Old National Bancorp (ONB) in Evansville, Ind., has agreed to buy LSB Financial (LSBI) in Lafayette, Ind.
The $9.6 billion-asset Old National will pay about $67 million, or $41.67 a share, in cash and stock for the $366 million-asset LSB.
Old National said in a press release Wednesday that it expects the deal to add $7.5 million, or 3 cents a share, to its 2015 earnings. LSB has five branches and $312 million in deposits.
"This partnership continues Old National's path of regional expansion by more than doubling our presence in the Lafayette market, and it also marks the union of two like-minded banks with outstanding legacies of client service and community engagement," Bob Jones, Old National president and chief executive, said in the release.
Old National has been an aggressive acquirer in the last year as Jones looks to reach $12 billion in assets. Banks that cross $10 billion in assets face caps on interchange fees and added regulatory scrutiny.
Old National said it expects to complete the LSB acquisition during the fourth quarter. Keefe, Bruyette and Woods and Krieg DeVault advised Old National. Sandler O'Neill and Barnes & Thornburg advised LSB.