Byline Bancorp, Inc. Reports Second Quarter 2026 Financial Results

About this update from Byline Bancorp, Inc.

Second quarter net income of $40.2 million, $0.90 diluted earnings per share CHICAGO, July 23, 2026 --( BUSINESS WIRE )--Byline Bancorp, Inc. (NYSE: BY), today reported: Board Declares Cash Dividend of $0.14 per Share On July 21, 2026, the Company's Board of Directors declared a cash dividend of $0.14 per share, which represents a 16.7% increase from the previous quarterly dividend of $0.12 per share. The dividend will be paid on August 18, 2026, to stockholders of record of the Company's common stock as of August 4, 2026. STATEMENTS OF OPERATIONS HIGHLIGHTS Net Interest Income Net interest income for the second quarter of 2026 was $100.8 million, an increase of $973,000, or 1.0%, from the first quarter of 2026. The increase in net interest income was primarily due to one additional calendar day, partially offset by higher interest expense related to increased funding costs. Tax-equivalent net interest margin(1) for the second quarter of 2026 was 4.29%, a decrease of five basis points compared to the first quarter of 2026. The decrease primarily reflected modest compression in earning asset yields and higher funding costs. Net loan accretion income contributed 11 basis points to the net interest margin for the quarter. The average cost of total deposits was 1.92% for the second quarter of 2026, a modest increase of one basis point compared to the first quarter of 2026. Provision for Credit Losses The provision for credit losses was $7.2 million for the second quarter of 2026, an increase of $1.6 million, or 29.3%, compared to $5.5 million for the first quarter of 2026, mainly due to additional allocation on individually assessed loans and growth in the loan and lease portfolio. Non-interest Income Non-interest income for the second quarter of 2026 was $16.9 million, an increase of $4.3 million, or 34.6%, compared to $12.5 million for the first quarter of 2026. The increase in total non-interest income was principally driven by four factors: a $1.9 million favorable change in the fair value of equity securities, a $736,000 improvement in the fair value adjustment on loan servicing assets, $627,000 in higher net gains on sales of loans, and higher other non-interest income, primarily reflecting gains on sales of leased assets and swap fee income. Net gains on sales of loans totaled $6.1 million for the quarter, an increase of $627,000, or 11.5%, compared to the prior quarter. During the second quarter of 2026, we sold $78.1 million of U.S. government guaranteed loans compared to $71.8 million during the first quarter of 2026. Non-interest Expense Non-interest expense for the second quarter of 2026 was $56.5 million, a decrease of $710,000, or 1.2%, compared to $57.2 million for the first quarter of 2026. The decrease in non-interest expense was primarily driven by a $673,000 decline in net losses recognized on other real estate owned, a $589,000 decrease in salaries and employee benefits expense, and a $380,000 decrease in occupancy and equipment expense, partially offset by a $496,000 impairment charge related to a closed branch held for sale and higher other non-interest expense. Our efficiency ratio was 46.93%(1), and our adjusted efficiency ratio was 46.51%(1), each compared to 49.78%(1) for the first quarter of 2026, an improvement of 285 basis points and 327 basis points, respectively. The improvement in the efficiency ratio was driven by increased revenue and lower non-interest expense. Income Taxes We recorded income tax expense of $13.9 million during the second quarter of 2026, compared to $12.1 million during the first quarter of 2026. The effective tax rates were 25.7% and 24.4% for the second quarter of 2026 and first quarter of 2026, respectively. This increase was primarily driven by income tax benefits related to share-based compensation recorded in the prior quarter. STATEMENTS OF FINANCIAL CONDITION HIGHLIGHTS Assets Total assets were $9.9 billion as of June 30, 2026, an increase of $22.8 million, or 0.2%, compared to $9.9 billion at March 31, 2026. The increase was primarily driven by a $67.1 million increase to loans and leases held for investment, largely in originated commercial and industrial loans, partially offset by a decrease in securities available-for-sale of $39.4 million, mainly due to principal paydowns. Allowance for Credit Losses The ACL was $111.9 million as of June 30, 2026, an increase of $3.0 million, or 2.7%, from March 31, 2026, mainly due to an increased provision for credit losses on individually assessed loans and lower net charge-offs on loans and leases. Net loan and lease charge-offs during the second quarter of 2026 were $4.4 million, or 0.24% of average loans and leases on an annualized basis, a decrease of $1.5 million and eight basis points, compared to the first quarter of 2026. The decrease was primarily driven by higher recoveries compared to the prior quarter and lower charge-offs on government guaranteed loans. Asset Quality Non-performing assets were $72.2 million, or 0.73% of total assets, as of June 30, 2026, an increase of $2.1 million from March 31, 2026. The increase was primarily due to increased non-accrual loans and leases. The government guaranteed portion of non-performing loans included in non-performing assets was $8.1 million at June 30, 2026, compared to $7.7 million at March 31, 2026, an increase of $399,000. Deposits and Other Liabilities Total deposits increased $68.9 million, or 0.9% to $7.9 billion at June 30, 2026 from $7.8 billion as of March 31, 2026. The increase was primarily driven by growth in interest-bearing deposits. Total borrowings and other liabilities were $757.5 million at June 30, 2026, a decrease of $70.1 million from $827.6 million at March 31, 2026. The decrease for the quarter was primarily driven by lower FHLB advances. Stockholders' Equity Total stockholders' equity was $1.3 billion at June 30, 2026, an increase of $23.9 million, or 1.9%, from March 31, 2026, primarily due to net income of $40.2 million, partially offset by share repurchases, dividends declared, and an increase in accumulated other comprehensive loss related to available-for-sale securities. During the quarter ended June 30, 2026, we repurchased 274,528 shares of our common stock. Conference Call, Webcast and Slide Presentation We will host a conference call and webcast at 9:00 a.m. Central Time on Friday, July 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 (833) 461-5787; Meeting ID: 439 867 942. A slide presentation relating to our second 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 44 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. Forward-Looking Statements This communication contains forward-looking statements within the meaning of the U.S. federal securities laws. Forward-looking statements include, without limitation, statements concerning plans, estimates, calculations, forecasts and projections with respect to the anticipated future performance of the Company. These statements are often, but not always, made through the use of words or phrases such as ''may'', ''might'', ''should'', ''could'', ''predict'', ''potential'', ''believe'', ''expect'', ''continue'', ''will'', ''anticipate'', ''seek'', ''estimate'', ''intend'', ''plan'', ''projection'', ''would'', ''annualized'', "target" and ''outlook'', or the negative version of those words or other comparable words or phrases of a future or forward-looking nature. Forward-looking statements involve estimates and known and unknown risks, and reflect various assumptions and involve elements of subjective judgment and analysis, which may or may not prove to be correct, and which are subject to uncertainties and contingencies outside the control of Byline and its respective affiliates, directors, employees and other representatives, which could cause actual results to differ materially from those presented in this communication. No representations, warranties or guarantees are or will be made by Byline as to the reliability, accuracy or completeness of any forward-looking statements contained in this communication or that such forward-looking statements are or will remain based on reasonable assumptions. You should not place undue reliance on any forward-looking statements contained in this communication. Certain risks and important factors that could affect Byline's future results are identified in our Annual Report on Form 10-K and other reports we file with the Securities and Exchange Commission, including among other things under the heading "Risk Factors" in our Annual Report on Form 10-K for the year ended December 31, 2025. Any forward-looking statement speaks only as of the date on which it is made, and Byline undertakes no obligation to update any forward-looking statement, whether to reflect events or circumstances after the date on which the statement is made, to reflect new information or the occurrence of unanticipated events, or otherwise unless required under the federal securities laws.

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