Byline Bancorp Inc (BY)
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Byline Bank earns more than ever: net income of $130.1 million in 2025, a net interest margin of 4.22 percent that most regional banks can only dream of, and credit that simply refuses to crack. And yet the return on tangible equity has fallen for the second year running. We read the annual report (10-K) for 2025 and the quarterly report (10-Q) as of March 31, 2026 line by line: the popular story that this bank lives off selling government guaranteed loans does not survive the filings — the truth is both more boring and more interesting. Not investment advice — just a look behind the labels on a shop whose goods you can never see.
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This stock currently matches 3 of our scanner strategies — each hit links to the scanner.
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Basics
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Valuation
Profitability
Balance Sheet & Safety
Growth
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Quality & Screener
AI Rating
ThreatenedDer 10-K 2025 führt einen eigenen, überschriebenen Risikofaktor „AI and our ability to implement and leverage AI to deliver new products and services to our customers present competitive risks“ — KI wird dort konkret als Wettbewerbsrisiko für das eigene Bankmodell benannt: Erfolg und Wettbewerbsfähigkeit hängen laut Filing davon ab, ob Byline die Technologie adaptiert, und ein Versäumnis könne einen „material adverse effect“ haben. Zweiter konkreter Bezug: Der Cyber-Risikofaktor führt die zunehmende Nutzung von KI-Technologien ausdrücklich als Verstärker der bereits gestiegenen Betrugs- und Sicherheitsvorfälle an, die die Bank nach eigener Aussage schon erlebt. Das ist keine Boilerplate-Floskel, sondern ein auf das eigene Geschäftsmodell bezogener Doppelbefund (Wettbewerb + Betrug). Eine KI-Umsatzquelle weisen die Filings nicht aus; operativer KI-Einsatz wird lediglich als Möglichkeit formuliert („We may also implement new technologies, such as those related to artificial intelligence“) und ist damit nicht als „nutzt“ belegbar. Nach der Vorrang-Regel (verkauft > bedroht > nutzt > neutral) daher: bedroht.
View the full file — quotes, sources, reviewed filings
„The financial services industry is experiencing and will continue to experience rapid technological change due to the emergence of AI, including generative AI and agentic AI. The effective use of AI enables financial institutions to better serve their customers and reduce expenses. Our success and competitiveness may depend in part on our ability to adopt such technology and deliver our products and services in a manner consistent with evolving customer preferences and industry standards."
Die Finanzdienstleistungsbranche erlebt und wird weiterhin einen rasanten technologischen Wandel durch das Aufkommen von KI erleben, einschließlich generativer und agentischer KI. Der wirksame Einsatz von KI versetzt Finanzinstitute in die Lage, ihre Kunden besser zu bedienen und Kosten zu senken. Unser Erfolg und unsere Wettbewerbsfähigkeit können teilweise davon abhängen, ob wir diese Technologie übernehmen und unsere Produkte und Dienstleistungen im Einklang mit sich wandelnden Kundenpräferenzen und Branchenstandards anbieten können.
„Failure to adopt AI tools that match our customer expectations and needs or failure to properly manage risks associated with AI could have a material adverse effect on our business, financial condition or results of operation."
Ein Versäumnis, KI-Werkzeuge einzuführen, die den Erwartungen und Bedürfnissen unserer Kunden entsprechen, oder ein Versäumnis, die mit KI verbundenen Risiken angemessen zu steuern, könnte wesentliche nachteilige Auswirkungen auf unser Geschäft, unsere Finanzlage oder unser Betriebsergebnis haben.
„Consistent with industry trends, we have also experienced an increase in attempted electronic fraudulent activity, security breaches, and cybersecurity-related incidents. The continued evolution and increased usage of AI technologies may further increase these risks."
Im Einklang mit den Branchentrends haben auch wir eine Zunahme versuchter elektronischer Betrugsaktivitäten, Sicherheitsverletzungen und Cybersicherheitsvorfälle erlebt. Die fortschreitende Entwicklung und zunehmende Nutzung von KI-Technologien kann diese Risiken weiter erhöhen.
Filings Reviewed: 10-K 2026-02-27 · 10-Q 2026-05-01
Rated on July 16, 2026 · How the Rating Is Built
Quarterly Figures
| Quarter | EPS (Earnings Per Share) | EPS YoY (%) | Sales ($M) | Sales YoY (%) | Net Margin (%) | OCF ($M) | FCF ($M) |
|---|---|---|---|---|---|---|---|
| 2024: Q4 | 0.69 | 0.90 | 154 | 3.40 | 19.60 | 53 | 51 |
| 2025: Q1 | 0.64 | -8.40 | 149 | -2.80 | 19.00 | 27 | 25 |
| 2025: Q2 | 0.68 | 0.10 | 158 | 2.90 | 19.00 | 16 | 15 |
| 2025: Q3 | 0.82 | 18.90 | 163 | 1.60 | 22.90 | 38 | 38 |
| 2025: Q4 | 0.76 | 10.70 | 160 | 3.60 | 21.60 | 59 | 58 |
| 2026: Q1 | 0.83 | 29.70 | 153 | 3.00 | 24.50 | 55 | 54 |
- EPS (Earnings Per Share):
- Quarterly profit divided by the total share count — how much of the profit works out to a single share.
- YoY (Year over Year):
- Change versus the same quarter a year ago — this is how you compare without seasonal distortion (e.g. the holiday shopping season).
- Sales:
- All revenue for the quarter, before any costs are deducted — the top line of the income statement.
- Net Margin:
- What percentage of sales is left over as profit in the end. Negative means the company is posting a loss.
- OCF (Operating Cash Flow):
- The cash that actually flows into the till from the core business during the quarter — harder to dress up than book profit.
- FCF (Free Cash Flow):
- Operating cash flow minus capital expenditures — the money that's genuinely free to use, say for paying down debt, buybacks, or dividends.
Assessment: Opportunities & Risks
A Chicago commercial bank with a genuine specialty: one of the most active SBA/USDA lenders in the U.S. ($533.0 million on balance sheet, $1.6 billion serviced for others), which lifts the loan yield to 7.07 percent and the net interest margin to 4.22 percent — far above the roughly 3 percent regional-bank norm. 86.3 percent of 2025 revenue is recurring net interest income, not one-off gains (annual report 10-K 2025).
Record net income of $130.1 million in 2025 (+7.7 percent), return on assets of 1.36 percent, efficiency ratio of 51.83 percent — and the first quarter of 2026 was better still: $37.6 million (+33 percent), efficiency below 50 percent for the first time (49.78), driven by $11.6 million more net interest income and a $3.6 million lower provision. The much-feared SBA premium dependency is not visible in the fee line: those gains fell 7.4 percent to $22.7 million while profit rose.
Return on average tangible common equity has fallen for two straight years — 16.46 percent (2023), 14.85 percent (2024), 13.47 percent (2025) — and return on equity from 12.50 to 10.86 percent, because the CET1 ratio was pushed from 10.35 to 12.33 percent. The capital is being hoarded for acquisitions that have not yet happened; shareholders carry the cost now. Q1 2026 (ROTCE 13.77 percent) is the first sign of a turn, not yet proof of one.
Credit refuses to crack where it was supposed to: non-performing loans of 0.95 percent, net charge-offs falling to 0.39 percent, reserves at 1.45 percent of loans, CRE office at just 9.2 percent of the CRE book and shrinking (December 31, 2025). Capital is strong (CET1 12.33 percent, tangible common equity 11.29 percent of assets), tangible book value per share grew from $17.98 (2023) to $23.44 (2025).
The best business has a silent partner: the SBA can reclaim losses from "significant technical deficiencies", and the bank keeps no reserves for such claims; Preferred Lender status, program rules and funding caps sit with the federal government. On top: goodwill of $181.9 million (14.3 percent of equity) from five takeovers, free deposits shrinking from 26.56 to 23.78 percent, loans at 98.37 percent of deposits, uninsured deposits of $2.7 billion, one metropolitan market — and $805.9 million of leveraged sponsor-finance loans inside a community bank.
About $1.7 billion of market value — roughly 12 times 2025 earnings, about 1.6 times tangible book value and 9.6 times the 2026 estimate — after a 45 percent twelve-month run that leaves the stock within 0.3 percent of its 52-week high. Six analysts average a $38.60 target, about three percent above the mid-July price: a shrug, not a catalyst. Against that: 4 insider purchases versus 2 sales, and a dividend yield of only about 1.1 percent on a 14.46 percent payout (data as of July 16, 2026).
Byline Bancorp is a well-run bank wearing three very good labels, and all three repay a second look. "Record profit" is true — $130.1 million in 2025, clean credit, a 4.22 percent margin most regional banks cannot reach — but the return on tangible equity behind it has fallen two years running, from 16.46 to 13.47 percent, because capital is being stockpiled for the next takeover. "Government guaranteed" is true and conditional: the SBA can claw back losses from technical deficiencies, and against that the bank holds no reserves. And the market's favorite label, the SBA gain-on-sale story, is simply wrong — those gains are 5.1 percent of revenue and shrinking, while the government's real contribution hides in a 7.07 percent loan yield. At about 1.6 times tangible book, the price says the returns will hold; the filings say they have been falling and only just stopped. Not investment advice.
- BY reached our research list via the Reddit hype scanner (ApeWisdom, 3 mentions in 24 hours, as of July 16, 2026) — the silence is the point: a 45 percent twelve-month run with no forum interest at all.
- Our in-house stock scanner is calibrated for industrial companies and rates a bank poorly by construction: BY appears in exactly 1 of our lists (KCF ranking, price-to-cash-flow 9.9), while the price-to-earnings, price-to-book and debt-to-equity fields return no value for this row. For banks those metrics are noise anyway — deposits are raw material, not debt — which is why the same filters report debt-to-equity of 0.59 for Wintrust and 4.12 for JPMorgan. All bank-specific figures in this analysis come from the SEC filings, not the scanner.
- Price and valuation figures are dated (about $37.48 as of July 15, 2026; market value roughly $1.7 billion, scanner and estimate data as of July 16, 2026); analyses are evergreen, daily prices are not a buy argument.
About the Company
Byline Bancorp, Inc. ist die Bankholding der Byline Bank, die verschiedene Bankprodukte und -dienstleistungen für kleine und mittlere Unternehmen, Gewerbeimmobilien und Finanzsponsoren sowie Privatkunden in den USA anbietet.
| Employees | 1,018 |
|---|---|
| Headquarters | Chicago, IL |
| Website | bylinebancorp.com |
| IPO Date | 30. Jun 2017 |
| Next Earnings | 23. Jul 2026 |
Management
| Name | Title | Birth Year |
|---|---|---|
| Roberto R. Herencia | Executive Chairman of the Board & CEO | 1960 |
| Alberto J. Paracchini | President & Director | 1971 |
| Thomas J. Bell III | Executive VP & CFO | 1966 |
| Brogan M. Ptacin | Executive VP & Head of Commercial Banking | 1961 |
| Thomas Abraham | President of Small Business Capital | 1966 |
| Maria Sherylle A. Olano | Senior VP & Chief Accounting Officer | 1979 |
| Nicolas Mando | Executive VP, Chief Technology & Operations Officer | 1973 |
| Brooks O. Rennie | Head of Investor Relations | 1994 |
| Brian F. Doran Esq. | Executive VP, General Counsel & Corporate Secretary | 1959 |
| Dana Rose | Executive VP & Chief Human Resources Officer | 1971 |
Executives per the latest required filings; titles kept in their original language. Source: fundamental data.
Chart
Interactive price chart (TradingView).
Data as of: July 20, 2026 · Source: fundamental data & SEC filings (annual and quarterly reports, 10-K/10-Q)
Note: pure fact-based analysis, not investment advice and not a solicitation to buy or sell. All figures without guarantee.