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, 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.

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," "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

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.

Current wording

We reported consolidated net income of $40.2 million, or $0.90 per basic and $0.90 per diluted common share, for the three months ended June 30, 2026, compared to net income of $30.1 million, or $0.66 per basic and per diluted common share, for the three months ended June 30, 2025, an increase of $10.1 million. The increase in net income was principally attributable to a $4.9 million increase in net interest income and $4.8 million decrease in the provision for credit losses, partially offset by a $5.0 million increase to provision for income taxes.

Previous wording

Dividends declared and paid on common shares were $5.4 million and $4.4 million for the three months ended March 31, 2026 and 2025, respectively.

Current wording

Dividends declared on common shares were $5.4 million and $4.6 million for the three months ended June 30, 2026 and 2025, respectively. Dividends paid on common shares were $5.7 million and $4.8 million for the three months ended June 30, 2026 and 2025, respectively.

Previous wording

Our results of operations for the three months ended March 31, 2026 and 2025 yielded an annualized return on average assets of 1.56% and 1.25%, and an annualized return on average stockholders’ equity of 11.43% and 10.32%, respectively.

Current wording

Our results of operations for the three months ended June 30, 2026 and 2025 yielded an annualized return on average assets of 1.63% and 1.25%, and an annualized return on average stockholders’ equity of 12.05% and 10.24%, respectively. Our results of operations for the six months ended June 30, 2026 and 2025 yielded an annualized return on average assets of 1.59% and 1.25%, and an annualized return on average stockholders’ equity of 11.74% and 10.28%, respectively.

Previous wording

As of March 31, 2026, we had consolidated total assets of $9.9 billion, total gross loans and leases outstanding of $7.5 billion, total deposits of $7.8 billion, and total stockholders’ equity of $1.3 billion.

Current wording

As of June 30, 2026, we had consolidated total assets of $9.9 billion, total gross loans and leases outstanding of $7.6 billion, total deposits of $7.9 billion, and total stockholders’ equity of $1.3 billion.

Previous 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.

Current 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.

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 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.

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 ("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 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 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.

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 June 30, 2026, purchased credit deteriorated loans accounted for under ASC Topic 326 represented 1.1% of our 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. 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. Fees included in loan and lease interest income were $5.0 million and $4.6 million for the six months ended June 30, 2026 and 2025, respectively. Non-accrual loans and leases are included in total loan and lease balances.

Previous 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.

Current wording

Net interest income for the three months ended June 30, 2026 was $100.8 million compared to $96.0 million during the same period in 2025, an increase of $4.9 million, or 5.1%. Interest income decreased $233,000 for the three months ended June 30, 2026 compared to the same period in 2025 primarily a result of lower yields on the loan and lease portfolio, partially offset by growth in the loan and lease portfolio. Interest expense decreased by $5.1 million for the three months ended June 30, 2026 compared to the same period in 2025 mostly due to lower rates paid on interest-bearing deposits, primarily money market accounts and time deposits.

Previous 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.

Current wording

The net interest margin for the three months ended June 30, 2026 was 4.28%, an increase of ten basis points compared to 4.18% for the three months ended June 30, 2025. The increase was primarily attributable to lower rates paid on money market accounts and time deposits, offset by lower yields on loans and leases. The net interest margin for the six months ended June 30, 2026 was 4.30%, an increase of 17 basis points compared to 4.13% for the six months ended June 30, 2025. The increase was primarily attributable to lower rates paid on money market accounts and time deposits, offset by lower yields on loans and leases.

Previous 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):

Current wording

Net loan accretion income was $2.5 million for the three months ended June 30, 2026 compared to $3.0 million for the three months ended June 30, 2025, a decrease of $502,000 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 June 30, 2026 compared to 13 basis points for the three months ended June 30, 2025. Net loan accretion income was $4.4 million for the six months ended June 30, 2026 compared to $5.6 million for the six months ended June 30, 2025, a decrease of $1.1 million due to acquired loans converting to originated and charge-offs of PCD loans. Total net loan accretion on acquired loans contributed ten basis points to the net interest margin for the six months ended June 30, 2026 compared to 12 basis points for the six months ended June 30, 2025. Estimated projected accretion income for the remaining periods as of June 30, 2026 is summarized as follows (dollars in thousands):

Previous wording

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

Current wording

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

Previous 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.

Current 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.

Previous 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.

Current wording

The provision for credit losses was $7.2 million for the three months ended June 30, 2026, compared to $11.9 million for the three months ended June 30, 2025, a decrease of $4.8 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 $7.4 million for the three months ended June 30, 2026, and $11.8 million for the three months ended June 30, 2025, a decrease of $4.3 million. The provision for credit losses - unfunded commitments was a recapture of $266,000 and a provision of $166,000 for the three months ended June 30, 2026 and 2025, respectively.

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, 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.

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 $2.6 million for the three months ended June 30, 2026 and 2025, respectively. Fees and service charges on deposits were $5.8 million and $5.3 million for the six months ended June 30, 2026 and 2025, respectively. The increases were 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 $3.0 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.

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 $3.1 million in loan servicing revenue on the sold portion of the U.S. government guaranteed loans for the three months ended June 30, 2026 and 2025, respectively. We generated $6.1 million in loan servicing revenue on the sold portion of the U.S. government guaranteed loans for each of the six months ended June 30, 2026 and 2025. The decrease in revenue in each period is due to lower volume of loans serviced. At June 30, 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 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.

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 $2.1 million for the three months ended June 30, 2026 and 2025, respectively, a change of $1.0 million. Loan servicing asset revaluation had a downward adjustment of $3.0 million and $3.2 million for the six months ended June 30, 2026 and 2025, respectively, a change of $213,000. Change in the revaluations were mainly due to changes in the size of the serviced loan portfolio, offset by decreases to the discount rate and longer weighted-average life of the loans.

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 $1.3 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.

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 June 30, 2026 compared to $1.1 million for the three months ended June 30, 2025, an increase of $196,000 or 18.3%. Wealth management and trust income was $2.5 million for the six months ended June 30, 2026 compared to $2.2 million for the six months ended June 30, 2025, an increase of $376,000 or 17.5%. The increases were primarily driven by increases to assets under management. Assets under management were $1.0 billion and $869.1 million as of June 30, 2026 and 2025, respectively, an increase of $138.6 million or 16.0%.

Previous wording

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

Current wording

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

Previous 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.

Current wording

Salaries and employee benefits, the single largest component of our non-interest expense, totaled $35.7 million and $37.8 million for the three months ended June 30, 2026 and 2025, respectively, a decrease of $2.2 million, or 5.7%. Salaries and employee benefits, totaled $71.9 million for the six months ended June 30, 2026 compared to $74.1 million for the six months ended June 30, 2025, a decrease of $2.2 million, or 2.9%. These decreases were primarily a result of merger-related expenses incurred during the three and six months ended June 30, 2025.

Previous 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.

Current wording

Legal, audit, and other professional fees were $3.2 million for the three months ended June 30, 2026 compared to $4.8 million for the three months ended June 30, 2025, a decrease of $1.6 million or 33.3%. Legal, audit, and other professional fees were $6.5 million for the six months ended June 30, 2026 compared to $8.1 million for the six months ended June 30, 2025, a decrease of $1.6 million or 20.0%. The decrease for both periods were principally driven by merger-related expenses and fees and expenses related to the secondary offering of common stock that were incurred during the three and six months ended June 30, 2025.

Previous 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.

Current wording

Our efficiency ratio was 46.93% for the three months ended June 30, 2026 compared to 52.61% for the three months ended June 30, 2025. Our adjusted efficiency ratio was 46.51% for the three months ended June 30, 2026 compared to 48.20% for the three months ended June 30, 2025. The change in our efficiency ratio was mainly driven by higher net interest income and lower non-interest expense. Our efficiency ratio was 48.32% for the six months ended June 30, 2026, compared to 53.11% for the six months ended June 30, 2025. Our adjusted efficiency ratio was 48.11% for the six months ended June 30, 2026, compared to 50.54% for the six months ended June 30, 2025. The change in our efficiency ratio was principally driven by higher net interest income.

Previous 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.

Current wording

Our provision for income taxes for the three months ended June 30, 2026 totaled $13.9 million compared to $8.8 million for the three months ended June 30, 2025, an increase of $5.0 million, or 57.0%. The increase in income tax expense was principally due to higher net income before provision for income taxes, and lower discrete tax benefit due to the exercise of stock options and vesting of restricted shares. Our effective tax rate was 25.7% for the three months ended June 30, 2026 and 22.7% for the three months ended June 30, 2025.

Previous wording

Our total assets increased by $257.0 million, or 2.7%, to $9.9 billion at March 31, 2026 compared to $9.7 billion at December 31, 2025. The increase in total assets was primarily due to an increase in securities available-for-sale of $251.1 million, or 17.9%, and an increase in cash and cash equivalents of $49.3 million, or 33.0%. These were offset by decreases to total loans and leases of $34.1 million or 0.5%.

Current wording

Our total assets increased by $279.8 million, or 2.9%, to $9.9 billion at June 30, 2026 compared to $9.7 billion at December 31, 2025. The increase in total assets was primarily due to an increase in securities available-for-sale of $211.6 million, or 15.1%.

Previous 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.

Current wording

Total liabilities increased by $243.5 million, or 2.9%, to $8.6 billion at June 30, 2026 compared to $8.4 billion at December 31, 2025. Total deposits increased by $223.3 million, or 2.9%, driven by growth in interest-bearing checking accounts and time deposits. Other borrowings increased by $40.9 million, or 9.7%, due to increased FHLB advances.

Previous 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.

Current wording

Our investment securities portfolio consists of securities classified as available-for-sale. There were no securities classified held-to-maturity or as trading in our investment portfolio as of June 30, 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 $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.

Current wording

Securities available-for-sale increased by $211.6 million, or 15.1%, from $1.4 billion at December 31, 2025 to $1.6 billion at June 30, 2026. The increase was primarily attributed to purchases of securities, mainly mortgage-backed securities.

Previous 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.

Current wording

Certain securities have fair values less than amortized cost and, therefore, contain unrealized losses. At June 30, 2026, 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 June 30, 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 $38.6 million at March 31, 2026, a decrease of $380,000 from December 31, 2025.

Current wording

Total non-taxable securities classified as obligations of states, municipalities and political subdivisions were $23.4 million at June 30, 2026, a decrease of $15.5 million from December 31, 2025.

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 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.

Current 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 June 30, 2026 and December 31, 2025, we held $18.8 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 June 30, 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 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.

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 were $7.5 billion at June 30, 2026, an increase of an increase of $33.0 million, or 0.4% from December 31, 2025. Originated loans and leases were $7.1 billion at June 30, 2026, an increase of $192.3 million, or 2.8%, compared to $6.9 billion at December 31, 2025. Purchased credit deteriorated loans and acquired non-credit-deteriorated loans and leases were $472.9 million at June 30, 2026, a decrease of $159.2 million, or 25.2%, 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 with originated loans. The decrease in the purchased credit deteriorated and acquired non-credit-deteriorated loan and lease portfolio was driven by renewals reflected in originated loans 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 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):

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 June 30, 2026, the loan portfolio included $412.3 million of unguaranteed 7(a) SBA and USDA loans with exposure to the following top three industries: 18.5% retail trade, 16.7% accommodation and food services, and 7.7% 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 49.3% and 50.3% of the total loan and lease portfolio at March 31, 2026 and December 31, 2025, 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 47.8% and 50.3% of the total loan and lease portfolio at June 30, 2026 and December 31, 2025, respectively.

Previous 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.

Current wording

Commercial Real Estate Loans. Commercial real estate ("CRE") loans comprised the largest portion of the real estate loan portfolio as of June 30, 2026 and December 31, 2025 and totaled $2.5 billion, or 69.8% of real estate loans and 33.3% of the total loan and lease portfolio at June 30, 2026. At December 31, 2025, commercial real estate loans totaled $2.6 billion and comprised 69.1% of real estate loans and 34.7% of the total loan and lease portfolio. Acquired non-credit-deteriorated and purchased credit deteriorated CRE loans decreased from $269.1 million as of December 31, 2025 to $211.4 million as of June 30, 2026, a decrease of $57.7 million, or 21.4%.

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 ("CRE") portfolio by collateral type and state (location of the property), as of the date presented (dollars in thousands):

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 portfolio by collateral type and state (location of the property), as of the date presented:

Previous 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.

Current wording

The composition of the commercial real estate loan portfolio remained stable at June 30, 2026 compared to December 31, 2025. Industrial/warehouse, retail/restaurant, and office remain the top three collateral types in the CRE portfolio, and represented 26.0% of total loans and leases held for investment at June 30, 2026 compared to 27.0% at December 31, 2025. CRE office represents 8.7% of our total CRE portfolio as of June 30, 2026, compared to 9.2% as of December 31, 2025. Geographically, CRE loans in Illinois were 23.5% of total loans and leases held for investment and represented 70.4% of total CRE loans at June 30, 2026, compared to 23.5% of total loans and leases held for investment and 67.6% of total CRE loans at December 31, 2025. CRE loans outside of Illinois comprised 9.9% of total loans and leases held for investment as of June 30, 2026, compared to 11.2% as of December 31, 2025.

Previous wording

Owner occupied CRE loans were $1.5 billion, or 20.3% of our loan and lease portfolio at March 31, 2026, compared to $1.5 billion, or 20.2% of our loan and lease portfolio at December 31, 2025, a decrease of $5.3 million, or 0.3%. Non-owner occupied CRE loans were $1.0 billion, or 13.9% of our loan and lease portfolio at March 31, 2026, compared to $1.1 billion, or 14.5% of our loan and lease portfolio at December 31, 2025, a decrease of $50.0 million, or 4.6%. Non-owner occupied CRE loans were 77.4% and 82.9% of Byline Bank's total capital, at March 31, 2026 and December 31, 2025, respectively.

Current wording

Owner occupied CRE loans were $1.6 billion, or 20.6% of our loan and lease portfolio at June 30, 2026, compared to $1.5 billion, or 20.2% of our loan and lease portfolio at December 31, 2025, an increase of $33.1 million, or 2.2%. Non-owner occupied CRE loans were $960.4 million, or 12.7% of our loan and lease portfolio at June 30, 2026, compared to $1.1 billion, or 14.5% of our loan and lease portfolio at December 31, 2025, a decrease of $125.1 million, or 11.5%. Non-owner occupied CRE loans were 70.2% and 82.9% of Byline Bank's total capital, at June 30, 2026 and December 31, 2025, respectively.

Previous wording

At March 31, 2026 and December 31, 2025, CRE loan concentration, per the Federal Register includes owner-occupied and non-owner occupied CRE loans, construction land development and other land loans, multifamily property loans, and loans to finance CRE, construction and land development activities (that are not secured by real estate), and as a percentage of Byline Bank's total capital was 255.8% and 268.3%, respectively. We have not experienced concentration shift during the three months ended March 31, 2026, nor have we changed our CRE underwriting standards.

Current wording

At June 30, 2026 and December 31, 2025, CRE loan concentration, as defined in the Federal Register to include owner-occupied and non-owner occupied CRE loans, construction land development and other land loans, multifamily property loans, and loans to finance CRE, construction and land development activities (that are not secured by real estate), as a percentage of Byline Bank's total capital were 243.8% and 268.3%, respectively. We have not experienced a portfolio concentration shift during the six months ended June 30, 2026, nor have we changed our CRE underwriting standards.

Previous wording

Residential real estate loans. Residential real estate loans totaled $752.9 million at March 31, 2026 compared to $757.4 million at December 31, 2025, a decrease of $4.5 million, or 0.6%. The residential real estate loan portfolio comprised 20.5% of real estate loans as of March 31, 2026 and December 31, 2025, and 10.1% of total loans and leases at March 31, 2026 and December 31, 2025. Purchased credit deteriorated and acquired non-credit-deteriorated residential real estate loans decreased from $190.3 million at December 31, 2025 to $176.0 million at March 31, 2026, a decrease of $14.3 million, or 7.5%. Multifamily real estate loans were $476.9 million and $476.1 million, or 35.7% and 36.4% of Byline Bank's total capital at March 31, 2026 and December 31, 2025, respectively.

Current wording

Residential real estate loans. Residential real estate loans totaled $742.7 million at June 30, 2026 compared to $757.4 million at December 31, 2025, a decrease of $14.7 million, or 1.9%. The residential real estate loan portfolio comprised 20.6% and 20.1% of real estate loans as of June 30, 2026 and December 31, 2025, respectively, and 9.8% and 10.2% of total loans and leases at June 30, 2026 and December 31, 2025, respectively. Purchased credit deteriorated and acquired non-credit-deteriorated residential real estate loans decreased from $190.3 million at December 31, 2025 to $167.7 million at June 30, 2026, a decrease of $22.6 million, or 11.9%. Multifamily real estate loans were $456.4 million and $476.1 million, or 33.3% and 36.4% of Byline Bank's total capital, at June 30, 2026 and December 31, 2025, respectively.