First Busey Corporation (NASDAQ: BUSE) has received approval from the Federal Reserve to acquire CrossFirst Bankshares, Inc. This acquisition has been described as "transformational" and will expand Busey’s regional operating model in high-growth metro markets like Kansas City, Wichita, Dallas/Fort Worth, Denver, Phoenix, and more.
As of September 30, 2024, First Busey Corporation was an $11.99 billion financial holding company. Busey Bank, a wholly-owned bank subsidiary of First Busey Corporation, had total assets of $11.95 billion as of the same date. Busey Bank currently operates 62 banking centers across various markets.
The combined company resulting from the acquisition is expected to have approximately $20 billion in total assets, $17 billion in total deposits, $15 billion in total loans, and $14 billion in wealth assets under care. This will create a premier full-service commercial bank serving clients from 77 full-service locations across 10 states.
The acquisition is anticipated 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.
The transaction is also expected to significantly enhance key performance metrics. Specific improvements mentioned include net interest margin and efficiency, driving increased profitability and returns to shareholders.
This acquisition is poised to bring about meaningful changes and growth for both First Busey Corporation and CrossFirst Bankshares, Inc., paving the way for a stronger, more diversified financial institution. As a result of these announcements, the company's shares have moved 1.2% on the market, and are now trading at a price of $23.13. For more information, read the company's full 8-K submission here.
