Select Full Year 2021 Financial Highlights
- Net income of $92.8 million, or $2.40 per diluted share
- Net interest margin of 3.84%
- Return on average assets of 1.40%
- Efficiency ratio of 57.27%
- Originated loans and leases increased $425.9 million, or 11.6%
- Non-interest-bearing deposits increased $395.7 million, or 22.5%
- Top SBA lender for Illinois and Wisconsin for the eighth consecutive year
- Returned $40.3 million capital to common stockholders through dividends and share repurchases
Select Fourth Quarter 2021 Financial Highlights
- Net income of $17.2 million, or $0.45 per diluted share
- Total revenue1 of $80.7 million, including $61.7 million net interest income and $19.0 million non-interest income
- Net interest margin of 3.96%
- Return on average assets of 1.02%, as adjusted1 1.56%
- Total loan and lease production of $313.7 million
- Common Equity Tier 1 to risk weighted assets of 11.39%
Byline Bancorp, Inc. ("Byline", the “Company”, "we", "our", or "us")(NYSE: BY), the parent company of Byline Bank (the “Bank”), today reported net income of $17.2 million, or $0.45 per diluted share, for the fourth quarter of 2021, compared with net income of $25.3 million, or $0.66 per diluted share, for the third quarter of 2021, and net income of $12.3 million, or $0.31 per diluted share, for the fourth quarter 2020. Adjusted net income1 was $26.3 million, or $0.69 per adjusted diluted share, for the fourth quarter of 2021, compared with $26.4 million, or $0.69 per adjusted diluted share1, for the third quarter of 2021, and $15.2 million, or $0.38 per adjusted diluted share, for the fourth quarter of 2020.
Roberto R. Herencia, Executive Chairman and Chief Executive Officer of Byline Bancorp, commented, “A lot has changed in the last year, and our fourth quarter and full year results highlight the value of our diversified business model, which allowed us to deliver strong results for our shareholders. This was an extraordinary year for the Byline franchise that brought both challenges and opportunities. I’m proud of how we came together to support our customers and communities while consistently executing on our strategic plan to drive organic loan and deposit growth resulting in a higher level of profitability. As we look ahead, I’m confident in our ability to create shareholder value as we continue to invest in talent and technology to drive revenue growth and efficiency improvement. We remain well positioned to support our continued growth and I want to thank all our employees for being flexible, for being resilient, and for bringing our core values to life for the benefit of our customers every day.”
Alberto J. Paracchini, President of Byline Bancorp, added, “We ended 2021 on a good note as our fourth quarter results were supported by continued strong inflows of commercial non-interest bearing deposits and annualized loan and lease growth of 6.6%, excluding PPP loans. During the quarter we announced the consolidation of six branch locations and the disposition of real estate in efforts to adapt to changes in customer behavior and improve operating efficiencies. During 2021, we returned $40.3 million of capital to shareholders through common dividends and share repurchases. As we moved through the year, we saw a favorable shift in our mix of earning assets and produced record earnings for the company. As we enter this new year in a strong position, we believe we continue to have a healthy loan pipeline and our focus remains on supporting new and existing customers, executing our strategy, and growing the value of our franchise.”
Board Approves Redemption of Series B Preferred Stock
On January 25, 2022, the Company's Board of Directors approved the redemption of all of the outstanding shares of the Company’s 7.50% fixed-to-floating, noncumulative perpetual preferred stock, Series B ("Series B Preferred Stock"), on March 31, 2022. The Company currently has 10,438 shares of Series B Preferred Stock, with a liquidation of preference of $1,000 per share, plus any declared and unpaid dividends from any prior dividend period.
Board Declares Cash Dividend of $0.09 per Share
On January 25, 2022, the Company's Board of Directors declared a cash dividend of $0.09 per share, payable on February 22, 2022, to stockholders of record of the Company's common stock as of February 8, 2022.
Consolidation of Six Branches and Disposal of Real Estate
On December 10, 2021 Byline announced plans to continue to optimize its branch network, dispose of a portfolio of owned real estate properties and reduce the amount of office square footage it occupies as part of its efforts to adapt to changes in customer behavior and improve operating efficiencies. Byline Bank plans to consolidate six of its 44 full-service branches during the second quarter of 2022. The Company also plans to dispose of a real estate portfolio that includes former branch locations and other properties and reduce the amount of office square footage it occupies to accommodate current trends in remote working preferences. The impact of the branch consolidations and the strategic real estate reduction is expected to result in total charges of approximately $15.0 million, of which $13.0 million were incurred during the fourth quarter 2021, with the remainder to be incurred during the first half of 2022, and expects to generate approximately $5.3 million in annualized cost savings. We expect to reinvest approximately 70% of the anticipated annualized cost savings into talent and technology that will further enhance our digital banking capabilities.
(1) |
Represents non-GAAP financial measures. See “Reconciliation of non-GAAP Financial Measures” for a reconciliation of our non-GAAP measures to the most directly comparable GAAP financial measure. |
STATEMENTS OF OPERATIONS
Net Interest Income
The following table presents net interest income for the periods indicated:
|
|
|
|
|
|
|
|
|
|
|
December 31, 2021 |
|||||||||
|
|
Three Months Ended |
|
|
Change from |
|||||||||||||||
|
|
December 31, |
|
September 30, |
|
December 31, |
|
|
September 30, |
|
December 31, |
|||||||||
(dollars in thousands) |
|
2021 |
|
2021 |
|
2020 |
|
|
2021 |
|
2020 |
|||||||||
INTEREST AND DIVIDEND INCOME |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Interest and fees on loans and leases |
|
$ |
58,570 |
|
|
$ |
56,291 |
|
|
$ |
53,441 |
|
|
|
4.0 |
% |
|
|
9.6 |
% |
Interest on securities |
|
|
5,619 |
|
|
|
5,534 |
|
|
|
6,252 |
|
|
|
1.5 |
% |
|
|
(10.1 |
)% |
Other interest and dividend income |
|
|
495 |
|
|
|
947 |
|
|
|
232 |
|
|
|
(47.8 |
)% |
|
|
113.2 |
% |
Total interest and dividend income |
|
|
64,684 |
|
|
|
62,772 |
|
|
|
59,925 |
|
|
|
3.0 |
% |
|
|
7.9 |
% |
INTEREST EXPENSE |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Deposits |
|
|
1,037 |
|
|
|
986 |
|
|
|
1,814 |
|
|
|
5.2 |
% |
|
|
(42.8 |
)% |
Other borrowings |
|
|
330 |
|
|
|
349 |
|
|
|
480 |
|
|
|
(5.8 |
)% |
|
|
(31.4 |
)% |
Subordinated notes and debentures |
|
|
1,589 |
|
|
|
1,592 |
|
|
|
1,611 |
|
|
|
(0.2 |
)% |
|
|
(1.4 |
)% |
Total interest expense |
|
|
2,956 |
|
|
|
2,927 |
|
|
|
3,905 |
|
|
|
1.0 |
% |
|
|
(24.3 |
)% |
Net interest income |
|
$ |
61,728 |
|
|
$ |
59,845 |
|
|
$ |
56,020 |
|
|
|
3.1 |
% |
|
|
10.2 |
% |
The following table presents the average interest-earning assets and average interest-bearing liabilities for the periods indicated. Net interest income and margin are adjusted to reflect tax-exempt interest income on a tax-equivalent basis using tax rates effective as of the end of the period:
|
|
For the Three Months Ended |
|
|||||||||||||||||||||
|
|
December 31, 2021 |
|
September 30, 2021 |
||||||||||||||||||||
(dollars in thousands) |
|
Average
|
|
Interest
|
|
Average
|
|
Average
|
|
Interest
|
|
Average
|
||||||||||||
ASSETS |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Cash and cash equivalents |
|
$ |
106,170 |
|
|
$ |
42 |
|
|
|
0.16 |
% |
|
$ |
40,088 |
|
|
$ |
19 |
|
|
|
0.19 |
% |
Loans and leases(1) |
|
|
4,610,608 |
|
|
|
58,570 |
|
|
|
5.04 |
% |
|
|
4,539,111 |
|
|
|
56,291 |
|
|
|
4.92 |
% |
Taxable securities |
|
|
1,288,969 |
|
|
|
5,111 |
|
|
|
1.57 |
% |
|
|
1,309,802 |
|
|
|
5,472 |
|
|
|
1.66 |
% |
Tax-exempt securities(2) |
|
|
184,015 |
|
|
|
1,217 |
|
|
|
2.62 |
% |
|
|
187,064 |
|
|
|
1,254 |
|
|
|
2.66 |
% |
Total interest-earning assets |
|
$ |
6,189,762 |
|
|
$ |
64,940 |
|
|
|
4.16 |
% |
|
$ |
6,076,065 |
|
|
$ |
63,036 |
|
|
|
4.12 |
% |
Allowance for loan and lease losses |
|
|
(59,144 |
) |
|
|
|
|
|
|
|
|
(61,528 |
) |
|
|
|
|
|
|
||||
All other assets |
|
|
568,451 |
|
|
|
|
|
|
|
|
|
546,331 |
|
|
|
|
|
|
|
||||
TOTAL ASSETS |
|
$ |
6,699,069 |
|
|
|
|
|
|
|
|
$ |
6,560,868 |
|
|
|
|
|
|
|
||||
LIABILITIES AND STOCKHOLDERS’ EQUITY |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Deposits |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Interest checking |
|
$ |
659,841 |
|
|
$ |
236 |
|
|
|
0.14 |
% |
|
$ |
653,543 |
|
|
$ |
228 |
|
|
|
0.14 |
% |
Money market accounts |
|
|
1,089,398 |
|
|
|
345 |
|
|
|
0.13 |
% |
|
|
1,031,009 |
|
|
|
280 |
|
|
|
0.11 |
% |
Savings |
|
|
633,469 |
|
|
|
75 |
|
|
|
0.05 |
% |
|
|
625,037 |
|
|
|
75 |
|
|
|
0.05 |
% |
Time deposits |
|
|
688,154 |
|
|
|
381 |
|
|
|
0.22 |
% |
|
|
709,805 |
|
|
|
403 |
|
|
|
0.23 |
% |
Total interest-bearing deposits |
|
|
3,070,862 |
|
|
|
1,037 |
|
|
|
0.13 |
% |
|
|
3,019,394 |
|
|
|
986 |
|
|
|
0.13 |
% |
Other borrowings |
|
|
385,787 |
|
|
|
330 |
|
|
|
0.34 |
% |
|
|
426,284 |
|
|
|
349 |
|
|
|
0.33 |
% |
Subordinated notes and debentures |
|
|
110,341 |
|
|
|
1,589 |
|
|
|
5.71 |
% |
|
|
110,195 |
|
|
|
1,592 |
|
|
|
5.73 |
% |
Total borrowings |
|
|
496,128 |
|
|
|
1,919 |
|
|
|
1.53 |
% |
|
|
536,479 |
|
|
|
1,941 |
|
|
|
1.44 |
% |
Total interest-bearing liabilities |
|
$ |
3,566,990 |
|
|
$ |
2,956 |
|
|
|
0.33 |
% |
|
$ |
3,555,873 |
|
|
$ |
2,927 |
|
|
|
0.33 |
% |
Non-interest-bearing demand deposits |
|
|
2,222,583 |
|
|
|
|
|
|
|
|
|
2,106,189 |
|
|
|
|
|
|
|
||||
Other liabilities |
|
|
70,521 |
|
|
|
|
|
|
|
|
|
75,052 |
|
|
|
|
|
|
|
||||
Total stockholders’ equity |
|
|
838,975 |
|
|
|
|
|
|
|
|
|
823,754 |
|
|
|
|
|
|
|
||||
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY |
|
$ |
6,699,069 |
|
|
|
|
|
|
|
|
$ |
6,560,868 |
|
|
|
|
|
|
|
||||
Net interest spread(3) |
|
|
|
|
|
|
|
|
3.83 |
% |
|
|
|
|
|
|
|
|
3.79 |
% |
||||
Net interest income, fully taxable equivalent |
|
|
|
|
$ |
61,984 |
|
|
|
|
|
|
|
|
$ |
60,109 |
|
|
|
|
||||
Net interest margin, fully taxable equivalent(2)(4) |
|
|
|
|
|
|
|
|
3.97 |
% |
|
|
|
|
|
|
|
|
3.92 |
% |
||||
Tax-equivalent adjustment |
|
|
|
|
|
(256 |
) |
|
|
0.01 |
% |
|
|
|
|
|
(264 |
) |
|
|
0.01 |
% |
||
Net interest income |
|
|
|
|
$ |
61,728 |
|
|
|
|
|
|
|
|
$ |
59,845 |
|
|
|
|
||||
Net interest margin(4) |
|
|
|
|
|
|
|
|
3.96 |
% |
|
|
|
|
|
|
|
|
3.91 |
% |
||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Net loan accretion impact on margin |
|
|
|
|
$ |
1,450 |
|
|
|
0.09 |
% |
|
|
|
|
$ |
1,638 |
|
|
|
0.11 |
% |
||
(1) |
Loan and lease balances are net of deferred origination fees and costs and initial indirect costs. Non-accrual loans and leases are included in total loan and lease balances. |
|
(2) |
Interest income and rates include the effects of a tax equivalent adjustment to adjust tax exempt investment income on tax exempt investment securities to a fully taxable basis, assuming a federal income tax rate of 21%. |
|
(3) |
Represents the average rate earned on interest-earning assets minus the average rate paid on interest-bearing liabilities. |
|
(4) |
Represents net interest income (annualized) divided by total average earning assets. |
|
(5) |
Average balances are average daily balances. |
Net interest income for the fourth quarter of 2021 was $61.7 million, an increase of $1.9 million, or 3.1%, from the third quarter of 2021.
The increase in net interest income was primarily due to:
- An increase of $2.3 million in interest income on loans and leases, due to higher balances and yields on loans and leases.
Partially offset by:
- A decrease of $452,000 in other interest and dividend income due to lower dividends on equity investments.
Tax-equivalent net interest margin for the fourth quarter of 2021 was 3.97%, an increase of five basis points compared to the third quarter of 2021. Total net accretion income on acquired loans contributed nine basis points to the net interest margin for the fourth quarter of 2021 compared to 11 basis points for the third quarter of 2021, a decrease of two basis points. PPP loan interest income and net fee income combined contributed $4.5 million to net interest income for the fourth quarter of 2021 compared to $5.4 million for the third quarter of 2021.
The average cost of total deposits was 0.08% for the fourth quarter of 2021, flat compared to the third quarter of 2021. Average non-interest-bearing demand deposits increased $116.4 million, while average money market account deposits increased by $58.4 million. Average non-interest-bearing demand deposits were 42.0% of average total deposits for the fourth quarter of 2021 compared to 41.1% during the third quarter of 2021.
Provision for Loan and Lease Losses
The provision for loan and lease losses was a recapture of $1.3 million for the fourth quarter of 2021, a decrease of $1.6 million compared to a provision of $352,000 for the third quarter of 2021. The recapture of provision during the fourth quarter of 2021 was mainly driven by a decrease in non-performing loans and leases, and changes in qualitative factors due to continuing economic improvement.
Non-interest Income
The following table presents the components of non-interest income for the periods indicated:
|
|
Three Months Ended |
|
|
December 31, 2021
|
|||||||||||||||
|
|
December 31, |
|
September 30, |
|
December 31, |
|
September 30, |
|
December 31, |
||||||||||
(dollars in thousands) |
|
2021 |
|
2021 |
|
2020 |
|
2021 |
|
2020 |
||||||||||
NON-INTEREST INCOME |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Fees and service charges on deposits |
|
$ |
1,955 |
|
|
$ |
1,867 |
|
|
$ |
1,740 |
|
|
|
4.7 |
% |
|
|
12.4 |
% |
Loan servicing revenue |
|
|
3,392 |
|
|
|
3,344 |
|
|
|
2,645 |
|
|
|
1.4 |
% |
|
|
28.2 |
% |
Loan servicing asset revaluation |
|
|
(2,510 |
) |
|
|
(2,650 |
) |
|
|
(2,298 |
) |
|
|
(5.3 |
)% |
|
|
9.2 |
% |
ATM and interchange fees |
|
|
1,219 |
|
|
|
1,201 |
|
|
|
1,076 |
|
|
|
1.6 |
% |
|
|
13.3 |
% |
Net realized gains (losses) on securities available-for-sale |
|
|
(21 |
) |
|
|
130 |
|
|
|
2,889 |
|
|
NM |
|
|
NM |
|
||
Change in fair value of equity securities, net |
|
|
(98 |
) |
|
|
(275 |
) |
|
|
428 |
|
|
|
(64.6 |
)% |
|
NM |
|
|
Net gains on sales of loans |
|
|
12,924 |
|
|
|
12,761 |
|
|
|
9,449 |
|
|
|
1.3 |
% |
|
|
36.8 |
% |
Wealth management and trust income |
|
|
764 |
|
|
|
815 |
|
|
|
710 |
|
|
|
(6.4 |
)% |
|
|
7.5 |
% |
Other non-interest income |
|
|
1,389 |
|
|
|
1,302 |
|
|
|
1,051 |
|
|
|
6.7 |
% |
|
|
32.1 |
% |
Total non-interest income |
|
$ |
19,014 |
|
|
$ |
18,495 |
|
|
$ |
17,690 |
|
|
|
2.8 |
% |
|
|
7.5 |
% |
Non-interest income for the fourth quarter of 2021 was $19.0 million, an increase of $519,000, or 2.8%, compared to $18.5 million for the third quarter of 2021.
The increase in total non-interest income was primarily due to:
- An increase of $178,000 in the fair value of equity securities, net, due to changes in the market value of securities; and
- An increase of $162,000 in net gains on sales of loans due to higher volume of loans sold.
Partially offset by:
- A decrease in net realized losses on securities available-for-sale of $152,000 due to sales of securities.
During the fourth quarter of 2021, we sold $113.9 million of U.S. government guaranteed loans compared to $104.2 million during the third quarter of 2021.
Non-interest Expense
The following table presents the components of non-interest expense for the periods indicated:
|
|
Three Months Ended |
|
December 31, 2021
|
||||||||||||||||
|
|
December 31, |
|
September 30, |
|
December 31, |
|
September 30, |
|
December 31, |
||||||||||
(dollars in thousands) |
|
2021 |
|
2021 |
|
2020 |
|
2021 |
|
2020 |
||||||||||
NON-INTEREST EXPENSE |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Salaries and employee benefits |
|
$ |
28,850 |
|
|
$ |
25,978 |
|
|
$ |
22,559 |
|
|
|
11.1 |
% |
|
|
27.9 |
% |
Occupancy and equipment expense, net |
|
|
4,995 |
|
|
|
4,982 |
|
|
|
6,854 |
|
|
|
0.3 |
% |
|
|
(27.1 |
)% |
Loan and lease related expenses |
|
|
2,328 |
|
|
|
1,175 |
|
|
|
1,324 |
|
|
|
98.1 |
% |
|
|
75.8 |
% |
Legal, audit and other professional fees |
|
|
2,376 |
|
|
|
2,710 |
|
|
|
1,336 |
|
|
|
(12.4 |
)% |
|
|
77.8 |
% |
Data processing |
|
|
3,070 |
|
|
|
3,108 |
|
|
|
2,748 |
|
|
|
(1.2 |
)% |
|
|
11.7 |
% |
Net loss recognized on other real estate owned and other related expenses |
|
|
26 |
|
|
|
42 |
|
|
|
495 |
|
|
|
(39.1 |
)% |
|
|
(94.8 |
)% |
Other intangible assets amortization expense |
|
|
1,738 |
|
|
|
1,738 |
|
|
|
1,892 |
|
|
|
— |
|
|
|
(8.2 |
)% |
Other non-interest expense |
|
|
15,585 |
|
|
|
4,447 |
|
|
|
9,813 |
|
|
|
250.6 |
% |
|
|
58.8 |
% |
Total non-interest expense |
|
$ |
58,968 |
|
|
$ |
44,180 |
|
|
$ |
47,021 |
|
|
|
33.5 |
% |
|
|
25.4 |
% |
Non-interest expense for the fourth quarter of 2021 was $59.0 million, an increase of $14.8 million, or 33.5%, from $44.2 million for the third quarter of 2021.
The increase in total non-interest expense was primarily due to:
- An increase of $11.1 million in other non-interest expense mainly due to $8.4 million of impairment charges on assets held for sale and $4.1 million on branch consolidation charges; and
- An increase of $2.9 million in salaries and employee benefits mainly related to increases in salary expense of $499,000 with new additional hires, increase of $1.5 million in commissions and incentive expense, and $573,000 related to branch consolidation charges; and
- An increase of $1.2 million in loan and lease related expenses mainly related to higher expenses associated with originations of government guaranteed loans.
Our efficiency ratio was 70.88% for the fourth quarter of 2021 compared to 54.18% for the third quarter of 2021. Excluding asset impairment charges, our adjusted efficiency ratio1 was 55.46% for the fourth quarter of 2021, compared with 52.35% for the third quarter of 2021.
(1) |
Represents non-GAAP financial measures. See “Reconciliation of non-GAAP Financial Measures” for a reconciliation of our non-GAAP measures to the most directly comparable GAAP financial measure. |
INCOME TAXES
We recorded income tax expense of $5.9 million during the fourth quarter of 2021, compared to $8.5 million during the third quarter of 2021. The effective tax rate was 25.5% and 25.1% for the fourth quarter and third quarter of 2021, respectively.
STATEMENTS OF FINANCIAL CONDITION
Total assets were $6.7 billion at December 31, 2021, a decrease of $8.3 million compared to $6.7 billion at September 30, 2021.
The current quarter decrease was primarily due to:
- A decrease in net loans and leases of $66.5 million due to PPP forgiveness.
Partially offset by:
- An increase in securities available for sale of $26.9 million due to purchases of securities.
The following table shows our allocation of the originated, acquired impaired, and acquired non-impaired loans and leases at the dates indicated:
|
|
December 31, 2021 |
|
September 30, 2021 |
|
December 31, 2020 |
||||||||||||||||||
(dollars in thousands) |
|
Amount |
|
% of Total |
|
Amount |
|
% of Total |
|
Amount |
|
% of Total |
||||||||||||
Originated loans and leases |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Commercial real estate |
|
$ |
1,379,000 |
|
|
|
30.4 |
% |
|
$ |
1,298,454 |
|
|
|
28.2 |
% |
|
$ |
1,017,587 |
|
|
|
23.5 |
% |
Residential real estate |
|
|
379,796 |
|
|
|
8.4 |
% |
|
|
387,578 |
|
|
|
8.4 |
% |
|
|
414,220 |
|
|
|
9.6 |
% |
Construction, land development, and other land |
|
|
323,886 |
|
|
|
7.1 |
% |
|
|
336,460 |
|
|
|
7.3 |
% |
|
|
226,408 |
|
|
|
5.2 |
% |
Commercial and industrial |
|
|
1,534,745 |
|
|
|
33.8 |
% |
|
|
1,480,076 |
|
|
|
32.1 |
% |
|
|
1,276,527 |
|
|
|
29.4 |
% |
Paycheck Protection Program |
|
|
123,712 |
|
|
|
2.7 |
% |
|
|
268,081 |
|
|
|
5.8 |
% |
|
|
517,815 |
|
|
|
11.9 |
% |
Installment and other |
|
|
940 |
|
|
|
0.0 |
% |
|
|
998 |
|
|
|
0.0 |
% |
|
|
1,267 |
|
|
|
0.0 |
% |
Leasing financing receivables |
|
|
352,247 |
|
|
|
7.8 |
% |
|
|
331,149 |
|
|
|
7.2 |
% |
|
|
214,636 |
|
|
|
4.9 |
% |
Total originated loans and leases |
|
$ |
4,094,326 |
|
|
|
90.2 |
% |
|
$ |
4,102,796 |
|
|
|
89.0 |
% |
|
$ |
3,668,460 |
|
|
|
84.5 |
% |
Acquired impaired loans |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Commercial real estate |
|
$ |
72,160 |
|
|
|
1.6 |
% |
|
$ |
84,821 |
|
|
|
1.8 |
% |
|
$ |
108,484 |
|
|
|
2.5 |
% |
Residential real estate |
|
|
49,401 |
|
|
|
1.1 |
% |
|
|
61,893 |
|
|
|
1.3 |
% |
|
|
78,840 |
|
|
|
1.9 |
% |
Construction, land development, and other land |
|
|
1,312 |
|
|
|
0.0 |
% |
|
|
1,746 |
|
|
|
0.1 |
% |
|
|
4,113 |
|
|
|
0.1 |
% |
Commercial and industrial |
|
|
4,014 |
|
|
|
0.1 |
% |
|
|
6,651 |
|
|
|
0.1 |
% |
|
|
10,178 |
|
|
|
0.2 |
% |
Installment and other |
|
|
164 |
|
|
|
0.0 |
% |
|
|
169 |
|
|
|
0.0 |
% |
|
|
202 |
|
|
|
0.0 |
% |
Total acquired impaired loans |
|
$ |
127,051 |
|
|
|
2.8 |
% |
|
$ |
155,280 |
|
|
|
3.3 |
% |
|
$ |
201,817 |
|
|
|
4.7 |
% |
Acquired non-impaired loans and leases |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Commercial real estate |
|
$ |
214,588 |
|
|
|
4.7 |
% |
|
$ |
235,103 |
|
|
|
5.1 |
% |
|
$ |
295,599 |
|
|
|
6.8 |
% |
Residential real estate |
|
|
51,317 |
|
|
|
1.1 |
% |
|
|
58,283 |
|
|
|
1.3 |
% |
|
|
79,211 |
|
|
|
1.8 |
% |
Construction, land development, and other land |
|
|
201 |
|
|
|
0.1 |
% |
|
|
206 |
|
|
|
0.0 |
% |
|
|
212 |
|
|
|
0.0 |
% |
Commercial and industrial |
|
|
43,202 |
|
|
|
1.0 |
% |
|
|
49,678 |
|
|
|
1.1 |
% |
|
|
82,195 |
|
|
|
1.9 |
% |
Installment and other |
|
|
264 |
|
|
|
0.0 |
% |
|
|
275 |
|
|
|
0.0 |
% |
|
|
536 |
|
|
|
0.0 |
% |
Leasing financing receivables |
|
|
6,179 |
|
|
|
0.1 |
% |
|
|
7,607 |
|
|
|
0.2 |
% |
|
|
12,505 |
|
|
|
0.3 |
% |
Total acquired non-impaired loans and leases |
|
$ |
315,751 |
|
|
|
7.0 |
% |
|
$ |
351,152 |
|
|
|
7.7 |
% |
|
$ |
470,258 |
|
|
|
10.8 |
% |
Total loans and leases |
|
$ |
4,537,128 |
|
|
|
100.0 |
% |
|
$ |
4,609,228 |
|
|
|
100.0 |
% |
|
$ |
4,340,535 |
|
|
|
100.0 |
% |
Allowance for loan and lease losses |
|
|
(55,012 |
) |
|
|
|
|
|
(60,598 |
) |
|
|
|
|
|
(66,347 |
) |
|
|
|
|||
Total loans and leases, net of allowance for loan and lease losses |
|
$ |
4,482,116 |
|
|
|
|
|
$ |
4,548,630 |
|
|
|
|
|
$ |
4,274,188 |
|
|
|
|
|||
Paycheck Protection Program
The following table presents the net PPP loans outstanding as of December 31, 2021:
|
|
PPP Loans Outstanding |
||||||||||
(dollars in thousands) |
|
First Round |
|
Second Round |
|
Total |
||||||
Principal outstanding |
|
$ |
3,637 |
|
|
$ |
123,547 |
|
|
$ |
127,184 |
|
Unearned processing fee |
|
|
(46 |
) |
|
|
(4,303 |
) |
|
|
(4,349 |
) |
Deferred cost |
|
|
11 |
|
|
|
866 |
|
|
|
877 |
|
PPP loans, net |
|
$ |
3,602 |
|
|
$ |
120,110 |
|
|
$ |
123,712 |
|
Number of loans outstanding |
|
|
62 |
|
|
|
710 |
|
|
|
772 |
|
|
|
|
|
|
|
|
|
|
|
|||
Forgiven |
|
|
97.1 |
% |
|
|
67.5 |
% |
|
|
87.0 |
% |
In review or submission process |
|
|
0.3 |
% |
|
|
7.7 |
% |
|
|
2.8 |
% |
Not applied for forgiveness |
|
|
2.6 |
% |
|
|
24.8 |
% |
|
|
10.2 |
% |
PPP loans decreased by $144.4 million in the fourth quarter of 2021 primarily as a result of forgiveness of PPP loans. Forgiveness for the fourth quarter 2021 was $160.3 million compared to $202.4 million for the third quarter of 2021.
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, 2021
|
|||||||||
(dollars in thousands) |
|
December 31,
|
|
September 30,
|
|
December 31,
|
|
September 30,
|
|
December 31,
|
||||||||||
Non-performing assets: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Non-accrual loans and leases |
|
$ |
23,130 |
|
|
$ |
34,465 |
|
|
$ |
41,103 |
|
|
|
(32.9 |
)% |
|
|
(43.7 |
)% |
Past due loans and leases 90 days or more and still accruing interest |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
—% |
|
|
—% |
|
||
Total non-performing loans and leases |
|
$ |
23,130 |
|
|
$ |
34,465 |
|
|
$ |
41,103 |
|
|
|
(32.9 |
)% |
|
|
(43.7 |
)% |
Other real estate owned |
|
|
2,112 |
|
|
|
3,033 |
|
|
|
6,350 |
|
|
|
(30.4 |
)% |
|
|
(66.7 |
)% |
Total non-performing assets |
|
$ |
25,242 |
|
|
$ |
37,498 |
|
|
$ |
47,453 |
|
|
|
(32.7 |
)% |
|
|
(46.8 |
)% |
Accruing troubled debt restructured loans (1) |
|
$ |
1,927 |
|
|
$ |
2,366 |
|
|
$ |
2,495 |
|
|
|
(18.5 |
)% |
|
|
(22.8 |
)% |
Total non-performing loans and leases as a percentage of total loans and leases |
|
|
0.51 |
% |
|
|
0.75 |
% |
|
|
0.95 |
% |
|
|
|
|
|
|
||
Total non-performing assets as a percentage of total assets |
|
|
0.38 |
% |
|
|
0.56 |
% |
|
|
0.74 |
% |
|
|
|
|
|
|
||
Allowance for loan and lease losses as a percentage of non-performing loans and leases |
|
|
237.84 |
% |
|
|
175.82 |
% |
|
|
161.42 |
% |
|
|
|
|
|
|
||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Non-performing assets guaranteed by U.S. government: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Non-accrual loans guaranteed |
|
$ |
3,270 |
|
|
$ |
6,326 |
|
|
$ |
3,645 |
|
|
|
(48.3 |
)% |
|
|
(10.3 |
)% |
Past due loans 90 days or more and still accruing interest guaranteed |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
—% |
|
|
—% |
|
||
Total non-performing loans guaranteed |
|
$ |
3,270 |
|
|
$ |
6,326 |
|
|
$ |
3,645 |
|
|
|
(48.3 |
)% |
|
|
(10.3 |
)% |
Accruing troubled debt restructured loans guaranteed (1) |
|
$ |
— |
|
|
$ |
— |
|
|
$ |
— |
|
|
—% |
|
|
—% |
|
||
Total non-performing loans and leases not guaranteed as a percentage of total loans and leases |
|
|
0.44 |
% |
|
|
0.61 |
% |
|
|
0.86 |
% |
|
|
|
|
|
|
||
Total non-performing assets not guaranteed as a percentage of total assets |
|
|
0.33 |
% |
|
|
0.46 |
% |
|
|
0.69 |
% |
|
|
|
|
|
|
||
(1) |
Accruing troubled debt restructured loans are not included in total non-performing loans and leases or in non-performing assets. |
Variances in non-performing assets were:
- Non-performing loans and leases were $23.1 million at December 31, 2021, a decrease of $11.3 million from $34.5 million at September 30, 2021 primarily due to payoffs and resolutions; and
- Other real estate owned was $2.1 million at December 31, 2021, a decrease of $921,000 from $3.0 million at September 30, 2021 due to sales.
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) |
|
2021 |
|
2021 |
|
2020 |
||||||
Allowance for loan and lease losses, beginning of period |
|
$ |
60,598 |
|
|
$ |
61,719 |
|
|
$ |
61,258 |
|
Provision/(recapture) for loan and lease losses |
|
|
(1,293 |
) |
|
|
352 |
|
|
|
10,236 |
|
Net charge-offs of loans and leases |
|
|
(4,293 |
) |
|
|
(1,473 |
) |
|
|
(5,147 |
) |
Allowance for loan and lease losses, end of period |
|
$ |
55,012 |
|
|
$ |
60,598 |
|
|
$ |
66,347 |
|
|
|
|
|
|
|
|
|
|
|
|||
Allowance for loan and lease losses to period end total loans and leases held for investment |
|
|
1.21 |
% |
|
|
1.31 |
% |
|
|
1.53 |
% |
Net charge-offs (annualized) to average loans and leases outstanding during the period |
|
|
0.37 |
% |
|
|
0.13 |
% |
|
|
0.47 |
% |
Provision/(recapture) for loan and lease losses to net charge-offs during the period |
|
(0.30) |
x |
|
|
0.24 |
x |
|
|
1.99 |
x |
|
The allowance for loan and lease losses as a percentage of total loans and leases held for investment decreased to 1.21% at December 31, 2021 compared to 1.31% at September 30, 2021. The allowance for loan and lease losses as a percentage of total loans and leases held for investment excluding PPP loans decreased to 1.25% at December 31, 2021 from 1.40% at September 30, 2021.
In June 2016, the Financial Accounting Standards Board (“FASB”) issued new guidance on the recognition of credit losses, otherwise known as "CECL", which replaces the incurred loss impairment methodology with a methodology that reflects current expected credit losses. In November 2019, the FASB delayed the effective date of the standard for smaller reporting companies, which includes emerging growth companies. Assuming we remain an emerging growth company, the Company anticipates adopting the standard on December 31, 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 2021 were $4.3 million, or 0.37% of average loans and leases, on an annualized basis, an increase of $2.8 million compared to $1.5 million, or 0.13% of average loans and leases, during the third quarter of 2021, and a decrease of $854,000 from $5.1 million or 0.47% of average loans and leases from the comparable period a year ago.
Net charge-offs for the fourth quarter of 2021 included $1.5 million in the unguaranteed portion of U.S. government guaranteed loans, while net charge-offs for the third quarter of 2021 and fourth quarter of 2020 included $1.3 million and $5.0 million, respectively, in the unguaranteed portion of U.S. government guaranteed loans.
Deposits and Other Liabilities
The following table presents the composition of deposits at the dates indicated:
|
|
|
|
|
|
|
|
|
|
|
December 31, 2021
|
|||||||||
(dollars in thousands) |
|
December 31,
|
|
September 30,
|
|
December 31,
|
|
September 30,
|
|
December 31,
|
||||||||||
Non-interest-bearing demand deposits |
|
$ |
2,158,420 |
|
|
$ |
2,117,749 |
|
|
$ |
1,762,676 |
|
|
|
1.9 |
% |
|
|
22.5 |
% |
Interest-bearing checking accounts |
|
|
572,426 |
|
|
|
652,824 |
|
|
|
494,424 |
|
|
|
(12.3 |
)% |
|
|
15.8 |
% |
Money market demand accounts |
|
|
1,106,272 |
|
|
|
1,057,419 |
|
|
|
1,142,709 |
|
|
|
4.6 |
% |
|
|
(3.2 |
)% |
Other savings |
|
|
638,218 |
|
|
|
627,294 |
|
|
|
564,700 |
|
|
|
1.7 |
% |
|
|
13.0 |
% |
Time deposits (below $250,000) |
|
|
532,589 |
|
|
|
553,364 |
|
|
|
600,810 |
|
|
|
(3.8 |
)% |
|
|
(11.4 |
)% |
Time deposits ($250,000 and above) |
|
|
147,122 |
|
|
|
149,628 |
|
|
|
186,712 |
|
|
|
(1.7 |
)% |
|
|
(21.2 |
)% |
Total deposits |
|
$ |
5,155,047 |
|
|
$ |
5,158,278 |
|
|
$ |
4,752,031 |
|
|
|
(0.1 |
)% |
|
|
8.5 |
% |
Total deposits remained at $5.2 billion at December 31, 2021 compared to September 30, 2021. Non-interest-bearing deposits were 41.9% and 41.1% of total deposits at December 31, 2021 and September 30, 2021, respectively.
The decrease in the current quarter was primarily due to:
- A decrease in interest bearing checking deposits of $80.4 million primarily due to decreases in public funds deposits.
Partially offset by:
- An increase in non-interest-bearing deposits of $40.7 million, due to increases in consumer deposits; and
- An increase in money market demand accounts of $48.9 million, principally driven by business accounts.
Total borrowings and other liabilities were $704.7 million at December 31, 2021, a decrease of $17.1 million from $721.8 million at September 30, 2021, primarily driven by the repayment of the Paycheck Protection Program Liquidity Facility of $156.4 million, offset by increases in Federal Home Loan Bank advances of $135.0 million.
Stockholders’ Equity
Total stockholders’ equity was $836.4 million at December 31, 2021, an increase of $12.0 million from $824.4 million at September 30, 2021. The increase was primarily due to an increase in retained earnings, offset by a decrease in the fair value of available-for-sale securities.
Under its stock repurchase program, the Company repurchased an aggregate 1,331,708 shares at an average price of $21.68 during 2021. The Company did not repurchase any shares during the fourth quarter.
The following table presents actual regulatory capital dollar amounts and ratios of the Company and Byline Bank as of December 31, 2021:
|
|
Actual |
|
Minimum Capital
|
|
Required to be
|
||||||||||||||||||
December 31, 2021 |
|
Amount |
|
Ratio |
|
Amount |
|
Ratio |
|
Amount |
|
Ratio |
||||||||||||
Total capital to risk weighted assets: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Company |
|
$ |
830,262 |
|
|
|
14.70 |
% |
|
$ |
451,903 |
|
|
|
8.00 |
% |
|
N/A |
|
|
N/A |
|
||
Bank |
|
|
753,480 |
|
|
|
13.38 |
% |
|
|
450,470 |
|
|
|
8.00 |
% |
|
$ |
563,087 |
|
|
|
10.00 |
% |
Tier 1 capital to risk weighted assets: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Company |
|
$ |
698,846 |
|
|
|
12.37 |
% |
|
$ |
338,927 |
|
|
|
6.00 |
% |
|
N/A |
|
|
N/A |
|
||
Bank |
|
$ |
697,064 |
|
|
|
12.38 |
% |
|
|
337,852 |
|
|
|
6.00 |
% |
|
$ |
450,470 |
|
|
|
8.00 |
% |
Common Equity Tier 1 (CET1) to risk weighted assets: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Company |
|
$ |
643,408 |
|
|
|
11.39 |
% |
|
$ |
254,195 |
|
|
|
4.50 |
% |
|
N/A |
|
|
N/A |
|
||
Bank |
|
|
697,064 |
|
|
|
12.38 |
% |
|
|
253,389 |
|
|
|
4.50 |
% |
|
$ |
366,007 |
|
|
|
6.50 |
% |
Tier 1 capital to average assets: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Company |
|
$ |
698,846 |
|
|
|
10.89 |
% |
|
$ |
256,657 |
|
|
|
4.00 |
% |
|
N/A |
|
|
N/A |
|
||
Bank |
|
|
697,064 |
|
|
|
10.87 |
% |
|
|
256,478 |
|
|
|
4.00 |
% |
|
$ |
320,597 |
|
|
|
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.
Conference Call, Webcast and Slide Presentation
We will host a conference call and webcast at 9:00 a.m. Central Time on Friday, January 28, 2022 to discuss our quarterly financial results. Analysts and investors may participate in the question-and-answer session. The call can be accessed via telephone at (844) 200-6205; passcode 337883. A recorded replay can be accessed through February 11, 2022 by dialing (866) 813-9403; passcode: 531731.
A slide presentation relating to our fourth quarter 2021 results will be accessible prior to the conference call. The slide presentation and webcast of the conference call can be accessed on our investor relations website at www.bylinebancorp.com.
About Byline Bancorp, Inc.
Headquartered in Chicago, Byline Bancorp, Inc. is the parent company for Byline Bank, a full service commercial bank serving small- and medium-sized businesses, financial sponsors, and consumers. Byline Bank has approximately $6.7 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.
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. Deterioration in general business and economic conditions, including 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, and 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 our Annual Report on Form 10-K and other reports we file with the Securities and Exchange Commission, including among other things under the heading “Risk Factors” in our Annual Report on Form 10-K for the year ended December 31, 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.
BYLINE BANCORP, INC. AND SUBSIDIARIES |
||||||||||||||||||||
CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION (unaudited) |
||||||||||||||||||||
|
|
December 31, |
|
September 30, |
|
June 30, |
|
March 31, |
|
December 31, |
||||||||||
(dollars in thousands) |
|
2021 |
|
2021 |
|
2021 |
|
2021 |
|
2020 |
||||||||||
ASSETS |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Cash and due from banks |
|
$ |
35,247 |
|
|
$ |
46,900 |
|
|
$ |
50,558 |
|
|
$ |
47,101 |
|
|
$ |
41,432 |
|
Interest bearing deposits with other banks |
|
|
122,684 |
|
|
|
95,978 |
|
|
|
52,138 |
|
|
|
66,038 |
|
|
|
41,988 |
|
Cash and cash equivalents |
|
|
157,931 |
|
|
|
142,878 |
|
|
|
102,696 |
|
|
|
113,139 |
|
|
|
83,420 |
|
Equity and other securities, at fair value |
|
|
10,578 |
|
|
|
10,299 |
|
|
|
10,575 |
|
|
|
8,557 |
|
|
|
8,764 |
|
Securities available-for-sale, at fair value |
|
|
1,454,542 |
|
|
|
1,427,605 |
|
|
|
1,495,789 |
|
|
|
1,675,907 |
|
|
|
1,447,230 |
|
Securities held-to-maturity, at amortized cost |
|
|
3,885 |
|
|
|
3,887 |
|
|
|
3,890 |
|
|
|
3,892 |
|
|
|
4,395 |
|
Restricted stock, at cost |
|
|
22,002 |
|
|
|
15,927 |
|
|
|
11,927 |
|
|
|
19,057 |
|
|
|
10,507 |
|
Loans held for sale |
|
|
64,460 |
|
|
|
48,372 |
|
|
|
25,046 |
|
|
|
28,584 |
|
|
|
7,924 |
|
Loans and leases: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Loans and leases |
|
|
4,537,128 |
|
|
|
4,609,228 |
|
|
|
4,469,457 |
|
|
|
4,454,620 |
|
|
|
4,340,535 |
|
Allowance for loan and lease losses |
|
|
(55,012 |
) |
|
|
(60,598 |
) |
|
|
(61,719 |
) |
|
|
(65,590 |
) |
|
|
(66,347 |
) |
Net loans and leases |
|
|
4,482,116 |
|
|
|
4,548,630 |
|
|
|
4,407,738 |
|
|
|
4,389,030 |
|
|
|
4,274,188 |
|
Servicing assets, at fair value |
|
|
23,744 |
|
|
|
23,597 |
|
|
|
24,683 |
|
|
|
22,140 |
|
|
|
22,042 |
|
Premises and equipment, net |
|
|
62,548 |
|
|
|
76,995 |
|
|
|
80,482 |
|
|
|
85,182 |
|
|
|
86,728 |
|
Other real estate owned, net |
|
|
2,112 |
|
|
|
3,033 |
|
|
|
4,417 |
|
|
|
5,952 |
|
|
|
6,350 |
|
Goodwill and other intangible assets, net |
|
|
165,558 |
|
|
|
167,296 |
|
|
|
169,034 |
|
|
|
170,882 |
|
|
|
172,631 |
|
Bank-owned life insurance |
|
|
80,039 |
|
|
|
60,992 |
|
|
|
60,628 |
|
|
|
60,258 |
|
|
|
10,009 |
|
Deferred tax assets, net |
|
|
50,329 |
|
|
|
45,165 |
|
|
|
43,127 |
|
|
|
48,662 |
|
|
|
40,181 |
|
Accrued interest receivable and other assets |
|
|
116,328 |
|
|
|
129,775 |
|
|
|
100,570 |
|
|
|
118,883 |
|
|
|
216,283 |
|
Total assets |
|
$ |
6,696,172 |
|
|
$ |
6,704,451 |
|
|
$ |
6,540,602 |
|
|
$ |
6,750,125 |
|
|
$ |
6,390,652 |
|
LIABILITIES AND STOCKHOLDERS’ EQUITY |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
LIABILITIES |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Non-interest-bearing demand deposits |
|
$ |
2,158,420 |
|
|
$ |
2,117,749 |
|
|
$ |
2,089,455 |
|
|
$ |
2,015,643 |
|
|
$ |
1,762,676 |
|
Interest-bearing deposits |
|
|
2,996,627 |
|
|
|
3,040,529 |
|
|
|
3,002,740 |
|
|
|
3,008,897 |
|
|
|
2,989,355 |
|
Total deposits |
|
|
5,155,047 |
|
|
|
5,158,278 |
|
|
|
5,092,195 |
|
|
|
5,024,540 |
|
|
|
4,752,031 |
|
Other borrowings |
|
|
519,723 |
|
|
|
539,119 |
|
|
|
446,836 |
|
|
|
749,719 |
|
|
|
647,901 |
|
Subordinated notes, net |
|
|
73,517 |
|
|
|
73,473 |
|
|
|
73,429 |
|
|
|
73,386 |
|
|
|
73,342 |
|
Junior subordinated debentures issued to capital trusts, net |
|
|
36,906 |
|
|
|
36,796 |
|
|
|
36,682 |
|
|
|
36,565 |
|
|
|
36,451 |
|
Accrued expenses and other liabilities |
|
|
74,597 |
|
|
|
72,367 |
|
|
|
74,387 |
|
|
|
72,120 |
|
|
|
75,463 |
|
Total liabilities |
|
|
5,859,790 |
|
|
|
5,880,033 |
|
|
|
5,723,529 |
|
|
|
5,956,330 |
|
|
|
5,585,188 |
|
STOCKHOLDERS’ EQUITY |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Preferred stock |
|
|
10,438 |
|
|
|
10,438 |
|
|
|
10,438 |
|
|
|
10,438 |
|
|
|
10,438 |
|
Common stock |
|
|
387 |
|
|
|
386 |
|
|
|
385 |
|
|
|
385 |
|
|
|
384 |
|
Additional paid-in capital |
|
|
593,753 |
|
|
|
592,192 |
|
|
|
590,422 |
|
|
|
589,209 |
|
|
|
587,165 |
|
Retained earnings |
|
|
271,676 |
|
|
|
258,077 |
|
|
|
236,363 |
|
|
|
210,385 |
|
|
|
191,098 |
|
Treasury stock |
|
|
(31,570 |
) |
|
|
(31,161 |
) |
|
|
(20,712 |
) |
|
|
(8,275 |
) |
|
|
(1,668 |
) |
Accumulated other comprehensive income (loss), net of tax |
|
|
(8,302 |
) |
|
|
(5,514 |
) |
|
|
177 |
|
|
|
(8,347 |
) |
|
|
18,047 |
|
Total stockholders’ equity |
|
|
836,382 |
|
|
|
824,418 |
|
|
|
817,073 |
|
|
|
793,795 |
|
|
|
805,464 |
|
Total liabilities and stockholders equity |
|
$ |
6,696,172 |
|
$ |
6,704,451 |
|
$ |
6,540,602 |
|
$ |
6,750,125 |
|
$ |
6,390,652 |
|
||||
BYLINE BANCORP, INC. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF OPERATIONS (unaudited) |
|||||||||||||||||||||||||||
|
Three Months Ended |
|
Year Ended |
||||||||||||||||||||||||
(dollars in thousands, except per share data) |
December 31, |
|
September 30, |
|
June 30, |
|
March 31, |
|
December 31, |
|
December 31, |
|
December 31, |
||||||||||||||
|
2021 |
|
2021 |
|
2021 |
|
2021 |
|
2020 |
|
2021 |
|
2020 |
||||||||||||||
INTEREST AND DIVIDEND INCOME |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
Interest and fees on loans and leases |
$ |
58,570 |
|
|
$ |
56,291 |
|
|
$ |
54,324 |
|
|
$ |
53,808 |
|
|
$ |
53,441 |
|
|
$ |
222,993 |
|
|
$ |
208,788 |
|
Interest on securities |
|
5,619 |
|
|
|
5,534 |
|
|
|
6,359 |
|
|
|
6,089 |
|
|
|
6,252 |
|
|
|
23,601 |
|
|
|
28,868 |
|
Other interest and dividend income |
|
495 |
|
|
|
947 |
|
|
|
628 |
|
|
|
262 |
|
|
|
232 |
|
|
|
2,332 |
|
|
|
1,574 |
|
Total interest and dividend income |
|
64,684 |
|
|
|
62,772 |
|
|
|
61,311 |
|
|
|
60,159 |
|
|
|
59,925 |
|
|
|
248,926 |
|
|
|
239,230 |
|
INTEREST EXPENSE |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
Deposits |
|
1,037 |
|
|
|
986 |
|
|
|
1,058 |
|
|
|
1,421 |
|
|
|
1,814 |
|
|
|
4,502 |
|
|
|
16,624 |
|
Other borrowings |
|
330 |
|
|
|
349 |
|
|
|
482 |
|
|
|
502 |
|
|
|
480 |
|
|
|
1,663 |
|
|
|
3,318 |
|
Subordinated notes and debentures |
|
1,589 |
|
|
|
1,592 |
|
|
|
1,597 |
|
|
|
1,596 |
|
|
|
1,611 |
|
|
|
6,374 |
|
|
|
4,310 |
|
Total interest expense |
|
2,956 |
|
|
|
2,927 |
|
|
|
3,137 |
|
|
|
3,519 |
|
|
|
3,905 |
|
|
|
12,539 |
|
|
|
24,252 |
|
Net interest income |
|
61,728 |
|
|
|
59,845 |
|
|
|
58,174 |
|
|
|
56,640 |
|
|
|
56,020 |
|
|
|
236,387 |
|
|
|
214,978 |
|
PROVISION/(RECAPTURE) FOR LOAN AND LEASE LOSSES |
|
(1,293 |
) |
|
|
352 |
|
|
|
(1,969 |
) |
|
|
4,367 |
|
|
|
10,236 |
|
|
|
1,457 |
|
|
|
55,949 |
|
Net interest income after provision/(recapture) for loan and lease losses |
|
63,021 |
|
|
|
59,493 |
|
|
|
60,143 |
|
|
|
52,273 |
|
|
|
45,784 |
|
|
|
234,930 |
|
|
|
159,029 |
|
NON-INTEREST INCOME |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
Fees and service charges on deposits |
|
1,955 |
|
|
|
1,867 |
|
|
|
1,768 |
|
|
|
1,664 |
|
|
|
1,740 |
|
|
|
7,254 |
|
|
|
6,471 |
|
Loan servicing revenue |
|
3,392 |
|
|
|
3,344 |
|
|
|
3,188 |
|
|
|
2,769 |
|
|
|
2,645 |
|
|
|
12,693 |
|
|
|
11,319 |
|
Loan servicing asset revaluation |
|
(2,510 |
) |
|
|
(2,650 |
) |
|
|
7 |
|
|
|
(1,505 |
) |
|
|
(2,298 |
) |
|
|
(6,658 |
) |
|
|
(4,951 |
) |
ATM and interchange fees |
|
1,219 |
|
|
|
1,201 |
|
|
|
1,044 |
|
|
|
1,012 |
|
|
|
1,076 |
|
|
|
4,476 |
|
|
|
4,165 |
|
Net realized gains (losses) on securities available-for-sale |
|
(21 |
) |
|
|
130 |
|
|
|
(136 |
) |
|
|
1,462 |
|
|
|
2,889 |
|
|
|
1,435 |
|
|
|
5,301 |
|
Change in fair value of equity securities, net |
|
(98 |
) |
|
|
(275 |
) |
|
|
517 |
|
|
|
(206 |
) |
|
|
428 |
|
|
|
(62 |
) |
|
|
729 |
|
Net gains on sales of loans |
|
12,924 |
|
|
|
12,761 |
|
|
|
12,270 |
|
|
|
8,319 |
|
|
|
9,449 |
|
|
|
46,274 |
|
|
|
33,349 |
|
Wealth management and trust income |
|
764 |
|
|
|
815 |
|
|
|
722 |
|
|
|
768 |
|
|
|
710 |
|
|
|
3,069 |
|
|
|
2,680 |
|
Other non-interest income |
|
1,389 |
|
|
|
1,302 |
|
|
|
1,622 |
|
|
|
1,459 |
|
|
|
1,051 |
|
|
|
5,772 |
|
|
|
2,997 |
|
Total non-interest income |
|
19,014 |
|
|
|
18,495 |
|
|
|
21,002 |
|
|
|
15,742 |
|
|
|
17,690 |
|
|
|
74,253 |
|
|
|
62,060 |
|
NON-INTEREST EXPENSE |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
Salaries and employee benefits |
|
28,850 |
|
|
|
25,978 |
|
|
|
24,588 |
|
|
|
21,806 |
|
|
|
22,559 |
|
|
|
101,222 |
|
|
|
89,756 |
|
Occupancy and equipment expense, net |
|
4,995 |
|
|
|
4,982 |
|
|
|
4,856 |
|
|
|
5,779 |
|
|
|
6,854 |
|
|
|
20,612 |
|
|
|
22,957 |
|
Loan and lease related expenses |
|
2,328 |
|
|
|
1,175 |
|
|
|
1,503 |
|
|
|
951 |
|
|
|
1,324 |
|
|
|
5,957 |
|
|
|
5,955 |
|
Legal, audit, and other professional fees |
|
2,376 |
|
|
|
2,710 |
|
|
|
2,898 |
|
|
|
2,214 |
|
|
|
1,336 |
|
|
|
10,198 |
|
|
|
8,138 |
|
Data processing |
|
3,070 |
|
|
|
3,108 |
|
|
|
2,847 |
|
|
|
2,755 |
|
|
|
2,748 |
|
|
|
11,780 |
|
|
|
10,900 |
|
Net loss recognized on other real estate owned and other related expenses |
|
26 |
|
|
|
42 |
|
|
|
389 |
|
|
|
621 |
|
|
|
495 |
|
|
|
1,078 |
|
|
|
1,819 |
|
Other intangible assets amortization expense |
|
1,738 |
|
|
|
1,738 |
|
|
|
1,848 |
|
|
|
1,749 |
|
|
|
1,892 |
|
|
|
7,073 |
|
|
|
7,624 |
|
Other non-interest expense |
|
15,585 |
|
|
|
4,447 |
|
|
|
4,052 |
|
|
|
2,967 |
|
|
|
9,813 |
|
|
|
27,051 |
|
|
|
22,273 |
|
Total non-interest expense |
|
58,968 |
|
|
|
44,180 |
|
|
|
42,981 |
|
|
|
38,842 |
|
|
|
47,021 |
|
|
|
184,971 |
|
|
|
169,422 |
|
INCOME BEFORE PROVISION FOR INCOME TAXES |
|
23,067 |
|
|
|
33,808 |
|
|
|
38,164 |
|
|
|
29,173 |
|
|
|
16,453 |
|
|
|
124,212 |
|
|
|
51,667 |
|
PROVISION FOR INCOME TAXES |
|
5,878 |
|
|
|
8,502 |
|
|
|
9,672 |
|
|
|
7,375 |
|
|
|
4,162 |
|
|
|
31,427 |
|
|
|
14,200 |
|
NET INCOME |
|
17,189 |
|
|
|
25,306 |
|
|
|
28,492 |
|
|
|
21,798 |
|
|
|
12,291 |
|
|
|
92,785 |
|
|
|
37,467 |
|
Dividends on preferred shares |
|
196 |
|
|
|
196 |
|
|
|
195 |
|
|
|
196 |
|
|
|
196 |
|
|
|
783 |
|
|
|
783 |
|
INCOME AVAILABLE TO COMMON STOCKHOLDERS |
$ |
16,993 |
|
|
$ |
25,110 |
|
|
$ |
28,297 |
|
|
$ |
21,602 |
|
|
$ |
12,095 |
|
|
$ |
92,002 |
|
|
$ |
36,684 |
|
EARNINGS PER COMMON SHARE |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
Basic |
$ |
0.46 |
|
|
$ |
0.68 |
|
|
$ |
0.75 |
|
|
$ |
0.57 |
|
|
$ |
0.32 |
|
|
$ |
2.45 |
|
|
$ |
0.96 |
|
Diluted |
$ |
0.45 |
|
|
$ |
0.66 |
|
|
$ |
0.73 |
|
|
$ |
0.56 |
|
|
$ |
0.31 |
|
|
$ |
2.40 |
|
|
$ |
0.96 |
|
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 per share data) |
December 31, |
|
September 30, |
|
June 30, |
|
March 31, |
|
December 31, |
|
December 31, |
|
December 31, |
||||||||||||||
|
2021 |
|
2021 |
|
2021 |
|
2021 |
|
2020 |
|
2021 |
|
2020 |
||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
Earnings per Common Share |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
Basic earnings per common share |
$ |
0.46 |
|
|
$ |
0.68 |
|
|
$ |
0.75 |
|
|
$ |
0.57 |
|
|
$ |
0.32 |
|
|
$ |
2.45 |
|
|
$ |
0.96 |
|
Diluted earnings per common share |
$ |
0.45 |
|
|
$ |
0.66 |
|
|
$ |
0.73 |
|
|
$ |
0.56 |
|
|
$ |
0.31 |
|
|
$ |
2.40 |
|
|
$ |
0.96 |
|
Adjusted diluted earnings per common share(2)(3)(4) |
$ |
0.69 |
|
|
$ |
0.69 |
|
|
$ |
0.77 |
|
|
$ |
0.57 |
|
|
$ |
0.38 |
|
|
$ |
2.71 |
|
|
$ |
1.05 |
|
Weighted average common shares outstanding (basic) |
|
37,124,176 |
|
|
|
37,200,778 |
|
|
|
37,965,658 |
|
|
|
38,164,201 |
|
|
|
38,202,665 |
|
|
|
37,609,723 |
|
|
|
38,031,250 |
|
Weighted average common shares outstanding (diluted) |
|
37,999,401 |
|
|
|
38,018,301 |
|
|
|
38,696,036 |
|
|
|
38,915,482 |
|
|
|
38,574,129 |
|
|
|
38,369,067 |
|
|
|
38,312,608 |
|
Common shares outstanding |
|
37,713,903 |
|
|
|
37,690,087 |
|
|
|
38,094,972 |
|
|
|
38,641,851 |
|
|
|
38,618,054 |
|
|
|
37,713,903 |
|
|
|
38,618,054 |
|
Cash dividends per common share |
$ |
0.09 |
|
|
$ |
0.09 |
|
|
$ |
0.06 |
|
|
$ |
0.06 |
|
|
$ |
0.03 |
|
|
$ |
0.30 |
|
|
$ |
0.12 |
|
Dividend payout ratio on common stock |
|
20.00 |
% |
|
|
13.64 |
% |
|
|
8.22 |
% |
|
|
10.71 |
% |
|
|
9.68 |
% |
|
|
12.50 |
% |
|
|
12.50 |
% |
Tangible book value per common share(1) |
$ |
17.51 |
|
|
$ |
17.16 |
|
|
$ |
16.74 |
|
|
$ |
15.85 |
|
|
$ |
16.12 |
|
|
$ |
17.51 |
|
|
$ |
16.12 |
|
Key Ratios and Performance Metrics
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
Net interest margin, fully taxable equivalent (1)(5) |
|
3.97 |
% |
|
|
3.92 |
% |
|
|
3.76 |
% |
|
|
3.78 |
% |
|
|
3.78 |
% |
|
|
3.86 |
% |
|
|
3.81 |
% |
Average cost of deposits |
|
0.08 |
% |
|
|
0.08 |
% |
|
|
0.08 |
% |
|
|
0.12 |
% |
|
|
0.15 |
% |
|
|
0.09 |
% |
|
|
0.35 |
% |
Efficiency ratio(2) |
|
70.88 |
% |
|
|
54.18 |
% |
|
|
51.95 |
% |
|
|
51.25 |
% |
|
|
61.22 |
% |
|
|
57.27 |
% |
|
|
58.40 |
% |
Adjusted efficiency ratio(1)(2)(3) |
|
55.46 |
% |
|
|
52.35 |
% |
|
|
49.50 |
% |
|
|
50.41 |
% |
|
|
55.77 |
% |
|
|
51.98 |
% |
|
|
56.68 |
% |
Non-interest expense to average assets |
|
3.49 |
% |
|
|
2.67 |
% |
|
|
2.57 |
% |
|
|
2.39 |
% |
|
|
2.92 |
% |
|
|
2.78 |
% |
|
|
2.76 |
% |
Adjusted non-interest expense to average assets(1)(3) |
|
2.76 |
% |
|
|
2.58 |
% |
|
|
2.45 |
% |
|
|
2.35 |
% |
|
|
2.67 |
% |
|
|
2.54 |
% |
|
|
2.68 |
% |
Return on average stockholders' equity |
|
8.13 |
% |
|
|
12.19 |
% |
|
|
14.10 |
% |
|
|
10.96 |
% |
|
|
6.07 |
% |
|
|
11.31 |
% |
|
|
4.78 |
% |
Adjusted return on average stockholders' equity(1)(3)(4) |
|
12.42 |
% |
|
|
12.69 |
% |
|
|
14.80 |
% |
|
|
11.18 |
% |
|
|
7.50 |
% |
|
|
12.77 |
% |
|
|
5.21 |
% |
Return on average assets |
|
1.02 |
% |
|
|
1.53 |
% |
|
|
1.70 |
% |
|
|
1.34 |
% |
|
|
0.76 |
% |
|
|
1.40 |
% |
|
|
0.61 |
% |
Adjusted return on average assets(1)(3)(4) |
|
1.56 |
% |
|
|
1.59 |
% |
|
|
1.78 |
% |
|
|
1.37 |
% |
|
|
0.94 |
% |
|
|
1.58 |
% |
|
|
0.67 |
% |
Non-interest income to total revenues(1) |
|
23.55 |
% |
|
|
23.61 |
% |
|
|
26.53 |
% |
|
|
21.75 |
% |
|
|
24.00 |
% |
|
|
23.90 |
% |
|
|
22.40 |
% |
Pre-tax pre-provision return on average assets(1) |
|
1.29 |
% |
|
|
2.07 |
% |
|
|
2.16 |
% |
|
|
2.06 |
% |
|
|
1.66 |
% |
|
|
1.89 |
% |
|
|
1.75 |
% |
Adjusted pre-tax pre-provision return
|
|
2.03 |
% |
|
|
2.15 |
% |
|
|
2.28 |
% |
|
|
2.10 |
% |
|
|
1.91 |
% |
|
|
2.14 |
% |
|
|
1.83 |
% |
Return on average tangible common stockholders' equity(1) |
|
10.94 |
% |
|
|
16.22 |
% |
|
|
18.87 |
% |
|
|
14.86 |
% |
|
|
8.61 |
% |
|
|
15.17 |
% |
|
|
7.06 |
% |
Adjusted return on average tangible common stockholders' equity(1)(3) |
|
16.38 |
% |
|
|
16.86 |
% |
|
|
19.77 |
% |
|
|
15.15 |
% |
|
|
10.47 |
% |
|
|
17.04 |
% |
|
|
7.63 |
% |
Non-interest-bearing deposits to total deposits |
|
41.87 |
% |
|
|
41.06 |
% |
|
|
41.03 |
% |
|
|
40.12 |
% |
|
|
37.09 |
% |
|
|
41.87 |
% |
|
|
37.09 |
% |
Loans and leases held for sale and loans and lease held for investment to total deposits |
|
89.26 |
% |
|
|
90.29 |
% |
|
|
88.26 |
% |
|
|
89.23 |
% |
|
|
91.51 |
% |
|
|
89.26 |
% |
|
|
91.51 |
% |
Deposits to total liabilities |
|
87.97 |
% |
|
|
87.73 |
% |
|
|
88.97 |
% |
|
|
84.36 |
% |
|
|
85.08 |
% |
|
|
87.97 |
% |
|
|
85.08 |
% |
Deposits per branch |
$ |
117,160 |
|
|
$ |
117,234 |
|
|
$ |
115,732 |
|
|
$ |
109,229 |
|
|
$ |
103,305 |
|
|
$ |
117,160 |
|
|
$ |
103,305 |
|
Asset Quality Ratios |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
Non-performing loans and leases to total loans and leases held for investment, net before ALLL |
|
0.51 |
% |
|
|
0.75 |
% |
|
|
0.79 |
% |
|
|
0.83 |
% |
|
|
0.95 |
% |
|
|
0.51 |
% |
|
|
0.95 |
% |
ALLL to total loans and leases held for investment, net before ALLL |
|
1.21 |
% |
|
|
1.31 |
% |
|
|
1.38 |
% |
|
|
1.47 |
% |
|
|
1.53 |
% |
|
|
1.21 |
% |
|
|
1.53 |
% |
Net charge-offs to average total loans and leases held for investment, net before ALLL |
|
0.37 |
% |
|
|
0.13 |
% |
|
|
0.17 |
% |
|
|
0.47 |
% |
|
|
0.47 |
% |
|
|
0.28 |
% |
|
|
0.51 |
% |
Acquisition accounting adjustments(4) |
$ |
4,769 |
|
|
$ |
6,327 |
|
|
$ |
9,393 |
|
|
$ |
10,424 |
|
|
$ |
13,389 |
|
|
$ |
4,769 |
|
|
$ |
13,389 |
|
Capital Ratios |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
Common equity to total assets |
|
12.33 |
% |
|
|
12.14 |
% |
|
|
12.33 |
% |
|
|
11.61 |
% |
|
|
12.44 |
% |
|
|
12.33 |
% |
|
|
12.44 |
% |
Tangible common equity to tangible assets(1) |
|
10.11 |
% |
|
|
9.89 |
% |
|
|
10.01 |
% |
|
|
9.31 |
% |
|
|
10.01 |
% |
|
|
10.11 |
% |
|
|
10.01 |
% |
Leverage ratio |
|
10.89 |
% |
|
|
11.21 |
% |
|
|
10.82 |
% |
|
|
10.93 |
% |
|
|
11.12 |
% |
|
|
10.89 |
% |
|
|
11.12 |
% |
Common equity tier 1 capital ratio |
|
11.39 |
% |
|
|
11.32 |
% |
|
|
11.97 |
% |
|
|
12.09 |
% |
|
|
12.20 |
% |
|
|
11.39 |
% |
|
|
12.20 |
% |
Tier 1 capital ratio |
|
12.37 |
% |
|
|
12.32 |
% |
|
|
13.05 |
% |
|
|
13.20 |
% |
|
|
13.36 |
% |
|
|
12.37 |
% |
|
|
13.36 |
% |
Total capital ratio |
|
14.70 |
% |
|
|
14.78 |
% |
|
|
15.74 |
% |
|
|
15.96 |
% |
|
|
16.18 |
% |
|
|
14.70 |
% |
|
|
16.18 |
% |
(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. AND SUBSIDIARIES |
||||||||||||||||||||||||
QUARTER-TO-DATE STATEMENT OF AVERAGE INTEREST-EARNING ASSETS AND AVERAGE INTEREST-BEARING LIABILITIES (unaudited) |
||||||||||||||||||||||||
|
|
For the Three Months Ended December 31, |
||||||||||||||||||||||
|
|
2021 |
|
2020 |
||||||||||||||||||||
(dollars in thousands) |
|
Average
|
|
Interest
|
|
Average
|
|
Average
|
|
Interest
|
|
Average
|
||||||||||||
ASSETS |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Cash and cash equivalents |
|
$ |
106,170 |
|
|
$ |
42 |
|
|
|
0.16 |
% |
|
$ |
39,500 |
|
|
$ |
21 |
|
|
|
0.22 |
% |
Loans and leases(1) |
|
|
4,610,608 |
|
|
|
58,570 |
|
|
|
5.04 |
% |
|
|
4,340,388 |
|
|
|
53,441 |
|
|
|
4.90 |
% |
Taxable securities |
|
|
1,288,969 |
|
|
|
5,111 |
|
|
|
1.57 |
% |
|
|
1,364,980 |
|
|
|
5,555 |
|
|
|
1.62 |
% |
Tax-exempt securities(2) |
|
|
184,015 |
|
|
|
1,217 |
|
|
|
2.62 |
% |
|
|
168,878 |
|
|
|
1,148 |
|
|
|
2.71 |
% |
Total interest-earning assets |
|
$ |
6,189,762 |
|
|
$ |
64,940 |
|
|
|
4.16 |
% |
|
$ |
5,913,746 |
|
|
$ |
60,165 |
|
|
|
4.05 |
% |
Allowance for loan and lease losses |
|
|
(59,144 |
) |
|
|
|
|
|
|
|
|
(63,891 |
) |
|
|
|
|
|
|
||||
All other assets |
|
|
568,451 |
|
|
|
|
|
|
|
|
|
550,766 |
|
|
|
|
|
|
|
||||
TOTAL ASSETS |
|
$ |
6,699,069 |
|
|
|
|
|
|
|
|
$ |
6,400,621 |
|
|
|
|
|
|
|
||||
LIABILITIES AND STOCKHOLDERS’ EQUITY |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Deposits |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Interest checking |
|
$ |
659,841 |
|
|
$ |
236 |
|
|
|
0.14 |
% |
|
$ |
578,520 |
|
|
$ |
287 |
|
|
|
0.20 |
% |
Money market accounts |
|
|
1,089,398 |
|
|
|
345 |
|
|
|
0.13 |
% |
|
|
1,152,012 |
|
|
|
444 |
|
|
|
0.15 |
% |
Savings |
|
|
633,469 |
|
|
|
75 |
|
|
|
0.05 |
% |
|
|
554,633 |
|
|
|
66 |
|
|
|
0.05 |
% |
Time deposits |
|
|
688,154 |
|
|
|
381 |
|
|
|
0.22 |
% |
|
|
802,409 |
|
|
|
1,017 |
|
|
|
0.50 |
% |
Total interest-bearing deposits |
|
|
3,070,862 |
|
|
|
1,037 |
|
|
|
0.13 |
% |
|
|
3,087,574 |
|
|
|
1,814 |
|
|
|
0.23 |
% |
Other borrowings |
|
|
385,787 |
|
|
|
330 |
|
|
|
0.34 |
% |
|
|
577,309 |
|
|
|
480 |
|
|
|
0.33 |
% |
Subordinated notes and debentures |
|
|
110,341 |
|
|
|
1,589 |
|
|
|
5.71 |
% |
|
|
109,704 |
|
|
|
1,611 |
|
|
|
5.84 |
% |
Total borrowings |
|
|
496,128 |
|
|
|
1,919 |
|
|
|
1.53 |
% |
|
|
687,013 |
|
|
|
2,091 |
|
|
|
1.21 |
% |
Total interest-bearing liabilities |
|
$ |
3,566,990 |
|
|
$ |
2,956 |
|
|
|
0.33 |
% |
|
$ |
3,774,587 |
|
|
$ |
3,905 |
|
|
|
0.41 |
% |
Non-interest-bearing demand deposits |
|
|
2,222,583 |
|
|
|
|
|
|
|
|
|
1,761,902 |
|
|
|
|
|
|
|
||||
Other liabilities |
|
|
70,521 |
|
|
|
|
|
|
|
|
|
58,539 |
|
|
|
|
|
|
|
||||
Total stockholders’ equity |
|
|
838,975 |
|
|
|
|
|
|
|
|
|
805,593 |
|
|
|
|
|
|
|
||||
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY |
|
$ |
6,699,069 |
|
|
|
|
|
|
|
|
$ |
6,400,621 |
|
|
|
|
|
|
|
||||
Net interest spread(3) |
|
|
|
|
|
|
|
|
3.83 |
% |
|
|
|
|
|
|
|
|
3.64 |
% |
||||
Net interest income, fully taxable equivalent |
|
|
|
|
$ |
61,984 |
|
|
|
|
|
|
|
|
$ |
56,260 |
|
|
|
|
||||
Net interest margin, fully taxable equivalent(2)(4) |
|
|
|
|
|
|
|
|
3.97 |
% |
|
|
|
|
|
|
|
|
3.78 |
% |
||||
Tax-equivalent adjustment |
|
|
|
|
|
(256 |
) |
|
|
0.01 |
% |
|
|
|
|
|
(240 |
) |
|
|
0.01 |
% |
||
Net interest income |
|
|
|
|
$ |
61,728 |
|
|
|
|
|
|
|
|
$ |
56,020 |
|
|
|
|
||||
Net interest margin(4) |
|
|
|
|
|
|
|
|
3.96 |
% |
|
|
|
|
|
|
|
|
3.77 |
% |
||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Net loan accretion impact on margin |
|
|
|
|
$ |
1,450 |
|
|
|
0.09 |
% |
|
|
|
|
$ |
2,304 |
|
|
|
0.16 |
% |
||
(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. AND SUBSIDIARIES |
||||||||||||||||||||||||
YEAR-TO-DATE STATEMENT OF AVERAGE INTEREST-EARNING ASSETS AND AVERAGE INTEREST-BEARING LIABILITIES (unaudited) |
||||||||||||||||||||||||
|
|
For the Year Ended December 31, |
||||||||||||||||||||||
|
|
2021 |
|
2020 |
||||||||||||||||||||
(dollars in thousands) |
|
Average
|
|
Interest
|
|
Average
|
|
Average
|
|
Interest
|
|
Average
|
||||||||||||
ASSETS |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Cash and cash equivalents |
|
$ |
69,338 |
|
|
$ |
117 |
|
|
|
0.17 |
% |
|
$ |
46,508 |
|
|
$ |
228 |
|
|
|
0.49 |
% |
Loans and leases(1) |
|
|
4,518,836 |
|
|
|
222,993 |
|
|
|
4.93 |
% |
|
|
4,196,708 |
|
|
|
208,788 |
|
|
|
4.98 |
% |
Taxable securities |
|
|
1,376,045 |
|
|
|
21,909 |
|
|
|
1.59 |
% |
|
|
1,287,480 |
|
|
|
27,233 |
|
|
|
2.12 |
% |
Tax-exempt securities(2) |
|
|
184,622 |
|
|
|
4,946 |
|
|
|
2.68 |
% |
|
|
128,664 |
|
|
|
3,773 |
|
|
|
2.93 |
% |
Total interest-earning assets |
|
$ |
6,148,841 |
|
|
$ |
249,965 |
|
|
|
4.07 |
% |
|
$ |
5,659,360 |
|
|
$ |
240,022 |
|
|
|
4.24 |
% |
Allowance for loan and lease losses |
|
|
(63,351 |
) |
|
|
|
|
|
|
|
|
(48,688 |
) |
|
|
|
|
|
|
||||
All other assets |
|
|
556,641 |
|
|
|
|
|
|
|
|
|
529,471 |
|
|
|
|
|
|
|
||||
TOTAL ASSETS |
|
$ |
6,642,131 |
|
|
|
|
|
|
|
|
$ |
6,140,143 |
|
|
|
|
|
|
|
||||
LIABILITIES AND STOCKHOLDERS’ EQUITY |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Deposits |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Interest checking |
|
$ |
622,147 |
|
|
$ |
883 |
|
|
|
0.14 |
% |
|
$ |
469,418 |
|
|
$ |
938 |
|
|
|
0.20 |
% |
Money market accounts |
|
|
1,073,970 |
|
|
|
1,285 |
|
|
|
0.12 |
% |
|
|
1,132,978 |
|
|
|
4,238 |
|
|
|
0.37 |
% |
Savings |
|
|
610,953 |
|
|
|
289 |
|
|
|
0.05 |
% |
|
|
520,472 |
|
|
|
252 |
|
|
|
0.05 |
% |
Time deposits |
|
|
722,974 |
|
|
|
2,045 |
|
|
|
0.28 |
% |
|
|
940,165 |
|
|
|
11,196 |
|
|
|
1.19 |
% |
Total interest-bearing deposits |
|
|
3,030,044 |
|
|
|
4,502 |
|
|
|
0.15 |
% |
|
|
3,063,033 |
|
|
|
16,624 |
|
|
|
0.54 |
% |
Other borrowings |
|
|
525,078 |
|
|
|
1,663 |
|
|
|
0.32 |
% |
|
|
542,937 |
|
|
|
3,318 |
|
|
|
0.61 |
% |
Subordinated notes and debentures |
|
|
110,108 |
|
|
|
6,374 |
|
|
|
5.79 |
% |
|
|
72,188 |
|
|
|
4,310 |
|
|
|
5.97 |
% |
Total borrowings |
|
|
635,186 |
|
|
|
8,037 |
|
|
|
1.27 |
% |
|
|
615,125 |
|
|
|
7,628 |
|
|
|
1.24 |
% |
Total interest-bearing liabilities |
|
$ |
3,665,230 |
|
|
$ |
12,539 |
|
|
|
0.34 |
% |
|
$ |
3,678,158 |
|
|
$ |
24,252 |
|
|
|
0.66 |
% |
Non-interest-bearing demand deposits |
|
|
2,085,454 |
|
|
|
|
|
|
|
|
|
1,624,754 |
|
|
|
|
|
|
|
||||
Other liabilities |
|
|
71,430 |
|
|
|
|
|
|
|
|
|
52,653 |
|
|
|
|
|
|
|
||||
Total stockholders’ equity |
|
|
820,017 |
|
|
|
|
|
|
|
|
|
784,578 |
|
|
|
|
|
|
|
||||
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY |
|
$ |
6,642,131 |
|
|
|
|
|
|
|
|
$ |
6,140,143 |
|
|
|
|
|
|
|
||||
Net interest spread(3) |
|
|
|
|
|
|
|
|
3.73 |
% |
|
|
|
|
|
|
|
|
3.58 |
% |
||||
Net interest income, fully taxable equivalent |
|
|
|
|
$ |
237,426 |
|
|
|
|
|
|
|
|
$ |
215,770 |
|
|
|
|
||||
Net interest margin, fully taxable equivalent(2)(4) |
|
|
|
|
|
|
|
|
3.86 |
% |
|
|
|
|
|
|
|
|
3.81 |
% |
||||
Tax-equivalent adjustment |
|
|
|
|
|
(1,039 |
) |
|
|
0.02 |
% |
|
|
|
|
|
(792 |
) |
|
|
0.01 |
% |
||
Net interest income |
|
|
|
|
$ |
236,387 |
|
|
|
|
|
|
|
|
$ |
214,978 |
|
|
|
|
||||
Net interest margin(4) |
|
|
|
|
|
|
|
|
3.84 |
% |
|
|
|
|
|
|
|
|
3.80 |
% |
||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Net loan accretion impact on margin |
|
|
|
|
$ |
6,451 |
|
|
|
0.10 |
% |
|
|
|
|
$ |
13,058 |
|
|
|
0.23 |
% |
||
(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 divided by total average earning assets. |
|
(5) |
Average balances are average daily balances. |
BYLINE BANCORP, INC. AND SUBSIDIARIES
RECONCILIATION OF NON-GAAP FINANCIAL MEASURES (unaudited)
Non-GAAP Financial Measures
This release contains certain financial information determined by methods other than in accordance with accounting principles generally accepted in the United States of America (“GAAP”). These measures include adjusted net income, adjusted diluted earnings per share, adjusted efficiency ratio, adjusted non-interest expense to average assets, tax-equivalent net interest margin, non-interest income to total revenues, adjusted return on average stockholders’ equity, adjusted return on average assets, pre-tax pre-provision return on average assets, adjusted pre-tax pre-provision return on average assets, tangible book value per common share, tangible common equity to tangible assets, return on average tangible common stockholders' equity, and adjusted return on average tangible common stockholders' equity. Management believes that these non-GAAP financial measures provide useful information to management and investors that is supplementary to the Company’s financial condition, results of operations and cash flows computed in accordance with GAAP; however, management acknowledges that our non-GAAP financial measures have a number of limitations. As such, these disclosures should not be viewed as a substitute for results determined in accordance with GAAP financial measures that we and other companies use. Management also uses these measures for peer comparison. See below in the financial schedules included in this press release for a reconciliation of the non-GAAP financial measures to the comparable GAAP financial measures. Additionally, please refer to the Company’s Annual Report on Form 10-K for the detailed definitions of these non-GAAP financial measures.
|
As of or For the Three Months Ended |
|
As of or For the Year Ended |
||||||||||||||||||||||||
(dollars in thousands, except per share data) |
December 31, |
|
September 30, |
|
June 30, |
|
March 31, |
|
December 31, |
|
December 31, |
|
December 31, |
||||||||||||||
|
2021 |
|
2021 |
|
2021 |
|
2021 |
|
2020 |
|
2021 |
|
2020 |
||||||||||||||
Net income and earnings per share excluding significant items |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
Reported Net Income |
$ |
17,189 |
|
|
$ |
25,306 |
|
|
$ |
28,492 |
|
|
$ |
21,798 |
|
|
$ |
12,291 |
|
|
$ |
92,785 |
|
|
$ |
37,467 |
|
Significant items: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
Impairment charges on assets held for sale and ROU asset |
|
12,449 |
|
|
|
1,435 |
|
|
|
1,942 |
|
|
|
604 |
|
|
|
4,022 |
|
|
|
16,430 |
|
|
|
4,769 |
|
Tax benefit |
|
(3,377 |
) |
|
|
(391 |
) |
|
|
(529 |
) |
|
|
(165 |
) |
|
|
(1,120 |
) |
|
|
(4,462 |
) |
|
|
(1,328 |
) |
Adjusted Net Income |
$ |
26,261 |
|
|
$ |
26,350 |
|
|
$ |
29,905 |
|
|
$ |
22,237 |
|
|
$ |
15,193 |
|
|
$ |
104,753 |
|
|
$ |
40,908 |
|
Reported Diluted Earnings per Share |
$ |
0.45 |
|
|
$ |
0.66 |
|
|
$ |
0.73 |
|
|
$ |
0.56 |
|
|
$ |
0.31 |
|
|
$ |
2.40 |
|
|
$ |
0.96 |
|
Significant items: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
Impairment charges on assets held for sale and ROU asset |
|
0.33 |
|
|
|
0.04 |
|
|
|
0.05 |
|
|
|
0.02 |
|
|
|
0.10 |
|
|
|
0.43 |
|
|
|
0.12 |
|
Tax benefit |
|
(0.09 |
) |
|
|
(0.01 |
) |
|
|
(0.01 |
) |
|
|
(0.01 |
) |
|
|
(0.03 |
) |
|
|
(0.12 |
) |
|
|
(0.03 |
) |
Adjusted Diluted Earnings per Share |
$ |
0.69 |
|
|
$ |
0.69 |
|
|
$ |
0.77 |
|
|
$ |
0.57 |
|
|
$ |
0.38 |
|
|
$ |
2.71 |
|
|
$ |
1.05 |
|
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, |
|
September 30, |
|
June 30, |
|
March 31, |
|
December 31, |
|
December 31, |
|
December 31, |
||||||||||||||
|
2021 |
|
2021 |
|
2021 |
|
2021 |
|
2020 |
|
2021 |
|
2020 |
||||||||||||||
Adjusted non-interest expense: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
Non-interest expense |
$ |
58,968 |
|
|
$ |
44,180 |
|
|
$ |
42,981 |
|
|
$ |
38,842 |
|
|
$ |
47,021 |
|
|
$ |
184,971 |
|
|
$ |
169,422 |
|
Less: Significant items |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
Impairment charges on assets held for sale and ROU asset |
|
12,449 |
|
|
|
1,435 |
|
|
|
1,942 |
|
|
|
604 |
|
|
|
4,022 |
|
|
|
16,430 |
|
|
|
4,769 |
|
Adjusted non-interest expense |
$ |
46,519 |
|
|
$ |
42,745 |
|
|
$ |
41,039 |
|
|
$ |
38,238 |
|
|
$ |
42,999 |
|
|
$ |
168,541 |
|
|
$ |
164,653 |
|
Adjusted non-interest expense excluding amortization of intangible assets: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
Adjusted non-interest expense |
$ |
46,519 |
|
|
$ |
42,745 |
|
|
$ |
41,039 |
|
|
$ |
38,238 |
|
|
$ |
42,999 |
|
|
$ |
168,541 |
|
|
$ |
164,653 |
|
Less: Amortization of intangible assets |
|
1,738 |
|
|
|
1,738 |
|
|
|
1,848 |
|
|
|
1,749 |
|
|
|
1,892 |
|
|
|
7,073 |
|
|
|
7,624 |
|
Adjusted non-interest expense excluding amortization of intangible assets |
$ |
44,781 |
|
|
$ |
41,007 |
|
|
$ |
39,191 |
|
|
$ |
36,489 |
|
|
$ |
41,107 |
|
|
$ |
161,468 |
|
|
$ |
157,029 |
|
Pre-tax pre-provision net income: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
Pre-tax income |
$ |
23,067 |
|
|
$ |
33,808 |
|
|
$ |
38,164 |
|
|
$ |
29,173 |
|
|
$ |
16,453 |
|
|
$ |
124,212 |
|
|
$ |
51,667 |
|
Add: Provision/(recapture) for loan and lease losses |
|
(1,293 |
) |
|
|
352 |
|
|
|
(1,969 |
) |
|
|
4,367 |
|
|
|
10,236 |
|
|
|
1,457 |
|
|
|
55,949 |
|
Pre-tax pre-provision net income |
$ |
21,774 |
|
|
$ |
34,160 |
|
|
$ |
36,195 |
|
|
$ |
33,540 |
|
|
$ |
26,689 |
|
|
$ |
125,669 |
|
|
$ |
107,616 |
|
Adjusted pre-tax pre-provision net income: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
Pre-tax pre-provision net income |
$ |
21,774 |
|
|
$ |
34,160 |
|
|
$ |
36,195 |
|
|
$ |
33,540 |
|
|
$ |
26,689 |
|
|
$ |
125,669 |
|
|
$ |
107,616 |
|
Impairment charges on assets held for sale and ROU asset |
|
12,449 |
|
|
|
1,435 |
|
|
|
1,942 |
|
|
|
604 |
|
|
|
4,022 |
|
|
|
16,430 |
|
|
|
4,769 |
|
Adjusted pre-tax pre-provision net income |
$ |
34,223 |
|
|
$ |
35,595 |
|
|
$ |
38,137 |
|
|
$ |
34,144 |
|
|
$ |
30,711 |
|
|
$ |
142,099 |
|
|
$ |
112,385 |
|
Tax equivalent net interest income |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
Net interest income |
$ |
61,728 |
|
|
$ |
59,845 |
|
|
$ |
58,174 |
|
|
$ |
56,640 |
|
|
$ |
56,020 |
|
|
$ |
236,387 |
|
|
$ |
214,978 |
|
Add: Tax-equivalent adjustment |
|
256 |
|
|
|
264 |
|
|
|
269 |
|
|
|
250 |
|
|
|
240 |
|
|
|
1,039 |
|
|
|
792 |
|
Net interest income, fully taxable equivalent |
$ |
61,984 |
|
|
$ |
60,109 |
|
|
$ |
58,443 |
|
|
$ |
56,890 |
|
|
$ |
56,260 |
|
|
$ |
237,426 |
|
|
$ |
215,770 |
|
Total revenue: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
Net interest income |
$ |
61,728 |
|
|
$ |
59,845 |
|
|
$ |
58,174 |
|
|
$ |
56,640 |
|
|
$ |
56,020 |
|
|
$ |
236,387 |
|
|
$ |
214,978 |
|
Add: Non-interest income |
|
19,014 |
|
|
|
18,495 |
|
|
|
21,002 |
|
|
|
15,742 |
|
|
|
17,690 |
|
|
|
74,253 |
|
|
|
62,060 |
|
Total revenue |
$ |
80,742 |
|
|
$ |
78,340 |
|
|
$ |
79,176 |
|
|
$ |
72,382 |
|
|
$ |
73,710 |
|
|
$ |
310,640 |
|
|
$ |
277,038 |
|
Tangible common stockholders' equity: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
Total stockholders' equity |
$ |
836,382 |
|
|
$ |
824,418 |
|
|
$ |
817,073 |
|
|
$ |
793,795 |
|
|
$ |
805,464 |
|
|
$ |
836,382 |
|
|
$ |
805,464 |
|
Less: Preferred stock |
|
10,438 |
|
|
|
10,438 |
|
|
|
10,438 |
|
|
|
10,438 |
|
|
|
10,438 |
|
|
|
10,438 |
|
|
|
10,438 |
|
Less: Goodwill and other intangibles |
|
165,558 |
|
|
|
167,296 |
|
|
|
169,034 |
|
|
|
170,882 |
|
|
|
172,631 |
|
|
|
165,558 |
|
|
|
172,631 |
|
Tangible common stockholders' equity |
$ |
660,386 |
|
|
$ |
646,684 |
|
|
$ |
637,601 |
|
|
$ |
612,475 |
|
|
$ |
622,395 |
|
|
$ |
660,386 |
|
|
$ |
622,395 |
|
Tangible assets: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
Total assets |
$ |
6,696,172 |
|
|
$ |
6,704,451 |
|
|
$ |
6,540,602 |
|
|
$ |
6,750,125 |
|
|
$ |
6,390,652 |
|
|
$ |
6,696,172 |
|
|
$ |
6,390,652 |
|
Less: Goodwill and other intangibles |
|
165,558 |
|
|
|
167,296 |
|
|
|
169,034 |
|
|
|
170,882 |
|
|
|
172,631 |
|
|
|
165,558 |
|
|
|
172,631 |
|
Tangible assets |
$ |
6,530,614 |
|
|
$ |
6,537,155 |
|
|
$ |
6,371,568 |
|
|
$ |
6,579,243 |
|
|
$ |
6,218,021 |
|
|
$ |
6,530,614 |
|
|
$ |
6,218,021 |
|
Average tangible common stockholders' equity: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
Average total stockholders' equity |
$ |
838,975 |
|
|
$ |
823,754 |
|
|
$ |
810,490 |
|
|
$ |
806,452 |
|
|
$ |
805,593 |
|
|
$ |
820,017 |
|
|
$ |
784,578 |
|
Less: Average preferred stock |
|
10,438 |
|
|
|
10,438 |
|
|
|
10,438 |
|
|
|
10,438 |
|
|
|
10,438 |
|
|
|
10,438 |
|
|
|
10,438 |
|
Less: Average goodwill and other intangibles |
|
166,396 |
|
|
|
168,140 |
|
|
|
169,906 |
|
|
|
171,795 |
|
|
|
173,536 |
|
|
|
169,042 |
|
|
|
176,448 |
|
Average tangible common stockholders' equity |
$ |
662,141 |
|
|
$ |
645,176 |
|
|
$ |
630,146 |
|
|
$ |
624,219 |
|
|
$ |
621,619 |
|
|
$ |
640,537 |
|
|
$ |
597,692 |
|
Average tangible assets: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
Average total assets |
$ |
6,699,069 |
|
|
$ |
6,560,868 |
|
|
$ |
6,720,492 |
|
|
$ |
6,587,765 |
|
|
$ |
6,400,621 |
|
|
$ |
6,642,131 |
|
|
$ |
6,140,143 |
|
Less: Average goodwill and other intangibles |
|
166,396 |
|
|
|
168,140 |
|
|
|
169,906 |
|
|
|
171,795 |
|
|
|
173,536 |
|
|
|
169,042 |
|
|
|
176,448 |
|
Average tangible assets |
$ |
6,532,673 |
|
|
$ |
6,392,728 |
|
|
$ |
6,550,586 |
|
|
$ |
6,415,970 |
|
|
$ |
6,227,085 |
|
|
$ |
6,473,089 |
|
|
$ |
5,963,695 |
|
Tangible net income available to common stockholders: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
Net income available to common stockholders |
$ |
16,993 |
|
|
$ |
25,110 |
|
|
$ |
28,297 |
|
|
$ |
21,602 |
|
|
$ |
12,095 |
|
|
$ |
92,002 |
|
|
$ |
36,684 |
|
Add: After-tax intangible asset amortization |
|
1,266 |
|
|
|
1,265 |
|
|
|
1,344 |
|
|
|
1,272 |
|
|
|
1,365 |
|
|
|
5,147 |
|
|
|
5,501 |
|
Tangible net income available to common stockholders |
$ |
18,259 |
|
|
$ |
26,375 |
|
|
$ |
29,641 |
|
|
$ |
22,874 |
|
|
$ |
13,460 |
|
|
$ |
97,149 |
|
|
$ |
42,185 |
|
Adjusted tangible net income available to common stockholders: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
Tangible net income available to common stockholders |
$ |
18,259 |
|
|
$ |
26,375 |
|
|
$ |
29,641 |
|
|
$ |
22,874 |
|
|
$ |
13,460 |
|
|
$ |
97,149 |
|
|
$ |
42,185 |
|
Impairment charges on assets held for sale and ROU asset |
|
12,449 |
|
|
|
1,435 |
|
|
|
1,942 |
|
|
|
604 |
|
|
|
4,022 |
|
|
|
16,430 |
|
|
|
4,769 |
|
Tax benefit on significant items |
|
(3,377 |
) |
|
|
(391 |
) |
|
|
(529 |
) |
|
|
(165 |
) |
|
|
(1,120 |
) |
|
|
(4,462 |
) |
|
|
(1,328 |
) |
Adjusted tangible net income available to common stockholders |
$ |
27,331 |
|
|
$ |
27,419 |
|
|
$ |
31,054 |
|
|
$ |
23,313 |
|
|
$ |
16,362 |
|
|
$ |
109,117 |
|
|
$ |
45,626 |
|
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, |
|
September 30, |
|
June 30, |
|
March 31, |
|
December 31, |
|
December 31, |
|
December 31, |
||||||||||||||
|
2021 |
|
2021 |
|
2021 |
|
2021 |
|
2020 |
|
2021 |
|
2020 |
||||||||||||||
Pre-tax pre-provision return on average assets: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
Pre-tax pre-provision net income |
$ |
21,774 |
|
|
$ |
34,160 |
|
|
$ |
36,195 |
|
|
$ |
33,540 |
|
|
$ |
26,689 |
|
|
$ |
125,669 |
|
|
$ |
107,616 |
|
Average total assets |
|
6,699,069 |
|
|
|
6,560,868 |
|
|
|
6,720,492 |
|
|
|
6,587,765 |
|
|
|
6,400,621 |
|
|
|
6,642,131 |
|
|
|
6,140,143 |
|
Pre-tax pre-provision return on average assets |
|
1.29 |
% |
|
|
2.07 |
% |
|
|
2.16 |
% |
|
|
2.06 |
% |
|
|
1.66 |
% |
|
|
1.89 |
% |
|
|
1.75 |
% |
Adjusted pre-tax pre-provision return on average assets: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
Adjusted pre-tax pre-provision net income |
$ |
34,223 |
|
|
$ |
35,595 |
|
|
$ |
38,137 |
|
|
$ |
34,144 |
|
|
$ |
30,711 |
|
|
$ |
142,099 |
|
|
$ |
112,385 |
|
Average total assets |
|
6,699,069 |
|
|
|
6,560,868 |
|
|
|
6,720,492 |
|
|
|
6,587,765 |
|
|
|
6,400,621 |
|
|
|
6,642,131 |
|
|
|
6,140,143 |
|
Adjusted pre-tax pre-provision return on average assets |
|
2.03 |
% |
|
|
2.15 |
% |
|
|
2.28 |
% |
|
|
2.10 |
% |
|
|
1.91 |
% |
|
|
2.14 |
% |
|
|
1.83 |
% |
Net interest margin, fully taxable equivalent |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
Net interest income, fully taxable equivalent |
$ |
61,984 |
|
|
$ |
60,109 |
|
|
$ |
58,443 |
|
|
$ |
56,890 |
|
|
$ |
56,260 |
|
|
$ |
237,426 |
|
|
$ |
215,770 |
|
Total average interest-earning assets |
|
6,189,762 |
|
|
|
6,076,065 |
|
|
|
6,231,616 |
|
|
|
6,097,712 |
|
|
|
5,913,746 |
|
|
|
6,148,841 |
|
|
|
5,659,360 |
|
Net interest margin, fully taxable equivalent |
|
3.97 |
% |
|
|
3.92 |
% |
|
|
3.76 |
% |
|
|
3.78 |
% |
|
|
3.78 |
% |
|
|
3.86 |
% |
|
|
3.81 |
% |
Non-interest income to total revenues: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
Non-interest income |
$ |
19,014 |
|
|
$ |
18,495 |
|
|
$ |
21,002 |
|
|
$ |
15,742 |
|
|
$ |
17,690 |
|
|
$ |
74,253 |
|
|
$ |
62,060 |
|
Total revenues |
|
80,742 |
|
|
|
78,340 |
|
|
|
79,176 |
|
|
|
72,382 |
|
|
|
73,710 |
|
|
|
310,640 |
|
|
|
277,038 |
|
Non-interest income to total revenues |
|
23.55 |
% |
|
|
23.61 |
% |
|
|
26.53 |
% |
|
|
21.75 |
% |
|
|
24.00 |
% |
|
|
23.90 |
% |
|
|
22.40 |
% |
Adjusted non-interest expense to average assets: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
Adjusted non-interest expense |
$ |
46,519 |
|
|
$ |
42,745 |
|
|
$ |
41,039 |
|
|
$ |
38,238 |
|
|
$ |
42,999 |
|
|
$ |
168,541 |
|
|
$ |
164,653 |
|
Average total assets |
|
6,699,069 |
|
|
|
6,560,868 |
|
|
|
6,720,492 |
|
|
|
6,587,765 |
|
|
|
6,400,621 |
|
|
|
6,642,131 |
|
|
|
6,140,143 |
|
Adjusted non-interest expense to average assets |
|
2.76 |
% |
|
|
2.58 |
% |
|
|
2.45 |
% |
|
|
2.35 |
% |
|
|
2.67 |
% |
|
|
2.54 |
% |
|
|
2.68 |
% |
Adjusted efficiency ratio: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
Adjusted non-interest expense excluding amortization of intangible assets |
$ |
44,781 |
|
|
$ |
41,007 |
|
|
$ |
39,191 |
|
|
$ |
36,489 |
|
|
$ |
41,107 |
|
|
$ |
161,468 |
|
|
$ |
157,029 |
|
Total revenues |
|
80,742 |
|
|
|
78,340 |
|
|
|
79,176 |
|
|
|
72,382 |
|
|
|
73,710 |
|
|
|
310,640 |
|
|
|
277,038 |
|
Adjusted efficiency ratio |
|
55.46 |
% |
|
|
52.35 |
% |
|
|
49.50 |
% |
|
|
50.41 |
% |
|
|
55.77 |
% |
|
|
51.98 |
% |
|
|
56.68 |
% |
Adjusted return on average assets: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
Adjusted net income |
$ |
26,261 |
|
|
$ |
26,350 |
|
|
$ |
29,905 |
|
|
$ |
22,237 |
|
|
$ |
15,193 |
|
|
$ |
104,753 |
|
|
$ |
40,908 |
|
Average total assets |
|
6,699,069 |
|
|
|
6,560,868 |
|
|
|
6,720,492 |
|
|
|
6,587,765 |
|
|
|
6,400,621 |
|
|
|
6,642,131 |
|
|
|
6,140,143 |
|
Adjusted return on average assets |
|
1.56 |
% |
|
|
1.59 |
% |
|
|
1.78 |
% |
|
|
1.37 |
% |
|
|
0.94 |
% |
|
|
1.58 |
% |
|
|
0.67 |
% |
Adjusted return on average stockholders' equity: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
Adjusted net income |
$ |
26,261 |
|
|
$ |
26,350 |
|
|
$ |
29,905 |
|
|
$ |
22,237 |
|
|
$ |
15,193 |
|
|
$ |
104,753 |
|
|
$ |
40,908 |
|
Average stockholders' equity |
|
838,975 |
|
|
|
823,754 |
|
|
|
810,490 |
|
|
|
806,452 |
|
|
|
805,593 |
|
|
|
820,017 |
|
|
|
784,578 |
|
Adjusted return on average stockholders' equity |
|
12.42 |
% |
|
|
12.69 |
% |
|
|
14.80 |
% |
|
|
11.18 |
% |
|
|
7.50 |
% |
|
|
12.77 |
% |
|
|
5.21 |
% |
Tangible common equity to tangible assets: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
Tangible common equity |
$ |
660,386 |
|
|
$ |
646,684 |
|
|
$ |
637,601 |
|
|
$ |
612,475 |
|
|
$ |
622,395 |
|
|
$ |
660,386 |
|
|
$ |
622,395 |
|
Tangible assets |
|
6,530,614 |
|
|
|
6,537,155 |
|
|
|
6,371,568 |
|
|
|
6,579,243 |
|
|
|
6,218,021 |
|
|
|
6,530,614 |
|
|
|
6,218,021 |
|
Tangible common equity to tangible assets |
|
10.11 |
% |
|
|
9.89 |
% |
|
|
10.01 |
% |
|
|
9.31 |
% |
|
|
10.01 |
% |
|
|
10.11 |
% |
|
|
10.01 |
% |
Return on average tangible common stockholders' equity: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
Tangible net income available to common stockholders |
$ |
18,259 |
|
|
$ |
26,375 |
|
|
$ |
29,641 |
|
|
$ |
22,874 |
|
|
$ |
13,460 |
|
|
$ |
97,149 |
|
|
$ |
42,185 |
|
Average tangible common stockholders' equity |
|
662,141 |
|
|
|
645,176 |
|
|
|
630,146 |
|
|
|
624,219 |
|
|
|
621,619 |
|
|
|
640,537 |
|
|
|
597,692 |
|
Return on average tangible common stockholders' equity |
|
10.94 |
% |
|
|
16.22 |
% |
|
|
18.87 |
% |
|
|
14.86 |
% |
|
|
8.61 |
% |
|
|
15.17 |
% |
|
|
7.06 |
% |
Adjusted return on average tangible common stockholders' equity: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
Adjusted tangible net income available to common stockholders |
$ |
27,331 |
|
|
$ |
27,419 |
|
|
$ |
31,054 |
|
|
$ |
23,313 |
|
|
$ |
16,362 |
|
|
$ |
109,117 |
|
|
$ |
45,626 |
|
Average tangible common stockholders' equity |
|
662,141 |
|
|
|
645,176 |
|
|
|
630,146 |
|
|
|
624,219 |
|
|
|
621,619 |
|
|
|
640,537 |
|
|
|
597,692 |
|
Adjusted return on average tangible common stockholders' equity |
|
16.38 |
% |
|
|
16.86 |
% |
|
|
19.77 |
% |
|
|
15.15 |
% |
|
|
10.47 |
% |
|
|
17.04 |
% |
|
|
7.63 |
% |
Tangible book value per share: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
Tangible common equity |
$ |
660,386 |
|
|
$ |
646,684 |
|
|
$ |
637,601 |
|
|
$ |
612,475 |
|
|
$ |
622,395 |
|
|
$ |
660,386 |
|
|
$ |
622,395 |
|
Common shares outstanding |
|
37,713,903 |
|
|
|
37,690,087 |
|
|
|
38,094,972 |
|
|
|
38,641,851 |
|
|
|
38,618,054 |
|
|
|
37,713,903 |
|
|
|
38,618,054 |
|
Tangible book value per share |
$ |
17.51 |
|
|
$ |
17.16 |
|
|
$ |
16.74 |
|
|
$ |
15.85 |
|
|
$ |
16.12 |
|
|
$ |
17.51 |
|
|
$ |
16.12 |
|
View source version on businesswire.com: https://www.businesswire.com/news/home/20220127005904/en/
Contacts
Investors:
Brooks Rennie
Investor Relations Manager
312-660-5805
brennie@bylinebank.com
Media:
Erin O’Neill
Director of Marketing
773-475-2901
eoneill@bylinebank.com
