Byline Bancorp in Chicago has agreed to buy First Evanston Bancorp in Illinois.
The $3.3 billion-asset Byline said in a press release Monday that it will pay $169 million in cash and stock for the $1.1 billion-asset First Evanston. The deal is expected to close in the first half of next year.
First Evanston is Byline’s first acquisition since its July 6 initial public offering. The deal will add 10 branches, $892 million in loans and $994 million in deposits.
The acquisition “is an exciting milestone,” Alberto Paracchini, Byline’s president and CEO, said in the release. “First Evanston adds significant strength, both in terms of clients and talent, to our commercial banking business, allows us to expand our footprint into attractive Chicagoland markets and further solidifies our strong core deposit base.”
Byline said it expects to cut about 29% of First Evanston’s annual expenses. The company said it should incur about $12.5 million in merger-related expenses.
Byline said the acquisition should be add to its 2018 earnings per share and be 14.5% accretive the next year. It should take about 3.3 years to earn back any dilution to Byline’s tangible book value.
Robert Yohanan, First Evanston’s chairman and CEO, will join Byline’s board.
Keefe, Bruyette & Woods and Vedder Price advised Byline. Piper Jaffray and Wachtell, Lipton, Rosen & Katz advised First Evanston.