Byline to enter new Chicago markets with Oak Park acquisition
Byline Bancorp in Chicago has agreed to buy Oak Park River Forest Bankshares in Oak Park, Ill.
The $4.8 billion-asset Byline said in a press release Wednesday that it will pay $42 million in cash and stock for the $325 million-asset Oak Park. The deal is expected to close in the second quarter.
The acquisition allows Byline to enter the Oak Park and River Forest markets around Chicago while adding nearly $300 million in low-cost core deposits. Oak Park has three branches and $254 million in loans.
Byline said it expects to cut about 40% of Oak Park’s annual noninterest expenses.
Byline said it expects the deal to be 5.5% accretive to its 2020 earnings per share. It should take about three years to earn back any dilution to Byline’s tangible book value.
“We believe the combination … will enhance the customer banking experience by offering greater convenience while still providing the same commitment to superior customer service,” Alberto Paracchini, Byline’s president and CEO, said in the release.
"This acquisition will provide us with a strong presence in … two Chicago metropolitan markets with communities that avidly support local business and community development," Paracchini added.
Keefe, Bruyette & Woods and Sullivan & Cromwell advised Byline. Monroe Financial Partners and Vedder Price advised Oak Park.