Regional banking company Byline Bancorp (NYSE: BY) reported Q3 2026 results beating Wall Street’s revenue expectations, with sales up 4.6% year on year to $121 million. Its non-GAAP profit of $0.94 per share was 15% above analysts’ consensus estimates.
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Byline Bancorp (BY) Q3 2026 highlights:
- Net Interest Income: $103.7 million vs analyst estimates of $101.7 million (3.8% year-on-year growth, 2% beat)
- Net Interest Margin: 4.3% vs analyst estimates of 4.2% (10.7 basis point beat)
- Revenue: $121 million vs analyst estimates of $116.7 million (4.6% year-on-year growth, 3.7% beat)
- Efficiency Ratio: 48.4% vs analyst estimates of 50.6% (222.5 basis point beat)
- Adjusted EPS: $0.94 vs analyst estimates of $0.82 (15% beat)
- Tangible Book Value per Share: $24.14 vs analyst estimates of $24.99 (6.9% year-on-year growth, 3.4% miss)
- Market Capitalization: $1.69 billion
Roberto R. Herencia, Executive Chairman and CEO of Byline Bancorp, commented, "We delivered record earnings and returned more than $20 million of capital to stockholders through share repurchases and a 16.7% increase in our common dividend to $0.14 per share during the third quarter. We also continued to advance our strategic priorities with the recently announced acquisition of Illinois State Bancorp, Inc., parent of First Nations Bank and The Bank of Bourbonnais. The transaction expands our market presence, strengthens our core deposit base, and adds talented bankers and long-standing customer relationships."
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
Two primary revenue streams drive bank earnings. While net interest income, which is earned by charging higher rates on loans than paid on deposits, forms the foundation, fee-based services across banking, credit, wealth management, and trading operations provide additional income. Unfortunately, Byline Bancorp’s 9% annualized revenue growth over the last five years was mediocre. This fell short of our benchmark for the banking sector and is a tough starting point for our analysis.
Long-term growth is the most important, but within financials, a half-decade historical view may miss recent interest rate changes and market returns. Byline Bancorp’s recent performance shows its demand has slowed as its annualized revenue growth of 7.8% over the last two years was below its five-year trend. We’re wary when companies in the sector see decelerations in revenue growth, as it could signal changing consumer tastes aided by low switching costs. 
Note: Quarters not shown were determined to be outliers because they were impacted by outsized investment gains/losses that are not indicative of the recurring fundamentals of the business.
This quarter, Byline Bancorp reported modest year-on-year revenue growth of 4.6% but beat Wall Street’s estimates by 3.7%.
Net interest income made up 84.7% 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.
Our experience and research show the market cares primarily about a bank’s net interest income growth as non-interest income is considered a lower-quality and non-recurring revenue source.
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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.
This explains why tangible book value per share (TBVPS) stands as the premier banking metric. TBVPS strips away questionable intangible assets, revealing concrete per-share net worth that investors can trust. On the other hand, EPS is often distorted by mergers and flexible loan loss accounting. TBVPS provides clearer performance insights.
Byline Bancorp’s TBVPS grew at an impressive 7.1% annual clip over the last five years. TBVPS growth has also accelerated recently, growing by 9.3% annually over the last two years from $20.21 to $24.14 per share.
Over the next 12 months, Consensus estimates call for Byline Bancorp’s TBVPS to grow by 13.8% to $27.47, decent growth rate.
Key takeaways from Byline Bancorp’s Q3 results
We enjoyed seeing Byline Bancorp beat analysts’ revenue expectations this quarter. We were also glad its EPS outperformed Wall Street’s estimates. On the other hand, its tangible book value per share missed. Overall, we still think this was a decent quarter with some key metrics above expectations. The stock traded up 2.7% to $39.04 immediately after reporting.
Byline Bancorp put up rock-solid earnings, but one quarter doesn’t necessarily make the stock a buy. Let’s see if this is a good investment. If you’re making that decision, you should consider the bigger picture of valuation, business qualities, as well as the latest earnings. We cover that in our actionable full research report which you can read here (it’s free).
