Byline Bancorp in Chicago has agreed to buy Inland Bancorp in Oak Brook, Ill.
The $7.3 billion-asset Byline said in a press release that it will pay $165 million in cash and stock for the $1.2 billion-asset Inland. The deal, which is expected to close in the second quarter, valued Inland at 125% of its tangible book value.
Inland has 10 branches, $854 million of loans and $1 billion of deposits. The company plans to shut down its mortgage division before the deal closes.
Inland “is a well-established and trusted financial institution with deep client and community relationships, which we look forward to continuing,” Roberto Herencia, Byline’s executive chairman and CEO, said in the release. “Joining forces with Inland … brings to all of our customers an expanded footprint across Chicago.”
Byline plans to cut about 30% of Inland’s annual noninterest expenses. The company expects to incur $18.6 million of merger-related expenses.
Byline said the deal should be 8.1% accretive to its 2023 earnings per share and 10.7% accretive the following year. It should take less than three years for Byline to earn back any dilution to its tangible book value.
One Inland director will join Byline’s board.
Stephens and Vedder Price advised Byline. Piper Sandler and Barack Ferrazzano Kirschbaum & Nagelberg advised Inland.