First Busey in Champaign, Illinois, has agreed to buy in-state peer Merchants and Manufacturers Bank Corp. for $41.6 million in cash and stock.
The $12.3 billion-asset parent of Busey Bank said after the markets closed on Monday that the deal would enhance its suburban Chicago presence by expanding its deposit market share in DuPage and Will counties, while bolstering its commercial banking customer base and wealth management capabilities.
The transaction is expected to close in the second quarter.
The $473 million-asset M&M Bank in Oakbrook Terrace, Illinois, has five branches, including three in Joliet, one in Channahon and one in its hometown.
First Busey Chairman and CEO Van Dukeman said in a press release announcing the deal that it would accelerate its ongoing efforts to expand in the Chicago area. "Being a strong, local bank for the communities we serve is important to both Busey and M&M, and thanks to outstanding associates, we both have been successful growing our companies," he said.
M&M Bank CEO Brad Butler billed the sale as a way to provide more opportunities for customers. "Our customers will continue to experience tremendous, personalized service following the merger with Busey, while benefiting from an expanded array of sophisticated commercial, consumer and wealth management services and capabilities," he said in the release.
First Busey entered the Chicago market in 2017 after agreeing to
First Busey had about $5.4 billion of assets when that deal was announced. It has more than doubled since, in large part by striking a series of acquisitions between 2017 and 2021.
Barack Ferrazzano Kirschbaum & Nagelberg served as legal counsel to First Busey. ArentFox Schiff served as legal counsel and Keefe, Bruyette & Woods served as financial advisor to M&M Bank.
