Byline Bancorp, Inc. (NYSE:BY) Q1 2025 Earnings Conference Call April 25, 2025 10:00 AM ET Company Participants Brooks Rennie - Head, Investor Relations Alberto Paracchini - President Roberto Herencia - Chairman and CEO Tom Bell - Chief Financial Officer and Treasurer Mark Fucinato - Chief Credit Officer Brian Doran - General Counsel Conference Call Participants Nathan Race - Piper Sandler David Long - Raymond James Brendan Nosal - Hovde Group Damon DelMonte - KBW Terry McEvoy - Stephens Brian Martin - Jann ...

Byline Bancorp (BY) has been beaten down lately with too much selling pressure. While the stock has lost 9.6% over the past four weeks, there is light at the end of the tunnel as it is now in oversold territory and Wall Street analysts expect the company to report better earnings than they predicted earlier.How to Determine if a Stock is OversoldWe use Relative Strength Index (RSI), one of the most commonly used technical indicators, for spotting whether a stock is oversold. This is a momentum oscillator th ...

Financial Condition - As of December 31, 2024, the company had goodwill of $181.7 million, representing 16.6% of total stockholders' equity[189] - The company may need to significantly increase the allowance for credit losses or sustain credit losses that are higher than the reserve provided, which could adversely affect financial condition[186] - The company’s ability to recognize deferred tax assets is dependent on future cash flows and taxable income, which are subject to significant estimates[193] - The company faces increased litigation and regulatory risks, which could lead to significant fines and impact financial condition[199] - The company reported a decrease in the allowance for credit losses from $101.686 million in 2023 to $97.988 million in 2024, indicating improved credit quality[423] - The company's allowance for credit losses for loans and leases was $98 million as of December 31, 2024, reflecting a decrease from $101.686 million in 2023[418] - The company has no recorded allowance for credit losses on securities as of December 31, 2024, or 2023[452] - The company maintains an allowance for credit losses on off-balance sheet credit exposures for unfunded loan commitments, reflecting management's estimate of expected losses[471] Regulatory and Compliance Risks - The company is subject to numerous laws designed to protect consumers, and failure to comply could lead to sanctions affecting growth prospects[198] - Non-compliance with the USA PATRIOT Act and the Bank Secrecy Act could result in fines or sanctions, adversely affecting business operations[201] - Regulatory approvals for acquisitions may not be granted on acceptable terms, which could restrict growth[207] Growth and Acquisitions - The company has continued to grow through acquisitions, but risks associated with integration and realization of anticipated benefits could adversely affect profitability[206] - On July 1, 2023, the company acquired Inland Bancorp, Inc. for a total consideration of $138.9 million, which included $107.0 million in common stock and $31.9 million in cash[520][522][528] - The acquisition resulted in goodwill of $33.4 million, reflecting the premium paid over the fair value of net tangible and intangible assets acquired[523] - The company announced a proposed acquisition of First Security Bancorp, Inc. on September 30, 2024, with related acquisition advisory expenses of $629,000 reflected in non-interest expense for the year ended December 31, 2024[533] - The company is expanding its footprint in the Chicagoland market through the acquisition of Inland, diversifying its commercial banking business and strengthening its core deposit base[520] Financial Performance - Net income for 2024 reached $120,759,000, an increase of 11.3% compared to $107,878,000 in 2023[426] - Total interest and dividend income increased to $565,929,000 in 2024, up 18% from $479,478,000 in 2023[426] - Net interest income after provision for credit losses was $321,005,000, reflecting a growth of 7.4% from $298,968,000 in 2023[426] - Non-interest income totaled $58,851,000 in 2024, a slight increase of 4.5% from $56,315,000 in 2023[426] - Total non-interest expense rose to $218,777,000, an increase of 4.3% from $209,603,000 in 2023[426] - Basic earnings per common share for 2024 was $2.78, up from $2.69 in 2023, representing a 3.4% increase[426] - Comprehensive income for 2024 was $107,189,000, a decrease from $125,311,000 in 2023, primarily due to unrealized losses in securities[428] Interest Rate Risk - Interest rate risk is a primary concern, with potential changes in net interest income (NII) and economic value of equity (EVE) based on interest rate fluctuations[392][399] - A hypothetical increase of 300 basis points in interest rates could lead to a 9.3% increase in NII for the year ending December 31, 2025[403] - The company utilizes interest rate derivatives to hedge exposure, with a notional amount of $1.5 billion outstanding as of December 31, 2024[397] - The management of interest rate risk is overseen by the Board of Directors and involves regular simulations to assess potential impacts[395][404] Asset and Deposit Growth - Total assets increased to $9.497 billion in 2024, up from $8.882 billion in 2023, representing a growth of approximately 6.9%[423] - Net loans and leases rose to $6.809 billion in 2024, compared to $6.583 billion in 2023, indicating an increase of about 3.4%[423] - Total deposits reached $7.459 billion in 2024, an increase from $7.177 billion in 2023, marking a growth of approximately 3.9%[423] - The net increase in deposits for 2024 was $280,506,000, a decrease from $515,415,000 in 2023[434] Shareholder Information - The principal stockholder, MBG Investors I, L.P., owns approximately 26.6% of the outstanding shares, influencing key shareholder decisions[212] - The company issued 345,519 shares of common stock upon exercise of stock options in 2024, compared to 59,153 shares in 2023, reflecting a significant increase in stock option exercises[429] - Cash dividends declared on common stock were $15,894,000 for the year ended December 31, 2024, maintaining a consistent dividend of $0.36 per share[429] Securities and Investments - As of December 31, 2024, the total amortized cost of available-for-sale securities was $1,595,583 million, with gross unrealized losses amounting to $181,659 million, resulting in a fair value of $1,415,696 million[536] - The company held 334 available-for-sale securities with unrealized losses as of December 31, 2024, compared to 283 securities at the end of 2023[540] - The fair value of available-for-sale debt securities totaled $1.42 billion as of December 31, 2024, down from $1.60 billion in 2023, a decrease of about 11.5%[546] - The company did not classify any securities as trading during 2024 and 2023, maintaining a focus on available-for-sale and held-to-maturity categories[536] Tax and Deferred Tax Assets - Deferred tax assets and liabilities are adjusted for changes in tax laws and rates on the date of enactment, with no material uncertain tax positions as of December 31, 2024, and 2023[494][495] - The Company evaluates the recoverability of deferred tax assets based on future expected taxable income and has no deferred tax valuation allowance recorded as of December 31, 2024, and 2023[495]

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Financial Data and Key Metrics - The company held its Q4 2024 earnings call on January 24, 2025, discussing both Q4 and full-year 2024 results [1][2][3] - The call was recorded and made available via webcast on the company's Investor Relations website, along with the earnings release and presentation slides [3] Business Line Data and Key Metrics - No specific financial data or key metrics related to business lines were provided in the content Market Data and Key Metrics - No specific market data or key metrics were provided in the content Company Strategy and Industry Competition - Management may make forward-looking statements regarding future events or financial performance, but these are subject to risks and uncertainties that could cause actual results to differ [4] - The company may reference non-GAAP financial measures in its remarks and slides, which are intended to supplement but not substitute for GAAP measures [5] Management Commentary on Operating Environment and Future Outlook - No specific commentary on the operating environment or future outlook was provided in the content Other Important Information - The conference call included a question-and-answer period following the speakers' remarks [2] Q&A Session Summary - No specific questions or answers from the Q&A session were provided in the content

1 4Q24 Earnings Presentation Forward-Looking Statements Forward-Looking Statements This communication contains forward-looking statements within the meaning of the U.S. federal securities laws. Forward-looking statements include, without limitation, statements concerning plans, estimates, calculations, forecasts and projections with respect to the anticipated future performance of the Company. These statements are often, but not always, made through the use of words or phrases such as ''may'', ''might'', '' ...

Byline Bancorp (BY) came out with quarterly earnings of $0.69 per share, beating the Zacks Consensus Estimate of $0.60 per share. This compares to earnings of $0.73 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of 15%. A quarter ago, it was expected that this bank holding company would post earnings of $0.65 per share when it actually produced earnings of $0.70, delivering a surprise of 7.69%.Over the last four quarters, the co ...

Exhibit 99.1 Byline Bancorp, Inc. Reports Fourth Quarter and Full Year 2024 Financial Results Fourth quarter net income of $30.3 million, $0.69 diluted earnings per share Full year net income of $120.8 million, $2.75 diluted earnings per share Chicago, IL, January 23, 2025 – Byline Bancorp, Inc. (NYSE: BY), today reported: | | | | At or For the quarter | | Full Year Highlights | | --- | --- | --- | --- | --- | --- | | | | 4Q24 | 3Q24 | 4Q23 | (compared to prior year) | | Financial Results ($ in thousands) | ...

Wall Street analysts forecast that Byline Bancorp (BY) will report quarterly earnings of $0.60 per share in its upcoming release, pointing to a year-over-year decline of 17.8%. It is anticipated that revenues will amount to $100.1 million, exhibiting a decline of 0.7% compared to the year-ago quarter.The consensus EPS estimate for the quarter has remained unchanged over the last 30 days. This represents how the covering analysts, as a whole, have reassessed their initial estimates during this timeframe.Prio ...

Here at Zacks, we focus on our proven ranking system, which places an emphasis on earnings estimates and estimate revisions, to find winning stocks. But we also understand that investors develop their own strategies, so we are constantly looking at the latest trends in value, growth, and momentum to find strong companies for our readers.Considering these trends, value investing is clearly one of the most preferred ways to find strong stocks in any type of market. Value investors rely on traditional forms of ...