Byline Bancorp, Inc. Reports First Quarter 2020 Financial Results

Byline Bancorp, Inc. (the “Company” or “Byline”)(NYSE: BY), the parent company of Byline Bank (the “Bank”), today reported net income of $3.0 million, or $0.07 per diluted share, for the first quarter of 2020, compared with net income of $15.9 million, or $0.41 per diluted share, for the fourth quarter of 2019, and net income of $12.6 million, or $0.34 per diluted share, for the first quarter of 2019.

Adjusted net income, which is net income excluding merger-related expenses, core system conversion expenses, and impairment charges on assets held for sale, net of tax, was $3.5 million, or $0.09 per adjusted diluted share¹, for the first quarter of 2020, compared with $16.1 million, or $0.42 per adjusted diluted share, for the fourth quarter of 2019, and $14.0 million, or $0.38 per adjusted diluted share, for the first quarter of 2019. 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, “Since the emergence of the COVID-19 pandemic, we have been focused on protecting the health and safety of our employees and clients, while constructively working with our borrowers to identify the best solutions for helping them manage through this crisis. We have put in place a number of relief programs to support our clients, including participating in the Small Business Administration’s (“SBA”) Paycheck Protection Program (“PPP”). As one of the largest SBA lenders in the country, we were able to provide our clients with access to the PPP, and through April 29th, we have received approvals on $716.4 million in PPP loans with $385.8 million funded to date. I’m proud of the work our team did during this challenging time to establish our PPP process and support our clients."

“Although the duration and severity of the COVID-19 pandemic is uncertain, we are well positioned from a capital and liquidity standpoint to support our clients and the communities we serve during this unprecedented period. Byline is committed to being a source of strength to our customers, employees, and communities during this uncertain time,” 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.

Byline’s Preparations and Response to Pandemic

As part of our ongoing business continuity and risk management efforts, we had previously developed a detailed plan and action measures related to a possible pandemic scenario. Our incident response team was activated on February 29, 2020 and began implementing our plan. We initiated a series of measures to ensure the safety of employees, customers, and communities, to support customer needs, and to limit operational disruptions. Our Board of Directors and management teams continue to monitor and, when appropriate, make changes to our planned response. To date we have:

• Maximized social distancing protocols by augmenting business hours and the locations of employee teams.
  • 100% of our non-retail employees have the ability to work from home.
  • Drive-thru only locations for 25 branches, 16 full service branches with lobby hours by appointment, and 19 branches temporarily closed.
• Refreshed and analyzed our liquidity, funding, and capital stress forecasts including updated risk assumptions.
• Proactively engaged our customers and borrowers to identify short-term cash flow and other financial needs.
  • Approved approximately $395.7 million in payment deferrals to date, or 10.3% of loans and leases at March 31, 2020.
  • Established customer strategy to process PPP loans efficiently through our existing SBA platform.
    • Registered over 1,400 loans totaling $372.7 million during phase one.
    • Phase two began on April 27, 2020, with over 2,150 loans registered representing $343.7 million.
  • Waived or refunded certain fees, including early withdrawal fees on time deposits.
• Took action to pause common share repurchase activities amid the uncertainty of the pandemic.
• Continued to serve our customers through our call center, online, and mobile banking platforms.

STATEMENTS OF OPERATIONS

Net Interest Income

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

		Three Months Ended
(dollars in thousands)		March 31, 2020				December 31, 2019				September 30, 2019				June 30, 2019				March 31, 2019
INTEREST AND DIVIDEND INCOME
Interest and fees on loans and leases		$	54,158			$	58,203			$	63,391			$	59,524			$	54,383
Interest on securities			8,016				7,212				7,040				6,665				6,102
Other interest and dividend income			992				500				598				571				625
Total interest and dividend income			63,166				65,915				71,029				66,760				61,110
INTEREST EXPENSE
Deposits			7,804				9,325				9,618				9,306				8,076
Short-term borrowings			1,897				1,989				2,835				2,265				2,166
Junior subordinated debentures issued to capital trusts			640				687				738				741				783
Total interest expense			10,341				12,001				13,191				12,312				11,025
Net interest income		$	52,825			$	53,914			$	57,838			$	54,448			$	50,085

The following table presents the average interest-earning assets and average interest-bearing liabilities for the periods indicated:

		For the Three Months Ended
		March 31, 2020												December 31, 2019
(dollars in thousands)		Average Balance(5)				Interest Inc / Exp				Average Yield / Rate				Average Balance(5)				Interest Inc / Exp				Average Yield / Rate
ASSETS
Cash and cash equivalents		$	38,934			$	157				1.63	%		$	38,624			$	220				2.25	%
Loans and leases(1)			3,799,213				54,158				5.73	%			3,807,731				58,203				6.06	%
Taxable securities			1,175,120				8,316				2.85	%			1,025,975				6,963				2.69	%
Tax-exempt securities(2)			84,679				535				2.54	%			84,640				529				2.48	%
Total interest-earning assets		$	5,097,946			$	63,166				4.98	%		$	4,956,970			$	65,915				5.28	%
Allowance for loan and lease losses			(33,664	)											(32,688	)
All other assets			501,670												502,764
TOTAL ASSETS		$	5,565,952											$	5,427,046
LIABILITIES AND STOCKHOLDERS’ EQUITY
Deposits
Interest checking		$	338,905			$	260				0.31	%		$	399,065			$	612				0.61	%
Money market accounts			962,205				2,214				0.93	%			790,565				1,945				0.98	%
Savings			480,270				61				0.05	%			474,394				63				0.05	%
Time deposits			1,113,596				5,269				1.90	%			1,231,641				6,705				2.16	%
Total interest-bearing deposits			2,894,976				7,804				1.08	%			2,895,665				9,325				1.28	%
Short-term borrowings			521,108				1,897				1.46	%			414,515				1,989				1.90	%
Junior subordinated debentures issued to capital trusts			37,385				640				6.88	%			37,254				687				7.32	%
Total borrowings			558,493				2,537				1.83	%			451,769				2,676				2.35	%
Total interest-bearing liabilities		$	3,453,469			$	10,341				1.20	%		$	3,347,434			$	12,001				1.42	%
Non-interest-bearing demand deposits			1,298,800												1,288,960
Other liabilities			48,256												44,907
Total stockholders’ equity			765,427												745,745
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY		$	5,565,952											$	5,427,046
Net interest spread(3)											3.78	%											3.86	%
Net interest income						$	52,825											$	53,914
Net interest margin(4)											4.17	%											4.32	%
Net loan accretion impact on margin						$	3,671				0.29	%						$	5,418				0.43	%

(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.

Net interest income for the first quarter of 2020 was $52.8 million, a decrease of $1.1 million, or 2.0%, from $53.9 million for the fourth quarter of 2019.

The decrease in net interest income was primarily due to:

• A decrease of $4.0 million in interest and fees on loans and leases, mainly due to a $1.7 million decrease in accretion income on acquired loans.

Partially offset by:

• A decrease of $1.5 million in interest expense on deposits, as a result of lower average time deposit balances and cost attributable to maturities of higher-rate time deposits; and
• An increase of $1.3 million in interest income on securities principally as a result of purchases of mortgage-backed securities during the quarter.

Net interest margin for the first quarter of 2020 was 4.17%, a decrease of 15 basis points compared to 4.32% for the fourth quarter of 2019. Total net accretion income on acquired loans contributed 29 basis points to the net interest margin for the first quarter of 2020 compared to 43 basis points for the fourth quarter of 2019, a decrease of 14 basis points. The net interest margin decrease during the first quarter of 2020 was primarily driven by decreased loan and lease yields largely resulting from decreased loan accretion income partly offset by a decrease in the cost of funds as a result of decreases in short-term rates.

The average cost of total deposits was 0.75% for the first quarter of 2020, a decrease of 13 basis points compared to the fourth quarter of 2019, mainly due to a lower average cost of time deposits and interest-bearing checking accounts as well as a favorable change in deposit mix. Average money market accounts grew by $171.6 million while average time deposits decreased by $118.0 million.

Provision for Loan and Lease Losses

The provision for loan and lease losses was $14.5 million for the first quarter of 2020, an increase of $10.1 million compared to $4.4 million for the fourth quarter of 2019. The first quarter included allocations of $10.3 million for originated loans and leases, $2.7 million for acquired non-impaired loans, and $1.5 million for acquired impaired loans. The provision during the first quarter of 2020 for originated loans reflects increased impairments on commercial and industrial and commercial real estate loans, growth in the commercial and industrial portfolio during the quarter, and allocations of $6.3 million made to address the impact of the COVID-19 pandemic.

Non-interest Income

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

		Three Months Ended
(dollars in thousands)		March 31, 2020				December 31, 2019				September 30, 2019				June 30, 2019				March 31, 2019
NON-INTEREST INCOME
Fees and service charges on deposits		$	1,673			$	1,635			$	1,612			$	1,441			$	1,770
Loan servicing revenue			2,758				2,834				2,692				2,630				2,539
Loan servicing asset revaluation			(3,064	)			(2,545	)			(1,610	)			(1,223	)			(1,261	)
ATM and interchange fees			1,216				1,150				973				945				717
Net gains on sales of securities available-for-sale			1,375				—				178				973				—
Change in fair value of equity securities, net			(619	)			381				(15	)			551				499
Net gains on sales of loans			4,773				8,735				9,405				7,472				6,233
Wealth management and trust income			669				704				653				626				595
Other non-interest income			392				1,622				918				768				896
Total non-interest income		$	9,173			$	14,516			$	14,806			$	14,183			$	11,988

Non-interest income for the first quarter of 2020 was $9.2 million, a decrease of $5.3 million, or 36.8%, compared to $14.5 million for the fourth quarter of 2019.

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

• A decrease of $4.0 million in net gains on sales of loans, mainly due to a decrease in volume of sales of government guaranteed loans;
• A decrease of $1.2 million in other non-interest income, mostly due to a decline in the fair value of non-designated swaps; and
• A decrease in the change in fair value of equity securities, net, of $1.0 million due to a decrease in the fair value of those securities.

Partially offset by:

• An increase of $1.4 million in net gains on sales of securities available-for-sale as a result of sales during the quarter compared to no sales in the prior quarter.

During the first quarter of 2020, the Company sold $61.0 million of U.S. government guaranteed loans compared to $101.5 million during the fourth quarter of 2019. The decrease in sales is principally driven by a decrease in originations as well as a decrease in premiums as a result of the COVID-19 pandemic.

Non-interest Expense

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

		Three Months Ended
(dollars in thousands)		March 31, 2020				December 31, 2019				September 30, 2019				June 30, 2019				March 31, 2019
NON-INTEREST EXPENSE
Salaries and employee benefits		$	24,666			$	24,228			$	24,537			$	23,652			$	22,892
Occupancy and equipment expense, net			5,524				5,241				4,512				5,069				4,949
Loan and lease related expenses			1,311				2,648				1,949				1,841				1,577
Legal, audit and other professional fees			2,334				2,340				4,066				2,981				2,066
Data processing			2,665				2,678				4,062				3,849				3,144
Net loss recognized on other real estate owned and other related expenses			519				122				95				252				196
Other intangible assets amortization expense			1,893				2,002				2,003				1,959				1,773
Other non-interest expense			4,615				4,435				4,224				4,351				4,082
Total non-interest expense		$	43,527			$	43,694			$	45,448			$	43,954			$	40,679

Non-interest expense for the first quarter of 2020 was $43.5 million, a decrease of $167,000, or 0.4%, from $43.7 million for the fourth quarter of 2019.

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

• A decrease of $1.3 million in loan and lease related expenses due to lower loan expenses on government guaranteed loans and lower loan collection expense.

Partially offset by:

• An increase of $438,000 in salaries and employee benefits, mainly due to higher payroll taxes and increased employer costs related to benefits, partially offset by a decrease in commissions; and
• An increase of $397,000 in net loss recognized on other real estate owned and other related expenses mostly due to a decrease in gains recognized on other real estate owned, partially offset by lower real estate tax expenses.

The Company’s efficiency ratio was 67.16% for the first quarter of 2020, compared with 60.93% for the fourth quarter of 2019. Excluding merger-related expenses, core system conversion expenses, and impairment charges on assets held for sale, the Company’s adjusted efficiency ratio¹ was 66.00% for the first quarter of 2020, compared with 60.51% for the fourth quarter of 2019. The increase in the efficiency ratio was primarily driven by the decline in non-interest income.

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.

INCOME TAXES

The Company recorded income tax expense of $1.1 million during the first quarter of 2020, an effective tax rate of 26.1%, compared to $4.5 million during the fourth quarter of 2019, an effective tax rate of 22.1%. The effective tax rate during the fourth quarter of 2019 benefited from the recognition of tax assets associated with other real estate owned.

STATEMENTS OF FINANCIAL CONDITION

Total assets were $5.7 billion at March 31, 2020, an increase of $212.9 million compared to $5.5 billion at December 31, 2019, and an increase of $724.8 million compared to $5.0 billion at March 31, 2019. The increase from March 31, 2019 was mostly due to the assets acquired through the Oak Park River Forest acquisition.

The current quarter increase was primarily due to:

• An increase in securities of $112.6 million, reflecting purchases of securities during the quarter; and
• An increase in loans and leases of $74.6 million, mostly due to an increase of $149.0 million in our originated loan portfolio, partially offset by a decrease of $74.4 million in our acquired loan portfolios as a result of paydowns.

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

		March 31, 2020								December 31, 2019								March 31, 2019
(dollars in thousands)		Amount				% of Total				Amount				% of Total				Amount				% of Total
Originated loans and leases
Commercial real estate		$	839,244				21.7	%		$	792,263				20.9	%		$	738,832				20.7	%
Residential real estate			480,946				12.5	%			483,072				12.8	%			494,877				13.9	%
Construction, land development, and other land			242,001				6.3	%			235,794				6.2	%			181,427				5.1	%
Commercial and industrial			1,263,688				32.7	%			1,160,996				30.7	%			900,709				25.2	%
Installment and other			4,594				0.1	%			5,372				0.1	%			11,082				0.3	%
Leasing financing receivables			154,173				4.0	%			158,155				4.2	%			160,607				4.5	%
Total originated loans and leases		$	2,984,646				77.3	%		$	2,835,652				74.9	%		$	2,487,534				69.7	%
Acquired impaired loans
Commercial real estate		$	127,895				3.3	%		$	135,914				3.6	%		$	141,199				4.0	%
Residential real estate			94,198				2.5	%			100,223				2.7	%			106,764				3.0	%
Construction, land development, and other land			5,291				0.1	%			5,373				0.1	%			3,111				0.1	%
Commercial and industrial			15,808				0.4	%			16,909				0.4	%			11,963				0.3	%
Installment and other			236				0.0	%			249				0.0	%			374				0.0	%
Total acquired impaired loans		$	243,428				6.3	%		$	258,668				6.8	%		$	263,411				7.4	%
Acquired non-impaired loans and leases
Commercial real estate		$	327,820				8.5	%		$	348,365				9.2	%		$	382,252				10.7	%
Residential real estate			118,853				3.1	%			128,527				3.4	%			97,395				2.8	%
Construction, land development, and other land			30,484				0.8	%			37,490				1.0	%			29,121				0.8	%
Commercial and industrial			135,063				3.5	%			153,660				4.1	%			277,146				7.8	%
Installment and other			891				0.0	%			944				0.0	%			1,346				0.0	%
Leasing financing receivables			19,074				0.5	%			22,355				0.6	%			29,361				0.8	%
Total acquired non-impaired loans and leases		$	632,185				16.4	%		$	691,341				18.3	%		$	816,621				22.9	%
Total loans and leases		$	3,860,259				100.0	%		$	3,785,661				100.0	%		$	3,567,566				100.0	%
Allowance for loan and lease losses			(41,840	)							(31,936	)							(27,106	)
Total loans and leases, net of allowance for loan and lease losses		$	3,818,419							$	3,753,725							$	3,540,460

ASSET QUALITY

Non-Performing Assets

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

(dollars in thousands)		March 31, 2020				December 31, 2019				September 30, 2019				June 30, 2019				March 31, 2019
Non-performing assets:
Non-accrual loans and leases		$	48,964			$	36,272			$	39,528			$	34,027			$	28,539
Past due loans and leases 90 days or more and still accruing interest			—				—				—				996				—
Accruing troubled debt restructured loans			1,725				1,771				2,204				1,529				1,921
Total non-performing loans and leases			50,689				38,043				41,732				36,552				30,460
Other real estate owned			9,273				9,896				6,502				6,531				4,595
Total non-performing assets		$	59,962			$	47,939			$	48,234			$	43,083			$	35,055
Total non-performing loans and leases as a percentage of total loans and leases			1.31	%			1.00	%			1.09	%			0.95	%			0.85	%
Total non-performing assets as a percentage of total assets			1.05	%			0.87	%			0.89	%			0.80	%			0.70	%
Allowance for loan and lease losses as a percentage of non-performing loans and leases			82.54	%			83.95	%			75.68	%			85.17	%			88.99	%
Non-performing assets guaranteed by U.S. government:
Non-accrual loans guaranteed		$	4,957			$	4,232			$	4,167			$	4,723			$	5,070
Past due loans 90 days or more and still accruing interest guaranteed			—				—				—				—				—
Accruing troubled debt restructured loans guaranteed			—				—				—				—				—
Total non-performing loans guaranteed		$	4,957			$	4,232			$	4,167			$	4,723			$	5,070
Total non-performing loans and leases not guaranteed as a percentage of total loans and leases			1.18	%			0.89	%			0.98	%			0.82	%			0.71	%
Total non-performing assets not guaranteed as a percentage of total assets			0.96	%			0.79	%			0.81	%			0.71	%			0.60	%

Variances in non-performing assets were:

• Non-performing loans and leases were $50.7 million at March 31, 2020, an increase of $12.7 million from $38.0 million at December 31, 2019, principally due to increases, as follows:
  • $5.1 million in commercial and industrial loans,
  • $3.8 million in commercial real estate loans, and
  • $2.6 million in construction, land development and other land loans; and
• Other real estate owned was $9.3 million at March 31, 2020, a decrease of $623,000 from $9.9 million at December 31, 2019 due to sales and valuation adjustments.

U.S. government guaranteed balances of non-performing loans were $5.0 million at March 31, 2020 and $4.2 million at December 31, 2019.

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
(dollars in thousands)		March 31, 2020				December 31, 2019				September 30, 2019				June 30, 2019				March 31, 2019
Allowance for loan and lease losses, beginning of period		$	31,936			$	31,585			$	31,132			$	27,106			$	25,201
Provision for loan and lease losses			14,455				4,387				5,931				6,391				3,999
Net charge-offs of loans and leases			(4,551	)			(4,036	)			(5,478	)			(2,365	)			(2,094	)
Allowance for loan and lease losses, end of period		$	41,840			$	31,936			$	31,585			$	31,132			$	27,106
Allowance for loan and lease losses to period end total loans and leases held for investment			1.08	%			0.84	%			0.82	%			0.81	%			0.76	%
Net charge-offs (annualized) to average loans and leases outstanding during the period			0.48	%			0.42	%			0.56	%			0.25	%			0.24	%
Provision for loan and lease losses to net charge-offs during the period		3.18x				1.09x				1.08x				2.70x				1.91x

The allowance for loan and lease losses as a percentage of total loans and leases held for investment increased to 1.08% at March 31, 2020 compared to 0.84% at December 31, 2019 and 0.76% at March 31, 2019.

In June 2016, the Financial Accounting Standards Board (“FASB”) issued new guidance on the recognition of credit losses which replaces the incurred loss impairment methodology with a methodology that reflects expected credit losses. In November 2019, the FASB delayed the effective date of the standard for smaller reporting companies, which includes emerging growth companies. Assuming the Company remains an emerging growth company, the standard is effective for fiscal years beginning after December 15, 2022. The Company is in process of implementation and determining the impact that this new authoritative guidance will have on the Company’s consolidated financial statements.

Net Charge-Offs

Net charge-offs during the first quarter of 2020 were $4.6 million, or 0.48% of average loans and leases, on an annualized basis, an increase of $515,000 compared to $4.0 million, or 0.42% of average loans and leases, during the fourth quarter of 2019, and an increase of $2.5 million from $2.1 million, or 0.24%, for the comparable quarter one year ago.

The net charge-offs during the quarter were primarily attributed to the unguaranteed portion of U.S. government guaranteed loans. Net charge-offs for the first quarter of 2020 included $3.4 million in the unguaranteed portion of U.S. government guaranteed loans, while net charge-offs for the fourth quarter of 2019 included $3.6 million and first quarter of 2019 included $1.7 million 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:

(dollars in thousands)		March 31, 2020				December 31, 2019				September 30, 2019				June 30, 2019				March 31, 2019
Non-interest-bearing demand deposits		$	1,290,896			$	1,279,641			$	1,221,431			$	1,240,375			$	1,163,255
Interest-bearing checking accounts			355,678				338,185				372,049				345,081				305,393
Money market demand accounts			1,104,276				881,387				745,154				728,954				611,634
Other savings			486,131				475,839				471,878				480,756				468,524
Time deposits (below $250,000)			800,759				916,723				966,866				980,162				967,999
Time deposits ($250,000 and above)			201,096				255,802				302,936				284,915				291,711
Total deposits		$	4,238,836			$	4,147,577			$	4,080,314			$	4,060,243			$	3,808,516

Total deposits were $4.2 billion at March 31, 2020, an increase of $91.3 million compared to December 31, 2019, an increase of 2.2%. Non-interest-bearing deposits were 30.5% of total deposits at March 31, 2020 compared to 30.9% at December 31, 2019.

The increase in the current quarter was primarily due to:

• An increase in money market demand deposits of $222.9 million, from $881.4 million at December 31, 2019 to $1.1 billion at March 31, 2020, largely driven by growth in business and brokered account balances.

Partially offset by:

• A decrease in time deposits of $170.7 million, from $1.2 billion at December 31, 2019 to $1.0 billion at March 31, 2020, principally driven by decreases in personal and brokered certificates.

Total borrowings and other liabilities were $733.3 million at March 31, 2020, an increase of $109.1 million from $624.1 million at December 31, 2019, driven by an increase in short-term borrowings of $101.0 million as a result of the Company testing liquidity resources.

Stockholders’ Equity

Total stockholders’ equity was $762.7 million at March 31, 2020, an increase of $12.6 million from $750.1 million at December 31, 2019. The increase was due to the increase in accumulated other comprehensive income reflecting the unrealized gains in our available-for-sale securities portfolio in addition to net income generated during the quarter less dividends declared.

Stockholders’ equity increased $93.9 million from $668.7 million at March 31, 2019. The increase was mainly due to the stock consideration issued in connection with the Oak Park River Forest acquisition as well as net income generated during the period.

The Company repurchased 118,486 shares of its common stock at an average price of $14.08 per share during the first quarter of 2020 under its board approved stock repurchase program announced in the fourth quarter of 2019. The Company is authorized to purchase up to an aggregate of 1,250,000 shares of the Company’s outstanding common stock. The program will be in effect until December 31, 2020, unless terminated earlier. The program was paused in March 2020.

The following table presents the actual regulatory capital dollar amounts and ratios of the Company and Byline Bank as of March 31, 2020:

		Actual								Minimum Capital Required								Required to be Considered Well Capitalized
March 31, 2020		Amount				Ratio				Amount				Ratio				Amount				Ratio
Total capital to risk weighted assets:
Company		$	641,540				14.50	%		$	353,933				8.00	%		N/A				N/A
Bank			615,278				13.93	%			353,391				8.00	%		$	441,739				10.00	%
Tier 1 capital to risk weighted assets:
Company		$	598,342				13.52	%		$	265,450				6.00	%		N/A				N/A
Bank			572,080				12.95	%			265,043				6.00	%		$	353,391				8.00	%
Common Equity Tier 1 (CET1) to risk weighted assets:
Company		$	541,404				12.24	%		$	199,087				4.50	%		N/A				N/A
Bank			572,080				12.95	%			198,782				4.50	%		$	287,130				6.50	%
Tier 1 capital to average assets:
Company		$	598,342				11.18	%		$	214,094				4.00	%		N/A				N/A
Bank			572,080				10.70	%			213,950				4.00	%		$	267,437				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, May 1, 2020 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 [phone]. A recorded replay can be accessed through May 15, 2020 by dialing [phone]; passcode: 10142538.

A slide presentation relating to the first quarter 2020 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 $5.7 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 five 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 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 “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. Additionally, please refer to the Company’s Annual Report on Form 10-K for the detailed definitions of these non-GAAP financial measures.

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 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.

The COVID-19 pandemic is adversely affecting us, our employees, customers, counterparties and third-party service providers, and the ultimate extent of the impacts on our business, financial position, results of operations, liquidity, and prospects is uncertain. Continued deterioration in general business and economic conditions, including further increases in unemployment rates, or turbulence in U.S. or global financial markets could adversely affect our revenues and the values of our assets and liabilities, reduce the availability of funding, lead to a tightening of credit, and further increase stock price volatility. In addition, changes to statutes, regulations, or regulatory policies or practices as a result of, or in response to COVID-19, could affect us in substantial and unpredictable ways.

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 its Annual Report on Form 10-K and other reports filed with the Securities and Exchange Commission, including among other things under the heading “Risk Factors” in such Annual Report on Form 10-K. 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)
(dollars in thousands)		March 31, 2020				December 31, 2019				September 30, 2019				June 30, 2019				March 31, 2019
ASSETS
Cash and due from banks		$	45,233			$	48,228			$	75,275			$	57,513			$	50,026
Interest bearing deposits with other banks			74,386				32,509				33,564				31,802				31,971
Cash and cash equivalents			119,619				80,737				108,839				89,315				81,997
Equity and other securities, at fair value			7,413				8,031				7,648				7,662				7,216
Securities available-for-sale, at fair value			1,299,483				1,186,292				1,031,933				969,029				964,553
Securities held-to-maturity, at amortized cost			4,408				4,412				4,417				4,421				4,425
Restricted stock, at cost			24,197				22,127				24,331				22,937				19,202
Loans held for sale			13,299				11,732				7,176				18,473				510
Loans and leases:
Loans and leases			3,860,259				3,785,661				3,831,090				3,863,148				3,567,566
Allowance for loan and lease losses			(41,840	)			(31,936	)			(31,585	)			(31,132	)			(27,106	)
Net loans and leases			3,818,419				3,753,725				3,799,505				3,832,016				3,540,460
Servicing assets, at fair value			17,800				19,471				19,939				19,760				19,534
Premises and equipment, net			96,446				96,140				96,006				96,588				97,069
Other real estate owned, net			9,273				9,896				6,502				6,531				4,595
Goodwill and other intangible assets, net			178,362				180,255				179,543				181,546				159,823
Bank-owned life insurance			9,898				9,750				9,699				9,634				6,087
Deferred tax assets, net			33,845				38,315				33,388				35,737				30,534
Accrued interest receivable and other assets			102,292				100,926				109,352				97,587				73,920
Total assets		$	5,734,754			$	5,521,809			$	5,438,278			$	5,391,236			$	5,009,925
LIABILITIES AND STOCKHOLDERS’ EQUITY
LIABILITIES
Non-interest-bearing demand deposits		$	1,290,896			$	1,279,641			$	1,221,431			$	1,240,375			$	1,163,255
Interest-bearing deposits			2,947,940				2,867,936				2,858,883				2,819,868				2,645,261
Total deposits			4,238,836				4,147,577				4,080,314				4,060,243				3,808,516
Short-term borrowings			640,647				539,638				538,290				532,885				459,369
Junior subordinated debentures issued to capital trusts, net			37,462				37,334				37,207				37,059				36,912
Accrued expenses and other liabilities			55,142				47,145				46,601				43,374				36,379
Total liabilities			4,972,087				4,771,694				4,702,412				4,673,561				4,341,176
STOCKHOLDERS’ EQUITY
Preferred stock			10,438				10,438				10,438				10,438				10,438
Common stock			380				379				378				378				362
Additional paid-in capital			582,517				580,965				579,564				578,828				548,005
Retained earnings			160,652				159,033				144,525				129,379				116,363
Accumulated other comprehensive income (loss), net of tax			10,348				(700	)			961				(1,348	)			(6,419	)
Treasury stock			(1,668	)			—				—				—				—
Total stockholders’ equity			762,667				750,115				735,866				717,675				668,749
Total liabilities and stockholders’ equity		$	5,734,754			$	5,521,809			$	5,438,278			$	5,391,236			$	5,009,925

BYLINE BANCORP, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS (unaudited)
		Three Months Ended
(dollars in thousands, except per share data)		March 31, 2020				December 31, 2019				September 30, 2019				June 30, 2019				March 31, 2019
INTEREST AND DIVIDEND INCOME
Interest and fees on loans and leases		$	54,158			$	58,203			$	63,391			$	59,524			$	54,383
Interest on securities			8,016				7,212				7,040				6,665				6,102
Other interest and dividend income			992				500				598				571				625
Total interest and dividend income			63,166				65,915				71,029				66,760				61,110
INTEREST EXPENSE
Deposits			7,804				9,325				9,618				9,306				8,076
Short-term borrowings			1,897				1,989				2,835				2,265				2,166
Junior subordinated debentures issued to capital trusts			640				687				738				741				783
Total interest expense			10,341				12,001				13,191				12,312				11,025
Net interest income			52,825				53,914				57,838				54,448				50,085
PROVISION FOR LOAN AND LEASE LOSSES			14,455				4,387				5,931				6,391				3,999
Net interest income after provision for loan and lease losses			38,370				49,527				51,907				48,057				46,086
NON-INTEREST INCOME
Fees and service charges on deposits			1,673				1,635				1,612				1,441				1,770
Loan servicing revenue			2,758				2,834				2,692				2,630				2,539
Loan servicing asset revaluation			(3,064	)			(2,545	)			(1,610	)			(1,223	)			(1,261	)
ATM and interchange fees			1,216				1,150				973				945				717
Net gains on sales of securities available-for-sale			1,375				—				178				973				—
Change in fair value of equity securities, net			(619	)			381				(15	)			551				499
Net gains on sales of loans			4,773				8,735				9,405				7,472				6,233
Wealth management and trust income			669				704				653				626				595
Other non-interest income			392				1,622				918				768				896
Total non-interest income			9,173				14,516				14,806				14,183				11,988
NON-INTEREST EXPENSE
Salaries and employee benefits			24,666				24,228				24,537				23,652				22,892
Occupancy and equipment expense, net			5,524				5,241				4,512				5,069				4,949
Loan and lease related expenses			1,311				2,648				1,949				1,841				1,577
Legal, audit, and other professional fees			2,334				2,340				4,066				2,981				2,066
Data processing			2,665				2,678				4,062				3,849				3,144
Net loss recognized on other real estate owned and other related expenses			519				122				95				252				196
Other intangible assets amortization expense			1,893				2,002				2,003				1,959				1,773
Other non-interest expense			4,615				4,435				4,224				4,351				4,082
Total non-interest expense			43,527				43,694				45,448				43,954				40,679
INCOME BEFORE PROVISION FOR INCOME TAXES			4,016				20,349				21,265				18,286				17,395
PROVISION FOR INCOME TAXES			1,050				4,497				5,923				5,075				4,798
NET INCOME			2,966				15,852				15,342				13,211				12,597
Dividends on preferred shares			196				196				196				195				196
INCOME AVAILABLE TO COMMON STOCKHOLDERS		$	2,770			$	15,656			$	15,146			$	13,016			$	12,401
EARNINGS PER COMMON SHARE
Basic		$	0.07			$	0.41			$	0.40			$	0.35			$	0.34
Diluted		$	0.07			$	0.41			$	0.39			$	0.34			$	0.34

BYLINE BANCORP, INC. AND SUBSIDIARIES
SELECTED FINANCIAL DATA (unaudited)
		As of or For the Three Months Ended
(dollars in thousands, except share and per share data)		March 31, 2020				December 31, 2019				September 30, 2019				June 30, 2019				March 31, 2019
Common Share Data
Basic earnings per common share		$	0.07			$	0.41			$	0.40			$	0.35			$	0.34
Diluted earnings per common share		$	0.07			$	0.41			$	0.39			$	0.34			$	0.34
Adjusted diluted earnings per common share(2)(3)(4)		$	0.09			$	0.42			$	0.41			$	0.41			$	0.38
Weighted average common shares outstanding (basic)			37,943,333				37,872,835				37,831,356				37,263,352				36,169,477
Weighted average common shares outstanding (diluted)			38,663,658				38,537,899				38,487,180				37,948,006				36,876,574
Common shares outstanding			38,383,021				38,256,500				38,169,126				38,115,219				36,398,144
Cash dividends per common share		$	0.03			$	0.03			N/A				N/A				N/A
Dividend payout ratio on common stock			42.86	%			7.32	%		N/A				N/A				N/A
Tangible book value per common share(1)		$	14.95			$	14.62			$	14.30			$	13.79			$	13.70
Key Ratios and Performance Metrics (annualized where applicable)
Net interest margin			4.17	%			4.32	%			4.62	%			4.51	%			4.43	%
Average cost of deposits			0.75	%			0.88	%			0.94	%			0.92	%			0.87	%
Efficiency ratio(2)			67.16	%			60.93	%			59.81	%			61.19	%			62.68	%
Adjusted efficiency ratio(1)(2)(3)			66.00	%			60.51	%			58.17	%			56.02	%			59.55	%
Non-interest expense to average assets			3.15	%			3.19	%			3.32	%			3.34	%			3.32	%
Adjusted non-interest expense to average assets(1)(3)			3.09	%			3.17	%			3.23	%			3.07	%			3.17	%
Return on average stockholders' equity			1.56	%			8.43	%			8.34	%			7.60	%			7.75	%
Adjusted return on average stockholders' equity(1)(3)			1.83	%			8.54	%			8.78	%			9.16	%			8.61	%
Return on average assets			0.21	%			1.16	%			1.12	%			1.00	%			1.03	%
Adjusted return on average assets(1)(3)(4)			0.25	%			1.17	%			1.18	%			1.21	%			1.14	%
Non-interest income to total revenues(1)			14.79	%			21.21	%			20.38	%			20.67	%			19.31	%
Pre-tax pre-provision return on average assets(1)			1.33	%			1.81	%			1.98	%			1.88	%			1.75	%
Adjusted pre-tax pre-provision return on average assets(1)(3)			1.39	%			1.83	%			2.07	%			2.15	%			1.91	%
Return on average tangible common stockholders' equity(1)			2.89	%			12.20	%			12.22	%			11.32	%			11.37	%
Adjusted return on average tangible common stockholders' equity(1)(3)			3.25	%			12.35	%			12.82	%			13.44	%			12.54	%
Non-interest-bearing deposits to total deposits			30.45	%			30.85	%			29.93	%			30.55	%			30.54	%
Loans and leases held for sale and loans and lease held for investment to total deposits			91.38	%			91.56	%			94.07	%			95.60	%			93.69	%
Deposits to total liabilities			85.25	%			86.92	%			86.77	%			86.88	%			87.73	%
Deposits per branch		$	74,366			$	67,993			$	66,890			$	66,561			$	65,664
Asset Quality Ratios
Non-performing loans and leases to total loans and leases held for investment, net before ALLL			1.31	%			1.00	%			1.09	%			0.95	%			0.85	%
ALLL to total loans and leases held for investment, net before ALLL			1.08	%			0.84	%			0.82	%			0.81	%			0.76	%
Net charge-offs to average total loans and leases held for investment, net before ALLL			0.48	%			0.42	%			0.56	%			0.25	%			0.24	%
Acquisition accounting adjustments(4)		$	25,889			$	28,511			$	31,053			$	37,109			$	29,341
Capital Ratios
Common equity to total assets			13.12	%			13.40	%			13.34	%			13.12	%			13.14	%
Tangible common equity to tangible assets(1)			10.33	%			10.47	%			10.38	%			10.09	%			10.28	%
Leverage ratio			11.18	%			11.39	%			11.14	%			11.09	%			11.27	%
Common equity tier 1 capital ratio			12.24	%			12.36	%			12.12	%			11.65	%			12.14	%
Tier 1 capital ratio			13.52	%			13.67	%			13.43	%			12.96	%			13.57	%
Total capital ratio			14.50	%			14.43	%			14.19	%			13.71	%			14.28	%

(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, merger-related expenses, and core systems conversion expense.
(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.

BYLINE BANCORP, INC. AND SUBSIDIARIES
QUARTER-TO-DATE STATEMENT OF AVERAGE INTEREST-EARNING ASSETS AND AVERAGE INTEREST-BEARING LIABILITIES (unaudited)
		For the Three Months Ended March 31,
		2020												2019
(dollars in thousands)		Average Balance(5)				Interest Inc / Exp				Average Yield / Rate				Average Balance(5)				Interest Inc / Exp				Average Yield / Rate
ASSETS
Cash and cash equivalents		$	38,934			$	157				1.63	%		$	66,765			$	301				1.83	%
Loans and leases(1)			3,799,213				54,158				5.73	%			3,533,973				54,383				6.24	%
Taxable securities			1,175,120				8,316				2.85	%			926,129				6,083				2.66	%
Tax-exempt securities(2)			84,679				535				2.54	%			55,198				343				2.52	%
Total interest-earning assets		$	5,097,946			$	63,166				4.98	%		$	4,582,065			$	61,110				5.41	%
Allowance for loan and lease losses			(33,664	)											(25,354	)
All other assets			501,670												406,995
TOTAL ASSETS		$	5,565,952											$	4,963,706
LIABILITIES AND STOCKHOLDERS’ EQUITY
Deposits
Interest checking		$	338,905			$	260				0.31	%		$	293,049			$	413				0.57	%
Money market accounts			962,205				2,214				0.93	%			613,001				1,460				0.97	%
Savings			480,270				61				0.05	%			471,206				138				0.12	%
Time deposits			1,113,596				5,269				1.90	%			1,195,417				6,065				2.06	%
Total interest-bearing deposits			2,894,976				7,804				1.08	%			2,572,673				8,076				1.27	%
Short-term borrowings			521,108				1,897				1.46	%			467,835				2,166				1.88	%
Junior subordinated debentures issued to capital trusts			37,385				640				6.88	%			36,817				783				8.62	%
Total borrowings			558,493				2,537				1.83	%			504,652				2,949				2.37	%
Total interest-bearing liabilities		$	3,453,469			$	10,341				1.20	%		$	3,077,325			$	11,025				1.45	%
Non-interest-bearing demand deposits			1,298,800												1,185,981
Other liabilities			48,256												41,244
Total stockholders’ equity			765,427												659,156
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY		$	5,565,952											$	4,963,706
Net interest spread(3)											3.78	%											3.96	%
Net interest income						$	52,825											$	50,085
Net interest margin(4)											4.17	%											4.43	%
Net loan accretion impact on margin						$	3,671				0.29	%						$	5,201				0.46	%

(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.

BYLINE BANCORP, INC. AND SUBSIDIARIES
RECONCILIATION OF NON-GAAP FINANCIAL MEASURES (unaudited)
		As of or For the Three Months Ended
(dollars in thousands, except per share data)		March 31, 2020				December 31, 2019				September 30, 2019				June 30, 2019				March 31, 2019
Net income and earnings per share excluding significant items
Reported Net Income		$	2,966			$	15,852			$	15,342			$	13,211			$	12,597
Significant items:
Impairment charges on assets held for sale			715				111				67				—				392
Merger-related expense			—				127				1,043				3,152				18
Core system conversion expense			—				48				77				394				1,530
Tax benefit on impairment charges and merger-related expenses			(199	)			(79	)			(369	)			(842	)			(540	)
Adjusted Net Income		$	3,482			$	16,059			$	16,160			$	15,915			$	13,997
Reported Diluted Earnings per Share		$	0.07			$	0.41			$	0.39			$	0.34			$	0.34
Significant items:
Impairment charges on assets held for sale			0.02				—				—				—				0.01
Merger-related expense			—				0.01				0.03				0.08				—
Core system conversion expense			—				—				—				0.01				0.04
Tax benefit on impairment charges and merger-related expenses			—				—				(0.01	)			(0.02	)			(0.01	)
Adjusted Diluted Earnings per Share		$	0.09			$	0.42			$	0.41			$	0.41			$	0.38

BYLINE BANCORP, INC. AND SUBSIDIARIES
RECONCILIATION OF NON-GAAP FINANCIAL MEASURES (continued) (unaudited)
		As of or For the Three Months Ended
(dollars in thousands, except per share data, ratios annualized, where applicable)		March 31, 2020				December 31, 2019				September 30, 2019				June 30, 2019				March 31, 2019
Adjusted non-interest expense:
Non-interest expense		$	43,527			$	43,694			$	45,448			$	43,954			$	40,679
Less: Significant items
Impairment charges on assets held for sale			715				111				67				—				392
Merger-related expense			—				127				1,043				3,152				18
Core system conversion expense			—				48				77				394				1,530
Adjusted non-interest expense		$	42,812			$	43,408			$	44,261			$	40,408			$	38,739
Adjusted non-interest expense excluding amortization of intangible assets:
Adjusted non-interest expense		$	42,812			$	43,408			$	44,261			$	40,408			$	38,739
Less: Amortization of intangible assets			1,893				2,002				2,003				1,959				1,773
Adjusted non-interest expense excluding amortization of intangible assets		$	40,919			$	41,406			$	42,258			$	38,449			$	36,966
Pre-tax pre-provision net income:
Pre-tax income		$	4,016			$	20,349			$	21,265			$	18,286			$	17,395
Add: Provision for loan and lease losses			14,455				4,387				5,931				6,391				3,999
Pre-tax pre-provision net income		$	18,471			$	24,736			$	27,196			$	24,677			$	21,394
Adjusted pre-tax pre-provision net income:
Pre-tax pre-provision net income		$	18,471			$	24,736			$	27,196			$	24,677			$	21,394
Impairment charges on assets held for sale			715				111				67				—				392
Merger-related expense			—				127				1,043				3,152				18
Core system conversion expense			—				48				77				394				1,530
Adjusted pre-tax pre-provision net income		$	19,186			$	25,022			$	28,383			$	28,223			$	23,334
Total revenues:
Net interest income		$	52,825			$	53,914			$	57,838			$	54,448			$	50,085
Add: Non-interest income			9,173				14,516				14,806				14,183				11,988
Total revenues		$	61,998			$	68,430			$	72,644			$	68,631			$	62,073
Tangible common stockholders' equity:
Total stockholders' equity		$	762,667			$	750,115			$	735,866			$	717,675			$	668,749
Less: Preferred stock			10,438				10,438				10,438				10,438				10,438
Less: Goodwill and other intangibles			178,362				180,255				179,543				181,546				159,823
Tangible common stockholders' equity		$	573,867			$	559,422			$	545,885			$	525,691			$	498,488
Tangible assets:
Total assets		$	5,734,754			$	5,521,809			$	5,438,278			$	5,391,236			$	5,009,925
Less: Goodwill and other intangibles			178,362				180,255				179,543				181,546				159,823
Tangible assets		$	5,556,392			$	5,341,554			$	5,258,735			$	5,209,690			$	4,850,102
Average tangible common stockholders' equity:
Average total stockholders' equity		$	765,427			$	745,745			$	729,781			$	696,928			$	659,156
Less: Average preferred stock			10,438				10,438				10,438				10,438				10,438
Less: Average goodwill and other intangibles			179,416				179,192				180,740				175,236				160,924
Average tangible common stockholders' equity		$	575,573			$	556,115			$	538,603			$	511,254			$	487,794
Average tangible assets:
Average total assets		$	5,565,952			$	5,427,046			$	5,435,762			$	5,274,820			$	4,963,706
Less: Average goodwill and other intangibles			179,416				179,192				180,740				175,236				160,924
Average tangible assets		$	5,386,536			$	5,247,854			$	5,255,022			$	5,099,584			$	4,802,782
Tangible net income available to common stockholders:
Net income available to common stockholders		$	2,770			$	15,656			$	15,146			$	13,016			$	12,401
Add: After-tax intangible asset amortization			1,366				1,445				1,445				1,413				1,279
Tangible net income available to common stockholders		$	4,136			$	17,101			$	16,591			$	14,429			$	13,680
Adjusted tangible net income available to common stockholders:
Tangible net income available to common stockholders		$	4,136			$	17,101			$	16,591			$	14,429			$	13,680
Impairment charges on assets held for sale			715				111				67				—				392
Merger-related expense			—				127				1,043				3,152				18
Core system conversion expense			—				48				77				394				1,530
Tax benefit on significant items			(199	)			(79	)			(369	)			(842	)			(540	)
Adjusted tangible net income available to common stockholders		$	4,652			$	17,308			$	17,409			$	17,133			$	15,080

BYLINE BANCORP, INC. AND SUBSIDIARIES
RECONCILIATION OF NON-GAAP FINANCIAL MEASURES (continued) (unaudited)
		As of or For the Three Months Ended
(dollars in thousands, except share and per share data, ratios annualized, where applicable)		March 31, 2020				December 31, 2019				September 30, 2019				June 30, 2019				March 31, 2019
Pre-tax pre-provision return on average assets:
Pre-tax pre-provision net income		$	18,471			$	24,736			$	27,196			$	24,677			$	21,394
Average total assets			5,565,952				5,427,046				5,435,762				5,274,820				4,963,706
Pre-tax pre-provision return on average assets			1.33	%			1.81	%			1.98	%			1.88	%			1.75	%
Adjusted pre-tax pre-provision return on average assets:
Adjusted pre-tax pre-provision net income		$	19,186			$	25,022			$	28,383			$	28,223			$	23,334
Average total assets			5,565,952				5,427,046				5,435,762				5,274,820				4,963,706
Adjusted pre-tax pre-provision return on average assets			1.39	%			1.83	%			2.07	%			2.15	%			1.91	%
Non-interest income to total revenues:
Non-interest income		$	9,173			$	14,516			$	14,806			$	14,183			$	11,988
Total revenues			61,998				68,430				72,644				68,631				62,073
Non-interest income to total revenues			14.79	%			21.21	%			20.38	%			20.67	%			19.31	%
Adjusted non-interest expense to average assets:
Adjusted non-interest expense		$	42,812			$	43,408			$	44,261			$	40,408			$	38,739
Average total assets			5,565,952				5,427,046				5,435,762				5,274,820				4,963,706
Adjusted non-interest expense to average assets			3.09	%			3.17	%			3.23	%			3.07	%			3.17	%
Adjusted efficiency ratio:
Adjusted non-interest expense excluding amortization of intangible assets		$	40,919			$	41,406			$	42,258			$	38,449			$	36,966
Total revenues			61,998				68,430				72,644				68,631				62,073
Adjusted efficiency ratio			66.00	%			60.51	%			58.17	%			56.02	%			59.55	%
Adjusted return on average assets:
Adjusted net income		$	3,482			$	16,059			$	16,160			$	15,915			$	13,997
Average total assets			5,565,952				5,427,046				5,435,762				5,274,820				4,963,706
Adjusted return on average assets			0.25	%			1.17	%			1.18	%			1.21	%			1.14	%
Adjusted return on average stockholders' equity:
Adjusted net income		$	3,482			$	16,059			$	16,160			$	15,915			$	13,997
Average stockholders' equity			765,427				745,745				729,781				696,928				659,156
Adjusted return on average stockholders' equity			1.83	%			8.54	%			8.78	%			9.16	%			8.61	%
Tangible common equity to tangible assets:
Tangible common equity		$	573,867			$	559,422			$	545,885			$	525,691			$	498,488
Tangible assets			5,556,392				5,341,554				5,258,735				5,209,690				4,850,102
Tangible common equity to tangible assets			10.33	%			10.47	%			10.38	%			10.09	%			10.28	%
Return on average tangible common stockholders' equity:
Tangible net income available to common stockholders		$	4,136			$	17,101			$	16,591			$	14,429			$	13,680
Average tangible common stockholders' equity			575,573				556,115				538,603				511,254				487,794
Return on average tangible common stockholders' equity			2.89	%			12.20	%			12.22	%			11.32	%			11.37	%
Adjusted return on average tangible common stockholders' equity:
Adjusted tangible net income available to common stockholders		$	4,652			$	17,308			$	17,409			$	17,133			$	15,080
Average tangible common stockholders' equity			575,573				556,115				538,603				511,254				487,794
Adjusted return on average tangible common stockholders' equity			3.25	%			12.35	%			12.82	%			13.44	%			12.54	%
Tangible book value per share:
Tangible common equity		$	573,867			$	559,422			$	545,885			$	525,691			$	498,488
Common shares outstanding			38,383,021				38,256,500				38,169,126				38,115,219				36,398,144
Tangible book value per share		$	14.95			$	14.62			$	14.30			$	13.79			$	13.70

 

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