425: First Busey Corporation to Merge with CrossFirst Bankshares in Mid-2025

CrossFirst Bankshares and First Busey Corporation have entered into a definitive agreement to merge, creating a financial institution with approximately $20 billion in combined assets, expected to be completed by mid-2025.

Summary

• CrossFirst Bankshares, Inc. and First Busey Corporation have agreed to merge, creating a larger financial institution.
• The merger is expected to be completed in mid-2025, pending regulatory and shareholder approvals.
• The combined company will have approximately $20 billion in assets and operate 77 locations across 10 states.
• Customers of both banks will have access to an expanded range of services and locations.
• Until the merger is complete, both banks will continue to operate independently.
• Busey Bank has 62 locations across four states: Illinois, Missouri, Indiana and Florida.
• Busey Wealth Management's assets under care were approximately $13.0 billion as of June 30, 2024.
• FirsTech, Inc., a Busey subsidiary, processes approximately $12 billion in payments from more than 40 million transactions annually.

Sentiment

Score: 8

Explanation: The document conveys a positive outlook on the merger, emphasizing the benefits for customers, employees, and shareholders. The tone is optimistic and confident about the future of the combined company.

Positives

• Customers will benefit from an expanded footprint throughout the Midwest, Southwest, and Florida.
• Customers will gain access to a more comprehensive suite of financial solutions, including Busey's wealth management services.
• Customers will continue to work with the same bankers they have relationships with.
• The merger unites two like-minded organizations that prioritize people and service.
• The combined company will have a stronger presence and be better positioned to compete in the current environment.

Risks

• The merger is subject to regulatory and shareholder approvals, and may not be completed on the expected timeline or at all.
• Integration of the two companies may be more difficult, time-consuming, or costly than expected.
• The announcement of the merger could have adverse effects on the market price of the common stock of either company.
• The companies may be unable to achieve expected synergies and operating efficiencies.
• The merger could result in the loss of customers or key personnel.
• Changes in interest rates, economic conditions, or regulations could negatively impact the combined company.

Future Outlook

The combined company aims to create a premier commercial bank with an expanded footprint and a comprehensive suite of financial services, while maintaining a high-touch approach to personalized service.

Management Comments

• The collective, overarching rationale for uniting with Busey Bank is simple: there is strength in combining two like-minded, dynamic organizations that prioritize people and service.
• As one, we will continue to do the right thing for our clients, serve in extraordinary ways, and be a force for good in our communities.

Industry Context

This merger reflects a trend of consolidation in the banking industry, as institutions seek to gain scale, expand their geographic reach, and offer a wider range of services to compete more effectively.

Comparison to Industry Standards

• The combined entity, with approximately $20 billion in assets, will be a significant regional player, comparable in size to other large regional banks.
• Busey's wealth management division, with $13 billion in assets under care, is competitive with other regional bank wealth management operations.
• The merger aims to create a stronger competitor in the Midwest, Southwest, and Florida markets, similar to other recent bank mergers focused on regional expansion.

Stakeholder Impact

• Shareholders will benefit from the potential synergies and increased value of the combined company.
• Employees will have opportunities for growth and development within a larger organization.
• Customers will gain access to a wider range of products and services and an expanded branch network.
• Communities will benefit from the combined company's commitment to local involvement and support.

Next Steps

• Obtain regulatory and shareholder approvals.
• Complete the merger of the holding companies in the first or second quarter of 2025.
• Complete the merger of the banks in mid-2025.
• Integrate the two companies' systems and operations.
• Communicate updates to customers regarding the transition.

Key Dates