Forward-Looking Statements 4Q25 Earnings Presentation Forward-Looking Statements This communication contains forward-looking statements within the meaning of the U.S. federal securities laws. Forward-looking statements include, without limitation, statements concerning plans, estimates, calculations, forecasts and projections with respect to the anticipated future performance of the Company. These statements are often, but not always, made through the use of words or phrases such as ''may'', ''might'', ''sh ...

Core Insights - Byline Bancorp reported revenue of $117.01 million for the quarter ended December 2025, reflecting an 11.8% increase year-over-year and a surprise of +5.13% over the Zacks Consensus Estimate of $111.3 million [1] - The earnings per share (EPS) for the quarter was $0.76, up from $0.69 in the same quarter last year, with an EPS surprise of +6.04% compared to the consensus estimate of $0.72 [1] Financial Performance Metrics - Efficiency Ratio was reported at 50.3%, better than the estimated 52.5% by three analysts [4] - Net Interest Margin stood at 4.4%, exceeding the average estimate of 4.2% from three analysts [4] - Average Balance of Total interest-earning assets was $9.23 billion, slightly below the two-analyst average estimate of $9.39 billion [4] - Net charge-offs of loans and leases were at 0.4%, matching the two-analyst average estimate [4] - Net Interest Income was reported at $101.26 million, surpassing the three-analyst average estimate of $99.04 million [4] - Net gains on sales of loans reached $5.39 million, significantly higher than the three-analyst average estimate of $3.83 million [4] - Total Non-Interest Income was $15.75 million, exceeding the three-analyst average estimate of $13.82 million [4] - Fees and service charges on deposits were reported at $2.8 million, slightly below the estimated $2.82 million by two analysts [4] - Wealth management and trust income was $1.32 million, below the two-analyst average estimate of $1.39 million [4] - ATM and interchange fees were reported at $0.98 million, lower than the estimated $1.1 million by two analysts [4] Stock Performance - Byline Bancorp shares have returned +5.9% over the past month, outperforming the Zacks S&P 500 composite's +0.7% change [3] - The stock currently holds a Zacks Rank 2 (Buy), indicating potential for outperformance in the near term [3]

Financial Performance - Fourth quarter net income was $34.5 million, with diluted earnings per share of $0.76, while full year net income reached $130.1 million, up 7.7% from the previous year[1]. - Net interest income for the fourth quarter was $101.3 million, an increase of $1.4 million, or 1.4%, from the third quarter, and full year net interest income was $385.3 million, up $37.3 million, or 10.7%[4][7]. - Non-interest income for the fourth quarter was $15.7 million, a slight decrease of 0.6% from the previous quarter, while full year non-interest income was $60.9 million, an increase of 3.5% year-over-year[12][13]. - Net income for the three months ended December 31, 2025, was $34,521,000, down from $37,200,000 in the previous quarter, representing a decrease of 5%[43]. - Basic earnings per share for the three months ended December 31, 2025, was $0.77, compared to $0.82 in the previous quarter, reflecting a decline of 6%[43]. - Adjusted diluted earnings per common share for the year ended December 31, 2025, increased to $3.00 from $2.76 in 2024[45]. Interest Income and Margin - The tax-equivalent net interest margin for the fourth quarter was 4.36%, an increase of eight basis points from the previous quarter, and for the full year, it was 4.23%, up 25 basis points year-over-year[5][8]. - The net interest margin for Q4 2025 was 4.35%, up from 4.27% in Q3 2025 and 4.01% in Q4 2024[45]. - Total interest and dividend income for the year ended December 31, 2025, was $572,220,000, an increase from $565,929,000 in the previous year, reflecting a growth of 1%[43]. - Net interest income after provision for credit losses was $91,553,000 for the three months ended December 31, 2025, compared to $94,592,000 in the previous quarter, reflecting a decrease of 3%[43]. - The average yield on interest-earning assets was 6.21% for the quarter, compared to 6.33% in the same quarter last year, indicating a decrease of 0.12 percentage points[48]. Credit Losses and Provisions - Provision for credit losses for the fourth quarter was $9.7 million, an increase of $4.4 million from the third quarter, and for the full year, it was $36.1 million, up $9.1 million compared to the prior year[10][11]. - Provision for credit losses increased to $9,702,000 for the three months ended December 31, 2025, from $5,298,000 in the previous quarter, indicating a rise of 83%[43]. - The allowance for credit losses was $108.8 million as of December 31, 2025, an increase of 2.9% from the previous quarter and an increase of 11.1% from the previous year[24]. Assets and Equity - Total assets as of December 31, 2025, were $9.7 billion, a decrease of 1.6% from the previous quarter, but an increase of 1.6% compared to the previous year[22]. - Total stockholders' equity rose to $1.3 billion at December 31, 2025, an increase of $30.2 million, or 2.4%, from September 30, 2025, and up $176.4 million, or 16.2%, from December 31, 2024[31]. - Total stockholders' equity increased to $1,290.78 million, up from $1,094.02 million year-over-year, reflecting a growth of 17.96%[48]. Non-Performing Assets - Non-performing assets increased to $74.7 million, or 0.77% of total assets, as of December 31, 2025, up from $67.4 million, or 0.69% at September 30, 2025[27]. - Total non-performing loans and leases increased to $71,290 thousand, a rise of 12.9% from $63,158 thousand in the previous quarter[54]. - The allowance for credit losses as a percentage of non-performing loans and leases was 152.66%, down from 167.38% in the previous quarter[54]. Dividends and Share Repurchase - The Board declared a cash dividend of $0.12 per share, representing a 20.0% increase from the previous dividend of $0.10 per share[3]. - The company purchased 345,706 shares of common stock at an average price of $28.21 during Q4 2025 and 922,729 shares at an average price of $25.72 for the year[32]. Operational Efficiency - The efficiency ratio improved to 50.32% for the fourth quarter, compared to 51.00% for the third quarter, and for the full year, it was 51.83%, an improvement of 62 basis points year-over-year[17][19]. - Adjusted efficiency ratio for Q4 2025 improved to 50.15%, down from 50.27% in Q3 2025 and 53.37% in Q4 2024, indicating better cost management[58]. Future Outlook - The company plans to host a conference call on January 23, 2026, to discuss quarterly financial results[33].

Core Viewpoint - Byline Bancorp, Inc. reported solid financial results for the full year 2025, highlighting record revenues and growth in net interest income [1] Financial Results - The company achieved record revenues of $446.3 million for the full year 2025, reflecting a strong performance compared to the previous year [1] - Net interest income for the fourth quarter of 2025 was $101,255 thousand, an increase from $99,890 thousand in the third quarter of 2025 and $88,524 thousand in the fourth quarter of 2024 [1] - Non-interest income for the fourth quarter of 2025 was $15,750 thousand, slightly down from $15,845 thousand in the third quarter of 2025 and $16,149 thousand in the fourth quarter of 2024 [1] - Total revenue for the fourth quarter of 2025 was $117,005 thousand, up from $115,735 thousand in the third quarter of 2025 and $104,673 thousand in the fourth quarter of 2024 [1]

Core Insights - Byline Bank has been recognized as one of America's Best Workplaces and Best Remote and Hybrid Workplaces for 2026 by Best Companies Group, highlighting its commitment to employee engagement and support [1][2] Group 1: Recognition and Awards - Best Companies Group has awarded Byline Bank for its workplace culture based on employee engagement data, emphasizing the bank's dedication to creating a supportive environment [1][2] - The recognition reflects direct employee feedback from the annual engagement survey, showcasing Byline's focus on inclusivity and career growth for its employees [2] Group 2: Company Overview - Byline Bank, a subsidiary of Byline Bancorp, Inc., is headquartered in Chicago and operates 45 branch locations in the Chicago and Milwaukee metropolitan areas [4] - The bank has approximately $9.8 billion in assets and offers a wide range of commercial and community banking products, including small-ticket equipment leasing solutions [4] - Byline Bank is recognized as one of the top U.S. Small Business Administration (SBA) lenders according to national rankings by volume for FY2024 [4]

Group 1 - Byline Bancorp has experienced a decline in share value, losing a low-single-digit percentage recently, similar to trends in the wider regional bank sector [1] - The investment strategy focuses on a long-term, buy-and-hold approach, emphasizing stocks that can deliver sustainable high-quality earnings, particularly in the dividend and income categories [1] Group 2 - The article does not provide any specific investment recommendations or advice regarding the suitability of investments for particular investors [2][3] - There is no indication of any current stock, option, or derivative positions held by the analyst in relation to the companies mentioned [2]

Group 1 - Byline Bancorp has experienced a decline in share value, losing a low-single-digit percentage in recent months, similar to trends observed in the wider regional bank sector [1] - The investment strategy emphasized is a long-term, buy-and-hold approach, focusing on stocks that can consistently deliver high-quality earnings, particularly in the dividend and income categories [1]

Acquisition and Mergers - Byline Bancorp, Inc. completed the acquisition of First Security Bancorp, Inc. on April 1, 2025, merging its subsidiary First Security Trust and Savings Bank into Byline Bank[206] Financial Performance - Consolidated net income for the three months ended September 30, 2025, was $37.2 million, an increase of $6.9 million from $30.3 million for the same period in 2024[230] - Basic and diluted earnings per common share for the three months ended September 30, 2025, were $0.82, compared to $0.70 and $0.69 for the same period in 2024[230] - Consolidated net income for the nine months ended September 30, 2025, was $95.5 million, an increase of $5.1 million from $90.4 million for the same period in 2024[233] - Total revenue for the nine months ended September 30, 2025, was $100.4 million, compared to $90.9 million for the same period in 2024, indicating a 10.4% growth[352] Net Interest Income - Net interest income increased by $12.4 million, primarily due to lower rates paid on deposits[231] - Net interest income for the three months ended September 30, 2025, was $99,871, compared to $87,455 for the same period in 2024, reflecting an increase of 14.7%[240] - Net interest income for the nine months ended September 30, 2025, was $284.1 million, an increase of $24.5 million or 9.5% compared to $259.5 million in the same period of 2024[248] - The net interest margin for the three months ended September 30, 2025, was 4.27%, an increase of 39 basis points from 3.88% in the same period of 2024[250] Credit Losses and Risk Management - The allowance for credit losses (ACL) is maintained at a level deemed appropriate by management, reflecting current expected credit losses over the life of financial assets[211] - Management utilizes a combination of internal and external data to estimate expected credit losses, adjusting for macroeconomic variables such as unemployment rates[214] - The allowance for credit losses on loans and leases was $109,877, up from $101,001, indicating a focus on risk management[240] - The ACL computation includes factors such as actual loss experience, changes in portfolio size and risk profile, and prevailing economic conditions[303] Asset and Liability Management - Total assets increased to $9,716,920, up from $9,373,849, representing a growth of 3.66% year-over-year[240] - Total liabilities rose by $169.7 million, or 2.0%, to $8.6 billion at September 30, 2025, with total deposits increasing by $369.6 million, or 5.0%[278] - The total capital to risk-weighted assets ratio for Byline Bank was 14.35% as of September 30, 2025, exceeding the required minimum of 8.00%[335] Non-Interest Income - Non-interest income to total revenues was 13.71% for the three months ended September 30, 2025, compared to 14.13% for the same period in 2024[227] - Total non-interest income for the nine months ended September 30, 2025, was $45.2 million, a 5.9% increase from $42.7 million in the same period of 2024[258] Expenses - Total non-interest expense for the three months ended September 30, 2025, was $60.5 million, an increase of $6.2 million or 11.4% compared to the same period in 2024[265] - Salaries and employee benefits increased to $37.5 million for the three months ended September 30, 2025, up $2.5 million or 7.2% from 2024[265] Loans and Leases - Total loans and leases increased to $7.4 billion as of September 30, 2025, up $533.9 million or 7.7% from $6.9 billion at December 31, 2024[287] - The loan portfolio included $428.2 million of unguaranteed 7(a) SBA and USDA loans, with the top three industries being retail trade (20.6%), accommodation and food services (13.4%), and health care and social assistance (8.3%)[288] Capital Management - The common equity tier 1 capital ratio was 12.15% as of September 30, 2025, compared to 11.35% as of September 30, 2024[227] - Byline Bank's stockholders' equity increased to $1.2 billion, up $146.2 million or 13.4% from $1.1 billion at December 31, 2024[331] Regulatory Compliance - The Company and Byline Bank were considered "well-capitalized" as of September 30, 2025, exceeding all applicable regulatory capital requirements[334] Dividends and Stock Repurchase - Dividends declared for the three months ended September 30, 2025, were $4.6 million, an increase from $4.0 million in the same period of 2024[341] - The company purchased 7,424 shares and 577,023 shares under the stock repurchase program during the three and nine months ended September 30, 2025, respectively[340] Interest Rate Risk Management - Interest rate risk management is overseen by the Board of Directors and management asset liability committees[359] - The company evaluates interest rate risk using net interest income (NII) and economic value of equity (EVE) simulations[363]

Group 1 - The article does not provide any specific content related to a company or industry [1]

Financial Data and Key Metrics Changes - For Q3 2025, the company reported net income of $37 million or $0.82 per diluted share on revenue of $116 million, reflecting a quarter-on-quarter revenue growth of 13.6% and EPS growth of 19% year-on-year [10][11] - Pre-tax, pre-provision income was $55 million, with a pre-tax, pre-provision ROA of 2.25%, ROA of 1.5%, and ROTC of 15.1%, indicating strong profitability metrics [10][11] - The net interest margin expanded by 9 basis points to 4.27%, supported by an improved deposit mix and higher asset yields [11][15] Business Line Data and Key Metrics Changes - Total loans grew by 6% linked quarter and 11% year-to-date, ending at $7.5 billion, with originations of $264 million driven by commercial banking and equipment leasing [11][13] - Non-interest income totaled $15.9 million, up 9.5% from the last quarter, primarily due to a $7 million gain on the sale of loans [16] - Non-interest expense increased to $60.5 million, reflecting higher salary and employee benefits, but the efficiency ratio improved to 51% from 52.6% in the previous quarter [16][17] Market Data and Key Metrics Changes - Deposits totaled $7.8 billion, up 1% linked quarter and 7% year-to-date, with non-interest-bearing accounts increasing by $160 million or 9% linked quarter [11][14] - The company experienced stable demand for credit, with loan commitments growing and draw activity contributing to loan growth [11][13] Company Strategy and Development Direction - The company aims to build a preeminent commercial banking franchise in Chicago, focusing on expanding its commercial payments business and onboarding customers in 2026 [19][20] - The company remains open to disciplined M&A opportunities that align with its strategic goals, emphasizing capital flexibility and the potential for future growth [7][36] Management's Comments on Operating Environment and Future Outlook - Management noted stable to improving credit quality despite macroeconomic uncertainties and geopolitical tensions, with vigilance over potential risks [7] - The company anticipates crossing the $10 billion asset threshold in Q1 2026, which will delay the impact of the Durbin Amendment until 2027 [20][39] Other Important Information - The company was recognized with multiple awards for its workplace environment and employee engagement, contributing to low employee turnover [8] - The company refinanced $75 million in subordinated debt, benefiting from improved credit ratings and market demand [12] Q&A Session Summary Question: Discussion on margin and net interest income - Management discussed the assumptions behind net interest income and the impact of competitive rates on deposit resets [26][27] Question: Thoughts on M&A activity - Management expressed openness to M&A opportunities that align with their strategic goals, emphasizing the importance of capital flexibility [35][36] Question: Impact of government shutdown on SBA business - Management explained that while they continue to originate SBA loans, the shutdown may delay the sale of loans in the secondary market [44][45] Question: Commentary on credit reserves - Management clarified that reserve levels were adjusted based on the resolution of specific loans rather than overall portfolio performance [104] Question: Insights on commercial payments business - Management provided details on the commercial payments business, highlighting the onboarding process and expectations for growth in 2026 [68][71]