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Acquisitions | 6 Months Ended
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Jun. 30, 2021
Acquisitions |
Acquisitions | Note 2: Acquisitions ​ Cummins-American Corp. ​ Effective May 31, 2021, the Company completed its acquisition of CAC, the holding company for GSB. The partnership will enhance the Company’s existing deposit, commercial banking, and wealth management presence in the Chicago-Naperville-Elgin, IL-IN-WI Metropolitan Statistical Area. GSB’s results of operations were included in the Company’s results of operation beginning June 1, 2021. Busey will operate GSB as a separate banking subsidiary of Busey until it is merged with Busey Bank, which is expected to occur in the third quarter of 2021. At the time of the bank merger, all GSB banking centers will become branches of Busey Bank. ​ Under terms of the definitive agreement, each share of CAC common stock issued and outstanding as of the effective date was converted into the right to receive 444.4783 shares of First Busey common stock and $14,173.96 in cash, which reflects the adjustments made to the cash consideration in accordance with the terms of the definitive agreement. The fair value of the common shares issued as part of the consideration paid for CAC was determined on the basis of the closing price of the Company’s common shares on the last trading day immediately preceding the acquisition date of May 31, 2021. As additional consideration provided to CAC’s shareholders in the merger, CAC paid a special dividend to its shareholders in the amount of $60 million, or $12,087.58 per share of CAC common stock, on May 28, 2021. ​ 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. Fair values are considered provisional until final fair values are determined, or the measurement period has passed, but no later than one year from the acquisition date. Reviews of third-party valuations for loans, deposits, and other intangible assets are still being performed by management. Therefore, amounts are subject to change, and could change materially from the provisional amounts discussed below. ​ As the total consideration paid for CAC exceeded the provisional fair value of net assets acquired, estimated goodwill of $6.0 million was recorded as of the acquisition date. The amount of Goodwill recognized as a result of this transaction is expected to be fully tax deductible for federal income tax purposes in accordance with the Company’s election pursuant to Section 338(h)(10) of the Internal Revenue Code. Goodwill recorded for this transaction reflects synergies expected from the acquisition and expansion within the Chicago-Naperville-Elgin, IL-IN-WI Metropolitan Statistical Area, and was assigned to the Banking operating segment. ​ The following table presents the estimated fair value of CAC’s assets acquired and liabilities assumed as of May 31, 2021 (dollars in thousands): ​
​ | ​ | ​ | ​
​ |  | Fair Value
Assets acquired | ​ |  | ​
Cash and cash equivalents | ​ | $ | 307,339
Securities | ​ |  | 702,367
Portfolio loans, net of ACL | ​ |  | 430,491
Premises and equipment | ​ |  | 17,034
Other intangible assets | ​ | ​ | 17,340
Mortgage servicing rights | ​ |  | 629
Other assets | ​ |  | 8,178
Total assets acquired | ​ |  | 1,483,378
​ | ​ | ​ | ​
Liabilities assumed | ​ | ​ | ​
Deposits | ​ |  | 1,324,396
Other borrowings | ​ |  | 16,651
Other liabilities | ​ |  | 18,853
Total liabilities assumed | ​ |  | 1,359,900
​ | ​ | ​ | ​
Net assets acquired | ​ | $ | 123,478
​ | ​ | ​ | ​
Consideration paid: | ​ | ​ | ​
Cash | ​ | $ | 70,358
Common stock | ​ |  | 59,105
Total consideration paid | ​ | $ | 129,463
​ | ​ | ​ | ​
Goodwill | ​ | $ | 5,985
​ The fair value of PCD financial assets was $60.5 million on the date of acquisition. Gross contractual amounts receivable relating to the PCD financial assets was $65.2 million. The Company estimates, on the date of acquisition, that $4.2 million of the contractual cash flows specific to the PCD financial assets will not be collected. ​ During three and six months ended June 30, 2021, First Busey incurred $2.7 million and $3.0 million, respectively, in pre-tax acquisition expenses related to the acquisition of CAC, comprised primarily of professional fees, compensation expense, and data processing expense.

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