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Byline (BY) Rewards Shareholders With New Repurchase Plan

Byline Bancorp, Inc. BY announced a new share repurchase plan. The company’s board of directors has authorized the repurchase of up to 1.25 million shares. The program will commence on Jan 1, 2024, and expire on Dec 31, 2024.

The repurchase authorization represents 2.9% of Byline’s outstanding common stock.

Roberto R. Herencia, the executive chairman and CEO of BY, stated, “The new share buyback authorization, which we believe is consistent with our disciplined approach, demonstrates our continued commitment to using this tool as part of our capital management strategy.”

The company has been rewarding shareholders through efficient capital distribution activities, including share repurchases and dividend payments.

On Dec 12, 2022, BY's board of directors approved a share repurchase program authorizing the company to buy back up to 1.25 million shares, starting Jan 1, 2023, until Dec 31, 2023.

Since the company did not repurchase any shares under the plan during the nine months ended Sep 30, 2023, the entire authorization remained available for repurchase at the end of the third quarter of 2023.

Also, the company has been paying regular quarterly dividends. A cash dividend of 9 cents per share was paid out on Nov 21, 2023, to stockholders of record as of Nov 7, 2023.

BY has a payout ratio of 13% and announced two dividend hikes in the last five years.

The company's new share buyback plan, along with the payment of regular quarterly dividends, makes it an attractive choice for investors. Through efficient capital distributions, BY is expected to continue to enhance shareholder value.

Over the past six months, shares of Byline have gained 11.2% compared with 6.3% growth of the industry it belongs to.

 

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Zacks Investment Research


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Currently, Byline carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 (Strong Buy) Rank stocks here.

Finance Firms Taking Similar Actions

Over the past couple of months, several companies have rewarded shareholders with new share repurchase programs.

Recently, Victory Capital Holdings, Inc. VCTR announced that its board of directors authorized the repurchase of up to $100 million of common stock through Dec 31, 2025.

David Brown, chairman and CEO of VCTR, commented, “This new repurchase authorization allows us to remain flexible and opportunistic with our capital allocation.”

VCTR has an existing share repurchase program in place. This March, the board of directors of this San Antonio, TX-based company authorized the repurchase of up to $100 million of common stock through Mar 31, 2025. As of Sep 30, 2023, $51.9 million worth of shares were left to be repurchased under this authorization.

Likewise, Raymond James RJF announced a new share buyback program. Its board authorized the repurchase of its shares of common stock, aggregating to $1.5 billion, with no expiration date. This replaces the previous buyback program of $1.5 billion announced last December. Under the previous program, around $700 million remained available for repurchase as of Nov 30, 2023.

Also, RJF's board of directors declared a quarterly cash dividend of 45 cents per share, representing an increase of 7.1% from the prior payout. The new dividend will be paid out on Jan 16, 2024, to shareholders of record as of Jan 2, 2024.

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