Byline Bancorp (BY) Q4 2024 earnings summary

Executive summary

• Full year 2024 net income reached $120.8 million ($2.75 per diluted share), with record profitability and strong fourth quarter results; revenue was $406.9 million, up 5.2% year-over-year.

• Tangible book value per share increased 11.7% to $20.09, and the quarterly dividend was raised by 11.1% to $0.10 per share.

• Maintained steady asset quality, top quartile performance, and capitalized on market disruption to attract talent and execute acquisitions.

• Total assets grew to $9.5 billion, up 6.9% from the prior year.

• Pending acquisition of First Security Bancorp, Inc. aligns with ongoing M&A strategy and is expected to close in early Q2 2025.

Financial highlights

• Q4 net income was $30.3 million ($0.69 per diluted share) on $105 million revenue; net interest income for Q4 was $88.5 million, up 1.2% sequentially, with net interest margin at 4.01%.

• Non-interest income for Q4 was $16.1 million, up 12.3% sequentially, driven by higher gain on sale of loans.

• Non-interest expense for Q4 was $57.4 million, up 5.7% from Q3, mainly due to higher compensation and advertising.

• Full-year loan growth was 3.1% and deposit growth was 3.9% year-over-year; loans and deposits ended the quarter at $6.9 billion and $7.5 billion, respectively.

• Efficiency ratio for Q4 was 53.6%; full year efficiency ratio was 52.45%.

Outlook and guidance

• Expect mid-single-digit loan growth in 2025, with strong pipelines and continued focus on commercial and leasing businesses.

• Net interest income projected at $86–$88 million for Q1 2025, assuming a 50 bps Fed funds rate decline.

• Non-interest expense guidance for 2025 is $55–$57 million per quarter, standalone (excluding First Security acquisition).

• Projected acquisition accounting accretion for 2025 is $1.4–$1.6 million per quarter.

• Strategic priorities include completing the First Security acquisition, preparing for the $10 billion asset threshold, and maintaining fortress-level capital ratios.