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1. Company Snapshot

1.a. Company Description

Byline Bancorp, Inc.operates as the bank holding company for Byline Bank that provides various banking products and services for small and medium sized businesses, commercial real estate and financial sponsors, and consumers in the United States.It offers various retail deposit products, including non-interest-bearing accounts, money market demand accounts, savings accounts, interest-bearing checking accounts, and time deposits; ATM and debit cards; and online, mobile, and text banking services, as well as commercial deposits.


The company also provides term loans, revolving lines of credit, and construction financing services; senior secured financing solutions to private equity backed lower middle market companies; small business administration and united states department of agriculture loans; and treasury management products and services.In addition, it offers financing solutions for equipment vendors and their end users; and investment, trust, and wealth management services that include fiduciary and executor services, financial planning solutions, investment advisory services, and private banking services for foundations and endowments, and high net worth individuals.It operates through 43 branch locations in the Chicago metropolitan area and one branch in Brookfield, Wisconsin.


The company was formerly known as Metropolitan Bank Group, Inc.and changed its name to Byline Bancorp, Inc.in 2015.


Byline Bancorp, Inc.was founded in 1914 and is headquartered in Chicago, Illinois.

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1.b. Last Insights on BY

Byline Bancorp's recent performance was negatively driven by a decrease in net interest income growth. Despite beating earnings estimates with $0.69 per share, the company's net interest income only increased by 5.3% year-over-year, with a net interest margin of 3.97%. Additionally, the appointment of new General Counsel Brian F. Doran may distract from the company's operational focus, and the lack of share buyback activity may be seen as a missed opportunity to return value to shareholders.

1.c. Company Highlights

2. Byline Bancorp's Strong 4Q 2025 Earnings: A Closer Look

Byline Bancorp reported robust financial performance for the fourth quarter and full year 2025, with net income reaching $34.5 million or $0.76 per diluted share on revenue of $117 million, and $130.1 million or $2.89 per diluted share on revenue of $446 million for the full year. Notably, the actual EPS of $0.83 beat analyst estimates of $0.71. The net interest margin grew to 4.35%, up 8 basis points linked quarter and 25 basis points year-over-year, driven by a decrease in the cost of interest-bearing liabilities. Revenue was up 1.1% from the prior quarter and 12% year-on-year, driven by higher net interest income.

Publication Date: Mar -02

📋 Highlights
  • Strong Full-Year Profitability:: Net income of $130.1M ($2.89/share) with 9.7% revenue growth YoY, driven by 13.5% ROTCE and 13.6% ROA.
  • Record Q4 Net Interest Income:: $101M in Q4, +1.4% QoQ, with NIM rising to 4.35% (+25 bps YoY) due to lower funding costs (-29 bps QoQ in cost of liabilities).
  • Capital Strength & Dividend Growth:: 20% quarterly dividend increase announced, supported by 11.3% TCE capital ratio and $10B asset threshold on track for 2026.
  • Commercial Payments Expansion:: Onboarded 6 fintech/payroll clients, adding $70M in liability balances since April 2025, targeting further deposit and fee growth.
  • Loan Growth Outlook:: Mid-single-digit loan growth expected in 2026, prioritizing commercial lending while real estate lending remains muted due to 2022 rate hikes.

Revenue Growth and Profitability

The company's revenue growth was fueled by a strong performance in net interest income, which reached a record high of $101 million in Q4, up 1.4% from the prior quarter. The pretax pre-provision income was $56.6 million, with a pretax pre-provision ROA of 232 basis points. The company's profitability was strong, with an ROA of 141 basis points and ROTCE of 13%. Analysts estimate next year's revenue growth at 3.0%, indicating a continued upward trajectory.

Loan Growth and Capital Ratios

Byline Bancorp achieved year-on-year loan growth of 8.9%, while deposits grew 2.5%. Capital ratios increased throughout the year, ending with a TCE ratio of 11.3%. The company's focus on organic growth, particularly in its commercial payments business, is expected to drive future growth. The commercial payments team has onboarded 6 customers and added approximately $70 million in liability balances since its launch last April.

Valuation and Dividend Yield

With a Price-to-Tangible Book Value (P/TBV) ratio of 1.1, Byline Bancorp's valuation appears reasonable. The company's dividend yield stands at 1.35%, and the recent 20% increase in the quarterly dividend is a positive development for shareholders. The Net Interest Margin (NIM) of 4.35% is also a key metric for the bank, indicating a strong ability to generate income from its core business.

Outlook and Priorities

Byline Bancorp remains on track to cross the $10 billion asset threshold in 2026, with a focus on organic growth and improving efficiency. The company's priorities include growing its commercial payments business, gaining share in the commercial banking space in Chicago, and maintaining a sustainable dividend. With a strong financial performance and a clear strategy, Byline Bancorp is well-positioned for continued success.

3. NewsRoom

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Critical Review: Byline Bancorp (NYSE:BY) and Harleysville Savings Financial (OTCMKTS:HARL)

Feb -17

Source: defenseworld.net

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New Strong Buy Stocks for February 11th

Feb -11

Source: zacks.com

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Head-To-Head Review: Fidelity D&D Bancorp (NASDAQ:FDBC) versus Byline Bancorp (NYSE:BY)

Feb -10

Source: defenseworld.net

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Byline Bancorp (BY) Upgraded to Strong Buy: Here's What You Should Know

Feb -09

Source: zacks.com

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Earnings Estimates Moving Higher for Byline Bancorp (BY): Time to Buy?

Feb -03

Source: zacks.com

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Best Value Stocks to Buy for January 28th

Jan -28

Source: zacks.com

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Byline Bancorp (NYSE:BY) Shares Gap Down – Time to Sell?

Jan -25

Source: defenseworld.net

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Byline Bancorp Q4 Earnings Call Highlights

Jan -25

Source: defenseworld.net

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (6.00%)

6. Segments

Banking and Related Activities

Expected Growth: 6.0%

Byline Bancorp's 6.0% growth in Banking and Related Activities is driven by strategic expansion into new markets, increased commercial lending, and improved deposit gathering efforts. Additionally, the company's focus on digital transformation and cost savings initiatives have enhanced operational efficiency, contributing to the segment's growth.

7. Detailed Products

Commercial Banking

Provides financial solutions to businesses, including cash management, lending, and treasury management services.

Retail Banking

Offers personal banking services, including checking and savings accounts, credit cards, and personal loans.

Wealth Management

Provides investment and wealth management services, including financial planning, investment management, and trust services.

Mortgage Banking

Offers mortgage lending services, including residential and commercial mortgage loans.

Specialized Lending

Provides specialized lending services, including factoring, asset-based lending, and equipment financing.

8. Byline Bancorp, Inc.'s Porter Forces

Forces Ranking

Threat Of Substitutes

The threat of substitutes for Byline Bancorp, Inc. is medium due to the presence of alternative financial institutions and digital payment platforms.

Bargaining Power Of Customers

The bargaining power of customers for Byline Bancorp, Inc. is low due to the lack of concentration of buyers and the presence of multiple banking options.

Bargaining Power Of Suppliers

The bargaining power of suppliers for Byline Bancorp, Inc. is medium due to the presence of multiple suppliers and the moderate level of dependence on them.

Threat Of New Entrants

The threat of new entrants for Byline Bancorp, Inc. is high due to the relatively low barriers to entry and the presence of fintech companies.

Intensity Of Rivalry

The intensity of rivalry for Byline Bancorp, Inc. is high due to the presence of multiple competitors and the high level of competition in the banking industry.

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 35.43%
Debt Cost 6.68%
Equity Weight 64.57%
Equity Cost 9.55%
WACC 8.54%
Leverage 54.87%

11. Quality Control: Byline Bancorp, Inc. passed 3 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

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Growth: 5.9

Quality: 6.3

Yield: 4.0

Momentum: 7.0

Volatility: 7.3

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Quality: 7.1

Yield: 5.0

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Quality: 5.8

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A-Score: 6.0/10

Value: 6.2

Growth: 7.9

Quality: 7.7

Yield: 2.0

Momentum: 4.0

Volatility: 8.3

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Colony Bankcorp

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Growth: 4.1

Quality: 4.9

Yield: 5.0

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A-Score: 5.1/10

Value: 5.3

Growth: 3.9

Quality: 4.5

Yield: 7.0

Momentum: 4.0

Volatility: 6.0

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Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

31.92$

Current Price

31.92$

Potential

-0.00%

Expected Cash-Flows