by-8k_20200720.htm

BYLINE BANCORP, INC.

Date: July 23, 2020

/s/ Alberto J. Paracchini

Alberto J. Paracchini

President and Chief Executive Officer

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

On July 23, 2020, the Company issued a press release announcing its financial results for the second quarter ended June 30, 2020. A copy of the press release is attached as Exhibit 99.1 and is incorporated herein by reference.

The information included under this Item 2.02 of Form 8-K and the attached exhibit 99.1 are being furnished and shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended, nor shall it be deemed incorporated by reference in any filing under the Securities Act of 1933, as amended, except as shall be expressly set forth by specific reference in any such filing.

On July 20, 2020, Mr. Owen Beacom announced his intention to retire from his position as Chief Credit Officer of Byline Bancorp, Inc. (the “Company”) and Byline Bank, effective August 14, 2020. Mr. Beacom joined the Company in May of 2018, as part of its acquisition of First Evanston Bancorp, Inc., and was named Chief Credit Officer in August 2019. Mr. Mark Fucinato, currently Senior Credit Officer at Byline Bank, will succeed Mr. Beacom as Chief Credit Officer.

The Company’s press release announcing Mr. Beacom’s retirement and the appointment of Mr. Fucinato is attached hereto as Exhibit 99.2 and is incorporated herein by reference.

This communication contains forward-looking statements within the meaning of the U.S. federal securities laws. Forward-looking statements include, without limitation, statements concerning plans, estimates, calculations, forecasts and projections with respect to the anticipated future performance of the Company. These statements are often, but not always, made through the use of words or phrases such as ‘‘may’’, ‘‘might’’, ‘‘should’’, ‘‘could’’, ‘‘predict’’, ‘‘potential’’, ‘‘believe’’, ‘‘expect’’, ‘‘continue’’, ‘‘will’’, ‘‘anticipate’’, ‘‘seek’’, ‘‘estimate’’, ‘‘intend’’, ‘‘plan’’, ‘‘projection’’, ‘‘would’’, ‘‘annualized’’, “target” and ‘‘outlook’’, or the negative version of those words or other comparable words or phrases of a future or forward-looking nature. Forward-looking statements involve estimates and known and unknown risks, and reflect various assumptions and involve elements of subjective judgement and analysis, which may or may not prove to be correct, and which are subject to uncertainties and contingencies outside the control of Byline and its respective affiliates, directors, employees and other representatives, which could cause actual results to differ materially from those presented in this communication.

The COVID-19 pandemic is adversely affecting us, our employees, customers, counterparties and third-party service providers, and the ultimate extent of the impacts on our business, financial position, results of operations, liquidity, and prospects is uncertain. Continued deterioration in general business and economic conditions, including further increases in unemployment rates, or turbulence in U.S. or global financial markets could adversely affect our revenues and the values of our assets and liabilities, reduce the availability of funding, lead to a tightening of credit, and further increase stock price volatility. In addition, changes to statutes, regulations, or regulatory policies or practices as a result of, or in response to COVID-19, could affect us in substantial and unpredictable ways.

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

10-K for the year ended December 31, 2019, and its Quarterly Report on Form 10-Q for the quarter ended March 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.

Pursuant to the requirements of the Securities Exchange Act of 1934, as amended, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

Chicago, IL, July 23, 2020 – Byline Bancorp, Inc. (the “Company” or “Byline”)(NYSE: BY), the parent company of Byline Bank (the “Bank”), today reported net income of $9.1 million, or $0.24 per diluted share, for the second quarter of 2020, compared with net income of $3.0 million, or $0.07 per diluted share, for the first quarter of 2020, and net income of $13.2 million, or $0.34 per diluted share, for the second quarter of 2019.

Alberto J. Paracchini, President and Chief Executive Officer of Byline, commented, “We continued to operate in a challenging environment due to the ongoing COVID-19 pandemic. Notwithstanding, our team continued to execute well during the second quarter, which enabled us to deliver a solid financial performance while remaining committed to supporting our employees, customers, and communities. We actively participated in the Paycheck Protection Program, and we were able to help more than 3,600 small businesses access approximately $627 million in funding. Our participation in the PPP helped drive strong growth in both loans and deposits during the second quarter. We are also seeing improving demand for government guaranteed loans outside of the PPP, which resulted in a higher level of loan sales this quarter.

“While the pandemic continues, we remain cautious given the uncertainties currently present in the economic outlook. We have increased our reserves through our Allowance for Loan and Lease Losses, added to our capital position with the subordinated debt offering we completed during the quarter, and continue to maintain a high level of liquidity. We believe this approach positions us well to continue to manage through this environment,” said Mr. Paracchini.

We continued to execute a series of measures implemented during the prior quarter to ensure the safety of employees, customers, and communities, to support customer needs, and to limit operational disruptions. Our Board of Directors and management teams continue to monitor and, when appropriate, make changes to our response. Recent updates include:

The following table presents information regarding the PPP loans as of June 30, 2020:

	Three Months Ended										Six Months Ended
	June 30,		March 31,		December 31,		September 30,		June 30,		June 30,		June 30,
(dollars in thousands)	2020		2020		2019		2019		2019		2020		2019
INTEREST AND DIVIDEND INCOME
Interest and fees on loans and leases	$	50,153	$	54,158	$	58,203	$	63,391	$	59,524	$	104,311	$	113,907
Interest on securities		7,530		8,016		7,212		7,040		6,665		15,546		12,767
Other interest and dividend income		222		992		500		598		571		1,214		1,196
Total interest and dividend income		57,905		63,166		65,915		71,029		66,760		121,071		127,870
INTEREST EXPENSE
Deposits		4,246		7,804		9,325		9,618		9,306		12,050		17,382
Other borrowings		476		1,897		1,989		2,835		2,265		2,373		4,431
Subordinated notes and debentures		574		640		687		738		741		1,214		1,524
Total interest expense		5,296		10,341		12,001		13,191		12,312		15,637		23,337
Net interest income	$	52,609	$	52,825	$	53,914	$	57,838	$	54,448	$	105,434	$	104,533

The following table presents the average interest-earning assets and average interest-bearing liabilities for the periods indicated:

	For the Three Months Ended
	June 30, 2020								March 31, 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	$	58,971		$	25		0.17	%	$	38,934		$	157		1.63	%
Loans and leases⁽¹⁾		4,283,654			50,153		4.71	%		3,799,213			54,158		5.73	%
Taxable securities		1,243,604			7,021		2.27	%		1,175,120			8,316		2.85	%
Tax-exempt securities⁽²⁾		117,340			706		2.42	%		84,679			535		2.54	%
Total interest-earning assets	$	5,703,569		$	57,905		4.08	%	$	5,097,946		$	63,166		4.98	%
Allowance for loan and lease losses		(43,009	)							(33,664	)
All other assets		526,414								501,670
TOTAL ASSETS	$	6,186,974							$	5,565,952
LIABILITIES AND STOCKHOLDERS’ EQUITY
Deposits
Interest checking	$	392,070		$	165		0.17	%	$	338,905		$	260		0.31	%
Money market accounts		1,214,713			946		0.31	%		962,205			2,214		0.93	%
Savings		511,049			61		0.05	%		480,270			61		0.05	%
Time deposits		976,710			3,074		1.27	%		1,113,596			5,269		1.90	%
Total interest-bearing deposits		3,094,542			4,246		0.55	%		2,894,976			7,804		1.08	%
Other borrowings		534,766			476		0.36	%		521,108			1,897		1.46	%
Subordinated notes and debentures		40,180			574		5.75	%		37,385			640		6.88	%
Total borrowings		574,946			1,050		0.73	%		558,493			2,537		1.83	%
Total interest-bearing liabilities	$	3,669,488		$	5,296		0.58	%	$	3,453,469		$	10,341		1.20	%
Non-interest-bearing demand deposits		1,692,723								1,298,800
Other liabilities		48,884								48,256
Total stockholders’ equity		775,879								765,427
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY	$	6,186,974							$	5,565,952
Net interest spread⁽³⁾							3.50	%							3.78	%
Net interest income				$	52,609							$	52,825
Net interest margin⁽⁴⁾							3.71	%							4.17	%

Net loan accretion impact on margin				$	3,172		0.22	%				$	3,671		0.29	%

Net interest income for the second quarter of 2020 was $52.6 million, relatively the same level as the first quarter of 2020, as a lower cost of funds was offset by a decrease in loan yields.

Net interest margin for the second quarter of 2020 was 3.71%, a decrease of 46 basis points compared to 4.17% for the first quarter of 2020. Total net accretion income on acquired loans contributed 22 basis points to the net interest margin for the second quarter of 2020 compared to 29 basis points for the first quarter of 2020, a decrease of 7 basis points. The net interest margin decrease during the second quarter of 2020 was primarily driven by decreased loan and lease yields largely resulting from a full quarter impact of decreases in short-term rates and lower-yielding PPP loan balances partly offset by a decrease in the cost of funds also due to decreases in short-term rates and higher non-interest-bearing demand deposit balances.

The average cost of total deposits was 0.36% for the second quarter of 2020, a decrease of 39 basis points compared to the first quarter of 2020, mainly due to a lower average cost of money market accounts and time deposits as well as a favorable change in deposit mix. Average non-interest-bearing demand deposits grew by $393.9 million, while average time deposits decreased by $136.9 million. Average non-interest-bearing demand deposits were 35.4% of average total deposits for the second quarter of 2020 compared to 31.4% for the first quarter of 2020.

The provision for loan and lease losses was $15.5 million for the second quarter of 2020, an increase of $1.1 million compared to $14.5 million for the first quarter of 2020. The second quarter included allocations of $14.2 million for originated loans and leases, $862,000 for acquired non-impaired loans, and $477,000 for acquired impaired loans. The provision during the second quarter of 2020 included $5.3 million in specific impairments on originated loans, including $1.4 million related to the unguaranteed portion of government guaranteed loans. The second quarter provision included $7.3 million to address the impact of the COVID-19 pandemic.

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

	Three Months Ended															Six Months Ended
	June 30,			March 31,			December 31,			September 30,			June 30,			June 30,			June 30,
(dollars in thousands)	2020			2020			2019			2019			2019			2020			2019
NON-INTEREST INCOME
Fees and service charges on deposits	$	1,455		$	1,673		$	1,635		$	1,612		$	1,441		$	3,128		$	3,211
Loan servicing revenue		2,980			2,758			2,834			2,692			2,630			5,738			5,169
Loan servicing asset revaluation		(711	)		(3,064	)		(2,545	)		(1,610	)		(1,223	)		(3,775	)		(2,484	)
ATM and interchange fees		845			1,216			1,150			973			945			2,061			1,662
Net gains on sales of securities available-for-sale		—			1,375			—			178			973			1,375			973
Change in fair value of equity securities, net		766			(619	)		381			(15	)		551			147			1,050
Net gains on sales of loans		6,456			4,773			8,735			9,405			7,472			11,229			13,705
Wealth management and trust income		608			669			704			653			626			1,277			1,221
Other non-interest income		389			392			1,622			918			768			781			1,664
Total non-interest income	$	12,788		$	9,173		$	14,516		$	14,806		$	14,183		$	21,961		$	26,171

Non-interest income for the second quarter of 2020 was $12.8 million, an increase of $3.6 million, or 39.4% compared to $9.2 million for the first quarter of 2020.

During the second quarter of 2020, the Company sold $78.7 million of U.S. government guaranteed loans compared to $61.0 million during the first quarter of 2020. The increase in sales was driven by increased SBA 7(a) origination volumes.

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

	Three Months Ended										Six Months Ended
	June 30,		March 31,		December 31,		September 30,		June 30,		June 30,		June 30,
(dollars in thousands)	2020		2020		2019		2019		2019		2020		2019
NON-INTEREST EXPENSE
Salaries and employee benefits	$	19,405	$	24,666	$	24,228	$	24,537	$	23,652	$	44,071	$	46,544
Occupancy and equipment expense, net		5,359		5,524		5,241		4,512		5,069		10,883		10,018
Loan and lease related expenses		1,260		1,311		2,648		1,949		1,841		2,571		3,418
Legal, audit and other professional fees		2,078		2,334		2,340		4,066		2,981		4,412		5,047
Data processing		2,826		2,665		2,678		4,062		3,849		5,491		6,993
Net loss recognized on other real estate owned and other related expenses		456		519		122		95		252		975		448
Other intangible assets amortization expense		1,892		1,893		2,002		2,003		1,959		3,785		3,732
Other non-interest expense		3,736		4,615		4,435		4,224		4,351		8,351		8,433
Total non-interest expense	$	37,012	$	43,527	$	43,694	$	45,448	$	43,954	$	80,539	$	84,633

Non-interest expense for the second quarter of 2020 was $37.0 million, a decrease of $6.5 million, or 15.0%, from $43.5 million for the first quarter of 2020.

The Company’s efficiency ratio was 53.70% for the second quarter of 2020 compared with 67.16% for the first quarter of 2020.

The Company recorded income tax expense of $3.7 million during the second quarter of 2020, an effective tax rate of 29.0% compared to $1.1 million during the first quarter of 2020, an effective tax rate of 26.1%. The change in the effective tax rate was due to the reversal of tax benefits associated with share-based compensation awards.

Total assets were $6.4 billion at June 30, 2020, an increase of $658.8 million compared to $5.7 billion at March 31, 2020, and an increase of $1.0 billion compared to $5.4 billion at June 30, 2019.

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

	June 30, 2020						March 31, 2020						June 30, 2019
(dollars in thousands)	Amount			% of Total			Amount			% of Total			Amount			% of Total
Originated loans and leases
Commercial real estate	$	919,510			20.9	%	$	839,244			21.7	%	$	721,230			18.7	%
Residential real estate		480,692			10.9	%		480,946			12.5	%		501,038			13.0	%
Construction, land development, and other land		219,261			5.0	%		242,001			6.3	%		196,656			5.1	%
Commercial and industrial		1,200,996			27.4	%		1,263,688			32.7	%		992,313			25.7	%
Paycheck protection program		611,664			13.9	%		—			—			—			—
Installment and other		2,714			0.1	%		4,594			0.1	%		10,937			0.3	%
Leasing financing receivables		160,741			3.7	%		154,173			4.0	%		162,119			4.1	%
Total originated loans and leases	$	3,595,578			81.9	%	$	2,984,646			77.3	%	$	2,584,293			66.9	%
Acquired impaired loans
Commercial real estate	$	126,405			2.9	%	$	127,895			3.3	%	$	151,127			3.9	%
Residential real estate		90,784			2.1	%		94,198			2.5	%		118,534			3.1	%
Construction, land development, and other land		4,784			0.1	%		5,291			0.1	%		4,220			0.1	%
Commercial and industrial		13,485			0.3	%		15,808			0.4	%		20,370			0.5	%
Installment and other		226			0.0	%		236			0.0	%		300			0.0	%
Total acquired impaired loans	$	235,684			5.4	%	$	243,428			6.3	%	$	294,551			7.6	%
Acquired non-impaired loans and leases
Commercial real estate	$	305,041			6.9	%	$	327,820			8.5	%	$	439,182			11.4	%
Residential real estate		99,288			2.2	%		118,853			3.1	%		158,190			4.1	%
Construction, land development, and other land		21,958			0.5	%		30,484			0.8	%		51,072			1.3	%
Commercial and industrial		116,668			2.7	%		135,063			3.5	%		307,887			8.0	%
Installment and other		818			0.0	%		891			0.0	%		1,672			0.0	%
Leasing financing receivables		16,087			0.4	%		19,074			0.5	%		26,301			0.7	%
Total acquired non-impaired loans and leases	$	559,860			12.7	%	$	632,185			16.4	%	$	984,304			25.5	%
Total loans and leases	$	4,391,122			100.0	%	$	3,860,259			100.0	%	$	3,863,148			100.0	%
Allowance for loan and lease losses		(51,300	)					(41,840	)					(31,132	)
Total loans and leases, net of allowance for loan and lease losses	$	4,339,822					$	3,818,419					$	3,832,016

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

	June 30,			March 31,			December 31,			September 30,			June 30,
(dollars in thousands)	2020			2020			2019			2019			2019
Non-performing assets:
Non-accrual loans and leases	$	40,505		$	48,964		$	36,272		$	39,528		$	34,027
Past due loans and leases 90 days or more and still accruing interest		—			—			—			—			996
Accruing troubled debt restructured loans		3,151			1,725			1,771			2,204			1,529
Total non-performing loans and leases		43,656			50,689			38,043			41,732			36,552
Other real estate owned		8,652			9,273			9,896			6,502			6,531
Total non-performing assets	$	52,308		$	59,962		$	47,939		$	48,234		$	43,083
Total non-performing loans and leases as a percentage of total loans and leases		0.99	%		1.31	%		1.00	%		1.09	%		0.95	%
Total non-performing assets as a percentage of total assets		0.82	%		1.05	%		0.87	%		0.89	%		0.80	%
Allowance for loan and lease losses as a percentage of non-performing loans and leases		117.51	%		82.54	%		83.95	%		75.68	%		85.17	%

Non-performing assets guaranteed by U.S. government:
Non-accrual loans guaranteed	$	3,755		$	4,957		$	4,232		$	4,167		$	4,723
Past due loans 90 days or more and still accruing interest guaranteed		—			—			—			—			—
Accruing troubled debt restructured loans guaranteed		—			—			—			—			—
Total non-performing loans guaranteed	$	3,755		$	4,957		$	4,232		$	4,167		$	4,723
Total non-performing loans and leases not guaranteed as a percentage of total loans and leases		0.91	%		1.18	%		0.89	%		0.98	%		0.82	%
Total non-performing assets not guaranteed as a percentage of total assets		0.76	%		0.96	%		0.79	%		0.81	%		0.71	%

U.S. government guaranteed balances of non-performing loans were $3.8 million at June 30, 2020 and $5.0 million at March 31, 2020.

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

The allowance for loan and lease losses as a percentage of total loans and leases held for investment increased to 1.17% at June 30, 2020 compared to 1.08% at March 31, 2020 and 0.81% at June 30, 2019.

In June 2016, the Financial Accounting Standards Board (“FASB”) issued new guidance on the recognition of credit losses which replaces the incurred loss impairment methodology with a methodology that reflects expected credit losses. In November 2019, the FASB delayed the effective date of the standard for smaller reporting companies, which includes emerging growth companies. Assuming the Company remains an emerging growth company, the standard is effective for fiscal years beginning after December 15, 2022. The Company is in the process of implementation and determining the impact that this new authoritative guidance will have on the Company’s consolidated financial statements.

Net charge-offs during the second quarter of 2020 were $6.1 million, or 0.57% of average loans and leases, on an annualized basis, an increase of $1.5 million compared to $4.6 million, or 0.48% of average loans and leases, during the first quarter of 2020, and an increase of $3.7 million from $2.4 million, or 0.25%, for the comparable quarter one year ago.

The net charge-offs during the quarter were primarily attributed to commercial and industrial loans. Net charge-offs for the second quarter of 2020 included $2.0 million in the unguaranteed portion of U.S. government guaranteed loans, while net charge-offs for the first quarter of 2020 included $3.4 million and second quarter of 2019 included $2.3 million in the unguaranteed portion of U.S. government guaranteed loans.

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

Total deposits were $5.0 billion at June 30, 2020, an increase of $719.5 million compared to March 31, 2020, an increase of 17.0%. Non-interest-bearing deposits were 35.7% of total deposits at June 30, 2020 compared to 30.5% at March 31, 2020.

Total borrowings and other liabilities were $654.2 million at June 30, 2020, a decrease of $79.0 million from $733.3 million at March 31, 2020.

Total stockholders’ equity was $780.9 million at June 30, 2020, an increase of $18.3 million from $762.7 million at March 31, 2020. The increase was due to the increase in accumulated other comprehensive income reflecting the unrealized gains in our available-for-sale securities portfolio in addition to net income generated during the quarter less dividends declared.

The following table presents the actual regulatory capital dollar amounts and ratios of the Company and Byline Bank as of June 30, 2020:

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

On June 26, 2020, the Company completed a public offering of $50.0 million aggregate principal amount of 6.00% fixed-to-floating rate subordinated notes due July 1, 2030. The subordinated notes bear a fixed interest rate of 6.00% until July 1, 2025 and a floating interest rate equal to a benchmark rate, which is expected to be three-month term SOFR plus 588 basis points thereafter until maturity. The subordinated notes are intended to qualify as Tier 2 capital for regulatory capital purposes.

The Company will host a conference call and webcast at 9:00 a.m. Central Time (10:00 a.m. Eastern Time) on Friday, July 24, 2020 to discuss its quarterly financial results. Analysts and investors may participate in the question-and-answer session. The call can be accessed via telephone at (877) 512-8755. A recorded replay can be accessed through August 7, 2020 by dialing (877) 344-7529; passcode: 10146069.

A slide presentation relating to the second quarter 2020 results will be accessible prior to the scheduled conference call. The slide presentation and webcast of the conference call can be accessed on the News and Events page of the Company’s investor relations website at www.bylinebancorp.com.

Headquartered in Chicago, Byline Bancorp, Inc. is the parent company for Byline Bank, a full service commercial bank serving small- and medium-sized businesses, financial sponsors, and consumers. Byline Bank has approximately $6.4 billion in assets and operates more than 50 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.

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, non-interest income to total revenues, adjusted return on average stockholders’ equity, adjusted return on average assets, pre-tax pre-provision return on average assets, adjusted pre-tax pre-provision return on average assets, tangible book value per common share, tangible common equity to tangible assets, return on average tangible common stockholders' equity, and adjusted return on average tangible common stockholders' equity. Management believes that these non-GAAP financial measures provide useful information to management and investors that is supplementary to the Company’s financial condition, results of operations and cash flows computed in accordance with GAAP; however, management acknowledges that our non-GAAP financial measures have a number of limitations. As such, these disclosures should not be viewed as a substitute for results determined in accordance with GAAP financial measures that we and other companies use. Management also uses these measures for peer comparison. See “Reconciliation of Non-GAAP Financial Measures” in the financial schedules included in this press release for a reconciliation of the non-GAAP financial measures to the comparable GAAP financial measures. Additionally, please refer to the Company’s Annual Report on Form 10-K for the detailed definitions of these non-GAAP financial measures.

Certain risks and important factors that could affect Byline’s future results are identified in its Annual Report on Form 10-K and other reports filed with the Securities and Exchange Commission, including among other things under the heading “Risk Factors” in its Annual Report on Form 10-K for the year ended December 31, 2019, and its Quarterly Report on Form 10-Q for the quarter ended March 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.

	June 30,			March 31,			December 31,			September 30,			June 30,
(dollars in thousands)	2020			2020			2019			2019			2019
ASSETS
Cash and due from banks	$	51,818		$	45,233		$	48,228		$	75,275		$	57,513
Interest bearing deposits with other banks		88,113			74,386			32,509			33,564			31,802
Cash and cash equivalents		139,931			119,619			80,737			108,839			89,315
Equity and other securities, at fair value		8,181			7,413			8,031			7,648			7,662
Securities available-for-sale, at fair value		1,426,871			1,299,483			1,186,292			1,031,933			969,029
Securities held-to-maturity, at amortized cost		4,404			4,408			4,412			4,417			4,421
Restricted stock, at cost		6,232			24,197			22,127			24,331			22,937
Loans held for sale		3,031			13,299			11,732			7,176			18,473
Loans and leases:
Loans and leases		4,391,122			3,860,259			3,785,661			3,831,090			3,863,148
Allowance for loan and lease losses		(51,300	)		(41,840	)		(31,936	)		(31,585	)		(31,132	)
Net loans and leases		4,339,822			3,818,419			3,753,725			3,799,505			3,832,016
Servicing assets, at fair value		18,351			17,800			19,471			19,939			19,760
Premises and equipment, net		95,546			96,446			96,140			96,006			96,588
Other real estate owned, net		8,652			9,273			9,896			6,502			6,531
Goodwill and other intangible assets, net		176,470			178,362			180,255			179,543			181,546
Bank-owned life insurance		9,896			9,898			9,750			9,699			9,634
Deferred tax assets, net		37,082			33,845			38,315			33,388			35,737
Accrued interest receivable and other assets		119,049			102,292			100,926			109,352			97,587
Total assets	$	6,393,518		$	5,734,754		$	5,521,809		$	5,438,278		$	5,391,236
LIABILITIES AND STOCKHOLDERS’ EQUITY
LIABILITIES
Non-interest-bearing demand deposits	$	1,768,675		$	1,290,896		$	1,279,641		$	1,221,431		$	1,240,375
Interest-bearing deposits		3,189,670			2,947,940			2,867,936			2,858,883			2,819,868
Total deposits		4,958,345			4,238,836			4,147,577			4,080,314			4,060,243
Other borrowings		510,414			640,647			539,638			538,290			532,885
Subordinated notes, net		48,777			—			—			—			—
Junior subordinated debentures issued to capital trusts, net		36,206			37,462			37,334			37,207			37,059
Accrued expenses and other liabilities		58,841			55,142			47,145			46,601			43,374
Total liabilities		5,612,583			4,972,087			4,771,694			4,702,412			4,673,561
STOCKHOLDERS’ EQUITY
Preferred stock		10,438			10,438			10,438			10,438			10,438
Common stock		381			380			379			378			378
Additional paid-in capital		583,307			582,517			580,965			579,564			578,828
Retained earnings		168,444			160,652			159,033			144,525			129,379
Treasury stock		(1,668	)		(1,668	)		—			—			—
Accumulated other comprehensive income (loss), net of tax		20,033			10,348			(700	)		961			(1,348	)
Total stockholders’ equity		780,935			762,667			750,115			735,866			717,675
Total liabilities and stockholders’ equity	$	6,393,518		$	5,734,754		$	5,521,809		$	5,438,278		$	5,391,236

	Three Months Ended															Six Months Ended
	June 30,			March 31,			December 31,			September 30,			June 30,			June 30,			June 30,
(dollars in thousands, except per share data)	2020			2020			2019			2019			2019			2020			2019
INTEREST AND DIVIDEND INCOME
Interest and fees on loans and leases	$	50,153		$	54,158		$	58,203		$	63,391		$	59,524		$	104,311		$	113,907
Interest on securities		7,530			8,016			7,212			7,040			6,665			15,546			12,767
Other interest and dividend income		222			992			500			598			571			1,214			1,196
Total interest and dividend income		57,905			63,166			65,915			71,029			66,760			121,071			127,870
INTEREST EXPENSE
Deposits		4,246			7,804			9,325			9,618			9,306			12,050			17,382
Other borrowings		476			1,897			1,989			2,835			2,265			2,373			4,431
Subordinated notes and debentures		574			640			687			738			741			1,214			1,524
Total interest expense		5,296			10,341			12,001			13,191			12,312			15,637			23,337
Net interest income		52,609			52,825			53,914			57,838			54,448			105,434			104,533
PROVISION FOR LOAN AND LEASE LOSSES		15,518			14,455			4,387			5,931			6,391			29,973			10,390
Net interest income after provision for loan and lease losses		37,091			38,370			49,527			51,907			48,057			75,461			94,143
NON-INTEREST INCOME
Fees and service charges on deposits		1,455			1,673			1,635			1,612			1,441			3,128			3,211
Loan servicing revenue		2,980			2,758			2,834			2,692			2,630			5,738			5,169
Loan servicing asset revaluation		(711	)		(3,064	)		(2,545	)		(1,610	)		(1,223	)		(3,775	)		(2,484	)
ATM and interchange fees		845			1,216			1,150			973			945			2,061			1,662
Net gains on sales of securities available-for-sale		—			1,375			—			178			973			1,375			973
Change in fair value of equity securities, net		766			(619	)		381			(15	)		551			147			1,050
Net gains on sales of loans		6,456			4,773			8,735			9,405			7,472			11,229			13,705
Wealth management and trust income		608			669			704			653			626			1,277			1,221
Other non-interest income		389			392			1,622			918			768			781			1,664
Total non-interest income		12,788			9,173			14,516			14,806			14,183			21,961			26,171
NON-INTEREST EXPENSE
Salaries and employee benefits		19,405			24,666			24,228			24,537			23,652			44,071			46,544
Occupancy and equipment expense, net		5,359			5,524			5,241			4,512			5,069			10,883			10,018
Loan and lease related expenses		1,260			1,311			2,648			1,949			1,841			2,571			3,418
Legal, audit, and other professional fees		2,078			2,334			2,340			4,066			2,981			4,412			5,047
Data processing		2,826			2,665			2,678			4,062			3,849			5,491			6,993
Net loss recognized on other real estate owned and other related expenses		456			519			122			95			252			975			448
Other intangible assets amortization expense		1,892			1,893			2,002			2,003			1,959			3,785			3,732
Other non-interest expense		3,736			4,615			4,435			4,224			4,351			8,351			8,433
Total non-interest expense		37,012			43,527			43,694			45,448			43,954			80,539			84,633
INCOME BEFORE PROVISION FOR INCOME TAXES		12,867			4,016			20,349			21,265			18,286			16,883			35,681
PROVISION FOR INCOME TAXES		3,728			1,050			4,497			5,923			5,075			4,778			9,873
NET INCOME		9,139			2,966			15,852			15,342			13,211			12,105			25,808
Dividends on preferred shares		195			196			196			196			195			391			391
INCOME AVAILABLE TO COMMON STOCKHOLDERS	$	8,944		$	2,770		$	15,656		$	15,146		$	13,016		$	11,714		$	25,417
EARNINGS PER COMMON SHARE
Basic	$	0.24		$	0.07		$	0.41		$	0.40		$	0.35		$	0.31		$	0.69
Diluted	$	0.24		$	0.07		$	0.41		$	0.39		$	0.34		$	0.31		$	0.68

	As of or For the Three Months Ended															As of or For the Six Months Ended
(dollars in thousands, except share and	June 30,			March 31,			December 31,			September 30,			June 30,			June 30,			June 30,
per share data)	2020			2020			2019			2019			2019			2020			2019
Common Share Data
Basic earnings per common share	$	0.24		$	0.07		$	0.41		$	0.40		$	0.35		$	0.31		$	0.69
Diluted earnings per common share	$	0.24		$	0.07		$	0.41		$	0.39		$	0.34		$	0.31		$	0.68
Adjusted diluted earnings per common share^(2)(3)(4)	$	0.24		$	0.09		$	0.42		$	0.41		$	0.41		$	0.32		$	0.79
Weighted average common shares outstanding (basic)		37,919,480			37,943,333			37,872,835			37,831,356			37,263,352			37,931,406			36,719,436
Weighted average common shares outstanding (diluted)		38,027,289			38,663,658			38,537,899			38,487,180			37,948,006			38,350,064			37,445,407
Common shares outstanding		38,388,217			38,383,021			38,256,500			38,169,126			38,115,219			38,388,217			38,115,219
Cash dividends per common share	$	0.03		$	0.03		$	0.03		N/A			N/A			$	0.06		N/A
Dividend payout ratio on common stock		12.50	%		42.86	%		7.32	%	N/A			N/A				19.35	%	N/A
Tangible book value per common share⁽¹⁾	$	15.47		$	14.95		$	14.62		$	14.30		$	13.79		$	15.47		$	13.79

Key Ratios and Performance Metrics (annualized where applicable)
Net interest margin		3.71	%		4.17	%		4.32	%		4.62	%		4.51	%		3.93	%		4.47	%
Average cost of deposits		0.36	%		0.75	%		0.88	%		0.94	%		0.92	%		0.54	%		0.90	%
Efficiency ratio⁽²⁾		53.70	%		67.16	%		60.93	%		59.81	%		61.19	%		60.25	%		61.90	%
Adjusted efficiency ratio^(1)(2)(3)		53.70	%		66.00	%		60.51	%		58.17	%		56.02	%		59.69	%		57.70	%
Non-interest expense to average assets		2.41	%		3.15	%		3.19	%		3.32	%		3.34	%		2.76	%		3.33	%
Adjusted non-interest expense to average assets⁽¹⁾⁽³⁾		2.41	%		3.09	%		3.17	%		3.23	%		3.07	%		2.73	%		3.12	%
Return on average stockholders' equity		4.74	%		1.56	%		8.43	%		8.34	%		7.60	%		3.16	%		7.67	%
Adjusted return on average stockholders' equity^(1)(3)(4)		4.74	%		1.83	%		8.54	%		8.78	%		9.16	%		3.29	%		8.90	%
Return on average assets		0.59	%		0.21	%		1.16	%		1.12	%		1.00	%		0.41	%		1.02	%
Adjusted return on average assets^(1)(3)(4)		0.59	%		0.25	%		1.17	%		1.18	%		1.21	%		0.43	%		1.18	%
Non-interest income to total revenues⁽¹⁾		19.56	%		14.79	%		21.21	%		20.38	%		20.67	%		17.24	%		20.02	%
Pre-tax pre-provision return on average assets⁽¹⁾		1.85	%		1.33	%		1.81	%		1.98	%		1.88	%		1.60	%		1.81	%
Adjusted pre-tax pre-provision return on average assets⁽¹⁾⁽³⁾		1.85	%		1.39	%		1.83	%		2.07	%		2.15	%		1.63	%		2.03	%
Return on average tangible common stockholders' equity⁽¹⁾		7.05	%		2.89	%		12.20	%		12.22	%		11.32	%		4.99	%		11.35	%
Adjusted return on average tangible common stockholders' equity⁽¹⁾⁽³⁾		7.05	%		3.25	%		12.35	%		12.82	%		13.44	%		5.17	%		13.00	%
Non-interest-bearing deposits to total deposits		35.67	%		30.45	%		30.85	%		29.93	%		30.55	%		35.67	%		30.55	%
Loans and leases held for sale and loans and lease held for investment to total deposits		88.62	%		91.38	%		91.56	%		94.07	%		95.60	%		88.62	%		95.60	%
Deposits to total liabilities		88.34	%		85.25	%		86.92	%		86.77	%		86.88	%		88.34	%		86.88	%
Deposits per branch	$	86,989		$	74,366		$	67,993		$	66,890		$	66,561		$	86,989		$	66,561

Asset Quality Ratios
Non-performing loans and leases to total loans and leases held for investment, net before ALLL		0.99	%		1.31	%		1.00	%		1.09	%		0.95	%		0.99	%		0.95	%
ALLL to total loans and leases held for investment, net before ALLL		1.17	%		1.08	%		0.84	%		0.82	%		0.81	%		1.17	%		0.81	%
Net charge-offs to average total loans and leases held for investment, net before ALLL		0.57	%		0.48	%		0.42	%		0.56	%		0.25	%		0.53	%		0.25	%
Acquisition accounting adjustments⁽⁴⁾	$	19,324		$	25,889		$	28,511		$	31,053		$	37,109		$	19,324		$	37,109

Capital Ratios
Common equity to total assets		12.05	%		13.12	%		13.40	%		13.34	%		13.12	%		12.05	%		13.12	%
Tangible common equity to tangible assets⁽¹⁾		9.55	%		10.33	%		10.47	%		10.38	%		10.09	%		9.55	%		10.09	%
Leverage ratio		10.29	%		11.18	%		11.39	%		11.14	%		11.09	%		10.29	%		11.09	%
Common equity tier 1 capital ratio		12.33	%		12.24	%		12.36	%		12.12	%		11.65	%		12.33	%		11.65	%
Tier 1 capital ratio		13.56	%		13.52	%		13.67	%		13.43	%		12.96	%		13.56	%		12.96	%
Total capital ratio		15.86	%		14.50	%		14.43	%		14.19	%		13.71	%		15.86	%		13.71	%

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

	For the Three Months Ended June 30,
	2020								2019
(dollars in thousands)	Average Balance⁽⁵⁾			Interest Inc / Exp		Average Yield / Rate			Average Balance⁽⁵⁾			Interest Inc / Exp		Average Yield / Rate
ASSETS
Cash and cash equivalents	$	58,971		$	25		0.17	%	$	35,346		$	245		2.78	%
Loans and leases⁽¹⁾		4,283,654			50,153		4.71	%		3,759,634			59,524		6.35	%
Taxable securities		1,243,604			7,021		2.27	%		975,693			6,563		2.70	%
Tax-exempt securities⁽²⁾		117,340			706		2.42	%		68,314			428		2.52	%
Total interest-earning assets	$	5,703,569		$	57,905		4.08	%	$	4,838,987		$	66,760		5.53	%
Allowance for loan and lease losses		(43,009	)							(28,203	)
All other assets		526,414								464,036
TOTAL ASSETS	$	6,186,974							$	5,274,820
LIABILITIES AND STOCKHOLDERS’ EQUITY
Deposits
Interest checking	$	392,070		$	165		0.17	%	$	333,725		$	452		0.54	%
Money market accounts		1,214,713			946		0.31	%		695,986			1,790		1.03	%
Savings		511,049			61		0.05	%		477,775			118		0.10	%
Time deposits		976,710			3,074		1.27	%		1,278,488			6,946		2.18	%
Total interest-bearing deposits		3,094,542			4,246		0.55	%		2,785,974			9,306		1.34	%
Other borrowings		534,766			476		0.36	%		462,841			2,265		1.96	%
Subordinated notes and debentures		40,180			574		5.75	%		36,963			741		8.04	%
Total borrowings		574,946			1,050		0.73	%		499,804			3,006		2.41	%
Total interest-bearing liabilities	$	3,669,488		$	5,296		0.58	%	$	3,285,778		$	12,312		1.50	%
Non-interest-bearing demand deposits		1,692,723								1,254,173
Other liabilities		48,884								37,941
Total stockholders’ equity		775,879								696,928
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY	$	6,186,974							$	5,274,820
Net interest spread⁽³⁾							3.50	%							4.03	%
Net interest income				$	52,609							$	54,448
Net interest margin⁽⁴⁾							3.71	%							4.51	%

Net loan accretion impact on margin				$	3,172		0.22	%				$	4,868		0.40	%

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

	For the Six Months Ended June 30,
	2020								2019
(dollars in thousands)	Average Balance⁽⁵⁾			Interest Inc / Exp		Average Yield / Rate			Average Balance⁽⁵⁾			Interest Inc / Exp		Average Yield / Rate
ASSETS
Cash and cash equivalents	$	48,952		$	182		0.75	%	$	50,969		$	546		2.16	%
Loans and leases⁽¹⁾		4,041,433			104,311		5.19	%		3,647,427			113,907		6.30	%
Taxable securities		1,209,362			15,337		2.55	%		951,048			12,646		2.68	%
Tax-exempt securities⁽²⁾		101,010			1,241		2.47	%		61,792			771		2.52	%
Total interest-earning assets	$	5,400,757		$	121,071		4.51	%	$	4,711,236		$	127,870		5.47	%
Allowance for loan and lease losses		(38,336	)							(26,786	)
All other assets		514,042								435,672
TOTAL ASSETS	$	5,876,463							$	5,120,122
LIABILITIES AND STOCKHOLDERS’ EQUITY
Deposits
Interest checking	$	365,487		$	425		0.23	%	$	313,499		$	866		0.56	%
Money market accounts		1,088,459			3,160		0.58	%		654,723			3,249		1.00	%
Savings		495,660			122		0.05	%		474,509			257		0.11	%
Time deposits		1,045,153			8,343		1.61	%		1,237,182			13,010		2.12	%
Total interest-bearing deposits		2,994,759			12,050		0.81	%		2,679,913			17,382		1.31	%
Other borrowings		527,937			2,373		0.90	%		465,325			4,431		1.92	%
Subordinated notes and debentures		38,782			1,214		6.88	%		36,890			1,524		8.33	%
Total borrowings		566,719			3,587		1.27	%		502,215			5,955		2.39	%
Total interest-bearing liabilities	$	3,561,478		$	15,637		0.88	%	$	3,182,128		$	23,337		1.48	%
Non-interest-bearing demand deposits		1,495,761								1,220,266
Other liabilities		48,571								39,582
Total stockholders’ equity		770,653								678,146
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY	$	5,876,463							$	5,120,122
Net interest spread⁽³⁾							3.63	%							3.99	%
Net interest income				$	105,434							$	104,533
Net interest margin⁽⁴⁾							3.93	%							4.47	%

Net loan accretion impact on margin				$	6,843		0.25	%				$	10,069		0.43	%

	As of or For the Three Months Ended														As of or For the Six Months Ended
(dollars in thousands, except per share data)	June 30, 2020		March 31, 2020			December 31, 2019			September 30, 2019			June 30, 2019			June 30, 2020			June 30, 2019
Net income and earnings per share excluding significant items
Reported Net Income	$	9,139	$	2,966		$	15,852		$	15,342		$	13,211		$	12,105		$	25,808
Significant items:
Impairment charges on assets held for sale		—		715			111			67			—			715			392
Merger-related expense		—		—			127			1,043			3,152			—			3,170
Core system conversion expense		—		—			48			77			394			—			1,924
Tax benefit on impairment charges and merger-related expenses		—		(199	)		(79	)		(369	)		(842	)		(199	)		(1,382	)
Adjusted Net Income	$	9,139	$	3,482		$	16,059		$	16,160		$	15,915		$	12,621		$	29,912
Reported Diluted Earnings per Share	$	0.24	$	0.07		$	0.41		$	0.39		$	0.34		$	0.31		$	0.68
Significant items:
Impairment charges on assets held for sale		—		0.02			—			—			—			0.02			0.01
Merger-related expense		—		—			0.01			0.03			0.08			—			0.09
Core system conversion expense		—		—			—			—			0.01			—			0.05
Tax benefit on impairment charges and merger-related expenses		—		—			—			(0.01	)		(0.02	)		(0.01	)		(0.04	)
Adjusted Diluted Earnings per Share	$	0.24	$	0.09		$	0.42		$	0.41		$	0.41		$	0.32		$	0.79

	As of or For the Three Months Ended														As of or For the Six Months Ended
(dollars in thousands, except per share data, ratios annualized, where applicable)	June 30, 2020		March 31, 2020			December 31, 2019			September 30, 2019			June 30, 2019			June 30, 2020			June 30, 2019
Adjusted non-interest expense:
Non-interest expense	$	37,012	$	43,527		$	43,694		$	45,448		$	43,954		$	80,539		$	84,633
Less: Significant items
Impairment charges on assets held for sale		—		715			111			67			—			715			392
Merger-related expense		—		—			127			1,043			3,152			—			3,170
Core system conversion expense		—		—			48			77			394			—			1,924
Adjusted non-interest expense	$	37,012	$	42,812		$	43,408		$	44,261		$	40,408		$	79,824		$	79,147
Adjusted non-interest expense excluding amortization of intangible assets:
Adjusted non-interest expense	$	37,012	$	42,812		$	43,408		$	44,261		$	40,408		$	79,824		$	79,147
Less: Amortization of intangible assets		1,892		1,893			2,002			2,003			1,959			3,785			3,732
Adjusted non-interest expense excluding amortization of intangible assets	$	35,120	$	40,919		$	41,406		$	42,258		$	38,449		$	76,039		$	75,415
Pre-tax pre-provision net income:
Pre-tax income	$	12,867	$	4,016		$	20,349		$	21,265		$	18,286		$	16,883		$	35,681
Add: Provision for loan and lease losses		15,518		14,455			4,387			5,931			6,391			29,973			10,390
Pre-tax pre-provision net income	$	28,385	$	18,471		$	24,736		$	27,196		$	24,677		$	46,856		$	46,071
Adjusted pre-tax pre-provision net income:
Pre-tax pre-provision net income	$	28,385	$	18,471		$	24,736		$	27,196		$	24,677		$	46,856		$	46,071
Impairment charges on assets held for sale		—		715			111			67			—			715			392
Merger-related expense		—		—			127			1,043			3,152			—			3,170
Core system conversion expense		—		—			48			77			394			—			1,924
Adjusted pre-tax pre-provision net income	$	28,385	$	19,186		$	25,022		$	28,383		$	28,223		$	47,571		$	51,557
Total revenues:
Net interest income	$	52,609	$	52,825		$	53,914		$	57,838		$	54,448		$	105,434		$	104,533
Add: Non-interest income		12,788		9,173			14,516			14,806			14,183			21,961			26,171
Total revenues	$	65,397	$	61,998		$	68,430		$	72,644		$	68,631		$	127,395		$	130,704
Tangible common stockholders' equity:
Total stockholders' equity	$	780,935	$	762,667		$	750,115		$	735,866		$	717,675		$	780,935		$	717,675
Less: Preferred stock		10,438		10,438			10,438			10,438			10,438			10,438			10,438
Less: Goodwill and other intangibles		176,470		178,362			180,255			179,543			181,546			176,470			181,546
Tangible common stockholders' equity	$	594,027	$	573,867		$	559,422		$	545,885		$	525,691		$	594,027		$	525,691
Tangible assets:
Total assets	$	6,393,518	$	5,734,754		$	5,521,809		$	5,438,278		$	5,391,236		$	6,393,518		$	5,391,236
Less: Goodwill and other intangibles		176,470		178,362			180,255			179,543			181,546			176,470			181,546
Tangible assets	$	6,217,048	$	5,556,392		$	5,341,554		$	5,258,735		$	5,209,690		$	6,217,048		$	5,209,690
Average tangible common stockholders' equity:
Average total stockholders' equity	$	775,879	$	765,427		$	745,745		$	729,781		$	696,928		$	770,653		$	678,146
Less: Average preferred stock		10,438		10,438			10,438			10,438			10,438			10,438			10,438
Less: Average goodwill and other intangibles		177,440		179,416			179,192			180,740			175,236			178,428			168,120
Average tangible common stockholders' equity	$	588,001	$	575,573		$	556,115		$	538,603		$	511,254		$	581,787		$	499,588
Average tangible assets:
Average total assets	$	6,186,974	$	5,565,952		$	5,427,046		$	5,435,762		$	5,274,820		$	5,876,463		$	5,120,122
Less: Average goodwill and other intangibles		177,440		179,416			179,192			180,740			175,236			178,428			168,120
Average tangible assets	$	6,009,534	$	5,386,536		$	5,247,854		$	5,255,022		$	5,099,584		$	5,698,035		$	4,952,002
Tangible net income available to common stockholders:
Net income available to common stockholders	$	8,944	$	2,770		$	15,656		$	15,146		$	13,016		$	11,714		$	25,417
Add: After-tax intangible asset amortization		1,365		1,366			1,445			1,445			1,413			2,731			2,692
Tangible net income available to common stockholders	$	10,309	$	4,136		$	17,101		$	16,591		$	14,429		$	14,445		$	28,109
Adjusted tangible net income available to common stockholders:
Tangible net income available to common stockholders	$	10,309	$	4,136		$	17,101		$	16,591		$	14,429		$	14,445		$	28,109
Impairment charges on assets held for sale		—		715			111			67			—			715			392
Merger-related expense		—		—			127			1,043			3,152			—			3,170
Core system conversion expense		—		—			48			77			394			—			1,924
Tax benefit on significant items		—		(199	)		(79	)		(369	)		(842	)		(199	)		(1,382	)
Adjusted tangible net income available to common stockholders	$	10,309	$	4,652		$	17,308		$	17,409		$	17,133		$	14,961		$	32,213

	As of or For the Three Months Ended															As of or For the Six Months Ended
(dollars in thousands, except share and per share data, ratios annualized, where applicable)	June 30, 2020			March 31, 2020			December 31, 2019			September 30, 2019			June 30, 2019			June 30, 2020			June 30, 2019
Pre-tax pre-provision return on average assets:
Pre-tax pre-provision net income	$	28,385		$	18,471		$	24,736		$	27,196		$	24,677		$	46,856		$	46,071
Average total assets		6,186,974			5,565,952			5,427,046			5,435,762			5,274,820			5,876,463			5,120,122
Pre-tax pre-provision return on average assets		1.85	%		1.33	%		1.81	%		1.98	%		1.88	%		1.60	%		1.81	%
Adjusted pre-tax pre-provision return on average assets:
Adjusted pre-tax pre-provision net income	$	28,385		$	19,186		$	25,022		$	28,383		$	28,223		$	47,571		$	51,557
Average total assets		6,186,974			5,565,952			5,427,046			5,435,762			5,274,820			5,876,463			5,120,122
Adjusted pre-tax pre-provision return on average assets		1.85	%		1.39	%		1.83	%		2.07	%		2.15	%		1.63	%		2.03	%
Non-interest income to total revenues:
Non-interest income	$	12,788		$	9,173		$	14,516		$	14,806		$	14,183		$	21,961		$	26,171
Total revenues		65,397			61,998			68,430			72,644			68,631			127,395			130,704
Non-interest income to total revenues		19.56	%		14.79	%		21.21	%		20.38	%		20.67	%		17.24	%		20.02	%
Adjusted non-interest expense to average assets:
Adjusted non-interest expense	$	37,012		$	42,812		$	43,408		$	44,261		$	40,408		$	79,824		$	79,147
Average total assets		6,186,974			5,565,952			5,427,046			5,435,762			5,274,820			5,876,463			5,120,122
Adjusted non-interest expense to average assets		2.41	%		3.09	%		3.17	%		3.23	%		3.07	%		2.73	%		3.12	%
Adjusted efficiency ratio:
Adjusted non-interest expense excluding amortization of intangible assets	$	35,120		$	40,919		$	41,406		$	42,258		$	38,449		$	76,039		$	75,415
Total revenues		65,397			61,998			68,430			72,644			68,631			127,395			130,704
Adjusted efficiency ratio		53.70	%		66.00	%		60.51	%		58.17	%		56.02	%		59.69	%		57.70	%
Adjusted return on average assets:
Adjusted net income	$	9,139		$	3,482		$	16,059		$	16,160		$	15,915		$	12,621		$	29,912
Average total assets		6,186,974			5,565,952			5,427,046			5,435,762			5,274,820			5,876,463			5,120,122
Adjusted return on average assets		0.59	%		0.25	%		1.17	%		1.18	%		1.21	%		0.43	%		1.18	%
Adjusted return on average stockholders' equity:
Adjusted net income	$	9,139		$	3,482		$	16,059		$	16,160		$	15,915		$	12,621		$	29,912
Average stockholders' equity		775,879			765,427			745,745			729,781			696,928			770,653			678,146
Adjusted return on average stockholders' equity		4.74	%		1.83	%		8.54	%		8.78	%		9.16	%		3.29	%		8.90	%
Tangible common equity to tangible assets:
Tangible common equity	$	594,027		$	573,867		$	559,422		$	545,885		$	525,691		$	594,027		$	525,691
Tangible assets		6,217,048			5,556,392			5,341,554			5,258,735			5,209,690			6,217,048			5,209,690
Tangible common equity to tangible assets		9.55	%		10.33	%		10.47	%		10.38	%		10.09	%		9.55	%		10.09	%
Return on average tangible common stockholders' equity:
Tangible net income available to common stockholders	$	10,309		$	4,136		$	17,101		$	16,591		$	14,429		$	14,445		$	28,109
Average tangible common stockholders' equity		588,001			575,573			556,115			538,603			511,254			581,787			499,588
Return on average tangible common stockholders' equity		7.05	%		2.89	%		12.20	%		12.22	%		11.32	%		4.99	%		11.35	%
Adjusted return on average tangible common stockholders' equity:
Adjusted tangible net income available to common stockholders	$	10,309		$	4,652		$	17,308		$	17,409		$	17,133		$	14,961		$	32,213
Average tangible common stockholders' equity		588,001			575,573			556,115			538,603			511,254			581,787			499,588
Adjusted return on average tangible common stockholders' equity		7.05	%		3.25	%		12.35	%		12.82	%		13.44	%		5.17	%		13.00	%
Tangible book value per share:
Tangible common equity	$	594,027		$	573,867		$	559,422		$	545,885		$	525,691		$	594,027		$	525,691
Common shares outstanding		38,388,217			38,383,021			38,256,500			38,169,126			38,115,219			38,388,217			38,115,219
Tangible book value per share	$	15.47		$	14.95		$	14.62		$	14.30		$	13.79		$	15.47		$	13.79

Chicago, IL, July 23, 2020 – Byline Bancorp, Inc. (NYSE: BY) announced today that Owen Beacom, Chief Credit Officer of Byline Bancorp and Byline Bank, has informed the Company of his intention to retire effective August 14, 2020. Mark Fucinato, currently Senior Vice President and Senior Credit Officer at Byline Bank, will succeed Mr. Beacom as Chief Credit Officer. Mr. Fucinato has more than 33 years of experience in the banking industry and joined Byline in August 2019. Mr. Beacom will remain as an advisor to the Company to assist in the transition.

“We are very appreciative of the valuable service that Owen provided during his time at Byline and will continue to benefit from his knowledge and experience through his role as an advisor to the Company through this transition,” said Alberto Paracchini, President and Chief Executive Officer. “Mark is a highly experienced credit officer with a deep understanding of our markets, customer base, and the strong credit culture we have built at Byline. Mark has played a critical role in establishing and implementing the policies and procedures we have utilized to understand the level of impact that the COVID-19 pandemic has had on our borrowers, developing appropriate support programs to help them manage through this crisis, and ensuring that we are appropriately reserved. We believe that Mark is an excellent addition to our management team and is well suited to lead our credit administration function during a challenging time.”

Mr. Fucinato joined Byline in August 2019, after serving as Senior Credit Officer at MB Financial Bank since 2016. From 2010 to 2016, Mr. Fucinato served as Senior Credit Officer with FirstMerit Bank. From 2007 to 2010, Mr. Fucinato served as Senior Credit Executive at JP Morgan Chase, after serving as Senior Vice President of the Special Credits Group from 2004 to 2007. Before that, Mr. Fucinato served as Senior Vice President at the Managed Assets Department of Bank One, from 1999 to 2004, after holding several positions at American National Bank from 1987 to 1999. Mr. Fucinato holds a Bachelor of Arts Degree from the University of Buffalo, and a Juris Doctor degree from Northern Illinois University College of Law.

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.


001-38139		36-3012593
(Commission File Number)		(I.R.S. Employer Identification No.)

180 North LaSalle Street, Suite 300
Chicago, Illinois		60601
(Address of Principal Executive Offices)		(Zip Code)


Title of each class	Trading Symbol(s)	Name of each exchange on which registered
Common Stock	BY	New York Stock Exchange


Exhibit No.		Description

99.1		Second Quarter 2020 Financial Results Press Release, dated July 23, 2020
99.2		Press release dated July 23, 2020, announcing the retirement of Mr. Beacom and appointment of Mr. Fucinato

	PPP Loan Size
				Over $150,000 -
(dollars in thousands)	$0 - $150,000			$2,000,000			Over $2,000,000			Total
Principal outstanding	$	119,736		$	422,218		$	84,639		$	626,593
Unearned processing fee		(5,335	)		(13,662	)		(730	)		(19,727	)
Deferred costs		3,499			1,263			36			4,798
Carrying value	$	117,900		$	409,819		$	83,945		$	611,664
Number of loans		2,628			949			27			3,604

	Actual					Minimum Capital Required					Required to be Considered Well Capitalized
June 30, 2020	Amount		Ratio			Amount		Ratio			Amount		Ratio
Total capital to risk weighted assets:
Company	$	712,081		15.86	%	$	359,161		8.00	%	N/A		N/A
Bank		635,920		14.21	%		358,043		8.00	%	$	447,554		10.00	%
Tier 1 capital to risk weighted assets:
Company	$	608,931		13.56	%	$	269,371		6.00	%	N/A		N/A
Bank		582,770		13.02	%		268,532		6.00	%	$	358,043		8.00	%
Common Equity Tier 1 (CET1) to risk weighted assets:
Company	$	553,493		12.33	%	$	202,028		4.50	%	N/A		N/A
Bank		582,770		13.02	%		201,399		4.50	%	$	290,910		6.50	%
Tier 1 capital to average assets:
Company	$	608,931		10.29	%	$	236,702		4.00	%	N/A		N/A
Bank		582,770		9.85	%		236,555		4.00	%	$	295,694		5.00	%

Investors:	Media:
Tony Rossi	Erin O’Neill
Financial Profiles, Inc. 310-622-8221	Director of Marketing Byline Bank
BYIR@bylinebank.com	773-475-2901
	eoneill@bylinebank.com

Item 9.01.	Financial Statements and Exhibits.