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As a subscriber you can listen to articles at work, in the car, or while you work out. Subscribe NowOld National Bancorp, the largest financial services company headquartered in Indiana, said Wednesday that it has agreed to buy Lafayette’s biggest bank for $42 million.
Evansville-based Old National said the purchase of LSB Financial Corp., parent of Lafayette Savings Bank, will add $366 million in assets and five branches.
Old National in recent years has been aggressively bulking up its Indiana presence. In September, it agreed to buy Fort Wayne-based Tower Financial Corp. for $108 million.
Old National is paying cash and stock worth $41.67 for each LSB share—well above the stock’s $28.30 closing price on Tuesday. LSB shareholders rejoiced at the hefty premium, sending the bank’s shares up 41 percent, to $39.52, in late-morning trading Wednesday.
The purchase “continues Old National’s path of regional expansion by more than doubling our presence in the Lafayette market,” Old National CEO Bob Jones said in a prepared statement.
Old National, with $9.5 billion in assets, ranks among the 100 largest banks in the United States. In addition to Indiana, it has offices in western Kentucky, Louisville, southern Illinois and southwestern Michigan.
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