Byline Bancorp, the holding company for Byline Bank, has agreed to merge with Inland Bancorp and its subsidiary Inland Bank and Trust, in a cash and stock transaction valued at around $165m.
Under the terms of the agreement, Inland stockholders will receive around 6.4 million shares of Byline common stock, along with $22.9m in upfront cash.
The transaction is valued at around $165m or $4.90 per Inland Bancorp share, based on the closing price of Byline’s common stock on 29 November 2022.
The boards of directors of both companies have unanimously approved the merger.
It is expected to close during Q2 2023, subject to regulatory approvals, the approval of Inland Bancorp’s stockholders, and the satisfaction of certain other closing conditions.
The combined company will have around $8.5bn in assets, $6.2bn in loans and $6.6bn in deposits, with 47 branches across the greater Chicago metropolitan area.
Byline Bancorp president Alberto J Paracchini said: “Inland is a highly regarded community bank with whom we share a common philosophy – providing outstanding customer service and developing deep and long-lasting relationships with the customers and communities that we serve and where we live.”
Byline Bancorp executive chairman and chief executive officer Roberto Herencia said: “Joining forces with Inland Bancorp brings to all of our customers an expanded footprint across Chicago. We are very excited to welcome Inland Bancorp customers and colleagues to Byline.”
Inland Bancorp is the parent company of Inland Bank and Trust, a full-service community bank that offers commercial and retail banking services.
The bank offers commercial and retail banking services, with 10 branches primarily in the western and northern suburban regions of Chicago.
It has been serving communities for more than 40 years and had total assets of $1.2bn, total loans of $854m and total deposits of $1bn as of 30 September 2022.
Byline said that the transaction would strengthen its position as a large-scale community bank in Chicago with $10bn in assets, and expand its footprint into other suburban communities.
Stephens served as a financial advisor and Vedder Price as a legal advisor to Byline, while Piper Sandler & Co. served as a financial advisor and Barack Ferrazzano Kirschbaum & Nagelberg as a legal advisor to Inland.
Inland Bank and Trust president and chief executive officer Peter Stickler said: “By joining forces with Byline, we recognise the opportunity to align with a partner that shares our passion for providing high-quality customer service.
“The transaction will also increase our lending capacity by leveraging a larger balance sheet and access to a broader array of products and services, including leading-edge digital capabilities.
“We believe the opportunity to join the Byline team is very positive for all of our constituents and will provide greater benefits to our customers and the communities we serve.”
