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First Busey, CrossFirst shareholders approve merger

Published 12/23/2024, 10:06 PM
CFB
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CHAMPAIGN, Ill. and LEAWOOD, Kan. - Shareholders of First Busey (NASDAQ:BUSE) Corporation (NASDAQ:BUSE) and CrossFirst Bankshares, Inc. (NASDAQ:CFB) have given their nod to a merger agreement, the companies announced on Monday. The approval, an important step towards completing the transaction, came during special shareholder meetings held last Friday. According to InvestingPro data, CrossFirst currently maintains a healthy financial position with an overall health score of GOOD, suggesting strong fundamentals heading into this merger.

Van Dukeman, Chairman and CEO of First Busey, expressed that the shareholders' overwhelming support signifies confidence in the merger's potential benefits for stakeholders. According to Dukeman, the focus post-merger will be on enhancing financial services while preserving community bank values. CrossFirst's current market capitalization stands at $765 million, with InvestingPro analysis indicating the stock is currently trading below its Fair Value, presenting potential upside opportunity. For deeper insights, investors can access comprehensive valuation metrics and additional ProTips through InvestingPro's detailed research reports.

Mike Maddox, CEO, President, and Director of CrossFirst, echoed the sentiment, highlighting the shareholders' belief in the strategic and financial benefits of the union. Maddox looks forward to the fusion of two customer-centric financial institutions.

The merger is anticipated to close in the first or second quarter of 2025, pending the satisfaction of remaining customary closing conditions, including regulatory approvals. Once completed, the combined entity will operate 77 full-service locations across 10 states, boasting approximately $20 billion in total assets, $17 billion in total deposits, $15 billion in total loans, and $14 billion in wealth assets under care.

The companies expect the merger to enhance performance metrics significantly, with improvements in net interest margin and efficiency that should drive profitability and shareholder returns. CrossFirst has demonstrated solid financial performance with a revenue growth of 7.66% and maintains a conservative P/E ratio of 10.52, suggesting room for potential value creation post-merger.

First Busey Corporation, as of September 30, 2024, is a financial holding company with $11.99 billion in assets, while CrossFirst Bankshares, Inc., is a registered bank holding company for CrossFirst Bank, which serves a variety of markets across several states.

This merger is based on a press release statement and remains subject to the customary closing conditions and the receipt of required regulatory approvals.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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