First Busey (BUSE) and First Community (FCFP) to Merge in $235.8M Deal

First Busey Corporation (“Busey”) (NASDAQ: BUSE), the holding company for Busey Bank, and First Community Financial Partners, Inc. (“First Community”) (NASDAQ: FCFP), the holding company for First Community Financial Bank, today jointly announced the signing of a definitive agreement pursuant to which Busey will acquire First Community through a merger transaction. The acquisition provides Busey entrance into the demographically and economically attractive southwest suburban markets of the greater Chicagoland area.

Under the terms of the merger agreement, First Community shareholders will receive 0.396 shares of BUSE common stock and $1.35 in cash for each share of FCFP common stock. Based upon Busey’s 5-day volume weighted average closing price of $29.31 as of February 3, 2017, the implied per share purchase price is $12.95 with an aggregate transaction value of approximately $235.8 million. The transaction is anticipated to close mid-2017, subject to customary closing conditions and required approvals. Upon completion of the holding company merger, we anticipate merging First Community Financial Bank with and into Busey Bank in late 2017.

First Busey President and Chief Executive Officer Van A. Dukeman said, “This business combination is consistent with our strategy of expanding into markets with both population and commercial density in the Midwest through disciplined partnerships with companies who have similar operating and cultural philosophies. Joining two of the best community banks in Illinois together offers significant growth possibilities for the combined customer, associate, community and shareholder base.”

Founded in 2004, and with more than $1.26 billion in assets, First Community operates as a state chartered commercial bank with nine branches in Will, DuPage and Grundy counties, which encompass portions of the southwestern suburbs of Chicago. These markets are home to more than 1.67 million people; 593,000 households; and nearly 70,000 businesses. Roy C. Thygesen, First Community’s President and Chief Executive Officer, will continue to lead First Community through the merger. Once the acquisition is completed, Thygesen will be named Busey Bank’s Executive Vice-President and Market President, Northern Illinois.

“First Community has solid, experienced leadership, supported by outstanding community-minded commercial and retail banking teams. We look forward to working together to expand into the greater Chicagoland market, and remain committed to providing premier service experiences in the communities where we work and live,” concluded Dukeman.

Roy C. Thygesen, Chief Executive Officer of First Community said, “Busey is the right strategic partner—one whose employee-focused culture and vision of service excellence aligns perfectly with the principles First Community was founded upon.”

“We are excited that First Community customers will be able to take advantage of an expanded array of sophisticated commercial, consumer and wealth management services and capabilities. As importantly, our combined size gives us the lending capacity to support growth in our clients’ credit needs for years to come, delivered in the community banking approach they have come to expect, by the same bankers they know,” Thygesen concluded.

Both companies value an engaged and empowered workforce, and are committed to building a premier, service-oriented, community brand experience. Busey was recently named one of the Best Places to Work in Illinois, as well as named one of American Banker’s 2016 Best Banks to Work For. Further, both Busey and First Community were named among the top performing small-cap banks and thrifts—Sm-All Stars—by Sandler O’Neill + Partners, L.P. this past year. They were two of 26 selected in the nation, and the only two Illinois banks to be named.

Barack Ferrazzano Kirschbaum & Nagelberg LLP served as legal counsel to First Busey Corporation and Stephens Inc. served as financial advisor and provided a fairness opinion to First Busey Corporation. Howard & Howard Attorneys PLLC served as legal counsel to First Community Financial Partners, Inc. and FIG Partners served as financial advisor and provided a fairness opinion to First Community Financial Partners, Inc.

Busey Corporate ProfileAs of December 31, 2016, First Busey Corporation (Nasdaq: BUSE) was a $5.4 billion financial holding company headquartered in Champaign, Illinois. Busey Bank, a wholly-owned bank subsidiary, is headquartered in Champaign, Illinois and has twenty-seven banking centers serving Illinois, thirteen banking centers in the St. Louis, Missouri metropolitan area, five banking centers serving southwest Florida and a banking center in Indianapolis, Indiana. Busey Bank also offers mortgage loan products through seventeen loan production offices in the St. Louis, Kansas City, Chicago, Omaha-Council Bluffs metropolitan areas and across the Midwest. Trevett Capital Partners, a wealth management division of Busey Bank, provides asset management, investment and fiduciary services to high net worth clients in southwest Florida. The wealth management professionals of Trevett Capital Partners can be reached through trevettcapitalpartners.com. Busey Bank had total assets of $5.4 billion as of December 31, 2016.

In addition, Busey Bank owns a retail payment processing subsidiary, FirsTech, Inc., which processes over 27 million transactions per year using online bill payment, lockbox processing and walk-in payments at its 3,000 agent locations in 36 states. More information about FirsTech, Inc. can be found at firstechpayments.com.

Busey Wealth Management is a wholly-owned subsidiary of First Busey Corporation. Through Busey Trust Company, Busey Wealth Management provides asset management, investment and fiduciary services to individuals, businesses and foundations. As of December 31, 2016, Busey Wealth Management’s assets under care were approximately $5.4 billion.

For more information about us, visit http://www.busey.com.

You May Also Be Interested In

• KKR near $1.6 billion deal to acquire CIRCOR (CIR), including debt - WSJ
• CIRCOR (CIR) to be acquired by KKR in a $1.6 billion deal
• Valley National upgraded by JPMorgan, citing overblown real estate concerns