Byline Bancorp, Inc.

What they do

Byline Bancorp operates through its subsidiary, Byline Bank, offering a range of banking products and services including commercial and industrial lending, leasing, U.S. government guaranteed loans, real estate loans, and deposit services. The bank also provides small ticket equipment leasing through Byline Financial Group and trust and wealth management services. As of December 31, 2025, it had $9.7 billion in total assets, $7.5 billion in gross loans and leases, and $7.6 billion in deposits.

Revenue drivers

• Commercial lending — Provides commercial and industrial loans and real estate loans to small and medium-sized businesses; commercial deposits made up 43.0% of total deposits and 85.1% of non-interest bearing deposits as of December 31, 2025.
• U.S. government guaranteed loans — Originates SBA 7(a) loans; was the tenth most active SBA 7(a) lender in the U.S. and the most active in Illinois for fiscal year ended September 30, 2025.
• Equipment leasing — Conducted through Byline Financial Group, offering small ticket equipment leasing solutions with sales offices in Illinois and sales representatives in Illinois and New York.
• Consumer and deposit products — Consumer banking services and deposit accounts; non-interest bearing deposits are a significant funding source, with commercial accounts comprising 85.1% of those balances.

Recent performance

For Q2 2026, Byline reported net income of $40.2 million, or $0.90 diluted EPS, up from $37.6 million in Q1 2026 and $30.1 million in Q2 2025. Net interest income was $100.8 million, non-interest income $16.9 million, and pre-tax pre-provision net income $61.2 million. Return on average assets was 1.63% and return on average tangible common equity was 14.47%. Total deposits grew $68.9 million to $7.87 billion and total loans and leases grew $79.0 million to $7.56 billion quarter-over-quarter.

Strategy

The strategy focuses on organic growth in primary and adjacent markets, deepening client relationships, and fostering a cross-sell culture to enhance retention and revenue diversification. Management emphasizes process improvement and productivity enhancements using technology to improve efficiency and customer experience. The company also explores acquisitions; completed the acquisition of First Security Bancorp in April 2025. They aim to be the preeminent commercial bank in Chicago.

Risks

• Credit risk — Borrowers may fail to repay loans, and collateral may not cover losses, potentially requiring increased allowance for credit losses and impacting net income.
• Commercial real estate concentration — Deterioration in commercial real estate conditions in the Chicago metropolitan area and southern Wisconsin could increase credit losses and adversely affect results.
• Interest rate risk — Changes in monetary policy or interest rates could affect net interest margin and demand for loan products, as well as the value of investment securities.
• Cybersecurity and technology risk — Failures or breaches in information technology systems, including those of third-party providers, could lead to financial losses, reputational harm, or regulatory action.

Outlook

Management did not provide specific forward-looking guidance in the excerpts. The company continues to focus on organic growth, efficiency improvements, and potential acquisitions. They highlight ongoing monitoring of economic, geopolitical, and market conditions. Costs related to compliance and growth investments are anticipated. Future performance depends on managing credit quality and economic conditions.