10:59 AM EDT, 08/27/2024 (MT Newswires) -- CrossFirst Bankshares ( CFB ) agreed to merge with First Busey ( BUSE ) in an all-stock deal valued at roughly $916.8 million, the lenders said in a joint Tuesday statement.

Under the terms of the deal, investors of CrossFirst will receive 0.6675 shares of Busey's stock for each share owned. The value of the transaction is based on Busey's closing share price on Monday. Busey's shares declined 1.8% in Tuesday trading, while CrossFirst was down 2.1%.

The merger, which requires approval from regulators, as well as from the lenders' shareholders, is expected to close during the first or second quarter of 2025. Following completion, Busey shareholders are anticipated to own 63.5% of the merged entity, while CrossFirst stockholders will hold a 36.5% stake. CrossFirst shareholders will be eligible to receive Busey's ongoing dividends as declared following the completion of the deal.

"The partnership between our high-quality franchises is a great fit from a strategic, financial and cultural perspective, and we look forward to capitalizing on the many opportunities we see as a combined company in 2025 and beyond," Busey Chief Executive Van Dukeman said in a statement.

The merger is anticipated to establish a full-service commercial bank with total assets of about $20 billion, $17 billion in deposits, $15 billion in loans and $13 billion in wealth assets under care. The combination is projected to expand Busey's market presence to Arizona, Colorado, Kansas, New Mexico, Oklahoma and Texas and offer the company opportunities to grow its wealth management and payment technology solutions businesses.

The deal is estimated to be about 20% accretive to Busey's earnings on a per-share basis in 2026, with cost savings fully phased in and excluding one-time merger-related charges, the statement said.

The combined banking entity will operate under the Busey brand name. The headquarters of the new holding company, which will continue to operate under the First Busey Corporation ( BUSE ) name, will shift to CrossFirst's current base at Leawood, Kansas. The combined company will continue to trade under the BUSE ticker symbol.

"Because of our like-minded cultures, our complementary business models and manner in which we operate, we are confident this partnership will create significant benefits for our teams, customers, communities and shareholders," CrossFirst CEO Mike Maddox said in the statement.

Dukeman will serve as executive chairman and CEO of the combined company, while Maddox will be the president and executive vice chairman. Maddox will succeed Dukeman as CEO of Busey on the earlier of the one-year anniversary of the bank merger or the 18-month anniversary of the holding company merger, the statement said.

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