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First Busey (BUSE) Closes Merchants and Manufacturers Bank Buyout
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First Busey Corporation (BUSE - Free Report) announced that it completed the acquisition of Merchants and Manufacturers Bank Corporation (“M&M’’). BUSE entered the agreement in November 2023 in an effort to fortify its growing presence in the Chicago suburban market by expanding its deposit market share in DuPage and Will counties. Additionally, the merger will help the company strengthen its commercial banking and wealth management businesses in the coming years.
Merchants and Manufacturers Bank is a locally-owned community bank and its expertise lies in business banking. As of Dec 31, 2023, M&M had total assets of $0.5 billion, loans of $0.4 billion and deposits of $0.4 billion.
At the time of the deal announcement in November 2023, the acquisition of M&M was valued at approximately $41.6 million in a stock-and-cash deal. Per the terms of the agreement, Merchants and Manufacturers Bank’s stockholders had the right to select receiving either $117.74 in cash, 5.7294 shares of First Busey common stock, or a combination of $34.55 in cash and 4.0481 shares of BUSE common stock.
First Busey will continue to maintain M&M as a separate subsidiary until the latter merges with BUSE in June 2024.
After the completion of the acquisition, most branches of Merchants and Manufacturers Bank will changeover to operate under First Busey, except for one location in Joliet, IL, which is scheduled for closure.
This deal will expand First Busey’s footprint, across Central Illinois, suburban Chicago, the St. Louis metropolitan area, Indianapolis and Southwest Florida. As of Dec 31, 2023, the pro forma company’s combined assets were $12.8 billion, comprising $8.1 billion in loans, $10.7 billion in deposits and $12.1 billion in wealth assets under management.
This partnership will accelerate BUSE's growth, particularly in deposit, commercial banking and wealth management services. Further, the transaction will solidify BUSE's market position as the 13th largest bank in terms of total deposits in Illinois. Additionally, it secures the company's position as the fourth largest bank in terms of deposit share among Illinois-headquartered banks.
Management Comments
Chairman, president and chief executive officer (CEO) of BUSE, Mr. Van A. Dukeman, stated, “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.”
Merchants and Manufacturers Bank’s CEO and director, Mr. Brad W. Butler, said, “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.”
Our View
First Busey’s strategic acquisition of Merchants and Manufacturers Bank will boost its presence in rapidly growing markets of Chicago suburbs. This deal will also increase its deposit market share and fortify its commercial banking and wealth management businesses.
In the past six months, BUSE shares have jumped 25.8% compared with 30.8% growth of the industry.
Capital Bancorp, Inc. (CBNK - Free Report) and Integrated Financial Holdings, Inc. recently announced a definitive merger agreement, in which CBNK will acquire Integrated Financial in a cash-and-stock transaction valued at $66 million.
This transaction will establish a best-in-class nationwide lender in government guaranteed lending across both the U.S. Department of Agriculture and U.S. Small Business Administration programs. The merger will also enable CBNK to leverage Integrated Financial’s preeminent government guaranteed servicing platform, Windsor Advantage. The bank is set to benefit from the opportunities in this expanding niche market.
In March, First National Corporation (FXNC - Free Report) and Touchstone Bankshares, Inc. announced a merger agreement. Per the deal, FXNC will acquire Touchstone Bankshares in an all-stock transaction. The closing of the deal is expected in the fourth quarter of 2024, subject to shareholder and regulatory approvals and customary conditions.
The transaction between First National and Touchstone Bankshares will bring two community-focused banks, strengthening their commitment to their customers and communities. According to the deal, the combined assets of both banks are expected to be $2.1 billion, with $1.5 billion in loans, $1.8 billion in deposits and 30 branches in Virginia and two in North Carolina.
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First Busey (BUSE) Closes Merchants and Manufacturers Bank Buyout
First Busey Corporation (BUSE - Free Report) announced that it completed the acquisition of Merchants and Manufacturers Bank Corporation (“M&M’’). BUSE entered the agreement in November 2023 in an effort to fortify its growing presence in the Chicago suburban market by expanding its deposit market share in DuPage and Will counties. Additionally, the merger will help the company strengthen its commercial banking and wealth management businesses in the coming years.
Merchants and Manufacturers Bank is a locally-owned community bank and its expertise lies in business banking. As of Dec 31, 2023, M&M had total assets of $0.5 billion, loans of $0.4 billion and deposits of $0.4 billion.
At the time of the deal announcement in November 2023, the acquisition of M&M was valued at approximately $41.6 million in a stock-and-cash deal. Per the terms of the agreement, Merchants and Manufacturers Bank’s stockholders had the right to select receiving either $117.74 in cash, 5.7294 shares of First Busey common stock, or a combination of $34.55 in cash and 4.0481 shares of BUSE common stock.
First Busey will continue to maintain M&M as a separate subsidiary until the latter merges with BUSE in June 2024.
After the completion of the acquisition, most branches of Merchants and Manufacturers Bank will changeover to operate under First Busey, except for one location in Joliet, IL, which is scheduled for closure.
This deal will expand First Busey’s footprint, across Central Illinois, suburban Chicago, the St. Louis metropolitan area, Indianapolis and Southwest Florida. As of Dec 31, 2023, the pro forma company’s combined assets were $12.8 billion, comprising $8.1 billion in loans, $10.7 billion in deposits and $12.1 billion in wealth assets under management.
This partnership will accelerate BUSE's growth, particularly in deposit, commercial banking and wealth management services. Further, the transaction will solidify BUSE's market position as the 13th largest bank in terms of total deposits in Illinois. Additionally, it secures the company's position as the fourth largest bank in terms of deposit share among Illinois-headquartered banks.
Management Comments
Chairman, president and chief executive officer (CEO) of BUSE, Mr. Van A. Dukeman, stated, “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.”
Merchants and Manufacturers Bank’s CEO and director, Mr. Brad W. Butler, said, “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.”
Our View
First Busey’s strategic acquisition of Merchants and Manufacturers Bank will boost its presence in rapidly growing markets of Chicago suburbs. This deal will also increase its deposit market share and fortify its commercial banking and wealth management businesses.
In the past six months, BUSE shares have jumped 25.8% compared with 30.8% growth of the industry.
Image Source: Zacks Investment Research
Currently, BUSE carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Inorganic Expansion Efforts by Other Banks
Capital Bancorp, Inc. (CBNK - Free Report) and Integrated Financial Holdings, Inc. recently announced a definitive merger agreement, in which CBNK will acquire Integrated Financial in a cash-and-stock transaction valued at $66 million.
This transaction will establish a best-in-class nationwide lender in government guaranteed lending across both the U.S. Department of Agriculture and U.S. Small Business Administration programs. The merger will also enable CBNK to leverage Integrated Financial’s preeminent government guaranteed servicing platform, Windsor Advantage. The bank is set to benefit from the opportunities in this expanding niche market.
In March, First National Corporation (FXNC - Free Report) and Touchstone Bankshares, Inc. announced a merger agreement. Per the deal, FXNC will acquire Touchstone Bankshares in an all-stock transaction. The closing of the deal is expected in the fourth quarter of 2024, subject to shareholder and regulatory approvals and customary conditions.
The transaction between First National and Touchstone Bankshares will bring two community-focused banks, strengthening their commitment to their customers and communities. According to the deal, the combined assets of both banks are expected to be $2.1 billion, with $1.5 billion in loans, $1.8 billion in deposits and 30 branches in Virginia and two in North Carolina.