CHAMPAIGN, Ill. - First Busey (NASDAQ:BUSE) Corporation (NASDAQ: BUSE), the parent company of Busey Bank, has received the Federal Reserve's approval to proceed with the acquisition of CrossFirst Bankshares, Inc. (NASDAQ: NASDAQ:CFB), the holding company for CrossFirst Bank. Following shareholder approval on December 20, 2024, the merger is anticipated to close on March 1, 2025, contingent upon customary closing conditions and approval from the Illinois Department of Financial and Professional Regulation. CrossFirst, currently trading at a P/E ratio of 9.86 and valued at $729 million, is trading below its InvestingPro Fair Value, suggesting potential upside in the deal.
The strategic move aims to expand Busey's presence in high-growth metropolitan markets including Kansas City, Wichita, Dallas/Fort Worth, Denver, and Phoenix. "This is another significant milestone in completing this transformational business combination," said Van Dukeman, Busey Chairman and CEO. CrossFirst brings solid fundamentals to the deal, with revenue growth of 7.66% and an overall Financial Health score of "GOOD" according to InvestingPro analysis. Subscribers can access 6 additional ProTips and comprehensive valuation metrics for both companies.
CrossFirst Bank will initially operate as a separate subsidiary until the planned full integration with Busey Bank, expected in late June 2025. This will result in CrossFirst Bank's branches transitioning to Busey Bank locations.
Mike Maddox, CEO, President, and Director of CrossFirst, expressed confidence in the cultural and customer service alignment between the two companies, which he believes will benefit teams, customers, and communities alike.
The partnership is poised to strengthen Busey's commercial banking relationships and wealth management business, as well as expand the reach of its payment technology solutions subsidiary, FirsTech, Inc. The combined entity will serve clients from 77 full-service locations across 10 states, boasting assets of approximately $20 billion, $17 billion in deposits, $15 billion in loans, and $14 billion in wealth assets under care. With two analysts recently revising earnings estimates upward for CrossFirst, the merger's timing appears favorable. Access detailed merger analysis and financial projections through InvestingPro's comprehensive research reports, available for over 1,400 US stocks.
The merger is expected to enhance performance metrics significantly, improving net interest margin and efficiency, which in turn should boost profitability and shareholder returns.
First Busey Corporation, headquartered in Champaign, Illinois, had total assets of $11.99 billion as of September 30, 2024. Busey Bank operates 62 banking centers across various regions. The company has recently been recognized by Forbes among the World's Best Banks for 2024 and America's Best Banks.
CrossFirst Bankshares, Inc., based in Leawood, Kansas, serves a diverse clientele through its full-service financial institution, CrossFirst Bank, which operates in multiple states.
This article is based on a press release statement.
In other recent news, CrossFirst Bankshares, Inc. has amended its Annual Incentive Plan (AIP) following its announced merger with First Busey Corporation, according to a recent SEC filing. The updated AIP, applicable to certain officers, introduces a new structure for assessing performance goals if a Change in Control occurs during a performance period. Post-merger, the surviving corporation will establish new performance goals for the remainder of the performance period.
These revisions are part of the broader merger process with Busey, which is anticipated to create synergies and cost savings. Shareholders of both First Busey Corporation and CrossFirst Bankshares, Inc. have approved the merger agreement, marking an important step towards finalizing the transaction.
The CEOs of both companies have expressed confidence in the merger's potential benefits, focusing on enhancing financial services while preserving community bank values. The merger, expected to close in 2025, will result in a combined entity operating across 10 states with approximately $20 billion in total assets. This recent development comes amid CrossFirst's strong financial performance, showcasing a revenue growth of 7.66%.
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