BY — Byline Bancorp, Inc.

Byline Bancorp Q1 2026 Earnings Call Summary

1. Key Financial Results and Metrics

• Net Income: $37.6 million, up 8.9% year-over-year.
• Earnings Per Share (EPS): $0.83, a 9.2% increase.
• Return on Assets (ROA): 1.56%.
• Return on Tangible Common Equity (ROTCE): 13.7%.
• Total Revenues: $112.4 million.
• Net Interest Income: $99.9 million, down 1% quarter-over-quarter but up 13% year-over-year.
• Net Interest Margin (NIM): Stable at 4.33%.
• Total Deposits: $7.8 billion, an increase of 8.2% annualized.
• Loan Balances: Slight decline linked quarter, with solid origination activity of $241 million.
• Efficiency Ratio: Improved to 49.8%, one of the lowest since becoming public.
• Credit Quality: Stable, with non-performing loans (NPLs) decreasing to $67 million.

2. Strategic Updates and Business Highlights

• Byline Bank recognized as a top employer, enhancing its ability to attract and retain talent.
• The SBA platform continues to excel, ranking as the #1 SBA 7(a) lender in Illinois.
• Focus on disciplined execution and long-term growth, aiming to become the preeminent commercial bank in Chicago.
• The bank is actively managing its capital, returning 40% of net income to shareholders through buybacks and dividends.

3. Forward Guidance and Outlook

• Loan Growth: Expected in the mid-single digits for the full year, with strong pipelines across various segments.
• Net Interest Income Guidance: Projected range for Q2 is $99 million to $101 million, driven by balance sheet growth and disciplined deposit pricing.
• Noninterest Income: Expected to be in the range of $14 million to $15 million for Q2.
• Expense Management: Full-year guidance remains unchanged at $58 million to $60 million per quarter.

4. Challenges and Points of Concern

• Loan Balances: Slight decline linked quarter due to elevated payoffs, particularly from loan participations and acquired loans.
• Competitive Pressures: Ongoing competition in deposit pricing, particularly in the consumer segment.
• Geopolitical and Economic Uncertainty: Concerns surrounding macroeconomic conditions and geopolitical tensions impacting business sentiment.
• Durbin Amendment Impact: Anticipated decline of approximately 4 basis points to ROA due to the Durbin amendment taking effect in July 2027.

5. Notable Q&A Insights

• Management indicated that the decline in loan balances was largely due to planned runoff from acquired loans, not unexpected market conditions.
• There is optimism regarding M&A activity, although current geopolitical uncertainties may cause some sellers to hesitate.
• The bank is focused on maintaining a strong deposit base and is not artificially managing its balance sheet to stay below $10 billion.
• Future deposit costs are expected to remain stable, with potential for slight decreases due to the repricing of CDs and a focus on relationship banking.

Overall, Byline Bancorp reported a solid quarter with strong profitability metrics, though it faces challenges related to loan growth and competitive pressures in the market. The outlook remains positive, supported by a robust pipeline and disciplined management strategies.