BYLINE BANCORP, INC.

Previous wording

Statements contained in this report and in other documents we file with or furnish to the Securities and Exchange Commission (“SEC”) that are not historical facts may constitute “forward-looking statements” within the meaning of the U.S. Private Securities Litigation Reform Act of 1995. Any statements about our expectations, beliefs, plans, strategies, predictions, forecasts, objectives or assumptions of future events or performance are not historical facts and may be forward-looking. These statements are often, but not always, made through the use of words or phrases such as “anticipates,” “believes,” “expects,” “can,” “could,” “may,” “predicts,” “potential,” “opportunity,” “should,” “will,” “estimate,” “plans,” “projects,” “continuing,” “ongoing,” “expects,” “seeks,” “intends” and similar words or phrases. Accordingly, these statements involve estimates, known and unknown risks, assumptions and uncertainties that could cause actual strategies, actions or results to differ materially from those expressed in such statements, and are not guarantees of future results or other events or performance. Because forward-looking statements are necessarily only estimates of future strategies, actions or results, based on management’s current expectations, assumptions and estimates on the date hereof, and there can be no assurance that actual strategies, actions or results will not differ materially from expectations, readers are cautioned not to place undue reliance on such statements.

Current wording

Statements contained in this report and in other documents we file with or furnish to the Securities and Exchange Commission ("SEC") that are not historical facts may constitute "forward-looking statements" within the meaning of the U.S. Private Securities Litigation Reform Act of 1995. Any statements about our expectations, beliefs, plans, strategies, predictions, forecasts, objectives or assumptions of future events or performance are not historical facts and may be forward-looking. These statements are often, but not always, made through the use of words or phrases such as "anticipates," "believes," "expects," "can," "could," "may," "predicts," "potential," "opportunity," "should," "will," "estimate," "plans," "projects," "continuing," "ongoing," "expects," "seeks," "intends" and similar words or phrases. Accordingly, these statements involve estimates, known and unknown risks, assumptions and uncertainties that could cause actual strategies, actions or results to differ materially from those expressed in such statements, and are not guarantees of future results or other events or performance. Because forward-looking statements are necessarily only estimates of future strategies, actions or results, based on management’s current expectations, assumptions and estimates on the date hereof, there can be no assurance that actual strategies, actions or results will not differ materially from expectations and readers are cautioned not to place undue reliance on such statements.

Previous wording

legislative or regulatory changes, particularly changes in regulation of financial services companies and/or the products and services offered by financial services companies;

Current wording

legislative or regulatory changes, particularly potential changes in regulation. supervision, examination and enforcement priorities of the federal banking agencies in regard to financial services companies and/or the products and services offered by financial services companies;

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, New Jersey, 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) and 504 lender in Illinois for the fiscal year ended September 30, 2024.

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, Michigan, New Jersey, 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 second most active 7(a) and 504 lender in Illinois for the quarter ended March 31, 2025.

Previous wording

Dividends declared on common shares were $4.0 million and $3.9 million for the three months ended September 30, 2024 and 2023, respectively. Dividends paid on common shares were $3.9 million and $4.1 million for the three months ended September 30, 2024 and 2023, respectively. Dividends declared on common shares were $11.9 million and $10.7 million for the nine months ended September 30, 2024 and 2023, respectively. Dividends paid on common shares were $11.9 million and $10.7 million for the nine months ended September 30, 2024 and 2023, respectively.

Current wording

Dividends declared and paid on common shares were $4.4 million and $3.9 million for the three months ended March 31, 2025 and 2024, respectively.

Previous wording

As of September 30, 2024, we had consolidated total assets of $9.4 billion, total gross loans and leases outstanding of $6.9 billion, total deposits of $7.5 billion, and total stockholders’ equity of $1.1 billion.

Current wording

As of March 31, 2025, we had consolidated total assets of $9.6 billion, total gross loans and leases outstanding of $7.0 billion, total deposits of $7.6 billion, and total stockholders’ equity of $1.1 billion.

Previous wording

First Security Bancorp, Inc. Acquisition

Current wording

First Security Bancorp, Inc. Acquisition Section

Previous wording

On July 1, 2023, we completed our acquisition of Inland Bancorp, Inc., ("Inland") under the terms of a definitive merger agreement. As a result of the merger, Inland's wholly-owned bank subsidiary, Inland Bank and Trust, was merged with and into Byline Bank. Refer to Note 3—Acquisition of a Business of our Unaudited Interim Condensed Financial Statements as of September 30, 2024, which is included in this report, for additional information.

Current wording

On April 1, 2025, we completed our acquisition of First Security Bancorp, Inc. ("First Security") under the terms of a definitive merger agreement. As a result of the merger, First Security's wholly-owned bank subsidiary, First Security Trust and Savings Bank, was merged with and into Byline Bank. As of March 31, 2025, First Security reported approximately $313.4 million in total assets, $156.7 million in total loans, and $279.2 million in total deposits. Refer to Note 3—Acquisition of a Business for additional information.

Previous wording

Our accounting and reporting policies conform to GAAP and to general practices within the banking industry. To prepare financial statements and interim financial statements in conformity with GAAP, management makes estimates, assumptions and judgments based on available information. These estimates, assumptions and judgments affect the amounts reported in the financial statements and accompanying notes, which are based on information available as of the date of the financial statements. As this information changes, actual results could differ from the estimates, assumptions and judgments reflected in the financial statements. In particular, management has identified several accounting policies that, due to the estimates, assumptions and judgments inherent in those policies, are critical in understanding our financial statements.

Current wording

Our accounting and reporting policies conform to accounting principles generally accepted in the United States of America ("GAAP") and to general practices within the banking industry. To prepare financial statements and interim financial statements in conformity with GAAP, management makes estimates, assumptions and judgments based on available information. These estimates, assumptions and judgments affect the amounts reported in the financial statements and accompanying notes, which are based on information available as of the date of the financial statements. As this information changes, actual results could differ from the estimates, assumptions and judgments reflected in the financial statements. In particular, management has identified several accounting policies that, due to the estimates, assumptions and judgments inherent in those policies, are critical in understanding our financial statements.

Previous wording

The following is a discussion of the critical accounting policies and significant estimates that require us to make complex and subjective judgments. Additional information about these policies can be found in Note 1 of our audited Consolidated Financial Statements included in our Annual Report on Form 10-K for the year ended December 31, 2023, that we filed with the SEC on March 4, 2024.

Current wording

The following is a discussion of the critical accounting policies and significant estimates that require us to make complex and subjective judgments. Additional information about these policies can be found in Note 1 of our audited Consolidated Financial Statements included in our Annual Report on Form 10-K for the year ended December 31, 2024, which we filed with the SEC on February 28, 2025.

Previous wording

The ACL is maintained at a level that management believes is appropriate to provide for current expected credit losses as of the dates of the Consolidated Statements of Financial Condition, and we have established methodologies for the determination of its adequacy. The methodologies are set forth in a formal policy and take into consideration relevant available information, from internal and external sources, relating to past events, current conditions, and reasonable and supportable forecasts. We increase our ACL by recording provisions for credit losses against our income and decrease by charge‑offs, net of recoveries.

Current wording

The ACL is maintained at a level that management believes is appropriate to provide for current expected credit losses as of the dates of the Consolidated Statements of Financial Condition, and we have established methodologies for the determination of its adequacy. The methodologies are set forth in a formal policy and take into consideration relevant available information, from internal and external sources, relating to past events, current conditions, and reasonable and supportable forecasts. We increase our ACL by recording provisions for current expected credit losses against our income and decrease by charge‑offs, net of recoveries.

Previous wording

Goodwill represents the excess of the purchase consideration over the fair value of net assets acquired in connection with our recapitalization and acquisitions using the acquisition method of accounting. Goodwill is not amortized but is periodically evaluated for impairment under the provisions of ASC 350.

Current wording

Goodwill. Goodwill represents the excess of the purchase consideration over the fair value of net assets acquired in connection with our recapitalization and acquisitions using the acquisition method of accounting. Goodwill is not amortized but is periodically evaluated for impairment under the provisions of ASC Topic 350, Intangibles—Goodwill and Other ("ASC 350").

Previous wording

Our results of operations depend substantially on net interest income, which is the difference between interest income on interest-earning assets, consisting primarily of interest income on loans and lease receivables, including accretion income on loans, investment securities and other short-term investments, and interest expense on interest-bearing liabilities, consisting primarily of deposits and borrowings. Our results of operations are also dependent upon our generation of non-interest income, consisting primarily of income from fees and service charges on deposits, loan servicing revenue, wealth management and trust income, ATM and interchange fees, and net gains on sales of investment securities and loans. Other factors contributing to our results of operations include our provisions for credit losses, provision for income taxes, and non-interest expenses, such as salaries and employee benefits, occupancy and equipment expenses, and other miscellaneous operating costs.

Current wording

Our results of operations depend substantially on net interest income, which is the difference between interest income on interest-earning assets, consisting primarily of interest income on loans and lease receivables, including accretion income on loans, investment securities and other short-term investments, and interest expense on interest-bearing liabilities, consisting primarily of deposits and borrowings. Our results of operations are also dependent upon our generation of non-interest income, consisting primarily of income from fees and service charges on deposits, loan servicing revenue, wealth management and trust income, ATM and interchange fees, and net gains on sales of investment securities and loans. Other factors contributing to our results of operations include our provision for credit losses, provision for income taxes, and non-interest expenses, such as salaries and employee benefits, occupancy and equipment expenses, and other miscellaneous operating costs.

Previous wording

(1) Represents a non-GAAP financial measure. See “Reconciliations of non-GAAP Financial Measures” for a reconciliation to the most directly comparable GAAP financial measure.

Current wording

(1) Represents a non-GAAP financial measure. See "Reconciliations of non-GAAP Financial Measures" for a reconciliation of our non-GAAP measures to the most directly comparable GAAP financial measure.

Previous wording

(3) Calculation excludes impairment charges on assets held for sale and ROU assets, and merger-related expenses.

Current wording

(3) Calculation excludes impairment charges on ROU assets and merger-related expenses.

Previous wording

We reported consolidated net income of $30.3 million for the three months ended September 30, 2024 compared to net income of $28.2 million for the three months ended September 30, 2023, an increase of $2.1 million. The increase in net income was attributable to a $3.6 million decrease in non-interest expense, and a $2.0 million increase in non-interest income, offset by a $5.0 million decrease in net interest income. Net income was $0.70 per basic and $0.69 per diluted common share, for the three months ended September 30, 2024 compared to $0.66 per basic and $0.65 per diluted common share, for the three months ended September 30, 2023.

Current wording

We reported consolidated net income of $28.2 million for the three months ended March 31, 2025 compared to net income of $30.4 million for the three months ended March 31, 2024, a decrease of $2.2 million. The decrease in net income was primarily attributable to an increase in non-interest expense of $2.6 million and an increase in the provision for credit losses of $2.5 million, partially offset by a $2.7 million increase in net interest income. Net income available to common stockholders was $0.65 per basic and $0.64 per diluted common share, for the three months ended March 31, 2025 compared to $0.70 per basic and per diluted common share, for the three months ended March 31, 2024.

Previous wording

Our annualized return on average assets was 1.29% for the three months ended September 30, 2024 compared to 1.30% for the three months ended September 30, 2023. Our annualized return on average stockholders’ equity was 11.39% for the three months ended September 30, 2024 compared to 12.11% for the three months ended September 30, 2023. Our efficiency ratio was 52.02% for the three months ended September 30, 2024 compared to 53.75% for the three months ended September 30, 2023.

Current wording

Our annualized return on average assets was 1.25% for the three months ended March 31, 2025 compared to 1.36% for the three months ended March 31, 2024. Our annualized return on average stockholders’ equity was 10.32% for the three months ended March 31, 2025 compared to 12.26% for the three months ended March 31, 2024. Our efficiency ratio was 53.66% for the three months ended March 31, 2025 compared to 51.94% for the three months ended March 31, 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 September 30, 2024, purchased credit deteriorated loans accounted for under ASC Topic 326 represented 2.1% of our total loan and lease portfolio compared to 3.4% at December 31, 2023.

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 and is impacted by changes in expected cash flows on 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 March 31, 2025, purchased credit deteriorated loans accounted for under ASC Topic 326 represented 1.7% of our total loan and lease portfolio compared to 1.8% at December 31, 2024.

Previous wording

Net loan accretion income was $3.0 million for the three months ended September 30, 2024 compared to $10.3 million for the three months ended September 30, 2023, a decrease of $7.3 million mainly due to lower accretion on loans acquired in the Inland acquisition. Total net loan accretion on acquired loans contributed 13 basis points to the net interest margin for the three months ended September 30, 2024 compared to 50 basis points for the three months ended September 30, 2023.

Current wording

Net loan accretion income was $2.6 million for the three months ended March 31, 2025 compared to $4.3 million for the three months ended March 31, 2024, a decrease of $1.7 million due to lower accretion on acquired loans. Total net loan accretion on acquired loans contributed 12 basis points to the net interest margin for the three months ended March 31, 2025 compared to 20 basis points for the three months ended March 31, 2024. Projected accretion income as of March 31, 2025 is summarized as follows:

Previous wording

The provision for credit losses was $7.5 million for the three months ended September 30, 2024, compared to $8.8 million for the three months ended September 30, 2023, a decrease of $1.3 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 $7.6 million for the three months ended September 30, 2024, and $7.9 million for the three months ended September 30, 2023, a decrease of $268,000. On July 1, 2023, a $2.7 million provision for credit losses was recorded on acquired non-credit-deteriorated loans related to the Inland transaction. The provision for credit losses - unfunded commitments was a recapture of $122,000 and a provision of $937,000 for the three months ended September 30, 2024 and 2023, respectively.

Current wording

The provision for credit losses was $9.2 million for the three months ended March 31, 2025, compared to $6.6 million for the three months ended March 31, 2024, an increase of $2.5 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 $9.1 million for the three months ended March 31, 2025, compared to $6.9 million for the three months ended March 31, 2024, an increase of $2.2 million. The increase in provision for credit losses - loans and leases was driven by growth in the loan and lease portfolio and a larger allocation for collectively assessed government guaranteed loans based on changes in loss rates. The provision for credit losses - unfunded commitments was $103,000 for the three months ended March 31, 2025 and a recapture of $248,000 for the three months ended March 31, 2024.

Previous wording

The following table presents the major components of non-interest income for the three and nine months ended September 30, 2024 and 2023, respectively (dollars in thousands):

Current wording

The following table presents the major components of non-interest income for the periods presented (dollars in thousands):

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 $2.4 million for the three months ended September 30, 2024 and 2023, respectively. Fees and service charges on deposits were $7.6 million and $6.7 million for the nine months ended September 30, 2024 and 2023, 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 $2.4 million for the three months ended March 31, 2025 and 2024, respectively. The increase is primarily due to growth in deposits and increased fees.

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 $3.2 million and $3.4 million in loan servicing revenue on the sold portion of the U.S. government guaranteed loans for the three months ended September 30, 2024 and 2023, respectively. We generated $9.8 million and $10.1 million in loan servicing revenue on the sold portion of the U.S. government guaranteed loans for the nine months ended September 30, 2024 and 2023, respectively. At September 30, 2024 and 2023, 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 $3.0 million and $3.4 million in loan servicing revenue on the sold portion of the U.S. government guaranteed loans for the three months ended March 31, 2025 and 2024, respectively, a decrease of $321,0000 or 9.5%. The decrease in loan servicing revenue was primarily driven by a decrease in loans serviced compared to March 31, 2024 and one less day during the quarter. At March 31, 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 $2.2 million and $3.6 million for the three months ended September 30, 2024 and 2023, respectively, a change of $1.5 million. Change in the quarterly revaluation was mainly due to a decline in the discount rate. Loan servicing asset revaluation had a downward adjustment of $5.4 million and $3.9 million for the nine months ended September 30, 2024 and 2023, respectively, a change of $1.5 million. Change in the year-to-date revaluation was mainly due to a decline in overall loans serviced balances and higher prepayment speeds.

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 $1.1 million and $703,000 for the three months ended March 31, 2025 and 2024, respectively, a change of $348,000. Changes in the revaluation were mainly due to higher prepayments.

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 September 30, 2024 compared to $939,000 for the three months ended September 30, 2023, an increase of $162,000 or 17.2%. Wealth management and trust income was $3.2 million for the nine months ended September 30, 2024 compared to $2.9 million for the nine months ended September 30, 2023, an increase of $298,000 or 10.3%. Assets under administration were $747.7 million and $742.6 million as of September 30, 2024 and 2023, respectively. The increases were primarily driven by higher fees on managed assets and new products and services.

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 $1.1 million for the three months ended March 31, 2025 compared to $1.2 million for the three months ended March 31, 2024, a decrease of $75,000 or 6.4%. Assets under administration were $741.8 million and $654.1 million as of March 31, 2025 and 2024, respectively.

Previous wording

The following table presents the major components of non-interest expense for the three and nine months ended September 30, 2024 and 2023, respectively (dollars in thousands):

Current wording

The following table presents the major components of non-interest expense for the periods presented (dollars in thousands):

Previous wording

Salaries and employee benefits, the single largest component of our non-interest expense, totaled $35.0 million for each of the three months ended September 30, 2024 and 2023, respectively. Salaries and employee benefits, totaled $102.8 million for the nine months ended September 30, 2024 compared to $95.0 million for the nine months ended September 30, 2023, an increase of $7.8 million, or 8.2%. The increase was primarily a result of 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 $36.3 million for the three months ended March 31, 2025 compared to $34.0 million for the three months ended March 31, 2024, an increase of $2.3 million, or 6.8%. The increases were primarily a result of merit increases, decreased deferred costs, increased incentives and higher health insurance costs. Our staffing decreased from 1,064 full-time equivalent employees as of March 31, 2024 to 1,032 as of March 31, 2025.

Previous wording

Legal, audit, and other professional fees were $3.6 million for the three months ended September 30, 2024 compared to $3.8 million for the three months ended September 30, 2023, a decrease of $162,000, or 4.3%. Legal, audit, and other professional fees were $10.1 million for the nine months ended September 30, 2024 compared to $10.6 million for the nine months ended September 30, 2023, a decrease of $524,000 or 5.0%. The decreases were principally driven by merger-related expenses incurred during 2023.

Current wording

Legal, audit, and other professional fees were $3.3 million for the three months ended March 31, 2025 compared to $2.7 million for the three months ended March 31, 2024, an increase of $532,000 , or 19.6%. The increase was principally driven by merger-related legal expenses incurred in the first quarter of 2025 and increased audit and other professional fees.

Previous wording

Our efficiency ratio was 52.02% for the three months ended September 30, 2024 compared to 53.75% for the three months ended September 30, 2023. The change in our efficiency ratio for the three months ended September 30, 2024 was driven by non-interest income growth and decrease in non-interest expense. Our adjusted efficiency ratio was 51.62% for the three months ended September 30, 2024 compared to 47.35% for the three months ended September 30, 2023. Our efficiency ratio was 52.05% for the nine months ended September 30, 2024, compared to 52.96% for the nine months ended September 30, 2023. The change in our efficiency ratio was due to higher net interest income. Our adjusted efficiency ratio was 51.92% for the nine months ended September 30, 2024, compared to 49.96% for the nine months ended September 30, 2023.

Current wording

Our efficiency ratio was 53.66% for the three months ended March 31, 2025 compared to 51.94% for the three months ended March 31, 2024. The change in our efficiency ratio for the three months ended March 31, 2025 was driven by increased non-interest expense. Our adjusted efficiency ratio was 53.04% for the three months ended March 31, 2025 compared to 51.75% for the three months ended March 31, 2024.

Previous wording

Our provision for income taxes for the nine months ended September 30, 2024 totaled $30.3 million compared to $27.4 million for the nine months ended September 30, 2023, an increase of $2.8 million or 10.3%. 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 25.1% for the nine months ended September 30, 2024 and 26.0% for the nine months ended September 30, 2023.

Current wording

Our provision for income taxes for the three months ended March 31, 2025 totaled $9.2 million compared to $10.1 million for the three months ended March 31, 2024, a decrease of $898,000, or 8.9%. 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 24.6% for the three months ended March 31, 2025 and 25.0% for the three months ended March 31, 2024.

Previous wording

Our total assets increased by $542.3 million, or 6.1%, to $9.4 billion at September 30, 2024 compared to $8.9 billion at December 31, 2023. The increase in total assets was primarily due to an increase in cash and cash equivalents of $226.5 million, or 100.1%, an increase in securities available for sale of $159.6 million, or 11.9%, and an increase of $195.1 million in loans and leases, or 2.9%, from $6.7 billion at December 31, 2023 to $6.9 billion at September 30, 2024. Our originated loan and lease portfolio increased by $377.0 million and our purchased credit deteriorated loans and acquired non-credit-deteriorated loans and leases portfolio decreased by $181.8 million. The increase in our originated portfolio was primarily attributed to growth in the commercial and industrial and commercial real estate portfolios. The decrease in our purchased credit deteriorated loans and acquired non-credit-deteriorated loans and leases portfolio was attributed to decreases in commercial and residential real estate resulting from resolutions and charge-offs.

Current wording

Our total assets increased by $88.2 million, or 0.9%, to $9.6 billion at March 31, 2025 compared to $9.5 billion at December 31, 2024. The increase in total assets was primarily due to an increase of $137.1 million in total loans and leases and loans held for sale, or 2.0%, from $6.9 billion at December 31, 2024 to $7.0 billion at March 31, 2025, and an increase in securities available-for-sale of $122.4 million, or 8.6% from $1.4 billion at December 31, 2024 to $1.5 billion as March 31, 2025. Our originated loan and lease portfolio increased by $161.4 million and our purchased credit deteriorated loans and acquired non-credit-deteriorated loans and leases portfolio decreased by $42.4 million. The increase in our originated portfolio was primarily attributed to growth in the commercial and industrial portfolio. The decrease in our purchased credit deteriorated loans and acquired non-credit-deteriorated loans and leases portfolio was attributed to decreases in commercial and residential real estate resulting mainly from renewals and resolutions.

Previous wording

Total liabilities increased by $436.2 million, or 5.5%, to $8.3 billion at September 30, 2024 compared to $7.9 billion at December 31, 2023. Total deposits increased by $320.9 million, or 4.5%, driven by growth in time deposits, interest bearing checking accounts, and money market accounts, offset by decreases to non-interest bearing deposits. Other borrowings increased by $123.6 million, or 31.3%, mainly due to increased FHLB advances.

Current wording

Total liabilities increased by $48.6 million, or 0.6%, to $8.5 billion at March 31, 2025 compared to $8.4 billion at December 31, 2024. Total deposits increased by $94.7 million, or 1.3%, driven by growth in money market accounts, offset by a decrease in time deposits. Other borrowings decreased by $40.5 million, or 6.5%, mainly due to lower FHLB advances and repayment of the term loan.

Previous wording

Securities available-for-sale increased by $159.6 million, or 11.9%, from $1.3 billion at December 31, 2023 to $1.5 billion at September 30, 2024. The increase was primarily attributed to purchases of securities, net of maturities, calls, and repayments coupled with a decrease in unrealized losses as a result of the current interest rate environment.

Current wording

Securities available-for-sale increased by $122.4 million, or 8.6%, from $1.4 billion at December 31, 2024 to $1.5 billion at March 31, 2025. The increase was mainly attributed to purchases of securities, net of maturities, calls, and repayments.

Previous wording

Certain securities have fair values less than amortized cost and, therefore, contain unrealized losses. At September 30, 2024, we evaluated the securities that had an unrealized loss for credit losses and determined there were none. There were 268 investment securities with unrealized losses at September 30, 2024. 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 have fair values less than amortized cost and, therefore, contain unrealized losses. At March 31, 2025, we evaluated the securities that had an unrealized loss for credit losses and determined there were none. There were 305 investment securities with unrealized losses at March 31, 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 $53.4 million at September 30, 2024, a decrease of $2.3 million from December 31, 2023.

Current wording

Total non-taxable securities classified as obligations of states, municipalities and political subdivisions were $53.4 million at March 31, 2025, a decrease of $105,000 from December 31, 2024.

Previous wording

As a member of the Federal Home Loan Bank 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, 2024 and December 31, 2023, we held $22.7 million and $16.3 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, 2024 and December 31, 2023.

Current wording

As a member of the Federal Home Loan Bank 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 March 31, 2025 and December 31, 2024, we held $26.3 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 March 31, 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 September 30, 2024 and December 31, 2023 were $6.9 billion and $6.7 billion, respectively, an increase of $195.1 million, or 2.9%. Originated loans and leases were $6.1 billion at September 30, 2024, an increase of $376.9 million, or 6.5%, compared to $5.8 billion at December 31, 2023. Purchased credit deteriorated loans and acquired non-credit-deteriorated loans and leases were $735.5 million at September 30, 2024, a decrease of $181.8 million, or 19.8%, compared to $917.3 million at December 31, 2023. 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 decrease in the purchased credit deteriorated and acquired non-credit-deteriorated loan and lease portfolio was driven by renewals of acquired loans and leases as well as resolutions and charge-offs.

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 March 31, 2025 and December 31, 2024 were $7.0 billion and $6.9 billion, respectively, an increase of $119.0 million, or 1.7%. Originated loans and leases were $6.4 billion at March 31, 2025, an increase of $161.4 million, or 2.6%, compared to $6.2 billion at December 31, 2024. Purchased credit deteriorated loans and acquired non-credit-deteriorated loans and leases were $620.7 million at March 31, 2025, a decrease of $42.4 million, or 6.4%, 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 in originated loans. The decrease in the purchased credit deteriorated and acquired non-credit-deteriorated loan and lease portfolio was driven mainly by renewals of acquired loans and leases as well as resolutions.

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 September 30, 2024, the loan portfolio included $419.5 million of unguaranteed 7(a) SBA and USDA loans with exposure to the following top three industries: 18.6% retail trade, 13.1% accommodation and food services, and 10.8% 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 March 31, 2025, the loan portfolio included $431.7 million of unguaranteed 7(a) SBA and USDA loans with exposure to the following top three industries: 19.9% retail trade, 13.6% accommodation and food services, and 9.3% 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):

Previous wording

Loans collateralized by real estate comprised 51.9% and 53.4% of the loan and lease portfolio at September 30, 2024 and December 31, 2023, respectively. Commercial real estate loans comprised the largest portion of the real estate loan portfolio as of September 30, 2024 and December 31, 2023 and totaled $2.4 billion, or 66.1% of real estate loans and 34.4% of the total loan and lease portfolio at September 30, 2024. At December 31, 2023, commercial real estate loans totaled $2.3 billion and comprised 65.1% of real estate loans and 34.7% of the total loan and lease portfolio. Purchased credit deteriorated commercial real estate loans decreased from $137.8 million as of December 31, 2023 to $95.2 million as of September 30, 2024, a decrease of $42.6 million, or 30.9%. At September 30, 2024 and December 31, 2023, commercial real estate loans, including both owner-occupied and non-owner occupied, as a percentage of total capital were 283.2% and 299.6%, respectively. Non-owner occupied commercial real estate loans were $1.0 billion, or 87.4% and 95.9% of total capital, at each of September 30, 2024 and December 31, 2023, respectively.

Current wording

Commercial Real Estate Loans. Commercial real estate loans, including owner occupied and non-owner occupied, comprised the largest portion of the real estate loan portfolio as of March 31, 2025 and totaled $2.4 billion, or 66.2% of real estate loans and 33.8% of the total loan and lease portfolio. At December 31, 2024, commercial real estate loans totaled $2.4 billion, or 66.0% of real estate loans and 34.1% of the total loan and lease portfolio. Purchased credit deteriorated commercial real estate loans decreased from $82.9 million as of December 31, 2024 to $78.4 million as of March 31, 2025, as a result of the migration of renewed loans to originated, paydowns, and resolutions.

Previous wording

Residential real estate loans totaled $710.4 million at September 30, 2024 compared to $719.5 million at December 31, 2023, a decrease of $9.2 million, or 1.3%. The residential real estate loan portfolio comprised 19.9% and 20.2% of real estate loans as of September 30, 2024 and December 31, 2023, respectively, and 10.3% and 10.8% of total loans and leases at September 30, 2024 and December 31, 2023, respectively. Purchased credit deteriorated and acquired non-credit-deteriorated residential real estate loans decreased from $254.4 million at December 31, 2023 to $213.3 million at September 30, 2024, a decrease of $41.1 million, or 16.1%. Multifamily real estate loans were $405.3 million and $399.3 million, or 35.0% and 36.8% of total capital, at September 30, 2024 and December 31, 2023, respectively.

Current wording

Residential real estate loans. Residential real estate loans totaled $727.4 million at March 31, 2025 compared to $726.1 million at December 31, 2024, an increase of $1.3 million, or 0.2%. The residential real estate loan portfolio comprised 20.3% of real estate loans as of March 31, 2025 and December 31, 2024, and 10.4% of total loans and leases at March 31, 2025 and December 31, 2024. Purchased credit deteriorated and acquired non-credit-deteriorated residential real estate loans decreased from $212.7 million at December 31, 2024 to $199.0 million at March 31, 2025, a decrease of $13.7 million, or 6.4%. Multifamily real estate loans were $435.3 million and $429.9 million, or 36.1% and 36.4% of Byline Bank total capital at March 31, 2025 and December 31, 2024, respectively.

Previous wording

Construction, land development, and other land loans totaled $499.8 million at September 30, 2024 compared to $526.8 million at December 31, 2023, a decrease of $27.0 million, or 5.1%. The construction, land development and other land loan portfolio comprised 14.0% and 14.8% of real estate loans at September 30, 2024 and December 31, 2023, respectively, and 7.3% and 7.9% of the total loan and lease portfolio at September 30, 2024 and December 31, 2023, respectively. The construction, land development and other land loan portfolio was 43.1% and 48.3% of total capital, at September 30, 2024 and December 31, 2023, respectively.

Current wording

Construction, land development, and other land loans. Construction, land development, and other land loans totaled $481.1 million at March 31, 2025 compared to $489.3 million at December 31, 2024, a decrease of $8.2 million, or 1.7%. The construction, land development and other land loan portfolio comprised 13.5% and 13.7% of real estate loans at March 31, 2025 and December 31, 2024, respectively, and 6.9% and 7.1% of the total loan and lease portfolio at March 31, 2025 and December 31, 2024, respectively. The construction, land development and other land loan portfolio was 39.9% and 41.3% of Byline Bank total capital, at March 31, 2025 and December 31, 2024, respectively.