The Bank Slate


First Busey to buy M&M Bank in Illinois

First Busey in Champaign, Ill., is pushing deeper into Chicago with an agreement to buy Merchants and Manufacturers Bank in Oakbrook Terrace, Ill.

The $12.3 billion-asset First Busey said in a press release that it will pay $41.6 million in cash and stock for the $417 million-asset M&M Bank. The deal, which is expected to close in the second quarter, priced M&M at 142% of its tangible book value.

M&M Bank has five branches. Busey Bank will have more than 60 branches, $12.7 billion of assets, $8.3 billion of loans and $10.7 billion of deposits when the deal closes.

“With a collective, focused expertise in well-capitalized banking — built on the foundational principles of community banking — our combined franchise will pair Busey’s regionalized approach with M&M’s life equity loan products and commercial lending expertise to provide clients with personalized solutions,” Van Dukeman, Busey’s chairman, president and CEO, said in the release.

First Busey plans to cut about 40% of M&M’s annual noninterest expenses.

The deal is expected to be 6% accretive to First Buey’s 2025 and 2026 earnings per share. It should take less than two years for First Busey to earn back any dilution to its tangible book value.

Barack Ferrazzano Kirschbaum & Nagelberg advised Busey. ArentFox Schiff and Keefe, Bruyette & Woods advised M&M.

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