Business Wire | Jan 28, 2021 04:48PM EST

Byline Bancorp, Inc. Reports Full Year and Fourth Quarter 2020 Financial Results

Jan. 28, 2021

CHICAGO--(BUSINESS WIRE)--Jan. 28, 2021--Byline Bancorp, Inc. (the "Company" or "Byline")(NYSE: BY), the parent company of Byline Bank (the "Bank"), today reported net income of $12.3 million, or $0.31 per diluted share, for the fourth quarter of 2020, compared with net income of $13.1 million, or $0.34 per diluted share, for the third quarter of 2020. The Company's financial results for 2020 include impairment charges on assets held for sale. Excluding these charges, adjusted net income1 was $15.2 million, or $0.38 per adjusted diluted share, for the fourth quarter of 2020, compared with $13.1 million, or $0.34 per adjusted diluted share1, for the third quarter of 2020.

Alberto J. Paracchini, President and Chief Executive Officer of Byline, commented, "We continued to see an improvement in business activity during the fourth quarter, resulting in an increase in loan and lease growth excluding runoff of PPP loans, strong inflows of commercial noninterest-bearing deposits, and higher net interest income. Combined with our continued expense discipline, we produced a strong quarter of earnings and pre-tax, pre-provision income. Importantly, asset quality remains strong as we saw a decline in non-performing assets during the quarter, although we remain conservative with respect to our reserves and further increased our allowance to 1.53% of total loans.

"Since the recap in 2013, we have consistently executed well on our strategies to enhance the value of the Byline franchise and we believe we are well positioned to deliver another strong year in 2021. Our loan pipeline continues to build as the banking teams we added over the past two years gain traction and overall loan demand improves. With a more efficient and productive retail branch network following our recent branch consolidations, we believe that we can effectively manage expenses and realize more operating leverage as we continue to grow our balance sheet. We believe that the actions we have taken to enhance efficiencies combined with the investments we have made to improve our ability to serve existing customers and attract new customers to Byline will continue to result in a higher level of earnings and profitability in the years to come. Given our strong financial performance and healthy outlook, we are well positioned to increase the amount of capital that we return to shareholders through our quarterly dividend, doubling to $0.06 per share, along with the resumption on our stock repurchase program as market conditions permit," said Mr. Paracchini.

On January 28, 2021, the Board approved the appointment of the Company's Chairman, Roberto R. Herencia, as executive Chairman and Chief Executive Officer of Byline Bancorp, Inc., effective February 12, 2021. Alberto J. Paracchini will continue in his role as President of Byline Bancorp, Inc. Mr. Paracchini will also continue in his role as President and Chief Executive Officer of Byline Bank, reporting directly to Mr. Herencia, and remains a director of Byline Bancorp, Inc. and Byline Bank. Mr. Herencia is a founder of the Company and has been Chairman of the Board since 2013. In his role as non-executive Chairman, he has been closely involved with overseeing management execution of the Company's long-term strategy.

The changes are intended to accelerate and support the execution of the Company's strategic plan, specifically its growth strategy, as a leading commercial bank in the Chicago MSA.

"Having Roberto and Alberto work together in this capacity doubles up on their considerable talents and close relationship for the benefit of the Company," said Antonio Del Valle Perochena, director and chair of the Governance and Nominating Committee of Byline Bancorp and Byline Bank. "I welcome the continued support and close collaboration with Roberto, as we work to accelerate our growth strategy," said Alberto Paracchini. "Alberto and I have worked together for almost 30 years and I am delighted to continue to do so," added Herencia.

Board Declares Cash Dividend of $0.06 per Share

On January 26, 2021, the Company's Board of Directors declared a cash dividend of $0.06 per share, payable on February 23, 2021, to stockholders of record of the Company's common stock as of February 9, 2021.

Fourth Quarter 2020 Updates

Branch Update

On December 31, 2020, as previously announced, we closed 11 branches. The branch consolidations resulted in one?time charges of approximately $6.2 million, of which $5.1 million was recorded during the fourth quarter of 2020 related to premises and equipment.

Byline Bank currently operates 46 branch locations: 45 located in the Chicagoland area and one in the Milwaukee area. In response to COVID-19 safety concerns, 22 branches are operating as drive-thru only locations and 24 branches are offering full lobby service.

Paycheck Protection Program (PPP)

As of December 31, 2020, over $366.9 million of PPP loans were in various stages of the SBA forgiveness process, with over $110.1 million approved for forgiveness by the SBA. Byline Bank began accepting applications for the second round of PPP financing on January 11, 2021 and on January 19, 2021, the SBA opened its portal for all participating lenders to submit PPP applications. As of January 26, 2021, we have received over 1,900 applications and approved the funding of $166.1 million.

The following table presents the net PPP loans outstanding as of December 31, 2020:

PPP Loan Size

(dollars in $0 - $50,001 $150,001 - Overthousands) $50,000 - $2,000,000 Total $150,000 $2,000,000

Principal $ 29,003 $ 67,338 $ 346,063 $ 84,640 $ 527,044 outstanding

Unearnedprocessing (1,009 ) (2,270 ) (8,517 ) (537 ) (12,333 )fee

Deferred 1,519 787 772 26 3,104 cost

PPP loans, $ 29,513 $ 65,855 $ 338,318 $ 84,129 $ 517,815 net

Number of 1,538 820 803 27 3,188 loans

Loan and Lease Deferrals

In support of our customers impacted by the COVID-19 pandemic and keeping with regulatory guidance, we began offering relief through payment deferrals during the first quarter of 2020. Under the CARES Act the SBA was authorized to pay principal and interest on covered 7(a) loans. Beginning in the fourth quarter, this payment subsidy expired for some borrowers, and we began offering payment deferrals on SBA 7(a) loans. Under the Economic Aid Act enacted on December 27, 2020, the SBA will again make payments on covered loans for three months beginning with the first payment due on the loan on or after February 1, 2021. We estimate that approximately 95% of our active government guaranteed deferrals as of December 31, 2020 will receive this subsidy. Certain borrowers in the most impacted industries, including accommodation and food service, will receive three months plus an addition five months of principal and interest payments. We estimate that approximately 60% of our active government guaranteed deferrals as of December 31, 2020 will receive this additional five months of subsidy.

The following table shows active deferrals by category at the dates indicated (dollars in thousands):

Active Deferrals

December 31, 2020 As of December 31, 2020 As of September 30, 2020 Change from September 30, 2020

Percentage Percentage of of Count Amount Total Count Amount Total Count Amount Loans Loans and Leases and Leases ^(2) ^(2)

Commercial 21 $ 22,905 0.60 % 19 $ 23,027 0.61 % 2 $ (122 )Banking

Consumer 2 703 0.02 % 11 1,945 0.05 % (9 ) $ (1,242 )Loans

Leasing 30 1,528 0.04 % 46 1,829 0.03 % (16 ) $ (301 )

GovernmentGuaranteed 262 75,444 1.97 % 3 1,141 0.05 % 259 $ 74,303 Lending

Total 315 $ 100,580 2.63 % 79 $ 27,942 0.74 % 236 72,638

STATEMENTS OF OPERATIONS

Net Interest Income

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

December 31, 2020 Three Months Ended Percentage Change from

December September December September December 31, 30, 31, 30, 31,

(dollars in 2020 2020 2019 2020 2019 thousands)

INTEREST ANDDIVIDEND INCOME

Interest andfees on $ 53,441 $ 51,036 $ 58,203 4.7 % (8.2 )loans and %leases

Interest on 6,252 7,070 7,212 (11.6 ) (13.3 )securities % %

Otherinterest and 232 128 500 82.4 % (53.5 )dividend %income

Totalinterest and 59,925 58,234 65,915 2.9 % (9.1 )dividend %income

INTEREST EXPENSE

Deposits 1,814 2,760 9,325 (34.3 ) (80.6 ) % %

Other 480 465 1,989 3.3 % (75.9 )borrowings %

Subordinatednotes and 1,611 1,485 687 8.5 % 134.6 %debentures

Total ) )interest 3,905 4,710 12,001 (17.1 % (67.5 %expense

Net interest $ 56,020 $ 53,524 $ 53,914 4.7 % 3.9 %income

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

For the Three Months Ended

December 31, 2020 September 30, 2020

Interest Average Interest Average Average Average(dollars in thousands) Inc / Yield / Inc / Yield / Balance^(5) Exp Balance^(5) Exp Rate Rate

ASSETS

Cash and cash equivalents $ 39,500 $ 21 0.22 % $ 48,678 $ 25 0.20 %

Loans and leases^(1) 4,340,388 53,441 4.90 % 4,360,203 51,036 4.66 %

Taxable securities 1,364,980 5,555 1.62 % 1,364,516 6,341 1.85 %

Tax-exempt securities^(2) 168,878 1,148 2.71 % 143,157 1,054 2.93 %

Total interest-earning $ 5,913,746 $ 60,165 4.05 % $ 5,916,554 $ 58,456 3.93 %assets

Allowance for loan and (63,891 ) (53,964 ) lease losses

All other assets 550,766 538,700

TOTAL ASSETS $ 6,400,621 $ 6,401,290

LIABILITIES ANDSTOCKHOLDERS'

EQUITY

Deposits

Interest checking $ 578,520 $ 287 0.20 % $ 565,917 $ 226 0.16 %

Money market accounts 1,152,012 444 0.15 % 1,202,016 634 0.21 %

Savings 554,633 66 0.05 % 535,396 64 0.05 %

Time deposits 802,409 1,017 0.50 % 870,227 1,836 0.84 %

Total interest-bearing 3,087,574 1,814 0.23 % 3,173,556 2,760 0.35 %deposits

Other borrowings 577,309 480 0.33 % 538,237 465 0.34 %

Subordinated notes and 109,704 1,611 5.84 % 100,756 1,485 5.86 %debentures

Total borrowings 687,013 2,091 1.21 % 638,993 1,950 1.21 %

Total interest-bearing $ 3,774,587 $ 3,905 0.41 % $ 3,812,549 $ 4,710 0.49 %liabilities

Non-interest-bearing 1,761,902 1,742,787 demand deposits

Other liabilities 58,539 54,843

Total stockholders' equity 805,593 791,111

TOTAL LIABILITIES AND $ 6,400,621 $ 6,401,290 STOCKHOLDERS' EQUITY

Net interest spread^(3) 3.64 % 3.44 %

Net interest income, fully $ 56,260 $ 53,746 taxable equivalent

Net interest margin, fully 3.78 % 3.61 %taxable equivalent^(2)(4)

Tax-equivalent adjustment (240 ) 0.01 % (222 ) 0.01 %

Net interest income $ 56,020 $ 53,524

Net interest margin^(4) 3.77 % 3.60 %



Net loan accretion impact $ 2,304 0.16 % $ 3,911 0.26 %on margin

(1)

Loan and lease balances are net of deferred origination fees and costs and initial indirect costs. Non-accrual loans and leases are included in total loan and lease balances.

(2)

Interest income and rates include the effects of a tax equivalent adjustment to adjust tax exempt investment income on tax exempt investment securities to a fully taxable basis, assuming a federal income tax rate of 21%.

(3)

Represents the average rate earned on interest-earning assets minus the average rate paid on interest-bearing liabilities.

(4)

Represents net interest income (annualized) divided by total average earning assets.

(5)

Average balances are average daily balances.

Net interest income for the fourth quarter of 2020 was $56.0 million, an increase of $2.5 million, or 4.7%, from the third quarter of 2020.

The increase in net interest income was primarily due to:

* An increase of $2.4 million in interest income on loans and leases, due to the recognition of net fee income related to PPP loan forgiveness; and * A decrease of $946,000 in interest expense on deposits, due to maturities of higher-rate time deposits and lower rates paid on money market accounts;

Partially offset by:

* A decrease of $818,000 in interest income on securities, due to elevated prepayment speeds and runoff of higher yielding securities resulting in lower yields.

Tax-equivalent net interest margin for the fourth quarter of 2020 was 3.78%, an increase of 17 basis points compared to 3.61% for the third quarter of 2020. Total net accretion income on acquired loans contributed 16 basis points to the net interest margin for the fourth quarter of 2020 compared to 26 basis points for the third quarter of 2020, a decrease of 10 basis points. PPP interest and net fees combined were $5.5 million, for the fourth quarter 2020 compared to $3.5 million for the third quarter 2020.

The average cost of total deposits was 0.15% for the fourth quarter of 2020, a decrease of seven basis points compared to the third quarter of 2020, mainly due to a lower average cost of time deposits and money market accounts, as well as a favorable change in deposit mix. Average non-interest-bearing demand deposits increased $19.1 million, while average time deposits decreased by $67.8 million. Average non-interest-bearing demand deposits were 36.3% of average total deposits for the fourth quarter of 2020 compared to 35.4% the third quarter of 2020.

Provision for Loan and Lease Losses

The provision for loan and lease losses was $10.2 million for the fourth quarter of 2020, a decrease of $5.5 million compared to $15.7 million for the third quarter of 2020. The fourth quarter included allocations of $5.4 million for originated loans and leases, $1.4 million for acquired impaired loans, and $3.4 million for acquired non-impaired loans. The provision during the fourth quarter of 2020 included net specific impairments of $5.0 million primarily driven by the unguaranteed portion of government guaranteed loans.

Non-interest Income

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

Loan and lease balances are net of deferred origination fees and costs and(1) initial indirect costs. Non-accrual loans and leases are included in total loan and lease balances.

Interest income and rates include the effects of a tax equivalent(2) adjustment to adjust tax exempt investment income on tax exempt investment securities to a fully taxable basis, assuming a federal income tax rate of 21%.

(3) Represents the average rate earned on interest-earning assets minus the average rate paid on interest-bearing liabilities.

(4) Represents net interest income (annualized) divided by total average earning assets.

(5) Average balances are average daily balances.

Net interest income for the fourth quarter of 2020 was $56.0 million, an increase of $2.5 million, or 4.7%, from the third quarter of 2020.

The increase in net interest income was primarily due to:

* An increase of $2.4 million in interest income on loans and leases, due to the recognition of net fee income related to PPP loan forgiveness; and * A decrease of $946,000 in interest expense on deposits, due to maturities of higher-rate time deposits and lower rates paid on money market accounts;

Partially offset by:

* A decrease of $818,000 in interest income on securities, due to elevated prepayment speeds and runoff of higher yielding securities resulting in lower yields.

Tax-equivalent net interest margin for the fourth quarter of 2020 was 3.78%, an increase of 17 basis points compared to 3.61% for the third quarter of 2020. Total net accretion income on acquired loans contributed 16 basis points to the net interest margin for the fourth quarter of 2020 compared to 26 basis points for the third quarter of 2020, a decrease of 10 basis points. PPP interest and net fees combined were $5.5 million, for the fourth quarter 2020 compared to $3.5 million for the third quarter 2020.

The average cost of total deposits was 0.15% for the fourth quarter of 2020, a decrease of seven basis points compared to the third quarter of 2020, mainly due to a lower average cost of time deposits and money market accounts, as well as a favorable change in deposit mix. Average non-interest-bearing demand deposits increased $19.1 million, while average time deposits decreased by $67.8 million. Average non-interest-bearing demand deposits were 36.3% of average total deposits for the fourth quarter of 2020 compared to 35.4% the third quarter of 2020.

Provision for Loan and Lease Losses

The provision for loan and lease losses was $10.2 million for the fourth quarter of 2020, a decrease of $5.5 million compared to $15.7 million for the third quarter of 2020. The fourth quarter included allocations of $5.4 million for originated loans and leases, $1.4 million for acquired impaired loans, and $3.4 million for acquired non-impaired loans. The provision during the fourth quarter of 2020 included net specific impairments of $5.0 million primarily driven by the unguaranteed portion of government guaranteed loans.

Non-interest Income

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

December 31, 2020 Three Months Ended Change from

December September December September December 31, 30, 31, 30, 31,

(dollars in 2020 2020 2019 2020 2019 thousands)

NON-INTEREST INCOME

Fees and servicecharges on $ 1,740 $ 1,603 $ 1,635 8.5 % 6.3 %deposits

Loan servicing 2,645 2,936 2,834 (9.9 ) (6.7 )revenue % %

Loan servicing (2,298 ) 1,122 (2,545 ) (304.7 ) (9.7 )asset revaluation % %

ATM and 1,076 1,028 1,150 4.7 % (6.4 )interchange fees %

Net gains on salesof securities 2,889 1,037 - 178.7 % 100.0 %available-for-sale

Change in fairvalue of equity 428 154 381 178.2 % 12.4 %securities, net

Net gains on sales 9,449 12,671 8,735 (25.4 ) 8.2 %of loans %

Wealth management 710 693 704 2.5 % 0.9 %and trust income

Other non-interest 1,051 990 1,648 6.2 % (36.1 )income %

Total non-interest $ 17,690 $ 22,234 $ 14,542 (20.4 ) 21.6 %income %

Non-interest income for the fourth quarter of 2020 was $17.7 million, a decrease of $4.5 million, or 20.4%, compared to $22.2 million for the third quarter of 2020.

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

* A decrease of $3.2 million in net gains on sales of loans, mainly due to a decrease in volume of sales of government guaranteed loans and lower premiums received on loans sold; * A loan servicing asset revaluation charge of $2.3 million compared to an upward adjustment of $1.1 million in the prior quarter; and

Partially offset by:

* An increase of $1.9 million in net gains on sales of securities available-for-sale resulting from increased volume of sales.

During the fourth quarter of 2020, we sold $108.1 million of U.S. government guaranteed loans compared to $121.2 million during the third quarter of 2020. The decrease in sales was driven by lower inventory of U.S. government guaranteed loans.

Non-interest Expense

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

December 31, 2020 Three Months Ended Change from

December September December September December 31, 30, 31, 30, 31,

(dollars in 2020 2020 2019 2020 2019 thousands)

NON-INTEREST EXPENSE

Salaries and ) )employee $ 22,559 $ 23,126 $ 24,228 (2.5 % (6.9 %benefits

Occupancyand 6,854 5,220 5,241 31.3 % 30.8 %equipmentexpense, net

Loan andlease 1,324 2,053 2,648 (35.5 ) (50.2 )related % %expenses

Legal, auditand other 1,336 2,390 2,340 (44.1 ) (42.9 )professional % %fees

Data 2,748 2,661 2,678 3.3 % 2.6 %processing

Net lossrecognizedon otherreal estate 495 349 122 42.1 % 306.4 %owned andotherrelatedexpenses

Otherintangible ) )assets 1,892 1,947 2,002 (2.8 % (5.5 %amortizationexpense

Othernon-interest 9,813 3,941 4,461 148.9 % 120.5 %expense

Totalnon-interest $ 47,021 $ 41,687 $ 43,720 12.8 % 7.5 %expense

Non-interest expense for the fourth quarter of 2020 was $47.0 million, an increase of $5.3 million, or 12.8%, from $41.7 million for the third quarter of 2020.

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

* An increase of $5.9 million in other non-interest expense, mainly due to $4.0 million for impairment charges on assets held for sale and $2.8 million for branch consolidations; and * An increase of $1.6 million in occupancy and equipment expense, net, which includes $1.4 million of lease obligations related to branch consolidations;

Partially offset by:

* A decrease of $1.1 million in legal, audit and other professional fees due to decreased legal expenses; and * A decrease of $729,000 in loan and lease related expenses due to decreases in the volume of, and broker fees on, U.S. Government guaranteed loan originations.

Our efficiency ratio was 61.22% for the fourth quarter of 2020 compared to 52.46% for the third quarter of 2020. Excluding impairment charges on assets held for sale, the Company's adjusted efficiency ratio1 was 55.77% for the fourth quarter of 2020, compared with 52.42% for the third quarter of 2020.

INCOME TAXES

We recorded income tax expense of $4.2 million during the fourth quarter of 2020, an effective tax rate of 25.3%, reflecting a benefit from tax exempt income, compared to $5.3 million during the third quarter of 2020, an effective tax rate of 28.7%.

STATEMENTS OF FINANCIAL CONDITION

Total assets were $6.4 billion at December 31, 2020, a decrease of $105.9 million compared to $6.5 billion at September 30, 2020.

The current quarter decrease was primarily due to:

* A decrease in securities of $61.6 million, principally a result of sales of mortgage backed securities during the quarter; * A decrease in loans held for sale of $41.1 million, due to the timing of government guaranteed loans sold during the previous quarter; and * A decrease in loans and leases of $34.0 million, due to $104.4 million decrease in the PPP portfolio offset by increases to new originations; Loans and leases excluding PPP increased $70.4 million during the quarter;

Partially offset by:

* An increase in other assets of $59.2 million due to the timing of settlement of government guaranteed loans and securities sold during the quarter and not yet settled.

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

December 31, 2020 September 30, 2020 December 31, 2019

(dollars in Amount % of Amount % of Amount % of thousands) Total Total Total

Originatedloans and leases

Commercial $ 1,017,587 23.5 % $ 919,862 21.0 % $ 792,263 20.9 %real estate

Residential 414,220 9.6 % 458,364 10.5 % 483,072 12.8 %real estate

Construction,landdevelopment, 226,408 5.2 % 234,017 5.3 % 235,794 6.2 %and

other land

Commercialand 1,276,527 29.4 % 1,214,099 27.8 % 1,160,996 30.7 %industrial

Paycheckprotection 517,815 11.9 % 622,191 14.2 % - 0.0 %program

Installment 1,267 0.0 % 2,346 0.1 % 5,372 0.1 %and other

Leasingfinancing 214,636 4.9 % 185,700 4.2 % 158,155 4.2 %receivables

Totaloriginated $ 3,668,460 84.5 % $ 3,636,579 83.1 % $ 2,835,652 74.9 %loans andleases

Acquiredimpaired loans

Commercial $ 108,484 2.5 % $ 117,114 2.7 % $ 135,914 3.6 %real estate

Residential 78,840 1.9 % 84,197 1.9 % 100,223 2.6 %real estate

Construction,landdevelopment, 4,113 0.1 % 4,804 0.1 % 5,373 0.1 %and

other land

Commercialand 10,178 0.2 % 10,489 0.3 % 16,909 0.4 %industrial

Installment 202 0.0 % 214 0.0 % 249 0.1 %and other

Totalacquired $ 201,817 4.7 % $ 216,818 5.0 % $ 258,668 6.8 %impairedloans

Acquirednon-impaired loans andleases

Commercial $ 295,599 6.8 % $ 310,879 7.1 % $ 348,365 9.2 %real estate

Residential 79,211 1.8 % 90,835 2.1 % 128,527 3.4 %real estate

Construction,landdevelopment, 212 0.0 % 213 0.0 % 37,490 1.0 %and

other land

Commercialand 82,195 1.9 % 104,221 2.4 % 153,660 4.1 %industrial

Installment 536 0.0 % 583 0.0 % 944 0.0 %and other

Leasingfinancing 12,505 0.3 % 14,389 0.3 % 22,355 0.6 %receivables

Totalacquirednon-impaired $ 470,258 10.8 % $ 521,120 11.9 % $ 691,341 18.3 %loans

and leases

Total loans $ 4,340,535 100.0 % $ 4,374,517 100.0 % $ 3,785,661 100.0 %and leases

Allowance forloan and (66,347 ) (61,258 ) (31,936 ) lease losses

Total loansand leases, net of $ 4,274,188 $ 4,313,259 $ 3,753,725 allowance for loan andlease losses

ASSET QUALITY

Non-Performing Assets

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

December 31, 2020 Change from

(dollars in December September December September Decemberthousands) 31, 30, 31, 30, 31, 2020 2020 2019 2020 2019

Non-performing assets:

Non-accrual )loans and $ 41,103 $ 43,196 $ 36,272 (4.8 % 13.3 %leases

Past due loansand leases 90days or more - - - - % - %and stillaccruinginterest

Totalnon-performing $ 41,103 $ 43,196 $ 36,272 (4.8 ) 13.3 %loans and %leases

Other real 6,350 8,150 9,896 (22.1 ) (35.8 )estate owned % %

Total )non-performing $ 47,453 $ 51,346 $ 46,168 (7.6 % 2.8 %assets

Accruingtroubled debt $ 2,495 $ 2,293 $ 1,771 8.8 % 40.9 %restructuredloans ^(1)

Totalnon-performingloans andleases as a 0.95 % 0.99 % 0.96 %

percentage oftotal loansand leases

Totalnon-performingassets as a 0.74 % 0.79 % 0.84 % percentage oftotal assets

Allowance forloan and leaselosses as apercentage of 161.42 % 141.81 % 88.05 % non-performingloans andleases



Non-performingassetsguaranteed by U.S.government:

Non-accrual ) )loans $ 3,645 $ 3,749 $ 4,232 (2.8 % (13.9 %guaranteed

Past due loans90 days ormore and still - - - - % - %accruinginterestguaranteed

Totalnon-performing $ 3,645 $ 3,749 $ 4,232 (2.8 ) (13.9 )loans % %guaranteed

Accruingtroubled debtrestructured $ - $ - $ - - % - %loansguaranteed ^(1)

Totalnon-performingloans andleases not 0.86 % 0.90 % 0.85 % guaranteed asa percentageof total loansand leases

Totalnon-performingassets notguaranteed as 0.69 % 0.73 % 0.76 % a percentageof totalassets

(1)

Accruing troubled debt restructured loans are not included in total non-performing loans and leases or in non-performing assets.

Variances in non-performing assets were:

* Non-performing loans and leases were $41.1 million at December 31, 2020, a decrease of $2.1 million from $43.2 million at September 30, 2020; and * Other real estate owned was $6.4 million at December 31, 2020, a decrease of $1.8 million from $8.2 million at September 30, 2020 mainly due to sales.

U.S. government guaranteed balances of non-performing loans were $3.6 million at December 31, 2020 and $3.7 million at September 30, 2020.

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:

(1) Accruing troubled debt restructured loans are not included in total non-performing loans and leases or in non-performing assets.

Variances in non-performing assets were:

* Non-performing loans and leases were $41.1 million at December 31, 2020, a decrease of $2.1 million from $43.2 million at September 30, 2020; and * Other real estate owned was $6.4 million at December 31, 2020, a decrease of $1.8 million from $8.2 million at September 30, 2020 mainly due to sales.

U.S. government guaranteed balances of non-performing loans were $3.6 million at December 31, 2020 and $3.7 million at September 30, 2020.

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

December September December 31, 30, 31,

(dollars in thousands) 2020 2020 2019

Allowance for loan and lease losses, $ 61,258 $ 51,300 $ 31,585 beginning of period

Provision for loan and lease losses 10,236 15,740 4,387

Net charge-offs of loans and leases (5,147 ) (5,782 ) (4,036 )

Allowance for loan and lease losses, $ 66,347 $ 61,258 $ 31,936 end of period



Allowance for loan and lease losses toperiod end 1.53 % 1.40 % 0.84 %total loans and leases held forinvestment

Net charge-offs (annualized) to averageloans 0.47 % 0.53 % 0.42 %and leases outstanding during theperiod

Provision for loan and lease losses tonet charge-offs 1.99 x 2.72 x 1.09 x

during the period

The allowance for loan and lease losses as a percentage of total loans and leases held for investment increased to 1.53% at December 31, 2020 compared to 1.40% at September 30, 2020. The allowance for loan and lease losses as a percentage of total loans and leases held for investment excluding PPP loans increased to 1.74% at December 31, 2020 from 1.63% at September 30, 2020.

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 we remain an emerging growth company, the standard is effective for fiscal years beginning after December 15, 2022. We are in the process of implementation and determining the impact that this new authoritative guidance will have on our consolidated financial statements.

Net Charge-Offs

Net charge-offs during the fourth quarter of 2020 were $5.1 million, or 0.47% of average loans and leases, on an annualized basis, a decrease of $635,000 compared to $5.8 million, or 0.53% of average loans and leases, during the third quarter of 2020.

Net charge-offs for the fourth quarter of 2020 included $5.0 million in the unguaranteed portion of U.S. government guaranteed loans, while net charge-offs for the third quarter of 2020 included $4.1 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:

December 31, 2020 Percentage Change from

December September December September December(dollars in thousands) 31, 30, 31, 30, 31, 2020 2020 2019 2020 2019

Non-interest-bearing $ 1,762,676 $ 1,718,682 $ 1,279,641 2.6 % 37.7 %demand deposits

Interest-bearing 494,424 584,682 338,185 (15.4 ) 46.2 %checking accounts %

Money market demand 1,142,709 1,153,433 881,387 (0.9 ) 29.6 %accounts %

Other savings 564,700 542,741 475,839 4.0 % 18.7 %

Time deposits (below 600,810 622,328 916,723 (3.5 ) (34.5 )$250,000) % %

Time deposits 186,712 188,379 255,802 (0.9 ) (27.0 )($250,000 and above) % %

Total deposits $ 4,752,031 $ 4,810,245 $ 4,147,577 (1.2 ) 14.6 % %

Total deposits were $4.8 billion at December 31, 2020, a decrease of $58.2 million, or 1.2%, compared to September 30, 2020. Non-interest-bearing deposits were 37.1% and 35.7% of total deposits at December 31, 2020 and September 30, 2020, respectively.

The decrease in the current quarter was primarily due to:

* A decrease in interest-bearing checking accounts of $90.3 million, mostly due to seasonal decreases in public funds; and * A decrease in time deposits of $23.2 million, principally driven by decreases in personal certificates;

Partially offset by:

* An increase in non-interest-bearing deposits of $44.0 million, mostly due to increases in business deposits.

Total borrowings and other liabilities were $833.2 million at December 31, 2020, a decrease of $58.4 million from $891.6 million at September 30, 2020, primarily driven by a $77.7 million decrease in the Paycheck Protection Program Liquidity Facility resulting from forgiveness of loans.

Stockholders' Equity

Total stockholders' equity was $805.5 million at December 31, 2020, an increase of $10.8 million from $794.7 million at September 30, 2020. The increase was primarily due to net income generated during the quarter less dividends declared.

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

Required to be Minimum Capital Actual Considered Required Well Capitalized

December Amount Ratio Amount Ratio Amount Ratio 31, 2020

Totalcapitalto risk weightedassets:

Company $ 774,522 16.18 % $ 383,069 8.00 % N/A N/A

Bank 675,977 14.16 % 381,775 8.00 % $ 477,219 10.00 %

Tier 1capitalto risk weightedassets:

Company $ 639,564 13.36 % $ 287,302 6.00 % N/A N/A

Bank 616,219 12.91 % 286,331 6.00 % $ 381,775 8.00 %

CommonEquityTier 1(CET1)to

riskweightedassets:

Company $ 584,126 12.20 % $ 215,476 4.50 % N/A N/A

Bank 616,219 12.91 % 214,748 4.50 % $ 310,192 6.50 %

Tier 1capitalto averageassets:

Company $ 639,564 11.12 % $ 230,056 4.00 % N/A N/A

Bank 616,219 10.72 % 229,870 4.00 % $ 287,337 5.00 %

Capital ratios for the period presented are based on the Basel III regulatory capital framework as applied to our current business and operations, and are subject to, among other things, completion and filing of our regulatory reports and ongoing regulatory review and implementation guidance.

On December 10, 2020, the Company announced that its Board of Directors approved a new stock repurchase program authorizing the purchase of up to an aggregate of 1,250,000 shares of the Company's outstanding common stock over a two year period ending December 31, 2022.

Conference Call, Webcast and Slide Presentation

We will host a conference call and webcast at 9:00 a.m. Central Time on Friday, January 29, 2021 to discuss our quarterly financial results. Analysts and investors may participate in the question-and-answer session. The call can be accessed via telephone at (877) 512-8755. A recorded replay can be accessed through February 12, 2021 by dialing (877) 344-7529; passcode: 10151039.

A slide presentation relating to the fourth 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 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 $6.4 billion in assets and operates more than 40 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, tax-equivalent net interest margin, 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 its Annual Report on Form 10-K for the year ended December 31, 2019, and its Quarterly Report on Form 10-Q for the quarters ended March 31, 2020 and June 30, 2020. 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)



December 31, September 30, June 30, March 31, December 31,

(dollars in 2020 2020 2020 2020 2019thousands)

ASSETS

Cash and due from $ 41,432 $ 47,433 $ 51,818 $ 45,233 $ 48,228 banks

Interest bearingdeposits with other 41,988 53,645 88,113 74,386 32,509 banks

Cash and cash 83,420 101,078 139,931 119,619 80,737 equivalents

Equity and othersecurities, at fair 8,764 8,335 8,181 7,413 8,031 value

Securitiesavailable-for-sale, 1,447,230 1,509,211 1,426,871 1,299,483 1,186,292 at fair value

Securitiesheld-to-maturity, at 4,395 4,400 4,404 4,408 4,412 amortized cost

Restricted stock, at 10,507 9,652 6,232 24,197 22,127 cost

Loans held for sale 7,924 49,049 3,031 13,299 11,732

Loans and leases:

Loans and leases 4,340,535 4,374,517 4,391,122 3,860,259 3,785,661

Allowance for loan (66,347 ) (61,258 ) (51,300 ) (41,840 ) (31,936 )and lease losses

Net loans and leases 4,274,188 4,313,259 4,339,822 3,818,419 3,753,725

Servicing assets, at 22,042 21,267 18,351 17,800 19,471 fair value

Premises and 86,728 94,638 95,546 96,446 96,140 equipment, net

Other real estate 6,350 8,150 8,652 9,273 9,896 owned, net

Goodwill and otherintangible assets, 172,631 174,523 176,470 178,362 180,255 net

Bank-owned life 10,009 9,952 9,896 9,898 9,750 insurance

Deferred tax assets, 40,181 35,945 37,082 33,845 38,315 net

Accrued interestreceivable and other 216,283 157,054 119,049 102,292 100,926 assets

Total assets $ 6,390,652 $ 6,496,513 $ 6,393,518 $ 5,734,754 $ 5,521,809

LIABILITIES AND STOCKHOLDERS' EQUITY

LIABILITIES

Non-interest-bearing $ 1,762,676 $ 1,718,682 $ 1,768,675 $ 1,290,896 $ 1,279,641 demand deposits

Interest-bearing 2,989,355 3,091,563 3,189,670 2,947,940 2,867,936 deposits

Total deposits 4,752,031 4,810,245 4,958,345 4,238,836 4,147,577

Other borrowings 647,901 710,560 510,414 640,647 539,638

Subordinated notes, 73,342 73,299 48,777 - - net

Junior subordinateddebentures issued to 36,451 36,331 36,206 37,462 37,334

capital trusts, net

Accrued expenses and 75,463 71,382 58,841 55,142 47,145 other liabilities

Total liabilities 5,585,188 5,701,817 5,612,583 4,972,087 4,771,694

STOCKHOLDERS' EQUITY

Preferred stock 10,438 10,438 10,438 10,438 10,438

Common stock 384 383 381 380 379

Additional paid-in 587,165 586,057 583,307 582,517 580,965 capital

Retained earnings 191,098 180,162 168,444 160,652 159,033

Treasury stock (1,668 ) (1,668 ) (1,668 ) (1,668 ) -

Accumulated othercomprehensive income 18,047 19,324 20,033 10,348 (700 )

(loss), net of tax

Total stockholders' 805,464 794,696 780,935 762,667 750,115 equity

Total liabilities and stockholders' $ 6,390,652 $ 6,496,513 $ 6,393,518 $ 5,734,754 $ 5,521,809 equity

BYLINE BANCORP, INC. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF OPERATIONS (unaudited)

Three Months Ended

Year Ended

(dollars in thousands, except per share data)

December 31,2020

September 30,2020

June 30,2020

March 31,2020

December 31,2019

December 31,2020

December 31,2019

INTEREST AND DIVIDEND INCOME

Interest and fees on loans and leases

$

53,441

$

51,036

$

50,153

$

54,158

$

58,203

$

208,788

$

235,501

Interest on securities

6,252

7,070

7,530

8,016

7,212

28,868

27,019

Other interest and dividend income

232

128

222

992

500

1,574

2,294

Total interest and dividend income

59,925

58,234

57,905

63,166

65,915

239,230

264,814

INTEREST EXPENSE

Deposits

1,814

2,760

4,246

7,804

9,325

16,624

36,325

Other borrowings

480

465

476

1,897

1,989

3,318

9,255

Subordinated notes and debentures

1,611

1,485

574

640

687

4,310

2,949

Total interest expense

3,905

4,710

5,296

10,341

12,001

24,252

48,529

Net interest income

56,020

53,524

52,609

52,825

53,914

214,978

216,285

PROVISION FOR LOAN AND LEASE LOSSES

10,236

15,740

15,518

14,455

4,387

55,949

20,708

Net interest income after provision

for loan and lease losses

45,784

37,784

37,091

38,370

49,527

159,029

195,577

NON-INTEREST INCOME

Fees and service charges on deposits

1,740

1,603

1,455

1,673

1,635

6,471

6,458

Loan servicing revenue

2,645

2,936

2,980

2,758

2,834

11,319

10,695

Loan servicing asset revaluation

(2,298

)

1,122

(711

)

(3,064

)

(2,545

)

(4,951

)

(6,639

)

ATM and interchange fees

1,076

1,028

845

1,216

1,150

4,165

3,785

Net gains on sales of securities

available-for-sale

2,889

1,037

-

1,375

-

5,301

1,151

Change in fair value of equity securities,

net

428

154

766

(619

)

381

729

1,416

Net gains on sales of loans

9,449

12,671

6,456

4,773

8,735

33,349

31,845

Wealth management and trust income

710

693

608

669

704

2,680

2,578

Other non-interest income

1,051

990

430

526

1,648

2,997

4,259

Total non-interest income

17,690

22,234

12,829

9,307

14,542

62,060

55,548

NON-INTEREST EXPENSE

Salaries and employee benefits

22,559

23,126

19,405

24,666

24,228

89,756

95,309

Occupancy and equipment expense, net

6,854

5,220

5,359

5,524

5,241

22,957

19,771

Loan and lease related expenses

1,324

2,053

1,260

1,318

2,648

5,955

8,015

Legal, audit, and other professional fees

1,336

2,390

2,078

2,334

2,340

8,138

11,453

Data processing

2,748

2,661

2,826

2,665

2,678

10,900

13,733

Net loss recognized on other real

estate owned and other related

expenses

495

349

456

519

122

1,819

665

Other intangible assets amortization

expense

1,892

1,947

1,892

1,893

2,002

7,624

7,737

Other non-interest expense

9,813

3,941

3,777

4,742

4,461

22,273

17,147

Total non-interest expense

47,021

41,687

37,053

43,661

43,720

169,422

173,830

INCOME BEFORE PROVISION FOR INCOME

TAXES

16,453

18,331

12,867

4,016

20,349

51,667

77,295

PROVISION FOR INCOME TAXES

4,162

5,260

3,728

1,050

4,497

14,200

20,293

NET INCOME

12,291

13,071

9,139

2,966

15,852

37,467

57,002

Dividends on preferred shares

196

196

195

196

196

783

783

INCOME AVAILABLE TO COMMON

STOCKHOLDERS

$

12,095

$

12,875

$

8,944

$

2,770

$

15,656

$

36,684

$

56,219

EARNINGS PER COMMON SHARE

Basic

$

0.32

$

0.34

$

0.24

$

0.07

$

0.41

$

0.96

$

1.51

Diluted

$

0.31

$

0.34

$

0.24

$

0.07

$

0.41

$

0.96

$

1.48

BYLINE BANCORP, INC. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF OPERATIONS (unaudited)



Three Months Ended Year Ended

(dollars in thousands, December September June 30, March December December Decemberexcept per share data) 31, 30, 2020 31, 31, 31, 31, 2020 2020 2020 2019 2020 2019

INTEREST AND DIVIDEND INCOME

Interest and fees on $ 53,441 $ 51,036 $ 50,153 $ 54,158 $ 58,203 $ 208,788 $ 235,501 loans and leases

Interest on securities 6,252 7,070 7,530 8,016 7,212 28,868 27,019

Other interest and 232 128 222 992 500 1,574 2,294 dividend income

Total interest and 59,925 58,234 57,905 63,166 65,915 239,230 264,814 dividend income

INTEREST EXPENSE

Deposits 1,814 2,760 4,246 7,804 9,325 16,624 36,325

Other borrowings 480 465 476 1,897 1,989 3,318 9,255

Subordinated notes and 1,611 1,485 574 640 687 4,310 2,949 debentures

Total interest expense 3,905 4,710 5,296 10,341 12,001 24,252 48,529

Net interest income 56,020 53,524 52,609 52,825 53,914 214,978 216,285

PROVISION FOR LOAN AND 10,236 15,740 15,518 14,455 4,387 55,949 20,708 LEASE LOSSES

Net interest income afterprovision 45,784 37,784 37,091 38,370 49,527 159,029 195,577

for loan and lease losses

NON-INTEREST INCOME

Fees and service charges 1,740 1,603 1,455 1,673 1,635 6,471 6,458 on deposits

Loan servicing revenue 2,645 2,936 2,980 2,758 2,834 11,319 10,695

Loan servicing asset (2,298 ) 1,122 (711 ) (3,064 ) (2,545 ) (4,951 ) (6,639 )revaluation

ATM and interchange fees 1,076 1,028 845 1,216 1,150 4,165 3,785

Net gains on sales ofsecurities 2,889 1,037 - 1,375 - 5,301 1,151

available-for-sale

Change in fair value ofequity securities, 428 154 766 (619 ) 381 729 1,416

net

Net gains on sales of 9,449 12,671 6,456 4,773 8,735 33,349 31,845 loans

Wealth management and 710 693 608 669 704 2,680 2,578 trust income

Other non-interest income 1,051 990 430 526 1,648 2,997 4,259

Total non-interest income 17,690 22,234 12,829 9,307 14,542 62,060 55,548

NON-INTEREST EXPENSE

Salaries and employee 22,559 23,126 19,405 24,666 24,228 89,756 95,309 benefits

Occupancy and equipment 6,854 5,220 5,359 5,524 5,241 22,957 19,771 expense, net

Loan and lease related 1,324 2,053 1,260 1,318 2,648 5,955 8,015 expenses

Legal, audit, and other 1,336 2,390 2,078 2,334 2,340 8,138 11,453 professional fees

Data processing 2,748 2,661 2,826 2,665 2,678 10,900 13,733

Net loss recognized onother real

estate owned and other 495 349 456 519 122 1,819 665 related

expenses

Other intangible assetsamortization 1,892 1,947 1,892 1,893 2,002 7,624 7,737

expense

Other non-interest 9,813 3,941 3,777 4,742 4,461 22,273 17,147 expense

Total non-interest 47,021 41,687 37,053 43,661 43,720 169,422 173,830 expense

INCOME BEFORE PROVISIONFOR INCOME 16,453 18,331 12,867 4,016 20,349 51,667 77,295

TAXES

PROVISION FOR INCOME 4,162 5,260 3,728 1,050 4,497 14,200 20,293 TAXES

NET INCOME 12,291 13,071 9,139 2,966 15,852 37,467 57,002

Dividends on preferred 196 196 195 196 196 783 783 shares

INCOME AVAILABLE TOCOMMON $ 12,095 $ 12,875 $ 8,944 $ 2,770 $ 15,656 $ 36,684 $ 56,219

STOCKHOLDERS

EARNINGS PER COMMON SHARE

Basic $ 0.32 $ 0.34 $ 0.24 $ 0.07 $ 0.41 $ 0.96 $ 1.51

Diluted $ 0.31 $ 0.34 $ 0.24 $ 0.07 $ 0.41 $ 0.96 $ 1.48

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 per share data)

December 31,2020

September 30,2020

June 30,2020

March 31,2020

December 31,2019

December 31,2020

December 31,2019

Common Share Data

Basic earnings per common share

$

0.32

$

0.34

$

0.24

$

0.07

$

0.41

$

0.96

$

1.51

Diluted earnings per common share

$

0.31

$

0.34

$

0.24

$

0.07

$

0.41

$

0.96

$

1.48

Adjusted diluted earnings per common share(2)(3)(4)

$

0.38

$

0.34

$

0.24

$

0.09

$

0.42

$

1.05

$

1.62

Weighted average common shares

outstanding (basic)

38,202,665

38,057,350

37,919,480

37,943,333

37,872,835

38,031,250

37,290,486

Weighted average common shares

outstanding (diluted)

38,574,129

38,249,335

38,027,289

38,663,658

38,537,899

38,312,608

37,986,463

Common shares outstanding

38,618,054

38,568,916

38,383,217

38,383,021

38,256,500

38,618,054

38,256,500

Cash dividends per common share

$

0.03

$

0.03

$

0.03

$

0.03

$

0.03

$

0.12

$

0.03

Dividend payout ratio on common stock

9.38

%

8.82

%

12.50

%

42.86

%

7.32

%

12.50

%

2.03

%

Tangible book value per common share(1)

$

16.12

$

15.81

$

15.47

$

14.95

$

14.62

$

16.12

$

14.62

Key Ratios and Performance Metrics

(annualized where applicable)

Net interest margin, fully taxable equivalent (1)(5)

3.78

%

3.61

%

3.72

%

4.18

%

4.33

%

3.81

%

4.48

%

Average cost of deposits

0.15

%

0.22

%

0.36

%

0.75

%

0.88

%

0.35

%

0.91

%

Efficiency ratio(2)

61.22

%

52.46

%

53.73

%

67.23

%

60.94

%

58.40

%

61.10

%

Adjusted efficiency ratio(1)(2)(3)

55.77

%

52.42

%

53.73

%

66.08

%

60.52

%

56.68

%

58.84

%

Non-interest expense to average assets

2.92

%

2.59

%

2.41

%

3.15

%

3.20

%

2.76

%

3.29

%

Adjusted non-interest expense to

average assets(1)(3)

2.67

%

2.59

%

2.41

%

3.10

%

3.18

%

2.68

%

3.16

%

Return on average stockholders' equity

6.07

%

6.57

%

4.74

%

1.56

%

8.43

%

4.78

%

8.05

%

Adjusted return on average stockholders' equity(1)(3)(4)

7.50

%

6.58

%

4.74

%

1.83

%

8.54

%

5.21

%

8.77

%

Return on average assets

0.76

%

0.81

%

0.59

%

0.21

%

1.16

%

0.61

%

1.05

%

Adjusted return on average assets(1)(3)(4)

0.94

%

0.81

%

0.59

%

0.25

%

1.17

%

0.67

%

1.18

%

Non-interest income to total revenues(1)

24.00

%

29.35

%

19.61

%

14.98

%

21.24

%

22.40

%

20.43

%

Pre-tax pre-provision return on average assets(1)

1.66

%

2.12

%

1.85

%

1.33

%

1.81

%

1.75

%

1.86

%

Adjusted pre-tax pre-provision return on average assets(1)(3)

1.91

%

2.12

%

1.85

%

1.39

%

1.83

%

1.83

%

1.99

%

Return on average tangible common

stockholders' equity(1)

8.61

%

9.39

%

7.05

%

2.89

%

12.20

%

7.06

%

11.80

%

Adjusted return on average tangible

common stockholders' equity(1)(3)

10.47

%

9.40

%

7.05

%

3.25

%

12.35

%

7.63

%

12.78

%

Non-interest-bearing deposits to total

deposits

37.09

%

35.73

%

35.67

%

30.45

%

30.85

%

37.09

%

30.85

%

Loans and leases held for sale and loans and lease held for investment to total deposits

91.51

%

91.96

%

88.62

%

91.38

%

91.56

%

91.51

%

91.56

%

Deposits to total liabilities

85.08

%

84.36

%

88.34

%

85.25

%

86.92

%

85.08

%

86.92

%

Deposits per branch

$

103,305

$

84,390

$

86,989

$

74,366

$

67,993

$

103,305

$

67,993

Asset Quality Ratios

Non-performing loans and leases to total loans and leases held for investment, net before ALLL

0.95

%

0.99

%

0.92

%

1.27

%

0.96

%

0.95

%

0.96

%

ALLL to total loans and leases held for investment, net before ALLL

1.53

%

1.40

%

1.17

%

1.08

%

0.84

%

1.53

%

0.84

%

Net charge-offs to average total loans and leases held for investment, net before ALLL

0.47

%

0.53

%

0.57

%

0.48

%

0.42

%

0.51

%

0.37

%

Acquisition accounting adjustments(4)

$

13,389

$

17,133

$

19,324

$

25,889

$

28,511

$

13,389

$

28,511

Capital Ratios

Common equity to total assets

12.44

%

12.07

%

12.05

%

13.12

%

13.40

%

12.44

%

13.40

%

Tangible common equity to tangible

assets(1)

10.01

%

9.64

%

9.55

%

10.33

%

10.47

%

10.01

%

10.47

%

Leverage ratio

11.12

%

10.93

%

10.29

%

11.18

%

11.39

%

11.12

%

11.39

%

Common equity tier 1 capital ratio

12.20

%

12.55

%

12.33

%

12.24

%

12.36

%

12.20

%

12.36

%

Tier 1 capital ratio

13.36

%

13.77

%

13.56

%

13.52

%

13.67

%

13.36

%

13.67

%

Total capital ratio

16.18

%

16.67

%

15.86

%

14.50

%

14.43

%

16.18

%

14.43

%

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 Septemberthousands, except December 31, 30, June 30, March 31, December 31, December 31, December 31, share and per share 2020 2020 2020 2020 2019 2020 2019data)

Common Share Data

Basic earnings per $ 0.32 $ 0.34 $ 0.24 $ 0.07 $ 0.41 $ 0.96 $ 1.51 common share

Diluted earnings per $ 0.31 $ 0.34 $ 0.24 $ 0.07 $ 0.41 $ 0.96 $ 1.48 common share

Adjusted dilutedearnings per common $ 0.38 $ 0.34 $ 0.24 $ 0.09 $ 0.42 $ 1.05 $ 1.62 share^(2)(3)(4)

Weighted averagecommon shares 38,202,665 38,057,350 37,919,480 37,943,333 37,872,835 38,031,250 37,290,486

outstanding (basic)

Weighted averagecommon shares 38,574,129 38,249,335 38,027,289 38,663,658 38,537,899 38,312,608 37,986,463 outstanding(diluted)

Common shares 38,618,054 38,568,916 38,383,217 38,383,021 38,256,500 38,618,054 38,256,500 outstanding

Cash dividends per $ 0.03 $ 0.03 $ 0.03 $ 0.03 $ 0.03 $ 0.12 $ 0.03 common share

Dividend payoutratio on common 9.38 % 8.82 % 12.50 % 42.86 % 7.32 % 12.50 % 2.03 %stock

Tangible book value $ 16.12 $ 15.81 $ 15.47 $ 14.95 $ 14.62 $ 16.12 $ 14.62 per common share^(1)



Key Ratios andPerformance Metrics (annualized whereapplicable)

Net interest margin,fully taxable 3.78 % 3.61 % 3.72 % 4.18 % 4.33 % 3.81 % 4.48 %equivalent ^(1)(5)

Average cost of 0.15 % 0.22 % 0.36 % 0.75 % 0.88 % 0.35 % 0.91 %deposits

Efficiency ratio^(2) 61.22 % 52.46 % 53.73 % 67.23 % 60.94 % 58.40 % 61.10 %

Adjusted efficiency 55.77 % 52.42 % 53.73 % 66.08 % 60.52 % 56.68 % 58.84 %ratio^(1)(2)(3)

Non-interest expense 2.92 % 2.59 % 2.41 % 3.15 % 3.20 % 2.76 % 3.29 %to average assets

Adjustednon-interest expenseto 2.67 % 2.59 % 2.41 % 3.10 % 3.18 % 2.68 % 3.16 %

average assets^(1)(3)

Return on average 6.07 % 6.57 % 4.74 % 1.56 % 8.43 % 4.78 % 8.05 %stockholders' equity

Adjusted return onaverage 7.50 % 6.58 % 4.74 % 1.83 % 8.54 % 5.21 % 8.77 %stockholders' equity^(1)(3)(4)

Return on average 0.76 % 0.81 % 0.59 % 0.21 % 1.16 % 0.61 % 1.05 %assets

Adjusted return onaverage assets^(1) 0.94 % 0.81 % 0.59 % 0.25 % 1.17 % 0.67 % 1.18 %(3)(4)

Non-interest incometo total revenues^ 24.00 % 29.35 % 19.61 % 14.98 % 21.24 % 22.40 % 20.43 %(1)

Pre-taxpre-provision return 1.66 % 2.12 % 1.85 % 1.33 % 1.81 % 1.75 % 1.86 %on average assets^(1)

Adjusted pre-taxpre-provision return 1.91 % 2.12 % 1.85 % 1.39 % 1.83 % 1.83 % 1.99 %on average assets^(1)(3)

Return on averagetangible common 8.61 % 9.39 % 7.05 % 2.89 % 12.20 % 7.06 % 11.80 %stockholders' equity^(1)

Adjusted return onaverage tangible 10.47 % 9.40 % 7.05 % 3.25 % 12.35 % 7.63 % 12.78 %common stockholders'equity^(1)(3)

Non-interest-bearingdeposits to total 37.09 % 35.73 % 35.67 % 30.45 % 30.85 % 37.09 % 30.85 %

deposits

Loans and leasesheld for sale andloans and lease held 91.51 % 91.96 % 88.62 % 91.38 % 91.56 % 91.51 % 91.56 %for investment tototal deposits

Deposits to total 85.08 % 84.36 % 88.34 % 85.25 % 86.92 % 85.08 % 86.92 %liabilities

Deposits per branch $ 103,305 $ 84,390 $ 86,989 $ 74,366 $ 67,993 $ 103,305 $ 67,993



Asset Quality Ratios

Non-performing loansand leases to totalloans and leases 0.95 % 0.99 % 0.92 % 1.27 % 0.96 % 0.95 % 0.96 %held for investment,net before ALLL

ALLL to total loansand leases held for 1.53 % 1.40 % 1.17 % 1.08 % 0.84 % 1.53 % 0.84 %investment, netbefore ALLL

Net charge-offs toaverage total loansand leases held for 0.47 % 0.53 % 0.57 % 0.48 % 0.42 % 0.51 % 0.37 %investment, netbefore ALLL

Acquisitionaccounting $ 13,389 $ 17,133 $ 19,324 $ 25,889 $ 28,511 $ 13,389 $ 28,511 adjustments^(4)



Capital Ratios

Common equity to 12.44 % 12.07 % 12.05 % 13.12 % 13.40 % 12.44 % 13.40 %total assets

Tangible commonequity to tangible 10.01 % 9.64 % 9.55 % 10.33 % 10.47 % 10.01 % 10.47 %

assets^(1)

Leverage ratio 11.12 % 10.93 % 10.29 % 11.18 % 11.39 % 11.12 % 11.39 %

Common equity tier 1 12.20 % 12.55 % 12.33 % 12.24 % 12.36 % 12.20 % 12.36 %capital ratio

Tier 1 capital ratio 13.36 % 13.77 % 13.56 % 13.52 % 13.67 % 13.36 % 13.67 %

Total capital ratio 16.18 % 16.67 % 15.86 % 14.50 % 14.43 % 16.18 % 14.43 %

(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.

(5)

Interest income and rates include the effects of a tax equivalent adjustment to adjust tax exempt investment income on tax exempt investment securities to a fully taxable basis, assuming a federal income tax rate of 21%.

Represents a non-GAAP financial measure. See "Reconciliation of non-GAAP(1) 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.

Represents the remaining net unaccreted discount as a result of applying(4) the fair value adjustment at the time of the business combination on acquired loans.

Interest income and rates include the effects of a tax equivalent(5) adjustment to adjust tax exempt investment income on tax exempt investment securities to a fully taxable basis, assuming a federal income tax rate of 21%.

BYLINE BANCORP, INC. AND SUBSIDIARIES

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

For the Three Months Ended December 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

$

39,500

$

21

0.22

%

$

38,624

$

220

2.25

%

Loans and leases(1)

4,340,388

53,441

4.90

%

3,807,731

58,203

6.06

%

Taxable securities

1,364,980

5,555

1.62

%

1,025,975

6,963

2.69

%

Tax-exempt securities(2)

168,878

1,148

2.71

%

84,640

669

3.14

%

Total interest-earning assets

$

5,913,746

$

60,165

4.05

%

$

4,956,970

$

66,055

5.29

%

Allowance for loan and lease losses

(63,891

)

(32,688

)

All other assets

550,766

502,764

TOTAL ASSETS

$

6,400,621

$

5,427,046

LIABILITIES AND STOCKHOLDERS'

EQUITY

Deposits

Interest checking

$

578,520

$

287

0.20

%

$

399,065

$

612

0.61

%

Money market accounts

1,152,012

444

0.15

%

790,565

1,945

0.98

%

Savings

554,633

66

0.05

%

474,394

63

0.05

%

Time deposits

802,409

1,017

0.50

%

1,231,641

6,705

2.16

%

Total interest-bearing

deposits

3,087,574

1,814

0.23

%

2,895,665

9,325

1.28

%

Other borrowings

577,309

480

0.33

%

414,515

1,989

1.90

%

Subordinated notes and debentures

109,704

1,611

5.84

%

37,254

687

7.32

%

Total borrowings

687,013

2,091

1.21

%

451,769

2,676

2.35

%

Total interest-bearing liabilities

$

3,774,587

$

3,905

0.41

%

$

3,347,434

$

12,001

1.42

%

Non-interest-bearing demand deposits

1,761,902

1,288,960

Other liabilities

58,539

44,907

Total stockholders' equity

805,593

745,745

TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY

$

6,400,621

$

5,427,046

Net interest spread(3)

3.64

%

3.87

%

Net interest income, fully taxable equivalent

$

56,260

$

54,054

Net interest margin, fully taxable equivalent(2)(4)

3.78

%

4.33

%

Tax-equivalent adjustment

(240

)

0.01

%

(140

)

0.01

%

Net interest income

$

56,020

$

53,914

Net interest margin(4)

3.77

%

4.32

%

Net loan accretion impact on margin

$

2,304

0.16

%

$

5,418

0.43

%

BYLINE BANCORP, INC. AND SUBSIDIARIES

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



For the Three Months Ended December 31,

2020 2019

Interest Average Interest Average Average Average(dollars in thousands) Inc / Yield / Inc / Yield / Balance^(5) Exp Balance^(5) Exp Rate Rate

ASSETS

Cash and cash equivalents $ 39,500 $ 21 0.22 % $ 38,624 $ 220 2.25 %

Loans and leases^(1) 4,340,388 53,441 4.90 % 3,807,731 58,203 6.06 %

Taxable securities 1,364,980 5,555 1.62 % 1,025,975 6,963 2.69 %

Tax-exempt securities^(2) 168,878 1,148 2.71 % 84,640 669 3.14 %

Total interest-earning $ 5,913,746 $ 60,165 4.05 % $ 4,956,970 $ 66,055 5.29 %assets

Allowance for loan and (63,891 ) (32,688 ) lease losses

All other assets 550,766 502,764

TOTAL ASSETS $ 6,400,621 $ 5,427,046

LIABILITIES ANDSTOCKHOLDERS'

EQUITY

Deposits

Interest checking $ 578,520 $ 287 0.20 % $ 399,065 $ 612 0.61 %

Money market accounts 1,152,012 444 0.15 % 790,565 1,945 0.98 %

Savings 554,633 66 0.05 % 474,394 63 0.05 %

Time deposits 802,409 1,017 0.50 % 1,231,641 6,705 2.16 %

Total interest-bearing 3,087,574 1,814 0.23 % 2,895,665 9,325 1.28 %deposits

Other borrowings 577,309 480 0.33 % 414,515 1,989 1.90 %

Subordinated notes and 109,704 1,611 5.84 % 37,254 687 7.32 %debentures

Total borrowings 687,013 2,091 1.21 % 451,769 2,676 2.35 %

Total interest-bearing $ 3,774,587 $ 3,905 0.41 % $ 3,347,434 $ 12,001 1.42 %liabilities

Non-interest-bearing 1,761,902 1,288,960 demand deposits

Other liabilities 58,539 44,907

Total stockholders' equity 805,593 745,745

TOTAL LIABILITIES AND $ 6,400,621 $ 5,427,046 STOCKHOLDERS' EQUITY

Net interest spread^(3) 3.64 % 3.87 %

Net interest income, fully $ 56,260 $ 54,054 taxable equivalent

Net interest margin, fully 3.78 % 4.33 %taxable equivalent^(2)(4)

Tax-equivalent adjustment (240 ) 0.01 % (140 ) 0.01 %

Net interest income $ 56,020 $ 53,914

Net interest margin^(4) 3.77 % 4.32 %



Net loan accretion impact $ 2,304 0.16 % $ 5,418 0.43 %on margin

(1)

Loan and lease balances are net of deferred origination fees and costs and initial indirect costs. Non-accrual loans and leases are included in total loan and lease balances.

(2)

Interest income and rates include the effects of a tax equivalent adjustment to adjust tax exempt investment income on tax exempt investment securities to a fully taxable basis, assuming a federal income tax rate of 21%.

(3)

Represents the average rate earned on interest-earning assets minus the average rate paid on interest-bearing liabilities.

(4)

Represents net interest income (annualized) divided by total average earning assets.

(5)

Average balances are average daily balances.

Loan and lease balances are net of deferred origination fees and costs and(1) initial indirect costs. Non-accrual loans and leases are included in total loan and lease balances.

Interest income and rates include the effects of a tax equivalent(2) adjustment to adjust tax exempt investment income on tax exempt investment securities to a fully taxable basis, assuming a federal income tax rate of 21%.

(3) Represents the average rate earned on interest-earning assets minus the average rate paid on interest-bearing liabilities.

(4) Represents net interest income (annualized) divided by total average earning assets.

(5) Average balances are average daily balances.

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,

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

$

46,508

$

228

0.49

%

$

43,636

$

1,018

2.33

%

Loans and leases(1)

4,196,708

208,788

4.98

%

3,741,607

235,501

6.29

%

Taxable securities

1,287,480

27,233

2.12

%

981,453

26,509

2.70

%

Tax-exempt securities(2)

128,664

3,773

2.93

%

71,173

2,260

3.18

%

Total interest-earning assets

$

5,659,360

$

240,022

4.24

%

$

4,837,869

$

265,288

5.48

%

Allowance for loan and lease losses

(48,688

)

(29,650

)

All other assets

529,471

468,823

TOTAL ASSETS

$

6,140,143

$

5,277,042

LIABILITIES AND STOCKHOLDERS'

EQUITY

Deposits

Interest checking

$

469,418

$

938

0.20

%

$

346,329

$

2,002

0.58

%

Money market accounts

1,132,978

4,238

0.37

%

709,379

7,111

1.00

%

Savings

520,472

252

0.05

%

474,709

434

0.09

%

Time deposits

940,165

11,196

1.19

%

1,244,070

26,778

2.15

%

Total interest-bearing deposits

3,063,033

16,624

0.54

%

2,774,487

36,325

1.31

%

Other borrowings

542,937

3,318

0.61

%

477,144

9,255

1.94

%

Subordinated notes and debentures

72,188

4,310

5.97

%

37,037

2,949

7.96

%

Total borrowings

615,125

7,628

1.24

%

514,181

12,204

2.37

%

Total interest-bearing liabilities

$

3,678,158

$

24,252

0.66

%

$

3,288,668

$

48,529

1.48

%

Non-interest-bearing demand deposits

1,624,754

1,238,410

Other liabilities

52,653

41,764

Total stockholders' equity

784,578

708,200

TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY

$

6,140,143

$

5,277,042

Net interest spread(3)

3.58

%

4.00

%

Net interest income, fully taxable equivalent

$

215,770

$

216,759

Net interest margin, fully taxable equivalent(2)(4)

3.81

%

4.48

%

Tax-equivalent adjustment

(792

)

0.01

%

(474

)

0.01

%

Net interest income

$

214,978

$

216,285

Net interest margin(4)

3.80

%

4.47

%

Net loan accretion impact on margin

$

13,058

0.23

%

$

23,190

0.48

%

BYLINE BANCORP, INC. AND SUBSIDIARIES

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



For the Year Ended December 31,

2020 2019

Average Average Average Interest Average Interest(dollars in thousands) Yield / Yield / Balance^(5) Inc / Exp Balance^(5) Inc / Exp Rate Rate

ASSETS

Cash and cash equivalents $ 46,508 $ 228 0.49 % $ 43,636 $ 1,018 2.33 %

Loans and leases^(1) 4,196,708 208,788 4.98 % 3,741,607 235,501 6.29 %

Taxable securities 1,287,480 27,233 2.12 % 981,453 26,509 2.70 %

Tax-exempt securities^(2) 128,664 3,773 2.93 % 71,173 2,260 3.18 %

Total interest-earning assets $ 5,659,360 $ 240,022 4.24 % $ 4,837,869 $ 265,288 5.48 %

Allowance for loan and lease (48,688 ) (29,650 ) losses

All other assets 529,471 468,823

TOTAL ASSETS $ 6,140,143 $ 5,277,042

LIABILITIES AND STOCKHOLDERS' EQUITY

Deposits

Interest checking $ 469,418 $ 938 0.20 % $ 346,329 $ 2,002 0.58 %

Money market accounts 1,132,978 4,238 0.37 % 709,379 7,111 1.00 %

Savings 520,472 252 0.05 % 474,709 434 0.09 %

Time deposits 940,165 11,196 1.19 % 1,244,070 26,778 2.15 %

Total interest-bearing 3,063,033 16,624 0.54 % 2,774,487 36,325 1.31 %deposits

Other borrowings 542,937 3,318 0.61 % 477,144 9,255 1.94 %

Subordinated notes and 72,188 4,310 5.97 % 37,037 2,949 7.96 %debentures

Total borrowings 615,125 7,628 1.24 % 514,181 12,204 2.37 %

Total interest-bearing $ 3,678,158 $ 24,252 0.66 % $ 3,288,668 $ 48,529 1.48 %liabilities

Non-interest-bearing demand 1,624,754 1,238,410 deposits

Other liabilities 52,653 41,764

Total stockholders' equity 784,578 708,200

TOTAL LIABILITIES AND $ 6,140,143 $ 5,277,042 STOCKHOLDERS' EQUITY

Net interest spread^(3) 3.58 % 4.00 %

Net interest income, fully $ 215,770 $ 216,759 taxable equivalent

Net interest margin, fully 3.81 % 4.48 %taxable equivalent^(2)(4)

Tax-equivalent adjustment (792 ) 0.01 % (474 ) 0.01 %

Net interest income $ 214,978 $ 216,285

Net interest margin^(4) 3.80 % 4.47 %



Net loan accretion impact on $ 13,058 0.23 % $ 23,190 0.48 %margin

(1)

Loan and lease balances are net of deferred origination fees and costs and initial indirect costs. Non-accrual loans and leases are included in total loan and lease balances.

(2)

Interest income and rates include the effects of a tax equivalent adjustment to adjust tax exempt investment income on tax exempt investment securities to a fully taxable basis, assuming a federal income tax rate of 21%.

(3)

Represents the average rate earned on interest-earning assets minus the average rate paid on interest-bearing liabilities.

(4)

Represents net interest income (annualized) divided by total average earning assets.

(5)

Average balances are average daily balances.

Loan and lease balances are net of deferred origination fees and costs and(1) initial indirect costs. Non-accrual loans and leases are included in total loan and lease balances.

Interest income and rates include the effects of a tax equivalent(2) adjustment to adjust tax exempt investment income on tax exempt investment securities to a fully taxable basis, assuming a federal income tax rate of 21%.

(3) Represents the average rate earned on interest-earning assets minus the average rate paid on interest-bearing liabilities.

(4) Represents net interest income (annualized) divided by total average earning assets.

(5) Average balances are average daily balances.

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,

2020

September 30,

2020

June 30,

2020

March 31,

2020

December 31,

2019

December 31,

2020

December 31,

2019

Net income and earnings per share

excluding significant items

Reported Net Income

$

12,291

$

13,071

$

9,139

$

2,966

$

15,852

$

37,467

$

57,002

Significant items:

Impairment charges on assets held for sale

4,022

32

-

715

111

4,769

570

Merger-related expense

-

-

-

-

127

-

4,340

Core system conversion expense

-

-

-

-

48

-

2,049

Tax benefit on impairment charges and

merger-related expenses

(1,120

)

(9

)

-

(199

)

(79

)

(1,328

)

(1,830

)

Adjusted Net Income

$

15,193

$

13,094

$

9,139

$

3,482

$

16,059

$

40,908

$

62,131

Reported Diluted Earnings per Share

$

0.31

$

0.34

$

0.24

$

0.07

$

0.41

$

0.96

$

1.48

Significant items:

Impairment charges on assets held for sale

0.10

-

-

0.02

-

0.12

0.01

Merger-related expense

-

-

-

-

0.01

-

0.12

Core system conversion expense

-

-

-

-

-

-

0.05

Tax benefit on impairment charges and

merger-related expenses

(0.03

)

-

-

-

-

(0.03

)

(0.04

)

Adjusted Diluted Earnings per Share

$

0.38

$

0.34

$

0.24

$

0.09

$

0.42

$

1.05

$

1.62

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 December September June March December December Decemberthousands, 31, 30, 30, 31, 31, 31, 31, except pershare data) 2020 2020 2020 2020 2019 2020 2019

Net income andearnings pershare excludingsignificantitems

Reported Net $ 12,291 $ 13,071 $ 9,139 $ 2,966 $ 15,852 $ 37,467 $ 57,002 Income

Significant items:

Impairmentcharges on 4,022 32 - 715 111 4,769 570 assets heldfor sale

Merger-related - - - - 127 - 4,340 expense

Core systemconversion - - - - 48 - 2,049 expense

Tax benefit onimpairmentcharges and (1,120 ) (9 ) - (199 ) (79 ) (1,328 ) (1,830 )

merger-relatedexpenses

Adjusted Net $ 15,193 $ 13,094 $ 9,139 $ 3,482 $ 16,059 $ 40,908 $ 62,131 Income

ReportedDiluted $ 0.31 $ 0.34 $ 0.24 $ 0.07 $ 0.41 $ 0.96 $ 1.48 Earnings perShare

Significant items:

Impairmentcharges on 0.10 - - 0.02 - 0.12 0.01 assets heldfor sale

Merger-related - - - - 0.01 - 0.12 expense

Core systemconversion - - - - - - 0.05 expense

Tax benefit onimpairmentcharges and (0.03 ) - - - - (0.03 ) (0.04 )

merger-relatedexpenses

Adjusted Diluted $ 0.38 $ 0.34 $ 0.24 $ 0.09 $ 0.42 $ 1.05 $ 1.62Earnings per Share

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,

2020

September 30,

2020

June 30,

2020

March 31,

2020

December 31,

2019

December 31,

2020

December 31,

2019

Adjusted non-interest expense:

Non-interest expense

$

47,021

$

41,687

$

37,053

$

43,661

$

43,720

$

169,422

$

173,830

Less: Significant items

Impairment charges on assets held for sale

4,022

32

-

715

111

4,769

570

Merger-related expense

-

-

-

-

127

-

4,340

Core system conversion expense

-

-

-

-

48

-

2,049

Adjusted non-interest expense

$

42,999

$

41,655

$

37,053

$

42,946

$

43,434

$

164,653

$

166,871

Adjusted non-interest expense excluding amortization of intangible assets:

Adjusted non-interest expense

$

42,999

$

41,655

$

37,053

$

42,946

$

43,434

$

164,653

$

166,871

Less: Amortization of intangible assets

1,892

1,947

1,892

1,893

2,002

7,624

7,737

Adjusted non-interest expense excluding

amortization of intangible assets

$

41,107

$

39,708

$

35,161

$

41,053

$

41,432

$

157,029

$

159,134

Pre-tax pre-provision net income:

Pre-tax income

$

16,453

$

18,331

$

12,867

$

4,016

$

20,349

$

51,667

$

77,295

Add: Provision for loan and lease losses

10,236

15,740

15,518

14,455

4,387

55,949

20,708

Pre-tax pre-provision net income

$

26,689

$

34,071

$

28,385

$

18,471

$

24,736

$

107,616

$

98,003

Adjusted pre-tax pre-provision net income:

Pre-tax pre-provision net income

$

26,689

$

34,071

$

28,385

$

18,471

$

24,736

$

107,616

$

98,003

Impairment charges on assets held for sale

4,022

32

-

715

111

4,769

570

Merger-related expense

-

-

-

-

127

-

4,340

Core system conversion expense

-

-

-

-

48

-

2,049

Adjusted pre-tax pre-provision net income

$

30,711

$

34,103

$

28,385

$

19,186

$

25,022

$

112,385

$

104,962

Tax Equivalent Net Interest Income

Net interest income

$

56,020

$

53,524

$

52,609

$

52,825

$

53,914

$

214,978

$

216,285

Add: Tax-equivalent adjustment

240

222

188

142

140

792

474

Net interest income, fully taxable equivalent

$

56,260

$

53,746

$

52,797

$

52,967

$

54,054

$

215,770

$

216,759

Total revenues:

Net interest income

$

56,020

$

53,524

$

52,609

$

52,825

$

53,914

$

214,978

$

216,285

Add: Non-interest income

17,690

22,234

12,829

9,307

14,542

62,060

55,548

Total revenues

$

73,710

$

75,758

$

65,438

$

62,132

$

68,456

$

277,038

$

271,833

Tangible common stockholders' equity:

Total stockholders' equity

$

805,464

$

794,696

$

780,935

$

762,667

$

750,115

$

805,464

$

750,115

Less: Preferred stock

10,438

10,438

10,438

10,438

10,438

10,438

10,438

Less: Goodwill and other intangibles

172,631

174,523

176,470

178,362

180,255

172,631

180,255

Tangible common stockholders' equity

$

622,395

$

609,735

$

594,027

$

573,867

$

559,422

$

622,395

$

559,422

Tangible assets:

Total assets

$

6,390,652

$

6,496,513

$

6,393,518

$

5,734,754

$

5,521,809

$

6,390,652

$

5,521,809

Less: Goodwill and other intangibles

172,631

174,523

176,470

178,362

180,255

172,631

180,255

Tangible assets

$

6,218,021

$

6,321,990

$

6,217,048

$

5,556,392

$

5,341,554

$

6,218,021

$

5,341,554

Average tangible common stockholders' equity:

Average total stockholders' equity

$

805,593

$

791,111

$

775,879

$

765,427

$

745,745

$

784,578

$

708,200

Less: Average preferred stock

10,438

10,438

10,438

10,438

10,438

10,438

10,438

Less: Average goodwill and other

intangibles

173,536

175,443

177,440

179,416

179,192

176,448

174,091

Average tangible common stockholders' equity

$

621,619

$

605,230

$

588,001

$

575,573

$

556,115

$

597,692

$

523,671

Average tangible assets:

Average total assets

$

6,400,621

$

6,401,290

$

6,186,974

$

5,565,952

$

5,427,046

$

6,140,143

$

5,277,042

Less: Average goodwill and other

intangibles

173,536

175,443

177,440

179,416

179,192

176,448

174,091

Average tangible assets

$

6,227,085

$

6,225,847

$

6,009,534

$

5,386,536

$

5,247,854

$

5,963,695

$

5,102,951

Tangible net income available to common

stockholders:

Net income available to common stockholders

$

12,095

$

12,875

$

8,944

$

2,770

$

15,656

$

36,684

$

56,219

Add: After-tax intangible asset amortization

1,365

1,405

1,365

1,366

1,444

5,501

5,582

Tangible net income available to common

stockholders

$

13,460

$

14,280

$

10,309

$

4,136

$

17,100

$

42,185

$

61,801

Adjusted tangible net income available to common stockholders:

Tangible net income available to common

stockholders

$

13,460

$

14,280

$

10,309

$

4,136

$

17,100

$

42,185

$

61,801

Impairment charges on assets held for sale

4,022

32

-

715

111

4,769

570

Merger-related expense

-

-

-

-

127

-

4,340

Core system conversion expense

-

-

-

-

48

-

2,049

Tax benefit on significant items

(1,120

)

(9

)

-

(199

)

(79

)

(1,328

)

(1,830

)

Adjusted tangible net income available to

common stockholders

$

16,362

$

14,303

$

10,309

$

4,652

$

17,307

$

45,626

$

66,930

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 inthousands,except per December September December December Decembershare data, 31, 30, June 30, March 31, 31, 31, 31, ratios 2020 2020 2020 2020 2019 2020 2019annualized,whereapplicable)

Adjustednon-interest expense:

Non-interest $ 47,021 $ 41,687 $ 37,053 $ 43,661 $ 43,720 $ 169,422 $ 173,830 expense

Less:Significant items

Impairmentcharges on 4,022 32 - 715 111 4,769 570 assets heldfor sale

Merger-related - - - - 127 - 4,340 expense

Core systemconversion - - - - 48 - 2,049 expense

Adjustednon-interest $ 42,999 $ 41,655 $ 37,053 $ 42,946 $ 43,434 $ 164,653 $ 166,871 expense

Adjustednon-interestexpenseexcluding amortizationof intangibleassets:

Adjustednon-interest $ 42,999 $ 41,655 $ 37,053 $ 42,946 $ 43,434 $ 164,653 $ 166,871 expense

Less:Amortization 1,892 1,947 1,892 1,893 2,002 7,624 7,737 of intangibleassets

Adjustednon-interestexpenseexcluding $ 41,107 $ 39,708 $ 35,161 $ 41,053 $ 41,432 $ 157,029 $ 159,134

amortizationof intangibleassets

Pre-taxpre-provision net income:

Pre-tax income $ 16,453 $ 18,331 $ 12,867 $ 4,016 $ 20,349 $ 51,667 $ 77,295

Add: Provisionfor loan and 10,236 15,740 15,518 14,455 4,387 55,949 20,708 lease losses

Pre-taxpre-provision $ 26,689 $ 34,071 $ 28,385 $ 18,471 $ 24,736 $ 107,616 $ 98,003 net income

Adjustedpre-tax pre-provisionnet income:

Pre-taxpre-provision $ 26,689 $ 34,071 $ 28,385 $ 18,471 $ 24,736 $ 107,616 $ 98,003 net income

Impairmentcharges on 4,022 32 - 715 111 4,769 570 assets heldfor sale

Merger-related - - - - 127 - 4,340 expense

Core systemconversion - - - - 48 - 2,049 expense

Adjustedpre-tax $ 30,711 $ 34,103 $ 28,385 $ 19,186 $ 25,022 $ 112,385 $ 104,962 pre-provisionnet income

Tax EquivalentNet Interest Income

Net interest $ 56,020 $ 53,524 $ 52,609 $ 52,825 $ 53,914 $ 214,978 $ 216,285 income

Add:Tax-equivalent 240 222 188 142 140 792 474 adjustment

Net interestincome, fully $ 56,260 $ 53,746 $ 52,797 $ 52,967 $ 54,054 $ 215,770 $ 216,759 taxableequivalent

Total revenues:

Net interest $ 56,020 $ 53,524 $ 52,609 $ 52,825 $ 53,914 $ 214,978 $ 216,285 income

Add:Non-interest 17,690 22,234 12,829 9,307 14,542 62,060 55,548 income

Total revenues $ 73,710 $ 75,758 $ 65,438 $ 62,132 $ 68,456 $ 277,038 $ 271,833

Tangiblecommon stockholders'equity:

Totalstockholders' $ 805,464 $ 794,696 $ 780,935 $ 762,667 $ 750,115 $ 805,464 $ 750,115 equity

Less:Preferred 10,438 10,438 10,438 10,438 10,438 10,438 10,438 stock

Less: Goodwilland other 172,631 174,523 176,470 178,362 180,255 172,631 180,255 intangibles

Tangiblecommon $ 622,395 $ 609,735 $ 594,027 $ 573,867 $ 559,422 $ 622,395 $ 559,422 stockholders'equity

Tangible assets:

Total assets $ 6,390,652 $ 6,496,513 $ 6,393,518 $ 5,734,754 $ 5,521,809 $ 6,390,652 $ 5,521,809

Less: Goodwilland other 172,631 174,523 176,470 178,362 180,255 172,631 180,255 intangibles

Tangible $ 6,218,021 $ 6,321,990 $ 6,217,048 $ 5,556,392 $ 5,341,554 $ 6,218,021 $ 5,341,554 assets

Averagetangiblecommon stockholders'equity:

Average totalstockholders' $ 805,593 $ 791,111 $ 775,879 $ 765,427 $ 745,745 $ 784,578 $ 708,200 equity

Less: Averagepreferred 10,438 10,438 10,438 10,438 10,438 10,438 10,438 stock

Less: Averagegoodwill andother 173,536 175,443 177,440 179,416 179,192 176,448 174,091

intangibles

Averagetangiblecommon $ 621,619 $ 605,230 $ 588,001 $ 575,573 $ 556,115 $ 597,692 $ 523,671 stockholders'equity

Averagetangible assets:

Average total $ 6,400,621 $ 6,401,290 $ 6,186,974 $ 5,565,952 $ 5,427,046 $ 6,140,143 $ 5,277,042 assets

Less: Averagegoodwill andother 173,536 175,443 177,440 179,416 179,192 176,448 174,091

intangibles

Averagetangible $ 6,227,085 $ 6,225,847 $ 6,009,534 $ 5,386,536 $ 5,247,854 $ 5,963,695 $ 5,102,951 assets

Tangible netincomeavailable to common

stockholders:

Net incomeavailable to $ 12,095 $ 12,875 $ 8,944 $ 2,770 $ 15,656 $ 36,684 $ 56,219 commonstockholders

Add: After-taxintangible 1,365 1,405 1,365 1,366 1,444 5,501 5,582 assetamortization

Tangible netincomeavailable to $ 13,460 $ 14,280 $ 10,309 $ 4,136 $ 17,100 $ 42,185 $ 61,801 common

stockholders

Adjustedtangible netincome available tocommonstockholders:

Tangible netincomeavailable to $ 13,460 $ 14,280 $ 10,309 $ 4,136 $ 17,100 $ 42,185 $ 61,801 common

stockholders

Impairmentcharges on 4,022 32 - 715 111 4,769 570 assets heldfor sale

Merger-related - - - - 127 - 4,340 expense

Core systemconversion - - - - 48 - 2,049 expense

Tax benefit onsignificant (1,120 ) (9 ) - (199 ) (79 ) (1,328 ) (1,830 )items

Adjustedtangible netincomeavailable to $ 16,362 $ 14,303 $ 10,309 $ 4,652 $ 17,307 $ 45,626 $ 66,930

commonstockholders

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,

2020

September 30,

2020

June 30,

2020

March 31,

2020

December 31,

2019

December 31,

2020

December 31,

2019

Pre-tax pre-provision return on average assets:

Pre-tax pre-provision net income

$

26,689

$

34,071

$

28,385

$

18,471

$

24,736

$

107,616

$

98,003

Average total assets

6,400,621

6,401,290

6,186,974

5,565,952

5,427,046

6,140,143

5,277,042

Pre-tax pre-provision return on average assets

1.66

%

2.12

%

1.85

%

1.33

%

1.81

%

1.75

%

1.86

%

Adjusted pre-tax pre-provision return on average

assets:

Adjusted pre-tax pre-provision net income

$

30,711

$

34,103

$

28,385

$

19,186

$

25,022

$

112,385

$

104,962

Average total assets

6,400,621

6,401,290

6,186,974

5,565,952

5,427,046

6,140,143

5,277,042

Adjusted pre-tax pre-provision return on average assets

1.91

%

2.12

%

1.85

%

1.39

%

1.83

%

1.83

%

1.99

%

Net interest margin, fully taxable equivalent

Net interest income, fully taxable equivalent

$

56,260

$

53,746

$

52,797

$

52,967

$

54,054

$

215,770

$

216,759

Total average interest-earning assets

5,913,746

5,916,554

5,703,569

5,097,946

4,956,970

5,659,360

4,837,869

Net interest margin, fully taxable equivalent

3.78

%

3.61

%

3.72

%

4.18

%

4.33

%

3.81

%

4.48

%

Non-interest income to total revenues:

Non-interest income

$

17,690

$

22,234

$

12,829

$

9,307

$

14,542

$

62,060

$

55,548

Total revenues

73,710

75,758

65,438

62,132

68,456

277,038

271,833

Non-interest income to total revenues

24.00

%

29.35

%

19.61

%

14.98

%

21.24

%

22.40

%

20.43

%

Adjusted non-interest expense to average assets:

Adjusted non-interest expense

$

42,999

$

41,655

$

37,053

$

42,946

$

43,434

$

164,653

$

166,871

Average total assets

6,400,621

6,401,290

6,186,974

5,565,952

5,427,046

6,140,143

5,277,042

Adjusted non-interest expense to average assets

2.67

%

2.59

%

2.41

%

3.10

%

3.18

%

2.68

%

3.16

%

Adjusted efficiency ratio:

Adjusted non-interest expense excluding

amortization of intangible assets

$

41,107

$

39,708

$

35,161

$

41,053

$

41,432

$

157,029

$

159,134

Total revenues

73,710

75,758

65,438

62,132

68,456

277,038

271,833

Adjusted efficiency ratio

55.77

%

52.42

%

53.73

%

66.08

%

60.52

%

56.68

%

58.84

%

Adjusted return on average assets:

Adjusted net income

$

15,193

$

13,094

$

9,139

$

3,482

$

16,059

$

40,908

$

62,131

Average total assets

6,400,621

6,401,290

6,186,974

5,565,952

5,427,046

6,140,143

5,277,042

Adjusted return on average assets

0.94

%

0.81

%

0.59

%

0.25

%

1.17

%

0.67

%

1.18

%

Adjusted return on average stockholders' equity:

Adjusted net income

$

15,193

$

13,094

$

9,139

$

3,482

$

16,059

$

40,908

$

62,131

Average stockholders' equity

805,593

791,111

775,879

765,427

745,745

784,578

708,200

Adjusted return on average stockholders' equity

7.50

%

6.58

%

4.74

%

1.83

%

8.54

%

5.21

%

8.77

%

Tangible common equity to tangible assets:

Tangible common equity

$

622,395

$

609,735

$

594,027

$

573,867

$

559,422

$

622,395

$

559,422

Tangible assets

6,218,021

6,321,990

6,217,048

5,556,392

5,341,554

6,218,021

5,341,554

Tangible common equity to tangible assets

10.01

%

9.64

%

9.55

%

10.33

%

10.47

%

10.01

%

10.47

%

Return on average tangible common stockholders' equity:

Tangible net income available to common

stockholders

$

13,460

$

14,280

$

10,309

$

4,136

$

17,100

$

42,185

$

61,801

Average tangible common stockholders' equity

621,619

605,230

588,001

575,573

556,115

597,692

523,671

Return on average tangible common

stockholders' equity

8.61

%

9.39

%

7.05

%

2.89

%

12.20

%

7.06

%

11.80

%

Adjusted return on average tangible common

stockholders' equity:

Adjusted tangible net income available to common stockholders

$

16,362

$

14,303

$

10,309

$

4,652

$

17,307

$

45,626

$

66,930

Average tangible common stockholders' equity

621,619

605,230

588,001

575,573

556,115

597,692

523,671

Adjusted return on average tangible common

stockholders' equity

10.47

%

9.40

%

7.05

%

3.25

%

12.35

%

7.63

%

12.78

%

Tangible book value per share:

Tangible common equity

$

622,395

$

609,735

$

594,027

$

573,867

$

559,422

$

622,395

$

559,422

Common shares outstanding

38,618,054

38,568,916

38,383,217

38,383,021

38,256,500

38,618,054

38,256,500

Tangible book value per share

$

16.12

$

15.81

$

15.47

$

14.95

$

14.62

$

16.12

$

14.62

View source version on businesswire.com: https://www.businesswire.com/news/home/20210128006117/en/

CONTACT: Investors: Tony Rossi Financial Profiles, Inc. 310-622-8221 BYIR@bylinebank.com

CONTACT: Media: Erin O'Neill Director of Marketing Byline Bank 773-475-2901 eoneill@bylinebank.com