Business
Byline Bancorp, Inc. Reports Second Quarter 2025 Financial Results
CHICAGO, July 24, 2025--Byline Bancorp, Inc. (NYSE: BY), today reported:
About this update from Byline Bancorp, Inc.
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Herencia, Executive Chairman and CEO of Byline Bancorp, commented, "We are pleased with our overall strategic execution for the first half of the year as we successfully completed the acquisition of First Security Bancorp, which we believe has strengthened the return profile of Byline. We believe that our position in the market remains strong and continue to be driven by our objective of becoming the preeminent commercial bank in Chicago."","length":464,"tagName":"p"},{"type":"readMore"},{"type":"text","content":"Alberto J. Paracchini, President of Byline Bancorp, added, "Our performance for the quarter demonstrates the momentum and strength of our long-term strategies and the consistency of our execution. Our adjusted second quarter results were highlighted by solid earnings, strong profitability, net interest margin expansion, healthy growth in loans and deposits, and controlled expenses. Our business units continued to perform well, and we have good momentum heading into the second half of the year."","length":509,"tagName":"p"},{"type":"table","headerItems":[],"items":[{"val":[{"colspan":"1","rowspan":"1","style":"vertical-align:top;text-align:left;","val":[{"type":"text","content":"(1)","length":3,"tagName":"p","attribs":{}}]},{"colspan":"1","rowspan":"1","style":"vertical-align:top;padding-left:5.0px;","val":[{"type":"text","content":"Represents non-GAAP financial measures. See "Reconciliation of non-GAAP Financial Measures" for a reconciliation to the most directly comparable GAAP financial measure.","length":178,"tagName":"p","attribs":{}}]}]},{"val":[{"colspan":"1","rowspan":"1","style":"vertical-align:top;text-align:left;","val":[{"type":"text","content":"(2)","length":3,"tagName":"p","attribs":{}}]},{"colspan":"1","rowspan":"1","style":"vertical-align:top;padding-left:5.0px;","val":[{"type":"text","content":"Annualized.","length":11,"tagName":"p","attribs":{}}]}]}],"length":195},{"type":"text","content":" Board Declares Cash Dividend of $0.10 per Share ","length":47,"tagName":"p"},{"type":"text","content":"On July 22, 2025, the Company's Board of Directors declared a cash dividend of $0.10 per share. The dividend will be paid on August 19, 2025, to stockholders of record of the Company's common stock as of August 5, 2025.","length":227,"tagName":"p"},{"type":"text","content":" STATEMENTS OF OPERATIONS HIGHLIGHTS ","length":35,"tagName":"p"},{"type":"text","content":" Net Interest Income ","length":19,"tagName":"p"},{"type":"text","content":"Net interest income for the second quarter of 2025 was $96.0 million, an increase of $7.8 million, or 8.8%, from the first quarter of 2025. The increase in net interest income was primarily due to higher interest income due to growth in the loan and lease portfolio, primarily due to our acquisition of First Security Bancorp, Inc. and its wholly owned bank subsidiary, First Security Trust and Savings Bank (the "First Security acquisition"), and higher yields on taxable securities, offset by higher interest expense mainly due to deposit growth, primarily due to the First Security acquisition.","length":607,"tagName":"p"},{"type":"text","content":"Tax-equivalent net interest margin (1) for the second quarter of 2025 was 4.19%, an increase of 11 basis points compared to the first quarter of 2025. The increase was primarily due to higher yields on securities and cash and cash equivalents, and lower costs of borrowings. Net loan accretion income positively contributed 13 basis points to the net interest margin for the current quarter, a one basis point increase over the prior quarter.","length":441,"tagName":"p"},{"type":"text","content":"The average cost of total deposits was 2.27% for the second quarter of 2025, a decrease of three basis points compared to the first quarter of 2025, mainly as a result of a shift in the interest-bearing deposit mix and increases in the amount of non-interest bearing deposits, both primarily due to the First Security acquisition.","length":330,"tagName":"p"},{"type":"text","content":" Provision for Credit Losses ","length":27,"tagName":"p"},{"type":"text","content":"The provision for credit losses was $11.9 million for the second quarter of 2025, an increase of $2.7 million compared to $9.2 million for the first quarter of 2025, mainly due to additional allocation on individually assessed loans, growth in the loan and lease portfolio, and weaker macroeconomic forecast.","length":308,"tagName":"p"},{"type":"text","content":" Non-interest Income ","length":19,"tagName":"p"},{"type":"text","content":"Non-interest income for the second quarter of 2025 was $14.5 million, a decrease of $381,000, or 2.6%, compared to $14.9 million for the first quarter of 2025. The decrease in total non-interest income was primarily due to a larger downward revaluation of the loan servicing asset and a lower gain on the change in fair value of equity securities, net. These were offset by higher other non-interest income mainly related to an increase in swap activity, and higher net gains on sales of loans. Net gains on sales of loans were $5.4 million for the current quarter, an increase of $476,000, or 9.7% compared to the prior quarter. During the second quarter of 2025, we sold $73.0 million of U.S. government guaranteed loans compared to $70.2 million during the first quarter of 2025.","length":782,"tagName":"p"},{"type":"text","content":" Non-interest Expense ","length":20,"tagName":"p"},{"type":"text","content":"Non-interest expense for the second quarter of 2025 was $59.6 million, an increase of $3.2 million, or 5.6%, compared to $56.4 million for the first quarter of 2025. The increase in non-interest expense was mainly due to a $1.6 million increase in salaries and employee benefits mainly due to the First Security acquisition and a $1.6 million increase in legal, audit and other professional fees driven by the First Security acquisition and a secondary public offering of shares of our common stock in June 2025.","length":512,"tagName":"p"},{"type":"text","content":"Our efficiency ratio was 52.61% (1) for the second quarter of 2025, compared to 53.66% (1) for the first quarter of 2025, an improvement of 105 basis points. Our adjusted efficiency ratio was 48.20% (1) for the second quarter of 2025, compared to 53.04% (1) for the first quarter of 2025, an improvement of 484 basis points. The improvement in the efficiency ratio was primarily driven by increases in net interest income.","length":418,"tagName":"p"},{"type":"text","content":" Income Taxes ","length":12,"tagName":"p"},{"type":"text","content":"We recorded income tax expense of $8.8 million during the second quarter of 2025, compared to $9.2 million during the first quarter of 2025. The effective tax rates were 22.7% and 24.6% for the second quarter of 2025 and first quarter of 2025, respectively. The decrease in the effective tax rate was due to higher income tax benefits related to share-based compensation recorded in the second quarter.","length":402,"tagName":"p"},{"type":"text","content":" STATEMENTS OF FINANCIAL CONDITION HIGHLIGHTS ","length":44,"tagName":"p"},{"type":"text","content":" Assets ","length":6,"tagName":"p"},{"type":"text","content":"Total assets were $9.7 billion as of June 30, 2025, an increase of $135.5 million, or 1.4%, compared to ...
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