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]

Core Viewpoint - Byline Bancorp (BY) has been upgraded to a Zacks Rank 2 (Buy), indicating a positive outlook on its earnings estimates, which is a significant factor influencing stock prices [1][3]. Earnings Estimates and Stock Price Impact - The Zacks rating system emphasizes the importance of earnings estimate revisions, which are strongly correlated with near-term stock price movements [4][6]. - An increase in earnings estimates typically leads to higher fair value calculations by institutional investors, resulting in buying or selling pressure that affects stock prices [4][5]. Byline Bancorp's Earnings Outlook - Byline Bancorp is projected to earn $2.69 per share for the fiscal year ending December 2025, with no year-over-year change expected [8]. - Over the past three months, the Zacks Consensus Estimate for Byline Bancorp has increased by 2.5%, reflecting a positive trend in earnings estimates [8]. Zacks Rank System - The Zacks Rank system classifies stocks into five groups based on earnings estimates, with only the top 20% receiving a "Strong Buy" or "Buy" rating [9][10]. - Byline Bancorp's upgrade to Zacks Rank 2 places it in the top 20% of Zacks-covered stocks, suggesting potential for market-beating returns in the near term [10].

Financial Data and Key Metrics Changes - Byline Bancorp reported a net income of $121 million or $2.75 per diluted share on revenue of $407 million, which was up 5% year on year [8] - Total assets grew to $9.5 billion, with loans and leases increasing to $6.9 billion, funded by deposits that grew to $7.5 billion [8] - Key profitability metrics include a pretax return on assets (ROA) of 205 basis points, return on assets of 131 basis points, and return on tangible common equity of just under 15% [8][9] - The cost to asset ratio improved by 22 basis points to 2.38% due to positive operating leverage [9] Business Line Data and Key Metrics Changes - The company has developed a distinct commercial banking franchise with a focus on relationship-driven approaches, which has attracted top-tier talent [6] - Investments in new capabilities have helped the company meet customer financial goals effectively [5] Market Data and Key Metrics Changes - Byline Bancorp's financial results ranked in the top quartile of its peer group on several important profitability and performance metrics [6] Company Strategy and Development Direction - The company aims to become the preeminent commercial bank in Chicago, focusing on attracting and developing talent, acquiring new customers, deepening relationships, and growing deposits and loans [5][6] - The strategy includes maintaining credit and pricing discipline while investing for long-term growth [6] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's strong position and the trust earned from customers, indicating a bright future ahead [6] - The company is committed to creating long-term value by empowering customers and fostering an innovative culture [9] Other Important Information - In 2024, Byline Bancorp supported local communities with $130 million in community development loans and $103 million in community development investments [9] Q&A Session Summary - There were no questions submitted during the Q&A session, and the meeting was adjourned without any inquiries [25]

Core Viewpoint - Byline Bancorp (BY) has received an upgrade to Zacks Rank 2 (Buy), indicating a positive trend in earnings estimates which is a significant factor influencing stock prices [1][3]. Earnings Estimates and Stock Price Impact - The Zacks rating system is based on changes in a company's earnings outlook, which is closely correlated with stock price movements [4][6]. - Rising earnings estimates for Byline Bancorp suggest an improvement in the company's underlying business, potentially leading to higher stock prices [5][10]. Zacks Rating System - The Zacks Rank system classifies stocks into five groups based on earnings estimates, with a strong historical performance, particularly for Zacks Rank 1 stocks which have averaged a +25% annual return since 1988 [7][9]. - Byline Bancorp's upgrade to Zacks Rank 2 places it in the top 20% of Zacks-covered stocks, indicating a strong potential for market-beating returns in the near term [10]. Earnings Estimate Revisions - For the fiscal year ending December 2025, Byline Bancorp is expected to earn $2.68 per share, reflecting a -2.9% change from the previous year [8]. - Over the past three months, the Zacks Consensus Estimate for Byline Bancorp has increased by 2.8%, indicating positive revisions from analysts [8].

Core Insights - Byline Bancorp, a regional bank based in Chicago, has expanded its fintech banking capabilities through new hires and services, indicating growth in this division [1] Company Developments - The bank's recent announcement highlights its commitment to enhancing its fintech banking operations, which are already experiencing rapid growth [1] Market Context - The financial market is characterized by efficiency, with most stocks reflecting their true value, suggesting that opportunities may exist in less-followed stocks or those mispriced in the market [1]

CHICAGO, May 12, 2025 (GLOBE NEWSWIRE) -- Byline Bank today announced the expansion of its Payments and Fintech Banking division, including several key new hires and leadership appointments, which underscore the bank's significant investment in embedded finance and modern digital payment solutions. Since bringing on industry veterans David Prochnow and Joe Wolsfeld to lead the fintech banking group in March 2024, Byline has taken significant steps in the fintech payments arena. Prior to joining Byline, Proc ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended March 31, 2025 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from ______to ______ Commission File Number 001-38139 Byline Bancorp, Inc. (Exact Name of Registrant as Specified in Its Charter) (State or Other Jurisdiction of Incorporatio ...