Byline Bancorp (BY) AI Stock Analysis

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Byline Bancorp

(NYSE:BY)

71Outperform

Byline Bancorp exhibits strong financial performance and is strategically positioned for growth following its merger. Positive earnings call sentiment and attractive valuation enhance its investment appeal. However, technical indicators suggest caution as the stock is trading below key moving averages. Overall, Byline is a promising investment with some short-term technical risks.

Byline Bancorp (BY) vs. S&P 500 (SPY)

Market Cap

$1.12B

Dividend Yield1.48%

Average Volume (3M)183.86K

Price to Earnings (P/E)9.1

Beta (1Y)0.96

Revenue Growth16.41%

EPS Growth3.09%

CountryUS

Employees1,017

SectorFinancial

Sector Strength81

IndustryBanks - Regional

Share Statistics

EPS (TTM)2.75

Shares Outstanding44,683,743

10 Day Avg. Volume197,832

30 Day Avg. Volume183,856

Financial Highlights & Ratios

PEG Ratio2.95

Price to Book (P/B)N/A

Price to Sales (P/S)3.13

Price to Cash Flow (P/CF)5.60

P/FCF Ratio3.60

Enterprise Value/Market CapN/A

Enterprise Value/RevenueN/A

Enterprise Value/Gross ProfitN/A

Enterprise Value/EbitdaN/A

Forecast

1Y Price Target

$33.33

Price Target Upside29.89% Upside

Rating ConsensusModerate Buy

Number of Analyst Covering3

Byline Bancorp Business Overview & Revenue Model

Company DescriptionByline Bancorp, Inc. operates as the bank holding company for Byline Bank that provides various banking products and services for small and medium sized businesses, commercial real estate and financial sponsors, and consumers in the United States. It offers various retail deposit products, including non-interest-bearing accounts, money market demand accounts, savings accounts, interest-bearing checking accounts, and time deposits; ATM and debit cards; and online, mobile, and text banking services, as well as commercial deposits. The company also provides term loans, revolving lines of credit, and construction financing services; senior secured financing solutions to private equity backed lower middle market companies; small business administration and united states department of agriculture loans; and treasury management products and services. In addition, it offers financing solutions for equipment vendors and their end users; and investment, trust, and wealth management services that include fiduciary and executor services, financial planning solutions, investment advisory services, and private banking services for foundations and endowments, and high net worth individuals. It operates through 43 branch locations in the Chicago metropolitan area and one branch in Brookfield, Wisconsin. The company was formerly known as Metropolitan Bank Group, Inc. and changed its name to Byline Bancorp, Inc. in 2015. Byline Bancorp, Inc. was founded in 1914 and is headquartered in Chicago, Illinois.

How the Company Makes MoneyByline Bancorp generates revenue primarily through interest income from its loan portfolio, which includes commercial loans, commercial real estate loans, and consumer loans. The bank earns money by charging interest on the funds it lends to businesses and individuals. Additionally, Byline Bancorp derives revenue from non-interest income sources such as fees generated from deposit accounts, treasury management services, and transaction processing. The company also benefits from strategic partnerships with financial service providers to offer a broader range of products and services to its clients. Factors such as economic conditions, interest rate environments, and regulatory changes can significantly impact the company's earnings.

Byline Bancorp Financial Statement Overview

Summary

Byline Bancorp exhibits a solid financial performance with revenue growth and improved profitability margins. The balance sheet reflects improved leverage management, and cash flows are robust, though there's some volatility in financing activities.

Income Statement

Positive

Byline Bancorp has demonstrated consistent revenue growth over recent years, reaching a total revenue of $534.3 million in 2023 from $263.1 million in 2019. The net profit margin improved to 20.20% in 2023, indicating enhanced profitability. However, the absence of EBITDA data in 2023 limits the full analysis of operational efficiency.

Balance Sheet

Positive

The company's balance sheet reflects a solid equity base with a Debt-to-Equity ratio reducing to 0.52 in 2023 from higher levels in previous years, showcasing improved leverage management. The equity ratio increased to 11.15% in 2023, indicating a stable capital structure, though it remains relatively low compared to industry norms.

Cash Flow

Positive

Byline Bancorp's cash flow statement shows robust operating cash flows, growing significantly to $166.1 million in 2023. The Free Cash Flow to Net Income ratio indicates strong cash generation relative to earnings. However, fluctuations in financing cash flows suggest potential volatility in financial strategies.

Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Breakdown
Income Statement		Total Revenue
14.46K	534.27M	320.23M	303.61M	269.26M
	Gross Profit
14.46K	353.28M	320.23M	303.61M	269.26M
	EBIT
-383.99M	145.68M	148.53M	124.21M	51.67M
	EBITDA
0.00	0.00	118.97M	130.20M	58.15M
	Net Income Common Stockholders
120.76M	107.88M	87.95M	92.78M	37.47M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
346.78M	226.14M	1.35B	1.61B	1.53B
	Total Assets
9.50B	8.88B	7.36B	6.70B	6.39B
	Total Debt
742.55M	513.17M	751.43M	630.15M	757.69M
	Net Debt
179.41M	287.03M	572.08M	472.21M	674.27M
	Total Liabilities
8.41B	7.89B	6.60B	5.86B	5.59B
	Stockholders Equity
1.04B	990.15M	765.82M	836.38M	805.46M
Cash Flow		Free Cash Flow
26.94M	162.21M	216.70M	72.19M	105.11M
	Operating Cash Flow
26.94M	166.07M	220.33M	74.43M	109.02M
	Investing Cash Flow
-330.92M	-336.24M	-819.86M	-236.05M	-886.36M
	Financing Cash Flow
492.76M	216.96M	620.95M	236.13M	780.01M

Byline Bancorp Technical Analysis

Technical Analysis Sentiment

Neutral

Last Price25.66

Price Trends

50DMA

26.54

Negative

100DMA

27.98

Negative

200DMA

27.55

Negative

Market Momentum

MACD

-0.49

Negative

RSI

53.54

Neutral

STOCH

88.18

Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For BY, the sentiment is Neutral. The current price of 25.66 is above the 20-day moving average (MA) of 24.80, below the 50-day MA of 26.54, and below the 200-day MA of 27.55, indicating a neutral trend. The MACD of -0.49 indicates Negative momentum. The RSI at 53.54 is Neutral, neither overbought nor oversold. The STOCH value of 88.18 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for BY.

Byline Bancorp Risk Analysis

Byline Bancorp disclosed 34 risk factors in its most recent earnings report. Byline Bancorp reported the most risks in the “Finance & Corporate” category.

Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy

Latest Risks Added 0 New Risks

Byline Bancorp Peers Comparison

Overall Rating

UnderperformOutperform

Sector (63)

Financial Indicators

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
RBCAA	74 Outperform	$1.15B	12.77	10.64%	2.50%	18.29%	13.31%
BY	71 Outperform	$1.12B	9.10	11.60%	1.48%	16.41%	3.09%
QCRH	70 Outperform	$1.15B	10.13	11.70%	0.35%	9.56%	-0.32%
LOB	68 Neutral	$1.20B	20.31	6.10%	0.48%	12.30%	-41.81%
DCOM	66 Neutral	$1.13B	46.93	2.47%	3.87%	-2.81%	-64.23%
Sector *	63 Neutral	$12.33B	9.59	8.02%	79.26%	12.87%	-4.61%
BHLB	61 Neutral	$1.07B	16.23	9.69%	3.01%	4.29%	-9.78%

* Financial Sector Average

Performance Comparison

Byline Bancorp

25.66

4.88

23.48%

BHLB

Berkshire Hills

25.08

3.57

16.60%

DCOM

Dime Community Bancshares

26.02

8.14

45.53%

QCRH

QCR Holdings

65.12

7.77

13.55%

RBCAA

Republic Bancorp

67.63

18.90

38.79%

LOB

Live Oak Bancshares

26.41

-7.76

-22.71%

Byline Bancorp Earnings Call Summary

Earnings Call Date: Apr 24, 2025 | % Change Since: 0.00% | Next Earnings Date: Jul 24, 2025

Earnings Call Sentiment Positive

The earnings call reflects a strong overall performance for Byline Bancorp in 2024, with robust profitability and a solid capital position. However, loan and deposit growth were flat, and there were increases in payoff activity and operating expenses. Despite these challenges, the company managed to improve its net interest margin and increase its dividend, contributing to a generally positive outlook.

Highlights

Record Profitability for Full Year 2024

Byline Bancorp reported net income of $121 million for the year, or $2.75 per diluted share, with revenue up 5% year-on-year to $407 million. Pretax pre-provision ROA was 205 basis points, ROA was 131 basis points, and ROTCE was just under 15%.

Strong Capital Position

Tangible book value per share increased by 12% year-on-year. Capital levels remained strong with TCE at 9.61%, CET1 just under 12%, and total capital at roughly 15%.

Dividend Increase

The company approved an 11.1% increase in its quarterly dividend.

Net Interest Margin Improvement

Net interest margin increased to 4.01%, up 13 basis points from the prior quarter.

Noninterest Income Growth

Noninterest income totaled $16.1 million, up 12.3% from the previous quarter, driven by a 21% increase in gain on sale of loans.

Lowlights

Flat Loan and Deposit Growth

Loans and deposits remained flat at $6.9 billion and $7.5 billion respectively as of quarter end.

Increased Payoff Activity

Payoff activity increased to $288 million, which was higher than anticipated.

Higher Operating Expenses

Expenses increased to $57.4 million due to higher incentive accruals, with the efficiency ratio rising to 53.6%.

Moderate Asset Quality

Overall credit costs came in at $6.9 million, slightly lower than last quarter. Net charge-offs were $7.8 million, and the allowance ended the quarter at 1.42% of total loans.

Company Guidance

During the Byline Bancorp Fourth Quarter 2024 Earnings Call, the executive team provided comprehensive guidance and insights into the company's performance and outlook. They highlighted a solid year with net income reaching $121 million, or $2.75 per diluted share, on revenues of $407 million, marking a 5% increase year-on-year. The company maintained strong profitability metrics, including a pre-tax pre-provision ROA of 205 basis points and an ROA of 131 basis points. The full-year loan growth was reported at 3%, funded by a 4% increase in deposits. Additionally, the company achieved positive operating leverage, reducing the cost-to-asset ratio by 22 basis points to 238 basis points. Capital levels remained robust, with TCE at 9.61%, CET1 just under 12%, and total capital around 15%. For the fourth quarter, Byline reported net income of $30.3 million or $0.69 per diluted share, with a net interest margin increase to 4.01% and a decrease in deposit costs by 28 basis points. They plan for mid-single-digit loan growth in 2025, maintaining disciplined expense management with a quarterly noninterest expense forecast of $55 million to $57 million.

Byline Bancorp Corporate Events

M&A TransactionsBusiness Operations and Strategy

Byline Bancorp Completes Merger with First Security Bancorp

Positive

Apr 1, 2025

On April 1, 2025, Byline Bancorp, Inc. completed its merger with First Security Bancorp, Inc. and its subsidiary, First Security Trust and Savings Bank. This merger, which was effective on the same date, increased Byline’s total assets to approximately $9.8 billion as of December 31, 2024. The merger agreement stipulated that each share of First Security Bancorp’s common stock was converted into 2.3539 shares of Byline common stock, with the total merger consideration valued at approximately $41.5 million. This strategic move is expected to strengthen Byline’s position as a leading commercial bank in Chicago by combining two strong, community-focused franchises, thereby enhancing its service offerings and market presence.

Glossary

OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.

NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.

UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.