News Summary
Busey Bank is set to merge with CrossFirst Bankshares, enhancing its banking presence across six new states, including Arizona. The merger, expected to finalize in 2025, will bring significant changes in leadership and strategic operations, as Busey aims to expand its commercial banking and wealth management services. The deal is projected to boost earnings substantially despite a recent net loss, with the integration focusing on streamlining operations and improving customer experience.
Arizona is set to welcome significant changes in its banking landscape as Busey Bank announces its upcoming merger with CrossFirst Bankshares, Inc. The merger is expected to finalize in the first half of 2025, paving the way for Busey’s expansion into six new states, including key markets such as Denver, Dallas, and Phoenix. The merger will enhance Busey’s presence in the commercial banking sector and wealth management opportunities across these newly acquired areas.
Busey Bank has confirmed that it will retain its name following the merger, with its banking headquarters remaining in Illinois. However, the holding company will be relocating to the Kansas City area. Following the merger, Busey’s CEO, Van Dukeman, will transition to serve as the executive chair and CEO of the holding company, while CrossFirst’s CEO, Mike Maddox, will assume the positions of president and executive vice chair of the holding company and CEO of Busey Bank.
The merger underscores a strategic alignment between the two banks, leveraging CrossFirst’s established markets with promising growth potential. Busey aims to strengthen its commercial banking growth and expand robust opportunities in wealth management and payments. Busey shareholders will possess 63.5% of the combined entity, while CrossFirst shareholders will hold 36.5%.
The governing board of the merged company will consist of 13 members, with eight from Busey and five from CrossFirst. CrossFirst shareholders will receive 0.6675 shares of Busey common stock for each share of CrossFirst they own. The merger transaction is based on Busey’s closing stock price of $27.39. Notably, CrossFirst shareholders will not receive dividends until the merger is complete, but they will become eligible for Busey dividends thereafter.
Busey is expecting approximately 20% earnings per share accretion in 2026, excluding any one-time charges related to the merger. This merger is projected to enhance Busey’s reach in commercial banking and wealth management across a total of 10 states, including Arizona.
Following the merger, key executives from both banks will retain their roles to ensure a smooth transition. Randy Rapp, currently president of CrossFirst Bank, will take on the role of president at Busey Bank. Chip Jorstad from Busey will serve as chief credit officer, and Amy Fauss from CrossFirst will step in as chief information and technology officer. Other Busey executives, such as the Chief Financial Officer, Chief Operating Officer, Chief Risk Officer, and General Counsel, will also maintain their positions post-merger.
The operational integration of CrossFirst Bank into Busey Bank is projected to be completed around June 20, 2025. As of March 31, 2025, Busey reported total assets of $19.46 billion, a significant increase from $12.05 billion recorded at the end of December 2024. Additionally, Busey observed substantial growth in portfolio loans, totaling $13.87 billion, indicating strong commercial loan performance.
Despite these promising developments, Busey faced a net loss of $30 million during the first quarter of 2025, partly due to expenditures tied to the acquisition. Nevertheless, Busey’s total deposits surged to $16.46 billion by March 31, 2025, reflecting positive growth attributed to CrossFirst’s operations.
The merger aims to foster a more efficient banking experience for associates, customers, communities, and shareholders alike, positioning Busey Bank to better meet the needs of its growing clientele in Arizona and beyond.
Deeper Dive: News & Info About This Topic
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- GlobeNewswire: Busey First Quarter Results
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