Byline Bancorp has agreed to acquire Illinois State Bancorp in a cash-and-stock transaction valued at approximately $87.9 million based on Byline’s October 5, 2026 closing share price.
Illinois State Bancorp and its wholly owned banking subsidiaries, First Nations Bank and The Bank of Bourbonnais, will merge with Byline as part of the transaction.
The combination is expected to expand Byline’s position across the Chicago market by adding customer relationships, deposits and greater density in several communities.
Following completion, the combined franchise is expected to operate 48 branches with approximately $10.5 billion in assets, $8 billion in loans and $8.4 billion in deposits.
Chicago-based Illinois State Bancorp had approximately $617.3 million in assets, $470.5 million in loans and $510.5 million in deposits as of June 30, 2026. Its banks currently operate three branches in Chicagoland and one in Bourbonnais, Illinois.
Under the merger agreement, Byline will issue approximately 1.4 million common shares and pay $28.9 million in cash to Illinois State Bancorp shareholders.
Byline will also pay approximately $5.1 million in cash to settle outstanding stock options.
Based on Byline’s October 5 closing price of $37.63 per share, the transaction represents a fully diluted value of approximately $87.9 million, or $261.23 per Illinois State Bancorp common share.
Both companies’ boards unanimously approved the transaction, which is expected to close during the first quarter of 2027, subject to regulatory approvals, Illinois State Bancorp shareholder approval and other customary closing conditions.
Vedder Price served as legal advisor to Byline. D.A. Davidson served as financial advisor to Illinois State Bancorp, while Barack Ferrazzano Kirschbaum & Nagelberg served as its legal advisor.
KEY QUOTES:
“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.”
Roberto R. Herencia, Executive Chairman and CEO of Byline Bancorp
“At Byline, we have always believed that successful partnerships begin with shared values, strong cultures, and a common commitment to serving customers and communities. Illinois State Bancorp embodies those qualities and has established an outstanding reputation across the markets it serves. We are pleased to add this high-quality and complementary Chicago-area franchise, which enhances our presence in attractive markets, expands our customer reach, and adds a stable core deposit base. We believe this partnership will drive sustainable growth, enhance long-term stockholder value, and reinforce our commitment to the local markets and communities we proudly serve.”
Alberto J. Paracchini, President of Byline Bancorp
“When evaluating the future of our franchise, it was critical to identify a partner that would preserve the values and customer-focused culture that define Illinois State Bancorp. We found that partner in Byline, whose strong Chicago market presence, relationship-driven approach to banking, commitment to local decision-making, and continued investment in technology, innovation, and fraud management closely align with our vision for the future. We believe this partnership will create meaningful opportunities for our customers, employees, and communities while building on the strengths of both organizations.”
Florian J. Barbi, Chairman, President and CEO of Illinois State Bancorp
