Financial Performance - Net income was $37.2 million, with diluted EPS at $0.82[10] - Pre-Tax Pre-Provision income reached $55.2 million, resulting in a Pre-Tax Pre-Provision ROAA of 2.25%[10] - Net interest income increased by 4.1% to $99.9 million[10] - Non-interest income increased by 9.5% to $15.9 million[37] Balance Sheet & Capital - Total assets reached $9.8 billion[7] - Total loans & leases amounted to $7.5 billion[7] - Total deposits were $7.8 billion[7] - Tangible common equity stood at $1.0 billion[7] - Common Equity Tier 1 was 12.15%[10] - TCE/TA ratio was 10.78%, up 39 bps[10]

Core Insights - Byline Bancorp reported a revenue of $115.74 million for the quarter ended September 2025, reflecting a year-over-year increase of 13.6% [1] - The company's EPS was $0.83, up from $0.70 in the same quarter last year, exceeding the consensus estimate of $0.71 by 16.9% [1] Financial Performance Metrics - Efficiency Ratio stood at 51%, slightly better than the average estimate of 51.3% from three analysts [4] - Net Interest Margin was reported at 4.3%, surpassing the estimated 4.1% [4] - Average Balance of Total Interest-Earning Assets was $9.29 billion, close to the average estimate of $9.34 billion [4] - Net charge-offs of loans and leases were at 0.4%, matching the average estimate [4] - Net Interest Income reached $99.87 million, exceeding the average estimate of $95.99 million [4] - Net gains on sales of loans were $6.98 million, higher than the average estimate of $5.26 million [4] - Total Non-Interest Income was reported at $15.86 million, above the average estimate of $14.98 million [4] - Fees and service charges on deposits amounted to $2.74 million, slightly above the estimated $2.72 million [4] - Wealth management and trust income was $1.37 million, exceeding the average estimate of $1.08 million [4] - ATM and interchange fees were reported at $1.02 million, below the estimated $1.18 million [4] Stock Performance - Byline Bancorp's shares have returned -4.7% over the past month, contrasting with the Zacks S&P 500 composite's +0.2% change [3] - The stock currently holds a Zacks Rank 3 (Hold), indicating potential performance in line with the broader market [3]

Financial Performance - Third quarter net income was $37.2 million, with diluted earnings per share of $0.82, reflecting a strong performance compared to $30.1 million in the previous quarter[1] - Net interest income increased to $99.9 million, up $3.9 million or 4.1% from the second quarter of 2025, driven by growth in the loan and lease portfolio[4] - Non-interest income reached $15.9 million, an increase of $1.4 million or 9.5% from the previous quarter, primarily due to higher net gains on sales of loans[8] - Total revenue for Q3 2025 reached $115,735,000, representing a 4.1% increase from $110,453,000 in Q2 2025 and a 13.6% increase from $101,840,000 in Q3 2024[41] - Reported net income for Q3 2025 was $37,200,000, an increase of 23.4% from $30,082,000 in Q2 2025 and 22.7% from $30,328,000 in Q3 2024[40] Asset and Deposit Growth - Total deposits rose to $7.8 billion, an increase of $17.7 million or 0.2% from the previous quarter, mainly due to increases in non-interest-bearing demand accounts[16] - Total assets were $9.8 billion, reflecting an increase of $92.2 million or 0.9% compared to the previous quarter, driven by growth in net loans and leases[13] - Total stockholders' equity increased to $1.2 billion, up $45.3 million or 3.8% from the previous quarter, primarily due to retained earnings from net income[18] - Total deposits slightly increased to $7,828,197 thousand, a 0.2% rise from $7,810,479 thousand in June 2025, and a 4.4% increase from $7,497,887 thousand in September 2024[38] Credit Quality and Losses - The provision for credit losses decreased to $5.3 million, down $6.6 million from the previous quarter, attributed to lower non-performing loans[7] - Non-performing loans and leases to total loans and leases held for investment decreased to 0.85%, down from 1.02% in the previous year, a reduction of 16.67%[32] - The allowance for credit losses on loans and leases was $105,717 thousand as of September 30, 2025, slightly down from $107,727 thousand in the previous quarter[28] - The net charge-offs for loans and leases were $7,107 thousand for the three months ended September 30, 2025, compared to $7,656 thousand in June 2025[37] Efficiency and Ratios - The efficiency ratio improved to 51.00%, a decrease of 161 basis points from the previous quarter, driven by increased total revenues[10] - Return on average stockholders' equity rose to 12.21%, compared to 11.39% a year ago, indicating an increase of 7.22%[32] - The adjusted return on average assets for Q3 2025 was 1.54%, compared to 1.41% in Q2 2025 and 1.30% in Q3 2024[42] - Common equity tier 1 capital ratio increased to 12.15%, compared to 11.35% a year ago, reflecting a 7.06% improvement[32] Earnings and Shareholder Value - Basic earnings per share rose to $0.82 for the third quarter of 2025, compared to $0.66 in the previous quarter, marking a 24.2% increase[30] - Adjusted diluted earnings per share rose to $0.83 in Q3 2025, up 10.7% from $0.75 in Q2 2025 and 18.6% from $0.70 in Q3 2024[40] - Cash dividends per common share remained stable at $0.10, consistent with the previous quarter and up from $0.09 a year ago[32] - Tangible book value per common share increased to $22.58, up 4.7% from the previous quarter[1] Interest Income and Margin - The net interest margin expanded to 4.27%, an increase of nine basis points compared to the previous quarter[5] - Net interest income for the quarter was $99,871 thousand, up from $87,455 thousand in the same quarter last year, representing an increase of 14.26%[35] - The average yield on interest-earning assets was 6.36% for the quarter ended September 30, 2025, compared to 6.31% for the previous quarter and 6.51% for the same quarter last year[35] - Total interest-earning assets increased to $9,286.27 million for the three months ended September 30, 2025, compared to $8,961.65 million for the same period in 2024, reflecting a growth of 3.62%[35]

Core Insights - Byline Bank has been recognized for the second consecutive year as one of Chicago's Best Workplaces, ranking 5th among large companies with over 250 employees and 25th overall in the city [1][2] Company Overview - Byline Bank is headquartered in Chicago and is a subsidiary of Byline Bancorp, Inc. (NYSE:BY), offering full-service commercial banking to small- and medium-sized businesses, financial sponsors, and consumers [5] - The bank has approximately $9.7 billion in assets and operates 45 branch locations in the Chicago and Milwaukee metropolitan areas [5] - Byline Bank provides a wide range of banking products and services, including small-ticket equipment leasing solutions, and is recognized as one of the top U.S. Small Business Administration (SBA) lenders by volume for FY2024 [5] Recognition Process - The recognition as one of Chicago's Best Workplaces involves a two-part survey process: the first part evaluates workplace policies and practices, accounting for approximately 25% of the total evaluation [3] - The second part consists of an employee survey measuring the employee experience, which contributes about 75% to the overall evaluation [4] - The final rankings are determined by the combined scores from both parts of the survey, managed by Best Companies Group [4]

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]