Byline Bancorp, Inc. Q4 FY2025 earnings call

• Roberto Herencia announced a 20% increase in the quarterly dividend. - Byline successfully integrated with First Security, upgraded customer-facing technology platforms, and is on track to cross the $10 billion asset threshold in 2026. - Focus on organic growth, including a commercial payments business that has onboarded 6 customers and has more in the pipeline. - Strong credit discipline with the allowance for credit losses at 1.45% of total loans. - Capital levels remain strong with CET1 at 12.33% and TCE to TA ratio at 11.29%.

For the full year 2025, Byline Bancorp reported net income of $130.1 million or $2.89 per diluted share on revenue of $446 million, up 9.7% year-on-year. Profitability was strong with pretax pre-provision ROA of 219 basis points, ROA of 136 basis points, and ROTCE of 13.5%. Loan growth was 8.9% year-on-year, deposits grew 2.5%, and capital ratios increased. For the fourth quarter, net income was $34.5 million or $0.76 per diluted share on revenue of $117 million. Net interest income was $101 million, up 1.4% from the prior quarter. Expenses were $60.4 million with an efficiency ratio of 50.3%. The allowance for credit losses was 1.45% of total loans.

• Loan growth is expected to continue in the mid-single digits. - Net interest income outlook is based on the forward curve assuming a 50 basis point decline in the Fed funds rate for 2026, implying a range of $99 million to $100 million for Q1 net interest income. - Board authorized a new share repurchase program to buy back up to 5% of outstanding shares and approved a 20% increase in the quarterly dividend. - Expect quarterly noninterest expense to trend between $58 million and $60 million in 2026.

General risks related to market conditions, interest rate fluctuations, and regulatory changes are mentioned, but no specific detailed risks are extensively discussed in the transcript.

Q: Zoom out on company performance and areas of growth A: Alberto mentioned excitement about the commercial payments business and Byline's position in the Chicago commercial banking space Q: Capital returns and M&A outlook A: Alberto discussed flexibility in capital allocation for growth, dividends, share repurchases, and readiness for potential M&A Q: Loan growth outlook and segments A: Alberto mentioned mid-single-digit loan growth driven by commercial banking categories Q: Commercial payments team details A: Alberto explained the commercial payments team targets verticals like payroll processors and fintech companies with medium-term goals on onboarding and metrics Q: SBA business impact and NII outlook A: Tom and Alberto discussed SBA business impact and the stability and growth prospects of net interest income