Byline Could Sink When Lockup Expires

December 27, 2017 concludes the 180-day lockup period on Byline Bancorp, Inc.(NYSE: BY).

When the lockup period ends for Byline Bancorp, its pre-IPO shareholders, directors, and executives will have the opportunity to sell their 22.69 million currently-restricted shares for the first time. Currently, just a small number of the total shares outstanding – approximately 5.7 million – are currently freely transferable.

The potential for a sudden increase in stock traded on the secondary market may cause a significant decline in the price of Byline Bancorp shares in the short-term.

(Source: S-1/A)

This group of pre-IPO shareholders includes three corporate entities and fourteen individuals.

(Source: S-1/A)

Currently BY trades in the $21 to $22 range, slightly higher than its IPO price of $19 and its first day closing price of $20.05 on June 30.

Business Overview: Bank Holding Company

Byline Bancorp operates as a bank holding company for Byline Bank that offers banking products and services to commercial real estate and financial sponsors, small and medium sized businesses, and consumers in the United States. It offers certificates of deposit, time deposits, money market accounts, savings accounts, non-interest bearing accounts, interest-bearing demand products, and negotiable order of withdrawal accounts. In addition, Byline Bank offer commercial loan products and services such as revolving lines of credit, term loans, construction loans, treasury management products, small business administration loans; consumer lending products such as home equity loans, mortgage loans, and other consumer loans; and small ticket equipment leasing services. Its banking services are available directly, online and through mobile devices. As of March 2017, the company had 56 branch offices in the Chicago metropolitan area and one branch office in Wisconsin. The company was formerly known as Metropolitan Bank Group, Inc. and changed its name to Byline Bancorp, Inc. in 2015. Byline Bancorp, Inc. was incorporated in 1978 and is headquartered in Chicago, Illinois.