Byline Bancorp, Inc. Reports Second Quarter 2022 Financial Results

Select Second Quarter 2022 Financial Highlights

Net income of $20.3 million, or $0.54 per diluted share
Net interest income of $61.6 million and $14.2 million of non-interest income
Total revenue1 of $75.8 million
Net interest margin of 3.76%
Return on average assets of 1.17%
Efficiency ratio of 55.29%
Non-interest bearing deposits totaled 40.5% of total deposits
Originated loans and leases increased $425.1 million, loan and lease production, net of loan sales of $443.0 million
Common Equity Tier 1 to risk weighted assets of 10.26%

Chicago, IL, July 28, 2022 - Byline Bancorp, Inc. ("Byline", the "Company", "we", "our", or "us")(NYSE: BY), the parent company of Byline Bank (the "Bank"), today reported net income of $20.3 million, or $0.54 per diluted share, for the second quarter of 2022, compared with net income of $22.3 million, or $0.58 per diluted share, for the first quarter of 2022, and net income of $28.5 million, or $0.73 per diluted share, for the second quarter 2021.

Roberto R. Herencia, Executive Chairman and Chief Executive Officer of Byline Bancorp, Inc., commented, "We are pleased with our second quarter results as our team continued to move with agility and execute well in a highly dynamic environment. We continued to experience healthy growth in our loan and lease portfolio as we eclipsed $5.0 billion in loans and leases and surpassed $7.0 billion total assets. I want to thank our employees for their hard work and unwavering dedication to our business."

Alberto J. Paracchini, President of Byline Bancorp, Inc. added, "Our second quarter results reflect the strength and durability of our business model as we posted strong growth in net interest income. Loan and lease growth exceeded our expectations with annualized growth of 34.2%, excluding PPP loans. Credit quality remains solid, and we continue to manage our operating expenses prudently. As we head into the second half of the year we face an uncertain economic environment. However, we believe we are well positioned for the range of possible outcomes given our strong liquidity and capital ratios, our diversified business mix, and our well-established risk management track record."

Board Declares Cash Dividend of $0.09 per Share

On July 26, 2022, the Company's Board of Directors declared a cash dividend of $0.09 per share, payable on August 23, 2022, to stockholders of record of the Company's common stock as of August 9, 2022.

Company Completes Branch Consolidations

The Company continued to execute on its previously announced strategic efforts to optimize its branch network by consolidating six branches during the second quarter 2022, which resulted in a one-time charge of $267,000 during the quarter. These consolidations conclude the Company's branch consolidation and real estate reduction strategic efforts announced on December 10, 2021.

(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.

Byline Bancorp, Inc.

Page 2 of 17

STATEMENTS OF OPERATIONS

Net Interest Income

The following table presents the average interest-earning assets and average interest-bearing liabilities for the periods indicated. Net interest income and margin are adjusted to reflect tax-exempt interest income on a tax-equivalent basis using tax rates effective as of the end of the period:

For the Three Months Ended

June 30, 2022

March 31, 2022

June 30, 2021

(dollars in thousands)

Average
Balance(5)

Interest
Inc / Exp

Avg.
Yield /
Rate

Average
Balance(5)

Interest
Inc / Exp

Avg.
Yield /
Rate

Average
Balance(5)

Interest
Inc / Exp

Avg.
Yield /
Rate

ASSETS

Cash and cash equivalents

$

66,034

$

74

0.45

%

$

74,822

$

29

0.16

%

$

75,382

$

28

0.15

%

Loans and leases(1)

5,009,077

59,674

4.78

%

4,670,070

55,426

4.81

%

4,491,197

54,324

4.85

%

Taxable securities

1,330,200

5,904

1.78

%

1,339,345

5,475

1.66

%

1,477,070

5,947

1.62

%

Tax-exempt securities(2)

168,567

1,131

2.69

%

169,652

1,124

2.69

%

187,967

1,281

2.73

%

Total interest-earning assets

$

6,573,878

$

66,783

4.07

%

$

6,253,889

$

62,054

4.02

%

$

6,231,616

$

61,580

3.96

%

Allowance for loan
and lease losses

(59,883

)

(55,885

)

(65,848

)

All other assets

461,730

507,982

554,724

TOTAL ASSETS

$

6,975,725

$

6,705,986

$

6,720,492

LIABILITIES AND STOCKHOLDERS'
EQUITY

Deposits

Interest checking

$

615,831

$

415

0.27

%

$

579,297

$

178

0.12

%

$

626,886

$

220

0.14

%

Money market accounts

1,307,320

1,194

0.37

%

1,255,431

474

0.15

%

1,052,223

279

0.11

%

Savings

664,954

83

0.05

%

649,269

76

0.05

%

607,035

72

0.05

%

Time deposits

627,199

436

0.28

%

662,080

359

0.22

%

717,795

487

0.27

%

Total interest-bearing
deposits

3,215,304

2,128

0.27

%

3,146,077

1,087

0.14

%

3,003,939

1,058

0.14

%

Other borrowings

497,082

1,083

0.87

%

290,545

395

0.55

%

642,586

482

0.30

%

Federal funds purchased

2,527

14

2.32

%

-

-

0.00

%

-

-

0.00

%

Subordinated notes and
debentures

110,649

1,694

6.14

%

110,490

1,600

5.87

%

110,030

1,597

5.82

%

Total borrowings

610,258

2,791

1.83

%

401,035

1,995

2.02

%

752,616

2,079

1.11

%

Total interest-bearing liabilities

$

3,825,562

$

4,919

0.52

%

$

3,547,112

$

3,082

0.35

%

$

3,756,555

$

3,137

0.33

%

Non-interest-bearing
demand deposits

2,265,426

2,248,035

2,085,358

Other liabilities

104,085

78,678

68,089

Total stockholders' equity

780,652

832,161

810,490

TOTAL LIABILITIES AND
STOCKHOLDERS' EQUITY

$

6,975,725

$

6,705,986

$

6,720,492

Net interest spread(3)

3.55

%

3.67

%

3.63

%

Net interest income, fully
taxable equivalent

$

61,864

$

58,972

$

58,443

Net interest margin, fully
taxable equivalent(2)(4)

3.77

%

3.82

%

3.76

%

Tax-equivalent adjustment

(237

)

0.01

%

(236

)

0.01

%

(269

)

0.02

%

Net interest income

$

61,627

$

58,736

$

58,174

Net interest margin(4)

3.76

%

3.81

%

3.74

%

Net loan accretion impact
on margin

$

1,383

0.08

%

$

1,476

0.10

%

$

1,395

0.09

%

(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 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.

Page 3 of 17

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

June 30, 2022

Three Months Ended

Change from

June 30,

March 31,

June 30,

March 31,

June 30,

(dollars in thousands)

2022

2022

2021

2022

2021

INTEREST AND DIVIDEND INCOME

Interest and fees on loans and leases

$

59,674

$

55,426

$

54,324

7.7

%

9.8

%

Interest on securities

6,264

6,155

6,359

1.8

%

(1.5

)%

Other interest and dividend income

608

237

628

157.2

%

(3.3

)%

Total interest and dividend income

66,546

61,818

61,311

7.6

%

8.5

%

INTEREST EXPENSE

Deposits

2,128

1,087

1,058

95.8

%

101.2

%

Other borrowings

1,097

395

482

178.0

%

128.0

%

Subordinated notes and debentures

1,694

1,600

1,597

5.9

%

6.0

%

Total interest expense

4,919

3,082

3,137

59.6

%

56.8

%

Net interest income

$

61,627

$

58,736

$

58,174

4.9

%

5.9

%

Net interest income for the second quarter of 2022 was $61.6 million, an increase of $2.9 million, or 4.9%, from the first quarter of 2022.

The increase in net interest income was primarily due to:

An increase of $4.2 million in interest income on loans and leases, primarily due to loan and lease growth.

Partially offset by:

An increase of $1.0 million in interest expense on deposits due to the rising interest rate environment.

Tax-equivalent net interest margin for the second quarter of 2022 was 3.77%, a decrease of five basis points compared to the first quarter of 2022. Total net accretion income on acquired loans contributed eight basis points to the net interest margin for the second quarter of 2022 compared to 10 basis points for the first quarter of 2022, a decrease of two basis points. PPP loan interest income and net fee income combined, contributed $746,000 to net interest income for the second quarter of 2022 compared to $2.7 million for the first quarter of 2022, a decrease of $1.9 million.

The average cost of total deposits was 0.16% for the second quarter of 2022, an increase of eight basis points compared to the first quarter of 2022. Average non-interest-bearing demand deposits were 41.3% of average total deposits for the second quarter of 2022 compared to 41.7% during the first quarter of 2022.

Provision for Loan and Lease Losses

The provision for loan and lease losses was $5.9 million for the second quarter of 2022, an increase of $913,000 compared to $5.0 million for the first quarter of 2022. The increase in provision during the second quarter of 2022 was mainly driven by changes to qualitative factors surrounding macroeconomic environment and rising interest rates, as well as growth in the loan and lease portfolio.

Byline Bancorp, Inc.

Page 4 of 17

Non-interest Income

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

June 30, 2022

Three Months Ended

Change from

June 30,

March 31,

June 30,

March 31,

June 30,

(dollars in thousands)

2022

2022

2021

2022

2021

NON-INTEREST INCOME

Fees and service charges on deposits

$

2,059

$

1,884

$

1,768

9.2

%

16.4

%

Loan servicing revenue

3,384

3,380

3,188

0.1

%

6.1

%

Loan servicing asset revaluation

(4,636

)

(1,231

)

7

NM

NM

ATM and interchange fees

1,131

1,049

1,044

7.9

%

8.4

%

Net realized gains (losses) on securities
available-for-sale

52

-

(136

)

NM

NM

Change in fair value of equity securities, net

(697

)

(35

)

517

NM

NM

Net gains on sales of loans

9,983

10,827

12,270

(7.8

)%

(18.6

)%

Wealth management and trust income

900

1,048

722

(14.2

)%

24.5

%

Other non-interest income

1,985

2,504

1,622

(20.7

)%

22.4

%

Total non-interest income

$

14,161

$

19,426

$

21,002

(27.1

)%

(32.6

)%

Non-interest income for the second quarter of 2022 was $14.2 million, a decrease of $5.3 million or 27.1%, compared to $19.4 million for the first quarter of 2022

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

An increase of $3.4 million in loan servicing asset revaluation charges due to higher downward asset revaluation adjustment resulting from unfavorable fair value adjustments due to increased discount rates; and
A decrease of $844,000 in net gains on sales of loans due to lower premiums on government guaranteed loan sales.

During the second quarter of 2022, we sold $118.5 million of U.S. government guaranteed loans compared to $102.3 million during the first quarter of 2022.

Non-interest Expense

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

June 30, 2022

Three Months Ended

Change from

June 30,

March 31,

June 30,

March 31,

June 30,

(dollars in thousands)

2022

2022

2021

2022

2021

NON-INTEREST EXPENSE

Salaries and employee benefits

$

27,697

$

28,959

$

24,588

(4.4

)%

12.6

%

Occupancy and equipment expense, net

4,409

5,128

4,856

(14.0

)%

(9.2

)%

Impairment charge on assets held for sale

-

-

1,943

NM

NM

Loan and lease related expenses

942

(891

)

1,503

NM

(37.4

)%

Legal, audit and other professional fees

1,820

2,600

2,898

(30.0

)%

(37.2

)%

Data processing

3,396

3,186

2,847

6.6

%

19.3

%

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

158

54

389

189.5

%

(59.4

)%

Other intangible assets amortization expense

1,868

1,596

1,848

17.0

%

1.1

%

Other non-interest expense

3,483

3,923

2,109

(11.1

)%

65.1

%

Total non-interest expense

$

43,773

$

44,555

$

42,981

(1.8

)%

1.8

%

Non-interest expense for the second quarter of 2022 was $43.8 million, a decrease of $782,000, or 1.8%, from $44.6 million for the first quarter of 2022.

Byline Bancorp, Inc.

Page 5 of 17

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

A decrease of $1.3 million in salaries and employee benefits primarily due to lower payroll taxes and higher deferred salary costs related to loan and lease originations; and
A decrease of $780,000 in legal, audit and other professional fees due to higher reimbursements of legal fees; and
A decrease of $719,000 in occupancy and equipment expense due to the net effects of our branch consolidation and real estate strategy.

Partially offset by:

An increase of $1.8 million in loan and lease related expenses due to second quarter loan and lease growth and recapture of government guaranteed loan expenses during the first quarter of 2022.

Our efficiency ratio was 55.29% for the second quarter of 2022 compared to 54.96% for the first quarter of 2022.

INCOME TAXES

We recorded income tax expense of $5.8 million during the second quarter of 2022, compared to $6.3 million during the first quarter of 2022. The effective tax rate was 22.3% and 22.0% for the second quarter of 2022 and first quarter of 2022, respectively. The effective tax rate is a result of tax benefits related to share-based compensation.

STATEMENTS OF FINANCIAL CONDITION

Total assets were $7.1 billion at June 30, 2022, an increase of $297.1 million compared to $6.8 billion at March 31, 2022.

The current quarter increase was primarily due to:

An increase in net loans and leases of $376.0 million primarily due to growth in originated commercial real estate and commercial and industrial loans.

Partially offset by:

A decrease in securities available-for-sale of $96.2 million primarily due to changes in market values.

Byline Bancorp, Inc.

Page 6 of 17

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

June 30, 2022

March 31, 2022

June 30, 2021

(dollars in thousands)

Amount

% of Total

Amount

% of Total

Amount

% of Total

Originated loans and leases

Commercial real estate

$

1,672,438

32.4

%

$

1,527,920

31.9

%

$

1,156,824

25.9

%

Residential real estate

401,095

7.7

%

399,638

8.3

%

389,758

8.7

%

Construction, land development, and
other land

434,132

8.4

%

351,519

7.3

%

271,710

6.1

%

Commercial and industrial

1,861,582

36.0

%

1,698,025

35.5

%

1,350,471

30.2

%

Paycheck Protection Program

10,391

0.2

%

36,260

0.8

%

476,282

10.7

%

Installment and other

926

0.0

%

945

0.0

%

982

0.0

%

Leasing financing receivables

438,379

8.5

%

379,527

7.9

%

267,300

6.0

%

Total originated loans and leases

$

4,818,943

93.2

%

$

4,393,834

91.7

%

$

3,913,327

87.6

%

Acquired impaired loans

Commercial real estate

$

60,075

1.2

%

$

67,092

1.4

%

$

91,313

2.0

%

Residential real estate

39,902

0.8

%

47,347

1.0

%

67,401

1.5

%

Construction, land development, and
other land

1,184

0.0

%

1,357

0.0

%

2,008

0.0

%

Commercial and industrial

3,232

0.1

%

3,792

0.1

%

7,444

0.2

%

Installment and other

157

0.0

%

163

0.0

%

180

0.0

%

Total acquired impaired loans

$

104,550

2.1

%

$

119,751

2.5

%

$

168,346

3.7

%

Acquired non-impaired loans and leases

Commercial real estate

$

167,425

3.2

%

$

184,353

3.8

%

$

254,739

5.6

%

Residential real estate

40,174

0.8

%

47,735

1.0

%

65,119

1.5

%

Construction, land development, and
other land

191

0.0

%

196

0.1

%

208

0.0

%

Commercial and industrial

32,569

0.6

%

37,794

0.8

%

58,320

1.3

%

Installment and other

227

0.0

%

248

0.0

%

311

0.0

%

Leasing financing receivables

3,992

0.1

%

5,157

0.1

%

9,087

0.3

%

Total acquired non-impaired loans
and leases

$

244,578

4.7

%

$

275,483

5.8

%

$

387,784

8.7

%

Total loans and leases

$

5,168,071

100.0

%

$

4,789,068

100.0

%

$

4,469,457

100.0

%

Allowance for loan and lease losses

(62,436

)

(59,458

)

(61,719

)

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

$

5,105,635

$

4,729,610

$

4,407,738

PPP loans outstanding were $10.4 million as of June 30, 2022, compared with $36.3 million as of March 31, 2022. The decreased was as a result of forgiveness of PPP loans. Forgiveness for the second quarter 2022 was $25.9 million compared to $73.7 million for the first quarter of 2022. As of June 30, 2022, 115 PPP loans remain outstanding, and more than 97% of PPP loan balances have been forgiven.

Byline Bancorp, Inc.

Page 7 of 17

ASSET QUALITY

Non-Performing Assets

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

June 30, 2022

Change from

(dollars in thousands)

June 30, 2022

March 31, 2022

June 30, 2021

March 31, 2022

June 30, 2021

Non-performing assets:

Non-accrual loans and leases

$

33,944

$

20,277

$

35,514

67.4

%

(4.4

)%

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

-

-

-

-%

-%

Total non-performing loans and leases

$

33,944

$

20,277

$

35,514

67.4

%

(4.4

)%

Other real estate owned

4,749

2,221

4,417

113.8

%

7.5

%

Total non-performing assets

$

38,693

$

22,498

$

39,931

72.0

%

(3.1

)%

Accruing troubled debt restructured loans (1)

$

1,358

$

1,456

$

2,395

(6.7

)%

(43.3

)%

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

0.66

%

0.42

%

0.79

%

Total non-performing assets as a percentage
of total assets

0.54

%

0.33

%

0.61

%

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

183.94

%

293.23

%

173.79

%

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

Non-accrual loans guaranteed

$

1,731

$

1,832

$

5,847

(5.5

)%

(70.4

)%

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

-

-

-

-%

-%

Total non-performing loans guaranteed

$

1,731

$

1,832

$

5,847

(5.5

)%

(70.4

)%

Accruing troubled debt restructured loans
guaranteed (1)

$

-

$

-

$

-

-%

-%

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

0.62

%

0.39

%

0.66

%

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

0.52

%

0.30

%

0.52

%

(1) Accruing troubled debt restructured loans are not included in total non-performing loans and leases or in non-performing assets.

Variances in non-performing assets were:

Non-performing loans and leases were $33.9 million at June 30, 2022, an increase of $13.7 million from $20.3 million at March 31, 2022 primarily due to one conventional non-performing relationship.
Other real estate owned was $4.7 million at June 30, 2022, an increase of $2.5 million from $2.2 million at March 31, 2022, primarily due to the transfer of one property into other real estate owned.

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

June 30,

March 31,

June 30,

(dollars in thousands)

2022

2022

2021

Allowance for loan and lease losses, beginning of period

$

59,458

$

55,012

$

65,590

Provision/(recapture) for loan and lease losses

5,908

4,995

(1,969

)

Net charge-offs of loans and leases

(2,930

)

(549

)

(1,902

)

Allowance for loan and lease losses, end of period

$

62,436

$

59,458

$

61,719

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

1.21

%

1.24

%

1.38

%

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

0.24

%

0.05

%

0.17

%

Provision/(recapture) for loan and lease losses
to net charge-offs during the period

2.02

x

9.09

x

(1.04)x

Byline Bancorp, Inc.

Page 8 of 17

The allowance for loan and lease losses as a percentage of total loans and leases held for investment decreased to 1.21% at June 30, 2022 compared to 1.24% at March 31, 2022, primarily due to growth in the loan and lease portfolio, as well as the change in the mix of the portfolio.

In June 2016, the Financial Accounting Standards Board ("FASB") issued new guidance on the recognition of credit losses, otherwise known as "CECL", which replaces the incurred loss impairment methodology with a methodology that reflects current expected credit losses. In November 2019, the FASB delayed the effective date of the standard for smaller reporting companies, which includes emerging growth companies. The Company anticipates adopting the standard on December 31, 2022. We are in the process of implementation and determining the impact that this new authoritative guidance will have on our consolidated financial statements.

Net Charge-Offs

Net charge-offs during the second quarter of 2022 were $2.9 million, or 0.23% of average loans and leases, on an annualized basis, an increase of $2.4 million compared to $549,000, or 0.05% of average loans and leases, during the first quarter of 2022, and an increase of $1.0 million from $1.9 million or 0.17% of average loans and leases from the comparable period a year ago.

Net charge-offs for the second quarter of 2022 included $2.7 million in the unguaranteed portion of U.S. government guaranteed loans, while net charge-offs for the first quarter of 2022 and second quarter of 2021 included $362,000 and $1.6 million, respectively, 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, 2022
Change from

(dollars in thousands)

June 30, 2022

March 31, 2022

June 30, 2021

March 31, 2022

June 30, 2021

Non-interest-bearing demand deposits

$

2,180,927

$

2,281,612

$

2,089,455

(4.4

)%

4.4

%

Interest-bearing checking accounts

535,856

596,497

653,558

(10.2

)%

(18.0

)%

Money market demand accounts

1,323,287

1,357,679

1,023,675

(2.5

)%

29.3

%

Other savings

669,164

659,218

613,136

1.5

%

9.1

%

Time deposits (below $250,000)

544,759

505,141

567,469

7.8

%

(4.0

)%

Time deposits ($250,000 and above)

134,384

129,955

144,902

3.4

%

(7.3

)%

Total deposits

$

5,388,377

$

5,530,102

$

5,092,195

(2.6

)%

5.8

%

Total deposits decreased to $5.4 billion at June 30, 2022 compared to $5.5 billion at March 31, 2022. Non-interest-bearing deposits were 40.5% and 41.3% of total deposits at June 30, 2022 and March 31, 2022, respectively.

The decrease in the current quarter was primarily due to:

A decrease in non-interest-bearing deposits of $100.7 million, primarily due to decreases in commercial deposits; and
A decrease in interest-bearing checking accounts of $60.6 million, driven primarily by decreases in business accounts.

Partially offset by:

An increase in time deposits of $44.0 million, principally driven by an increase in brokered deposits.

Total borrowings and other liabilities were $978.2 million at June 30, 2022, an increase of $462.3 million from $515.9 million at March 31, 2022, primarily driven by a $370.0 million increase in FHLB advances and a $45.0 million increase in federal funds purchased.

Byline Bancorp, Inc.

Page 9 of 17

Stockholders' Equity

Total stockholders' equity was $765.2 million at June 30, 2022, a decrease of $23.5 million from $788.7 million at March 31, 2022. The decrease was primarily due to an increase in accumulated other comprehensive loss, and the repurchase of shares of our common stock under the Company's stock repurchase program. These were offset by an increase to retained earnings.

Under its stock repurchase program, the Company repurchased an aggregate 232,000 shares of its common stock at an average price of $23.84 per share during the second quarter of 2022.

The following table presents actual regulatory capital dollar amounts and ratios of the Company and Byline Bank as of June 30, 2022:

Actual

Minimum Capital
Required

Required to be
Considered
Well Capitalized

June 30, 2022

Amount

Ratio

Amount

Ratio

Amount

Ratio

Total capital to risk weighted assets:

Company

$

853,822

13.09

%

$

521,687

8.00

%

N/A

N/A

Bank

801,925

12.34

%

519,994

8.00

%

$

649,992

10.00

%

Tier 1 capital to risk weighted assets:

Company

$

714,195

10.95

%

$

391,265

6.00

%

N/A

N/A

Bank

$

737,298

11.34

%

389,995

6.00

%

$

519,994

8.00

%

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

Company

$

669,195

10.26

%

$

293,449

4.50

%

N/A

N/A

Bank

737,298

11.34

%

292,496

4.50

%

$

422,495

6.50

%

Tier 1 capital to average assets:

Company

$

714,195

10.34

%

$

276,366

4.00

%

N/A

N/A

Bank

737,298

10.68

%

$

276,159

4.00

%

$

345,199

5.00

%

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

Conference Call, Webcast and Slide Presentation

We will host a conference call and webcast at 9:00 a.m. Central Time on Friday, July 29, 2022 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 (844) 200-6205; passcode 761227. A recorded replay can be accessed through August 12, 2022 by dialing (866) 813-9403; passcode: 015913.

A slide presentation relating to our second quarter 2022 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 websiteatwww.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 $7.1 billion in assets and operates more than 30 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.

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

Byline Bancorp, Inc.

Page 10 of 17

are often, but not always, made through the use of words or phrases such as ''may'', ''might'', ''should'', ''could'', ''predict'', ''potential'', ''believe'', ''expect'', ''continue'', ''will'', ''anticipate'', ''seek'', ''estimate'', ''intend'', ''plan'', ''projection'', ''would'', ''annualized'', "target" and ''outlook'', or the negative version of those words or other comparable words or phrases of a future or forward-looking nature. Forward-looking statements involve estimates and known and unknown risks, and reflect various assumptions and involve elements of subjective judgement and analysis, which may or may not prove to be correct, and which are subject to uncertainties and contingencies outside the control of Byline and its respective affiliates, directors, employees and other representatives, which could cause actual results to differ materially from those presented in this communication.

No representations, warranties or guarantees are or will be made by Byline as to the reliability, accuracy or completeness of any forward-looking statements contained in this communication or that such forward-looking statements are or will remain based on reasonable assumptions. You should not place undue reliance on any forward-looking statements contained in this communication.

Certain risks and important factors that could affect Byline's future results are identified in 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, 2021. 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.

Contacts:

Investors:

Media:

Brooks Rennie

Erin O'Neill

Investor Relations Director

Marketing Director

312-660-5805

773-475-2901

brennie@bylinebank.com

eoneill@bylinebank.com

Byline Bancorp, Inc.

Page 11 of 17

BYLINE BANCORP, INC. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION (unaudited)

June 30,

March 31,

December 31,

September 30,

June 30,

(dollars in thousands)

2022

2022

2021

2021

2021

ASSETS

Cash and due from banks

$

58,844

$

48,015

$

35,247

$

46,900

$

50,558

Interest bearing deposits with other banks

83,057

105,564

122,684

95,978

52,138

Cash and cash equivalents

141,901

153,579

157,931

142,878

102,696

Equity and other securities, at fair value

7,860

10,677

10,578

10,299

10,575

Securities available-for-sale, at fair value

1,273,138

1,369,368

1,454,542

1,427,605

1,495,789

Securities held-to-maturity, at amortized cost

3,880

3,882

3,885

3,887

3,890

Restricted stock, at cost

30,002

13,977

22,002

15,927

11,927

Loans held for sale

17,284

39,520

64,460

48,372

25,046

Loans and leases:

Loans and leases

5,168,071

4,789,068

4,537,128

4,609,228

4,469,457

Allowance for loan and lease losses

(62,436

)

(59,458

)

(55,012

)

(60,598

)

(61,719

)

Net loans and leases

5,105,635

4,729,610

4,482,116

4,548,630

4,407,738

Servicing assets, at fair value

22,155

24,497

23,744

23,597

24,683

Premises and equipment, net

60,773

62,281

62,548

76,995

80,482

Other real estate owned, net

4,749

2,221

2,112

3,033

4,417

Goodwill and other intangible assets, net

162,094

163,962

165,558

167,296

169,034

Bank-owned life insurance

81,100

80,604

80,039

60,992

60,628

Deferred tax assets, net

78,950

67,335

50,329

45,165

43,127

Accrued interest receivable and other assets

142,196

113,123

116,328

129,775

100,570

Total assets

$

7,131,717

$

6,834,636

$

6,696,172

$

6,704,451

$

6,540,602

LIABILITIES AND STOCKHOLDERS' EQUITY

LIABILITIES

Non-interest-bearing demand deposits

$

2,180,927

$

2,281,612

$

2,158,420

$

2,117,749

$

2,089,455

Interest-bearing deposits

3,207,450

3,248,490

2,996,627

3,040,529

3,002,740

Total deposits

5,388,377

5,530,102

5,155,047

5,158,278

5,092,195

Other borrowings

748,092

311,450

519,723

539,119

446,836

Subordinated notes, net

73,604

73,560

73,517

73,473

73,429

Junior subordinated debentures issued to
capital trusts, net

37,123

37,011

36,906

36,796

36,682

Accrued expenses and other liabilities

119,360

93,842

74,597

72,367

74,387

Total liabilities

6,366,556

6,045,965

5,859,790

5,880,033

5,723,529

STOCKHOLDERS' EQUITY

Preferred stock

-

-

10,438

10,438

10,438

Common stock

388

388

387

386

385

Additional paid-in capital

595,938

595,006

593,753

592,192

590,422

Retained earnings

307,278

290,397

271,676

258,077

236,363

Treasury stock

(47,181

)

(40,732

)

(31,570

)

(31,161

)

(20,712

)

Accumulated other comprehensive income
(loss), net of tax

(91,262

)

(56,388

)

(8,302

)

(5,514

)

177

Total stockholders' equity

765,161

788,671

836,382

824,418

817,073

Total liabilities and stockholders' equity

$

7,131,717

$

6,834,636

$

6,696,172

$

6,704,451

$

6,540,602

Byline Bancorp, Inc.

Page 12 of 17

BYLINE BANCORP, INC. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF OPERATIONS (unaudited)

Three Months Ended

Six Months Ended

(dollars in thousands,

June 30,

March 31,

December 31,

September 30,

June 30,

June 30,

June 30,

except per share data)

2022

2022

2021

2021

2021

2022

2021

INTEREST AND DIVIDEND INCOME

Interest and fees on loans and leases

$

59,674

$

55,426

$

58,570

$

56,291

$

54,324

$

115,100

$

108,132

Interest on securities

6,264

6,155

5,619

5,534

6,359

12,419

12,448

Other interest and dividend income

608

237

495

947

628

845

890

Total interest and dividend income

66,546

61,818

64,684

62,772

61,311

128,364

121,470

INTEREST EXPENSE

Deposits

2,128

1,087

1,037

986

1,058

3,215

2,479

Other borrowings

1,097

395

330

349

482

1,492

984

Subordinated notes and debentures

1,694

1,600

1,589

1,592

1,597

3,294

3,193

Total interest expense

4,919

3,082

2,956

2,927

3,137

8,001

6,656

Net interest income

61,627

58,736

61,728

59,845

58,174

120,363

114,814

PROVISION/(RECAPTURE) FOR LOAN
AND LEASE LOSSES

5,908

4,995

(1,293

)

352

(1,969

)

10,903

2,398

Net interest income after
provision/(recapture) for
loan and lease losses

55,719

53,741

63,021

59,493

60,143

109,460

112,416

NON-INTEREST INCOME

Fees and service charges on deposits

2,059

1,884

1,955

1,867

1,768

3,943

3,432

Loan servicing revenue

3,384

3,380

3,392

3,344

3,188

6,764

5,957

Loan servicing asset revaluation

(4,636

)

(1,231

)

(2,510

)

(2,650

)

7

(5,867

)

(1,498

)

ATM and interchange fees

1,131

1,049

1,219

1,201

1,044

2,180

2,056

Net realized gains (losses) on securities
available-for-sale

52

-

(21

)

130

(136

)

52

1,326

Change in fair value of equity securities,
net

(697

)

(35

)

(98

)

(275

)

517

(732

)

311

Net gains on sales of loans

9,983

10,827

12,924

12,761

12,270

20,810

20,589

Wealth management and trust income

900

1,048

764

815

722

1,948

1,490

Other non-interest income

1,985

2,504

1,389

1,302

1,622

4,489

3,081

Total non-interest income

14,161

19,426

19,014

18,495

21,002

33,587

36,744

NON-INTEREST EXPENSE

Salaries and employee benefits

27,697

28,959

28,850

25,978

24,588

56,656

46,394

Occupancy and equipment expense, net

4,409

5,128

4,995

4,982

4,856

9,537

10,635

Impairment charge on assets
held for sale

-

-

8,351

1,434

1,943

-

2,547

Loan and lease related expenses

942

(891

)

2,328

1,175

1,503

51

2,454

Legal, audit, and other professional fees

1,820

2,600

2,376

2,710

2,898

4,420

5,112

Data processing

3,396

3,186

3,070

3,108

2,847

6,582

5,602

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

158

54

26

42

389

212

1,010

Other intangible assets amortization expense

1,868

1,596

1,738

1,738

1,848

3,464

3,597

Other non-interest expense

3,483

3,923

7,234

3,013

2,109

7,406

4,472

Total non-interest expense

43,773

44,555

58,968

44,180

42,981

88,328

81,823

INCOME BEFORE PROVISION FOR INCOME TAXES

26,107

28,612

23,067

33,808

38,164

54,719

67,337

PROVISION FOR INCOME TAXES

5,824

6,301

5,878

8,502

9,672

12,125

17,047

NET INCOME

20,283

22,311

17,189

25,306

28,492

42,594

50,290

Dividends on preferred shares

-

196

196

196

195

196

391

INCOME AVAILABLE TO COMMON STOCKHOLDERS

$

20,283

$

22,115

$

16,993

$

25,110

$

28,297

$

42,398

$

49,899

EARNINGS PER COMMON SHARE

Basic

$

0.55

$

0.60

$

0.46

$

0.68

$

0.75

$

1.14

$

1.31

Diluted

$

0.54

$

0.58

$

0.45

$

0.66

$

0.73

$

1.12

$

1.29

Byline Bancorp, Inc.

Page 13 of 17

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

June 30,

March 31,

December 31,

September 30,

June 30,

June 30,

June 30,

and per share data)

2022

2022

2021

2021

2021

2022

2021

Earnings per Common Share

Basic earnings per common share

$

0.55

$

0.60

$

0.46

$

0.68

$

0.75

$

1.14

$

1.31

Diluted earnings per common share

$

0.54

$

0.58

$

0.45

$

0.66

$

0.73

$

1.12

$

1.29

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

$

0.54

$

0.58

$

0.69

$

0.69

$

0.77

$

1.12

$

1.34

Weighted average common shares
outstanding (basic)

37,064,795

37,123,161

37,124,176

37,200,778

37,965,658

37,093,816

38,064,381

Weighted average common shares
outstanding (diluted)

37,612,268

38,042,822

37,999,401

38,018,301

38,696,036

37,740,682

38,773,018

Common shares outstanding

37,669,102

37,811,582

37,713,903

37,690,087

38,094,972

37,669,102

38,094,972

Cash dividends per common share

$

0.09

$

0.09

$

0.09

$

0.09

$

0.06

$

0.18

$

0.12

Dividend payout ratio on
common stock

16.67

%

15.52

%

20.00

%

13.64

%

8.22

%

16.07

%

9.30

%

Tangible book value per
common share(1)

$

16.01

$

16.52

$

17.51

$

17.16

$

16.74

$

16.01

$

16.74

Key Ratios and Performance Metrics
(annualized where applicable)

Net interest margin, fully taxable
equivalent (1)(5)

3.77

%

3.82

%

3.97

%

3.92

%

3.76

%

3.80

%

3.77

%

Average cost of deposits

0.16

%

0.08

%

0.08

%

0.08

%

0.08

%

0.12

%

0.10

%

Efficiency ratio(2)

55.29

%

54.96

%

70.88

%

54.18

%

51.95

%

55.12

%

51.61

%

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

55.29

%

54.96

%

55.46

%

52.35

%

49.50

%

55.12

%

49.93

%

Non-interest expense to average assets

2.52

%

2.69

%

3.49

%

2.67

%

2.57

%

2.60

%

2.48

%

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

2.52

%

2.69

%

2.76

%

2.58

%

2.45

%

2.60

%

2.40

%

Return on average stockholders' equity

10.42

%

10.87

%

8.13

%

12.19

%

14.10

%

10.65

%

12.54

%

Adjusted return on average
stockholders' equity(1)(3)(4)

10.42

%

10.87

%

12.42

%

12.69

%

14.80

%

10.65

%

13.01

%

Return on average assets

1.17

%

1.35

%

1.02

%

1.53

%

1.70

%

1.26

%

1.52

%

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

1.17

%

1.35

%

1.56

%

1.59

%

1.78

%

1.26

%

1.58

%

Non-interest income to total
revenues(1)

18.69

%

24.85

%

23.55

%

23.61

%

26.53

%

21.82

%

24.24

%

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

1.84

%

2.03

%

1.29

%

2.07

%

2.16

%

1.93

%

2.11

%

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

1.84

%

2.03

%

2.03

%

2.15

%

2.28

%

1.93

%

2.19

%

Return on average tangible common
stockholders' equity(1)

14.06

%

14.36

%

10.94

%

16.22

%

18.87

%

14.21

%

16.88

%

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

14.06

%

14.36

%

16.38

%

16.86

%

19.77

%

14.21

%

17.48

%

Non-interest-bearing deposits to
total deposits

40.47

%

41.26

%

41.87

%

41.06

%

41.03

%

40.47

%

41.03

%

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

96.23

%

87.31

%

89.26

%

90.29

%

88.26

%

96.23

%

88.26

%

Deposits to total liabilities

84.64

%

91.47

%

87.97

%

87.73

%

88.97

%

84.64

%

88.97

%

Deposits per branch

$

141,799

$

125,684

$

117,160

$

117,234

$

115,732

$

141,799

$

115,732

Asset Quality Ratios

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

0.66

%

0.42

%

0.51

%

0.75

%

0.79

%

0.66

%

0.79

%

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

1.21

%

1.24

%

1.21

%

1.31

%

1.38

%

1.21

%

1.38

%

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

0.24

%

0.05

%

0.37

%

0.13

%

0.17

%

0.15

%

0.32

%

Acquisition accounting adjustments(4)

$

3,050

$

3,364

$

4,769

$

6,327

$

9,393

$

3,050

$

9,393

Capital Ratios

Common equity to total assets

10.73

%

11.54

%

12.33

%

12.14

%

12.33

%

10.73

%

12.33

%

Tangible common equity to
tangible assets(1)

8.65

%

9.36

%

10.11

%

9.89

%

10.01

%

8.65

%

10.01

%

Leverage ratio

10.34

%

10.70

%

10.89

%

11.21

%

10.82

%

10.34

%

10.82

%

Common equity tier 1 capital ratio

10.26

%

10.75

%

11.39

%

11.32

%

11.97

%

10.26

%

11.97

%

Tier 1 capital ratio

10.95

%

11.49

%

12.37

%

12.32

%

13.05

%

10.95

%

13.05

%

Total capital ratio

13.09

%

13.72

%

14.70

%

14.78

%

15.74

%

13.09

%

15.74

%

(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.

(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.

(5) 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.

Page 14 of 17

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,

2022

2021

(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

$

70,404

$

103

0.29

%

$

65,484

$

56

0.17

%

Loans and leases(1)

4,840,510

115,100

4.80

%

4,461,884

108,132

4.89

%

Taxable securities

1,334,747

11,379

1.72

%

1,453,976

11,326

1.57

%

Tax-exempt securities(2)

169,107

2,255

2.69

%

183,689

2,475

2.72

%

Total interest-earning assets

$

6,414,768

$

128,837

4.05

%

$

6,165,033

$

121,989

3.99

%

Allowance for loan and lease losses

(57,895

)

(66,415

)

All other assets

484,728

555,877

TOTAL ASSETS

$

6,841,601

$

6,654,495

LIABILITIES AND STOCKHOLDERS'
EQUITY

Deposits

Interest checking

$

597,665

$

593

0.20

%

$

587,030

$

419

0.14

%

Money market accounts

1,281,519

1,668

0.26

%

1,087,964

660

0.12

%

Savings

657,155

159

0.05

%

592,350

139

0.05

%

Time deposits

644,543

795

0.25

%

747,366

1,261

0.34

%

Total interest-bearing deposits

3,180,882

3,215

0.20

%

3,014,710

2,479

0.17

%

Other borrowings

394,385

1,478

0.76

%

646,093

984

0.31

%

Federal funds purchased

1,271

14

2.32

%

-

-

0.00

%

Subordinated notes and debentures

110,570

3,294

6.01

%

109,945

3,193

5.86

%

Total borrowings

506,226

4,786

1.91

%

756,038

4,177

1.11

%

Total interest-bearing liabilities

$

3,687,108

$

8,001

0.44

%

$

3,770,748

$

6,656

0.36

%

Non-interest-bearing demand deposits

2,256,778

2,005,213

Other liabilities

91,451

70,052

Total stockholders' equity

806,264

808,482

TOTAL LIABILITIES AND
STOCKHOLDERS' EQUITY

$

6,841,601

$

6,654,495

Net interest spread(3)

3.61

%

3.63

%

Net interest income, fully
taxable equivalent

$

120,836

$

115,333

Net interest margin, fully
taxable equivalent(2)(4)

3.80

%

3.77

%

Tax-equivalent adjustment

(473

)

0.02

%

(519

)

0.01

%

Net interest income

$

120,363

$

114,814

Net interest margin(4)

3.78

%

3.76

%

Net loan accretion impact on margin

$

2,859

0.09

%

$

3,363

0.11

%

(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 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.

Page 15 of 17

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 Six Months Ended

June 30,

March 31,

December 31,

September 30,

June 30,

June 30,

June 30,

(dollars in thousands, except per share data)

2022

2022

2021

2021

2021

2022

2021

Net income and earnings per share
excluding significant items

Reported Net Income

$

20,283

$

22,311

$

17,189

$

25,306

$

28,492

$

42,594

$

50,290

Significant items:

Impairment charges on assets held
for sale and ROU asset

-

-

12,449

1,434

1,943

-

2,547

Tax benefit

-

-

(3,377

)

(390

)

(530

)

-

(695

)

Adjusted Net Income

$

20,283

$

22,311

$

26,261

$

26,350

$

29,905

$

42,594

$

52,142

Reported Diluted Earnings per Share

$

0.54

$

0.58

$

0.45

$

0.66

$

0.73

$

1.12

$

1.29

Significant items:

Impairment charges on assets held
for sale and ROU asset

-

-

0.33

0.04

0.05

-

0.07

Tax benefit

-

-

(0.09

)

(0.01

)

(0.01

)

-

(0.02

)

Adjusted Diluted Earnings per Share

$

0.54

$

0.58

$

0.69

$

0.69

$

0.77

$

1.12

$

1.34

Byline Bancorp, Inc.

Page 16 of 17

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 Six Months Ended

(dollars in thousands, except per share data,

June 30,

March 31,

December 31,

September 30,

June 30,

June 30,

June 30,

ratios annualized, where applicable)

2022

2022

2021

2021

2021

2022

2021

Adjusted non-interest expense:

Non-interest expense

$

43,773

$

44,555

$

58,968

$

44,180

$

42,981

$

88,328

$

81,823

Less: Significant items

Impairment charges on assets held for sale
and ROU asset

-

-

12,449

1,434

1,943

-

2,547

Adjusted non-interest expense

$

43,773

$

44,555

$

46,519

$

42,746

$

41,038

$

88,328

$

79,276

Adjusted non-interest expense excluding
amortization of intangible assets:

Adjusted non-interest expense

$

43,773

$

44,555

$

46,519

$

42,746

$

41,038

$

88,328

$

79,276

Less: Amortization of intangible assets

1,868

1,596

1,738

1,738

1,848

3,464

3,597

Adjusted non-interest expense excluding
amortization of intangible assets

$

41,905

$

42,959

$

44,781

$

41,008

$

39,190

$

84,864

$

75,679

Pre-tax pre-provision net income:

Pre-tax income

$

26,107

$

28,612

$

23,067

$

33,808

$

38,164

$

54,719

$

67,337

Add: Provision/(recapture) for loan
and lease losses

5,908

4,995

(1,293

)

352

(1,969

)

10,903

2,398

Pre-tax pre-provision net income

$

32,015

$

33,607

$

21,774

$

34,160

$

36,195

$

65,622

$

69,735

Adjusted pre-tax pre-provision net income:

Pre-tax pre-provision net income

$

32,015

$

33,607

$

21,774

$

34,160

$

36,195

$

65,622

$

69,735

Impairment charges on assets held for sale
and ROU asset

-

-

12,449

1,434

1,943

-

2,547

Adjusted pre-tax pre-provision net income

$

32,015

$

33,607

$

34,223

$

35,594

$

38,138

$

65,622

$

72,282

Tax equivalent net interest income

Net interest income

$

61,627

$

58,736

$

61,728

$

59,845

$

58,174

$

120,363

$

114,814

Add: Tax-equivalent adjustment

237

236

256

264

269

473

519

Net interest income, fully taxable equivalent

$

61,864

$

58,972

$

61,984

$

60,109

$

58,443

$

120,836

$

115,333

Total revenue:

Net interest income

$

61,627

$

58,736

$

61,728

$

59,845

$

58,174

$

120,363

$

114,814

Add: Non-interest income

14,161

19,426

19,014

18,495

21,002

33,587

36,744

Total revenue

$

75,788

$

78,162

$

80,742

$

78,340

$

79,176

$

153,950

$

151,558

Tangible common stockholders' equity:

Total stockholders' equity

$

765,161

$

788,671

$

836,382

$

824,418

$

817,073

$

765,161

$

817,073

Less: Preferred stock

-

-

10,438

10,438

10,438

-

10,438

Less: Goodwill and other intangibles

162,094

163,962

165,558

167,296

169,034

162,094

169,034

Tangible common stockholders' equity

$

603,067

$

624,709

$

660,386

$

646,684

$

637,601

$

603,067

$

637,601

Tangible assets:

Total assets

$

7,131,717

$

6,834,636

$

6,696,172

$

6,704,451

$

6,540,602

$

7,131,717

$

6,540,602

Less: Goodwill and other intangibles

162,094

163,962

165,558

167,296

169,034

162,094

169,034

Tangible assets

$

6,969,623

$

6,670,674

$

6,530,614

$

6,537,155

$

6,371,568

$

6,969,623

$

6,371,568

Average tangible common stockholders'
equity:

Average total stockholders' equity

$

780,652

$

832,161

$

838,975

$

823,754

$

810,490

$

806,264

$

808,482

Less: Average preferred stock

-

9,974

10,438

10,438

10,438

4,959

10,438

Less: Average goodwill and other
intangibles

163,068

164,837

166,396

168,140

169,906

163,948

170,845

Average tangible common stockholders'
equity

$

617,584

$

657,350

$

662,141

$

645,176

$

630,146

$

637,357

$

627,199

Average tangible assets:

Average total assets

$

6,975,725

$

6,705,986

$

6,699,069

$

6,560,868

$

6,720,492

$

6,841,601

$

6,654,495

Less: Average goodwill and other
intangibles

163,068

164,837

166,396

168,140

169,906

163,948

170,845

Average tangible assets

$

6,812,657

$

6,541,149

$

6,532,673

$

6,392,728

$

6,550,586

$

6,677,653

$

6,483,650

Tangible net income available to common
stockholders:

Net income available to common
stockholders

$

20,283

$

22,115

$

16,993

$

25,110

$

28,297

$

42,398

$

49,899

Add: After-tax intangible asset amortization

1,361

1,163

1,266

1,265

1,344

2,524

2,616

Tangible net income available to common
stockholders

$

21,644

$

23,278

$

18,259

$

26,375

$

29,641

$

44,922

$

52,515

Adjusted tangible net income available
to common stockholders:

Tangible net income available to common
stockholders

$

21,644

$

23,278

$

18,259

$

26,375

$

29,641

$

44,922

$

52,515

Impairment charges on assets held for sale
and ROU asset

-

-

12,449

1,434

1,943

-

2,547

Tax benefit on significant items

-

-

(3,377

)

(390

)

(530

)

-

(695

)

Adjusted tangible net income available to
common stockholders

$

21,644

$

23,278

$

27,331

$

27,419

$

31,054

$

44,922

$

54,367

Byline Bancorp, Inc.

Page 17 of 17

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 Six Months Ended

(dollars in thousands, except share and per share
data, ratios annualized, where applicable)

June 30,

March 31,

December 31,

September 30,

June 30,

June 30,

June 30,

2022

2022

2021

2021

2021

2022

2021

Pre-tax pre-provision return on average assets:

Pre-tax pre-provision net income

$

32,015

$

33,607

$

21,774

$

34,160

$

36,195

$

65,622

$

69,735

Average total assets

6,975,725

6,705,986

6,699,069

6,560,868

6,720,492

6,841,601

6,654,495

Pre-tax pre-provision return on average assets

1.84

%

2.03

%

1.29

%

2.07

%

2.16

%

1.93

%

2.11

%

Adjusted pre-tax pre-provision return on average
assets:

Adjusted pre-tax pre-provision net income

$

32,015

$

33,607

$

34,223

$

35,594

$

38,138

$

65,622

$

72,282

Average total assets

6,975,725

6,705,986

6,699,069

6,560,868

6,720,492

6,841,601

6,654,495

Adjusted pre-tax pre-provision return on average
assets

1.84

%

2.03

%

2.03

%

2.15

%

2.28

%

1.93

%

2.19

%

Net interest margin, fully taxable equivalent

Net interest income, fully taxable equivalent

$

61,864

$

58,972

$

61,984

$

60,109

$

58,443

$

120,836

$

115,333

Total average interest-earning assets

6,573,878

6,253,889

6,189,762

6,076,065

6,231,616

6,414,768

6,165,033

Net interest margin, fully taxable equivalent

3.77

%

3.82

%

3.97

%

3.92

%

3.76

%

3.80

%

3.77

%

Non-interest income to total revenues:

Non-interest income

$

14,161

$

19,426

$

19,014

$

18,495

$

21,002

$

33,587

$

36,744

Total revenues

75,788

78,162

80,742

78,340

79,176

153,950

151,558

Non-interest income to total revenues

18.69

%

24.85

%

23.55

%

23.61

%

26.53

%

21.82

%

24.24

%

Adjusted non-interest expense to average assets:

Adjusted non-interest expense

$

43,773

$

44,555

$

46,519

$

42,746

$

41,038

$

88,328

$

79,276

Average total assets

6,975,725

6,705,986

6,699,069

6,560,868

6,720,492

6,841,601

6,654,495

Adjusted non-interest expense to average assets

2.52

%

2.69

%

2.76

%

2.58

%

2.45

%

2.60

%

2.40

%

Adjusted efficiency ratio:

Adjusted non-interest expense excluding
amortization of intangible assets

$

41,905

$

42,959

$

44,781

$

41,008

$

39,190

$

84,864

$

75,679

Total revenues

75,788

78,162

80,742

78,340

79,176

153,950

151,558

Adjusted efficiency ratio

55.29

%

54.96

%

55.46

%

52.35

%

49.50

%

55.12

%

49.93

%

Adjusted return on average assets:

Adjusted net income

$

20,283

$

22,311

$

26,261

$

26,350

$

29,905

$

42,594

$

52,142

Average total assets

6,975,725

6,705,986

6,699,069

6,560,868

6,720,492

6,841,601

6,654,495

Adjusted return on average assets

1.17

%

1.35

%

1.56

%

1.59

%

1.78

%

1.26

%

1.58

%

Adjusted return on average stockholders' equity:

Adjusted net income

$

20,283

$

22,311

$

26,261

$

26,350

$

29,905

$

42,594

$

52,142

Average stockholders' equity

780,652

832,161

838,975

823,754

810,490

806,264

808,482

Adjusted return on average stockholders' equity

10.42

%

10.87

%

12.42

%

12.69

%

14.80

%

10.65

%

13.01

%

Tangible common equity to tangible assets:

Tangible common equity

$

603,067

$

624,709

$

660,386

$

646,684

$

637,601

$

603,067

$

637,601

Tangible assets

6,969,623

6,670,674

6,530,614

6,537,155

6,371,568

6,969,623

6,371,568

Tangible common equity to tangible assets

8.65

%

9.36

%

10.11

%

9.89

%

10.01

%

8.65

%

10.01

%

Return on average tangible common stockholders'
equity:

Tangible net income available to common
stockholders

$

21,644

$

23,278

$

18,259

$

26,375

$

29,641

$

44,922

$

52,515

Average tangible common stockholders' equity

617,584

657,350

662,141

645,176

630,146

637,357

627,199

Return on average tangible common
stockholders' equity

14.06

%

14.36

%

10.94

%

16.22

%

18.87

%

14.21

%

16.88

%

Adjusted return on average tangible common
stockholders' equity:

Adjusted tangible net income available to
common stockholders

$

21,644

$

23,278

$

27,331

$

27,419

$

31,054

$

44,922

$

54,367

Average tangible common stockholders' equity

617,584

657,350

662,141

645,176

630,146

637,357

627,199

Adjusted return on average tangible common
stockholders' equity

14.06

%

14.36

%

16.38

%

16.86

%

19.77

%

14.21

%

17.48

%

Tangible book value per share:

Tangible common equity

$

603,067

$

624,709

$

660,386

$

646,684

$

637,601

$

603,067

$

637,601

Common shares outstanding

37,669,102

37,811,582

37,713,903

37,690,087

38,094,972

37,669,102

38,094,972

Tangible book value per share

$

16.01

$

16.52

$

17.51

$

17.16

$

16.74

$

16.01

$

16.74

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Byline Bancorp Inc. published this content on 28 July 2022 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 28 July 2022 20:27:02 UTC.