Byline Bancorp (BY) Q1 2025 earnings summary

Executive summary

• Net income for Q1 2025 was $28.2 million, with diluted EPS of $0.64, down from $30.4 million and $0.70 in Q1 2024, mainly due to higher non-interest expense and credit loss provisions, partially offset by increased net interest income.

• Completed and integrated the First Security Bancorp acquisition on April 1, 2025, adding $313.4 million in assets, $156.7 million in loans, and $279.2 million in deposits; all key integration tasks completed.

• KBRA upgraded credit ratings for both Byline Bancorp and Byline Bank, with a stable outlook, the only bank in the industry to receive an upgrade in the past 12 months.

• Board declared a $0.10 per share dividend, payable May 20, 2025.

• Maintained a disciplined approach to risk management and capital planning, supporting growth and shareholder value.

Financial highlights

• Net interest income was $88.2 million, up 3.1% year-over-year and flat sequentially; total revenue $103.1 million, up 2% year-over-year.

• Net interest margin expanded to 4.07% from 4.00% year-over-year and up 6 basis points quarter-over-quarter.

• Non-interest income was $14.9 million, down 8.0% sequentially and 3.9% year-over-year, mainly due to lower gains on loan sales.

• Non-interest expense was $56.4 million, up 4.9% year-over-year but down 1.7% sequentially, mainly due to higher salaries, incentive compensation, and merger-related costs.

• Loans and leases reached $7.0 billion, up 8% annualized from the prior quarter; deposits $7.6 billion, up 5.1% annualized.

Outlook and guidance

• Expect mid-single digit loan growth for the year, supported by healthy pipelines and active client engagement.

• Net interest income guidance for Q2 (excluding First Security) is $87–$89 million, assuming a 100 basis point Fed funds decline in 2025.

• Non-interest expense guidance remains $55–$57 million per quarter, not including First Security.

• SBA gain on sale guidance remains at $5 million per quarter.

• Effective tax rate for 2025 expected to be approximately 25-27%.