EarningsQ3 2026 Earnings Report
DE:44F Q3 2026 EPS Results
Actual EPS€0.84
Consensus EPS€0.74
Beat/MissBeat by +€0.11
One Year Ago EPS€0.75
DE:44F Q3 2026 Revenue Results
Actual Revenue€147.97M
Expected Revenue€105.06M
Beat/MissBeat by +€42.91M
YoY Revenue Growth+0.11%
Earnings Announcement Details
QuarterQ3 2026
Date10/22/2026
TimeAfter Close
Conference CallThursday, October 22, 2026
DE:44F Upcoming Earnings
Byline Bancorp's next earnings date is estimated for January 28, 2027, based on past reporting schedules.
Q3 2026 Earnings Call Audio
DE:44F Q3 2026 Earnings Call
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Q3 2026 Earnings Slide Deck
Q3 2026 Earnings Call Summary
Earnings Call Sentiment|Positive
The call was strongly positive overall. Management reported record revenue and net income, expanding net interest margin, solid deposit growth, strong capital ratios, increased shareholder returns, improving criticized and classified loans, and progress toward the Illinois State Bancorp acquisition and the $10 billion asset threshold. The main challenges were elevated loan payoffs, higher credit costs and nonperforming loans, increased near-term expenses, lower expected fourth-quarter noninterest income, and uncertainty around real estate activity and deposit pricing. Management nevertheless maintained constructive growth expectations and expressed confidence in its balance sheet, pipeline, capital position, and leadership succession plan.Company Guidance
Record Net Income, Revenue, and EPS Growth
Third-quarter net income was a record $41.8 million, or $0.94 per diluted share, compared with $40.2 million and $0.90 last quarter. EPS increased 4% linked quarter and approximately 15% year over year. Revenue reached a record $121 million, up 3% from the second quarter, with growth in both net interest income and noninterest income.
Strong Profitability and Efficiency
Third-quarter ROA was 167 basis points, ROTCE was just under 15%, and pretax pre-provision ROA was 245 basis points. The efficiency ratio was 48.4%, improving 260 basis points year over year, while noninterest expense to average assets improved 8 basis points year over year to 2.39%.
Deposit Growth and Lower Wholesale Funding
Deposits increased $168 million, or 8.5% annualized, to $8 billion. Management said growth was driven by interest checking and DDA balances, with noninterest-bearing deposits also moving higher. The growth allowed the company to reduce wholesale funding, including approximately $80 million of broker deposits, and improved the loan-to-deposit ratio to 93.2% from 96.1%.
Record Net Interest Income and Expanded Margin
Net interest income reached a record $103.7 million, up 3% from the prior quarter, primarily due to higher income from investment securities, reduced wholesale funding costs, and an additional day in the quarter. Net interest margin increased 5 basis points to 4.33%, while NIM excluding accretion increased 10 basis points linked quarter.
Strong Loan Origination Activity
New loan originations totaled $362 million, up $129 million or 55% linked quarter. Management said origination activity remained strong, credit demand looked broadly acceptable in the market, and pipelines remained healthy.
Improved Criticized and Classified Loans
Criticized and classified loans declined to 3.1% of total loans from 3.9% last quarter, marking the third consecutive quarterly decline.
Strong Capital Position and Capital Returns
Capital ratios remained well above regulatory requirements. CET1 increased 37 basis points to 13.29%, while the TCE ratio was 11.12%, up 34 basis points year over year. The company repurchased approximately 522,000 shares totaling $20.2 million and increased its quarterly cash dividend by 16.7% to $0.14 per share.
Execution Across Capital Priorities
Management said it executed across all four capital priorities during the quarter: supporting organic growth, increasing the dividend, deploying capital toward M&A, and returning capital through share repurchases.
Illinois State Bancorp Acquisition
Byline announced a definitive agreement to acquire Illinois State Bancorp. Management said the transaction is expected to solidify market presence in parts of the city where Byline is not currently present, add customer relationships, and provide a source of core deposits and funding. Management also said the M&A environment remains constructive and that additional opportunities remain.
Progress Toward the $10 Billion Asset Threshold
Assets ended the quarter just below $10 billion. Management expects to cross the $10 billion threshold in 2027, which it said would defer the impact of Durbin until the second half of 2028. The company said it is prepared to operate above $10 billion in assets.
Positive Loan Growth Outlook
Despite elevated payoff activity and balance-sheet management to remain below $10 billion through year-end 2026, management maintained its expectation for mid-single-digit loan growth into 2027. Growth is expected to come from C&I, sponsor banking, SBA, leasing, and potentially commercial real estate.
Leadership Development and Succession Planning
Byline was named one of American Banker's 2026 Best Banks to Work For, based significantly on employee feedback. Management said it remains focused on developing employees, creating internal opportunities, and strengthening its leadership bench for $10 billion and beyond. Scott Hawthorne, currently deputy chief credit officer, will succeed Mark Fucinato as chief credit officer in early 2027.
Tax Rate Improvement
The company purchased tax credits during the third quarter, reducing its effective tax rate to 23.3% from 25.7% in the prior quarter. Management currently estimates an annual effective tax rate of approximately 25.5% for 2027.
Expected Fourth-Quarter Net Interest Income
Fourth-quarter net interest income is expected to be in the $103 million to $105 million range. Management said higher rates later in the quarter were not yet fully reflected and could provide a tailwind into the fourth quarter and 2027.
Ongoing Focus on Operating Leverage
Management said it continues to focus on revenue growth exceeding expense growth, improving efficiency, and reducing the cost-to-assets ratio. The company still expects its full-year efficiency ratio to be at or below 50%.
Stable Credit Reserves for Identified Nonaccrual Relationships
Management said the two relationships that moved to nonaccrual status were well reserved or properly reserved. One was in the solar industry and was expected to be resolved early next year; the other involved a company that purchases distressed credit card consumer debt.
DE:44F Earnings History
The table shows recent earnings report dates and whether the forecast was beat or missed. See the change in forecast and EPS from the previous year.
Beat
Missed