CrossFirst Bankshares Acquired by First Busey Corporation

By Tamara Parker • Friday, January 17 15:41 • Permanent Link

First Busey Corporation, the holding company for Busey Bank, has received approval from the Federal Reserve to acquire CrossFirst Bankshares, Inc., the holding company for CrossFirst Bank. Shareholder approval for the transaction was obtained on December 20, 2024. The holding company merger is set to be closed on March 1, 2025, subject to the satisfaction of remaining customary closing conditions.

The combined company is expected to create a premier full-service commercial bank serving clients from 77 full-service locations across 10 states with combined total assets of approximately $20 billion, $17 billion in total deposits, $15 billion in total loans, and $14 billion in wealth assets under care. The scale of the combined company provides opportunities to augment business models through new customer and product channels.

The partnership is expected to bolster Busey’s commercial banking relationships and offer additional opportunities to grow its wealth management business and its payment technology solutions subsidiary, Firstech, Inc., in new, growing markets.

As of September 30, 2024, First Busey Corporation was an $11.99 billion financial holding company with Busey Bank having total assets of $11.95 billion. Busey Bank had 62 banking centers located in various markets. The wealth management division of Busey provides a full range of asset management, investment, brokerage, fiduciary, philanthropic advisory, tax preparation, and farm management services to individuals, businesses, and foundations, with assets under care totaling $13.69 billion as of September 30, 2024.

Additionally, Firstech, a wholly-owned subsidiary of Busey Bank, specializes in providing comprehensive and innovative payment technology solutions to small and medium-sized businesses, highly regulated enterprise industries, and financial institutions.

The partnership with CrossFirst is expected to significantly enhance key performance metrics with meaningful improvements in net interest margin and efficiency, driving increased profitability and returns to shareholders. As a result of these announcements, the company's shares have moved 2.7% on the market, and are now trading at a price of $15.2. For the full picture, make sure to review CrossFirst Bankshares's 8-K report.

The above analysis is intended for educational purposes only and was performed on the basis of publicly available data. It is not to be construed as a recommendation to buy or sell any security. Any buy, sell, or other recommendations mentioned in the article are direct quotations of consensus recommendations from the analysts covering the stock, and do not represent the opinions of Market Inference or its writers. Past performance, accounting data, and inferences about market position and corporate valuation are not reliable indicators of future price movements. Market Inference does not provide financial advice. Investors should conduct their own review and analysis of any company of interest before making an investment decision.