Byline Bancorp Announces Record Q3 Earnings and Acquisition of Illinois State Bancorp
Byline Bancorp (BY) reported record net income and revenue for the third quarter of 2026, characterized by strong deposit growth and disciplined capital management. The bank successfully grew deposits by $168 million to a total of $8 billion, achieving an annualized deposit growth rate of 8.5%. This expansion has allowed the company to reduce wholesale borrowings by $80 million, strengthening its funding base. To facilitate strategic scaling, Byline entered into a definitive agreement to acquire Illinois State Bancorp. The acquisition is intended to push the bank's assets past the $10 billion threshold while expanding its presence in Chicago. Management has strategically timed the deal to close in 2027, which allows them to defer increased regulatory costs until 2028. During the quarter, the company also demonstrated commitment to shareholder returns by increasing its dividend by nearly 17% and repurchasing $20.2 million in common stock.