Shareholders of First Busey, the parent company of Busey Bank, and CrossFirst Bankshares, the holding company for CrossFirst Bank, have approved the proposed $917m merger of the two companies.
The shareholder votes mark a major step towards completing the transaction.
Following the shareholder approval, the merger is expected to be completed in Q1 or Q2 2025, pending regulatory clearance and other customary conditions.
First Busey chairman and CEO Van Dukeman said: “This approval reflects our shareholders’ confidence in this compelling merger that will create significant upside for our associates, customers, communities and shareholders.
“The next step is receiving the required regulatory approvals, followed by the closing of the merger of the holding companies and successful integration of these two premier franchises.”
Under the terms of the definitive agreement signed in August 2024, CrossFirst Bankshares shareholders will receive 0.6675 shares of First Busey common stock for each CrossFirst Bankshares share they own.
Following the merger, First Busey shareholders will own approximately 63.5% of the combined company, while CrossFirst Bankshares shareholders will hold the remaining 36.5%.
The merged entity will continue to operate under the First Busey brand and trade on the Nasdaq stock exchange.
CrossFirst CEO president and director Mike Maddox said: “These meetings demonstrate the high level of certainty shareholders have in the value of our combined company.
“It also underscores their support of our strategic rationale and the financial benefits of the merger.”
Through the merger, the new entity is expected to become a premier full-service commercial bank, operating from 77 locations across 10 states.
The merged organisation will have total assets of around $20bn, $17bn in deposits, $15bn in loans, and $14bn in wealth assets under management.
The increased scale is expected to enhance business capabilities through expanded customer and product channels, supported by a diversified client, loan, and deposit base.
Besides, the combination of complementary business models is anticipated to drive significant financial benefits.
The combined capital strength and increased economies of scale are expected to improve key performance metrics, including net interest margin and operational efficiency.
Additionally, CrossFirst Bank is expected to merge with and into Busey Bank by mid-2025.
