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Date

April 24, 2026 at 10 a.m. ET

Call participants

  • Chairman and Chief Executive Officer — Roberto R. Herencia
  • President — Alberto J. Paracchini
  • Chief Financial Officer — Thomas J. Bell
  • Chief Credit Officer — Mark Fucinato
  • Head of Investor Relations — Brooks Rennie

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Takeaways

  • Net income -- $37.6 million with earnings per diluted share of $0.83, representing eight percent and 9.2% growth, respectively.
  • Profitability -- Return on average assets at 1.56% and return on tangible common equity at 13.77%.
  • Pretax, pre-provision income -- $55.2 million, delivering a margin of 2.29%, and exceeding two percent for fourteen consecutive quarters.
  • Total revenues -- $112.4 million, with net interest income at $99.9 million, down one percent sequentially, and noninterest income at $12.5 million, down approximately $3.2 million linked quarter.
  • Net interest margin -- Stable at 4.33%, declining two basis points quarter over quarter but expanding 26 basis points year over year.
  • Deposit growth -- Total deposits rose 8.2% annualized to $7.8 billion, led by interest-bearing checking and time deposits.
  • Loan balances -- Total loans at $7.5 billion, modestly lower from the previous quarter due to $72 million in runoff and payoffs of $320 million, offset by $241 million in new originations.
  • Expense control -- Noninterest expenses were $57 million, down 5.3% sequentially, improving the efficiency ratio to 49.8%.
  • Credit quality -- Nonperforming loans decreased $4 million to $67 million; criticized loans and the allowance for credit losses remained stable at 1.46% of total loans.
  • Capital strength -- Common equity tier one ratio of 12.5% and total capital ratio at 15.5%; tangible book value per share increased to $23.79, up one percent quarter over quarter and 14% year over year.
  • Shareholder returns -- 40% of net income returned through 318,000 share repurchases at an average of $30.84 and a quarterly dividend of $0.12 per share.
  • Guidance -- Net interest income outlook for next quarter set between $99 million and $101 million; noninterest income expected at $14 million to $15 million, and noninterest expense guided in the $58 million to $60 million range.
  • SBA lending -- Maintained the number one SBA 7(a) lender ranking in Illinois for the sixteenth consecutive year.
  • Securities portfolio -- Increased average balances in the quarter; further additions are expected to be limited and based on market opportunities.
  • Deposit costs -- Average cost held at 1.91%, with sequential improvement of six basis points, supported by lower money market rates and mix benefits.
  • Loan production and pipeline -- New loan originations at coupons of 6.75%-6.80%, with payoffs at 4.50% coupons; pipeline remains diversified, with commercial banking and leasing activity termed "solid" by management.
  • M&A environment -- Management described deal conversations as "pretty healthy," but noted some seller hesitancy due to macro and geopolitical factors.
  • Durbin Amendment impact -- Management reiterated an anticipated $3.5 million to $4 million annualized reduction in revenue beginning July 1, 2027, equating to roughly four basis points to ROA.

Summary

Byline Bancorp (BY +0.35%) presented results featuring strong deposit growth, disciplined expense management, and stability in both credit quality and capital ratios. The quarter included evidence of ongoing strength in SBA lending, as the company retained its leadership in Illinois for SBA 7(a) originations. Management forecast next quarter’s net interest income within a narrow $2 million range and affirmed expectations for both stable noninterest expense and growing noninterest income, citing anticipated improvements in fee and swap income. Loan originations continued at higher coupon rates, and management emphasized the potential for diversified growth, particularly if rates moderate in the real estate segment. Strategic priorities include deliberate balance sheet expansion beyond $10 billion and further capital returns through share repurchases and dividends.

  • The company’s efficiency ratio reached one of its lowest levels since becoming public, indicating significant progress in operational cost control.
  • Management distinguished planned runoff of loan participations and acquired portfolio books from core loan growth, clarifying that underlying origination activity would have produced approximately four percent loan growth if not for scheduled runoff.
  • Executives highlighted durable shareholder returns as a result of returning 40% of net income via dividends and buybacks, while maintaining capital ratios materially above regulatory requirements.
  • Average deposit costs are expected to remain stable to slightly lower, as nearly all repricing is complete and further gains would depend on favorable mix shifts rather than rate declines.
  • Management described the impact of the impending Durbin Amendment as relatively modest, estimating an annualized effect of $3.5 million to $4 million, beginning in the second half of 2027.
  • Leadership noted employee well-being and workplace recognition as contributing to talent retention and operational stability, with recent external awards supporting this assessment.

Industry glossary

  • SBA 7(a) loan: A loan program backed by the U.S. Small Business Administration, used by banks to finance small business borrowers with partial government guarantees.
  • Durbin Amendment: U.S. federal regulation limiting debit interchange fees for large banks, potentially impacting fee income above $10 billion in assets.
  • Loan participation: A shared funding arrangement in which multiple lenders jointly own portions of the same loan, commonly used to diversify risk and manage portfolio concentrations.
  • NPAs: Nonperforming assets, including loans and real estate owned that are no longer accruing interest, used to assess asset quality.
  • ACL: Allowance for credit losses, representing reserves set aside to cover estimated losses in the loan portfolio.
  • CET1: Common equity tier one capital ratio, a key regulatory metric indicating a bank's core capital strength as a percentage of risk-weighted assets.

Full Conference Call Transcript

Brooks Rennie: Good morning, everyone, and thank you for joining us today for the Byline Bancorp, Inc. first quarter 2026 earnings call. In accordance with Regulation FD, this call is being recorded and is available via webcast on our Investor Relations website along with our earnings release and the corresponding presentation slides. As part of today's call, management may make certain statements that constitute projections, beliefs, or other forward-looking statements regarding future events and the future financial performance of the company. We caution that such statements are subject to certain risks, uncertainties, and other factors that could cause actual results to differ materially from those discussed. The company's risk factors are disclosed and discussed in its SEC filings.

In addition, our remarks and slides may reference and contain certain non-GAAP financial measures, which are intended to supplement but not substitute for the most directly comparable GAAP measures. Reconciliations of each non-GAAP financial measure to the comparable GAAP financial measure can be found within the appendix of the earnings release. For additional information about risks and uncertainties, please see the forward-looking statement and non-GAAP financial measure disclosures in the earnings release. As a reminder for investors, during the quarter, we plan to participate in two upcoming conferences here in Chicago: the Stephens Chicago Bank Tour on May 14, and the Raymond James Chicago Bank Symposium on May 28.

With that, I will now turn the call over to Alberto Paracchini, President of Byline Bancorp, Inc.

Alberto Paracchini: Great. Thank you, Brooks. Good morning, and welcome to Byline Bancorp, Inc. first quarter earnings call. We appreciate all of you taking the time to join the call this morning. With me today are Chairman and CEO, Roberto Herencia; our CFO, Thomas J. Bell; and our Chief Credit Officer, Mark Fucinato. Before we get started, I would like to pass the call over to Roberto for his comments. Roberto?

Roberto Herencia: Thank you, Alberto, and good morning to all. As Alberto said, we do appreciate you joining us today and taking the time to engage with Byline Bancorp, Inc. Markets in general continue to offer plenty of distractions and, at times, entertainment: shifting interest rate expectations, inconsistent economic signals, policy uncertainty, and heightened geopolitical tensions, with the Iran war at the center of it and its broader implications. These add another layer of complexity for businesses and investors alike. We have learned over time that durable results do not come from reacting to every headline. They come from being anchored to purpose, disciplined execution, and long-term thinking.

So we remain focused on driving value for our stockholders as we work—and make progress, I may add—toward becoming the preeminent commercial bank in Chicago. We started the year with another strong quarter. ROA, PTPP, NIM, and efficiency remain among the best in class. Tangible book value growth of 14% year over year is also knocking on the door of best in class. Our balance sheet remains strong and positioned to support customers through the cycle. I want to recognize what matters deeply to us: our people. Byline Bancorp, Inc. was recently honored as a U.S. best-in-class employer in Gallagher’s 2025 U.S. Benefits Strategy and Benchmarking Survey.

We were also named to Newsweek’s America’s Greatest Midsize Workplaces for Women, highlighting our dedication to practices grounded in transparency, professional development, and flexibility—empowering women to build careers that grow with their lives. These awards reflect effective people strategies with measurable outcomes, including employee well-being and engagement. They reinforce our people-first approach and strengthen our ability to attract, retain, and develop top talent in a very competitive environment. I would like to point out that our SBA platform continues to perform well. For the sixteenth consecutive year, our team ranked as the number one SBA 7(a) lender in Illinois, according to the most recently published fiscal-year rankings. This kind of consistency does not happen by accident.

It reflects decades of experience, disciplined execution, and the dedication of an outstanding team. I would also like to recognize two individuals who have been familiar voices to many of us for a long time. This marks the end of an era as Terence McEvoy of Stephens, and David Long of Raymond James, step into new chapters in their careers. Collectively, as sell-side analysts, they have covered more than 200 earning seasons, and more importantly, they brought professionalism, consistency, and thoughtful engagement to their work. We are grateful for the time they spent covering Byline Bancorp, Inc., and for the relationships built over many years.

On behalf of the board and the entire management team, we wish both Terry and David continued success in their new roles. To close, I remain very optimistic about Byline Bancorp, Inc. We are operating with clarity of purpose, supported by strong fundamentals, an engaged workforce, and a resilient business model. We are very focused on compounding returns the right way through prudent growth, disciplined risk management, and an unwavering commitment to our people and customers. With that, Alberto, back to you.

Alberto Paracchini: Great. Thank you, Roberto. As is our normal practice, I will start with the highlights for the quarter, followed by Tom, who will take you through the financials, and then I will come back to wrap up before we open the call up for questions. As always, you can find the deck we are using this morning on the IR section of our website, and please refer to the disclaimer at the front. Turning to slide four on the deck, overall, I am pleased to report that we had a solid start to the year and delivered another excellent quarter.

Earnings momentum continued along with strong profitability, disciplined expense management, and stable credit quality, despite an evolving macro and geopolitical backdrop. For the quarter, we reported net income of $37.6 million and EPS of $0.83 per diluted share, representing growth of 8% and 9.2%, respectively. Profitability was strong with ROA of 156 basis points and ROTCE of 13.77%. Pretax preparation income totaled $55.2 million, resulting in a pretax preparation margin of 229 basis points, which marks the fourteenth consecutive quarter in which this metric exceeded 2%, reflecting the durability and consistency of our operating results. Total revenues were $112.4 million for the quarter.

Net interest income remained solid at just under $100 million, while noninterest income was lower at $12.5 million, largely due to lower fair value marks for the quarter. The margin remained stable at 4.33%, notwithstanding a lower day count and lower yields. This was offset by a drop in deposit costs driven by a better mix, coupled with pricing discipline, which Tom will cover in more detail shortly. From a balance sheet standpoint, total deposits increased 8.2% annualized to $7.8 billion, reflecting growth across both core as well as time deposits. Loan balances were modestly lower linked quarter as payoffs more than offset solid origination activity of $241 million.

Expenses remained well managed at $57 million, down 5.3% from the prior quarter, with our efficiency ratio improving to 49.8% for the first quarter—one of the lowest levels we have reported since becoming a public company. Asset quality remained stable. Credit costs were $5.5 million for the quarter and consisted of $6 million in net charge-offs and a small reserve release of $0.5 million. Both NPLs and criticized loans showed declines and the ACL increased one basis point to 1.46% of total loans. Moving on to capital, our capital levels continue to grow and balance sheet strength is evident with TCE at 11.1% and CET1 over 12.5%.

We exercised some of that capital flexibility this quarter and returned 40% of net income back to shareholders by repurchasing approximately 318 thousand shares of stock at an average price of $30.84, in addition to our quarterly dividend of $0.12 per share. With that, I will turn the call over to Tom, who will walk you through our results.

Thomas J. Bell: Thank you, Alberto, and good morning, everyone. Starting with our loans on slide five, total loans stood at $7.5 billion, down slightly from the prior quarter. The decline in balances was primarily driven by $72 million in runoff related to loan participations and acquired loans. Origination activity was solid with $241 million in new loans, while payoffs remained elevated at $320 million. Loan commitments increased and line utilization declined slightly to 59.2%. Loan yields came in at 6.84%, down 11 basis points linked quarter as a result of the December Fed rate cut. Pipelines remain strong, and we expect full-year loan growth in the mid-single digits.

Turning to slide six, total deposits were $7.8 billion for the quarter, up $154 million, or 8.2% annualized, from the prior quarter. The growth was due to increases in interest-bearing checking and time deposits. We saw a six basis point improvement in deposit cost driven by lower money market rates, which brought overall deposit costs down to 1.91%. Turning to slide seven, net interest income was $99.9 million in Q1, down 1% from the prior quarter and up 13% year over year. Net interest income was impacted by two fewer days in the quarter, lower yields on earning assets, and higher borrowing costs as a result of a balance sheet hedge that matured in March.

This was partially offset by lower rates paid on deposits. The net interest margin was stable at 4.33%, declining modestly by two basis points from the last quarter, with 50% of the decline coming from lower accretion, while expanding 26 basis points year over year. Our outlook for net interest income is based on the forward curve, which currently assumes no rate cuts or hikes in 2026. Given the rate outlook and our balance sheet position, this implies a net interest income range of $99 million to $101 million in the second quarter. We expect net interest income to grow, driven by overall balance sheet growth and disciplined deposit pricing in the event short-term rates move lower.

Turning to slide eight, noninterest income totaled $12.5 million in Q1, which was down approximately $3.2 million linked quarter. The decline on a quarter-over-quarter basis was driven by an additional negative fair value mark on loan servicing assets of $755 thousand and a $1.3 million decline in fair value of equity securities. Excluding these fair value adjustments, fee income remained stable. We expect gain on sale to average $5.5 million per quarter and our noninterest income to be in the $14 million to $15 million range for the second quarter. Turning to slide nine, expenses came in at $57 million, down 5.3% from the prior quarter.

This was driven by lower salaries and benefits from lower incentives, legal costs, and advertising spend, partially offset by higher data processing expenses. Our efficiency ratio improved 54 basis points to 49.78%, with the noninterest expense-to-average assets ratio at 2.37%, down 10 basis points. Looking forward, our noninterest expense full-year guidance remains unchanged at $58 million to $60 million per quarter. Turning to slide 10, credit costs declined for the quarter with the provision coming in at $5.5 million. NPLs decreased $4 million, or 5.6% linked quarter, to $67 million, while NPAs to total assets improved to 71 basis points from 77 basis points in Q4. The improvement was driven by resolution activity during the quarter.

The ACL remained flat at 1.46% of total loans. Moving on to capital on slide 11, capital levels continue to grow and remain robust with CET1 at 12.5%, up 22 basis points linked quarter and up 77 basis points year over year. Total capital came in at 15.5%, up 69 basis points year over year. In addition, tangible book value per share grew to $23.79, increasing 1% on a linked-quarter basis and 14% year over year. And last month, Kroll Bond Rating Agency affirmed our BBB+ credit rating and outlook. In closing, another great quarter across the board and a solid start to the year. With that, over back to you.

Alberto Paracchini: Thank you, Tom. To wrap up, we were pleased with our results and performance for the quarter. Notwithstanding the level of uncertainty in the environment, we are optimistic in our ability to execute our strategy, continue to grow the business, and deliver value to shareholders. In terms of the outlook, pipelines remain at solid levels across our business and we remain well positioned to take advantage of opportunities in the marketplace. We will now open the call for questions.

Operator: At this time, if you would like to ask a question, press star 1. To withdraw your question, simply press star 1 again. Your first question comes from the line of Nathan Race with Piper Sandler. Please go ahead.

Nathan Race: Hey, guys. Good morning. Hope you are all doing well. Alberto, I was hoping you could shed some more color on the production levels in the quarter in terms of how much of the year-over-year decline may have been due to some of the macro factors at play these days versus seasonality? I know you have mentioned the pipeline is solid going into the rest of the year, but was just hoping you could shed some light on that. And in terms of payoffs as well?

Alberto Paracchini: Of course. On your second point, we had pretty good origination levels, so the level of business activity was pretty good in commercial banking and our leasing business. Real estate was nothing unexpected on that end. A lot of the payoff activity—or a portion of the payoff activity—that we saw this quarter was simply us recycling loan participations and loans that we had acquired coming from some acquisitions. That is really what drove it. If you actually strip out the impact of those—which is perfectly aligned with what we want to do ultimately with those books—if you strip that out, I think loan growth would have been somewhere in the 4% level for the quarter.

So nothing unusual other than planned runoff coming from books that we have acquired over the years.

Nathan Race: Got it. That is really helpful. Maybe a question for Tom. I know you do not give margin guidance specifically, but just trying to understand the trajectory of loan yields over the balance of this year in the context of what the roll-off yield looks like and what you are seeing in terms of blended rates on loan production these days?

Thomas J. Bell: Hi, Nate. Roll-offs are, call it, $300 million-ish at like a 4.50% kind of coupon. New production is typically around 6.75% to 6.80% coupons.

Nathan Race: Okay. So I imagine, again without giving guidance, that you are thinking the margin could hold there, given maybe more rational deposit pricing competition these days and given what you described in terms of the roll-off?

Thomas J. Bell: Certainly on the loan side, spreads are maintaining well. As you will see in the balance sheet, we grew the securities portfolio this year. That is a tighter spread transaction, so when you start to include that in, you could have a small tweak to the margin overall. But, again, NII guidance is growing over the year here.

Nathan Race: Gotcha. And maybe one last one. Alberto or Roberto, just curious what you are seeing in terms of M&A conversations and activity levels these days. Obviously, you have a little bit of a headwind to earnings next year with the Durbin impact, which I know is not particularly big for you guys. But just curious if you are feeling more optimistic on an M&A announcement over the balance of this year.

Alberto Paracchini: We are always optimistic in terms of the level of conversations. I would tell you right now—and I do not think this is inconsistent with what others have said in their earnings calls—certainly uncertainty in the environment, given the macro and geopolitical issues, is maybe causing some sellers to pause. That being said, I think the underlying level of conversations continues to be, from my view, pretty healthy.

Nathan Race: Okay. Great. I appreciate all the color. Hope you guys have a good weekend.

Alberto Paracchini: Likewise. Thank you.

Operator: Your next question comes from the line of Brendan Nosal with Hovde Group. Please go ahead.

Brendan Nosal: Hey. Good morning, everybody. Hope you are doing well. Maybe starting off here on capital. I think, if my math is correct, you have nearly tapped out the current buyback plan. Is there a willingness to re-up that and remain in the market, just given how much capital you have today and how much you will continue to generate?

Thomas J. Bell: Brendan, we have only done about 300,000 shares, so we have a $2.02 over $2 billion program. So we have plenty of room to continue to repurchase shares.

Brendan Nosal: Great. Apologies for that after a long earnings week. Maybe pivoting to funding here. Really nice quarter for deposit growth, both overall and core funding. Just curious why you opted to grow CDs as much as you did, given the lack of loan growth, and then tie that into the competitive landscape in Chicago for core funding?

Thomas J. Bell: We are first focused on full relationship customers, but our CD book has grown over the years, and we are still trying to maintain a certain level of CDs. Loan-to-deposit ratio was higher at the end of the year because of, as an example, maybe some more institutional deposits. But generally speaking, we think we have a good deposit base. The CD book is good. The back-up book is performing well. As you can see, the CD yields are coming down quarter over quarter, but given the Fed on hold, that is probably going to slow down here.

We still need to fund the bank, and we like the diversification that we get from it, with the opportunity to potentially cross-sell those CD customers other products.

Brendan Nosal: Okay. Thanks, Tom. Appreciate you taking the questions.

Operator: Your next question comes from the line of Damon DelMonte with KBW. Please go ahead.

Damon DelMonte: Hey. Good morning, guys. Hope you are all doing well, and thanks for taking my questions. First one, regarding loan growth and the pipeline that you referenced, could you give a little color on what that is comprised of and which segments are building that pipeline for you?

Alberto Paracchini: So all segments, Damon, but I would say, like we have touched on in prior calls, probably the one that is more rate sensitive is going to be real estate. Rates have backed up—and I am not talking about short-term rates—but the back-up in the five-year, the back-up in the ten-year; real estate is much more sensitive to those. So I suspect if we see a decline in that later on in the year, potentially that is going to positively impact volumes still within the range that we provide, which is that mid-single-digit target. That is the one that I would say has the highest chance of having some volatility around rates.

As far as the other categories, which are really just commercial banking and our leasing business in general, pipelines are solid. We really have not seen an impact where people are saying, given the uncertainty in the environment, we are going to take a breather here and postpone something that we were planning to do for a few months just to see how the environment settles down. Activity has been good. To give you some color, companies are actively being marketed and sold in our sponsor business, as well as we are hearing some of that also in our commercial banking book, which is a positive sign from a transaction activity standpoint. Borrower activity continues to be good.

Demand for credit remains solid in those segments.

Damon DelMonte: That is great color. Thank you. Tom, you mentioned the securities portfolio increasing in size, and we can see the average balances were up quarter over quarter. How do we think about that for the remainder of the year? Do you expect to add to that, or might that start to trail down a little bit?

Thomas J. Bell: I think stable, Damon. We will probably reinvest cash flows. We could go up a little bit, depending on market opportunities. But assuming loan growth will deliver, which we expect, there is probably no need to grow the portfolio meaningfully.

Alberto Paracchini: I think big picture, Damon, the way we think about securities—at least from a big picture standpoint—we are always going to be trying to grow deposits. Irrespective of what the environment is, we are always going to be looking to try to grow deposits over time through the cycle. We just do not think we are good enough to be able to, as some of our colleagues in the industry say, turn a spigot on, turn a spigot off. So we are constantly trying to grow the faucet. To the degree that the faucets start outpacing our ability to grow loans, then by definition you would see that growth probably end up in the securities portfolio.

So just big picture, that is how we think about it.

Damon DelMonte: Great. That makes sense. Thank you very much. That is all that I had.

Operator: Your next question comes from the line of Brandon Rudd with Stephens Inc. Please go ahead.

Brandon Rudd: Morning, and thanks for taking my questions.

Thomas J. Bell: Morning. Hey, Brandon.

Brandon Rudd: If I could follow up on an earlier question about the deposit costs. Can you talk about their trajectory through the quarter relative to the 1.91% reported, and when you think about a starting point as we enter the second quarter, would you anticipate that number trending down a few more basis points?

Thomas J. Bell: Pretty consistent. The average over the quarter versus period end was pretty much unchanged. March was exactly on top of where the cost of funds was for the quarter, so not a meaningful change. The CD book is very short—four months, five months at length—so a lot of opportunity to reprice, but most of the book has repriced given that the Fed made its last cut, so to speak, in December.

Brandon Rudd: Okay. Thank you. And maybe just a higher-level question. I think back in January, the plan was to not manage below $10 billion this year. Is that still the plan, and can you remind me what the Durbin impact would be in, I guess, 2027?

Alberto Paracchini: Sure. Brandon, we are not trying to manage the balance sheet to artificially stay under $10 billion. It just so happens that we were at $9.9 billion at the end of this quarter, but it could very well have been that we would have been over $10 billion. So we are kind of there, and we expect to be crossing that barrier here at any point. As far as the Durbin impact for 2027—

Thomas J. Bell: As we have mentioned, we do not have the same kind of interchange costs some of the other banks do, and I think we quoted about four basis points to ROA as a decline, given that it takes effect again in 2027.

Alberto Paracchini: July 1. So it would be 07/01/2027. And I think we had said publicly $3.5 million to $4 million in terms of the Durbin impact, Brandon. Obviously, that is an annualized number. So in July 2027, all else being constant, we would see the impact of half of that in the second half of the year.

Brandon Rudd: Got it. Sounds good. Thank you very much for taking my questions, and have a nice weekend.

Alberto Paracchini: Super. Thank you.

Operator: Again, if you would like to ask a question, press star 1 on your telephone. Your next question comes from the line of Brian Martin with Janney Montgomery Scott. Please go ahead.

Brian Martin: Hey. Good morning, guys. Just wondering on the cost of deposits. Given the backdrop—like you said, the Fed has made their last rate cut—it is pretty stable from here. There is not much opportunity on the CD side, given the book is short. So would you think relatively stable, give or take, as you think about going forward? Just wondering how the competitive pressures are and if you are seeing the loan growth outlook look pretty bright, trying to understand the competition.

Thomas J. Bell: I would say relatively flat, maybe down a little bit. Mix helps us. We are always focused on relationship banking and commercial banking, so those are typically lower-cost deposits, and that will help us. On the competitive front, on the consumer side, it is the typical competition we see as far as rates. I do not think anything is crazy at this point, but we want to keep our market share in that category. I would say nothing is going higher at least at this point, and the book is almost fully repriced, so there is not a lot of lift for lower cost as we move forward, other than mix.

Brian Martin: Gotcha. Okay. That is helpful. And just the commercial payments business—your confidence in continuing to grow deposits—does that give you some tailwind there on that opportunity?

Thomas J. Bell: Yes. I think as the year goes on, we will see more benefit from that, and obviously the fee income that comes with it as well. It takes a while to onboard the customers, so we will start seeing that more here in the second half of the year.

Brian Martin: Gotcha. Okay. And then maybe the last one: some of the noise in the quarter in terms of fee income. Could you give some thoughts on a baseline or how to think about the jumping-off point going into 2Q?

Thomas J. Bell: We still gave guidance of $14 million to $15 million, Brian.

Brian Martin: Yes, I caught that. Sorry.

Thomas J. Bell: For the quarter, we had lower swap fee income from our back-to-back program, and we expect that to pick up here. And then we had a small lower valuation on the sale of some lease assets, which was a one-off. That is why we have given guidance to the $14 million to $15 million, but those are the two drivers other than the fair value adjustments.

Brian Martin: Okay. That is all I had, guys. I appreciate you taking the call, and congrats on the quarter.

Thomas J. Bell: Great. Thank you, Brian.

Operator: Thank you for your questions today. I will now turn the call back over to Mr. Alberto Paracchini for any closing remarks.

Alberto Paracchini: Great. Thank you, Tiffany. In closing, I would like to congratulate and thank all our employees on another solid quarter. Our level of performance would not be possible without their dedication, their effort, and their commitment to customers. We could not do it without them. To everyone on the call, thank you for joining today. We appreciate your continued interest in Byline Bancorp, Inc., and we look forward to talking to you again next quarter. Thank you.

Operator: Ladies and gentlemen, this concludes today's call. Thank you all for joining. You may now disconnect.