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

uncertainty regarding domestic, foreign, and geopolitical developments and the United States, including the effects of a prolonged US government shutdown, and global economic outlook that may impact market conditions or affect demand for certain banking products and services, and the impact on our customers, which could impair the ability of our borrowers to repay outstanding loans and leases, impair collateral values and further increase our allowance for credit losses - loans and leases, as well as result in possible asset impairment charges;

Current wording

uncertainty regarding domestic, foreign, and geopolitical developments and the United States and global economic outlook that may impact market conditions or affect demand for certain banking products and services, and the impact on our customers, which could impair the ability of our borrowers to repay outstanding loans and leases, impair collateral values and further increase our allowance for credit losses - loans and leases, as well as result in possible asset impairment charges;

Previous wording

changes in Small Business Administration ("SBA") and U.S. Department of Agriculture ("USDA") U.S. government guaranteed lending rules, regulations, loan and lease products and funding limits, including specifically the SBA Section 7(a) program, as well as changes in SBA or USDA standard operating procedures or changes to the status of Byline Bank as an SBA Preferred Lender;

Current wording

changes in Small Business Administration ("SBA") and U.S. Department of Agriculture ("USDA") U.S. government guaranteed lending rules, regulations, loan products and funding limits, including specifically the SBA Section 7(a) program, as well as changes in SBA or USDA standard operating procedures or changes to the status of Byline Bank as an SBA Preferred Lender;

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 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) lender in Illinois for the fiscal year ended September 30, 2025.

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 and California. 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) lender in Illinois for the quarter ended March 31, 2026.

Previous wording

We reported consolidated net income of $95.5 million for the nine months ended September 30, 2025 compared to net income of $90.4 million for the nine months ended September 30, 2024, an increase of $5.1 million. The increase in net income was primarily attributable to a $24.5 million increase in net interest income, and a $2.5 million increase in non-interest income, offset by an increase of $15.2 million in non-interest expense, and an increase of $6.2 million in provision for credit losses. Net income was $2.14 per basic and $2.12 per diluted common share for the nine months ended September 30, 2025, compared to $2.08 per basic and $2.07 per diluted common share for the nine months ended September 30, 2024.

Current wording

We reported consolidated net income of $37.6 million, or $0.84 per basic and $0.83 per diluted common share, for the three months ended March 31, 2026, compared to net income of $28.2 million, or $0.65 per basic and $0.64 per diluted common share, for the three months ended March 31, 2025, an increase of $9.3 million. The increase in net income was attributable to a $11.6 million increase in net interest income and $3.6 million decrease in the provision for credit losses, partially offset by a $2.3 million decrease to non-interest income.

Previous wording

On April 1, 2025, we completed our acquisition (the "First Security 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. Refer to Note 3—Acquisition of a Business for additional discussion.

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. Refer to Note 3—Acquisition of a Business for additional information.

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, 2024, which we filed with the SEC on February 28, 2025.

Current wording

There have been no significant changes in our application of the critical accounting policies and significant estimates since December 31, 2025. 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, 2025, which we filed with the SEC on February 27, 2026.

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

Net interest income, representing interest income less interest expense, is a significant contributor to our revenues and earnings. We generate interest income from interest and dividends on interest-earning assets, which include loans, leases and investment securities we own. We incur interest expense from interest paid on interest-bearing liabilities, which include interest-bearing deposits, subordinated debt, Federal Home Loan Bank ("FHLB") advances, junior subordinated debentures and other borrowings. To evaluate net interest income, we measure and monitor (i) yields on our loans and other interest-earning assets, (ii) the costs of our deposits and other funding sources, (iii) our net interest spread, and (iv) our net interest margin. Net interest spread is the difference between rates earned on interest-earning assets and rates paid on interest-bearing liabilities. Net interest margin is calculated as the annualized net interest income divided by average interest-earning assets. Because non-interest-bearing sources of funds, such as non-interest-bearing deposits and stockholders’ equity, also fund interest-earning assets, net interest margin includes the benefit of these non-interest-bearing sources.

Current wording

Net interest income, representing interest income less interest expense, is a significant contributor to our revenues and earnings. We generate interest income from interest and dividends on interest-earning assets, which include loans, leases and investment securities we own. We incur interest expense from interest paid on interest-bearing liabilities, which include interest-bearing deposits, subordinated debt, Federal Home Loan Bank advances, junior subordinated debentures and other borrowings. To evaluate net interest income, we measure and monitor (i) yields on interest-earning assets, (ii) the costs of deposits and other funding sources, (iii) net interest spread, and (iv) net interest margin. Net interest spread is the difference between rates earned on interest-earning assets and rates paid on interest-bearing liabilities. Net interest margin is calculated as the annualized net interest income divided by average interest-earning assets. Because non-interest-bearing sources of funds, such as non-interest-bearing deposits and stockholders’ equity, also fund interest-earning assets, net interest margin includes the benefit of these non-interest-bearing sources.

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, 2025 and December 31, 2024, purchased credit deteriorated loans accounted for under ASC Topic 326 represented 1.6% and 1.8% of our total loan and lease portfolio, respectively.

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, 2026, purchased credit deteriorated loans accounted for under ASC Topic 326 represented 1.3% of our total loan and lease portfolio compared to 1.4% at December 31, 2025.

Previous wording

Loan and lease balances are net of deferred origination fees and costs and initial direct costs. Fees included in loan and lease interest income were $6.4 million and $6.2 million for the nine months ended September 2025 and 2024, respectively. Non-accrual loans and leases are included in total loan and lease balances.

Current wording

Loan and lease balances are net of deferred origination fees and costs and initial direct costs. Non-accrual loans and leases are included in total loan and lease balances.

Previous wording

Net interest income for the three months ended September 30, 2025 was $99.9 million compared to $87.5 million during the same period in 2024, an increase of $12.4 million, or 14.2%. Interest income increased $2.2 million for the three months ended September 30, 2025 compared to the same period in 2024 primarily a result of growth in the loan and lease portfolio. Interest expense decreased by $10.2 million for the three months ended September 30, 2025 compared to the same period in 2024 mostly due to lower rates paid on interest-bearing deposits, primarily time deposits.

Current wording

Net interest income for the three months ended March 31, 2026 was $99.9 million compared to $88.2 million during the same period in 2025, an increase of $11.6 million, or 13.2%. Interest income increased $6.8 million for the three months ended March 31, 2026 compared to the same period in 2025 primarily as a result of higher average balances on loans and leases. Interest expense decreased by $4.8 million, or 10.4% for the three months ended March 31, 2026 compared to the same period in 2025 mainly due to lower rates paid on interest-bearing deposits.

Previous wording

The net interest margin for the three months ended September 30, 2025 was 4.27%, an increase of 39 basis points compared to 3.88% for the three months ended September 30, 2024. The increase was primarily attributable to lower rates paid on time deposits, offset by lower yields on interest bearing cash. The net interest margin for the nine months ended September 30, 2025 was 4.18%, an increase of 23 basis points compared to 3.95% for the nine months ended September 30, 2024. The increase was primarily attributable to lower rates paid on time deposits, offset by lower yields on loans and interest bearing cash.

Current wording

The net interest margin for the three months ended March 31, 2026 was 4.33%, an increase of 26 basis points compared to 4.07% for the three months ended March 31, 2025. The increase was primarily attributable to lower rates paid on deposits, offset by lower yields on loans.

Previous wording

Net loan accretion income was $2.5 million for the three months ended September 30, 2025 compared to $3.0 million for the three months ended September 30, 2024, a decrease of $454,000 mainly due to acquired loans converting to originated. Total net loan accretion on acquired loans contributed 11 basis points to the net interest margin for the three months ended September 30, 2025 compared to 13 basis points for the three months ended September 30, 2024.

Current wording

Net loan accretion income was $2.0 million for the three months ended March 31, 2026 compared to $2.6 million for the three months ended March 31, 2025, a decrease of $624,000 due to lower accretion on acquired loans. Total net loan accretion on acquired loans contributed nine basis points to the net interest margin for the three months ended March 31, 2026 compared to 12 basis points for the three months ended March 31, 2025. Estimated projected accretion income as of March 31, 2026 is summarized as follows (dollars in thousands):

Previous wording

(2) Projections are undated quarterly, assume no prepayments, and are subject to change.

Current wording

(2) Projections are updated quarterly, assume no prepayments, and are subject to change.

Previous wording

The provision for credit losses reflects the amount required to maintain the ACL at an appropriate level based upon management’s evaluation of collectively and individually evaluated loss reserves. The provision for credit losses represents a charge to earnings necessary to establish an allowance for credit losses that, in management’s evaluation, is appropriate to provide coverage for current expected credit losses in the loan and lease portfolio. The ACL is increased by the provision for credit losses and is decreased by charge-offs, net of recoveries on prior charge-offs.

Current wording

The provision for credit losses is the amount required to maintain the ACL at an appropriate level based upon management’s evaluation of collectively and individually evaluated loss reserves. The provision for credit losses represents a charge to earnings necessary to establish an allowance for credit losses that, in management’s evaluation, is appropriate to provide coverage for current expected credit losses in the loan and lease portfolio. The ACL is increased by the provision for credit losses and is decreased by charge-offs, net of recoveries on prior charge-offs.

Previous wording

The provision for credit losses was $5.3 million for the three months ended September 30, 2025, compared to $7.5 million for the three months ended September 30, 2024, a decrease of $2.2 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 $5.1 million for the three months ended September 30, 2025, and $7.6 million for the three months ended September 30, 2024, a decrease of $2.5 million. The provision for credit losses - unfunded commitments was a provision of $201,000 and a recapture of $122,000 for the three months ended September 30, 2025 and 2024, respectively.

Current wording

The provision for credit losses was $5.5 million for the three months ended March 31, 2026, compared to $9.2 million for the three months ended March 31, 2025, a decrease of $3.6 million and is comprised of a provision for credit losses - loans and leases and a recapture of the provision for credit losses - unfunded commitments. Provision for credit losses - loans and leases was $6.0 million for the three months ended March 31, 2026, compared to $9.1 million for the three months ended March 31, 2025, a decrease of $3.1 million. The decrease in provision for credit losses - loans and leases was driven by a recapture of provision on commercial real estate loans and construction, land development, and other land loans. The provision for credit losses - unfunded commitments was a recapture of $458,000 for the three months ended March 31, 2026 and a provision of $103,000 for the three months ended March 31, 2025.

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 $2.7 million and $2.6 million for the three months ended September 30, 2025 and 2024, respectively. Fees and service charges on deposits were $8.1 million and $7.6 million for the nine months ended September 30, 2025 and 2024, 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, treasury management fees, and other charges. Fees and service charges on deposits were $2.9 million and $2.7 million for the three months ended March 31, 2026 and 2025, respectively, an increase of 8.0%. 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 $3.1 million and $3.2 million in loan servicing revenue on the sold portion of the U.S. government guaranteed loans for the three months ended September 30, 2025 and 2024, respectively. We generated $9.2 million and $9.8 million in loan servicing revenue on the sold portion of the U.S. government guaranteed loans for the nine months ended September 30, 2025 and 2024, respectively. The decrease in revenue in each period is due to higher prepayments. At September 30, 2025 and 2024, 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 in loan servicing revenue on the sold portion of the U.S. government guaranteed loans for the three months ended March 31, 2026 and 2025. At March 31, 2026 and 2025, the outstanding balance of guaranteed loans serviced was $1.6 billion and $1.7 billion, respectively.

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 $1.3 million and $2.2 million for the three months ended September 30, 2025 and 2024, respectively, a change of $889,000. Loan servicing asset revaluation had a downward adjustment of $4.5 million and $5.4 million for the nine months ended September 30, 2025 and 2024, respectively, a change of $859,000. Change in the revaluations was mainly due to a changes in prepayment speeds.

Current wording

Loan servicing asset revaluation represents net changes in the fair value of our servicing assets. Loan servicing asset revaluation had downward adjustments of $1.9 million and $1.1 million for the three months ended March 31, 2026 and 2025, respectively, a change of $811,000, or 77.1%. 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 $1.4 million for the three months ended September 30, 2025 compared to $1.1 million for the three months ended September 30, 2024, an increase of $265,000 or 24.1%. Wealth management and trust income was $3.5 million for the nine months ended September 30, 2025 compared to $3.2 million for the nine months ended September 30, 2024, an increase of $322,000 or 10.1%. The increases were primarily driven by higher fees. Assets under administration were $807.2 million and $747.7 million as of September 30, 2025 and 2024, respectively.

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 $1.3 million for the three months ended March 31, 2026 compared to $1.1 million for the three months ended March 31, 2025, an increase of $180,000 or 16.6%. Assets under administration were $803.9 million and $741.8 million as of March 31, 2026 and 2025, respectively.

Previous wording

The following table presents the major components of non-interest expense for periods presented (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 $37.5 million and $35.0 million for the three months ended September 30, 2025 and 2024, respectively, an increase of $2.5 million, or 7.2%. The increase was mainly due to higher incentive compensation and higher employee benefits. Salaries and employee benefits, totaled $111.6 million for the nine months ended September 30, 2025 compared to $102.8 million for the nine months ended September 30, 2024, an increase of $8.7 million, or 8.5%. The increase was primarily a result of merger-related expenses and higher incentive compensation.

Current wording

Salaries and employee benefits, the single largest component of our non-interest expense, totaled $36.2 million for the three months ended March 31, 2026 compared to $36.3 million for the three months ended March 31, 2025, a decrease of $7,000.

Previous wording

Legal, audit, and other professional fees were $3.9 million for the three months ended September 30, 2025 compared to $3.6 million for the three months ended September 30, 2024, an increase of $233,000 or 6.4%. The increase was primarily driven by increased outside service fees. Legal, audit, and other professional fees were $12.0 million for the nine months ended September 30, 2025 compared to $10.1 million for the nine months ended September 30, 2024, an increase of $1.9 million or 18.9%. The increase was principally driven by increased outside service fees, merger-related expenses, and fees and expenses related to the secondary public offering of our common stock.

Current wording

Legal, audit, and other professional fees were $3.2 million for the three months ended March 31, 2026 compared to $3.3 million for the three months ended March 31, 2025, a decrease of $7,000.

Previous wording

Our efficiency ratio was 51.00% for the three months ended September 30, 2025 compared to 52.02% for the three months ended September 30, 2024. Our adjusted efficiency ratio was 50.27% for the three months ended September 30, 2025 compared to 51.62% for the three months ended September 30, 2024. The change in our efficiency ratio was mainly driven by increases to net interest income. Our efficiency ratio was 52.37% for the nine months ended September 30, 2025, compared to 52.05% for the nine months ended September 30, 2024. The change in our efficiency ratio was driven by higher non-interest expense. Our adjusted efficiency ratio was 50.44% for the nine months ended September 30, 2025, compared to 51.85% for the nine months ended September 30, 2024.

Current wording

Our efficiency ratio was 49.78% for the three months ended March 31, 2026 compared to 53.66% for the three months ended March 31, 2025. The change in our efficiency ratio for the three months ended March 31, 2026 was driven by increased net interest income. Our adjusted efficiency ratio was 49.78% for the three months ended March 31, 2026 compared to 53.04% for the three months ended March 31, 2025.

Previous wording

Our provision for income taxes for the three months ended September 30, 2025 totaled $12.7 million compared to $9.7 million for the three months ended September 30, 2024, an increase of $3.0 million, or 31.0%. 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 25.5% for the three months ended September 30, 2025 and 24.3% for the three months ended September 30, 2024.

Current wording

Our provision for income taxes for the three months ended March 31, 2026 totaled $12.1 million compared to $9.2 million for the three months ended March 31, 2025, an increase of $2.9 million, or 31.1%. 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 24.4% for the three months ended March 31, 2026 and 24.6% for the three months ended March 31, 2025.

Previous wording

Total liabilities increased by $169.7 million, or 2.0%, to $8.6 billion at September 30, 2025 compared to $8.4 billion at December 31, 2024. Total deposits increased by $369.6 million, or 5.0%, driven by the First Security acquisition, and growth in money market accounts, offset by decreases to time deposits. Other borrowings decreased by $257.5 million, or 41.6%, mainly due to decreased FHLB advances.

Current wording

Total liabilities increased by $244.6 million, or 2.9%, to $8.6 billion at March 31, 2026 compared to $8.4 billion at December 31, 2025. Total deposits increased by $154.4 million, or 2.0%, driven by growth in time deposits and interest-bearing checking accountsadd. Other borrowings increased by $84.9 million, or 20.2%, mainly due to higher FHLB advances.

Previous wording

Our investment securities portfolio consists of securities classified as available-for-sale and held-to-maturity. There were no securities classified as trading in our investment portfolio as of September 30, 2025 or December 31, 2024. All available-for sale securities are carried at fair value and may be used for liquidity purposes should management consider it to be in our best interest. Securities available-for-sale consist primarily of residential mortgage-backed securities, commercial mortgage-backed securities and U.S. government agencies securities.

Current wording

Our investment securities portfolio consists of securities classified as available-for-sale. There were no securities classified as trading in our investment portfolio during the three months ended March 31, 2026 or the year ended December 31, 2025. There were no securities classified as held-to-maturity as of March 31, 2026 or December 31, 2025. All available-for sale securities are carried at fair value and may be used for liquidity purposes should management consider it to be in our best interest. Securities available-for-sale consist primarily of residential mortgage-backed securities, commercial mortgage-backed securities, and U.S. government agencies securities.

Previous wording

Securities available-for-sale increased by $96.5 million, or 6.8%, from $1.4 billion at December 31, 2024 to $1.5 billion at September 30, 2025. The increase was primarily attributed to purchases of securities, the First Security acquisition, and increases in fair value.

Current wording

Securities available-for-sale increased by $251.1 million, or 17.9%, from $1.4 billion at December 31, 2025 to $1.7 billion at March 31, 2026. The increase was mainly attributed to purchases of securities, net of maturities, calls, and repayments.

Previous wording

The following table summarizes the fair value of the available-for-sale and held-to-maturity securities portfolio as of the dates presented (dollars in thousands):

Current wording

The following table summarizes the fair value of the available-for-sale securities portfolio as of the dates presented (dollars in thousands):

Previous wording

Certain securities in unrealized loss positions have fair values less than amortized cost and, therefore, contain unrealized losses. At September 30, 2025, we evaluated the securities that had an unrealized loss for credit losses and determined there were none. There were 252 investment securities with unrealized losses at September 30, 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.

Current wording

Certain securities have fair values less than amortized cost and, therefore, contain unrealized losses. At March 31, 2026, we evaluated the securities that had an unrealized loss for credit losses and determined there were none. There were 244 investment securities with unrealized losses at March 31, 2026. 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 $53.5 million at September 30, 2025, a decrease of $1.0 million from December 31, 2024.

Current wording

Total non-taxable securities classified as obligations of states, municipalities and political subdivisions were $38.6 million at March 31, 2026, a decrease of $380,000 from December 31, 2025.

Previous wording

As a member of the FHLB 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, 2025 and December 31, 2024, we held $15.9 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 September 30, 2025 and December 31, 2024.

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, 2026 and December 31, 2025, we held $20.6 million and $21.3 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 March 31, 2026 and December 31, 2025.

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, 2025 and December 31, 2024 were $7.4 billion and $6.9 billion, respectively, an increase of $533.9 million, or 7.7%. Originated loans and leases were $6.8 billion at September 30, 2025, an increase of $513.6 million, or 8.2%, compared to $6.2 billion at December 31, 2024. Purchased credit deteriorated loans and acquired non-credit-deteriorated loans and leases were $683.4 million at September 30, 2025, an increase of $20.3 million, or 3.1%, 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 with originated loans. The increase in the purchased credit deteriorated and acquired non-credit-deteriorated loan and lease portfolio was driven by the First Security acquisition.

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, 2026 and December 31, 2025 were $7.5 billion, a decrease of $34.1 million, or 0.5%. Originated loans and leases were $6.9 billion at March 31, 2026, an increase of $35.4 million, or 0.5%, compared to December 31, 2025. Purchased credit deteriorated loans and acquired non-credit-deteriorated loans and leases were $562.6 million at March 31, 2026, a decrease of $69.5 million, or 11.0%, compared to $632.1 million at December 31, 2025. 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 PCD and acquired non-credit-deteriorated loan and lease portfolio was driven 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, 2025, the loan portfolio included $428.2 million of unguaranteed 7(a) SBA and USDA loans with exposure to the following top three industries: 20.6% retail trade, 13.4% accommodation and food services, and 8.3% health care and social assistance. 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, 2026, the loan portfolio included $407.0 million of unguaranteed 7(a) SBA and USDA loans with exposure to the following top three industries: 20.4% retail trade, 14.5% accommodation and food services, and 8.2% health care and social assistance. 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 include: commercial real estate, residential real estate, and construction, land development, and other land. In the aggregate, loans collateralized by real estate comprised 50.3% and 51.6% of the total loan and lease portfolio at September 30, 2025 and December 31, 2024, respectively.

Current wording

Loans collateralized by real estate include: commercial real estate, residential real estate, and construction, land development, and other land. In the aggregate, loans collateralized by real estate comprised 49.3% and 50.3% of the total loan and lease portfolio at March 31, 2026 and December 31, 2025, respectively.

Previous wording

Commercial Real Estate Loans. Commercial real estate ("CRE") loans comprised the largest portion of the real estate loan portfolio as of September 30, 2025 and December 31, 2024 and totaled $2.5 billion, or 67.4% of real estate loans and 33.9% of the total loan and lease portfolio at September 30, 2025. At December 31, 2024, commercial real estate loans totaled $2.4 billion and comprised 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 $71.4 million as of September 30, 2025, a decrease of $11.6 million, or 14.0%.

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, 2026 and totaled $2.6 billion, or 69.3% of real estate loans and 34.2% of the total loan and lease portfolio. At December 31, 2025, commercial real estate loans totaled $2.6 billion, or 69.1% of real estate loans and 34.7% of the total loan and lease portfolio.Acquired non-credit-deteriorated commercial real estate loans decreased from $200.1 million as of December 31, 2025 to $177.5 million as of March 31, 2026, as a result of the migration of renewed loans to originated, paydowns, and resolutions.

Previous wording

As part of our risk assessment strategy, we strive to maintain a diversified commercial real estate portfolio, which is reviewed periodically by primary collateral type and geographic location. The following tables present details of our commercial real estate portfolio by collateral type and state (location of the property), as of the date presented:

Current wording

As part of our risk assessment strategy, we strive to maintain a diversified commercial real estate portfolio, which is reviewed periodically by primary collateral type and geographic location. The following tables present details of our commercial real estate ("CRE") portfolio by collateral type and state (location of the property), as of the date presented (dollars in thousands):

Previous wording

The composition of the commercial real estate loan portfolio remained stable at September 30, 2025 compared to December 31, 2024. Industrial/warehouse, retail/restaurant, and office remain the top three collateral types in the CRE portfolio, and represented 25.5% of total loans and leases held for investment at September 30, 2025 compared to 26.8% at December 31, 2024. CRE office represents 9.7% of our total CRE portfolio as of September 30, 2025, compared to 10.5% as of December 31, 2024. Geographically, CRE loans in Illinois decreased to 22.9% of total loans and leases held for investment and represented 67.5% of total CRE loans at September 30, 2025, compared to 23.1% of total loans and leases held for investment and 67.8% of total CRE loans at December 31, 2024. CRE loans outside of Illinois comprised 11.0% of total loans and leases held for investment as of September 30, 2025, compared to 10.8% as of December 31, 2024.

Current wording

The composition of the CRE loan portfolio remained stable at March 31, 2026 compared to December 31, 2025. Industrial/warehouse, retail/restaurant, and office remain the top three collateral types in the CRE portfolio, and represented 26.7% of total loans and leases held for investment at March 31, 2026 compared to 26.9% at December 31, 2025. CRE office represents 9.1% of our total CRE portfolio as of March 31, 2026, compared to 9.2% as of December 31, 2025. Geographically, CRE loans in Illinois held steady at 23.5% of total loans and leases held for investment at both March 31, 2026 and December 31, 2025, and compared to 68.9% and 67.6% of total CRE loans at March 31, 2026 and December 31, 2025, respectively. CRE loans outside of Illinois comprised 10.7% of total loans and leases held for investment as of March 31, 2026, compared to 11.2% as of December 31, 2025.