Old National Bancorp picked up where it left off last year, beginning 2012 with another deal in Indiana.
The Evansville company has agreed to pay $79.2 million for Indiana Community Bancorp in Columbus, Ind., which has $985 million of assets and 17 branches. Old National will pay off Indiana Community's Troubled Asset Relief Program aid as part of the deal, the two companies announced Wednesday.
"We are honored to partner with such a highly regarded institution with a focus on basic banking and a well-earned reputation for community involvement," Old National Bancorp Chief Executive Bob Jones said in a press release. "It also allows Old National to expand our service area into a vibrant, growing region and enables Indiana Bank and Trust Co.'s loyal client base to continue doing business with a community-focused, Indiana-based financial institution with a very similar culture and values." Old National has $8.9 billion of assets and about 180 branches, and describes itself as the largest financial services holding company in the state.
The deal is expected to close in the second quarter.
Under the agreement, Indiana Community's shareholders will receive 1.90 shares of Old National common stock for each of their shares. Adjustments will likely be made before the deal closes to account for any fluctuations in the price of Old National shares. Other adjustments would be made, too, if loan delinquencies at Indiana Community exceed a specified amount or the credit marks on certain loans fall outside a specified range.
"This alliance will benefit our customers through enhancements to our products and delivery services, and rewards our shareholders for their continued investment in IBT," said John Keach, Jr., Chairman & CEO of Indiana Bank and Trust Co. "The community-minded culture and strong reputation of Old National will make this transition straightforward for our customers."
Old National acquired the failed Integra Bank, its cross-town rival, on July 29, assuming roughly $1.5 billion of deposits, $1.2 billion of loans in the deal and 52 branches.
Old National said in December that it completed the sale of $185 million of deposits from four branches of the failed Integra in the Chicago area to First Midwest Bancorp Inc. in Itasca, Ill.