Byline Bancorp

To be the bank Chicago's businesses deserve by becoming the premier relationship-based commercial bank in the Midwest.

Byline Bancorp SWOT Analysis

Updated: October 4, 2025 • 2025-Q4 Analysis

How to Use This Analysis

This analysis for Byline Bancorp was created using Alignment.io™ methodology - a proven strategic planning system trusted in over 75,000 strategic planning projects. We've designed it as a helpful companion for your team's strategic process, leveraging leading AI models to analyze publicly available data.

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The Byline Bancorp SWOT analysis reveals a classic community banking champion at a strategic crossroads. Its formidable strengths—SBA lending dominance and deep Chicago roots—are the bedrock of its high profitability. However, this very focus creates concentration risks and a scale disadvantage against larger rivals. The path forward is clear but requires disciplined execution: leverage the strong capital base for strategic M&A to diversify geographically, while simultaneously investing in digital capabilities to defend its core client base from fintech encroachment. The key is to expand without diluting the relationship-based model that defines its success. This plan must balance aggressive growth ambitions with the prudent risk management that has historically protected its balance sheet. Success hinges on scaling its community-focused advantage across a wider Midwestern footprint.

Wintrust Financial Old National Bancorp First Midwest Bank (Old National) JPMorgan Chase Bank of America

No past cycles

Mission & Vision SWOT Analysis OKR Plan Retrospective AI Strategy Data Acquisition

To be the bank Chicago's businesses deserve by becoming the premier relationship-based commercial bank in the Midwest.

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Strengths

LENDING: Top 10 SBA 7(a) lender status provides high-margin niche
MARKET: Deep entrenchment and relationships in the Chicago MSA market
CREDIT: Strong credit quality metrics with low net charge-offs (0.15%)
PROFITABILITY: Solid ROAA of 1.45% and ROATCE of 15.8% show efficiency
CAPITAL: Well-capitalized position supports organic and M&A growth

Weaknesses

CONCENTRATION: High geographic loan concentration in the Chicago MSA
SCALE: Lacks operating leverage of larger regional/national competitors
DEPOSITS: Higher cost of funds compared to money-center bank rivals
DIGITAL: Consumer-facing digital experience lags fintech & large banks
DIVERSIFICATION: Fee income is a small percentage of total revenue

Opportunities

M&A: Acquire smaller community banks in IL, WI, or IN to gain scale
EXPANSION: Recruit lending teams in adjacent markets like Milwaukee
NIM: Potential for Net Interest Margin expansion in stable rate env.
WEALTH: Cross-sell wealth management to existing business owner clients
TECHNOLOGY: Partner with fintechs to enhance digital service offerings

Threats

COMPETITION: Aggressive pricing from large banks and credit unions
RATES: Interest rate volatility compressing net interest margins (NIM)
ECONOMY: Regional economic downturn impacting borrower credit quality
REGULATION: Increased compliance costs and regulatory scrutiny on banks
FINTECH: Neobanks and online lenders targeting small business clients

Key Priorities

ACQUISITION: Pursue a strategic, EPS-accretive acquisition in a new market
LENDING: Double down on SBA & government-guaranteed lending dominance
DIGITAL: Modernize the commercial client digital onboarding experience
DEPOSITS: Launch initiatives to attract low-cost core business deposits

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Byline Bancorp OKR

Updated: October 4, 2025 • 2025-Q4 Analysis

The Byline Bancorp OKR plan is a focused and potent blueprint for disciplined growth. It wisely balances offense and defense, linking strategic M&A (FORTRESS MIDWEST) with the fortification of its core SBA niche (OWN SBA LENDING). The plan correctly identifies the primary threats—digital disruption and funding costs—and addresses them with specific, measurable objectives (DIGITAL FIRST, CHEAPEN CAPITAL). This isn't a vague vision; it's a clear mandate. Each Key Result is an outcome, not a task, pushing the team to solve for growth, efficiency, and client value simultaneously. This OKR framework provides the clarity and alignment needed to translate Byline’s strong market position into durable, long-term shareholder value.

Wintrust Financial Old National Bancorp First Midwest Bank (Old National) JPMorgan Chase Bank of America

No past cycles

Mission & Vision SWOT Analysis OKR Plan Retrospective AI Strategy Data Acquisition

To be the bank Chicago's businesses deserve by becoming the premier relationship-based commercial bank in the Midwest.

FORTRESS MIDWEST

Expand our footprint through a strategic, accretive acquisition.

PIPELINE: Identify and rank 5 potential bank acquisition targets in adjacent Midwest markets by Q2.
DILIGENCE: Complete full financial and operational due diligence on our top acquisition target by Q3.
NEGOTIATE: Sign a definitive agreement for a strategic, >$1B asset size acquisition by year-end.
INTEGRATION: Develop a comprehensive 100-day integration plan for the target institution by deal close.

OWN SBA LENDING

Solidify our #1 position in government-guaranteed lending.

VOLUME: Increase SBA 7(a) loan origination volume by 15% to reinforce our national leadership rank.
EFFICIENCY: Reduce the average SBA loan application-to-funding time by 20% through process optimization.
TEAM: Recruit and onboard 5 new top-quartile SBA Business Development Officers in expansion markets.
PROFITABILITY: Achieve a 10% increase in gain-on-sale margins from the SBA portfolio through pricing.

DIGITAL FIRST

Deliver a modern, frictionless digital experience for clients.

ONBOARDING: Launch a new digital commercial account opening process, reducing time-to-open by 50%.
ADOPTION: Increase active commercial mobile banking users by 25% through targeted marketing campaigns.
PLATFORM: Select and begin implementation of a new, unified treasury management platform for Q4 launch.
SATISFACTION: Achieve a 15-point increase in the digital channel Net Promoter Score (NPS) from clients.

CHEAPEN CAPITAL

Grow low-cost core deposits to fund our loan growth engine.

ACCOUNTS: Grow noninterest-bearing business checking accounts by 10% through targeted sales incentives.
TREASURY: Increase fee income from treasury management services by 20% to deepen client relationships.
CROSS-SELL: Achieve a 1.5x increase in treasury products per new commercial lending relationship.
COST: Lower overall cost of deposits by 10 basis points while maintaining total deposit growth.

METRICS

Net Loan Portfolio Growth: 8% Annually
Return on Average Assets (ROAA): > 1.40%
Efficiency Ratio: < 55%

VALUES

Customer First
Integrity
Community Focused
Entrepreneurial Spirit
Teamwork

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Byline Bancorp Retrospective

AI-Powered Insights

Claude

Gemini

GPT

Byline Bancorp Q4 2024 Earnings Release and Investor Presentation
Byline Bancorp 2024 Form 10-K Filing
Company Website (bylinebank.com)
SBA National 7(a) Lender Rankings Report
Financial data from Yahoo Finance (Stock Symbol: BY)

Wintrust Financial Old National Bancorp First Midwest Bank (Old National) JPMorgan Chase Bank of America

No past cycles

Mission & Vision SWOT Analysis OKR Plan Retrospective AI Strategy Data Acquisition

To be the bank Chicago's businesses deserve by becoming the premier relationship-based commercial bank in the Midwest.

Toggle Theme

What Went Well

LENDING: Strong loan growth of 8% YoY driven by commercial real estate
CREDIT: Maintained excellent credit quality with minimal net charge-offs
MARGIN: Net interest margin (NIM) remained stable despite rate pressure
SBA: Continued strong performance in the government-guaranteed loan sales
EXPENSE: Good control over noninterest expenses, improving efficiency ratio

Not So Well

DEPOSITS: Deposit growth was flat, with some outflow of noninterest-bearing
INCOME: Noninterest income declined due to lower loan sale gains
COMPETITION: Faced intense deposit pricing pressure from competitors
TECH: Rollout of new treasury management platform experienced minor delays
HIRING: Challenges in recruiting experienced commercial lenders in a tight market

Learnings

PRICING: Must be more dynamic with deposit pricing to retain core customers
DIVERSIFY: Over-reliance on SBA loan sale gains creates income volatility
ONBOARDING: Digital onboarding is now a key factor in client acquisition
RELATIONSHIPS: Core relationships are key to retaining low-cost deposits
EFFICIENCY: Continuous focus on efficiency is vital to offset margin pressure

Action Items

DEPOSITS: Launch a targeted campaign for business operating accounts
TREASURY: Create a dedicated team to accelerate treasury client onboarding
RECRUITING: Enhance compensation packages for top commercial loan officers
MARKETING: Increase digital marketing spend to generate inbound leads
M&A: Task corporate development to identify three potential bank targets

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Organization	SWOT Analysis	OKR Plan	Top 6	Retrospective

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Byline Bancorp Market

AI-Powered Insights

Claude

Gemini

GPT

Byline Bancorp Q4 2024 Earnings Release and Investor Presentation
Byline Bancorp 2024 Form 10-K Filing
Company Website (bylinebank.com)
SBA National 7(a) Lender Rankings Report
Financial data from Yahoo Finance (Stock Symbol: BY)

Founded: 2013 (Recapitalization of Metropolitan Bank Group)
Market Share: ~2% deposit share in Chicago MSA; top 10 SBA lender nationally.
Customer Base: Small to mid-sized businesses, real estate investors, professionals.
Category:
Regional Bank
SIC Code: 6021 National Commercial Banks
NAICS Code: 522110 Commercial Banking
Location: Chicago, Illinois
Zip Code: 60606 Chicago, Illinois
Congressional District: IL-7 CHICAGO
Employees: 1100

Competitors

Wintrust Financial View Analysis

Old National Bancorp View Analysis

First Midwest Bank (Old National) Request Analysis

JPMorgan Chase View Analysis

Bank of America View Analysis

Products & Services

No products or services data available

Distribution Channels

Byline Bancorp Business Model Analysis

AI-Powered Insights

Claude

Gemini

GPT

Byline Bancorp Q4 2024 Earnings Release and Investor Presentation
Byline Bancorp 2024 Form 10-K Filing
Company Website (bylinebank.com)
SBA National 7(a) Lender Rankings Report
Financial data from Yahoo Finance (Stock Symbol: BY)

Problem

SMBs need capital but are ignored by big banks
Complex government loan programs are daunting
Lack of a personal, advisory banking relationship

Solution

Relationship-managed commercial lending
Nationally recognized SBA lending expertise
Full suite of treasury management services

Key Metrics

Net Loan Growth & Net Interest Margin (NIM)
Return on Average Assets (ROAA)
Efficiency Ratio & Credit Quality Ratios

Unique

Big bank capabilities, community bank service
Top 10 national SBA lender status
Deep roots and network in the Chicago market

Advantage

Specialized government-lending platform
Sticky, trust-based client relationships
Local decision-making and market knowledge

Channels

Direct sales by commercial relationship managers
Branch network for deposit gathering
Digital banking portal for existing clients

Customer Segments

Middle-market companies ($10M-$250M revenue)
Small businesses seeking SBA loans
Commercial real estate investors

Costs

Interest expense on deposits and borrowings
Salaries and employee benefits
Technology, occupancy, and marketing expenses

Byline Bancorp Product Market Fit Analysis

Updated: October 4, 2025

Byline Bank empowers Chicago's businesses by combining the capabilities of a large financial institution with the dedicated partnership of a community bank. It delivers specialized expertise, particularly in complex SBA lending, to provide the capital and strategic advice businesses need to accelerate their growth and strengthen the local economy. It's banking built for business, by bankers who know Chicago.

ACCELERATED GROWTH: We provide the capital and expertise you need to scale.

RELATIONSHIP FOCUS: You get a dedicated partner invested in your success.

SPECIALIZED EXPERTISE: We simplify complex lending like SBA loans.

Before State

Struggling to get loans from big banks
Lacking a personal banking relationship
Navigating complex SBA loan processes alone

After State

Secured capital to expand operations
Partnered with a responsive banker
Efficiently navigated SBA lending process

Negative Impacts

Stalled business growth due to no capital
Feeling like just another account number
Missed opportunities from SBA loan errors

Positive Outcomes

Increased revenue and local job creation
Strategic advice for financial decisions
Faster access to government-backed funds

Key Metrics

Customer Retention Rates - 94% for commercial deposit accounts

Net Promoter Score (NPS) - Estimated 45-50 in commercial banking

User Growth Rate - 6% Y/Y growth in commercial loan portfolio

Customer Feedback/Reviews - Limited public reviews; relationship-based

Repeat Purchase Rates) - High; clients expand with more services

Requirements

A trusted local banking partner is needed
Expertise in commercial & SBA lending
Responsive service and quick decisions

Why Byline Bancorp

Dedicated relationship managers for clients
Top-ranked national SBA lending platform
Local decision-making for faster approvals

Byline Bancorp Competitive Advantage

Combines big bank capability, small bank feel
Decades of specialized SBA lending experience
Deep-rooted connections in Chicago business

Proof Points

Top 10 SBA 7(a) lender in the nation by volume
Helped thousands of Chicago businesses grow
Consistently high commercial client retention

Byline Bancorp Market Positioning

AI-Powered Insights

Claude

Gemini

GPT

Byline Bancorp Q4 2024 Earnings Release and Investor Presentation
Byline Bancorp 2024 Form 10-K Filing
Company Website (bylinebank.com)
SBA National 7(a) Lender Rankings Report
Financial data from Yahoo Finance (Stock Symbol: BY)

Strategic pillars derived from our vision-focused SWOT analysis

Chicago metro middle-market & small business banking

Disciplined M&A to enter adjacent Midwest markets

Modernize client-facing tech; not a tech company

Deepen expertise in government-guaranteed lending

What You Do

Provide commercial banking and lending to Chicago-area businesses.

Target Market

Small and middle-market enterprises in the Chicago metro area.

Differentiation

Deep local market knowledge and relationships.
National leadership in government-guaranteed lending (SBA).

Revenue Streams

Net interest income from loans and securities.
Noninterest income from service fees and loan sales.

Byline Bancorp Operations and Technology

AI-Powered Insights

Claude

Gemini

GPT

Byline Bancorp Q4 2024 Earnings Release and Investor Presentation
Byline Bancorp 2024 Form 10-K Filing
Company Website (bylinebank.com)
SBA National 7(a) Lender Rankings Report
Financial data from Yahoo Finance (Stock Symbol: BY)

Company Operations

Organizational Structure: Bank holding company with a primary banking subsidiary, Byline Bank.
Supply Chain: Capital from deposits, FHLB; services via Fiserv, Q2 Holdings.
Tech Patents: N/A; relies on vendor technology like Fiserv and nCino.
Website: https://www.bylinebank.com/

Top Clients

Board Members

Byline Bancorp Competitive Forces

Threat of New Entry

LOW: High regulatory hurdles, capital requirements, and the need for brand trust make de novo bank entry difficult and rare.

Supplier Power

MEDIUM: Power of depositors (suppliers of capital) to demand higher rates is significant, but fragmented. Core relationship deposits are sticky.

Buyer Power

HIGH: Commercial clients have many banking choices and can shop for the best rates and terms, especially larger, more sophisticated borrowers.

Threat of Substitution

MEDIUM: Fintech lenders (e.g., OnDeck) and private credit funds offer alternative financing, but lack the full relationship banking model.

Competitive Rivalry

HIGH: Intense rivalry from money-center banks (Chase), super-regionals (Wintrust), and numerous community banks for loans and deposits.

Analysis of AI Strategy

Updated: October 4, 2025 • 2025-Q4 Analysis

The Byline Bancorp AI SWOT Analysis highlights a significant opportunity constrained by internal capabilities. Byline's core strength is its proprietary lending data—a rich, untapped resource for training targeted AI models in its niche markets. However, a talent gap and legacy systems are major hurdles. The strategy must be pragmatic and partnership-driven. Instead of attempting to build a sprawling AI division, Byline should focus on targeted, high-ROI applications. The priorities are clear: leverage AI to enhance its core competency of underwriting through automation and predictive risk modeling, and to empower its relationship managers with data-driven sales insights. By partnering with specialized fintechs, Byline can graft AI capabilities onto its existing strengths, driving efficiency and defending its turf without the massive capital outlay of its larger competitors.

Wintrust Financial Old National Bancorp First Midwest Bank (Old National) JPMorgan Chase Bank of America

No past cycles

Mission & Vision SWOT Analysis OKR Plan Retrospective AI Strategy Data Acquisition

To be the bank Chicago's businesses deserve by becoming the premier relationship-based commercial bank in the Midwest.

Strengths

DATA: Rich, proprietary dataset from decades of small business lending
UNDERWRITING: Strong human-led credit analysis culture to train models on
NICHE: Unique data from government-guaranteed loans for specific models
CLIENTS: Trusted relationships allow for pilot testing AI tools
FOCUS: Commercial focus avoids complex consumer AI privacy issues

Weaknesses

TALENT: Lack of in-house AI/ML engineering and data science expertise
SYSTEMS: Legacy core banking platform hinders real-time data integration
BUDGET: Limited R&D budget for AI compared to large national banks
DATA: Siloed data across different legacy systems and departments
CULTURE: Risk-averse banking culture may slow adoption of AI tools

Opportunities

AUTOMATION: Use AI to automate initial underwriting & document analysis
RISK: Develop AI models for early-warning credit risk detection
SALES: AI-powered CRM to identify client cross-sell opportunities
SERVICE: Implement chatbots for routine commercial client inquiries
FRAUD: Deploy advanced AI algorithms for real-time fraud detection

Threats

FINTECH: Competitors using AI for faster, automated loan decisions
BIAS: Risk of AI models showing bias, leading to regulatory penalties
SECURITY: AI systems represent new, high-value targets for cyberattacks
COST: High cost of implementation and reliance on third-party AI vendors
OBSOLESCENCE: Falling behind competitors in AI dooms long-term efficiency

Key Priorities

AUTOMATE: Implement AI for automating commercial loan document processing
PARTNER: Select a fintech partner to build a predictive credit risk model
PERSONALIZE: Use AI in CRM to prompt bankers with cross-sell insights
EFFICIENCY: Deploy AI tools to reduce manual back-office tasks by 20%

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Byline Bancorp Financial Performance

AI-Powered Insights

Claude

Gemini

GPT

Byline Bancorp Q4 2024 Earnings Release and Investor Presentation
Byline Bancorp 2024 Form 10-K Filing
Company Website (bylinebank.com)
SBA National 7(a) Lender Rankings Report
Financial data from Yahoo Finance (Stock Symbol: BY)

Profit: $125.8 million (TTM)

Market Cap: $1.1 Billion

Stock Performance

Annual Report: Available on Byline Bancorp Investor Relations website.

Debt: $540 million in FHLB advances & other borrowings.

ROI Impact: ROAA at 1.45%, ROATCE at 15.8% shows efficient capital use.

SWOT Index

Composite strategic assessment with 10-year outlook

/ 100

Market Leader

ICM Index

STRATEGIC ADVISOR ASSESSMENT

Byline is a strong regional performer, not a paradigm-shifter. Its ambition is confined to category leadership. Achievability is solid but capped by competitive intensity. The OKRs are practical, not world-shaping. Its growth is tied to disciplined, incremental M&A and organic execution in a mature industry, limiting its exponential growth potential. The Iconic Index reflects a well-run, valuable company that excels in its niche but is unlikely to generate venture-scale returns.

SWOT Factors

Upside: 69.3 Risk: 68.0

OKR Impact

AI Leverage

Top 3 Strategic Levers

Aggressively pursue accretive M&A in adjacent states

Deepen SBA lending dominance through tech and talent

Modernize digital client experience to defend core base

AI Disclosure

This report was created using the Alignment Method—our proprietary process for guiding AI to reveal how it interprets your business and industry. These insights are for informational purposes only and do not constitute financial, legal, tax, or investment advice.

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