Byline Bancorp(US:BY)2022-11-03 16:00Financial Performance - Consolidated net income for the three months ended September 30, 2022, was $22.7 million, a decrease of $2.6 million from $25.3 million in the same period of 2021[213]. - For the nine months ended September 30, 2022, consolidated net income was $65.3 million, down from $75.6 million in 2021, reflecting a decrease of $10.3 million[213]. - Consolidated net income for the three months ended September 30, 2022, was $22.7 million, a decrease of $2.7 million from $25.3 million in the same period of 2021[245]. - Net income available to common stockholders for the nine months ended September 30, 2022, was $65.1 million, or $1.76 per basic share, compared to $75.0 million, or $1.99 per basic share, in the same period of 2021[251]. - Net income available to common stockholders for the three months ended September 2022 was $22,656, down from $25,110 in the same period last year, a decrease of 9.7%[370]. Income and Expenses - Net interest income increased by $9.0 million for the three months and $14.6 million for the nine months ended September 30, 2022, driven by growth in the loan and lease portfolio[213][215]. - Non-interest income decreased by $9.7 million for the nine months ended September 30, 2022, primarily due to lower net gains on sales of loans[249]. - Non-interest income was $12.0 million for the three months ended September 30, 2022, a decrease of $6.5 million, or 35.2%, compared to $18.5 million for the same period in 2021[272]. - Adjusted non-interest expense for the three months ended September 2022 was $46,178, an increase from $42,746 for the same period in 2021, representing an increase of 10.1%[370]. - Total revenues for the three months ended September 2022 were $80,867, compared to $78,340 for the same period in 2021, reflecting a growth of 3.2%[370]. Asset and Liability Management - Total assets as of September 30, 2022, were $7.3 billion, with total gross loans and leases outstanding at $5.3 billion and total deposits at $5.6 billion[219]. - Total assets increased by $581.4 million or 8.7% to $7.3 billion at September 30, 2022, compared to $6.7 billion at December 31, 2021[295]. - Total liabilities rose by $670.2 million or 11.4% to $6.5 billion at September 30, 2022, compared to $5.9 billion at December 31, 2021[296]. - Total deposits increased by $457.4 million or 8.9%, primarily due to growth in money market accounts[296]. - The loan and lease to deposit ratio was 94.6% at September 30, 2022, compared to 89.3% at December 31, 2021[333]. Loan and Lease Portfolio - Loans and leases increased by $738.3 million or 16.3% to $5.3 billion at September 30, 2022, driven by organic growth and renewals of acquired non-impaired loans[295]. - Total loans and leases increased to $5.3 billion as of September 30, 2022, up $738.3 million or 16.3% from $4.5 billion at December 31, 2021[308]. - Total originated loans and leases reached $5.0 billion, an increase of $858.9 million or 21.0% compared to $4.1 billion at December 31, 2021[308]. - Commercial and industrial loans rose to $2.0 billion, a 24.4% increase from $1.6 billion at December 31, 2021, comprising 37.3% of the total loan and lease portfolio[313]. - Total lease financing receivables increased to $495.8 million, a growth of 38.3% from $358.4 million at December 31, 2021, comprising 9.4% of the loan and lease portfolio[314]. Provision for Loan and Lease Losses - The provision for loan and lease losses increased by $3.8 million for the three months and $12.3 million for the nine months ended September 30, 2022, compared to the same periods in 2021[213]. - The increase in provision for loan and lease losses for the nine months ended September 30, 2022, was $12.3 million, attributed to portfolio growth and specific reserves on impaired loans[250]. - The allowance for loan and lease losses (ALLL) increased to $64.7 million, a rise of 17.5% from $55.0 million at the end of 2021, primarily due to loan growth and an increase in non-performing loans[322]. - The allowance for loan and lease losses as a percentage of loans and leases was 1.23% at September 30, 2022, compared to 1.21% at December 31, 2021[271]. - The allowance for loan and lease losses as a percentage of non-performing loans and leases was 183.86% at September 30, 2022, down from 237.84% at December 31, 2021[328]. Capital and Equity - Stockholders' equity at September 30, 2022 was $747.6 million, a decrease of $88.8 million, or 10.6% from $836.4 million at December 31, 2021[345]. - Byline Bank's total capital to risk-weighted assets ratio was 13.02% as of September 30, 2022, exceeding the minimum requirement of 8.00%[349]. - The tangible common stockholders' equity decreased to $587,081 as of September 2022 from $646,684 in September 2021, a decline of 9.2%[370]. - The Company expects cash and liquidity resources to be sufficient to satisfy liquidity and capital requirements for at least the next twelve months[344]. - The Company redeemed all 10,438 outstanding shares of its 7.5% fixed-to-floating noncumulative perpetual preferred stock, Series B, for a total of $10.6 million on March 31, 2022[352]. Interest Rate Risk Management - The company had a notional amount of $1.1 billion in interest rate swaps outstanding as of September 30, 2022, to manage interest rate risk exposure[374]. - The bank's interest rate risk exposure is managed within board-approved policy limits[379]. - The simulation model indicates that a 300 basis point increase in interest rates could lead to a 20.9% increase in net interest income, amounting to $358,883,000[376]. - A 200 basis point increase would result in a 14.4% increase in net interest income, totaling $339,596,000[376]. - A downward shift of 100 basis points would result in a 2.9% decrease in net interest income[378].