Business Wire | Jan 27, 2022 04:15PM EST

Byline Bancorp, Inc. Reports Full Year and Fourth Quarter 2021 Financial Results

Jan. 27, 2022

CHICAGO--(BUSINESS WIRE)--Jan. 27, 2022--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 $17.2 million, or $0.45 per diluted share, for the fourth quarter of 2021, compared with net income of $25.3 million, or $0.66 per diluted share, for the third quarter of 2021, and net income of $12.3 million, or $0.31 per diluted share, for the fourth quarter 2020. Adjusted net income1 was $26.3 million, or $0.69 per adjusted diluted share, for the fourth quarter of 2021, compared with $26.4 million, or $0.69 per adjusted diluted share1, for the third quarter of 2021, and $15.2 million, or $0.38 per adjusted diluted share, for the fourth quarter of 2020.

Roberto R. Herencia, Executive Chairman and Chief Executive Officer of Byline Bancorp, commented, "A lot has changed in the last year, and our fourth quarter and full year results highlight the value of our diversified business model, which allowed us to deliver strong results for our shareholders. This was an extraordinary year for the Byline franchise that brought both challenges and opportunities. I'm proud of how we came together to support our customers and communities while consistently executing on our strategic plan to drive organic loan and deposit growth resulting in a higher level of profitability. As we look ahead, I'm confident in our ability to create shareholder value as we continue to invest in talent and technology to drive revenue growth and efficiency improvement. We remain well positioned to support our continued growth and I want to thank all our employees for being flexible, for being resilient, and for bringing our core values to life for the benefit of our customers every day."

Alberto J. Paracchini, President of Byline Bancorp, added, "We ended 2021 on a good note as our fourth quarter results were supported by continued strong inflows of commercial non-interest bearing deposits and annualized loan and lease growth of 6.6%, excluding PPP loans. During the quarter we announced the consolidation of six branch locations and the disposition of real estate in efforts to adapt to changes in customer behavior and improve operating efficiencies. During 2021, we returned $40.3 million of capital to shareholders through common dividends and share repurchases. As we moved through the year, we saw a favorable shift in our mix of earning assets and produced record earnings for the company. As we enter this new year in a strong position, we believe we continue to have a healthy loan pipeline and our focus remains on supporting new and existing customers, executing our strategy, and growing the value of our franchise."

Board Approves Redemption of Series B Preferred Stock

On January 25, 2022, the Company's Board of Directors approved the redemption of all of the outstanding shares of the Company's 7.50% fixed-to-floating, noncumulative perpetual preferred stock, Series B ("Series B Preferred Stock"), on March 31, 2022. The Company currently has 10,438 shares of Series B Preferred Stock, with a liquidation of preference of $1,000 per share, plus any declared and unpaid dividends from any prior dividend period.

Board Declares Cash Dividend of $0.09 per Share

On January 25, 2022, the Company's Board of Directors declared a cash dividend of $0.09 per share, payable on February 22, 2022, to stockholders of record of the Company's common stock as of February 8, 2022.

Consolidation of Six Branches and Disposal of Real Estate

On December 10, 2021 Byline announced plans to continue to optimize its branch network, dispose of a portfolio of owned real estate properties and reduce the amount of office square footage it occupies as part of its efforts to adapt to changes in customer behavior and improve operating efficiencies. Byline Bank plans to consolidate six of its 44 full-service branches during the second quarter of 2022. The Company also plans to dispose of a real estate portfolio that includes former branch locations and other properties and reduce the amount of office square footage it occupies to accommodate current trends in remote working preferences. The impact of the branch consolidations and the strategic real estate reduction is expected to result in total charges of approximately $15.0 million, of which $13.0 million were incurred during the fourth quarter 2021, with the remainder to be incurred during the first half of 2022, and expects to generate approximately $5.3 million in annualized cost savings. We expect to reinvest approximately 70% of the anticipated annualized cost savings into talent and technology that will further enhance our digital banking capabilities.

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:

December 31, 2021

Three Months Ended Change from

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

(dollars in 2021 2021 2020 2021 2020thousands)

INTEREST AND DIVIDEND INCOME

Interest and feeson loans and $ 58,570 $ 56,291 $ 53,441 4.0 % 9.6 %leases

Interest on 5,619 5,534 6,252 1.5 % (10.1 )securities %

Other interest and 495 947 232 (47.8 ) 113.2 %dividend income %

Total interest and 64,684 62,772 59,925 3.0 % 7.9 %dividend income

INTEREST EXPENSE

Deposits 1,037 986 1,814 5.2 % (42.8 ) %

Other borrowings 330 349 480 (5.8 ) (31.4 ) % %

Subordinated notes 1,589 1,592 1,611 (0.2 ) (1.4 )and debentures % %

Total interest 2,956 2,927 3,905 1.0 % (24.3 )expense %

Net interest $ 61,728 $ 59,845 $ 56,020 3.1 % 10.2 %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

December 31, 2021 September 30, 2021

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

ASSETS

Cash and cash $ 106,170 $ 42 0.16 % $ 40,088 $ 19 0.19 %equivalents

Loans and leases^(1) 4,610,608 58,570 5.04 % 4,539,111 56,291 4.92 %

Taxable securities 1,288,969 5,111 1.57 % 1,309,802 5,472 1.66 %

Tax-exempt 184,015 1,217 2.62 % 187,064 1,254 2.66 %securities^(2)

Totalinterest-earning $ 6,189,762 $ 64,940 4.16 % $ 6,076,065 $ 63,036 4.12 %assets

Allowance for loan (59,144 ) (61,528 ) and lease losses

All other assets 568,451 546,331

TOTAL ASSETS $ 6,699,069 $ 6,560,868

LIABILITIES AND STOCKHOLDERS' EQUITY

Deposits

Interest checking $ 659,841 $ 236 0.14 % $ 653,543 $ 228 0.14 %

Money market 1,089,398 345 0.13 % 1,031,009 280 0.11 %accounts

Savings 633,469 75 0.05 % 625,037 75 0.05 %

Time deposits 688,154 381 0.22 % 709,805 403 0.23 %

Totalinterest-bearing 3,070,862 1,037 0.13 % 3,019,394 986 0.13 %deposits

Other borrowings 385,787 330 0.34 % 426,284 349 0.33 %

Subordinated notes 110,341 1,589 5.71 % 110,195 1,592 5.73 %and debentures

Total borrowings 496,128 1,919 1.53 % 536,479 1,941 1.44 %

Totalinterest-bearing $ 3,566,990 $ 2,956 0.33 % $ 3,555,873 $ 2,927 0.33 %liabilities

Non-interest-bearing 2,222,583 2,106,189 demand deposits

Other liabilities 70,521 75,052

Total stockholders' 838,975 823,754 equity

TOTAL LIABILITIESAND STOCKHOLDERS' $ 6,699,069 $ 6,560,868 EQUITY

Net interest spread^ 3.83 % 3.79 %(3)

Net interest income,fully taxable $ 61,984 $ 60,109 equivalent

Net interest margin,fully taxable 3.97 % 3.92 %equivalent^(2)(4)

Tax-equivalent (256 ) 0.01 % (264 ) 0.01 %adjustment

Net interest income $ 61,728 $ 59,845

Net interest margin^ 3.96 % 3.91 %(4)



Net loan accretion $ 1,450 0.09 % $ 1,638 0.11 %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 fourth quarter of 2021 was $61.7 million, an increase of $1.9 million, or 3.1%, from the third quarter of 2021.

The increase in net interest income was primarily due to:

* An increase of $2.3 million in interest income on loans and leases, due to higher balances and yields on loans and leases.

Partially offset by:

* A decrease of $452,000 in other interest and dividend income due to lower dividends on equity investments.

Tax-equivalent net interest margin for the fourth quarter of 2021 was 3.97%, an increase of five basis points compared to the third quarter of 2021. Total net accretion income on acquired loans contributed nine basis points to the net interest margin for the fourth quarter of 2021 compared to 11 basis points for the third quarter of 2021, a decrease of two basis points. PPP loan interest income and net fee income combined contributed $4.5 million to net interest income for the fourth quarter of 2021 compared to $5.4 million for the third quarter of 2021.

The average cost of total deposits was 0.08% for the fourth quarter of 2021, flat compared to the third quarter of 2021. Average non-interest-bearing demand deposits increased $116.4 million, while average money market account deposits increased by $58.4 million. Average non-interest-bearing demand deposits were 42.0% of average total deposits for the fourth quarter of 2021 compared to 41.1% during the third quarter of 2021.

Provision for Loan and Lease Losses

The provision for loan and lease losses was a recapture of $1.3 million for the fourth quarter of 2021, a decrease of $1.6 million compared to a provision of $352,000 for the third quarter of 2021. The recapture of provision during the fourth quarter of 2021 was mainly driven by a decrease in non-performing loans and leases, and changes in qualitative factors due to continuing 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 fourth quarter of 2021 was $61.7 million, an increase of $1.9 million, or 3.1%, from the third quarter of 2021.

The increase in net interest income was primarily due to:

* An increase of $2.3 million in interest income on loans and leases, due to higher balances and yields on loans and leases.

Partially offset by:

* A decrease of $452,000 in other interest and dividend income due to lower dividends on equity investments.

Tax-equivalent net interest margin for the fourth quarter of 2021 was 3.97%, an increase of five basis points compared to the third quarter of 2021. Total net accretion income on acquired loans contributed nine basis points to the net interest margin for the fourth quarter of 2021 compared to 11 basis points for the third quarter of 2021, a decrease of two basis points. PPP loan interest income and net fee income combined contributed $4.5 million to net interest income for the fourth quarter of 2021 compared to $5.4 million for the third quarter of 2021.

The average cost of total deposits was 0.08% for the fourth quarter of 2021, flat compared to the third quarter of 2021. Average non-interest-bearing demand deposits increased $116.4 million, while average money market account deposits increased by $58.4 million. Average non-interest-bearing demand deposits were 42.0% of average total deposits for the fourth quarter of 2021 compared to 41.1% during the third quarter of 2021.

Provision for Loan and Lease Losses

The provision for loan and lease losses was a recapture of $1.3 million for the fourth quarter of 2021, a decrease of $1.6 million compared to a provision of $352,000 for the third quarter of 2021. The recapture of provision during the fourth quarter of 2021 was mainly driven by a decrease in non-performing loans and leases, and changes in qualitative factors due to continuing economic improvement.

Non-interest Income

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

Three Months Ended December 31, 2021 Change from

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

(dollars in 2021 2021 2020 2021 2020thousands)

NON-INTEREST INCOME

Fees and servicecharges on $ 1,955 $ 1,867 $ 1,740 4.7 % 12.4 %deposits

Loan servicing 3,392 3,344 2,645 1.4 % 28.2 %revenue

Loan servicing (2,510 ) (2,650 ) (2,298 ) (5.3 ) 9.2 %asset revaluation %

ATM and 1,219 1,201 1,076 1.6 % 13.3 %interchange fees

Net realized gains(losses) on (21 ) 130 2,889 NM NM securitiesavailable-for-sale

Change in fair )value of equity (98 ) (275 ) 428 (64.6 % NM securities, net

Net gains on sales 12,924 12,761 9,449 1.3 % 36.8 %of loans

Wealth management 764 815 710 (6.4 ) 7.5 %and trust income %

Other non-interest 1,389 1,302 1,051 6.7 % 32.1 %income

Total non-interest $ 19,014 $ 18,495 $ 17,690 2.8 % 7.5 %income

Non-interest income for the fourth quarter of 2021 was $19.0 million, an increase of $519,000, or 2.8%, compared to $18.5 million for the third quarter of 2021.

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

* An increase of $178,000 in the fair value of equity securities, net, due to changes in the market value of securities; and * An increase of $162,000 in net gains on sales of loans due to higher volume of loans sold.

Partially offset by:

* A decrease in net realized losses on securities available-for-sale of $152,000 due to sales of securities.

During the fourth quarter of 2021, we sold $113.9 million of U.S. government guaranteed loans compared to $104.2 million during the third quarter of 2021.

Non-interest Expense

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

Three Months Ended December 31, 2021 Change from

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

(dollars in 2021 2021 2020 2021 2020thousands)

NON-INTEREST EXPENSE

Salaries andemployee $ 28,850 $ 25,978 $ 22,559 11.1 % 27.9 %benefits

Occupancy and )equipment 4,995 4,982 6,854 0.3 % (27.1 %expense, net

Loan and lease 2,328 1,175 1,324 98.1 % 75.8 %related expenses

Legal, audit andother 2,376 2,710 1,336 (12.4 ) 77.8 %professional %fees

Data processing 3,070 3,108 2,748 (1.2 ) 11.7 % %

Net lossrecognized onother real 26 42 495 (39.1 ) (94.8 )estate owned and % %other relatedexpenses

Other intangibleassets 1,738 1,738 1,892 - (8.2 )amortization %expense

Othernon-interest 15,585 4,447 9,813 250.6 % 58.8 %expense

Totalnon-interest $ 58,968 $ 44,180 $ 47,021 33.5 % 25.4 %expense

Non-interest expense for the fourth quarter of 2021 was $59.0 million, an increase of $14.8 million, or 33.5%, from $44.2 million for the third quarter of 2021.

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

* An increase of $11.1 million in other non-interest expense mainly due to $8.4 million of impairment charges on assets held for sale and $4.1 million on branch consolidation charges; and * An increase of $2.9 million in salaries and employee benefits mainly related to increases in salary expense of $499,000 with new additional hires, increase of $1.5 million in commissions and incentive expense, and $573,000 related to branch consolidation charges; and * An increase of $1.2 million in loan and lease related expenses mainly related to higher expenses associated with originations of government guaranteed loans.

Our efficiency ratio was 70.88% for the fourth quarter of 2021 compared to 54.18% for the third quarter of 2021. Excluding asset impairment charges, our adjusted efficiency ratio1 was 55.46% for the fourth quarter of 2021, compared with 52.35% for the third quarter of 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.

INCOME TAXES

We recorded income tax expense of $5.9 million during the fourth quarter of 2021, compared to $8.5 million during the third quarter of 2021. The effective tax rate was 25.5% and 25.1% for the fourth quarter and third quarter of 2021, respectively.

STATEMENTS OF FINANCIAL CONDITION

Total assets were $6.7 billion at December 31, 2021, a decrease of $8.3 million compared to $6.7 billion at September 30, 2021.

The current quarter decrease was primarily due to:

* A decrease in net loans and leases of $66.5 million due to PPP forgiveness.

Partially offset by:

* An increase in securities available for sale of $26.9 million due to purchases of securities.

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

December 31, 2021 September 30, 2021 December 31, 2020

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

Originatedloans and leases

Commercial $ 1,379,000 30.4 % $ 1,298,454 28.2 % $ 1,017,587 23.5 %real estate

Residential 379,796 8.4 % 387,578 8.4 % 414,220 9.6 %real estate

Construction,landdevelopment, 323,886 7.1 % 336,460 7.3 % 226,408 5.2 %and otherland

Commercialand 1,534,745 33.8 % 1,480,076 32.1 % 1,276,527 29.4 %industrial

PaycheckProtection 123,712 2.7 % 268,081 5.8 % 517,815 11.9 %Program

Installment 940 0.0 % 998 0.0 % 1,267 0.0 %and other

Leasingfinancing 352,247 7.8 % 331,149 7.2 % 214,636 4.9 %receivables

Totaloriginated $ 4,094,326 90.2 % $ 4,102,796 89.0 % $ 3,668,460 84.5 %loans andleases

Acquiredimpaired loans

Commercial $ 72,160 1.6 % $ 84,821 1.8 % $ 108,484 2.5 %real estate

Residential 49,401 1.1 % 61,893 1.3 % 78,840 1.9 %real estate

Construction,landdevelopment, 1,312 0.0 % 1,746 0.1 % 4,113 0.1 %and otherland

Commercialand 4,014 0.1 % 6,651 0.1 % 10,178 0.2 %industrial

Installment 164 0.0 % 169 0.0 % 202 0.0 %and other

Totalacquired $ 127,051 2.8 % $ 155,280 3.3 % $ 201,817 4.7 %impairedloans

Acquirednon-impaired loans andleases

Commercial $ 214,588 4.7 % $ 235,103 5.1 % $ 295,599 6.8 %real estate

Residential 51,317 1.1 % 58,283 1.3 % 79,211 1.8 %real estate

Construction,landdevelopment, 201 0.1 % 206 0.0 % 212 0.0 %and otherland

Commercialand 43,202 1.0 % 49,678 1.1 % 82,195 1.9 %industrial

Installment 264 0.0 % 275 0.0 % 536 0.0 %and other

Leasingfinancing 6,179 0.1 % 7,607 0.2 % 12,505 0.3 %receivables

Totalacquirednon-impaired $ 315,751 7.0 % $ 351,152 7.7 % $ 470,258 10.8 %loans andleases

Total loans $ 4,537,128 100.0 % $ 4,609,228 100.0 % $ 4,340,535 100.0 %and leases

Allowance forloan and (55,012 ) (60,598 ) (66,347 ) lease losses

Total loansand leases,net of $ 4,482,116 $ 4,548,630 $ 4,274,188 allowance forloan andlease losses

Paycheck Protection Program

The following table presents the net PPP loans outstanding as of December 31, 2021:

PPP Loans Outstanding

(dollars in thousands) First Round Second Total Round

Principal outstanding $ 3,637 $ 123,547 $ 127,184

Unearned processing fee (46 ) (4,303 ) (4,349 )

Deferred cost 11 866 877

PPP loans, net $ 3,602 $ 120,110 $ 123,712

Number of loans outstanding 62 710 772



Forgiven 97.1 % 67.5 % 87.0 %

In review or submission process 0.3 % 7.7 % 2.8 %

Not applied for forgiveness 2.6 % 24.8 % 10.2 %

PPP loans decreased by $144.4 million in the fourth quarter of 2021 primarily as a result of forgiveness of PPP loans. Forgiveness for the fourth quarter 2021 was $160.3 million compared to $202.4 million for the third 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:

December 31, 2021 Change from

(dollars in December September December September Decemberthousands) 31, 30, 31, 30, 31, 2021 2021 2020 2021 2020

Non-performing assets:

Non-accrual $ 23,130 $ 34,465 $ 41,103 (32.9 ) (43.7 )loans and leases % %

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

Total ) )non-performing $ 23,130 $ 34,465 $ 41,103 (32.9 % (43.7 %loans and leases

Other real 2,112 3,033 6,350 (30.4 ) (66.7 )estate owned % %

Total ) )non-performing $ 25,242 $ 37,498 $ 47,453 (32.7 % (46.8 %assets

Accruingtroubled debt $ 1,927 $ 2,366 $ 2,495 (18.5 ) (22.8 )restructured % %loans ^(1)

Totalnon-performingloans and leases 0.51 % 0.75 % 0.95 % as a percentageof total loansand leases

Totalnon-performingassets as a 0.38 % 0.56 % 0.74 % percentage oftotal assets

Allowance forloan and leaselosses as a 237.84 % 175.82 % 161.42 % percentage ofnon-performingloans and leases



Non-performingassets guaranteed byU.S. government:

Non-accrual $ 3,270 $ 6,326 $ 3,645 (48.3 ) (10.3 )loans guaranteed % %

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

Total ) )non-performing $ 3,270 $ 6,326 $ 3,645 (48.3 % (10.3 %loans guaranteed

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

Totalnon-performingloans and leasesnot guaranteed 0.44 % 0.61 % 0.86 % as a percentageof total loansand leases

Totalnon-performingassets not 0.33 % 0.46 % 0.69 % guaranteed as apercentage oftotal assets

(1)

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

Variances in non-performing assets were:

* Non-performing loans and leases were $23.1 million at December 31, 2021, a decrease of $11.3 million from $34.5 million at September 30, 2021 primarily due to payoffs and resolutions; and * Other real estate owned was $2.1 million at December 31, 2021, a decrease of $921,000 from $3.0 million at September 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:

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

Variances in non-performing assets were:

* Non-performing loans and leases were $23.1 million at December 31, 2021, a decrease of $11.3 million from $34.5 million at September 30, 2021 primarily due to payoffs and resolutions; and * Other real estate owned was $2.1 million at December 31, 2021, a decrease of $921,000 from $3.0 million at September 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

December September December 31, 30, 31,

(dollars in thousands) 2021 2021 2020

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

Provision/(recapture) for loan and lease (1,293 ) 352 10,236 losses

Net charge-offs of loans and leases (4,293 ) (1,473 ) (5,147 )

Allowance for loan and lease losses, end $ 55,012 $ 60,598 $ 66,347 of period



Allowance for loan and lease losses toperiod end total loans and leases held 1.21 % 1.31 % 1.53 %for investment

Net charge-offs (annualized) to averageloans and leases outstanding during the 0.37 % 0.13 % 0.47 %period

Provision/(recapture) for loan and leaselosses to net charge-offs during the (0.30) x 0.24 x 1.99 xperiod

The allowance for loan and lease losses as a percentage of total loans and leases held for investment decreased to 1.21% at December 31, 2021 compared to 1.31% at September 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 1.25% at December 31, 2021 from 1.40% at September 30, 2021.

In June 2016, the Financial Accounting Standards Board ("FASB") issued new guidance on the recognition of credit losses, otherwise known as "CECL", which replaces the incurred loss impairment methodology with a methodology that reflects current 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 fourth quarter of 2021 were $4.3 million, or 0.37% of average loans and leases, on an annualized basis, an increase of $2.8 million compared to $1.5 million, or 0.13% of average loans and leases, during the third quarter of 2021, and a decrease of $854,000 from $5.1 million or 0.47% of average loans and leases from the comparable period a year ago.

Net charge-offs for the fourth quarter of 2021 included $1.5 million in the unguaranteed portion of U.S. government guaranteed loans, while net charge-offs for the third quarter of 2021 and fourth quarter of 2020 included $1.3 million and $5.0 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:

December 31, 2021 Change from

(dollars in December 31, September 30, December 31, September Decemberthousands) 2021 2021 2020 30, 31, 2021 2020

Non-interest-bearing $ 2,158,420 $ 2,117,749 $ 1,762,676 1.9 % 22.5 %demand deposits

Interest-bearing 572,426 652,824 494,424 (12.3 ) 15.8 %checking accounts %

Money market demand 1,106,272 1,057,419 1,142,709 4.6 % (3.2 )accounts %

Other savings 638,218 627,294 564,700 1.7 % 13.0 %

Time deposits (below 532,589 553,364 600,810 (3.8 ) (11.4 )$250,000) % %

Time deposits 147,122 149,628 186,712 (1.7 ) (21.2 )($250,000 and above) % %

Total deposits $ 5,155,047 $ 5,158,278 $ 4,752,031 (0.1 ) 8.5 % %

Total deposits remained at $5.2 billion at December 31, 2021 compared to September 30, 2021. Non-interest-bearing deposits were 41.9% and 41.1% of total deposits at December 31, 2021 and September 30, 2021, respectively.

The decrease in the current quarter was primarily due to:

* A decrease in interest bearing checking deposits of $80.4 million primarily due to decreases in public funds deposits.

Partially offset by:

* An increase in non-interest-bearing deposits of $40.7 million, due to increases in consumer deposits; and * An increase in money market demand accounts of $48.9 million, principally driven by business accounts.

Total borrowings and other liabilities were $704.7 million at December 31, 2021, a decrease of $17.1 million from $721.8 million at September 30, 2021, primarily driven by the repayment of the Paycheck Protection Program Liquidity Facility of $156.4 million, offset by increases in Federal Home Loan Bank advances of $135.0 million.

Stockholders' Equity

Total stockholders' equity was $836.4 million at December 31, 2021, an increase of $12.0 million from $824.4 million at September 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.

Under its stock repurchase program, the Company repurchased an aggregate 1,331,708 shares at an average price of $21.68 during 2021. The Company did not repurchase any shares during the fourth quarter.

The following table presents actual regulatory capital dollar amounts and ratios of the Company and Byline Bank as of December 31, 2021:

Minimum Capital Required to be Actual Required Considered Well Capitalized

December Amount Ratio Amount Ratio Amount Ratio31, 2021

Totalcapitalto risk weightedassets:

Company $ 830,262 14.70 % $ 451,903 8.00 % N/A N/A

Bank 753,480 13.38 % 450,470 8.00 % $ 563,087 10.00 %

Tier 1capitalto risk weightedassets:

Company $ 698,846 12.37 % $ 338,927 6.00 % N/A N/A

Bank $ 697,064 12.38 % 337,852 6.00 % $ 450,470 8.00 %

CommonEquityTier 1(CET1) to riskweightedassets:

Company $ 643,408 11.39 % $ 254,195 4.50 % N/A N/A

Bank 697,064 12.38 % 253,389 4.50 % $ 366,007 6.50 %

Tier 1capitalto averageassets:

Company $ 698,846 10.89 % $ 256,657 4.00 % N/A N/A

Bank 697,064 10.87 % 256,478 4.00 % $ 320,597 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, January 28, 2022 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 337883. A recorded replay can be accessed through February 11, 2022 by dialing (866) 813-9403; passcode: 531731.

A slide presentation relating to our fourth 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)

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

(dollars in 2021 2021 2021 2021 2020thousands)

ASSETS

Cash and due from $ 35,247 $ 46,900 $ 50,558 $ 47,101 $ 41,432 banks

Interest bearingdeposits with other 122,684 95,978 52,138 66,038 41,988 banks

Cash and cash 157,931 142,878 102,696 113,139 83,420 equivalents

Equity and othersecurities, at fair 10,578 10,299 10,575 8,557 8,764 value

Securitiesavailable-for-sale, 1,454,542 1,427,605 1,495,789 1,675,907 1,447,230 at fair value

Securitiesheld-to-maturity, at 3,885 3,887 3,890 3,892 4,395 amortized cost

Restricted stock, at 22,002 15,927 11,927 19,057 10,507 cost

Loans held for sale 64,460 48,372 25,046 28,584 7,924

Loans and leases:

Loans and leases 4,537,128 4,609,228 4,469,457 4,454,620 4,340,535

Allowance for loan (55,012 ) (60,598 ) (61,719 ) (65,590 ) (66,347 )and lease losses

Net loans and leases 4,482,116 4,548,630 4,407,738 4,389,030 4,274,188

Servicing assets, at 23,744 23,597 24,683 22,140 22,042 fair value

Premises and 62,548 76,995 80,482 85,182 86,728 equipment, net

Other real estate 2,112 3,033 4,417 5,952 6,350 owned, net

Goodwill and otherintangible assets, 165,558 167,296 169,034 170,882 172,631 net

Bank-owned life 80,039 60,992 60,628 60,258 10,009 insurance

Deferred tax assets, 50,329 45,165 43,127 48,662 40,181 net

Accrued interestreceivable and other 116,328 129,775 100,570 118,883 216,283 assets

Total assets $ 6,696,172 $ 6,704,451 $ 6,540,602 $ 6,750,125 $ 6,390,652

LIABILITIES AND STOCKHOLDERS' EQUITY

LIABILITIES

Non-interest-bearing $ 2,158,420 $ 2,117,749 $ 2,089,455 $ 2,015,643 $ 1,762,676 demand deposits

Interest-bearing 2,996,627 3,040,529 3,002,740 3,008,897 2,989,355 deposits

Total deposits 5,155,047 5,158,278 5,092,195 5,024,540 4,752,031

Other borrowings 519,723 539,119 446,836 749,719 647,901

Subordinated notes, 73,517 73,473 73,429 73,386 73,342 net

Junior subordinateddebentures issued to 36,906 36,796 36,682 36,565 36,451 capital trusts, net

Accrued expenses and 74,597 72,367 74,387 72,120 75,463 other liabilities

Total liabilities 5,859,790 5,880,033 5,723,529 5,956,330 5,585,188

STOCKHOLDERS' EQUITY

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

Common stock 387 386 385 385 384

Additional paid-in 593,753 592,192 590,422 589,209 587,165 capital

Retained earnings 271,676 258,077 236,363 210,385 191,098

Treasury stock (31,570 ) (31,161 ) (20,712 ) (8,275 ) (1,668 )

Accumulated othercomprehensive income (8,302 ) (5,514 ) 177 (8,347 ) 18,047 (loss), net of tax

Total stockholders' 836,382 824,418 817,073 793,795 805,464 equity

Total liabilitiesand stockholders $ 6,696,172 $ 6,704,451 $ 6,540,602 $ 6,750,125 $ 6,390,652 equity

BYLINE BANCORP, INC. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF OPERATIONS (unaudited)

Three Months Ended

Year Ended

(dollars in thousands, except per share data)

December 31,

September 30,

June 30,

March 31,

December 31,

December 31,

December 31,

2021

2021

2021

2021

2020

2021

2020

INTEREST AND DIVIDEND INCOME

Interest and fees on loans and leases

$

58,570

$

56,291

$

54,324

$

53,808

$

53,441

$

222,993

$

208,788

Interest on securities

5,619

5,534

6,359

6,089

6,252

23,601

28,868

Other interest and dividend income

495

947

628

262

232

2,332

1,574

Total interest and dividend income

64,684

62,772

61,311

60,159

59,925

248,926

239,230

INTEREST EXPENSE

Deposits

1,037

986

1,058

1,421

1,814

4,502

16,624

Other borrowings

330

349

482

502

480

1,663

3,318

Subordinated notes and debentures

1,589

1,592

1,597

1,596

1,611

6,374

4,310

Total interest expense

2,956

2,927

3,137

3,519

3,905

12,539

24,252

Net interest income

61,728

59,845

58,174

56,640

56,020

236,387

214,978

PROVISION/(RECAPTURE) FOR LOAN AND LEASE LOSSES

(1,293

)

352

(1,969

)

4,367

10,236

1,457

55,949

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

63,021

59,493

60,143

52,273

45,784

234,930

159,029

NON-INTEREST INCOME

Fees and service charges on deposits

1,955

1,867

1,768

1,664

1,740

7,254

6,471

Loan servicing revenue

3,392

3,344

3,188

2,769

2,645

12,693

11,319

Loan servicing asset revaluation

(2,510

)

(2,650

)

7

(1,505

)

(2,298

)

(6,658

)

(4,951

)

ATM and interchange fees

1,219

1,201

1,044

1,012

1,076

4,476

4,165

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

(21

)

130

(136

)

1,462

2,889

1,435

5,301

Change in fair value of equity securities, net

(98

)

(275

)

517

(206

)

428

(62

)

729

Net gains on sales of loans

12,924

12,761

12,270

8,319

9,449

46,274

33,349

Wealth management and trust income

764

815

722

768

710

3,069

2,680

Other non-interest income

1,389

1,302

1,622

1,459

1,051

5,772

2,997

Total non-interest income

19,014

18,495

21,002

15,742

17,690

74,253

62,060

NON-INTEREST EXPENSE

Salaries and employee benefits

28,850

25,978

24,588

21,806

22,559

101,222

89,756

Occupancy and equipment expense, net

4,995

4,982

4,856

5,779

6,854

20,612

22,957

Loan and lease related expenses

2,328

1,175

1,503

951

1,324

5,957

5,955

Legal, audit, and other professional fees

2,376

2,710

2,898

2,214

1,336

10,198

8,138

Data processing

3,070

3,108

2,847

2,755

2,748

11,780

10,900

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

26

42

389

621

495

1,078

1,819

Other intangible assets amortization expense

1,738

1,738

1,848

1,749

1,892

7,073

7,624

Other non-interest expense

15,585

4,447

4,052

2,967

9,813

27,051

22,273

Total non-interest expense

58,968

44,180

42,981

38,842

47,021

184,971

169,422

INCOME BEFORE PROVISION FOR INCOME TAXES

23,067

33,808

38,164

29,173

16,453

124,212

51,667

PROVISION FOR INCOME TAXES

5,878

8,502

9,672

7,375

4,162

31,427

14,200

NET INCOME

17,189

25,306

28,492

21,798

12,291

92,785

37,467

Dividends on preferred shares

196

196

195

196

196

783

783

INCOME AVAILABLE TO COMMON STOCKHOLDERS

$

16,993

$

25,110

$

28,297

$

21,602

$

12,095

$

92,002

$

36,684

EARNINGS PER COMMON SHARE

Basic

$

0.46

$

0.68

$

0.75

$

0.57

$

0.32

$

2.45

$

0.96

Diluted

$

0.45

$

0.66

$

0.73

$

0.56

$

0.31

$

2.40

$

0.96

BYLINE BANCORP, INC. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF OPERATIONS (unaudited)

Three Months Ended Year Ended

(dollars in December September December December Decemberthousands, except 31, 30, June 30, March 31, 31, 31, 31,per share data)

2021 2021 2021 2021 2020 2021 2020

INTEREST AND DIVIDEND INCOME

Interest and feeson loans and $ 58,570 $ 56,291 $ 54,324 $ 53,808 $ 53,441 $ 222,993 $ 208,788 leases

Interest on 5,619 5,534 6,359 6,089 6,252 23,601 28,868 securities

Other interest and 495 947 628 262 232 2,332 1,574 dividend income

Total interest and 64,684 62,772 61,311 60,159 59,925 248,926 239,230 dividend income

INTEREST EXPENSE

Deposits 1,037 986 1,058 1,421 1,814 4,502 16,624

Other borrowings 330 349 482 502 480 1,663 3,318

Subordinated notes 1,589 1,592 1,597 1,596 1,611 6,374 4,310 and debentures

Total interest 2,956 2,927 3,137 3,519 3,905 12,539 24,252 expense

Net interest 61,728 59,845 58,174 56,640 56,020 236,387 214,978 income

PROVISION/(RECAPTURE) FOR (1,293 ) 352 (1,969 ) 4,367 10,236 1,457 55,949 LOAN AND LEASELOSSES

Net interestincome afterprovision/ 63,021 59,493 60,143 52,273 45,784 234,930 159,029 (recapture) forloan and leaselosses

NON-INTEREST INCOME

Fees and servicecharges on 1,955 1,867 1,768 1,664 1,740 7,254 6,471 deposits

Loan servicing 3,392 3,344 3,188 2,769 2,645 12,693 11,319 revenue

Loan servicing (2,510 ) (2,650 ) 7 (1,505 ) (2,298 ) (6,658 ) (4,951 )asset revaluation

ATM and 1,219 1,201 1,044 1,012 1,076 4,476 4,165 interchange fees

Net realized gains(losses) on (21 ) 130 (136 ) 1,462 2,889 1,435 5,301 securitiesavailable-for-sale

Change in fairvalue of equity (98 ) (275 ) 517 (206 ) 428 (62 ) 729 securities, net

Net gains on sales 12,924 12,761 12,270 8,319 9,449 46,274 33,349 of loans

Wealth management 764 815 722 768 710 3,069 2,680 and trust income

Other non-interest 1,389 1,302 1,622 1,459 1,051 5,772 2,997 income

Total non-interest 19,014 18,495 21,002 15,742 17,690 74,253 62,060 income

NON-INTEREST EXPENSE

Salaries and 28,850 25,978 24,588 21,806 22,559 101,222 89,756 employee benefits

Occupancy andequipment expense, 4,995 4,982 4,856 5,779 6,854 20,612 22,957 net

Loan and lease 2,328 1,175 1,503 951 1,324 5,957 5,955 related expenses

Legal, audit, andother professional 2,376 2,710 2,898 2,214 1,336 10,198 8,138 fees

Data processing 3,070 3,108 2,847 2,755 2,748 11,780 10,900

Net lossrecognized onother real estate 26 42 389 621 495 1,078 1,819 owned and otherrelated expenses

Other intangibleassets 1,738 1,738 1,848 1,749 1,892 7,073 7,624 amortizationexpense

Other non-interest 15,585 4,447 4,052 2,967 9,813 27,051 22,273 expense

Total non-interest 58,968 44,180 42,981 38,842 47,021 184,971 169,422 expense

INCOME BEFOREPROVISION FOR 23,067 33,808 38,164 29,173 16,453 124,212 51,667 INCOME TAXES

PROVISION FOR 5,878 8,502 9,672 7,375 4,162 31,427 14,200 INCOME TAXES

NET INCOME 17,189 25,306 28,492 21,798 12,291 92,785 37,467

Dividends on 196 196 195 196 196 783 783 preferred shares

INCOME AVAILABLETO COMMON $ 16,993 $ 25,110 $ 28,297 $ 21,602 $ 12,095 $ 92,002 $ 36,684 STOCKHOLDERS

EARNINGS PER COMMON SHARE

Basic $ 0.46 $ 0.68 $ 0.75 $ 0.57 $ 0.32 $ 2.45 $ 0.96

Diluted $ 0.45 $ 0.66 $ 0.73 $ 0.56 $ 0.31 $ 2.40 $ 0.96

BYLINE BANCORP, INC. AND SUBSIDIARIES

SELECTED FINANCIAL DATA (unaudited)

As of or For the Three Months Ended

As of or For the Year Ended

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

December 31,

September 30,

June 30,

March 31,

December 31,

December 31,

December 31,

2021

2021

2021

2021

2020

2021

2020

Earnings per Common Share

Basic earnings per common share

$

0.46

$

0.68

$

0.75

$

0.57

$

0.32

$

2.45

$

0.96

Diluted earnings per common share

$

0.45

$

0.66

$

0.73

$

0.56

$

0.31

$

2.40

$

0.96

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

$

0.69

$

0.69

$

0.77

$

0.57

$

0.38

$

2.71

$

1.05

Weighted average common shares outstanding (basic)

37,124,176

37,200,778

37,965,658

38,164,201

38,202,665

37,609,723

38,031,250

Weighted average common shares outstanding (diluted)

37,999,401

38,018,301

38,696,036

38,915,482

38,574,129

38,369,067

38,312,608

Common shares outstanding

37,713,903

37,690,087

38,094,972

38,641,851

38,618,054

37,713,903

38,618,054

Cash dividends per common share

$

0.09

$

0.09

$

0.06

$

0.06

$

0.03

$

0.30

$

0.12

Dividend payout ratio on common stock

20.00

%

13.64

%

8.22

%

10.71

%

9.68

%

12.50

%

12.50

%

Tangible book value per common share(1)

$

17.51

$

17.16

$

16.74

$

15.85

$

16.12

$

17.51

$

16.12

Key Ratios and Performance Metrics (annualized where applicable)

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

3.97

%

3.92

%

3.76

%

3.78

%

3.78

%

3.86

%

3.81

%

Average cost of deposits

0.08

%

0.08

%

0.08

%

0.12

%

0.15

%

0.09

%

0.35

%

Efficiency ratio(2)

70.88

%

54.18

%

51.95

%

51.25

%

61.22

%

57.27

%

58.40

%

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

55.46

%

52.35

%

49.50

%

50.41

%

55.77

%

51.98

%

56.68

%

Non-interest expense to average assets

3.49

%

2.67

%

2.57

%

2.39

%

2.92

%

2.78

%

2.76

%

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

2.76

%

2.58

%

2.45

%

2.35

%

2.67

%

2.54

%

2.68

%

Return on average stockholders' equity

8.13

%

12.19

%

14.10

%

10.96

%

6.07

%

11.31

%

4.78

%

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

12.42

%

12.69

%

14.80

%

11.18

%

7.50

%

12.77

%

5.21

%

Return on average assets

1.02

%

1.53

%

1.70

%

1.34

%

0.76

%

1.40

%

0.61

%

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

1.56

%

1.59

%

1.78

%

1.37

%

0.94

%

1.58

%

0.67

%

Non-interest income to total revenues(1)

23.55

%

23.61

%

26.53

%

21.75

%

24.00

%

23.90

%

22.40

%

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

1.29

%

2.07

%

2.16

%

2.06

%

1.66

%

1.89

%

1.75

%

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

2.03

%

2.15

%

2.28

%

2.10

%

1.91

%

2.14

%

1.83

%

Return on average tangible common stockholders' equity(1)

10.94

%

16.22

%

18.87

%

14.86

%

8.61

%

15.17

%

7.06

%

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

16.38

%

16.86

%

19.77

%

15.15

%

10.47

%

17.04

%

7.63

%

Non-interest-bearing deposits to total deposits

41.87

%

41.06

%

41.03

%

40.12

%

37.09

%

41.87

%

37.09

%

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

89.26

%

90.29

%

88.26

%

89.23

%

91.51

%

89.26

%

91.51

%

Deposits to total liabilities

87.97

%

87.73

%

88.97

%

84.36

%

85.08

%

87.97

%

85.08

%

Deposits per branch

$

117,160

$

117,234

$

115,732

$

109,229

$

103,305

$

117,160

$

103,305

Asset Quality Ratios

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

0.51

%

0.75

%

0.79

%

0.83

%

0.95

%

0.51

%

0.95

%

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

1.21

%

1.31

%

1.38

%

1.47

%

1.53

%

1.21

%

1.53

%

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

0.37

%

0.13

%

0.17

%

0.47

%

0.47

%

0.28

%

0.51

%

Acquisition accounting adjustments(4)

$

4,769

$

6,327

$

9,393

$

10,424

$

13,389

$

4,769

$

13,389

Capital Ratios

Common equity to total assets

12.33

%

12.14

%

12.33

%

11.61

%

12.44

%

12.33

%

12.44

%

Tangible common equity to tangible assets(1)

10.11

%

9.89

%

10.01

%

9.31

%

10.01

%

10.11

%

10.01

%

Leverage ratio

10.89

%

11.21

%

10.82

%

10.93

%

11.12

%

10.89

%

11.12

%

Common equity tier 1 capital ratio

11.39

%

11.32

%

11.97

%

12.09

%

12.20

%

11.39

%

12.20

%

Tier 1 capital ratio

12.37

%

12.32

%

13.05

%

13.20

%

13.36

%

12.37

%

13.36

%

Total capital ratio

14.70

%

14.78

%

15.74

%

15.96

%

16.18

%

14.70

%

16.18

%

BYLINE BANCORP, INC. AND SUBSIDIARIES

SELECTED FINANCIAL DATA (unaudited)

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

(dollars inthousands, except December 31, September 30, June 30, March 31, December 31, December 31, December 31,share and per sharedata)

2021 2021 2021 2021 2020 2021 2020



Earnings per Common Share

Basic earnings per $ 0.46 $ 0.68 $ 0.75 $ 0.57 $ 0.32 $ 2.45 $ 0.96 common share

Diluted earnings per $ 0.45 $ 0.66 $ 0.73 $ 0.56 $ 0.31 $ 2.40 $ 0.96 common share

Adjusted dilutedearnings per common $ 0.69 $ 0.69 $ 0.77 $ 0.57 $ 0.38 $ 2.71 $ 1.05 share^(2)(3)(4)

Weighted averagecommon shares 37,124,176 37,200,778 37,965,658 38,164,201 38,202,665 37,609,723 38,031,250 outstanding (basic)

Weighted averagecommon shares 37,999,401 38,018,301 38,696,036 38,915,482 38,574,129 38,369,067 38,312,608 outstanding(diluted)

Common shares 37,713,903 37,690,087 38,094,972 38,641,851 38,618,054 37,713,903 38,618,054 outstanding

Cash dividends per $ 0.09 $ 0.09 $ 0.06 $ 0.06 $ 0.03 $ 0.30 $ 0.12 common share

Dividend payoutratio on common 20.00 % 13.64 % 8.22 % 10.71 % 9.68 % 12.50 % 12.50 %stock

Tangible book value $ 17.51 $ 17.16 $ 16.74 $ 15.85 $ 16.12 $ 17.51 $ 16.12 per common share^(1)

Key Ratios andPerformance Metrics (annualized whereapplicable)

Net interest margin,fully taxable 3.97 % 3.92 % 3.76 % 3.78 % 3.78 % 3.86 % 3.81 %equivalent ^(1)(5)

Average cost of 0.08 % 0.08 % 0.08 % 0.12 % 0.15 % 0.09 % 0.35 %deposits

Efficiency ratio^(2) 70.88 % 54.18 % 51.95 % 51.25 % 61.22 % 57.27 % 58.40 %

Adjusted efficiency 55.46 % 52.35 % 49.50 % 50.41 % 55.77 % 51.98 % 56.68 %ratio^(1)(2)(3)

Non-interest expense 3.49 % 2.67 % 2.57 % 2.39 % 2.92 % 2.78 % 2.76 %to average assets

Adjustednon-interest expense 2.76 % 2.58 % 2.45 % 2.35 % 2.67 % 2.54 % 2.68 %to average assets^(1)(3)

Return on average 8.13 % 12.19 % 14.10 % 10.96 % 6.07 % 11.31 % 4.78 %stockholders' equity

Adjusted return onaverage 12.42 % 12.69 % 14.80 % 11.18 % 7.50 % 12.77 % 5.21 %stockholders' equity^(1)(3)(4)

Return on average 1.02 % 1.53 % 1.70 % 1.34 % 0.76 % 1.40 % 0.61 %assets

Adjusted return onaverage assets^(1) 1.56 % 1.59 % 1.78 % 1.37 % 0.94 % 1.58 % 0.67 %(3)(4)

Non-interest incometo total revenues^ 23.55 % 23.61 % 26.53 % 21.75 % 24.00 % 23.90 % 22.40 %(1)

Pre-taxpre-provision return 1.29 % 2.07 % 2.16 % 2.06 % 1.66 % 1.89 % 1.75 %on average assets^(1)

Adjusted pre-taxpre-provision return 2.03 % 2.15 % 2.28 % 2.10 % 1.91 % 2.14 % 1.83 %on average assets^(1)(3)

Return on averagetangible common 10.94 % 16.22 % 18.87 % 14.86 % 8.61 % 15.17 % 7.06 %stockholders' equity^(1)

Adjusted return onaverage tangible 16.38 % 16.86 % 19.77 % 15.15 % 10.47 % 17.04 % 7.63 %common stockholders'equity^(1)(3)

Non-interest-bearingdeposits to total 41.87 % 41.06 % 41.03 % 40.12 % 37.09 % 41.87 % 37.09 %deposits

Loans and leasesheld for sale andloans and lease held 89.26 % 90.29 % 88.26 % 89.23 % 91.51 % 89.26 % 91.51 %for investment tototal deposits

Deposits to total 87.97 % 87.73 % 88.97 % 84.36 % 85.08 % 87.97 % 85.08 %liabilities

Deposits per branch $ 117,160 $ 117,234 $ 115,732 $ 109,229 $ 103,305 $ 117,160 $ 103,305

Asset Quality Ratios

Non-performing loansand leases to totalloans and leases 0.51 % 0.75 % 0.79 % 0.83 % 0.95 % 0.51 % 0.95 %held for investment,net before ALLL

ALLL to total loansand leases held for 1.21 % 1.31 % 1.38 % 1.47 % 1.53 % 1.21 % 1.53 %investment, netbefore ALLL

Net charge-offs toaverage total loansand leases held for 0.37 % 0.13 % 0.17 % 0.47 % 0.47 % 0.28 % 0.51 %investment, netbefore ALLL

Acquisitionaccounting $ 4,769 $ 6,327 $ 9,393 $ 10,424 $ 13,389 $ 4,769 $ 13,389 adjustments^(4)

Capital Ratios

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

Tangible commonequity to tangible 10.11 % 9.89 % 10.01 % 9.31 % 10.01 % 10.11 % 10.01 %assets^(1)

Leverage ratio 10.89 % 11.21 % 10.82 % 10.93 % 11.12 % 10.89 % 11.12 %

Common equity tier 1 11.39 % 11.32 % 11.97 % 12.09 % 12.20 % 11.39 % 12.20 %capital ratio

Tier 1 capital ratio 12.37 % 12.32 % 13.05 % 13.20 % 13.36 % 12.37 % 13.36 %

Total capital ratio 14.70 % 14.78 % 15.74 % 15.96 % 16.18 % 14.70 % 16.18 %

(1)

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

(2)

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

(3)

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

(4)

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

(5)

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

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

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

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

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

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

BYLINE BANCORP, INC. AND SUBSIDIARIES

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

For the Three Months Ended December 31,

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

$

106,170

$

42

0.16

%

$

39,500

$

21

0.22

%

Loans and leases(1)

4,610,608

58,570

5.04

%

4,340,388

53,441

4.90

%

Taxable securities

1,288,969

5,111

1.57

%

1,364,980

5,555

1.62

%

Tax-exempt securities(2)

184,015

1,217

2.62

%

168,878

1,148

2.71

%

Total interest-earning assets

$

6,189,762

$

64,940

4.16

%

$

5,913,746

$

60,165

4.05

%

Allowance for loan and lease losses

(59,144

)

(63,891

)

All other assets

568,451

550,766

TOTAL ASSETS

$

6,699,069

$

6,400,621

LIABILITIES AND STOCKHOLDERS' EQUITY

Deposits

Interest checking

$

659,841

$

236

0.14

%

$

578,520

$

287

0.20

%

Money market accounts

1,089,398

345

0.13

%

1,152,012

444

0.15

%

Savings

633,469

75

0.05

%

554,633

66

0.05

%

Time deposits

688,154

381

0.22

%

802,409

1,017

0.50

%

Total interest-bearing deposits

3,070,862

1,037

0.13

%

3,087,574

1,814

0.23

%

Other borrowings

385,787

330

0.34

%

577,309

480

0.33

%

Subordinated notes and debentures

110,341

1,589

5.71

%

109,704

1,611

5.84

%

Total borrowings

496,128

1,919

1.53

%

687,013

2,091

1.21

%

Total interest-bearing liabilities

$

3,566,990

$

2,956

0.33

%

$

3,774,587

$

3,905

0.41

%

Non-interest-bearing demand deposits

2,222,583

1,761,902

Other liabilities

70,521

58,539

Total stockholders' equity

838,975

805,593

TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY

$

6,699,069

$

6,400,621

Net interest spread(3)

3.83

%

3.64

%

Net interest income, fully taxable equivalent

$

61,984

$

56,260

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

3.97

%

3.78

%

Tax-equivalent adjustment

(256

)

0.01

%

(240

)

0.01

%

Net interest income

$

61,728

$

56,020

Net interest margin(4)

3.96

%

3.77

%

Net loan accretion impact on margin

$

1,450

0.09

%

$

2,304

0.16

%

BYLINE BANCORP, INC. AND SUBSIDIARIES

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

For the Three Months Ended December 31,

2021 2020

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

ASSETS

Cash and cash $ 106,170 $ 42 0.16 % $ 39,500 $ 21 0.22 %equivalents

Loans and leases^(1) 4,610,608 58,570 5.04 % 4,340,388 53,441 4.90 %

Taxable securities 1,288,969 5,111 1.57 % 1,364,980 5,555 1.62 %

Tax-exempt 184,015 1,217 2.62 % 168,878 1,148 2.71 %securities^(2)

Totalinterest-earning $ 6,189,762 $ 64,940 4.16 % $ 5,913,746 $ 60,165 4.05 %assets

Allowance for loan (59,144 ) (63,891 ) and lease losses

All other assets 568,451 550,766

TOTAL ASSETS $ 6,699,069 $ 6,400,621

LIABILITIES AND STOCKHOLDERS' EQUITY

Deposits

Interest checking $ 659,841 $ 236 0.14 % $ 578,520 $ 287 0.20 %

Money market 1,089,398 345 0.13 % 1,152,012 444 0.15 %accounts

Savings 633,469 75 0.05 % 554,633 66 0.05 %

Time deposits 688,154 381 0.22 % 802,409 1,017 0.50 %

Totalinterest-bearing 3,070,862 1,037 0.13 % 3,087,574 1,814 0.23 %deposits

Other borrowings 385,787 330 0.34 % 577,309 480 0.33 %

Subordinated notes 110,341 1,589 5.71 % 109,704 1,611 5.84 %and debentures

Total borrowings 496,128 1,919 1.53 % 687,013 2,091 1.21 %

Totalinterest-bearing $ 3,566,990 $ 2,956 0.33 % $ 3,774,587 $ 3,905 0.41 %liabilities

Non-interest-bearing 2,222,583 1,761,902 demand deposits

Other liabilities 70,521 58,539

Total stockholders' 838,975 805,593 equity

TOTAL LIABILITIESAND STOCKHOLDERS' $ 6,699,069 $ 6,400,621 EQUITY

Net interest spread^ 3.83 % 3.64 %(3)

Net interest income,fully taxable $ 61,984 $ 56,260 equivalent

Net interest margin,fully taxable 3.97 % 3.78 %equivalent^(2)(4)

Tax-equivalent (256 ) 0.01 % (240 ) 0.01 %adjustment

Net interest income $ 61,728 $ 56,020

Net interest margin^ 3.96 % 3.77 %(4)



Net loan accretion $ 1,450 0.09 % $ 2,304 0.16 %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 Year Ended December 31,

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

$

69,338

$

117

0.17

%

$

46,508

$

228

0.49

%

Loans and leases(1)

4,518,836

222,993

4.93

%

4,196,708

208,788

4.98

%

Taxable securities

1,376,045

21,909

1.59

%

1,287,480

27,233

2.12

%

Tax-exempt securities(2)

184,622

4,946

2.68

%

128,664

3,773

2.93

%

Total interest-earning assets

$

6,148,841

$

249,965

4.07

%

$

5,659,360

$

240,022

4.24

%

Allowance for loan and lease losses

(63,351

)

(48,688

)

All other assets

556,641

529,471

TOTAL ASSETS

$

6,642,131

$

6,140,143

LIABILITIES AND STOCKHOLDERS' EQUITY

Deposits

Interest checking

$

622,147

$

883

0.14

%

$

469,418

$

938

0.20

%

Money market accounts

1,073,970

1,285

0.12

%

1,132,978

4,238

0.37

%

Savings

610,953

289

0.05

%

520,472

252

0.05

%

Time deposits

722,974

2,045

0.28

%

940,165

11,196

1.19

%

Total interest-bearing deposits

3,030,044

4,502

0.15

%

3,063,033

16,624

0.54

%

Other borrowings

525,078

1,663

0.32

%

542,937

3,318

0.61

%

Subordinated notes and debentures

110,108

6,374

5.79

%

72,188

4,310

5.97

%

Total borrowings

635,186

8,037

1.27

%

615,125

7,628

1.24

%

Total interest-bearing liabilities

$

3,665,230

$

12,539

0.34

%

$

3,678,158

$

24,252

0.66

%

Non-interest-bearing demand deposits

2,085,454

1,624,754

Other liabilities

71,430

52,653

Total stockholders' equity

820,017

784,578

TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY

$

6,642,131

$

6,140,143

Net interest spread(3)

3.73

%

3.58

%

Net interest income, fully taxable equivalent

$

237,426

$

215,770

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

3.86

%

3.81

%

Tax-equivalent adjustment

(1,039

)

0.02

%

(792

)

0.01

%

Net interest income

$

236,387

$

214,978

Net interest margin(4)

3.84

%

3.80

%

Net loan accretion impact on margin

$

6,451

0.10

%

$

13,058

0.23

%

BYLINE BANCORP, INC. AND SUBSIDIARIES

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

For the Year Ended December 31,

2021 2020

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

ASSETS

Cash and cash $ 69,338 $ 117 0.17 % $ 46,508 $ 228 0.49 %equivalents

Loans and leases^(1) 4,518,836 222,993 4.93 % 4,196,708 208,788 4.98 %

Taxable securities 1,376,045 21,909 1.59 % 1,287,480 27,233 2.12 %

Tax-exempt 184,622 4,946 2.68 % 128,664 3,773 2.93 %securities^(2)

Totalinterest-earning $ 6,148,841 $ 249,965 4.07 % $ 5,659,360 $ 240,022 4.24 %assets

Allowance for loan (63,351 ) (48,688 ) and lease losses

All other assets 556,641 529,471

TOTAL ASSETS $ 6,642,131 $ 6,140,143

LIABILITIES AND STOCKHOLDERS' EQUITY

Deposits

Interest checking $ 622,147 $ 883 0.14 % $ 469,418 $ 938 0.20 %

Money market 1,073,970 1,285 0.12 % 1,132,978 4,238 0.37 %accounts

Savings 610,953 289 0.05 % 520,472 252 0.05 %

Time deposits 722,974 2,045 0.28 % 940,165 11,196 1.19 %

Totalinterest-bearing 3,030,044 4,502 0.15 % 3,063,033 16,624 0.54 %deposits

Other borrowings 525,078 1,663 0.32 % 542,937 3,318 0.61 %

Subordinated notes 110,108 6,374 5.79 % 72,188 4,310 5.97 %and debentures

Total borrowings 635,186 8,037 1.27 % 615,125 7,628 1.24 %

Totalinterest-bearing $ 3,665,230 $ 12,539 0.34 % $ 3,678,158 $ 24,252 0.66 %liabilities

Non-interest-bearing 2,085,454 1,624,754 demand deposits

Other liabilities 71,430 52,653

Total stockholders' 820,017 784,578 equity

TOTAL LIABILITIESAND STOCKHOLDERS' $ 6,642,131 $ 6,140,143 EQUITY

Net interest spread^ 3.73 % 3.58 %(3)

Net interest income,fully taxable $ 237,426 $ 215,770 equivalent

Net interest margin,fully taxable 3.86 % 3.81 %equivalent^(2)(4)

Tax-equivalent (1,039 ) 0.02 % (792 ) 0.01 %adjustment

Net interest income $ 236,387 $ 214,978

Net interest margin^ 3.84 % 3.80 %(4)



Net loan accretion $ 6,451 0.10 % $ 13,058 0.23 %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 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.

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 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 Year Ended

(dollars inthousands, December September June 30, March 31, December December Decemberexcept per 31, 30, 31, 31, 31,share data)

2021 2021 2021 2021 2020 2021 2020

Net incomeandearningsper share excludingsignificantitems

Reported $ 17,189 $ 25,306 $ 28,492 $ 21,798 $ 12,291 $ 92,785 $ 37,467 Net Income

Significant items:

Impairmentcharges onassets held 12,449 1,435 1,942 604 4,022 16,430 4,769 for saleand ROUasset

Tax benefit (3,377 ) (391 ) (529 ) (165 ) (1,120 ) (4,462 ) (1,328 )

Adjusted $ 26,261 $ 26,350 $ 29,905 $ 22,237 $ 15,193 $ 104,753 $ 40,908 Net Income

ReportedDiluted $ 0.45 $ 0.66 $ 0.73 $ 0.56 $ 0.31 $ 2.40 $ 0.96 Earningsper Share

Significant items:

Impairmentcharges onassets held 0.33 0.04 0.05 0.02 0.10 0.43 0.12 for saleand ROUasset

Tax benefit (0.09 ) (0.01 ) (0.01 ) (0.01 ) (0.03 ) (0.12 ) (0.03 )

Adjusted Diluted $ 0.69 $ 0.69 $ 0.77 $ 0.57 $ 0.38 $ 2.71 $ 1.05Earnings per Share

BYLINE BANCORP, INC. AND SUBSIDIARIES

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

As of or For the Three Months Ended

As of or For the Year Ended

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

December 31,

September 30,

June 30,

March 31,

December 31,

December 31,

December 31,

2021

2021

2021

2021

2020

2021

2020

Adjusted non-interest expense:

Non-interest expense

$

58,968

$

44,180

$

42,981

$

38,842

$

47,021

$

184,971

$

169,422

Less: Significant items

Impairment charges on assets held for sale and ROU asset

12,449

1,435

1,942

604

4,022

16,430

4,769

Adjusted non-interest expense

$

46,519

$

42,745

$

41,039

$

38,238

$

42,999

$

168,541

$

164,653

Adjusted non-interest expense excluding amortization of intangible assets:

Adjusted non-interest expense

$

46,519

$

42,745

$

41,039

$

38,238

$

42,999

$

168,541

$

164,653

Less: Amortization of intangible assets

1,738

1,738

1,848

1,749

1,892

7,073

7,624

Adjusted non-interest expense excluding amortization of intangible assets

$

44,781

$

41,007

$

39,191

$

36,489

$

41,107

$

161,468

$

157,029

Pre-tax pre-provision net income:

Pre-tax income

$

23,067

$

33,808

$

38,164

$

29,173

$

16,453

$

124,212

$

51,667

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

(1,293

)

352

(1,969

)

4,367

10,236

1,457

55,949

Pre-tax pre-provision net income

$

21,774

$

34,160

$

36,195

$

33,540

$

26,689

$

125,669

$

107,616

Adjusted pre-tax pre-provision net income:

Pre-tax pre-provision net income

$

21,774

$

34,160

$

36,195

$

33,540

$

26,689

$

125,669

$

107,616

Impairment charges on assets held for sale and ROU asset

12,449

1,435

1,942

604

4,022

16,430

4,769

Adjusted pre-tax pre-provision net income

$

34,223

$

35,595

$

38,137

$

34,144

$

30,711

$

142,099

$

112,385

Tax equivalent net interest income

Net interest income

$

61,728

$

59,845

$

58,174

$

56,640

$

56,020

$

236,387

$

214,978

Add: Tax-equivalent adjustment

256

264

269

250

240

1,039

792

Net interest income, fully taxable equivalent

$

61,984

$

60,109

$

58,443

$

56,890

$

56,260

$

237,426

$

215,770

Total revenue:

Net interest income

$

61,728

$

59,845

$

58,174

$

56,640

$

56,020

$

236,387

$

214,978

Add: Non-interest income

19,014

18,495

21,002

15,742

17,690

74,253

62,060

Total revenue

$

80,742

$

78,340

$

79,176

$

72,382

$

73,710

$

310,640

$

277,038

Tangible common stockholders' equity:

Total stockholders' equity

$

836,382

$

824,418

$

817,073

$

793,795

$

805,464

$

836,382

$

805,464

Less: Preferred stock

10,438

10,438

10,438

10,438

10,438

10,438

10,438

Less: Goodwill and other intangibles

165,558

167,296

169,034

170,882

172,631

165,558

172,631

Tangible common stockholders' equity

$

660,386

$

646,684

$

637,601

$

612,475

$

622,395

$

660,386

$

622,395

Tangible assets:

Total assets

$

6,696,172

$

6,704,451

$

6,540,602

$

6,750,125

$

6,390,652

$

6,696,172

$

6,390,652

Less: Goodwill and other intangibles

165,558

167,296

169,034

170,882

172,631

165,558

172,631

Tangible assets

$

6,530,614

$

6,537,155

$

6,371,568

$

6,579,243

$

6,218,021

$

6,530,614

$

6,218,021

Average tangible common stockholders' equity:

Average total stockholders' equity

$

838,975

$

823,754

$

810,490

$

806,452

$

805,593

$

820,017

$

784,578

Less: Average preferred stock

10,438

10,438

10,438

10,438

10,438

10,438

10,438

Less: Average goodwill and other intangibles

166,396

168,140

169,906

171,795

173,536

169,042

176,448

Average tangible common stockholders' equity

$

662,141

$

645,176

$

630,146

$

624,219

$

621,619

$

640,537

$

597,692

Average tangible assets:

Average total assets

$

6,699,069

$

6,560,868

$

6,720,492

$

6,587,765

$

6,400,621

$

6,642,131

$

6,140,143

Less: Average goodwill and other intangibles

166,396

168,140

169,906

171,795

173,536

169,042

176,448

Average tangible assets

$

6,532,673

$

6,392,728

$

6,550,586

$

6,415,970

$

6,227,085

$

6,473,089

$

5,963,695

Tangible net income available to common stockholders:

Net income available to common stockholders

$

16,993

$

25,110

$

28,297

$

21,602

$

12,095

$

92,002

$

36,684

Add: After-tax intangible asset amortization

1,266

1,265

1,344

1,272

1,365

5,147

5,501

Tangible net income available to common stockholders

$

18,259

$

26,375

$

29,641

$

22,874

$

13,460

$

97,149

$

42,185

Adjusted tangible net income available to common stockholders:

Tangible net income available to common stockholders

$

18,259

$

26,375

$

29,641

$

22,874

$

13,460

$

97,149

$

42,185

Impairment charges on assets held for sale and ROU asset

12,449

1,435

1,942

604

4,022

16,430

4,769

Tax benefit on significant items

(3,377

)

(391

)

(529

)

(165

)

(1,120

)

(4,462

)

(1,328

)

Adjusted tangible net income available to common stockholders

$

27,331

$

27,419

$

31,054

$

23,313

$

16,362

$

109,117

$

45,626

BYLINE BANCORP, INC. AND SUBSIDIARIES

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

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

(dollars inthousands,except pershare data, December 31, September 30, June 30, March 31, December 31, December 31, December 31,ratiosannualized,whereapplicable)

2021 2021 2021 2021 2020 2021 2020

Adjustednon-interest expense:

Non-interest $ 58,968 $ 44,180 $ 42,981 $ 38,842 $ 47,021 $ 184,971 $ 169,422 expense

Less:Significant items

Impairmentcharges onassets held 12,449 1,435 1,942 604 4,022 16,430 4,769 for sale andROU asset

Adjustednon-interest $ 46,519 $ 42,745 $ 41,039 $ 38,238 $ 42,999 $ 168,541 $ 164,653 expense

Adjustednon-interestexpenseexcluding amortizationof intangibleassets:

Adjustednon-interest $ 46,519 $ 42,745 $ 41,039 $ 38,238 $ 42,999 $ 168,541 $ 164,653 expense

Less:Amortization 1,738 1,738 1,848 1,749 1,892 7,073 7,624 of intangibleassets

Adjustednon-interestexpenseexcluding $ 44,781 $ 41,007 $ 39,191 $ 36,489 $ 41,107 $ 161,468 $ 157,029 amortizationof intangibleassets

Pre-taxpre-provision net income:

Pre-tax income $ 23,067 $ 33,808 $ 38,164 $ 29,173 $ 16,453 $ 124,212 $ 51,667

Add: Provision/(recapture) (1,293 ) 352 (1,969 ) 4,367 10,236 1,457 55,949 for loan andlease losses

Pre-taxpre-provision $ 21,774 $ 34,160 $ 36,195 $ 33,540 $ 26,689 $ 125,669 $ 107,616 net income

Adjustedpre-tax pre-provisionnet income:

Pre-taxpre-provision $ 21,774 $ 34,160 $ 36,195 $ 33,540 $ 26,689 $ 125,669 $ 107,616 net income

Impairmentcharges onassets held 12,449 1,435 1,942 604 4,022 16,430 4,769 for sale andROU asset

Adjustedpre-tax $ 34,223 $ 35,595 $ 38,137 $ 34,144 $ 30,711 $ 142,099 $ 112,385 pre-provisionnet income

Tax equivalentnet interest income

Net interest $ 61,728 $ 59,845 $ 58,174 $ 56,640 $ 56,020 $ 236,387 $ 214,978 income

Add:Tax-equivalent 256 264 269 250 240 1,039 792 adjustment

Net interestincome, fully $ 61,984 $ 60,109 $ 58,443 $ 56,890 $ 56,260 $ 237,426 $ 215,770 taxableequivalent

Total revenue:

Net interest $ 61,728 $ 59,845 $ 58,174 $ 56,640 $ 56,020 $ 236,387 $ 214,978 income

Add:Non-interest 19,014 18,495 21,002 15,742 17,690 74,253 62,060 income

Total revenue $ 80,742 $ 78,340 $ 79,176 $ 72,382 $ 73,710 $ 310,640 $ 277,038

Tangiblecommon stockholders'equity:

Totalstockholders' $ 836,382 $ 824,418 $ 817,073 $ 793,795 $ 805,464 $ 836,382 $ 805,464 equity

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

Less: Goodwilland other 165,558 167,296 169,034 170,882 172,631 165,558 172,631 intangibles

Tangiblecommon $ 660,386 $ 646,684 $ 637,601 $ 612,475 $ 622,395 $ 660,386 $ 622,395 stockholders'equity

Tangible assets:

Total assets $ 6,696,172 $ 6,704,451 $ 6,540,602 $ 6,750,125 $ 6,390,652 $ 6,696,172 $ 6,390,652

Less: Goodwilland other 165,558 167,296 169,034 170,882 172,631 165,558 172,631 intangibles

Tangible $ 6,530,614 $ 6,537,155 $ 6,371,568 $ 6,579,243 $ 6,218,021 $ 6,530,614 $ 6,218,021 assets

Averagetangiblecommon stockholders'equity:

Average totalstockholders' $ 838,975 $ 823,754 $ 810,490 $ 806,452 $ 805,593 $ 820,017 $ 784,578 equity

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

Less: Averagegoodwill and 166,396 168,140 169,906 171,795 173,536 169,042 176,448 otherintangibles

Averagetangiblecommon $ 662,141 $ 645,176 $ 630,146 $ 624,219 $ 621,619 $ 640,537 $ 597,692 stockholders'equity

Averagetangible assets:

Average total $ 6,699,069 $ 6,560,868 $ 6,720,492 $ 6,587,765 $ 6,400,621 $ 6,642,131 $ 6,140,143 assets

Less: Averagegoodwill and 166,396 168,140 169,906 171,795 173,536 169,042 176,448 otherintangibles

Averagetangible $ 6,532,673 $ 6,392,728 $ 6,550,586 $ 6,415,970 $ 6,227,085 $ 6,473,089 $ 5,963,695 assets

Tangible netincomeavailable to commonstockholders:

Net incomeavailable to $ 16,993 $ 25,110 $ 28,297 $ 21,602 $ 12,095 $ 92,002 $ 36,684 commonstockholders

Add: After-taxintangible 1,266 1,265 1,344 1,272 1,365 5,147 5,501 assetamortization

Tangible netincomeavailable to $ 18,259 $ 26,375 $ 29,641 $ 22,874 $ 13,460 $ 97,149 $ 42,185 commonstockholders

Adjustedtangible netincome available tocommonstockholders:

Tangible netincomeavailable to $ 18,259 $ 26,375 $ 29,641 $ 22,874 $ 13,460 $ 97,149 $ 42,185 commonstockholders

Impairmentcharges onassets held 12,449 1,435 1,942 604 4,022 16,430 4,769 for sale andROU asset

Tax benefit onsignificant (3,377 ) (391 ) (529 ) (165 ) (1,120 ) (4,462 ) (1,328 )items

Adjustedtangible netincome $ 27,331 $ 27,419 $ 31,054 $ 23,313 $ 16,362 $ 109,117 $ 45,626 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 Year Ended

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

December 31,

September 30,

June 30,

March 31,

December 31,

December 31,

December 31,

2021

2021

2021

2021

2020

2021

2020

Pre-tax pre-provision return on average assets:

Pre-tax pre-provision net income

$

21,774

$

34,160

$

36,195

$

33,540

$

26,689

$

125,669

$

107,616

Average total assets

6,699,069

6,560,868

6,720,492

6,587,765

6,400,621

6,642,131

6,140,143

Pre-tax pre-provision return on average assets

1.29

%

2.07

%

2.16

%

2.06

%

1.66

%

1.89

%

1.75

%

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

Adjusted pre-tax pre-provision net income

$

34,223

$

35,595

$

38,137

$

34,144

$

30,711

$

142,099

$

112,385

Average total assets

6,699,069

6,560,868

6,720,492

6,587,765

6,400,621

6,642,131

6,140,143

Adjusted pre-tax pre-provision return on average assets

2.03

%

2.15

%

2.28

%

2.10

%

1.91

%

2.14

%

1.83

%

Net interest margin, fully taxable equivalent

Net interest income, fully taxable equivalent

$

61,984

$

60,109

$

58,443

$

56,890

$

56,260

$

237,426

$

215,770

Total average interest-earning assets

6,189,762

6,076,065

6,231,616

6,097,712

5,913,746

6,148,841

5,659,360

Net interest margin, fully taxable equivalent

3.97

%

3.92

%

3.76

%

3.78

%

3.78

%

3.86

%

3.81

%

Non-interest income to total revenues:

Non-interest income

$

19,014

$

18,495

$

21,002

$

15,742

$

17,690

$

74,253

$

62,060

Total revenues

80,742

78,340

79,176

72,382

73,710

310,640

277,038

Non-interest income to total revenues

23.55

%

23.61

%

26.53

%

21.75

%

24.00

%

23.90

%

22.40

%

Adjusted non-interest expense to average assets:

Adjusted non-interest expense

$

46,519

$

42,745

$

41,039

$

38,238

$

42,999

$

168,541

$

164,653

Average total assets

6,699,069

6,560,868

6,720,492

6,587,765

6,400,621

6,642,131

6,140,143

Adjusted non-interest expense to average assets

2.76

%

2.58

%

2.45

%

2.35

%

2.67

%

2.54

%

2.68

%

Adjusted efficiency ratio:

Adjusted non-interest expense excluding amortization of intangible assets

$

44,781

$

41,007

$

39,191

$

36,489

$

41,107

$

161,468

$

157,029

Total revenues

80,742

78,340

79,176

72,382

73,710

310,640

277,038

Adjusted efficiency ratio

55.46

%

52.35

%

49.50

%

50.41

%

55.77

%

51.98

%

56.68

%

Adjusted return on average assets:

Adjusted net income

$

26,261

$

26,350

$

29,905

$

22,237

$

15,193

$

104,753

$

40,908

Average total assets

6,699,069

6,560,868

6,720,492

6,587,765

6,400,621

6,642,131

6,140,143

Adjusted return on average assets

1.56

%

1.59

%

1.78

%

1.37

%

0.94

%

1.58

%

0.67

%

Adjusted return on average stockholders' equity:

Adjusted net income

$

26,261

$

26,350

$

29,905

$

22,237

$

15,193

$

104,753

$

40,908

Average stockholders' equity

838,975

823,754

810,490

806,452

805,593

820,017

784,578

Adjusted return on average stockholders' equity

12.42

%

12.69

%

14.80

%

11.18

%

7.50

%

12.77

%

5.21

%

Tangible common equity to tangible assets:

Tangible common equity

$

660,386

$

646,684

$

637,601

$

612,475

$

622,395

$

660,386

$

622,395

Tangible assets

6,530,614

6,537,155

6,371,568

6,579,243

6,218,021

6,530,614

6,218,021

Tangible common equity to tangible assets

10.11

%

9.89

%

10.01

%

9.31

%

10.01

%

10.11

%

10.01

%

Return on average tangible common stockholders' equity:

Tangible net income available to common stockholders

$

18,259

$

26,375

$

29,641

$

22,874

$

13,460

$

97,149

$

42,185

Average tangible common stockholders' equity

662,141

645,176

630,146

624,219

621,619

640,537

597,692

Return on average tangible common stockholders' equity

10.94

%

16.22

%

18.87

%

14.86

%

8.61

%

15.17

%

7.06

%

Adjusted return on average tangible common stockholders' equity:

Adjusted tangible net income available to common stockholders

$

27,331

$

27,419

$

31,054

$

23,313

$

16,362

$

109,117

$

45,626

Average tangible common stockholders' equity

662,141

645,176

630,146

624,219

621,619

640,537

597,692

Adjusted return on average tangible common stockholders' equity

16.38

%

16.86

%

19.77

%

15.15

%

10.47

%

17.04

%

7.63

%

Tangible book value per share:

Tangible common equity

$

660,386

$

646,684

$

637,601

$

612,475

$

622,395

$

660,386

$

622,395

Common shares outstanding

37,713,903

37,690,087

38,094,972

38,641,851

38,618,054

37,713,903

38,618,054

Tangible book value per share

$

17.51

$

17.16

$

16.74

$

15.85

$

16.12

$

17.51

$

16.12

View source version on businesswire.com: https://www.businesswire.com/news/home/20220127005904/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