Regional lender First Busey to buy CrossFirst in latest consolidation
Adds shares in paragraph 6 and analyst comment in paragraph 10
By Arasu Kannagi Basil
Aug 27 (Reuters) -Regional lender First Busey BUSE.O has agreed to buy smaller rival CrossFirst Bankshares CFB.O in a $916.8 million all-stock deal, in yet another consolidation in the industry since the March 2023 turmoil after three banks collapsed last year.
U.S. regional lenders have been under immense pressure as elevated interest rates have dampened borrowing and increased competition for deposits, forcing the banks to scale up and diversify.
The deal would create a combined bank with $20 billion in total assets and expand Busey's presence into new markets including Kansas City, Wichita, Dallas/Fort Worth, Denver and Phoenix, the banks said on Tuesday.
On Tuesday, Old Second Bancorp OSBC.O also said it would buy five Illinois branches from lender First Merchants FRME.O, bolstering its Southeast Chicago presence.
CrossFirst shareholders will receive 0.6675 shares of Busey for each stock held, valuing the lender at $18.28 each, representing a 0.3% discount to the closing price.
Shares of both Busey and CrossFirst fell over 1% in early trading.
The deal, expected to close in the first or the second quarter of 2025, will likely boost Busey's earnings by 20% in 2026, the bank said.
"CrossFirst is a natural fit alongside Busey's established commercial and wealth management offerings and our payment technology solutions business," Busey CEO Van Dukeman said.
Busey's wealth management division, which provides asset management, investment, and brokerage services, has about $13 billion assets under care.
The ability to use Busey's low-cost deposits to fund commercial growth in CrossFirst's markets, and leveraging Busey's established wealth management platform should provide revenue upside, Stephens analyst Terry McEvoy said.
Illinois-based Busey had $11.97 billion in assets, while Kansas-based CrossFirst had $7.6 billion, as of June 30.
The companies have agreed upon a $36.7 million termination fee if the deal fails under certain circumstances.
Reporting by Arasu Kannagi Basil in Bengaluru; Editing by Shinjini Ganguli
免責聲明: XM Group提供線上交易平台的登入和執行服務,允許個人查看和/或使用網站所提供的內容,但不進行任何更改或擴展其服務和訪問權限,並受以下條款與條例約束:(i)條款與條例;(ii)風險提示;(iii)完全免責聲明。網站內部所提供的所有資訊,僅限於一般資訊用途。請注意,我們所有的線上交易平台內容並不構成,也不被視為進入金融市場交易的邀約或邀請 。金融市場交易會對您的投資帶來重大風險。
所有缐上交易平台所發佈的資料,僅適用於教育/資訊類用途,不包含也不應被視爲適用於金融、投資稅或交易相關諮詢和建議,或是交易價格紀錄,或是任何金融商品或非應邀途徑的金融相關優惠的交易邀約或邀請。
本網站的所有XM和第三方所提供的内容,包括意見、新聞、研究、分析、價格其他資訊和第三方網站鏈接,皆爲‘按原狀’,並作爲一般市場評論所提供,而非投資建議。請理解和接受,所有被歸類為投資研究範圍的相關内容,並非爲了促進投資研究獨立性,而根據法律要求所編寫,而是被視爲符合營銷傳播相關法律與法規所編寫的内容。請確保您已詳讀並完全理解我們的非獨立投資研究提示和風險提示資訊,相關詳情請點擊 這裡查看。