CHICAGO--(BUSINESS WIRE)--Byline Bancorp, Inc. (NYSE: BY), today reported:
For the quarter | Full Year Highlights | |||||||||||
4Q23 | 3Q23 | 4Q22 | ||||||||||
Financial Results (in thousands) | • Net income increased $20.1 million, or 22.9% | |||||||||||
Net interest income | $ | 86,285 | $ | 92,452 | $ | 76,604 | ||||||
Non-interest income | 14,503 | 12,376 | 11,455 | • Positive operating leverage of 6.1% | ||||||||
Total Revenue(1) | 100,788 | 104,828 | 88,059 | driven by 28.0% increase in PTPP | ||||||||
Non-interest expense | 53,584 | 57,891 | 50,500 | |||||||||
Pre-tax pre-provision net income (PTPP)(1) | 47,204 | 46,937 | 37,559 | • Net interest income up $65.3 million, | ||||||||
Provision for credit losses | 7,235 | 8,803 | 5,826 | or 24.6%; NIM up 31 bps to 4.31% | ||||||||
Provision for income taxes | 10,365 | 9,912 | 7,366 | |||||||||
Net Income | $ | 29,604 | $ | 28,222 | $ | 24,367 | • Assets increased by $1.5 billion, through | |||||
organic growth and Inland acquisition | ||||||||||||
Per Share | ||||||||||||
Diluted EPS | $ | 0.68 | $ | 0.65 | $ | 0.65 | 4Q23 Income Statement Highlights | |||||
Dividends declared per common share | 0.09 | 0.09 | 0.09 | • Adjusted net income(1) of $31.8 million, | ||||||||
Book value per share | 22.62 | 21.04 | 20.43 | or $0.73 per adjusted diluted share(1) | ||||||||
Tangible book value per share(1) | 17.98 | 16.35 | 16.19 | |||||||||
• Record PTPP(1) of $47.2 million | ||||||||||||
Balance Sheet & Credit Quality | ||||||||||||
Total deposits | $ | 7,176,999 | $ | 6,953,690 | $ | 5,695,121 | • Adjusted efficiency ratio(1) of 48.64% | |||||
Total loans and leases | 6,702,311 | 6,620,602 | 5,469,081 | |||||||||
Net charge-offs | 12,186 | 5,430 | 3,179 | 4Q23 Balance Sheet Highlights | ||||||||
Allowance for credit losses (ACL) | 101,686 | 105,696 | 81,924 | • Deposit growth of $223.3 million, or 12.7%(2) | ||||||||
ACL to total loans and leases held for investment | 1.52% | 1.60% | 1.51% | |||||||||
• Loan growth of $81.7 million, or 4.9%(2) | ||||||||||||
Select Ratios | ||||||||||||
Efficiency ratio(1) | 51.63% | 53.75% | 55.53% | • Loan/deposit ratio of 93.39%, down 182 bps | ||||||||
Return on average assets (ROAA) | 1.34% | 1.30% | 1.33% | |||||||||
Return on average stockholders' equity | 12.56% | 12.11% | 12.92% | • Reduced reliance on Brokered CDs and FHLB | ||||||||
Return on average tangible common equity(1) | 16.68% | 16.15% | 17.21% | advances, down $384.1 million | ||||||||
Net Interest Margin (NIM) | 4.08% | 4.46% | 4.39% | |||||||||
Common equity to total assets | 11.15% | 10.29% | 10.40% | • Common equity to assets of 11.15%; | ||||||||
Tangible common equity to tangible assets(1) | 9.06% | 8.18% | 8.42% | TCE/TA(1) of 9.06%, up 88 bps | ||||||||
Common Equity Tier 1 | 10.35% | 10.08% | 10.20% | |||||||||
(1) | Represents non-GAAP financial measures. See "Reconciliation of non-GAAP Financial Measures" for a reconciliation to the most directly comparable GAAP financial measure. |
(2) | Annualized |
CEO/President Commentary |
Roberto R. Herencia, Executive Chairman and CEO of Byline Bancorp, commented, "During 2023, we completed a number of strategic initiatives, including the successful merger and integration of Inland Bancorp, Inc. and delivered sound fourth quarter and strong full-year financial results. We were able to meet the needs of our customers and the markets we serve as total deposits increased $1.5 billion and total loans and leases increased $1.2 billion during the year. This stable balance sheet growth helped us achieve the highest level of revenue in Byline's history. We enter 2024 on solid footing and with great momentum to continue growing the value of our franchise."
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Board Authorizes New Stock Repurchase Program
On December 6, 2023, the Company's Board of Directors approved a new stock repurchase program that authorizes the Company to purchase up to 1.25 million shares of the Company's outstanding common stock. The new program is effective January 1, 2024 until December 31, 2024. Under the previous stock repurchase program that expired on December 31, 2023, the Company did not repurchase any shares during 2023.
Board Declares Cash Dividend of $0.09 per Share
On January 23, 2024, the Company's Board of Directors declared a cash dividend of $0.09 per share, payable on February 20, 2024, to stockholders of record of the Company's common stock as of February 6, 2024.
STATEMENTS OF OPERATIONS HIGHLIGHTS
Net Interest Income
Net interest income for the fourth quarter of 2023 was $86.3 million, a decrease of $6.2 million, or 6.7%, from the third quarter of 2023. The decrease in net interest income was primarily due to an increase of $6.1 million in deposit interest expense due to growth and higher rates, and a decrease of $1.4 million in interest income and fees on loans and leases mainly due to lower accretion income on acquired loans of $5.2 million, offset by growth.
Tax-equivalent net interest margin(1) for the fourth quarter of 2023 was 4.09%, a decrease of 38 basis points compared to the third quarter of 2023. Total net loan accretion income impact on the margin contributed 24 basis points to the net interest margin for the current quarter compared to 50 basis points for the prior quarter.
The average cost of total deposits was 2.42% for the fourth quarter of 2023, an increase of 29 basis points compared to the third quarter of 2023, as a result of higher rates on money market accounts and time deposits. Average non-interest-bearing demand deposits were 27.5% of average total deposits for the current quarter compared to 28.8% during the prior quarter.
Net interest income for the year ended December 31, 2023 was $330.6 million, an increase of $65.3 million, or 24.6%, from the year ended December 31, 2022. The increase in net interest income was primarily due to an increase of $167.6 million in interest income and fees on loans and leases due to growth and accretion income on acquired loans; partially offset by an increase of $101.6 million in deposit interest expense due to higher rates paid and growth.
Tax-equivalent net interest margin(1) for the year ended December 31, 2023 was 4.32%, an increase of 31 basis points compared to year ended December 31, 2022. Total net loan accretion income impact on the margin contributed 22 basis points to the net interest margin for the current year compared to seven basis points for the prior year.
The average cost of total deposits was 1.90% for the year ended December 31, 2023, an increase of 154 basis points compared to the year ended December 31, 2022, as a result of higher rates on money market accounts and time deposits. Average non-interest-bearing demand deposits were 30.7% of average total deposits for the current year compared to 40.4% during the prior year.
Provision for Credit Losses
The provision for credit losses was $7.2 million for the fourth quarter of 2023, a decrease of $1.6 million compared to $8.8 million for the third quarter of 2023, mainly attributed to a $2.7 million provision allocated for the acquired non-credit-deteriorated loans resulting from acquisition accounting taken in the prior quarter, partially offset by impairments on non-performing loans. The provision for credit losses for the current quarter is comprised of a provision for loan and lease losses of $8.2 million and a recapture for unfunded commitments of $940,000.
The provision for credit losses was $31.7 million for the year ended December 31, 2023, an increase of $7.8 million compared to $23.9 million for the year ended December 31, 2022, mainly attributed to an increase in non-performing loans and acquired non-credit-deteriorated loans. The provision for credit losses for the current year is comprised of a provision for loan and lease losses of $32.2 million and a recapture for unfunded commitments of $567,000.
(1) | Represents non-GAAP financial measures. See "Reconciliation of non-GAAP Financial Measures" for a reconciliation of our non-GAAP measures to the most directly comparable GAAP financial measure. |
Non-interest Income
Non-interest income for the fourth quarter of 2023 was $14.5 million, an increase of $2.1 million, or 17.2%, compared to $12.4 million for the third quarter of 2023. The increase in total non-interest income was primarily due to a $2.4 million decrease in the downward valuation of the loan servicing asset reflecting lower discount rate and improved secondary market conditions, and a $1.2 million gain on the change in fair value of equity securities, partially offset by a decrease of $993,000 in the net gains on sales of loans due to a lower volume of loans sold. During the fourth quarter of 2023, we sold $89.1 million of U.S. government guaranteed loans compared to $101.1 million during the third quarter of 2023.
Non-interest income for the year ended December 31, 2023 was $56.3 million, a decrease of $1.0 million, or 1.7%, compared to $57.3 million for the year ended December 31, 2022. The decrease in total non-interest income was primarily due to a decrease in net gains on sales of loans of $9.1 million, partially offset by a $6.7 million decrease in the downward valuation on the loan servicing asset, reflecting a lower discount rate and improved secondary market conditions. During the current year, we sold $348.4 million of U.S. government guaranteed loans compared to $382.2 million during the prior year.
Non-interest Expense
Non-interest expense for the fourth quarter of 2023 was $53.6 million, a decrease of $4.3 million, or 7.4%, from $57.9 million for the third quarter of 2023. The decrease in total non-interest expense was mainly due to a decrease of $3.0 million in salaries and employee benefits, and decreases of $1.5 million in both data processing and legal, audit and other professional, primarily driven by merger-related expenses taken in the third quarter.
Our efficiency ratio was 51.63% for the fourth quarter of 2023 compared to 53.75% for the third quarter of 2023, an improvement of 212 basis points. Excluding significant items, our adjusted efficiency ratio(1) for the fourth quarter 2023 was 48.64%, compared to 47.35% for the third quarter of 2023.
Non-interest expense for the year ended December 31, 2023 was $209.6 million, an increase of $25.5 million, or 13.9%, from $184.1 million for the year ended December 31, 2022. The increase in total non-interest expense was mainly due to the Inland acquisition.
Our efficiency ratio was 52.62% for the year ended December 31, 2023 compared to 54.99% for the year ended December 31, 2022, an improvement of 237 basis points. Excluding significant items, our adjusted efficiency ratio(1) for the current year was 49.61%, compared to 54.70% for the prior year.
Income Taxes
We recorded income tax expense of $10.4 million during the fourth quarter of 2023, compared to $9.9 million during the third quarter of 2023. The effective tax rate was 25.9% and 26.0% for the fourth quarter of 2023 and third quarter of 2023, respectively.
We recorded income tax expense of $37.8 million during the year ended December 31, 2023, compared to $26.7 million during the year ended December 31, 2022. The effective tax rate was 25.9% and 23.3% for the current year and prior year, respectively.
(1) | Represents non-GAAP financial measures. See "Reconciliation of non-GAAP Financial Measures" for a reconciliation of our non-GAAP measures to the most directly comparable GAAP financial measure. |
STATEMENTS OF FINANCIAL CONDITION HIGHLIGHTS
Assets
Total assets were $8.9 billion as of December 31, 2023, a decrease of $61.4 million, or 0.7%, compared to $8.9 billion at September 30, 2023 and an increase of $1.5 billion from $7.4 billion at December 31, 2022.
The current quarter decrease was primarily due to a decrease in cash and cash equivalents of $202.8 million due to cash management strategies, offset by an increase in net loans and leases of $75.0 million mainly due to the increases in commercial banking and lease financings, and an increase in securities available-for-sale of $102.6 million, driven by an increase in fair values. The increase from the prior year is primarily due to the Inland acquisition and organic loan and lease growth.
Non-performing loans and leases were $64.1 million at December 31, 2023, an increase of $12.0 million from $52.1 million at September 30, 2023, and $28.0 million from $36.0 million at December 31, 2022. The increases were primarily the result of increases to purchased credit deteriorated loans and increases in non-performing commercial real estate loans and commercial and industrial loans.
Allowance for Credit Losses ("ACL") - Loans and Leases
The ACL was $101.7 million as of December 31, 2023, a decrease of $4.0 million, or 3.8%, from $105.7 million at September 30, 2023, mainly due to net charge-offs. The ACL increase of $19.8 million from $81.9 million as of December 31, 2022 is mainly due to loan growth, adjustment for acquired purchase credit deteriorated loans, and an increase in non-performing loans.
Net charge-offs of loans and leases during the fourth quarter of 2023 were $12.2 million, or 0.73% of average loans and leases, on an annualized basis. This was an increase of $6.8 million compared to net charge-offs of $5.4 million, or 0.33% of average loans and leases, during the third quarter of 2023. Increases in the current quarter are primarily due to the resolution of impaired commercial and industrial loans and commercial real estate loans.
Net charge-offs of loans and leases during the year ended December 31, 2023 were $23.1 million, or 0.38% of average loans and leases. This was an increase of $15.1 million compared to net charge-offs of $7.9 million, or 0.16% of average loans and leases, during the year ended December 31, 2022. Increases for the full year were mainly driven by resolutions on purchased credit deteriorated loans and commercial real estate loans.
Deposits and Other Liabilities
Total deposits increased $223.3 million to $7.2 billion at December 31, 2023 compared to $7.0 billion at September 30, 2023 and $5.7 billion as of December 31, 2022. The increase in deposits in the current quarter was mainly due to organic growth. Time deposit growth of $127.2 million was principally due to increased personal time deposits. Money market growth of $203.8 million was due to increases in consumer and commercial deposits. Non-interest-bearing demand deposits decreased $54.0 million primarily due to lower consumer deposits. Increases for the full year were primarily driven by the Inland acquisition and organic deposit growth, and were impacted by shifting deposit mix due to the rising interest rate environment.
Total borrowings and other liabilities were $714.8 million at December 31, 2023, a decrease of $354.8 million from $1.1 billion at September 30, 2023, and a decrease of $187.0 million from $902.0 million at December 31, 2022. These decreases were primarily driven by lower Federal Home Loan Bank advances.
Stockholders' Equity
Total stockholders' equity was $990.2 million at December 31, 2023, increase of $70.2 million from $919.9 million at September 30, 2023, and an increase of $224.5 million from December 31, 2022. The quarterly increase was primarily due to increases in other comprehensive income and retained earnings as a result of net income. The full year increase was primarily due to merger consideration and retained earnings as a result of net income.
(1) | Represents non-GAAP financial measures. See "Reconciliation of non-GAAP Financial Measures" for a reconciliation of our non-GAAP measures to the most directly comparable GAAP financial measure. |
Conference Call, Webcast and Slide Presentation
We will host a conference call and webcast at 9:00 a.m. Central Time on Friday, January 26, 2024, to discuss our quarterly financial results. Analysts and investors may participate in the question-and-answer session. The call can be accessed via telephone at (833) 470-1428; passcode 183253. A recorded replay can be accessed through February 9, 2024, by dialing (866) 813-9403; passcode: 953063.
A slide presentation relating to our fourth quarter 2023 results will be accessible prior to the conference call. The slide presentation and webcast of the conference call can be accessed on our investor relations website at www.bylinebancorp.com.
About Byline Bancorp, Inc.
Headquartered in Chicago, Byline Bancorp, Inc. is the parent company of Byline Bank, a full service commercial bank serving small- and medium-sized businesses, financial sponsors, and consumers. Byline Bank has approximately $8.9 billion in assets and operates 48 branch locations throughout the Chicago and Milwaukee metropolitan areas. Byline Bank offers a broad range of commercial and community banking products and services including small ticket equipment leasing solutions and is one of the top Small Business Administration lenders in the United States.
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 judgment and analysis, which may or may not prove to be correct, and which are subject to uncertainties and contingencies outside the control of Byline and its respective affiliates, directors, employees and other representatives, which could cause actual results to differ materially from those presented in this communication.
No representations, warranties or guarantees are or will be made by Byline as to the reliability, accuracy or completeness of any forward-looking statements contained in this communication or that such forward-looking statements are or will remain based on reasonable assumptions. You should not place undue reliance on any forward-looking statements contained in this communication.
Certain risks and important factors that could affect Byline's future results are identified in our Annual Report on Form 10-K and other reports we file with the Securities and Exchange Commission, including among other things under the heading "Risk Factors" in our Annual Report on Form 10-K for the year ended December 31, 2022. Any forward-looking statement speaks only as of the date on which it is made, and Byline undertakes no obligation to update any forward-looking statement, whether to reflect events or circumstances after the date on which the statement is made, to reflect new information or the occurrence of unanticipated events, or otherwise unless required under the federal securities laws.
BYLINE BANCORP, INC. AND SUBSIDIARIES | ||||||||||||
CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION (unaudited) | ||||||||||||
December 31, | September 30, | December 31, | ||||||||||
(dollars in thousands) | 2023 | 2023 | 2022 | |||||||||
ASSETS | ||||||||||||
Cash and due from banks | $ | 60,431 | $ | 71,248 | $ | 62,274 | ||||||
Interest bearing deposits with other banks | 165,705 | 357,640 | 117,079 | |||||||||
Cash and cash equivalents | 226,136 | 428,888 | 179,353 | |||||||||
Equity and other securities, at fair value | 8,743 | 7,902 | 7,989 | |||||||||
Securities available-for-sale, at fair value | 1,342,480 | 1,239,929 | 1,174,431 | |||||||||
Securities held-to-maturity, at amortized cost | 1,157 | 1,157 | 2,705 | |||||||||
Restricted stock, at cost | 16,304 | 30,505 | 28,202 | |||||||||
Loans held for sale | 18,005 | 7,299 | 47,823 | |||||||||
Loans and leases: | ||||||||||||
Loans and leases | 6,684,306 | 6,613,303 | 5,421,258 | |||||||||
Allowance for credit losses - loans and leases | (101,686 | ) | (105,696 | ) | (81,924 | ) | ||||||
Net loans and leases | 6,582,620 | 6,507,607 | 5,339,334 | |||||||||
Servicing assets, at fair value | 19,844 | 19,743 | 19,172 | |||||||||
Premises and equipment, net | 66,627 | 67,121 | 56,798 | |||||||||
Other real estate owned, net | 1,200 | 1,671 | 4,717 | |||||||||
Goodwill and other intangible assets, net | 203,478 | 205,028 | 158,887 | |||||||||
Bank-owned life insurance | 96,900 | 96,268 | 82,093 | |||||||||
Deferred tax assets, net | 50,058 | 89,841 | 68,213 | |||||||||
Accrued interest receivable and other assets | 248,415 | 240,409 | 193,224 | |||||||||
Total assets | $ | 8,881,967 | $ | 8,943,368 | $ | 7,362,941 | ||||||
LIABILITIES AND STOCKHOLDERS' EQUITY | ||||||||||||
LIABILITIES | ||||||||||||
Non-interest-bearing demand deposits | $ | 1,905,876 | $ | 1,959,855 | $ | 2,138,645 | ||||||
Interest-bearing deposits | 5,271,123 | 4,993,835 | 3,556,476 | |||||||||
Total deposits | 7,176,999 | 6,953,690 | 5,695,121 | |||||||||
Other borrowings | 395,190 | 713,233 | 640,399 | |||||||||
Subordinated notes, net | 73,866 | 73,822 | 73,691 | |||||||||
Junior subordinated debentures issued to
| 70,452 | 70,336 | 37,338 | |||||||||
Accrued expenses and other liabilities | 175,309 | 212,342 | 150,576 | |||||||||
Total liabilities | 7,891,816 | 8,023,423 | 6,597,125 | |||||||||
STOCKHOLDERS' EQUITY | ||||||||||||
Common stock | 451 | 450 | 389 | |||||||||
Additional paid-in capital | 710,488 | 708,615 | 598,297 | |||||||||
Retained earnings | 429,036 | 403,368 | 335,794 | |||||||||
Treasury stock | (49,707 | ) | (50,329 | ) | (51,114 | ) | ||||||
Accumulated other comprehensive loss, net of tax | (100,117 | ) | (142,159 | ) | (117,550 | ) | ||||||
Total stockholders' equity | 990,151 | 919,945 | 765,816 | |||||||||
Total liabilities and stockholders' equity | $ | 8,881,967 | $ | 8,943,368 | $ | 7,362,941 | ||||||
BYLINE BANCORP, INC. AND SUBSIDIARIES | ||||||||||||||||||||
CONSOLIDATED STATEMENTS OF OPERATIONS (unaudited) | ||||||||||||||||||||
Three Months Ended | Year Ended | |||||||||||||||||||
(dollars in thousands, | December 31, | September 30, | December 31, | December 31, | December 31, | |||||||||||||||
except per share data) | 2023 | 2023 | 2022 | 2023 | 2022 | |||||||||||||||
INTEREST AND DIVIDEND INCOME | ||||||||||||||||||||
Interest and fees on loans and leases | $ | 124,042 | $ | 125,465 | $ | 85,720 | $ | 440,984 | $ | 273,412 | ||||||||||
Interest on securities | 9,227 | 8,415 | 6,569 | 30,801 | 25,390 | |||||||||||||||
Other interest and dividend income | 2,345 | 2,710 | 1,515 | 7,693 | 2,757 | |||||||||||||||
Total interest and dividend income | 135,614 | 136,590 | 93,804 | 479,478 | 301,559 | |||||||||||||||
INTEREST EXPENSE | ||||||||||||||||||||
Deposits | 43,252 | 37,163 | 10,610 | 121,436 | 19,796 | |||||||||||||||
Other borrowings | 3,051 | 3,981 | 4,598 | 17,161 | 9,322 | |||||||||||||||
Subordinated notes and debentures | 3,026 | 2,994 | 1,992 | 10,260 | 7,111 | |||||||||||||||
Total interest expense | 49,329 | 44,138 | 17,200 | 148,857 | 36,229 | |||||||||||||||
Net interest income | 86,285 | 92,452 | 76,604 | 330,621 | 265,330 | |||||||||||||||
PROVISION FOR CREDIT LOSSES | 7,235 | 8,803 | 5,826 | 31,653 | 23,879 | |||||||||||||||
Net interest income after provision for
| 79,050 | 83,649 | 70,778 | 298,968 | 241,451 | |||||||||||||||
NON-INTEREST INCOME | ||||||||||||||||||||
Fees and service charges on deposits | 2,486 | 2,372 | 2,081 | 9,211 | 8,152 | |||||||||||||||
Loan servicing revenue | 3,377 | 3,369 | 3,293 | 13,503 | 13,479 | |||||||||||||||
Loan servicing asset revaluation | (1,234 | ) | (3,646 | ) | (3,534 | ) | (5,089 | ) | (11,743 | ) | ||||||||||
ATM and interchange fees | 1,082 | 1,205 | 1,250 | 4,462 | 4,437 | |||||||||||||||
Net realized gains on securities available-for-sale | - | - | - | - | 50 | |||||||||||||||
Change in fair value of equity securities, net | 841 | (313 | ) | 710 | 1,071 | (603 | ) | |||||||||||||
Net gains on sales of loans | 5,480 | 6,473 | 5,509 | 22,805 | 31,899 | |||||||||||||||
Wealth management and trust income | 1,256 | 939 | 864 | 4,158 | 3,807 | |||||||||||||||
Other non-interest income | 1,215 | 1,977 | 1,282 | 6,194 | 7,836 | |||||||||||||||
Total non-interest income | 14,503 | 12,376 | 11,455 | 56,315 | 57,314 | |||||||||||||||
NON-INTEREST EXPENSE | ||||||||||||||||||||
Salaries and employee benefits | 31,974 | 34,969 | 31,808 | 126,979 | 118,051 | |||||||||||||||
Occupancy and equipment expense, net | 4,346 | 5,314 | 3,532 | 18,508 | 16,988 | |||||||||||||||
Impairment charge on assets held for sale | 1,980 | - | 372 | 2,000 | 372 | |||||||||||||||
Loan and lease related expenses | 649 | 836 | 1,126 | 2,936 | 1,707 | |||||||||||||||
Legal, audit, and other professional fees | 2,352 | 3,805 | 3,204 | 12,946 | 10,357 | |||||||||||||||
Data processing | 4,982 | 6,472 | 3,406 | 19,509 | 13,358 | |||||||||||||||
Net loss recognized on other real estate
| 89 | 111 | 221 | 385 | 708 | |||||||||||||||
Other intangible assets amortization expense | 1,550 | 1,551 | 1,596 | 6,011 | 6,671 | |||||||||||||||
Other non-interest expense | 5,662 | 4,833 | 5,235 | 20,329 | 15,870 | |||||||||||||||
Total non-interest expense | 53,584 | 57,891 | 50,500 | 209,603 | 184,082 | |||||||||||||||
INCOME BEFORE PROVISION FOR INCOME TAXES | 39,969 | 38,134 | 31,733 | 145,680 | 114,683 | |||||||||||||||
PROVISION FOR INCOME TAXES | 10,365 | 9,912 | 7,366 | 37,802 | 26,729 | |||||||||||||||
NET INCOME | $ | 29,604 | $ | 28,222 | $ | 24,367 | $ | 107,878 | $ | 87,954 | ||||||||||
Dividends on preferred shares | - | - | - | - | 196 | |||||||||||||||
INCOME AVAILABLE TO COMMON STOCKHOLDERS | $ | 29,604 | $ | 28,222 | $ | 24,367 | $ | 107,878 | $ | 87,758 | ||||||||||
EARNINGS PER COMMON SHARE | ||||||||||||||||||||
Basic | $ | 0.69 | $ | 0.66 | $ | 0.66 | $ | 2.69 | $ | 2.37 | ||||||||||
Diluted | $ | 0.68 | $ | 0.65 | $ | 0.65 | $ | 2.67 | $ | 2.34 | ||||||||||
BYLINE BANCORP, INC. AND SUBSIDIARIES | |||||||||||||||||||
SELECTED FINANCIAL DATA (unaudited) | |||||||||||||||||||
As of or For the Three Months Ended | As of or For the Year Ended | ||||||||||||||||||
(dollars in thousands, except share | December 31, | September 30, | December 31, | December 31, | December 31, | ||||||||||||||
and per share data) | 2023 | 2023 | 2022 | 2023 | 2022 | ||||||||||||||
Earnings per Common Share | |||||||||||||||||||
Basic earnings per common share | $ | 0.69 | $ | 0.66 | $ | 0.66 | $ | 2.69 | $ | 2.37 | |||||||||
Diluted earnings per common share | $ | 0.68 | $ | 0.65 | $ | 0.65 | $ | 2.67 | $ | 2.34 | |||||||||
Adjusted diluted earnings per common share(1)(3) | $ | 0.73 | $ | 0.77 | $ | 0.67 | $ | 2.89 | $ | 2.36 | |||||||||
Weighted average common shares outstanding (basic) | 43,065,294 | 43,025,927 | 36,856,221 | 40,045,208 | 36,972,972 | ||||||||||||||
Weighted average common shares outstanding (diluted) | 43,537,778 | 43,458,110 | 37,360,113 | 40,445,553 | 37,476,120 | ||||||||||||||
Common shares outstanding | 43,764,056 | 43,719,203 | 37,492,775 | 43,764,056 | 37,492,775 | ||||||||||||||
Cash dividends per common share | $ | 0.09 | $ | 0.09 | $ | 0.09 | $ | 0.36 | $ | 0.36 | |||||||||
Dividend payout ratio on common stock | 13.24 | % | 13.85 | % | 13.85 | % | 13.48 | % | 15.38 | % | |||||||||
Book value per common share | $ | 22.62 | $ | 21.04 | $ | 20.43 | $ | 22.62 | $ | 20.43 | |||||||||
Tangible book value per common share(1) | $ | 17.98 | $ | 16.35 | $ | 16.19 | $ | 17.98 | $ | 16.19 | |||||||||
Key Ratios and Performance Metrics
| |||||||||||||||||||
Net interest margin | 4.08 | % | 4.46 | % | 4.39 | % | 4.31 | % | 4.00 | % | |||||||||
Net interest margin, fully taxable equivalent (1)(4) | 4.09 | % | 4.47 | % | 4.40 | % | 4.32 | % | 4.01 | % | |||||||||
Average cost of deposits | 2.42 | % | 2.13 | % | 0.73 | % | 1.90 | % | 0.36 | % | |||||||||
Efficiency ratio(1)(2) | 51.63 | % | 53.75 | % | 55.53 | % | 52.62 | % | 54.99 | % | |||||||||
Adjusted efficiency ratio(1)(2)(3) | 48.64 | % | 47.35 | % | 54.50 | % | 49.61 | % | 54.70 | % | |||||||||
Non-interest income to total revenues(1) | 14.39 | % | 11.81 | % | 13.01 | % | 14.55 | % | 17.76 | % | |||||||||
Non-interest expense to average assets | 2.42 | % | 2.66 | % | 2.76 | % | 2.60 | % | 2.62 | % | |||||||||
Adjusted non-interest expense to average assets(1)(3) | 2.28 | % | 2.35 | % | 2.71 | % | 2.46 | % | 2.61 | % | |||||||||
Return on average stockholders' equity | 12.56 | % | 12.11 | % | 12.92 | % | 12.50 | % | 11.33 | % | |||||||||
Adjusted return on average stockholders' equity(1)(3) | 13.50 | % | 14.30 | % | 13.34 | % | 13.53 | % | 11.43 | % | |||||||||
Return on average assets | 1.34 | % | 1.30 | % | 1.33 | % | 1.34 | % | 1.25 | % | |||||||||
Adjusted return on average assets(1)(3) | 1.44 | % | 1.53 | % | 1.37 | % | 1.45 | % | 1.26 | % | |||||||||
Pre-tax pre-provision return on average assets(1) | 2.13 | % | 2.16 | % | 2.05 | % | 2.20 | % | 1.97 | % | |||||||||
Adjusted pre-tax pre-provision return on average assets(1)(3) | 2.27 | % | 2.46 | % | 2.10 | % | 2.35 | % | 1.99 | % | |||||||||
Return on average tangible common stockholders' equity(1) | 16.68 | % | 16.15 | % | 17.21 | % | 16.46 | % | 15.15 | % | |||||||||
Adjusted return on average tangible common
| 17.89 | % | 18.95 | % | 17.75 | % | 17.76 | % | 15.28 | % | |||||||||
Non-interest-bearing deposits to total deposits | 26.56 | % | 28.18 | % | 37.55 | % | 26.56 | % | 37.55 | % | |||||||||
Loans and leases held for sale and loans and lease
| 93.39 | % | 95.21 | % | 96.03 | % | 93.39 | % | 96.03 | % | |||||||||
Deposits to total liabilities | 90.94 | % | 86.67 | % | 86.33 | % | 90.94 | % | 86.33 | % | |||||||||
Deposits per branch | $ | 149,521 | $ | 144,869 | $ | 149,872 | $ | 149,521 | $ | 149,872 | |||||||||
Asset Quality Ratios | |||||||||||||||||||
Non-performing loans and leases to total loans and leases
| 0.96 | % | 0.79 | % | 0.66 | % | 0.96 | % | 0.66 | % | |||||||||
ACL to total loans and leases held for investment, net before ACL | 1.52 | % | 1.60 | % | 1.51 | % | 1.52 | % | 1.51 | % | |||||||||
Net charge-offs to average total loans and leases held for
| 0.73 | % | 0.33 | % | 0.24 | % | 0.38 | % | 0.16 | % | |||||||||
Capital Ratios | |||||||||||||||||||
Common equity to total assets | 11.15 | % | 10.29 | % | 10.40 | % | 11.15 | % | 10.40 | % | |||||||||
Tangible common equity to tangible assets(1) | 9.06 | % | 8.18 | % | 8.42 | % | 9.06 | % | 8.42 | % | |||||||||
Leverage ratio | 10.86 | % | 10.75 | % | 10.29 | % | 10.86 | % | 10.29 | % | |||||||||
Common equity tier 1 capital ratio | 10.35 | % | 10.08 | % | 10.20 | % | 10.35 | % | 10.20 | % | |||||||||
Tier 1 capital ratio | 11.39 | % | 11.12 | % | 10.85 | % | 11.39 | % | 10.85 | % | |||||||||
Total capital ratio | 13.38 | % | 13.17 | % | 13.00 | % | 13.38 | % | 13.00 | % | |||||||||
(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 merger-related expenses and impairment charges on assets held for sale and ROU assets |
(4) | Interest income and rates include the effects of a tax equivalent adjustment to adjust tax exempt investment income on tax exempt investment securities to a fully taxable basis, assuming a federal income tax rate of 21%. |
BYLINE BANCORP, INC. AND SUBSIDIARIES | |||||||||||||||||||||||||||||||||||
QUARTER-TO-DATE STATEMENT OF AVERAGE INTEREST-EARNING ASSETS AND AVERAGE INTEREST-BEARING LIABILITIES (unaudited) | |||||||||||||||||||||||||||||||||||
For the Three Months Ended | |||||||||||||||||||||||||||||||||||
December 31, 2023 | September 30, 2023 | December 31, 2022 | |||||||||||||||||||||||||||||||||
(dollars in thousands) | Average
| Interest
| Avg.
| Average
| Interest
| Avg.
| Average
| Interest
| Avg.
| ||||||||||||||||||||||||||
ASSETS | |||||||||||||||||||||||||||||||||||
Cash and cash equivalents | $ | 201,862 | $ | 1,822 | 3.58 | % | $ | 195,019 | $ | 1,724 | 3.51 | % | $ | 89,367 | $ | 234 | 1.04 | % | |||||||||||||||||
Loans and leases(1) | 6,632,827 | 124,042 | 7.42 | % | 6,484,875 | 125,465 | 7.68 | % | 5,389,210 | 85,720 | 6.31 | % | |||||||||||||||||||||||
Taxable securities | 1,389,580 | 8,848 | 2.53 | % | 1,371,979 | 8,465 | 2.45 | % | 1,288,750 | 7,043 | 2.17 | % | |||||||||||||||||||||||
Tax-exempt securities(2) | 163,608 | 1,142 | 2.77 | % | 168,805 | 1,184 | 2.78 | % | 155,562 | 1,021 | 2.60 | % | |||||||||||||||||||||||
Total interest-earning assets | $ | 8,387,877 | $ | 135,854 | 6.43 | % | $ | 8,220,678 | $ | 136,838 | 6.60 | % | $ | 6,922,889 | $ | 94,018 | 5.39 | % | |||||||||||||||||
Allowance for credit losses -
| (106,474 | ) | (108,315 | ) | (81,815 | ) | |||||||||||||||||||||||||||||
All other assets | 506,233 | 521,982 | 424,979 | ||||||||||||||||||||||||||||||||
TOTAL ASSETS | $ | 8,787,636 | $ | 8,634,345 | $ | 7,266,053 | |||||||||||||||||||||||||||||
LIABILITIES AND STOCKHOLDERS'
| |||||||||||||||||||||||||||||||||||
Deposits | |||||||||||||||||||||||||||||||||||
Interest checking | $ | 570,706 | $ | 2,335 | 1.62 | % | $ | 579,917 | $ | 2,208 | 1.51 | % | $ | 596,627 | $ | 1,902 | 1.27 | % | |||||||||||||||||
Money market accounts | 2,159,841 | 18,730 | 3.44 | % | 2,040,476 | 16,676 | 3.24 | % | 1,472,050 | 5,458 | 1.47 | % | |||||||||||||||||||||||
Savings | 560,372 | 208 | 0.15 | % | 594,555 | 228 | 0.15 | % | 647,536 | 243 | 0.15 | % | |||||||||||||||||||||||
Time deposits | 1,861,279 | 21,979 | 4.68 | % | 1,706,531 | 18,051 | 4.20 | % | 788,856 | 3,007 | 1.51 | % | |||||||||||||||||||||||
Total interest-bearing
| 5,152,198 | 43,252 | 3.33 | % | 4,921,479 | 37,163 | 3.00 | % | 3,505,069 | 10,610 | 1.20 | % | |||||||||||||||||||||||
Other borrowings | 395,711 | 3,051 | 3.06 | % | 463,561 | 3,981 | 3.41 | % | 514,518 | 4,598 | 3.55 | % | |||||||||||||||||||||||
Subordinated notes and
| 144,230 | 3,026 | 8.32 | % | 144,171 | 2,994 | 8.24 | % | 110,947 | 1,992 | 7.12 | % | |||||||||||||||||||||||
Total borrowings | 539,941 | 6,077 | 4.47 | % | 607,732 | 6,975 | 4.55 | % | 625,465 | 6,590 | 4.18 | % | |||||||||||||||||||||||
Total interest-bearing liabilities | $ | 5,692,139 | $ | 49,329 | 3.44 | % | $ | 5,529,211 | $ | 44,138 | 3.17 | % | $ | 4,130,534 | $ | 17,200 | 1.65 | % | |||||||||||||||||
Non-interest-bearing
| 1,950,644 | 1,987,996 | 2,235,464 | ||||||||||||||||||||||||||||||||
Other liabilities | 209,656 | 192,860 | 151,763 | ||||||||||||||||||||||||||||||||
Total stockholders' equity | 935,197 | 924,278 | 748,292 | ||||||||||||||||||||||||||||||||
TOTAL LIABILITIES AND
| $ | 8,787,636 | $ | 8,634,345 | $ | 7,266,053 | |||||||||||||||||||||||||||||
Net interest spread(3) | 2.99 | % | 3.43 | % | 3.74 | % | |||||||||||||||||||||||||||||
Net interest income, fully
| $ | 86,525 | $ | 92,700 | $ | 76,818 | |||||||||||||||||||||||||||||
Net interest margin, fully
| 4.09 | % | 4.47 | % | 4.40 | % | |||||||||||||||||||||||||||||
Less: Tax-equivalent adjustment | 240 | 0.01 | % | 248 | 0.01 | % | 214 | 0.01 | % | ||||||||||||||||||||||||||
Net interest income | $ | 86,285 | $ | 92,452 | $ | 76,604 | |||||||||||||||||||||||||||||
Net interest margin(4) | 4.08 | % | 4.46 | % | 4.39 | % | |||||||||||||||||||||||||||||
Net loan accretion impact
| $ | 5,110 | 0.24 | % | $ | 10,276 | 0.50 | % | $ | 369 | 0.02 | % | |||||||||||||||||||||||
(1) | Loan and lease balances are net of deferred origination fees and costs and initial direct costs. Non-accrual loans and leases are included in total loan and lease balances. |
(2) | Interest income and rates include the effects of a tax equivalent adjustment to adjust tax exempt investment income on tax exempt investment securities to a fully taxable basis, assuming a federal income tax rate of 21%. |
(3) | Represents the average rate earned on interest-earning assets minus the average rate paid on interest-bearing liabilities. |
(4) | Represents net interest income (annualized) divided by total average earning assets. |
(5) | Average balances are average daily balances. |
BYLINE BANCORP, INC. AND SUBSIDIARIES | ||||||||||||||||||||||||
YEAR-TO-DATE STATEMENT OF AVERAGE INTEREST-EARNING ASSETS AND AVERAGE INTEREST-BEARING LIABILITIES (unaudited) | ||||||||||||||||||||||||
For the Year Ended | ||||||||||||||||||||||||
December 31, 2023 | December 31, 2022 | |||||||||||||||||||||||
(dollars in thousands) | Average
| Interest
| Average
| Average
| Interest
| Average
| ||||||||||||||||||
ASSETS | ||||||||||||||||||||||||
Cash and cash equivalents | $ | 157,754 | $ | 5,029 | 3.19 | % | $ | 76,978 | $ | 547 | 0.71 | % | ||||||||||||
Loans and leases(1) | 6,038,797 | 440,984 | 7.30 | % | 5,073,288 | 273,412 | 5.39 | % | ||||||||||||||||
Taxable securities | 1,322,379 | 30,068 | 2.27 | % | 1,316,147 | 24,156 | 1.84 | % | ||||||||||||||||
Tax-exempt securities(2) | 158,918 | 4,300 | 2.71 | % | 164,051 | 4,359 | 2.66 | % | ||||||||||||||||
Total interest-earning assets | $ | 7,677,848 | $ | 480,381 | 6.26 | % | $ | 6,630,464 | $ | 302,474 | 4.56 | % | ||||||||||||
Allowance for credit losses - loans and leases | (98,067 | ) | (74,233 | ) | ||||||||||||||||||||
All other assets | 468,550 | 462,548 | ||||||||||||||||||||||
TOTAL ASSETS | $ | 8,048,331 | $ | 7,018,779 | ||||||||||||||||||||
LIABILITIES AND STOCKHOLDERS'
| ||||||||||||||||||||||||
Deposits | ||||||||||||||||||||||||
Interest checking | $ | 574,335 | $ | 9,212 | 1.60 | % | $ | 593,903 | $ | 3,572 | 0.60 | % | ||||||||||||
Money market accounts | 1,802,675 | 53,933 | 2.99 | % | 1,357,371 | 10,484 | 0.77 | % | ||||||||||||||||
Savings | 585,820 | 883 | 0.15 | % | 658,968 | 649 | 0.10 | % | ||||||||||||||||
Time deposits | 1,468,836 | 57,408 | 3.91 | % | 691,650 | 5,091 | 0.74 | % | ||||||||||||||||
Total interest-bearing deposits | 4,431,666 | 121,436 | 2.74 | % | 3,301,892 | 19,796 | 0.60 | % | ||||||||||||||||
Other borrowings | 484,984 | 17,125 | 3.53 | % | 478,374 | 9,308 | 1.95 | % | ||||||||||||||||
Federal funds purchased | 685 | 36 | 5.30 | % | 630 | 14 | 2.32 | % | ||||||||||||||||
Subordinated notes and debentures | 127,825 | 10,260 | 8.03 | % | 110,723 | 7,111 | 6.42 | % | ||||||||||||||||
Total borrowings | 613,494 | 27,421 | 4.47 | % | 589,727 | 16,433 | 2.79 | % | ||||||||||||||||
Total interest-bearing liabilities | $ | 5,045,160 | $ | 148,857 | 2.95 | % | $ | 3,891,619 | $ | 36,229 | 0.93 | % | ||||||||||||
Non-interest-bearing demand deposits | 1,965,663 | 2,236,615 | ||||||||||||||||||||||
Other liabilities | 174,416 | 114,320 | ||||||||||||||||||||||
Total stockholders' equity | 863,092 | 776,225 | ||||||||||||||||||||||
TOTAL LIABILITIES AND
| $ | 8,048,331 | $ | 7,018,779 | ||||||||||||||||||||
Net interest spread(3) | 3.31 | % | 3.63 | % | ||||||||||||||||||||
Net interest income, fully
| $ | 331,524 | $ | 266,245 | ||||||||||||||||||||
Net interest margin, fully
| 4.32 | % | 4.01 | % | ||||||||||||||||||||
Less: Tax-equivalent adjustment | 903 | 0.01 | % | 915 | 0.01 | % | ||||||||||||||||||
Net interest income | $ | 330,621 | $ | 265,330 | ||||||||||||||||||||
Net interest margin(4) | 4.31 | % | 4.00 | % | ||||||||||||||||||||
Net loan accretion impact on margin | $ | 16,726 | 0.22 | % | $ | 4,555 | 0.07 | % | ||||||||||||||||
(1) | Loan and lease balances are net of deferred origination fees and costs and initial direct costs. Non-accrual loans and leases are included in total loan and lease balances. |
(2) | Interest income and rates include the effects of a tax equivalent adjustment to adjust tax exempt investment income on tax exempt investment securities to a fully taxable basis, assuming a federal income tax rate of 21%. |
(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 | ||||||||||||||||||||||||
SELECTED BALANCE SHEET TABLES AND FINANCIAL RATIOS (unaudited) | ||||||||||||||||||||||||
The following table presents our allocation of originated, purchased credit deteriorated (PCD), and acquired non-credit-deteriorated loans and leases at the dates indicated: | ||||||||||||||||||||||||
December 31, 2023 | September 30, 2023 | December 31, 2022 | ||||||||||||||||||||||
(dollars in thousands) | Amount | % of Total | Amount | % of Total | Amount | % of Total | ||||||||||||||||||
Originated loans and leases: | ||||||||||||||||||||||||
Commercial real estate | $ | 1,907,029 | 28.5 | % | $ | 1,837,531 | 27.8 | % | $ | 1,712,152 | 31.6 | % | ||||||||||||
Residential real estate | 465,133 | 7.0 | % | 454,456 | 6.9 | % | 426,226 | 7.9 | % | |||||||||||||||
Construction, land development, and
| 415,162 | 6.2 | % | 406,334 | 6.1 | % | 438,617 | 8.1 | % | |||||||||||||||
Commercial and industrial | 2,311,563 | 34.6 | % | 2,286,058 | 34.6 | % | 2,030,616 | 37.5 | % | |||||||||||||||
Installment and other | 2,919 | 0.0 | % | 2,968 | 0.0 | % | 1,410 | 0.0 | % | |||||||||||||||
Leasing financing receivables | 665,239 | 10.0 | % | 641,032 | 9.7 | % | 521,689 | 9.6 | % | |||||||||||||||
Total originated loans and leases | $ | 5,767,045 | 86.3 | % | $ | 5,628,379 | 85.1 | % | $ | 5,130,710 | 94.7 | % | ||||||||||||
Purchased credit deteriorated loans: | ||||||||||||||||||||||||
Commercial real estate | $ | 137,807 | 2.1 | % | $ | 154,573 | 2.3 | % | $ | 45,143 | 0.8 | % | ||||||||||||
Residential real estate | 42,510 | 0.6 | % | 47,485 | 0.7 | % | 32,228 | 0.6 | % | |||||||||||||||
Construction, land development, and
| 25,331 | 0.4 | % | 29,587 | 0.5 | % | 372 | 0.0 | % | |||||||||||||||
Commercial and industrial | 19,460 | 0.3 | % | 21,014 | 0.3 | % | 2,192 | 0.0 | % | |||||||||||||||
Installment and other | 125 | 0.0 | % | 125 | 0.0 | % | 140 | 0.0 | % | |||||||||||||||
Total purchased credit deteriorated loans | $ | 225,233 | 3.4 | % | $ | 252,784 | 3.8 | % | $ | 80,075 | 1.4 | % | ||||||||||||
Acquired non-credit-deteriorated loans
| ||||||||||||||||||||||||
Commercial real estate | $ | 275,476 | 4.1 | % | $ | 296,656 | 4.5 | % | $ | 152,193 | 2.8 | % | ||||||||||||
Residential real estate | 211,887 | 3.2 | % | 220,091 | 3.4 | % | 31,508 | 0.6 | % | |||||||||||||||
Construction, land development, and
| 86,344 | 1.3 | % | 87,087 | 1.3 | % | - | 0.0 | % | |||||||||||||||
Commercial and industrial | 117,538 | 1.7 | % | 127,253 | 1.9 | % | 24,266 | 0.5 | % | |||||||||||||||
Installment and other | 156 | 0.0 | % | 153 | 0.0 | % | 209 | 0.0 | % | |||||||||||||||
Leasing financing receivables | 627 | 0.0 | % | 900 | 0.0 | % | 2,297 | 0.0 | % | |||||||||||||||
Total acquired non-credit-deteriorated
| $ | 692,028 | 10.3 | % | $ | 732,140 | 11.1 | % | $ | 210,473 | 3.9 | % | ||||||||||||
Total loans and leases | $ | 6,684,306 | 100.0 | % | $ | 6,613,303 | 100.0 | % | $ | 5,421,258 | 100.0 | % | ||||||||||||
Allowance for credit losses - loans and leases | (101,686 | ) | (105,696 | ) | (81,924 | ) | ||||||||||||||||||
Total loans and leases, net of allowance for
| $ | 6,582,620 | $ | 6,507,607 | $ | 5,339,334 | ||||||||||||||||||
The following table presents the balance and activity within the allowance for credit losses - loans and lease for the periods indicated: | ||||||||||||||||||||
Three Months Ended | Year Ended | |||||||||||||||||||
December 31, | September 30, | December 31, | December 31, | December 31, | ||||||||||||||||
(dollars in thousands) | 2023 | 2023 | 2022 | 2023 | 2022 | |||||||||||||||
ACL - loans and leases, beginning of period | $ | 105,696 | $ | 92,665 | $ | 79,704 | $ | 81,924 | $ | 55,012 | ||||||||||
Adjustment for acquired PCD loans | - | 10,596 | - | 10,596 | - | |||||||||||||||
Adjustment for CECL adoption | - | - | - | - | 12,168 | |||||||||||||||
Provision for credit losses - loans and leases | 8,176 | 7,865 | 5,399 | 32,220 | 22,674 | |||||||||||||||
Net charge-offs - loans and leases | (12,186 | ) | (5,430 | ) | (3,179 | ) | (23,054 | ) | (7,930 | ) | ||||||||||
ACL - loans and leases, end of period | $ | 101,686 | $ | 105,696 | $ | 81,924 | $ | 101,686 | $ | 81,924 | ||||||||||
Net charge-offs - loans and leases to average total
| 0.73 | % | 0.33 | % | 0.24 | % | 0.38 | % | 0.16 | % | ||||||||||
Provision for credit losses - loans and leases
| 0.67 | x | 1.45 | x | 1.70 | x | 1.40 | x | 2.86 | x | ||||||||||
BYLINE BANCORP, INC. AND SUBSIDIARIES | ||||||||||||||||||||
SELECTED BALANCE SHEET TABLES AND FINANCIAL RATIOS (unaudited) | ||||||||||||||||||||
The following table presents the amounts of non-performing loans and leases and other real estate owned at the date indicated: | ||||||||||||||||||||
December 31, 2023 | ||||||||||||||||||||
Change from | ||||||||||||||||||||
(dollars in thousands) | December 31,
| September 30,
| December 31,
| September 30,
| December 31,
| |||||||||||||||
Non-performing assets: | ||||||||||||||||||||
Non-accrual loans and leases | $ | 64,107 | $ | 52,070 | $ | 36,027 | 23.1 | % | 77.9 | % | ||||||||||
Past due loans and leases 90 days or more
| - | - | - | -% | -% | |||||||||||||||
Total non-performing loans and leases | $ | 64,107 | $ | 52,070 | $ | 36,027 | 23.1 | % | 77.9 | % | ||||||||||
Other real estate owned | 1,200 | 1,671 | 4,717 | (28.2 | )% | (74.6 | )% | |||||||||||||
Total non-performing assets | $ | 65,307 | $ | 53,741 | $ | 40,744 | 21.5 | % | 60.3 | % | ||||||||||
Total non-performing loans and leases as a
| 0.96 | % | 0.79 | % | 0.66 | % | ||||||||||||||
Total non-performing assets as a percentage
| 0.74 | % | 0.60 | % | 0.55 | % | ||||||||||||||
Allowance for credit losses - loans and lease
| 158.62 | % | 202.99 | % | 227.40 | % | ||||||||||||||
Non-performing assets guaranteed by
| ||||||||||||||||||||
Non-accrual loans guaranteed | $ | 4,154 | $ | 3,588 | $ | 2,225 | 15.8 | % | 86.7 | % | ||||||||||
Past due loans 90 days or more and still
| - | - | - | -% | -% | |||||||||||||||
Total non-performing loans guaranteed | $ | 4,154 | $ | 3,588 | $ | 2,225 | 15.8 | % | 86.7 | % | ||||||||||
Total non-performing loans and leases
| 0.90 | % | 0.73 | % | 0.62 | % | ||||||||||||||
Total non-performing assets not guaranteed
| 0.69 | % | 0.56 | % | 0.52 | % | ||||||||||||||
The following table presents the composition of deposits at the dates indicated:
December 31, 2023 | |||||||||||||||||||
Change from | |||||||||||||||||||
(dollars in thousands) | December 31,
| September 30,
| December 31,
| September 30,
| December 31,
| ||||||||||||||
Non-interest-bearing demand deposits | $ | 1,905,876 | $ | 1,959,855 | $ | 2,138,645 | (2.8 | )% | (10.9 | )% | |||||||||
Interest-bearing checking accounts | 577,609 | 592,771 | 592,098 | (2.6 | )% | (2.4 | )% | ||||||||||||
Money market demand accounts | 2,266,030 |
| 2,062,252 | 1,415,653 | 9.9 | % | 60.1 | % | |||||||||||
Other savings | 542,532 | 581,073 | 625,798 | (6.6 | )% | (13.3 | )% | ||||||||||||
Time deposits (below $250,000) | 1,520,082 | 1,446,485 | 762,250 | 5.0 | % | 99.4 | % | ||||||||||||
Time deposits ($250,000 and above) | 364,870 | 311,254 | 160,677 | 17.4 | % | 127.1 | % | ||||||||||||
Total deposits | $ | 7,176,999 | $ | 6,953,690 | $ | 5,695,121 | 3.2 | % | 26.0 | % | |||||||||
BYLINE BANCORP, INC. AND SUBSIDIARIES | ||||||||||||||||||||
RECONCILIATION OF NON-GAAP FINANCIAL MEASURES (unaudited) |
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, tax-equivalent net interest margin, total revenue, 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 below 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.
As of or For the Three Months Ended | As of or For the Year Ended | |||||||||||||||||||
December 31, | September 30, | December 31, | December 31, | December 31, | ||||||||||||||||
(dollars in thousands, except per share data) | 2023 | 2023 | 2022 | 2023 | 2022 | |||||||||||||||
Net income and earnings per share excluding significant items: | ||||||||||||||||||||
Reported Net Income | $ | 29,604 | $ | 28,222 | $ | 24,367 | $ | 107,878 | $ | 87,954 | ||||||||||
Significant items: | ||||||||||||||||||||
Impairment charges on assets held for sale and ROU assets | 1,981 | 394 | 372 | 2,395 | 372 | |||||||||||||||
Merger-related expenses | 1,035 | 6,307 | 538 | 9,222 | 538 | |||||||||||||||
Tax benefit | (793 | ) | (1,617 | ) | (118 | ) | (2,696 | ) | (118 | ) | ||||||||||
Adjusted Net Income | $ | 31,827 | $ | 33,306 | $ | 25,159 | $ | 116,799 | $ | 88,746 | ||||||||||
Reported Diluted Earnings per Share | $ | 0.68 | $ | 0.65 | $ | 0.65 | $ | 2.67 | $ | 2.34 | ||||||||||
Significant items: | ||||||||||||||||||||
Impairment charges on assets held for sale and ROU assets | 0.05 | 0.01 | 0.01 | 0.06 | 0.01 | |||||||||||||||
Merger-related expenses | 0.02 | 0.15 | 0.01 | 0.23 | 0.01 | |||||||||||||||
Tax benefit | (0.02 | ) | (0.04 | ) | - | (0.07 | ) | - | ||||||||||||
Adjusted Diluted Earnings per Share | $ | 0.73 | $ | 0.77 | $ | 0.67 | $ | 2.89 | $ | 2.36 | ||||||||||
BYLINE BANCORP, INC. AND SUBSIDIARIES | ||||||||||||||||||||
RECONCILIATION OF NON-GAAP FINANCIAL MEASURES (continued) (unaudited) | ||||||||||||||||||||
As of or For the Three Months Ended | As of or For the Year Ended | |||||||||||||||||||
(dollars in thousands, except per share data, | December 31, | September 30, | December 31, | December 31, | December 31, | |||||||||||||||
ratios annualized, where applicable) | 2023 | 2023 | 2022 | 2023 | 2022 | |||||||||||||||
Adjusted non-interest expense: | ||||||||||||||||||||
Non-interest expense | $ | 53,584 | $ | 57,891 | $ | 50,500 | $ | 209,603 | $ | 184,082 | ||||||||||
Less: Significant items | ||||||||||||||||||||
Impairment charges on assets held for sale and ROU assets | 1,981 | 394 | 372 | 2,395 | 372 | |||||||||||||||
Merger-related expenses | 1,035 | 6,307 | 538 | 9,222 | 538 | |||||||||||||||
Adjusted non-interest expense | $ | 50,568 | $ | 51,190 | $ | 49,590 | $ | 197,986 | $ | 183,172 | ||||||||||
Adjusted non-interest expense excluding
| ||||||||||||||||||||
Adjusted non-interest expense | $ | 50,568 | $ | 51,190 | $ | 49,590 | $ | 197,986 | $ | 183,172 | ||||||||||
Less: Amortization of intangible assets | 1,550 | 1,551 | 1,596 | 6,011 | 6,671 | |||||||||||||||
Adjusted non-interest expense excluding
| $ | 49,018 | $ | 49,639 | $ | 47,994 | $ | 191,975 | $ | 176,501 | ||||||||||
Pre-tax pre-provision net income: | ||||||||||||||||||||
Pre-tax income | $ | 39,969 | $ | 38,134 | $ | 31,733 | $ | 145,680 | $ | 114,683 | ||||||||||
Add: Provision for credit losses | 7,235 | 8,803 | 5,826 | 31,653 | 23,879 | |||||||||||||||
Pre-tax pre-provision net income | $ | 47,204 | $ | 46,937 | $ | 37,559 | $ | 177,333 | $ | 138,562 | ||||||||||
Adjusted pre-tax pre-provision net income: | ||||||||||||||||||||
Pre-tax pre-provision net income | $ | 47,204 | $ | 46,937 | $ | 37,559 | $ | 177,333 | $ | 138,562 | ||||||||||
Add: Impairment charges on assets held for sale
| 1,981 | 394 | 372 | 2,395 | 372 | |||||||||||||||
Add: Merger-related expenses | 1,035 | 6,307 | 538 | 9,222 | 538 | |||||||||||||||
Adjusted pre-tax pre-provision net income | $ | 50,220 | $ | 53,638 | $ | 38,469 | $ | 188,950 | $ | 139,472 | ||||||||||
Tax equivalent net interest income: | ||||||||||||||||||||
Net interest income | $ | 86,285 | $ | 92,452 | $ | 76,604 | $ | 330,621 | $ | 265,330 | ||||||||||
Add: Tax-equivalent adjustment | 240 | 248 | 214 | 903 | 915 | |||||||||||||||
Net interest income, fully taxable equivalent | $ | 86,525 | $ | 92,700 | $ | 76,818 | $ | 331,524 | $ | 266,245 | ||||||||||
Total revenue: | ||||||||||||||||||||
Net interest income | $ | 86,285 | $ | 92,452 | $ | 76,604 | $ | 330,621 | $ | 265,330 | ||||||||||
Add: Non-interest income | 14,503 | 12,376 | 11,455 | 56,315 | $ | 57,314 | ||||||||||||||
Total revenue | $ | 100,788 | $ | 104,828 | $ | 88,059 | $ | 386,936 | $ | 322,644 | ||||||||||
Tangible common stockholders' equity: | ||||||||||||||||||||
Total stockholders' equity | $ | 990,151 | $ | 919,945 | $ | 765,816 | $ | 990,151 | $ | 765,816 | ||||||||||
Less: Goodwill and other intangibles | 203,478 | 205,028 | 158,887 | 203,478 | 158,887 | |||||||||||||||
Tangible common stockholders' equity | $ | 786,673 | $ | 714,917 | $ | 606,929 | $ | 786,673 | $ | 606,929 | ||||||||||
Tangible assets: | ||||||||||||||||||||
Total assets | $ | 8,881,967 | $ | 8,943,368 | $ | 7,362,941 | $ | 8,881,967 | $ | 7,362,941 | ||||||||||
Less: Goodwill and other intangibles | 203,478 | 205,028 | 158,887 | 203,478 | 158,887 | |||||||||||||||
Tangible assets | $ | 8,678,489 | $ | 8,738,340 | $ | 7,204,054 | $ | 8,678,489 | $ | 7,204,054 | ||||||||||
Average tangible common stockholders' equity: | ||||||||||||||||||||
Average total stockholders' equity | $ | 935,197 | $ | 924,278 | $ | 748,292 | $ | 863,092 | $ | 776,225 | ||||||||||
Less: Average preferred stock | - | - | - | - | 2,459 | |||||||||||||||
Less: Average goodwill and other intangibles | 204,191 | 202,978 | 159,680 | 180,717 | 162,203 | |||||||||||||||
Average tangible common stockholders' equity | $ | 731,006 | $ | 721,300 | $ | 588,612 | $ | 682,375 | $ | 611,563 | ||||||||||
Average tangible assets: | ||||||||||||||||||||
Average total assets | $ | 8,787,636 | $ | 8,634,345 | $ | 7,266,053 | $ | 8,048,331 | $ | 7,018,779 | ||||||||||
Less: Average goodwill and other intangibles | 204,191 | 202,978 | 159,680 | 180,717 | 162,203 | |||||||||||||||
Average tangible assets | $ | 8,583,445 | $ | 8,431,367 | $ | 7,106,373 | $ | 7,867,614 | $ | 6,856,576 | ||||||||||
Tangible net income available to common stockholders: | ||||||||||||||||||||
Net income available to common stockholders | $ | 29,604 | $ | 28,222 | $ | 24,367 | $ | 107,878 | $ | 87,758 | ||||||||||
Add: After-tax intangible asset amortization | 1,138 | 1,137 | 1,170 | 4,408 | 4,890 | |||||||||||||||
Tangible net income available to common stockholders | $ | 30,742 | $ | 29,359 | $ | 25,537 | $ | 112,286 | $ | 92,648 | ||||||||||
Adjusted tangible net income available to common
| ||||||||||||||||||||
Tangible net income available to common stockholders | $ | 30,742 | $ | 29,359 | $ | 25,537 | $ | 112,286 | $ | 92,648 | ||||||||||
Impairment charges on assets held for sale and ROU assets | 1,981 | 394 | 372 | 2,395 | 372 | |||||||||||||||
Merger-related expenses | 1,035 | 6,307 | 538 | 9,222 | 538 | |||||||||||||||
Tax benefit on significant items | (793 | ) | (1,617 | ) | (118 | ) | (2,696 | ) | (118 | ) | ||||||||||
Adjusted tangible net income available to
| $ | 32,965 | $ | 34,443 | $ | 26,329 | $ | 121,207 | $ | 93,440 | ||||||||||
BYLINE BANCORP, INC. AND SUBSIDIARIES | ||||||||||||||||||||
RECONCILIATION OF NON-GAAP FINANCIAL MEASURES (continued) (unaudited) | ||||||||||||||||||||
As of or For the Three Months Ended | As of or For the Year Ended | |||||||||||||||||||
(dollars in thousands, except share and per share | December 31, | September 30, | December 31, | December 31, | December 31, | |||||||||||||||
data, ratios annualized, where applicable) | 2023 | 2023 | 2022 | 2023 | 2022 | |||||||||||||||
Pre-tax pre-provision return on average assets: | ||||||||||||||||||||
Pre-tax pre-provision net income | $ | 47,204 | $ | 46,937 | $ | 37,559 | $ | 177,333 | $ | 138,562 | ||||||||||
Average total assets | 8,787,636 | 8,634,345 | 7,266,053 | 8,048,331 | 7,018,779 | |||||||||||||||
Pre-tax pre-provision return on average assets | 2.13 | % | 2.16 | % | 2.05 | % | 2.20 | % | 1.97 | % | ||||||||||
Adjusted pre-tax pre-provision return on average assets: | ||||||||||||||||||||
Adjusted pre-tax pre-provision net income | $ | 50,220 | $ | 53,638 | $ | 38,469 | $ | 188,950 | $ | 139,472 | ||||||||||
Average total assets | 8,787,636 | 8,634,345 | 7,266,053 | 8,048,331 | 7,018,779 | |||||||||||||||
Adjusted pre-tax pre-provision return on average assets | 2.27 | % | 2.46 | % | 2.10 | % | 2.35 | % | 1.99 | % | ||||||||||
Net interest margin, fully taxable equivalent: | ||||||||||||||||||||
Net interest income, fully taxable equivalent | $ | 86,525 | $ | 92,700 | $ | 76,818 | $ | 331,524 | $ | 266,245 | ||||||||||
Total average interest-earning assets | 8,387,877 | 8,220,678 | 6,922,889 | 7,677,848 | 6,630,464 | |||||||||||||||
Net interest margin, fully taxable equivalent | 4.09 | % | 4.47 | % | 4.40 | % | 4.32 | % | 4.01 | % | ||||||||||
Non-interest income to total revenues: | ||||||||||||||||||||
Non-interest income | $ | 14,503 | $ | 12,376 | $ | 11,455 | $ | 56,315 | $ | 57,314 | ||||||||||
Total revenues | 100,788 | 104,828 | 88,059 | 386,936 | 322,644 | |||||||||||||||
Non-interest income to total revenues | 14.39 | % | 11.81 | % | 13.01 | % | 14.55 | % | 17.76 | % | ||||||||||
Adjusted non-interest expense to average assets: | ||||||||||||||||||||
Adjusted non-interest expense | $ | 50,568 | $ | 51,190 | $ | 49,590 | $ | 197,986 | $ | 183,172 | ||||||||||
Average total assets | 8,787,636 | 8,634,345 | 7,266,053 | 8,048,331 | 7,018,779 | |||||||||||||||
Adjusted non-interest expense to average assets | 2.28 | % | 2.35 | % | 2.71 | % | 2.46 | % | 2.61 | % | ||||||||||
Adjusted efficiency ratio: | ||||||||||||||||||||
Adjusted non-interest expense excluding amortization of
| $ | 49,018 | $ | 49,639 | $ | 47,994 | $ | 191,975 | $ | 176,501 | ||||||||||
Total revenues | 100,788 | 104,828 | 88,059 | 386,936 | 322,644 | |||||||||||||||
Adjusted efficiency ratio | 48.64 | % | 47.35 | % | 54.50 | % | 49.61 | % | 54.70 | % | ||||||||||
Adjusted return on average assets: | ||||||||||||||||||||
Adjusted net income | $ | 31,827 | $ | 33,306 | $ | 25,159 | $ | 116,799 | $ | 88,746 | ||||||||||
Average total assets | 8,787,636 | 8,634,345 | 7,266,053 | 8,048,331 | 7,018,779 | |||||||||||||||
Adjusted return on average assets | 1.44 | % | 1.53 | % | 1.37 | % | 1.45 | % | 1.26 | % | ||||||||||
Adjusted return on average stockholders' equity: | ||||||||||||||||||||
Adjusted net income | $ | 31,827 | $ | 33,306 | $ | 25,159 | $ | 116,799 | $ | 88,746 | ||||||||||
Average stockholders' equity | 935,197 | 924,278 | 748,292 | 863,092 | 776,225 | |||||||||||||||
Adjusted return on average stockholders' equity | 13.50 | % | 14.30 | % | 13.34 | % | 13.53 | % | 11.43 | % | ||||||||||
Tangible common equity to tangible assets: | ||||||||||||||||||||
Tangible common equity | $ | 786,673 | $ | 714,917 | $ | 606,929 | $ | 786,673 | $ | 606,929 | ||||||||||
Tangible assets | 8,678,489 | 8,738,340 | 7,204,054 | 8,678,489 | 7,204,054 | |||||||||||||||
Tangible common equity to tangible assets | 9.06 | % | 8.18 | % | 8.42 | % | 9.06 | % | 8.42 | % | ||||||||||
Return on average tangible common stockholders' equity: | ||||||||||||||||||||
Tangible net income available to common stockholders | $ | 30,742 | $ | 29,359 | $ | 25,537 | $ | 112,286 | $ | 92,648 | ||||||||||
Average tangible common stockholders' equity | 731,006 | 721,300 | 588,612 | 682,375 | 611,563 | |||||||||||||||
Return on average tangible common stockholders' equity | 16.68 | % | 16.15 | % | 17.21 | % | 16.46 | % | 15.15 | % | ||||||||||
Adjusted return on average tangible common
| ||||||||||||||||||||
Adjusted tangible net income available to common
| $ | 32,965 | $ | 34,443 | $ | 26,329 | $ | 121,207 | $ | 93,440 | ||||||||||
Average tangible common stockholders' equity | 731,006 | 721,300 | 588,612 | 682,375 | 611,563 | |||||||||||||||
Adjusted return on average tangible common
| 17.89 | % | 18.95 | % | 17.75 | % | 17.76 | % | 15.28 | % | ||||||||||
Tangible book value per share: | ||||||||||||||||||||
Tangible common equity | $ | 786,673 | $ | 714,917 | $ | 606,929 | $ | 786,673 | $ | 606,929 | ||||||||||
Common shares outstanding | 43,764,056 | 43,719,203 | 37,492,775 | 43,764,056 | 37,492,775 | |||||||||||||||
Tangible book value per share | $ | 17.98 | $ | 16.35 | $ | 16.19 | $ | 17.98 | $ | 16.19 | ||||||||||
Contacts
Investors/Media:
Brooks Rennie
Investor Relations Director
312-660-5805
brennie@bylinebank.com
