Byline Bancorp, Inc. (BY): Business Model Canvas [Dec-2025 Updated]

You're digging into Byline Bancorp, Inc.'s engine room, and honestly, what you'll find is a focused regional player doubling down on commercial growth, not chasing every shiny object. As a former head analyst, I can tell you their model hinges on being the preeminent commercial bank in Chicago, backed by a top-tier national SBA lending machine. With assets hitting nearly $9.8 billion by Q3 2025 and a disciplined approach to integrating acquisitions, this canvas breaks down exactly how they turn that $7.8 billion deposit base into shareholder value. Dive in below to see the specific partnerships and revenue streams driving their disciplined expansion.

Byline Bancorp, Inc. (BY) - Canvas Business Model: Key Partnerships

Byline Bancorp, Inc. relies on several external entities to execute its strategy, particularly in government-backed lending and specialized finance. The bank is recognized as one of the top U.S. Small Business Administration lenders by volume, having received the 2024 SBA 7(a), 504 and Expert Lender of the Year awards in early August 2025. Furthermore, Byline Bank was the Illinois Small Business Administration's SBA 7(a) Lender of the Year for the 16th year in a row as of the end of Q2 2025. As of March 31, 2025, the guaranteed portion of U.S. government guaranteed loans included in total loans and leases stood at $100.4 million.

For its Sponsor Finance division, Byline Bancorp, Inc. partners with private equity firms to provide senior secured financing. As of March 31, 2025, the sponsor finance portfolio held $704.4 million in outstanding loans, spread across 62 portfolio companies. Management noted that this portfolio has not seen losses since its inception as of Q1 2025.

Capital market activities and strategic transactions involve specific financial and legal advisors. For instance, in August 2025, Byline Bancorp, Inc. completed a private placement of $75.0 million in subordinated notes. Piper Sandler & Co. served as the sole placement agent for this offering. Legal counsel for this transaction included Vedder Price P.C. for Byline and Freshfields US LLP for the placement agent.

The scale of Byline Bancorp, Inc.'s operations, with total assets reaching approximately $9.7 billion as of June 30, 2025, necessitates relationships with correspondent banks for broader treasury and payment services that extend beyond its 45 branch locations in the Chicago and Milwaukee metropolitan areas.

Here is a snapshot of the key quantifiable partnership metrics as of early to mid-2025:

Key financial and legal advisors involved in capital and strategic activities include:

• Piper Sandler & Co. (Sole placement agent for August 2025 debt offering)
• Vedder Price P.C. (Legal advisor for the Company on the August 2025 debt offering)
• Freshfields US LLP (Legal advisor to the placement agent on the August 2025 debt offering)
• JPMorgan Chase & Co. (Noted major shareholder, indicating capital market engagement)

Byline Bancorp, Inc. (BY) - Canvas Business Model: Key Activities

You're looking at the core engine of Byline Bancorp, Inc. as of late 2025. The key activities here are all about disciplined growth and integration following a major move.

A primary focus is the Commercial and industrial (C&I) loan portfolio growth. This segment is showing real demand, with C&I loans making up 40% of the total loan portfolio as of the third quarter of 2025. That's up 2 percentage points from the year prior, showing businesses are actively seeking capital for expansion, not just defense.

The firm is also busy with executing M&A integration, specifically the merger with First Security Bancorp, Inc., which closed on April 1, 2025. This transaction brought total assets to approximately $9.8 billion based on year-end 2024 figures, and the integration was noted as clean from the second quarter onward.

Another critical activity involves the origination and sale of U.S. government guaranteed loans. While this drives business, the volume of gains recognized from sales can fluctuate; for example, the volume sold in the first quarter of 2025 was $70.2 million, down from $88.9 million in the fourth quarter of 2024. The allowance for credit losses also had to be increased to support these government-guaranteed portfolios.

You need to keep an eye on the funding side, which involves managing a deposit base of approximately $7.8 billion. As of the third quarter of 2025, total deposits hit exactly $7.8 billion, showing stability in their funding structure.

Finally, the activity of maintaining a strong capital position is paramount. Byline Bancorp has continued to accumulate surplus capital, with its Common Equity Tier 1 (CET1) ratio increasing to over 12% by the third quarter of 2025, giving the bank a healthy cushion above its regulatory minimum.

Here's a quick view of the loan portfolio composition around the time of the merger and in Q3 2025:

The operational focus also includes several ongoing management tasks:

• Driving higher net interest income while managing margin.
• Preparing for crossing the $10 billion total asset threshold.
• Achieving top quartile profitability metrics.
• Controlling expenses to maintain efficiency.

The capital strength is further detailed by the CET1 ratio standing at 11.78% at the end of the first quarter of 2025, which then improved to over 12% by the third quarter.

Finance: draft 13-week cash view by Friday.

Byline Bancorp, Inc. (BY) - Canvas Business Model: Key Resources

You're looking at the hard assets Byline Bancorp, Inc. (BY) relies on to execute its commercial banking strategy in the competitive Chicago and Milwaukee markets. These aren't just line items; they are the engine room.

• Total assets of approximately $9.8 billion as of September 30, 2025.
• Network of 45 branch locations across Chicago and Milwaukee metro areas as of Q3 2025. The prior year figure was 46.
• Experienced commercial banking and SBA lending teams; Byline Bank is one of the top Small Business Administration lenders in the United States by volume.
• Core banking technology and online systems platform supporting its full-service commercial bank operations.
• Strong tangible book value per share growth, up 12% year-on-year in Q3 2025.

The balance sheet itself represents a massive resource, especially when you look at the composition. Here's a quick look at the scale as of the end of Q3 2025:

That loan portfolio growth is key; it shows the teams are actively deploying capital. Also, consider the quality of that capital base. The tangible book value per share growth of 12% year-on-year shows the firm is effectively compounding shareholder equity, which is a critical resource for absorbing unexpected losses or funding future growth. The CET1 ratio was reported at 12.15% in Q3 2025, giving them a healthy buffer above regulatory minimums.

The physical footprint, while not growing rapidly, is concentrated in high-value metro areas. You have 45 physical branches serving the Chicago and Milwaukee markets, which is the direct interface for their relationship-focused commercial and community banking model. This physical presence supports the human capital-the experienced teams-who originate the loans and manage the client relationships. Honestly, for a bank of this size, the expertise in commercial and SBA lending is what drives the revenue stream.

Finance: draft 13-week cash view by Friday.

Byline Bancorp, Inc. (BY) - Canvas Business Model: Value Propositions

You're looking at what Byline Bancorp, Inc. offers its customers and shareholders-the core reasons they choose the bank over others in the competitive Chicago market.

Byline Bancorp, Inc. positions itself with the explicit goal of becoming the preeminent commercial bank in Chicago. That's a clear target, and their recent performance shows they are pushing hard on that front. For instance, their total assets reached $9.8 billion as of September 30, 2025, showing scale in the region.

A major part of their value comes from deep specialization. They offer expertise in complex commercial lending, which is where you find the more intricate financing needs of growing businesses. Also, they provide small ticket equipment leasing solutions, which helps smaller operations acquire necessary assets without tying up too much capital.

To be fair, their national profile is significantly bolstered by their Small Business Administration (SBA) lending prowess. Byline Bank is consistently recognized as a top-tier SBA lender nationally. For fiscal year 2024, they originated $504.6 million in SBA 7(a) loans nationwide. They specialize in this government-backed financing, which often means better terms for the small businesses that qualify. They also claim to be a top national SBA lender for FY2025.

Still, they maintain a full-service community banking approach for both local businesses and consumers. This means they cover the day-to-day banking needs alongside the more complex commercial services. This dual focus helps them capture a wider range of the local financial relationship. Their Q3 2025 Net Interest Income hit $99.9 million, showing the core lending business is generating solid revenue.

For you as an investor, Byline Bancorp, Inc. offers consistent capital returns. They maintain a quarterly dividend of $0.10 per share. The Board declared this amount on October 21, 2025, for payment on November 18, 2025. This level of return has been consistent through 2025, with the dividend per share being $0.10 for all four reported quarters of the year. This translates to an annual dividend of $0.40 per share, and based on Q3 2025 earnings per share of $0.82 or $0.83, the payout ratio is quite sustainable, sitting around 13.70% to 14.28%.

Here's a quick look at some key figures that back up these value propositions:

The core offerings that define Byline Bancorp, Inc.'s value proposition include:

• Positioning as the leading Chicago commercial bank.
• Expertise in complex commercial lending deals.
• Offering small ticket equipment leasing services.
• Top-tier national ranking in SBA 7(a) lending volume.
• Delivering consistent quarterly shareholder returns.

Finance: draft 13-week cash view by Friday.

Byline Bancorp, Inc. (BY) - Canvas Business Model: Customer Relationships

You're focused on being the preeminent commercial bank in Chicago, so your customer relationships are built on deep local knowledge and dedicated service, especially for your business clients. Honestly, the numbers show this focus is paying off in loan growth.

Dedicated relationship managers for commercial customers

Byline Bancorp, Inc. clearly prioritizes its commercial relationships. That focus is visible in the loan mix, which shows a strong commitment to local businesses. Commercial and industrial loans made up 40% of the total loan portfolio as of the third quarter of 2025. That's up 2 percentage points from the year before, illustrating that local companies are eager to invest and you're there to fund them. The CEO mentioned deepening these relationships with commercial customers back in the first quarter of 2025, so this isn't a new tactic; it's the core of the strategy.

Here's a quick look at the commercial concentration in the loan book as of Q3 2025:

What this estimate hides is the specific number of dedicated managers, but the heavy concentration in C&I lending strongly implies a high-touch, relationship-driven sales and service model for those clients.

High-touch, customer-centric service model, especially post-acquisition

You've been busy integrating the First Security acquisition, which closed on April 1, 2025. That deal was definitely about adding key relationships, bringing in $280 million in deposits and $153 million in loans, plus those important commercial connections. The executive team made a point to welcome those former First Security customers in the second quarter of 2025, signaling a commitment to retaining that business through personalized service rather than letting them drift. You're not just processing transactions; you're managing a portfolio of business relationships.

Digital self-service options via upgraded online banking systems

To support your relationship bankers, Byline Bancorp, Inc. completed a core systems upgrade to its online banking platform in the second quarter of 2025. This upgrade helps ensure that while the service is high-touch, the underlying technology is modern. Nationally, the trend is clear: as of 2025, over 83% of U.S. adults use some form of digital banking service. Furthermore, a significant majority of consumers-around 77%-prefer managing their accounts through a mobile app or a computer. Your upgraded system has to meet that expectation for convenience, even if your primary focus remains commercial lending.

Cultivating strong, enduring relationships in core Midwest markets

Your enduring relationships are rooted in your physical footprint across the Midwest, specifically the Chicago and Milwaukee metro areas. As of early 2025, Byline Bank operated 46 branch locations across these markets. This physical presence supports the commercial focus. In the Chicago area specifically, total deposits reached $7.8 billion in the third quarter of 2025, capturing a 1.3% share of that local market. It's important to note that commercial deposits made up a healthy 46.9% of that total deposit base in Q3 2025, showing where the relationship strength lies.

Here are some key metrics reflecting your market presence and deposit mix as of late 2025:

• Branch locations in Chicago and Milwaukee metro areas: 46 (as of Q1 2025)
• Total Deposits (Q3 2025): $7.8 billion
• Chicago-area market deposit share (Q3 2025): 1.3%
• Commercial Deposits as a percentage of Total Deposits (Q3 2025): 46.9%

Finance: draft the 13-week cash view by Friday.

Byline Bancorp, Inc. (BY) - Canvas Business Model: Channels

You're looking at how Byline Bancorp, Inc. gets its products and services-loans, deposits, and specialized finance-to its customers across the Chicago and Milwaukee markets as of late 2025. The physical footprint remains a core part of this strategy, even as digital adoption grows.

The physical branch network of 46 locations serves as the high-touch anchor for community engagement and deposit gathering across the Chicago and Milwaukee metropolitan areas. This network supports a bank with total assets reaching approximately $9.7 billion as of June 30, 2025. The branch system is fundamental to maintaining the culture of proactive solutions and deep-rooted local relationships.

The Commercial and Sponsor Finance Group direct sales teams are the engine for high-value commercial relationships. These teams directly target small- and medium-sized businesses and financial sponsors. Their effectiveness is reflected in the growth of the loan portfolio, such as the increase in the commercial and industrial loan portfolio driving net loan and lease growth in the first half of 2025.

For customer interaction, digital banking platforms for consumer and business accounts are essential for keeping pace with evolving customer preferences. While specific digital adoption rates aren't always public, the bank offers services like Zelle® to facilitate modern transaction needs, complementing the physical presence.

Specialized lending is funneled through dedicated loan production offices. These offices focus on originating specific products that require specialized underwriting or market expertise. A key area of strength channeled through these offices is the Small Business Administration (SBA) lending program, where Byline Bank has historically been a top lender in the United States.

Here's a quick look at the scale of the operation these channels support as of mid-2025:

The bank emphasizes a multi-pronged approach to client acquisition and service delivery. You can see the focus areas below:

• High-touch engagement via the 46-location branch footprint.
• Direct sales targeting for commercial and sponsor finance deals.
• Digital channels supporting everyday consumer and business transactions.
• Specialized origination through dedicated loan production offices.
• Leveraging top-tier status as an SBA lender for small business acquisition.

The integration of the First Security Bancorp, Inc. acquisition on April 1, 2025, further solidified this channel strategy, bringing combined total assets to approximately $9.9 billion immediately post-close, demonstrating the channels' capacity to absorb and integrate new business lines.

Finance: draft 13-week cash view by Friday.

Byline Bancorp, Inc. (BY) - Canvas Business Model: Customer Segments

You're focused on understanding where Byline Bancorp, Inc. gets its business, and frankly, their strategy is clearly centered on the Chicago commercial market post-acquisition of First Security Bancorp, Inc. in April 2025. As of late 2025, Byline Bancorp, Inc. positions itself as Chicago's preeminent commercial bank, serving a defined set of sophisticated and local clients.

Small- and medium-sized businesses (SMBs) in the Midwest

This segment forms the core of the lending activity. Byline Bancorp, Inc. has a long-standing commitment to this group, evidenced by being recognized as the Illinois Small Business Administration's SBA 7(a) Lender of the Year for the 16th year in a row as of August 19, 2025. The bank's total loan and lease portfolio stood at $7.33 billion at the end of Q2 2025, growing to $7.5 billion by Q3 2025.

The composition of the loan book clearly shows the commercial focus:

For the unguaranteed 7(a) SBA and USDA loans specifically, as of March 31, 2025, the exposure was $431.7 million, concentrated in specific industries:

• Retail trade: 19.9%.
• Accommodation and food services: 13.6%.
• Manufacturing: 9.3%.

Financial sponsors and private equity firms

While the primary focus is on C&I and CRE, Byline Bancorp, Inc. explicitly lists Sponsor Finance as a specialty lending area, indicating a segment of sophisticated financial players. During the Q3 2025 earnings call, management noted efforts to build infrastructure for a program targeting "program sponsors that are high users of payment products". This suggests an active, though perhaps less numerically detailed, segment focused on providing financing solutions to private equity-backed entities, likely involving leveraged lending or acquisition financing.

Local consumers and community banking clients

Byline Bank operates over 46 branches throughout the Chicago and Milwaukee metropolitan areas, underscoring its commitment to local community banking alongside its commercial push. The bank serves consumers directly through its branch network and various services, including Online & Mobile Banking, Credit Cards, and Wealth Management. Total deposits, which represent the funding base from these clients and businesses, reached $7.8 billion by Q3 2025. The bank's total assets crossed $9.8 billion as of September 30, 2025.

Commercial real estate investors and developers

Commercial real estate is a substantial component of the lending book, representing 34% of the loan portfolio at the end of Q2 2025, which breaks down into owner-occupied and non-owner occupied categories in the latest figures. The bank's total loan portfolio was $7.5 billion in Q3 2025. This segment is critical to the bank's overall asset base, as evidenced by the fact that an increase in the commercial real estate relationship contributed to a rise in non-performing assets in Q2 2025.

Byline Bancorp, Inc. (BY) - Canvas Business Model: Cost Structure

You're looking at the core expenditures that drive Byline Bancorp, Inc.'s operations, which is crucial for understanding profitability, especially as the bank manages growth and regulatory shifts.

A primary driver of interest expense is the cost of funding, specifically deposits. For the first quarter of 2025, the average cost of total deposits was reported at 2.30%. This figure reflects management's success in shifting the mix, as it was a decrease from the prior quarter, showing some relief on funding costs despite the overall rate environment.

Non-interest expense is where you see the day-to-day operational costs. For the third quarter of 2025, total non-interest expense was $60.5 million, which was up 1.5% from the second quarter of 2025. Salaries and employee benefits are a major component here. In Q3 2025, this category saw increases, principally due to higher incentive compensation accruals reflecting strong performance, alongside increased health insurance costs. It's definitely an area management watches closely, as they noted expenses remain well managed overall.

Technology and system maintenance represent necessary, ongoing costs. Looking back at Q1 2025 results, there was a specific increase to data processing expenses of $698,000, which was attributed mainly to expenses related to the First Security Bancorp merger integration.

The cost associated with potential loan deterioration, the provision for credit losses, fluctuates based on portfolio quality and economic outlook. In Q1 2025, net charge-offs for loans and leases totaled $6.6 million. To be fair, this metric can swing; for instance, the provision for credit losses recorded in the subsequent third quarter of 2025 was lower at $5.3 million.

The overall effectiveness of controlling these costs is reflected in the efficiency ratio (non-interest expense divided by total revenue). Byline Bancorp, Inc. achieved an efficiency ratio of 51.00% in the third quarter of 2025, which was an improvement of 161 basis points from the prior quarter, showing that revenue growth outpaced expense increases.

Here is a quick comparison of some key cost and efficiency metrics across the middle quarters of 2025:

You can see the expense control in action when you look at the efficiency ratio improvement, even as total non-interest expense rose from Q1 to Q3.

The main cost drivers Byline Bancorp, Inc. is managing are:

• Interest paid on total deposits, with a Q1 2025 average rate of 2.30%.
• Salaries and employee benefits, which drove a portion of the Q3 2025 non-interest expense of $60.5 million.
• Technology and data processing costs, evidenced by a $698,000 increase in Q1 2025 due to merger activity.
• Provisioning for credit losses, with Q1 2025 net charge-offs at $6.6 million.

Finance: draft 13-week cash view by Friday.

Byline Bancorp, Inc. (BY) - Canvas Business Model: Revenue Streams

You're looking at how Byline Bancorp, Inc. actually brings in its money as of late 2025. For a commercial bank focused on the Chicago market, the revenue streams are pretty standard but the execution on the numbers is what matters right now.

The primary engine for Byline Bancorp, Inc. remains the spread between what it earns on its assets and what it pays on its liabilities. For the third quarter of 2025, the Net Interest Income hit $99.9 million, which was an increase of 4.1% from the second quarter of 2025. This growth was fueled by higher interest income coming from the expanding loan and lease portfolio, along with effective management leading to lower rates paid on deposits. The tax-equivalent net interest margin (NIM) for Q3 2025 expanded to 4.27%, up nine basis points from the prior quarter.

Beyond the core lending business, non-interest income provides a significant, and sometimes variable, boost. Total Non-Interest Income for Q3 2025 was $15.9 million, marking a 9.5% increase compared to the second quarter of 2025. A key driver here is the sale of government-guaranteed loans. Specifically, Net Gains on Sales of U.S. Government Guaranteed Loans accounted for $7.0 million in the quarter, up 28.9% from the prior quarter. Byline Bancorp, Inc. sold $92.9 million of these loans in Q3 2025.

Here's a quick look at the main revenue components for Q3 2025:

The growth in the Loan and Lease Interest Income is directly tied to the expanding asset base. The total loan and lease portfolio grew by $107.5 million, or 5.8% annualized, reaching $7.5 billion in Q3 2025. This portfolio is strategically diversified, with commercial and industrial loans making up 40% of the mix.

The remaining portion of non-interest income is derived from service charges and fees. These streams reflect the day-to-day banking activity with Byline Bancorp, Inc.'s client base, which includes small and medium-sized businesses and consumers.

• Fees from deposit products, reflecting customer balances.
• Revenue from treasury management services for business clients.
• Stable fee income contributing to the $15.9 million total.
• Income from securities held in the portfolio.

Honestly, the ability to grow the loan book while keeping deposit costs managed is what pushed the Net Interest Income to a record high for the quarter. Finance: draft 13-week cash view by Friday.