Latest news with #BylineBancorp
Yahoo
4 days ago
- Business
- Yahoo
Byline Bancorp Inc (BY) Q2 2025 Earnings Call Highlights: Strong Loan Growth and Robust ...
Net Income: $30 million or $0.66 per diluted share; adjusted net income of $33.8 million or $0.75 per diluted share. Revenue: $110 million, up 11% year on year. Pre-tax Pre-provision Income: $51 million. Return on Assets (ROA): 1.25%; adjusted ROA of 1.41%. Return on Tangible Common Equity (ROTC): Just under 13%; adjusted ROTC of 14.4%. Net Interest Margin (NIM): 4.18%, up 11 basis points from the prior quarter. Non-interest Income: $14.5 million, slightly lower due to a $2.1 million negative fair value mark on the servicing asset. Expenses: $60 million; adjusted expenses of $54.7 million, marking a 2% decrease from the prior quarter. Efficiency Ratio: 48.2% on an adjusted basis. Loan Growth: Total loans increased by $300 million or 17.5% annualized, reaching $7.4 billion. Deposit Growth: Total deposits increased to $7.8 billion, up 13.7% annualized. Allowance for Credit Losses (ACL): $107.7 million, representing 1.47% of total loans. Net Charge-offs: $7.7 million, representing 43 basis points. Common Equity Tier 1 (CET1): 11.85%, up 7 basis points from the prior quarter. Tangible Common Equity to Tangible Assets (TCE/TA): 10.39%, up 44 basis points from last quarter. Warning! GuruFocus has detected 4 Warning Signs with BY. Release Date: July 25, 2025 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Positive Points Byline Bancorp Inc (NYSE:BY) reported strong financial performance with net income of $30 million or $0.66 per diluted share, and adjusted net income of $33.8 million or $0.75 per diluted share. The company successfully completed the acquisition and integration of First Security, adding $280 million in deposits and $153 million in loans. Byline Bancorp Inc (NYSE:BY) achieved a record high net interest income of $96 million, driven by organic loan growth and higher yields on securities. The efficiency ratio was excellent at 48.2% for the quarter, indicating effective cost management. Capital levels remain robust, with CET1 at just under 12% and TCE surpassing 10%, providing flexibility for future opportunities. Negative Points Non-interest income declined marginally due to a negative fair value mark on the servicing asset. Credit costs increased to $11.9 million, with net charge-offs rising to $7.7 million. Non-performing loans saw a 16 basis point increase, indicating some deterioration in credit quality. The cost of money market deposits increased, partly due to the First Security transaction. There is uncertainty regarding the sustainability of the current earnings power, given the impact of the First Security acquisition and market conditions. Q & A Highlights Q: Can you provide more details on the loan growth prospects and whether they are driven by market share gains or improved client sentiment? A: (Alberto J. Paracchini, President) It's challenging to pinpoint the exact source of our healthy pipeline and growth. Despite macroeconomic uncertainties, customer activity has remained robust, with clients expanding capacity and acquiring equipment. It's a combination of both market share gains and improved client sentiment. Q: With the increase in M&A activity in the industry, what are your thoughts on potential M&A opportunities and capital management? A: (Alberto J. Paracchini, President) Conversations around M&A have been ongoing, though expectations have fluctuated with macroeconomic conditions. We maintain a hierarchy for capital deployment: supporting growth, sustaining dividends, and repurchasing shares. We have significant capital flexibility and will continue to be opportunistic. Q: Can you elaborate on the increase in non-performing loans and any specific impairments that contributed to this? A: (Roberto R. Herencia, CEO) The increase was granular and not concentrated in a single line of business. Some event-driven decisions impacted certain credits, but we remain within historical ranges. We are proactive in identifying and resolving issues, ensuring we make real-time decisions on credit strategies. Q: How do you plan to manage the securities portfolio given the strong loan growth and deposit trends? A: (Thomas J. Bell, CFO and Treasurer) We plan to let cash flows from the securities portfolio run off to fund loan growth. Our focus is on customer relationships, and we do not anticipate growing the securities portfolio for the rest of the year. Q: What is your outlook on deposit costs, particularly in relation to CDs, and how might this change if the Fed adjusts rates? A: (Thomas J. Bell, CFO and Treasurer) There is limited room to lower deposit costs unless the Fed cuts rates. We maintain a short duration CD book, anticipating potential rate cuts. Our focus remains on customer relationships and strategically managing deposit costs. For the complete transcript of the earnings call, please refer to the full earnings call transcript. This article first appeared on GuruFocus. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
5 days ago
- Business
- Yahoo
Byline Bancorp's (NYSE:BY) Q2: Strong Sales
Regional banking company Byline Bancorp (NYSE:BY) reported revenue ahead of Wall Street's expectations in Q2 CY2025, with sales up 11.2% year on year to $110.5 million. Its non-GAAP profit of $0.75 per share was 12.5% above analysts' consensus estimates. Is now the time to buy Byline Bancorp? Find out in our full research report. Byline Bancorp (BY) Q2 CY2025 Highlights: Net Interest Income: $95.97 million vs analyst estimates of $91.83 million (10.9% year-on-year growth, 4.5% beat) Net Interest Margin: 4.2% vs analyst estimates of 4% (19 basis point year-on-year increase, 14.3 bps beat) Revenue: $110.5 million vs analyst estimates of $106.9 million (11.2% year-on-year growth, 3.3% beat) Efficiency Ratio: 52.6% vs analyst estimates of 53.7% (1.1 percentage point beat) Adjusted EPS: $0.75 vs analyst estimates of $0.67 (12.5% beat) Market Capitalization: $1.22 billion Roberto R. Herencia, Executive Chairman and CEO of Byline Bancorp, commented, "We are pleased with our overall strategic execution for the first half of the year as we successfully completed the acquisition of First Security Bancorp, which we believe has strengthened the return profile of Byline. We believe that our position in the market remains strong and continue to be driven by our objective of becoming the preeminent commercial bank in Chicago. " Company Overview Ranking as the fifth most active Small Business Administration lender in the country, Byline Bancorp (NYSE:BY) is a Chicago-based bank that provides banking services to small and medium-sized businesses, commercial real estate developers, and consumers. Sales Growth Net interest income and and fee-based revenue are the two pillars supporting bank earnings. The former captures profit from the gap between lending rates and deposit costs, while the latter encompasses charges for banking services, credit products, wealth management, and trading activities. Luckily, Byline Bancorp's revenue grew at an impressive 9.3% compounded annual growth rate over the last five years. Its growth beat the average bank company and shows its offerings resonate with customers, a helpful starting point for our analysis. We at StockStory place the most emphasis on long-term growth, but within financials, a half-decade historical view may miss recent interest rate changes, market returns, and industry trends. Byline Bancorp's annualized revenue growth of 9.5% over the last two years aligns with its five-year trend, suggesting its demand was predictably strong. Note: Quarters not shown were determined to be outliers, impacted by outsized investment gains/losses that are not indicative of the recurring fundamentals of the business. This quarter, Byline Bancorp reported year-on-year revenue growth of 11.2%, and its $110.5 million of revenue exceeded Wall Street's estimates by 3.3%. Net interest income made up 81.8% of the company's total revenue during the last five years, meaning Byline Bancorp barely relies on non-interest income to drive its overall growth. While banks generate revenue from multiple sources, investors view net interest income as the cornerstone - its predictable, recurring characteristics stand in sharp contrast to the volatility of non-interest income. Software is eating the world and there is virtually no industry left that has been untouched by it. That drives increasing demand for tools helping software developers do their jobs, whether it be monitoring critical cloud infrastructure, integrating audio and video functionality, or ensuring smooth content streaming. Click here to access a free report on our 3 favorite stocks to play this generational megatrend. Tangible Book Value Per Share (TBVPS) Banks operate as balance sheet businesses, with profits generated through borrowing and lending activities. Valuations reflect this reality, emphasizing balance sheet strength and long-term book value compounding ability. Because of this, tangible book value per share (TBVPS) emerges as the critical performance benchmark. By excluding intangible assets with uncertain liquidation values, this metric captures real, liquid net worth per share. Other (and more commonly known) per-share metrics like EPS can sometimes be murky due to M&A or accounting rules allowing for loan losses to be spread out. Byline Bancorp's TBVPS grew at a solid 6.9% annual clip over the last five years. TBVPS growth has also accelerated recently, growing by 11.2% annually over the last two years from $17.43 to $21.56 per share. Over the next 12 months, Consensus estimates call for Byline Bancorp's TBVPS to grow by 10.6% to $23.85, solid growth rate. Key Takeaways from Byline Bancorp's Q2 Results We enjoyed seeing Byline Bancorp beat analysts' net interest income expectations this quarter. We were also glad its revenue outperformed Wall Street's estimates. Zooming out, we think this was a good print with some key areas of upside. The stock remained flat at $27.10 immediately after reporting. Is Byline Bancorp an attractive investment opportunity right now? The latest quarter does matter, but not nearly as much as longer-term fundamentals and valuation, when deciding if the stock is a buy. We cover that in our actionable full research report which you can read here, it's free.
Yahoo
01-07-2025
- Business
- Yahoo
BY Q1 Deep Dive: Steady Loan Growth and Expense Discipline Amid Macroeconomic Uncertainty
Regional banking company Byline Bancorp (NYSE:BY) reported Q1 CY2025 results topping the market's revenue expectations , with sales up 2% year on year to $103.1 million. Its non-GAAP profit of $0.65 per share was 4.3% above analysts' consensus estimates. Is now the time to buy BY? Find out in our full research report (it's free). Revenue: $103.1 million vs analyst estimates of $100.7 million (2% year-on-year growth, 2.4% beat) Adjusted EPS: $0.65 vs analyst estimates of $0.62 (4.3% beat) Market Capitalization: $1.12 billion Byline Bancorp's first quarter results reflected stable core banking trends, with management highlighting disciplined expense control and healthy loan origination as the main drivers. CEO Alberto Paracchini credited the bank's consistent profitability to flat net interest income, margin expansion, and well-managed expenses, despite a challenging macroeconomic environment marked by cautious client behavior. Management noted that asset quality improved, with lower net charge-offs and declining non-performing loans. In discussing the quarter, Paracchini stated, 'We remain focused on being a bank that serves clients through the cycle while maintaining disciplined risk management.' Looking ahead, Byline Bancorp's outlook centers on navigating a period of heightened economic uncertainty and managing the integration of the First Security acquisition. Management is focused on maintaining mid-single-digit loan growth, further improving deposit costs, and expanding non-interest income through targeted fee businesses. Paracchini cautioned that clients remain in a 'wait-and-see' mode regarding capital expenditures and investments, given evolving trade policies and potential interest rate changes. Management remains optimistic about the bank's ability to deliver value, with CFO Tom Bell stating, 'We expect continued margin management and disciplined expense trends to support our financial targets through the remainder of the year.' Management attributed first quarter results to steady loan growth, margin improvement, and cost discipline, while emphasizing the successful closing of the First Security acquisition and ongoing client caution amid macroeconomic uncertainty. Loan origination momentum: Byline Bancorp achieved $310 million in new loan originations, citing strong commercial banking and leasing activity, with pipelines described as healthy despite client caution tied to economic policy shifts. Deposit cost improvement: The bank reported a 26-basis-point reduction in interest-bearing deposit costs and a favorable shift in deposit mix—from time deposits to money market accounts—helping expand the net interest margin to 4.07%. Expense discipline: Management noted that non-interest expenses declined by about 2%, driven by lower compensation and marketing spend, and reaffirmed guidance for quarterly expenses to remain in the $55–$57 million range, excluding merger charges. Asset quality trends: Asset quality improved, with non-performing loans falling to 0.76% of total loans and net charge-offs declining quarter over quarter. Management attributed the reserve build to changes in loss rates for certain loan categories and portfolio growth. First Security integration: The acquisition of First Security closed on April 1, with management emphasizing the fast integration and successful migration of customers and employees. The transaction sets the stage for consolidated reporting in future periods and is expected to influence near-term operational metrics. Management expects Byline Bancorp's performance to be shaped by prudent growth in loans and deposits, ongoing expense control, and the integration of First Security, all against a backdrop of economic uncertainty and evolving policy. Mid-single-digit loan growth: Management reaffirmed expectations for mid-single-digit loan growth, supported by an active commercial pipeline and ongoing client engagement, although clients remain cautious due to uncertain trade and rate environments. Expense management focus: The company plans to hold quarterly non-interest expenses flat, outside of merger integration costs, and is targeting additional efficiencies as it absorbs First Security's operations and systems. Expansion of fee income: Byline Bancorp is prioritizing growth in non-interest income, particularly through its wealth management and commercial fee-based businesses, aiming to align its revenue mix more closely with peers as it surpasses $10 billion in assets. In the coming quarters, the StockStory team will monitor (1) the pace of loan and deposit growth relative to management's expectations, (2) the impact of First Security integration on expense and revenue synergies, and (3) the ability to expand non-interest income, particularly in fee-based business lines. We will also watch for changes in client sentiment in response to evolving economic and trade policy conditions. Byline Bancorp currently trades at $25.52, down from $27.10 just before the earnings. Is there an opportunity in the stock?The answer lies in our full research report (it's free). Donald Trump's victory in the 2024 U.S. Presidential Election sent major indices to all-time highs, but stocks have retraced as investors debate the health of the economy and the potential impact of tariffs. While this leaves much uncertainty around 2025, a few companies are poised for long-term gains regardless of the political or macroeconomic climate, like our Top 9 Market-Beating Stocks. This is a curated list of our High Quality stocks that have generated a market-beating return of 183% over the last five years (as of March 31st 2025). Stocks that made our list in 2020 include now familiar names such as Nvidia (+1,545% between March 2020 and March 2025) as well as under-the-radar businesses like the once-micro-cap company Tecnoglass (+1,754% five-year return). Find your next big winner with StockStory today.
Business Wire
01-07-2025
- Business
- Business Wire
Byline Bancorp, Inc. to Announce Second Quarter 2025 Financial Results on Thursday, July 24
CHICAGO--(BUSINESS WIRE)--Byline Bancorp, Inc. (NYSE: BY) announced today that it will issue its second quarter 2025 financial results after market close on Thursday, July 24, 2025. Byline Bancorp will also host a conference call and webcast at 9:00 a.m. Central Time on Friday, July 25, 2025 to discuss its financial results. Analysts and investors may participate in the question-and-answer session. Conference Call, Replay and Webcast Information: Date: Friday, July 25, 2025 Time: 9:00 a.m. Central Time Telephone Access: 833-470-1428; passcode: 014057 Telephone Replay (available through August 8, 2025): 866-813-9403; passcode: 590803 Webcast Access: A live webcast will be available on the News and Events page in the Investor Relations section of the Company's website. An archived version of the webcast will be available in the same location shortly after the live call has ended. 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 $9.6 billion in assets as of March 31, 2025 and operates 45 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.
Yahoo
26-06-2025
- Business
- Yahoo
Byline Bancorp (BY): Buy, Sell, or Hold Post Q1 Earnings?
Over the past six months, Byline Bancorp's shares (currently trading at $25.74) have posted a disappointing 12.4% loss while the S&P 500 was flat. This may have investors wondering how to approach the situation. Following the pullback, is this a buying opportunity for BY? Find out in our full research report, it's free. Ranking as the fifth most active Small Business Administration lender in the country, Byline Bancorp (NYSE:BY) is a Chicago-based bank that provides banking services to small and medium-sized businesses, commercial real estate developers, and consumers. While banks generate revenue from multiple sources, investors view net interest income as the cornerstone - its predictable, recurring characteristics stand in sharp contrast to the volatility of non-interest income. Byline Bancorp's net interest income has grown at a 12.5% annualized rate over the last four years, better than the broader bank industry. Its growth was driven by an increase in its net interest margin, which represents how much a bank earns in relation to its outstanding loans, as its loan book shrank throughout that period. Analyzing the long-term change in earnings per share (EPS) shows whether a company's incremental sales were profitable – for example, revenue could be inflated through excessive spending on advertising and promotions. Byline Bancorp's EPS grew at an astounding 15.4% compounded annual growth rate over the last five years, higher than its 8.5% annualized revenue growth. This tells us the company became more profitable on a per-share basis as it expanded. Topline growth alone doesn't tell the complete story - the profitability of that growth shapes actual earnings impact. Banks track this dynamic through efficiency ratios, which compare non-interest expenses such as personnel, rent, IT, and marketing costs to total revenue streams. Markets understand that a bank's expense base depends on its revenue mix and what mostly drives share price performance is the change in this ratio, rather than its absolute value. It's somewhat counterintuitive, but a lower efficiency ratio is better. For the next 12 months, Wall Street expects Byline Bancorp to become less profitable as it anticipates an efficiency ratio of 53.7% compared to 52.3% over the past year. Byline Bancorp's positive characteristics outweigh the negatives. After the recent drawdown, the stock trades at 1× forward P/B (or $25.74 per share). Is now a good time to buy? See for yourself in our in-depth research report, it's free. The market surged in 2024 and reached record highs after Donald Trump's presidential victory in November, but questions about new economic policies are adding much uncertainty for 2025. While the crowd speculates what might happen next, we're homing in on the companies that can succeed regardless of the political or macroeconomic environment. Put yourself in the driver's seat and build a durable portfolio by checking out our Top 9 Market-Beating Stocks. This is a curated list of our High Quality stocks that have generated a market-beating return of 183% over the last five years (as of March 31st 2025). Stocks that made our list in 2020 include now familiar names such as Nvidia (+1,545% between March 2020 and March 2025) as well as under-the-radar businesses like the once-micro-cap company Kadant (+351% five-year return). Find your next big winner with StockStory today. Effettua l'accesso per consultare il tuo portafoglio
