First Busey (BUSE) to Merger with Mid Illinois Bancorp in $133.4M Deal

March 13, 2017 5:01 PM EDT

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First Busey Corporation (“Busey”) (NASDAQ: BUSE), the holding company for Busey Bank, and Mid Illinois Bancorp, Inc. (“Mid Illinois”), the holding company for South Side Trust & Savings Bank of Peoria (“South Side Bank”), today jointly announced the signing of a definitive agreement pursuant to which Busey will acquire Mid Illinois through a merger transaction. The acquisition will enhance Busey’s existing deposit, commercial banking and trust and investment presence in the greater Peoria area.

Under the terms of the merger agreement, Mid Illinois shareholders will have the right to receive for each share of Mid Illinois common stock, at the election of each shareholder, and subject to proration, (i) $227.94 in cash, (ii) 7.5149 shares of Busey common stock, or (iii) mixed consideration of $68.38 in cash and 5.2604 shares of Busey common stock, with total consideration to consist of 70% stock and 30% cash. Based upon Busey’s closing price of $29.83 on March 10, 2017, the aggregate implied transaction value is approximately $133.4 million. The transaction is anticipated to close in the second half of 2017, subject to customary closing conditions and required approvals. Upon completion of the holding company merger, South Side Bank is anticipated to merge with and into Busey Bank in Q1 2018.

Founded in 1922 and with more than $665 million in bank assets and $575 million in trust assets, South Side Bank operates as a state chartered commercial and trust bank with thirteen branches located within the greater Peoria area. South Side Bank also owns Mid-Illinois Insurance Services, Inc. Busey currently operates five branches within the Peoria area. The area has a solid economic climate that is home to significant professional, insurance, health care, information technology and manufacturing businesses. Mark Joseph, Mid Illinois’s President and Chief Executive Officer, will continue to lead the greater Peoria market once the acquisition is completed, as Mr. Joseph will be named Busey Bank’s Executive Vice-President and Commercial Market President, Peoria.

First Busey President and Chief Executive Officer Van A. Dukeman said, “Busey continues to expand its franchise through balanced, integrated growth strategies that generate value for our pillars—customers, associates, communities and shareholders. The acquisition of South Side Bank enhances our presence in Peoria, a market important to us and core to our franchise. South Side is the premier community bank in Peoria with a ninety-five year history and deep ties to the communities it serves. We are excited about the opportunities South Side’s uniquely attractive deposit franchise and trust and investment business present in Peoria and across our footprint. We are pleased to partner with South Side Bank and we look forward to building upon its storied history.”

Mr. Joseph added, "Busey is a natural partner for Mid Illinois because it understands the Peoria market, offers a broad range of financial service products to meet our customers' growing needs, and shares an unwavering service commitment to customers, associates, communities and shareholders. Busey's strong capital position allows for larger credits, spurring additional economic and community development opportunities, all while preserving a community banking approach the Peoria market appreciates."

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, Busey was named among the top performing small-cap banks and thrifts—Sm-All Stars—by Sandler O’Neill + Partners, L.P. this past year. Busey was one of 27 selected in the nation and one of only two Illinois banks to be named.

Barack Ferrazzano Kirschbaum & Nagelberg LLP served as legal counsel and Sandler O’Neill + Partners, L.P. served as financial advisor to Busey. Howard & Howard Attorneys PLLC served as legal counsel and Stephens Inc. served as financial advisor to Mid Illinois.

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