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

First Busey Corporation and CrossFirst Bankshares have announced a merger agreement that will create a premier Busey-branded bank with approximately $20 billion in combined assets.

Summary

• First Busey Corporation and CrossFirst Bankshares have entered into a merger agreement.
• The merger will create a full-service bank with approximately $20 billion in combined assets.
• The combined company will operate under the First Busey Corporation and Busey Bank names.
• Busey Bank's headquarters will remain in Champaign, IL.
• The holding companies are expected to merge in the first or second quarter of 2025.
• The banks are expected to merge in mid-2025.
• The integrated franchise will be led by a combined team of leaders from both organizations.
• Customers should expect the same relationship managers moving forward.
• Busey and CrossFirst will remain separate and independent until legally merged.

Sentiment

Score: 7

Explanation: The document conveys a positive outlook on the merger, emphasizing benefits for customers, employees, and communities. However, it also includes standard disclaimers about risks and uncertainties associated with forward-looking statements, which tempers the overall sentiment.

Positives

• The merger will expand Busey's footprint into growing metro areas.
• The combined company will have a stronger presence in the market.
• Customers will retain their existing relationship managers.
• The merger is expected to create benefits for teams, customers, and communities.
• The combined company will have approximately $20 billion in assets and 77 locations across 10 states.

Risks

• The merger is subject to customary closing conditions, including regulatory and other required approvals.
• The anticipated benefits of the proposed transaction may not be realized.
• Integration of the two companies may be difficult, time-consuming, or costly.
• Revenues following the proposed transaction may be lower than expected.
• The merger could be terminated if certain events occur.
• The outcome of any legal proceedings that may be instituted against Busey or CrossFirst could impact the merger.
• The companies may be unable to achieve expected synergies and operating efficiencies in the merger within the expected timeframes or at all.
• The dilution caused by Busey's issuance of additional shares of its capital stock in connection with the proposed transaction.

Future Outlook

The combined companies expect to operate as First Busey Corporation and Busey Bank, with Busey Bank's headquarters remaining in Champaign, IL. The integrated franchise will be led by a combined team of leaders from both organizations.

Management Comments

• Van Dukeman, Chairman & CEO of First Busey Corporation and Busey Bank, stated that the partnership will allow them to enhance and expand their service.
• Van Dukeman expressed confidence that they found an exceptional partner to continue their customerand community-focused brand of banking on an even stronger scale.

Industry Context

The banking industry is experiencing consolidation as institutions seek to increase scale and expand their geographic footprint. This merger reflects that trend.

Comparison to Industry Standards

• The combined assets of $20 billion would place the merged entity among the larger regional banks in the US.
• Comparable mergers in the banking sector often involve similar motivations of expanding market presence and achieving economies of scale.
• Other regional banks such as Fifth Third Bancorp and KeyCorp have also pursued growth through acquisitions.

Stakeholder Impact

• Shareholders of both companies will be impacted by the merger and will need to vote on the transaction.
• Employees of both companies may experience changes as a result of the integration.
• Customers of both banks are assured that they will retain their existing relationship managers.
• The merger is expected to benefit the communities served by both banks.

Next Steps

• Obtain regulatory and stockholder 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 operations of CrossFirst into Busey.

Key Dates