Byline Bancorp, Inc. Reports Third Quarter 2019 Financial Results

Third Quarter 2019 Highlights

  • Net income of $15.3 million, or $0.39 per diluted share
    • Adjusted net income1 of $16.2 million, or $0.41 per adjusted diluted share1
  • Net interest margin of 4.62% for the third quarter of 2019, compared to 4.51% for the second quarter of 2019, and 4.73% for the third quarter of 2018
  • Originated loans and leases of $2.8 billion at September 30, 2019, an increase of $183.9 million, or 7.1%, from June 30, 2019
  • Efficiency ratio of 59.81% for the third quarter of 2019, compared to 61.19% for the second quarter of 2019, and 56.41% for the third quarter of 2018
    • Adjusted efficiency ratio1 of 58.17% for the third quarter of 2019, compared to 56.02% for the second quarter of 2019, and 55.62% for the third quarter of 2018
  • Return on average assets of 1.12% for the third quarter of 2019, compared to 1.00% for the second quarter of 2019, and 1.20% for the third quarter of 2018
  • Return on average stockholders’ equity of 8.34% for the third quarter of 2019, compared to 7.60% for the second quarter of 2019, and 9.22% for the third quarter of 2018
  • Successfully completed the core system conversion of Oak Park River Forest Bankshares, Inc. in September 2019

 

CHICAGO--()--Byline Bancorp, Inc. (the “Company” or “Byline”) (NYSE: BY), the parent company of Byline Bank (the “Bank”), today reported net income of $15.3 million, or $0.39 per diluted share, for the third quarter of 2019, compared with net income of $13.2 million, or $0.34 per diluted share, for the second quarter of 2019, and net income of $14.5 million, or $0.39 per diluted share, for the third quarter of 2018. The Company’s financial results include certain costs associated with its integration of First Evanston Bancorp, Inc. and its bank subsidiary First Bank & Trust, and its acquisition and integration of Oak Park River Forest Bankshares, Inc. (“Oak Park River Forest”) and its bank subsidiary Community Bank of Oak Park River Forest. Excluding these merger-related expenses, core system conversion expenses, and impairment charges on assets held for sale, adjusted net income1 was $16.2 million, or $0.41 per adjusted diluted share1, for the third quarter of 2019, compared with $15.9 million, or $0.41 per adjusted diluted share, for the second quarter of 2019, and $14.9 million, or $0.40 per adjusted diluted share, for the third quarter of 2018. A reconciliation of adjusted net income and adjusted diluted earnings per share to net income and diluted earnings per share, respectively, according to accounting principles generally accepted in the United States of America (“GAAP”) is provided in the financial tables at the end of this release.

Alberto J. Paracchini, President and Chief Executive Officer of Byline, commented, “We executed well and had a strong quarter of revenue generation while successfully completing the system conversion and integration of our recent acquisition of Oak Park River Forest. We are seeing the initial benefits from this acquisition in helping to more effectively manage our deposit costs and expect to see additional synergies over the remainder of 2019. We continue to be optimistic about our opportunities to execute on our strategy in the coming years and further enhance the value of our franchise,” said Mr. Paracchini.

(1)

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

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,

 

 

December 31,

 

 

September 30,

 

 

September 30,

 

 

September 30,

 

(dollars in thousands)

 

2019

 

 

2019

 

 

2019

 

 

2018

 

 

2018

 

 

2019

 

 

2018

 

INTEREST AND DIVIDEND INCOME

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest and fees on loans and

leases

 

$

63,391

 

 

$

59,524

 

 

$

54,383

 

 

$

56,646

 

 

$

55,045

 

 

$

177,298

 

 

$

128,326

 

Interest on taxable securities

 

 

6,554

 

 

 

6,237

 

 

 

5,759

 

 

 

5,334

 

 

 

5,076

 

 

 

18,550

 

 

 

13,703

 

Interest on tax-exempt securities

 

 

486

 

 

 

428

 

 

 

343

 

 

 

355

 

 

 

337

 

 

 

1,257

 

 

 

740

 

Other interest and dividend

income

 

 

598

 

 

 

571

 

 

 

625

 

 

 

560

 

 

 

615

 

 

 

1,794

 

 

 

1,287

 

Total interest and dividend

income

 

 

71,029

 

 

 

66,760

 

 

 

61,110

 

 

 

62,895

 

 

 

61,073

 

 

 

198,899

 

 

 

144,056

 

INTEREST EXPENSE

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Deposits

 

 

9,618

 

 

 

9,306

 

 

 

8,076

 

 

 

7,115

 

 

 

5,971

 

 

 

27,000

 

 

 

12,214

 

Federal Home Loan Bank

advances

 

 

2,771

 

 

 

2,174

 

 

 

2,099

 

 

 

1,719

 

 

 

1,723

 

 

 

7,044

 

 

 

4,441

 

Subordinated debentures and

other borrowings

 

 

802

 

 

 

832

 

 

 

850

 

 

 

800

 

 

 

786

 

 

 

2,484

 

 

 

2,057

 

Total interest expense

 

 

13,191

 

 

 

12,312

 

 

 

11,025

 

 

 

9,634

 

 

 

8,480

 

 

 

36,528

 

 

 

18,712

 

Net interest income

 

$

57,838

 

 

$

54,448

 

 

$

50,085

 

 

$

53,261

 

 

$

52,593

 

 

$

162,371

 

 

$

125,344

 

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, 2019

 

 

June 30, 2019

 

(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

 

$

34,225

 

 

$

253

 

 

 

2.93

%

 

$

35,346

 

 

$

245

 

 

 

2.78

%

Loans and leases(1)

 

 

3,860,770

 

 

 

63,391

 

 

 

6.51

%

 

 

3,759,634

 

 

 

59,524

 

 

 

6.35

%

Taxable securities

 

 

996,750

 

 

 

6,899

 

 

 

2.75

%

 

 

975,693

 

 

 

6,563

 

 

 

2.70

%

Tax-exempt securities(2)

 

 

76,161

 

 

 

486

 

 

 

2.53

%

 

 

68,314

 

 

 

428

 

 

 

2.52

%

Total interest-earning assets

 

$

4,967,906

 

 

$

71,029

 

 

 

5.67

%

 

$

4,838,987

 

 

$

66,760

 

 

 

5.53

%

Allowance for loan and lease losses

 

 

(32,246

)

 

 

 

 

 

 

 

 

 

 

(28,203

)

 

 

 

 

 

 

 

 

All other assets

 

 

500,102

 

 

 

 

 

 

 

 

 

 

 

464,036

 

 

 

 

 

 

 

 

 

TOTAL ASSETS

 

$

5,435,762

 

 

 

 

 

 

 

 

 

 

$

5,274,820

 

 

 

 

 

 

 

 

 

LIABILITIES AND STOCKHOLDERS’

EQUITY

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Deposits

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest checking

 

$

358,185

 

 

$

524

 

 

 

0.58

%

 

$

333,725

 

 

$

452

 

 

 

0.54

%

Money market accounts

 

 

735,724

 

 

 

1,917

 

 

 

1.03

%

 

 

695,986

 

 

 

1,790

 

 

 

1.03

%

Savings

 

 

475,417

 

 

 

114

 

 

 

0.10

%

 

 

477,775

 

 

 

118

 

 

 

0.10

%

Time deposits

 

 

1,270,050

 

 

 

7,063

 

 

 

2.21

%

 

 

1,278,488

 

 

 

6,946

 

 

 

2.18

%

Total interest-bearing

deposits

 

 

2,839,376

 

 

 

9,618

 

 

 

1.34

%

 

 

2,785,974

 

 

 

9,306

 

 

 

1.34

%

Federal Home Loan Bank advances

 

 

530,055

 

 

 

2,771

 

 

 

2.07

%

 

 

426,446

 

 

 

2,174

 

 

 

2.04

%

Other borrowed funds

 

 

70,080

 

 

 

802

 

 

 

4.54

%

 

 

73,358

 

 

 

832

 

 

 

4.55

%

Total borrowings

 

 

600,135

 

 

 

3,573

 

 

 

2.36

%

 

 

499,804

 

 

 

3,006

 

 

 

2.41

%

Total interest-bearing liabilities

 

$

3,439,511

 

 

$

13,191

 

 

 

1.52

%

 

$

3,285,778

 

 

$

12,312

 

 

 

1.50

%

Non-interest-bearing demand deposits

 

 

1,223,556

 

 

 

 

 

 

 

 

 

 

 

1,254,173

 

 

 

 

 

 

 

 

 

Other liabilities

 

 

42,914

 

 

 

 

 

 

 

 

 

 

 

37,941

 

 

 

 

 

 

 

 

 

Total stockholders’ equity

 

 

729,781

 

 

 

 

 

 

 

 

 

 

 

696,928

 

 

 

 

 

 

 

 

 

TOTAL LIABILITIES AND

STOCKHOLDERS’ EQUITY

 

$

5,435,762

 

 

 

 

 

 

 

 

 

 

$

5,274,820

 

 

 

 

 

 

 

 

 

Net interest spread(3)

 

 

 

 

 

 

 

 

 

 

4.15

%

 

 

 

 

 

 

 

 

 

 

4.03

%

Net interest income

 

 

 

 

 

$

57,838

 

 

 

 

 

 

 

 

 

 

$

54,448

 

 

 

 

 

Net interest margin(4)

 

 

 

 

 

 

 

 

 

 

4.62

%

 

 

 

 

 

 

 

 

 

 

4.51

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net loan accretion impact on margin

 

 

 

 

 

$

7,703

 

 

 

0.62

%

 

 

 

 

 

$

4,868

 

 

 

0.40

%

(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.

The Company completed its acquisition of Oak Park River Forest in the second quarter of 2019. All references to this transaction in the following narrative are referred to as “the acquisition” or “our recent acquisition.”

Net interest income for the third quarter of 2019 was $57.8 million, an increase of $3.4 million, or 6.2%, from $54.4 million for the second quarter of 2019.

The increase in net interest income was primarily due to:

  • An increase of $3.9 million in interest and fees on loans and leases, primarily due to a $2.8 million increase in accretion income and loans added from the acquisition; and
  • An increase of $375,000 in interest income on securities, mainly due to additional purchases during the quarter.

Partially offset by:

  • An increase of $597,000 in interest expense on Federal Home Loan Bank advances, primarily due to an increase in average advances during the quarter; and
  • An increase of $312,000 in interest expense on deposits, primarily due to deposits assumed as a result of the acquisition and an increase in money market and interest checking accounts.

Net interest margin for the third quarter of 2019 was 4.62%, an increase of 11 basis points compared to 4.51% for the second quarter of 2019. Total net accretion income on acquired loans contributed 62 basis points to the net interest margin for the third quarter of 2019 compared to 40 basis points for the second quarter of 2019, an increase of 22 basis points. The net interest margin increase was primarily driven by increased loan and lease yields largely resulting from increased loan accretion income and higher U.S. government guaranteed loan originations during the quarter.

The average cost of total deposits was 0.94% for the third quarter of 2019, an increase of two basis points compared to the second quarter of 2019, primarily due to decreased average non-interest-bearing demand deposits and slightly increased costs on time deposits. Additionally, there was growth in average money market accounts of $39.7 million and average interest-bearing checking accounts of $24.5 million, partially offset by decreases in average non-interest-bearing demand deposits of $30.6 million, average time deposits of $8.4 million, and average savings accounts of $2.4 million.

Provision for Loan and Lease Losses

The provision for loan and lease losses was $5.9 million for the third quarter of 2019, a decrease of $460,000 compared to $6.4 million for the second quarter of 2019. The third quarter included allocations of $10.0 million for originated loans and leases, and releases of $4.0 million for acquired non-impaired loans and $59,000 for acquired impaired loans. The provision during the third quarter of 2019 for originated loans reflects growth in the loan portfolio, particularly the unguaranteed portion of government guaranteed loans. The release to the provision for acquired non-impaired loans is the result of migration of acquired loans to originated loans as they come up for renewal.

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,

 

 

December 31,

 

 

September 30,

 

 

September 30,

 

 

September 30,

 

(dollars in thousands)

 

2019

 

 

2019

 

 

2019

 

 

2018

 

 

2018

 

 

2019

 

 

2018

 

NON-INTEREST INCOME

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Fees and service charges on

deposits

 

$

1,612

 

 

$

1,441

 

 

$

1,770

 

 

$

1,852

 

 

$

1,825

 

 

$

4,823

 

 

$

4,593

 

Loan servicing revenue

 

 

2,692

 

 

 

2,630

 

 

 

2,539

 

 

 

2,667

 

 

 

2,622

 

 

 

7,861

 

 

 

7,605

 

Loan servicing asset revaluation

 

 

(1,610

)

 

 

(1,223

)

 

 

(1,261

)

 

 

(2,862

)

 

 

(2,446

)

 

 

(4,094

)

 

 

(6,407

)

ATM and interchange fees

 

 

973

 

 

 

945

 

 

 

717

 

 

 

1,010

 

 

 

1,540

 

 

 

2,635

 

 

 

3,303

 

Net gains on sales of securities

available-for-sale

 

 

178

 

 

 

973

 

 

 

 

 

 

160

 

 

 

 

 

 

1,151

 

 

 

4

 

Change in fair value of equity

securities, net

 

 

(15

)

 

 

551

 

 

 

499

 

 

 

 

 

 

 

 

 

1,035

 

 

 

 

Net gains on sales of loans

 

 

9,405

 

 

 

7,472

 

 

 

6,233

 

 

 

9,337

 

 

 

5,015

 

 

 

23,110

 

 

 

22,214

 

Wealth management and trust

income

 

 

653

 

 

 

626

 

 

 

595

 

 

 

679

 

 

 

674

 

 

 

1,874

 

 

 

866

 

Other non-interest income

 

 

918

 

 

 

768

 

 

 

896

 

 

 

1,447

 

 

 

1,672

 

 

 

2,582

 

 

 

4,058

 

Total non-interest income

 

$

14,806

 

 

$

14,183

 

 

$

11,988

 

 

$

14,290

 

 

$

10,902

 

 

$

40,977

 

 

$

36,236

 

Non-interest income for the third quarter of 2019 was $14.8 million, an increase of $623,000, or 4.4%, compared to $14.2 million for the second quarter of 2019.

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

  • An increase of $1.9 million in net gains on sales of loans, primarily due to an increase in government guaranteed loan sales and average premiums;
  • An increase of $171,000 in fees and service charges on deposits, primarily due to higher fee income from transactional business accounts; and
  • An increase of $150,000 in other non-interest income, primarily due to a gain on the sale of a former branch property from assets held for sale.

Partially offset by:

  • A decrease in net gains on sales of securities available-for-sale of $795,000, primarily due to reduced sales volume compared to the prior quarter in which $973,000 of net gains were recorded;
  • A decrease in the change in fair value of equity securities, net, of $566,000 due to a decrease in the fair value of the securities; and
  • An additional $387,000 in loan servicing asset revaluation, primarily due to the change in fair value of the servicing asset as a result of increased prepayment rates.

During the third quarter of 2019, the Company sold $93.3 million of U.S. government guaranteed loans compared to $75.2 million during the second quarter of 2019, contributing to the increase in net gains on sale of loans for the quarter. The increase in sales is primarily due to the timing of loans closed becoming fully funded and mix of loans sold. The third quarter of 2019 included sales of $14.4 million of USDA loans while the second quarter of 2019 included sales of $10.4 million.

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,

 

 

December 31,

 

 

September 30,

 

 

September 30,

 

 

September 30,

 

(dollars in thousands)

 

2019

 

 

2019

 

 

2019

 

 

2018

 

 

2018

 

 

2019

 

 

2018

 

NON-INTEREST EXPENSE

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Salaries and employee benefits

 

$

24,537

 

 

$

23,652

 

 

$

22,892

 

 

$

21,548

 

 

$

21,312

 

 

$

71,081

 

 

$

58,834

 

Occupancy expense, net

 

 

3,745

 

 

 

4,337

 

 

 

4,280

 

 

 

4,027

 

 

 

3,548

 

 

 

12,362

 

 

 

11,802

 

Equipment expense

 

 

767

 

 

 

732

 

 

 

669

 

 

 

641

 

 

 

617

 

 

 

2,168

 

 

 

1,778

 

Loan and lease related expenses

 

 

1,949

 

 

 

1,841

 

 

 

1,577

 

 

 

2,223

 

 

 

1,015

 

 

 

5,367

 

 

 

3,886

 

Legal, audit and other professional

fees

 

 

4,066

 

 

 

2,981

 

 

 

2,066

 

 

 

2,746

 

 

 

2,358

 

 

 

9,113

 

 

 

8,627

 

Data processing

 

 

4,062

 

 

 

3,849

 

 

 

3,144

 

 

 

2,846

 

 

 

2,724

 

 

 

11,055

 

 

 

15,396

 

Net loss (gain) recognized on other

real estate owned and other

related expenses

 

 

95

 

 

 

252

 

 

 

196

 

 

 

48

 

 

 

(284

)

 

 

543

 

 

 

187

 

Regulatory assessments

 

 

228

 

 

 

371

 

 

 

(59

)

 

 

462

 

 

 

675

 

 

 

540

 

 

 

1,282

 

Other intangible assets

amortization expense

 

 

2,003

 

 

 

1,959

 

 

 

1,773

 

 

 

1,834

 

 

 

1,898

 

 

 

5,735

 

 

 

3,795

 

Advertising and promotions

 

 

843

 

 

 

732

 

 

 

709

 

 

 

590

 

 

 

537

 

 

 

2,284

 

 

 

1,133

 

Telecommunications

 

 

474

 

 

 

537

 

 

 

464

 

 

 

391

 

 

 

435

 

 

 

1,475

 

 

 

1,319

 

Other non-interest expense

 

 

2,679

 

 

 

2,711

 

 

 

2,968

 

 

 

2,732

 

 

 

2,880

 

 

 

8,358

 

 

 

6,769

 

Total non-interest expense

 

$

45,448

 

 

$

43,954

 

 

$

40,679

 

 

$

40,088

 

 

$

37,715

 

 

$

130,081

 

 

$

114,808

 

Non-interest expense for the third quarter of 2019 was $45.4 million, an increase of $1.5 million, or 3.4%, from $44.0 million for the second quarter of 2019.

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

  • An increase of $1.1 million in legal, audit and other professional fees, primarily due to $1.5 million of non-recurring professional services costs;
  • An increase of $885,000 in salaries and employee benefits, primarily due to acquisition related salary and employee benefit costs, including retention expenses, and an increase in stock-based compensation costs, partially offset by a decrease in payroll taxes; and
  • An increase of $213,000 in data processing expense, primarily due to expenses associated with our successful Oak Park River Forest core system conversion.

Partially offset by:

  • A decrease of $592,000 in occupancy expense, net, primarily due to property tax payments. Additionally, as part of our continual strategic review of our branch network, four of our existing branches will be consolidated or repurposed for our customers in the first quarter of 2020;
  • A decrease of $157,000 in net loss (gain) recognized on other real estate owned and other related expenses, primarily due to decreased property write-downs and real estate tax accrual adjustments; and
  • A decrease of $143,000 in regulatory assessments, primarily due to an accrual adjustment resulting from the quarterly FDIC assessment

The Company’s efficiency ratio was 59.81% for the third quarter of 2019, compared with 61.19% for the second quarter of 2019. Excluding merger-related expenses, core system conversion expenses, and impairment charges on assets held for sale, the Company’s adjusted efficiency ratio1 was 58.17% for the third quarter of 2019, compared with 56.02% for the second quarter of 2019.

(1)

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

INCOME TAXES

The Company recorded income tax expense of $5.9 million during the third quarter of 2019, an effective tax rate of 27.9%, compared to $5.1 million during the second quarter of 2019, an effective tax rate of 27.8%.

STATEMENTS OF FINANCIAL CONDITION

Total assets were $5.4 billion at September 30, 2019, an increase of $47.0 million compared to $5.4 billion at June 30, 2019, and an increase of $520.9 million compared to $4.9 billion at September 30, 2018.

The current quarter increase was primarily due to:

  • An increase in securities of $62.9 million, primarily due to additional purchases of agency, mortgage-backed, municipal, and corporate securities during the quarter; and
  • An increase in due from counterparty of $12.8 million due to the timing of the settlement of loans sold at September 30, 2019.

Partially offset by:

  • A decrease in loans and leases of $32.1 million, primarily due to a decrease of $215.9 million in our acquired loan portfolio, partially offset by an increase of $183.9 million in our originated loan portfolio;
  • A decrease in loans held for sale of $11.3 million, primarily due to the timing of loan sales at September 30, 2019; and
  • A decrease in deferred tax assets, net of $2.3 million, primarily due to a decrease in deferred tax assets associated with unrealized losses on available-for-sale securities.

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

 

 

September 30, 2019

 

 

June 30, 2019

 

 

September 30, 2018

 

(dollars in thousands)

 

Amount

 

 

% of Total

 

 

Amount

 

 

% of Total

 

 

Amount

 

 

% of Total

 

Originated loans and leases

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Commercial real estate

 

$

772,559

 

 

 

20.2

%

 

$

721,230

 

 

 

18.7

%

 

$

619,767

 

 

 

17.9

%

Residential real estate

 

 

497,839

 

 

 

13.0

%

 

 

501,038

 

 

 

13.0

%

 

 

445,717

 

 

 

12.9

%

Construction, land development, and

other land

 

 

236,780

 

 

 

6.2

%

 

 

196,656

 

 

 

5.1

%

 

 

140,391

 

 

 

4.1

%

Commercial and industrial

 

 

1,096,400

 

 

 

28.6

%

 

 

992,313

 

 

 

25.7

%

 

 

696,750

 

 

 

20.2

%

Installment and other

 

 

7,818

 

 

 

0.2

%

 

 

10,937

 

 

 

0.3

%

 

 

7,729

 

 

 

0.2

%

Leasing financing receivables

 

 

156,758

 

 

 

4.1

%

 

 

162,119

 

 

 

4.1

%

 

 

155,825

 

 

 

4.5

%

Total originated loans and leases

 

$

2,768,154

 

 

 

72.3

%

 

$

2,584,293

 

 

 

66.9

%

 

$

2,066,179

 

 

 

59.8

%

Acquired impaired loans

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Commercial real estate

 

$

142,435

 

 

 

3.7

%

 

$

151,127

 

 

 

3.9

%

 

$

154,108

 

 

 

4.5

%

Residential real estate

 

 

109,409

 

 

 

2.9

%

 

 

118,534

 

 

 

3.1

%

 

 

120,963

 

 

 

3.5

%

Construction, land development, and

other land

 

 

4,562

 

 

 

0.1

%

 

 

4,220

 

 

 

0.1

%

 

 

4,203

 

 

 

0.1

%

Commercial and industrial

 

 

18,349

 

 

 

0.5

%

 

 

20,370

 

 

 

0.5

%

 

 

14,436

 

 

 

0.4

%

Installment and other

 

 

267

 

 

 

0.0

%

 

 

300

 

 

 

0.0

%

 

 

458

 

 

 

0.0

%

Total acquired impaired loans

 

$

275,022

 

 

 

7.2

%

 

$

294,551

 

 

 

7.6

%

 

$

294,168

 

 

 

8.5

%

Acquired non-impaired loans and leases

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Commercial real estate

 

$

391,294

 

 

 

10.2

%

 

$

439,182

 

 

 

11.4

%

 

$

498,329

 

 

 

14.4

%

Residential real estate

 

 

141,855

 

 

 

3.7

%

 

 

158,190

 

 

 

4.1

%

 

 

138,516

 

 

 

4.0

%

Construction, land development, and

other land

 

 

39,657

 

 

 

1.0

%

 

 

51,072

 

 

 

1.3

%

 

 

37,111

 

 

 

1.1

%

Commercial and industrial

 

 

187,413

 

 

 

4.9

%

 

 

307,887

 

 

 

8.0

%

 

 

384,260

 

 

 

11.1

%

Installment and other

 

 

1,269

 

 

 

0.0

%

 

 

1,672

 

 

 

0.0

%

 

 

4,007

 

 

 

0.1

%

Leasing financing receivables

 

 

26,426

 

 

 

0.7

%

 

 

26,301

 

 

 

0.7

%

 

 

33,232

 

 

 

1.0

%

Total acquired non-impaired loans

and leases

 

$

787,914

 

 

 

20.5

%

 

$

984,304

 

 

 

25.5

%

 

$

1,095,455

 

 

 

31.7

%

Total loans and leases

 

$

3,831,090

 

 

 

100.0

%

 

$

3,863,148

 

 

 

100.0

%

 

$

3,455,802

 

 

 

100.0

%

Allowance for loan and lease losses

 

 

(31,585

)

 

 

 

 

 

 

(31,132

)

 

 

 

 

 

 

(23,424

)

 

 

 

 

Total loans and leases, net of allowance for

loan and lease losses

 

$

3,799,505

 

 

 

 

 

 

$

3,832,016

 

 

 

 

 

 

$

3,432,378

 

 

 

 

 

ASSET QUALITY

Non-Performing Assets

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

 

 

September 30,

 

 

June 30,

 

 

March 31,

 

 

December 31,

 

 

September 30,

 

(dollars in thousands)

 

2019

 

 

2019

 

 

2019

 

 

2018

 

 

2018

 

Non-performing assets:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Non-accrual loans and leases

 

$

39,529

 

 

$

34,027

 

 

$

28,539

 

 

$

25,834

 

 

$

28,643

 

Past due loans and leases 90 days or more

and still accruing interest

 

 

 

 

 

996

 

 

 

 

 

 

 

 

 

291

 

Accruing troubled debt restructured loans

 

 

2,204

 

 

 

1,529

 

 

 

1,921

 

 

 

1,813

 

 

 

1,230

 

Total non-performing loans and leases

 

 

41,733

 

 

 

36,552

 

 

 

30,460

 

 

 

27,647

 

 

 

30,164

 

Other real estate owned

 

 

8,531

 

 

 

8,070

 

 

 

4,799

 

 

 

5,314

 

 

 

4,891

 

Total non-performing assets

 

$

50,264

 

 

$

44,622

 

 

$

35,259

 

 

$

32,961

 

 

$

35,055

 

Total non-performing loans and leases as a

percentage of total loans and leases

 

 

1.09

%

 

 

0.95

%

 

 

0.85

%

 

 

0.79

%

 

 

0.87

%

Total non-performing assets as a percentage

of total assets

 

 

0.92

%

 

 

0.83

%

 

 

0.70

%

 

 

0.67

%

 

 

0.71

%

Allowance for loan and lease losses as a

percentage of non-performing loans and

leases

 

 

75.68

%

 

 

85.17

%

 

 

88.99

%

 

 

91.15

%

 

 

77.65

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Non-performing assets guaranteed by

U.S. government:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Non-accrual loans guaranteed

 

$

4,167

 

 

$

4,723

 

 

$

5,070

 

 

$

4,245

 

 

$

6,830

 

Past due loans 90 days or more and still

accruing interest guaranteed

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Accruing troubled debt restructured loans

guaranteed

 

 

 

 

 

 

 

 

 

 

 

381

 

 

 

431

 

Total non-performing loans guaranteed

 

 

4,167

 

 

 

4,723

 

 

 

5,070

 

 

 

4,626

 

 

 

7,261

 

Other real estate owned guaranteed

 

 

2,029

 

 

 

1,539

 

 

 

 

 

 

 

 

 

 

Total non-performing assets guaranteed

 

$

6,196

 

 

$

6,262

 

 

$

5,070

 

 

$

4,626

 

 

$

7,261

 

Total non-performing loans and leases

not guaranteed as a percentage of total

loans and leases

 

 

0.98

%

 

 

0.82

%

 

 

0.71

%

 

 

0.66

%

 

 

0.66

%

Total non-performing assets not guaranteed

as a percentage of total assets

 

 

0.81

%

 

 

0.71

%

 

 

0.60

%

 

 

0.57

%

 

 

0.57

%

Variances in non-performing assets:

  • Non-performing loans and leases were $41.7 million at September 30, 2019, an increase of $5.1 million from $36.6 million at June 30, 2019, primarily due to the downgrades of a commercial relationship and a U.S. government guaranteed relationship; and
  • Other real estate owned was $8.5 million at September 30, 2019, an increase of $461,000 from $8.1 million at June 30, 2019, due to properties added from the U.S. government guaranteed portfolio. The government guaranteed portion of other real estate owned was $2.0 million at September 30, 2019.

Non-performing assets included $6.2 million of U.S. government guaranteed balances at September 30, 2019 and $6.3 million at June 30, 2019, a decrease of $66,000, primarily due to resolutions in the U.S. government guaranteed portfolio, offset by the default of a relationship.

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,

 

 

December 31,

 

 

September 30,

 

 

September 30,

 

 

September 30,

 

(dollars in thousands)

 

2019

 

 

2019

 

 

2019

 

 

2018

 

 

2018

 

 

2019

 

 

2018

 

Allowance for loan and lease losses,

beginning of period

 

$

31,132

 

 

$

27,106

 

 

$

25,201

 

 

$

23,424

 

 

$

19,687

 

 

$

25,201

 

 

$

16,706

 

Provision for loan and lease losses

 

 

5,931

 

 

 

6,391

 

 

 

3,999

 

 

 

3,882

 

 

 

5,842

 

 

 

16,321

 

 

 

14,913

 

Net charge-offs of loans and leases

 

 

(5,478

)

 

 

(2,365

)

 

 

(2,094

)

 

 

(2,105

)

 

 

(2,105

)

 

 

(9,937

)

 

 

(8,195

)

Allowance for loan and lease losses,

end of period

 

$

31,585

 

 

$

31,132

 

 

$

27,106

 

 

$

25,201

 

 

$

23,424

 

 

$

31,585

 

 

$

23,424

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Allowance for loan and lease losses

to period end total loans and

leases held for investment

 

 

0.82

%

 

 

0.81

%

 

 

0.76

%

 

 

0.72

%

 

 

0.68

%

 

 

0.82

%

 

 

0.68

%

Net charge-offs (annualized) to

average loans and leases

outstanding during the period

 

 

0.56

%

 

 

0.25

%

 

 

0.24

%

 

 

0.24

%

 

 

0.25

%

 

 

0.36

%

 

 

0.40

%

Provision for loan and lease losses to

net charge-offs during the period

 

1.08x

 

 

2.70x

 

 

1.91x

 

 

1.84x

 

 

2.78x

 

 

1.64x

 

 

1.82x

 

The allowance for loan and lease losses as a percentage of total loans and leases held for investment increased to 0.82% at September 30, 2019, compared to 0.81% at June 30, 2019 and 0.68% at September 30, 2018.

Net Charge-Offs

Net charge-offs during the third quarter of 2019 were $5.5 million, or 0.56% of average loans and leases, on an annualized basis, an increase of $3.1 million compared to $2.4 million, or 0.25% of average loans and leases, during the second quarter of 2019, and an increase from $2.1 million, or 0.25%, for the comparable quarter one year ago.

The net charge-offs during the quarter were primarily attributed to the unguaranteed portion of U.S. government guaranteed loans. Net charge-offs for the third quarter of 2019 included $4.8 million in the unguaranteed portion of U.S. government guaranteed loans, while net charge-offs for the second quarter of 2019 included $2.3 million and third quarter of 2018 included $1.5 million in the unguaranteed portion of U.S. government guaranteed loans.

Deposits and Other Liabilities

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

 

 

September 30,

 

 

June 30,

 

 

March 31,

 

 

December 31,

 

 

September 30,

 

(dollars in thousands)

 

2019

 

 

2019

 

 

2019

 

 

2018

 

 

2018

 

Non-interest-bearing demand deposits

 

$

1,221,431

 

 

$

1,240,375

 

 

$

1,163,255

 

 

$

1,192,873

 

 

$

1,175,222

 

Interest-bearing checking accounts

 

 

372,049

 

 

 

345,081

 

 

 

305,393

 

 

 

296,339

 

 

 

317,145

 

Money market demand accounts

 

 

745,154

 

 

 

728,954

 

 

 

611,634

 

 

 

640,401

 

 

 

661,271

 

Other savings

 

 

471,878

 

 

 

480,756

 

 

 

468,524

 

 

 

476,418

 

 

 

476,879

 

Time deposits (below $250,000)

 

 

966,866

 

 

 

980,162

 

 

 

967,999

 

 

 

911,603

 

 

 

916,014

 

Time deposits ($250,000 and above)

 

 

302,936

 

 

 

284,915

 

 

 

291,711

 

 

 

232,282

 

 

 

194,236

 

Total deposits

 

$

4,080,314

 

 

$

4,060,243

 

 

$

3,808,516

 

 

$

3,749,916

 

 

$

3,740,767

 

Total deposits were $4.1 billion at September 30, 2019, an increase of $20.1 million compared to June 30, 2019, primarily due to increases in interest-bearing deposits excluding time deposits. Non-interest-bearing deposits to total deposits slightly decreased from 30.5% at June 30, 2019 to 29.9% at September 30, 2019.

The increase in the current quarter was primarily due to:

  • An increase in interest-bearing checking deposits of $27.0 million, from $345.1 million at June 30, 2019 to $372.0 million at September 30, 2019, primarily driven by NOW business accounts; and
  • An increase in money market demand deposits of $16.2 million, from $729.0 million at June 30, 2019 to $745.2 million at September 30, 2019, primarily driven by business accounts.

Partially offset by:

  • A decrease in non-interest-bearing demand deposits of $18.9 million, to $1.2 billion at September 30, 2019, primarily driven by decreases in business accounts and escrow deposits due to real estate tax payments; and
  • A decrease in other savings of $8.9 million, from $480.8 million at June 30, 2019 to $471.9 million at September 30, 2019, primarily driven by personal savings accounts.

Total borrowings and other liabilities were $622.1 million at September 30, 2019, an increase of $8.8 million from $613.3 million at June 30, 2019, primarily due to an increase in FHLB advances and an increase in accrued expenses and other liabilities.

Stockholders’ Equity

Total stockholders’ equity was $735.9 million at September 30, 2019, an increase of $18.2 million from $717.7 million at June 30, 2019. The increase was primarily due to net income generated during the quarter. Stockholders’ equity increased $106.0 million from $629.9 million at September 30, 2018. The increase was primarily due to net income generated during the year and the stock consideration issued in connection with the acquisition.

The following table presents the actual regulatory capital dollar amounts and ratios of the Company and Byline Bank as of September 30, 2019:

 

 

Actual

 

 

Minimum Capital

Required

 

 

Required to be

Considered

Well Capitalized

 

September 30, 2019

 

Amount

 

 

Ratio

 

 

Amount

 

 

Ratio

 

 

Amount

 

 

Ratio

 

Total capital to risk weighted assets:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Company

 

$

615,656

 

 

 

14.19

%

 

$

347,079

 

 

 

8.00

%

 

N/A

 

 

N/A

 

Bank

 

 

594,885

 

 

 

13.72

%

 

 

346,762

 

 

 

8.00

%

 

$

433,453

 

 

 

10.00

%

Tier 1 capital to risk weighted assets:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Company

 

$

582,754

 

 

 

13.43

%

 

$

260,309

 

 

 

6.00

%

 

N/A

 

 

N/A

 

Bank

 

 

561,953

 

 

 

12.96

%

 

 

260,072

 

 

 

6.00

%

 

$

346,762

 

 

 

8.00

%

Common Equity Tier 1 (CET1) to

risk weighted assets:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Company

 

$

525,816

 

 

 

12.12

%

 

$

195,232

 

 

 

4.50

%

 

N/A

 

 

N/A

 

Bank

 

 

561,953

 

 

 

12.96

%

 

 

195,054

 

 

 

4.50

%

 

$

281,744

 

 

 

6.50

%

Tier 1 capital to average assets:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Company

 

$

582,754

 

 

 

11.14

%

 

$

209,331

 

 

 

4.00

%

 

N/A

 

 

N/A

 

Bank

 

 

561,953

 

 

 

10.74

%

 

 

209,242

 

 

 

4.00

%

 

$

261,552

 

 

 

5.00

%

Capital ratios for the period presented are based on the Basel III regulatory capital framework as applied to the Company’s current business and operations, and are subject to, among other things, completion and filing of the Company’s regulatory reports and ongoing regulatory review and implementation guidance.

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 25, 2019 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 (877) 512-8755. A recorded replay can be accessed through November 9, 2019 by dialing (877) 344-7529; passcode: 10135549.

A slide presentation relating to the third quarter 2019 results will be accessible prior to the scheduled conference call. The slide presentation and webcast of the conference call can be accessed on the News and Events 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 $5.4 billion in assets and operates more than 60 full service branch locations throughout the Chicago and Milwaukee metropolitan areas. Byline Bank offers a broad range of commercial and retail banking products and services including small ticket equipment leasing solutions and is one of the top five Small Business Administration lenders in the United States.

Non-GAAP Financial Measures

This release contains certain financial information determined by methods other than in accordance with accounting principles generally accepted in the United States of America (“GAAP”). These measures include adjusted net income, adjusted diluted earnings per share, adjusted efficiency ratio, adjusted non-interest expense to average assets, non-interest income to total revenues, adjusted return on average stockholders’ equity, adjusted return on average assets, pre-tax pre-provision return on average assets, adjusted pre-tax pre-provision return on average assets, tangible book value per common share, tangible common equity to tangible assets, return on average tangible common stockholders' equity, and adjusted return on average tangible common stockholders' equity. Management believes that these non-GAAP financial measures provide useful information to management and investors that is supplementary to the Company’s financial condition, results of operations and cash flows computed in accordance with GAAP; however, management acknowledges that our non-GAAP financial measures have a number of limitations. As such, these disclosures should not be viewed as a substitute for results determined in accordance with GAAP financial measures that we and other companies use. Management also uses these measures for peer comparison. See “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. Additionally, please refer to the Company’s Annual Report on Form 10-K for the detailed definitions of these non-GAAP financial measures.

Forward-Looking Statements

This communication contains forward-looking statements within the meaning of the U.S. federal securities laws. Forward-looking statements include, without limitation, statements concerning plans, estimates, calculations, forecasts and projections with respect to the anticipated future performance of the Company. These statements are often, but not always, made through the use of words or phrases such as ‘‘may’’, ‘‘might’’, ‘‘should’’, ‘‘could’’, ‘‘predict’’, ‘‘potential’’, ‘‘believe’’, ‘‘expect’’, ‘‘continue’’, ‘‘will’’, ‘‘anticipate’’, ‘‘seek’’, ‘‘estimate’’, ‘‘intend’’, ‘‘plan’’, ‘‘projection’’, ‘‘would’’, ‘‘annualized’’, “target” and ‘‘outlook’’, or the negative version of those words or other comparable words or phrases of a future or forward-looking nature. Forward-looking statements involve estimates and known and unknown risks, and reflect various assumptions and involve elements of subjective judgement and analysis, which may or may not prove to be correct, and which are subject to uncertainties and contingencies outside the control of Byline and its respective affiliates, directors, employees and other representatives, which could cause actual results to differ materially from those presented in this communication. No representations, warranties or guarantees are or will be made by Byline as to the reliability, accuracy or completeness of any forward-looking statements contained in this communication or that such forward-looking statements are or will remain based on reasonable assumptions. You should not place undue reliance on any forward-looking statements contained in this communication.

Certain risks and important factors that could affect Byline’s future results are identified in its Annual Report on Form 10-K and other reports filed with the Securities and Exchange Commission, including among other things under the heading “Risk Factors” in such Annual Report on Form 10-K. Any forward-looking statement speaks only as of the date on which it is made, and Byline undertakes no obligation to update any forward-looking statement, whether to reflect events or circumstances after the date on which the statement is made, to reflect new information or the occurrence of unanticipated events, or otherwise unless required under the federal securities laws.

BYLINE BANCORP, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION (unaudited)

 

 

September 30,

 

 

June 30,

 

 

March 31,

 

 

December 31,

 

 

September 30,

 

(dollars in thousands)

 

2019

 

 

2019

 

 

2019

 

 

2018

 

 

2018

 

ASSETS

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cash and due from banks

 

$

75,275

 

 

$

57,513

 

 

$

50,026

 

 

$

30,190

 

 

$

25,162

 

Interest bearing deposits with other banks

 

 

33,564

 

 

 

31,802

 

 

 

31,971

 

 

 

91,670

 

 

 

119,594

 

Cash and cash equivalents

 

 

108,839

 

 

 

89,315

 

 

 

81,997

 

 

 

121,860

 

 

 

144,756

 

Equity and other securities, at fair value

 

 

7,648

 

 

 

7,662

 

 

 

7,216

 

 

 

 

 

 

 

Securities available-for-sale, at fair value

 

 

1,031,933

 

 

 

969,029

 

 

 

964,553

 

 

 

817,656

 

 

 

795,408

 

Securities held-to-maturity, at amortized cost

 

 

4,417

 

 

 

4,421

 

 

 

4,425

 

 

 

99,266

 

 

 

102,683

 

Restricted stock, at cost

 

 

24,331

 

 

 

22,937

 

 

 

19,202

 

 

 

19,202

 

 

 

19,202

 

Loans held for sale

 

 

7,176

 

 

 

18,473

 

 

 

510

 

 

 

19,827

 

 

 

8,737

 

Loans and leases:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Loans and leases

 

 

3,831,090

 

 

 

3,863,148

 

 

 

3,567,566

 

 

 

3,501,626

 

 

 

3,455,802

 

Allowance for loan and lease losses

 

 

(31,585

)

 

 

(31,132

)

 

 

(27,106

)

 

 

(25,201

)

 

 

(23,424

)

Net loans and leases

 

 

3,799,505

 

 

 

3,832,016

 

 

 

3,540,460

 

 

 

3,476,425

 

 

 

3,432,378

 

Servicing assets, at fair value

 

 

19,939

 

 

 

19,760

 

 

 

19,534

 

 

 

19,693

 

 

 

20,674

 

Accrued interest receivable

 

 

13,013

 

 

 

12,913

 

 

 

11,974

 

 

 

10,863

 

 

 

11,331

 

Premises and equipment, net

 

 

96,006

 

 

 

96,588

 

 

 

97,069

 

 

 

97,680

 

 

 

106,948

 

Assets held for sale

 

 

15,472

 

 

 

16,329

 

 

 

13,596

 

 

 

14,489

 

 

 

8,343

 

Other real estate owned, net

 

 

8,531

 

 

 

8,070

 

 

 

4,799

 

 

 

5,314

 

 

 

4,891

 

Goodwill

 

 

145,638

 

 

 

145,638

 

 

 

128,177

 

 

 

128,177

 

 

 

127,536

 

Other intangible assets, net

 

 

33,905

 

 

 

35,908

 

 

 

31,646

 

 

 

33,419

 

 

 

35,248

 

Bank-owned life insurance

 

 

9,699

 

 

 

9,634

 

 

 

6,087

 

 

 

5,961

 

 

 

5,923

 

Deferred tax assets, net

 

 

33,388

 

 

 

35,737

 

 

 

30,534

 

 

 

35,643

 

 

 

42,287

 

Due from counterparty

 

 

47,045

 

 

 

34,226

 

 

 

20,691

 

 

 

5,338

 

 

 

14,484

 

Other assets

 

 

31,793

 

 

 

32,580

 

 

 

27,455

 

 

 

31,761

 

 

 

36,580

 

Total assets

 

$

5,438,278

 

 

$

5,391,236

 

 

$

5,009,925

 

 

$

4,942,574

 

 

$

4,917,409

 

LIABILITIES AND STOCKHOLDERS’ EQUITY

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

LIABILITIES

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Non-interest-bearing demand deposits

 

$

1,221,431

 

 

$

1,240,375

 

 

$

1,163,255

 

 

$

1,192,873

 

 

$

1,175,222

 

Interest-bearing deposits:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

NOW, savings accounts, and money

market accounts

 

 

1,589,081

 

 

 

1,554,791

 

 

 

1,385,551

 

 

 

1,413,158

 

 

 

1,455,295

 

Time deposits

 

 

1,269,802

 

 

 

1,265,077

 

 

 

1,259,710

 

 

 

1,143,885

 

 

 

1,110,250

 

Total deposits

 

 

4,080,314

 

 

 

4,060,243

 

 

 

3,808,516

 

 

 

3,749,916

 

 

 

3,740,767

 

Accrued interest payable

 

 

4,778

 

 

 

4,522

 

 

 

4,390

 

 

 

3,484

 

 

 

2,971

 

Line of credit

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Federal Home Loan Bank advances

 

 

506,000

 

 

 

500,000

 

 

 

425,000

 

 

 

425,000

 

 

 

425,000

 

Securities sold under agreements to

repurchase

 

 

32,290

 

 

 

32,885

 

 

 

34,369

 

 

 

34,166

 

 

 

24,446

 

Junior subordinated debentures issued to

capital trusts, net

 

 

37,207

 

 

 

37,059

 

 

 

36,912

 

 

 

36,768

 

 

 

36,615

 

Accrued expenses and other liabilities

 

 

41,823

 

 

 

38,852

 

 

 

31,989

 

 

 

42,568

 

 

 

57,749

 

Total liabilities

 

 

4,702,412

 

 

 

4,673,561

 

 

 

4,341,176

 

 

 

4,291,902

 

 

 

4,287,548

 

STOCKHOLDERS’ EQUITY

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Preferred stock

 

 

10,438

 

 

 

10,438

 

 

 

10,438

 

 

 

10,438

 

 

 

10,438

 

Common stock

 

 

378

 

 

 

378

 

 

 

362

 

 

 

361

 

 

 

361

 

Additional paid-in capital

 

 

579,564

 

 

 

578,828

 

 

 

548,005

 

 

 

546,849

 

 

 

545,827

 

Retained earnings

 

 

144,525

 

 

 

129,379

 

 

 

116,363

 

 

 

102,522

 

 

 

85,597

 

Accumulated other comprehensive income

(loss), net of tax

 

 

961

 

 

 

(1,348

)

 

 

(6,419

)

 

 

(9,498

)

 

 

(12,362

)

Total stockholders’ equity

 

 

735,866

 

 

 

717,675

 

 

 

668,749

 

 

 

650,672

 

 

 

629,861

 

Total liabilities and stockholders’

equity

 

$

5,438,278

 

 

$

5,391,236

 

 

$

5,009,925

 

 

$

4,942,574

 

 

$

4,917,409

 

BYLINE BANCORP, INC. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF OPERATIONS (unaudited)

 

 

Three Months Ended

 

 

Nine Months Ended

 

(dollars in thousands, except share and

 

September 30,

 

 

June 30,

 

 

March 31,

 

 

December 31,

 

 

September 30,

 

 

September 30,

 

 

September 30,

 

per share data)

 

2019

 

 

2019

 

 

2019

 

 

2018

 

 

2018

 

 

2019

 

 

2018

 

INTEREST AND DIVIDEND INCOME

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest and fees on loans and leases

 

$

63,391

 

 

$

59,524

 

 

$

54,383

 

 

$

56,646

 

 

$

55,045

 

 

$

177,298

 

 

$

128,326

 

Interest on taxable securities

 

 

6,554

 

 

 

6,237

 

 

 

5,759

 

 

 

5,334

 

 

 

5,076

 

 

 

18,550

 

 

 

13,703

 

Interest on tax-exempt securities

 

 

486

 

 

 

428

 

 

 

343

 

 

 

355

 

 

 

337

 

 

 

1,257

 

 

 

740

 

Other interest and dividend income

 

 

598

 

 

 

571

 

 

 

625

 

 

 

560

 

 

 

615

 

 

 

1,794

 

 

 

1,287

 

Total interest and dividend income

 

 

71,029

 

 

 

66,760

 

 

 

61,110

 

 

 

62,895

 

 

 

61,073

 

 

 

198,899

 

 

 

144,056

 

INTEREST EXPENSE

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Deposits

 

 

9,618

 

 

 

9,306

 

 

 

8,076

 

 

 

7,115

 

 

 

5,971

 

 

 

27,000

 

 

 

12,214

 

Federal Home Loan Bank advances

 

 

2,771

 

 

 

2,174

 

 

 

2,099

 

 

 

1,719

 

 

 

1,723

 

 

 

7,044

 

 

 

4,441

 

Subordinated debentures and other

borrowings

 

 

802

 

 

 

832

 

 

 

850

 

 

 

800

 

 

 

786

 

 

 

2,484

 

 

 

2,057

 

Total interest expense

 

 

13,191

 

 

 

12,312

 

 

 

11,025

 

 

 

9,634

 

 

 

8,480

 

 

 

36,528

 

 

 

18,712

 

Net interest income

 

 

57,838

 

 

 

54,448

 

 

 

50,085

 

 

 

53,261

 

 

 

52,593

 

 

 

162,371

 

 

 

125,344

 

PROVISION FOR LOAN AND LEASE LOSSES

 

 

5,931

 

 

 

6,391

 

 

 

3,999

 

 

 

3,882

 

 

 

5,842

 

 

 

16,321

 

 

 

14,913

 

Net interest income after provision

for loan and lease losses

 

 

51,907

 

 

 

48,057

 

 

 

46,086

 

 

 

49,379

 

 

 

46,751

 

 

 

146,050

 

 

 

110,431

 

NON-INTEREST INCOME

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Fees and service charges on deposits

 

 

1,612

 

 

 

1,441

 

 

 

1,770

 

 

 

1,852

 

 

 

1,825

 

 

 

4,823

 

 

 

4,593

 

Loan servicing revenue

 

 

2,692

 

 

 

2,630

 

 

 

2,539

 

 

 

2,667

 

 

 

2,622

 

 

 

7,861

 

 

 

7,605

 

Loan servicing asset revaluation

 

 

(1,610

)

 

 

(1,223

)

 

 

(1,261

)

 

 

(2,862

)

 

 

(2,446

)

 

 

(4,094

)

 

 

(6,407

)

ATM and interchange fees

 

 

973

 

 

 

945

 

 

 

717

 

 

 

1,010

 

 

 

1,540

 

 

 

2,635

 

 

 

3,303

 

Net gains on sales of securities

available-for-sale

 

 

178

 

 

 

973

 

 

 

 

 

 

160

 

 

 

 

 

 

1,151

 

 

 

4

 

Change in fair value of equity securities,

net

 

 

(15

)

 

 

551

 

 

 

499

 

 

 

 

 

 

 

 

 

1,035

 

 

 

 

Net gains on sales of loans

 

 

9,405

 

 

 

7,472

 

 

 

6,233

 

 

 

9,337

 

 

 

5,015

 

 

 

23,110

 

 

 

22,214

 

Wealth management and trust income

 

 

653

 

 

 

626

 

 

 

595

 

 

 

679

 

 

 

674

 

 

 

1,874

 

 

 

866

 

Other non-interest income

 

 

918

 

 

 

768

 

 

 

896

 

 

 

1,447

 

 

 

1,672

 

 

 

2,582

 

 

 

4,058

 

Total non-interest income

 

 

14,806

 

 

 

14,183

 

 

 

11,988

 

 

 

14,290

 

 

 

10,902

 

 

 

40,977

 

 

 

36,236

 

NON-INTEREST EXPENSE

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Salaries and employee benefits

 

 

24,537

 

 

 

23,652

 

 

 

22,892

 

 

 

21,548

 

 

 

21,312

 

 

 

71,081

 

 

 

58,834

 

Occupancy expense, net

 

 

3,745

 

 

 

4,337

 

 

 

4,280

 

 

 

4,027

 

 

 

3,548

 

 

 

12,362

 

 

 

11,802

 

Equipment expense

 

 

767

 

 

 

732

 

 

 

669

 

 

 

641

 

 

 

617

 

 

 

2,168

 

 

 

1,778

 

Loan and lease related expenses

 

 

1,949

 

 

 

1,841

 

 

 

1,577

 

 

 

2,223

 

 

 

1,015

 

 

 

5,367

 

 

 

3,886

 

Legal, audit and other professional fees

 

 

4,066

 

 

 

2,981

 

 

 

2,066

 

 

 

2,746

 

 

 

2,358

 

 

 

9,113

 

 

 

8,627

 

Data processing

 

 

4,062

 

 

 

3,849

 

 

 

3,144

 

 

 

2,846

 

 

 

2,724

 

 

 

11,055

 

 

 

15,396

 

Net loss (gain) recognized on other real

estate owned and other related

expenses

 

 

95

 

 

 

252

 

 

 

196

 

 

 

48

 

 

 

(284

)

 

 

543

 

 

 

187

 

Regulatory assessments

 

 

228

 

 

 

371

 

 

 

(59

)

 

 

462

 

 

 

675

 

 

 

540

 

 

 

1,282

 

Other intangible assets amortization

expense

 

 

2,003

 

 

 

1,959

 

 

 

1,773

 

 

 

1,834

 

 

 

1,898

 

 

 

5,735

 

 

 

3,795

 

Advertising and promotions

 

 

843

 

 

 

732

 

 

 

709

 

 

 

590

 

 

 

537

 

 

 

2,284

 

 

 

1,133

 

Telecommunications

 

 

474

 

 

 

537

 

 

 

464

 

 

 

391

 

 

 

435

 

 

 

1,475

 

 

 

1,319

 

Other non-interest expense

 

 

2,679

 

 

 

2,711

 

 

 

2,968

 

 

 

2,732

 

 

 

2,880

 

 

 

8,358

 

 

 

6,769

 

Total non-interest expense

 

 

45,448

 

 

 

43,954

 

 

 

40,679

 

 

 

40,088

 

 

 

37,715

 

 

 

130,081

 

 

 

114,808

 

INCOME BEFORE PROVISION FOR INCOME

TAXES

 

 

21,265

 

 

 

18,286

 

 

 

17,395

 

 

 

23,581

 

 

 

19,938

 

 

 

56,946

 

 

 

31,859

 

PROVISION FOR INCOME TAXES

 

 

5,923

 

 

 

5,075

 

 

 

4,798

 

 

 

6,460

 

 

 

5,402

 

 

 

15,796

 

 

 

7,787

 

NET INCOME

 

 

15,342

 

 

 

13,211

 

 

 

12,597

 

 

 

17,121

 

 

 

14,536

 

 

 

41,150

 

 

 

24,072

 

Dividends on preferred shares

 

 

196

 

 

 

195

 

 

 

196

 

 

 

196

 

 

 

196

 

 

 

587

 

 

 

587

 

INCOME AVAILABLE TO COMMON

STOCKHOLDERS

 

$

15,146

 

 

$

13,016

 

 

$

12,401

 

 

$

16,925

 

 

$

14,340

 

 

$

40,563

 

 

$

23,485

 

EARNINGS PER COMMON SHARE

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic

 

$

0.40

 

 

$

0.35

 

 

$

0.34

 

 

$

0.47

 

 

$

0.40

 

 

$

1.09

 

 

$

0.73

 

Diluted

 

$

0.39

 

 

$

0.34

 

 

$

0.34

 

 

$

0.46

 

 

$

0.39

 

 

$

1.07

 

 

$

0.71

 

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,

 

 

December 31,

 

 

September 30,

 

 

September 30,

 

 

September 30,

 

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

 

2019

 

 

2019

 

 

2019

 

 

2018

 

 

2018

 

 

2019

 

 

2018

 

Summary of Operations

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net interest income

 

$

57,838

 

 

$

54,448

 

 

$

50,085

 

 

$

53,261

 

 

$

52,593

 

 

$

162,371

 

 

$

125,344

 

Provision for loan and lease losses

 

 

5,931

 

 

 

6,391

 

 

 

3,999

 

 

 

3,882

 

 

 

5,842

 

 

 

16,321

 

 

 

14,913

 

Non-interest income

 

 

14,806

 

 

 

14,183

 

 

 

11,988

 

 

 

14,290

 

 

 

10,902

 

 

 

40,977

 

 

 

36,236

 

Non-interest expense

 

 

45,448

 

 

 

43,954

 

 

 

40,679

 

 

 

40,088

 

 

 

37,715

 

 

 

130,081

 

 

 

114,808

 

Income before provision for income taxes

 

 

21,265

 

 

 

18,286

 

 

 

17,395

 

 

 

23,581

 

 

 

19,938

 

 

 

56,946

 

 

 

31,859

 

Provision for income taxes

 

 

5,923

 

 

 

5,075

 

 

 

4,798

 

 

 

6,460

 

 

 

5,402

 

 

 

15,796

 

 

 

7,787

 

Net income

 

 

15,342

 

 

 

13,211

 

 

 

12,597

 

 

 

17,121

 

 

 

14,536

 

 

 

41,150

 

 

 

24,072

 

Dividends on preferred shares

 

 

196

 

 

 

195

 

 

 

196

 

 

 

196

 

 

 

196

 

 

 

587

 

 

 

587

 

Net income available to common stockholders

 

$

15,146

 

 

$

13,016

 

 

$

12,401

 

 

$

16,925

 

 

$

14,340

 

 

$

40,563

 

 

$

23,485

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Earnings per Common Share

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic earnings per common share

 

$

0.40

 

 

$

0.35

 

 

$

0.34

 

 

$

0.47

 

 

$

0.40

 

 

$

1.09

 

 

$

0.73

 

Diluted earnings per common share

 

$

0.39

 

 

$

0.34

 

 

$

0.34

 

 

$

0.46

 

 

$

0.39

 

 

$

1.07

 

 

$

0.71

 

Adjusted diluted earnings per common share(2)(3)(4)

 

$

0.41

 

 

$

0.41

 

 

$

0.38

 

 

$

0.49

 

 

$

0.40

 

 

$

1.20

 

 

$

0.93

 

Weighted average common shares outstanding (basic)

 

 

37,831,356

 

 

 

37,263,352

 

 

 

36,169,477

 

 

 

36,116,189

 

 

 

36,042,914

 

 

 

37,094,083

 

 

 

32,341,087

 

Weighted average common shares outstanding (diluted)

 

 

38,487,180

 

 

 

37,948,006

 

 

 

36,876,574

 

 

 

36,900,589

 

 

 

36,958,209

 

 

 

37,818,868

 

 

 

33,288,657

 

Common shares outstanding

 

 

38,169,126

 

 

 

38,115,219

 

 

 

36,398,144

 

 

 

36,343,239

 

 

 

36,279,600

 

 

 

38,169,126

 

 

 

36,279,600

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Key Ratios and Performance Metrics (annualized where

applicable)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net interest margin

 

 

4.62

%

 

 

4.51

%

 

 

4.43

%

 

 

4.69

%

 

 

4.73

%

 

 

4.52

%

 

 

4.56

%

Cost of deposits

 

 

0.94

%

 

 

0.92

%

 

 

0.87

%

 

 

0.75

%

 

 

0.64

%

 

 

0.91

%

 

 

0.54

%

Efficiency ratio(1)

 

 

59.81

%

 

 

61.19

%

 

 

62.68

%

 

 

56.63

%

 

 

56.41

%

 

 

61.15

%

 

 

68.70

%

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

 

 

58.17

%

 

 

56.02

%

 

 

59.55

%

 

 

54.76

%

 

 

55.62

%

 

 

57.87

%

 

 

61.73

%

Non-interest expense to average assets

 

 

3.32

%

 

 

3.34

%

 

 

3.32

%

 

 

3.25

%

 

 

3.11

%

 

 

3.33

%

 

 

3.82

%

Adjusted non-interest expense to average assets(2)(3)

 

 

3.23

%

 

 

3.07

%

 

 

3.17

%

 

 

3.15

%

 

 

3.07

%

 

 

3.16

%

 

 

3.45

%

Return on average stockholders' equity

 

 

8.34

%

 

 

7.60

%

 

 

7.75

%

 

 

10.61

%

 

 

9.22

%

 

 

7.91

%

 

 

6.01

%

Adjusted return on average stockholders' equity(2)(3)(4)

 

 

8.78

%

 

 

9.16

%

 

 

8.61

%

 

 

11.21

%

 

 

9.47

%

 

 

8.86

%

 

 

7.90

%

Return on average assets

 

 

1.12

%

 

 

1.00

%

 

 

1.03

%

 

 

1.39

%

 

 

1.20

%

 

 

1.05

%

 

 

0.80

%

Adjusted return on average assets(2)(3)(4)

 

 

1.18

%

 

 

1.21

%

 

 

1.14

%

 

 

1.47

%

 

 

1.23

%

 

 

1.18

%

 

 

1.05

%

Non-interest income to total revenues(2)

 

 

20.38

%

 

 

20.67

%

 

 

19.31

%

 

 

21.16

%

 

 

17.17

%

 

 

20.15

%

 

 

22.43

%

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

 

 

1.98

%

 

 

1.88

%

 

 

1.75

%

 

 

2.23

%

 

 

2.13

%

 

 

1.87

%

 

 

1.56

%

Adjusted pre-tax pre-provision return on average assets(2)(3)

 

 

2.07

%

 

 

2.15

%

 

 

1.91

%

 

 

2.33

%

 

 

2.17

%

 

 

2.04

%

 

 

1.93

%

Return on average tangible common stockholders' equity(2)

 

 

12.22

%

 

 

11.32

%

 

 

11.37

%

 

 

15.49

%

 

 

13.81

%

 

 

11.66

%

 

 

8.51

%

Adjusted return on average tangible common stockholders'

equity(2)(3)(4)

 

 

12.82

%

 

 

13.44

%

 

 

12.54

%

 

 

16.31

%

 

 

14.16

%

 

 

12.94

%

 

 

10.96

%

Non-interest-bearing deposits to total deposits

 

 

29.93

%

 

 

30.55

%

 

 

30.54

%

 

 

31.81

%

 

 

31.42

%

 

 

29.93

%

 

 

31.42

%

Loans and leases held for sale and loans and lease held for

investment to total deposits

 

 

94.07

%

 

 

95.60

%

 

 

93.69

%

 

 

93.91

%

 

 

92.62

%

 

 

94.07

%

 

 

92.62

%

Deposits to total liabilities

 

 

86.77

%

 

 

86.88

%

 

 

87.73

%

 

 

87.37

%

 

 

87.25

%

 

 

86.77

%

 

 

87.25

%

Deposits per branch

 

$

66,890

 

 

$

66,561

 

 

$

65,664

 

 

$

63,558

 

 

$

63,403

 

 

$

66,890

 

 

$

63,403

 

Tangible book value per common share(2)

 

$

14.30

 

 

$

13.79

 

 

$

13.70

 

 

$

13.17

 

 

$

12.59

 

 

$

14.30

 

 

$

12.59

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Asset Quality Ratios

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Non-performing loans and leases to total loans and leases

held for investment, net before ALLL

 

 

1.09

%

 

 

0.95

%

 

 

0.85

%

 

 

0.79

%

 

 

0.87

%

 

 

1.09

%

 

 

0.87

%

ALLL to total loans and leases held for investment, net

before ALLL

 

 

0.82

%

 

 

0.81

%

 

 

0.76

%

 

 

0.72

%

 

 

0.68

%

 

 

0.82

%

 

 

0.68

%

Net charge-offs to average total loans and leases held for

investment, net before ALLL

 

 

0.56

%

 

 

0.25

%

 

 

0.24

%

 

 

0.24

%

 

 

0.25

%

 

 

0.36

%

 

 

0.40

%

Acquisition accounting adjustments(5)

 

$

31,053

 

 

$

37,109

 

 

$

29,341

 

 

$

34,029

 

 

$

42,375

 

 

$

31,053

 

 

$

42,375

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Capital Ratios

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Common equity to total assets

 

 

13.34

%

 

 

13.12

%

 

 

13.14

%

 

 

12.95

%

 

 

12.60

%

 

 

13.34

%

 

 

12.60

%

Tangible common equity to tangible assets(2)

 

 

10.38

%

 

 

10.09

%

 

 

10.28

%

 

 

10.01

%

 

 

9.60

%

 

 

10.38

%

 

 

9.60

%

Leverage ratio

 

 

11.14

%

 

 

11.09

%

 

 

11.27

%

 

 

11.05

%

 

 

10.78

%

 

 

11.14

%

 

 

10.78

%

Common equity tier 1 capital ratio

 

 

12.12

%

 

 

11.65

%

 

 

12.14

%

 

 

11.85

%

 

 

11.26

%

 

 

12.12

%

 

 

11.26

%

Tier 1 capital ratio

 

 

13.43

%

 

 

12.96

%

 

 

13.57

%

 

 

13.30

%

 

 

12.71

%

 

 

13.43

%

 

 

12.71

%

Total capital ratio

 

 

14.19

%

 

 

13.71

%

 

 

14.28

%

 

 

13.99

%

 

 

13.37

%

 

 

14.19

%

 

 

13.37

%

(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)

Calculation excludes impairment charges, merger-related expenses, and core systems conversion expense.

(4)

Calculation excludes incremental income tax expense or benefit related to changes in corporate income tax rates and reversal of valuation allowance on net deferred tax assets.

(5)

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

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,

 

 

 

2019

 

 

2018

 

(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

 

$

34,225

 

 

$

253

 

 

 

2.93

%

 

$

107,555

 

 

$

368

 

 

 

1.36

%

Loans and leases(1)

 

 

3,860,770

 

 

 

63,391

 

 

 

6.51

%

 

 

3,387,569

 

 

 

55,045

 

 

 

6.45

%

Taxable securities

 

 

996,750

 

 

 

6,899

 

 

 

2.75

%

 

 

860,081

 

 

 

5,323

 

 

 

2.46

%

Tax-exempt securities(2)

 

 

76,161

 

 

 

486

 

 

 

2.53

%

 

 

55,656

 

 

 

337

 

 

 

2.40

%

Total interest-earning assets

 

$

4,967,906

 

 

$

71,029

 

 

 

5.67

%

 

$

4,410,861