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

Exhibit 99.1

 

Byline Bancorp, Inc. Reports Third Quarter 2017 Financial Results

 

Third Quarter 2017 Summary

 

Net income of $9.8 million

 

Net interest margin improves to 4.18%

 

Loan originations of $135.8 million

 

Return on average assets improves to 1.17%

 

Loan to deposit ratio increases to 88.01%

 

Chicago, IL, October 26, 2017 – Byline Bancorp, Inc. (NYSE: BY), the parent company of Byline Bank, today reported net income of $9.8 million, or $0.32 per diluted share, for the third quarter of 2017, compared with net income of $6.1 million, or $(0.18) per diluted share, for the second quarter of 2017, and net income of $1.6 million, or $0.08 per diluted share, for the third quarter of 2016.  

“We delivered a strong quarter driven by solid loan and lease growth and an expanding net interest margin,” said Alberto J. Paracchini, President and Chief Executive Officer of Byline Bancorp, Inc.  “We are gaining more traction with our business development efforts as we’ve moved through the year.  We had $135.8 million in gross loan originations during the third quarter, which resulted in double-digit annualized loan and lease growth despite consistent elevated pay-off activity. Our net interest margin is benefiting from a better mix of earning assets, higher loan yields and relatively stable funding costs.  As a result, we are seeing a positive impact on our margin and a higher level of net interest income,” said Mr. Paracchini.

STATEMENTS OF OPERATIONS

Net Interest Income

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

 

 

Three Months Ended

 

 

Nine Months Ended

 

 

 

September 30,

 

 

June 30,

 

 

March 31,

 

 

September 30,

 

 

September 30,

 

 

September 30,

 

(dollars in thousands)

 

2017

 

 

2017

 

 

2017

 

 

2016

 

 

2017

 

 

2016

 

INTEREST AND DIVIDEND

   INCOME

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest and fees on loans and

   leases

 

$

30,933

 

 

$

29,181

 

 

$

28,396

 

 

$

19,081

 

 

$

88,510

 

 

$

56,334

 

Interest on taxable securities

 

 

3,720

 

 

 

3,703

 

 

 

3,790

 

 

 

3,312

 

 

 

11,213

 

 

 

10,492

 

Interest on tax-exempt securities

 

 

174

 

 

 

151

 

 

 

133

 

 

 

152

 

 

 

458

 

 

 

509

 

Other interest and dividend

   income

 

 

217

 

 

 

280

 

 

 

169

 

 

 

112

 

 

 

666

 

 

 

254

 

Total interest and dividend

   income

 

 

35,044

 

 

 

33,315

 

 

 

32,488

 

 

 

22,657

 

 

 

100,847

 

 

 

67,589

 

INTEREST EXPENSE

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Deposits

 

 

2,112

 

 

 

1,923

 

 

 

1,483

 

 

 

1,063

 

 

 

5,518

 

 

 

3,281

 

Federal Home Loan Bank advances

 

 

850

 

 

 

772

 

 

 

660

 

 

 

200

 

 

 

2,282

 

 

 

371

 

Subordinated debentures and other

   borrowings

 

 

670

 

 

 

809

 

 

 

807

 

 

 

529

 

 

 

2,286

 

 

 

1,571

 

Total interest expense

 

 

3,632

 

 

 

3,504

 

 

 

2,950

 

 

 

1,792

 

 

 

10,086

 

 

 

5,223

 

Net interest income

 

$

31,412

 

 

$

29,811

 

 

$

29,538

 

 

$

20,865

 

 

$

90,761

 

 

$

62,366

 

 


Byline Bancorp, Inc.

Page 2 of 17

The following table presents the quarter-to-date schedule of average interest-earning assets and average interest-bearing liabilities for the periods indicated:

 

 

For the Three Months Ended

 

 

 

 

 

 

 

September 30,

 

 

 

 

 

 

 

 

 

 

June 30,

 

 

 

 

 

 

 

2017

 

 

2017

 

(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

 

$

48,354

 

 

$

106

 

 

 

0.87

%

 

$

80,327

 

 

$

174

 

 

 

0.87

%

Loans and leases(1)

 

 

2,193,076

 

 

 

30,933

 

 

 

5.60

%

 

 

2,153,482

 

 

 

29,181

 

 

 

5.44

%

Securities available-for-sale(2)

 

 

602,146

 

 

 

3,181

 

 

 

2.10

%

 

 

605,688

 

 

 

3,134

 

 

 

2.08

%

Securities held-to-maturity

 

 

111,345

 

 

 

650

 

 

 

2.32

%

 

 

116,931

 

 

 

675

 

 

 

2.32

%

Tax-exempt securities

 

 

26,166

 

 

 

174

 

 

 

2.63

%

 

 

21,413

 

 

 

151

 

 

 

2.83

%

Total interest-earning assets

 

$

2,981,087

 

 

$

35,044

 

 

 

4.66

%

 

$

2,977,841

 

 

$

33,315

 

 

 

4.49

%

Allowance for loan and lease losses

 

 

(14,570

)

 

 

 

 

 

 

 

 

 

 

(12,377

)

 

 

 

 

 

 

 

 

All other assets

 

 

340,669

 

 

 

 

 

 

 

 

 

 

 

319,201

 

 

 

 

 

 

 

 

 

TOTAL ASSETS

 

$

3,307,186

 

 

 

 

 

 

 

 

 

 

$

3,284,665

 

 

 

 

 

 

 

 

 

LIABILITIES AND STOCKHOLDERS’

   EQUITY

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Deposits

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest checking

 

$

186,447

 

 

$

29

 

 

 

0.06

%

 

$

187,825

 

 

$

31

 

 

 

0.07

%

Money market accounts

 

 

388,365

 

 

 

275

 

 

 

0.28

%

 

 

374,383

 

 

 

226

 

 

 

0.24

%

Savings

 

 

441,096

 

 

 

79

 

 

 

0.07

%

 

 

447,324

 

 

 

79

 

 

 

0.07

%

Time deposits

 

 

758,518

 

 

 

1,729

 

 

 

0.90

%

 

 

799,285

 

 

 

1,587

 

 

 

0.80

%

Total interest bearing deposits

 

 

1,774,426

 

 

 

2,112

 

 

 

0.47

%

 

 

1,808,817

 

 

 

1,923

 

 

 

0.43

%

Federal Home Loan Bank advances

 

 

222,800

 

 

 

850

 

 

 

1.51

%

 

 

225,579

 

 

 

772

 

 

 

1.37

%

Other borrowed funds

 

 

60,418

 

 

 

670

 

 

 

4.40

%

 

 

76,255

 

 

 

809

 

 

 

4.26

%

Total borrowings

 

 

283,218

 

 

 

1,520

 

 

 

2.13

%

 

 

301,834

 

 

 

1,581

 

 

 

2.10

%

Total interest bearing liabilities

 

$

2,057,644

 

 

$

3,632

 

 

 

0.70

%

 

$

2,110,651

 

 

$

3,504

 

 

 

0.67

%

Non-interest checking

 

 

748,523

 

 

 

 

 

 

 

 

 

 

 

745,907

 

 

 

 

 

 

 

 

 

Other liabilities

 

 

42,577

 

 

 

 

 

 

 

 

 

 

 

31,290

 

 

 

 

 

 

 

 

 

Total stockholders’ equity

 

 

458,442

 

 

 

 

 

 

 

 

 

 

 

396,817

 

 

 

 

 

 

 

 

 

TOTAL LIABILITIES AND

   STOCKHOLDERS’ EQUITY

 

$

3,307,186

 

 

 

 

 

 

 

 

 

 

$

3,284,665

 

 

 

 

 

 

 

 

 

Net interest spread(3)

 

 

 

 

 

 

 

 

 

 

3.96

%

 

 

 

 

 

 

 

 

 

 

3.82

%

Net interest income

 

 

 

 

 

$

31,412

 

 

 

 

 

 

 

 

 

 

$

29,811

 

 

 

 

 

Net interest margin(4)

 

 

 

 

 

 

 

 

 

 

4.18

%

 

 

 

 

 

 

 

 

 

 

4.02

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net loan accretion impact on margin

 

 

 

 

 

$

2,166

 

 

 

0.29

%

 

 

 

 

 

$

2,471

 

 

 

0.33

%

Net interest margin excluding loan

   accretion(6)

 

 

 

 

 

 

 

 

 

 

3.89

%

 

 

 

 

 

 

 

 

 

 

3.69

%

 

(1)

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

 

(2)

Interest income and rates exclude the effects of a tax equivalent adjustment to adjust tax exempt investment income on tax-exempt investment securities to a fully taxable basis due to immateriality.

 

(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.

 

(6)

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.

 

Net interest income for the third quarter of 2017 was $31.4 million, an increase of $1.6 million from $29.8 million for the second quarter of 2017.  

 

 


Byline Bancorp, Inc.

Page 3 of 17

The increase in net interest income was primarily due to:

 

An increase of $1.8 million in interest and fees on loans and leases, primarily due to the growth in the originated loan and lease portfolio and increased average yields; and

 

A decrease of $139,000 in interest expense on other borrowings, primarily due to the repayment of the outstanding balance of $16.2 million under the Company’s line of credit during the quarter.

Partially offset by:

 

An increase of $189,000 in interest expense on deposits, primarily due to higher rates on interest-bearing deposit accounts; and

 

An increase of $78,000 in interest expense on Federal Home Loan Bank advances, primarily due to higher rates.

Net interest margin for the third quarter of 2017 was 4.18%, an increase of 16 basis points from the second quarter of 2017. The primary driver of the increase in the net interest margin was due to the mix of earning assets, driven by the increased volume of, and related yields on, loans and leases during the quarter.  

Provision for Loan and Lease Losses

The provision for loan and lease losses was $3.9 million for the third quarter of 2017, an increase of $385,000 compared to $3.5 million for the second quarter of 2017.  This increase was primarily driven by the growth in the loan and lease portfolio.

Non-interest Income

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

 

 

Three Months Ended

 

 

Nine Months Ended

 

 

 

September 30,

 

 

June 30,

 

 

March 31,

 

 

September 30,

 

 

September 30,

 

 

September 30,

 

(dollars in thousands)

 

2017

 

 

2017

 

 

2017

 

 

2016

 

 

2017

 

 

2016

 

NON-INTEREST INCOME

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Fees and service charges on

   deposits

 

$

1,418

 

 

$

1,348

 

 

$

1,219

 

 

$

1,465

 

 

$

3,985

 

 

$

4,227

 

Servicing fees

 

 

959

 

 

 

1,076

 

 

 

919

 

 

 

 

 

 

2,954

 

 

 

 

ATM and interchange fees

 

 

1,495

 

 

 

1,499

 

 

 

1,348

 

 

 

1,470

 

 

 

4,342

 

 

 

4,392

 

Net gains on sales of securities

   available-for-sale

 

 

 

 

 

 

 

 

8

 

 

 

802

 

 

 

8

 

 

 

3,231

 

Net gains (losses) on sales of loans

 

 

7,499

 

 

 

8,445

 

 

 

8,082

 

 

 

(60

)

 

 

24,026

 

 

 

(39

)

Fees on mortgage loan sales, net

 

 

 

 

 

 

 

 

2

 

 

 

46

 

 

 

2

 

 

 

101

 

Other non-interest income

 

 

547

 

 

 

825

 

 

 

730

 

 

 

1,053

 

 

 

2,102

 

 

 

3,350

 

Total non-interest income

 

$

11,918

 

 

$

13,193

 

 

$

12,308

 

 

$

4,776

 

 

$

37,419

 

 

$

15,262

 

 

Non-interest income for the third quarter of 2017 was $11.9 million, a decrease of $1.3 million from $13.2 million for the second quarter of 2017, primarily due to:  

 

A decrease of $946,000 in net gains on sales of loans; and

 

A decrease of $117,000 in servicing fees, primarily due to loan prepayments.

 

 


Byline Bancorp, Inc.

Page 4 of 17

During the third quarter of 2017, the Company sold $71.8 million of government guaranteed loans compared to $75.1 million during the second quarter of 2017, contributing to the decline in net gains on sale of loans for the quarter.

Non-interest Expense

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

 

Three Months Ended

 

 

Nine Months Ended

 

 

 

September 30,

 

 

June 30,

 

 

March 31,

 

 

September 30,

 

 

September 30,

 

 

September 30,

 

(dollars in thousands)

 

2017

 

 

2017

 

 

2017

 

 

2016

 

 

2017

 

 

2016

 

NON-INTEREST EXPENSE

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Salaries and employee benefits

 

$

16,323

 

 

$

17,226

 

 

$

16,602

 

 

$

11,266

 

 

$

50,151

 

 

$

34,206

 

Occupancy expense, net

 

 

3,301

 

 

 

3,485

 

 

 

3,739

 

 

 

3,358

 

 

 

10,525

 

 

 

10,511

 

Equipment expense

 

 

630

 

 

 

616

 

 

 

563

 

 

 

516

 

 

 

1,809

 

 

 

1,519

 

Loan and lease related expenses

 

 

891

 

 

 

801

 

 

 

877

 

 

 

443

 

 

 

2,569

 

 

 

1,090

 

Legal, audit and other professional fees

 

 

1,608

 

 

 

1,090

 

 

 

1,671

 

 

 

1,065

 

 

 

4,369

 

 

 

3,785

 

Data processing

 

 

2,399

 

 

 

2,447

 

 

 

2,409

 

 

 

1,990

 

 

 

7,255

 

 

 

5,760

 

Net (gain) loss recognized on other real estate

   owned and other related expenses

 

 

565

 

 

 

141

 

 

 

(570

)

 

 

292

 

 

 

136

 

 

 

1,386

 

Regulatory assessments

 

 

326

 

 

 

384

 

 

 

184

 

 

 

502

 

 

 

894

 

 

 

1,930

 

Other intangible assets amortization expense

 

 

769

 

 

 

769

 

 

 

769

 

 

 

747

 

 

 

2,307

 

 

 

2,242

 

Advertising and promotions

 

 

196

 

 

 

318

 

 

 

289

 

 

 

156

 

 

 

803

 

 

 

454

 

Telecommunications

 

 

351

 

 

 

396

 

 

 

418

 

 

 

370

 

 

 

1,165

 

 

 

1,284

 

Other non-interest expense

 

 

3,706

 

 

 

1,576

 

 

 

1,900

 

 

 

1,679

 

 

 

7,182

 

 

 

5,521

 

Total non-interest expense

 

$

31,065

 

 

$

29,249

 

 

$

28,851

 

 

$

22,384

 

 

$

89,165

 

 

$

69,688

 

 

Non-interest expense for the third quarter of 2017 was $31.1 million, an increase of $1.8 million from $29.2 million for the second quarter of 2017.  

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

 

Impairment charges, included in other non-interest expense, of $951,000 during the third quarter of 2017, primarily related to the planned disposition of the former headquarters of Byline Bank;

 

An increase of $518,000 in legal, audit and other professional fees, primarily due to the increased costs associated with being a public company;

 

An increase of $424,000 in net loss recognized on other real estate owned and other related expenses, primarily due to lower gains on sales of other real estate owned properties; and

 

An increase of $376,000 in provision for unfunded commitments, included in other non-interest expense, primarily due to growth in unfunded loan and lease commitments.

Partially offset by:

 

A decrease of $903,000 in salaries and employee benefits, primarily due to decreased recruitment costs and increased deferred loan origination costs, mainly salary expense, due to increased loan and lease originations; and

 

A decrease of $184,000 in occupancy expense, net, primarily due to reductions in real estate tax expenses.

The Company’s efficiency ratio was 69.92% for the third quarter of 2017, compared with 66.23% for the second quarter of 2017 and 84.38% for the third quarter of 2016.

 

 


Byline Bancorp, Inc.

Page 5 of 17

INCOME TAXES

The Company recorded an income tax benefit of $1.4 million during the third quarter of 2017 compared to a provision of $4.1 million during the second quarter of 2017, a decrease of $5.5 million.  As part of a budget package passed by the Legislature of the State of Illinois, the corporate income tax rate increased from 5.25% to 7.00% effective July 1, 2017.  The Company recorded a state income tax benefit of $4.6 million, or $0.16 per diluted share during the quarter ended September 30, 2017, as a result of increased value to the deferred tax asset related to the Company’s Illinois net loss deduction.

STATEMENTS OF FINANCIAL CONDITION

Total assets were $3.3 billion at September 30, 2017, a decrease of $54.7 million from $3.4 billion at June 30, 2017, and stable compared to $3.3 billion at December 31, 2016.

The decrease in the current quarter was primarily due to:

 

The receipt of net proceeds due of $82.7 million in connection with the Company’s initial public offering;

 

The completion of the repurchase of all of the Company’s Series A Preferred Stock for $25.5 million; and

 

The repayment, in full, of the amount outstanding under the Company’s line of credit of $16.2 million.

Partially offset by:

 

An increase in loans and leases of $67.1 million from $2.1 billion at June 30, 2017 to $2.2 billion at September 30, 2017.

 

 


Byline Bancorp, Inc.

Page 6 of 17

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

 

 

September 30, 2017

 

 

June 30, 2017

 

 

December 31, 2016

 

(dollars in thousands)

 

Amount

 

 

% of Total

 

 

Amount

 

 

% of Total

 

 

Amount

 

 

% of Total

 

Originated loans and leases

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Commercial real estate

 

$

463,020

 

 

 

20.9

%

 

$

407,173

 

 

 

18.9

%

 

$

338,752

 

 

 

15.8

%

Residential real estate

 

 

398,062

 

 

 

18.0

%

 

 

384,545

 

 

 

17.9

%

 

 

394,168

 

 

 

18.3

%

Construction, land development, and

   other land

 

 

85,666

 

 

 

3.9

%

 

 

83,618

 

 

 

3.9

%

 

 

119,357

 

 

 

5.6

%

Commercial and industrial

 

 

390,331

 

 

 

17.6

%

 

 

348,341

 

 

 

16.2

%

 

 

309,097

 

 

 

14.4

%

Installment and other

 

 

2,726

 

 

 

0.1

%

 

 

2,595

 

 

 

0.1

%

 

 

2,021

 

 

 

0.1

%

Leasing financing receivables

 

 

134,193

 

 

 

6.0

%

 

 

129,005

 

 

 

6.0

%

 

 

118,493

 

 

 

5.5

%

Total originated loans and leases

 

$

1,473,998

 

 

 

66.5

%

 

$

1,355,277

 

 

 

63.0

%

 

$

1,281,888

 

 

 

59.7

%

Acquired impaired loans

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Commercial real estate

 

$

173,106

 

 

 

7.8

%

 

$

188,161

 

 

 

8.8

%

 

$

207,303

 

 

 

9.7

%

Residential real estate

 

 

152,149

 

 

 

6.9

%

 

 

162,349

 

 

 

7.6

%

 

 

175,717

 

 

 

8.2

%

Construction, land development, and

   other land

 

 

5,424

 

 

 

0.2

%

 

 

5,830

 

 

 

0.3

%

 

 

6,979

 

 

 

0.3

%

Commercial and industrial

 

 

11,433

 

 

 

0.5

%

 

 

12,400

 

 

 

0.5

%

 

 

13,464

 

 

 

0.6

%

Installment and other

 

 

488

 

 

 

0.0

%

 

 

555

 

 

 

0.0

%

 

 

574

 

 

 

0.0

%

Total acquired impaired loans

 

$

342,600

 

 

 

15.4

%

 

$

369,295

 

 

 

17.2

%

 

$

404,037

 

 

 

18.8

%

Acquired non-impaired loans and leases

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Commercial real estate

 

$

225,759

 

 

 

10.2

%

 

$

233,855

 

 

 

10.9

%

 

$

250,289

 

 

 

11.6

%

Residential real estate

 

 

32,451

 

 

 

1.5

%

 

 

37,822

 

 

 

1.8

%

 

 

40,853

 

 

 

1.9

%

Construction, land development, and

   other land

 

 

3,214

 

 

 

0.2

%

 

 

3,187

 

 

 

0.1

%

 

 

14,430

 

 

 

0.7

%

Commercial and industrial

 

 

100,291

 

 

 

4.5

%

 

 

107,433

 

 

 

5.0

%

 

 

115,677

 

 

 

5.4

%

Installment and other

 

 

38

 

 

 

0.0

%

 

 

365

 

 

 

0.0

%

 

 

364

 

 

 

0.0

%

Leasing financing receivables

 

 

38,148

 

 

 

1.7

%

 

 

42,156

 

 

 

2.0

%

 

 

40,473

 

 

 

1.9

%

Total acquired non-impaired loans

   and leases

 

$

399,901

 

 

 

18.1

%

 

$

424,818

 

 

 

19.8

%

 

$

462,086

 

 

 

21.5

%

Total loans and leases

 

$

2,216,499

 

 

 

100.0

%

 

$

2,149,390

 

 

 

100.0

%

 

$

2,148,011

 

 

 

100.0

%

Allowance for loan and lease losses

 

 

(15,980

)

 

 

 

 

 

 

(13,969

)

 

 

 

 

 

 

(10,923

)

 

 

 

 

Total loans and leases, net of allowance for

   loan and lease losses

 

$

2,200,519

 

 

 

 

 

 

$

2,135,421

 

 

 

 

 

 

$

2,137,088

 

 

 

 

 

 

ASSET QUALITY

Non-Performing Assets

The following table sets forth the amounts of non-performing loans and leases, non-performing assets, and other real estate owned at the dates indicated:

(dollars in thousands)

 

September 30, 2017

 

 

June 30, 2017

 

 

March 31, 2017

 

 

December 31, 2016

 

 

September 30, 2016

 

Non-accrual loans and leases

 

$

15,121

 

 

$

15,291

 

 

$

7,843

 

 

$

6,784

 

 

$

7,105

 

Past due loans and leases 90 days or more

   and still accruing interest

 

 

 

 

 

 

 

 

 

 

 

 

 

 

77

 

Accruing troubled debt restructured loans

 

 

1,631

 

 

 

981

 

 

 

1,004

 

 

 

602

 

 

 

686

 

Total non-performing loans and leases

 

 

16,752

 

 

 

16,272

 

 

 

8,847

 

 

 

7,386

 

 

 

7,868

 

Other real estate owned

 

 

13,859

 

 

 

12,684

 

 

 

13,173

 

 

 

16,570

 

 

 

15,274

 

Total non-performing assets

 

$

30,611

 

 

$

28,956

 

 

$

22,020

 

 

$

23,956

 

 

$

23,142

 

Total non-performing loans and leases as a

   percentage of total loans and leases

 

 

0.76

%

 

 

0.76

%

 

 

0.41

%

 

 

0.34

%

 

 

0.46

%

Total non-performing assets as a percentage

   of total assets

 

 

0.93

%

 

 

0.86

%

 

 

0.67

%

 

 

0.73

%

 

 

0.84

%

Allowance for loan and lease losses as a

   percentage of non-performing loans and

   leases

 

 

95.39

%

 

 

85.85

%

 

 

133.57

%

 

 

147.88

%

 

 

82.63

%

 

 

 


Byline Bancorp, Inc.

Page 7 of 17

Variances in credit quality metrics:

 

Non-performing assets were $30.6 million at September 30, 2017, an increase of $1.7 million from $29.0 million at June 30, 2017;

 

Non-performing loans and leases were $16.8 million at September 30, 2017, an increase of $480,000 from $16.3 million at June 30, 2017; and

 

Other real estate owned was $13.9 million at September 30, 2017, an increase of $1.2 million from $12.7 million at June 30, 2017.

Allowance for Loan and Lease Losses

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

 

 

Three Months Ended

 

 

Nine Months Ended

 

 

 

September 30,

 

 

June 30,

 

 

March 31,

 

 

September 30,

 

 

September 30,

 

 

September 30,

 

(dollars in thousands)

 

2017

 

 

2017

 

 

2017

 

 

2016

 

 

2017

 

 

2016

 

Allowance for loan and lease losses,

   beginning of period

 

$

13,969

 

 

$

11,817

 

 

$

10,923

 

 

$

6,490

 

 

$

10,923

 

 

$

7,632

 

Provision for loan and lease losses

 

 

3,900

 

 

 

3,515

 

 

 

1,891

 

 

 

1,683

 

 

 

9,306

 

 

 

5,348

 

Net (charge-offs) recoveries of loans

 

 

(1,889

)

 

 

(1,363

)

 

 

(997

)

 

 

(1,672

)

 

 

(4,249

)

 

 

(6,479

)

Allowance for loan and lease losses,

   end of period

 

$

15,980

 

 

$

13,969

 

 

$

11,817

 

 

$

6,501

 

 

$

15,980

 

 

$

6,501

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Allowance for loan and lease losses to

   period end total loans held for

   investment

 

 

0.72

%

 

 

0.65

%

 

 

0.55

%

 

 

0.38

%

 

 

0.72

%

 

 

0.65

%

Net charge-offs (annualized) to average

   loans outstanding during the period

 

 

0.34

%

 

 

0.26

%

 

 

0.19

%

 

 

0.40

%

 

 

0.26

%

 

 

0.56

%

Provision for loan and lease losses to

   net charge-offs during the period

 

 

2.06

x

 

 

2.58

x

 

 

1.90

x

 

 

1.01

x

 

 

2.19

x

 

 

0.83

x

 

The allowance for loan and lease losses as a percentage of total loans and leases held for investment increased from 0.65% at June 30, 2017 to 0.72% at September 30, 2017. This increase was primarily driven by the growth in the loan and lease portfolio.

Net Charge-Offs

Net charge-offs during the third quarter of 2017 were $1.9 million, or 0.34% of average loans and leases, on an annualized basis, an increase of $526,000 compared to $1.4 million, or 0.26%, during the second quarter of 2017, primarily due to increased Small Business Administration loan charge-off activity.

 

 


Byline Bancorp, Inc.

Page 8 of 17

Deposits and Other Liabilities

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

 

 

September 30,

 

 

June 30,

 

 

March 31,

 

 

December 31,

 

 

September 30,

 

(dollars in thousands)

 

2017

 

 

2017

 

 

2017

 

 

2016

 

 

2016

 

Non-interest bearing demand deposits

 

$

753,662

 

 

$

781,636

 

 

$

732,267

 

 

$

724,457

 

 

$

673,823

 

Interest bearing checking accounts

 

 

187,232

 

 

 

182,351

 

 

 

192,317

 

 

 

173,929

 

 

 

190,732

 

Money market demand accounts

 

 

418,006

 

 

 

353,304

 

 

 

393,372

 

 

 

369,074

 

 

 

423,929

 

Other savings

 

 

435,536

 

 

 

445,220

 

 

 

446,847

 

 

 

446,418

 

 

 

438,015

 

Time deposits (below $100,000)

 

 

377,929

 

 

 

395,385

 

 

 

407,471

 

 

 

392,854

 

 

 

292,065

 

Time deposits ($100,000 and above)

 

 

348,564

 

 

 

382,702

 

 

 

403,565

 

 

 

383,662

 

 

 

224,279

 

Total deposits

 

$

2,520,929

 

 

$

2,540,598

 

 

$

2,575,839

 

 

$

2,490,394

 

 

$

2,242,843

 

 

Total deposits were $2.5 billion at September 30, 2017, a decrease of $19.7 million compared to the previous quarter but an increase of $30.5 million compared to December 31, 2016.

The decrease in the current quarter was primarily due to:

 

A decrease in total time deposits of $51.6 million, from $778.1 million at June 30, 2017 to $726.5 million at September 30, 2017, primarily due to run-off of higher priced time deposits;

 

A decrease in non-interest bearing demand deposits of $28.0 million, from $781.6 million at June 30, 2017 to $753.7 million at September 30, 2017, primarily due to the settlement of a new deposit relationship related to a new loan funding that occurred at the end of the prior quarter, as previously disclosed; and

 

A decrease in other savings deposits of $9.7 million, from $445.2 million at June 30, 2017 to $435.5 million at September 30, 2017, primarily related to seasonal fluctuations.

Partially offset by:

 

An increase in money market demand accounts of $64.7 million, from $353.3 million at June 30, 2017 to $418.0 million at September 30, 2017, primarily due to seasonal fluctuations from a deposit relationship; and

 

An increase in interest bearing checking deposits of $4.9 million, from $182.4 million at June 30, 2017 to $187.2 million at September 30, 2017.

Total borrowings and other liabilities were $325.0 million at September 30, 2017, a decrease of $46.8 million from $371.8 million at June 30, 2017, and a decrease of $97.8 million from $422.8 million at December 31, 2016.

The decrease was primarily due to:

 

The settlement of the repurchase of all of the Company’s Series A Preferred Stock for $25.5 million; and

 

The repayment, in full, of the amount outstanding under the Company’s line of credit of $16.2 million.

 

 


Byline Bancorp, Inc.

Page 9 of 17

Partially offset by:

 

An increase in Federal Home Loan Bank advances of $14.9 million, primarily due to the Bank’s ongoing funding needs as a result of increased loan demand.

Stockholders’ Equity

Total stockholders’ equity was $459.5 million at September 30, 2017, an increase of $11.8 million from $447.7 million at June 30, 2017, and an increase of $76.9 million from $382.7 million at December 31, 2016.  

The following table presents the actual regulatory capital dollar amounts and ratios of the Company and Byline Bank as of September 30, 2017:

 

 

Actual

 

 

Minimum Capital

Required

 

 

Required for the Bank

to be Considered

Well Capitalized

 

(dollars in thousands)

 

Amount

 

 

Ratio

 

 

Amount

 

 

Ratio

 

 

Amount

 

 

Ratio

 

Total capital to risk weighted assets:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Company

 

$

399,542

 

 

 

16.08

%

 

$

198,807

 

 

 

8.00

%

 

N/A

 

 

N/A

 

Bank

 

 

356,132

 

 

 

14.30

%

 

 

199,306

 

 

 

8.00

%

 

 

249,133

 

 

 

10.00

%

Tier 1 capital to risk weighted assets:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Company

 

$

381,934

 

 

 

15.37

%

 

$

149,105

 

 

 

6.00

%

 

N/A

 

 

N/A

 

Bank

 

 

338,524

 

 

 

13.59

%

 

 

149,480

 

 

 

6.00

%

 

 

199,306

 

 

 

8.00

%

Common Equity Tier 1 (CET1) to

   risk weighted assets:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Company

 

$

346,052

 

 

 

13.93

%

 

$

111,829

 

 

 

4.50

%

 

N/A

 

 

N/A

 

Bank

 

 

338,524

 

 

 

13.59

%

 

 

112,110

 

 

 

4.50

%

 

 

161,937

 

 

 

6.50

%

Tier 1 capital to average assets:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Company

 

$

381,934

 

 

 

11.95

%

 

$

127,796

 

 

 

4.00

%

 

N/A

 

 

N/A

 

Bank

 

 

338,524

 

 

 

10.57

%

 

 

128,135

 

 

 

4.00

%

 

 

160,169

 

 

 

5.00

%

 

Conference Call, Webcast and Slide Presentation

The Company will host a conference call and webcast at 9:00 a.m. Central Time (10:00 a.m. Eastern Time) on Friday, October 27, 2017 to discuss its quarterly financial results.  Analysts and investors may participate in the question-and-answer session. The call can be accessed via telephone at (888) 317-6016.  A recorded replay can be accessed through November 10, 2017 by dialing (877) 344-7529; passcode: 10113038.

A slide presentation relating to the third quarter 2017 results will be accessible prior to the scheduled conference call.  The slide presentation and webcast of the conference call can be accessed on the Events and Presentations page of the Company’s investor relations website at www.bylinebancorp.com.

About Byline Bancorp, Inc.

Headquartered in Chicago, Byline Bancorp, Inc. is the parent company for Byline Bank, a full service commercial bank serving small- and medium-sized businesses, financial sponsors, and consumers. Byline Bank has approximately $3.3 billion in assets and operates more than 50 full service branch locations throughout the Chicago and Milwaukee metropolitan areas. Byline Bank offers a broad range of commercial and retail banking products and services including small ticket equipment leasing solutions and is one of the top 10 Small Business Administration lenders in the United States.  

 

 


Byline Bancorp, Inc.

Page 10 of 17

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 non-interest income to total revenues, pre-tax pre-provision return on average assets, tangible book value per share and tangible common equity to tangible assets. Management believes that these non-GAAP financial measures provide useful information to management and investors that is supplementary to the Company’s financial condition, results of operations and cash flows computed in accordance with GAAP; however, management acknowledges that our non-GAAP financial measures have a number of limitations. As such, these disclosures should not be viewed as a substitute for results determined in accordance with GAAP financial measures that we and other companies use. Management also uses these measures for peer comparison. See “Reconciliation of Non-GAAP Financial Measures” in the financial schedules included in this press release for a reconciliation of the non- GAAP financial measures to the comparable GAAP financial measures.

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

Pre-tax pre-provision return on average assets is pre-tax income plus the provision for loan and lease losses, divided by average assets. Management believes this metric is important due to the tax benefit resulting from the reversal of the net deferred tax asset valuation allowance and demonstrates profitability excluding the tax benefit and excludes the provision for loan and lease losses.  

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

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

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 reflect various assumptions and involve elements of subjective judgement and analysis, which may or may not prove to be correct, and which are subject to uncertainties and contingencies outside the control of Byline and its respective affiliates, directors, employees and other representatives, which could cause actual results to differ materially from those presented in this communication. No representations, warranties or guarantees are or will

 

 


Byline Bancorp, Inc.

Page 11 of 17

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. Forward-looking statements speak only as of the date they are made, and we assume no obligation to update any of these statements in light of new information, future events or otherwise unless required under the federal securities laws.

 

Contacts:

 

Investors:

Media:

Allyson Pooley/Tony Rossi

Erin O’Neill

Financial Profiles, Inc.

Director of Marketing

IRBY@bylinebank.com

Byline Bank

 

773-475-2901

 

eoneill@bylinebank.com

 

 

 

 


Byline Bancorp, Inc.

Page 12 of 17

BYLINE BANCORP, INC. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION (unaudited)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(dollars in thousands)

 

September 30, 2017

 

 

June 30, 2017

 

 

March 31, 2017

 

 

December 31, 2016

 

 

September 30, 2016

 

ASSETS

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cash and due from banks

 

$

16,193

 

 

$

17,740

 

 

$

15,541

 

 

$

17,735

 

 

$

15,972

 

Interest bearing deposits with other banks

 

 

46,043

 

 

 

62,081

 

 

 

67,726

 

 

 

28,798

 

 

 

34,988

 

Cash and cash equivalents

 

 

62,236

 

 

 

79,821

 

 

 

83,267

 

 

 

46,533

 

 

 

50,960

 

Securities available-for-sale, at fair value

 

 

584,684

 

 

 

591,933

 

 

 

590,507

 

 

 

608,560

 

 

 

628,619

 

Securities held-to-maturity, at amortized cost

 

 

121,453

 

 

 

127,397

 

 

 

132,897

 

 

 

138,846

 

 

 

147,441

 

Restricted stock, at cost

 

 

10,628

 

 

 

11,978

 

 

 

9,503

 

 

 

14,993

 

 

 

11,250

 

Loans held for sale

 

 

2,087

 

 

 

6,835

 

 

 

23,492

 

 

 

23,976

 

 

 

1,278

 

Loans and leases:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Loans and leases

 

 

2,216,499

 

 

 

2,149,390

 

 

 

2,143,534

 

 

 

2,148,011

 

 

 

1,717,509

 

Allowance for loan and lease losses

 

 

(15,980

)

 

 

(13,969

)

 

 

(11,817

)

 

 

(10,923

)

 

 

(6,501

)

Net loans and leases

 

 

2,200,519

 

 

 

2,135,421

 

 

 

2,131,717

 

 

 

2,137,088

 

 

 

1,711,008

 

Servicing assets, at fair value

 

 

21,669

 

 

 

21,424

 

 

 

21,223

 

 

 

21,091

 

 

 

 

Accrued interest receivable

 

 

7,183

 

 

 

6,961

 

 

 

7,498

 

 

 

6,866

 

 

 

5,937

 

Premises and equipment, net

 

 

96,334

 

 

 

98,891

 

 

 

99,563

 

 

 

102,074

 

 

 

105,301

 

Assets held for sale

 

 

12,938

 

 

 

13,666

 

 

 

13,666

 

 

 

14,748

 

 

 

11,178

 

Other real estate owned, net

 

 

13,859

 

 

 

12,684

 

 

 

13,173

 

 

 

16,570

 

 

 

15,274

 

Goodwill

 

 

51,975

 

 

 

51,975

 

 

 

51,975

 

 

 

51,975

 

 

 

25,688

 

Other intangible assets, net

 

 

17,522

 

 

 

18,290

 

 

 

19,058

 

 

 

19,826

 

 

 

20,100

 

Bank-owned life insurance

 

 

5,680

 

 

 

5,643

 

 

 

6,676

 

 

 

6,557

 

 

 

4,166

 

Deferred tax assets, net

 

 

60,350

 

 

 

58,784

 

 

 

62,925

 

 

 

67,760

 

 

 

 

Due from broker

 

 

 

 

 

82,699

 

 

 

 

 

 

 

 

 

 

Due from counterparty

 

 

21,084

 

 

 

19,257

 

 

 

 

 

 

 

 

 

 

Other assets

 

 

15,241

 

 

 

16,463

 

 

 

17,573

 

 

 

18,367

 

 

 

9,729

 

Total assets

 

$

3,305,442

 

 

$

3,360,122

 

 

$

3,284,713

 

 

$

3,295,830

 

 

$

2,747,929

 

LIABILITIES AND STOCKHOLDERS’ EQUITY

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

LIABILITIES

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Non-interest bearing demand deposits

 

$

753,662

 

 

$

781,636

 

 

$

732,267

 

 

$

724,457

 

 

$

673,823

 

Interest bearing deposits:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

NOW, savings accounts, and money market accounts

 

 

1,040,774

 

 

 

980,875

 

 

 

1,032,536

 

 

 

989,421

 

 

 

1,052,676

 

Time deposits

 

 

726,493

 

 

 

778,087

 

 

 

811,036

 

 

 

776,516

 

 

 

516,344

 

Total deposits

 

 

2,520,929

 

 

 

2,540,598

 

 

 

2,575,839

 

 

 

2,490,394

 

 

 

2,242,843

 

Accrued interest payable

 

 

1,184

 

 

 

1,562

 

 

 

1,893

 

 

 

2,427

 

 

 

484

 

Line of credit

 

 

 

 

 

16,150

 

 

 

18,150

 

 

 

20,650

 

 

 

 

Federal Home Loan Bank advances

 

 

234,559

 

 

 

219,611

 

 

 

209,663

 

 

 

313,715

 

 

 

183,000

 

Securities sold under agreements to repurchase

 

 

30,807

 

 

 

32,429

 

 

 

31,940

 

 

 

17,249

 

 

 

14,094

 

Junior subordinated debentures issued to capital trusts, net

 

 

27,482

 

 

 

27,309

 

 

 

27,130

 

 

 

26,926

 

 

 

25,371

 

Accrued expenses and other liabilities

 

 

30,948

 

 

 

74,732

 

 

 

30,415

 

 

 

41,811

 

 

 

31,033

 

Total liabilities

 

 

2,845,909

 

 

 

2,912,391

 

 

 

2,895,030

 

 

 

2,913,172

 

 

 

2,496,825

 

STOCKHOLDERS’ EQUITY

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Preferred stock

 

 

10,438

 

 

 

10,438

 

 

 

25,441

 

 

 

25,441

 

 

 

15,003

 

Common stock

 

 

292

 

 

 

292

 

 

 

 

 

 

 

 

 

 

Additional paid-in capital

 

 

391,040

 

 

 

390,660

 

 

 

313,838

 

 

 

313,552

 

 

 

245,345

 

Retained earnings (accumulated deficit)

 

 

62,311

 

 

 

52,753

 

 

 

57,304

 

 

 

50,933

 

 

 

(12,982

)

Accumulated other comprehensive income (loss), net of tax

 

 

(4,548

)

 

 

(6,412

)

 

 

(6,900

)

 

 

(7,268

)

 

 

3,738

 

Total stockholders’ equity

 

 

459,533

 

 

 

447,731

 

 

 

389,683

 

 

 

382,658

 

 

 

251,104

 

Total liabilities and stockholders’ equity

 

$

3,305,442

 

 

$

3,360,122

 

 

$

3,284,713

 

 

$

3,295,830

 

 

$

2,747,929

 

 


 

 


Byline Bancorp, Inc.

Page 13 of 17

BYLINE BANCORP, INC. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF OPERATIONS (unaudited)

 

 

Three Months Ended

 

 

Nine Months Ended

 

 

 

September 30,

 

 

June 30,

 

 

March 31,

 

 

September 30,

 

 

September 30,

 

 

September 30,

 

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

 

2017

 

 

2017

 

 

2017

 

 

2016

 

 

2017

 

 

2016

 

INTEREST AND DIVIDEND INCOME

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest and fees on loans and leases

 

$

30,933

 

 

$

29,181

 

 

$

28,396

 

 

$

19,081

 

 

$

88,510

 

 

$

56,334

 

Interest on taxable securities

 

 

3,720

 

 

 

3,703

 

 

 

3,790

 

 

 

3,312

 

 

 

11,213

 

 

 

10,492

 

Interest on tax-exempt securities

 

 

174

 

 

 

151

 

 

 

133

 

 

 

152

 

 

 

458

 

 

 

509

 

Other interest and dividend income

 

 

217

 

 

 

280

 

 

 

169

 

 

 

112

 

 

 

666

 

 

 

254

 

Total interest and dividend income

 

 

35,044

 

 

 

33,315

 

 

 

32,488

 

 

 

22,657

 

 

 

100,847

 

 

 

67,589

 

INTEREST EXPENSE

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Deposits

 

 

2,112

 

 

 

1,923

 

 

 

1,483

 

 

 

1,063

 

 

 

5,518

 

 

 

3,281

 

Federal Home Loan Bank advances

 

 

850

 

 

 

772

 

 

 

660

 

 

 

200

 

 

 

2,282

 

 

 

371

 

Subordinated debentures and other borrowings

 

 

670

 

 

 

809

 

 

 

807

 

 

 

529

 

 

 

2,286

 

 

 

1,571

 

Total interest expense

 

 

3,632

 

 

 

3,504

 

 

 

2,950

 

 

 

1,792

 

 

 

10,086

 

 

 

5,223

 

Net interest income

 

 

31,412

 

 

 

29,811

 

 

 

29,538

 

 

 

20,865

 

 

 

90,761

 

 

 

62,366

 

PROVISION FOR LOAN AND LEASE LOSSES

 

 

3,900

 

 

 

3,515

 

 

 

1,891

 

 

 

1,683

 

 

 

9,306

 

 

 

5,348

 

Net interest income after provision for

   loan and lease losses

 

 

27,512

 

 

 

26,296

 

 

 

27,647

 

 

 

19,182

 

 

 

81,455

 

 

 

57,018

 

NON-INTEREST INCOME

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Fees and service charges on deposits

 

 

1,418

 

 

 

1,348

 

 

 

1,219

 

 

 

1,465

 

 

 

3,985

 

 

 

4,227

 

Servicing fees

 

 

959

 

 

 

1,076

 

 

 

919

 

 

 

 

 

 

2,954

 

 

 

 

ATM and interchange fees

 

 

1,495

 

 

 

1,499

 

 

 

1,348

 

 

 

1,470

 

 

 

4,342

 

 

 

4,392

 

Net gains on sales of securities available-for-

   sale

 

 

 

 

 

 

 

 

8

 

 

 

802

 

 

 

8

 

 

 

3,231

 

Net gains (losses) on sales of loans

 

 

7,499

 

 

 

8,445

 

 

 

8,082

 

 

 

(60

)

 

 

24,026

 

 

 

(39

)

Fees on mortgage loan sales, net

 

 

 

 

 

 

 

 

2

 

 

 

46

 

 

 

2

 

 

 

101

 

Other non-interest income

 

 

547

 

 

 

825

 

 

 

730

 

 

 

1,053

 

 

 

2,102

 

 

 

3,350

 

Total non-interest income

 

 

11,918

 

 

 

13,193

 

 

 

12,308

 

 

 

4,776

 

 

 

37,419

 

 

 

15,262

 

NON-INTEREST EXPENSE

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Salaries and employee benefits

 

 

16,323

 

 

 

17,226

 

 

 

16,602

 

 

 

11,266

 

 

 

50,151

 

 

 

34,206

 

Occupancy expense, net

 

 

3,301

 

 

 

3,485

 

 

 

3,739

 

 

 

3,358

 

 

 

10,525

 

 

 

10,511

 

Equipment expense

 

 

630

 

 

 

616

 

 

 

563

 

 

 

516

 

 

 

1,809

 

 

 

1,519

 

Loan and lease related expenses

 

 

891

 

 

 

801

 

 

 

877

 

 

 

443

 

 

 

2,569

 

 

 

1,090

 

Legal, audit and other professional fees

 

 

1,608

 

 

 

1,090

 

 

 

1,671

 

 

 

1,065

 

 

 

4,369

 

 

 

3,785

 

Data processing

 

 

2,399

 

 

 

2,447

 

 

 

2,409

 

 

 

1,990

 

 

 

7,255

 

 

 

5,760

 

Net (gain) loss recognized on other real estate

   owned and other related expenses

 

 

565

 

 

 

141

 

 

 

(570

)

 

 

292

 

 

 

136

 

 

 

1,386

 

Regulatory assessments

 

 

326

 

 

 

384

 

 

 

184

 

 

 

502

 

 

 

894

 

 

 

1,930

 

Other intangible assets amortization expense

 

 

769

 

 

 

769

 

 

 

769

 

 

 

747

 

 

 

2,307

 

 

 

2,242

 

Advertising and promotions

 

 

196

 

 

 

318

 

 

 

289

 

 

 

156

 

 

 

803

 

 

 

454

 

Telecommunications

 

 

351

 

 

 

396

 

 

 

418

 

 

 

370

 

 

 

1,165

 

 

 

1,284

 

Other non-interest expense

 

 

3,706

 

 

 

1,576

 

 

 

1,900

 

 

 

1,679

 

 

 

7,182

 

 

 

5,521

 

Total non-interest expense

 

 

31,065

 

 

 

29,249

 

 

 

28,851

 

 

 

22,384

 

 

 

89,165

 

 

 

69,688

 

INCOME BEFORE PROVISION FOR INCOME

   TAXES

 

 

8,365

 

 

 

10,240

 

 

 

11,104

 

 

 

1,574

 

 

 

29,709

 

 

 

2,592

 

PROVISION (BENEFIT) FOR INCOME TAXES

 

 

(1,390

)

 

 

4,094

 

 

 

4,544

 

 

 

9

 

 

 

7,248

 

 

 

(222

)

NET INCOME

 

 

9,755

 

 

 

6,146

 

 

 

6,560

 

 

 

1,565

 

 

 

22,461

 

 

 

2,814

 

Dividends on preferred shares

 

 

195

 

 

 

10,697

 

 

 

189

 

 

 

 

 

 

11,081

 

 

 

 

INCOME AVAILABLE (LOSS

   ATTRIBUTABLE) TO COMMON

   STOCKHOLDERS

 

$

9,560

 

 

$

(4,551

)

 

$

6,371

 

 

$

1,565

 

 

$

11,380

 

 

$

2,814

 

EARNINGS (LOSS) PER COMMON SHARE

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic

 

$

0.33

 

 

$

(0.18

)

 

$

0.26

 

 

$

0.08

 

 

$

0.43

 

 

$

0.15

 

Diluted

 

$

0.32

 

 

$

(0.18

)

 

$

0.25

 

 

$

0.08

 

 

$

0.43

 

 

$

0.15

 

Weighted average common shares

   outstanding for basic earnings (loss) per

   common share

 

 

29,246,900

 

 

 

24,667,587

 

 

 

24,616,706

 

 

 

19,497,811

 

 

 

26,194,025

 

 

 

18,838,354

 

Diluted weighted average common shares

   outstanding for diluted earnings (loss) per

   common share

 

 

29,752,331

 

 

 

24,667,587

 

 

 

25,078,427

 

 

 

19,763,434

 

 

 

26,697,841

 

 

 

19,103,977

 

 

 

 


Byline Bancorp, Inc.

Page 14 of 17

BYLINE BANCORP, INC. AND SUBSIDIARIES

SELECTED FINANCIAL DATA (unaudited)

 

 

As of or For the Three Months Ended

 

 

As of or For the Nine Months Ended

 

 

 

September 30,

 

 

June 30,

 

 

March 31,

 

 

September 30,

 

 

September 30,

 

 

September 30,

 

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

 

2017

 

 

2017

 

 

2017

 

 

2016

 

 

2017

 

 

2016

 

Summary of Operations

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net interest income

 

$

31,412

 

 

$

29,811

 

 

$

29,538

 

 

$

20,865

 

 

$

90,761

 

 

$

62,366

 

Provision for loan and lease losses

 

 

3,900

 

 

 

3,515

 

 

 

1,891

 

 

 

1,683

 

 

 

9,306

 

 

 

5,348

 

Non-interest income

 

 

11,918

 

 

 

13,193

 

 

 

12,308

 

 

 

4,776

 

 

 

37,419

 

 

 

15,262

 

Non-interest expense

 

 

31,065

 

 

 

29,249

 

 

 

28,851

 

 

 

22,384

 

 

 

89,165

 

 

 

69,688

 

Income before provision for income taxes

 

 

8,365

 

 

 

10,240

 

 

 

11,104

 

 

 

1,574

 

 

 

29,709

 

 

 

2,592

 

Provision (benefit) for income taxes

 

 

(1,390

)

 

 

4,094

 

 

 

4,544

 

 

 

9

 

 

 

7,248

 

 

 

(222

)

Net income

 

 

9,755

 

 

 

6,146

 

 

 

6,560

 

 

 

1,565

 

 

 

22,461

 

 

 

2,814

 

Dividends on preferred shares

 

 

195

 

 

 

10,697

 

 

 

189

 

 

 

 

 

 

11,081

 

 

 

 

Net income (loss) available (attributable) to

   common stockholders

 

$

9,560

 

 

$

(4,551

)

 

$

6,371

 

 

$

1,565

 

 

$

11,380

 

 

$

2,814

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Earnings per Common Share

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic earnings (loss) per common share

 

$

0.33

 

 

$

(0.18

)

 

$

0.26

 

 

$

0.08

 

 

$

0.43

 

 

$

0.15

 

Diluted earnings (loss) per common share

 

$

0.32

 

 

$

(0.18

)

 

$

0.25

 

 

$

0.08

 

 

$

0.43

 

 

$

0.15

 

Weighted average common shares outstanding

   (basic)

 

 

29,246,900

 

 

 

24,667,587

 

 

 

24,616,706

 

 

 

19,497,811

 

 

 

26,194,025

 

 

 

18,838,354

 

Weighted average common shares outstanding

   (diluted)

 

 

29,752,331

 

 

 

24,667,587

 

 

 

25,078,427

 

 

 

19,763,434

 

 

 

26,697,841

 

 

 

19,103,977

 

Common shares outstanding

 

 

29,305,400

 

 

 

29,246,900

 

 

 

24,616,706

 

 

 

20,410,850

 

 

 

29,305,400

 

 

 

20,410,850

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Key Ratios (annualized where applicable)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net interest margin

 

 

4.18

%

 

 

4.02

%

 

 

4.00

%

 

 

3.37

%

 

 

4.07

%

 

 

3.46

%

Cost of deposits

 

 

0.33

%

 

 

0.30

%

 

 

0.24

%

 

 

0.19

%

 

 

0.29

%

 

 

0.20

%

Efficiency ratio(1)

 

 

69.92

%

 

 

66.23

%

 

 

67.11

%

 

 

84.38

%

 

 

67.76

%

 

 

86.88

%

Non-interest expense to average assets

 

 

3.73

%

 

 

3.57

%

 

 

3.53

%

 

 

3.33

%

 

 

3.61

%

 

 

3.55

%

Return on average stockholders' equity

 

 

8.44

%

 

 

6.21

%

 

 

6.83

%

 

 

2.63

%

 

 

7.23

%

 

 

1.70

%

Return on average assets

 

 

1.17

%

 

 

0.75

%

 

 

0.80

%

 

 

0.23

%

 

 

0.91

%

 

 

0.14

%

Non-interest income to total revenues(2)

 

 

27.51

%

 

 

30.68

%

 

 

29.41

%

 

 

18.62

%

 

 

29.19

%

 

 

19.66

%

Pre-tax pre-provision return on average assets(2)

 

 

1.47

%

 

 

1.68

%

 

 

1.59

%

 

 

0.48

%

 

 

1.58

%

 

 

0.40

%

Non-interest bearing deposits to total deposits

 

 

29.90

%

 

 

30.77

%

 

 

28.43

%

 

 

30.04

%

 

 

29.90

%

 

 

30.04

%

Deposits per branch

 

$

44,227

 

 

$

44,572

 

 

$

45,190

 

 

$

33,475

 

 

$

44,227

 

 

$

33,475

 

Loans and leases held for sale and loans and lease

   held for investment to total deposits

 

 

88.01

%

 

 

84.87

%

 

 

84.13

%

 

 

76.63

%

 

 

88.01

%

 

 

76.63

%

Deposits to total liabilities

 

 

88.58

%

 

 

87.23

%

 

 

88.97

%

 

 

89.83

%

 

 

88.58

%

 

 

89.83

%

Tangible book value per common share(2)

 

$

12.95

 

 

$

12.55

 

 

$

11.91

 

 

$

9.32

 

 

$

12.95

 

 

$

9.32

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Asset Quality Ratios

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Non-performing loans and leases to total loan and

   leases held for investment, net before ALLL

 

 

0.76

%

 

 

0.76

%

 

 

0.41

%

 

 

0.46

%

 

 

0.76

%

 

 

0.46

%

ALLL to total loans and leases held for investment,

   net before ALLL

 

 

0.72

%

 

 

0.65

%

 

 

0.55

%

 

 

0.38

%

 

 

0.72

%

 

 

0.38

%

Net charge-offs to average total loans and leases

   held for investment, net before ALLL

 

 

0.34

%

 

 

0.26

%

 

 

0.19

%

 

 

0.40

%

 

 

0.26

%

 

 

0.56

%

Acquisition accounting adjustments(3)

 

$

34,249

 

 

$

37,713

 

 

$

41,024

 

 

$

15,864

 

 

$

34,249

 

 

$

15,864

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Capital Ratios

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Common equity to assets

 

 

13.59

%

 

 

13.01

%

 

 

11.09

%

 

 

8.59

%

 

 

13.59

%

 

 

8.59

%

Tangible common equity to tangible assets(2)

 

 

11.73

%

 

 

11.16

%

 

 

9.12

%

 

 

7.04

%

 

 

11.73

%

 

 

7.04

%

Leverage ratio

 

 

11.95

%

 

 

11.73

%

 

 

9.59

%

 

 

9.29

%

 

 

11.95

%

 

 

9.29

%

Common equity tier 1 capital ratio

 

 

13.93

%

 

 

13.61

%

 

 

10.85

%

 

 

10.22

%

 

 

13.93

%

 

 

10.22

%

Tier 1 capital ratio

 

 

15.37

%

 

 

15.06

%

 

 

12.94

%

 

 

12.84

%

 

 

15.37

%

 

 

12.84

%

Total capital ratio

 

 

16.08

%

 

 

15.68

%

 

 

13.49

%

 

 

13.22

%

 

 

16.08

%

 

 

13.22

%

 

(1)

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

 

(2)

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.

 

(3)

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

 

 


Byline Bancorp, Inc.

Page 15 of 17

 

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 September 30,

 

 

 

2017

 

 

2016

 

(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

 

$

48,354

 

 

$

106

 

 

 

0.87

%

 

$

31,794

 

 

$

25

 

 

 

0.31

%

Loans and leases(1)

 

 

2,193,076

 

 

 

30,933

 

 

 

5.60

%

 

 

1,660,323

 

 

 

19,081

 

 

 

4.57

%

Securities available-for-sale(2)

 

 

602,146

 

 

 

3,181

 

 

 

2.10

%

 

 

614,285

 

 

 

2,750

 

 

 

1.78

%

Securities held-to-maturity

 

 

111,345

 

 

 

650

 

 

 

2.32

%

 

 

134,989

 

 

 

649

 

 

 

1.91

%

Tax-exempt securities

 

 

26,166

 

 

 

174

 

 

 

2.63

%

 

 

19,953

 

 

 

152

 

 

 

3.03

%

Total interest-earning assets

 

$

2,981,087

 

 

$

35,044

 

 

 

4.66

%

 

$

2,461,344

 

 

$

22,657

 

 

 

3.66

%

Allowance for loan and lease losses

 

 

(14,570

)

 

 

 

 

 

 

 

 

 

 

(6,938

)

 

 

 

 

 

 

 

 

All other assets

 

 

340,669

 

 

 

 

 

 

 

 

 

 

 

220,494

 

 

 

 

 

 

 

 

 

TOTAL ASSETS

 

$

3,307,186

 

 

 

 

 

 

 

 

 

 

$

2,674,900

 

 

 

 

 

 

 

 

 

LIABILITIES AND STOCKHOLDERS’

   EQUITY

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Deposits

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest checking

 

$

186,447

 

 

$

29

 

 

 

0.06

%

 

$

185,583

 

 

$

33

 

 

 

0.07

%

Money market accounts

 

 

388,365

 

 

 

275

 

 

 

0.28

%

 

 

406,531

 

 

 

261

 

 

 

0.27

%

Savings

 

 

441,096

 

 

 

79

 

 

 

0.07

%

 

 

442,269

 

 

 

76

 

 

 

0.07

%

Time deposits

 

 

758,518

 

 

 

1,729

 

 

 

0.90

%

 

 

507,570

 

 

 

693

 

 

 

0.54

%

Total interest bearing deposits

 

 

1,774,426

 

 

 

2,112

 

 

 

0.47

%

 

 

1,541,953

 

 

 

1,063

 

 

 

0.27

%

Federal Home Loan Bank advances

 

 

222,800

 

 

 

850

 

 

 

1.51

%

 

 

173,141

 

 

 

200

 

 

 

0.46

%

Other borrowed funds

 

 

60,418

 

 

 

670

 

 

 

4.40

%

 

 

38,482

 

 

 

529

 

 

 

5.46

%

Total borrowings

 

 

283,218

 

 

 

1,520

 

 

 

2.13

%

 

 

211,623

 

 

 

729

 

 

 

1.37

%

Total interest bearing liabilities

 

$

2,057,644

 

 

$

3,632

 

 

 

0.70

%

 

$

1,753,576

 

 

$

1,792

 

 

 

0.41

%

Non-interest checking

 

 

748,523

 

 

 

 

 

 

 

 

 

 

 

653,642

 

 

 

 

 

 

 

 

 

Other liabilities

 

 

42,577

 

 

 

 

 

 

 

 

 

 

 

30,913

 

 

 

 

 

 

 

 

 

Total stockholders’ equity

 

 

458,442

 

 

 

 

 

 

 

 

 

 

 

236,769

 

 

 

 

 

 

 

 

 

TOTAL LIABILITIES AND

   STOCKHOLDERS’ EQUITY

 

$

3,307,186

 

 

 

 

 

 

 

 

 

 

$

2,674,900

 

 

 

 

 

 

 

 

 

Net interest spread(3)

 

 

 

 

 

 

 

 

 

 

3.96

%

 

 

 

 

 

 

 

 

 

 

3.25

%

Net interest income

 

 

 

 

 

$

31,412

 

 

 

 

 

 

 

 

 

 

$

20,865

 

 

 

 

 

Net interest margin(4)

 

 

 

 

 

 

 

 

 

 

4.18

%

 

 

 

 

 

 

 

 

 

 

3.37

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net loan accretion impact on margin

 

 

 

 

 

$

2,166

 

 

 

0.29

%

 

 

 

 

 

$

1,185

 

 

 

0.19

%

Net interest margin excluding loan

   accretion(6)

 

 

 

 

 

 

 

 

 

 

3.89

%

 

 

 

 

 

 

 

 

 

 

3.18

%

 

(1)

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

 

(2)

Interest income and rates exclude the effects of a tax equivalent adjustment to adjust tax exempt investment income on tax exempt investment securities to a fully taxable basis due to immateriality.

 

(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.

 

(6)

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.


 

 


Byline Bancorp, Inc.

Page 16 of 17

BYLINE BANCORP, INC. AND SUBSIDIARIES

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

 

 

 

For the Nine Months Ended September 30,

 

 

 

2017

 

 

2016

 

(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

 

$

54,894

 

 

$

327

 

 

 

0.80

%

 

$

29,954

 

 

$

66

 

 

 

0.29

%

Loans and leases(1)

 

 

2,180,507

 

 

 

88,510

 

 

 

5.43

%

 

 

1,543,948

 

 

 

56,334

 

 

 

4.87

%

Securities available-for-sale(2)

 

 

610,249

 

 

 

9,525

 

 

 

2.09

%

 

 

676,334

 

 

 

8,647

 

 

 

1.71

%

Securities held-to-maturity

 

 

116,764

 

 

 

2,027

 

 

 

2.32

%

 

 

136,127

 

 

 

2,033

 

 

 

1.99

%

Tax-exempt securities

 

 

22,033

 

 

 

458

 

 

 

2.78

%

 

 

20,932

 

 

 

509

 

 

 

3.25

%

Total interest-earning assets

 

$

2,984,447

 

 

$

100,847

 

 

 

4.52

%

 

$

2,407,295

 

 

$

67,589

 

 

 

3.75

%

Allowance for loan and lease losses

 

 

(12,715

)

 

 

 

 

 

 

 

 

 

 

(7,525

)

 

 

 

 

 

 

 

 

All other assets

 

 

330,209

 

 

 

 

 

 

 

 

 

 

 

225,316

 

 

 

 

 

 

 

 

 

TOTAL ASSETS

 

$

3,301,941

 

 

 

 

 

 

 

 

 

 

$

2,625,086

 

 

 

 

 

 

 

 

 

LIABILITIES AND STOCKHOLDERS’

   EQUITY

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Deposits

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest checking

 

$

185,409

 

 

$

87

 

 

 

0.06

%

 

$

187,159

 

 

$

97

 

 

 

0.07

%

Money market accounts

 

 

376,751

 

 

 

712

 

 

 

0.25

%

 

 

399,240

 

 

 

747

 

 

 

0.25

%

Savings

 

 

445,082

 

 

 

237

 

 

 

0.07

%

 

 

441,773

 

 

 

227

 

 

 

0.07

%

Time deposits

 

 

782,672

 

 

 

4,482

 

 

 

0.77

%

 

 

526,516

 

 

 

2,210

 

 

 

0.56

%

Total interest bearing deposits

 

 

1,789,914

 

 

 

5,518

 

 

 

0.41

%

 

 

1,554,688

 

 

 

3,281

 

 

 

0.28

%

Federal Home Loan Bank advances

 

 

249,630

 

 

 

2,282

 

 

 

1.22

%

 

 

124,277

 

 

 

371

 

 

 

0.40

%

Other borrowed funds

 

 

68,803

 

 

 

2,286

 

 

 

4.44

%

 

 

37,620

 

 

 

1,571

 

 

 

5.58

%

Total borrowings

 

 

318,433

 

 

 

4,568

 

 

 

1.92

%

 

 

161,897

 

 

 

1,942

 

 

 

1.60

%

Total interest bearing liabilities

 

$

2,108,347

 

 

$

10,086

 

 

 

0.64

%

 

$

1,716,585

 

 

$

5,223

 

 

 

0.41

%

Non-interest checking

 

 

736,982

 

 

 

 

 

 

 

 

 

 

 

650,803

 

 

 

 

 

 

 

 

 

Other liabilities

 

 

41,393

 

 

 

 

 

 

 

 

 

 

 

37,249

 

 

 

 

 

 

 

 

 

Total stockholders’ equity

 

 

415,219

 

 

 

 

 

 

 

 

 

 

 

220,449

 

 

 

 

 

 

 

 

 

TOTAL LIABILITIES AND

   STOCKHOLDERS’ EQUITY

 

$

3,301,941

 

 

 

 

 

 

 

 

 

 

$

2,625,086

 

 

 

 

 

 

 

 

 

Net interest spread(3)

 

 

 

 

 

 

 

 

 

 

3.88

%

 

 

 

 

 

 

 

 

 

 

3.34

%

Net interest income

 

 

 

 

 

$

90,761

 

 

 

 

 

 

 

 

 

 

$

62,366

 

 

 

 

 

Net interest margin(4)

 

 

 

 

 

 

 

 

 

 

4.07

%

 

 

 

 

 

 

 

 

 

 

3.46

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net loan accretion impact on margin

 

 

 

 

 

$

6,347

 

 

 

0.28

%

 

 

 

 

 

$

1,502

 

 

 

0.08

%

Net interest margin excluding loan

   accretion(6)

 

 

 

 

 

 

 

 

 

 

3.79

%

 

 

 

 

 

 

 

 

 

 

3.38

%

 

(1)

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

 

(2)

Interest income and rates exclude the effects of a tax equivalent adjustment to adjust tax exempt investment income on tax exempt investment securities to a fully taxable basis due to immateriality.

 

(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.

 

(6)

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.


 

 


Byline Bancorp, Inc.

Page 17 of 17

BYLINE BANCORP, INC. AND SUBSIDIARIES

RECONCILIATION OF NON-GAAP FINANCIAL MEASURES (unaudited)

 

 

 

As of or For the Three Months Ended

 

 

As of or For the Nine Months Ended

 

 

 

September 30,

 

 

June 30,

 

 

March 31,

 

 

September 30,

 

 

September 30,

 

 

September 30,

 

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

 

2017

 

 

2017

 

 

2017

 

 

2016

 

 

2017

 

 

2016

 

Net interest margin:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Reported net interest margin

 

 

4.18

%

 

 

4.02

%

 

 

4.00

%

 

 

3.37

%

 

 

4.07

%

 

 

3.46

%

Effect of accretion income on

   acquired loans

 

 

(0.29

)%

 

 

(0.33

)%

 

 

(0.23

)%

 

 

(0.19

)%

 

 

(0.28

)%

 

 

(0.08

)%

Net interest margin excluding

   accretion

 

 

3.89

%

 

 

3.69

%

 

 

3.77

%

 

 

3.18

%

 

 

3.79

%

 

 

3.38

%

Total revenues:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net interest income

 

$

31,412

 

 

$

29,811

 

 

$

29,538

 

 

$

20,865

 

 

$

90,761

 

 

$

62,366

 

Add: Non-interest income

 

 

11,918

 

 

 

13,193

 

 

 

12,308

 

 

 

4,776

 

 

 

37,419

 

 

 

15,262

 

Total revenues

 

$

43,330

 

 

$

43,004

 

 

$

41,846

 

 

$

25,641

 

 

$

128,180

 

 

$

77,628

 

Non-interest income to total

   revenues:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Non-interest income

 

$

11,918

 

 

$

13,193

 

 

$

12,308

 

 

$

4,776

 

 

$

37,419

 

 

$

15,262

 

Total revenues

 

 

43,330

 

 

 

43,004

 

 

 

41,846

 

 

 

25,641

 

 

 

128,180

 

 

 

77,628

 

Non-interest income to total

   revenues

 

 

27.51

%

 

 

30.68

%

 

 

29.41

%

 

 

18.63

%

 

 

29.19

%

 

 

19.66

%

Pre-tax pre-provision net income:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Pre-tax income

 

$

8,365

 

 

$

10,240

 

 

$

11,104

 

 

$

1,574

 

 

$

29,709

 

 

$

2,592

 

Add: Provision for loan and lease

   losses

 

 

3,900

 

 

 

3,515

 

 

 

1,891

 

 

 

1,683

 

 

 

9,306

 

 

 

5,348

 

Pre-tax pre-provision net income

 

$

12,265

 

 

$

13,755

 

 

$

12,995

 

 

$

3,257

 

 

$

39,015

 

 

$

7,940

 

Pre-tax pre-provision return on

   average assets:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total average assets

 

$

3,307,186

 

 

$

3,284,665

 

 

$

3,315,095

 

 

$

2,674,900

 

 

$

3,301,941

 

 

$

2,625,086

 

Pre-tax pre-provision net income

 

 

12,265

 

 

 

13,755

 

 

 

12,995

 

 

 

3,257

 

 

 

39,015

 

 

 

7,940

 

Pre-tax pre-provision return on

   average assets

 

 

1.47

%

 

 

1.68

%

 

 

1.59

%

 

 

0.48

%

 

 

1.58

%

 

 

0.40

%

Tangible common equity:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total stockholders' equity

 

$

459,533

 

 

$

447,731

 

 

$

389,683

 

 

$

251,104

 

 

$

459,533

 

 

$

251,104

 

Less: Preferred stock

 

 

10,438

 

 

 

10,438

 

 

 

25,441

 

 

 

15,003

 

 

 

10,438

 

 

 

15,003

 

Less: Goodwill

 

 

51,975

 

 

 

51,975

 

 

 

51,975

 

 

 

25,688

 

 

 

51,975

 

 

 

25,688

 

Less: Core deposit intangibles and

   other intangibles

 

 

17,522

 

 

 

18,290

 

 

 

19,058

 

 

 

20,100

 

 

 

17,522

 

 

 

20,100

 

Tangible common equity

 

$

379,598

 

 

$

367,028

 

 

$

293,209

 

 

$

190,313

 

 

$

379,598

 

 

$

190,313

 

Tangible assets:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total assets

 

$

3,305,442

 

 

$

3,360,122

 

 

$

3,284,713

 

 

$

2,747,929

 

 

$

3,305,442

 

 

$

2,747,929

 

Less: Goodwill

 

 

51,975

 

 

 

51,975

 

 

 

51,975

 

 

 

25,688

 

 

 

51,975

 

 

 

25,688

 

Less: Core deposit intangibles and

   other intangibles

 

 

17,522

 

 

 

18,290

 

 

 

19,058

 

 

 

20,100

 

 

 

17,522

 

 

 

20,100

 

Tangible assets

 

$

3,235,945

 

 

$

3,289,857

 

 

$

3,213,680

 

 

$

2,702,141

 

 

$

3,235,945

 

 

$

2,702,141

 

Tangible book value per share:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Tangible common equity

 

$

379,598

 

 

$

367,028

 

 

$

293,209

 

 

$

190,313

 

 

$

379,598

 

 

$

190,313

 

Shares of common stock outstanding

 

 

29,305,400

 

 

 

29,246,900

 

 

 

24,616,706

 

 

 

20,410,850

 

 

 

29,305,400

 

 

 

20,410,850

 

Tangible book value per share

 

$

12.95

 

 

$

12.55

 

 

$

11.91

 

 

$

9.32

 

 

$

12.95

 

 

$

9.32

 

Tangible common equity to

   tangible assets:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Tangible common equity

 

$

379,598

 

 

$

367,028

 

 

$

293,209

 

 

$

190,313

 

 

$

379,598

 

 

$

190,313

 

Tangible assets

 

 

3,235,945

 

 

 

3,289,857

 

 

 

3,213,680

 

 

 

2,702,141

 

 

 

3,235,945

 

 

 

2,702,141

 

Tangible common equity to tangible

   assets

 

 

11.73

%

 

 

11.16

%

 

 

9.12

%

 

 

7.04

%

 

 

11.73

%

 

 

7.04

%