Byline Bancorp, Inc. Reports First Quarter 2020 Financial Results

First Quarter 2020 Highlights

  • Net income of $3.0 million, or $0.07 per diluted share
    • Increase in provision of $0.26 per diluted share compared to prior quarter
    • Decrease in gain on sale of loans of $0.10 per diluted share compared to prior quarter
  • Net interest margin of 4.17%
  • Return on average assets of 0.21%
  • Efficiency ratio of 67.16% for the first quarter of 2020
  • Originated loans and leases increased $149.0 million, or 5.3%, from December 31, 2019
  • Total assets of $5.7 billion
  • Common Equity Tier 1 to risk weighted assets of 12.24%

CHICAGO--()--Byline Bancorp, Inc. (the “Company” or “Byline”)(NYSE: BY), the parent company of Byline Bank (the “Bank”), today reported net income of $3.0 million, or $0.07 per diluted share, for the first quarter of 2020, compared with net income of $15.9 million, or $0.41 per diluted share, for the fourth quarter of 2019, and net income of $12.6 million, or $0.34 per diluted share, for the first quarter of 2019.

Adjusted net income, which is net income excluding merger-related expenses, core system conversion expenses, and impairment charges on assets held for sale, net of tax, was $3.5 million, or $0.09 per adjusted diluted share1, for the first quarter of 2020, compared with $16.1 million, or $0.42 per adjusted diluted share, for the fourth quarter of 2019, and $14.0 million, or $0.38 per adjusted diluted share, for the first quarter of 2019. 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, “Since the emergence of the COVID-19 pandemic, we have been focused on protecting the health and safety of our employees and clients, while constructively working with our borrowers to identify the best solutions for helping them manage through this crisis. We have put in place a number of relief programs to support our clients, including participating in the Small Business Administration’s (“SBA”) Paycheck Protection Program (“PPP”). As one of the largest SBA lenders in the country, we were able to provide our clients with access to the PPP, and through April 29th, we have received approvals on $716.4 million in PPP loans with $385.8 million funded to date. I’m proud of the work our team did during this challenging time to establish our PPP process and support our clients."

“Although the duration and severity of the COVID-19 pandemic is uncertain, we are well positioned from a capital and liquidity standpoint to support our clients and the communities we serve during this unprecedented period. Byline is committed to being a source of strength to our customers, employees, and communities during this uncertain time,” 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.

Byline’s Preparations and Response to Pandemic

As part of our ongoing business continuity and risk management efforts, we had previously developed a detailed plan and action measures related to a possible pandemic scenario. Our incident response team was activated on February 29, 2020 and began implementing our plan. We initiated a series of measures to ensure the safety of employees, customers, and communities, to support customer needs, and to limit operational disruptions. Our Board of Directors and management teams continue to monitor and, when appropriate, make changes to our planned response. To date we have:

  • Maximized social distancing protocols by augmenting business hours and the locations of employee teams.
    • 100% of our non-retail employees have the ability to work from home.
    • Drive-thru only locations for 25 branches, 16 full service branches with lobby hours by appointment, and 19 branches temporarily closed.
  • Refreshed and analyzed our liquidity, funding, and capital stress forecasts including updated risk assumptions.
  • Proactively engaged our customers and borrowers to identify short-term cash flow and other financial needs.
    • Approved approximately $395.7 million in payment deferrals to date, or 10.3% of loans and leases at March 31, 2020.
    • Established customer strategy to process PPP loans efficiently through our existing SBA platform.
      • Registered over 1,400 loans totaling $372.7 million during phase one.
      • Phase two began on April 27, 2020, with over 2,150 loans registered representing $343.7 million.
    • Waived or refunded certain fees, including early withdrawal fees on time deposits.
  • Took action to pause common share repurchase activities amid the uncertainty of the pandemic.
  • Continued to serve our customers through our call center, online, and mobile banking platforms.

STATEMENTS OF OPERATIONS

Net Interest Income

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

 

 

Three Months Ended

 

(dollars in thousands)

 

March 31,
2020

 

 

December 31,
2019

 

 

September 30,
2019

 

 

June 30,
2019

 

 

March 31,
2019

 

INTEREST AND DIVIDEND INCOME

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest and fees on loans and leases

 

$

54,158

 

 

$

58,203

 

 

$

63,391

 

 

$

59,524

 

 

$

54,383

 

Interest on securities

 

 

8,016

 

 

 

7,212

 

 

 

7,040

 

 

 

6,665

 

 

 

6,102

 

Other interest and dividend income

 

 

992

 

 

 

500

 

 

 

598

 

 

 

571

 

 

 

625

 

Total interest and dividend income

 

 

63,166

 

 

 

65,915

 

 

 

71,029

 

 

 

66,760

 

 

 

61,110

 

INTEREST EXPENSE

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Deposits

 

 

7,804

 

 

 

9,325

 

 

 

9,618

 

 

 

9,306

 

 

 

8,076

 

Short-term borrowings

 

 

1,897

 

 

 

1,989

 

 

 

2,835

 

 

 

2,265

 

 

 

2,166

 

Junior subordinated debentures issued to capital trusts

 

 

640

 

 

 

687

 

 

 

738

 

 

 

741

 

 

 

783

 

Total interest expense

 

 

10,341

 

 

 

12,001

 

 

 

13,191

 

 

 

12,312

 

 

 

11,025

 

Net interest income

 

$

52,825

 

 

$

53,914

 

 

$

57,838

 

 

$

54,448

 

 

$

50,085

 

The following table presents the average interest-earning assets and average interest-bearing liabilities for the periods indicated:

 

 

For the Three Months Ended

 

 

 

March 31, 2020

 

 

December 31, 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

 

$

38,934

 

 

$

157

 

 

 

1.63

%

 

$

38,624

 

 

$

220

 

 

 

2.25

%

Loans and leases(1)

 

 

3,799,213

 

 

 

54,158

 

 

 

5.73

%

 

 

3,807,731

 

 

 

58,203

 

 

 

6.06

%

Taxable securities

 

 

1,175,120

 

 

 

8,316

 

 

 

2.85

%

 

 

1,025,975

 

 

 

6,963

 

 

 

2.69

%

Tax-exempt securities(2)

 

 

84,679

 

 

 

535

 

 

 

2.54

%

 

 

84,640

 

 

 

529

 

 

 

2.48

%

Total interest-earning assets

 

$

5,097,946

 

 

$

63,166

 

 

 

4.98

%

 

$

4,956,970

 

 

$

65,915

 

 

 

5.28

%

Allowance for loan and lease losses

 

 

(33,664

)

 

 

 

 

 

 

 

 

 

 

(32,688

)

 

 

 

 

 

 

 

 

All other assets

 

 

501,670

 

 

 

 

 

 

 

 

 

 

 

502,764

 

 

 

 

 

 

 

 

 

TOTAL ASSETS

 

$

5,565,952

 

 

 

 

 

 

 

 

 

 

$

5,427,046

 

 

 

 

 

 

 

 

 

LIABILITIES AND STOCKHOLDERS’ EQUITY

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Deposits

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest checking

 

$

338,905

 

 

$

260

 

 

 

0.31

%

 

$

399,065

 

 

$

612

 

 

 

0.61

%

Money market accounts

 

 

962,205

 

 

 

2,214

 

 

 

0.93

%

 

 

790,565

 

 

 

1,945

 

 

 

0.98

%

Savings

 

 

480,270

 

 

 

61

 

 

 

0.05

%

 

 

474,394

 

 

 

63

 

 

 

0.05

%

Time deposits

 

 

1,113,596

 

 

 

5,269

 

 

 

1.90

%

 

 

1,231,641

 

 

 

6,705

 

 

 

2.16

%

Total interest-bearing deposits

 

 

2,894,976

 

 

 

7,804

 

 

 

1.08

%

 

 

2,895,665

 

 

 

9,325

 

 

 

1.28

%

Short-term borrowings

 

 

521,108

 

 

 

1,897

 

 

 

1.46

%

 

 

414,515

 

 

 

1,989

 

 

 

1.90

%

Junior subordinated debentures issued to capital trusts

 

 

37,385

 

 

 

640

 

 

 

6.88

%

 

 

37,254

 

 

 

687

 

 

 

7.32

%

Total borrowings

 

 

558,493

 

 

 

2,537

 

 

 

1.83

%

 

 

451,769

 

 

 

2,676

 

 

 

2.35

%

Total interest-bearing liabilities

 

$

3,453,469

 

 

$

10,341

 

 

 

1.20

%

 

$

3,347,434

 

 

$

12,001

 

 

 

1.42

%

Non-interest-bearing demand deposits

 

 

1,298,800

 

 

 

 

 

 

 

 

 

 

 

1,288,960

 

 

 

 

 

 

 

 

 

Other liabilities

 

 

48,256

 

 

 

 

 

 

 

 

 

 

 

44,907

 

 

 

 

 

 

 

 

 

Total stockholders’ equity

 

 

765,427

 

 

 

 

 

 

 

 

 

 

 

745,745

 

 

 

 

 

 

 

 

 

TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY

 

$

5,565,952

 

 

 

 

 

 

 

 

 

 

$

5,427,046

 

 

 

 

 

 

 

 

 

Net interest spread(3)

 

 

 

 

 

 

 

 

 

 

3.78

%

 

 

 

 

 

 

 

 

 

 

3.86

%

Net interest income

 

 

 

 

 

$

52,825

 

 

 

 

 

 

 

 

 

 

$

53,914

 

 

 

 

 

Net interest margin(4)

 

 

 

 

 

 

 

 

 

 

4.17

%

 

 

 

 

 

 

 

 

 

 

4.32

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net loan accretion impact on margin

 

 

 

 

 

$

3,671

 

 

 

0.29

%

 

 

 

 

 

$

5,418

 

 

 

0.43

%

(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 first quarter of 2020 was $52.8 million, a decrease of $1.1 million, or 2.0%, from $53.9 million for the fourth quarter of 2019.

The decrease in net interest income was primarily due to:

  • A decrease of $4.0 million in interest and fees on loans and leases, mainly due to a $1.7 million decrease in accretion income on acquired loans.

Partially offset by:

  • A decrease of $1.5 million in interest expense on deposits, as a result of lower average time deposit balances and cost attributable to maturities of higher-rate time deposits; and
  • An increase of $1.3 million in interest income on securities principally as a result of purchases of mortgage-backed securities during the quarter.

Net interest margin for the first quarter of 2020 was 4.17%, a decrease of 15 basis points compared to 4.32% for the fourth quarter of 2019. Total net accretion income on acquired loans contributed 29 basis points to the net interest margin for the first quarter of 2020 compared to 43 basis points for the fourth quarter of 2019, a decrease of 14 basis points. The net interest margin decrease during the first quarter of 2020 was primarily driven by decreased loan and lease yields largely resulting from decreased loan accretion income partly offset by a decrease in the cost of funds as a result of decreases in short-term rates.

The average cost of total deposits was 0.75% for the first quarter of 2020, a decrease of 13 basis points compared to the fourth quarter of 2019, mainly due to a lower average cost of time deposits and interest-bearing checking accounts as well as a favorable change in deposit mix. Average money market accounts grew by $171.6 million while average time deposits decreased by $118.0 million.

Provision for Loan and Lease Losses

The provision for loan and lease losses was $14.5 million for the first quarter of 2020, an increase of $10.1 million compared to $4.4 million for the fourth quarter of 2019. The first quarter included allocations of $10.3 million for originated loans and leases, $2.7 million for acquired non-impaired loans, and $1.5 million for acquired impaired loans. The provision during the first quarter of 2020 for originated loans reflects increased impairments on commercial and industrial and commercial real estate loans, growth in the commercial and industrial portfolio during the quarter, and allocations of $6.3 million made to address the impact of the COVID-19 pandemic.

Non-interest Income

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

 

 

Three Months Ended

 

(dollars in thousands)

 

March 31,
2020

 

 

December 31,
2019

 

 

September 30,
2019

 

 

June 30,
2019

 

 

March 31,
2019

 

NON-INTEREST INCOME

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Fees and service charges on deposits

 

$

1,673

 

 

$

1,635

 

 

$

1,612

 

 

$

1,441

 

 

$

1,770

 

Loan servicing revenue

 

 

2,758

 

 

 

2,834

 

 

 

2,692

 

 

 

2,630

 

 

 

2,539

 

Loan servicing asset revaluation

 

 

(3,064

)

 

 

(2,545

)

 

 

(1,610

)

 

 

(1,223

)

 

 

(1,261

)

ATM and interchange fees

 

 

1,216

 

 

 

1,150

 

 

 

973

 

 

 

945

 

 

 

717

 

Net gains on sales of securities available-for-sale

 

 

1,375

 

 

 

 

 

 

178

 

 

 

973

 

 

 

 

Change in fair value of equity securities, net

 

 

(619

)

 

 

381

 

 

 

(15

)

 

 

551

 

 

 

499

 

Net gains on sales of loans

 

 

4,773

 

 

 

8,735

 

 

 

9,405

 

 

 

7,472

 

 

 

6,233

 

Wealth management and trust income

 

 

669

 

 

 

704

 

 

 

653

 

 

 

626

 

 

 

595

 

Other non-interest income

 

 

392

 

 

 

1,622

 

 

 

918

 

 

 

768

 

 

 

896

 

Total non-interest income

 

$

9,173

 

 

$

14,516

 

 

$

14,806

 

 

$

14,183

 

 

$

11,988

 

Non-interest income for the first quarter of 2020 was $9.2 million, a decrease of $5.3 million, or 36.8%, compared to $14.5 million for the fourth quarter of 2019.

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

  • A decrease of $4.0 million in net gains on sales of loans, mainly due to a decrease in volume of sales of government guaranteed loans;
  • A decrease of $1.2 million in other non-interest income, mostly due to a decline in the fair value of non-designated swaps; and
  • A decrease in the change in fair value of equity securities, net, of $1.0 million due to a decrease in the fair value of those securities.

Partially offset by:

  • An increase of $1.4 million in net gains on sales of securities available-for-sale as a result of sales during the quarter compared to no sales in the prior quarter.

During the first quarter of 2020, the Company sold $61.0 million of U.S. government guaranteed loans compared to $101.5 million during the fourth quarter of 2019. The decrease in sales is principally driven by a decrease in originations as well as a decrease in premiums as a result of the COVID-19 pandemic.

Non-interest Expense

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

 

 

Three Months Ended

 

(dollars in thousands)

 

March 31,
2020

 

 

December 31,
2019

 

 

September 30,
2019

 

 

June 30,
2019

 

 

March 31,
2019

 

NON-INTEREST EXPENSE

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Salaries and employee benefits

 

$

24,666

 

 

$

24,228

 

 

$

24,537

 

 

$

23,652

 

 

$

22,892

 

Occupancy and equipment expense, net

 

 

5,524

 

 

 

5,241

 

 

 

4,512

 

 

 

5,069

 

 

 

4,949

 

Loan and lease related expenses

 

 

1,311

 

 

 

2,648

 

 

 

1,949

 

 

 

1,841

 

 

 

1,577

 

Legal, audit and other professional fees

 

 

2,334

 

 

 

2,340

 

 

 

4,066

 

 

 

2,981

 

 

 

2,066

 

Data processing

 

 

2,665

 

 

 

2,678

 

 

 

4,062

 

 

 

3,849

 

 

 

3,144

 

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

 

 

519

 

 

 

122

 

 

 

95

 

 

 

252

 

 

 

196

 

Other intangible assets amortization expense

 

 

1,893

 

 

 

2,002

 

 

 

2,003

 

 

 

1,959

 

 

 

1,773

 

Other non-interest expense

 

 

4,615

 

 

 

4,435

 

 

 

4,224

 

 

 

4,351

 

 

 

4,082

 

Total non-interest expense

 

$

43,527

 

 

$

43,694

 

 

$

45,448

 

 

$

43,954

 

 

$

40,679

 

Non-interest expense for the first quarter of 2020 was $43.5 million, a decrease of $167,000, or 0.4%, from $43.7 million for the fourth quarter of 2019.

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

  • A decrease of $1.3 million in loan and lease related expenses due to lower loan expenses on government guaranteed loans and lower loan collection expense.

Partially offset by:

  • An increase of $438,000 in salaries and employee benefits, mainly due to higher payroll taxes and increased employer costs related to benefits, partially offset by a decrease in commissions; and
  • An increase of $397,000 in net loss recognized on other real estate owned and other related expenses mostly due to a decrease in gains recognized on other real estate owned, partially offset by lower real estate tax expenses.

The Company’s efficiency ratio was 67.16% for the first quarter of 2020, compared with 60.93% for the fourth 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 66.00% for the first quarter of 2020, compared with 60.51% for the fourth quarter of 2019. The increase in the efficiency ratio was primarily driven by the decline in non-interest income.

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 $1.1 million during the first quarter of 2020, an effective tax rate of 26.1%, compared to $4.5 million during the fourth quarter of 2019, an effective tax rate of 22.1%. The effective tax rate during the fourth quarter of 2019 benefited from the recognition of tax assets associated with other real estate owned.

STATEMENTS OF FINANCIAL CONDITION

Total assets were $5.7 billion at March 31, 2020, an increase of $212.9 million compared to $5.5 billion at December 31, 2019, and an increase of $724.8 million compared to $5.0 billion at March 31, 2019. The increase from March 31, 2019 was mostly due to the assets acquired through the Oak Park River Forest acquisition.

The current quarter increase was primarily due to:

  • An increase in securities of $112.6 million, reflecting purchases of securities during the quarter; and
  • An increase in loans and leases of $74.6 million, mostly due to an increase of $149.0 million in our originated loan portfolio, partially offset by a decrease of $74.4 million in our acquired loan portfolios as a result of paydowns.

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

 

 

March 31, 2020

 

 

December 31, 2019

 

 

March 31, 2019

 

(dollars in thousands)

 

Amount

 

 

% of Total

 

 

Amount

 

 

% of Total

 

 

Amount

 

 

% of Total

 

Originated loans and leases

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Commercial real estate

 

$

839,244

 

 

 

21.7

%

 

$

792,263

 

 

 

20.9

%

 

$

738,832

 

 

 

20.7

%

Residential real estate

 

 

480,946

 

 

 

12.5

%

 

 

483,072

 

 

 

12.8

%

 

 

494,877

 

 

 

13.9

%

Construction, land development, and other land

 

 

242,001

 

 

 

6.3

%

 

 

235,794

 

 

 

6.2

%

 

 

181,427

 

 

 

5.1

%

Commercial and industrial

 

 

1,263,688

 

 

 

32.7

%

 

 

1,160,996

 

 

 

30.7

%

 

 

900,709

 

 

 

25.2

%

Installment and other

 

 

4,594

 

 

 

0.1

%

 

 

5,372

 

 

 

0.1

%

 

 

11,082

 

 

 

0.3

%

Leasing financing receivables

 

 

154,173

 

 

 

4.0

%

 

 

158,155

 

 

 

4.2

%

 

 

160,607

 

 

 

4.5

%

Total originated loans and leases

 

$

2,984,646

 

 

 

77.3

%

 

$

2,835,652

 

 

 

74.9

%

 

$

2,487,534

 

 

 

69.7

%

Acquired impaired loans

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Commercial real estate

 

$

127,895

 

 

 

3.3

%

 

$

135,914

 

 

 

3.6

%

 

$

141,199

 

 

 

4.0

%

Residential real estate

 

 

94,198

 

 

 

2.5

%

 

 

100,223

 

 

 

2.7

%

 

 

106,764

 

 

 

3.0

%

Construction, land development, and other land

 

 

5,291

 

 

 

0.1

%

 

 

5,373

 

 

 

0.1

%

 

 

3,111

 

 

 

0.1

%

Commercial and industrial

 

 

15,808

 

 

 

0.4

%

 

 

16,909

 

 

 

0.4

%

 

 

11,963

 

 

 

0.3

%

Installment and other

 

 

236

 

 

 

0.0

%

 

 

249

 

 

 

0.0

%

 

 

374

 

 

 

0.0

%

Total acquired impaired loans

 

$

243,428

 

 

 

6.3

%

 

$

258,668

 

 

 

6.8

%

 

$

263,411

 

 

 

7.4

%

Acquired non-impaired loans and leases

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Commercial real estate

 

$

327,820

 

 

 

8.5

%

 

$

348,365

 

 

 

9.2

%

 

$

382,252

 

 

 

10.7

%

Residential real estate

 

 

118,853

 

 

 

3.1

%

 

 

128,527

 

 

 

3.4

%

 

 

97,395

 

 

 

2.8

%

Construction, land development, and

other land

 

 

30,484

 

 

 

0.8

%

 

 

37,490

 

 

 

1.0

%

 

 

29,121

 

 

 

0.8

%

Commercial and industrial

 

 

135,063

 

 

 

3.5

%

 

 

153,660

 

 

 

4.1

%

 

 

277,146

 

 

 

7.8

%

Installment and other

 

 

891

 

 

 

0.0

%

 

 

944

 

 

 

0.0

%

 

 

1,346

 

 

 

0.0

%

Leasing financing receivables

 

 

19,074

 

 

 

0.5

%

 

 

22,355

 

 

 

0.6

%

 

 

29,361

 

 

 

0.8

%

Total acquired non-impaired loans and leases

 

$

632,185

 

 

 

16.4

%

 

$

691,341

 

 

 

18.3

%

 

$

816,621

 

 

 

22.9

%

Total loans and leases

 

$

3,860,259

 

 

 

100.0

%

 

$

3,785,661

 

 

 

100.0

%

 

$

3,567,566

 

 

 

100.0

%

Allowance for loan and lease losses

 

 

(41,840

)

 

 

 

 

 

 

(31,936

)

 

 

 

 

 

 

(27,106

)

 

 

 

 

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

 

$

3,818,419

 

 

 

 

 

 

$

3,753,725

 

 

 

 

 

 

$

3,540,460

 

 

 

 

 

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:

(dollars in thousands)

 

March 31,
2020

 

 

December 31,
2019

 

 

September 30,
2019

 

 

June 30,
2019

 

 

March 31,
2019

 

Non-performing assets:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Non-accrual loans and leases

 

$

48,964

 

 

$

36,272

 

 

$

39,528

 

 

$

34,027

 

 

$

28,539

 

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

 

 

 

 

 

 

 

 

 

 

 

996

 

 

 

 

Accruing troubled debt restructured loans

 

 

1,725

 

 

 

1,771

 

 

 

2,204

 

 

 

1,529

 

 

 

1,921

 

Total non-performing loans and leases

 

 

50,689

 

 

 

38,043

 

 

 

41,732

 

 

 

36,552

 

 

 

30,460

 

Other real estate owned

 

 

9,273

 

 

 

9,896

 

 

 

6,502

 

 

 

6,531

 

 

 

4,595

 

Total non-performing assets

 

$

59,962

 

 

$

47,939

 

 

$

48,234

 

 

$

43,083

 

 

$

35,055

 

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

 

 

1.31

%

 

 

1.00

%

 

 

1.09

%

 

 

0.95

%

 

 

0.85

%

Total non-performing assets as a percentage of total assets

 

 

1.05

%

 

 

0.87

%

 

 

0.89

%

 

 

0.80

%

 

 

0.70

%

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

leases

 

 

82.54

%

 

 

83.95

%

 

 

75.68

%

 

 

85.17

%

 

 

88.99

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Non-accrual loans guaranteed

 

$

4,957

 

 

$

4,232

 

 

$

4,167

 

 

$

4,723

 

 

$

5,070

 

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

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Accruing troubled debt restructured loans guaranteed

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total non-performing loans guaranteed

 

$

4,957

 

 

$

4,232

 

 

$

4,167

 

 

$

4,723

 

 

$

5,070

 

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

 

 

1.18

%

 

 

0.89

%

 

 

0.98

%

 

 

0.82

%

 

 

0.71

%

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

 

 

0.96

%

 

 

0.79

%

 

 

0.81

%

 

 

0.71

%

 

 

0.60

%

Variances in non-performing assets were:

  • Non-performing loans and leases were $50.7 million at March 31, 2020, an increase of $12.7 million from $38.0 million at December 31, 2019, principally due to increases, as follows:
    • $5.1 million in commercial and industrial loans,
    • $3.8 million in commercial real estate loans, and
    • $2.6 million in construction, land development and other land loans; and
  • Other real estate owned was $9.3 million at March 31, 2020, a decrease of $623,000 from $9.9 million at December 31, 2019 due to sales and valuation adjustments.

U.S. government guaranteed balances of non-performing loans were $5.0 million at March 31, 2020 and $4.2 million at December 31, 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

 

(dollars in thousands)

 

March 31,
2020

 

 

December 31,
2019

 

 

September 30,
2019

 

 

June 30,
2019

 

 

March 31,
2019

 

Allowance for loan and lease losses, beginning of period

 

$

31,936

 

 

$

31,585

 

 

$

31,132

 

 

$

27,106

 

 

$

25,201

 

Provision for loan and lease losses

 

 

14,455

 

 

 

4,387

 

 

 

5,931

 

 

 

6,391

 

 

 

3,999

 

Net charge-offs of loans and leases

 

 

(4,551

)

 

 

(4,036

)

 

 

(5,478

)

 

 

(2,365

)

 

 

(2,094

)

Allowance for loan and lease losses, end of period

 

$

41,840

 

 

$

31,936

 

 

$

31,585

 

 

$

31,132

 

 

$

27,106

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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

 

 

1.08

%

 

 

0.84

%

 

 

0.82

%

 

 

0.81

%

 

 

0.76

%

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

 

 

0.48

%

 

 

0.42

%

 

 

0.56

%

 

 

0.25

%

 

 

0.24

%

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

 

3.18x

 

 

1.09x

 

 

1.08x

 

 

2.70x

 

 

1.91x

 

The allowance for loan and lease losses as a percentage of total loans and leases held for investment increased to 1.08% at March 31, 2020 compared to 0.84% at December 31, 2019 and 0.76% at March 31, 2019.

In June 2016, the Financial Accounting Standards Board (“FASB”) issued new guidance on the recognition of credit losses which replaces the incurred loss impairment methodology with a methodology that reflects expected credit losses. In November 2019, the FASB delayed the effective date of the standard for smaller reporting companies, which includes emerging growth companies. Assuming the Company remains an emerging growth company, the standard 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 first quarter of 2020 were $4.6 million, or 0.48% of average loans and leases, on an annualized basis, an increase of $515,000 compared to $4.0 million, or 0.42% of average loans and leases, during the fourth quarter of 2019, and an increase of $2.5 million 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 first quarter of 2020 included $3.4 million in the unguaranteed portion of U.S. government guaranteed loans, while net charge-offs for the fourth quarter of 2019 included $3.6 million and first quarter of 2019 included $1.7 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:

(dollars in thousands)

 

March 31,
2020

 

 

December 31,
2019

 

 

September 30,
2019

 

 

June 30,
2019

 

 

March 31,
2019

 

Non-interest-bearing demand deposits

 

$

1,290,896

 

 

$

1,279,641

 

 

$

1,221,431

 

 

$

1,240,375

 

 

$

1,163,255

 

Interest-bearing checking accounts

 

 

355,678

 

 

 

338,185

 

 

 

372,049

 

 

 

345,081

 

 

 

305,393

 

Money market demand accounts

 

 

1,104,276

 

 

 

881,387

 

 

 

745,154

 

 

 

728,954

 

 

 

611,634

 

Other savings

 

 

486,131

 

 

 

475,839

 

 

 

471,878

 

 

 

480,756

 

 

 

468,524

 

Time deposits (below $250,000)

 

 

800,759

 

 

 

916,723

 

 

 

966,866

 

 

 

980,162

 

 

 

967,999

 

Time deposits ($250,000 and above)

 

 

201,096

 

 

 

255,802

 

 

 

302,936

 

 

 

284,915

 

 

 

291,711

 

Total deposits

 

$

4,238,836

 

 

$

4,147,577

 

 

$

4,080,314

 

 

$

4,060,243

 

 

$

3,808,516

 

Total deposits were $4.2 billion at March 31, 2020, an increase of $91.3 million compared to December 31, 2019, an increase of 2.2%. Non-interest-bearing deposits were 30.5% of total deposits at March 31, 2020 compared to 30.9% at December 31, 2019.

The increase in the current quarter was primarily due to:

  • An increase in money market demand deposits of $222.9 million, from $881.4 million at December 31, 2019 to $1.1 billion at March 31, 2020, largely driven by growth in business and brokered account balances.

Partially offset by:

  • A decrease in time deposits of $170.7 million, from $1.2 billion at December 31, 2019 to $1.0 billion at March 31, 2020, principally driven by decreases in personal and brokered certificates.

Total borrowings and other liabilities were $733.3 million at March 31, 2020, an increase of $109.1 million from $624.1 million at December 31, 2019, driven by an increase in short-term borrowings of $101.0 million as a result of the Company testing liquidity resources.

Stockholders’ Equity

Total stockholders’ equity was $762.7 million at March 31, 2020, an increase of $12.6 million from $750.1 million at December 31, 2019. The increase was due to the increase in accumulated other comprehensive income reflecting the unrealized gains in our available-for-sale securities portfolio in addition to net income generated during the quarter less dividends declared.

Stockholders’ equity increased $93.9 million from $668.7 million at March 31, 2019. The increase was mainly due to the stock consideration issued in connection with the Oak Park River Forest acquisition as well as net income generated during the period.

The Company repurchased 118,486 shares of its common stock at an average price of $14.08 per share during the first quarter of 2020 under its board approved stock repurchase program announced in the fourth quarter of 2019. The Company is authorized to purchase 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 program was paused in March 2020.

The following table presents the actual regulatory capital dollar amounts and ratios of the Company and Byline Bank as of March 31, 2020:

 

 

Actual

 

 

Minimum Capital

Required

 

 

Required to be

Considered

Well Capitalized

 

March 31, 2020

 

Amount

 

 

Ratio

 

 

Amount

 

 

Ratio

 

 

Amount

 

 

Ratio

 

Total capital to risk weighted assets:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Company

 

$

641,540

 

 

 

14.50

%

 

$

353,933

 

 

 

8.00

%

 

N/A

 

 

N/A

 

Bank

 

 

615,278

 

 

 

13.93

%

 

 

353,391

 

 

 

8.00

%

 

$

441,739

 

 

 

10.00

%

Tier 1 capital to risk weighted assets:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Company

 

$

598,342

 

 

 

13.52

%

 

$

265,450

 

 

 

6.00

%

 

N/A

 

 

N/A

 

Bank

 

 

572,080

 

 

 

12.95

%

 

 

265,043

 

 

 

6.00

%

 

$

353,391

 

 

 

8.00

%

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

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Company

 

$

541,404

 

 

 

12.24

%

 

$

199,087

 

 

 

4.50

%

 

N/A

 

 

N/A

 

Bank

 

 

572,080

 

 

 

12.95

%

 

 

198,782

 

 

 

4.50

%

 

$

287,130

 

 

 

6.50

%

Tier 1 capital to average assets:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Company

 

$

598,342

 

 

 

11.18

%

 

$

214,094

 

 

 

4.00

%

 

N/A

 

 

N/A

 

Bank

 

 

572,080

 

 

 

10.70

%

 

 

213,950

 

 

 

4.00

%

 

$

267,437

 

 

 

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, May 1, 2020 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 May 15, 2020 by dialing (877) 344-7529; passcode: 10142538.

A slide presentation relating to the first quarter 2020 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 $5.7 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.

The COVID-19 pandemic is adversely affecting us, our employees, customers, counterparties and third-party service providers, and the ultimate extent of the impacts on our business, financial position, results of operations, liquidity, and prospects is uncertain. Continued deterioration in general business and economic conditions, including further increases in unemployment rates, or turbulence in U.S. or global financial markets could adversely affect our revenues and the values of our assets and liabilities, reduce the availability of funding, lead to a tightening of credit, and further increase stock price volatility. In addition, changes to statutes, regulations, or regulatory policies or practices as a result of, or in response to COVID-19, could affect us in substantial and unpredictable ways.

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)

(dollars in thousands)

 

March 31,
2020

 

 

December 31,
2019

 

 

September 30,
2019

 

 

June 30,
2019

 

 

March 31,
2019

 

ASSETS

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cash and due from banks

 

$

45,233

 

 

$

48,228

 

 

$

75,275

 

 

$

57,513

 

 

$

50,026

 

Interest bearing deposits with other banks

 

 

74,386

 

 

 

32,509

 

 

 

33,564

 

 

 

31,802

 

 

 

31,971

 

Cash and cash equivalents

 

 

119,619

 

 

 

80,737

 

 

 

108,839

 

 

 

89,315

 

 

 

81,997

 

Equity and other securities, at fair value

 

 

7,413

 

 

 

8,031

 

 

 

7,648

 

 

 

7,662

 

 

 

7,216

 

Securities available-for-sale, at fair value

 

 

1,299,483

 

 

 

1,186,292

 

 

 

1,031,933

 

 

 

969,029

 

 

 

964,553

 

Securities held-to-maturity, at amortized cost

 

 

4,408

 

 

 

4,412

 

 

 

4,417

 

 

 

4,421

 

 

 

4,425

 

Restricted stock, at cost

 

 

24,197

 

 

 

22,127

 

 

 

24,331

 

 

 

22,937

 

 

 

19,202

 

Loans held for sale

 

 

13,299

 

 

 

11,732

 

 

 

7,176

 

 

 

18,473

 

 

 

510

 

Loans and leases:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Loans and leases

 

 

3,860,259

 

 

 

3,785,661

 

 

 

3,831,090

 

 

 

3,863,148

 

 

 

3,567,566

 

Allowance for loan and lease losses

 

 

(41,840

)

 

 

(31,936

)

 

 

(31,585

)

 

 

(31,132

)

 

 

(27,106

)

Net loans and leases

 

 

3,818,419

 

 

 

3,753,725

 

 

 

3,799,505

 

 

 

3,832,016

 

 

 

3,540,460

 

Servicing assets, at fair value

 

 

17,800

 

 

 

19,471

 

 

 

19,939

 

 

 

19,760

 

 

 

19,534

 

Premises and equipment, net

 

 

96,446

 

 

 

96,140

 

 

 

96,006

 

 

 

96,588

 

 

 

97,069

 

Other real estate owned, net

 

 

9,273

 

 

 

9,896

 

 

 

6,502

 

 

 

6,531

 

 

 

4,595

 

Goodwill and other intangible assets, net

 

 

178,362

 

 

 

180,255

 

 

 

179,543

 

 

 

181,546

 

 

 

159,823

 

Bank-owned life insurance

 

 

9,898

 

 

 

9,750

 

 

 

9,699

 

 

 

9,634

 

 

 

6,087

 

Deferred tax assets, net

 

 

33,845

 

 

 

38,315

 

 

 

33,388

 

 

 

35,737

 

 

 

30,534

 

Accrued interest receivable and other assets

 

 

102,292

 

 

 

100,926

 

 

 

109,352

 

 

 

97,587

 

 

 

73,920

 

Total assets

 

$

5,734,754

 

 

$

5,521,809

 

 

$

5,438,278

 

 

$

5,391,236

 

 

$

5,009,925

 

LIABILITIES AND STOCKHOLDERS’ EQUITY

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

LIABILITIES

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Non-interest-bearing demand deposits

 

$

1,290,896

 

 

$

1,279,641

 

 

$

1,221,431

 

 

$

1,240,375

 

 

$

1,163,255

 

Interest-bearing deposits

 

 

2,947,940

 

 

 

2,867,936

 

 

 

2,858,883

 

 

 

2,819,868

 

 

 

2,645,261

 

Total deposits

 

 

4,238,836

 

 

 

4,147,577

 

 

 

4,080,314

 

 

 

4,060,243

 

 

 

3,808,516

 

Short-term borrowings

 

 

640,647

 

 

 

539,638

 

 

 

538,290

 

 

 

532,885

 

 

 

459,369

 

Junior subordinated debentures issued to

capital trusts, net

 

 

37,462

 

 

 

37,334

 

 

 

37,207

 

 

 

37,059

 

 

 

36,912

 

Accrued expenses and other liabilities

 

 

55,142

 

 

 

47,145

 

 

 

46,601

 

 

 

43,374

 

 

 

36,379

 

Total liabilities

 

 

4,972,087

 

 

 

4,771,694

 

 

 

4,702,412

 

 

 

4,673,561

 

 

 

4,341,176

 

STOCKHOLDERS’ EQUITY

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Preferred stock

 

 

10,438

 

 

 

10,438

 

 

 

10,438

 

 

 

10,438

 

 

 

10,438

 

Common stock

 

 

380

 

 

 

379

 

 

 

378

 

 

 

378

 

 

 

362

 

Additional paid-in capital

 

 

582,517

 

 

 

580,965

 

 

 

579,564

 

 

 

578,828

 

 

 

548,005

 

Retained earnings

 

 

160,652

 

 

 

159,033

 

 

 

144,525

 

 

 

129,379

 

 

 

116,363

 

Accumulated other comprehensive income

(loss), net of tax

 

 

10,348

 

 

 

(700

)

 

 

961

 

 

 

(1,348

)

 

 

(6,419

)

Treasury stock

 

 

(1,668

)

 

 

 

 

 

 

 

 

 

 

 

 

Total stockholders’ equity

 

 

762,667

 

 

 

750,115

 

 

 

735,866

 

 

 

717,675

 

 

 

668,749

 

Total liabilities and stockholders’ equity

 

$

5,734,754

 

 

$

5,521,809

 

 

$

5,438,278

 

 

$

5,391,236

 

 

$

5,009,925

 

BYLINE BANCORP, INC. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF OPERATIONS (unaudited)

 

 

Three Months Ended

 

(dollars in thousands, except per share data)

 

March 31,
2020

 

 

December 31,
2019

 

 

September 30,
2019

 

 

June 30,
2019

 

 

March 31,
2019

 

INTEREST AND DIVIDEND INCOME

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest and fees on loans and leases

 

$

54,158

 

 

$

58,203

 

 

$

63,391

 

 

$

59,524

 

 

$

54,383

 

Interest on securities

 

 

8,016

 

 

 

7,212

 

 

 

7,040

 

 

 

6,665

 

 

 

6,102

 

Other interest and dividend income

 

 

992

 

 

 

500

 

 

 

598

 

 

 

571

 

 

 

625

 

Total interest and dividend income

 

 

63,166

 

 

 

65,915

 

 

 

71,029

 

 

 

66,760

 

 

 

61,110

 

INTEREST EXPENSE

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Deposits

 

 

7,804

 

 

 

9,325

 

 

 

9,618

 

 

 

9,306

 

 

 

8,076

 

Short-term borrowings

 

 

1,897

 

 

 

1,989

 

 

 

2,835

 

 

 

2,265

 

 

 

2,166

 

Junior subordinated debentures issued to capital trusts

 

 

640

 

 

 

687

 

 

 

738

 

 

 

741

 

 

 

783

 

Total interest expense

 

 

10,341

 

 

 

12,001

 

 

 

13,191

 

 

 

12,312

 

 

 

11,025

 

Net interest income

 

 

52,825

 

 

 

53,914

 

 

 

57,838

 

 

 

54,448

 

 

 

50,085

 

PROVISION FOR LOAN AND LEASE LOSSES

 

 

14,455

 

 

 

4,387

 

 

 

5,931

 

 

 

6,391

 

 

 

3,999

 

Net interest income after provision for loan and lease losses

 

 

38,370

 

 

 

49,527

 

 

 

51,907

 

 

 

48,057

 

 

 

46,086

 

NON-INTEREST INCOME

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Fees and service charges on deposits

 

 

1,673

 

 

 

1,635

 

 

 

1,612

 

 

 

1,441

 

 

 

1,770

 

Loan servicing revenue

 

 

2,758

 

 

 

2,834

 

 

 

2,692

 

 

 

2,630

 

 

 

2,539

 

Loan servicing asset revaluation

 

 

(3,064

)

 

 

(2,545

)

 

 

(1,610

)

 

 

(1,223

)

 

 

(1,261

)

ATM and interchange fees

 

 

1,216

 

 

 

1,150

 

 

 

973

 

 

 

945

 

 

 

717

 

Net gains on sales of securities

available-for-sale

 

 

1,375

 

 

 

 

 

 

178

 

 

 

973

 

 

 

 

Change in fair value of equity securities, net

 

 

(619

)

 

 

381

 

 

 

(15

)

 

 

551

 

 

 

499

 

Net gains on sales of loans

 

 

4,773

 

 

 

8,735

 

 

 

9,405

 

 

 

7,472

 

 

 

6,233

 

Wealth management and trust income

 

 

669

 

 

 

704

 

 

 

653

 

 

 

626

 

 

 

595

 

Other non-interest income

 

 

392

 

 

 

1,622

 

 

 

918

 

 

 

768

 

 

 

896

 

Total non-interest income

 

 

9,173

 

 

 

14,516

 

 

 

14,806

 

 

 

14,183

 

 

 

11,988

 

NON-INTEREST EXPENSE

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Salaries and employee benefits

 

 

24,666

 

 

 

24,228

 

 

 

24,537

 

 

 

23,652

 

 

 

22,892

 

Occupancy and equipment expense, net

 

 

5,524

 

 

 

5,241

 

 

 

4,512

 

 

 

5,069

 

 

 

4,949

 

Loan and lease related expenses

 

 

1,311

 

 

 

2,648

 

 

 

1,949

 

 

 

1,841

 

 

 

1,577

 

Legal, audit, and other professional fees

 

 

2,334

 

 

 

2,340

 

 

 

4,066

 

 

 

2,981

 

 

 

2,066

 

Data processing

 

 

2,665

 

 

 

2,678

 

 

 

4,062

 

 

 

3,849

 

 

 

3,144

 

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

 

 

519

 

 

 

122

 

 

 

95

 

 

 

252

 

 

 

196

 

Other intangible assets amortization expense

 

 

1,893

 

 

 

2,002

 

 

 

2,003

 

 

 

1,959

 

 

 

1,773

 

Other non-interest expense

 

 

4,615

 

 

 

4,435

 

 

 

4,224

 

 

 

4,351

 

 

 

4,082

 

Total non-interest expense

 

 

43,527

 

 

 

43,694

 

 

 

45,448

 

 

 

43,954

 

 

 

40,679

 

INCOME BEFORE PROVISION FOR INCOME TAXES

 

 

4,016

 

 

 

20,349

 

 

 

21,265

 

 

 

18,286

 

 

 

17,395

 

PROVISION FOR INCOME TAXES

 

 

1,050

 

 

 

4,497

 

 

 

5,923

 

 

 

5,075

 

 

 

4,798

 

NET INCOME

 

 

2,966

 

 

 

15,852

 

 

 

15,342

 

 

 

13,211

 

 

 

12,597

 

Dividends on preferred shares

 

 

196

 

 

 

196

 

 

 

196

 

 

 

195

 

 

 

196

 

INCOME AVAILABLE TO COMMON STOCKHOLDERS

 

$

2,770

 

 

$

15,656

 

 

$

15,146

 

 

$

13,016

 

 

$

12,401

 

EARNINGS PER COMMON SHARE

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic

 

$

0.07

 

 

$

0.41

 

 

$

0.40

 

 

$

0.35

 

 

$

0.34

 

Diluted

 

$

0.07

 

 

$

0.41

 

 

$

0.39

 

 

$

0.34

 

 

$

0.34

 

BYLINE BANCORP, INC. AND SUBSIDIARIES

SELECTED FINANCIAL DATA (unaudited)

 

 

As of or For the Three Months Ended

 

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

 

March 31,
2020

 

 

December 31,
2019

 

 

September 30,
2019

 

 

June 30,
2019

 

 

March 31,
2019

 

Common Share Data

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic earnings per common share

 

$

0.07

 

 

$

0.41

 

 

$

0.40

 

 

$

0.35

 

 

$

0.34

 

Diluted earnings per common share

 

$

0.07

 

 

$

0.41

 

 

$

0.39

 

 

$

0.34

 

 

$

0.34

 

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

 

$

0.09

 

 

$

0.42

 

 

$

0.41

 

 

$

0.41

 

 

$

0.38

 

Weighted average common shares outstanding (basic)

 

 

37,943,333

 

 

 

37,872,835

 

 

 

37,831,356

 

 

 

37,263,352

 

 

 

36,169,477

 

Weighted average common shares outstanding (diluted)

 

 

38,663,658

 

 

 

38,537,899

 

 

 

38,487,180

 

 

 

37,948,006

 

 

 

36,876,574

 

Common shares outstanding

 

 

38,383,021

 

 

 

38,256,500

 

 

 

38,169,126

 

 

 

38,115,219

 

 

 

36,398,144

 

Cash dividends per common share

 

$

0.03

 

 

$

0.03

 

 

N/A

 

 

N/A

 

 

N/A

 

Dividend payout ratio on common stock

 

 

42.86

%

 

 

7.32

%

 

N/A

 

 

N/A

 

 

N/A

 

Tangible book value per common share(1)

 

$

14.95

 

 

$

14.62

 

 

$

14.30

 

 

$

13.79

 

 

$

13.70

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Key Ratios and Performance Metrics

(annualized where applicable)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net interest margin

 

 

4.17

%

 

 

4.32

%

 

 

4.62

%

 

 

4.51

%

 

 

4.43

%

Average cost of deposits

 

 

0.75

%

 

 

0.88

%

 

 

0.94

%

 

 

0.92

%

 

 

0.87

%

Efficiency ratio(2)

 

 

67.16

%

 

 

60.93

%

 

 

59.81

%

 

 

61.19

%

 

 

62.68

%

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

 

 

66.00

%

 

 

60.51

%

 

 

58.17

%

 

 

56.02

%

 

 

59.55

%

Non-interest expense to average assets

 

 

3.15

%

 

 

3.19

%

 

 

3.32

%

 

 

3.34

%

 

 

3.32

%

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

 

 

3.09

%

 

 

3.17

%

 

 

3.23

%

 

 

3.07

%

 

 

3.17

%

Return on average stockholders' equity

 

 

1.56

%

 

 

8.43

%

 

 

8.34

%

 

 

7.60

%

 

 

7.75

%

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

 

 

1.83

%

 

 

8.54

%

 

 

8.78

%

 

 

9.16

%

 

 

8.61

%

Return on average assets

 

 

0.21

%

 

 

1.16

%

 

 

1.12

%

 

 

1.00

%

 

 

1.03

%

Adjusted return on average assets(1)(3)(4)

 

 

0.25

%

 

 

1.17

%

 

 

1.18

%

 

 

1.21

%

 

 

1.14

%

Non-interest income to total revenues(1)

 

 

14.79

%

 

 

21.21

%

 

 

20.38

%

 

 

20.67

%

 

 

19.31

%

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

 

 

1.33

%

 

 

1.81

%

 

 

1.98

%

 

 

1.88

%

 

 

1.75

%

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

 

 

1.39

%

 

 

1.83

%

 

 

2.07

%

 

 

2.15

%

 

 

1.91

%

Return on average tangible common stockholders' equity(1)

 

 

2.89

%

 

 

12.20

%

 

 

12.22

%

 

 

11.32

%

 

 

11.37

%

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

 

 

3.25

%

 

 

12.35

%

 

 

12.82

%

 

 

13.44

%

 

 

12.54

%

Non-interest-bearing deposits to total deposits

 

 

30.45

%

 

 

30.85

%

 

 

29.93

%

 

 

30.55

%

 

 

30.54

%

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

 

 

91.38

%

 

 

91.56

%

 

 

94.07

%

 

 

95.60

%

 

 

93.69

%

Deposits to total liabilities

 

 

85.25

%

 

 

86.92

%

 

 

86.77

%

 

 

86.88

%

 

 

87.73

%

Deposits per branch

 

$

74,366

 

 

$

67,993

 

 

$

66,890

 

 

$

66,561

 

 

$

65,664

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Asset Quality Ratios

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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

 

 

1.31

%

 

 

1.00

%

 

 

1.09

%

 

 

0.95

%

 

 

0.85

%

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

 

 

1.08

%

 

 

0.84

%

 

 

0.82

%

 

 

0.81

%

 

 

0.76

%

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

 

 

0.48

%

 

 

0.42

%

 

 

0.56

%

 

 

0.25

%

 

 

0.24

%

Acquisition accounting adjustments(4)

 

$

25,889

 

 

$

28,511

 

 

$

31,053

 

 

$

37,109

 

 

$

29,341

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Capital Ratios

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Common equity to total assets

 

 

13.12

%

 

 

13.40

%

 

 

13.34

%

 

 

13.12

%

 

 

13.14

%

Tangible common equity to tangible

assets(1)

 

 

10.33

%

 

 

10.47

%

 

 

10.38

%

 

 

10.09

%

 

 

10.28

%

Leverage ratio

 

 

11.18

%

 

 

11.39

%

 

 

11.14

%

 

 

11.09

%

 

 

11.27

%

Common equity tier 1 capital ratio

 

 

12.24

%

 

 

12.36

%

 

 

12.12

%

 

 

11.65

%

 

 

12.14

%

Tier 1 capital ratio

 

 

13.52

%

 

 

13.67

%

 

 

13.43

%

 

 

12.96

%

 

 

13.57

%

Total capital ratio

 

 

14.50

%

 

 

14.43

%

 

 

14.19

%

 

 

13.71

%

 

 

14.28

%

(1)

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

(2)

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

(3)

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

(4)

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 March 31,

 

 

 

2020

 

 

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

 

$

38,934

 

 

$

157

 

 

 

1.63

%

 

$

66,765

 

 

$

301

 

 

 

1.83

%

Loans and leases(1)

 

 

3,799,213

 

 

 

54,158

 

 

 

5.73

%

 

 

3,533,973

 

 

 

54,383

 

 

 

6.24

%

Taxable securities

 

 

1,175,120

 

 

 

8,316

 

 

 

2.85

%

 

 

926,129

 

 

 

6,083

 

 

 

2.66

%

Tax-exempt securities(2)

 

 

84,679

 

 

 

535

 

 

 

2.54

%

 

 

55,198

 

 

 

343

 

 

 

2.52

%

Total interest-earning assets

 

$

5,097,946

 

 

$

63,166

 

 

 

4.98

%

 

$

4,582,065

 

 

$

61,110

 

 

 

5.41

%

Allowance for loan and lease losses

 

 

(33,664

)

 

 

 

 

 

 

 

 

 

 

(25,354

)

 

 

 

 

 

 

 

 

All other assets

 

 

501,670

 

 

 

 

 

 

 

 

 

 

 

406,995

 

 

 

 

 

 

 

 

 

TOTAL ASSETS

 

$

5,565,952

 

 

 

 

 

 

 

 

 

 

$

4,963,706

 

 

 

 

 

 

 

 

 

LIABILITIES AND STOCKHOLDERS’ EQUITY

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Deposits

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest checking

 

$

338,905

 

 

$

260

 

 

 

0.31

%

 

$

293,049

 

 

$

413

 

 

 

0.57

%

Money market accounts

 

 

962,205

 

 

 

2,214

 

 

 

0.93

%

 

 

613,001

 

 

 

1,460

 

 

 

0.97

%

Savings

 

 

480,270

 

 

 

61

 

 

 

0.05

%

 

 

471,206

 

 

 

138

 

 

 

0.12

%

Time deposits

 

 

1,113,596

 

 

 

5,269

 

 

 

1.90

%

 

 

1,195,417

 

 

 

6,065

 

 

 

2.06

%

Total interest-bearing deposits

 

 

2,894,976

 

 

 

7,804

 

 

 

1.08

%

 

 

2,572,673

 

 

 

8,076

 

 

 

1.27

%

Short-term borrowings

 

 

521,108

 

 

 

1,897

 

 

 

1.46

%

 

 

467,835

 

 

 

2,166

 

 

 

1.88

%

Junior subordinated debentures issued to capital trusts

 

 

37,385

 

 

 

640

 

 

 

6.88

%

 

 

36,817

 

 

 

783

 

 

 

8.62

%

Total borrowings

 

 

558,493

 

 

 

2,537

 

 

 

1.83

%

 

 

504,652

 

 

 

2,949

 

 

 

2.37

%

Total interest-bearing liabilities

 

$

3,453,469

 

 

$

10,341

 

 

 

1.20

%

 

$

3,077,325

 

 

$

11,025

 

 

 

1.45

%

Non-interest-bearing demand deposits

 

 

1,298,800

 

 

 

 

 

 

 

 

 

 

 

1,185,981

 

 

 

 

 

 

 

 

 

Other liabilities

 

 

48,256

 

 

 

 

 

 

 

 

 

 

 

41,244

 

 

 

 

 

 

 

 

 

Total stockholders’ equity

 

 

765,427

 

 

 

 

 

 

 

 

 

 

 

659,156

 

 

 

 

 

 

 

 

 

TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY

 

$

5,565,952

 

 

 

 

 

 

 

 

 

 

$

4,963,706

 

 

 

 

 

 

 

 

 

Net interest spread(3)

 

 

 

 

 

 

 

 

 

 

3.78

%

 

 

 

 

 

 

 

 

 

 

3.96

%

Net interest income

 

 

 

 

 

$

52,825

 

 

 

 

 

 

 

 

 

 

$

50,085

 

 

 

 

 

Net interest margin(4)

 

 

 

 

 

 

 

 

 

 

4.17

%

 

 

 

 

 

 

 

 

 

 

4.43

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net loan accretion impact on margin

 

 

 

 

 

$

3,671

 

 

 

0.29

%

 

 

 

 

 

$

5,201

 

 

 

0.46

%

(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

RECONCILIATION OF NON-GAAP FINANCIAL MEASURES (unaudited)

 

 

As of or For the Three Months Ended

 

(dollars in thousands, except per share data)

 

March 31,

2020

 

 

December 31,

2019

 

 

September 30,

2019

 

 

June 30,

2019

 

 

March 31,

2019

 

Net income and earnings per share excluding significant items

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Reported Net Income

 

$

2,966

 

 

$

15,852

 

 

$

15,342

 

 

$

13,211

 

 

$

12,597

 

Significant items:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Impairment charges on assets held for sale

 

 

715

 

 

 

111

 

 

 

67

 

 

 

 

 

 

392

 

Merger-related expense

 

 

 

 

 

127

 

 

 

1,043

 

 

 

3,152

 

 

 

18

 

Core system conversion expense

 

 

 

 

 

48

 

 

 

77

 

 

 

394

 

 

 

1,530

 

Tax benefit on impairment charges and merger-related expenses

 

 

(199

)

 

 

(79

)

 

 

(369

)

 

 

(842

)

 

 

(540

)

Adjusted Net Income

 

$

3,482

 

 

$

16,059

 

 

$

16,160

 

 

$

15,915

 

 

$

13,997

 

Reported Diluted Earnings per Share

 

$

0.07

 

 

$

0.41

 

 

$

0.39

 

 

$

0.34

 

 

$

0.34

 

Significant items:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Impairment charges on assets held for sale

 

 

0.02

 

 

 

 

 

 

 

 

 

 

 

 

0.01

 

Merger-related expense

 

 

 

 

 

0.01

 

 

 

0.03

 

 

 

0.08

 

 

 

 

Core system conversion expense

 

 

 

 

 

 

 

 

 

 

 

0.01

 

 

 

0.04

 

Tax benefit on impairment charges and merger-related expenses

 

 

 

 

 

 

 

 

(0.01

)

 

 

(0.02

)

 

 

(0.01

)

Adjusted Diluted Earnings per Share

 

$

0.09

 

 

$

0.42

 

 

$

0.41

 

 

$

0.41

 

 

$

0.38

 

BYLINE BANCORP, INC. AND SUBSIDIARIES

RECONCILIATION OF NON-GAAP FINANCIAL MEASURES (continued) (unaudited)

 

 

As of or For the Three Months Ended

 

(dollars in thousands, except per share data,

ratios annualized, where applicable)

 

March 31,

2020

 

 

December 31,

2019

 

 

September 30,

2019

 

 

June 30,

2019

 

 

March 31,

2019

 

Adjusted non-interest expense:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Non-interest expense

 

$

43,527

 

 

$

43,694

 

 

$

45,448

 

 

$

43,954

 

 

$

40,679

 

Less: Significant items

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Impairment charges on assets held for sale

 

 

715

 

 

 

111

 

 

 

67

 

 

 

 

 

 

392

 

Merger-related expense

 

 

 

 

 

127

 

 

 

1,043

 

 

 

3,152

 

 

 

18

 

Core system conversion expense

 

 

 

 

 

48

 

 

 

77

 

 

 

394

 

 

 

1,530

 

Adjusted non-interest expense

 

$

42,812

 

 

$

43,408

 

 

$

44,261

 

 

$

40,408

 

 

$

38,739

 

Adjusted non-interest expense excluding amortization of intangible assets:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Adjusted non-interest expense

 

$

42,812

 

 

$

43,408

 

 

$

44,261

 

 

$

40,408

 

 

$

38,739

 

Less: Amortization of intangible assets

 

 

1,893

 

 

 

2,002

 

 

 

2,003

 

 

 

1,959

 

 

 

1,773

 

Adjusted non-interest expense excluding amortization of intangible assets

 

$

40,919

 

 

$

41,406

 

 

$

42,258

 

 

$

38,449

 

 

$

36,966

 

Pre-tax pre-provision net income:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Pre-tax income

 

$

4,016

 

 

$

20,349

 

 

$

21,265

 

 

$

18,286

 

 

$

17,395

 

Add: Provision for loan and lease losses

 

 

14,455

 

 

 

4,387

 

 

 

5,931

 

 

 

6,391

 

 

 

3,999

 

Pre-tax pre-provision net income

 

$

18,471

 

 

$

24,736

 

 

$

27,196

 

 

$

24,677

 

 

$

21,394

 

Adjusted pre-tax pre-provision net income:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Pre-tax pre-provision net income

 

$

18,471

 

 

$

24,736

 

 

$

27,196

 

 

$

24,677

 

 

$

21,394

 

Impairment charges on assets held for sale

 

 

715

 

 

 

111

 

 

 

67

 

 

 

 

 

 

392

 

Merger-related expense

 

 

 

 

 

127

 

 

 

1,043

 

 

 

3,152

 

 

 

18

 

Core system conversion expense

 

 

 

 

 

48

 

 

 

77

 

 

 

394

 

 

 

1,530

 

Adjusted pre-tax pre-provision net income

 

$

19,186

 

 

$

25,022

 

 

$

28,383

 

 

$

28,223

 

 

$

23,334

 

Total revenues:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net interest income

 

$

52,825

 

 

$

53,914

 

 

$

57,838

 

 

$

54,448

 

 

$

50,085

 

Add: Non-interest income

 

 

9,173

 

 

 

14,516

 

 

 

14,806

 

 

 

14,183

 

 

 

11,988

 

Total revenues

 

$

61,998

 

 

$

68,430

 

 

$

72,644

 

 

$

68,631

 

 

$

62,073

 

Tangible common stockholders' equity:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total stockholders' equity

 

$

762,667

 

 

$

750,115

 

 

$

735,866

 

 

$

717,675

 

 

$

668,749

 

Less: Preferred stock

 

 

10,438

 

 

 

10,438

 

 

 

10,438

 

 

 

10,438

 

 

 

10,438

 

Less: Goodwill and other intangibles

 

 

178,362

 

 

 

180,255

 

 

 

179,543

 

 

 

181,546

 

 

 

159,823

 

Tangible common stockholders' equity

 

$

573,867

 

 

$

559,422

 

 

$

545,885

 

 

$

525,691

 

 

$

498,488

 

Tangible assets:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total assets

 

$

5,734,754

 

 

$

5,521,809

 

 

$

5,438,278

 

 

$

5,391,236

 

 

$

5,009,925

 

Less: Goodwill and other intangibles

 

 

178,362

 

 

 

180,255

 

 

 

179,543

 

 

 

181,546

 

 

 

159,823

 

Tangible assets

 

$

5,556,392

 

 

$

5,341,554

 

 

$

5,258,735

 

 

$

5,209,690

 

 

$

4,850,102

 

Average tangible common stockholders' equity:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Average total stockholders' equity

 

$

765,427

 

 

$

745,745

 

 

$

729,781

 

 

$

696,928

 

 

$

659,156

 

Less: Average preferred stock

 

 

10,438

 

 

 

10,438

 

 

 

10,438

 

 

 

10,438

 

 

 

10,438

 

Less: Average goodwill and other intangibles

 

 

179,416

 

 

 

179,192

 

 

 

180,740

 

 

 

175,236

 

 

 

160,924

 

Average tangible common stockholders' equity

 

$

575,573

 

 

$

556,115

 

 

$

538,603

 

 

$

511,254

 

 

$

487,794

 

Average tangible assets:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Average total assets

 

$

5,565,952

 

 

$

5,427,046

 

 

$

5,435,762

 

 

$

5,274,820

 

 

$

4,963,706

 

Less: Average goodwill and other intangibles

 

 

179,416

 

 

 

179,192

 

 

 

180,740

 

 

 

175,236

 

 

 

160,924

 

Average tangible assets

 

$

5,386,536

 

 

$

5,247,854

 

 

$

5,255,022

 

 

$

5,099,584

 

 

$

4,802,782

 

Tangible net income available to common stockholders:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net income available to common stockholders

 

$

2,770

 

 

$

15,656

 

 

$

15,146

 

 

$

13,016

 

 

$

12,401

 

Add: After-tax intangible asset amortization

 

 

1,366

 

 

 

1,445

 

 

 

1,445

 

 

 

1,413

 

 

 

1,279

 

Tangible net income available to common stockholders