Byline Bancorp(US:BY)2021-05-06 16:00Financial Position - Byline Bancorp had consolidated total assets of $6.8 billion, total gross loans and leases outstanding of $4.5 billion, total deposits of $5.0 billion, and total stockholders' equity of $793.8 million as of March 31, 2021[212]. - Total assets increased by $359.5 million, or 5.6%, to $6.8 billion at March 31, 2021 compared to $6.4 billion at December 31, 2020[10]. - Total liabilities increased by $371.1 million, or 6.6%, to $6.0 billion at March 31, 2021 compared to $5.6 billion at December 31, 2020[11]. - Byline Bank's stockholders' equity was $793.8 million as of March 31, 2021, down from $805.5 million at December 31, 2020, a decrease of $11.7 million, or 1.4%[356]. Loan and Lease Portfolio - Total loans and leases increased to $4.5 billion as of March 31, 2021, up from $4.3 billion at December 31, 2020, representing a growth of 4.7%[316]. - Originated loans reached $3.8 billion at March 31, 2021, an increase of $181.0 million, or 4.9%, compared to $3.7 billion at December 31, 2020[317]. - The loan portfolio included $428.6 million of unguaranteed 7(a) SBA and USDA loans, with the top three industries being food services (17.4%), manufacturing (17.1%), and retail trade (11.7%) as of March 31, 2021[318]. - Commercial real estate loans comprised 32.1% of the total loan and lease portfolio at March 31, 2021, totaling $1.4 billion[318]. Income and Earnings - Consolidated net income for the three months ended March 31, 2021, was $21.8 million, an increase of $18.8 million compared to $3.0 million for the same period in 2020[258]. - Net income available to common stockholders was $21.6 million, or $0.57 per basic and diluted common share, compared to $2.8 million, or $0.07 per share, in the prior year[260]. - Total revenues for the three months ended March 2021 were $72,382,000, compared to $62,132,000 for the same period in 2020, marking a 16.3% increase[379]. - Adjusted net income for March 2021 was $22,237,000, up from $3,482,000 in March 2020, indicating strong performance[378]. Non-Interest Income and Expenses - Non-interest income rose by $6.4 million, driven by increased net gains on the sale of loans[258]. - Non-interest income for March 2021 was $15,742,000, up from $9,307,000 in March 2020, contributing to overall revenue growth[380]. - Non-interest expense decreased by $4.8 million, mainly due to lower salaries and employee benefits[259]. - Non-interest expense decreased by $4.8 million, or 11.0%, to $38.8 million for the three months ended March 31, 2021 compared to $43.5 million for the same period in 2020[8]. Loan Loss Provisions - The provision for loan and lease losses reflects the amount required to maintain the allowance for loan and lease losses at an appropriate level based on management's evaluation[228]. - Provision for loan and lease losses decreased by $10.1 million, reflecting specific impairments for non-performing loans[258]. - The allowance for loan and lease losses was $65.6 million as of March 31, 2021, compared to $66.3 million at December 31, 2020[318]. - Total provision for loan and lease losses was $4,367,000, with a significant charge-off of $5,466,000 during the period[334]. Regulatory Capital and Ratios - As of March 31, 2021, Byline Bank exceeded all applicable regulatory capital requirements and was considered "well-capitalized"[360]. - The Company's total capital to risk-weighted assets ratio was 15.96%, significantly above the minimum required ratio of 8.00%[361]. - Byline Bank's Tier 1 capital to risk-weighted assets ratio was 12.92%, exceeding the minimum requirement of 6.00%[361]. - The company monitors the appropriate level of the ALLL on a quarterly basis, reflecting management's estimate of probable incurred credit losses[329]. Interest Rate Risk Management - Interest rate risk is the primary market risk, with potential impacts on net interest income and net interest margin due to changes in interest rates[388]. - The company manages interest rate risk through a risk management infrastructure approved by the board, which includes monthly simulations of net interest income under various interest rate scenarios[388]. - A hypothetical increase of 300 basis points in interest rates could result in an 11.6% increase in net interest income, amounting to $240.9 million[394]. - The company does not engage in speculative trading activities related to interest rates or other financial instruments[389]. COVID-19 Impact and Economic Conditions - The company faces inherent uncertainties that could materially affect its future results, including potential disruptions from the COVID-19 pandemic[383]. - The company has established methodologies for determining the adequacy of the allowance for loan and lease losses, which are subject to significant revision based on changing economic conditions[229]. - The company is exposed to potential changes in the fair value of certain assets and liabilities, which could vary significantly from period to period[383]. Shareholder Returns - The Company received $2.0 million in cash dividends from Byline Bank for the three months ended March 31, 2021, and $7.5 million for the year ended December 31, 2020[362]. - A cash dividend of $0.06 per share was declared on January 26, 2021, totaling $2.3 million, paid on February 23, 2021[364]. - The Company repurchased 332,744 shares at an average price of $19.12 per share under its stock repurchase program[363].