Byline Bancorp, Inc. (“Byline”), the holding company for Byline Bank, headquartered in Chicago, Illinois, and Ridgestone Financial Services, Inc. (“Ridgestone”), the holding company for Ridgestone Bank, headquartered in Brookfield, Wisconsin, jointly announced today the signing of a definitive merger agreement that will result in the acquisition by Byline of Ridgestone. The transaction creates a leading community banking franchise with total assets of $3.0 billion and more than 65 branches across Chicagoland and one location in Brookfield, Wisconsin. Pending receipt of regulatory and shareholder approvals and subject to other customary closing conditions, the transaction is expected to close in late 2016. The combined bank will continue to operate under the Byline name and maintain its headquarters in Chicago. The transaction is projected to be accretive to Byline's earnings per share in the first year following closing and exceeds Byline’s targeted return thresholds.
The approximate aggregate merger consideration to be paid to shareholders of Ridgestone is $105 million, which amount is subject to possible downward adjustment. Ridgestone shareholders may elect to receive either shares of common stock of Byline or cash, provided that 65% of the aggregate merger consideration will be paid in the form of shares of Byline common stock and 35% of the aggregate merger consideration will be paid in cash.
Ridgestone, which had total assets of $433 million at March 31, 2016, is a leading Small Business Administration (“SBA”) lender nationwide and consistently ranked as one of the Top 10 SBA lenders in the country. Pro forma for the acquisition, Byline will be the 6th largest SBA originator in the U.S. and the largest SBA originator in Illinois and Wisconsin as measured by 2015 origination volume.
"We believe this transaction brings significant and specialized lending expertise to our banking platform. It’s a great opportunity to add an excellent team with a proven track record to our organization. The transaction furthers our commitment to provide optimal financial solutions and exceptional service to our customers and their local communities,” said Alberto Paracchini, CEO of Byline Bank. Bruce Lammers, CEO of Ridgestone, added, “We look forward to combining resources with Byline Bank, which will allow us to further grow our government guaranteed lending business and provide additional products and services to our business customers.”
The combined bank will have total loans of $1.8 billion, and deposits of $2.6 billion, and will service more than 40,000 deposit and loan customers through 69 branches across the Chicagoland area and Wisconsin. Mr. Lammers will join the Byline management team and continue to lead the SBA and government guaranteed lending business of the combined company. As part of the transaction, Steve Rull, one of Ridgestone’s current directors, will join the Byline Board of Directors.
Keefe, Bruyette & Woods is acting as financial advisor to Byline Bancorp, Inc. Vedder Price P.C. and Sullivan & Cromwell, LLP are serving as Byline’s legal counsel. Ridgestone is being advised by Piper Jaffray & Co. and Barack Ferrazzano Kirschbaum & Nagelberg LLP is serving as Ridgestone’s legal counsel.
About Byline Bank
Byline Bank is a full service commercial bank offering distinct service and a full array of banking products and services to retail and business customers throughout the Chicago metropolitan area. The bank had $2.6 billion in assets at March 31, 2016 and operates more than 65 full service branch locations.
About Ridgestone Bank
Ridgestone Bank is a leading Small Business Administration lender nationwide, consistently ranked as one of the Top 10 SBA lenders in the country. Ridgestone specializes in the SBA 7(a) Loan Program, the SBA CAPLines Program, the SBA 504 Loan Program, and U.S. Department of Agriculture (“USDA”) Loans. Over the past several years, Ridgestone has been the #1 SBA lender in Illinois and the #1 volume lender in its asset size in Wisconsin and is also recognized as a valued partner by the USDA for its commitment to small businesses. Ridgestone Bank is a privately-held bank with full-service branch locations in Brookfield, Wis. and Schaumburg, Ill., as well as lenders in Indianapolis, Northeast Wisconsin, Northcentral Wisconsin, Tennessee, Southern California, Ohio and Madison, Wis.
For more information please contact:
Byline Bancorp, Inc.
Director of Marketing, Byline Bank
Ridgestone Financial Services, Inc.
Marketing Officer, Ridgestone Bank