Byline Bancorp, Inc. (NYSE: BY) has approved a new share‑repurchase program that authorizes the purchase of up to 2.25 million common shares—about 4.9 % of the company’s outstanding equity—through December 31, 2026. The program, effective January 1, 2026, gives the board flexibility to buy shares in the open market or through private transactions as conditions warrant.
The move signals Byline’s confidence in its capital position and its intent to return excess cash to shareholders while preserving the liquidity needed to fund growth initiatives. The bank’s balance sheet already shows a strong net margin of 29.34 % and a debt‑to‑equity ratio of 0.44, underscoring the financial flexibility that underpins the buyback.
Byline’s previous repurchase program, approved in December 2020, authorized up to 1.25 million shares for the 2021‑2022 period. The new program roughly doubles the share‑buyback volume, reflecting the bank’s expectation of crossing the $10 billion asset threshold in Q1 2026 and the associated regulatory implications.
Management highlighted that the program is part of a disciplined capital‑management strategy. Executive Chairman and CEO Roberto R. Herencia said the buyback “reflects our confidence in the company’s capital position and our ability to support the long‑term growth trajectory of the Byline franchise.” He added that the bank views its stock as a compelling investment opportunity and that the program underscores a thoughtful approach to capital allocation.
The announcement comes amid a broader context of modest valuation metrics. Byline’s price‑to‑earnings ratio of 10.74 and a median analyst target price of $30.29 suggest the stock may be undervalued relative to its earnings potential. The buyback is expected to reduce the share count, potentially boosting earnings per share and supporting the bank’s long‑term shareholder value.
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