Byline Bancorp (BY) Financials

Byline Bancorp’s latest statements show a bank that has expanded meaningfully since 2022 while improving quarterly profitability. As of Q2 2026, total assets reached $9.93 billion, up from $7.13 billion in Q2 2022, while net loans increased to $7.43 billion from $5.11 billion. The company has also grown common equity to $1.30 billion from $765.2 million over the same period.

Q2 2026 was a strong quarter on a year-over-year basis. Total revenue increased 6.6% to $117.7 million, led by a 5.1% gain in net interest income to $100.8 million. Net income rose 33.6% to $40.2 million, while diluted earnings per share increased to $0.90 from $0.68. The comparison benefits from lower credit-loss provisions, but the improvement was also supported by stronger interest income and lower total interest expense than in Q2 2025.

Quarterly trends also show improved earnings momentum. Compared with Q1 2026, Q2 net income increased 6.9% and diluted EPS rose from $0.83 to $0.90. Net interest income increased modestly, while non-interest expense declined to $56.5 million from $57.2 million. However, the provision for credit losses increased sequentially to $7.2 million, indicating that credit costs remain an important item to monitor.

The balance sheet appears generally stable. Net loans grew 0.9% from Q1 2026 and 2.9% from Q2 2025, while total deposits increased 0.9% sequentially and 0.9% year over year. The allowance for loan and lease losses was $111.9 million, equal to approximately 1.5% of gross loans, broadly consistent with the prior year. Total liabilities represented about 86.9% of assets in Q2 2026, an improvement from approximately 89.3% in Q2 2022.

Cash-flow trends are more mixed. Operating cash flow remained positive at $14.2 million in Q2 2026, but declined sharply from $54.6 million in Q1 and $16.3 million in the restated Q2 2025 period. The latest decline primarily reflected a $38.6 million use of cash from changes in operating assets and liabilities. Financing activity was positive overall, although the quarter included substantial debt issuance and repayment that largely offset each other. Investors should also note that several prior-period figures were restated, including Q2 2025 results.

• Improving profitability: Q2 2026 net income rose 33.6% year over year to $40.2 million, and diluted EPS increased to $0.90 from $0.68.
• Positive earnings growth since 2022: Quarterly net income increased from $20.3 million in Q2 2022 to $40.2 million in Q2 2026, while net interest income grew from $61.6 million to $100.8 million.
• Loan and asset expansion: Net loans grew approximately 45% from Q2 2022 to Q2 2026, and total assets increased approximately 39%.
• Improved net interest performance: Net interest income reached $100.8 million in Q2 2026, while total interest expense declined year over year to $43.5 million from $48.6 million.
• Lower credit provisions year over year: The provision for credit losses declined to $7.2 million in Q2 2026 from $11.9 million in the restated Q2 2025 period, providing a meaningful earnings benefit.
• Stronger capital base: Common equity reached $1.30 billion, up from $1.03 billion in Q2 2025 and $765.2 million in Q2 2022. Retained earnings have also increased steadily.
• Deposit growth is modest: Deposits increased slightly from both Q1 2026 and Q2 2025, but growth has been slower than the company’s longer-term loan and asset expansion.
• Liquidity composition has changed: Interest-bearing deposits at other banks declined to $116.4 million from $830.6 million in Q2 2022, while trading account securities increased to $1.65 billion. This may improve asset deployment but changes the bank’s liquidity profile.
• Operating cash flow weakened: Q2 2026 operating cash flow fell to $14.2 million from $54.6 million in Q1, primarily because operating assets and liabilities consumed $38.6 million of cash.
• Credit costs remain a risk: The provision for credit losses increased sequentially from $5.5 million in Q1 2026 to $7.2 million in Q2, while the allowance balance rose to $111.9 million.