Jan 10 - Old National Bancorp (NYSE:ONB) has announced that its bank subsidiary, Old National Bank, entered into a purchase and assumption agreement to acquire 24 retail bank branches of Bank of America. The branches are located in the Northern Indiana cities of South Bend and Elkhart, and the Southwest Michigan cities of Adrian, Battle Creek, Benton Harbor, Blissfield, Brooklyn, Constantine, Jackson, Kalamazoo, Niles, Paw Paw, Portage and St. Joseph.
Deposit and loan balances to be included in the transaction were $778.8 million and $7.7 million, respectively, as of August 2012. This transaction is subject to regulatory approval from the Office of the Comptroller of the Currency and the satisfaction of customary closing conditions.
With $9.4 billion in assets, Old National is the largest financial services holding company headquartered in Indiana. This acquisition will position Old National with more than 200 banking centers and enables the company to expand its branch network in Northern Indiana and into the communities of Southwest Michigan. Old National does not anticipate any job losses as a result of this transaction.
Growing in the Northern Indiana region and entering the state of Michigan have long been a focus of Old National. The company first joined the area in 2007 with the acquisition of St. Joseph Capital Corporation in Mishawaka. The bank then opened two new locations, one in Granger, Ind., in 2009 and another in South Bend's Eddy Street Commons in 2010. This transaction doubles the number of branches in Northern Indiana and gives current clients of Old National's South Bend and Elkhart locations the benefit of an expanded footprint. This partnership marks the company's first entry point into the state of Michigan.
"This acquisition allows us to accelerate our growth market expansion strategy and strengthens our commitment to our current clients in the Michiana area by providing an enhanced network of banking centers and continued unparalleled client care," commented Old National Bancorp's President and CEO Bob Jones. "It also allows us to fulfill our previously stated desire to expand our franchise into Southwest Michigan communities."
"We look forward to welcoming these clients to Old National and providing them with the same professional and convenient service they are accustomed to receiving," Jones added. "As Old National clients, they will experience a 178-year legacy built upon the principles of personal service and stable, secure, community-focused banking designed to help them achieve their financial goals."
Both banks will be working closely together to ensure a seamless transition for the clients' accounts and associates transferring to Old National. Clients of the banking centers included in this transaction will not experience any changes to their accounts or banking routines at this time.
Old National's legal adviser was Krieg DeVault LLP.
About Old National
Old National Bancorp (NYSE:ONB) is the largest financial services holding company headquartered in Indiana and, with $9.4 billion in assets, ranks among the top 100 banking companies in the U.S. Since its founding in Evansville in 1834, Old National has focused on community banking by building long-term, highly valued partnerships with clients in its primary footprint of Indiana, Illinois and Kentucky. In addition to providing extensive services in retail and commercial banking, wealth management, investments and brokerage, Old National also owns Old National Insurance, one of the 100 largest brokers in the U.S. For more information and financial data, please visit Investor Relations at www.oldnational.com.