Latest news with #SmallBusinessAdministration
Yahoo
5 days ago
- 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
Indianapolis Star
7 days ago
- Business
- Indianapolis Star
See U.S. Administrator visit Indy to support Trump's 'Big Beautiful Bill' at Olsen Custom Designs
Watch U.S Administrator of the Small Business Administration Kelly Loeffler supports President Trump's "Big Beautiful Bill" on Tuesday, June 24, 2025, as she visits a Contract Manufacturer in Indianapolis. Adin Parks
Yahoo
24-06-2025
- Business
- Yahoo
RC Q1 Deep Dive: Asset Liquidations and Credit Repositioning Dominate Start to 2025
Real estate finance company Ready Capital (NYSE:RC) missed Wall Street's revenue expectations in Q1 CY2025, but sales rose 140% year on year to $31.32 million. Its non-GAAP loss of $0.09 per share was significantly below analysts' consensus estimates. Is now the time to buy RC? Find out in our full research report (it's free). Revenue: $31.32 million vs analyst estimates of $72.38 million (140% year-on-year growth, 56.7% miss) Adjusted EPS: -$0.09 vs analyst estimates of $0.12 (significant miss) Market Capitalization: $767.3 million Ready Capital's first quarter results for 2025 were met with a significant negative market reaction, as the company's revenue and adjusted earnings per share both missed Wall Street expectations. Management attributed the quarter's performance to a combination of ongoing asset liquidations in the non-core commercial real estate portfolio and continued pressure from non-accrual loans, which reduced net interest income. CEO Thomas Edward Capasse highlighted the impact of transitioning assets to non-accrual status and noted, 'The dividend shortfall was primarily due to a reduction in net interest income as assets in the non-core portfolio transition to non-accrual status.' Looking forward, Ready Capital's management is focused on executing a balance sheet repositioning plan designed to stabilize earnings and restore net interest margin levels. The company expects its strategy of liquidating non-core assets and reinvesting proceeds into core higher-yield bridge loans to gradually improve earnings, with CFO Andrew Ahlborn stating, 'The upward trend really will start upon reinvestment of that equity I just described.' Management also pointed to potential benefits from policy changes in Small Business Administration lending and the stabilization of key real estate assets. Management cited active portfolio repositioning, capital market execution, and sector-specific challenges as the main factors influencing the first quarter's results and the company's near-term outlook. Non-core asset liquidations: Ready Capital surpassed its first quarter liquidation targets in the non-core commercial real estate portfolio, generating $28 million in liquidity and reducing the portfolio by 6%. Management views these sales as key to reducing negative carry and creating capital for reinvestment. Core bridge loan stability: The core portfolio, which is heavily concentrated in multifamily assets, saw a 5% decline in volume due to payoffs, but credit metrics remained relatively healthy. Modifications increased, with 18% of loans now altered to accommodate borrower needs, supporting future net interest margin rebuilding. Portland mixed-use asset update: The previously performing construction loan in Portland shifted to non-accrual status, resulting in a $0.13 per share earnings reduction. Management is moving to obtain title and expects to sequentially exit the asset's hotel, office, and condo components as they stabilize. SBA lending volume and policy changes: Small Business Administration (SBA) loan originations remained high but are expected to moderate due to capital constraints and administrative delays at the SBA. Management is monitoring policy updates and supports recent changes aimed at strengthening the program. Capital markets activity: Ready Capital completed a merger with UDF IV, generating $96 million in liquidity and a $102.5 million bargain purchase gain. The company also executed secured debt offerings and collapsed several collateralized loan obligations (CLOs) to extend maturities and improve liquidity. Ready Capital's outlook centers on the pace of asset sales, reinvestment strategy, and the evolving landscape in SBA and multifamily lending. Execution of asset liquidation plan: Management expects continued reductions in the non-core portfolio throughout 2025, with proceeds targeted for reinvestment into core higher-yield loans. The timing and pricing of these asset sales will influence the recovery in net interest margin and distributable earnings. Stabilization of the Portland project: The company anticipates that the sequential stabilization and eventual exit of the hotel, office, and condo components in the Portland mixed-use asset will be critical for improving earnings, though management cautioned that full stabilization could take several years, especially for condo sales. Regulatory and policy impact on SBA volumes: SBA origination volumes are expected to remain below platform capacity due to administrative delays and changing guidelines, but management highlighted that successful adoption of new SBA policies and legislative changes could eventually support higher future origination volumes and gain-on-sale margins. In the coming quarters, our analysts will be monitoring (1) the pace and pricing of non-core asset liquidations and reinvestment into the core loan portfolio, (2) progress toward stabilization of the Portland mixed-use asset and subsequent asset sales, and (3) shifts in SBA loan origination volumes as new policies and legislative changes take effect. The impact of capital market access and debt refinancing will also be closely tracked. Ready Capital currently trades at $4.50, up from $4.37 just before the earnings. Is there an opportunity in the stock?Find out in our full research report (it's free). Market indices reached historic highs following Donald Trump's presidential victory in November 2024, but the outlook for 2025 is clouded by new trade policies that could impact business confidence and growth. While this has caused many investors to adopt a "fearful" wait-and-see approach, we're leaning into our best ideas that can grow regardless of the political or macroeconomic climate. Take advantage of Mr. Market by checking out our Top 6 Stocks for this week. 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. 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Miami Herald
16-06-2025
- Business
- Miami Herald
Ex-Small Business Administration employee sentenced to 4.5 years for PPP fraud
A former Small Business Administration employee who learned the system from the inside and cashed in on pandemic loans for herself and others was sentenced Friday to over four years in prison for committing fraud. Malaina Chapman was also ordered to pay back about $1.3 million to her former employer by U.S. District Judge Rodolfo Ruiz in Miami federal court. Chapman, 38, of Hialeah, pleaded guilty in March to conspiracy to commit wire fraud, including submitting COVID-19 loan applications and advising a half-dozen others on filing similar requests for emergency benefits that were managed by the Small Business Administration. In that scheme, her associate, Raisha Kelly, 44, of Palm Beach County, was sentenced in May to five years in prison after being found guilty by a Miami federal jury of multiple counts of wire fraud for submitting falsified tax returns on loan applications. She was also ordered to reimburse about $445,000 to the SBA, which guaranteed pandemic loans through the agency's Paycheck Protection Program. As the coronavirus swept across the country, the two South Florida women teamed up to steal more than $1 million in federal government loans that were meant to help small businesses survive the economic collapse during the public health crisis, according to prosecutors in the U.S. Attorney's Office. Assistant U.S. Attorney Dan Bernstein noted that Chapman was making about $57,000 a year as an SBA employee when she stole not only from the agency's PPP loan program but also from other relief programs at the federal, state and local levels. Bernstein pointed out that Chapman spent the ill-gotten funds at luxury stores such as Louis Vuitton and Chanel and leased a BMW for more than $2,300 a month — not on her side businesses or employee payroll, as was required by law. In a sentencing memo, Bernstein said Chapman 'never met a trust-based government program that she didn't steal from,' calling her 'a financial predator who views government relief programs as her personal piggy bank that existed to fund her dreams of living in the luxury she felt entitled to.' Since Congress adopted the pandemic relief program run by the SBA, South Florida has been a hotbed of PPP loan fraud. Business people, law enforcement officers and hundreds of others have been convicted of stealing millions from the government program by fabricating loan applications for their companies. Several used their emergency loans to buy Lamborghinis, Teslas, Porsches and other expensive cars. READ MORE: Lambos. Jewels. How 'easy money' from Uncle Sam made Miami a feast for PPP fraudsters First ex-SBA employee charged Chapman was employed as a disaster relief specialist with the Small Business Administration from Sept. 28, 2020, through her resignation on March 18, 2021, according to court records. During her employment, Chapman fleeced the PPP and Economic Injury Disaster loan programs, as well as credit unions and pandemic-related rental programs, according to federal court records. Chapman was the first ex-SBA employee in the country to be charged with bilking the agency responsible for doling out $800 billion in PPP and other pandemic loans, according to federal authorities. Chapman advertised her side businesses in real estate and credit services on her Instagram account under the handle upscale_yourhomegirl. Chapman was accused of helping Kelly and five other members in a South Florida ring with their bogus PPP loan applications, leading to disbursements of hundreds of thousands of dollars in 2021 by private lenders backed by the SBA. With the exception of Kelly, five members of the ring agreed to plead guilty to charges of fraudulently receiving more than $800,000 in PPP loans, court records show. Chapman and Kelly received kickbacks from loan applicants, according to prosecutors. In addition, on Feb. 10, 2021, Chapman submitted a PPP loan application in the name of her company, Upscale Credit Lounge, which included a falsified tax document that reported revenue of $103,674 and a profit of $81,860. Eleven days later, a private lender approved another loan for $17,052, according to court records. On Feb. 19, 2021, Chapman, again while still employed by the SBA, submitted another PPP loan application for her business, DA TRAP. Chapman claimed that she had four employees and an average monthly payroll of $14,191. As backup material, Chapman submitted four IRS Employers Quarterly Tax Return forms, which documented the wages paid by DA TRAP. A week later, a private lender approved a loan for $35,477. All of the information in her application was fabricated, prosecutors said. In a similar manner, on April 10, 2021, Chapman submitted another PPP loan application for a property management business, falsely claiming on a tax form that it generated revenue of $123,950, with profits of $78,187, court records show. Five days later, a private lender approved that loan for $20,833. In addition to defrauding the PPP program, Chapman was also accused of exploiting the state of Florida and the city of Miami's COVID-19 Emergency Rental Assistance programs. On Oct. 13, 2021, Chapman began the process of applying for benefits under Florida's Emergency Rental Assistance program. Chapman pretended to be a tenant at a residence in Miami, according to court records. She submitted information and documents through an online portal set up to distribute benefits. On Jan. 20, 2022, Chapman submitted a written document titled '3-day notice to pay rent or quit.' The document was dated Dec. 7, 2021, showing it was signed by Chapman's mother. But her mother had died the previous year on May 25, 2020. Nonetheless, the state accepted Chapman's misrepresentations and approved payments totaling $15,000. They were made into her bank account, according to authorities. The PPP fraud cases, investigated by the U.S. Postal Service Office of Inspector General and other federal agencies, were handled by prosecutors Bernstein, Eduardo Gardea Jr. and Gabrielle Charest-Turken.
Yahoo
14-06-2025
- Business
- Yahoo
Foundation pledges $10,000 to Somerset flood recovery fund
SOMERSET, Pa. – A Johnstown-based foundation has pledged $10,000 toward a Somerset County flood recovery effort. The 1889 Foundation's $10,000 donation will be used to support organizations providing emergency shelters, food assistance and clean-up supplies in the wake of devastating flooding across southern Somerset County last month. 'At a time when so many of our neighbors are facing hardship, we believe it's essential to step forward and support the recovery process,' said 1889 Foundation President Susan Mann. 'Our communities are resilient, and together, we can rebuild stronger.' The Somerset County commissioners established the Somerset County Disaster Recovery Fund last month to assist communities – including their residents and businesses – as they worked to recover from the flood. The disaster's severity enabled state and federal resources, including Small Business Administration loan programs, to be made available for home repairs and loss recovery, among other aid – but county officials envision the county's fund filling in unmet 'gaps.' Somerset County President Commissioner Brian Fochtman described the donation as 'fantastic news' for the fund. 'It's great they are willing to do that to help their neighbor (to) the south,' Fochtman said of the organization. 'I'm almost overwhelmed by the willingness we're seeing from the community to help.' The donation puts the fund at approximately $50,000. The Community Foundation for the Alleghenies is managing the fund, while a committee of county-appointed individuals – including first responders and business leaders – will review applications to begin issuing funds this month. The first round of funding is being designated for 501(c)3 organizations, including religious organizations and government entities providing support to residents in the flood relief effort, which can request up to $10,000, according to the Community Foundation. 1889 Foundation officials said they recognize the efforts nonprofits have already put in to support people whose lives have been upended by the May 13 disaster. '(The) 1889 Foundation deeply appreciates the tireless work those organizations and all of the nonprofits organizations involved are doing to bring comfort and aid to those in need,' Mann said. Deadline approaching Somerset County Emergency Management Director Joel Landis said an application deadline of June 18 is fast approaching for organizations to apply for the first wave of Somerset County Disaster Recovery funds. Qualified nonprofit organizations and municipal government entities can apply at The region is also being encouraged to support the recovery effort by donating to the Disaster Recovery Fund at The Somerset County commissioners are planning to have the disaster fund operated as a long-term support line that will help residents in the aftermath of future disasters.
