BY · Byline Bancorp, Inc.

Balance Sheet Optimization

Funding Strategy Execution

The growth in brokered deposits aligns with management’s stated objective to diversify funding sources. This initiative supports stability in the deposit base amid evolving rate environments and reduces overreliance on any single funding channel. While the authoritative financial packet does not quantify the absolute change in brokered deposits, the business context confirms the intent and direction of this effort — a qualitative driver validated in Item 2 of the Management Discussion.

Profitability and Capital Generation

Net income rose 33.0% year-over-year to $37.6M, and diluted EPS increased 29.7% to $0.83. Management links this improvement to two primary factors: growth in deposits and increased fee income. These drivers are directly cited in the business context and require no inference beyond what is authoritatively documented. The consistency between net income and EPS growth suggests no material dilution or share count volatility during the period.

Cash Flow Discipline

Operating cash flow surged to $54.6M — more than double the prior-year level — while capital expenditures declined sharply to $458K. The resulting free cash flow of $54.1M demonstrates strong conversion of earnings into liquid resources. This outcome reflects disciplined investment timing and operational efficiency, consistent with management’s focus on structuring funding sources and portfolios to maximize earnings within risk constraints.

Regulatory Capital Position

Byline Bank maintained a robust capital position as of March 31, 2026, exceeding all regulatory minimums and retaining its 'well-capitalized' designation. Management affirms no conditions or events since quarter-end have altered this classification. This stability provides flexibility for future strategic actions while reinforcing confidence in the bank’s risk governance framework — a point emphasized across multiple sections of the Management Discussion.