A Look at Byline Bancorp’s Valuation Following Q3 Earnings Growth and Dividend Reaffirmation

Byline Bancorp (NYSE:BY) just released its third-quarter 2025 financials, showing an increase in both net interest income and net income compared to last year. The board also reaffirmed a regular cash dividend for shareholders, keeping returns as a primary focus.

See our latest analysis for Byline Bancorp.

Recent updates, including robust quarterly results and continued M&A interest, have not gone unnoticed by investors. While this year’s share price has faced a modest decline, long-term shareholders have enjoyed a total return of 86% over five years. This result indicates meaningful upside for patient investors even as near-term momentum fluctuates.

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With shares currently trading well below analyst targets and impressive growth in both revenue and earnings, the question is whether Byline Bancorp's upside is still untapped or if markets have already accounted for its next leg of growth.

Most Popular Narrative: 16.5% Undervalued

Byline Bancorp’s most widely followed narrative points to a fair value measurably above its current share price, hinting at untapped potential for investors willing to consider the company's forward growth levers.

The successful integration of First Security, including immediate cost synergies and system upgrades, has expanded Byline Bancorp's lending and deposit base while improving operational efficiency. This sets the stage for higher net interest income and improved net margins going forward.

Read the complete narrative.

Curious how the narrative’s growth thesis is built? The backbone is not just revenue expansion, but a dramatic overhaul of operational efficiency and future profit expectations. The key factor driving this valuation is bold estimates for improved margins and an earnings trajectory not usually seen in regional banks. Uncover the figures that shape this bullish target.

Result: Fair Value of $32.20 (UNDERVALUED)

Have a read of the narrative in full and understand what's behind the forecasts.

However, regional concentration and challenges with digital transformation could limit Byline Bancorp’s upside if local markets weaken or if tech adoption falls short.

Find out about the key risks to this Byline Bancorp narrative.

Build Your Own Byline Bancorp Narrative

You’re not limited to just one perspective, and if you’d rather dig into the numbers and shape your own outlook, you can build a narrative in just a few minutes. Do it your way.

A great starting point for your Byline Bancorp research is our analysis highlighting 5 key rewards and 1 important warning sign that could impact your investment decision.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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