Byline Bancorp Limits Assets to Keep Fee Exemptions
The bank is capping growth through 2026 to remain below the $10 billion threshold for federal debit-card fee regulations.
Updated on Oct. 24, 2026 in Financial Services
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Chicago-based Byline Bancorp reported total assets of $9.89878 billion as of September 30, 2026, as the firm manages growth to stay under a regulatory threshold. The bank intends to keep assets below $10 billion through the end of 2026, preserving an exemption from federal debit-card interchange standards.
Why it matters
Operating below the $10 billion asset mark allows banks to avoid caps on debit-card interchange fees mandated by the Durbin Amendment. Byline Bancorp is actively limiting bond purchases to maintain this status until it plans to exceed the limit in 2027.
Byline Bancorp reported $103.676 million in third-quarter net interest income with a 4.33% margin. The bank projects fourth-quarter 2026 net interest income between $103 million and $105 million while keeping assets below the $10 billion exemption threshold.
The players
Byline Bancorp
A Chicago-based financial institution providing banking services to small-to-medium businesses and individuals.
The details
To remain under the $10 billion asset cap, Byline Bancorp is intentionally slowing growth by limiting bond purchases. The $10 billion ceiling is calculated based on year-end asset levels and triggers federal debit-card interchange fee restrictions once surpassed. The bank expects its upcoming acquisition of Illinois State Bancorp to push total assets to $10.5 billion, with the associated impact from the Durbin Amendment anticipated in the second half of 2028.
Timeline
June 30, 2026: Byline Bancorp assets were $33.7 million higher than they were on September 30.
September 30, 2026: The bank reported $9.89878 billion in total assets.
October 23, 2026: The CFO announced the Q4 income forecast and asset management plan.
Q4 2026: Expected net interest income is between $103 million and $105 million.
2027: The bank expects to exceed $10 billion in assets.
Market Landscape
Financial institutions frequently manage their growth to delay the compliance burdens associated with the Durbin Amendment. Byline Bancorp's strategy mirrors standard industry practices for navigating the $10 billion asset threshold before scaling through acquisitions.
Business owners should monitor if their current banking partners are approaching the $10 billion asset threshold, as this shift often influences fee structures and service availability. Financial managers should track bank growth disclosures to anticipate potential adjustments to interchange costs.
The takeaway
Banks nearing $10 billion in assets frequently adjust balance sheet strategies to delay the impact of federal interchange caps. Operators should review their bank's regulatory filings to see if they are nearing this threshold, as shifts in asset size can influence future cost structures.
What happens next
Byline Bancorp plans to close its acquisition of Illinois State Bancorp during the first three months of 2027.
Further reading
For broader trends in regional banking, visit Financial Services.
Source note: This article includes information reported by TokenPost.
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