- Byline Bancorp reported net income of $30 million or $0.66 per diluted share on revenue of $110 million for Q2 2025, including merger and secondary offering charges.
- Capital levels remained strong with TCE above 10% and CET1 just under 12%; repurchased 418,000 shares returning $10 million to shareholders.
- Credit costs were $11.9 million, including $7.7 million net charge-offs and a $4.2 million net reserve build; NPLs increased to 92 basis points from 76 basis points.
- Efficiency ratio was 48.2% adjusted, and cost-to-asset ratio improved to 228 basis points, down 18 basis points quarter-over-quarter.
- Excluding those charges, net income was $33.8 million or $0.75 per diluted share.
- Expenses were $60 million including charges; adjusted expenses were $54.7 million, a 2% decrease from prior quarter.
- Loans ended at $7.4 billion, deposits at $7.8 billion, with organic loan growth of $155 million (9%) and deposit growth of 6.4% excluding brokered deposits.
- Noninterest income declined slightly due to a negative fair value mark on servicing assets despite higher gain on sale revenue and fees.
- Pretax pre-provision income was $51 million with a pretax pre-provision ROA of 212 basis points, marking the 11th consecutive quarter above 200 basis points.
- ROA was 1.25% (1.41% adjusted) and ROTCE was just under 13% (14.4% adjusted), exceeding cost of capital despite a growing capital base.
- Total revenue increased 11% year-over-year to $110.5 million, driven by a 9% increase in net interest income due to higher balances and margin expansion of 11 basis points to 4.18%.
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- Balance sheet is strong with no secured debt maturing before 2028 and weighted average debt maturity of almost 8 years.
- Core community-based rental income increased 5.5% for the quarter and year-to-date.
- Core operating expenses were flat in the quarter, with expense growth 190 basis points lower than guidance.
- Core portfolio generated 6.4% NOI growth in the quarter, 70 basis points higher than guidance.
- Core RV and marina annual base rental income increased 3.7% in the quarter and 3.9% year-to-date.
- Membership business contributed $16 million net in the quarter and $31.4 million year-to-date.
- NOI increased 5% year-to-date compared to last year.
- Normalized per share FFO growth year-to-date is 5.7%.
- Seasonal rent decreased 5.6% and transient decreased 8.6% year-to-date.
- Second quarter normalized FFO was $0.69 per share, in line with midpoint guidance.
- Year-to-date expense growth was 70 basis points including insurance renewal impact.
Dafinchi