425: First Busey Corporation to Merge with CrossFirst Bankshares in $20 Billion Deal

CrossFirst Bankshares and First Busey Corporation have entered into a definitive agreement to merge, creating a premier commercial bank with approximately $20 billion in combined assets.

Summary

• CrossFirst Bankshares, Inc. and First Busey Corporation have agreed to merge.
• The holding companies are expected to merge in the first or second quarter of 2025, with the banks merging in mid-2025.
• The combined entity will operate as First Busey Corporation and Busey Bank.
• The merger will create a commercial bank with approximately $20 billion in combined assets and 77 locations across 10 states.
• The combined franchise will offer an enhanced suite of solutions, including wealth management and payment technology capabilities.
• The merger is subject to customary closing conditions, including regulatory and shareholder approvals.

Sentiment

Score: 7

Explanation: The document conveys a positive outlook on the merger, emphasizing the benefits for clients, teams, and communities. However, it also acknowledges potential risks and uncertainties associated with the transaction.

Positives

• The merger will create a larger, more diversified financial institution.
• Customers will have access to a broader range of services and solutions.
• The combined company will have an expanded geographic footprint.
• The merger is expected to benefit clients, teams, and communities.
• The combined company will have approximately $20 billion in combined assets.

Risks

• The merger is subject to regulatory and shareholder approvals, which may not be obtained.
• The integration of the two companies may be more difficult or costly than expected.
• The combined company may not achieve the expected synergies and operating efficiencies.
• The announcement or completion of the merger could have adverse effects on the market price of the common stock of either company.
• The merger agreement could be terminated.

Future Outlook

The combined companies expect to create a premier commercial bank with an enhanced ability to meet the growing needs of customers and communities.

Management Comments

• Mike Maddox, CEO of CrossFirst Bank, stated that the merger is about strength in combining like-minded organizations that prioritize people and service.
• The combined company will proudly do the right thing for clients, give back to communities, and continue to build trusted relationships.

Industry Context

The banking industry is experiencing consolidation as institutions seek to gain scale, expand their geographic footprint, and offer a wider range of services.

Comparison to Industry Standards

• The combined entity with $20 billion in assets will be a significant player in the Midwest and Southwest regions.
• Comparable regional banks include companies like Commerce Bancshares and UMB Financial Corporation, which operate in similar markets.
• The merger aims to achieve similar benefits of scale and efficiency seen in other recent bank mergers.

Stakeholder Impact

• Shareholders of both companies will be asked to vote on the merger.
• Customers will have access to a broader range of services and solutions.
• Employees may experience changes as the two companies integrate.
• Communities served by both banks are expected to benefit from the combined company's increased resources and commitment.

Next Steps

• Busey will file a registration statement on Form S-4 with the SEC.
• A joint proxy statement/prospectus will be sent to stockholders of Busey and CrossFirst seeking approvals.
• The holding companies are expected to merge in the first or second quarter of 2025.
• The banks are expected to merge in mid-2025.

Key Dates