8-K: First Busey Corporation Completes $207.5 Million Depositary Share Offering

First Busey Corporation successfully closes its underwritten public offering of depositary shares, raising approximately $207.5 million after expenses.

Summary

• First Busey Corporation (Busey) has closed its previously announced underwritten public offering of 8,600,000 depositary shares.
• The offering included the partial exercise of the underwriters' over-allotment option for 600,000 depositary shares.
• Each depositary share represents a 1/40th ownership interest in a share of Busey's 8.25% Fixed Rate Series B Non-Cumulative Perpetual Preferred Stock.
• The liquidation preference is $1,000 per share of preferred stock, equivalent to $25.00 per depositary share.
• Busey received net proceeds of approximately $207,477,500 after deducting estimated expenses, underwriting discounts, and commissions.
• Piper Sandler & Co., Morgan Stanley & Co. LLC, and Keefe, Bruyette & Woods, Inc. served as joint bookrunning managers for the offering.
• Janney Montgomery Scott LLC acted as the co-manager.
• The offering was made via a prospectus supplement and accompanying prospectus, previously filed with the SEC.
• As of March 31, 2025, First Busey Corporation was a $19.46 billion financial holding company.
• Busey Bank had total assets of $11.98 billion as of March 31, 2025, with 62 banking centers.
• CrossFirst Bank had total assets of $7.45 billion as of March 31, 2025, with 16 banking centers.
• It is anticipated that CrossFirst Bank will be merged with and into Busey Bank on June 20, 2025.
• Busey's Wealth Management division had assets under care totaling $13.68 billion as of March 31, 2025.
• FirsTech, Inc., a wholly-owned subsidiary, specializes in payment technology solutions.
• Busey was named among 2025's America's Best Banks by Forbes and received other workplace awards.

Sentiment

Score: 7

Explanation: The sentiment is moderately positive. The successful closing of the offering is a positive development, but the press release also includes standard risk disclosures.

Positives

• Successful completion of the depositary share offering strengthens Busey's capital position.
• The offering was upsized due to the partial exercise of the underwriters' over-allotment option, indicating strong investor demand.
• The company received multiple awards for being a good place to work, which can help attract and retain talent.

Risks

• The press release contains a comprehensive list of risk factors that could affect Busey's financial performance, including economic conditions, regulatory changes, competition, and cybersecurity threats.
• The forward-looking statements are subject to various risks and uncertainties, meaning actual results could differ materially.

Future Outlook

The press release includes forward-looking statements about Busey's financial condition, results of operations, plans, and business, but these are subject to various risks and uncertainties.

Industry Context

The issuance of preferred stock is a common method for banks to raise capital and improve their regulatory capital ratios. This offering allows Busey to bolster its capital base and support future growth initiatives.

Comparison to Industry Standards

• Comparing Busey's offering to similar preferred stock issuances by regional banks, the 8.25% fixed rate is within the typical range for such securities in the current interest rate environment.
• Companies like Fifth Third Bancorp and Regions Financial Corporation have issued similar preferred shares to manage their capital structure.
• The size of the offering, $207.5 million, is also comparable to other regional banks of similar asset size.

Stakeholder Impact

• Shareholders: The offering could dilute existing shareholders, but it also strengthens the company's capital position, which could support future growth and profitability.
• Customers: The strengthened capital position could allow Busey to offer more competitive products and services.
• Employees: A healthy capital base supports the long-term stability of the company and job security.

Next Steps

• The proceeds from the offering will likely be used for general corporate purposes, which may include supporting organic growth, acquisitions, or other strategic initiatives.
• The anticipated merger of CrossFirst Bank with Busey Bank on June 20, 2025, is a key upcoming event.

Key Dates

Keywords

depositary shares, preferred stock, public offering, First Busey Corporation, Busey, CrossFirst Bank, FirsTech, capital raise, banking