Chicago’s Byline Bancorp to expand suburban presence with $165M buy

Chicago-based Byline Bancorp, Inc., is acquiring Oak Brook, Ill.-based Inland Bank and Trust in a $165 million, cash-and-stock deal.

The transaction, expected to close in the second quarter of next year, will expand Byline’s suburban Chicago footprint to 47 branches. By acquiring the $1.2 billion Inland Bank, Byline will grow to include $8.5 billion in assets, $6.2 billion in loans and $6.6 billion in deposits.

Byline Bancorp Executive Chair and CEO Roberto Herencia called Inland “a well-established and trusted financial institution with deep client and community relationships, which we look forward to continuing.”  

Under the terms of the agreement, Byline Bancorp will issue approximately 6.4 million shares of common stock and nearly $23 million in cash to Inland Bancorp stockholders. The transaction is expected to be 8.1 percent accretive to Byline’s 2023 earnings per share and 10.7 percent in 2024, with an expected tangible book value per share dilution earn-back period of approximately 2.7 years.  

“Our M&A strategy has always been about finding the right partners in complementary markets that share our core values and approach to the business,” said Byline Bancorp President Alberto Paracchini. “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.” 

Inland Bank and Trust President and CEO Peter Stickler said the merger allows his bank “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.” 

Stephens, Inc., Little Rock, Ark., served as financial adviser to Byline. Vedder Price P.C., Chicago, served as Byline’s legal adviser. For Inland, Piper Sandler & Co., Minneapolis, served as financial adviser and Barack Ferrazzano Kirschbaum & Nagelberg LLP, Chicago, served as legal adviser.