Byline Bancorp (NYSE: NYSE:BY), on Tuesday, saw its price target increased by Stephens to $29.00, up from the previous $27.00, while the firm maintained an Equal Weight rating on the stock.
The adjustment follows Byline Bancorp's second-quarter performance, which surpassed expectations with its operating pre-tax, pre-provision net revenue (PPNR) beating consensus estimates by 4.7%. The company reported operating earnings per share (EPS) of $0.68, which was higher than the consensus estimate of $0.63.
The positive results were attributed to several factors, including a better-than-expected net interest margin (NIM), a lower loan loss provision, and rigorous control over expenses. Byline Bancorp's strategic moves in the market were also highlighted, with the company securing $130 million in commercial production in the last quarter. Additionally, the cost of interest-bearing deposits saw a modest increase of 7 basis points quarter-over-quarter in the second quarter of 2024, compared to a 12 basis points increase in the previous quarter.
Stephens has revised its full-year 2024 net charge-offs (NCOs) outlook to 45 basis points, up from the initial forecast, in response to the second-quarter NCOs, which came in at 56 basis points versus their forecast of 37 basis points. Byline Bancorp, with assets totaling $9.6 billion and a proven record of successful acquisitions, is expected to continue evaluating potential merger and acquisition partners with prudence.
Byline Bancorp reported a second-quarter net income of $29.7 million, or $0.68 per diluted share, demonstrating a strong capital position. The bank's pretax pre-provision net income stood at $46.2 million, with robust loan growth of $103 million, despite deposits remaining flat at $7.3 billion. However, a decrease in non-interest income by $2.6 million was observed, primarily due to fair value adjustments, and net charge-offs increased to $9.5 million.
InvestingPro Insights
Amid the recent financial analysis and price target increase for Byline Bancorp (NYSE: BY), real-time data and InvestingPro Tips provide additional context for investors considering the company's prospects. Byline Bancorp boasts a solid market capitalization of $1.25 billion, demonstrating its substantial presence in the financial sector. The company's P/E ratio, standing at 10.48, offers an insight into its valuation, which, although trading at a high P/E ratio relative to near-term earnings growth, indicates that investors are willing to pay a premium for its earnings potential.
InvestingPro Tips suggest that Byline Bancorp has seen a strong return over the last month, with a 19.12% increase, and an even more impressive return over the last three months, at 31.01%. This performance is a testament to the company's resilience and growth potential. Furthermore, analysts have revised their earnings upwards for the upcoming period, signaling confidence in the company's ability to increase profitability. It's also noted that Byline Bancorp has been profitable over the last twelve months, which is a reassuring sign for investors looking for stable returns.
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