Illinois bank M&A rebounds to pre-COVID levels in '22

Bank M&A activity in the state of Illinois returned to pre-pandemic levels in 2022.

There were 20 whole-company bank and thrift deals in the state last year, up from 16 in 2021 and eight in 2020, according to an S&P Global Market Intelligence analysis. Deal volume in the state matched the mark it saw in 2019.

The total number of whole-company bank and thrift deals in the U.S. in 2022 was 167, 72 of which took place in the Midwest.

Illinois-based deals in 2022

Although deal count increased in 2022, Illinois saw significantly more assets and deposits sold in 2021. The 20 Illinois bank deals in 2022 resulted in $4.86 billion in assets sold and $4.14 billion in deposits sold, while the 16 deals in 2021 resulted in $28.31 billion in sold assets and $22.79 billion in sold deposits.

The assets median of the Illinois-based bank targets in the 20 deals announced in the state was $109.4 million. Among those targets, Oak Brook-based Inland Bancorp Inc.'s total assets were the highest at $1.23 billion.

Inland will be sold to Chicago-based Byline Bancorp Inc. for $165.0 million in a cash-and-stock transaction expected to close in the second quarter. The deal provides Byline with "a replenishment to the bucket of low-cost, core deposits" and will allow it to "double-down in the stronger economic parts of Chicago," Hovde Group analyst Ben Gerlinger said in a December 2022 research note.

Only two transactions in this analysis had their values disclosed: the Byline-Inland deal and Bloomington-based HBT Financial Inc.'s pending acquisition of Springfield-based Town and Country Financial Corp., valued at $101.4 million.

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The first Illinois bank deal announced in 2022 was Marion-based Midwest Community Bancshares Inc.'s acquisition of Bank of Carbondale, which closed over the past summer. The last deal announced during the year was Decatur-based Land of Lincoln CU's pending all-cash purchase of substantially all the assets and liabilities of Colchester State Bank.