Business Wire | Jul 29, 2021 04:16PM EDT

Byline Bancorp, Inc. Reports Second Quarter 2021 Financial Results

Jul. 29, 2021

CHICAGO--(BUSINESS WIRE)--Jul. 29, 2021--Byline Bancorp, Inc. ("Byline", the "Company", "we", "our", or "us")(NYSE: BY), the parent company of Byline Bank (the "Bank"), today reported net income of $28.5 million, or $0.73 per diluted share, for the second quarter of 2021, compared with net income of $21.8 million, or $0.56 per diluted share, for the first quarter of 2021 and net income of $9.1 million, or $0.24 per diluted share for the second quarter 2020. Adjusted net income1 was $29.9 million, or $0.77 per adjusted diluted share, for the second quarter of 2021, compared with $22.2 million, or $0.57 per adjusted diluted share1, for the first quarter of 2021 and $9.1 million, or $0.24 per adjusted diluted share for the second quarter of 2020.

Roberto R. Herencia, Executive Chairman and Chief Executive Officer of Byline Bancorp, commented, "Our second quarter results were indicative of the improving economic environment and continued execution of our strategic plan to generate a higher level of profitability. With the strong returns we are generating, we have increased the amount of capital we are returning to shareholders by increasing our quarterly cash dividend and expanding our current stock repurchase program. We have now increased our quarterly cash dividend by 200% since it was first initiated at the end of 2019. As we head into the second half of 2021, we remain well positioned to support our continued organic and acquisitive growth in the future. I want to thank our employees for their continued dedication to help our clients, communities, and shareholders."

Alberto J. Paracchini, President of Byline Bancorp, added, "We believe increasing economic activity is driving strong inflows of commercial deposits, a higher level of loan growth, and improved asset quality. Excluding PPP loans, our total loans increased at a 16.3% annualized growth rate in the second quarter with balanced contributions coming from nearly all areas of lending. We also continue to see strong demand for government-guaranteed loans, which resulted in another quarter of significant gain on loan sale income. We continue to have a healthy loan pipeline, which is benefiting from the contributions of new banking talent we have added over the past couple of years, which should lead to continued growth and a favorable shift in our mix of earning assets going forward."

Represents non-GAAP financial measures. See "Reconciliation of non-GAAP(1) Financial Measures" for a reconciliation of our non-GAAP measures to the most directly comparable GAAP financial measure.

Board Declares Cash Dividend of $0.09 per Share

On July 27, 2021, the Company's Board of Directors declared a cash dividend of $0.09 per share, payable on August 24, 2021, to stockholders of record of the Company's common stock as of August 10, 2021.

Board Authorizes Expansion of Share Repurchase Program

On July 27, 2021, the Company's Board of Directors authorized an expansion of its current stock repurchase program. Under the extended program, the Company is authorized to repurchase up to an additional 1,250,000 shares of the Company's outstanding common stock and will be in effect until December 31, 2022. The extended stock repurchase program does not require the Company to repurchase any specified number of shares of its common stock, and it may be discontinued, suspended, or restarted at any time at the Company's discretion.

As of June 30, 2021, the Company has approximately 39.1 million shares of common stock issued and 38.1 million shares of common stock outstanding. The additional shares authorized for repurchase under the extended program represent approximately 3.2% of the Company's issued shares and 3.3% of the Company's outstanding shares of common stock. In connection with the previously announced stock repurchase program, the Company has repurchased 989,974 shares of common stock through June 30, 2021.

STATEMENTS OF OPERATIONS

Net Interest Income

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

June 30, 2021

Three Months Ended Change from

June 30, March 31, June 30, March 31, June 30,

(dollars in 2021 2021 2020 2021 2020thousands)

INTEREST AND DIVIDEND INCOME

Interest andfees on loans $ 54,324 $ 53,808 $ 50,153 1.0 % 8.3 %and leases

Interest on 6,359 6,089 7,530 4.4 % (15.6 )securities %

Other interestand dividend 628 262 222 140.3 % 183.0 %income

Total interestand dividend 61,311 60,159 57,905 1.9 % 5.9 %income

INTEREST EXPENSE

Deposits 1,058 1,421 4,246 (25.6 ) (75.1 ) % %

Other borrowings 482 502 476 (4.2 ) 1.2 % %

Subordinatednotes and 1,597 1,596 574 0.1 % 178.1 %debentures

Total interest 3,137 3,519 5,296 (10.9 ) (40.8 )expense % %

Net interest $ 58,174 $ 56,640 $ 52,609 2.7 % 10.6 %income

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

For the Three Months Ended

June 30, 2021 March 31, 2021

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

ASSETS

Cash and cash $ 75,382 $ 28 0.15 % $ 55,477 $ 28 0.21 %equivalents

Loans and leases^(1) 4,491,197 54,324 4.85 % 4,432,246 53,808 4.92 %

Taxable securities 1,477,070 5,947 1.62 % 1,430,625 5,379 1.52 %

Tax-exempt 187,967 1,281 2.73 % 179,364 1,194 2.70 %securities^(2)

Totalinterest-earning $ 6,231,616 $ 61,580 3.96 % $ 6,097,712 $ 60,409 4.02 %assets

Allowance for loan (65,848 ) (66,989 ) and lease losses

All other assets 554,724 557,042

TOTAL ASSETS $ 6,720,492 $ 6,587,765

LIABILITIES AND STOCKHOLDERS' EQUITY

Deposits

Interest checking $ 626,886 $ 220 0.14 % $ 546,730 $ 199 0.15 %

Money market 1,052,223 279 0.11 % 1,124,101 381 0.14 %accounts

Savings 607,035 72 0.05 % 577,504 67 0.05 %

Time deposits 717,795 487 0.27 % 777,266 774 0.40 %

Totalinterest-bearing 3,003,939 1,058 0.14 % 3,025,601 1,421 0.19 %deposits

Other borrowings 642,586 482 0.30 % 649,639 502 0.31 %

Subordinated notes 110,030 1,597 5.82 % 109,859 1,596 5.89 %and debentures

Total borrowings 752,616 2,079 1.11 % 759,498 2,098 1.12 %

Totalinterest-bearing $ 3,756,555 $ 3,137 0.33 % $ 3,785,099 $ 3,519 0.38 %liabilities

Non-interest-bearing 2,085,358 1,924,178 demand deposits

Other liabilities 68,089 72,036

Total stockholders' 810,490 806,452 equity

TOTAL LIABILITIESAND STOCKHOLDERS' $ 6,720,492 $ 6,587,765 EQUITY

Net interest spread^ 3.63 % 3.64 %(3)

Net interest income,fully taxable $ 58,443 $ 56,890 equivalent

Net interest margin,fully taxable 3.76 % 3.78 %equivalent^(2)(4)

Tax-equivalent (269 ) 0.02 % (250 ) 0.01 %adjustment

Net interest income $ 58,174 $ 56,640

Net interest margin^ 3.74 % 3.77 %(4)



Net loan accretion $ 1,395 0.09 % $ 1,968 0.13 %impact 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 second quarter of 2021 was $58.2 million, an increase of $1.5 million, or 2.7%, from the first quarter of 2021.

The increase in net interest income was primarily due to:

* An increase of $516,000 in interest income on loans and leases, due to higher lease income and loan fees; * An increase of $270,000 in interest income on securities, due to higher yields; and * A decrease of $363,000 in interest expense on deposits, due to favorable changes in deposit mix.

Tax-equivalent net interest margin for the second quarter of 2021 was 3.76%, down two basis points compared to the first quarter of 2021. Total net accretion income on acquired loans contributed nine basis points to the net interest margin for the second quarter of 2021 compared to 13 basis points for the first quarter of 2021, a decrease of four basis points. Paycheck Protection Program ("PPP") interest income and net fee income combined contributed $4.5 million to net interest income for the second quarter of 2021 compared to $7.0 million for the first quarter of 2021 due to the timing of forgiveness of loans and the passing of the application deadline for the second round of PPP on May 4, 2021.

The average cost of total deposits was 0.08% for the second quarter of 2021, a decrease of four basis points compared to the first quarter of 2021, mainly due to a lower average cost of time deposits and money market accounts. Average non-interest-bearing demand deposits increased $161.2 million, while average time deposits decreased by $59.5 million. Average non-interest-bearing demand deposits were 41.0% of average total deposits for the second quarter of 2021 compared to 38.9% the first quarter of 2021, mainly due to increases in commercial non-interest bearing deposits.

Provision for Loan and Lease Losses

The provision for loan and lease losses was a release of $2.0 million for the second quarter of 2021, a decrease of $6.3 million compared to a $4.4 million provision for the first quarter of 2021. The release of provision during the second quarter of 2021 was mainly impacted by an improvement in the outlook related to COVID-19.

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 second quarter of 2021 was $58.2 million, an increase of $1.5 million, or 2.7%, from the first quarter of 2021.

The increase in net interest income was primarily due to:

* An increase of $516,000 in interest income on loans and leases, due to higher lease income and loan fees; * An increase of $270,000 in interest income on securities, due to higher yields; and * A decrease of $363,000 in interest expense on deposits, due to favorable changes in deposit mix.

Tax-equivalent net interest margin for the second quarter of 2021 was 3.76%, down two basis points compared to the first quarter of 2021. Total net accretion income on acquired loans contributed nine basis points to the net interest margin for the second quarter of 2021 compared to 13 basis points for the first quarter of 2021, a decrease of four basis points. Paycheck Protection Program ("PPP") interest income and net fee income combined contributed $4.5 million to net interest income for the second quarter of 2021 compared to $7.0 million for the first quarter of 2021 due to the timing of forgiveness of loans and the passing of the application deadline for the second round of PPP on May 4, 2021.

The average cost of total deposits was 0.08% for the second quarter of 2021, a decrease of four basis points compared to the first quarter of 2021, mainly due to a lower average cost of time deposits and money market accounts. Average non-interest-bearing demand deposits increased $161.2 million, while average time deposits decreased by $59.5 million. Average non-interest-bearing demand deposits were 41.0% of average total deposits for the second quarter of 2021 compared to 38.9% the first quarter of 2021, mainly due to increases in commercial non-interest bearing deposits.

Provision for Loan and Lease Losses

The provision for loan and lease losses was a release of $2.0 million for the second quarter of 2021, a decrease of $6.3 million compared to a $4.4 million provision for the first quarter of 2021. The release of provision during the second quarter of 2021 was mainly impacted by an improvement in the outlook related to COVID-19.

Non-interest Income

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

Three Months Ended Change from

June 30, March 31, June 30, March June 30, 31,

(dollars in 2021 2021 2020 2021 2020thousands)

NON-INTEREST INCOME

Fees and servicecharges on $ 1,768 $ 1,664 $ 1,455 6.2 % 21.5 %deposits

Loan servicing 3,188 2,769 2,980 15.2 % 7.0 %revenue

Loan servicing 7 (1,505 ) (711 ) NM NM asset revaluation

ATM and 1,044 1,012 845 3.1 % 23.6 %interchange fees

Net gains (losses)on sales of (136 ) 1,462 - NM NM securitiesavailable-for-sale

Change in fair )value of equity 517 (206 ) 766 NM (32.5 %securities, net

Net gains on sales 12,270 8,319 6,456 47.5 % 90.1 %of loans

Wealth management 722 768 608 (5.9 ) 19.0 %and trust income %

Other non-interest 1,622 1,459 430 11.1 % 275.3 %income

Total non-interest $ 21,002 $ 15,742 $ 12,829 33.4 % 63.7 %income

Non-interest income for the second quarter of 2021 was $21.0 million, an increase of $5.3 million, or 33.4%, compared to $15.7 million for the first quarter of 2021.

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

* An increase of $4.0 million in net gains on sales of loans, mainly due to higher volume of loans sold and premiums received; and * A decrease of $1.5 million for loan servicing asset revaluation charges, which was a $7,000 upward valuation for the current quarter compared to a charge of $1.5 million in the prior quarter due to favorable fair value adjustments based on decreased discount rates and lower prepayment speeds.

During the second quarter of 2021, we sold $100.6 million of U.S. government guaranteed loans compared to $73.9 million during the first quarter of 2021.

Non-interest Expense

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

Three Months Ended Change from

June 30, March 31, June 30, March 31, June 30,

(dollars in 2021 2021 2020 2021 2020thousands)

NON-INTEREST EXPENSE

Salaries andemployee $ 24,588 $ 21,806 $ 19,405 12.8 % 26.7 %benefits

Occupancy and ) )equipment 4,856 5,779 5,359 (16.0 % (9.4 %expense, net

Loan and lease 1,503 951 1,260 57.9 % 19.2 %related expenses

Legal, audit andother 2,898 2,214 2,078 30.9 % 39.4 %professionalfees

Data processing 2,847 2,755 2,826 3.4 % 0.7 %

Net lossrecognized onother real 389 621 456 (37.4 ) (14.7 )estate owned and % %other relatedexpenses

Other intangibleassets 1,848 1,749 1,892 5.6 % (2.4 )amortization %expense

Othernon-interest 4,052 2,967 3,777 36.6 % 7.4 %expense

Totalnon-interest $ 42,981 $ 38,842 $ 37,053 10.7 % 16.0 %expense

Non-interest expense for the second quarter of 2021 was $43.0 million, an increase of $4.1 million, or 10.7%, from $38.8 million for the first quarter of 2021.

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

* An increase of $2.8 million in salaries and employee benefits, primarily due to higher deferred costs related to the second round of PPP loans during the first quarter of 2021; and * An increase of $1.1 million in other non-interest expense, mainly due to impairment charges on assets held for sale.

Partially offset by:

* A decrease of $923,000 in occupancy and equipment expense, net, mainly due to lower seasonal maintenance expense.

Our efficiency ratio was 51.95% for the second quarter of 2021 compared to 51.25% for the first quarter of 2021. Excluding impairment charges on assets held for sale, our adjusted efficiency ratio1 was 49.50% for the second quarter of 2021, compared with 50.41% for the first quarter of 2021.

INCOME TAXES

We recorded income tax expense of $9.7 million during the second quarter of 2021, compared to $7.4 million during the first quarter of 2021. The effective tax rate for both periods was 25.3%.

STATEMENTS OF FINANCIAL CONDITION

Total assets were $6.5 billion at June 30, 2021, a decrease of $209.5 million compared to $6.8 billion at March 31, 2021.

The current quarter decrease was primarily due to:

* A decrease in securities of $178.1 million, as a result of sales of mortgage-backed securities and maturities and calls during the quarter; and * A decrease in other assets of $18.3 million mainly due to the timing of settlement of government guaranteed loans and securities sold during the prior quarter.

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

June 30, 2021 March 31, 2021 June 30, 2020

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

Originatedloans and leases

Commercial $ 1,156,824 25.9 % $ 1,064,151 23.9 % $ 919,510 20.9 %real estate

Residential 389,758 8.7 % 399,958 9.0 % 480,692 10.9 %real estate

Construction,landdevelopment, 271,710 6.1 % 238,122 5.3 % 219,261 5.0 %and otherland

Commercialand 1,350,471 30.2 % 1,285,759 28.9 % 1,200,996 27.4 %industrial

Paycheckprotection 476,282 10.7 % 617,006 13.8 % 611,664 13.9 %program

Installment 982 0.0 % 1,094 0.0 % 2,714 0.1 %and other

Leasingfinancing 267,300 6.0 % 243,399 5.5 % 160,741 3.7 %receivables

Totaloriginated $ 3,913,327 87.6 % $ 3,849,489 86.4 % $ 3,595,578 81.9 %loans andleases

Acquiredimpaired loans

Commercial $ 91,313 2.0 % $ 96,059 2.2 % $ 126,405 2.9 %real estate

Residential 67,401 1.5 % 74,283 1.7 % 90,784 2.1 %real estate

Construction,landdevelopment, 2,008 0.0 % 1,992 0.0 % 4,784 0.1 %and otherland

Commercialand 7,444 0.2 % 8,842 0.2 % 13,485 0.3 %industrial

Installment 180 0.0 % 191 0.0 % 226 0.0 %and other

Totalacquired $ 168,346 3.7 % $ 181,367 4.1 % $ 235,684 5.4 %impairedloans

Acquirednon-impaired loans andleases

Commercial $ 254,739 5.6 % $ 271,458 6.0 % $ 305,041 6.9 %real estate

Residential 65,119 1.5 % 71,038 1.6 % 99,288 2.2 %real estate

Construction,landdevelopment, 208 0.0 % 210 0.0 % 21,958 0.5 %and otherland

Commercialand 58,320 1.3 % 69,795 1.6 % 116,668 2.7 %industrial

Installment 311 0.0 % 331 0.0 % 818 0.0 %and other

Leasingfinancing 9,087 0.3 % 10,932 0.3 % 16,087 0.4 %receivables

Totalacquirednon-impaired $ 387,784 8.7 % $ 423,764 9.5 % $ 559,860 12.7 %loans andleases

Total loans $ 4,469,457 100.0 % $ 4,454,620 100.0 % $ 4,391,122 100.0 %and leases

Allowance forloan and (61,719 ) (65,590 ) (51,300 ) lease losses

Total loansand leases,net of $ 4,407,738 $ 4,389,030 $ 4,339,822 allowance forloan andlease losses

Loan and Lease Deferrals

In support of customers impacted by COVID-19 and keeping with regulatory guidance, we began offering relief through payment deferrals during the first quarter of 2020. The following table shows active deferrals by category at the dates indicated:

Active Deferrals

As of June 30, 2021 As of December 31, 2020 Change from December 31, 2020

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

Commercial 2 $ 2,167 0.05 % 21 $ 22,905 0.60 % (19 ) $ (20,738 )Banking

Consumer - - - 2 703 0.02 % (2 ) (703 )Loans

Leasing 3 118 - 30 1,528 0.04 % (27 ) (1,410 )

GovernmentGuaranteed 7 1,436 0.04 % 262 75,444 1.97 % (255 ) (74,008 )Lending

Total 12 $ 3,721 0.09 % 315 $ 100,580 2.63 % (303 ) $ (96,859 )

(2) Excludes PPP loans

Paycheck Protection Program

The following table presents the net PPP loans outstanding as of June 30, 2021:

PPP Loan Size



(dollars in thousands) First Round Second Round Total

Principal outstanding $ 150,646 $ 337,523 $ 488,169

Unearned processing fee (2,162 ) (13,785 ) (15,947 )

Deferred cost 552 3,508 4,060

PPP loans, net $ 149,036 $ 327,246 $ 476,282

Number of loans 914 2,552 3,466

PPP loans decreased by $140.7 million in the second quarter of 2021 primarily as a result of forgiveness of PPP loans originated during the first round of PPP funding. As of June 30, 2021, approximately 75.1% of first round PPP loans have been forgiven, 10.2% of first round PPP loans are in the forgiveness review or submission process, and approximately 14.7% first round PPP loans have not applied for forgiveness.

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:

Change from

(dollars in June 30, March 31, June 30, March 31, June 30,thousands) 2021 2021 2020 2021 2020

Non-performing assets:

Non-accrual $ 35,514 $ 37,084 $ 40,505 (4.2 ) (12.3 )loans and leases % %

Past due loansand leases 90days or more and - - - - % - %still accruinginterest

Total ) )non-performing $ 35,514 $ 37,084 $ 40,505 (4.2 % (12.3 %loans and leases

Other real 4,417 5,952 8,652 (25.8 ) (48.9 )estate owned % %

Total ) )non-performing $ 39,931 $ 43,036 $ 49,157 (7.2 % (18.8 %assets

Accruingtroubled debt $ 2,395 $ 2,719 $ 3,151 (11.9 ) (24.0 )restructured % %loans ^(1)

Totalnon-performingloans and leases 0.79 % 0.83 % 0.92 % as a percentageof total loansand leases

Totalnon-performingassets as a 0.61 % 0.64 % 0.77 % percentage oftotal assets

Allowance forloan and leaselosses as a 173.79 % 176.87 % 126.65 % percentage ofnon-performingloans and leases



Non-performingassets guaranteed byU.S. government:

Non-accrual $ 5,847 $ 3,388 $ 3,755 72.6 % 55.7 %loans guaranteed

Past due loans90 days or moreand still - - - - % - %accruinginterestguaranteed

Totalnon-performing $ 5,847 $ 3,388 $ 3,755 72.6 % 55.7 %loans guaranteed

Accruingtroubled debtrestructured $ - $ - $ - - % - %loans guaranteed^(1)

Totalnon-performingloans and leasesnot guaranteed 0.66 % 0.76 % 0.84 % as a percentageof total loansand leases

Totalnon-performingassets not 0.52 % 0.59 % 0.71 % guaranteed as apercentage oftotal assets

Variances in non-performing assets were:

* Non-performing loans and leases were $35.5 million at June 30, 2021, a decrease of $1.6 million from $37.1 million at March 31, 2021; and * Other real estate owned was $4.4 million at June 30, 2021, a decrease of $1.5 million from $5.9 million at March 31, 2021 mainly due to sales.

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

June 30, March 31, June 30,

(dollars in thousands) 2021 2021 2020

Allowance for loan and lease losses, $ 65,590 $ 66,347 $ 41,840 beginning of period

Provision for (release of) loan and (1,969 ) 4,367 15,518 lease losses

Net charge-offs of loans and leases (1,902 ) (5,124 ) (6,058 )

Allowance for loan and lease losses, end $ 61,719 $ 65,590 $ 51,300 of period



Allowance for loan and lease losses toperiod end total loans and leases held 1.38 % 1.47 % 1.17 %for investment

Net charge-offs (annualized) to averageloans and leases outstanding during the 0.17 % 0.47 % 0.57 %period

Provision for (release of) loan andlease losses to net charge-offs during (1.04)x 0.85 x 2.56 xthe period

The allowance for loan and lease losses as a percentage of total loans and leases held for investment decreased to 1.38% at June 30, 2021 compared to 1.47% at March 31, 2021. The allowance for loan and lease losses as a percentage of total loans and leases held for investment excluding PPP loans decreased to 1.55% at June 30, 2021 from 1.71% at March 31, 2021.

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 second quarter of 2021 were $1.9 million, or 0.17% of average loans and leases, on an annualized basis, a decrease of $3.2 million compared to $5.1 million or 0.47% of average loans and leases, during the first quarter of 2021, and a decrease of $4.2 million from $6.1 million or 0.57% of average loans and leases from the comparable period a year ago.

Net charge-offs for the second quarter of 2021 included $1.6 million in the unguaranteed portion of U.S. government guaranteed loans, while net charge-offs for the first quarter of 2021 and second quarter of 2020 included $3.3 million and $2.0 million in the unguaranteed portion of U.S. government guaranteed loans, respectively.

Deposits and Other Liabilities

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

Change from

(dollars in June 30, 2021 March 31, June 30, 2020 March 31, June 30,thousands) 2021 2021 2020

Non-interest-bearing $ 2,089,455 $ 2,015,643 $ 1,768,675 3.7 % 18.1 %demand deposits

Interest-bearing 653,558 567,660 503,909 15.1 % 29.7 %checking accounts

Money market demand 1,023,675 1,075,330 1,233,748 (4.8 ) (17.0 )accounts % %

Other savings 613,136 600,725 525,043 2.1 % 16.8 %

Time deposits (below 567,469 579,682 710,429 (2.1 ) (20.1 )$250,000) % %

Time deposits 144,902 185,500 216,541 (21.9 ) (33.1 )($250,000 and above) % %

Total deposits $ 5,092,195 $ 5,024,540 $ 4,958,345 1.3 % 2.7 %

Total deposits were $5.1 billion at June 30, 2021, an increase of $67.7 million, or 1.3%, compared to $5.0 billion at March 31, 2021. Non-interest-bearing deposits were 41.0% and 40.1% of total deposits at June 30, 2021 and March 31, 2021, respectively.

The increase in the current quarter was primarily due to:

* An increase in non-interest-bearing deposits of $73.8 million, due to increases in commercial deposits; and * An increase in interest-bearing checking accounts of $85.9 million, mostly due to increases in personal accounts.

Partially offset by:

* A decrease in money market demand accounts of $51.7 million, principally driven by decreases in public funds and in money market deposits; and * A decrease in time deposits ($250,000 and above) of $40.6 million, primarily consisting of brokered deposits.

Total borrowings and other liabilities were $631.3 million at June 30, 2021, a decrease of $300.5 million from $931.8 million at March 31, 2021, primarily driven by a decrease in Federal Home Loan Bank advances of $217.0 million. The Paycheck Protection Program Liquidity Facility decreased $82.9 million to $304.7 million at June 30, 2021 from $387.6 million at March 31, 2021.

Stockholders' Equity

Total stockholders' equity was $817.1 million at June 30, 2021, an increase of $23.3 million from $793.8 million at March 31, 2021. The increase was primarily due to an increase in retained earnings and an increase in the fair value of available-for-sale securities, offset by repurchases of common stock.

Under its stock repurchase program announced in the fourth quarter of 2020, the Company repurchased an aggregate of 538,744 shares at an average price per share of $22.45 during the second quarter, and 871,488 shares at an average price of $21.18 year-to-date.

The following table presents the actual regulatory capital dollar amounts and ratios of the Company and Byline Bank as of June 30, 2021:

Required to be Minimum Capital Actual Considered Required Well Capitalized

June 30, Amount Ratio Amount Ratio Amount Ratio2021

Totalcapitalto risk weightedassets:

Company $ 808,088 15.74 % $ 410,628 8.00 % N/A N/A

Bank 727,418 14.22 % 409,099 8.00 % $ 511,374 10.00 %

Tier 1capitalto risk weightedassets:

Company $ 669,765 13.05 % $ 307,971 6.00 % N/A N/A

Bank $ 664,095 12.99 % 306,824 6.00 % $ 409,099 8.00 %

CommonEquityTier 1(CET1) to riskweightedassets:

Company $ 614,327 11.97 % $ 230,978 4.50 % N/A N/A

Bank 664,095 12.99 % 230,118 4.50 % $ 332,393 6.50 %

Tier 1capitalto averageassets:

Company $ 669,765 10.82 % $ 247,646 4.00 % N/A N/A

Bank 664,095 10.73 % 247,596 4.00 % $ 309,495 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.

Conference Call, Webcast and Slide Presentation

We will host a conference call and webcast at 9:00 a.m. Central Time on Friday, July 30, 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 August 13, 2021 by dialing (877) 344-7529; passcode: 10158447.

A slide presentation relating to our second quarter 2021 results will be accessible prior to the conference call. The slide presentation and webcast of the conference call can be accessed on our investor relations website at www.bylinebancorp.com.

About Byline Bancorp, Inc.

Headquartered in Chicago, Byline Bancorp, Inc. is the parent company for Byline Bank, a full service commercial bank serving small- and medium-sized businesses, financial sponsors, and consumers. Byline Bank has approximately $6.5 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.

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. Deterioration in general business and economic conditions, including 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, and 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 our Annual Report on Form 10-K and other reports we file with the Securities and Exchange Commission, including among other things under the heading "Risk Factors" in our Annual Report on Form 10-K for the year ended December 31, 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)

(dollars in June 30, March 31, December 31, September 30, June 30,thousands) 2021 2021 2020 2020 2020

ASSETS

Cash and due from $ 50,558 $ 47,101 $ 41,432 $ 47,433 $ 51,818 banks

Interest bearingdeposits with other 52,138 66,038 41,988 53,645 88,113 banks

Cash and cash 102,696 113,139 83,420 101,078 139,931 equivalents

Equity and othersecurities, at fair 10,575 8,557 8,764 8,335 8,181 value

Securitiesavailable-for-sale, 1,495,789 1,675,907 1,447,230 1,509,211 1,426,871 at fair value

Securitiesheld-to-maturity, at 3,890 3,892 4,395 4,400 4,404 amortized cost

Restricted stock, at 11,927 19,057 10,507 9,652 6,232 cost

Loans held for sale 25,046 28,584 7,924 49,049 3,031

Loans and leases:

Loans and leases 4,469,457 4,454,620 4,340,535 4,374,517 4,391,122

Allowance for loan (61,719 ) (65,590 ) (66,347 ) (61,258 ) (51,300 )and lease losses

Net loans and leases 4,407,738 4,389,030 4,274,188 4,313,259 4,339,822

Servicing assets, at 24,683 22,140 22,042 21,267 18,351 fair value

Premises and 80,482 85,182 86,728 94,638 95,546 equipment, net

Other real estate 4,417 5,952 6,350 8,150 8,652 owned, net

Goodwill and otherintangible assets, 169,034 170,882 172,631 174,523 176,470 net

Bank-owned life 60,628 60,258 10,009 9,952 9,896 insurance

Deferred tax assets, 43,127 48,662 40,181 35,945 37,082 net

Accrued interestreceivable and other 100,570 118,883 216,283 157,054 119,049 assets

Total assets $ 6,540,602 $ 6,750,125 $ 6,390,652 $ 6,496,513 $ 6,393,518

LIABILITIES AND STOCKHOLDERS' EQUITY

LIABILITIES

Non-interest-bearing $ 2,089,455 $ 2,015,643 $ 1,762,676 $ 1,718,682 $ 1,768,675 demand deposits

Interest-bearing 3,002,740 3,008,897 2,989,355 3,091,563 3,189,670 deposits

Total deposits 5,092,195 5,024,540 4,752,031 4,810,245 4,958,345

Other borrowings 446,836 749,719 647,901 710,560 510,414

Subordinated notes, 73,429 73,386 73,342 73,299 48,777 net

Junior subordinateddebentures issued to 36,682 36,565 36,451 36,331 36,206 capital trusts, net

Accrued expenses and 74,387 72,120 75,463 71,382 58,841 other liabilities

Total liabilities 5,723,529 5,956,330 5,585,188 5,701,817 5,612,583

STOCKHOLDERS' EQUITY

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

Common stock 385 385 384 383 381

Additional paid-in 590,422 589,209 587,165 586,057 583,307 capital

Retained earnings 236,363 210,385 191,098 180,162 168,444

Treasury stock (20,712 ) (8,275 ) (1,668 ) (1,668 ) (1,668 )

Accumulated othercomprehensive income 177 (8,347 ) 18,047 19,324 20,033 (loss), net of tax

Total stockholders' 817,073 793,795 805,464 794,696 780,935 equity

Total liabilitiesand stockholders' $ 6,540,602 $ 6,750,125 $ 6,390,652 $ 6,496,513 $ 6,393,518 equity

BYLINE BANCORP, INC. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF OPERATIONS (unaudited)

Three Months Ended

Six Months Ended

(dollars in thousands, except per share data)

June 30,

March 31,

December 31,

September 30,

June 30,

June 30,

June 30,

2021

2021

2020

2020

2020

2021

2020

INTEREST AND DIVIDEND INCOME

Interest and fees on loans and leases

$

54,324

$

53,808

$

53,441

$

51,036

$

50,153

$

108,132

$

104,311

Interest on securities

6,359

6,089

6,252

7,070

7,530

12,448

15,546

Other interest and dividend income

628

262

232

128

222

890

1,214

Total interest and dividend income

61,311

60,159

59,925

58,234

57,905

121,470

121,071

INTEREST EXPENSE

Deposits

1,058

1,421

1,814

2,760

4,246

2,479

12,050

Other borrowings

482

502

480

465

476

984

2,373

Subordinated notes and debentures

1,597

1,596

1,611

1,485

574

3,193

1,214

Total interest expense

3,137

3,519

3,905

4,710

5,296

6,656

15,637

Net interest income

58,174

56,640

56,020

53,524

52,609

114,814

105,434

PROVISION FOR (RELEASE OF) LOAN AND LEASE LOSSES

(1,969

)

4,367

10,236

15,740

15,518

2,398

29,973

Net interest income after provision for (release of) loan and lease losses

60,143

52,273

45,784

37,784

37,091

112,416

75,461

NON-INTEREST INCOME

Fees and service charges on deposits

1,768

1,664

1,740

1,603

1,455

3,432

3,128

Loan servicing revenue

3,188

2,769

2,645

2,936

2,980

5,957

5,738

Loan servicing asset revaluation

7

(1,505

)

(2,298

)

1,122

(711

)

(1,498

)

(3,775

)

ATM and interchange fees

1,044

1,012

1,076

1,028

845

2,056

2,061

Net gains (losses) on sales of securities available-for-sale

(136

)

1,462

2,889

1,037

-

1,326

1,375

Change in fair value of equity securities, net

517

(206

)

428

154

766

311

147

Net gains on sales of loans

12,270

8,319

9,449

12,671

6,456

20,589

11,229

Wealth management and trust income

722

768

710

693

608

1,490

1,277

Other non-interest income

1,622

1,459

1,051

990

430

3,081

956

Total non-interest income

21,002

15,742

17,690

22,234

12,829

36,744

22,136

NON-INTEREST EXPENSE

Salaries and employee benefits

24,588

21,806

22,559

23,126

19,405

46,394

44,071

Occupancy and equipment expense, net

4,856

5,779

6,854

5,220

5,359

10,635

10,883

Loan and lease related expenses

1,503

951

1,324

2,053

1,260

2,454

2,578

Legal, audit, and other professional fees

2,898

2,214

1,336

2,390

2,078

5,112

4,412

Data processing

2,847

2,755

2,748

2,661

2,826

5,602

5,491

Net loss recognized on other real estate owned and other related expenses

389

621

495

349

456

1,010

975

Other intangible assets amortization expense

1,848

1,749

1,892

1,947

1,892

3,597

3,785

Other non-interest expense

4,052

2,967

9,813

3,941

3,777

7,019

8,519

Total non-interest expense

42,981

38,842

47,021

41,687

37,053

81,823

80,714

INCOME BEFORE PROVISION FOR INCOME TAXES

38,164

29,173

16,453

18,331

12,867

67,337

16,883

PROVISION FOR INCOME TAXES

9,672

7,375

4,162

5,260

3,728

17,047

4,778

NET INCOME

28,492

21,798

12,291

13,071

9,139

50,290

12,105

Dividends on preferred shares

195

196

196

196

195

391

391

INCOME AVAILABLE TO COMMON STOCKHOLDERS

$

28,297

$

21,602

$

12,095

$

12,875

$

8,944

$

49,899

$

11,714

EARNINGS PER COMMON SHARE

Basic

$

0.75

$

0.57

$

0.32

$

0.34

$

0.24

$

1.31

$

0.31

Diluted

$

0.73

$

0.56

$

0.31

$

0.34

$

0.24

$

1.29

$

0.31

BYLINE BANCORP, INC. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF OPERATIONS (unaudited)

Three Months Ended Six Months Ended

(dollars in June 30, March 31, December September June 30, June 30, June 30,thousands, except 31, 30,per share data) 2021 2021 2020 2020 2020 2021 2020

INTEREST AND DIVIDEND INCOME

Interest and feeson loans and $ 54,324 $ 53,808 $ 53,441 $ 51,036 $ 50,153 $ 108,132 $ 104,311 leases

Interest on 6,359 6,089 6,252 7,070 7,530 12,448 15,546 securities

Other interest and 628 262 232 128 222 890 1,214 dividend income

Total interest and 61,311 60,159 59,925 58,234 57,905 121,470 121,071 dividend income

INTEREST EXPENSE

Deposits 1,058 1,421 1,814 2,760 4,246 2,479 12,050

Other borrowings 482 502 480 465 476 984 2,373

Subordinated notes 1,597 1,596 1,611 1,485 574 3,193 1,214 and debentures

Total interest 3,137 3,519 3,905 4,710 5,296 6,656 15,637 expense

Net interest 58,174 56,640 56,020 53,524 52,609 114,814 105,434 income

PROVISION FOR(RELEASE OF) LOAN (1,969 ) 4,367 10,236 15,740 15,518 2,398 29,973 AND LEASE LOSSES

Net interestincome afterprovision for 60,143 52,273 45,784 37,784 37,091 112,416 75,461 (release of) loanand lease losses

NON-INTEREST INCOME

Fees and servicecharges on 1,768 1,664 1,740 1,603 1,455 3,432 3,128 deposits

Loan servicing 3,188 2,769 2,645 2,936 2,980 5,957 5,738 revenue

Loan servicing 7 (1,505 ) (2,298 ) 1,122 (711 ) (1,498 ) (3,775 )asset revaluation

ATM and 1,044 1,012 1,076 1,028 845 2,056 2,061 interchange fees

Net gains (losses)on sales of (136 ) 1,462 2,889 1,037 - 1,326 1,375 securitiesavailable-for-sale

Change in fairvalue of equity 517 (206 ) 428 154 766 311 147 securities, net

Net gains on sales 12,270 8,319 9,449 12,671 6,456 20,589 11,229 of loans

Wealth management 722 768 710 693 608 1,490 1,277 and trust income

Other non-interest 1,622 1,459 1,051 990 430 3,081 956 income

Total non-interest 21,002 15,742 17,690 22,234 12,829 36,744 22,136 income

NON-INTEREST EXPENSE

Salaries and 24,588 21,806 22,559 23,126 19,405 46,394 44,071 employee benefits

Occupancy andequipment expense, 4,856 5,779 6,854 5,220 5,359 10,635 10,883 net

Loan and lease 1,503 951 1,324 2,053 1,260 2,454 2,578 related expenses

Legal, audit, andother professional 2,898 2,214 1,336 2,390 2,078 5,112 4,412 fees

Data processing 2,847 2,755 2,748 2,661 2,826 5,602 5,491

Net lossrecognized onother real estate 389 621 495 349 456 1,010 975 owned and otherrelated expenses

Other intangibleassets 1,848 1,749 1,892 1,947 1,892 3,597 3,785 amortizationexpense

Other non-interest 4,052 2,967 9,813 3,941 3,777 7,019 8,519 expense

Total non-interest 42,981 38,842 47,021 41,687 37,053 81,823 80,714 expense

INCOME BEFOREPROVISION FOR 38,164 29,173 16,453 18,331 12,867 67,337 16,883 INCOME TAXES

PROVISION FOR 9,672 7,375 4,162 5,260 3,728 17,047 4,778 INCOME TAXES

NET INCOME 28,492 21,798 12,291 13,071 9,139 50,290 12,105

Dividends on 195 196 196 196 195 391 391 preferred shares

INCOME AVAILABLETO COMMON $ 28,297 $ 21,602 $ 12,095 $ 12,875 $ 8,944 $ 49,899 $ 11,714 STOCKHOLDERS

EARNINGS PER COMMON SHARE

Basic $ 0.75 $ 0.57 $ 0.32 $ 0.34 $ 0.24 $ 1.31 $ 0.31

Diluted $ 0.73 $ 0.56 $ 0.31 $ 0.34 $ 0.24 $ 1.29 $ 0.31

BYLINE BANCORP, INC. AND SUBSIDIARIES

SELECTED FINANCIAL DATA (unaudited)

As of or For the Three Months Ended

As of or For the Six Months Ended

(dollars in thousands, except share and per share data)

June 30,

March 31,

December 31,

September 30,

June 30,

June 30,

June 30,

2021

2021

2020

2020

2020

2021

2020

Common Share Data

Summary of Operations

Earnings per Common Share

Basic earnings per common share

$

0.75

$

0.57

$

0.32

$

0.34

$

0.24

$

1.31

$

0.31

Diluted earnings per common share

$

0.73

$

0.56

$

0.31

$

0.34

$

0.24

$

1.29

$

0.31

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

$

0.77

$

0.57

$

0.38

$

0.34

$

0.24

$

1.34

$

0.32

Weighted average common shares outstanding (basic)

37,965,658

38,164,201

38,202,665

38,057,350

37,919,480

38,064,381

37,931,406

Weighted average common shares outstanding (diluted)

38,696,036

38,915,482

38,574,129

38,249,335

38,027,289

38,773,018

38,350,064

Common shares outstanding

38,094,972

38,641,851

38,618,054

38,568,916

38,383,217

38,094,972

38,388,217

Cash dividends per common share

$

0.06

$

0.06

$

0.03

$

0.03

$

0.03

$

0.12

$

0.06

Dividend payout ratio on common stock

8.22

%

10.71

%

9.68

%

8.82

%

12.50

%

9.30

%

19.35

%

Tangible book value per common share(1)

$

16.74

$

15.85

$

16.12

$

15.81

$

15.47

$

16.74

$

15.47

Key Ratios and Performance Metrics (annualized where applicable)

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

3.76

%

3.78

%

3.78

%

3.61

%

3.72

%

3.77

%

3.94

%

Average cost of deposits

0.08

%

0.12

%

0.15

%

0.22

%

0.36

%

0.10

%

0.54

%

Efficiency ratio(2)

51.95

%

51.25

%

61.22

%

52.46

%

53.73

%

51.61

%

60.30

%

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

49.50

%

50.41

%

55.77

%

52.42

%

53.73

%

49.93

%

59.74

%

Non-interest expense to average assets

2.57

%

2.39

%

2.92

%

2.59

%

2.41

%

2.48

%

2.76

%

Adjusted non-interest expense to average assets(1)(3)

2.45

%

2.35

%

2.67

%

2.59

%

2.41

%

2.40

%

2.74

%

Return on average stockholders' equity

14.10

%

10.96

%

6.07

%

6.57

%

4.74

%

12.54

%

3.16

%

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

14.80

%

11.18

%

7.50

%

6.58

%

4.74

%

13.01

%

3.29

%

Return on average assets

1.70

%

1.34

%

0.76

%

0.81

%

0.59

%

1.52

%

0.41

%

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

1.78

%

1.37

%

0.94

%

0.81

%

0.59

%

1.58

%

0.43

%

Non-interest income to total revenues(1)

26.53

%

21.75

%

24.00

%

29.35

%

19.61

%

24.24

%

17.35

%

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

2.16

%

2.06

%

1.66

%

2.12

%

1.85

%

2.11

%

1.60

%

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

2.28

%

2.10

%

1.91

%

2.12

%

1.85

%

2.19

%

1.63

%

Return on average tangible common stockholders' equity(1)

18.87

%

14.86

%

8.61

%

9.39

%

7.05

%

16.88

%

4.99

%

Adjusted return on average tangible common stockholders' equity(1)(3)

19.77

%

15.15

%

10.47

%

9.40

%

7.05

%

17.48

%

5.17

%

Non-interest-bearing deposits to total deposits

41.03

%

40.12

%

37.09

%

35.73

%

35.67

%

41.03

%

35.67

%

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

88.26

%

89.23

%

91.51

%

91.96

%

88.62

%

88.26

%

88.62

%

Deposits to total liabilities

88.97

%

84.36

%

85.08

%

84.36

%

88.34

%

88.97

%

88.34

%

Deposits per branch

$

115,732

$

109,229

$

103,305

$

84,390

$

86,989

$

115,732

$

86,989

Asset Quality Ratios

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

0.79

%

0.83

%

0.95

%

0.99

%

0.92

%

0.79

%

0.92

%

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

1.38

%

1.47

%

1.53

%

1.40

%

1.17

%

1.38

%

1.17

%

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

0.17

%

0.47

%

0.47

%

0.53

%

0.57

%

0.32

%

0.53

%

Acquisition accounting adjustments(4)

$

9,393

$

10,424

$

13,389

$

17,133

$

19,324

$

9,393

$

19,324

Capital Ratios

Common equity to total assets

12.33

%

11.61

%

12.44

%

12.07

%

12.05

%

12.33

%

12.05

%

Tangible common equity to tangible assets(1)

10.01

%

9.31

%

10.01

%

9.64

%

9.55

%

10.01

%

9.55

%

Leverage ratio

10.82

%

10.93

%

11.12

%

10.93

%

10.29

%

10.82

%

10.29

%

Common equity tier 1 capital ratio

11.97

%

12.09

%

12.20

%

12.55

%

12.33

%

11.97

%

12.33

%

Tier 1 capital ratio

13.05

%

13.20

%

13.36

%

13.77

%

13.56

%

13.05

%

13.56

%

Total capital ratio

15.74

%

15.96

%

16.18

%

16.67

%

15.86

%

15.74

%

15.86

%

BYLINE BANCORP, INC. AND SUBSIDIARIES

SELECTED FINANCIAL DATA (unaudited)

As of or For the Three Months Ended As of or For the Six Months Ended

(dollars in June 30, March 31, December 31, September 30, June 30, June 30, June 30,thousands, exceptshare and per sharedata) 2021 2021 2020 2020 2020 2021 2020

Common Share Data

Summary of Operations

Earnings per Common Share

Basic earnings per $ 0.75 $ 0.57 $ 0.32 $ 0.34 $ 0.24 $ 1.31 $ 0.31 common share

Diluted earnings per $ 0.73 $ 0.56 $ 0.31 $ 0.34 $ 0.24 $ 1.29 $ 0.31 common share

Adjusted dilutedearnings per common $ 0.77 $ 0.57 $ 0.38 $ 0.34 $ 0.24 $ 1.34 $ 0.32 share^(2)(3)(4)

Weighted averagecommon shares 37,965,658 38,164,201 38,202,665 38,057,350 37,919,480 38,064,381 37,931,406 outstanding (basic)

Weighted averagecommon shares 38,696,036 38,915,482 38,574,129 38,249,335 38,027,289 38,773,018 38,350,064 outstanding(diluted)

Common shares 38,094,972 38,641,851 38,618,054 38,568,916 38,383,217 38,094,972 38,388,217 outstanding

Cash dividends per $ 0.06 $ 0.06 $ 0.03 $ 0.03 $ 0.03 $ 0.12 $ 0.06 common share

Dividend payoutratio on common 8.22 % 10.71 % 9.68 % 8.82 % 12.50 % 9.30 % 19.35 %stock

Tangible book value $ 16.74 $ 15.85 $ 16.12 $ 15.81 $ 15.47 $ 16.74 $ 15.47 per common share^(1)



Key Ratios andPerformance Metrics (annualized whereapplicable)

Net interest margin,fully taxable 3.76 % 3.78 % 3.78 % 3.61 % 3.72 % 3.77 % 3.94 %equivalent ^(1)(5)

Average cost of 0.08 % 0.12 % 0.15 % 0.22 % 0.36 % 0.10 % 0.54 %deposits

Efficiency ratio^(2) 51.95 % 51.25 % 61.22 % 52.46 % 53.73 % 51.61 % 60.30 %

Adjusted efficiency 49.50 % 50.41 % 55.77 % 52.42 % 53.73 % 49.93 % 59.74 %ratio^(1)(2)(3)

Non-interest expense 2.57 % 2.39 % 2.92 % 2.59 % 2.41 % 2.48 % 2.76 %to average assets

Adjustednon-interest expense 2.45 % 2.35 % 2.67 % 2.59 % 2.41 % 2.40 % 2.74 %to average assets^(1)(3)

Return on average 14.10 % 10.96 % 6.07 % 6.57 % 4.74 % 12.54 % 3.16 %stockholders' equity

Adjusted return onaverage 14.80 % 11.18 % 7.50 % 6.58 % 4.74 % 13.01 % 3.29 %stockholders' equity^(1)(3)(4)

Return on average 1.70 % 1.34 % 0.76 % 0.81 % 0.59 % 1.52 % 0.41 %assets

Adjusted return onaverage assets^(1) 1.78 % 1.37 % 0.94 % 0.81 % 0.59 % 1.58 % 0.43 %(3)(4)

Non-interest incometo total revenues^ 26.53 % 21.75 % 24.00 % 29.35 % 19.61 % 24.24 % 17.35 %(1)

Pre-taxpre-provision return 2.16 % 2.06 % 1.66 % 2.12 % 1.85 % 2.11 % 1.60 %on average assets^(1)

Adjusted pre-taxpre-provision return 2.28 % 2.10 % 1.91 % 2.12 % 1.85 % 2.19 % 1.63 %on average assets^(1)(3)

Return on averagetangible common 18.87 % 14.86 % 8.61 % 9.39 % 7.05 % 16.88 % 4.99 %stockholders' equity^(1)

Adjusted return onaverage tangible 19.77 % 15.15 % 10.47 % 9.40 % 7.05 % 17.48 % 5.17 %common stockholders'equity^(1)(3)

Non-interest-bearingdeposits to total 41.03 % 40.12 % 37.09 % 35.73 % 35.67 % 41.03 % 35.67 %deposits

Loans and leasesheld for sale andloans and lease held 88.26 % 89.23 % 91.51 % 91.96 % 88.62 % 88.26 % 88.62 %for investment tototal deposits

Deposits to total 88.97 % 84.36 % 85.08 % 84.36 % 88.34 % 88.97 % 88.34 %liabilities

Deposits per branch $ 115,732 $ 109,229 $ 103,305 $ 84,390 $ 86,989 $ 115,732 $ 86,989



Asset Quality Ratios

Non-performing loansand leases to totalloans and leases 0.79 % 0.83 % 0.95 % 0.99 % 0.92 % 0.79 % 0.92 %held for investment,net before ALLL

ALLL to total loansand leases held for 1.38 % 1.47 % 1.53 % 1.40 % 1.17 % 1.38 % 1.17 %investment, netbefore ALLL

Net charge-offs toaverage total loansand leases held for 0.17 % 0.47 % 0.47 % 0.53 % 0.57 % 0.32 % 0.53 %investment, netbefore ALLL

Acquisitionaccounting $ 9,393 $ 10,424 $ 13,389 $ 17,133 $ 19,324 $ 9,393 $ 19,324 adjustments^(4)



Capital Ratios

Common equity to 12.33 % 11.61 % 12.44 % 12.07 % 12.05 % 12.33 % 12.05 %total assets

Tangible commonequity to tangible 10.01 % 9.31 % 10.01 % 9.64 % 9.55 % 10.01 % 9.55 %assets^(1)

Leverage ratio 10.82 % 10.93 % 11.12 % 10.93 % 10.29 % 10.82 % 10.29 %

Common equity tier 1 11.97 % 12.09 % 12.20 % 12.55 % 12.33 % 11.97 % 12.33 %capital ratio

Tier 1 capital ratio 13.05 % 13.20 % 13.36 % 13.77 % 13.56 % 13.05 % 13.56 %

Total capital ratio 15.74 % 15.96 % 16.18 % 16.67 % 15.86 % 15.74 % 15.86 %

(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 June 30,

2021

2020

(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

$

75,382

$

28

0.15

%

$

58,971

$

25

0.17

%

Loans and leases(1)

4,491,197

54,324

4.85

%

4,283,654

50,153

4.71

%

Taxable securities

1,477,070

5,947

1.62

%

1,243,604

7,021

2.27

%

Tax-exempt securities(2)

187,967

1,281

2.73

%

117,340

894

3.06

%

Total interest-earning assets

$

6,231,616

$

61,580

3.96

%

$

5,703,569

$

58,093

4.10

%

Allowance for loan and lease losses

(65,848

)

(43,009

)

All other assets

554,724

526,414

TOTAL ASSETS

$

6,720,492

$

6,186,974

LIABILITIES AND STOCKHOLDERS' EQUITY

Deposits

Interest checking

$

626,886

$

220

0.14

%

$

392,070

$

165

0.17

%

Money market accounts

1,052,223

279

0.11

%

1,214,713

946

0.31

%

Savings

607,035

72

0.05

%

511,049

61

0.05

%

Time deposits

717,795

487

0.27

%

976,710

3,074

1.27

%

Total interest-bearing deposits

3,003,939

1,058

0.14

%

3,094,542

4,246

0.00

%

Other borrowings

642,586

482

0.30

%

534,766

476

0.36

%

Subordinated notes and debentures

110,030

1,597

5.82

%

40,180

574

5.75

%

Total borrowings

752,616

2,079

1.11

%

574,946

1,050

0.73

%

Total interest-bearing liabilities

$

3,756,555

$

3,137

0.33

%

$

3,669,488

$

5,296

0.58

%

Non-interest-bearing demand deposits

2,085,358

1,692,723

Other liabilities

68,089

48,884

Total stockholders' equity

810,490

775,879

TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY

$

6,720,492

$

6,186,974

Net interest spread(3)

3.63

%

3.52

%

Net interest income, fully taxable equivalent

$

58,443

$

52,797

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

3.76

%

3.72

%

Tax-equivalent adjustment

(269

)

0.02

%

(188

)

0.01

%

Net interest income

$

58,174

$

52,609

Net interest margin(4)

3.74

%

3.71

%

Net loan accretion impact on margin

$

1,395

0.09

%

$

3,172

0.22

%

BYLINE BANCORP, INC. AND SUBSIDIARIES

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

(unaudited)

For the Three Months Ended June 30,

2021 2020

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

ASSETS

Cash and cash $ 75,382 $ 28 0.15 % $ 58,971 $ 25 0.17 %equivalents

Loans and leases^(1) 4,491,197 54,324 4.85 % 4,283,654 50,153 4.71 %

Taxable securities 1,477,070 5,947 1.62 % 1,243,604 7,021 2.27 %

Tax-exempt 187,967 1,281 2.73 % 117,340 894 3.06 %securities^(2)

Totalinterest-earning $ 6,231,616 $ 61,580 3.96 % $ 5,703,569 $ 58,093 4.10 %assets

Allowance for loan (65,848 ) (43,009 ) and lease losses

All other assets 554,724 526,414

TOTAL ASSETS $ 6,720,492 $ 6,186,974

LIABILITIES AND STOCKHOLDERS' EQUITY

Deposits

Interest checking $ 626,886 $ 220 0.14 % $ 392,070 $ 165 0.17 %

Money market 1,052,223 279 0.11 % 1,214,713 946 0.31 %accounts

Savings 607,035 72 0.05 % 511,049 61 0.05 %

Time deposits 717,795 487 0.27 % 976,710 3,074 1.27 %

Totalinterest-bearing 3,003,939 1,058 0.14 % 3,094,542 4,246 0.00 %deposits

Other borrowings 642,586 482 0.30 % 534,766 476 0.36 %

Subordinated notes 110,030 1,597 5.82 % 40,180 574 5.75 %and debentures

Total borrowings 752,616 2,079 1.11 % 574,946 1,050 0.73 %

Totalinterest-bearing $ 3,756,555 $ 3,137 0.33 % $ 3,669,488 $ 5,296 0.58 %liabilities

Non-interest-bearing 2,085,358 1,692,723 demand deposits

Other liabilities 68,089 48,884

Total stockholders' 810,490 775,879 equity

TOTAL LIABILITIESAND STOCKHOLDERS' $ 6,720,492 $ 6,186,974 EQUITY

Net interest spread^ 3.63 % 3.52 %(3)

Net interest income,fully taxable $ 58,443 $ 52,797 equivalent

Net interest margin,fully taxable 3.76 % 3.72 %equivalent^(2)(4)

Tax-equivalent (269 ) 0.02 % (188 ) 0.01 %adjustment

Net interest income $ 58,174 $ 52,609

Net interest margin^ 3.74 % 3.71 %(4)



Net loan accretion $ 1,395 0.09 % $ 3,172 0.22 %impact 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 Six Months Ended June 30,

2021

2020

(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

$

65,484

$

56

0.17

%

$

48,952

$

182

0.75

%

Loans and leases(1)

4,461,884

108,132

4.89

%

4,041,433

104,311

5.19

%

Taxable securities

1,453,976

11,326

1.57

%

1,209,362

15,337

2.55

%

Tax-exempt securities(2)

183,689

2,475

2.72

%

101,010

1,571

3.13

%

Total interest-earning assets

$

6,165,033

$

121,989

3.99

%

$

5,400,757

$

121,401

4.52

%

Allowance for loan and lease losses

(66,415

)

(38,336

)

All other assets

555,877

514,042

TOTAL ASSETS

$

6,654,495

$

5,876,463

LIABILITIES AND STOCKHOLDERS' EQUITY

Deposits

Interest checking

$

587,030

$

419

0.14

%

$

365,487

$

425

0.23

%

Money market accounts

1,087,964

660

0.12

%

1,088,459

3,160

0.58

%

Savings

592,350

139

0.05

%

495,660

122

0.05

%

Time deposits

747,366

1,261

0.34

%

1,045,153

8,343

1.61

%

Total interest-bearing deposits

3,014,710

2,479

0.17

%

2,994,759

12,050

0.81

%

Other borrowings

646,093

984

0.31

%

527,937

2,373

0.90

%

Subordinated notes and debentures

109,945

3,193

5.86

%

38,782

1,214

6.30

%

Total borrowings

756,038

4,177

1.11

%

566,719

3,587

1.27

%

Total interest-bearing liabilities

$

3,770,748

$

6,656

0.36

%

$

3,561,478

$

15,637

0.88

%

Non-interest-bearing demand deposits

2,005,213

1,495,761

Other liabilities

70,052

48,571

Total stockholders' equity

808,482

770,653

TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY

$

6,654,495

$

5,876,463

Net interest spread(3)

3.63

%

3.64

%

Net interest income, fully taxable equivalent

$

115,333

$

105,764

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

3.77

%

3.94

%

Tax-equivalent adjustment

(519

)

0.01

%

(330

)

0.01

%

Net interest income

$

114,814

$

105,434

Net interest margin(4)

3.76

%

3.93

%

Net loan accretion impact on margin

$

3,363

0.11

%

$

6,843

0.25

%

BYLINE BANCORP, INC. AND SUBSIDIARIES

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

(unaudited)

For the Six Months Ended June 30,

2021 2020

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

ASSETS

Cash and cash $ 65,484 $ 56 0.17 % $ 48,952 $ 182 0.75 %equivalents

Loans and leases^(1) 4,461,884 108,132 4.89 % 4,041,433 104,311 5.19 %

Taxable securities 1,453,976 11,326 1.57 % 1,209,362 15,337 2.55 %

Tax-exempt 183,689 2,475 2.72 % 101,010 1,571 3.13 %securities^(2)

Totalinterest-earning $ 6,165,033 $ 121,989 3.99 % $ 5,400,757 $ 121,401 4.52 %assets

Allowance for loan (66,415 ) (38,336 ) and lease losses

All other assets 555,877 514,042

TOTAL ASSETS $ 6,654,495 $ 5,876,463

LIABILITIES AND STOCKHOLDERS' EQUITY

Deposits

Interest checking $ 587,030 $ 419 0.14 % $ 365,487 $ 425 0.23 %

Money market 1,087,964 660 0.12 % 1,088,459 3,160 0.58 %accounts

Savings 592,350 139 0.05 % 495,660 122 0.05 %

Time deposits 747,366 1,261 0.34 % 1,045,153 8,343 1.61 %

Totalinterest-bearing 3,014,710 2,479 0.17 % 2,994,759 12,050 0.81 %deposits

Other borrowings 646,093 984 0.31 % 527,937 2,373 0.90 %

Subordinated notes 109,945 3,193 5.86 % 38,782 1,214 6.30 %and debentures

Total borrowings 756,038 4,177 1.11 % 566,719 3,587 1.27 %

Totalinterest-bearing $ 3,770,748 $ 6,656 0.36 % $ 3,561,478 $ 15,637 0.88 %liabilities

Non-interest-bearing 2,005,213 1,495,761 demand deposits

Other liabilities 70,052 48,571

Total stockholders' 808,482 770,653 equity

TOTAL LIABILITIESAND STOCKHOLDERS' $ 6,654,495 $ 5,876,463 EQUITY

Net interest spread^ 3.63 % 3.64 %(3)

Net interest income,fully taxable $ 115,333 $ 105,764 equivalent

Net interest margin,fully taxable 3.77 % 3.94 %equivalent^(2)(4)

Tax-equivalent (519 ) 0.01 % (330 ) 0.01 %adjustment

Net interest income $ 114,814 $ 105,434

Net interest margin^ 3.76 % 3.93 %(4)



Net loan accretion $ 3,363 0.11 % $ 6,843 0.25 %impact 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

RECONCILIATION OF NON-GAAP FINANCIAL MEASURES (unaudited)

Non-GAAP Financial Measures

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

As of or For the Three Months Ended

As of or For the Six Months Ended

(dollars in thousands, except per share data)

June 30,

2021

March 31,

2021

December 31,

2020

September 30,

2020

June 30,

2020

June 30,

2021

June 30,

2020

Net income and earnings per share excluding significant items

Reported Net Income

$

28,492

$

21,798

$

12,291

$

13,071

$

9,139

$

50,290

$

12,105

Significant items:

Impairment charges on assets held for sale

1,942

604

4,022

32

-

2,546

715

Tax benefit

(529

)

(165

)

(1,120

)

(9

)

-

(694

)

(199

)

Adjusted Net Income

$

29,905

$

22,237

$

15,193

$

13,094

$

9,139

$

52,142

$

12,621

Reported Diluted Earnings per Share

$

0.73

$

0.56

$

0.31

$

0.34

$

0.24

$

1.29

$

0.31

Significant items:

Impairment charges on assets held for sale

0.05

0.02

0.10

-

-

0.07

0.02

Tax benefit

(0.01

)

(0.01

)

(0.03

)

-

-

(0.02

)

(0.01

)

Adjusted Diluted Earnings per Share

$

0.77

$

0.57

$

0.38

$

0.34

$

0.24

$

1.34

$

0.32

BYLINE BANCORP, INC. AND SUBSIDIARIES

RECONCILIATION OF NON-GAAP FINANCIAL MEASURES (unaudited)

Non-GAAP Financial Measures

This release contains certain financial information determined by methods otherthan in accordance with accounting principles generally accepted in the UnitedStates of America ("GAAP"). These measures include adjusted net income,adjusted diluted earnings per share, adjusted efficiency ratio, adjustednon-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 onaverage assets, adjusted pre-tax pre-provision return on average assets,tangible book value per common share, tangible common equity to tangibleassets, return on average tangible common stockholders' equity, and adjustedreturn on average tangible common stockholders' equity. Management believesthat these non-GAAP financial measures provide useful information to managementand 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 oflimitations. As such, these disclosures should not be viewed as a substitutefor results determined in accordance with GAAP financial measures that we andother companies use. Management also uses these measures for peer comparison.See below in the financial schedules included in this press release for areconciliation of the non-GAAP financial measures to the comparable GAAPfinancial measures. Additionally, please refer to the Company's Annual Reporton Form 10-K for the detailed definitions of these non-GAAP financial measures.

As of or For the Three Months Ended As of or For the Six Months Ended

(dollars in June 30, March 31, December September June 30, June 30, June 30,thousands, except 31, 30, per share data) 2021 2021 2020 2021 2020 2020 2020

Net income andearnings per share excludingsignificant items

Reported Net $ 28,492 $ 21,798 $ 12,291 $ 13,071 $ 9,139 $ 50,290 $ 12,105 Income

Significant items:

Impairmentcharges on assets 1,942 604 4,022 32 - 2,546 715 held for sale

Tax benefit (529 ) (165 ) (1,120 ) (9 ) - (694 ) (199 )

Adjusted Net $ 29,905 $ 22,237 $ 15,193 $ 13,094 $ 9,139 $ 52,142 $ 12,621 Income

Reported DilutedEarnings per $ 0.73 $ 0.56 $ 0.31 $ 0.34 $ 0.24 $ 1.29 $ 0.31 Share

Significant items:

Impairmentcharges on assets 0.05 0.02 0.10 - - 0.07 0.02 held for sale

Tax benefit (0.01 ) (0.01 ) (0.03 ) - - (0.02 ) (0.01 )

Adjusted DilutedEarnings per $ 0.77 $ 0.57 $ 0.38 $ 0.34 $ 0.24 $ 1.34 $ 0.32 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 Six Months Ended

(dollars in thousands, except per share data, ratios annualized, where applicable)

June 30,

2021

March 31,

2021

December 31,

2020

September 30,

2020

June 30,

2020

June 30,

2021

June 30,

2020

Adjusted non-interest expense:

Non-interest expense

$

42,981

$

38,842

$

47,021

$

41,687

$

37,053

$

81,823

$

80,714

Less: Significant items

Impairment charges on assets held for sale

1,942

604

4,022

32

-

2,546

715

Adjusted non-interest expense

$

41,039

$

38,238

$

42,999

$

41,655

$

37,053

$

79,277

$

79,999

Adjusted non-interest expense excluding amortization of intangible assets:

Adjusted non-interest expense

$

41,039

$

38,238

$

42,999

$

41,655

$

37,053

$

79,277

$

79,999

Less: Amortization of intangible assets

1,848

1,749

1,892

1,947

1,892

3,597

3,785

Adjusted non-interest expense excluding amortization of intangible assets

$

39,191

$

36,489

$

41,107

$

39,708

$

35,161

$

75,680

$

76,214

Pre-tax pre-provision net income:

Pre-tax income

$

38,164

$

29,173

$

16,453

$

18,331

$

12,867

$

67,337

$

16,883

Add: Provision for loan and lease losses

(1,969

)

4,367

10,236

15,740

15,518

2,398

29,973

Pre-tax pre-provision net income

$

36,195

$

33,540

$

26,689

$

34,071

$

28,385

$

69,735

$

46,856

Adjusted pre-tax pre-provision net income:

Pre-tax pre-provision net income

$

36,195

$

33,540

$

26,689

$

34,071

$

28,385

$

69,735

$

46,856

Impairment charges on assets held for sale

1,942

604

4,022

32

-

2,546

715

Adjusted pre-tax pre-provision net income

$

38,137

$

34,144

$

30,711

$

34,103

$

28,385

$

72,281

$

47,571

Tax Equivalent Net Interest Income

Net interest income

$

58,174

$

56,640

$

56,020

$

53,524

$

52,609

$

114,814

$

105,434

Add: Tax-equivalent adjustment

269

250

240

222

188

519

330

Net interest income, fully taxable equivalent

$

58,443

$

56,890

$

56,260

$

53,746

$

52,797

$

115,333

$

105,764

Total revenues:

Net interest income

$

58,174

$

56,640

$

56,020

$

53,524

$

52,609

$

114,814

$

105,434

Add: Non-interest income

21,002

15,742

17,690

22,234

12,829

36,744

22,136

Total revenues

$

79,176

$

72,382

$

73,710

$

75,758

$

65,438

$

151,558

$

127,570

Tangible common stockholders' equity:

Total stockholders' equity

$

817,073

$

793,795

$

805,464

$

794,696

$

780,935

$

817,073

$

780,935

Less: Preferred stock

10,438

10,438

10,438

10,438

10,438

10,438

10,438

Less: Goodwill and other intangibles

169,034

170,882

172,631

174,523

176,470

169,034

176,470

Tangible common stockholders' equity

$

637,601

$

612,475

$

622,395

$

609,735

$

594,027

$

637,601

$

594,027

Tangible assets:

Total assets

$

6,540,602

$

6,750,125

$

6,390,652

$

6,496,513

$

6,393,518

$

6,540,602

$

6,393,518

Less: Goodwill and other intangibles

169,034

170,882

172,631

174,523

176,470

169,034

176,470

Tangible assets

$

6,371,568

$

6,579,243

$

6,218,021

$

6,321,990

$

6,217,048

$

6,371,568

$

6,217,048

Average tangible common stockholders' equity:

Average total stockholders' equity

$

810,490

$

806,452

$

805,593

$

791,111

$

775,879

$

808,482

$

770,653

Less: Average preferred stock

10,438

10,438

10,438

10,438

10,438

10,438

10,438

Less: Average goodwill and other intangibles

169,906

171,795

173,536

175,443

177,440

170,845

178,428

Average tangible common stockholders' equity

$

630,146

$

624,219

$

621,619

$

605,230

$

588,001

$

627,199

$

581,787

Average tangible assets:

Average total assets

$

6,720,492

$

6,587,765

$

6,400,621

$

6,401,290

$

6,186,974

$

6,654,495

$

5,876,463

Less: Average goodwill and other intangibles

169,906

171,795

173,536

175,443

177,440

170,845

178,428

Average tangible assets

$

6,550,586

$

6,415,970

$

6,227,085

$

6,225,847

$

6,009,534

$

6,483,650

$

5,698,035

Tangible net income available to common stockholders:

Net income available to common stockholders

$

28,297

$

21,602

$

12,095

$

12,875

$

8,944

$

49,899

$

11,714

Add: After-tax intangible asset amortization

1,344

1,272

1,365

1,405

1,365

2,616

2,731

Tangible net income available to common stockholders

$

29,641

$

22,874

$

13,460

$

14,280

$

10,309

$

52,515

$

14,445

Adjusted tangible net income available to common stockholders:

Tangible net income available to common stockholders

$

29,641

$

22,874

$

13,460

$

14,280

$

10,309

$

52,515

$

14,445

Impairment charges on assets held for sale

1,942

604

4,022

32

-

2,546

715

Tax benefit on significant items

(529

)

(165

)

(1,120

)

(9

)

-

(694

)

(199

)

Adjusted tangible net income available to common stockholders

$

31,054

$

23,313

$

16,362

$

14,303

$

10,309

$

54,367

$

14,961

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 Six Months Ended

(dollars inthousands,except per June 30, March 31, December 31, September 30, June 30, June 30, June 30,share data, ratios 2021 2021 2020 2020 2020 2021 2020annualized,whereapplicable)

Adjustednon-interest expense:

Non-interest $ 42,981 $ 38,842 $ 47,021 $ 41,687 $ 37,053 $ 81,823 $ 80,714 expense

Less:Significant items

Impairmentcharges on 1,942 604 4,022 32 - 2,546 715 assets heldfor sale

Adjustednon-interest $ 41,039 $ 38,238 $ 42,999 $ 41,655 $ 37,053 $ 79,277 $ 79,999 expense

Adjustednon-interestexpenseexcluding amortizationof intangibleassets:

Adjustednon-interest $ 41,039 $ 38,238 $ 42,999 $ 41,655 $ 37,053 $ 79,277 $ 79,999 expense

Less:Amortization 1,848 1,749 1,892 1,947 1,892 3,597 3,785 of intangibleassets

Adjustednon-interestexpenseexcluding $ 39,191 $ 36,489 $ 41,107 $ 39,708 $ 35,161 $ 75,680 $ 76,214 amortizationof intangibleassets

Pre-taxpre-provision net income:

Pre-tax income $ 38,164 $ 29,173 $ 16,453 $ 18,331 $ 12,867 $ 67,337 $ 16,883

Add: Provisionfor loan and (1,969 ) 4,367 10,236 15,740 15,518 2,398 29,973 lease losses

Pre-taxpre-provision $ 36,195 $ 33,540 $ 26,689 $ 34,071 $ 28,385 $ 69,735 $ 46,856 net income

Adjustedpre-tax pre-provisionnet income:

Pre-taxpre-provision $ 36,195 $ 33,540 $ 26,689 $ 34,071 $ 28,385 $ 69,735 $ 46,856 net income

Impairmentcharges on 1,942 604 4,022 32 - 2,546 715 assets heldfor sale

Adjustedpre-tax $ 38,137 $ 34,144 $ 30,711 $ 34,103 $ 28,385 $ 72,281 $ 47,571 pre-provisionnet income

Tax EquivalentNet Interest Income

Net interest $ 58,174 $ 56,640 $ 56,020 $ 53,524 $ 52,609 $ 114,814 $ 105,434 income

Add:Tax-equivalent 269 250 240 222 188 519 330 adjustment

Net interestincome, fully $ 58,443 $ 56,890 $ 56,260 $ 53,746 $ 52,797 $ 115,333 $ 105,764 taxableequivalent

Total revenues:

Net interest $ 58,174 $ 56,640 $ 56,020 $ 53,524 $ 52,609 $ 114,814 $ 105,434 income

Add:Non-interest 21,002 15,742 17,690 22,234 12,829 36,744 22,136 income

Total revenues $ 79,176 $ 72,382 $ 73,710 $ 75,758 $ 65,438 $ 151,558 $ 127,570

Tangiblecommon stockholders'equity:

Totalstockholders' $ 817,073 $ 793,795 $ 805,464 $ 794,696 $ 780,935 $ 817,073 $ 780,935 equity

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

Less: Goodwilland other 169,034 170,882 172,631 174,523 176,470 169,034 176,470 intangibles

Tangiblecommon $ 637,601 $ 612,475 $ 622,395 $ 609,735 $ 594,027 $ 637,601 $ 594,027 stockholders'equity

Tangible assets:

Total assets $ 6,540,602 $ 6,750,125 $ 6,390,652 $ 6,496,513 $ 6,393,518 $ 6,540,602 $ 6,393,518

Less: Goodwilland other 169,034 170,882 172,631 174,523 176,470 169,034 176,470 intangibles

Tangible $ 6,371,568 $ 6,579,243 $ 6,218,021 $ 6,321,990 $ 6,217,048 $ 6,371,568 $ 6,217,048 assets

Averagetangiblecommon stockholders'equity:

Average totalstockholders' $ 810,490 $ 806,452 $ 805,593 $ 791,111 $ 775,879 $ 808,482 $ 770,653 equity

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

Less: Averagegoodwill and 169,906 171,795 173,536 175,443 177,440 170,845 178,428 otherintangibles

Averagetangiblecommon $ 630,146 $ 624,219 $ 621,619 $ 605,230 $ 588,001 $ 627,199 $ 581,787 stockholders'equity

Averagetangible assets:

Average total $ 6,720,492 $ 6,587,765 $ 6,400,621 $ 6,401,290 $ 6,186,974 $ 6,654,495 $ 5,876,463 assets

Less: Averagegoodwill and 169,906 171,795 173,536 175,443 177,440 170,845 178,428 otherintangibles

Averagetangible $ 6,550,586 $ 6,415,970 $ 6,227,085 $ 6,225,847 $ 6,009,534 $ 6,483,650 $ 5,698,035 assets

Tangible netincomeavailable to commonstockholders:

Net incomeavailable to $ 28,297 $ 21,602 $ 12,095 $ 12,875 $ 8,944 $ 49,899 $ 11,714 commonstockholders

Add: After-taxintangible 1,344 1,272 1,365 1,405 1,365 2,616 2,731 assetamortization

Tangible netincomeavailable to $ 29,641 $ 22,874 $ 13,460 $ 14,280 $ 10,309 $ 52,515 $ 14,445 commonstockholders

Adjustedtangible netincome available tocommonstockholders:

Tangible netincomeavailable to $ 29,641 $ 22,874 $ 13,460 $ 14,280 $ 10,309 $ 52,515 $ 14,445 commonstockholders

Impairmentcharges on 1,942 604 4,022 32 - 2,546 715 assets heldfor sale

Tax benefit onsignificant (529 ) (165 ) (1,120 ) (9 ) - (694 ) (199 )items

Adjustedtangible netincome $ 31,054 $ 23,313 $ 16,362 $ 14,303 $ 10,309 $ 54,367 $ 14,961 available tocommonstockholders

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 Six Months Ended

(dollars in thousands, except share and per share data, ratios annualized, where applicable)

June 30,

2021

March 31,

2021

December 31,

2020

September 30,

2020

June 30,

2020

June 30,

2021

June 30,

2020

Pre-tax pre-provision return on average assets:

Pre-tax pre-provision net income

$

36,195

$

33,540

$

26,689

$

34,071

$

28,385

$

69,735

$

46,856

Average total assets

6,720,492

6,587,765

6,400,621

6,401,290

6,186,974

6,654,495

5,876,463

Pre-tax pre-provision return on average assets

2.16

%

2.06

%

1.66

%

2.12

%

1.85

%

2.11

%

1.60

%

Adjusted pre-tax pre-provision return on average assets:

Adjusted pre-tax pre-provision net income

$

38,137

$

34,144

$

30,711

$

34,103

$

28,385

$

72,281

$

47,571

Average total assets

6,720,492

6,587,765

6,400,621

6,401,290

6,186,974

6,654,495

5,876,463

Adjusted pre-tax pre-provision return on average assets

2.28

%

2.10

%

1.91

%

2.12

%

1.85

%

2.19

%

1.63

%

Net interest margin, fully taxable equivalent

Net interest income, fully taxable equivalent

$

58,443

$

56,890

$

56,260

$

53,746

$

52,797

$

115,333

$

105,764

Total average interest-earning assets

6,231,616

6,097,712

5,913,746

5,916,554

5,703,569

6,165,033

5,400,757

Net interest margin, fully taxable equivalent

3.76

%

3.78

%

3.78

%

3.61

%

3.72

%

3.77

%

3.94

%

Non-interest income to total revenues:

Non-interest income

$

21,002

$

15,742

$

17,690

$

22,234

$

12,829

$

36,744

$

22,136

Total revenues

79,176

72,382

73,710

75,758

65,438

151,558

127,570

Non-interest income to total revenues

26.53

%

21.75

%

24.00

%

29.35

%

19.61

%

24.24

%

17.35

%

Adjusted non-interest expense to average assets:

Adjusted non-interest expense

$

41,039

$

38,238

$

42,999

$

41,655

$

37,053

$

79,277

$

79,999

Average total assets

6,720,492

6,587,765

6,400,621

6,401,290

6,186,974

6,654,495

5,876,463

Adjusted non-interest expense to average assets

2.45

%

2.35

%

2.67

%

2.59

%

2.41

%

2.40

%

2.74

%

Adjusted efficiency ratio:

Adjusted non-interest expense excluding amortization of intangible assets

$

39,191

$

36,489

$

41,107

$

39,708

$

35,161

$

75,680

$

76,214

Total revenues

79,176

72,382

73,710

75,758

65,438

151,558

127,570

Adjusted efficiency ratio

49.50

%

50.41

%

55.77

%

52.42

%

53.73

%

49.93

%

59.74

%

Adjusted return on average assets:

Adjusted net income

$

29,905

$

22,237

$

15,193

$

13,094

$

9,139

$

52,142

$

12,621

Average total assets

6,720,492

6,587,765

6,400,621

6,401,290

6,186,974

6,654,495

5,876,463

Adjusted return on average assets

1.78

%

1.37

%

0.94

%

0.81

%

0.59

%

1.58

%

0.43

%

Adjusted return on average stockholders' equity:

Adjusted net income

$

29,905

$

22,237

$

15,193

$

13,094

$

9,139

$

52,142

$

12,621

Average stockholders' equity

810,490

806,452

805,593

791,111

775,879

808,482

770,653

Adjusted return on average stockholders' equity

14.80

%

11.18

%

7.50

%

6.58

%

4.74

%

13.01

%

3.29

%

Tangible common equity to tangible assets:

Tangible common equity

$

637,601

$

612,475

$

622,395

$

609,735

$

594,027

$

637,601

$

594,027

Tangible assets

6,371,568

6,579,243

6,218,021

6,321,990

6,217,048

6,371,568

6,217,048

Tangible common equity to tangible assets

10.01

%

9.31

%

10.01

%

9.64

%

9.55

%

10.01

%

9.55

%

Return on average tangible common stockholders' equity:

Tangible net income available to common stockholders

$

29,641

$

22,874

$

13,460

$

14,280

$

10,309

$

52,515

$

14,445

Average tangible common stockholders' equity

630,146

624,219

621,619

605,230

588,001

627,199

581,787

Return on average tangible common stockholders' equity

18.87

%

14.86

%

8.61

%

9.39

%

7.05

%

16.88

%

4.99

%

Adjusted return on average tangible common stockholders' equity:

Adjusted tangible net income available to common stockholders

$

31,054

$

23,313

$

16,362

$

14,303

$

10,309

$

54,367

$

14,961

Average tangible common stockholders' equity

630,146

624,219

621,619

605,230

588,001

627,199

581,787

Adjusted return on average tangible common stockholders' equity

19.77

%

15.15

%

10.47

%

9.40

%

7.05

%

17.48

%

5.17

%

Tangible book value per share:

Tangible common equity

$

637,601

$

612,475

$

622,395

$

609,735

$

594,027

$

637,601

$

594,027

Common shares outstanding

38,094,972

38,641,851

38,618,054

38,568,916

38,383,217

38,094,972

38,388,217

Tangible book value per share

$

16.74

$

15.85

$

16.12

$

15.81

$

15.47

$

16.74

$

15.47

View source version on businesswire.com: https://www.businesswire.com/news/home/20210729006134/en/

CONTACT: Investors: Brooks Rennie Investor Relations Manager Byline Bank 312-660-5805 brennie@bylinebank.com

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