0001564590-21-003080.txt : 20210128 0001564590-21-003080.hdr.sgml : 20210128 20210128165832 ACCESSION NUMBER: 0001564590-21-003080 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 14 CONFORMED PERIOD OF REPORT: 20210128 ITEM INFORMATION: Results of Operations and Financial Condition ITEM INFORMATION: Departure of Directors or Certain Officers; Election of Directors; Appointment of Certain Officers: Compensatory Arrangements of Certain Officers ITEM INFORMATION: Financial Statements and Exhibits FILED AS OF DATE: 20210128 DATE AS OF CHANGE: 20210128 FILER: COMPANY DATA: COMPANY CONFORMED NAME: BYLINE BANCORP, INC. CENTRAL INDEX KEY: 0001702750 STANDARD INDUSTRIAL CLASSIFICATION: STATE COMMERCIAL BANKS [6022] IRS NUMBER: 363012593 FILING VALUES: FORM TYPE: 8-K SEC ACT: 1934 Act SEC FILE NUMBER: 001-38139 FILM NUMBER: 21566038 BUSINESS ADDRESS: BUSINESS PHONE: 773-244-7000 MAIL ADDRESS: STREET 1: 180 NORTH LASALLE STREET, SUITE 300 CITY: CHICAGO STATE: IL ZIP: 60601 8-K 1 by-8k_20210128.htm 4Q20 ER 8-K by-8k_20210128.htm
false 0001702750 0001702750 2021-01-28 2021-01-28

 

 

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

 

FORM 8-K

 

CURRENT REPORT

PURSUANT TO SECTION 13 OR 15(d)

OF THE SECURITIES EXCHANGE ACT OF 1934

Date of Report (Date of earliest event reported): January 28, 2021

 

BYLINE BANCORP, INC.

(Exact Name of Registrant as Specified in Its Charter)

 

Delaware

(State or Other Jurisdiction

of Incorporation)

 

 

 

 

001-38139

 

36-3012593

(Commission

File Number)

 

(I.R.S. Employer

Identification No.)

 

 

180 North LaSalle Street, Suite 300

 

 

Chicago, Illinois

 

60601

(Address of Principal Executive Offices)

 

(Zip Code)

(773) 244-7000

(Registrant’s Telephone Number, Including Area Code)

Not Applicable

(Former Name or Former Address, if Changed Since Last Report)

 

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):

 

Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

 

Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

 

Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

 

Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

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

Title of each class

Trading Symbol(s)

Name of each exchange on which registered

Common Stock

BY

New York Stock Exchange

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).

Emerging growth company 

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.  

 


 

 

 

Item 2.02.

 

Results of Operations and Financial Condition.

 

 

On January 28, 2021, the Company issued a press release announcing its financial results for the fourth quarter ended December 31, 2020. A copy of the press release is attached as Exhibit 99.1 and is incorporated herein by reference.

The information included under this Item 2.02 of Form 8-K and the attached exhibit 99.1 are being furnished and shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended, nor shall it be deemed incorporated by reference in any filing under the Securities Act of 1933, as amended, except as shall be expressly set forth by specific reference in any such filing.

 

  Item 5.02.    Departure of Directors or Certain Officers; Election of Directors; Appointment of Certain Officers; Compensatory    Arrangements of Certain Officers.

 

On January 28, 2021, the Board of Directors of the Company (the “Board”) approved certain changes to the Company’s management team. Effective February 12, 2021, Mr. Roberto R. Herencia, Chairman of the Board of the Company and Byline Bank, will become executive Chairman and assume the additional role of Chief Executive Officer of the Company. Mr. Alberto J. Paracchini will continue in his current roles as President and Chief Executive Officer and a director of Byline Bank, and as President and a director of the Company. The changes are intended to accelerate and support the execution of the Company’s strategic plan, specifically its growth strategy, as a leading commercial banking franchise in the Chicago MSA.

Information regarding any material changes to Mr. Herencia’s compensation in connection with his assumption of the additional role of Chief Executive Officer of the Company will be disclosed in an amendment to this Current Report on Form 8-K when available.

 

Item 9.01.

Financial Statements and Exhibits.

 

 

(d) Exhibits.

 

 

 

 

 

Exhibit

No.

 

Description

 

 

99.1

 

Fourth Quarter 2020 Financial Results Press Release, dated January 28, 2021

104

 

Cover Page Interactive Data File (embedded within the Inline XBRL document)

 

 

Forward-Looking Statements

This communication contains forward-looking statements within the meaning of the U.S. federal securities laws. Forward-looking statements include, without limitation, statements concerning plans, estimates, calculations, forecasts and projections with respect to the anticipated future performance of the Company. These statements are often, but not always, made through the use of words or phrases such as ‘‘may’’, ‘‘might’’, ‘‘should’’, ‘‘could’’, ‘‘predict’’, ‘‘potential’’, ‘‘believe’’, ‘‘expect’’, ‘‘continue’’, ‘‘will’’, ‘‘anticipate’’, ‘‘seek’’, ‘‘estimate’’, ‘‘intend’’, ‘‘plan’’, ‘‘projection’’, ‘‘would’’, ‘‘annualized’’, “target” and ‘‘outlook’’, or the negative version of those words or other comparable words or phrases of a future or forward-looking nature. Forward-looking statements involve estimates and known and unknown risks, and reflect various assumptions and involve elements of subjective judgement and analysis, which may or may not prove to be correct, and which are subject to uncertainties and contingencies outside the control of Byline and its respective affiliates, directors, employees and other representatives, which could cause actual results to differ materially from those presented in this communication.

 

The COVID-19 pandemic is adversely affecting us, our employees, customers, counterparties and third-party service providers, and the ultimate extent of the impacts on our business, financial position, results of operations, liquidity, and prospects is uncertain. Continued deterioration in general business and economic conditions, including further increases in unemployment rates, or turbulence in U.S. or global financial markets could adversely affect our revenues and the values of our assets and liabilities, reduce the availability of funding, lead to a tightening of credit, and further increase stock price volatility. In addition, changes to statutes, regulations, or regulatory policies or practices as a result of, or in response to COVID-19, could affect us in substantial and unpredictable ways.

 

No representations, warranties or guarantees are or will be made by Byline as to the reliability, accuracy or completeness of any forward-looking statements contained in this communication or that such forward-looking statements are or will remain based on reasonable assumptions. You should not place undue reliance on any forward-looking statements contained in this communication.

 

Certain risks and important factors that could affect Byline’s future results are identified in its Annual Report on Form 10-K and other reports filed with the Securities and Exchange Commission, including among other things under the heading “Risk Factors” in its Annual Report on Form 10-K for the year ended December 31, 2019, its Quarterly Report on Form 10-Q for the quarter ended March 31, 2020, and its Quarterly Report on Form 10-Q for the quarter ended June 30, 2020.  Any forward-looking statement speaks only as of the date on which it is made, and Byline undertakes no obligation to update any forward-looking statement, whether to reflect events or circumstances after the date on which the

2


statement is made, to reflect new information or the occurrence of unanticipated events, or otherwise unless required under the federal securities laws.


3


 

 

SIGNATURE

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

 

 

 

 

 

 

 

 

 

 

 

 

BYLINE BANCORP, INC.

 

 

 

 

Date: January 28, 2021

 

 

 

By:

/s/ Alberto J. Paracchini

 

 

 

 

Name:

Alberto J. Paracchini

 

 

 

 

Title:

President and Chief Executive Officer

 

4

EX-99.1 2 by-ex991_6.htm EX-99.1 by-ex991_6.htm

Byline Bancorp, Inc.

Page 1 of 22

 

                                      

 

Byline Bancorp, Inc. Reports Full Year and Fourth Quarter 2020 Financial Results

Select Full Year 2020 Highlights

 

Net income of $37.5 million, or $0.96 per diluted share

 

Net interest margin of 3.80%

 

Pre-tax pre-provision return on average assets1 of 1.75%, as adjusted1 1.83%

 

Efficiency ratio of 58.40%

 

Originated loans and leases increased $832.8 million

 

Non-interest-bearing deposits increased $483.0 million or 37.7%

 

Top SBA lender for Illinois and Wisconsin for seven consecutive years

Select Fourth Quarter 2020 Highlights

 

Net income of $12.3 million, or $0.31 per diluted share

 

Net interest margin of 3.77%

 

Pre-tax pre-provision return on average assets1 of 1.66%, as adjusted1 1.91%

 

Efficiency ratio of 61.22%

 

Originated loans and leases increased $31.9 million, total production of $230.5 million

 

Common Equity Tier 1 to risk weighted assets of 12.20%

Chicago, IL, January 28, 2021 – Byline Bancorp, Inc. (the “Company” or “Byline”)(NYSE: BY), the parent company of Byline Bank (the “Bank”), today reported net income of $12.3 million, or $0.31 per diluted share, for the fourth quarter of 2020, compared with net income of $13.1 million, or $0.34 per diluted share, for the third quarter of 2020. The Company's financial results for 2020 include impairment charges on assets held for sale.  Excluding these charges, adjusted net income1 was $15.2 million, or $0.38 per adjusted diluted share, for the fourth quarter of 2020, compared with $13.1 million, or $0.34 per adjusted diluted share1, for the third quarter of 2020.

Alberto J. Paracchini, President and Chief Executive Officer of Byline, commented, “We continued to see an improvement in business activity during the fourth quarter, resulting in an increase in loan and lease growth excluding runoff of PPP loans, strong inflows of commercial noninterest-bearing deposits, and higher net interest income.  Combined with our continued expense discipline, we produced a strong quarter of earnings and pre-tax, pre-provision income.  Importantly, asset quality remains strong as we saw a decline in non-performing assets during the quarter, although we remain conservative with respect to our reserves and further increased our allowance to 1.53% of total loans.

“Since the recap in 2013, we have consistently executed well on our strategies to enhance the value of the Byline franchise and we believe we are well positioned to deliver another strong year in 2021.  Our loan pipeline continues to build as the banking teams we added over the past two years gain traction and overall loan demand improves.  With a more efficient and productive retail branch network following our recent branch consolidations, we believe that we can effectively manage expenses and realize more operating leverage as we continue to grow our balance sheet.  We believe that the actions we have taken to enhance efficiencies combined with the investments we have made to improve our ability to serve existing customers and attract new customers to Byline will continue to result in a higher level of earnings and profitability in the years to come.  Given our strong financial performance and healthy outlook, we are well positioned to increase the amount of capital that we return to shareholders through our quarterly dividend, doubling to $0.06 per share, along with the resumption on our stock repurchase program as market conditions permit,” said Mr. Paracchini.

 


Byline Bancorp, Inc.

Page 2 of 22

 

On January 28, 2021, the Board approved the appointment of the Company’s Chairman, Roberto R. Herencia, as executive Chairman and Chief Executive Officer of Byline Bancorp, Inc., effective February 12, 2021.  Alberto J. Paracchini will continue in his role as President of Byline Bancorp, Inc.  Mr. Paracchini will also continue in his role as President and Chief Executive Officer of Byline Bank, reporting directly to Mr. Herencia, and remains a director of Byline Bancorp, Inc. and Byline Bank.  Mr. Herencia is a founder of the Company and has been Chairman of the Board since 2013. In his role as non-executive Chairman, he has been closely involved with overseeing management execution of the Company’s long-term strategy.

The changes are intended to accelerate and support the execution of the Company’s strategic plan, specifically its growth strategy, as a leading commercial bank in the Chicago MSA.

"Having Roberto and Alberto work together in this capacity doubles up on their considerable talents and close relationship for the benefit of the Company,” said Antonio Del Valle Perochena, director and chair of the Governance and Nominating Committee of Byline Bancorp and Byline Bank.  “I welcome the continued support and close collaboration with Roberto, as we work to accelerate our growth strategy,” said Alberto Paracchini.  “Alberto and I have worked together for almost 30 years and I am delighted to continue to do so,” added Herencia.

Board Declares Cash Dividend of $0.06 per Share

On January 26, 2021, the Company’s Board of Directors declared a cash dividend of $0.06 per share, payable on February 23, 2021, to stockholders of record of the Company’s common stock as of February 9, 2021.

Fourth Quarter 2020 Updates

Branch Update

On December 31, 2020, as previously announced, we closed 11 branches. The branch consolidations

resulted in one‐time charges of approximately $6.2 million, of which $5.1 million was recorded during

the fourth quarter of 2020 related to premises and equipment.

Byline Bank currently operates 46 branch locations: 45 located in the Chicagoland area and one in the Milwaukee area.  In response to COVID-19 safety concerns, 22 branches are operating as drive-thru only locations and 24 branches are offering full lobby service. 

Paycheck Protection Program (PPP)

As of December 31, 2020, over $366.9 million of PPP loans were in various stages of the SBA forgiveness process, with over $110.1 million approved for forgiveness by the SBA. Byline Bank began accepting applications for the second round of PPP financing on January 11, 2021 and on January 19, 2021, the SBA opened its portal for all participating lenders to submit PPP applications. As of January 26, 2021, we have received over 1,900 applications and approved the funding of $166.1 million.

The following table presents the net PPP loans outstanding as of December 31, 2020:

 

 

PPP Loan Size

 

 

 

 

 

 

 

 

 

 

 

$150,001 -

 

 

 

 

 

 

 

 

 

(dollars in thousands)

 

$0 - $50,000

 

 

$50,001 - $150,000

 

 

 

$2,000,000

 

 

Over $2,000,000

 

 

Total

 

Principal outstanding

 

$

29,003

 

 

$

67,338

 

 

$

346,063

 

 

$

84,640

 

 

$

527,044

 

Unearned processing fee

 

 

(1,009

)

 

 

(2,270

)

 

 

(8,517

)

 

 

(537

)

 

 

(12,333

)

Deferred cost

 

 

1,519

 

 

 

787

 

 

 

772

 

 

 

26

 

 

 

3,104

 

PPP loans, net

 

$

29,513

 

 

$

65,855

 

 

$

338,318

 

 

$

84,129

 

 

$

517,815

 

Number of loans

 

 

1,538

 

 

 

820

 

 

 

803

 

 

 

27

 

 

 

3,188

 

Loan and Lease Deferrals

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. Under the CARES

 


Byline Bancorp, Inc.

Page 3 of 22

 

Act the SBA was authorized to pay principal and interest on covered 7(a) loans.  Beginning in the fourth quarter, this payment subsidy expired for some borrowers, and we began offering payment deferrals on SBA 7(a) loans. Under the Economic Aid Act enacted on December 27, 2020, the SBA will again make payments on covered loans for three months beginning with the first payment due on the loan on or after February 1, 2021. We estimate that approximately 95% of our active government guaranteed deferrals as of December 31, 2020 will receive this subsidy. Certain borrowers in the most impacted industries, including accommodation and food service, will receive three months plus an addition five months of principal and interest payments.  We estimate that approximately 60% of our active government guaranteed deferrals as of December 31, 2020 will receive this additional five months of subsidy.

The following table shows active deferrals by category at the dates indicated (dollars in thousands):

 

 

Active Deferrals

 

 

 

As of December 31, 2020

 

 

As of September 30, 2020

 

 

December 31, 2020 Change from September 30, 2020

 

 

 

Count

 

 

Amount

 

 

Percentage of Total Loans and Leases(2)

 

 

Count

 

 

Amount

 

 

Percentage of Total Loans and Leases(2)

 

 

Count

 

 

Amount

 

Commercial Banking

 

 

21

 

 

$

22,905

 

 

 

0.60

%

 

 

19

 

 

$

23,027

 

 

 

0.61

%

 

 

2

 

 

$

(122

)

Consumer Loans

 

 

2

 

 

 

703

 

 

 

0.02

%

 

 

11

 

 

 

1,945

 

 

 

0.05

%

 

 

(9

)

 

$

(1,242

)

Leasing

 

 

30

 

 

 

1,528

 

 

 

0.04

%

 

 

46

 

 

 

1,829

 

 

 

0.03

%

 

 

(16

)

 

$

(301

)

Government Guaranteed Lending

 

 

262

 

 

 

75,444

 

 

 

1.97

%

 

 

3

 

 

 

1,141

 

 

 

0.05

%

 

 

259

 

 

$

74,303

 

Total

 

 

315

 

 

$

100,580

 

 

 

2.63

%

 

 

79

 

 

$

27,942

 

 

 

0.74

%

 

 

236

 

 

 

72,638

 

 

STATEMENTS OF OPERATIONS

Net Interest Income

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

 

 

Three Months Ended

 

 

December 31, 2020

Percentage Change from

 

 

 

December 31,

 

 

September 30,

 

 

December 31,

 

 

September 30,

 

 

December 31,

 

(dollars in thousands)

 

2020

 

 

2020

 

 

2019

 

 

2020

 

 

2019

 

INTEREST AND DIVIDEND INCOME

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest and fees on loans and leases

 

$

53,441

 

 

$

51,036

 

 

$

58,203

 

 

 

4.7

%

 

 

(8.2

)%

Interest on securities

 

 

6,252

 

 

 

7,070

 

 

 

7,212

 

 

 

(11.6

)%

 

 

(13.3

)%

Other interest and dividend income

 

 

232

 

 

 

128

 

 

 

500

 

 

 

82.4

%

 

 

(53.5

)%

Total interest and dividend income

 

 

59,925

 

 

 

58,234

 

 

 

65,915

 

 

 

2.9

%

 

 

(9.1

)%

INTEREST EXPENSE

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Deposits

 

 

1,814

 

 

 

2,760

 

 

 

9,325

 

 

 

(34.3

)%

 

 

(80.6

)%

Other borrowings

 

 

480

 

 

 

465

 

 

 

1,989

 

 

 

3.3

%

 

 

(75.9

)%

Subordinated notes and debentures

 

 

1,611

 

 

 

1,485

 

 

 

687

 

 

 

8.5

%

 

 

134.6

%

Total interest expense

 

 

3,905

 

 

 

4,710

 

 

 

12,001

 

 

 

(17.1

)%

 

 

(67.5

)%

Net interest income

 

$

56,020

 

 

$

53,524

 

 

$

53,914

 

 

 

4.7

%

 

 

3.9

%

 

 

 


Byline Bancorp, Inc.

Page 4 of 22

 

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

 

 

For the Three Months Ended

 

 

 

December 31, 2020

 

 

September 30, 2020

 

(dollars in thousands)

 

Average

Balance(5)

 

 

Interest

Inc / Exp

 

 

Average

Yield /

Rate

 

 

Average

Balance(5)

 

 

Interest

Inc / Exp

 

 

Average

Yield /

Rate

 

ASSETS

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cash and cash equivalents

 

$

39,500

 

 

$

21

 

 

 

0.22

%

 

$

48,678

 

 

$

25

 

 

 

0.20

%

Loans and leases(1)

 

 

4,340,388

 

 

 

53,441

 

 

 

4.90

%

 

 

4,360,203

 

 

 

51,036

 

 

 

4.66

%

Taxable securities

 

 

1,364,980

 

 

 

5,555

 

 

 

1.62

%

 

 

1,364,516

 

 

 

6,341

 

 

 

1.85

%

Tax-exempt securities(2)

 

 

168,878

 

 

 

1,148

 

 

 

2.71

%

 

 

143,157

 

 

 

1,054

 

 

 

2.93

%

Total interest-earning assets

 

$

5,913,746

 

 

$

60,165

 

 

 

4.05

%

 

$

5,916,554

 

 

$

58,456

 

 

 

3.93

%

Allowance for loan and lease losses

 

 

(63,891

)

 

 

 

 

 

 

 

 

 

 

(53,964

)

 

 

 

 

 

 

 

 

All other assets

 

 

550,766

 

 

 

 

 

 

 

 

 

 

 

538,700

 

 

 

 

 

 

 

 

 

TOTAL ASSETS

 

$

6,400,621

 

 

 

 

 

 

 

 

 

 

$

6,401,290

 

 

 

 

 

 

 

 

 

LIABILITIES AND STOCKHOLDERS’

   EQUITY

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Deposits

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest checking

 

$

578,520

 

 

$

287

 

 

 

0.20

%

 

$

565,917

 

 

$

226

 

 

 

0.16

%

Money market accounts

 

 

1,152,012

 

 

 

444

 

 

 

0.15

%

 

 

1,202,016

 

 

 

634

 

 

 

0.21

%

Savings

 

 

554,633

 

 

 

66

 

 

 

0.05

%

 

 

535,396

 

 

 

64

 

 

 

0.05

%

Time deposits

 

 

802,409

 

 

 

1,017

 

 

 

0.50

%

 

 

870,227

 

 

 

1,836

 

 

 

0.84

%

Total interest-bearing

   deposits

 

 

3,087,574

 

 

 

1,814

 

 

 

0.23

%

 

 

3,173,556

 

 

 

2,760

 

 

 

0.35

%

Other borrowings

 

 

577,309

 

 

 

480

 

 

 

0.33

%

 

 

538,237

 

 

 

465

 

 

 

0.34

%

Subordinated notes and debentures

 

 

109,704

 

 

 

1,611

 

 

 

5.84

%

 

 

100,756

 

 

 

1,485

 

 

 

5.86

%

Total borrowings

 

 

687,013

 

 

 

2,091

 

 

 

1.21

%

 

 

638,993

 

 

 

1,950

 

 

 

1.21

%

Total interest-bearing liabilities

 

$

3,774,587

 

 

$

3,905

 

 

 

0.41

%

 

$

3,812,549

 

 

$

4,710

 

 

 

0.49

%

Non-interest-bearing demand deposits

 

 

1,761,902

 

 

 

 

 

 

 

 

 

 

 

1,742,787

 

 

 

 

 

 

 

 

 

Other liabilities

 

 

58,539

 

 

 

 

 

 

 

 

 

 

 

54,843

 

 

 

 

 

 

 

 

 

Total stockholders’ equity

 

 

805,593

 

 

 

 

 

 

 

 

 

 

 

791,111

 

 

 

 

 

 

 

 

 

TOTAL LIABILITIES AND

   STOCKHOLDERS’ EQUITY

 

$

6,400,621

 

 

 

 

 

 

 

 

 

 

$

6,401,290

 

 

 

 

 

 

 

 

 

Net interest spread(3)

 

 

 

 

 

 

 

 

 

 

3.64

%

 

 

 

 

 

 

 

 

 

 

3.44

%

Net interest income, fully taxable equivalent

 

 

 

 

 

$

56,260

 

 

 

 

 

 

 

 

 

 

$

53,746

 

 

 

 

 

Net interest margin, fully taxable equivalent(2)(4)

 

 

 

 

 

 

 

 

 

 

3.78

%

 

 

 

 

 

 

 

 

 

 

3.61

%

Tax-equivalent adjustment

 

 

 

 

 

 

(240

)

 

 

0.01

%

 

 

 

 

 

 

(222

)

 

 

0.01

%

Net interest income

 

 

 

 

 

$

56,020

 

 

 

 

 

 

 

 

 

 

$

53,524

 

 

 

 

 

Net interest margin(4)

 

 

 

 

 

 

 

 

 

 

3.77

%

 

 

 

 

 

 

 

 

 

 

3.60

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net loan accretion impact on margin

 

 

 

 

 

$

2,304

 

 

 

0.16

%

 

 

 

 

 

$

3,911

 

 

 

0.26

%

 

 

(1)

Loan and lease balances are net of deferred origination fees and costs and initial indirect costs.  Non-accrual loans and leases are included in total loan and lease balances.

 

(2)

Interest income and rates include the effects of a tax equivalent adjustment to adjust tax exempt investment income on tax exempt investment securities to a fully taxable basis, assuming a federal income tax rate of 21%.

 

(3)

Represents the average rate earned on interest-earning assets minus the average rate paid on interest-bearing liabilities.

 

(4)

Represents net interest income (annualized) divided by total average earning assets.

 

(5)

Average balances are average daily balances.

 


 

 


Byline Bancorp, Inc.

Page 5 of 22

 

Net interest income for the fourth quarter of 2020 was $56.0 million, an increase of $2.5 million, or 4.7%, from the third quarter of 2020.

The increase in net interest income was primarily due to:

 

An increase of $2.4 million in interest income on loans and leases, due to the recognition of net fee income related to PPP loan forgiveness; and

 

A decrease of $946,000 in interest expense on deposits, due to maturities of higher-rate time deposits and lower rates paid on money market accounts;

Partially offset by:

 

A decrease of $818,000 in interest income on securities, due to elevated prepayment speeds

and runoff of higher yielding securities resulting in lower yields.

Tax-equivalent net interest margin for the fourth quarter of 2020 was 3.78%, an increase of 17 basis points compared to 3.61% for the third quarter of 2020. Total net accretion income on acquired loans contributed 16 basis points to the net interest margin for the fourth quarter of 2020 compared to 26 basis points for the third quarter of 2020, a decrease of 10 basis points. PPP interest and net fees combined were $5.5 million, for the fourth quarter 2020 compared to $3.5 million for the third quarter 2020.

The average cost of total deposits was 0.15% for the fourth quarter of 2020, a decrease of seven basis points compared to the third quarter of 2020, mainly due to a lower average cost of time deposits and money market accounts, as well as a favorable change in deposit mix. Average non-interest-bearing demand deposits increased $19.1 million, while average time deposits decreased by $67.8 million.  Average non-interest-bearing demand deposits were 36.3% of average total deposits for the fourth quarter of 2020 compared to 35.4% the third quarter of 2020.

Provision for Loan and Lease Losses

The provision for loan and lease losses was $10.2 million for the fourth quarter of 2020, a decrease of $5.5 million compared to $15.7 million for the third quarter of 2020.  The fourth quarter included allocations of $5.4 million for originated loans and leases, $1.4 million for acquired impaired loans, and $3.4 million for acquired non-impaired loans. The provision during the fourth quarter of 2020 included net specific impairments of $5.0 million primarily driven by the unguaranteed portion of government guaranteed loans.


 


Byline Bancorp, Inc.

Page 6 of 22

 

Non-interest Income

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

 

 

Three Months Ended

 

 

December 31, 2020

Change from

 

 

 

December 31,

 

 

September 30,

 

 

December 31,

 

 

September 30,

 

 

December 31,

 

(dollars in thousands)

 

2020

 

 

2020

 

 

2019

 

 

2020

 

 

2019

 

NON-INTEREST INCOME

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Fees and service charges on deposits

 

$

1,740

 

 

$

1,603

 

 

$

1,635

 

 

 

8.5

%

 

 

6.3

%

Loan servicing revenue

 

 

2,645

 

 

 

2,936

 

 

 

2,834

 

 

 

(9.9

)%

 

 

(6.7

)%

Loan servicing asset revaluation

 

 

(2,298

)

 

 

1,122

 

 

 

(2,545

)

 

 

(304.7

)%

 

 

(9.7

)%

ATM and interchange fees

 

 

1,076

 

 

 

1,028

 

 

 

1,150

 

 

 

4.7

%

 

 

(6.4

)%

Net gains on sales of securities available-for-sale

 

 

2,889

 

 

 

1,037

 

 

 

 

 

 

178.7

%

 

 

100.0

%

Change in fair value of equity securities, net

 

 

428

 

 

 

154

 

 

 

381

 

 

 

178.2

%

 

 

12.4

%

Net gains on sales of loans

 

 

9,449

 

 

 

12,671

 

 

 

8,735

 

 

 

(25.4

)%

 

 

8.2

%

Wealth management and trust income

 

 

710

 

 

 

693

 

 

 

704

 

 

 

2.5

%

 

 

0.9

%

Other non-interest income

 

 

1,051

 

 

 

990

 

 

 

1,648

 

 

 

6.2

%

 

 

(36.1

)%

Total non-interest income

 

$

17,690

 

 

$

22,234

 

 

$

14,542

 

 

 

(20.4

)%

 

 

21.6

%

Non-interest income for the fourth quarter of 2020 was $17.7 million, a decrease of $4.5 million, or 20.4%, compared to $22.2 million for the third quarter of 2020.

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

 

A decrease of $3.2 million in net gains on sales of loans, mainly due to a decrease in volume of sales of government guaranteed loans and lower premiums received on loans sold;

 

A loan servicing asset revaluation charge of $2.3 million compared to an upward adjustment of $1.1 million in the prior quarter; and

Partially offset by:

 

An increase of $1.9 million in net gains on sales of securities available-for-sale resulting from increased volume of sales.

 

 

 

 

 

During the fourth quarter of 2020, we sold $108.1 million of U.S. government guaranteed loans compared to $121.2 million during the third quarter of 2020. The decrease in sales was driven by lower inventory of U.S. government guaranteed loans.

Non-interest Expense

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

 

 

Three Months Ended

 

 

December 31, 2020

Change from

 

 

 

December 31,

 

 

September 30,

 

 

December 31,

 

 

September 30,

 

 

December 31,

 

(dollars in thousands)

 

2020

 

 

2020

 

 

2019

 

 

2020

 

 

2019

 

NON-INTEREST EXPENSE

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Salaries and employee benefits

 

$

22,559

 

 

$

23,126

 

 

$

24,228

 

 

 

(2.5

)%

 

 

(6.9

)%

Occupancy and equipment expense, net

 

 

6,854

 

 

 

5,220

 

 

 

5,241

 

 

 

31.3

%

 

 

30.8

%

Loan and lease related expenses

 

 

1,324

 

 

 

2,053

 

 

 

2,648

 

 

 

(35.5

)%

 

 

(50.2

)%

Legal, audit and other professional fees

 

 

1,336

 

 

 

2,390

 

 

 

2,340

 

 

 

(44.1

)%

 

 

(42.9

)%

Data processing

 

 

2,748

 

 

 

2,661

 

 

 

2,678

 

 

 

3.3

%

 

 

2.6

%

Net loss recognized on other real estate owned and other related expenses

 

 

495

 

 

 

349

 

 

 

122

 

 

 

42.1

%

 

 

306.4

%

Other intangible assets amortization expense

 

 

1,892

 

 

 

1,947

 

 

 

2,002

 

 

 

(2.8

)%

 

 

(5.5

)%

Other non-interest expense

 

 

9,813

 

 

 

3,941

 

 

 

4,461

 

 

 

148.9

%

 

 

120.5

%

Total non-interest expense

 

$

47,021

 

 

$

41,687

 

 

$

43,720

 

 

 

12.8

%

 

 

7.5

%

 


Byline Bancorp, Inc.

Page 7 of 22

 

 

Non-interest expense for the fourth quarter of 2020 was $47.0 million, an increase of $5.3 million, or 12.8%, from $41.7 million for the third quarter of 2020.

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

 

An increase of $5.9 million in other non-interest expense, mainly due to $4.0 million for impairment charges on assets held for sale and $2.8 million for branch consolidations; and

 

An increase of $1.6 million in occupancy and equipment expense, net, which includes $1.4 million of lease obligations related to branch consolidations;

 

Partially offset by:

 

A decrease of $1.1 million in legal, audit and other professional fees due to decreased legal expenses; and

 

A decrease of $729,000 in loan and lease related expenses due to decreases in the volume of, and broker fees on, U.S. Government guaranteed loan originations.

Our efficiency ratio was 61.22% for the fourth quarter of 2020 compared to 52.46% for the third quarter of 2020. Excluding impairment charges on assets held for sale, the Company's adjusted efficiency ratio1 was 55.77% for the fourth quarter of 2020, compared with 52.42% for the third quarter of 2020.   

INCOME TAXES

We recorded income tax expense of $4.2 million during the fourth quarter of 2020, an effective tax rate of 25.3%, reflecting a benefit from tax exempt income, compared to $5.3 million during the third quarter of 2020, an effective tax rate of 28.7%.

 


Byline Bancorp, Inc.

Page 8 of 22

 

STATEMENTS OF FINANCIAL CONDITION

Total assets were $6.4 billion at December 31, 2020, a decrease of $105.9 million compared to $6.5 billion at September 30, 2020.

The current quarter decrease was primarily due to:

 

A decrease in securities of $61.6 million, principally a result of sales of mortgage backed securities during the quarter;

 

A decrease in loans held for sale of $41.1 million, due to the timing of government guaranteed loans sold during the previous quarter; and

 

A decrease in loans and leases of $34.0 million, due to $104.4 million decrease in the PPP portfolio offset by increases to new originations;

 

o

Loans and leases excluding PPP increased $70.4 million during the quarter;

Partially offset by:

 

An increase in other assets of $59.2 million due to the timing of settlement of government guaranteed loans and securities sold during the quarter and not yet settled.

 

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

 

December 31, 2020

 

 

September 30, 2020

 

 

December 31, 2019

 

(dollars in thousands)

 

Amount

 

 

% of Total

 

 

Amount

 

 

% of Total

 

 

Amount

 

 

% of Total

 

Originated loans and leases

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Commercial real estate

 

$

1,017,587

 

 

 

23.5

%

 

$

919,862

 

 

 

21.0

%

 

$

792,263

 

 

 

20.9

%

Residential real estate

 

 

414,220

 

 

 

9.6

%

 

 

458,364

 

 

 

10.5

%

 

 

483,072

 

 

 

12.8

%

Construction, land development, and

   other land

 

 

226,408

 

 

 

5.2

%

 

 

234,017

 

 

 

5.3

%

 

 

235,794

 

 

 

6.2

%

Commercial and industrial

 

 

1,276,527

 

 

 

29.4

%

 

 

1,214,099

 

 

 

27.8

%

 

 

1,160,996

 

 

 

30.7

%

Paycheck protection program

 

 

517,815

 

 

 

11.9

%

 

 

622,191

 

 

 

14.2

%

 

 

 

 

 

0.0

%

Installment and other

 

 

1,267

 

 

 

0.0

%

 

 

2,346

 

 

 

0.1

%

 

 

5,372

 

 

 

0.1

%

Leasing financing receivables

 

 

214,636

 

 

 

4.9

%

 

 

185,700

 

 

 

4.2

%

 

 

158,155

 

 

 

4.2

%

Total originated loans and leases

 

$

3,668,460

 

 

 

84.5

%

 

$

3,636,579

 

 

 

83.1

%

 

$

2,835,652

 

 

 

74.9

%

Acquired impaired loans

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Commercial real estate

 

$

108,484

 

 

 

2.5

%

 

$

117,114

 

 

 

2.7

%

 

$

135,914

 

 

 

3.6

%

Residential real estate

 

 

78,840

 

 

 

1.9

%

 

 

84,197

 

 

 

1.9

%

 

 

100,223

 

 

 

2.6

%

Construction, land development, and

   other land

 

 

4,113

 

 

 

0.1

%

 

 

4,804

 

 

 

0.1

%

 

 

5,373

 

 

 

0.1

%

Commercial and industrial

 

 

10,178

 

 

 

0.2

%

 

 

10,489

 

 

 

0.3

%

 

 

16,909

 

 

 

0.4

%

Installment and other

 

 

202

 

 

 

0.0

%

 

 

214

 

 

 

0.0

%

 

 

249

 

 

 

0.1

%

Total acquired impaired loans

 

$

201,817

 

 

 

4.7

%

 

$

216,818

 

 

 

5.0

%

 

$

258,668

 

 

 

6.8

%

Acquired non-impaired loans and leases

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Commercial real estate

 

$

295,599

 

 

 

6.8

%

 

$

310,879

 

 

 

7.1

%

 

$

348,365

 

 

 

9.2

%

Residential real estate

 

 

79,211

 

 

 

1.8

%

 

 

90,835

 

 

 

2.1

%

 

 

128,527

 

 

 

3.4

%

Construction, land development, and

   other land

 

 

212

 

 

 

0.0

%

 

 

213

 

 

 

0.0

%

 

 

37,490

 

 

 

1.0

%

Commercial and industrial

 

 

82,195

 

 

 

1.9

%

 

 

104,221

 

 

 

2.4

%

 

 

153,660

 

 

 

4.1

%

Installment and other

 

 

536

 

 

 

0.0

%

 

 

583

 

 

 

0.0

%

 

 

944

 

 

 

0.0

%

Leasing financing receivables

 

 

12,505

 

 

 

0.3

%

 

 

14,389

 

 

 

0.3

%

 

 

22,355

 

 

 

0.6

%

Total acquired non-impaired loans

   and leases

 

$

470,258

 

 

 

10.8

%

 

$

521,120

 

 

 

11.9

%

 

$

691,341

 

 

 

18.3

%

Total loans and leases

 

$

4,340,535

 

 

 

100.0

%

 

$

4,374,517

 

 

 

100.0

%

 

$

3,785,661

 

 

 

100.0

%

Allowance for loan and lease losses

 

 

(66,347

)

 

 

 

 

 

 

(61,258

)

 

 

 

 

 

 

(31,936

)

 

 

 

 

Total loans and leases, net of allowance for

   loan and lease losses

 

$

4,274,188

 

 

 

 

 

 

$

4,313,259

 

 

 

 

 

 

$

3,753,725

 

 

 

 

 

 

 


Byline Bancorp, Inc.

Page 9 of 22

 

ASSET QUALITY

Non-Performing Assets

The following table sets forth the amounts of non-performing loans and leases (excluding acquired impaired), other real estate owned, and accruing troubled debt restructured loans at the dates indicated:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

December 31, 2020

Change from

 

(dollars in thousands)

 

December 31, 2020

 

 

September 30, 2020

 

 

December 31, 2019

 

 

September 30, 2020

 

 

December 31, 2019

 

Non-performing assets:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Non-accrual loans and leases

 

$

41,103

 

 

$

43,196

 

 

$

36,272

 

 

 

(4.8

)%

 

 

13.3

%

Past due loans and leases 90 days or more

   and still accruing interest

 

 

 

 

 

 

 

 

 

 

%

 

%

Total non-performing loans and leases

 

$

41,103

 

 

$

43,196

 

 

$

36,272

 

 

 

(4.8

)%

 

 

13.3

%

Other real estate owned

 

 

6,350

 

 

 

8,150

 

 

 

9,896

 

 

 

(22.1

)%

 

 

(35.8

)%

Total non-performing assets

 

$

47,453

 

 

$

51,346

 

 

$

46,168

 

 

 

(7.6

)%

 

 

2.8

%

Accruing troubled debt restructured loans (1)

 

$

2,495

 

 

$

2,293

 

 

$

1,771

 

 

 

8.8

%

 

 

40.9

%

Total non-performing loans and leases as a

   percentage of total loans and leases

 

 

0.95

%

 

 

0.99

%

 

 

0.96

%

 

 

 

 

 

 

 

 

Total non-performing assets as a percentage

   of total assets

 

 

0.74

%

 

 

0.79

%

 

 

0.84

%

 

 

 

 

 

 

 

 

Allowance for loan and lease losses as a

   percentage of non-performing loans and

   leases

 

 

161.42

%

 

 

141.81

%

 

 

88.05

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Non-performing assets guaranteed by

   U.S. government:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Non-accrual loans guaranteed

 

$

3,645

 

 

$

3,749

 

 

$

4,232

 

 

 

(2.8

)%

 

 

(13.9

)%

Past due loans 90 days or more and still

   accruing interest guaranteed

 

 

 

 

 

 

 

 

 

 

%

 

%

Total non-performing loans guaranteed

 

$

3,645

 

 

$

3,749

 

 

$

4,232

 

 

 

(2.8

)%

 

 

(13.9

)%

Accruing troubled debt restructured loans

   guaranteed (1)

 

$

 

 

$

 

 

$

 

 

%

 

%

Total non-performing loans and leases

   not guaranteed as a percentage of total

   loans and leases

 

 

0.86

%

 

 

0.90

%

 

 

0.85

%

 

 

 

 

 

 

 

 

Total non-performing assets not guaranteed

   as a percentage of total assets

 

 

0.69

%

 

 

0.73

%

 

 

0.76

%

 

 

 

 

 

 

 

 

Variances in non-performing assets were:  

 

Non-performing loans and leases were $41.1 million at December 31, 2020, a decrease of $2.1 million from $43.2 million at September 30, 2020; and

 

Other real estate owned was $6.4 million at December 31, 2020, a decrease of $1.8 million from $8.2 million at September 30, 2020 mainly due to sales.

U.S. government guaranteed balances of non-performing loans were $3.6 million at December 31, 2020 and $3.7 million at September 30, 2020.

 

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


Byline Bancorp, Inc.

Page 10 of 22

 

Allowance for Loan and Lease Losses

The following table presents the balance and activity within the allowance for loan and lease losses for the periods indicated:

 

 

Three Months Ended

 

 

 

December 31,

 

 

September 30,

 

 

December 31,

 

(dollars in thousands)

 

2020

 

 

2020

 

 

2019

 

Allowance for loan and lease losses, beginning of period

 

$

61,258

 

 

$

51,300

 

 

$

31,585

 

Provision for loan and lease losses

 

 

10,236

 

 

 

15,740

 

 

 

4,387

 

Net charge-offs of loans and leases

 

 

(5,147

)

 

 

(5,782

)

 

 

(4,036

)

Allowance for loan and lease losses, end of period

 

$

66,347

 

 

$

61,258

 

 

$

31,936

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Allowance for loan and lease losses to period end

     total loans and leases held for investment

 

 

1.53

%

 

 

1.40

%

 

 

0.84

%

Net charge-offs (annualized) to average loans

     and leases outstanding during the period

 

 

0.47

%

 

 

0.53

%

 

 

0.42

%

Provision for loan and lease losses to net charge-offs

     during the period

 

 

1.99

x

 

 

2.72

x

 

 

1.09

x

 

The allowance for loan and lease losses as a percentage of total loans and leases held for investment increased to 1.53% at December 31, 2020 compared to 1.40% at September 30, 2020. The allowance for loan and lease losses as a percentage of total loans and leases held for investment excluding PPP loans increased to 1.74% at December 31, 2020 from 1.63% at September 30, 2020.

In June 2016, the Financial Accounting Standards Board (“FASB”) issued new guidance on the recognition of credit losses, which replaces the incurred loss impairment methodology with a methodology that reflects expected credit losses. In November 2019, the FASB delayed the effective date of the standard for smaller reporting companies, which includes emerging growth companies.  Assuming we remain an emerging growth company, the standard is effective for fiscal years beginning after December 15, 2022.  We are in the process of implementation and determining the impact that this new authoritative guidance will have on our consolidated financial statements.

Net Charge-Offs

Net charge-offs during the fourth quarter of 2020 were $5.1 million, or 0.47% of average loans and leases, on an annualized basis, a decrease of $635,000 compared to $5.8 million, or 0.53% of average loans and leases, during the third quarter of 2020.

Net charge-offs for the fourth quarter of 2020 included $5.0 million in the unguaranteed portion of U.S. government guaranteed loans, while net charge-offs for the third quarter of 2020 included $4.1 million in the unguaranteed portion of U.S. government guaranteed loans.


 


Byline Bancorp, Inc.

Page 11 of 22

 

Deposits and Other Liabilities

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

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

December 31, 2020

Percentage Change from

 

(dollars in thousands)

 

December 31, 2020

 

 

September 30, 2020

 

 

December 31, 2019

 

 

September 30, 2020

 

 

December 31, 2019

 

Non-interest-bearing demand deposits

 

$

1,762,676

 

 

$

1,718,682

 

 

$

1,279,641

 

 

 

2.6

%

 

 

37.7

%

Interest-bearing checking accounts

 

 

494,424

 

 

 

584,682

 

 

 

338,185

 

 

 

(15.4

)%

 

 

46.2

%

Money market demand accounts

 

 

1,142,709

 

 

 

1,153,433

 

 

 

881,387

 

 

 

(0.9

)%

 

 

29.6

%

Other savings

 

 

564,700

 

 

 

542,741

 

 

 

475,839

 

 

 

4.0

%

 

 

18.7

%

Time deposits (below $250,000)

 

 

600,810

 

 

 

622,328

 

 

 

916,723

 

 

 

(3.5

)%

 

 

(34.5

)%

Time deposits ($250,000 and above)

 

 

186,712

 

 

 

188,379

 

 

 

255,802

 

 

 

(0.9

)%

 

 

(27.0

)%

Total deposits

 

$

4,752,031

 

 

$

4,810,245

 

 

$

4,147,577

 

 

 

(1.2

)%

 

 

14.6

%

 

Total deposits were $4.8 billion at December 31, 2020, a decrease of $58.2 million, or 1.2%, compared to September 30, 2020. Non-interest-bearing deposits were 37.1% and 35.7% of total deposits at December 31, 2020 and September 30, 2020, respectively.

The decrease in the current quarter was primarily due to:

 

A decrease in interest-bearing checking accounts of $90.3 million, mostly due to seasonal decreases in public funds; and

 

A decrease in time deposits of $23.2 million, principally driven by decreases in personal certificates;

 

Partially offset by:

 

An increase in non-interest-bearing deposits of $44.0 million, mostly due to increases in business deposits.

 

Total borrowings and other liabilities were $833.2 million at December 31, 2020, a decrease of $58.4 million from $891.6 million at September 30, 2020, primarily driven by a $77.7 million decrease in the Paycheck Protection Program Liquidity Facility resulting from forgiveness of loans.

Stockholders’ Equity

Total stockholders’ equity was $805.5 million at December 31, 2020, an increase of $10.8 million from $794.7 million at September 30, 2020. The increase was primarily due to net income generated during the quarter less dividends declared.  

 


Byline Bancorp, Inc.

Page 12 of 22

 

The following table presents the actual regulatory capital dollar amounts and ratios of the Company and Byline Bank as of December 31, 2020:

 

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

%

 

Capital ratios for the period presented are based on the Basel III regulatory capital framework as applied to our current business and operations, and are subject to, among other things, completion and filing of our regulatory reports and ongoing regulatory review and implementation guidance.

On December 10, 2020, the Company announced that its Board of Directors approved a new stock repurchase program authorizing the purchase of up to an aggregate of 1,250,000 shares of the Company’s outstanding common stock over a two year period ending December 31, 2022.

Conference Call, Webcast and Slide Presentation

We will host a conference call and webcast at 9:00 a.m. Central Time on Friday, January 29, 2021 to discuss our quarterly financial results. Analysts and investors may participate in the question-and-answer session. The call can be accessed via telephone at (877) 512-8755. A recorded replay can be accessed through February 12, 2021 by dialing (877) 344-7529; passcode: 10151039.

A slide presentation relating to the fourth quarter 2020 results will be accessible prior to the scheduled conference call. The slide presentation and webcast of the conference call can be accessed on the Company’s investor relations website at www.bylinebancorp.com.


 


Byline Bancorp, Inc.

Page 13 of 22

 

About Byline Bancorp, Inc.

Headquartered in Chicago, Byline Bancorp, Inc. is the parent company for Byline Bank, a full service commercial bank serving small- and medium-sized businesses, financial sponsors, and consumers. Byline Bank has approximately $6.4 billion in assets and operates more than 40 full service branch locations throughout the Chicago and Milwaukee metropolitan areas. Byline Bank offers a broad range of commercial and retail banking products and services including small ticket equipment leasing solutions and is one of the top five Small Business Administration lenders in the United States.  

Non-GAAP Financial Measures

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


 


Byline Bancorp, Inc.

Page 14 of 22

 

Forward-Looking Statements

This communication contains forward-looking statements within the meaning of the U.S. federal securities laws. Forward-looking statements include, without limitation, statements concerning plans, estimates, calculations, forecasts and projections with respect to the anticipated future performance of the Company. These statements are often, but not always, made through the use of words or phrases such as ‘‘may’’, ‘‘might’’, ‘‘should’’, ‘‘could’’, ‘‘predict’’, ‘‘potential’’, ‘‘believe’’, ‘‘expect’’, ‘‘continue’’, ‘‘will’’, ‘‘anticipate’’, ‘‘seek’’, ‘‘estimate’’, ‘‘intend’’, ‘‘plan’’, ‘‘projection’’, ‘‘would’’, ‘‘annualized’’, “target” and ‘‘outlook’’, or the negative version of those words or other comparable words or phrases of a future or forward-looking nature. Forward-looking statements involve estimates and known and unknown risks, and reflect various assumptions and involve elements of subjective judgement and analysis, which may or may not prove to be correct, and which are subject to uncertainties and contingencies outside the control of Byline and its respective affiliates, directors, employees and other representatives, which could cause actual results to differ materially from those presented in this communication.

The COVID-19 pandemic is adversely affecting us, our employees, customers, counterparties and third-party service providers, and the ultimate extent of the impacts on our business, financial position, results of operations, liquidity, and prospects is uncertain. Continued deterioration in general business and economic conditions, including further increases in unemployment rates, or turbulence in U.S. or global financial markets could adversely affect our revenues and the values of our assets and liabilities, reduce the availability of funding, lead to a tightening of credit, and further increase stock price volatility. In addition, changes to statutes, regulations, or regulatory policies or practices as a result of, or in response to COVID-19, could affect us in substantial and unpredictable ways.

No representations, warranties or guarantees are or will be made by Byline as to the reliability, accuracy or completeness of any forward-looking statements contained in this communication or that such forward-looking statements are or will remain based on reasonable assumptions. You should not place undue reliance on any forward-looking statements contained in this communication.

Certain risks and important factors that could affect Byline’s future results are identified in its Annual Report on Form 10-K and other reports filed with the Securities and Exchange Commission, including among other things under the heading “Risk Factors” in its Annual Report on Form 10-K for the year ended December 31, 2019, and its Quarterly Report on Form 10-Q for the quarters ended March 31, 2020 and June 30, 2020.  Any forward-looking statement speaks only as of the date on which it is made, and Byline undertakes no obligation to update any forward-looking statement, whether to reflect events or circumstances after the date on which the statement is made, to reflect new information or the occurrence of unanticipated events, or otherwise unless required under the federal securities laws.

Contacts:

 

Investors:

Media:

Tony Rossi

Erin O’Neill

Financial Profiles, Inc.

310-622-8221

Director of Marketing

Byline Bank

BYIR@bylinebank.com

773-475-2901

 

eoneill@bylinebank.com

 

 

 

 

 


Byline Bancorp, Inc.

Page 15 of 22

 

BYLINE BANCORP, INC. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION (unaudited)

 

 

December 31,

 

 

September 30,

 

 

June 30,

 

 

March 31,

 

 

December 31,

 

(dollars in thousands)

 

2020

 

 

2020

 

 

2020

 

 

2020

 

 

2019

 

ASSETS

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cash and due from banks

 

$

41,432

 

 

$

47,433

 

 

$

51,818

 

 

$

45,233

 

 

$

48,228

 

Interest bearing deposits with other banks

 

 

41,988

 

 

 

53,645

 

 

 

88,113

 

 

 

74,386

 

 

 

32,509

 

Cash and cash equivalents

 

 

83,420

 

 

 

101,078

 

 

 

139,931

 

 

 

119,619

 

 

 

80,737

 

Equity and other securities, at fair value

 

 

8,764

 

 

 

8,335

 

 

 

8,181

 

 

 

7,413

 

 

 

8,031

 

Securities available-for-sale, at fair value

 

 

1,447,230

 

 

 

1,509,211

 

 

 

1,426,871

 

 

 

1,299,483

 

 

 

1,186,292

 

Securities held-to-maturity, at amortized cost

 

 

4,395

 

 

 

4,400

 

 

 

4,404

 

 

 

4,408

 

 

 

4,412

 

Restricted stock, at cost

 

 

10,507

 

 

 

9,652

 

 

 

6,232

 

 

 

24,197

 

 

 

22,127

 

Loans held for sale

 

 

7,924

 

 

 

49,049

 

 

 

3,031

 

 

 

13,299

 

 

 

11,732

 

Loans and leases:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Loans and leases

 

 

4,340,535

 

 

 

4,374,517

 

 

 

4,391,122

 

 

 

3,860,259

 

 

 

3,785,661

 

Allowance for loan and lease losses

 

 

(66,347

)

 

 

(61,258

)

 

 

(51,300

)

 

 

(41,840

)

 

 

(31,936

)

Net loans and leases

 

 

4,274,188

 

 

 

4,313,259

 

 

 

4,339,822

 

 

 

3,818,419

 

 

 

3,753,725

 

Servicing assets, at fair value

 

 

22,042

 

 

 

21,267

 

 

 

18,351

 

 

 

17,800

 

 

 

19,471

 

Premises and equipment, net

 

 

86,728

 

 

 

94,638

 

 

 

95,546

 

 

 

96,446

 

 

 

96,140

 

Other real estate owned, net

 

 

6,350

 

 

 

8,150

 

 

 

8,652

 

 

 

9,273

 

 

 

9,896

 

Goodwill and other intangible assets, net

 

 

172,631

 

 

 

174,523

 

 

 

176,470

 

 

 

178,362

 

 

 

180,255

 

Bank-owned life insurance

 

 

10,009

 

 

 

9,952

 

 

 

9,896

 

 

 

9,898

 

 

 

9,750

 

Deferred tax assets, net

 

 

40,181

 

 

 

35,945

 

 

 

37,082

 

 

 

33,845

 

 

 

38,315

 

Accrued interest receivable and other assets

 

 

216,283

 

 

 

157,054

 

 

 

119,049

 

 

 

102,292

 

 

 

100,926

 

Total assets

 

$

6,390,652

 

 

$

6,496,513

 

 

$

6,393,518

 

 

$

5,734,754

 

 

$

5,521,809

 

LIABILITIES AND STOCKHOLDERS’ EQUITY

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

LIABILITIES

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Non-interest-bearing demand deposits

 

$

1,762,676

 

 

$

1,718,682

 

 

$

1,768,675

 

 

$

1,290,896

 

 

$

1,279,641

 

Interest-bearing deposits

 

 

2,989,355

 

 

 

3,091,563

 

 

 

3,189,670

 

 

 

2,947,940

 

 

 

2,867,936

 

Total deposits

 

 

4,752,031

 

 

 

4,810,245

 

 

 

4,958,345

 

 

 

4,238,836

 

 

 

4,147,577

 

Other borrowings

 

 

647,901

 

 

 

710,560

 

 

 

510,414

 

 

 

640,647

 

 

 

539,638

 

Subordinated notes, net

 

 

73,342

 

 

 

73,299

 

 

 

48,777

 

 

 

 

 

 

 

Junior subordinated debentures issued to

   capital trusts, net

 

 

36,451

 

 

 

36,331

 

 

 

36,206

 

 

 

37,462

 

 

 

37,334

 

Accrued expenses and other liabilities

 

 

75,463

 

 

 

71,382

 

 

 

58,841

 

 

 

55,142

 

 

 

47,145

 

Total liabilities

 

 

5,585,188

 

 

 

5,701,817

 

 

 

5,612,583

 

 

 

4,972,087

 

 

 

4,771,694

 

STOCKHOLDERS’ EQUITY

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Preferred stock

 

 

10,438

 

 

 

10,438

 

 

 

10,438

 

 

 

10,438

 

 

 

10,438

 

Common stock

 

 

384

 

 

 

383

 

 

 

381

 

 

 

380

 

 

 

379

 

Additional paid-in capital

 

 

587,165

 

 

 

586,057

 

 

 

583,307

 

 

 

582,517

 

 

 

580,965

 

Retained earnings

 

 

191,098

 

 

 

180,162

 

 

 

168,444

 

 

 

160,652

 

 

 

159,033

 

Treasury stock

 

 

(1,668

)

 

 

(1,668

)

 

 

(1,668

)

 

 

(1,668

)

 

 

 

Accumulated other comprehensive income

   (loss), net of tax

 

 

18,047

 

 

 

19,324

 

 

 

20,033

 

 

 

10,348

 

 

 

(700

)

Total stockholders’ equity

 

 

805,464

 

 

 

794,696

 

 

 

780,935

 

 

 

762,667

 

 

 

750,115

 

Total liabilities and stockholders’

   equity

 

$

6,390,652

 

 

$

6,496,513

 

 

$

6,393,518

 

 

$

5,734,754

 

 

$

5,521,809

 


 


Byline Bancorp, Inc.

Page 16 of 22

 

BYLINE BANCORP, INC. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF OPERATIONS (unaudited)

 

 

Three Months Ended

 

 

Year Ended

 

 

 

December 31,

 

 

September 30,

 

 

June 30,

 

 

March 31,

 

 

December 31,

 

 

December 31,

 

 

December 31,

 

(dollars in thousands, except per share data)

 

2020

 

 

2020

 

 

2020

 

 

2020

 

 

2019

 

 

2020

 

 

2019

 

INTEREST AND DIVIDEND INCOME

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest and fees on loans and leases

 

$

53,441

 

 

$

51,036

 

 

$

50,153

 

 

$

54,158

 

 

$

58,203

 

 

$

208,788

 

 

$

235,501

 

Interest on securities

 

 

6,252

 

 

 

7,070

 

 

 

7,530

 

 

 

8,016

 

 

 

7,212

 

 

 

28,868

 

 

 

27,019

 

Other interest and dividend income

 

 

232

 

 

 

128

 

 

 

222

 

 

 

992

 

 

 

500

 

 

 

1,574

 

 

 

2,294

 

Total interest and dividend income

 

 

59,925

 

 

 

58,234

 

 

 

57,905

 

 

 

63,166

 

 

 

65,915

 

 

 

239,230

 

 

 

264,814

 

INTEREST EXPENSE

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Deposits

 

 

1,814

 

 

 

2,760

 

 

 

4,246

 

 

 

7,804

 

 

 

9,325

 

 

 

16,624

 

 

 

36,325

 

Other borrowings

 

 

480

 

 

 

465

 

 

 

476

 

 

 

1,897

 

 

 

1,989

 

 

 

3,318

 

 

 

9,255

 

Subordinated notes and debentures

 

 

1,611

 

 

 

1,485

 

 

 

574

 

 

 

640

 

 

 

687

 

 

 

4,310

 

 

 

2,949

 

Total interest expense

 

 

3,905

 

 

 

4,710

 

 

 

5,296

 

 

 

10,341

 

 

 

12,001

 

 

 

24,252

 

 

 

48,529

 

Net interest income

 

 

56,020

 

 

 

53,524

 

 

 

52,609

 

 

 

52,825

 

 

 

53,914

 

 

 

214,978

 

 

 

216,285

 

PROVISION FOR LOAN AND LEASE LOSSES

 

 

10,236

 

 

 

15,740

 

 

 

15,518

 

 

 

14,455

 

 

 

4,387

 

 

 

55,949

 

 

 

20,708

 

Net interest income after provision

   for loan and lease losses

 

 

45,784

 

 

 

37,784

 

 

 

37,091

 

 

 

38,370

 

 

 

49,527

 

 

 

159,029

 

 

 

195,577

 

NON-INTEREST INCOME

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Fees and service charges on deposits

 

 

1,740

 

 

 

1,603

 

 

 

1,455

 

 

 

1,673

 

 

 

1,635

 

 

 

6,471

 

 

 

6,458

 

Loan servicing revenue

 

 

2,645

 

 

 

2,936

 

 

 

2,980

 

 

 

2,758

 

 

 

2,834

 

 

 

11,319

 

 

 

10,695

 

Loan servicing asset revaluation

 

 

(2,298

)

 

 

1,122

 

 

 

(711

)

 

 

(3,064

)

 

 

(2,545

)

 

 

(4,951

)

 

 

(6,639

)

ATM and interchange fees

 

 

1,076

 

 

 

1,028

 

 

 

845

 

 

 

1,216

 

 

 

1,150

 

 

 

4,165

 

 

 

3,785

 

Net gains on sales of securities

   available-for-sale

 

 

2,889

 

 

 

1,037

 

 

 

 

 

 

1,375

 

 

 

 

 

 

5,301

 

 

 

1,151

 

Change in fair value of equity securities,

   net

 

 

428

 

 

 

154

 

 

 

766

 

 

 

(619

)

 

 

381

 

 

 

729

 

 

 

1,416

 

Net gains on sales of loans

 

 

9,449

 

 

 

12,671

 

 

 

6,456

 

 

 

4,773

 

 

 

8,735

 

 

 

33,349

 

 

 

31,845

 

Wealth management and trust income

 

 

710

 

 

 

693

 

 

 

608

 

 

 

669

 

 

 

704

 

 

 

2,680

 

 

 

2,578

 

Other non-interest income

 

 

1,051

 

 

 

990

 

 

 

430

 

 

 

526

 

 

 

1,648

 

 

 

2,997

 

 

 

4,259

 

Total non-interest income

 

 

17,690

 

 

 

22,234

 

 

 

12,829

 

 

 

9,307

 

 

 

14,542

 

 

 

62,060

 

 

 

55,548

 

NON-INTEREST EXPENSE

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Salaries and employee benefits

 

 

22,559

 

 

 

23,126

 

 

 

19,405

 

 

 

24,666

 

 

 

24,228

 

 

 

89,756

 

 

 

95,309

 

Occupancy and equipment expense, net

 

 

6,854

 

 

 

5,220

 

 

 

5,359

 

 

 

5,524

 

 

 

5,241

 

 

 

22,957

 

 

 

19,771

 

Loan and lease related expenses

 

 

1,324

 

 

 

2,053

 

 

 

1,260

 

 

 

1,318

 

 

 

2,648

 

 

 

5,955

 

 

 

8,015

 

Legal, audit, and other professional fees

 

 

1,336

 

 

 

2,390

 

 

 

2,078

 

 

 

2,334

 

 

 

2,340

 

 

 

8,138

 

 

 

11,453

 

Data processing

 

 

2,748

 

 

 

2,661

 

 

 

2,826

 

 

 

2,665

 

 

 

2,678

 

 

 

10,900

 

 

 

13,733

 

Net loss recognized on other real

   estate owned and other related

   expenses

 

 

495

 

 

 

349

 

 

 

456

 

 

 

519

 

 

 

122

 

 

 

1,819

 

 

 

665

 

Other intangible assets amortization

   expense

 

 

1,892

 

 

 

1,947

 

 

 

1,892

 

 

 

1,893

 

 

 

2,002

 

 

 

7,624

 

 

 

7,737

 

Other non-interest expense

 

 

9,813

 

 

 

3,941

 

 

 

3,777

 

 

 

4,742

 

 

 

4,461

 

 

 

22,273

 

 

 

17,147

 

Total non-interest expense

 

 

47,021

 

 

 

41,687

 

 

 

37,053

 

 

 

43,661

 

 

 

43,720

 

 

 

169,422

 

 

 

173,830

 

INCOME BEFORE PROVISION FOR INCOME

   TAXES

 

 

16,453

 

 

 

18,331

 

 

 

12,867

 

 

 

4,016

 

 

 

20,349

 

 

 

51,667

 

 

 

77,295

 

PROVISION FOR INCOME TAXES

 

 

4,162

 

 

 

5,260

 

 

 

3,728

 

 

 

1,050

 

 

 

4,497

 

 

 

14,200

 

 

 

20,293

 

NET INCOME

 

 

12,291

 

 

 

13,071

 

 

 

9,139

 

 

 

2,966

 

 

 

15,852

 

 

 

37,467

 

 

 

57,002

 

Dividends on preferred shares

 

 

196

 

 

 

196

 

 

 

195

 

 

 

196

 

 

 

196

 

 

 

783

 

 

 

783

 

INCOME AVAILABLE TO COMMON

   STOCKHOLDERS

 

$

12,095

 

 

$

12,875

 

 

$

8,944

 

 

$

2,770

 

 

$

15,656

 

 

$

36,684

 

 

$

56,219

 

EARNINGS PER COMMON SHARE

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic

 

$

0.32

 

 

$

0.34

 

 

$

0.24

 

 

$

0.07

 

 

$

0.41

 

 

$

0.96

 

 

$

1.51

 

Diluted

 

$

0.31

 

 

$

0.34

 

 

$

0.24

 

 

$

0.07

 

 

$

0.41

 

 

$

0.96

 

 

$

1.48

 

 


Byline Bancorp, Inc.

Page 17 of 22

 

 

BYLINE BANCORP, INC. AND SUBSIDIARIES

SELECTED FINANCIAL DATA (unaudited)

 

 

As of or For the Three Months Ended

 

 

As of or For the Year Ended

 

(dollars in thousands, except share and

 

December 31,

 

 

September 30,

 

 

June 30,

 

 

March 31,

 

 

December 31,

 

 

December 31,

 

 

December 31,

 

   per share data)

 

2020

 

 

2020

 

 

2020

 

 

2020

 

 

2019

 

 

2020

 

 

2019

 

Common Share Data

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic earnings per common share

 

$

0.32

 

 

$

0.34

 

 

$

0.24

 

 

$

0.07

 

 

$

0.41

 

 

$

0.96

 

 

$

1.51

 

Diluted earnings per common share

 

$

0.31

 

 

$

0.34

 

 

$

0.24

 

 

$

0.07

 

 

$

0.41

 

 

$

0.96

 

 

$

1.48

 

Adjusted diluted earnings per common

   share(2)(3)(4)

 

$

0.38

 

 

$

0.34

 

 

$

0.24

 

 

$

0.09

 

 

$

0.42

 

 

$

1.05

 

 

$

1.62

 

Weighted average common shares

   outstanding (basic)

 

 

38,202,665

 

 

 

38,057,350

 

 

 

37,919,480

 

 

 

37,943,333

 

 

 

37,872,835

 

 

 

38,031,250

 

 

 

37,290,486

 

Weighted average common shares

   outstanding (diluted)

 

 

38,574,129

 

 

 

38,249,335

 

 

 

38,027,289

 

 

 

38,663,658

 

 

 

38,537,899

 

 

 

38,312,608

 

 

 

37,986,463

 

Common shares outstanding

 

 

38,618,054

 

 

 

38,568,916

 

 

 

38,383,217

 

 

 

38,383,021

 

 

 

38,256,500

 

 

 

38,618,054

 

 

 

38,256,500

 

Cash dividends per common share

 

$

0.03

 

 

$

0.03

 

 

$

0.03

 

 

$

0.03

 

 

$

0.03

 

 

$

0.12

 

 

$

0.03

 

Dividend payout ratio on common stock

 

 

9.38

%

 

 

8.82

%

 

 

12.50

%

 

 

42.86

%

 

 

7.32

%

 

 

12.50

%

 

 

2.03

%

Tangible book value per common share(1)

 

$

16.12

 

 

$

15.81

 

 

$

15.47

 

 

$

14.95

 

 

$

14.62

 

 

$

16.12

 

 

$

14.62

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Key Ratios and Performance Metrics

   (annualized where applicable)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net interest margin, fully taxable equivalent (1)(5)

 

 

3.78

%

 

 

3.61

%

 

 

3.72

%

 

 

4.18

%

 

 

4.33

%

 

 

3.81

%

 

 

4.48

%

Average cost of deposits

 

 

0.15

%

 

 

0.22

%

 

 

0.36

%

 

 

0.75

%

 

 

0.88

%

 

 

0.35

%

 

 

0.91

%

Efficiency ratio(2)

 

 

61.22

%

 

 

52.46

%

 

 

53.73

%

 

 

67.23

%

 

 

60.94

%

 

 

58.40

%

 

 

61.10

%

Adjusted efficiency ratio(1)(2)(3)

 

 

55.77

%

 

 

52.42

%

 

 

53.73

%

 

 

66.08

%

 

 

60.52

%

 

 

56.68

%

 

 

58.84

%

Non-interest expense to average assets

 

 

2.92

%

 

 

2.59

%

 

 

2.41

%

 

 

3.15

%

 

 

3.20

%

 

 

2.76

%

 

 

3.29

%

Adjusted non-interest expense to

   average assets(1)(3)

 

 

2.67

%

 

 

2.59

%

 

 

2.41

%

 

 

3.10

%

 

 

3.18

%

 

 

2.68

%

 

 

3.16

%

Return on average stockholders' equity

 

 

6.07

%

 

 

6.57

%

 

 

4.74

%

 

 

1.56

%

 

 

8.43

%

 

 

4.78

%

 

 

8.05

%

Adjusted return on average

   stockholders' equity(1)(3)(4)

 

 

7.50

%

 

 

6.58

%

 

 

4.74

%

 

 

1.83

%

 

 

8.54

%

 

 

5.21

%

 

 

8.77

%

Return on average assets

 

 

0.76

%

 

 

0.81

%

 

 

0.59

%

 

 

0.21

%

 

 

1.16

%

 

 

0.61

%

 

 

1.05

%

Adjusted return on average

   assets(1)(3)(4)

 

 

0.94

%

 

 

0.81

%

 

 

0.59

%

 

 

0.25

%

 

 

1.17

%

 

 

0.67

%

 

 

1.18

%

Non-interest income to total

   revenues(1)

 

 

24.00

%

 

 

29.35

%

 

 

19.61

%

 

 

14.98

%

 

 

21.24

%

 

 

22.40

%

 

 

20.43

%

Pre-tax pre-provision return on

   average assets(1)

 

 

1.66

%

 

 

2.12

%

 

 

1.85

%

 

 

1.33

%

 

 

1.81

%

 

 

1.75

%

 

 

1.86

%

Adjusted pre-tax pre-provision return on

   average assets(1)(3)

 

 

1.91

%

 

 

2.12

%

 

 

1.85

%

 

 

1.39

%

 

 

1.83

%

 

 

1.83

%

 

 

1.99

%

Return on average tangible common

   stockholders' equity(1)

 

 

8.61

%

 

 

9.39

%

 

 

7.05

%

 

 

2.89

%

 

 

12.20

%

 

 

7.06

%

 

 

11.80

%

Adjusted return on average tangible

   common stockholders' equity(1)(3)

 

 

10.47

%

 

 

9.40

%

 

 

7.05

%

 

 

3.25

%

 

 

12.35

%

 

 

7.63

%

 

 

12.78

%

Non-interest-bearing deposits to total

   deposits

 

 

37.09

%

 

 

35.73

%

 

 

35.67

%

 

 

30.45

%

 

 

30.85

%

 

 

37.09

%

 

 

30.85

%

Loans and leases held for sale and loans

   and lease held for investment to total

   deposits

 

 

91.51

%

 

 

91.96

%

 

 

88.62

%

 

 

91.38

%

 

 

91.56

%

 

 

91.51

%

 

 

91.56

%

Deposits to total liabilities

 

 

85.08

%

 

 

84.36

%

 

 

88.34

%

 

 

85.25

%

 

 

86.92

%

 

 

85.08

%

 

 

86.92

%

Deposits per branch

 

$

103,305

 

 

$

84,390

 

 

$

86,989

 

 

$

74,366

 

 

$

67,993

 

 

$

103,305

 

 

$

67,993

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Asset Quality Ratios

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Non-performing loans and leases to total

   loans and leases held for investment, net

   before ALLL

 

 

0.95

%

 

 

0.99

%

 

 

0.92

%

 

 

1.27

%

 

 

0.96

%

 

 

0.95

%

 

 

0.96

%

ALLL to total loans and leases held for

   investment, net before ALLL

 

 

1.53

%

 

 

1.40

%

 

 

1.17

%

 

 

1.08

%

 

 

0.84

%

 

 

1.53

%

 

 

0.84

%

Net charge-offs to average total loans and

   leases held for investment, net before

   ALLL

 

 

0.47

%

 

 

0.53

%

 

 

0.57

%

 

 

0.48

%

 

 

0.42

%

 

 

0.51

%

 

 

0.37

%

Acquisition accounting adjustments(4)

 

$

13,389

 

 

$

17,133

 

 

$

19,324

 

 

$

25,889

 

 

$

28,511

 

 

$

13,389

 

 

$

28,511

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Capital Ratios

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Common equity to total assets

 

 

12.44

%

 

 

12.07

%

 

 

12.05

%

 

 

13.12

%

 

 

13.40

%

 

 

12.44

%

 

 

13.40

%

Tangible common equity to tangible

   assets(1)

 

 

10.01

%

 

 

9.64

%

 

 

9.55

%

 

 

10.33

%

 

 

10.47

%

 

 

10.01

%

 

 

10.47

%

Leverage ratio

 

 

11.12

%

 

 

10.93

%

 

 

10.29

%

 

 

11.18

%

 

 

11.39

%

 

 

11.12

%

 

 

11.39

%

Common equity tier 1 capital ratio

 

 

12.20

%

 

 

12.55

%

 

 

12.33

%

 

 

12.24

%

 

 

12.36

%

 

 

12.20

%

 

 

12.36

%

Tier 1 capital ratio

 

 

13.36

%

 

 

13.77

%

 

 

13.56

%

 

 

13.52

%

 

 

13.67

%

 

 

13.36

%

 

 

13.67

%

Total capital ratio

 

 

16.18

%

 

 

16.67

%

 

 

15.86

%

 

 

14.50

%

 

 

14.43

%

 

 

16.18

%

 

 

14.43

%

 

 

(1)

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

 

(2)

Represents non-interest expense less amortization of intangible assets divided by net interest income and non-interest income.

 

(3)

Calculation excludes impairment charges, merger-related expenses, and core systems conversion expense.

 

(4)

Represents the remaining net unaccreted discount as a result of applying the fair value adjustment at the time of the business combination on acquired loans.

 

(5)

Interest income and rates include the effects of a tax equivalent adjustment to adjust tax exempt investment income on tax exempt investment securities to a fully taxable basis, assuming a federal income tax rate of 21%.

 


Byline Bancorp, Inc.

Page 18 of 22

 

BYLINE BANCORP, INC. AND SUBSIDIARIES

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

 

 

 

For the Three Months Ended December 31,

 

 

 

2020

 

 

2019

 

(dollars in thousands)

 

Average

Balance(5)

 

 

Interest

Inc / Exp

 

 

Average

Yield /

Rate

 

 

Average

Balance(5)

 

 

Interest

Inc / Exp

 

 

Average

Yield /

Rate

 

ASSETS

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cash and cash equivalents

 

$

39,500

 

 

$

21

 

 

 

0.22

%

 

$

38,624

 

 

$

220

 

 

 

2.25

%

Loans and leases(1)

 

 

4,340,388

 

 

 

53,441

 

 

 

4.90

%

 

 

3,807,731

 

 

 

58,203

 

 

 

6.06

%

Taxable securities

 

 

1,364,980

 

 

 

5,555

 

 

 

1.62

%

 

 

1,025,975

 

 

 

6,963

 

 

 

2.69

%

Tax-exempt securities(2)

 

 

168,878

 

 

 

1,148

 

 

 

2.71

%

 

 

84,640

 

 

 

669

 

 

 

3.14

%

Total interest-earning assets

 

$

5,913,746

 

 

$

60,165

 

 

 

4.05

%

 

$

4,956,970

 

 

$

66,055

 

 

 

5.29

%

Allowance for loan and lease losses

 

 

(63,891

)

 

 

 

 

 

 

 

 

 

 

(32,688

)

 

 

 

 

 

 

 

 

All other assets

 

 

550,766

 

 

 

 

 

 

 

 

 

 

 

502,764

 

 

 

 

 

 

 

 

 

TOTAL ASSETS

 

$

6,400,621

 

 

 

 

 

 

 

 

 

 

$

5,427,046

 

 

 

 

 

 

 

 

 

LIABILITIES AND STOCKHOLDERS’

   EQUITY

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Deposits

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest checking

 

$

578,520

 

 

$

287

 

 

 

0.20

%

 

$

399,065

 

 

$

612

 

 

 

0.61

%

Money market accounts

 

 

1,152,012

 

 

 

444

 

 

 

0.15

%

 

 

790,565

 

 

 

1,945

 

 

 

0.98

%

Savings

 

 

554,633

 

 

 

66

 

 

 

0.05

%

 

 

474,394

 

 

 

63

 

 

 

0.05

%

Time deposits

 

 

802,409

 

 

 

1,017

 

 

 

0.50

%

 

 

1,231,641

 

 

 

6,705

 

 

 

2.16

%

Total interest-bearing

   deposits

 

 

3,087,574

 

 

 

1,814

 

 

 

0.23

%

 

 

2,895,665

 

 

 

9,325

 

 

 

1.28

%

Other borrowings

 

 

577,309

 

 

 

480

 

 

 

0.33

%

 

 

414,515

 

 

 

1,989

 

 

 

1.90

%

Subordinated notes and debentures

 

 

109,704

 

 

 

1,611

 

 

 

5.84

%

 

 

37,254

 

 

 

687

 

 

 

7.32

%

Total borrowings

 

 

687,013

 

 

 

2,091

 

 

 

1.21

%

 

 

451,769

 

 

 

2,676

 

 

 

2.35

%

Total interest-bearing liabilities

 

$

3,774,587

 

 

$

3,905

 

 

 

0.41

%

 

$

3,347,434

 

 

$

12,001

 

 

 

1.42

%

Non-interest-bearing demand deposits

 

 

1,761,902

 

 

 

 

 

 

 

 

 

 

 

1,288,960

 

 

 

 

 

 

 

 

 

Other liabilities

 

 

58,539

 

 

 

 

 

 

 

 

 

 

 

44,907

 

 

 

 

 

 

 

 

 

Total stockholders’ equity

 

 

805,593

 

 

 

 

 

 

 

 

 

 

 

745,745

 

 

 

 

 

 

 

 

 

TOTAL LIABILITIES AND

   STOCKHOLDERS’ EQUITY

 

$

6,400,621

 

 

 

 

 

 

 

 

 

 

$

5,427,046

 

 

 

 

 

 

 

 

 

Net interest spread(3)

 

 

 

 

 

 

 

 

 

 

3.64

%

 

 

 

 

 

 

 

 

 

 

3.87

%

Net interest income, fully taxable equivalent

 

 

 

 

 

$

56,260

 

 

 

 

 

 

 

 

 

 

$

54,054

 

 

 

 

 

Net interest margin, fully taxable equivalent(2)(4)

 

 

 

 

 

 

 

 

 

 

3.78

%

 

 

 

 

 

 

 

 

 

 

4.33

%

Tax-equivalent adjustment

 

 

 

 

 

 

(240

)

 

 

0.01

%

 

 

 

 

 

 

(140

)

 

 

0.01

%

Net interest income

 

 

 

 

 

$

56,020

 

 

 

 

 

 

 

 

 

 

$

53,914

 

 

 

 

 

Net interest margin(4)

 

 

 

 

 

 

 

 

 

 

3.77

%

 

 

 

 

 

 

 

 

 

 

4.32

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net loan accretion impact on margin

 

 

 

 

 

$

2,304

 

 

 

0.16

%

 

 

 

 

 

$

5,418

 

 

 

0.43

%

 

 

(1)

Loan and lease balances are net of deferred origination fees and costs and initial indirect costs.  Non-accrual loans and leases are included in total loan and lease balances.

 

(2)

Interest income and rates include the effects of a tax equivalent adjustment to adjust tax exempt investment income on tax exempt investment securities to a fully taxable basis, assuming a federal income tax rate of 21%.

 

(3)

Represents the average rate earned on interest-earning assets minus the average rate paid on interest-bearing liabilities.

 

(4)

Represents net interest income (annualized) divided by total average earning assets.

 

(5)

Average balances are average daily balances.


 


Byline Bancorp, Inc.

Page 19 of 22

 

BYLINE BANCORP, INC. AND SUBSIDIARIES

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

 

 

 

For the Year Ended December 31,

 

 

 

2020

 

 

2019

 

(dollars in thousands)

 

Average

Balance(5)

 

 

Interest

Inc / Exp

 

 

Average

Yield /

Rate

 

 

Average

Balance(5)

 

 

Interest

Inc / Exp

 

 

Average

Yield /

Rate

 

ASSETS

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cash and cash equivalents

 

$

46,508

 

 

$

228

 

 

 

0.49

%

 

$

43,636

 

 

$

1,018

 

 

 

2.33

%

Loans and leases(1)

 

 

4,196,708

 

 

 

208,788

 

 

 

4.98

%

 

 

3,741,607

 

 

 

235,501

 

 

 

6.29

%

Taxable securities

 

 

1,287,480

 

 

 

27,233

 

 

 

2.12

%

 

 

981,453

 

 

 

26,509

 

 

 

2.70

%

Tax-exempt securities(2)

 

 

128,664

 

 

 

3,773

 

 

 

2.93

%

 

 

71,173

 

 

 

2,260

 

 

 

3.18

%

Total interest-earning assets

 

$

5,659,360

 

 

$

240,022

 

 

 

4.24

%

 

$

4,837,869

 

 

$

265,288

 

 

 

5.48

%

Allowance for loan and lease losses

 

 

(48,688

)

 

 

 

 

 

 

 

 

 

 

(29,650

)

 

 

 

 

 

 

 

 

All other assets

 

 

529,471

 

 

 

 

 

 

 

 

 

 

 

468,823

 

 

 

 

 

 

 

 

 

TOTAL ASSETS

 

$

6,140,143

 

 

 

 

 

 

 

 

 

 

$

5,277,042

 

 

 

 

 

 

 

 

 

LIABILITIES AND STOCKHOLDERS’

   EQUITY

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Deposits

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest checking

 

$

469,418

 

 

$

938

 

 

 

0.20

%

 

$

346,329

 

 

$

2,002

 

 

 

0.58

%

Money market accounts

 

 

1,132,978

 

 

 

4,238

 

 

 

0.37

%

 

 

709,379

 

 

 

7,111

 

 

 

1.00

%

Savings

 

 

520,472

 

 

 

252

 

 

 

0.05

%

 

 

474,709

 

 

 

434

 

 

 

0.09

%

Time deposits

 

 

940,165

 

 

 

11,196

 

 

 

1.19

%

 

 

1,244,070

 

 

 

26,778

 

 

 

2.15

%

Total interest-bearing

   deposits

 

 

3,063,033

 

 

 

16,624

 

 

 

0.54

%

 

 

2,774,487

 

 

 

36,325

 

 

 

1.31

%

Other borrowings

 

 

542,937

 

 

 

3,318

 

 

 

0.61

%

 

 

477,144

 

 

 

9,255

 

 

 

1.94

%

Subordinated notes and debentures

 

 

72,188

 

 

 

4,310

 

 

 

5.97

%

 

 

37,037

 

 

 

2,949

 

 

 

7.96

%

Total borrowings

 

 

615,125

 

 

 

7,628

 

 

 

1.24

%

 

 

514,181

 

 

 

12,204

 

 

 

2.37

%

Total interest-bearing liabilities

 

$

3,678,158

 

 

$

24,252

 

 

 

0.66

%

 

$

3,288,668

 

 

$

48,529

 

 

 

1.48

%

Non-interest-bearing demand deposits

 

 

1,624,754

 

 

 

 

 

 

 

 

 

 

 

1,238,410

 

 

 

 

 

 

 

 

 

Other liabilities

 

 

52,653

 

 

 

 

 

 

 

 

 

 

 

41,764

 

 

 

 

 

 

 

 

 

Total stockholders’ equity

 

 

784,578

 

 

 

 

 

 

 

 

 

 

 

708,200

 

 

 

 

 

 

 

 

 

TOTAL LIABILITIES AND

   STOCKHOLDERS’ EQUITY

 

$

6,140,143

 

 

 

 

 

 

 

 

 

 

$

5,277,042

 

 

 

 

 

 

 

 

 

Net interest spread(3)

 

 

 

 

 

 

 

 

 

 

3.58

%

 

 

 

 

 

 

 

 

 

 

4.00

%

Net interest income, fully taxable equivalent

 

 

 

 

 

$

215,770

 

 

 

 

 

 

 

 

 

 

$

216,759

 

 

 

 

 

Net interest margin, fully taxable equivalent(2)(4)

 

 

 

 

 

 

 

 

 

 

3.81

%

 

 

 

 

 

 

 

 

 

 

4.48

%

Tax-equivalent adjustment

 

 

 

 

 

 

(792

)

 

 

0.01

%

 

 

 

 

 

 

(474

)

 

 

0.01

%

Net interest income

 

 

 

 

 

$

214,978

 

 

 

 

 

 

 

 

 

 

$

216,285

 

 

 

 

 

Net interest margin(4)

 

 

 

 

 

 

 

 

 

 

3.80

%

 

 

 

 

 

 

 

 

 

 

4.47

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net loan accretion impact on margin

 

 

 

 

 

$

13,058

 

 

 

0.23

%

 

 

 

 

 

$

23,190

 

 

 

0.48

%

 

 

(1)

Loan and lease balances are net of deferred origination fees and costs and initial indirect costs.  Non-accrual loans and leases are included in total loan and lease balances.

 

(2)

Interest income and rates include the effects of a tax equivalent adjustment to adjust tax exempt investment income on tax exempt investment securities to a fully taxable basis, assuming a federal income tax rate of 21%.

 

(3)

Represents the average rate earned on interest-earning assets minus the average rate paid on interest-bearing liabilities.

 

(4)

Represents net interest income (annualized) divided by total average earning assets.

 

(5)

Average balances are average daily balances.

 


 


Byline Bancorp, Inc.

Page 20 of 22

 

BYLINE BANCORP, INC. AND SUBSIDIARIES

RECONCILIATION OF NON-GAAP FINANCIAL MEASURES (unaudited)

 

 

 

As of or For the Three Months Ended

 

 

As of or For the Year Ended

 

(dollars in thousands, except per share data)

 

December 31,

2020

 

 

September 30,

2020

 

 

June 30,

2020

 

 

March 31,

2020

 

 

December 31,

2019

 

 

December 31,

2020

 

 

December 31,

2019

 

Net income and earnings per share

   excluding significant items

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Reported Net Income

 

$

12,291

 

 

$

13,071

 

 

$

9,139

 

 

$

2,966

 

 

$

15,852

 

 

$

37,467

 

 

$

57,002

 

Significant items:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Impairment charges on assets held for sale

 

 

4,022

 

 

 

32

 

 

 

 

 

 

715

 

 

 

111

 

 

 

4,769

 

 

 

570

 

Merger-related expense

 

 

 

 

 

 

 

 

 

 

 

 

 

 

127

 

 

 

 

 

 

4,340

 

Core system conversion expense

 

 

 

 

 

 

 

 

 

 

 

 

 

 

48

 

 

 

 

 

 

2,049

 

Tax benefit on impairment charges and

   merger-related expenses

 

 

(1,120

)

 

 

(9

)

 

 

 

 

 

(199

)

 

 

(79

)

 

 

(1,328

)

 

 

(1,830

)

Adjusted Net Income

 

$

15,193

 

 

$

13,094

 

 

$

9,139

 

 

$

3,482

 

 

$

16,059

 

 

$

40,908

 

 

$

62,131

 

Reported Diluted Earnings per Share

 

$

0.31

 

 

$

0.34

 

 

$

0.24

 

 

$

0.07

 

 

$

0.41

 

 

$

0.96

 

 

$

1.48

 

Significant items:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Impairment charges on assets held for sale

 

 

0.10

 

 

 

 

 

 

 

 

 

0.02

 

 

 

 

 

 

0.12

 

 

 

0.01

 

Merger-related expense

 

 

 

 

 

 

 

 

 

 

 

 

 

 

0.01

 

 

 

 

 

 

0.12

 

Core system conversion expense

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

0.05

 

Tax benefit on impairment charges and

   merger-related expenses

 

 

(0.03

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(0.03

)

 

 

(0.04

)

Adjusted Diluted Earnings per Share

 

$

0.38

 

 

$

0.34

 

 

$

0.24

 

 

$

0.09

 

 

$

0.42

 

 

$

1.05

 

 

$

1.62

 

 

 


Byline Bancorp, Inc.

Page 21 of 22

 

 

BYLINE BANCORP, INC. AND SUBSIDIARIES

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

 

 

As of or For the Three Months Ended

 

 

As of or For the Year Ended

 

(dollars in thousands, except per share data,

   ratios annualized, where applicable)

 

December 31,

2020

 

 

September 30,

2020

 

 

June 30,

2020

 

 

March 31,

2020

 

 

December 31,

2019

 

 

December 31,

2020

 

 

December 31,

2019

 

Adjusted non-interest expense:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Non-interest expense

 

$

47,021

 

 

$

41,687

 

 

$

37,053

 

 

$

43,661

 

 

$

43,720

 

 

$

169,422

 

 

$

173,830

 

Less: Significant items

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Impairment charges on assets held for sale

 

 

4,022

 

 

 

32

 

 

 

 

 

 

715

 

 

 

111

 

 

 

4,769

 

 

 

570

 

Merger-related expense

 

 

 

 

 

 

 

 

 

 

 

 

 

 

127

 

 

 

 

 

 

4,340

 

Core system conversion expense

 

 

 

 

 

 

 

 

 

 

 

 

 

 

48

 

 

 

 

 

 

2,049

 

Adjusted non-interest expense

 

$

42,999

 

 

$

41,655

 

 

$

37,053

 

 

$

42,946

 

 

$

43,434

 

 

$

164,653

 

 

$

166,871

 

Adjusted non-interest expense excluding

   amortization of intangible assets:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Adjusted non-interest expense

 

$

42,999

 

 

$

41,655

 

 

$

37,053

 

 

$

42,946

 

 

$

43,434

 

 

$

164,653

 

 

$

166,871

 

Less: Amortization of intangible assets

 

 

1,892

 

 

 

1,947

 

 

 

1,892

 

 

 

1,893

 

 

 

2,002

 

 

 

7,624

 

 

 

7,737

 

Adjusted non-interest expense excluding

   amortization of intangible assets

 

$

41,107

 

 

$

39,708

 

 

$

35,161

 

 

$

41,053

 

 

$

41,432

 

 

$

157,029

 

 

$

159,134

 

Pre-tax pre-provision net income:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Pre-tax income

 

$

16,453

 

 

$

18,331

 

 

$

12,867

 

 

$

4,016

 

 

$

20,349

 

 

$

51,667

 

 

$

77,295

 

Add: Provision for loan and lease losses

 

 

10,236

 

 

 

15,740

 

 

 

15,518

 

 

 

14,455

 

 

 

4,387

 

 

 

55,949

 

 

 

20,708

 

Pre-tax pre-provision net income

 

$

26,689

 

 

$

34,071

 

 

$

28,385

 

 

$

18,471

 

 

$

24,736

 

 

$

107,616

 

 

$

98,003

 

Adjusted pre-tax pre-provision net income:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Pre-tax pre-provision net income

 

$

26,689

 

 

$

34,071

 

 

$

28,385

 

 

$

18,471

 

 

$

24,736

 

 

$

107,616

 

 

$

98,003

 

Impairment charges on assets held for sale

 

 

4,022

 

 

 

32

 

 

 

 

 

 

715

 

 

 

111

 

 

 

4,769

 

 

 

570

 

Merger-related expense

 

 

 

 

 

 

 

 

 

 

 

 

 

 

127

 

 

 

 

 

 

4,340

 

Core system conversion expense

 

 

 

 

 

 

 

 

 

 

 

 

 

 

48

 

 

 

 

 

 

2,049

 

Adjusted pre-tax pre-provision net income

 

$

30,711

 

 

$

34,103

 

 

$

28,385

 

 

$

19,186

 

 

$

25,022

 

 

$

112,385

 

 

$

104,962

 

Tax Equivalent Net Interest Income

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net interest income

 

$

56,020

 

 

$

53,524

 

 

$

52,609

 

 

$

52,825

 

 

$

53,914

 

 

$

214,978

 

 

$

216,285

 

Add: Tax-equivalent adjustment

 

 

240

 

 

 

222

 

 

 

188

 

 

 

142

 

 

 

140

 

 

 

792

 

 

 

474

 

Net interest income, fully taxable equivalent

 

$

56,260

 

 

$

53,746

 

 

$

52,797

 

 

$

52,967

 

 

$

54,054

 

 

$

215,770

 

 

$

216,759

 

Total revenues:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net interest income

 

$

56,020

 

 

$

53,524

 

 

$

52,609

 

 

$

52,825

 

 

$

53,914

 

 

$

214,978

 

 

$

216,285

 

Add: Non-interest income

 

 

17,690

 

 

 

22,234

 

 

 

12,829

 

 

 

9,307

 

 

 

14,542

 

 

 

62,060

 

 

 

55,548

 

Total revenues

 

$

73,710

 

 

$

75,758

 

 

$

65,438

 

 

$

62,132

 

 

$

68,456

 

 

$

277,038

 

 

$

271,833

 

Tangible common stockholders' equity:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total stockholders' equity

 

$

805,464

 

 

$

794,696

 

 

$

780,935

 

 

$

762,667

 

 

$

750,115

 

 

$

805,464

 

 

$

750,115

 

Less: Preferred stock

 

 

10,438

 

 

 

10,438

 

 

 

10,438

 

 

 

10,438

 

 

 

10,438

 

 

 

10,438

 

 

 

10,438

 

Less: Goodwill and other intangibles

 

 

172,631

 

 

 

174,523

 

 

 

176,470

 

 

 

178,362

 

 

 

180,255

 

 

 

172,631

 

 

 

180,255

 

Tangible common stockholders' equity

 

$

622,395

 

 

$

609,735

 

 

$

594,027

 

 

$

573,867

 

 

$

559,422

 

 

$

622,395

 

 

$

559,422

 

Tangible assets:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total assets

 

$

6,390,652

 

 

$

6,496,513

 

 

$

6,393,518

 

 

$

5,734,754

 

 

$

5,521,809

 

 

$

6,390,652

 

 

$

5,521,809

 

Less: Goodwill and other intangibles

 

 

172,631

 

 

 

174,523

 

 

 

176,470

 

 

 

178,362

 

 

 

180,255

 

 

 

172,631

 

 

 

180,255

 

Tangible assets

 

$

6,218,021

 

 

$

6,321,990

 

 

$

6,217,048

 

 

$

5,556,392

 

 

$

5,341,554

 

 

$

6,218,021

 

 

$

5,341,554

 

Average tangible common stockholders' equity:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Average total stockholders' equity

 

$

805,593

 

 

$

791,111

 

 

$

775,879

 

 

$

765,427

 

 

$

745,745

 

 

$

784,578

 

 

$

708,200

 

Less: Average preferred stock

 

 

10,438

 

 

 

10,438

 

 

 

10,438

 

 

 

10,438

 

 

 

10,438

 

 

 

10,438

 

 

 

10,438

 

Less: Average goodwill and other

   intangibles

 

 

173,536

 

 

 

175,443

 

 

 

177,440

 

 

 

179,416

 

 

 

179,192

 

 

 

176,448

 

 

 

174,091

 

Average tangible common stockholders' equity

 

$

621,619

 

 

$

605,230

 

 

$

588,001

 

 

$

575,573

 

 

$

556,115

 

 

$

597,692

 

 

$

523,671

 

Average tangible assets:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Average total assets

 

$

6,400,621

 

 

$

6,401,290

 

 

$

6,186,974

 

 

$

5,565,952

 

 

$

5,427,046

 

 

$

6,140,143

 

 

$

5,277,042

 

Less: Average goodwill and other

   intangibles

 

 

173,536

 

 

 

175,443

 

 

 

177,440

 

 

 

179,416

 

 

 

179,192

 

 

 

176,448

 

 

 

174,091

 

Average tangible assets

 

$

6,227,085

 

 

$

6,225,847

 

 

$

6,009,534

 

 

$

5,386,536

 

 

$

5,247,854

 

 

$

5,963,695

 

 

$

5,102,951

 

Tangible net income available to common

   stockholders:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net income available to common stockholders

 

$

12,095

 

 

$

12,875

 

 

$

8,944

 

 

$

2,770

 

 

$

15,656

 

 

$

36,684

 

 

$

56,219

 

Add: After-tax intangible asset amortization

 

 

1,365

 

 

 

1,405

 

 

 

1,365

 

 

 

1,366

 

 

 

1,444

 

 

 

5,501

 

 

 

5,582

 

Tangible net income available to common

   stockholders

 

$

13,460

 

 

$

14,280

 

 

$

10,309

 

 

$

4,136

 

 

$

17,100

 

 

$

42,185

 

 

$

61,801

 

Adjusted tangible net income available to common stockholders:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Tangible net income available to common

   stockholders

 

$

13,460

 

 

$

14,280

 

 

$

10,309

 

 

$

4,136

 

 

$

17,100

 

 

$

42,185

 

 

$

61,801

 

Impairment charges on assets held for sale

 

 

4,022

 

 

 

32

 

 

 

 

 

 

715

 

 

 

111

 

 

 

4,769

 

 

 

570

 

Merger-related expense

 

 

 

 

 

 

 

 

 

 

 

 

 

 

127

 

 

 

 

 

 

4,340

 

Core system conversion expense

 

 

 

 

 

 

 

 

 

 

 

 

 

 

48

 

 

 

 

 

 

2,049

 

Tax benefit on significant items

 

 

(1,120

)

 

 

(9

)

 

 

 

 

 

(199

)

 

 

(79

)

 

 

(1,328

)

 

 

(1,830

)

Adjusted tangible net income available to

   common stockholders

 

$

16,362

 

 

$

14,303

 

 

$

10,309

 

 

$

4,652

 

 

$

17,307

 

 

$

45,626

 

 

$

66,930

 

 


Byline Bancorp, Inc.

Page 22 of 22

 

 

BYLINE BANCORP, INC. AND SUBSIDIARIES

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

 

 

 

As of or For the Three Months Ended

 

 

As of or For the Year Ended

 

(dollars in thousands, except share and per share

   data, ratios annualized, where applicable)

 

December 31,

2020

 

 

September 30,

2020

 

 

June 30,

2020

 

 

March 31,

2020

 

 

December 31,

2019

 

 

December 31,

2020

 

 

December 31,

2019

 

Pre-tax pre-provision return on average assets:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Pre-tax pre-provision net income

 

$

26,689

 

 

$

34,071

 

 

$

28,385

 

 

$

18,471

 

 

$

24,736

 

 

$

107,616

 

 

$

98,003

 

Average total assets

 

 

6,400,621

 

 

 

6,401,290

 

 

 

6,186,974

 

 

 

5,565,952

 

 

 

5,427,046

 

 

 

6,140,143

 

 

 

5,277,042

 

Pre-tax pre-provision return on average assets

 

 

1.66

%

 

 

2.12

%

 

 

1.85

%

 

 

1.33

%

 

 

1.81

%

 

 

1.75

%

 

 

1.86

%

Adjusted pre-tax pre-provision return on average

   assets:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Adjusted pre-tax pre-provision net income

 

$

30,711

 

 

$

34,103

 

 

$

28,385

 

 

$

19,186

 

 

$

25,022

 

 

$

112,385

 

 

$

104,962

 

Average total assets

 

 

6,400,621

 

 

 

6,401,290

 

 

 

6,186,974

 

 

 

5,565,952

 

 

 

5,427,046

 

 

 

6,140,143

 

 

 

5,277,042

 

Adjusted pre-tax pre-provision return on average

   assets

 

 

1.91

%

 

 

2.12

%

 

 

1.85

%

 

 

1.39

%

 

 

1.83

%

 

 

1.83

%

 

 

1.99

%

Net interest margin, fully taxable equivalent

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net interest income, fully taxable equivalent

 

$

56,260

 

 

$

53,746

 

 

$

52,797

 

 

$

52,967

 

 

$

54,054

 

 

$

215,770

 

 

$

216,759

 

Total average interest-earning assets

 

 

5,913,746

 

 

 

5,916,554

 

 

 

5,703,569

 

 

 

5,097,946

 

 

 

4,956,970

 

 

 

5,659,360

 

 

 

4,837,869

 

Net interest margin, fully taxable equivalent

 

 

3.78

%

 

 

3.61

%

 

 

3.72

%

 

 

4.18

%

 

 

4.33

%

 

 

3.81

%

 

 

4.48

%

Non-interest income to total revenues:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Non-interest income

 

$

17,690

 

 

$

22,234

 

 

$

12,829

 

 

$

9,307

 

 

$

14,542

 

 

$

62,060

 

 

$

55,548

 

Total revenues

 

 

73,710

 

 

 

75,758

 

 

 

65,438

 

 

 

62,132

 

 

 

68,456

 

 

 

277,038

 

 

 

271,833

 

Non-interest income to total revenues

 

 

24.00

%

 

 

29.35

%

 

 

19.61

%

 

 

14.98

%

 

 

21.24

%

 

 

22.40

%

 

 

20.43

%

Adjusted non-interest expense to average assets:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Adjusted non-interest expense

 

$

42,999

 

 

$

41,655

 

 

$

37,053

 

 

$

42,946

 

 

$

43,434

 

 

$

164,653

 

 

$

166,871

 

Average total assets

 

 

6,400,621

 

 

 

6,401,290

 

 

 

6,186,974

 

 

 

5,565,952

 

 

 

5,427,046

 

 

 

6,140,143

 

 

 

5,277,042

 

Adjusted non-interest expense to average assets

 

 

2.67

%

 

 

2.59

%

 

 

2.41

%

 

 

3.10

%

 

 

3.18

%

 

 

2.68

%

 

 

3.16

%

Adjusted efficiency ratio:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Adjusted non-interest expense excluding

   amortization of intangible assets

 

$

41,107

 

 

$

39,708

 

 

$

35,161

 

 

$

41,053

 

 

$

41,432

 

 

$

157,029

 

 

$

159,134

 

Total revenues

 

 

73,710

 

 

 

75,758

 

 

 

65,438

 

 

 

62,132

 

 

 

68,456

 

 

 

277,038

 

 

 

271,833

 

Adjusted efficiency ratio

 

 

55.77

%

 

 

52.42

%

 

 

53.73

%

 

 

66.08

%

 

 

60.52

%

 

 

56.68

%

 

 

58.84

%

Adjusted return on average assets:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Adjusted net income

 

$

15,193

 

 

$

13,094

 

 

$

9,139

 

 

$

3,482

 

 

$

16,059

 

 

$

40,908

 

 

$

62,131

 

Average total assets

 

 

6,400,621

 

 

 

6,401,290

 

 

 

6,186,974

 

 

 

5,565,952

 

 

 

5,427,046

 

 

 

6,140,143

 

 

 

5,277,042

 

Adjusted return on average assets

 

 

0.94

%

 

 

0.81

%

 

 

0.59

%

 

 

0.25

%

 

 

1.17

%

 

 

0.67

%

 

 

1.18

%

Adjusted return on average stockholders' equity:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Adjusted net income

 

$

15,193

 

 

$

13,094

 

 

$

9,139

 

 

$

3,482

 

 

$

16,059

 

 

$

40,908

 

 

$

62,131

 

Average stockholders' equity

 

 

805,593

 

 

 

791,111

 

 

 

775,879

 

 

 

765,427

 

 

 

745,745

 

 

 

784,578

 

 

 

708,200

 

Adjusted return on average stockholders' equity

 

 

7.50

%

 

 

6.58

%

 

 

4.74

%

 

 

1.83

%

 

 

8.54

%

 

 

5.21

%

 

 

8.77

%

Tangible common equity to tangible assets:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Tangible common equity

 

$

622,395

 

 

$

609,735

 

 

$

594,027

 

 

$

573,867

 

 

$

559,422

 

 

$

622,395

 

 

$

559,422

 

Tangible assets

 

 

6,218,021

 

 

 

6,321,990

 

 

 

6,217,048

 

 

 

5,556,392

 

 

 

5,341,554

 

 

 

6,218,021

 

 

 

5,341,554

 

Tangible common equity to tangible assets

 

 

10.01

%

 

 

9.64

%

 

 

9.55

%

 

 

10.33

%

 

 

10.47

%

 

 

10.01

%

 

 

10.47

%

Return on average tangible common stockholders'

   equity:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Tangible net income available to common

   stockholders

 

$

13,460

 

 

$

14,280

 

 

$

10,309

 

 

$

4,136

 

 

$

17,100

 

 

$

42,185

 

 

$

61,801

 

Average tangible common stockholders' equity

 

 

621,619

 

 

 

605,230

 

 

 

588,001

 

 

 

575,573

 

 

 

556,115

 

 

 

597,692

 

 

 

523,671

 

Return on average tangible common

   stockholders' equity

 

 

8.61

%

 

 

9.39

%

 

 

7.05

%

 

 

2.89

%

 

 

12.20

%

 

 

7.06

%

 

 

11.80

%

Adjusted return on average tangible common

   stockholders' equity:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Adjusted tangible net income available to common

   stockholders

 

$

16,362

 

 

$

14,303

 

 

$

10,309

 

 

$

4,652

 

 

$

17,307

 

 

$

45,626

 

 

$

66,930

 

Average tangible common stockholders' equity

 

 

621,619

 

 

 

605,230

 

 

 

588,001

 

 

 

575,573

 

 

 

556,115

 

 

 

597,692

 

 

 

523,671

 

Adjusted return on average tangible common

   stockholders' equity

 

 

10.47

%

 

 

9.40

%

 

 

7.05

%

 

 

3.25

%

 

 

12.35

%

 

 

7.63

%

 

 

12.78

%

Tangible book value per share:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Tangible common equity

 

$

622,395

 

 

$

609,735

 

 

$

594,027

 

 

$

573,867

 

 

$

559,422

 

 

$

622,395

 

 

$

559,422

 

Common shares outstanding

 

 

38,618,054

 

 

 

38,568,916

 

 

 

38,383,217

 

 

 

38,383,021

 

 

 

38,256,500

 

 

 

38,618,054

 

 

 

38,256,500

 

Tangible book value per share

 

$

16.12

 

 

$

15.81

 

 

$

15.47

 

 

$

14.95

 

 

$

14.62

 

 

$

16.12

 

 

$

14.62

 

 

 

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DE 001-38139 36-3012593 180 North LaSalle Street Suite 300 Chicago IL 60601 773 244-7000 false false false false Common Stock BY NYSE true false XML 8 R1.htm IDEA: XBRL DOCUMENT v3.20.4
Document and Entity Information
Jan. 28, 2021
Cover [Abstract]  
Document Type 8-K
Amendment Flag false
Document Period End Date Jan. 28, 2021
Entity Registrant Name BYLINE BANCORP, INC.
Entity Central Index Key 0001702750
Entity Emerging Growth Company true
Entity Ex Transition Period false
Entity File Number 001-38139
Entity Incorporation, State or Country Code DE
Entity Tax Identification Number 36-3012593
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
Written Communications false
Soliciting Material false
Pre-commencement Tender Offer false
Pre-commencement Issuer Tender Offer false
Title of each class Common Stock
Trading Symbol BY
Name of each exchange on which registered NYSE
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