Byline Bancorp, Inc. Reports Second Quarter 2017 Financial Results

Second Quarter 2017 Summary

  • Net income of $6.1 million for second quarter of 2017
  • Successful initial public offering raises net proceeds of $82.7 million
  • As previously disclosed, negotiated the repurchase of Series A preferred stock and records preferred stock dividend of $10.5 million as part of the transaction, impacting diluted earnings per share by $0.42
  • Net interest margin improves to 4.02%
  • Non-interest bearing deposits composition improves to 30.8%
  • Loan pipelines remain strong at the end of the quarter
  • Efficiency ratio improves to 66.23%

CHICAGO--()--Byline Bancorp, Inc. (NYSE: BY), the holding company of Byline Bank, today reported net income of $6.1 million for the second quarter of 2017, compared with net income of $6.6 million for the first quarter of 2017, and net income of $2.6 million for the second quarter of 2016.

“We are pleased to report our second quarter earnings, for the first time as a public company, following the successful completion of our initial public offering and listing on the New York Stock Exchange on June 30, 2017,” said Alberto Paracchini, President and Chief Executive Officer of Byline Bancorp, Inc. “The capital raised through our IPO will allow us to continue growing the Byline franchise and increase our market share among small businesses and middle-market companies in the markets we serve. We believe this a very exciting time for Byline. Our second quarter results reflect the positive impact of our efforts over the past year to drive revenue growth and improve efficiencies. Compared to the second quarter of 2016, our total revenues increased by more than 60% while our efficiency ratio improved to 66.23% from 83.03%. As a result, we were able to deliver a 136.2% year-over-year increase in net income.

“Our new loan and lease production has steadily increased throughout the first half of the year and that momentum has carried over into the third quarter. Our pipelines remain strong across all of our teams which should result in stronger balance sheet growth for the second half of the year. As we continue to attract new customers and talented bankers, add quality assets and leverage our strong core deposit base, we anticipate generating a steady increase in our level of profitability and creating long-term value for our stockholders,” said Mr. Paracchini.

As previously disclosed, during the second quarter of 2017 and in connection with the Company’s initial public offering, the Company agreed to repurchase all $15.0 million of its outstanding shares of Series A Preferred Stock for $25.5 million. The $10.5 million excess of the consideration paid over the $15.0 million carrying amount of the Series A Preferred Stock was treated as a one-time dividend declaration on the Series A Preferred Stock in accordance with applicable accounting guidance. Both the dividend declared on the Series A Preferred Stock and the regular quarterly dividend paid on the Series B Preferred Stock are reflected in the reported net loss attributable to common stockholders for the second quarter of 2017, which was $4.6 million, or $0.18 per common share. The one-time impact of the Series A Preferred stock repurchase was $0.42 per diluted common share.

Net Interest Income

Net interest income for the second quarter of 2017 was $29.8 million, compared with $29.5 million for the first quarter of 2017. The increase in net interest income was due primarily to an increase in accretion income attributable to the acquired purchased credit impaired loans in our portfolio and an increase in loan yields stemming from rising interest rates. The increase in accretion income was driven by an improvement in the expected future performance of the acquired purchase credit impaired loans in the portfolio.

Relative to the second quarter of 2016, net interest income increased 46.3%. The increase was primarily attributable to organic growth in the loan and lease portfolio and the impact of the Ridgestone Financial Services, Inc. acquisition completed in October 2016.

Net Interest Margin

Net interest margin for the second quarter of 2017 was 4.02%, up 2 basis points from the first quarter of 2017. Net interest margin for the second quarter of 2017 increased due to additional accretion income and increased earning asset yields due to the rise in short term interest rates during the quarter. This was offset by increases in the cost of interest bearing liabilities.

Relative to the second quarter of 2016, the net interest margin increased from 3.41%, primarily due to an increase in accretion income and a favorable shift in the mix and yield of earning assets.

Non-interest Income

Non-interest income for the second quarter of 2017 was $13.2 million, an increase of 7.2% from $12.3 million for the first quarter of 2017. The increase was primarily due to higher gain on sale income and servicing income.

The Company’s net gain on sales of government guaranteed loans is generated through its Small Business Capital (SBC) group which was established in conjunction with the acquisition of Ridgestone Financial Services, Inc.

During the second quarter of 2017, the Company recognized $8.3 million in net gains on sales of government guaranteed loans, compared to $8.2 million for the first quarter of 2017. The increase was attributable to a higher average net premium on sales of government guaranteed loans. During the second quarter of 2017, the Company sold $75.1 million of government guaranteed loans compared to $76.5 million in the first quarter of 2017.

Non-interest income increased 112.9% from $6.2 million in the second quarter of 2016. The increase was primarily attributable to net gains on sales of government guaranteed loans and associated servicing fees resulting from the acquisition of Ridgestone Financial Services, Inc.

Non-interest Expense

Non-interest expense for the second quarter of 2017 was $29.2 million, compared with $28.9 million for the first quarter of 2017, a 1.0% increase. Compared to the prior quarter, the most significant variances included a $711,000 increase in other real estate owned expenses primarily due to a reduction in the net gain on sales of other real estate owned, a $624,000 increase in salaries and employee benefits expense associated with an increase in lending personnel during the quarter, which was partially offset by a $581,000 decrease in professional fees. When compared to the second quarter 2016, non-interest expense increased by $6.4 million primarily due to personnel and operating expenses added as a result of the Ridgestone Financial Services, Inc. acquisition.

The Company’s efficiency ratio was 66.23% in the second quarter of 2017, compared with 67.11% in the first quarter of 2017 and 83.03% in the second quarter of 2016. The improvement in efficiency ratio from the prior periods is primarily attributable to higher revenues resulting from the acquisition of Ridgestone Financial Services, Inc. and organic loan and lease growth, combined with cost savings recognized from branch consolidations in 2016.

Loan and Lease Portfolio

Total loans and leases held for investment were $2.1 billion at June 30, 2017, an increase of $5.9 million from March 31, 2017. The Company’s originated loan and lease portfolio increased by $154.8 million during the second quarter of 2017, which was offset by $148.9 million of net run-off in the portfolio. The growth in the originated loan and lease portfolio was primarily driven by increases in commercial real estate loans, government guaranteed lending, and leases.

During the first half of the year we experienced a higher than anticipated level of run-off in our loan portfolio driven by several commercial real estate construction projects achieving stabilization, refinancing activity in syndicated credits where we opted not to participate in the new facility and a commercial loan that paid off in full.

Deposits

Total deposits were $2.5 billion at June 30, 2017, compared with $2.6 billion at March 31, 2017. The deposit mix changed slightly with non-interest bearing demand deposits increasing by $49.4 million offset by a decrease in municipal deposits subject to seasonality and run-off in the time deposits acquired as part of the Ridgestone acquisition. The increase in non-interest bearing deposits was driven by new deposit relationships and loan fundings that occurred at the end of the quarter. Non-interest bearing deposits accounted for 30.8% of total deposits for the second quarter versus 28.4% in the first quarter. Core deposits remained stable at 84.9% of total deposits at June 30, 2017.

Asset Quality

Non-performing assets totaled $29.0 million, or 0.86% of total assets, at June 30, 2017, an increase from $22.0 million, or 0.67% of total assets, at March 31, 2017. The increase in non-performing assets during the second quarter of 2017 was primarily due to an increase in nonaccrual loans of $7.4 million primarily in the government guaranteed loan portfolio, partially offset by a decrease in other real estate owned of $489,000.

The increase in nonaccrual loans for the quarter was driven primarily by two commercial loans. One of the loans is a government guaranteed loan carrying an 80% government guaranty and the other is fully secured by cash.

Net charge-offs for the second quarter of 2017 were $1.4 million, or 0.26% of average loans and leases, on an annualized basis, compared to $1.0 million, or 0.19%, for the first quarter of 2017, and $2.6 million, or 0.68%, for the second quarter of 2016.

The Company recorded a provision for loan and lease losses of $3.5 million for the second quarter of 2017, compared to $1.9 million for the first quarter of 2017, and $1.2 million for the second quarter of 2016, reflecting growth in the loan and lease portfolio and net impairment of certain acquired loans based on a periodic update of expected loan cash flows. The updated estimates of expected loan cash flows on acquired loans also resulted in the reclassification of approximately $15.4 million of non-accretable yield to accretable yield that will be prospectively recognized over the estimated life of the loans.

The Company’s allowance for loan and lease losses was 0.65% of total loans and leases and 85.85% of non-performing loans and leases at June 30, 2017, compared to 0.55% and 133.57%, respectively, at March 31, 2017. The reduction in the ratio was driven by the increase in nonaccrual loans. The acquisition accounting adjustment on acquired loans was $37.7 million and $41.0 million at June 30, 2017 and March 31, 2017, respectively.

Capital

At June 30, 2017, the Company exceeded all applicable regulatory capital requirements under Basel III, as summarized in the following table:

  June 30, 2017     December 31, 2016    

Regulatory Requirements
for the Bank to be
considered “Well-Capitalized”

Total capital to risk-weighted assets 15.68%     13.28%     10.00%
Tier 1 capital to risk-weighted assets 15.06% 12.78% 8.00%
Common equity Tier 1 capital to risk weighted assets 13.61% 11.20% 6.50%
Tier 1 capital to average assets 11.73% 10.07% 5.00%
Tangible common equity to tangible assets 11.16% 8.85% NA
 

Conference Call, Webcast and Slide Presentation

The Company will host a conference call and webcast at 9:00 a.m. Central Time on Friday, July 28, 2017 to discuss its quarterly financial results. The call can be accessed via telephone at (888) 317-6016. A recorded replay can be accessed through August 11, 2017 by dialing (877) 344-7529; passcode: 10110708.

A slide presentation relating to the second 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 holding company for Byline Bank, a full service commercial bank serving small- and medium-sized businesses, financial sponsors, and consumers. Byline Bank had $3.3 billion in assets at June 30, 2017, 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.

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 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 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 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. 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 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.

 
BYLINE BANCORP, INC.
CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION (unaudited)
     
         
June 30, March 31, June 30,
(in thousands)   2017     2017     2016  
Assets
Cash and cash equivalents $ 79,821 $

83,267

$ 60,234
Securities available-for-sale, at fair value 591,933 590,507 627,030
Securities held-to-maturity, at amortized cost 127,397 132,897 150,892
Restricted stock, at cost 11,978 9,503 9,350
Loans held for sale 6,835 23,492 2,077
Loans and leases 2,149,390 2,143,534 1,603,619
Allowance for loan and lease losses   (13,969 )   (11,817 )   (6,490 )
Net loans and leases 2,135,421 2,131,717 1,597,129
Servicing assets, at fair value 21,424 21,223 -
Accrued interest receivable 6,961 7,498 5,705
Premises and equipment, net 98,891 99,563 105,843
Assets held for sale 13,666 13,666 11,208
Other real estate owned, net 12,684 13,173 18,894
Goodwill 51,975 51,975 25,688
Other intangible assets, net 18,290 19,058 20,845
Bank-owned life insurance 5,643 6,676 4,137
Deferred tax assets, net 58,784 62,925 -
Due from broker 82,699 - -
Other assets   35,720     17,573     10,175  
Total assets $ 3,360,122   $ 3,284,713   $ 2,649,207  
 
Liabilities and Stockholders' Equity
Non-interest bearing demand deposits $ 781,636 $ 732,267 $ 645,895
NOW, savings accounts, and money market accounts 980,875 1,032,536 1,003,507
Time deposits   778,087     811,036     495,953  
Total deposits 2,540,598 2,575,839 2,145,355
Accrued interest payable 1,562 1,893 541
Line of credit 16,150 18,150 -
Federal Home Loan Bank advances 219,611 209,663 190,000
Securities sold under agreements to repurchase 32,429 31,940 11,536
Junior subordinated debentures issued to capital trusts, net 27,309 27,130 25,153
Accrued expenses and other liabilities   74,732     30,415     40,922  
Total liabilities 2,912,391 2,895,030 2,413,507
Total stockholders’ equity   447,731     389,683     235,700  
Total liabilities and stockholders' equity $ 3,360,122   $ 3,284,713   $ 2,649,207  
 
 
BYLINE BANCORP, INC.
CONSOLIDATED STATEMENTS OF OPERATIONS (unaudited)
         
For the six months ended For the three months ended
June 30, June 30, June 30, March 31, June 30,
(in thousands, except per share data)   2017     2016     2017     2017     2016
Net interest income:
Total interest income $ 65,803 $ 44,932 $ 33,315 $ 32,488 $ 22,055
Total interest expense   6,454     3,431     3,504     2,950  

 

1,674
Net interest income 59,349 41,501 29,811 29,538 20,381
Provision for loan and lease losses   5,406     3,665     3,515     1,891     1,152
Net interest income after provision for loan and lease losses   53,943     37,836     26,296     27,647     19,229
Non-interest income:
Fees and service charges on deposits 2,567 2,762 1,348 1,219 1,373
Servicing fees 1,995 - 1,076 919 -
ATM and interchange fees 2,847 2,922 1,499 1,348 1,514
Net gains on sales of securities available-for-sale 9 2,429 1 8 1,506
Net gains on sales of loans 16,527 21 8,445 8,082 21
Other non-interest income   1,556     2,352     824     732     1,784
Total non-interest income   25,501     10,486     13,193     12,308     6,198
Non-interest expense:
Salaries and employee benefits 33,828 22,940 17,226 16,602 11,000
Occupancy expense, net 7,224 7,561 3,485 3,739 3,759
Equipment expense 1,179 1,003 616 563 468
Loan and lease related expenses 1,678 647 801 877 186
Legal, audit and other professional fees 2,761 2,720 1,090 1,671 1,727
Data processing 4,856 3,770 2,447 2,409 1,950
Net (gain) loss recognized on other real estate owned and other related expenses (429 ) 1,094 141 (570 ) 195
Regulatory assessments 568 1,428 384 184 578
Other intangible assets amortization expense 1,538 1,495 769 769 748
Advertising and promotions 607 298 318 289 63
Telecommunications 814 914 396 418 456
Other non-interest expense   3,476     3,434     1,576     1,900     1,687
Total non-interest expense   58,100     47,304     29,249     28,851     22,817
Income before provision for income taxes 21,344 1,018 10,240 11,104 2,610
Provision (benefit) for income taxes   8,638     (231 )   4,094     4,544     9
Net income   12,706     1,249     6,146     6,560     2,601
Dividends on preferred shares   10,886     -     10,697     189     -
Net income (loss) available (attributable) to common stockholders $ 1,820   $ 1,249   $ (4,551 ) $ 6,371   $ 2,601
 
Basic earnings (loss) per common share $ 0.07 $ 0.07 $ (0.18 ) $ 0.26 $ 0.13
Diluted earnings (loss) per common share $ 0.07 $ 0.07 $ (0.18 ) $ 0.25 $ 0.13
 
 
BYLINE BANCORP, INC.
CONSOLIDATED FINANCIAL SUMMARY (unaudited)
         
For the six months ended For the three months ended
June 30, June 30, June 30, March 31, June 30,
(dollars in thousands, except share and per share data)   2017     2016     2017     2017     2016  
Summary of Operations
Net interest income $ 59,349 $ 41,501 $ 29,811 $ 29,538 $ 20,381
Provision for loan and lease losses 5,406 3,665 3,515 1,891 1,152
Non-interest income 25,501 10,486 13,193 12,308 6,198
Non-interest expense   58,100     47,304     29,249     28,851     22,817  
Income before provision for income taxes 21,344 1,018 10,240 11,104 2,610
Provision (benefit) for income taxes   8,638     (231 )   4,094     4,544     9  
Net income   12,706     1,249     6,146     6,560     2,601  
Dividends on preferred shares   10,886     -     10,697     189     -  
Net income (loss) available (attributable) to common stockholders $ 1,820   $ 1,249   $ (4,551 ) $ 6,371   $ 2,601  
 
Earnings per Common Share
Basic earnings (loss) per common share $ 0.07 $ 0.07 $ (0.18 ) $ 0.26 $ 0.13
Diluted earnings (loss) per common share $ 0.07 $ 0.07 $ (0.18 ) $ 0.25 $ 0.13
Weighted average common shares outstanding (basic) 24,642,287 18,505,002 24,667,587 24,616,706 19,487,778
Weighted average common shares outstanding (diluted) 25,106,887 18,759,074 24,667,587 25,078,427 19,741,850
Common shares outstanding 29,246,900 19,487,778 29,246,900 24,616,706 19,487,778
 
Key Ratios (annualized where applicable)
Net interest margin

4.01

%

3.51 % 4.02 % 4.00 % 3.41 %
Cost of deposits 0.27 % 0.20 % 0.30 % 0.24 % 0.19 %
Efficiency ratio (1) 66.66 % 88.12 % 66.23 % 67.11 % 83.03 %
Non-interest expense to average assets 3.55 % 3.66 % 3.57 % 3.53 % 3.50 %
Return on average stockholders' equity 6.52 % 1.18 % 6.21 % 6.83 % 4.53 %
Return on average assets 0.78 % 0.10 % 0.75 % 0.80 % 0.40 %
Non-interest income to total revenues (2) 30.05 % 20.17 % 30.68 % 29.41 % 23.32 %
Pre-tax pre-provision return on average assets (2) 1.63 % 0.36 % 1.68 % 1.59 % 0.58 %
Non-interest bearing deposits / total deposits 30.77 % 30.11 % 30.77 % 28.43 % 30.11 %
Deposits / branch $ 44,572 $ 32,020 $ 44,572 $ 45,190 $ 32,020

Loans and leases held for sale and loans and leases held for investment/ total deposits

84.87 % 74.85 % 84.87 % 84.13 % 74.85 %
Deposits / total liabilities 87.23 % 88.89 % 87.23 % 88.97 % 88.89 %
Tangible book value per common share (2) $ 12.55 $ 8.94 $ 12.55 $ 11.91 $ 8.94
 
 
(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 "Reconciliations 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.
CONSOLIDATED FINANCIAL SUMMARY (unaudited) (continued)
     
As of or for the period ended,
June 30, March 31, June 30,
  2017     2017     2016  
Asset Quality Ratios

Non-performing loans and leases / total loans and leases held for investment, net before ALLL

0.76 % 0.41 % 0.54 %
ALLL / total loans and leases held for investment, net before ALLL 0.65 % 0.55 % 0.40 %

Net charge-offs / average total loans and leases held for investment, net before ALLL

0.22 % 0.19 % 0.65 %
Acquisition accounting adjustments (in thousands) (3) $ 37,713 $ 41,024 $ 18,589
 
Capital Ratios
Common equity to total assets 13.01 % 11.09 % 8.33 %
Total capital to risk-weighted assets 15.68 % 13.49 % 13.14 %
Tier 1 capital to risk-weighted assets 15.06 % 12.94 % 12.74 %
Common equity Tier 1 capital to risk weighted assets 13.61 % 10.85 % 9.94 %
Tier 1 capital to average assets 11.73 % 9.59 % 8.81 %
Tangible common equity to tangible assets (2) 11.16 % 9.12 % 6.69 %
 
 
(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 "Reconciliations 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.
COMPOSITION OF LOANS, LEASES AND DEPOSITS (unaudited)
     
         
June 30, March 31, June 30,
(in thousands)   2017   2017   2016
Composition of Loans and Leases
Commercial real estate $ 829,189 $ 822,850 $ 534,226
Residential real estate 584,716 601,407

 

628,979
Construction land development, and other land 92,636 105,315 77,219
Commercial and industrial 469,505 448,467 223,688
Installment and other 3,515 2,820 1,641
Lease financing receivables   169,829   162,675   137,866
Total loans and leases $ 2,149,390 $ 2,143,534 $ 1,603,619
 
Composition of Deposits
Non-interest checking $ 781,636 $ 732,267 $ 645,895
Interest checking 182,351 192,317 175,916
Money market accounts 353,304 393,372 383,274
Savings 445,220 446,847 444,317
Time deposits (below $100,000) 395,385 407,471 291,738
Time deposits ($100,000 and above)   382,702   403,565   204,215
Total deposits $ 2,540,598 $ 2,575,839 $ 2,145,355
 
 
BYLINE BANCORP, INC.
RECONCILIATIONS OF NON-GAAP FINANCIAL MEASURES (unaudited)
         
As of or for the six months ended As of or for the three months ended
June 30, June 30, June 30, March 31, June 30,
(dollars in thousands, except share and per share data)   2017     2016     2017     2017     2016  
Total revenues:
Net interest income $ 59,349 $ 41,501 $ 29,811 $ 29,538 $ 20,381
Add: Non-interest income 25,501 10,486 13,193 12,308

 

6,198
Total revenues $ 84,850 $ 51,987 $ 43,004 $ 41,846 $ 26,579
Non-interest income to total revenues:
Non-interest income $ 25,501 $ 10,486 $ 13,193 $ 12,308 $ 6,198
Total revenues 84,850 51,987 43,004 41,846 26,579
Non-interest income to total revenues 30.05 % 20.17 % 30.68 % 29.41 % 23.32 %
Pre-tax pre-provision net income:
Pre-tax income $ 21,344 $ 1,018 $ 10,240 $ 11,104 $ 2,610
Add: Provision for loan and lease losses 5,406 3,665 3,515 1,891 1,152
Pre-tax pre-provision net income $ 26,750 $ 4,683 $ 13,755 $ 12,995 $ 3,762
Pre-tax pre-provision return on average assets:
Total average assets $ 3,299,457 $ 2,599,905 $ 3,284,665 $ 3,315,095 $ 2,622,373
Pre-tax pre-provision net income 26,750 4,683 13,755 12,995 3,762
Pre-tax pre-provision return on average assets 1.63 % 0.36 % 1.68 % 1.59 % 0.58 %
Tangible common equity:
Total stockholders' equity $ 447,731 $ 235,700 $ 447,731 $ 389,683 $ 235,700
Less: Preferred stock 10,438 15,003 10,438 25,441 15,003
Less: Goodwill 51,975 25,688 51,975 51,975 25,688
Less: Core deposit intangibles and other intangibles 18,290 20,845 18,290 19,058 20,845
Tangible common equity $ 367,028 $ 174,164 $ 367,028 $ 293,209 $ 174,164
Tangible assets:
Total assets $ 3,360,122 $ 2,649,207 $ 3,360,122 $ 3,284,713 $ 2,649,207
Less: Goodwill 51,975 25,688 51,975 51,975 25,688
Less: Core deposit intangibles and other intangibles 18,290 20,845 18,290 19,058 20,845
Tangible assets $ 3,289,857 $ 2,602,674 $ 3,289,857 $ 3,213,680 $ 2,602,674
Tangible book value per share:
Tangible common equity $ 367,028 $ 174,164 $ 367,028 $ 293,209 $ 174,164
Shares of common stock outstanding 29,246,900 19,487,778 29,246,900 24,616,706 19,487,778
Tangible book value per share $ 12.55 $ 8.94 $ 12.55 $ 11.91 $ 8.94
Tangible common equity to tangible assets:
Tangible common equity $ 367,028 $ 174,164 $ 367,028 $ 293,209 $ 174,164
Tangible assets 3,289,857 2,602,674 3,289,857 3,213,680 2,602,674
Tangible common equity to tangible assets 11.16 % 6.69 % 11.16 % 9.12 % 6.69 %
 
 
BYLINE BANCORP, INC.
NET INTEREST MARGIN (unaudited)
   
For the six months ended,
June 30, 2017   June 30, 2016
       
Average

Balance

Interest

Inc / Exp

Average

Yield /

Rate

Average Balance Interest Inc / Exp Average Yield / Rate
ASSETS
Cash and cash equivalents $ 58,218 $ 222 0.77 % $ 29,024 $ 41 0.28 %
Loans and leases 2,174,118 57,577 5.34 % 1,485,121 37,253 5.04 %
Securities available-for-sale 614,367 6,344 2.08 % 707,699 5,897

1.68

%
Securities held-to-maturity 119,518 1,376 2.32 % 136,702 1,384 2.04 %
Tax-exempt securities   19,933     284 2.87 %   21,428     357 3.35 %
Total interest-earning assets $ 2,986,154   $ 65,803 4.44 % $ 2,379,974   $ 44,932

3.80

%
Allowance for loan losses (11,772 ) (7,821 )
All other assets   325,075     227,752  
TOTAL ASSETS $ 3,299,457   $ 2,599,905  
 
LIABILITIES & STOCKHOLDERS' EQUITY
Deposits
Interest Checking $ 184,881 $ 58 0.06 % $ 187,955 $ 64 0.07 %
Money market accounts 370,848 438 0.24 % 395,555 485 0.25 %
Savings 447,107 158 0.07 % 441,522 151 0.07 %
Time Deposits 794,950 2,752 0.70 % 536,093 1,518 0.57 %
Federal Home Loan Bank advances 263,268 1,432 1.10 % 99,577 171 0.35 %
Other Borrowed Funds   73,065     1,616 4.46 %   37,184     1,042 5.64 %
Total interest bearing liabilities $ 2,134,119   $ 6,454 0.61 % $ 1,697,886   $ 3,431 0.41 %
Non-interest checking 731,117 649,368
Other liabilities 40,972 40,452
Total stockholders' equity   393,249     212,199  
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY $ 3,299,457   $ 2,599,905  
 
 
Net interest spread 3.83 % 3.39 %
Net interest income $ 59,349 $ 41,501
Net interest margin 4.01 % 3.51 %
 
 

BYLINE BANCORP, INC.

NET INTEREST MARGIN (unaudited) (continued)

   
For the three months ended,

June 30, 2017

 

March 31, 2017

       
Average

Balance

Interest

Inc / Exp

Average

Yield /

Rate

Average Balance Interest Inc / Exp Average Yield / Rate
ASSETS
Cash and cash equivalents $ 80,327 $ 174 0.87 % $ 35,864 $ 48 0.54 %
Loans and leases 2,153,482 29,181 5.44 % 2,194,984 28,396 5.25 %
Securities available-for-sale 605,688 3,134 2.08 % 623,144 3,210 2.09 %
Securities held-to-maturity 116,931 675 2.32 % 122,134 701 2.33 %
Tax-exempt securities   21,413     151 2.83 %   18,436     133

2.93

%
Total interest-earning assets $ 2,977,841   $ 33,315 4.49 % $ 2,994,562   $ 32,488 4.40 %
Allowance for loan losses (12,377 ) (11,160 )
All other assets   319,201     331,693  
TOTAL ASSETS $ 3,284,665   $ 3,315,095  

 

LIABILITIES & STOCKHOLDERS' EQUITY
Deposits
Interest Checking $ 187,825 $ 31 0.07 % $ 181,903 $ 27 0.06 %
Money market accounts 374,383 226 0.24 % 367,273 212 0.23 %
Savings 447,324 79 0.07 % 446,891 79 0.07 %
Time Deposits 799,285 1,586 0.80 % 790,566 1,165 0.60 %
Federal Home Loan Bank advances 225,579 772 1.37 % 301,375 660 0.89 %
Other Borrowed Funds   76,255     810 4.26 %   69,841     807 4.69 %
Total interest bearing liabilities $ 2,110,651   $ 3,504 0.67 % $ 2,157,849   $ 2,950 0.55 %
Non-interest checking 745,907 716,162
Other liabilities 31,290 51,443
Total stockholders' equity   396,817     389,641  
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY $ 3,284,665   $ 3,315,095  
 
 
Net interest spread 3.82 % 3.85 %
Net interest income $ 29,811 $ 29,538
Net interest margin 4.02 % 4.00 %
 
 
BYLINE BANCORP, INC.
NET INTEREST MARGIN (unaudited) (continued)
   

For the three months ended,

June 30, 2017   June 30, 2016
       
Average

Balance

Interest

Inc / Exp

Average

Yield /

Rate

Average Balance Interest Inc / Exp Average Yield / Rate
ASSETS
Cash and cash equivalents $ 80,327 $ 174 0.87 % $ 32,110 $ 24 0.30 %
Loans and leases 2,153,482 29,181 5.44 % 1,522,987 18,254 4.82 %
Securities available-for-sale 605,688 3,134 2.08 % 685,128 2,914 1.71 %
Securities held-to-maturity 116,931 675 2.32 % 141,592 685 1.95 %
Tax-exempt securities   21,413     151 2.83 %   21,423     178 3.34 %
Total interest-earning assets $ 2,977,841   $ 33,315 4.49 % $ 2,403,240   $ 22,055 3.69 %
Allowance for loan losses (12,377 ) (7,856 )
All other assets   319,201    

226,989

 
TOTAL ASSETS $ 3,284,665   $ 2,622,373  
 
LIABILITIES & STOCKHOLDERS' EQUITY
Deposits

 

Interest Checking $ 187,825 $ 31 0.07 % $ 189,269 $ 33 0.07 %
Money market accounts 374,383 226 0.24 % 402,000 257 0.26 %
Savings 447,324 79 0.07 % 443,182 76 0.07 %
Time Deposits 799,285 1,586 0.80 % 516,333 699 0.54 %
Federal Home Loan Bank advances 225,579 772 1.37 % 102,945 93 0.36 %
Other Borrowed Funds   76,255     810 4.26 %   37,308     516 5.56 %
Total interest bearing liabilities $ 2,110,651   $ 3,504 0.67 % $ 1,691,037   $ 1,674 0.40 %
Non-interest checking 745,907 651,200
Other liabilities 31,290 49,306
Total stockholders' equity   396,817     230,830  
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY $ 3,284,665   $ 2,622,373  
 
 
Net interest spread 3.82 % 3.29 %
Net interest income $ 29,811 $ 20,381
Net interest margin 4.02 % 3.41 %

Contacts

Investors:
Financial Profiles, Inc.
Allyson Pooley/Tony Rossi
IRBY@bylinebank.com
or
Media:
Byline Bank
Erin O’Neill
Director of Marketing
773-475-2901
eoneill@bylinebank.com

Contacts

Investors:
Financial Profiles, Inc.
Allyson Pooley/Tony Rossi
IRBY@bylinebank.com
or
Media:
Byline Bank
Erin O’Neill
Director of Marketing
773-475-2901
eoneill@bylinebank.com