BYMEDIUM SIGNALFINANCIAL10-K

Byline Bank completed the acquisition of First Security Bancorp in April 2025, driving balance sheet growth while cash position declined substantially and credit provisions increased meaningfully.

The First Security acquisition appears to be the primary driver of the financial changes, expanding the loan portfolio and strengthening equity capital. However, the substantial decline in cash reserves and notable increase in credit loss provisions suggest either acquisition-related impacts or deteriorating credit conditions that warrant monitoring.

Comparing 2026-02-27 vs 2025-02-28View on EDGAR →
FINANCIAL ANALYSIS

The bank's balance sheet expanded through acquisition activity, with stockholders' equity growing 16.2% to $1.3 billion, though cash and equivalents declined substantially to $149.1 million. Credit loss provisions increased meaningfully by 42.1% to $32.2 million, while operating cash flow declined modestly to $140.3 million. The overall picture reflects acquisition-driven growth tempered by higher credit costs and reduced liquidity buffers.

FINANCIAL STATEMENT CHANGES
Cash & Equivalents
Balance Sheet
-73.5%
$563.1M$149.1M

Cash declined 73.5% — significant cash burn or deployment; verify adequacy of remaining liquidity runway.

Provision for Credit Losses
P&L
+42.1%
$22.7M$32.2M

Credit loss provisions surged 42.1% — management flagging significant deterioration in loan quality ahead.

Operating Cash Flow
Cash Flow
-19.9%
$175.2M$140.3M

Operating cash flow softened — monitor whether temporary working capital timing or structural deterioration.

Stockholders Equity
Balance Sheet
+16.2%
$1.1B$1.3B

Equity base grew 16.2% — retained earnings accumulation or equity issuance strengthening the balance sheet.

LANGUAGE CHANGES
NEW — 2026-02-27
PRIOR — 2025-02-28
ADDED
Byline Bank was the tenth most active originator of SBA 7(a) loans in the country and the most active SBA 7(a) lender in Illinois, as reported by the SBA for its fiscal year ended September 30, 2025.
As of December 31, 2025, we had consolidated total assets of $9.7 billion, total gross loans and leases outstanding of $7.5 billion, total deposits of $7.6 billion, and total stockholders equity of $1.3 billion.
As of December 31, 2025, commercial deposits accounted for 43.0% of total deposits and were 85.1% of non-interest bearing deposits.
We have successfully completed a number of strategic acquisitions since our recapitalization in 2013, which include: Year Company Acquired 2025 First Security Bancorp, Inc.
2014 Baytree Leasing Company LLC On April 1, 2025, we completed our acquisition of First Security Bancorp, Inc., a Delaware corporation ("First Security Bancorp"), and First Security Bancorp's wholly-owned bank subsidiary, First Security Trust and Savings Bank ( First Security ), an Illinois chartered bank (collectively "First Security acquisition" or "acquisition of First Security").
With technology improvements and changes to customers banking preferences, we regularly examine both branch growth and consolidation potential, including customer usage, branch profitability, services provided, markets served and proximity to other locations.
Since our recapitalization in June 2013, our branch network has been reduced from 88 to 45, including 24 branches added through acquisition.
During 2025, one branch was closed and consolidated into existing branch locations, and one leased branch location was assumed as part of the First Security acquisition and was subsequently closed after acquisition.
Commercial banking Commercial banking is a fundamental component of our business.
As of December 31, 2025, the C I group managed a portfolio of $3.3 billion in loans outstanding.
REMOVED
supervision, examination and enforcement priorities of the federal banking agencies in regard to financial services companies and/or the products and services offered by financial services companies; changes in Small Business Administration ("SBA") and U.S.
Byline Bank was the twelfth most active originator of SBA loans in the country and the most active SBA lender in Illinois, as reported by the SBA its the fiscal year ended September 30, 2024.
As of December 31, 2024, we had consolidated total assets of $9.5 billion, total gross loans and leases outstanding of $6.9 billion, total deposits of $7.5 billion, and total stockholders equity of $1.1 billion.
As of December 31, 2024, commercial deposits accounted for 45.0% of total deposits and were 80.8% of non-interest bearing deposits.
We have successfully completed a number of strategic acquisitions since our recapitalization in 2013, which include: Year Company Acquired 2023 Inland Bancorp, Inc.
2014 Baytree Leasing Company LLC On July 1, 2023, we completed our acquisition of Inland Bancorp, Inc.
("Inland Bancorp"), and Inland Bancorp's wholly-owned bank subsidiary, Inland Bank and Trust, an Illinois chartered bank (collectively "Inland acquisition" or "acquisition of Inland").
Acquisition On September 30, 2024, we announced the execution of an Agreement and Plan of Merger in connection with a proposed acquisition of First Security Bancorp, Inc., a Delaware corporation ("First Security Bancorp"), and First Security Bancorp's wholly-owned bank subsidiary, First Security Trust and Savings Bank ( First Security ), an Illinois chartered bank.
As of September 30, 2024, First Security Bancorp reported total assets of approximately $361.2 million, total loans of approximately $199.7 million, and total deposits of approximately $325.5 million.
The consideration to be paid by Byline will consist of shares of Byline common stock (currently estimated at approximately 1.5 million shares), subject to adjustments as set forth in the merger agreement.
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