Evanston's Only Community Bank Sold

EVANSTON, IL — Evanston's only community bank has been sold to the parent company of Byline Bank last week in a $169 million buyout deal announced last week. Shareholders in First Evanston Bancorp, the parent company of First Bank & Trust, will get $27 million in cash with the rest of the payment coming in Byline Bancorp stock.

First Evanston has 10 branches, including three in Evanston, and 123 employees, according to its latest federal filings from September. Byline said it plans to reduce expenses by nearly 30 percent in a release announcing the deal.

Chicago-based Byline, which was listed publicly in June, said it expects to add earnings from the deal, with a boost of 14.5 percent expected in 2019.

Robert Yohanan, First Evanston's chairman and CEO, founded the bank in 1995.

“The combination of Byline and First Evanston will create one of the premier community banks serving the Chicago area," he said, in a release announcing the deal.

After the deal goes through, a combined 66 locations will operate under the Byline brand.

"We believe our customers will be well served by being a part of a larger community bank offering greater convenience and a broader selection of products and services, while still providing the high level of customer service they have always enjoyed at First Evanston,” Yohanan said.

Byline bank's CEO, Alberto Parachhini, described the deal as an "exciting milestone" and said the company expects the acquisitions will accelerate its progress "toward being a high performing financial institutition."

“We look forward to welcoming First Evanston’s customers and employees to the Byline family," he said. "First Evanston adds significant strength, both in terms of clients and talent, to our commercial banking business, allows us to expand our footprint into attractive Chicagoland markets and further solidifies our strong core deposit base."

Crain's Chicago Business reports the valuation of First Evanston as 1.72 times its tangible book value puts it roughly in line with other similar recent deals in Chicago. The deal means Byline Bank will have $4.4 billion in assets and strengthen its position in the relatively wealthy North Shore.

_{Top photo: First Bank & Trust Evanston headquarters | Google Street View}