CrossFirst Bankshares Merger with First Busey Corporation Gains Regulatory Approval

The transaction is expected to close on March 1, 2025, pending final regulatory clearance.

January 21, 2025

Regulatory Green Light for CrossFirst and Busey Merger

CrossFirst Bankshares, Inc. has received regulatory approval for its planned merger with First Busey Corporation, bringing the transaction one step closer to completion. The Federal Reserve Board has given its authorization, clearing the way for CrossFirst Bank to merge with Busey Bank. The companies now anticipate finalizing the deal on March 1, 2025, provided that all remaining conditions are met, including approval from the Illinois Department of Financial and Professional Regulation.

The merger was originally announced in August 2024 and is structured to integrate CrossFirst’s banking operations under Busey’s corporate umbrella. Once the transaction is finalized, Busey Bank will continue as the surviving entity, strengthening its position in the financial sector. The Kansas Office of the State Bank Commissioner has also approved the deal, reinforcing regulatory confidence in the merger’s structure.

Strategic Implications and Market Position

The combination of CrossFirst and Busey is expected to create a stronger financial institution with an expanded market footprint. CrossFirst’s presence in Kansas and neighboring regions will complement Busey’s more extensive operations across the Midwest. By merging resources and expertise, the companies expect to enhance operational efficiencies, broaden customer offerings, and improve digital banking capabilities.

Despite these anticipated benefits, management acknowledges the challenges that often accompany large-scale mergers. Successfully integrating corporate cultures, retaining key personnel, and maintaining strong customer relationships will be critical for the long-term success of the newly combined entity. Furthermore, regulatory oversight will remain a key focus until all merger conditions are fulfilled and the transition is officially complete.

Market Reaction and Forward-Looking Statements

Following the latest regulatory milestone, CrossFirst and Busey issued a joint statement reaffirming their commitment to a smooth and strategic transition. However, as with any significant corporate transaction, uncertainties remain. Both companies have acknowledged that factors such as broader economic conditions, potential legal complexities, and the challenges of post-merger integration could impact the final outcome.

Investors and analysts are closely monitoring the transaction, particularly in terms of its financial implications and long-term value creation. The merger is expected to generate cost efficiencies and revenue synergies, but the extent of these benefits will become clearer in the months following the deal’s completion. Management has expressed confidence in the strategic rationale behind the merger but has also advised caution regarding the inherent risks associated with forward-looking projections.

With the closing date approaching, both institutions are focused on meeting the remaining regulatory requirements and aligning their operations for a seamless transition. If successful, the merger will establish a more competitive banking entity, better positioned to navigate an evolving financial landscape.