Byline Bancorp Reports $28.2 Million Net Income in Q1 2025, Acquires First Security Bancorp

Byline Bancorp, Inc. reported a consolidated net income of $28.2 million for the first quarter of 2025, translating to earnings of $0.65 per basic share and $0.64 per diluted share. This marks a decrease from the $30.4 million, or $0.70 per share, reported in the same period last year. The decline in net income is attributed to a $2.6 million increase in non-interest expenses, primarily driven by higher salaries and employee benefits, and a $2.5 million increase in the provision for credit losses. However, net interest income rose by $2.7 million, benefiting from lower interest expenses on deposits and borrowings.

Total assets for Byline Bancorp increased to $9.6 billion as of March 31, 2025, up from $9.5 billion at the end of 2024. This growth was primarily fueled by a $119 million increase in total loans and leases, which reached $7.0 billion, and an $122 million rise in securities available-for-sale. The company’s loan portfolio saw a notable increase in originated loans, particularly in the commercial and industrial sector, while purchased credit deteriorated loans decreased.

In terms of operational metrics, Byline Bancorp's total deposits rose to $7.6 billion, reflecting a $94.7 million increase from the previous quarter. This growth was largely driven by an increase in interest-bearing checking accounts and money market demand accounts. The company’s efficiency ratio for the quarter was reported at 53.66%, compared to 51.94% in the prior year, indicating a rise in operational costs relative to income.

Strategically, Byline Bancorp completed the acquisition of First Security Bancorp, Inc. on April 1, 2025, which is expected to enhance its market presence and operational capabilities. The acquisition added approximately $313.4 million in total assets and $279.2 million in total deposits to Byline's balance sheet. The company anticipates that this merger will contribute positively to its growth trajectory and financial performance in the coming quarters.

Looking ahead, Byline Bancorp remains focused on managing its credit risk and optimizing its loan portfolio while navigating the evolving economic landscape. The company expects to maintain its strong capital position, with a common equity tier 1 capital ratio of 11.78% as of March 31, 2025, exceeding regulatory requirements. Management is optimistic about future growth opportunities, particularly in the commercial lending space, and is committed to enhancing shareholder value through strategic initiatives and prudent financial management.