Byline Bancorp, Inc. Reports First Quarter 2023 Financial Results

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04/27/2023 - 04:15 PM

Select First Quarter 2023 Financial Highlights

Net income of $23.9 million, or $0.64 per diluted share
Pre-tax pre-provision return on average assets of 2.32%¹
Return on average assets of 1.32%; Return on average tangible common equity of 16.20%¹
Net interest margin of 4.38%; down one bp from the previous quarter
Efficiency ratio of 52.10%
Total loans and leases of $5.5 billion, quarterly increase of $74.6 million
Total deposits of $5.8 billion, quarterly increase of $117.5 million
Tangible Common Equity to Tangible Assets of 8.66%¹
Common Equity Tier 1 to Risk Weighted Assets of 10.27%

CHICAGO--(BUSINESS WIRE)-- Byline Bancorp, Inc. ("Byline", the “Company”, "we", "our", or "us") (NYSE: BY), the parent company of Byline Bank (the “Bank”), today reported net income of $23.9 million, or $0.64 per diluted share, for the first quarter of 2023 compared with net income of $24.4 million, or $0.65 per diluted share, for the fourth quarter of 2022, and net income of $21.4 million², or $0.56 per diluted share, for the first quarter 2022.

Roberto R. Herencia, Executive Chairman and Chief Executive Officer of Byline Bancorp, Inc., commented, “Our first quarter results reflect the resiliency of our diversified business model and prudent management, notwithstanding continued rate increases and a challenging operating environment. We remain focused on executing our strategy, supporting new and existing customers and growing the value of our franchise. I am proud of the way our bankers navigated the recent turmoil within our industry, with a focus on serving our customers and communities.”

Alberto J. Paracchini, President of Byline Bancorp, Inc. added, “We delivered solid financial results for the first quarter as our performance was both balanced and strong during a period of heightened volatility and uncertainty. During the quarter, we increased our capital position and we believe we continue to maintain a high level of liquidity given the environment. At the same time, we grew revenue by 17% year-over-year, controlled non-interest expenses, achieved positive operating leverage, maintained credit quality and delivered strong profitability. Looking forward, we believe our diversified franchise, and strong capital and liquidity, position us well for the remainder of 2023.”

Board Declares Cash Dividend of $0.09 per Share

On April 25, 2023, the Company's Board of Directors declared a cash dividend of $0.09 per share, payable on May 23, 2023, to stockholders of record of the Company's common stock as of May 9, 2023.

(1)		Represents non-GAAP financial measures. See “Reconciliation of non-GAAP Financial Measures” for a reconciliation of our non-GAAP measures to the most directly comparable GAAP financial measure.
(2)		Recast due to the adoption of ASU 2016-13 Financial Instruments - Credit Losses on December 31, 2022, which was applied retrospectively to January 1, 2022. Results for periods beginning after September 30, 2022 are presented under the new standard, while prior quarters previously reported are recast as if the new standard had been applied since January 1, 2022. Refer to our Annual Report on Form 10-K for the year ended December 31, 2022 for additional information on the adoption of the standard.

STATEMENTS OF OPERATIONS

Net Interest Income

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

	For the Three Months Ended
	March 31, 2023							December 31, 2022							Recast March 31, 2022
(dollars in thousands)	Average Balance⁽⁵⁾			Interest Inc / Exp		Avg. Yield / Rate		Average Balance⁽⁵⁾			Interest Inc / Exp		Avg. Yield / Rate		Average Balance⁽⁵⁾			Interest Inc / Exp		Avg. Yield / Rate
ASSETS
Cash and cash equivalents	$	97,578		$	442	1.84	%	$	89,367		$	234	1.04	%	$	74,822		$	29	0.16	%
Loans and leases⁽¹⁾		5,484,372			92,343	6.83	%		5,389,210		$	85,720	6.31	%		4,669,047			55,138	4.79	%
Taxable securities		1,275,377			6,431	2.04	%		1,288,750		$	7,043	2.17	%		1,339,345			5,358	1.62	%
Tax-exempt securities⁽²⁾		151,817			994	2.65	%		155,562		$	1,021	2.60	%		169,652			1,124	2.69	%
Total interest-earning assets	$	7,009,144		$	100,210	5.80	%	$	6,922,889		$	94,018	5.39	%	$	6,252,866		$	61,649	4.00	%
Allowance for credit losses - loans and leases		(84,321	)						(81,815	)						(68,058	)
All other assets		420,328							424,979							512,668
TOTAL ASSETS	$	7,345,151						$	7,266,053						$	6,697,476
LIABILITIES AND STOCKHOLDERS’ EQUITY
Deposits
Interest checking	$	606,008		$	2,494	1.67	%	$	596,627		$	1,902	1.27	%	$	579,297		$	178	0.12	%
Money market accounts		1,465,677			7,728	2.14	%		1,472,050			5,458	1.47	%		1,255,431			474	0.15	%
Savings		613,590			227	0.15	%		647,536			243	0.15	%		649,269			76	0.05	%
Time deposits		966,409			5,849	2.45	%		788,856			3,007	1.51	%		662,080			359	0.22	%
Total interest-bearing deposits		3,651,684			16,298	1.81	%		3,505,069			10,610	1.20	%		3,146,077			1,087	0.14	%
Other borrowings		573,433			5,852	4.14	%		514,518			4,598	3.55	%		290,545			395	0.55	%
Federal funds purchased		2,778			36	5.30	%		—			—	0.00	%		—			—	0.00	%
Subordinated notes and debentures		111,101			2,098	7.66	%		110,947			1,992	7.12	%		110,490			1,600	5.87	%
Total borrowings		687,312			7,986	4.71	%		625,465			6,590	4.18	%		401,035			1,995	2.02	%
Total interest-bearing liabilities	$	4,338,996		$	24,284	2.27	%	$	4,130,534		$	17,200	1.65	%	$	3,547,112		$	3,082	0.35	%
Non-interest-bearing demand deposits		2,076,613							2,235,464							2,248,035
Other liabilities		145,253							151,763							80,276
Total stockholders’ equity		784,289							748,292							822,053
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY	$	7,345,151						$	7,266,053						$	6,697,476
Net interest spread⁽³⁾						3.53	%						3.74	%						3.65	%
Net interest income, fully taxable equivalent				$	75,926						$	76,818						$	58,567
Net interest margin, fully taxable equivalent⁽²⁾⁽⁴⁾						4.39	%						4.40	%						3.80	%
Less: Tax-equivalent adjustment					208	0.01	%					214	0.01	%					236	0.02	%
Net interest income				$	75,718						$	76,604						$	58,331
Net interest margin⁽⁴⁾						4.38	%						4.39	%						3.78	%

Net loan accretion impact on margin				$	729	0.04	%				$	369	0.02	%				$	1,187	0.08	%

___________________
(1)		Loan and lease balances are net of deferred origination fees and costs and initial indirect costs. Non-accrual loans and leases are included in total loan and lease balances.
(2)		Interest income and rates include the effects of a tax equivalent adjustment to adjust tax exempt investment income on tax exempt investment securities to a fully taxable basis, assuming a federal income tax rate of 21%.
(3)		Represents the average rate earned on interest-earning assets minus the average rate paid on interest-bearing liabilities.
(4)		Represents net interest income (annualized) divided by total average earning assets.
(5)		Average balances are average daily balances.

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

							March 31, 2023
	Three Months Ended						Change from
					Recast
	March 31,		December 31,		March 31,		December 31,			March 31,
(dollars in thousands)	2023		2022		2022		2022			2022
INTEREST AND DIVIDEND INCOME
Interest and fees on loans and leases	$	92,343	$	85,720	$	55,138		7.7	%		67.5	%
Interest on securities		6,600		6,569		6,155		0.5	%		7.2	%
Other interest and dividend income		1,059		1,515		120		(30.1	)%		781.5	%
Total interest and dividend income		100,002		93,804		61,413		6.6	%		62.8	%
INTEREST EXPENSE
Deposits		16,298		10,610		1,087		53.6	%		1399.7	%
Other borrowings		5,888		4,598		395		28.1	%		1391.2	%
Subordinated notes and debentures		2,098		1,992		1,600		5.3	%		31.1	%
Total interest expense		24,284		17,200		3,082		41.2	%		688.1	%
Net interest income	$	75,718	$	76,604	$	58,331		(1.2	)%		29.8	%

Net interest income for the first quarter of 2023 was $75.7 million, a decrease of $886,000, or 1.2%, from the fourth quarter of 2022. The decrease was driven by day count and rising interest rates.

The decrease in net interest income was primarily due to:

An increase of $5.7 million in deposit interest expense mainly due to higher average balances and higher rates paid on time deposits and money market accounts; and
An increase of $1.3 million in interest expense on other borrowings due to higher rates paid and average balances on borrowings.

Partially offset by:

An increase of $6.6 million in interest income and fees on loans and leases due to higher yields on loans and leases.

Tax-equivalent net interest margin for the first quarter of 2023 was 4.39%, a decrease of one basis point compared to the fourth quarter of 2022. Total net loan accretion income impact on margin contributed four basis points to the net interest margin for the first quarter of 2023 compared to two basis points for the fourth quarter of 2022.

The average cost of total deposits was 1.15% for the first quarter of 2023, an increase of 42 basis points compared to the fourth quarter of 2022. Average non-interest-bearing demand deposits were 36.3% of average total deposits for the first quarter of 2023 compared to 38.9% during the fourth quarter of 2022.

Provision for Credit Losses

The provision for credit losses was $9.8 million for the first quarter of 2023, an increase of $4.0 million compared to $5.8 million for the fourth quarter of 2022. The provision for credit losses is comprised of a provision for loan and lease losses of $9.7 million and a provision for unfunded commitments of $113,000. The increase in provision during the first quarter of 2023 was primarily driven by increases in specific reserves on loans that were individually evaluated for impairment, changes in expected losses driven by macro-economic factors, and growth in the loan and lease portfolio.

Non-interest Income

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

									March 31, 2023
	Three Months Ended								Change from
						Recast
	March 31,		December 31,			March 31,			December 31,			March 31,
(dollars in thousands)	2023		2022			2022			2022			2022
NON-INTEREST INCOME
Fees and service charges on deposits	$	2,120	$	2,081		$	1,884			1.9	%		12.5	%
Loan servicing revenue		3,380		3,293			3,380			2.7	%		0.0	%
Loan servicing asset revaluation		656		(3,534	)		(1,231	)	NM				(153.3	)%
ATM and interchange fees		1,063		1,250			1,049			(14.9	)%		1.3	%
Change in fair value of equity securities, net		350		710			(35	)		(50.6	)%	NM
Net gains on sales of loans		5,148		5,509			10,827			(6.6	)%		(52.4	)%
Wealth management and trust income		924		864			1,048			7.0	%		(11.9	)%
Other non-interest income		1,504		1,282			2,621			17.2	%		(42.6	)%
Total non-interest income	$	15,145	$	11,455		$	19,543			32.2	%		(22.5	)%

Non-interest income for the first quarter of 2023 was $15.1 million, an increase of $3.7 million, or 32.2%, compared to $11.5 million for the fourth quarter of 2022.

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

An increase of $4.2 million in the valuation of the loan servicing asset from favorable fair value adjustments due to improvements in market conditions.

Partially offset by:

A decrease of $361,000 in the net gain on sales of loans, due to lower volume of loan sales.

During the first quarter of 2023, we sold $72.2 million of U.S. government guaranteed loans compared to $86.0 million during the fourth quarter of 2022.

Non-interest Expense

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

									March 31, 2023
	Three Months Ended								Change from
						Recast
	March 31,			December 31,		March 31,			December 31,			March 31,
(dollars in thousands)	2023			2022		2022			2022			2022
NON-INTEREST EXPENSE
Salaries and employee benefits	$	30,394		$	31,808	$	28,959			(4.4	)%		5.0	%
Occupancy and equipment expense, net		4,444			3,532		5,128			25.8	%		(13.3	)%
Impairment charge on assets held for sale		20			372		—			(94.8	)%	NM
Loan and lease related expenses		963			1,126		(891	)		(14.4	)%		(208.1	)%
Legal, audit and other professional fees		3,114			3,204		2,600			(2.8	)%		19.8	%
Data processing		3,783			3,406		3,186			11.1	%		18.7	%
Net (gain) loss recognized on other real estate owned and other related expenses		(103	)		221		54		NM			NM
Other intangible assets amortization expense		1,455			1,596		1,596			(8.8	)%		(8.8	)%
Other non-interest expense		4,730			5,235		3,324			(9.6	)%		42.3	%
Total non-interest expense	$	48,800		$	50,500	$	43,956			(3.4	)%		11.0	%

Non-interest expense for the first quarter of 2023 was $48.8 million, a decrease of $1.7 million, or 3.4%, from $50.5 million for the fourth quarter of 2022.

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

A decrease of $1.4 million in salaries and employee benefits mainly due to decreases in incentive compensation, offset by increases in payroll taxes; and
A decrease of $505,000 in other non-interest expense, as the prior quarter included net losses of $480,000 in leasehold improvements.

Partially offset by:

An increase of $912,000 in occupancy and equipment expense, net, primarily due to increases in real estate taxes and building maintenance; and
An increase of $377,000 in data processing mainly due to merger related expenses.

Our efficiency ratio was 52.10% for the first quarter of 2023 compared to 55.53% for the fourth quarter of 2022.

INCOME TAXES

We recorded income tax expense of $8.3 million during the first quarter of 2023, compared to $7.4 million during the fourth quarter of 2022. The effective tax rate was 25.7% and 23.2% for the first quarter of 2023 and fourth quarter of 2022, respectively. The increase in the effective tax rate is primarily due to the effect of a prior quarter tax benefit related to share-based compensation.

STATEMENTS OF FINANCIAL CONDITION

Total assets were $7.5 billion at March 31, 2023, an increase of $167.4 million compared to $7.4 billion at December 31, 2022.

The current quarter increase was primarily due to:

An increase in cash and cash equivalents of $104.9 million primarily to augment liquidity levels given the environment and support customer activities; and
An increase in net loans and leases of $85.5 million primarily due to growth in the originated loan and lease portfolio.

Partially offset by:

A decrease in loans held for sale of $19.4 million, driven mainly by lower volume of government guaranteed loans.

The following table shows our allocation of the originated, purchase credit deteriorated, and non-credit deteriorated loans and leases at the dates indicated:

													Recast
	March 31, 2023						December 31, 2022						March 31, 2022
(dollars in thousands)	Amount			% of Total			Amount			% of Total			Amount			% of Total
Originated loans and leases
Commercial real estate	$	1,749,808			31.7	%	$	1,712,152			31.6	%	$	1,530,703			32.0	%
Residential real estate		441,291			8.0	%		426,226			7.9	%		399,852			8.3	%
Construction, land development, and other land		446,763			8.1	%		438,617			8.1	%		351,518			7.3	%
Commercial and industrial		2,060,537			37.4	%		2,029,855			37.5	%		1,697,555			35.5	%
Paycheck Protection Program		730			0.0	%		761			0.0	%		36,260			0.8	%
Installment and other		1,603			0.0	%		1,410			0.0	%		946			0.0	%
Leasing financing receivables		552,174			10.0	%		521,689			9.6	%		379,527			7.9	%
Total originated loans and leases	$	5,252,906			95.2	%	$	5,130,710			94.7	%	$	4,396,361			91.8	%
Purchased credit deteriorated loans
Commercial real estate	$	39,000			0.7	%	$	45,143			0.8	%	$	62,480			1.3	%
Residential real estate		30,070			0.6	%		32,228			0.6	%		46,576			1.0	%
Construction, land development, and other land		345			0.0	%		372			0.0	%		1,383			0.0	%
Commercial and industrial		1,745			0.0	%		2,192			0.0	%		3,884			0.1	%
Installment and other		134			0.0	%		140			0.0	%		161			0.0	%
Total purchased credit deteriorated loans	$	71,294			1.3	%	$	80,075			1.4	%	$	114,484			2.4	%
Acquired non-credit-deteriorated loans and leases
Commercial real estate	$	140,576			2.6	%	$	152,193			2.8	%	$	185,107			3.9	%
Residential real estate		27,975			0.5	%		31,508			0.6	%		48,173			1.0	%
Construction, land development, and other land		—			0.0	%		—			0.0	%		196			0.0	%
Commercial and industrial		20,793			0.4	%		24,266			0.5	%		37,882			0.8	%
Installment and other		85			0.0	%		209			0.0	%		247			0.0	%
Leasing financing receivables		1,703			0.0	%		2,297			0.0	%		5,157			0.1	%
Total acquired non-credit-deteriorated loans and leases	$	191,132			3.5	%	$	210,473			3.9	%	$	276,762			5.8	%
Total loans and leases	$	5,515,332			100.0	%	$	5,421,258			100.0	%	$	4,787,607			100.0	%
Allowance for credit losses - loans and leases		(90,465	)					(81,924	)					(72,107	)
Total loans and leases, net of allowance for credit losses - loans and leases	$	5,424,867					$	5,339,334					$	4,715,500

ASSET QUALITY

Non-Performing Assets

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

										March 31, 2023
							Recast			Change from
(dollars in thousands)	March 31, 2023			December 31, 2022			March 31, 2022			December 31, 2022			March 31, 2022
Non-performing assets:
Non-accrual loans and leases	$	46,536		$	36,027		$	33,236			29.2	%		40.0	%
Past due loans and leases 90 days or more and still accruing interest		—			—			—		—		%	—		%
Total non-performing loans and leases	$	46,536		$	36,027		$	33,236			29.2	%		40.0	%
Other real estate owned		3,712			4,717			2,221			(21.3	)%		67.1	%
Total non-performing assets	$	50,248		$	40,744		$	35,457			23.3	%		41.7	%
Total non-performing loans and leases as a percentage of total loans and leases		0.84	%		0.66	%		0.69	%
Total non-performing assets as a percentage of total assets		0.67	%		0.55	%		0.52	%
Allowance for credit losses - loans and lease as a percentage of non-performing loans and leases		194.40	%		227.40	%		216.96	%

Non-performing assets guaranteed by U.S. government:
Non-accrual loans guaranteed	$	2,335		$	2,225		$	1,832			5.0	%		27.5	%
Past due loans 90 days or more and still accruing interest guaranteed		—			—			—		—		%	—		%
Total non-performing loans guaranteed	$	2,335		$	2,225		$	1,832			5.0	%		27.5	%
Total non-performing loans and leases not guaranteed as a percentage of total loans and leases		0.80	%		0.62	%		0.66	%
Total non-performing assets not guaranteed as a percentage of total assets		0.64	%		0.52	%		0.49	%

Variances in non-performing assets were:

Non-performing loans and leases were $46.5 million at March 31, 2023, an increase of $10.5 million from $36.0 million at December 31, 2022, primarily due to an increase in impaired loans.
Other real estate owned was $3.7 million at March 31, 2023, a decrease of $1.0 million from $4.7 million at December 31, 2022, primarily due to sales of properties.

Allowance for Credit Losses ("ACL") - Loans and Leases

The following table presents the balance and activity within the allowance for credit losses - loans and leases for the periods indicated:

	Three Months Ended
							Recast
	March 31,			December 31,			March 31,
(dollars in thousands)	2023			2022			2022
ACL - loans and leases, beginning of period	$	81,924		$	79,704		$	55,012
Cumulative effect adjustment (ASU 2016-13)		—			—			12,168
Provision for credit losses - loans and leases		9,712			5,399			5,723
Net charge-offs - loans and leases		(1,171	)		(3,179	)		(796	)
ACL - loans and leases, end of period	$	90,465		$	81,924		$	72,107
Net charge-offs - loans and leases to average total loans and leases held for investment, net before ACL		0.09	%		0.24	%		0.07	%
Provision for credit losses - loans and leases to net charge-offs - loans and leases during the period		8.29x			1.70x			7.19x

Net charge-offs of loans and leases during the first quarter of 2023 were $1.2 million, or 0.09% of average loans and leases, on an annualized basis, a decrease of $2.0 million compared to $3.2 million, or 0.24% of average loans and leases, during the fourth quarter of 2022, and an increase of $375,000 from $796,000 or 0.07% of average loans and leases from the comparable period a year ago.

Net charge-offs for the first quarter of 2023 included $1.1 million in the unguaranteed portion of U.S. government guaranteed loans, while net charge-offs for the fourth quarter of 2022 and first quarter of 2022 included $645,000 and $362,000, respectively, in the unguaranteed portion of U.S. government guaranteed loans.

Deposits and Other Liabilities

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

							March 31, 2023
							Change from
(dollars in thousands)	March 31, 2023		December 31, 2022		March 31, 2022		December 31, 2022			March 31, 2022
Non-interest-bearing demand deposits	$	1,952,045	$	2,138,645	$	2,281,612		(8.7	)%		(14.4	)%
Interest-bearing checking accounts		560,837		592,098		596,497		(5.3	)%		(6.0	)%
Money market demand accounts		1,453,688		1,415,653		1,357,679		2.7	%		7.1	%
Other savings		590,231		625,798		659,218		(5.7	)%		(10.5	)%
Time deposits (below $250,000)		1,089,785		762,250		505,141		43.0	%		115.7	%
Time deposits ($250,000 and above)		166,066		160,677		129,955		3.4	%		27.8	%
Total deposits	$	5,812,652	$	5,695,121	$	5,530,102		2.1	%		5.1	%

Total deposits increased to $5.8 billion at March 31, 2023 compared to $5.7 billion at December 31, 2022. Non-interest-bearing deposits were 33.6% and 37.6% of total deposits at March 31, 2023 and December 31, 2022, respectively. Estimated total uninsured deposits were $1.6 billion as of March 31, 2023 and December 31, 2022, and represented 27.9% and 28.2% of total deposits, respectively.

The increase in deposits in the current quarter was due to:

An increase in time deposits of $332.9 million, principally due to deposit mix changes, including migration of deposits from other core deposit accounts to time deposits; and
An increase in money market demand accounts of $38.0 million, mainly due to inflows of public funds.

Partially offset by:

A decrease in non-interest-bearing demand deposits of $186.6 million, primarily due to seasonal fluctuations in balances and a competitive interest rate environment.

Total borrowings and other liabilities were $922.0 million at March 31, 2023, an increase of $20.0 million from $902.0 million at December 31, 2022, primarily driven by increases to securities sold under agreements to repurchase due to prevailing market conditions.

Stockholders’ Equity

Total stockholders’ equity was $795.7 million at March 31, 2023, an increase of $29.8 million from $765.8 million at December 31, 2022. The increase was primarily due to increased retained earnings due to net income and decreased accumulated other comprehensive loss due to decreased unrealized losses on AFS securities.

The following table presents actual regulatory capital dollar amounts and ratios of the Company and the Bank as of March 31, 2023:

	Actual					Minimum Capital Required					Required to be Considered Well Capitalized
March 31, 2023	Amount		Ratio			Amount		Ratio			Amount		Ratio
Total capital to risk weighted assets:
Company	$	931,827		13.19	%	$	565,374		8.00	%	N/A		N/A
Bank		884,077		12.55	%		563,335		8.00	%	$	704,168		10.00	%
Tier 1 capital to risk weighted assets:
Company	$	770,494		10.90	%	$	424,031		6.00	%	N/A		N/A
Bank		797,744		11.33	%		422,501		6.00	%	$	563,335		8.00	%
Common Equity Tier 1 (CET1) to risk weighted assets:
Company	$	725,494		10.27	%	$	318,023		4.50	%	N/A		N/A
Bank		797,744		11.33	%		316,876		4.50	%	$	457,709		6.50	%
Tier 1 capital to average assets:
Company	$	770,494		10.46	%	$	294,524		4.00	%	N/A		N/A
Bank		797,744		10.85	%	$	293,994		4.00	%	$	367,492		5.00	%

Capital ratios for the period presented are based on the Basel III regulatory capital framework as applied to our current business and operations, and are subject to, among other things, completion and filing of our regulatory reports and ongoing regulatory review and implementation guidance. The ratios above reflect the Company’s election to opt into the regulators’ joint current expected credit losses ("CECL") transition provision, which allows the Company to phase in the capital impact of the adoption of CECL over the next three years beginning January 1, 2022. Accordingly, capital ratios as of March 31, 2023 reflect 50% of the CECL impact.

CECL Adoption

On December 31, 2022, the Company adopted CECL and applied it retrospectively to the period beginning January 1, 2022 using the modified retrospective method of accounting. Results for reporting periods beginning after September 30, 2022 are presented under the new standard, while prior quarters previously reported are recast as if the new standard had been applied since January 1, 2022. Refer to our Annual Report on Form 10-K for the year ended December 31, 2022 for additional information on the adoption of the standard.

Conference Call, Webcast and Slide Presentation

We will host a conference call and webcast at 9:00 a.m. Central Time on Friday, April 28, 2023 to discuss our quarterly financial results. Analysts and investors may participate in the question-and-answer session. The call can be accessed via telephone at (833) 470-1428; passcode 370613. A recorded replay can be accessed through May 12, 2023 by dialing (866) 813-9403; passcode: 354719

A slide presentation relating to our first quarter 2023 results will be accessible prior to the conference call. The slide presentation and webcast of the conference call can be accessed on our investor relations website at www.bylinebancorp.com.

About Byline Bancorp, Inc.

Headquartered in Chicago, Byline Bancorp, Inc. is the parent company of Byline Bank, a full service commercial bank serving small- and medium-sized businesses, financial sponsors, and consumers. Byline Bank has approximately $7.5 billion in assets and operates more than 30 full service branch locations throughout the Chicago and Milwaukee metropolitan areas. Byline Bank offers a broad range of commercial and retail banking products and services including small ticket equipment leasing solutions and is one of the top Small Business Administration lenders in the United States.

Forward-Looking Statements

This communication contains forward-looking statements within the meaning of the U.S. federal securities laws. Forward-looking statements include, without limitation, statements concerning plans, estimates, calculations, forecasts and projections with respect to the anticipated future performance of the Company. These statements are often, but not always, made through the use of words or phrases such as ‘‘may’’, ‘‘might’’, ‘‘should’’, ‘‘could’’, ‘‘predict’’, ‘‘potential’’, ‘‘believe’’, ‘‘expect’’, ‘‘continue’’, ‘‘will’’, ‘‘anticipate’’, ‘‘seek’’, ‘‘estimate’’, ‘‘intend’’, ‘‘plan’’, ‘‘projection’’, ‘‘would’’, ‘‘annualized’’, “target” and ‘‘outlook’’, or the negative version of those words or other comparable words or phrases of a future or forward-looking nature. Forward-looking statements involve estimates and known and unknown risks, and reflect various assumptions and involve elements of subjective judgment and analysis, which may or may not prove to be correct, and which are subject to uncertainties and contingencies outside the control of Byline and its respective affiliates, directors, employees and other representatives, which could cause actual results to differ materially from those presented in this communication.

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

Certain risks and important factors that could affect Byline’s future results are identified in our Annual Report on Form 10-K and other reports we file with the Securities and Exchange Commission, including among other things under the heading “Risk Factors” in our Annual Report on Form 10-K for the year ended December 31, 2022. Any forward-looking statement speaks only as of the date on which it is made, and Byline undertakes no obligation to update any forward-looking statement, whether to reflect events or circumstances after the date on which the statement is made, to reflect new information or the occurrence of unanticipated events, or otherwise unless required under the federal securities laws.

BYLINE BANCORP, INC. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION (unaudited)

							Recast			Recast			Recast
	March 31,			December 31,			September 30,			June 30,			March 31,
(dollars in thousands)	2023			2022			2022			2022			2022
ASSETS
Cash and due from banks	$	52,725		$	62,274		$	56,546		$	58,844		$	48,015
Interest bearing deposits with other banks		231,486			117,079			159,744			83,057			105,564
Cash and cash equivalents		284,211			179,353			216,290			141,901			153,579
Equity and other securities, at fair value		8,339			7,989			7,279			7,860			10,677
Securities available-for-sale, at fair value		1,164,387			1,174,431			1,181,654			1,273,138			1,369,368
Securities held-to-maturity, at amortized cost		2,704			2,705			3,877			3,880			3,882
Restricted stock, at cost		38,777			28,202			27,077			30,002			13,977
Loans held for sale		28,379			47,823			33,975			17,284			39,520
Loans and leases:
Loans and leases		5,515,332			5,421,258			5,275,126			5,167,716			4,787,607
Allowance for credit losses - loans and leases		(90,465	)		(81,924	)		(79,704	)		(74,048	)		(72,107	)
Net loans and leases		5,424,867			5,339,334			5,195,422			5,093,668			4,715,500
Servicing assets, at fair value		20,944			19,172			21,127			22,155			24,497
Premises and equipment, net		56,098			56,798			59,049			60,773			62,281
Other real estate owned, net		3,712			4,717			4,402			4,749			2,221
Goodwill and other intangible assets, net		157,432			158,887			160,484			162,094			163,962
Bank-owned life insurance		82,693			82,093			81,592			81,100			80,604
Deferred tax assets, net		64,918			68,213			95,831			82,412			71,355
Accrued interest receivable and other assets		192,885			193,224			179,218			143,014			114,035
Total assets	$	7,530,346		$	7,362,941		$	7,267,277		$	7,124,030		$	6,825,458
LIABILITIES AND STOCKHOLDERS’ EQUITY
LIABILITIES
Non-interest-bearing demand deposits	$	1,952,045		$	2,138,645		$	2,142,183		$	2,180,927		$	2,281,612
Interest-bearing deposits		3,860,607			3,556,476			3,470,273			3,207,450			3,248,490
Total deposits		5,812,652			5,695,121			5,612,456			5,388,377			5,530,102
Other borrowings		662,810			640,399			653,954			748,092			311,450
Subordinated notes, net		73,735			73,691			73,648			73,604			73,560
Junior subordinated debentures issued to capital trusts, net		37,442			37,338			37,232			37,123			37,011
Accrued expenses and other liabilities		148,057			150,576			154,182			121,186			95,674
Total liabilities		6,734,696			6,597,125			6,531,472			6,368,382			6,047,797
STOCKHOLDERS’ EQUITY
Preferred stock		—			—			—			—			—
Common stock		390			389			389			388			388
Additional paid-in capital		598,103			598,297			597,049			595,938			595,006
Retained earnings		356,365			335,794			314,800			297,765			279,387
Treasury stock		(51,066	)		(51,114	)		(51,535	)		(47,181	)		(40,732	)
Accumulated other comprehensive loss, net of tax		(108,142	)		(117,550	)		(124,898	)		(91,262	)		(56,388	)
Total stockholders’ equity		795,650			765,816			735,805			755,648			777,661
Total liabilities and stockholders’ equity	$	7,530,346		$	7,362,941		$	7,267,277		$	7,124,030		$	6,825,458

BYLINE BANCORP, INC. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF OPERATIONS (unaudited)

	Three Months Ended
							Recast			Recast			Recast
(dollars in thousands,	March 31,			December 31,			September 30,			June 30,			March 31,
except per share data)	2023			2022			2022			2022			2022
INTEREST AND DIVIDEND INCOME
Interest and fees on loans and leases	$	92,343		$	85,720		$	72,635		$	59,919		$	55,138
Interest on securities		6,600			6,569			6,402			6,264			6,155
Other interest and dividend income		1,059			1,515			626			496			120
Total interest and dividend income		100,002			93,804			79,663			66,679			61,413
INTEREST EXPENSE
Deposits		16,298			10,610			5,971			2,128			1,087
Other borrowings		5,888			4,598			3,232			1,097			395
Subordinated notes and debentures		2,098			1,992			1,825			1,694			1,600
Total interest expense		24,284			17,200			11,028			4,919			3,082
Net interest income		75,718			76,604			68,635			61,760			58,331
PROVISION FOR CREDIT LOSSES		9,825			5,826			7,208			4,286			6,559
Net interest income after provision for credit losses		65,893			70,778			61,427			57,474			51,772
NON-INTEREST INCOME
Fees and service charges on deposits		2,120			2,081			2,128			2,059			1,884
Loan servicing revenue		3,380			3,293			3,422			3,384			3,380
Loan servicing asset revaluation		656			(3,534	)		(2,342	)		(4,636	)		(1,231	)
ATM and interchange fees		1,063			1,250			1,007			1,131			1,049
Net realized gains (losses) on securities available-for-sale		—			—			(2	)		52			—
Change in fair value of equity securities, net		350			710			(581	)		(697	)		(35	)
Net gains on sales of loans		5,148			5,509			5,580			9,983			10,827
Wealth management and trust income		924			864			995			900			1,048
Other non-interest income		1,504			1,282			1,836			2,097			2,621
Total non-interest income		15,145			11,455			12,043			14,273			19,543
NON-INTEREST EXPENSE
Salaries and employee benefits		30,394			31,808			29,587			27,697			28,959
Occupancy and equipment expense, net		4,444			3,532			3,919			4,409			5,128
Impairment charge on assets held for sale		20			372			—			—			—
Loan and lease related expenses		963			1,126			530			942			(891	)
Legal, audit, and other professional fees		3,114			3,204			2,733			1,820			2,600
Data processing		3,783			3,406			3,370			3,396			3,186
Net (gain) loss recognized on other real estate owned and other related expenses		(103	)		221			275			158			54
Other intangible assets amortization expense		1,455			1,596			1,611			1,868			1,596
Other non-interest expense		4,730			5,235			4,016			3,295			3,324
Total non-interest expense		48,800			50,500			46,041			43,585			43,956
INCOME BEFORE PROVISION FOR INCOME TAXES		32,238			31,733			27,429			28,162			27,359
PROVISION FOR INCOME TAXES		8,293			7,366			7,020			6,382			5,961
NET INCOME		23,945			24,367			20,409			21,780			21,398
Dividends on preferred shares		—			—			—			—			196
INCOME AVAILABLE TO COMMON STOCKHOLDERS	$	23,945		$	24,367		$	20,409		$	21,780		$	21,202
EARNINGS PER COMMON SHARE
Basic	$	0.65		$	0.66		$	0.55		$	0.59		$	0.57
Diluted	$	0.64		$	0.65		$	0.55		$	0.58		$	0.56

BYLINE BANCORP, INC. AND SUBSIDIARIES SELECTED FINANCIAL DATA (unaudited)

	As of or For the Three Months Ended
							Recast			Recast			Recast
(dollars in thousands, except share	March 31,			December 31,			September 30,			June 30,			March 31,
and per share data)	2023			2022			2022			2022			2022
Common Share Data

Earnings per Common Share
Basic earnings per common share	$	0.65		$	0.66		$	0.55		$	0.59		$	0.57
Diluted earnings per common share	$	0.64		$	0.65		$	0.55		$	0.58		$	0.56
Adjusted diluted earnings per common share^(1)(2)(3)(4)	$	0.65		$	0.67		$	0.55		$	0.58		$	0.56
Weighted average common shares outstanding (basic)		36,955,085			36,856,221			36,851,973			37,064,795			37,123,161
Weighted average common shares outstanding (diluted)		37,539,912			37,360,113			37,371,159			37,612,268			38,042,822
Common shares outstanding		37,713,427			37,492,775			37,465,902			37,669,102			37,811,582
Cash dividends per common share	$	0.09		$	0.09		$	0.09		$	0.09		$	0.09
Dividend payout ratio on common stock		14.06	%		13.85	%		16.36	%		15.52	%		16.07	%
Tangible book value per common share⁽¹⁾	$	16.92		$	16.19		$	15.36		$	15.76		$	16.23
Key Ratios and Performance Metrics (annualized where applicable)
Net interest margin, fully taxable equivalent ⁽¹⁾⁽⁵⁾		4.39	%		4.40	%		4.04	%		3.78	%		3.80	%
Average cost of deposits		1.15	%		0.73	%		0.43	%		0.16	%		0.08	%
Efficiency ratio⁽²⁾		52.10	%		55.53	%		55.07	%		54.87	%		54.40	%
Adjusted efficiency ratio^(1)(2)(3)		51.54	%		54.50	%		55.07	%		54.87	%		54.40	%
Non-interest income to total revenues⁽¹⁾		16.67	%		13.01	%		14.93	%		18.77	%		25.09	%
Non-interest expense to average assets		2.69	%		2.76	%		2.56	%		2.51	%		2.66	%
Adjusted non-interest expense to average assets⁽¹⁾⁽³⁾		2.67	%		2.71	%		2.56	%		2.51	%		2.66	%
Return on average stockholders' equity		12.38	%		12.92	%		10.57	%		11.35	%		10.56	%
Adjusted return on average stockholders' equity^(1)(3)(4)		12.62	%		13.34	%		10.57	%		11.35	%		10.56	%
Return on average assets		1.32	%		1.33	%		1.13	%		1.25	%		1.30	%
Adjusted return on average assets^(1)(3)(4)		1.35	%		1.37	%		1.13	%		1.25	%		1.30	%
Pre-tax pre-provision return on average assets⁽¹⁾		2.32	%		2.05	%		1.93	%		1.87	%		2.05	%
Adjusted pre-tax pre-provision return on average assets⁽¹⁾⁽³⁾		2.35	%		2.10	%		1.93	%		1.87	%		2.05	%
Return on average tangible common stockholders' equity⁽¹⁾		16.20	%		17.21	%		14.17	%		15.31	%		14.02	%
Adjusted return on average tangible common stockholders' equity⁽¹⁾⁽³⁾		16.49	%		17.75	%		14.17	%		15.31	%		14.02	%
Non-interest-bearing deposits to total deposits		33.58	%		37.55	%		38.17	%		40.47	%		41.26	%
Loans and leases held for sale and loans and lease held for investment to total deposits		95.37	%		96.03	%		94.59	%		96.23	%		87.29	%
Deposits to total liabilities		86.31	%		86.33	%		85.93	%		84.61	%		91.44	%
Deposits per branch	$	152,965		$	149,872		$	147,696		$	141,799		$	125,684
Asset Quality Ratios
Non-performing loans and leases to total loans and leases held for investment, net before ACL		0.84	%		0.66	%		0.80	%		0.83	%		0.69	%
ACL to total loans and leases held for investment, net before ACL		1.64	%		1.51	%		1.51	%		1.43	%		1.51	%
Net charge-offs to average total loans and leases held for investment, net before ACL - loans and leases		0.09	%		0.24	%		0.14	%		0.17	%		0.07	%
Capital Ratios
Common equity to total assets		10.57	%		10.40	%		10.12	%		10.61	%		11.39	%
Tangible common equity to tangible assets⁽¹⁾		8.66	%		8.42	%		8.10	%		8.53	%		9.21	%
Leverage ratio		10.46	%		10.29	%		10.30	%		10.34	%		10.70	%
Common equity tier 1 capital ratio		10.27	%		10.20	%		10.24	%		10.26	%		10.75	%
Tier 1 capital ratio		10.90	%		10.85	%		10.91	%		10.95	%		11.49	%
Total capital ratio		13.19	%		13.00	%		13.02	%		13.09	%		13.72	%

___________________
(1)		Represents a non-GAAP financial measure. See “Reconciliation of non-GAAP Financial Measures” for a reconciliation of our non-GAAP measures to the most directly comparable GAAP financial measure.
(2)		Represents non-interest expense less amortization of intangible assets divided by net interest income and non-interest income.
(3)		Calculation excludes impairment charges.
(4)		Represents the remaining net unaccreted discount as a result of applying the fair value adjustment at the time of the business combination on acquired loans.
(5)		Interest income and rates include the effects of a tax equivalent adjustment to adjust tax exempt investment income on tax exempt investment securities to a fully taxable basis, assuming a federal income tax rate of 21%.

BYLINE BANCORP, INC. AND SUBSIDIARIES
RECONCILIATION OF NON-GAAP FINANCIAL MEASURES (unaudited)

Non-GAAP Financial Measures

This release contains certain financial information determined by methods other than in accordance with accounting principles generally accepted in the United States of America (“GAAP”). These measures include adjusted net income, adjusted diluted earnings per share, adjusted efficiency ratio, adjusted non-interest expense to average assets, tax-equivalent net interest margin, total revenue, non-interest income to total revenues, adjusted return on average stockholders’ equity, adjusted return on average assets, pre-tax pre-provision return on average assets, adjusted pre-tax pre-provision return on average assets, tangible book value per common share, tangible common equity to tangible assets, return on average tangible common stockholders' equity, and adjusted return on average tangible common stockholders' equity. Management believes that these non-GAAP financial measures provide useful information to management and investors that is supplementary to the Company’s financial condition, results of operations and cash flows computed in accordance with GAAP; however, management acknowledges that our non-GAAP financial measures have a number of limitations. As such, these disclosures should not be viewed as a substitute for results determined in accordance with GAAP financial measures that we and other companies use. Management also uses these measures for peer comparison. See below in the financial schedules included in this press release for a reconciliation of the non-GAAP financial measures to the comparable GAAP financial measures. Additionally, please refer to the Company’s Annual Report on Form 10-K for the detailed definitions of these non-GAAP financial measures.

	As of or For the Three Months Ended
							Recast		Recast		Recast
	March 31,			December 31,			September 30,		June 30,		March 31,
(dollars in thousands, except per share data)	2023			2022			2022		2022		2022
Net income and earnings per share excluding significant items
Reported Net Income	$	23,945		$	24,367		$	20,409	$	21,780	$	21,398
Significant items:
Impairment charges on assets held for sale and ROU asset		20			372			—		—		—
Merger-related expenses		489			538			—		—		—
Tax benefit		(56	)		(118	)		—		—		—
Adjusted Net Income	$	24,398		$	25,159		$	20,409	$	21,780	$	21,398
Reported Diluted Earnings per Share	$	0.64		$	0.65		$	0.55	$	0.58	$	0.56
Significant items:
Impairment charges on assets held for sale and ROU asset		—			0.01			—		—		—
Merger-related expenses		0.01			0.01			—		—		—
Tax benefit		—			—			—		—		—
Adjusted Diluted Earnings per Share	$	0.65		$	0.67		$	0.55	$	0.58	$	0.56

BYLINE BANCORP, INC. AND SUBSIDIARIES RECONCILIATION OF NON-GAAP FINANCIAL MEASURES (continued) (unaudited)

	As of or For the Three Months Ended
							Recast		Recast		Recast
(dollars in thousands, except per share data,	March 31,			December 31,			September 30,		June 30,		March 31,
ratios annualized, where applicable)	2023			2022			2022		2022		2022
Adjusted non-interest expense:
Non-interest expense	$	48,800		$	50,500		$	46,041	$	43,585	$	43,956
Less: Significant items
Impairment charges on assets held for sale and ROU asset		20			372			—		—		—
Merger-related expenses		489			538			—		—		—
Adjusted non-interest expense	$	48,291		$	49,590		$	46,041	$	43,585	$	43,956
Adjusted non-interest expense excluding amortization of intangible assets:
Adjusted non-interest expense	$	48,291		$	49,590		$	46,041	$	43,585	$	43,956
Less: Amortization of intangible assets		1,455			1,596			1,611		1,868		1,596
Adjusted non-interest expense excluding amortization of intangible assets	$	46,836		$	47,994		$	44,430	$	41,717	$	42,360
Pre-tax pre-provision net income:
Pre-tax income	$	32,238		$	31,733		$	27,429	$	28,162	$	27,359
Add: Provision for credit losses		9,825			5,826			7,208		4,286		6,559
Pre-tax pre-provision net income	$	42,063		$	37,559		$	34,637	$	32,448	$	33,918
Adjusted pre-tax pre-provision net income:
Pre-tax pre-provision net income	$	42,063		$	37,559		$	34,637	$	32,448	$	33,918
Add: Impairment charges on assets held for sale and ROU asset		20			372			—		—		—
Add: Merger-related expenses		489			538			—		—		—
Adjusted pre-tax pre-provision net income	$	42,572		$	38,469		$	34,637	$	32,448	$	33,918
Tax equivalent net interest income
Net interest income	$	75,718		$	76,604		$	68,635	$	61,760	$	58,331
Add: Tax-equivalent adjustment		208			214			228		237		236
Net interest income, fully taxable equivalent	$	75,926		$	76,818		$	68,863	$	61,997	$	58,567
Total revenue:
Net interest income	$	75,718		$	76,604		$	68,635	$	61,760	$	58,331
Add: Non-interest income		15,145			11,455			12,043		14,273		19,543
Total revenue	$	90,863		$	88,059		$	80,678	$	76,033	$	77,874
Tangible common stockholders' equity:
Total stockholders' equity	$	795,650		$	765,816		$	735,805	$	755,648	$	777,661
Less: Preferred stock		—			—			—		—		—
Less: Goodwill and other intangibles		157,432			158,887			160,484		162,094		163,962
Tangible common stockholders' equity	$	638,218		$	606,929		$	575,321	$	593,554	$	613,699
Tangible assets:
Total assets	$	7,530,346		$	7,362,941		$	7,267,277	$	7,124,030	$	6,825,458
Less: Goodwill and other intangibles		157,432			158,887			160,484		162,094		163,962
Tangible assets	$	7,372,914		$	7,204,054		$	7,106,793	$	6,961,936	$	6,661,496
Average tangible common stockholders' equity:
Average total stockholders' equity	$	784,289		$	748,292		$	765,821	$	769,658	$	822,053
Less: Average preferred stock		—			—			—		—		9,974
Less: Average goodwill and other intangibles		158,181			159,680			161,292		163,068		164,837
Average tangible common stockholders' equity	$	626,108		$	588,612		$	604,529	$	606,590	$	647,242
Average tangible assets:
Average total assets	$	7,345,151		$	7,266,053		$	7,137,472	$	6,966,564	$	6,697,476
Less: Average goodwill and other intangibles		158,181			159,680			161,292		163,068		164,837
Average tangible assets	$	7,186,970		$	7,106,373		$	6,976,180	$	6,803,496	$	6,532,639
Tangible net income available to common stockholders:
Net income available to common stockholders	$	23,945		$	24,367		$	20,409	$	21,780	$	21,202
Add: After-tax intangible asset amortization		1,066			1,170			1,181		1,369		1,170
Tangible net income available to common stockholders	$	25,011		$	25,537		$	21,590	$	23,149	$	22,372
Adjusted tangible net income available to common stockholders:
Tangible net income available to common stockholders	$	25,011		$	25,537		$	21,590	$	23,149	$	22,372
Impairment charges on assets held for sale and ROU asset		20			372			—		—		—
Merger-related expenses		489			538			—		—		—
Tax benefit on significant items		(56	)		(118	)		—		—		—
Adjusted tangible net income available to common stockholders	$	25,464		$	26,329		$	21,590	$	23,149	$	22,372

BYLINE BANCORP, INC. AND SUBSIDIARIES RECONCILIATION OF NON-GAAP FINANCIAL MEASURES (continued) (unaudited)

	As of or For the Three Months Ended
							Recast			Recast			Recast
(dollars in thousands, except share and per share	March 31,			December 31,			September 30,			June 30,			March 31,
data, ratios annualized, where applicable)	2023			2022			2022			2022			2022
Pre-tax pre-provision return on average assets:
Pre-tax pre-provision net income	$	42,063		$	37,559		$	34,637		$	32,448		$	33,918
Average total assets		7,345,151			7,266,053			7,137,472			6,966,564			6,697,476
Pre-tax pre-provision return on average assets		2.32	%		2.05	%		1.93	%		1.87	%		2.05	%
Adjusted pre-tax pre-provision return on average assets:
Adjusted pre-tax pre-provision net income	$	42,572		$	38,469		$	34,637		$	32,448		$	33,918
Average total assets		7,345,151			7,266,053			7,137,472			6,966,564			6,697,476
Adjusted pre-tax pre-provision return on average assets		2.35	%		2.10	%		1.93	%		1.87	%		2.05	%
Net interest margin, fully taxable equivalent
Net interest income, fully taxable equivalent	$	75,926		$	76,818		$	68,863		$	61,997		$	58,567
Total average interest-earning assets		7,009,144			6,922,889			6,763,916			6,572,416			6,252,866
Net interest margin, fully taxable equivalent		4.39	%		4.40	%		4.04	%		3.78	%		3.80	%
Non-interest income to total revenues:
Non-interest income	$	15,145		$	11,455		$	12,043		$	14,273		$	19,543
Total revenues		90,863			88,059			80,678			76,033			77,874
Non-interest income to total revenues		16.67	%		13.01	%		14.93	%		18.77	%		25.09	%
Adjusted non-interest expense to average assets:
Adjusted non-interest expense	$	48,291		$	49,590		$	46,041		$	43,585		$	43,956
Average total assets		7,345,151			7,266,053			7,137,472			6,966,564			6,697,476
Adjusted non-interest expense to average assets		2.67	%		2.71	%		2.56	%		2.51	%		2.66	%
Adjusted efficiency ratio:
Adjusted non-interest expense excluding amortization of intangible assets	$	46,836		$	47,994		$	44,430		$	41,717		$	42,360
Total revenues		90,863			88,059			80,678			76,033			77,874
Adjusted efficiency ratio		51.54	%		54.50	%		55.07	%		54.87	%		54.40	%
Adjusted return on average assets:
Adjusted net income	$	24,398		$	25,159		$	20,409		$	21,780		$	21,398
Average total assets		7,345,151			7,266,053			7,137,472			6,966,564			6,697,476
Adjusted return on average assets		1.35	%		1.37	%		1.13	%		1.25	%		1.30	%
Adjusted return on average stockholders' equity:
Adjusted net income	$	24,398		$	25,159		$	20,409		$	21,780		$	21,398
Average stockholders' equity		784,289			748,292			765,821			769,658			822,053
Adjusted return on average stockholders' equity		12.62	%		13.34	%		10.57	%		11.35	%		10.56	%
Tangible common equity to tangible assets:
Tangible common equity	$	638,218		$	606,929		$	575,321		$	593,554		$	613,699
Tangible assets		7,372,914			7,204,054			7,106,793			6,961,936			6,661,496
Tangible common equity to tangible assets		8.66	%		8.42	%		8.10	%		8.53	%		9.21	%
Return on average tangible common stockholders' equity:
Tangible net income available to common stockholders	$	25,011		$	25,537		$	21,590		$	23,149		$	22,372
Average tangible common stockholders' equity		626,108			588,612			604,529			606,590			647,242
Return on average tangible common stockholders' equity		16.20	%		17.21	%		14.17	%		15.31	%		14.02	%
Adjusted return on average tangible common stockholders' equity:
Adjusted tangible net income available to common stockholders	$	25,464		$	26,329		$	21,590		$	23,149		$	22,372
Average tangible common stockholders' equity		626,108			588,612			604,529			606,590			647,242
Adjusted return on average tangible common stockholders' equity		16.49	%		17.75	%		14.17	%		15.31	%		14.02	%
Tangible book value per share:
Tangible common equity	$	638,218		$	606,929		$	575,321		$	593,554		$	613,699
Common shares outstanding		37,713,427			37,492,775			37,465,902			37,669,102			37,811,582
Tangible book value per share	$	16.92		$	16.19		$	15.36		$	15.76		$	16.23

View source version on businesswire.com: https://www.businesswire.com/news/home/20230427005855/en/

Investors:

Brooks Rennie

Investor Relations Director

312-660-5805

brennie@bylinebank.com

Media:

Erin O’Neill

Marketing Director

773-475-2901

eoneill@bylinebank.com

Source: Byline Bancorp, Inc.

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