First Busey Corporation (“Busey”) (NASDAQ: BUSE), the holding
company for Busey Bank, announced the completion of its acquisition
of Merchants and Manufacturers Bank Corporation (“M&M”), the
holding company for Merchants and Manufacturers Bank (“M&M
Bank”), effective April 1, 2024. The transaction was previously
announced on November 27, 2023.
At the effective time of the merger, each share of M&M
common stock converted to the right to receive, at the election of
each shareholder, and subject to proration and adjustment as
provided in the merger agreement, (i) $117.74 in cash,
(ii) 5.7294 shares of Busey common stock, or (iii) mixed
consideration of $34.55 in cash and 4.0481 shares of Busey common
stock, with total consideration consisting of approximately $12.2
million in cash and 1,429,324 shares of Busey common stock.
Busey will operate M&M Bank as a separate banking subsidiary
of Busey until it is merged with Busey Bank, which is expected to
occur in June 2024. At the time of the bank merger, M&M’s
banking offices will become banking offices of Busey, except for
the banking office located at 990 Essington Rd., Joliet,
Illinois, which is expected to be closed in connection with the
bank merger. The combined pro forma franchise will serve customers
through 62 full-service locations, including 21 in Central Illinois
markets, 17 in suburban Chicago markets, 20 in the St. Louis
metropolitan area, one in Indianapolis and three in Southwest
Florida. The pro forma organization had combined assets of $12.8
billion, $8.1 billion in loans, $10.7 billion in deposits and $12.1
billion in wealth assets under care as of December 31, 2023.
Busey Chairman, President and Chief Executive Officer Van A.
Dukeman said, “Through this partnership, Busey and M&M will
advance our community banking culture through our shared,
longstanding commitments to supporting our associates, customers
and communities. Our combined franchise benefits our clients
through enhanced capabilities and products, including M&M’s
Life Equity Loan® product, while a growing, dynamic organization
presents more professional growth opportunities for
associates.”
The partnership enhances Busey’s existing deposit, commercial
banking and wealth management presence in the
Chicago-Naperville-Elgin, IL-IN-WI Metropolitan Statistical Area
(MSA). Through this transaction, Busey’s deposit share ranking in
DuPage and Will Counties improves to #4 while our share in the
Chicago MSA improves to #8 (based on 2023 FDIC Summary of Deposits
data and excluding large financial institutions with $100 billion+
in assets). Additionally, this partnership solidifies Busey Bank’s
position as #13 in total deposit market share across the state of
Illinois and #4 in deposit share for banks headquartered in
Illinois.
M&M Bank was founded in 1969 as a locally-owned bank valuing
its roles and responsibilities as a community bank, bringing a
focused expertise in business banking. M&M Bank continues to be
dedicated to its founding principles by being actively involved in
the communities it serves and providing unparalleled service
delivered by experienced local professionals. As of December 31,
2023, M&M Bank had total consolidated assets of $0.5 billion,
total loans of $0.4 billion and total deposits of $0.4 billion.
M&M Chief Executive Officer and Director Brad W. Butler
shared, “Thanks to talented associates, both Busey and M&M have
proven successful in providing premier customer service while
building and maintaining strong generational relationships with
those we serve. We are thrilled M&M Bank customers will
continue to experience service excellence with the bankers they
know and trust, while benefiting from expanded banking products and
Busey’s extensive service center footprint across Illinois,
Missouri, Florida and Indiana.”
Both companies support and value an engaged and empowered
workforce and are committed to building a premier,
service-oriented, community banking experience. Busey has been
named among American Banker’s Best Banks to Work For since 2016;
voted as one of the Best Places to Work in Illinois by associates
since 2016; listed among 2022 and 2023’s America’s Best Banks by
Forbes—in addition to various wellness, training and development,
philanthropic and other workplace awards. We are honored to be
consistently recognized nationally and locally for our engaged
culture of integrity and commitment to community development.
Barack Ferrazzano Kirschbaum & Nagelberg LLP served as legal
counsel to Busey. ArentFox Schiff LLP served as legal counsel and
Keefe, Bruyette & Woods, Inc., a Stifel Company served as
financial advisor to M&M.
About First Busey CorporationAs of December 31,
2023, First Busey Corporation (Nasdaq: BUSE) was a $12.28 billion
financial holding company headquartered in Champaign, Illinois.
Busey Bank, a wholly-owned bank subsidiary of First Busey
Corporation, had total assets of $12.25 billion as of December 31,
2023, and is headquartered in Champaign, Illinois. Busey Bank
currently has 58 banking centers, with 21 in the Central Illinois
markets of Champaign, Peoria, Bloomington, and Decatur, 13 in
suburban Chicago markets, 20 in the St. Louis metropolitan area, 1
in Indianapolis and 3 in southwest Florida. More information about
Busey Bank can be found at busey.com.
Through Busey’s Wealth Management division, Busey Bank provides
a full range of asset management, investment, brokerage, fiduciary,
philanthropic advisory, tax preparation, and farm management
services to individuals, businesses, and foundations. Assets under
care totaled $12.14 billion as of December 31, 2023. More
information about Busey’s Wealth Management services can be found
at busey.com/wealthmanagement.
Busey Bank’s wholly-owned subsidiary, FirsTech Inc.
(“FirsTech”), specializes in the evolving financial technology
needs of small and medium-sized businesses, highly regulated
enterprise industries, and financial institutions. FirsTech
provides comprehensive and innovative payment technology solutions
including online, mobile, and voice-recognition bill payments;
money and data movement; merchant services; direct debit services;
lockbox remittance processing for payments made by mail; and
walk-in payments at retail agents. Additionally, FirsTech
simplifies client workflows through integrations enabling support
with billing, reconciliation, bill reminders, and treasury
services. More information about FirsTech can be found at
firstechpayments.com.
About Merchants and Manufacturers BankM&M
Bank is a wholly-owned bank subsidiary of First Busey Corporation
acquired in the merger. Headquartered in Joliet, Illinois, M&M
Bank has several locations in the Chicago-Naperville-Elgin,
IL-IN-WI Metropolitan Statistical Area (MSA). M&M Bank focuses
on serving privately held manufacturers and distributors and select
service businesses, particularly in the Greater Chicago area.
M&M Bank provides a range of financial services and has
developed a unique Life Equity Loan® program. For more information,
visit m-mbank.com.
Contacts |
|
Jeffrey D. Jones, EVP & CFOFirst Busey Corporation(217)
365-4500jeff.jones@busey.com |
Amy L. Randolph, EVP & COOFirst Busey Corporation(217)
365-4500amy.randolph@busey.com |
Special Note Concerning Forward-Looking
StatementsThis document may contain forward-looking
statements within the meaning of the Private Securities Litigation
Reform Act of 1995 with respect to the financial condition, results
of operations, plans, objectives, future performance, and business
of First Busey Corporation (“Busey”). Forward-looking statements,
which may be based upon beliefs, expectations and assumptions of
Busey’s management and on information currently available to
management, are generally identifiable by the use of words such as
“believe,” “expect,” “anticipate,” “plan,” “intend,” “estimate,”
“may,” “will,” “would,” “could,” “should” or other similar
expressions. Additionally, all statements in this document,
including forward-looking statements, speak only as of the date
they are made, and Busey undertakes no obligation to update any
statement in light of new information or future events. A number of
factors, many of which are beyond the ability of Busey to control
or predict, could cause actual results to differ materially from
those in any forward-looking statements.
These factors include, among others, the following: (1) the
strength of the local, state, national, and international economy
(including effects of inflationary pressures and supply chain
constraints); (2) the economic impact of any future terrorist
threats or attacks, widespread disease or pandemics (including the
Coronavirus Disease 2019 pandemic), or other adverse external
events that could cause economic deterioration or instability in
credit markets (including Russia’s invasion of Ukraine and the
Israeli-Palestinian conflict); (3) changes in state and federal
laws, regulations, and governmental policies concerning Busey's
general business (including changes in response to the recent
failures of other banks); (4) changes in accounting policies and
practices; (5) changes in interest rates and prepayment rates of
Busey’s assets (including the impact of the London Interbank
Offered Rate phase-out and the recent and potential additional rate
increases by the Federal Reserve); (6) increased competition in the
financial services sector (including from non-bank competitors such
as credit unions and fintech companies) and the inability to
attract new customers; (7) changes in technology and the ability to
develop and maintain secure and reliable electronic systems; (8)
the loss of key executives or associates; (9) changes in consumer
spending; (10) unexpected results of acquisitions, including the
acquisition of Merchants and Manufacturers Bank Corporation; (11)
unexpected outcomes of existing or new litigation involving Busey;
(12) fluctuations in the value of securities held in Busey’s
securities portfolio; (13) concentrations within Busey’s loan
portfolio, large loans to certain borrowers, and large deposits
from certain clients; (14) the concentration of large deposits from
certain clients who have balances above current FDIC insurance
limits and may withdraw deposits to diversify their exposure; (15)
the level of non-performing assets on Busey’s balance sheets; (16)
interruptions involving information technology and communications
systems or third-party servicers; (17) breaches or failures of
information security controls or cybersecurity-related incidents;
and (18) the economic impact of exceptional weather occurrences
such as tornadoes, hurricanes, floods, blizzards, and droughts.
These risks and uncertainties should be considered in evaluating
forward-looking statements and undue reliance should not be placed
on such statements.
Additional information concerning Busey and its business,
including additional factors that could materially affect Busey’s
financial results, is included in Busey’s filings with the
Securities and Exchange Commission.
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