Byline Bancorp (BY) investor relations material

Executive summary

• Achieved record net income of $40.2 million and diluted EPS of $0.90 for Q2 2026, with adjusted EPS up 21.3% year-over-year and 9.6% sequentially.

• Total revenue reached $118 million, up 4.7% sequentially, driven by higher net interest and non-interest income.

• Return on average assets was 1.63% and return on tangible common equity was 14.47%; return on average equity was 12.05%.

• Efficiency ratio improved to 46.51%, marking the fourth consecutive quarter of improvement and best since IPO.

• Board declared a 16.7% increase in quarterly dividend to $0.14 per share, payable August 18, 2026.

Financial highlights

• Net interest income was $100.8 million, with net interest margin at 4.28%; non-interest income rose 34.6% to $16.9 million, driven by gains on loan sales and swap fees.

• Non-interest expense declined 1.2% to $56.5 million, with efficiency ratio improving to 46.93%.

• Deposits grew 3.5% to $7.9 billion; loans and leases increased 4.2% to $7.6 billion.

• Allowance for credit losses at 1.48% of loans; net charge-offs were $4.4 million, or 0.24% of average loans.

• Tangible book value per share rose to $24.48, up 2.9% sequentially and 14% year-over-year.

Outlook and guidance

• Expecting full-year loan growth in the mid-single digits, with payoff activity as the main variable.

• Net interest income guidance for Q3 is $100–$102 million; non-interest income expected at $14–$15 million.

• Non-interest expense guidance remains $59–$60 million per quarter for the year.

• Management expects the effective tax rate for 2026 to be 25-27% and liquidity/capital resources to be sufficient for at least twelve months.

• Preparing for crossing the $10 billion asset threshold, with potential to delay until 2027 if advantageous.