Byline Bancorp, Inc. Reports Second Quarter 2020 Financial Results

Second Quarter 2020 Highlights

  • Net income of $9.1 million, or $0.24 per diluted share
  • Net interest margin of 3.71%
  • Return on average assets of 0.59%
  • Efficiency ratio of 53.70%
  • Originated loans and leases increased $610.9 million, or 20.5%, from March 31, 2020
    • Originated $734.0 million in loans of which $626.8 million were under the Paycheck Protection Program (“PPP”)
  • Completed a public offering of $50.0 million aggregate principal amount of 6.00% fixed-to-floating rate subordinated notes due 2030
  • Common Equity Tier 1 to risk weighted assets of 12.33%

CHICAGO--()--Byline Bancorp, Inc. (the “Company” or “Byline”) (NYSE: BY), the parent company of Byline Bank (the “Bank”), today reported net income of $9.1 million, or $0.24 per diluted share, for the second quarter of 2020, compared with net income of $3.0 million, or $0.07 per diluted share, for the first quarter of 2020, and net income of $13.2 million, or $0.34 per diluted share, for the second quarter of 2019.

Alberto J. Paracchini, President and Chief Executive Officer of Byline, commented, “We continued to operate in a challenging environment due to the ongoing COVID-19 pandemic. Notwithstanding, our team continued to execute well during the second quarter, which enabled us to deliver a solid financial performance while remaining committed to supporting our employees, customers, and communities. We actively participated in the Paycheck Protection Program, and we were able to help more than 3,600 small businesses access approximately $627 million in funding. Our participation in the PPP helped drive strong growth in both loans and deposits during the second quarter. We are also seeing improving demand for government guaranteed loans outside of the PPP, which resulted in a higher level of loan sales this quarter.

“While the pandemic continues, we remain cautious given the uncertainties currently present in the economic outlook. We have increased our reserves through our Allowance for Loan and Lease Losses, added to our capital position with the subordinated debt offering we completed during the quarter, and continue to maintain a high level of liquidity. We believe this approach positions us well to continue to manage through this environment,” said Mr. Paracchini.

Byline’s Response to Pandemic Update

We continued to execute a series of measures implemented during the prior quarter 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 response. Recent updates include:

  • 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.
    • Four hub branch locations open and allowing regular lobby traffic, drive-thru only locations for 18 branches, 17 full service branches with lobby hours by appointment, and 18 branches temporarily closed.
    • Continuously following CDC guidelines at branches and offices.
  • Proactively engaged our customers and borrowers to identify short-term cash flow and other financial needs.
    • Approved 1,800 payment deferrals totaling approximately $619.2 million, or 16.4%1 of loans and leases at June 30, 2020.
    • Established customer strategy to process PPP loans efficiently through our existing SBA platform and funded over 3,600 loans totaling $626.8 million.
    • Approved to participate in the Main Street Lending Facility through the Federal Reserve.

The following table presents information regarding the PPP loans as of June 30, 2020:

 

 

PPP Loan Size

 

 

 

 

 

 

 

 

 

 

 

Over $150,000 -

 

 

 

 

 

 

 

 

 

(dollars in thousands)

 

$0 - $150,000

 

 

$2,000,000

 

 

Over $2,000,000

 

 

Total

 

Principal outstanding

 

$

119,736

 

 

$

422,218

 

 

$

84,639

 

 

$

626,593

 

Unearned processing fee

 

 

(5,335

)

 

 

(13,662

)

 

 

(730

)

 

 

(19,727

)

Deferred costs

 

 

3,499

 

 

 

1,263

 

 

 

36

 

 

 

4,798

 

Carrying value

 

$

117,900

 

 

$

409,819

 

 

$

83,945

 

 

$

611,664

 

Number of loans

 

 

2,628

 

 

 

949

 

 

 

27

 

 

 

3,604

 

STATEMENTS OF OPERATIONS

Net Interest Income

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

 

 

Three Months Ended

 

 

Six Months Ended

 

 

 

June 30,

 

 

March 31,

 

 

December 31,

 

 

September 30,

 

 

June 30,

 

 

June 30,

 

 

June 30,

 

(dollars in thousands)

 

2020

 

 

2020

 

 

2019

 

 

2019

 

 

2019

 

 

2020

 

 

2019

 

INTEREST AND DIVIDEND INCOME

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest and fees on loans and

leases

 

$

50,153

 

 

$

54,158

 

 

$

58,203

 

 

$

63,391

 

 

$

59,524

 

 

$

104,311

 

 

$

113,907

 

Interest on securities

 

 

7,530

 

 

 

8,016

 

 

 

7,212

 

 

 

7,040

 

 

 

6,665

 

 

 

15,546

 

 

 

12,767

 

Other interest and dividend

income

 

 

222

 

 

 

992

 

 

 

500

 

 

 

598

 

 

 

571

 

 

 

1,214

 

 

 

1,196

 

Total interest and dividend

income

 

 

57,905

 

 

 

63,166

 

 

 

65,915

 

 

 

71,029

 

 

 

66,760

 

 

 

121,071

 

 

 

127,870

 

INTEREST EXPENSE

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Deposits

 

 

4,246

 

 

 

7,804

 

 

 

9,325

 

 

 

9,618

 

 

 

9,306

 

 

 

12,050

 

 

 

17,382

 

Other borrowings

 

 

476

 

 

 

1,897

 

 

 

1,989

 

 

 

2,835

 

 

 

2,265

 

 

 

2,373

 

 

 

4,431

 

Subordinated notes and

debentures

 

 

574

 

 

 

640

 

 

 

687

 

 

 

738

 

 

 

741

 

 

 

1,214

 

 

 

1,524

 

Total interest expense

 

 

5,296

 

 

 

10,341

 

 

 

12,001

 

 

 

13,191

 

 

 

12,312

 

 

 

15,637

 

 

 

23,337

 

Net interest income

 

$

52,609

 

 

$

52,825

 

 

$

53,914

 

 

$

57,838

 

 

$

54,448

 

 

$

105,434

 

 

$

104,533

 

 

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

 

 

For the Three Months Ended

 

 

 

June 30, 2020

 

 

March 31, 2020

 

(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

 

$

58,971

 

 

$

25

 

 

 

0.17

%

 

$

38,934

 

 

$

157

 

 

 

1.63

%

Loans and leases(1)

 

 

4,283,654

 

 

 

50,153

 

 

 

4.71

%

 

 

3,799,213

 

 

 

54,158

 

 

 

5.73

%

Taxable securities

 

 

1,243,604

 

 

 

7,021

 

 

 

2.27

%

 

 

1,175,120

 

 

 

8,316

 

 

 

2.85

%

Tax-exempt securities(2)

 

 

117,340

 

 

 

706

 

 

 

2.42

%

 

 

84,679

 

 

 

535

 

 

 

2.54

%

Total interest-earning assets

 

$

5,703,569

 

 

$

57,905

 

 

 

4.08

%

 

$

5,097,946

 

 

$

63,166

 

 

 

4.98

%

Allowance for loan and lease losses

 

 

(43,009

)

 

 

 

 

 

 

 

 

 

 

(33,664

)

 

 

 

 

 

 

 

 

All other assets

 

 

526,414

 

 

 

 

 

 

 

 

 

 

 

501,670

 

 

 

 

 

 

 

 

 

TOTAL ASSETS

 

$

6,186,974

 

 

 

 

 

 

 

 

 

 

$

5,565,952

 

 

 

 

 

 

 

 

 

LIABILITIES AND STOCKHOLDERS’

EQUITY

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Deposits

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest checking

 

$

392,070

 

 

$

165

 

 

 

0.17

%

 

$

338,905

 

 

$

260

 

 

 

0.31

%

Money market accounts

 

 

1,214,713

 

 

 

946

 

 

 

0.31

%

 

 

962,205

 

 

 

2,214

 

 

 

0.93

%

Savings

 

 

511,049

 

 

 

61

 

 

 

0.05

%

 

 

480,270

 

 

 

61

 

 

 

0.05

%

Time deposits

 

 

976,710

 

 

 

3,074

 

 

 

1.27

%

 

 

1,113,596

 

 

 

5,269

 

 

 

1.90

%

Total interest-bearing

deposits

 

 

3,094,542

 

 

 

4,246

 

 

 

0.55

%

 

 

2,894,976

 

 

 

7,804

 

 

 

1.08

%

Other borrowings

 

 

534,766

 

 

 

476

 

 

 

0.36

%

 

 

521,108

 

 

 

1,897

 

 

 

1.46

%

Subordinated notes and debentures

 

 

40,180

 

 

 

574

 

 

 

5.75

%

 

 

37,385

 

 

 

640

 

 

 

6.88

%

Total borrowings

 

 

574,946

 

 

 

1,050

 

 

 

0.73

%

 

 

558,493

 

 

 

2,537

 

 

 

1.83

%

Total interest-bearing liabilities

 

$

3,669,488

 

 

$

5,296

 

 

 

0.58

%

 

$

3,453,469

 

 

$

10,341

 

 

 

1.20

%

Non-interest-bearing demand deposits

 

 

1,692,723

 

 

 

 

 

 

 

 

 

 

 

1,298,800

 

 

 

 

 

 

 

 

 

Other liabilities

 

 

48,884

 

 

 

 

 

 

 

 

 

 

 

48,256

 

 

 

 

 

 

 

 

 

Total stockholders’ equity

 

 

775,879

 

 

 

 

 

 

 

 

 

 

 

765,427

 

 

 

 

 

 

 

 

 

TOTAL LIABILITIES AND

STOCKHOLDERS’ EQUITY

 

$

6,186,974

 

 

 

 

 

 

 

 

 

 

$

5,565,952

 

 

 

 

 

 

 

 

 

Net interest spread(3)

 

 

 

 

 

 

 

 

 

 

3.50

%

 

 

 

 

 

 

 

 

 

 

3.78

%

Net interest income

 

 

 

 

 

$

52,609

 

 

 

 

 

 

 

 

 

 

$

52,825

 

 

 

 

 

Net interest margin(4)

 

 

 

 

 

 

 

 

 

 

3.71

%

 

 

 

 

 

 

 

 

 

 

4.17

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net loan accretion impact on margin

 

 

 

 

 

$

3,172

 

 

 

0.22

%

 

 

 

 

 

$

3,671

 

 

 

0.29

%

 (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 second quarter of 2020 was $52.6 million, relatively the same level as the first quarter of 2020, as a lower cost of funds was offset by a decrease in loan yields.

The change in net interest income was primarily due to:

  • A decrease of $3.6 million in interest expense on deposits, due to lower rates paid on money market accounts and maturities of higher-rate time deposits; and
  • A decrease of $1.5 million in interest expense on borrowings principally as a result of accessing funds available to borrow at a lower cost.

Offset by:

  • A decrease of $4.0 million in interest and fees on loans and leases, mainly due to a full quarter impact of the decreases in short-term rates in March 2020, the result of lower-yielding PPP loan balances, and a $499,000 decrease in accretion income on acquired loans.

Net interest margin for the second quarter of 2020 was 3.71%, a decrease of 46 basis points compared to 4.17% for the first quarter of 2020. Total net accretion income on acquired loans contributed 22 basis points to the net interest margin for the second quarter of 2020 compared to 29 basis points for the first quarter of 2020, a decrease of 7 basis points. The net interest margin decrease during the second quarter of 2020 was primarily driven by decreased loan and lease yields largely resulting from a full quarter impact of decreases in short-term rates and lower-yielding PPP loan balances partly offset by a decrease in the cost of funds also due to decreases in short-term rates and higher non-interest-bearing demand deposit balances.

The average cost of total deposits was 0.36% for the second quarter of 2020, a decrease of 39 basis points compared to the first quarter of 2020, mainly due to a lower average cost of money market accounts and time deposits as well as a favorable change in deposit mix. Average non-interest-bearing demand deposits grew by $393.9 million, while average time deposits decreased by $136.9 million. Average non-interest-bearing demand deposits were 35.4% of average total deposits for the second quarter of 2020 compared to 31.4% for the first quarter of 2020.

Provision for Loan and Lease Losses

The provision for loan and lease losses was $15.5 million for the second quarter of 2020, an increase of $1.1 million compared to $14.5 million for the first quarter of 2020. The second quarter included allocations of $14.2 million for originated loans and leases, $862,000 for acquired non-impaired loans, and $477,000 for acquired impaired loans. The provision during the second quarter of 2020 included $5.3 million in specific impairments on originated loans, including $1.4 million related to the unguaranteed portion of government guaranteed loans. The second quarter provision included $7.3 million 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

 

 

Six Months Ended

 

 

 

June 30,

 

 

March 31,

 

 

December 31,

 

 

September 30,

 

 

June 30,

 

 

June 30,

 

 

June 30,

 

(dollars in thousands)

 

2020

 

 

2020

 

 

2019

 

 

2019

 

 

2019

 

 

2020

 

 

2019

 

NON-INTEREST INCOME

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Fees and service charges on

deposits

 

$

1,455

 

 

$

1,673

 

 

$

1,635

 

 

$

1,612

 

 

$

1,441

 

 

$

3,128

 

 

$

3,211

 

Loan servicing revenue

 

 

2,980

 

 

 

2,758

 

 

 

2,834

 

 

 

2,692

 

 

 

2,630

 

 

 

5,738

 

 

 

5,169

 

Loan servicing asset revaluation

 

 

(711

)

 

 

(3,064

)

 

 

(2,545

)

 

 

(1,610

)

 

 

(1,223

)

 

 

(3,775

)

 

 

(2,484

)

ATM and interchange fees

 

 

845

 

 

 

1,216

 

 

 

1,150

 

 

 

973

 

 

 

945

 

 

 

2,061

 

 

 

1,662

 

Net gains on sales of securities

available-for-sale

 

 

 

 

 

1,375

 

 

 

 

 

 

178

 

 

 

973

 

 

 

1,375

 

 

 

973

 

Change in fair value of equity

securities, net

 

 

766

 

 

 

(619

)

 

 

381

 

 

 

(15

)

 

 

551

 

 

 

147

 

 

 

1,050

 

Net gains on sales of loans

 

 

6,456

 

 

 

4,773

 

 

 

8,735

 

 

 

9,405

 

 

 

7,472

 

 

 

11,229

 

 

 

13,705

 

Wealth management and trust

income

 

 

608

 

 

 

669

 

 

 

704

 

 

 

653

 

 

 

626

 

 

 

1,277

 

 

 

1,221

 

Other non-interest income

 

 

389

 

 

 

392

 

 

 

1,622

 

 

 

918

 

 

 

768

 

 

 

781

 

 

 

1,664

 

Total non-interest income

 

$

12,788

 

 

$

9,173

 

 

$

14,516

 

 

$

14,806

 

 

$

14,183

 

 

$

21,961

 

 

$

26,171

 

Non-interest income for the second quarter of 2020 was $12.8 million, an increase of $3.6 million, or 39.4% compared to $9.2 million for the first quarter of 2020.

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

  • A $2.4 million decrease in loan servicing asset revaluation due to a favorable change in the fair value of the servicing asset as a result of improved secondary market conditions reflected by improved premium rates and lower pre-payment speeds following the initial onset of the COVID-19 pandemic;
  • An increase of $1.7 million in net gains on sales of loans, mainly due to an increase in volume of sales of government guaranteed loans and improving premiums; and
  • An increase in the change in fair value of equity securities, net, of $1.4 million due to an increase in the fair value of those securities.

Partially offset by:

  • A decrease of $1.4 million in net gains on sales of securities available-for-sale as a result of sales during the first quarter of 2020 compared to none during the second quarter of 2020.

During the second quarter of 2020, the Company sold $78.7 million of U.S. government guaranteed loans compared to $61.0 million during the first quarter of 2020. The increase in sales was driven by increased SBA 7(a) origination volumes.

Non-interest Expense

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

 

 

Three Months Ended

 

 

Six Months Ended

 

 

 

June 30,

 

 

March 31,

 

 

December 31,

 

 

September 30,

 

 

June 30,

 

 

June 30,

 

 

June 30,

 

(dollars in thousands)

 

2020

 

 

2020

 

 

2019

 

 

2019

 

 

2019

 

 

2020

 

 

2019

 

NON-INTEREST EXPENSE

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Salaries and employee benefits

 

$

19,405

 

 

$

24,666

 

 

$

24,228

 

 

$

24,537

 

 

$

23,652

 

 

$

44,071

 

 

$

46,544

 

Occupancy and equipment

expense, net

 

 

5,359

 

 

 

5,524

 

 

 

5,241

 

 

 

4,512

 

 

 

5,069

 

 

 

10,883

 

 

 

10,018

 

Loan and lease related expenses

 

 

1,260

 

 

 

1,311

 

 

 

2,648

 

 

 

1,949

 

 

 

1,841

 

 

 

2,571

 

 

 

3,418

 

Legal, audit and other professional

fees

 

 

2,078

 

 

 

2,334

 

 

 

2,340

 

 

 

4,066

 

 

 

2,981

 

 

 

4,412

 

 

 

5,047

 

Data processing

 

 

2,826

 

 

 

2,665

 

 

 

2,678

 

 

 

4,062

 

 

 

3,849

 

 

 

5,491

 

 

 

6,993

 

Net loss recognized on other

real estate owned and other

related expenses

 

 

456

 

 

 

519

 

 

 

122

 

 

 

95

 

 

 

252

 

 

 

975

 

 

 

448

 

Other intangible assets

amortization expense

 

 

1,892

 

 

 

1,893

 

 

 

2,002

 

 

 

2,003

 

 

 

1,959

 

 

 

3,785

 

 

 

3,732

 

Other non-interest expense

 

 

3,736

 

 

 

4,615

 

 

 

4,435

 

 

 

4,224

 

 

 

4,351

 

 

 

8,351

 

 

 

8,433

 

Total non-interest expense

 

$

37,012

 

 

$

43,527

 

 

$

43,694

 

 

$

45,448

 

 

$

43,954

 

 

$

80,539

 

 

$

84,633

 

Non-interest expense for the second quarter of 2020 was $37.0 million, a decrease of $6.5 million, or 15.0%, from $43.5 million for the first quarter of 2020.

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

  • A decrease of $5.3 million in salaries and employee benefits, mainly due to an increase in deferred costs as a result of PPP loan originations during the quarter; and
  • A decrease of $879,000 in other non-interest expense mostly due to a decrease in impairment charges on assets held for sale.

The Company’s efficiency ratio was 53.70% for the second quarter of 2020 compared with 67.16% for the first quarter of 2020.

INCOME TAXES

The Company recorded income tax expense of $3.7 million during the second quarter of 2020, an effective tax rate of 29.0% compared to $1.1 million during the first quarter of 2020, an effective tax rate of 26.1%. The change in the effective tax rate was due to the reversal of tax benefits associated with share-based compensation awards.

STATEMENTS OF FINANCIAL CONDITION

Total assets were $6.4 billion at June 30, 2020, an increase of $658.8 million compared to $5.7 billion at March 31, 2020, and an increase of $1.0 billion compared to $5.4 billion at June 30, 2019.

The current quarter increase was primarily due to:

  • An increase in securities of $128.2 million, principally a result of purchases of mortgage-backed securities during the quarter; and
  • An increase in loans and leases of $530.9 million, mostly due to an increase of $610.9 million in our originated loan portfolio reflecting the growth in PPP and commercial real estate loan balances, partially offset by a decrease of $80.1 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:

 

 

June 30, 2020

 

 

March 31, 2020

 

 

June 30, 2019

 

(dollars in thousands)

 

Amount

 

 

% of Total

 

 

Amount

 

 

% of Total

 

 

Amount

 

 

% of Total

 

Originated loans and leases

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Commercial real estate

 

$

919,510

 

 

 

20.9

%

 

$

839,244

 

 

 

21.7

%

 

$

721,230

 

 

 

18.7

%

Residential real estate

 

 

480,692

 

 

 

10.9

%

 

 

480,946

 

 

 

12.5

%

 

 

501,038

 

 

 

13.0

%

Construction, land development, and

other land

 

 

219,261

 

 

 

5.0

%

 

 

242,001

 

 

 

6.3

%

 

 

196,656

 

 

 

5.1

%

Commercial and industrial

 

 

1,200,996

 

 

 

27.4

%

 

 

1,263,688

 

 

 

32.7

%

 

 

992,313

 

 

 

25.7

%

Paycheck protection program

 

 

611,664

 

 

 

13.9

%

 

 

 

 

 

 

 

 

 

 

 

 

Installment and other

 

 

2,714

 

 

 

0.1

%

 

 

4,594

 

 

 

0.1

%

 

 

10,937

 

 

 

0.3

%

Leasing financing receivables

 

 

160,741

 

 

 

3.7

%

 

 

154,173

 

 

 

4.0

%

 

 

162,119

 

 

 

4.1

%

Total originated loans and leases

 

$

3,595,578

 

 

 

81.9

%

 

$

2,984,646

 

 

 

77.3

%

 

$

2,584,293

 

 

 

66.9

%

Acquired impaired loans

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Commercial real estate

 

$

126,405

 

 

 

2.9

%

 

$

127,895

 

 

 

3.3

%

 

$

151,127

 

 

 

3.9

%

Residential real estate

 

 

90,784

 

 

 

2.1

%

 

 

94,198

 

 

 

2.5

%

 

 

118,534

 

 

 

3.1

%

Construction, land development, and

other land

 

 

4,784

 

 

 

0.1

%

 

 

5,291

 

 

 

0.1

%

 

 

4,220

 

 

 

0.1

%

Commercial and industrial

 

 

13,485

 

 

 

0.3

%

 

 

15,808

 

 

 

0.4

%

 

 

20,370

 

 

 

0.5

%

Installment and other

 

 

226

 

 

 

0.0

%

 

 

236

 

 

 

0.0

%

 

 

300

 

 

 

0.0

%

Total acquired impaired loans

 

$

235,684

 

 

 

5.4

%

 

$

243,428

 

 

 

6.3

%

 

$

294,551

 

 

 

7.6

%

Acquired non-impaired loans and leases

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Commercial real estate

 

$

305,041

 

 

 

6.9

%

 

$

327,820

 

 

 

8.5

%

 

$

439,182

 

 

 

11.4

%

Residential real estate

 

 

99,288

 

 

 

2.2

%

 

 

118,853

 

 

 

3.1

%

 

 

158,190

 

 

 

4.1

%

Construction, land development, and

other land

 

 

21,958

 

 

 

0.5

%

 

 

30,484

 

 

 

0.8

%

 

 

51,072

 

 

 

1.3

%

Commercial and industrial

 

 

116,668

 

 

 

2.7

%

 

 

135,063

 

 

 

3.5

%

 

 

307,887

 

 

 

8.0

%

Installment and other

 

 

818

 

 

 

0.0

%

 

 

891

 

 

 

0.0

%

 

 

1,672

 

 

 

0.0

%

Leasing financing receivables

 

 

16,087

 

 

 

0.4

%

 

 

19,074

 

 

 

0.5

%

 

 

26,301

 

 

 

0.7

%

Total acquired non-impaired loans

and leases

 

$

559,860

 

 

 

12.7

%

 

$

632,185

 

 

 

16.4

%

 

$

984,304

 

 

 

25.5

%

Total loans and leases

 

$

4,391,122

 

 

 

100.0

%

 

$

3,860,259

 

 

 

100.0

%

 

$

3,863,148

 

 

 

100.0

%

Allowance for loan and lease losses

 

 

(51,300

)

 

 

 

 

 

 

(41,840

)

 

 

 

 

 

 

(31,132

)

 

 

 

 

Total loans and leases, net of allowance for

loan and lease losses

 

$

4,339,822

 

 

 

 

 

 

$

3,818,419

 

 

 

 

 

 

$

3,832,016

 

 

 

 

 

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:

 

 

June 30,

 

 

March 31,

 

 

December 31,

 

 

September 30,

 

 

June 30,

 

(dollars in thousands)

 

2020

 

 

2020

 

 

2019

 

 

2019

 

 

2019

 

Non-performing assets:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Non-accrual loans and leases

 

$

40,505

 

 

$

48,964

 

 

$

36,272

 

 

$

39,528

 

 

$

34,027

 

Past due loans and leases 90 days or more

and still accruing interest

 

 

 

 

 

 

 

 

 

 

 

 

 

 

996

 

Accruing troubled debt restructured loans

 

 

3,151

 

 

 

1,725

 

 

 

1,771

 

 

 

2,204

 

 

 

1,529

 

Total non-performing loans and leases

 

 

43,656

 

 

 

50,689

 

 

 

38,043

 

 

 

41,732

 

 

 

36,552

 

Other real estate owned

 

 

8,652

 

 

 

9,273

 

 

 

9,896

 

 

 

6,502

 

 

 

6,531

 

Total non-performing assets

 

$

52,308

 

 

$

59,962

 

 

$

47,939

 

 

$

48,234

 

 

$

43,083

 

Total non-performing loans and leases as a

percentage of total loans and leases

 

 

0.99

%

 

 

1.31

%

 

 

1.00

%

 

 

1.09

%

 

 

0.95

%

Total non-performing assets as a percentage of total assets

 

 

0.82

%

 

 

1.05

%

 

 

0.87

%

 

 

0.89

%

 

 

0.80

%

Allowance for loan and lease losses as a

percentage of non-performing loans and

leases

 

 

117.51

%

 

 

82.54

%

 

 

83.95

%

 

 

75.68

%

 

 

85.17

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Non-performing assets guaranteed by

U.S. government:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Non-accrual loans guaranteed

 

$

3,755

 

 

$

4,957

 

 

$

4,232

 

 

$

4,167

 

 

$

4,723

 

Past due loans 90 days or more and still

accruing interest guaranteed

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Accruing troubled debt restructured loans

guaranteed

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total non-performing loans guaranteed

 

$

3,755

 

 

$

4,957

 

 

$

4,232

 

 

$

4,167

 

 

$

4,723

 

Total non-performing loans and leases

not guaranteed as a percentage of total

loans and leases

 

 

0.91

%

 

 

1.18

%

 

 

0.89

%

 

 

0.98

%

 

 

0.82

%

Total non-performing assets not guaranteed

as a percentage of total assets

 

 

0.76

%

 

 

0.96

%

 

 

0.79

%

 

 

0.81

%

 

 

0.71

%

Variances in non-performing assets were:

  • Non-performing loans and leases were $43.7 million at June 30, 2020, a decrease of $7.0 million from $50.7 million at March 31, 2020, principally due to charge-offs; and
  • Other real estate owned was $8.7 million at June 30, 2020, a decrease of $621,000 from $9.3 million at March 31, 2020 due to sales and valuation adjustments.

U.S. government guaranteed balances of non-performing loans were $3.8 million at June 30, 2020 and $5.0 million at March 31, 2020.

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

 

 

Six Months Ended

 

 

 

June 30,

 

 

March 31,

 

 

December 31,

 

 

September 30,

 

 

June 30,

 

 

June 30,

 

 

June 30,

 

(dollars in thousands)

 

2020

 

 

2020

 

 

2019

 

 

2019

 

 

2019

 

 

2020

 

 

2019

 

Allowance for loan and lease losses,

beginning of period

 

$

41,840

 

 

$

31,936

 

 

$

31,585

 

 

$

31,132

 

 

$

27,106

 

 

$

31,936

 

 

$

25,201

 

Provision for loan and lease losses

 

 

15,518

 

 

 

14,455

 

 

 

4,387

 

 

 

5,931

 

 

 

6,391

 

 

 

29,973

 

 

 

10,390

 

Net charge-offs of loans and leases

 

 

(6,058

)

 

 

(4,551

)

 

 

(4,036

)

 

 

(5,478

)

 

 

(2,365

)

 

 

(10,609

)

 

 

(4,459

)

Allowance for loan and lease losses,

end of period

 

$

51,300

 

 

$

41,840

 

 

$

31,936

 

 

$

31,585

 

 

$

31,132

 

 

$

51,300

 

 

$

31,132

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Allowance for loan and lease losses

to period end total loans and

leases held for investment

 

 

1.17

%

 

 

1.08

%

 

 

0.84

%

 

 

0.82

%

 

 

0.81

%

 

 

1.17

%

 

 

0.81

%

Net charge-offs (annualized) to

average loans and leases

outstanding during the period

 

 

0.57

%

 

 

0.48

%

 

 

0.42

%

 

 

0.56

%

 

 

0.25

%

 

 

0.53

%

 

 

0.25

%

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

 

2.56x

 

 

3.18x

 

 

1.09x

 

 

1.08x

 

 

2.70x

 

 

 

2.83

x

 

2.33x

 

The allowance for loan and lease losses as a percentage of total loans and leases held for investment increased to 1.17% at June 30, 2020 compared to 1.08% at March 31, 2020 and 0.81% at June 30, 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 the 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 second quarter of 2020 were $6.1 million, or 0.57% of average loans and leases, on an annualized basis, an increase of $1.5 million compared to $4.6 million, or 0.48% of average loans and leases, during the first quarter of 2020, and an increase of $3.7 million from $2.4 million, or 0.25%, for the comparable quarter one year ago.

The net charge-offs during the quarter were primarily attributed to commercial and industrial loans. Net charge-offs for the second quarter of 2020 included $2.0 million in the unguaranteed portion of U.S. government guaranteed loans, while net charge-offs for the first quarter of 2020 included $3.4 million and second quarter of 2019 included $2.3 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:

 

 

June 30,

 

 

March 31,

 

 

December 31,

 

 

September 30,

 

 

June 30,

 

(dollars in thousands)

 

2020

 

 

2020

 

 

2019

 

 

2019

 

 

2019

 

Non-interest-bearing demand deposits

 

$

1,768,675

 

 

$

1,290,896

 

 

$

1,279,641

 

 

$

1,221,431

 

 

$

1,240,375

 

Interest-bearing checking accounts

 

 

503,909

 

 

 

355,678

 

 

 

338,185

 

 

 

372,049

 

 

 

345,081

 

Money market demand accounts

 

 

1,233,748

 

 

 

1,104,276

 

 

 

881,387

 

 

 

745,154

 

 

 

728,954

 

Other savings

 

 

525,043

 

 

 

486,131

 

 

 

475,839

 

 

 

471,878

 

 

 

480,756

 

Time deposits (below $250,000)

 

 

710,429

 

 

 

800,759

 

 

 

916,723

 

 

 

966,866

 

 

 

980,162

 

Time deposits ($250,000 and above)

 

 

216,541

 

 

 

201,096

 

 

 

255,802

 

 

 

302,936

 

 

 

284,915

 

Total deposits

 

$

4,958,345

 

 

$

4,238,836

 

 

$

4,147,577

 

 

$

4,080,314

 

 

$

4,060,243

 

Total deposits were $5.0 billion at June 30, 2020, an increase of $719.5 million compared to March 31, 2020, an increase of 17.0%. Non-interest-bearing deposits were 35.7% of total deposits at June 30, 2020 compared to 30.5% at March 31, 2020.

The increase in the current quarter was primarily due to:

  • An increase in non-interest-bearing deposits of $477.8 million, from $1.3 billion at March 31, 2020 to $1.8 billion at June 30, 2020, mostly due to increases in business account balances;
  • An increase in interest-bearing checking accounts of $148.2 million, from $355.7 million at March 31, 2020 to $503.9 million at June 30, 2020, mostly due to increases in personal and brokered account balances; and
  • An increase in money market demand deposits of $129.5 million, from $1.1 billion at March 31, 2020 to $1.2 billion at June 30, 2020, largely driven by growth in business and brokered account balances.

Partially offset by:

  • A decrease in time deposits of $74.9 million, from $1.0 billion at March 31, 2020 to $927.0 million at June 30, 2020, principally driven by decreases in personal certificates.

Total borrowings and other liabilities were $654.2 million at June 30, 2020, a decrease of $79.0 million from $733.3 million at March 31, 2020.

Stockholders’ Equity

Total stockholders’ equity was $780.9 million at June 30, 2020, an increase of $18.3 million from $762.7 million at March 31, 2020. 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.

The following table presents the actual regulatory capital dollar amounts and ratios of the Company and Byline Bank as of June 30, 2020:

 

 

Actual

 

 

Minimum Capital
Required

 

 

Required to be
Considered
Well Capitalized

 

June 30, 2020

 

Amount

 

 

Ratio

 

 

Amount

 

 

Ratio

 

 

Amount

 

 

Ratio

 

Total capital to risk weighted assets:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Company

 

$

712,081

 

 

 

15.86

%

 

$

359,161

 

 

 

8.00

%

 

N/A

 

 

N/A

 

Bank

 

 

635,920

 

 

 

14.21

%

 

 

358,043

 

 

 

8.00

%

 

$

447,554

 

 

 

10.00

%

Tier 1 capital to risk weighted assets:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Company

 

$

608,931

 

 

 

13.56

%

 

$

269,371

 

 

 

6.00

%

 

N/A

 

 

N/A

 

Bank

 

 

582,770

 

 

 

13.02

%

 

 

268,532

 

 

 

6.00

%

 

$

358,043

 

 

 

8.00

%

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

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Company

 

$

553,493

 

 

 

12.33

%

 

$

202,028

 

 

 

4.50

%

 

N/A

 

 

N/A

 

Bank

 

 

582,770

 

 

 

13.02

%

 

 

201,399

 

 

 

4.50

%

 

$

290,910

 

 

 

6.50

%

Tier 1 capital to average assets:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Company

 

$

608,931

 

 

 

10.29

%

 

$

236,702

 

 

 

4.00

%

 

N/A

 

 

N/A

 

Bank

 

 

582,770

 

 

 

9.85

%

 

 

236,555

 

 

 

4.00

%

 

$

295,694

 

 

 

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.

On June 26, 2020, the Company completed a public offering of $50.0 million aggregate principal amount of 6.00% fixed-to-floating rate subordinated notes due July 1, 2030. The subordinated notes bear a fixed interest rate of 6.00% until July 1, 2025 and a floating interest rate equal to a benchmark rate, which is expected to be three-month term SOFR plus 588 basis points thereafter until maturity. The subordinated notes are intended to qualify as Tier 2 capital for regulatory capital purposes.

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, July 24, 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 August 7, 2020 by dialing (877) 344-7529; passcode: 10146069.

A slide presentation relating to the second 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 $6.4 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 its Annual Report on Form 10-K for the year ended December 31, 2019, and its Quarterly Report on Form 10-Q for the quarter ended March 31, 2020. 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)

 

 

June 30,

 

 

March 31,

 

 

December 31,

 

 

September 30,

 

 

June 30,

 

(dollars in thousands)

 

2020

 

 

2020

 

 

2019

 

 

2019

 

 

2019

 

ASSETS

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cash and due from banks

 

$

51,818

 

 

$

45,233

 

 

$

48,228

 

 

$

75,275

 

 

$

57,513

 

Interest bearing deposits with other banks

 

 

88,113

 

 

 

74,386

 

 

 

32,509

 

 

 

33,564

 

 

 

31,802

 

Cash and cash equivalents

 

 

139,931

 

 

 

119,619

 

 

 

80,737

 

 

 

108,839

 

 

 

89,315

 

Equity and other securities, at fair value

 

 

8,181

 

 

 

7,413

 

 

 

8,031

 

 

 

7,648

 

 

 

7,662

 

Securities available-for-sale, at fair value

 

 

1,426,871

 

 

 

1,299,483

 

 

 

1,186,292

 

 

 

1,031,933

 

 

 

969,029

 

Securities held-to-maturity, at amortized cost

 

 

4,404

 

 

 

4,408

 

 

 

4,412

 

 

 

4,417

 

 

 

4,421

 

Restricted stock, at cost

 

 

6,232

 

 

 

24,197

 

 

 

22,127

 

 

 

24,331

 

 

 

22,937

 

Loans held for sale

 

 

3,031

 

 

 

13,299

 

 

 

11,732

 

 

 

7,176

 

 

 

18,473

 

Loans and leases:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Loans and leases

 

 

4,391,122

 

 

 

3,860,259

 

 

 

3,785,661

 

 

 

3,831,090

 

 

 

3,863,148

 

Allowance for loan and lease losses

 

 

(51,300

)

 

 

(41,840

)

 

 

(31,936

)

 

 

(31,585

)

 

 

(31,132

)

Net loans and leases

 

 

4,339,822

 

 

 

3,818,419

 

 

 

3,753,725

 

 

 

3,799,505

 

 

 

3,832,016

 

Servicing assets, at fair value

 

 

18,351

 

 

 

17,800

 

 

 

19,471

 

 

 

19,939

 

 

 

19,760

 

Premises and equipment, net

 

 

95,546

 

 

 

96,446

 

 

 

96,140

 

 

 

96,006

 

 

 

96,588

 

Other real estate owned, net

 

 

8,652

 

 

 

9,273

 

 

 

9,896

 

 

 

6,502

 

 

 

6,531

 

Goodwill and other intangible assets, net

 

 

176,470

 

 

 

178,362

 

 

 

180,255

 

 

 

179,543

 

 

 

181,546

 

Bank-owned life insurance

 

 

9,896

 

 

 

9,898

 

 

 

9,750

 

 

 

9,699

 

 

 

9,634

 

Deferred tax assets, net

 

 

37,082

 

 

 

33,845

 

 

 

38,315

 

 

 

33,388

 

 

 

35,737

 

Accrued interest receivable and other assets

 

 

119,049

 

 

 

102,292

 

 

 

100,926

 

 

 

109,352

 

 

 

97,587

 

Total assets

 

$

6,393,518

 

 

$

5,734,754

 

 

$

5,521,809

 

 

$

5,438,278

 

 

$

5,391,236

 

LIABILITIES AND STOCKHOLDERS’ EQUITY

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

LIABILITIES

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Non-interest-bearing demand deposits

 

$

1,768,675

 

 

$

1,290,896

 

 

$

1,279,641

 

 

$

1,221,431

 

 

$

1,240,375

 

Interest-bearing deposits

 

 

3,189,670

 

 

 

2,947,940

 

 

 

2,867,936

 

 

 

2,858,883

 

 

 

2,819,868

 

Total deposits

 

 

4,958,345

 

 

 

4,238,836

 

 

 

4,147,577

 

 

 

4,080,314

 

 

 

4,060,243

 

Other borrowings

 

 

510,414

 

 

 

640,647

 

 

 

539,638

 

 

 

538,290

 

 

 

532,885

 

Subordinated notes, net

 

 

48,777

 

 

 

 

 

 

 

 

 

 

 

 

 

Junior subordinated debentures issued to

capital trusts, net

 

 

36,206

 

 

 

37,462

 

 

 

37,334

 

 

 

37,207

 

 

 

37,059

 

Accrued expenses and other liabilities

 

 

58,841

 

 

 

55,142

 

 

 

47,145

 

 

 

46,601

 

 

 

43,374

 

Total liabilities

 

 

5,612,583

 

 

 

4,972,087

 

 

 

4,771,694

 

 

 

4,702,412

 

 

 

4,673,561

 

STOCKHOLDERS’ EQUITY

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Preferred stock

 

 

10,438

 

 

 

10,438

 

 

 

10,438

 

 

 

10,438

 

 

 

10,438

 

Common stock

 

 

381

 

 

 

380

 

 

 

379

 

 

 

378

 

 

 

378

 

Additional paid-in capital

 

 

583,307

 

 

 

582,517

 

 

 

580,965

 

 

 

579,564

 

 

 

578,828

 

Retained earnings

 

 

168,444

 

 

 

160,652

 

 

 

159,033

 

 

 

144,525

 

 

 

129,379

 

Treasury stock

 

 

(1,668

)

 

 

(1,668

)

 

 

 

 

 

 

 

 

 

Accumulated other comprehensive income

(loss), net of tax

 

 

20,033

 

 

 

10,348

 

 

 

(700

)

 

 

961

 

 

 

(1,348

)

Total stockholders’ equity

 

 

780,935

 

 

 

762,667

 

 

 

750,115

 

 

 

735,866

 

 

 

717,675

 

Total liabilities and stockholders’ equity

$

6,393,518

$

5,734,754

 

 

$

5,521,809

 

$

5,438,278

$

5,391,236

 

BYLINE BANCORP, INC. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF OPERATIONS (unaudited)

 

 

 

Three Months Ended

 

 

Six Months Ended

 

 

 

June 30,

 

 

March 31,

 

 

December 31,

 

 

September 30,

 

 

June 30,

 

 

June 30,

 

 

June 30,

 

(dollars in thousands, except per share data)

 

2020

 

 

2020

 

 

2019

 

 

2019

 

 

2019

 

 

2020

 

 

2019

 

INTEREST AND DIVIDEND INCOME

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest and fees on loans and leases

 

$

50,153

 

 

$

54,158

 

 

$

58,203

 

 

$

63,391

 

 

$

59,524

 

 

$

104,311

 

 

$

113,907

 

Interest on securities

 

 

7,530

 

 

 

8,016

 

 

 

7,212

 

 

 

7,040

 

 

 

6,665

 

 

 

15,546

 

 

 

12,767

 

Other interest and dividend income

 

 

222

 

 

 

992

 

 

 

500

 

 

 

598

 

 

 

571

 

 

 

1,214

 

 

 

1,196

 

Total interest and dividend income

 

 

57,905

 

 

 

63,166

 

 

 

65,915

 

 

 

71,029

 

 

 

66,760

 

 

 

121,071

 

 

 

127,870

 

INTEREST EXPENSE

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Deposits

 

 

4,246

 

 

 

7,804

 

 

 

9,325

 

 

 

9,618

 

 

 

9,306

 

 

 

12,050

 

 

 

17,382

 

Other borrowings

 

 

476

 

 

 

1,897

 

 

 

1,989

 

 

 

2,835

 

 

 

2,265

 

 

 

2,373

 

 

 

4,431

 

Subordinated notes and debentures

 

 

574

 

 

 

640

 

 

 

687

 

 

 

738

 

 

 

741

 

 

 

1,214

 

 

 

1,524

 

Total interest expense

 

 

5,296

 

 

 

10,341

 

 

 

12,001

 

 

 

13,191

 

 

 

12,312

 

 

 

15,637

 

 

 

23,337

 

Net interest income

 

 

52,609

 

 

 

52,825

 

 

 

53,914

 

 

 

57,838

 

 

 

54,448

 

 

 

105,434

 

 

 

104,533

 

PROVISION FOR LOAN AND LEASE LOSSES

 

 

15,518

 

 

 

14,455

 

 

 

4,387

 

 

 

5,931

 

 

 

6,391

 

 

 

29,973

 

 

 

10,390

 

Net interest income after provision

for loan and lease losses

 

 

37,091

 

 

 

38,370

 

 

 

49,527

 

 

 

51,907

 

 

 

48,057

 

 

 

75,461

 

 

 

94,143

 

NON-INTEREST INCOME

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Fees and service charges on deposits

 

 

1,455

 

 

 

1,673

 

 

 

1,635

 

 

 

1,612

 

 

 

1,441

 

 

 

3,128

 

 

 

3,211

 

Loan servicing revenue

 

 

2,980

 

 

 

2,758

 

 

 

2,834

 

 

 

2,692

 

 

 

2,630

 

 

 

5,738

 

 

 

5,169

 

Loan servicing asset revaluation

 

 

(711

)

 

 

(3,064

)

 

 

(2,545

)

 

 

(1,610

)

 

 

(1,223

)

 

 

(3,775

)

 

 

(2,484

)

ATM and interchange fees

 

 

845

 

 

 

1,216

 

 

 

1,150

 

 

 

973

 

 

 

945

 

 

 

2,061

 

 

 

1,662

 

Net gains on sales of securities available-for-sale

 

 

 

 

 

1,375

 

 

 

 

 

 

178

 

 

 

973

 

 

 

1,375

 

 

 

973

 

Change in fair value of equity securities, net

 

 

766

 

 

 

(619

)

 

 

381

 

 

 

(15

)

 

 

551

 

 

 

147

 

 

 

1,050

 

Net gains on sales of loans

 

 

6,456

 

 

 

4,773

 

 

 

8,735

 

 

 

9,405

 

 

 

7,472

 

 

 

11,229

 

 

 

13,705

 

Wealth management and trust income

 

 

608

 

 

 

669

 

 

 

704

 

 

 

653

 

 

 

626

 

 

 

1,277

 

 

 

1,221

 

Other non-interest income

 

 

389

 

 

 

392

 

 

 

1,622

 

 

 

918

 

 

 

768

 

 

 

781

 

 

 

1,664

 

Total non-interest income

 

 

12,788

 

 

 

9,173

 

 

 

14,516

 

 

 

14,806

 

 

 

14,183

 

 

 

21,961

 

 

 

26,171

 

NON-INTEREST EXPENSE

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Salaries and employee benefits

 

 

19,405

 

 

 

24,666

 

 

 

24,228

 

 

 

24,537

 

 

 

23,652

 

 

 

44,071

 

 

 

46,544

 

Occupancy and equipment expense, net

 

 

5,359

 

 

 

5,524

 

 

 

5,241

 

 

 

4,512

 

 

 

5,069

 

 

 

10,883

 

 

 

10,018

 

Loan and lease related expenses

 

 

1,260

 

 

 

1,311

 

 

 

2,648

 

 

 

1,949

 

 

 

1,841

 

 

 

2,571

 

 

 

3,418

 

Legal, audit, and other professional fees

 

 

2,078

 

 

 

2,334

 

 

 

2,340

 

 

 

4,066

 

 

 

2,981

 

 

 

4,412

 

 

 

5,047

 

Data processing

 

 

2,826

 

 

 

2,665

 

 

 

2,678

 

 

 

4,062

 

 

 

3,849

 

 

 

5,491

 

 

 

6,993

 

Net loss recognized on other real estate owned and other related

expenses

 

 

456

 

 

 

519

 

 

 

122

 

 

 

95

 

 

 

252

 

 

 

975

 

 

 

448

 

Other intangible assets amortization expense

 

 

1,892

 

 

 

1,893

 

 

 

2,002

 

 

 

2,003

 

 

 

1,959

 

 

 

3,785

 

 

 

3,732

 

Other non-interest expense

 

 

3,736

 

 

 

4,615

 

 

 

4,435

 

 

 

4,224

 

 

 

4,351

 

 

 

8,351

 

 

 

8,433

 

Total non-interest expense

 

 

37,012

 

 

 

43,527

 

 

 

43,694

 

 

 

45,448

 

 

 

43,954

 

 

 

80,539

 

 

 

84,633

 

INCOME BEFORE PROVISION FOR INCOME

TAXES

 

 

12,867

 

 

 

4,016

 

 

 

20,349

 

 

 

21,265

 

 

 

18,286

 

 

 

16,883

 

 

 

35,681

 

PROVISION FOR INCOME TAXES

 

 

3,728

 

 

 

1,050

 

 

 

4,497

 

 

 

5,923

 

 

 

5,075

 

 

 

4,778

 

 

 

9,873

 

NET INCOME

 

 

9,139

 

 

 

2,966

 

 

 

15,852

 

 

 

15,342

 

 

 

13,211

 

 

 

12,105

 

 

 

25,808

 

Dividends on preferred shares

 

 

195

 

 

 

196

 

 

 

196

 

 

 

196

 

 

 

195

 

 

 

391

 

 

 

391

 

INCOME AVAILABLE TO COMMON STOCKHOLDERS

 

$

8,944

 

 

$

2,770

 

 

$

15,656

 

 

$

15,146

 

 

$

13,016

 

 

$

11,714

 

 

$

25,417

 

EARNINGS PER COMMON SHARE

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic

 

$

0.24

 

 

$

0.07

 

 

$

0.41

 

 

$

0.40

 

 

$

0.35

 

 

$

0.31

 

 

$

0.69

 

Diluted

 

$

0.24

 

 

$

0.07

 

 

$

0.41

 

 

$

0.39

 

 

$

0.34

 

 

$

0.31

 

 

$

0.68

 

BYLINE BANCORP, INC. AND SUBSIDIARIES

SELECTED FINANCIAL DATA (unaudited)

 

 

As of or For the Three Months Ended

 

 

As of or For the Six Months
Ended

 

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

 

June 30,

 

 

March 31,

 

 

December 31,

 

 

September 30,

 

 

June 30,

 

 

June 30,

 

 

June 30,

 

 

 

2020

 

 

2020

 

 

2019

 

 

2019

 

 

2019

 

 

2020

 

 

2019

 

Common Share Data

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic earnings per common share

 

$

0.24

 

 

$

0.07

 

 

$

0.41

 

 

$

0.40

 

 

$

0.35

 

 

$

0.31

 

 

$

0.69

 

Diluted earnings per common share

 

$

0.24

 

 

$

0.07

 

 

$

0.41

 

 

$

0.39

 

 

$

0.34

 

 

$

0.31

 

 

$

0.68

 

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

 

$

0.24

 

 

$

0.09

 

 

$

0.42

 

 

$

0.41

 

 

$

0.41

 

 

$

0.32

 

 

$

0.79

 

Weighted average common shares outstanding (basic)

 

 

37,919,480

 

 

 

37,943,333

 

 

 

37,872,835

 

 

 

37,831,356

 

 

 

37,263,352

 

 

 

37,931,406

 

 

 

36,719,436

 

Weighted average common shares outstanding (diluted)

 

 

38,027,289

 

 

 

38,663,658

 

 

 

38,537,899

 

 

 

38,487,180

 

 

 

37,948,006

 

 

 

38,350,064

 

 

 

37,445,407

 

Common shares outstanding

 

 

38,388,217

 

 

 

38,383,021

 

 

 

38,256,500

 

 

 

38,169,126

 

 

 

38,115,219

 

 

 

38,388,217

 

 

 

38,115,219

 

Cash dividends per common share

 

$

0.03

 

 

$

0.03

 

 

$

0.03

 

 

N/A

 

 

N/A

 

 

$

0.06

 

 

N/A

 

Dividend payout ratio on common stock

 

 

12.50

%

 

 

42.86

%

 

 

7.32

%

 

N/A

 

 

N/A

 

 

 

19.35

%

 

N/A

 

Tangible book value per common share(1)

 

$

15.47

 

 

$

14.95

 

 

$

14.62

 

 

$

14.30

 

 

$

13.79

 

 

$

15.47

 

 

$

13.79

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Key Ratios and Performance Metrics

(annualized where applicable)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net interest margin

 

 

3.71

%

 

 

4.17

%

 

 

4.32

%

 

 

4.62

%

 

 

4.51

%

 

 

3.93

%

 

 

4.47

%

Average cost of deposits

 

 

0.36

%

 

 

0.75

%

 

 

0.88

%

 

 

0.94

%

 

 

0.92

%

 

 

0.54

%

 

 

0.90

%

Efficiency ratio(2)

 

 

53.70

%

 

 

67.16

%

 

 

60.93

%

 

 

59.81

%

 

 

61.19

%

 

 

60.25

%

 

 

61.90

%

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

 

 

53.70

%

 

 

66.00

%

 

 

60.51

%

 

 

58.17

%

 

 

56.02

%

 

 

59.69

%

 

 

57.70

%

Non-interest expense to average assets

 

 

2.41

%

 

 

3.15

%

 

 

3.19

%

 

 

3.32

%

 

 

3.34

%

 

 

2.76

%

 

 

3.33

%

Adjusted non-interest expense to

average assets(1)(3)

 

 

2.41

%

 

 

3.09

%

 

 

3.17

%

 

 

3.23

%

 

 

3.07

%

 

 

2.73

%

 

 

3.12

%

Return on average stockholders' equity

 

 

4.74

%

 

 

1.56

%

 

 

8.43

%

 

 

8.34

%

 

 

7.60

%

 

 

3.16

%

 

 

7.67

%

Adjusted return on average

stockholders' equity(1)(3)(4)

 

 

4.74

%

 

 

1.83

%

 

 

8.54

%

 

 

8.78

%

 

 

9.16

%

 

 

3.29

%

 

 

8.90

%

Return on average assets

 

 

0.59

%

 

 

0.21

%

 

 

1.16

%

 

 

1.12

%

 

 

1.00

%

 

 

0.41

%

 

 

1.02

%

Adjusted return on average

assets(1)(3)(4)

 

 

0.59

%

 

 

0.25

%

 

 

1.17

%

 

 

1.18

%

 

 

1.21

%

 

 

0.43

%

 

 

1.18

%

Non-interest income to total

revenues(1)

 

 

19.56

%

 

 

14.79

%

 

 

21.21

%

 

 

20.38

%

 

 

20.67

%

 

 

17.24

%

 

 

20.02

%

Pre-tax pre-provision return on

average assets(1)

 

 

1.85

%

 

 

1.33

%

 

 

1.81

%

 

 

1.98

%

 

 

1.88

%

 

 

1.60

%

 

 

1.81

%

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

 

 

1.85

%

 

 

1.39

%

 

 

1.83

%

 

 

2.07

%

 

 

2.15

%

 

 

1.63

%

 

 

2.03

%

Return on average tangible common stockholders' equity(1)

 

 

7.05

%

 

 

2.89

%

 

 

12.20

%

 

 

12.22

%

 

 

11.32

%

 

 

4.99

%

 

 

11.35

%

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

 

 

7.05

%

 

 

3.25

%

 

 

12.35

%

 

 

12.82

%

 

 

13.44

%

 

 

5.17

%

 

 

13.00

%

Non-interest-bearing deposits to total deposits

 

 

35.67

%

 

 

30.45

%

 

 

30.85

%

 

 

29.93

%

 

 

30.55

%

 

 

35.67

%

 

 

30.55

%

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

 

 

88.62

%

 

 

91.38

%

 

 

91.56

%

 

 

94.07

%

 

 

95.60

%

 

 

88.62

%

 

 

95.60

%

Deposits to total liabilities

 

 

88.34

%

 

 

85.25

%

 

 

86.92

%

 

 

86.77

%

 

 

86.88

%

 

 

88.34

%

 

 

86.88

%

Deposits per branch

 

$

86,989

 

 

$

74,366

 

 

$

67,993

 

 

$

66,890

 

 

$

66,561

 

 

$

86,989

 

 

$

66,561

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Asset Quality Ratios

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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

 

 

0.99

%

 

 

1.31

%

 

 

1.00

%

 

 

1.09

%

 

 

0.95

%

 

 

0.99

%

 

 

0.95

%

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

 

 

1.17

%

 

 

1.08

%

 

 

0.84

%

 

 

0.82

%

 

 

0.81

%

 

 

1.17

%

 

 

0.81

%

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

 

 

0.57

%

 

 

0.48

%

 

 

0.42

%

 

 

0.56

%

 

 

0.25

%

 

 

0.53

%

 

 

0.25

%

Acquisition accounting adjustments(4)

 

$

19,324

 

 

$

25,889

 

 

$

28,511

 

 

$

31,053

 

 

$

37,109

 

 

$

19,324

 

 

$

37,109

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Capital Ratios

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Common equity to total assets

 

 

12.05

%

 

 

13.12

%

 

 

13.40

%

 

 

13.34

%

 

 

13.12

%

 

 

12.05

%

 

 

13.12

%

Tangible common equity to tangible assets(1)

 

 

9.55

%

 

 

10.33

%

 

 

10.47

%

 

 

10.38

%

 

 

10.09

%

 

 

9.55

%

 

 

10.09

%

Leverage ratio

 

 

10.29

%

 

 

11.18

%

 

 

11.39

%

 

 

11.14

%

 

 

11.09

%

 

 

10.29

%

 

 

11.09

%

Common equity tier 1 capital ratio

 

 

12.33

%

 

 

12.24

%

 

 

12.36

%

 

 

12.12

%

 

 

11.65

%

 

 

12.33

%

 

 

11.65

%

Tier 1 capital ratio

 

 

13.56

%

 

 

13.52

%

 

 

13.67

%

 

 

13.43

%

 

 

12.96

%

 

 

13.56

%

 

 

12.96

%

Total capital ratio

 

 

15.86

%

 

 

14.50

%

 

 

14.43

%

 

 

14.19

%

 

 

13.71

%

 

 

15.86

%

 

 

13.71

%

 (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 June 30,

 

 

 

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

 

$

58,971

 

 

$

25

 

 

 

0.17

%

 

$

35,346

 

 

$

245

 

 

 

2.78

%

Loans and leases(1)

 

 

4,283,654

 

 

 

50,153

 

 

 

4.71

%

 

 

3,759,634

 

 

 

59,524

 

 

 

6.35

%

Taxable securities

 

 

1,243,604

 

 

 

7,021

 

 

 

2.27

%

 

 

975,693

 

 

 

6,563

 

 

 

2.70

%

Tax-exempt securities(2)

 

 

117,340

 

 

 

706

 

 

 

2.42

%

 

 

68,314

 

 

 

428

 

 

 

2.52

%

Total interest-earning assets

 

$

5,703,569

 

 

$

57,905

 

 

 

4.08

%

 

$

4,838,987

 

 

$

66,760

 

 

 

5.53

%

Allowance for loan and lease losses

 

 

(43,009

)

 

 

 

 

 

 

 

 

 

 

(28,203

)

 

 

 

 

 

 

 

 

All other assets

 

 

526,414

 

 

 

 

 

 

 

 

 

 

 

464,036

 

 

 

 

 

 

 

 

 

TOTAL ASSETS

 

$

6,186,974

 

 

 

 

 

 

 

 

 

 

$

5,274,820

 

 

 

 

 

 

 

 

 

LIABILITIES AND STOCKHOLDERS’

EQUITY

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Deposits

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest checking

 

$

392,070

 

 

$

165

 

 

 

0.17

%

 

$

333,725

 

 

$

452

 

 

 

0.54

%

Money market accounts

 

 

1,214,713

 

 

 

946

 

 

 

0.31

%

 

 

695,986

 

 

 

1,790

 

 

 

1.03

%

Savings

 

 

511,049

 

 

 

61

 

 

 

0.05

%

 

 

477,775

 

 

 

118

 

 

 

0.10

%

Time deposits

 

 

976,710

 

 

 

3,074

 

 

 

1.27

%

 

 

1,278,488

 

 

 

6,946

 

 

 

2.18

%

 

 

 

3,094,542

 

 

 

4,246

 

 

 

0.55

%

 

 

2,785,974

 

 

 

9,306

 

 

 

1.34

%

Other borrowings

 

 

534,766

 

 

 

476

 

 

 

0.36

%

 

 

462,841

 

 

 

2,265

 

 

 

1.96

%

Subordinated notes and debentures

 

 

40,180

 

 

 

574

 

 

 

5.75

%

 

 

36,963

 

 

 

741

 

 

 

8.04

%

Total borrowings

 

 

574,946

 

 

 

1,050

 

 

 

0.73

%

 

 

499,804

 

 

 

3,006

 

 

 

2.41

%

Total interest-bearing liabilities

 

$

3,669,488

 

 

$

5,296

 

 

 

0.58

%

 

$

3,285,778

 

 

$

12,312

 

 

 

1.50

%

Non-interest-bearing demand deposits

 

 

1,692,723

 

 

 

 

 

 

 

 

 

 

 

1,254,173

 

 

 

 

 

 

 

 

 

Other liabilities

 

 

48,884

 

 

 

 

 

 

 

 

 

 

 

37,941

 

 

 

 

 

 

 

 

 

Total stockholders’ equity

 

 

775,879

 

 

 

 

 

 

 

 

 

 

 

696,928

 

 

 

 

 

 

 

 

 

TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY

 

$

6,186,974

 

 

 

 

 

 

 

 

 

 

$

5,274,820

 

 

 

 

 

 

 

 

 

Net interest spread(3)

 

 

 

 

 

 

 

 

 

 

3.50

%

 

 

 

 

 

 

 

 

 

 

4.03

%

Net interest income

 

 

 

 

 

$

52,609

 

 

 

 

 

 

 

 

 

 

$

54,448

 

 

 

 

 

Net interest margin(4)

 

 

 

 

 

 

 

 

 

 

3.71

%

 

 

 

 

 

 

 

 

 

 

4.51

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net loan accretion impact on margin

 

 

 

 

 

$

3,172

 

 

 

0.22

%

 

 

 

 

 

$

4,868

 

 

 

0.40

%

 (1)

 

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

 (2)

 

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

 (3)

 

Represents the average rate earned on interest-earning assets minus the average rate paid on interest-bearing liabilities.

 (4)

 

Represents net interest income (annualized) divided by total average earning assets.

 (5)

 

Average balances are average daily balances.

BYLINE BANCORP, INC. AND SUBSIDIARIES

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

 

 

For the Six Months Ended June 30,

 

 

 

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

 

$

48,952

 

 

$

182

 

 

 

0.75

%

 

$

50,969

 

 

$

546

 

 

 

2.16

%

Loans and leases(1)

 

 

4,041,433

 

 

 

104,311

 

 

 

5.19

%

 

 

3,647,427

 

 

 

113,907

 

 

 

6.30

%

Taxab