Byline Bancorp Inc

Byline Bancorp guided third-quarter net interest income to a range of $100 million to $102 million, reflecting a higher-for-longer rate outlook. Executive VP and CFO Thomas J. Bell provided the guidance during the company's second-quarter earnings call, where management also reported record net income of $40.2 million, or $0.90 per diluted share, on revenue of $118 million. Noninterest income for the third quarter is expected to be $14 million to $15 million, while full-year noninterest expense guidance was reiterated at $59 million to $60 million per quarter. The bank maintained its full-year loan growth framework of mid-single digits, with payoff timing cited as the main uncertainty, and announced a 16.7% increase in its quarterly dividend to $0.14 per share alongside ongoing share repurchases.

Shares of several regional banks surged in afternoon trading after softer-than-expected inflation data cooled expectations for further Federal Reserve interest rate hikes. Community Bank rose 2.7%, Coastal Financial jumped 4.4%, Byline Bancorp gained 3.3%, Bank of Hawaii added 3.3%, and BancFirst climbed 2.8%. The rally was fueled by a June CPI reading of 3.5% and lower-than-expected producer prices, which bolstered investor confidence that inflationary pressures may be easing. A more stable rate environment is seen as favorable for regional banks, potentially alleviating funding pressures and supporting lending, while strong second-quarter earnings from major financial institutions offered a bullish read-through for smaller lenders. The State Street S&P Regional Banking ETF has been trading near its 2026 highs as the sector navigates a busy earnings season.