Old National making entry into Minnesota with $303M acquisition

Old National Bancorp. announced plans Tuesday to acquire St. Paul, Minnesota-based Anchor Bancorp Inc. in a deal valued at $303 million.

Old National—the largest financial services holding company headquartered in Indiana—will be making its first entry into Minnesota with the acquisition.

Anchor Bank, founded in 1967, is one of the largest banks based in the Twin Cities. It has 18 total branches in St. Paul-Minneapolis area.

Old National has about 200 branches, with more than 100 of those in Indiana, but it also has 45 branches in Wisconsin, 32 in Michigan, 15 in Kentucky and four in Illinois.

“This partnership, which marks Old National’s entry into Minnesota, is a natural extension of our franchise,” Old National President and CEO Bob Jones said in written comments. “Not only does it position us in strong, vibrant markets with proven growth potential, it also represents a perfect cultural fit and an opportunity to continue the strong legacy of service that has distinguished Anchor Bank for 50 years.”

Anchor had $2.1 billion in total assets, $1.6 billion in total loans, $1.7 billion in deposits and $164 million in common shareholder equity as of June 30.
Evansville-based Old National has $15 billion in total assets.

Under the terms of the agreement, Anchor shareholders will receive 1.35 shares of Old National stock and $2.625 in cash for each share of stock of Anchor they hold. Based on Old National’s closing share price of $16.45 Monday, the total transaction is valued at about $303.2 million.

That figure could change based on fluctuations in the stock price. The deal is expected to close in the first quarter of 2018.

Old National was advised by Keefe, Bruyette and Woods Inc. and the law firm of Krieg DeVault LLP.

Anchor was advised by Sandler O’Neill + Partners L.P. and the law firm of Barack Ferrazzano Kirschbaum & Nagelberg LLP.

Old National shares were up 7 cents Tuesday morning, to $16.52 each.