BYLINE BANCORP, INC.
For the period ended Sep 30, 2025. Filed Nov 7, 2025.
View on SEC.govAbout this filing
A company's report for each of its first three quarters. The financial statements are not audited. It shows how the business has moved since the last annual report, and what management says changed.
Sep 30, 2025 · Filed Nov 7, 2025
BY$38.12+0.2%Stored close · as of Nov 6, 2026
What changed in Management’s Discussion and Analysis?
Read the current filingPrevious report: 10-Q
Period ended 2025-06-30; filed 2025-08-07.
0000950170-25-105126
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsCurrent report: 10-Q
Period ended 2025-09-30; filed 2025-11-07.
0001193125-25-272446
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsThe baseline is this issuer’s latest earlier reporting period of the same form that was filed before the current report. A previous 10-Q is a different quarter, not a year-over-year comparison. Amendments are excluded.
Compared 243 previous paragraphs and 245 current paragraphs.
167 unchanged; 71 reworded; 7 added; 3 removed; 2 previous and 0 current paragraphs rearranged.
Tables are not compared: 28 previous and 26 current tables excluded. Dates, whitespace, punctuation and numbering changes are ignored; changes to financial figures remain significant.
A changed paragraph is not evidence that risk increased or decreased. An unchanged paragraph does not establish that risk stayed the same.
Added paragraphs (7)
Current report
ATM and interchange fees were $1.0 million for the three months ended September 30, 2025 compared to $1.1 million for the three months ended September 30, 2024, a decrease of $128,000 or 11.1%, mainly due to lower ATM fees. ATM and interchange fees were $3.1 million for the nine months ended September 30, 2025 compared to $3.4 million for the nine months ended September 30, 2024, a decrease of $273,000 or 8.1%, primarily from decreases in ATM fees and interchange fees.
Current report
Net gains on sales of loans were $7.0 million for the three months ended September 30, 2025 compared to $5.9 million for the three months ended September 30, 2024, an increase of $1.1 million or 19.0%, driven mainly by higher volume. We sold $92.9 million of U.S. government guaranteed loans during the three months ended September 30, 2025 compared to $79.5 million during the three months ended September 30, 2024. Net gains on sales of loans were $17.3 million for the nine months ended September 30, 2025 compared to $17.4 million for the nine months ended September 30, 2024, a decrease of $100,000 or 0.6%, mainly due to a decrease in premiums. We sold $236.1 million of U.S. government guaranteed loans during the nine months ended September 30, 2025 compared to $225.9 million during the nine months ended September 30, 2024. As a result of the U.S. government shutdown that began on October 1, 2025, the uncertainty surrounding our government guaranteed lending business may negatively impact our net gain on sales of loans. When the U.S. government reopens, we anticipate sales and related settlements will return to more normalized activity.
Current report
Data processing was $4.9 million for the three months ended September 30, 2025 compared to $4.2 million for the three months ended September 30, 2024, an increase of $688,000 or 16.3%. The increase was primarily driven by software licensing and maintenance expenses. Data processing was $15.1 million for the nine months ended September 30, 2025, compared to $12.4 million for the nine months ended September 30, 2024, an increase of $2.7 million or 21.5%. The increase was driven by increased software licensing and maintenance expenses and merger-related expenses.
Current report
Other non-interest expense was $6.3 million for the three months ended September 30, 2025 compared to $5.0 million for the three months ended September 30, 2024, an increase of $1.3 million or 26.6%. The increase was primarily driven by the loss on extinguishment of subordinated debt. Other non-interest expense was $16.1 million for the nine months ended September 30, 2025, compared to $15.7 million for the nine months ended September 30, 2024, an increase of $401,000 or 2.6%.
Current report
During 2020, the Company issued $75.0 million in aggregate principal amount of its fixed-to-floating subordinated notes that mature on July 1, 2030. The subordinated notes bear a fixed interest rate of 6.00% until July 1, 2025 and a floating interest rate equal to a benchmark rate, which is expected to be three-month Secured Overnight Financing Rate plus 588 basis points thereafter until maturity. The transaction resulted in debt issuance costs of approximately $1.7 million that are being amortized over 10 years. On August 22, 2025, the Company provided notice of full redemption to the holders of the subordinated notes. On October 1, 2025, the Company redeemed the $75.0 million outstanding principal amount of subordinated notes due 2030 at a redemption price equal to 100% of the aggregate principal plus accrued interest of $1.9 million.
Current report
In connection with the notice of full redemption, the Company recognized an $843,000 loss on the early debt extinguishment, which is reflected in other non-interest expense on the Condensed Consolidated Statements of Operations for the three and nine months ended September 30, 2025. As of September 30, 2025, the liability outstanding of the subordinated notes issued in 2020 was $75.0 million.
Current report
On August 7, 2025, the Company issued $75.0 million in aggregate principal amount of 6.875% fixed-to-floating rate subordinated notes that mature on August 15, 2035. The subordinated notes bear a fixed interest rate of 6.875% until August 15, 2030 and a floating interest rate equal to the then current three-month SOFR plus 322 basis points thereafter until maturity. The Company may, at its option, redeem the notes, in whole or in part, on a quarterly basis beginning on August 15, 2030, subject to obtaining the prior approval of the Federal Reserve to the extent such approval is then required. The transaction resulted in debt issuance costs of approximately $1.0 million that will be amortized over 10 years. As of September 30, 2025, the liability outstanding relating to the subordinated notes issued on August 7, 2025, net of unamortized debt issuance costs, was $74.0 million. Refer to Note 13—Subordinated Notes and Junior Subordinated Debentures for additional discussion.
Removed paragraphs (3)
Previous report
Net gains on sales of loans were $5.4 million for the three months ended June 30, 2025 compared to $6.0 million for the three months ended June 30, 2024, a decrease of $622,000 or 10.3%, driven mainly by lower premiums. We sold $73.0 million of U.S. government guaranteed loans during the three months ended June 30, 2025 compared to $72.5 million during the three months ended June 30, 2024. Net gains on sales of loans were $10.4 million for the six months ended June 30, 2025 compared to $11.6 million for the six months ended June 30, 2024, a decrease of $1.2 million or 10.5%, driven by a lower volume of loans sold. We sold $143.2 million of U.S. government guaranteed loans during the six months ended June 30, 2025 compared to $146.4 million during the six months ended June 30, 2024.
Previous report
Data processing was $5.0 million for the three months ended June 30, 2025 compared to $4.0 million for the three months ended June 30, 2024, an increase of $950,000 or 23.6%. Data processing was $10.2 million for the six months ended June 30, 2025, compared to $8.2 million for the six months ended June 30, 2024, an increase of $2.0 million or 24.2%. The increases were driven by merger-related expenses.
Previous report
Other non-interest expense was $4.8 million for the three months ended June 30, 2025 compared to $4.9 million for the three months ended June 30, 2024, a decrease of $70,000 or 1.4%. Other non-interest expense was $9.7 million for the six months ended June 30, 2025, compared to $10.7 million for the six months ended June 30, 2024, a decrease of $930,000 or 8.7%. These decreases were mostly due to gains on sales of assets held for sale related to the sale of two properties.
Reworded paragraphs (71)
Previous wording
uncertainty regarding domestic, foreign, and geopolitical developments and the United States and global economic outlook that may impact market conditions or affect demand for certain banking products and services, and the impact on our customers, which could impair the ability of our borrowers to repay outstanding loans and leases, impair collateral values and further increase our allowance for credit losses - loans and leases, as well as result in possible asset impairment charges;
Current wording
uncertainty regarding domestic, foreign, and geopolitical developments and the United States, including the effects of a prolonged US government shutdown, and global economic outlook that may impact market conditions or affect demand for certain banking products and services, and the impact on our customers, which could impair the ability of our borrowers to repay outstanding loans and leases, impair collateral values and further increase our allowance for credit losses - loans and leases, as well as result in possible asset impairment charges;
Previous wording
We are a bank holding company headquartered in Chicago, Illinois, and conduct all our business activities through our subsidiary, Byline Bank, a full service commercial bank, and Byline Bank’s subsidiaries. Through Byline Bank, we offer a broad range of banking products and services to small and medium sized businesses, commercial real estate and financial sponsors and to consumers who generally live or work near our branches. We also offer online account opening to consumer and business customers through our website and provide trust and wealth management services to our customers. In addition to our traditional commercial banking business, we provide small ticket equipment leasing solutions through Byline Financial Group, a wholly-owned subsidiary of Byline Bank, headquartered in Bannockburn, Illinois, with sales offices in Illinois, and sales representatives in Illinois, Michigan, and New York. We participate in U.S. government guaranteed lending programs and originate U.S. government guaranteed loans. Byline Bank is a leading originator of SBA loans and was the most active 7(a) lender in Illinois for the fiscal year ended June 30, 2025.
Current wording
We are a bank holding company headquartered in Chicago, Illinois, and conduct all our business activities through our subsidiary, Byline Bank, a full service commercial bank, and Byline Bank’s subsidiaries. Through Byline Bank, we offer a broad range of banking products and services to small and medium sized businesses, commercial real estate and financial sponsors and to consumers who generally live or work near our branches. We also offer online account opening to consumer and business customers through our website and provide trust and wealth management services to our customers. In addition to our traditional commercial banking business, we provide small ticket equipment leasing solutions through Byline Financial Group, a wholly-owned subsidiary of Byline Bank, headquartered in Bannockburn, Illinois, with sales offices in Illinois, and sales representatives in Illinois and New York. We participate in U.S. government guaranteed lending programs and originate U.S. government guaranteed loans. Byline Bank is a leading originator of SBA loans and was the most active 7(a) lender in Illinois for the fiscal year ended September 30, 2025.
Previous wording
(3) Calculation excludes merger-related expenses, secondary public offering of common stock expenses and impairment of right-of-use assets.
Current wording
(3) Calculation excludes merger-related expenses, secondary public offering of common stock expenses, loss on extinguishment of debt, and impairment of right-of-use assets.
Previous wording
We reported consolidated net income of $30.1 million for the three months ended June 30, 2025 compared to net income of $29.7 million for the three months ended June 30, 2024, an increase of $411,000. The increase in net income was attributable to a $9.4 million increase in net interest income and a $1.6 million increase in non-interest income, offset by a $6.4 million increase in non-interest expense, and a $5.9 million increase in provision for credit losses. Net income was $0.66 per basic and per diluted common share for the three months ended June 30, 2025, compared to $0.68 per basic and per diluted common share for the three months ended June 30, 2024.
Current wording
We reported consolidated net income of $37.2 million for the three months ended September 30, 2025 compared to net income of $30.3 million for the three months ended September 30, 2024, an increase of $6.9 million. The increase in net income was attributable to a $12.4 million increase in net interest income, a $2.2 million decrease in provision for credit losses, and a $1.5 million increase in non-interest income, offset by a $6.2 million increase in non-interest expense, and a $3.0 million increase to the provision for income taxes. Net income was $0.82 per basic and per diluted common share for the three months ended September 30, 2025, compared to $0.70 and $0.69 per basic common share and per diluted common share, respectively, for the three months ended September 30, 2024.
Previous wording
The increase in net interest income was mainly a result of lower rates paid on deposits. The increase in non-interest income was mainly due to an increase in other non-interest income mainly from swap activity. The increase in non-interest expense was primarily due to increases in salaries and employee benefits driven by merger-related costs and merit increases.
Current wording
The increase in net interest income was mainly a result of lower rates paid on deposits. The increase in non-interest income was mainly due to an increase in net gains on sales of loans due to higher volume. The increase in non-interest expense was primarily due to higher incentive expense and increased health insurance in salaries and employee benefits.
Previous wording
Our annualized return on average assets was 1.25% for the three months ended June 30, 2025 compared to 1.31% for the three months ended June 30, 2024. Our annualized return on average stockholders’ equity was 10.24% for the three months ended June 30, 2025 compared to 11.83% for the three months ended June 30, 2024. Our efficiency ratio was 52.61% for the three months ended June 30, 2025 compared to 52.19% for the three months ended June 30, 2024. Our adjusted efficiency ratio was 48.20% for the three months ended June 30, 2025, compared to 52.19% for the three months ended June 30, 2024.
Current wording
Our annualized return on average assets was 1.52% for the three months ended September 30, 2025 compared to 1.29% for the three months ended September 30, 2024. Our annualized return on average stockholders’ equity was 12.21% for the three months ended September 30, 2025 compared to 11.39% for the three months ended September 30, 2024. Our efficiency ratio was 51.00% for the three months ended September 30, 2025 compared to 52.02% for the three months ended September 30, 2024. Our adjusted efficiency ratio was 50.27% for the three months ended September 30, 2025, compared to 51.62% for the three months ended September 30, 2024.
Previous wording
We reported consolidated net income of $58.3 million for the six months ended June 30, 2025 compared to net income of $60.1 million for the six months ended June 30, 2024, a decrease of $1.8 million. The decrease in net income was primarily attributable to a $9.0 million increase in non-interest expense and an increase of $8.4 million in provision for credit losses, offset by a $12.1 million increase in net interest income and a $2.5 million decrease in the provision for income taxes. Net income was $1.31 per basic and $1.30 per diluted common share for the six months ended June 30, 2025, compared to $1.39 per basic and $1.37 per diluted common share for the six months ended June 30, 2024.
Current wording
We reported consolidated net income of $95.5 million for the nine months ended September 30, 2025 compared to net income of $90.4 million for the nine months ended September 30, 2024, an increase of $5.1 million. The increase in net income was primarily attributable to a $24.5 million increase in net interest income, and a $2.5 million increase in non-interest income, offset by an increase of $15.2 million in non-interest expense, and an increase of $6.2 million in provision for credit losses. Net income was $2.14 per basic and $2.12 per diluted common share for the nine months ended September 30, 2025, compared to $2.08 per basic and $2.07 per diluted common share for the nine months ended September 30, 2024.
Previous wording
The increase in non-interest expense during the six months ended June 30, 2025 was mostly due to an increase in salaries and employee benefits mainly related to the First Security acquisition. The increase in provision for credit losses was mainly due to the First Security acquisition and weakening macroeconomic conditions. The increase in net interest income during the six months ended June 30, 2025 was mainly a result of decrease in costs of total interest-bearing liabilities.
Current wording
The increase in net interest income during the nine months ended September 30, 2025 mainly a result of decrease in costs of total interest-bearing liabilities. The increase in non-interest income was primarily the result of increased swap income. The increase in non-interest expense was primarily the result of an increase in salaries and employee benefits mainly related to the First Security acquisition and increased incentive compensation. The increase in provision for credit losses was mainly due to growth in the loan and lease portfolios and weakening macroeconomic conditions.
Previous wording
Our annualized return on average assets was 1.25% for the six months ended June 30, 2025 compared to 1.33% for the six months ended June 30, 2024. Our annualized return on average stockholders’ equity was 10.28% for the six months ended June 30, 2025 compared to 12.04% for the six months ended June 30, 2024. Our efficiency ratio was 53.11% for the six months ended June 30, 2025 compared to 52.06% for the six months ended June 30, 2024. Our adjusted efficiency ratio was 50.54% for the six months ended June 30, 2025 compared to 51.97% for the six months ended June 30, 2024.
Current wording
Our annualized return on average assets was 1.34% for the nine months ended September 30, 2025 compared to 1.32% for the nine months ended September 30, 2024. Our annualized return on average stockholders’ equity was 10.95% for the nine months ended September 30, 2025 compared to 11.81% for the nine months ended September 30, 2024. Our efficiency ratio was 52.37% for the nine months ended September 30, 2025 compared to 52.05% for the nine months ended September 30, 2024. Our adjusted efficiency ratio was 50.44% for the nine months ended September 30, 2025 compared to 51.85% for the nine months ended September 30, 2024.
Previous wording
We also recognize income from the accretable discounts associated with the purchase of interest-earning assets. Because of our recapitalization and acquisitions, we derive a portion of our interest income from the accretable discounts on purchase credit deteriorated and acquired non-credit-deteriorated loans. The accretion is generally recognized over the life of the loan. This accretion will continue to have an impact on our net interest income as long as loans acquired with a discount at acquisition represent a meaningful portion of our interest-earning assets. As of June 30, 2025 and December 31, 2024, purchased credit deteriorated loans accounted for under ASC Topic 326 represented 1.8% of our total loan and lease portfolio.
Current wording
We also recognize income from the accretable discounts associated with the purchase of interest-earning assets. Because of our recapitalization and acquisitions, we derive a portion of our interest income from the accretable discounts on purchase credit deteriorated and acquired non-credit-deteriorated loans. The accretion is generally recognized over the life of the loan. This accretion will continue to have an impact on our net interest income as long as loans acquired with a discount at acquisition represent a meaningful portion of our interest-earning assets. As of September 30, 2025 and December 31, 2024, purchased credit deteriorated loans accounted for under ASC Topic 326 represented 1.6% and 1.8% of our total loan and lease portfolio, respectively.
Previous wording
Loan and lease balances are net of deferred origination fees and costs and initial direct costs. Fees included in loan and lease interest income were $2.3 million for each of the three months ended June 2025 and 2024, respectively. Non-accrual loans and leases are included in total loan and lease balances.
Current wording
Loan and lease balances are net of deferred origination fees and costs and initial direct costs. Fees included in loan and lease interest income were $2.6 million and $2.7 million for each of the three months ended September 2025 and 2024, respectively. Non-accrual loans and leases are included in total loan and lease balances.
Previous wording
Loan and lease balances are net of deferred origination fees and costs and initial direct costs. Fees included in loan and lease interest income were $4.6 million and $4.0 million for the six months ended June 2025 and 2024, respectively. Non-accrual loans and leases are included in total loan and lease balances.
Current wording
Loan and lease balances are net of deferred origination fees and costs and initial direct costs. Fees included in loan and lease interest income were $6.4 million and $6.2 million for the nine months ended September 2025 and 2024, respectively. Non-accrual loans and leases are included in total loan and lease balances.
Previous wording
Net interest income for the three months ended June 30, 2025 was $96.0 million compared to $86.5 million during the same period in 2024, an increase of $9.4 million, or 10.9%. Interest income increased $3.0 million for the three months ended June 30, 2025 compared to the same period in 2024 primarily a result of growth in the loan and lease portfolio, both from acquired loans and organic growth. Interest expense decreased by $6.5 million for the three months ended June 30, 2025 compared to the same period in 2024 mostly due to lower rates paid on interest-bearing deposits and change in deposit mix.
Current wording
Net interest income for the three months ended September 30, 2025 was $99.9 million compared to $87.5 million during the same period in 2024, an increase of $12.4 million, or 14.2%. Interest income increased $2.2 million for the three months ended September 30, 2025 compared to the same period in 2024 primarily a result of growth in the loan and lease portfolio. Interest expense decreased by $10.2 million for the three months ended September 30, 2025 compared to the same period in 2024 mostly due to lower rates paid on interest-bearing deposits, primarily time deposits.
Previous wording
Net interest income for the six months ended June 30, 2025 was $184.2 million compared to $172.1 million during the same period in 2024, an increase of $12.1 million, or 7.0%. Interest income decreased $513,000 for the six months ended June 30, 2025 compared to the same period in 2024 primarily as a result of lower yields on loans and leases, offset by growth in the loan and lease portfolio. Interest expense decreased by $12.6 million for the six months ended June 30, 2025 compared to the same period in 2024 mostly due lower rates paid on interest-bearing deposits and change in deposit mix.
Current wording
Net interest income for the nine months ended September 30, 2025 was $284.1 million compared to $259.5 million during the same period in 2024, an increase of $24.5 million, or 9.5%. Interest income increased $1.7 million for the nine months ended September 30, 2025 compared to the same period in 2024 primarily from growth in the loan and lease portfolio, offset by lower yields on loans and leases. Interest expense decreased by $22.9 million for the nine months ended September 30, 2025 compared to the same period in 2024 mostly due lower rates paid on interest-bearing deposits, primarily time deposits.
Previous wording
The net interest margin for the three months ended June 30, 2025 was 4.18%, an increase of 20 basis points compared to 3.98% for the three months ended June 30, 2024. The increase was primarily attributable to lower rates paid on deposits. The net interest margin for the six months ended June 30, 2025 was 4.13%, an increase of 14 basis points compared to 3.99% for the six months ended June 30, 2024. The increase was primarily attributable to lower rates paid on deposits.
Current wording
The net interest margin for the three months ended September 30, 2025 was 4.27%, an increase of 39 basis points compared to 3.88% for the three months ended September 30, 2024. The increase was primarily attributable to lower rates paid on time deposits, offset by lower yields on interest bearing cash. The net interest margin for the nine months ended September 30, 2025 was 4.18%, an increase of 23 basis points compared to 3.95% for the nine months ended September 30, 2024. The increase was primarily attributable to lower rates paid on time deposits, offset by lower yields on loans and interest bearing cash.
Previous wording
Net loan accretion income was $3.0 million for the three months ended June 30, 2025 compared to $3.7 million for the three months ended June 30, 2024, a decrease of $678,000 mainly due to acquired loans converting to originated. Total net loan accretion on acquired loans contributed 13 basis points to the net interest margin for the three months ended June 30, 2025 compared to 17 basis points for the three months ended June 30, 2024.
Current wording
Net loan accretion income was $2.5 million for the three months ended September 30, 2025 compared to $3.0 million for the three months ended September 30, 2024, a decrease of $454,000 mainly due to acquired loans converting to originated. Total net loan accretion on acquired loans contributed 11 basis points to the net interest margin for the three months ended September 30, 2025 compared to 13 basis points for the three months ended September 30, 2024.
Previous wording
Net loan accretion income was $5.6 million for the six months ended June 30, 2025 compared to $7.9 million for the six months ended June 30, 2024, a decrease of $2.4 million due to acquired loans converting to originated. Total net loan accretion on acquired loans contributed 12 basis points to the net interest margin for the six months ended June 30, 2025 compared to 18 basis points for the six months ended June 30, 2024.
Current wording
Net loan accretion income was $8.1 million for the nine months ended September 30, 2025 compared to $10.9 million for the nine months ended September 30, 2024, a decrease of $2.8 million due to acquired loans converting to originated and charge-offs of PCD loans. Total net loan accretion on acquired loans contributed 12 basis points to the net interest margin for the nine months ended September 30, 2025 compared to 17 basis points for the nine months ended September 30, 2024.
Previous wording
The provision for credit losses was $11.9 million for the three months ended June 30, 2025, compared to $6.0 million for the three months ended June 30, 2024, an increase of $5.9 million and is comprised of a provision for credit losses - loans and leases and a provision for credit losses - unfunded commitments. Provision for credit losses - loans and leases was $11.8 million for the three months ended June 30, 2025, and $6.9 million for the three months ended June 30, 2024, an increase of $4.9 million. On April 1, 2025, a provision for credit losses of $864,000 was recorded on acquired non-credit-deteriorated loans related to the First Security acquisition. The provision for credit losses - unfunded commitments was a provision of $166,000 and a recapture of $833,000 for the three months ended June 30, 2025 and 2024, respectively.
Current wording
The provision for credit losses was $5.3 million for the three months ended September 30, 2025, compared to $7.5 million for the three months ended September 30, 2024, a decrease of $2.2 million and is comprised of a provision for credit losses - loans and leases and a provision for credit losses - unfunded commitments. Provision for credit losses - loans and leases was $5.1 million for the three months ended September 30, 2025, and $7.6 million for the three months ended September 30, 2024, a decrease of $2.5 million. The provision for credit losses - unfunded commitments was a provision of $201,000 and a recapture of $122,000 for the three months ended September 30, 2025 and 2024, respectively.
Previous wording
The provision for credit losses was $21.1 million for the six months ended June 30, 2025, compared to $12.7 million for the six months ended June 30, 2024, an increase of $8.4 million. Provision for credit losses - loans and leases was $20.8 million for the six months ended June 30, 2025, and $13.8 million for the six months ended June 30, 2024, an increase of $7.0 million. The provision for credit losses - unfunded commitments reflects a provision of $269,000 and a recapture of $1.1 million for the six months ended June 30, 2025 and 2024, respectively.
Current wording
The provision for credit losses was $26.4 million for the nine months ended September 30, 2025, compared to $20.2 million for the nine months ended September 30, 2024, an increase of $6.2 million. Provision for credit losses - loans and leases was $25.9 million for the nine months ended September 30, 2025, and $21.4 million for the nine months ended September 30, 2024, an increase of $4.5 million. On April 1, 2025, a provision for credit losses of $864,000 was recorded on acquired non-credit-deteriorated loans related to the First Security acquisition. The provision for credit losses - unfunded commitments reflects a provision of $470,000 and a recapture of $1.2 million for the nine months ended September 30, 2025 and 2024, respectively.
Previous wording
Fees and service charges on deposits represent amounts charged to customers for banking services, such as fees on deposit accounts, and include, but are not limited to, maintenance fees, insufficient fund fees, overdraft protection fees, wire transfer fees, and other charges. Fees and service charges on deposits were $2.6 million and $2.5 million for the three months ended June 30, 2025 and 2024, respectively. Fees and service charges on deposits were $5.3 million and $5.0 million for the six months ended June 30, 2025 and 2024, respectively. The increases were primarily due to increases in deposit balances.
Current wording
Fees and service charges on deposits represent amounts charged to customers for banking services, such as fees on deposit accounts, and include, but are not limited to, maintenance fees, insufficient fund fees, overdraft protection fees, wire transfer fees, and other charges. Fees and service charges on deposits were $2.7 million and $2.6 million for the three months ended September 30, 2025 and 2024, respectively. Fees and service charges on deposits were $8.1 million and $7.6 million for the nine months ended September 30, 2025 and 2024, respectively. The increases were primarily due to increases in deposit balances.
Previous wording
While portions of the loans that we originate are sold and generate gains on sale revenue, servicing rights for the majority of loans that we sell are retained by us. In exchange for continuing to service loans that have been sold, we receive servicing revenue from a portion of the interest cash flow of the loan. We generated $3.1 million and $3.2 million in loan servicing revenue on the sold portion of the U.S. government guaranteed loans for the three months ended June 30, 2025 and 2024, respectively. We generated $6.1 million and $6.6 million in loan servicing revenue on the sold portion of the U.S. government guaranteed loans for the six months ended June 30, 2025 and 2024, respectively. At June 30, 2025 and 2024, the outstanding balance of guaranteed loans serviced was $1.7 billion.
Current wording
While portions of the loans that we originate are sold and generate gains on sale revenue, servicing rights for the majority of loans that we sell are retained by us. In exchange for continuing to service loans that have been sold, we receive servicing revenue from a portion of the interest cash flow of the loan. We generated $3.1 million and $3.2 million in loan servicing revenue on the sold portion of the U.S. government guaranteed loans for the three months ended September 30, 2025 and 2024, respectively. We generated $9.2 million and $9.8 million in loan servicing revenue on the sold portion of the U.S. government guaranteed loans for the nine months ended September 30, 2025 and 2024, respectively. The decrease in revenue in each period is due to higher prepayments. At September 30, 2025 and 2024, the outstanding balance of guaranteed loans serviced was $1.7 billion.
Previous wording
Loan servicing asset revaluation represents net changes in the fair value of our servicing assets. Loan servicing asset revaluation had a downward adjustment of $2.1 million and $2.5 million for the three months ended June 30, 2025 and 2024, respectively, a change of $318,000. Change in the quarterly revaluation was mainly due to a changes in prepayment speeds. Loan servicing asset revaluation had a downward adjustment of $3.2 million for both the six months ended June 30, 2025 and 2024, a change of $30,000.
Current wording
Loan servicing asset revaluation represents net changes in the fair value of our servicing assets. Loan servicing asset revaluation had a downward adjustment of $1.3 million and $2.2 million for the three months ended September 30, 2025 and 2024, respectively, a change of $889,000. Loan servicing asset revaluation had a downward adjustment of $4.5 million and $5.4 million for the nine months ended September 30, 2025 and 2024, respectively, a change of $859,000. Change in the revaluations was mainly due to a changes in prepayment speeds.
Previous wording
Wealth management and trust income represents fees charged to customers for investment, trust, or wealth management services and are primarily determined by total assets under administration. Wealth management and trust income was $1.1 million for the three months ended June 30, 2025 compared to $942,000 for the three months ended June 30, 2024, an increase of $132,000 or 14.0%. Wealth management and trust income was $2.2 million for the six months ended June 30, 2025 compared to $2.1 million for the six months ended June 30, 2024, an increase of $57,000 or 2.7%. The increases were primarily driven by higher fees from higher asset managed balances. Assets under administration were $783.1 million and $665.7 million as of June 30, 2025 and 2024, respectively.
Current wording
Wealth management and trust income represents fees charged to customers for investment, trust, or wealth management services and are primarily determined by total assets under administration. Wealth management and trust income was $1.4 million for the three months ended September 30, 2025 compared to $1.1 million for the three months ended September 30, 2024, an increase of $265,000 or 24.1%. Wealth management and trust income was $3.5 million for the nine months ended September 30, 2025 compared to $3.2 million for the nine months ended September 30, 2024, an increase of $322,000 or 10.1%. The increases were primarily driven by higher fees. Assets under administration were $807.2 million and $747.7 million as of September 30, 2025 and 2024, respectively.
Previous wording
Other non-interest income was $3.3 million for the three months ended June 30, 2025 compared to $1.8 million for the three months ended June 30, 2024, an increase of $1.5 million or 85.5%. The increase was primarily driven by net gains on sales of leased equipment, income associated with bank owned life insurance, and increased swap fee income. Other non-interest income was $5.6 million for the six months ended June 30, 2025 compared to $4.0 million for the six months ended June 30, 2024, an increase of $1.6 million or 40.1%. The increase was primarily driven by net gains on sales of leased equipment, income associated with bank owned life insurance, and increased swap fee income.
Current wording
Other non-interest income was $2.3 million for the three months ended September 30, 2025 and 2024, a decrease of $16,000 or 0.7%. Other non-interest income was $7.9 million for the nine months ended September 30, 2025 compared to $6.3 million for the nine months ended September 30, 2024, an increase of $1.6 million or 25.2%. The increase was primarily driven by increased swap fee income and income associated with bank owned life insurance.
Previous wording
Salaries and employee benefits, the single largest component of our non-interest expense, totaled $37.8 million and $33.9 million for the three months ended June 30, 2025 and 2024, respectively, an increase of $3.9 million, or 11.5%. Salaries and employee benefits, totaled $74.1 million for the six months ended June 30, 2025 compared to $67.9 million for the six months ended June 30, 2024, an increase of $6.2 million, or 9.1%. The increase was primarily a result of merger-related expenses, merit increases, lower deferred salaries, and higher commissions paid.
Current wording
Salaries and employee benefits, the single largest component of our non-interest expense, totaled $37.5 million and $35.0 million for the three months ended September 30, 2025 and 2024, respectively, an increase of $2.5 million, or 7.2%. The increase was mainly due to higher incentive compensation and higher employee benefits. Salaries and employee benefits, totaled $111.6 million for the nine months ended September 30, 2025 compared to $102.8 million for the nine months ended September 30, 2024, an increase of $8.7 million, or 8.5%. The increase was primarily a result of merger-related expenses and higher incentive compensation.
Previous wording
Loan and lease related expenses were $938,000 for the three months ended June 30, 2025 compared to $741,000 for the three months ended June 30, 2024, an increase of $197,000, or 26.5%. Loan and lease related expenses were $1.8 million for the six months ended June 30, 2025, compared to $1.4 million for the six months ended June 30, 2024, an increase of $339,000 or 23.7%. The increase was primarily driven by higher government guaranteed loan expenses and higher taxes and insurance expenses.
Current wording
Loan and lease related expenses were $1.3 million for the three months ended September 30, 2025 compared to $703,000 for the three months ended September 30, 2024, an increase of $571,000, or 81.3%. Loan and lease related expenses were $3.0 million for the nine months ended September 30, 2025, compared to $2.1 million for the nine months ended September 30, 2024, an increase of $910,000 or 42.7%. The increases were primarily driven by higher government guaranteed loan expenses, real estate taxes, and insurance expenses.
Previous wording
Legal, audit, and other professional fees were $4.8 million for the three months ended June 30, 2025 compared to $3.7 million for the three months ended June 30, 2024, an increase of $1.1 million or 30.6%. Legal, audit, and other professional fees were $8.1 million for the six months ended June 30, 2025 compared to $6.4 million for the six months ended June 30, 2024, an increase of $1.7 million or 25.9%. The increases were principally driven by merger-related expenses and fees and expenses related to the secondary public offering of our common stock.
Current wording
Legal, audit, and other professional fees were $3.9 million for the three months ended September 30, 2025 compared to $3.6 million for the three months ended September 30, 2024, an increase of $233,000 or 6.4%. The increase was primarily driven by increased outside service fees. Legal, audit, and other professional fees were $12.0 million for the nine months ended September 30, 2025 compared to $10.1 million for the nine months ended September 30, 2024, an increase of $1.9 million or 18.9%. The increase was principally driven by increased outside service fees, merger-related expenses, and fees and expenses related to the secondary public offering of our common stock.
Previous wording
Our efficiency ratio was 52.61% for the three months ended June 30, 2025 compared to 52.19% for the three months ended June 30, 2024. The change in our efficiency ratio for the three months ended June 30, 2025 was driven by the increase in non-interest expense. Our adjusted efficiency ratio was 48.20% for the three months ended June 30, 2025 compared to 52.19% for the three months ended June 30, 2024. Our efficiency ratio was 53.11% for the six months ended June 30, 2025, compared to 52.06% for the six months ended June 30, 2024. The change in our efficiency ratio was due to higher non-interest expense. Our adjusted efficiency ratio was 50.54% for the six months ended June 30, 2025, compared to 51.97% for the six months ended June 30, 2024.
Current wording
Our efficiency ratio was 51.00% for the three months ended September 30, 2025 compared to 52.02% for the three months ended September 30, 2024. Our adjusted efficiency ratio was 50.27% for the three months ended September 30, 2025 compared to 51.62% for the three months ended September 30, 2024. The change in our efficiency ratio was mainly driven by increases to net interest income. Our efficiency ratio was 52.37% for the nine months ended September 30, 2025, compared to 52.05% for the nine months ended September 30, 2024. The change in our efficiency ratio was driven by higher non-interest expense. Our adjusted efficiency ratio was 50.44% for the nine months ended September 30, 2025, compared to 51.85% for the nine months ended September 30, 2024.
Previous wording
Our provision for income taxes for the six months ended June 30, 2025 totaled $18.1 million compared to $20.6 million for the six months ended June 30, 2024, a decrease of $2.5 million or 12.1%. The decrease in income tax expense was principally due to a decrease in net income before provision for income taxes. Our effective tax rate was 23.7% for the six months ended June 30, 2025 and 25.5% for the six months ended June 30, 2024.
Current wording
Our provision for income taxes for the three months ended September 30, 2025 totaled $12.7 million compared to $9.7 million for the three months ended September 30, 2024, an increase of $3.0 million, or 31.0%. The increase in income tax expense was principally due to an increase in net income before provision for income taxes. Our effective tax rate was 25.5% for the three months ended September 30, 2025 and 24.3% for the three months ended September 30, 2024.
Previous wording
Our provision for income taxes for the three months ended June 30, 2025 totaled $8.8 million compared to $10.4 million for the three months ended June 30, 2024, a decrease of $1.6 million, or 15.3%. The decrease in income tax expense was principally due to a higher discrete income tax benefit due to the exercise of stock options and vesting of restricted shares. Our effective tax rate was 22.7% for the three months ended June 30, 2025 and 26.0% for the three months ended June 30, 2024.
Current wording
Our provision for income taxes for the nine months ended September 30, 2025 totaled $30.8 million compared to $30.3 million for the nine months ended September 30, 2024, an increase of $513,000 or 1.7%. The increase in income tax expense was principally due to an increase in net income before provision for income taxes. Our effective tax rate was 24.4% for the nine months ended September 30, 2025 and 25.1% for the nine months ended September 30, 2024.
Previous wording
Our total assets increased by $223.7 million, or 2.4%, to $9.7 billion at June 30, 2025 compared to $9.5 billion at December 31, 2024. The increase in total assets was primarily due to an increase of $421.2 million in loans and leases, or 6.1%, from $6.9 billion at December 31, 2024 to $7.3 billion at June 30, 2025, and an increase in securities available for sale of $159.5 million, or 11.3%. Our originated loan and lease portfolio increased by $362.2 million and our purchased credit deteriorated loans and acquired non-credit-deteriorated loans and leases portfolio increased by $59.0 million. The increase in our originated portfolio was primarily attributed to the growth in the commercial and industrial and commercial real estate portfolios. The increase in our purchased credit deteriorated loans and acquired non-credit-deteriorated loans and leases portfolio was attributed to the First Security acquisition.
Current wording
Our total assets increased by $315.8 million, or 3.3%, to $9.8 billion at September 30, 2025 compared to $9.5 billion at December 31, 2024. The increase in total assets was primarily due to an increase of $533.9 million in loans and leases, or 7.7%, from $6.9 billion at December 31, 2024 to $7.4 billion at September 30, 2025, and an increase in securities available for sale of $96.5 million, or 6.8%. Our originated loan and lease portfolio increased by $513.6 million and our purchased credit deteriorated loans and acquired non-credit-deteriorated loans and leases portfolio increased by $20.3 million. The increase in our originated portfolio was primarily attributed to the growth in the commercial and industrial and commercial real estate portfolios. The increase in our purchased credit deteriorated loans and acquired non-credit-deteriorated loans and leases portfolio was attributed to the acquisition of First Security.
Previous wording
Total liabilities increased by $122.8 million, or 1.5%, to $8.5 billion at June 30, 2025 compared to $8.4 billion at December 31, 2024. Total deposits increased by $351.9 million, or 4.7%, driven by the First Security acquisition, and growth in money market accounts, offset by decreases to time deposits. Other borrowings decreased by $204.7 million, or 33.1%, mainly due to decreased FHLB advances.
Current wording
Total liabilities increased by $169.7 million, or 2.0%, to $8.6 billion at September 30, 2025 compared to $8.4 billion at December 31, 2024. Total deposits increased by $369.6 million, or 5.0%, driven by the First Security acquisition, and growth in money market accounts, offset by decreases to time deposits. Other borrowings decreased by $257.5 million, or 41.6%, mainly due to decreased FHLB advances.
Previous wording
Securities available-for-sale increased by $159.5 million, or 11.3%, from $1.4 billion at December 31, 2024 to $1.6 billion at June 30, 2025. The increase was primarily attributed to the First Security acquisition, increases in fair value, and purchases of securities.
Current wording
Securities available-for-sale increased by $96.5 million, or 6.8%, from $1.4 billion at December 31, 2024 to $1.5 billion at September 30, 2025. The increase was primarily attributed to purchases of securities, the First Security acquisition, and increases in fair value.
Previous wording
During the six months ended June 30, 2025, our last remaining held-to-maturity security, which was carried at amortized cost, matured. Securities held-to-maturity were $605,000 at December 31, 2024.
Current wording
During the nine months ended September 30, 2025, our last remaining held-to-maturity security, which was carried at amortized cost, matured. Securities held-to-maturity were $605,000 at December 31, 2024.
Previous wording
Certain securities in unrealized loss positions have fair values less than amortized cost and, therefore, contain unrealized losses. At June 30, 2025, we evaluated the securities that had an unrealized loss for credit losses and determined there were none. There were 298 investment securities with unrealized losses at June 30, 2025. We anticipate full recovery of amortized cost with respect to these securities by maturity, or sooner in the event of a more favorable market interest rate environment. We do not intend to sell these securities and it is not more likely than not that we will be required to sell them before recovery of their amortized cost basis, which may be at maturity.
Current wording
Certain securities in unrealized loss positions have fair values less than amortized cost and, therefore, contain unrealized losses. At September 30, 2025, we evaluated the securities that had an unrealized loss for credit losses and determined there were none. There were 252 investment securities with unrealized losses at September 30, 2025. We anticipate full recovery of amortized cost with respect to these securities by maturity, or sooner in the event of a more favorable market interest rate environment. We do not intend to sell these securities and it is not more likely than not that we will be required to sell them before recovery of their amortized cost basis, which may be at maturity.
Previous wording
Total non-taxable securities classified as obligations of states, municipalities and political subdivisions were $53.5 million at June 30, 2025, a decrease of $85,000 from December 31, 2024.
Current wording
Total non-taxable securities classified as obligations of states, municipalities and political subdivisions were $53.5 million at September 30, 2025, a decrease of $1.0 million from December 31, 2024.
Previous wording
As a member of the FHLB system, Byline Bank is required to maintain an investment in the capital stock of the FHLB. No market exists for this stock, and it has no quoted market value. The stock is redeemable at par by the FHLB and is, therefore, carried at cost. In addition, Byline Bank owns stock of Bankers’ Bank that was acquired as part of a bank acquisition. The stock is redeemable at par and carried at cost. As of June 30, 2025 and December 31, 2024, we held $18.6 million and $27.5 million, respectively, in FHLB and Bankers’ Bank stock. We evaluate impairment of our investment in FHLB and Bankers’ Bank based on the ultimate recoverability of the par value rather than by recognizing temporary declines in value. We did not identify any indicators of impairment of FHLB and Bankers’ Bank stock as of June 30, 2025 and December 31, 2024.
Current wording
As a member of the FHLB system, Byline Bank is required to maintain an investment in the capital stock of the FHLB. No market exists for this stock, and it has no quoted market value. The stock is redeemable at par by the FHLB and is, therefore, carried at cost. In addition, Byline Bank owns stock of Bankers’ Bank that was acquired as part of a bank acquisition. The stock is redeemable at par and carried at cost. As of September 30, 2025 and December 31, 2024, we held $15.9 million and $27.5 million, respectively, in FHLB and Bankers’ Bank stock. We evaluate impairment of our investment in FHLB and Bankers’ Bank based on the ultimate recoverability of the par value rather than by recognizing temporary declines in value. We did not identify any indicators of impairment of FHLB and Bankers’ Bank stock as of September 30, 2025 and December 31, 2024.
Previous wording
Lending-related income is the most important component of our net interest income and is the main driver of the results of our operations. Total loans and leases at June 30, 2025 and December 31, 2024 were $7.3 billion and $6.9 billion, respectively, an increase of $421.2 million, or 6.1%. Originated loans and leases were $6.6 billion at June 30, 2025, an increase of $362.2 million, or 5.8%, compared to $6.2 billion at December 31, 2024. Purchased credit deteriorated loans and acquired non-credit-deteriorated loans and leases were $722.0 million at June 30, 2025, an increase of $59.0 million, or 8.9%, compared to $663.0 million at December 31, 2024. The increase in our originated portfolio was primarily attributed to organic loan and lease growth, and renewals of acquired loans and leases that are now reflected with originated loans. The increase in the purchased credit deteriorated and acquired non-credit-deteriorated loan and lease portfolio was driven by the First Security acquisition.
Current wording
Lending-related income is the most important component of our net interest income and is the main driver of the results of our operations. Total loans and leases at September 30, 2025 and December 31, 2024 were $7.4 billion and $6.9 billion, respectively, an increase of $533.9 million, or 7.7%. Originated loans and leases were $6.8 billion at September 30, 2025, an increase of $513.6 million, or 8.2%, compared to $6.2 billion at December 31, 2024. Purchased credit deteriorated loans and acquired non-credit-deteriorated loans and leases were $683.4 million at September 30, 2025, an increase of $20.3 million, or 3.1%, compared to $663.0 million at December 31, 2024. The increase in our originated portfolio was primarily attributed to organic loan and lease growth, and renewals of acquired loans and leases that are now reflected with originated loans. The increase in the purchased credit deteriorated and acquired non-credit-deteriorated loan and lease portfolio was driven by the First Security acquisition.
Previous wording
We strive to maintain a relatively diversified loan portfolio to help reduce the risk inherent in concentration in certain types of collateral. Loans, excluding leases, are typically made to real estate, manufacturing, wholesale, retail and service businesses for working capital needs, business expansions and operations. As of June 30, 2025, the loan portfolio included $425.1 million of unguaranteed 7(a) SBA and USDA loans with exposure to the following top three industries: 20.5% retail trade, 13.2% accommodation and food services, and 8.9% manufacturing. The following table shows our allocation of originated, purchase credit deteriorated and acquired non-credit-deteriorated loans and leases as of the dates presented (dollars in thousands):
Current wording
We strive to maintain a relatively diversified loan portfolio to help reduce the risk inherent in concentration in certain types of collateral. Loans, excluding leases, are typically made to real estate, manufacturing, wholesale, retail and service businesses for working capital needs, business expansions and operations. As of September 30, 2025, the loan portfolio included $428.2 million of unguaranteed 7(a) SBA and USDA loans with exposure to the following top three industries: 20.6% retail trade, 13.4% accommodation and food services, and 8.3% health care and social assistance. The following table shows our allocation of originated, purchase credit deteriorated and acquired non-credit-deteriorated loans and leases as of the dates presented (dollars in thousands):
Previous wording
Loans collateralized by real estate include: commercial real estate, residential real estate, and construction, land development, and other land. In the aggregate, loans collateralized by real estate comprised 50.6% and 51.6% of the total loan and lease portfolio at June 30, 2025 and December 31, 2024, respectively.
Current wording
Loans collateralized by real estate include: commercial real estate, residential real estate, and construction, land development, and other land. In the aggregate, loans collateralized by real estate comprised 50.3% and 51.6% of the total loan and lease portfolio at September 30, 2025 and December 31, 2024, respectively.
Showing the first 40 of 71 pairs. Open the source sections for the rest.
Rearranged previous paragraphs (2)
Previous report — wording carried elsewhere
The ACL is determined by us on a quarterly basis, although we are engaged in monitoring the appropriate level of the allowance on a more frequent basis. The ACL reflects management’s estimate of current expected credit losses inherent in the loan and lease portfolios. The computation includes elements of judgment and high levels of subjectivity.
Previous report — wording carried elsewhere
We assess the ACL based on three categories: (i) originated loans and leases, (ii) acquired non-credit-deteriorated loans and leases, and (iii) purchased credit deteriorated loans.