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Byline Bancorp (BY) Rewards Shareholders With New Buyback Plan

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Byline Bancorp, Inc. (BY - Free Report) recently announced a new share-repurchase plan, under which the board of directors has approved up to 1.25 million shares. The new program will commence from Jan 1, 2021 and expire on Dec 31, 2022.

The shares authorized to be repurchased represent 3.2% of Byline Bancorp's outstanding common stock.

Byline Bancorp already has a share-repurchase program in place, which was announced this January. Nonetheless, the plan was suspended in the first quarter in order to preserve liquidity amid the business disruptions due to the coronavirus pandemic. The program authorized the repurchase of 1.25 million shares through December 2020, out of which 1.1 million shares remain available for repurchase.

Alberto J. Paracchini, Byline’s president and chief executive officer (CEO), said "Although at present we have no timeline for resuming share repurchases, this authorization is an important component of our capital planning process. We will continue to monitor the economic environment and market conditions to make prudent decisions regarding capital management."

Byline Bancorp has also been paying out regular quarterly dividends. Earlier this month, the company announced a quarterly cash dividend of 3 cents per share. The dividend will be paid out on Jan 5, 2021 to shareholders of record as of Dec 22, 2020. Considering last day’s closing price of $15.98 per share, the dividend yield currently stands at 0.75%.

Though the actual repurchasing of shares will depend on the prevailing economic situation, the company's new share-buyback plan, along with payment of regular quarterly dividends makes it an attractive choice for investors.

In the past year, shares of Byline Bancorp have depreciated 15.7% compared with the 18.4% decline of the industry it belongs to.

Currently, Byline Bancorp carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 (Strong Buy) Rank stocks here.

Other Banks Taking Similar Actions

In the past few months, several banks like BancorpSouth Bank , Home Bancorp, Inc. (HBCP - Free Report) and HarborOne Bancorp, Inc. (HONE - Free Report) have announced new share-repurchase authorizations. BancorpSouth's board of directors has approved the repurchase of about 6 million shares of the company’s common stock.  Home Bancorp’s board has also approved the repurchase of up to 444,000 shares.

Further, HarborOne Bancorp’s board has adopted a share-repurchase program, under which it has authorized a buyback of up to 2.92 million shares.

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