Byline Bancorp and First Security Bancorp announce merger agreement

Byline Bancorp (BY) and First Security Bancorp jointly announced that they have entered into a definitive merger agreement pursuant to which First Security Bancorp and its wholly owned subsidiary, First Security Trust and Savings Bank will combine with Byline Bancorp in a cash and stock transaction valued at approximately $41.0M based upon Byline’s closing stock price as of September 27. The partnership will present an opportunity to combine two franchises by strengthening Byline’s position as the preeminent commercial bank in Chicago. The transaction will solidify Byline’s position as Chicago’s largest community bank with assets under $10B, $7.3B in loans and $7.8B in deposits, with 45 branches across the greater Chicago metropolitan area. Under the terms of the definitive merger agreement, at the closing of the transaction, Byline will issue 2.1794 shares of its common stock for each outstanding share of First Security Bancorp common stock, or approximately 1.5M shares to First Security Bancorp common stockholders, subject to adjustment per the terms of the agreement. The transaction has been approved unanimously by each company’s board and is expected to close during Q2 of 2025, and is subject to regulatory approvals, the approval of First Security Bancorp’s stockholders, and the satisfaction of certain other closing conditions.