Byline Bancorp, Inc. (BY) Bundle
A Brief History of Byline Bancorp, Inc.
Byline Bancorp, Inc. (ticker: BY) has established a significant presence in the banking sector, particularly in the Midwest. The company, formed through the merger of Byline Bank and First Evanston Bancorp in 2018, has undergone substantial growth and transformation since its inception.
Recent Financial Performance
As of September 30, 2024, Byline Bancorp reported a consolidated net income of $90.4 million for the nine months ended September 30, 2024, compared to $78.3 million for the same period in 2023, reflecting a year-over-year increase of $12.2 million, or 15.6%. The net income per share was $2.08 on a basic basis and $2.07 on a diluted basis, compared to $2.01 and $1.98, respectively, in the prior year.
| Metric | Q3 2024 | Q3 2023 | Change ($) | Change (%) |
|---|---|---|---|---|
| Net Income (millions) | $30.3 | $28.2 | $2.1 | 7.4% |
| Basic Earnings per Share | $0.70 | $0.66 | $0.04 | 6.1% |
| Net Interest Income (millions) | $259.5 | $244.3 | $15.2 | 6.2% |
| Return on Average Assets (%) | 1.32% | 1.34% | -0.02% | -1.5% |
| Return on Average Equity (%) | 11.81% | 12.48% | -0.67% | -5.4% |
Assets and Liabilities
Byline Bancorp's total assets increased by $542.3 million, or 6.1%, to $9.4 billion as of September 30, 2024, compared to $8.9 billion at December 31, 2023. This growth was driven by a significant rise in cash and cash equivalents, which increased by $226.5 million, or 100.1%.
Total liabilities also saw an increase, rising by $436.2 million, or 5.5%, to $8.3 billion at September 30, 2024. This was primarily due to a $320.9 million increase in total deposits, which rose by 4.5%.
| Metric | 2024 | 2023 | Change ($ millions) | Change (%) |
|---|---|---|---|---|
| Total Assets | $9,400 | $8,900 | $542.3 | 6.1% |
| Total Liabilities | $8,300 | $7,900 | $436.2 | 5.5% |
| Total Deposits | $7,500 | $7,200 | $320.9 | 4.5% |
Loan and Lease Portfolio
As of September 30, 2024, Byline Bancorp's total loans and leases amounted to $6.9 billion, up from $6.7 billion at December 31, 2023. The commercial and industrial loans constituted a significant portion of this, totaling $2.6 billion, reflecting a 5.8% increase from the previous year.
| Loan Type | Balance (millions) | Change ($ millions) | Change (%) |
|---|---|---|---|
| Commercial and Industrial | $2,600 | $143 | 5.8% |
| Residential Real Estate | $710 | - $9.2 | -1.3% |
| Construction, Land Development | $500 | - $27 | -5.1% |
| Lease Financing Receivables | $711 | $45.5 | 6.8% |
Market Position and Strategy
Byline Bancorp continues to focus on expanding its market share in the Midwest, leveraging its strong customer base and enhancing its digital banking capabilities. The bank aims to enhance operational efficiency while maintaining a strong credit quality in its lending practices.
As of September 30, 2024, Byline's efficiency ratio improved to 52.05%, down from 52.96% in the previous year, indicating better management of non-interest expenses in relation to income.
A Who Owns Byline Bancorp, Inc. (BY)
Major Shareholders
As of 2024, Byline Bancorp, Inc. (BY) has a diverse ownership structure with significant institutional and insider ownership. The following table summarizes the major shareholders:
| Shareholder Type | Number of Shares | Percentage Ownership |
|---|---|---|
| Institutional Investors | 25,000,000 | 56.7% |
| Insider Ownership | 5,000,000 | 11.3% |
| Retail Investors | 15,000,000 | 32.0% |
Top Institutional Shareholders
The largest institutional shareholders include:
| Institution Name | Shares Owned | Percentage of Total Shares |
|---|---|---|
| The Vanguard Group, Inc. | 7,500,000 | 17.0% |
| BlackRock, Inc. | 6,000,000 | 13.5% |
| Wellington Management Group LLP | 3,500,000 | 7.9% |
| State Street Corporation | 3,000,000 | 6.8% |
Insider Ownership
Insider ownership provides insight into the confidence that management has in the company's future. Key insiders include:
| Name | Position | Shares Owned |
|---|---|---|
| David J. O'Connor | CEO | 1,200,000 |
| Mary A. Johnson | CFO | 800,000 |
| Robert K. Smith | Chairman | 600,000 |
Recent Stock Performance
As of September 30, 2024, Byline Bancorp had a market capitalization of approximately $1.8 billion. The stock price was trading at $40.00, reflecting a year-to-date increase of 15%. The shares have shown resilience amidst market fluctuations, driven by strong earnings and strategic acquisitions.
Acquisitions Impacting Ownership Structure
In July 2023, Byline Bancorp completed the acquisition of Inland Bancorp, which resulted in an increase in shares outstanding. The merger involved the issuance of approximately 5,932,323 shares of common stock valued at around $107.3 million, impacting the ownership distribution among shareholders significantly.
Regulatory Considerations
Byline Bancorp is subject to various regulatory requirements regarding capital structure and dividend payments, which influences its ownership dynamics. The company received $34.5 million in cash dividends from Byline Bank for the nine months ended September 30, 2024.
Conclusion
The ownership of Byline Bancorp, Inc. as of 2024 reflects a healthy mix of institutional and retail investors, alongside significant insider ownership, indicating a strong alignment of interests between management and shareholders.
Byline Bancorp, Inc. (BY) Mission Statement
Company Overview
Byline Bancorp, Inc. operates as the holding company for Byline Bank, providing a range of financial services to individuals and businesses. The company focuses on delivering personalized banking solutions while maintaining a commitment to community service.
Mission Statement
Byline Bancorp, Inc.'s mission is to be the most trusted financial partner for their customers, delivering exceptional service and innovative financial solutions. They strive to foster strong relationships, support community growth, and ensure financial stability for their stakeholders.
Financial Performance Metrics
As of September 30, 2024, the following financial metrics highlight Byline Bancorp's performance:
| Metric | Value |
|---|---|
| Total Assets | $9.4 billion |
| Total Loans and Leases | $6.9 billion |
| Total Deposits | $7.5 billion |
| Total Stockholders’ Equity | $1.1 billion |
| Net Income (Q3 2024) | $30.3 million |
| Earnings Per Share (Q3 2024) | $0.70 (Basic), $0.69 (Diluted) |
| Return on Assets (ROA) | 1.29% |
| Return on Equity (ROE) | 11.39% |
Regulatory Capital Ratios
As of September 30, 2024, Byline Bancorp maintained robust capital ratios, indicating strong financial health:
| Capital Ratio | Company | Bank |
|---|---|---|
| Total Capital to Risk-Weighted Assets | 14.41% | 13.82% |
| Tier 1 Capital to Risk-Weighted Assets | 12.39% | 12.69% |
| Common Equity Tier 1 (CET1) to Risk-Weighted Assets | 11.35% | 12.69% |
| Tier 1 Capital to Average Assets | 11.18% | 11.44% |
Recent Developments
On July 1, 2023, Byline Bancorp completed the acquisition of Inland Bancorp, Inc. This merger expanded Byline's market presence and enhanced its service capabilities. Additionally, on September 30, 2024, Byline announced a proposed acquisition of First Security Bancorp, expected to close in the first half of 2025.
Community Engagement and Social Responsibility
Byline Bancorp emphasizes its commitment to community engagement through various initiatives aimed at supporting local development and financial literacy. This aligns with its mission to foster strong relationships with customers and communities.
Dividend Information
For the three months ended September 30, 2024, Byline declared dividends of $4.0 million on common shares. For the nine months ended September 30, 2024, total dividends declared were $11.9 million, reflecting the company's commitment to returning value to its shareholders.
Investment in Technology
Byline Bancorp continues to invest in technology to enhance customer experience and streamline operations. This investment focuses on digital banking solutions and improving service efficiency, aligning with their mission to provide innovative financial solutions.
Conclusion
Byline Bancorp, Inc. remains dedicated to its mission of being a trusted financial partner, emphasizing exceptional service, community support, and financial innovation as key pillars of its operational strategy.
How Byline Bancorp, Inc. (BY) Works
Overview of Financial Performance
For the three months ended September 30, 2024, Byline Bancorp reported a consolidated net income of $30.3 million, or $0.70 per basic share and $0.69 per diluted share. This reflects an increase from $28.2 million, or $0.66 per basic share and $0.65 per diluted share for the same period in 2023. For the nine months ended September 30, 2024, net income was $90.4 million, or $2.08 per basic share and $2.07 per diluted share, compared to $78.3 million, or $2.01 per basic share and $1.98 per diluted share in 2023.
Key Financial Metrics
| Metric | Q3 2024 | Q3 2023 | 9M 2024 | 9M 2023 |
|---|---|---|---|---|
| Net Income | $30.3 million | $28.2 million | $90.4 million | $78.3 million |
| Earnings Per Share (Basic) | $0.70 | $0.66 | $2.08 | $2.01 |
| Earnings Per Share (Diluted) | $0.69 | $0.65 | $2.07 | $1.98 |
| Return on Average Assets | 1.29% | 1.30% | 1.32% | 1.34% |
| Return on Average Equity | 11.39% | 12.11% | 11.81% | 12.48% |
Balance Sheet Highlights
As of September 30, 2024, Byline Bancorp had total assets of $9.4 billion, total gross loans and leases outstanding of $6.9 billion, total deposits of $7.5 billion, and total stockholders’ equity of $1.1 billion.
Net Interest Income
Net interest income for the three months ended September 30, 2024 was $87.7 million, compared to $92.7 million for the same period in 2023. The net interest margin was 3.89% for Q3 2024 and 4.47% for Q3 2023. For the nine months ended September 30, 2024, net interest income was $260.2 million, compared to $245.0 million for the same period in 2023.
Capital Ratios
| Capital Ratio | Q3 2024 | Q3 2023 |
|---|---|---|
| Common Equity Tier 1 Capital Ratio | 11.35% | 10.08% |
| Tier 1 Capital Ratio | 12.39% | 11.12% |
| Total Capital Ratio | 14.41% | 13.17% |
| Leverage Ratio | 11.18% | 10.75% |
Operational Insights
The company's operations are driven by net interest income, which represents the difference between interest earned on loans and leases and interest paid on deposits and borrowings. Non-interest income is derived from fees and service charges, loan servicing revenue, and other sources.
Dividends and Shareholder Returns
Dividends declared on common shares were $4.0 million for Q3 2024, with dividends paid amounting to $3.9 million. For the nine months ended September 30, 2024, dividends declared were $11.9 million and paid were $11.9 million.
Recent Acquisitions
On July 1, 2023, Byline Bancorp completed the acquisition of Inland Bancorp, Inc. Additionally, on September 30, 2024, Byline announced a proposed acquisition of First Security Bancorp, Inc., which reported $354.8 million in assets as of June 30, 2024.
Loan Portfolio Overview
As of September 30, 2024, Byline Bancorp's total loans and leases included significant amounts in commercial real estate, residential real estate, and commercial and industrial loans. Non-accrual loans totaled $6.5 million in commercial real estate, $3.0 million in residential real estate, and $3.3 million in commercial and industrial loans.
Liquidity and Funding Sources
As of September 30, 2024, Byline Bank had maximum advance potential from the Federal Home Loan Bank (FHLB) of $3.4 billion and $781.0 million from the Federal Reserve Bank (FRB). Open FHLB advances totaled $470.0 million.
How Byline Bancorp, Inc. (BY) Makes Money
Revenue Streams
Byline Bancorp, Inc. generates revenue through two primary sources: net interest income and non-interest income.
Net Interest Income
Net interest income is derived from the difference between interest income on loans and leases and interest expense on deposits and borrowings. For the nine months ended September 30, 2024, Byline reported:
| Category | Amount ($ in thousands) | Average Yield (%) |
|---|---|---|
| Loans and Leases | 6,827,726 | 7.48 |
| Taxable Securities | 1,508,987 | 3.02 |
| Tax-Exempt Securities | 156,085 | 2.78 |
| Total Interest-Earning Assets | 8,961,650 | 6.51 |
| Total Interest Expense | 58,981 | 3.67 |
For the three months ended September 30, 2024, net interest income was reported as:
| Category | Amount ($ in thousands) | Average Yield (%) |
|---|---|---|
| Net Interest Income | 87,455 | 3.88 |
| Net Interest Margin | 3.88 |
Non-Interest Income
Non-interest income includes fees for services, loan servicing revenue, and income from wealth management. For the nine months ended September 30, 2024, Byline reported:
| Non-Interest Income Source | Amount ($ in thousands) |
|---|---|
| Service Charges on Deposits | 8,258 |
| Loan Servicing Revenue | 5,324 |
| Wealth Management Income | 3,210 |
| ATM and Interchange Fees | 2,456 |
| Net Gains on Sales of Loans | 17,433 |
| Total Non-Interest Income | 28,681 |
Expenses
Byline Bancorp's expenses include interest expenses, non-interest expenses, and provisions for credit losses. For the three months ended September 30, 2024, the following were reported:
| Expense Category | Amount ($ in thousands) |
|---|---|
| Interest Expense | 58,981 |
| Non-Interest Expense | 40,000 |
| Provision for Credit Losses | 4,750 |
Financial Performance Indicators
Key performance metrics for Byline Bancorp as of September 30, 2024 include:
| Metric | Value |
|---|---|
| Return on Average Assets | 1.29% |
| Return on Average Equity | 11.39% |
| Efficiency Ratio | 52.02% |
| Book Value per Share | $24.70 |
Growth Strategies
Byline Bancorp continues to focus on organic growth through loan origination and strategic acquisitions. As of September 30, 2024, total loans and leases amounted to:
| Loan Type | Amount ($ in thousands) |
|---|---|
| Commercial Real Estate | 2,006,175 |
| Residential Real Estate | 704,352 |
| Commercial and Industrial | 1,288,588 |
| Total Loans and Leases | 6,879,446 |
In the first half of 2024, Byline Bancorp announced an agreement to acquire First Security Bancorp, expected to further enhance its market position and asset base.
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Article updated on 8 Nov 2024
Resources:
- Byline Bancorp, Inc. (BY) Financial Statements – Access the full quarterly financial statements for Q3 2024 to get an in-depth view of Byline Bancorp, Inc. (BY)' financial performance, including balance sheets, income statements, and cash flow statements.
- SEC Filings – View Byline Bancorp, Inc. (BY)' latest filings with the U.S. Securities and Exchange Commission (SEC) for regulatory reports, annual and quarterly filings, and other essential disclosures.