Byline Bancorp(US:BY)2025-05-02 20:08Financial Performance - Consolidated net income for the three months ended March 31, 2025, was $28.2 million, a decrease of $2.2 million compared to $30.4 million for the same period in 2024[187]. - Basic earnings per common share decreased to $0.65 for Q1 2025 from $0.70 in Q1 2024, while diluted earnings per common share also fell to $0.64 from $0.70[210]. - Reported net income for Q1 2025 was $28,248, down from $30,440 in Q1 2024, reflecting a decrease of approximately 7.2%[319]. - Adjusted net income for Q1 2025 was $28,751, compared to $30,582 in Q1 2024, indicating a decline of about 6.0%[319]. - Total revenues for Q1 2025 reached $103,080, an increase from $101,014 in Q1 2024, representing a growth of approximately 2.0%[321]. Income and Expenses - Net interest income increased by $2.7 million, primarily due to lower interest expense on deposits and other borrowings[187]. - Non-interest expenses increased by $2.6 million, primarily due to a $2.3 million rise in salaries and employee benefits[187]. - Non-interest income for Q1 2025 was $14,864, down from $15,473 in Q1 2024, a decrease of about 3.9%[322]. - Total non-interest expense increased by $2.6 million, or 4.9%, to $56.4 million for the three months ended March 31, 2025, primarily due to higher salaries and employee benefits[234]. Asset and Liability Management - Total assets as of March 31, 2025, were $9.6 billion, with total gross loans and leases outstanding at $7.0 billion and total deposits at $7.6 billion[190]. - Total liabilities increased by $48.6 million, or 0.6%, to $8.5 billion at March 31, 2025, with total deposits rising by $94.7 million, or 1.3%[245]. - Securities available-for-sale increased by $122.4 million, or 8.6%, from $1.4 billion at December 31, 2024, to $1.5 billion at March 31, 2025[247]. Credit Quality - The provision for credit losses increased by $2.5 million, attributed to growth in the loan and lease portfolio and a larger allowance for government guaranteed loans[187]. - Non-performing loans and leases to total loans and leases decreased to 0.76% from 1.00% year-over-year, indicating improved asset quality[210]. - Total non-performing loans and leases were $53.6 million at March 31, 2025, down from $62.1 million at December 31, 2024, representing a reduction of approximately 13.5%[277]. - The allowance for credit losses on loans and leases was 187.28% of non-performing loans and leases as of March 31, 2025, compared to 157.85% at December 31, 2024[277]. Capital and Liquidity - Stockholders' equity increased by $39.6 million or 3.6% to $1.1 billion as of March 31, 2025, primarily due to retained earnings from net income[298]. - Byline Bank exceeded all applicable regulatory capital requirements and was considered "well-capitalized" as of March 31, 2025[301]. - The Company expects cash and liquidity resources to be sufficient to meet liquidity and capital requirements for at least the next twelve months[297]. - The Company had $550.0 million of FHLB advances outstanding with maturities ranging from April 2025 to June 2025[284]. Loan Portfolio - Total loans and leases increased to $7.0 billion as of March 31, 2025, up by $119.0 million or 1.7% from $6.9 billion at December 31, 2024[254]. - Commercial real estate loans totaled $2.4 billion, representing 33.8% of the total loan and lease portfolio as of March 31, 2025, stable compared to 34.1% at December 31, 2024[257]. - The loan portfolio included $431.7 million of unguaranteed 7(a) SBA and USDA loans, with the top three industries being retail trade (19.9%), accommodation and food services (13.6%), and manufacturing (9.3%) as of March 31, 2025[255]. Interest Rate Risk Management - The company evaluates interest rate risk using net interest income (NII) simulations and economic value of equity (EVE) simulations, which provide estimates based on various assumptions[330]. - The company manages interest rate risk by adjusting the interest rates and tenors associated with its borrowings and investment portfolios[327]. - In a +300 basis point change in interest rates, net interest income is estimated to increase by 8.4% for the year ending March 31, 2026, while the economic value of equity (EVE) is projected to decrease by 15.5%[334].