Byline Bancorp (BY, Financial) has reported a strong financial performance for the first quarter, surpassing revenue expectations. The company's Q1 revenue reached $103.08 million, outstripping the consensus forecast of $100.84 million, highlighting robust operational execution.
The bank recently underwent significant strategic moves, including the conclusion of its partnership with First Security Bancorp, Inc. on April 1st. The integration and core system conversion following this partnership have been successfully completed, marking a pivotal step in Byline's expansion plans.
Additionally, Byline Bancorp has received a credit rating upgrade from Kroll, a testament to its solid financial footing. With these developments, the company remains focused on its ambition to become a leading commercial bank in the Chicago region, strengthening its ties with commercial clientele.
Wall Street Analysts Forecast
Based on the one-year price targets offered by 5 analysts, the average target price for Byline Bancorp Inc (BY, Financial) is $32.60 with a high estimate of $34.00 and a low estimate of $29.00. The average target implies an upside of 27.05% from the current price of $25.66. More detailed estimate data can be found on the Byline Bancorp Inc (BY) Forecast page.
Based on the consensus recommendation from 6 brokerage firms, Byline Bancorp Inc's (BY, Financial) average brokerage recommendation is currently 2.3, indicating "Outperform" status. The rating scale ranges from 1 to 5, where 1 signifies Strong Buy, and 5 denotes Sell.
Based on GuruFocus estimates, the estimated GF Value for Byline Bancorp Inc (BY, Financial) in one year is $26.25, suggesting a upside of 2.3% from the current price of $25.66. GF Value is GuruFocus' estimate of the fair value that the stock should be traded at. It is calculated based on the historical multiples the stock has traded at previously, as well as past business growth and the future estimates of the business' performance. More detailed data can be found on the Byline Bancorp Inc (BY) Summary page.
BY Key Business Developments
Release Date: January 24, 2025
- Net Income (Full Year 2024): $121 million or $2.75 per diluted share.
- Revenue (Full Year 2024): $407 million, up 5% year-on-year.
- Net Income (Q4 2024): $30.3 million or $0.69 per diluted share.
- Revenue (Q4 2024): $105 million, up 3% from the prior quarter and 4% year-on-year.
- Return on Assets (ROA): 131 basis points for both full year and Q4 2024.
- Return on Tangible Common Equity (ROTCE): Just under 15% for the full year and just under 14% for Q4 2024.
- Loan Growth (Full Year 2024): 3%, funded by a 4% increase in deposits.
- Net Interest Margin (Q4 2024): 4.01%, up 13 basis points from the prior quarter.
- Noninterest Income (Q4 2024): $16.1 million, up 12.3% from the prior quarter.
- Efficiency Ratio (Q4 2024): 53.6%.
- Allowance for Credit Losses (ACL): $98 million, with nonperforming loans at 90 basis points of total loans.
- Common Equity Tier 1 (CET1) Ratio: 11.7%, up 35 basis points from the prior quarter.
- Tangible Common Equity (TCE) Ratio: 9.61%.
- Quarterly Dividend Increase: 11.1% increase from the previous dividend.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
- Byline Bancorp Inc (BY, Financial) reported strong results for the fourth quarter and full year 2024, with net income of $121 million and a 5% increase in revenue year-over-year.
- The company achieved record profitability for the full year 2024 and increased its quarterly dividend by 11.1%.
- Byline Bancorp Inc (BY) maintained a strong asset quality with a decrease in non-performing loans and a stable allowance for credit losses.
- The company successfully managed loan growth, with a 3% increase in loans funded by a 4% growth in deposits.
- Capital levels remained robust, with CET1 at just under 12% and total capital at roughly 15%, allowing for early repayment of transaction-related balances.
Negative Points
- The company faced a challenging rate environment, with a moderate decline in short-term rates impacting net interest income.
- Payoff activity increased for the third consecutive quarter, which could potentially affect future loan growth.
- Operating expenses rose to $57.4 million, driven by higher incentive accruals, leading to an increase in the efficiency ratio.
- The SBA portfolio showed signs of gradual deterioration, requiring proactive management to mitigate risks.
- The company anticipates continued volatility in net charge-offs, particularly related to the resolution of acquired loans.
