Bullish indicating open at $55-$60, IPO prices at $37
CHICAGO - Byline Bancorp, Inc. (NYSE: NYSE:BY), the parent company of Byline Bank, has announced the approval of a new stock repurchase program by its Board of Directors. The program authorizes the repurchase of up to 1.25 million shares, which is approximately 2.8% of the company's currently outstanding common stock. The repurchase plan is set to commence on January 1, 2025, and will remain active until the end of that year. The announcement comes as the company's stock has shown remarkable strength, with a 41% gain over the past six months according to InvestingPro data.
The company's Executive Chairman and CEO, Roberto R. Herencia, expressed that the new buyback program reflects Byline's disciplined capital management and its dedication to generating value for its shareholders. The repurchase of shares will be conducted based on market conditions and could take place in open market transactions or through privately negotiated deals. This may include using a Rule 10b5-1 plan, which allows companies to buy back shares at predetermined times to avoid accusations of insider trading. InvestingPro analysis indicates the company maintains a healthy dividend yield of 1.15% and trades at a modest P/E ratio of 11.3x, suggesting a balanced approach to shareholder returns.
However, Byline Bancorp has clarified that there is no obligation to repurchase any specific number of shares, and the program can be suspended at any time at the company's discretion. Factors such as stock market price, general market conditions, and legal requirements will influence the timing and volume of share repurchases.
Byline Bancorp, with headquarters in Chicago, serves small- to medium-sized businesses, financial sponsors, and consumers through Byline Bank. With assets around $9.4 billion, Byline Bank operates 46 branches in the Chicago and Milwaukee metropolitan areas, providing a variety of commercial and retail banking services. It is also recognized as a leading Small Business Administration lender in the United States. According to InvestingPro research, which offers comprehensive analysis of over 1,400 US stocks, the company has demonstrated strong financial health with positive earnings and robust returns, making it an interesting prospect for value-focused investors.
The information in this article is based on a press release statement from Byline Bancorp, Inc. and includes forward-looking statements that involve risks and uncertainties. These statements are not guarantees of future performance, and actual results could differ materially. The company has identified risk factors that could affect future results in its annual report and other filings with the Securities and Exchange Commission.
In other recent news, Byline Bancorp reported steady results for Q3 2024, with a net income of $30.3 million, or $0.69 per diluted share. The company also announced a merger with First Security Bancorp, expected to be finalized in the first half of 2025. This merger is part of Byline Bancorp's growth strategy, with the company anticipating crossing the $10 billion asset threshold by late 2025 or early 2026.
Analysts noted that Byline Bancorp's net interest income rose to $87.5 million, with a net interest margin of 3.88%. Total (EPA:TTEF) loans remained steady at $6.9 billion, while total deposits saw an 8.2% increase to $7.5 billion. However, non-interest expense is projected to rise in Q4 due to digital banking investments.
The company maintains a strong capital position, with CET1 and total capital ratios at 11.35% and 14.4%, respectively. Despite some challenges such as an increase in provision expenses to $7.5 million, Byline Bancorp is optimistic about growth opportunities in the Chicago market and is preparing for potential smaller acquisitions. These are among the recent developments that investors may want to keep an eye on.
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