Core Points - Byline Bank announces its sponsorship of the Chicago Blackhawks for the 2025-26 season, coinciding with the team's 100th anniversary, highlighting the bank's commitment to the Chicagoland community [1][2] - The partnership will feature Byline Bank branding prominently displayed on rink boards, in-arena signage, and during broadcasts on Chicago Sports Network, enhancing visibility among Blackhawks fans [2] - Research indicates that the Chicago Blackhawks have a large fan base, with fans often being business owners and leaders, aligning with Byline Bank's mission to support local businesses [3] Company Overview - Byline Bank, headquartered in Chicago, is a full-service commercial bank with approximately $9.7 billion in assets and operates 45 branches in the Chicago and Milwaukee metropolitan areas [5] - The bank offers a wide range of banking products and services, including small-ticket equipment leasing solutions, and is recognized as one of the top SBA lenders in the U.S. based on volume for FY2024 [5] - Byline Bank is a member of the FDIC and an Equal Housing Lender, reinforcing its commitment to community banking [5][6]

Core Insights - Byline Bancorp's stock has appreciated over 125% in the past five years, but has shown no gains year-to-date in 2025 without dividends [1] Group 1: Stock Performance - The stock price of Byline Bancorp (NYSE: BY) has increased by more than 125% over the last five years [1] - Year-to-date in 2025, Byline Bancorp has not made any gains without the addition of dividends [1] Group 2: Market Perspective - The financial markets are considered efficient, with most stocks reflecting their real current value [1] - The best investment opportunities often arise from stocks that are less widely followed or do not accurately reflect existing market opportunities [1]

Core Points - Byline Bank has been recognized as the Illinois SBA 7(a) Lender of the Year for the 16th consecutive year, originating $119.6 million in 7(a) loans in fiscal year 2024, which created 742 new jobs statewide [3][5] - In addition to the 7(a) award, Byline Bank was also named the 504 Third-Party Lender of the Year for originating $47.5 million in SBA 504 loans and the Export Lender of the Year for providing $6.1 million to Illinois exporters [4][5] - Byline Bank ranks nationally as a top SBA 7(a) lender with total loans of $504.6 million in FY2024, and it is also a top lender in several other states [6][7] Company Overview - Byline Bank, headquartered in Chicago, is a full-service commercial bank with approximately $9.7 billion in assets and operates 45 branch locations in the Chicago and Milwaukee metropolitan areas [8] - The bank specializes in government-guaranteed lending, particularly in SBA and USDA financing, and is recognized as a National Preferred SBA 7(a) Lender [7][8]

[PART I. FINANCIAL INFORMATION](index=3&type=section&id=PART%20I.%20FINANCIAL%20INFORMATION) [Item 1. Financial Statements](index=3&type=section&id=Item%201.%20Financial%20Statements) Presents Byline Bancorp's unaudited interim condensed consolidated financial statements, including condition, operations, and cash flows, with detailed notes [Condensed Consolidated Statements of Financial Condition](index=3&type=section&id=Condensed%20Consolidated%20Statements%20of%20Financial%20Condition) Total assets reached **$9.72 billion** by June 30, 2025, up from **$9.50 billion** at year-end 2024, driven by loan growth and increased deposits Condensed Consolidated Statements of Financial Condition (unaudited) | (dollars in thousands) | June 30, 2025 (in thousands) | December 31, 2024 (in thousands) | | :--- | :--- | :--- | | **Total assets** | **$9,720,218** | **$9,496,529** | | Net loans and leases | $7,220,328 | $6,808,834 | | Securities available-for-sale, at fair value | $1,575,240 | $1,415,696 | | Cash and cash equivalents | $218,350 | $563,138 | | **Total liabilities** | **$8,527,802** | **$8,405,032** | | Total deposits | $7,810,479 | $7,458,628 | | Other borrowings | $414,110 | $618,773 | | **Total stockholders' equity** | **$1,192,416** | **$1,091,497** | | **Total liabilities and stockholders' equity** | **$9,720,218** | **$9,496,529** | [Condensed Consolidated Statements of Operations](index=5&type=section&id=Condensed%20Consolidated%20Statements%20of%20Operations) Q2 2025 net income was **$30.1 million** with **$0.66** diluted EPS, driven by higher net interest income despite increased provision for credit losses Condensed Consolidated Statements of Operations (unaudited) | (dollars in thousands, except per share data) | Three Months Ended June 30, 2025 (in thousands, except per share data) | Three Months Ended June 30, 2024 (in thousands, except per share data) | Six Months Ended June 30, 2025 (in thousands, except per share data) | Six Months Ended June 30, 2024 (in thousands, except per share data) | | :--- | :--- | :--- | :--- | :--- | | Net interest income | $95,970 | $86,526 | $184,186 | $172,067 | | Provision for credit losses | $11,923 | $6,045 | $21,102 | $12,688 | | Total non-interest income | $14,483 | $12,844 | $29,347 | $28,317 | | Total non-interest expense | $59,602 | $53,210 | $116,031 | $107,019 | | **Net income** | **$30,082** | **$29,671** | **$58,330** | **$60,111** | | **Diluted earnings per common share** | **$0.66** | **$0.68** | **$1.30** | **$1.37** | [Condensed Consolidated Statements of Cash Flows](index=9&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) Net cash provided by operating activities was **$43.3 million** for H1 2025, with significant cash used in investing and financing activities, leading to a **$344.8 million** decrease in cash Summary of Cash Flows (Six Months Ended June 30) | (dollars in thousands) | 2025 (in thousands) | 2024 (in thousands) | | :--- | :--- | :--- | | Net cash provided by operating activities | $43,326 | $102,482 | | Net cash used in investing activities | ($234,160) | ($284,202) | | Net cash provided by financing activities | ($153,954) | $686,041 | | **Net change in cash and cash equivalents** | **($344,788)** | **$504,321** | | Cash and cash equivalents, beginning of period | $563,138 | $226,136 | | **Cash and cash equivalents, end of period** | **$218,350** | **$730,457** | [Notes to Unaudited Interim Condensed Consolidated Financial Statements](index=11&type=section&id=Notes%20to%20Unaudited%20Interim%20Condensed%20Consolidated%20Financial%20Statements) Detailed notes disclose the **First Security Bancorp acquisition**, a **$1.6 billion** securities portfolio, **$7.3 billion** loan portfolio, and specifics on deposits and capital - On April 1, 2025, the Company acquired First Security Bancorp, Inc. for a total consideration of approximately **$41.5 million**, resulting in **$147,000** of goodwill. Merger-related expenses of **$5.1 million** were recognized in the six months ended June 30, 2025[33](index=33&type=chunk)[34](index=34&type=chunk)[37](index=37&type=chunk) - The total loan and lease portfolio grew to **$7.33 billion** at June 30, 2025, from **$6.91 billion** at December 31, 2024. The allowance for credit losses (ACL) increased to **$107.7 million** (**1.47%** of total loans) from **$98.0 million** (**1.42%** of total loans)[52](index=52&type=chunk)[55](index=55&type=chunk)[302](index=302&type=chunk) - Total deposits increased to **$7.81 billion** at June 30, 2025, from **$7.46 billion** at year-end 2024, primarily driven by growth in money market accounts and the First Security acquisition[105](index=105&type=chunk)[273](index=273&type=chunk) - The Company repurchased **569,599 shares** for **$13.8 million** during the first six months of 2025 under its authorized stock repurchase program. A quarterly dividend of **$0.10 per share** was declared[181](index=181&type=chunk)[185](index=185&type=chunk) [Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations](index=48&type=section&id=Item%202.%20Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management discusses Q2 2025 net income of **$30.1 million**, driven by increased net interest income and balance sheet expansion, while maintaining strong liquidity and capital Key Performance Metrics (Q2 2025 vs Q2 2024) | Metric | Q2 2025 (in millions, except percentages and per share data) | Q2 2024 (in millions, except percentages and per share data) | | :--- | :--- | :--- | | Net Income | $30.1M | $29.7M | | Diluted EPS | $0.66 | $0.68 | | Net Interest Margin | 4.18% | 3.98% | | Return on Average Assets | 1.25% | 1.31% | | Efficiency Ratio | 52.61% | 52.19% | | Adjusted Efficiency Ratio | 48.20% | 52.19% | - Net interest income for Q2 2025 increased by **$9.4 million** (**10.9%**) year-over-year, primarily due to lower rates paid on interest-bearing deposits and a change in deposit mix[242](index=242&type=chunk) - The provision for credit losses increased to **$11.9 million** in Q2 2025 from **$6.0 million** in Q2 2024, influenced by the First Security acquisition and weakening macroeconomic conditions[229](index=229&type=chunk)[251](index=251&type=chunk) - Total assets grew to **$9.7 billion**, a **2.4%** increase from year-end 2024, driven by a **$421.2 million** (**6.1%**) increase in loans and leases, reflecting both organic growth and the First Security acquisition[272](index=272&type=chunk) [Item 3. Quantitative and Qualitative Disclosures about Market Risk](index=82&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20about%20Market%20Risk) The company manages interest rate risk, its primary market risk, using NII and EVE models, showing asset sensitivity with a **4.1%** NII increase for a **+100 bps** rate hike Interest Rate Sensitivity Analysis (as of June 30, 2025) | Basis Point Change in Interest Rates | Estimated % Change in NII (Year 1) (in percentage) | Estimated % Change in EVE (in percentage) | | :--- | :--- | :--- | | +300 | 10.1% | (14.0)% | | +200 | 7.5% | (8.9)% | | +100 | 4.1% | (4.3)% | | -100 | (2.9)% | 3.9% | | -200 | (5.6)% | 6.1% | | -300 | (6.5)% | 5.6% | - The company's primary market risk is interest rate risk, which it manages through asset-liability strategies and the use of interest rate derivatives[357](index=357&type=chunk)[358](index=358&type=chunk) - As of June 30, 2025, the company had a notional amount of **$1.9 billion** of interest rate derivatives outstanding to manage interest rate exposure for both customers and its own balance sheet[362](index=362&type=chunk) [Item 4. Controls and Procedures](index=83&type=section&id=Item%204.%20Controls%20and%20Procedures) Management concluded that disclosure controls and procedures were effective as of June 30, 2025, with no material changes to internal control over financial reporting - The CEO and CFO concluded that as of June 30, 2025, the company's disclosure controls and procedures were effective[370](index=370&type=chunk) - No changes occurred in the company's internal control over financial reporting during the quarter ended June 30, 2025, that have materially affected, or are reasonably likely to materially affect, internal controls[371](index=371&type=chunk) [PART II. OTHER INFORMATION](index=84&type=section&id=PART%20II.%20OTHER%20INFORMATION) [Item 1. Legal Proceedings](index=84&type=section&id=Item%201.%20Legal%20Proceedings) The company is involved in routine litigation, but no current proceedings are expected to have a material adverse effect on its financial condition - The company is not party to any legal proceedings expected to have a material adverse effect on its business or financial condition[375](index=375&type=chunk) [Item 1A. Risk Factors](index=84&type=section&id=Item%201A.%20Risk%20Factors) No material changes to the risk factors previously disclosed in the company's 2024 Annual Report on Form 10-K were reported - No material changes to risk factors were reported since the filing of the 2024 Form 10-K[376](index=376&type=chunk) [Item 2. Unregistered Sales of Equity Securities and Use of Proceeds](index=84&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) The company repurchased **543,599 shares** during Q2 2025 under its stock repurchase program, which authorizes up to **1,250,000 shares** for 2025 Issuer Purchases of Equity Securities (Q2 2025) | Period | Total Shares Purchased | Average Price Paid per Share (in dollars) | Shares Purchased as Part of Program (in dollars) | | :--- | :--- | :--- | :--- | | April 2025 | 105,973 | $24.34 | 102,000 | | May 2025 | 25,390 | $26.37 | 23,364 | | June 2025 | 624,668 | $24.42 | 418,235 | | **Total Q2** | **756,031** | **$24.48** | **543,599** | - As of June 30, 2025, **782,401 shares** remained available for repurchase under the current program[379](index=379&type=chunk) [Item 3. Defaults Upon Senior Securities](index=84&type=section&id=Item%203.%20Defaults%20Upon%20Senior%20Securities) No defaults upon senior securities were reported during the period - There were no defaults upon senior securities during the period[380](index=380&type=chunk) [Item 4. Mine Safety Disclosures](index=84&type=section&id=Item%204.%20Mine%20Safety%20Disclosures) This item is not applicable to the company's operations - This item is not applicable to the company[381](index=381&type=chunk) [Item 5. Other Information](index=84&type=section&id=Item%205.%20Other%20Information) No other information was reported for the period - There was no other information to report for the period[382](index=382&type=chunk) [Item 6. Exhibits](index=85&type=section&id=Item%206.%20Exhibits) This section lists exhibits filed with the Form 10-Q, including CEO/CFO certifications and XBRL interactive data files - Exhibits filed include CEO and CFO certifications (31.1, 31.2, 32.1) and Inline XBRL financial data (101)[383](index=383&type=chunk)

Financial Data and Key Metrics Changes - The company reported net income of $30 million or $0.66 per diluted share on revenue of $110 million, with adjusted net income at $33.8 million or $0.75 per diluted share [13][14] - Total revenue increased by $7.4 million for the quarter, representing an 11% year-on-year growth [14] - The net interest margin expanded by 11 basis points to 4.18% compared to the prior quarter [16][24] - The efficiency ratio was excellent at 48.2% for the quarter, with a cost-to-asset ratio of 228 basis points, down 18 basis points from the prior quarter [16][18] Business Line Data and Key Metrics Changes - Total loans increased to $7.4 billion, with a growth of $307 million or 17.5% annualized, including $153 million from the First Security transaction [21] - Total deposits rose to $7.8 billion, up 13.7% annualized from the prior quarter, driven by money market and non-interest bearing demand accounts [23] - Non-interest income totaled $14.5 million, slightly lower than the prior quarter due to a negative fair value mark on servicing assets [25] Market Data and Key Metrics Changes - The company experienced a 9% increase in net interest income, attributed to higher balances and improved asset mix [15][24] - Loan origination activity was strong, with $359 million in new loans, up 16% quarter-over-quarter and 20% year-over-year [22] - The cost of deposits decreased by three basis points to 2.27% [23] Company Strategy and Development Direction - The company aims to become the preeminent commercial bank in Chicago, focusing on clear communication and execution of strategic plans [5][6] - The management emphasized a disciplined approach to risk and a commitment to employee engagement and development [9][10] - The company is well-positioned to seize opportunities for organic and inorganic growth while maintaining a sustainable dividend and share repurchase strategy [42][43] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the healthy customer activity and loan growth prospects despite macroeconomic uncertainties [37][38] - The company is prepared for potential regulatory changes as it approaches the $10 billion threshold, maintaining a long-term view on compliance [68][69] - The outlook for net interest income remains positive, with projections ranging from $95 million to $97 million for the next quarter [24] Other Important Information - The company repurchased approximately 418,000 shares, returning about $10 million to shareholders in addition to regular dividends [19][29] - The allowance for credit losses increased to $107.7 million, representing 1.47% of total loans, reflecting adjustments for macroeconomic conditions and loan growth [26][27] Q&A Session Summary Question: Insights on loan growth prospects - Management indicated that loan growth is a combination of gaining market share and improved client sentiment, with healthy customer activity continuing [35][38] Question: M&A opportunities and capital management - Conversations around M&A remain active, with management expressing a flexible approach to capital deployment, prioritizing organic growth and sustainable dividends [39][42] Question: Increase in nonaccrual loans and credit migration - Management noted that the increase in nonaccrual loans was not centered on a single line of business, and they are confident in their credit management strategies [45][48] Question: Securities portfolio growth outlook - Management indicated that they are likely to let cash flows run off and focus on funding loan growth rather than expanding the securities portfolio [54][55] Question: Cost outlook for the third quarter - The increase in costs is primarily related to the First Security acquisition, with guidance for the next quarter slightly higher due to marketing expenses [60][61] Question: Sustainability of earnings power - Management acknowledged that the earnings power has increased due to the First Security transaction and ongoing core business growth, but emphasized the need for continued execution [61][63]

Financial Performance - Byline's net income for 2Q25 was $30.1 million, with a diluted EPS of $0.66; adjusted EPS was $0.75[10] - Pre-Tax Pre-Provision income was $50.9 million, with a Pre-Tax Pre-Provision ROAA of 2.12%[12] - Revenue reached $110.5 million, up 7.2% quarter-over-quarter and 11.2% year-over-year[12] - The reported efficiency ratio was 52.61%, while the adjusted efficiency ratio was 48.20%[10] - Return on Average Assets (ROAA) was 1.25%, and the adjusted ROAA was 1.41%[10] - Return on Tangible Common Equity (ROTCE) was 12.83%, with an adjusted ROTCE of 14.37%[10] Balance Sheet and Portfolio Trends - Total assets were $9.7 billion[7] - Total loans and leases reached $7.4 billion, up $306.7 million or 17.5% from 1Q25[7, 18] - Total deposits amounted to $7.8 billion, an increase of $257.2 million or 13.7% from 1Q25[7, 23] - Non-interest-bearing demand deposits averaged $1.803 billion[19] - The average cost of deposits decreased by 3 bps to 2.27%[12, 23]

Core Insights - Byline Bancorp reported $110.45 million in revenue for Q2 2025, an 11.2% year-over-year increase, with an EPS of $0.75 compared to $0.68 a year ago, exceeding the Zacks Consensus Estimate of $107.45 million by 2.8% and delivering an EPS surprise of 11.94% [1] Financial Performance Metrics - Efficiency Ratio: 52.6% compared to the three-analyst average estimate of 53.7% [4] - Net Interest Margin: 4.2% versus the three-analyst average estimate of 4.1% [4] - Average Balance of Total Interest-Earning Assets: $9.21 billion compared to the $9.14 billion average estimate based on two analysts [4] - Net Charge-Offs of Loans and Leases: 0.4%, matching the two-analyst average estimate [4] - Net Interest Income: $95.97 million compared to the $92.54 million estimated by three analysts [4] - Net Gains on Sales of Loans: $5.41 million compared to the $5.06 million average estimate based on three analysts [4] - Total Non-Interest Income: $14.48 million compared to the $15.42 million average estimate based on three analysts [4] - Fees and Service Charges on Deposits: $2.63 million versus $2.88 million estimated by two analysts [4] - Wealth Management and Trust Income: $1.07 million compared to the $1.12 million average estimate based on two analysts [4] - ATM and Interchange Fees: $1.06 million versus $1.09 million estimated by two analysts [4] Stock Performance - Byline Bancorp shares returned +7.6% over the past month, outperforming the Zacks S&P 500 composite's +5.7% change, with a Zacks Rank 2 (Buy) indicating potential for near-term outperformance [3]

Group 1 - Byline Bancorp reported quarterly earnings of $0.75 per share, exceeding the Zacks Consensus Estimate of $0.67 per share, and showing an increase from $0.68 per share a year ago, resulting in an earnings surprise of +11.94% [1] - The company achieved revenues of $110.45 million for the quarter ended June 2025, surpassing the Zacks Consensus Estimate by 2.80%, and up from $99.37 million in the same quarter last year [2] - Byline Bancorp has consistently surpassed consensus EPS estimates over the last four quarters [2] Group 2 - The stock has underperformed the market, losing about 4.5% since the beginning of the year, while the S&P 500 has gained 8.1% [3] - The company's earnings outlook is crucial for investors, as it includes current consensus earnings expectations for upcoming quarters and any recent changes to those expectations [4] - The current consensus EPS estimate for the upcoming quarter is $0.69 on revenues of $108.4 million, and for the current fiscal year, it is $2.69 on revenues of $428.15 million [7] Group 3 - The Zacks Industry Rank indicates that the Banks - Northeast industry is currently in the top 23% of over 250 Zacks industries, suggesting a favorable environment for stock performance [8] - Byline Bancorp has a Zacks Rank 2 (Buy), indicating expectations for the stock to outperform the market in the near future [6]

[Financial Highlights and Executive Commentary](index=1&type=section&id=Byline%20Bancorp%2C%20Inc.%20Reports%20Second%20Quarter%202025%20Financial%20Results) Byline Bancorp reported strong Q2 2025 results, with net income of $30.1 million and a 4.18% NIM, boosted by the First Security acquisition Q2 2025 Financial Highlights ($ in thousands) | Metric | 2Q25 | 1Q25 | 2Q24 | | :--- | :--- | :--- | :--- | | Net Income | $30,082 | $28,248 | $29,671 | | Diluted EPS | $0.66 | $0.64 | $0.68 | | Adjusted Diluted EPS (Non-GAAP) | $0.75 | $0.65 | $0.68 | | Net Interest Income | $95,970 | $88,216 | $86,526 | | Net Interest Margin (NIM) | 4.18% | 4.07% | 3.98% | | Total Assets | $9,720,218 | $9,584,732 | $9,633,815 | | Tangible Book Value Per Share (Non-GAAP) | $21.56 | $20.91 | $18.84 | - Successfully completed and integrated the acquisition of First Security Bancorp, Inc., which is believed to have strengthened Byline's return profile[2](index=2&type=chunk) - Executive commentary emphasized strong quarterly performance characterized by solid earnings, profitability, NIM expansion, healthy loan and deposit growth, and controlled expenses[2](index=2&type=chunk) - The Board of Directors declared a cash dividend of **$0.10 per share**, payable on August 19, 2025[4](index=4&type=chunk) - The company repurchased **543,599 shares** of its common stock at an average price of **$24.09 per share** during the second quarter[2](index=2&type=chunk)[19](index=19&type=chunk) [Detailed Financial Analysis](index=3&type=section&id=Detailed%20Financial%20Analysis) Detailed analysis of Q2 2025 operations shows increased net interest income and improved efficiency, alongside asset and deposit growth [Statements of Operations Highlights](index=3&type=section&id=STATEMENTS%20OF%20OPERATIONS%20HIGHLIGHTS) Net interest income increased by 8.8% to $96.0 million, with NIM expanding to 4.18%, while expenses rose due to acquisition costs - Net interest income increased by **$7.8 million (8.8%)** from Q1 2025, primarily due to loan and lease portfolio growth from the First Security acquisition[5](index=5&type=chunk) - Tax-equivalent net interest margin expanded by **11 basis points to 4.19%** compared to Q1 2025, driven by higher yields on securities and lower borrowing costs[6](index=6&type=chunk) - The provision for credit losses increased by **$2.7 million to $11.9 million** compared to Q1 2025, mainly due to loan portfolio growth and a weaker macroeconomic forecast[8](index=8&type=chunk) - Non-interest income decreased by **$381,000 (2.6%)** from Q1 2025, primarily due to a larger downward revaluation of the loan servicing asset[9](index=9&type=chunk) - Non-interest expense increased by **$3.2 million (5.6%)** from Q1 2025, mainly due to costs associated with the First Security acquisition and a secondary public stock offering[10](index=10&type=chunk) - The adjusted efficiency ratio (non-GAAP) improved by **484 basis points to 48.20%** for Q2 2025, compared to 53.04% in Q1 2025[11](index=11&type=chunk) [Statements of Financial Condition Highlights](index=4&type=section&id=STATEMENTS%20OF%20FINANCIAL%20CONDITION%20HIGHLIGHTS) Total assets grew to $9.7 billion, driven by loan and deposit increases, while non-performing assets also rose - Total assets increased by **$135.5 million (1.4%) to $9.7 billion** at June 30, 2025, compared to March 31, 2025[14](index=14&type=chunk) - The Allowance for Credit Losses (ACL) increased by **$7.3 million to $107.7 million**, with the First Security acquisition contributing **$4.1 million** of the increase[15](index=15&type=chunk) - Net charge-offs rose to **$7.7 million (0.43% of average loans)** in Q2 2025, up from $6.6 million in Q1 2025[15](index=15&type=chunk) - Non-performing assets increased by **$12.6 million to $72.5 million**, representing **0.75% of total assets**[16](index=16&type=chunk) - Total deposits grew by **$257.2 million to $7.8 billion**, mainly due to increases in money market and non-interest-bearing accounts from the First Security acquisition[17](index=17&type=chunk) - Total stockholders' equity increased by **$61.3 million (5.4%) to $1.2 billion**, primarily due to common stock issued for the acquisition and an increase in retained earnings[19](index=19&type=chunk) [Consolidated Financial Statements](index=6&type=section&id=Consolidated%20Financial%20Statements) This section presents the unaudited consolidated financial statements, including balance sheets, income statements, and detailed financial ratios [Consolidated Statements of Financial Condition](index=6&type=section&id=CONSOLIDATED%20STATEMENTS%20OF%20FINANCIAL%20CONDITION%20%28unaudited%29) Total assets reached $9.72 billion, driven by increased net loans and deposits, while stockholders' equity grew to $1.19 billion Consolidated Balance Sheet Highlights (in thousands) | Account | June 30, 2025 | March 31, 2025 | June 30, 2024 | | :--- | :--- | :--- | :--- | | Total Assets | $9,720,218 | $9,584,732 | $9,633,815 | | Net Loans and Leases | $7,220,328 | $6,925,417 | $6,791,474 | | Total Deposits | $7,810,479 | $7,553,308 | $7,347,181 | | Total Liabilities | $8,527,802 | $8,453,654 | $8,600,801 | | Total Stockholders' Equity | $1,192,416 | $1,131,078 | $1,033,014 | [Consolidated Statements of Operations](index=7&type=section&id=CONSOLIDATED%20STATEMENTS%20OF%20OPERATIONS%20%28unaudited%29) Q2 2025 net interest income was $96.0 million, resulting in a net income of $30.1 million, or $0.66 per diluted share Consolidated Income Statement Highlights (in thousands) | Account | Q2 2025 | Q1 2025 | Q2 2024 | | :--- | :--- | :--- | :--- | | Net Interest Income | $95,970 | $88,216 | $86,526 | | Provision for Credit Losses | $11,923 | $9,179 | $6,045 | | Total Non-interest Income | $14,483 | $14,864 | $12,844 | | Total Non-interest Expense | $59,602 | $56,429 | $53,210 | | Net Income | $30,082 | $28,248 | $29,671 | | Diluted EPS | $0.66 | $0.64 | $0.68 | [Selected Financial Data and Ratios](index=8&type=section&id=SELECTED%20FINANCIAL%20DATA%20%28unaudited%29) Key Q2 2025 ratios include a 4.18% net interest margin, 1.25% ROAA, and an improved 48.20% adjusted efficiency ratio Key Performance Ratios (Q2 2025) | Ratio | Q2 2025 | Q1 2025 | Q2 2024 | | :--- | :--- | :--- | :--- | | Net Interest Margin | 4.18% | 4.07% | 3.98% | | Adjusted Efficiency Ratio (Non-GAAP) | 48.20% | 53.04% | 52.19% | | Return on Average Assets (ROAA) | 1.25% | 1.25% | 1.31% | | Return on Avg. Tangible Common Equity (Non-GAAP) | 12.83% | 12.92% | 15.27% | | Tangible Common Equity to Tangible Assets (Non-GAAP) | 10.39% | 9.95% | 8.82% | | Common Equity Tier 1 Capital Ratio | 11.85% | 11.78% | 10.84% | [Analysis of Net Interest Margin](index=9&type=section&id=QUARTER-TO-DATE%20STATEMENT%20OF%20AVERAGE%20INTEREST-EARNING%20ASSETS%20AND%20AVERAGE%20INTEREST-BEARING%20LIABILITIES%20%28unaudited%29) Average interest-earning assets grew to $9.21 billion, with a favorable yield-cost dynamic leading to a 4.19% net interest margin Net Interest Margin Analysis | Metric | Q2 2025 | Q1 2025 | Q2 2024 | | :--- | :--- | :--- | :--- | | Average Interest-Earning Assets ($ thousands) | $9,208,156 | $8,785,619 | $8,743,462 | | Average Yield on Earning Assets | 6.31% | 6.24% | 6.52% | | Average Cost of Interest-Bearing Liabilities | 3.00% | 3.07% | 3.62% | | Net Interest Spread | 3.31% | 3.17% | 2.90% | | Net Interest Margin (FTE) | 4.19% | 4.08% | 3.99% | [Loan Portfolio and Credit Quality Details](index=10&type=section&id=SELECTED%20BALANCE%20SHEET%20TABLES%20AND%20FINANCIAL%20RATIOS%20%28unaudited%29) Total loans and leases reached $7.33 billion, with ACL at $107.7 million, while non-performing loans increased to 0.92% - Total loans and leases reached **$7.33 billion**, with commercial and industrial (**37.4%**) and commercial real estate (**29.8%**) being the largest components of the originated portfolio[38](index=38&type=chunk) Allowance for Credit Losses (ACL) Activity (in thousands) | | Q2 2025 | | :--- | :--- | | Beginning ACL | $100,420 | | Adjustment for acquired PCD loans | $3,206 | | Provision for credit losses | $11,757 | | Net charge-offs | ($7,656) | | **Ending ACL** | **$107,727** | Non-Performing Assets (in thousands) | Metric | June 30, 2025 | March 31, 2025 | June 30, 2024 | | :--- | :--- | :--- | :--- | | Non-performing loans and leases | $67,553 | $53,619 | $63,808 | | Other real estate owned | $4,946 | $6,249 | $780 | | **Total non-performing assets** | **$72,499** | **$59,868** | **$64,588** | | NPLs as % of total loans | 0.92% | 0.76% | 0.93% | [Deposit Composition](index=11&type=section&id=Deposit%20Composition) Total deposits increased by 3.4% to $7.81 billion, driven by growth in money market and non-interest-bearing accounts Deposit Composition (in thousands) | Deposit Type | June 30, 2025 | March 31, 2025 | % Change QoQ | | :--- | :--- | :--- | :--- | | Non-interest-bearing demand | $1,773,229 | $1,715,599 | 3.4% | | Money market demand accounts | $2,996,684 | $2,759,185 | 8.6% | | Time deposits (all) | $1,682,086 | $1,755,014 | -4.2% | | Other (Checking, Savings) | $1,358,480 | $1,323,510 | 2.6% | | **Total Deposits** | **$7,810,479** | **$7,553,308** | **3.4%** | [Reconciliation of Non-GAAP Financial Measures](index=12&type=section&id=RECONCILIATION%20OF%20NON-GAAP%20FINANCIAL%20MEASURES%20%28unaudited%29) This section reconciles non-GAAP financial measures, showing adjustments for merger and offering expenses to derive adjusted net income and EPS - Management uses non-GAAP financial measures to provide supplementary information on the company's financial condition and results, acknowledging they have limitations and should not be a substitute for GAAP[40](index=40&type=chunk) Reconciliation of Net Income and EPS (Q2 2025, in thousands) | Item | Amount | Per Share | | :--- | :--- | :--- | | **Reported Net Income / Diluted EPS** | **$30,082** | **$0.66** | | Merger-related expenses | $4,450 | $0.10 | | Secondary offering expenses | $413 | $0.01 | | Tax benefit on items | ($1,117) | ($0.02) | | **Adjusted Net Income / Diluted EPS** | **$33,828** | **$0.75** | Key Non-GAAP Reconciliations (Q2 2025) | Metric | GAAP Value | Adjustment | Non-GAAP Value | | :--- | :--- | :--- | :--- | | Non-interest Expense | $59.6M | ($4.9M) | $54.7M | | Pre-tax Pre-provision Net Income | $50.9M | $4.9M | $55.7M | | Efficiency Ratio | 52.61% | - | 48.20% (Adjusted) | | Tangible Common Equity | $1.19B | ($203.5M) | $988.9M |

Group 1 - The regional bank sector has experienced a strong rally over the past three months, but uncertainty remains for bank stocks, especially for commercial-focused players like Byline Bancorp [1] - A long-term, buy-and-hold investment strategy is favored, particularly for stocks that can consistently deliver high-quality earnings, often found in the dividend and income section [1] Group 2 - The article does not provide any specific financial data or performance metrics related to Byline Bancorp or the regional bank sector [1]