Byline Bancorp to Buy Illinois State Bancorp for $87.9 Million
The mixed cash-and-stock deal is meant to add a core deposit base and more density across Chicago communities.
Byline Bancorp, Inc. (BY) agreed to acquire Illinois State Bancorp, Inc. for approximately $87.9 million in a mixed cash-and-stock transaction that will add a stable core deposit base and increase market density across key communities.
Shareholders of Illinois State Bancorp are to receive approximately 1.4 million shares of Byline common stock and $28.9 million in cash. The deal is expected to close during the first quarter of 2027, subject to regulatory approvals, approval by Illinois State Bancorp shareholders, and the satisfaction of certain other closing conditions.
The combination enhances Byline’s presence throughout the Chicago market by expanding customer relationships and adding a community banking franchise with established local ties.
Roberto R. Herencia, Executive Chairman and Chief Executive Officer of Byline Bancorp, stated, “This partnership represents another meaningful step in Byline’s growth strategy and further strengthens our position in the Chicago market. Illinois State Bancorp has developed deep customer relationships and a strong community banking franchise. Together, we will be well-positioned to continue delivering the local decision-making, personalized service, and financial expertise our customers value while advancing our goal of becoming the preeminent commercial bank in Chicago.”
The consideration mix of stock and cash is consistent with other recent community-bank combinations that pair a public acquirer’s equity with a cash component. Equity Bancshares, Inc. (EQBK) announced a merger with Lincoln Bancorp in which Lincoln shareholders would receive about 77.5% of the consideration in EQBK stock and the remaining 22.5% in cash, with total consideration valued at approximately $123.8 million based on Equity’s September 2, 2026 spot price. That deal was expected to close in the fourth quarter of 2026.
Byline’s stated rationale centers on Chicago density rather than a geographic leap into a new state. The Illinois State Bancorp franchise is a source of core deposits and customer relationships that would sit alongside existing Chicago operations.
Closing remains contingent on the usual approvals. Shareholders of Illinois State Bancorp must vote on the transaction, and regulators must clear the combination before Byline can issue the approximately 1.4 million shares and fund the $28.9 million cash portion.