Byline Bancorp agreed on 6 October 2026 to acquire Chicago-based Illinois State Bancorp in a cash-and-stock deal valued at about US$87.9m, or US$261.23 per share.
Why Byline Bancorp, Inc. is buying Illinois State Bancorp, Inc.
Byline said the deal adds a stable core deposit base and increases its market density in the Chicago area. Illinois State Bancorp owns First Nations Bank and The Bank of Bourbonnais, which together run three branches in Chicagoland and one in Bourbonnais.
Deal terms and financing
Byline will issue about 1.4 million common shares and pay US$28.9m in cash to Illinois State shareholders, plus about US$5.1m in cash for outstanding options. The value is based on Byline's 5 October closing price of US$37.63.
Regulatory approvals and timing
Both boards approved the merger unanimously. It requires regulatory approvals and the approval of Illinois State shareholders, and is expected to close in the first quarter of 2027.
Market context
This continues Byline's run of Illinois bank acquisitions after its purchases of Inland Bancorp and First Security Bancorp. The combined franchise will operate 48 branches with about US$8.4bn in deposits.
