Byline Bancorp in Chicago has agreed to buy First Security Bancorp in Elmwook Park, Ill.
The $9.6 billion-asset Byline said in a press release that it will pay $41 million in cash and stock for the $355 million-asset First Security. The deal, which is expected to close in the second quarter, priced First Security at 131% of its tangible book value.
First Security has one branch, $201 million of loans and $322 million of deposits.
First Security “is a highly respected financial institution that shares our core values of exceptional customer service and building lasting relationships within the communities we serve and call home,” Roberto Herencia, Byline’s executive chairman and CEO, said in the release.
“At Byline, our M&A strategy is centered on finding the right partners – those who align with our values and strengthen our presence in complementary markets,” Herencia added.
Byline expects mid-single-digit earnings per share accretion from the acquisition. It should take less than a year to earn back any dilution to the company’s tangible book value.
Byline expects to incur $7 million of merger-related expenses. It said it should have “significant cost savings.”
Stephens and Vedder Price advised Byline. D.A. Davidson and Barack Ferrazzano Kirschbaum & Nagelberg advised First Security.