Business Wire | Oct 28, 2021 04:16PM EDT

Byline Bancorp, Inc. Reports Third Quarter 2021 Financial Results

Oct. 28, 2021

CHICAGO--(BUSINESS WIRE)--Oct. 28, 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 $25.3 million, or $0.66 per diluted share, for the third quarter of 2021, compared with net income of $28.5 million, or $0.73 per diluted share, for the second quarter of 2021 and net income of $13.1 million, or $0.34 per diluted share for the third quarter 2020. Adjusted net income1 was $26.4 million, or $0.69 per adjusted diluted share, for the third quarter of 2021, compared with $29.9 million, or $0.77 per adjusted diluted share1, for the second quarter of 2021 and $13.1 million, or $0.34 per adjusted diluted share for the third quarter of 2020.

Roberto R. Herencia, Executive Chairman and Chief Executive Officer of Byline Bancorp, commented, "We reported strong third quarter results highlighted by robust balance sheet growth as our teams remained focused on taking care of our customers, while the economy continued to improve. We executed well on our commercial banking strategy during the quarter driven by solid loan and lease growth, net interest margin expansion while continuing to deploy excess capital through share repurchases and dividends. We remain optimistic about our opportunities to execute on our strategy in the future to further enhance the value of our franchise. I want to thank all of our employees for their continued hard work and dedication to serving all of our stakeholders."

Alberto J. Paracchini, President of Byline Bancorp, added, "Our strong results were supported by continued momentum across our businesses resulting in loan and lease growth, strong inflows of commercial noninterest-bearing deposits, and higher net interest income. Excluding PPP loans, our total loans and leases grew at a 34.9% annualized rate during the third quarter and more than offset the decline in our PPP portfolio. Growth was particularly strong in the commercial, sponsor finance, leasing and government guaranteed loan portfolios. Thanks to the efforts of all of our bankers and team members, we continue to have a healthy loan pipeline, which we believe will result in continued growth of our business while benefiting the mix of earning assets."

Board Declares Cash Dividend of $0.09 per Share

On October 26, 2021, the Company's Board of Directors declared a cash dividend of $0.09 per share, payable on November 23, 2021, to stockholders of record of the Company's common stock as of November 9, 2021.

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.

STATEMENTS OF OPERATIONS

Net Interest Income

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

September 30, 2021

Three Months Ended Change from

September June 30, September June 30, September 30, 30, 30,

(dollars in 2021 2021 2020 2021 2020thousands)

INTEREST AND DIVIDEND INCOME

Interest andfees on loans $ 56,291 $ 54,324 $ 51,036 3.6 % 10.3 %and leases

Interest on 5,534 6,359 7,070 (13.0 ) (21.7 )securities % %

Other interestand dividend 947 628 128 50.6 % 644.4 %income

Total interestand dividend 62,772 61,311 58,234 2.4 % 7.8 %income

INTEREST EXPENSE

Deposits 986 1,058 2,760 (6.8 ) (64.3 ) % %

Other borrowings 349 482 465 (27.4 ) (24.8 ) % %

Subordinated )notes and 1,592 1,597 1,485 (0.4 % 7.2 %debentures

Total interest 2,927 3,137 4,710 (6.7 ) (37.8 )expense % %

Net interest $ 59,845 $ 58,174 $ 53,524 2.9 % 11.8 %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

September 30, 2021 June 30, 2021

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

ASSETS

Cash and cash equivalents $ 40,088 $ 19 0.19 % $ 75,382 $ 28 0.15 %

Loans and leases^(1) 4,539,111 56,291 4.92 % 4,491,197 54,324 4.85 %

Taxable securities 1,309,802 5,472 1.66 % 1,477,070 5,947 1.62 %

Tax-exempt securities^(2) 187,064 1,254 2.66 % 187,967 1,281 2.73 %

Total interest-earning $ 6,076,065 $ 63,036 4.12 % $ 6,231,616 $ 61,580 3.96 %assets

Allowance for loan and lease (61,528 ) (65,848 ) losses

All other assets 546,331 554,724

TOTAL ASSETS $ 6,560,868 $ 6,720,492

LIABILITIES ANDSTOCKHOLDERS' EQUITY

Deposits

Interest checking $ 653,543 $ 228 0.14 % $ 626,886 $ 220 0.14 %

Money market accounts 1,031,009 280 0.11 % 1,052,223 279 0.11 %

Savings 625,037 75 0.05 % 607,035 72 0.05 %

Time deposits 709,805 403 0.23 % 717,795 487 0.27 %

Total interest-bearing 3,019,394 986 0.13 % 3,003,939 1,058 0.14 %deposits

Other borrowings 426,284 349 0.33 % 642,586 482 0.30 %

Subordinated notes and 110,195 1,592 5.73 % 110,030 1,597 5.82 %debentures

Total borrowings 536,479 1,941 1.44 % 752,616 2,079 1.11 %

Total interest-bearing $ 3,555,873 $ 2,927 0.33 % $ 3,756,555 $ 3,137 0.33 %liabilities

Non-interest-bearing demand 2,106,189 2,085,358 deposits

Other liabilities 75,052 68,089

Total stockholders' equity 823,754 810,490

TOTAL LIABILITIES AND $ 6,560,868 $ 6,720,492 STOCKHOLDERS' EQUITY

Net interest spread^(3) 3.79 % 3.63 %

Net interest income, fully $ 60,109 $ 58,443 taxable equivalent

Net interest margin, fully 3.92 % 3.76 %taxable equivalent^(2)(4)

Tax-equivalent adjustment (264 ) 0.01 % (269 ) 0.02 %

Net interest income $ 59,845 $ 58,174

Net interest margin^(4) 3.91 % 3.74 %



Net loan accretion impact on $ 1,638 0.11 % $ 1,395 0.09 %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 third quarter of 2021 was $59.8 million, an increase of $1.7 million, or 2.9%, from the second quarter of 2021.

The increase in net interest income was primarily due to:

* An increase of $2.0 million in interest income on loans and leases, due to higher balances and yields on loans and leases and increased Paycheck Protection Program ("PPP") servicing fees resulting from a higher volume of loan forgiveness.

Partially offset by:

* A decrease of $825,000 in interest income on securities, due to lower average balances of securities.

Tax-equivalent net interest margin for the third quarter of 2021 was 3.92%, an increase of 16 basis points compared to the second quarter of 2021. Total net accretion income on acquired loans contributed 11 basis points to the net interest margin for the third quarter of 2021 compared to nine basis points for the second quarter of 2021, an increase of two basis points. PPP loan interest income and net fee income combined contributed $5.4 million to net interest income for the third quarter of 2021 compared to $4.5 million for the second quarter of 2021 due to the timing of forgiveness of loans.

The average cost of total deposits was 0.08% for the third quarter of 2021, flat compared to the second quarter of 2021. Average non-interest-bearing demand deposits increased $20.8 million, while average money market account deposits decreased by $21.2 million. Average non-interest-bearing demand deposits were 41.1% of average total deposits for the third quarter of 2021 compared to 41.0% during the second quarter of 2021.

Provision for Loan and Lease Losses

The provision for loan and lease losses was $352,000 for the third quarter of 2021, an increase of $2.3 million compared to a recapture of provision of $2.0 million for the second quarter of 2021. The provision during the third quarter of 2021 was mainly driven by new loan and lease originations during the quarter, offset by a recapture of $1.7 million as a result of improved qualitative factors resulting from continued economic improvement.

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 third quarter of 2021 was $59.8 million, an increase of $1.7 million, or 2.9%, from the second quarter of 2021.

The increase in net interest income was primarily due to:

* An increase of $2.0 million in interest income on loans and leases, due to higher balances and yields on loans and leases and increased Paycheck Protection Program ("PPP") servicing fees resulting from a higher volume of loan forgiveness.

Partially offset by:

* A decrease of $825,000 in interest income on securities, due to lower average balances of securities.

Tax-equivalent net interest margin for the third quarter of 2021 was 3.92%, an increase of 16 basis points compared to the second quarter of 2021. Total net accretion income on acquired loans contributed 11 basis points to the net interest margin for the third quarter of 2021 compared to nine basis points for the second quarter of 2021, an increase of two basis points. PPP loan interest income and net fee income combined contributed $5.4 million to net interest income for the third quarter of 2021 compared to $4.5 million for the second quarter of 2021 due to the timing of forgiveness of loans.

The average cost of total deposits was 0.08% for the third quarter of 2021, flat compared to the second quarter of 2021. Average non-interest-bearing demand deposits increased $20.8 million, while average money market account deposits decreased by $21.2 million. Average non-interest-bearing demand deposits were 41.1% of average total deposits for the third quarter of 2021 compared to 41.0% during the second quarter of 2021.

Provision for Loan and Lease Losses

The provision for loan and lease losses was $352,000 for the third quarter of 2021, an increase of $2.3 million compared to a recapture of provision of $2.0 million for the second quarter of 2021. The provision during the third quarter of 2021 was mainly driven by new loan and lease originations during the quarter, offset by a recapture of $1.7 million as a result of improved qualitative factors resulting from continued economic improvement.

Non-interest Income

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

Three Months Ended September 30, 2021 Change from

September June 30, September June 30, September 30, 30, 30,

(dollars in 2021 2021 2020 2021 2020thousands)

NON-INTEREST INCOME

Fees and servicecharges on $ 1,867 $ 1,768 $ 1,603 5.6 % 16.4 %deposits

Loan servicing 3,344 3,188 2,936 4.9 % 13.9 %revenue

Loan servicing (2,650 ) 7 1,122 NM NM asset revaluation

ATM and 1,201 1,044 1,028 15.0 % 16.7 %interchange fees

Net realized gains(losses) on 130 (136 ) 1,037 NM (87.4 )securities %available-for-sale

Change in fairvalue of equity (275 ) 517 154 NM NM securities, net

Net gains on sales 12,761 12,270 12,671 4.0 % 0.7 %of loans

Wealth management 815 722 693 12.8 % 17.7 %and trust income

Other non-interest 1,302 1,622 990 (19.7 ) 31.7 %income %

Total non-interest $ 18,495 $ 21,002 $ 22,234 (11.9 ) (16.8 )income % %

Non-interest income for the third quarter of 2021 was $18.5 million, a decrease of $2.5 million, or 11.9%, compared to $21.0 million for the second quarter of 2021.

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

* A $2.7 million loan servicing asset revaluation charge, which was a $2.7 million downward valuation adjustment for the current quarter compared to a $7,000 upward valuation adjustment in the prior quarter, due to changes in the fair value of the servicing asset; and * A $793,000 decrease in the fair value of equity securities.

Partially offset by:

* An increase of $491,000 in net gains on sales of loans due to higher volume of loan sales.

During the third quarter of 2021, we sold $104.2 million of U.S. government guaranteed loans compared to $100.6 million during the second quarter of 2021.

Non-interest Expense

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

Three Months Ended September 30, 2021 Change from

September June 30, September June 30, September 30, 30, 30,

(dollars in 2021 2021 2020 2021 2020thousands)

NON-INTEREST EXPENSE

Salaries andemployee $ 25,978 $ 24,588 $ 23,126 5.7 % 12.3 %benefits

Occupancy and )equipment 4,982 4,856 5,220 2.6 % (4.6 %expense, net

Loan and lease 1,175 1,503 2,053 (21.7 ) (42.7 )related expenses % %

Legal, audit andother 2,710 2,898 2,390 (6.5 ) 13.4 %professional %fees

Data processing 3,108 2,847 2,661 9.1 % 16.8 %

Net lossrecognized onother real 42 389 349 (89.1 ) (87.8 )estate % %owned and otherrelated expenses

Other intangibleassets 1,738 1,848 1,947 (6.0 ) (10.7 )amortization % %expense

Othernon-interest 4,447 4,052 3,941 9.7 % 12.8 %expense

Totalnon-interest $ 44,180 $ 42,981 $ 41,687 2.8 % 6.0 %expense

Non-interest expense for the third quarter of 2021 was $44.2 million, an increase of $1.2 million, or 2.8%, from $43.0 million for the second quarter of 2021.

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

* An increase of $1.4 million in salaries and employee benefits, primarily due to new hires during the quarter and increased commission expense; and * An increase of $395,000 in other non-interest expense, mainly due to advertising campaigns launched during the quarter.

Partially offset by:

* A decrease of $328,000 in loan and leases related expenses, mainly due to decreases in government guaranteed loan expenses; and * A decrease of $347,000 in net loss recognized on other real estate owned and other related expenses, due to decreases in write-downs.

Our efficiency ratio was 54.18% for the third quarter of 2021 compared to 51.95% for the second quarter of 2021. Excluding impairment charges on assets held for sale, our adjusted efficiency ratio1 was 52.35% for the third quarter of 2021, compared with 49.50% for the second quarter of 2021.

INCOME TAXES

We recorded income tax expense of $8.5 million during the third quarter of 2021, compared to $9.7 million during the second quarter of 2021. The effective tax rate was 25.1%, and 25.3%, for the third quarter and second quarter of 2021, respectively.

STATEMENTS OF FINANCIAL CONDITION

Total assets were $6.7 billion at September 30, 2021, an increase of $163.8 million compared to $6.5 billion at June 30, 2021.

The current quarter increase was primarily due to:

* An increase in loans and leases of $139.8 million, as a result of new originations, primarily driven by commercial real estate and commercial and industrial loans.

Partially offset by:

* A decreases of $68.2 million in securities available-for-sale, at fair value, due to principal paydowns used to fund loan and lease growth.

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

September 30, 2021 June 30, 2021 September 30, 2020

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

Originatedloans and leases

Commercial $ 1,298,454 28.2 % $ 1,156,824 25.9 % $ 919,862 21.0 %real estate

Residential 387,578 8.4 % 389,758 8.7 % 458,364 10.5 %real estate

Construction,landdevelopment, 336,460 7.3 % 271,710 6.1 % 234,017 5.3 %andother land

Commercialand 1,480,076 32.1 % 1,350,471 30.2 % 1,214,099 27.8 %industrial

PaycheckProtection 268,081 5.8 % 476,282 10.7 % 622,191 14.2 %Program

Installment 998 0.0 % 982 0.0 % 2,346 0.1 %and other

Leasingfinancing 331,149 7.2 % 267,300 6.0 % 185,700 4.2 %receivables

Totaloriginated $ 4,102,796 89.0 % $ 3,913,327 87.6 % $ 3,636,579 83.1 %loans andleases

Acquiredimpaired loans

Commercial $ 84,821 1.8 % $ 91,313 2.0 % $ 117,114 2.7 %real estate

Residential 61,893 1.3 % 67,401 1.5 % 84,197 1.9 %real estate

Construction,landdevelopment, 1,746 0.1 % 2,008 0.0 % 4,804 0.1 %andother land

Commercialand 6,651 0.1 % 7,444 0.2 % 10,489 0.3 %industrial

Installment 169 0.0 % 180 0.0 % 214 0.0 %and other

Totalacquired $ 155,280 3.3 % $ 168,346 3.7 % $ 216,818 5.0 %impairedloans

Acquirednon-impaired loans andleases

Commercial $ 235,103 5.1 % $ 254,739 5.6 % $ 310,879 7.1 %real estate

Residential 58,283 1.3 % 65,119 1.5 % 90,835 2.1 %real estate

Construction,landdevelopment, 206 0.0 % 208 0.0 % 213 0.0 %andother land

Commercialand 49,678 1.1 % 58,320 1.3 % 104,221 2.4 %industrial

Installment 275 0.0 % 311 0.0 % 583 0.0 %and other

Leasingfinancing 7,607 0.2 % 9,087 0.3 % 14,389 0.3 %receivables

Totalacquirednon-impaired $ 351,152 7.7 % $ 387,784 8.7 % $ 521,120 11.9 %loansand leases

Total loans $ 4,609,228 100.0 % $ 4,469,457 100.0 % $ 4,374,517 100.0 %and leases

Allowance forloan and (60,598 ) (61,719 ) (61,258 ) lease losses

Total loansand leases,net of $ 4,548,630 $ 4,407,738 $ 4,313,259 allowance forloan andlease losses

Paycheck Protection Program

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

PPP Loans Outstanding

(dollars in thousands) First Round Second Total Round

Principal outstanding $ 12,561 $ 263,058 $ 275,619

Unearned processing fee (176 ) (9,503 ) (9,679 )

Deferred cost 47 2,094 2,141

PPP loans, net $ 12,432 $ 255,649 $ 268,081

Number of loans outstanding 128 1,624 1,752



Forgiven 95.9 % 22.3 % 70.7 %

In review or submission process 0.9 % 10.9 % 4.3 %

Not applied for forgiveness 3.2 % 66.8 % 25.0 %

PPP loans decreased by $208.2 million in the third quarter of 2021 primarily as a result of forgiveness of PPP loans. Forgiveness for the third quarter 2021 was $202.4 million compared to $180.7 million for the second quarter of 2021.

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 September June 30, September June 30, Septemberthousands) 30, 2021 30, 2021 30, 2021 2020 2020

Non-performing assets:

Non-accrual $ 34,465 $ 35,514 $ 43,196 (3.0 ) (20.2 )loans and leases % %

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

Total ) )non-performing $ 34,465 $ 35,514 $ 43,196 (3.0 % (20.2 %loans and leases

Other real 3,033 4,417 8,150 (31.3 ) (62.8 )estate owned % %

Total ) )non-performing $ 37,498 $ 39,931 $ 51,346 (6.1 % (27.0 %assets

Accruingtroubled debt $ 2,366 $ 2,395 $ 2,293 (1.3 ) 3.2 %restructured %loans ^(1)

Totalnon-performingloans and leasesas a 0.75 % 0.79 % 0.99 % percentage oftotal loans andleases

Totalnon-performingassets as a 0.56 % 0.61 % 0.79 % percentageof total assets

Allowance forloan and leaselosses as apercentage of 175.82 % 173.79 % 141.81 % non-performingloans andleases



Non-performingassets guaranteed byU.S. government:

Non-accrual $ 6,326 $ 5,847 $ 3,749 8.2 % 68.8 %loans guaranteed

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

Totalnon-performing $ 6,326 $ 5,847 $ 3,749 8.2 % 68.8 %loans guaranteed

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

Totalnon-performingloans and leasesnot guaranteed 0.61 % 0.66 % 0.90 % as a percentageof totalloans and leases

Totalnon-performingassets not 0.46 % 0.52 % 0.73 % guaranteedas a percentageof total assets

Variances in non-performing assets were:

* Non-performing loans and leases were $34.5 million at September 30, 2021, a decrease of $1.0 million from $35.5 million at June 30, 2021; and * Other real estate owned was $3.0 million at September 30, 2021, a decrease of $1.4 million from $4.4 million at June 30, 2021 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

September June 30, September 30, 30,

(dollars in thousands) 2021 2021 2020

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

Provision/(recapture) for loan and lease 352 (1,969 ) 15,740 losses

Net charge-offs of loans and leases (1,473 ) (1,902 ) (5,782 )

Allowance for loan and lease losses, end $ 60,598 $ 61,719 $ 61,258 of period



Allowance for loan and lease losses toperiod end 1.31 % 1.38 % 1.40 %total loans and leases held forinvestment

Net charge-offs (annualized) to averageloans 0.13 % 0.17 % 0.53 %and leases outstanding during the period

Provision/(recapture) for loan and leaselosses 0.24 x (1.04)x 2.72 xto net charge-offs during the period

The allowance for loan and lease losses as a percentage of total loans and leases held for investment decreased to 1.31% at September 30, 2021 compared to 1.38% at June 30, 2021. The allowance for loan and lease losses as a percentage of total loans and leases held for investment excluding PPP loans decreased to 1.40% at September 30, 2021 from 1.55% at June 30, 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 Company anticipates adopting the standard on December 31, 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 third quarter of 2021 were $1.5 million, or 0.13% of average loans and leases, on an annualized basis, a decrease of $429,000 compared to $1.9 million or 0.17% of average loans and leases, during the second quarter of 2021, and a decrease of $4.3 million from $5.8 million or 0.53% of average loans and leases from the comparable period a year ago.

Net charge-offs for the third quarter of 2021 included $1.3 million in the unguaranteed portion of U.S. government guaranteed loans, while net charge-offs for the second quarter of 2021 and third quarter of 2020 included $1.6 million and $4.1 million, respectively, 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:

Change from

(dollars in September 30, June 30, September 30, June 30, Septemberthousands) 2021 2021 2020 2021 30, 2020

Non-interest-bearing $ 2,117,749 $ 2,089,455 $ 1,718,682 1.4 % 23.2 %demand deposits

Interest-bearing 652,824 653,558 584,682 (0.1 ) 11.7 %checking accounts %

Money market demand 1,057,419 1,023,675 1,153,433 3.3 % (8.3 )accounts %

Other savings 627,294 613,136 542,741 2.3 % 15.6 %

Time deposits (below 553,364 567,469 622,328 (2.5 ) (11.1 )$250,000) % %

Time deposits 149,628 144,902 188,379 3.3 % (20.6 )($250,000 and above) %

Total deposits $ 5,158,278 $ 5,092,195 $ 4,810,245 1.3 % 7.2 %

Total deposits were $5.2 billion at September 30, 2021, an increase of $66.1 million, or 1.3%, compared to $5.1 billion at June 30, 2021. Non-interest-bearing deposits were 41.1% and 41.0% of total deposits at September 30, 2021 and June 30, 2021, respectively.

The increase in the current quarter was primarily due to:

* An increase in non-interest-bearing deposits of $28.3 million, due to increases in commercial deposits; and * An increase in money market demand accounts of $33.7 million, principally driven by increases in personal money market accounts.

Total borrowings and other liabilities were $721.8 million at September 30, 2021, an increase of $90.4 million from $631.3 million at June 30, 2021, primarily driven by an increase in Federal Home Loan Bank advances of $243.0 million, offset by the Paycheck Protection Program Liquidity Facility decreasing by $148.3 million to $156.4 million at September 30, 2021 from $304.7 million at June 30, 2021.

Stockholders' Equity

Total stockholders' equity was $824.4 million at September 30, 2021, an increase of $7.3 million from $817.1 million at June 30, 2021. The increase was primarily due to an increase in retained earnings, offset by a decrease in the fair value of available-for-sale securities, and repurchases of common stock.

Under its stock repurchase program the Company repurchased an aggregate of 460,220 shares at an average price per share of $22.62 during the third quarter, and 1,331,708 shares at an average price of $21.68 year-to-date.

The following table presents actual regulatory capital dollar amounts and ratios of the Company and Byline Banks of September 30, 2021:

Minimum Capital Required to be Actual Required Considered Well Capitalized

September Amount Ratio Amount Ratio Amount Ratio30, 2021

Totalcapitalto risk weightedassets:

Company $ 821,646 14.78 % $ 444,596 8.00 % N/A N/A

Bank 747,862 13.50 % 443,176 8.00 % $ 553,971 10.00 %

Tier 1capitalto risk weightedassets:

Company $ 684,523 12.32 % $ 333,447 6.00 % N/A N/A

Bank $ 685,739 12.38 % 332,382 6.00 % $ 443,176 8.00 %

CommonEquityTier 1(CET1) to riskweightedassets:

Company $ 629,085 11.32 % $ 250,085 4.50 % N/A N/A

Bank 685,739 12.38 % 249,287 4.50 % $ 360,081 6.50 %

Tier 1capitalto averageassets:

Company $ 684,523 11.21 % $ 244,268 4.00 % N/A N/A

Bank 685,739 11.24 % 244,138 4.00 % $ 305,173 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, October 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 (844) 200-6205; passcode 611698. A recorded replay can be accessed through November 12, 2021 by dialing (866) 813-9403; passcode: 960656.

A slide presentation relating to our third 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 $6.7 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 September 30, June 30, March 31, December 31, September 30,thousands) 2021 2021 2021 2020 2020

ASSETS

Cash and due from $ 46,900 $ 50,558 $ 47,101 $ 41,432 $ 47,433 banks

Interest bearingdeposits with other 95,978 52,138 66,038 41,988 53,645 banks

Cash and cash 142,878 102,696 113,139 83,420 101,078 equivalents

Equity and othersecurities, at fair 10,299 10,575 8,557 8,764 8,335 value

Securitiesavailable-for-sale, 1,427,605 1,495,789 1,675,907 1,447,230 1,509,211 at fair value

Securitiesheld-to-maturity, at 3,887 3,890 3,892 4,395 4,400 amortized cost

Restricted stock, at 15,927 11,927 19,057 10,507 9,652 cost

Loans held for sale 48,372 25,046 28,584 7,924 49,049

Loans and leases:

Loans and leases 4,609,228 4,469,457 4,454,620 4,340,535 4,374,517

Allowance for loan (60,598 ) (61,719 ) (65,590 ) (66,347 ) (61,258 )and lease losses

Net loans and leases 4,548,630 4,407,738 4,389,030 4,274,188 4,313,259

Servicing assets, at 23,597 24,683 22,140 22,042 21,267 fair value

Premises and 76,995 80,482 85,182 86,728 94,638 equipment, net

Other real estate 3,033 4,417 5,952 6,350 8,150 owned, net

Goodwill and otherintangible assets, 167,296 169,034 170,882 172,631 174,523 net

Bank-owned life 60,992 60,628 60,258 10,009 9,952 insurance

Deferred tax assets, 45,165 43,127 48,662 40,181 35,945 net

Accrued interestreceivable and other 129,775 100,570 118,883 216,283 157,054 assets

Total assets $ 6,704,451 $ 6,540,602 $ 6,750,125 $ 6,390,652 $ 6,496,513

LIABILITIES AND STOCKHOLDERS' EQUITY

LIABILITIES

Non-interest-bearing $ 2,117,749 $ 2,089,455 $ 2,015,643 $ 1,762,676 $ 1,718,682 demand deposits

Interest-bearing 3,040,529 3,002,740 3,008,897 2,989,355 3,091,563 deposits

Total deposits 5,158,278 5,092,195 5,024,540 4,752,031 4,810,245

Other borrowings 539,119 446,836 749,719 647,901 710,560

Subordinated notes, 73,473 73,429 73,386 73,342 73,299 net

Junior subordinateddebentures issued to 36,796 36,682 36,565 36,451 36,331 capital trusts, net

Accrued expenses and 72,367 74,387 72,120 75,463 71,382 other liabilities

Total liabilities 5,880,033 5,723,529 5,956,330 5,585,188 5,701,817

STOCKHOLDERS' EQUITY

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

Common stock 386 385 385 384 383

Additional paid-in 592,192 590,422 589,209 587,165 586,057 capital

Retained earnings 258,077 236,363 210,385 191,098 180,162

Treasury stock (31,161 ) (20,712 ) (8,275 ) (1,668 ) (1,668 )

Accumulated othercomprehensive income (5,514 ) 177 (8,347 ) 18,047 19,324 (loss), net of tax

Total stockholders' 824,418 817,073 793,795 805,464 794,696 equity

Total liabilitiesand stockholders' $ 6,704,451 $ 6,540,602 $ 6,750,125 $ 6,390,652 $ 6,496,513 equity

BYLINE BANCORP, INC. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF OPERATIONS (unaudited)

Three Months Ended

Nine Months Ended

(dollars in thousands, except per share data)

September 30,2021

June 30,2021

March 31,2021

December 31,2020

September 30,2020

September 30,2021

September 30,2020

INTEREST AND DIVIDEND INCOME

Interest and fees on loans and leases

$

56,291

$

54,324

$

53,808

$

53,441

$

51,036

$

164,423

$

155,347

Interest on securities

5,534

6,359

6,089

6,252

7,070

17,982

22,616

Other interest and dividend income

947

628

262

232

128

1,837

1,342

Total interest and dividend income

62,772

61,311

60,159

59,925

58,234

184,242

179,305

INTEREST EXPENSE

Deposits

986

1,058

1,421

1,814

2,760

3,465

14,810

Other borrowings

349

482

502

480

465

1,333

2,838

Subordinated notes and debentures

1,592

1,597

1,596

1,611

1,485

4,785

2,699

Total interest expense

2,927

3,137

3,519

3,905

4,710

9,583

20,347

Net interest income

59,845

58,174

56,640

56,020

53,524

174,659

158,958

PROVISION/(RECAPTURE) FOR LOAN AND LEASE LOSSES

352

(1,969

)

4,367

10,236

15,740

2,750

45,713

Net interest income after provision/(recapture) for loan and lease losses

59,493

60,143

52,273

45,784

37,784

171,909

113,245

NON-INTEREST INCOME

Fees and service charges on deposits

1,867

1,768

1,664

1,740

1,603

5,299

4,731

Loan servicing revenue

3,344

3,188

2,769

2,645

2,936

9,301

8,674

Loan servicing asset revaluation

(2,650

)

7

(1,505

)

(2,298

)

1,122

(4,148

)

(2,653

)

ATM and interchange fees

1,201

1,044

1,012

1,076

1,028

3,257

3,089

Net realized gains (losses) on securities available-for-sale

130

(136

)

1,462

2,889

1,037

1,456

2,412

Change in fair value of equity securities, net

(275

)

517

(206

)

428

154

36

301

Net gains on sales of loans

12,761

12,270

8,319

9,449

12,671

33,350

23,900

Wealth management and trust income

815

722

768

710

693

2,305

1,970

Other non-interest income

1,302

1,622

1,459

1,051

990

4,383

1,946

Total non-interest income

18,495

21,002

15,742

17,690

22,234

55,239

44,370

NON-INTEREST EXPENSE

Salaries and employee benefits

25,978

24,588

21,806

22,559

23,126

72,372

67,197

Occupancy and equipment expense, net

4,982

4,856

5,779

6,854

5,220

15,617

16,103

Loan and lease related expenses

1,175

1,503

951

1,324

2,053

3,629

4,631

Legal, audit, and other professional fees

2,710

2,898

2,214

1,336

2,390

7,822

6,802

Data processing

3,108

2,847

2,755

2,748

2,661

8,710

8,152

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

42

389

621

495

349

1,052

1,324

Other intangible assets amortization expense

1,738

1,848

1,749

1,892

1,947

5,335

5,732

Other non-interest expense

4,447

4,052

2,967

9,813

3,941

11,466

12,460

Total non-interest expense

44,180

42,981

38,842

47,021

41,687

126,003

122,401

INCOME BEFORE PROVISION FOR INCOME TAXES

33,808

38,164

29,173

16,453

18,331

101,145

35,214

PROVISION FOR INCOME TAXES

8,502

9,672

7,375

4,162

5,260

25,549

10,038

NET INCOME

25,306

28,492

21,798

12,291

13,071

75,596

25,176

Dividends on preferred shares

196

195

196

196

196

587

587

INCOME AVAILABLE TO COMMON STOCKHOLDERS

$

25,110

$

28,297

$

21,602

$

12,095

$

12,875

$

75,009

$

24,589

EARNINGS PER COMMON SHARE

Basic

$

0.68

$

0.75

$

0.57

$

0.32

$

0.34

$

1.99

$

0.65

Diluted

$

0.66

$

0.73

$

0.56

$

0.31

$

0.34

$

1.95

$

0.64

BYLINE BANCORP, INC. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF OPERATIONS (unaudited)

Three Months Ended Nine Months Ended

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

INTEREST AND DIVIDEND INCOME

Interest and feeson loans and $ 56,291 $ 54,324 $ 53,808 $ 53,441 $ 51,036 $ 164,423 $ 155,347 leases

Interest on 5,534 6,359 6,089 6,252 7,070 17,982 22,616 securities

Other interest and 947 628 262 232 128 1,837 1,342 dividend income

Total interest and 62,772 61,311 60,159 59,925 58,234 184,242 179,305 dividend income

INTEREST EXPENSE

Deposits 986 1,058 1,421 1,814 2,760 3,465 14,810

Other borrowings 349 482 502 480 465 1,333 2,838

Subordinated notes 1,592 1,597 1,596 1,611 1,485 4,785 2,699 and debentures

Total interest 2,927 3,137 3,519 3,905 4,710 9,583 20,347 expense

Net interest 59,845 58,174 56,640 56,020 53,524 174,659 158,958 income

PROVISION/(RECAPTURE) FOR 352 (1,969 ) 4,367 10,236 15,740 2,750 45,713 LOANAND LEASE LOSSES

Net interestincome afterprovision/ 59,493 60,143 52,273 45,784 37,784 171,909 113,245 (recapture) forloan and leaselosses

NON-INTEREST INCOME

Fees and servicecharges on 1,867 1,768 1,664 1,740 1,603 5,299 4,731 deposits

Loan servicing 3,344 3,188 2,769 2,645 2,936 9,301 8,674 revenue

Loan servicing (2,650 ) 7 (1,505 ) (2,298 ) 1,122 (4,148 ) (2,653 )asset revaluation

ATM and 1,201 1,044 1,012 1,076 1,028 3,257 3,089 interchange fees

Net realized gains(losses) on 130 (136 ) 1,462 2,889 1,037 1,456 2,412 securitiesavailable-for-sale

Change in fairvalue of equity (275 ) 517 (206 ) 428 154 36 301 securities,net

Net gains on sales 12,761 12,270 8,319 9,449 12,671 33,350 23,900 of loans

Wealth management 815 722 768 710 693 2,305 1,970 and trust income

Other non-interest 1,302 1,622 1,459 1,051 990 4,383 1,946 income

Total non-interest 18,495 21,002 15,742 17,690 22,234 55,239 44,370 income

NON-INTEREST EXPENSE

Salaries and 25,978 24,588 21,806 22,559 23,126 72,372 67,197 employee benefits

Occupancy andequipment expense, 4,982 4,856 5,779 6,854 5,220 15,617 16,103 net

Loan and lease 1,175 1,503 951 1,324 2,053 3,629 4,631 related expenses

Legal, audit, andother professional 2,710 2,898 2,214 1,336 2,390 7,822 6,802 fees

Data processing 3,108 2,847 2,755 2,748 2,661 8,710 8,152

Net lossrecognized onother real 42 389 621 495 349 1,052 1,324 estate owned andother relatedexpenses

Other intangibleassets 1,738 1,848 1,749 1,892 1,947 5,335 5,732 amortizationexpense

Other non-interest 4,447 4,052 2,967 9,813 3,941 11,466 12,460 expense

Total non-interest 44,180 42,981 38,842 47,021 41,687 126,003 122,401 expense

INCOME BEFOREPROVISION FOR 33,808 38,164 29,173 16,453 18,331 101,145 35,214 INCOMETAXES

PROVISION FOR 8,502 9,672 7,375 4,162 5,260 25,549 10,038 INCOME TAXES

NET INCOME 25,306 28,492 21,798 12,291 13,071 75,596 25,176

Dividends on 196 195 196 196 196 587 587 preferred shares

INCOME AVAILABLETO COMMON $ 25,110 $ 28,297 $ 21,602 $ 12,095 $ 12,875 $ 75,009 $ 24,589 STOCKHOLDERS

EARNINGS PER COMMON SHARE

Basic $ 0.68 $ 0.75 $ 0.57 $ 0.32 $ 0.34 $ 1.99 $ 0.65

Diluted $ 0.66 $ 0.73 $ 0.56 $ 0.31 $ 0.34 $ 1.95 $ 0.64

BYLINE BANCORP, INC. AND SUBSIDIARIES

SELECTED FINANCIAL DATA (unaudited)

As of or For the Three Months Ended

As of or For the Nine Months Ended

(dollars in thousands, except share

September 30,

June 30,

March 31,

December 31,

September 30,

September 30,

September 30,

and per share data)

2021

2021

2021

2020

2020

2021

2020

Common Share Data

Summary of Operations

Net interest income

$

59,845

$

58,174

$

56,640

$

56,020

$

53,524

$

174,659

$

158,958

Provision/(recapture) for loan and lease losses

352

(1,969

)

4,367

10,236

15,740

2,750

45,713

Non-interest income

18,495

21,002

15,742

17,690

22,234

55,239

44,370

Non-interest expense

44,180

42,981

38,842

47,021

41,687

126,003

122,401

Income before provision for income taxes

33,808

38,164

29,173

16,453

18,331

101,145

35,214

Provision for income taxes

8,502

9,672

7,375

4,162

5,260

25,549

10,038

Net income

25,306

28,492

21,798

12,291

13,071

75,596

25,176

Dividends on preferred shares

196

195

196

196

196

587

587

Net income available to common stockholders

$

25,110

$

28,297

$

21,602

$

12,095

$

12,875

$

75,009

$

24,589

Earnings per Common Share

Basic earnings per common share

$

0.68

$

0.75

$

0.57

$

0.32

$

0.34

$

1.99

$

0.65

Diluted earnings per common share

$

0.66

$

0.73

$

0.56

$

0.31

$

0.34

$

1.95

$

0.64

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

$

0.69

$

0.77

$

0.57

$

0.38

$

0.34

$

2.02

$

0.65

Weighted average common shares outstanding (basic)

37,200,778

37,965,658

38,164,201

38,202,665

38,057,350

37,773,350

37,973,694

Weighted average common shares outstanding (diluted)

38,018,301

38,696,036

38,915,482

38,574,129

38,249,335

38,523,112

38,251,963

Common shares outstanding

37,690,087

38,094,972

38,641,851

38,618,054

38,568,916

37,690,087

38,568,916

Cash dividends per common share

$

0.09

$

0.06

$

0.06

$

0.03

$

0.03

$

0.21

$

0.09

Dividend payout ratio on common stock

13.64

%

8.22

%

10.71

%

9.68

%

8.82

%

10.77

%

14.06

%

Tangible book value per common share(1)

$

17.16

$

16.74

$

15.85

$

16.12

$

15.81

$

17.16

$

15.81

Key Ratios and Performance Metrics (annualized where applicable)

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

3.92

%

3.76

%

3.78

%

3.78

%

3.61

%

3.82

%

3.82

%

Average cost of deposits

0.08

%

0.08

%

0.12

%

0.15

%

0.22

%

0.09

%

0.43

%

Efficiency ratio(2)

54.18

%

51.95

%

51.25

%

61.22

%

52.46

%

52.49

%

57.38

%

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

52.35

%

49.50

%

50.41

%

55.77

%

52.42

%

50.76

%

57.01

%

Non-interest expense to average assets

2.67

%

2.57

%

2.39

%

2.92

%

2.59

%

2.54

%

2.70

%

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

2.58

%

2.45

%

2.35

%

2.67

%

2.59

%

2.46

%

2.68

%

Return on average stockholders' equity

12.19

%

14.10

%

10.96

%

6.07

%

6.57

%

12.42

%

4.33

%

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

12.69

%

14.80

%

11.18

%

7.50

%

6.58

%

12.90

%

4.42

%

Return on average assets

1.53

%

1.70

%

1.34

%

0.76

%

0.81

%

1.53

%

0.56

%

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

1.59

%

1.78

%

1.37

%

0.94

%

0.81

%

1.58

%

0.57

%

Non-interest income to total revenues(1)

23.61

%

26.53

%

21.75

%

24.00

%

29.35

%

24.03

%

21.82

%

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

2.07

%

2.16

%

2.06

%

1.66

%

2.12

%

2.10

%

1.79

%

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

2.15

%

2.28

%

2.10

%

1.91

%

2.12

%

2.18

%

1.80

%

Return on average tangible common stockholders' equity(1)

16.22

%

18.87

%

14.86

%

8.61

%

9.39

%

16.66

%

6.51

%

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

16.86

%

19.77

%

15.15

%

10.47

%

9.40

%

17.27

%

6.63

%

Non-interest-bearing deposits to total deposits

41.06

%

41.03

%

40.12

%

37.09

%

35.73

%

41.06

%

35.73

%

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

90.29

%

88.26

%

89.23

%

91.51

%

91.96

%

90.29

%

91.96

%

Deposits to total liabilities

87.73

%

88.97

%

84.36

%

85.08

%

84.36

%

87.73

%

84.36

%

Deposits per branch

$

117,234

$

115,732

$

109,229

$

103,305

$

84,390

$

117,234

$

84,390

Asset Quality Ratios

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

0.75

%

0.79

%

0.83

%

0.95

%

0.99

%

0.75

%

0.99

%

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

1.31

%

1.38

%

1.47

%

1.53

%

1.40

%

1.31

%

1.40

%

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

0.13

%

0.17

%

0.47

%

0.47

%

0.53

%

0.25

%

0.53

%

Acquisition accounting adjustments(4)

$

6,327

$

9,393

$

10,424

$

13,389

$

17,133

$

6,327

$

17,133

Capital Ratios

Common equity to total assets

12.14

%

12.33

%

11.61

%

12.44

%

12.07

%

12.14

%

12.07

%

Tangible common equity to tangible assets(1)

9.89

%

10.01

%

9.31

%

10.01

%

9.64

%

9.89

%

9.64

%

Leverage ratio

11.21

%

10.82

%

10.93

%

11.12

%

10.93

%

11.21

%

10.93

%

Common equity tier 1 capital ratio

11.32

%

11.97

%

12.09

%

12.20

%

12.55

%

11.32

%

12.55

%

Tier 1 capital ratio

12.32

%

13.05

%

13.20

%

13.36

%

13.77

%

12.32

%

13.77

%

Total capital ratio

14.78

%

15.74

%

15.96

%

16.18

%

16.67

%

14.78

%

16.67

%

BYLINE BANCORP, INC. AND SUBSIDIARIES

SELECTED FINANCIAL DATA (unaudited)

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

(dollars inthousands, except September 30, June 30, March 31, December 31, September 30, September 30, September 30,share

and per share data) 2021 2021 2021 2020 2020 2021 2020

Common Share Data

Summary of Operations

Net interest income $ 59,845 $ 58,174 $ 56,640 $ 56,020 $ 53,524 $ 174,659 $ 158,958

Provision/(recapture) for loan 352 (1,969 ) 4,367 10,236 15,740 2,750 45,713 andlease losses

Non-interest income 18,495 21,002 15,742 17,690 22,234 55,239 44,370

Non-interest expense 44,180 42,981 38,842 47,021 41,687 126,003 122,401

Income beforeprovision for 33,808 38,164 29,173 16,453 18,331 101,145 35,214 income taxes

Provision for income 8,502 9,672 7,375 4,162 5,260 25,549 10,038 taxes

Net income 25,306 28,492 21,798 12,291 13,071 75,596 25,176

Dividends on 196 195 196 196 196 587 587 preferred shares

Net income availableto common $ 25,110 $ 28,297 $ 21,602 $ 12,095 $ 12,875 $ 75,009 $ 24,589 stockholders



Earnings per Common Share

Basic earnings per $ 0.68 $ 0.75 $ 0.57 $ 0.32 $ 0.34 $ 1.99 $ 0.65 common share

Diluted earnings per $ 0.66 $ 0.73 $ 0.56 $ 0.31 $ 0.34 $ 1.95 $ 0.64 common share

Adjusted dilutedearnings per common $ 0.69 $ 0.77 $ 0.57 $ 0.38 $ 0.34 $ 2.02 $ 0.65 share^(2)(3)(4)

Weighted averagecommon shares 37,200,778 37,965,658 38,164,201 38,202,665 38,057,350 37,773,350 37,973,694 outstanding (basic)

Weighted averagecommon shares 38,018,301 38,696,036 38,915,482 38,574,129 38,249,335 38,523,112 38,251,963 outstanding(diluted)

Common shares 37,690,087 38,094,972 38,641,851 38,618,054 38,568,916 37,690,087 38,568,916 outstanding

Cash dividends per $ 0.09 $ 0.06 $ 0.06 $ 0.03 $ 0.03 $ 0.21 $ 0.09 common share

Dividend payoutratio on 13.64 % 8.22 % 10.71 % 9.68 % 8.82 % 10.77 % 14.06 %common stock

Tangible book valueper $ 17.16 $ 16.74 $ 15.85 $ 16.12 $ 15.81 $ 17.16 $ 15.81 common share^(1)



Key Ratios andPerformance Metrics (annualized whereapplicable)

Net interest margin,fully taxable 3.92 % 3.76 % 3.78 % 3.78 % 3.61 % 3.82 % 3.82 %equivalent ^(1)(5)

Average cost of 0.08 % 0.08 % 0.12 % 0.15 % 0.22 % 0.09 % 0.43 %deposits

Efficiency ratio^(2) 54.18 % 51.95 % 51.25 % 61.22 % 52.46 % 52.49 % 57.38 %

Adjusted efficiency 52.35 % 49.50 % 50.41 % 55.77 % 52.42 % 50.76 % 57.01 %ratio^(1)(2)(3)

Non-interest expense 2.67 % 2.57 % 2.39 % 2.92 % 2.59 % 2.54 % 2.70 %to average assets

Adjustednon-interest expenseto 2.58 % 2.45 % 2.35 % 2.67 % 2.59 % 2.46 % 2.68 %average assets^(1)(3)

Return on average 12.19 % 14.10 % 10.96 % 6.07 % 6.57 % 12.42 % 4.33 %stockholders' equity

Adjusted return onaverage 12.69 % 14.80 % 11.18 % 7.50 % 6.58 % 12.90 % 4.42 %stockholders' equity^(1)(3)(4)

Return on average 1.53 % 1.70 % 1.34 % 0.76 % 0.81 % 1.53 % 0.56 %assets

Adjusted return onaverage assets^(1) 1.59 % 1.78 % 1.37 % 0.94 % 0.81 % 1.58 % 0.57 %(3)(4)

Non-interest incometo total 23.61 % 26.53 % 21.75 % 24.00 % 29.35 % 24.03 % 21.82 %revenues^(1)

Pre-taxpre-provision return 2.07 % 2.16 % 2.06 % 1.66 % 2.12 % 2.10 % 1.79 %onaverage assets^(1)

Adjusted pre-taxpre-provision return 2.15 % 2.28 % 2.10 % 1.91 % 2.12 % 2.18 % 1.80 %on average assets^(1)(3)

Return on averagetangible common 16.22 % 18.87 % 14.86 % 8.61 % 9.39 % 16.66 % 6.51 %stockholders' equity^(1)

Adjusted return onaverage tangible 16.86 % 19.77 % 15.15 % 10.47 % 9.40 % 17.27 % 6.63 %common stockholders'equity^(1)(3)

Non-interest-bearingdeposits to 41.06 % 41.03 % 40.12 % 37.09 % 35.73 % 41.06 % 35.73 %total deposits

Loans and leasesheld for sale andloans and lease held 90.29 % 88.26 % 89.23 % 91.51 % 91.96 % 90.29 % 91.96 %forinvestment to totaldeposits

Deposits to total 87.73 % 88.97 % 84.36 % 85.08 % 84.36 % 87.73 % 84.36 %liabilities

Deposits per branch $ 117,234 $ 115,732 $ 109,229 $ 103,305 $ 84,390 $ 117,234 $ 84,390



Asset Quality Ratios

Non-performing loansand leases tototal loans and 0.75 % 0.79 % 0.83 % 0.95 % 0.99 % 0.75 % 0.99 %leases held forinvestment, netbefore ALLL

ALLL to total loansand leases held for 1.31 % 1.38 % 1.47 % 1.53 % 1.40 % 1.31 % 1.40 %investment, netbefore ALLL

Net charge-offs toaverage total loansand leases held for 0.13 % 0.17 % 0.47 % 0.47 % 0.53 % 0.25 % 0.53 %investment,net before ALLL

Acquisitionaccounting $ 6,327 $ 9,393 $ 10,424 $ 13,389 $ 17,133 $ 6,327 $ 17,133 adjustments^(4)



Capital Ratios

Common equity to 12.14 % 12.33 % 11.61 % 12.44 % 12.07 % 12.14 % 12.07 %total assets

Tangible commonequity to 9.89 % 10.01 % 9.31 % 10.01 % 9.64 % 9.89 % 9.64 %tangible assets^(1)

Leverage ratio 11.21 % 10.82 % 10.93 % 11.12 % 10.93 % 11.21 % 10.93 %

Common equity tier 1 11.32 % 11.97 % 12.09 % 12.20 % 12.55 % 11.32 % 12.55 %capital ratio

Tier 1 capital ratio 12.32 % 13.05 % 13.20 % 13.36 % 13.77 % 12.32 % 13.77 %

Total capital ratio 14.78 % 15.74 % 15.96 % 16.18 % 16.67 % 14.78 % 16.67 %

(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 September 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

$

40,088

$

19

0.19

%

$

48,678

$

25

0.20

%

Loans and leases(1)

4,539,111

56,291

4.92

%

4,360,203

51,036

4.66

%

Taxable securities

1,309,802

5,472

1.66

%

1,364,516

6,341

1.85

%

Tax-exempt securities(2)

187,064

1,254

2.66

%

143,157

1,054

2.93

%

Total interest-earning assets

$

6,076,065

$

63,036

4.12

%

$

5,916,554

$

58,456

3.93

%

Allowance for loan and lease losses

(61,528

)

(53,964

)

All other assets

546,331

538,700

TOTAL ASSETS

$

6,560,868

$

6,401,290

LIABILITIES AND STOCKHOLDERS' EQUITY

Deposits

Interest checking

$

653,543

$

228

0.14

%

$

565,917

$

226

0.16

%

Money market accounts

1,031,009

280

0.11

%

1,202,016

634

0.21

%

Savings

625,037

75

0.05

%

535,396

64

0.05

%

Time deposits

709,805

403

0.23

%

870,228

1,836

0.84

%

Total interest-bearing deposits

3,019,394

986

0.13

%

3,173,557

2,760

0.35

%

Other borrowings

426,284

349

0.33

%

538,237

465

0.34

%

Subordinated notes and debentures

110,195

1,592

5.73

%

100,756

1,485

5.86

%

Total borrowings

536,479

1,941

1.44

%

638,993

1,950

1.21

%

Total interest-bearing liabilities

$

3,555,873

$

2,927

0.33

%

$

3,812,549

$

4,710

0.49

%

Non-interest-bearing demand deposits

2,106,189

1,742,787

Other liabilities

75,052

54,844

Total stockholders' equity

823,754

791,111

TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY

$

6,560,868

$

6,401,290

Net interest spread(3)

3.79

%

3.44%

Net interest income, fully taxable equivalent

$

60,109

$

53,746

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

3.92

%

3.61

%

Tax-equivalent adjustment

(264

)

0.01

%

(222

)

0.01

%

Net interest income

$

59,845

$

53,524

Net interest margin(4)

3.91

%

3.60

%

Net loan accretion impact on margin

$

1,638

0.11

%

$

3,911

0.26

%

BYLINE BANCORP, INC. AND SUBSIDIARIES

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

(unaudited)

For the Three Months Ended September 30,

2021 2020

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

ASSETS

Cash and cash equivalents $ 40,088 $ 19 0.19 % $ 48,678 $ 25 0.20 %

Loans and leases^(1) 4,539,111 56,291 4.92 % 4,360,203 51,036 4.66 %

Taxable securities 1,309,802 5,472 1.66 % 1,364,516 6,341 1.85 %

Tax-exempt securities^(2) 187,064 1,254 2.66 % 143,157 1,054 2.93 %

Total interest-earning $ 6,076,065 $ 63,036 4.12 % $ 5,916,554 $ 58,456 3.93 %assets

Allowance for loan and lease (61,528 ) (53,964 ) losses

All other assets 546,331 538,700

TOTAL ASSETS $ 6,560,868 $ 6,401,290

LIABILITIES ANDSTOCKHOLDERS' EQUITY

Deposits

Interest checking $ 653,543 $ 228 0.14 % $ 565,917 $ 226 0.16 %

Money market accounts 1,031,009 280 0.11 % 1,202,016 634 0.21 %

Savings 625,037 75 0.05 % 535,396 64 0.05 %

Time deposits 709,805 403 0.23 % 870,228 1,836 0.84 %

Total interest-bearing 3,019,394 986 0.13 % 3,173,557 2,760 0.35 %deposits

Other borrowings 426,284 349 0.33 % 538,237 465 0.34 %

Subordinated notes and 110,195 1,592 5.73 % 100,756 1,485 5.86 %debentures

Total borrowings 536,479 1,941 1.44 % 638,993 1,950 1.21 %

Total interest-bearing $ 3,555,873 $ 2,927 0.33 % $ 3,812,549 $ 4,710 0.49 %liabilities

Non-interest-bearing demand 2,106,189 1,742,787 deposits

Other liabilities 75,052 54,844

Total stockholders' equity 823,754 791,111

TOTAL LIABILITIES AND $ 6,560,868 $ 6,401,290 STOCKHOLDERS' EQUITY

Net interest spread^(3) 3.79 % 3.44%

Net interest income, fully $ 60,109 $ 53,746 taxable equivalent

Net interest margin, fully 3.92 % 3.61 %taxable equivalent^(2)(4)

Tax-equivalent adjustment (264 ) 0.01 % (222 ) 0.01 %

Net interest income $ 59,845 $ 53,524

Net interest margin^(4) 3.91 % 3.60 %



Net loan accretion impact on $ 1,638 0.11 % $ 3,911 0.26 %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 Nine Months Ended September 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

$

56,926

$

75

0.18

%

$

48,861

$

207

0.57

%

Loans and leases(1)

4,487,909

164,423

4.90

%

4,148,465

155,347

5.00

%

Taxable securities

1,405,390

16,798

1.60

%

1,261,458

21,678

2.30

%

Tax-exempt securities(2)

184,826

3,729

2.70

%

115,161

2,625

3.04

%

Total interest-earning assets

$

6,135,051

$

185,025

4.03

%

$

5,573,945

$

179,857

4.31

%

Allowance for loan and lease losses

(64,768

)

(43,584

)

All other assets

552,660

522,321

TOTAL ASSETS

$

6,622,943

$

6,052,682

LIABILITIES AND STOCKHOLDERS' EQUITY

Deposits

Interest checking

$

609,444

$

647

0.14

%

$

432,785

$

651

0.20

%

Money market accounts

1,068,770

940

0.12

%

1,126,588

3,794

0.45

%

Savings

603,366

214

0.05

%

509,001

186

0.05

%

Time deposits

734,708

1,664

0.30

%

986,419

10,179

1.38

%

Total interest-bearing deposits

3,016,288

3,465

0.15

%

3,054,793

14,810

0.81

%

Other borrowings

572,018

1,333

0.31

%

531,395

2,838

0.71

%

Subordinated notes and debentures

110,029

4,785

5.81

%

59,591

2,699

6.05

%

Total borrowings

682,047

6,118

1.20

%

590,986

5,537

1.25

%

Total interest-bearing liabilities

$

3,698,335

$

9,583

0.35

%

$

3,645,779

$

20,347

0.75

%

Non-interest-bearing demand deposits

2,039,242

1,578,704

Other liabilities

71,737

50,677

Total stockholders' equity

813,629

777,522

TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY

$

6,622,943

$

6,052,682

Net interest spread(3)

3.68

%

3.56

%

Net interest income, fully taxable equivalent

$

175,442

$

159,510

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

3.82

%

3.82

%

Tax-equivalent adjustment

(783

)

0.01

%

(552

)

0.01

%

Net interest income

$

174,659

$

158,958

Net interest margin(4)

3.81

%

3.81

%

Net loan accretion impact on margin

$

5,001

0.11

%

$

10,754

0.26

%

BYLINE BANCORP, INC. AND SUBSIDIARIES

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

(unaudited)

For the Nine Months Ended September 30,

2021 2020

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

ASSETS

Cash and cash equivalents $ 56,926 $ 75 0.18 % $ 48,861 $ 207 0.57 %

Loans and leases^(1) 4,487,909 164,423 4.90 % 4,148,465 155,347 5.00 %

Taxable securities 1,405,390 16,798 1.60 % 1,261,458 21,678 2.30 %

Tax-exempt securities^(2) 184,826 3,729 2.70 % 115,161 2,625 3.04 %

Total interest-earning $ 6,135,051 $ 185,025 4.03 % $ 5,573,945 $ 179,857 4.31 %assets

Allowance for loan and lease (64,768 ) (43,584 ) losses

All other assets 552,660 522,321

TOTAL ASSETS $ 6,622,943 $ 6,052,682

LIABILITIES ANDSTOCKHOLDERS' EQUITY

Deposits

Interest checking $ 609,444 $ 647 0.14 % $ 432,785 $ 651 0.20 %

Money market accounts 1,068,770 940 0.12 % 1,126,588 3,794 0.45 %

Savings 603,366 214 0.05 % 509,001 186 0.05 %

Time deposits 734,708 1,664 0.30 % 986,419 10,179 1.38 %

Total interest-bearing 3,016,288 3,465 0.15 % 3,054,793 14,810 0.81 %deposits

Other borrowings 572,018 1,333 0.31 % 531,395 2,838 0.71 %

Subordinated notes and 110,029 4,785 5.81 % 59,591 2,699 6.05 %debentures

Total borrowings 682,047 6,118 1.20 % 590,986 5,537 1.25 %

Total interest-bearing $ 3,698,335 $ 9,583 0.35 % $ 3,645,779 $ 20,347 0.75 %liabilities

Non-interest-bearing demand 2,039,242 1,578,704 deposits

Other liabilities 71,737 50,677

Total stockholders' equity 813,629 777,522

TOTAL LIABILITIES AND $ 6,622,943 $ 6,052,682 STOCKHOLDERS' EQUITY

Net interest spread^(3) 3.68 % 3.56 %

Net interest income, fully $ 175,442 $ 159,510 taxable equivalent

Net interest margin, fully 3.82 % 3.82 %taxable equivalent^(2)(4)

Tax-equivalent adjustment (783 ) 0.01 % (552 ) 0.01 %

Net interest income $ 174,659 $ 158,958

Net interest margin^(4) 3.81 % 3.81 %



Net loan accretion impact on $ 5,001 0.11 % $ 10,754 0.26 %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.

BYLINE BANCORP, INC. AND SUBSIDIARIESRECONCILIATION 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.

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 SUBSIDIARIESRECONCILIATION 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 Nine Months Ended

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

Net incomeandearningsper share excludingsignificantitems

Reported $ 25,306 $ 28,492 $ 21,798 $ 12,291 $ 13,071 $ 75,596 $ 25,176 Net Income

Significant items:

Impairmentcharges on 1,435 1,942 604 4,022 32 3,981 747 assets heldfor sale

Tax benefit (391 ) (529 ) (165 ) (1,120 ) (9 ) (1,085 ) (208 )

Adjusted $ 26,350 $ 29,905 $ 22,237 $ 15,193 $ 13,094 $ 78,492 $ 25,715 Net Income

ReportedDiluted $ 0.66 $ 0.73 $ 0.56 $ 0.31 $ 0.34 $ 1.95 $ 0.64 Earningsper Share

Significant items:

Impairmentcharges on 0.04 0.05 0.02 0.10 - 0.10 0.02 assets heldfor sale

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

Adjusted Diluted $ 0.69 $ 0.77 $ 0.57 $ 0.38 $ 0.34 $ 2.02 $ 0.65Earnings 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 Nine Months Ended

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

September 30,2021

June 30,2021

March 31,2021

December 31,2020

September 30,2020

September 30,2021

September 30,2020

Adjusted non-interest expense:

Non-interest expense

$

44,180

$

42,981

$

38,842

$

47,021

$

41,687

$

126,003

$

122,401

Less: Significant items

Impairment charges on assets held for sale

1,435

1,942

604

4,022

32

3,981

747

Adjusted non-interest expense

$

42,745

$

41,039

$

38,238

$

42,999

$

41,655

$

122,022

$

121,654

Adjusted non-interest expense excluding amortization of intangible assets:

Adjusted non-interest expense

$

42,745

$

41,039

$

38,238

$

42,999

$

41,655

$

122,022

$

121,654

Less: Amortization of intangible assets

1,738

1,848

1,749

1,892

1,947

5,335

5,732

Adjusted non-interest expense excluding amortization of intangible assets

$

41,007

$

39,191

$

36,489

$

41,107

$

39,708

$

116,687

$

115,922

Pre-tax pre-provision net income:

Pre-tax income

$

33,808

$

38,164

$

29,173

$

16,453

$

18,331

$

101,145

$

35,214

Add: Provision/(recapture) for loan and lease losses

352

(1,969

)

4,367

10,236

15,740

2,750

45,713

Pre-tax pre-provision net income

$

34,160

$

36,195

$

33,540

$

26,689

$

34,071

$

103,895

$

80,927

Adjusted pre-tax pre-provision net income:

Pre-tax pre-provision net income

$

34,160

$

36,195

$

33,540

$

26,689

$

34,071

$

103,895

$

80,927

Impairment charges on assets held for sale

1,435

1,942

604

4,022

32

3,981

747

Adjusted pre-tax pre-provision net income

$

35,595

$

38,137

$

34,144

$

30,711

$

34,103

$

107,876

$

81,674

Tax equivalent net interest income

Net interest income

$

59,845

$

58,174

$

56,640

$

56,020

$

53,524

$

174,659

$

158,958

Add: Tax-equivalent adjustment

264

269

250

240

222

783

552

Net interest income, fully taxable equivalent

$

60,109

$

58,443

$

56,890

$

56,260

$

53,746

$

175,442

$

159,510

Total revenues:

Net interest income

$

59,845

$

58,174

$

56,640

$

56,020

$

53,524

$

174,659

$

158,958

Add: Non-interest income

18,495

21,002

15,742

17,690

22,234

55,239

44,370

Total revenues

$

78,340

$

79,176

$

72,382

$

73,710

$

75,758

$

229,898

$

203,328

Tangible common stockholders' equity:

Total stockholders' equity

$

824,418

$

817,073

$

793,795

$

805,464

$

794,696

$

824,418

$

794,696

Less: Preferred stock

10,438

10,438

10,438

10,438

10,438

10,438

10,438

Less: Goodwill and other intangibles

167,296

169,034

170,882

172,631

174,523

167,296

174,523

Tangible common stockholders' equity

$

646,684

$

637,601

$

612,475

$

622,395

$

609,735

$

646,684

$

609,735

Tangible assets:

Total assets

$

6,704,451

$

6,540,602

$

6,750,125

$

6,390,652

$

6,496,513

$

6,704,451

$

6,496,513

Less: Goodwill and other intangibles

167,296

169,034

170,882

172,631

174,523

167,296

174,523

Tangible assets

$

6,537,155

$

6,371,568

$

6,579,243

$

6,218,021

$

6,321,990

$

6,537,155

$

6,321,990

Average tangible common stockholders' equity:

Average total stockholders' equity

$

823,754

$

810,490

$

806,452

$

805,593

$

791,111

$

813,629

$

777,522

Less: Average preferred stock

10,438

10,438

10,438

10,438

10,438

10,438

10,438

Less: Average goodwill and other intangibles

168,140

169,906

171,795

173,536

175,443

169,934

177,426

Average tangible common stockholders' equity

$

645,176

$

630,146

$

624,219

$

621,619

$

605,230

$

633,257

$

589,658

Average tangible assets:

Average total assets

$

6,560,868

$

6,720,492

$

6,587,765

$

6,400,621

$

6,401,290

$

6,622,943

$

6,052,682

Less: Average goodwill and other intangibles

168,140

169,906

171,795

173,536

175,443

169,934

177,426

Average tangible assets

$

6,392,728

$

6,550,586

$

6,415,970

$

6,227,085

$

6,225,847

$

6,453,009

$

5,875,256

Tangible net income available to common stockholders:

Net income available to common stockholders

$

25,110

$

28,297

$

21,602

$

12,095

$

12,875

$

75,009

$

24,589

Add: After-tax intangible asset amortization

1,265

1,344

1,272

1,365

1,405

3,881

4,136

Tangible net income available to common stockholders

$

26,375

$

29,641

$

22,874

$

13,460

$

14,280

$

78,890

$

28,725

Adjusted tangible net income available to common stockholders:

Tangible net income available to common stockholders

$

26,375

$

29,641

$

22,874

$

13,460

$

14,280

$

78,890

$

28,725

Impairment charges on assets held for sale

1,435

1,942

604

4,022

32

3,981

747

Tax benefit on significant items

(391

)

(529

)

(165

)

(1,120

)

(9

)

(1,085

)

(208

)

Adjusted tangible net income available to common stockholders

$

27,419

$

31,054

$

23,313

$

16,362

$

14,303

$

81,786

$

29,264

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 Nine Months Ended

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

Adjustednon-interest expense:

Non-interest $ 44,180 $ 42,981 $ 38,842 $ 47,021 $ 41,687 $ 126,003 $ 122,401 expense

Less:Significant items

Impairmentcharges on 1,435 1,942 604 4,022 32 3,981 747 assets heldfor sale

Adjustednon-interest $ 42,745 $ 41,039 $ 38,238 $ 42,999 $ 41,655 $ 122,022 $ 121,654 expense

Adjustednon-interestexpenseexcluding amortizationof intangibleassets:

Adjustednon-interest $ 42,745 $ 41,039 $ 38,238 $ 42,999 $ 41,655 $ 122,022 $ 121,654 expense

Less:Amortization 1,738 1,848 1,749 1,892 1,947 5,335 5,732 of intangibleassets

Adjustednon-interestexpenseexcluding $ 41,007 $ 39,191 $ 36,489 $ 41,107 $ 39,708 $ 116,687 $ 115,922 amortizationof intangibleassets

Pre-taxpre-provision net income:

Pre-tax income $ 33,808 $ 38,164 $ 29,173 $ 16,453 $ 18,331 $ 101,145 $ 35,214

Add: Provision/(recapture)for loan 352 (1,969 ) 4,367 10,236 15,740 2,750 45,713 and leaselosses

Pre-taxpre-provision $ 34,160 $ 36,195 $ 33,540 $ 26,689 $ 34,071 $ 103,895 $ 80,927 net income

Adjustedpre-tax pre-provisionnet income:

Pre-taxpre-provision $ 34,160 $ 36,195 $ 33,540 $ 26,689 $ 34,071 $ 103,895 $ 80,927 net income

Impairmentcharges on 1,435 1,942 604 4,022 32 3,981 747 assets heldfor sale

Adjustedpre-tax $ 35,595 $ 38,137 $ 34,144 $ 30,711 $ 34,103 $ 107,876 $ 81,674 pre-provisionnet income

Tax equivalentnet interest income

Net interest $ 59,845 $ 58,174 $ 56,640 $ 56,020 $ 53,524 $ 174,659 $ 158,958 income

Add:Tax-equivalent 264 269 250 240 222 783 552 adjustment

Net interestincome, fully $ 60,109 $ 58,443 $ 56,890 $ 56,260 $ 53,746 $ 175,442 $ 159,510 taxableequivalent

Total revenues:

Net interest $ 59,845 $ 58,174 $ 56,640 $ 56,020 $ 53,524 $ 174,659 $ 158,958 income

Add:Non-interest 18,495 21,002 15,742 17,690 22,234 55,239 44,370 income

Total revenues $ 78,340 $ 79,176 $ 72,382 $ 73,710 $ 75,758 $ 229,898 $ 203,328

Tangiblecommon stockholders'equity:

Totalstockholders' $ 824,418 $ 817,073 $ 793,795 $ 805,464 $ 794,696 $ 824,418 $ 794,696 equity

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

Less: Goodwilland other 167,296 169,034 170,882 172,631 174,523 167,296 174,523 intangibles

Tangiblecommon $ 646,684 $ 637,601 $ 612,475 $ 622,395 $ 609,735 $ 646,684 $ 609,735 stockholders'equity

Tangible assets:

Total assets $ 6,704,451 $ 6,540,602 $ 6,750,125 $ 6,390,652 $ 6,496,513 $ 6,704,451 $ 6,496,513

Less: Goodwilland other 167,296 169,034 170,882 172,631 174,523 167,296 174,523 intangibles

Tangible $ 6,537,155 $ 6,371,568 $ 6,579,243 $ 6,218,021 $ 6,321,990 $ 6,537,155 $ 6,321,990 assets

Averagetangiblecommon stockholders'equity:

Average totalstockholders' $ 823,754 $ 810,490 $ 806,452 $ 805,593 $ 791,111 $ 813,629 $ 777,522 equity

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

Less: Averagegoodwill and 168,140 169,906 171,795 173,536 175,443 169,934 177,426 otherintangibles

Averagetangiblecommon $ 645,176 $ 630,146 $ 624,219 $ 621,619 $ 605,230 $ 633,257 $ 589,658 stockholders'equity

Averagetangible assets:

Average total $ 6,560,868 $ 6,720,492 $ 6,587,765 $ 6,400,621 $ 6,401,290 $ 6,622,943 $ 6,052,682 assets

Less: Averagegoodwill and 168,140 169,906 171,795 173,536 175,443 169,934 177,426 otherintangibles

Averagetangible $ 6,392,728 $ 6,550,586 $ 6,415,970 $ 6,227,085 $ 6,225,847 $ 6,453,009 $ 5,875,256 assets

Tangible netincomeavailable to commonstockholders:

Net incomeavailable to $ 25,110 $ 28,297 $ 21,602 $ 12,095 $ 12,875 $ 75,009 $ 24,589 commonstockholders

Add: After-taxintangible 1,265 1,344 1,272 1,365 1,405 3,881 4,136 assetamortization

Tangible netincomeavailable to $ 26,375 $ 29,641 $ 22,874 $ 13,460 $ 14,280 $ 78,890 $ 28,725 commonstockholders

Adjustedtangible netincome availableto commonstockholders:

Tangible netincomeavailable to $ 26,375 $ 29,641 $ 22,874 $ 13,460 $ 14,280 $ 78,890 $ 28,725 commonstockholders

Impairmentcharges on 1,435 1,942 604 4,022 32 3,981 747 assets heldfor sale

Tax benefit onsignificant (391 ) (529 ) (165 ) (1,120 ) (9 ) (1,085 ) (208 )items

Adjustedtangible netincome $ 27,419 $ 31,054 $ 23,313 $ 16,362 $ 14,303 $ 81,786 $ 29,264 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 Nine Months Ended

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

September 30,2021

June 30,2021

March 31,2021

December 31,2020

September 30,2020

September 30,2021

September 30,2020

Pre-tax pre-provision return on average assets:

Pre-tax pre-provision net income

$

34,160

$

36,195

$

33,540

$

26,689

$

34,071

$

103,895

$

80,927

Average total assets

6,560,868

6,720,492

6,587,765

6,400,621

6,401,290

6,622,943

6,052,682

Pre-tax pre-provision return on average assets

2.07

%

2.16

%

2.06

%

1.66

%

2.12

%

2.10

%

1.79

%

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

Adjusted pre-tax pre-provision net income

$

35,595

$

38,137

$

34,144

$

30,711

$

34,103

$

107,876

$

81,674

Average total assets

6,560,868

6,720,492

6,587,765

6,400,621

6,401,290

6,622,943

6,052,682

Adjusted pre-tax pre-provision return on average assets

2.15

%

2.28

%

2.10

%

1.91

%

2.12

%

2.18

%

1.80

%

Net interest margin, fully taxable equivalent

Net interest income, fully taxable equivalent

$

60,109

$

58,443

$

56,890

$

56,260

$

53,746

$

175,442

$

159,510

Total average interest-earning assets

6,076,065

6,231,616

5,913,746

5,916,554

5,916,554

6,135,051

5,573,945

Net interest margin, fully taxable equivalent

3.92

%

3.76

%

3.78

%

3.78

%

3.61

%

3.82

%

3.82

%

Non-interest income to total revenues:

Non-interest income

$

18,495

$

21,002

$

15,742

$

17,690

$

22,234

$

55,239

$

44,370

Total revenues

78,340

79,176

72,382

73,710

75,758

229,898

203,328

Non-interest income to total revenues

23.61

%

26.53

%

21.75

%

24.00

%

29.35

%

24.03

%

21.82

%

Adjusted non-interest expense to average assets:

Adjusted non-interest expense

$

42,745

$

41,039

$

38,238

$

42,999

$

41,655

$

122,022

$

121,654

Average total assets

6,560,868

6,720,492

6,587,765

6,400,621

6,401,290

6,622,943

6,052,682

Adjusted non-interest expense to average assets

2.58

%

2.45

%

2.35

%

2.67

%

2.59

%

2.46

%

2.68

%

Adjusted efficiency ratio:

Adjusted non-interest expense excluding amortization of intangible assets

$

41,007

$

39,191

$

36,489

$

41,107

$

39,708

$

116,687

$

115,922

Total revenues

78,340

79,176

72,382

73,710

75,758

229,898

203,328

Adjusted efficiency ratio

52.35

%

49.50

%

50.41

%

55.77

%

52.42

%

50.76

%

57.01

%

Adjusted return on average assets:

Adjusted net income

$

26,350

$

29,905

$

22,237

$

15,193

$

13,094

$

78,492

$

25,715

Average total assets

6,560,868

6,720,492

6,587,765

6,400,621

6,401,290

6,622,943

6,052,682

Adjusted return on average assets

1.59

%

1.78

%

1.37

%

0.94

%

0.81

%

1.58

%

0.57

%

Adjusted return on average stockholders' equity:

Adjusted net income

$

26,350

$

29,905

$

22,237

$

15,193

$

13,094

$

78,492

$

25,715

Average stockholders' equity

823,754

810,490

806,452

805,593

791,111

813,629

777,522

Adjusted return on average stockholders' equity

12.69

%

14.80

%

11.18

%

7.50

%

6.58

%

12.90

%

4.42

%

Tangible common equity to tangible assets:

Tangible common equity

$

646,684

$

637,601

$

612,475

$

622,395

$

609,735

$

646,684

$

609,735

Tangible assets

6,537,155

6,371,568

6,579,243

6,218,021

6,321,990

6,537,155

6,321,990

Tangible common equity to tangible assets

9.89

%

10.01

%

9.31

%

10.01

%

9.64

%

9.89

%

9.64

%

Return on average tangible common stockholders' equity:

Tangible net income available to common stockholders

$

26,375

$

29,641

$

22,874

$

13,460

$

14,280

$

78,890

$

28,725

Average tangible common stockholders' equity

645,176

630,146

624,219

621,619

605,230

633,257

589,658

Return on average tangible common stockholders' equity

16.22

%

18.87

%

14.86

%

8.61

%

9.39

%

16.66

%

6.51

%

Adjusted return on average tangible common stockholders' equity:

Adjusted tangible net income available to common stockholders

$

27,419

$

31,054

$

23,313

$

16,362

$

14,303

$

81,786

$

29,264

Average tangible common stockholders' equity

645,176

630,146

624,219

621,619

605,230

633,257

589,658

Adjusted return on average tangible common stockholders' equity

16.86

%

19.77

%

15.15

%

10.47

%

9.40

%

17.27

%

6.63

%

Tangible book value per share:

Tangible common equity

$

646,684

$

637,601

$

612,475

$

622,395

$

609,735

$

646,684

$

609,735

Common shares outstanding

37,690,087

38,094,972

38,641,851

38,618,054

38,568,916

37,690,087

38,568,916

Tangible book value per share

$

17.16

$

16.74

$

15.85

$

16.12

$

15.81

$

17.16

$

15.81

View source version on businesswire.com: https://www.businesswire.com/news/home/20211028006188/en/

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

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