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

Financial Performance Highlights - Byline reported revenue of $406.9 million for the year [8] - Diluted EPS reached $2.75 [8] - Net income for the fourth quarter was $30.3 million, with an EPS of $0.69 [12] - Pre-Tax Pre-Provision income for the fourth quarter was $47.2 million, resulting in a Pre-Tax Pre-Provision ROAA of 2.04% [12] Balance Sheet Strength - Total deposits amounted to $7.5 billion [8, 26] - Loans and leases totaled $6.9 billion [8, 17] - The CET1 ratio increased to 11.70% [9, 12] - Tangible book value per share increased by 11.7% year-over-year to $20.09 [9] Loan and Deposit Trends - Total loan portfolio remained relatively flat at $6.9 billion in Q4 2024 [8, 17] - The average loan yield was 7.21% [17] - Non-Interest-Bearing deposits accounted for 23.5% of total deposits [19, 26]

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 ...

Financial Performance - Fourth quarter net income was $30.3 million, with diluted earnings per share of $0.69, while full year net income reached $120.8 million, or $2.75 diluted earnings per share[1]. - Net interest income for Q4 2024 was $88.5 million, an increase of $1.1 million, or 1.2%, from Q3 2024, and full year net interest income was $348.0 million, up $17.4 million, or 5.3% from 2023[4][7]. - Non-interest income for Q4 2024 was $16.1 million, an increase of $1.8 million, or 12.3%, compared to Q3 2024, and full year non-interest income was $58.9 million, up $2.5 million, or 4.5% from 2023[13][15]. - Total revenue for Q4 2024 reached $104,673, compared to $101,840 in Q3 2024 and $100,788 in Q4 2023, reflecting a growth of approximately 2.7% quarter-over-quarter and 3.7% year-over-year[60]. - Adjusted net income for the quarter was $30,537 thousand, compared to $31,827 thousand in the same quarter last year, representing a decrease of 4.1%[59]. - Adjusted net income for the year ended December 31, 2024, was $121,497,000, compared to $116,799,000 for the year ended December 31, 2023[61]. Asset and Liability Management - Total assets increased to $9.5 billion, an increase of $614.6 million, or 6.9% year-over-year[1]. - Total assets as of December 31, 2024, were $9,496,529, compared to $9,424,316 as of September 30, 2024, and $8,881,967 as of December 31, 2023[60]. - Total deposits decreased by $39.3 million to $7.5 billion compared to the previous quarter, but increased by $281.6 million from $7.2 billion year-over-year[32]. - Total stockholders' equity was $1.1 billion, a decrease of $4.8 million from the previous quarter but an increase of $101.3 million or 10.2% from the previous year[34]. - Total borrowings and other liabilities increased to $946.4 million, up $231.6 million from $714.8 million a year earlier, driven by higher FHLB advances[33]. Credit Quality - Provision for credit losses for Q4 2024 was $6.9 million, a decrease of $597,000 from Q3 2024, and full year provision was $27.0 million, down $4.6 million from 2023[10][11]. - The allowance for credit losses (ACL) was $98.0 million, a decrease of $3.7 million from $101.7 million as of December 31, 2023, attributed to lower provisions and higher charge-offs[27]. - Net charge-offs for the year were $32.0 million, or 0.47% of average loans and leases, an increase from $23.1 million or 0.38% the previous year[29]. - Non-performing assets decreased to $67.2 million, or 0.71% of total assets, down from $71.0 million or 0.75% at the end of the previous quarter[30]. - Non-performing loans and leases decreased to 0.90% in Q4 2024 from 1.02% in Q3 2024[48]. Efficiency and Ratios - The efficiency ratio for Q4 2024 was 53.58%, an increase of 156 basis points from Q3 2024, while the full year efficiency ratio was 52.45%, a decrease of 17 basis points from 2023[18][20]. - Return on average stockholders' equity for Q4 2024 was 11.03%, down from 11.39% in Q3 2024[48]. - Common equity tier 1 capital ratio improved to 11.70% in Q4 2024, compared to 11.35% in Q3 2024[48]. - Total capital ratio for Q4 2024 was 14.74%, up from 14.41% in Q3 2024[48]. - Adjusted efficiency ratio for Q4 2024 was 53.37%, compared to 48.64% in Q4 2023, showing a decline in efficiency[61]. Dividends and Shareholder Returns - The company declared a cash dividend of $0.10 per share, representing an 11.1% increase from the previous dividend of $0.09 per share[3]. - Cash dividends per common share remained stable at $0.09 for both Q4 2024 and Q3 2024[48]. - Basic earnings per share for the year ended December 31, 2024, was $2.78, an increase from $2.69 in 2023, representing a growth of 3.4%[46]. - Diluted earnings per common share for the year ended December 31, 2024, increased to $2.75 from $2.67 in 2023[48]. - Tangible book value per share increased to $20.09 in Q4 2024 from $17.98 in Q4 2023, reflecting a growth of 6.2%[61]. Strategic Initiatives - The company is advancing its strategy with a pending acquisition of First Security Bancorp, Inc., aiming to strengthen its franchise and create lasting value for stockholders[1].

Core Viewpoint - Byline Bancorp (BY) is expected to report a quarterly earnings per share (EPS) of $0.60, reflecting a year-over-year decline of 17.8%, with revenues projected at $100.1 million, a decrease of 0.7% compared to the previous year [1] Earnings Estimates - Revisions to earnings estimates are crucial indicators for predicting investor actions regarding the stock, with empirical research showing a strong correlation between earnings estimate trends and short-term stock performance [2] Analyst Forecasts - Analysts predict a 'Net Interest Margin' of 3.9%, down from 4.1% a year ago [4] - The expected 'Efficiency Ratio' is 55.4%, compared to 51.6% in the same quarter last year [4] - 'Average Balance - Total interest-earning assets' is estimated to reach $8.85 billion, up from $8.39 billion a year ago [4] Income Estimates - Total Non-Interest Income is estimated at $14.25 million, slightly down from $14.50 million a year ago [5] - Net Interest Income is projected to be $86.07 million, compared to $86.29 million in the previous year [5] - 'Net gains on sales of loans' are expected to be $5.64 million, up from $5.48 million in the same quarter last year [6] Stock Performance - Byline Bancorp shares have decreased by 2.4% over the past month, while the Zacks S&P 500 composite has seen a decline of 0.4% [7] - With a Zacks Rank 2 (Buy), Byline Bancorp is expected to outperform the overall market in the near term [7]

Group 1 - The article emphasizes the importance of value investing as a preferred strategy for identifying strong stocks in various market conditions [2][3] - Byline Bancorp (BY) is highlighted as a stock to watch, currently holding a Zacks Rank of 2 (Buy) and a Value grade of A [3] - BY has a price-to-book (P/B) ratio of 1.15, which is favorable compared to the industry average of 1.28, indicating solid valuation metrics [4] Group 2 - BY's price-to-cash flow (P/CF) ratio is 10.66, significantly lower than the industry average of 24.02, suggesting it may be undervalued based on cash flow outlook [5] - Eagle Bancorp (EGBN) is another stock to consider, rated 1 (Strong Buy) with a Value Score of A and a P/B ratio of 0.61, also below the industry average [6] - Both BY and EGBN are characterized by strong earnings outlooks, reinforcing their status as impressive value stocks at present [7]

Financial Performance - Consolidated net income for the three months ended September 30, 2024, was $30.3 million, or $0.70 per basic share, compared to $28.2 million, or $0.66 per basic share for the same period in 2023, representing an increase of 7.4%[121] - For the nine months ended September 30, 2024, consolidated net income was $90.4 million, or $2.08 per basic share, up from $78.3 million, or $2.01 per basic share in the same period of 2023, an increase of 15.6%[121] - Basic earnings per common share increased to $0.70 from $0.66 year-over-year, while diluted earnings per common share rose to $0.69 from $0.65[133] - Reported net income for the three months ended September 30, 2024, was $30,328 thousand, an increase from $28,222 thousand for the same period in 2023, representing a growth of approximately 7.4%[182] - Adjusted net income for the nine months ended September 30, 2024, was $90,960 thousand, compared to $84,972 thousand for the same period in 2023, reflecting an increase of about 7.0%[182] Assets and Liabilities - Total assets as of September 30, 2024, were $9.4 billion, with total gross loans and leases outstanding at $6.9 billion and total deposits at $7.5 billion[121] - Total assets as of September 30, 2024, were $9,424,316, compared to $8,943,368 as of September 30, 2023, indicating an increase of 5.4%[184] - Total liabilities increased by $436.2 million or 5.5% to $8.3 billion at September 30, 2024, compared to $7.9 billion at December 31, 2023[147] - Total stockholders' equity as of September 30, 2024, was $1,022,548 million, an increase from $838,792 million in 2023[139] Income and Expenses - The company declared dividends of $4.0 million for the three months ended September 30, 2024, compared to $3.9 million for the same period in 2023[121] - A $3.6 million decrease in non-interest expense contributed to the increase in net income for the three months ended September 30, 2024[121] - Total non-interest income for the three months ended September 30, 2024, was $14.4 million, an increase of $2.0 million or 16.2% compared to $12.4 million for the same period in 2023[143] - Total non-interest expense for the three months ended September 30, 2024, was $54.3 million, a decrease of $3.6 million or 6.2% compared to $57.9 million for the same period in 2023[144] Credit Quality - The provision for credit losses decreased by $4.3 million for the nine months ended September 30, 2024, compared to the same period in 2023[121] - Non-performing loans and leases to total loans and leases held for investment increased to 1.02% from 0.79% year-over-year, suggesting a rise in credit risk[133] - Total non-performing loans and leases amounted to $70.5 million at September 30, 2024, up from $64.1 million at December 31, 2023[165] - The allowance for credit losses as a percentage of non-performing loans and leases was 140.21% at September 30, 2024, down from 158.62% at December 31, 2023[165] Interest Income and Margin - The net interest margin decreased to 3.88% from 4.46% year-over-year, indicating a decline in interest income relative to interest-bearing liabilities[133] - Net interest income for the nine months ended September 30, 2024, was $259.5 million, an increase of $15.2 million or 6.2% compared to $244.3 million during the same period in 2023[141] - Total interest income for the nine months ended September 30, 2024, was $82,490 million, an increase of $18,361 million compared to the same period in 2023[140] Capital and Regulatory Compliance - Byline Bank exceeded all regulatory capital requirements as of September 30, 2024, with total capital to risk-weighted assets at 14.41% for the Company and 13.82% for the Bank, both well above the minimum required ratios[173] - Stockholders' equity increased to $1.1 billion as of September 30, 2024, up 10.7% from $990.2 million at December 31, 2023, primarily due to increased retained earnings and reduced unrealized losses in available-for-sale securities[172] Acquisitions and Market Presence - The acquisition of Inland Bancorp, Inc. was completed on July 1, 2023, enhancing the company's market presence[122] - A proposed acquisition of First Security Bancorp, Inc. was announced on September 30, 2024, with First Security Bancorp reporting $354.8 million in assets as of June 30, 2024[123] Efficiency and Management - The efficiency ratio improved to 52.02% from 53.75% year-over-year, indicating better cost management[133] - The adjusted efficiency ratio for the three months ended September 30, 2024, was 51.62%, compared to 47.35% in the same period last year, indicating a decline in efficiency[185] Interest Rate Risk Management - Interest rate risk is the primary market risk, with a focus on managing net interest income and net interest margin[186] - The company utilizes NII and EVE simulations to evaluate interest rate risk and its potential impact on financial performance[188]