Busey Bank’s holding company First Busey has agreed to merge with CrossFirst Bankshares, the holding company for CrossFirst Bank, in an all-stock deal valued at around $916.8m.
As per the terms of the definitive agreement, shareholders of CrossFirst Bankshares will receive 0.6675 shares of First Busey common stock for each share held of CrossFirst Bankshares common stock.
Upon completion of the merger, shareholders of CrossFirst Bankshares, who currently do not receive dividends, will become eligible to receive First Busey’s ongoing dividends as declared.
The merger is expected to create a premier full-service commercial bank, serving clients from 77 full-service locations across 10 states. It will have about $20bn in total assets, around $17bn in total deposits, and nearly $13bn in wealth management assets under care.
Through the merger, First Busey aims to expand its regional operating model in the high-growth metro markets of Kansas City, Wichita, Dallas/Fort Worth, Denver and Phoenix.
The company also intends to strengthen its commercial banking relationships and offer additional opportunities to grow its wealth management business.
Besides, the merger is aimed at bolstering First Busey’s payment technology solutions subsidiary FirsTech. The newly formed company is also expected to further strengthen its commitment and extensive skill set in commercial banking.
First Busey chairman and CEO Van Dukeman said: “CrossFirst is a natural fit alongside Busey’s established commercial and wealth management offerings and our payment technology solutions business, FirsTech, Inc.
“By leveraging CrossFirst’s established presence in attractive markets with compelling growth potential, this partnership is expected to serve as a catalyst for additional commercial banking growth as well as expanded opportunities to grow our existing wealth management and payments businesses.”
Following the closing of the merger, shareholders of First Busey will own approximately 63.5% of the combined company and CrossFirst Bankshares’ shareholders will hold the remaining 36.5%.
The merged entity will continue to trade on the Nasdaq. It will operate under the First Busey brand.
CrossFirst Bank is anticipated to be merged with and into Busey Bank by mid-2025.
CrossFirst Bankshares CEO, president and director Mike Maddox said: “Founded on the ideals of extraordinary, personal service provided by outstanding, local bankers, our dedicated associates at CrossFirst have built strong, trusting relationships with our clients and the markets we serve.
“We believe Busey is the right partner to continue CrossFirst’s customer- and community-focus.”
Subject to customary conditions, including First Busey and CrossFirst Bankshares shareholders’ approval and regulatory approvals, the merger is expected to be completed in Q1 or Q2 2025.
For the transaction, Raymond James & Associates served as financial adviser and Sullivan & Cromwell was legal counsel to First Busey.
Keefe, Bruyette & Woods, on the other hand, was the financial adviser to CrossFirst Bankshares, while Squire Patton Boggs (US) served as the legal counsel.
