Market Overview

Byline Bancorp, Inc. Reports Second Quarter 2018 Financial Results

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Second Quarter 2018 Highlights

  • Completed the First Evanston Bancorp, Inc. acquisition on May 31,
    2018
  • Net income of $2.8 million, or $0.08 per diluted share
    • Adjusted net income1 of $10.6 million,
      or $0.32 per diluted share
  • Loan originations of $169.6 million and lease originations of $25.6
    million
  • Originated loans and leases grew to $1.8 billion as of June 30,
    2018, an increase of $186.0 million or 11.5% from the first quarter of
    2018, and $449.5 -million or 33.2% from second quarter of 2017
  • Total deposit base of $3.6 billion as of June 30, 2018.
    Non-interest bearing deposits to total deposits increased from 29.7%
    at March 31, 2018 to 32.7% at June 30, 2018

Byline Bancorp, Inc. (the "Company") (NYSE:BY), the parent company of
Byline Bank (the "Bank"), today reported net income of $2.8 million, or
$0.08 per diluted share, for the second quarter of 2018, compared with
net income of $6.8 million, or $0.22 per diluted share, for the first
quarter of 2018, and net income of $6.1 million, or $(0.18) per diluted
share, for the second quarter of 2017. The Company's financial results
for the second quarter of 2018 include certain costs associated with its
acquisition and integration of First Evanston Bancorp, Inc. ("First
Evanston") and its bank subsidiary First Bank & Trust, including
merger-related and core system conversion expenses. Excluding these
costs and impairment charges on assets held for sale, adjusted net
income was $10.6 million, or $0.32 per diluted share, for the second
quarter of 2018. A reconciliation of adjusted net income and adjusted
diluted earnings per share to net income and diluted earnings per share,
respectively, according to accounting principles generally accepted in
the United States of America ("GAAP") is provided in the financial
tables at the end of this release.

Alberto J. Paracchini, President and Chief Executive Officer of Byline,
commented, "Byline Bank had a solid quarter highlighted by strong loan
growth with contributions coming from our diversified commercial lending
platform. Our government guaranteed lending business contributed nicely
to both loan production and revenue for the quarter. Strong revenue
growth along with continued gains in operating leverage resulted in a
significant increase in our adjusted earnings.

During the quarter we completed the acquisition of First Evanston. This
was an important milestone for our Company and we remain focused on
ensuring a smooth transition for customers and colleagues. As part of
our integration project we had the opportunity to evaluate our
technology platform and made the decision to convert our core platform
to FIS IBS which First Evanston utilized. We believe this platform will
further enhance our product capabilities, provide for tighter
integration and allow us to operate more efficiently going forward. We
expect to see continued benefits on our financial performance as we
execute on our integration plan and fully capture all of the synergies
projected for this combination.

We continually evaluate all areas of the organization for opportunities
to increase efficiencies. During the second quarter, we consolidated six
branches and two other facilities within our network that had a minimal
impact on our customer service levels, convenience, and business
development capabilities. These consolidations resulted in approximately
$891,000, or $0.03 per diluted share, in one-time charges and will
provide an estimated $2.0 million in annual cost savings that will be
re-invested over time into our infrastructure," said Mr. Paracchini.

(1) Represents a non-GAAP financial measure. See
"Reconciliation of non-GAAP Financial Measures" for a reconciliation of
our non-GAAP measures to the most directly comparable GAAP financial
measure.

STATEMENTS OF OPERATIONS

Net Interest Income

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

  Three Months Ended     Six Months Ended
June 30,     March 31,     December 31,     September 30,     June 30, June 30,     June 30,
(dollars in thousands) 2018 2018 2017 2017 2017 2018 2017
INTEREST AND DIVIDEND INCOME
Interest and fees on loans

and leases

$ 39,627 $ 33,654 $ 31,896 $ 30,933 $ 29,181 $ 73,281 $ 57,577
Interest on taxable securities 4,572 4,055 3,679 3,720 3,703 8,627 7,493
Interest on tax-exempt

securities

229 174 176 174 151 403 284
Other interest and dividend

income

  413   259   205   217   280   672   449
Total interest and

dividend income

44,841 38,142 35,956 35,044 33,315 82,983 65,803
INTEREST EXPENSE
Deposits 3,745 2,498 2,218 2,112 1,923 6,243 3,406
Federal Home Loan Bank

advances

1,360 1,358 1,009 850 772 2,718 1,432
Subordinated debentures and

other borrowings

  680   591   578   670   809   1,271   1,616
Total interest expense   5,785   4,447   3,805   3,632   3,504   10,232   6,454
Net interest income $ 39,056 $ 33,695 $ 32,151 $ 31,412 $ 29,811 $ 72,751 $ 59,349
 

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
  June 30,           March 31,      
2018 2018
(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 $ 68,019 $ 199 1.17 % $ 38,490 $ 80 0.85 %
Loans and leases(1) 2,638,757 39,627 6.02 % 2,275,274 33,654 6.00 %
Securities available-for-sale 694,154 4,203 2.43 % 628,879 3,623 2.34 %
Securities held-to-maturity 96,414 583 2.42 % 101,834 611 2.43 %
Tax-exempt securities(2)   36,749   229 2.50 %   27,480   174 2.57 %
Total interest-earning assets $ 3,534,093 $ 44,841 5.09 % $ 3,071,957 $ 38,142 5.04 %
Allowance for loan and lease losses (18,292 ) (17,360 )
All other assets   347,383   307,474
TOTAL ASSETS $ 3,863,184 $ 3,362,071
LIABILITIES AND STOCKHOLDERS'

EQUITY

Deposits
Interest checking $ 227,760 $ 124 0.22 % $ 186,686 $ 38 0.08 %
Money market accounts 469,066 781 0.67 % 345,545 370 0.43 %
Savings 454,295 83 0.07 % 436,935 76 0.07 %
Time deposits   864,348   2,757 1.28 %   733,753   2,014 1.11 %
Total interest-bearing

deposits

2,015,469 3,745 0.75 % 1,702,919 2,498 0.59 %
Federal Home Loan Bank advances 342,825 1,360 1.59 % 363,540 1,358 1.52 %
Other borrowed funds   57,644   680 4.73 %   56,471   591 4.25 %
Total borrowings   400,469   2,040 2.04 %   420,011   1,949 1.88 %
Total interest-bearing liabilities $ 2,415,938 $ 5,785 0.96 % $ 2,122,930 $ 4,447 0.85 %
Non-interest bearing demand deposits 891,175 743,827
Other liabilities 37,524 35,779
Total stockholders' equity   518,547   459,535
TOTAL LIABILITIES AND

STOCKHOLDERS' EQUITY

$ 3,863,184 $ 3,362,071
Net interest spread(3)   4.13 %   4.19 %
Net interest income $ 39,056 $ 33,695
Net interest margin(4)   4.43 %   4.45 %
 
Net loan accretion impact on margin $ 3,604   0.41 % $ 2,336   0.31 %
Net interest margin excluding loan

accretion(6)

  4.02 %   4.14 %
     

(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.
 

The Company completed its acquisition of First Evanston on May 31, 2018.
All references to this transaction in the following narrative are
referred to as "the acquisition" or "our recent acquisition."

Net interest income for the second quarter of 2018 was $39.1 million, an
increase of $5.4 million, or 15.9%, from $33.7 million for the first
quarter of 2018.

The increase in net interest income was primarily due to:

  • An increase of $6.0 million in interest and fees on loans and leases,
    primarily due to loans acquired from the acquisition, growth from loan
    and lease originations, and an increase in interest rates on variable
    rate loans during the quarter; and
  • An increase of $572,000 in interest income on securities, primarily
    due to additional purchases and securities acquired during the quarter.

Partially offset by:

  • An increase of $1.2 million in interest expense on deposits, primarily
    due to deposits assumed as a result of the acquisition, an increase in
    time deposits and money market demand deposits driven by promotional
    campaigns during the quarter, and an increase in average rates on
    deposits; and
  • An increase of $89,000 in interest expense on subordinated debentures
    and other borrowings, partially due to junior subordinated debentures
    relating to trust preferred securities assumed as a result of the
    acquisition.

Net interest margin for the second quarter of 2018 was 4.43%, a decrease
of 2 basis points from the first quarter of 2018. Total net loan
accretion on acquired loans contributed 41 basis points to the net
interest margin for the second quarter of 2018 and 31 basis points for
the first quarter of 2018. Net interest margin excluding loan accretion
decreased 12 basis points to 4.02% during the second quarter of 2018,
compared to 4.14% for the first quarter of 2018. The net interest margin
decrease was primarily driven by increased interest-bearing deposit
rates during the quarter.

The cost of average total deposits was 0.52% for the second quarter of
2018, an increase of 11 basis points from the first quarter of 2018, due
to higher rates on interest bearing deposits and growth in average time
deposits of $130.6 million, partially offset by growth in average
non-interest bearing demand deposits of $147.3 million. While we believe
the acquisition provides a solid additional deposit base to help support
future growth, the acquired interest-bearing demand deposits have a
slightly higher overall cost than the Company's existing deposit base,
which contributed to the overall increase in the cost of average total
deposits during the second quarter.

Provision for Loan and Lease Losses

The provision for loan and lease losses was $4.0 million for the second
quarter of 2018, a decrease of $1.1 million compared to $5.1 million for
the first quarter of 2018. The second quarter provision included
allocations of $4.5 million for originated loans and leases, partially
offset by a $528,000 credit to the provision for acquired impaired
loans. The decreased provision during the second quarter of 2018 was
mainly due to recording a specific reserve on a commercial loan
relationship during the previous quarter, offset by increases to the
general reserve driven by originated loan and lease portfolio growth.

Non-interest Income

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

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

deposits

$ 1,456 $ 1,312 $ 1,304 $ 1,418 $ 1,348 $ 2,768 $ 2,567
Net servicing fees 459 563 704 959 1,076 1,022 1,995
ATM and interchange fees 1,141 1,218 1,498 1,495 1,499 2,359 2,847
Net gains on sales of securities

available-for-sale

4 4 8
Net gains on sales of loans 9,723 7,476 9,036 7,499 8,445 17,199 16,527
Wealth management and

trust income

192 192
Other non-interest income   1,527   859   97   547   825   2,386   1,557
Total non-interest income $ 14,502 $ 11,428 $ 12,639 $ 11,918 $ 13,193 $ 25,930 $ 25,501
 

Non-interest income for the second quarter of 2018 was $14.5 million, an
increase of $3.1 million compared to $11.4 million for the first quarter
of 2018.

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

  • An increase of $2.2 million in net gains on sales of loans, primarily
    due to an increase in loans sold;
  • An increase of $668,000 in other non-interest income, primarily due to
    a $985,000 increase in customer derivative products fee income
    partially offset by a net loss on sale of an asset held for sale of
    $27,000 during the second quarter of 2018; and
  • An increase of $192,000 in wealth management and trust income, a new
    business line added as a result of the acquisition.

Partially offset by:

  • A decrease of $104,000 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.

During the second quarter of 2018, the Company sold $95.0 million of
government guaranteed loans compared to $78.6 million during the first
quarter of 2018, contributing to the increase 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     Six Months Ended
June 30,     March 31,   December 31,   September 30,     June 30, June 30,     June 30,
(dollars in thousands) 2018 2018 2017 2017 2017 2018 2017
NON-INTEREST EXPENSE
Salaries and employee benefits $ 19,244 $ 18,278 $ 17,118 $ 16,323 $ 17,226 $ 37,522 $ 33,828
Occupancy expense, net 4,499 3,755 3,553 3,301 3,485 8,254 7,224
Equipment expense 558 603 663 630 616 1,161 1,179
Loan and lease related expenses 1,471 1,400 1,116 891 801 2,871 1,678
Legal, audit and other professional fees 4,418 1,851 2,658 1,608 1,090 6,269 2,761
Data processing 10,371 2,301 2,284 2,399 2,447 12,672 4,856
Net loss (gain) recognized on other real

estate owned and other related expenses

472 (1 ) (430 ) 565 141 471 (429 )
Regulatory assessments 366 241 299 326 384 607 568
Other intangible assets amortization expense 1,130 767 767 769 769 1,897 1,538
Advertising and promotions 347 249 232 196 318 596 607
Telecommunications 466 418 428 351 396 884 814
Other non-interest expense   2,428   2,057   1,670   3,706   1,576   4,485   3,476
Total non-interest expense $ 45,770 $ 31,919 $ 30,358 $ 31,065 $ 29,249 $ 77,689 $ 58,100
 

Non-interest expense for the second quarter of 2018 was $45.8 million,
an increase of $13.9 million from $31.9 million for the first quarter of
2018.

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

  • An increase of $8.1 million in data processing expense, primarily due
    to contract termination expenses relating to the Bank's anticipated
    core system conversion;
  • An increase of $2.6 million in legal, audit and other professional
    fees, primarily due to professional services incurred related to the
    acquisition;
  • An increase of $1.0 million in salaries and employee benefits,
    primarily due to additional salary and employee benefit expenses
    subsequent to the acquisition closing, partially offset by a $523,000
    decrease in payroll taxes; and
  • An increase of $744,000 in occupancy expense, primarily due to
    $738,000 of expenses associated with branch consolidations.

The Company's efficiency ratio was 83.35% for the second quarter of
2018, compared with 69.04% for the first quarter of 2018. Approximately
$9.0 million of expenses were recognized during the quarter relating to
the Bank's anticipated core system conversion, including consulting fees
and contract termination expense. Excluding merger-related expenses,
core system conversion expenses, and impairment charges on assets held
for sale, the Company's adjusted efficiency ratio was 63.48% for the
second quarter of 2018.

INCOME TAXES

The Company recorded income tax expense of $1.1 million during the
second quarter of 2018, an effective tax rate of 27.8%, compared to $1.3
million during the first quarter of 2018, a decrease of $257,000.

STATEMENTS OF FINANCIAL CONDITION

Total assets were $4.8 billion at June 30, 2018, an increase of $1.3
billion from $3.5 billion at March 31, 2018, and an increase of $1.4
billion compared to $3.4 billion at June 30, 2017.

The increase was primarily due to:

  • An increase in loans and leases of $1.1 billion, primarily due to an
    increase of $882.3 million in our acquired loan portfolio largely from
    the acquisition and an increase of $186.0 million in our originated
    loan portfolio;
  • An increase in securities of $126.1 million mainly due to the
    acquisition of the First Evanston securities portfolio, which included
    agency, municipal, and U.S. Treasury securities; and
  • An increase in goodwill of $73.0 million due to the premium value
    associated with the acquisition.

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

  June 30, 2018     March 31, 2018     December 31, 2017
(dollars in thousands) Amount   % of Total Amount   % of Total Amount   % of Total
Originated loans and leases      
Commercial real estate $ 539,529 16.1 % $ 485,324 21.3 % $ 513,622 22.5 %
Residential real estate 413,956 12.4 % 397,516 17.4 % 400,571 17.6 %
Construction, land development, and

other land

134,004 4.0 % 110,092 4.8 % 97,638 4.3 %
Commercial and industrial 556,340 16.6 % 470,689 20.6 % 416,499 18.3 %
Installment and other 4,898 0.1 % 3,645 0.2 % 3,724 0.2 %
Leasing financing receivables   156,017   4.7 %   151,468   6.7 %   141,329   6.2 %
Total originated loans and leases $ 1,804,744 53.9 % $ 1,618,734 71.0 % $ 1,573,383 69.1 %
Acquired impaired loans
Commercial real estate $ 162,621 4.9 % $ 157,956 7.0 % $ 166,712 7.3 %
Residential real estate 129,737 3.9 % 139,858 6.1 % 144,562 6.4 %
Construction, land development, and

other land

4,860 0.1 % 5,156 0.2 % 5,946 0.3 %
Commercial and industrial 15,347 0.4 % 8,055 0.4 % 10,008 0.4 %
Installment and other   521   0.0 %   449   0.0 %   462   0.0 %
Total acquired impaired loans $ 313,086 9.3 % $ 311,474 13.7 % $ 327,690 14.4 %
Acquired non-impaired loans and leases
Commercial real estate $ 532,837 15.9 % $ 197,589 8.7 % $ 211,359 9.3 %
Residential real estate 155,895 4.7 % 30,785 1.3 % 32,085 1.4 %
Construction, land development, and

other land

49,752 1.5 % 1,822 0.1 % 1,845 0.1 %
Commercial and industrial 454,133 13.6 % 89,985 3.9 % 94,731 4.1 %
Installment and other 7,387 0.2 % 36 0.0 % 42 0.0 %
Leasing financing receivables   30,858   0.9 %   29,993   1.3 %   36,357   1.6 %
Total acquired non-impaired loans

and leases

$ 1,230,862   36.8 % $ 350,210   15.3 % $ 376,419   16.5 %
Total loans and leases $ 3,348,692   100.0 % $ 2,280,418   100.0 % $ 2,277,492   100.0 %
Allowance for loan and lease losses   (19,687 )   (17,640 )   (16,706 )
Total loans and leases, net of allowance for

loan and lease losses

$ 3,329,005 $ 2,262,778 $ 2,260,786
 

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:

  June 30,   March 31,   December 31,   September 30,   June 30,
(dollars in thousands) 2018 2018 2017 2017 2017
Nonperforming assets:
Non-accrual loans and leases $ 25,742 $ 23,626 $ 15,763 $ 15,121 $ 15,296
Past due loans and leases 90 days or more

and still accruing interest

197
Accruing troubled debt restructured loans   1,238   1,037   1,061   1,631   981
Total non-performing loans and leases 27,177 24,663 16,824 16,752 16,277
Other real estate owned   6,402   10,466   10,626   13,859   12,684
Total non-performing assets $ 33,579 $ 35,129 $ 27,450 $ 30,611 $ 28,961
Total non-performing loans and leases as a

percentage of total loans and leases

0.81 % 1.08 % 0.74 % 0.76 % 0.76 %
Total non-performing assets as a percentage

of total assets

0.70 % 1.01 % 0.82 % 0.93 % 0.86 %
Allowance for loan and lease losses as a

percentage of non-performing loans and

leases

72.44 % 71.52 % 99.30 % 95.39 % 85.82 %
 
Nonperforming assets guaranteed by

U.S. government:

Non-accrual loans guaranteed $ 6,810 $ 6,266 $ 4,543 $ 3,501 $ 3,202
Past due loans 90 days or more and still

accruing interest guaranteed

152
Accruing troubled debt restructured loans

guaranteed

             
Total non-performing loans and leases

guaranteed

6,962 6,266 4,543 3,501 3,202
Other real estate owned guaranteed   298   482      
Total non-performing assets guaranteed $ 7,260 $ 6,748 $ 4,543 $ 3,501 $ 3,202
Total non-performing loans and leases

not guaranteed as a percentage of total

loans and leases

0.60 % 0.81 % 0.54 % 0.60 % 0.61 %
Total non-performing assets not guaranteed

as a percentage of total assets

0.55 % 0.82 % 0.68 % 0.82 % 0.77 %
 

Variances in non-performing assets:

  • Non-performing loans and leases were $27.2 million at June 30, 2018,
    an increase of $2.5 million from $24.7 million at March 31, 2018,
    partially consisting of government guaranteed loans; and
  • Other real estate owned was $6.4 million at June 30, 2018, a decrease
    of $4.1 million from $10.5 million at March 31, 2018, primarily due to
    sales of other real estate owned properties during the second quarter
    of 2018.

Non-performing assets consisted of $7.3 million and $6.7 million of
government guaranteed balances at June 30, 2018 and March 31, 2018,
respectively.

Allowance for Loan and Lease Losses

The following table presents the balance and activity within the
allowance for loan and lease losses for the periods indicated:

  Three Months Ended   Six Months Ended
June 30,   March 31,   December 31,   September 30,   June 30, June 30,   June 30,
(dollars in thousands) 2018 2018 2017 2017 2017 2018 2017
Allowance for loan and lease

losses, beginning of period

$ 17,640 $ 16,706 $ 15,980 $ 13,969 $ 11,817 $ 16,706 $ 10,923
Provision for loan and lease losses 3,956 5,115 3,347 3,900 3,515 9,071 5,406
Net charge-offs of loans   (1,909 )   (4,181 )   (2,621 )   (1,889 )   (1,363 )   (6,090 )   (2,360 )
Allowance for loan and lease

losses, end of period

$ 19,687 $ 17,640 $ 16,706 $ 15,980 $ 13,969 $ 19,687 $ 13,969
 
Allowance for loan and lease

losses to period end total loans

held for investment

0.59 % 0.77 % 0.73 % 0.72 % 0.65 % 0.59 % 0.65 %
Net charge-offs (annualized) to

average loans outstanding during

the period

0.29 % 0.75 % 0.46 % 0.34 % 0.26 % 0.50 % 0.22 %
Provision for loan and lease losses

to net charge-offs during the

period

2.07x 1.22x 1.28x 2.06 x 2.58 x 1.49x 2.29x
 

The allowance for loan and lease losses as a percentage of total loans
and leases held for investment decreased from 0.77% at March 31, 2018 to
0.59% at June 30, 2018, primarily due to the acquisition.

Net Charge-Offs

Net charge-offs during the second quarter of 2018 were $1.9 million, or
0.29% of average loans and leases, on an annualized basis, a decrease of
$2.3 million compared to $4.2 million, or 0.75% of average loans, during
the first quarter of 2018, and a slight increase from 0.26% for the
second quarter of 2017. The decrease 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 second quarter of 2018 included $1.7 million in
the unguaranteed portion of government guaranteed loans while net
charge-offs for the first quarter of 2018 included $1.9 million in the
unguaranteed portion of government guaranteed loans and $2.0 million for
commercial banking.

Deposits and Other Liabilities

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

  June 30,     March 31,     December 31,     September 30,     June 30,
(dollars in thousands) 2018 2018 2017 2017 2017
Non-interest bearing demand deposits $ 1,193,057 $ 749,892 $ 760,887 $ 753,662 $ 781,636
Interest bearing checking accounts 287,330 196,802 186,611 187,232 182,351
Money market demand accounts 617,108 382,282 349,862 418,006 353,304
Other savings 487,130 439,277 437,212 435,536 445,220
Time deposits (below $250,000) 879,643 665,541 627,255 643,112 680,893
Time deposits ($250,000 and above)   180,609   90,753   81,502   83,381   97,194
Total deposits $ 3,644,877 $ 2,524,547 $ 2,443,329 $ 2,520,929 $ 2,540,598
 

Total deposits were $3.6 billion at June 30, 2018, an increase of $1.1
billion compared to both the previous quarter and June 30, 2017,
primarily due to assumed deposits from the acquisition. Non-interest
bearing deposits to total deposits increased from 29.7% at March 31,
2018 to 32.7% at June 30, 2018.

The increase in the current quarter was primarily due to:

  • An increase in non-interest bearing demand deposits of $443.2 million,
    from $749.9 million at March 31, 2018 to $1.2 billion at June 30,
    2018, primarily driven by the assumption of the First Evanston
    deposits;
  • An increase in time deposits of $304.0 million, from $756.3 million at
    March 31, 2018 to $1.1 billion at June 30, 2018, primarily driven by
    the assumption of First Evanston time deposits as well continuing
    promotional campaigns; and
  • An increase in money market demand deposits of $234.8 million, from
    $382.3 million at March 31, 2018 to $617.1 million at June 30, 2018,
    primarily driven by the First Evanston deposits as well as an ongoing
    promotional campaign.

Total borrowings and other liabilities were $544.0 million at June 30,
2018, an increase of $69.1 million from $474.9 million at March 31, 2018.

The increase in the current quarter was primarily due to:

  • An increase in Federal Home Loan Bank advances of $40.0 million, from
    $380.0 million at March 31, 2018 to $420.0 million at June 30, 2018,
    primarily due to the Bank's ongoing funding needs;
  • An increase in accrued expenses and other liabilities of $22.7
    million, from $37.7 million at March 31, 2018 to $60.3 million at
    June 30, 2018, partially due to additional accrued expenses and other
    liabilities resulting from the core system conversion and acquisition
    and loan purchases of $10.0 million not yet settled during the
    quarter; and
  • An increase in junior subordinated debentures of $8.7 million, from
    $27.8 million at March 31, 2018 to $36.5 million at June 30, 2018,
    partially due to an additional contractual $10.0 million of junior
    subordinated debentures assumed as a result of the acquisition.

Partially offset by:

  • A decrease of $3.2 million in securities sold under agreements to
    repurchase, from $27.8 million at March 31, 2018 to $24.7 million at
    June 30, 2018, primarily due to net repurchases during the quarter.

Stockholders' Equity

Total stockholders' equity was $616.4 million at June 30, 2018, an
increase of $153.5 million from $462.9 million at March 31, 2018, and an
increase of $168.7 million from $447.7 million at June 30, 2017,
primarily due to a $151.1 million increase from the acquisition.

The following table presents the actual regulatory capital dollar
amounts and ratios of the Company and Byline Bank as of June 30, 2018:

  Actual     Minimum Capital

Required

  Required for the Bank

to be Considered

Well Capitalized

June 30, 2018 Amount     Ratio   Amount     Ratio Amount     Ratio
Total capital to risk weighted assets:          
Company $ 496,926 12.92 % $ 307,793 8.00 % N/A N/A
Bank 474,663 12.32 % 308,217 8.00 % $ 385,272 10.00 %
Tier 1 capital to risk weighted assets:
Company $ 475,381 12.36 % $ 230,845 6.00 % N/A N/A
Bank 453,118 11.76 % 231,163 6.00 % $ 308,217 8.00 %
Common Equity Tier 1 (CET1) to

risk weighted assets:

Company $ 418,443 10.88 % $ 173,134 4.50 % N/A N/A
Bank 453,118 11.76 % 173,372 4.50 % $ 250,427 6.50 %
Tier 1 capital to average assets:
Company $ 475,381 10.57 % $ 179,841 4.00 % N/A N/A
Bank 453,118 10.07 % 180,066 4.00 % $ 225,083 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, July 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 August 10,
2018 by dialing (877) 344-7529; passcode: 10121933.

A slide presentation relating to the second 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 $4.8 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, adjusted diluted earnings per share,
adjusted efficiency ratio, adjusted non-interest expense to average
assets, non-interest income to total revenues, adjusted return on
average stockholders' equity, adjusted return on average assets, pre-tax
pre-provision return on average assets, adjusted pre-tax pre-provision
return on average assets, tangible book value per 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 adjusted diluted earnings per share exclude
certain significant items, which include incremental income tax benefit
related to Illinois corporate income tax rate increases, incremental
income tax expense or benefit related to federal corporate income tax
reductions, impairment charges on assets held for sale, merger related
expenses, and core system conversion expenses 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.

Adjusted non-interest expense is non-interest expense excluding certain
significant items, which include impairment charges on assets held for
sale, merger-related expenses, and core system conversion expenses.

Adjusted efficiency ratio is adjusted non-interest expense less
amortization of intangible assets divided by net interest income and
non-interest income. Management believes the metric is an important
measure of the Company's operating performance on an ongoing basis.

Adjusted non-interest expense to average assets is adjusted non-interest
expense divided by average assets. Management believes the metric is an
important measure of the Company's operating performance on an ongoing
basis.

Adjusted return on average stockholders' equity is adjusted net income
divided by average stockholders' equity. Management believes the metric
is an important measure of the Company's operating performance on an
ongoing basis.

Adjusted return on average assets is adjusted net income divided by
average assets. Management believes the metric is an important measure
of 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 recent decrease in the federal
corporate income tax rate and the recent 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. Adjusted pre-tax pre-provision return on average assets excludes
certain significant items, which include impairment charges on assets
held for sale, merger related expenses, and core system conversion
expenses.

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
reliable, accurate or complete based on current 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)

         
June 30, March 31, December 31, September 30, June 30,
(dollars in thousands) 2018 2018 2017 2017 2017
ASSETS
Cash and due from banks $ 25,299 $ 17,396 $ 19,404 $ 16,193 $ 17,740
Interest bearing deposits with other banks   127,417   110,645   38,945   46,043   62,081
Cash and cash equivalents 152,716 128,041 58,349 62,236 79,821
Securities available-for-sale, at fair value 757,825 626,057 583,236 584,684 591,933
Securities held-to-maturity, at amortized cost 106,613 112,266 117,163 121,453 127,397
Restricted stock, at cost 18,977 17,177 16,343 10,628 11,978
Loans held for sale 5,822 8,219 5,212 2,087 6,835
Loans and leases:
Loans and leases 3,348,692 2,280,418 2,277,492 2,216,499 2,149,390
Allowance for loan and lease losses   (19,687 )   (17,640 )   (16,706 )   (15,980 )   (13,969 )
Net loans and leases 3,329,005 2,262,778 2,260,786 2,200,519 2,135,421
Servicing assets, at fair value 21,587 21,615 21,400 21,669 21,424
Accrued interest receivable 10,670 6,971 7,670 7,183 6,961
Premises and equipment, net 107,300 94,014 95,224 96,334 98,891
Assets held for sale 11,428 9,030 9,779 12,938 13,666
Other real estate owned, net 6,402 10,466 10,626 13,859 12,684
Goodwill 127,536 54,562 54,562 51,975 51,975
Other intangible assets, net 37,139 15,991 16,756 17,522 18,290
Bank-owned life insurance 5,886 5,838 5,718 5,680 5,643
Deferred tax assets, net 48,936 47,371 47,376 60,350 58,784
Due from broker 82,699
Due from counterparty 25,569 19,987 39,824 21,084 19,257
Other assets   31,869   21,989   16,106   15,241   16,463
Total assets $ 4,805,280 $ 3,462,372 $ 3,366,130 $ 3,305,442 $ 3,360,122
LIABILITIES AND STOCKHOLDERS' EQUITY
LIABILITIES
Non-interest bearing demand deposits $ 1,193,057 $ 749,892 $ 760,887 $ 753,662 $ 781,636
Interest bearing deposits:
NOW, savings accounts, and money market accounts 1,391,568 1,018,361 973,685 1,040,774 980,875
Time deposits   1,060,252   756,294   708,757   726,493   778,087
Total deposits 3,644,877 2,524,547 2,443,329 2,520,929 2,540,598
Accrued interest payable 2,562 1,612 1,306 1,184 1,562
Line of credit 16,150
Federal Home Loan Bank advances 420,000 380,000 361,506 234,559 219,611
Securities sold under agreements to repurchase 24,653 27,815 31,187 30,807 32,429
Junior subordinated debentures issued to capital trusts, net 36,452 27,800 27,647 27,482 27,309
Accrued expenses and other liabilities   60,330   37,662   42,577   30,948   74,732
Total liabilities 4,188,874 2,999,436 2,907,552 2,845,909 2,912,391
STOCKHOLDERS' EQUITY
Preferred stock 10,438 10,438 10,438 10,438 10,438
Common stock 360 293 292 292 292
Additional paid-in capital 544,686 392,932 391,586 391,040 390,660
Retained earnings 71,257 68,687 61,349 62,311 52,753
Accumulated other comprehensive loss, net of tax   (10,335 )   (9,414 )   (5,087 )   (4,548 )   (6,412 )
Total stockholders' equity   616,406   462,936   458,578   459,533   447,731
Total liabilities and stockholders' equity $ 4,805,280 $ 3,462,372 $ 3,366,130 $ 3,305,442 $ 3,360,122
 

BYLINE BANCORP, INC. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF OPERATIONS (unaudited)

   
Three Months Ended Six Months Ended
June 30,     March 31,   December 31,   September 30,   June 30, June 30,     June 30,
(dollars in thousands, except share and per share data) 2018 2018 2017 2017 2017 2018 2017
INTEREST AND DIVIDEND INCOME
Interest and fees on loans and leases $ 39,627 $ 33,654 $ 31,896 $ 30,933 $ 29,181 $ 73,281 $ 57,577
Interest on taxable securities 4,572 4,055 3,679 3,720 3,703 8,627 7,493
Interest on tax-exempt securities 229 174 176 174 151 403 284
Other interest and dividend income   413   259   205   217   280   672   449
Total interest and dividend income 44,841 38,142 35,956 35,044 33,315 82,983 65,803
INTEREST EXPENSE
Deposits 3,745 2,498 2,218 2,112 1,923 6,243 3,406
Federal Home Loan Bank advances 1,360 1,358 1,009 850 772 2,718 1,432
Subordinated debentures and other borrowings   680   591   578   670   809   1,271   1,616
Total interest expense   5,785   4,447   3,805   3,632   3,504   10,232   6,454
Net interest income 39,056 33,695 32,151 31,412 29,811 72,751 59,349
PROVISION FOR LOAN AND LEASE LOSSES   3,956   5,115   3,347   3,900   3,515   9,071   5,406
Net interest income after provision for

loan and lease losses

35,100 28,580 28,804 27,512 26,296 63,680 53,943
NON-INTEREST INCOME
Fees and service charges on deposits 1,456 1,312 1,304 1,418 1,348 2,768 2,567
Net servicing fees 459 563 704 959 1,076 1,022 1,995
ATM and interchange fees 1,141 1,218 1,498 1,495 1,499 2,359 2,847
Net gains on sales of securities available-for-

sale

4 4 8
Net gains on sales of loans 9,723 7,476 9,036 7,499 8,445 17,199 16,527
Wealth management and trust income 192 192
Other non-interest income   1,527   859   97   547   825   2,386   1,557
Total non-interest income 14,502 11,428 12,639 11,918 13,193 25,930 25,501
NON-INTEREST EXPENSE
Salaries and employee benefits 19,244 18,278 17,118 16,323 17,226 37,522 33,828
Occupancy expense, net 4,499 3,755 3,553 3,301 3,485 8,254 7,224
Equipment expense 558 603 663 630 616 1,161 1,179
Loan and lease related expenses 1,471 1,400 1,116 891 801 2,871 1,678
Legal, audit and other professional fees 4,418 1,851 2,658 1,608 1,090 6,269 2,761
Data processing 10,371 2,301 2,284 2,399 2,447 12,672 4,856
Net loss (gain) recognized on other real estate

owned and other related expenses

472 (1 ) (430 ) 565 141 471 (429 )
Regulatory assessments 366 241 299 326 384 607 568
Other intangible assets amortization expense 1,130 767 767 769 769 1,897 1,538
Advertising and promotions 347 249 232 196 318 596 607
Telecommunications 466 418 428 351 396 884 814
Other non-interest expense   2,428   2,057   1,670   3,706   1,576   4,485   3,476
Total non-interest expense   45,770   31,919   30,358   31,065   29,249   77,689   58,100
INCOME BEFORE PROVISION FOR INCOME

TAXES

3,832 8,089 11,085 8,365 10,240 11,921 21,344
PROVISION (BENEFIT) FOR INCOME TAXES   1,064   1,321   11,851   (1,390 )   4,094   2,385   8,638
NET INCOME (LOSS) 2,768 6,768 (766 ) 9,755 6,146 9,536 12,706
Dividends on preferred shares   198   193   196   195   10,697   391   10,886
INCOME AVAILABLE (LOSS

ATTRIBUTABLE) TO COMMON

STOCKHOLDERS

$ 2,570 $ 6,575 $ (962 ) $ 9,560 $ (4,551 ) $ 9,145 $ 1,820
EARNINGS (LOSS) PER COMMON SHARE
Basic $ 0.08 $ 0.22 $ (0.03 ) $ 0.33 $ (0.18 ) $ 0.30 $ 0.07
Diluted $ 0.08 $ 0.22 $ (0.03 ) $ 0.32 $ (0.18 ) $ 0.29 $ 0.07
Weighted average common shares

outstanding for basic earnings (loss) per

common share

31,614,973 29,291,179 29,246,900 29,246,900 24,667,587 30,459,495 24,642,287
Diluted weighted average common shares

outstanding for diluted earnings (loss) per

common share

32,568,396 29,913,633 29,246,900 29,752,331 24,667,587 31,448,320 25,106,887
 

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
June 30,   March 31,   December 31,   September 30,   June 30, June 30,   June 30,
(dollars in thousands, except share and per share data) 2018 2018 2017 2017 2017 2018 2017
Summary of Operations
Net interest income $ 39,056 $ 33,695 $ 32,151 $ 31,412 $ 29,811 $ 72,751 $ 59,349
Provision for loan and lease losses 3,956 5,115 3,347 3,900 3,515 9,071 5,406
Non-interest income 14,502 11,428 12,639 11,918 13,193 25,930 25,501
Non-interest expense   45,770   31,919   30,358   31,065   29,249   77,689   58,100
Income before provision for income taxes 3,832 8,089 11,085 8,365 10,240 11,921 21,344
Provision (benefit) for income taxes   1,064   1,321   11,851   (1,390 )   4,094   2,385   8,638
Net income (loss) 2,768 6,768 (766 ) 9,755 6,146 9,536 12,706
Dividends on preferred shares   198   193   196   195   10,697   391   10,886
Net income available (loss attributable)

to common stockholders

$ 2,570 $ 6,575 $ (962 ) $ 9,560 $ (4,551 ) $ 9,145 $ 1,820
 
Earnings per Common Share
Basic earnings (loss) per common share $ 0.08 $ 0.22 $ (0.03 ) $ 0.33 $ (0.18 ) $ 0.30 $ 0.07
Diluted earnings (loss) per common share $ 0.08 $ 0.22 $ (0.03 ) $ 0.32 $ (0.18 ) $ 0.29 $ 0.07
Adjusted diluted earnings (loss) per common share(2)(3) $ 0.32 $ 0.21 $ 0.24 $ 0.18 $ (0.18 ) $ 0.52 $ 0.07
Weighted average common shares

outstanding (basic)

31,614,973 29,291,179 29,246,900 29,246,900 24,667,587 30,459,495 24,642,287
Weighted average common shares

outstanding (diluted)

32,568,396 29,913,633 29,246,900 29,752,331 24,667,587 31,448,320 25,106,887
Common shares outstanding 36,218,955 29,404,048 29,317,298 29,305,400 29,246,900 36,218,955 29,246,900
 
Key Ratios and performance metrics

(annualized where applicable)

Net interest margin 4.43 % 4.45 % 4.26 % 4.18 % 4.02 % 4.44 % 4.01 %
Cost of deposits 0.52 % 0.41 % 0.35 % 0.33 % 0.30 % 0.47 % 0.27 %
Efficiency ratio(1) 83.35 % 69.04 % 66.06 % 69.92 % 66.23 % 76.81 % 66.66 %
Adjusted efficiency ratio(1)(2)(3) 63.48 % 68.77 % 63.23 % 67.72 % 66.23 % 65.90 % 66.66 %
Non-interest expense to average assets 4.75 % 3.85 % 3.64 % 3.73 % 3.57 % 4.34 % 3.55 %
Adjusted non-interest expense to average

assets(2)(3)

3.65 % 3.84 % 3.49 % 3.61 % 3.57 % 3.73 % 3.55 %
Return (loss) on average stockholders' equity 2.14 % 5.97 % (0.66 )% 8.44 % 6.21 % 3.93 % 6.52 %
Adjusted Return on average stockholders' equity(2)(3) 8.18 % 5.41 % 6.22 % 4.79 % 6.21 % 6.89 % 6.52 %
Return (loss) on average assets 0.29 % 0.82 % (0.09 )% 1.17 % 0.75 % 0.53 % 0.78 %
Adjusted return on average assets(2)(3) 1.10 % 0.74 % 0.87 % 0.66 % 0.75 % 0.93 % 0.78 %
Non-interest income to total revenues(2) 27.08 % 25.33 % 28.22 % 27.51 % 30.68 % 26.28 % 30.05 %
Pre-tax pre-provision return on average assets(2) 0.81 % 1.59 % 1.73 % 1.47 % 1.68 % 1.17 % 1.63 %
Adjusted pre-tax pre-provision return on average

assets(2)(3)

1.91 % 1.61 % 1.89 % 1.59 % 1.68 % 1.77 % 1.63 %
Non-interest bearing deposits to total deposits 32.73 % 29.70 % 31.14 % 29.90 % 30.77 % 32.73 % 30.77 %
Deposits per branch $ 61,778 $ 45,081 $ 43,631 $ 44,227 $ 44,572 $ 61,778 $ 44,572
Loans and leases held for sale and loans and

lease held for investment to total deposits

92.03 % 90.66 % 93.43 % 88.01 % 84.87 % 92.03 % 84.87 %
Deposits to total liabilities 87.01 % 84.17 % 84.03 % 88.58 % 87.23 % 87.01 % 87.23 %
Tangible book value per common share(2) $ 12.18 $ 12.99 $ 12.85 $ 12.95 $ 12.55 $ 12.18 $ 12.55
 
Asset Quality Ratios
Non-performing loans and leases to total loan and

leases held for investment, net before ALLL

0.81 % 1.08 % 0.74 % 0.76 % 0.76 % 0.81 % 0.76 %
ALLL to total loans and leases held for investment,

net before ALLL

0.59 % 0.77 % 0.73 % 0.72 % 0.65 % 0.59 % 0.65 %
Net charge-offs to average total loans and leases

held for investment, net before ALLL

0.29 % 0.75 % 0.46 % 0.34 % 0.26 % 0.50 % 0.22 %
Acquisition accounting adjustments(4) $ 52,090 $ 28,058 $ 31,693 $ 34,249 $ 37,713 $ 52,090 $ 37,713
 
Capital Ratios
Common equity to assets 12.63 % 13.07 % 13.31 % 13.59 % 13.01 % 12.63 % 13.01 %
Tangible common equity to tangible assets(2) 9.51 % 11.26 % 11.44 % 11.73 % 11.16 % 9.51 % 11.16 %
Leverage ratio 10.57 % 12.14 % 12.25 % 11.95 % 11.73 % 10.57 % 11.73 %
Common equity tier 1 capital ratio 10.88 % 13.49 % 13.77 % 13.93 % 13.61 % 10.88 % 13.61 %
Tier 1 capital ratio 12.36 % 15.30 % 15.27 % 15.38 % 15.06 % 12.36 % 15.06 %
Total capital ratio 12.92 % 16.05 % 15.98 % 16.08 % 15.68 % 12.92 % 15.68 %
     

(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)

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

(4)

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 June 30,
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 $ 68,019 $ 199 1.17 % $ 80,327 $ 174 0.87 %
Loans and leases(1) 2,638,757 39,627 6.02 % 2,153,482 29,181 5.44 %
Securities available-for-sale 694,154 4,203 2.43 % 605,688 3,134 2.08 %
Securities held-to-maturity 96,414 583 2.42 % 116,931 675 2.32 %
Tax-exempt securities(2)   36,749   229 2.50 %   21,413   151 2.83 %
Total interest-earning assets $ 3,534,093 $ 44,841 5.09 % $ 2,977,841 $ 33,315 4.49 %
Allowance for loan and lease losses (18,292 ) (12,377 )
All other assets   347,383   319,201
TOTAL ASSETS $ 3,863,184 $ 3,284,665
LIABILITIES AND STOCKHOLDERS'

EQUITY

Deposits
Interest checking $ 227,760 $ 124 0.22 % $ 187,825 $ 31 0.07 %
Money market accounts 469,066 781 0.67 % 374,383 226 0.24 %
Savings 454,295 83 0.07 % 447,324 79 0.07 %
Time deposits   864,348   2,757 1.28 %   799,285   1,587 0.80 %
Total interest-bearing

deposits

2,015,469 3,745 0.75 % 1,808,817 1,923 0.43 %
Federal Home Loan Bank advances 342,825 1,360 1.59 % 225,579 772 1.37 %
Other borrowed funds   57,644   680 4.73 %   76,255   809 4.26 %
Total borrowings   400,469   2,040 2.04 %   301,834   1,581 2.10 %
Total interest-bearing liabilities $ 2,415,938 $ 5,785 0.96 % $ 2,110,651 $ 3,504 0.67 %
Non-interest bearing demand deposits 891,175 745,907
Other liabilities 37,524