Byline Bancorp Reports $120.8 Million Net Income for 2024, Up 11.9%

Byline Bancorp, Inc. reported consolidated net income of $120.8 million for the year ended December 31, 2024, a 11.9% increase compared to the $107.9 million reported for the year ended December 31, 2023. This increase resulted from a $17.4 million rise in net interest income, a $4.6 million decrease in provision for credit losses, and a $2.5 million increase in non-interest income. These gains were partially offset by a $9.2 million increase in non-interest expense and a $2.5 million increase in the provision for income taxes. The company paid cash dividends of $15.8 million on common shares in 2024, up from $14.6 million in 2023.

The increase in net interest income was primarily driven by higher interest and dividend income due to loan and lease portfolio growth, although this was partially offset by increased deposit interest expense resulting from deposit base expansion. The decrease in the provision for credit losses stemmed from lower non-performing loans and leases and the absence of a day-one provision expense in 2024, unlike 2023 which included such an expense due to the Inland Bancorp acquisition. The rise in non-interest income was attributed to increased swap fee activity and higher net gains on loan sales due to increased premiums, partially offset by lower net loan servicing income.

Non-interest expense increased due to higher salaries and employee benefits, although this was partially offset by lower data processing expenses. The rise in the provision for income taxes was a consequence of the increase in net income before taxes. As of December 31, 2024, Byline Bancorp had consolidated total assets of $9.5 billion, total gross loans and leases outstanding of $6.9 billion, total deposits of $7.5 billion, and total stockholders’ equity of $1.1 billion. The company's strategic plan includes exploring expansion opportunities through organic growth and acquisitions.

Byline Bancorp completed the acquisition of Inland Bancorp, Inc. on July 1, 2023, and announced a proposed acquisition of First Security Bancorp, Inc. on September 30, 2024, expected to close in the first half of 2025. The company's branch network decreased from 88 to 46 since its 2013 recapitalization, with 23 branches added through acquisitions and two branches consolidated during 2024. Byline Bancorp employs 1,027 people, primarily in the Chicagoland and greater Milwaukee areas. The company's 2024 employee engagement survey showed year-over-year improvements in employee engagement and satisfaction.

The company identified several key risk factors, including credit and interest rate risks, funding risks, operational risks, and external risks related to market and economic conditions, particularly in the Chicago metropolitan area. Other risks include technology risks, risks associated with government-guaranteed loans, legal, accounting, and compliance risks, and risks related to acquisition activity. The company also discussed its regulatory environment, including capital requirements, liquidity regulations, and consumer financial protection laws. The company's outlook includes leveraging its management team, market position, and employee base to drive future growth.