Byline Bancorp, a commercial bank serving small- and medium-sized businesses, will acquire First Evanston Bancorp in a cash and stock transaction valued at approximately $169 million.

The deal will result in Chicago’s largest community bank with assets under $10 billion. The combined organization will have approximately $4.4 billion in assets, $3.1 billion in loans and $3.5 billion in deposits, with 66 branches across the region.

Evanston, IL-based First Evanston, the parent company of First Bank & Trust, has total assets of $1.1 billion, total loans of $892 million and total deposits of $994 million. Upon completion of the transaction, First Evanston’s 10 locations will operate under the Byline Bank name and brand.

“The acquisition of First Evanston is an exciting milestone for Byline,” explained Alberto Paracchini, president and CEO of Byline. “We look forward to welcoming First Evanston’s customers and employees to the Byline family.”

Robert Yohanan, chairman and CEO of First Evanston, said, “The combination of Byline and First Evanston will create one of the premier community banks serving the Chicago area. We believe our customers will be well served by being a part of a larger community bank while still providing the high level of customer service they have always enjoyed at First Evanston.”

Under the terms of the definitive agreement, at the closing of the transaction each share of First Evanston’s common stock will be converted into the right to receive 3.994 shares of Byline common stock and an amount in cash equal to $27.0 million divided by the number of outstanding shares of First Evanston common stock as of the closing date.

The agreement was approved unanimously by each company’s board of directors and is expected to close during the first half of 2018. The final close is subject to regulatory approvals, the approval of First Evanston’s and Byline’s shareholders and the satisfaction of certain other closing conditions.

Keefe, Bruyette & Woods, A Stifel Company served as financial advisor to Byline, with Vedder Price P.C. serving as legal advisor. Piper Jaffray served as financial advisor to First Evanston, while Wachtell, Lipton, Rosen & Katz served as its legal advisor.