Acquisition of a Business (Tables)

12 Months Ended

Dec. 31, 2019

Summary of Estimates Fair Values of Assets and Liabilities Assumed as of Acquisition Date

The following table presents a summary of the estimated fair values of assets acquired and liabilities assumed as of the acquisition date:

	Preliminary Estimates April 30, 2019 Oak Park River Forest		May 31, 2018 First Evanston
Assets
Cash and cash equivalents	$	10,469	$	47,378
Securities available-for-sale		30,343		128,063
Restricted stock		414		1,360
Loans		257,423		916,011
Premises and equipment		3,488		15,890
Other real estate owned		2,201		—
Other intangible assets		6,220		22,276
Bank-owned life insurance		3,485		—
Deferred tax assets, net		5,925		2,302
Other assets		1,231		8,845
Total assets acquired		321,199		1,142,125
Liabilities
Deposits		290,171		1,022,268
Line of credit		5,655		—
Federal Home Loan Bank advances		5,300		—
Junior subordinated debentures		—		8,497
Accrued expenses and other liabilities		4,766		5,844
Total liabilities assumed		305,892		1,036,609
Net assets acquired	$	15,307	$	105,516
Consideration paid
Common stock (2019 - 1,464,558 shares issued at $20.02 per share, 2018 - 6,682,850 shares issued at $21.62 per share)		29,320		144,483
Outstanding stock options converted to Byline stock options		—		7,644
Cash paid		6,163		27,004
Total consideration paid		35,483		179,131
Goodwill	$	20,176	$	73,615

Summary of Acquired Non-Impaired Loans as of Acquisition Date

The following table presents the acquired non-impaired loans as of the acquisition date:

	Preliminary Estimates April 30, 2019 Oak Park River Forest		May 31, 2018 First Evanston
Fair value	$	204,496	$	890,986
Gross contractual amounts receivable		254,755		1,057,374
Estimate of contractual cash flows not expected to be collected⁽¹⁾		12,987		36,544
Estimate of contractual cash flows expected to be collected		241,768		1,020,830

(1)	Includes interest payments not expected to be collected due to loan prepayments as well as principal and interest payments not expected to be collected due to customer default.

Summary of Pro Forma Information for Results of Operations

The following table provides the pro forma information for the results of operations for the years ended December 31, 2019 and 2018, as if the acquisitions had occurred on January 1, 2018. The pro forma results combine the historical results of First Evanston and Oak Park River Forest into the Company’s Consolidated Statements of Operations, including the impact of certain acquisition accounting adjustments, which includes loan discount accretion, intangible assets amortization, deposit premium accretion and borrowing net discount amortization. The pro forma results have been prepared for comparative purposes only and are not necessarily indicative of the results that would have been obtained had the acquisitions actually occurred on January 1, 2018. No assumptions have been applied to the pro forma results of operations regarding possible revenue enhancements, provision for credit losses, expense efficiencies or asset dispositions. The acquisition-related expenses that have been recognized are included in net income in the following table.

	Years ended December 31,
	2019		2018
Total revenues (net interest income and non-interest income)	$	272,081	$	274,108
Net income		57,797		61,356
Earnings per share—basic		1.47		1.61
Earnings per share—diluted		1.45		1.57