5 Insightful Analyst Questions From Byline Bancorp’s Q4 Earnings Call

Regional banking company Byline Bancorp reported Q4 CY2025 results topping the market’s revenue expectations, with sales up 11.8% year on year to $117 million. Its non-GAAP profit of $0.76 per share was 6% above analysts’ consensus estimates.

Byline Bancorp (BY) Q4 CY2025 Highlights:

• Revenue: $117 million vs analyst estimates of $111.9 million (11.8% year-on-year growth, 4.6% beat)
• Adjusted EPS: $0.76 vs analyst estimates of $0.72 (6% beat)
• Adjusted Operating Income: $46.93 million vs analyst estimates of $52.45 million (40.1% margin, 10.5% miss)
• Market Capitalization: $1.41 billion

StockStory’s Take

Byline Bancorp’s fourth quarter saw revenue and adjusted earnings per share surpass Wall Street expectations, but the market responded negatively, reflecting concerns over operating income and margin pressures. Management attributed the quarter’s growth to robust commercial loan activity, disciplined deposit pricing, and resilience in net interest income despite persistent macroeconomic and regulatory challenges. CEO Alberto Paracchini highlighted the successful integration of the First Security acquisition and progress on technology upgrades, while noting that deposit costs came down and asset quality remained stable. The company’s focus on organic growth, particularly in its core Chicago commercial business and new commercial payments segment, was central to its solid performance in the face of an evolving interest rate environment.

Looking forward, Byline Bancorp’s guidance is shaped by expectations for mid-single-digit loan growth, continued deposit discipline, and cautious asset sensitivity as interest rates potentially decline. Management emphasized that crossing the $10 billion asset threshold in 2026 remains a key milestone, with preparations underway for increased regulatory scrutiny. Paracchini stated, “We have good pipelines and remain well positioned to continue gaining share across all our commercial businesses,” while CFO Thomas Bell cautioned that net interest income may face seasonality and a lag in re-pricing as rates shift. The company aims to balance growth with prudent credit management, continued investment in technology, and incremental fee income from commercial payments and treasury services.

Key Insights from Management’s Remarks

Management credited the quarter’s performance to commercial loan growth, low-cost deposit management, and the launch of new business lines, while also highlighting proactive capital allocation and stable asset quality.

• Commercial loan growth momentum: The core driver of quarterly revenue was expansion in commercial and leasing portfolios, with origination activity up 22% over the prior quarter. Management signaled continued focus on scaling these verticals within the Chicago market, leveraging the bank’s position as the largest local commercial institution.

• Deposit cost discipline: Deposit costs declined by 19 basis points during the quarter, aided by granular pricing and a stable mix of noninterest-bearing deposits. CFO Thomas Bell noted improved analytics allowed for more precise deposit segmentation and pricing, supporting both net interest margin expansion and flexibility in a competitive market.

• Commercial payments business launch: Byline’s new commercial payments segment, launched in April, began onboarding clients such as payroll processors and expanded transaction volumes and fee income. Management is pursuing a deliberate, compliance-focused approach, targeting a handful of clients annually with an onboarding window of six to nine months to ensure risk controls.

• Capital deployment priorities: The company returned $42 million to shareholders in 2025 through dividends and share repurchases, and authorized a new buyback program covering up to 5% of shares. The board also approved a 20% dividend increase, emphasizing flexibility to support organic growth, M&A, and capital returns.

• Stable asset quality: Net charge-offs and criticized asset levels remained within historical ranges, with management maintaining a credit loss allowance of 1.45% of loans and guiding to continued vigilance on credit monitoring, especially as economic conditions evolve.

Drivers of Future Performance

Byline Bancorp’s outlook is anchored in organic commercial loan growth, sustained deposit pricing discipline, and balancing asset sensitivity as it prepares to cross the $10 billion asset threshold.

• Organic growth focus: Management expects mid-single-digit loan growth in 2026, primarily from commercial banking and leasing, supported by robust pipelines and a strong competitive position in Chicago. Real estate lending remains more muted, depending on transaction activity as interest rates shift.

• Margin and interest rate management: The company is targeting stable net interest income and margin, with plans to reduce asset sensitivity and maintain pricing discipline on deposits. Bell explained that deposit repricing benefits may be limited as rates fall, and a gradual catch-up period is expected if the Federal Reserve cuts rates further.

• Regulatory and capital readiness: Crossing the $10 billion asset mark in 2026 will bring increased regulatory requirements, and management has prioritized preparation for this milestone. Strategic flexibility in capital allocation—balancing organic growth, dividends, buybacks, and M&A—remains a central theme.

Catalysts in Upcoming Quarters

In the coming quarters, our analysts will closely monitor (1) the ramp-up and fee contribution from the commercial payments business, (2) the impact of deposit pricing strategies on net interest margin as rates fluctuate, and (3) progress toward and execution upon crossing the $10 billion asset threshold. Additionally, we will track developments in core loan growth and any changes to capital deployment as regulatory requirements evolve.

Byline Bancorp currently trades at $30.82, down from $31.71 just before the earnings. At this price, is it a buy or sell? See for yourself in our full research report (it’s free).

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Regional banking company Byline Bancorp reported Q4 CY2025 results exceeding the market’s revenue expectations, with sales up 11.8% year on year to $117 million. Its non-GAAP profit of $0.76 per share was 6% above analysts’ consensus estimates.

Byline Bancorp (BY) Q4 CY2025 Highlights:

• Net Interest Income: $101.3 million vs analyst estimates of $98.35 million (14.4% year-on-year growth, 3% beat)
• Net Interest Margin: 4.4% vs analyst estimates of 4.2% (18.7 basis point beat)
• Revenue: $117 million vs analyst estimates of $111.9 million (11.8% year-on-year growth, 4.6% beat)
• Efficiency Ratio: 50.3% vs analyst estimates of 52.9% (254.7 basis point beat)
• Adjusted EPS: $0.76 vs analyst estimates of $0.72 (6% beat)
• Tangible Book Value per Share: $23.44 vs analyst estimates of $23.29 (16.6% year-on-year growth, 0.7% beat)
• Market Capitalization: $1.45 billion

Roberto R. Herencia, Executive Chairman and CEO of Byline Bancorp, commented, "Throughout 2025 we advanced our strategy of becoming the preeminent commercial bank in Chicago and delivering strong financial results. We made significant progress across our strategic priorities—deepening our commercial presence, growing customers, and executing initiatives that strengthened our franchise. As we enter 2026, we are operating from a position of strength, remain focused on consistent execution of our strategy, supporting our customers, and driving long‑term value for our stockholders. "

Company Overview

Ranking as the fifth most active Small Business Administration lender in the country, Byline Bancorp is a Chicago-based bank that provides banking services to small and medium-sized businesses, commercial real estate developers, and consumers.

Sales Growth

In general, banks make money from two primary sources. The first is net interest income, which is interest earned on loans, mortgages, and investments in securities minus interest paid out on deposits. The second source is non-interest income, which can come from bank account, credit card, wealth management, investing banking, and trading fees. Over the last five years, Byline Bancorp grew its revenue at a decent 10% compounded annual growth rate. Its growth was slightly above the average banking company and shows its offerings resonate with customers.

We at StockStory place the most emphasis on long-term growth, but within financials, a half-decade historical view may miss recent interest rate changes, market returns, and industry trends. Byline Bancorp’s recent performance shows its demand has slowed as its annualized revenue growth of 7.4% over the last two years was below its five-year trend.

This quarter, Byline Bancorp reported year-on-year revenue growth of 11.8%, and its $117 million of revenue exceeded Wall Street’s estimates by 4.6%.

Net interest income made up 83.1% of the company’s total revenue during the last five years, meaning Byline Bancorp barely relies on non-interest income to drive its overall growth.

Net interest income commands greater market attention due to its reliability and consistency, whereas non-interest income is often seen as lower-quality revenue that lacks the same dependable characteristics.

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Tangible Book Value Per Share (TBVPS)

Banks are balance sheet-driven businesses because they generate earnings primarily through borrowing and lending. They’re also valued based on their balance sheet strength and ability to compound book value (another name for shareholders’ equity) over time.

This is why we consider tangible book value per share (TBVPS) the most important metric to track for banks. TBVPS represents the real, liquid net worth per share of a bank, excluding intangible assets that have debatable value upon liquidation. On the other hand, EPS is often distorted by mergers and flexible loan loss accounting. TBVPS provides clearer performance insights.

Byline Bancorp’s TBVPS grew at an impressive 7.8% annual clip over the last five years. TBVPS growth has also accelerated recently, growing by 14.2% annually over the last two years from $17.98 to $23.44 per share.

Over the next 12 months, Consensus estimates call for Byline Bancorp’s TBVPS to grow by 10.6% to $25.92, mediocre growth rate.

Key Takeaways from Byline Bancorp’s Q4 Results

We enjoyed seeing Byline Bancorp beat analysts’ revenue expectations this quarter. We were also glad its net interest income outperformed Wall Street’s estimates. Overall, we think this was a solid quarter with some key areas of upside. The stock remained flat at $31.70 immediately following the results.

Is Byline Bancorp an attractive investment opportunity at the current price? What happened in the latest quarter matters, but not as much as longer-term business quality and valuation, when deciding whether to invest in this stock. We cover that in our actionable full research report which you can read here (it’s free).

Regional banking company Byline Bancorp will be reporting earnings tomorrow after market close. Here’s what you need to know.

Byline Bancorp beat analysts’ revenue expectations by 4.5% last quarter, reporting revenues of $115.7 million, up 13.6% year on year. It was an exceptional quarter for the company, with a solid beat of analysts’ revenue estimates and an impressive beat of analysts’ net interest income estimates.

Is Byline Bancorp a buy or sell going into earnings? Read our full analysis here, it’s free for active Edge members.

This quarter, analysts are expecting Byline Bancorp’s revenue to grow 6.9% year on year to $111.9 million, improving from the 3.9% increase it recorded in the same quarter last year. Adjusted earnings are expected to come in at $0.72 per share.

Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. Byline Bancorp has only missed Wall Street’s revenue estimates once over the last two years, exceeding top-line expectations by 2.3% on average.

Looking at Byline Bancorp’s peers in the regional banks segment, some have already reported their Q4 results, giving us a hint as to what we can expect. ServisFirst Bancshares delivered year-on-year revenue growth of 22.9%, beating analysts’ expectations by 6.8%, and Simmons First National reported revenues up 17.2%, topping estimates by 5.3%.

Read our full analysis of ServisFirst Bancshares’s results here and Simmons First National’s results here.

Investors in the regional banks segment have had steady hands going into earnings, with share prices flat over the last month. Byline Bancorp is up 1.4% during the same time and is heading into earnings with an average analyst price target of $33.80 (compared to the current share price of $30.19).

Regional banking company Byline Bancorp will be reporting results this Thursday after market hours. Here’s what to expect.

Byline Bancorp beat analysts’ revenue expectations by 4.5% last quarter, reporting revenues of $115.7 million, up 13.6% year on year. It was an exceptional quarter for the company, with an impressive beat of analysts’ revenue estimates and a solid beat of analysts’ net interest income estimates.

Is Byline Bancorp a buy or sell going into earnings? Read our full analysis here, it’s free for active Edge members.

This quarter, analysts are expecting Byline Bancorp’s revenue to grow 6.9% year on year to $111.9 million, improving from the 3.9% increase it recorded in the same quarter last year. Adjusted earnings are expected to come in at $0.72 per share.

Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. Byline Bancorp has only missed Wall Street’s revenue estimates once over the last two years, exceeding top-line expectations by 2.3% on average.

Looking at Byline Bancorp’s peers in the regional banks segment, some have already reported their Q4 results, giving us a hint as to what we can expect. ServisFirst Bancshares delivered year-on-year revenue growth of 22.9%, beating analysts’ expectations by 6.8%, and Simmons First National reported revenues up 15.9%, topping estimates by 4.1%.

Read our full analysis of ServisFirst Bancshares’s results here and Simmons First National’s results here.

Investors in the regional banks segment have had steady hands going into earnings, with share prices flat over the last month. Byline Bancorp’s stock price was unchanged during the same time and is heading into earnings with an average analyst price target of $33.80 (compared to the current share price of $30.20).

The end of the earnings season is always a good time to take a step back and see who shined (and who not so much). Let’s take a look at how regional banks stocks fared in Q3, starting with Valley National Bank .

Regional banks, financial institutions operating within specific geographic areas, serve as intermediaries between local depositors and borrowers. They benefit from rising interest rates that improve net interest margins (the difference between loan yields and deposit costs), digital transformation reducing operational expenses, and local economic growth driving loan demand. However, these banks face headwinds from fintech competition, deposit outflows to higher-yielding alternatives, credit deterioration (increasing loan defaults) during economic slowdowns, and regulatory compliance costs. Recent concerns about regional bank stability following high-profile failures and significant commercial real estate exposure present additional challenges.

The 101 regional banks stocks we track reported a satisfactory Q3. As a group, revenues beat analysts’ consensus estimates by 1.3%.

Luckily, regional banks stocks have performed well with share prices up 10.8% on average since the latest earnings results.

Valley National Bank

Tracing its roots back to 1927 during the economic boom before the Great Depression, Valley National Bancorp (NASDAQGS:VLY) operates Valley National Bank, providing commercial, consumer, and wealth management banking services across several states.

Valley National Bank reported revenues of $512.3 million, up 8.8% year on year. This print was in line with analysts’ expectations, but overall, it was a mixed quarter for the company with a beat of analysts’ EPS estimates but net interest income in line with analysts’ estimates.

Ira Robbins, CEO, commented, “This quarter’s results reflect Valley’s strong momentum as our profitability improvement is catching up to the balance sheet strengthening that has occurred since the beginning of 2024. New additions to our leadership team have already begun to positively impact our business generation, talent base, and strategic operating model.”

Interestingly, the stock is up 21.1% since reporting and currently trades at $12.27.

Best Q3: Customers Bancorp

Originally founded with a "high-tech, high-touch" branch-light banking strategy, Customers Bancorp is a bank holding company that provides commercial and consumer banking services through its Customers Bank subsidiary, with a focus on business lending and digital banking.

Customers Bancorp reported revenues of $231.8 million, up 38.3% year on year, outperforming analysts’ expectations by 6.9%. The business had a stunning quarter with an impressive beat of analysts’ net interest income estimates and a solid beat of analysts’ revenue estimates.

The market seems happy with the results as the stock is up 23.6% since reporting. It currently trades at $81.

Weakest Q3: The Bancorp

Operating behind the scenes of many popular fintech apps and prepaid cards you might use daily, The Bancorp is a bank holding company that specializes in providing banking services to fintech companies and offering specialty lending products.

The Bancorp reported revenues of $174.7 million, up 38.8% year on year, falling short of analysts’ expectations by 9.9%. It was a disappointing quarter as it posted a significant miss of analysts’ revenue estimates and a significant miss of analysts’ net interest income estimates.

The Bancorp delivered the weakest performance against analyst estimates in the group. As expected, the stock is down 9% since the results and currently trades at $70.27.

Read our full analysis of The Bancorp’s results here.

First Citizens BancShares

With roots dating back to 1898 and a significant expansion through its 2023 acquisition of Silicon Valley Bank, First Citizens BancShares (NASDAQGS:FCNC.A) is a bank holding company that provides financial services to individuals and businesses through its First-Citizens Bank & Trust Company subsidiary.

First Citizens BancShares reported revenues of $2.25 billion, flat year on year. This result beat analysts’ expectations by 1.7%. Overall, it was a strong quarter as it also logged a decent beat of analysts’ revenue estimates and a narrow beat of analysts’ net interest income estimates.

The stock is up 25% since reporting and currently trades at $2,179.

Read our full, actionable report on First Citizens BancShares here, it’s free.

Byline Bancorp

Ranking as the fifth most active Small Business Administration lender in the country, Byline Bancorp is a Chicago-based bank that provides banking services to small and medium-sized businesses, commercial real estate developers, and consumers.

Byline Bancorp reported revenues of $115.7 million, up 13.6% year on year. This print topped analysts’ expectations by 4.5%. It was an exceptional quarter as it also put up an impressive beat of analysts’ revenue estimates and a solid beat of analysts’ net interest income estimates.

The stock is up 13.9% since reporting and currently trades at $30.36.

Read our full, actionable report on Byline Bancorp here, it’s free.

The end of an earnings season can be a great time to discover new stocks and assess how companies are handling the current business environment. Let’s take a look at how Popular and the rest of the regional banks stocks fared in Q3.

Regional banks, financial institutions operating within specific geographic areas, serve as intermediaries between local depositors and borrowers. They benefit from rising interest rates that improve net interest margins (the difference between loan yields and deposit costs), digital transformation reducing operational expenses, and local economic growth driving loan demand. However, these banks face headwinds from fintech competition, deposit outflows to higher-yielding alternatives, credit deterioration (increasing loan defaults) during economic slowdowns, and regulatory compliance costs. Recent concerns about regional bank stability following high-profile failures and significant commercial real estate exposure present additional challenges.

The 101 regional banks stocks we track reported a satisfactory Q3. As a group, revenues beat analysts’ consensus estimates by 1.3%.

Thankfully, share prices of the companies have been resilient as they are up 8.4% on average since the latest earnings results.

Popular

Founded in 1893 as the first bank in Puerto Rico to serve the working class, Popular is a financial holding company that provides retail, mortgage, and commercial banking services primarily in Puerto Rico and the mainland United States.

Popular reported revenues of $814 million, up 10.5% year on year. This print was in line with analysts’ expectations, and overall, it was a satisfactory quarter for the company with a narrow beat of analysts’ tangible book value per share estimates.

Interestingly, the stock is up 11.9% since reporting and currently trades at $129.09.

Best Q3: Customers Bancorp

Originally founded with a "high-tech, high-touch" branch-light banking strategy, Customers Bancorp is a bank holding company that provides commercial and consumer banking services through its Customers Bank subsidiary, with a focus on business lending and digital banking.

Customers Bancorp reported revenues of $231.8 million, up 38.3% year on year, outperforming analysts’ expectations by 6.9%. The business had a stunning quarter with an impressive beat of analysts’ net interest income estimates and a solid beat of analysts’ revenue estimates.

The market seems happy with the results as the stock is up 19.3% since reporting. It currently trades at $78.19.

Weakest Q3: The Bancorp

Operating behind the scenes of many popular fintech apps and prepaid cards you might use daily, The Bancorp is a bank holding company that specializes in providing banking services to fintech companies and offering specialty lending products.

The Bancorp reported revenues of $174.7 million, up 38.8% year on year, falling short of analysts’ expectations by 9.9%. It was a disappointing quarter as it posted a significant miss of analysts’ revenue estimates and a significant miss of analysts’ net interest income estimates.

The Bancorp delivered the weakest performance against analyst estimates in the group. As expected, the stock is down 9.4% since the results and currently trades at $69.96.

Read our full analysis of The Bancorp’s results here.

Byline Bancorp

Ranking as the fifth most active Small Business Administration lender in the country, Byline Bancorp is a Chicago-based bank that provides banking services to small and medium-sized businesses, commercial real estate developers, and consumers.

Byline Bancorp reported revenues of $115.7 million, up 13.6% year on year. This result surpassed analysts’ expectations by 4.5%. It was an exceptional quarter as it also put up a solid beat of analysts’ revenue estimates and an impressive beat of analysts’ net interest income estimates.

The stock is up 10.9% since reporting and currently trades at $29.57.

Read our full, actionable report on Byline Bancorp here, it’s free for active Edge members.

Old National Bank

Tracing its roots back to 1834 when Andrew Jackson was president, Old National Bancorp is a bank holding company that provides commercial and consumer loans, deposit services, wealth management, and treasury solutions primarily throughout the Midwest region.

Old National Bank reported revenues of $713 million, up 44.9% year on year. This number topped analysts’ expectations by 2.2%. Aside from that, it was a satisfactory quarter as it also recorded a solid beat of analysts’ revenue estimates but net interest income in line with analysts’ estimates.

The stock is up 11.4% since reporting and currently trades at $23.04.

Read our full, actionable report on Old National Bank here, it’s free for active Edge members.