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Acquisitions | 9 Months Ended
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Sep. 30, 2020
Acquisitions |
Acquisitions | Note 2: Acquisitions ​ The Banc Ed Corp. ​ On January 31, 2019, the Company completed its acquisition of The Banc Ed Corp. (“Banc Ed”). TheBANK of Edwardsville (“TheBANK”), Banc Ed’s wholly-owned bank subsidiary, was operated as a separate subsidiary from the completion of the acquisition until October 4, 2019 when it was merged with and into Busey Bank. At that time, TheBANK’s banking centers became banking centers of Busey Bank. ​ Under the terms of the merger agreement with Banc Ed, at the effective time of the acquisition, each share of Banc Ed common stock issued and outstanding was converted into the right to receive 8.2067 shares of the Company’s common stock, cash in lieu of fractional shares and $111.53 in cash consideration per share. The market value of the 6.7 million shares of First Busey common stock issued at the effective time of the acquisition was approximately $166.5 million based on First Busey’s closing stock price of $24.76 on January 31, 2019. ​ This transaction was accounted for using the acquisition method of accounting and, accordingly, assets acquired, liabilities assumed, and consideration exchanged was recorded at estimated fair values on the date of acquisition. As the total consideration paid for Banc Ed exceeded the net assets acquired, goodwill of $41.4 million was recorded as a result of the acquisition. Goodwill recorded in the transaction, which reflected the synergies expected from the acquisition and expansion within the St. Louis MSA, is not tax deductible and was assigned to the Banking operating segment. ​ First Busey incurred $0.2 million in pre-tax expenses related to the acquisition of Banc Ed for the three and nine months ended September 30, 2020 related to a lease termination, which is reported as a component of non-interest expense in the accompanying unaudited Consolidated Statement of Income. First Busey incurred $6.5 million and $11.5 million in pre-tax expenses related to the acquisition of Banc Ed for the three and nine months ended September 30, 2019, respectively, primarily for salaries, wages and employee benefits, professional and legal fees and deconversion expenses, all of which are reported as a component of non-interest expense in the accompanying unaudited Consolidated Statement of Income. The following table presents the estimated fair value of Banc Ed’s assets acquired and liabilities assumed as of January 31, 2019 (dollars in thousands):
​ | ​ | ​ | ​
​ | ​ | ​
​ | ​ | Fair Value
Assets acquired: | ​ |  | ​
Cash and cash equivalents | ​ | $ | 42,013
Securities | ​ |  | 692,716
Loans held for sale | ​ |  | 2,157
Portfolio loans | ​ |  | 873,336
Premises and equipment | ​ |  | 32,156
Other intangible assets | ​ | ​ | 32,617
Mortgage servicing rights | ​ |  | 6,946
Other assets | ​ |  | 57,332
Total assets acquired | ​ |  | 1,739,273
​ | ​ | ​ | ​
Liabilities assumed: | ​ | ​ | ​
Deposits | ​ |  | 1,439,203
Other borrowings | ​ |  | 63,439
Other liabilities | ​ |  | 20,153
Total liabilities assumed | ​ |  | 1,522,795
​ | ​ | ​ | ​
Net assets acquired | ​ | $ | 216,478
​ | ​ | ​ | ​
Consideration paid: | ​ | ​ | ​
Cash | ​ | $ | 91,400
Common stock | ​ |  | 166,515
Total consideration paid | ​ | $ | 257,915
​ | ​ | ​ | ​
Goodwill | ​ | $ | 41,437
​ The following table provides the unaudited pro forma information for the results of operations for the three and nine months ended September 30, 2019, as if the acquisition had occurred on January 1, 2019. The pro forma results combine the historical results of Banc Ed into the Company’s unaudited Consolidated Statements of Income, including the impact of purchase accounting adjustments including loan discount accretion, intangible assets amortization, deposit accretion and premises accretion, net of taxes. The pro forma results have been prepared for comparative purposes only and are not necessarily indicative of the results that would have been obtained had the acquisition actually occurred on January 1, 2019. No assumptions have been applied to the pro forma results of operations regarding possible revenue enhancements, expense efficiencies or asset dispositions (dollars in thousands, except per share amounts): ​
​ | ​ | ​ | ​ | ​ | ​
​ | ​ | Pro Forma
​ | Three Months Ended | ​ | Nine Months Ended
​ | ​ | September 30, 2019 | ​ | September 30, 2019
Total revenues (net interest income plus non-interest income) | $ | 104,543 | ​ | $ | 305,709
Net income |  | 30,811 | ​ | ​ | 84,742
Diluted earnings per common share |  | 0.55 | ​ | ​ | 1.51
​ ​ ​ ​ Investors’ Security Trust Company ​ On August 31, 2019, the Company completed the previously announced acquisition by Busey Bank of Investors’ Security Trust Company (“IST”), a Fort Myers, Florida wealth management firm. While the partnership is expected to add to the Company’s wealth management offerings, it is not expected to have any immediate, material impact on the Company’s earnings or overall business. This transaction was accounted for using the acquisition method of accounting and, accordingly, assets acquired, liabilities assumed, and consideration exchanged was recorded at estimated fair values on the date of acquisition. ​ First Busey incurred $0.1 million and $0.4 million in pre-tax expenses related to the acquisition of IST for the three and nine months ended September 30, 2020, respectively, primarily for contingent earn-out payments owed under the purchase agreement, which are reported as components of non-interest expense in the accompanying unaudited Consolidated Statements of Income. First Busey incurred $0.5 million and $0.7 million in pre-tax expenses related to the acquisition of IST for the three and nine months ended September 30, 2019, respectively, primarily for professional and legal fees, which are reported as a component of non-interest expense in the accompanying unaudited Consolidated Statements of Income.

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