Byline Bancorp, Inc. and First Security Bancorp, Inc. Announce Definitive Merger Agreement
Byline Bancorp (NYSE: BY) and First Security Bancorp have announced a definitive merger agreement valued at approximately $41.0 million. The transaction will combine First Security Trust and Savings Bank with Byline Bancorp, strengthening Byline's position as Chicago's largest community bank with assets under $10 billion. Post-merger, Byline will have $7.3 billion in loans, $7.8 billion in deposits, and 45 branches across the Chicago metropolitan area.
The deal terms include 2.1794 Byline shares for each First Security Bancorp share, representing approximately $57.01 per First Security share based on Byline's closing price of $26.16 on September 27, 2024. The merger is expected to close in Q2 2025, subject to regulatory approvals and First Security Bancorp stockholder approval.
Byline Bancorp (NYSE: BY) e First Security Bancorp hanno annunciato un accordo di fusione definitivo del valore di circa 41 milioni di dollari. La transazione unir脿 First Security Trust e Savings Bank con Byline Bancorp, rafforzando la posizione di Byline come la pi霉 grande banca comunitaria di Chicago con attivi sotto i 10 miliardi di dollari. Dopo la fusione, Byline avr脿 7,3 miliardi di dollari in prestiti, 7,8 miliardi di dollari in depositi e 45 filiali nell'area metropolitana di Chicago.
Le condizioni dell'operazione includono 2,1794 azioni di Byline per ogni azione di First Security Bancorp, che rappresentano circa 57,01 dollari per azione di First Security, basato sul prezzo di chiusura di Byline di 26,16 dollari il 27 settembre 2024. La fusione dovrebbe chiudersi nel Q2 2025, subordinatamente alle approvazioni normative e all'approvazione degli azionisti di First Security Bancorp.
Byline Bancorp (NYSE: BY) y First Security Bancorp han anunciado un acuerdo de fusi贸n definitivo valorado en aproximadamente 41 millones de d贸lares. La transacci贸n combinar谩 First Security Trust y Savings Bank con Byline Bancorp, fortaleciendo la posici贸n de Byline como el banco comunitario m谩s grande de Chicago con activos inferiores a 10 mil millones de d贸lares. Despu茅s de la fusi贸n, Byline tendr谩 7.3 mil millones de d贸lares en pr茅stamos, 7.8 mil millones de d贸lares en dep贸sitos y 45 sucursales en el 谩rea metropolitana de Chicago.
Los t茅rminos del acuerdo incluyen 2.1794 acciones de Byline por cada acci贸n de First Security Bancorp, lo que representa aproximadamente 57.01 d贸lares por acci贸n de First Security, basado en el precio de cierre de Byline de 26.16 d贸lares el 27 de septiembre de 2024. Se espera que la fusi贸n se complete en el Q2 2025, sujeto a aprobaciones regulatorias y la aprobaci贸n de los accionistas de First Security Bancorp.
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瓿勳暯 臁瓣贝鞐愲姅 韻检姢韸 鞁滍亹毽嫲 氡呾渐鞚 臧 欤检嫕鞐 雽頃 2.1794 氚旍澕霛检澑 欤检嫕鞚 韽暔霅橃柎 鞛堨溂氅, 鞚措姅 2024雲 9鞗 27鞚 氚旍澕霛检澑鞚 膦呹皜鞚 26.16雼煬毳 旮办鞙茧 韻检姢韸 鞁滍亹毽嫲 欤检嫕雼 鞎 57.01雼煬毳 雮橅儉雰呺媹雼. 頃╇硲鞚 2025雲 2攵勱赴鞐 毵堦皭霅 瓴冹溂搿 鞓堨儊霅橂┌, 鞚措姅 攴滌牅 鞀轨澑鞚 氚涥碃 韻检姢韸 鞁滍亹毽嫲 氡呾渐 欤检＜ 鞀轨澑鞚 氚涭潉 瓴冹潉 鞝勳牅搿 頃╇媹雼.
Byline Bancorp (NYSE: BY) et First Security Bancorp ont annonc茅 un accord de fusion d茅finitif d'une valeur d'environ 41 millions de dollars. La transaction combinera First Security Trust et Savings Bank avec Byline Bancorp, renfor莽ant ainsi la position de Byline en tant que plus grande banque communautaire de Chicago avec des actifs inf茅rieurs 脿 10 milliards de dollars. Apr猫s la fusion, Byline disposera de 7,3 milliards de dollars en pr锚ts, de 7,8 milliards de dollars en d茅p么ts et de 45 agences dans la r茅gion m茅tropolitaine de Chicago.
Les conditions de l'accord incluent 2,1794 actions de Byline pour chaque action de First Security Bancorp, repr茅sentant environ 57,01 dollars par action de First Security, bas茅 sur le prix de cl么ture de Byline de 26,16 dollars le 27 septembre 2024. La fusion devrait 锚tre finalis茅e au Q2 2025, sous r茅serve des approbations r茅glementaires et de l'approbation des actionnaires de First Security Bancorp.
Byline Bancorp (NYSE: BY) und First Security Bancorp haben eine endg眉ltige Fusionsvereinbarung im Wert von etwa 41 Millionen US-Dollar angek眉ndigt. Die Transaktion wird First Security Trust und Savings Bank mit Byline Bancorp kombinieren und somit die Position von Byline als gr枚脽te Gemeinschaftsbank in Chicago mit einem Verm枚gen von weniger als 10 Milliarden US-Dollar st盲rken. Nach der Fusion wird Byline 7,3 Milliarden US-Dollar an Krediten, 7,8 Milliarden US-Dollar an Einlagen und 45 Filialen im Ballungsraum Chicago haben.
Die Bedingungen des Deals umfassen 2,1794 Byline-Aktien f眉r jede First Security Bancorp-Aktie, was basierend auf dem Schlusskurs von Byline von 26,16 US-Dollar am 27. September 2024 etwa 57,01 US-Dollar pro First Security-Aktie entspricht. Die Fusion wird voraussichtlich im Q2 2025 abgeschlossen, vorbehaltlich der Genehmigungen durch die Regulierungsbeh枚rden und der Zustimmung der Aktion盲re von First Security Bancorp.
- Strengthens Byline's position as Chicago's largest community bank under $10 billion in assets
- Expands Byline's loan portfolio to $7.3 billion and deposit base to $7.8 billion
- Adds First Security's solid core deposit base, enhancing balance sheet flexibility
- Diversifies Byline's loan mix through the acquisition
- Increases Byline's branch network to 45 locations in the Chicago metropolitan area
- Potential integration challenges during the merger process
- Issuance of approximately 1.5 million new Byline shares may lead to dilution for existing shareholders
- Cash redemption of First Security Bancorp preferred shares worth $2.6 million
Insights
This merger agreement between Byline Bancorp and First Security Bancorp is a significant development in the Chicago banking landscape. The
Key financial aspects include:
- Stock-and-cash transaction valued at
$41 million - Exchange ratio of 2.1794 Byline shares per First Security share
- Implied value of
$57.01 per First Security share - First Security brings
$354.8 million in assets,$201.4 million in loans and$321.8 million in deposits
This merger aligns with Byline's growth strategy and should enhance its market position. The addition of First Security's solid core deposit base improves Byline's balance sheet flexibility, while the loan mix adds portfolio diversification. Investors should monitor the potential for synergies and the impact on Byline's financial metrics post-integration.
This merger signifies a notable consolidation in the Chicago banking market, with potential ripple effects for competitors and customers alike. Byline's strategic move to become the largest community bank in Chicago with assets under
- Strengthens Byline's competitive stance against larger national banks
- Expands its footprint to 45 branches, enhancing accessibility for customers
- Potentially improves economies of scale, which could lead to better product offerings or rates
The merger also reflects the ongoing trend of consolidation in the banking industry, particularly among community banks seeking to achieve scale and efficiency. For investors, this move could signal Byline's ambition and capacity for further growth. The success of the integration and the realization of projected synergies will be important factors to watch in the coming quarters. The market's reaction to this news could provide insights into investor sentiment towards community bank mergers and acquisitions in the current economic climate.
The partnership will present a unique opportunity to combine two culturally aligned franchises by strengthening Byline鈥檚 position as the preeminent commercial bank in
First Security Bancorp, Inc., the parent company of First Security Trust and Savings Bank, is headquartered in
Roberto R. Herencia, Executive Chairman and Chief Executive Officer of Byline Bancorp, Inc., stated, 鈥淔irst Security Trust and Savings Bank 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. At Byline, our M&A strategy is centered on finding the right partners 鈥 those who align with our values and strengthen our presence in complementary markets.鈥
鈥淲e are pleased to add this high-quality and complimentary Chicagoland franchise through a partnership that aligns with our strategy of being the preeminent commercial bank in
Danny Wirtz, Chairman and Chief Executive Officer of First Security Bancorp, Inc., said, 鈥淏y joining forces with Byline, we are aligning with a partner that shares our commitment to exceptional customer service, innovation and community focus. First Security Bancorp was founded on the principles of offering tailored products and services to meet our customers鈥 financial needs, and this partnership will further those principles. We believe Byline can leverage First Security鈥檚 strengths to drive continued growth in the
Transaction Details
Under the terms of the definitive merger agreement, at the closing of the transaction, Byline will issue 2.1794 shares of its common stock for each outstanding share of First Security Bancorp common stock, or approximately 1.5 million shares to First Security Bancorp common stockholders, subject to adjustment per the terms of the agreement. Based upon the closing price of Byline鈥檚 common stock of
The transaction has been approved unanimously by each company鈥檚 board of directors and is expected to close during the second quarter of 2025, and is subject to regulatory approvals, the approval of First Security Bancorp, Inc.鈥檚 stockholders, and the satisfaction of certain other closing conditions.
Stephens Inc. served as financial advisor to Byline, and Vedder Price P.C. served as Byline鈥檚 legal advisor. D.A. Davidson & Co. served as financial advisor to First Security Bancorp, and Barack Ferrazzano Kirschbaum & Nagelberg LLP served as First Security Bancorp鈥檚 legal advisor.
Presentation
A slide presentation relating to the transaction can be accessed on the 鈥淣ews and Events鈥 page of Byline鈥檚 website at .
About Byline Bancorp, Inc.
Headquartered in
About First Security Bancorp, Inc.
First Security Bancorp, Inc. is the parent company of First Security Trust and Savings Bank, a full service community bank that offers commercial and community banking services through its headquarters in
Forward-Looking Statements
This press release may contain 鈥渇orward-looking statements鈥 within the meaning of the
Important Additional Information and Where to Find It
This communication is being made in respect of the proposed merger transaction involving Byline and First Security Bancorp. Byline intends to file a registration statement on Form S-4 with the SEC, which will include a proxy statement of First Security Bancorp and a prospectus of Byline, and Byline will file other documents regarding the proposed transaction with the SEC. A definitive proxy statement/prospectus will also be sent to First Security Bancorp stockholders seeking the required stockholder approval of the proposed transaction. Before making any voting or investment decision, investors and security holders of First Security Bancorp are urged to carefully read the entire registration statement and proxy statement/prospectus, when they become available, as well as any amendments or supplements to these documents, because they will contain important information about the proposed transaction. The documents filed by Byline with the SEC may be obtained free of charge at the SEC鈥檚 website at . In addition, the documents filed by Byline may be obtained free of charge at its website at . Alternatively, these documents, when available, can be obtained free of charge from Byline upon written request to Byline Bancorp, Inc., Attn: Brooks Rennie, Head of Investor Relations, 180 North LaSalle Street, 3rd Floor,
Information regarding the interests of certain of First Security Bancorp鈥檚 directors and executive officers and a description of their direct and indirect interests, by security holdings or otherwise, will be included in the registration statement on Form S-4 regarding the proposed transaction when it becomes available.
Participants in this Transaction
Byline, First Security Bancorp, their respective directors and executive officers and certain of their other members of management and employees may be deemed to be participants in the solicitation of proxies from First Security Bancorp stockholders in connection with the proposed transaction. Information about the directors and executive officers of Byline may be found in Byline鈥檚 Annual Report on Form 10-K for the year ended December 31, 2023, as filed with the SEC on March 4, 2024 and in Byline鈥檚 proxy statement for its 2024 Annual Meeting of Stockholders, as filed with the SEC on April 22, 2024, copies of which can be obtained free of charge from Byline or from the SEC鈥檚 website as indicated above. To the extend the holdings of Byline鈥檚 securities by its directors and executive officers have changed since the amounts set forth in Byline鈥檚 proxy statement for its 2024 Annual Meeting of Stockholders, such changes have been or will be reflected on Statements of Change in Ownership on Form 4 filed with the SEC. In addition, information about the directors and executive officers of Byline and First Security Bancorp and other persons who may be deemed participants in the transaction will be included in the proxy statement/prospectus and other relevant materials when filed with the SEC.
View source version on businesswire.com:
Contact For Byline Bancorp, Inc.:
Investors / Media:
Brooks Rennie
Head of Investor Relations
Byline Bank
(312) 660-5805
brennie@bylinebank.com
Contact For First Security Bancorp, Inc.:
Media:
Julia Sznewajs
Res Publica Group
(312) 755-3574
Source: Byline Bancorp, Inc.
FAQ
What is the value of the merger between Byline Bancorp (BY) and First Security Bancorp?
How many Byline shares will First Security Bancorp shareholders receive in the merger?
When is the Byline Bancorp (BY) and First Security Bancorp merger expected to close?
How will the merger affect Byline Bancorp's (BY) position in the Chicago banking market?
