Chicago’s Byline Bancorp has inked a deal to acquire Oak Park River Forest Bankshares, Inc., Oak Park, Ill., in a cash and stock transaction worth $42 million.
Oak Park River Forest, the parent company of Community Bank of Oak Park River Forest, has total assets of $325 million, total loans of $254 million and total deposits of $293 million as of June 30.
Founded in 1996, Community Bank has three offices in Oak Park and River Forest, Ill. As of June 30, Community Bank’s deposit base consisted of 93 percent core deposits, with a cost of deposits of 0.15 percent during the second quarter of 2018.
“We believe the combination of Byline and Oak Park River Forest will enhance the customer banking experience by offering greater convenience while still providing the same commitment to superior customer service,” said Alberto Paracchini, president and CEO of the $4.8 billion Byline. “This acquisition will provide us with a strong presence in Oak Park and River Forest, two Chicago metropolitan markets with communities that avidly support local business and community development.”
The deal will close in the first half of 2019. Byline expects the transaction to be approximately 5.5% accretive to earnings per share in 2020 (excluding one-time merger-related transaction expenses), with an expected tangible book value per share dilution earn-back period of approximately three years using the “cross-over” method.
Keefe, Bruyette & Woods, A Stifel Company served as financial advisor to Byline, and Sullivan & Cromwell LLP served as Byline’s legal advisor. Monroe Financial Partners, Inc. served as financial advisor to Oak Park River Forest, and Vedder Price P.C. served as Oak Park River Forest’s legal advisor.