First Busey Corporation Completes Acquisition of CrossFirst Bankshares, Boosting Earnings and Efficiency Metrics
First Busey Corporation has completed the acquisition of CrossFirst Bankshares, enhancing its earnings and efficiency metrics. The acquisition is expected to improve net interest income and margin, particularly in wealth and payments. Despite a rise in total deposit costs to 1.91%, it remains below peer averages. Management anticipates a slight increase in costs in Q2 2025, with normalization expected later in the year. Credit quality remains strong, supported by disciplined underwriting and reserves, despite an increase in classified assets post-acquisition.
First Busey Corporation has recently completed the acquisition of CrossFirst Bankshares, Inc. on March 1, 2025. The transaction is expected to enhance First Busey's net interest income, net interest margin (NIM), and overall earnings through cost savings and revenue synergies, particularly in the wealth and payments businesses. This acquisition is anticipated to bolster First Busey's commercial lending scale. Although there was an increase in total deposit costs post-acquisition, reaching 1.91% in the first quarter of 2025, this rate remains below peer averages. Management foresees a slight increase in the second quarter of 2025 due to the full integration of the acquired funding base, with normalization expected in the latter half of the year as wholesale funding runoff continues. Despite the acquisition-driven rise in classified assets, First Busey's credit quality remains robust, supported by disciplined underwriting and a strong reserve position.
