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Acquisitions | 3 Months Ended
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Mar. 31, 2022
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 has enhanced 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 operations beginning June 1, 2021. First Busey operated GSB as a separate banking subsidiary until August 14, 2021, when it was merged with and into Busey Bank. At that time, all GSB banking centers became branches of Busey Bank. ​ Under the 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 adjustments made to the cash consideration in accordance with the terms of the definitive agreement. The fair value of the common shares of First Busey issued as part of the consideration paid to the holders of CAC common stock was determined on the basis of the closing price of First Busey’s common stock on May 28, 2021, 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 $60.0 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 subject to refinement for up to one year after the closing date as additional information regarding the closing date fair values becomes available. There were no fair value adjustments recorded during the first quarter of 2022, and the Company does not expect any further adjustments will be necessary. ​ As the total consideration paid for CAC exceeded the estimated fair value of net assets acquired, goodwill of $6.3 million was recorded as a result of the acquisition. 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. ​ During the three months ended March 31, 2022, First Busey incurred $0.8 million in pre-tax acquisition expenses related to the acquisition of CAC, comprised primarily of compensation expense and data processing expense. ​ Estimated fair values of the assets acquired and liabilities assumed, as well as the fair value of consideration transferred, were as follows (dollars in thousands): ​
​ | ​ | ​ | ​
​ |  | CAC
​ |  | May 31, 2021
Assets acquired | ​ |  | ​
Cash and cash equivalents | ​ | $ | 298,637
Securities | ​ |  | 702,367
Portfolio loans, net of ACL | ​ |  | 430,470
Premises and equipment | ​ |  | 17,034
Other intangible assets | ​ | ​ | 17,340
Mortgage servicing rights | ​ |  | 629
Other assets | ​ |  | 8,176
Total assets acquired | ​ |  | 1,474,653
​ | ​ | ​ | ​
Liabilities assumed | ​ | ​ | ​
Deposits | ​ |  | 1,315,671
Other borrowings | ​ |  | 16,651
Other liabilities | ​ |  | 19,205
Total liabilities assumed | ​ |  | 1,351,527
​ | ​ | ​ | ​
Net assets acquired | ​ | $ | 123,126
​ | ​ | ​ | ​
Consideration paid: | ​ | ​ | ​
Cash | ​ | $ | 70,358
Common stock | ​ |  | 59,105
Total consideration paid | ​ | $ | 129,463
​ | ​ | ​ | ​
Goodwill | ​ | $ | 6,337
​ 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 estimated, on the date of acquisition, that $4.2 million of the contractual cash flows specific to the PCD financial assets will not be collected.

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