Byline Bancorp(US:BY)2025-11-07 21:31Acquisition and Mergers - Byline Bancorp, Inc. completed the acquisition of First Security Bancorp, Inc. on April 1, 2025, merging its subsidiary First Security Trust and Savings Bank into Byline Bank[206] Financial Performance - Consolidated net income for the three months ended September 30, 2025, was $37.2 million, an increase of $6.9 million from $30.3 million for the same period in 2024[230] - Basic and diluted earnings per common share for the three months ended September 30, 2025, were $0.82, compared to $0.70 and $0.69 for the same period in 2024[230] - Consolidated net income for the nine months ended September 30, 2025, was $95.5 million, an increase of $5.1 million from $90.4 million for the same period in 2024[233] - Total revenue for the nine months ended September 30, 2025, was $100.4 million, compared to $90.9 million for the same period in 2024, indicating a 10.4% growth[352] Net Interest Income - Net interest income increased by $12.4 million, primarily due to lower rates paid on deposits[231] - Net interest income for the three months ended September 30, 2025, was $99,871, compared to $87,455 for the same period in 2024, reflecting an increase of 14.7%[240] - Net interest income for the nine months ended September 30, 2025, was $284.1 million, an increase of $24.5 million or 9.5% compared to $259.5 million in the same period of 2024[248] - The net interest margin for the three months ended September 30, 2025, was 4.27%, an increase of 39 basis points from 3.88% in the same period of 2024[250] Credit Losses and Risk Management - The allowance for credit losses (ACL) is maintained at a level deemed appropriate by management, reflecting current expected credit losses over the life of financial assets[211] - Management utilizes a combination of internal and external data to estimate expected credit losses, adjusting for macroeconomic variables such as unemployment rates[214] - The allowance for credit losses on loans and leases was $109,877, up from $101,001, indicating a focus on risk management[240] - The ACL computation includes factors such as actual loss experience, changes in portfolio size and risk profile, and prevailing economic conditions[303] Asset and Liability Management - Total assets increased to $9,716,920, up from $9,373,849, representing a growth of 3.66% year-over-year[240] - Total liabilities rose by $169.7 million, or 2.0%, to $8.6 billion at September 30, 2025, with total deposits increasing by $369.6 million, or 5.0%[278] - The total capital to risk-weighted assets ratio for Byline Bank was 14.35% as of September 30, 2025, exceeding the required minimum of 8.00%[335] Non-Interest Income - Non-interest income to total revenues was 13.71% for the three months ended September 30, 2025, compared to 14.13% for the same period in 2024[227] - Total non-interest income for the nine months ended September 30, 2025, was $45.2 million, a 5.9% increase from $42.7 million in the same period of 2024[258] Expenses - Total non-interest expense for the three months ended September 30, 2025, was $60.5 million, an increase of $6.2 million or 11.4% compared to the same period in 2024[265] - Salaries and employee benefits increased to $37.5 million for the three months ended September 30, 2025, up $2.5 million or 7.2% from 2024[265] Loans and Leases - Total loans and leases increased to $7.4 billion as of September 30, 2025, up $533.9 million or 7.7% from $6.9 billion at December 31, 2024[287] - The loan portfolio included $428.2 million of unguaranteed 7(a) SBA and USDA loans, with the top three industries being retail trade (20.6%), accommodation and food services (13.4%), and health care and social assistance (8.3%)[288] Capital Management - The common equity tier 1 capital ratio was 12.15% as of September 30, 2025, compared to 11.35% as of September 30, 2024[227] - Byline Bank's stockholders' equity increased to $1.2 billion, up $146.2 million or 13.4% from $1.1 billion at December 31, 2024[331] Regulatory Compliance - The Company and Byline Bank were considered "well-capitalized" as of September 30, 2025, exceeding all applicable regulatory capital requirements[334] Dividends and Stock Repurchase - Dividends declared for the three months ended September 30, 2025, were $4.6 million, an increase from $4.0 million in the same period of 2024[341] - The company purchased 7,424 shares and 577,023 shares under the stock repurchase program during the three and nine months ended September 30, 2025, respectively[340] Interest Rate Risk Management - Interest rate risk management is overseen by the Board of Directors and management asset liability committees[359] - The company evaluates interest rate risk using net interest income (NII) and economic value of equity (EVE) simulations[363]