Byline Bancorp finalizes merger with First Security Bancor

Published 01/04/2025, 12:14
Byline Bancorp finalizes merger with First Security Bancor

The press release also contained forward-looking statements regarding the expected benefits and outcomes of the merger. However, Byline Bancorp has cautioned that these statements are subject to various risks and uncertainties and that actual results may differ from expectations. Investors should note that the company is currently trading below its InvestingPro Fair Value, with its next earnings announcement scheduled for April 24, 2025. For deeper insights into Byline’s valuation and growth prospects, including access to comprehensive Pro Research Reports covering 1,400+ top stocks, visit InvestingPro. Investors should note that the company is currently trading below its InvestingPro Fair Value, with its next earnings announcement scheduled for April 24, 2025. For deeper insights into Byline’s valuation and growth prospects, including access to comprehensive Pro Research Reports covering 1,400+ top stocks, visit InvestingPro.

The merger is seen as a move to strengthen Byline’s position as a leading commercial bank in the Chicago area. Roberto R. Herencia, Executive Chairman and CEO of Byline Bancorp, highlighted the cultural alignment and community focus of both banks as a positive factor in the merger. Alberto J. Paracchini, President of Byline Bancorp, added that the union is expected to enhance the company’s community and commercial banking culture through shared commitments to customer support and financial services.

According to the terms of the agreement, each share of First Security Bancorp’s common stock has been converted into the right to receive 2.3539 shares of Byline common stock, with the total merger consideration valued at approximately $41.5 million. Additionally, First Security Bancorp’s preferred shares were redeemed in cash with an aggregate value of approximately $2.4 million.

Byline Bank, headquartered in Chicago, serves small- and medium-sized businesses, financial sponsors, and consumers through its 46 branch locations across the Chicago and Milwaukee metropolitan areas. The bank is recognized for its commercial and community banking products and services, including equipment leasing solutions, and is among the top Small Business Administration lenders in the United States.

The press release also contained forward-looking statements regarding the expected benefits and outcomes of the merger. However, Byline Bancorp has cautioned that these statements are subject to various risks and uncertainties and that actual results may differ from expectations.

This merger is part of Byline Bancorp’s broader strategy to expand its footprint and enhance its service offerings. The information for this article is based on a press release statement.

In other recent news, Byline Bancorp Inc. reported stronger-than-expected financial results for the fourth quarter of 2024. The company posted earnings per share of $0.69, surpassing the consensus forecast of $0.62. Revenue also exceeded expectations, reaching $104.67 million compared to the anticipated $100.37 million. Byline Bancorp’s robust performance is attributed to its strategic focus on commercial banking, leasing, and real estate. The firm reported a net income of $30.3 million for the quarter, contributing to a full-year net income of $121 million. Analysts have noted the company’s consistent trend of surpassing market expectations, which has bolstered investor confidence. Looking ahead, Byline Bancorp anticipates mid-single-digit loan growth in 2025 and expects to finalize the First Security transaction in the second quarter of 2025. The company also projects net interest income of $86-88 million for the first quarter of 2025.

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