First quarter net income of $30.4 million,
$0.70 diluted earnings per share
Byline Bancorp, Inc. (NYSE: BY), today reported:
For the quarter
First Quarter
Highlights
1Q24
4Q23
1Q23
Financial Results ($ in
thousands)
• ROAA of 1.36%
Net interest income
$
85,541
$
86,285
$
75,718
Non-interest income
15,473
14,503
15,145
• PTPP ROAA of 2.10%(1)
Total Revenue(1)
101,014
100,788
90,863
Non-interest expense
53,809
53,584
48,800
• ROTCE of 15.88%(1)
Pre-tax pre-provision net income
(PTPP)(1)
47,205
47,204
42,063
Provision for credit losses
6,643
7,235
9,825
• TCE/TA of 8.76%(1); CET1 of 10.59%
Provision for income taxes
10,122
10,365
8,293
Net Income
$
30,440
$
29,604
$
23,945
• TBV per share of $18.29(1), up 8.1%
YoY
Per Share
Income Statement
Diluted EPS
$
0.70
$
0.68
$
0.64
• Total revenue of $101.0 million(1)
Dividends declared per common share
0.09
0.09
0.09
Book value per share
22.88
22.62
21.10
• Net Income of $30.4 million
Tangible book value per share(1)
18.29
17.98
16.92
• PTPP of $47.2 million(1)
Balance Sheet & Credit Quality ($
in thousands)
Total deposits
$
7,350,202
$
7,176,999
$
5,812,652
• Tax equivalent NIM of 4.01%(1)
Total loans and leases
6,801,782
6,702,311
5,543,711
Net charge-offs (NCO)
6,211
12,186
1,171
• Efficiency ratio of 51.94%(1)
Allowance for credit losses (ACL)
102,366
101,686
90,465
ACL to total loans and leases held for
investment
1.51%
1.52%
1.64%
Balance Sheet
• Deposit growth of $173.2 million, or
9.7%(2)
Select Ratios (annualized where
applicable)
Efficiency ratio(1)
51.94%
51.63%
52.10%
• Total loans and leases grew $99.5
million,
Return on average assets (ROAA)
1.36%
1.34%
1.32%
or 6.0%(2)
Return on average stockholders' equity
12.26%
12.56%
12.38%
Return on average tangible common
equity(1)
15.88%
16.68%
16.20%
• Total assets grew $528.5 million, or
23.9%(2)
Net Interest Margin (NIM)
4.00%
4.08%
4.38%
Common equity to total assets
10.72%
11.15%
10.57%
• Stockholders' equity exceeded $1.0
billion
Tangible common equity to tangible
assets(1)
8.76%
9.06%
8.66%
Common Equity Tier 1
10.59%
10.35%
10.27%
• Loan/deposit ratio decreased to
92.54%
(1)
Represents non-GAAP financial measures.
See “Reconciliation of non-GAAP Financial Measures” for a
reconciliation to the most directly comparable GAAP financial
measure.
(2)
Annualized
CEO/President Commentary
Roberto R. Herencia, Executive Chairman
and CEO of Byline Bancorp, commented, "Our team continues to
execute well on our strategy and this quarter was no exception. We
reported strong financial results while surpassing $9.0 billion in
total assets and $1.0 billion in stockholders’ equity. We remain
optimistic about our opportunities to execute on our strategy in
the future to further enhance the value of our franchise, while
becoming the preeminent commercial bank in Chicago."
Alberto J. Paracchini, President of Byline
Bancorp, added, "We had a solid start to 2024 and were pleased with
our results for quarter. Earnings and profitability remained robust
and we had nice growth in loans and deposits. Credit quality
remained stable and expenses continue to remain well managed. Our
balance sheet remains strong, giving us flexibility to grow the
business and take advantage of opportunities in the market. I want
to thank our employees for their continued hard work in serving our
clients."
Board Declares Cash Dividend of $0.09
per Share
On April 23, 2024, the Company's Board of Directors declared a
cash dividend of $0.09 per share, payable on May 21, 2024, to
stockholders of record of the Company's common stock as of May 7,
2024.
STATEMENTS OF OPERATIONS HIGHLIGHTS
Net Interest Income
Net interest income for the first quarter of 2024 was $85.5
million, a decrease of $744,000, or 0.9%, from the fourth quarter
of 2023. The decrease in net interest income was primarily due to
an increase of $2.7 million in deposit interest expense primarily
due to time deposit growth and higher rates paid on deposits, and
an increase of $773,000 in other borrowing interest expense due to
increased borrowings, offset by lower borrowing costs. The decrease
was partially offset by an increase of $2.5 million in other
interest and dividend income mainly due to interest income earned
on funds held with the Federal Reserve Bank.
Tax-equivalent net interest margin(1) for the first quarter of
2024 was 4.01%, a decrease of eight basis points compared to the
fourth quarter of 2023. Total net loan accretion income impact on
the margin contributed 20 basis points to the net interest margin
for the current quarter compared to 24 basis points for the prior
quarter.
The average cost of total deposits was 2.56% for the first
quarter of 2024, an increase of 14 basis points compared to the
fourth quarter of 2023, as a result of higher rates on time
deposits and money market accounts. Average non-interest-bearing
demand deposits were 25.9% of average total deposits for the
current quarter compared to 27.5% during the prior quarter.
Provision for Credit Losses
The provision for credit losses was $6.6 million for the first
quarter of 2024, a decrease of $592,000 compared to $7.2 million
for the fourth quarter of 2023, mainly attributed to a smaller
allocation to individually assessed loans, offset by growth in the
loan and lease portfolio. The provision for credit losses for the
quarter is comprised of a provision for loan and lease losses of
$6.9 million and a recapture for unfunded commitments of
$248,000.
Non-interest Income
Non-interest income for the first quarter of 2024 was $15.5
million, an increase of $970,000, or 6.7%, compared to $14.5
million for the fourth quarter of 2023. The increase in total
non-interest income was primarily due to a $1.0 million increase in
other non-interest income due to increased income on derivatives
and gains on the sales of leased equipment, and a $531,000 decrease
in the downward valuation of the loan servicing asset reflecting
lower discount rates. These were partially offset by a $449,000
decrease in the change in fair value of equity securities.
Net gains on sales of loans were $5.5 million for the current
quarter, an increase of $53,000 compared to the prior quarter.
During the first quarter of 2024, we sold $72.5 million of U.S.
government guaranteed loans compared to $89.1 million during the
fourth quarter of 2023.
Non-interest Expense
Non-interest expense for the first quarter of 2024 was $53.8
million, an increase of $225,000, or 0.4%, from $53.6 million for
the fourth quarter of 2023. The increase in total non-interest
expense was mainly due to an increase of $2.0 million in salaries
and employee benefits primarily due to increases in payroll taxes
due to annual counter resets, and an increase of $938,000 in
occupancy and equipment expense, net, due to higher real estate
taxes and maintenance expense. These increases were offset by a
$2.0 million decrease in impairment charges on assets held for
sale, and an $837,000 decrease in data processing expenses due to
decreased merger-related expenses. Other non-interest expense
includes $1.1 million of charges related to branch consolidations
incurred during the first quarter of 2024.
Our efficiency ratio was 51.94% for the first quarter of 2024
compared to 51.63% for the fourth quarter of 2023, an increase of
31 basis points. Excluding significant items, our adjusted
efficiency ratio(1) for the first quarter 2024 was 51.75%, compared
to 48.64% for the fourth quarter of 2023.
Income Taxes
We recorded income tax expense of $10.1 million during the first
quarter of 2024, compared to $10.4 million during the fourth
quarter of 2023. The effective tax rates were 25.0% and 25.9% for
the first quarter of 2024 and fourth quarter of 2023,
respectively.
(1)
Represents non-GAAP financial measures.
See “Reconciliation of non-GAAP Financial Measures” for a
reconciliation of our non-GAAP measures to the most directly
comparable GAAP financial measure.
STATEMENTS OF FINANCIAL CONDITION HIGHLIGHTS
Assets
Total assets were $9.4 billion as of March 31, 2024, an increase
of $528.5 million, or 6.0%, compared to $8.9 billion at December
31, 2023. The increase was primarily due to an increase in cash and
cash equivalents of $410.7 million, inclusive of $200.0 million in
short-term investments, and an increase in net loans and leases
held for investment of $93.2 million mainly due to growth in
commercial and industrial originations, offset by a decline of
$52.0 million in commercial real estate.
Asset and Credit Quality
The ACL was $102.4 million as of March 31, 2024, an increase of
$680,000, or 0.7%, from $101.7 million at December 31, 2023. Net
charge-offs of loans and leases during the first quarter of 2024
were $6.2 million, or 0.37% of average loans and leases, on an
annualized basis. This was a decrease of $6.0 million compared to
net charge-offs of $12.2 million, or 0.73% of average loans and
leases, during the fourth quarter of 2023. The decrease is
primarily due to lower charge-offs in the commercial and industrial
and commercial real estate loan portfolios.
Non-performing assets were $68.7 million, or 0.73% of total
assets, as of March 31, 2024, an increase of $3.4 million from
$65.3 million, or 0.74% of total assets, at December 31, 2023. The
increase was primarily the result of migration within the
government guaranteed loan portfolio to non-accrual status. The
government guaranteed portion of non-accrual loans was $7.1 million
at March 31, 2024 compared to $4.2 million at December 31,
2023.
Deposits and Other Liabilities
Total deposits increased $173.2 million to $7.4 billion at March
31, 2024 compared to $7.2 billion at December 31, 2023. The
increase in deposits in the current quarter was mainly due to
increases in time deposits and interest bearing checking accounts.
Time deposit growth of $137.7 million was principally due to
increases in consumer time deposits from deposit campaigns.
Interest-bearing demand deposits increased $109.5 million primarily
due to growth in commercial deposits.
Total borrowings and other liabilities were $1.1 billion at
March 31, 2024, an increase of $336.4 million from $714.8 million
at December 31, 2023. The increase was primarily driven by a $200.0
million advance under the Bank Term Funding Program and increases
in Federal Home Loan Bank advances, offset by a decrease of $11.3
million as a result of the repayment of the amount outstanding
under our revolving line of credit.
Stockholders’ Equity
Total stockholders’ equity grew to $1.0 billion at March 31,
2024, an increase of $18.9 million from $990.2 million at December
31, 2023. The quarterly increase was primarily due to increased
retained earnings from net income.
Conference Call, Webcast and Slide Presentation
We will host a conference call and webcast at 9:00 a.m. Central
Time on Friday, April 26, 2024, to discuss our quarterly financial
results. Analysts and investors may participate in the
question-and-answer session. The call can be accessed via telephone
at (833) 470-1428; passcode 371735. A recorded replay can be
accessed through May 10, 2024, by dialing (866) 813-9403; passcode:
454029.
A slide presentation relating to our first quarter 2024 results
will be accessible prior to the conference call. The slide
presentation and webcast of the conference call can be accessed on
our investor relations website at www.bylinebancorp.com.
About Byline Bancorp, Inc.
Headquartered in Chicago, Byline Bancorp, Inc. is the parent
company of Byline Bank, a full service commercial bank serving
small- and medium-sized businesses, financial sponsors, and
consumers. Byline Bank has approximately $9.4 billion in assets and
operates 48 branch locations throughout the Chicago and Milwaukee
metropolitan areas. Byline Bank offers a broad range of commercial
and community banking products and services including small ticket
equipment leasing solutions and is one of the top Small Business
Administration lenders in the United States.
Forward-Looking Statements
This communication contains forward-looking statements within
the meaning of the U.S. federal securities laws. Forward-looking
statements include, without limitation, statements concerning
plans, estimates, calculations, forecasts and projections with
respect to the anticipated future performance of the Company. These
statements are often, but not always, made through the use of words
or phrases such as ‘‘may’’, ‘‘might’’, ‘‘should’’, ‘‘could’’,
‘‘predict’’, ‘‘potential’’, ‘‘believe’’, ‘‘expect’’, ‘‘continue’’,
‘‘will’’, ‘‘anticipate’’, ‘‘seek’’, ‘‘estimate’’, ‘‘intend’’,
‘‘plan’’, ‘‘projection’’, ‘‘would’’, ‘‘annualized’’, “target” and
‘‘outlook’’, or the negative version of those words or other
comparable words or phrases of a future or forward-looking nature.
Forward-looking statements involve estimates and known and unknown
risks, and reflect various assumptions and involve elements of
subjective judgment and analysis, which may or may not prove to be
correct, and which are subject to uncertainties and contingencies
outside the control of Byline and its respective affiliates,
directors, employees and other representatives, which could cause
actual results to differ materially from those presented in this
communication.
No representations, warranties or guarantees are or will be made
by Byline as to the reliability, accuracy or completeness of any
forward-looking statements contained in this communication or that
such forward-looking statements are or will remain based on
reasonable assumptions. You should not place undue reliance on any
forward-looking statements contained in this communication.
Certain risks and important factors that could affect Byline’s
future results are identified in our Annual Report on Form 10-K and
other reports we file with the Securities and Exchange Commission,
including among other things under the heading “Risk Factors” in
our Annual Report on Form 10-K for the year ended December 31,
2023. Any forward-looking statement speaks only as of the date on
which it is made, and Byline undertakes no obligation to update any
forward-looking statement, whether to reflect events or
circumstances after the date on which the statement is made, to
reflect new information or the occurrence of unanticipated events,
or otherwise unless required under the federal securities laws.
BYLINE BANCORP, INC. AND
SUBSIDIARIES
CONSOLIDATED STATEMENTS OF
FINANCIAL CONDITION (unaudited)
March 31,
December 31,
March 31,
(dollars in thousands)
2024
2023
2023
ASSETS
Cash and due from banks
$
58,640
$
60,431
$
52,725
Interest bearing deposits with other
banks
578,197
165,705
231,486
Cash and cash equivalents
636,837
226,136
284,211
Equity and other securities, at fair
value
9,135
8,743
8,339
Securities available-for-sale, at fair
value
1,379,147
1,342,480
1,164,387
Securities held-to-maturity, at amortized
cost
1,156
1,157
2,704
Restricted stock, at cost
22,793
16,304
38,777
Loans held for sale
23,568
18,005
28,379
Loans and leases:
Loans and leases
6,778,214
6,684,306
5,515,332
Allowance for credit losses - loans and
leases
(102,366
)
(101,686
)
(90,465
)
Net loans and leases
6,675,848
6,582,620
5,424,867
Servicing assets, at fair value
20,992
19,844
20,944
Premises and equipment, net
64,466
66,627
56,098
Goodwill and other intangible assets,
net
202,133
203,478
157,432
Bank-owned life insurance
97,748
96,900
82,693
Deferred tax assets, net
53,029
50,058
64,918
Accrued interest receivable and other
assets
223,651
249,615
196,597
Total assets
$
9,410,503
$
8,881,967
$
7,530,346
LIABILITIES AND STOCKHOLDERS’
EQUITY
LIABILITIES
Non-interest-bearing demand deposits
$
1,851,727
$
1,905,876
$
1,952,045
Interest-bearing deposits
5,498,475
5,271,123
3,860,607
Total deposits
7,350,202
7,176,999
5,812,652
Other borrowings
721,173
395,190
662,810
Subordinated notes, net
73,909
73,866
73,735
Junior subordinated debentures issued to
capital trusts, net
70,567
70,452
37,442
Accrued interest payable and other
liabilities
185,603
175,309
148,057
Total liabilities
8,401,454
7,891,816
6,734,696
STOCKHOLDERS’ EQUITY
Common stock
452
451
390
Additional paid-in capital
708,844
710,488
598,103
Retained earnings
455,532
429,036
356,365
Treasury stock
(48,869
)
(49,707
)
(51,066
)
Accumulated other comprehensive loss, net
of tax
(106,910
)
(100,117
)
(108,142
)
Total stockholders’ equity
1,009,049
990,151
795,650
Total liabilities and stockholders’
equity
$
9,410,503
$
8,881,967
$
7,530,346
BYLINE BANCORP, INC. AND
SUBSIDIARIES
CONSOLIDATED STATEMENTS OF
OPERATIONS (unaudited)
Three Months Ended
March 31,
December 31,
March 31,
(dollars in thousands, except per share
data)
2024
2023
2023
INTEREST AND DIVIDEND INCOME
Interest and fees on loans and leases
$
123,792
$
124,042
$
92,343
Interest on securities
9,734
9,227
6,600
Other interest and dividend income
4,795
2,345
1,059
Total interest and dividend income
138,321
135,614
100,002
INTEREST EXPENSE
Deposits
45,962
43,252
16,298
Other borrowings
3,824
3,051
5,888
Subordinated notes and debentures
2,994
3,026
2,098
Total interest expense
52,780
49,329
24,284
Net interest income
85,541
86,285
75,718
PROVISION FOR CREDIT LOSSES
6,643
7,235
9,825
Net interest income after provision for
credit losses
78,898
79,050
65,893
NON-INTEREST INCOME
Fees and service charges on deposits
2,427
2,486
2,120
Loan servicing revenue
3,364
3,377
3,380
Loan servicing asset revaluation
(703
)
(1,234
)
656
ATM and interchange fees
1,075
1,082
1,063
Change in fair value of equity securities,
net
392
841
350
Net gains on sales of loans
5,533
5,480
5,148
Wealth management and trust income
1,157
1,256
924
Other non-interest income
2,228
1,215
1,504
Total non-interest income
15,473
14,503
15,145
NON-INTEREST EXPENSE
Salaries and employee benefits
33,953
31,974
30,394
Occupancy and equipment expense, net
5,284
4,346
4,444
Impairment charge on assets held for
sale
—
1,980
20
Loan and lease related expenses
685
649
963
Legal, audit, and other professional
fees
2,719
2,352
3,114
Data processing
4,145
4,982
3,783
Net (gain) loss recognized on other real
estate owned and other related expenses
(98
)
89
(103
)
Other intangible assets amortization
expense
1,345
1,550
1,455
Other non-interest expense
5,776
5,662
4,730
Total non-interest expense
53,809
53,584
48,800
INCOME BEFORE PROVISION FOR INCOME
TAXES
40,562
39,969
32,238
PROVISION FOR INCOME TAXES
10,122
10,365
8,293
NET INCOME
$
30,440
$
29,604
$
23,945
EARNINGS PER COMMON SHARE
Basic
$
0.70
$
0.69
$
0.65
Diluted
$
0.70
$
0.68
$
0.64
BYLINE BANCORP, INC. AND
SUBSIDIARIES
SELECTED FINANCIAL DATA
(unaudited)
As of or For the Three Months
Ended
(dollars in thousands, except
share
March 31,
December 31,
March 31,
and per share data)
2024
2023
2023
Earnings per Common Share
Basic earnings per common share
$
0.70
$
0.69
$
0.65
Diluted earnings per common share
$
0.70
$
0.68
$
0.64
Adjusted diluted earnings per common
share(1)(3)
$
0.70
$
0.73
$
0.65
Weighted average common shares outstanding
(basic)
43,258,087
43,065,294
36,955,085
Weighted average common shares outstanding
(diluted)
43,727,344
43,537,778
37,539,912
Common shares outstanding
44,108,387
43,764,056
37,713,427
Cash dividends per common share
$
0.09
$
0.09
$
0.09
Dividend payout ratio on common stock
12.86
%
13.24
%
14.06
%
Book value per common share
$
22.88
$
22.62
$
21.10
Tangible book value per common
share(1)
$
18.29
$
17.98
$
16.92
Key Ratios and Performance Metrics
(annualized where applicable)
Net interest margin
4.00
%
4.08
%
4.38
%
Net interest margin, fully taxable
equivalent (1)(4)
4.01
%
4.09
%
4.39
%
Average cost of deposits
2.56
%
2.42
%
1.15
%
Efficiency ratio(1)(2)
51.94
%
51.63
%
52.10
%
Adjusted efficiency ratio(1)(2)(3)
51.75
%
48.64
%
51.54
%
Non-interest income to total
revenues(1)
15.32
%
14.39
%
16.67
%
Non-interest expense to average assets
2.40
%
2.42
%
2.69
%
Adjusted non-interest expense to average
assets(1)(3)
2.39
%
2.28
%
2.67
%
Return on average stockholders' equity
12.26
%
12.56
%
12.38
%
Adjusted return on average stockholders'
equity(1)(3)
12.31
%
13.50
%
12.62
%
Return on average assets
1.36
%
1.34
%
1.32
%
Adjusted return on average
assets(1)(3)
1.36
%
1.44
%
1.35
%
Pre-tax pre-provision return on average
assets(1)
2.10
%
2.13
%
2.32
%
Adjusted pre-tax pre-provision return on
average assets(1)(3)
2.11
%
2.27
%
2.35
%
Return on average tangible common
stockholders' equity(1)
15.88
%
16.68
%
16.20
%
Adjusted return on average tangible common
stockholders' equity(1)(3)
15.95
%
17.89
%
16.49
%
Non-interest-bearing deposits to total
deposits
25.19
%
26.56
%
33.58
%
Loans and leases held for sale and loans
and lease held for investment to total deposits
92.54
%
93.39
%
95.37
%
Deposits to total liabilities
87.49
%
90.94
%
86.31
%
Deposits per branch
$
153,129
$
149,521
$
152,965
Asset Quality Ratios
Non-performing loans and leases to total
loans and leases held for investment, net before ACL
1.00
%
0.96
%
0.84
%
Total non-performing assets as a
percentage of total assets
0.73
%
0.74
%
0.67
%
ACL to total loans and leases held for
investment, net before ACL
1.51
%
1.52
%
1.64
%
Net charge-offs (annualized) to average
total loans and leases held for investment, net before ACL - loans
and leases
0.37
%
0.73
%
0.09
%
Capital Ratios
Common equity to total assets
10.72
%
11.15
%
10.57
%
Tangible common equity to tangible
assets(1)
8.76
%
9.06
%
8.66
%
Leverage ratio
10.91
%
10.86
%
10.46
%
Common equity tier 1 capital ratio
10.59
%
10.35
%
10.27
%
Tier 1 capital ratio
11.62
%
11.39
%
10.90
%
Total capital ratio
13.66
%
13.38
%
13.19
%
(1)
Represents a non-GAAP financial measure.
See “Reconciliation of non-GAAP Financial Measures” for a
reconciliation of our non-GAAP measures to the most directly
comparable GAAP financial measure.
(2)
Represents non-interest expense less
amortization of intangible assets divided by net interest income
and non-interest income.
(3)
Calculation excludes merger-related
expenses and impairment charges on assets held for sale and ROU
assets.
(4)
Interest income and rates include the
effects of a tax equivalent adjustment to adjust tax exempt
investment income on tax exempt investment securities to a fully
taxable basis, assuming a federal income tax rate of 21%.
BYLINE BANCORP, INC. AND
SUBSIDIARIES
QUARTER-TO-DATE STATEMENT OF
AVERAGE INTEREST-EARNING ASSETS AND AVERAGE INTEREST-BEARING
LIABILITIES (unaudited)
For the Three Months
Ended
March 31, 2024
December 31, 2023
March 31, 2023
(dollars in thousands)
Average Balance(5)
Interest Inc / Exp
Avg. Yield / Rate
Average Balance(5)
Interest Inc / Exp
Avg. Yield / Rate
Average Balance(5)
Interest Inc / Exp
Avg. Yield / Rate
ASSETS
Cash and cash equivalents
$
339,449
$
3,828
4.54
%
$
201,862
$
1,822
3.58
%
$
97,578
$
442
1.84
%
Loans and leases(1)
6,681,488
123,792
7.45
%
6,632,827
124,042
7.42
%
5,484,372
92,343
6.83
%
Taxable securities
1,422,661
9,822
2.78
%
1,389,580
8,848
2.53
%
1,275,377
6,431
2.04
%
Tax-exempt securities(2)
159,984
1,112
2.80
%
163,608
1,142
2.77
%
151,817
994
2.65
%
Total interest-earning assets
$
8,603,582
$
138,554
6.48
%
$
8,387,877
$
135,854
6.43
%
$
7,009,144
$
100,210
5.80
%
Allowance for credit losses - loans and
leases
(102,256
)
(106,474
)
(84,321
)
All other assets
529,615
506,233
420,328
TOTAL ASSETS
$
9,030,941
$
8,787,636
$
7,345,151
LIABILITIES AND STOCKHOLDERS’ EQUITY
Deposits
Interest checking
$
590,406
$
2,429
1.65
%
$
570,706
$
2,335
1.62
%
$
606,008
$
2,494
1.67
%
Money market accounts
2,237,324
19,660
3.53
%
2,159,841
18,730
3.44
%
1,465,677
7,728
2.14
%
Savings
531,912
197
0.15
%
560,372
208
0.15
%
613,590
227
0.15
%
Time deposits
1,992,357
23,676
4.78
%
1,861,279
21,979
4.68
%
966,409
5,849
2.45
%
Total interest-bearing deposits
5,351,999
45,962
3.45
%
5,152,198
43,252
3.33
%
3,651,684
16,298
1.81
%
Other borrowings
472,644
3,824
3.25
%
395,711
3,051
3.06
%
573,433
5,852
4.14
%
Federal funds purchased
—
—
0.00
%
—
—
0.00
%
2,778
36
5.30
%
Subordinated notes and debentures
144,387
2,994
8.34
%
144,230
3,026
8.32
%
111,101
2,098
7.66
%
Total borrowings
617,031
6,818
4.44
%
539,941
6,077
4.47
%
687,312
7,986
4.71
%
Total interest-bearing liabilities
$
5,969,030
$
52,780
3.56
%
$
5,692,139
$
49,329
3.44
%
$
4,338,996
$
24,284
2.27
%
Non-interest-bearing demand deposits
1,874,322
1,950,644
2,076,613
Other liabilities
188,783
209,656
145,253
Total stockholders’ equity
998,806
935,197
784,289
TOTAL LIABILITIES AND STOCKHOLDERS’
EQUITY
$
9,030,941
$
8,787,636
$
7,345,151
Net interest spread(3)
2.92
%
2.99
%
3.53
%
Net interest income, fully taxable
equivalent
$
85,774
$
86,525
$
75,926
Net interest margin, fully taxable
equivalent(2)(4)
4.01
%
4.09
%
4.39
%
Less: Tax-equivalent adjustment
233
0.01
%
240
0.01
%
208
0.01
%
Net interest income
$
85,541
$
86,285
$
75,718
Net interest margin(4)
4.00
%
4.08
%
4.38
%
Net loan accretion impact on margin
$
4,284
0.20
%
$
5,110
0.24
%
$
729
0.04
%
(1)
Loan and lease balances are net of
deferred origination fees and costs and initial direct costs.
Non-accrual loans and leases are included in total loan and lease
balances.
(2)
Interest income and rates include the
effects of a tax equivalent adjustment to adjust tax exempt
investment income on tax exempt investment securities to a fully
taxable basis, assuming a federal income tax rate of 21%.
(3)
Represents the average rate earned on
interest-earning assets minus the average rate paid on
interest-bearing liabilities.
(4)
Represents net interest income
(annualized) divided by total average earning assets.
(5)
Average balances are average daily
balances.
BYLINE BANCORP, INC. AND
SUBSIDIARIES
SELECTED BALANCE SHEET TABLES AND
FINANCIAL RATIOS (unaudited)
The following table presents our
allocation of originated, purchased credit deteriorated (PCD), and
acquired non-credit-deteriorated loans and leases at the dates
indicated:
March 31, 2024
December 31, 2023
March 31, 2023
(dollars in thousands)
Amount
% of Total
Amount
% of Total
Amount
% of Total
Originated loans and leases:
Commercial real estate
$
1,879,149
27.7
%
$
1,907,029
28.5
%
$
1,749,808
31.7
%
Residential real estate
488,887
7.2
%
465,133
7.0
%
441,291
8.0
%
Construction, land development, and other
land
416,996
6.2
%
415,162
6.2
%
446,763
8.1
%
Commercial and industrial
2,420,952
35.7
%
2,311,563
34.6
%
2,061,267
37.4
%
Installment and other
2,855
0.0
%
2,919
0.0
%
1,603
0.0
%
Leasing financing receivables
691,617
10.2
%
665,239
10.0
%
552,174
10.0
%
Total originated loans and leases
$
5,900,456
87.0
%
$
5,767,045
86.3
%
$
5,252,906
95.2
%
Purchased credit deteriorated
loans:
Commercial real estate
$
117,460
1.7
%
$
137,807
2.1
%
$
39,000
0.7
%
Residential real estate
39,535
0.6
%
42,510
0.6
%
30,070
0.6
%
Construction, land development, and other
land
26,418
0.4
%
25,331
0.4
%
345
0.0
%
Commercial and industrial
18,100
0.3
%
19,460
0.3
%
1,745
0.0
%
Installment and other
118
0.0
%
125
0.0
%
134
0.0
%
Total purchased credit deteriorated
loans
$
201,631
3.0
%
$
225,233
3.4
%
$
71,294
1.3
%
Acquired non-credit-deteriorated loans
and leases:
Commercial real estate
$
271,720
4.0
%
$
275,476
4.1
%
$
140,576
2.6
%
Residential real estate
204,589
3.0
%
211,887
3.2
%
27,975
0.5
%
Construction, land development, and other
land
85,553
1.3
%
86,344
1.3
%
—
0.0
%
Commercial and industrial
113,673
1.7
%
117,538
1.7
%
20,793
0.4
%
Installment and other
166
0.0
%
156
0.0
%
85
0.0
%
Leasing financing receivables
426
0.0
%
627
0.0
%
1,703
0.0
%
Total acquired non-credit-deteriorated
loans and leases
$
676,127
10.0
%
$
692,028
10.3
%
$
191,132
3.5
%
Total loans and leases
$
6,778,214
100.0
%
$
6,684,306
100.0
%
$
5,515,332
100.0
%
Allowance for credit losses - loans and
leases
(102,366
)
(101,686
)
(90,465
)
Total loans and leases, net of allowance
for credit losses - loans and leases
$
6,675,848
$
6,582,620
$
5,424,867
The following table presents the balance and activity within the
allowance for credit losses - loans and lease for the periods
indicated:
Three Months Ended
March 31,
December 31,
March 31,
(dollars in thousands)
2024
2023
2023
ACL - loans and leases, beginning of
period
$
101,686
$
105,696
$
81,924
Provision for credit losses - loans and
leases
6,891
8,176
9,712
Net charge-offs - loans and leases
(6,211
)
(12,186
)
(1,171
)
ACL - loans and leases, end of period
$
102,366
$
101,686
$
90,465
Net charge-offs - loans and leases to
average total loans and leases held for investment, net before
ACL
0.37
%
0.73
%
0.09
%
Provision for credit losses - loans and
leases to net charge-offs - loans and leases during the period
1.11
x
0.67
x
8.29
x
BYLINE BANCORP, INC. AND
SUBSIDIARIES
SELECTED BALANCE SHEET TABLES AND
FINANCIAL RATIOS (unaudited)
The following table presents the amounts
of non-performing loans and leases and other real estate owned at
the date indicated:
March 31, 2024
Change from
(dollars in thousands)
March 31, 2024
December 31, 2023
March 31, 2023
December 31, 2023
March 31, 2023
Non-performing assets:
Non-accrual loans and leases
$
67,899
$
64,107
$
46,536
5.9
%
45.9
%
Past due loans and leases 90 days or more
and still accruing interest
—
—
—
—%
—%
Total non-performing loans and leases
$
67,899
$
64,107
$
46,536
5.9
%
45.9
%
Other real estate owned
785
1,200
3,712
(34.6
)%
(78.8
)%
Total non-performing assets
$
68,684
$
65,307
$
50,248
5.2
%
36.7
%
Total non-performing loans and leases as a
percentage of total loans and leases
1.00
%
0.96
%
0.84
%
Total non-performing assets as a
percentage of total assets
0.73
%
0.74
%
0.67
%
Allowance for credit losses - loans and
lease as a percentage of non-performing loans and leases
150.76
%
158.62
%
194.40
%
Non-performing assets guaranteed by
U.S. government:
Non-accrual loans guaranteed
$
7,138
$
4,154
$
2,335
71.8
%
205.6
%
Past due loans 90 days or more and still
accruing interest guaranteed
—
—
—
—%
—%
Total non-performing loans guaranteed
$
7,138
$
4,154
$
2,335
71.8
%
205.6
%
Total non-performing loans and leases not
guaranteed as a percentage of total loans and leases
0.90
%
0.90
%
0.80
%
Total non-performing assets not guaranteed
as a percentage of total assets
0.65
%
0.69
%
0.64
%
The following table presents the composition of deposits at the
dates indicated:
March 31, 2024
Change from
(dollars in thousands)
March 31, 2024
December 31, 2023
March 31, 2023
December 31, 2023
March 31, 2023
Non-interest-bearing demand deposits
$
1,851,727
$
1,905,876
$
1,952,045
(2.8
)%
(5.1
)%
Interest-bearing checking accounts
687,142
577,609
560,837
19.0
%
22.5
%
Money market demand accounts
2,263,819
2,266,030
1,453,688
(0.1
)%
55.7
%
Other savings
524,890
542,532
590,231
(3.3
)%
(11.1
)%
Time deposits (below $250,000)
1,594,290
1,520,082
1,089,785
4.9
%
46.3
%
Time deposits ($250,000 and above)
428,334
364,870
166,066
17.4
%
157.9
%
Total deposits
$
7,350,202
$
7,176,999
$
5,812,652
2.4
%
26.5
%
BYLINE BANCORP, INC. AND SUBSIDIARIES
RECONCILIATION OF NON-GAAP FINANCIAL MEASURES (unaudited)
Non-GAAP Financial Measures
This release contains certain financial information determined
by methods other than in accordance with accounting principles
generally accepted in the United States of America (“GAAP”). These
measures include adjusted net income, adjusted diluted earnings per
share, adjusted efficiency ratio, adjusted non-interest expense to
average assets, tax-equivalent net interest margin, total revenue,
non-interest income to total revenues, adjusted return on average
stockholders’ equity, adjusted return on average assets, pre-tax
pre-provision return on average assets, adjusted pre-tax
pre-provision return on average assets, tangible book value per
common share, tangible common equity to tangible assets, return on
average tangible common stockholders' equity, and adjusted return
on average tangible common stockholders' equity. Management
believes that these non-GAAP financial measures provide useful
information to management and investors that is supplementary to
the Company’s financial condition, results of operations and cash
flows computed in accordance with GAAP; however, management
acknowledges that our non-GAAP financial measures have a number of
limitations. As such, these disclosures should not be viewed as a
substitute for results determined in accordance with GAAP financial
measures that we and other companies use. Management also uses
these measures for peer comparison. See below in the financial
schedules included in this press release for a reconciliation of
the non-GAAP financial measures to the comparable GAAP financial
measures. Additionally, please refer to the Company’s Annual Report
on Form 10-K for the detailed definitions of these non-GAAP
financial measures.
As of or For the Three Months
Ended
March 31,
December 31,
March 31,
(dollars in thousands, except per share
data)
2024
2023
2023
Net income and earnings per share
excluding significant items:
Reported Net Income
$
30,440
$
29,604
$
23,945
Significant items:
Impairment charges on assets held for sale
and ROU assets
194
1,981
20
Merger-related expenses
—
1,035
489
Tax benefit
(52
)
(793
)
(56
)
Adjusted Net Income
$
30,582
$
31,827
$
24,398
Reported Diluted Earnings per
Share
$
0.70
$
0.68
$
0.64
Significant items:
Impairment charges on assets held for sale
and ROU assets
—
0.05
—
Merger-related expenses
—
0.02
0.01
Tax benefit
—
(0.02
)
—
Adjusted Diluted Earnings per
Share
$
0.70
$
0.73
$
0.65
BYLINE BANCORP, INC. AND
SUBSIDIARIES
RECONCILIATION OF NON-GAAP
FINANCIAL MEASURES (continued) (unaudited)
As of or For the Three Months
Ended
(dollars in thousands, except per share
data,
March 31,
December 31,
March 31,
ratios annualized, where
applicable)
2024
2023
2023
Adjusted non-interest expense:
Non-interest expense
$
53,809
$
53,584
$
48,800
Less: Significant items
Impairment charges on assets held for sale
and ROU assets
194
1,981
20
Merger-related expenses
—
1,035
489
Adjusted non-interest expense
$
53,615
$
50,568
$
48,291
Adjusted non-interest expense excluding
amortization of intangible assets:
Adjusted non-interest expense
$
53,615
$
50,568
$
48,291
Less: Amortization of intangible
assets
1,345
1,550
1,455
Adjusted non-interest expense excluding
amortization of intangible assets
$
52,270
$
49,018
$
46,836
Pre-tax pre-provision net
income:
Pre-tax income
$
40,562
$
39,969
$
32,238
Add: Provision for credit losses
6,643
7,235
9,825
Pre-tax pre-provision net income
$
47,205
$
47,204
$
42,063
Adjusted pre-tax pre-provision net
income:
Pre-tax pre-provision net income
$
47,205
$
47,204
$
42,063
Add: Impairment charges on assets held for
sale and ROU assets
194
1,981
20
Add: Merger-related expenses
—
1,035
489
Adjusted pre-tax pre-provision net
income
$
47,399
$
50,220
$
42,572
Tax equivalent net interest
income:
Net interest income
$
85,541
$
86,285
$
75,718
Add: Tax-equivalent adjustment
233
240
208
Net interest income, fully taxable
equivalent
$
85,774
$
86,525
$
75,926
Total revenue:
Net interest income
$
85,541
$
86,285
$
75,718
Add: Non-interest income
15,473
14,503
15,145
Total revenue
$
101,014
$
100,788
$
90,863
Tangible common stockholders'
equity:
Total stockholders' equity
$
1,009,049
$
990,151
$
795,650
Less: Goodwill and other intangibles
202,133
203,478
157,432
Tangible common stockholders' equity
$
806,916
$
786,673
$
638,218
Tangible assets:
Total assets
$
9,410,503
$
8,881,967
$
7,530,346
Less: Goodwill and other intangibles
202,133
203,478
157,432
Tangible assets
$
9,208,370
$
8,678,489
$
7,372,914
Average tangible common stockholders'
equity:
Average total stockholders' equity
$
998,806
$
935,197
$
784,289
Less: Average goodwill and other
intangibles
202,773
204,191
158,181
Average tangible common stockholders'
equity
$
796,033
$
731,006
$
626,108
Average tangible assets:
Average total assets
$
9,030,941
$
8,787,636
$
7,345,151
Less: Average goodwill and other
intangibles
202,773
204,191
158,181
Average tangible assets
$
8,828,168
$
8,583,445
$
7,186,970
Tangible net income available to common
stockholders:
Net income available to common
stockholders
$
30,440
$
29,604
$
23,945
Add: After-tax intangible asset
amortization
986
1,138
1,066
Tangible net income available to common
stockholders
$
31,426
$
30,742
$
25,011
Adjusted tangible net income available
to common stockholders:
Tangible net income available to common
stockholders
$
31,426
$
30,742
$
25,011
Impairment charges on assets held for sale
and ROU assets
194
1,981
20
Merger-related expenses
—
1,035
489
Tax benefit on significant items
(52
)
(793
)
(56
)
Adjusted tangible net income available to
common stockholders
$
31,568
$
32,965
$
25,464
BYLINE BANCORP, INC. AND
SUBSIDIARIES
RECONCILIATION OF NON-GAAP
FINANCIAL MEASURES (continued) (unaudited)
As of or For the Three Months
Ended
(dollars in thousands, except share and
per share
March 31,
December 31,
March 31,
data, ratios annualized, where
applicable)
2024
2023
2023
Pre-tax pre-provision return on average
assets:
Pre-tax pre-provision net income
$
47,205
$
47,204
$
42,063
Average total assets
9,030,941
8,787,636
7,345,151
Pre-tax pre-provision return on average
assets
2.10
%
2.13
%
2.32
%
Adjusted pre-tax pre-provision return
on average assets:
Adjusted pre-tax pre-provision net
income
$
47,399
$
50,220
$
42,572
Average total assets
9,030,941
8,787,636
7,345,151
Adjusted pre-tax pre-provision return on
average assets
2.11
%
2.27
%
2.35
%
Net interest margin, fully taxable
equivalent:
Net interest income, fully taxable
equivalent
$
85,774
$
86,525
$
75,926
Total average interest-earning assets
8,603,582
8,387,877
7,009,144
Net interest margin, fully taxable
equivalent
4.01
%
4.09
%
4.39
%
Non-interest income to total
revenues:
Non-interest income
$
15,473
$
14,503
$
15,145
Total revenues
101,014
100,788
90,863
Non-interest income to total revenues
15.32
%
14.39
%
16.67
%
Adjusted non-interest expense to
average assets:
Adjusted non-interest expense
$
53,615
$
50,568
$
48,291
Average total assets
9,030,941
8,787,636
7,345,151
Adjusted non-interest expense to average
assets
2.39
%
2.28
%
2.67
%
Adjusted efficiency ratio:
Adjusted non-interest expense excluding
amortization of intangible assets
$
52,270
$
49,018
$
46,836
Total revenues
101,014
100,788
90,863
Adjusted efficiency ratio
51.75
%
48.64
%
51.54
%
Adjusted return on average
assets:
Adjusted net income
$
30,582
$
31,827
$
24,398
Average total assets
9,030,941
8,787,636
7,345,151
Adjusted return on average assets
1.36
%
1.44
%
1.35
%
Adjusted return on average
stockholders' equity:
Adjusted net income
$
30,582
$
31,827
$
24,398
Average stockholders' equity
998,806
935,197
784,289
Adjusted return on average stockholders'
equity
12.31
%
13.50
%
12.62
%
Tangible common equity to tangible
assets:
Tangible common equity
$
806,916
$
786,673
$
638,218
Tangible assets
9,208,370
8,678,489
7,372,914
Tangible common equity to tangible
assets
8.76
%
9.06
%
8.66
%
Return on average tangible common
stockholders' equity:
Tangible net income available to common
stockholders
$
31,426
$
30,742
$
25,011
Average tangible common stockholders'
equity
796,033
731,006
626,108
Return on average tangible common
stockholders' equity
15.88
%
16.68
%
16.20
%
Adjusted return on average tangible
common stockholders' equity:
Adjusted tangible net income available to
common stockholders
$
31,568
$
32,965
$
25,464
Average tangible common stockholders'
equity
796,033
731,006
626,108
Adjusted return on average tangible common
stockholders' equity
15.95
%
17.89
%
16.49
%
Tangible book value per share:
Tangible common equity
$
806,916
$
786,673
$
638,218
Common shares outstanding
44,108,387
43,764,056
37,713,427
Tangible book value per share
$
18.29
$
17.98
$
16.92
View source
version on businesswire.com: https://www.businesswire.com/news/home/20240425586707/en/
Investors / Media: Brooks Rennie Investor Relations
Director 312-660-5805 brennie@bylinebank.com
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