Continuing a three-state expansion, Evansville, Ind.-based Old National Bancorp. on Friday said it had reached an agreement to acquire a tiny central-Indiana thrift.
Old National said it agreed to an $18.1 million stock swap for First United Savings Bank, whose $138 million of assets include offices in Greencastle and Bloomington, Ind. The bank was apparently the winning bidder with an offer that amounts to $31 a share, or about 160% of book value.
"We know there were at least two others (bidding), but we don't know who they are," said Old National spokeswoman Ann Burnworth.
The deal includes a provision that allows Old National to acquire 24.8% of First United's shares in the event the merger unravels. More specific terms were not available.
The deal is the 32nd in about a decade for Old National, which has aggressively expanded beyond its base in southwestern Indiana into neighboring Illinois and Kentucky. The First United deal moves Old National north toward Indianapolis into two college towns.
The company already has a presence in Greencastle, but the merger will establish a bank in Bloomington. It is the third time Old National has acquired a thrift.
Old National uses a super-community structure to operate, allowing its affiliates to use separate identities in new markets while wringing out back office efficiencies.
