Busey Corporation Moves Forward with CrossFirst Acquisition

Busey Corporation Successfully Secures Acquisition Approval

First Busey Corporation (NASDAQ: BUSE), the parent entity of Busey Bank, has achieved a significant milestone by obtaining the Federal Reserve's approval to acquire CrossFirst Bankshares, Inc. (NASDAQ: CFB). This acquisition is set to enhance Busey's footprint in various growing metropolitan areas such as Kansas City, Wichita, Dallas/Fort Worth, Denver, and Phoenix.

Strategic Growth Through Acquisition

Following the approval from shareholders, the merger is scheduled to close in early 2025, pending standard closing conditions. This merger, as highlighted by Busey Chairman and CEO Van Dukeman, represents an important step in the company’s transformative journey. Busey aims to integrate CrossFirst Bank, which is characterized by its solid fundamentals. With a current P/E ratio of 9.86 and a company valuation of $729 million, CrossFirst is trading below its fair value, signaling potential upside from this merger.

Strong Financial Performance

CrossFirst Bank has shown impressive revenue growth of 7.66% and maintains a good financial health score according to analytics. This acquisition is not just about numbers but also about enhancing community ties and customer service experience across their combined markets.

Integration Plans and Customer Focus

Initially, CrossFirst Bank will function as a separate subsidiary, with a full integration planned for late 2025. The strategy includes transitioning CrossFirst branches into Busey Bank locations, which aims to provide a seamless banking experience for customers.

Enhancing Banking Services

The collaboration is expected to boost Busey's commercial banking relations and expand its wealth management services, while also enhancing the capabilities of its payment technology solutions subsidiary, FirsTech, Inc. After the merger, the newly formed entity will operate out of 77 full-service locations across ten states, aggregating approximately $20 billion in assets. This includes $17 billion in deposits and $15 billion in loans.

Upcoming Financial Synergies

Financial analysts have shown optimism regarding the merger, with two analysts recently upgrading earnings estimates for CrossFirst. The combination will enhance operational metrics, leading to improved net interest margins and increased efficiency, ultimately benefiting shareholders with better returns.

Recognition in the Banking Industry

First Busey Corporation has been acknowledged by Forbes as one of the World's Best Banks for 2024. With a total asset valuation of $11.99 billion, Busey Bank operates 62 banking centers and continues to strive for excellence in customer service.

Recent Developments Amidst the Merger

CrossFirst Bankshares, Inc. has made adjustments to its Annual Incentive Plan in light of the upcoming merger, laying the groundwork for new performance metrics that will become effective post-acquisition. The merger agreement has been officially sanctioned by both companies' shareholders, reflecting a mutual commitment to realizing the potential advantages of this strategic alliance.

Focused on Community Values

The CEOs of both firms have expressed a shared vision for strengthening the delivery of financial services while upholding community banking principles. This merger not only highlights the impressive financial performance of CrossFirst, including a substantial revenue growth, but also underscores the importance of maintaining customer-centric practices throughout the transition process.

Frequently Asked Questions

What is the main objective of Busey's acquisition of CrossFirst?

The primary goal is to expand Busey’s presence in key metropolitan markets and enhance service capabilities in commercial banking and wealth management.

When is the merger expected to be finalized?

The merger is anticipated to close in early 2025, contingent upon regulatory approvals and customary closing conditions.

How will customers of CrossFirst Bank be affected?

Initially, CrossFirst Bank will operate as a subsidiary of Busey, with full integration planned for late 2025, affecting branch locations and customer services positively.

What kind of financial performance has CrossFirst shown?

CrossFirst Bank has reported a revenue growth of 7.66%, indicating a healthy financial outlook, which is appealing in the context of this merger.

How many states will the combined entity operate in?

The merger will result in operations across ten states with 77 full-service branches, significantly enhancing accessibility for customers.

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