Byline Bancorp (BY) Q3 2026 earnings summary

Executive summary

• Record Q3 revenue of $121.0 million and net income of $41.8 million; diluted EPS was $0.94.

• Record net interest income was $103.7 million, NIM widened to 4.33%, and deposits grew to $8.04 billion; total assets were $9.9 billion.

• Announced an acquisition of Illinois State Bancorp and returned capital through a 16.7% dividend increase and $20.4 million in share repurchases.

Financial highlights

• Q3 net income was $41.786 million, or $0.94 per diluted share, versus $40.2 million in Q2 and $37.2 million a year earlier; nine-month net income rose 25.1% to $119.5 million.

• Revenue was $121.0 million, up 2.8% QoQ and 4.6% YoY; net interest income was $103.676 million, up 2.8% QoQ and 3.8% YoY.

• Non-interest income was $17.332 million, up 2.7% QoQ, supported by wealth management and trust income and customer swap income.

• Non-interest expense was $59.800 million, up 5.9% QoQ, mainly due to $3.4 million in higher salaries and benefits, primarily incentive compensation.

• Provision for credit losses was $6.748 million; lower deposit costs contributed to reduced interest expense and higher net interest income.

Outlook and guidance

• Q4 loan balances are expected to remain flat as originations and payoffs offset; mid-single-digit loan growth remains the 2027 expectation, excluding M&A.

• Q4 guidance: net interest income of $103 million–$105 million, non-interest income of $14 million–$15 million including $5.5 million in gain-on-sale revenue, and non-interest expense of $62 million–$64 million.

• Full-year efficiency ratio is expected at or below 50%; costs are expected to decline in Q1 2027, and the 2027 effective tax rate is estimated near 25.5%.

• Illinois State Bancorp acquisition is expected to close in Q1 2027, subject to approvals and other closing conditions; the asset threshold of $10 billion is expected to be crossed in 2027.

• A +100 bps rate shock is modeled to increase 12-month NII by 4.4%; a +100 bps ramp is modeled to increase it by 2.2%.