The holding companies of Busey Bank and South Side Bank have announced plans to merge.
First Busey Corporation, holding company for Busey Bank, and Mid Illinois Bancorp, Inc., holding company for South Side Bank of Peoria, signed a definitive agreement that would allow Busey to acquire Mid Illinois through a merger transaction that is expected to close in the second half of this year.
Following the completion of the holding company merger, it is anticipated that South Side Bank branches would take on the Busey Bank name in the first quarter of 2018.
“Our two organizations have really had a mutual respect for each other for a number of years,” said Mark Joseph, current president and CEO of South Side Bank. “We tend to have a strong passion in the communities we serve, our core values are very much aligned.”
Joseph will continue to lead the Peoria market once the acquisition is completed, becoming Busey Bank’s Executive Vice-President and Commercial Market President.
Joseph says South Side Bank customers will not notice any changes until the merger is complete and the name outside the South Side Bank branches changes.
“At that point, as always, our intention is to have very little disruption for our customers or for our employees,” Joseph said.
Jospeh says merger will result in additional resources for customers under the Busey name.
“(Busey has) a very strong wealth management division that will provide additional support for, what we feel, is the best trust department in our area in South Side Bank’s,” Joseph said.
“And just the support of having an organization like Busey that is much larger than us and will allow us to better compete with some of the bigger banks that maybe today we’re not able to. At the same time, provide the same community bank service and local decision making that we do today,” Joseph said.
Under the terms of the terms of the merger agreement, Mid Illinois shareholders would have the right to receive for each share of Mid Illinois common stock, at the election of each shareholder, and subject to proration, $227.94 in cash, 7.5149 shares of Busey common stock, or mixed consideration of $68.38 in cash and 5.26-4 shares of Busey common stock, with total consideration to consist of 70-percent stock and 30-percent cash.
“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,” said First Busey President and CEO Van A. Dukeman.
South Side Bank currently operates 13 branches in the Peoria area. Busey has five local branches.