Byline Bancorp, Inc. (BY) Stock Analysis

Why this analysis is different

• A sector-relative MoonshotScore — five pillars (business quality, financial safety, valuation, growth durability, momentum) re-ranked nightly against the full universe of US-listed common stocks.
• An AI Council read across up to eight perspectives — value, macro, quantitative, and momentum lenses — that shows where they disagree instead of averaging the tension away.
• Figures come straight from FMP and Yahoo Finance filings data. The AI writes the narrative around the numbers — it never edits the numbers.

Byline Bancorp, Inc. (BY) Financial Services Profile

Byline Bancorp, Inc., operating as Byline Bank, delivers comprehensive banking solutions to small and medium-sized businesses, commercial real estate ventures, and consumers, primarily in the Chicago metropolitan area. With a focus on relationship banking and community involvement, Byline distinguishes itself through tailored services and a strong regional presence, evidenced by its 43 branch locations.

What Is the Investment Thesis for BY?

With a P/E ratio of 11.53 and a profit margin of 22.0%, the company demonstrates solid profitability. A dividend yield of 1.33% provides a steady income stream for investors. Growth catalysts include expansion of its SBA and USDA lending programs and further penetration into the commercial real estate market. Potential risks include interest rate fluctuations and increased competition from larger national banks. The company's beta of 0.81 suggests lower volatility compared to the broader market.

Based on FMP financials and quantitative analysis

BY Key Highlights

Market capitalization of $1.74B reflects Byline Bancorp's established position in the regional banking sector.

• Profit margin of 22.0% indicates efficient operations and strong profitability compared to the industry average.
• Gross margin of 67.7% demonstrates effective cost management and revenue generation capabilities.
• Dividend yield of 1.33% provides a consistent return for investors, enhancing the stock's attractiveness.
• Beta of 0.81 suggests lower volatility compared to the broader market, making it a potentially stable investment.

Who Are BY's Competitors?

BY is benchmarked below against 8 industry peers on price, market cap, and our AI MoonshotScore.

AI Score by Stock Expert AI · Price data: FMP / Yahoo Finance

What Are BY's Key Strengths?

Strong presence in the Chicago metropolitan area.

• Diversified revenue streams.
• Expertise in SBA and USDA lending.
• Experienced management team.

What Are BY's Weaknesses?

Limited geographic diversification.

• Reliance on local economic conditions.
• Smaller scale compared to larger national banks.
• Higher cost structure than larger competitors.

What Could Drive BY Stock Higher?

Expansion of digital banking platform to attract and retain customers.

• Strategic acquisitions of smaller banks to expand market presence.
• Increased focus on commercial real estate financing to capitalize on market opportunities.
• Growth of wealth management services to cater to high-net-worth individuals.

What Are the Key Risks for BY?

Financial-distress signal — its Altman Z-Score of -0.45 sits in the distress zone (elevated bankruptcy risk).

• Insider selling — insiders were net sellers of roughly $24.7M recently.
• Increased competition from larger banks and fintech companies.
• Interest rate fluctuations impacting net interest margin.
• Regulatory changes affecting capital requirements and compliance costs.
• Economic downturn in the Chicago metropolitan area impacting loan performance.

What Are the Growth Opportunities for BY?

• Expansion of SBA and USDA Lending Programs: Byline can capitalize on government-backed lending programs to increase its loan portfolio and revenue. The SBA and USDA loans offer attractive terms and reduced risk, making them appealing to small businesses and agricultural enterprises. The market for SBA lending is estimated at $30 billion annually, providing ample opportunity for Byline to grow its market share. Timeline: Ongoing.
• Increased Focus on Commercial Real Estate Financing: Byline can further penetrate the commercial real estate market in the Chicago metropolitan area. With a growing demand for office, retail, and industrial spaces, Byline can offer tailored financing solutions to developers and investors. The commercial real estate market in Chicago is valued at over $100 billion, presenting a significant growth opportunity. Timeline: Ongoing.
• Enhancement of Digital Banking Platform: Investing in and improving its digital banking platform can attract and retain customers, reduce operational costs, and expand its geographic reach. By offering a seamless online and mobile banking experience, Byline can compete with larger banks and fintech companies. The digital banking market is projected to reach $8 trillion by 2030. Timeline: Ongoing.
• Strategic Acquisitions of Smaller Banks: Byline can pursue strategic acquisitions of smaller community banks to expand its branch network and customer base. Acquisitions can provide access to new markets and synergies, enhancing Byline's overall profitability and market position. The consolidation trend in the banking industry creates opportunities for Byline to grow through acquisitions. Timeline: Ongoing.
• Expansion of Wealth Management Services: Byline can grow its wealth management services to cater to high-net-worth individuals and families. By offering financial planning, investment advisory, and private banking services, Byline can generate additional fee income and build long-term relationships with its clients. Timeline: Ongoing.

What Are BY's Competitive Advantages?

• Strong regional presence in the Chicago metropolitan area.
• Established relationships with local businesses and communities.
• Expertise in SBA and USDA lending programs.
• Diversified revenue streams from lending, deposits, and wealth management.

What Does BY Do?

Founded in 1914 and headquartered in Chicago, Illinois, Byline Bancorp, Inc. has evolved from Metropolitan Bank Group, Inc. to a prominent regional bank holding company. Operating through its subsidiary, Byline Bank, the company provides a diverse array of banking products and services tailored to small and medium-sized businesses, commercial real estate ventures and financial sponsors, and individual consumers. Byline's offerings include retail deposit products such as non-interest-bearing accounts, money market demand accounts, savings accounts, interest-bearing checking accounts, and time deposits. The bank also provides ATM and debit cards, along with online, mobile, and text banking services. On the lending side, Byline provides term loans, revolving lines of credit, and construction financing. It also specializes in senior secured financing solutions for private equity-backed lower middle market companies, Small Business Administration (SBA) and United States Department of Agriculture (USDA) loans, and treasury management products and services. Byline further extends its services to equipment vendors and their end users through specialized financing solutions. The company also offers investment, trust, and wealth management services, encompassing fiduciary and executor services, financial planning solutions, investment advisory services, and private banking services for foundations, endowments, and high-net-worth individuals. Byline operates 43 branch locations in the Chicago metropolitan area and one branch in Brookfield, Wisconsin, underscoring its commitment to local markets.

What Products and Services Does BY Offer?

• Offers retail deposit products, including checking, savings, and money market accounts.
• Provides commercial lending services, including term loans and lines of credit.
• Offers commercial real estate financing solutions.
• Provides senior secured financing to private equity-backed companies.
• Administers SBA and USDA loans.
• Delivers treasury management products and services.
• Offers equipment financing solutions.
• Provides investment, trust, and wealth management services.

How Does BY Make Money?

• Generates revenue through interest income from loans.
• Earns fees from deposit accounts and other banking services.
• Provides wealth management and trust services for a fee.
• Offers financing solutions for equipment vendors.

What Industry Does BY Operate In?

Byline Bancorp operates within the competitive regional banking sector, which is characterized by increasing consolidation and technological disruption. The industry is seeing a shift towards digital banking solutions and a greater emphasis on customer experience. Byline's focus on small and medium-sized businesses and commercial real estate allows it to carve out a niche in the Chicago metropolitan area. The regional banking market is influenced by local economic conditions, interest rate environments, and regulatory changes. Byline competes with both larger national banks and smaller community banks, requiring a balance of scale and personalized service.

Who Are BY's Key Customers?

• Small and medium-sized businesses in the Chicago metropolitan area.
• Commercial real estate developers and investors.
• Private equity-backed lower middle market companies.
• Individual consumers seeking banking services.

Over the past six months, Byline Bancorp, Inc. insiders filed 14 SEC Form 4 transactions — 6 sales and 8 purchases. On net that is roughly 625K shares disposed (about $24.7M), a signal worth weighing alongside the fundamentals.

Quarterly Financial Performance: Byline Bancorp, Inc.

Revenue for Byline Bancorp, Inc. came in at $160.1M during Jun 2026, a 4.3% improvement versus the preceding quarter. The company recorded net income of $40.2M, with diluted EPS of $0.88. Quarter-over-quarter revenue has been mixed, typical for a small-cap company operating in Financial Services. Across the four most recent quarters, BY averaged $0.82 in diluted EPS.

BY Valuation & Market Position

With a $1.74B market cap, Byline Bancorp, Inc. sits in the small-cap segment of the market. Analyst price targets span from $40.00 to $46.00, with a consensus of $43.00. At the current price of $38.38, that implies approximately 12% upside potential. Relative to its peer group, BY's quantitative score of 78/100 is roughly in line with the peer average of 87/100.

Return on equity for Byline Bancorp, Inc. stands at 11.6%, a gauge of how efficiently it converts shareholder capital into profit. Return on assets is 1.4%, showing how much profit it generates from its asset base. BY trades at a trailing price-to-earnings ratio of 11.53, below the Financial Services sector average of ~17.50x.

Byline Bancorp, Inc.'s Piotroski F-Score is 7/9, a 9-point checklist of profitability, leverage and efficiency — signaling solid underlying fundamentals. Its Altman Z-Score of -0.45 places it in the distress zone, a signal of elevated financial risk.

Byline Bancorp, Inc. has beaten Wall Street's EPS estimate in 8 of its last 8 reported quarters — a consistent record of delivering on expectations. Reported results have landed about 10.6% above estimates on average.

Wall Street analysts project Byline Bancorp, Inc. revenue of about $465.1M for fiscal 2026, with EPS near $3.38. The estimate reflects 4 contributing analysts.

Company Profile

Byline Bancorp, Inc. operates in the Banks - Regional industry within the Financial Services sector. It is headquartered in Chicago, US. The company is led by CEO Roberto R. Herencia. BY has traded publicly since 2017.

BY Financials

BY Latest News

BY Analyst Consensus

BY MoonshotScore

What Investors Ask About Byline Bancorp, Inc. (BY) — Financial Services

Disclaimer: This content is for informational purposes only and does not constitute investment advice. Always do your own research and consult a financial advisor.

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