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Dec 31, 2020
Byline Bancorp Q4 2020 Earnings Report
Byline Bancorp reported strong Q4 2020 earnings driven by loan growth, deposit inflows and expense management.
Key Takeaways
Byline Bancorp reported a net income of $12.3 million, or $0.31 per diluted share, for the fourth quarter of 2020. The results reflect an improvement in business activity, loan and lease growth excluding PPP loans, strong inflows of commercial noninterest-bearing deposits, and higher net interest income.
Net income was $12.3 million, or $0.31 per diluted share.
Adjusted net income was $15.2 million, or $0.38 per adjusted diluted share, excluding impairment charges on assets held for sale.
Net interest margin was 3.77%.
Originated loans and leases increased $31.9 million, with total production of $230.5 million.
Byline Bancorp
Byline Bancorp
Forward Guidance
Byline Bancorp is well positioned to deliver another strong year in 2021, with a building loan pipeline, a more efficient retail branch network, and enhanced efficiencies to improve their ability to serve existing customers and attract new customers.
Positive Outlook
- Loan pipeline continues to build as the banking teams added over the past two years gain traction and overall loan demand improves.
- A more efficient and productive retail branch network following recent branch consolidations.
- Effectively manage expenses and realize more operating leverage as they continue to grow their balance sheet.
- Actions taken to enhance efficiencies combined with the investments made to improve ability to serve existing customers and attract new customers to Byline will continue to result in a higher level of earnings and profitability in the years to come.
- Well positioned to increase the amount of capital that we return to shareholders through our quarterly dividend, doubling to $0.06 per share, along with the resumption on our stock repurchase program as market conditions permit.
Challenges Ahead
- The COVID-19 pandemic is adversely affecting Byline, its employees, customers, counterparties and third-party service providers, and the ultimate extent of the impacts on our business, financial position, results of operations, liquidity, and prospects is uncertain.
- Continued deterioration in general business and economic conditions, including further increases in unemployment rates, or turbulence in U.S. or global financial markets could adversely affect revenues and the values of assets and liabilities, reduce the availability of funding, lead to a tightening of credit, and further increase stock price volatility.
- Changes to statutes, regulations, or regulatory policies or practices as a result of, or in response to COVID-19, could affect Byline in substantial and unpredictable ways.
- No representations, warranties or guarantees are or will be made by Byline as to the reliability, accuracy or completeness of any forward-looking statements contained in this communication or that such forward-looking statements are or will remain based on reasonable assumptions.
- Certain risks and important factors that could affect Byline’s future results are identified in its Annual Report on Form 10-K and other reports filed with the Securities and Exchange Commission, including among other things under the heading “Risk Factors” in its Annual Report on Form 10-K for the year ended December 31, 2019, and its Quarterly Report on Form 10-Q for the quarters ended March 31, 2020 and June 30, 2020.