Market Overview

Byline Bancorp, Inc. Reports First Quarter 2018 Financial Results

Share:

First Quarter 2018 Highlights

  • Net income of $6.8 million, or $0.22 per diluted share
    • Provision for loan and lease losses was elevated primarily due
      to a single commercial relationship
  • Net interest margin ("NIM") improves to 4.45% for the first quarter
    of 2018, compared to 4.26% for the fourth quarter of 2017. NIM
    excluding accretion income improves to 4.14% for the first quarter of
    2018, compared to 3.96% for the fourth quarter of 2017
  • Loan originations of $65.5 million and lease originations of $21.8
    million
  • Loans were $2.3 billion as of March 31, 2018, an increase of $2.9
    million over the fourth quarter of 2017, and $136.9 million over the
    first quarter of 2017
  • Originated loans and leases grew to $1.6 billion as of March 31,
    2018, an increase of $45.4 million from the fourth quarter of 2017,
    and $302.9 million from first quarter of 2017
  • Total deposits were stable at $2.5 billion and core deposits were
    85.3% of total deposits
  • Received regulatory and stockholder approval for the First Evanston
    Bancorp, Inc. acquisition

Byline Bancorp, Inc. (the "Company")(NYSE:BY), the parent company of
Byline Bank (the "Bank"), today reported net income of $6.8 million, or
$0.22 per diluted share, for the first quarter of 2018, compared with a
net loss of $766,000, or $0.03 per diluted share, for the fourth quarter
of 2017, and net income of $6.6 million, or $0.25 per diluted share, for
the first quarter of 2017.

"Our first quarter results reflect solid growth in net interest income
and an expanding net interest margin, offset by higher credit costs
primarily related to a single commercial relationship," said Alberto J.
Paracchini, President and Chief Executive Officer of Byline Bancorp,
Inc. "We continue to see solid loan growth in our originated portfolio,
driven by strong increases in the commercial and industrial and
construction portfolios, although payoffs and seasonal fluctuations
moderated our overall net loan growth in the quarter. Our loan pipeline
remains healthy, which we believe will result in higher levels of loan
growth later in 2018.

"We continually evaluate all areas of the organization for opportunities
to increase efficiencies. We have identified six branch and two other
facilities within our current network that we believe can be
consolidated with minimal impact on our customer service levels,
convenience, and business development capabilities. We anticipate these
consolidations to occur during June 2018. We estimate that the
consolidations will result in approximately $1.4 million in one-time
charges and approximately $2.0 million in annual cost savings that will
be re-invested over time into our infrastructure.

"Completing the First Evanston Bancorp, Inc. acquisition and ensuring a
smooth transition for customers and colleagues remains our top priority
for 2018. To that end, we have received all required approvals and
expect the transaction to close by the end of May 2018. The addition of
First Evanston will solidify our position as the largest community bank
in Chicago under $10 billion in assets and we believe sets forth a
strong foundation for continued growth," said Mr. Paracchini.

STATEMENTS OF OPERATIONS

Net Interest Income

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

  Three Months Ended
March 31,     December 31,     September 30,     June 30,     March 31,
(dollars in thousands) 2018 2017 2017 2017 2017

INTEREST AND DIVIDEND INCOME

Interest and fees on loans and leases

$ 33,654 $ 31,896 $ 30,933 $ 29,181 $ 28,396
Interest on taxable securities 4,055 3,679 3,720 3,703 3,790
Interest on tax-exempt securities 174 176 174 151 133

Other interest and dividend income

  259   205   217   280   169

Total interest and dividend income

38,142 35,956 35,044 33,315 32,488
INTEREST EXPENSE
Deposits 2,498 2,218 2,112 1,923 1,483
Federal Home Loan Bank advances 1,358 1,009 850 772 660

Subordinated debentures and other borrowings

  591   578   670   809   807
Total interest expense   4,447   3,805   3,632   3,504   2,950
Net interest income $ 33,695 $ 32,151 $ 31,412 $ 29,811 $ 29,538
 

The following table presents the quarter-to-date schedule of average
interest-earning assets and average interest-bearing liabilities for the
periods indicated:

  For the Three Months Ended
March 31,   December 31,
2018 2017
(dollars in thousands) Average

Balance(5)

  Interest

Inc / Exp

    Average

Yield /

Rate

Average

Balance(5)

  Interest

Inc / Exp

    Average

Yield /

Rate

ASSETS    
Cash and cash equivalents $ 38,490 $ 80 0.85 % $ 38,908 $ 74 0.75 %
Loans and leases(1) 2,275,274 33,654 6.00 % 2,233,863 31,896 5.66 %
Securities available-for-sale 628,879 3,623 2.34 % 588,482 3,166 2.13 %
Securities held-to-maturity 101,834 611 2.43 % 106,367 644 2.40 %
Tax-exempt securities(2)   27,480   174 2.57 %   27,504   176 2.55 %
Total interest-earning assets $ 3,071,957 $ 38,142 5.04 % $ 2,995,124 $ 35,956 4.76 %
Allowance for loan and lease losses (17,360 ) (16,844 )
All other assets   307,474   325,393
TOTAL ASSETS $ 3,362,071 $ 3,303,673
LIABILITIES AND STOCKHOLDERS'

EQUITY

Deposits
Interest checking $ 186,686 $ 38 0.08 % $ 188,457 $ 31 0.07 %
Money market accounts 345,545 370 0.43 % 384,864 344 0.35 %
Savings 436,935 76 0.07 % 436,916 78 0.07 %
Time deposits   733,753   2,014 1.11 %   709,044   1,765 0.99 %
Total interest-bearing

deposits

1,702,919 2,498 0.59 % 1,719,281 2,218 0.51 %
Federal Home Loan Bank advances 363,540 1,358 1.52 % 261,888 1,009 1.53 %
Other borrowed funds   56,471   591 4.25 %   58,794   578 3.90 %
Total borrowings   420,011   1,949 1.88 %   320,682   1,587 1.96 %
Total interest-bearing liabilities $ 2,122,930 $ 4,447 0.85 % $ 2,039,963 $ 3,805 0.74 %
Non-interest bearing demand deposits 743,827 767,985
Other liabilities 35,779 32,424
Total stockholders' equity   459,535   463,301
TOTAL LIABILITIES AND

STOCKHOLDERS' EQUITY

$ 3,362,071 $ 3,303,673
Net interest spread(3)   4.19 %   4.02 %
Net interest income $ 33,695 $ 32,151
Net interest margin(4)   4.45 %   4.26 %
 
Net loan accretion impact on margin $ 2,336   0.31 % $ 2,301   0.30 %
Net interest margin excluding loan

accretion(6)

  4.14 %   3.96 %
 
    (1)     Loan and lease balances are net of deferred origination fees and
costs and initial indirect costs. Non-accrual loans and leases are
included in total loan and lease balances.
(2) Interest income and rates exclude the effects of a tax equivalent
adjustment to adjust tax exempt investment income on tax exempt
investment securities to a fully taxable basis due to immateriality.
(3) Represents the average rate earned on interest-earning assets minus
the average rate paid on interest-bearing liabilities.
(4) Represents net interest income (annualized) divided by total average
earning assets.
(5) Average balances are average daily balances.
(6) 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.
 

Net interest income for the first quarter of 2018 was $33.7 million, an
increase of $1.5 million, or 4.8%, from $32.2 million for the fourth
quarter of 2017.

The increase in net interest income was primarily due to:

  • An increase of $1.8 million in interest and fees on loans and leases,
    primarily due to the increase in average yield on loans and leases of
    24 basis points to 6.00% for the first quarter of 2018 compared to
    5.66% for the fourth quarter of 2017; and
  • An increase of $374,000 in interest income on securities, primarily
    due to additional purchases during the quarter.

Partially offset by:

  • An increase of $349,000 in interest expense on Federal Home Loan Bank
    advances, primarily due to an increase in advances outstanding during
    the quarter; and
  • An increase of $280,000 in interest expense on deposits, primarily due
    to increases in time deposits resulting from promotions during the
    quarter.

Net interest margin for the first quarter of 2018 was 4.45%, an increase
of 19 basis points from the fourth quarter of 2017. The net interest
margin increase was primarily driven by the increased loan and lease
yields during the quarter. Total net loan accretion on acquired loans
contributed 31 basis points to the net interest margin for the first
quarter of 2018 and 30 basis points for the fourth quarter of 2017. Net
interest margin excluding loan accretion expanded 18 basis points to
4.14% during the first quarter of 2018, compared to 3.96% for the fourth
quarter of 2017.

The cost of average total deposits was 0.41% for the first quarter of
2018, an increase of six basis points from the fourth quarter of 2017
due to slightly higher rates on interest bearing deposits, growth in
average time deposits of $24.7 million, and a decrease in average
non-interest bearing demand deposits of $24.2 million.

Provision for Loan and Lease Losses

The provision for loan and lease losses was $5.1 million for the first
quarter of 2018, an increase of $1.8 million compared to $3.3 million
for the fourth quarter of 2017. The first quarter provision included
allocations of $1.0 million for acquired non-impaired loans, $3.7
million for originated loans and leases and a $451,000 provision for
acquired impaired loans. The increased provision during the first
quarter of 2018 was mainly due to an increase in a specific reserve on a
commercial loan relationship, slight credit deterioration in the
government guaranteed acquired non-credit impaired portfolio, and an
increase to the general reserve driven by new loan originations.

Non-interest Income

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

  Three Months Ended
March 31,     December 31,     September 30,     June 30,     March 31,
(dollars in thousands) 2018 2017 2017 2017 2017
NON-INTEREST INCOME
Fees and service charges on

deposits

$ 1,312 $ 1,304 $ 1,418 $ 1,348 $ 1,219
Net servicing fees 563 704 959 1,076 919
ATM and interchange fees 1,218 1,498 1,495 1,499 1,348
Net gains on sales of securities

available-for-sale

8
Net gains on sales of loans 7,476 9,036 7,499 8,445 8,082
Other non-interest income   859   97   547   825   732
Total non-interest income $ 11,428 $ 12,639 $ 11,918 $ 13,193 $ 12,308
 

Non-interest income for the first quarter of 2018 was $11.4 million, a
decrease of $1.2 million from $12.6 million for the fourth quarter of
2017.

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

  • A decrease of $1.6 million in net gains on sales of loans, primarily
    due to lower volumes of loans sold;
  • A decrease of $280,000 in ATM and interchange fees, primarily due to
    the revision of our assessment schedule; and
  • A decrease of $141,000 in net servicing fees, primarily due to the
    change in fair value of the servicing asset as a result of increases
    in prepayment speed assumptions on government guaranteed loans.

Partially offset by:

  • An increase of $762,000 in other non-interest income, primarily due to
    a $189,000 gain on sale of an asset held for sale during the first
    quarter of 2018, compared to a $384,000 loss on sale of assets held
    for sale during the fourth quarter of 2017.

During the first quarter of 2018, the Company sold $78.6 million of
government guaranteed loans compared to $87.9 million during the fourth
quarter of 2017, contributing to the decrease in net gains on sale of
loans for the quarter.

Non-interest Expense

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

  Three Months Ended
March 31,   December 31,   September 30,     June 30,     March 31,
(dollars in thousands) 2018 2017 2017 2017 2017
NON-INTEREST EXPENSE
Salaries and employee benefits $ 18,278 $ 17,118 $ 16,323 $ 17,226 $ 16,602
Occupancy expense, net 3,755 3,553 3,301 3,485 3,739
Equipment expense 603 663 630 616 563
Loan and lease related expenses 1,400 1,116 891 801 877
Legal, audit and other professional fees 1,851 2,658 1,608 1,090 1,671
Data processing 2,301 2,284 2,399 2,447 2,409

Net (gain) loss recognized on other real estate owned and other
related expenses

(1 ) (430 ) 565 141 (570 )
Regulatory assessments 241 299 326 384 184
Other intangible assets amortization expense 767 767 769 769 769
Advertising and promotions 249 232 196 318 289
Telecommunications 418 428 351 396 418
Other non-interest expense   2,057   1,670   3,706   1,576   1,900
Total non-interest expense $ 31,919 $ 30,358 $ 31,065 $ 29,249 $ 28,851
 

Non-interest expense for the first quarter of 2018 was $31.9 million, an
increase of $1.6 million from $30.4 million for the fourth quarter of
2017.

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

  • An increase of $1.2 million in salaries and employee benefits,
    primarily due to merit increases, organizational growth, higher
    payroll taxes, and increased employer costs related to benefits;
  • A decrease of $429,000 in net gain recognized on other real estate
    owned and other related expenses, primarily due to a decreased number
    of sales of other real estate owned properties during the quarter;
  • An increase of $387,000 in other non-interest expense, primarily due
    to a $223,000 increase in the reserve for unfunded loan commitments;
    and
  • An increase of $284,000 in loan and lease related expenses, primarily
    due to further loan originations during the quarter.

Partially offset by:

  • A decrease of $807,000 in legal, audit and other professional fees,
    primarily due to professional services incurred related to the First
    Evanston Bancorp, Inc. acquisition compared to the fourth quarter of
    2017.

The Company's efficiency ratio was 69.04% for the first quarter of 2018,
compared with 66.06% for the fourth quarter of 2017.

INCOME TAXES

The Company recorded income tax expense of $1.3 million during the first
quarter of 2018, an effective tax rate of 16.3%, compared to $11.9
million during the fourth quarter of 2017, a decrease of $10.5 million.
The decrease was primarily due to the "H.R. 1", commonly known as the
"Tax Cuts and Jobs Act," which President Donald Trump signed into law on
December 22, 2017. Among other items, the law reduced the federal
corporate income tax rate to 21% effective January 1, 2018. As a result
of the new 21% corporate federal tax rate, the Company expects its
effective tax rate for 2018 to be approximately 27% to 29%.

Also on December 22, 2017, the SEC issued Staff Accounting Bulletin 118
(SAB 118), which provides guidance on accounting for the Tax Act's
impact. SAB 118 provides a measurement period, not to extend beyond one
year from the date of enactment during which a company, acting in good
faith, may complete the accounting for the impacts of the Tax Act. At
March 31, 2018, the Company's accounting for the impact of the Tax Act
on its net deferred tax assets is based upon reasonable estimates of the
tax effects of the Tax Act; however, these estimates may change as
additional information and interpretive guidance regarding the
provisions of the Tax Act become available. As a result of the rate
change, the Company's net deferred tax assets were required to be
revalued during the period in which the new legislation was enacted, and
we recorded net income tax expense of $7.2 million during the fourth
quarter of 2017, and net income tax benefit of $724,000 during the first
quarter of 2018.

STATEMENTS OF FINANCIAL CONDITION

Total assets were $3.5 billion at March 31, 2018, an increase of $96.2
million from $3.4 billion at December 31, 2017, and an increase of
$177.7 million compared to $3.3 billion at March 31, 2017.

The increase was primarily due to:

  • An increase in interest bearing deposits with other banks of $71.7
    million, primarily due to an increase in deposits with the Federal
    Reserve Bank at March 31, 2018, due to timing of public funds
    returning on the last day of the quarter;
  • An increase in securities of $37.9 million due to additional purchases
    of agency, mortgage-backed, and U.S. Treasury securities during the
    first quarter of 2018; and
  • An increase in loans and leases of $2.9 million due to an increase of
    $45.3 million in our originated loan portfolio counteracted by a
    decrease of $42.4 in our acquired loan portfolio primarily from
    payoffs.

Partially offset by:

  • A decrease in due from counterparty of $19.8 million due to a decrease
    in loans sold and not settled at March 31, 2018.

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

     
March 31, 2018 December 31, 2017 March 31, 2017
(dollars in thousands) Amount   % of Total Amount   % of Total Amount   % of Total
Originated loans and leases      
Commercial real estate $ 485,324 21.3 % $ 513,622 22.5 % $ 380,292 17.7 %
Residential real estate 397,516 17.4 % 400,571 17.6 % 391,940 18.3 %

Construction, land development, and other land

110,092 4.8 % 97,638 4.3 % 89,466 4.2 %
Commercial and industrial 470,689 20.6 % 416,499 18.3 % 323,422 15.1 %
Installment and other 3,645 0.2 % 3,724 0.2 % 2,016 0.0 %
Leasing financing receivables   151,468   6.7 %   141,329   6.2 %   128,666   6.0 %
Total originated loans and leases $ 1,618,734 71.0 % $ 1,573,383 69.1 % $ 1,315,802 61.3 %
Acquired impaired loans
Commercial real estate $ 157,956 7.0 % $ 166,712 7.3 % $ 201,689 9.4 %
Residential real estate 139,858 6.1 % 144,562 6.4 % 169,676 7.9 %

Construction, land development, and other land

5,156 0.2 % 5,946 0.3 % 6,116 0.3 %
Commercial and industrial 8,055 0.4 % 10,008 0.4 % 13,114 0.6 %
Installment and other   449   0.0 %   462   0.0 %   439   0.0 %
Total acquired impaired loans $ 311,474 13.7 % $ 327,690 14.4 % $ 391,034 18.2 %
Acquired non-impaired loans and leases
Commercial real estate $ 197,589 8.7 % $ 211,359 9.3 % $ 240,869 11.2 %
Residential real estate 30,785 1.3 % 32,085 1.4 % 39,791 1.9 %

Construction, land development, and other land

1,822 0.1 % 1,845 0.1 % 9,733 0.6 %
Commercial and industrial 89,985 3.9 % 94,731 4.1 % 111,931 5.2 %
Installment and other 36 0.0 % 42 0.0 % 365 0.0 %
Leasing financing receivables   29,993   1.3 %   36,357   1.6 %   34,009   1.6 %

Total acquired non-impaired loans and leases

$ 350,210   15.3 % $ 376,419   16.5 % $ 436,698   20.5 %
Total loans and leases $ 2,280,418   100.0 % $ 2,277,492   100.0 % $ 2,143,534   100.0 %
Allowance for loan and lease losses   (17,640 )   (16,706 )   (11,817 )

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

$ 2,262,778 $ 2,260,786 $ 2,131,717
 

ASSET QUALITY

Non-Performing Assets

The following table sets forth the amounts of non-performing loans and
leases, non-performing assets, and other real estate owned at the dates
indicated:

         
March 31, December 31, September 30, June 30, March 31,
(dollars in thousands) 2018 2017 2017 2017 2017
Non-accrual loans and leases $ 23,626 $ 15,763 $ 15,121 $ 15,296 $ 7,843
Past due loans and leases 90 days or more

and still accruing interest

Accruing troubled debt restructured loans   1,037   1,061   1,631   981   1,004
Total non-performing loans and leases 24,663 16,824 16,752 16,277 8,847
Other real estate owned   10,466   10,626   13,859   12,684   13,173
Total non-performing assets $ 35,129 $ 27,450 $ 30,611 $ 28,961 $ 22,020
Total non-performing loans and leases as a

percentage of total loans and leases

1.08 % 0.74 % 0.76 % 0.76 % 0.41 %
Total non-performing assets as a percentage

of total assets

1.01 % 0.82 % 0.93 % 0.86 % 0.67 %
Allowance for loan and lease losses as a

percentage of non-performing loans and

leases

71.52 % 99.30 % 95.39 % 85.82 % 133.57 %

Variances in non-performing assets:

  • Non-performing loans and leases were $24.7 million at March 31, 2018,
    an increase of $7.8 million from $16.8 million at December 31, 2017,
    driven mainly by one downgraded commercial loan relationship and one
    downgraded Small Business Administration ("SBA") loan, of which
    approximately $3.3 million is government guaranteed; and
  • Other real estate owned was $10.5 million at March 31, 2018, a
    decrease of $160,000 from $10.6 million at December 31, 2017.

Non-performing assets consisted of $6.3 million of government guaranteed
loans at March 31, 2018.

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
March 31,   December 31,   September 30,   June 30,   March 31,
(dollars in thousands) 2018 2017 2017 2017 2017
Allowance for loan and lease losses,

beginning of period

$ 16,706 $ 15,980 $ 13,969 $ 11,817 $ 10,923
Provision for loan and lease losses 5,115 3,347 3,900 3,515 1,891
Net charge-offs of loans   (4,181 )   (2,621 )   (1,889 )   (1,363 )   (997 )
Allowance for loan and lease losses,

end of period

$ 17,640 $ 16,706 $ 15,980 $ 13,969 $ 11,817
 
Allowance for loan and lease losses to

period end total loans held for

investment

0.77 % 0.73 % 0.72 % 0.65 % 0.55 %
Net charge-offs (annualized) to average

loans outstanding during the period

0.75 % 0.46 % 0.34 % 0.26 % 0.19 %
Provision for loan and lease losses to

net charge-offs during the period

1.22 x 1.28 x 2.06 x 2.58 x 1.90 x
 

The allowance for loan and lease losses as a percentage of total loans
and leases held for investment increased from 0.73% at December 31, 2017
to 0.77% at March 31, 2018.

Net Charge-Offs

Net charge-offs during the first quarter of 2018 were $4.2 million, or
0.75% of average loans and leases, on an annualized basis, an increase
of $1.6 million compared to $2.6 million, or 0.46% of average loans,
during the fourth quarter of 2017, and 0.19% for the first quarter of
2017. The increase was primarily due to a charge-off related to one
commercial loan relationship that was downgraded to non-accrual status
during the first quarter.

Net charge-offs for the first quarter of 2018 included $1.9 million in
the unguaranteed portion an SBA loans and $2.0 million for commercial
banking while net charge-offs for the fourth quarter of 2017 included
$2.1 million in the unguaranteed portion of SBA loans and $84,000 for
commercial banking.

Deposits and Other Liabilities

The following table presents the composition of deposits at the dates
indicated:

  March 31,     December 31,     September 30,     June 30,     March 31,
(dollars in thousands) 2018 2017 2017 2017 2017
Non-interest bearing demand deposits $ 749,892 $ 760,887 $ 753,662 $ 781,636 $ 732,267
Interest bearing checking accounts 196,802 186,611 187,232 182,351 192,317
Money market demand accounts 382,282 349,862 418,006 353,304 393,372
Other savings 439,277 437,212 435,536 445,220 446,847
Time deposits (below $100,000) 384,289 368,549 377,929 395,385 407,471
Time deposits ($100,000 and above)   372,005   340,208   348,564   382,702   403,565
Total deposits $ 2,524,547 $ 2,443,329 $ 2,520,929 $ 2,540,598 $ 2,575,839
 

Total deposits were $2.5 billion at March 31, 2018, an increase of $81.2
million compared to the previous quarter and a decrease of $51.3 million
compared to March 31, 2017.

The increase in the current quarter was primarily due to:

  • An increase in time deposits of $47.5 million, from $708.8 million at
    December 31, 2017 to $756.3 million at March 31, 2018, primarily
    driven by promotional campaigns implemented for time deposits; and
  • An increase in money market demand deposits of $32.4 million, from
    $349.9 million at December 31, 2017 to $382.3 million at March 31,
    2018.

Partially offset by:

  • A decrease in non-interest bearing demand deposits of $11.0 million,
    from $760.9 million at December 31, 2017 to $749.9 million at
    March 31, 2018.

Total borrowings and other liabilities were $474.9 million at March 31,
2018, an increase of $10.7 million from $464.2 million at December 31,
2017.

The increase was primarily due to an increase in Federal Home Loan Bank
advances of $18.5 million, from $361.5 million at December 31, 2017 to
$380.0 million at March 31, 2018, primarily due to the Bank's ongoing
funding needs. The increase was partially offset by a decrease in
accrued expenses and other liabilities of $4.9 million, from $42.6
million at December 31, 2017 to $37.7 million at March 31, 2018,
primarily due to loan purchases not yet settled of $9.8 million during
the fourth quarter of 2017.

Stockholders' Equity

Total stockholders' equity was $462.9 million at March 31, 2018, an
increase of $4.4 million from $458.6 million at December 31, 2017, and
an increase of $70.9 million from $389.7 million at March 31, 2017.

The following table presents the actual regulatory capital dollar
amounts and ratios of the Company and Byline Bank as of March 31, 2018:

     

Actual

  Minimum Capital

Required

Required for the Bank

to be Considered

Well Capitalized

March 31, 2018   Amount     Ratio   Amount     Ratio Amount     Ratio
Total capital to risk weighted assets:          
Company $ 415,805 16.05 % $ 207,254 8.00 % N/A N/A
Bank 372,267 14.34 % 207,608 8.00 % $ 259,510 10.00 %
Tier 1 capital to risk weighted assets:
Company $ 396,406 15.30 % $ 155,440 6.00 % N/A N/A
Bank 352,868 13.60 % 155,706 6.00 % $ 207,608 8.00 %
Common Equity Tier 1 (CET1) to

risk weighted assets:

Company $ 349,468 13.49 % $ 116,580 4.50 % N/A N/A
Bank 352,868 13.60 % 116,780 4.50 % $ 168,682 6.50 %
Tier 1 capital to average assets:
Company $ 396,406 12.14 % $ 130,626 4.00 % N/A N/A
Bank 352,868 10.79 % 130,845 4.00 % $ 163,557 5.00 %
 

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

Conference Call, Webcast and Slide Presentation

The Company will host a conference call and webcast at 9:00 a.m. Central
Time (10:00 a.m. Eastern Time) on Friday, April 27, 2018 to discuss its
quarterly financial results. Analysts and investors may participate in
the question-and-answer session. The call can be accessed via telephone
at (888) 317-6016. A recorded replay can be accessed through May 11,
2018 by dialing (877) 344-7529; passcode: 10118917.

A slide presentation relating to the first quarter 2018 results will be
accessible prior to the scheduled conference call. The slide
presentation and webcast of the conference call can be accessed on the News
and Events
page of the Company's investor relations website at www.bylinebancorp.com.

About Byline Bancorp, Inc.

Headquartered in Chicago, Byline Bancorp, Inc. is the parent company for
Byline Bank, a full service commercial bank serving small- and
medium-sized businesses, financial sponsors, and consumers. Byline Bank
has approximately $3.5 billion in assets and operates more than 50 full
service branch locations throughout the Chicago and Milwaukee
metropolitan areas. Byline Bank offers a broad range of commercial and
retail banking products and services including small ticket equipment
leasing solutions and is one of the top 10 Small Business Administration
lenders in the United States.

Non-GAAP Financial Measures

This release contains certain financial information determined by
methods other than in accordance with accounting principles generally
accepted in the United States of America ("GAAP"). These measures
include adjusted net income, non-interest income to total revenues,
pre-tax pre-provision return on average assets, tangible book value per
share, tangible common equity to tangible assets, and net interest
margin excluding loan accretion. Management believes that these non-GAAP
financial measures provide useful information to management and
investors that is supplementary to the Company's financial condition,
results of operations and cash flows computed in accordance with GAAP;
however, management acknowledges that our non-GAAP financial measures
have a number of limitations. As such, these disclosures should not be
viewed as a substitute for results determined in accordance with GAAP
financial measures that we and other companies use. Management also uses
these measures for peer comparison. See "Reconciliation of Non-GAAP
Financial Measures" in the financial schedules included in this press
release for a reconciliation of the non-GAAP financial measures to the
comparable GAAP financial measures.

Adjusted net income and earnings per share exclude certain significant
items, which include dividends on preferred shares, incremental income
tax benefit related to Illinois corporate income tax rate increase,
incremental income tax expense or benefit related to federal corporate
income tax reduction, impairment charges on assets held for sale, and
merger related expense, adjusted for applicable income tax. Management
believes the significant items are not indicative of or useful to
measure the Company's operating performance on an ongoing basis.

Non-interest income to total revenues is non-interest income divided by
net interest income plus non-interest income. Management believes that
it is standard practice in the industry to present non-interest income
as a percentage of total revenue. Accordingly, management believes
providing these measures may be useful for peer comparison.

Pre-tax pre-provision income is pre-tax income plus the provision for
loan and lease losses. Management believes this metric is important due
to the tax benefit resulting from the reversal of the deferred tax asset
valuation allowance, the decrease in the federal corporate income tax
rate, and the increase in the Illinois state corporate income tax rate.

Pre-tax pre-provision return on average assets is pre-tax income plus
the provision for loan and lease losses, divided by average assets.
Management believes this metric is important due to the change in tax
expense or benefit resulting from the decrease in the federal corporate
income tax rate and the increase in the Illinois state income tax rate.
The ratio demonstrates profitability excluding the tax provision or
benefit and excludes the provision for loan and lease losses.

Tangible common equity is defined as total stockholders' equity reduced
by preferred stock and goodwill and other intangible assets. Management
does not consider servicing assets as an intangible asset for purposes
of this calculation.

Tangible assets is defined as total assets reduced by goodwill and other
intangible assets. Management does not consider servicing assets as an
intangible asset for purposes of this calculation.

Tangible book value per share is calculated as tangible common equity,
which is stockholders' equity reduced by preferred stock and goodwill
and other intangible assets, divided by total shares of common stock
outstanding. Management believes this metric is important due to the
relative changes in the book value per share exclusive of changes in
intangible assets.

Tangible common equity to tangible assets is calculated as tangible
common equity divided by tangible assets, which is total assets reduced
by goodwill and other intangible assets. Management believes this
measure is important to investors and analysts interested in relative
changes in the ratio of total stockholders' equity to total assets, each
exclusive of changes in intangible assets.

Net interest margin excluding loan accretion is calculated as reported
net interest margin less the effect of accretion income net of
contractual interest collected on acquired loans. Management believes
that this metric is important as it illustrates the impact of net
accretion income from acquired loans on the net interest margin.

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 and its business. 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 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.
Forward-looking statements speak only as of the date they are made, and
we assume no obligation to update any of these statements in light of
new information, future events or otherwise unless required under the
federal securities laws.

 
BYLINE BANCORP, INC. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION (unaudited)

         
March 31, December 31, September 30, June 30, March 31,
(dollars in thousands) 2018 2017 2017 2017 2017
ASSETS
Cash and due from banks $ 17,396 $ 19,404 $ 16,193 $ 17,740 $ 15,541
Interest bearing deposits with other banks   110,645   38,945   46,043   62,081   67,726
Cash and cash equivalents 128,041 58,349 62,236 79,821 83,267
Securities available-for-sale, at fair value 626,057 583,236 584,684 591,933 590,507
Securities held-to-maturity, at amortized cost 112,266 117,163 121,453 127,397 132,897
Restricted stock, at cost 17,177 16,343 10,628 11,978 9,503
Loans held for sale 8,219 5,212 2,087 6,835 23,492
Loans and leases:
Loans and leases 2,280,418 2,277,492 2,216,499 2,149,390 2,143,534
Allowance for loan and lease losses   (17,640 )   (16,706 )   (15,980 )   (13,969 )   (11,817 )
Net loans and leases 2,262,778 2,260,786 2,200,519 2,135,421 2,131,717
Servicing assets, at fair value 21,615 21,400 21,669 21,424 21,223
Accrued interest receivable 6,971 7,670 7,183 6,961 7,498
Premises and equipment, net 94,014 95,224 96,334 98,891 99,563
Assets held for sale 9,030 9,779 12,938 13,666 13,666
Other real estate owned, net 10,466 10,626 13,859 12,684 13,173
Goodwill 54,562 54,562 51,975 51,975 51,975
Other intangible assets, net 15,991 16,756 17,522 18,290 19,058
Bank-owned life insurance 5,838 5,718 5,680 5,643 6,676
Deferred tax assets, net 47,371 47,376 60,350 58,784 62,925
Due from broker 82,699
Due from counterparty 19,987 39,824 21,084 19,257
Other assets   21,989   16,106   15,241   16,463   17,573
Total assets $ 3,462,372 $ 3,366,130 $ 3,305,442 $ 3,360,122 $ 3,284,713
LIABILITIES AND STOCKHOLDERS' EQUITY
LIABILITIES
Non-interest bearing demand deposits $ 749,892 $ 760,887 $ 753,662 $ 781,636 $ 732,267
Interest bearing deposits:
NOW, savings accounts, and money market accounts 1,018,361 973,685 1,040,774 980,875 1,032,536
Time deposits   756,294   708,757   726,493   778,087   811,036
Total deposits 2,524,547 2,443,329 2,520,929 2,540,598 2,575,839
Accrued interest payable 1,612 1,306 1,184 1,562 1,893
Line of credit 16,150 18,150
Federal Home Loan Bank advances 380,000 361,506 234,559 219,611 209,663
Securities sold under agreements to repurchase 27,815 31,187 30,807 32,429 31,940
Junior subordinated debentures issued to capital trusts, net 27,800 27,647 27,482 27,309 27,130
Accrued expenses and other liabilities   37,662   42,577   30,948   74,732   30,415
Total liabilities 2,999,436 2,907,552 2,845,909 2,912,391 2,895,030
STOCKHOLDERS' EQUITY
Preferred stock 10,438 10,438 10,438 10,438 25,441
Common stock 293 292 292 292
Additional paid-in capital 392,932 391,586 391,040 390,660 313,838
Retained earnings 68,687 61,349 62,311 52,753 57,304
Accumulated other comprehensive loss, net of tax   (9,414 )   (5,087 )   (4,548 )   (6,412 )   (6,900 )
Total stockholders' equity   462,936   458,578   459,533   447,731   389,683
Total liabilities and stockholders' equity $ 3,462,372 $ 3,366,130 $ 3,305,442 $ 3,360,122 $ 3,284,713
 
 
BYLINE BANCORP, INC. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF OPERATIONS (unaudited)

 
Three Months Ended
(dollars in thousands, except share and per share data)

March 31,
2018

 

December 31,
2017

 

September 30,
2017

 

June 30,
2017

 

March 31,
2017

INTEREST AND DIVIDEND INCOME
Interest and fees on loans and leases $ 33,654 $ 31,896 $ 30,933 $ 29,181 $ 28,396
Interest on taxable securities 4,055 3,679 3,720 3,703 3,790
Interest on tax-exempt securities 174 176 174 151 133
Other interest and dividend income   259   205   217   280   169
Total interest and dividend income 38,142 35,956 35,044 33,315 32,488
INTEREST EXPENSE
Deposits 2,498 2,218 2,112 1,923 1,483
Federal Home Loan Bank advances 1,358 1,009 850 772 660
Subordinated debentures and other borrowings   591   578   670   809   807
Total interest expense   4,447   3,805   3,632   3,504   2,950
Net interest income 33,695 32,151 31,412 29,811 29,538
PROVISION FOR LOAN AND LEASE LOSSES   5,115   3,347   3,900   3,515   1,891
Net interest income after provision for

loan and lease losses

28,580 28,804 27,512 26,296 27,647
NON-INTEREST INCOME
Fees and service charges on deposits 1,312 1,304 1,418 1,348 1,219
Net servicing fees 563 704 959 1,076 919
ATM and interchange fees 1,218 1,498 1,495 1,499 1,348
Net gains on sales of securities available-for-

sale

8
Net gains on sales of loans 7,476 9,036 7,499 8,445 8,082
Other non-interest income   859   97   547   825   732
Total non-interest income 11,428 12,639 11,918 13,193 12,308
NON-INTEREST EXPENSE
Salaries and employee benefits 18,278 17,118 16,323 17,226 16,602
Occupancy expense, net 3,755 3,553 3,301 3,485 3,739
Equipment expense 603 663 630 616 563
Loan and lease related expenses 1,400 1,116 891 801 877
Legal, audit and other professional fees 1,851 2,658 1,608 1,090 1,671
Data processing 2,301 2,284 2,399 2,447 2,409
Net (gain) loss recognized on other real estate

owned and other related expenses

(1 ) (430 ) 565 141 (570 )
Regulatory assessments 241 299 326 384 184
Other intangible assets amortization expense 767 767 769 769 769
Advertising and promotions 249 232 196 318 289
Telecommunications 418 428 351 396 418
Other non-interest expense   2,057   1,670   3,706   1,576   1,900
Total non-interest expense   31,919   30,358   31,065   29,249   28,851
INCOME BEFORE PROVISION FOR INCOME

TAXES

8,089 11,085 8,365 10,240 11,104
PROVISION (BENEFIT) FOR INCOME TAXES   1,321   11,851   (1,390 )   4,094   4,544
NET INCOME (LOSS) 6,768 (766 ) 9,755 6,146 6,560
Dividends on preferred shares   193   196   195   10,697   189
INCOME AVAILABLE (LOSS

ATTRIBUTABLE) TO COMMON

STOCKHOLDERS

$ 6,575 $ (962 ) $ 9,560 $ (4,551 ) $ 6,371
EARNINGS (LOSS) PER COMMON SHARE
Basic $ 0.22 $ (0.03 ) $ 0.33 $ (0.18 ) $ 0.26
Diluted $ 0.22 $ (0.03 ) $ 0.32 $ (0.18 ) $ 0.25
Weighted average common shares

outstanding for basic earnings (loss) per

common share

29,291,179 29,246,900 29,246,900 24,667,587 24,616,706
Diluted weighted average common shares

outstanding for diluted earnings (loss) per

common share

29,913,633 29,246,900 29,752,331 24,667,587 25,078,427
 
 
BYLINE BANCORP, INC. AND SUBSIDIARIES

SELECTED FINANCIAL DATA (unaudited)

 
As of or For the Three Months Ended
(dollars in thousands, except share and per share data)

March 31,
2018

 

December 31,
2017

 

September 30,
2017

 

June 30,
2017

 

March 31,
2017

Summary of Operations
Net interest income $ 33,695 $ 32,151 $ 31,412 $ 29,811 $ 29,538
Provision for loan and lease losses 5,115 3,347 3,900 3,515 1,891
Non-interest income 11,428 12,639 11,918 13,193 12,308
Non-interest expense   31,919   30,358   31,065   29,249   28,851
Income before provision for income taxes 8,089 11,085 8,365 10,240 11,104
Provision (benefit) for income taxes   1,321   11,851   (1,390 )   4,094   4,544
Net income (loss) 6,768 (766 ) 9,755 6,146 6,560
Dividends on preferred shares   193   196   195   10,697   189
Net income available (loss attributable) to

common stockholders

$ 6,575 $ (962 ) $ 9,560 $ (4,551 ) $ 6,371
 
Earnings per Common Share
Basic earnings (loss) per common share $ 0.22 $ (0.03 ) $ 0.33 $ (0.18 ) $ 0.26
Diluted earnings (loss) per common share $ 0.22 $ (0.03 ) $ 0.32 $ (0.18 ) $ 0.25
Weighted average common shares outstanding

(basic)

29,291,179 29,246,900 29,246,900 24,667,587 24,616,706
Weighted average common shares outstanding

(diluted)

29,913,633 29,246,900 29,752,331 24,667,587 25,078,427
Common shares outstanding 29,404,048 29,317,298 29,305,400 29,246,900 24,616,706
 
Key Ratios (annualized where applicable)
Net interest margin 4.45 % 4.26 % 4.18 % 4.02 % 4.00 %
Cost of deposits 0.41 % 0.35 % 0.33 % 0.30 % 0.24 %
Efficiency ratio(1) 69.04 % 66.06 % 69.92 % 66.23 % 67.11 %
Non-interest expense to average assets 3.85 % 3.64 % 3.73 % 3.57 % 3.53 %
Return (loss) on average stockholders' equity 5.97 % (0.66 )% 8.44 % 6.21 % 6.83 %
Return (loss) on average assets 0.82 % (0.09 )% 1.17 % 0.75 % 0.80 %
Non-interest income to total revenues(2) 25.33 % 28.22 % 27.51 % 30.68 % 29.41 %
Pre-tax pre-provision return on average assets(2) 1.59 % 1.73 % 1.47 % 1.68 % 1.59 %
Non-interest bearing deposits to total deposits 29.70 % 31.14 % 29.90 % 30.77 % 28.43 %
Deposits per branch $ 45,081 $ 43,631 $ 44,227 $ 44,572 $ 45,190
Loans and leases held for sale and loans and lease

held for investment to total deposits

90.66 % 93.43 % 88.01 % 84.87 % 84.13 %
Deposits to total liabilities 84.17 % 84.03 % 88.58 % 87.23 % 88.97 %
Tangible book value per common share(2) $ 12.99 $ 12.85 $ 12.95 $ 12.55 $ 11.91
 
Asset Quality Ratios
Non-performing loans and leases to total loan and

leases held for investment, net before ALLL

1.08 % 0.74 % 0.76 % 0.76 % 0.41 %
ALLL to total loans and leases held for investment,

net before ALLL

0.77 % 0.73 % 0.72 % 0.65 % 0.55 %
Net charge-offs to average total loans and leases

held for investment, net before ALLL

0.75 % 0.46 % 0.34 % 0.26 % 0.19 %
Acquisition accounting adjustments(3) $ 28,058 $ 31,693 $ 34,249 $ 37,713 $ 41,024
 
Capital Ratios
Common equity to assets 13.07 % 13.31 % 13.59 % 13.01 % 11.09 %
Tangible common equity to tangible assets(2) 11.26 % 11.44 % 11.73 % 11.16 % 9.12 %
Leverage ratio 12.14 % 12.25 % 11.95 % 11.73 % 9.59 %
Common equity tier 1 capital ratio 13.49 % 13.77 % 13.93 % 13.61 % 10.85 %
Tier 1 capital ratio 15.30 % 15.27 % 15.37 % 15.06 % 12.94 %
Total capital ratio 16.05 % 15.98 % 16.08 % 15.68 % 13.49 %
      (1)     Represents non-interest expense less amortization of intangible
assets divided by net interest income and non-interest income.
(2) Represents a non-GAAP financial measure. See Reconciliation of
non-GAAP Financial Measures" for a reconciliation of our non-GAAP
measures to the most directly comparable GAAP financial measure.
(3) Represents the remaining unamortized premium or unaccreted discount
as a result of applying the fair value adjustment at the time of the
business combination on acquired loans.
 
BYLINE BANCORP, INC. AND SUBSIDIARIES

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

 
For the Three Months Ended March 31,
2018   2017
(dollars in thousands) Average

Balance(5)

  Interest

Inc / Exp

    Average

Yield /

Rate

Average

Balance(5)

  Interest

Inc / Exp

    Average

Yield /

Rate

ASSETS    
Cash and cash equivalents $ 38,490 $ 80 0.85 % $ 35,864 $ 48 0.54 %
Loans and leases(1) 2,275,274 33,654 6.00 % 2,194,984 28,396 5.25 %
Securities available-for-sale 628,879 3,623 2.34 % 623,144 3,210 2.09 %
Securities held-to-maturity 101,834 611 2.43 % 122,134 701 2.33 %
Tax-exempt securities(2)   27,480   174 2.57 %   18,436   133 2.93 %
Total interest-earning assets $ 3,071,957 $ 38,142 5.04 % $ 2,994,562 $ 32,488 4.40 %
Allowance for loan and lease losses (17,360 ) (11,160 )
All other assets   307,474   331,693
TOTAL ASSETS $ 3,362,071 $ 3,315,095
LIABILITIES AND STOCKHOLDERS'

EQUITY

Deposits
Interest checking $ 186,686 $ 38 0.08 % $ 181,903 $ 27 0.06 %
Money market accounts 345,545 370 0.43 % 367,273 212 0.23 %
Savings 436,935 76 0.07 % 446,891 79 0.07 %
Time deposits   733,753   2,014 1.11 %   790,566   1,165 0.60 %
Total interest-bearing

deposits

1,702,919 2,498 0.59 % 1,786,633 1,483 0.34 %
Federal Home Loan Bank advances 363,540 1,358 1.52 % 301,375 660 0.89 %
Other borrowed funds   56,471   591 4.25 %   69,841   807 4.69 %
Total borrowings   420,011   1,949 1.88 %   371,216   1,467 1.60 %
Total interest-bearing liabilities $ 2,122,930 $ 4,447 0.85 % $ 2,157,849 $ 2,950 0.55 %
Non-interest bearing demand deposits 743,827 716,162
Other liabilities 35,779 51,443
Total stockholders' equity   459,535   389,641
TOTAL LIABILITIES AND

STOCKHOLDERS' EQUITY

$ 3,362,071 $ 3,315,095
Net interest spread(3)   4.19 %   3.85 %
Net interest income $ 33,695 $ 29,538
Net interest margin(4)   4.45 %   4.00 %
 
Net loan accretion impact on margin $ 2,336   0.31 % $ 1,710   0.23 %
Net interest margin excluding loan

accretion(6)

  4.14 %   3.77 %
 
      (1)     Loan and lease balances are net of deferred origination fees and
costs and initial indirect costs. Non-accrual loans and leases are
included in total loan and lease balances.
(2) Interest income and rates exclude the effects of a tax equivalent
adjustment to adjust tax exempt investment income on tax exempt
investment securities to a fully taxable basis due to immateriality.
(3) Represents the average rate earned on interest-earning assets minus
the average rate paid on interest-bearing liabilities.
(4) Represents net interest income (annualized) divided by total average
earning assets.
(5) Average balances are average daily balances.
(6) Represents a non-GAAP financial measure. See "Reconciliation of
non-GAAP Financial Measures" for a reconciliation of our non-GAAP
measures to the most directly comparable GAAP financial measure.
 
 
BYLINE BANCORP, INC. AND SUBSIDIARIES

RECONCILIATION OF NON-GAAP FINANCIAL MEASURES (unaudited)

 
As of or For the Three Months Ended

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

March 31,
2018

 

December 31,
2017

 

September 30,
2017

 

June 30,
2017

 

March 31,
2017

Net interest margin:
Reported net interest margin 4.45 % 4.26 % 4.18 % 4.02 % 4.00 %
Effect of accretion income on

acquired loans

(0.31 )% (0.30 )% (0.29 )% (0.33 )% (0.23 )%
Net interest margin excluding

accretion

4.14 % 3.96 % 3.89 % 3.69 % 3.77 %
Total revenues:
Net interest income $ 33,695 $ 32,151 $ 31,412 $ 29,811 $ 29,538
Add: Non-interest income 11,428 12,639 11,918 13,193 12,308
Total revenues $ 45,123 $ 44,790 $ 43,330 $ 43,004 $ 41,846
Non-interest income to total

revenues:

Non-interest income $ 11,428 $ 12,639 $ 11,918 $ 13,193 $ 12,308
Total revenues 45,123 44,790 43,330 43,004 41,846
Non-interest income to total

revenues

25.33 % 28.22 % 27.51 % 30.68 % 29.41 %
Pre-tax pre-provision net income:
Pre-tax income $ 8,089 $ 11,085 $ 8,365 $ 10,240 $ 11,104
Add: Provision for loan and lease

losses

5,115 3,347 3,900 3,515 1,891
Pre-tax pre-provision net income $ 13,204 $ 14,432 $ 12,265 $ 13,755 $ 12,995
Pre-tax pre-provision return on

average assets:

Total average assets $ 3,362,071 $ 3,303,673 $ 3,307,186 $ 3,284,665 $ 3,315,095
Pre-tax pre-provision net income 13,204 14,432 12,265 13,755 12,995
Pre-tax pre-provision return on

average assets

1.59 % 1.73 % 1.47 % 1.68 % 1.59 %
Tangible common equity:
Total stockholders' equity $ 462,936 $ 458,578 $ 459,533 $ 447,731 $ 389,683
Less: Preferred stock 10,438 10,438 10,438 10,438 25,441
Less: Goodwill 54,562 54,562 51,975 51,975 51,975
Less: Core deposit intangibles and

other intangibles

15,991 16,756 17,522 18,290 19,058
Tangible common equity $ 381,945 $ 376,822 $ 379,598 $ 367,028 $ 293,209
Tangible assets:
Total assets $ 3,462,372 $ 3,366,130 $ 3,305,442 $ 3,360,122 $ 3,284,713
Less: Goodwill 54,562 54,562 51,975 51,975 51,975
Less: Core deposit intangibles and

other intangibles

15,991 16,756 17,522 18,290 19,058
Tangible assets $ 3,391,819 $ 3,294,812 $ 3,235,945 $ 3,289,857 $ 3,213,680
Tangible book value per share:
Tangible common equity $ 381,945 $ 376,822 $ 379,598 $ 367,028 $ 293,209
Shares of common stock outstanding 29,404,048 29,317,298 29,305,400 29,246,900 24,616,706
Tangible book value per share $ 12.99 $ 12.85 $ 12.95 $ 12.55 $ 11.91
Tangible common equity to

tangible assets:

Tangible common equity $ 381,945 $ 376,822 $ 379,598 $ 367,028 $ 293,209
Tangible assets 3,391,819 3,294,812 3,235,945 3,289,857 3,213,680
Tangible common equity to tangible

assets

11.26 % 11.44 % 11.73 % 11.16 % 9.12 %
 
BYLINE BANCORP, INC. AND SUBSIDIARIES

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

 
As of or For the Three Months Ended
March 31,   December 31,   September 30,   June 30,   March 31,
(dollars in thousands, per share data) 2018 2017 2017 2017 2017
Net income (loss) and earnings per share excluding significant
items
Reported Net Income (Loss) $ 6,768 $ (766 ) $ 9,755 $ 6,146 $ 6,560
Significant items:
Incremental income tax benefit of state tax

rate change

(4,790 )
Incremental income tax (benefit) expense

attributed to federal income tax reform

(724 ) 7,154
Impairment charges on assets held for sale 951
Merger related expense 123 1,272
Tax benefit on impairment charges and

merger related expenses

  (34 )   (395 )   (386 )    
Adjusted Net Income $ 6,133 $ 7,265 $ 5,530 $ 6,146 $ 6,560
Reported Diluted Earnings (Loss) per Share $ 0.22 $ (0.03 ) $ 0.32 $ (0.18 ) $ 0.25
Significant items:
Incremental income tax benefit of state tax

rate change

(0.16 )
Incremental income tax (benefit) expense

attributed to federal income tax reform

(0.02 ) 0.24
Impairment charges on assets held for sale 0.03
Merger related expense 0.01 0.04
Tax benefit on impairment charges and

merger related expenses

    (0.01 )   (0.01 )    
Adjusted Diluted Earnings (Loss) per Share $ 0.21 $ 0.24 $ 0.18 $ (0.18 ) $ 0.25

View Comments and Join the Discussion!