Byline Bancorp (BY) 8-K Byline Bancorp, Inc. Reports Full Year and Fourth Quarter 2019 Financial Results

EX-99.1

 

Byline Bancorp, Inc. Reports Full Year and Fourth Quarter 2019 Financial Results

Full Year 2019 Highlights

• Net income of $57.0 million, or $1.48 per diluted share

• Return on average assets improved to 1.08% for 2019

• Net interest margin of 4.47% for 2019

• Efficiency ratio improved to 61.09% for 2019 compared to 65.15% for 2018

• Originated loans and leases increased $597.9 million, or 26.7%, from December 31, 2018

Fourth Quarter 2019 Highlights

• Net income of $15.9 million, or $0.41 per diluted share  

• Return on average assets of 1.16%

• Net interest margin of 4.32%

• Efficiency ratio of 60.93% for the fourth quarter of 2019

• Originated loans and leases increased $67.5 million, or 2.4%, from September 30, 2019

• Initiated cash dividend of $0.03 per share to common stockholders for the quarter and approved share repurchase program

Chicago, IL, January 23, 2020 – Byline Bancorp, Inc. (the “Company” or “Byline”)(NYSE: BY), the parent company of Byline Bank (the “Bank”), today reported net income of $15.9 million, or $0.41 per diluted share, for the fourth quarter of 2019, compared with net income of $15.3 million, or $0.39 per diluted share, for the third quarter of 2019, and net income of $17.1 million, or $0.46 per diluted share, for the fourth quarter of 2018. The Company’s financial results include certain costs associated with its integration of First Evanston Bancorp, Inc. and its bank subsidiary First Bank & Trust, and its acquisition and integration of Oak Park River Forest Bankshares, Inc. (“Oak Park River Forest”) and its bank subsidiary Community Bank of Oak Park River Forest. Excluding these merger-related expenses, core system conversion expenses, and impairment charges on assets held for sale, adjusted net income¹ was $16.1 million, or $0.42 per adjusted diluted share¹, for the fourth quarter of 2019, compared with $16.2 million, or $0.41 per adjusted diluted share, for the third quarter of 2019, and $18.1 million, or $0.49 per adjusted diluted share, for the fourth quarter of 2018. A reconciliation of adjusted net income and adjusted diluted earnings per share to net income and diluted earnings per share, respectively, according to accounting principles generally accepted in the United States of America (“GAAP”) is provided in the financial tables at the end of this release.

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 Bancorp, Inc.

Page 2 of 22

Alberto J. Paracchini, President and Chief Executive Officer of Byline, commented, “Our fourth quarter performance completed another strong year for the Byline franchise.  In 2019, we completed another accretive acquisition with the addition of Oak Park River Forest Bankshares, capitalized on disruption in the Chicago marketplace to add significant new banking talent to our organization, and continued to attract new commercial clients to the Bank.  As we moved through the year, we also made steady progress on improving our deposit mix and better managing our funding costs.  Our improving profitability enabled us to initiate a cash dividend in the fourth quarter and deliver additional value to our shareholders.  With the strong foundation we have built and our unique positioning in the Chicago market, we believe we have good opportunities to continue enhancing the value of our franchise in the coming years.”

STATEMENTS OF OPERATIONS

Net Interest Income

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

	Three Months Ended										Year Ended
	December 31,		September 30,		June 30,		March 31,		December 31,		December 31,		December 31,
(dollars in thousands)	2019		2019		2019		2019		2018		2019		2018
INTEREST AND DIVIDEND INCOME
Interest and fees on loans and    leases	$	58,203	$	63,391	$	59,524	$	54,383	$	56,646	$	235,501	$	184,972
Interest on taxable securities		6,683		6,554		6,237		5,759		5,334		25,233		19,037
Interest on tax-exempt securities		529		486		428		343		355		1,786		1,095
Other interest and dividend    income		500		598		571		625		560		2,294		1,847
Total interest and dividend    income		65,915		71,029		66,760		61,110		62,895		264,814		206,951
INTEREST EXPENSE
Deposits		9,325		9,618		9,306		8,076		7,115		36,325		19,329
Federal Home Loan Bank    advances		1,917		2,771		2,174		2,099		1,719		8,961		6,160
Subordinated debentures and    other borrowings		759		802		832		850		800		3,243		2,857
Total interest expense		12,001		13,191		12,312		11,025		9,634		48,529		28,346
Net interest income	$	53,914	$	57,838	$	54,448	$	50,085	$	53,261	$	216,285	$	178,605

Byline Bancorp, Inc.

Page 3 of 22

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

	For the Three Months Ended
	December 31, 2019								September 30, 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	$	38,624		$	220		2.25	%	$	34,225		$	253		2.93	%
Loans and leases(1)		3,807,731			58,203		6.06	%		3,860,770			63,391		6.51	%
Taxable securities		1,025,975			6,963		2.69	%		996,750			6,899		2.75	%
Tax-exempt securities(2)		84,640			529		2.48	%		76,161			486		2.53	%
Total interest-earning assets	$	4,956,970		$	65,915		5.28	%	$	4,967,906		$	71,029		5.67	%
Allowance for loan and lease losses		(32,688	)							(32,246	)
All other assets		502,764								500,102
TOTAL ASSETS	$	5,427,046							$	5,435,762
LIABILITIES AND STOCKHOLDERS’    EQUITY
Deposits
Interest checking	$	399,065		$	612		0.61	%	$	358,185		$	524		0.58	%
Money market accounts		790,565			1,945		0.98	%		735,724			1,917		1.03	%
Savings		474,394			63		0.05	%		475,417			114		0.10	%
Time deposits		1,231,641			6,705		2.16	%		1,270,050			7,063		2.21	%
Total interest-bearing    deposits		2,895,665			9,325		1.28	%		2,839,376			9,618		1.34	%
Federal Home Loan Bank advances		371,730			1,917		2.05	%		530,055			2,771		2.07	%
Other borrowed funds		80,039			759		3.76	%		70,080			802		4.54	%
Total borrowings		451,769			2,676		2.35	%		600,135			3,573		2.36	%
Total interest-bearing liabilities	$	3,347,434		$	12,001		1.42	%	$	3,439,511		$	13,191		1.52	%
Non-interest-bearing demand deposits		1,288,960								1,223,556
Other liabilities		44,907								42,914
Total stockholders’ equity		745,745								729,781
TOTAL LIABILITIES AND    STOCKHOLDERS’ EQUITY	$	5,427,046							$	5,435,762
Net interest spread(3)							3.86	%							4.15	%
Net interest income				$	53,914							$	57,838
Net interest margin(4)							4.32	%							4.62	%
Net loan accretion impact on margin				$	5,418		0.43	%				$	7,703		0.62	%

(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.

Page 4 of 22

Net interest income for the fourth quarter of 2019 was $53.9 million, a decrease of $3.9 million, or 6.8%, from $57.8 million for the third quarter of 2019.

The decrease in net interest income was primarily due to:

• A decrease of $5.2 million in interest and fees on loans and leases, mainly due to a $2.3 million decrease in accretion income on acquired loans and lower average yields on loans as a result of decreases in short-term rates in September and October 2019.

Partially offset by:

• A decrease of $854,000 in interest expense on Federal Home Loan Bank advances, mostly due to a decrease in average advances during the quarter as average lower-cost deposits grew; and

• A decrease of $293,000 in interest expense on deposits, as a result of lower average time deposit balances and cost attributable to maturities of higher-rate time deposits.

Net interest margin for the fourth quarter of 2019 was 4.32%, a decrease of 30 basis points compared to 4.62% for the third quarter of 2019. Total net accretion income on acquired loans contributed 43 basis points to the net interest margin for the fourth quarter of 2019 compared to 62 basis points for the third quarter of 2019, a decrease of 19 basis points. The net interest margin decrease during the fourth quarter of 2019 was primarily driven by decreased loan and lease yields largely resulting from decreased loan accretion income and decreases in short-term rates.

The average cost of total deposits was 0.88% for the fourth quarter of 2019, a decrease of six basis points compared to the third quarter of 2019, mainly due to a favorable change in deposit mix and a lower average cost of time deposits.  Average non-interest-bearing demand deposits, money market accounts, and interest-bearing checking accounts grew by $65.4 million, $54.8 million, and $40.9 million, respectively, while average time deposits decreased by $38.4 million.

Provision for Loan and Lease Losses

The provision for loan and lease losses was $4.4 million for the fourth quarter of 2019, a decrease of $1.5 million compared to $5.9 million for the third quarter of 2019.  The fourth quarter included allocations of $3.2 million for originated loans and leases, $524,000 for acquired non-impaired loans, and $694,000 for acquired impaired loans.  The provision during the fourth quarter of 2019 for originated loans reflects growth in that portfolio, particularly the unguaranteed portion of government guaranteed loans.  

Byline Bancorp, Inc.

Page 5 of 22

Non-interest Income

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

	Three Months Ended															Year Ended
	December 31,			September 30,			June 30,			March 31,			December 31,			December 31,			December 31,
(dollars in thousands)	2019			2019			2019			2019			2018			2019			2018
NON-INTEREST INCOME
Fees and service charges on    deposits	$	1,635		$	1,612		$	1,441		$	1,770		$	1,852		$	6,458		$	6,445
Loan servicing revenue		2,834			2,692			2,630			2,539			2,667			10,695			10,272
Loan servicing asset revaluation		(2,545	)		(1,610	)		(1,223	)		(1,261	)		(2,862	)		(6,639	)		(9,269	)
ATM and interchange fees		1,150			973			945			717			1,010			3,785			4,313
Net gains on sales of securities    available-for-sale		—			178			973			—			160			1,151			164
Change in fair value of equity    securities, net		381			(15	)		551			499			—			1,416			—
Net gains on sales of loans		8,735			9,405			7,472			6,233			9,337			31,845			31,551
Wealth management and trust    income		704			653			626			595			679			2,578			1,545
Other non-interest income		1,622			918			768			896			1,447			4,204			5,505
Total non-interest income	$	14,516		$	14,806		$	14,183		$	11,988		$	14,290		$	55,493		$	50,526

Non-interest income for the fourth quarter of 2019 was $14.5 million, a decrease of $290,000, or 2.0%, compared to $14.8 million for the third quarter of 2019.

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

• An increase of $935,000 in loan servicing asset revaluation, reflecting an unfavorable change in fair value of the servicing asset as a result of increased prepayments and discount rates; and

A decrease of $670,000 in net gains on sales of loans, mainly due to a decrease in average premium on sales of government guaranteed loans.

Partially offset by:

• An increase of $704,000 in other non-interest income, mostly due to a favorable swap valuation adjustment and increased swap activity; and

An increase in the change in fair value of equity securities, net, of $396,000 due to an increase in the fair value of those securities.

During the fourth quarter of 2019, the Company sold $101.5 million of U.S. government guaranteed loans compared to $93.3 million during the third quarter of 2019. The increase in sales is principally due to the timing of loans closed becoming fully funded.

Byline Bancorp, Inc.

Page 6 of 22

Non-interest Expense

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

	Three Months Ended											Year Ended
	December 31,		September 30,		June 30,		March 31,			December 31,		December 31,		December 31,
(dollars in thousands)	2019		2019		2019		2019			2018		2019		2018
NON-INTEREST EXPENSE
Salaries and employee benefits	$	24,228	$	24,537	$	23,652	$	22,892		$	21,548	$	95,309	$	80,382
Occupancy expense, net		4,306		3,745		4,337		4,280			4,027		16,668		15,829
Equipment expense		935		767		732		669			641		3,103		2,419
Loan and lease related expenses		2,648		1,949		1,841		1,577			2,223		8,015		6,109
Legal, audit and other professional    fees		2,340		4,066		2,981		2,066			2,746		11,453		11,373
Data processing		2,678		4,062		3,849		3,144			2,846		13,733		18,242
Net loss (gain) recognized on other    real estate owned and other    related expenses		122		95		252		196			48		665		235
Regulatory assessments		157		228		371		(59	)		462		697		1,744
Other intangible assets    amortization expense		2,003		2,003		1,959		1,773			1,834		7,738		5,629
Advertising and promotions		1,114		843		732		709			590		3,398		1,723
Telecommunications		488		474		537		464			391		1,963		1,710
Other non-interest expense		2,675		2,679		2,711		2,968			2,732		11,033		9,501
Total non-interest expense	$	43,694	$	45,448	$	43,954	$	40,679		$	40,088	$	173,775	$	154,896

Non-interest expense for the fourth quarter of 2019 was $43.7 million, a decrease of $1.8 million, or 3.9%, from $45.4 million for the third quarter of 2019.

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

• A decrease of $1.7 million in legal, audit and other professional fees, as the prior quarter reflected $1.5 million of non-recurring professional services costs;

• A decrease of $1.4 million in data processing expense, mostly due to expenses associated with our Oak Park River Forest core system conversion during the prior quarter; and

• A decrease of $309,000 in salaries and employee benefits, as the prior quarter included acquisition related salary and employee benefit costs.  

Partially offset by:

• An increase of $699,000 in loan and lease related expenses due to higher loan expenses on government guaranteed loans;

An increase of $561,000 in occupancy expense, net, largely due to a favorable accrual adjustment to property tax expense in the prior quarter as well as an increase in rental expense related to office expansion; and

•

• An increase of $271,000 in advertising and promotions expense due to additional media advertisement during the quarter.

The Company’s efficiency ratio was 60.93% for the fourth quarter of 2019, compared with 59.81% for the third 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 60.51% for the fourth quarter of 2019, compared with 58.17% for the third quarter of 2019.

(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 Bancorp, Inc.

Page 7 of 22

INCOME TAXES

The Company recorded income tax expense of $4.5 million during the fourth quarter of 2019, an effective tax rate of 22.1%, compared to $5.9 million during the third quarter of 2019, an effective tax rate of 27.9%.  The decrease in the effective tax rate was due to tax benefits recorded as a result of the recognition of tax assets associated with other real estate owned.

STATEMENTS OF FINANCIAL CONDITION

Total assets were $5.5 billion at December 31, 2019, an increase of $83.5 million compared to $5.4 billion at September 30, 2019, and an increase of $579.2 million compared to $4.9 billion at December 31, 2018.

The current quarter increase was primarily due to:

• An increase in securities of $154.7 million, reflecting purchases of mortgage-backed securities during the quarter;

• An increase in loans held for sale of $4.6 million, largely due to the timing of loan originations during the quarter; and

• An increase in other real estate owned of $3.4 million due to the volume of transfers in exceeding sales.

Partially offset by:

• A decrease in loans and leases of $45.4 million, mostly due to a decrease of $112.9 million in our acquired loan portfolio, partially offset by an increase of $67.5 million in our originated loan portfolio; and

A decrease in cash and cash equivalents of $28.1 million due to the redeployment of cash into earning assets.

Byline Bancorp, Inc.

Page 8 of 22

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

	December 31, 2019						September 30, 2019						December 31, 2018
(dollars in thousands)	Amount			% of Total			Amount			% of Total			Amount			% of Total
Originated loans and leases
Commercial real estate	$	792,263			20.9	%	$	772,559			20.2	%	$	652,234			18.6	%
Residential real estate		483,072			12.8	%		497,839			13.0	%		466,309			13.3	%
Construction, land development, and    other land		235,794			6.2	%		236,780			6.2	%		144,128			4.1	%
Commercial and industrial		1,160,996			30.7	%		1,096,400			28.6	%		803,508			22.9	%
Installment and other		5,372			0.1	%		7,818			0.2	%		11,718			0.3	%
Leasing financing receivables		158,155			4.2	%		156,758			4.1	%		159,901			4.6	%
Total originated loans and leases	$	2,835,652			74.9	%	$	2,768,154			72.3	%	$	2,237,798			63.8	%
Acquired impaired loans
Commercial real estate	$	135,914			3.6	%	$	142,435			3.7	%	$	146,808			4.2	%
Residential real estate		100,223			2.7	%		109,409			2.9	%		113,934			3.3	%
Construction, land development, and    other land		5,373			0.1	%		4,562			0.1	%		3,779			0.1	%
Commercial and industrial		16,909			0.4	%		18,349			0.5	%		12,617			0.4	%
Installment and other		249			0.0	%		267			0.0	%		404			0.0	%
Total acquired impaired loans	$	258,668			6.8	%	$	275,022			7.2	%	$	277,542			8.0	%
Acquired non-impaired loans and leases
Commercial real estate	$	348,365			9.2	%	$	391,294			10.2	%	$	462,565			13.2	%
Residential real estate		128,527			3.4	%		141,855			3.7	%		124,659			3.6	%
Construction, land development, and    other land		37,490			1.0	%		39,657			1.0	%		37,442			1.1	%
Commercial and industrial		153,660			4.1	%		187,413			4.9	%		328,672			9.4	%
Installment and other		944			0.0	%		1,269			0.0	%		1,596			0.0	%
Leasing financing receivables		22,355			0.6	%		26,426			0.7	%		31,352			0.9	%
Total acquired non-impaired loans    and leases	$	691,341			18.3	%	$	787,914			20.5	%	$	986,286			28.2	%
Total loans and leases	$	3,785,661			100.0	%	$	3,831,090			100.0	%	$	3,501,626			100.0	%
Allowance for loan and lease losses		(31,936	)					(31,585	)					(25,201	)
Total loans and leases, net of allowance for    loan and lease losses	$	3,753,725					$	3,799,505					$	3,476,425

Byline Bancorp, Inc.

Page 9 of 22

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:

	December 31,			September 30,			June 30,			March 31,			December 31,
(dollars in thousands)	2019			2019			2019			2019			2018
Non-performing assets:
Non-accrual loans and leases	$	36,272		$	39,529		$	34,027		$	28,539		$	25,834
Past due loans and leases 90 days or more    and still accruing interest		—			—			996			—			—
Accruing troubled debt restructured loans		1,771			2,204			1,529			1,921			1,813
Total non-performing loans and leases		38,043			41,733			36,552			30,460			27,647
Other real estate owned		9,896			6,502			6,531			4,595			5,041
Total non-performing assets	$	47,939		$	48,235		$	43,083		$	35,055		$	32,688
Total non-performing loans and leases as a    percentage of total loans and leases		1.00	%		1.09	%		0.95	%		0.85	%		0.79	%
Total non-performing assets as a percentage    of total assets		0.87	%		0.89	%		0.80	%		0.70	%		0.66	%
Allowance for loan and lease losses as a    percentage of non-performing loans and    leases		83.95	%		75.68	%		85.17	%		88.99	%		91.15	%
Non-performing assets guaranteed by    U.S. government:
Non-accrual loans guaranteed	$	4,232		$	4,167		$	4,723		$	5,070		$	4,245
Past due loans 90 days or more and still    accruing interest guaranteed		—			—			—			—			—
Accruing troubled debt restructured loans    guaranteed		—			—			—			—			381
Total non-performing loans guaranteed	$	4,232		$	4,167		$	4,723		$	5,070		$	4,626
Total non-performing loans and leases    not guaranteed as a percentage of total    loans and leases		0.89	%		0.98	%		0.82	%		0.71	%		0.66	%
Total non-performing assets not guaranteed    as a percentage of total assets		0.79	%		0.81	%		0.71	%		0.60	%		0.57	%

Variances in non-performing assets:  

• Non-performing loans and leases were $38.0 million at December 31, 2019, a decrease of $3.6 million from $41.7 million at September 30, 2019, principally due to loan resolutions; and

• Other real estate owned was $9.9 million at December 31, 2019, an increase of $3.4 million from $6.5 million at September 30, 2019 due to higher volume of transfers from loans exceeding sales.

U.S. government guaranteed balances of non-performing loans were consistent at $4.2 million at December 31, 2019 and September 30, 2019.

Byline Bancorp, Inc.

Page 10 of 22

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															Year Ended
	December 31,			September 30,			June 30,			March 31,			December 31,			December 31,			December 31,
(dollars in thousands)	2019			2019			2019			2019			2018			2019			2018
Allowance for loan and lease losses,    beginning of period	$	31,585		$	31,132		$	27,106		$	25,201		$	23,424		$	25,201		$	16,706
Provision for loan and lease losses		4,387			5,931			6,391			3,999			3,882			20,708			18,795
Net charge-offs of loans and leases		(4,036	)		(5,478	)		(2,365	)		(2,094	)		(2,105	)		(13,973	)		(10,300	)
Allowance for loan and lease losses,    end of period	$	31,936		$	31,585		$	31,132		$	27,106		$	25,201		$	31,936		$	25,201
Allowance for loan and lease losses    to period end total loans and    leases held for investment		0.84	%		0.82	%		0.81	%		0.76	%		0.72	%		0.84	%		0.72	%
Net charge-offs (annualized) to    average loans and leases    outstanding during the period		0.42	%		0.56	%		0.25	%		0.24	%		0.24	%		0.37	%		0.35	%
Provision for loan and lease losses to    net charge-offs during the period	1.09x			1.08x			2.70x			1.91x			1.84x				1.48	x	1.82x

The allowance for loan and lease losses as a percentage of total loans and leases held for investment increased to 0.84% at December 31, 2019, compared to 0.82% at September 30, 2019 and 0.72% at December 31, 2018.

In June 2016, the Financial Accounting Standards Board (“FASB”) issued new authoritative guidance on the recognition of credit losses which replaces the incurred loss impairment methodology in current authoritative guidance with a methodology that reflects expected credit losses.  In November 2019, the FASB delayed the effective date of the new authoritative guidance for entities, like the Company, that are not classified as Public Business Entities.  Assuming the Company remains an emerging growth company, the new authoritative guidance 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 fourth quarter of 2019 were $4.0 million, or 0.42% of average loans and leases, on an annualized basis, a decrease of $1.4 million compared to $5.5 million, or 0.56% of average loans and leases, during the third quarter of 2019, and an increase 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 fourth quarter of 2019 included $3.6 million in the unguaranteed portion of U.S. government guaranteed loans, while net charge-offs for the third quarter of 2019 included $4.8 million and fourth quarter of 2018 included $1.8 million in the unguaranteed portion of U.S. government guaranteed loans.

Byline Bancorp, Inc.

Page 11 of 22

Deposits and Other Liabilities

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

	December 31,		September 30,		June 30,		March 31,		December 31,
(dollars in thousands)	2019		2019		2019		2019		2018
Non-interest-bearing demand deposits	$	1,279,641	$	1,221,431	$	1,240,375	$	1,163,255	$	1,192,873
Interest-bearing checking accounts		338,185		372,049		345,081		305,393		296,339
Money market demand accounts		881,387		745,154		728,954		611,634		640,401
Other savings		475,839		471,878		480,756		468,524		476,418
Time deposits (below $250,000)		916,723		966,866		980,162		967,999		911,603
Time deposits ($250,000 and above)		255,802		302,936		284,915		291,711		232,282
Total deposits	$	4,147,577	$	4,080,314	$	4,060,243	$	3,808,516	$	3,749,916

Total deposits were $4.1 billion at December 31, 2019, an increase of $67.3 million compared to September 30, 2019, an increase of 1.6%. Non-interest-bearing deposits rose to 30.9% of total deposits at December 31, 2019 from 29.9% at September 30, 2019.

The increase in the current quarter was primarily due to:

• An increase in money market demand deposits of $136.2 million, from $745.2 million at September 30, 2019 to $881.4 million at December 31, 2019, largely driven by growth in business account balances; and

• An increase in non-interest-bearing demand deposits of $58.2 million, from $1.2 billion at September 30, 2019 to $1.3 billion at December 31, 2019, also driven by increases in business account balances.

Partially offset by:

• A decrease in time deposits of $97.3 million, from $1.3 billion at September 30, 2019 to $1.2 billion at December 31, 2019, principally driven by decreases in brokered certificates; and

• A decrease in interest-bearing checking deposits of $33.9 million, from $372.0 million at September 30, 2019 to $338.2 million at December 31, 2019, mainly driven by NOW business account balances.

Total borrowings and other liabilities were $624.1 million at December 31, 2019, an increase of $2.0 million from $622.1 million at September 30, 2019, mainly due to an increase in securities sold under agreements to repurchase partially offset by a decrease in FHLB advances.

Stockholders’ Equity

Total stockholders’ equity was $750.1 million at December 31, 2019, an increase of $14.2 million from $735.9 million at September 30, 2019. The increase was due to net income generated during the quarter less dividends declared.  On December 12, 2019, the Company announced that its Board of Directors declared the first cash dividend on its common stock of $0.03 per share for the fourth quarter of 2019.

Stockholders’ equity increased $99.4 million from $650.7 million at December 31, 2018. The increase was mainly due to net income generated during the year and the stock consideration issued in connection with the acquisition.

Byline Bancorp, Inc.

Page 12 of 22

On November 1, 2019, the Company announced that its Board of Directors approved a stock repurchase program authorizing the purchase of 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 Company has not made any stock repurchases under this program.  

The following table presents the actual regulatory capital dollar amounts and ratios of the Company and Byline Bank as of December 31, 2019:

	Actual					Minimum Capital Required					Required to be Considered Well Capitalized
December 31, 2019	Amount		Ratio			Amount		Ratio			Amount		Ratio
Total capital to risk weighted assets:
Company	$	627,573		14.43	%	$	347,835		8.00	%	N/A		N/A
Bank		602,684		13.87	%		347,564		8.00	%	$	434,454		10.00	%
Tier 1 capital to risk weighted assets:
Company	$	594,477		13.67	%	$	260,876		6.00	%	N/A		N/A
Bank		569,588		13.11	%		260,673		6.00	%	$	347,564		8.00	%
Common Equity Tier 1 (CET1) to    risk weighted assets:
Company	$	537,539		12.36	%	$	195,657		4.50	%	N/A		N/A
Bank		569,588		13.11	%		195,504		4.50	%	$	282,395		6.50	%
Tier 1 capital to average assets:
Company	$	594,477		11.39	%	$	208,771		4.00	%	N/A		N/A
Bank		569,588		10.92	%		208,647		4.00	%	$	260,809		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, January 24, 2020 to discuss its full year and quarterly financial results. Analysts and investors may participate in the question-and-answer session. The call can be accessed via telephone at (877) 512-8755. A recorded replay can be accessed through February 7, 2020 by dialing (877) 344-7529; passcode: 10138134.

A slide presentation relating to the fourth quarter 2019 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 websiteatwww.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 $5.5 billion in assets and operates more than 50 full service branch locations throughout the Chicago and Milwaukee metropolitan areas. Byline Bank offers a broad range of commercial and retail banking products and services including small ticket equipment leasing solutions and is one of the top five Small Business Administration lenders in the United States.  

Byline Bancorp, Inc.

Page 13 of 22

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. 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.

Page 14 of 22

Contacts:

Investors:	Media:
Tony Rossi	Erin O’Neill
Financial Profiles, Inc. 310-622-8221	Director of Marketing Byline Bank
BYIR@bylinebank.com	773-475-2901
	eoneill@bylinebank.com

Byline Bancorp, Inc.

Page 15 of 22

BYLINE BANCORP, INC. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION (unaudited)

	December 31,			September 30,			June 30,			March 31,			December 31,
(dollars in thousands)	2019			2019			2019			2019			2018
ASSETS
Cash and due from banks	$	48,228		$	75,275		$	57,513		$	50,026		$	30,190
Interest bearing deposits with other banks		32,509			33,564			31,802			31,971			91,670
Cash and cash equivalents		80,737			108,839			89,315			81,997			121,860
Equity and other securities, at fair value		8,031			7,648			7,662			7,216			—
Securities available-for-sale, at fair value		1,186,292			1,031,933			969,029			964,553			817,656
Securities held-to-maturity, at amortized cost		4,412			4,417			4,421			4,425			99,266
Restricted stock, at cost		22,127			24,331			22,937			19,202			19,202
Loans held for sale		11,732			7,176			18,473			510			19,827
Loans and leases:
Loans and leases		3,785,661			3,831,090			3,863,148			3,567,566			3,501,626
Allowance for loan and lease losses		(31,936	)		(31,585	)		(31,132	)		(27,106	)		(25,201	)
Net loans and leases		3,753,725			3,799,505			3,832,016			3,540,460			3,476,425
Servicing assets, at fair value		19,471			19,939			19,760			19,534			19,693
Accrued interest receivable		13,283			13,013			12,913			11,974			10,863
Premises and equipment, net		96,140			96,006			96,588			97,069			97,680
Assets held for sale		15,362			15,472			16,329			13,596			14,489
Other real estate owned, net		9,896			6,502			6,531			4,595			5,041
Goodwill		148,353			145,638			145,638			128,177			128,177
Other intangible assets, net		31,902			33,905			35,908			31,646			33,419
Bank-owned life insurance		9,750			9,699			9,634			6,087			5,961
Deferred tax assets, net		38,315			33,388			35,737			30,534			35,643
Due from counterparty		43,145			47,045			34,226			20,691			5,338
Other assets		29,136			33,822			34,119			27,659			32,034
Total assets	$	5,521,809		$	5,438,278		$	5,391,236		$	5,009,925		$	4,942,574
LIABILITIES AND STOCKHOLDERS’ EQUITY
LIABILITIES
Non-interest-bearing demand deposits	$	1,279,641		$	1,221,431		$	1,240,375		$	1,163,255		$	1,192,873
Interest-bearing deposits:
NOW, savings accounts, and money    market accounts		1,695,411			1,589,081			1,554,791			1,385,551			1,413,158
Time deposits		1,172,525			1,269,802			1,265,077			1,259,710			1,143,885
Total deposits		4,147,577			4,080,314			4,060,243			3,808,516			3,749,916
Accrued interest payable		3,677			4,778			4,522			4,390			3,484
Line of credit		—			—			—			—			—
Federal Home Loan Bank advances		490,000			506,000			500,000			425,000			425,000
Securities sold under agreements to    repurchase		49,638			32,290			32,885			34,369			34,166
Junior subordinated debentures issued to    capital trusts, net		37,334			37,207			37,059			36,912			36,768
Accrued expenses and other liabilities		43,468			41,823			38,852			31,989			42,568
Total liabilities		4,771,694			4,702,412			4,673,561			4,341,176			4,291,902
STOCKHOLDERS’ EQUITY
Preferred stock		10,438			10,438			10,438			10,438			10,438
Common stock		379			378			378			362			361
Additional paid-in capital		580,965			579,564			578,828			548,005			546,849
Retained earnings		159,033			144,525			129,379			116,363			102,522
Accumulated other comprehensive income    (loss), net of tax		(700	)		961			(1,348	)		(6,419	)		(9,498	)
Total stockholders’ equity		750,115			735,866			717,675			668,749			650,672
Total liabilities and stockholders’    equity	$	5,521,809		$	5,438,278		$	5,391,236		$	5,009,925		$	4,942,574

Byline Bancorp, Inc.

Page 16 of 22

BYLINE BANCORP, INC. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF OPERATIONS (unaudited)

	Three Months Ended															Year Ended
	December 31,			September 30,			June 30,			March 31,			December 31,			December 31,			December 31,
(dollars in thousands, except per share data)	2019			2019			2019			2019			2018			2019			2018
INTEREST AND DIVIDEND INCOME
Interest and fees on loans and leases	$	58,203		$	63,391		$	59,524		$	54,383		$	56,646		$	235,501		$	184,972
Interest on taxable securities		6,683			6,554			6,237			5,759			5,334			25,233			19,037
Interest on tax-exempt securities		529			486			428			343			355			1,786			1,095
Other interest and dividend income		500			598			571			625			560			2,294			1,847
Total interest and dividend income		65,915			71,029			66,760			61,110			62,895			264,814			206,951
INTEREST EXPENSE
Deposits		9,325			9,618			9,306			8,076			7,115			36,325			19,329
Federal Home Loan Bank advances		1,917			2,771			2,174			2,099			1,719			8,961			6,160
Subordinated debentures and other    borrowings		759			802			832			850			800			3,243			2,857
Total interest expense		12,001			13,191			12,312			11,025			9,634			48,529			28,346
Net interest income		53,914			57,838			54,448			50,085			53,261			216,285			178,605
PROVISION FOR LOAN AND LEASE LOSSES		4,387			5,931			6,391			3,999			3,882			20,708			18,795
Net interest income after provision    for loan and lease losses		49,527			51,907			48,057			46,086			49,379			195,577			159,810
NON-INTEREST INCOME
Fees and service charges on deposits		1,635			1,612			1,441			1,770			1,852			6,458			6,445
Loan servicing revenue		2,834			2,692			2,630			2,539			2,667			10,695			10,272
Loan servicing asset revaluation		(2,545	)		(1,610	)		(1,223	)		(1,261	)		(2,862	)		(6,639	)		(9,269	)
ATM and interchange fees		1,150			973			945			717			1,010			3,785			4,313
Net gains on sales of securities    available-for-sale		—			178			973			—			160			1,151			164
Change in fair value of equity securities,    net		381			(15	)		551			499			—			1,416			—
Net gains on sales of loans		8,735			9,405			7,472			6,233			9,337			31,845			31,551
Wealth management and trust income		704			653			626			595			679			2,578			1,545
Other non-interest income		1,622			918			768			896			1,447			4,204			5,505
Total non-interest income		14,516			14,806			14,183			11,988			14,290			55,493			50,526
NON-INTEREST EXPENSE
Salaries and employee benefits		24,228			24,537			23,652			22,892			21,548			95,309			80,382
Occupancy expense, net		4,306			3,745			4,337			4,280			4,027			16,668			15,829
Equipment expense		935			767			732			669			641			3,103			2,419
Loan and lease related expenses		2,648			1,949			1,841			1,577			2,223			8,015			6,109
Legal, audit, and other professional fees		2,340			4,066			2,981			2,066			2,746			11,453			11,373
Data processing		2,678			4,062			3,849			3,144			2,846			13,733			18,242
Net loss recognized on other real    estate owned and other related    expenses		122			95			252			196			48			665			235
Regulatory assessments		157			228			371			(59	)		462			697			1,744
Other intangible assets amortization    expense		2,003			2,003			1,959			1,773			1,834			7,738			5,629
Advertising and promotions		1,114			843			732			709			590			3,398			1,723
Telecommunications		488			474			537			464			391			1,963			1,710
Other non-interest expense		2,675			2,679			2,711			2,968			2,732			11,033			9,501
Total non-interest expense		43,694			45,448			43,954			40,679			40,088			173,775			154,896
INCOME BEFORE PROVISION FOR INCOME    TAXES		20,349			21,265			18,286			17,395			23,581			77,295			55,440
PROVISION FOR INCOME TAXES		4,497			5,923			5,075			4,798			6,460			20,293			14,247
NET INCOME		15,852			15,342			13,211			12,597			17,121			57,002			41,193
Dividends on preferred shares		196			196			195			196			196			783			783
INCOME AVAILABLE TO COMMON    STOCKHOLDERS	$	15,656		$	15,146		$	13,016		$	12,401		$	16,925		$	56,219		$	40,410
EARNINGS PER COMMON SHARE
Basic	$	0.41		$	0.40		$	0.35		$	0.34		$	0.47		$	1.51		$	1.21
Diluted	$	0.41		$	0.39		$	0.34		$	0.34		$	0.46		$	1.48		$	1.18

Byline Bancorp, Inc.

Page 17 of 22

BYLINE BANCORP, INC. AND SUBSIDIARIES

SELECTED FINANCIAL DATA (unaudited)

	As of or For the Three Months Ended															As of or For the Year Ended
(dollars in thousands, except share and	December 31,			September 30,			June 30,			March 31,			December 31,			December 31,			December 31,
per share data)	2019			2019			2019			2019			2018			2019			2018
Earnings per Common Share
Basic earnings per common share	$	0.41		$	0.40		$	0.35		$	0.34		$	0.47		$	1.51		$	1.21
Diluted earnings per common share	$	0.41		$	0.39		$	0.34		$	0.34		$	0.46		$	1.48		$	1.18
Adjusted diluted earnings per common    share(2)(3)(4)	$	0.42		$	0.41		$	0.41		$	0.38		$	0.49		$	1.62		$	1.43
Weighted average common shares    outstanding (basic)		37,872,835			37,831,356			37,263,352			36,169,477			36,116,189			37,290,486			33,292,619
Weighted average common shares    outstanding (diluted)		38,537,899			38,487,180			37,948,006			36,876,574			36,900,589			37,986,463			34,179,754
Common shares outstanding		38,256,500			38,169,126			38,115,219			36,398,144			36,343,239			38,256,500			36,343,239
Key Ratios and Performance Metrics    (annualized where applicable)
Net interest margin		4.32	%		4.62	%		4.51	%		4.43	%		4.69	%		4.47	%		4.60	%
Cost of deposits		0.88	%		0.94	%		0.92	%		0.87	%		0.75	%		0.91	%		0.60	%
Efficiency ratio(1)		60.93	%		59.81	%		61.19	%		62.68	%		56.63	%		61.09	%		65.15	%
Adjusted efficiency ratio(1)(2)(3)		60.51	%		58.17	%		56.02	%		59.55	%		54.76	%		58.53	%		59.68	%
Non-interest expense to average assets		3.19	%		3.32	%		3.34	%		3.32	%		3.25	%		3.29	%		3.65	%
Adjusted non-interest expense to    average assets(2)(3)		3.17	%		3.23	%		3.07	%		3.17	%		3.15	%		3.16	%		3.36	%
Return on average stockholders' equity		8.43	%		8.34	%		7.60	%		7.75	%		10.61	%		8.05	%		7.34	%
Adjusted return on average    stockholders' equity(2)(3)(4)		8.54	%		8.78	%		9.16	%		8.61	%		11.21	%		8.77	%		8.85	%
Return on average assets		1.16	%		1.12	%		1.00	%		1.03	%		1.39	%		1.08	%		0.97	%
Adjusted return on average    assets(2)(3)(4)		1.17	%		1.18	%		1.21	%		1.14	%		1.47	%		1.18	%		1.17	%
Non-interest income to total    revenues(2)		21.21	%		20.38	%		20.67	%		19.31	%		21.16	%		20.42	%		22.05	%
Pre-tax pre-provision return on    average assets(2)		1.81	%		1.98	%		1.88	%		1.75	%		2.23	%		1.86	%		1.75	%
Adjusted pre-tax pre-provision return on    average assets(2)(3)		1.83	%		2.07	%		2.15	%		1.91	%		2.33	%		1.99	%		2.05	%
Return on average tangible common    stockholders' equity(2)		12.20	%		12.22	%		11.32	%		11.37	%		15.49	%		11.80	%		10.44	%
Adjusted return on average tangible    common stockholders' equity(2)(3)(4)		12.35	%		12.82	%		13.44	%		12.54	%		16.31	%		12.78	%		12.44	%
Non-interest-bearing deposits to total    deposits		30.85	%		29.93	%		30.55	%		30.54	%		31.81	%		30.85	%		31.81	%
Loans and leases held for sale and loans    and lease held for investment to total    deposits		91.56	%		94.07	%		95.60	%		93.69	%		93.91	%		91.56	%		93.91	%
Deposits to total liabilities		86.92	%		86.77	%		86.88	%		87.73	%		87.37	%		86.92	%		87.37	%
Deposits per branch	$	67,993		$	66,890		$	66,561		$	65,664		$	63,558		$	67,993		$	63,558
Tangible book value per common share(2)	$	14.62		$	14.30		$	13.79		$	13.70		$	13.17		$	14.62		$	13.17
Asset Quality Ratios
Non-performing loans and leases to total    loans and leases held for investment, net    before ALLL		1.00	%		1.09	%		0.95	%		0.85	%		0.79	%		1.00	%		0.79	%
ALLL to total loans and leases held for    investment, net before ALLL		0.84	%		0.82	%		0.81	%		0.76	%		0.72	%		0.84	%		0.72	%
Net charge-offs to average total loans and    leases held for investment, net before    ALLL		0.42	%		0.56	%		0.25	%		0.24	%		0.24	%		0.37	%		0.35	%
Acquisition accounting adjustments(5)	$	28,511		$	31,053		$	37,109		$	29,341		$	34,029		$	28,511		$	34,029
Capital Ratios
Common equity to total assets		13.40	%		13.34	%		13.12	%		13.14	%		12.95	%		13.40	%		12.95	%
Tangible common equity to tangible    assets(2)		10.47	%		10.38	%		10.09	%		10.28	%		10.01	%		10.47	%		10.01	%
Leverage ratio		11.39	%		11.14	%		11.09	%		11.27	%		11.05	%		11.39	%		11.05	%
Common equity tier 1 capital ratio		12.36	%		12.12	%		11.65	%		12.14	%		11.85	%		12.36	%		11.85	%
Tier 1 capital ratio		13.67	%		13.43	%		12.96	%		13.57	%		13.30	%		13.67	%		13.30	%
Total capital ratio		14.43	%		14.19	%		13.71	%		14.28	%		13.99	%		14.43	%		13.99	%

(1) Represents non-interest expense less amortization of intangible assets divided by net interest income and non-interest income.

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

(3) Calculation excludes impairment charges, merger-related expenses, and core systems conversion expense.

(4) Calculation excludes incremental income tax expense or benefit related to changes in corporate income tax rates and reversal of valuation allowance on net deferred tax assets.

(5) 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.

Page 18 of 22

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 December 31,
	2019								2018
(dollars in thousands)	Average Balance(5)			Interest Inc / Exp		Average Yield / Rate			Average Balance(5)			Interest Inc / Exp		Average Yield / Rate
ASSETS
Cash and cash equivalents	$	38,624		$	220		2.25	%	$	91,852		$	316		1.37	%
Loans and leases(1)		3,807,731			58,203		6.06	%		3,470,264			56,646		6.48	%
Taxable securities		1,025,975			6,963		2.69	%		886,349			5,578		2.50	%
Tax-exempt securities(2)		84,640			529		2.48	%		56,649			355		2.48	%
Total interest-earning assets	$	4,956,970		$	65,915		5.28	%	$	4,505,114		$	62,895		5.54	%
Allowance for loan and lease losses		(32,688	)							(24,215	)
All other assets		502,764								415,535
TOTAL ASSETS	$	5,427,046							$	4,896,434
LIABILITIES AND STOCKHOLDERS’    EQUITY
Deposits
Interest checking	$	399,065		$	612		0.61	%	$	308,821		$	407		0.52	%
Money market accounts		790,565			1,945		0.98	%		653,141			1,505		0.91	%
Savings		474,394			63		0.05	%		489,486			157		0.13	%
Time deposits		1,231,641			6,705		2.16	%		1,130,308			5,046		1.77	%
Total interest-bearing    deposits		2,895,665			9,325		1.28	%		2,581,756			7,115		1.09	%
Federal Home Loan Bank advances		371,730			1,917		2.05	%		360,891			1,719		1.89	%
Other borrowed funds		80,039			759		3.76	%		65,226			800		4.86	%
Total borrowings		451,769			2,676		2.35	%		426,117			2,519		2.35	%
Total interest-bearing liabilities	$	3,347,434		$	12,001		1.42	%	$	3,007,873		$	9,634		1.27	%
Non-interest-bearing demand deposits		1,288,960								1,194,445
Other liabilities		44,907								54,231
Total stockholders’ equity		745,745								639,885
TOTAL LIABILITIES AND    STOCKHOLDERS’ EQUITY	$	5,427,046							$	4,896,434
Net interest spread(3)							3.86	%							4.27	%
Net interest income				$	53,914							$	53,261
Net interest margin(4)							4.32	%							4.69	%
Net loan accretion impact on margin				$	5,418		0.43	%				$	6,351		0.56	%

(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.

Page 19 of 22

BYLINE BANCORP, INC. AND SUBSIDIARIES

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

	For the Year Ended December 31,
	2019								2018
(dollars in thousands)	Average Balance(5)			Interest Inc / Exp		Average Yield / Rate			Average Balance(5)			Interest Inc / Exp		Average Yield / Rate
ASSETS
Cash and cash equivalents	$	43,636		$	1,018		2.33	%	$	76,710		$	964		1.26	%
Loans and leases(1)		3,741,607			235,501		6.29	%		2,947,458			184,972		6.28	%
Taxable securities		981,453			26,509		2.70	%		817,360			19,920		2.44	%
Tax-exempt securities(2)		71,173			1,786		2.51	%		44,245			1,095		2.47	%
Total interest-earning assets	$	4,837,869		$	264,814		5.47	%	$	3,885,773		$	206,951		5.33	%
Allowance for loan and lease losses		(29,650	)							(20,378	)
All other assets		468,823								373,207
TOTAL ASSETS	$	5,277,042							$	4,238,602
LIABILITIES AND STOCKHOLDERS’    EQUITY
Deposits
Interest checking	$	346,329		$	2,002		0.58	%	$	260,405		$	953		0.37	%
Money market accounts		709,379			7,111		1.00	%		522,599			3,857		0.74	%
Savings		474,709			434		0.09	%		465,322			465		0.10	%
Time deposits		1,244,070			26,778		2.15	%		954,686			14,054		1.47	%
Total interest-bearing    deposits		2,774,487			36,325		1.31	%		2,203,012			19,329		0.88	%
Federal Home Loan Bank advances		440,478			8,961		2.03	%		365,533			6,160		1.69	%
Other borrowed funds		73,703			3,243		4.40	%		60,259			2,857		4.74	%
Total borrowings		514,181			12,204		2.37	%		425,792			9,017		2.12	%
Total interest-bearing liabilities	$	3,288,668		$	48,529		1.48	%	$	2,628,804		$	28,346		1.08	%
Non-interest-bearing demand deposits		1,238,410								1,002,955
Other liabilities		41,764								45,275
Total stockholders’ equity		708,200								561,568
TOTAL LIABILITIES AND    STOCKHOLDERS’ EQUITY	$	5,277,042							$	4,238,602
Net interest spread(3)							3.99	%							4.25	%
Net interest income				$	216,285							$	178,605
Net interest margin(4)							4.47	%							4.60	%
Net loan accretion impact on margin				$	23,190		0.48	%				$	20,550		0.53	%

(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 divided by total average earning assets.

(5) Average balances are average daily balances.

Byline Bancorp, Inc.

Page 20 of 22

BYLINE BANCORP, INC. AND SUBSIDIARIES

RECONCILIATION OF NON-GAAP FINANCIAL MEASURES (unaudited)

	As of or For the Three Months Ended															As of or For the Year Ended
(dollars in thousands, except per share data)	December 31, 2019			September 30, 2019			June 30, 2019			March 31, 2019			December 31, 2018			December 31, 2019			December 31, 2018
Net income and earnings per share    excluding significant items
Reported Net Income	$	15,852		$	15,342		$	13,211		$	12,597		$	17,121		$	57,002		$	41,193
Significant items:
Incremental income tax benefit    attributed to federal income tax reform		—			—			—			—			—			—			(724	)
Impairment charges on assets held for sale		111			67			—			392			372			570			628
Merger-related expense		127			1,043			3,152			18			266			4,340			2,056
Core system conversion expense		48			77			394			1,530			625			2,049			9,847
Tax benefit on impairment charges and    merger-related expenses		(79	)		(369	)		(842	)		(540	)		(297	)		(1,830	)		(3,275	)
Adjusted Net Income	$	16,059		$	16,160		$	15,915		$	13,997		$	18,087		$	62,131		$	49,725
Reported Diluted Earnings per Share	$	0.41		$	0.39		$	0.34		$	0.34		$	0.46		$	1.48		$	1.18
Significant items:
Incremental income tax benefit    attributed to federal income tax reform		—			—			—			—			—			—			(0.02	)
Impairment charges on assets held for sale		—			—			—			0.01			0.01			0.01			0.02
Merger-related expense		0.01			0.03			0.08			—			0.01			0.12			0.06
Core system conversion expense		—			—			0.01			0.04			0.02			0.05			0.29
Tax benefit on impairment charges and    merger-related expenses		—			(0.01	)		(0.02	)		(0.01	)		(0.01	)		(0.04	)		(0.10	)
Adjusted Diluted Earnings per Share	$	0.42		$	0.41		$	0.41		$	0.38		$	0.49		$	1.62		$	1.43

Byline Bancorp, Inc.

Page 21 of 22

BYLINE BANCORP, INC. AND SUBSIDIARIES

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

	As of or For the Three Months Ended															As of or For the Year Ended
(dollars in thousands, except per share data,    ratios annualized, where applicable)	December 31, 2019			September 30, 2019			June 30, 2019			March 31, 2019			December 31, 2018			December 31, 2019			December 31, 2018
Adjusted non-interest expense:
Non-interest expense	$	43,694		$	45,448		$	43,954		$	40,679		$	40,088		$	173,775		$	154,896
Less: Significant items
Impairment charges on assets held for sale		111			67			—			392			372			570			628
Merger-related expense		127			1,043			3,152			18			266			4,340			2,056
Core system conversion expense		48			77			394			1,530			625			2,049			9,847
Adjusted non-interest expense	$	43,408		$	44,261		$	40,408		$	38,739		$	38,825		$	166,816		$	142,365
Adjusted non-interest expense excluding    amortization of intangible assets:
Adjusted non-interest expense	$	43,408		$	44,261		$	40,408		$	38,739		$	38,825		$	166,816		$	142,365
Less: Amortization of intangible assets		2,003			2,003			1,959			1,773			1,834			7,738			5,629
Adjusted non-interest expense excluding    amortization of intangible assets	$	41,405		$	42,258		$	38,449		$	36,966		$	36,991		$	159,078		$	136,736
Pre-tax pre-provision net income:
Pre-tax income	$	20,349		$	21,265		$	18,286		$	17,395		$	23,581		$	77,295		$	55,440
Add: Provision for loan and lease losses		4,387			5,931			6,391			3,999			3,882			20,708			18,795
Pre-tax pre-provision net income	$	24,736		$	27,196		$	24,677		$	21,394		$	27,463		$	98,003		$	74,235
Adjusted pre-tax pre-provision net income:
Pre-tax pre-provision net income	$	24,736		$	27,196		$	24,677		$	21,394		$	27,463		$	98,003		$	74,235
Impairment charges on assets held for sale		111			67			—			392			372			570			628
Merger-related expense		127			1,043			3,152			18			266			4,340			2,056
Core system conversion expense		48			77			394			1,530			625			2,049			9,847
Adjusted pre-tax pre-provision net income	$	25,022		$	28,383		$	28,223		$	23,334		$	28,726		$	104,962		$	86,766
Total revenues:
Net interest income	$	53,914		$	57,838		$	54,448		$	50,085		$	53,261		$	216,285		$	178,605
Add: Non-interest income		14,516			14,806			14,183			11,988			14,290			55,493			50,526
Total revenues	$	68,430		$	72,644		$	68,631		$	62,073		$	67,551		$	271,778		$	229,131
Tangible common stockholders' equity:
Total stockholders' equity	$	750,115		$	735,866		$	717,675		$	668,749		$	650,672		$	750,115		$	650,672
Less: Preferred stock		10,438			10,438			10,438			10,438			10,438			10,438			10,438
Less: Goodwill		148,353			145,638			145,638			128,177			128,177			148,353			128,177
Less: Core deposit intangibles and other intangibles		31,902			33,905			35,908			31,646			33,419			31,902			33,419
Tangible common stockholders' equity	$	559,422		$	545,885		$	525,691		$	498,488		$	478,638		$	559,422		$	478,638
Tangible assets:
Total assets	$	5,521,809		$	5,438,278		$	5,391,236		$	5,009,925		$	4,942,574		$	5,521,809		$	4,942,574
Less: Goodwill		148,353			145,638			145,638			128,177			128,177			148,353			128,177
Less: Core deposit intangibles and other intangibles		31,902			33,905			35,908			31,646			33,419			31,902			33,419
Tangible assets	$	5,341,554		$	5,258,735		$	5,209,690		$	4,850,102		$	4,780,978		$	5,341,554		$	4,780,978
Average tangible common stockholders' equity:
Average total stockholders' equity	$	745,745		$	729,781		$	696,928		$	659,156		$	639,885		$	708,200		$	561,568
Less: Average preferred stock		10,438			10,438			10,438			10,438			10,438			10,438			10,438
Less: Average goodwill		146,202			145,638			140,073			128,177			127,543			140,087			97,349
Less: Average core deposit intangibles and other    intangibles		32,990			35,102			35,163			32,747			34,564			34,004			27,679
Average tangible common stockholders' equity	$	556,115		$	538,603		$	511,254		$	487,794		$	467,340		$	523,671		$	426,102
Average tangible assets:
Average total assets	$	5,427,046		$	5,435,762		$	5,274,820		$	4,963,706		$	4,896,434		$	5,277,042		$	4,238,602
Less: Average goodwill		146,202			145,638			140,073			128,177			127,543			140,087			97,349
Less: Average core deposit intangibles and other    intangibles		32,990			35,102			35,163			32,747			34,564			34,004			27,679
Average tangible assets	$	5,247,854		$	5,255,022		$	5,099,584		$	4,802,782		$	4,734,327		$	5,102,951		$	4,113,574
Tangible net income available to common    stockholders:
Net income available to common stockholders	$	15,656		$	15,146		$	13,016		$	12,401		$	16,925		$	56,219		$	40,410
Add: After-tax intangible asset amortization		1,445			1,445			1,413			1,279			1,323			5,583			4,061
Tangible net income available to common    stockholders	$	17,101		$	16,591		$	14,429		$	13,680		$	18,248		$	61,802		$	44,471
Adjusted tangible net income available to common    stockholders:
Tangible net income available to common    stockholders	$	17,101		$	16,591		$	14,429		$	13,680		$	18,248		$	61,802		$	44,471
Incremental income tax benefit attributed to    federal income tax reform		—			—			—			—			—			—			(724	)
Impairment charges on assets held for sale		111			67			—			392			372			570			628
Merger-related expense		127			1,043			3,152			18			266			4,340			2,056
Core system conversion expense		48			77			394			1,530			625			2,049			9,847
Tax benefit on significant items		(79	)		(369	)		(842	)		(540	)		(297	)		(1,830	)		(3,275	)
Adjusted tangible net income available to    common stockholders	$	17,308		$	17,409		$	17,133		$	15,080		$	19,214		$	66,931		$	53,003

Byline Bancorp, Inc.

Page 22 of 22

BYLINE BANCORP, INC. AND SUBSIDIARIES

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

	As of or For the Three Months Ended															As of or For the Year Ended
(dollars in thousands, except share and per share    data, ratios annualized, where applicable)	December 31, 2019			September 30, 2019			June 30, 2019			March 31, 2019			December 31, 2018			December 31, 2019			December 31, 2018
Pre-tax pre-provision return on average assets:
Pre-tax pre-provision net income	$	24,736		$	27,196		$	24,677		$	21,394		$	27,463		$	98,003		$	74,235
Average total assets		5,427,046			5,435,762			5,274,820			4,963,706			4,896,434			5,277,042			4,238,602
Pre-tax pre-provision return on average assets		1.81	%		1.98	%		1.88	%		1.75	%		2.23	%		1.86	%		1.75	%
Adjusted pre-tax pre-provision return on average    assets:
Adjusted pre-tax pre-provision net income	$	25,022		$	28,383		$	28,223		$	23,334		$	28,726		$	104,962		$	86,766
Average total assets		5,427,046			5,435,762			5,274,820			4,963,706			4,896,434			5,277,042			4,238,602
Adjusted pre-tax pre-provision return on average    assets		1.83	%		2.07	%		2.15	%		1.91	%		2.33	%		1.99	%		2.05	%
Non-interest income to total revenues:
Non-interest income	$	14,516		$	14,806		$	14,183		$	11,988		$	14,290		$	55,493		$	50,526
Total revenues		68,430			72,644			68,631			62,073			67,551			271,778			229,131
Non-interest income to total revenues		21.21	%		20.38	%		20.67	%		19.31	%		21.16	%		20.42	%		22.05	%
Adjusted non-interest expense to average assets:
Adjusted non-interest expense	$	43,408		$	44,261		$	40,408		$	38,739		$	38,825		$	166,816		$	142,365
Average total assets		5,427,046			5,435,762			5,274,820			4,963,706			4,896,434			5,277,042			4,238,602
Adjusted non-interest expense to average assets		3.17	%		3.23	%		3.07	%		3.17	%		3.15	%		3.16	%		3.36	%
Adjusted efficiency ratio:
Adjusted non-interest expense excluding    amortization of intangible assets	$	41,405		$	42,258		$	38,449		$	36,966		$	36,991		$	159,078		$	136,736
Total revenues		68,430			72,644			68,631			62,073			67,551			271,778			229,131
Adjusted efficiency ratio		60.51	%		58.17	%		56.02	%		59.55	%		54.76	%		58.53	%		59.68	%
Adjusted return on average assets:
Adjusted net income	$	16,059		$	16,160		$	15,915		$	13,997		$	18,087		$	62,131		$	49,725
Average total assets		5,427,046			5,435,762			5,274,820			4,963,706			4,896,434			5,277,042			4,238,602
Adjusted return on average assets		1.17	%		1.18	%		1.21	%		1.14	%		1.47	%		1.18	%		1.17	%
Adjusted return on average stockholders' equity:
Adjusted net income	$	16,059		$	16,160		$	15,915		$	13,997		$	18,087		$	62,131		$	49,725
Average stockholders' equity		745,745			729,781			696,928			659,156			639,885			708,200			561,568
Adjusted return on average stockholders' equity		8.54	%		8.78	%		9.16	%		8.61	%		11.21	%		8.77	%		8.85	%
Tangible common equity to tangible assets:
Tangible common equity	$	559,422		$	545,885		$	525,691		$	498,488		$	478,638		$	559,422		$	478,638
Tangible assets		5,341,554			5,258,735			5,209,690			4,850,102			4,780,978			5,341,554			4,780,978
Tangible common equity to tangible assets		10.47	%		10.38	%		10.09	%		10.28	%		10.01	%		10.47	%		10.01	%
Return on average tangible common stockholders'    equity:
Tangible net income available to common    stockholders	$	17,101		$	16,591		$	14,429		$	13,680		$	18,248		$	61,802		$	44,471
Average tangible common stockholders' equity		556,115			538,603			511,254			487,794			467,340			523,671			426,102
Return on average tangible common    stockholders' equity		12.20	%		12.22	%		11.32	%		11.37	%		15.49	%		11.80	%		10.44	%
Adjusted return on average tangible common    stockholders' equity:
Adjusted tangible net income available to common    stockholders	$	17,308		$	17,409		$	17,133		$	15,080		$	19,214		$	66,931		$	53,003
Average tangible common stockholders' equity		556,115			538,603			511,254			487,794			467,340			523,671			426,102
Adjusted return on average tangible common    stockholders' equity		12.35	%		12.82	%		13.44	%		12.54	%		16.31	%		12.78	%		12.44	%
Tangible book value per share:
Tangible common equity	$	559,422		$	545,885		$	525,691		$	498,488		$	478,638		$	559,422		$	478,638
Common shares outstanding		38,256,028			38,169,126			38,115,219			36,398,144			36,343,239			38,256,028			36,343,239
Tangible book value per share	$	14.62		$	14.30		$	13.79		$	13.70		$	13.17		$	14.62		$	13.17