Financial Data and Key Metrics Changes - For the full year 2025, net income was $130.1 million, or $2.89 per diluted share, on revenue of $446 million, representing a 9.7% year-over-year increase [13] - The pre-tax pre-provision ROA was 219 basis points, ROA was 136 basis points, and ROTCE was 13.5% [14] - For Q4 2025, net income was $34.5 million, or $0.76 per diluted share, on revenue of $117 million, with revenue up 1.1% from the prior quarter and 12% year-over-year [15] - Tangible book value per share grew by approximately 17% [12] Business Line Data and Key Metrics Changes - Year-on-year loan growth was 8.9%, while deposits grew by 2.5% [14] - In Q4, loans grew by 3% linked quarter, with origination activity consistent at $323 million, primarily from commercial and leasing businesses [15] - Total loans stood at $7.5 billion at year-end, with origination activity up 22% compared to the prior quarter [18] Market Data and Key Metrics Changes - The company is positioned as the largest local community bank and the second largest local commercial bank in Chicago, with significant growth opportunities in the market [6][8] - The Chicago banking market offers substantial opportunities for growth and development, with Byline well-positioned to lead [6] Company Strategy and Development Direction - The company aims to become the preeminent local commercial bank, focusing on organic growth and maintaining a disciplined credit approach [9][24] - A new commercial payments business was launched, with six customers onboarded and additional customers in the pipeline [23] - The company is preparing to cross the $10 billion asset threshold in 2026 while monitoring the regulatory environment closely [23] Management's Comments on Operating Environment and Future Outlook - Management noted that the operating environment has evolved with elevated interest rates and increased macroeconomic uncertainty, but they remained focused on serving customers and executing their strategy [12] - The company expressed optimism about its competitive position and ability to capitalize on opportunities, emphasizing a strong team and operational leverage [24] Other Important Information - The board approved a 20% increase in the quarterly dividend, reflecting confidence in the company's financial performance [5][17] - The company repurchased approximately 346,000 shares and authorized a new repurchase program for up to 5% of outstanding shares [16] Q&A Session Summary Question: Areas of growth and efficiency - Management highlighted excitement around the commercial payments team and the potential for growth in the commercial banking space in Chicago [30][32] Question: Capital return strategy - Management indicated a focus on maintaining flexibility with capital, returning excess capital to shareholders through dividends and share repurchases [33][35] Question: Loan growth outlook - Management expects mid-single-digit loan growth, primarily driven by commercial lending, with real estate growth dependent on transaction activity [44] Question: Net interest income outlook - Management noted that while the first quarter typically sees lower activity, they expect stable to growing net interest income throughout the year [46][48] Question: Credit quality outlook - Management indicated no material changes in credit quality, maintaining a consistent guidance range for net charge-offs [50][98]

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]