Byline Bancorp(US:BY)2024-11-01 20:03Financial 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]