Byline Bancorp (BY) Corporate presentation summary

Transaction overview

• Acquisition of 100% of First Security Bancorp's outstanding common stock with a fixed exchange ratio of 2.1794 shares per First Security Bancorp share, valuing the deal at $38.4 million or $57.01 per share based on a $26.16 share price.

• $1.7 million in preferred shares to be redeemed prior to closing for an estimated $2.6 million.

• Price to tangible book value is 1.31x, or 1.06x adjusted for deferred tax asset recapture; core deposit premium is 2.9% (0.8% adjusted).

• Transaction is subject to stockholder and regulatory approvals, with closing anticipated in 2Q25.

Strategic rationale and financial impact

• Strengthens commercial banking position in Chicago with a high-quality, core deposit-rich balance sheet.

• Consistent with strategy of acquiring franchise-enhancing companies, with minimal tangible book value dilution and a short earn-back period.

• Expected mid-single digit EPS accretion and IRR exceeding cost of capital hurdles.

• Significant cost savings opportunities identified, with strong pro forma capital levels.

• Extensive due diligence and credit review process completed.

First Security Bancorp financial highlights

• Headquartered in Elmwood Park, IL, with $355 million in assets and $323 million in deposits.

• 96% core deposits and strong asset quality, with a loan/deposit ratio of 62.4% and NPAs/assets at 0.07%.

• Net income of $5.1 million, ROAA of 1.24%, and ROATCE of 19.1%.

• Loan portfolio diversified across multifamily, C&I, CRE, and other segments.