Core Viewpoint - Momentum investing focuses on following a stock's recent price trends, aiming to buy high and sell higher, with the expectation that established trends will continue [1] Company Overview: Byline Bancorp (BY) - Byline Bancorp currently holds a Momentum Style Score of B and a Zacks Rank of 2 (Buy), indicating strong potential for performance [3][4] - The stock has shown a price increase of 2.28% over the past week, outperforming the Zacks Banks - Northeast industry, which rose by 0.5% [6] - Over the last quarter, shares of Byline Bancorp have increased by 10.22%, and over the past year, they have gained 28.82%, compared to the S&P 500's increases of 3.88% and 24.54%, respectively [7] Trading Volume - Byline Bancorp's average 20-day trading volume is 123,254 shares, which serves as a baseline for price-to-volume analysis [8] Earnings Outlook - In the past two months, one earnings estimate for Byline Bancorp has increased, while none have decreased, raising the consensus estimate from $2.50 to $2.52 [10] - For the next fiscal year, one estimate has also moved upwards with no downward revisions during the same period [10] Conclusion - Given the positive price trends and earnings outlook, Byline Bancorp is positioned as a strong momentum pick with a Momentum Score of B and a Zacks Rank of 2 (Buy) [12]

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]

Core Insights - Byline Bank has been recognized as one of Chicago's Best Workplaces for 2024, ranking 6th among large companies and 25th overall in the city [2][3] - The recognition is based significantly on employee feedback, highlighting the bank's commitment to a collaborative and welcoming workplace culture [3] Company Recognition - Byline Bank was named one of the 2024 Best Workplaces in Illinois by Best Companies Group and the Illinois Society for Human Resource Management [2][3] - The awards aim to identify and honor the best employers in Chicago and Illinois, contributing positively to the local economy and workforce [3] Evaluation Process - The evaluation for the Best Workplaces awards involved a two-part survey process: the first part assessed workplace policies and practices, accounting for approximately 25% of the total evaluation [4] - The second part consisted of an employee survey measuring the employee experience, which contributed about 75% to the overall evaluation [5] Company Profile - Byline Bank, a subsidiary of Byline Bancorp, Inc., is a full-service commercial bank with approximately $9.4 billion in assets and over 40 branch locations in the Chicago and Milwaukee areas [6] - The bank offers a wide range of banking products and services and is recognized as one of the top SBA lenders in the U.S. for FY2024 [6]

Financial Data and Key Metrics Changes - For Q3 2024, the company reported net income of $30.3 million or $0.69 per diluted share on revenue of $102 million, with net income excluding transaction-related charges at $30.7 million or $0.70 per diluted share [10] - Return on Assets (ROA) was 129 basis points, and return on tangible common equity (ROTCE) was 14.5%, with the lower ROTCE attributed to growth in the capital base rather than declining profitability [10][11] - Pre-tax preparation income reached a record of $47.5 million, resulting in a pre-tax pre-provision ROA of 202 basis points, marking the eighth consecutive quarter above 200 basis points [11] Business Line Data and Key Metrics Changes - Total loans remained flat at $6.9 billion, with $212 million in new loans originated and $267 million in pay-offs, indicating a focus on reducing non-core loans [17][12] - Non-interest income increased to $14.4 million, driven by a lower fair value mark on servicing assets and increases in other fees [11][20] - Total deposits grew to $7.5 billion, up 8.2% annualized from the second quarter, with non-interest-bearing demand deposits accounting for 23% of total deposits [13][18] Market Data and Key Metrics Changes - The loan-to-deposit ratio improved to 92%, down 319 basis points year-on-year, reflecting the company's strategy to manage this ratio effectively [13] - Asset quality remained stable, with non-performing loans (NPLs) increasing slightly to 86 basis points, while charge-offs declined to $8.5 million [14][22] Company Strategy and Development Direction - The company is focused on becoming the preeminent commercial bank in Chicago, with a disciplined approach to mergers and acquisitions, exemplified by the announced merger with First Security Bancorp [5][9] - The company aims to attract top commercial banking talent and has received multiple workplace awards, indicating a strong organizational culture [6] - The strategic planning process is ongoing, with optimism about future opportunities and the potential to cross the $10 billion asset threshold by 2025 or 2026 [29][32] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to maintain strong financial performance despite a changing interest rate environment, with expectations for stable to growing net interest income [16][19] - The company anticipates mid-single-digit loan growth for the remainder of the year, supported by healthy business development activity [12][17] - Management remains cautious about credit quality but is well-prepared to handle potential stress in the portfolio, particularly in the SBA segment [52] Other Important Information - The company reported a strong capital position, with CET1 and total capital ratios at 11.35% and 14.4%, respectively, providing flexibility for growth and investment [14][23] - The efficiency ratio stood at 52%, indicating effective cost management [11] Q&A Session Summary Question: Can you expand on your enthusiasm coming out of the strategic planning process? - Management indicated continued opportunities for transactions similar to the recent merger and expressed optimism about the market position as the largest publicly traded commercial bank under $10 billion [28][29] Question: What is the infrastructure status in preparing to cross the $10 billion threshold? - Management stated that preparations have been ongoing, with investments primarily in risk management and control functions, expecting to cross the threshold between late 2025 and early 2026 [31][32] Question: What is the outlook for loan growth and commercial real estate behavior? - Management noted a higher commercial real estate pipeline and indicated that while rates may influence behavior, the current pipeline is strong [35][36] Question: What are the expectations for net interest income (NII) growth? - Management expects stable NII growth, with guidance for Q4 in the $85 million to $87 million range, excluding the impact of acquisitions [33][19] Question: How does the company plan to manage excess capital? - Management indicated that excess capital could be returned to shareholders through dividends or buybacks, depending on future opportunities [38][39]