Byline Bancorp Reports $30.1 Million Net Income for Q2 2025, Acquires First Security Bancorp

Byline Bancorp, Inc. reported a consolidated net income of $30.1 million for the three months ended June 30, 2025, reflecting a slight increase from $29.7 million in the same period last year. This translates to earnings of $0.66 per diluted share, down from $0.68 per share in the prior year. The increase in net income was primarily driven by a $9.4 million rise in net interest income, which reached $96.0 million, and a $1.6 million increase in non-interest income, totaling $14.5 million. However, these gains were offset by a $6.4 million rise in non-interest expenses and a $5.9 million increase in the provision for credit losses, which amounted to $11.9 million for the quarter.

For the six months ending June 30, 2025, net income decreased to $58.3 million from $60.1 million year-over-year, with diluted earnings per share falling to $1.30 from $1.37. The decline in net income was attributed to a $9.0 million increase in non-interest expenses and an $8.4 million rise in the provision for credit losses, despite a $12.1 million increase in net interest income. The company’s total assets increased by 2.4% to $9.7 billion, driven by a 6.1% rise in loans and leases, which reached $7.3 billion, and an 11.3% increase in securities available for sale.

Strategically, Byline Bancorp completed the acquisition of First Security Bancorp on April 1, 2025, which contributed to the growth in its loan portfolio. The acquisition added approximately $41.5 million in goodwill and resulted in a $3.2 million provision for credit losses related to acquired loans. The company also reported a significant increase in its customer base, with total deposits rising to $7.8 billion, a 4.7% increase from the previous period, largely due to the acquisition and growth in money market accounts.

Operationally, Byline Bancorp's efficiency ratio was 52.61% for the second quarter of 2025, slightly higher than the 52.19% reported in the same quarter of 2024. The adjusted efficiency ratio improved to 48.20% from 52.19% year-over-year. The company’s allowance for credit losses increased to $107.7 million, or 1.47% of total loans, reflecting the impact of the First Security acquisition and broader economic conditions. Looking ahead, Byline Bancorp anticipates continued growth in its loan portfolio and expects to manage its credit losses effectively, although it acknowledges potential challenges from macroeconomic factors.