Exploring CrossFirst Bankshares, Inc. (CFB) Investor Profile: Who’s Buying and Why?

You've been watching the regional banking sector for a clear signal, and CrossFirst Bankshares, Inc. (CFB) gave the ultimate one in the first quarter of 2025. Forget the typical retail versus institutional split; the real story of CFB's investor profile culminated in a single, massive transaction: the all-stock merger with First Busey Corporation that closed on March 3, 2025. This deal, valued at approximately $916.8 million, fundamentally changed who owned the bank and why. The investment thesis shifted from organic growth to a strategic combination, creating a premier commercial bank with approximately $20 billion in total assets and $17 billion in deposits. So, what does it mean for the former CFB shareholder who received 0.6675 shares of BUSE for every CFB share they held, and how does this new, larger entity position itself in the competitive Southwest and Midwest markets? It's a clean exit for CFB, but a complex new beginning for the combined company's investor base.

Who Invests in CrossFirst Bankshares, Inc. (CFB) and Why?

You're looking at CrossFirst Bankshares, Inc. (CFB) because the investment story for 2025 is defintely unique: it's an acquisition story. The company ceased trading on the NASDAQ effective March 4, 2025, after its merger with First Busey Corporation (BUSE) closed. So, the investor profile for the first quarter of the year was dominated by merger arbitrageurs and long-term holders positioning for the deal's closing, not traditional growth investors.

The primary attraction was the all-stock transaction valued at approximately $916.8 million, which provided a clear exit for shareholders. The final trade price on February 28, 2025, was $15.99 per share, reflecting the market's pricing of the deal's certainty just before the suspension.

Key Investor Types: The Pre-Merger Landscape

The shareholder base in early 2025 was a mix of core institutional investors, insiders, and a burst of short-term players. Institutional money-mutual funds and asset managers-held the largest block, a common trait for regional bank stocks (Banks - Regional). These institutions, like AB All Market Total Return Portfolio and SIIT Small Cap Fund, were typically long-term value investors who saw the bank's regional growth potential.

However, once the merger was announced, a new type of investor entered: the merger arbitrageur. Their strategy is simple: buy CFB stock, sell BUSE stock short, and pocket the small, low-risk difference (the spread) between the CFB price and the value of the BUSE shares they would receive upon closing. This activity kept the CFB share price tightly aligned with the deal terms.

• Institutional Investors: Core holders seeking regional banking exposure and value.
• Merger Arbitrageurs: Short-term traders capitalizing on the deal spread.
• Insiders: Management and directors, whose ownership aligns them with the company's performance.

Investment Motivations: Banking on the Acquisition Premium

For most investors buying in late 2024 and early 2025, the motivation wasn't quarterly earnings-it was the guaranteed payout from the merger. The deal provided an immediate premium for shareholders, translating into a clear, quantifiable return. For the long-term holders, the acquisition was a successful culmination of their value investment thesis.

Before the merger, the bank was attractive due to its strong regional presence and growth trajectory. CrossFirst Bankshares, Inc. was a relationship-driven commercial bank focused on high-growth markets like Dallas/Fort Worth, Denver, and Phoenix. The 2024 fiscal year results, reported in January 2025, showed a net income of $77.93 million on revenue of $250.66 million, demonstrating the underlying financial health that made it an attractive target for First Busey Corporation.

You can see more on the bank's financial condition in Breaking Down CrossFirst Bankshares, Inc. (CFB) Financial Health: Key Insights for Investors.

Investment Strategies: The Arbitrage Play

The dominant strategy in the final months was merger arbitrage. This is a low-risk, event-driven strategy. Investors bought CFB shares knowing that for each share they held, they would receive a fixed amount of First Busey Corporation (BUSE) stock. The merger consideration was 0.6675 shares of BUSE for every one share of CFB.

Here's the quick math: If BUSE was trading at $24.00, the implied value of CFB was $16.02 (0.6675 $24.00). If CFB was trading at $15.90, the arbitrageur could make $0.12 per share by buying CFB and waiting for the conversion. This strategy is only profitable if the merger closes, which it did on March 3, 2025. This focus on a fixed exchange ratio meant the price of CFB was fundamentally tied to the price of BUSE, not its own operating performance.

Next Step: Review your portfolio's BUSE holdings to confirm the correct conversion of your CFB shares at the 0.6675 ratio.

Institutional Ownership and Major Shareholders of CrossFirst Bankshares, Inc. (CFB)

If you're looking at CrossFirst Bankshares, Inc. (CFB) data in late 2025, the most important takeaway is this: the company no longer trades under the CFB ticker, as it was acquired by First Busey Corporation (BUSE) in an all-stock deal finalized on March 3, 2025. Your focus should shift to the final positions taken by institutional investors right before that conversion and their resulting stake in the combined entity.

The institutional investor profile for CFB in early 2025 was defined by the impending merger, leading to significant portfolio rebalancing. Before the final conversion, institutional shares (Long) saw a dramatic drop of -95.26% to just 41,764 shares by the time Q1 2025 filings were fully processed, with a residual value of only $665 thousand. This massive decline simply reflects the conversion of CFB stock into BUSE stock. It's defintely not a sell-off, but a mechanical change.

Top Institutional Investors and Final Shareholdings

Leading up to the merger, institutional investors were actively adjusting their positions, either accumulating shares to capture the arbitrage spread (the difference between the CFB stock price and the implied value of BUSE shares) or reducing their exposure. The largest individual move reported early in 2025 came from T. Rowe Price Investment Management, Inc., a major player who had been steadily reducing its stake. In a January 8, 2025 filing, they reported a -52.70% decrease, lowering their position from 5,955,379 shares to 2,817,060 shares.

Other institutional holders were positioning themselves for the acquisition. Looking at the activity in the quarter immediately preceding the final merger approval, you saw a split in strategy: 81 institutional investors added shares, while 69 decreased their positions. This kind of churn is typical in a merger arbitrage situation. For example, QUBE RESEARCH & TECHNOLOGIES LTD added 696,245 shares, while NORTH REEF CAPITAL MANAGEMENT LP removed their entire position of 849,760 shares in Q3 2024. Here's the quick math on the final conversion:

• Conversion Ratio: Each CFB share was converted into 0.6675 BUSE Common Shares.
• Total Deal Value: The all-stock transaction was valued at approximately $916.8 million.

The Impact of Institutional Investors: The Merger Catalyst

The primary role of CFB's institutional investors in 2025 was to act as the swing vote that approved the acquisition, fundamentally changing the company's future. The merger with First Busey Corporation was approved by shareholders on December 20, 2024, paving the way for the March 3, 2025 closing. This strategic move was the ultimate decision-maker for the stock price, locking in a valuation of approximately $18.28 per share for CFB shareholders, based on the BUSE stock price at the time of the announcement.

Institutional support for the merger was critical because it offered CrossFirst Bankshares, Inc. shareholders a stake in a larger, more diversified regional banking franchise. Post-merger, CFB shareholders collectively own approximately 36.5% of the combined First Busey Corporation entity, which now boasts over $20 billion in total assets. This strategic pivot was the clear opportunity seen by the majority of the institutional money. You can dive deeper into the financial rationale behind this move by reading Breaking Down CrossFirst Bankshares, Inc. (CFB) Financial Health: Key Insights for Investors.

The institutional impact was not just on the stock price, but on the long-term strategy, transitioning CFB from an independent regional bank to a key part of a larger, multi-state commercial banking powerhouse.

Here is a snapshot of the major institutional activity leading into the 2025 merger:

What this estimate hides, of course, is the final conversion to BUSE shares, which is the true end-game for all these positions. Your next step, as an investor who held CFB, is to analyze First Busey Corporation's (BUSE) Q2 2025 earnings, which were reported on July 23, 2025, to see how the combined entity is performing and what your new investment looks like.

Key Investors and Their Impact on CrossFirst Bankshares, Inc. (CFB)

The investor profile for CrossFirst Bankshares, Inc. (CFB) is defined by its successful exit in the 2025 fiscal year, as the company was acquired by First Busey Corporation in an all-stock deal valued at approximately $916.8 million. You need to stop thinking about a standalone CFB stock and start analyzing the quality of the exit, because that is the last action its investors took.

The typical CFB investor was a regional bank specialist-a patient holder looking for a clear growth trajectory or a strategic acquisition target. The investor base was primarily composed of smaller to mid-sized institutional funds and a significant number of individual investors, which is common for a bank with total assets of $7.7 billion as of December 31, 2024. These investors ultimately cashed out their equity stake for shares in a larger, more diversified entity.

Notable Investors and the Acquisition Catalyst

Unlike a mega-cap stock that might be dominated by a BlackRock or Vanguard, CrossFirst Bankshares, Inc.'s institutional ownership was more diffused. The largest institutional holders, based on filings just prior to the merger, included smaller, specialized funds. These funds are often more attuned to regional banking mergers and acquisitions (M&A) cycles, which is defintely the key to understanding the CFB trade.

• AB All Market Total Return Portfolio: A notable holder, representing a fund seeking total returns, often through capital appreciation and income.

• SIIT Small Cap Funds: Multiple funds like the Siit Small Cap Fund and SIIT Small Cap II Fund held positions, indicating the stock was generally categorized as a small-cap banking play.

• Insider Confidence: Director Bruce George made a notable purchase of shares valued at $100,000, signaling strong insider belief in the company's value, which likely underpinned the board's confidence in the merger price.

The ultimate catalyst was the all-stock merger agreement with First Busey Corporation, announced in late 2024 and completed on March 1, 2025. Shareholders received 0.6675 shares of First Busey Corporation common stock for each share of CrossFirst Bankshares, Inc. common stock.

Investor Influence: The Vote for Scale and Income

The primary influence of CrossFirst Bankshares, Inc.'s investor base was their overwhelming support for the First Busey Corporation acquisition. This was a clear vote for scale, increased diversification, and immediate income.

Here's the quick math: CrossFirst Bankshares, Inc. common stock did not pay a dividend, but the merger converted their shares into First Busey Corporation stock, making them immediately eligible for First Busey Corporation's ongoing dividends. This transition from a non-dividend-paying growth stock to a dividend-paying regional bank stock was a massive incentive for a value-oriented investor base.

The shareholder approvals for the merger were secured on December 20, 2024, a critical hurdle that showed investors were fully onboard with the strategic rationale. The former CrossFirst Bankshares, Inc. shareholders now own approximately 36.5% of the combined entity, giving them a significant minority stake and a voice in the future of the larger, $20 billion asset bank.

What this estimate hides is the tax-free nature of the transaction for U.S. federal income tax purposes, which was a key benefit for long-term holders. For a deeper dive into the financial health that made CrossFirst Bankshares, Inc. an attractive target, you should review Breaking Down CrossFirst Bankshares, Inc. (CFB) Financial Health: Key Insights for Investors.

Recent Moves: The Final Transaction

The most recent and final move by investors was the conversion of their shares on February 28, 2025, the last day CrossFirst Bankshares, Inc. common stock traded on the NASDAQ. This was the culmination of a strategic process that delivered a clear premium for shareholders.

The table below summarizes the core of the transaction, which represents the final disposition of the investor profile:

Your action now is to shift your focus from tracking CFB to understanding First Busey Corporation's strategy, especially how they integrate the $14 billion in wealth assets under care that the combined company now holds.

Market Impact and Investor Sentiment

The investor profile for CrossFirst Bankshares, Inc. (CFB) in the 2025 fiscal year is defintely unique: the company was acquired by First Busey Corporation (BUSE) in an all-stock merger that closed on March 3, 2025. So, the question of who's buying and why shifts from CFB's standalone stock to the strategic rationale of the acquisition and the sentiment of former CFB shareholders who now hold BUSE stock. The immediate sentiment surrounding the deal was overwhelmingly positive among shareholders of both companies, with the merger proposals receiving strong approval at the special meetings held on December 20, 2024.

For the former CFB shareholders, the merger consideration was 0.6675 of a share of First Busey Corporation Class A Common Stock for each CFB share they held. This move essentially translated their investment into a stake in a larger, more diversified regional bank. The last reported full-year 2024 earnings for CrossFirst Bankshares were strong, with revenue at $250.66 million and earnings at $77.93 million, making it an attractive target for a growth-focused acquisition.

The few remaining institutional owners listed in regulatory filings post-merger, such as AB All Market Total Return Portfolio Class A and SIIT Small Cap Fund - Class A, hold only a residual amount of shares, totaling just 41,764 shares as of May 23, 2025, which reflects the near-complete transition of ownership.

Recent Market Reactions and Ownership Transition

The most significant market reaction was the cessation of trading itself. CrossFirst Bankshares, Inc. stock (CFB) was halted and then suspended effective March 4, 2025, following its last trading day on February 28, 2025, at a price of $15.99 per share.

The all-stock transaction was valued at approximately $916.8 million when first announced, based on BUSE's stock price at the time. This premium gave CFB shareholders a clear, tangible return, translating to an implied value of about $18.28 per share back in August 2024. That's a clear win for exiting shareholders.

The ownership structure of the combined entity, First Busey Corporation, now shows that former CrossFirst Bankshares, Inc. stockholders own approximately 36.5% of the fully diluted shares, while BUSE's pre-merger stockholders own nearly 63.5%. This is a substantial ownership stake, giving former CFB investors a significant voice in the combined company's future. For a deeper dive into the company's background and how this merger came to be, you can check out CrossFirst Bankshares, Inc. (CFB): History, Ownership, Mission, How It Works & Makes Money.

• Last CFB Trade Price: $15.99 (Feb 28, 2025)
• Merger Consideration: 0.6675 shares of BUSE per CFB share
• Former CFB Shareholder Ownership in BUSE: Approximately 36.5%

Analyst Perspectives on the Combined Future

Before the merger closed, analysts were bullish on CrossFirst Bankshares, Inc. The consensus rating from three analysts was a 'Strong Buy,' with an average 12-month price target of $19.33 as of late 2024. This positive outlook was largely validated by the acquisition premium.

Post-merger, the focus shifts to the combined entity's performance. The strategic rationale was compelling: the merger created a premier full-service commercial bank with approximately $20 billion in total assets, $17 billion in total deposits, and $15 billion in total loans. Here's the quick math on the combined scale:

Analysts anticipate that the merger will be highly accretive, meaning it will add to the new parent company's earnings. Pro forma projections predict an accretion of almost 20% in First Busey Corporation's earnings per share (EPS) in 2026, the first full year of merged operations. This is the key opportunity for former CFB investors: they traded a smaller bank's stock for a piece of a much larger, more efficient operation that is expected to drive significant EPS growth. The combined scale and presence across 10 states, including high-growth areas like Dallas/Fort Worth and Phoenix, is the core reason the analysts are positive on the long-term outlook for the new entity.