Byline Bancorp's (NYSE:BY) Q2: Strong Sales

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3 days ago

Regional banking company Byline Bancorp (NYSE:BY) reported revenue ahead of Wall Street's expectations in Q2 CY2025, with sales up 11.2% year on year to $110.5 million. Its non-GAAP profit of $0.75 per share was 12.5% above analysts' consensus estimates.
Is now the time to buy Byline Bancorp? Find out in our full research report.
Byline Bancorp (BY) Q2 CY2025 Highlights:
Net Interest Income: $95.97 million vs analyst estimates of $91.83 million (10.9% year-on-year growth, 4.5% beat)
Net Interest Margin: 4.2% vs analyst estimates of 4% (19 basis point year-on-year increase, 14.3 bps beat)
Revenue: $110.5 million vs analyst estimates of $106.9 million (11.2% year-on-year growth, 3.3% beat)
Efficiency Ratio: 52.6% vs analyst estimates of 53.7% (1.1 percentage point beat)
Adjusted EPS: $0.75 vs analyst estimates of $0.67 (12.5% beat)
Market Capitalization: $1.22 billion
Roberto R. Herencia, Executive Chairman and CEO of Byline Bancorp, commented, "We are pleased with our overall strategic execution for the first half of the year as we successfully completed the acquisition of First Security Bancorp, which we believe has strengthened the return profile of Byline. We believe that our position in the market remains strong and continue to be driven by our objective of becoming the preeminent commercial bank in Chicago. "
Company Overview
Ranking as the fifth most active Small Business Administration lender in the country, Byline Bancorp (NYSE:BY) is a Chicago-based bank that provides banking services to small and medium-sized businesses, commercial real estate developers, and consumers.
Sales Growth
Net interest income and and fee-based revenue are the two pillars supporting bank earnings. The former captures profit from the gap between lending rates and deposit costs, while the latter encompasses charges for banking services, credit products, wealth management, and trading activities.
Luckily, Byline Bancorp's revenue grew at an impressive 9.3% compounded annual growth rate over the last five years. Its growth beat the average bank company and shows its offerings resonate with customers, a helpful starting point for our analysis.
We at StockStory place the most emphasis on long-term growth, but within financials, a half-decade historical view may miss recent interest rate changes, market returns, and industry trends. Byline Bancorp's annualized revenue growth of 9.5% over the last two years aligns with its five-year trend, suggesting its demand was predictably strong.
Note: Quarters not shown were determined to be outliers, impacted by outsized investment gains/losses that are not indicative of the recurring fundamentals of the business.
This quarter, Byline Bancorp reported year-on-year revenue growth of 11.2%, and its $110.5 million of revenue exceeded Wall Street's estimates by 3.3%.
Net interest income made up 81.8% of the company's total revenue during the last five years, meaning Byline Bancorp barely relies on non-interest income to drive its overall growth.
While banks generate revenue from multiple sources, investors view net interest income as the cornerstone - its predictable, recurring characteristics stand in sharp contrast to the volatility of non-interest income.
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Tangible Book Value Per Share (TBVPS)
Banks operate as balance sheet businesses, with profits generated through borrowing and lending activities. Valuations reflect this reality, emphasizing balance sheet strength and long-term book value compounding ability.
Because of this, tangible book value per share (TBVPS) emerges as the critical performance benchmark. By excluding intangible assets with uncertain liquidation values, this metric captures real, liquid net worth per share. Other (and more commonly known) per-share metrics like EPS can sometimes be murky due to M&A or accounting rules allowing for loan losses to be spread out.
Byline Bancorp's TBVPS grew at a solid 6.9% annual clip over the last five years. TBVPS growth has also accelerated recently, growing by 11.2% annually over the last two years from $17.43 to $21.56 per share.
Over the next 12 months, Consensus estimates call for Byline Bancorp's TBVPS to grow by 10.6% to $23.85, solid growth rate.
Key Takeaways from Byline Bancorp's Q2 Results
We enjoyed seeing Byline Bancorp beat analysts' net interest income expectations this quarter. We were also glad its revenue outperformed Wall Street's estimates. Zooming out, we think this was a good print with some key areas of upside. The stock remained flat at $27.10 immediately after reporting.
Is Byline Bancorp an attractive investment opportunity right now? The latest quarter does matter, but not nearly as much as longer-term fundamentals and valuation, when deciding if the stock is a buy. We cover that in our actionable full research report which you can read here, it's free.