Byline Bancorp (BY) Q3 2024 earnings summary

Executive summary

• Net income for Q3 2024 was $30.3 million ($0.69 per diluted share), with adjusted net income of $30.7 million ($0.70 per share); revenue reached $102 million, up 2% year-over-year.

• Announced a definitive merger agreement with First Security Bancorp, adding $355 million in assets and $323 million in core deposits, expected to close in H1 2025.

• Tangible book value per share increased 24% year-over-year to $20.21.

• Board declared a $0.09 per share dividend payable November 19, 2024.

• Continued recognition for workplace excellence and franchise momentum.

Financial highlights

• Pre-tax pre-provision income was $47.5 million, with pre-tax pre-provision ROA above 2% for the eighth consecutive quarter.

• Net interest income was $87.5 million, up 1% sequentially; net interest margin was 3.88%, down 10 bps sequentially and 58 bps year-over-year.

• Non-interest income rose 12% sequentially to $14.4 million, led by equity securities, swap fees, and loan sale gains.

• Non-interest expense was $54.3 million, up 2% sequentially, but down 6.2% year-over-year.

• Efficiency ratio improved to 52.02%; adjusted efficiency ratio was 51.62%.

Outlook and guidance

• Expect Q4 net interest income between $85 million and $87 million, with stable to growing NII despite potential Fed rate cuts.

• Non-interest expense guidance for Q4 is $55–$57 million, and for 2025, $54–$57 million, both excluding the pending acquisition.

• Anticipate mid-single-digit loan growth for the remainder of 2024 and into 2025.

• Gain on sale income expected in the $5–$6 million range for Q4.

• Management expects the pending First Security Bancorp merger to strengthen market position and core deposit base.