Byline Bancorp, Inc. (BY) | Investment Case

1. Company Snapshot

1.a. Company Description

Byline Bancorp, Inc.operates as the bank holding company for Byline Bank that provides various banking products and services for small and medium sized businesses, commercial real estate and financial sponsors, and consumers in the United States.It offers various retail deposit products, including non-interest-bearing accounts, money market demand accounts, savings accounts, interest-bearing checking accounts, and time deposits; ATM and debit cards; and online, mobile, and text banking services, as well as commercial deposits.

The company also provides term loans, revolving lines of credit, and construction financing services; senior secured financing solutions to private equity backed lower middle market companies; small business administration and united states department of agriculture loans; and treasury management products and services.In addition, it offers financing solutions for equipment vendors and their end users; and investment, trust, and wealth management services that include fiduciary and executor services, financial planning solutions, investment advisory services, and private banking services for foundations and endowments, and high net worth individuals.It operates through 43 branch locations in the Chicago metropolitan area and one branch in Brookfield, Wisconsin.

The company was formerly known as Metropolitan Bank Group, Inc.and changed its name to Byline Bancorp, Inc.in 2015.

Byline Bancorp, Inc.was founded in 1914 and is headquartered in Chicago, Illinois.

Show Full description

1.b. Last Insights on BY

Byline Bancorp's recent performance was negatively driven by a decrease in net interest income growth. Despite beating earnings estimates with $0.69 per share, the company's net interest income only increased by 5.3% year-over-year, with a net interest margin of 3.97%. Additionally, the appointment of new General Counsel Brian F. Doran may distract from the company's operational focus, and the lack of share buyback activity may be seen as a missed opportunity to return value to shareholders.

1.c. Company Highlights

Last Price	29.19
Change Percentage	-0.03%
Open	29.3
Previous Close	29.2
Market Cap ( Millions)	1337
Volume	144168
Year High	32.05
Year Low	22.63
M A 50	27.39
M A 200	26.98

FCF Yield	3.80%
Dividend Yield	1.37%
ROE	10.82%
Debt / Equity	46.99%
Net Debt / EBIDTA	17.67%
Price To Book	1.07
Price Earnings Ratio	10.52
Price To FCF	26.34
Price To sales	2.9
EV / EBITDA	0.64

2. Byline Bancorp's Strong Q3 2025 Earnings: A Closer Look

Byline Bancorp reported a robust financial performance in Q3 2025, with net income reaching $37 million or $0.83 per diluted share, surpassing analyst estimates of $0.71. Revenue stood at $116 million, driven by a solid execution, with both revenue and EPS growing quarter-over-quarter and 13.6% and 19% year-over-year, respectively. The net interest margin expanded nine basis points to 4.27%, supported by an improved deposit mix and higher asset yields.

Publication Date: Nov -04

                                    📋 Highlights
                                    Strong Net Income and EPS Growth::
                                                Net income reached $37 million ($0.82 per diluted share) on $116 million revenue, with 13.6% YoY revenue and 19% EPS growth.
High Profitability Metrics::
                                                Pretax pre-provision income hit $55 million, with ROA at 2.25% and ROTCE at 1%, exceeding cost of capital.
Loan Growth and Funding Momentum::
                                                Total loans rose $107 million (6% annualized), driven by $264 million in new loan originations (25% YoY increase).
Margin Expansion and Cost Control::
                                                Net interest margin expanded 9 bps to 4.27%, while noninterest expenses grew only 1.5% QoQ to $60.5 million.

                                

Loan Growth and Credit Metrics

Total loans increased by $107 million or 6% annualized, with $264 million in new loans originated, up 25% compared to the same period last year. Credit metrics improved, with the allowance for credit losses decreasing slightly to $1.057 billion, representing 1.42% of total loans. This decline was primarily due to individually assessed loan resolution in the quarter, offset by loan growth and higher adjustments to economic factors.

Noninterest Income and Expense

Noninterest income totaled $15.9 million, up 9.5% from the previous quarter, primarily due to a $7 million gain on loans sold driven by higher volumes. Noninterest expense came in at $60.5 million, up 1.5% from the prior quarter, reflecting higher salary and employee benefits.

Guidance and Outlook

The company anticipates crossing the $10 billion asset mark during the first quarter of next year and expects expenses to be lower in 2026 due to incentive comp resets. Analysts estimate next year's revenue growth at 3.3%. Byline Bancorp's guidance on NII remains in the same range, with a slight decline expected due to two Fed cuts in the fourth quarter.

Valuation and Dividend Yield

With a Price-to-Tangible Book Value (P/TBV) ratio of approximately 0.95, Byline Bancorp's stock appears to be reasonably valued. The Dividend Yield stands at 1.45%, providing a relatively stable return for investors. Byline Bancorp's strong financial performance and guidance suggest that the company is well-positioned for future growth.

3. NewsRoom

American Century Companies Inc. Boosts Holdings in Byline Bancorp, Inc. $BY

Dec -03

Source: defenseworld.net

Byline Bancorp, Inc. $BY Shares Purchased by Creative Planning

Nov -26

Source: defenseworld.net

Creative Planning Has $2.01 Million Stock Position in Byline Bancorp, Inc. $BY

Nov -26

Source: defenseworld.net

Byline Bancorp: Soft Near-Term Earnings Outlook Leaves Shares Looking Cheap

Nov -21

Source: seekingalpha.com

Connor Clark & Lunn Investment Management Ltd. Sells 24,581 Shares of Byline Bancorp, Inc. $BY

Nov -17

Source: defenseworld.net

19,400 Shares in Byline Bancorp, Inc. $BY Bought by Bailard Inc.

Nov -15

Source: defenseworld.net

Byline Bancorp, Inc. (BY) Q3 2025 Earnings Call Transcript

Oct -24

Source: seekingalpha.com

Compared to Estimates, Byline Bancorp (BY) Q3 Earnings: A Look at Key Metrics

Oct -23

Source: zacks.com

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (6.00%)

6. Segments

Banking and Related Activities

Expected Growth: 6.0%

Byline Bancorp's 6.0% growth in Banking and Related Activities is driven by strategic expansion into new markets, increased commercial lending, and improved deposit gathering efforts. Additionally, the company's focus on digital transformation and cost savings initiatives have enhanced operational efficiency, contributing to the segment's growth.

7. Detailed Products

Commercial Banking

Provides financial solutions to businesses, including cash management, lending, and treasury management services.

Retail Banking

Offers personal banking services, including checking and savings accounts, credit cards, and personal loans.

Wealth Management

Provides investment and wealth management services, including financial planning, investment management, and trust services.

Mortgage Banking

Offers mortgage lending services, including residential and commercial mortgage loans.

Specialized Lending

Provides specialized lending services, including factoring, asset-based lending, and equipment financing.

8. Byline Bancorp, Inc.'s Porter Forces

Forces Ranking

Threat Of Substitutes

The threat of substitutes for Byline Bancorp, Inc. is medium due to the presence of alternative financial institutions and digital payment platforms.

Bargaining Power Of Customers

The bargaining power of customers for Byline Bancorp, Inc. is low due to the lack of concentration of buyers and the presence of multiple banking options.

Bargaining Power Of Suppliers

The bargaining power of suppliers for Byline Bancorp, Inc. is medium due to the presence of multiple suppliers and the moderate level of dependence on them.

Threat Of New Entrants

The threat of new entrants for Byline Bancorp, Inc. is high due to the relatively low barriers to entry and the presence of fintech companies.

Intensity Of Rivalry

The intensity of rivalry for Byline Bancorp, Inc. is high due to the presence of multiple competitors and the high level of competition in the banking industry.

9. SWOT Analysis

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

	Value
Debt Weight	35.43%
Debt Cost	6.68%
Equity Weight	64.57%
Equity Cost	9.55%
WACC	8.54%
Leverage	54.87%

11. Quality Control: Byline Bancorp, Inc. passed 3 out of 9 key points

Strong Liquidity

Low Deb

Strong Interest Coverage

Healthy Cash Flow

Operating Efficiency

Strong Return On Equity

Consistent Revenue Growth

Consistent Operating Cash Flow Growth

Margin Improvement

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

Byline Bancorp

A-Score: 6.6/10

Value: 7.5

Growth: 7.9

Quality: 7.0

Yield: 3.0

Momentum: 6.0

Volatility: 8.3

1-Year Total Return ->

Home Bancorp

A-Score: 6.5/10

Value: 7.3

Growth: 5.9

Quality: 6.2

Yield: 4.0

Momentum: 8.5

Volatility: 7.3

1-Year Total Return ->

ChoiceOne Financial Services

A-Score: 6.1/10

Value: 5.5

Growth: 7.7

Quality: 5.4

Yield: 8.0

Momentum: 3.5

Volatility: 6.7

1-Year Total Return ->

First Mid Bancshares

A-Score: 6.0/10

Value: 6.8

Growth: 5.8

Quality: 5.2

Yield: 6.0

Momentum: 4.0

Volatility: 8.0

1-Year Total Return ->

Colony Bankcorp

A-Score: 6.0/10

Value: 7.3

Growth: 4.1

Quality: 5.2

Yield: 5.0

Momentum: 6.5

Volatility: 7.7

1-Year Total Return ->

Primis Financial

A-Score: 5.0/10

Value: 5.0

Growth: 3.9

Quality: 4.3

Yield: 8.0

Momentum: 2.5

Volatility: 6.3

1-Year Total Return ->

Peers Metrics

12.e Scoring ^Insights

12.f DCF ^BETA

Parameters

Short Term Growth

-3.56%

Short term Time

10.0

Long-Term Growth

2.00%

WACC

8.54%

Byline Bancorp, Inc. - US1244111092

1. Company Snapshot

1.a. Company Description

1.b. Last Insights on BY

1.c. Company Highlights

Higher Growth

Average Yield

Average Quality

Earnings Beats

Revenues Beats

Medium Volatility

Stable Momentum

Revenues Miss

Average Growth

Fairly Valued

Better Quality

Cheaper

2. Byline Bancorp's Strong Q3 2025 Earnings: A Closer Look

Loan Growth and Credit Metrics

Noninterest Income and Expense

Guidance and Outlook

Valuation and Dividend Yield

3. NewsRoom

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (6.00%)

6. Segments

Banking and Related Activities

Expected Growth: 6.0%

7. Detailed Products

Commercial Banking

Retail Banking

Wealth Management

Mortgage Banking

Specialized Lending

8. Byline Bancorp, Inc.'s Porter Forces

Forces Ranking

Threat Of Substitutes

Bargaining Power Of Customers

Bargaining Power Of Suppliers

Threat Of New Entrants

Intensity Of Rivalry

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

11. Quality Control: Byline Bancorp, Inc. passed 3 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

29.19$

Current Price

29.19$

Potential

-0.00%

Expected Cash-Flows

12.e Scoring ^Insights

12.f DCF ^BETA