Federal Reserve Board Announces Approval of Proposal by First Busey Corporation
Date: January 16, 2025 | Time: 9:00 PM EST
Washington, D.C. – The Federal Reserve Board (FRB) has approved a proposal by First Busey Corporation (NASDAQ: BUSE), a Champaign, Illinois-based financial holding company, to acquire the assets and assume the liabilities of CNB Bancshares, Inc. (NASDAQ: CNBB), a Carlinville, Illinois-based financial holding company, through First Busey’s wholly-owned subsidiary, First Busey Bank.
The proposed acquisition would create a combined financial institution with approximately $19 billion in assets, $14 billion in deposits, and 88 branches in Illinois, Missouri, and Indiana. The transaction is expected to be completed in the second quarter of 2025, subject to customary closing conditions, including the approval of the CNB Bancshares shareholders and regulatory approvals.
Key Terms of the Acquisition:
- First Busey will acquire all of the outstanding shares of CNB Bancshares for a combination of cash and First Busey stock.
- CNB shareholders will receive $4.84 in cash and 0.9633 shares of First Busey common stock for each share of CNB common stock they own.
- Based on First Busey’s closing stock price of $34.85 on January 16, 2025, the transaction values CNB Bancshares at approximately $1.25 billion.
Benefits of the Acquisition:
- Enhanced Scale and Market Position: The combined bank will become one of the largest regional banks in the Midwest, providing a broader range of financial products and services to a larger customer base.
- Expanded Branch Network: The acquisition will give First Busey a significant presence in the St. Louis and Metro East markets, complementing its existing footprint.
- Improved Efficiency and Cost Savings: Combining operations is expected to result in improved efficiency and cost savings through consolidation and operational synergies.
- Stronger Capital Position: The transaction will enhance First Busey’s capital position and support its continued growth plans.
Management Comments:
“We are excited about the opportunity to combine with CNB Bancshares and create a larger, more diversified, and stronger financial institution,” said Gerhard H. Gress Jr., Chairman, President, and CEO of First Busey Corporation. “This acquisition will enhance our scale, expand our branch network, and position us for continued growth in the Midwest.”
William D. Loeffler, President and CEO of CNB Bancshares, stated, “Our board of directors unanimously believes that this transaction is the right next step for CNB Bancshares and our shareholders. First Busey shares our commitment to community banking and customer service, and we believe that our customers will benefit significantly from the expanded resources and capabilities that will come with this combination.”
Advisors:
Keefe, Bruyette & Woods, Inc. served as financial advisor to First Busey, while Piper Sandler & Co. served as financial advisor to CNB Bancshares. Wachtell, Lipton, Rosen & Katz served as legal counsel to First Busey, and Jones Day served as legal counsel to CNB Bancshares.
Federal Reserve Board announces approval of proposal by First Busey Corporation
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