Byline Bancorp, Inc. (BY): History, Ownership, Mission, How It Works & Makes Money

How does a regional player like Byline Bancorp, Inc. (BY) consistently deliver value in a tight credit market, especially after reporting $37.2 million in net income for the third quarter of 2025? This Chicago-based institution, which manages approximately $9.8 billion in total assets as of September 30, 2025, isn't just a community bank; it's a top Small Business Administration (SBA) lender that's defintely mastered the commercial and industrial loan space. We'll cut through the balance sheet jargon to show you exactly how Byline Bancorp makes its money-from its history of strategic acquisitions to its current, profitable model-so you can map out your next investment decision with clarity.

Byline Bancorp, Inc. (BY) History

Byline Bancorp, Inc. (BY) is a Chicago-based bank holding company with roots tracing back over a century, but its modern form started with a critical recapitalization. You need to understand that the bank's current identity is less about its 1914 origin and more about the 2013 turnaround that reset its financial foundation and strategy.

Given Company's Founding Timeline

While the bank's subsidiary, Byline Bank, holds a charter dating back to 1914, the corporate entity's modern trajectory began with a significant acquisition and rebranding.

Year established

The predecessor, Metropolitan Bank Group, was founded in 1978 following the purchase of North Community Bank. The current holding company, Byline Bancorp, Inc., was established in 2015, following its 2013 recapitalization.

Original location

Chicago, Illinois. The company remains headquartered in Chicago, focusing its operations primarily across the Chicago and Milwaukee metropolitan areas.

Founding team members

The original 1978 founding was by the Fasseas family, who grew the bank's branch network significantly. The transformative leadership team that created the modern Byline Bancorp in 2013 was led by Roberto Herencia, who headed BXM Holdings LLC, and later became Executive Chairman and CEO.

Initial capital/funding

The most crucial 'initial' funding for the current structure was the 2013 recapitalization, where BXM Holdings LLC, led by Roberto Herencia, injected $207 million into the bank's predecessor. This massive capital infusion was the real start of the modern Byline Bancorp.

Given Company's Evolution Milestones

The company's evolution is a story of community banking growth, a financial crisis near-death experience, and a strategic, capital-driven rebirth that focused on acquisitions and commercial lending, especially Small Business Administration (SBA) loans.

Given Company's Transformative Moments

The company's history is marked by three major shifts: the initial community banking expansion, the post-crisis financial collapse, and the current era of aggressive, strategic growth through mergers and acquisitions (M&A). This last phase is defintely what defines Byline Bancorp today.

• The 2013 Recapitalization: The $207 million investment by BXM Holdings LLC was a fundamental reset. It replaced the distressed capital structure and installed the current, seasoned management team, pivoting the focus from a sprawling, troubled community bank to a commercially-focused institution.
• The M&A-Driven Expansion: Post-IPO, Byline Bancorp has used acquisitions to rapidly scale its asset base and geographic reach. The 2023 merger with Inland Bancorp, Inc. was a major step, increasing total assets to about $8.7 billion. The 2025 acquisition of First Security Bancorp, Inc. continued this trend, strengthening the loan and lease portfolio.
• Q3 2025 Record Performance: The company reported a net income of $37.2 million for the third quarter of 2025, a significant jump from the previous quarter. This performance, alongside total assets reaching $9.8 billion as of September 30, 2025, shows the successful execution of the post-recapitalization strategy. Here's the quick math: the net interest margin (NIM) expanded to 4.27% in Q3 2025, demonstrating strong profitability from their core lending activities.

If you want to dive deeper into who is betting on this growth story, you should read Exploring Byline Bancorp, Inc. (BY) Investor Profile: Who's Buying and Why?

Byline Bancorp, Inc. (BY) Ownership Structure

Byline Bancorp, Inc.'s control is highly concentrated among institutional investors and company insiders, which significantly influences the board and strategic direction, particularly in its commercial banking focus.

This structure means a smaller public float (the shares available for trading) and aligns management's interests closely with the bank's long-term performance, but it also means fewer shares are available for general market liquidity.

Byline Bancorp, Inc.'s Current Status

Byline Bancorp, Inc. is a publicly traded bank holding company, listed on the New York Stock Exchange (NYSE) under the ticker symbol BY.

As of the third quarter of 2025, the company reported total assets of approximately $9.8 billion, solidifying its position as a major commercial bank in the Chicago and Milwaukee metropolitan areas.

The company maintains its headquarters in Chicago, Illinois, and operates through its subsidiary, Byline Bank, which is a top Small Business Administration (SBA) lender in the United States.

Byline Bancorp, Inc.'s Ownership Breakdown

The ownership structure, based on the latest available 2025 fiscal year data, shows a clear majority held by large institutional funds, a common characteristic for stable financial institutions.

Here's the quick math on who owns the shares as of November 2025:

Institutional ownership at 67.73% gives these large funds significant voting power, so tracking their sentiment and trading activity is crucial for any investor.

Byline Bancorp, Inc.'s Leadership

The organization is steered by a seasoned executive team, with many leaders having deep roots in the banking industry and a history of working together, which helps execution stability.

The key leaders driving the company's strategy-detailed further in the Mission Statement, Vision, & Core Values of Byline Bancorp, Inc. (BY)-are:

• Roberto R. Herencia: Executive Chairman of the Board of Directors and Chief Executive Officer (CEO). He has served as CEO since February 2021 and Chairman since June 2013, providing long-term strategic continuity.
• Alberto J. Paracchini: President and Director of Byline Bancorp, Inc., also serving as President, CEO, and Director of Byline Bank.
• Thomas J. Bell: Executive Vice President, Chief Financial Officer (CFO), and Treasurer. He manages the financial reporting and capital structure, a critical role given the current interest rate environment.
• Brian F. Doran: Executive Vice President, General Counsel. He joined in January 2025 to oversee the legal function and corporate governance, bringing over 35 years of legal experience.

This leadership structure, combining a long-standing Executive Chairman/CEO with a dedicated President, is designed to ensure both high-level strategy and day-to-day operational focus.

Byline Bancorp, Inc. (BY) Mission and Values

Byline Bancorp, Inc. stands for more than just Chicago-area banking; its mission is rooted in empowering customers and cultivating a truly collaborative culture, all while delivering long-term value to its stakeholders. This focus on people-customers, employees, and community-is the core of its cultural DNA, which is why they were named one of Chicago's Best Workplaces for 2025, ranking 5th among large companies.

You're looking for a bank that puts its capital to work in ways that align with its stated purpose, and Byline Bancorp, Inc. definitely shows its commitment. For instance, as of late 2024, the company committed over $129.9 million in community-development loans and another $102.5 million in total community-development investments.

Byline Bancorp, Inc.'s Core Purpose

The company's commitment extends beyond its $9.8 billion in total assets as of September 30, 2025, translating into specific, measurable actions that support its communities. Their core purpose is to be the bank that helps both businesses and individuals write their own financial stories, not just manage a balance sheet. Honestly, that's how you build real, defensible customer relationships. Mission Statement, Vision, & Core Values of Byline Bancorp, Inc. (BY).

Official Mission Statement

The official mission statement is a clear three-part mandate that balances shareholder value with cultural and community impact. It's a pragmatic approach that ties profit to purpose.

• Produce long-term value for stockholders.
• Empower customers to bank how they want to bank.
• Cultivate an innovative and collaborative culture.
• Contribute to communities in a meaningful way.

Vision Statement

The vision is ambitious, mapping out a future where financial access is universal and the company's impact is generational. This is a long game, not a quick trade.

• Build a future where all people in their communities have access to the financial tools to build the life of their dreams.
• Help businesses connect to the people that matter most and rise alongside them.
• Leave the world a better place for generations through sustained commitment to stakeholders and the environment.

Byline Bancorp, Inc. Slogan/Tagline

While the company doesn't use a single, mandated slogan in the traditional sense, their brand messaging centers on partnership and empowerment. It's all about being a partner, not just a provider.

• Write your financial story.
• We're more than just a bank; we're a partner in building your story.
• Building the bank you deserve.

Core Values (The Things That Matter)

Byline Bancorp, Inc. calls its core values the 'Things That Matter' (TTMs), which are the behavioral guideposts for its over 1,000 employees. They show a bias for action and a realist's appreciation for data.

• Our people: Treat one another with respect; they are the greatest asset.
• Think like an owner: Be frugal, take ownership, and present new ideas.
• Obsess about our customers: Go to extraordinary lengths to convert customers into fans.
• Know the numbers: Facts matter because you defintely don't know the business without them.
• Insist on excellence: Maintain the highest ethical standards in everything.
• Fast is better than slow: Speed matters in business; get it done.
• Embrace change: Change is constant, and without it, there is no growth.
• Inspire: Respect, challenge, and collaborate, recognizing teamwork as the greatest strength.

Byline Bancorp, Inc. (BY) How It Works

Byline Bancorp, Inc. operates as a commercial-focused community bank, primarily generating revenue by taking in customer deposits and then deploying those funds into a diversified portfolio of loans and leases, particularly for small- and medium-sized businesses in the Chicago and Milwaukee metropolitan areas. Its core value creation stems from the spread between the interest earned on its $7.5 billion loan portfolio and the interest paid on its $7.8 billion in deposits, which drove a Q3 2025 net interest margin of 4.27%.

Given Company's Product/Service Portfolio

Given Company's Operational Framework

The operational framework is built around a centralized commercial banking model with a strong regional footprint, allowing for high-touch customer relationships while maintaining efficiency. The bank's value creation process is defintely straightforward, focusing on three key pillars.

• Deposit Gathering: Maintain a stable, low-cost deposit base of approximately $7.8 billion as of Q3 2025, sourced through over 40 branch locations across the Chicago and Milwaukee metropolitan areas, plus digital channels.
• Strategic Lending: Focus lending on commercial and industrial clients, which are typically higher-yielding than residential mortgages, plus a major emphasis on the high-fee, government-guaranteed SBA loan market. Loan growth reached 11% year-to-date in 2025.
• Efficiency and Integration: Drive down operating costs through disciplined expense management, reflected in a strong Q3 2025 efficiency ratio of 51.00%. This includes the seamless integration of acquired banks, like the First Security Bancorp acquisition completed in Q2 2025, to expand market share quickly.

Here's the quick math: The Q3 2025 net interest income of $99.9 million is the primary engine, supported by a healthy $15.9 million in non-interest income from fees, wealth management, and loan sales.

Given Company's Strategic Advantages

Byline Bancorp's market success is rooted in its specialized lending expertise and its entrenched position in a major US economic hub, which provides a natural competitive moat against national banks. You can get a deeper dive into the numbers in Breaking Down Byline Bancorp, Inc. (BY) Financial Health: Key Insights for Investors.

• SBA Lending Market Leadership: Recognized as the most active 7(a) lender in Illinois for the fiscal year ended September 30, 2025, providing a consistent source of high-margin, government-guaranteed loan origination and sale income.
• Chicago Market Concentration: As the second-largest bank headquartered in Chicago, it benefits from deep local knowledge and established commercial relationships, which is a major barrier to entry for competitors.
• Robust Capital Position: Maintains a strong capital buffer, with a Common Equity Tier 1 (CET1) ratio of 12.15% in Q3 2025, well above regulatory minimums, allowing for opportunistic acquisitions and continued loan growth.
• Diversified Revenue Streams: A balanced mix of traditional commercial lending, specialized SBA and equipment leasing, and non-interest income from wealth management and loan sales mitigates risk from any single economic downturn.

Still, the bank must manage its interest expense, which totaled $143.9 million for the nine months ended September 30, 2025. What this estimate hides is the ongoing cost of funding in a competitive deposit environment.

Byline Bancorp, Inc. (BY) How It Makes Money

Byline Bancorp, Inc. (BY) primarily makes money by acting as a traditional commercial bank, lending out capital at higher interest rates than what it pays on deposits, a core function known as generating net interest income. Additionally, the company earns significant non-interest income from fees, particularly from its specialty in originating and selling U.S. government-guaranteed small business loans.

Given Company's Revenue Breakdown

For the third quarter of 2025, Byline Bancorp reported total revenue of approximately $116 million, demonstrating a strong reliance on its lending activities. Here is how that revenue breaks down:

Net Interest Income (NII) for Q3 2025 was $99.9 million, an increase of 4.1% from the prior quarter, driven by growth in the loan portfolio and lower deposit costs. Non-Interest Income came in at $15.9 million, which saw a larger quarterly jump of 9.5%, mainly due to higher net gains on the sales of loans.

Business Economics

The financial engine of a bank like Byline Bancorp hinges on managing its Net Interest Margin (NIM) and maintaining a low-cost deposit base. The company's strategy focuses on commercial banking, which typically offers higher-yielding assets than plain consumer lending.

• Net Interest Margin (NIM): The NIM is the core profitability metric, showing the difference between interest earned on assets (like loans) and interest paid on liabilities (like deposits). For Q3 2025, Byline Bancorp's NIM was a robust 4.27%, which expanded by nine basis points (bps) from the second quarter. This is a sign of effective asset-liability management, meaning they are getting higher yields on their loans and managing to keep their cost of funding (deposits) down.
• Loan Pricing Strategy: A major component of their non-interest income is the origination and sale of U.S. Small Business Administration (SBA) loans. They generate fees and premium gains by selling the guaranteed portion of these loans, which totaled $92.9 million in sales volume during Q3 2025. This strategy provides a predictable, high-margin fee stream that supplements traditional NII.
• Cost Management: The efficiency ratio, which measures non-interest expense as a percentage of total revenue, is a key indicator of operational health. A lower number is better. Byline Bancorp's efficiency ratio improved to 51.00% in Q3 2025, showing they are keeping expenses well-managed as revenue grows. That's a defintely solid number for a regional bank.

Given Company's Financial Performance

The company's performance in the third quarter of 2025 highlights a strong execution on its commercial banking strategy, particularly in the Chicago market. Total assets reached $9.8 billion as of September 30, 2025, pushing the bank closer to the significant $10 billion threshold that triggers increased regulatory scrutiny. Loan growth was substantial, with the total loan and lease portfolio reaching $7.5 billion, representing a 6% increase linked-quarter.

• Profitability Metrics: Net income for the quarter was $37 million, translating to diluted earnings per share (EPS) of $0.82. The Return on Tangible Common Equity (ROTCE) was a very strong 15.1%.
• Credit Quality: Credit metrics saw improvement, which is a positive sign in an uncertain economic environment. The provision for credit losses dropped to $5.3 million in Q3 2025, down significantly from the prior quarter, due to fewer troubled loans and increased recoveries. Non-performing assets (NPAs) also decreased to 0.69% of total assets.
• Capital Strength: The Common Equity Tier 1 (CET1) capital ratio surpassed 12%, indicating a robust capital base that supports continued growth and potential acquisitions. For a deeper dive into who is buying the stock and why, check out Exploring Byline Bancorp, Inc. (BY) Investor Profile: Who's Buying and Why?.

Here's the quick math: the bank's core business is sound, with NII driving the majority of profit, but the fee-based income from loan sales provides a powerful, high-growth kicker.

Byline Bancorp, Inc. (BY) Market Position & Future Outlook

Byline Bancorp, Inc. (BY) is strategically positioned as a highly focused commercial bank in the Chicago and Milwaukee metropolitan areas, with a clear emphasis on profitable, specialized lending segments. The company's trajectory is defined by its disciplined acquisition strategy-such as the First Security Bancorp, Inc. deal closed in April 2025-and its robust commercial and industrial (C&I) loan growth, which drove net income to $37.2 million in the third quarter of 2025.

The core of its future growth hinges on leveraging its market leadership in Small Business Administration (SBA) lending and expanding its equipment leasing business, all while maintaining a strong capital position; its Common Equity Tier 1 (CET1) ratio surpassed 12% in Q3 2025.

Competitive Landscape

In the highly fragmented Chicago Metropolitan Statistical Area (MSA), Byline Bancorp competes not just with national giants but also with large, aggressive regional banks. The total deposit market in the Chicago MSA is approximately $596 billion, so even a small percentage represents significant scale.

Opportunities & Challenges

The bank's strategic focus on commercial and industrial (C&I) lending, which accounts for over 39% of its loan portfolio, offers a higher yield but also carries distinct risks compared to traditional residential lending.

Industry Position

Byline Bancorp is a solid, mid-sized regional bank that is defintely punching above its weight in niche markets. Its total assets of $9.8 billion as of September 30, 2025, place it firmly in the regional bank category, but its profitability metrics are often top-quartile for its peer group.

• Commercial Specialization: The bank's commitment to being the 'preeminent commercial bank in Chicago' is validated by its market-leading SBA 7(a) lending volume in Illinois.
• Efficiency: The efficiency ratio improved to 51.00% in Q3 2025, a strong indicator of controlled non-interest expenses and efficient operations, beating the national average for similarly sized banks.
• Capital Strength: With a Common Equity Tier 1 (CET1) ratio exceeding 12% in the third quarter of 2025, Byline maintains a fortress balance sheet, providing dry powder for future M&A or to weather a credit cycle.

For a deeper dive into the institutional money backing this strategy, you should check out Exploring Byline Bancorp, Inc. (BY) Investor Profile: Who's Buying and Why?