AI Analysis | Feedback

Here are 1-3 brief analogies to describe Byline Bancorp:

• The Chicago-area community bank equivalent of a larger national bank like Bank of America.
• Think of it as a local, smaller-scale Chase Bank focused on the Chicago metropolitan market.
• A neighborhood bank for the Chicago area, much like a scaled-down version of a nationwide institution such as Wells Fargo.

AI Analysis | Feedback

• Deposit Accounts: Provides various checking, savings, money market, and certificate of deposit accounts for individuals and businesses to store and manage their funds.
• Commercial Lending: Offers a range of commercial loans, including real estate, asset-based, equipment, and government-guaranteed (SBA) loans, to businesses of various sizes.
• Consumer Lending: Supplies individuals with mortgage loans, home equity lines of credit, and other personal loans to finance major purchases or consolidate debt.
• Treasury Management Services: Delivers comprehensive treasury management solutions, such as remote deposit, wire transfers, and automated clearing house (ACH) services, to help businesses optimize their cash flow and financial operations.

AI Analysis | Feedback

Major Customers of Byline Bancorp (BY)

Byline Bancorp (symbol: BY), through its subsidiary Byline Bank, primarily serves a diverse range of small to medium-sized businesses and individuals. Due to the nature of banking, it does not have a few "major customers" in the sense of large, identifiable corporate clients that can be listed with symbols. Instead, its customer base is best described by the following categories:

• Small and Medium-Sized Businesses (SMBs): Byline Bank provides comprehensive commercial banking services to privately held companies, primarily located in the Chicago metropolitan area and surrounding regions. These services include commercial real estate loans, equipment financing, lines of credit, treasury management, and traditional business loans across various industries.
• Individuals and Households: The bank serves individual customers and families with a full suite of retail banking products and services. These include checking accounts, savings accounts, money market accounts, certificates of deposit, residential mortgages, home equity lines of credit, and other personal lending products.
• Businesses Utilizing SBA Programs: Byline Bank is a prominent national Small Business Administration (SBA) lender. It specializes in providing government-guaranteed loans (such as SBA 7(a) and 504 loans) to qualifying small businesses for a variety of purposes, including real estate acquisition, business expansion, working capital, and debt refinancing. This represents a significant and specialized segment of their business clientele.

AI Analysis | Feedback

• nCino, Inc. (NCNO)
• Q2 Holdings, Inc. (QTWO)
• Visa Inc. (V)
• Mastercard Incorporated (MA)
• Crowe LLP

AI Analysis | Feedback

Roberto R. Herencia, Chief Executive Officer and Chairman of the Board of Directors

Mr. Herencia has served as Chief Executive Officer of Byline Bancorp since February 2021 and Chairman since June 2013. He is also the President and Chief Executive Officer of BXM Holdings, Inc., an investment fund specializing in community bank investments, since 2010, where he led the recapitalization of Byline's predecessor, Metropolitan Bank Group. Prior to BXM Holdings, Inc., Mr. Herencia was President and Chief Executive Officer of Midwest Banc Holdings, Inc., and spent 17 years with Popular Inc., including serving as President and CEO of its subsidiary, Banco Popular North America. He has also served as an independent director of Banner Corporation and as Chairman of the board of directors of First BanCorp.

Thomas J. Bell III, Executive Vice President, Chief Financial Officer and Treasurer

Mr. Bell became Chief Financial Officer of Byline Bancorp in August 2022, after serving as the bank's Treasurer for nine years. He brings over 30 years of experience in the banking industry, having previously served as Senior Vice President, Treasurer and Head of Planning for Anchor Bancorp. Before that, he was an Executive Vice President, Treasurer and Chief Investment Officer for Midwest Bancorp and a Senior Vice President with ABN AMRO North America Inc. Mr. Bell began his career at the Federal Reserve Bank of Chicago.

Alberto J. Paracchini, President and Director

Mr. Paracchini has served as President and Director for Byline Bancorp, Inc. and President, CEO and Director of Byline Bank since June 2013. He was a Principal at BXM Holdings, Inc., an investment fund specializing in community bank investments, from 2010 to 2013. Mr. Paracchini spent 16 years at Popular, Inc., holding various leadership positions including President and CFO of Popular Financial Holdings and CFO of E-Loan. He also served as Executive Vice President at Midwest Bank & Trust.

Brian F. Doran, Executive Vice President, General Counsel

Mr. Doran joined Byline in January 2025 as Executive Vice President and General Counsel. From 2023 to 2024, he was Executive Vice President, General Counsel of Republic First Bank, assisting in the bank's orderly closing and asset transition to Fulton Bank. Previously, Mr. Doran held the roles of Executive Vice President, General Counsel and Corporate Secretary, and Chief Administrative Officer at Investors Bancorp, Inc.

Brogan Ptacin, Executive Vice President, Head of Commercial Banking

Mr. Ptacin has been an Executive Vice President, Head of Commercial Banking for Byline Bank since January 2019. Before joining Byline, he was a Managing Director of First Bank & Trust from 2009 until its acquisition by Byline in 2018. His prior experience includes serving as Executive Vice President of Midwest Bank & Trust, Executive Vice President of Royal American Bank, and Senior Vice President of American National Bank & Trust.

AI Analysis | Feedback

The key risks to Byline Bancorp's business include deteriorating credit quality, significant exposure to the Chicago-area economy, and increased regulatory scrutiny as the company's assets grow.

1. Credit Quality and Loan Portfolio Deterioration: Byline Bancorp has experienced an increase in net charge-offs, allowance for credit losses, and non-performing loan ratios. In the quarter ending June 30, 2025, criticized and classified loans and leases rose by 80 basis points to 4.5%. The bank's loss allowance to total loan portfolio ratio, at 1.47%, exceeds the stated FDIC national average by 15 basis points. A primary driver of these changes is a portfolio of Purchased Credit Deteriorated (PCD) loans acquired through the purchase of First Security Bancorp.
2. Dependence on the Chicago Economy: Byline Bank is heavily reliant on the economic activity within the city of Chicago. The city's economy is showing signs of challenges, including sluggish labor and wage growth, which impacts consumer disposable income. Additionally, Chicago faces a significant budget deficit that could lead to tax increases, further restricting resident spending.
3. Increased Regulatory Oversight: Byline Bancorp is anticipated to surpass $10 billion in total assets during the third quarter of 2025. Reaching this threshold will subject the bank to a more intricate regulatory framework, involving heightened oversight, new governance obligations, and more stringent compliance demands. Specifically, the Consumer Financial Protection Bureau (CFPB) will become the primary regulator for consumer compliance supervision.

AI Analysis | Feedback

Increased competition from financial technology (fintech) companies and digital-first banks offering more agile, often lower-cost, and more convenient specialized financial products and services. This trend poses a threat by potentially eroding Byline Bancorp's market share and profitability, particularly in segments like small business lending, which is a significant focus for Byline, and consumer digital banking.

AI Analysis | Feedback

Byline Bancorp (symbol: BY) operates primarily in the Chicago and Milwaukee metropolitan areas, within the Midwest region of the United States. The addressable markets for its main products and services are sized as follows within the U.S. region:

• Commercial Banking: The U.S. commercial banking market is estimated at USD 226.44 billion in 2024 and is projected to reach USD 269.28 billion by 2029. Another estimate places the U.S. commercial banking market size at USD 732.5 billion in 2025, expected to grow to USD 915.45 billion by 2030.
  • Commercial Loans: The U.S. commercial lending market was estimated at USD 2,987.59 billion in 2024, with projections to reach USD 8,248.51 billion by 2035.
  • Treasury Management Services: The North American treasury management market, which the U.S. dominates, was valued at USD 6.0 billion in 2023 and is expected to grow to USD 10.8 billion by 2032. Globally, the treasury management market is estimated to be valued at USD 6.6 billion in 2025, and is expected to reach USD 16.31 billion by 2032.
• Small Business Administration (SBA) Lending: The U.S. small business loan market was valued at approximately USD 245.39 billion in 2023 and is projected to reach USD 349.64 billion by 2033. The broader small business lending market, which includes various forms of credit, had an estimated total value of USD 1.4 trillion in 2022. In 2024, the SBA approved over 70,000 loans totaling USD 31.1 billion.
• Retail Banking: The United States retail banking market is valued at USD 0.87 trillion in 2025 and is forecasted to grow to USD 1.08 trillion by 2030. Another assessment indicates the U.S. retail banking market size was USD 1,105 billion in 2024, with a projection to reach USD 1,850 billion by 2032.
  • Deposit Products: Total U.S. deposits were reported at USD 17,922.903 billion in February 2025. Retail and small business deposits across all U.S. branches increased by USD 46 million from June 30, 2023, to June 30, 2024.
  • Consumer Loans: The global consumer lending market, with North America holding a 35% market share, was valued at USD 1,240.43 billion in 2025 and is projected to reach USD 2,157.11 billion by 2035. Total U.S. consumer debt was USD 16.99 trillion as of April 2023.
• Wealth Management: The Assets Under Management (AUM) in the U.S. wealth management market are predicted to reach USD 67.75 trillion by 2024 and are expected to expand to USD 91.16 trillion by 2028. The United States holds 54.2% of the global AUM, which reached USD 162 trillion in 2025.
• Small Ticket Equipment Leasing: The overall equipment leasing and finance industry in the U.S. is a substantial market, estimated at over USD 1.3 trillion. In 2023, approximately 57% of the USD 2.3 trillion invested by U.S. businesses, nonprofits, and government agencies in equipment and software, amounting to USD 1.34 trillion, was financed through various instruments including leases and loans.

AI Analysis | Feedback

Byline Bancorp (BY) is expected to drive future revenue growth over the next 2-3 years through several key strategies:

1. Loan Portfolio Expansion: Byline Bancorp has demonstrated consistent loan growth, with its portfolio increasing to $7.5 billion in Q3 2025, marking a 5.8% year-over-year increase from Q3 2024. The bank anticipates continued mid-single-digit loan growth in Q4. This growth is diversified across commercial and industrial (C&I) loans (40%), owner-occupied commercial real estate (20%), and non-owner occupied commercial real estate (14%). As a prominent Small Business Administration (SBA) lender, Byline Bancorp generates immediate gain-on-sale income and recurring revenue from servicing rights by selling the government-guaranteed portion of SBA loans.
2. Growth in Low-Cost Core Deposits: A strategic priority for Byline Bancorp is to increase its low-cost core deposits. In Q3 2025, total deposits rose to $7.8 billion, a 1% linked-quarter increase, and an 8.2% annualized increase from Q2 2024. This growth is primarily fueled by commercial money market accounts and consumer time deposits. Expanding the deposit base helps enhance net interest income and overall financial stability.
3. Launch and Scaling of New Commercial Payments Business: Byline Bancorp recently launched a new commercial payments business specifically targeting high-volume ACH transactions and payroll processors. This new service offering is anticipated to scale significantly in 2026, contributing to future non-interest income and diversifying revenue streams.
4. Strategic Acquisitions and Industry Consolidation: Management has indicated an openness to disciplined mergers and acquisitions (M&A) that align with its strategic goals, possessing the capital flexibility to act opportunistically. The company sees potential for growth through industry consolidation affecting community banks and has a track record of successful integrations, such as First Security, which expanded its lending and deposit base and improved operational efficiency.
5. Enhanced Operational Efficiency and Digital Banking Upgrades: Byline Bancorp is actively pursuing efforts to enhance operational efficiency, as evidenced by a strong efficiency ratio of 51% in Q3 2025. Furthermore, the company's continuous investment in digital banking upgrades, including a major online banking systems update, is expected to attract and retain tech-savvy customers. These digital advancements are projected to drive future deposit growth and increase fee income by improving service delivery and customer engagement.

AI Analysis | Feedback

Share Repurchases

• Byline Bancorp's Board of Directors approved a new stock repurchase program on December 5, 2024, authorizing the repurchase of up to 1.25 million shares of its outstanding common stock. This program is effective from January 1, 2025, to December 31, 2025.
• The company purchased $10.0 million of its common stock as part of a secondary offering in June 2025, utilizing its existing share repurchase program authorized on January 1, 2025.
• In 2021, Byline Bancorp repurchased a total of 1,331,708 shares of its common stock. The company did not repurchase any shares during the first nine months of 2024.

Share Issuance

• In April 2025, Byline Bancorp issued approximately 1.6 million shares to complete the acquisition of First Security Bancorp. The secondary public offering of 4,282,210 shares in June 2025 was by selling stockholders, and Byline Bancorp did not offer or sell any shares nor receive any proceeds from this offering.

Outbound Investments

• Byline Bancorp completed the acquisition of First Security Bancorp in April 2025, a transaction valued at approximately $41.5 million. As a result of this merger, First Security Bancorp merged with and into Byline Bank.

Capital Expenditures

• Byline Bancorp has focused on strategic investments in new business lines, including building out its commercial payments business, which is expected to be a key growth area for 2026 and beyond.
• The company has continuously invested in digital banking upgrades, including the completion of a major online banking systems update, to enhance customer experience and drive future deposit growth.