First quarter net income of $37.6 million, $0.83 diluted earnings per share
Byline Bancorp, Inc. (NYSE: BY), today reported:
| At or for the quarter | First Quarter Highlights(compared to 4Q25 unless specified) | ||||||||||||||
| 1Q26 | 4Q25 | 1Q25 | |||||||||||||
| Financial Results ($ in thousands) | • Solid growth: net income up 8.9% and EPS up 9.1% | ||||||||||||||
| Net interest income (NII) | $ | 99,863 | $ | 101,255 | $ | 88,221 | |||||||||
| Non-interest income | 12,538 | 15,750 | 14,859 | • ROAA of 1.56%; ROTCE(1) of 13.77% | |||||||||||
| Total revenue(1) | 112,401 | 117,005 | 103,080 | ||||||||||||
| Non-interest expense (NIE) | 57,189 | 60,369 | 56,429 | • PTPP ROAA of 2.29%(1), 14th consecutive | |||||||||||
| Pre-tax pre-provision net income (PTPP)(1) | 55,212 | 56,636 | 46,651 | quarter greater than 2.00% | |||||||||||
| Provision for credit losses | 5,537 | 9,702 | 9,179 | ||||||||||||
| Provision for income taxes | 12,096 | 12,413 | 9,224 | • TBV per common share of $23.79(1), up 1.5% | |||||||||||
| Net income | $ | 37,579 | $ | 34,521 | $ | 28,248 | |||||||||
| • KBRA affirmed BBB+ credit ratings and Outlook | |||||||||||||||
| Per Share | |||||||||||||||
| Diluted earnings per share (EPS) | $ | 0.83 | $ | 0.76 | $ | 0.64 | Income Statement | ||||||||
| Dividends declared per common share | 0.12 | 0.10 | 0.10 | • Net interest income of $99.9 million, down 1.4% | |||||||||||
| Book value per common share | 28.17 | 27.84 | 25.32 | ||||||||||||
| Tangible book value per common share(1) | 23.79 | 23.44 | 20.91 | • NIM held steady at 4.33% | |||||||||||
| Balance Sheet & Credit Quality ($ in thousands) | • Non-interest expense of $57.2 million, a | ||||||||||||||
| Total deposits | $ | 7,801,816 | $ | 7,647,443 | $ | 7,553,308 | decrease of $3.2 million, or 5.3% | ||||||||
| Total loans and leases | 7,484,958 | 7,522,990 | 7,047,170 | ||||||||||||
| Net charge-offs | 5,950 | 6,707 | 6,644 | • Efficiency ratio(1) improved 54 bps to 49.78% | |||||||||||
| Allowance for credit losses (ACL) | 108,879 | 108,834 | 100,420 | ||||||||||||
| ACL to total loans and leases held for investment | 1.46 | % | 1.45 | % | 1.43 | % | Balance Sheet | ||||||||
| • Total assets stood at $9.9 billion, up 2.7% | |||||||||||||||
| Select Ratios (annualized where applicable) | |||||||||||||||
| Efficiency ratio(1) | 49.78 | % | 50.32 | % | 53.66 | % | • Total deposits grew $154.4 million, or 8.2%(2) | ||||||||
| Return on average assets (ROAA) | 1.56 | % | 1.41 | % | 1.25 | % | |||||||||
| Return on average stockholders’ equity | 11.43 | % | 10.61 | % | 10.32 | % | • Non-performing loans decreased $4.0 million, | ||||||||
| Return on average tangible common equity(1) | 13.77 | % | 12.97 | % | 12.92 | % | or 5.6% | ||||||||
| Net interest margin (NIM) | 4.33 | % | 4.35 | % | 4.07 | % | |||||||||
| Common equity to total assets | 12.92 | % | 13.14 | % | 11.80 | % | • CET 1 of 12.55%, up 22 bps | ||||||||
| Tangible common equity to tangible assets(1) | 11.13 | % | 11.29 | % | 9.95 | % | |||||||||
| Common equity tier 1 | 12.55 | % | 12.33 | % | 11.78 | % | • Total payout ratio(3): 40.4% | ||||||||
CEO/President Commentary
Roberto R. Herencia, Executive Chairman and CEO of Byline Bancorp, commented, “We had a solid start to 2026, delivering balanced and resilient performance amid heightened market volatility. During the quarter, we continued to return capital to our stockholders, repurchasing nearly $10 million of common stock and increasing our quarterly dividend by 20% to $0.12 per share. We remain focused on driving value for our stockholders as we work toward becoming the preeminent commercial bank in Chicago.”
Alberto J. Paracchini, President of Byline Bancorp, added, “First quarter results reflected steady earnings and profitability, a stable net interest margin, and well-controlled expenses. As we navigate an evolving geopolitical and macroeconomic environment, we remain focused on executing our strategy, supported by our strong risk management practices and well‑managed balance sheet. I want to thank our employees for their dedication to serving our customers and communities.”
| (1) Represents non-GAAP financial measures. See “Reconciliation of non-GAAP Financial Measures” for a reconciliation to the most directly comparable GAAP financial measure. |
| (2) Annualized. |
| (3) Total payout ratio is inclusive of dividends and share repurchases. |
Board Declares Cash Dividend of $0.12 per Share
On April 21, 2026, the Company’s Board of Directors declared a cash dividend of $0.12 per share. The dividend will be paid on May 19, 2026, to stockholders of record of the Company’s common stock as of May 5, 2026.
STATEMENTS OF OPERATIONS HIGHLIGHTS
Net Interest Income
Net interest income for the first quarter of 2026 was $99.9 million, a decrease of $1.4 million, or 1.4%, from the fourth quarter of 2025. The decrease in net interest income was primarily due to two less calendar days and lower interest income due to declining loan yields, offset by lower interest expense mainly due to lower rates paid on interest-bearing deposits.
Tax-equivalent net interest margin(1) for the first quarter of 2026 was 4.34%, a decrease of two basis points compared to the fourth quarter of 2025. The decrease was primarily due lower yields on loans and higher rates on other borrowings, offset by lower rates paid on deposits and higher yields on taxable securities. Net loan accretion income contributed nine basis points to the net interest margin for the quarter.
The average cost of total deposits was 1.91% for the first quarter of 2026, a decrease of six basis points compared to the fourth quarter of 2025, mainly as a result of lower rates paid on money market accounts and time deposits.
Provision for Credit Losses
The provision for credit losses was $5.5 million for the first quarter of 2026, a decrease of $4.2 million compared to $9.7 million for the fourth quarter of 2025, mainly due to a decrease in loss allocation for collectively assessed loans and leases reflecting lower criticized loans and a slightly improved economic forecast, and a decrease in the loan and lease portfolio, partially offset by additional loss allocations on individually assessed loans.
Non-interest Income
Non-interest income for the first quarter of 2026 was $12.5 million, a decrease of $3.2 million, or 20.4%, compared to $15.8 million for the fourth quarter of 2025. The decrease in total non-interest income was primarily due to a decline in the fair value of equity securities, net, due to macroeconomic conditions and lower other non-interest income due to losses on the sales of leased assets. Income from fees and service charges on deposits increased by 4.3% to $2.9 million for the quarter.
Net gains on sales of loans totaled $5.5 million for the quarter, an increase of $82,000, or 1.5%, compared to the prior quarter. During the first quarter of 2026, we sold $71.8 million of U.S. government guaranteed loans compared to $78.9 million during the fourth quarter of 2025.
Non-interest Expense
Non-interest expense for the first quarter of 2026 was $57.2 million, a decrease of $3.2 million, or 5.3%, compared to $60.4 million for the fourth quarter of 2025. The decrease in non-interest expense was mainly due to a $2.6 million decrease in salaries and employee benefits mainly from lower incentive compensation, an $844,000 decrease in legal, audit, and other professional fees, and a $784,000 decrease in other non-interest expenses due to lower marketing expenses. These decreases were offset by an increase in data processing of $540,000.
Our efficiency ratio was 49.78%(1) for the first quarter of 2026, compared to 50.32%(1) for the fourth quarter of 2025, an improvement of 54 basis points. The improvement in the efficiency ratio was mainly driven by lower non-interest expenses.
Income Taxes
We recorded income tax expense of $12.1 million during the first quarter of 2026, compared to $12.4 million during the fourth quarter of 2025. The effective tax rates were 24.4% and 26.4% for the first quarter of 2026 and fourth quarter of 2025, respectively. This decrease was primarily driven by higher income tax benefits related to share-based compensation recorded in the current quarter.
| (1) Represents non-GAAP financial measures. See “Reconciliation of non-GAAP Financial Measures” for a reconciliation of our non-GAAP measures to the most directly comparable GAAP financial measure. |
STATEMENTS OF FINANCIAL CONDITION HIGHLIGHTS
Assets
Total assets were $9.9 billion as of March 31, 2026, an increase of $257.0 million, or 2.7%, compared to $9.7 billion at December 31, 2025.
The increase for the current quarter was mainly due an increase in securities of $251.1 million due to purchases of mortgage-backed securities and an increase in cash and cash equivalents of $49.3 million due to higher FHLB advances, offset by a decrease to loans and leases held for investment of $34.1 million.
Allowance for Credit Losses
The ACL was $108.9 million as of March 31, 2026, flat from December 31, 2025, mainly due to lower net charge-offs offset by lower provision for credit losses.
Net loan and lease charge-offs during the first quarter of 2026 were $6.0 million, or 0.32% of average loans and leases, on an annualized basis, a decrease of $757,000 compared to net charge-offs of $6.7 million, or 0.36% of average loans and leases, during the prior quarter. The decrease in net charge-offs for the quarter was due to lower charge-offs in the conventional portfolio.
Asset Quality
Non-performing assets were $70.2 million, or 0.71% of total assets, as of March 31, 2026, a decrease of $4.5 million from $74.7 million, or 0.77% of total assets, at December 31, 2025. The decrease was primarily in non-accrual conventional loans due to active resolutions. The government guaranteed portion of non-performing loans included in non-performing assets was $7.7 million at March 31, 2026, compared to $9.7 million at December 31, 2025, a decrease of $2.0 million.
Deposits and Other Liabilities
Total deposits increased $154.4 million, or 2.0% to $7.8 billion at March 31, 2026 from $7.6 billion as of December 31, 2025. The increase in deposits during the quarter was mainly due to increases in time deposits and interest-bearing business checking accounts, both principally driven by an increase in brokered deposits.
Total borrowings and other liabilities were $827.6 million at March 31, 2026, an increase of $90.2 million from $737.3 million at December 31, 2025. The increase for the quarter was primarily driven by increases in FHLB advances.
Stockholders’ Equity
Total stockholders’ equity was $1.3 billion at March 31, 2026, an increase of $12.4 million, or 1.0%, from December 31, 2025, primarily due to increased retained earnings from net income.
During the quarter ended March 31, 2026, we repurchased 318,208 shares of our common stock.
| (1) Represents non-GAAP financial measures. See “Reconciliation of non-GAAP Financial Measures” for a reconciliation of our non-GAAP measures to the most directly comparable GAAP financial measure. |
Conference Call, Webcast and Slide Presentation
We will host a conference call and webcast at 9:00 a.m. Central Time on Friday, April 24, 2026, to discuss our quarterly financial results. Analysts and investors may participate in the question-and-answer session. The call can be accessed via telephone at (800) 715-9871; passcode 5666320. A recorded replay can be accessed through May 8, 2026, by dialing (800) 770-2030; passcode: 5666320 followed by # key.
A slide presentation relating to our first quarter 2026 results will be accessible prior to the conference call. The slide presentation and webcast of the conference call can be accessed on our investor relations website at www.bylinebancorp.com.
About Byline Bancorp, Inc.
Headquartered in Chicago, Byline Bancorp, Inc. is the parent company of Byline Bank, a full service commercial bank serving small- and medium-sized businesses, financial sponsors, and consumers. Byline Bank has approximately $9.9 billion in assets and operates 45 branch locations throughout the Chicago and Milwaukee metropolitan areas. Byline Bank offers a broad range of commercial and community banking products and services including small ticket equipment leasing solutions and is one of the top Small Business Administration lenders in the United States.
