The holding companies of Busey Bank and the Bank of Edwardsville have agreed to merge in a $304.9m deal.
First Busey, the holding firm for Busey Bank, has signed a merger agreement with The Banc Ed, the holding firm for the Bank of Edwardsville.
The deal will help Busey’s to expand its deposit, commercial banking and wealth management services in the greater St. Louis MO-IL Metropolitan Statistical Area (MSA).
Busey president and CEO Van Dukeman said: “Combining our like-minded, 150-year organizations together as one will allow us to build upon and further strengthen our shared beliefs, community focus and commitment to service excellence.”
As per terms of the merger deal, Banc Ed stockholders will secure 8.2067 shares of common stock of First Busey and $111.53 in cash for each share of common stock of Banc Ed. The total consideration is composed of around 70% stock and 30% cash.
Based on Busey’s closing share price of $31.89 on 21 August, the implied per share purchase price is $373.24 with an aggregate deal value of around $304.9m.
Established in 1868, the Bank of Edwardsville more than 360 associates and operates 19 branch locations, as well as one loan production office.
The combined pro forma franchise will provides services to customers through 82 full-service locations, including 62 branches across Illinois, in addition to 14 in Missouri, five in Florida and one in Indiana.
It will also have combined assets of $9.6bn, $6.4bn in gross loans, $7.7bn in deposits and more than $8.6bn in assets under management.
Subject to customary closing conditions and required approvals, the deal is expected to complete in the fourth quarter of this year or early first quarter of 2019.
Once the deal concludes, the Bank of Edwardsville is expected to be included in the Busey Bank.
The bank of Edwardsville president and CEO Kevin Powers said: “Thanks to talented employees, both organizations have demonstrated success in providing premiere customer service; building and maintaining strong relationships; and providing countless hours of human, social and financial capital to meet the needs of the communities we serve.”