First Busey Acquires M&M Bank

First Busey Corporation (NASDAQ: BUSE) has finalized its acquisition of Merchants and Manufacturers Bank Corporation (M&M) and Merchants and Manufacturers Bank, effective April 1, 2024. The total consideration for the acquisition consists of approximately $12.2 million in cash and 1,429,324 shares of Busey common stock.

As of December 31, 2023, M&M Bank had total consolidated assets of $0.5 billion, total loans of $0.4 billion, and total deposits of $0.4 billion. After the acquisition, the combined pro forma franchise will have assets worth $12.8 billion, $8.1 billion in loans, and $10.7 billion in deposits.

Busey will operate M&M Bank as a separate banking subsidiary until it is merged with Busey Bank, which is expected to occur in June 2024. At that time, M&M Bank's banking offices will become part of Busey, with the exception of the banking office located at 990 Essington Rd., Joliet, Illinois, which is expected to be closed.

The combined pro forma organization will serve customers through 62 full-service locations, including 21 in central Illinois markets, 17 in suburban Chicago markets, 20 in the St. Louis metropolitan area, one in Indianapolis, and three in southwest Florida.

Through this transaction, Busey's deposit share ranking in Dupage and Will counties improves to #4, while its share in the Chicago MSA improves to #8. Additionally, this partnership solidifies Busey Bank’s position as #13 in total deposit market share across the state of Illinois and #4 in deposit share for banks headquartered in Illinois.

Busey's wealth management division will also benefit from the acquisition, as the combined organization had $12.1 billion in wealth assets under care as of December 31, 2023.

Busey Chairman, President, and CEO Van A. Dukeman emphasized the partnership's potential to enhance the company's existing deposit, commercial banking, and wealth management presence in the Chicago-Naperville-Elgin, IL-IN-WI Metropolitan Statistical Area (MSA).

M&M Bank, founded in 1969, brings its expertise in business banking to the partnership. As of December 31, 2023, M&M Bank had been actively involved in the communities it serves and provided unparalleled service delivered by experienced local professionals.

Both companies have highlighted their commitment to building a premier, service-oriented, community banking experience and supporting an engaged and empowered workforce.

Barack Ferrazzano Kirschbaum & Nagelberg LLP served as legal counsel to Busey, while Arentfox Schiff LLP served as legal counsel and Keefe, Bruyette & Woods, Inc., a Stifel company, served as financial advisor to M&M.

First Busey Corporation, as of December 31, 2023, was a $12.28 billion financial holding company headquartered in Champaign, Illinois. Busey Bank, a wholly-owned bank subsidiary of First Busey Corporation, had total assets of $12.25 billion as of December 31, 2023.

The acquisition enhances Busey's presence and capabilities in various markets, solidifying its position as a leading community bank with an extensive service center footprint across Illinois, Missouri, Florida, and Indiana. Today the company's shares have moved -2.3% to a price of $23.49. Check out the company's full 8-K submission here.

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