Byline Bancorp, Inc. Reports Fourth Quarter and Full Year 2023 Financial Results

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Fourth quarter net income of $29.6 million, $0.68 diluted earnings per share;
Full year net income of $107.9 million, $2.67 diluted earnings per share

CHICAGO, January 25, 2024--(BUSINESS WIRE)--Byline Bancorp, Inc. (NYSE: BY), today reported:

For the quarter

Full Year Highlights

4Q23

3Q23

4Q22

Financial Results (in thousands)

• Net income increased $20.1 million, or 22.9%

Net interest income

$

86,285

$

92,452

$

76,604

Non-interest income

14,503

12,376

11,455

• Positive operating leverage of 6.1%

Total Revenue(1)

100,788

104,828

88,059

driven by 28.0% increase in PTPP

Non-interest expense

53,584

57,891

50,500

Pre-tax pre-provision net income (PTPP)(1)

47,204

46,937

37,559

• Net interest income up $65.3 million,

Provision for credit losses

7,235

8,803

5,826

or 24.6%; NIM up 31 bps to 4.31%

Provision for income taxes

10,365

9,912

7,366

Net Income

$

29,604

$

28,222

$

24,367

• Assets increased by $1.5 billion, through

organic growth and Inland acquisition

Per Share

Diluted EPS

$

0.68

$

0.65

$

0.65

4Q23 Income Statement Highlights

Dividends declared per common share

0.09

0.09

0.09

• Adjusted net income(1) of $31.8 million,

Book value per share

22.62

21.04

20.43

or $0.73 per adjusted diluted share(1)

Tangible book value per share(1)

17.98

16.35

16.19

• Record PTPP(1) of $47.2 million

Balance Sheet & Credit Quality

Total deposits

$

7,176,999

$

6,953,690

$

5,695,121

• Adjusted efficiency ratio(1) of 48.64%

Total loans and leases

6,702,311

6,620,602

5,469,081

Net charge-offs

12,186

5,430

3,179

4Q23 Balance Sheet Highlights

Allowance for credit losses (ACL)

101,686

105,696

81,924

• Deposit growth of $223.3 million, or 12.7%(2)

ACL to total loans and leases held for investment

1.52%

1.60%

1.51%

• Loan growth of $81.7 million, or 4.9%(2)

Select Ratios

Efficiency ratio(1)

51.63%

53.75%

55.53%

• Loan/deposit ratio of 93.39%, down 182 bps

Return on average assets (ROAA)

1.34%

1.30%

1.33%

Return on average stockholders' equity

12.56%

12.11%

12.92%

• Reduced reliance on Brokered CDs and FHLB

Return on average tangible common equity(1)

16.68%

16.15%

17.21%

advances, down $384.1 million

Net Interest Margin (NIM)

4.08%

4.46%

4.39%

Common equity to total assets

11.15%

10.29%

10.40%

• Common equity to assets of 11.15%;

Tangible common equity to tangible assets(1)

9.06%

8.18%

8.42%

TCE/TA(1) of 9.06%, up 88 bps

Common Equity Tier 1

10.35%

10.08%

10.20%

(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, "During 2023, we completed a number of strategic initiatives, including the successful merger and integration of Inland Bancorp, Inc. and delivered sound fourth quarter and strong full-year financial results. We were able to meet the needs of our customers and the markets we serve as total deposits increased $1.5 billion and total loans and leases increased $1.2 billion during the year. This stable balance sheet growth helped us achieve the highest level of revenue in Byline's history. We enter 2024 on solid footing and with great momentum to continue growing the value of our franchise."

Alberto J. Paracchini, President of Byline Bancorp, added, "We are pleased to end the year delivering strong earnings, balanced deposit and loan and lease growth, robust profitability, and disciplined expense management. We remain resolute in serving our customers’ financial needs while diligently focusing on maintaining our asset quality, capital and liquidity positions. I want to thank everyone who works at Byline for their dedication, talent, and contributions to another successful year."

Board Authorizes New Stock Repurchase Program

On December 6, 2023, the Company's Board of Directors approved a new stock repurchase program that authorizes the Company to purchase up to 1.25 million shares of the Company's outstanding common stock. The new program is effective January 1, 2024 until December 31, 2024. Under the previous stock repurchase program that expired on December 31, 2023, the Company did not repurchase any shares during 2023.

Board Declares Cash Dividend of $0.09 per Share

On January 23, 2024, the Company's Board of Directors declared a cash dividend of $0.09 per share, payable on February 20, 2024, to stockholders of record of the Company's common stock as of February 6, 2024.

STATEMENTS OF OPERATIONS HIGHLIGHTS

Net Interest Income

Net interest income for the fourth quarter of 2023 was $86.3 million, a decrease of $6.2 million, or 6.7%, from the third quarter of 2023. The decrease in net interest income was primarily due to an increase of $6.1 million in deposit interest expense due to growth and higher rates, and a decrease of $1.4 million in interest income and fees on loans and leases mainly due to lower accretion income on acquired loans of $5.2 million, offset by growth.

Tax-equivalent net interest margin(1) for the fourth quarter of 2023 was 4.09%, a decrease of 38 basis points compared to the third quarter of 2023. Total net loan accretion income impact on the margin contributed 24 basis points to the net interest margin for the current quarter compared to 50 basis points for the prior quarter.

The average cost of total deposits was 2.42% for the fourth quarter of 2023, an increase of 29 basis points compared to the third quarter of 2023, as a result of higher rates on money market accounts and time deposits. Average non-interest-bearing demand deposits were 27.5% of average total deposits for the current quarter compared to 28.8% during the prior quarter.

Net interest income for the year ended December 31, 2023 was $330.6 million, an increase of $65.3 million, or 24.6%, from the year ended December 31, 2022. The increase in net interest income was primarily due to an increase of $167.6 million in interest income and fees on loans and leases due to growth and accretion income on acquired loans; partially offset by an increase of $101.6 million in deposit interest expense due to higher rates paid and growth.

Tax-equivalent net interest margin(1) for the year ended December 31, 2023 was 4.32%, an increase of 31 basis points compared to year ended December 31, 2022. Total net loan accretion income impact on the margin contributed 22 basis points to the net interest margin for the current year compared to seven basis points for the prior year.

The average cost of total deposits was 1.90% for the year ended December 31, 2023, an increase of 154 basis points compared to the year ended December 31, 2022, as a result of higher rates on money market accounts and time deposits. Average non-interest-bearing demand deposits were 30.7% of average total deposits for the current year compared to 40.4% during the prior year.

Provision for Credit Losses

The provision for credit losses was $7.2 million for the fourth quarter of 2023, a decrease of $1.6 million compared to $8.8 million for the third quarter of 2023, mainly attributed to a $2.7 million provision allocated for the acquired non-credit-deteriorated loans resulting from acquisition accounting taken in the prior quarter, partially offset by impairments on non-performing loans. The provision for credit losses for the current quarter is comprised of a provision for loan and lease losses of $8.2 million and a recapture for unfunded commitments of $940,000.

The provision for credit losses was $31.7 million for the year ended December 31, 2023, an increase of $7.8 million compared to $23.9 million for the year ended December 31, 2022, mainly attributed to an increase in non-performing loans and acquired non-credit-deteriorated loans. The provision for credit losses for the current year is comprised of a provision for loan and lease losses of $32.2 million and a recapture for unfunded commitments of $567,000.

(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.

Non-interest Income

Non-interest income for the fourth quarter of 2023 was $14.5 million, an increase of $2.1 million, or 17.2%, compared to $12.4 million for the third quarter of 2023. The increase in total non-interest income was primarily due to a $2.4 million decrease in the downward valuation of the loan servicing asset reflecting lower discount rate and improved secondary market conditions, and a $1.2 million gain on the change in fair value of equity securities, partially offset by a decrease of $993,000 in the net gains on sales of loans due to a lower volume of loans sold. During the fourth quarter of 2023, we sold $89.1 million of U.S. government guaranteed loans compared to $101.1 million during the third quarter of 2023.

Non-interest income for the year ended December 31, 2023 was $56.3 million, a decrease of $1.0 million, or 1.7%, compared to $57.3 million for the year ended December 31, 2022. The decrease in total non-interest income was primarily due to a decrease in net gains on sales of loans of $9.1 million, partially offset by a $6.7 million decrease in the downward valuation on the loan servicing asset, reflecting a lower discount rate and improved secondary market conditions. During the current year, we sold $348.4 million of U.S. government guaranteed loans compared to $382.2 million during the prior year.

Non-interest Expense

Non-interest expense for the fourth quarter of 2023 was $53.6 million, a decrease of $4.3 million, or 7.4%, from $57.9 million for the third quarter of 2023. The decrease in total non-interest expense was mainly due to a decrease of $3.0 million in salaries and employee benefits, and decreases of $1.5 million in both data processing and legal, audit and other professional, primarily driven by merger-related expenses taken in the third quarter.

Our efficiency ratio was 51.63% for the fourth quarter of 2023 compared to 53.75% for the third quarter of 2023, an improvement of 212 basis points. Excluding significant items, our adjusted efficiency ratio(1) for the fourth quarter 2023 was 48.64%, compared to 47.35% for the third quarter of 2023.

Non-interest expense for the year ended December 31, 2023 was $209.6 million, an increase of $25.5 million, or 13.9%, from $184.1 million for the year ended December 31, 2022. The increase in total non-interest expense was mainly due to the Inland acquisition.

Our efficiency ratio was 52.62% for the year ended December 31, 2023 compared to 54.99% for the year ended December 31, 2022, an improvement of 237 basis points. Excluding significant items, our adjusted efficiency ratio(1) for the current year was 49.61%, compared to 54.70% for the prior year.

Income Taxes

We recorded income tax expense of $10.4 million during the fourth quarter of 2023, compared to $9.9 million during the third quarter of 2023. The effective tax rate was 25.9% and 26.0% for the fourth quarter of 2023 and third quarter of 2023, respectively.

We recorded income tax expense of $37.8 million during the year ended December 31, 2023, compared to $26.7 million during the year ended December 31, 2022. The effective tax rate was 25.9% and 23.3% for the current year and prior year, 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 $8.9 billion as of December 31, 2023, a decrease of $61.4 million, or 0.7%, compared to $8.9 billion at September 30, 2023 and an increase of $1.5 billion from $7.4 billion at December 31, 2022.

The current quarter decrease was primarily due to a decrease in cash and cash equivalents of $202.8 million due to cash management strategies, offset by an increase in net loans and leases of $75.0 million mainly due to the increases in commercial banking and lease financings, and an increase in securities available-for-sale of $102.6 million, driven by an increase in fair values. The increase from the prior year is primarily due to the Inland acquisition and organic loan and lease growth.

Non-performing loans and leases were $64.1 million at December 31, 2023, an increase of $12.0 million from $52.1 million at September 30, 2023, and $28.0 million from $36.0 million at December 31, 2022. The increases were primarily the result of increases to purchased credit deteriorated loans and increases in non-performing commercial real estate loans and commercial and industrial loans.

Allowance for Credit Losses ("ACL") - Loans and Leases

The ACL was $101.7 million as of December 31, 2023, a decrease of $4.0 million, or 3.8%, from $105.7 million at September 30, 2023, mainly due to net charge-offs. The ACL increase of $19.8 million from $81.9 million as of December 31, 2022 is mainly due to loan growth, adjustment for acquired purchase credit deteriorated loans, and an increase in non-performing loans.

Net charge-offs of loans and leases during the fourth quarter of 2023 were $12.2 million, or 0.73% of average loans and leases, on an annualized basis. This was an increase of $6.8 million compared to net charge-offs of $5.4 million, or 0.33% of average loans and leases, during the third quarter of 2023. Increases in the current quarter are primarily due to the resolution of impaired commercial and industrial loans and commercial real estate loans.

Net charge-offs of loans and leases during the year ended December 31, 2023 were $23.1 million, or 0.38% of average loans and leases. This was an increase of $15.1 million compared to net charge-offs of $7.9 million, or 0.16% of average loans and leases, during the year ended December 31, 2022. Increases for the full year were mainly driven by resolutions on purchased credit deteriorated loans and commercial real estate loans.

Deposits and Other Liabilities

Total deposits increased $223.3 million to $7.2 billion at December 31, 2023 compared to $7.0 billion at September 30, 2023 and $5.7 billion as of December 31, 2022. The increase in deposits in the current quarter was mainly due to organic growth. Time deposit growth of $127.2 million was principally due to increased personal time deposits. Money market growth of $203.8 million was due to increases in consumer and commercial deposits. Non-interest-bearing demand deposits decreased $54.0 million primarily due to lower consumer deposits. Increases for the full year were primarily driven by the Inland acquisition and organic deposit growth, and were impacted by shifting deposit mix due to the rising interest rate environment.

Total borrowings and other liabilities were $714.8 million at December 31, 2023, a decrease of $354.8 million from $1.1 billion at September 30, 2023, and a decrease of $187.0 million from $902.0 million at December 31, 2022. These decreases were primarily driven by lower Federal Home Loan Bank advances.

Stockholders’ Equity

Total stockholders’ equity was $990.2 million at December 31, 2023, increase of $70.2 million from $919.9 million at September 30, 2023, and an increase of $224.5 million from December 31, 2022. The quarterly increase was primarily due to increases in other comprehensive income and retained earnings as a result of net income. The full year increase was primarily due to merger consideration and retained earnings as a result of net income.

(1)

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

Conference Call, Webcast and Slide Presentation

We will host a conference call and webcast at 9:00 a.m. Central Time on Friday, January 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 183253. A recorded replay can be accessed through February 9, 2024, by dialing (866) 813-9403; passcode: 953063.

A slide presentation relating to our fourth quarter 2023 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 $8.9 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, 2022. 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,

December 31,

(dollars in thousands)

2023

2023

2022

ASSETS

Cash and due from banks

$

60,431

$

71,248

$

62,274

Interest bearing deposits with other banks

165,705

357,640

117,079

Cash and cash equivalents

226,136

428,888

179,353

Equity and other securities, at fair value

8,743

7,902

7,989

Securities available-for-sale, at fair value

1,342,480

1,239,929

1,174,431

Securities held-to-maturity, at amortized cost

1,157

1,157

2,705

Restricted stock, at cost

16,304

30,505

28,202

Loans held for sale

18,005

7,299

47,823

Loans and leases:

Loans and leases

6,684,306

6,613,303

5,421,258

Allowance for credit losses - loans and leases

(101,686

)

(105,696

)

(81,924

)

Net loans and leases

6,582,620

6,507,607

5,339,334

Servicing assets, at fair value

19,844

19,743

19,172

Premises and equipment, net

66,627

67,121

56,798

Other real estate owned, net

1,200

1,671

4,717

Goodwill and other intangible assets, net

203,478

205,028

158,887

Bank-owned life insurance

96,900

96,268

82,093

Deferred tax assets, net

50,058

89,841

68,213

Accrued interest receivable and other assets

248,415

240,409

193,224

Total assets

$

8,881,967

$

8,943,368

$

7,362,941

LIABILITIES AND STOCKHOLDERS’ EQUITY

LIABILITIES

Non-interest-bearing demand deposits

$

1,905,876

$

1,959,855

$

2,138,645

Interest-bearing deposits

5,271,123

4,993,835

3,556,476

Total deposits

7,176,999

6,953,690

5,695,121

Other borrowings

395,190

713,233

640,399

Subordinated notes, net

73,866

73,822

73,691

Junior subordinated debentures issued to
capital trusts, net

70,452

70,336

37,338

Accrued expenses and other liabilities

175,309

212,342

150,576

Total liabilities

7,891,816

8,023,423

6,597,125

STOCKHOLDERS’ EQUITY

Common stock

451

450

389

Additional paid-in capital

710,488

708,615

598,297

Retained earnings

429,036

403,368

335,794

Treasury stock

(49,707

)

(50,329

)

(51,114

)

Accumulated other comprehensive loss, net of tax

(100,117

)

(142,159

)

(117,550

)

Total stockholders’ equity

990,151

919,945

765,816

Total liabilities and stockholders’ equity

$

8,881,967

$

8,943,368

$

7,362,941

BYLINE BANCORP, INC. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF OPERATIONS (unaudited)

Three Months Ended

Year Ended

(dollars in thousands,

December 31,

September 30,

December 31,

December 31,

December 31,

except per share data)

2023

2023

2022

2023

2022

INTEREST AND DIVIDEND INCOME

Interest and fees on loans and leases

$

124,042

$

125,465

$

85,720

$

440,984

$

273,412

Interest on securities

9,227

8,415

6,569

30,801

25,390

Other interest and dividend income

2,345

2,710

1,515

7,693

2,757

Total interest and dividend income

135,614

136,590

93,804

479,478

301,559

INTEREST EXPENSE

Deposits

43,252

37,163

10,610

121,436

19,796

Other borrowings

3,051

3,981

4,598

17,161

9,322

Subordinated notes and debentures

3,026

2,994

1,992

10,260

7,111

Total interest expense

49,329

44,138

17,200

148,857

36,229

Net interest income

86,285

92,452

76,604

330,621

265,330

PROVISION FOR CREDIT LOSSES

7,235

8,803

5,826

31,653

23,879

Net interest income after provision for
credit losses

79,050

83,649

70,778

298,968

241,451

NON-INTEREST INCOME

Fees and service charges on deposits

2,486

2,372

2,081

9,211

8,152

Loan servicing revenue

3,377

3,369

3,293

13,503

13,479

Loan servicing asset revaluation

(1,234

)

(3,646

)

(3,534

)

(5,089

)

(11,743

)

ATM and interchange fees

1,082

1,205

1,250

4,462

4,437

Net realized gains on securities available-for-sale

—

—

—

—

50

Change in fair value of equity securities, net

841

(313

)

710

1,071

(603

)

Net gains on sales of loans

5,480

6,473

5,509

22,805

31,899

Wealth management and trust income

1,256

939

864

4,158

3,807

Other non-interest income

1,215

1,977

1,282

6,194

7,836

Total non-interest income

14,503

12,376

11,455

56,315

57,314

NON-INTEREST EXPENSE

Salaries and employee benefits

31,974

34,969

31,808

126,979

118,051

Occupancy and equipment expense, net

4,346

5,314

3,532

18,508

16,988

Impairment charge on assets held for sale

1,980

—

372

2,000

372

Loan and lease related expenses

649

836

1,126

2,936

1,707

Legal, audit, and other professional fees

2,352

3,805

3,204

12,946

10,357

Data processing

4,982

6,472

3,406

19,509

13,358

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

89

111

221

385

708

Other intangible assets amortization expense

1,550

1,551

1,596

6,011

6,671

Other non-interest expense

5,662

4,833

5,235

20,329

15,870

Total non-interest expense

53,584

57,891

50,500

209,603

184,082

INCOME BEFORE PROVISION FOR INCOME TAXES

39,969

38,134

31,733

145,680

114,683

PROVISION FOR INCOME TAXES

10,365

9,912

7,366

37,802

26,729

NET INCOME

$

29,604

$

28,222

$

24,367

$

107,878

$

87,954

Dividends on preferred shares

—

—

—

—

196

INCOME AVAILABLE TO COMMON STOCKHOLDERS

$

29,604

$

28,222

$

24,367

$

107,878

$

87,758

EARNINGS PER COMMON SHARE

Basic

$

0.69

$

0.66

$

0.66

$

2.69

$

2.37

Diluted

$

0.68

$

0.65

$

0.65

$

2.67

$

2.34

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

December 31,

September 30,

December 31,

December 31,

December 31,

and per share data)

2023

2023

2022

2023

2022

Earnings per Common Share

Basic earnings per common share

$

0.69

$

0.66

$

0.66

$

2.69

$

2.37

Diluted earnings per common share

$

0.68

$

0.65

$

0.65

$

2.67

$

2.34

Adjusted diluted earnings per common share(1)(3)

$

0.73

$

0.77

$

0.67

$

2.89

$

2.36

Weighted average common shares outstanding (basic)

43,065,294

43,025,927

36,856,221

40,045,208

36,972,972

Weighted average common shares outstanding (diluted)

43,537,778

43,458,110

37,360,113

40,445,553

37,476,120

Common shares outstanding

43,764,056

43,719,203

37,492,775

43,764,056

37,492,775

Cash dividends per common share

$

0.09

$

0.09

$

0.09

$

0.36

$

0.36

Dividend payout ratio on common stock

13.24

%

13.85

%

13.85

%

13.48

%

15.38

%

Book value per common share

$

22.62

$

21.04

$

20.43

$

22.62

$

20.43

Tangible book value per common share(1)

$

17.98

$

16.35

$

16.19

$

17.98

$

16.19

Key Ratios and Performance Metrics
(annualized where applicable)

Net interest margin

4.08

%

4.46

%

4.39

%

4.31

%

4.00

%

Net interest margin, fully taxable equivalent (1)(4)

4.09

%

4.47

%

4.40

%

4.32

%

4.01

%

Average cost of deposits

2.42

%

2.13

%

0.73

%

1.90

%

0.36

%

Efficiency ratio(1)(2)

51.63

%

53.75

%

55.53

%

52.62

%

54.99

%

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

48.64

%

47.35

%

54.50

%

49.61

%

54.70

%

Non-interest income to total revenues(1)

14.39

%

11.81

%

13.01

%

14.55

%

17.76

%

Non-interest expense to average assets

2.42

%

2.66

%

2.76

%

2.60

%

2.62

%

Adjusted non-interest expense to average assets(1)(3)

2.28

%

2.35

%

2.71

%

2.46

%

2.61

%

Return on average stockholders' equity

12.56

%

12.11

%

12.92

%

12.50

%

11.33

%

Adjusted return on average stockholders' equity(1)(3)

13.50

%

14.30

%

13.34

%

13.53

%

11.43

%

Return on average assets

1.34

%

1.30

%

1.33

%

1.34

%

1.25

%

Adjusted return on average assets(1)(3)

1.44

%

1.53

%

1.37

%

1.45

%

1.26

%

Pre-tax pre-provision return on average assets(1)

2.13

%

2.16

%

2.05

%

2.20

%

1.97

%

Adjusted pre-tax pre-provision return on average assets(1)(3)

2.27

%

2.46

%

2.10

%

2.35

%

1.99

%

Return on average tangible common stockholders' equity(1)

16.68

%

16.15

%

17.21

%

16.46

%

15.15

%

Adjusted return on average tangible common
stockholders' equity(1)(3)

17.89

%

18.95

%

17.75

%

17.76

%

15.28

%

Non-interest-bearing deposits to total deposits

26.56

%

28.18

%

37.55

%

26.56

%

37.55

%

Loans and leases held for sale and loans and lease
held for investment to total deposits

93.39

%

95.21

%

96.03

%

93.39

%

96.03

%

Deposits to total liabilities

90.94

%

86.67

%

86.33

%

90.94

%

86.33

%

Deposits per branch

$

149,521

$

144,869

$

149,872

$

149,521

$

149,872

Asset Quality Ratios

Non-performing loans and leases to total loans and leases
held for investment, net before ACL

0.96

%

0.79

%

0.66

%

0.96

%

0.66

%

ACL to total loans and leases held for investment, net before ACL

1.52

%

1.60

%

1.51

%

1.52

%

1.51

%

Net charge-offs to average total loans and leases held for
investment, net before ACL - loans and leases

0.73

%

0.33

%

0.24

%

0.38

%

0.16

%

Capital Ratios

Common equity to total assets

11.15

%

10.29

%

10.40

%

11.15

%

10.40

%

Tangible common equity to tangible assets(1)

9.06

%

8.18

%

8.42

%

9.06

%

8.42

%

Leverage ratio

10.86

%

10.75

%

10.29

%

10.86

%

10.29

%

Common equity tier 1 capital ratio

10.35

%

10.08

%

10.20

%

10.35

%

10.20

%

Tier 1 capital ratio

11.39

%

11.12

%

10.85

%

11.39

%

10.85

%

Total capital ratio

13.38

%

13.17

%

13.00

%

13.38

%

13.00

%

(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

December 31, 2023

September 30, 2023

December 31, 2022

(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

$

201,862

$

1,822

3.58

%

$

195,019

$

1,724

3.51

%

$

89,367

$

234

1.04

%

Loans and leases(1)

6,632,827

124,042

7.42

%

6,484,875

125,465

7.68

%

5,389,210

85,720

6.31

%

Taxable securities

1,389,580

8,848

2.53

%

1,371,979

8,465

2.45

%

1,288,750

7,043

2.17

%

Tax-exempt securities(2)

163,608

1,142

2.77

%

168,805

1,184

2.78

%

155,562

1,021

2.60

%

Total interest-earning assets

$

8,387,877

$

135,854

6.43

%

$

8,220,678

$

136,838

6.60

%

$

6,922,889

$

94,018

5.39

%

Allowance for credit losses -
loans and leases

(106,474

)

(108,315

)

(81,815

)

All other assets

506,233

521,982

424,979

TOTAL ASSETS

$

8,787,636

$

8,634,345

$

7,266,053

LIABILITIES AND STOCKHOLDERS’
EQUITY

Deposits

Interest checking

$

570,706

$

2,335

1.62

%

$

579,917

$

2,208

1.51

%

$

596,627

$

1,902

1.27

%

Money market accounts

2,159,841

18,730

3.44

%

2,040,476

16,676

3.24

%

1,472,050

5,458

1.47

%

Savings

560,372

208

0.15

%

594,555

228

0.15

%

647,536

243

0.15

%

Time deposits

1,861,279

21,979

4.68

%

1,706,531

18,051

4.20

%

788,856

3,007

1.51

%

Total interest-bearing
deposits

5,152,198

43,252

3.33

%

4,921,479

37,163

3.00

%

3,505,069

10,610

1.20

%

Other borrowings

395,711

3,051

3.06

%

463,561

3,981

3.41

%

514,518

4,598

3.55

%

Subordinated notes and
debentures

144,230

3,026

8.32

%

144,171

2,994

8.24

%

110,947

1,992

7.12

%

Total borrowings

539,941

6,077

4.47

%

607,732

6,975

4.55

%

625,465

6,590

4.18

%

Total interest-bearing liabilities

$

5,692,139

$

49,329

3.44

%

$

5,529,211

$

44,138

3.17

%

$

4,130,534

$

17,200

1.65

%

Non-interest-bearing
demand deposits

1,950,644

1,987,996

2,235,464

Other liabilities

209,656

192,860

151,763

Total stockholders’ equity

935,197

924,278

748,292

TOTAL LIABILITIES AND
STOCKHOLDERS’ EQUITY

$

8,787,636

$

8,634,345

$

7,266,053

Net interest spread(3)

2.99

%

3.43

%

3.74

%

Net interest income, fully
taxable equivalent

$

86,525

$

92,700

$

76,818

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

4.09

%

4.47

%

4.40

%

Less: Tax-equivalent adjustment

240

0.01

%

248

0.01

%

214

0.01

%

Net interest income

$

86,285

$

92,452

$

76,604

Net interest margin(4)

4.08

%

4.46

%

4.39

%

Net loan accretion impact
on margin

$

5,110

0.24

%

$

10,276

0.50

%

$

369

0.02

%

(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

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

For the Year Ended

December 31, 2023

December 31, 2022

(dollars in thousands)

Average
Balance(5)

Interest
Inc / Exp

Average
Yield /
Rate

Average
Balance(5)

Interest
Inc / Exp

Average
Yield /
Rate

ASSETS

Cash and cash equivalents

$

157,754

$

5,029

3.19

%

$

76,978

$

547

0.71

%

Loans and leases(1)

6,038,797

440,984

7.30

%

5,073,288

273,412

5.39

%

Taxable securities

1,322,379

30,068

2.27

%

1,316,147

24,156

1.84

%

Tax-exempt securities(2)

158,918

4,300

2.71

%

164,051

4,359

2.66

%

Total interest-earning assets

$

7,677,848

$

480,381

6.26

%

$

6,630,464

$

302,474

4.56

%

Allowance for credit losses - loans and leases

(98,067

)

(74,233

)

All other assets

468,550

462,548

TOTAL ASSETS

$

8,048,331

$

7,018,779

LIABILITIES AND STOCKHOLDERS’
EQUITY

Deposits

Interest checking

$

574,335

$

9,212

1.60

%

$

593,903

$

3,572

0.60

%

Money market accounts

1,802,675

53,933

2.99

%

1,357,371

10,484

0.77

%

Savings

585,820

883

0.15

%

658,968

649

0.10

%

Time deposits

1,468,836

57,408

3.91

%

691,650

5,091

0.74

%

Total interest-bearing deposits

4,431,666

121,436

2.74

%

3,301,892

19,796

0.60

%

Other borrowings

484,984

17,125

3.53

%

478,374

9,308

1.95

%

Federal funds purchased

685

36

5.30

%

630

14

2.32

%

Subordinated notes and debentures

127,825

10,260

8.03

%

110,723

7,111

6.42

%

Total borrowings

613,494

27,421

4.47

%

589,727

16,433

2.79

%

Total interest-bearing liabilities

$

5,045,160

$

148,857

2.95

%

$

3,891,619

$

36,229

0.93

%

Non-interest-bearing demand deposits

1,965,663

2,236,615

Other liabilities

174,416

114,320

Total stockholders’ equity

863,092

776,225

TOTAL LIABILITIES AND
STOCKHOLDERS’ EQUITY

$

8,048,331

$

7,018,779

Net interest spread(3)

3.31

%

3.63

%

Net interest income, fully
taxable equivalent

$

331,524

$

266,245

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

4.32

%

4.01

%

Less: Tax-equivalent adjustment

903

0.01

%

915

0.01

%

Net interest income

$

330,621

$

265,330

Net interest margin(4)

4.31

%

4.00

%

Net loan accretion impact on margin

$

16,726

0.22

%

$

4,555

0.07

%

(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:

December 31, 2023

September 30, 2023

December 31, 2022

(dollars in thousands)

Amount

% of Total

Amount

% of Total

Amount

% of Total

Originated loans and leases:

Commercial real estate

$

1,907,029

28.5

%

$

1,837,531

27.8

%

$

1,712,152

31.6

%

Residential real estate

465,133

7.0

%

454,456

6.9

%

426,226

7.9

%

Construction, land development, and
other land

415,162

6.2

%

406,334

6.1

%

438,617

8.1

%

Commercial and industrial

2,311,563

34.6

%

2,286,058

34.6

%

2,030,616

37.5

%

Installment and other

2,919

0.0

%

2,968

0.0

%

1,410

0.0

%

Leasing financing receivables

665,239

10.0

%

641,032

9.7

%

521,689

9.6

%

Total originated loans and leases

$

5,767,045

86.3

%

$

5,628,379

85.1

%

$

5,130,710

94.7

%

Purchased credit deteriorated loans:

Commercial real estate

$

137,807

2.1

%

$

154,573

2.3

%

$

45,143

0.8

%

Residential real estate

42,510

0.6

%

47,485

0.7

%

32,228

0.6

%

Construction, land development, and
other land

25,331

0.4

%

29,587

0.5

%

372

0.0

%

Commercial and industrial

19,460

0.3

%

21,014

0.3

%

2,192

0.0

%

Installment and other

125

0.0

%

125

0.0

%

140

0.0

%

Total purchased credit deteriorated loans

$

225,233

3.4

%

$

252,784

3.8

%

$

80,075

1.4

%

Acquired non-credit-deteriorated loans
and leases:

Commercial real estate

$

275,476

4.1

%

$

296,656

4.5

%

$

152,193

2.8

%

Residential real estate

211,887

3.2

%

220,091

3.4

%

31,508

0.6

%

Construction, land development, and
other land

86,344

1.3

%

87,087

1.3

%

—

0.0

%

Commercial and industrial

117,538

1.7

%

127,253

1.9

%

24,266

0.5

%

Installment and other

156

0.0

%

153

0.0

%

209

0.0

%

Leasing financing receivables

627

0.0

%

900

0.0

%

2,297

0.0

%

Total acquired non-credit-deteriorated
loans and leases

$

692,028

10.3

%

$

732,140

11.1

%

$

210,473

3.9

%

Total loans and leases

$

6,684,306

100.0

%

$

6,613,303

100.0

%

$

5,421,258

100.0

%

Allowance for credit losses - loans and leases

(101,686

)

(105,696

)

(81,924

)

Total loans and leases, net of allowance for
credit losses - loans and leases

$

6,582,620

$

6,507,607

$

5,339,334

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

Three Months Ended

Year Ended

December 31,

September 30,

December 31,

December 31,

December 31,

(dollars in thousands)

2023

2023

2022

2023

2022

ACL - loans and leases, beginning of period

$

105,696

$

92,665

$

79,704

$

81,924

$

55,012

Adjustment for acquired PCD loans

—

10,596

—

10,596

—

Adjustment for CECL adoption

—

—

—

—

12,168

Provision for credit losses - loans and leases

8,176

7,865

5,399

32,220

22,674

Net charge-offs - loans and leases

(12,186

)

(5,430

)

(3,179

)

(23,054

)

(7,930

)

ACL - loans and leases, end of period

$

101,686

$

105,696

$

81,924

$

101,686

$

81,924

Net charge-offs - loans and leases to average total
loans and leases held for investment, net before ACL

0.73

%

0.33

%

0.24

%

0.38

%

0.16

%

Provision for credit losses - loans and leases
to net charge-offs - loans and leases during the period

0.67

x

1.45

x

1.70

x

1.40

x

2.86

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:

December 31, 2023

Change from

(dollars in thousands)

December 31,
2023

September 30,
2023

December 31,
2022

September 30,
2023

December 31,
2022

Non-performing assets:

Non-accrual loans and leases

$

64,107

$

52,070

$

36,027

23.1

%

77.9

%

Past due loans and leases 90 days or more
and still accruing interest

—

—

—

—%

—%

Total non-performing loans and leases

$

64,107

$

52,070

$

36,027

23.1

%

77.9

%

Other real estate owned

1,200

1,671

4,717

(28.2

)%

(74.6

)%

Total non-performing assets

$

65,307

$

53,741

$

40,744

21.5

%

60.3

%

Total non-performing loans and leases as a
percentage of total loans and leases

0.96

%

0.79

%

0.66

%

Total non-performing assets as a percentage
of total assets

0.74

%

0.60

%

0.55

%

Allowance for credit losses - loans and lease
as a percentage of non-performing
loans and leases

158.62

%

202.99

%

227.40

%

Non-performing assets guaranteed by
U.S. government:

Non-accrual loans guaranteed

$

4,154

$

3,588

$

2,225

15.8

%

86.7

%

Past due loans 90 days or more and still
accruing interest guaranteed

—

—

—

—%

—%

Total non-performing loans guaranteed

$

4,154

$

3,588

$

2,225

15.8

%

86.7

%

Total non-performing loans and leases
not guaranteed as a percentage of total
loans and leases

0.90

%

0.73

%

0.62

%

Total non-performing assets not guaranteed
as a percentage of total assets

0.69

%

0.56

%

0.52

%

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

December 31, 2023

Change from

(dollars in thousands)

December 31,
2023

September 30,
2023

December 31,
2022

September 30,
2023

December 31,
2022

Non-interest-bearing demand deposits

$

1,905,876

$

1,959,855

$

2,138,645

(2.8

)%

(10.9

)%

Interest-bearing checking accounts

577,609

592,771

592,098

(2.6

)%

(2.4

)%

Money market demand accounts

2,266,030

2,062,252

1,415,653

9.9

%

60.1

%

Other savings

542,532

581,073

625,798

(6.6

)%

(13.3

)%

Time deposits (below $250,000)

1,520,082

1,446,485

762,250

5.0

%

99.4

%

Time deposits ($250,000 and above)

364,870

311,254

160,677

17.4

%

127.1

%

Total deposits

$

7,176,999

$

6,953,690

$

5,695,121

3.2

%

26.0

%

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

As of or For the Year Ended

December 31,

September 30,

December 31,

December 31,

December 31,

(dollars in thousands, except per share data)

2023

2023

2022

2023

2022

Net income and earnings per share excluding significant items:

Reported Net Income

$

29,604

$

28,222

$

24,367

$

107,878

$

87,954

Significant items:

Impairment charges on assets held for sale and ROU assets

1,981

394

372

2,395

372

Merger-related expenses

1,035

6,307

538

9,222

538

Tax benefit

(793

)

(1,617

)

(118

)

(2,696

)

(118

)

Adjusted Net Income

$

31,827

$

33,306

$

25,159

$

116,799

$

88,746

Reported Diluted Earnings per Share

$

0.68

$

0.65

$

0.65

$

2.67

$

2.34

Significant items:

Impairment charges on assets held for sale and ROU assets

0.05

0.01

0.01

0.06

0.01

Merger-related expenses

0.02

0.15

0.01

0.23

0.01

Tax benefit

(0.02

)

(0.04

)

—

(0.07

)

—

Adjusted Diluted Earnings per Share

$

0.73

$

0.77

$

0.67

$

2.89

$

2.36

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,

December 31,

September 30,

December 31,

December 31,

December 31,

ratios annualized, where applicable)

2023

2023

2022

2023

2022

Adjusted non-interest expense:

Non-interest expense

$

53,584

$

57,891

$

50,500

$

209,603

$

184,082

Less: Significant items

Impairment charges on assets held for sale and ROU assets

1,981

394

372

2,395

372

Merger-related expenses

1,035

6,307

538

9,222

538

Adjusted non-interest expense

$

50,568

$

51,190

$

49,590

$

197,986

$

183,172

Adjusted non-interest expense excluding
amortization of intangible assets:

Adjusted non-interest expense

$

50,568

$

51,190

$

49,590

$

197,986

$

183,172

Less: Amortization of intangible assets

1,550

1,551

1,596

6,011

6,671

Adjusted non-interest expense excluding
amortization of intangible assets

$

49,018

$

49,639

$

47,994

$

191,975

$

176,501

Pre-tax pre-provision net income:

Pre-tax income

$

39,969

$

38,134

$

31,733

$

145,680

$

114,683

Add: Provision for credit losses

7,235

8,803

5,826

31,653

23,879

Pre-tax pre-provision net income

$

47,204

$

46,937

$

37,559

$

177,333

$

138,562

Adjusted pre-tax pre-provision net income:

Pre-tax pre-provision net income

$

47,204

$

46,937

$

37,559

$

177,333

$

138,562

Add: Impairment charges on assets held for sale
and ROU assets

1,981

394

372

2,395

372

Add: Merger-related expenses

1,035

6,307

538

9,222

538

Adjusted pre-tax pre-provision net income

$

50,220

$

53,638

$

38,469

$

188,950

$

139,472

Tax equivalent net interest income:

Net interest income

$

86,285

$

92,452

$

76,604

$

330,621

$

265,330

Add: Tax-equivalent adjustment

240

248

214

903

915

Net interest income, fully taxable equivalent

$

86,525

$

92,700

$

76,818

$

331,524

$

266,245

Total revenue:

Net interest income

$

86,285

$

92,452

$

76,604

$

330,621

$

265,330

Add: Non-interest income

14,503

12,376

11,455

56,315

$

57,314

Total revenue

$

100,788

$

104,828

$

88,059

$

386,936

$

322,644

Tangible common stockholders' equity:

Total stockholders' equity

$

990,151

$

919,945

$

765,816

$

990,151

$

765,816

Less: Goodwill and other intangibles

203,478

205,028

158,887

203,478

158,887

Tangible common stockholders' equity

$

786,673

$

714,917

$

606,929

$

786,673

$

606,929

Tangible assets:

Total assets

$

8,881,967

$

8,943,368

$

7,362,941

$

8,881,967

$

7,362,941

Less: Goodwill and other intangibles

203,478

205,028

158,887

203,478

158,887

Tangible assets

$

8,678,489

$

8,738,340

$

7,204,054

$

8,678,489

$

7,204,054

Average tangible common stockholders' equity:

Average total stockholders' equity

$

935,197

$

924,278

$

748,292

$

863,092

$

776,225

Less: Average preferred stock

—

—

—

—

2,459

Less: Average goodwill and other intangibles

204,191

202,978

159,680

180,717

162,203

Average tangible common stockholders' equity

$

731,006

$

721,300

$

588,612

$

682,375

$

611,563

Average tangible assets:

Average total assets

$

8,787,636

$

8,634,345

$

7,266,053

$

8,048,331

$

7,018,779

Less: Average goodwill and other intangibles

204,191

202,978

159,680

180,717

162,203

Average tangible assets

$

8,583,445

$

8,431,367

$

7,106,373

$

7,867,614

$

6,856,576

Tangible net income available to common stockholders:

Net income available to common stockholders

$

29,604

$

28,222

$

24,367

$

107,878

$

87,758

Add: After-tax intangible asset amortization

1,138

1,137

1,170

4,408

4,890

Tangible net income available to common stockholders

$

30,742

$

29,359

$

25,537

$

112,286

$

92,648

Adjusted tangible net income available to common
stockholders:

Tangible net income available to common stockholders

$

30,742

$

29,359

$

25,537

$

112,286

$

92,648

Impairment charges on assets held for sale and ROU assets

1,981

394

372

2,395

372

Merger-related expenses

1,035

6,307

538

9,222

538

Tax benefit on significant items

(793

)

(1,617

)

(118

)

(2,696

)

(118

)

Adjusted tangible net income available to
common stockholders

$

32,965

$

34,443

$

26,329

$

121,207

$

93,440

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

December 31,

September 30,

December 31,

December 31,

December 31,

data, ratios annualized, where applicable)

2023

2023

2022

2023

2022

Pre-tax pre-provision return on average assets:

Pre-tax pre-provision net income

$

47,204

$

46,937

$

37,559

$

177,333

$

138,562

Average total assets

8,787,636

8,634,345

7,266,053

8,048,331

7,018,779

Pre-tax pre-provision return on average assets

2.13

%

2.16

%

2.05

%

2.20

%

1.97

%

Adjusted pre-tax pre-provision return on average assets:

Adjusted pre-tax pre-provision net income

$

50,220

$

53,638

$

38,469

$

188,950

$

139,472

Average total assets

8,787,636

8,634,345

7,266,053

8,048,331

7,018,779

Adjusted pre-tax pre-provision return on average assets

2.27

%

2.46

%

2.10

%

2.35

%

1.99

%

Net interest margin, fully taxable equivalent:

Net interest income, fully taxable equivalent

$

86,525

$

92,700

$

76,818

$

331,524

$

266,245

Total average interest-earning assets

8,387,877

8,220,678

6,922,889

7,677,848

6,630,464

Net interest margin, fully taxable equivalent

4.09

%

4.47

%

4.40

%

4.32

%

4.01

%

Non-interest income to total revenues:

Non-interest income

$

14,503

$

12,376

$

11,455

$

56,315

$

57,314

Total revenues

100,788

104,828

88,059

386,936

322,644

Non-interest income to total revenues

14.39

%

11.81

%

13.01

%

14.55

%

17.76

%

Adjusted non-interest expense to average assets:

Adjusted non-interest expense

$

50,568

$

51,190

$

49,590

$

197,986

$

183,172

Average total assets

8,787,636

8,634,345

7,266,053

8,048,331

7,018,779

Adjusted non-interest expense to average assets

2.28

%

2.35

%

2.71

%

2.46

%

2.61

%

Adjusted efficiency ratio:

Adjusted non-interest expense excluding amortization of
intangible assets

$

49,018

$

49,639

$

47,994

$

191,975

$

176,501

Total revenues

100,788

104,828

88,059

386,936

322,644

Adjusted efficiency ratio

48.64

%

47.35

%

54.50

%

49.61

%

54.70

%

Adjusted return on average assets:

Adjusted net income

$

31,827

$

33,306

$

25,159

$

116,799

$

88,746

Average total assets

8,787,636

8,634,345

7,266,053

8,048,331

7,018,779

Adjusted return on average assets

1.44

%

1.53

%

1.37

%

1.45

%

1.26

%

Adjusted return on average stockholders' equity:

Adjusted net income

$

31,827

$

33,306

$

25,159

$

116,799

$

88,746

Average stockholders' equity

935,197

924,278

748,292

863,092

776,225

Adjusted return on average stockholders' equity

13.50

%

14.30

%

13.34

%

13.53

%

11.43

%

Tangible common equity to tangible assets:

Tangible common equity

$

786,673

$

714,917

$

606,929

$

786,673

$

606,929

Tangible assets

8,678,489

8,738,340

7,204,054

8,678,489

7,204,054

Tangible common equity to tangible assets

9.06

%

8.18

%

8.42

%

9.06

%

8.42

%

Return on average tangible common stockholders' equity:

Tangible net income available to common stockholders

$

30,742

$

29,359

$

25,537

$

112,286

$

92,648

Average tangible common stockholders' equity

731,006

721,300

588,612

682,375

611,563

Return on average tangible common stockholders' equity

16.68

%

16.15

%

17.21

%

16.46

%

15.15

%

Adjusted return on average tangible common
stockholders' equity:

Adjusted tangible net income available to common
stockholders

$

32,965

$

34,443

$

26,329

$

121,207

$

93,440

Average tangible common stockholders' equity

731,006

721,300

588,612

682,375

611,563

Adjusted return on average tangible common
stockholders' equity

17.89

%

18.95

%

17.75

%

17.76

%

15.28

%

Tangible book value per share:

Tangible common equity

$

786,673

$

714,917

$

606,929

$

786,673

$

606,929

Common shares outstanding

43,764,056

43,719,203

37,492,775

43,764,056

37,492,775

Tangible book value per share

$

17.98

$

16.35

$

16.19

$

17.98

$

16.19

View source version on businesswire.com: https://www.businesswire.com/news/home/20240125027265/en/

Contacts

Investors/Media:
Brooks Rennie
Investor Relations Director
312-660-5805
brennie@bylinebank.com

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