Regional banking company Byline Bancorp (NYSE: BY) missed Wall Street’s revenue expectations in Q1 CY2026, but sales rose 9% year on year to $112.4 million. Its non-GAAP profit of $0.83 per share was 11% above analysts’ consensus estimates.

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Roberto R. Herencia, Executive Chairman and CEO of Byline Bancorp, commented, "We had a solid start to 2026, delivering balanced and resilient performance amid heightened market volatility. During the quarter, we continued to return capital to our stockholders, repurchasing nearly $10 million of common stock and increasing our quarterly dividend by 20% to $0.12 per share. We remain focused on driving value for our stockholders as we work toward 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

From lending activities to service fees, most banks build their revenue model around two income sources. Interest rate spreads between loans and deposits create the first stream, with the second coming from charges on everything from basic bank accounts to complex investment banking transactions. Regrettably, Byline Bancorp’s revenue grew at a mediocre 9.7% compounded annual growth rate over the last five years. This fell short of our benchmark for the banking sector and is a poor baseline 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 recent performance shows its demand has slowed as its annualized revenue growth of 7.1% 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, impacted by outsized investment gains/losses that are not indicative of the recurring fundamentals of the business.

This quarter, Byline Bancorp’s revenue grew by 9% year on year to $112.4 million, missing Wall Street’s estimates.

Net interest income made up 83.6% 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.

Markets consistently prioritize net interest income growth over fee-based revenue, recognizing its superior quality and recurring nature compared to the more unpredictable non-interest income streams.

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Tangible Book Value Per Share (TBVPS)

Banks profit by intermediating between depositors and borrowers, making them fundamentally balance sheet-driven enterprises. Market participants emphasize balance sheet quality and sustained book value growth when evaluating these institutions.

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. Traditional metrics like EPS are helpful but face distortion from M&A activity and loan loss accounting rules.

Byline Bancorp’s TBVPS grew at an excellent 8.5% annual clip over the last five years. TBVPS growth has also accelerated recently, growing by 14% annually over the last two years from $18.29 to $23.79 per share.

Over the next 12 months, Consensus estimates call for Byline Bancorp’s TBVPS to grow by 13.1% to $26.91, decent growth rate.

Key Takeaways from Byline Bancorp’s Q1 Results

It was good to see Byline Bancorp beat analysts’ EPS expectations this quarter. We were also happy its net interest income narrowly outperformed Wall Street’s estimates. On the other hand, its revenue slightly missed and its tangible book value per share fell slightly short of Wall Street’s estimates. Still, this was a decent quarter. The stock traded up 2.1% to $33.80 immediately following the results.

So do we think Byline Bancorp is an attractive buy at the current price? 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).