Byline Bancorp to acquire Oak Park River Forest Bankshares for $42M
Byline Bancorp and Oak Park River Forest Bankshares have entered into a definitive agreement which provides for the acquisition by Byline of Oak Park River Forest in a cash and stock transaction valued at approximately $42.0M. Oak Park River Forest, the parent company of Community Bank of Oak Park River Forest, has total assets of $325M, total loans of $254M and total deposits of $293M as of June 30. Founded in 1996, Community Bank offers commercial, retail and mortgage banking services. As of June 30, 2018, Community Bank's deposit base consisted of 93% core deposits, with a cost of deposits of 0.15% during Q2. At the closing of the transaction each outstanding share of Oak Park River Forest's common stock will be converted into the right to receive 7.9321 shares of Byline common stock and $33.38 in cash. Byline currently estimates pre-tax expense reductions associated with the transaction will be approximately 40% of Community Bank's expense base. Byline expects the transaction to be approximately 5.5% accretive to earnings per share in 2020 excluding one-time expenses, with an expected tangible book value per share dilution earn-back period of approximately three years. The transaction is expected to close by Q2.