First quarter net income of $30.4 million, $0.70 diluted earnings per share

Byline Bancorp, Inc. (NYSE:BY), today reported:

			For the quarter					First Quarter Highlights
		1Q24		4Q23		1Q23		First Quarter Highlights
Financial Results ($ in thousands)								• ROAA of 1.36%
	Net interest income	$	85,541	$	86,285	$	75,718
	Non-interest income		15,473		14,503		15,145	• PTPP ROAA of 2.10%⁽¹⁾
	Total Revenue⁽¹⁾		101,014		100,788		90,863
	Non-interest expense		53,809		53,584		48,800	• ROTCE of 15.88%⁽¹⁾
	Pre-tax pre-provision net income (PTPP)⁽¹⁾		47,205		47,204		42,063
	Provision for credit losses		6,643		7,235		9,825	• TCE/TA of 8.76%⁽¹⁾; CET1 of 10.59%
	Provision for income taxes		10,122		10,365		8,293
	Net Income	$	30,440	$	29,604	$	23,945	• TBV per share of $18.29⁽¹⁾, up 8.1% YoY

Per Share								*Income Statement*
	Diluted EPS	$	0.70	$	0.68	$	0.64	• Total revenue of $101.0 million⁽¹⁾
	Dividends declared per common share		0.09		0.09		0.09
	Book value per share		22.88		22.62		21.10	• Net Income of $30.4 million
	Tangible book value per share⁽¹⁾		18.29		17.98		16.92
								• PTPP of $47.2 million⁽¹⁾
Balance Sheet & Credit Quality ($ in thousands)
	Total deposits	$	7,350,202	$	7,176,999	$	5,812,652	• Tax equivalent NIM of 4.01%⁽¹⁾
	Total loans and leases		6,801,782		6,702,311		5,543,711
	Net charge-offs (NCO)		6,211		12,186		1,171	• Efficiency ratio of 51.94%⁽¹⁾
	Allowance for credit losses (ACL)		102,366		101,686		90,465
	ACL to total loans and leases held for investment		1.51%		1.52%		1.64%	*Balance Sheet*
								• Deposit growth of $173.2 million, or 9.7%⁽²⁾
Select Ratios (annualized where applicable)
	Efficiency ratio⁽¹⁾		51.94%		51.63%		52.10%	• Total loans and leases grew $99.5 million,
	Return on average assets (ROAA)		1.36%		1.34%		1.32%	or 6.0%⁽²⁾
	Return on average stockholders' equity		12.26%		12.56%		12.38%
	Return on average tangible common equity⁽¹⁾		15.88%		16.68%		16.20%	• Total assets grew $528.5 million, or 23.9%⁽²⁾
	Net Interest Margin (NIM)		4.00%		4.08%		4.38%
	Common equity to total assets		10.72%		11.15%		10.57%	• Stockholders' equity exceeded $1.0 billion
	Tangible common equity to tangible assets⁽¹⁾		8.76%		9.06%		8.66%
	Common Equity Tier 1		10.59%		10.35%		10.27%	• Loan/deposit ratio decreased to 92.54%

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

CEO/President Commentary

Roberto R. Herencia, Executive Chairman and CEO of Byline Bancorp, commented, "Our team continues to execute well on our strategy and this quarter was no exception. We reported strong financial results while surpassing $9.0 billion in total assets and $1.0 billion in stockholders' equity. We remain optimistic about our opportunities to execute on our strategy in the future to further enhance the value of our franchise, while becoming the preeminent commercial bank in Chicago."

Alberto J. Paracchini, President of Byline Bancorp, added, "We had a solid start to 2024 and were pleased with our results for quarter. Earnings and profitability remained robust and we had nice growth in loans and deposits. Credit quality remained stable and expenses continue to remain well managed. Our balance sheet remains strong, giving us flexibility to grow the business and take advantage of opportunities in the market. I want to thank our employees for their continued hard work in serving our clients."

Board Declares Cash Dividend of $0.09 per Share

On April 23, 2024, the Company's Board of Directors declared a cash dividend of $0.09 per share, payable on May 21, 2024, to stockholders of record of the Company's common stock as of May 7, 2024.

STATEMENTS OF OPERATIONS HIGHLIGHTS

Net Interest Income

Net interest income for the first quarter of 2024 was $85.5 million, a decrease of $744,000, or 0.9%, from the fourth quarter of 2023. The decrease in net interest income was primarily due to an increase of $2.7 million in deposit interest expense primarily due to time deposit growth and higher rates paid on deposits, and an increase of $773,000 in other borrowing interest expense due to increased borrowings, offset by lower borrowing costs. The decrease was partially offset by an increase of $2.5 million in other interest and dividend income mainly due to interest income earned on funds held with the Federal Reserve Bank.

Tax-equivalent net interest margin⁽¹⁾ for the first quarter of 2024 was 4.01%, a decrease of eight basis points compared to the fourth quarter of 2023. Total net loan accretion income impact on the margin contributed 20 basis points to the net interest margin for the current quarter compared to 24 basis points for the prior quarter.

The average cost of total deposits was 2.56% for the first quarter of 2024, an increase of 14 basis points compared to the fourth quarter of 2023, as a result of higher rates on time deposits and money market accounts. Average non-interest-bearing demand deposits were 25.9% of average total deposits for the current quarter compared to 27.5% during the prior quarter.

Provision for Credit Losses

The provision for credit losses was $6.6 million for the first quarter of 2024, a decrease of $592,000 compared to $7.2 million for the fourth quarter of 2023, mainly attributed to a smaller allocation to individually assessed loans, offset by growth in the loan and lease portfolio. The provision for credit losses for the quarter is comprised of a provision for loan and lease losses of $6.9 million and a recapture for unfunded commitments of $248,000.

Non-interest Income

Non-interest income for the first quarter of 2024 was $15.5 million, an increase of $970,000, or 6.7%, compared to $14.5 million for the fourth quarter of 2023. The increase in total non-interest income was primarily due to a $1.0 million increase in other non-interest income due to increased income on derivatives and gains on the sales of leased equipment, and a $531,000 decrease in the downward valuation of the loan servicing asset reflecting lower discount rates. These were partially offset by a $449,000 decrease in the change in fair value of equity securities.

Net gains on sales of loans were $5.5 million for the current quarter, an increase of $53,000 compared to the prior quarter. During the first quarter of 2024, we sold $72.5 million of U.S. government guaranteed loans compared to $89.1 million during the fourth quarter of 2023.

Non-interest Expense

Non-interest expense for the first quarter of 2024 was $53.8 million, an increase of $225,000, or 0.4%, from $53.6 million for the fourth quarter of 2023. The increase in total non-interest expense was mainly due to an increase of $2.0 million in salaries and employee benefits primarily due to increases in payroll taxes due to annual counter resets, and an increase of $938,000 in occupancy and equipment expense, net, due to higher real estate taxes and maintenance expense. These increases were offset by a $2.0 million decrease in impairment charges on assets held for sale, and an $837,000 decrease in data processing expenses due to decreased merger-related expenses. Other non-interest expense includes $1.1 million of charges related to branch consolidations incurred during the first quarter of 2024.

Our efficiency ratio was 51.94% for the first quarter of 2024 compared to 51.63% for the fourth quarter of 2023, an increase of 31 basis points. Excluding significant items, our adjusted efficiency ratio⁽¹⁾ for the first quarter 2024 was 51.75%, compared to 48.64% for the fourth quarter of 2023.

Income Taxes

We recorded income tax expense of $10.1 million during the first quarter of 2024, compared to $10.4 million during the fourth quarter of 2023. The effective tax rates were 25.0% and 25.9% for the first quarter of 2024 and fourth quarter of 2023, respectively.

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

STATEMENTS OF FINANCIAL CONDITION HIGHLIGHTS

Assets

Total assets were $9.4 billion as of March 31, 2024, an increase of $528.5 million, or 6.0%, compared to $8.9 billion at December 31, 2023. The increase was primarily due to an increase in cash and cash equivalents of $410.7 million, inclusive of $200.0 million in short-term investments, and an increase in net loans and leases held for investment of $93.2 million mainly due to growth in commercial and industrial originations, offset by a decline of $52.0 million in commercial real estate.

Asset and Credit Quality

The ACL was $102.4 million as of March 31, 2024, an increase of $680,000, or 0.7%, from $101.7 million at December 31, 2023. Net charge-offs of loans and leases during the first quarter of 2024 were $6.2 million, or 0.37% of average loans and leases, on an annualized basis. This was a decrease of $6.0 million compared to net charge-offs of $12.2 million, or 0.73% of average loans and leases, during the fourth quarter of 2023. The decrease is primarily due to lower charge-offs in the commercial and industrial and commercial real estate loan portfolios.

Non-performing assets were $68.7 million, or 0.73% of total assets, as of March 31, 2024, an increase of $3.4 million from $65.3 million, or 0.74% of total assets, at December 31, 2023. The increase was primarily the result of migration within the government guaranteed loan portfolio to non-accrual status. The government guaranteed portion of non-accrual loans was $7.1 million at March 31, 2024 compared to $4.2 million at December 31, 2023.

Deposits and Other Liabilities

Total deposits increased $173.2 million to $7.4 billion at March 31, 2024 compared to $7.2 billion at December 31, 2023. The increase in deposits in the current quarter was mainly due to increases in time deposits and interest bearing checking accounts. Time deposit growth of $137.7 million was principally due to increases in consumer time deposits from deposit campaigns. Interest-bearing demand deposits increased $109.5 million primarily due to growth in commercial deposits.

Total borrowings and other liabilities were $1.1 billion at March 31, 2024, an increase of $336.4 million from $714.8 million at December 31, 2023. The increase was primarily driven by a $200.0 million advance under the Bank Term Funding Program and increases in Federal Home Loan Bank advances, offset by a decrease of $11.3 million as a result of the repayment of the amount outstanding under our revolving line of credit.

Stockholders' Equity

Total stockholders' equity grew to $1.0 billion at March 31, 2024, an increase of $18.9 million from $990.2 million at December 31, 2023. The quarterly increase was primarily due to increased retained earnings from net income.

Conference Call, Webcast and Slide Presentation

We will host a conference call and webcast at 9:00 a.m. Central Time on Friday, April 26, 2024, 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 (833) 470-1428; passcode 371735. A recorded replay can be accessed through May 10, 2024, by dialing (866) 813-9403; passcode: 454029.

A slide presentation relating to our first quarter 2024 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 of Byline Bank, a full service commercial bank serving small- and medium-sized businesses, financial sponsors, and consumers. Byline Bank has approximately $9.4 billion in assets and operates 48 branch locations throughout the Chicago and Milwaukee metropolitan areas. Byline Bank offers a broad range of commercial and community banking products and services including small ticket equipment leasing solutions and is one of the top 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 judgment and analysis, which may or may not prove to be correct, and which are subject to uncertainties and contingencies outside the control of Byline and its respective affiliates, directors, employees and other representatives, which could cause actual results to differ materially from those presented in this communication.

No representations, warranties or guarantees are or will be made by Byline as to the reliability, accuracy or completeness of any forward-looking statements contained in this communication or that such forward-looking statements are or will remain based on reasonable assumptions. You should not place undue reliance on any forward-looking statements contained in this communication.

Certain risks and important factors that could affect Byline's future results are identified in 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, 2023. 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)

	March 31,			December 31,			March 31,
(dollars in thousands)	2024			2023			2023
ASSETS
Cash and due from banks	$	58,640		$	60,431		$	52,725
Interest bearing deposits with other banks		578,197			165,705			231,486
Cash and cash equivalents		636,837			226,136			284,211
Equity and other securities, at fair value		9,135			8,743			8,339
Securities available-for-sale, at fair value		1,379,147			1,342,480			1,164,387
Securities held-to-maturity, at amortized cost		1,156			1,157			2,704
Restricted stock, at cost		22,793			16,304			38,777
Loans held for sale		23,568			18,005			28,379
Loans and leases:
Loans and leases		6,778,214			6,684,306			5,515,332
Allowance for credit losses - loans and leases		(102,366	)		(101,686	)		(90,465	)
Net loans and leases		6,675,848			6,582,620			5,424,867
Servicing assets, at fair value		20,992			19,844			20,944
Premises and equipment, net		64,466			66,627			56,098
Goodwill and other intangible assets, net		202,133			203,478			157,432
Bank-owned life insurance		97,748			96,900			82,693
Deferred tax assets, net		53,029			50,058			64,918
Accrued interest receivable and other assets		223,651			249,615			196,597
Total assets	$	9,410,503		$	8,881,967		$	7,530,346
LIABILITIES AND STOCKHOLDERS' EQUITY
LIABILITIES
Non-interest-bearing demand deposits	$	1,851,727		$	1,905,876		$	1,952,045
Interest-bearing deposits		5,498,475			5,271,123			3,860,607
Total deposits		7,350,202			7,176,999			5,812,652
Other borrowings		721,173			395,190			662,810
Subordinated notes, net		73,909			73,866			73,735
Junior subordinated debentures issued to capital trusts, net		70,567			70,452			37,442
Accrued interest payable and other liabilities		185,603			175,309			148,057
Total liabilities		8,401,454			7,891,816			6,734,696
STOCKHOLDERS' EQUITY
Common stock		452			451			390
Additional paid-in capital		708,844			710,488			598,103
Retained earnings		455,532			429,036			356,365
Treasury stock		(48,869	)		(49,707	)		(51,066	)
Accumulated other comprehensive loss, net of tax		(106,910	)		(100,117	)		(108,142	)
Total stockholders' equity		1,009,049			990,151			795,650
Total liabilities and stockholders' equity	$	9,410,503		$	8,881,967		$	7,530,346

BYLINE BANCORP, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS (unaudited)

	Three Months Ended
	March 31,			December 31,			March 31,
(dollars in thousands, except per share data)	2024			2023			2023
INTEREST AND DIVIDEND INCOME
Interest and fees on loans and leases	$	123,792		$	124,042		$	92,343
Interest on securities		9,734			9,227			6,600
Other interest and dividend income		4,795			2,345			1,059
Total interest and dividend income		138,321			135,614			100,002
INTEREST EXPENSE
Deposits		45,962			43,252			16,298
Other borrowings		3,824			3,051			5,888
Subordinated notes and debentures		2,994			3,026			2,098
Total interest expense		52,780			49,329			24,284
Net interest income		85,541			86,285			75,718
PROVISION FOR CREDIT LOSSES		6,643			7,235			9,825
Net interest income after provision for credit losses		78,898			79,050			65,893
NON-INTEREST INCOME
Fees and service charges on deposits		2,427			2,486			2,120
Loan servicing revenue		3,364			3,377			3,380
Loan servicing asset revaluation		(703	)		(1,234	)		656
ATM and interchange fees		1,075			1,082			1,063
Change in fair value of equity securities, net		392			841			350
Net gains on sales of loans		5,533			5,480			5,148
Wealth management and trust income		1,157			1,256			924
Other non-interest income		2,228			1,215			1,504
Total non-interest income		15,473			14,503			15,145
NON-INTEREST EXPENSE
Salaries and employee benefits		33,953			31,974			30,394
Occupancy and equipment expense, net		5,284			4,346			4,444
Impairment charge on assets held for sale		—			1,980			20
Loan and lease related expenses		685			649			963
Legal, audit, and other professional fees		2,719			2,352			3,114
Data processing		4,145			4,982			3,783
Net (gain) loss recognized on other real estate owned and other related expenses		(98	)		89			(103	)
Other intangible assets amortization expense		1,345			1,550			1,455
Other non-interest expense		5,776			5,662			4,730
Total non-interest expense		53,809			53,584			48,800
INCOME BEFORE PROVISION FOR INCOME TAXES		40,562			39,969			32,238
PROVISION FOR INCOME TAXES		10,122			10,365			8,293
NET INCOME	$	30,440		$	29,604		$	23,945
EARNINGS PER COMMON SHARE
Basic	$	0.70		$	0.69		$	0.65
Diluted	$	0.70		$	0.68		$	0.64

BYLINE BANCORP, INC. AND SUBSIDIARIES
SELECTED FINANCIAL DATA (unaudited)

	As of or For the Three Months Ended
(dollars in thousands, except share	March 31,			December 31,			March 31,
and per share data)	2024			2023			2023
Earnings per Common Share
Basic earnings per common share	$	0.70		$	0.69		$	0.65
Diluted earnings per common share	$	0.70		$	0.68		$	0.64
Adjusted diluted earnings per common share⁽¹⁾⁽³⁾	$	0.70		$	0.73		$	0.65
Weighted average common shares outstanding (basic)		43,258,087			43,065,294			36,955,085
Weighted average common shares outstanding (diluted)		43,727,344			43,537,778			37,539,912
Common shares outstanding		44,108,387			43,764,056			37,713,427
Cash dividends per common share	$	0.09		$	0.09		$	0.09
Dividend payout ratio on common stock		12.86	%		13.24	%		14.06	%
Book value per common share	$	22.88		$	22.62		$	21.10
Tangible book value per common share⁽¹⁾	$	18.29		$	17.98		$	16.92
Key Ratios and Performance Metrics (annualized where applicable)
Net interest margin		4.00	%		4.08	%		4.38	%
Net interest margin, fully taxable equivalent ⁽¹⁾⁽⁴⁾		4.01	%		4.09	%		4.39	%
Average cost of deposits		2.56	%		2.42	%		1.15	%
Efficiency ratio⁽¹⁾⁽²⁾		51.94	%		51.63	%		52.10	%
Adjusted efficiency ratio^(1)(2)(3)		51.75	%		48.64	%		51.54	%
Non-interest income to total revenues⁽¹⁾		15.32	%		14.39	%		16.67	%
Non-interest expense to average assets		2.40	%		2.42	%		2.69	%
Adjusted non-interest expense to average assets⁽¹⁾⁽³⁾		2.39	%		2.28	%		2.67	%
Return on average stockholders' equity		12.26	%		12.56	%		12.38	%
Adjusted return on average stockholders' equity⁽¹⁾⁽³⁾		12.31	%		13.50	%		12.62	%
Return on average assets		1.36	%		1.34	%		1.32	%
Adjusted return on average assets⁽¹⁾⁽³⁾		1.36	%		1.44	%		1.35	%
Pre-tax pre-provision return on average assets⁽¹⁾		2.10	%		2.13	%		2.32	%
Adjusted pre-tax pre-provision return on average assets⁽¹⁾⁽³⁾		2.11	%		2.27	%		2.35	%
Return on average tangible common stockholders' equity⁽¹⁾		15.88	%		16.68	%		16.20	%
Adjusted return on average tangible common stockholders' equity⁽¹⁾⁽³⁾		15.95	%		17.89	%		16.49	%
Non-interest-bearing deposits to total deposits		25.19	%		26.56	%		33.58	%
Loans and leases held for sale and loans and lease held for investment to total deposits		92.54	%		93.39	%		95.37	%
Deposits to total liabilities		87.49	%		90.94	%		86.31	%
Deposits per branch	$	153,129		$	149,521		$	152,965
Asset Quality Ratios
Non-performing loans and leases to total loans and leases held for investment, net before ACL		1.00	%		0.96	%		0.84	%
Total non-performing assets as a percentage of total assets		0.73	%		0.74	%		0.67	%
ACL to total loans and leases held for investment, net before ACL		1.51	%		1.52	%		1.64	%
Net charge-offs (annualized) to average total loans and leases held for investment, net before ACL - loans and leases		0.37	%		0.73	%		0.09	%
Capital Ratios
Common equity to total assets		10.72	%		11.15	%		10.57	%
Tangible common equity to tangible assets⁽¹⁾		8.76	%		9.06	%		8.66	%
Leverage ratio		10.91	%		10.86	%		10.46	%
Common equity tier 1 capital ratio		10.59	%		10.35	%		10.27	%
Tier 1 capital ratio		11.62	%		11.39	%		10.90	%
Total capital ratio		13.66	%		13.38	%		13.19	%

(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 merger-related expenses and impairment charges on assets held for sale and ROU assets.
(4)	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%.

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
	March 31, 2024								December 31, 2023								March 31, 2023
(dollars in thousands)	Average Balance⁽⁵⁾			Interest Inc / Exp		Avg. Yield / Rate			Average Balance⁽⁵⁾			Interest Inc / Exp		Avg. Yield / Rate			Average Balance⁽⁵⁾			Interest Inc / Exp		Avg. Yield / Rate
ASSETS
Cash and cash equivalents	$	339,449		$	3,828		4.54	%	$	201,862		$	1,822		3.58	%	$	97,578		$	442		1.84	%
Loans and leases⁽¹⁾		6,681,488			123,792		7.45	%		6,632,827			124,042		7.42	%		5,484,372			92,343		6.83	%
Taxable securities		1,422,661			9,822		2.78	%		1,389,580			8,848		2.53	%		1,275,377			6,431		2.04	%
Tax-exempt securities⁽²⁾		159,984			1,112		2.80	%		163,608			1,142		2.77	%		151,817			994		2.65	%
Total interest-earning assets	$	8,603,582		$	138,554		6.48	%	$	8,387,877		$	135,854		6.43	%	$	7,009,144		$	100,210		5.80	%
Allowance for credit losses - loans and leases		(102,256	)							(106,474	)							(84,321	)
All other assets		529,615								506,233								420,328
TOTAL ASSETS	$	9,030,941							$	8,787,636							$	7,345,151
LIABILITIES AND STOCKHOLDERS' EQUITY
Deposits
Interest checking	$	590,406		$	2,429		1.65	%	$	570,706		$	2,335		1.62	%	$	606,008		$	2,494		1.67	%
Money market accounts		2,237,324			19,660		3.53	%		2,159,841			18,730		3.44	%		1,465,677			7,728		2.14	%
Savings		531,912			197		0.15	%		560,372			208		0.15	%		613,590			227		0.15	%
Time deposits		1,992,357			23,676		4.78	%		1,861,279			21,979		4.68	%		966,409			5,849		2.45	%
Total interest-bearing deposits		5,351,999			45,962		3.45	%		5,152,198			43,252		3.33	%		3,651,684			16,298		1.81	%
Other borrowings		472,644			3,824		3.25	%		395,711			3,051		3.06	%		573,433			5,852		4.14	%
Federal funds purchased		—			—		0.00	%		—			—		0.00	%		2,778			36		5.30	%
Subordinated notes and debentures		144,387			2,994		8.34	%		144,230			3,026		8.32	%		111,101			2,098		7.66	%
Total borrowings		617,031			6,818		4.44	%		539,941			6,077		4.47	%		687,312			7,986		4.71	%
Total interest-bearing liabilities	$	5,969,030		$	52,780		3.56	%	$	5,692,139		$	49,329		3.44	%	$	4,338,996		$	24,284		2.27	%
Non-interest-bearing demand deposits		1,874,322								1,950,644								2,076,613
Other liabilities		188,783								209,656								145,253
Total stockholders' equity		998,806								935,197								784,289
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY	$	9,030,941							$	8,787,636							$	7,345,151
Net interest spread⁽³⁾							2.92	%							2.99	%							3.53	%
Net interest income, fully taxable equivalent				$	85,774							$	86,525							$	75,926
Net interest margin, fully taxable equivalent⁽²⁾⁽⁴⁾							4.01	%							4.09	%							4.39	%
Less: Tax-equivalent adjustment					233		0.01	%					240		0.01	%					208		0.01	%
Net interest income				$	85,541							$	86,285							$	75,718
Net interest margin⁽⁴⁾							4.00	%							4.08	%							4.38	%

Net loan accretion impact on margin				$	4,284		0.20	%				$	5,110		0.24	%				$	729		0.04	%

(1)	Loan and lease balances are net of deferred origination fees and costs and initial direct 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 SUBSIDIARIES
SELECTED BALANCE SHEET TABLES AND FINANCIAL RATIOS (unaudited)

The following table presents our allocation of originated, purchased credit deteriorated (PCD), and acquired non-credit-deteriorated loans and leases at the dates indicated:

	March 31, 2024						December 31, 2023						March 31, 2023
(dollars in thousands)	Amount			% of Total			Amount			% of Total			Amount			% of Total
Originated loans and leases:
Commercial real estate	$	1,879,149			27.7	%	$	1,907,029			28.5	%	$	1,749,808			31.7	%
Residential real estate		488,887			7.2	%		465,133			7.0	%		441,291			8.0	%
Construction, land development, and other land		416,996			6.2	%		415,162			6.2	%		446,763			8.1	%
Commercial and industrial		2,420,952			35.7	%		2,311,563			34.6	%		2,061,267			37.4	%
Installment and other		2,855			0.0	%		2,919			0.0	%		1,603			0.0	%
Leasing financing receivables		691,617			10.2	%		665,239			10.0	%		552,174			10.0	%
Total originated loans and leases	$	5,900,456			87.0	%	$	5,767,045			86.3	%	$	5,252,906			95.2	%
Purchased credit deteriorated loans:
Commercial real estate	$	117,460			1.7	%	$	137,807			2.1	%	$	39,000			0.7	%
Residential real estate		39,535			0.6	%		42,510			0.6	%		30,070			0.6	%
Construction, land development, and other land		26,418			0.4	%		25,331			0.4	%		345			0.0	%
Commercial and industrial		18,100			0.3	%		19,460			0.3	%		1,745			0.0	%
Installment and other		118			0.0	%		125			0.0	%		134			0.0	%
Total purchased credit deteriorated loans	$	201,631			3.0	%	$	225,233			3.4	%	$	71,294			1.3	%
Acquired non-credit-deteriorated loans and leases:
Commercial real estate	$	271,720			4.0	%	$	275,476			4.1	%	$	140,576			2.6	%
Residential real estate		204,589			3.0	%		211,887			3.2	%		27,975			0.5	%
Construction, land development, and other land		85,553			1.3	%		86,344			1.3	%		—			0.0	%
Commercial and industrial		113,673			1.7	%		117,538			1.7	%		20,793			0.4	%
Installment and other		166			0.0	%		156			0.0	%		85			0.0	%
Leasing financing receivables		426			0.0	%		627			0.0	%		1,703			0.0	%
Total acquired non-credit-deteriorated loans and leases	$	676,127			10.0	%	$	692,028			10.3	%	$	191,132			3.5	%
Total loans and leases	$	6,778,214			100.0	%	$	6,684,306			100.0	%	$	5,515,332			100.0	%
Allowance for credit losses - loans and leases		(102,366	)					(101,686	)					(90,465	)
Total loans and leases, net of allowance for credit losses - loans and leases	$	6,675,848					$	6,582,620					$	5,424,867

The following table presents the balance and activity within the allowance for credit losses - loans and lease for the periods indicated:

	Three Months Ended
	March 31,			December 31,			March 31,
(dollars in thousands)	2024			2023			2023
ACL - loans and leases, beginning of period	$	101,686		$	105,696		$	81,924
Provision for credit losses - loans and leases		6,891			8,176			9,712
Net charge-offs - loans and leases		(6,211	)		(12,186	)		(1,171	)
ACL - loans and leases, end of period	$	102,366		$	101,686		$	90,465
Net charge-offs - loans and leases to average total loans and leases held for investment, net before ACL		0.37	%		0.73	%		0.09	%
Provision for credit losses - loans and leases to net charge-offs - loans and leases during the period		1.11	x		0.67	x		8.29	x

BYLINE BANCORP, INC. AND SUBSIDIARIES
SELECTED BALANCE SHEET TABLES AND FINANCIAL RATIOS (unaudited)

The following table presents the amounts of non-performing loans and leases and other real estate owned at the date indicated:

										March 31, 2024
										Change from
(dollars in thousands)	March 31, 2024			December 31, 2023			March 31, 2023			December 31, 2023			March 31, 2023
Non-performing assets:
Non-accrual loans and leases	$	67,899		$	64,107		$	46,536			5.9	%		45.9	%
Past due loans and leases 90 days or more and still accruing interest		—			—			—		—%			—%
Total non-performing loans and leases	$	67,899		$	64,107		$	46,536			5.9	%		45.9	%
Other real estate owned		785			1,200			3,712			(34.6	)%		(78.8	)%
Total non-performing assets	$	68,684		$	65,307		$	50,248			5.2	%		36.7	%
Total non-performing loans and leases as a percentage of total loans and leases		1.00	%		0.96	%		0.84	%
Total non-performing assets as a percentage of total assets		0.73	%		0.74	%		0.67	%
Allowance for credit losses - loans and lease as a percentage of non-performing loans and leases		150.76	%		158.62	%		194.40	%

Non-performing assets guaranteed by U.S. government:
Non-accrual loans guaranteed	$	7,138		$	4,154		$	2,335			71.8	%		205.6	%
Past due loans 90 days or more and still accruing interest guaranteed		—			—			—		—%			—%
Total non-performing loans guaranteed	$	7,138		$	4,154		$	2,335			71.8	%		205.6	%
Total non-performing loans and leases not guaranteed as a percentage of total loans and leases		0.90	%		0.90	%		0.80	%
Total non-performing assets not guaranteed as a percentage of total assets		0.65	%		0.69	%		0.64	%

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

							March 31, 2024
							Change from
(dollars in thousands)	March 31, 2024		December 31, 2023		March 31, 2023		December 31, 2023			March 31, 2023
Non-interest-bearing demand deposits	$	1,851,727	$	1,905,876	$	1,952,045		(2.8	)%		(5.1	)%
Interest-bearing checking accounts		687,142		577,609		560,837		19.0	%		22.5	%
Money market demand accounts

Byline Bancorp, Inc. Reports First Quarter 2024 Financial Results