Byline Bancorp (BY) came out with quarterly earnings of $0.73 per share, beating the Zacks Consensus Estimate of $0.67 per share. This compares to earnings of $0.67 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of 8.96%. A quarter ago, it was expected that this bank holding company would post earnings of $0.61 per share when it actually produced earnings of $0.77, delivering a surprise of 26.23%.Over the last four quarters, the ...

Wall Street analysts expect Byline Bancorp (BY) to post quarterly earnings of $0.67 per share in its upcoming report, which indicates no change from the year-ago quarter. Revenues are expected to be $101.07 million, up 14.8% from the year-ago quarter.Over the past 30 days, the consensus EPS estimate for the quarter has remained unchanged. This demonstrates the covering analysts' collective reassessment of their initial projections during this period.Ahead of a company's earnings disclosure, it is crucial to ...

Financial Performance - For the three months ended September 30, 2023, the company reported a net income of $28.2 million, an increase of $5.6 million compared to $22.7 million for the same period in 2022[244]. - The annual return on average assets for the nine months ended September 30, 2023, was 1.34%, up from 1.26% in the same period of 2022[233]. - The company reported net income available to common stockholders of $78.3 million for the nine months ended September 30, 2023, compared to $65.1 million for the same period in 2022[248]. - The return on average stockholders' equity for the three months ended September 30, 2023, was 12.11%, compared to 11.74% for the same period in 2022[233]. Assets and Liabilities - Total consolidated assets as of September 30, 2023, were $8.9 billion, with total gross loans and leases outstanding at $6.6 billion[249]. - As of September 30, 2023, total deposits were $7.0 billion, reflecting the company's strong deposit base[249]. - The balance of investment securities at the end of the period is $281,000, a decrease from $666,000 at the beginning of the period, reflecting a change in fair value of $(67,000)[262]. - The balance of servicing assets at the end of the period is $19,743, a decrease from $21,127 in the previous year[262]. Income and Dividends - The company declared dividends on common shares of $3.9 million for the three months ended September 30, 2023, compared to $3.4 million for the same period in 2022[245]. - Net interest income increased by $23.6 million and $55.1 million for the three and nine months ended September 30, 2023, respectively, primarily due to higher yields on loans and leases[244]. Acquisitions and Market Position - The acquisition of Inland Bancorp, Inc. was completed on July 1, 2023, with 5,932,323 shares of common stock issued in connection with the acquisition[236]. - The company was the fifth most active SBA lender in the country and the most active 7(a) and 504 lender in Illinois for the fiscal year ended September 30, 2023[242]. Derivative Instruments and Risk Management - The notional amounts of derivative assets are $650,000, with a fair value of $47,488 for assets and $1,633 for liabilities[264]. - The Company has a bilateral agreement with each swap counterparty to fully collateralize fluctuations in derivative values with cash or securities[265]. - The aggregate interest rate risk exposure is monitored within board-approved policy limits, with results of simulation analysis being hypothetical[516]. - The Company has agreements with derivative counterparties that include cross-default provisions, which could lead to default on derivative obligations if the Company defaults on any indebtedness[266]. - The weighted average remaining maturity of derivative instruments is 3.2 years[264]. - The net interest income simulation model evaluates potential changes in net interest income under various interest rate scenarios, with results not intended as forecasts but for planning asset-liability management strategies[515].

Financial Data and Key Metrics Changes - Total revenue was $105 million, an increase of $14 million for the quarter and 30% year-on-year [1] - Net interest income increased by $16 million or 21% due to higher loan balances [1] - Noninterest income declined primarily due to a negative fair value mark on servicing assets, despite increased gain on sale revenue [1] - Operating expenses, including merger-related charges, were $58 million for the quarter, up 17% [1] - Excluding charges, operating expenses were $51 million, marking a 6.8% increase from the prior quarter [1] Business Line Data and Key Metrics Changes - The government-guaranteed lending business had commitments closed totaling $113 million, indicating healthy business development activity [2] - Total loans and leases increased to $6.6 billion, with an increase of $1 billion from the prior quarter, largely due to the Inland merger [81] - Non-interest income stood at $12.4 million, down $1.9 million linked quarter, primarily due to a negative fair value mark on loan servicing assets [83] Market Data and Key Metrics Changes - Deposits increased to $7 billion, up $1 billion largely due to the transaction, with a linked quarter increase of $74.4 million or 5.8% [2][82] - The allowance for credit losses as a percentage of unguaranteed loan balances was 8.1%, lower due to loan upgrades and payoffs [4] Company Strategy and Development Direction - The company remains disciplined in expense management and is on track to meet projected cost savings, with non-interest expense guidance unchanged at $53 million to $55 million per quarter [6] - The company aims to differentiate itself in the marketplace and deliver results for customers and stockholders despite significant uncertainties in the environment [8] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the ability to continue delivering strong results despite uncertainties in the economy [8] - The company is focused on executing its strategy and expects capital levels to grow given its earnings outlook [85] Other Important Information - The merger added approximately $1 billion in deposits and $800 million in loans, enhancing the company's market position [96] - The company reported net income of $28 million or $0.65 per share, with adjusted net income of $33 million or $0.77 per diluted share, marking significant increases [78] Q&A Session Summary Question: Inquiry about margin and core number adjustments - Management confirmed that the core margin is trending lower from the third quarter to the fourth quarter, with adjustments made for nonrecurring items [10][14] Question: Concerns about credit quality and areas of focus - Management noted that while the office sector is under scrutiny, other asset classes remain stable, with no significant issues reported [21][51] Question: Discussion on M&A opportunities - Management acknowledged the challenges in the current M&A landscape but remains open to opportunities, particularly in light of larger players shrinking their portfolios [38][64]

Byline Bancorp, Inc. Forward-Looking Statements 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 forw ...

☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended June 30, 2023 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from ______to ______ Commission File Number 001-38139 BYLINE BANCORP, INC. | --- | --- | --- | |-----------------------|----------------------------------------------------------------------------------------------------------------------------------------- ...

Byline Bancorp, Inc. (NYSE:BY) Q2 2023 Earnings Conference Call July 28, 2023 10:00 AM ET Company Participants Brooks Rennie - Head, IR Alberto Paracchini - President Roberto Herencia - Chairman, CEO Thomas Bell - CFO and Treasurer Mark Fucinato - Chief Credit Officer Conference Call Participants Nathan Race - Piper Sandler Ben Gerlinger - Hovde Group Terry McEvoy - Stephens Brian Martin - Janney Montgomery Scott Damon DelMonte - KBW Operator Good morning, and welcome to the Byline Bancorp Second Quarter 20 ...

GAAP Reconciliation and Management Explanation of Non-GAAP Financial Measures 73 • "Total revenue" is the combination of 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. • "Tangible book value per common 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 outstandin ...

Byline Bancorp, Inc. (NYSE:BY) Q1 2023 Results Conference Call April 28, 2023 10:00 AM ET Company Participants Brooks Rennie - Head, IR Alberto Paracchini - President Roberto Herencia - Chairman, CEO Thomas Bell - CFO, Treasurer Mark Fucinato - Chief Credit Officer Conference Call Participants Ben Gerlinger - Hovde Group Brian Martin - Janney Damon DelMonte - KBW Nate Race - Piper Sandler Terry McEvoy - Stephens Operator Good morning, and welcome to Byline Bancorp First Quarter 2023 Earnings Call. My name ...

PART I [Business](index=5&type=section&id=Item%201.%20Business) The company is a bank holding company pursuing growth via organic expansion, acquisitions, and specialized lending services Consolidated Financial Highlights (as of December 31, 2022) | Metric | Value (USD) | | :--- | :--- | | Total Assets | $7.4 billion | | Total Gross Loans and Leases | $5.5 billion | | Total Deposits | $5.7 billion | | Total Stockholders' Equity | $765.8 million | - The company's strategic growth plan involves both organic expansion and acquisitions, with a **significant pending acquisition of Inland Bancorp, Inc**[11](index=11&type=chunk)[17](index=17&type=chunk) - Byline Bank is a prominent U.S. government guaranteed lender, ranked as the **fifth most active SBA loan originator in the U.S.** for fiscal year 2022[21](index=21&type=chunk)[73](index=73&type=chunk) - The company operates as a **single reportable segment**, with performance evaluated on a consolidated basis[14](index=14&type=chunk)[137](index=137&type=chunk) - Human capital management is a key focus, with initiatives in diversity, equity, and inclusion (DEI) and a **minimum starting wage of $18/hour**[28](index=28&type=chunk)[29](index=29&type=chunk)[31](index=31&type=chunk) - The company is subject to extensive regulation by the **Federal Reserve Board (FRB), FDIC, and IDFPR**[51](index=51&type=chunk)[52](index=52&type=chunk) [Risk Factors](index=24&type=section&id=Item%201A.%20Risk%20Factors) The company faces material risks including credit and interest rate fluctuations, liquidity, operational challenges, and cybersecurity threats - The company's business is highly dependent on managing credit risk, as underestimating the **allowance for credit losses**, a risk amplified by the CECL standard, could materially affect financial results[300](index=300&type=chunk)[314](index=314&type=chunk) - **Fluctuations in interest rates** pose a significant risk to net interest income, and the company is managing the transition from LIBOR to alternative rates like SOFR[293](index=293&type=chunk)[315](index=315&type=chunk)[316](index=316&type=chunk) - Liquidity risk is a key concern, as the company relies heavily on **customer deposits for funding** and dividends from its bank subsidiary[319](index=319&type=chunk)[321](index=321&type=chunk)[367](index=367&type=chunk) - The business has significant exposure to real estate markets, particularly in the **Chicago metropolitan area**, where a large portion of its loan portfolio is secured[312](index=312&type=chunk)[344](index=344&type=chunk) - **Cybersecurity threats** and reliance on third-party technology systems present major operational risks that could lead to financial loss and reputational damage[313](index=313&type=chunk)[345](index=345&type=chunk)[346](index=346&type=chunk) - The government guaranteed lending program is vital to the business and dependent on the U.S. federal government; changes to the **SBA program** could materially harm financial results[327](index=327&type=chunk)[328](index=328&type=chunk)[348](index=348&type=chunk) [Unresolved Staff Comments](index=35&type=section&id=Item%201B.%20Unresolved%20Staff%20Comments) The company reports that there are no unresolved staff comments from the SEC - There are **no unresolved staff comments** as of the report date[383](index=383&type=chunk) [Properties](index=35&type=section&id=Item%202.%20Properties) The company operates 38 branches, primarily in the Chicago area, with a mix of owned and leased properties - The company's corporate headquarters is located at **180 North LaSalle Street, Suite 300, Chicago, IL 60601**[372](index=372&type=chunk) - The network consists of **38 branch offices**, with 37 in the Chicago metropolitan area and one in Wisconsin; ten properties are leased and the rest are owned[372](index=372&type=chunk)[401](index=401&type=chunk) [Legal Proceedings](index=35&type=section&id=Item%203.%20Legal%20Proceedings) The company is not party to any legal proceedings expected to have a material adverse effect on its business - The company is not currently a party to any legal proceedings that are expected to have a **material adverse effect** on its business or financial condition[373](index=373&type=chunk) [Mine Safety Disclosures](index=35&type=section&id=Item%204.%20Mine%20Safety%20Disclosures) This item is not applicable to the company - Not applicable[373](index=373&type=chunk) PART II [Market for Registrant's Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities](index=36&type=section&id=Item%205.%20Market%20for%20Registrant%27s%20Common%20Equity%2C%20Related%20Stockholder%20Matters%20and%20Issuer%20Purchases%20of%20Equity%20Securities) The company's stock trades on the NYSE, it paid quarterly dividends in 2022, and manages share repurchases via authorized programs - The company's common stock is listed on the New York Stock Exchange under the ticker symbol **"BY"**[385](index=385&type=chunk) - In 2022, the company paid a quarterly cash dividend of **$0.09 per common share**[387](index=387&type=chunk) - A stock repurchase program expired on December 31, 2022, after repurchasing **689,068 shares for $17.3 million** in 2022; a new program for up to 1,250,000 shares is effective for 2023[388](index=388&type=chunk) Stock Performance Comparison (Cumulative Total Return) | Index | 12/31/2017 | 12/31/2018 | 12/31/2019 | 12/31/2020 | 12/31/2021 | 12/31/2022 | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Byline Bancorp, Inc. | $100.00 | $72.53 | $85.33 | $68.07 | $122.05 | $104.05 | | Russel 2000 | $100.00 | $88.99 | $111.70 | $134.00 | $153.85 | $122.41 | | S&P U.S. Small Cap Bank | $100.00 | $83.44 | $104.69 | $95.08 | $132.36 | $116.69 | | KRX | $100.00 | $80.63 | $97.07 | $85.33 | $113.65 | $102.90 | [Management's Discussion and Analysis of Financial Condition and Results of Operations](index=38&type=section&id=Item%207.%20Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Net income declined in 2022 due to higher credit loss provisions, despite growth in net interest income, assets, and deposits Key Performance Indicators (2022 vs. 2021) | Metric | 2022 | 2021 | | :--- | :--- | :--- | | Net Income | $88.0 million | $92.8 million | | Diluted EPS | $2.34 | $2.40 | | Net Interest Income | $265.3 million | $236.4 million | | Provision for Credit Losses | $23.9 million | $0.97 million | | Non-interest Income | $57.3 million | $74.3 million | | Return on Average Assets | 1.25% | 1.40% | | Return on Average Equity | 11.33% | 11.31% | - The company adopted the **CECL accounting standard** on December 31, 2022, resulting in a $12.2 million cumulative effective adjustment to the allowance for credit losses[314](index=314&type=chunk)[573](index=573&type=chunk) - **Net interest margin increased by 16 basis points to 4.00%** in 2022, driven by higher yields on interest-earning assets[436](index=436&type=chunk) - **Total assets grew by 10.0% to $7.4 billion**, primarily due to a $884.1 million (19.5%) increase in the loan and lease portfolio[473](index=473&type=chunk) - The **allowance for credit losses to total loans increased to 1.51%** at year-end 2022, reflecting loan growth and increased economic uncertainty[85](index=85&type=chunk)[449](index=449&type=chunk) [Quantitative and Qualitative Disclosures About Market Risk](index=65&type=section&id=Item%207A.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) The company's primary market risk is interest rate risk, which is actively managed using simulation models and derivatives Net Interest Income Sensitivity to Immediate Rate Shifts (Year 1) | Rate Change (basis points) | % Change in NII | Dollar Amount (in thousands) | | :--- | :--- | :--- | | +300 | 20.0% | $394,141 | | +200 | 13.7% | $373,466 | | +100 | 6.9% | $350,860 | | -100 | (5.1)% | $311,543 | | -200 | (13.4)% | $284,510 | | -300 | (22.8)% | $253,536 | - The company's primary market risk is **interest rate risk**, managed by the Board of Directors and management's asset liability committees[506](index=506&type=chunk) - As of December 31, 2022, the company had an outstanding notional amount of **$1.1 billion in interest rate derivatives** to manage interest rate exposure[506](index=506&type=chunk) [Financial Statements and Supplementary Data](index=67&type=section&id=Item%208.%20Financial%20Statements%20and%20Supplementary%20Data) This section includes audited financial statements with an unqualified opinion and notes the adoption of CECL as a Critical Audit Matter - The independent auditor, Moss Adams LLP, issued an **unqualified opinion** on the consolidated financial statements and internal controls as of December 31, 2022[513](index=513&type=chunk) - The auditor identified the adoption of the **CECL standard** and the related estimation of the allowance for credit losses as a **Critical Audit Matter**[101](index=101&type=chunk)[102](index=102&type=chunk) Consolidated Statements of Financial Condition (in thousands) | Account | Dec 31, 2022 | Dec 31, 2021 | | :--- | :--- | :--- | | **Assets** | | | | Total loans and leases, net | $5,339,334 | $4,482,116 | | Securities | $1,185,125 | $1,469,005 | | Goodwill | $148,353 | $148,353 | | **Total Assets** | **$7,362,941** | **$6,696,172** | | **Liabilities & Equity** | | | | Total deposits | $5,695,121 | $5,155,047 | | Borrowings | $751,428 | $630,146 | | **Total Liabilities** | **$6,597,125** | **$5,859,790** | | **Total Stockholders' Equity** | **$765,816** | **$836,382** | Consolidated Statements of Operations (in thousands) | Account | 2022 | 2021 | 2020 | | :--- | :--- | :--- | :--- | | Net Interest Income | $265,330 | $236,387 | $214,978 | | Provision for Credit Losses | $23,879 | $973 | $56,677 | | Non-interest Income | $57,314 | $74,253 | $62,060 | | Non-interest Expense | $184,082 | $185,455 | $168,694 | | **Net Income** | **$87,954** | **$92,785** | **$37,467** | [Changes in and Disagreements With Accountants on Accounting and Financial Disclosure](index=131&type=section&id=Item%209.%20Changes%20in%20and%20Disagreements%20With%20Accountants%20on%20Accounting%20and%20Financial%20Disclosure) The company reports no changes in or disagreements with its accountants on accounting or financial disclosure matters - There were **no disagreements with accountants** on accounting and financial disclosure[542](index=542&type=chunk)[789](index=789&type=chunk) [Controls and Procedures](index=131&type=section&id=Item%209A.%20Controls%20and%20Procedures) Management concluded that the company's disclosure controls, procedures, and internal controls over financial reporting were effective - Management concluded that the company's **disclosure controls and procedures were effective** as of December 31, 2022[557](index=557&type=chunk) - Based on the COSO framework, management determined that the company maintained **effective internal control over financial reporting** as of December 31, 2022[790](index=790&type=chunk) - **No material changes** in internal control over financial reporting occurred during the fourth quarter of 2022[558](index=558&type=chunk) [Other Information](index=131&type=section&id=Item%209B.%20Other%20Information) The company reports no other information for this item - None[558](index=558&type=chunk) PART III [Directors, Executive Officers and Corporate Governance](index=131&type=section&id=Item%2010.%20Directors%2C%20Executive%20Officers%20and%20Corporate%20Governance) Information on directors, officers, and governance is incorporated by reference from the 2023 Proxy Statement - Information regarding directors, executive officers, and corporate governance is **incorporated by reference** from the company's upcoming 2023 Proxy Statement[746](index=746&type=chunk) [Executive Compensation](index=132&type=section&id=Item%2011.%20Executive%20Compensation) Details on executive compensation are incorporated by reference from the company's 2023 Proxy Statement - Information regarding executive compensation is **incorporated by reference** from the company's upcoming 2023 Proxy Statement[779](index=779&type=chunk) [Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters](index=132&type=section&id=Item%2012.%20Security%20Ownership%20of%20Certain%20Beneficial%20Owners%20and%20Management%20and%20Related%20Stockholder%20Matters) Information on security ownership and equity compensation plans is incorporated by reference from the 2023 Proxy Statement - Information regarding security ownership is **incorporated by reference** from the company's upcoming 2023 Proxy Statement[546](index=546&type=chunk) Equity Compensation Plan Information as of December 31, 2022 | Plan Category | Securities to be issued upon exercise/vesting | Weighted-average exercise price of options | Securities remaining for future issuance | | :--- | :--- | :--- | :--- | | Plans approved by stockholders | 581,337 | N/A | 416,065 | | Plans not approved by stockholders | 930,852 | $11.40 (approx.) | — | | **Total** | **1,512,189** | | **416,065** | [Certain Relationships and Related Transactions, and Director Independence](index=133&type=section&id=Item%2013.%20Certain%20Relationships%20and%20Related%20Transactions%2C%20and%20Director%20Independence) Details on related party transactions and director independence are incorporated by reference from the 2023 Proxy Statement - Information regarding related transactions and director independence is **incorporated by reference** from the company's upcoming 2023 Proxy Statement[547](index=547&type=chunk) [Principal Accounting Fees and Services](index=133&type=section&id=Item%2014.%20Principal%20Accounting%20Fees%20and%20Services) Information on fees paid to the independent auditor is incorporated by reference from the 2023 Proxy Statement - Information regarding principal accounting fees and services is **incorporated by reference** from the company's upcoming 2023 Proxy Statement[562](index=562&type=chunk) PART IV [Exhibits, Financial Statement Schedules](index=134&type=section&id=Item%2015.%20Exhibits%2C%20Financial%20Statement%20Schedules) This section lists all exhibits filed with the report, noting that financial schedules are omitted as they are not applicable - This item lists the financial statements and exhibits filed with the annual report; **financial statement schedules have been omitted** as they are not applicable or the information is included elsewhere[782](index=782&type=chunk) [Form 10-K Summary](index=135&type=section&id=Item%2016.%20Form%2010-K%20Summary) The company reports no summary for this item - None[798](index=798&type=chunk)