First Busey Corporation and Merchants and Manufacturers Bank Corporation Announce Election Deadline

Rhea-AI Summary

First Busey and Merchants and Manufacturers Bank announced the deadline for M&M shareholders to make merger consideration elections. Shareholders can choose between cash, Busey common stock, or a mix of both for each share of M&M common stock owned.

Insights

Financial Analyst

The merger between First Busey Corporation and Merchants and Manufacturers Bank Corporation signifies a strategic consolidation within the banking sector, which could potentially enhance market competitiveness and operational efficiency. The terms of the merger, offering M&M shareholders a choice between cash, stock, or a combination thereof, imply a flexible approach to the transaction, which could be attractive to shareholders with varying investment strategies. The cash option provides immediate liquidity, while the stock option suggests a belief in the long-term growth potential of the combined entity.

From a financial perspective, the offered exchange rates and the mix of cash and stock consideration will affect the immediate earnings per share (EPS) for Busey, as well as the company's leverage ratio. The decision by M&M shareholders will also impact the level of dilution Busey's current shareholders will face. It's essential to monitor how these financial metrics evolve post-merger to evaluate the transaction's success.

Market Research Analyst

The banking industry is experiencing a wave of consolidations, driven by the need to increase economies of scale, expand geographic footprint and enhance digital capabilities. This merger is a reflection of these industry trends. For stakeholders, the key interest lies in how the merger will position the new entity in terms of market share, product offerings and customer base. It's important to assess the potential for cross-selling opportunities and the ability to leverage technology investments across a larger customer base.

Furthermore, the impact on the regional banking landscape is noteworthy. The combined entity could potentially exert greater competitive pressure on smaller institutions, prompting further industry consolidation. Stakeholders should consider the implications for local markets, including any regulatory concerns that may arise from decreased competition.

Legal Expert

In mergers of this nature, regulatory approval is a critical factor that can influence the timeline and final structure of the deal. Compliance with banking regulations, antitrust laws and fair treatment of shareholders are paramount. The provision for adjustment and proration in the merger agreement suggests a meticulous approach to ensuring the deal adheres to legal and regulatory standards. This also indicates a level of preparedness to address potential disparities in shareholder elections, which is important for avoiding legal complications post-merger.

For investors, understanding the legal intricacies of the merger, including any conditions or contingencies outlined in the merger agreement, is important for assessing the risk and determining the potential impact on their investment. It's also vital to follow any updates from regulatory bodies that could affect the merger's progress or final terms.

CHAMPAIGN, Ill. and OAKBROOK TERRACE, Ill., March 26, 2024 (GLOBE NEWSWIRE) -- First Busey Corporation (“Busey”) (NASDAQ:BUSE), the holding company for Busey Bank, and Merchants and Manufacturers Bank Corporation (“M&M”), the holding company for Merchants and Manufacturers Bank (“M&M Bank”), today jointly announced that the election deadline for M&M shareholders of record to make merger consideration elections in connection with the previously announced merger between Busey and M&M is 5:00 p.m., Eastern Standard Time, on March 29, 2024. M&M shareholders may elect to receive either $117.74 in cash, 5.7294 shares of Busey common stock, or mixed consideration of $34.55 in cash and 4.0481 shares of Busey common stock, in exchange for each share of M&M common stock owned, subject to adjustment and proration as provided in the merger agreement.

M&M shareholders who need a duplicate copy of the election form and letter of transmittal and supplemental instructions, or who have questions about making an election prior to the election deadline, may contact Georgeson LLC, the information agent for the merger, at (866) 357-9438 or (781) 896-1483.

Busey Corporate Profile

As of December 31, 2023, First Busey Corporation (Nasdaq: BUSE) was a $12.28 billion financial holding company headquartered in Champaign, Illinois.

Busey Bank, a wholly-owned bank subsidiary of First Busey Corporation, had total assets of $12.25 billion as of December 31, 2023, and is headquartered in Champaign, Illinois. Busey Bank currently has 46 banking centers serving Illinois, eight banking centers serving Missouri, three banking centers serving southwest Florida, and one banking center in Indianapolis, Indiana. More information about Busey Bank can be found at busey.com.

Through Busey’s Wealth Management division, the Company provides a full range of asset management, investment, brokerage, fiduciary, philanthropic advisory, tax preparation, and farm management services to individuals, businesses, and foundations. Assets under care totaled $12.14 billion as of December 31, 2023. More information about Busey’s Wealth Management services can be found at busey.com/wealth-management.

Busey Bank’s wholly-owned subsidiary, FirsTech, Inc. (“FirsTech”), specializes in the evolving financial technology needs of small and medium-sized businesses, highly regulated enterprise industries, and financial institutions. FirsTech provides comprehensive and innovative payment technology solutions including online, mobile, and voice-recognition bill payments; money and data movement; merchant services; direct debit services; lockbox remittance processing for payments made by mail; and walk-in payments at retail agents. Additionally, FirsTech simplifies client workflows through integrations enabling support with billing, reconciliation, bill reminders, and treasury services. More information about FirsTech can be found at firstechpayments.com.

Busey Bank is honored to be named among America’s Best Banks by Forbes magazine for the second consecutive year. Ranked 26th overall in 2023, compared to 52nd in 2022, Busey was once again the top-ranked bank headquartered in Illinois. Busey is humbled to be named among the 2023 Best Banks to Work For by American Banker, the 2023 Best Places to Work in Money Management by Pensions and Investments, the 2023 Best Places to Work in Illinois by Daily Herald Business Ledger, and the 2023 Best Companies to Work For in Florida by Florida Trend magazine. We are honored to be consistently recognized nationally and locally for our engaged culture of integrity and commitment to community development.

For more information about us, visit busey.com.

About Merchants and Manufacturers Bank Corporation

M&M is the holding company for M&M Bank, a privately held, locally owned and operated bank established in 1969 – currently with five branch locations in the Chicago-Naperville-Elgin, IL-IN-WI Metropolitan Statistical Area (MSA). M&M Bank focuses on serving privately held manufacturers and distributors and select service businesses, particularly in the Greater Chicago area. M&M Bank provides a range of financial services and has developed a unique Life Equity Loan® program.

CONTACTS:
Jeffrey D. Jones, EVP & CFO	Amy L. Randolph, EVP & COO
First Busey Corporation	First Busey Corporation
(217) 365-4500	(217) 365-4500
jeff.jones@busey.com	amy.randolph@busey.com

FAQ

What is the merger consideration election deadline for M&M shareholders?

The merger consideration election deadline for M&M shareholders is 5:00 p.m., Eastern Standard Time, on March 29, 2024.

What options do M&M shareholders have for merger consideration?

M&M shareholders can choose to receive $117.74 in cash, 5.7294 shares of Busey common stock, or a mix of $34.55 in cash and 4.0481 shares of Busey common stock for each share of M&M common stock owned.

What do M&M shareholders need to do if they require a duplicate election form or have questions?

M&M shareholders who need a duplicate election form or have questions can request a duplicate copy of the election form and letter of transmittal and supplemental instructions.