Byline Bancorp, Inc. Reports Full Year and Fourth Quarter 2019 Financial Results

Full Year 2019 Highlights

  • Net income of $57.0 million, or $1.48 per diluted share
  • Return on average assets improved to 1.08% for 2019
  • Net interest margin of 4.47% for 2019
  • Efficiency ratio improved to 61.09% for 2019 compared to 65.15% for 2018
  • Originated loans and leases increased $597.9 million, or 26.7%, from December 31, 2018

Fourth Quarter 2019 Highlights

  • Net income of $15.9 million, or $0.41 per diluted share
  • Return on average assets of 1.16%
  • Net interest margin of 4.32%
  • Efficiency ratio of 60.93% for the fourth quarter of 2019
  • Originated loans and leases increased $67.5 million, or 2.4%, from September 30, 2019
  • Initiated cash dividend of $0.03 per share to common stockholders for the quarter and approved share repurchase program

CHICAGO--()--Byline Bancorp, Inc. (the “Company” or “Byline”)(NYSE: BY), the parent company of Byline Bank (the “Bank”), today reported net income of $15.9 million, or $0.41 per diluted share, for the fourth quarter of 2019, compared with net income of $15.3 million, or $0.39 per diluted share, for the third quarter of 2019, and net income of $17.1 million, or $0.46 per diluted share, for the fourth 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 $16.1 million, or $0.42 per adjusted diluted share1, for the fourth quarter of 2019, compared with $16.2 million, or $0.41 per adjusted diluted share, for the third quarter of 2019, and $18.1 million, or $0.49 per adjusted diluted share, for the fourth 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, “Our fourth quarter performance completed another strong year for the Byline franchise. In 2019, we completed another accretive acquisition with the addition of Oak Park River Forest Bankshares, capitalized on disruption in the Chicago marketplace to add significant new banking talent to our organization, and continued to attract new commercial clients to the Bank. As we moved through the year, we also made steady progress on improving our deposit mix and better managing our funding costs. Our improving profitability enabled us to initiate a cash dividend in the fourth quarter and deliver additional value to our shareholders. With the strong foundation we have built and our unique positioning in the Chicago market, we believe we have good opportunities to continue enhancing the value of our franchise in the coming years.”

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

 

 

Year Ended

 

 

December 31,

 

 

September 30,

 

 

June 30,

 

 

March 31,

 

 

December 31,

 

 

December 31,

 

 

December 31,

(dollars in thousands)

 

2019

 

 

2019

 

 

2019

 

 

2019

 

 

2018

 

 

2019

 

 

2018

INTEREST AND DIVIDEND INCOME

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest and fees on loans and

leases

 

$

58,203

 

 

$

63,391

 

 

$

59,524

 

 

$

54,383

 

 

$

56,646

 

 

$

235,501

 

 

$

184,972

Interest on taxable securities

 

 

6,683

 

 

 

6,554

 

 

 

6,237

 

 

 

5,759

 

 

 

5,334

 

 

 

25,233

 

 

 

19,037

Interest on tax-exempt securities

 

 

529

 

 

 

486

 

 

 

428

 

 

 

343

 

 

 

355

 

 

 

1,786

 

 

 

1,095

Other interest and dividend

income

 

 

500

 

 

 

598

 

 

 

571

 

 

 

625

 

 

 

560

 

 

 

2,294

 

 

 

1,847

Total interest and dividend

income

 

 

65,915

 

 

 

71,029

 

 

 

66,760

 

 

 

61,110

 

 

 

62,895

 

 

 

264,814

 

 

 

206,951

INTEREST EXPENSE

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Deposits

 

 

9,325

 

 

 

9,618

 

 

 

9,306

 

 

 

8,076

 

 

 

7,115

 

 

 

36,325

 

 

 

19,329

Federal Home Loan Bank

advances

 

 

1,917

 

 

 

2,771

 

 

 

2,174

 

 

 

2,099

 

 

 

1,719

 

 

 

8,961

 

 

 

6,160

Subordinated debentures and

other borrowings

 

 

759

 

 

 

802

 

 

 

832

 

 

 

850

 

 

 

800

 

 

 

3,243

 

 

 

2,857

Total interest expense

 

 

12,001

 

 

 

13,191

 

 

 

12,312

 

 

 

11,025

 

 

 

9,634

 

 

 

48,529

 

 

 

28,346

Net interest income

 

$

53,914

 

 

$

57,838

 

 

$

54,448

 

 

$

50,085

 

 

$

53,261

 

 

$

216,285

 

 

$

178,605

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

 

 

December 31, 2019

 

September 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

 

$

38,624

 

 

$

220

 

 

2.25

%

 

$

34,225

 

 

$

253

 

 

2.93

%

Loans and leases(1)

 

 

3,807,731

 

 

 

58,203

 

 

6.06

%

 

 

3,860,770

 

 

 

63,391

 

 

6.51

%

Taxable securities

 

 

1,025,975

 

 

 

6,963

 

 

2.69

%

 

 

996,750

 

 

 

6,899

 

 

2.75

%

Tax-exempt securities(2)

 

 

84,640

 

 

 

529

 

 

2.48

%

 

 

76,161

 

 

 

486

 

 

2.53

%

Total interest-earning assets

 

$

4,956,970

 

 

$

65,915

 

 

5.28

%

 

$

4,967,906

 

 

$

71,029

 

 

5.67

%

Allowance for loan and lease losses

 

 

(32,688

)

 

 

 

 

 

 

 

 

(32,246

)

 

 

 

 

 

 

All other assets

 

 

502,764

 

 

 

 

 

 

 

 

 

500,102

 

 

 

 

 

 

 

TOTAL ASSETS

 

$

5,427,046

 

 

 

 

 

 

 

 

$

5,435,762

 

 

 

 

 

 

 

LIABILITIES AND STOCKHOLDERS’ EQUITY

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Deposits

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest checking

 

$

399,065

 

 

$

612

 

 

0.61

%

 

$

358,185

 

 

$

524

 

 

0.58

%

Money market accounts

 

 

790,565

 

 

 

1,945

 

 

0.98

%

 

 

735,724

 

 

 

1,917

 

 

1.03

%

Savings

 

 

474,394

 

 

 

63

 

 

0.05

%

 

 

475,417

 

 

 

114

 

 

0.10

%

Time deposits

 

 

1,231,641

 

 

 

6,705

 

 

2.16

%

 

 

1,270,050

 

 

 

7,063

 

 

2.21

%

Total interest-bearing deposits

 

 

2,895,665

 

 

 

9,325

 

 

1.28

%

 

 

2,839,376

 

 

 

9,618

 

 

1.34

%

Federal Home Loan Bank advances

 

 

371,730

 

 

 

1,917

 

 

2.05

%

 

 

530,055

 

 

 

2,771

 

 

2.07

%

Other borrowed funds

 

 

80,039

 

 

 

759

 

 

3.76

%

 

 

70,080

 

 

 

802

 

 

4.54

%

Total borrowings

 

 

451,769

 

 

 

2,676

 

 

2.35

%

 

 

600,135

 

 

 

3,573

 

 

2.36

%

Total interest-bearing liabilities

 

$

3,347,434

 

 

$

12,001

 

 

1.42

%

 

$

3,439,511

 

 

$

13,191

 

 

1.52

%

Non-interest-bearing demand deposits

 

 

1,288,960

 

 

 

 

 

 

 

 

 

1,223,556

 

 

 

 

 

 

 

Other liabilities

 

 

44,907

 

 

 

 

 

 

 

 

 

42,914

 

 

 

 

 

 

 

Total stockholders’ equity

 

 

745,745

 

 

 

 

 

 

 

 

 

729,781

 

 

 

 

 

 

 

TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY

 

$

5,427,046

 

 

 

 

 

 

 

 

$

5,435,762

 

 

 

 

 

 

 

Net interest spread(3)

 

 

 

 

 

 

 

 

3.86

%

 

 

 

 

 

 

 

 

4.15

%

Net interest income

 

 

 

 

$

53,914

 

 

 

 

 

 

 

$

57,838

 

 

 

Net interest margin(4)

 

 

 

 

 

 

 

 

4.32

%

 

 

 

 

 

 

 

 

4.62

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net loan accretion impact on margin

 

 

 

 

$

5,418

 

 

0.43

%

 

 

 

 

$

7,703

 

 

0.62

%

(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.

Net interest income for the fourth quarter of 2019 was $53.9 million, a decrease of $3.9 million, or 6.8%, from $57.8 million for the third quarter of 2019.

The decrease in net interest income was primarily due to:

  • A decrease of $5.2 million in interest and fees on loans and leases, mainly due to a $2.3 million decrease in accretion income on acquired loans and lower average yields on loans as a result of decreases in short-term rates in September and October 2019.

Partially offset by:

  • A decrease of $854,000 in interest expense on Federal Home Loan Bank advances, mostly due to a decrease in average advances during the quarter as average lower-cost deposits grew; and
  • A decrease of $293,000 in interest expense on deposits, as a result of lower average time deposit balances and cost attributable to maturities of higher-rate time deposits.

Net interest margin for the fourth quarter of 2019 was 4.32%, a decrease of 30 basis points compared to 4.62% for the third quarter of 2019. Total net accretion income on acquired loans contributed 43 basis points to the net interest margin for the fourth quarter of 2019 compared to 62 basis points for the third quarter of 2019, a decrease of 19 basis points. The net interest margin decrease during the fourth quarter of 2019 was primarily driven by decreased loan and lease yields largely resulting from decreased loan accretion income and decreases in short-term rates.

The average cost of total deposits was 0.88% for the fourth quarter of 2019, a decrease of six basis points compared to the third quarter of 2019, mainly due to a favorable change in deposit mix and a lower average cost of time deposits. Average non-interest-bearing demand deposits, money market accounts, and interest-bearing checking accounts grew by $65.4 million, $54.8 million, and $40.9 million, respectively, while average time deposits decreased by $38.4 million.

Provision for Loan and Lease Losses

The provision for loan and lease losses was $4.4 million for the fourth quarter of 2019, a decrease of $1.5 million compared to $5.9 million for the third quarter of 2019. The fourth quarter included allocations of $3.2 million for originated loans and leases, $524,000 for acquired non-impaired loans, and $694,000 for acquired impaired loans. The provision during the fourth quarter of 2019 for originated loans reflects growth in that portfolio, particularly the unguaranteed portion of government guaranteed loans.

Non-interest Income

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

 

 

Three Months Ended

 

 

Year Ended

 

 

 

December 31,

 

 

September 30,

 

 

June 30,

 

 

March 31,

 

 

December 31,

 

 

December 31,

 

 

December 31,

 

(dollars in thousands)

 

2019

 

 

2019

 

 

2019

 

 

2019

 

 

2018

 

 

2019

 

 

2018

 

NON-INTEREST INCOME

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Fees and service charges on

deposits

 

$

1,635

 

 

$

1,612

 

 

$

1,441

 

 

$

1,770

 

 

$

1,852

 

 

$

6,458

 

 

$

6,445

 

Loan servicing revenue

 

 

2,834

 

 

 

2,692

 

 

 

2,630

 

 

 

2,539

 

 

 

2,667

 

 

 

10,695

 

 

 

10,272

 

Loan servicing asset revaluation

 

 

(2,545

)

 

 

(1,610

)

 

 

(1,223

)

 

 

(1,261

)

 

 

(2,862

)

 

 

(6,639

)

 

 

(9,269

)

ATM and interchange fees

 

 

1,150

 

 

 

973

 

 

 

945

 

 

 

717

 

 

 

1,010

 

 

 

3,785

 

 

 

4,313

 

Net gains on sales of securities

available-for-sale

 

 

 

 

 

178

 

 

 

973

 

 

 

 

 

 

160

 

 

 

1,151

 

 

 

164

 

Change in fair value of equity

securities, net

 

 

381

 

 

 

(15

)

 

 

551

 

 

 

499

 

 

 

 

 

 

1,416

 

 

 

 

Net gains on sales of loans

 

 

8,735

 

 

 

9,405

 

 

 

7,472

 

 

 

6,233

 

 

 

9,337

 

 

 

31,845

 

 

 

31,551

 

Wealth management and trust

income

 

 

704

 

 

 

653

 

 

 

626

 

 

 

595

 

 

 

679

 

 

 

2,578

 

 

 

1,545

 

Other non-interest income

 

 

1,622

 

 

 

918

 

 

 

768

 

 

 

896

 

 

 

1,447

 

 

 

4,204

 

 

 

5,505

 

Total non-interest income

 

$

14,516

 

 

$

14,806

 

 

$

14,183

 

 

$

11,988

 

 

$

14,290

 

 

$

55,493

 

 

$

50,526

 

Non-interest income for the fourth quarter of 2019 was $14.5 million, a decrease of $290,000, or 2.0%, compared to $14.8 million for the third quarter of 2019.

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

  • An increase of $935,000 in loan servicing asset revaluation, reflecting an unfavorable change in fair value of the servicing asset as a result of increased prepayments and discount rates; and
  • A decrease of $670,000 in net gains on sales of loans, mainly due to a decrease in average premium on sales of government guaranteed loans.

Partially offset by:

  • An increase of $704,000 in other non-interest income, mostly due to a favorable swap valuation adjustment and increased swap activity; and
  • An increase in the change in fair value of equity securities, net, of $396,000 due to an increase in the fair value of those securities.

During the fourth quarter of 2019, the Company sold $101.5 million of U.S. government guaranteed loans compared to $93.3 million during the third quarter of 2019. The increase in sales is principally due to the timing of loans closed becoming fully funded.

Non-interest Expense

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

 

 

Three Months Ended

 

 

Year Ended

 

 

December 31,

 

 

September 30,

 

 

June 30,

 

 

March 31,

 

 

December 31,

 

 

December 31,

 

 

December 31,

(dollars in thousands)

 

2019

 

 

2019

 

 

2019

 

 

2019

 

 

2018

 

 

2019

 

 

2018

NON-INTEREST EXPENSE

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Salaries and employee benefits

 

$

24,228

 

 

$

24,537

 

 

$

23,652

 

 

$

22,892

 

 

$

21,548

 

 

$

95,309

 

 

$

80,382

Occupancy expense, net

 

 

4,306

 

 

 

3,745

 

 

 

4,337

 

 

 

4,280

 

 

 

4,027

 

 

 

16,668

 

 

 

15,829

Equipment expense

 

 

935

 

 

 

767

 

 

 

732

 

 

 

669

 

 

 

641

 

 

 

3,103

 

 

 

2,419

Loan and lease related expenses

 

 

2,648

 

 

 

1,949

 

 

 

1,841

 

 

 

1,577

 

 

 

2,223

 

 

 

8,015

 

 

 

6,109

Legal, audit and other professional

fees

 

 

2,340

 

 

 

4,066

 

 

 

2,981

 

 

 

2,066

 

 

 

2,746

 

 

 

11,453

 

 

 

11,373

Data processing

 

 

2,678

 

 

 

4,062

 

 

 

3,849

 

 

 

3,144

 

 

 

2,846

 

 

 

13,733

 

 

 

18,242

Net loss (gain) recognized on other

real estate owned and other

related expenses

 

 

122

 

 

 

95

 

 

 

252

 

 

 

196

 

 

 

48

 

 

 

665

 

 

 

235

Regulatory assessments

 

 

157

 

 

 

228

 

 

 

371

 

 

 

(59

)

 

 

462

 

 

 

697

 

 

 

1,744

Other intangible assets

amortization expense

 

 

2,003

 

 

 

2,003

 

 

 

1,959

 

 

 

1,773

 

 

 

1,834

 

 

 

7,738

 

 

 

5,629

Advertising and promotions

 

 

1,114

 

 

 

843

 

 

 

732

 

 

 

709

 

 

 

590

 

 

 

3,398

 

 

 

1,723

Telecommunications

 

 

488

 

 

 

474

 

 

 

537

 

 

 

464

 

 

 

391

 

 

 

1,963

 

 

 

1,710

Other non-interest expense

 

 

2,675

 

 

 

2,679

 

 

 

2,711

 

 

 

2,968

 

 

 

2,732

 

 

 

11,033

 

 

 

9,501

Total non-interest expense

 

$

43,694

 

 

$

45,448

 

 

$

43,954

 

 

$

40,679

 

 

$

40,088

 

 

$

173,775

 

 

$

154,896

Non-interest expense for the fourth quarter of 2019 was $43.7 million, a decrease of $1.8 million, or 3.9%, from $45.4 million for the third quarter of 2019.

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

  • A decrease of $1.7 million in legal, audit and other professional fees, as the prior quarter reflected $1.5 million of non-recurring professional services costs;
  • A decrease of $1.4 million in data processing expense, mostly due to expenses associated with our Oak Park River Forest core system conversion during the prior quarter; and
  • A decrease of $309,000 in salaries and employee benefits, as the prior quarter included acquisition related salary and employee benefit costs.

Partially offset by:

  • An increase of $699,000 in loan and lease related expenses due to higher loan expenses on government guaranteed loans;
  • An increase of $561,000 in occupancy expense, net, largely due to a favorable accrual adjustment to property tax expense in the prior quarter as well as an increase in rental expense related to office expansion; and
  • An increase of $271,000 in advertising and promotions expense due to additional media advertisement during the quarter.

The Company’s efficiency ratio was 60.93% for the fourth quarter of 2019, compared with 59.81% for the third 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 60.51% for the fourth quarter of 2019, compared with 58.17% for the third 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 $4.5 million during the fourth quarter of 2019, an effective tax rate of 22.1%, compared to $5.9 million during the third quarter of 2019, an effective tax rate of 27.9%. The decrease in the effective tax rate was due to tax benefits recorded as a result of the recognition of tax assets associated with other real estate owned.

STATEMENTS OF FINANCIAL CONDITION

Total assets were $5.5 billion at December 31, 2019, an increase of $83.5 million compared to $5.4 billion at September 30, 2019, and an increase of $579.2 million compared to $4.9 billion at December 31, 2018.

The current quarter increase was primarily due to:

  • An increase in securities of $154.7 million, reflecting purchases of mortgage-backed securities during the quarter;
  • An increase in loans held for sale of $4.6 million, largely due to the timing of loan originations during the quarter; and
  • An increase in other real estate owned of $3.4 million due to the volume of transfers in exceeding sales.

Partially offset by:

  • A decrease in loans and leases of $45.4 million, mostly due to a decrease of $112.9 million in our acquired loan portfolio, partially offset by an increase of $67.5 million in our originated loan portfolio; and
  • A decrease in cash and cash equivalents of $28.1 million due to the redeployment of cash into earning assets.

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

 

 

December 31, 2019

 

September 30, 2019

 

December 31, 2018

(dollars in thousands)

 

Amount

 

% of Total

 

Amount

 

% of Total

 

Amount

 

% of Total

Originated loans and leases

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Commercial real estate

 

$

792,263

 

 

 

20.9

%

 

$

772,559

 

 

 

20.2

%

 

$

652,234

 

 

 

18.6

%

Residential real estate

 

 

483,072

 

 

 

12.8

%

 

 

497,839

 

 

 

13.0

%

 

 

466,309

 

 

 

13.3

%

Construction, land development, and other land

 

 

235,794

 

 

 

6.2

%

 

 

236,780

 

 

 

6.2

%

 

 

144,128

 

 

 

4.1

%

Commercial and industrial

 

 

1,160,996

 

 

 

30.7

%

 

 

1,096,400

 

 

 

28.6

%

 

 

803,508

 

 

 

22.9

%

Installment and other

 

 

5,372

 

 

 

0.1

%

 

 

7,818

 

 

 

0.2

%

 

 

11,718

 

 

 

0.3

%

Leasing financing receivables

 

 

158,155

 

 

 

4.2

%

 

 

156,758

 

 

 

4.1

%

 

 

159,901

 

 

 

4.6

%

Total originated loans and leases

 

$

2,835,652

 

 

 

74.9

%

 

$

2,768,154

 

 

 

72.3

%

 

$

2,237,798

 

 

 

63.8

%

Acquired impaired loans

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Commercial real estate

 

$

135,914

 

 

 

3.6

%

 

$

142,435

 

 

 

3.7

%

 

$

146,808

 

 

 

4.2

%

Residential real estate

 

 

100,223

 

 

 

2.7

%

 

 

109,409

 

 

 

2.9

%

 

 

113,934

 

 

 

3.3

%

Construction, land development, and other land

 

 

5,373

 

 

 

0.1

%

 

 

4,562

 

 

 

0.1

%

 

 

3,779

 

 

 

0.1

%

Commercial and industrial

 

 

16,909

 

 

 

0.4

%

 

 

18,349

 

 

 

0.5

%

 

 

12,617

 

 

 

0.4

%

Installment and other

 

 

249

 

 

 

0.0

%

 

 

267

 

 

 

0.0

%

 

 

404

 

 

 

0.0

%

Total acquired impaired loans

 

$

258,668

 

 

 

6.8

%

 

$

275,022

 

 

 

7.2

%

 

$

277,542

 

 

 

8.0

%

Acquired non-impaired loans and leases

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Commercial real estate

 

$

348,365

 

 

 

9.2

%

 

$

391,294

 

 

 

10.2

%

 

$

462,565

 

 

 

13.2

%

Residential real estate

 

 

128,527

 

 

 

3.4

%

 

 

141,855

 

 

 

3.7

%

 

 

124,659

 

 

 

3.6

%

Construction, land development, and other land

 

 

37,490

 

 

 

1.0

%

 

 

39,657

 

 

 

1.0

%

 

 

37,442

 

 

 

1.1

%

Commercial and industrial

 

 

153,660

 

 

 

4.1

%

 

 

187,413

 

 

 

4.9

%

 

 

328,672

 

 

 

9.4

%

Installment and other

 

 

944

 

 

 

0.0

%

 

 

1,269

 

 

 

0.0

%

 

 

1,596

 

 

 

0.0

%

Leasing financing receivables

 

 

22,355

 

 

 

0.6

%

 

 

26,426

 

 

 

0.7

%

 

 

31,352

 

 

 

0.9

%

Total acquired non-impaired loans and leases

 

$

691,341

 

 

 

18.3

%

 

$

787,914

 

 

 

20.5

%

 

$

986,286

 

 

 

28.2

%

Total loans and leases

 

$

3,785,661

 

 

 

100.0

%

 

$

3,831,090

 

 

 

100.0

%

 

$

3,501,626

 

 

 

100.0

%

Allowance for loan and lease losses

 

 

(31,936

)

 

 

 

 

 

(31,585

)

 

 

 

 

 

(25,201

)

 

 

 

Total loans and leases, net of allowance for loan and lease losses

 

$

3,753,725

 

 

 

 

 

$

3,799,505

 

 

 

 

 

$

3,476,425

 

 

 

 

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:

 

 

December 31,

 

 

September 30,

 

 

June 30,

 

 

March 31,

 

 

December 31,

 

(dollars in thousands)

 

2019

 

 

2019

 

 

2019

 

 

2019

 

 

2018

 

Non-performing assets:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Non-accrual loans and leases

 

$

36,272

 

 

$

39,529

 

 

$

34,027

 

 

$

28,539

 

 

$

25,834

 

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

 

 

 

 

 

 

 

 

996

 

 

 

 

 

 

 

Accruing troubled debt restructured loans

 

 

1,771

 

 

 

2,204

 

 

 

1,529

 

 

 

1,921

 

 

 

1,813

 

Total non-performing loans and leases

 

 

38,043

 

 

 

41,733

 

 

 

36,552

 

 

 

30,460

 

 

 

27,647

 

Other real estate owned

 

 

9,896

 

 

 

6,502

 

 

 

6,531

 

 

 

4,595

 

 

 

5,041

 

Total non-performing assets

 

$

47,939

 

 

$

48,235

 

 

$

43,083

 

 

$

35,055

 

 

$

32,688

 

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

 

 

1.00

%

 

 

1.09

%

 

 

0.95

%

 

 

0.85

%

 

 

0.79

%

Total non-performing assets as a percentage of total assets

 

 

0.87

%

 

 

0.89

%

 

 

0.80

%

 

 

0.70

%

 

 

0.66

%

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

 

 

83.95

%

 

 

75.68

%

 

 

85.17

%

 

 

88.99

%

 

 

91.15

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Non-accrual loans guaranteed

 

$

4,232

 

 

$

4,167

 

 

$

4,723

 

 

$

5,070

 

 

$

4,245

 

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

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Accruing troubled debt restructured loans guaranteed

 

 

 

 

 

 

 

 

 

 

 

 

 

 

381

 

Total non-performing loans guaranteed

 

$

4,232

 

 

$

4,167

 

 

$

4,723

 

 

$

5,070

 

 

$

4,626

 

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

 

 

0.89

%

 

 

0.98

%

 

 

0.82

%

 

 

0.71

%

 

 

0.66

%

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

 

 

0.79

%

 

 

0.81

%

 

 

0.71

%

 

 

0.60

%

 

 

0.57

%

Variances in non-performing assets:

  • Non-performing loans and leases were $38.0 million at December 31, 2019, a decrease of $3.6 million from $41.7 million at September 30, 2019, principally due to loan resolutions; and
  • Other real estate owned was $9.9 million at December 31, 2019, an increase of $3.4 million from $6.5 million at September 30, 2019 due to higher volume of transfers from loans exceeding sales.

U.S. government guaranteed balances of non-performing loans were consistent at $4.2 million at December 31, 2019 and September 30, 2019.

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

 

Year Ended

 

 

December 31,

 

September 30,

 

June 30,

 

March 31,

 

December 31,

 

December 31,

 

December 31,

(dollars in thousands)

 

2019

 

2019

 

2019

 

2019

 

2018

 

2019

 

2018

Allowance for loan and lease losses, beginning of period

 

$

31,585

 

 

$

31,132

 

 

$

27,106

 

 

$

25,201

 

 

$

23,424

 

 

$

25,201

 

 

$

16,706

 

Provision for loan and lease losses

 

 

4,387

 

 

 

5,931

 

 

 

6,391

 

 

 

3,999

 

 

 

3,882

 

 

 

20,708

 

 

 

18,795

 

Net charge-offs of loans and leases

 

 

(4,036

)

 

 

(5,478

)

 

 

(2,365

)

 

 

(2,094

)

 

 

(2,105

)

 

 

(13,973

)

 

 

(10,300

)

Allowance for loan and lease losses, end of period

 

$

31,936

 

 

$

31,585

 

 

$

31,132

 

 

$

27,106

 

 

$

25,201

 

 

$

31,936

 

 

$

25,201

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Allowance for loan and lease losses to period end total loans and leases held for investment

 

 

0.84

%

 

 

0.82

%

 

 

0.81

%

 

 

0.76

%

 

 

0.72

%

 

 

0.84

%

 

 

0.72

%

Net charge-offs (annualized) to average loans and leases outstanding during the period

 

 

0.42

%

 

 

0.56

%

 

 

0.25

%

 

 

0.24

%

 

 

0.24

%

 

 

0.37

%

 

 

0.35

%

Provision for loan and lease losses to net charge-offs during the period

 

1.09x

 

1.08x

 

2.70x

 

1.91x

 

1.84x

 

 

1.48x

 

1.82x

The allowance for loan and lease losses as a percentage of total loans and leases held for investment increased to 0.84% at December 31, 2019, compared to 0.82% at September 30, 2019 and 0.72% at December 31, 2018.

In June 2016, the Financial Accounting Standards Board (“FASB”) issued new authoritative guidance on the recognition of credit losses which replaces the incurred loss impairment methodology in current authoritative guidance with a methodology that reflects expected credit losses. In November 2019, the FASB delayed the effective date of the new authoritative guidance for entities, like the Company, that are not classified as Public Business Entities. Assuming the Company remains an emerging growth company, the new authoritative guidance is effective for fiscal years beginning after December 15, 2022. The Company is in process of implementation and determining the impact that this new authoritative guidance will have on the Company’s consolidated financial statements.

Net Charge-Offs

Net charge-offs during the fourth quarter of 2019 were $4.0 million, or 0.42% of average loans and leases, on an annualized basis, a decrease of $1.4 million compared to $5.5 million, or 0.56% of average loans and leases, during the third quarter of 2019, and an increase from $2.1 million, or 0.24%, 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 fourth quarter of 2019 included $3.6 million in the unguaranteed portion of U.S. government guaranteed loans, while net charge-offs for the third quarter of 2019 included $4.8 million and fourth quarter of 2018 included $1.8 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:

 

 

December 31,

 

 

September 30,

 

 

June 30,

 

 

March 31,

 

 

December 31,

(dollars in thousands)

 

2019

 

 

2019

 

 

2019

 

 

2019

 

 

2018

Non-interest-bearing demand deposits

 

$

1,279,641

 

 

$

1,221,431

 

 

$

1,240,375

 

 

$

1,163,255

 

 

$

1,192,873

Interest-bearing checking accounts

 

 

338,185

 

 

 

372,049

 

 

 

345,081

 

 

 

305,393

 

 

 

296,339

Money market demand accounts

 

 

881,387

 

 

 

745,154

 

 

 

728,954

 

 

 

611,634

 

 

 

640,401

Other savings

 

 

475,839

 

 

 

471,878

 

 

 

480,756

 

 

 

468,524

 

 

 

476,418

Time deposits (below $250,000)

 

 

916,723

 

 

 

966,866

 

 

 

980,162

 

 

 

967,999

 

 

 

911,603

Time deposits ($250,000 and above)

 

 

255,802

 

 

 

302,936

 

 

 

284,915

 

 

 

291,711

 

 

 

232,282

Total deposits

 

$

4,147,577

 

 

$

4,080,314

 

 

$

4,060,243

 

 

$

3,808,516

 

 

$

3,749,916

Total deposits were $4.1 billion at December 31, 2019, an increase of $67.3 million compared to September 30, 2019, an increase of 1.6%. Non-interest-bearing deposits rose to 30.9% of total deposits at December 31, 2019 from 29.9% at September 30, 2019.

The increase in the current quarter was primarily due to:

  • An increase in money market demand deposits of $136.2 million, from $745.2 million at September 30, 2019 to $881.4 million at December 31, 2019, largely driven by growth in business account balances; and
  • An increase in non-interest-bearing demand deposits of $58.2 million, from $1.2 billion at September 30, 2019 to $1.3 billion at December 31, 2019, also driven by increases in business account balances.

Partially offset by:

  • A decrease in time deposits of $97.3 million, from $1.3 billion at September 30, 2019 to $1.2 billion at December 31, 2019, principally driven by decreases in brokered certificates; and
  • A decrease in interest-bearing checking deposits of $33.9 million, from $372.0 million at September 30, 2019 to $338.2 million at December 31, 2019, mainly driven by NOW business account balances.

Total borrowings and other liabilities were $624.1 million at December 31, 2019, an increase of $2.0 million from $622.1 million at September 30, 2019, mainly due to an increase in securities sold under agreements to repurchase partially offset by a decrease in FHLB advances.

Stockholders’ Equity

Total stockholders’ equity was $750.1 million at December 31, 2019, an increase of $14.2 million from $735.9 million at September 30, 2019. The increase was due to net income generated during the quarter less dividends declared. On December 12, 2019, the Company announced that its Board of Directors declared the first cash dividend on its common stock of $0.03 per share for the fourth quarter of 2019.

Stockholders’ equity increased $99.4 million from $650.7 million at December 31, 2018. The increase was mainly due to net income generated during the year and the stock consideration issued in connection with the acquisition.

On November 1, 2019, the Company announced that its Board of Directors approved a stock repurchase program authorizing the purchase of up to an aggregate of 1,250,000 shares of the Company’s outstanding common stock. The program will be in effect until December 31, 2020, unless terminated earlier. The Company has not made any stock repurchases under this program.

The following table presents the actual regulatory capital dollar amounts and ratios of the Company and Byline Bank as of December 31, 2019:

 

 

Actual

 

 

Minimum Capital

Required

 

 

Required to be

Considered

Well Capitalized

 

December 31, 2019

 

Amount

 

 

Ratio

 

 

Amount

 

 

Ratio

 

 

Amount

 

 

Ratio

 

Total capital to risk weighted assets:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Company

 

$

627,573

 

 

 

14.43

%

 

$

347,835

 

 

 

8.00

%

 

N/A

 

 

N/A

 

Bank

 

 

602,684

 

 

 

13.87

%

 

 

347,564

 

 

 

8.00

%

 

$

434,454

 

 

 

10.00

%

Tier 1 capital to risk weighted assets:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Company

 

$

594,477

 

 

 

13.67

%

 

$

260,876

 

 

 

6.00

%

 

N/A

 

 

N/A

 

Bank

 

 

569,588

 

 

 

13.11

%

 

 

260,673

 

 

 

6.00

%

 

$

347,564

 

 

 

8.00

%

Common Equity Tier 1 (CET1) to risk weighted assets:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Company

 

$

537,539

 

 

 

12.36

%

 

$

195,657

 

 

 

4.50

%

 

N/A

 

 

N/A

 

Bank

 

 

569,588

 

 

 

13.11

%

 

 

195,504

 

 

 

4.50

%

 

$

282,395

 

 

 

6.50

%

Tier 1 capital to average assets:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Company

 

$

594,477

 

 

 

11.39

%

 

$

208,771

 

 

 

4.00

%

 

N/A

 

 

N/A

 

Bank

 

 

569,588

 

 

 

10.92

%

 

 

208,647

 

 

 

4.00

%

 

$

260,809

 

 

 

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, January 24, 2020 to discuss its full year and 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 February 7, 2020 by dialing (877) 344-7529; passcode: 10138134.

A slide presentation relating to the fourth 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 $5.5 billion in assets and operates more than 50 full service branch locations throughout the Chicago and Milwaukee metropolitan areas. Byline Bank offers a broad range of commercial and retail banking products and services including small ticket equipment leasing solutions and is one of the top 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)

 

 

 

December 31,

 

September 30,

 

June 30,

 

March 31,

 

December 31,

(dollars in thousands)

 

2019

 

2019

 

2019

 

2019

 

2018

ASSETS

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cash and due from banks

 

$

48,228

 

 

$

75,275

 

 

$

57,513

 

 

$

50,026

 

 

$

30,190

 

Interest bearing deposits with other banks

 

 

32,509

 

 

 

33,564

 

 

 

31,802

 

 

 

31,971

 

 

 

91,670

 

Cash and cash equivalents

 

 

80,737

 

 

 

108,839

 

 

 

89,315

 

 

 

81,997

 

 

 

121,860

 

Equity and other securities, at fair value

 

 

8,031

 

 

 

7,648

 

 

 

7,662

 

 

 

7,216

 

 

 

 

Securities available-for-sale, at fair value

 

 

1,186,292

 

 

 

1,031,933

 

 

 

969,029

 

 

 

964,553

 

 

 

817,656

 

Securities held-to-maturity, at amortized cost

 

 

4,412

 

 

 

4,417

 

 

 

4,421

 

 

 

4,425

 

 

 

99,266

 

Restricted stock, at cost

 

 

22,127

 

 

 

24,331

 

 

 

22,937

 

 

 

19,202

 

 

 

19,202

 

Loans held for sale

 

 

11,732

 

 

 

7,176

 

 

 

18,473

 

 

 

510

 

 

 

19,827

 

Loans and leases:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Loans and leases

 

 

3,785,661

 

 

 

3,831,090

 

 

 

3,863,148

 

 

 

3,567,566

 

 

 

3,501,626

 

Allowance for loan and lease losses

 

 

(31,936

)

 

 

(31,585

)

 

 

(31,132

)

 

 

(27,106

)

 

 

(25,201

)

Net loans and leases

 

 

3,753,725

 

 

 

3,799,505

 

 

 

3,832,016

 

 

 

3,540,460

 

 

 

3,476,425

 

Servicing assets, at fair value

 

 

19,471

 

 

 

19,939

 

 

 

19,760

 

 

 

19,534

 

 

 

19,693

 

Accrued interest receivable

 

 

13,283

 

 

 

13,013

 

 

 

12,913

 

 

 

11,974

 

 

 

10,863

 

Premises and equipment, net

 

 

96,140

 

 

 

96,006

 

 

 

96,588

 

 

 

97,069

 

 

 

97,680

 

Assets held for sale

 

 

15,362

 

 

 

15,472

 

 

 

16,329

 

 

 

13,596

 

 

 

14,489

 

Other real estate owned, net

 

 

9,896

 

 

 

6,502

 

 

 

6,531

 

 

 

4,595

 

 

 

5,041

 

Goodwill

 

 

148,353

 

 

 

145,638

 

 

 

145,638

 

 

 

128,177

 

 

 

128,177

 

Other intangible assets, net

 

 

31,902

 

 

 

33,905

 

 

 

35,908

 

 

 

31,646

 

 

 

33,419

 

Bank-owned life insurance

 

 

9,750

 

 

 

9,699

 

 

 

9,634

 

 

 

6,087

 

 

 

5,961

 

Deferred tax assets, net

 

 

38,315

 

 

 

33,388

 

 

 

35,737

 

 

 

30,534

 

 

 

35,643

 

Due from counterparty

 

 

43,145

 

 

 

47,045

 

 

 

34,226

 

 

 

20,691

 

 

 

5,338

 

Other assets

 

 

29,136

 

 

 

33,822

 

 

 

34,119

 

 

 

27,659

 

 

 

32,034

 

Total assets

 

$

5,521,809

 

 

$

5,438,278

 

 

$

5,391,236

 

 

$

5,009,925

 

 

$

4,942,574

 

LIABILITIES AND STOCKHOLDERS’ EQUITY

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

LIABILITIES

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Non-interest-bearing demand deposits

 

$

1,279,641

 

 

$

1,221,431

 

 

$

1,240,375

 

 

$

1,163,255

 

 

$

1,192,873

 

Interest-bearing deposits:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

NOW, savings accounts, and money market accounts

 

 

1,695,411

 

 

 

1,589,081

 

 

 

1,554,791

 

 

 

1,385,551

 

 

 

1,413,158

 

Time deposits

 

 

1,172,525

 

 

 

1,269,802

 

 

 

1,265,077

 

 

 

1,259,710

 

 

 

1,143,885

 

Total deposits

 

 

4,147,577

 

 

 

4,080,314

 

 

 

4,060,243

 

 

 

3,808,516

 

 

 

3,749,916

 

Accrued interest payable

 

 

3,677

 

 

 

4,778

 

 

 

4,522

 

 

 

4,390

 

 

 

3,484

 

Line of credit

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Federal Home Loan Bank advances

 

 

490,000

 

 

 

506,000

 

 

 

500,000

 

 

 

425,000

 

 

 

425,000

 

Securities sold under agreements to repurchase

 

 

49,638

 

 

 

32,290

 

 

 

32,885

 

 

 

34,369

 

 

 

34,166

 

Junior subordinated debentures issued to capital trusts, net

 

 

37,334

 

 

 

37,207

 

 

 

37,059

 

 

 

36,912

 

 

 

36,768

 

Accrued expenses and other liabilities

 

 

43,468

 

 

 

41,823

 

 

 

38,852

 

 

 

31,989

 

 

 

42,568

 

Total liabilities

 

 

4,771,694

 

 

 

4,702,412

 

 

 

4,673,561

 

 

 

4,341,176

 

 

 

4,291,902

 

STOCKHOLDERS’ EQUITY

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Preferred stock

 

 

10,438

 

 

 

10,438

 

 

 

10,438

 

 

 

10,438

 

 

 

10,438

 

Common stock

 

 

379

 

 

 

378

 

 

 

378

 

 

 

362

 

 

 

361

 

Additional paid-in capital

 

 

580,965

 

 

 

579,564

 

 

 

578,828

 

 

 

548,005

 

 

 

546,849

 

Retained earnings

 

 

159,033

 

 

 

144,525

 

 

 

129,379

 

 

 

116,363

 

 

 

102,522

 

Accumulated other comprehensive income (loss), net of tax

 

 

(700

)

 

 

961

 

 

 

(1,348

)

 

 

(6,419

)

 

 

(9,498

)

Total stockholders’ equity

 

 

750,115

 

 

 

735,866

 

 

 

717,675

 

 

 

668,749

 

 

 

650,672

 

Total liabilities and stockholders’ equity

 

$

5,521,809

 

 

$

5,438,278

 

 

$

5,391,236

 

 

$

5,009,925

 

 

$

4,942,574

 

BYLINE BANCORP, INC. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF OPERATIONS (unaudited)

 

 

 

Three Months Ended

 

 

Year Ended

 

 

 

December 31,

 

 

September 30,

 

 

June 30,

 

 

March 31,

 

 

December 31,

 

 

December 31,

 

 

December 31,

 

(dollars in thousands, except per share data)

 

2019

 

 

2019

 

 

2019

 

 

2019

 

 

2018

 

 

2019

 

 

2018

 

INTEREST AND DIVIDEND INCOME

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest and fees on loans and leases

 

$

58,203

 

 

$

63,391

 

 

$

59,524

 

 

$

54,383

 

 

$

56,646

 

 

$

235,501

 

 

$

184,972

 

Interest on taxable securities

 

 

6,683

 

 

 

6,554

 

 

 

6,237

 

 

 

5,759

 

 

 

5,334

 

 

 

25,233

 

 

 

19,037

 

Interest on tax-exempt securities

 

 

529

 

 

 

486

 

 

 

428

 

 

 

343

 

 

 

355

 

 

 

1,786

 

 

 

1,095

 

Other interest and dividend income

 

 

500

 

 

 

598

 

 

 

571

 

 

 

625

 

 

 

560

 

 

 

2,294

 

 

 

1,847

 

Total interest and dividend income

 

 

65,915

 

 

 

71,029

 

 

 

66,760

 

 

 

61,110

 

 

 

62,895

 

 

 

264,814

 

 

 

206,951

 

INTEREST EXPENSE

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Deposits

 

 

9,325

 

 

 

9,618

 

 

 

9,306

 

 

 

8,076

 

 

 

7,115

 

 

 

36,325

 

 

 

19,329

 

Federal Home Loan Bank advances

 

 

1,917

 

 

 

2,771

 

 

 

2,174

 

 

 

2,099

 

 

 

1,719

 

 

 

8,961

 

 

 

6,160

 

Subordinated debentures and other

borrowings

 

 

759

 

 

 

802

 

 

 

832

 

 

 

850

 

 

 

800

 

 

 

3,243

 

 

 

2,857

 

Total interest expense

 

 

12,001

 

 

 

13,191

 

 

 

12,312

 

 

 

11,025

 

 

 

9,634

 

 

 

48,529

 

 

 

28,346

 

Net interest income

 

 

53,914

 

 

 

57,838

 

 

 

54,448

 

 

 

50,085

 

 

 

53,261

 

 

 

216,285

 

 

 

178,605

 

PROVISION FOR LOAN AND LEASE LOSSES

 

 

4,387

 

 

 

5,931

 

 

 

6,391

 

 

 

3,999

 

 

 

3,882

 

 

 

20,708

 

 

 

18,795

 

Net interest income after provision

for loan and lease losses

 

 

49,527

 

 

 

51,907

 

 

 

48,057

 

 

 

46,086

 

 

 

49,379

 

 

 

195,577

 

 

 

159,810

 

NON-INTEREST INCOME

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Fees and service charges on deposits

 

 

1,635

 

 

 

1,612

 

 

 

1,441

 

 

 

1,770

 

 

 

1,852

 

 

 

6,458

 

 

 

6,445

 

Loan servicing revenue

 

 

2,834

 

 

 

2,692

 

 

 

2,630

 

 

 

2,539

 

 

 

2,667

 

 

 

10,695

 

 

 

10,272

 

Loan servicing asset revaluation

 

 

(2,545

)

 

 

(1,610

)

 

 

(1,223

)

 

 

(1,261

)

 

 

(2,862

)

 

 

(6,639

)

 

 

(9,269

)

ATM and interchange fees

 

 

1,150

 

 

 

973

 

 

 

945

 

 

 

717

 

 

 

1,010

 

 

 

3,785

 

 

 

4,313

 

Net gains on sales of securities

available-for-sale

 

 

 

 

 

178

 

 

 

973

 

 

 

 

 

 

160

 

 

 

1,151

 

 

 

164

 

Change in fair value of equity securities,

net

 

 

381

 

 

 

(15

)

 

 

551

 

 

 

499

 

 

 

 

 

 

1,416

 

 

 

 

Net gains on sales of loans

 

 

8,735

 

 

 

9,405

 

 

 

7,472

 

 

 

6,233

 

 

 

9,337

 

 

 

31,845

 

 

 

31,551

 

Wealth management and trust income

 

 

704

 

 

 

653

 

 

 

626

 

 

 

595

 

 

 

679

 

 

 

2,578

 

 

 

1,545

 

Other non-interest income

 

 

1,622

 

 

 

918

 

 

 

768

 

 

 

896

 

 

 

1,447

 

 

 

4,204

 

 

 

5,505

 

Total non-interest income

 

 

14,516

 

 

 

14,806

 

 

 

14,183

 

 

 

11,988

 

 

 

14,290

 

 

 

55,493

 

 

 

50,526

 

NON-INTEREST EXPENSE

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Salaries and employee benefits

 

 

24,228

 

 

 

24,537

 

 

 

23,652

 

 

 

22,892

 

 

 

21,548

 

 

 

95,309

 

 

 

80,382

 

Occupancy expense, net

 

 

4,306

 

 

 

3,745

 

 

 

4,337

 

 

 

4,280

 

 

 

4,027

 

 

 

16,668

 

 

 

15,829

 

Equipment expense

 

 

935

 

 

 

767

 

 

 

732

 

 

 

669

 

 

 

641

 

 

 

3,103

 

 

 

2,419

 

Loan and lease related expenses

 

 

2,648

 

 

 

1,949

 

 

 

1,841

 

 

 

1,577

 

 

 

2,223

 

 

 

8,015

 

 

 

6,109

 

Legal, audit, and other professional fees

 

 

2,340

 

 

 

4,066

 

 

 

2,981

 

 

 

2,066

 

 

 

2,746

 

 

 

11,453

 

 

 

11,373

 

Data processing

 

 

2,678

 

 

 

4,062

 

 

 

3,849

 

 

 

3,144

 

 

 

2,846

 

 

 

13,733

 

 

 

18,242

 

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

 

 

122

 

 

 

95

 

 

 

252

 

 

 

196

 

 

 

48

 

 

 

665

 

 

 

235

 

Regulatory assessments

 

 

157

 

 

 

228

 

 

 

371

 

 

 

(59

)

 

 

462

 

 

 

697

 

 

 

1,744

 

Other intangible assets amortization

expense

 

 

2,003

 

 

 

2,003

 

 

 

1,959

 

 

 

1,773

 

 

 

1,834

 

 

 

7,738

 

 

 

5,629

 

Advertising and promotions

 

 

1,114

 

 

 

843

 

 

 

732

 

 

 

709

 

 

 

590

 

 

 

3,398

 

 

 

1,723

 

Telecommunications

 

 

488

 

 

 

474

 

 

 

537

 

 

 

464

 

 

 

391

 

 

 

1,963

 

 

 

1,710

 

Other non-interest expense

 

 

2,675

 

 

 

2,679

 

 

 

2,711

 

 

 

2,968

 

 

 

2,732

 

 

 

11,033

 

 

 

9,501

 

Total non-interest expense

 

 

43,694

 

 

 

45,448

 

 

 

43,954

 

 

 

40,679

 

 

 

40,088

 

 

 

173,775

 

 

 

154,896

 

INCOME BEFORE PROVISION FOR INCOME TAXES

 

 

20,349

 

 

 

21,265

 

 

 

18,286

 

 

 

17,395

 

 

 

23,581

 

 

 

77,295

 

 

 

55,440

 

PROVISION FOR INCOME TAXES

 

 

4,497

 

 

 

5,923

 

 

 

5,075

 

 

 

4,798

 

 

 

6,460

 

 

 

20,293

 

 

 

14,247

 

NET INCOME

 

 

15,852

 

 

 

15,342

 

 

 

13,211

 

 

 

12,597

 

 

 

17,121

 

 

 

57,002

 

 

 

41,193

 

Dividends on preferred shares

 

 

196

 

 

 

196

 

 

 

195

 

 

 

196

 

 

 

196

 

 

 

783

 

 

 

783

 

INCOME AVAILABLE TO COMMON

STOCKHOLDERS

 

$

15,656

 

 

$

15,146

 

 

$

13,016

 

 

$

12,401

 

 

$

16,925

 

 

$

56,219

 

 

$

40,410

 

EARNINGS PER COMMON SHARE

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic

 

$

0.41

 

 

$

0.40

 

 

$

0.35

 

 

$

0.34

 

 

$

0.47

 

 

$

1.51

 

 

$

1.21

 

Diluted

 

$

0.41

 

 

$

0.39

 

 

$

0.34

 

 

$

0.34

 

 

$

0.46

 

 

$

1.48

 

 

$

1.18

 

BYLINE BANCORP, INC. AND SUBSIDIARIES

SELECTED FINANCIAL DATA (unaudited)

 

 

 

As of or For the Three Months Ended

 

 

As of or For the Year Ended

 

(dollars in thousands, except share and

 

December 31,

 

 

September 30,

 

 

June 30,

 

 

March 31,

 

 

December 31,

 

 

December 31,

 

 

December 31,

 

per share data)

 

2019

 

 

2019

 

 

2019

 

 

2019

 

 

2018

 

 

2019

 

 

2018

 

Earnings per Common Share

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic earnings per common share

 

$

0.41

 

 

$

0.40

 

 

$

0.35

 

 

$

0.34

 

 

$

0.47

 

 

$

1.51

 

 

$

1.21

 

Diluted earnings per common share

 

$

0.41

 

 

$

0.39

 

 

$

0.34

 

 

$

0.34

 

 

$

0.46

 

 

$

1.48

 

 

$

1.18

 

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

 

$

0.42

 

 

$

0.41

 

 

$

0.41

 

 

$

0.38

 

 

$

0.49

 

 

$

1.62

 

 

$

1.43

 

Weighted average common shares outstanding (basic)

 

 

37,872,835

 

 

 

37,831,356

 

 

 

37,263,352

 

 

 

36,169,477

 

 

 

36,116,189

 

 

 

37,290,486

 

 

 

33,292,619

 

Weighted average common shares outstanding (diluted)

 

 

38,537,899

 

 

 

38,487,180

 

 

 

37,948,006

 

 

 

36,876,574

 

 

 

36,900,589

 

 

 

37,986,463

 

 

 

34,179,754

 

Common shares outstanding

 

 

38,256,500

 

 

 

38,169,126

 

 

 

38,115,219

 

 

 

36,398,144

 

 

 

36,343,239

 

 

 

38,256,500

 

 

 

36,343,239

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Key Ratios and Performance Metrics

(annualized where applicable)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net interest margin

 

 

4.32

%

 

 

4.62

%

 

 

4.51

%

 

 

4.43

%

 

 

4.69

%

 

 

4.47

%

 

 

4.60

%

Cost of deposits

 

 

0.88

%

 

 

0.94

%

 

 

0.92

%

 

 

0.87

%

 

 

0.75

%

 

 

0.91

%

 

 

0.60

%

Efficiency ratio(1)

 

 

60.93

%

 

 

59.81

%

 

 

61.19

%

 

 

62.68

%

 

 

56.63

%

 

 

61.09

%

 

 

65.15

%

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

 

 

60.51

%

 

 

58.17

%

 

 

56.02

%

 

 

59.55

%

 

 

54.76

%

 

 

58.53

%

 

 

59.68

%

Non-interest expense to average assets

 

 

3.19

%

 

 

3.32

%

 

 

3.34

%

 

 

3.32

%

 

 

3.25

%

 

 

3.29

%

 

 

3.65

%

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

 

 

3.17

%

 

 

3.23

%

 

 

3.07

%

 

 

3.17

%

 

 

3.15

%

 

 

3.16

%

 

 

3.36

%

Return on average stockholders' equity

 

 

8.43

%

 

 

8.34

%

 

 

7.60

%

 

 

7.75

%

 

 

10.61

%

 

 

8.05

%

 

 

7.34

%

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

 

 

8.54

%

 

 

8.78

%

 

 

9.16

%

 

 

8.61

%

 

 

11.21

%

 

 

8.77

%

 

 

8.85

%

Return on average assets

 

 

1.16

%

 

 

1.12

%

 

 

1.00

%

 

 

1.03

%

 

 

1.39

%

 

 

1.08

%

 

 

0.97

%

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

 

 

1.17

%

 

 

1.18

%

 

 

1.21

%

 

 

1.14

%

 

 

1.47

%

 

 

1.18

%

 

 

1.17

%

Non-interest income to total revenues(2)

 

 

21.21

%

 

 

20.38

%

 

 

20.67

%

 

 

19.31

%

 

 

21.16

%

 

 

20.42

%

 

 

22.05

%

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

 

 

1.81

%

 

 

1.98

%

 

 

1.88

%

 

 

1.75

%

 

 

2.23

%

 

 

1.86

%

 

 

1.75

%

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

 

 

1.83

%

 

 

2.07

%

 

 

2.15

%

 

 

1.91

%

 

 

2.33

%

 

 

1.99

%

 

 

2.05

%

Return on average tangible common stockholders' equity(2)

 

 

12.20

%

 

 

12.22

%

 

 

11.32

%

 

 

11.37

%

 

 

15.49

%

 

 

11.80

%

 

 

10.44

%

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

 

 

12.35

%

 

 

12.82

%

 

 

13.44

%

 

 

12.54

%

 

 

16.31

%

 

 

12.78

%

 

 

12.44

%

Non-interest-bearing deposits to total deposits

 

 

30.85

%

 

 

29.93

%

 

 

30.55

%

 

 

30.54

%

 

 

31.81

%

 

 

30.85

%

 

 

31.81

%

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

 

 

91.56

%

 

 

94.07

%

 

 

95.60

%

 

 

93.69

%

 

 

93.91

%

 

 

91.56

%

 

 

93.91

%

Deposits to total liabilities

 

 

86.92

%

 

 

86.77

%

 

 

86.88

%

 

 

87.73

%

 

 

87.37

%

 

 

86.92

%

 

 

87.37

%

Deposits per branch

 

$

67,993

 

 

$

66,890

 

 

$

66,561

 

 

$

65,664

 

 

$

63,558

 

 

$

67,993

 

 

$

63,558

 

Tangible book value per common share(2)

 

$

14.62

 

 

$

14.30

 

 

$

13.79

 

 

$

13.70

 

 

$

13.17

 

 

$

14.62

 

 

$

13.17

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Asset Quality Ratios

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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

 

 

1.00

%

 

 

1.09

%

 

 

0.95

%

 

 

0.85

%

 

 

0.79

%

 

 

1.00

%

 

 

0.79

%

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

 

 

0.84

%

 

 

0.82

%

 

 

0.81

%

 

 

0.76

%

 

 

0.72

%

 

 

0.84

%

 

 

0.72

%

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

 

 

0.42

%

 

 

0.56

%

 

 

0.25

%

 

 

0.24

%

 

 

0.24

%

 

 

0.37

%

 

 

0.35

%

Acquisition accounting adjustments(5)

 

$

28,511

 

 

$

31,053

 

 

$

37,109

 

 

$

29,341

 

 

$

34,029

 

 

$

28,511

 

 

$

34,029

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Capital Ratios

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Common equity to total assets

 

 

13.40

%

 

 

13.34

%

 

 

13.12

%

 

 

13.14

%

 

 

12.95

%

 

 

13.40

%

 

 

12.95

%

Tangible common equity to tangible assets(2)

 

 

10.47

%

 

 

10.38

%

 

 

10.09

%

 

 

10.28

%

 

 

10.01

%

 

 

10.47

%

 

 

10.01

%

Leverage ratio

 

 

11.39

%

 

 

11.14

%

 

 

11.09

%

 

 

11.27

%

 

 

11.05

%

 

 

11.39

%

 

 

11.05

%

Common equity tier 1 capital ratio

 

 

12.36

%

 

 

12.12

%

 

 

11.65

%

 

 

12.14

%

 

 

11.85

%

 

 

12.36

%

 

 

11.85

%

Tier 1 capital ratio

 

 

13.67

%

 

 

13.43

%

 

 

12.96

%

 

 

13.57

%

 

 

13.30

%

 

 

13.67

%

 

 

13.30

%

Total capital ratio

 

 

14.43

%

 

 

14.19

%

 

 

13.71

%

 

 

14.28

%

 

 

13.99

%

 

 

14.43

%

 

 

13.99

%

(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 December 31,

 

 

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

 

$

38,624

 

 

$

220

 

 

2.25

%

 

$

91,852

 

 

$

316

 

 

1.37

%

Loans and leases(1)

 

 

3,807,731

 

 

 

58,203

 

 

6.06

%

 

 

3,470,264

 

 

 

56,646

 

 

6.48

%

Taxable securities

 

 

1,025,975

 

 

 

6,963

 

 

2.69

%

 

 

886,349

 

 

 

5,578

 

 

2.50

%

Tax-exempt securities(2)

 

 

84,640

 

 

 

529

 

 

2.48

%

 

 

56,649

 

 

 

355

 

 

2.48

%

Total interest-earning assets

 

$

4,956,970

 

 

$

65,915

 

 

5.28

%

 

$

4,505,114

 

 

$

62,895

 

 

5.54

%

Allowance for loan and lease losses

 

 

(32,688

)

 

 

 

 

 

 

 

 

(24,215

)

 

 

 

 

 

 

All other assets

 

 

502,764

 

 

 

 

 

 

 

 

 

415,535

 

 

 

 

 

 

 

TOTAL ASSETS

 

$

5,427,046

 

 

 

 

 

 

 

 

$

4,896,434

 

 

 

 

 

 

 

LIABILITIES AND STOCKHOLDERS’ EQUITY

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Deposits

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest checking

 

$

399,065

 

 

$

612

 

 

0.61

%

 

$

308,821

 

 

$

407

 

 

0.52

%

Money market accounts

 

 

790,565

 

 

 

1,945

 

 

0.98

%

 

 

653,141

 

 

 

1,505

 

 

0.91

%

Savings

 

 

474,394

 

 

 

63

 

 

0.05

%

 

 

489,486

 

 

 

157

 

 

0.13

%

Time deposits

 

 

1,231,641

 

 

 

6,705

 

 

2.16

%

 

 

1,130,308

 

 

 

5,046

 

 

1.77

%

Total interest-bearing deposits

 

 

2,895,665

 

 

 

9,325

 

 

1.28

%

 

 

2,581,756

 

 

 

7,115

 

 

1.09

%

Federal Home Loan Bank advances

 

 

371,730

 

 

 

1,917

 

 

2.05

%

 

 

360,891

 

 

 

1,719

 

 

1.89

%

Other borrowed funds

 

 

80,039

 

 

 

759

 

 

3.76

%

 

 

65,226

 

 

 

800

 

 

4.86

%

Total borrowings

 

 

451,769

 

 

 

2,676

 

 

2.35

%

 

 

426,117

 

 

 

2,519

 

 

2.35

%

Total interest-bearing liabilities

 

$

3,347,434

 

 

$

12,001

 

 

1.42

%

 

$

3,007,873

 

 

$

9,634

 

 

1.27

%

Non-interest-bearing demand deposits

 

 

1,288,960

 

 

 

 

 

 

 

 

 

1,194,445

 

 

 

 

 

 

 

Other liabilities

 

 

44,907

 

 

 

 

 

 

 

 

 

54,231

 

 

 

 

 

 

 

Total stockholders’ equity

 

 

745,745

 

 

 

 

 

 

 

 

 

639,885

 

 

 

 

 

 

 

TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY

 

$

5,427,046

 

 

 

 

 

 

 

 

$

4,896,434

 

 

 

 

 

 

 

Net interest spread(3)

 

 

 

 

 

 

 

 

3.86

%

 

 

 

 

 

 

 

 

4.27

%

Net interest income

 

 

 

 

$

53,914

 

 

 

 

 

 

 

$

53,261

 

 

 

Net interest margin(4)

 

 

 

 

 

 

 

 

4.32

%

 

 

 

 

 

 

 

 

4.69

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net loan accretion impact on margin

 

 

 

 

$

5,418

 

 

0.43

%

 

 

 

 

$

6,351

 

 

0.56

%

(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.

 

 

BYLINE BANCORP, INC. AND SUBSIDIARIES

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

 

 

 

For the Year Ended December 31,

 

 

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

 

$

43,636

 

 

$

1,018

 

 

2.33

%

 

$

76,710

 

 

$

964

 

 

1.26

%

Loans and leases(1)

 

 

3,741,607

 

 

 

235,501

 

 

6.29

%

 

 

2,947,458

 

 

 

184,972

 

 

6.28

%

Taxable securities

 

 

981,453

 

 

 

26,509

 

 

2.70

%

 

 

817,360

 

 

 

19,920

 

 

2.44

%

Tax-exempt securities(2)

 

 

71,173

 

 

 

1,786

 

 

2.51

%

 

 

44,245

 

 

 

1,095

 

 

2.47

%

Total interest-earning assets

 

$

4,837,869

 

 

$

264,814