	$	36		$	1,814		$	51,300
Provision		6,421			291			1,029			7,603			—		1			395			15,740
Charge-offs		(1,566	)		(250	)		(701	)		(3,254	)		—		—			(374	)		(6,145	)
Recoveries		19			8			53			83			—		—			200			363
Ending balance	$	18,984		$	3,790		$	1,872		$	34,540		$	—	$	37		$	2,035		$	61,258
Nine months ended
Beginning balance	$	7,965		$	1,990		$	610		$	19,377		$	—	$	50		$	1,944		$	31,936
Provision/(recapture)		14,149			2,031			1,910			26,844			—		(13	)		792			45,713
Charge-offs		(3,206	)		(259	)		(701	)		(12,057	)		—		—			(1,392	)		(17,615	)
Recoveries		76			28			53			376			—		—			691			1,224
Ending balance	$	18,984		$	3,790		$	1,872		$	34,540		$	—	$	37		$	2,035		$	61,258
Ending balance:
Individually evaluated for    impairment	$	4,516		$	77		$	—		$	10,189		$	—	$	—		$	—		$	14,782
Collectively evaluated for    impairment		11,825			3,413			1,685			22,450			—		37			2,035			41,445
Loans acquired with    deteriorated   credit quality		2,643			300			187			1,901			—		—			—			5,031
Total allowance for loan and   lease losses	$	18,984		$	3,790		$	1,872		$	34,540		$	—	$	37		$	2,035		$	61,258

September 30, 2020	Commercial Real Estate		Residential Real Estate		Construction, Land Development, and Other Land		Commercial and Industrial		Paycheck Protection Program		Installment and Other		Lease Financing Receivables		Total
Loans and leases ending balance:
Individually evaluated for    impairment	$	39,001	$	1,636	$	—	$	37,253	$	—	$	—	$	—	$	77,890
Collectively evaluated for    impairment		1,191,740		547,563		234,230		1,281,067		622,191		2,929		200,089		4,079,809
Loans acquired with   deteriorated credit quality		117,114		84,197		4,804		10,489		—		214		—		216,818
Total loans and leases	$	1,347,855	$	633,396	$	239,034	$	1,328,809	$	622,191	$	3,143	$	200,089	$	4,374,517

The Company recaptured $1.1 million and $5.7 million of the allowance for loan and lease losses for the three and nine months ended September 30, 2021, respectively, and increased the allowance by $10.0 million and $29.3 million for the three and nine months ended September 30, 2020, respectively. For acquired impaired loans, the Company increased the allowance for loan and lease losses by $405,000 and recaptured $2.2 million of allowance for the three and nine months ended September 30, 2021, respectively. The Company increased the allowance for loan and lease losses by $295,000 and $2.3 million for the three and nine months ended September 30, 2020, respectively for acquired impaired loans.

For loans individually evaluated for impairment, the Company recaptured $1.0 million of the allowance for loan and lease losses and increased the allowance by $602,000 for the three and nine months ended September 30, 2021, respectively. The Company increased the allowance on loans individually evaluated for impairment by $768,000 and $4.1 million for the three and nine months ended September 30, 2020, respectively. For loans collectively evaluated for impairment, the Company decreased the allowance for loan and lease losses by $498,000 and $4.2 million for the three and nine months ended September 30, 2021, and increased the allowance for loan and lease losses by $8.9 million and $23.0 million for the three and nine months ended September 30, 2020, respectively.

An allowance for loan and lease loss allocation has not been made for Paycheck Protection Program (“PPP”) loans as these loans are fully guaranteed by the Small Business Association ("SBA"). On a quarterly basis, the Company assesses the collectability of its government guarantee loan and lease portfolio using historical loss experience in its small business lending unit.

The following tables summarize the recorded investment, unpaid principal balance, and related allowance for loans and leases considered impaired as of September 30, 2021 and December 31, 2020, which exclude acquired impaired loans. For purposes of these tables, the unpaid principal balance represents the outstanding contractual balance. Impaired loans include loans that are individually evaluated for impairment as well as troubled debt restructurings for all loan categories. The sum of non-accrual loans and loans past due 90 days still on accrual will differ from the total impaired loan amount.

September 30, 2021	Recorded Investment		Unpaid Principal Balance		Related Allowance
With no related allowance recorded
Commercial real estate	$	20,432	$	25,512	$	—
Residential real estate		3,850		3,901		—
Commercial and industrial		14,212		15,999		—
With an allowance recorded
Commercial real estate		25,131		26,569		8,420
Residential real estate		96		152		—
Commercial and industrial		23,477		25,614		16,142
Total impaired loans	$	87,198	$	97,747	$	24,562

December 31, 2020	Recorded Investment		Unpaid Principal Balance		Related Allowance
With no related allowance recorded
Commercial real estate	$	32,473	$	34,792	$	—
Residential real estate		1,558		1,644		—
Commercial and industrial		17,944		19,917		—
With an allowance recorded
Commercial real estate		13,696		14,919		5,034
Residential real estate		272		274		78
Commercial and industrial		29,412		32,018		18,848
Total impaired loans	$	95,355	$	103,564	$	23,960

The following tables summarize the average recorded investment and interest income recognized for loans and leases considered impaired, which excludes acquired impaired loans, for the nine months ended:

September 30, 2021	Average Recorded Investment		Interest Income Recognized
With no related allowance recorded
Commercial real estate	$	28,480	$	920
Residential real estate		2,788		109
Commercial and industrial		16,668		481
With an allowance recorded
Commercial real estate		27,620		1,185
Residential real estate		207		2
Commercial and industrial		28,785		1,666
Total impaired loans	$	104,548	$	4,363

September 30, 2020	Average Recorded Investment		Interest Income Recognized
With no related allowance recorded
Commercial real estate	$	22,511	$	927
Residential real estate		1,615		26
Construction, land development, and other land		2,984		220
Commercial and industrial		16,991		493
With an allowance recorded
Commercial real estate		13,329		526
Residential real estate		460		21
Commercial and industrial		21,352		1,078
Total impaired loans	$	79,242	$	3,291

The following tables summarize the risk rating categories of the loans and leases considered for inclusion in the allowance for loan and lease losses calculation, excluding acquired impaired loans, as of September 30, 2021 and December 31, 2020:

September 30, 2021	Commercial Real Estate		Residential Real Estate		Construction, Land Development, and Other Land		Commercial and Industrial		Paycheck Protection Program		Installment and Other		Lease Financing Receivables		Total
Pass	$	1,297,981	$	422,843	$	291,496	$	1,261,335	$	268,081	$	1,190	$	335,475	$	3,878,401
Watch		143,047		16,862		37,795		196,288		—		83		264		394,339
Special Mention		48,605		3,036		7,375		30,841		—		—		1,934		91,791
Substandard		43,924		3,120		—		41,290		—		—		786		89,120
Doubtful		—		—		—		—		—		—		297		297
Loss		—		—		—		—		—		—		—		—
Total	$	1,533,557	$	445,861	$	336,666	$	1,529,754	$	268,081	$	1,273	$	338,756	$	4,453,948

December 31, 2020	Commercial Real Estate		Residential Real Estate		Construction, Land Development, and Other Land		Commercial and Industrial		Paycheck Protection Program		Installment and Other		Lease Financing Receivables		Total
Pass	$	1,064,623	$	463,103	$	180,458	$	1,027,399	$	517,815	$	1,706	$	222,818	$	3,477,922
Watch		134,381		22,086		46,162		225,930		—		96		47		428,702
Special Mention		60,022		3,795		—		56,784		—		—		2,721		123,322
Substandard		54,160		4,447		—		48,609		—		1		955		108,172
Doubtful		—		—		—		—		—		—		600		600
Loss		—		—		—		—		—		—		—		—
Total	$	1,313,186	$	493,431	$	226,620	$	1,358,722	$	517,815	$	1,803	$	227,141	$	4,138,718

The following tables summarize contractual delinquency information for acquired non-impaired and originated loans and leases by category at September 30, 2021 and December 31, 2020:

September 30, 2021	30-59 Days Past Due		60-89 Days Past Due		Greater than 90 Days and Accruing		Non- accrual		Total Past Due		Current		Total
Commercial real estate	$	330	$	1,426	$	—	$	17,082	$	18,838	$	1,514,719	$	1,533,557
Residential real estate		1,087		—		—		2,127		3,214		442,647		445,861
Construction, land development,    and other land		2,035		—		—		—		2,035		334,631		336,666
Commercial and industrial		1,653		594		—		14,272		16,519		1,513,235		1,529,754
Paycheck Protection Program		—		—		—		—		—		268,081		268,081
Installment and other		39		—		—		—		39		1,234		1,273
Lease financing receivables		973		98		—		984		2,055		336,701		338,756
Total	$	6,117	$	2,118	$	—	$	34,465	$	42,700	$	4,411,248	$	4,453,948

December 31, 2020	30-59 Days Past Due		60-89 Days Past Due		Greater than 90 Days and Accruing		Non- accrual		Total Past Due		Current		Total
Commercial real estate	$	1,544	$	4,194	$	—	$	15,969	$	21,707	$	1,291,479	$	1,313,186
Residential real estate		1,686		—		—		1,929		3,615		489,816		493,431
Construction, land development,    and other land		—		—		—		—		—		226,620		226,620
Commercial and industrial		4,521		1,290		—		21,936		27,747		1,330,975		1,358,722
Paycheck Protection Program												517,815		517,815
Installment and other		6		—		—		1		7		1,796		1,803
Lease financing receivables		996		376		—		1,268		2,640		224,501		227,141
Total	$	8,753	$	5,860	$	—	$	41,103	$	55,716	$	4,083,002	$	4,138,718

Trouble debt restructurings (“TDRs”) are granted due to borrower financial difficulty and provide for a modification of loan repayment terms. TDRs are treated in the same manner as impaired loans for purposes of calculating the allowance for loan and lease losses. The tables below present TDRs by loan category as of September 30, 2021 and December 31, 2020:

September 30, 2021	Number of Loans		Pre- Modification Outstanding Recorded Investment		Post- Modification Outstanding Recorded Investment		Charge-offs		Specific Reserves
Accruing:
Commercial real estate		7	$	2,130	$	2,130	$	—	$	209
Commercial and industrial		1		63		63		—		63
Residential real estate		2		173		173		—		—
Total accruing		10		2,366		2,366		—		272
Non-accruing:
Commercial real estate		3		856		740		116		311
Commercial and industrial		3		1,730		1,107		623		508
Total non-accruing		6		2,586		1,847		739		819
Total troubled debt restructurings		16	$	4,952	$	4,213	$	739	$	1,091

December 31, 2020	Number of Loans		Pre- Modification Outstanding Recorded Investment		Post- Modification Outstanding Recorded Investment		Charge-offs		Specific Reserves
Accruing:
Commercial real estate		8	$	2,187	$	2,187	$	—	$	104
Commercial and industrial		1		78		78		—		78
Residential real estate		3		230		230		—		—
Total accruing		12		2,495		2,495		—		182
Non-accruing:
Commercial real estate		4		1,609		1,362		247		102
Commercial and industrial		14		4,420		4,288		132		3,157
Total non-accruing		18		6,029		5,650		379		3,259
Total troubled debt restructurings		30	$	8,524	$	8,145	$	379	$	3,441

In addition, there was no commitment outstanding on troubled debt restructurings at September 30, 2021 or December 31, 2020.

Loans modified as troubled debt restructurings that occurred during the three and nine months ended September 30, 2021 and 2020 were:

	Three Months Ended						Nine Months Ended
	September 30,						September 30,
	2021			2020			2021			2020
Accruing:
Beginning balance	$	2,395		$	3,151		$	2,495		$	1,771
Additions		—			604			281			604
Net payments		(29	)		(1,462	)		(410	)		(1,538	)
Net transfers from non-accrual		—			—			—			1,456
Ending balance		2,366			2,293			2,366			2,293
Non-accruing:
Beginning balance		4,441			7,449			5,650			8,800
Additions		—			—			673			5,633
Net payments		(2,584	)		(302	)		(3,568	)		(1,688	)
Charge-offs		(10	)		(852	)		(908	)		(4,994	)
Net transfers to accrual		—			—			—			(1,456	)
Ending balance		1,847			6,295			1,847			6,295
Total troubled debt restructurings	$	4,213		$	8,588		$	4,213		$	8,588

There were no troubled debt restructurings that subsequently defaulted within twelve months of the restructure date during the three and nine months ended September 30, 2021 or 2020.

At September 30, 2021 and December 31, 2020, the reserve for unfunded commitments was $1.5 million and $1.9 million, respectively. During the three and nine months ended September 30, 2021, there was a recapture for unfunded commitments of $79,000 and $363,000, respectively. During the three and nine months ended September 30, 2020, the provision for unfunded commitments was $519,000 and $1.2 million, respectively. There were no charge-offs or recoveries related to the reserve for unfunded commitments during the periods.

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Servicing Assets

9 Months Ended

Sep. 30, 2021

Transfers And Servicing [Abstract]

Servicing Assets

Note 6—Servicing Assets

Activity for servicing assets and the related changes in fair value for the three and nine months ended September 30, 2021 and 2020 was as follows:

	Three Months Ended September 30,					Nine Months Ended September 30,
	2021			2020		2021			2020
Beginning balance	$	24,683		$	18,351	$	22,042		$	19,471
Additions, net		1,564			1,794		5,703			4,449
Changes in fair value		(2,650	)		1,122		(4,148	)		(2,653	)
Ending balance	$	23,597		$	21,267	$	23,597		$	21,267

Loans serviced for others are not included in the Consolidated Statements of Financial Condition. The unpaid principal balances of these loans serviced for others as of September 30, 2021 and December 31, 2020 were as follows:

	September 30,		December 31,
	2021		2020
Loan portfolios serviced for:
SBA guaranteed loans	$	1,471,367	$	1,395,713
USDA guaranteed loans		143,847		135,543
Total	$	1,615,214	$	1,531,256

Loan servicing revenue totaled $3.3 million and $2.9 million for each of the three months ended September 30, 2021 and 2020, respectively. Loan servicing revenue totaled $9.3 million and $8.7 million for each of the nine months ended September 30, 2021 and 2020, respectively. Loan servicing asset revaluation, which represents the changes in fair value of servicing assets, resulted in a downward valuation adjustment of $2.7 million and an upward valuation adjustment of $1.1 million for three months ended September 30, 2021 and 2020, respectively. Loan servicing asset revaluations resulted in downward valuation adjustments of $4.1 million and $2.7 million for the nine months ended September 30, 2021 and 2020, respectively.

The fair value of servicing rights is highly sensitive to changes in underlying assumptions. Changes in secondary market premiums and prepayment speed assumptions have the most significant impact on the fair value of servicing rights.

Generally, as interest rates rise on variable rate loans, loan prepayments increase due to an increase in refinance activity, which may result in a decrease in the fair value of servicing assets. Measurement of fair value is limited to the conditions existing and the assumptions used as of a particular point in time, and those assumptions may change over time. Refer to Note 15—Fair Value Measurement for further details.

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Other Real Estate Owned

9 Months Ended

Sep. 30, 2021

Real Estate [Abstract]

Other Real Estate Owned

Note 7—Other Real Estate Owned

The following table presents the change in other real estate owned (“OREO”) for the three and nine months ended September 30, 2021 and 2020:

	Three Months Ended September 30,						Nine Months Ended September 30,
	2021			2020			2021			2020
Beginning balance	$	4,417		$	8,652		$	6,350		$	9,896
Net additions to OREO		—			41			436			127
Proceeds from sales of OREO		(1,498	)		(224	)		(2,998	)		(874	)
Gains (losses) on sales of OREO		114			(41	)		133			44
Valuation adjustments		—			(278	)		(888	)		(1,043	)
Ending balance	$	3,033		$	8,150		$	3,033		$	8,150

At September 30, 2021 and December 31, 2020, the balance of real estate owned included no foreclosed residential real estate properties recorded as a result of obtaining physical possession of the property.

At September 30, 2021 and December 31, 2020, the recorded investment of consumer mortgage loans secured by residential real estate properties for which formal foreclosure proceedings were in process was $3.1 million and $3.3 million, respectively.

There were no internally financed sales of OREO for the three and nine months ended September 30, 2021 or 2020.

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Leases

9 Months Ended

Sep. 30, 2021

Leases [Abstract]

Leases

Note 8—Leases

The Company enters into leases in the normal course of business primarily for its banking facilities and branches. The Company’s operating leases have varying maturity dates through year end 2042, some of which include renewal or termination options to extend the lease. In addition, the Company leases or subleases real estate to third parties. The Company includes lease extension and termination options in the lease term if, after considering relevant economic factors, it is reasonably certain the Company will exercise the option. In addition, the Company has elected to account for any non-lease components in its real estate leases as part of the associated lease component. The Company has also elected not to recognize leases with original lease terms of 12 months or less (short-term leases) on the Company’s balance sheet.

Leases are classified at the lease commencement date. Lease expense for operating leases and short-term leases is recognized on a straight-line basis over the lease term. Right-of-use assets represent our right to use an underlying asset for the lease term and lease liabilities represent our obligation to make lease payments arising from the lease. Right-of-use assets and lease liabilities are recognized at the lease commencement date based on the estimated present value of lease payments over the lease term.

The following table summarizes the amount and balance sheet line item for our operating lease right-of-use asset and liability as of September 30, 2021:

	Balance Sheet Line Item	September 30, 2021
Operating lease right-of-use asset	Accrued interest receivable and other assets	$	11,580
Operating lease liability	Accrued interest payable and other liabilities		13,744

The Company uses its incremental borrowing rate at lease commencement to calculate the present value of lease payments when the rate implicit in a lease is not known. The Company’s incremental borrowing rate is based on the FHLB regular advance rate, adjusted for the lease term and other factors. At September 30, 2021, the weighted-average discount rate of operating leases was 0.85% and the weighted average remaining life of operating leases was 6.0 years.

The future minimum lease payments for operating leases, subsequent to September 30, 2021, as recorded on the balance sheet, are summarized as follows:

	Operating Lease Commitments
2021	$	1,515
2022		3,618
2023		2,412
2024		2,194
2025		1,505
Thereafter		3,108
Total undiscounted lease payments		14,352
Less: imputed interest		(608	)
Net lease liabilities	$	13,744

The Company’s rental expenses for the three months ended September 30, 2021 and 2020 were $1.2 million and $1.6 million, respectively. The Company’s rental expenses for the nine months ended September 30, 2021 and 2020 were $4.0 million and $4.9 million, respectively. For the three months ended September 30, 2021 and 2020, the Company received $166,000 and $184,000, respectively, in sublease income. For the nine months ended September 30, 2021 and 2020, the Company received $479,000 and $549,000, respectively, in sublease income. The total amount of minimum rentals to be received in the future on these subleases is approximately $1.5 million, and the leases have contractual lives extending through

2026. In addition to the above required lease payments, the Company has contractual obligations related primarily to information technology contracts and other maintenance contracts.

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Goodwill, Core Deposit Intangible and Other Intangible Assets

9 Months Ended

Sep. 30, 2021

Goodwill And Intangible Assets Disclosure [Abstract]

Goodwill, Core Deposit Intangible and Other Intangible Assets

Note 9—Goodwill, Core Deposit Intangible and Other Intangible Assets

The following tables summarize the changes in the Company’s goodwill, core deposit intangible assets, and customer relationship intangible assets for the three and nine months ended September 30, 2021 and 2020:

	For the Three Months Ended September 30,
	2021								2020
	Goodwill		Core Deposit Intangible			Customer Relationship Intangible			Goodwill		Core Deposit Intangible			Customer Relationship Intangible
Beginning balance	$	148,353	$	18,346		$	2,335		$	148,353	$	25,459		$	2,658
Amortization		—		(1,672	)		(66	)		—		(1,825	)		(122	)
Ending balance	$	148,353	$	16,674		$	2,269		$	148,353	$	23,634		$	2,536
Accumulated amortization	N/A		$	38,792		$	947		N/A		$	31,832		$	680
Weighted average remaining    amortization period	N/A		5.0 Years			8.5 Years			N/A		5.8 Years			9.7 Years

	Nine Months Ended September 30,
	2021								2020
	Goodwill		Core Deposit Intangible			Customer Relationship Intangible			Goodwill		Core Deposit Intangible			Customer Relationship Intangible
Beginning balance	$	148,353	$	21,809		$	2,469		$	148,353	$	29,111		$	2,791
Amortization		—		(5,135	)		(200	)		—		(5,477	)		(255	)
Ending balance	$	148,353	$	16,674		$	2,269		$	148,353	$	23,634		$	2,536
Accumulated amortization	N/A		$	38,792		$	947		N/A		$	31,832		$	680
Weighted average remaining    amortization period	N/A		5.0 Years			8.5 Years			N/A		5.8 Years			9.7 Years

The following table presents the estimated amortization expense for core deposit intangible and customer relationship intangible assets remaining at September 30, 2021:

	Estimated Amortization
2021	$	1,737
2022		6,386
2023		4,336
2024		2,286
2025		1,721
Thereafter		2,477
Total	$	18,943

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Income Taxes

9 Months Ended

Sep. 30, 2021

Income Tax Disclosure [Abstract]

Income Taxes

Note 10—Income Taxes

The Company uses an estimated annual effective tax rate method in computing its interim tax provision. This effective tax rate is based on forecasted annual pre-tax income, permanent tax differences and statutory tax rates.

The effective tax rate for the nine months ended September 30, 2021 and 2020 was 25.3% and 28.5%, respectively. The Company recorded discrete income tax benefit of $166,000 and a provision of $231,000 related to the exercise of stock options and vesting of restricted shares for the nine months ended September 30, 2021 and 2020, respectively.

Net deferred tax assets increased to $45.2 million at September 30, 2021 compared to $40.2 million at December 31, 2020 primarily a result of unrealized losses on available-for-sale securities.

During the second quarter 2021, Illinois Senate Bill 2017 was passed which created a temporary limitation on Net Loss Deduction ("NLD") usage. For tax years 2021, 2022, and 2023, C Corporations are limited to applying a maximum of $100,000 of NLD to taxable income. NLDs that are limited during these years have an extended expiration date for the years in which they are limited. The extended expiration of the Company’s NLD carryforwards are from December 31, 2026 to December 31, 2033.

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Deposits

9 Months Ended

Sep. 30, 2021

Deposits [Abstract]

Deposits

Note 11—Deposits

The composition of deposits was as follows as of September 30, 2021 and December 31, 2020:

	September 30,		December 31,
	2021		2020
Non-interest-bearing demand deposits	$	2,117,749	$	1,762,676
Interest-bearing checking accounts		652,824		494,424
Money market demand accounts		1,057,419		1,142,709
Other savings		627,294		564,700
Time deposits (below $250,000)		553,364		600,810
Time deposits ($250,000 and above)		149,628		186,712
Total deposits	$	5,158,278	$	4,752,031

There were no brokered deposits included in Time deposits of $250,000 or more at September 30, 2021, and $35.0 million at December 31, 2020, respectively.

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Other Borrowings

9 Months Ended

Sep. 30, 2021

Debt Disclosure [Abstract]

Other Borrowings

Note 12—Other Borrowings

The following is a summary of the Company’s other borrowings as of September 30, 2021 and December 31, 2020:

	September 30,		December 31,
	2021		2020
Paycheck Protection Program Liquidity Facility	$	156,404	$	371,907
Federal Home Loan Bank advances		355,000		234,000
Securities sold under agreements to repurchase		27,715		41,994
Line of credit		—		—
Total	$	539,119	$	647,901

On April 21, 2020, the Bank entered into a Letter Agreement with the Federal Reserve Bank of Chicago that allows the Bank to access the Paycheck Protection Program Liquidity Facility (the “PPPLF”). Under the terms of the PPPLF, the Bank pledges loans originated under the PPP to the Federal Reserve Bank of Chicago as collateral for available advances under the PPPLF. Advances under the PPPLF are in an amount equal to the aggregate principal amount of PPP loans pledged by Byline Bank, carry an interest rate of 35 basis points and mature on the maturity date of the PPP loans pledged as collateral for the advance. As of September 30, 2021, the PPPLF balance was $156.4 million with an interest rate of 0.35% with various maturity dates from April 2022 to February 2026.

Byline Bank has the capacity to borrow funds from the discount window of the Federal Reserve System. As of September 30, 2021 and December 31, 2020, there were no outstanding advances under the Federal Reserve Bank discount window line.

At September 30, 2021, fixed-rate Federal Home Loan Bank (“FHLB”) advances totaled $355.0 million, with interest rates ranging from 0.00% to 0.22% and maturities ranging from November 2021 to May 2022. Advances from the FHLB are collateralized by residential real estate loans, commercial real estate loans, and securities. The Bank’s maximum borrowing capacity is limited to 35% of total assets. Required investment in FHLB stock is $4.50 for every $100 in advances.

Securities sold under agreements to repurchase represent a demand deposit product offered to customers that sweep balances in excess of the FDIC insurance limit into overnight repurchase agreements. The Company pledges securities as collateral for the repurchase agreements. Refer to Note 3—Securities for additional discussion.

On October 13, 2016, the Company entered into a $30.0 million revolving credit agreement with a correspondent bank. Through subsequent amendments, the revolving credit agreement was reduced to $15.0 million and the maturity of the credit facility was extended to October 9, 2020. The amended revolving line of credit bears interest at either the London Interbank Offered Rate (“LIBOR”) plus 195 basis points or the Prime Rate minus 75 basis points, not to be less than 2.00%, based on the Company’s election, which is required to be communicated at least three business days prior to the commencement of an interest period. If the Company fails to provide timely notification, the interest rate will be Prime Rate minus 75 basis points. At September 30, 2021 and December 31, 2020, the line of credit had no outstanding balance. On October 8, 2021, the Company extended the maturity of the credit facility to October 7, 2022.

The following table presents short-term credit lines available for use as of September 30, 2021 and December 31, 2020:

	September 30,		December 31,
	2021		2020
Federal Home Loan Bank line	$	1,910,295	$	2,016,212
Federal Reserve Bank of Chicago discount window line		622,306		874,677
Available federal funds lines		115,000		115,000

The Company hedges interest rates on borrowed funds using interest rate swaps through which the Company receives variable amounts and pays fixed amounts. Refer to Note 16—Derivative Instruments and Hedging Activities for additional discussion.

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Subordinated Notes and Junior Subordinated Debentures

9 Months Ended

Sep. 30, 2021

Debt Disclosure [Abstract]

Subordinated Notes and Junior Subordinated Debentures

Note 13—Subordinated Notes and Junior Subordinated Debentures

In 2020, the Company issued $75.0 million in fixed-to-floating subordinated notes that mature on July 1, 2030. The subordinated notes bear a fixed interest rate of 6.00% until July 1, 2025 and a floating interest rate equal to a benchmark rate, which is expected to be the three-month Secured Overnight Financing Rate, plus 588 basis points thereafter until maturity. The transaction resulted in debt issuance costs of approximately $1.7 million that will be amortized over 10 years.

As of September 30, 2021, the net liability outstanding of the subordinated notes was $73.5 million. The Company may, at its option, redeem the notes, in whole or in part, on a semi-annual basis beginning on July 1, 2025, subject to obtaining the prior approval of the Federal Reserve to the extent such approval is then required. The subordinated notes qualify as Tier 2 capital for regulatory capital purposes.

At September 30, 2021 and December 31, 2020, the Company’s junior subordinated debentures by issuance were as follows:

Name of Trust	Aggregate Principal Amount September 30, 2021			Aggregate Principal Amount December 31, 2020			Stated Maturity	Contractual Rate at September 30, 2021			Interest Rate Spread
Metropolitan Statutory Trust 1	$	35,000		$	35,000		March 17, 2034		2.91	%	Three-month LIBOR + 2.79%
First Evanston Bancorp Trust I		10,000			10,000		March 15, 2035		1.90	%	Three-month LIBOR + 1.78%
Total liability, at par		45,000			45,000
Discount		(8,204	)		(8,549	)
Total liability, at carrying value	$	36,796		$	36,451

In 2004, the Company’s predecessor, Metropolitan Bank Group, Inc., issued $35.0 million floating rate junior subordinated debentures to Metropolitan Statutory Trust 1, which was formed for the issuance of trust preferred securities. The debentures bear interest at three-month LIBOR plus 2.79% (2.91% and 3.02% at September 30, 2021 and December 31, 2020, respectively). Interest is paid on a quarterly basis. The Company has the right to redeem the debentures, in whole or in part, on any interest payment date on or after March 2009. Accrued interest payable was $41,000 and $45,000 as of September 30, 2021 and December 31, 2020, respectively.

As part of the First Evanston acquisition, the Company assumed the obligations to First Evanston Bancorp Trust I of $10.0 million in principal amount, which was formed for the issuance of trust preferred securities. Beginning on March 15, 2010, the interest rate reset to the three-month LIBOR plus 1.78% (1.90% and 2.00% at September 30, 2021 and December 31,

2020, respectively), which is in effect until the debentures mature in 2035. Interest is paid on a quarterly basis. The Company has the right to redeem the debentures, in whole or in part, on any interest payment date on or after March 2010. The Company has the option to defer interest payments on the debentures from time to time for a period not to exceed five consecutive years. Accrued interest payable was $8,000 and $9,000 as of September 30, 2021 and December 31, 2020, respectively.

The Trusts are not consolidated with the Company. Accordingly, the Company reports the subordinated debentures held by the Trusts as liabilities. The Company owns all of the common securities of each trust. The junior subordinated debentures qualify, and are treated as, Tier 1 regulatory capital of the Company subject to regulatory limitations. The trust preferred securities issued by each trust rank equally with the common securities in right of payment, except that if an event of default under the indenture governing the notes has occurred and is continuing, the preferred securities will rank senior to the common securities in right of payment.

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Commitments and Contingent Liabilities

9 Months Ended

Sep. 30, 2021

Commitments And Contingencies Disclosure [Abstract]

Commitments and Contingent Liabilities

Note 14—Commitments and Contingent Liabilities

Legal contingencies—In the ordinary course of business, the Company and Bank have various outstanding commitments and contingent liabilities that are not recognized in the accompanying consolidated financial statements. In addition, the Company may be a defendant in certain claims and legal actions arising in the ordinary course of business. In the opinion of management, after consultation with legal counsel, the ultimate disposition of these matters is currently not expected to have a material adverse effect on the Company’s Consolidated Financial Statements.

Operating lease commitments—Refer to Note 8—Lease for discussion of operating lease commitments.

Commitments to extend credit—The Company is party to financial instruments with off-balance sheet risk in the normal course of business to meet the financing needs of its customers. These financial instruments include commitments to extend credit and standby letters of credit. Those instruments involve, to varying degrees, elements of credit and interest rate risk in excess of the amount recognized in the Consolidated Statements of Financial Condition. The contractual or notional amounts of those instruments reflect the extent of involvement the Company has in particular classes of financial instruments.

The Company’s exposure to credit loss in the event of non-performance by the other party to the financial instrument for commitments to extend credit and letters of credit is represented by the contractual or notional amount of those instruments. The Company uses the same credit policies in making commitments and conditional obligations as it does for funded instruments. The Company does not anticipate any material losses as a result of the commitments and letters of credit.

The following table summarizes the contract or notional amount of outstanding loan and lease commitments at September 30, 2021 and December 31, 2020:

	September 30, 2021						December 31, 2020
	Fixed Rate		Variable Rate		Total		Fixed Rate		Variable Rate		Total
Commitments to extend credit	$	173,848	$	1,520,986	$	1,694,834	$	106,183	$	1,261,872	$	1,368,055
Letters of credit		653		58,479		59,132		652		58,120		58,772
Total	$	174,501	$	1,579,465	$	1,753,966	$	106,835	$	1,319,992	$	1,426,827

Commitments to extend credit are agreements to lend to a customer as long as there is no violation of any condition established in the contract. Commitments generally have fixed expiration dates or other termination clauses and may require payment of a fee. Since many of the commitments are expected to expire without being drawn upon, the total commitment amount does not necessarily represent future cash requirements. The Company evaluates each customer’s creditworthiness on a case-by-case basis. The amount of collateral obtained, if deemed necessary by the Company upon extension of credit, is based on management’s credit evaluation of the counterparty. Collateral is primarily obtained in the form of commercial and residential real estate (including income producing commercial properties).

Letters of credit are conditional commitments issued by the Company to guarantee to a third-party the performance of a customer. Those guarantees are primarily issued to support public and private borrowing arrangements, bond financing and similar transactions. The credit risk involved in issuing letters of credit is essentially the same as that involved in extending loan facilities to customers.

Commitments to make loans are generally made for periods of 90 days or less. The fixed rate loan commitments have interest rates ranging from 1.25% to 18.00% and maturities up to 2050. Variable rate loan commitments have interest rates ranging from 1.25% to 8.25% and maturities up to 2044.

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Fair Value Measurement

9 Months Ended

Sep. 30, 2021

Fair Value Disclosures [Abstract]

Fair Value Measurement

Note 15—Fair Value Measurement

Fair value is the exchange price that would be received for an asset or paid to transfer a liability (exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. In addition, the Company has the ability to obtain fair values for markets that are not accessible.

These types of inputs create the following fair value hierarchy:

Level 1—Quoted prices in active markets for identical assets or liabilities.

Level 2—Quoted prices for similar instruments in active markets, quoted prices for identical or similar instruments in markets that are not active and model-derived valuations whose inputs are observable or whose significant value drivers are observable.

Level 3—Unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the asset or liability. Unobservable inputs are used to measure fair value to the extent that observable inputs are not available. The Company’s own data used to develop unobservable inputs may be adjusted for market considerations when reasonably available.

The categorization within the valuation hierarchy is based upon the lowest level of input that is significant to the fair value measurement. The Company’s assessment of the significance of a particular input to the fair value measurement in its entirety requires judgment, and considers factors specific to assets and liabilities.

The Company used the following methods and significant assumptions to estimate fair value for certain assets measured and carried at fair value on a recurring basis:

Securities available-for-sale—The Company obtains fair value measurements from an independent pricing service. Management reviews the procedures used by the third party, including significant inputs used in the fair value calculations. The fair value measurements consider observable data that may include dealer quotes, market spreads, cash flows, the U.S. Treasury yield curve, live trading levels, trade execution data, market consensus prepayment speeds, credit information and the bond’s terms and conditions, among other things. When market quotes are not readily accessible or available, alternative approaches are utilized, such as matrix or model pricing.

The Company’s methodology for pricing non-rated bonds focuses on three distinct inputs: equivalent rating, yield and other pricing terms. To determine the rating for a given non-rated municipal bond, the Company references a publicly issued bond by the same issuer if available as well as other additional key metrics to support the credit worthiness. Typically, pricing for these types of bonds would require a higher yield than a similar rated bond from the same issuer. A reduction in price is applied to the rating obtained from the comparable bond, as the Company believes if liquidated, a non-rated bond would be valued less than a similar bond with a verifiable rating. The reduction applied by the Company is one notch lower (i.e. a “AA” rating for a comparable bond would be reduced to “AA-” for the Company’s valuation). In 2021 and 2020, all of the ratings derived by the Company were “BBB” or better with and without comparable bond proxies. The fair value measurement of municipal bonds is sensitive to the rating input, as a higher rating typically results in an increased valuation. The remaining pricing inputs used in the bond valuation are observable. Based on the rating determined, the Company obtains a corresponding current market yield curve available to market participants. Other terms including coupon, maturity date, redemption price, number of coupon payments per year, and accrual method are obtained from the individual bond term sheets.

Equity and other securities—The Company utilizes the same fair value measurement methodology for equity and other securities as detailed in the securities available-sale portfolio above.

Servicing assets—Fair value is based on a loan-by-loan basis taking into consideration the original term to maturity, the current age of the loan and the remaining term to maturity. The valuation methodology utilized for the servicing assets begins with generating estimated future cash flows for each servicing asset, based on their unique characteristics and market-based assumptions for prepayment speeds and costs to service. The present value of the future cash flows are then calculated utilizing market-based discount rate assumptions.

Derivative instruments—Interest rate derivatives are valued by a third party, using models that primarily use market observable inputs, such as yield curves, and are validated by comparison with valuations provided by the respective

counterparties. Derivative financial instruments are included in other assets and other liabilities in the Consolidated Statements of Financial Condition.

The following tables summarize the Company’s financial assets and liabilities that were measured at fair value on a recurring basis at September 30, 2021 and December 31, 2020:

			Fair Value Measurements Using
September 30, 2021	Fair Value		Level 1		Level 2		Level 3
Financial assets
Securities available-for-sale
U.S. Treasury Notes	$	8,578	$	8,578	$	—	$	—
U.S. Government agencies		123,264		—		123,264		—
Obligations of states, municipalities, and political    subdivisions		105,060		—		105,060		—
Mortgage-backed securities; residential
Agency		785,173		—		785,173		—
Non-Agency		64,009		—		64,009		—
Mortgage-backed securities; commercial
Agency		237,409		—		237,409		—
Corporate securities		66,827		—		66,827		—
Asset-backed securities		37,285		—		37,285		—
Equity and other securities, at fair value
Mutual funds		4,424		4,424		—		—
Equity securities		5,875		—		5,189		686
Servicing assets		23,597		—		—		23,597
Derivative assets		13,463		—		13,463		—
Financial liabilities
Derivative liabilities		12,348		—		12,348		—

			Fair Value Measurements Using
December 31, 2020	Fair Value		Level 1		Level 2		Level 3
Financial assets
Securities available-for-sale
U.S. Treasury Notes	$	23,812	$	23,812	$	—	$	—
U.S. Government agencies		113,551		—		113,551		—
Obligations of states, municipalities, and political    subdivisions		142,419		—		142,419
Mortgage-backed securities; residential
Agency		778,391		—		778,391		—
Non-Agency		32,981		—		32,981		—
Mortgage-backed securities; commercial
Agency		250,152		—		250,152		—
Corporate securities		60,768		—		60,768		—
Asset-backed securities		45,156		—		45,156		—
Equity and other securities, at fair value
Mutual funds		2,983		2,983		—		—
Equity securities		5,781		—		5,096		685
Servicing assets		22,042		—		—		22,042
Derivative assets		17,149		—		17,149		—
Financial liabilities
Derivative liabilities		18,133		—		18,133		—

The Company did not have any transfers to or from Level 3 of the fair value hierarchy during the nine months ended September 30, 2021 and 2020.

The following table presents additional information about financial assets measured at fair value on recurring basis for which the Company used significant unobservable inputs (Level 3):

	Nine Months Ended September 30,
	2021		2020			2021			2020
	Investment Securities					Servicing Assets
Balance, beginning of period	$	685	$	700		$	22,042		$	19,471
Additions, net		—		—			5,703			4,449
Change in fair value		1		(16	)		(4,148	)		(2,653	)
Balance, end of period	$	686	$	684		$	23,597		$	21,267

The following table presents additional information about the unobservable inputs used in the fair value measurements on recurring basis that were categorized within Level 3 of the fair value hierarchy as of September 30, 2021:

Financial Instruments	Valuation Technique	Unobservable Inputs	Range of Inputs	Weighted Average Range			Impact to Valuation from an Increased or Higher Input Value
Single issuer trust preferred	Discounted cash flow	Discount rate	3.1% - 6.4%		4.5	%	Decrease
Servicing assets	Discounted cash flow	Prepayment speeds	0.5% - 31.8%		14.3	%	Decrease
		Discount rate	(3.0)% - 50.0%		8.1	%	Decrease
		Expected weighted average loan life	0.2 - 8.5 years	3.9 years			Increase

The Company used the following methods and significant assumptions to estimate fair value for certain assets measured and carried at fair value on a non-recurring basis:

Impaired loans (excluding acquired impaired loans)—Impaired loans, other than those existing on the date of a business acquisition, are primarily carried at the fair value of the underlying collateral, less estimated costs to sell, if the loan is collateral dependent. Valuations of impaired loans that are collateral dependent are supported by third party appraisals in accordance with the Bank’s credit policy. Other valuation methods include analysis of discounted cash flows, which measures the present value of expected future cash flows discounted at the loan’s effective interest rate. Impaired loans that are not collateral dependent are not material.

Assets held for sale—Assets held for sale consist of former branch locations and real estate previously purchased for expansion. Assets are considered held for sale when management has approved to sell the assets following a branch closure or other events. The properties are being actively marketed and transferred to assets held for sale based on the lower of carrying value or its fair value, less estimated costs to sell. The Company records assets held for sale on the Consolidated Statements of Financial Condition within accrued interest receivable and other assets.

Other real estate owned—Certain assets held within other real estate owned represent real estate or other collateral that has been adjusted to its estimated fair value, less cost to sell, as a result of transferring from the loan portfolio at the time of foreclosure or repossession and based on management’s periodic impairment evaluation. From time to time, non-recurring fair value adjustments to other real estate owned are recorded to reflect partial write-downs based on an observable market price or current appraised value of property.

Adjustments to fair value based on such non-recurring transactions generally result from the application of lower-of-cost-or-market accounting or write-downs of individual assets due to impairment. The following tables summarize the

Company’s assets that were measured at fair value on a non-recurring basis, excluding acquired impaired loans, as of September 30, 2021 and December 31, 2020:

			Fair Value Measurements Using
September 30, 2021	Fair Value		Level 1		Level 2		Level 3
Non-recurring
Impaired loans (excluding acquired impaired loans)
Commercial real estate	$	37,143	$	—	$	—	$	37,143
Residential real estate		3,946		—		—		3,946
Commercial and industrial		21,547		—		—		21,547
Assets held for sale		10,982		—		—		10,982
Other real estate owned		3,033		—		—		3,033

			Fair Value Measurements Using
December 31, 2020	Fair Value		Level 1		Level 2		Level 3
Non-recurring
Impaired loans (excluding acquired impaired loans)
Commercial real estate	$	41,135	$	—	$	—	$	41,135
Residential real estate		1,752		—		—		1,752
Commercial and industrial		28,508		—		—		28,508
Assets held for sale		13,023		—		—		13,023
Other real estate owned		6,350		—		—		6,350

The following methods and assumptions were used by the Company in estimating fair values of other assets and liabilities for disclosure purposes:

Cash and cash equivalents—For these short-term instruments, the carrying amount is a reasonable estimate of fair value.

Securities held-to-maturity—The Company obtains fair value measurements from an independent pricing service. Management reviews the procedures used by the third party, including significant inputs used in the fair value calculations. The fair value measurements consider observable data that may include dealer quotes, market spreads, cash flows, the U.S. Treasury yield curve, live trading levels, trade execution data, market consensus prepayment speeds, credit information and the bond’s terms and conditions, among other things. When market quotes are not readily accessible or available, alternative approaches are utilized, such as matrix or model pricing.

Restricted stock—The fair value has been determined to approximate cost.

Loans held for sale—The fair value of loans held for sale are based on quoted market prices, where available, and determined by discounted estimated cash flows using interest rates approximating the Company’s current origination rates for similar loans adjusted to reflect the inherent credit risk.

Loan and lease receivables, net—For certain variable rate loans that reprice frequently and with no significant changes in credit risk, fair value is estimated at carrying value. The fair value of other types of loans is estimated using an exit price notion. It is estimated by discounting future cash flows, using current rates at which similar loans would be made to borrowers with similar credit ratings and for the same remaining maturities.

Deposits—The fair value of demand deposits, savings accounts, and certain money market deposits is the amount payable on demand at the reporting date. The fair value of fixed-maturity certificates of deposit is estimated by discounting future cash flows, using rates currently offered for deposits of similar remaining maturities.

Paycheck Protection Program Liquidity Facility—The carrying amount approximates fair value.

Federal Home Loan Bank advances—The fair value of FHLB advances is estimated by discounting the agreements based on maturities using rates currently offered for FHLB advances of similar remaining maturities adjusted for prepayment penalties that would be incurred if the borrowings were paid off on the measurement date.

Securities sold under agreements to repurchase—The carrying amount approximates fair value due to maturities of less than ninety days.

Subordinated notes—The fair value is based on available market prices.

Junior subordinated debentures—The fair value of junior subordinated debentures, in the form of trust preferred securities, is determined using rates currently available to the Company for debt with similar terms and remaining maturities.

Accrued interest receivable and payable—The carrying amount approximates fair value.

Commitments to extend credit and letters of credit—The fair values of these off-balance sheet commitments to extend credit and commercial and letters of credit are not considered practicable to estimate because of the lack of quoted market prices and the inability to estimate fair value without incurring excessive costs.

The estimated fair values of financial instruments not carried at fair value and levels within the fair value hierarchy are as follows:

			September 30,				December 31,
	Fair Value		2021				2020
	Hierarchy Level		Carrying Amount		Estimated Fair Value		Carrying Amount		Estimated Fair Value
Financial assets
Cash and due from banks		1	$	46,900	$	46,900	$	41,432	$	41,432
Interest bearing deposits with other banks		2		95,978		95,978		41,988		41,988
Securities held-to-maturity		2		3,887		4,033		4,395		4,573
Other restricted stock		2		15,927		15,927		10,507		10,507
Loans held for sale		3		48,372		54,739		7,924		8,848
Loans and lease receivables, net (less impaired    loans at fair value)		3		4,485,994		4,478,323		4,202,793		4,205,906
Accrued interest receivable		3		18,857		18,857		20,678		20,678
Financial liabilities
Non-interest-bearing deposits		2		2,117,749		2,117,749		1,762,676		1,762,676
Interest-bearing deposits		2		3,040,529		3,041,101		2,989,355		2,990,735
Accrued interest payable		2		1,687		1,687		1,478		1,478
Paycheck Protection Program Liquidity Facility		2		156,404		156,404		371,907		371,907
Federal Home Loan Bank advances		2		355,000		355,000		234,000		234,000
Securities sold under repurchase agreement		2		27,715		27,715		41,994		41,994
Subordinated notes		2		73,473		83,291		73,342		76,627
Junior subordinated debentures		3		36,796		40,777		36,451		40,543

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Derivative Instruments and Hedge Activities

9 Months Ended

Sep. 30, 2021

Derivative Instruments And Hedging Activities Disclosure [Abstract]

Derivative Instruments and Hedge Activities

Note 16—Derivative Instruments and Hedge Activities

As required by ASC 815, the Company records all derivatives on the balance sheet at fair value. The accounting for changes in the fair value of derivatives depends on the intended use of the derivative, whether the Company has elected to designate a derivative in a hedging relationship and apply hedge accounting and whether the hedging relationship has satisfied the criteria necessary to apply hedge accounting. The Company records derivative assets and derivative liabilities on the Consolidated Statements of Financial Condition within accrued interest receivable and other assets and accrued interest payable and other liabilities, respectively. The following tables present the fair value of the Company’s derivative financial instruments and classification on the Consolidated Statements of Financial Condition as of September 30, 2021 and December 31, 2020:

	September 30, 2021							December 31, 2020
			Fair Value							Fair Value
	Notional Amount		Other Assets		Other Liabilities			Notional Amount		Other Assets		Other Liabilities
Derivatives designated as hedging instruments
Interest rate swaps designated as cash flow    hedges		400,000	$	1,799	$	(192	)	$	—	$	—	$	—
Derivatives not designated as hedging   instruments
Other interest rate derivatives		458,698		11,664		(12,148	)		383,410		17,149		(18,116	)
Other credit derivatives		7,788		—		(8	)		8,437		—		(17	)
Total derivatives	$	866,486	$	13,463	$	(12,348	)	$	391,847	$	17,149	$	(18,133	)

Interest rate swaps designated as cash flow hedges—Cash flow hedges of interest payments associated with certain other borrowings had notional amounts totaling $400.0 million as of September 30, 2021. There were no cash flow hedges outstanding at December 31, 2020. The Company assesses the effectiveness of each hedging relationship by comparing the changes in fair value of the derivatives hedging instrument with the fair value of the designated hedged transactions. As of September 30, 2021, the cash flow hedges aggregating $400.0 million in notional amounts are comprised of five forward starting pay fixed interest rate swaps, of which one for $100.0 million is effective in March 2022; one for $50.0 million is effective in September 2022; two totaling $200.0 million are effective in March 2023; and one for $50.0 million is effective May 2023.

Included in other comprehensive income is the remaining balance related to previously terminated interest rate swaps designated as cash flow hedges of $253,000 as of September 30, 2021 and $304,000 as of December 31, 2020. These are amortized over the original life of the cash flow hedge. Interest recorded on these swap transactions was $29,000 and $22,000 during the three months ended September 30, 2021, and 2020, respectively, and is reported as a component of interest expense on other borrowings. Interest recorded on these swap transactions was $71,000 and $64,000 during the nine months ended September 30, 2021, and 2020, respectively, and is reported as a component of interest expense on other borrowings. As of September 30, 2021, the Company estimates $868,000 of the unrealized loss to be reclassified as an increase to interest expense during the next twelve months.

The following table reflects the cash flow hedges as of September 30, 2021:

Notional amounts	$	400,000
Derivative assets fair value		1,799
Derivative liabilities fair value		192
Weighted average maturity	5.2 years

The weighted average pay rates of the forward swaps are 0.98% and weighted average receive rates will be determined at the time the forward swaps become effective.

The following table reflects the net gains (losses) recorded in accumulated other comprehensive income (loss) and the Consolidated Statements of Operations relating to the cash flow derivative instruments for the nine months ended:

	September 30, 2021							September 30, 2020
	Amount of Loss Recognized in OCI		Amount of Loss Reclassified from OCI to Income as an Increase to Interest Expense			Amount of Gain (Loss) Recognized in Other Non-Interest Income		Amount of Loss Recognized in OCI		Amount of Loss Reclassified from OCI to Income as an Increase to Interest Expense			Amount of Gain (Loss) Recognized in Other Non-Interest Income
Interest rate swaps	$	1,606	$	(71	)	$	—	$	—	$	(64	)	$	—

Derivatives not designated as hedges are not speculative and are used to manage the Company’s exposure to interest rate movements and other identified risks but do not meet the strict hedge accounting requirements and/or the Company has not elected to apply hedge accounting. Changes in the fair value of derivatives not designated in hedging relationships are recorded directly in earnings.

Other interest rate derivatives—The total combined notional amount was $458.7 million as of September 30, 2021 with maturities ranging from January 2022 to September 2031. The fair values of the interest rate derivative agreements are reflected in other assets and other liabilities with corresponding gains or losses reflected in non-interest income. During the three months ended September 30, 2021 and 2020, there were $134,000 and $41,000 of net transaction fees, respectively, included in other non-interest income, related to these derivative instruments. During the nine months ended September 30, 2021 and 2020, there were $840,000 and $700,000 of net transaction fees, respectively, included in other non-interest income, related to these derivative instruments.

These instruments are inherently subject to market risk and credit risk. Market risk is associated with changes in interest rates and credit risk relates to the Company’s risk of loss when the counterparty to a derivative contract fails to perform according to the terms of the agreement. Market and credit risks are managed and monitored as part of the Company’s overall asset-liability management process. The credit risk related to derivatives entered into with certain qualified borrowers is managed through the Company’s loan underwriting process. The Company’s loan underwriting process also approves the Bank’s swap counterparty used to mirror the borrowers’ swap. The Company has a bilateral agreement with each swap counterparty that provides that fluctuations in derivative values are to be fully collateralized with either cash or securities.

The following table reflects other interest rate derivatives as of September 30, 2021:

Notional amounts	$	458,698
Derivative assets fair value		11,664
Derivative liabilities fair value		12,148
Weighted average pay rates		4.23	%
Weighted average receive rates		3.03	%
Weighted average maturity	5.6 years

Other credit derivatives— The Company has entered into risk participation agreements with counterparty banks to assume a portion of the credit risk related to borrower transactions. The credit risk related to these other credit derivatives is managed through the Company’s loan underwriting process. The total notional amount was $7.8 million and $8.4 million as of September 30, 2021 and December 31, 2020, respectively. The fair value of the other credit derivatives are reflected in other liabilities with corresponding gains or losses reflected in non-interest income.

The Company has agreements with its derivative counterparties that contain a cross-default provision under which if the Company defaults on any of its indebtedness, including default where repayment of the indebtedness has not been accelerated by the lender, then the Company could also be declared in default on its derivative obligations. The Company also has agreements with certain derivative counterparties that contain a provision where if the Company fails to maintain its status as a well or adequately capitalized institution, then the counterparty could terminate the derivative positions and the Company would be required to settle its obligations resulted in a net asset position.

The following table reflects amounts included in non-interest income in the Consolidated Statements of Operations relating to derivative instruments that are not designated in a hedging relationship for the nine months ended September 30, 2021 and 2020:

	Three Months Ended				Nine Months Ended
	September 30,				September 30,
	2021		2020		2021		2020
Other interest rate derivatives	$	98	$	113	$	482	$	(627	)
Other credit derivatives		2		3		9		(8	)
Total	$	100	$	116	$	491	$	(635	)

The Company records interest rate derivatives subject to master netting agreements at their gross value and does not offset derivative asset and liabilities on the Consolidated Statements of Financial Condition. The table below summarizes the Company’s interest rate derivatives and offsetting positions as of:

	September 30, 2021						December 31, 2020
	Derivative Assets Fair Value			Derivative Liabilities Fair Value			Derivative Assets Fair Value			Derivative Liabilities Fair Value
Gross amounts recognized	$	13,463		$	(12,348	)	$	17,149		$	(18,133	)
Less: Amounts offset in the Consolidated Statements of    Financial Condition		—			—			—			—
Net amount presented in the Consolidated Statements of    Financial Condition	$	13,463		$	(12,348	)	$	17,149		$	(18,133	)
Gross amounts not offset in the Consolidated Statements of    Financial Condition
Offsetting derivative positions		(1,814	)		1,814			—			—
Collateral posted		(11,649	)		9,740			(17,149	)		18,133
Net credit exposure	$	—		$	(794	)	$	—		$	—

As of September 30, 2021, the fair value of derivatives in a net liability position, which includes accrued interest but excludes any adjustment for nonperformance risk, related to these agreements was $12.3 million. The Company has posted $9.7 million collateral related to these agreements as of September 30, 2021. If the Company had breached any of these provisions at September 30, 2021, it could have been required to settle its obligations under the agreements at their termination value less offsetting positions of $1.8 million. For purposes of this disclosure, the amount of posted collateral by the Company and counterparties is limited to the amount offsetting the derivative asset and derivative liability.

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Share-Based Compensation

9 Months Ended

Sep. 30, 2021

Disclosure Of Compensation Related Costs Sharebased Payments [Abstract]

Share-Based Compensation

Note 17 – Share-Based Compensation

In June 2017, the Company adopted the 2017 Omnibus Incentive Compensation Plan (the “Omnibus Plan”) in connection with our IPO. The Omnibus Plan provides for the grant of stock options, stock appreciation rights, restricted stock, restricted stock units, dividend equivalent rights and other equity-based, equity-related or cash-based awards. A total of 1,550,000 shares of our common stock have been reserved for issuance under the Omnibus Plan. As of September 30, 2021, there were 698,331 shares available for future grants under the Omnibus Plan.

The Company primarily grants time-based restricted share awards that vest over a one to four year period, subject to continued employment. The Company also grants performance-based restricted share awards. The number of shares which may be earned under the award is dependent upon the Company’s return on average assets, weighted equally, over a three-year period, measured against a peer group consisting of publicly-traded bank holding companies. Results will be measured cumulatively at the end of the three years. Any earned shares will vest on the third anniversary of the grant date.

During 2021, the Company granted 308,452 shares of restricted common stock, par value $0.01 per share. Of this total, 119,344 restricted shares will vest ratably over four years on each anniversary of the grant date, 109,475 restricted shares will vest ratably on the last business day of 2021, 2022 and 2023, 38,279 restricted shares will vest ratably over three years on each anniversary of the grant date, 9,141 restricted shares will cliff vest on the third anniversary of the grant date, and 130 shares have vested, all subject to continued employment.

In addition, 32,083 performance-based restricted shares were included in the February 2021 grant. The number of shares which may be earned under the award is dependent upon the Company’s return on average assets, weighted equally, over a three-year period ending December 31, 2023, measured against a peer group consisting of publicly-traded bank holding companies. Results will be measured cumulatively at the end of the three years. Any earned shares will vest on the third anniversary of the grant date.

The following table discloses the changes in restricted shares for the nine months ended September 30, 2021:

	Omnibus Plan
	Number of Shares			Weighted Average Grant Date Fair Value
Beginning balance, January 1, 2021		383,539		$	18.75
Granted		308,452			19.38
Vested		(103,187	)		19.52
Forfeited		(9,740	)		20.58
Ending balance outstanding at September 30, 2021		579,064		$	18.92

A total of 103,187 restricted shares vested during the nine months ended September 30, 2021. A total of 113,264 restricted shares vested during the year ended December 31, 2020. The fair value of restricted shares that vested during the nine months ended September 30, 2021 was $2.2 million. The fair value of restricted shares that vested during the year ended December 31, 2020 was $1.4 million.

The Company recognizes share-based compensation based on the estimated fair value of the restricted stock at the grant date. Share-based compensation expense is included in non-interest expense in the Consolidated Statements of Operations.

The following table summarizes restricted stock compensation expense for the nine months ended September 30, 2021 and 2020:

	Nine Months Ended September 30,
	2021		2020
Total share-based compensation - restricted stock	$	2,966	$	2,019
Income tax benefit		826		562
Unrecognized compensation expense		7,840		5,566
Weighted-average amortization period remaining	2.4 years		2.4 years

The fair value of the unvested restricted stock awards at September 30, 2021 was $14.2 million.

In October 2014, the Company adopted the Byline Bancorp, Inc. Equity Incentive Plan (“BYB Plan”). The maximum number of shares available for grants under this plan was 2,476,122 shares. During 2016 and 2015, the Company granted options to purchase 212,400 and 1,634,568 shares, respectively; the Company did not grant any stock options during 2017. In June 2017, the Board of Directors terminated the BYB Plan and no future grants can be made under this plan. Options to purchase a total of 1,344,548 shares remain outstanding under the BYB Plan at September 30, 2021.

The types of stock options granted under the BYB Plan were Time Options and Performance Options. The exercise price of each option is equal to the fair value of the stock as of the date of grant. These option awards have vesting periods ranging from one to five years and have 10-year contractual terms. Stock volatility was computed as the average of the volatilities of peer group companies. All outstanding stock options were fully vested and exercisable at September 30, 2021.

The fair values of the stock options were determined using the Black-Scholes-Merton model for Time Options and a Monte Carlo simulation model for Performance Options.

The following table discloses the activity in shares subject to options and the weighted average exercise prices, in actual dollars, for the nine months ended September 30, 2021:

	BYB Plan
	Number of Shares			Weighted Average Exercise Price		Intrinsic Value		Weighted Average Remaining Contractual Term (in Years)
Beginning balance, January 1, 2021		1,390,579		$	11.36	$	5,724		4.4
Exercised		(46,031	)		13.66	$	359
Expired		—
Ending balance outstanding at September 30, 2021		1,344,548		$	11.28	$	17,851		3.7
Exercisable at September 30, 2021		1,344,548		$	11.28	$	17,851		3.7

A total of 46,031 stock options were exercised during the nine months ended September 30, 2021, proceeds of which were $629,000, with a related tax benefit of $100,000. A total of 19,496 stock options were exercised during the year ended December 31, 2020. During the year ended December 31, 2020, with proceeds of $253,000 and a related tax benefit of $39,000. No stock options vested during the three or nine months ended September 30, 2021.

The Company recognizes share-based compensation based on the estimated fair value of the option at the grant date. Forfeitures are estimated based upon industry standards. Share-based compensation expense is included in non-interest expense in the Consolidated Statements of Operations. The following table summarizes stock option compensation expense for the nine months ended September 30, 2021 and 2020:

	Nine Months Ended September 30,
	2021		2020
Total share-based compensation - stock options	$	—	$	7
Income tax benefit		—		2
Unrecognized compensation expense - stock options		—		—
Weighted-average amortization period remaining	0.0 years		0.0 years

There was no unrecognized stock option compensation expenses as of September 30, 2021.

Pursuant to the terms of the Merger Agreement, upon the Effective Time, each outstanding First Evanston Option held by a participant in the First Evanston Bancorp, Inc. Stock Incentive Plan (the “FEB Plan”) ceased to represent a right to acquire shares of First Evanston common stock and was assumed and converted automatically into a fully vested and exercisable adjusted option to purchase shares of Byline common stock (each an “Adjusted Option”). In accordance with the Merger Agreement, the number of shares of Byline common stock to which each such Adjusted Option relates is equal to the product (rounded down to the nearest whole share of Byline common stock) of: (a) the number of shares of First Evanston common stock subject to the First Evanston Option immediately prior to May 31, 2018, multiplied by (ii) 4.725. Each Adjusted Option has an exercise price per share of Byline common stock equal to the quotient (rounded up to the nearest whole cent) of (x) the per share exercise price of such First Evanston Option immediately prior to May 31, 2018, divided by (y) 4.725. The description of the conversion process is based on, and qualified by, the Merger Agreement.

The following table discloses the activity in shares subject to options under the FEB Plan and the weighted average exercise prices, in actual dollars, for the nine months ended September 30, 2021:

	FEB Plan
	Number of Shares			Weighted Average Exercise Price		Intrinsic Value		Weighted Average Remaining Contractual Term (in Years)
Beginning balance, January 1, 2021		233,630		$	11.52	$	918		3.3
Exercised		(46,774	)	$	11.55	$	313
Expired		—
Ending balance outstanding at September 30, 2021		186,856		$	11.52	$	2,437		3.3
Exercisable at September 30, 2021		186,856		$	11.52	$	2,437		3.3

A total of 46,774 stock options were exercised during the nine months ended September 30, 2021, proceeds of which were $540,000 and a related tax benefit of $87,000. A total of 255,615 stock options were exercised during the year ended December 31, 2020, proceeds of which were $2.8 million and a related tax benefit of $219,000. No stock options vested during the three or nine months ended September 30, 2021.

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Earnings per Share

9 Months Ended

Sep. 30, 2021

Earnings Per Share [Abstract]

Earnings per Share

Note 18—Earnings per Share

A reconciliation of the numerators and denominators for earnings per common share computations is presented below. Incremental shares represent outstanding stock options for which the exercise price is less than the average market price of the Company’s common stock during the periods presented. Options to purchase 1,531,404 and 1,676,371 shares of common stock were outstanding as of September 30, 2021 and 2020, respectively. There were 579,064 and 392,439 restricted stock awards outstanding at September 30, 2021 and 2020, respectively. For the three and nine months ended September 30, 2021, no stock options outstanding were excluded from the calculation of diluted earnings per common share. For the three and nine months ended September 30, 2020, 105,657 and 50,000 stock options outstanding were excluded from the calculation of diluted earnings per common share, as their effect would have been anti-dilutive.

The following represent the calculation of basic and diluted earnings per share for the periods presented:

	Three Months Ended September 30,				Nine Months Ended September 30,
	2021		2020		2021		2020
Net income	$	25,306	$	13,071	$	75,596	$	25,176
Less: Dividends on preferred shares		196		196		587		587
Net income available to common stockholders	$	25,110	$	12,875	$	75,009	$	24,589
Weighted-average common stock outstanding:
Weighted-average common stock outstanding (basic)		37,200,778		38,057,350		37,773,350		37,973,694
Incremental shares		817,523		191,985		749,762		278,269
Weighted-average common stock outstanding (dilutive)		38,018,301		38,249,335		38,523,112		38,251,963
Basic earnings per common share	$	0.68	$	0.34	$	1.99	$	0.65
Diluted earnings per common share	$	0.66	$	0.34	$	1.95	$	0.64

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Stockholders' Equity

9 Months Ended

Sep. 30, 2021

Equity [Abstract]

Stockholders' Equity

Note 19—Stockholders’ Equity

A summary of the Company’s preferred and common stock at September 30, 2021 and December 31, 2020 is as follows:

	September 30,		December 31,
	2021		2020
Series B 7.5% fixed to floating non-cumulative    perpetual preferred stock
Par value	$	0.01	$	0.01
Shares authorized		50,000		50,000
Shares issued		10,438		10,438
Shares outstanding		10,438		10,438
Common stock, voting
Par value	$	0.01	$	0.01
Shares authorized		150,000,000		150,000,000
Shares issued		39,170,541		38,736,540
Shares outstanding		37,690,087		38,618,054
Treasury shares		1,480,454		118,486

During 2016, the Company authorized and issued Series B 7.50% fixed-to-floating non-voting, noncumulative perpetual preferred stock with a liquidation preference of $1,000 per share, plus the amount of unpaid dividends, if any, which is redeemable at the Company’s option on or after March 31, 2022. Holders of Series B Preferred Stock do not have any rights to convert such stock into shares of any other class of capital stock of the Company. Holders of Series B Preferred Stock are entitled to receive a fixed dividend of 7.50% per annum from the original issue date through December 30, 2021, after which the dividend is paid at a floating rate of three-month LIBOR plus 5.41% per annum.

The Company Series B Preferred Stock is included in Tier 1 capital for regulatory capital purposes and is redeemable at the option of the Company at a redemption price of $1,000 per share, plus any declared and unpaid dividends (i) in whole or part on any dividend payment date on or after March 31, 2022, and (ii) in whole but not in part prior to March 31, 2022, within 90 days following a regulatory event, as defined in the Certificate of Designations of the Company Series B Preferred Stock. The Company must receive approval of the Federal Reserve Board prior to any redemption of the Company Series B Preferred Stock.

For the three months ended September 30, 2021 and 2020, the Company declared and paid dividends on the Series B preferred stock of $196,000. For the nine months ended September 30, 2021 and 2020, the Company declared and paid dividends on the Series B preferred stock of $587,000.

On December 10, 2020, the Company announced that its Board of Directors approved a stock repurchase program authorizing the purchase of up to an aggregate of 1,250,000 shares of the Company’s outstanding common stock, and on July 27, 2021, the Company's Board of Directors authorized an expansion of its current stock repurchase program. Under the extended program, the Company is authorized to repurchase an additional 1,250,000 shares of the Company's outstanding common stock. The shares may, at the discretion of management, be repurchased from time to time in open market purchases as market conditions warrant or in privately negotiated transactions. The Company is not obligated to purchase any shares under the program, and the program may be discontinued at any time. The actual timing, number and share price of shares purchased under the repurchase program will be determined by the Company at its discretion and will depend on a number of factors, including the market price of the Company’s stock, general market and economic conditions and applicable legal requirements. The shares authorized to be repurchased represent approximately 3.0% of the Company’s outstanding common stock at September 30, 2021. The program will be in effect until December 31, 2022 unless terminated earlier.

The Company purchased 460,220 shares at a cost of $10.4 million under this program during the three months ended September 30, 2021. The Company purchased 1,331,708 shares at a cost of $28.9 million under this program during the nine months ended September 30, 2021. Repurchased shares are recorded as treasury shares on the trade date using the treasury stock method, and the cash paid is recorded as treasury stock. Treasury stock acquired is recorded at cost and is carried as a reduction of stockholders’ equity in the Consolidated Statement of Financial Condition.

For the three and nine months ended September 30, 2021, cash dividends were declared and paid to stockholders of record of the Company's common stock of $0.09 per share and $0.21 per share, respectively. For the three and nine months ended September 30, 2020, cash dividends were declared and paid to stockholders of record of the Company's common stock of $0.03 per share and $0.09 per share, respectively.

On October 26, 2021, the Company’s Board of Directors declared a cash dividend of $0.09 per share payable on November 23, 2021 to stockholders of record of the Company’s common stock as of November 9, 2021.

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Consolidated Statements of Changes in Accumulated Other Comprehensive Income (Loss)

9 Months Ended

Sep. 30, 2021

Accumulated Other Comprehensive Income Loss Net Of Tax [Abstract]

Consolidated Statements of Changes in Accumulated Other Comprehensive Income (Loss)

Note 20—Consolidated Statements of Changes in Accumulated Other Comprehensive Income (Loss)

The following table summarizes the changes in accumulated other comprehensive income (loss) for the nine months ended September 30, 2021 and 2020:

(dollars in thousands)	Unrealized Gains (Losses) on Cash Flow Hedges			Unrealized Gains (Losses) on Available-for -Sale Securities			Total Accumulated Other Comprehensive Income (Loss)
Balance, January 1, 2020	$	(366	)	$	(334	)	$	(700	)
Other comprehensive income, net of tax		46			19,978			20,024
Balance, September 30, 2020	$	(320	)	$	19,644		$	19,324
Balance, January 1, 2021	$	(305	)	$	18,352		$	18,047
Other comprehensive income (loss), net of tax		1,211			(24,772	)		(23,561	)
Balance, September 30, 2021	$	906		$	(6,420	)	$	(5,514	)

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Basis of Presentation (Policies)

9 Months Ended

Sep. 30, 2021

Accounting Policies [Abstract]

Basis of Presentation

These unaudited interim condensed consolidated financial statements include the accounts of Byline Bancorp, Inc., a Delaware corporation (the “Company,” “Byline,” “we,” “us,” “our”), a bank holding company whose principal activity is the ownership and management of its Illinois state chartered subsidiary bank, Byline Bank (the “Bank”), based in Chicago, Illinois.

These unaudited interim condensed consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”) for interim financial information and in accordance with the instructions to Form 10-Q and Article 10 of Regulation S-X as promulgated by the Securities and Exchange Commission (“SEC”). In preparing these financial statements, the Company has evaluated events and transactions subsequent to September 30, 2021 for potential recognition or disclosure. In the opinion of management, all adjustments (consisting of normal recurring accruals) considered necessary for a fair presentation of the financial position and results of operations for the periods presented have been included. Certain information in footnote disclosures normally included in financial statements prepared in accordance with GAAP has been condensed or omitted pursuant to the rules and regulations of the SEC and the accounting standards for interim financial statements. These financial statements should be read in conjunction with the consolidated financial statements and notes thereto included in the Company’s Consolidated Financial Statements for the years ended December 31, 2020, 2019, and 2018.

In accordance with the Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) Topic 855, “Subsequent Events,” the Company’s management has evaluated subsequent events for potential recognition or disclosure through the date of the issuance of these condensed consolidated financial statements.

The Company has one reportable segment. The Company’s chief operating decision maker evaluates the operations of the Company using consolidated information for purposes of allocating resources and assessing performance. Therefore, segments disclosures are not required.

No subsequent events were identified that would have required a change to the condensed consolidated financial statements or disclosure in the notes to the condensed consolidated financial statements.

Certain prior period amounts have been reclassified to conform to current period presentation. These reclassifications did not result in any changes to previously reported net income or stockholders’ equity. 

Accounting Pronouncements Recently Adopted or Issued

The following reflect recent accounting pronouncements that have been adopted or are pending adoption by the Company. As the Company qualifies as an emerging growth company and has elected the extended transition period for complying with new or revised accounting pronouncements, it is not subject to new or revised accounting standards applicable to public companies during the extended transition period. The accounting pronouncements pending adoption below reflect effective dates for the Company as an emerging growth company with the extended transition period.

Adopted Accounting Pronouncement

Leases (Topic 842)— On January 1, 2021, the Company adopted ASU No. 2016-02 Leases and subsequent amendments thereto, which requires the Company to recognize most leases on the balance sheet. We adopted the standard under a modified retrospective approach as of the date of adoption and elected to apply several of the available practical expedients, including:

•Carry over of historical lease determination and lease classification conclusions

•Carry over of historical initial direct cost balances for existing leases

•Option not to recognize right-of-use assets and lease liabilities that arise from short-term leases (i.e. lease terms of twelve months or less)

•Use of hindsight in determining the lease term and right-of-use assets

•Accounting for lease and non-lease components in contracts in which the Company is a lessee as a single lease component

Adoption of the leasing standard resulted in the recognition of operating right-of-use assets of $10.5 million and operating lease liabilities of $11.7 million as of January 1, 2021. These amounts were determined based on the present value of remaining minimum lease payments, discounted using the Company’s incremental borrowing rate as of the date of adoption. This guidance also applies to the Company’s investment in direct financing leases, which are included in loans, but did not have a material impact. There was no material impact to the timing of expense or income recognition in the Company’s Consolidated Statements of Operations. Prior periods were not restated and continue to be presented under legacy GAAP. Refer to Note 8—Leases for further details.

Issued Accounting Pronouncements Pending Adoption

Financial Instruments—Credit Losses (Topic 326)—In June 2016, FASB issued ASU No. 2016‑13, Measurement of Credit Losses on Financial Instruments. Current GAAP requires an “incurred loss” methodology for recognizing credit losses that delays recognition until it is probable a loss has been incurred. The main objective of this ASU is to provide financial statement users with more decision-useful information about the expected credit losses on financial instruments and other commitments to extend credit held by a reporting entity at each reporting date. The amendments in this ASU replace the incurred loss impairment methodology in current GAAP with a methodology that reflects expected credit losses and requires consideration of a broader range of reasonable and supportable information to inform credit loss estimates. The amendments in this ASU require a financial asset (or group of financial assets) measured at amortized cost basis to be presented at the net amount expected to be collected. The allowance for credit losses is a valuation account that is deducted from the amortized cost basis of the financial asset(s) to present the net carrying value at the amount expected to be collected on the financial asset. The measurement of expected credit losses will be based on relevant information about past events, including historical experience, current conditions, and reasonable and supportable forecasts that affect the collectability of the reported amount. The amendments in this ASU broaden the information that an entity must consider in developing its expected credit loss estimate for assets measured either collectively or individually. The use of forecasted information incorporates more timely information in the estimate of expected credit loss, which will be more useful to users of the financial statements. In November 2019, FASB issued ASU No. 2019-10, Effective Dates, which delays the effective date of the ASU for entities not classified as a public business entity. Assuming the Company remains an emerging growth company, the Company anticipates adopting the standard on December 31, 2022. The Company is in the process of implementation and determining the impact that this ASU will have on the Company’s Consolidated Financial Statements.

Income Taxes (Topic 740)—In December 2019, FASB issued ASU No. 2019-12, Simplifying the Accounting for Income Taxes. The amendments in the ASU simplify the accounting for income taxes by removing the following: the exception to the incremental approach for intraperiod tax allocation when there is a loss from continuing operations and income or a gain from other items; the exception to the requirement to or not to recognize a deferred tax liability for a foreign entity when it becomes an equity method investment or it becomes a subsidiary, respectively; and the exception to the general methodology for calculating income taxes in an interim period when a year-to-date loss exceeds the anticipated loss for the year. The amendments in the ASU changes current authoritative guidance by requiring the recognition of franchise tax that is partially based on income as an income-based tax and account for any incremental amount incurred as a non-income-based tax; requiring an evaluation when a step up in the tax basis of goodwill should be considered part the of business combination; specifying that it is not required to allocate the consolidated amount of current and deferred tax expense to a legal entity that is

not subject to tax in its separate financial statements; and requiring that an entity reflect the effect of an enacted change in tax laws or rates in the annual effective tax rate computation in the interim period that includes the enactment date. The amendments are effective for annual periods beginning after December 15, 2021, and interim periods within annual periods beginning after December 15, 2022. Early adoption is permitted. Assuming the Company remains an emerging growth company, the new authoritative guidance will be effective for reporting periods after January 1, 2022. The Company is currently evaluating the provisions of ASU No. 2019-12 to determine the potential impact the new standard will have on the Company’s Consolidated Financial Statements.

Reference Rate Reform (Topic 848)—In March 2020, FASB issued ASU No. 2020-04, Facilitation of the Effects of Reference Rate Reform on Financial Reporting and in January 2021, the FASB issued ASU No. 2021-01, Reference Rate Reform. The amendments in the ASU provide optional guidance for a limited period of time to ease the potential burden in accounting for (or recognizing the effects of) reference rate reform on financial reporting. The amendments in the ASU provide optional expedients and exceptions for applying generally accepted accounting principles to contract modifications and hedging relationships, subject to meeting certain criteria, that reference LIBOR or another reference rate expected to be discontinued. The ASU is intended to help stakeholders during the global market-wide reference rate transition period. The amendments in the ASU will be in effect for all entities as of March 12, 2020 through December 31, 2022. The Company is currently evaluating the impact of reference rate reform to determine the potential impact the new standard will have on the Company’s Consolidated Financial Statements.

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Securities (Tables)

9 Months Ended

Sep. 30, 2021

Investments Debt And Equity Securities [Abstract]

Summary of Amortized Cost and Fair Values of Securities Available-for-sale, and Held to Maturity

The following tables summarize the amortized cost and fair values of securities available-for-sale and securities held-to-maturity as of the dates shown and the corresponding amounts of gross unrealized gains and losses:

September 30, 2021	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses			Fair Value
Available-for-sale
U.S. Treasury Notes	$	8,487	$	91	$	—		$	8,578
U.S. Government agencies		124,244		885		(1,865	)		123,264
Obligations of states, municipalities, and    political subdivisions		101,499		3,725		(164	)		105,060
Residential mortgage-backed securities
Agency		794,856		3,303		(12,986	)		785,173
Non-agency		64,645		86		(722	)		64,009
Commercial mortgage-backed securities
Agency		237,376		3,179		(3,146	)		237,409
Corporate securities		64,842		2,002		(17	)		66,827
Asset-backed securities		37,203		83		(1	)		37,285
Total	$	1,433,152	$	13,354	$	(18,901	)	$	1,427,605

September 30, 2021	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Fair Value
Held-to-maturity
Obligations of states, municipalities, and    political subdivisions	$	3,887	$	146	$	—	$	4,033
Total	$	3,887	$	146	$	—	$	4,033

December 31, 2020	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses			Fair Value
Available-for-sale
U.S. Treasury Notes	$	23,468	$	344	$	—		$	23,812
U.S. Government agencies		113,088		600		(137	)		113,551
Obligations of states, municipalities, and    political subdivisions		135,513		6,991		(85	)		142,419
Residential mortgage-backed securities
Agency		764,951		13,645		(205	)		778,391
Non-agency		32,654		332		(5	)		32,981
Commercial mortgage-backed securities
Agency		244,496		6,046		(390	)		250,152
Corporate securities		59,020		1,850		(102	)		60,768
Asset-backed securities		45,255		26		(125	)		45,156
Total	$	1,418,445	$	29,834	$	(1,049	)	$	1,447,230

December 31, 2020	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Fair Value
Held-to-maturity
Obligations of states, municipalities, and political    subdivisions	$	4,395	$	178	$	—	$	4,573
Total	$	4,395	$	178	$	—	$	4,573

Summary of Gross Unrealized Losses and Fair Values, Aggregated by Investment Category and Length of Individual Securities Continuous Unrealized Loss Position Available-for-sale and Held to Maturity

Gross unrealized losses and fair values, aggregated by investment category and length of time that individual securities have been in a continuous unrealized loss position as of September 30, 2021 and December 31, 2020, are summarized as follows:

			Less than 12 Months					12 Months or Longer					Total
September 30, 2021	# of Securities		Fair Value		Unrealized Losses			Fair Value		Unrealized Losses			Fair Value		Unrealized Losses
Available-for-sale
U.S. Government agencies		10	$	74,687	$	(1,506	)	$	9,641	$	(359	)	$	84,328	$	(1,865	)
Obligations of states,    municipalities and political    subdivisions		7		8,097		(164	)		—		—			8,097		(164	)
Residential mortgage-backed    securities
Agency		51		620,325		(12,626	)		11,805		(360	)		632,130		(12,986	)
Non-agency		5		34,310		(722	)		—		—			34,310		(722	)
Commercial mortgage-backed    securities
Agency		21		75,001		(2,369	)		26,823		(777	)		101,824		(3,146	)
Corporate securities		2		5,041		(17	)		—		—			5,041		(17	)
Asset-backed securities		1		4,997		(1	)		—		—			4,997		(1	)
Total		97	$	822,458	$	(17,405	)	$	48,269	$	(1,496	)	$	870,727	$	(18,901	)

			Less than 12 Months					12 Months or Longer					Total
December 31, 2020	# of Securities		Fair Value		Unrealized Losses			Fair Value		Unrealized Losses			Fair Value		Unrealized Losses
Available-for-sale
U.S. Government agencies		5	$	30,639	$	(137	)	$	—	$	—		$	30,639	$	(137	)
Obligations of states,    municipalities and political    subdivisions		2		210		(85	)		—		—			210		(85	)
Residential mortgage-backed    securities
Agency		8		45,253		(198	)		472		(7	)		45,725		(205	)
Non-agency		2		3,963		(5	)		—		—			3,963		(5	)
Commercial mortgage-backed    securities
Agency		8		55,554		(390	)		—		—			55,554		(390	)
Corporate securities		6		10,916		(102	)		—		—			10,916		(102	)
Asset-backed securities		6		24,436		(99	)		4,952		(26	)		29,388		(125	)
Total		37	$	170,971	$	(1,016	)	$	5,424	$	(33	)	$	176,395	$	(1,049	)

Summary of Proceeds From Sales of Securities Available-for-sale and Associated Gains and Losses

The proceeds from all sales of securities available-for-sale, and the associated gains and losses on sales and calls of securities, for the three and nine months ended September 30, 2021 and 2020 are listed below:

	For the Three Months Ended				For the Nine Months Ended
	September 30,				September 30,
	2021		2020		2021		2020
Proceeds	$	—	$	35,092	$	186,850	$	80,509
Gross gains		130		1,037		2,525		2,494
Gross losses		—		—		1,069		82

Schedule of Amortized Cost and Fair Value of Debt Securities by Contractual Maturity

At September 30, 2021, the amortized cost and fair value of debt securities are shown by contractual maturity. Expected maturities may differ from contractual maturities if borrowers have the right to call or prepay obligations with or without call or prepayment penalties. Securities not due at a single maturity date are shown separately.

	Amortized Cost		Fair Value
Available-for-sale
Due in one year or less	$	23,201	$	23,402
Due from one to five years		26,476		27,466
Due from five to ten years		209,435		211,691
Due after ten years		77,163		78,455
Mortgage-backed securities		1,096,877		1,086,591
Total	$	1,433,152	$	1,427,605
Held-to-maturity
Due from one to five years		3,887		4,033
Total	$	3,887	$	4,033

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Loan and Lease Receivables (Tables)

9 Months Ended

Sep. 30, 2021

Receivables [Abstract]

Schedule of Outstanding Loan and Lease Receivables

Outstanding loan and lease receivables as of the dates shown were categorized as follows:

	September 30,			December 31,
	2021			2020
Commercial real estate	$	1,615,875		$	1,416,731
Residential real estate		507,226			569,387
Construction, land development, and other land		340,428			231,602
Commercial and industrial		1,535,412			1,372,452
Paycheck Protection Program ("PPP")		275,619			527,044
Installment and other		1,396			1,942
Lease financing receivables		334,484			223,295
Total loans and leases		4,610,440			4,342,453
Net unamortized deferred fees and costs		(5,484	)		(5,764	)
Initial direct costs		4,272			3,846
Allowance for loan and lease losses		(60,598	)		(66,347	)
Net loans and leases	$	4,548,630		$	4,274,188

	September 30,			December 31,
	2021			2020
Lease financing receivables
Net minimum lease payments	$	337,512		$	234,472
Unguaranteed residual values		22,338			8,690
Unearned income		(25,366	)		(19,867	)
Total lease financing receivables		334,484			223,295
Initial direct costs		4,272			3,846
Lease financial receivables before allowance for    lease losses	$	338,756		$	227,141

Summary of Minimum Annual Lease Payments for Lease Financing Receivables

The minimum annual lease payments for lease financing receivables as of September 30, 2021 are summarized as follows:

	Minimum Lease Payments
2021	$	27,875
2022		110,733
2023		85,005
2024		59,682
2025		39,328
Thereafter		14,889
Total	$	337,512

Summary of Balances for Each Respective Loan and Lease Category

The following tables summarize the balances for each respective loan and lease category as of September 30, 2021 and December 31, 2020:

September 30, 2021	Originated		Acquired Impaired		Acquired Non-Impaired		Total
Commercial real estate	$	1,298,454	$	84,821	$	235,103	$	1,618,378
Residential real estate		387,578		61,893		58,283		507,754
Construction, land development, and other land		336,460		1,746		206		338,412
Commercial and industrial		1,480,076		6,651		49,678		1,536,405
Paycheck Protection Program		268,081		—		—		268,081
Installment and other		998		169		275		1,442
Lease financing receivables		331,149		—		7,607		338,756
Total loans and leases	$	4,102,796	$	155,280	$	351,152	$	4,609,228

December 31, 2020	Originated		Acquired Impaired		Acquired Non-Impaired		Total
Commercial real estate	$	1,017,587	$	108,484	$	295,599	$	1,421,670
Residential real estate		414,220		78,840		79,211		572,271
Construction, land development, and other land		226,408		4,113		212		230,733
Commercial and industrial		1,276,527		10,178		82,195		1,368,900
Paycheck Protection Program		517,815		—		—		517,815
Installment and other		1,267		202		536		2,005
Lease financing receivables		214,636		—		12,505		227,141
Total loans and leases	$	3,668,460	$	201,817	$	470,258	$	4,340,535

Summary of Outstanding Balance and Carrying Amount of All Acquired Impaired Loans

The balances do not include an allowance for loan and lease losses of $4.3 million and $6.5 million, at September 30, 2021 and December 31, 2020, respectively.

	September 30, 2021				December 31, 2020
	Unpaid Principal Balance		Carrying Value		Unpaid Principal Balance		Carrying Value
Commercial real estate	$	126,738	$	84,821	$	154,233	$	108,484
Residential real estate		108,560		61,893		126,086		78,840
Construction, land development, and other land		9,301		1,746		12,677		4,113
Commercial and industrial		12,115		6,651		15,925		10,178
Installment and other		866		169		917		202
Total acquired impaired loans	$	257,580	$	155,280	$	309,838	$	201,817

Summary of Changes in Accretable Yield for Acquired Impaired Loans

The following table summarizes the changes in accretable yield for acquired impaired loans for the three and nine months ended September 30, 2021 and 2020:

	Three Months Ended						Nine Months Ended
	September 30,						September 30,
	2021			2020			2021			2020
Beginning balance	$	24,474		$	31,868		$	27,696		$	40,009
Accretion to interest income		(3,080	)		(5,763	)		(9,896	)		(15,420	)
Reclassification from nonaccretable difference, net		1,217			5,727			4,811			7,243
Ending balance	$	22,611		$	31,832		$	22,611		$	31,832

Schedule of Unpaid Principal Balance and Carrying Value for Acquired Non-Impaired Loans and Leases

The unpaid principal balance and carrying value for acquired non-impaired loans and leases at September 30, 2021 and December 31, 2020 were as follows:

	September 30, 2021				December 31, 2020
	Unpaid Principal Balance		Carrying Value		Unpaid Principal Balance		Carrying Value
Commercial real estate	$	240,271	$	235,103	$	302,091	$	295,599
Residential real estate		58,858		58,283		80,104		79,211
Construction, land development, and other land		271		206		278		212
Commercial and industrial		51,468		49,678		84,608		82,195
Installment and other		286		275		553		536
Lease financing receivables		7,638		7,607		13,978		12,505
Total acquired non-impaired loans and leases	$	358,792	$	351,152	$	481,612	$	470,258

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Allowance for Loan and Lease Losses and Reserve for Unfunded Commitments (Tables)

9 Months Ended

Sep. 30, 2021

Receivables [Abstract]

Allowance for Loan and Lease Losses and Reserve for Unfunded Commitments

The following tables summarize the balance and activity within the allowance for loan and lease losses, the components of the allowance for loan and lease losses in terms of loans and leases individually and collectively evaluated for impairment, and corresponding loan and lease balances by type for the three and nine months ended September 30, 2021 and 2020 are as follows:

September 30, 2021	Commercial Real Estate			Residential Real Estate			Construction, Land Development, and Other Land			Commercial and Industrial			Paycheck Protection Program		Installment and Other			Lease Financing Receivables			Total
Allowance for loan and    lease losses
Three months ended
Beginning balance	$	19,541		$	1,364		$	619		$	38,284		$	—	$	9		$	1,902		$	61,719
Provision/(recapture)		1,108			(225	)		(61	)		(1,218	)		—		(2	)		750			352
Charge-offs		(564	)		(65	)		—			(1,456	)		—		—			(399	)		(2,484	)
Recoveries		287			2			—			380			—		—			342			1,011
Ending balance	$	20,372		$	1,076		$	558		$	35,990		$	—	$	7		$	2,595		$	60,598
Nine months ended
Beginning balance	$	19,584		$	2,400		$	1,352		$	41,183		$	—	$	15		$	1,813		$	66,347
Provision/(recapture)		2,891			(1,257	)		(468	)		226			—		(8	)		1,366			2,750
Charge-offs		(2,644	)		(76	)		(326	)		(6,172	)		—		—			(1,148	)		(10,366	)
Recoveries		541			9			—			753			—		—			564			1,867
Ending balance	$	20,372		$	1,076		$	558		$	35,990		$	—	$	7		$	2,595		$	60,598
Ending balance:
Individually evaluated for    impairment	$	8,420		$	—		$	—		$	16,142		$	—	$	—		$	—		$	24,562
Collectively evaluated for    impairment		9,314			723			550			18,572			—		7			2,595			31,761
Loans acquired with    deteriorated credit    quality		2,638			353			8			1,276			—		—			—			4,275
Total allowance for loan    and lease losses	$	20,372		$	1,076		$	558		$	35,990		$	—	$	7		$	2,595		$	60,598

September 30, 2021	Commercial Real Estate		Residential Real Estate		Construction, Land Development, and Other Land		Commercial and Industrial		Paycheck Protection Program		Installment and Other		Lease Financing Receivables		Total
Loans and leases ending balance:
Individually evaluated for    impairment	$	45,563	$	3,946	$	—	$	37,689	$	—	$	—	$	—	$	87,198
Collectively evaluated for    impairment		1,487,994		441,915		336,666		1,492,065		268,081		1,273		338,756		4,366,750
Loans acquired with    deteriorated    credit quality		84,821		61,893		1,746		6,651		—		169		—		155,280
Total loans and leases	$	1,618,378	$	507,754	$	338,412	$	1,536,405	$	268,081	$	1,442	$	338,756	$	4,609,228

September 30, 2020	Commercial Real Estate			Residential Real Estate			Construction, Land Development, and Other Land			Commercial and Industrial			Paycheck Protection Program		Installment and Other			Lease Financing Receivables			Total
Allowance for loan and lease losses
Three months ended
Beginning balance	$	14,110		$	3,741		$	1,491		$	30,108		$	—	$	36		$	1,814		$	51,300
Provision		6,421			291			1,029			7,603			—		1			395			15,740
Charge-offs		(1,566	)		(250	)		(701	)		(3,254	)		—		—			(374	)		(6,145	)
Recoveries		19			8			53			83			—		—			200			363
Ending balance	$	18,984		$	3,790		$	1,872		$	34,540		$	—	$	37		$	2,035		$	61,258
Nine months ended
Beginning balance	$	7,965		$	1,990		$	610		$	19,377		$	—	$	50		$	1,944		$	31,936
Provision/(recapture)		14,149			2,031			1,910			26,844			—		(13	)		792			45,713
Charge-offs		(3,206	)		(259	)		(701	)		(12,057	)		—		—			(1,392	)		(17,615	)
Recoveries		76			28			53			376			—		—			691			1,224
Ending balance	$	18,984		$	3,790		$	1,872		$	34,540		$	—	$	37		$	2,035		$	61,258
Ending balance:
Individually evaluated for    impairment	$	4,516		$	77		$	—		$	10,189		$	—	$	—		$	—		$	14,782
Collectively evaluated for    impairment		11,825			3,413			1,685			22,450			—		37			2,035			41,445
Loans acquired with    deteriorated   credit quality		2,643			300			187			1,901			—		—			—			5,031
Total allowance for loan and   lease losses	$	18,984		$	3,790		$	1,872		$	34,540		$	—	$	37		$	2,035		$	61,258

September 30, 2020	Commercial Real Estate		Residential Real Estate		Construction, Land Development, and Other Land		Commercial and Industrial		Paycheck Protection Program		Installment and Other		Lease Financing Receivables		Total
Loans and leases ending balance:
Individually evaluated for    impairment	$	39,001	$	1,636	$	—	$	37,253	$	—	$	—	$	—	$	77,890
Collectively evaluated for    impairment		1,191,740		547,563		234,230		1,281,067		622,191		2,929		200,089		4,079,809
Loans acquired with   deteriorated credit quality		117,114		84,197		4,804		10,489		—		214		—		216,818
Total loans and leases	$	1,347,855	$	633,396	$	239,034	$	1,328,809	$	622,191	$	3,143	$	200,089	$	4,374,517

Summary of Recorded Investment, Unpaid Principal Balance, and Related Allowance for Loans and Leases Considered Impaired

The following tables summarize the recorded investment, unpaid principal balance, and related allowance for loans and leases considered impaired as of September 30, 2021 and December 31, 2020, which exclude acquired impaired loans. For purposes of these tables, the unpaid principal balance represents the outstanding contractual balance. Impaired loans include loans that are individually evaluated for impairment as well as troubled debt restructurings for all loan categories. The sum of non-accrual loans and loans past due 90 days still on accrual will differ from the total impaired loan amount.

September 30, 2021	Recorded Investment		Unpaid Principal Balance		Related Allowance
With no related allowance recorded
Commercial real estate	$	20,432	$	25,512	$	—
Residential real estate		3,850		3,901		—
Commercial and industrial		14,212		15,999		—
With an allowance recorded
Commercial real estate		25,131		26,569		8,420
Residential real estate		96		152		—
Commercial and industrial		23,477		25,614		16,142
Total impaired loans	$	87,198	$	97,747	$	24,562

December 31, 2020	Recorded Investment		Unpaid Principal Balance		Related Allowance
With no related allowance recorded
Commercial real estate	$	32,473	$	34,792	$	—
Residential real estate		1,558		1,644		—
Commercial and industrial		17,944		19,917		—
With an allowance recorded
Commercial real estate		13,696		14,919		5,034
Residential real estate		272		274		78
Commercial and industrial		29,412		32,018		18,848
Total impaired loans	$	95,355	$	103,564	$	23,960

Summary of Average Recorded Investment and Interest Income Recognized for Loans and Leases Considered Impaired

The following tables summarize the average recorded investment and interest income recognized for loans and leases considered impaired, which excludes acquired impaired loans, for the nine months ended:

September 30, 2021	Average Recorded Investment		Interest Income Recognized
With no related allowance recorded
Commercial real estate	$	28,480	$	920
Residential real estate		2,788		109
Commercial and industrial		16,668		481
With an allowance recorded
Commercial real estate		27,620		1,185
Residential real estate		207		2
Commercial and industrial		28,785		1,666
Total impaired loans	$	104,548	$	4,363

September 30, 2020	Average Recorded Investment		Interest Income Recognized
With no related allowance recorded
Commercial real estate	$	22,511	$	927
Residential real estate		1,615		26
Construction, land development, and other land		2,984		220
Commercial and industrial		16,991		493
With an allowance recorded
Commercial real estate		13,329		526
Residential real estate		460		21
Commercial and industrial		21,352		1,078
Total impaired loans	$	79,242	$	3,291

Summary of Risk Rating Categories of Loans and Leases Considered for Inclusion in Allowance for Loan and Lease Losses Calculation

The following tables summarize the risk rating categories of the loans and leases considered for inclusion in the allowance for loan and lease losses calculation, excluding acquired impaired loans, as of September 30, 2021 and December 31, 2020:

September 30, 2021	Commercial Real Estate		Residential Real Estate		Construction, Land Development, and Other Land		Commercial and Industrial		Paycheck Protection Program		Installment and Other		Lease Financing Receivables		Total
Pass	$	1,297,981	$	422,843	$	291,496	$	1,261,335	$	268,081	$	1,190	$	335,475	$	3,878,401
Watch		143,047		16,862		37,795		196,288		—		83		264		394,339
Special Mention		48,605		3,036		7,375		30,841		—		—		1,934		91,791
Substandard		43,924		3,120		—		41,290		—		—		786		89,120
Doubtful		—		—		—		—		—		—		297		297
Loss		—		—		—		—		—		—		—		—
Total	$	1,533,557	$	445,861	$	336,666	$	1,529,754	$	268,081	$	1,273	$	338,756	$	4,453,948

December 31, 2020	Commercial Real Estate		Residential Real Estate		Construction, Land Development, and Other Land		Commercial and Industrial		Paycheck Protection Program		Installment and Other		Lease Financing Receivables		Total
Pass	$	1,064,623	$	463,103	$	180,458	$	1,027,399	$	517,815	$	1,706	$	222,818	$	3,477,922
Watch		134,381		22,086		46,162		225,930		—		96		47		428,702
Special Mention		60,022		3,795		—		56,784		—		—		2,721		123,322
Substandard		54,160		4,447		—		48,609		—		1		955		108,172
Doubtful		—		—		—		—		—		—		600		600
Loss		—		—		—		—		—		—		—		—
Total	$	1,313,186	$	493,431	$	226,620	$	1,358,722	$	517,815	$	1,803	$	227,141	$	4,138,718

Summary of Contractual Delinquency Information

The following tables summarize contractual delinquency information for acquired non-impaired and originated loans and leases by category at September 30, 2021 and December 31, 2020:

September 30, 2021	30-59 Days Past Due		60-89 Days Past Due		Greater than 90 Days and Accruing		Non- accrual		Total Past Due		Current		Total
Commercial real estate	$	330	$	1,426	$	—	$	17,082	$	18,838	$	1,514,719	$	1,533,557
Residential real estate		1,087		—		—		2,127		3,214		442,647		445,861
Construction, land development,    and other land		2,035		—		—		—		2,035		334,631		336,666
Commercial and industrial		1,653		594		—		14,272		16,519		1,513,235		1,529,754
Paycheck Protection Program		—		—		—		—		—		268,081		268,081
Installment and other		39		—		—		—		39		1,234		1,273
Lease financing receivables		973		98		—		984		2,055		336,701		338,756
Total	$	6,117	$	2,118	$	—	$	34,465	$	42,700	$	4,411,248	$	4,453,948

December 31, 2020	30-59 Days Past Due		60-89 Days Past Due		Greater than 90 Days and Accruing		Non- accrual		Total Past Due		Current		Total
Commercial real estate	$	1,544	$	4,194	$	—	$	15,969	$	21,707	$	1,291,479	$	1,313,186
Residential real estate		1,686		—		—		1,929		3,615		489,816		493,431
Construction, land development,    and other land		—		—		—		—		—		226,620		226,620
Commercial and industrial		4,521		1,290		—		21,936		27,747		1,330,975		1,358,722
Paycheck Protection Program												517,815		517,815
Installment and other		6		—		—		1		7		1,796		1,803
Lease financing receivables		996		376		—		1,268		2,640		224,501		227,141
Total	$	8,753	$	5,860	$	—	$	41,103	$	55,716	$	4,083,002	$	4,138,718

Summary of TDR's by Loan Category

The tables below present TDRs by loan category as of September 30, 2021 and December 31, 2020:

September 30, 2021	Number of Loans		Pre- Modification Outstanding Recorded Investment		Post- Modification Outstanding Recorded Investment		Charge-offs		Specific Reserves
Accruing:
Commercial real estate		7	$	2,130	$	2,130	$	—	$	209
Commercial and industrial		1		63		63		—		63
Residential real estate		2		173		173		—		—
Total accruing		10		2,366		2,366		—		272
Non-accruing:
Commercial real estate		3		856		740		116		311
Commercial and industrial		3		1,730		1,107		623		508
Total non-accruing		6		2,586		1,847		739		819
Total troubled debt restructurings		16	$	4,952	$	4,213	$	739	$	1,091

December 31, 2020	Number of Loans		Pre- Modification Outstanding Recorded Investment		Post- Modification Outstanding Recorded Investment		Charge-offs		Specific Reserves
Accruing:
Commercial real estate		8	$	2,187	$	2,187	$	—	$	104
Commercial and industrial		1		78		78		—		78
Residential real estate		3		230		230		—		—
Total accruing		12		2,495		2,495		—		182
Non-accruing:
Commercial real estate		4		1,609		1,362		247		102
Commercial and industrial		14		4,420		4,288		132		3,157
Total non-accruing		18		6,029		5,650		379		3,259
Total troubled debt restructurings		30	$	8,524	$	8,145	$	379	$	3,441

Summary of Loans Modified as Troubled Debt Restructurings

Loans modified as troubled debt restructurings that occurred during the three and nine months ended September 30, 2021 and 2020 were:

	Three Months Ended						Nine Months Ended
	September 30,						September 30,
	2021			2020			2021			2020
Accruing:
Beginning balance	$	2,395		$	3,151		$	2,495		$	1,771
Additions		—			604			281			604
Net payments		(29	)		(1,462	)		(410	)		(1,538	)
Net transfers from non-accrual		—			—			—			1,456
Ending balance		2,366			2,293			2,366			2,293
Non-accruing:
Beginning balance		4,441			7,449			5,650			8,800
Additions		—			—			673			5,633
Net payments		(2,584	)		(302	)		(3,568	)		(1,688	)
Charge-offs		(10	)		(852	)		(908	)		(4,994	)
Net transfers to accrual		—			—			—			(1,456	)
Ending balance		1,847			6,295			1,847			6,295
Total troubled debt restructurings	$	4,213		$	8,588		$	4,213		$	8,588

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Servicing Assets (Tables)

9 Months Ended

Sep. 30, 2021

Transfers And Servicing [Abstract]

Activity for Servicing Assets and Related Changes in Fair Value

Activity for servicing assets and the related changes in fair value for the three and nine months ended September 30, 2021 and 2020 was as follows:

	Three Months Ended September 30,					Nine Months Ended September 30,
	2021			2020		2021			2020
Beginning balance	$	24,683		$	18,351	$	22,042		$	19,471
Additions, net		1,564			1,794		5,703			4,449
Changes in fair value		(2,650	)		1,122		(4,148	)		(2,653	)
Ending balance	$	23,597		$	21,267	$	23,597		$	21,267

Unpaid Principal Balances of Loans Serviced for Others

The unpaid principal balances of these loans serviced for others as of September 30, 2021 and December 31, 2020 were as follows:

	September 30,		December 31,
	2021		2020
Loan portfolios serviced for:
SBA guaranteed loans	$	1,471,367	$	1,395,713
USDA guaranteed loans		143,847		135,543
Total	$	1,615,214	$	1,531,256

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Other Real Estate Owned (Tables)

9 Months Ended

Sep. 30, 2021

Real Estate [Abstract]

Change in Other Real Estate Owned

The following table presents the change in other real estate owned (“OREO”) for the three and nine months ended September 30, 2021 and 2020:

	Three Months Ended September 30,						Nine Months Ended September 30,
	2021			2020			2021			2020
Beginning balance	$	4,417		$	8,652		$	6,350		$	9,896
Net additions to OREO		—			41			436			127
Proceeds from sales of OREO		(1,498	)		(224	)		(2,998	)		(874	)
Gains (losses) on sales of OREO		114			(41	)		133			44
Valuation adjustments		—			(278	)		(888	)		(1,043	)
Ending balance	$	3,033		$	8,150		$	3,033		$	8,150

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Leases (Tables)

9 Months Ended

Sep. 30, 2021

Leases [Abstract]

Schedule of Operating Lease Right-of-use Asset and Liability

The following table summarizes the amount and balance sheet line item for our operating lease right-of-use asset and liability as of September 30, 2021:

	Balance Sheet Line Item	September 30, 2021
Operating lease right-of-use asset	Accrued interest receivable and other assets	$	11,580
Operating lease liability	Accrued interest payable and other liabilities		13,744

Schedule of Future Minimum Lease Payments for Operating Leases

The future minimum lease payments for operating leases, subsequent to September 30, 2021, as recorded on the balance sheet, are summarized as follows:

	Operating Lease Commitments
2021	$	1,515
2022		3,618
2023		2,412
2024		2,194
2025		1,505
Thereafter		3,108
Total undiscounted lease payments		14,352
Less: imputed interest		(608	)
Net lease liabilities	$	13,744

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Goodwill, Core Deposit Intangible and Other Intangible Assets (Tables)

9 Months Ended

Sep. 30, 2021

Goodwill And Intangible Assets Disclosure [Abstract]

Summary of Changes in Goodwill, Core Deposit Intangible Assets and Customer Relationship Intangible Assets

The following tables summarize the changes in the Company’s goodwill, core deposit intangible assets, and customer relationship intangible assets for the three and nine months ended September 30, 2021 and 2020:

	For the Three Months Ended September 30,
	2021								2020
	Goodwill		Core Deposit Intangible			Customer Relationship Intangible			Goodwill		Core Deposit Intangible			Customer Relationship Intangible
Beginning balance	$	148,353	$	18,346		$	2,335		$	148,353	$	25,459		$	2,658
Amortization		—		(1,672	)		(66	)		—		(1,825	)		(122	)
Ending balance	$	148,353	$	16,674		$	2,269		$	148,353	$	23,634		$	2,536
Accumulated amortization	N/A		$	38,792		$	947		N/A		$	31,832		$	680
Weighted average remaining    amortization period	N/A		5.0 Years			8.5 Years			N/A		5.8 Years			9.7 Years

	Nine Months Ended September 30,
	2021								2020
	Goodwill		Core Deposit Intangible			Customer Relationship Intangible			Goodwill		Core Deposit Intangible			Customer Relationship Intangible
Beginning balance	$	148,353	$	21,809		$	2,469		$	148,353	$	29,111		$	2,791
Amortization		—		(5,135	)		(200	)		—		(5,477	)		(255	)
Ending balance	$	148,353	$	16,674		$	2,269		$	148,353	$	23,634		$	2,536
Accumulated amortization	N/A		$	38,792		$	947		N/A		$	31,832		$	680
Weighted average remaining    amortization period	N/A		5.0 Years			8.5 Years			N/A		5.8 Years			9.7 Years

Estimated Amortization Expense for Core Deposit Intangible and Customer Relationship Intangible Recognized

The following table presents the estimated amortization expense for core deposit intangible and customer relationship intangible assets remaining at September 30, 2021:

	Estimated Amortization
2021	$	1,737
2022		6,386
2023		4,336
2024		2,286
2025		1,721
Thereafter		2,477
Total	$	18,943

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Deposits (Tables)

9 Months Ended

Sep. 30, 2021

Deposits [Abstract]

Composition of Deposits

The composition of deposits was as follows as of September 30, 2021 and December 31, 2020:

	September 30,		December 31,
	2021		2020
Non-interest-bearing demand deposits	$	2,117,749	$	1,762,676
Interest-bearing checking accounts		652,824		494,424
Money market demand accounts		1,057,419		1,142,709
Other savings		627,294		564,700
Time deposits (below $250,000)		553,364		600,810
Time deposits ($250,000 and above)		149,628		186,712
Total deposits	$	5,158,278	$	4,752,031

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Other Borrowings (Tables)

9 Months Ended

Sep. 30, 2021

Debt Disclosure [Abstract]

Summary of Other Borrowings

The following is a summary of the Company’s other borrowings as of September 30, 2021 and December 31, 2020:

	September 30,		December 31,
	2021		2020
Paycheck Protection Program Liquidity Facility	$	156,404	$	371,907
Federal Home Loan Bank advances		355,000		234,000
Securities sold under agreements to repurchase		27,715		41,994
Line of credit		—		—
Total	$	539,119	$	647,901

Summary of Short-term Credit Lines Available for Use

The following table presents short-term credit lines available for use as of September 30, 2021 and December 31, 2020:

	September 30,		December 31,
	2021		2020
Federal Home Loan Bank line	$	1,910,295	$	2,016,212
Federal Reserve Bank of Chicago discount window line		622,306		874,677
Available federal funds lines		115,000		115,000

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Subordinated Notes and Junior Subordinated Debentures (Tables)

9 Months Ended

Sep. 30, 2021

Debt Disclosure [Abstract]

Junior Subordinated Debentures by Issuance

At September 30, 2021 and December 31, 2020, the Company’s junior subordinated debentures by issuance were as follows:

Name of Trust	Aggregate Principal Amount September 30, 2021			Aggregate Principal Amount December 31, 2020			Stated Maturity	Contractual Rate at September 30, 2021			Interest Rate Spread
Metropolitan Statutory Trust 1	$	35,000		$	35,000		March 17, 2034		2.91	%	Three-month LIBOR + 2.79%
First Evanston Bancorp Trust I		10,000			10,000		March 15, 2035		1.90	%	Three-month LIBOR + 1.78%
Total liability, at par		45,000			45,000
Discount		(8,204	)		(8,549	)
Total liability, at carrying value	$	36,796		$	36,451

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Commitments and Contingent Liabilities (Tables)

9 Months Ended

Sep. 30, 2021

Commitments And Contingencies Disclosure [Abstract]

Summary of Contract or Notional Amount of Outstanding Loan and Lease Commitments

The following table summarizes the contract or notional amount of outstanding loan and lease commitments at September 30, 2021 and December 31, 2020:

	September 30, 2021						December 31, 2020
	Fixed Rate		Variable Rate		Total		Fixed Rate		Variable Rate		Total
Commitments to extend credit	$	173,848	$	1,520,986	$	1,694,834	$	106,183	$	1,261,872	$	1,368,055
Letters of credit		653		58,479		59,132		652		58,120		58,772
Total	$	174,501	$	1,579,465	$	1,753,966	$	106,835	$	1,319,992	$	1,426,827

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Fair Value Measurement (Tables)

9 Months Ended

Sep. 30, 2021

Fair Value Disclosures [Abstract]

Summary of Financial Assets and Liabilities Measured at Fair Value on Recurring Basis

The following tables summarize the Company’s financial assets and liabilities that were measured at fair value on a recurring basis at September 30, 2021 and December 31, 2020:

			Fair Value Measurements Using
September 30, 2021	Fair Value		Level 1		Level 2		Level 3
Financial assets
Securities available-for-sale
U.S. Treasury Notes	$	8,578	$	8,578	$	—	$	—
U.S. Government agencies		123,264		—		123,264		—
Obligations of states, municipalities, and political    subdivisions		105,060		—		105,060		—
Mortgage-backed securities; residential
Agency		785,173		—		785,173		—
Non-Agency		64,009		—		64,009		—
Mortgage-backed securities; commercial
Agency		237,409		—		237,409		—
Corporate securities		66,827		—		66,827		—
Asset-backed securities		37,285		—		37,285		—
Equity and other securities, at fair value
Mutual funds		4,424		4,424		—		—
Equity securities		5,875		—		5,189		686
Servicing assets		23,597		—		—		23,597
Derivative assets		13,463		—		13,463		—
Financial liabilities
Derivative liabilities		12,348		—		12,348		—

			Fair Value Measurements Using
December 31, 2020	Fair Value		Level 1		Level 2		Level 3
Financial assets
Securities available-for-sale
U.S. Treasury Notes	$	23,812	$	23,812	$	—	$	—
U.S. Government agencies		113,551		—		113,551		—
Obligations of states, municipalities, and political    subdivisions		142,419		—		142,419
Mortgage-backed securities; residential
Agency		778,391		—		778,391		—
Non-Agency		32,981		—		32,981		—
Mortgage-backed securities; commercial
Agency		250,152		—		250,152		—
Corporate securities		60,768		—		60,768		—
Asset-backed securities		45,156		—		45,156		—
Equity and other securities, at fair value
Mutual funds		2,983		2,983		—		—
Equity securities		5,781		—		5,096		685
Servicing assets		22,042		—		—		22,042
Derivative assets		17,149		—		17,149		—
Financial liabilities
Derivative liabilities		18,133		—		18,133		—

Summary of Financial Assets Measured at Fair Value on Recurring Basis Using Significant Unobservable Inputs

The following table presents additional information about financial assets measured at fair value on recurring basis for which the Company used significant unobservable inputs (Level 3):

	Nine Months Ended September 30,
	2021		2020			2021			2020
	Investment Securities					Servicing Assets
Balance, beginning of period	$	685	$	700		$	22,042		$	19,471
Additions, net		—		—			5,703			4,449
Change in fair value		1		(16	)		(4,148	)		(2,653	)
Balance, end of period	$	686	$	684		$	23,597		$	21,267

Summary of Unobservable Inputs Used in the Fair Value Measurements on Recurring Basis

The following table presents additional information about the unobservable inputs used in the fair value measurements on recurring basis that were categorized within Level 3 of the fair value hierarchy as of September 30, 2021:

Financial Instruments	Valuation Technique	Unobservable Inputs	Range of Inputs	Weighted Average Range			Impact to Valuation from an Increased or Higher Input Value
Single issuer trust preferred	Discounted cash flow	Discount rate	3.1% - 6.4%		4.5	%	Decrease
Servicing assets	Discounted cash flow	Prepayment speeds	0.5% - 31.8%		14.3	%	Decrease
		Discount rate	(3.0)% - 50.0%		8.1	%	Decrease
		Expected weighted average loan life	0.2 - 8.5 years	3.9 years			Increase

Summary of Assets Measured at Fair Value on Non-Recurring Basis, Excluding Acquired Impaired Loans

The following tables summarize the

Company’s assets that were measured at fair value on a non-recurring basis, excluding acquired impaired loans, as of September 30, 2021 and December 31, 2020:

			Fair Value Measurements Using
September 30, 2021	Fair Value		Level 1		Level 2		Level 3
Non-recurring
Impaired loans (excluding acquired impaired loans)
Commercial real estate	$	37,143	$	—	$	—	$	37,143
Residential real estate		3,946		—		—		3,946
Commercial and industrial		21,547		—		—		21,547
Assets held for sale		10,982		—		—		10,982
Other real estate owned		3,033		—		—		3,033

			Fair Value Measurements Using
December 31, 2020	Fair Value		Level 1		Level 2		Level 3
Non-recurring
Impaired loans (excluding acquired impaired loans)
Commercial real estate	$	41,135	$	—	$	—	$	41,135
Residential real estate		1,752		—		—		1,752
Commercial and industrial		28,508		—		—		28,508
Assets held for sale		13,023		—		—		13,023
Other real estate owned		6,350		—		—		6,350

Summary of Estimated Fair Values of Financial Instruments

The estimated fair values of financial instruments not carried at fair value and levels within the fair value hierarchy are as follows:

			September 30,				December 31,
	Fair Value		2021				2020
	Hierarchy Level		Carrying Amount		Estimated Fair Value		Carrying Amount		Estimated Fair Value
Financial assets
Cash and due from banks		1	$	46,900	$	46,900	$	41,432	$	41,432
Interest bearing deposits with other banks		2		95,978		95,978		41,988		41,988
Securities held-to-maturity		2		3,887		4,033		4,395		4,573
Other restricted stock		2		15,927		15,927		10,507		10,507
Loans held for sale		3		48,372		54,739		7,924		8,848
Loans and lease receivables, net (less impaired    loans at fair value)		3		4,485,994		4,478,323		4,202,793		4,205,906
Accrued interest receivable		3		18,857		18,857		20,678		20,678
Financial liabilities
Non-interest-bearing deposits		2		2,117,749		2,117,749		1,762,676		1,762,676
Interest-bearing deposits		2		3,040,529		3,041,101		2,989,355		2,990,735
Accrued interest payable		2		1,687		1,687		1,478		1,478
Paycheck Protection Program Liquidity Facility		2		156,404		156,404		371,907		371,907
Federal Home Loan Bank advances		2		355,000		355,000		234,000		234,000
Securities sold under repurchase agreement		2		27,715		27,715		41,994		41,994
Subordinated notes		2		73,473		83,291		73,342		76,627
Junior subordinated debentures		3		36,796		40,777		36,451		40,543

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Derivative Instruments and Hedge Activities (Tables)

9 Months Ended

Sep. 30, 2021

Derivative Instruments And Hedging Activities Disclosure [Abstract]

Summary of Derivative Financial Instruments and Classification on Consolidated Statements of Financial Condition

The following tables present the fair value of the Company’s derivative financial instruments and classification on the Consolidated Statements of Financial Condition as of September 30, 2021 and December 31, 2020:

	September 30, 2021							December 31, 2020
			Fair Value							Fair Value
	Notional Amount		Other Assets		Other Liabilities			Notional Amount		Other Assets		Other Liabilities
Derivatives designated as hedging instruments
Interest rate swaps designated as cash flow    hedges		400,000	$	1,799	$	(192	)	$	—	$	—	$	—
Derivatives not designated as hedging   instruments
Other interest rate derivatives		458,698		11,664		(12,148	)		383,410		17,149		(18,116	)
Other credit derivatives		7,788		—		(8	)		8,437		—		(17	)
Total derivatives	$	866,486	$	13,463	$	(12,348	)	$	391,847	$	17,149	$	(18,133	)

Summary of Cash Flow Hedges

The following table reflects the cash flow hedges as of September 30, 2021:

Notional amounts	$	400,000
Derivative assets fair value		1,799
Derivative liabilities fair value		192
Weighted average maturity	5.2 years

The weighted average pay rates of the forward swaps are 0.98% and weighted average receive rates will be determined at the time the forward swaps become effective.

Summary of Net Gains (Losses) Recorded in Accumulated Other Comprehensive Income (Loss) and Consolidated Statements of Operations Relating to Cash Flow Derivative Instruments

The following table reflects the net gains (losses) recorded in accumulated other comprehensive income (loss) and the Consolidated Statements of Operations relating to the cash flow derivative instruments for the nine months ended:

	September 30, 2021							September 30, 2020
	Amount of Loss Recognized in OCI		Amount of Loss Reclassified from OCI to Income as an Increase to Interest Expense			Amount of Gain (Loss) Recognized in Other Non-Interest Income		Amount of Loss Recognized in OCI		Amount of Loss Reclassified from OCI to Income as an Increase to Interest Expense			Amount of Gain (Loss) Recognized in Other Non-Interest Income
Interest rate swaps	$	1,606	$	(71	)	$	—	$	—	$	(64	)	$	—

Summary of Other Interest Rate Derivatives

The following table reflects other interest rate derivatives as of September 30, 2021:

Notional amounts	$	458,698
Derivative assets fair value		11,664
Derivative liabilities fair value		12,148
Weighted average pay rates		4.23	%
Weighted average receive rates		3.03	%
Weighted average maturity	5.6 years

Summary of Amounts Included in Non-Interest Income in Consolidated Statements of Operations Relating to Derivative Instruments not Designated in Hedging Relationship

The following table reflects amounts included in non-interest income in the Consolidated Statements of Operations relating to derivative instruments that are not designated in a hedging relationship for the nine months ended September 30, 2021 and 2020:

	Three Months Ended				Nine Months Ended
	September 30,				September 30,
	2021		2020		2021		2020
Other interest rate derivatives	$	98	$	113	$	482	$	(627	)
Other credit derivatives		2		3		9		(8	)
Total	$	100	$	116	$	491	$	(635	)

Summary of Company's Interest Rate Derivative and Offsetting Positions

The table below summarizes the Company’s interest rate derivatives and offsetting positions as of:

	September 30, 2021						December 31, 2020
	Derivative Assets Fair Value			Derivative Liabilities Fair Value			Derivative Assets Fair Value			Derivative Liabilities Fair Value
Gross amounts recognized	$	13,463		$	(12,348	)	$	17,149		$	(18,133	)
Less: Amounts offset in the Consolidated Statements of    Financial Condition		—			—			—			—
Net amount presented in the Consolidated Statements of    Financial Condition	$	13,463		$	(12,348	)	$	17,149		$	(18,133	)
Gross amounts not offset in the Consolidated Statements of    Financial Condition
Offsetting derivative positions		(1,814	)		1,814			—			—
Collateral posted		(11,649	)		9,740			(17,149	)		18,133
Net credit exposure	$	—		$	(794	)	$	—		$	—

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Share-Based Compensation (Tables)

9 Months Ended

Sep. 30, 2021

Share Based Compensation Arrangement By Share Based Payment Award [Line Items]

Summary of Stock Compensation Expense

The following table summarizes stock option compensation expense for the nine months ended September 30, 2021 and 2020:

	Nine Months Ended September 30,
	2021		2020
Total share-based compensation - stock options	$	—	$	7
Income tax benefit		—		2
Unrecognized compensation expense - stock options		—		—
Weighted-average amortization period remaining	0.0 years		0.0 years

Restricted Shares

Share Based Compensation Arrangement By Share Based Payment Award [Line Items]

Summary of Stock Compensation Expense

The following table summarizes restricted stock compensation expense for the nine months ended September 30, 2021 and 2020:

	Nine Months Ended September 30,
	2021		2020
Total share-based compensation - restricted stock	$	2,966	$	2,019
Income tax benefit		826		562
Unrecognized compensation expense		7,840		5,566
Weighted-average amortization period remaining	2.4 years		2.4 years

Omnibus Plan

Share Based Compensation Arrangement By Share Based Payment Award [Line Items]

Summary of Changes in Restricted Shares

The following table discloses the changes in restricted shares for the nine months ended September 30, 2021:

	Omnibus Plan
	Number of Shares			Weighted Average Grant Date Fair Value
Beginning balance, January 1, 2021		383,539		$	18.75
Granted		308,452			19.38
Vested		(103,187	)		19.52
Forfeited		(9,740	)		20.58
Ending balance outstanding at September 30, 2021		579,064		$	18.92

BYB Plan

Share Based Compensation Arrangement By Share Based Payment Award [Line Items]

Summary of Activity in shares Subjected to Options and Weighted Average Exercise Prices

The following table discloses the activity in shares subject to options and the weighted average exercise prices, in actual dollars, for the nine months ended September 30, 2021:

	BYB Plan
	Number of Shares			Weighted Average Exercise Price		Intrinsic Value		Weighted Average Remaining Contractual Term (in Years)
Beginning balance, January 1, 2021		1,390,579		$	11.36	$	5,724		4.4
Exercised		(46,031	)		13.66	$	359
Expired		—
Ending balance outstanding at September 30, 2021		1,344,548		$	11.28	$	17,851		3.7
Exercisable at September 30, 2021		1,344,548		$	11.28	$	17,851		3.7

FEB Plan

Share Based Compensation Arrangement By Share Based Payment Award [Line Items]

Summary of Activity in shares Subjected to Options and Weighted Average Exercise Prices

The following table discloses the activity in shares subject to options under the FEB Plan and the weighted average exercise prices, in actual dollars, for the nine months ended September 30, 2021:

	FEB Plan
	Number of Shares			Weighted Average Exercise Price		Intrinsic Value		Weighted Average Remaining Contractual Term (in Years)
Beginning balance, January 1, 2021		233,630		$	11.52	$	918		3.3
Exercised		(46,774	)	$	11.55	$	313
Expired		—
Ending balance outstanding at September 30, 2021		186,856		$	11.52	$	2,437		3.3
Exercisable at September 30, 2021		186,856		$	11.52	$	2,437		3.3

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Earnings per Share (Tables)

9 Months Ended

Sep. 30, 2021

Earnings Per Share [Abstract]

Schedule of Calculation of Basic and Diluted Earnings per Share

The following represent the calculation of basic and diluted earnings per share for the periods presented:

	Three Months Ended September 30,				Nine Months Ended September 30,
	2021		2020		2021		2020
Net income	$	25,306	$	13,071	$	75,596	$	25,176
Less: Dividends on preferred shares		196		196		587		587
Net income available to common stockholders	$	25,110	$	12,875	$	75,009	$	24,589
Weighted-average common stock outstanding:
Weighted-average common stock outstanding (basic)		37,200,778		38,057,350		37,773,350		37,973,694
Incremental shares		817,523		191,985		749,762		278,269
Weighted-average common stock outstanding (dilutive)		38,018,301		38,249,335		38,523,112		38,251,963
Basic earnings per common share	$	0.68	$	0.34	$	1.99	$	0.65
Diluted earnings per common share	$	0.66	$	0.34	$	1.95	$	0.64

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Stockholders' Equity (Tables)

9 Months Ended

Sep. 30, 2021

Equity [Abstract]

Summary of Preferred and Common Stock

A summary of the Company’s preferred and common stock at September 30, 2021 and December 31, 2020 is as follows:

	September 30,		December 31,
	2021		2020
Series B 7.5% fixed to floating non-cumulative    perpetual preferred stock
Par value	$	0.01	$	0.01
Shares authorized		50,000		50,000
Shares issued		10,438		10,438
Shares outstanding		10,438		10,438
Common stock, voting
Par value	$	0.01	$	0.01
Shares authorized		150,000,000		150,000,000
Shares issued		39,170,541		38,736,540
Shares outstanding		37,690,087		38,618,054
Treasury shares		1,480,454		118,486

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Consolidated Statements of Changes in Accumulated Other Comprehensive Income (Loss) (Tables)

9 Months Ended

Sep. 30, 2021

Accumulated Other Comprehensive Income Loss Net Of Tax [Abstract]

Schedule of Consolidated Statements of Changes in Accumulated Other Comprehensive Income (Loss)

The following table summarizes the changes in accumulated other comprehensive income (loss) for the nine months ended September 30, 2021 and 2020:

(dollars in thousands)	Unrealized Gains (Losses) on Cash Flow Hedges			Unrealized Gains (Losses) on Available-for -Sale Securities			Total Accumulated Other Comprehensive Income (Loss)
Balance, January 1, 2020	$	(366	)	$	(334	)	$	(700	)
Other comprehensive income, net of tax		46			19,978			20,024
Balance, September 30, 2020	$	(320	)	$	19,644		$	19,324
Balance, January 1, 2021	$	(305	)	$	18,352		$	18,047
Other comprehensive income (loss), net of tax		1,211			(24,772	)		(23,561	)
Balance, September 30, 2021	$	906		$	(6,420	)	$	(5,514	)

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Basis of Presentation - Additional Information (Details)	9 Months Ended
	Sep. 30, 2021 Segment
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items]
Number of reportable segments	1

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Accounting Pronouncements Recently Adopted or Issued - Additional Information (Details) - USD ($) $ in Thousands	Sep. 30, 2021	Jan. 01, 2021
New Accounting Pronouncements Or Change In Accounting Principle [Line Items]
Operating lease liabilities	$ 13,744
ASU No. 2016-02
New Accounting Pronouncements Or Change In Accounting Principle [Line Items]
Operating right-of-use assets		$ 10,500
Operating lease liabilities		$ 11,700

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Securities - Summary of Amortized Cost and Fair Values of Securities Available-for-sale (Details) - USD ($) $ in Thousands	Sep. 30, 2021	Dec. 31, 2020
Schedule Of Available For Sale Securities [Line Items]
Available-for-sale Securities, Amortized Cost	$ 1,433,152	$ 1,418,445
Available-for-sale Securities, Gross Unrealized Gains	13,354	29,834
Available-for-sale Securities, Gross Unrealized Losses	(18,901)	(1,049)
Available-for-sale Securities, Fair Value	1,427,605	1,447,230
U.S. Treasury Notes
Schedule Of Available For Sale Securities [Line Items]
Available-for-sale Securities, Amortized Cost	8,487	23,468
Available-for-sale Securities, Gross Unrealized Gains	91	344
Available-for-sale Securities, Gross Unrealized Losses	0	0
Available-for-sale Securities, Fair Value	8,578	23,812
U.S. Government Agencies
Schedule Of Available For Sale Securities [Line Items]
Available-for-sale Securities, Amortized Cost	124,244	113,088
Available-for-sale Securities, Gross Unrealized Gains	885	600
Available-for-sale Securities, Gross Unrealized Losses	(1,865)	(137)
Available-for-sale Securities, Fair Value	123,264	113,551
Obligations of States, Municipalities, and Political Subdivisions
Schedule Of Available For Sale Securities [Line Items]
Available-for-sale Securities, Amortized Cost	101,499	135,513
Available-for-sale Securities, Gross Unrealized Gains	3,725	6,991
Available-for-sale Securities, Gross Unrealized Losses	(164)	(85)
Available-for-sale Securities, Fair Value	105,060	142,419
Agency, Residential Mortgage-Backed Securities
Schedule Of Available For Sale Securities [Line Items]
Available-for-sale Securities, Amortized Cost	794,856	764,951
Available-for-sale Securities, Gross Unrealized Gains	3,303	13,645
Available-for-sale Securities, Gross Unrealized Losses	(12,986)	(205)
Available-for-sale Securities, Fair Value	785,173	778,391
Non-Agency, Residential Mortgage-Backed Securities
Schedule Of Available For Sale Securities [Line Items]
Available-for-sale Securities, Amortized Cost	64,645	32,654
Available-for-sale Securities, Gross Unrealized Gains	86	332
Available-for-sale Securities, Gross Unrealized Losses	(722)	(5)
Available-for-sale Securities, Fair Value	64,009	32,981
Agency, Commercial Mortgage-Backed Securities
Schedule Of Available For Sale Securities [Line Items]
Available-for-sale Securities, Amortized Cost	237,376	244,496
Available-for-sale Securities, Gross Unrealized Gains	3,179	6,046
Available-for-sale Securities, Gross Unrealized Losses	(3,146)	(390)
Available-for-sale Securities, Fair Value	237,409	250,152
Corporate Securities
Schedule Of Available For Sale Securities [Line Items]
Available-for-sale Securities, Amortized Cost	64,842	59,020
Available-for-sale Securities, Gross Unrealized Gains	2,002	1,850
Available-for-sale Securities, Gross Unrealized Losses	(17)	(102)
Available-for-sale Securities, Fair Value	66,827	60,768
Asset-Backed Securities
Schedule Of Available For Sale Securities [Line Items]
Available-for-sale Securities, Amortized Cost	37,203	45,255
Available-for-sale Securities, Gross Unrealized Gains	83	26
Available-for-sale Securities, Gross Unrealized Losses	(1)	(125)
Available-for-sale Securities, Fair Value	$ 37,285	$ 45,156

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Securities - Summary of Amortized Cost and Fair Values of Securities Held-to-maturity (Details) - USD ($) $ in Thousands	Sep. 30, 2021	Dec. 31, 2020
Schedule Of Held To Maturity Securities [Line Items]
Held-to-maturity Securities, Amortized Cost	$ 3,887	$ 4,395
Held-to-maturity Securities, Gross Unrealized Gains	146	178
Held-to-maturity Securities, Gross Unrealized Losses	0	0
Held-to-maturity Securities, Fair Value	4,033	4,573
Obligations of States, Municipalities, and Political Subdivisions
Schedule Of Held To Maturity Securities [Line Items]
Held-to-maturity Securities, Amortized Cost	3,887	4,395
Held-to-maturity Securities, Gross Unrealized Gains	146	178
Held-to-maturity Securities, Gross Unrealized Losses	0	0
Held-to-maturity Securities, Fair Value	$ 4,033	$ 4,573

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Securities - Additional Information (Details)	3 Months Ended		9 Months Ended
	Sep. 30, 2021 USD ($) Security	Sep. 30, 2020 USD ($)	Sep. 30, 2021 USD ($) Security	Sep. 30, 2020 USD ($)	Dec. 31, 2020 USD ($)
Schedule Of Investments [Line Items]
Trading securities	$ 0		$ 0
Net gains reclassified from accumulated other comprehensive income earnings	130,000	$ 1,000,000.0	1,500,000	$ 2,400,000
Investment securities posted as collateral	361,000,000.0		361,000,000.0		$ 731,800,000
Carrying amount of securities pledged as collateral	$ 361,000,000.0		$ 361,000,000.0		$ 323,900,000
Minimum
Schedule Of Investments [Line Items]
Percentage of shareholders equity for which securities holdings exceeds for no issuer other than U.S. Government and agencies	10.00%		10.00%		10.00%
Federal Home Loan Bank Advances
Schedule Of Investments [Line Items]
Carrying amount of securities pledged as collateral	$ 0		$ 0		$ 0
Public Fund Deposits
Schedule Of Investments [Line Items]
Carrying amount of securities pledged as collateral	311,300,000		311,300,000		245,100,000
Customer Repurchase Agreements
Schedule Of Investments [Line Items]
Carrying amount of securities pledged as collateral	$ 38,700,000		$ 38,700,000		$ 64,100,000
Available-for-sale Securities
Schedule Of Investments [Line Items]
Investment securities with unrealized losses | Security	97		97
Held-to-maturity Securities
Schedule Of Investments [Line Items]
Investment securities with unrealized losses | Security	0		0

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Securities - Summary of Gross Unrealized Losses and Fair Values, Aggregated by Investment Category and Length of Individual Securities Continuous Unrealized Loss Position Available-for-sale (Details) $ in Thousands	Sep. 30, 2021 USD ($) Security	Dec. 31, 2020 USD ($) Security
Schedule Of Available For Sale Securities [Line Items]
Available-for-sale Securities, Continuous Unrealized Loss Position, Number of Securities | Security	97	37
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than 12 Months, Fair Value	$ 822,458	$ 170,971
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than 12 Months, Unrealized Losses	(17,405)	(1,016)
Available-for-sale Securities, Continuous Unrealized Loss Position, 12 Months or Longer, Fair Value	48,269	5,424
Available-for-sale Securities, Continuous Unrealized Loss Position, 12 Months or Longer, Unrealized Losses	(1,496)	(33)
Available-for-sale Securities, Continuous Unrealized Loss Position, Total Fair Value	870,727	176,395
Available-for-sale Securities, Continuous Unrealized Loss Position, Total Unrealized Losses	$ (18,901)	$ (1,049)
U.S. Government Agencies
Schedule Of Available For Sale Securities [Line Items]
Available-for-sale Securities, Continuous Unrealized Loss Position, Number of Securities | Security	10	5
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than 12 Months, Fair Value	$ 74,687	$ 30,639
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than 12 Months, Unrealized Losses	(1,506)	(137)
Available-for-sale Securities, Continuous Unrealized Loss Position, 12 Months or Longer, Fair Value	9,641	0
Available-for-sale Securities, Continuous Unrealized Loss Position, 12 Months or Longer, Unrealized Losses	(359)	0
Available-for-sale Securities, Continuous Unrealized Loss Position, Total Fair Value	84,328	30,639
Available-for-sale Securities, Continuous Unrealized Loss Position, Total Unrealized Losses	$ (1,865)	$ (137)
Obligations of States, Municipalities, and Political Subdivisions
Schedule Of Available For Sale Securities [Line Items]
Available-for-sale Securities, Continuous Unrealized Loss Position, Number of Securities | Security	7	2
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than 12 Months, Fair Value	$ 8,097	$ 210
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than 12 Months, Unrealized Losses	(164)	(85)
Available-for-sale Securities, Continuous Unrealized Loss Position, 12 Months or Longer, Fair Value	0	0
Available-for-sale Securities, Continuous Unrealized Loss Position, 12 Months or Longer, Unrealized Losses	0	0
Available-for-sale Securities, Continuous Unrealized Loss Position, Total Fair Value	8,097	210
Available-for-sale Securities, Continuous Unrealized Loss Position, Total Unrealized Losses	$ (164)	$ (85)
Agency, Residential Mortgage-Backed Securities
Schedule Of Available For Sale Securities [Line Items]
Available-for-sale Securities, Continuous Unrealized Loss Position, Number of Securities | Security	51	8
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than 12 Months, Fair Value	$ 620,325	$ 45,253
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than 12 Months, Unrealized Losses	(12,626)	(198)
Available-for-sale Securities, Continuous Unrealized Loss Position, 12 Months or Longer, Fair Value	11,805	472
Available-for-sale Securities, Continuous Unrealized Loss Position, 12 Months or Longer, Unrealized Losses	(360)	(7)
Available-for-sale Securities, Continuous Unrealized Loss Position, Total Fair Value	632,130	45,725
Available-for-sale Securities, Continuous Unrealized Loss Position, Total Unrealized Losses	$ (12,986)	$ (205)
Non-Agency, Residential Mortgage-Backed Securities
Schedule Of Available For Sale Securities [Line Items]
Available-for-sale Securities, Continuous Unrealized Loss Position, Number of Securities | Security	5	2
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than 12 Months, Fair Value	$ 34,310	$ 3,963
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than 12 Months, Unrealized Losses	(722)	(5)
Available-for-sale Securities, Continuous Unrealized Loss Position, 12 Months or Longer, Fair Value	0	0
Available-for-sale Securities, Continuous Unrealized Loss Position, 12 Months or Longer, Unrealized Losses	0	0
Available-for-sale Securities, Continuous Unrealized Loss Position, Total Fair Value	34,310	3,963
Available-for-sale Securities, Continuous Unrealized Loss Position, Total Unrealized Losses	$ (722)	$ (5)
Agency, Commercial Mortgage-Backed Securities
Schedule Of Available For Sale Securities [Line Items]
Available-for-sale Securities, Continuous Unrealized Loss Position, Number of Securities | Security	21	8
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than 12 Months, Fair Value	$ 75,001	$ 55,554
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than 12 Months, Unrealized Losses	(2,369)	(390)
Available-for-sale Securities, Continuous Unrealized Loss Position, 12 Months or Longer, Fair Value	26,823	0
Available-for-sale Securities, Continuous Unrealized Loss Position, 12 Months or Longer, Unrealized Losses	(777)	0
Available-for-sale Securities, Continuous Unrealized Loss Position, Total Fair Value	101,824	55,554
Available-for-sale Securities, Continuous Unrealized Loss Position, Total Unrealized Losses	$ (3,146)	$ (390)
Corporate Securities
Schedule Of Available For Sale Securities [Line Items]
Available-for-sale Securities, Continuous Unrealized Loss Position, Number of Securities | Security	2	6
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than 12 Months, Fair Value	$ 5,041	$ 10,916
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than 12 Months, Unrealized Losses	(17)	(102)
Available-for-sale Securities, Continuous Unrealized Loss Position, 12 Months or Longer, Fair Value	0	0
Available-for-sale Securities, Continuous Unrealized Loss Position, 12 Months or Longer, Unrealized Losses	0	0
Available-for-sale Securities, Continuous Unrealized Loss Position, Total Fair Value	5,041	10,916
Available-for-sale Securities, Continuous Unrealized Loss Position, Total Unrealized Losses	$ (17)	$ (102)
Asset-Backed Securities
Schedule Of Available For Sale Securities [Line Items]
Available-for-sale Securities, Continuous Unrealized Loss Position, Number of Securities | Security	1	6
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than 12 Months, Fair Value	$ 4,997	$ 24,436
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than 12 Months, Unrealized Losses	(1)	(99)
Available-for-sale Securities, Continuous Unrealized Loss Position, 12 Months or Longer, Fair Value	0	4,952
Available-for-sale Securities, Continuous Unrealized Loss Position, 12 Months or Longer, Unrealized Losses	0	(26)
Available-for-sale Securities, Continuous Unrealized Loss Position, Total Fair Value	4,997	29,388
Available-for-sale Securities, Continuous Unrealized Loss Position, Total Unrealized Losses	$ (1)	$ (125)

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Securities - Summary of Proceeds From Sales of Securities Available-for-sale and Associated Gains and Losses (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2021	Sep. 30, 2020	Sep. 30, 2021	Sep. 30, 2020
Available For Sale Securities Gross Realized Gain Loss [Abstract]
Proceeds	$ 0	$ 35,092	$ 186,850	$ 80,509
Gross gains	130	1,037	2,525	2,494
Gross losses	$ 0	$ 0	$ 1,069	$ 82

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Securities - Schedule of Amortized Cost and Fair Value of Debt Securities by Contractual Maturity (Details) - USD ($) $ in Thousands	Sep. 30, 2021	Dec. 31, 2020
Available-for-sale Securities Debt Maturities, Amortized Cost [Abstract]
Available-for-sale Securities, Due in one year or less, Amortized Cost	$ 23,201
Available-for-sale Securities, Due from one to five years, Amortized Cost	26,476
Available-for-sale Securities, Due from five to ten years, Amortized Cost	209,435
Available-for-sale Securities, Due after ten years, Amortized Cost	77,163
Available-for-sale Securities, Amortized Cost	1,433,152	$ 1,418,445
Held-to-maturity Securities Debt Maturities, Amortized Cost [Abstract]
Held-to-maturity Securities, Due from one to five years, Amortized Cost	3,887
Held-to-maturity Securities, Amortized Cost	3,887	4,395
Available-for-sale Securities Debt Maturities, Fair Value [Abstract]
Available-for-sale Securities, Due in one year or less, Fair Value	23,402
Available-for-sale Securities, Due from one to five years, Fair Value	27,466
Available-for-sale Securities, Due from five to ten years, Fair Value	211,691
Available-for-sale Securities, Due after ten years, Fair Value	78,455
Available-for-sale Securities, Fair Value, Total	1,427,605	1,447,230
Held-to-maturity Securities Debt Maturities, Fair Value [Abstract]
Held-to-maturity Securities, Due from one to five years, Fair Value	4,033
Held-to-maturity securities, Fair Value, Total	4,033	$ 4,573
Mortgage-Backed Securities
Available-for-sale Securities Debt Maturities, Amortized Cost [Abstract]
Available-for-sale Securities, Not due at single maturity, Amortized Cost	1,096,877
Available-for-sale Securities Debt Maturities, Fair Value [Abstract]
Available-for-sale Securities, Not due at single maturity, Fair Value	$ 1,086,591

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Loan and Lease Receivables - Schedule of Outstanding Loan and Lease Receivables (Details) - USD ($) $ in Thousands	Sep. 30, 2021	Jun. 30, 2021	Dec. 31, 2020	Sep. 30, 2020	Jun. 30, 2020	Dec. 31, 2019
Accounts Notes And Loans Receivable [Line Items]
Total loans and leases	$ 4,610,440		$ 4,342,453
Net unamortized deferred fees and costs	(5,484)		(5,764)
Initial direct costs	4,272		3,846
Allowance for loan and lease losses	(60,598)	$ (61,719)	(66,347)	$ (61,258)	$ (51,300)	$ (31,936)
Net loans and leases	4,548,630		4,274,188
Net minimum lease payments	337,512		234,472
Unguaranteed residual values	22,338		8,690
Unearned income	(25,366)		(19,867)
Total lease financing receivables	334,484		223,295
Initial direct costs	4,272		3,846
Lease financial receivables before allowance for lease losses	338,756		227,141
Commercial Real Estate
Accounts Notes And Loans Receivable [Line Items]
Total loans and leases	1,615,875		1,416,731
Allowance for loan and lease losses	(20,372)	(19,541)	(19,584)	(18,984)	(14,110)	(7,965)
Residential Real Estate
Accounts Notes And Loans Receivable [Line Items]
Total loans and leases	507,226		569,387
Allowance for loan and lease losses	(1,076)	(1,364)	(2,400)	(3,790)	(3,741)	(1,990)
Construction, Land Development, and Other Land
Accounts Notes And Loans Receivable [Line Items]
Total loans and leases	340,428		231,602
Allowance for loan and lease losses	(558)	(619)	(1,352)	(1,872)	(1,491)	(610)
Commercial and Industrial
Accounts Notes And Loans Receivable [Line Items]
Total loans and leases	1,535,412		1,372,452
Allowance for loan and lease losses	(35,990)	(38,284)	(41,183)	(34,540)	(30,108)	(19,377)
Paycheck Protection Program
Accounts Notes And Loans Receivable [Line Items]
Total loans and leases	275,619		527,044
Allowance for loan and lease losses	0	0	0	0	0	0
Installment and Other
Accounts Notes And Loans Receivable [Line Items]
Total loans and leases	1,396		1,942
Allowance for loan and lease losses	(7)	(9)	(15)	(37)	(36)	(50)
Lease Financing Receivables
Accounts Notes And Loans Receivable [Line Items]
Total loans and leases	334,484		223,295
Allowance for loan and lease losses	$ (2,595)	$ (1,902)	$ (1,813)	$ (2,035)	$ (1,814)	$ (1,944)

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Loan and Lease Receivables - Additional Information (Details) - USD ($) $ in Thousands	Sep. 30, 2021	Jun. 30, 2021	Dec. 31, 2020	Sep. 30, 2020	Jun. 30, 2020	Dec. 31, 2019
Accounts Notes And Loans Receivable [Line Items]
Total loans and leases	$ 4,610,440		$ 4,342,453
Loans held for sale pledged as security for borrowings	2,000,000		2,300,000
Allowance for loan and lease losses	60,598	$ 61,719	66,347	$ 61,258	$ 51,300	$ 31,936
Acquired Impaired Loans
Accounts Notes And Loans Receivable [Line Items]
Allowance for loan and lease losses			6,500
Installment and Other
Accounts Notes And Loans Receivable [Line Items]
Total loans and leases	1,396		1,942
Overdraft deposits reclassified as loans	477,000		496,000,000
Allowance for loan and lease losses	7	$ 9	15	$ 37	$ 36	$ 50
U.S. Government Guaranteed Loans
Accounts Notes And Loans Receivable [Line Items]
Total loans and leases	396,600		635,000
Discount on the unguaranteed portion of government guaranteed loans	$ 27,900		$ 28,300

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Loan and Lease Receivables - Summary of Minimum Annual Lease Payments for Lease Financing Receivables (Details) $ in Thousands	Sep. 30, 2021 USD ($)
Receivables [Abstract]
2021	$ 27,875
2022	110,733
2023	85,005
2024	59,682
2025	39,328
Thereafter	14,889
Total	$ 337,512

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Loan and Lease Receivables - Summary of Balances for Each Respective Loan and Lease Category (Details) - USD ($) $ in Thousands	Sep. 30, 2021	Dec. 31, 2020	Sep. 30, 2020
Accounts Notes And Loans Receivable [Line Items]
Total loans and leases	$ 4,609,228	$ 4,340,535	$ 4,374,517
Originated
Accounts Notes And Loans Receivable [Line Items]
Total loans and leases	4,102,796	3,668,460
Acquired Impaired
Accounts Notes And Loans Receivable [Line Items]
Total loans and leases	155,280	201,817
Acquired Non-Impaired
Accounts Notes And Loans Receivable [Line Items]
Total loans and leases	351,152	470,258
Commercial Real Estate
Accounts Notes And Loans Receivable [Line Items]
Total loans and leases	1,618,378	1,421,670	1,347,855
Commercial Real Estate | Originated
Accounts Notes And Loans Receivable [Line Items]
Total loans and leases	1,298,454	1,017,587
Commercial Real Estate | Acquired Impaired
Accounts Notes And Loans Receivable [Line Items]
Total loans and leases	84,821	108,484
Commercial Real Estate | Acquired Non-Impaired
Accounts Notes And Loans Receivable [Line Items]
Total loans and leases	235,103	295,599
Residential Real Estate
Accounts Notes And Loans Receivable [Line Items]
Total loans and leases	507,754	572,271	633,396
Residential Real Estate | Originated
Accounts Notes And Loans Receivable [Line Items]
Total loans and leases	387,578	414,220
Residential Real Estate | Acquired Impaired
Accounts Notes And Loans Receivable [Line Items]
Total loans and leases	61,893	78,840
Residential Real Estate | Acquired Non-Impaired
Accounts Notes And Loans Receivable [Line Items]
Total loans and leases	58,283	79,211
Construction, Land Development, and Other Land
Accounts Notes And Loans Receivable [Line Items]
Total loans and leases	338,412	230,733	239,034
Construction, Land Development, and Other Land | Originated
Accounts Notes And Loans Receivable [Line Items]
Total loans and leases	336,460	226,408
Construction, Land Development, and Other Land | Acquired Impaired
Accounts Notes And Loans Receivable [Line Items]
Total loans and leases	1,746	4,113
Construction, Land Development, and Other Land | Acquired Non-Impaired
Accounts Notes And Loans Receivable [Line Items]
Total loans and leases	206	212
Commercial and Industrial
Accounts Notes And Loans Receivable [Line Items]
Total loans and leases	1,536,405	1,368,900	1,328,809
Commercial and Industrial | Originated
Accounts Notes And Loans Receivable [Line Items]
Total loans and leases	1,480,076	1,276,527
Commercial and Industrial | Acquired Impaired
Accounts Notes And Loans Receivable [Line Items]
Total loans and leases	6,651	10,178
Commercial and Industrial | Acquired Non-Impaired
Accounts Notes And Loans Receivable [Line Items]
Total loans and leases	49,678	82,195
Paycheck Protection Program
Accounts Notes And Loans Receivable [Line Items]
Total loans and leases	268,081	517,815	622,191
Paycheck Protection Program | Originated
Accounts Notes And Loans Receivable [Line Items]
Total loans and leases	268,081	517,815
Paycheck Protection Program | Acquired Impaired
Accounts Notes And Loans Receivable [Line Items]
Total loans and leases	0	0
Paycheck Protection Program | Acquired Non-Impaired
Accounts Notes And Loans Receivable [Line Items]
Total loans and leases	0	0
Installment and Other
Accounts Notes And Loans Receivable [Line Items]
Total loans and leases	1,442	2,005	3,143
Installment and Other | Originated
Accounts Notes And Loans Receivable [Line Items]
Total loans and leases	998	1,267
Installment and Other | Acquired Impaired
Accounts Notes And Loans Receivable [Line Items]
Total loans and leases	169	202
Installment and Other | Acquired Non-Impaired
Accounts Notes And Loans Receivable [Line Items]
Total loans and leases	275	536
Lease Financing Receivables
Accounts Notes And Loans Receivable [Line Items]
Total loans and leases	338,756	227,141	$ 200,089
Lease Financing Receivables | Originated
Accounts Notes And Loans Receivable [Line Items]
Total loans and leases	331,149	214,636
Lease Financing Receivables | Acquired Impaired
Accounts Notes And Loans Receivable [Line Items]
Total loans and leases	0	0
Lease Financing Receivables | Acquired Non-Impaired
Accounts Notes And Loans Receivable [Line Items]
Total loans and leases	$ 7,607	$ 12,505

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Loan and Lease Receivables - Summary of Outstanding Balance and Carrying Amount of All Acquired Impaired Loans (Details) - USD ($) $ in Thousands	Sep. 30, 2021	Dec. 31, 2020
Acquired Impaired Loans
Accounts Notes And Loans Receivable [Line Items]
Unpaid Principal Balance	$ 257,580	$ 309,838
Carrying Value	155,280	201,817
Commercial Real Estate
Accounts Notes And Loans Receivable [Line Items]
Unpaid Principal Balance	126,738	154,233
Carrying Value	84,821	108,484
Residential Real Estate
Accounts Notes And Loans Receivable [Line Items]
Unpaid Principal Balance	108,560	126,086
Carrying Value	61,893	78,840
Construction, Land Development, and Other Land
Accounts Notes And Loans Receivable [Line Items]
Unpaid Principal Balance	9,301	12,677
Carrying Value	1,746	4,113
Commercial and Industrial
Accounts Notes And Loans Receivable [Line Items]
Unpaid Principal Balance	12,115	15,925
Carrying Value	6,651	10,178
Installment and Other
Accounts Notes And Loans Receivable [Line Items]
Unpaid Principal Balance	866	917
Carrying Value	$ 169	$ 202

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Loan and Lease Receivables - Summary of Changes in Accretable Yield for Acquired Impaired Loans (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2021	Sep. 30, 2020	Sep. 30, 2021	Sep. 30, 2020
Receivables [Abstract]
Beginning balance	$ 24,474	$ 31,868	$ 27,696	$ 40,009
Accretion to interest income	(3,080)	(5,763)	(9,896)	(15,420)
Reclassification from nonaccretable difference, net	1,217	5,727	4,811	7,243
Ending balance	$ 22,611	$ 31,832	$ 22,611	$ 31,832

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Loan and Lease Receivables - Schedule of Unpaid Principal Balance and Carrying Value for Acquired Non-impaired Loans and Leases (Details) - USD ($) $ in Thousands	Sep. 30, 2021	Dec. 31, 2020	Sep. 30, 2020
Accounts Notes And Loans Receivable [Line Items]
Loans and leases	$ 4,609,228	$ 4,340,535	$ 4,374,517
Acquired Non-impaired Loans and Leases
Accounts Notes And Loans Receivable [Line Items]
Unpaid Principal Balance	358,792	481,612
Loans and leases	351,152	470,258
Commercial Real Estate
Accounts Notes And Loans Receivable [Line Items]
Loans and leases	1,618,378	1,421,670	1,347,855
Commercial Real Estate | Acquired Non-impaired Loans and Leases
Accounts Notes And Loans Receivable [Line Items]
Unpaid Principal Balance	240,271	302,091
Loans and leases	235,103	295,599
Residential Real Estate
Accounts Notes And Loans Receivable [Line Items]
Loans and leases	507,754	572,271	633,396
Residential Real Estate | Acquired Non-impaired Loans and Leases
Accounts Notes And Loans Receivable [Line Items]
Unpaid Principal Balance	58,858	80,104
Loans and leases	58,283	79,211
Construction, Land Development, and Other Land
Accounts Notes And Loans Receivable [Line Items]
Loans and leases	338,412	230,733	239,034
Construction, Land Development, and Other Land | Acquired Non-impaired Loans and Leases
Accounts Notes And Loans Receivable [Line Items]
Unpaid Principal Balance	271	278
Loans and leases	206	212
Commercial and Industrial
Accounts Notes And Loans Receivable [Line Items]
Loans and leases	1,536,405	1,368,900	1,328,809
Commercial and Industrial | Acquired Non-impaired Loans and Leases
Accounts Notes And Loans Receivable [Line Items]
Unpaid Principal Balance	51,468	84,608
Loans and leases	49,678	82,195
Installment and Other
Accounts Notes And Loans Receivable [Line Items]
Loans and leases	1,442	2,005	3,143
Installment and Other | Acquired Non-impaired Loans and Leases
Accounts Notes And Loans Receivable [Line Items]
Unpaid Principal Balance	286	553
Loans and leases	275	536
Lease Financing Receivables
Accounts Notes And Loans Receivable [Line Items]
Loans and leases	338,756	227,141	$ 200,089
Lease Financing Receivables | Acquired Non-impaired Loans and Leases
Accounts Notes And Loans Receivable [Line Items]
Unpaid Principal Balance	7,638	13,978
Loans and leases	$ 7,607	$ 12,505

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Allowance for Loan and Lease Losses and Reserve for Unfunded Commitments - Summary of Allowance for Loan and Lease Losses and Corresponding Loan and Lease Balances (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2021	Sep. 30, 2020	Sep. 30, 2021	Sep. 30, 2020	Dec. 31, 2020
Financing Receivable Allowance For Credit Losses [Line Items]
Beginning balance	$ 61,719	$ 51,300	$ 66,347	$ 31,936
Provisions (recapture)	352	15,740	2,750	45,713
Charge-offs	2,484	6,145	10,366	17,615
Recoveries	1,011	363	1,867	1,224
Ending balance	60,598	61,258	60,598	61,258
Individually evaluated for impairment	24,562	14,782	24,562	14,782
Collectively evaluated for impairment	31,761	41,445	31,761	41,445
Allowance for loan and lease losses	60,598	61,258	60,598	61,258	$ 66,347
Individually evaluated for impairment	87,198	77,890	87,198	77,890
Collectively evaluated for impairment	4,366,750	4,079,809	4,366,750	4,079,809
Total loans and leases	4,609,228	4,374,517	4,609,228	4,374,517	4,340,535
Loans Acquired with Deteriorated Credit Quality
Financing Receivable Allowance For Credit Losses [Line Items]
Loans acquired with deteriorated credit quality	4,275	5,031	4,275	5,031
Loans acquired with deteriorated credit quality	155,280	216,818	155,280	216,818
Commercial Real Estate
Financing Receivable Allowance For Credit Losses [Line Items]
Beginning balance	19,541	14,110	19,584	7,965
Provisions (recapture)	(1,108)	6,421	2,891	14,149
Charge-offs	564	1,566	2,644	3,206
Recoveries	287	19	541	76
Ending balance	20,372	18,984	20,372	18,984
Individually evaluated for impairment	8,420	4,516	8,420	4,516
Collectively evaluated for impairment	9,314	11,825	9,314	11,825
Allowance for loan and lease losses	20,372	18,984	20,372	18,984	19,584
Individually evaluated for impairment	45,563	39,001	45,563	39,001
Collectively evaluated for impairment	1,487,994	1,191,740	1,487,994	1,191,740
Total loans and leases	1,618,378	1,347,855	1,618,378	1,347,855	1,421,670
Commercial Real Estate | Loans Acquired with Deteriorated Credit Quality
Financing Receivable Allowance For Credit Losses [Line Items]
Loans acquired with deteriorated credit quality	2,638	2,643	2,638	2,643
Loans acquired with deteriorated credit quality	84,821	117,114	84,821	117,114
Residential Real Estate
Financing Receivable Allowance For Credit Losses [Line Items]
Beginning balance	1,364	3,741	2,400	1,990
Provisions (recapture)	(225)	291	(1,257)	2,031
Charge-offs	(65)	250	76	259
Recoveries	2	8	9	28
Ending balance	1,076	3,790	1,076	3,790
Individually evaluated for impairment	0	77	0	77
Collectively evaluated for impairment	723	3,413	723	3,413
Allowance for loan and lease losses	1,076	3,790	1,076	3,790	2,400
Individually evaluated for impairment	3,946	1,636	3,946	1,636
Collectively evaluated for impairment	441,915	547,563	441,915	547,563
Total loans and leases	507,754	633,396	507,754	633,396	572,271
Residential Real Estate | Loans Acquired with Deteriorated Credit Quality
Financing Receivable Allowance For Credit Losses [Line Items]
Loans acquired with deteriorated credit quality	353	300	353	300
Loans acquired with deteriorated credit quality	61,893	84,197	61,893	84,197
Construction, Land Development, and Other Land
Financing Receivable Allowance For Credit Losses [Line Items]
Beginning balance	619	1,491	1,352	610
Provisions (recapture)	(61)	1,029	(468)	1,910
Charge-offs	0	(701)	326	(701)
Recoveries	0	53	0	53
Ending balance	558	1,872	558	1,872
Individually evaluated for impairment	0	0	0	0
Collectively evaluated for impairment	550	1,685	550	1,685
Allowance for loan and lease losses	558	1,872	558	1,872	1,352
Individually evaluated for impairment	0	0	0	0
Collectively evaluated for impairment	336,666	234,230	336,666	234,230
Total loans and leases	338,412	239,034	338,412	239,034	230,733
Construction, Land Development, and Other Land | Loans Acquired with Deteriorated Credit Quality
Financing Receivable Allowance For Credit Losses [Line Items]
Loans acquired with deteriorated credit quality	8	187	8	187
Loans acquired with deteriorated credit quality	1,746	4,804	1,746	4,804
Commercial and Industrial
Financing Receivable Allowance For Credit Losses [Line Items]
Beginning balance	38,284	30,108	41,183	19,377
Provisions (recapture)	(1,218)	7,603	226	26,844
Charge-offs	1,456	3,254	6,172	12,057
Recoveries	380	83	753	376
Ending balance	35,990	34,540	35,990	34,540
Individually evaluated for impairment	16,142	10,189	16,142	10,189
Collectively evaluated for impairment	18,572	22,450	18,572	22,450
Allowance for loan and lease losses	35,990	34,540	35,990	34,540	41,183
Individually evaluated for impairment	37,689	37,253	37,689	37,253
Collectively evaluated for impairment	1,492,065	1,281,067	1,492,065	1,281,067
Total loans and leases	1,536,405	1,328,809	1,536,405	1,328,809	1,368,900
Commercial and Industrial | Loans Acquired with Deteriorated Credit Quality
Financing Receivable Allowance For Credit Losses [Line Items]
Loans acquired with deteriorated credit quality	1,276	1,901	1,276	1,901
Loans acquired with deteriorated credit quality	6,651	10,489	6,651	10,489
Paycheck Protection Program
Financing Receivable Allowance For Credit Losses [Line Items]
Beginning balance	0	0	0	0
Provisions (recapture)	0	0	0	0
Charge-offs	0	0	0	0
Recoveries	0	0	0	0
Ending balance	0	0	0	0
Individually evaluated for impairment	0	0	0	0
Collectively evaluated for impairment	0	0	0	0
Allowance for loan and lease losses	0	0	0	0	0
Individually evaluated for impairment	0	0	0	0
Collectively evaluated for impairment	268,081	622,191	268,081	622,191
Total loans and leases	268,081	622,191	268,081	622,191	517,815
Paycheck Protection Program | Loans Acquired with Deteriorated Credit Quality
Financing Receivable Allowance For Credit Losses [Line Items]
Loans acquired with deteriorated credit quality	0	0	0	0
Loans acquired with deteriorated credit quality	0	0	0	0
Installment and Other
Financing Receivable Allowance For Credit Losses [Line Items]
Beginning balance	9	36	15	50
Provisions (recapture)	(2)	(1)	(8)	(13)
Charge-offs	0	0	0	0
Recoveries	0	0	0	0
Ending balance	7	37	7	37
Individually evaluated for impairment	0	0	0	0
Collectively evaluated for impairment	7	37	7	37
Allowance for loan and lease losses	7	37	7	37	15
Individually evaluated for impairment	0	0	0	0
Collectively evaluated for impairment	1,273	2,929	1,273	2,929
Total loans and leases	1,442	3,143	1,442	3,143	2,005
Installment and Other | Loans Acquired with Deteriorated Credit Quality
Financing Receivable Allowance For Credit Losses [Line Items]
Loans acquired with deteriorated credit quality	0	0	0	0
Loans acquired with deteriorated credit quality	169	214	169	214
Lease Financing Receivables
Financing Receivable Allowance For Credit Losses [Line Items]
Beginning balance	1,902	1,814	1,813	1,944
Provisions (recapture)	750	395	1,366	792
Charge-offs	399	374	1,148	1,392
Recoveries	342	200	564	691
Ending balance	2,595	2,035	2,595	2,035
Individually evaluated for impairment	0	0	0	0
Collectively evaluated for impairment	2,595	2,035	2,595	2,035
Allowance for loan and lease losses	2,595	2,035	2,595	2,035	1,813
Individually evaluated for impairment	0	0	0	0
Collectively evaluated for impairment	338,756	200,089	338,756	200,089
Total loans and leases	338,756	200,089	338,756	200,089	$ 227,141
Lease Financing Receivables | Loans Acquired with Deteriorated Credit Quality
Financing Receivable Allowance For Credit Losses [Line Items]
Loans acquired with deteriorated credit quality	0	0	0	0
Loans acquired with deteriorated credit quality	$ 0	$ 0	$ 0	$ 0

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Allowance for Loan and Lease Losses and Reserve for Unfunded Commitments - Additional Information (Details) - USD ($)	3 Months Ended		9 Months Ended
	Sep. 30, 2021	Sep. 30, 2020	Sep. 30, 2021	Sep. 30, 2020	Dec. 31, 2020
Loans And Leases Receivable Disclosure [Line Items]
Increase (Recaptured) in allowance for loan and lease losses	$ (1,100,000)	$ 10,000,000.0	$ (5,700,000)	$ 29,300,000
Commitments outstanding on troubled debt restructurings	0		0		$ 0
Recorded investment in troubled debt restructurings that subsequently defaulted within twelve months	0	0	0	0
Reserve for unfunded commitments	1,500,000		1,500,000		$ 1,900,000
Provisions for (credits to) unfunded commitments	79,000	519,000	363,000	1,200,000
Charge-offs or recoveries related to reserve for unfunded commitments			0	0
Acquired Impaired Loans
Loans And Leases Receivable Disclosure [Line Items]
Increase (Recaptured) in allowance for loan and lease losses	405,000	295,000	2,200,000	2,300,000
Individually Evaluated For Impairment
Loans And Leases Receivable Disclosure [Line Items]
Increase (Recaptured) in allowance for loan and lease losses	(1,000,000.0)	768,000	602,000	4,100,000
Collectively Evaluated For Impairment
Loans And Leases Receivable Disclosure [Line Items]
Increase (Recaptured) in allowance for loan and lease losses	$ (498,000)	$ 8,900,000	$ (4,200,000)	$ 23,000,000.0

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Allowance for Loan and Lease Losses and Reserve for Unfunded Commitments - Summary of Recorded Investment, Unpaid Principal Balance, and Related Allowance for Loans and Leases Considered Impaired (Details) - USD ($) $ in Thousands	Sep. 30, 2021	Dec. 31, 2020
Financing Receivable Impaired [Line Items]
Recorded Investment		$ 95,355
Unpaid Principal Balance		103,564
Related Allowance		23,960
Loans Excluding Acquired Impaired Loans
Financing Receivable Impaired [Line Items]
Recorded Investment	$ 87,198
Unpaid Principal Balance	97,747
Related Allowance	24,562
Loans Excluding Acquired Impaired Loans | Commercial Real Estate
Financing Receivable Impaired [Line Items]
Recorded Investment, With no related allowance recorded	20,432	32,473
Recorded Investment, With an allowance recorded	25,131	13,696
Unpaid Principal Balance, With no related allowance recorded	25,512	34,792
Unpaid Principal Balance, With an allowance recorded	26,569	14,919
Related Allowance	8,420	5,034
Loans Excluding Acquired Impaired Loans | Residential Real Estate
Financing Receivable Impaired [Line Items]
Recorded Investment, With no related allowance recorded	3,850	1,558
Recorded Investment, With an allowance recorded	96	272
Unpaid Principal Balance, With no related allowance recorded	3,901	1,644
Unpaid Principal Balance, With an allowance recorded	152	274
Related Allowance	0	78
Loans Excluding Acquired Impaired Loans | Commercial and Industrial
Financing Receivable Impaired [Line Items]
Recorded Investment, With no related allowance recorded	14,212	17,944
Recorded Investment, With an allowance recorded	23,477	29,412
Unpaid Principal Balance, With no related allowance recorded	15,999	19,917
Unpaid Principal Balance, With an allowance recorded	25,614	32,018
Related Allowance	$ 16,142	$ 18,848

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Allowance for Loan and Lease Losses and Reserve for Unfunded Commitments - Summary of Average Recorded Investment and Interest Income Recognized for Loans and Leases Considered Impaired (Details) - Loans Excluding Acquired Impaired Loans - USD ($) $ in Thousands	9 Months Ended
	Sep. 30, 2021	Sep. 30, 2020
Financing Receivable Impaired [Line Items]
Average Recorded Investment	$ 104,548	$ 79,242
Interest Income Recognized	4,363	3,291
Commercial Real Estate
Financing Receivable Impaired [Line Items]
Average Recorded Investment, With no related allowance recorded	28,480	22,511
Average Recorded Investment, With an allowance recorded	27,620	13,329
Interest Income Recognized, With no related allowance recorded	920	927
Interest Income Recognized, With an allowance recorded	1,185	526
Residential Real Estate
Financing Receivable Impaired [Line Items]
Average Recorded Investment, With no related allowance recorded	2,788	1,615
Average Recorded Investment, With an allowance recorded	207	460
Interest Income Recognized, With no related allowance recorded	109	26
Interest Income Recognized, With an allowance recorded	2	21
Commercial and Industrial
Financing Receivable Impaired [Line Items]
Average Recorded Investment, With no related allowance recorded	16,668	16,991
Average Recorded Investment, With an allowance recorded	28,785	21,352
Interest Income Recognized, With no related allowance recorded	481	493
Interest Income Recognized, With an allowance recorded	$ 1,666	1,078
Construction, Land Development, and Other Land
Financing Receivable Impaired [Line Items]
Average Recorded Investment, With no related allowance recorded		2,984
Interest Income Recognized, With no related allowance recorded		$ 220

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Allowance for Loan and Lease Losses and Reserve for Unfunded Commitments - Summary of Risk Rating Categories of Loans and Leases Considered for Inclusion in Allowance for Loan and Lease Losses Calculation (Details) - USD ($) $ in Thousands	Sep. 30, 2021	Dec. 31, 2020	Sep. 30, 2020
Financing Receivable Recorded Investment [Line Items]
Total loans and leases	$ 4,609,228	$ 4,340,535	$ 4,374,517
Commercial Real Estate
Financing Receivable Recorded Investment [Line Items]
Total loans and leases	1,618,378	1,421,670	1,347,855
Residential Real Estate
Financing Receivable Recorded Investment [Line Items]
Total loans and leases	507,754	572,271	633,396
Construction, Land Development, and Other Land
Financing Receivable Recorded Investment [Line Items]
Total loans and leases	338,412	230,733	239,034
Commercial and Industrial
Financing Receivable Recorded Investment [Line Items]
Total loans and leases	1,536,405	1,368,900	1,328,809
Paycheck Protection Program
Financing Receivable Recorded Investment [Line Items]
Total loans and leases	268,081	517,815	622,191
Installment and Other
Financing Receivable Recorded Investment [Line Items]
Total loans and leases	1,442	2,005	3,143
Lease Financing Receivables
Financing Receivable Recorded Investment [Line Items]
Total loans and leases	338,756	227,141	$ 200,089
Loans Excluding Acquired Impaired Loans
Financing Receivable Recorded Investment [Line Items]
Total loans and leases	4,453,948	4,138,718
Loans Excluding Acquired Impaired Loans | Commercial Real Estate
Financing Receivable Recorded Investment [Line Items]
Total loans and leases	1,533,557	1,313,186
Loans Excluding Acquired Impaired Loans | Residential Real Estate
Financing Receivable Recorded Investment [Line Items]
Total loans and leases	445,861	493,431
Loans Excluding Acquired Impaired Loans | Construction, Land Development, and Other Land
Financing Receivable Recorded Investment [Line Items]
Total loans and leases	336,666	226,620
Loans Excluding Acquired Impaired Loans | Commercial and Industrial
Financing Receivable Recorded Investment [Line Items]
Total loans and leases	1,529,754	1,358,722
Loans Excluding Acquired Impaired Loans | Paycheck Protection Program
Financing Receivable Recorded Investment [Line Items]
Total loans and leases	268,081	517,815
Loans Excluding Acquired Impaired Loans | Installment and Other
Financing Receivable Recorded Investment [Line Items]
Total loans and leases	1,273	1,803
Loans Excluding Acquired Impaired Loans | Lease Financing Receivables
Financing Receivable Recorded Investment [Line Items]
Total loans and leases	338,756	227,141
Loans Excluding Acquired Impaired Loans | Pass
Financing Receivable Recorded Investment [Line Items]
Total loans and leases	3,878,401	3,477,922
Loans Excluding Acquired Impaired Loans | Pass | Commercial Real Estate
Financing Receivable Recorded Investment [Line Items]
Total loans and leases	1,297,981	1,064,623
Loans Excluding Acquired Impaired Loans | Pass | Residential Real Estate
Financing Receivable Recorded Investment [Line Items]
Total loans and leases	422,843	463,103
Loans Excluding Acquired Impaired Loans | Pass | Construction, Land Development, and Other Land
Financing Receivable Recorded Investment [Line Items]
Total loans and leases	291,496	180,458
Loans Excluding Acquired Impaired Loans | Pass | Commercial and Industrial
Financing Receivable Recorded Investment [Line Items]
Total loans and leases	1,261,335	1,027,399
Loans Excluding Acquired Impaired Loans | Pass | Paycheck Protection Program
Financing Receivable Recorded Investment [Line Items]
Total loans and leases	268,081	517,815
Loans Excluding Acquired Impaired Loans | Pass | Installment and Other
Financing Receivable Recorded Investment [Line Items]
Total loans and leases	1,190	1,706
Loans Excluding Acquired Impaired Loans | Pass | Lease Financing Receivables
Financing Receivable Recorded Investment [Line Items]
Total loans and leases	335,475	222,818
Loans Excluding Acquired Impaired Loans | Watch
Financing Receivable Recorded Investment [Line Items]
Total loans and leases	394,339	428,702
Loans Excluding Acquired Impaired Loans | Watch | Commercial Real Estate
Financing Receivable Recorded Investment [Line Items]
Total loans and leases	143,047	134,381
Loans Excluding Acquired Impaired Loans | Watch | Residential Real Estate
Financing Receivable Recorded Investment [Line Items]
Total loans and leases	16,862	22,086
Loans Excluding Acquired Impaired Loans | Watch | Construction, Land Development, and Other Land
Financing Receivable Recorded Investment [Line Items]
Total loans and leases	37,795	46,162
Loans Excluding Acquired Impaired Loans | Watch | Commercial and Industrial
Financing Receivable Recorded Investment [Line Items]
Total loans and leases	196,288	225,930
Loans Excluding Acquired Impaired Loans | Watch | Paycheck Protection Program
Financing Receivable Recorded Investment [Line Items]
Total loans and leases	0	0
Loans Excluding Acquired Impaired Loans | Watch | Installment and Other
Financing Receivable Recorded Investment [Line Items]
Total loans and leases	83	96
Loans Excluding Acquired Impaired Loans | Watch | Lease Financing Receivables
Financing Receivable Recorded Investment [Line Items]
Total loans and leases	264	47
Loans Excluding Acquired Impaired Loans | Special Mention
Financing Receivable Recorded Investment [Line Items]
Total loans and leases	91,791	123,322
Loans Excluding Acquired Impaired Loans | Special Mention | Commercial Real Estate
Financing Receivable Recorded Investment [Line Items]
Total loans and leases	48,605	60,022
Loans Excluding Acquired Impaired Loans | Special Mention | Residential Real Estate
Financing Receivable Recorded Investment [Line Items]
Total loans and leases	3,036	3,795
Loans Excluding Acquired Impaired Loans | Special Mention | Construction, Land Development, and Other Land
Financing Receivable Recorded Investment [Line Items]
Total loans and leases	7,375	0
Loans Excluding Acquired Impaired Loans | Special Mention | Commercial and Industrial
Financing Receivable Recorded Investment [Line Items]
Total loans and leases	30,841	56,784
Loans Excluding Acquired Impaired Loans | Special Mention | Paycheck Protection Program
Financing Receivable Recorded Investment [Line Items]
Total loans and leases	0	0
Loans Excluding Acquired Impaired Loans | Special Mention | Installment and Other
Financing Receivable Recorded Investment [Line Items]
Total loans and leases	0	0
Loans Excluding Acquired Impaired Loans | Special Mention | Lease Financing Receivables
Financing Receivable Recorded Investment [Line Items]
Total loans and leases	1,934	2,721
Loans Excluding Acquired Impaired Loans | Substandard
Financing Receivable Recorded Investment [Line Items]
Total loans and leases	89,120	108,172
Loans Excluding Acquired Impaired Loans | Substandard | Commercial Real Estate
Financing Receivable Recorded Investment [Line Items]
Total loans and leases	43,924	54,160
Loans Excluding Acquired Impaired Loans | Substandard | Residential Real Estate
Financing Receivable Recorded Investment [Line Items]
Total loans and leases	3,120	4,447
Loans Excluding Acquired Impaired Loans | Substandard | Construction, Land Development, and Other Land
Financing Receivable Recorded Investment [Line Items]
Total loans and leases	0	0
Loans Excluding Acquired Impaired Loans | Substandard | Commercial and Industrial
Financing Receivable Recorded Investment [Line Items]
Total loans and leases	41,290	48,609
Loans Excluding Acquired Impaired Loans | Substandard | Paycheck Protection Program
Financing Receivable Recorded Investment [Line Items]
Total loans and leases	0	0
Loans Excluding Acquired Impaired Loans | Substandard | Installment and Other
Financing Receivable Recorded Investment [Line Items]
Total loans and leases	0	1
Loans Excluding Acquired Impaired Loans | Substandard | Lease Financing Receivables
Financing Receivable Recorded Investment [Line Items]
Total loans and leases	786	955
Loans Excluding Acquired Impaired Loans | Doubtful
Financing Receivable Recorded Investment [Line Items]
Total loans and leases	297	600
Loans Excluding Acquired Impaired Loans | Doubtful | Commercial Real Estate
Financing Receivable Recorded Investment [Line Items]
Total loans and leases	0	0
Loans Excluding Acquired Impaired Loans | Doubtful | Residential Real Estate
Financing Receivable Recorded Investment [Line Items]
Total loans and leases	0	0
Loans Excluding Acquired Impaired Loans | Doubtful | Construction, Land Development, and Other Land
Financing Receivable Recorded Investment [Line Items]
Total loans and leases	0	0
Loans Excluding Acquired Impaired Loans | Doubtful | Commercial and Industrial
Financing Receivable Recorded Investment [Line Items]
Total loans and leases	0	0
Loans Excluding Acquired Impaired Loans | Doubtful | Paycheck Protection Program
Financing Receivable Recorded Investment [Line Items]
Total loans and leases	0	0
Loans Excluding Acquired Impaired Loans | Doubtful | Installment and Other
Financing Receivable Recorded Investment [Line Items]
Total loans and leases	0	0
Loans Excluding Acquired Impaired Loans | Doubtful | Lease Financing Receivables
Financing Receivable Recorded Investment [Line Items]
Total loans and leases	297	600
Loans Excluding Acquired Impaired Loans | Loss
Financing Receivable Recorded Investment [Line Items]
Total loans and leases		0
Loans Excluding Acquired Impaired Loans | Loss | Commercial Real Estate
Financing Receivable Recorded Investment [Line Items]
Total loans and leases	0	0
Loans Excluding Acquired Impaired Loans | Loss | Residential Real Estate
Financing Receivable Recorded Investment [Line Items]
Total loans and leases	0	0
Loans Excluding Acquired Impaired Loans | Loss | Construction, Land Development, and Other Land
Financing Receivable Recorded Investment [Line Items]
Total loans and leases	0	0
Loans Excluding Acquired Impaired Loans | Loss | Commercial and Industrial
Financing Receivable Recorded Investment [Line Items]
Total loans and leases	0	0
Loans Excluding Acquired Impaired Loans | Loss | Paycheck Protection Program
Financing Receivable Recorded Investment [Line Items]
Total loans and leases	0	0
Loans Excluding Acquired Impaired Loans | Loss | Installment and Other
Financing Receivable Recorded Investment [Line Items]
Total loans and leases	$ 0	0
Loans Excluding Acquired Impaired Loans | Loss | Lease Financing Receivables
Financing Receivable Recorded Investment [Line Items]
Total loans and leases		$ 0

XML

Allowance for Loan and Lease Losses and Reserve for Unfunded Commitments - Summary of Contractual Delinquency Information (Details) - USD ($) $ in Thousands	Sep. 30, 2021	Dec. 31, 2020	Sep. 30, 2020
Financing Receivable Recorded Investment Past Due [Line Items]
Total loans and leases	$ 4,609,228	$ 4,340,535	$ 4,374,517
Commercial Real Estate
Financing Receivable Recorded Investment Past Due [Line Items]
Total loans and leases	1,618,378	1,421,670	1,347,855
Residential Real Estate
Financing Receivable Recorded Investment Past Due [Line Items]
Total loans and leases	507,754	572,271	633,396
Construction, Land Development, and Other Land
Financing Receivable Recorded Investment Past Due [Line Items]
Total loans and leases	338,412	230,733	239,034
Commercial and Industrial
Financing Receivable Recorded Investment Past Due [Line Items]
Total loans and leases	1,536,405	1,368,900	1,328,809
Paycheck Protection Program
Financing Receivable Recorded Investment Past Due [Line Items]
Total loans and leases	268,081	517,815	622,191
Installment and Other
Financing Receivable Recorded Investment Past Due [Line Items]
Total loans and leases	1,442	2,005	3,143
Lease Financing Receivables
Financing Receivable Recorded Investment Past Due [Line Items]
Total loans and leases	338,756	227,141	$ 200,089
Acquired Non-Impaired and Originated Loans
Financing Receivable Recorded Investment Past Due [Line Items]
Total Past Due	42,700	55,716
Non-accrual	34,465	41,103
Current	4,411,248	4,083,002
Total loans and leases	4,453,948	4,138,718
Acquired Non-Impaired and Originated Loans | 30-59 Days Past Due
Financing Receivable Recorded Investment Past Due [Line Items]
Total Past Due	6,117	8,753
Acquired Non-Impaired and Originated Loans | 60-89 Days Past Due
Financing Receivable Recorded Investment Past Due [Line Items]
Total Past Due	2,118	5,860
Acquired Non-Impaired and Originated Loans | Greater than 90 Days and Accruing
Financing Receivable Recorded Investment Past Due [Line Items]
Total Past Due	0	0
Acquired Non-Impaired and Originated Loans | Commercial Real Estate
Financing Receivable Recorded Investment Past Due [Line Items]
Total Past Due	18,838	21,707
Non-accrual	17,082	15,969
Current	1,514,719	1,291,479
Total loans and leases	1,533,557	1,313,186
Acquired Non-Impaired and Originated Loans | Commercial Real Estate | 30-59 Days Past Due
Financing Receivable Recorded Investment Past Due [Line Items]
Total Past Due	330	1,544
Acquired Non-Impaired and Originated Loans | Commercial Real Estate | 60-89 Days Past Due
Financing Receivable Recorded Investment Past Due [Line Items]
Total Past Due	1,426	4,194
Acquired Non-Impaired and Originated Loans | Commercial Real Estate | Greater than 90 Days and Accruing
Financing Receivable Recorded Investment Past Due [Line Items]
Total Past Due	0	0
Acquired Non-Impaired and Originated Loans | Residential Real Estate
Financing Receivable Recorded Investment Past Due [Line Items]
Total Past Due	3,214	3,615
Non-accrual	2,127	1,929
Current	442,647	489,816
Total loans and leases	445,861	493,431
Acquired Non-Impaired and Originated Loans | Residential Real Estate | 30-59 Days Past Due
Financing Receivable Recorded Investment Past Due [Line Items]
Total Past Due	1,087	1,686
Acquired Non-Impaired and Originated Loans | Residential Real Estate | 60-89 Days Past Due
Financing Receivable Recorded Investment Past Due [Line Items]
Total Past Due	0
Acquired Non-Impaired and Originated Loans | Residential Real Estate | Greater than 90 Days and Accruing
Financing Receivable Recorded Investment Past Due [Line Items]
Total Past Due	0	0
Acquired Non-Impaired and Originated Loans | Construction, Land Development, and Other Land
Financing Receivable Recorded Investment Past Due [Line Items]
Total Past Due	2,035	0
Non-accrual	0	0
Current	334,631	226,620
Total loans and leases	336,666	226,620
Acquired Non-Impaired and Originated Loans | Construction, Land Development, and Other Land | 30-59 Days Past Due
Financing Receivable Recorded Investment Past Due [Line Items]
Total Past Due	2,035	0
Acquired Non-Impaired and Originated Loans | Construction, Land Development, and Other Land | 60-89 Days Past Due
Financing Receivable Recorded Investment Past Due [Line Items]
Total Past Due	0	0
Acquired Non-Impaired and Originated Loans | Construction, Land Development, and Other Land | Greater than 90 Days and Accruing
Financing Receivable Recorded Investment Past Due [Line Items]
Total Past Due	0	0
Acquired Non-Impaired and Originated Loans | Commercial and Industrial
Financing Receivable Recorded Investment Past Due [Line Items]
Total Past Due	16,519	27,747
Non-accrual	14,272	21,936
Current	1,513,235	1,330,975
Total loans and leases	1,529,754	1,358,722
Acquired Non-Impaired and Originated Loans | Commercial and Industrial | 30-59 Days Past Due
Financing Receivable Recorded Investment Past Due [Line Items]
Total Past Due	1,653	4,521
Acquired Non-Impaired and Originated Loans | Commercial and Industrial | 60-89 Days Past Due
Financing Receivable Recorded Investment Past Due [Line Items]
Total Past Due	594	1,290
Acquired Non-Impaired and Originated Loans | Commercial and Industrial | Greater than 90 Days and Accruing
Financing Receivable Recorded Investment Past Due [Line Items]
Total Past Due	0	0
Acquired Non-Impaired and Originated Loans | Paycheck Protection Program
Financing Receivable Recorded Investment Past Due [Line Items]
Total Past Due	0
Non-accrual	0
Current	268,081	517,815
Total loans and leases	268,081	517,815
Acquired Non-Impaired and Originated Loans | Paycheck Protection Program | 30-59 Days Past Due
Financing Receivable Recorded Investment Past Due [Line Items]
Total Past Due	0
Acquired Non-Impaired and Originated Loans | Paycheck Protection Program | 60-89 Days Past Due
Financing Receivable Recorded Investment Past Due [Line Items]
Total Past Due	0
Acquired Non-Impaired and Originated Loans | Paycheck Protection Program | Greater than 90 Days and Accruing
Financing Receivable Recorded Investment Past Due [Line Items]
Total Past Due	0
Acquired Non-Impaired and Originated Loans | Installment and Other
Financing Receivable Recorded Investment Past Due [Line Items]
Total Past Due	39	7
Non-accrual	0	1
Current	1,234	1,796
Total loans and leases	1,273	1,803
Acquired Non-Impaired and Originated Loans | Installment and Other | 30-59 Days Past Due
Financing Receivable Recorded Investment Past Due [Line Items]
Total Past Due	39	6
Acquired Non-Impaired and Originated Loans | Installment and Other | 60-89 Days Past Due
Financing Receivable Recorded Investment Past Due [Line Items]
Total Past Due	0	0
Acquired Non-Impaired and Originated Loans | Installment and Other | Greater than 90 Days and Accruing
Financing Receivable Recorded Investment Past Due [Line Items]
Total Past Due	0	0
Acquired Non-Impaired and Originated Loans | Lease Financing Receivables
Financing Receivable Recorded Investment Past Due [Line Items]
Total Past Due	2,055	2,640
Non-accrual	984	1,268
Current	336,701	224,501
Total loans and leases	338,756	227,141
Acquired Non-Impaired and Originated Loans | Lease Financing Receivables | 30-59 Days Past Due
Financing Receivable Recorded Investment Past Due [Line Items]
Total Past Due	973	996
Acquired Non-Impaired and Originated Loans | Lease Financing Receivables | 60-89 Days Past Due
Financing Receivable Recorded Investment Past Due [Line Items]
Total Past Due	98	376
Acquired Non-Impaired and Originated Loans | Lease Financing Receivables | Greater than 90 Days and Accruing
Financing Receivable Recorded Investment Past Due [Line Items]
Total Past Due	$ 0	$ 0

XML

Allowance for Loan and Lease Losses and Reserve for Unfunded Commitments - Summary of TDR's by Loan Category (Details) $ in Thousands	9 Months Ended	12 Months Ended
	Sep. 30, 2021 USD ($) Loan	Dec. 31, 2020 USD ($) Loan
Financing Receivable Modifications [Line Items]
Number of Loans | Loan	16	30
Pre-Modification Outstanding Recorded Investment		$ 8,524
Post-Modification Outstanding Recorded Investment	$ 4,213	8,145
Charge-offs	739	379
Specific Reserves	$ 1,091	$ 3,441
Accruing
Financing Receivable Modifications [Line Items]
Number of Loans | Loan	10	12
Pre-Modification Outstanding Recorded Investment	$ 2,366	$ 2,495
Post-Modification Outstanding Recorded Investment	2,366	2,495
Specific Reserves	$ 272	$ 182
Non-accruing
Financing Receivable Modifications [Line Items]
Number of Loans | Loan	6	18
Pre-Modification Outstanding Recorded Investment	$ 2,586	$ 6,029
Post-Modification Outstanding Recorded Investment	1,847	5,650
Charge-offs	739	379
Specific Reserves	819	$ 3,259
Commercial Real Estate
Financing Receivable Modifications [Line Items]
Pre-Modification Outstanding Recorded Investment	$ 4,952
Commercial Real Estate | Accruing
Financing Receivable Modifications [Line Items]
Number of Loans | Loan	7	8
Pre-Modification Outstanding Recorded Investment	$ 2,130	$ 2,187
Post-Modification Outstanding Recorded Investment	2,130	2,187
Specific Reserves	$ 209	$ 104
Commercial Real Estate | Non-accruing
Financing Receivable Modifications [Line Items]
Number of Loans | Loan	3	4
Pre-Modification Outstanding Recorded Investment	$ 856	$ 1,609
Post-Modification Outstanding Recorded Investment	740	1,362
Charge-offs	116	247
Specific Reserves	$ 311	$ 102
Commercial and Industrial | Accruing
Financing Receivable Modifications [Line Items]
Number of Loans | Loan	1	1
Pre-Modification Outstanding Recorded Investment	$ 63	$ 78
Post-Modification Outstanding Recorded Investment	63	78
Specific Reserves	$ 63	$ 78
Commercial and Industrial | Non-accruing
Financing Receivable Modifications [Line Items]
Number of Loans | Loan	3	14
Pre-Modification Outstanding Recorded Investment	$ 1,730	$ 4,420
Post-Modification Outstanding Recorded Investment	1,107	4,288
Charge-offs	623	132
Specific Reserves	$ 508	$ 3,157
Residential Real Estate | Accruing
Financing Receivable Modifications [Line Items]
Number of Loans | Loan	2	3
Pre-Modification Outstanding Recorded Investment	$ 173	$ 230
Post-Modification Outstanding Recorded Investment	173	230
Specific Reserves	$ 0	$ 0

XML

Allowance for Loan and Lease Losses and Reserve for Unfunded Commitments - Summary of Loans Modified as Troubled Debt Restructurings (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2021	Sep. 30, 2020	Sep. 30, 2021	Sep. 30, 2020
Receivables [Abstract]
Beginning balance	$ 2,395	$ 3,151	$ 2,495	$ 1,771
Additions	0	604	281	604
Net payments	(29)	(1,462)	(410)	(1,538)
Net transfers from non-accrual	0	0	0	1,456
Ending balance	2,366	2,293	2,366	2,293
Beginning balance	4,441	7,449	5,650	8,800
Additions	0	0	673	5,633
Net payments	(2,584)	(302)	(3,568)	(1,688)
Charge-offs	(10)	(852)	(908)	(4,994)
Net transfers to accrual	0	0	0	(1,456)
Ending balance	1,847	6,295	1,847	6,295
Total troubled debt restructurings	$ 4,213	$ 8,588	$ 4,213	$ 8,588

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Servicing Assets - Activity for Servicing Assets and Related Changes in Fair Value (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2021	Sep. 30, 2020	Sep. 30, 2021	Sep. 30, 2020
Transfers And Servicing [Abstract]
Beginning balance	$ 24,683	$ 18,351	$ 22,042	$ 19,471
Additions, net	1,564	1,794	5,703	4,449
Changes in fair value	(2,650)	1,122	(4,148)	(2,653)
Ending balance	$ 23,597	$ 21,267	$ 23,597	$ 21,267

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Servicing Assets - Unpaid Principal Balances of Loans Serviced for Others (Details) - USD ($) $ in Thousands	Sep. 30, 2021	Dec. 31, 2020
Loan portfolios serviced for:
Unpaid principal balances of loans serviced	$ 1,615,214	$ 1,531,256
SBA guaranteed loans
Loan portfolios serviced for:
Unpaid principal balances of loans serviced	1,471,367	1,395,713
USDA guaranteed loans
Loan portfolios serviced for:
Unpaid principal balances of loans serviced	$ 143,847	$ 135,543

XML

Servicing Assets - Additional Information (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2021	Sep. 30, 2020	Sep. 30, 2021	Sep. 30, 2020
Accounts Notes And Loans Receivable [Line Items]
Changes in fair value of servicing assets	$ (2,650)	$ 1,122	$ (4,148)	$ (2,653)
Loan Servicing Revenue [Member]
Accounts Notes And Loans Receivable [Line Items]
Fair value of servicing assets	$ 3,300	$ 2,900	$ 9,300	$ 8,700

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Other Real Estate Owned - Change in Other Real Estate Owned (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2021	Sep. 30, 2020	Sep. 30, 2021	Sep. 30, 2020
Real Estate [Abstract]
Other real estate owned, beginning balance	$ 4,417	$ 8,652	$ 6,350	$ 9,896
Net additions to OREO	0	41	436	127
Proceeds from sales of OREO	(1,498)	(224)	(2,998)	(874)
Gains on sales of OREO	114	(41)	133	44
Valuation adjustments	0	(278)	(888)	(1,043)
Other real estate owned, ending balance	$ 3,033	$ 8,150	$ 3,033	$ 8,150

XML

Other Real Estate Owned - Additional Information (Details) - USD ($)	3 Months Ended		9 Months Ended
	Sep. 30, 2021	Sep. 30, 2020	Sep. 30, 2021	Sep. 30, 2020	Jun. 30, 2021	Dec. 31, 2020	Jun. 30, 2020	Dec. 31, 2019
Real Estate [Line Items]
Foreclosed real estate properties recorded as result of obtaining physical possession of property	$ 3,033,000	$ 8,150,000	$ 3,033,000	$ 8,150,000	$ 4,417,000	$ 6,350,000	$ 8,652,000	$ 9,896,000
Residential consumer mortgage loans in process of foreclosure	3,100,000		3,100,000			3,300,000
Proceeds from sale of internally financed sales of OREO	0	$ 0	0	$ 0
Residential Real Estate
Real Estate [Line Items]
Foreclosed real estate properties recorded as result of obtaining physical possession of property	$ 0		$ 0			$ 0

XML

Leases - Additional Information (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2021	Sep. 30, 2020	Sep. 30, 2021	Sep. 30, 2020
Leases [Abstract]
Lessor, Operating Lease Maturity Year			2042
Weighted-average discount rate of operating leases	0.85%		0.85%
Weighted average remaining life of operating leases	6 years		6 years
Rental expenses	$ 1,200	$ 1,600	$ 4,000	$ 4,900
Sublease Income	166,000	$ 184,000	479,000	$ 549,000
Minimum rental to be received in future on subleases	$ 1,500		$ 1,500
Sublease contract maturity year			2026

XML

Leases - Schedule of Operating Lease Right-of-use Asset and Liability (Details) $ in Thousands	Sep. 30, 2021 USD ($)
Lessee Lease Description [Line Items]
Operating lease liabilities	$ 13,744
Accrued Interest Receivable and Other Assets
Lessee Lease Description [Line Items]
Operating right-of-use assets	11,580
Accrued Interest Payable and Other Liabilities
Lessee Lease Description [Line Items]
Operating lease liabilities	$ 13,744

XML

Leases - Schedule of Future Minimum Lease Payments for Operating Leases (Details) $ in Thousands	Sep. 30, 2021 USD ($)
Leases [Abstract]
2021	$ 1,515
2022	3,618
2023	2,412
2024	2,194
2025	1,505
Thereafter	3,108
Total undiscounted lease payments	14,352
Less: imputed interest	(608)
Net lease liabilities	$ 13,744

XML

Goodwill, Core Deposit Intangible and Other Intangible Assets - Summary of Changes in Goodwill, Core Deposit Intangible Assets and Customer Relationship Intangible Assets (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2021	Sep. 30, 2020	Sep. 30, 2021	Sep. 30, 2020
Schedule Of Goodwill And Intangible Assets [Line Items]
Beginning balance, Goodwill	$ 148,353	$ 148,353	$ 148,353	$ 148,353
Ending balance, Goodwill	148,353	148,353	148,353	148,353
Amortization	(1,738)	(1,947)	(5,335)	(5,732)
Core Deposits
Schedule Of Goodwill And Intangible Assets [Line Items]
Ending balance, Goodwill	16,674		16,674
Beginning balance	18,346	25,459	21,809	29,111
Amortization	(1,672)	(1,825)	(5,135)	(5,477)
Ending balance	16,674	23,634	16,674	23,634
Accumulated amortization	$ 38,792	$ 31,832	$ 38,792	$ 31,832
Weighted average remaining amortization period	5 years	5 years 9 months 18 days	5 years	5 years 9 months 18 days
Customer Relationships
Schedule Of Goodwill And Intangible Assets [Line Items]
Beginning balance	$ 2,335	$ 2,658	$ 2,469	$ 2,791
Amortization	(66)	(122)	(200)	(255)
Ending balance	2,269	2,536	2,269	2,536
Accumulated amortization	$ 947	$ 680	$ 947	$ 680
Weighted average remaining amortization period	8 years 6 months	9 years 8 months 12 days	8 years 6 months	9 years 8 months 12 days

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Goodwill, Core Deposit Intangible and Other Intangible Assets - Estimated Amortization Expense for Core Deposit Intangible and Customer Relationship Intangible Recognized (Details) $ in Thousands	Sep. 30, 2021 USD ($)
Goodwill And Intangible Assets Disclosure [Abstract]
2021	$ 1,737
2022	6,386
2023	4,336
2024	2,286
2025	1,721
Thereafter	2,477
Total	$ 18,943

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Income Taxes - Additional Information (Details) - USD ($)	9 Months Ended
	Sep. 30, 2021	Sep. 30, 2020	Dec. 31, 2023	Dec. 31, 2022	Dec. 31, 2020
Operating Loss Carryforwards [Line Items]
Effective tax rate	25.30%	28.50%
Net income tax provision related to exercise of stock options	$ 166,000
Net income tax benefit related to vesting of restricted shares		$ 231,000
Deferred tax assets, net	45,200,000				$ 40,200,000
State and Local Jurisdiction
Operating Loss Carryforwards [Line Items]
Net operating loss carryforwards	$ 100,000
Operating Loss Carryforwards Expiration Term	Dec. 31, 2033
State and Local Jurisdiction | Forecast
Operating Loss Carryforwards [Line Items]
Net operating loss carryforwards			$ 100,000	$ 100,000

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Deposits - Composition of Deposits (Details) - USD ($) $ in Thousands	Sep. 30, 2021	Dec. 31, 2020
Deposits [Abstract]
Non-interest-bearing demand deposits	$ 2,117,749	$ 1,762,676
Interest-bearing checking accounts	652,824	494,424
Money market demand accounts	1,057,419	1,142,709
Other savings	627,294	564,700
Time deposits (below $250,000)	553,364	600,810
Time deposits ($250,000 and above)	149,628	186,712
Total deposits	$ 5,158,278	$ 4,752,031

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Deposits - Additional Information (Details) - USD ($)	Sep. 30, 2021	Dec. 31, 2020
Deposits [Abstract]
Time deposits	$ 250,000,000	$ 35,000,000.0
Brokered deposits	$ 0	$ 0

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Other Borrowings - Summary of Other Borrowings (Details) - USD ($) $ in Thousands	Sep. 30, 2021	Dec. 31, 2020
Debt Disclosure [Abstract]
Paycheck Protection Program Liquidity Facility	$ 156,404	$ 371,907
Federal Home Loan Bank advances	355,000	234,000
Securities sold under agreements to repurchase	27,715	41,994
Line of credit
Total	$ 539,119	$ 647,901

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Other Borrowings - Additional Information (Details) - USD ($)				9 Months Ended
	Oct. 08, 2021	Apr. 21, 2020	Oct. 10, 2019	Sep. 30, 2021	Dec. 31, 2020	Oct. 13, 2016
Line Of Credit Facility [Line Items]
Paycheck protection program liquidity facility				$ 156,404,000	$ 371,907,000
Federal Reserve Bank discount window borrowing				0	0
Federal Home Loan Bank advances				$ 355,000,000	234,000,000
Federal home loan bank advances maximum borrowing capacity as percentage of total assets				35.00%
Federal home loan bank, required investment conversion ratio				4.50
Line of credit facility, amount
Minimum
Line Of Credit Facility [Line Items]
Federal home loan bank advances, Fixed interest rate				0.00%
Federal home loan bank fixed rate advances, maturity date				2021-11
Maximum
Line Of Credit Facility [Line Items]
Federal home loan bank advances, Fixed interest rate				22.00%
Federal home loan bank fixed rate advances, maturity date				2022-05
Federal Reserve Bank of Chicago Discount Window Line
Line Of Credit Facility [Line Items]
Paycheck protection program liquidity facility				$ 156,400,000
Debt instrument, interest rate				0.35%
Federal Reserve Bank of Chicago Discount Window Line | Minimum
Line Of Credit Facility [Line Items]
Line of credit facility, maturity month and year				2022-04
Federal Reserve Bank of Chicago Discount Window Line | Maximum
Line Of Credit Facility [Line Items]
Line of credit facility, maturity month and year				2026-02
Federal Reserve Bank of Chicago Discount Window Line | Letter Agreement
Line Of Credit Facility [Line Items]
Interest rate spread		0.35%
Correspondent Bank | Credit agreement | Ridgestone
Line Of Credit Facility [Line Items]
Line of credit facility, amount						$ 30,000,000.0
Correspondent Bank | Fourth Amendment Revolving Credit Agreement | Ridgestone
Line Of Credit Facility [Line Items]
Line of credit facility, amount			$ 15,000,000.0	$ 0	$ 0
Line of credit facility, extended maturity date	Oct. 07, 2022		Oct. 09, 2020
Line of credit facility, interest rate terms				The amended revolving line of credit bears interest at either the London Interbank Offered Rate (“LIBOR”) plus 195 basis points or the Prime Rate minus 75 basis points, not to be less than 2.00%, based on the Company’s election, which is required to be communicated at least three business days prior to the commencement of an interest period. If the Company fails to provide timely notification, the interest rate will be Prime Rate minus 75 basis points. At September 30, 2021 and December 31, 2020, the line of credit had no outstanding balance.
Correspondent Bank | Amended Credit Agreement | Ridgestone | LIBOR Rate
Line Of Credit Facility [Line Items]
Interest rate spread			1.95%
Correspondent Bank | Amended Credit Agreement | Ridgestone | Prime Rate
Line Of Credit Facility [Line Items]
Interest rate spread			0.75%

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Other Borrowings - Summary of Short-term Credit Lines Available for Use (Details) - USD ($) $ in Thousands	Sep. 30, 2021	Dec. 31, 2020
Federal Home Loan Bank Line
Debt Instrument [Line Items]
Short-term credit lines available for use	$ 1,910,295	$ 2,016,212
Federal Reserve Bank of Chicago Discount Window Line
Debt Instrument [Line Items]
Short-term credit lines available for use	622,306	874,677
Available Federal Funds Line
Debt Instrument [Line Items]
Short-term credit lines available for use	$ 115,000	$ 115,000

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Subordinated Notes and Junior Subordinated Debentures - Additional Information (Details) - USD ($)	9 Months Ended	12 Months Ended
	Sep. 30, 2021	Dec. 31, 2020
Debt Instrument [Line Items]
Principal amount	$ 45,000,000	$ 45,000,000
Fixed-To-Floating Subordinate Notes Mature on July 1, 2030 | Subordinated Notes
Debt Instrument [Line Items]
Debt instrument, face amount		$ 75,000,000.0
Debt instrument, interest rate		6.00%
Debt instrument, maturity date		Jul. 01, 2030
Debt instrument, redemption, description	As of September 30, 2021, the net liability outstanding of the subordinated notes was $73.5 million. The Company may, at its option, redeem the notes, in whole or in part, on a semi-annual basis beginning on July 1, 2025, subject to obtaining the prior approval of the Federal Reserve to the extent such approval is then required.
Debt issuance costs		$ 1,700,000
Debt issuance costs, amortization period		10 years
Net liability outstanding of subordinated notes	$ 73,500,000
Fixed-To-Floating Subordinate Notes Mature on July 1, 2030 | Subordinated Notes | Three-Month Secured Overnight Financing Rate Plus 588 Basis Points
Debt Instrument [Line Items]
Debt instrument, description of variable rate basis	The subordinated notes bear a fixed interest rate of 6.00% until July 1, 2025 and a floating interest rate equal to a benchmark rate, which is expected to be the three-month Secured Overnight Financing Rate, plus 588 basis points thereafter until maturity.
Metropolitan Statutory Trust 1
Debt Instrument [Line Items]
Principal amount	$ 35,000,000	$ 35,000,000
Metropolitan Statutory Trust 1 | Junior Subordinated Debentures
Debt Instrument [Line Items]
Debt instrument, maturity date	Mar. 17, 2034
Contractual rate	2.91%	3.02%
Accrued interest payable	$ 41,000	$ 45,000
Metropolitan Statutory Trust 1 | Junior Subordinated Debentures | Three-month LIBOR
Debt Instrument [Line Items]
Debt instrument, description of variable rate basis	Three-monthLIBOR + 2.79%
Interest rate spread	2.79%	2.79%
First Evanston Bancorp Trust I
Debt Instrument [Line Items]
Principal amount	$ 10,000,000	$ 10,000,000
First Evanston Bancorp Trust I | Junior Subordinated Debentures
Debt Instrument [Line Items]
Debt instrument, maturity date	Mar. 15, 2035
Contractual rate	1.90%	2.00%
Accrued interest payable	$ 8,000	$ 9,000
First Evanston Bancorp Trust I | Junior Subordinated Debentures | Three-month LIBOR
Debt Instrument [Line Items]
Debt instrument, description of variable rate basis	Three-monthLIBOR + 1.78%
Interest rate spread	1.78%	1.78%

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Subordinated Notes and Junior Subordinated Debentures - Junior Subordinated Debentures by Issuance (Details) - USD ($) $ in Thousands	9 Months Ended	12 Months Ended
	Sep. 30, 2021	Dec. 31, 2020
Shares Subject To Mandatory Redemption By Settlement Terms [Line Items]
Total liability, at par	$ 45,000	$ 45,000
Total liability, at carrying value	36,796	36,451
Metropolitan Statutory Trust 1
Shares Subject To Mandatory Redemption By Settlement Terms [Line Items]
Total liability, at par	35,000	35,000
First Evanston Bancorp Trust I
Shares Subject To Mandatory Redemption By Settlement Terms [Line Items]
Total liability, at par	10,000	10,000
Junior Subordinated Debentures
Shares Subject To Mandatory Redemption By Settlement Terms [Line Items]
Discount	$ (8,204)	$ (8,549)
Junior Subordinated Debentures | Metropolitan Statutory Trust 1
Shares Subject To Mandatory Redemption By Settlement Terms [Line Items]
Stated Maturity	Mar. 17, 2034
Contractual Rate	2.91%	3.02%
Junior Subordinated Debentures | Metropolitan Statutory Trust 1 | Three-month LIBOR
Shares Subject To Mandatory Redemption By Settlement Terms [Line Items]
Interest Rate Spread, Description	Three-monthLIBOR + 2.79%
Interest Rate Spread	2.79%	2.79%
Junior Subordinated Debentures | First Evanston Bancorp Trust I
Shares Subject To Mandatory Redemption By Settlement Terms [Line Items]
Stated Maturity	Mar. 15, 2035
Contractual Rate	1.90%	2.00%
Junior Subordinated Debentures | First Evanston Bancorp Trust I | Three-month LIBOR
Shares Subject To Mandatory Redemption By Settlement Terms [Line Items]
Interest Rate Spread, Description	Three-monthLIBOR + 1.78%
Interest Rate Spread	1.78%	1.78%

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Commitments and Contingent Liabilities - Summary of Contract or Notional Amount of Outstanding Loan and Lease Commitments (Details) - USD ($) $ in Thousands	9 Months Ended	12 Months Ended
	Sep. 30, 2021	Dec. 31, 2020
Commitments And Contingencies Liabilities [Line Items]
Fixed Rate	$ 174,501	$ 106,835
Variable Rate	1,579,465	1,319,992
Total	1,753,966	1,426,827
Commitments to Extend Credit
Commitments And Contingencies Liabilities [Line Items]
Fixed Rate	173,848	106,183
Variable Rate	1,520,986	1,261,872
Total	1,694,834	1,368,055
Letters of Credit
Commitments And Contingencies Liabilities [Line Items]
Fixed Rate	653	652
Variable Rate	58,479	58,120
Total	$ 59,132	$ 58,772

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Commitments and Contingent Liabilities - Additional Information (Details)	9 Months Ended
	Sep. 30, 2021
Commitments And Contingencies Liabilities [Line Items]
Fixed rate loan commitments maturity year	2050
Variable rate loan commitments maturity year	2044
Maximum
Commitments And Contingencies Liabilities [Line Items]
Commitments to make loans period	90 days
Loan commitments fixed interest rate	18.00%
Loan commitments variable interest rate	8.25%
Minimum
Commitments And Contingencies Liabilities [Line Items]
Loan commitments fixed interest rate	1.25%
Loan commitments variable interest rate	1.25%

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Fair Value Measurement - Summary of Financial Assets and Liabilities Measured at Fair Value on Recurring Basis (Details) - USD ($) $ in Thousands	Sep. 30, 2021	Jun. 30, 2021	Dec. 31, 2020	Sep. 30, 2020	Jun. 30, 2020	Dec. 31, 2019
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Securities available-for-sale, at fair value	$ 1,427,605		$ 1,447,230
Equity and other securities, at fair value	10,299		8,764
Servicing assets, at fair value	23,597	$ 24,683	22,042	$ 21,267	$ 18,351	$ 19,471
Derivative assets	13,463		17,149
Derivative liabilities	12,348		18,133
U.S. Treasury Notes
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Securities available-for-sale, at fair value	8,578		23,812
U.S. Government Agencies
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Securities available-for-sale, at fair value	123,264		113,551
Obligations of States, Municipalities, and Political Subdivisions
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Securities available-for-sale, at fair value	105,060		142,419
Corporate Securities
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Securities available-for-sale, at fair value	66,827		60,768
Asset-Backed Securities
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Securities available-for-sale, at fair value	37,285		45,156
Fair Value, Measurements, Recurring
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Servicing assets, at fair value	23,597		22,042
Derivative assets	13,463		17,149
Derivative liabilities	12,348		18,133
Fair Value, Measurements, Recurring | U.S. Treasury Notes
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Securities available-for-sale, at fair value	8,578		23,812
Fair Value, Measurements, Recurring | U.S. Government Agencies
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Securities available-for-sale, at fair value	123,264		113,551
Fair Value, Measurements, Recurring | Obligations of States, Municipalities, and Political Subdivisions
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Securities available-for-sale, at fair value	105,060		142,419
Fair Value, Measurements, Recurring | Mortgage-Backed Securities; Residential | Agency
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Securities available-for-sale, at fair value	785,173		778,391
Fair Value, Measurements, Recurring | Mortgage-Backed Securities; Residential | Non-Agency
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Securities available-for-sale, at fair value	64,009		32,981
Fair Value, Measurements, Recurring | Mortgage-Backed Securities; Commercial | Agency
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Securities available-for-sale, at fair value	237,409		250,152
Fair Value, Measurements, Recurring | Corporate Securities
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Securities available-for-sale, at fair value	66,827		60,768
Fair Value, Measurements, Recurring | Asset-Backed Securities
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Securities available-for-sale, at fair value	37,285		45,156
Fair Value, Measurements, Recurring | Mutual Funds
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Equity and other securities, at fair value	4,424		2,983
Fair Value, Measurements, Recurring | Equity Securities
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Equity and other securities, at fair value	5,875		5,781
Fair Value, Measurements, Recurring | Level 1 | U.S. Treasury Notes
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Securities available-for-sale, at fair value	8,578		23,812
Fair Value, Measurements, Recurring | Level 1 | Mutual Funds
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Equity and other securities, at fair value	4,424		2,983
Fair Value, Measurements, Recurring | Level 2
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Derivative assets	13,463		17,149
Derivative liabilities	12,348		18,133
Fair Value, Measurements, Recurring | Level 2 | U.S. Government Agencies
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Securities available-for-sale, at fair value	123,264		113,551
Fair Value, Measurements, Recurring | Level 2 | Obligations of States, Municipalities, and Political Subdivisions
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Securities available-for-sale, at fair value	105,060		142,419
Fair Value, Measurements, Recurring | Level 2 | Mortgage-Backed Securities; Residential | Agency
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Securities available-for-sale, at fair value	785,173		778,391
Fair Value, Measurements, Recurring | Level 2 | Mortgage-Backed Securities; Residential | Non-Agency
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Securities available-for-sale, at fair value	64,009		32,981
Fair Value, Measurements, Recurring | Level 2 | Mortgage-Backed Securities; Commercial | Agency
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Securities available-for-sale, at fair value	237,409		250,152
Fair Value, Measurements, Recurring | Level 2 | Corporate Securities
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Securities available-for-sale, at fair value	66,827		60,768
Fair Value, Measurements, Recurring | Level 2 | Asset-Backed Securities
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Securities available-for-sale, at fair value	37,285		45,156
Fair Value, Measurements, Recurring | Level 2 | Equity Securities
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Equity and other securities, at fair value	5,189		5,096
Fair Value, Measurements, Recurring | Level 3
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Servicing assets, at fair value	23,597		22,042
Fair Value, Measurements, Recurring | Level 3 | Equity Securities
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Equity and other securities, at fair value	$ 686		$ 685

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Fair Value Measurement - Additional Information (Details) - USD ($)	Sep. 30, 2021	Sep. 30, 2020
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Abstract]
Fair value, assets, to or from level 3 transfers, amount	$ 0	$ 0
Fair value, liabilities, to or from level 3 transfers, amount	0	0
Fair value, equity, to or from level 3 transfers, amount	$ 0	$ 0

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Fair Value Measurement - Summary of Financial Assets Measured at Fair Value on Recurring Basis Using Significant Unobservable Inputs (Details) - USD ($) $ in Thousands	9 Months Ended
	Sep. 30, 2021	Sep. 30, 2020
Investment Securities
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Balance, beginning of period	$ 685	$ 700
Additions, net	0	0
Change in fair value	1	(16)
Balance, end of period	686	684
Servicing Assets
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Balance, beginning of period	22,042	19,471
Additions, net	5,703	4,449
Change in fair value	(4,148)	(2,653)
Balance, end of period	$ 23,597	$ 21,267

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Fair Value Measurement - Summary of Unobservable Inputs Used in the Fair Value Measurements on Recurring Basis (Details) - Fair Value, Measurements, Recurring - Level 3	9 Months Ended
	Sep. 30, 2021
Single Issuer Trust Preferred
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Impact to Valuation from an Increased or Higher Input Value	Decrease
Debt Instrument, Valuation Technique [Extensible List]	us-gaap:ValuationTechniqueDiscountedCashFlowMember
Single Issuer Trust Preferred | Minimum
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Unobservable Inputs	0.031
Single Issuer Trust Preferred | Maximum
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Unobservable Inputs	0.064
Single Issuer Trust Preferred | Weighted Average
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Unobservable Inputs	0.045
Servicing Assets
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Servicing Asset, Valuation Technique [Extensible List]	us-gaap:ValuationTechniqueDiscountedCashFlowMember
Servicing Assets | Prepayment Speeds
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Impact to Valuation from an Increased or Higher Input Value	Decrease
Servicing Assets | Prepayment Speeds | Minimum
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Unobservable Inputs	0.005
Servicing Assets | Prepayment Speeds | Maximum
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Unobservable Inputs	0.318
Servicing Assets | Prepayment Speeds | Weighted Average
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Unobservable Inputs	0.143
Servicing Assets | Discount Rate
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Impact to Valuation from an Increased or Higher Input Value	Decrease
Servicing Assets | Discount Rate | Minimum
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Unobservable Inputs	0.030
Servicing Assets | Discount Rate | Maximum
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Unobservable Inputs	0.500
Servicing Assets | Discount Rate | Weighted Average
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Unobservable Inputs	0.081
Servicing Assets | Expected Weighted Average Loan life
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Impact to Valuation from an Increased or Higher Input Value	Increase
Servicing Assets | Expected Weighted Average Loan life | Minimum
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Expected weighted average loan life	2 months 12 days
Servicing Assets | Expected Weighted Average Loan life | Maximum
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Expected weighted average loan life	8 years 6 months
Servicing Assets | Expected Weighted Average Loan life | Weighted Average
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Expected weighted average loan life	3 years 10 months 24 days

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Fair Value Measurement - Summary of Assets Measured at Fair Value on Non-Recurring Basis, Excluding Acquired Impaired Loans (Details) - USD ($) $ in Thousands	Sep. 30, 2021	Dec. 31, 2020
Commercial Real Estate
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis Valuation Techniques [Line Items]
Assets, Fair Value	$ 37,143	$ 41,135
Residential Real Estate
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis Valuation Techniques [Line Items]
Assets, Fair Value	3,946	1,752
Commercial and Industrial
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis Valuation Techniques [Line Items]
Assets, Fair Value	21,547	28,508
Other Real Estate Owned
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis Valuation Techniques [Line Items]
Assets, Fair Value	3,033	6,350
Assets Held For Sale
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis Valuation Techniques [Line Items]
Assets, Fair Value	10,982	13,023
Level 3 | Commercial Real Estate
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis Valuation Techniques [Line Items]
Assets, Fair Value	37,143	41,135
Level 3 | Residential Real Estate
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis Valuation Techniques [Line Items]
Assets, Fair Value	3,946	1,752
Level 3 | Commercial and Industrial
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis Valuation Techniques [Line Items]
Assets, Fair Value	21,547	28,508
Level 3 | Other Real Estate Owned
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis Valuation Techniques [Line Items]
Assets, Fair Value	3,033	6,350
Level 3 | Assets Held For Sale
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis Valuation Techniques [Line Items]
Assets, Fair Value	$ 10,982	$ 13,023

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Fair Value Measurement - Summary of Estimated Fair Values of Financial Instruments (Details) - USD ($) $ in Thousands	Sep. 30, 2021	Dec. 31, 2020
Financial assets
Cash and due from banks	$ 46,900	$ 41,432
Interest bearing deposits with other banks	95,978	41,988
Securities held-to-maturity, fair value	4,033	4,573
Restricted stock, at cost	15,927	10,507
Loans held for sale	48,372	7,924
Loans and lease receivables, net (less impaired loans at fair value	4,548,630	4,274,188
Financial liabilities
Paycheck Protection Program Liquidity Facility	156,404	371,907
Federal Home Loan Bank advances	355,000	234,000
Securities sold under agreements to repurchase	27,715	41,994
Subordinated notes, net	73,473	73,342
Junior subordinated debentures issued to capital trusts, net	36,796	36,451
Level 1 | Carrying Amount
Financial assets
Cash and due from banks	46,900	41,432
Level 1 | Estimate of Fair Value Measurement
Financial assets
Cash and due from banks	46,900	41,432
Level 2 | Carrying Amount
Financial assets
Interest bearing deposits with other banks	95,978	41,988
Securities held-to-maturity, fair value	3,887	4,395
Restricted stock, at cost	15,927	10,507
Financial liabilities
Non-interest-bearing deposits	2,117,749	1,762,676
Interest-bearing deposits	3,040,529	2,989,355
Accrued interest payable	1,687	1,478
Paycheck Protection Program Liquidity Facility	156,404	371,907
Federal Home Loan Bank advances	355,000	234,000
Securities sold under agreements to repurchase	27,715	41,994
Subordinated notes, net	73,473	73,342
Level 2 | Estimate of Fair Value Measurement
Financial assets
Interest bearing deposits with other banks	95,978	41,988
Securities held-to-maturity, fair value	4,033	4,573
Restricted stock, at cost	15,927	10,507
Financial liabilities
Non-interest-bearing deposits	2,117,749	1,762,676
Interest-bearing deposits	3,041,101	2,990,735
Accrued interest payable	1,687	1,478
Paycheck Protection Program Liquidity Facility	156,404	371,907
Federal Home Loan Bank advances	355,000	234,000
Securities sold under agreements to repurchase	27,715	41,994
Subordinated notes, net	83,291	76,627
Level 3 | Carrying Amount
Financial assets
Loans held for sale	48,372	7,924
Loans and lease receivables, net (less impaired loans at fair value	4,485,994	4,202,793
Accrued interest receivable	18,857	20,678
Financial liabilities
Junior subordinated debentures issued to capital trusts, net	36,796	36,451
Level 3 | Estimate of Fair Value Measurement
Financial assets
Loans held for sale	54,739	8,848
Loans and lease receivables, net (less impaired loans at fair value	4,478,323	4,205,906
Accrued interest receivable	18,857	20,678
Financial liabilities
Junior subordinated debentures issued to capital trusts, net	$ 40,777	$ 40,543

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Derivative Instruments and Hedge Activities - Summary of Derivative Financial Instruments and Classification on Consolidated Statements of Financial Condition (Details) - USD ($)	Sep. 30, 2021	Dec. 31, 2020
Derivatives Fair Value [Line Items]
Notional Amount	$ 866,486,000	$ 391,847,000
Other Assets	13,463,000	17,149,000
Other Liabilities	(12,348,000)	(18,133,000)
Cash Flow Hedging
Derivatives Fair Value [Line Items]
Notional Amount	400,000,000
Other Assets	1,799,000
Other Liabilities	(192,000)
Other Interest Rate Derivatives
Derivatives Fair Value [Line Items]
Notional Amount	458,698,000
Other Assets	11,664,000
Other Liabilities	(12,148,000)
Derivatives Designated as Hedging Instruments | Interest Rate Swaps | Cash Flow Hedging
Derivatives Fair Value [Line Items]
Notional Amount	400,000,000	0
Other Assets	1,799,000	0
Other Liabilities	192,000	0
Derivatives Not Designated As Hedging Instruments | Other Credit Derivatives
Derivatives Fair Value [Line Items]
Notional Amount	7,788,000	8,437,000
Other Assets	0	0
Other Liabilities	8,000	17,000
Derivatives Not Designated As Hedging Instruments | Other Interest Rate Derivatives
Derivatives Fair Value [Line Items]
Notional Amount	458,698,000	383,410,000
Other Assets	11,664,000	17,149,000
Other Liabilities	$ 12,148,000	$ 18,116,000

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Derivative Instruments and Hedge Activities - Additional Information (Details) - USD ($)	3 Months Ended		9 Months Ended
	Sep. 30, 2021	Sep. 30, 2020	Sep. 30, 2021	Sep. 30, 2020	Dec. 31, 2020
Derivative [Line Items]
Derivative notional amount	$ 866,486,000		$ 866,486,000		$ 391,847,000
Interest recorded	349,000	$ 465,000	1,333,000	$ 2,838,000
Unrealized gain (loss) to be reclassified as an decrease to interest expense during the next twelve months	868,000		868,000
Fair value of derivatives net liability position	12,300,000		12,300,000
Collateral amount posted	9,700,000		9,700,000
Offsetting derivative positions	1,814,000		1,814,000
Interest Rate Swap
Derivative [Line Items]
Interest recorded	29,000	22,000	71,000	64,000
Other Interest Rate Derivatives
Derivative [Line Items]
Derivative notional amount	$ 458,698,000		$ 458,698,000
Weighted average pay rates	4.23%		4.23%
Derivative maturity date, start year			2022-01
Derivative maturity date, end year			2031-09
Derivative instruments transaction fees	$ 134,000	$ 41,000	$ 840,000	$ 700,000
Other Credit Derivatives
Derivative [Line Items]
Derivative notional amount	7,800,000		7,800,000		8,400,000
Cash Flow Hedging
Derivative [Line Items]
Derivative notional amount	$ 400,000,000		$ 400,000,000
Weighted average pay rates	0.98%		0.98%
Designated as Hedging Instrument | Cash Flow Hedging | Interest Rate Swap
Derivative [Line Items]
Derivative notional amount	$ 400,000,000		$ 400,000,000		0
Remaining balance in other comprehensive income	253,000		253,000		$ 304,000
Designated as Hedging Instrument | Cash Flow Hedging | Fixed Interest Rate Swaps Effective in March 2022
Derivative [Line Items]
Derivative notional amount	100,000,000.0		100,000,000.0
Designated as Hedging Instrument | Cash Flow Hedging | Fixed Interest Rate Swaps Effective in September 2022
Derivative [Line Items]
Derivative notional amount	50,000,000.0		50,000,000.0
Designated as Hedging Instrument | Cash Flow Hedging | Fixed Interest Rate Swaps Effective in March 2023
Derivative [Line Items]
Derivative notional amount	200,000,000.0		200,000,000.0
Designated as Hedging Instrument | Cash Flow Hedging | Fixed Interest Rate Swaps Effective in May 2023
Derivative [Line Items]
Derivative notional amount	$ 50,000,000.0		$ 50,000,000.0

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Derivative Instruments and Hedge Activities - Summary of Cash Flow Hedges (Details) - USD ($) $ in Thousands	9 Months Ended
	Sep. 30, 2021	Dec. 31, 2020
Derivative [Line Items]
Notional Amount	$ 866,486	$ 391,847
Gross amounts recognized	13,463	17,149
Derivative liabilities fair value	12,348	$ 18,133
Cash Flow Hedges
Derivative [Line Items]
Notional Amount	400,000
Gross amounts recognized	1,799
Derivative liabilities fair value	$ 192
Weighted average pay rates	0.98%
Weighted average maturity	5 years 2 months 12 days

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Derivative Instruments and Hedge Activities - Summary of Net Gains (Losses) Recorded in Accumulated Other Comprehensive Income (Loss) and Consolidated Statements of Operations (Details) - USD ($) $ in Thousands	3 Months Ended	9 Months Ended
	Sep. 30, 2021	Sep. 30, 2021	Sep. 30, 2020
Derivative [Line Items]
Amount of Loss Recognized in OCI	$ 651	$ 1,606
Interest Rate Swap
Derivative [Line Items]
Amount of Loss Recognized in OCI		1,606
Amount of Loss Reclassified from OCI to Income as an Increase to Interest Expense		(71)	(64)
Amount of Gain (Loss) Recognized in Other Non-Interest Income

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Derivative Instruments and Hedge Activities - Summary of Other Interest Rate Derivatives (Details) - USD ($) $ in Thousands	9 Months Ended
	Sep. 30, 2021	Dec. 31, 2020
Derivative [Line Items]
Notional Amount	$ 866,486	$ 391,847
Gross amounts recognized	13,463	17,149
Derivative liabilities fair value	(12,348)	$ (18,133)
Other Interest Rate Derivatives
Derivative [Line Items]
Notional Amount	458,698
Gross amounts recognized	11,664
Derivative liabilities fair value	$ (12,148)
Weighted average pay rates	4.23%
Weighted average receive rates	3.03%
Weighted average maturity	5 years 7 months 6 days

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Derivative Instruments and Hedge Activities - Summary of Amounts Included in Non-Interest Income in Consolidated Statements of Operations (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2021	Sep. 30, 2020	Sep. 30, 2021	Sep. 30, 2020
Derivative [Line Items]
Amounts relating to derivative instruments, not designated in hedging relationship	$ 100	$ 116	$ 491	$ (635)
Other Credit Derivatives
Derivative [Line Items]
Amounts relating to derivative instruments, not designated in hedging relationship	2	3	9	(8)
Other Interest Rate Derivatives
Derivative [Line Items]
Amounts relating to derivative instruments, not designated in hedging relationship	$ 98	$ 113	$ 482	$ (627)

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Derivative Instruments and Hedge Activities - Summary of Company's Interest Rate Derivative and Offsetting Positions (Details) - USD ($) $ in Thousands	Sep. 30, 2021	Dec. 31, 2020
Derivative Instruments And Hedging Activities Disclosure [Abstract]
Gross amounts recognized	$ 13,463	$ 17,149
Less: Amounts offset in the Consolidated Statements of Financial Condition
Net amount presented in the Consolidated Statements of Financial Condition	13,463	17,149
Gross amounts not offset in the Consolidated Statements of Financial Condition
Offsetting derivative positions	(1,814)
Collateral posted	(11,649)	(17,149)
Net credit exposure
Derivative liabilities fair value	(12,348)	(18,133)
Less: Amounts offset in the Consolidated Statements of Financial Condition
Net amount presented in the Consolidated Statements of Financial Condition	(12,348)	(18,133)
Gross amounts not offset in the Consolidated Statements of Financial Condition
Offsetting derivative positions	1,814
Collateral posted	9,740	18,133
Net credit exposure	$ (794)

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Share-Based Compensation - Additional Information (Details) - USD ($)	1 Months Ended		3 Months Ended							9 Months Ended	12 Months Ended
	Feb. 28, 2021	Oct. 30, 2014	Sep. 30, 2021	Jun. 30, 2021	Mar. 31, 2021	Dec. 31, 2020	Sep. 30, 2020	Jun. 30, 2020	Mar. 31, 2020	Sep. 30, 2021	Dec. 31, 2020	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015	Jun. 30, 2017	Oct. 31, 2014
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Common stock, voting par value			$ 0.01			$ 0.01				$ 0.01	$ 0.01
Unrecognized stock option compensation expenses			$ 0				$ 0			$ 0
Common Stock
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Stock Issued During Period Shares Stock Options Exercised			25,866	11,031	55,908	49,138	165,375	5,196	55,402
Restricted Shares
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Unrecognized stock option compensation expenses			$ 7,840,000				$ 5,566,000			$ 7,840,000
Omnibus Plan
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Number of common stock reserved for issuance															1,550,000
Number of common shares available for future grants			698,331							698,331
Omnibus Plan | Restricted Shares
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Shares of restricted voting common stock granted										308,452
Restricted shares vested										103,187	113,264
Fair value of restricted shares, vested										$ 2,200,000	$ 1,400,000
Fair value of unvested restricted stock awards			$ 14,200							$ 14,200
Omnibus Plan | Restricted Shares | Common Stock
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Shares of restricted voting common stock granted										308,452
Common stock, voting par value			$ 0.01							$ 0.01
Restricted shares vested										130
Omnibus Plan | Restricted Shares | Common Stock | Each Anniversary of Grant Date Over Four Years
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Shares vest on grant date										119,344
Award vesting period										4 years
Omnibus Plan | Restricted Shares | Common Stock | Last Business Day of Grant Vest Over Three Years
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Shares vest on grant date										109,475
Omnibus Plan | Restricted Shares | Common Stock | Each Anniversary of Grant Date Vest Over Three Years
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Shares vest on grant date										38,279
Award vesting period										3 years
Omnibus Plan | Restricted Shares | Common Stock | Third Anniversary of Grant Date
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Shares vest on grant date										9,141
Omnibus Plan | Performance-based Restricted Shares
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Shares of restricted voting common stock granted	32,083									103,187
Period for number of shares earned under return on average assets	3 years
BYB Plan
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Number of common shares available for future grants															0
Number of options granted												0	212,400	1,634,568
Number of shares outstanding			1,344,548			1,390,579				1,344,548	1,390,579
Stock Issued During Period Shares Stock Options Exercised										46,031	19,496
Proceeds from the exercise of stock options										$ 629,000,000	$ 253,000,000
Tax benefit from exercise of stock options										$ 100,000,000	$ 39,000,000
Options vested										0
BYB Plan | Maximum
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Number of common shares available for future grants																2,476,122
BYB Plan | Time Options Grants
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Award contractual term		10 years
BYB Plan | Time Options Grants | Maximum
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Award vesting period		5 years
BYB Plan | Time Options Grants | Minimum
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Award vesting period		1 year
BYB Plan | Performance Options Grants
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Award contractual term		10 years
BYB Plan | Performance Options Grants | Maximum
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Award vesting period		5 years
BYB Plan | Performance Options Grants | Minimum
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Award vesting period		1 year
FEB Plan
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Number of shares outstanding			186,856			233,630				186,856	233,630
Stock Issued During Period Shares Stock Options Exercised										46,774	255,615
Proceeds from the exercise of stock options										$ 540,000,000	$ 2,800,000
Tax benefit from exercise of stock options										$ 87,000,000	$ 219,000,000
Options vested			0							0
Conversion calculation percentage			4.725%							4.725%

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Share-Based Compensation - Summary of Changes in Restricted Shares (Details) - Omnibus Plan - Restricted Shares - $ / shares	9 Months Ended	12 Months Ended
	Sep. 30, 2021	Dec. 31, 2020
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Number of shares, beginning balance	383,539
Number of shares, granted	308,452
Number of shares, vested	(103,187)	(113,264)
Number of shares, forfeited	(9,740)
Number of shares, ending balance	579,064	383,539
Weighted average grant date fair value, beginning balance	$ 18.75
Weighted average grant date fair value, granted	19.38
Weighted average grant date fair value, vested	19.52
Weighted average grant date fair value, forfeited	20.58
Weighted average grant date fair value, ending balance	$ 18.92	$ 18.75

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Share-Based Compensation - Summary of Stock Compensation Expense (Details) - USD ($) $ in Thousands	9 Months Ended
	Sep. 30, 2021	Sep. 30, 2020
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items]
Total share-based compensation (benefit) - stock options	$ 0	$ 7
Income tax benefit (expense)	0	2
Unrecognized compensation expense	$ 0	$ 0
Weighted-average amortization period remaining	0 years	0 years
Restricted Shares
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items]
Total share-based compensation - restricted stock	$ 2,966	$ 2,019
Income tax benefit	826	562
Unrecognized compensation expense	$ 7,840	$ 5,566
Weighted-average amortization period remaining	2 years 4 months 24 days	2 years 4 months 24 days

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Share-Based Compensation - Summary Activity in shares Subjected to Options and Weighted Average Exercise Prices (Details) $ / shares in Units, $ in Thousands	9 Months Ended	12 Months Ended
	Sep. 30, 2021 USD ($) $ / shares shares	Dec. 31, 2020 USD ($) $ / shares shares
BYB Plan
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Number of Shares, Beginning balance	1,390,579
Number of Shares, Exercised	(46,031)	(19,496)
Number of Shares, Expired	0
Number of Shares, Ending balance	1,344,548	1,390,579
Number of Shares, Exercisable	1,344,548
Weighted Average Exercise Price, Beginning balance | $ / shares	$ 11.36
Weighted Average Exercise Price, Exercised | $ / shares	13.66
Weighted Average Exercise Price, Ending balance | $ / shares	11.28	$ 11.36
Weighted Average Exercise Price, Exercisable | $ / shares	$ 11.28
Intrinsic Value, Beginning balance | $	$ 5,724
Intrinsic Value, Exercised | $	359
Intrinsic Value, Ending balance | $	17,851	$ 5,724
Intrinsic Value, Exercisable | $	$ 17,851
Weighted Average Remaining Contractual Term (in Years)	3 years 8 months 12 days	4 years 4 months 24 days
Weighted Average Remaining Contractual Term (in Years), Exercisable	3 years 8 months 12 days
FEB Plan
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Number of Shares, Beginning balance	233,630
Number of Shares, Exercised	(46,774)	(255,615)
Number of Shares, Expired	0
Number of Shares, Ending balance	186,856	233,630
Number of Shares, Exercisable	186,856
Weighted Average Exercise Price, Beginning balance | $ / shares	$ 11.52
Weighted Average Exercise Price, Exercised | $ / shares	11.55
Weighted Average Exercise Price, Ending balance | $ / shares	11.52	$ 11.52
Weighted Average Exercise Price, Exercisable | $ / shares	$ 11.52
Intrinsic Value, Beginning balance | $	$ 918
Intrinsic Value, Exercised | $	313
Intrinsic Value, Ending balance | $	2,437	$ 918
Intrinsic Value, Exercisable | $	$ 2,437
Weighted Average Remaining Contractual Term (in Years)	3 years 3 months 18 days	3 years 3 months 18 days
Weighted Average Remaining Contractual Term (in Years), Exercisable	3 years 3 months 18 days

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Earnings per Share - Additional Information (Details) - shares	3 Months Ended		9 Months Ended
	Sep. 30, 2021	Sep. 30, 2020	Sep. 30, 2021	Sep. 30, 2020
Earnings Per Share Basic [Line Items]
Shares outstanding	37,200,778	38,057,350	37,773,350	37,973,694
Common Stock
Earnings Per Share Basic [Line Items]
Shares outstanding			1,531,404	1,676,371
Restricted Stock Award
Earnings Per Share Basic [Line Items]
Shares outstanding			579,064	392,439
Stock Options
Earnings Per Share Basic [Line Items]
Shares outstanding	0	105,657	0	50,000

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Earnings per Share - Schedule of Calculation of Basic and Diluted Earnings per Share (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended							6 Months Ended	9 Months Ended
	Sep. 30, 2021	Jun. 30, 2021	Mar. 31, 2021	Dec. 31, 2020	Sep. 30, 2020	Jun. 30, 2020	Mar. 31, 2020	Jun. 30, 2021	Sep. 30, 2021	Sep. 30, 2020
Earnings Per Share [Abstract]
Net income	$ 25,306	$ 28,492	$ 21,798	$ 12,291	$ 13,071	$ 9,139	$ 2,966		$ 75,596	$ 25,176
Dividends on preferred shares	196				196				587	587
INCOME AVAILABLE TO COMMON STOCKHOLDERS	$ 25,110				$ 12,875				$ 75,009	$ 24,589
Weighted-average common stock outstanding:
Weighted-average common stock outstanding (basic)	37,200,778				38,057,350				37,773,350	37,973,694
Incremental shares	817,523				191,985				749,762	278,269
Weighted-average common stock outstanding (dilutive)	38,018,301				38,249,335				38,523,112	38,251,963
Basic earnings per common share	$ 0.68				$ 0.34				$ 1.99	$ 0.65
Diluted earnings per common share	$ 0.66				$ 0.34			$ 1.95	$ 1.95	$ 0.64

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Stockholders' Equity - Summary of Preferred and Common Stock (Details) - $ / shares	Sep. 30, 2021	Dec. 31, 2020
Class Of Stock [Line Items]
Shares authorized	50,000	50,000
Shares issued	10,438	10,438
Shares outstanding	10,438	10,438
Common stock, voting par value	$ 0.01	$ 0.01
Common stock, voting shares authorized	150,000,000	150,000,000
Common stock, voting shares issued	39,170,541	38,736,540
Shares outstanding	37,690,087	38,618,054
Treasury common shares	1,480,454	118,486
Series B 7.5% Fixed to Floating Non-Cumulative Perpetual Preferred Stock
Class Of Stock [Line Items]
Par value	$ 0.01	$ 0.01
Shares authorized	50,000	50,000
Shares issued	10,438	10,438
Shares outstanding	10,438	10,438

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Stockholders' Equity - Summary of Preferred and Common Stock (Parenthetical) (Details)	9 Months Ended	12 Months Ended
	Sep. 30, 2021	Dec. 31, 2020
Series B 7.5% Fixed to Floating Non-Cumulative Perpetual Preferred Stock
Class Of Stock [Line Items]
Preferred stock, dividend rate, percentage	7.50%	7.50%

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Stockholders' Equity - Additional Information (Details) - USD ($)		3 Months Ended					9 Months Ended		12 Months Ended
	Oct. 26, 2021	Sep. 30, 2021	Jun. 30, 2021	Mar. 31, 2021	Sep. 30, 2020	Mar. 31, 2020	Sep. 30, 2021	Sep. 30, 2020	Dec. 31, 2016	Jul. 27, 2021	Dec. 10, 2020
Class Of Stock [Line Items]
Dividends declared and paid							$ 587,000	$ 587,000
Aggregate number of shares authorized to repurchase										1,250,000	1,250,000
Approximate percentage of shares authorized to be repurchased		3.00%					3.00%
Number of shares purchased		460,220					1,331,708
Value of shares purchased		$ 10,411,000	$ 12,093,000	$ 6,363,000		$ 1,668,000	$ 28,900,000
Common stock, cash dividends paid		$ 0.09			$ 0.03		$ 0.21	$ 0.09
Series B Preferred Stock
Class Of Stock [Line Items]
Preferred stock, dividend rate, percentage									7.50%
Preferred stock fixed dividend close date									Dec. 30, 2021
Dividends declared and paid		$ 196,000			$ 196,000		$ 587,000	$ 587,000
Series B Preferred Stock | Three-month LIBOR
Class Of Stock [Line Items]
Preferred stock, dividend rate, percentage									5.41%
Subsequent Event
Class Of Stock [Line Items]
Cash dividend declared	$ 0.09
Dividend payable date	Nov. 23, 2021
Dividends record date	Nov. 09, 2021
Cash dividend declared	$ 0.09

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Consolidated Statements of Change in Accumulated Other Comprehensive Income (Loss) - Schedule of Consolidated Statements of Changes in Accumulated Other Comprehensive Income (Loss) (Details) - USD ($) $ in Thousands	3 Months Ended							9 Months Ended
	Sep. 30, 2021	Jun. 30, 2021	Mar. 31, 2021	Dec. 31, 2020	Sep. 30, 2020	Jun. 30, 2020	Mar. 31, 2020	Sep. 30, 2021	Sep. 30, 2020
Accumulated Other Comprehensive Income Loss [Line Items]
Beginning balance	$ 817,073	$ 793,795	$ 805,464	$ 794,696	$ 780,935	$ 762,667	$ 750,115	$ 805,464	$ 750,115
Other comprehensive income (loss), net of tax	(5,691)	8,524	(26,394)	(1,277)	(709)	9,685	11,048	(23,561)	20,024
Ending balance	824,418	817,073	793,795	805,464	794,696	780,935	762,667	824,418	794,696
Unrealized Gains (Losses) on Cash Flow Hedges
Accumulated Other Comprehensive Income Loss [Line Items]
Beginning balance			(305)	(320)			(366)	(305)	(366)
Other comprehensive income (loss), net of tax								1,211	46
Ending balance	906			(305)	(320)			906	(320)
Unrealized Gains (Losses) on Available-for-Sale Securities
Accumulated Other Comprehensive Income Loss [Line Items]
Beginning balance			18,352	19,644			(334)	18,352	(334)
Other comprehensive income (loss), net of tax								(24,772)	19,978
Ending balance	(6,420)			18,352	19,644			(6,420)	19,644
Accumulated Other Comprehensive Income (Loss)
Accumulated Other Comprehensive Income Loss [Line Items]
Beginning balance	177	(8,347)	18,047	19,324	20,033	10,348	(700)	18,047	(700)
Other comprehensive income (loss), net of tax	(5,691)	8,524	(26,394)	(1,277)	(709)	9,685	11,048	(23,561)	20,024
Ending balance	$ (5,514)	$ 177	$ (8,347)	$ 18,047	$ 19,324	$ 20,033	$ 10,348	$ (5,514)	$ 19,324