Byline Bancorp(US:BY)2026-02-27 22:18Financial Position - As of December 31, 2025, the company had goodwill of $181.9 million, representing 14.3% of total stockholders' equity[182]. - Total consolidated assets were reported at $9.7 billion as of December 31, 2025, with expectations to exceed $10 billion in the future[200]. - As of December 31, 2025, the company had $7.6 billion in deposits, which are subject to fluctuations due to competitive pressures and interest rate changes[208]. - Total assets increased to $9.652 billion in 2025 from $9.497 billion in 2024, representing a growth of approximately 1.6%[412]. - The total stockholders' equity increased to $1.268 billion in 2025 from $1.091 billion in 2024, representing a growth of about 16.2%[412]. - The company reported a total revenue of $7,509,369 thousand for the period[1]. - The total allowance for credit losses was maintained at a level that supports the current loan portfolio, with no loans rated as Doubtful or Loss for the years ended December 31, 2025, and 2024[540]. Regulatory Compliance - The company is subject to increased regulatory scrutiny and compliance costs upon exceeding $10 billion in total consolidated assets[200]. - Compliance with the USA PATRIOT Act and the Bank Secrecy Act is critical, with potential fines for non-compliance[194]. - The company is restricted from certain transactions with foreign national stockholders without approval from the FRB[188]. - The company may incur increased costs and operational restrictions due to compliance with privacy and data protection laws[196]. Financial Performance - Net income for 2025 was $130,051 thousand, an increase of 7.7% from $120,759 thousand in 2024[414]. - Basic earnings per share increased to $2.90 in 2025, up from $2.78 in 2024, representing a growth of 4.3%[414]. - Total interest and dividend income increased to $572,220 thousand in 2025, up from $565,929 thousand in 2024, representing a growth of 0.5%[414]. - Net interest income after provision for credit losses rose to $349,246 thousand in 2025, compared to $321,005 thousand in 2024, reflecting an increase of 8.8%[414]. - Comprehensive income for 2025 reached $170,663 thousand, significantly higher than $107,189 thousand in 2024, indicating a substantial increase[416]. Loan and Credit Quality - The allowance for credit losses for loans and leases was $109 million as of December 31, 2025, reflecting an increase from $97.988 million in 2024[406]. - The allowance for credit losses increased to $36,102,000 in 2025 from $27,041,000 in 2024, reflecting a rise of 33.5%[419]. - The company reported a total of $408,078 million in construction, land development, and other land loans, indicating a focus on real estate development[536]. - The company has a diversified loan portfolio, including installment and other loans, which totaled $17,806 thousand[540]. - The overall credit quality remains stable, with no significant deterioration in loan performance metrics reported[540]. Acquisitions and Goodwill - The company acquired First Security Bancorp, Inc. for approximately $41.5 million, with each share of First Security's common stock converted into 2.3539 shares of Byline common stock[496][497]. - The acquisition resulted in goodwill of $147,000, which is nondeductible for tax purposes, reflecting the premium paid over the fair value of net tangible and intangible assets acquired[498]. - Total assets acquired from First Security amounted to $321.99 million, including cash and cash equivalents of $62.04 million and loans of $149.70 million[501]. - The Company did not record a deferred tax valuation allowance as of December 31, 2025, indicating confidence in the realization of deferred tax assets[476]. Interest Rate Risk - The company is exposed to interest rate risk, which could affect net interest income and net interest margin due to changes in interest rates[382]. - The company’s interest rate risk management is overseen by the Board of Directors and involves simulations to estimate the impact of interest rate changes on net interest income and equity[385]. - In a +300 basis point interest rate scenario, net interest income is estimated to increase by 10.0% in 2026 and 18.2% in 2027, while the economic value of equity (EVE) is projected to decrease by 6.7%[393]. Operational Efficiency and Future Outlook - The company aims to improve operational efficiency through strategic initiatives in the upcoming fiscal year[1]. - Future outlook includes a focus on market expansion and new product development strategies[1]. - The company plans to enhance its technology research and development efforts to drive growth[1]. - The company is exploring potential mergers and acquisitions to strengthen its market position[1].