CHICAGO, May 12, 2025 (GLOBE NEWSWIRE) -- Byline Bank today announced the expansion of its Payments and Fintech Banking division, including several key new hires and leadership appointments, which underscore the bank's significant investment in embedded finance and modern digital payment solutions. Since bringing on industry veterans David Prochnow and Joe Wolsfeld to lead the fintech banking group in March 2024, Byline has taken significant steps in the fintech payments arena. Prior to joining Byline, Proc ...

In Q1 2025 Inbank earned a consolidated net profit of 4.5 million euros, increasing 14% year-on-year. The return on equity (ROE) in Q1 stood at 12.3%. In Q1 2025, Inbank’s total net income reached 20.7 million euros, reflecting an 18% increase compared to the same period last year, driven by consistently improving margins and portfolio growth across both CEE and the Baltics regions. Total operating expenses amounted to 11.1 million euros, which is an 11% increase year-on-year. As a result, Inbank’s cost-i ...

Financial Data and Key Metrics Changes - The company reported net interest income of $25.1 million, up 6.6% from the previous quarter, and $26.3 million on a fully taxable equivalent basis, reflecting a strong performance [27] - Total operating revenue grew over 2% quarter-over-quarter and more than 22% year-over-year, driven by a 7% increase in net interest income compared to the fourth quarter and 20% compared to the first quarter of 2024 [8][9] - Net income for the quarter was $900,000, with diluted earnings per share of $0.11, significantly impacted by elevated provisions for loan losses [13] Business Line Data and Key Metrics Changes - Small business lending origination yields remained strong, with a weighted average rate on funded originations at 7.78%, up 50 basis points from the prior quarter [11] - The construction and commercial real estate team originated almost $70 million in new commitments, contributing to an 8% annualized loan growth [18] - Noninterest income for the quarter was $10.4 million, down 35% from the fourth quarter, primarily due to lower net servicing revenue [29] Market Data and Key Metrics Changes - Total deposits increased by $111 million or over 2% during the first quarter, driven by growth in FinTech partnership deposits [22] - Non-maturity deposits rose almost $335 million or 15%, reflecting the increase in FinTech partnership deposits [22] - Total FinTech partnership revenue was over $1.1 million in the first quarter, up 30% from the fourth quarter [22] Company Strategy and Development Direction - The company aims to continue improving its loan mix and anticipates a reduction in deposit costs, positioning itself for stronger earnings in the coming quarters [102] - The focus remains on expanding existing FinTech partnerships and exploring new lending opportunities, with a cautious approach to the number of new programs [92] - The company is committed to maintaining a strong asset quality and managing credit risks effectively, particularly in the small business lending and franchise finance portfolios [17][80] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the continued growth of net interest income and net interest margin throughout 2025, assuming no further rate actions from the Fed [10] - The company acknowledged economic uncertainties but noted a slowdown in new delinquencies, providing optimism for moderating provisions for credit losses in the second half of the year [38] - Management highlighted the importance of controlling expenses and maintaining strong operational performance despite challenges in the credit environment [9][17] Other Important Information - The allowance for credit losses as a percentage of total loans was 1.11% at the end of the first quarter, reflecting specific reserves taken on certain loan relationships [31] - The tangible common equity ratio was 6.55%, with a common equity Tier one capital ratio of 9.16%, indicating solid capital levels [34] Q&A Session Summary Question: Expected one-time impact on fees in Q2 - Management estimated a total noninterest income for Q2 to be around $5 million to $6 million, with expectations to return to previous levels in the latter half of the year [44] Question: Average loan size in SBA - The average loan size is just over $1 million, indicating that the reinstated fees for smaller loans do not significantly impact the company [47] Question: Impact of a 25 basis point rate cut on NII - A 25 basis point rate cut would result in an annualized impact of approximately $3.6 million on net interest income, with a gradual ramp-up over the year [49] Question: Updated thoughts on SBA loss assumptions - Management noted that while loss rates have been elevated, they expect a decline in charge-offs as economic conditions stabilize [56] Question: Share buybacks and balance sheet growth - The company is preparing to consider share buybacks if the stock price remains below 50% of book value, while also managing balance sheet growth effectively [63] Question: Update on fintech partnerships - The company is experiencing strong growth in existing fintech partnerships and is cautiously optimistic about expanding these relationships [92]

Financial Data and Key Metrics Changes - The company reported net interest income of $25.1 million, up 6.6% from the previous quarter, and $26.3 million on a fully taxable equivalent basis, reflecting a strong performance [26][27] - Total operating revenue grew over 2% quarter-over-quarter and more than 22% year-over-year, driven by strong loan growth and declining deposit costs [8][9] - Net income for the quarter was $900,000, with diluted earnings per share of $0.11, significantly impacted by elevated provisions for loan losses [13][14] Business Line Data and Key Metrics Changes - Small business lending origination yields remained strong, with a weighted average rate on funded originations at 7.78%, up 50 basis points from the prior quarter [11][12] - The construction and commercial real estate team originated nearly $70 million in new commitments, contributing to an 8% annualized loan growth [17][19] - Noninterest income for the quarter was $10.4 million, down 35% from the previous quarter, primarily due to lower net servicing revenue [29][30] Market Data and Key Metrics Changes - Total deposits increased by $111 million or over 2% during the first quarter, driven by growth in FinTech partnership deposits [21][22] - Non-maturity deposits rose almost $335 million or 15%, reflecting the increase in FinTech partnership deposits [21][22] - Total FinTech partnership revenue was over $1.1 million in the first quarter, up 30% from the fourth quarter, indicating strong growth in this segment [22][94] Company Strategy and Development Direction - The company aims to continue diversifying revenue streams through embedded finance partnerships and expects to drive revenue growth and enhanced profitability [19][102] - The focus remains on controlling costs and managing credit quality, particularly in small business lending and franchise finance portfolios [9][16] - The company anticipates continued growth in net interest income and net interest margin throughout 2025, assuming no further rate actions from the Federal Reserve [10][34] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the ongoing improvement of loan origination yields and the ability to manage deposit costs effectively [10][34] - The economic environment remains uncertain, but there are signs of improvement in borrower interactions and delinquencies [56][74] - The company expects a temporary decline in gain on sale revenue due to changes in SBA loan processes but anticipates a return to normalized levels in the second half of the year [35][36] Other Important Information - The allowance for credit losses as a percentage of total loans was 1.11%, reflecting specific reserves taken on certain loan relationships [31] - The tangible common equity ratio was 6.55%, indicating solid capital levels despite a slight decline [33] - The company has a strong liquidity position with cash and unused borrowing capacity of $2.1 billion [25] Q&A Session Summary Question: Expected one-time impact on fees in Q2 - Management estimates a one-time impact on noninterest income for Q2 to be in the range of $5 million to $6 million, with a return to normal levels expected in the latter half of the year [43][45] Question: Average loan size in SBA and impact of reinstated fees - The average loan size is just over $1 million, meaning reinstated fees on smaller loans will not significantly impact the company [46][47] Question: Impact of a 25 basis point rate cut on net interest income - A 25 basis point rate cut would result in an annualized decrease of approximately $3.6 million in net interest income, with a gradual ramp-up effect over the year [48][49] Question: Updated thoughts on SBA loss assumptions - Management noted that while loss rates have been elevated, they expect a decline in charge-off activity moving forward, with current delinquencies showing improvement [56][59] Question: Share buyback plans - The company is considering share buybacks if the stock price remains below 50% of book value, indicating a potential opportunity to return capital to shareholders [62] Question: Update on fintech partnerships and pipeline - The company is experiencing strong growth in existing fintech partnerships and is cautiously optimistic about new opportunities, focusing on quality over quantity [91][94]

Group 1: Visa's Collaboration and Solution - Visa has partnered with four major Australian banks (ANZ, HAB, HSBC, Westpac) to launch Visa B2B Integrated Payments (VBIP) in Australia [1] - The VBIP solution, integrated into the SAP Business Technology Platform, automates B2B payments, reducing the need for reconciliation and enhancing productivity for administration and finance teams [2] - Visa plans to expand its partnerships with additional local banks in the future [2] Group 2: Benefits and Market Trends - The VBIP aims to alleviate pain points for business owners, making B2B payments as seamless as consumer transactions [3] - Automating payment processes can help growing companies manage supplier payments and cash flow more effectively, reducing the risk of late fees [4] - The rise of embedded finance solutions is transforming the B2B payment landscape, with digital marketplaces facilitating easier transactions between suppliers and buyers [5][6] Group 3: Challenges in B2B Payments - Historically, B2B payments have lagged behind consumer payments due to outdated systems, while consumer transactions benefit from digital wallets and real-time payments [7] - Legacy banking infrastructures, regulatory complexities, and entrenched business processes contribute to the inertia in B2B payment innovations [8]

Financial Data and Key Metrics Changes - Total Process Volume (TPV) reached $80 billion in Q4, a 29% increase compared to the same quarter of 2023 [7][22] - Q4 net revenue was $136 million, growing 14% year over year [7][25] - Gross profit for Q4 was $98 million, an 18% increase year over year, resulting in a gross margin of 72% [8][27] - Adjusted EBITDA was $13 million in Q4, translating into a 9% margin, marking new all-time highs for the company [29][30] Business Line Data and Key Metrics Changes - Financial services, lending (including buy now pay later), and expense management all grew at roughly the same rate in Q4, slightly faster than the overall company [24] - Non-block neo banking customers' TPV grew approximately 100% year over year [25] - Growth in expense management accelerated due to strong end-user acquisition as AP automation and modern corporate card platforms gained share [25] Market Data and Key Metrics Changes - The European business saw TPV growth well over 100% in Q4 [12] - The company secured a deal to provide commercial card processing and program management to a fast-growing technology company in Europe [12] - The pipeline for embedded finance customers has increased significantly, with roughly two-thirds of the current pipeline being embedded finance customers [55] Company Strategy and Development Direction - The company aims to establish itself as a preferred partner for embedded finance and fintech innovations through three strategic pillars: deepening platform breadth, expanding solutions, and strengthening leadership in payments innovation [15][44] - The acquisition of TransactPay is expected to enhance program management offerings in Europe and streamline operations [18][36] - The company plans to leverage the American Express network for credit and debit card programs starting later in 2025 [16] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in capturing compelling opportunities in the payment ecosystem while focusing on profitable growth and value creation [6][15] - The company anticipates net revenue growth of 16-18% for 2025, driven by TPV growth in the mid to high 20s [32] - Management highlighted the importance of maintaining a strong focus on compliance while driving profitable growth [21][43] Other Important Information - The company ended Q4 with $1.1 billion in cash and short-term investments [29] - A share buyback authorization of $300 million was approved, bringing the total authorization to $380 million [31] Q&A Session Summary Question: What exactly is being acquired with TransactPay? - TransactPay is a BIN sponsorship provider licensed with an eMoney institution, allowing the company to have more control over offerings in Europe [48][50] Question: How does the pipeline look now, especially after recent wins? - The pipeline is strong, with a significant increase in embedded finance customers, indicating growing momentum in the market [55][56] Question: Does Marketa have everything needed to win larger embedded finance deals? - Yes, the company has a full solution that includes money movement, issuer processing, and program management, which positions it well for larger deals [62][64] Question: Is the guidance for 2025 based on the acquisition of TransactPay? - Yes, the guidance assumes the acquisition will close around Q3 2025 [68] Question: What is the path to GAAP profitability by 2026? - The company expects to drive gross profit growth at a faster rate than expense growth, leading to GAAP profitability on a quarterly basis by 2026 [70][73]