Piper Sandler has maintained its Overweight rating and $32.00 price target for First Busey (NASDAQ:BUSE) Corporation (NASDAQ: BUSE) shares. The firm's stance comes following First Busey's announcement on August 27 that it will be acquiring CrossFirst Bankshares (NASDAQ:CFB) and its subsidiary, CrossFirst Bank. The acquisition is a significant expansion for First Busey, marking its eighth since 2014.
The deal is expected to add considerable assets to First Busey's portfolio, including $7.6 billion in assets, $6.3 billion in loans, and $6.7 billion in deposits. Furthermore, the acquisition will introduce 16 additional branches into First Busey's network.
These new branches are spread across a range of faster-growing markets in several states, including Missouri, Kansas, Oklahoma, Texas, Colorado, New Mexico, and Arizona.
The completion of the acquisition is anticipated in the first half of 2025. Once finalized, the combined entity is projected to operate with approximately $20 billion in assets, $15 billion in loans, and $17 billion in deposits.
The enlarged First Busey will then serve customers from 77 full-service branches across 10 states, significantly enlarging its footprint and market influence.
In other recent news, First Busey Corporation recently announced a merger with CrossFirst Bankshares, a move that is expected to increase First Busey's assets to approximately $20 billion and extend its reach into high-growth Western markets.
The merger, valued at around $916.8 million, is set to enhance First Busey's competitive edge in the banking sector, particularly in wealth management offerings.
Financial services firm DA Davidson has maintained a neutral stance on First Busey, with a revised price target of $24, reflecting recalibrated earnings per share estimates for the years 2024 and 2025. The firm's analysis suggests that the benefits of the merger are substantial and are adequately reflected in the current stock valuation.
In addition to these developments, First Busey Corporation also announced a quarterly cash dividend of $0.24 per share on its common stock, demonstrating its commitment to delivering shareholder value.
InvestingPro Insights
Following the strategic acquisition announcement by First Busey Corporation, current data from InvestingPro shows a robust financial outlook for the company. With a market capitalization of $1.51 billion and a price-to-earnings (P/E) ratio standing at 13.58, First Busey presents an attractive valuation compared to industry standards. Adjusted figures for the last twelve months as of Q2 2024 indicate a slightly lower P/E ratio of 13.23, suggesting a stable earnings perspective.
InvestingPro Tips highlight First Busey's commitment to shareholder returns, with a notable high shareholder yield and a track record of maintaining dividend payments for 36 consecutive years. The dividend yield currently stands at 3.6%. Additionally, the company has experienced a strong return over the last three months, with a 3-month price total return of 18.98%, reflecting positive market reception to its operational strategies. Analysts predict profitability for the company this year, reinforcing the optimistic sentiment echoed by Piper Sandler's maintained Overweight rating.
For investors seeking more in-depth analysis, there are additional InvestingPro Tips available at https://www.investing.com/pro/BUSE. These tips offer further insights into First Busey's financial health and future prospects, particularly in light of its recent expansion efforts.
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