Byline Bancorp and Illinois State Bancorp entered into a definitive merger agreement pursuant to which Illinois State Bancorp and its wholly owned banking subsidiaries will merge with and into Byline Bancorp in a cash and stock transaction valued at approximately $87.9 million, based upon Byline’s closing stock price on Oct. 5, 2026.
The transaction enhances Byline’s presence throughout the Chicago market by adding a stable core deposit base, expanding customer relationships and increasing market density across key communities. Upon closing, the combined franchise will operate 48 branches with approximately $10.5 billion in assets, $8.0 billion in loans, and $8.4 billion in deposits.
“This partnership represents another meaningful step in Byline’s growth strategy and further strengthens our position in the Chicago market,” Roberto R. Herencia, executive chairman and CEO of Byline Bancorp, said. “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.”
Alberto J. Paracchini, president of Byline Bancorp, added, “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.”
Florian J. Barbi, chairman, president and CEO of Illinois State Bancorp, said, “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.”
Transaction Details
Under the terms of the definitive merger agreement, at the closing of the transaction, Byline will issue approximately 1.4 million shares of common stock and $28.9 million in cash to Illinois State Bancorp shareholders. In addition, Byline will pay approximately $5.1 million in cash in connection with the settlement of all outstanding stock options. Based upon the closing price of Byline’s common stock of $37.63 on October 5, 2026, this represents a fully diluted transaction value of approximately $87.9 million or $261.23 per Illinois State Bancorp common share.
The transaction has been approved unanimously by each company’s board of directors and is expected to close during the first quarter of 2027, and is subject to regulatory approvals, the approval of Illinois State Bancorp’s shareholders, and the satisfaction of certain other closing conditions.
Vedder Price served as Byline’s legal advisor. D.A. Davidson & Co. served as financial advisor to Illinois State Bancorp, and Barack Ferrazzano Kirschbaum & Nagelberg served as Illinois State Bancorp’s legal advisor.
