Key Highlights

  • Net income was USD 41.8 million, or USD 0.94 per diluted share.
  • Record total Revenue reached USD 121.0 million, up 4.6% year over year.
  • Net interest Margin rose five basis points to 4.33%.
  • The common Dividend rose 16.7% to USD 0.14 per share.

Earnings and Revenue

Byline Bancorp (NYSE:BY) reported third-quarter 2026 results on Thursday. Net Income was USD 41,786 thousand, or USD 0.94 per diluted share, against USD 40,181 thousand, or USD 0.90, in the second quarter and USD 37,200 thousand, or USD 0.82, a year earlier. Earnings per share rose 4.4% from the second quarter and 14.6% from a year earlier.

Total revenue was a record USD 121.0 million, up 2.8% from the second quarter and 4.6% from a year earlier. Net interest income was USD 103.7 million, also a record, and non-interest income was USD 17.3 million. Pre-tax, pre-provision net income was USD 61.2 million, flat with the second quarter and up from USD 55.2 million a year earlier. Pre-tax, pre-provision return on average Assets was 2.45%, the 16th consecutive quarter above 2.00%.

Margin, Funding and Credit

Net interest income rose USD 2.8 million, or 2.8%, on higher Investment securities income, lower expense on other borrowings and one additional day in the quarter. The net interest margin was 4.33%, up five basis points from 4.28% and above the 4.27% a year earlier. Net Loan accretion contributed six basis points, against 11 in the second quarter.

Total deposits grew USD 168.3 million, or 8.5% annualized, while the average cost of deposits rose three basis points to 1.95%. The company reduced wholesale funding by USD 268.7 million and lowered the loan to deposit ratio to 93.22%. President Alberto Paracchini said the company expanded its margin in a quarter when funding costs rose across the industry.

Non-interest expense was USD 59.8 million against USD 56.5 million in the second quarter and USD 60.5 million a year earlier. The efficiency ratio was 48.40% against 46.93% and 51.00%. The provision for Credit losses was USD 6.7 million, down USD 414,000 from USD 7.2 million, which the company attributed to improved Collateral related qualitative factors and lower period-end loan and Lease balances, partly offset by reserves on individually evaluated loans. Provision for income taxes was USD 12.7 million.

Returns and Capital

Return on average assets was 1.67% against 1.63% and 1.52% a year earlier. Return on average tangible common Equity was 14.78% against 14.47% and 15.11%. Book Value per common share was USD 28.55 against USD 28.86, and tangible book value per share was USD 24.14, down 1.4% from the second quarter and up 6.9% from a year earlier.

The common equity tier 1 ratio was 13.29% against 12.92% in the second quarter and 12.15% a year earlier. Tangible common equity to tangible assets was 11.12% against 11.36%.

Dividend and Acquisition

The company returned more than USD 20 million to stockholders through repurchases and dividends, a total Payout Ratio of 63.2%. On Oct. 6 the board declared a dividend of USD 0.14 per share, up 16.7% from USD 0.12, payable Nov. 17 to holders of record on Nov. 3. Executive Chairman and Chief Executive Officer Roberto Herencia also pointed to the recently announced Acquisition of Illinois State Bancorp, the parent of First Nations Bank and The Bank of Bourbonnais, which he said expands the company's market presence and core deposit base.

Metrics to Watch

Earnings per share rose 14.6% year over year while revenue rose 4.6%, a gap that reflects a lower provision relative to income, a lower efficiency ratio and a smaller share count. Reference points include the margin at 4.33%, the efficiency ratio at 48.40% after a rise from 46.93%, the loan to deposit ratio at 93.22%, and tangible book value per share at USD 24.14.