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, an increase of 9.2%.
• Return on Assets (ROA): 1.56%.
• Return on Tangible Common Equity (ROTCE): 13.7%.
• Pretax Pre-Provision Income: $55.2 million, with a pretax provision margin of 229 basis points for the 14th consecutive quarter.
• Total Revenues: $112.4 million; net interest income at $99.9 million, down 1% quarter-over-quarter but up 13% year-over-year.
• Net Interest Margin (NIM): Stable at 4.33%.
• Total Deposits: Increased by 8.2% annualized to $7.8 billion.
• Loan Balances: Slight decline linked quarter; origination activity at $241 million.
• Efficiency Ratio: Improved to 49.8%.
• Capital Levels: Tangible Common Equity (TCE) at 11.1%, Common Equity Tier 1 (CET1) at over 12.5%.

2. Strategic Updates and Business Highlights

• Byline Bank recognized as a top employer and for its commitment to diversity and employee well-being.
• Continued strong performance in the SBA platform, ranking as the #1 SBA 7(a) lender in Illinois.
• Focus on disciplined execution and long-term growth, aiming to become the leading commercial bank in Chicago.
• Strong employee engagement and retention strategies highlighted as key to maintaining competitive advantage.

3. Forward Guidance and Outlook

• Loan Growth: Expected in the mid-single digits for the full year, with a solid pipeline across various segments.
• Net Interest Income Guidance: Projected to be in the range of $99 million to $101 million for Q2 2026.
• Noninterest Income: Expected to stabilize at $14 million to $15 million for Q2 2026.
• Expense Management: Full-year guidance for noninterest expenses remains 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.
• Economic Environment: Ongoing geopolitical tensions and macroeconomic uncertainties could impact business operations and decision-making.
• Competitive Pressures: The competitive landscape in Chicago for deposits remains challenging, particularly in consumer banking.
• Durbin Amendment Impact: Anticipated decline in ROA by about 4 basis points starting July 2027, which could affect future profitability.

5. Notable Q&A Insights

• Management indicated that loan production levels were solid, with payoffs primarily related to strategic decisions rather than a decline in demand.
• There is optimism regarding M&A activity, although current market uncertainties may cause some sellers to hesitate.
• The deposit growth strategy includes a focus on relationship banking, with a balanced approach to managing the CD book.
• Management expects to maintain a stable cost of deposits moving forward, with no significant increases anticipated in the competitive landscape.
• The company remains committed to growing its deposit base, with securities portfolio growth contingent on loan growth and market opportunities.

Overall, Byline Bancorp reported a strong start to 2026, with solid financial performance and a focus on strategic growth, despite facing challenges from economic uncertainties and competitive pressures.