Byline Bancorp, Inc. Receives Credit Ratings Upgrade by KBRA
Byline Bancorp (NYSE: BY) has received significant credit rating upgrades from Kroll Bond Rating Agency (KBRA). The agency upgraded Byline's senior unsecured debt rating to BBB+ from BBB, subordinated debt to BBB from BBB-, and short-term debt to K2 from K3. Byline Bank also saw improvements with deposit and senior unsecured debt ratings rising to A- from BBB+ and subordinated debt to BBB+ from BBB.
KBRA's decision is based on Byline's strong and resilient earnings capacity across various interest rate environments, demonstrating top quartile profitability within KBRA-rated institutions. The company's government lending team provides revenue support during declining rate environments, while management has proactively adjusted the balance sheet toward a more neutral position to prepare for potential Fed rate cuts.
The ratings reflect Byline's solid strategic execution, successful acquisition integration history, and strong management team. Notable is the approximately 30% insider ownership, which KBRA views as a credit strength. The company has also made proactive investments in infrastructure, risk systems, and talent in preparation for crossing the $10 billion asset threshold.
Byline Bancorp (NYSE: BY) ha ricevuto importanti upgrade del rating creditizio dalla Kroll Bond Rating Agency (KBRA). L'agenzia ha aggiornato il rating del debito senior non garantito di Byline a BBB+ da BBB, il debito subordinato a BBB da BBB- e il debito a breve termine a K2 da K3. Anche Byline Bank ha visto miglioramenti, con i rating dei depositi e del debito senior non garantito che sono saliti a A- da BBB+ e il debito subordinato a BBB+ da BBB.
La decisione di KBRA si basa sulla forte e resiliente capacità di guadagno di Byline in vari contesti di tasso d'interesse, dimostrando una redditività di primo quartile tra le istituzioni valutate da KBRA. Il team di prestiti governativi dell'azienda fornisce supporto ai ricavi durante i periodi di riduzione dei tassi, mentre la direzione ha proattivamente adattato il bilancio verso una posizione più neutra per prepararsi a potenziali tagli dei tassi da parte della Fed.
I rating riflettono la solida esecuzione strategica di Byline, la storia di integrazione di acquisizioni di successo e un forte team di gestione. Notevole è la proprietà interna di circa 30%, che KBRA considera una forza creditizia. L'azienda ha anche effettuato investimenti proattivi in infrastrutture, sistemi di rischio e talenti in preparazione per superare la soglia dei 10 miliardi di dollari di attivi.
Byline Bancorp (NYSE: BY) ha recibido importantes mejoras en su calificación crediticia por parte de Kroll Bond Rating Agency (KBRA). La agencia mejoró la calificación de la deuda senior no garantizada de Byline a BBB+ desde BBB, la deuda subordinada a BBB desde BBB- y la deuda a corto plazo a K2 desde K3. Byline Bank también vio mejoras, con las calificaciones de depósitos y de deuda senior no garantizada aumentando a A- desde BBB+ y la deuda subordinada a BBB+ desde BBB.
La decisión de KBRA se basa en la fuerte y resiliente capacidad de ganancias de Byline en diversos entornos de tasas de interés, demostrando una rentabilidad de primer cuartil entre las instituciones calificadas por KBRA. El equipo de préstamos gubernamentales de la compañía proporciona apoyo de ingresos durante los entornos de reducción de tasas, mientras que la dirección ha ajustado proactivamente el balance hacia una posición más neutral para prepararse para posibles recortes de tasas por parte de la Fed.
Las calificaciones reflejan la sólida ejecución estratégica de Byline, su exitosa historia de integración de adquisiciones y un fuerte equipo de gestión. Notable es la propiedad interna de aproximadamente 30%, que KBRA considera una fortaleza crediticia. La empresa también ha realizado inversiones proactivas en infraestructura, sistemas de riesgo y talento en preparación para superar el umbral de activos de 10 mil millones de dólares.
Byline Bancorp (NYSE: BY)는 Kroll Bond Rating Agency (KBRA)로부터 중요한 신용 등급 상향 조정을 받았습니다. 이 기관은 Byline의 선순위 무담보 채무 등급을 BBB+에서 BBB로, 후순위 채무를 BBB에서 BBB-로, 단기 채무를 K2에서 K3로 상향 조정했습니다. Byline Bank 또한 예금 및 선순위 무담보 채무 등급이 BBB+에서 A-로, 후순위 채무는 BBB에서 BBB+로 상승하는 개선을 보였습니다.
KBRA의 결정은 Byline의 강력하고 회복력 있는 수익 능력을 바탕으로 하며, 다양한 금리 환경에서 KBRA 등급 기관 중 상위 25%의 수익성을 보여줍니다. 회사의 정부 대출 팀은 금리가 하락하는 환경에서 수익 지원을 제공하며, 경영진은 잠재적인 연준 금리 인하에 대비하여 재무 상태를 보다 중립적인 위치로 조정했습니다.
이 등급은 Byline의 탄탄한 전략적 실행, 성공적인 인수 통합 역사 및 강력한 경영진을 반영합니다. 특히 약 30%의 내부 소유권은 KBRA가 신용 강점으로 간주하는 사항입니다. 회사는 또한 100억 달러 자산 기준을 초과하기 위해 인프라, 위험 시스템 및 인재에 대한 선제적 투자를 진행했습니다.
Byline Bancorp (NYSE: BY) a reçu des améliorations significatives de sa note de crédit de la part de Kroll Bond Rating Agency (KBRA). L'agence a rehaussé la note de la dette senior non garantie de Byline à BBB+ depuis BBB, la dette subordonnée à BBB depuis BBB- et la dette à court terme à K2 depuis K3. Byline Bank a également connu des améliorations, avec les notations des dépôts et de la dette senior non garantie passant à A- depuis BBB+ et la dette subordonnée à BBB+ depuis BBB.
La décision de KBRA repose sur la forte et résiliente capacité de bénéfice de Byline dans divers environnements de taux d'intérêt, démontrant une rentabilité de premier quartile parmi les institutions notées par KBRA. L'équipe de prêts gouvernementaux de l'entreprise soutient les revenus pendant les périodes de baisse des taux, tandis que la direction a proactivement ajusté le bilan vers une position plus neutre pour se préparer à de potentielles baisses de taux de la Fed.
Les notations reflètent l'exécution stratégique solide de Byline, son histoire d'intégration réussie d'acquisitions et une équipe de direction forte. À noter, la propriété interne d'environ 30%, que KBRA considère comme une force de crédit. L'entreprise a également réalisé des investissements proactifs dans l'infrastructure, les systèmes de risque et les talents en préparation pour franchir le seuil des 10 milliards de dollars d'actifs.
Byline Bancorp (NYSE: BY) hat bedeutende Herabstufungen der Kreditwürdigkeit von der Kroll Bond Rating Agency (KBRA) erhalten. Die Agentur hat die Bewertung der vorrangigen unbesicherten Schulden von Byline auf BBB+ von BBB, die nachrangigen Schulden auf BBB von BBB- und die kurzfristigen Schulden auf K2 von K3 angehoben. Auch Byline Bank verzeichnete Verbesserungen, da die Bewertungen für Einlagen und vorrangige unbesicherte Schulden auf A- von BBB+ und nachrangige Schulden auf BBB+ von BBB gestiegen sind.
Die Entscheidung von KBRA basiert auf der starken und widerstandsfähigen Ertragskraft von Byline in verschiedenen Zinsumgebungen, die eine Rentabilität im obersten Quartil unter den von KBRA bewerteten Institutionen demonstriert. Das staatliche Kreditteam des Unternehmens bietet in Zeiten sinkender Zinsen Unterstützung für die Einnahmen, während das Management proaktiv die Bilanz auf eine neutralere Position angepasst hat, um sich auf mögliche Zinssenkungen der Fed vorzubereiten.
Die Bewertungen spiegeln die solide strategische Umsetzung, die erfolgreiche Integration von Akquisitionen und das starke Managementteam von Byline wider. Bemerkenswert ist der etwa 30% Insiderbesitz, den KBRA als Kreditstärke ansieht. Das Unternehmen hat auch proaktive Investitionen in Infrastruktur, Risikosysteme und Talente getätigt, um sich auf das Überschreiten der 10 Milliarden Dollar Vermögensgrenze vorzubereiten.
- Credit ratings upgrade across multiple debt categories
- Top quartile profitability among KBRA-rated institutions
- Strong earnings resilience across various interest rate environments
- 30% insider ownership strengthening corporate governance
- Proven track record of successful acquisition integration
- Proactive balance sheet management for different rate environments
- None.
Insights
KBRA's comprehensive upgrade of Byline Bancorp's credit ratings represents a significant vote of confidence in the bank's financial fundamentals and operational strategy. The upgrade from BBB to BBB+ for senior unsecured debt, coupled with corresponding improvements across all debt categories, will materially reduce Byline's borrowing costs and enhance its access to capital markets.
The rating agency's explicit recognition of Byline's top quartile profitability within KBRA's rated universe is particularly noteworthy. This performance isn't merely a product of favorable interest rate conditions – KBRA specifically highlighted the bank's countercyclical elements, notably its government lending operation that thrives during rate decline cycles.
What truly distinguishes this upgrade is KBRA's acknowledgment of management's proactive balance sheet positioning toward interest rate neutrality, preparing for anticipated Fed rate cuts. This strategic foresight, combined with the 30% insider ownership stake, creates strong alignment between management and shareholder interests.
The timing is especially advantageous as Byline approaches the critical $10 billion asset threshold, which triggers additional regulatory requirements. KBRA's positive assessment of Byline's infrastructure investments and talent acquisition suggests the bank is well-positioned to navigate this regulatory transition without disrupting its performance trajectory.
KBRA upgraded Byline Bancorp, Inc. senior unsecured debt rating to BBB+ from BBB, upgraded the subordinated debt rating to BBB from BBB-, and upgraded the short-term debt rating to K2 from K3.
In addition, KBRA upgraded Byline Bank deposit and senior unsecured debt ratings to A- from BBB+ and upgraded the subordinated debt rating to BBB+ from BBB. Moreover, KBRA affirms the short-term deposit and debt ratings of K2 for the bank.
The Outlook for all long-term ratings is revised to Stable from Positive following the upgrade.
According to KBRA report, the rating upgrade is supported by Byline’s strong and resilient earnings capacity across various interest rate environments, including the current cycle, where it has demonstrated top quartile profitability within the KBRA-rated universe. While the asset-sensitive balance sheet has contributed to its favorable performance during the more elevated interest rate environment, KBRA believes Byline’s business model also incorporates countercyclical elements. Specifically, its government lending team, which provides substantial revenue tailwinds in a declining rate environment, driving increased gain-on-sale activity, as evidenced in 2021. Additionally, management has proactively shifted the balance sheet toward a more neutral IRR position to mitigate the impact of further Fed rate cuts. Given these factors, KBRA believes Byline’s earnings should remain durable and continue to rank at the higher end of the rating group moving forward. The ratings also reflect Byline’s solid strategic execution over the years, including a proven track record of integrating acquisitions and driving organic growth. This is supported by a strong management team and board of directors, with approximately
“We are pleased to receive the rating upgrades from KBRA, demonstrating the financial strength of Byline,” said Thomas J. Bell III, Executive Vice President, Chief Financial Officer & Treasurer of Byline Bancorp, Inc. “Their rating reinforces our sound risk management practices, strong financial performance, and confirms our commitment to maintaining a well-diversified credit profile which positions us as a reliable partner for our valued customers and investors."
The complete KBRA press release on Byline is available on KBRA’s website, www.kbra.com. The KBRA press release, credit ratings, and analysis constitute part of the information contained therein are, and must be construed solely as, statements of opinion of KBRA and not statements of fact or recommendations of KBRA or the Company to purchase, sell or hold any of the Company’s securities.
About Byline Bancorp, Inc.
Headquartered in
View source version on businesswire.com: https://www.businesswire.com/news/home/20250320011371/en/
Investors / Media:
Brooks O. Rennie
Head of Investor Relations
(312) 660-5805
brennie@bylinebank.com
Source: Byline Bancorp, Inc.
FAQ
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