First Busey in Champaign, Ill., has agreed to buy Cummins-American in Glenview, Ill.
The $10.5 billion-asset First Busey said Tuesday that it will pay $190.8 million in cash and stock for the parent of the $1.4 billion-asset Glenview State Bank. The deal, which is expected to close in the second quarter, priced Cummins-American at 109% of its tangible book value.
Cummins-American will pay its shareholders a special dividend of $60 million before the deal closes.
Glenview State has seven branches in Chicago's northern suburbs.
“We believe this strategic merger will benefit our clients through enhanced capabilities and products in commercial banking, wealth management and depository services,” Van Dukeman, First Busey’s president and CEO, said in a press release.
“A growing, dynamic organization presents more professional growth opportunities for our associates,” Dukeman added.
The deal is expected to be 6.3% accretive to First Busey's earnings in its first year of fully recognized cost savings. First Busey said it plans to cut about half of Cummins-American's annual noninterest expenses.
It should take about three years for First Busey to earn back the deal's expected 1.1% dilution to its tangible book value. First Busey said it expects to incur $23.3 million in merger-related expenses.
Vedder Price and Stephens advised First Busey. Barack Ferrazzano Kirschbaum & Nagelberg and Piper Sandler advised Cummins-American.
