*Update - All approvals received. CFB shareholders to receive 0.6675 shares of BUSE for every share owned.
CFB shares to be delisted from trading after 8PM EST on Friday February 28th. The combined entity to begin trading Monday, March 3rd.
The banking industry is witnessing yet another major consolidation as First Busey Corporation (NASDAQ: BUSE) and CrossFirst Bankshares, Inc. (NASDAQ: CFB) enter into an all-stock merger deal valued at approximately $916.8 million. The transaction, expected to be finalized in late 2024, will create a full-service commercial bank with a strong presence across ten states, $20 billion in total assets, and a robust lending and wealth management portfolio.
Let’s dive into the key details of the First Busey-CrossFirst merger, its expected impact on stakeholders, and what it means for the future of regional banking.
Key Details of the First Busey & CrossFirst Merger
Structure of the Deal
The agreement, signed on August 26, 2024, states that CrossFirst will merge into First Busey in an all-stock transaction. Under the merger agreement:
CrossFirst shareholders will receive 0.6675 shares of First Busey common stock for each CrossFirst share they own.
This represents a value of approximately $18.28 per CrossFirst share, based on First Busey’s stock price at the time of the announcement.
The total merger consideration is $916.8 million.
Bank Merger & Organizational Changes
Following the holding company merger, CrossFirst Bank (Kansas) will merge into Busey Bank (Illinois). The newly combined bank will have:
77 full-service locations across ten states
$17 billion in total deposits
$15 billion in total loans
$13 billion in wealth assets under care
Shareholder Impact & Voting
Both First Busey and CrossFirst shareholders are required to approve the merger agreement.
First Busey shareholders will own 63.5% of the combined entity, while CrossFirst shareholders will own 36.5%.
Shareholders of both companies are scheduled to vote on the merger at special meetings on December 20, 2024.
Strategic Rationale & Growth Potential
The merger is expected to create a powerhouse in commercial banking, combining the strengths of both institutions:
Expanded Market Reach – The combined bank will operate in key growth markets across the Midwest and South.
Stronger Lending Portfolio – The deal will bolster business lending capabilities, offering more capital to small and mid-sized enterprises (SMEs).
Enhanced Wealth Management Services – The new entity will manage $13 billion in wealth assets, providing more investment solutions for high-net-worth clients.
Cost Synergies & Efficiency Gains – First Busey expects to realize significant operational efficiencies and cost savings post-merger.
What Does This Merger Mean for Customers & Employees?
For Customers:
Customers can expect expanded financial services, a larger ATM network, and improved digital banking options. Both banks have emphasized a commitment to customer experience during and after the transition.
For Employees:
While mergers often lead to consolidation and job redundancies, the companies have yet to announce specific workforce impacts. However, both CEOs have expressed a commitment to retaining key talent and ensuring a smooth integration.
Potential Risks & Challenges
While the merger presents many opportunities, there are potential risks:
Regulatory Approval – The merger must receive approval from the Federal Reserve and other regulatory bodies.
Integration Challenges – Combining two banking entities of this size can create operational hurdles.
Stock Price Fluctuations – Since it’s an all-stock transaction, the final value for CrossFirst shareholders will depend on First Busey’s stock price at closing.
Final Thoughts: A Game-Changer for Regional Banking
The First Busey-CrossFirst merger is a significant step toward regional banking consolidation, creating a financial institution with stronger lending power, an expanded geographic footprint, and enhanced customer services. If executed successfully, this deal will position the combined bank as a leading commercial and wealth management institution in the Midwest and South.
As the December 20, 2024 shareholder meetings approach, investors and stakeholders will closely watch how the deal progresses. Will this merger deliver on its promises of growth and efficiency? Only time will tell.
Frequently Asked Questions (FAQs)
When will the First Busey-CrossFirst merger be completed?
The merger is expected to be finalized in the first quarter 2025. (UPDATE - Closing February 28th, combined entity to begin trading Monday March 3rd).
What happens to CrossFirst Bank?
CrossFirst Bank will be merged into Busey Bank, forming a larger financial institution.
Will CrossFirst shareholders receive cash?
No, this is an all-stock merger. Shareholders will receive 0.6675 shares of First Busey common stock for each CrossFirst share.
Will there be any branch closures?
The banks have not announced any specific closures yet, but some locations may be consolidated for efficiency.
CFB, BUSE Merger
CFB, BUSE Merger
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