US bank holding firms Inland Bancorp, Byline Bancorp sign merger deal

US-based Inland Bancorp and its fully-owned subsidiary Inland Bank and Trust will merge with Chicago-headquartered Byline Bancorp in a cash and stock deal valued at around $165 million.

As per the terms of the merger agreement, Byline Bancorp will issue nearly 6.4 million of its shares and $22.9 million in cash to Inland Bancorp’s shareholders at the closing of the deal.

Inland Bank and Trust with 10 branch locations renders commercial and retail banking services in the western and northern suburbs of Chicago.

Byline Bancorp is the parent company of Byline Bank, which has around $7.3 billion in assets and runs over 30 full-service branch locations throughout the Chicago and Milwaukee metropolitan areas.

The bank holding company, which will increase its assets to under $10 billion following the deal is expected to strengthen its presence as Chicago’s major community bank. Besides, it will increase its footprint in other suburban Chicago communities following the merger pact.

Roberto Herencia — Byline Bancorp Executive Chairman and CEO said: “Inland Bank and Trust is a well-established and trusted financial institution with deep client and community relationships, which we look forward to continuing.

“Joining forces with Inland Bancorp brings to all of our customers an expanded footprint across Chicago. We are very excited to welcome Inland Bancorp customers and colleagues to Byline.”

With 47 branches across the greater Chicago metropolitan area, the combined entity will have about $8.5 billion in assets, $6.2 billion in loans and $6.6 billion in deposits.

Based on financial metrics as of 30 September 2022, Inland Bancorp had total assets of $1.2 billion, total loans of $854 million, and $1 billion in total deposits.

Peter Stickler — Inland Bank and Trust President and CEO said: “By joining forces with Byline, we recognize the opportunity to align with a partner that shares our passion for providing high-quality customer service.

“The transaction will also increase our lending capacity by leveraging a larger balance sheet and access to a broader array of products and services, including leading-edge digital capabilities.”

The transaction is anticipated to complete during the second quarter of 2023, subject to Inland Bancorp’s stockholders’ approval, regulatory approvals, and certain other closing conditions.